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HomeMy WebLinkAboutReso 1988-13762 RESOLUTION NO. 13762 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A 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 The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City Council and the Redevelopment Agency of the City of Chula Vista have adopted Amendments One and Two to the Town Centre II Redevelopmerit Plan which have enabled the Agency to collect tax increment revenues from the Town Centre II Redevelopment Project Area and expanded the territory of the Town Centre II Redevelopment Project Area; and, WHEREAS, it has been determined that said amendments may have a significant fiscal impact on the County of San Diego; and, WHEREAS, payments can be made from the Redevelopment Agency to the County to mitigate fiscal impact from redevelopment activity and such payments may be allocated to a specific project; and WHEREAS, the Redevelopment Agency, City of Chula Vista, and County of ~dn Diego are mutually desirous of the development of Superior Courts facilities in the City of Chula Vista; and, WHEREAS, it is mutually desired by the Redevelopment Agency, the City of Chula Vista, and the County of San Diego to enter into an agreement which would compensate the County of San Diego for fiscal impact experienced as a result of the Town Centre II Redevelopment Plan Amendments One and Two, and which would provide for financing of the construction of four Superior Courts in Chula Vista; and, WHEREAS, an agreement has been prepared to accomplish the above mentioned aims of the Redevelopment Agency, City of Chula Vista, and County of San Diego, said agreement being attached hereto and incorporated herein as set in ful 1. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby approves 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. BE IT FURTHER RESOLVED that the Mayor is authorized to execute said agreement. WPC 3726H / ~ ?<L~ ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ;HUL,~ V~STA, CALIFORNIA, this 6th doy of September 9 88 , by the following vote, to-wit: ~YES: Councilmembers McCandliss, Nader, Malcolm, Cox, Moore ]AYES: Counci linetubers None ~,BSTAIN: Counci ]members None iBSENT: Counc i 1 members None TTEST~ ~ ~ TATb OF CALIFORNIA ) DUNTY OF SAN DIEGO ) ss. TY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Visto, Colifornia, ) HEREBY CERTIFY thot the obove ond foregoing is 0 full, true ond correct copy of RESOLUTION N0. 13762 ,ond thor the some has not been omended or repeoled. ~TED City Clerk AGREEMENT FOR COOPERATION BETl~EEN THE COUNTY OF SAN DIEGO AND THE CITY OF CHULA VISTA AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA This Agreement is made and entered into this 6th day of ~epte}ber , 1988 , by and between the Redevelopmerit Agency of the City of ChuTa Vista ("Agency, the City of Chula Vista ("City") and the County of San Diego ("County"). RECITALS A. The City Council of the City of Chula Vista adopted the Town Centre II Redevelopment Plan (Redevelopment Plan). on August 18, 1978, by Ordinance No. 1827. The City Council amended the Redevelopment Plan on May 19, 1987, by Ordinance No. 2207 to include the provision for the collection of tax increments. B. The Project Area, as described in the Redevelopment Plan adopted on August 18, 1978, encompasses approximately 65 acres consisting of the Chula Vista Shopping Center and the Sears retail center adjacent to the Chula Vista Shopping Center. C. The Agency and City contempl ate an addi ti onal amendment of the Redevelopment Plan to add approximately 147 acres to the Project Area, said acreage consisting of all or portions of sites listed in Attachment A. No more than 50.18 acres of the proposed area to be added wills be privately developed and the sites to be privately developed are classified as "private" on Attachment A. D. The City/Agency and County desire to rehabilitate the South Bay Regional Center to accommodate four new Superior Court facilities. ~,:~ E. Health and Safety Code Section 33401 provides that the Agency may pay to an affected taxing agency any amount of money which the Agency determines is appropriate to alleviate any financial burden or detriment caused to the taxing agency by the Redevelopment Plan. F. The parties herein agree that the allocation of tax increment funds to the Agency by virtue of the implementation of the Redevetopment Plan will cause a financial burden or detriment to the County in the amounts set forth herein to be paid to the County. In order to alleviate this burden or