HomeMy WebLinkAboutAgenda Statement 1988/09/06 Item 05
COUNCIL AGENDA STATEMENT
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ITEM TITLE:
Item 5
Meeting Date 9/6/88
Reso 1 uti on /37(;:2- Approvi ng a Cooperati on Agreement wi th
the County of San Di ego and the Redevelopment Agency of the
City of Chula Vista regarding Superior Courts Financing and
the Sharing of Tax Increments for the Town Centre II
Redevelopment Project Area
SUBMITTED BY: Commun i ty Development Di rector--'-:"~
REVIEWED BY: City Managerg 'h/5thS Vote: Yes No X )
As a result of adoption of Amendments 1 and 2 to the Town Centre II
Redevelopment Plan, the Agency will collect tax increments from the Chula
Vista Shopping Center and approximately 50 acres of additional developable
acreage which have been included in the Town Centre 11 Redevelopment Project
Area. The County has agreed to forego shari ng in tax increments from the
Project Area for 25 years, with a partial sharing thereafter, in return for a
$1.3 million contribution by the Agency to be applied towards the construction
of Superior Court facilities at the South Bay Regional Center. In June, 1987
tie Agency approved a preliminary agreement regarding the tax increment
ring. Based upon this agreement, a formal agreement has been prepared and
approved by the County Board of Supervisors on July 26, 1988. The Agency
adopted the agreement on September 1, 1988. It is now submi tted to the
Council for adoption.
RECOMMENDATION: That Council approve the Cooperation Agreement with the
County of ,San Diego and the Redevelopment Agency of the City of Chula Vista
regarding Superior Courts financing and the sharing of tax increments for the
Town Centre II Redevelopment Project Area.
BOARDS/COMMISSIONS RECOMMENDATION: In June 1987, the Redevelopment Agency
approved a preliminary tax sharing agreement. The Agency approved the
proposed agreement on September 1, 1988.
DISCUSSION:
The proposed agreement, which supersedes the agreement of June, 1987, was
developed in order to compensate the County for tax increments to be lost as a
resul t of the Town Centre I I Redevelopment Pl an Amendments. Normally, the
County receives approximately 27% of property taxes generated in Chula Vista.
Under the proposed agreement all tax increments for the Chula Vista Shopping
Centre and expansion areas, including the County's normal 27% share, will be
recei ved by the Agency for 25 years. Begi nni ng in the 26th year, 13.25% of
the increments will be received by the County.
, $1.3 mill ion payment for the South Bay Regional Center was determined to
adequate compensation for the County's losses. The agreement commits the
unty to finance the remainder of the costs for the Superior Court project.
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Page 2, Item 5
Meeting Date 9/6/88
Recent County estimates place the total design and construction costs at
$3,040,000 which would require the County to contribute $1,740,000 to the
project. Adequate available County funds have been identified for design and
construction. The proposed agreement requires that the County develop a
project budget and appropriate its share of the project funding by January 1,
1989. The project is scheduled to be completed by June 30, 1991.
As a result of the construction of the Superior Courts, the City should enjoy
the economic benefit of increased professional and service activity in the
downtown area. The Courts will also add a valuable government resource to the
Chula Vista area.
FISCAL IMPACT: The Agency's $1.3 million payment to the County is included
in the 1987 Series B Certificates of Participation of $6,600,000 issued for
the Superior Courts Project, refinancing of the Parking Structure and
construction of a Police Crime Lab. The $1.3 million Superior Courts portion
of the certificates are to be paid by the City and reimbursed by the Agency
from tax increment revenue generated in the Town Centre II Project. The 1987
Series A Certificates financed the Agency's share of the Chula Vista Shopping
Center Redevelopment project.
. 3725H
the City Council of
i ula Vista, Ca ifornia
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Dated