HomeMy WebLinkAboutCC Resolution 14665 (400 Upper Toyon Detachment)1
RESOLUTION NO. 14665
A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL
APPROVING AND AUTHORIZING THE CITY MANAGER TO ENTER
INTO A TAX EXCHANGE AGREEMENT WITH THE TOWN OF ROSS IN
CONNECTION WITH THE PROPOSED DETACHMENT OF 400 UPPER
TOYON DRIVE (ASSESSOR’S PARCEL NO. 012-121-28) FROM THE
CITY OF SAN RAFAEL AND ITS ANNEXATION TO THE TOWN OF ROSS,
IN ADDITION TO THE PROPERTY OWNER’S OFFER OF PAYMENT
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES AS FOLLOWS:
WHEREAS, Raphael de Balmann (“Owner”) is the owner of the property situated
within the San Rafael city limits and commonly known as 400 Upper Toyon Drive,
California (Assessor’s Parcel No. 012-121-28) (the “Property”); and
WHEREAS, Owner has applied to the Marin Local Agency Formation Commission
(LAFCO) for approval of a reorganization of boundary lines to detach the Property from
the City of San Rafael and annex it to the Town of Ross (the “Reorganization”); and
WHEREAS, pursuant to California Revenue & Taxation Code section 99, before
the LAFCO may act on the proposed Reorganization, the City of San Rafael (“City”) and
the Town of Ross (“Ross”) must approve and enter into an agreement concerning the
exchange of property taxes derived from the Property; and
WHEREAS, the City Council has determined that even after the proposed
Reorganization, the City will continue to incur costs for providing services, including street
maintenance, police and fire services, to the Property, and is concerned with the negative
fiscal impact to the City from the loss of property tax revenues from the Property in view
of such ongoing service needs; and
WHEREAS, Owner has offered a one-time $95,000 payment to the City towards
the ongoing loss of tax revenue resulting from the Reorganization; and
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WHEREAS, the City and Ross have negotiated a tax exchange agreement
specifying that if the Reorganization is approved, property tax revenues derived from the
Property will be allocated 25% to the City and 75% to Ross in perpetuity; and
WHEREAS, the tax-exchange agreement was negotiated with respect only to the
Property, and in reliance on the fiscal offset offered by Owner; and
WHEREAS, approval of the Owner’s offer and the tax-exchange agreement with
Ross are purely monetary matters that can be seen with certainty will not have a
significant effect on the environment and are therefore exempt from environmental review
under the “common sense exemption” of the California Environmental Quality Act (14 Cal.
Code Regs. §15061 (a), (b)(3));
NOW THEREFORE BE IT RESOLVED by the San Rafael City Council as follows:
SECTION 1. Acceptance of Property Owner Offer.
The City Council hereby accepts the offer from Owner Raphael de Balmann to pay
the City of San Rafael the sum of $95,000 towards the fiscal effect of the loss of property
taxes derived from the Property after it is detached from the City and annexed to Ross,
and the City Manager is hereby authorized to execute a pre-detachment agreement with
the Owner in the form attached hereto as Exhibit 1, subject to final approval as to form by
the City Attorney.
SECTION 2. Approval of Tax Exchange Agreement.
In reliance upon the Property Owner’s agreement and payment to the City, the City
Council hereby approves a tax exchange agreement between the City and Ross for the
proposed exchange of annual property tax revenues from the Property based on a 25%
share to the City and a 75% share to Ross, in perpetuity after the proposed
Reorganization. Upon receipt of the Owner’s agreed payment, the City Manager is
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authorized to execute the tax exchange agreement attached as Exhibit 2, subject to final
approval as to form by the City Attorney.
SECTION 3. Attachments. Exhibit 1, “Pre-Detachment Agreement” and Exhibit 2,
“Tax Exchange Agreement” (with attached Exhibits A, Legal Description of 400 Upper
Toyon Drive Detachment Area and B, Map of 400 Upper Toyon Drive Detachment Area)
SECTION 4. Effective Date.
This Resolution shall be effective immediately upon its adoption.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the
San Rafael City Council held on the 6th day of May 2019, by the following vote to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
LINDSAY LARA, City Clerk
DocuSign Envelope ID: 92E535DD-AB46-47A7-AC5D-OA2255C4988A
PRE -DETACHMENT AGREEMENT
This Pre -detachment Agreement ("Agreement") is entered into on M &y 2 L_
2019 by and between the Cl FY OF SAN RAFAEL (`'City"), a municipal corporation, and
RAPHAEL DE BALMANN ("Mr. de Balmann"), owner of the real property located at 400
Upper Toyon in San Rafael.
