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HomeMy WebLinkAboutRDA O.C. WTR DIST TAX 4-15-85 REDEVELOPMENT AGENCY .,'-" ---'---- NO. 7 DATE: APRIL 15, 1985 TO: FROM: SUBJECT: HONORABLE CHAIRlqAN & MEMBERS OF THE REDEVELOPMENT AGENCY WILLIAM A. HUSTON, EXECUTIVE OIRECTOR TAX SHAR]'NG AGREEMENT - ORANGE COUNTY WATER 01'STRTCT RECOI~,IENDATION That the Agency approve the attached tax sharing agreement between the Community Redevelopment Agency and the Orange County Water District. BACKGROUND The Agency is required by State Redevelopment Law to negotiate with a taxing agency affected by redevelopment financing. The Orange County Water District requested a share of the tax increment from the South/Central Project Amended Area based upon the District's claim that redevelopment financing would have an adverse effect upon the District. The agreement provides that the District will receive $2,000 per year of tax increment revenue generated from the South/Central Project Amended Area beginning in fiscal year 1990-g1. In exchange, the district agrees to not challenge the Agency's proceedings to enact the amended project area. WILLIAM A."HOSTON Executive Director WAH :ih Attachment AGREEMENT This Agreement is made and entered into this day of , 1985, by and between the ORANGE COUNTY WATER DISTRICT (the "District") and the TUSTIN REDEVELOPMENT AGENCY (the "Agency"). RECITALS WHEREAS, the Agency is a redevelopment agency existing pursuant to the provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) which has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Tustin; and WHEREAS, pursuant to Section 33327 of tDe California Health and Safety Code, the Agency has prepared, and the City Council of the City of Tustin has adopted a redevelopment plan by Ordinance No. 890, for-the South/Central Project (referred to herein as "Redevelopment Plan") which delineates a redevelopment project area (the "Project Area"); and ~EREAS, the Agency has additionally proposed an amendment to said Redevelopment Plan which delineates an additional redevelopment Project Area; and WHEREAS, the Redevelopment Plan and its amendment contains provisions for the distribution and allocation of property tax revenues, derived from property located within the Project Areas, to the Agency pursuant to California Health and Safety Code Section 33670(b) (hereinafter referred to as "Tax Increment"); and WHEREAS, but for the adoption of the Redevelopment Plan and its amendment, the District would receive that portion of tax revenues from the. Project Areas determined by application of the basic tax levy of $1.00 per $100.00 of taxable value ("Basic Tax Levy") levied on behalf of the District in each fiscal year to the incremental taxable value in the Project Area, as amended (the "District Portion"); and WHEREAS, the parties agree that the South/Central Redevelopment Plan and its amendment will cause a financial burden and detriment to the District in that there will be a net increase in the ground- water replenishment obligations of the District combined with a loss of property tax revenues produced by changes in ownership and new construction within the Project Area as amended; and WHEREAS, the parties agree that the payments provided for under this agreement are necessary to alleviate the abo~e financial burdens and detriments; and WHEREAS, pursuant to California Health and Safety Code 33401, the Agency may pay to the District an amount of money which, in the Agency's determination, is appropriate to alleviate any financial burden or detriment caused to the District by the adoption of redevelopment plans; and WHEREAS, for the above reasons, and to amicably resolve any differences regarding the Redevelopment Plan and its amendment, the parties hereto enter into this Agreement. -2- NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows: SECTION 1. In each year, commencing with fiscal year 1990- 91, that taxes are allocated to and received by the Agency pursuant to Section 33670 of the California Health and Safety Code or its successors, from the South/Central Redevelopment Project Amendment, the Agency will pay to the District the sum of $2,000 per year on or before August 1, 1990 and each succeeding year thereafter during the term of said Project. SECTION 2 Payments to District as set forth in Section 1 above, are subject to the following conditions and limitations: A. Agency's obligations under this Agreement are deemed to constitute "an indebtedness" within the meaning of Health and Safety Code Section 33675; B. The A~ency's obligation to make payments hereunder shall be limited to Tax Increment from the South/Central Redevelopment Project Amendment area received by the Agency, but are payable by the Agency from any source. SECTION 3. The District shall not file or participate in opposition to the Agency or City of Tustin in any lawsuit, attacking or otherwise questioning the validity, adoption, or approval of the South/Central Redevelopment Plan, as amended or any of the findings or determinations made or to be made by the Agency or the City Council of the City in connection therewith. -3- SECTION 4. This Agreement constitutes the entire agreement between the Agency and the District with respect to the matters set forth herein, and any changes, modifications, or amendments thereto shall be legally binding and effective only upon duly executed written amendment hereto. SECTION 5. This Agreement shall continue in effect until the Agency is deactivated pursuant to Section 33141 of the California Health and Safety Code or its successor. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. Approved as to fozm: RUTAN & TUCKER ORANGE COUNTY WATER DISTRICT BY John Garthe President BY Neil M. Cline Secretary Manager Approved as to Form TUSTIN REDEVELOPMENT AGENCY BY BY Agency Counsel Chairman ATTEST: Clerk -4-