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1983-1006_SADDLEBACK COMMUNITY COLLEGE DISTRICT_Agreement�+ _ "AGENCY COPY" AGREEMENT BETWEEN THE SADDLEBACK COMMUNITY COLLEGE DISTRICT AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY 1. PARTIES AND DATE 1.1 This Agreement is entered into this 6th day of October, 1983, by and between the SADDLEBACK COMMUNITY COLLEGE DISTRICT, a public agency ("District"), and the SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY, ("Agency"). 2. RECITALS 2.1 The City of San Juan Capistrano has adopted Ordinance No. 488 on July 12, 1983, which ordinance approves the San Juan Capistrano Central Redevelopment Project ("Redevelopment Plan") and establishes the San Juan Capistrano Central Project Area ("Project Area") pursuant to the California Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.) for the redevelop- ment, replanning and redesigning of certain blighted areas within the City of San Juan Capistrano which require redevelopment in the interest of health, safety and general welfare of the City of San Juan Capistrano. 2.2 District and Agency recognize and hereby find that the implementation of the Redevelopment Plan may create financial detriment for the District. It is the purpose of this Agreement to mitigate any such financial detriment by providing certain funds to the District for capital improvements, which improvements are necessitated by student generation associated with new residential development within the Project Area. NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants contained herein, the parties hereto agree as follows: -1- 3. NEW RESIDENTIAL CONSTRUCTION WITHIN THE PROJECT AREA 3.1 If and to the extent any new residential construc- tion occurs within the Project Area, Agency will pay District an amount equal to Seven Hundred Dollars ($700.00) per residential unit within thirty (30) days of issuance of Certification of Occupancy with respect to each such residential unit. Said $700 per unit shall be increased based on the ENR Building Cost Index (Los Angeles) as of January 2, 1984, Such increase, if any, shall commence on January 2, 1985 and annually thereafter; provided however that such increase shall not exceed 4-�8 in any one year. Agency and District agree to reanalyze the feasibility of the ENR Index and/or the 4h8 cap after each 5th year of this Agreement and negotiate, in good faith, any adjustments reasonably required to fulfill the intent of this Agreement. 4. DISTRICT SHARE OF EXTRAORDINARY TAX INCREMENT 4.1 Agency shall pay the District within 30 days after receipt, Extraordinary Tax Increment, as hereinafter defined. 4.2 For purposes of this Agreement, Extraordinary Tax Increment shall be the product of the District's tax rate and that tax increment attributable to the area within the territorial limits of the District which are coincident with the territorial limits of Project Area after the effective date of Ordinance No. 488, and which are allocated to the Agency pursuant to Health and Safety Code Section 33670(b), which are in excess of Fifteen Million Dollars ($15,000,000.00) aggregated for any consecutive five (5) year period (i.e., years 0-5, 6-10, 11-15, etc., as identified in the Redevelopment Plan), but in no event more than $5,000,000 in any such period. 4.3 The receipt of Extraordinary Tax Increment by District shall be subordinated to long term Agency debt. -2- 5. USE OF FUNDS 5.1 District agrees to use the funds received by it from Agency solely for capital outlay projects of District or, in the discretion of District, for providing special services to residents of the City of San Juan Capistrano. 6. REDEVELOPMENT PLAN AMENDMENT 6.1 Agency is currently in the process of amending its Redevelopment Plan to provide for an increase in the total amount of tax increment allocable to the Agency for increase in term, and for the addition of certain public improvements. District hereby finds and declares that this Agreement mitigates any financial burden or detriment that may be created by the proposed Redevelopment Plan Amendment and, therefore, consents thereto. 7. EFFECTIVE DATE 7.1 This Agreement shall not become effective unless and until any and all litigation challenging the validity of the Redevelopment Plan and the receipt of tax increment pursuant thereto has been dismissed to the satisfaction of Agency Counsel, or a court of competent jurisdiction has rendered a final decision upholding the validity of the Redevelopment Plan and the receipt of tax increment pursuant thereto and no appeal of said judgment has been filed. DATED: 10-24-83 DATED: October 6, 1983 SADDLEBACK COMMUNITY COLLEGE DISTRICT Its: Chancellor THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY a ATTEST: MARY ANN !