HomeMy WebLinkAboutHuntington Beach Union High School District - 1989-06-19to
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C,Ai G:!\'4L.
AGREEMENT BY �CHD BETWEEN
THE HUNTINGTON BEACH HIGH SCHOOL DISTRICT
AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY
PERTAINING TO AMENDMENT NO. ONE TO
THE OAKVIEW REDEVELOPMENT PLAN
This Agreement is made and entered into this / 1 "4day
of '�1989 by and between the Huntington Beach
Nigh School. District (hereafter referred to as the "District')
and the Huntington Beach Redevelopment Agency (hereinafter
referred to as the "Agency").
RECITALS
WHEREAS, the Agency is a redevelopment agency existing
pursuant to the provisions of the C-W unity Redevelopment Lau,
(California Health and Safety Code Section 33000, et sue.)
which has been authorized to transact business and exercise the
pcwers of a redevelopment agency pursuant to action of the City
Council of the City of Huntington Beach (the "City Council");
and
WHEREAS, in November 1982, the City Council adopted
Ordinance No. 2582 approving a Redevelopment Plan (the "Plan")
for the Oakview Redevelopment Project (the "Project"); and
WHEREAS, the Agency has formulated Amendment No. One to the
Oakview Redevelopment Project ("Amendment No. One").
WHEREAS, Amendment No. Ore, contains provisions to increase
the limitation for the distribution and allocation of property
tax revenues derived from property located within the Oakview
Redevelopment Project Area (the "Project Area") to the Agency
pursuant to California Health and Safety Code Section 33670(b)
(hereafter referred to as "Added Tax Increment"); and ' •
WHEREAS, the Project Area is located within the District's
boundaries and is served by the District, and
WHEREAS, meetings have been held by representatives of the
District and representatives of the Agency to discuss the
fiscal impact of the Amendment No. One on the District; and
WHEREAS, pursuant to California Health and Safety Code
Section 33401, th'e Agency is authorized to compensate affected
taxing entities, including the District, for any amounts of
money which the Agency determines are appropriate to alleviate
any financial burden or detriment caused to the District by the
implementation of Amendment No. One; and
WHEREAS, Section 33445 of the Health and Safety Code
provides authorization for the Agency, with the consent of the
City Council, to pay all or part of the value of the land and
the cost of the installation and construction of certain
buildings, facilities, structures, or other improvements owned
or to be owned by the District (hereinafter the "District
Facilities"), whether within or without the Project hrea but
within the territorial jurisdiction of the Agency, upon a
determination by the City Council and the Agency that such
buildings, facilities, structures, or other improvements are of
benefit to the Project Area or the immmediate neighborhood in
which the Project Area is located and that no other reasonable
means of financing such buildings, facilities, structures, or
other improvements are available to the community (the
"community" being defined in the Community Redevelopment Law as
the City of Huntington Beach)•
WHEREAS, the purpose of this Agreement is to provide for
the appropriate payments to be made by the Agency to the
District in order to: (1) alleviate all significant financial
burden or detriment caused to the District by the tax
allocation provisions of Amendment No. One; and (2) assist the
District by paying for all or part of the cost of certain
District Facilities which are of benefit to the Project Area or
the immediate neighborhood in which the Project Area is located
and for which no other reasonable means of financing is
available to the community.
WHEREAS, for the above reasons, and to amicably resolve any
differences regarding Amendment No. One, the parties hereto
enter into this Agreement.
NOW, THEF:EFORE, in consideration of the foregoing and the
mutual covenants and conditions contained herein, the parties
hereto agree as follows:
Section 1. Definitions
The words and terms in this Agreement, unless a different
meaning clearly appears from the context, shall have the
meanings set forth as follows:
(a) "Added Tax Increment" shall mean property tax revenues
in excess of Three Hundred Fifty Thousand Dollars ($350,000)
per fiscal year attributable to increases in the assessed
valuation of property located within the Project Area above the
valuation shcwn on the 1982-1983 assessment roll, which tax
revenues are allocated and paid to the Agency pursuant to
California Health ana a e y oae Section 33670(b) in
accordance with Amendment No. One .
