Loading...
HomeMy WebLinkAboutOC DEPARTMENT OF EDUCATION - 1989-07-28e i J rt i !� J l'lY AGREEMENT BY AND BETWEEN THE ORANGE COUNTY DEPARTMENT OF EDUCATION AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY PERTAINING TO AMENDMENT NO. ONE TO THE OAKVIEW REDEVELOPMENT PLAN This Agreement is made and entered' Into this Z8th day of July 1989 by and among the Orange County Department of Education (hereafter referred to as the "Department") and the Huntington. Beach Redevelopment Agency (hereinafter referred to as. the "Agency"). RECITALS WHEREAS, the Agency is a redevelopment agency existing pursuant to the provisions of the Community Redevelopment La:: (California ?iealtb .and Safety Code Section 33000, je_t ,,ea. ) which has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Huntington Beach (the "City Council"); and WHEREAS, in November 1982, the City Council adopted Ordinance No. 2582 approving a•Redevelopment Plan (the "Plan") for the Oakview Redevelopment Project (the "Project"); and WHEREAS, the Agency has formulated Amendment No. One to the Oakview Redevelopment Project ("Amendment No. One"). WHEREAS, Amendment No. One, contains provisions to increase the limitation for the distribution and allocation of property tax revenues derived from property located within the Oakview Redevelopment Project Area (the "Project Area") to the Agency pursuant to California Health and Safety Code Section 33670(b) (hereafter referred to as "Added Tax Increment"); and ' WHEREAS, meetings have been held by representatives of the Department and representatives of the Agency to discuss the fiscal impact of the Project on the Department; and WHEREAS, pursuant to California Health and Safety Code Section 33401,"the Agency may -pay to the Department as a taxing agency with territory located in the Project Area, an amount of money which, in the Agency's determination, is appropriate to alleviate any financial burden or detriment caused to the Department by the implementation of Amendment No. One; and WHEREAS, the Parties agree that the allocation of all the tax increment revenue to the Agency as a result of the implementation of Amendment ho. One as proposed would cause a financial burden and detriment to the Department in the amounts set forth herein to be paid to the Department; and WHEREAS, the parties agree that the payments provided for under this Agreement are necessary to and are sufficient to alleviate the above financial burdens and detriments; and WHEREAS, for the above reasons, and to amicably resolve any differences regarding Amendment No. One, the parties hereto enter into this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows: The words and terms in this Agreement, unless a different meaning clearly appears from the context, shall have the meanings set forth as follows: (a) "Added Tax Increment" shall mean property tax revenues in excess of Three Hundred Fifty Thousand Dollars ($350,000) per Fiscal Year attributable to increases in the assessed valuation of property located within the Project Area above the valuation shown on the 1982-1983 assessment roll, which tax revenues are allocated and paid to the Agency pursuant to California Health and Safety Code Section 33670(b) in accordance with Amendment No. One (b) "Agency" shall mean the Huntington Beach Redevelopment Agency. (c) "City" shall mean the City of Huntington Beach,. a municipal corporation. (d) "Community Redevelopment Law" shall mean Part I of Division 24 of the Health & Safety Code (commencing with Section 33000). (e) "Department" shall mean the Orange County Department of Education, and'its successors. (f) "Existing.Increment Flow" shall mean the full amount of Property Tax Increment allocated and paid to the Agency in accordance with the Plan, exclusive of any and all Added Tax Increment so allocated in accordance with Amendment No. One. 5/31/89 4781n/2460/034 -2- (g) "Fiscal Year" shall :Wean the period from July 1 to and including the following June 30. (h) "Ordinance" shall mean Ordinance No. 00A,(the ordinance approving Amendment No. one). (i) "Project Area" shall :Wean that area so designated in Amendment No. One as approved by the Ordinance. (j) "Property Tax Increment" shall mean the full amount of tax revenues attributable to increases in assessed valuation