RECITALS
1. Mr. de Balmann has submitted an application to the Marin Local Agency Formation
Commission seeking to detach his property located in the State of California, in the County of
Marin, as depicted on Exhibit A, described in Exhibit B, and referred to in this Agreement as the
"Property," from the City and annex the Property to the Town of Ross ("Application for
Reorganization").
?. City is empowered by the Cortese-Knox-llertzberg Local Government Reorganization
Act. Government Code section 56000 et seq. ("the Act") to consent to or to oppose Mr. de
Balmamr's Application for Reorganization.
3. City finds it to be in the public interest to detach the Property under the terms of this
Agreement and to support Mr. de Balmann's Application for Reorganization, as the Property is
located on the boundary with Ross, the closest surrounding residential parcels and adjacent
unoccupied parcels are in Ross, and the Property is located within the Ross School District.
4. City and the Town of Ross have negotiated in good faith to reach a property tax
revenue exchange agreement ("Tax Share Agreement"), which will be supplemented by a one-
time payment by Mr. de Balmann to City to mitigate its costs of providing Fire, Police, and street
maintenance services following detachment of the Property.
5. City has considered this Agreement at a noticed public meeting, and has found it to be
fair. just and reasonable. Each party has had opportunity to consult legal counsel with respect to
it.
NOW, THEREFORE, in consideration of the above recitals and of the following mutual
covenants, benefits and burdens, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:
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COVENANTS
1. BASIC PURPOSES. The purposes of this Agreement are to (a) facilitate Mr. de Balmann's
pursuit of the Application for Reorganization, and (b) provide for Mr. de Balma ni's supplemental
payment of property tax revenue to offset the provision of Fire, Police, and street maintenance
services by City following detachment of the Property.
2. DEFINITIONS.
Terms used in this Agreement shall have the following meanings unless the context
otherwise requires:
(1) "Agreement" means this Pre -detachment Agreement, including Exhibit A
attached hereto and incorporated into this Agreement by this reference.
(2) `'Application for Reorganization" means Mr. de Balmann's proposed detachment
of the Property from City and annexation to the Town of Ross.
(3) "Mr. de Balmann" means Mr. de Balmann and his successors in the Property and
permitted assigns in this Agreement.
(4) "City" means the City of San Rafael.
(5) "Effective Date" means the date this Agreement is signed by the later of the
Parties to do so.
(6) '`L.AFCo" means the Marin County Local Agency Formation Commission.
(7) "Parties" means Mr. de Balmann and City and `'Party" means either of them.
(8) "Property" means the real property described in Exhibit A.
(9) "Reorganization" means the approval by LAFCo, and the recordation of a notice
of completion with respect to that approval, of the Application for Reorganisation.
(10) "Town" means the Town of Ross.
3. TERM. This Agreement shall commence on the Effective Date and shall expire three years
thereafter, unless extended or amended in writing or when it is billy performed, ifsooner.
4. PRE -DETACHMENT OBLIGATIONS AND COMMITMENTS.
a. Consistently with and subject to this Agreement, Mr. do Balmann will pursue his
petition under the Act, or its successor, to detach the Property from the City and annex the
Property to the Town, and take such further actions as may be reasonably required to complete
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the Reorganization of the Property under such conditions as LAFCo may impose and are
reasonably acceptable to Mr. de Balmann and City.
b. Upon execution of this Agreement, Mr. de Balmann shall pay $95,000 to City in
mitigation for City's provision of Fire, Police, and Street services to the Property following
detachment. The City will refund the mitigation payment to Mr. de Balmann in its entirety within
30 -days if the City Council decides not to appro,,e a tax exchange agreement with the Town or
the Reorganization is not accomplished within the term set forth in Paragraph 3 above for any
other reason.
5. NON -OBLIGATION. Nothing in this Agreement obligates the City to approve a tax share
agreement with the Town or eliminates any rights the City possesses regarding Mr. de Bahnann's
Application for Reorganization.
6. NIISCELLANEOUS PROVISIONS.
a. SEVERABILITY, It is the intent of the Parties that the remaining terms, provisions,
covenants and conditions of this Agreement be in effect, valid, and enforceable should any term,
provision, covenant or condition of this Agreement be determined invalid, void or unenforceable.
