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HomeMy WebLinkAboutResolution No. 1700 0 RESOLUTION NO. 170 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, AUTHORIZING THE CHAIRMAN TO SIGN AN AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA, THE CITY OF AZUSA, AND THE COUNTY OF LOS ANGELES(RE: REIMBURSEMENT OF TAX INCREMENT FUNDS). BE IT RESOLVED by the City Council of the City of Azusa, sitting as the governing body of the Redevelopment Agency of the City of Azusa, California, as follows: SECTION 1. The Mayor, as Chairman of the Redevelopment Agency of the City of Azusa, California, is hereby authorized to sign, on behalf of said governing body, an agreement between the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA,the CITY OF AZUSA, and the COUNTY OF LOS ANGELES. A copy of this agreement is attached hereto, marked EXHIBIT A. and by reference made a part hereof. SECTION 2. The Secretary is directed to attest the execution of this agreement. SECTION 3. The Secretary shall certify to the passage and adoption of this resolution, and it shall thereupon take effect and be in force. APPROVED AND PASSED this 3rd DAY of. December ., 1984. THE REDEVELOPMENT AGENCY THE CITY OF AZUSA, CALIFORNIA I HEREBY CERTIFY that the foregoing Resolution was duly a- dopted by the Redevelopment Agency of the City of Azusa, at a regular meeting thereof, held on the 3rd day of December 1984, by the following vote of the Board: AYES: DIRECTORS: CRUZ, COOK, CAMARENA, LATTA, MOSES NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE • 0 i 489? 7 AGREEMENT FOR ALLOCATION AND DISTRIBUTION OF TAX INCREMENT FUNDS (Fifth Amendment to the Redevelopment Plan for the Azusa Central Business District Redevelopment Project) THIS AGREEMENT made and entered into this day of A-�. Jr'IA,o,- , 1984, by and between the Azusa Redevelopment Agency, (the "Agency"), and the City of Azusa (the "City"), and the County of Los Angeles (the "County"). W I T N E S S E T H: WHEREAS, the City and the Agency intend to hold a joint public hearing on December 3, 1984 for the purpose of considering the approval and adoption of the Fourth and Fifth Amendments to the Redevelopment Plan for the Azusa Central Business District Redevelopment Project; and WHEREAS, the City may adopt Ordinance(s) approving and adopting the Fourth and Fifth Amendments to the Redevelopment Plan; and WHEREAS, Amendment No. IV amends the project area boundary by excluding Area 15 from the Azusa Central Business District Redevelopment Project Area, which was annexed as part of Amendment No. II to the Redevelopment Plan on July 20, 1981; the existing agreement for Amendment No. II is still in effect and applies to allocation and distribution of tax increment funds that pertain to the properties remaining as a result of the adoption of Amendment No. IV; and 0 0 WHEREAS, Amendment No. V (hereinafter referred to as Redevelopment Plan Amendment) provides for the reinstatement of Area 15 as part of the project area; and WHEREAS, the Agency has consulted with represen- tatives of the County pursuant to Section 33328 of the Health and Safety Code to determine the fiscal impact of the Redevelopment Plan Amendment and the anticipated allocation of tax increment monies to implement the Redevelopment Plan Amendment; and WHEREAS, this agreement is entered into upon the authority of Health and Safety Code Section 33+01 and the provisions of the Redevelopment Plan Amendment as required by Health and Safety Code Section 33338.1; and WHEREAS, by approval of this agreement, Agency and County hereby find and determine that any financial effects described in Health and Safety Code Section 33401 are hereby alleviated; and WHEREAS, the Agency agrees to not increase the limit of its use of tax increment revenue from the Central Business District Redevelopment Project (original and amended areas) of twenty-eight million nine hundred thousand ($28,900,000) for purposes of financing redevelopment activities within the entire project area for the entire life of the project. -2- NOW THEREFORE, for and in consideration of the foregoing, the parties do hereby agree as follows: 1. The 1984-85 assessment roll last equalized prior to the effective date of the ordinance adopting the Redevelop- ment Plan Amendment will be utilized as the base year assessment roll for allocation of taxes pursuant to Section 33670 of the California Health and Safety Code. 2. That portion of tax revenues generated by application of the basic tax levy to any increases in assessed valuation within the new Project Area added by this Redevelopment Plan