06/04/89
4743n/2460/034 -2-
(b) "Agency" shall mean the Huntington Beach Redevelopment
Agency.
(c) "City" shall mean the City of Huntington Beach, a
municipal corporation.
(d) "Community Redevelopment Law" shall mean Part 1 of
Division 24 of the Health 6 Safety Code (commencing with
Section 33000).
(e) "District" shall mean the Huntington Beach Hich School
District, and its successors.
(f) "District Share" shall mean that portion of the Added
Tax Increment allocated to and received by the Agency pursuant
to Health and Safety Code Section 33670(b) resulting fro-m the
general purpose tax levy of the District.
(g) "Existing Increment Flow" shall mean the full amount
of Property Tax Increment allocated and paid to the Agency in
accordance with the -Plan, exclusive of any an all Added Tax
Increment so allocated in accordance with Amendment No. One.
(h) "Fiscal Year" shall Crean the period from July l-to and
including the following June 30.
(i) "ordinance" shall mean Ordinance No. Zoo (the
ordinance approving Amendment ATo. One).
(j) "Project Area" shall mean that area so designated in
Amendment No. One as approved by the Ordinance.
M "Property Tax Increment" shall mean the full amount of
tax revenues attributable to increases in assessed valuation
above the valuation shown on the 1982-1983 assessment roil,
which tax revenues are allocated and paid to the Agency .
pursuant to California Health and Safety Code Section 33670(b)
from the Project Area.
(1) "Term" shall mean the period of time Amendment No. One
remains in effect,
Section 2. ' PEy:nent by Agency to District
C
(a) Subject to the provisions of Section
3 of
this
Agreement, for each Fiscal Year during the
Term in
which the
'
Agency receives an allocation and payment
of Property Tax
Increment, the Agency shall deposit into a
special
fund of the
^�
Agency pursuant to subdivision (c) of this
Section
2, fifteen
percent (15%) of the District Share. The
District
and the
.
Agency agree that the base assessed valuation
used
in computing
1
such payments shall be established by the
assessment roil for
the 1982-83 Fiscal Year.
06/04/89
4743n/2460/034 -3-
(b) In addition to the foregoing, for each Fiscal Year
during the Term, the Agency acrees to deposit into a special
fund of the Agency pursuant tc subdivision. (c) of this
Section 2 an amount equal to all of the Added Tax Increment
allocated and paid to the Age cn y for the applicable Fiscal Year
pursuant to subdivision (b) of Section 33670 which are
attributable to: 1) i:4z-eases in the rate of tax imposed for
the benefit of the District which levy occurs after the tax
? year in which the Ordinance becomes effective, and 2) increases
' in the assessed valuation of -he taxable property located in
the Project Area above the valuation shown on the 1982-1983
assessment roll pursuant to subdivision (a) of Section 33676,
which are, or otherwise would be, calculated annually pursuant
subdivision M of Section 110.1 of the Revenue and Taxation
L33676(a)(1)
de. Such. amounts shall be limited to Added Tax Increment
ich would have been allocated to the District after adopting
resolution in accordance with Health and Safety Code Section
676(b) electing to receive payments pursuant to Sections
and 33676(a)(2), to the extent the then, applicable
law recuires such allocation to an affected taxing agency which
has made the election under Section. 33676(b). The District has
not elected to receive payments pursuant to Sections
33676(a)(1) or 33676(a)(2) of the Health and Safety Code and
payments made pursuant to this Section 2(b) shall be in lieu of
payments pursuant to said Sections 33676(a)(1) and
33676(a)(2). In the event any revenues are received by the
District pursuant to Sections 33676(a)(1) or 33676(a)(2), the
amounts to be deposited by the Agency on behalf of the District
pursuant to this Agreement shall be reduced by an amount equal
to sums received pursuant to Section 33676(a)(1) and
33676(a)(2), with the reduction to be made at the earliest
feasible tire as determined by the Agency.
