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
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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
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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.
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(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:
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(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.
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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.
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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
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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.
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Ft DOWNTOWN REDEVELOPMENT PROJECT BOUNDARY
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ARLA MuJED TO NATIONAL CITY DOWNTOWN
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Boundary of existing National City
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