Amendment which is allocated to the Agency pursuant to Health and Safety Code Section 33670 ("tax increments") shall be distributed as follows: (a) The Agency shall annually reimburse to the County and Flood Control District (sometimes collectively referred to as "County taxing entities"), fifty-two percent (52.0%) of the annual tax increment. The Agency may retain an amount equivalent to the County's pro rata share of the Agency's legally required contribution of up to twenty percent (20%) of the tax increment generated within the area added by this Redevelopment Plan Amendment to the Low and Moderate Income Housing Fund provided that the Agency: 1) deposits such amount into such fund; 2) -3- 0 0 makes a pro rata contribution to the fund equivalent to the County's contribution; and 3) makes a substantial effort to utilize such amount to improve and increase low and moderate income housing in areas included in this redevelopment project or areas outside current or future redevelopment project boundaries. To the extent the Agency contributes less than 20% to the fund, a pro rata reduction will be made in the County's contribution. (b) The Agency shall utilize the remaining forty-eight percent (48.0%) of the annual tax increment for redevelopment activities and to repay amounts previously deferred pursuant to Section 3 hereof. (c) The total amount of tax increments allocated and paid to the Agency for the entire project area (original and amended areas) shall not exceed twenty-eight million nine hundred thousand dollars ($28,900,000) for the entire life of the project and no portion of tax increment revenues distri- buted and paid to the County taxing entities shall be counted toward such total. The County's contribution to the Low and Moderate Income Housing Fund will be counted toward this total. The full allocation of tax increment revenues generated by -4- 0 0 the application of any tax rates levied for the purpose of paying voter approved indebtedness shall continue to be allocated to the Agency pursuant to Health and Safety Code Section 33670 and shall be counted toward such total. The foregoing annual tax increment percentage distribution for the Redevelopment Plan Amendment from the basic tax levy for the remaining life of the project are summarized as follows: County Taxing Entities Agency Total Reimbursement 41.6 -- 41.6 Project Activities -- 38.4 38.4 Housing Trust Fund 10.4 9.6 20.0 Total 52.0 48.0 100.0 3. Recognizing the Agency's need to utilize the annual tax increment from the new project area added by the Redevelopment Plan Amendment in the early years to service the debt on authorized indebtedness, the County agrees to defer timely receipt of tax increment reimbursement from the Agency. Such deferral shall be conditional on the following: -- The County shall only defer its share of tax increment for authorized indebtedness. The term authorized indebtedness as used in this agreement -5- shall limited to tax allocation revenue bonds or notes in a total principal amount sufficient to provide the Agency bond proceeds in the amount of four hundred fifty thousand dollars ($450,000) and shall not include loans or advances by the City. This represents the estimated total cost of phase I improvements as follows: Reconstruct Water $200,000 Utility System Widen and Reconstruct $250,000 Eighth St. from Vernon to Loren $450,000 -- The Agency is using its share of tax increment in any year to finance debt service for authorized indebtedness only. -- Upon Agency incurrence of such authorized indebtedness, the Agency shall notify the County Chief Administrative Office through submittal of an official copy of indenture documents and official statement executed by the Agency which includes the annual debt service schedule. If the projects included in authorized indebtedness are combined with other projects in short or long term financing, the Agency will provide a schedule documenting that portion of the indebtness attributable to the authorized indebtedness projects. These documents shall govern calculation of the amount of annual tax increments the County shall defer from its reimbursement share. -- The maximum annual amount to be deferred by the County taxing entities shall be determined by the difference between the projects included in authorized indebtedness pro rata share of the annual debt service requirement (including principal and interest payment) in the respective year, less the Agency's tax allocation share amount for the same year after adjusting for the amount actually deposited into the Housing Trust Fund. If this amount exceeds