HomeMy WebLinkAboutHUNTINGTON BEACH UNION HIGH SCHOOL DISTRICT - 1997-05-19RECORDING REQUESTED AND
WHEN REQUESTED RETURN TO:
Office oP- 7-hz C' /n'rxk:
City of Huntington Beach
P.O. Box 190, 2000 Main Street
Huntington Beach, CA 92648
Space above this line for Recorder's use only
Recorded in the County of Orange, California
Gary L. Granville, Clerk/Recorder
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19970449993 0811am 09/12/97
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AGREEMENT
BETWEEN
THE CITY OF HUNTINGTON BEACH
AND
HUNTINGTON BEACH UNION HIGH SCHOOL DISTRICT
This document is solely for the
official buzi.ness of the City
of Huntington,Beach, as contem—
plated under Grovarnruont Code
Sec. 8103 and should be recorded
tree of chnrrn.
Ta) Exempt -Government Agency
CITY OF HUNTINGTON BEACH
o nfe .Brockway, Cf,EC
Cify erk
eputy City Clerk
' s
•
AGREEMENT
THIS AGREEMENT ("the Agreement") is made and entered into as of the
13 day of May , 1997, by and between the CITY OF
HUNTINGTON BEACH ("CITY") and HUNTINGTON BEACH UNION HIGH
SCHOOL DISTRICT ("DEVELOPER").
RECITALS
CITY is a municipal corporation and charter city. CITY is authorized to
enter into this Agreement.
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DEVELOPER is a public entity, duly authorized to conduct business in the
State of California, and authorized to enter into this transaction pursuant to
California Education Code Sections 10910, 33050, 33051, 35160, 35160.1 and
39360.
DEVELOPER has entered into an option agreement for a long-term lease
with HOME DEPOT, INC. (HOME DEPOT), which owns and operates a HOME
DEPOT store on real property located at Golden West and Edinger in the City of
Huntington Beach. HOME DEPOT has operated such retail store for a number
of years. HOME DEPOT's operation has been successful, but it does not control
surrounding uses, and the current location does not afford HOME DEPOT
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sufficient square footage and sufficient frontage on a major highway. HOME
DEPOT has considered relocating the store to another city, but would prefer to
remain in the City of Huntington Beach. HOME DEPOT currently generates
significant sales tax revenues for the City of Huntington Beach, and those
revenues would be lost in the event of a relocation of the retail store to another
jurisdiction and city revenue; thus, services would suffer as a consequence.
DEVELOPER also has rights to a residential development on a portion of the
Development Site (as hereinafter defined), but because of this Agreement, is
willing to forego such rights in favor of commercial development, which will result
in sales tax revenue to the CITY and reduced expense associated with a
residential development.
at �� �� i •y • n-FtU
in reliance on the special skill and ability of DEVELOPER to provide
an operator of a successful retail store, has undertaken efforts to obtain
DEVELOPER's commercial lease with HOME DEPOT; and, thus a store in the
CITY, and desires to enter into this Agreement so that DEVELOPER will assist in
retaining the continued operation of the HOME DEPOT within the CITY.
HOME DEPOT has entered into an option agreement with DEVELOPER,
pursuant to which HOME DEPOT has the right to lease a parcel consisting of
approximately 10.5 acres of land, commonly known as Ocean View High
SchoolNVintersburg Site, and depicted in Exhibit "A" (Parcel "A'). CITY, by this
Agreement with the DEVELOPER, will acquire a reciprocal use interest of a
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minimum ten (10) tennis court facility contiguous to, and immediately east of
Parcel "A" and depicted in Exhibit "B" (Parcel "B"). The parcels of land in
Exhibits "A" and "B" are collectively referred to as the Development Site.
CITY and DEVELOPER have determined that the Development Site is of
sufficient size to accommodate a HOME DEPOT Retail Store larger than HOME
DEPOT's current operation and provides increased visibility and access, due to
the proximity of the site, to major arterials in the City of Huntington Beach.
DEVELOPER and CITY acknowledge that the Development Site, while
advantageous from the standpoint of size, visibility, and access, is difficult and
expensive to develop due to the cost of improvements and the ten (10) tennis
courts. Permits, agreements, and approvals are, or may be, required from
numerous public entities as a pre -condition to construction of a retail HOME
DEPOT on the Development Site and ten (10) tennis courts.
CITY and DEVELOPER acknowledge that construction of a HOME
DEPOT and tennis courts on the Development Site will require each Party to
devote a substantial amount of time, effort, and money to secure each of the
Parcels and all entitlements. Many of these expenditures will occur prior to the
actual lease transfer of the Development Site from the DEVELOPER to HOME
DEPOT, and prior to the realization of the financial benefits each Party can
expect once the commercial improvements are constructed. DEVELOPER
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acknowledges that CITY is required, prior to development of Parcel "A" by
DEVELOPER, to commit to assist in the construction of certain tennis court
improvements and creation of a reciprocal use agreement between the CITY and
DEVELOPER. CITY acknowledges that DEVELOPER, prior to development of
the Development Site, has committed to enter a long-term lease so that HOME
DEPOT will continue operations in the City of Huntington Beach rather than
relocate to another jurisdiction, and is committing to incur site development costs
substantially above those normally associated with the construction of a
commercial retail outlet. DEVELOPER will also forego its rights to a residential
development, which would yield a greater return on Parcel "A".
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The primary consideration to the CITY for this Agreement is retention of a
HOME DEPOT retail store that is one of the largest sales tax generators in
Huntington Beach, along with the addition of a new tennis court recreation
facility. The primary consideration to DEVELOPER for this Agreement is the
right to share in the sales taxes generated by a larger store on property owned
by the DEVELOPER, and which will be visible and accessible to a large volume
of potential customers and in close proximity to the majority of HOME DEPOT's
current customers, while still retaining ownership of the underlying fee interest in
Parcels "A" and "B".
e Congistengy
This Agreement is or will be consistent with the various elements of the
Huntington Beach General Plan (if and when amended) and all other applicable
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ordinances, plans, resolutions, and policies of the CITY. This Agreement is also
consistent with the purpose and intent of state and local laws in that it represents
comprehensive planning; provides certainty in the approval of subsequent
construction, subject to compliance with the conditions; reduces the economic
cost of development by providing assurance to DEVELOPER that it may use and
develop the property in accordance with the discretionary project approvals and
this Agreement; and provides assurance that CITY will retain vitally important
sales tax revenue and will secure recreational amenities for the community in the
form of ten (10) tennis courts.
151-MMONMEN
The City Council has determined that this Agreement is in the best
interest of the health, safety, and general welfare of the CITY, its residents, and
the public; and was entered into pursuant to, and represents the valid exercise
of, the CITY's police power; and has been approved in compliance with the
provisions of state and local law.
DEFINITIONS AND RULES OF INTERPRETATION
In addition to any words and terms defined elsewhere in this Agreement,
the following definitions shall apply to the words and terms used in this
Agreement.
A. "HOME DEPOT FACILITY" shall mean the Home Depot facility to
be constructed and operated on the Development Site.
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B. "CITY" shall mean the City of Huntington Beach.
C. "CITY PERMIT" shall mean any permit, license or approval to be
granted by the City of Huntington Beach.
D. "DEVELOPER" shall mean Huntington Beach Union High School
District.
E. "DEVELOPMENT SITE" shall mean Parcels "A" and "B" {as
described in Exhibits "A° and "B".
F. "DISCRETIONARY PROJECT APPROVAL" shall mean all
permits, approvals, licenses, or authorizations, including non -City permits and
certain City permits, which involve the exercise of discretion and are necessary
to implement the project. The project's specific approvals do not include building
and grading permits issued by City.
G. "FORCE MAJEURE" shall mean delays due to war; insurrection;
strikes; lock -outs; riots; floods; public enemy; epidemics; quarantine; restrictions;
freight, and embargoes; lack of transportation; governmental restrictions or
priority; litigation; unusually severe weather; inability to secure necessary labor,
materials, or tools; delays of any contract work by subcontractor supplier; acts of
another Party; acts, or the failure to act, of any public or governmental agency or
entity; or any other causes beyond the control, or without the fault of, the Party
claiming an extension of time to perform. An extension of time for any cause
shall only be for the period of the forced delay and shall commence to run from
the time of the commencement of the cause.
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H. "FUTURE GENERAL REGULATIONS" means those general
regulations adopted by the City after the effective date of this Agreement.
I. "GENERAL REGULATIONS" means those ordinances,
resolutions, policies, plans and guidelines of the City which are generally
applicable to the use of land and/or construction within the City and include
General Plan; zoning ordinance; water, and sewer ordinances; building
ordinances; traffic impact fee ordinances; building excise tax ordinances; and
similar ordinances, resolutions, policies, and plans.
J. "HAZARDOUS MATERIALS" means any flammable explosives,
radioactive materials, hazardous waste, toxic substances, or related materials,
and shall include, but not be limited to, substance defined as "hazardous
substance," "hazardous materials," or toxic substances in the Comprehensive
Environmental Response, Compensation and Liability Act (CERLA) of 1980 and
subsequently amended (circa), the Hazardous Materials Transportation Act, the
Resource Conservation Recovery Act (RCRA), substances defined as
"hazardous waste" in Section 25117 of the California Health and Safety Code;
"hazardous substances" as defined in Section 25316 of the California Health and
Safety Code; and those substances defined as "hazardous waste" in regulations
adopted, and publications promulgated, pursuant to any of the foregoing.
K. "NON -CITY PERMIT" shall mean any permit, approval, license, or
authorization to be granted by an entity other than the City of Huntington Beach,
and which is necessary for the construction of the project.
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L. "PARCEL A" shall mean the real property described in Exhibit "A".
M. "PARCEL B" shall mean the real property described in Exhibit "B".
N. "PROJECT" means all actions that are a prerequisite to
construction of a HOME DEPOT FACILITY and tennis court facility on the
Development Site, including the HOME DEPOT lease of Parcel "A" from
DEVELOPER, the execution by CITY and DEVELOPER of the reciprocal use
agreement for Parcel "B"; the approval of all City permits and non -City permits,
and the construction and operation of a HOME DEPOT FACILITY and tennis
courts on the Development Site, in accordance with the terms and conditions of
this Agreement and as specified in the Conceptual Site Plan (Exhibit'E") subject
only to modifications approved by the CITY.
A. Words of the masculine gender shall be deemed and construed as
correlative words of the feminine and neuter genders.
B. Unless the context shall otherwise indicate, words importing the
singular shall include the plural and vice versa. Words importing person shall
include firms, associations, corporations, including private or public entities, as
well as natural persons.
C. Whenever this Agreement requires either Party to make any
payment or perform, or refrain from performing, any act or obligation, each such
provision shall be construed as an express covenant to make the payment, to
perform, or not to perform, as the case may be, the act or obligation. The table
of contents and article and section headings of this Agreement are not treated as
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part of the Agreement and do not affect the meaning, terms, or conditions of this
Agreement.
D. The terms, "includes" and "including," and all context and forms of
those words, shall be deemed to also state "but not limited to."
E. "Assignment" and "assignee" shall include all context of
hypothecation, sales, conveyances, and transfers.
F. The term, "Mortgage," refers to the holder of a beneficial interest
under any mortgage, deed of trust, sale, leaseback, or other similar security
interest.
REPRESENTATIONS AND WARRANTIES
- .r ;-. �.. *�
CITY makes the following representations and warranties to
DEVELOPER:
A. CITY is a municipal corporation and charter city, duly organized
and existing under and by virtue of the Constitution and laws of the State of
California. By proper action of the City Council of the City of Huntington Beach,
the Mayor of the City has been duly authorized to execute this Agreement, and
the CITY is authorized to perform all of its obligations pursuant to this
Agreement. This Agreement is enforceable at law and in equity against the CITY
in accordance with its terms, unless enforcement is barred by bankruptcy
proceedings or other laws affecting creditors' rights generally. CITY represents
and warrants to DEVELOPER that it has the lawful power and authority to enter
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into the transactions, and carry out the obligations contemplated by this
Agreement.
B. The execution and performance of this Agreement by the CITY will
not conflict with, or result in any breach of, the terms, conditions, or provisions of
any agreement or instrument to which the CITY is a Party, or by which the CITY
is bound.
C. CITY has determined that the Project will further the public good
and is consistent with all CITY ordinances, plans, and policies, except to the
extent this Agreement contemplates an amendment to any ordinance, resolution,
plan, or policy.
D. The CITY permits and the non -CITY permits are, to the CITY's
knowledge, all of the permits, licenses, and approvals necessary to implement
the Project and permit the construction and operation of a HOME DEPOT and
tennis courts on the Development Site.
CITY:
DEVELOPER makes the following representations and warranties to
A. DEVELOPER is a public entity duly organized and existing under
and by virtue of the laws of the State of California, and is authorized and
qualified to do business in the State of California.
B. DEVELOPER has the lawful power and authority to enter into, and
perform the obligations required by this Agreement. By appropriate Board of
Education action, DEVELOPER has duly authorized and ratified this Agreement.
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The Superintendent has been authorized to execute this Agreement on behalf of
the School District. This Agreement is enforceable at law and in equity against
DEVELOPER in accordance with its terms, unless enforcement is barred by
bankruptcy proceedings or other laws affecting creditors' rights generally.
C. The execution and performance of this Agreement by
DEVELOPER will not conflict with, or result in a breach of any of the terms,
conditions, or provisions of any other agreement, instrument, or document to
which DEVELOPER is a Party, or by which DEVELOPER is bound.
IV.
CITY COMMITMENTS
A. CITY shall enter into the Reciprocal Use Agreement (Exhibit "C")
with DEVELOPER in respect to Parcel "B" for the joint use of the tennis courts.
CITY agrees to perform all of its obligations under the Reciprocal Use
Agreement.
B. CITY shall use its best efforts to assist in relocating HOME DEPOT
to Parcel "A".
C. CITY shall cooperate with DEVELOPER, and use its best efforts to
obtain all required CITY and non -CITY permits. CITY shall initiate and/or
promptly process all applications for CITY permits, including General Plan
amendments, zoning amendments, and amendments to the Land Use Plan of
the Local Coastal Program, that are necessary or required to implement the
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Project. CITY agrees to approve all CITY permits subject to its obligation to
conduct public hearings to comply with applicable law; the presentation of
substantial evidence in support of all required findings or decisions necessary to
approve the permit; and subject to the requirement that the application and
related documents fully comply with all applicable state and local laws, rules,
plans and policies, except to the extent that amendments to current plans are
required to implement the Project. CITY shall prepare staff reports, public
notices, and other documents relevant to CITY permits, in a timely manner at no
cost to DEVELOPER, other than the fees associated therewith.
D. CITY shall prepare and process an appropriate level of
environmental assessment ("EX) evaluating the potential impacts of
implementation of the Project. CITY shall retain a Consultant to expedite
preparation of the EA, interface with the CITY departments and keep
DEVELOPER informed as to the status and progress of the EA. DEVELOPER,
or an Agent on the DEVELOPER's behalf, shall pay all costs of the EA related to
the analysis of the environmental impacts of constructing on and off -site
improvements.
