2008-04-01 3-B SubmittalApril 1, 2005
Dear Mayor Johnson and Members of the Alameda City Council,
I spoke to you at the last city council meeting on the issue of the 1991 memo
regarding "pass through" money from BwXP to Alameda Unified School District. Your
subsequent memo regarding affordable housing did not answer some of the important
questions that X raised:
1. An audit is necessary to clarify the details of the account; amounts entering and
amounts leaving the account during the seventeen years of the account's
existence.
2. The rationale for the memo in the first place, since it appears there has been no
adherence to the terms of the memo for the past seventeen years.
3, I specifically asked, since nothing was done to fulfill the intent memo, why the
accumulated funds could not be renegotiated with the aim of financially assisting
our school district?
4. Certainly the amount far Capital outlay could be immediately transferred to the
school district budget. This is always an ongoing need.
Was this memo legal in the first place? Some of the criteria are questionable.
Finally r hope there are no other "lost" accounts. As you well know our schools are in
a financial crisis, r believe the city needs to demonstrate good faith in clearing up this
troubling arrangement.
~~
Gretchen Lipow
ZZ42 San Antonio Avenue
Alameda, Ca 94501
gretchenlipow@comcast.net
Re: Agenda Item #3-B
04.01.08 Council Meeting
Provided at meeting
AUSD and Redevelopment Funds
February 14, 2008
In 1991, the Community Improvement Commission
struck an agreement that rovides f of the City of Alameda and Alameda Unified Sch
p or redevelopment funds from the Business 1Naterfron o01 a+strict
be "passed-through" to AUSD. This was art of the s t Improvement Project BWIP
P ettlement for the Guyton lawsuit over the B ~ ~ to
uena Vista Aparkments.
The agreement provides fora "district housin f
Section 2. capital outla and Se 9 und" and a "district capital autlayfund" -see Reci
Y} ctron 3. ~housrng fund.} talc Section I, and
The capital outlay fund is to a for " a
related buildin s faci ' p Y p rf or all of the cost of land andlor certain ca ital im ro
g , hies and improvements incidental thereto, and im rov p P vements, including school-
are determined....to meet the requirements of the Communit p ements to existing buildings and facilities which
used primarily for low- and moderate-incom ~ Y Redevelopment Law." The district housin fund "m
e District employees. 9 ay be
The Community Improvement Commission -- not AU
City of Alameda, and not AUSD' SD manages these two funds. The show u vn t
s books. Further, these funds are not separatel main p he books of the
commingled with other City of Alameda Funds. See the email Y twined, but rather, the monies are
below from the City finance department ex lainin th'
p g ~s.
From: ssyoung@ci.alameda.ca.us jmai].to:ss~oung@ci.alamecla.ca.us
Sent; Thursday, k'ebruary 19, 2008 9:04 PM -~ 1
To: mowster@sbcgloba~..net
Cc: jboyer@ci.alameda.ca.ca.us,
Subject: RE: your request to thezCittlofCA~alameda.ca.us
Y ameda
Phe AUSD housing fund in total of $1, 059,128, is in line item as "BW
balance reserved for low & modeerate income housin IP project area special revenue -fund
g -part of the $5, 947,21" on page #28 of the G/30/07 CAFR.
~lhile the district capital outlay fund in total of $932,178. is
revenue -due to othex agencies -part of the $1, 023,71" also onn glee item as "BWIP project area special
p g #28 of 6/30107 CAFR.
The City claims that the low- and moderate-income
Bayport serve to meet the re housing at The Landing at Bayport the du lexes
quirements of the Guyton settlement agreement. p }and at Breakers at
Questions
Are any district employees housed at The Landis or at Bre
9 akers at Baypor f?