above the valuation shown on -he 1982-1983 assessment' roll, which tax revenues are allocated and ai to the Agency Pursuant to California Health and Sa ety Code Section 33670(b) from the Project Area. M "Term" shall mean the period of time Amendment No. One remains in effect. Section 2 (a) The Agency agrees to pay to the Department each Fiscal Year during the term an amount equal to a12 of the Added Tax Increment allocated and paid to the Agency for the applicable Fiscal Year pursuant to subdivision (b) of Section 33670 which are attributable to increases in the rate of tax imposed for the benefit of the Department, which levy occurs after the tax year in which the Ordinance becomes effective. Such amounts shall be limited to Added Tax increment which would have been allocated to the Department after an election pursuant to Health and Safety Code Section 33676(a)(1), to the extent the then applicable law requires such allocation to an affected taxing agency which has made the election under Section 1 33676(b).. The Department has not elected to receive payments pursuant to Section 33676(a)(1) of the Health and Safety. Code v; and payments made pursuant to this Section 2 (a) shall be in lieu of payments pursuant to said Section 33676(a)(1). In the event any revenues are received by the Department pursuant to Section 3367f(a)(1) of the Health and Safety Code, the amounts payable to the Department by the Agency pursuant to this Agreement shall be reduced by an amount equal to sums received pursuant to Section 33676(a)(1), with the reduction to be made at the earliiest feasible time as determined by the Agency. (b) In addition to the foregoing, for each Fiscal Year during the Term in which the Agency receives an allocation and payment of Property Tax Increment pursuant to Health and Safety Code Section 33670(b), the Agency further agrees to pay to the Department each Fiscal Yeal an amount equal to all of the Added Tax Increment allocated to and paid to the Agency for the applicable Fiscal Year pursuant to subdivision (b) of Section 33670 which are attributable to increases in the assessed 5/31/89 478In/2460/034 -3- valuation of the taxable property located in the Project Area above the valuation shown on the 1982-1983 assessment roll pursuant to subdivision (a) of Section 33670, which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code (which increases shall not exceed an annual rate of two (2%) percent of the full cash value of taxable property as defined in California Constitution Article XIIIA, Section 2). Such amounts shall be limited to Added•Tax Increment which would have been allocated to the Department after an election pursuant to Health and Safety Code Section 33676(a)(2), to the extent the then applicable law requires such allocation to an affected taxing agency which has made the election under Section 33676(b). The Department has not elected to receive payments pursuant to Section 33676(a)(2) of the Health and Safety Code and payments made pursuant to this Section 2(b) shall be in lieu of payments pursuant to said Section 33676(a)(2). (c) The Department and the Agency agree that the base assessed valuation used in computing the payments made by the Agency to the Department pursuant to this Section 2 shall be established by the assessment roll for the 1982-83 Fiscal Year. (d) Payments pursuant to this Section 2 are subject to the conditions and limitations set forth in parts (a) through (h) of Section 4 of this Agreement. n it is agreed and acknowledged by the Department that the Agency may issue bonds and assume obligations to the fullest extent permitted by law, and that the Agency may pledge all or any portion of the Added Tax Increment to the repayment of any such obligations; provided that -the inclusion within such a pledge of Added Tax Increment attributable to the general purpose tax levy of the Department shall be allowable as a first and senior pledge only (i) with the consent of the Department or (ii) upon the payment by the Agency to the Department (or the commitment by a trustee in connection with the issuance of bonds to cause to be annually paid) from the proceeds of such issue or other revenues available to the Agency such revenues as would be payable to the Department in any year in which pledged revenues would be payable to the Department pursuant to this Agreement. The Department agrees that it shall promptly approve and execute such documents as are necessary or convenient to implement this Section 3 and facilitate the issuance of bonds (or other indebtedness) by the Agency, so long -as such documents are consistent with this Section 3. 