HomeMy WebLinkAboutCoast Community College District - 1989-08-16p r-. I [' ; r"' r.' ,
AND
AGREEMENT BY AND BETWEEN
THE COAST COMMUNITY COLLEGE DISTRICT
THE HUNTINGTON BEACH REDEVELOPMENT AGENCY
PERTAINING TO AMENDMENT NO. ONE TO �
THE OAKVIEW REDEVELOPMENT PLAN r
/ Z_
This Agreement is made and entered into t is 16th"day `
of , 1989 by and among the Coast Comrmun�
College District (hereinafter referred to as the "District"),
the Huntington Beach Redevelopment Agency (hereinafter referred
to as the'"Agency") and the City of Huntington Beach
(hereinafter referred to as the "City") .
RECITALS
INNIERE•AS, the Agency is a redevelopment agency existing
pursuant to the provisions of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et sea.)
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, kmendment No. One, contains provisions to increase
the limitation and to extend the term 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 33630(b) (hereafter referred to as "Added
Tax Increment"); and
WHEREAS, the Project Area is located within the District's
boundaries and is served by the District, and
WHEREAS, Fiscal Review Committee meetings have been held at
which representatives of the District and other affected taxing
entities have discussed the fiscal impact of Amendment No. One;
and
WHEREAS, meetings have been held by. representatives of the
District and representatives of the Agency to discuss the
fiscal impact of Amendment No. One on the District; and
l�
WHEREAS, pursuant to California Health and Safety Code
Section 33401, the Agency is authorized to compensate affected
taxing entities, including the District, for any amounts of
money which the Agency determines are appropriate to alleviate
any financial burden or detriment caused to the District by the
implementation of Amendment No. One; and
WHEREAS, Section 33445 of the Health and Safety Code
provides authorization. for the Agency, with the consent of the
City Council, to pay all or part of the value of the land and
the cost of the installation and construction of certain
buildings, facilities, structures, or other improvements owned
or to be owned by the District (hereinafter the "District
Facilities"), whether within or without the Project Area but
within the territorial jurisdiction of the Agency, upon a
determination by the City Council and the Agency that such
buildings, facilities, structures, or other improveme..nts are of
benefii to the Project Area or the iramediate neighborhood in
which the Project Area is located and that no other reasonable
neans of financing such buildings, facilities, structures, or
other improvements are available to the community (the
"community" being defined in the Community Redevelopment Law as
the City of Huntington Beach).
WHEREAS, the purpose of tris Agreement is to provide for
the appropriate payments to be made by the Agency to the
District in order to: (1) alleviate all significant financial
burden or detriment caused to the District by the tax
allocation provisions of A-mendment No. One; and (2) assist the
District by paying for all or part of the cost of certain
District Facilities.
WHEREAS, this Agreement alleviates financial burden or
detriment to the District resulting from Amendment No. one.
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:
Section 1. Definitions
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 Fifzy Thousand Dollars ($350,000)
6/9/89
4866n/2460/034 -2-
13
per fiscal year including the Property Tax Increment set forth
in Health and Safety Code Section 33334.2 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 Redevelopm-ert
Agency.
(c) "City" shall mean the City of Huntington Beach, a
municipal corporation.
t d) "Community Redevelopment Law" shall nean Part 1 of
Division 24 of the Health & Safety Code (commencing with
Section 33000).
(e) "District" shall mean the Coast Community College
District, and its successors.
(f) "District Share" shall mean that portion of the Added
Tax Increment allocated to and received by the Agency pursuant
to Health and Safety Code Section 33670(b) resulting from the
general purpose tax levy of the District.
(o) "Existing•Increment Flow" shall mean the full amount
of Property Tex 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 Nlo. One.
(h) "Fiscal Year" shall mean the period from July I to and
including the following June 30.
(i) "Ordinance" shall mean Ordinance No. oo (the
ordinance approving Amendment No. One).
(j) "Project Area" shall mean that area so designated in
Amendment No. One as approved by the Ordinance.
(k) "Property Tax Increment" shall mean the full amount of
tax revenues attributable to increases in assessed valuation
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)
from the Project Area.
(1) "Term" shall mean the period of time Amendment No. One
remains in effect.
6/9/89
4866n/2460/034 -3-
Section 2. Payment by Agency to "District
(a) Subject to the provisions of Section 3 of this
Agreement,"'for each Fiscal Year during the Term in which the
Agency receives an allocation and payment of Property Tax
! increment, the Agency shall deposit into a special fund of the
Agency pursuant to subdivision (c) of this Section 2, fifty
percent (50%) of the District Share. The District and the
! Agency agree that the base assessed valuation used in coMputing
such payments shall be established by the assessment roll for
the 1982-83 Fiscal Year.