Were there any restrictions or preferences fvr AUSD e
housing fund monies were used it se mPloyees at The Landing or Breakers at Ba vrt? if A
ems there should have been. Yp USD dtstr~ct
Why are the AUSD district housing fund and ca ital
kept separate and broken out as a lin ~ p autlayfund monies not kept on AUSD's books? vVh
e item on the C1Cs books? y are they not
Since 1993, how much money has the BvvlP transferred
fund? Has AUSD built an low-cost ho to the district housing fund? How much to theca i
Y using reserved for District employees since 1993? p tal outlay
Has any money from the capital outlay fund been used t
$63 million in bonds forschool maintenan o actually maintain our schools? Measure C in 2044 a
ce, basically the same maintenance as provided for in t pproved
This increased taxes for Alameda residents and a ear he capital outla fund.
monies be used, reducin the fi3 m' ' pp s as a Irne item on our tax bill. Should the ca ital ou y
9 ~ ill~on in bonds, thereby reducing our tax bill an p tlay fund
more money for a new parcel tax this fall to keep our schools o e d leaving Alameda residents with
p nand our teachers employed?
References
Use of redevelopment money by schoal district: Califo '
mra Educafron Code Secfion 42238 and Secfion 949 90
Redevelopment law: California Healfh and Safef Code
y Secfrvns 33409, 33fi01 and 33fi76
CAFR: Cify of Alameda Comprehensive Financial Re o -
p rf, 200fi 2007
Agreemenf Between The Community lmprovemenf Com
mission ~f The Crty Qf Alameda And The Alameda Unifed S
Disfricf Pursuanf To Health And Safefy Code Secfion 3 chool
3409, November 92, 9999
.•
~`
'~1PLFCATE ORIGINAL,
AGREEMENT BETWEEN THE COh~IIviiJNlTy IMPROVEMEI~TT
COMMISSION OF THE CITY OF ALAMEDA AND THE gLAMEDA
UNIFIED SCHOOL DISTRICT PURS[1gN1- TO HEALTH AND
S TY CODE SECTION 33401
'T'HIS AGREEMENT (the "Agreement") is made and entered into this / Z
°~~'" 1991, by and between the COM - day of
OF THE CIZ-y OF ALA,MEDA (the "CIC") ~d M ALOE PROVEMENT CpI~~sIO,~
DISTRICT (the "District"). D`~ QED SCH40L
Recitals ~~.
A• The Ci Counal of ~=
tY the Ci of ,~
Co ~ ameda the C~ :~
mmunlty Im roVement ty Counal }ado ted the
P Plan the "Plan"} for P
Im rove ~~ the BuSZness and Wat
P meet Protect the Pro ect" erfront
~ }pursuant to the Co •
the State of California H mmuruty RedeVelo ment La
~ eat th and Safe Co P w of
tY de Section 33000 et s
No. 2559 on June I8 T99 . ---..~•) by Ordinance
, ~
$. The District is a #
axing agency with Cerrito Iocat
the Project the '?'ro'e f~ ~' ed within the boundar'
~ ~t Area }. yes of
C. Pursuan t to Articl •
. e x~, Seet~on i b of th .
Section 337 ~ e Ca~iforn~a Constitu .
0 ?t Se-~C . of the Health an tlon-
d Safety Cade and the
values of the ro er Plan increases in the a
P P ty within the Protect Area SSe55ed
shown I above the sum of the
on the T 990-9~ assessment r assessed values as
oII the „Base Year Rol "
proper taxes I I } writ resul t in tha .
tY evled each ear on t portzon of .
Y such increases in asse •
as tax increment ssed values bean aid
s abut not includin an g P to the CIC
to g y amounts paid to affecte .
Sectian 3376 of the H d taxing entitles urs
ealth and Safe Code ,~ P want
• tY ~ ~ 'Tax Incremen
and in Ceres t on Iaans is } to pay the rata
,monies advanced to or ' P pal of
. Indebtedness incurr
ar refinance, in whole ~ by the CIC to f.
or ~n part, redevelo ment in a Inance
D. P ccordanCe with th
Section 33401 of the H e Plan.
eaIth and Safe Cade
payments nec ~' aIIoWS the CIC
essary to ailevxate an finan ' to make any
taxis Y eial burden or detrimen
g agency by the Pro~ect. t caused to an affected
] Y
E. Section 33445
of the Communi R
ma with tY ed~Velopment Law •
Y- the consent of the Ci pr°vades that the CTC
tY Council- Pa aII or
installation c Y part of the cost of ac ' . .
