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HomeMy WebLinkAboutCC RESO 14,598RESOLUTION NO. 14, 598 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA AUTHORIZING AND APPROVING AN AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO, THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the City Council of the City of National City, by adoption of Ordinance No. 1821 on May 22, 1984, (Amendment I) added a parcel of land to the parcels of land to be acquired pursuant to the Redevelopment Plan for the National City Downtown Redevelopment Project which was adopted by City Council Ordinance No. 1762 on December 1, 1981; and WHEREAS, the City Council and the Community Development Commission propose to adopt Amendment II which would add additional parcels of land to the National City Downtown Redevelopment Project; and WHEREAS, the County of San Diego, the City of National City and the Community Development Commission of the City of National City propose an agreement pursuant to which the County would continue to receive its portion of the real property taxes for the land areas contained within Amendment I and H; and WHEREAS, the Executive Director of the Community Development Commission has participated in the formulation of said agreement and recommends its approval. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City, California that the Mayor is authorized, on behalf of the City Council, to execute an agreement between the County of San Diego, the City of National City, and the Community Development Commission of the City of National City pertaining to Amendments I and II of the National City Downtown Redevelopment Project. A copy of said Agreement is on file in the office of the City Clerk and reference is hereby made to all particulars contained therein. PASSED AND ADOPTED this 9th day, of April, 1985. ATTEST: Ion/ Campbell, Cit Clerk • AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO, TIIE CITY OF NATIONAL CITY, AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY THIS AGREEMENT is entered into on the //,2 day of 1 , 1985, by and among the County o San Diego ("County"), the City of National City ("City"), and the Community Development Commission of the City of National City ("Agency"). RECITALS: WHEREAS, by ordinance adopted May 22, 1984 (Ord. No. 1821), City and Agency adopted Amendment No. 1 to the Redevelopment Plan for the National City Downtown Redevelopment Project; and WHEREAS, Agency has initiated proceedings for adoption of Amendment No. 2 to the Redevelopment Plan for the National City Downtown Redevelopment Project; and WHEREAS, both Amendment No. 1 and proposed Amendment No. 2 include a provision authorizing the allocation to the Agency property taxes levied by all taxing agencies on the increased assessed valuation on property within the project area between the assessed valuation of said property on the 1984-85 assessment role and the assessed valuation thereon shown on each assessment role subsequent thereto; and WHEREAS, Agency is authorized by Section 33401 of the Health and Safety Code to compensate the affected taxing entities for: (a) Any amounts of money which Agency determines is appropriate in the alleviation of any financial burden or detriment caused by the redevelopment project, and/or (b) Amounts of money in lieu of taxes which would otherwise be paid on property within the project area. WHEREAS, the parties herein agree that the financial detriment will be offset by the amount set forth herein. WHEREAS, the parties wish to enter into this agreement to alleviate any financial burden which may be caused to County by redevelopment activities in Amendments No. 1 and No. 2 to the Redevelopment Plan for the City of National City Downtown Redevelopment Project. 3-26-85 -2- COVENANTS NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties agree as follows: ARTICLE I. DEFINITIONS Section 1.01. 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) "Agency" shall mean the Community Development Commission of the City of National City. (b) "Base Roll" means the tax roll for the 1984-85 Fiscal Year as equalized on August 20, 1984. (c) "Bonds" shall mean any bonds, notes, interim certificates, debentures or other obligations issued by the Agency, pursuant to Article V of Part 1 of Division 24 of the Health and Safety Code (commencing with Section 33640). (d) "Community Redevelopment Law" shall mean Part 1 of Division 24 of the Health and Safety Code (commencing with Section 33000). (e) "County" shall mean.the County of San Diego, a political subdivision, and the County Library System, on whose behalf a special property tax is assessed and collected by County officials. (f) "City" shall mean the City of National City, a Municipal Corporati•en. (g) "County Share" shall mean that amount payable to the County hereunder for each Fiscal Year as determined in accordance with Section 2.03 of this agreement. (h) "Fiscal Year" shall mean the period from July 1 to and including the following June 30. (i) "Indebtedness" shall mean any principal of and interest on loans, moneys advanced to, or other indebtedness (whether funded, refunded, assumed or otherwise) incurred by the Agency to finance or refinance, in whole or in part, the implementation of the Redevelopment Plan. -3- (j) "Project Area" shall mean as follows: (1) Project Area, Amendment I is Assessor's Parcel No. 563-161-46 shown on Exhibit "A" attached hereto and incorporated