'I he City Council for the City and Mr. de Balmann each declares it would have adopted this
Agreement and each section, subsection, sentence, clause, phrase, part or portion thereof:
irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases,
parts or portions be declared invalid or unconstitutional.
b. IN l ERPRFTATION AND GOVERNING Law. This Agreement and any dispute arising
hereunder shall be governed and interpreted pursuant to the laws of the State of California, and it
shall be deemed to have been executed in Marin County, California. This Agreement shall be
construed as a whole according to its fair language and common meanings to achieve the
objectives and purposes of the parties and shall be interpreted as if mutually drafted by the
parties, all parties having been represented by counsel in its negotiation and preparation.
C. SECTION I IEADINGs. All section headings and subheadings are inserted for convenience
only and steal I not affect construction of this Agreement.
d. CONSiRUCfION. AS used herein, the singular of any word includes the plural and the
masculine, feminine and neutral include the other genders as the context may require.
e. WAlvElt. Failure of either Party to insist upon the strict performance of any term,
covenant, condition, or provision of this Agreement by the other, or the failure of a Party to
exercise its rights upon the default of the other, shall not Constitute waiver of such Party's right to
demand strict compliance by the other Party with that particular term, covenant, condition,
provision, or with any other part of this Agreement thereafter.
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f. No 11 IIRD PARTY BENEFICIARIES; No ASSIGNMENT. This Agreement is made and entered
into for the sole protection and benefit of the Parties and their successors and permitted assigns.
No other person shall have any right of action based on this Agreement. Mr. de Bahnann shall not
assign any interest in this Agreement other than by transfer of title to the Property without the
prior written consent of City, which City may grant or deny in its unfettered discretion. Any
attempt to transfer an interest in this Agreement without such consent shall be null and void and
confer no right on any third party.
g. MU I UAE COVENANTS. The covenants contained in this Agreement are mutual and also
constitute conditions to the concurrent or subsequent performance by the Party benefited thereby
cif the covenants to be performed by such benefited Party.
h. SUCCESSORS IN INTtRFS F. The burdens of this Agreement shall be binding upon, and its
benefits shall inure to all successors in interest to the Parties to this Agreement and successors to
Mr. de Balmann in title to the Property. City may record the Agreement or a memorandum of it
against the Property.
J. FUR rHI_R ACTIONS AND INSTRUNIFNTS. Each of the Parties shall cooperate and provide
reasonable assistance to the other as allowed by applicable law in the performance of this
Agreement and the satisfaction of its conditions. On the request of either Party at any time, and
as allowed by applicable law, the other Party shall promptly execute, with acknowledgement or
affidavit, if reasonably required, and file or record such required instruments and writing and take
any action as may be reasonably necessary to carry out the intent and to fulfill the provisions of
this Agreement or to evidence or consummate the transactions it contemplates.
l:. AMEND IEN I'S IN WRrrING. phis Agreement may be amended, including to extend its
term. only by written consent of both Parties.
1. WARRANT Y of AUTHORITY. The persons signing this Agreement below hereby warrant
for the benefit of the Party for which they do not sign that they have actual authority to bind their
principals to this Agreement.
IN Wl 1 NESS WHEREOF, the Parties hereto have executed this Agreement on the day and year
first set forth above, by and between:
CITY:
CITY OF SAN RAFAEL, a municipal corporation duly
organized and existing wider the laws of the State of California
By: Attest:
Nam : Jim Schutz A Name: Lindsay Lara
Title: it) lanager Title: City Clerk
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DocuSign Envelope ID: 92E535DD-AB4647A7-AC5D-OA2255C4988A
APPROVED AS 10 I-ORVI:
Robert I-. Fpstein, C it) ttorn
NIR. DL BAL.IVIANN.
OocuSigned by:
�b"mV"
EAfi8WEURC
Rtlphael (ic Ballllatill
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TAX EXCHANGE AGREEMENT
BETWEEN THE CITY OF SAN RAFAEL AND THE TOWN OF ROSS
RELATING TO THE APPLICATION TO LAFCO FOR DETACHMENT OF
400 UPPER TOYON DRIVE FROM THE CITY OF SAN RAFAEL AND ITS
ANNEXATION TO THE TOWN OF ROSS
(Assessor's Parcel NOS. 012-121-28, 012-121-04, 012-121-05, 012-121-22)
THIS TAX EXCHANGE AGREEMENT ("Agreement") is made and executed in duplicate
this 1 day of A-vl A S t , 2019 by and between the CITY OF SAN RAFAEL,
a California charter city ("SAN RA AEL"), and the TOWN OF ROSS, a California municipal
corporation ("ROSS").