5/31/89 4761n/2460/034 -4- Sgctlgn G Payment to the Department is subject to the following conditions and limitations: (a) Agency's obligation under this Agreement is deemed to constitute "an indebtedness" within the meaning of Health and Safety Code Sections 33670 and 33675. (b) Agency shall pay to the Department, the District, and HBP amounts due pursuant to this Agreement during each Fiscal Year within a reasonable period after Agency receives the Added Tax Increment allotment from the County Auditor -Controller provided that payments in relation to allotments received between July 1 and December 31, of any Fiscal Year shall be made no later than the following February 28; and that payments in relation to allotments received between January 1 and June 30, of any Fiscal Year shall be made no later than the following August 30. (c) The Agency's obligation to make payments hereunder shall be limited to Added Tax Increment from the Project Area received by the Agency. In no way shall the Agency be liable for such obligations from revenues of other redevelopment project areas in the City or from Existing Increment Flow or from any other revenues. The City shall have no financial obligation or any other obligations by virtue of this Agreement, and shall not be responsible for the discharge of obligations of the Agency herein. (d) No payment shall be made by the Agency in any Fiscal Year pursuant to this Agreement if such payment would impair any contract, obligation to service bonded indebtedness or the refinancing of such existing indebtedness or any other existing - obligation entered into by the Agency prior to the execution of this Agreement. (e) The Agency's obligation to make payments hereunder shall be junior and subordinate to the Agency's obligation under Health and 'Safety Code Section 33334.2. (f) Notwithstanding any other provisions of this Agreement to the contrary, the Agency's obligation to make payments to the Department under this Agreement in any single year shall not: ,(i) exceed the amount of Added Tax Increment which would have been received by the Department if all the Added Tax Increment from the Project Area had been allocated to all the affected taxing agencies without regard to the division of taxes required by Health and Safety Code Section 33670; (ii) violate'the expenditure limitation under Article XIIIB of the California Constitution of such entity; or (iii) be contrary to any provision of the laws of the State of California. 5/31/89 4781n/2460/034 -5- (g) No payments shall be made by the Agency from the Added Tax Increment to the Department except as expressly set forth in Section 2 of this Agreement. (h) The Department shall indemnify, defend and hold harmless the Agency from any claims, liabilities and causes of action asserted by any third party against the Agency by reason of the Agency's payment of funds in the manner described in Section 2 of this Agreement. Section 5 The Department agrees and covenants that it shall not file or participate in opposition to the Agency in any lawsuit attacking or otherwise questioning the validity of Amendment No. One, the adoption or approval of such Amendment No. One, any statement of indebtedness consistent with this Agreement, or any.of the findings or determinations made by Agency or City Council of the City in connection with such Amendment No. One. This Agreement constitutes the entire agreement between the Agency and the Department with respect to the matters set forth herein, and any changes, modifications or amendments thereto shall be legally binding and effective only upon duly executed written amendment hereto. Sects Qn 7 This Agreement shall become effective the date last executed below and shall continue in effect until Agency is deactivated pursuant to Section 33141 of the California Health and Safety Code or its successors; provided that this Agreement shall terminate automatically and be of no further force or effect in the event that Amendment No. One is not adopted on or before December 31, 1989, or in the event the adoption of Amendment No. One should be set aside or annulled as the result of litigation. