HomeMy WebLinkAboutCC Resolution 8340 (Redevelopment III)RESOLUTION NO. 8340
CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN RAFAEL APPROVING AN AGREEMENT WITH
THE COUNTY OF MARIN AND THE SAN RAFAEL
REDEVELOPMENT AGENCY TO PROVIDE FOR THE AGENCY
TO RECEIVE ADDITIONAL TAX INCREMENT REVENUE
AND FOR THE AGENCY TO MAKE CERTAIN PAYMENTS
TO THE COUNTY (REDEVELOPMENT III)
FINDINGS AND PURPOSES
The City, the County of Marin, and the San Rafael
Redevelopment Agency have entered into previous agreements
relating to the amount of tax increment revenue the Agency
receives from the project area governed by the Central San Rafael
Redevelopment Plan.
The City, the County and the Agency desire to revise their
previous agreements so as to allow the Agency to increase the
amount of tax increment revenue the Agency receives from the
project area in order to undertake additional activities that
will be beneficial to implementation of the Central San Rafael
Redevelopment Plan. To that end, the Agency staff has presented
to the City and the Agency a proposed agreement between the City,
the County and the Agency that would provide for the Agency to
receive additional tax increment revenue and for the Agency to
make certain payments to the County.
The execution and implementation of the proposed agreement
will benefit the Agency and the City of San Rafael by providing
additional funds for implementation of the Central San Rafael
Redevelopment Plan.
NOW, THEREFORE, BE IT RESOLVED as follows:
The City Council hereby approves the proposed agreement with
the County of Marin and the Agency presented to the City Council
and the Agency by the Agency staff and hereby authorizes the City
Manager to execute that agreement on behalf of the City subject
to such changes that the City Manager deems appropriate and do
not materially change the substance of the agreement.
I, Jeanne M. Leoncini, City Clerk of the City of San Rafael,
hereby certify that the foregoing resolution was duly and
regularly introduced and adopted at a special meeting of the City
Council on the aj_tj_day of FEBRUARY-, 1991, by the following vote,
to wit:
AYES: COUNCILMEMBERS Boro, Breiner, Shippey, Thayer & Mayor Mulryan
NOES: COUNCILMEMBERS None
ABSENT: COUNCILMEMBERS None
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JEAM". LEONCI I,
City Clerk
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COUNTY/AGENCY FISCAL AGREEMENT
This Agreement is made as of , 1991 by and
between the San Rafael Redevelopment Agency ("Agency"), the
County of Marin, Marin County Open Space District and Marin
County Transit District (collectively the "County") and the City
of San Rafael ("City"), with reference to the following facts:
A. In 1973 the Agency entered into separate but similar
agreements (111973 Agreements") with the County, the San Rafael
Elementary School District ("ESD"), the San Rafael High School
District ("HSD") and the Marin Community College District
("CCD"). Each of those agreements provided for limits on the
amount of tax increment revenue the Agency could claim and
receive pursuant to the Central San Rafael Redevelopment Plan
("Plan") and Health and Safety Code Section 33670. The tax
increment revenue that is available for allocation and payment to
the Agency pursuant to the Plan and Health and Safety Code
Section 33670 is referred to in this Agreement as "Tax
Increment."
B. On or about September 11, 1984, the Agency entered into an
agreement (111984 Agreement") with the County, the City, ESD, HSD
and CCD which superseded the 1973 Agreements and all amendments
to the 1973 agreements. On or about December 18, 1984 the
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Agency, the City, the County, ESD, HSD and CCD agreed to an
amendment (111984 Amendment") to the 1984 Agreement. The 1984
Agreement and the 1984 Amendment provided for an increase in the
Tax Increment the Agency could receive over what would have been
permitted under the 1973 Agreements.
C. On or about September 11, 1984, the Agency and the County
entered into an agreement ("County Agreement") providing for the
Agency to make certain payments to the County.
