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:
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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.
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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
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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
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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