E. CITY shall notify DEVELOPER of the preparation of all documents
prepared by the CITY or its consultants relative to bids, cost estimates, and
scopes of work. CITY shall provide DEVELOPER with copies of all such
documents; will allow DEVELOPER to review and comment on the documents
prior to distribution; and will cooperate with DEVELOPER to minimize the costs
incurred in performing the tasks identified herein and other matters related to
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implementation of the Project. The CITY permits and non -CITY permits for
which documents, reports, or studies are, or may be, required and the estimated
costs of preparing these documents, reports, or studies are identified in Exhibit
"D". DEVELOPER, or an Agent on the DEVELOPER's behalf, shall pay any and
all costs or expenses estimated for the documents, reports, or studies identified
in Exhibit "D".
- •� 1_11150llll 11M 111063.
CITY shall pay a sum not to exceed $385,000 toward the construction of
the tennis facility, in the form of "progress" payments commonly used in
construction loan transactions, all as more particularly set forth in Exhibit "H".
DEVELOPER, or an Agent on the DEVELOPER's behalf, shall pay all
development -related fees and charges to fund all construction, including the
tennis facility on Parcel "B". The within CITY and DEVELOPER payments shall
commence within thirty (30) days after satisfaction of the following conditions,
one or more of which may be waived by CITY and/or DEVELOPER:
A. CITY and DEVELOPER have executed a Reciprocal Use
Agreement as to Parcel "B".
B. All Discretionary Project approvals, such as Conditional Use
Permits, General Plan Amendments, or zone changes, have been granted,
subject only to conditions and requirements approved by DEVELOPER; and the
appeal period with respect to each permit has expired, and no appeal has been
filed.
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C. Soils, engineering, and related reports Have been approved by
CITY and DEVELOPER, or CITY and DEVELOPER have failed to object to the
reports within the period specified in this Agreement.
D. DEVELOPER has complied with all of its pre -construction
obligations, and DEVELOPER's representations and warranties remain true and
correct as of the date of conveyance.
E. The tennis facility has been designed with bid plans and
specifications which achieve the general parameters of the Conceptual Site Plan
attached hereto as Exhibit "E," and contract awarded with appropriate completion
bonds.
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A. CITY shall promptly review, process, and approve all building
permit applications submitted by DEVELOPER or HOME DEPOT in conjunction
with implementation of the Project. CITY shall promptly conduct on -site
inspections, when requested by DEVELOPER or HOME DEPOT or its
representatives, during the course of construction of any improvement on the
Development Site. CITY shall promptly issue an appropriate Certificate of
Occupancy when construction of improvements has been completed in
accordance with the provisions of this Agreement and all applicable ordinances,
policies, and plans.
B. Upon execution of this Agreement and upon completion of the
entitlement process, DEVELOPER shall have a vested right to implement the
Project, subject to DEVELOPER's compliance with the construction schedule
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(Section 6.02). CITY shall not be permitted to apply future General Regulations
to the Project without DEVELOPER's express written consent. Except as
expressly provided in this Agreement, no initiative, measure, moratorium,
.referendum, ordinance, statute, regulations, policy, or other provision of law
which in any way interferes with, impedes, or restricts the development or use of
the Development Site as permitted by this Agreement, shall be applied to the
Development Site.
V.
DEVELOPER COMMITMENTS
A. DEVELOPER, or an Agent on the DEVELOPER's behalf, shall use
its best efforts to promptly file for, and diligently pursue to approval, all required
CITY permits and non -CITY permits. DEVELOPER, or an Agent on the
DEVELOPER's behalf, shall pay all costs associated with preparation of
documents, reports, and studies as specified in Exhibit' D".
B. DEVELOPER, or an Agent on the DEVELOPER's behalf , shall
cooperate with CITY in negotiations with entities who own utility facilities above
and beneath the surface of the Development Site. DEVELOPER, or an Agent on
the DEVELOPER's behalf, shall comply with all reasonable requests of those
entities whose facilities must be relocated prior to construction, including the
provision of financial security to guarantee the performance of all tasks
associated with relocation of the facility and indemnification of the entity during
the course of relocation.
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C. DEVELOPER, or an Agent on the DEVELOPER's behalf, shall
prepare at its sole cost and expense, all conceptual plans and designs
describing proposed site development for submission to CITY and all other
public or private entities whose permission is required to implement the Project.
DEVELOPER, or an Agent on the DEVELOPER's behalf shall cooperate in the
preparation of any environmental document and pay the cost of preparing any
environmental document directly related to the development of the HOME
DEPOT FACILITY and tennis courts.
D. Prior to the commencement of construction, DEVELOPER, or an
Agent on the DEVELOPER's behalf, shall perform soils, geologic, and other tests
necessary to determine if the soil, geologic, and other conditions of the
Development Site are suitable for the construction of the Project. The test
results shall be submitted to the CITY within five (5) days after receipt by
DEVELOPER, or an Agent on the DEVELOPER's behalf. The Development Site
shall be considered suitable for construction of all necessary improvements
unless CITY or DEVELOPER, or an Agent on the DEVELOPER's behalf, notifies
the other, in writing and within thirty (30) days after receipt of the test results, that
the Development Site is not physically suited to the implementation of the
Project.
E. DEVELOPER, or an Agent on the DEVELOPER's behalf, shall
diligently seek commitments for financing the cost of the Project. DEVELOPER,
or an Agent on the DEVELOPER's behalf, shall have sole and absolute
discretion with regard to the amount, terms, and source of financing.
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DEVELOPER, or an Agent on the DEVELOPER's behalf, shall advise CITY on a
regular basis of its progress in securing requisite financing.
�►— •1 — ALIAWMItLe a tl �11i1 11`1
A. DEVELOPER, or an AGENT on the DEVELOPER's behalf, shall be
responsible for the entire cost of designing and constructing all on -site and off -
site improvements normally associated with a retail store and tennis courts,
including water lines, sewer lines, electrical lines, gas lines, telephone lines,
internal access roads, storage facilities, loading and unloading facilities, and
parking facilities.
B. DEVELOPER, or an AGENT on the DEVELOPER's behalf, shall
commence and complete construction of the Project in compliance with this
Agreement and shall cause commencement of operation as a HOME DEPOT
and tennis courts within a reasonable time after CITY issues a Certificate of
Occupancy. Except as otherwise provided herein, DEVELOPER shall use its
best efforts to compel HOME DEPOT to continue to use the Development Site
as a HOME DEPOT FACILITY, and DEVELOPER shall provide reciprocal use of
the tennis courts for the term of not less than 20 years, pursuant to this
Agreement, subject to force majeure.
am
DEVELOPMENT OF THE SITE
The Project shall be developed in compliance with the Conceptual Site
Plan (Exhibit "E"), which has been approved by CITY; the scope of work
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approved by CITY, all subject to modifications submitted by DEVELOPER and
approved, in writing, by CITY and DEVELOPER. CITY's written approval of any
modification shall not be unreasonably withheld.
A. DEVELOPER, or an Agent on DEVELOPER's behalf, has
submitted applications for all permits necessary to construct the Project.
DEVELOPER, or an Agent on DEVELOPER's behalf, shall commence
construction within 90 days after issuance of required building or grading
permits, subject to force majeure, and thereafter diligently prosecute to
completion the construction of the Project. DEVELOPER, or an Agent on
DEVELOPER's behalf, shall strictly adhere to the construction schedule subject
to delay and extension, due to force majeure, or with written approval by CITY,
which shall not be unreasonably withheld. DEVELOPER, or an Agent on
DEVELOPER's behalf, shall furnish CITY with periodic status reports on the
progress of construction, when requested by the CITY, but no more frequently
than once a calendar month. CITY shall act upon all applications submitted by
DEVELOPER, or an Agent on DEVELOPER's behalf, with respect to the
Development Site within 30 days of submission.
- M t
For the purposes of assuring compliance with this Agreement and
conducting required inspections of all construction in progress, CITY shall have
the right of access to the site without charge or fees during normal construction
hours.
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VII.
SPECIAL PROVISIONS
This Agreement and the obligations of the parties shall be effective as of
the date of execution.
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The term of this Agreement shall begin on the effective date and continue
for twenty (20) years after completion of improvements and issuance of a
Certificate of Occupancy, unless otherwise terminated or modified.
A. Except as otherwise provided in this Agreement, DEVELOPER
may not sell, transfer, lease, or assign all, or a portion of, DEVELOPER's interest
in the Development Site, or improvements, without the express written consent
of CITY, and CITY shall not unreasonably withhold its consent. In the event
HOME DEPOT ceases operations, or in the event of any sale, transfer, lease, or
assignment of the Development Site from DEVELOPER to a successor within
twenty (20) years from the date on which DEVELOPER's LESSEE commences
operation as a HOME DEPOT FACILITY on the Development Site without the
consent of the CITY, CITY and DEVELOPER agree to terminate all revenue
sharing obligations reflected herein, all as more particularly set forth in Exhibits
"F" and "G".
B. In no event shall the CITY be obligated to approve any assignment
which could result in use of the Development Site for purposes other than those
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permitted by this Agreement, nor to defeat or impair the reasonable expectations
of the CITY.
KIM ., 1• i
Either Party may, at any time, deliver written notice to the other requesting
an estoppel certificate stating:
A. The Agreement is in full force and effect and is a binding obligation
of the Parties.
B. The Agreement has not been amended or modified, whether orally
or in writing, or, if so amended, identifying the amendments.
C. No default of performance of the requesting Party's obligations
under the Agreement exists, or, if a default does exist, the nature and amount of
any default.
D. The Party receiving a request for an estoppel certificate shall
provide a signed certificate to the requesting Party within thirty (30) days after
receipt of the request.
Section 7.05: Minimum Gross Sales
A. CITY assumes, and DEVELOPER concurs, that DEVELOPER's
development on the site will generate an annual net increase in sales tax
revenue in excess of $385,000.00 as defined in Exhibit "F" and by the current
sales tax ordinance. DEVELOPER shall use its best efforts to generate
increases in sales tax revenue through execution of a lease with HOME DEPOT.
In the event the there is an annual net increase in sales tax revenue of at least
$$385,000.00 during the next 20 years of the operation of the HOME DEPOT
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FACILITY, DEVELOPER shall receive from CITY some of the costs actually
incurred by DEVELOPER, or an Agent on the DEVELOPER's behalf, in
undertaking obligations and performing the tasks identified herein, pursuant to
the methodology shown in Exhibit "F", attached hereto and incorporated herein
by this reference.
This Agreement may be amended from time to time by the written mutual
consent of the parties or their successors in interest.
Vlll.
DEFAULTS, REMEDIES AND TERMINATION
The failure by either Party to perform any material term or provision of this
Agreement shall constitute a default, when the failure of performance is not
cured thirty (30) days following written notice of default, served by the non -
defaulting Party; or, if such default cannot, with the exercise of due diligence, be
cured within 30 days, when the defaulting Party has not commenced to cure
such default within 30 days following written notice of default, or has not
diligently proceeded to cure such default. In no event shall any legal action to
enforce this Agreement be instituted against the Party in default, unless at least
thirty (30) days after notice of default is given.
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Any failure or delay by either Party in asserting any of its right or remedies
as to any breach or default shall not operate as a waiver of the non -defaulting
Party's remedies.
Except as otherwise provided in this Agreement, the parties agree that the
only remedies for a material breach of this Agreement shall be an action for
specific performance or termination of the Agreement. The parties agree and
acknowledge that it would be difficult, if not impossible, to ascertain that amount
of damages sustained by the non -breaching Party in the event of a breach by
either Party. The Parties also acknowledge and agree that, in such event, the
non -defaulting Party would not have an adequate remedy at law.
that:
DEVELOPER shall have the right to terminate this Agreement in the event
A. DEVELOPER falls to obtain all Discretionary Project Approvals on
or before one year from the execution hereof, subject only to conditions and
requirements approved by DEVELOPER; or
B. DEVELOPER or CITY disapproves the engineering soil or geologic
conditions of the Development Site as provided in Section 5.01(D); or
C. DEVELOPER fails to obtain financing for the cost of the Project as
provided in 5.01(E); or
22
ADL Jn:Agree:HBUHSD/5/7197
0
0
D. DEVELOPER gives written notice of termination to CITY in
DEVELOPER's sole and absolute discretion. -
Termination shall be effective on thirty (30) days' written notice.
RPM. i u - 1 •
CITY may terminate this Agreement in the event that:
A. DEVELOPER fails to obtain all discretionary Project approvals on
or before one year from execution hereof;
B. DEVELOPER fails to construct the required improvements in
accordance with the construction schedule, subject to the provisions of this
Agreement relating to force majeure;
C. DEVELOPER assigns this Agreement in contravention of the
provisions of Section 7.03; or
D. DEVELOPER fails to enter into the Reciprocal Use Agreement
when obligated to do so pursuant to the provisions of this Agreement.
A. Fails to commence construction of the HOME DEPOT
improvements, as required by this Agreement, for a period of three (3)
consecutive months after written notice from the CITY; or
B. Without good cause, abandons or substantially suspends
construction of the improvements for a period of three (3) consecutive months
after written notice from CITY to commence construction; or
23
ADLJn:Agree:HBUHSDI517197
C. Fails to otherwise construct the tennis facility.
ARTICLE IX.
TIMING OF TAX SHARING PROVISIONS
All tax sharing provisions herein shall be subject to the terms and
conditions reflected In Exhibit "G", attached hereto and incorporated herein by
this reference as though fully set forth.
GENERAL PROVISIONS
Section 9..0-2: Notic-es.- eman s god_Comm n� itations_0etweea
the Parties
All notices, consents, and approvals required or permitted under this
Agreement, must be in writing and shall be sent by registered or certified mail,
postage prepaid, return receipt requested, to the CITY or the DEVELOPER at
the addresses set forth below or hand delivered at such addresses.
City of Huntington Beach
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92659-1768
Attn: City Administrator
De o : Huntington Beach Union High School District
10251 Yorktown Avenue
Huntington Beach, CA 92646
Attn: Superintendent
Such written notices, consents, and approvals may be sent in the same manner
to such other addresses as either Party may from time to time designate by mail.
Notices, consents, and approvals shall not be effective until five (5) days after
mailing.
24
ADLjn:A9ree:H13UHS015l7/97
No member, official, or employee of the CITY shall have any personal
interest, direct or indirect, in this Agreement, nor shall any such member, official,
or employee participate in any decision relating to this Agreement which affects
their personal interests or the interests of any corporation, partnership, or
association in which they are directly or indirectly interested.
Directors
No member, official, or employee of the CITY shall be personally liable to
the DEVELOPER, in the event of any default or breach by the CITY, for any
amount which may become due to the DEVELOPER or on any obligations under
the terms of this Agreement.
The CITY has the right, upon not less than seventy-two (72) hours' notice
and at reasonable times, to inspect the books and records of the DEVELOPER
pertaining to the Development Site and the Project, as pertinent to the purposes
of this Agreement. The DEVELOPER also has the right, upon not less than
seventy-two (72) hours' notice and at reasonable times, to inspect the books and
records of the CITY pertaining to the Development Site and the Project pertinent
to the purposes of this Agreement.
Segfion 9.06: ExgcUtion_ in_CountgrpREta
25
ADL.jn:Agree:MBUHS D/5/7/97
• 0
This Agreement may be executed in several counterparts, each of which
shall be an original, and all of which shall constitute but one and the same
instrument.
This Agreement constitutes the sole and exclusive agreement between
the Parties, and supersedes all negotiations or previous agreements between
the Parties with respect to all or any part of the subject matter of this Agreement.
