1985-1210_ORANGE, COUNTY/AGENCIES_Tax Increment Agreement• I
AGREEMENT
This Agreement is made and entered into this day of
1985, by and between the County of Orange, the
Orange County Flood Control District, the Orange County
Harbors, Beaches and Parks District (hereinafter collectively
referred to as "County Taxing Entities"), the San Juan
Capistrano Redevelopment Agency (hereinafter referred to as the
"Agency"), and the City of San Juan Capistrano (hereinafter
referred to as the "City").
R E C I T A L S
WHEREAS, the Agency is a redevelopment agency existing
pursuant to the provisions of the Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq.) which
has been authorized to transact business and exercise the
powers of a redevelopment agency pursuant to action of the City
Council of the City; and
WHEREAS, the Agency has prepared, and the City Council of
the City has adopted by Ordinance No. 488, a redevelopment plan
entitled "San Juan Capistrano Central Redevelopment Project"
(the "Redevelopment Plan") which delineated a redevelopment
project area (the "Project Area"); and
WHEREAS, the Redevelopment Plan as approved by Ordinance
No. 488 contains provisions for the distribution and allocation
of property tax revenues derived from property located within
the Project Area, as described in Exhibit A, to the Agency
pursuant to California Health and Safety Code Section 33670(b)
(hereinafter referred to as "Original Area Tax Increment"); and
WHEREAS, Fiscal Review Committee meetings were held by
representatives of the County and other affected taxing
entities to determine the fiscal impact of the Project and the
anticipated allocation of tax increment money to implement the
Redevelopment Plan; and
WHEREAS, on June 24, 1983 the Fiscal Review Committee found
that the use of tax increment financing would have an adverse
fiscal impact on the County Taxing Entities; and
WHEREAS, the parties agree that the redevelopment project
will cause a financial burden and detriment to the affected
County Taxing Entities, in that there will be a net increase in
the services provided by the County; and
WHEREAS, by Ordinance No. 509 of the City, the
Redevelopment Plan was amended by the "1984 Amendment", which
1984 Amendment increased the amount of tax increment which
could be allocated to the Agency but which did not change the
territory included within the Project Area; and
WHEREAS, the parties hereto previously entered into an
agreement dated as of July 10, 1984 concerning the allocation
of taxes with respect to the Project Area (the "1984 County
Agreement"); and
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WHEREAS, the Agency has commenced proceedings to amend the
Redevelopment Plan, and to add certain territory, described in
Exhibit B (the "Added Area") to the Project Area; and
WHEREAS, the original Project Area (as approved by
Ordinance No. 488) and the Added Area shall together be
referred to to herein as the "Amended Project Area"; and
WHEREAS, upon completion of the proposed amendment (the
"Amendment"), which shall generally conform to the Amended
Preliminary Plan accepted by the Agency by its Resolution No.
CRA 85-3-5-3 approved on March 5, 1985, provisions for the
distribution and allocation of property tax revenues, in
conformity with California Health and Safety Code Section
33670(b), shall be applicable to the Amended Project Area; and
WHEREAS, the parties have conducted informal meetings and
discussions to exchange information concerning the proposed
Amendment and its impacts and, based upon such discussions,
have determined that the use of tax increment financing within
the Added Area (such tax increment allotted to and received by
the Agency constituting the "Added Area Tax Increment") would
have an adverse impact on the County Taxing Entities similar to
that attributable to the Redevelopment Plan; and
WHEREAS, the parties agree that the Amendment will cause a
financial burden and detriment to the affected County Taxing
Entities, in that there will be a net increase in the services
provided by the County; and
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WHEREAS, the Original Area Tax Increment and the Added Area
Tax Increment together shall be referred to as the "Combined
Tax Increment"; and
WHEREAS, the parties agree that the payments provided for
under this Agreement are necessary to alleviate the above
financial burdens and detriments; and
WHEREAS, pursuant to California Health and Safety Code
Section 33401, the Agency may pay to the County Taxing
Entities, which taxing agencies have territory located in the
Combined Project Area, an amount of money which, in the
Agency's determination, is appropriate to alleviate any
financial burden or detriment caused to the County Taxing
Entities by the Redevelopment Project as proposed to be amended
by the Amendment; and
WHEREAS, for the above reasons, and to amicably resolve any
differences regarding the Redevelopment Plan or the Amendment,
the parties hereto enter into this Agreement.
NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants and conditions contained herein, the parties
hereto agree as follows:
Section 1.