(c) Subject to Section 3 below, payments to be deposited
by the Agency on behalf of the District pursuant to this
Agreement shall be placed in a special fund of the Agency to be
utilized solely for the purposes permitted under Section'4.
The District covenants that it shall expend revenues received
by the District pursuant to this Agreement only within the
corporate limits of the City and only in strict conformity with
this Agreemment .
(d) The Agency agrees that it will indemnify and hold the
District harmless from any and all loss of District taxes
caused by implementation of tax increment financing in the
Project Area should the State cf California fail to provide
compensating sums pursuant to Education Code Section 42238 or
other similar or successor provisions of law.
06/04/89
4743n/2460/034 -4-
Section 3. Alternate Payment Procedure
As an alternative to the payment procedure set forth in
Section 2, the District may elect to have all payments that are
to be deposited by the Agency made in one of the following
manners:
a. to a nonprofit corporation to be formed by the
District; or
b. directly to the contractors and suppliers of the
District who are constructing capital improvements on District
Facilities as described in section 4. Should the District
elect to have the payments received as described in this
Section 3(b), the Agency shall deposit the funds into a
separate interest -bearing account on behalf of the District
(with interest accruing to said account), and the Agency shall
be entitled to withdraw from said fund all costs (including
personnel and administrative costs) in administering said
fund. The Agency undertakes no responsibility or duty with
respect to the selection of interest -bearing accounts or from
the maximizing of interest. The Agency agrees to cooperate
with the District in selecting the interest -bearing account.
Payments pursuant to Sectic:s 2 and 3 are subject to the
conditions and limitations set forth in parts (a) through (h)
of Section 6 of this Agreement.
Section 4. District Expenditure of Revenues
All funds paid by the Agency pursuant to Section 2 or 3 of
this Agreement shall be expended an capital improvement
projects selected by the District but which shall be situated
within the City. Reasonable priority will be given to
facilities of direct benefit to the community, such as library
and recreational facilities. Upon written request by the
Agency as may be made so often as the Agency shall deem
apppropriate, the District shall promptly provide without
charge a written statement accounting for the expenditure of
funds, together with any reports to state agencies pertaining
to such expenditures or the subject improvements.
Section 5. Agency Bonds
It is agreed and acknowledged by the District that the
Agency may issue bonds and assume obligations to the fullest
extent permitted by law, and that the Agency may pledge all or
any portion of the Added Tax Increment to the repayment of any
such obligations; provided that the inclusion of such a pledge
of Added Tax Increment attributable to the general purpose tax
06/04/89 _
4743n/2460/034 -5-
levy of the District shall be allowable as a first and senior
pledge only (i) with the consent of the District or (ii) upon
the payment by the Agency to the District (or the commitment by
a trustee in connection with the issuance of bonds to cause to
be annually paid) from the proceeds of such issue or other
revenues available to the Agency such revenues as would be
payable to the District in any year in which pledged revenues
would be payable to the District pursuant to this Agreement.
The District agrees that it shall promptly approve and execute
such docu-nents as are necessary or convenient to implement this
Section 5 and facilitate the issuance of bonds (or other
indebtedness) by the Agency, so long as such doc,Wmen is are
consiste.t with this Section 5.
Section 6. Conditions
Payment to be deposited by the Agency on behalf of the
District are subject to the following conditions and
limitations:
(a)- Agency's obligation under this Agreement to deposit
payments on behalf of the District is deemed to constitute "an
indebtedness" within the meaning of Health and safety Code
Sections 3367C and 33675.
(b) Agency shall deposit on behalf of the District amounts
due pursuant to this Agreement during each Fiscal Year within a
reasonable period after the Agency receives the Added Tax
Increment allotment from the County Auditor —Controller provided
that payments in relation to allotments received between July 1
and December 31, of any Fiscal Year shall be made no later than
the following February 28; and that payments in relation to
allotments received between January 1 and June 30, of any
Fiscal Year shall be made no later than the following August 30.