�NNOVER,-AGENCY SECRETARY -3- a 0 kC CII D't't Saddlebac ommu" I Y o ewe is 1%, )CT 28 A&V AAF \ 28000 Marguerite Parkway • Mission i October 27, 1983 Mr. Stephen Julian City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Mr. Julian: 4 i� PM 'BI o, CA 92692 • (714) 831-4500 Cry,-; .. A?;., r Enclosed please find an executed copy of the Agreement Between the Saddleback Community College District and the San Juan Capistrano Community Redevelopment Agency. Since/rely, Albert J/✓Grafsky, Jr. Vice Chancellor, AJG:jt Fiscal Services and Operations enclosure BOARD OF TRUSTEES: John C Connolly; Eugene C. McKnight Robert L. Moore; Robert L. Price; LarryW Taylor; William L. Watts. Harriett S. Walther Dr, Larry P. Stevens, Chancellor on equal opportunity Institution • serving south orange county 1 San Juan Capistrano Community Redevelopment Agency I__.. --r October 17, 1983 Dr. Al Grafsky Saddleback Communit College District Fiscal Services and Operations 28000 Marguerite Parkway Mission Viejo, California 92692 Re: Participation Agreement - Community Redevelopment Agency. Dear Dr. Grafsky: Enclosed is the Agreement that was approved by the Agency Board of Directors on October 6. The Agreement has been reviewed by Agency Legal Counsel and a copy sent to Clayton Parker. Please note the addition of Section 7 referring to the Effective Date of the agreement. Two copies of the Agreement executed by the Agency are enclosed. Please sign and date both copies and return the "Agency Copy" to my office. Thank you for your cooperation. Very truly yours, MARY ANN HANOVER Agency Secretary MAH/cj Enclosures cc: Executive Director Clayton Parker Barney Allison 32400 Paseo Adetanto San Juan Capistrano California 92675 711-493-1171 9 a 2. REDEVELOPMENT PARTICIPATION AGREEMENT (SADDLEBACK COMMUNITY COLLEGE DISTRICT) (68.38) Chairman Hausdorfer advised that the Agreement had been approved by the College District. BOARD ACTIONS TAX INCREMENT AGREEMENT (68.38) The Deputy Director advised that the agreements were not ready for approval. The County Counsel is in the process of reviewing the Tax Increment Agreement with the Agency; discussions are continuing with the School Districts. 0 BOARD ACTIONS 0 REDEVELOPMENT PARTICIPATION AGREEMENT (SADDLEBACK COMMUNITY COLLEGE DISTRICT) (68.38) Written Communications: Report dated October 6, 1983, from the Deputy Director, forwarding an analysis of the impact on the Saddleback Community College District from the Redevelopment Plan and a proposed agreement to mitigate those impacts. The agreement provides for the Agency to pay the District $700 per new residential unit built in the project area; and, provides for additional monies to be given to the District in the event the Agency receives extraordinary tax increment revenues. Approval of Agreement: It was moved by Director Schwartze, seconded by Director Buchheim and unanimously carried to approve the proposed participation agreement and to authorize the Chairman to execute the agreement subject to execution by the Saddleback Community College District Board and dismissal with prejudice of litigation attacking the validity of the Redevelopment Plan. m/ ('J g 3 AGENDA ITEM October 6, 1983 TO: Board of Directors, Community Redevelopment Agency FROM: Stephen B. Julian, Executive Director SUBJECT: Redevelopment Agreements SITUATION: The Redevelopment Agency agreements with the County of Orange, Capistrano Unified School District, and the Saddleback Community College District will be forthcoming pending further discussions with the affected agencies and review at the Council meeting of September 29, 1983. C".e'04 a AGENDA ITEM September 6, 1983 TO: Stephen B. Julian, Executive Director Community Redevelopment Agency FROM: Thomas G. Merrell, Deputy Director Community Redevelopment Agency SUBJECT: Status Report on Consultation With Other Taxing Agencies SITUATION The County of Orange, the Capistrano Unified School District, and the Saddleback Community College District have expressed an interest in discussing the fiscal implications of Agency activities on their respective agencies. Staff has maintained an openness to consult on such matters since the beginning of this year. As a result, staff will present proposed formal agreements with the County and CUSD for Agency review and consideration within approximately 30 days. Although no formal agreement has