D. On or about September 4, 1984 the Agency, ESD, HSD, and CCD
entered into an agreement ("Schools Agreement") providing for the
Agency to make certain payments to a reserve fund for the
potential benefit of ESD, HSD and CCD. Prior to the date of this
Agreement, the Agency had made all the payments to the reserve
fund required under the Schools Agreement.
E. The Marin County Open Space District and the Marin County
Transit District were not parties to the prior agreements
referred in Paragraphs A, B, C and D, but benefitted from the
provisions of those prior agreements.
F. The parties wish to revise their previous agreements as set
forth herein to reflect changed conditions, to permit the Agency
to make improvements that will be of benefit to all the parties
14100X. P50 -2-
to this Agreement and to alleviate fiscal burden and detriment to
the County.
THEREFORE, the parties agree as follows:
1. Effective Date of Agreement. This Agreement permits
the Agency to claim and receive a larger amount of Tax Increment
than is permitted pursuant to the 1984 Agreement and the 1984
Amendment. The parties recognize that in order for the Agency to
claim and receive such greater amount of Tax Increment, the
Agency must also enter into an agreement or agreements with ESD,
HSD and CCD permitting the Agency to claim and receive such
larger amount of Tax Increment. Therefore, the parties agree
that this Agreement will not be effective until the fiscal year
("Effective Fiscal Year") in which the Agency has entered into
such an agreement or agreements with ESD, HSD and CCD. This
Agreement is expressly conditioned upon approval by the State of
California of the joint application of the City of San Rafael and
the Marin County Free Library for California Library Construction
Bond Act Funds (Proposition 85) and funding of the San
Rafael/Marin County Library by the State of california. If for
any reason the application is denied or the joint library project
is not funded, then this Agreement shall be null and void, and no
bonds may be issued pursuant to this agreement.
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2. Previous Agreements. Beginning with the Effective
Fiscal Year, this Agreement shall supersede the 1973 Agreement,
the 1984 Agreement, the 1984 Amendment, the County Agreement, and
all amendments to each of those agreements (collectively
"Previous Agreements"), and, beginning with the Effective Fiscal
Year, the Previous Agreements shall be null and void and of no
force or effect.
3. Claim of Increment. In any fiscal year beginning after
the Effective Fiscal Year, the Agency shall be entitled to claim
and receive Tax Increment in amounts not in excess of the
following amounts:
(a) The amount necessary to pay the debt service on
the Agency tax allocation bonds issued prior to the
date of the 1984 Agreement. For the purpose of this
subparagraph (a) and subparagraphs (b) and (c) below,
the term "debt service" shall mean any amount of
principal, interest or other payments the Agency is
obligated to pay to the trustee for the bondholders,
the bondholders or any other person or entity under the
terms of the agreements, indentures or resolutions
governing the bonds;
(b) The amount necessary to pay the debt service on
the Agency tax allocation bonds issued after the date
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of the 1984 Agreement and prior to the date of this
Agreement;
(c) The amount necessary to pay debt service on bonds
issued by the Agency in accordance with the provisions
of Paragraph 4 below;
(d) The amount necessary to meet the Agency's
obligations under Health and Safety Code Sections
33334.2 and 33334.6;
(e) The amount necessary to pay the Project Costs (as
defined in Paragraph 4 below) that are not funded or
not expected to be funded from the proceeds of bonds
issued by the Agency in accordance with the provisions
of Paragraph 4 below;
(f) The amount necessary to make the payments to the
County specified in Paragraph 5 below; and
(g) The amount, if any, necessary to make payments to
ESD, HSD or CCD pursuant to an agreement or agreements
between the Agency and ESD, HSD or CCD ("Potential
Schools Agreements") providing for the Agency to pay a
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portion of the Tax Increment to or for the benefit of
ESD, HSD or CCD.