(c) The r.cency's obligation to make payments hereunder
shall be limited to Added Tax Increment from the Project Area
received by the Agency. In no way shall the Agency be liable
for such obligations from revenues of other redevelopment
project areasinthe City or from Existing Increment Flow or
from any other revenues. The City shall have no financial
obligation or any other obligations by virtue of this
Agreement, and shall not be responsible for the discharge of
obligations of the Agency herein.
(d) No payment shall be made by the Agency in any Fiscal
Year pursuant ;,o this Agreement if such payment would impair
any contract, obligation to service bonded indebtedness or the
refinancing of such existing indebtedness or any other existing
obligation entered into by the Agency prior to the execution of
this Agreement.
06/04/89
4743n/2460/034 -6-
(e) The Agency's obligation to make payments hereunder
shall be junior and subordinate to the Agency's obligation
under Health and Safety Code Section 33334.2.
(f) Notwithstanding any other provisions of this Agreement
to the contrary, the Agency's obligation to make payments to
the District under this Agreement in any single year shall
not: ( i ) exceed the amount of Added Tax Incr e-ent which
have been received by the District if all the Added Tax
Increment from the Project Area had been allocated to all the
affected taxing agencies without regard to the division of
taxes required by Health and Safety Code Section 33670; (ii)
violate the expenditure limitation under Article XIIIB of the
California Constitution of such entity; or (iii) be contrary to
any provision of the laws of the State of California.
(g) No payments shall be made by the Agency from the Added
Tax Increment to the District except as expressly set forth in
Sections 2 and 3 of this Agreement. The District certifies
that it has not at any time recuested and does not now request
the receipt of revenues pursuant to Health and Safety Code
Section 33676(a)(2) in connection with the Project, including,
without limitation, Amendment No. One thereto.
(h) The District shall indemnify, defend and hold harmless
the Agency from any claims, liabilities and causes of action
asserted by any third party against the Agency by reason of the
Agency's payment of funds in the manner described in Sections 2
and 3 of this Agreement.
Section 7.
Covenant Not To Sue
The District agrees and covenants that it shall not file or
participate in opposition to the Agency in any lawsuit
attacking or otherwise questioning the validity of.Amendment
No. One, the adoption or approval of such Amendment No. One,
any statement of indebtedness consistent with this Agreement,
or any of the findings or determinations made by Agency or City
Council of the City in connection with such Amendment No. One.
The District declares that it has conducted all such
investigation and study of matters pertaining to the subject
matter of this Agreement as it has deemed appropriate, and that
it has been advised at all times by counsel of its choosing.
The District finds and determines that this Agreement fully
alleviates any financial burden and detriment to the District
resulting from Amendment No. One and, except as provided
hereinbelow, forever waives its right to sub:tit a report to the
Agency, or to cause the Agency to hold a public hearing, or to
request or take other action to induce the Agency to consider
06/04/89
4743n/2460/034 -7-
amendments to the Project or Amen&ment No. One pursuant to
Health and Safety Code Section 33445.5. The District agrees
and acknowledges that the provision of the continuing
effectiveness of such waiver is a material inducement to the
Agency to approve this Agreement, and that but for such waiver
the Agency would not approve and execute this Agreement.
Notwithstanding the foregoing, the Agency agrees to reopen
negotiations with the District concerning the financial burden
or detriment to the District caused by the implementation of
Amendment No. One if the Agency constructs or contributes to
the cost of construction of more than one hundred (100) new
dwelling units in the Project Area during the Term.
In the event and to the extent tax increments are not paid
to or are withheld from the Agency by reason of the pendency of
any such cause of action, case, claim, count, action, or
complaint filed by any public or private person or entity, the
District agrees not to claim interest on any such withheld
funds. The Agency's responsibility for making any
reimbursement otherwise required by this Agreement shall accrue
and be paid to the District when and if available at the
conclusion of litigation. The time for the Agency performance
hereunder shall be excused fo= the duration of such litigation.
Section S. Entire Agreement
This Agreement constitutes the entire agreement between the
Agency and District with respect to the matters set forth
herein, and Gny changes, modifications or amendments thereto
shall be legally binding and effective only upon duly executed
written amendment hereto.