All waivers of the provisions of this Agreement must be. in writing and
signed by the appropriate authorities of the CITY and the DEVELOPER. All
amendments to this Agreement must be in writing and signed by the appropriate
authorities of the CITY and the DEVELOPER.
Section 9.09: Severability/Defense and -Indemnity
In the event any provision of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision of this Agreement.
DEVELOPER agrees to defend and indemnify CITY with counsel of its choice in
the event of any legal challenge regarding this Agreement or, in the alternative,
to terminate this Agreement, in the sole discretion of DEVELOPER, so long as
any and all losses, claims, or damages resulting from such challenge and/or
termination are paid by DEVELOPER.
26
ADL Jn:Ag ree.HBUHSD/5/7197
This Agreement shall be construed and governed in accordance with the
laws of the State of California.
Section 9.11: Time ofthe Essence
CITY and DEVELOPER expressly agree and acknowledge that time is of
the essence in the performance of this Agreement.
Section 9.12: Validity
This Agreement shall be of no force or effect and shall not bind the CITY
to any of its terms, unless and until it has been approved by the City Council of
the City of Huntington Beach.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed by and through their authorized offices the day, month and year
27
ADL:jn:Agree:HBUHSD1517197
0
first above written.
DEVELOPER:
HUNTINGTON BEACH UNION HIGH
SCHOOL DISTRICT
By: a"Li4-�
RONALD G. BENNETT
Its Superintendent
Bv:
11rint name
ITS: (circle one) Secretary/Chief Financial
Officer/Asst. Secretary - Treasurer
Board President
APPROVED AS TO FORM:
District Counsel
REVIEWED AND APPROVED:
� 7"/ A E � 4::: S �
City Admi istrator
28
ADL:jn:Agree:HBUHSD/517/97
CITY OF HUNTINGTON BEACH, A
municipal corporation of the State of
California
ATTEST:
- City Clerk
APPROVED AS TO FORM:
6 �/5�7City Attorney (�_ _ 5,7
INITIATED AND APPROVED:
NJAA /I &A
Dire for of Economi Development
CALIFORNIA ALL:PURPOSE ACKNOWLEDGMENT
No. 5907
State of California
County of Orange
On June 10, 1997
DATE
before me, Carole A. Thomas
NAME- TITLE OF OFFICER • E.G., "JANE DOE, NOTARY PUBLIC"
personally appeared Ronald G. Bennett
NAME(S) OF SiGNER(SI
I� personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and ac-
knowledged to me that he/she/they executed
the same in his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s),
CAW! E A. THOMAS or the entityupon behalf of which the
a a COMM.,:-1D43521 z p
z =��=I NotoryPub:;c—COIROMia person(s) acted, executed the instrument.
OR.' :G COUNTY
=x,:: es DEC 29. 1998
WITNESS my hand and official seal.
SIGNATURE OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
❑ INDIVIDUAL
CXI CORPORATE OFFICER
_Sup_erintendent of Schools
TITLEIS1
❑ PARTNER(S) !—i LIMITED
n GENERAL
❑ ATTORNEY -IN -FACT
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
❑ OTHER:
SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR EN71TY(1ES)
Huntington Beach Union High School District
DESCRIPTION OF ATTACHED DOCUMENT
Revenue Sharing Agreement -
Reciprocal Use Agreements
TITLE. OR TYPE OF DOCUMENT
Tennis Courts at Ocean View High S
50
NUMBER OF PAGES
13 May, 1997
DATE OF DOCUMENT
SIGNER(S) OTHER THAN NAMED ABOVE
01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmel Ave., P.O. Box 7184 • Canoga Park. CA 91309-7184
CALIFORNIA ALL-PURPOR ACKNOWLEDGMENT
State of -_- -_
County of
On r- 1 tr
�C.h.f�vu-11�L✓ � [ �!9 � before me, -- - r�. !V ,P�Sar Ncm..,,,r{
Date n Narre anc Title of Off.cer !e.g.. -Jane Doe. Notary P
personally appeared 6k_ --
Name(s) or Signer(s)
N tpersonally known to me — to be the personN
whose nameN(Wal:e subscribed to the within instrument
and acknowledged to me that 644GAbGY executed the
same in(9Aw f#tteir authorized capacity(tesj, and that by
i #�er4h&r signaturet&) on the instrument the person(S);
�RAA. or the entity upon behalf of which the person( acted,
CO1Mnhan01068m6� executed the instrument.
S NaklY PAW — C400MD
am Cowift,
!MVC40ffM Expkwits 23,190 WITNESS my hand and official seal.
r
Signature of Notary Public
O TONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: _,� ` �&W Lf 64&,-e yt —/49 a4 leu
Document Date: 6/Y3l-1-7 Number of Pages:
MOM
c2c�
Signer(s) Other Than
Named Above: _L w-e4 6. 6a_- e /
"7��LGtu-t..P 1 G�-�C�' � �L7L� G • _ /O
Capacity(ies) Claimed by Signer(s)
Signer's Name: _ & A
Individual
Corporate Officer
Title(s):
Partner — ❑ Limited ❑ General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other: _?�i �,
Signer Is Representing:
I�V,��r-SIV
RIGHT THUMBPRINT
OF SIGNER
Signer's Name:
G
Individual
Corporate Officer
Title(s):
Partner — ❑ Limited ❑ General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
RIGHT THUMBPRINT
OF SIGNER
0 1995 National Notary Association • 3236 Ramr-et Ave. P.O. Box 7164 - Carioga Part. CA 31309.7184 prod. No. 5907 Recrder. Call TO -Free 1-600-676-6627
CALIFORNIA ALL-PURP09 ACKNOWLEDGMENT
State of
Countyof
On l O before me, �&U v6-A• �I�Sw`� %V+ �� �LCI
Date CON
ane Ttle of Off cer 'a 9 , `Jae Doe, Notary Pu4e
personally appeared Ceti ks k C 2" ae1,JA-f
Namara) of Signer-W
Personally known to me — OR — — s o e to be the person(`&)
whose name Is subscribed to the within instrument
and acknowledged to me that s e executed the
same in /th& authorized capacityfies}, and that by
11—f9their signature(&) on the instrument the person(s),
or the entity upon behalf of which the person(4 acted,
LAURAA. NERLSM executed the instrument.
Corrrni dm / 1066265
sae cowvy
My cortun EVbw JU 23. 1"9
WITNESS mv-hand and official seal.
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date: <11 W,
Signer(s) Other Than Named Above: kokg,& G,
Capacity(ies) Claimed by Signer(s)
Signer's Name: &,,VAP L Signer's Name:
C�
Individual
Corporate Officer
Titie(s):
Partner — E Limited
Attorney -in -Fact
Trustee
r' General
Guardian or-Conservat r
Other: Tcp of thI_ rib -ere
I
Signer Is Representing:
Number of Pages: ;7-0
ASc�
Individual
Corporate Officer
Title(s):
Partner -- = Limited = General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing
RIGHT THUMBPRINT
OF SIGNER
C 1995 Nat onal Notary Assocfat on • 8236 Rem^-iet Ave.. P.O. Box 7164.Oaroga Parc. CA 91303.7184 Prod. No. 59C7 Reorder: Ca I Toll -Free '-800-876-6827
L
• 0
EYMIT "A"
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MGMIT "C"
RECIPROCAL USE AGREEMENT
•
RECIPROCAL USE AGREEMENT BETWEEN THE CITY OF IIU`TINGTON BEACH
AND THE UUNTINGTON BEACH UNION HIGH SCHOOL DISTRICT FOR USE OF
TENNIS COURTS AT OCEAN VIEW HIGH SCHOOL
This agreement is made and entered into this &"- day of NW,1997, by
and between the CITY OF HUNTrNGTON BEACH, a California municipal corporation,
(hereinafter referred to as CITY), and the HUNTINGTON BEACH UNION HIGH SCHOOL
DISTRICT, (hereinafter referred to as DISTRICT).
RECITALS
WHEREAS, DISTRICT is developing at least ten (10) tennis courts at Ocean View High
School (hereinafter referred to as "School"), 17071 Gothard Avenue, Huntington Beach, CA in
conjunction with an agreement regarding the Home Depot Project and the reconfiguration of
playing fields at School; and
CITY and DISTRICT have entered into an Agreement regarding the Home Depot
Project; and
It is the intention of DISTRICT and CITY to share joint use of the tennis courts for both
school and public purposes; and
Educatro)l Code Section 10900, et seq. authorizes cities and school districts to enter into
agreements that %will contribute to the attain7.ent of general educational ar.d recreational
objectives for children and adults in Cakforr.:a.
?\'O%', TI-1EREFORE, it is agreed b, ar.d 'between CITY and DISTRICT as follows:
j-., k"agrc }:bhsChu?-': 1 2.97
1-1
i. IMPROVEMENTS. DISTRICT shall cause to be constructed pursuant to its
agreement with CITY, at least ten (10) tennis courts at School. DISTRICT hereby agrees to
allow use of School's tennis courts by CITY for public recreation and/or instruction pursuant to
the terms and conditions of this Agreement. DISTRICT shall own the improvements.
2. TERM. This Agreement shall remain in force for twenty (20) years and may
be extended annually thereafter unless either party elects to terminate same.
3. HOURS OF USE. First priority for the use of the tennis courts shall be for
School related uses. DISTRICT shall have exclusive use of the tennis courts during all scheduled
school hours, after school practice hours, OF sanctioned tennis leagues or tournaments, and at
such other times as the courts are reserved for official high school activities. CITY shall
generally have use of the tennis courts before and after scheduled school uses, weekends, and
during school summer vacation. Each year prior to September, School and CITY shall appoint a
designated representative to meet to develop an annual use schedule to accommodate
SchooVDISTRICT needs and CITY park and recreation needs pursuant to the exclusive use
hours stated above. The annual time allocation shall be approved by the Assistant Superintendent
of DISTRICT's Business Services and the Director of Community Services for CITY.
4. MAINTENANCE. DISTRICT agrees to provide at no cost to CITY the
routine maintenance for the upkeep of the tennis courts to insure that the courts are in a condition
for use by DISTRICT and CITY. DISTRICT and CITY agree to share equally the cost of major
maintenance, including resurfacing, replacement or nets and repair or replacement of light
fixtures. If CITY chooses to operate tennis lessons, leagues or tournaments whereby CITY
charges a fee for such events, CITY shall provide DISTRICT a portion of those fees not to
jmp 1 'agz�:h6hs. hd2iSr 1: 97
0 0
S. CITY HOLD HARMLESS. CITY hereby agrees to protect, defend, indemnify
and hold and save harmless DISTRICT, its Governing Board, officers, and employees against any
and all liability, claims, judgments, costs and demands for personal injury or property damage,
arising directly or indirectly out of the obligations or operations herein undertaken by CITY,
including those arising from the passive concurrent negligence of DISTRICT, but save and except
those which arise out of the active concurrent negligence, sole negligence, or the sole willful
misconduct of DISTRICT. CITY will conduct all defense at its sole cost and expense.
DISTRICT shall be reimbursed by CITY for all costs or attorney fees incurred by DISTRICT in
enforcing this obligation.
6. DISTRICT HOLD HARMLESS. DISTRICT hereby agrees to protect, defend,
indemnify, and hold and save harmless CITY, its officers and employees against any and all
liability, claims, judgments, costs and demands for personal injury or property damage arising
directly or indirectly out of the obligations or operations herein undertaken by DISTRICT,
including those arising from the passive concurrent negligence of CITY, but save and except
those which arise out of the active concurrent negligence, sole negligence, or the sole willful
misconduct of CITY. DISTRICT will conduct all defense at its sole cost and expense. CITY
shall be reimbursed by DISTRICT for all costs or attorney fees incurred by CITY in enforcing this
obligation.
7. INSURAINCE Both parties agree to carry liability insurance for personal
injury and property damage in the amount of $1,000,000 naming the other party as an additional
insured or providing evidence of self-insurance.
jmp•'k,'agrer.7ibhsdhd2: 5:12ri7
8. NOTICES. All notices given hereunder shall be effective when personally
delivered or if mailed within forty-eight hours of the deposit of such notice in the U.S. Mail,
prepaid and certified with return receipt requested and addressed to DISTRICT or to CITY at the
respective addresses shown below:
TO CITY
Director of Community Services
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
TO DISTRICT
Huntington Beach Union High School
10271 Yorktown Avenue
Huntington Beach, CA 92646
Attn: Asst. Superintendent, Business
Services
8. ATTORNEY'S FEES. In the event suit is brought by either party to enforce
the terms and provisions of this Agreement or to secure the performance hereof, each party shall
bear its own attorney's fees_
9. MODIFICATIONS. This Agreement may be modified only by a written
amendment signed by CITY and DISTRICT.
4
jmp$da gree,1hhsdhd215112i97
i
10. ENTIRETY. The foregoing sets forth the entire Agreement between the parties.
11',41 WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized officers the day, month and year first above written.
HUNTINGTON BEACH UNION CITY OF HUNTINGTON BEACH, a
HIGH SCHOOL municipal corporation of the State of
California
By:
President, Board of Trustees
By:
Superintendent
APPROVED AS TO FORM:
School Legal Counsel
REVIEWED AND APPROVED
City Administrator
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
S-� City Attorney y7
A ? s�, �s
ItiMATEDja APPROVED:
ctor, Cpmmunrty services
5
jmp Vagce:hbhsdhd2i5i 12;97
il:
LIST OF DOCUMENTS REPORTS AND STUDIES
1. Environmental Impact Report No. 96-3, and all associated reports and studies.
•
CONCEPTUAL SITE PLAN
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AIRWAY 0.1 - COatvi1TT19a1IFia101ariIE1
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SUMMARY - -
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15 .�.11:
ANNUAL SALES TAX SHARING METHODOLOGY
' BZSIBIT ��!
CITY Shall pay to DEVELDPER a portion or the Annual Net
Increase in Sales Tax ("ANIST") computed as follows:
ANIST shall be equal to the sales tax generated by the
Home Depot facility plus the sales taxes generated by uses at the
former Home Depot facility located at 6912 Edinger avenue,
Huntington Beach, consisting of Assessor's Parcel Nos. 146-463-18
and 146-463-25 less a Base ]amount of $385,000.
A. Should the ANIST be $305, 00D- or lose in any one
calendar year, there shall be an annual payment to DEVELOPER or
8.54 of the ANIST minus a City Priority Share of $50,000.
EXAME CALCULATIONS
Example At— -
XaMPle--A2-.
ANIST
$ 51,000
$100,000
Calculated Annual Payment*
42335
8,500
Example Al
Example A2
ANIST
$ 51,000
$ 100,000
Less City Priority Share
$ 50,000
$ 50,000
Available ANIST**
1,000.
50,000
Annual Payment to
DEVELOPER***
1,000
8,500
* ANIST multiplied by 8.5 equals Calculated Annual Payment
** ANIST Less City Priority Share equals the Available ANIST
*** Annual Payment to DEVELOPER shall be Calculated Annual Payment
or the Available ANIST, whichever is less
rtt br9�r+e+WacuraalMYa+[ MiEt. dt� I 0126M
' �3•, 8� Should the ANIST be more than $305,000 in any
one calendar year, there shall be an annual payment to DEVELOPER of
20% of ANIST minus $25,000 calculated as follows:
EXAMPLE CALCULATIONS
Example B1
Example B2
ANIST
S 306,000
$ 400,000
Calculated Annual
Payment*
61,200
80,000
Adjusted Calculated
Annual Payment*
36,200
55,000
Example BI
Example B2
AMIST
S 306,000 -
$ 400,000
Less City Priority
Share
50,000
50,000
Available ANIST***
256,000
350,000.