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above Written. Dated: ORANGE COUNTY DEP, OF EDUCATION 4 By 5/31/89 4781n/2460/03r ATTEST: Approved as to form: Dated: EUNTINGTO EACH RED VELOPMENT AGENCY B y : Chairman ATTEST: By: �- Agency Clerk Executive Director Approved as to Form: Xg ncy Legal ounsel (G n ral C unsel) Ag ncy Special eou e1 5/31/89 4781n/2450/02 -�- Page 18 - Council/Agency Minutes - 6/5/89 A motion was made by Silva, seconded by Bannister, to schedule a study session on the Fiscal Year 1989-90 Redevelopment 20% Housing Set -aside Budget Recom- mendation and Implementation Plan June 19. 1989. The motion carried by the following roll call vote: AYES: Green, Winchell, Bannister, Mays, Silva DOES: None ABSTAIN: Erskine ABSENT: MacAllister Redevelopment Agency,) AGREEMENTS HITN TAXIS AGENCIES -- APPROV_ED •- TAX INCREMENT REVEN«E - AMENDEDOAlCVIEW REQEVEEOPMENT PROJECT AREA The Clerk presented a communication from the City Administrator pertaining to agreements -with taxing agencies. A motion was made by Green, seconded by Winchell. to approve and authorize the Chairman and Clerk to execute agreements•to share Tax Increment.Revenue from the Amended Oakview- Redevelopment Project Area between the Redevelopment Agency and the following Taxing agencies: Huntington Beach High .Sc, i�ool QIstrict, Ocean_ Vi ew'_Ei gmentarxSchool WstrAct, Thg County of Orange includ- ing Harbors, Beaches and Parks_ Di.ltficct and Flood Control District, Qranqe CgUnty Departmentf i n, Oraag.L-Courity Vector Qgntrol_i2i5trict- The motion carried by the following roll call vote: AYES: Green, Winchell, Bannister, Mays, Silva, Erskine NOES: None ABSENT: MacAllister l7l1Miff 4T1►!ill%t tflWlAW4tLT 4r IN INM=AmI r ilIIl7 AID s The City'Clerk presented a communication from the'•City Attorney pertaining to the joint 'proposal to provide. additional. advisory legal opinion ..-regarding zoning property as coastal conservation. A motion was made by Green, seconded by •Bannister, to approve and. authorize execution of agreements between Richard Terzian,-of -Adams, Duque & Hazeltine, and .Katherine Stone, of Freilich, Stone, Leitner & Carlisle to provide the City vith-a joint opinion and alternative solutions regarding Huntington.'Beach wetlands .conservation' at a cost to the City of $15,000.00, plus costs'.. The motion carried by the following roll call vote: AYES: Green, Winchell. Bannister, Mays, Silva, Erskine NOES: None ABSENT: MacAllister QRDINANCE NO, 2 - ADOPTED - ZONE L-HANGE—EQ.-OZ-2RH RD/ EC NJER The City Clerk presented Ordinance No. 2999 for Council consideration - ".AN ORDINANCE OF THE THE CITY OF HUNTINGTON BEACH AMENDING SECTION 9061 OF THE HUNTINGTON BEACH ORDINANCE CODE TO PROVIDE FOR CHANGE OF ZONING FROM .k-- 5t RE�� ST FOR REDEVELOPMENT CITY CC,„J' ~IL/ AGENCY ACTION RH 86-65 Date August 8, 1986 .Submitted to: Honorable Mayor/Chairman and City Council/Redevelopment s Members Submitted by: Charles W. Thompson, City Administrator/Chief Executive :�• / : , Prepiired by: Douglas N. La Belle, Deputy City Admini strator/Redeyel"opmen APPROVAL OF INCREMENT SHARING AGREEMTI�TS WI 14E � Subject: COUNTY DEPARTMENT OF EDUCATION Consistent with Council Policy? Yes [ ]New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: 1= STATEMENT OF ISSUE: As part of -the adoption of redevelopment plans in the City, the Redevelopment Agency participated with the taxing entities of the county in the fiscal review process. This resulted in an obligation of the Agency to share tax increment with such entities and the attached agreement documents one of these obligations. RECOMMENDATION: Approve and authorize execution "of the increment sharing agreement°betdeen the City and the Orange County Department of Education. ANALYSIS: As part of the process to adopt any new redevelopment project area the Agency is required to comply with what is known as the "fiscal review" process. This process offers the opportunity for all taxing entities in the county (e.g. school districts, college districts, water departments, and the county) to comment on the fiscal impact on its revenues