. onstruction and renovation of qu~sltlon,
publicly~o~ed buildzn
g5- Fa~hhe5 or
L.
improvements if the Ci •
ty Counal determines tha
t such buildings, faalities
improvements are of ben ar
.ef i t to the Pro'e~ Area a
means ~ nd that there are no 0
of financin such build' ~~' reasonable
$ ings, facilities or im
provements.
F. Section 33679 of •
• the Communi Red .
c ty eve~.opmen t Law
amrrutting Tax ~c~ement m Provides that nor to
onies for the ose ~ P
land or P~u'P of paying all or art a
the installation and cons P f the value of
fruition of publicl -owned
must re are a su Y buildings, the Ci Co
P P mmary of such ro o ~ unci~
. , p P sed expenditures, hold a h
specified findin s, eanng and make certain
g .
~• Section 33678 •
of the Common? Re
ail ~ development Law r '
ocation and payment~of Tax p ovides that the
Increment monies to th
of taxes wi thi e CIC shall not be deem
n the meanie of Article ed proceeds
g ~II-B of the Californ'
Tax Increment moni is Constitution one if th
es are used for redevelo rile y °se
redevelo P nt activities which: ~7} ar
pment as defined in 5ectians 33 e
420 and 33o2I of the C
Law; ~Z) primaril benefi ommuruty Redevelo
. Y t the project area • and pmen t
em I ~ ~c~ are not used for the
P oyee or contractual services onI payment of
ess directly related to the
and 33~ZT of the Communi purposes of Sections 3302
ty Redevelopment Law.
H. The CIC has d '
eterrruned that because of th .
th a t m a be r e loss in pro r tax r
y p oduced b a chin e Pe tY evenues
Y g of ownershi or new •
incur due to th P construction that the D'
e Protect, certain actions a istrict well
burde s set forth below are neces
n and detriment or otential sary to alleviate the
P burden and detriment t .
I, The o the District.
purpose of this Agreement is ~
Housin F to: ~a~ provide, thr0e h err ,`
g and as defined in Secti g the Distnct ~~ ,~~~
on 3 hereof f ~ ~
shall rovide for ~ or a procedure pursuant to whi ~
P payments to be mad ch the CIC
e by the CIC to the Dis ~ .
far, the cost of Iow- an tract to reimburse and or
d modera to-~ncom ~ ~ paY
. e housing prv'ects or
District which mee# i programs carried ou
the requ~rernen is of t by the
the Corrun oral Red
~b~ provide, throe ~' eVeIoprnent Law• t
gh the District Ca ital ,and ~
P outlay Fund as defin fa
procedure pursuant to ed in ~'ction 2 hereof ~
which the CIC shall , for a ~
provide for pa end to ~ ~~
the District to reimb ~ be made b th
arse, and /or a for a y e CIC to
P Y , p rt or of I of the cos
caps taI improvement t of land and /or cert '
s, including school-relate ... din
inciden d buildin s, faaiiti ~
taI thereto, and im g es and ~ roVem ~
provem en is toe • P en is ~
determined b g ualding5 and facilities
Y the City Council and which are
the CIC to meet th .
Redevela meet La a requirements of the •
P w. Commune
~• In consideration
of this Agreement d ' .
the District is for etermining the obli ati
egging the ri ht to coat g vns of the CSC,
g est the establishm
ent of the Plan for the Pr
oJect,
including, but not lirni . .
Led to, fil~n a suit an
g ~ d the CIC reco .
consideration. gazes this as good and le
gaI
A reements
~ CrC AND ~ D
IS~CT ~REBY A
Secti CREE AS P~LL~WS:
on 7. For the u oSeS •
P rp of this A, cement •
the followin m 8T ,the follow2n ter
g eanings: g ~ shall have
a. "~o~unit Redev ~~
Y elopment Law me
Communi Redevel ans the California
~ opment Law as .
set forth xn Calr forma
Section 334DQ et se . Health and Safe
_. ~ ty Code
b. '~2nal F~,r ~
PI cans the Draft Environme
an and the comments a ntal Impact Re art o
nd responses thereto, P n the
c. "OrdlnanCe" means ~r •
dinance No. X559 ado
on June I8, I991, a rovi pied by the Ci .~
PP ng and ado hn the P ty Counal
P g Ian.
d. "Pro'e~'~ mea .
ns the Business and
e. ~ ~ Waterfront Im rov
'Protect Area means t F ement Protect.