herein. (2) Project Area, Amendment II, includes the following Assessor's Parcel Numbers: 563-161-44, 563-162-30, 563-162-29, 563-162-28, 563-162-44, 563-162-25, 563-162-49, 563-162-50, and 563-162-51. Said parcels are also shown on Exhibit "A" hereof. (3) Project Area, Amendments I and II includes all of Grove Way abutting said parcels included in both Amendment I and II as shown on Exhibit "A" hereof. (4) All of said parcels in Amendment I and II as enumerated hereinabove and Grove Way abutting said parcels, taken together, shall mean "Project Area" as used in this Agreement. (5) The financial consequences of this Agreement shall apply solely and exclusively to the Project Area as hereinabove defined in this subsection (j). (k) "Redevelopment Plan" shall mean the Plan entitled "Redevelopment Plan to the National City Downtown Redevelopment Project" prepared by the Agency. (1) "Redevelopment Project" shall mean the National City Downtown Redevelopment Project. (m) "Tax Increment" means that portion of property taxes resulting from the increase in assessed valuation in the Project Area over the Base Roll, as provided in Section 33670 of the Health and Safety Code. As used herein in reference to payments to be made by the Agency, Tax Increment refers only to those revenues as described in this subsection (n) of Section 1.01 of this agreement; the agreement does not affect any other redevelopment project area, or any other revenues or assets of the Agency. (n) "Tax Revenues" shall mean those taxes allocated to and received by the Agency pursuant to Section 33670 of the Health and Safety Code, from increases in the valuation of real property within the Project Area from and after the effective date of the ordinances first adopting Amendments No. 1 and 2 to the Redevelopment Plan. The term "Tax Revenues" shall only include: -4- (1) All ad valorem property taxes allocated and paid to the Agency pursuant to Article 6, Section 16 of the California Constitution and Health and Safety Code Section 33670 et seq., and (2) Identifiable California State Legislature supplements to or substitutes for ad valorem property tax, including without limitations, sums received by the Agency as reimbursement for lost revenues due to increases in the business inventory tax exemption provided, however, by way of example and not of limitations, the term Tax Revenues as used herein shall not include: (a) Revenues, funds, monies, awards, loans, grants, or credits whose source directly or indirectly is the federal government. (b) Any monies or funds received from any other public_ source (State, County, Municipal, or otherwise) as a result of any loan, grant, or similar award payment. (c) Any public funds, or assessment received by the Agency upon condition, limitation or restriction that precludes use of such funds for payment to the County pursuant to this agreement. (d) Proceeds from disposition of any real or personal property. (e) Proceeds from the sale of bonds or loan agreements. (o) "Additional County Taxes" shall mean tax revenues derived from an increase in the rate of tax imposed for the benefit of the County which occurs after the effective date of this agreement. -5- ARTICLE II. TAX ALLOCATION Section 2.01. The parties agree that the amount payable to the County pursuant to this agreement is appropriate and adequate to alleviate any and all financial burden or detriment caused the County by the adoption and implementation of the Redevelopment Plan. Section 2.02. The County Auditor -Controller shall allocate and distribute to the Agency the total amount of Tax Increment available to the Agency in accordance with Health and Safety Code Sections 33670(b) and 33675, minus the share of increment distributed to the County as agreed in Section 2.03 below. Section 2.03. The County shall receive that portion of Tax Revenues which would have been received by the County for such year if all Tax Revenues from the Project Area had been allocated to all of the affected taxing agencies without regard to the division of taxes required by Health and Safety Code Section 33670(b). Such Tax Revenues shall be allocated to the Agency and to the County until such time as sufficient annual Tax Revenues are allocated and paid to the Agency to pay (a) principal and interest on bonds to be issued -by the Agency ("Debt Service"); (b) the Agency's 20 percent low/moderate income housing obligation imposed by Health and Safety Code Section 33334.2. Section 2.04. When the Agency has received the total amount provided in subsections (a) and (b) of Section 2.03 above, •the allocation of any Tax Revenues to the Agency as provided in such sections shall cease and the County and the affected taxing agencies shall receive all such Tax Revenues without regard to the allocation provided by Health and Safety Code Section 33670. Section 2.05. Nothing in this agreement shall relieve the Agency from filing a Statement of Indebtedness pursuant to Health and Safety Code Section 33674. Section 2.06. All additional County taxes from the Project Area shall be retained by the County and shall not be considered toward the Agency's increment limit. In the event that the Agency makes a finding pursuant to Health and Safety Code Section 33334.2(a) reducing or eliminating the obligation of the Agency to increase and improve the community's supply of low and moderate income housing, the County Share shall be increased by a dollar amount