RECITALS
A. Raphael de Balmann, the owner of the real property situated within the city limits of SAN
RAFAEL commonly known as 400 Upper Toyon Drive, Kentfield, California, and bearing
Assessor's Parcel No. 012-121-28 (the "PROPERTY") has filed an application with the Marin
Local Agency Formation Commission requesting its approval of the detachment of the
PROPERTY from SAN RAFAEL and its annexation to ROSS (hereafter, the "Reorganization").
B The PROPERTY is more particularly described in Exhibit A attached hereto and shown on
the map attached as Exhibit B hereto, improved with a single-family residence, which is situated
on the border between SAN RAFAEL and ROSS and is served by Upper Toyon Drive, a SAN
RAFAEL public street.
C. Between the Property and ROSS Town Limits, there are three exempt parcels idenitified as
Assessor's Parcels Nos. 012-121-04, 012-121-05, 012-121-22, currently owned by the Marin
Municipal Water District ("MMWD Properties"). The MMWD Properties will need to be annexed
to ROSS as part of annexation of the Property to ROSS. Currently, the MMWD Properties are
exempt from ad valorem real property taxes being assessed. However, should the MMWD
Properties be subject to any ad valorem real property taxes in the future, this Agreement shall
govern the allocation of any sharing of the real property ad valorem taxes.
D. On June 6, 1978, the voters of the State of California amended the California Constitution by
adding Article XIIIA thereto which limited the total amount of property taxes which could be
levied on property by local taxing agencies having such property within their territorial
jurisdiction to one percent (1%) of full cash value
E. Subsequently, the California Legislature added Section 99 to the California Revenue and
Taxation Code, which requires a city seeking to annex property to its incorporated territory and
a city from which such property will be detached to agree upon an exchange of property taxes
derived from such property and available to each city following the reorganization.
F. In order to support the request of the PROPERTY's owner, SAN RAFAEL and ROSS wish to
work together to develop a fair and equitable approach to the sharing of real property ad
valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order
to encourage sound urban development and economic growth.
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G. Close cooperation between SAN RAFAEL and ROSS is necessary to maintain and improve
the quality of life throughout both cities and the County of Marin and deliver needed or desirable
services in the most timely and cost-efficient manner to all SAN RAFAEL and ROSS residents.
H. SAN RAFAEL and ROSS have, after negotiations, reached an understanding as to a rate of
exchange of property tax revenues to be made pursuant to Section 99 of the California Revenue
and Taxation Code.
I. This Agreement memorializes the understanding between SAN RAFAEL and ROSS and
constitutes an enforceable property tax transfer agreement, under Section 99 of the California
Revenue and Taxation Code.
NOW, THEREFORE, in consideration of the exchange of tax revenue, as provided for in
this Agreement, and for other good and valuable consideration, the sufficiency of which is
acknowledged by the parties, SAN RAFAEL and ROSS agree as follows:
AGREEMENT
Section 1. Definitions.
For purposes of this Agreement, the following terms shall have the meanings set forth
below:
(a) "Property Tax Revenue" shall mean revenue in the form of "ad valorem real property
taxes on real property", as said term is used in Section 1 of Article XIIIA of the California
Constitution and more particularly defined in subsection (c) of Section 95 of the California
Revenue and Taxation Code, that is collected from the PROPERTY and the MMWD Properties
and is available for allocation to SAN RAFAEL and/or ROSS.
(b) "Reorganization Date" shall mean the date specified by the Marin Local Agency
Formation Commission consistent with the Cortese -Knox -Hertzberg Local Governmental
Reorganization Act of 2000 (California Government Code § 56000 et seq.) as the effective date
of the detachment of the PROPERTY and the MMWD Properties from SAN RAFAEL and its
annexation to ROSS.
Section 2 General Purpose of Agreement.
The general purpose of this Agreement is to devise an equitable exchange between
SAN RAFAEL and ROSS of the Property Tax Revenue derived from the PROPERTY and
MMWD Properties, as required by Section 99 of the Revenue and Taxation Code
Section 3. Exchange of Tax Revenues.
On and after the Annexation Date, SAN RAFAEL and ROSS shall share the current
allocated SAN RAFAEL Property Tax Revenue collected from the PROPERTY and MMWD
Properties in perpetuity as follows:
ROSS share = 75%
SAN RAFAEL share = 25%
Section 4. Exchange by County Auditor,
SAN RAFAEL and ROSS further agree that all of the exchanges of Property Tax
Revenue from the PROPERTY and MMWD Properties required by this Agreement shall be
made by the County Department of Finance, and both SAN RAFAEL and ROSS agree to
mutually work with the County to effectuate the allocation agreed to herein.