been reached with Saddleback Community College District, staff has communicated a continuing willing- ness to work out a similar agreement as we have with CUSD. Staff requests a closed session with the Agency in order to review legal aspects of this matter. Respectfully submitted, �p Thomas G. Merrell, Deputy Director Community Redevelopment Agency TQM: jtb FOR Cllr' MUNCj6, #GF.NDA b i t AGENDA ITEM October 6, 1983 TO: Community Redevelopment Agency FROM: Thomas G. Merrell, Deputy Director Community Redevelopment Agency SUBJECT: Redevelopment Participation Agreement (Saddleback Community College District) STTITATTnN The Saddleback Community College District has requested the Community Redevelopment Agency to mitigate potential fiscal impacts to the district arising from new development within the project area. The extent to which tax increment financing will contribute to the district's fiscal problems is uncertain. The uncertainty is due to the fact that the state supplements property tax revenues in funding community college districts. The Saddleback staff has focused on capital needs resulting from new residential projects in the project area. Costs of classroom and administrative support facilities per student have been estimated in the attached report from the college district. Staff believes it is appropriate for the Agency to address these needs. Efforts of the Agency to achieve economic revitalization and to attract investment to our community are enhanced to the extent that the community college can accommodate future growth. The proposed agreement would address college district needs in two ways. First, it provides for the Agency to pay the district $700 per new residential unit built in the project area. (This figure is adjusted annually for inflation.) Second, it provides for additional monies to be given to the district in the event the Agency receives extraordinary tax increment revenues. These additional funds represent the college district's normal share of the extraordinary property tax revenue. The Saddleback Community College District Board will act on the proposed agreement at their meeting of October 10, 1983. COMMISSION/BOARD REVIEW, RECOMMENDATION Not Applicable. FINANCIAL CONSIDERATIONS Payment of $700 per new unit would obligate the Agency to approximately $420,000 if all 597 new units proposed in the 0 0 Agenda Item -2- October 6, 1983 project area were built in the first year. If all were built in the final year of the project, a debt of approximately $1.5 million could result. However, most of the new units cannot be constructed until Alipaz is extended to a bridge connection with Junipero Serra. As a result, new residential development will occur in segments over a substantial period of time. Actual payments are likely to be $50-100,000 and occur sporadi- cally as new development is completed. Some or all of these costs may be recoverable from developers whose projects benefit from Agency assistance. The Saddleback Community College District tax rate (currently about 7%) is applied to extraordinary tax increment in deter- mining additional payments. However, there is a ceiling of $5 million in extra tax revenue for the designated 5 -year periods. Thus, the maximum payment would be about $350,000 for any such 5 -year period in which there was $5 million or more in extraordinary tax increment. (Extraordinary tax incre- ment is that which exceeds $15 million at the end of any designated 5 -year period.) ALTERNATE ACTIONS 1. Approve the proposed participation agreement, and authorize the chairman to execute it subject to execution by the Saddleback Community College District Board and dismissal with prejudice of litigation attacking the validity of the Redevelopment Plan. 2. Do not approve the proposed agreement, and give other direction to staff. RECOMMENDATION By motion, approve the proposed participation agreement, and authorize the chairman to execute it subject to execution by the Saddleback Community College District Board and dismissal with prejudice of litigation attacking the validity of the Redevelopment Plan. Respectfully s bmitted, Thomas G. Merrell, Deputy Director Community Redevelopment Agency TGM:jtb Attachments ANALYSIS OF IMPACT UPON 0 SADDLEBACK COMMUNITY COLLEGE DISTRICT OF THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY Saddleback College has traditionally served a student population from the San Juan Capistrano area at a rate of 8.8% of the adult population or 6.6% of total popu- lation. These figures dropped during the current year to 7.4% and 