equal to the reduction in the Agency's obligation to apply those Tax Revenues produced by applying the County's tax rate to the Tax Revenue for the provision of low and moderate income housing. -6- Section 2.07. The Agency intends to plan, construct and install certain public facilities within the project area. A portion of the cost for said planning, construction and installa- tion may be assessed, by the City or the Agency, in the form of fees, to property owners or developers. The City and the Agency hereby agrees to pledge said fees toward the payment of indebted- ness of the Agency. Section 2.08. With respect to the agreed upon payments to the County as set forth above, the parties further agree that the Agency's obligation under this agreement is deemed to constitute an indebtedness of the Redevelopment Project as defined in Section 33670 of the Health and Safety Code and the payment thereof shall be solely from Tax Revenues. Section 2.09. Amounts paid by the Agency to the County as the County Share from the Project Area shall not be counted by the parties to this agreement toward the total tax increment which may be allocated to and received by the Agency pursuant to the Amendments No. 1 and 2 of the Redevelopment Plan. Section 2.10. The Agency, in making expenditures for low and moderate income housing, acknowledges that the improvement in the supply of low and moderate income housing is, in part, a result of the cooperation of the County in the Agency's redevelop- ment efforts. The Agency shall prepare annually a written report regarding the funds available and the use of funds pursuant to Health and Safety Code Section 33334.2 and shall give due credit to the County and its Board of Supervisors for its contribution to the Redevelopment Plan. ARTICLE III. GENERAL PROVISIONS Section 3.01. Settlement. By this agreement, the parties resolve all differences with respect to the Redevelopment Plan and the parties agree that the agreement alleviates any and all financial detriment to the County caused by the Redevelopment Plan. The County shall refrain from initiating or participating in any litigation challenging the Redevelopment Plan; provided that the County shall be entitled to seek any remedies appropriate to enforce the terms of this agreement. Section 3.02. The indebtedness of the Agency under this agreement shall be subordinate to any pledge of the Tax Revenues from the project area to pay any portion of the principle and/or interest of any bond or bonds issued or sold by the Agency with respect to the Redevelopment Project. The Agency shall, in good faith, diligently attempt to market such bond or bonds in a manner such that sufficient Tax Revenues remain available to pay the Agency's obligation of this agreement after the first pledge of Tax Revenues to the bond holders. In the event the Agency is unable to meet its obligation under this agreement, such monies due to the County shall accrue and be due and owing until such -7- payment is fulfilled by the Agency. In such event, the obligation of the Agency shall accrue at the rate of twelve (12) percent until payment is made thereafter from Tax Revenues. Until such accrued amounts are paid with interest, such indebtedness to the County shall be senior to all other indebtedness incurred by the Agency except as to such bond indebtedness. Section 3.03. Effective Date and Term. This agreement shall be effective at the first date upon which the Ordinance adopting the Redevelopment Plan for Amendment II is effective. This agreement shall thereafter remain in effect during the entire remaining term of the Redevelopment Plan. Section 3.04. Substitute Provisions. In the event that any person or entity initiates suit to challenge this agreement or the enforcement thereof and effects service on the Agency, the Agency agrees to appear and use its best efforts to defend this agreement and the enforceability thereof. If this agreement is held invalid, in whole or in part, the parties agree to use best efforts to take all necessary steps, including formal action and the execution of documents, to provide for allocation and payment to the Agency of the Tax Revenues as herein provided and for the payment of the County Share as provided for herein to the extent permitted by law. - Section 3.05. Modification. This agreement shall not be modified except by written agreement of the parties. Section 3.06. Entire Agreement. This agreement constitutes the entire, complete and final expression of the agreement of the parties. IN WITNESS WHEREOF, the parties have executed this agreement on the date and year first above written. Appro•:ad and/or zu� .: ize'- by the L.... of SoGcMsors of the ::ca ;j =f `an Diego COUNTY O SAN DPI EGO ,(/ By / C erk of the Board of Supervisors COMMUNITY DEVELO•i•tENT COMMISSION Clop; c: the Board of r OF THE C .Y ATIONAL CITY By CITY OF By ai man Mayor V PARCEL ADDED TO THE ACQUISITION LIST BY AMENDMENT I Boundary of existing National City Downtown Redevelopment Project. y AREA WITHIN EXISTING NATIONAL CITY Ft DOWNTOWN REDEVELOPMENT PROJECT BOUNDARY a FL �, V . i .. \�,, • ,. o IAtA • , oa i—.c . ✓ 0 I 0 \" o4 r1 . • f. R-g '17h'Z N \ rlf-:. +i�L f'.:5 0�. h T,- - 5_ 5,0 %\l4• "1 — Z4c.1 A. M SWEETWAT�0A._D — M m SWNEE WATER TOWN a< COUNTRY SHOPPliNG CENTER C- r `, L1: fr'l a,7- '4 ARLA MuJED TO NATIONAL CITY DOWNTOWN REDEVELOPMENT PROJECT BY THIS AMENDMENT .i i . Boundary of existing National City • T!