Annual Payment to
bEVXWPER****
36,200
55,000
* ANIST multiplied by 20% equals Calculated Annual Payment
** Adjusted Calculated Annual Payment shall be the Calculated
.%nnual Payment less $25,00a
*#i Avail -able ANIST shall be the ANIST less City Priority Share of
$50,000
**+* The Annual Payment to DEVELOPER shall be the Adjusted
Calculated Annual Payment or the Available ANIST whichever is
less
nas4�n.s uu�+sIITER.axr 2 OVUM
lixi ,I Tifidim
TIlyiiNG OF TAX SHARING PROVISIONS
I. ,
LOW _ MIM M 9 M e
A. City's Obligations Regardjna Sales Tax.Reygnugs. Beginning on
the first quarter of the calendar year after all conditions precedent and
concurrent to City's obligations hereunder have been satisfied and so long as
Developer is not in default under this Agreement, and after City has received
proof of Sales Taxes owed and paid by users on the location defined in Exhibit
"F", City shall pay the calculated Sales Tax Revenue in an amount as calculated
in Exhibit "F". Sales Tax shall be payable quarterly forty-five days after the end
of each calendar quarter in which City has actually received such Excess Sales
Tax Increment as confirmed by City, and shall be adjusted at City's Fiscal Year
end.
1. Calculation of 5alera Tax. City shall pay Sales Tax,
calculations of which shall be as set forth in Exhibit "F".
B. Principles-3egarding,Q01gulation and Payment QfSales Tax. The
calculation and payment of Sales Tax shall be performed according to the
following principles:
1. Sales Tax shall be paid quarterly in arrears, forty-five days
after the end of each calendar quarter in which City has actually received
such Excess Sales Tax Increment as confirmed by City. For example,
assume the Commencement Date is July 1, 1997; the amount of the first
Sales Tax payment will be based upon taxable sales which occurred on
this Site between July 1, 1997, and September 30, 1997, and would be
paid 45 days after the calendar quarter during which City actually received
such Excess Sales Tax Increment.
2. Sales Tax shall be applied to the Fiscal Year quarter in
which the Sales Tax Increment was generated on the Sites. For example,
assume the Commencement Date is July 1, 1997; while the first Sales
Tax payment may not be paid until about January 1, 1998, the amount of
the first Sales Tax payment will be based upon taxable sales which
occurred on the Site between July 1, 1997, and September 30, 1997.
3. The Base Sales Tax Increment threshold for purposes of
computing the Excess Sales Tax Increment shall be calculated, and
adjustments shall be made, on a City Fiscal Year basis.
AOLJn:H13UHSO/5/7187
4' ■ 1 I.
i 4 " * ' ♦.
1
4. The Base Sales Tax Increment threshold amount and other
adjustments for any period which is less than a calendar quarter or Fiscal
Year shall be prorated on a per diem basis using the actual number of
days elapsed and the actual number of days in that calendar quarter or
Fiscal Year.
5. In any Fiscal Year, Sales Tax shall be payable on account of
the Base Sales Tax Increment, or in the instance of a partial Fiscal Year,
on account of the prorated amount of Base Sales Tax Increment;
provided, however, that absent a reasonable expectation that taxable
sales will decrease substantially in a certain Fiscal Year, City shall
apportion the threshold amounts equally over four quarters. For example,
in the first quarter of a Fiscal Year, City shall pay Sales Tax (unless City
reasonably believes that Sales Tax Increment will decline significantly
during the successive calendar quarters) after City has received one-
fourth of the Base Sales Tax Increment. _
C. S-LLspension Qf Qbliaation to Pay Salea JaX. City's obligation to
pay Sales Tax shall be suspended at any time after thirty (30) days from written
notice of an Event of Default under this Agreement. If City has suspended its
payment of Sales Tax in accordance with the terms of the Agreement, then upon
cure of such Event of Default, City shall resume its payment of the Sales Tax,
but shall have no obligation to pay Sales Tax payments for any calendar quarter
or portion thereof during which Sales Tax was suspended in accordance with the
Agreement (other than to the extent City is obligated to continue the payment of
Sales Tax after a cure of the default until the Termination Date).
D. Confirmgtign that Sales Tax IncrementBeen Eggeived. City
shall confirm that Sales Tax Increment has been received. City may rely upon
the Board of Equalization report which follows payment to City setting forth the
sources of City's portion of the Sales Tax; provided, however, that this alternative
shall only be available for the users on the locations defined in Exhibit "F" if users
(i) have no other place of business in the City other than on the Sites, or (ii) have
a Board of Equalization tax identification number or numbers for reporting Sales
Tax generated by its business on the Sites only. Finally, Developer may offer
confirmation that Sales Tax Increment has been received by other means
satisfactory to City in City's sole discretion. In any event, no Sales Tax shall be
payable until the Sales Tax payment upon which the Sales Tax is calculated has
been confirmed.
Notwithstanding any other term, covenant, or condition contained in any
section of this Agreement, while the City agrees to use its best efforts to
appropriate sales and use tax revenues each year throughout the term of this
2
ADL:jn:Agree: HBUHS 01517197
Agreement, the City does not unqualifiedly and irrevocably obligate itself so to
act, nor to expend any funds of the City, nor does the City incur any specific
obligation or indebtedness hereunder which shall extend beyond the fiscal year
of the City within which this Agreement shall have been entered into, and the
City has and shall continue to have and enjoy the absolute right to expend the
sales and use tax revenues accruing in any future fiscal year in any manner
which the City shall deem appropriate in the sole exercise of its discretion. The
City shall in no way be obligated to make such appropriation if there are not
sufficient funds in the general fund of the City to do so.
in the event CITY fails and refuses to pay any portion of the sales taxes agreed
upon herein, then DEVELOPER shall have the right to terminate this Agreement
and any and all rights of CITY relating to the use of the tennis court facility
provided herein.
(The remainder of this page has been left blanMntentionally.)
3
ADL:i n:Ag ree: HBUH5 D15/7/97
EXHIBIT "H"
ROGRESS PAYMENT FORMULA
Payment 4 Payment Date _ Payment Percentage
1 Not later than 30 days after 20%
commencement of construction
2 30 days after Payment 1 20%
3 30 days after Payment 2 40%
4 30 days after Payment 3 1011/0
5 30 days after completion of 10%
improvements
r /v /-( c o c C xck Cc,.C_ ZAAL /' p 7�A-
cc[c Lcr�,� 'Ito ci. ILL cao ? Q&c- �j%� Grxs-t.�c� a .t
RECIPROCAL USE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH 90
AND THE HUNTINGTON BEACH UNION HIGH SCHOOL DISTRICT FOR USE OF
TENNIS COURTS AT OCEAN VIEW HIGH SCHOOL
This agreement is made and entered into this 13 day of May , 1997, by
and between the CITY OF HUNTINGTON BEACH, a California municipal corporation,
(hereinafter referred to as CITY), and the HUNTINGTON BEACH UNION HIGH SCHOOL
DISTRICT, (hereinafter referred to as DISTRICT).
RECITALS
WHEREAS, DISTRICT is developing at least ten (10) tennis courts at Ocean View High
School (hereinafter referred to as "School"), 17071 Gothard Avenue, Huntington Beach, CA in
conjunction with an agreement regarding the Home Depot Project and the reconfiguration of
playing fields at School; and
CITY and DISTRICT have entered into an Agreement regarding the Home Depot
Project; and
It is the intention of DISTRICT and CITY to share joint use of the tennis courts for both
school and public purposes; and
F_ducatron Code Section 10900, et seq. authorizes cities and school districts to enter into
agreements that will contribute to the attainment of general educational and recreational
objectives for children and adults in California.
NOW, THEREFORE, it is agreed by and between CITY and DISTRICT as follows:
jnip 'k;agrec:1iUfisdW2r5 12 97
l . IMPROVEMENTS. DISTRICT shall cause to be constructed pursuant to its agreement
with CITY, at least ten (10) tennis courts at School. DISTRICT hereby agrees to allow use of
School's tennis courts by CITY for public recreation and/or instruction pursuant to the terms and
conditions of this Agreement. DISTRICT shall own the improvements.
2. TERM. This Agreement shall remain in force for twenty (20) years and may be
extended annually thereafter unless either party elects to terminate same.
HOURS OF USE. First priority for the use of the tennis courts shall be for School related
uses. DISTRICT shall have exclusive use of the tennis courts during all scheduled school hours,
after school practice hours, OF sanctioned tennis leagues or tournaments, and at such other times as
the courts are reserved for official high school activities. CITY shall generally have use of the
tennis courts before and after scheduled school uses, weekends, and during school summer
vacation. Each year prior to September, School and CITY shall appoint a designated representative
to meet to develop an annual use schedule to accommodate School/DISTRICT needs and CITY
park and recreation needs pursuant to the exclusive use hours stated above. The annual time
allocation shall be approved by the Assistant Superintendent of DISTRICT's Business Services and
the Director of Community Services for CITY.
4. MAINTENANCE. DISTRICT agrees to provide at no cost to CITY the routine
maintenance for the upkeep of the tennis courts to insure that the courts are in a condition for use by
DISTRICT and CITY. DISTRICT and CITY agree to share equally the cost of major maintenance,
including resurfacing, replacement or nets and repair or replacement of light fixtures. If CITY
chooses to operate tennis lessons, leagues or tournaments whereby CITY charges a fee for such
events, CITY shall provide DISTRICT a portion of those fees not to exceed 10 percent thereof to
offset maintenance costs associated with CITY's increased use of tennis courts.
j mp!k/agree/hbhsdhd2i51 ] 2197 2
CITY HOLD HARMLESS. CITY hereby agrees to protect, defend, indemnify
and hold and save harmless DISTRICT, its Governing Board, officers, and employees against any
and all liability, claims, judgments, costs and demands for personal injury or property damage,
arising directly or indirectly out of the obligations or operations herein undertaken by CITY,
including those arising from the passive concurrent negligence of DISTRICT, but save and except
those which arise out of the active concurrent negligence, sole negligence, or the sole willful
misconduct of DISTRICT. CITY will conduct all defense at its sole cost and expense.
DISTRICT shall be reimbursed by CITY for all costs or attorney fees incurred by DISTRICT in
enforcing this obligation.
6. DISTRICT HOLD HARMLESS. DISTRICT hereby agrees to protect, defend,
indemnify, and hold and save harmless CITY, its officers and employees against any and all
liability, claims, judgments, costs and demands for personal injury or property damage arising
directly or indirectly out of the obligations or operations herein undertaken by DISTRICT,
including those arising from the passive concurrent negligence of CITY, but save and except
those which arise out of the active concurrent negligence, sole negligence, or the sole willful
misconduct of CITY. DISTRICT will conduct all defense at its sole cost and expense. CITY
shall be reimbursed by DISTRICT for all costs or attorney fees incurred by CITY in enforcing this
obligation.
7. INSURANCE Both parties agree to carry liability insurance for personal
injury and property damage in the amount of $1,000,000 naming the other party as an additional
insured or providing evidence of self-insurance.
jmp/k/agree/hhhsdhd2/5112:`97
8. NOTICES. All notices given hereunder shall be effective when personally
delivered or if mailed within forty-eight hours of the deposit of such notice in the U.S. Mail,
prepaid and certified with return receipt requested and addressed to DISTRICT or to CITY at the
respective addresses shown below:
TO CITY
Director of Community Services
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
8. ATTORNEY'S FEES.
TO DISTRICT
Huntington Beach Union High School
10271 Yorktown Avenue
Huntington Beach, CA 92646
Attn: Asst. Superintendent, Business
Services
In the event suit is brought by either party to enforce
the terms and provisions of this Agreement or to secure the performance hereof, each party shall
bear its own attorney's fees.
9. MODIFICATIONS. This Agreement may be modified only by a written
amendment signed by CITY and DISTRICT.
4
jmp1k/agrL%-Abhsdhd2/5/ 12/97
10. ENTIRETY. The foregoing sets forth the entire Agreement between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized officers the day, month and year first above written.
HUNTINGTON BEACH UNION CITY OF HUNTINGTON BEACH, a
HIGH SCHOOL municipal corporation of the State of
California
By: _
resident, Board rustees Mayor
By:( 2,Pvu �J -
APPROVED AS TO FORM:
ATTEST:
City Clerk 7?
APPROVED AS TO FORM:
School Legal Counsel Z4�
REV APPROVED: City Attorney Si'y f y,7
TIATE APPROVED: J
ity Administrator
"UrectooKommunity Services
5
jmp/k/agree/hbhsdhd2/5/ 12/97
CALIFORNIA ALL-PURPRE ACKNOWLEDGMENT is
State of ab- A.�
County of V(-qT�
o—
On g f before me, A, AfeJ54 Nf Alp�/
Da:e /y Name and Tit a of Officer (e.g., 'Jere Doe. NO10A Public)
&r
personally appeared
Names) of Signer(s)
personally known to me - - to be the person(�)-
whose name(8f)0afe subscribe to the within instrument
and acknowledged to me that &9heAhey executed the
(ame ir&he#*f ek authorized capacity(+es), and that by
i's/herhe+r signature( on the instrument the person(s),
LnuRAA. NELSON or the entity upon behalf of which the person(s) acted,
„ „# 106e executed the instrument.
rev Comm Ba Jut 23, 1999
WITNESS my -hand and official seal.
Though the information below is not required bylaw., it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Tye of Document: lfu.,-fi f.re
Document Date: Number of Pages: 67-
Signers) Other Than Named Above: �cltir P��4 - - - %�o a-�� �. •fin bra �P/C�b,
Capacity(ies) Claimed by Signet'(s)�
Signer's Name: /{ tY ' Signer's Name:
r,
J
Individual
Corporate Officer
Title(s):
Partner — ❑ Limited ❑ General
Attorney -in -Fact
Trustee
Guardian or Conservator - ,
Other: -oo - .^jm� r e
Signer Is Representing: I I
■
Individual
Corporate Officer
Title(s):
Partner — Limited - General
Attorney -in -Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
RIGHT THUM BPRINT
OF SIGNER
Z 1995 Na!lonal Nztary Asscciaro-i • 2236 Remmet Ave., a0. Box 7ia4 • Caroga Park, CA 9.3-�9-7184 Prod. %c. 5907 Reo ice•: Cal Toll -Free 1-800-876-6827
CALIFORNIA ALL-PURPRE ACKNOWLEDGMENT
i
State of Ott Lt..
County of _—.__ . ..••_
On dL_Ati� before me, )jo/L� ALAG
Date Name and Title Df Oficer (e.g.. 'Jane Doe, Not jblit")
personally appeared at j Ay _
Narre;sj of Signan:sj
personally known to me - _ e to be the person(
whose name(SO/em-subscribed to the within instrument
and acknowled ed to me that hakgj7jthey, executed the
same in hill heir authorized capacityM*t and that by
er heir signature(s� on the instrument the person(by,
LAUor the entity upon behalf of which the person(�s4-acted,
�'
CAmrnlssW4•n NE=/ 1066�3 executed the instrument.