Section 19. Effective Date
This Agreement shall become effective the date last
executed below and shall continue in effect until Agency is
deactivated pursuant to Section 33141 of the California Health
and Safety Code or its successors; provided that this Agreement
shall terminate automatically and.be of no further force or
effect in the event that Amendment No. One is not adopted on or
before December 31, 1989, or in the event the adoption of
Amendmment No. One should be set aside or annulled as the result
of litigation.
06/04/89
4743n/2460/034 -$- --
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the day and year first above written.
Dated: S-�-g9 HWITINGTON BEACH HIGH SCHOOL DISTRICT
By.
ATTEST:
Approved as to form:
Dated: %-- 1 Y -$2
ATTEST:
Agency Clerk
Approved as to Form:
HUNTINGT N BEACH DEVELOPMENT AGENCY
By: �,{,CGcci
Chairman
By:
Executive Director
Z&n2
Agency Legal CouriselUe,—,,
Y]�Cofe1
ency Special Counsel
06/04/89
4743n/2460/034 -9-
Page 18 — Council/Agency Minutes — 6/5/89
A motion was made by Silva, seconded by Bannister, to schedule a study session
on the Fiscal Year 1989-90 Redevelopment 20% Housing Set —aside Budget Recon,
mendation and Implementation Plan June 19, 1989. The motion carried by the
following roll call -vote:
AYES: Green, Winchell, Bannister, Mays, Silva
NOES: None
ABSTAIN: Erskine
ABSENT: MacAllister
(Redev_glopment _Agency) _AGREEMENTS WITH TAXING - AGENCIES - APEROVED TAX
INCREMENT^REVENUE - AM ND D OAKVIEH--REDEVELOPMENT PROJECTR
The Clerk presented a communication from the City Administrator pertaining to
agreements -with taxing agencies.
A motion was made by.Green, seconded by Winchell, to approve and authorize the
Chairman and Clerk to execute agreements -to share Tax Increment -Revenue from.
the. Amended Oakview. Redevelopment Project Area between the Redevelopment
Agency. and the following Taxing agencies: Huntington Be-ach High School
District, Ocean View'Elementary School District. The Cg,Unty of Orange includ_
JnQ Harbou, Beaches.and. r n h Orange
County Deoartmgat of Education, Orange County Ve��r Control Distrist�e
motion carried by the following roll call vote:
AYES: Green, Winchell, Bannister, Mays, Silva, Erskine
NOES: None
ABSENT: MacAllister
F%LUM1%U1nu-cVn1nk2—fny_rEr►!J n��1�Ln� �SL�Cnrn�iy�n -- nurc[[1�[n�,_ NrrKuytU
RIGHARD TERZIAN - KATHERINE UM
The City'Clerk presented a communication from the=City Attorney pertaining to
the joint' proposal to provide. additional, advisory legal . opinion ..-regarding
zoning property as coastal conservation.
A motion Was made by Green, seconded by -Bannister, to approve and. authorize
execution of agreements between Richard - Terzian,-of-Adams, Duque & Hazeltine,
and .Katherine Stone, of Freilich. Stone, Eeitner & Carlisle to provide the
City -.'with a joint opinion and alternative solutions regarding Huntington :Beach
wetlands conservation' at a cost- to the City of $15,000.00, plus costs'.- The
motion carried by the following roll call vote:
AYES: Green, Winchell, Bannister, Mays, Silva, Erskine
HOES: None
ABSENT: MacAllister
RDI ANCEE9.�999_— ADOPTED — ZOO --CHANCE N0. 87-2 — HE CORNER —GO11ARg/
CENTER
The City Clerk presented Ordinance No. 2999 for Council consideration —
".AN ORDINANCE OF THE THE CITY OF HUNTINGTON BEACH AMENDING SECTION 9061 OF
THE HUNTINGTON BEACH ORDINANCE CODE TO PROVIDE FOR CHANGE OF ZONING FROM
.1L_
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