The claim and receipts described in subparagraphs (a), (b),
(c) and (d) above shall be senior to and have priority over all
other claims and receipts. The claim and receipts described in
subparagraph (f) shall be senior to and have priority over any
claim or receipt pursuant to subparagraphs (e) and (g) above or
any other claim or receipt other than those specified in
subparagraphs (a), (b), (c) and (d) above; provided, however,
that the claim and receipts described in subparagraph (f) may be
on a parity with the claims and receipts described in
subparagraph (g) under the conditions specified in Paragraph 6
below.
The County shall pay to the Agency the Tax Increment for the
Effective Fiscal Year even if the Agency has not or does not
submit a timely claim therefor pursuant to Health and Safety Code
Section 33675.
Notwithstanding any other provision of this Agreement, (i)
the total amount of Tax Increment paid to the Agency over the
life of the Plan (including amounts paid prior to the date of
this Agreement) shall not exceed $240 million.
4. Issuance of Bonds. Beginning in the Effective Fiscal
Year, the Agency may issue bonds for the purpose of paying the
cost of carrying out the projects described in the attached
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Exhibit A ("Project Costs"), provided, however, that the Agency
may only issue such bonds if, at the time the Agency proposes to
issue the bonds: (i) the Agency reasonably expects that the
annual amount of Tax Increment or other revenue sources or assets
providing security for payment of the bonds will be sufficient to
pay annually the sum of the debt service on bonds previously
issued by the Agency, the Agency's obligations under Health and
Safety Code Sections 33334.2 and 33334.6 to the extent not funded
with the proceeds of bonds, the payment to the County pursuant to
Paragraph 5 below, and payments, if any, of Tax Increment
pursuant to Potential Schools Agreements, and (ii) the ratio of
the sum of the annual debt service on the proposed bonds and the
annual debt service on outstanding bonds previously issued by the
Agency to the amount of Tax Increment the Agency could claim and
receive in the fiscal year in which the bonds are proposed to be
issued is equal to or less than the ratio of the sum of "Annual
Debt Service -Existing Issues" for that fiscal year as shown on
the chart attached hereto as Exhibit B and "Annual Debt Service -
New Issues" for that fiscal year as shown on the chart attached
hereto as Exhibit B to "Projected Tax Increment" for that fiscal
year as shown on the chart attached hereto as Exhibit B.
Notwithstanding any other provision of this Paragraph 4, (i)
prior to December 31, 1993, the Agency shall not issue any bonds
secured by a pledge of Tax Increment if the issuance of such
bonds would cause the total amount of bonds issued by the Agency
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pursuant to this Paragraph 4 and secured by a pledge of Tax
Increment to exceed $5.3 million; (ii) prior to December 31,
1997, the Agency shall not issue any bonds secured by a pledge of
Tax Increment if the issuance of such bonds would cause the total
amount of bonds issued by the Agency and secured by a pledge of
Tax Increment to exceed $10.6 million; and (iii) prior to the end
of the term of this Agreement, the Agency shall not issue any
bonds secured by a pledge of Tax Increment if the issuance of
such bonds would cause the total amount of bonds issued by the
Agency pursuant to this Paragraph 4 and secured by a pledge of
Tax Increment to exceed $17.945 million. For the purposes of the
previous sentence, refunding bonds shall not be considered
issuance of bonds by the Agency and any bonds involving a pledge
of Tax Increment which is subordinate to the Agency's obligation
to the County under Paragraph 5 below shall not be considered
issuance of bonds by the Agency. At least sixty (60) days prior
to the issuance of bonds pursuant to this Paragraph 4, Agency
shall notify the County of its intent to issue such bonds, and
shall provide the County with the Agency bond sizing analysis and
all other fiscal information relative to the Agency's
determination that the bond issuance is reasonable pursuant to
this Paragraph 4. The bond sizing analysis and other relevant
fiscal information shall be submitted to an independent financial
analyst approved by both Agency and County for determination
whether there exists a reasonable expectation that all the
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Agency's obligations mentioned herein will be met. The Agency
will not issue any bonds in excess of those approved by the
independent financial analyst. In no event shall the Agency
issue any bonds which would be retired after the year 2020.