5.5% respectively. It is reasonable to assume that this is an aberration due to economic conditions and state and college budget restrictions. It would be reasonable to assume that this pattern of enrollments would continue with a rise in the percentage not out of the question if more industry of a highly tech- nical nature is attracted by the project improvements. If the 597 dwelling units in the May, 1983 Agency's Fiscal Impact Report are assumed to be typical households, they can be expected to house 1612 persons (2.7 persons per household). This population in turn could be expected to produce 106 new commu- nity college students (6.6% of the total population). Additionally, if projected new commercial and industrial development produces the 5,300 jobs estimated in the San Juan Capistrano Unified School District, Fiscal Impact Report of June, 1983, an additional 233 new college students could be anticipated (5,300x.50x.088 = number of jobs times 50% times 8.8%). The number is arrived at by estimating that 50% of the new employees would be adult residents of the community college district. Since the ratio of adult studenTs to adult population is histor- ically 8.8 percent, this factor is used to estimate increase in students. While employers are often willing to assist in providing funding for employee education, they rarely, if ever, assist in providing facilities. The community college district's major concern is that funding for capital improve- ments is provided. Space for students is projected on the basis of ,1,000 square feet for each class of 30. This includes 900 square feet of classroom and classroom service area and 100 square feet of office and office service area. Construction costs of providing classroom and laboratory facilities on community college campuses currently are approximately $100 per square foot. In order to provide housing for the 106 projected new students from the redevelopment area, the cost would be estimated at: .' 106'Students Needed space 30 stu e1n s y sq. t. \\ Classroom and office space, 3500 s//q. ft. x $100 Architect fees @ 8% Furniture and equipment @ $45 per student Inspection and fees 0 3% Contingency @ 5% Total Project Costs Cost per household unit: $410,770 $687 per unit nT units 3,500 sq. ft. _ $ 350,000 28,000 = 4,770 _ .10,500 _ ' .17,500 $ 410,770 0 REDEVELOPMENT PARTICIPATION AGREEMENT (SADDLEBACK COMMUNITY COLLEGE DISTRICT) (68.38) It was moved by Director Friess, seconded by Director Buchheim and unanimously carried to approve the Redevelopment Participation Agreement with the Saddleback Community College District in concept and to schedule the matter for approval by the full Board at the meeting of October 6th, subject to approval by the Board of Trustees and dismissal of the pending litigation. 0 0 BOARD ACTIONS TAX INCREMENT AGREEMENTS - COUNTY OF ORANGE, CAPISTRANO DISTRICT (68.38) Wri— tten Communications: Report dated September 20, 1983, from the Executive Director, reporting on the status of negotiations with the County of Orange, the Capistrano Unified School District, and the Saddleback Community College District, to participate in or mitigate the effects of the Redevelopment Plan. The report recommends adjournment to September 29th to review the proposed final drafts of the agreements. Review of Draft Agreements: It was moved by Director Buchheim, seconded by Director Friess and unanimously carried to receive and file the report; and, to adjourn the Redevelopment Agency to Thursday, September 29th, in order to review the proposed final drafts of the agreements with the County of Orange, Capistrano Unified School district, as well as a draft agreement with the Saddleback Community College District. It is anticipated that adoption of the agreements will be scheduled for the meeting of October 6, 1983. San Juan Capistrano Community Redevelopment .Agency 0 Tom Clark Attorney at Law STRADLING, YOCCA, P. O. Box 7680 November 1, 1983 CARLSON & RAUTH Newport Beach, California 92660-0680 Re: Redevelopment Participation Agreement, Saddleback Community College District Dear Mr. Clark: Enclosed is a fully -executed copy of the agreement between the Community Redevelopment Agency and the Saddleback Community College District for mitigation of financial impacts on the District by the Redevelopment Plan. If you need any further information, please do not hesitate to call. MAH/cj Enclosure CC: 32400 Paseo Adelanto San Juan Capistrano California 92675 714-493-1171 Agency Director Deputy Director Murray Kane very truly yours, MARY ANN HANOVER Agency Secretary