` Pro' he land area within .
lect, as shown and de the boundaries of
scribed m the Plan. the
f. 'Flan„ mean
s the Communit ~
and Waterfront Im . r Y provement Plan for the
p ovement Protect, Busyness
g• ',Settlement ,~ eerne
into ~' nt means the Settle
between CIa ton Gu ment A reement
Y yton and Modessa g entered
b the Ci Henderson and the Ci
Y ~ of Alameda on A ~ of Alameda exe
pril ~, I99D, attached cuted
herein b refer hereto as Exhibit A •
Y ence. and incorporated
Section z• Sub'ect . .
J to the condz Lions mo '
Sections 3 difieat~ons and li
4, 5~ 6 and 8, and after m~tatxons set forth i .
the CYC has set acid n
set aside for the ur a ~y monies annuall re u •
p poses of lncreasin and I Y q gyred to be
income • g mpr0~ng ~e su I
hous~n ursuant PP y of low_ and m
$ P to Sec~on 33334 oderate~
dui .2 of the health an
ng the life ° f the P .. d ~afe~Y bode th
Ian to ann ' e ~~ a s
ugly ~~:e~os~~t ~n am ~~ ~
7"ax Increments in a °unt equal to four a ~-
_ ..._...._...... spe~a~ ..fund .Qf...the CIS ~ • p rCent ~4%} o f the
. the ~"
the D~str~ct f .,..... __...~..~:.._......... 'D~str~ct Ca Ital ~u ,,
or pro~ect5 which P flay Fund }for
meet the re uirerne use by ~ ~
Law• ~ nts of the Com
m~ity Redevelo meet
~~ P
The District a ees l ~
gr that the CIC ma ~
the Dis y defer the annual a
tr7ct capital ~utIa Fu m°~ts to be de Sz •
. y nd for the first seVe p° Led m
2n which the C n ~~} fiscal ears u
IC receives Tax y ~ IY 7 throw h
Yncrements the „ g June 30}
deferred d Deferral rer, mod" .
unng the Deferral. P }The total a.mo
er~od, plus sun le int unt
P crest on the defe
rred amount at a ra
to
. of seven r
pe cent ~7%} per annum s
hall be de osl ted in
ten ~Zd} an P the Dlstrxc# Ca i
. Waal equal ~nstallmen p tai ~utla Fund in
. is the "Deferral i'a ~- Y
fiscal year foZla ..~_~~ ~ ymen~ } commencin wi
wing the Deferral Perio $ th the fast
d. Comrnenan on •
the Deferral Perio $ the first fiscal ear •
d, interest on the un Y fouowln
paid balance of the S
during the Deferral P P~napal of the ~a,xnoun
eriod shall accrue at the ~ t deferred
simple in fetes t ra re of fi
annum, and shall be a able Ve peTCent ~~%~ r
P y to the District in ten ~
Defer ~ I ~~ equal ins taI •
al Payments. h'nents with the a
bove
Section 3, The ~I . .
C agrees to de asst in •
to ei h P a 5peaal fund of the
g t percent ~8%} of the T CIS an dInount u
~ fn~'ements for use eq al
im rovin by the District far i .
F g the supply of low- or nareas~ng and
moderate-income housin ,, .