that can be anticipated by the adoption of the plan. This process occurred in the city's redevelopment efforts for the Huntington Center Project Area and the Project Area(s). As a result of this negotiation process, an agreement has been prepared for the Agency to share future tax increment as follows: ORANGE COUNTY DEPARTMENT OF EDUCATION: Beginning in fiscal year 1990-91, the Agency will pay the department .3075 percent of the tax increment actually received by the Agency, net of the housing set -aside requirement and subordinate to any bonds the Agency may sell. This requirement is for the life of the project and applies ONLY to the Huntington Center Project Area. 0000"P e3 c... RH 86-65 August 8, 1986 Page Two The attached document has been reviewed by the Redevelopment Agency's Attorney and Special Counsel and by the counsel of the other party. The agreement with the Department of Education has been approved by its board. ALTERNATIVE ACTIONS: Do not approve the agreement. FUNDING SOURCE• Agency's obligation to pay limited to available' increment. ATTACHMENTS: I. Agreement with Department of Education. CWT/DLB/SVK:sar QOlkr FE CITY OF HUNTING'T'ON BEACH 2000 MAIN STREET CALIFORNIA 92648 O OFFICE OF THE CITY CLERK August 21, 1986 Orange County Department of Education 200 Kalmus Costa Mesa, CA 92626 Attn: Ms Rickki Cameron Enclosed is a duly executed copy of an agreement between the City of Huntington Beach and the Redevelopment Agency and the Orange County Superintendent of Schools regarding the Huntington Center Commercial District Redevelopment Project Area. Please call Steve Kohler, Senior Redevelopment Specialist if you have any questions - 536-5662. Alicia M. Wentworth City Clerk AMW:CB:js Enclosure cc: Steve Kohler Wayne Lee (Telephone: 714436-5227 ) wmMWW Jell TI r1 4, PO - M 7 n ni 3TON BEACH CALIFORNIA 92US Y CLERK C. :.a. 16 +• ./ 'mot,„ Z 't• }, r • fin.': + ; :ar �� nt between the City of and the Orange County qton Center Commercial Specialist if you have fi 4 T ralpf 4 r 1 and adoption of the Plan; and 2 WHEREAS. the City, adopted Ordinance No. 2743 on November 26, 3 1964 approving and adopting the Pian Including the use of tax Increment 4 financing; and 9 WHEREAS, pursuant to California Health and Safety Code Section G 33401, the Agency may pay to County Taxing Entities as a taxing agency with i territory located In Project Area, an amount of money which, In the Agency`s ' 8 determination Is appropriate to alloviste any financing burden or detriment 4 caused to County Taxing Entitles by the Project; and 16 WHEREAS, the parties agree that the allocation of all the tax .. 11 Increment revenue to the Agency as a result of the implementation of the Plan ► ` 12 as proposed would cause a financial burden and detriment to the Orange 13 County Superintendent of Schools, and whereas, it Is for this reason, and to 14 amicably resolve any differences regarding the legality of the Plan, that the 15 parties hereto enter Into this Agreement. 16 NOW, THEREFORE, in consideration of the foregoing and the , 17� mutual covenants and conditions herein. the parties hereto agree as follows:. . 18 19 (a) For the first five (5) fiscal ycsrs during which the 26 Agency receives tax Increment. no increment tax dollars (;0) will be paid to 21 the Orange County Superintendent of Schools. ; 22 (b) In each year, commencing with fiscal year 1190-91. that 23 taxes are allocated to and received by the Agency pursuant to Section 23670 24 of the California Health and Safety Code or Its successors, from the Project 25 Area described in Exhibit A. the Agency will pay to Orange County 26 Superintendent of Schools 0.307S percent of the Incremental tax amount so 27 allocated to and received by the Agency (representing 114.(one-fourth) of the 28 1.21 percent of property tax revenues allocated to the Orange County Super- ,�.. .L- ,E"•mac + ,r.,..n 1 2 3 4 b G %.. : Page 3 44J intendent of Schools on the beet year (1064) value by the County Audltor- Controller). Section 2. Payments to the Orango County Superintendent of Schools. as set forth in Section 1 above. are subject to the following coneWons and limitation r ; 7 (a) Agency's obligation tender this Agreement is deemed to 8 constitute "an indebtedness" within the meaning o: Health and Safety Code 0 Sections 33670 and 336T5. 