A. In each year, commencing with fiscal year 1983-84,
that property taxes are allocated to and paid into the special
fund of the Agency from the Amended Project Area pursuant to
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Health and Safety Code Section 33670(b), the Agency will pay or
cause to be paid to Orange County Fire Department Fund, the
Orange County General Fund, and the Orange County Flood Control
District the corresponding percentages of the amount so
allocated to and paid into said special fund as follows:
Orange County General Fund 4.0%
Orange County Flood Control District 2.2%
Orange County Fire Department Fund 10.9%
B. Commencing the first fiscal year after the Agency has
received a total of three hundred fifteen million dollars
($315,000,000) in Combined Tax Increment from the Amended
Project Area and each year thereafter, instead of those
percentages set forth in Part A of this Section 1, the Agency
shall pay to the County General Fund, Orange County Fire
Department Fund, Orange County Library Fund, Orange County
Harbors, Beaches and Parks District Fund, and Orange County
Flood Control District Fund an amount equal to one hundred
percent (100""%,) of the amount which would be received thereafter
by each of the above taxing entities (after the Agency has
received three hundred fifteen million dollars [$315,000,000]
in Combined Tax Increment) if all property tax revenues from
the Amended Project Area were thereafter allocated to all the
affected taxing agencies without regard to the diversion of
taxes required by Health and Safety Code Section 33670, or its
successor.
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9 0
C. As used in this Agreement, the terms "property tax
revenues" and "Combined Tax Increment" shall only include all.
ad valorem property taxes allocated and paid to the special
fund of the Agency pursuant to Health and Safety Code Section
33670(b), or its successors.
D. Notwithstanding the foregoing, the obligation of the
Agency to make those payments described in Part A and Part B of
this Section 1 shall be subject to the following adjustments:
(1) in the event that the City terminates its use of
County fire protection services, the obligation of the Agency
to pay funds to the County for the Orange County Fire
Department Fund shall thereafter be terminated and the Agency
shall thereafter have no obligation to make payment of those
amounts identified in Part A of Section 1 as payable to the
Orange County Fire Department Fund, or to make any payments to
the Orange County Fire Department Fund;
(2) all funds paid by or on behalf of the Agency
which are to be paid to the Orange County Fire Department and
the Orange County Flood Control District shall be deposited
into the Orange County Fire Department Fund and the Orange
County Flood Control District Fund, respectively, for use only
for fire protection purposes or flood control purposes
(including administrative costs) as allowed by statute.
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E
i
Section 2. Payments to County Taxing Entities as set
forth in Section 1 above are subject to the following
conditions and limitations:
A. The Agency's obligations under this Agreement are
deemed to constitute "an indebtedness" within the meaning of
Health and Safety Code Section 33675.
B. The Agency shall pay to the County Taxing Entities
amounts due pursuant to this Agreement during each fiscal year
within a reasonable period after the Agency receives the 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. Without the prior approval by the County, the Agency's
obligation to make the payments referenced in Section 1 shall
not be subordinated to any pledge of or other obligation by the
Agency, including but not limited to the Agency's obligation
under Health and Safety Code Section 33334.2 and any
reimbursement agreements with other taxing agencies receiving
taxes from the Amended Project Area.
D. The Agency's obligation to make payments hereunder
shall be limited to and be paid only from Combined Tax
Increment from the Amended Project Area received by the
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Agency. The City shall have no financial obligation by virtue
of this Agreement, and shall not be responsible for the
discharge of obligations of the Agency herein. The Agency
shall be deemed to be fully discharging its obligations under
this Agreement if it pays or causes the payment of those
amounts payable pursuant to Section 1 of this Agreement.
E. Notwithstanding any other provision of this Agreement
to the contrary, the Agency's obligation to make payments to
any County Taxing Entity under this Agreement in any single
year shall not exceed the amount of property tax revenues which
would have been received by that County Taxing Entity if all
the property tax revenues from the Amended 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.
E. The 1984-85 assessment roll shall be the base year
assessment roll for the Added Area. The base roll for
territory included within the Project Area by virtue of
Ordinance No. 488 shall not be changed from the base roll
applicable to such territory and in effect prior to the
execution of this Agreement.
Section 3. The County Taxing Entities consent to and
approve the Amendment, which has been reviewed by the County
Taxing Entities and provides for the inclusion of the Added
Area and the use of tax increment financing with respect to
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go
such -Added Area. The County (and the County Taxing Entities)
agrees that it will not file any lawsuit attacking or otherwise
questioning the validity of the above Amendment or the adoption
or approval of such Amendment, or any of the findings or
determinations previously made by the Agency or the City
Council in connection with such Amendment, or any actions
previously taken by the Agency or the City to implement the
Redevelopment Plan, the 1984 Amendment, or the Amendment.