Fund~,~• The District' g (the D~sh7ct Housi
s use of the monies in the ng
and in a l~is~c# Housin F
ccordance with the term g and shall be sub'ect to
s of this Agreement the I
Housing Element of ~ Settlement A ee~ne
the General Plan, and ~ nt, the Git}~s
Redeve aII the requirements i
lopment Law a Iicabl n the Cornmuni =
pP e to the CIC's low_ ty
established and moderate-lncom
pursuant to Sec~on 33334 a housing fund
.3. The District Housi
pr1marily for law and m ng Fund maybe used
oderare-income Distri
determined ct employees rovided
tha t such riorit u P the Drstr~ct has .
p y se is in accordance
terms and • . with this A cement .
cbnd~~ons of the Seal ~ ~ all applicable
ement Agreement and all la
notwithstandin the other ws. In addition and
~ provisions in this
Housin Agreement ertainin
g Fund, until such ' P g to the District
titre as the City of Alarne
housin need da has met ifs share
g as determined b ~e A °f the regional
Y ssoc2 a t~ on of Ba area
Very low-income housin Y Governments for I
g for the period endin °w" and
District Hou ' g April I, 199, the Dis ,
sing Fund shall be sub' ~~ s use of the
sect to the Settlement A
a. .An fund ~'eement.
Y 5thatarerea~dtoth .
ex ended f _• P e Dis#r~ct from Dis •
p °r law income and v ~~ Hous~n Fund -
ery low-income hous' g s
Agreement is in a Ong during the eriad
ffect shall be used on P the settlement
Iy for low-income .
hand to the extent and Very low-~ncom
permitted by Iaw, at leas a housing
hou ' t 50 percent shall be
sing}for the Iif a of th wed for ve low-i
e Plan, rY ncome
b. The District s
hall prepare an ann
Fund in accord ~ ua1 report on the Di '
once with the provisions of sect Housing
Section VII of the
In the event Settlement A ee
the establishment of ~ rnent.
and znva ' r the District ~ousi
odd#ed, the C'IC ng Fund ~s chau
s annual deposit of funds ' ended ~
utto the District Ca • ~
Section ~ hereof sh xtai •
all be increased fro p Outlay Fund 3n ~,
vn m f our percen t ~4 %n ,
e-quarter rc } of the Tax ~~'e ~ ,,~!
pe ent t6.~5%} of the Tax menu to six and .,, ~.
Increments, com ' f
invalidation. men~ng with the date o
f the
Section 4. The Dis .
tact agrees to ~nvesti at •
irn lementn g e the feds~b~lz of le '
P g a nan-1esidenti ~' vY~ng and
al deveIapmer~t rm ac
investi ation ~ p t f ~• ~~ as a result
g - the District levies and ' of the District's
implements a fee in the
law ~currentl 26 cen full amount autho '
Y is per square f oot} the t ~~ by
Sectio ataI amount of movie
n Z hereof shall be mad s t° be depa51#ed un
e by the CIC. ,~ th der
implement a de ~ e event the strict does n
Velopment im act fee th of levy and
P ~ e C7C shall not be r .
e Distr~~ the monies in equzred to deposit and
Section 2 hereof, In pay to
im I the event the District •
p ements a fee In an amau levies and
nt le5S than 26 cent
be de sited 5 Per Square foot, the an
pQ and paid to the District ' nual amount to
In Section ~ hereof shall
proportion as the Z~ ~ r~uCed in the
cents per square foot fee is red same
prohibit the Dist ' uced. Nothing in this
rlct from hearin a Section 4 shad
. g ppea~s as to the amount of •
appl1Cdbility to develo rn the impact fee ono .
p ent of a specific arcel u r l is
~nVernment P p rsuant to Section 53
Code, or from rantin ~~~ of the
$ g favorable decisions t
As Tong as such decision o appellants on these
s are based on reasonable matters.-~.
the District' e~dence acid do not i
s general authorit to Iev n any way affect
Y y and collect im act f
amount to ~ de asited P ees throughout the Di '
P and paid fo the District strict, the
of this Se shall not~be reduced
ct7on 4. In the event the Di Pursuant to the terms
strict"s levying of the fee
challenged in court th set forth in this Se .
r e CIC agrees tv su or ct~on 4 ~s
initiati • • Pp t the District's sitio
n g th e f ~Iln of an amp ~ p° non ~e f ee b
g cus brief. The Distri Y
incurred for th ct agrees to pay the CIC's
e preparation and film of the a costs and fees
S $ mucus brief.