(b) in addition to the foregoing, for each Fiscal
j du the Term in which the Agency receives an, allocation and
payment of Property Tax increment pursuant to Health and Safety'i
Code"Secticn 33670(b), the Agency further agrees to deposit
into a- special fund of the Agency pursuant to subdivision (c) i
of this Section 2, an amount equal to all of the Added ^ax i
increment allocated to and paid to the Agency for the
applicable Fiscal Year pursuant to subdivision (b) of Section
33670 which are attributable to: 1) increases in the rate of j
tax imposed for the benefit of the District which levy occurs
after the tax year in which the Ordinance becomes effecz-ive,
r' and 2) increases in the assessed 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
I Section 33670, which are, or otherwise would be, calculated
annually pursuant to subdivision (f) of Section 110.1 c= the
Revenue and Taxation Code. Such payments shall be made
pursuant to the District resolution adopted' in accordance with
Section 33676(b) of the Health and Safety Code electing to
receive payments pursuant to Sections 33676(a)(1) and _-
33676(a)(2).
L_
(c) Subject to Section 3 below, funds to be deposited by
the Agency on behalf of the District pursuant to this Agreement
shall be placed in a special fund of the Agency to be utilized
pursuant to the direction. of the District solely for the
purposes permitted under Section 4. The special fund shall be
held in a separate interest -bearing account on behalf of the
District, with interest accruing to said account. The Agency
undertakes no responsibility or duty with respect to the
selection of the interest -bearing account or for the maximizing
of interest. The Agency agrees to cooperate with the District
in selecting the interest -bearing account. The District
covenants that it shall expend revenues received by the
District pursuant to this Agreement only in strict conformity
with this Agreement.
(d) Payments pursuant to Sections 2 and 3 are subject to
the conditions and limitations set forth in parts (a) through
(i) of Section 6 of this Agreement.
6/9/89
-Vs i., 4866n/2460/034 -4-
k%A91)
Section 3. Alternate Pa .lent Procedure
As an alternative to the payment procedure set forth in
Section 2, the District may elect to have all payments that are
to be deposited by the Agency made in one of the following
manners:
a. to a nonprofit corporation to be formed by the
District; or
b. directly to the contractors and suppliers of the
District who are constructing capital improverents on District
Facilities as described in Section 4. Should the District
elect to have the payments received as described in this
Section 3(b), the Agency shall deposit the funds into a
separate interest -bearing account on behalf of the District
(with -interest accruing to said account), and the Agency shall
be entitled to withdraw from said fund all costs (including
personnel and 'administrative costs) in administering said
fund. The Agency undertakes no responsibility or duty with.
respect to the selection of interest -bearing accounts or from
the maximizing of interest. The Agency agrees to cooperate
with the District in selecting the interest -bearing account.
Section 4. District Expenditure of Revenues
All funds paid by the Agency pursuant to Section 2 or 3 of
this Agreement shall be expended on capital improvement
projects selected by the District. Upon written request by the
Agency as may be made so often as the Agency shall deem
appropriate, the District shall promptly provide without charge
a written statement accounting for the expenditure of funds,
together with any reports to state agencies pertaining to such
expenditures or the subject improvements.
Section S. Agency Bonds
It is agreed and acknowledged by the District 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 of such a pledge
of Added Tax Increment attributable to the general purpose tax
levy of the District shall be allowable as a pledge only either
M with the written consent of the District or (ii) the Agency
covenants not to utilize the amount due the District in
establishing the size of any such bond issue. The District
agrees that it shall promptly approve and execute such
documents as are necessary or convenient to implement this
Section 5 and facilitate the issuance of bonds (or other
indebtedness) by the Agency, so long as such documents are
consistent with this Section 5.
6/9/89
4866n/2460/034 -5-
section 6. Conditions
Payments to be deposited by the Agency on behalf of the
District are subject to the following conditions and
limitations:
(a) Agency's obligation under this Agreement to deposit
payments on behalf of the District is dee►ned to constitute ".an
indebtedness" within the meaning of Health and Safety Code
Sections 33670 and 33675.
(b) Agency shall deposit on behalf of the District amounts
due pursuant to this Agreement during each Fiscal Year within a
reasonable pericd after the Agency receives the Added Tax
Increment allotment from the County Auditor —Controller provided
that payments in relation to allotments received between July ,
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.
(d) The Agency shall not be obligated to defend any action
challenging the validity of any payments hereunder by Agency to
District; provided Agency shall cooperate in connection with
the District's defense thereof.
(e) Notwithstanding any other provisions of this Agreement
to the contrary, the Agency's obligation to maize payments to
the District under this Agreement in any single year shall
not: W exceed the amount of Added Tax Increment which would
have been received by the District 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 XIIIH of the
California Constitution of such entity; or (iii) be contrary to
any provision of the laws of the State of California.