_
Notary PUM — Cc uonla
011ci+oeCAMht WITNESS m d and official seal.
my Comm Eq*m JU 23, l999
S gnatire of Notay Pucl c
OJIM0NAL
Though the information below is not required by law, it may prove valuable to persons retying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Doc ment: C
Document Date: 2E<
ZI �-ei ^7 Number of Pages: 15
Si{g�ner(s) Other Than Named Above: ` Srs/��.�-f'
{�"C r-C in C..t .� rc�c�..) �c- f 1«.l 6�
Capacity(ies) Claimed by Signer(s)
Signer's Name: e-QAf f ' L 6 12CCA407 F'_1
Signer's Name:
Individual - Individual
- Corporate Officer - Corporate Officer
Title(s): Title(s):
❑ Partner — ❑ Limited ❑ General ❑ Partner — ❑ Limited ❑ General
❑ Attorney -in -Fact r Attorney -in -Fact
❑ Trustee _ _ - Trustee
Guardian o Conservator UP ' . = Guardian or Conservator
Other: ('emu - Top thurro here ❑ Other:
i
Signer IspRepresenting:
� Signer Is Representing:
i
RIGHT THUMBPRIfJT
OF SIGNER
Top of r her
0 1995 National Notary Association • 8236 Re^1rre1 Ave.. P.O. Box 7184 - Canoga Part, CA 91309.7164 Prod. No. 5907 Reorder: Call Tcl -Free 1-800-876-6827
110 0
Repayment Schedule
ATTACHMENT #4. .....
0 Sheetl •
HIGH SCHOOL DISTRICT/HOME DEPOT
TRAFFIC IMPACT FEE FUND REPAYMENT SCHEDULE
FROM THE GENERAL FUND
Fiscal
Principal ISix
%
Principal
Annual
Year
Balance
Interest
:Payment
Payment
!
I
1998/99
$255,000 i
$15,300
$9,700
, $25.000
1999/00
$245,300 !
$14,718
$10,282
. $25.000
2000/01
$235,018
$14,101
$10,899
$25,000
2001/02
$224,119 !
$13.447
1 $11,553
$25,000
2002/03
1$212,566 !
$12,754
1 $12.246
1 $25,000
'
2003/04
$200,320 !
$12,019
. $12,981
$25,000
2004/05
$187,339 !
$11,240
$13,760
$25,000
2005/06
$173,580 !
$10,415
$14.585 T
$25,000
2006/07
$158,995 i
$9,540
$15,460
$25,000
2007/08
$143,534
$8,612
$16,388
I $25,000
2008/09
$127,146 !
$7,629
$17,371
$25,000
2009/10
$109,775
$6,587
$18,413
$25,000 .
2010/11
$91,362 !
$5,482
$19,518
$25.000
2011/12
$71,843 ;
$4,311
$20,689
$25.000 ,
2012113
$51,154 i
$3,069
$21,931
$25.000 ;
2013/14
$29,223 i
$1,753
$23,247
$25,000
2104/15
F $5,976 i
$359
$5,976
$6,335
Page 1
0
�J
Part 1
• City advances $385,000 in cash from fees generated by the
retail development towards cost of constructing tennis
courts.
• City retains first $50,000 of annual net -increase in sales tax:
$25,000 General-Tund Revenue Stream-
$25,000 Nominal "Repayment" for Advance
5•
Part 2
Annual Payment.
Formula A
ANIST LM than $305,000 there will be a 8.5% annual payment* as follows:
Calculation:
ANIST
Annual Payment
Distribution:
City
School District
City
* for 20 years.
Example At: Example A2:
$ 51,000 $ 100,000
4,335 8,500
" $ 50,000 $ 50,000
1,000 8,500
0 41,500
•
•�
Part 2
Annual Pa ent
Formula B
ANIST more than $305,000 there will be a annual payment* calculated at 20%
less a $25,000 deduction as follows:
Calculation: Example Bl: Example B2:
ANIST $ 306,000 $ 400,000
20% Amount 61,200 80,000
Deduction 25,000 25,000
Annual Payment 36,200 55,000
Distribution:
City $ 50,000 $ 50,000
School District 36,200 55,000
City 219,800 295,000
for 20 years.
(g:davridlp rojects%schmiakchome.doe)
*1 -
9
............
X X ATTACHMENT.. ..-......TPX. X
0
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Michael T. Uberuaga, City Administrator
From: Robert J. Franz, Deputy City Administrator
Subject: FIS 97- 33 Revenue Sharing Agreement with Huntington
Beach Union High School District
Date: April 29, 1997
As required by Resolution 4832, a Fiscal Impact Statement has been
prepared for the Revenue Sharing Agreement with Huntington Beach
Union High School District.
If the City Council approves this request, the estimated unreserved,
undesignated fund balance of the General Fund at September 30,
1997 will be reduced to $5,743,580. The estimated unreserved,
undesignated fund balance of the Traffic Impact Fee Fund will be
reduced,to $$EW,000.
Fk'obedl'Franz,
Deputy City Admini
• •-
$6,000,000
$5,600,000
$5,000,000
$4,600,000
$4,000,000
$3,600,000
$3,000,000
$2,500,000
$2,000,000
Adopted Current
.Fund Balance - General fund Budget Estimate
Beginning Fund Balance
$ 3,227,959
$ 6,847,000
Plus Budget Surplus
356,590
1,017,310
Plus One Time Revenue (Estimated)
1.1.30,000
PERS Refund
456,000
Less Approved One -Time Costs
(1,350,197)
Less Transfer of PERS Refund
(2,199,627)
Less: Pending Budget Amendments
(26,906)
Less FIS 97-33
(130,000)
Estimated 9/30/97 Balance
$ 3,584.549
$ 5,743,580
Fund Balance - General Fund
Adopted Revised
Budget Estimate
j
bud. 1
City's Goals Were:
♦ Receipt of First New Revenues.
• Reimbursement of Upfront
Funds from New Revenues.
♦ Increased Revenues from Both
Sites. [existing locale and new]
♦ Linked to tangible public
improvements.
sude s
Tonight's Actions
• Approve Revenue Sharing
Agreement.
♦ Appropriate $385,000 for Tennis
Court Reimbursement.
• Approve Reciprocal Use
Agreement for Tennis Courts.
6ude S
City Council Approved
Revenue Sharing Structure
March 18,1996
School DWrlct's Goals Were:
• Guaranteed RevenueStream/
Cash Flow.
• Long Term New Revenue Stream.
• Amount Upfront to Offset Costs.
Two Basic Provisions
1) Tennis Court Reimbursement.
2) Annual Sales Tax Sharing.
(20 years)
rude 3
_sude •
Me i
F-1
11
W
ri
0
�J
Tennis Court Reimbursement
Ten Lighted Tennis Courts
$385,000 from Project Generated
New Revenues:
• $130,000 in General Fund Fee &
Permit Revenues.
• $255,000 in Traffic Impact Fees.
SUd. 7
What City Gets:
1) Up to $50,000 of first new sales tax
revenue from new Home Depot site or
from new sales taxes generated from
reuse of previous Home Depot gibe.
2) 915% of increase in sales tax to $305,000 from
new and previous Home Depot sites.
3) 80% of increase in sales tax from $305,000 and
above, after receiving first $25,000.
sad. !
In Addition to Approval of
Entitlements, Approval of this RCA
Would Result In:
• Retaining Home Depot in City
and Expansion at Superior Site.
• Opportunities for New
Retailers at Old Site.
• Increases in Sales Tax Revenue
to City.
sue 11
Annual Safes Tax Sharing
1) Calculated on Annual Net Increase in Sales
Tax Above S38S,000 Existing Base.
• New Home Depot
• Replacement Uses at Old Site
2) First S50,000 In Increase is City Priority Share,
$25,000 Represents Repayment of Tennis
Court Reimbursement.
3) Two-tier Sharing Thereafter.
Md. a
What HBUHSD Gets:
1) 8.5% after first $50,000, of increase in sales
tax from new and previous Home Depot
sites, up to SM5,000.
2) 20%, less $25,000, from $305,000 and up of
increase in sales tax from new and previous
Home Depot sites.
suae 1s
In Addition to Approval of
Entitlements, Approval of this RCA
Would Result in: [cont.]
• Construction of 10 Tennis Courts with
Reciprocal Use.
• City Revenue Sharing with District.
• Developer Ground lease Payments to
District.
• Elimination of Existing Apartments
Entitlements.
SUde U
2
The End.......
3
County of Orange
SOCIAL SERVICES AGENCY
SOCIAL SERVICES ADMINISTRATION
886 N. MAIN STREET
SANTA ANA, CA 92701-3518
(714)541-7700
May 13, 1991
Ms. Karyl Winslow, Director
Huntington Youth Shelter
P. O. Box 709
Huntington Beach, CA 92648-0709
Dear Ms. Winslow:
L.ARRY M. LEAMAN
DIRECTOR
MADE APART OF THE RECORD AT THE
}._r:CIL,MEETING OF
OFFICE OF THE CITY CLERK
C7-`:0111E BROCKWAY, CITY CLERK
RECEIVED FROM 6'`� U01911AV--
AND MADE A PART OF THE RECORD AT THE
COUNCIL MEETING OF
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY, CITY CLERK
I am glad that Judy Tanasse and I had an opportunity to meet with you and learn about the
assumption of operational responsibility for the Huntington Youth Shelter by the Volunteers of
America.
As we discussed, we did arrange for my staff to visit the shelter and review your operation, program
and technical support. They believe it to be sufficient for operation as a youth shelter and the
mission of the shelter as approved by your Board of Directors and which you point out is a
recommitment to the original mission of the shelter as established by its founders. My staff observed
that the facility is well designed and maintained and provides a comfortable, clean and safe setting
for youths and their families to attempt to reconcile their problems.
We believe the ten beds for runaway and homeless youths are a valuable resource and will be taking
steps to better inform our professional social work staff of their availability for runaway and homeless
youth. We hope that your contract with the City of Huntington Beach is renewed so that you may
continue to carry out the original mission of the shelter.
Since we met in my office, Dr. Michael Riley, formerly with Boys Town, has joined my agency as
Director of Children and Family Services. While Dr. Riley is going to be quite busy for the next few
months settling into his new position, I have suggested to him that when time permits, he contact you
to arrange to meet you and visit the shelter himself.
Very truly yours,
V dAVA.-I
ery7
M. Leaman
Director
/Pl
c: Michael Riley
Judy Tanasse
a F083.03-81 (1197)
sud. r
City's Goals Were:
♦ Receipt of First New Revenues.
• Reimbursement of Upfront
Funds from New Revenues.
• Increased Revenues from Both
Sites. [existing locale and new]
♦ Linked to tangible public
improvements.
sud.
Tonight's Actions
♦ Approve Revenue Sharing
Agreement.
• Appropriate $385,000 for Tennis
Court Reimbursement
• Approve Reciprocal Use
Agreement for Tennis Courts.
RECEIVED FROM
AND MADE A PART OF THE RE Rb T
COUNCIL MEETING OF L
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY, CITY CLERK
City Council Approved
Revenue Sharing Structure
March 18, 1996
School District's Goals Were:
♦ Guaranteed RevenueStream/
Cash Flow.
♦ Long Term New Revenue Stream.
♦ Amount Upfront to Offset Costs.
Two Basic Provisions
1) Tennis Court Reimbursement
2) Annual Sales Tax Sharing.
(20 years)
sud. S u Slid. f
� 1
Tennis Court Reimbursement
Ten Lighted Tennis Courts
$385,000 from Project Generated
New Revenues:
♦ $130,000 in General Fund Fee &
Permit Revenues.
♦ $255,000 in Traffic impact Fees.
S Ld. r
What City Gets:
1) Up to $50,000 of first new sales tax
revenue from new Home Depot site or
from new sales taxes generated from
reuse of previous Home Depot site.
2) 91.5% of increase in sales tax to $305,000 from
new and previous Home Depot sites.
3) 80% of increase in sales tax from $.'i05,000 and
above, after receiving first $25A00.
rude
In Addition to Approval of
Entitlements, Approval of this RCA
Would Result In:
♦ Retaining Home Depot in City
and Expansion at Superior Site.
• Opportunities for New
Retailers at Old Site.
♦ Increases in Sales Tax Revenue
to City.
side tr
Annual Sales Tax Sharing
1) Calculated on Annual Net Increase in Sales
Tax Above 5385,000 Existing Base.
• New Home Depot
• Replacement Uses at Old Site
2) First $50,000 in Increase is City Priority Share;
$25,000 Represents Repayment of Tennis
Court Reimbursement
3) Two-tier Sharing Thereafter.
side it
What HBUHSD Gets:
1) 8.5% after first $50,000, of increase in sales
tax from new and previous Home Depot
sites, up to $305,000.
2) 20%, less $25,060, from $305,000 and up of
increase in sales tax from new and previous
Home Depot sites.
side ra
In Addidon to Approval of
Entitlements, Approval of this RCA
Would Result in: [cont.]
• Construction of 10 Tennis Courts with
Reciprocal Use.
• City Revenue Sharing with District.
• Developer Ground lease Payments to
District.
• Elimination of Existing Apartments
Entitlements.
Md. u
4
The End.......
SH& is
m
ta` e
¢s F
z U1�
1--uft.ar pyY tiQ
y�Qy SCwO.�'d`6
HUNTINGTON BEACH UNION
HIGH SCHOOL DISTRICT
effAAle -
yoiWr r wet G�
, re doj
/ oard of Trus ees: i
Bonnie Bruce
Bonnie Castrey
Barbara Johnson
Curt Jones
10251 Yorktown Avenue • Huntington Beach, California 92646-2999 Michael Simons
(714) 964-3339 FAX (714) 963-7684 Ronald G. Bennett, Ed.D., Superintendent of Schools
June 12, 1997
Mr. David Biggs
Economic Development Department
City of Huntington Beach
2000 Main Street 5th Floor
Huntington Beach, CA 92649
RE: Revenue Sharing Agreement
Dear Mr. Biggs:
SUN I ��Q
1
6coNeMggT I,gg�
c�FyE(�pF
MFNT
Enclosed per your request is a Board Excerpt from the May 13, 1997 Regular Board Meeting
approving the subject agreement with the City of Huntington Beach. If you need anything
fiirther, please let us know.
Cordially,
Sharon Sanderfield
Executive/Fiscal Secretary
Business Services
The mission of fhe fIBL-H.SD, responsive to our diverse community expectations, is to educate all students by ensuring a relevant and
focused educational program which develops responsible, productive and creative individuals with a capacity for leadership.
Board of Trustees:
HUNTINGTOM BEACH UNION 0 Bonnie Bruce
HIGH SCHOOL DISTRICT Bonnie C
Barbara Johnson Bonnie
astrey
Curt Jones
Michael Simons
10251 Yorktown Avenue • Huntington Beach, California 92646-2999
1714) 964-3339 Office of the Superintendent FAX 1714) 963-7560 Ronald G. Bennett. Ed.D., Superintendent of Schoole
EXCERPT FROM AI MUTES OF THE REGULAR BOARD MEETING
May 13, 1997
AGREEMENT- It was moved by Mrs. Johnson, seconded by Mrs. Bruce, to approve a
REVENUE SHARING: revenue sharing proposal between the district and the City of Huntington
(V-Q Beach for tax revenue generated by the Home Depot project at
Goldenwest and Warner. The agreement is available for review in the
Business Division.