ectxon 5. ~n the event the. a
mount of funds received b
State is reduced as a r Y the District fr
esult of the District recei ' om the
v~ng monies from the CzC
Sections Z and 3 of ur
this Agreement, the p suant to
amvun t of funds pa able b
pursuan t to Sections ~ and 3 ~ Y Y the CfC to the Di .
of this Agreement sha strict
State's red u ~ ~ red u ce d' b th
coon. Y e gaunt of the
. ~
ctlon The CIC's obli a '
g tion to make pa meats
Capita] ~utla Fund Y tp the District fro
Y pursuant to Section ~ h m the District
ursuant ereof and from the Dis '
P to Section 3 hereof i pct Housin Fun
s sub]ect to the folI g d
owing conditions;
a. Prior to March T st of
to de edch fiscal year within '
posit monies in the a which the CIC ~ o
pphcab]e funds th ~ bIlgated
rioriti e D~str~ct shall rese
P red housin ro am P nt to the CIC a lis
g p ~ sand pro ects and ~ t of
which ~ J a lxst of ca ital '
the D~s~ct has f P unprovement .
°~d are r wired b pralects
the ~ y the finanaal bur
Pro]eCt or are ro'e den or detriment
p ] cts wfuch benefit the Pr ' ~ caused by
b o]e~ Area.
• Prior to July Ist of ea '
de ch fiscax year within
posit monies in the a which the CIC is ob
pPl~cable funds the ligated to
' CSC and the Cz C •
tY Qun~ shall hold .
a public
hearing on the ca ital i
P mpravement pro'ects in ac
Comm I cordance with Section
unity RedeVelo ment La ~ 336 of the
P , wand shall also revie
pro arras. T w the proposed housin .
gT he CIC's review of the g PraJects or
Proposed capital im roVeme
under this A eemen ~ P nt and housin ro'e
~T t shall be limy tea tow g P ~ cts
Nether the ro'eCt .
under the Cornmuni P) s meet the r uuemen
ty Redevely meet Law ~ is
P and the terms and c • .
Agreement and, as to the onditions of this
District Housin Fund
Hou ' g - the Settlement A .
sing Element of the General P ~ greement and the CI s
Ian. The CI ~''
C shall a rove thv
the a Iicable r Pp se pro ects whi
PP equirements of the Ca ~ J ch meet
mmunity Redevelopment Law .
limited to, Sections 33334. , includin ,but not
~, 33334.3, 3340x, 334.43 g
conditio ~ 33~~$ and 3379, and th
ns of this Agreement, the Se a terms and
t#lement Agreement an ~ r .
which a royal sh d the City s Housln
pP all not be unredsona g Element,
bly withheld. The de .
Par'agr'aph shall not bed terminations s cified xn '
eemed to give the CI Pe this
a r C any additional re 1 •
PP ove the capital im roVement ~ story authority to
P or housing ro'eCts o
possesses unde P I der than the author' =~
r the Communit Redevel ity It
Y opment Law ar as e ~ •
Agreement. xpressly provided and '
er this
c. The District Housin F
Ca g an d shall be sub •ect to th .
mmunity Redevelo ment La ) e requirements in
P w Se bons 33334.IO and
surplus." Comm ~ 6 7 33334.72 regardin „
encing in the lift ear after g excess
d Y the year in which fu .. .
eposited in the District Hou ' nds are jn1t1all
sing Fund and each ear y
the District of Y thereafter, the A en
the amount which wool g cy shad inform
d cons t1 to to the Dis tri ~ „
District's "eXceSs su 1 ., ct s excess su Ius.,
rp us shall be based on th rP The
to be de osi to e ProPor~on by which the am
P din the District Housin ount required
g Fund bears to the total
deposited in the CIC's mount r uired to
Low and Moderate ~ be
Income Hous~n Fun
33334.2 of the Comm g d. In the event Secti
unity RedeVelo ment Law ' on
P zs amended to
Increment monies change the rce
that the CIC must set Pe nt of Tax
Di ~ ~ aside for Iow- and mod
5triCt s Excess S lus shall crate-income housin the
~'P be recalculated a ccor ' g'
Su ]us sh Jingly, Such that the
rp alI be eight ercent 8%a District's Excess
P ~ } of the Tax ~crem • .
