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HomeMy WebLinkAboutReso 91-371 - Approve agreement between the Redding Redevelopment Agency, COR, and Shasta County RESOLUTION NO. 71 A RESOLUTION OF THE CITY OF REDDING APPROVING THE AGREEMENT BETWEEN THE REDDING REDEVELOPMENT AGENCY, THE CITY OF REDDING, AND SHASTA COUNTY. WHEREAS, The City Council of the City of Redding (the "Council") adopted the Redevelopment Plan (the "Redevelopment Plan") for the Canby- Hilltop-Cypress Redevelopment Project (the "Project") by Ordinance No. 1552 on July 20, 1981; and WHEREAS, the City Council adopted an Amendment to the Redevelopment Plan (the "Amendment") by Ordinance No. 1942 on November 6, 1990, which adds certain area to the Original Project (the "Added Area") ; and WHEREAS, Shasta County (the "County") is a taxing agency with territory located within the Added Area; and WHEREAS, pursuant to Article XVI, Section 16, of the California Constitution, Section 33670 et seq. of the Health and Safety Code, and the Amendment, increases in the assessed values of the property within the Added Area above the sum of the assessed values as shown on the 1989-90 assessment roll (the "Base Year Roll") will result in that portion of property taxes levied each year on such increases in assessed values being paid to the Agency as tax increments (and not including any amounts paid to affected taxing entities pursuant to Section 33676 of the Health and Safety Code) ("Tax Increments") to pay the principal of and interest on loans, monies advanced to or indebtedness incurred by the Agency to finance or refinance, in whole or in part, redevelopment in accordance with the Redevelopment Plan, as amended by the Amendment; and WHEREAS, Section 33401 of the Health and Safety Code Section allows a redevelopment agency to make any payments necessary to alleviate any financial burden or detriment caused to any affected taxing agency by a redevelopment project; and WHEREAS, the Council has determined that because of the loss in i property taxes the County could incur due to the Amendment, certain actions as set forth in the attached Agreement are necessary to alleviate the burden and detriment or potential burden and detriment to the County; and 'J WHEREAS, in consideration of the Agreement determining the obligations of the Agency, the County is foregoing the right to contest the adoption of the Amendment, including, but not limited to, filing a suit, and the City recognizes this as good and legal consideration; and WHEREAS, for the purposes of the attached Agreement, the Project shall mean the Original Project as amended by the Amendment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING HEREBY RESOLVES that the "Agreement" between Shasta County and the Redding Redevelopment Agency and the City of Redding, in the form attached to this Resolution and incorporated herein by reference, is hereby approved, and the Mayor is hereby directed and authorized to execute said Agreement. I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 3rd day of Septnanbe;7 1991, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness, Buffiun, Fulton, Moss & Dahl NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None MIKE DAHL, Mayor ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: v "I NDALL . HAYS, i Attorney ' 1 t • • DUPUCATE i AGREEMENT BETWEEN THE REDDING REDEVELOPMENT AGENCY, THE CITY OF REDDING AND SHASTA COUNTY PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement") is made and entered into this day of ' 1991, by and between the REDDING REDEVELOPMENT AGENCY (the "Agency"), THE CITY OF REDDING (the "City") and SHASTA COUNTY (the "County"). Recitals A. The City Council of the City of Redding (the "City Council") adopted the Redevelopment Plan (the "Redevelopment Plan") for the Canby- Hilltop-Cypress Redevelopment Project (the "Original Project") by Ordinance No. 1552 on July 20, 1981. B. The City Council adopted an Amendment to the Redevelopment Plan (the "Amendment") by Ordinance No. 1942 on November 6, 1990, which adds certain area to the Original Project (the "Added Area"). C. The County is a taxing agency with territory located within the Added Area. D. Pursuant to Article XVI, Section 16, of the California Constitution, Section 33670 et se . of the Health and Safety Code and the Amendment, increases in the assessed values of the property within the Added Area above the sum of the assessed values as shown on the 1989-90 assessment roll (the "Base Year Roll") will result in that portion of property taxes levied each year on such increases in assessed values being paid to the Agency as tax increments (and not including any amounts paid to affected taxing entities pursuant to Section 33676 of the Health and Safety Code) ("Tax Increments") to pay the principal of and interest on loans, monies advanced to or indebtedness incurred by the Agency to finance or refinance, in whole or in part, redevelopment in accordance with the Redevelopment Plan, as amended by the Amendment. RDD/Canby-CoTIAgmt/CDC 8/8/91 E. Section 33401 of the Health and Safety Code allows a redevelopment agency to make any payments necessary to alleviate any financial burden or detriment caused to any affected taxing agency by a redevelopment project. F. The Agency has determined that because of the loss in property taxes the County could incur due to the Amendment, certain actions as set forth below are necessary to alleviate the burden and detriment or potential burden and detriment to the County. G. In consideration of this Agreement determining the obligations of the Agency, the County is foregoing the right to contest the adoption of the Amendment, including, but not limited to, filing a suit, and the Agency recognizes this as good and legal consideration. H. For the purposes of this Agreement, the Project shall mean the Original Project as amended by the Amendment. Agreements THE AGENCY AND THE COUNTY HEREBY AGREE AS FOLLOWS: Section 1. The Agency agrees to annually pass through to the County the following amounts: a. Subject to the provisions in Section 2 hereof, the Agency agrees to annually pass through to the County one hundred percent (100%) of the County's