Motion unanimously carried.
Ronald G. Bennett, Ed.D.
Secretary to the Board
The nussion of the HBUHSD, responsive to our diverse conrnunity expectations, is to educate all students by ensuring a relevant and
focused educational program which develops responsible, productive and creative individuals with a capacity for leadership.
Huntington Beach Union High School District'
10251 Yorktown Avenue
Huntington Beach, CA 92646
Carole Thomas
Executive Assistant
Notary Public
cthomas@hbuhsd.kl 2.ce.us
FAX (714) 963-7560
(714) 964-3339 Ext. 4202
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
June 13, 1997
Huntington Beach Union High School District Office
Dr. Ronald Bennett
10251 Yorktown Avenue
Huntington Beach, CA 92646
Dear Dr. Bennett:
CALIFORNIA 92648
RECEIVED
J U N 16 1997
SUPTJBOARD
Enclosed please find an original Agreement between the City of Huntington Beach and the
Huntington Beach Union High School District - Revenue Sharing Agreement - Reciprocal Use
Agreements - Tennis Courts at Ocean View High School.
Please have your signature notarized as soon as possible and return the notarized agreement
to the Office of the City Clerk, City of Huntington Beach, 2000 Main Street, Huntington Beach,
Ca. 92648 in the enclosed self-addressed envelope. I have indicated the page where your
signature must be notarized with a yellow "sign here" indicator.
Please do not hesitate to call if you have any questions.
Sincerely,
Connie Brockway
City Clerk
CB:jc
CC:David Biggs, Economic Development Director
Attachments: Agreement/Reciprocal Agreement
ME
l.Qo ja1"--JF�,Z 1g) lqq�
-
97-070jc/.doc/Hstcnnis: jc
( Telephone: 71463"227
0
0
,APPROVED RCA
RETURNED FOR COMPLETION
5/22/97
RECEIVED
TO: Economic Development (Given to City Attorney)
MAY 3 0 1997
FROM: Tat Dapkus -Administration DEPARTMENT -OF
a � "_
f� ECONOMIC DEVELOPMENT
2
SUBJECT: H.B. Union H.S. Revenue Sharing Agreement t— jorocJ(Ae-
REASON FOR Needs City Attorney's & City Administrator's signatures. Q
RETURNING:
From the Council Meeting of 5/19/97
Agenda Item Number:
Date Returned to Administration
Date Returned.to City Clerk
F-1
The RCA attachedwas approvedby the City Councilat their meeting
of _S/l.A/97. -At the time of approva(the item was incomplete.
?his item is being returnedso that it can be completed. When
completed, ptease return to me for forwarding back to the City Clerk.
Thank you,
(Pat l�apkus
6IM17
•
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
September 3, 1997
Gary L. Granville, County Clerk -Recorder
P. 0. Box 238
Santa Ana, California 92702
CALIFORNIA 92648
Enclosed please find Revenue Sharing Agreement between the City of
Huntington Beach and Huntington Beach Union High School District to
be recorded and returned to the City of Huntington Beach, Office of the
City Clerk, 2000 Main Street, Huntington Beach, California 92648.
Please conform the enclosed copy of the Agreement and return to this
office in the enclosed self-addressed stamped envelope.
Connie Brockway, CIVIC /
City Clerk
CB:jc
Enclosure: Revenue Sharing Agreement City of Huntington Beach and
Huntington Beach Union High School District
gafollowvplAgreement City & Union High School District:jc
{Tale phone: 714.536-5227 )
Ad
10
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
CALIFORNIA 92648
CITY CLERK LETTER OF TRANSMITTAL REGARDING ITENI APPROVED BY THE
CITY COUNCILIREDEVELOPMENT AGENCY APPROVED ITEM
DATE: %%
TO: TTENTION: L.4zAa dmzz��
Name r'
DEPARTMENT:
s t '
REGARDING:
City, State,
See Attached Action Agenda Item _ _ / Date of Approval /
Enclosed For Your Records Is An Executed Cop} Of The Above Referenced Item For Your Records.
Connie Brockway
City Clerk
Attachments: Action Agenda Page . V — Agreement Bonds Insurance
RCA Deed Other
Remarks:
CC: Jz ✓ G
tiar^e Depanarcrtt RCA Ag4ernc^2 :nswance Other
Name Department RCA Agee mcnl Insurance Ot!.cr
Name
Dcpar.. —nt RCA Agmeawnt Insurance 01hor
Risk Management Department Insurance Copy
G.Follomip agrtnts trans:ir
1 Telep hone: 714.536.5227 )
CouncillAgency Meeting Held: � � �
Council/Agency Meeting Held:
6t7a•io /�7.r_
nofo��onic,,,,r���odr��
DeferredlCantinued to:
❑ Approved onditionall pproved ❑ Denied
City Clerk's 8ignatuP661
Council Meeting Date: March 2, 1998
Department ID Number: ED 98-08
,cQv� /G �dmmFi�dca rler rrti/,'
CITY OF HUNTINGTON BEACH APP�a R,,q'3S�;ovo
REQUEST FOR COUNCIL ACTION roR � nFMN/S i ou-e-r
�..�.rJ�i�a" , R,ew�mBuRs�7n�n r �iParr� rr
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS 7-0
SUBMITTED BY: RAY SILVER, Acting City Administrator old
PREPARED BY: DAVID C. BIGGS, Economic Development Director
ROBERT J. FRANZ, Deputy City Administrator/Administrative Services
el
SUBJECT: Appropriation For Contractual Obligations Related To Huntington
Beach Union High School District
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: On May 19, 1997, the City Council approved a Revenue Sharing
Agreement with the Huntington Beach Union High School District regarding the development
of a portion of the Ocean View High School Wintersburg site. The funds necessary to meet
the City's contractual obligations under this agreement were inadvertently not included in the
FY 1997/98 Budget.
Funding Source: Revenues received in FY 1996/97 (Traffic Impact and other fees).
Recommended Action: Motion to, Appropriate $385,000 for the tennis court
reimbursement in the form of $130,000 from the General Fund balance and an interfund
loan of $255,000 from the Traffic Impact Fee Fund balance as a loan to the General Fund.
Alternative Action(s): None
Analysis: Pursuant to the Revenue Sharing Agreement between the City and Huntington
Beach Union High School District, the District recently submitted its first invoices for
reimbursement of the cost of the tennis courts now under construction as part of the Home
Depot development. The amounts necessary to reimburse the District were not carried over
into the FY 1997198 budget. The recommended action conforms to the City Council
approval on May 19, 1997, (a copy of this Request for Council action is attached), and will
allow staff to process the invoices for payment.
The City will receive the first $50,000 in increased annual sales tax revenue above the base
of $385,000 from the relocated Home Depot and any replacement uses at the current Home
Depot site. Twenty-five thousand dollars ($25,000) of this first $50,000 in increased annual
F
QUEST FOR COUNCIL ACAN
MEETING DATE: March 2, 1998
DEPARTMENT ID NUMBER: ED 98-08
sales tax revenue will be used to repay the Traffic Impact Fee fund as illustrated in
Attachment 2. After the City gets the first $50,000 in increased annual sales tax revenues,
there will be, some revenue sharing with the. High School District as illustrated in
Attachment 3.
Environmental Status: None applicable.
Attachment(s)•
RCA Author: D. Biggs, Ext. 5909
ED9808.DOC
-2-
02/23/98 3:58 PM
•
0
Request for Council Action Dated May 19, 1997
ATTACHMENT #1.. .. ......
a
Council/Agency Meeting Held:
Deferred/Continued to:
0 Approved ❑ Conditionally Approved 0 Denied
City Clerk's Signature
Council Meeting Date: May 19, 1997
Department ID Number: ED 97-16
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator
PREPARED BY: DAVID C. BIGGS, Director of Economic Development
SUBJECT: Revenue Sharing Agreement with Huntington Beach Union High
School District
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachments)
Statement of Issue: On March 18, 1996, the City Council directed staff to develop the
legal documentation necessary to implement revenue sharing with the District in order to
facilitate commercial development and additional recreational facilities on a portion of the
Oceanview High School/Wintersburg site. A Revenue Sharing Agreement has been
developed which will memorialize the proposed revenue sharing structure.
Funding Source: Future sales tax revenues generated by the development for the annual
revenue sharing. Fees and charges estimated to be more than $600,000 to be paid at the
time of development for the $385,000 reimbursement to the District for the cost of ten tennis
courts. A Fiscal Impact Statement is attached.
Recommended Action: Motion to:
1) Approve the Revenue Sharing Agreement with the Huntington Beach Union High School
District and authorize its execution by the Mayor and City Clerk, and;
2) Appropriate $385,000 for the tennis court reimbursement in the form of $130,000 in
unanticipated General Fund fee revenue; and an interfund loan of $255,000 from the Traffic
Impact Fee Fund to the General Fund with said interfund loan to be repaid on an annual
basis from the first $25,000 in increased sales tax revenue from the relocated Home Depot
until fully amortized at 6% interest pursuant to Attachment 4.
3) Approve the Reciprocal Use Agreement with the Huntington Beach Union High School
District and authorize its execution by the Mayor and City Clerk.
Alternative Actions : Approve the Revenue Sharing Agreement with modifications as
directed by Council.
REQUEST FOR COUNCIL ACTIN
MEETING DATE: May 19, 1997 DEPARTMENT ID NUMBER: ED 97-16
Analysis: The proposed Revenue Sharing Agreement memorializes the revenue sharing
formulas conceptually approved by the City Council on March 18, 1996. A copy of the
March 18, 1996, Request for Council Action is attached (Attachment 1). Rather than the
originally anticipated Lease/Sublease, a simpler deal structure has been developed as
evidenced by the Revenue Sharing Agreement (Attachment 2). The approval of the
Revenue Sharing Agreement has been timed to occur at the same Council meeting as the
entitlements for the development.
The Revenue Sharing Agreement has two basic provisions. First, the City will reimburse the
District for $385,000 in costs associated with the construction of at least ten tennis courts at
Oceanview High School. In exchange, the City will have reciprocal use of the tennis courts
for the City's recreational programs and the general public. The future public use of the
tennis courts is memorialized through the proposed Reciprocal Use Agreement (Attachment
3). This reimbursement is, in effect, an advance of future revenue sharing.
Second, the City will share with the District a portion of the annual net increase in sales tax
which results from the relocation and expansion of Home Depot. The annual payment will
be calculated based on the net increase in sales tax from the relocated Home Depot and
the sales tax from the replacement users at the former Home Depot site. Since the
relocation of Home Depot, in effect, creates retail space which can be made available to new
retailers, this ensures that any payments made to the District truly reflect the impacts of the
new facility. The payment to the District will be made from the sales tax revenues
generated by the Home Depot use on the District's property. A detailed explanation of the
revenue sharing formulas are set forth in Exhibit F to the Revenue Sharing Agreement.
The proposed Revenue Sharing Agreement incorporates indemnification language which
requires the District to defend and indemnify the City in the event the Revenue Sharing
Agreement is subject to a legal challenge.
The Board of the District approved the Revenue"Sharing Agreement at its meeting of May
13th. The approval of the entitlements and the Revenue Sharing Agreement by the City
Council at this meeting will enable the required field relocation to commence in June with the
construction of the new Home Depot to begin in the fall. The City will benefit by the
development of a major retailer at a key intersection with increased visibility in a facility
which meets contemporary retailing standards with the added potential to generate sales
tax. In addition, as discussed above, Home Depot's existing approximately 120,000 square
foot building will be freed -up for replacement retailers. Furthermore, the City and the
general public will benefit from the development of ten tennis courts. Finally, The District
will use the revenues from the ground lease with Home Depot and the sales tax sharing
revenues to enhance the high school educational system and facilities in Huntington Beach.
A portion of the Traffic Impact Fees to be paid by the Developer will be used to reimburse
the High School District for the construction of ten tennis courts. The payback period to the
Traffic Impact Fee Fund is anticipated to be 17 years based upon a fixed interest rate of 6%
RCA97-16.DOC -2- 02113/98 2:02 PM
REQUEST FOR COUNCIL ACTIIIN
MEETING DATE: May 19, 1997
DEPARTMENT ID NUMBER: ED 97-16
and a $25,000 annual payment from the increased sales tax which will result to the General
Fund. Traffic Impact Fee Fund revenue which is accruing from this development, which may
not have otherwise been forthcoming, will not be immediately available for the construction
of traffic related improvements. However, the benefits from the investment is believed by
staff to outweigh any potential impacts to the scheduling of Traffic Impact Fee funded
improvements.
Environmental Status: Not applicable for the Revenue Sharing Agreement. The
entitlement package for the development project has been assessed by an Environmental
Impact Report (EIR 96-3).
Attachment(s):
1 RCA from March 18, 1998
2 Revenue Sharing Agreement
3 Reciprocal Use Agreement
4 Repayment Schedule
5 Fiscal Impact Statement
RCA97-16.DOC -3- 02/13/98 2:02 PM
Repayment Schedule
ATTACHMENT #2
0 Sheet1 0
HIGH SCHOOL DISTRICT/HOME DEPOT
TRAFFIC IMPACT FEE FUND REPAYMENT
SCHEDULE
FROM THE GENERAL
FUND
Fiscal .
Principal
Six %
Principal
Annual
Year
Balance
Interest
Payment
Payment
1998/99
$255,000
$15,300
$9,700
$25,000
1999/00
$245,300
$14,718
$10,282
$25.000
2000/01
$235,018
$14,101.
$10,899
$25.000
,
2001102
$224,119
$13,447
$11,553
$25,000
2002103
$212,566
$12,754
$12.246
$25,000
2003104
$200,320
$12,019
$12,981
$25,000
2004/05
$187,339
$11,240
$13,760
$25,000
2005106
$173,580
$10.415
$14,585
$25,000
2006/07
1$158.995
$9,540
$15,460
$25,000
2007/08
$143,534
$8,612
$16.388
$25,000
2008/09
$127,146
$7,629
$17,371
$25,000
2009110
$109,775
$6,587
$18,413
$25,000
2010111
$91,362
$5,482
$19,518
$25,000'
2011/12
$71.843
$4,311
$20,689
$25,000
2014W13
$51,164
$3,069
$21,931
$25,000
2013/14
$29,223
$1,753
$23,247
$25,000
2104115
$5,976
$359
$5,976
$6,335
Page 1
Revenue Sharing Program
ATTACHMENT #3
i •
EXEMZT - Mlr+
CITY shall pay to DEVELOPER a portion of the Annual Net
Increase in Sales Tax ("ANIST") computed as follows:
ANIST shall be equal to the sales tax generated by the
Home Depot facility plus the sales taxes generated by uses at the
former Home Depot facility located at 6912 Edinger Avenue,
Huntington Beach, consisting of Assessor's Parcel Nos. 146-463-18
and 146-463-25 lens a Base'Amount of $385,000.
A. Should the ANIST be $306, 000 or less in any one
calendar year, there shall be an annual payment to DEVELOPER of
8.54; of the ANIST minus a City Priority Share of $50,OQ0.
EXAMPLE CA =LATIONS
Example Ate= _
- xample .A2-.
ANIST
$ 51,000
$100,000
Calculated Annual Payment*
4,335
8,500
Example Al
Example A2
ANIST
S 51,000
$ 100,000
Less city Priority Share
$ 50,000
$ 50,000
Available ANIST**
1,000
50,000
Annual Payment to r
DEVELOPER* * *
1,000
84,500 .