Increments re u. ents divided b the r
q fired to be set aside f Y pe Centage of Tax
or Iow-and moderate`'
the time of execution income housin b th
of this Agreement the D• g Y e CIC. At
Low- and M istrict's proportionate shay
oderato-Income Fund ' ,e of the CIC s
~ forty percent ~4Q% ~ •
In the even ) the `District's Ex rr
t the District does no . , CeSS S lus .
t submit ell bl ~'P ~
coin I gi a housing pro'ects ar
P Y ~ ~ the terms of this ~ pr°grams th a t
Agreement within fa
the amount u~' C4} years from an '
of the District Hausln y Mme at which
. g Fund exceeds the Di
District s ExCeSs Su I s~~ s Excess S Ius th
rp us shall be returned urP e
fro to the CIC. An Iand
m District Housin Fun Y purchased b the Dis '
g d proceeds is an asse Y ~~
t of the District Hous'
zng Fund. In the
event the District purchases land with District Housing Fund monies and does not
commence construction of housing units in accordance with the terms and conditions of
this Agreement within five years of such purchase, the District agrees that the land, as an
unused asset of the District Housing Fund, shall revert and be conveyed to the ClC for
low- and moderate-income housing purposes, at no cost to the CIC. This condition must
be enforceable against the District through recordation of covenants or restrictions against
the applicable property which runs with the land.
Section 7. The CiC's obligation to make payments to the District from the District
. Housing Fund pursuant to Section 3, above, is subject to alI the requirements in the
Community Redevelopment Law pertaining to the CIC's low- and moderate-income
housing fund established pursuant to Section 33334.3, including, but not limited to, the
following conditions:
a. Pursuant to Sec~on 33334.3~b}, any interest earned by the District
Housing Fund and any repayments or other income to the District for loans, advances or
grants of any kind from the District Housing Fund shall accrue to and became a part of the
District Housing Fund.
b. Expenditures far District planning and administration of the District's
housing projects shall not be disproportionate to the amount spent far actual housing
production, improvement or subsidy.
~. District Housing Fund monies must be used within the City linnits,
and they may only be used outside the Project Area upon adoption of a resolution by the
CIC and the City Council that such use will be of benefit to the Project Area.
d. District Housing Fund monies must be spent on housing which is
available at affordable housing cast to persons and households whose incomes do not
exceed the low- and moderate-income levels, as defined in Section 5093 of the Health
and Safety Cade.
e. The District Hauling Fund may be used for any of the purposes
permitted under the Community Redevelopment Law including, but not limited ta, the
provision of subsidies tv, or for the benefit of, very low income households, lower
income households or persons and families of low- or moderate-income to the extent
those households cannot obtain housing at affordable costs on the open market.
f. Pursuant to~Section 33334.3~f}, any new or substantially rehabilitated
housing assisted from the ~ District Housing Fund must. remain affordable for the longest
feasible time, but not Iess than the periods of time set forth in that section, and must be
enforceable against the original owner and successors in interest by the District through
rt
~~
recordation of covenants or restrictions against the applicable property which run with
the land.
g. V1~ithin five ~5} months after the end of each fiscal year in which
morues have been disbursed from the District Housing Fund to the District, the District
shall provide the CIC with a report on the status and use of the District Housing Fund
monies disbursed to the District in compliance with the applicable requirements of
Section 33080.4 of the Community Redevelopment Law. This will enable the CIC to
include this information within its annual report to be filed with the Controller within
six (6) months after the end of the CIC's fiscal year pursuant to Section 33080 of the
Community Redevelopment Law.