The parties recognize that the cost listed in Exhibit A for
the specific projects listed therein are estimates, and that the
actual cost for any particular project may be less than or
greater than the cost listed in Exhibit A; therefore the parties
agree that any amount reasonably needed for a particular project
shall be considered a Project Cost even if such amount is in
excess of the estimated cost of that project as set forth in
Exhibit A.
5. Annual Payment to County.
(a) From the Tax Increment paid to the Agency, the
Agency shall pay to the County in each fiscal year an
amount equal to (i) the annual property tax allocation
factor for the County (as determined pursuant to
Chapter 6 of Part 0.5 of Division 1 of the Revenue and
Taxation Code or successor provisions of law) with
respect to the project area governed by the Plan
multiplied by the amount claimed and received by the
Agency pursuant to subparagraphs (b), (c), (d), (e) and
(g) of Paragraph 3 above, less (ii) the amount of
$150,000 upon execution of a mutually acceptable
agreement between the Agency and County pertaining to
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construction of a library and only for so long as
provided in that agreement.
(b) The Agency shall claim the amount owing to the
County in a particular fiscal year pursuant to
subparagraph (a) of this Paragraph 5 as indebtedness to
be paid with Tax Increment. The payment to the County
pursuant to subparagraph (a) of this Paragraph 5 shall
only be paid from the Tax Increment received by the
Agency pursuant to Health and Safety Code Section 33670
and shall only be paid to the extent that the Agency
receives Tax Increment in excess of the amounts
received pursuant to subparagraphs (a), (b), (c) and
(d) of Paragraph 3 above. In the event the Agency
enters into Potential Schools Agreements, the
obligations of the Agency to make payments to the
County pursuant to this Paragraph 5, shall have
priority over the Agency's obligation to make payments
of Tax Increment pursuant to the Potential Schools
Agreement except as provided in Paragraph 6 below.
(c) If any payment to County is ever less than the
amount required by this Agreement, the shortfall shall
accrue to the benefit of the County with interest
computed pursuant to Code Civ. Proc. §1268.350, and
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shall be paid to the County as soon as Agency receives
Tax Increment in excess of the amounts received
pursuant to subparagraphs (a), (b), (c), (d) and (f) of
Paragraph 3 above.
(d) To accomplish the payments to the County pursuant
to this Paragraph 5, the Agency and County agree that,
in lieu of the County payment of Tax Increment to the
Agency and the Agency thereafter making the payment
required pursuant to this Paragraph 5 to the County,
the County may, at the time it makes a payment of Tax
Increment to the Agency, withhold from the amount of
Tax Increment paid to the Agency and thereafter retain
the amount owing to the County pursuant to this
Paragraph 5. The County shall, at the time it makes a
payment of Tax Increment to the Agency, provide to the
Agency a detailed statement setting forth the
calculations of the amount of Tax Increment and the
amount being withheld for the County pursuant to this
Paragraph 5. Nothing in this Paragraph 5 is intended
to preclude the Agency from disputing the amount of Tax
Increment payable to the Agency or the amount payable
to the County pursuant to this Paragraph 5.
6. Contents of Potential schools Agreements. The Agency
agrees that in the Potential Schools Agreements the Agency will
not, without the consent of the County, agree to make payments to
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ESD, HSD, or CCD from future Tax Increment in order to compensate
those districts for a loss of revenue due to future changes in
state law governing the system for State of California
subventions to school districts. However, the Agency and County
agree that the Potential Schools Agreements may provide for
payments to ESD, HSD, or CCD from Tax Increment to compensate for
the fact that the district is a "basic aid" district which does
not receive state subventions, for payments to ESD, HSD, or CCD
from Tax Increment in the Effective Fiscal Year, and for similar
payments to ESD, HSD, or ESD which do not involve the possibility
of the Agency compensating for a loss of revenue due to future
changes in state law governing the system of subventions to
school districts or similar contingencies. The Agency shall
submit a Potential Schools Agreement to the County for approval
which approval shall not be unreasonably withheld if the
Potential Schools Agreement conforms to the parameters outlined
above in this Paragraph 6. If the County approves a Potential
School Agreement pursuant to this Paragraph 6, then
notwithstanding any other provision of this Agreement, the
Agency's obligation to make payments from Tax Increment to a
District pursuant to that Potential Schools Agreement shall be on
a parity with the Agency's obligation to make payments from Tax
Increment to the County pursuant to this Agreement. If the
County approves a Potential Schools Agreement pursuant to this
Paragraph 6, then, thereafter, the Agency shall not amend that
Potential Schools Agreement to increase the amount of payments
1410OX.P50 -12-
from Tax Increment to a district without first obtaining the
approval of the county to that amendment.