+► ANIST multiplied by 8.5 equals Calculated Annual Payment
+* AHIST less City Priority Share equals the Available ANIST
+�** Annual Payment to DEVELOPER shall be Calculated Annual Payment
or the Available ANIST, whichever is less
I1a59\t��ioaw�ts�M�it1117E1.i3[F 1 43/26n7
B. *should the ANIST be more than $305,000 in any
one calendar year, there shall be an annual payment to DEVELOPER of
20% or ANIST minus $25,000 calculated as follows: r
MUIPLE CALCULATIONS
Exn le B1
Example 82
5 306,000
S 400,000
ted Annual.
*
FAAArmuTal
61,200
80,000
d Calculated
Payment**
36,200
55,00'0
Example Bi
Example B2
$ 306,000
$ 400,000
y Priority
rJAWnnual
5os000
50,000
a ANIST***
256,000
350,000
Payment to36,200
ER****
55,QOa
* ANIST multiplied by 20% equals Calculated Annual Payment
** Adjusted Calculated Annual Payment shall be the Calculated
Annual Payment less $25,000
*** Available ANIST shall be the ANIST less City Priority Share of
$50,000
**+* The Annual Payment to DEVELOPER shall be the Adjusted
Calculated Anr►ual Payment or the Available ANIST vhichaver is
less
01859\nM1\dOQUM \%WIMIER.W 2 OV26M
Or
Fiscal Impact Statement 98-30
ATTACHMENT #4
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, Acting City Administrator
From: Dan T.Villella, Director of Finance
Subject: FIS 98-30 Appropriation for Contractual Obligations Relating
to Huntington Beach Union High School District
Date: February 19, 1998
As required by Resolution 4832, a Fiscal Impact Statement has been
prepared for Appropriation for Contractual Obligations Relating to
Huntington Beach Union High School District.
If the City Council approves this action the estimated unappropriated,
undesignated General Fund balance at Sept ber 30, 1998 will be
reduge^ $5,9Q9,1
Robert J. Frant, j
Deputy City Administrator
0 fis9830 0
1y 'A .opted' . Current .,
' Fund:Baiance General Fund,... ...:. .,:.,-.,Budget... Estimate,,.
Beginning Fund Balance 1011197 (Est)
$ 5,100,000
$ 7,884,000
Plus Estimated Increased Revenue
1,590,500
Plus One Time Revenue (Estimated)
1,358,780
Less Approved Budget Amendments
(1,770,000)
Less Labor Contingencies
(610,000)
Less Self -Insurance Transfers
(1,800,000)
Less Pending FIS's
(359,147)
Less FIS 98-30
(385,000)
Estimated 9/30/98 Balance
$ 5,100,000
$ 5,909,133
Estimated General Fund Balance at September 30, 1998
x
$6,600,000
$5,000,000
$6,909,133
$4,600,000
I
$4,000,000
$6,100,000 I
$3,600,000
$3,000,000
ADOPTED BUDGET CURRENT ESTIMATE
G: %ACCTGgF IS9798.X LS]fis9830
Page 1
0 .0
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Economic Development
SUBJECT:
Appropriation for Contractural Obligation
COUNCIL MEETING DATE:
March 2, 1998
:.:RCA. ATTACHMENTS ...........:...
... :STATUS.:.....
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (wlexhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney)
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Not Applicable
Financial Impact Statement (Unbudget, over $5,000)
Not Applicable
Bonds (If applicable)
Not Aeplicable
Staff Report (If applicable)
Not Applicable
Commission, Board or Committee Re ort (If applicable)
Not Applicable
Findings/Conditions WApproval and/or Denial
I Not Applicable
EXPLANATION FOR'MISSING ATTACHMENTS
EXPLANATION:FOR RETURN OF. ITEM.:..—
RCA Author: D. Biggs, Ext. 5909
,e a
600. /D //ZC..
CITY OF HUNTINGTON BEACH
®1a InterOffice Communication
Economic Development Department
TO: Honorable Mayor and City Council Members
VIA: Ray Silver, Acting City Administrator
FROM: David C. Biggs, Economic Development
DATE: March 11, 1998
SUBJECT: Funding Rationale/Restrictions Regarding Huntington Beach High
Union High School District /Home Depot Project
On March 2, 1998, the City Council continued action to March 16, 1998, on an item
related to the appropriations necessary to meet the contractual obligations under a
Revenue Sharing Agreement. This continuance was to allow staff to answer a number of
questions raised in relation to the funding sources for the obligations. This memorandum
will provide the information requested.
A primary staff recommendation and previously adopted Council policy for this
transaction was not to impact the General Fund. The recommended actions in the March
2, 1998, Request for Council Action were consistent with the transaction approved by the
City Council on May 19, 1997. The structure of the transaction approved conformed to
the direction provided by the City Council in closed session on March 4, 1996
(Attachment 1) and subsequently as part of a Request for Council Action approved on
March 18, 1996 (Attachment 2) . The parameters established by the City Council for this
transaction, and which guided staffs negotiations and documentation of the transaction,
was to utilize only new development fee revenues produced by the project as the funding
source for the tennis court reimbursement.
Consistent with the development processing and impact fee revenue estimates for the
project, as illustrated in the Home Depot Development Fee Revenue Schedule
(Attachment 3), the first source of funds for the reimbursement was the $130,000 in fees
which flowed into the City's General Fund. The remaining $255,000 of the reimbursement
was to be an interfund loan from the Traffic Impact Fee Fund to the General Fund. As
illustrated, the Traffic Impact Fees for the project was the single largest fee for the project
&vid/memos/hhuhsdS.doc
and the only fee category which would make the interfund loan with out having to make
the loan from multiple funds. In addition, this was not the full amount of the Traffic
Impact Fee, and therefore a portion of the fee did flow immediately into the Traffic Impact
Fee Fund.
It is important to note that only the Council action based on the March 19, 1997, RCA
defined the funding source for the contractual obligations. The City is not restricted by its
contract with the Huntington Beach Union High School District as to what sources can be
used to fund the tennis court reimbursement.
Attachments:
Attachment 1 Excerpts from Closed Session Materials
Attachment 2 March 18, 1996 RCA
Attachment 3 Home Depot Development Fee Revenues
david/memos'hbuhsd$.doc
0
0
Excerpts from Closed Session Materials
. .. .....
...... .... . ......... .... .. . ... .........
.. . .. .. ...... .. .
............ATTACHMENT
.............................. ................ .. ...... ...... #.... ...... .'I. ... ....
....................................
.. ..... .....
.............
y
City's Goals:
• Receipt of firs new revenues.
• Reimbursement of up -front funds from new
revenues.
• Increased revenues from both sites
(existing locale & new).
• Linked to tangible public improvements.
School Disty-ict's Goals:
• Guaranteed revenue stream/cash-flow.
• Long-term new revenue stream.
• Amount up front to offset costs.
School District's Parameters
r
* Cash up front ($500,000)
* Guaranteed annual payment ($15,000 - $25,000)
* 16.5% of net increase on an annual basis (or approximately 25% of net increase
between guarantee and percentage payment, excluding cash).
City's Initial Parameters
* City receives $50,000 increase in net about base.
* School District receives up to next $50,000 in net increase above base.
* Payment tied to public improvements.
City's Current Ideas
* No existing funds to be committed or used.
* City receives first $25,000 increase in net above base.
* City advances District $384,000 (which is NPV of $25,000/year, 30 years at 5%).
* Advance is made through a portion of the traffic impact fees being returned to District.
* Amount owed the traffic impact fee account paid by City over time by the City
keeping the School District's first $25,000 share of increase above the base.
* District receives the next 8.5% of net above the base as an annual payment if net above
the base exceeds $50,000.
1Ved ineterise
`$ O,UQO ;
lOq,0 0
$200,000....
.. .......
$300 00
To City General Fund
25,000
25,000
25,000
25,000
City Keeps-DWrlct's Guaraanteed
25,Q00
25,00f1
- 25,aQ0
25,Q(lQ ;
Share
District's Annual 8.5% Payment
0
8,500
17,000
25,500
Remainder tQ City General Fund
::..
0:
41,500
158,000
224500
RCA dated March 18, 1996
Council/Agency Meeting Held: 3--4-7�
Deferred/Continued to:
pproved ❑ Conditionally Approved ❑ Denied
City Clerk's Siffhature
Council Meeting Date: March 18, 1996
Department ID Number: ED 96-24
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator ,
PREPARED BY: DAVID C. BIGGS, Director of Economic Development
SUBJECT: Proposed Lease/Sublease with Huntington Beach Union High
School District
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The City has been working with the Huntington Beach Union High
School District to facilitate commercial development on a portion of the Ocean View High
School/Wintersburg site and the development of recreational facilities of benefit to the
community. Staff members of the City and School District have developed a conceptual
structure for revenue sharing from the site and now seek City Council -conceptual approval
of the proposed transaction.
Funding Source: New sales tax and fee revenue to be generated by the proposed
commercial development,
Recommended Action: Motion to:
Direct staff to develop the legal documentation necessary to implement the proposed
structure outlined in Attachment 1, and return to the City Council for final approval at a future
meeting.
Alternative Action(s):
1) Direct staff to pursue an alternative structure; or
2) Decline to participate with the School District in the proposed commercial and
community recreational elements.
RECEIVED -
MAR 2 01996 �J
1�
.,
CRARTAA i7l'4T CF
ECONONINC DEELORl 42tgj-
REQUIRT FOR CITY COUNCIL AC`IN
MEETING DATE: March 18, 1996 DEPARTMENT ID NUMBER: ED 96-24
Analysis: The Huntington Beach Union High School District has been pursuing the
development of a surplus portion of the Ocean View High SchoolMiintersburg site which
includes the Golden West frontage of the site from Warner to the southern boundary of the
property. The School District has already secured a residential General Plan. and zoning
designation for a portion of this site. However, the City has encouraged the School District
to consider commercial development on the site, since this site is one of no more than four
or five good sites for retail development.
As such, the School District solicited proposes for retail development on this site and has
selected Home Depot to develop the property on a long-term ground lease. However,
commercial development may not provide the highest return to the School District for the use
of its property, nor allow for the development of ten lighted tennis courts proposed for a
portion of the Ocean View High School campus.
In order to bridge this gap and ensure the achievement of City goals for the site, which
include new revenues to the City and the development of community recreational facilities, it
is proposed that the City share some of the new revenues generated by the site with the
School District.
The move of Home Depot from its current location at Goldenwest and Edinger is expected to
result in additional sales tax revenue from Home Depot above the current base. Further,
replacement uses at Home Depot's current location will result in additional sales tax revenue
above the current base. In addition, Home Depot will pay a variety of fees to the City for the
development of its new location.
The proposed structure is outlined in Attachment No. 1. Part 2, the annual revenue sharing,
will be effectuated through the City leasing that portion of the Ocean View High School
campus on which the tennis courts are developed from the School District for a period of 20
years, with the lease payment contingent upon the increased sales taxes above the base
being generated. The City would sublease the tennis courts back to the School District for
$1 /year.
Should the City Council conceptually approve the proposed transaction, staff will work with
the School District to finalize the legal documentation for the transaction and return to the
City Council at a future date for final approval of the revenue sharing structure.
Concurrently with this process, the School -District and Home Depot will be finalizing the
ground lease and seek the necessary entitlements to proceed with the development.
Environmental Status: NIA
RCA96-24,DOC -2- 03/06/96 3:28 PM
RECPmEST FOR CITY COUNCIL AAON
MEETING DATE: March 18, 1996 DEPARTMENT 1D NUMBER: ED 96-24
A tachment(s):
1. outtine of Proposed Structure.
RCA96-24.DOC
-3-
03106196 1:53 PM
0 0
�11
i
Part 1
Cash Advance
• City advances $385,000 in cash from fees generated by the
retail development towards cost of constructing tennis
courts.
• City retains first $50,000 of annual net increase in sales tax:
$25,000 General Tund Revenue Stream-
$25,000 Nominal "Repayment" for Advance
6•
Part 2
Annual Payment
Formula A
ANIST less than $305,000 there will be a 8.5% annual payment* as follows:
Calculation: Example Al: Exam le A2•
ANIST $ 51,000 $ 100,000
Annual Payment 4,335 8,500
Distribution:
city
School District
city
* for 20 years.
$ 50,000
1,000
0
$ 50,000
8,500
41,500
4--
a
Part 2
Annual PaMent
Formula B
ANIST more than $305,000 there will be a annual paymentI` calculated at 20%
less a $25,000 deduction as follows:
Calculation: Example B1_: Example B2:
ANIST $ 306,000 $ 400,000
20% Amount 61,200 80,000
Deduction 25,000 25,000
Annual Payment 36,200 55,000
Jlistribution:
City $ 50,000 $ 50,000
School District 36,200 55,000
City 219,800 295,000
* for 20 years.
(g:d.vidlprojectslsehooislcchome.doc)
JT.
Home Depot Development Fee Revenues
.... ..... ... ........ .... ...... .....
................. .. T. ........................... .......................
r7 i
. ......... .
o,
... .. .. .. ..... .......... . .. .. . ..... .. ..... ..
NT
...... ........... ..... ................ .. .
............. ........... ........
3/6/98
General Fund
Community Development
• Plan Review & Permit Fees $ 34,148.91
• Entitlement Fees 15,280.00
Fire Plan Review & Permit Fees 18,564.00
Public Works Plan Review & Permit Fees 62,605,00
$ 130,597.91
Water Fund $ 17,850.90
Drainage Fund 55,000.00
Library Fund 25,200.00
Sewer Fund 7,000.00
Traffic Impact Fund 476,700.00
Other Agencies
• State Conservation 1,372.62
• Schools 45,640.00
• Sanitation District 63,450.00
$ 110,462.62
Total City Revenue: $ 712,348.81
TOTAL ALL FEES: 1 822.811.43
projects: schools:hmdptrev
4W1 9-
Jj I!` CITY OF HUNTINGTON BEACH
z, INTER -DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
TO: RAY SILVER, ACTING CITY ADMINISTRATOR
FROM: ROBERT J. FRANZ, DEPUTY CITY ADMINISTRATOR
SUBJECT: FIS
DATE: MARCH 10, 1998
The City Council previously approved the use of $255,000 of Home Depot
project traffic impact fees to pay a portion of the cost of building tennis courts at
Ocean View High School. The balance of the $385,000 cost for the tennis courts
comes from Home Depot project building fees. A proposal is being considered
by the City Council to use General Fund reserves instead of traffic impact fees
for the tennis court costs. If thi§ proposal is approved the General Fund reserves
would bQPreduced by $255,0 to $5,577,653.