10 (b) Agency shall pay to the Orango County Superintendent It of Schools amounts due pursuant to this Agreement during each fiscal year 12 within a reasonable perlod after Agency receives the tax increment allotment 13 from the County Auditor-Controllor provided that payments in relation to 14 allotments received between July 1 and December 31 of any Cseal year. shall 15 be made no later then the following February 28; and that payments in ]f, relation to allotments received between January 1 and June 30 of any fiscal 17 year, shall be made no later than the following August 30. IR (c) It is understood that certain amounts of the taxes 18 allocated to the Agency pursuant to Section 33670 of the California Health and 20 Safety Code must be set aside by Agency In special funds to service bonded 21 indebtedness and meet the Agency's obligation under Health and Safety Code 22 Section 3$334.2. The Agency's obligation to make the above -referenced pay- 23 meets to the Orange County Superintendent of Schools shall be subordinated 24 to the Agency's obligation under Health and Safety Code Section 33334.2 and 25 to bonded Indebtedness (Including without limitation Certificates of Partici- 26 pation) deemed necessary or appropriate by the Agency for the furtherance 27 of the Redevelopment PIan. If, during any fiscal year, the Agency is unable 2,q to pay the full amount due and owing to the Orange County Superintendent of `�-�«�% �3.[i \.cvrfl,:i�� f�+.;-}iy..,�• j � �y � 'r4 — . -�i :, R-} -1.,� �•�e' i• Tr.,. .- r ~w[� -}+' r ~y"rt l +J^r !' l: r'r�I� ..t -•2-+swn7- r -W • 7l .r+) •• t,�i` fi. • -,�� f .7`:".-s ."•' . 1„L' •y+ r .t.• �r-� r.''•%.r- � ti.l . ��:%1-�)•', M'. �ij'v"1..� -. ,gyp., q.J .♦Y r�o� .-..JS'.�..\ r � 1'''..:L��4:1::`:S�;+NA'�:�Y�.�.j°'�. �L�.iii�';'-�" i�.�:� :`:r.'•r: M Page 1 Schools pursuant to this Agreement, such deficit shall be paid by the Z Agency pursuant to this section in the following fiscal year. The parties 3 agree that said deferral is necessary to accomplish the purposes of the 4 Redevelopment Project at an earlier time that would otherwise be the Case in 5 that such deferral would allow for issuance of bonds with a higher principal fi amount. 7 (d) The Agency's obligation to make payments hereunder shall be 8 limited to Tax Increment from the Project Area received by the Agency.. The 9 City shall have no financing obligation by virtue to this Agreement, and shall 10 not be responsible for the discharge of obligations of the Agency herein. 11 (e) Notwithstanding any other provision of this Agreement to the 12 contrary, the Agency's obligation to make payments to the Orange County 13 Superintendent of Schools under this Agreement in any single year shall not 14 exceed the amount of property tax revenues which would have been received 15 by the Orange County Superintendent of Schools if sal the property tax 16 revenues from the Project Area had been allocated to all the affected taxing 17 agenciea without regard to the division of taxes required by Health and 18 Safety Code Section 33670. The limitations of this subsection shall not apply 19 to payments deferred pursuant to sabssctlon 2.0), 20 Section 9. 21 The Orange County Superintendent of Schools agree& that it 22 will not fife or participate in oppoaition to the Agency in any lawsuit 23 attacldng or otherwise questioning the validity of the above Redevelopment 24 Plan. or the adoption or approval of such Pion, or any of the findings, 25 determinations, or filings previously trade by Agency or City Council of the 2G City in connection with such Plan or its implementation, t 27 Section 4. 28 This Agreement conolltutos the entire agreement between the 'ti ++I.'�.s-ri..ti' ^T 4y �•,i Ff.....'�111 a��57} iii"' � Jer .rr� � i'��t•ti y � 12 13 14 IG Tv it 4�..r �'4 �.�•;r .�17 20 21 V'� it •TY r. 27 r City of •�.r�• }. t . r� _� t2-8 1• it rr: '-� .'ie r'..;41 4L.�:f;.i�. � 'fir, f• ++ � of Schools with respect to the modifications or amendments ly upon duly executed wrftt@n }'factive the date list executed ;'.t•. }.�y.• �+ ty is deactivated pursuant to Code or its successor. - executed this A sment:c or Orr OPMENT AGENCY OF THE HUNTINGT t �• • BEACH i '•: Yt) •'' airman it ♦ r r �, • ,. , pray. i � '.L, s '�; •� a R i! f, r t' .i y '.i '•1.