Section 4. This Agreement constitutes the entire
agreement between the Agency and the County Taxing Entities
with respect to the matters set forth herein, and supercedes
any prior agreements by the parties in connection with the
Redevelopment Plan or the Amendment (including without
limitation the 1984 County Agreement); any changes,
modifications or amendments thereto shall be legally binding
and effective only upon duly executed written amendment hereto.
Section 5. This Agreement shall become effective the
date last executed below and shall continue in effect until the
Agency is deactivated pursuant to Section 33141 of the
California Health and Safety Code or its successor.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the day and year first above written.
Dated: 1985
APPROVED,S TOFORM
County Counsel
Dated:
APPROVED AS TO FORM:
Agency Legal Counsel
Tom Clark
Approved as to Form:
1985
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Dated: , 1985
COUNTY OF ORANGE, ORANGE FLOOD
CONTROL DISTRICT and ORANGE COUNTY
HARBORS, BEACHES AND PARKS DISTRICT
By;
Chairman," Bdard of 5upervis s
Dated: 1_ 1985
SAN JUAN CAPISTRANO REDEVELOP-
MENT AGENCY, GARY L. HAUSDORFER, CHAIRMAN
By:
Vice airman -
Lawr nce F. Buchheim
Dated: October 1 , 1985
CITY OF SAN JUAN CAPISTRANO
By:
Mayor, T4 ty Council -
Phillip R. Schwartze
Attest:
-10-
Mary
Ann
nover,
CMC
City
Cler
/Agency
Secretary
-10-
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COMMUNITY REDEVELOPMENT PROJLCT
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PENTRAL REDEVEWPMENT PROJECT
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R.77
COMMUNITY REDEVELOPMENT PROJECT
CITY OF SAN JUAN CAPISTRANC
AGENDA ITEM October 1, 1985
TO: Stephen B. Julian, City Manager
FROM: Thomas G. Merrell, Director
Community Planning and Development
SUBJECT: Tax Increment Agreement (County of Orange)
SITUATION
On July 10, 1984, as part of the adoption of the City's
Redevelopment Plan, the San Juan Capistrano Community
Redevelopment Agency and the City entered into an agreement
with the County of Orange to mitigate potential fiscal
impacts to the County arising from new development within
the project area.
As a result of the recently adopted amendment to the
Redevelopment Plan expanding its boundaries, a similar
agreement is being required. The agreement, prepared by
staff and Agency and County counsel, provides for the
following:
° Identifies the percentage of tax increment to be
allocated for each County taxing agency. The
total percentage to be passed to the County amounts
to 17.1 percent of the total tax increment to be
generated by the project area. The affected
taxing entities and the costs to the County created
by the project area are as follows:
Orange County General Fund 4.0 percent
Orange County Flood Control District 2.2 percent
Orange County Fire Protection Fund 10.9 percent
Provides for Agency termination of tax allocation
to the Orange County Fire Protection Fund in the
event the City decides to terminate its fire
protection contract with the County.
° Provides for Agency reduction of tax increment to
fire protection fund in the event funds are not
used by taxing entity.
Provides for a process regarding timing of payments
and protection of funds to be allocated to the
taxing agencies. Essentially, the payments are to
be made approximately 60 days from receipt of funds
from County Auditor Controller. In addition, the
funds are designated as "an indebtedness" and cannot
be subordinated to any pledge or obligation by the
Agency. ckb
'CITY COUNCIL AGENDA , nnw
Agenda Item -2- October 1, 1985
° Determines that the City does not create a negative
financial impact to the taxing entities; thus,
holds the City to have no financial obligation to
the County.
° Consents and approves of the current amendment to
the Redevelopment Plan.
Staff believes that the attached agreement adequately addresses
the fiscal impacts to the County taxing entities. The Agency's
efforts to achieve economic revitalization and to attract
investment to our community continue to be possible as a result
of the agreement.
COMMISSION/BOARD REVIEW, RECOMMENDATION
Not applicable.
FINANCIAL CONSIDERATIONS
The agreement would obligate the Agency to 17.1 percent of
the total tax increment to he generated by the project area.
Payment to the County taxing agencies would occur upon receipt
of funds by County Auditor Controller.
ALTERNATE ACTIONS
1. Approve the proposed tax increment agreement, and
authorize the mayor to execute it subject to execution
by the Orange County Board of Supervisors.
2. Do not approve the proposed agreement, and give other
direction to staff.
RECOMMENDATION
By motion, approve the proposed tax increment agreement, and
authorize the mayor to execute it subject to execution by
the Orange County Board of Supervisors.