Robert J. Franz i
Deputy City Administrator
RJF:bpo
30728.01 3/10/98 5:01 PM
. tis9836 0
:Adopted :Current: ;
Fund Balance`= Gerier4l Funit .. Bridget Estlmate
Beginning Fund Balance 1011197 (Est)
$5,100,000
$7,884,000
Plus Estimated Increased Revenue
1,590,500
Plus One Time Revenue (Estimated)
1,358,780
Less Approved Budget Amendments
(2,560,627)
Less Labor Contingencies
(610,000)
Less Self -Insurance Transfers
(1,800,000)
Less Pending FIS's
(30,000)
Less FIS 98-36
(255,000)
Estimated 9/30/98 Balance
$5,100.000
$5,577,653
Estimated General Fund Balance at September 30, 1998
•_fix �.I!~x�'-_-�F1�•.�:,::+r�
$6.000,000 I x E y( ^
ss,00a,000
1
$5,832,653
$4,500.000 -
i i
$4,000,000
$5,100,000
$3,500,000
$3,000,000
ADOPTED BUDGET CURRENT ESTIMATE
G:I6ACCTG1 F159798.XI.5]Tis9838
Page 1
0
CITY OF HUNTINGTON BEAVORa FROM -QAU Al&r
EA PART OFTHE R CQRDATT
Interoffice Communication o°UNOIOFFICE'OFOTHECI CLE K r
, CITY CL
Economic Development Department CONNIE BROCKWAYERK
1-0: Honorable Mayor and City Council Members
VIA: Ray Silver, Acting City Administrator
FROM: David C. Biggs, Director of Economic Development
DATE: March 16, 1998
SUBJECT: ALTERNATIVE ACTION FOR AGENDA ITEM F-I
No alternative action is outlined in the Request for Council Action for this item. Given
the discussion at the March 2, 1998, City Council meeting, the following Alternative
Action is presented:
Motion to Appropriate $385,000 for the tennis court reimbursement from the
General Fund balance.
A Fiscal Impact Statement from Deputy City Administrator/Administrative Services on
the impact of this alternative action has been included in the supplemental information
provided with the Agenda packet.
david/me mos/rcalG 16.doe
CITY OF HUNTINGTON BEACH
tNTERDEPARTIMENTAL CO, IN4UNtCAT[ON
TO: Daryl D. Smith, Acting Director of Public Work-`
FROM: Robert E. Eichblatt, City Engineer W
SUBJECT: Traffic impact Fee Priority List
DATE: March 11, 1998
Pursuant to Ray's request, the following is our current priority list for the expenditure of
Traffic Impact Fees:
1. Seapoint Street Extension to PCH
2. Edwards Street, between Ellis and Talbert
3. Ellis Avenue, North Side, between Goldenwest and Edwards
4. Hoover/Gothard Extension
5. Ellis, east of Beach
6. Garfield, Huntington to Florida
7. Ward, Garfield to Yorktown
8. Heil, Beach to Silver
-`
Qej
CM
a, -c m
REE
CD
MO
n
+
r_
tifldav#30730
0 0
RECEIVED FROM
AND MADE A PART OF THE4qECORD AT THE
COUNCIL MEETING OF
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY, CITY CLERK
CITY OF HUNTINGTON BEACH
LONG TERM LOANS/ADVANCES (INTERFUND)
SEPTEMBER 30, 1997
Loaned From To Amount
General Fund
Gas Tax
Sewer
Drainage
Park Acquisition & Development
Capital Improvement
Public Financing Authority
Low Income Housing
Water
Total Long Term Loans/Advances to Agency
Water Fund
Traffic Impact Fee
Park Acquisition & Development
Park Acquisition & Development
Total Other Funds
Total All Funds
Redevelopment Agency $ 25,026,000
Notes
Redevelopment Agency
979,000
Redevelopment Agency
250,000
Redevelopment Agency
475,000
Redevelopment Agency
3,478,000
Redevelopment Agency
356,000
Redevelopment Agency
28,644,000 Bond Debt
Redevelopment Agency
2,095,000
Redevelopment Agency
2,310,000
63,613,000
Pier Fund 3,587,000
General Fund 260,000
Library Service fund 290,000
Emerald Cove 243,000
4,380,000
$ 67,993,000
0030854.01 03/16/98 5:08 PM
f
ti
Page 12 - Council/Agency Agenda - 05/19/97 • (12)
F. Administrative Items
F-1. (City Council) Revenue Sharina Aareement Between Citv Of Huntington Beach &
Huntington Beach Union High School District & Reciprocal Use Agreement Between City
And Huntington Beach Union Hicilh School District For Use Of Tennis Courts At Ocean
View Hiah School & Fund Appropriation/interfund Loan (600.10)
Communication from the Community Services Director transmitting legal documentation
necessary to implement revenue sharing with the Huntington Beach Union High School District in
order to facilitate commercial development and additional recreational facilities on a portion of
the Oceanview High School/Wintersburg site. A Revenue Sharing Agreement has been
developed which will memorialize the proposed revenue sharing structure.
Recommended Action:
1. Approve and authorize execution by the Mayor and City Clerk of the Revenue Sharing
Agreement between the City of Huntington Beach and Huntington Beach Union High School
District for Use of Tennis Courts at Oceanview High School and Fund/Appropriation/interfund
Loan.
and
2. Appropriate $385,000 for the tennis court reimbursement in the form of $130,000 in
Unanticipated General Fund fee revenue; and an interfund loan of $255,000 from the
Traffic Impact Fee Fund to the General Fund with said interfund loan to be repaid on an
annual basis from the first $25,000 in increased sales tax revenue from the relocated
Home Depot until fully amortized at 6% interest pursuant to Attachment No. 4 in the
Request for Council Action dated May 19, 1997.
and
3. Approve and authorize the Reciprocal Use Agreement between the city and the
Huntington Beach Union High School District for use of the tennis courts at Ocean View
High School and authorize its execution by the Mayor and City Clerk.
[approved 1, 2 & 3 -- 7-0]
F-2. (Redevelopment Aaencv) Professional Services Contract - Between The
Redevelopment Agency Of The City Of Huntington Beach And Arter & Hadden,
Attorneys At Law For Legal Services - Bloomy. Redevelopment Age
Communication from the City Attorney transmitting a Professional Services Contract
between the Redevelopment Agency of the City of Huntington Beach and Arter &
Hadden, Attorneys at Law for Legal Services.
Recommended Action:
1. Approve Agreement for Legal Services between the Agency and Arter & Hadden,
Attorneys at Law, and authorize its execution by the Chairman, Executive Director
and attested by the Clerk.
[Approved 7-0]
(Continued On Next Page)
(12)
Council/Agency Meeting Held:
Deferred/Continued to:,y��
Q'Approved ❑ Conditionally Approved ❑ Denied
City Cle 's Signature
Council Meeting Date: May 19, 1997
Department ID Number: ED 97-16
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator-,�;)Q,/
PREPARED BY: DAVID C. BIGGS, Director of Economic Development
SUBJECT: Revenue Sharing Agreement with Huntington Beach Union High
School District
Statement of Issue, Funding Source, Recommended Action, Alternative Action1s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: On March 18, 1996, the City Council directed staff to develop the
legal documentation necessary to implement revenue sharing with the District in order to
facilitate commercial development and additional recreational facilities on a portion of the
Oceanview High SchoolANintersburg site. A Revenue Sharing Agreement has been
developed which will memorialize the proposed revenue sharing structure.
Funding Source: Future sales tax revenues generated by the development for the annual
revenue sharing. Fees and charges estimated to be more than $600,000 to be paid at the
time of development for the $385,000 reimbursement to the District for the cost of ten tennis
courts. A Fiscal Impact Statement is attached.
Recommended Action: Motion to:
1) Approve the Revenue Sharing Agreement with the Huntington Beach Union High School
District and authorize its execution by the Mayor and City Clerk, and;
2) Appropriate $385,000 for the tennis court reimbursement in the form of $130,000 in
unanticipated General Fund fee revenue; and an interfund loan of $255,000 from the Traffic
Impact Fee Fund to the General Fund with said interfund loan to be repaid on an annual
basis from the first $25,000 in increased sales tax revenue from the relocated Home Depot
until fully amortized at 6% interest pursuant to Attachment 4.
3) Approve the Reciprocal Use Agreement with the Huntington Beach Union High School
District and authorize its execution by the Mayor and City Clerk.
Alternative Action(s): Approve the Revenue Sharing Agreement with modifications as
directed by Council.
-F—c
R�QUEST FOR COUNCIL ACTION
MEETING DATE: May 19, 1997 DEPARTMENT ID NUMBER: ED 97-16
Analysis: The proposed Revenue Sharing Agreement memorializes the revenue sharing
formulas conceptually approved by the City Council on March 18, 1996. A copy of the
March 18, 1996, Request for Council Action is attached (Attachment 1). Rather than the
originally anticipated Lease/Sublease, a simpler deal structure has been developed as
evidenced by the Revenue Sharing Agreement (Attachment 2). The approval of the
Revenue Sharing Agreement has been timed to occur at the same Council meeting as the
entitlements for the development.
The Revenue Sharing Agreement has two basic provisions. First, the City will reimburse the
District for $385,000 in costs associated with the construction of at least ten tennis courts at
Oceanview High School. In exchange, the City will have reciprocal use of the tennis courts
for the City's recreational programs and the general public. The future public use of the
tennis courts is memorialized through the proposed Reciprocal Use Agreement (Attachment
3). This reimbursement is, in effect, an advance of future revenue sharing.
Second, the City will share with the District a portion of the annual net increase in sales tax
which results from the relocation and expansion of Home Depot. The annual payment will
be calculated based on the net increase in sales tax from the relocated Home Depot and
the sales tax from the replacement users at the former Home Depot site. Since the
relocation of Home Depot, in effect, creates retail space which can be made available to new
retailers, this ensures that any payments made to the District truly reflect the impacts of the
new facility. The payment to the District will be made from the sales tax revenues
generated by the Home Depot use on the District's property. A detailed explanation of the
revenue sharing formulas are set forth in Exhibit F to the Revenue Sharing Agreement.
The proposed Revenue Sharing Agreement incorporates indemnification language which
requires the District to defend and indemnify the City in the event the Revenue Sharing
Agreement is subject to a legal challenge.
The Board of the District approved the Revenue Sharing Agreement at its meeting of May
13th. The approval of the entitlements and the Revenue Sharing Agreement by the City
Council at this meeting will enable the required field relocation to commence in June with the
construction of the new Home Depot to begin in the fall. The City will benefit by the
development of a major retailer at a key intersection with increased visibility in a facility
which meets contemporary retailing standards with the added potential to generate sales
tax. In addition, as discussed above, Home Depot's existing approximately 120,000 square
foot building will be freed -up for replacement retailers. Furthermore, the City and the
general public will benefit from the development of ten tennis courts. Finally, The District
will use the revenues from the ground lease with Home Depot and the sales tax sharing
revenues to enhance the high school educational system and facilities in Huntington Beach.
A portion of the Traffic Impact Fees to be paid by the Developer will be used to reimburse
the High School District for the construction of ten tennis courts. The payback period to the
Traffic Impact Fee Fund is anticipated to be 17 years based upon a fixed interest rate of 6%
RCA97-16.00C -2- 05/13/97 2:49 PM
R�UEST FOR COUNCIL ACTIR
MEETING DATE: May 19, 1997
DEPARTMENT ID NUMBER: ED 97-16
and a $25,000 annual payment from the increased sales tax which will result to the General
Fund. Traffic Impact Fee Fund revenue which is accruing from this development, which may
not have. -otherwise been forthcoming, will not be immediately available for the construction
of traffic related improvements. However, the benefits from the investment is believed by
staff to outweigh any potential impacts to the scheduling of Traffic Impact Fee funded
improvements.
Environmental Status: Not applicable for the Revenue Sharing Agreement. The
entitlement package for the development project has been assessed by an Environmental
Impact Report (EIR 96-3).
Attachment(s):
1 RCA from March 18, 1996
2 Revenue Sharing Agreement
3 Reciprocal Use Agreement
4 Repayment Schedule
5 Fiscal Impact Statement
RCA97-16.DOC
-3-
05/13/97 2:49 PM
0 0
RCA Dated March 14, 1997
Council/Agency Meeting Held: 3 4 - 7b
Deferred/Continued to:
pproved ❑ Conditionally Approved ❑ Denied
City Clerk's ature
Council Meeting Date: March 18, 1996
Department ID Number. ED 96-24
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator
PREPARED BY: DAVID C. BIGGS, Director of Economic Development
SUBJECT: Proposed Lease/Sublease with Huntington Beach Union High
School District
Statement of Issue, Funding Source, Recommended Action, Alternative Action{s}, Analysis, Environmental Status, Attachment(s)
Statement of Issue: The City has been working with the Huntington Beach Union High
School District to facilitate commercial development on a portion of the Ocean View High
School/Wintersburg site and the development of recreational facilities of benefit to the
community. Staff members of the City and School District have developed a conceptual
structure for revenue sharing from the site and now seek City Council conceptual approval
of the proposed transaction.
Funding Source: New sales tax and fee revenue to be generated by the proposed
commercial development. _
Recommended Action: Motion to:
Direct staff to develop the legal documentation necessary to implement the proposed
structure outlined in Attachment 1, and return to the City Council for final approval at a future
meeting.
Alternative Action(s):
1) Direct staff to pursue an alternative structure; or
2) Decline to participate with the School District in the proposed commercial and
community recreational elements.
RECEIVED -
MAR 2 01996 VC
D`PARTMENIT OF
ECONU101iC DEVELOPMENT
REQUT FOR CITY COUNCIL AC` 04
MEETING DATE: March 18, 1996 DEPARTMENT ID NUMBER: ED 96-24
Analysis: The Huntington Beach Union High School District has been pursuing the
development of a surplus portion of the Ocean View High SchoollWintersburg site which
includes the Golden West frontage of the site from Warner to the southern boundary of the
property. The School District has already secured a residential General Plan and zoning
designation for a portion of this site. However, the City has encouraged the School District
to consider commercial development on the site, since this site is one of no more than four
or five good sites for retail development.
As such, the School District solicited proposes for retail development on this site and has
selected Home Depot to develop the property on a long-term ground lease. However,
commercial development may not provide the highest return to the School District for the use
of its property, nor allow for the development of ten lighted tennis courts proposed for a
portion of the Ocean View High School campus.
In order to bridge this gap and ensure the achievement of City goals for the site, which
include new revenues to the City and the development of community recreational facilities, it
is proposed that the City share some of the new revenues generated by the site with the
School District.
The move of Home Depot from its current location at Goldenwest and Edinger is expected to
result in additional sales tax revenue from Home Depot above the current base. Further,
replacement uses at Horne Depot's current location will result in additional sales tax revenue
above the current base. In addition, Home Depot will pay a variety of fees to the City for the
development of its new location.
The proposed structure is outlined in Attachment No. 1. Part 2, the annual revenue sharing,
will be effectuated through the City leasing that portion of the Ocean View High School
campus on which the tennis courts are developed from the School District for a period of 20
years, with the lease payment contingent upon the increased sales taxes above the base
being generated. The City would sublease the tennis courts back to the School District for
$1 /year.
Should the City Council conceptually approve the proposed transaction, staff will work with
the School District to finalize the legal documentation for the transaction and return to the
City Council at a future date for final approval of the revenue sharing structure.
Concurrently with this process, the School ' District and Home Depot will be finalizing the
ground lease and seek the necessary entitlements to proceed with the development.
Environmental Status: NIA
RCA96-24.00C -2- 03/06/96 3:28 PM
REAST FOR CITY COUNCIL MOON
MEETING DATE: March 18, 1996 DEPARTMENT ID NUMBER: ED 96-24
r
Attachment{s]:
1. Outline of Proposed Structure.
RCA96-24.DOC
-3-
03/06196 1:53 PM
0
Revenue Sharing Agreement
ATTACHMENT.# 2�.. ..... .