(f ) No payments
Tax Increment to the
Sections 2 and 3 of
shall be nade by
District except
this Agreement.
the Agency from the Added
as expressly set forth in
6/9/89
4866n/2460/034 -s-
(g) The District shall in.dermify, 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 Sections 2
and 3 of this Agreement.
(h) Failure by the Agency to deposit payments on behalf of
the District into a special fund of the Agency pursuant to the
terms of this Agreement shall constitute a default hereunder.
M Payments made after the times described in Section
6(b) shall beer interest at the maximwm allowable rate
permitted by law from the date such payments are due and both
principal and interest thereon shall be deposited by Agency ir.
the special account of Agency..
Section 7. Covenant Not To Sue
The District 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, or
any of the findings or determinations made by Agency or City
Council of theCity in connection with the adoption of
Amendment No. One.
The District declares that it has conducted all such
investigation and study of matters pertaining to the subject
matter of this Agreement as it has deemed appropriate. The
District finds and determines that this Agreement alleviates
financial burden and detriment as presently exists to the
District resulting from Amendment No. One. The District agrees
and acknowledges that the provision of the continuing
effectiveness of such declaration is a material inducement to
the Agency to approve this Agreement, and that but for such
declaration the Agency would not approve and execute this
Agreement.
In the event and to the extent tax increments are withheld
from the Agency by reason of the pendency o! any such cause of
action, case, claim, count, action, or complaint filed by any
public or private person or entity, or otherwise withheld, the
District agrees not to claim interest on any such withheld
funds. The Agency's responsibility for making any
reimbursement otherwise required by this Agreement shall accrue
and be paid to the District when and if available at the
conclusion of litigation. The time for the Agency performance
hereunder shall be excused--for'the duration of such litigation.
6/9/89
4866n/2460/0-34 -7-
Section 8, Entire Agreement
This Agreement constitutes the entire agreement between the
Agency and District 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.
Section 9. Effective Date
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 evert the adoption of
kr:endment 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: 4-a
ATTEST:
C. M. Brahmbhatt
Director, Fiscal Affairs
Approved as to form:
Dated
COAST COMUNITY COLLEGE DISTRICT
By : Cam, .
Vice Chance or, Business Affairs
6/9/8 9
4866n/2460/034 -8-
ATTEST:
Agency Clerk
Approved as to Form:.:
Ag ncv_Legal Counsel
(G; neral Counsel
,ate 6 -►2 -�-y 2
Agency Special Counsel
HWTINGTON BEACH RED ' OP -r HNCY
B y: ..f�O ��c ry
Chairman
B%,:
Executive Director
6/9/89
4866n/2460/034 -9-
.s
�
,
y
V.
Y
• REQUEST FO?.*REDEVELOPM ENCY ACTION
1SY t TCY
UXIN
rpt,{tOYED 6 19M RH 89-57
June 19, 1989
Submitted to: Honorable Chalrm Redevelopment A/ge'ncy Members
Submitted by: Paul E. Cook, Chief Executive Officer �•t/
Prepared by: Douglas N. La Belle, Deputy City Ad minis tra tor/Econom I c DevelopmentP-L6
Subject: PAS' —THRIJ AGREEMENT — COAST COMMUNITY COLLEGE DISTRICT
Consistent with Council Policy? N Yes ( ) New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF LUUF
On June 5, 1989 the Redevelopment Agency approved Pass—Thru Agreements regarding
the_Oakvlew Amendment f2i O� v1[hh Iye_Taxing Entitles. Since that time staff has
reac cc agreement with the sixth and final AAgency: Coast Community College District.
RECOMMENDATION:
Approve and authorize the Agency Clerk to execute the attached Agreement between
the Agency and Coast Community College District.
ANALY. :
As a mitigation against detriment to Coast Community College District, the attached
Agreement requires the Agency to pass—thru 50% of the district's normal tax share for
the life of the plan for those amounts above the current cap of $350,000 per year.
FUNDING SOIL&CE:
Tax increment revenues.
ALTER A _Lyf ACTION:
Do not approve the Pass—Thru Agreement.
ATTACHMENTS:
Pass—Thru Agreement — Coast Community College District : 1
G
PEC/DLB/SVK:sar c.� •�
5217r ry
N
OK
�1 pp
T
s n
m
/IO/1/aE V
,$r. /,.�W , u, i,- , . ,
.y}..,K, �� i �,. �• "'.n�;'; •-qr_.J `.> nL."!���.�_�y^�1'•..SaE
�.zi``�5,,yyyy .[JS �• .•t ,��i ', u a`iL� .i..•'i �,'?�yrs',f$�•4,]� 7 � <y���'•,�a>j Y �
.yy'yZ�hs�r.Yt:i•. �'�._ M.- r :.':�`.SV-•.."'?raC�'w:�c�li.(� y!4r�.;�''�
r