h. At the end of forty ~4~} years, or any longer period of time required by
Section 33334.3 pursuant to Section ?~f}, the District shall have no further obligation to the
CIC and Jor the City to maintain the capital acquisitions made through the District --
Housing Fund and the use and disposition of all remaining assets, acquisitions areal and
persona17, and improvements shall be subject to the~~ sole discrerion of the governing
board of the District to use, lease, or dispose of as it deems to be in the best interests of the
District.
i. The District shall have the sole and absolute right to implement with
the re uirements of this section in any legal manner, including, but not limited to, the
9
right and power to enter into agreements with other public or private entities, including
but not limited to non-profit corporations or joint powers agencies. However, no
agreement shall,~~or shall be deemed. ta, relieve the District of any obligation or
requirement of this Agreement. The District agrees to consult with the CIC prior to
entering into any such agreement which would entail a third'' party's involvement in
carrying out the District's responsibilities and obligations related to the expenditure of
monies from the District Housing Fund.
j. The. District agrees to defend and hold the CIC and City harmless in
any acfiion brought against the CIC and/or the City with regard to the expenditure of funds
by the District from the District Capital outlay Fund and/vr the District dousing Fund.
notwithstanding the provisions in this subsection j, the CIC agrees to defend the CIC
andlor the City with regard to its approval of the projects based an its determinations
made pursuant to subsection b of Section ~ that the projects meet the requirements of the
Community Redevelopment Law, this Agreement, the Settlement Agreement and the
Cit}~s Housing Element.
9
Section S. In no event shad a ents be made to the District by the CIC:
p Ym
a. The receipt of which would cause the District to violate the
expenditure limitation for the District under Article XIII-B of the California Constiturion;
or
b. For purposes other than those specified in Section 33401 of the
Community Redevelopment Law and not in violation of any other provision of the
Community Redevelopment Law or the laws of the State of California.
Section 9. This Agreement shall constitute an indebtedness of the CIC incurred
in carrying out the Project and a pledging of Tax Increments from the Project to repay
such indebtedness under the provisions of Article X~TI, Section 16, of the California
Constitution and Sections 33b7~-33b77 of the Health and Safety Code.
Section ~ 0. The Dis#rict agrees to authorize the CIC to subordinate its interest
herein and to allow the CIC to pledge all or any portion of the Tax Ir~crernents otherwise
payable tv the District under this Agreement in order to secure the repayment of CIC
indebtedness incurred for the Project; provided the CIC demonstrates, to the reasonable
satisfaction of the District, its ability to make payments due to the District under the terms
of this Agreement. Nothing in this Agreement shall give the District the right to approve
CIC indebtedness, except as the CIC may request the District to subordinate its rights to
payments under this Agreement.
Section 71. The District agrees not to file or engage in any litigation to directly or
indirectly test or challenge the validity of the Project, the Plan, the Final EIR on the Plan,
the ordinance or this Agreement. If the District should engage in any such ligation, this
Agreement shall become null and void.
Section 1 Z. In the event litigation is initiated attacking the validity of the Plan, the
Final EIR on the Plan, the Project or the Ordinance, the effect of this Agreement shall be
suspended and the CIC shall have no obligation to make any payments to the District
until a judgment becomes final upholding the validity of the Plan, the Final EIR on .the
Plan, the Project and the Ordinance. If a judgment becomes final which declares the Plan,
the Project or the Ordinance invalid, this Agreement shall became null and void.
Section ~ 3. This Agreement shall terminate upon the earlier of the expiration or
termination of the Plan or of the provisions of the Plan authorizing the allacadan to the
CIC of Tax Increments for the~Project. Upon termination of this Agreement, all
obligations of the CIC to make payments to the District shall cease.
/ c~
IN V~TTNESS V1~HERE~F, the CSC and the District have executed this Agreement as
of the date first above wzitten.
ALAMEDA D SCH~L
DYSTRI~T
By.
r
Titie:
APPROVED AS T4 FARM:
By•
COMMLJI~'ITY IMPROVEMENT
COMMISSION OF THE CTIY OF
ALAMEDA
By
Title: G ,YP ~~ ~/~^
APPR D AS TO FORM:
By: l~