7. Parties to Future Amendments. The consent and
agreement of the City, ESD, HSD or CCD to any future amendment to
this Agreement shall not be required.
8. Termination. This Agreement shall terminate on the
later of the end of the term of the Plan or the date when all tax
allocation bonds issued by the Agency are paid and discharged.
9. Intention of Agreement. It is the intent of the
parties that the annual sum of the amount the Agency pays to the
County pursuant to this Agreement plus the amount of property tax
revenue the County receives from property in the Project Area
shall not be less than the annual sum of the amount the Agency
would have paid the County pursuant to the 1984 Agreement, 1984
Amendment and County Agreement. If any reduction in the amount
received from the County or fiscal burden to the County results
from decreases in value of property in the Project Area,
decreases in the property tax rate in the Project Area, changes
in the structure of the property tax system under state law, or
other event relating to the tax increment provisions of the Plan,
the parties shall meet and confer in good faith to amend this
Agreement to alleviate any fiscal burden placed on the County as
a consequence of this Agreement and the changed circumstances.
lo. Legal Authority and Indemnification. The Agency
warrants that it will comply with all applicable laws in issuing
bonds or carrying out projects contemplated by this Agreement.
The Agency hereby agrees, at its own expense, to defend the
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County and to hold harmless and indemnify the County against any
losses the County may incur by reason of any third party claim or
suit that arises directly as a result of this Agreement or as a
result of the activities of the Agency to carry out the Plan;
provided, however, this indemnity shall not extend to any claim
or suit arising from the intentional or negligent act or failure
to act on the part of the County.
11. Counterparts. This Agreement may be executed in
counterparts.
SAN RAFAEL REDEVELOPMENT AGENCY
ATTEST:
J�Zency—r y By: Pamela N colai, Executive Director
CITY OF SAN RAFAEL
ATTEST • % �
. pity Clerk By: Pamela J. N'colai, City Manager
CO Y OF MARIN
By: Gary Gia mini, Chairman, AND
ON BEHALF OF:
MARIN COUNTY PEN SPACE DISTRICT
AND
ATTEST: Clerk
of'4 MARIN COUNTY TRANSIT DISTRICT
Clerk of he Boa�d
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EXHIBIT "A"
PRIMARY & SECONDARY PROJECTS
PROJECT COSTS
1991-2017
PRIMARY:
Canal Flood Improvements
$ 5,000,000
Canal Street Culvert Replacement
11000,000
- East San Rafael Park Improvements
1,000,000
Mahon Creek Improvements
4,500,000
Bret Harte/Lindaro Drainage
6,000,000
New Library Building
8,200,000
Andersen Drive Extension
2,000,000
Mission & Lincoln Improvements
125,000
Phase I Bellam Blvd.
4,000,000
Parking Structure/Lootens
4,000,000
Rafael Theater Purchase
500,000
General Agency Funds (27 year period)
17,000,000
SECONDARY:
Phase II Bellam Blvd. $12,000,000
Kerner Blvd. Extension 2,000,000
East San. Rafael Levee Improvements 2,000,000
Reconstruct Storm Drains 2,000,000
Albert Park Improvements 1,000,000
HOUSING:
Housing Set Aside Fund (27 year period) As required by law
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