Section 5. No Opposition.
In consideration of the exchange of tax revenue provided for in this Agreement, as well
as the pre -detachment agreement between SAN RAFAEL and the PROPERTY owner, SAN
RAFAEL and ROSS agree not to oppose the PROPERTY owner's application before the Marin
Local Agency Formation Commission to detach the PROPERTY and the MMWD Properties
from SAN RAFAEL and to annex it to ROSS.
Section 6. Dispute Resolution.
In the event of any dispute arising out of or relating to this Agreement, the parties shall
attempt, in good faith to promptly resolve the dispute mutually between themselves. If the
dispute cannot be resolved within 30 calendar days of initiating such negotiations or such other
time period as may be mutually agreed to by the parties in writing, either party may pursue its
available legal and equitable remedies, pursuant to the laws of the State of California.
Section 7 Third -party Beneficiary_
There are no third -party beneficiaries to this Agreement, and no third -party will have any
right to enforce any provision of this Agreement.
Section B. Modification.
This Agreement and all of the covenants and conditions set forth herein may be modified
or amended only by a writing duly authorized and executed by both SAN RAFAEL and ROSS
Section 9. Reformation
SAN RAFAEL and ROSS understand and agree that this Agreement is based upon
existing law, and that such law may be substantially amended in the future. In the event of an
amendment of state law which renders this Agreement invalid or inoperable or which denies any
party thereto the full benefit of this Agreement as set forth herein, in whole or in part, then SAN
RAFAEL and ROSS agree to renegotiate the Agreement in good faith.
Section 11. Effect of Tax Exchange Agreement.
This Agreement shall be applicable solely to the PROPERTY and MMWD Properties
and does not constitute either a master tax sharing agreement or an agreement on property tax
exchanges which may be required for any other reorganization of the boundaries of either SAN
RAFAEL or ROSS.
Section 12. Entire Agreement.
With respect to the subject matter hereof only, this Agreement supersedes any and all
previous negotiations, proposals, commitments, writings, and understandings of any nature
whatsoever between SAN RAFAEL and ROSS except as otherwise provided herein.
Section 13. Notices.
All notices, requests, certifications or other correspondence required to be provided by
the parties to this Agreement shall be in writing and shall be personally delivered or delivered by
first class mail to the respective parties at the following addresses:
TO SAN RAFAEL: Jim Schutz, City Manager
1400 Fifth Avenue
San Rafael, CA 94901
TO ROSS Joe Chinn, Town Manager
P.O. Box 320
31 Sir Francis Drake Boulevard
Ross, CA 94957
Notice by personal delivery shall be effective immediately upon delivery. Notice by mail shall be
effective upon receipt or three days after mailing, whichever is earlier.
Section 14. Approval. Consent. and Agreement.
Wherever this Agreement requires a party's approval, consent, or agreement, the party
shall make its decision to give or withhold such approval, consent or agreement in good faith,
and shall not withhold such approval, consent or agreement unreasonably or without good
cause
Section 15 Construction of Captions.
Captions of the sections of this Agreement are for convenience and reference only. The
words in the captions in no way explain modify. amplify, or interpret this Agreement
Section 16. Incorporation by Reference.
Exhibits A and B, attached hereto, are incorporated into this Agreement by this
reference.
Section 17. Authority.
The undersigned acknowledge that they are duly authorized to execute this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
set forth above.
CITY OF SAN RAFAEL
By: �.
M SC IJTZ, Cit Man ger
ATTEST:
t
LINDSAY LARA, City Clerk
APPROVED AS TO FORM:
LaI -,- L� Q7
ROBERT F. EPSTEN, Citytorney
TOWN OF ROSS
By: _�cq.:.—
JOliCHINN, Town Manager
ATTEST:
Attachments: Exhibit A -Legal Description of Property
Exhibit B - Map of Property
LINDA LOPEZ, Town berfV
BENJAMIN L. ST CK, Town Attorney
EXHIBIT "A"
Legal Description
For APNIParcel ID(s): 012-121-28
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN RAFAEL COUNTY OF
MARIN STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
LOT 24, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, "MAP OF OAKWOOD UNIT NO T: FILED FOR
RECORD ON APRIL 11, 1984 IN VOLUME 19 OF MAPS, AT PAGE 12, MARIN COUNTY RECORDS
APN. 012-121-28
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Exhibit "B"