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CIC Resolution 91-54COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA RESOLUTION NO. 91-54 AUTHORIZING THE EXECUTIVE DIRECTOR TO PREPARE, PRESENT AND ENTER INTO AN AGREEMENT TO ALLEVIATE FINANCIAL BURDEN WITH THE ALAMEDA UNIFIED SCHOOL DISTRICT WHEREAS, the City Council of the City of Alameda (the "Council") adopted the Community Improvement Plan (the "Plan") for the Business and Waterfront Improvement Project (the 'Project") pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et by Ordinance No. 2559 on June 18, 1991; and WHEREAS, the Alameda Unified School District (the "District") is a taxing agency with territory located within the boundaries of the Project (the 'Project Area"); and WHEREAS, pursuant to Article XVI, Section 16, of the California Constitution, Section 33670 et seq. of the Health and Safety Code and the Plan, increases in the assessed values of the property within the Project Area above the sum of the assessed values as shown on the 1990-91 assessment roll (the "Base Year Roll") result in that portion of property taxes levied each year on such increases in assessed values being paid to the Community Improvement Commission of the City of Alameda (the "CIC") as tax increments (and not including any amounts paid to affected taxing entities pursuant to Section 33676 of the Health and Safety Code) ("Tax Increments") to pay the principal of and interest on loans, monies advanced to or indebtedness incurred by the CIC to finance or refinance, in whole or in part, redevelopment in accordance with the Plan; and WHEREAS, Section 33401 of the Health and Safety Code authorizes the CIC to pay to affected taxing entities any amounts of money which the CIC has found are necessary and appropriate to alleviate any financial burden or detriment caused to any affected taxing entity by the Project; and WHEREAS, the CIC hereby finds that affected taxing entities may lose property tax revenues produced by a change of ownership or new construction which would have been received if the Project had not been established; and WHEREAS, the CIC hereby finds that the Project will additionally stimulate growth which will increase the amount of property tax revenues generated from the Project Area which would not have been received by affected taxing entities if the Project had not been established; and NOW, THEREFORE, THE COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The CIC hereby authorizes the Executive Director to prepare and submit to the District an agreement to alleviate financial burden or detriment. Section 2. The agreement shall contain the following provisions: a. After the CIC has set aside any monies annually required to be set aside for the purposes of increasing and improving the supply of low- and moderate - income housing pursuant to Section 33334.2 of the Health and Safety Code and subject to the modifications and conditions contained in subsections b. and c. hereof, the CIC agrees during the life of the Plan to annually deposit an amount equal to four percent (4 %) of the Tax Increments in a special fund (the "District Capital Outlay Fund ") for use by the District for projects which meet the requirements of the Community Redevelopment Law. These deposits to the District shall be deferred for a period of seven years, will earn interest at a rate of seven percent (7 %) during the seven -year period and will be repaid to the District beginning in year eight over a ten - year period according to a self- amortizing schedule of equal payments with a five percent (5 %) interest rate. b. The CIC agrees to deposit in a special fund an amount equal to eight percent (8 %) of the Tax Increments for use by the District for increasing and improving the supply of low- or moderate - income housing (the "District Housing Fund "). The District's use of the monies in the District Housing Fund shall be in accordance with the Community Redevelopment Law and the terms and conditions of the Settlement Agreement between Clayton Guyton and Modessa Henderson and the City of Alameda, executed by the City of Alameda on April 25, 1990 (the "Settlement Agreement") and may be used primarily for low- and moderate- income District employees provided such priority use is in accordance with this Agreement, the Settlement Agreement and all laws. Any disbursement of funds by the CIC shall be consistent with the Community Redevelopment Law, this Agreement and the Settlement Agreement. In addition, until such time as the City of Alameda has met its share of the regional housing need as determined by the Association of Bay Area Governments for low- and very -2- low-income housing for the period ending April 1, 1995, the District's use of the District Housing Fund shall be subject to the Settlement Agreement, including but not limited to the following conditions: (1) The District Housing Fund shall be used only for very low-income and low-income housing and to the degree permitted by law, at least fifty percent (50%) of the District Housing Fund shall be used for very low-income housing. (2) The District Housing Fund may not be used to lease units for a period of less than 35 years. In addition, the District Housing Fund may not be used for providing operating and rent subsidies for units leased for less than 35 years. Notwithstanding the provisions in this paragraph, the District Housing Fund may be used for leasing units for a period of less than 35 years and the operating and rent subsidies of these units, where these units are used in a transitional housing or homeless housing program. (3) New units that are constructed utilizing funds from the District Housing Fund and are restricted to occupancy by very-low and low-income households shall remain so restricted for the life of the Plan. In the event the establishment of the District Housing Fund is challenged and invalidated, the Agency's annual deposit of funds into the District Capital Outlay Fund in subsection a. hereof shall be increased from four percent (4%) of the Tax Increments to six and one-quarter percent (6.25%) of the Tax Increments, commencing with the date of the invalidation. c. The District agrees to investigate the feasibility of levying and implementing a non-residential development impact fee. If, as a result of the District's investigation, the District levies and implements a fee in the full amount authorized by law (currently 26 cents per square foot), the total amount of monie? to b deposited under subsection a. hereof shall be made by the CIC. In the event the District does not levy and implement a development impact fee, the CIC shall not be required to deposit and pay to the District the monies in subsection a. hereof. In the event the District levies and implements a fee in an amount less than 26 cents per square foot, the annual amount to be deposited and paid to the District in subsection a. hereof shall be reduced in the same proportion as the 26 cents per square foot fee is reduced. In the event the District's levying of the fee set forth in this subsection c. is challenged in court, the CIC agrees to support the District's position on the fee by initiating the filing of an amicus brief. The District agrees to pay the CIC's costs and fees incurred for the preparation and filing of the amicus brief. -3- d. The agreement shall contain appropriate language subordinating the payments to the District to any bonds, notes or any other borrowing instruments which will enable the CIC to borrow monies which are secured by the Tax Increments not required to be paid to the District under the agreement. e. The agreement shall contain a provision that in the event the amount of funds received by the District from the State is reduced as a result of the District receiving monies from the CIC pursuant to this Agreement, the amount of funds payable by the CIC to the District pursuant to this Agreement shall be reduced by the amount of the State's reduction. f. The agreement shall contain a provision that the District shall not engage in any litigation challenging the validity of the establishment of the Project Area or the adoption of the Plan, and that if the District does engage itself in such litigation, the agreement shall be null and void. g. The agreement shall contain a provision that in the event any litigation is filed by any other party challenging the validity of the establishment of the Project Area and/or the adoption of the Plan, the effect of the agreement shall be suspended and the CIC shall not have any obligations under the agreement until a judgment becomes final upholding the validity of the Plan and the Project Area, and that if any such litigation is successful in invalidating the Plan and the Project Area, the agreement shall be null and void. h. The agreement shall contain any other provisions approved by the Executive Director which are either appropriate or required by law. Section 3. Upon approval by the District of an agreement which is consistent with the terms of this resolution, the Executive Director is hereby authorized to execute such agreement on behalf of the CIC. -4- I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Community Improvement Commission of the City of Alameda in special meeting assembled on the sixth day of August, 1991 by the following vote, to wit: AYES: Commissioners Arnerich, Camicia, Lucas, Roth and Chairman Withrow - 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said Commission this seventh day of August, 1991. Patricia Caibreath, Acting Secretary Community Improvement Commission E. Wil Commun lam Withrow, Jr., C airman ty Improvement Commission