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
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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
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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
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