Share, as defined herein, of the Tax Increments from the Added Area. b. In the event the County either: (1) does not execute the Fees Agreement as set forth in Section 2 hereof; (2) does not adopt and impose the fees as set forth in the Fees Agreement; or (3) discontinues imposing, collecting or transmitting to the City the fees pursuant to the Fees Agreement prior to the termination of this Agreement, , whether voluntarily or as a result of litigation, the Agency agrees to annually pass through to the County ninety percent (90%) of the amount of the County's Share of the Tax Increments from the Added Area. The "County's Share;' as used in this Agreement, shall mean the proportionate percentage share of the Tax Increments that the County would have received as property taxes from the Added Area at the time of the effective date of the Ordinance approving the Amendment if there were no provision in RDD/Canby-CoTIAgmt/CDC 2 8/8/91 the Redevelopment Plan, as amended by the Amendment, for the allocation of Tax Increments from the Added Area to the Agency. Section 2. Within one hundred eighty (180) days after the date that the Agency and County have executed this Agreement, the County agrees to execute an agreement with the City, in a form acceptable to the Agency and the City, which shall provide that the County adopt and impose both of the following fees within the area of the Redding Sphere of Influence boundaries in effect on October 2, 1990, and the area known as Churn Creek Bottom, as shown on the "Impact Fees Boundary Map," attached hereto as Attachment No. 1 and incorporated herein by reference (the "Fees Agreement"). a. Traffic Impact Fees: The County shall adopt and impose traffic impact fees equal to and applicable to the same categories of persons of those imposed by the City. These fees will be collected by the County and transmitted to the City for use by the Agency for projects which are reasonably related to the purpose for which the fees are levied in accordance with the Fees Agreement. b. Park Fees: The County shall adopt and impose park fees equal to and applicable to the same categories of persons of those imposed by the City. These fees shall be collected by the County and transmitted to the City for use by the Agency for projects which are reasonably related to the purpose for which the fees are levied in accordance with the Fees Agreement. Section 3. In no event shall payments be made to the County by the Agency which are for purposes other than those specified in Section 33401 of the Community Redevelopment Law or which are in violation of any other provision of the Community Redevelopment Law or the laws of the State of California. Section 4. This Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Project and a pledging of Tax Increments from the Project to repay such indebtedness under the provisions of Article XVI, Section 16, of the California Constitution and Sections 33670-33677 of the Health and Safety Code. Section 5. The County agrees to authorize the Agency to subordinate its interest herein and to allow the Agency to pledge all or any portion of the Tax Increments otherwise payable to the County under this Agreement in RDD/Canby-CoTIAgmt/CDC 3 8/8/91 I order to secure the repayment of Agency indebtedness incurred for the Project; provided the Agency, prior to the pledging of said Tax Increments, demonstrates in writing to the reasonable satisfaction of the County, its ability to make payments due to the County under the terms of this Agreement. Nothing in this Agreement shall give the County the right to approve Agency indebtedness, except as the Agency may request the County to subordinate its rights to payments under this Agreement. In the event the Agency fails to make any payment due to the County under this Agreement due to subordination pursuant to this Section 5, the amount shall become a debt of the Agency accruing interest at an interest rate equal to the interest rate received by the County for pooled investment funds. Section 6. Commencing with the execution of this Agreement by the County, the City and the Agency and continuing until the termination of this Agreement, the Agency shall, upon completion, submit copies to the County of all reports that the Agency is required to prepare by law for the members of the Agency or the State relative to the fiscal status of the Agency and its project activities within the Project Area. Section 7. This Agreement shall be effective upon execution by the Agency. Section 8. The Agency, the City and the County agree not to file and the County agrees not to engage in any litigation to directly or indirectly test or challenge the validity of the Project as amended by the Amendment, the Amendment, the Final Supplemental Environmental Impact Report on the Amendment (the "Final EIR"), the Ordinance or this Agreement; however, this Section shall not preclude the Agency from initiating a bond validation suit if it is deemed necessary by the Agency to assure adequate financing for the Project. Section 9. In the event litigation is initiated by any party attacking the validity of the Amendment, the Project as amended by the Amendment, the Final EIR or the Ordinance, this Agreement shall become null and void. Section 10. This Agreement shall terminate upon the earlier of the expiration or termination of the Redevelopment Plan, as amended by the Amendment, or of the provisions of the Redevelopment Plan, as amended by the Amendment, authorizing the allocation to the Agency of Tax Increments RDD/Canby-CoTTAgmt/CDC 4 8/8/91 from the Added Area. Upon termination of this Agreement, all obligations of the Agency to make payments to the County shall cease. IN WITNESS WHEREOF, the Agency, the City and the County have executed this Agreement as of the date first above written. REDDING REDEVELOPMENT AGENCY BY F® M APPROVED Chaidnan CITY LES ®& Q - BY Secretary "AGENCY" CITY OF REDDING By Mayor ZFOAPPROVEDBi C3Ad, ® ,. City Clerk „CITY„ SHASTA COUNTY By 9 "COUNTY" RDD/Canby-CoTIAgmt/CDC 5 8/8/91 a t ATTACHMENT NO. 1 IMPACT FEES BOUNDARY 0 1.0 2-0 3.0 ---ems— � .5 1.5 2.5 MILES `t r is �i .. Joao s CITY LIMIT „_„_„_„_ BOUNDARY IMPACT FEES BOUNDARY