detriment, the parties hereto enter into this Agreement. AGREEMENT NOW, THFREFORE, for and in consideration of the foregoing premises, and for their mutual advantage and concern, the parties do hereby agree as follows: COL~ C 1. Funding for Superior Courts ! i 1.1 The City/Agency has sold Certificates of Participation in order to finance its share of the cost to rehabilitate the South Bay Regional Center to accommodate four new Superior Court facilities. A special fund of $1.3 million is held by the Trustee for the Certificates of Participation. All interest earned on the special fund accrues to the City/Agency. Funds may be disbursed from the special fund only as expenses are incurred on the rehabilitation project. 1.2 The County shall develop a Project budget and appropriate its share of the project funding by January 1,-1989, for the rehabilitation of the South Bay Regional Center. The City/Agency share of the Project costs will be $1.3 million. The County's share will be the total Project costs less the City/Agency $1.3 million. Payment shall be made by the County and City/Agency for actual project costs at the time they are incurred in equal proportion to the total project cost share of the County and City/Agency. 1.3 It is the intention of the parties that rehabilitation of the South Bay Regional Center to accommodate Superior Court facilities proceed as expeditiously as possible following establishment of the City/Agency $1.3 million special fund and the County appropriating its share of the project funding. It is intended that the project be completed by June 30, 1991. 1.4 The County may request an extension of the life of the special fund beyond June 30, 1991. This request shall be granted by the City/Agency if the County has completed plans for the renovations and entered into construction contracts to complete the Superior Court project. If the County has not completed plans for the renovations and entered into contracts to complete the Superior Court project, the County may request and the City/Agency shall consider an extension of the life of the special fund. 2. Property Tax Increments 2.1 The County shall receive no tax increments accruing from the Town Centre II Project Area, including "private sites" of the proposed expansion, from the first year tax increments are authorized (1988-89) through the twenty-fifth (25th) year. 2°2 In the event that the use or development of "public" sites generates property tax revenues, the County shall receive its normal share of any such revenues as if there were no Redevelopment Area with respect to such sites. Agency shall notify the County prior to the occurrence of any changes in ownership or development of "public" sites such that property tax revenues would be generated from the sites. -2- 2.3 Beginning in the twenty-sixth (26th) year, the Agency shall receive !~ 86.75 percent of the total tax increments accruing from the Project ~ ~ Area, and the County shall receive 13.25 percent. 2.4 Notwithstanding any other provisions of this Agreement, the County shall receive in full any property tax revenues attributable to increases in the rate of tax imposed for the benefit of the County. 2.5 In the event that the expansion and renovation of the Chula Vista Shopping Center and the Redevelopmerit Plan Amendment do not take place, or if all or part of the aforementioned 147 additional acres are deleted from the Redevelopmerit Project Area prior to the termination of the Redevelopment Plan, the City/Agency shall have the option to renegotiate the sharing of tax increments accruing from the Project Area (Sections 2.1, 2.2, and 2.3 of this Agreement). The County shall have the option to renegotiate the sharing of tax increments accruing from the Project Area (Sections 2.1, 2.2, and 2.3 of this Agreement) in .the event that expansion of the Project Area involves sites other than those listed on Attachment A. 3. Indebtedness The obligations of the City/Agency under this Agreement shall constitute an indebtedness of the City/Agency for the purposes of carrying out the Redevelopmerit Project, which indebtedness shall be payable only out of taxes levied by or for the benefit of taxing agencies in the Redevelopmerit Project Area, and allocated to the Agency pursuant to Health and Safety Code Section 33670 et seq. 4. Procedure for Payment of Tax Increments It is the intention of the parties that any amounts payable to the County pursuant to Section 2.3 of this Agreement shall be paid directly to the County by the County officials responsible for allocation and payment of tax increments. This Agreement shall be included as a part of the Statement of Indebtedness filed with the County each year by the Agency. 