Respectfully submitted,
Thomas G. Merrell, Director
Community Planning and Development
TGM:kjs
Attachment
San Juan Capistrano
Community
Redevelopment
.agency
August 30, 1985
Tom Clark
Stradling, Yocca, Carlson & Rauth
Attorneys at Law
P. O. Box 7680
Newport Beach, California 92660-6401
Re:
Dear Mr. Clark:
Two copies of each of the following Agreements are enclosed which
require your signature: ssa.,a �d {v r
1. Participation Agreement by and between the r-
kt .. xo6 Redevelopment Agency of the City of San Juan Capistrano
and Raiser Development Company, scheduled for City
approval on September 17, 1985.
2. Agreement between the County of Orange; the Orange
County Flood Control District; the Orange County
Harbors, Beaches, and Parks District; the San Juan
G'» Capistrano Redevelopment Agency; and the City of San
Juan Capistrano for Redevelopment Plan Amendment 84-1,
scheduled for Agency and City approval on September 17,
1985.
Please sign these Agreements and return them to this office at
your earliest convenience. It will also be necessary for us to
obtain signatures from Kaiser Development Company prior to the
September meeting.
32400 Paseo Adelanto
San Juan Capistrano
California 92675
714-493.1171
Tom Clark
Thank you for your co
please do not hesitat
Very truly yours,
17ew��
MARY ANN PNOVER, CMC
City Clerk
MAH/mac
Enclosures
•
RECEIYcC
MINUTES OF THE BOARDT—.SUPERVISORS
OF ORANGE COUNTY"
ALIFORNIA
DECEMBER 10, 1985
COUNTY ADMINISTRATIVE
JAN 03 1986
OFFICE
TAX INCREMENT REIMBURSEMENT AGREEMENT -SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT
AGENCY (FLOOD) (File o. Flood T78, X C14.1, X City):n motion by Supervisor Clark,
seconded y upervisor Riley, the Clerk of the Board, on behalf of the Board of
Supervisors, was authorized to execute an agreement, which provides for the
pass-through of certain tax increments to the County family of funds impacted by
amendment 84-1 to the San Juan Capistrano Central Redevelopment Project, negotiated
with the City of San Juan Capistrano and the San Juan Capistrano Community
Redevelopment Agency and approved by both agencies on October 1, 1985. Supervisor
Stanton was absent. MOTION CARRIED.
' -Jds•. F1013 2.3 (12/76)
San Juan Capistrano
Community
Redevelopment
Agency
October 3, 1985
Arlene Sontag
County Administrative Office
Hall of Administration
10 Civic Center Plaza
Santa Ana, California 92701
Re: Tax Increment
Dear Arlene:
The Board of Directors of the San Juan Capistrano Community
Redevelopment Agency and the City Council of the City of San Juan
Capistrano at their respective meetings held October 1, 1985,
approved the Tax Increment Agreement.
Enclosed are two signed copies of the Tax Increment Agreement.
When signed by the county, please return a fully executed copy to
this office.
Thank you for your cooperation.
Very truly yours,
C
MARY.AN OVER, CMC
Agency Secretary
City Clerk
MAH/mac
Enclosures
cc: Executive Director
Deputy Director
Orange County Auditor -Controller
Tom Clark, Agency Counsel
82400 Paseo Adelanto
San Juan Capistrano
California 92675
714-498-1171
1.
0 0 466.6,-0
Written Communications:
Report ate Octo er 1, 1985, from the Director of Community
Planning and Development, forwarding an agreement with the
County of Orange for mitigation of potential fiscal impacts
to the County arising from new development within the
expanded Redevelopment Project boundaries. The agreement
provides for the following:
(1) The percentage of tax increment to be allocated for
each County taxing agency.. The total percentage to be
passed to the County amounts to 17.1 percent of the
total tax increment to be generated by the project
area.
(2) Agency termination of tax allocation to the County Fire
Protection Fund in the event the City decides to
terminate its fire protection contract with the County.
(3) Agency reduction of tax increment to fire protection
fund in the event funds are not used by the taxing
entity.
(4) A process regarding timing of payments and protection
of funds to be allocated to the taxing agencies.
Essentially, the payments are to be made approximately
60 days from receipt of funds from the County Auditor
Controller. In addition, the funds are designated as
"an indebtedness" and cannot be subordinated to any
pledge or obligation by the Agency.
(5) Determines that the City does not -create a negative
financial impact to the taxing entities; thus; holds
the City to have no financial obligation to the County.
(6) Consents and approves of the current amendment to the
Redevelopment Plan.
Approval of Agreement:
It was moved by Councilman Bland, seconded by Councilman
Buchheim, and unanimously carried to approve the proposed
tax increment agreement between the County of Orange, the
Orange County Flood Control District, the Orange County
Harbors, Beaches and Parks District, the San Juan Capistrano
Redevelopment Agency, and the City. The Mayor and City
Clerk were authorized to execute the agreement on behalf of
the City.
loh/es