the County taxing entities tax allocation share amount, after adjusting for the amount deposited into the Housing Trust Fund, the maximum deferral in that year will be the County taxing entities allocation share amount less the amount deposited into the Housing Trust Fund. Any deficiency in tax allocation funds for authorized indebtedness, over and above the County's deferral, will be met by other Agency or City Funds. -- A record shall be kept of the amounts of tax increment reimbursement monies the County taxing agencies defer each year and said total amount shall be established as a deficit against the Agency's share of the annual tax increments. -7- -- The County taxing entities shall discontinue deferral of their reimbursement share and the Agency shall commence repayment of the deficit at such time as the Agency's share of the annual tax increment, after deducting the deposit into the Housing Trust Fund, exceeds its annual debt service obligation for authorized indebtedness. Said repayment shall not impact increment for other existing or future project areas. 4. The City and/or Agency shall not further amend the Redevelopment Plan in any respect affecting tax incre- ment generated in the Project Area added by Redevelopment Plan Amendment without prior written approval of the County Board of Supervisors. 5. The trust fund into which the low and moderate income housing amounts are deposited pursuant to Section 2 of this agreement shall be held in trust by the Agency and expended within a reasonable period of time for the stated purpose. Accumulated deposits, investment earnings, and itemized expenditures of balances in the fund shall be accounted for separately from all other Agency funds. The Agency shall annually provide such accounting, in the form of year-end financial statements, to the County. The Agency, in making any expenditures from the fund, shall give due recognition that a proportionate share of such expenditures and of the improvement in the supply of low and moderate income housing is a result of the cooperation of the County taxing entities in the Agency's redevelopment efforts. Any balance remaining in the trust fund on termination of the project will be utilized to pay any outstanding obligations of this Redevelopment Plan Amendment with any residual repaid to the County. 6. For administrative convenience, the parties agree that the County's Auditor -Controller shall annually determine the following sums and pay the same to the Agency and County: -- The total amount of tax increment generated by the Project Area and allocated to the Agency; -- The amount of tax increment that will be paid to the Agency and the amount of tax dollars to be retained as reimbursement by the County taxing entities based on the distribution established by this Agreement; -- Based upon notification from the Chief Administrative Office, the amount of County taxing entities reimbursement to be deferred and paid to the Agency or the amount of deficits against the Agency's annual share which shall be repaid to the County taxing entities. 9 0 7. Nothing in this Agreement shall relieve the Agency from the responsibility of filing a Statement of Indebtedness pursuant to Health and Safety Code Section 33675. The County's Auditor -Controller shall allocate and distribute the funds described in Health and Safety Code Section 33670(b) pursuant to the requirements of this agreement. If this Agreement is held invalid, in whole or in part, the parties agree that each will take all necessary steps, including formal action and execution of documents, to make the payments of tax increment in the manner and according to the allocation and distribution contemplated herein. 8. In the event that subsequent to the execution of this Agreement, the City and Agency revoke both the Fourth and Fifth Amendments to the Redevelopment Plan then (1) this Agreement for Amendment No. V is null and void, and (2) the terms and conditions of the Agreement for Amendment No. II remain in effect. -10- 0 0 IN WITNESS THEREOF, the City of Azusa Redevelopment Agency, the City of Azusa, and the County of Los Angeles, have caused this Agreement to be executed on their behalf by their duly authorized representatives. LARRY J. MONTEILH, Executive Officer - Clerk of the Board of Supervisors eputy Approved as to Form DE WITT W. CLINTON, County Counsel By: Dtvuty SN: 26c COUNTY OF COS ANGELES BY. Chairman of the Board of Supervisors AZUSA REDEVELOPMENT AGENCY Chaifman CITY OF AZUSA L Mayor . ADOPTED BOARD OF';0ERVISORS COUNTY OF LOS ANGELES 76 NOV 27 1984 LARRY J. MONTEILH EXECUTIVE OFFICER