5. Termination of Redevelopmerit Project or Deletion of Expanded Redevelopmerit Area Acreage Nothing in this Agreement shall be deemed to limit the City's or Agency's right to terminate the Redevelopmerit Project or to delete all or part of the aforementioned 147 additional acres in the Redevelopmerit Area earlier than the date set forth in the Redevelopment Plan adopted by Ordinance No. 1827, as amended, so long as, prior to the termination of the Redevelopmerit Project or the deletion of all or part of the additional acreage, the County has received payments for the Superior Courts (pursuant to Sections 1.1, 1,2, 1.3 and 2.5 of this Agreement). City/Agency's obligation to make the $1.3 million payment to the Superior Courts project is contingent on the County appropriating its funding share for the Superior Courts project. -3- 6~ Defense against Legal Challenge ! The parties agree that in the event litigation is initiated attacking the validity of all or any portion of this Agreement, all parties shall in good faith defend and seek to uphold this Agreement. 7. General Provisions 7.1 Effective Date The date of this Agreement shall be the date when the Agreement shall have been signed by the City and the Agency. 7.2 Term of Agreement; Amendment This Agreement shall remain in effect during the entire term of the Redevelopmerit Project and shall not be revoked or revised except by a written amendment signed by the parties. This Agreement anticipates the expansion and renovation of the Chula Vista Shopping Center and the eventual amendment of the Redevelopment Plan to add approximately 147 acres to the Project Area. Said additional acreage shall be comprised of sites designated to be "public" and "private," as illustrated on Attachment A. 7.3 Legal Fees In the event either party to this Agreement is required to institute litigation to enforce its legal rights arising out of this Agreement, the prevailing party in such action shall be entitled, in addition to its other relief, to recover its costs and reasonable attorney fees. 7.4 Entire Agreement This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them. It is the intent of the Agency, the City and the County that the payments herein provided for constitute a full, complete, fair and equitable adjustment for all financial and other impacts which have resulted or may result during the term of this Agreement from the Redevelopment Project as adopted on August 18, 1978 and amended on May 19, 1987. By this Agreement, the parties resolve all differences with respect to the amendment of the Redevelopment Plan to provide for tax increment financing adopted on May 19, 1987, the anticipated amendment to the plan to expand the project area and the environmental review of both amendments. The County agrees to forebear suit or other action challenging the validity of the Redevelopment Plan, the Redevelopment Project Area, the fiscal impact portion of the Environmental Impact Report in relation to the Redevelopment Project, the Agency's waiver of the 20 percent set-aside of tax increment for low- and moderate-income housing, or any related matters. -4- IN WITNESS WHEREOF, the parties have caused this Agreement, consisting of 6 ~es, to be executed on the dates set forth opposite their signatures. COUNTY OF SAN DIEGO Approved and/or autlmfimd I1~ 81l ~ rk~of~h~ar~dd of Supe~isa~ of the Coual~ d k ~ C1 e of S~perVi sors ,~~ Approved as to Form and Legality: COUNTY COUNSEL Clerk n~ the B~ of Sum REDEVELOPMENT AGENCY OF THE CITY OF Approved as C~m: ' Dated: AGENCY COUNSEL WPC 3618H O~'T'~f ' Dated: -5- Attachment A POTENTIAL SITES TO BE ADDED TO THE TOWN CENTRE II REDEVELOPMENT PROJECT AREA Undevelopable/ Developable Street Total Acreage Acreage Acreage PUBLIC SITES Chula Vista Junior High School 13.64 2.68 16.32 "E" Street Trolley Station 3.56 .55 4.11 Civic Center 18.01 5.10 23.11 Eucalyptus Park 19.70 5.39 25.09 T 0 T A L 54.91 13.72 68.63 PRIVATE SITES Sweetwater Union High School District Center 6.40 1.53 7.93 Al's Trailer Haven 3.94 1.85 5.79 National Avenue Associates/ Dixieline 15.00' 17.12' 32.12 Fifth and "H" Swap Meet Site 9.82 1.24 11.06 Public Works Yard 7.14 1.95 9.09 Broadway/"E" Street 7.88 4.61 12.49 T 0 T A L 50.18 28.30 78.48 *Undevelopable acreage in the National Avenue Associates/Dixieline Site includes streets, wetlands and wetlands buffer areas. 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