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CIC Resolution 91-55COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA RESOLUTION NO. 91-55 APPROVING AGREEMENT BETWEEN THE COMMUNITY IMPROVEMENT COMMISSION AND THE ALAMEDA COUNTY SUPERINTENDENT OF SCHOOLS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 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 q.) by Ordinance No. 2559 on June 18, 1991; and WHEREAS, the Alameda County Superintendent of Schools (the "Superintendent") 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 WHEREAS, the CIC hereby finds that the Project will additionally stimulate growth which will cause an increased level of services to the Superintendent; and WHEREAS, the CIC and the Superintendent desire to enter into an agreement to authorize certain payments by the CIC to the Superintendent of a portion of the CIC's Tax Increments which is necessary and appropriate in order to alleviate the financial burden or detriment that is caused to the Superintendent by the Project; NOW, THEREFORE, THE COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The CIC hereby finds and determines that adoption of the Plan will cause a financial burden or detriment to the Superintendent. This finding is based on the fact that the Plan will result in an increase in the level of services to be provided by the Superintendent. Section 2. The CIC hereby finds and determines that the payments to the Superintendent, as set forth in the Agreement between the Community Improvement Commission of the City of Alameda and the Alameda County Superintendent of Schools pursuant to Health and Safety Code Section 33401 (the "Agreement "), a copy of which is attached hereto, are necessary to alleviate such financial burden or detriment. Section 3. The CIC hereby approves the Agreement and authorizes the Executive Director of the CIC to execute such Agreement on behalf of the CIC. * * * * * * ** AGREEMENT BETWEEN THE COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA AND THE ALAMEDA COUNTY SUPERINTENDENT OF SCHOOLS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 THIS AGREEMENT (the "Agreement") is made and entered into this day of , 1991, by and between the COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA (the "CIC") and the ALAMEDA COUNTY SUPERINTENDENT OF SCHOOLS (the "Superintendent"). Recitals A. The City Council of the City of Alameda adopted the Community Improvement Plan (the "Plan") for the Business and Waterfront Improvement Project (the 'Project") pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) by Ordinance No. 2559 on June 18, 1991. B. The Superintendent is a taxing agency with territory located within the boundaries of the Project (the 'Project Area"). C. 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") will result in that portion of property taxes levied each year on such increases in assessed values being paid to 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. D. Section 33401 of the Health and Safety Code allows the CIC to make any payments necessary to alleviate any financial burden or detriment caused to any affected taxing agency by the Project. E. The CIC has determined that the Project will 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 agencies, including the Superintendent, if the Project had not been established, however, because the Superintendent may lose property tax revenues produced by a change of ownership or new construction, or because the need for Superintendent services may increase due to the Project, certain actions as set forth below are necessary to alleviate the burden and detriment or potential burden and detriment to the Superintendent. F. In consideration of this Agreement determining the obligations of the CIC, the Superintendent is foregoing the right to contest the establishment of the Plan for the Project, including, but not limited to, filing a suit, and the CIC recognizes this as good and legal consideration. Agreements THE CIC AND THE SUPERINTENDENT HEREBY AGREE AS FOLLOWS: Section 1. Subject to the conditions, limitations and modifications in Sections 2 and 3 hereof, 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, the CIC agrees to annually pass through to the Superintendent twenty -one percent (21%) of the amount of the Superintendent's Share (as defined herein) of the CIC's Tax Increments which are payable to the CIC during each year of the Project and the Superintendent shall use these funds to benefit the Project Area. The Superintendent's Share, as used in this Agreement, shall mean the proportionate percentage share of Tax Increments that the Superintendent would have received as property taxes from the Project Area at the time of the effective date of this Agreement if there were no provision in the Plan for the allocation of Tax Increments to the CIC. Section 2. In the event (a) the amount of funds received by the Superintendent from the State is reduced by the State as a result of the Superintendent receiving monies from the CIC pursuant to Section 1 of this Agreement, (b) the Superintendent becomes a "basic aid" district, or (c) the current method of school funding changes and such an event results in the Superintendent no longer securing an advantage under this Agreement, the parties shall meet immediately in good faith and use their best efforts to revise this Agreement to carry out the original intent of the parties; provided, however, that the CIC's payment obligations to or on behalf of the Superintendent shall not exceed those set forth in Section 1 of this Agreement. If the CIC and the Superintendent are unable to revise this Agreement in a manner which enables the Superintendent to secure an advantage due to use of the monies in Section 1 of this Agreement, the amount of funds payable by the CIC to the Superintendent under Section 1 of this Agreement shall be reduced by the amount of the State's reduction. Section 3. In no event shall payments be made to the Superintendent by the CIC: (a) Which would exceed the amount, annually, that the Superintendent would have otherwise received from property taxes from the Project Area had the Project not been adopted; or 2 (b) The receipt of which would cause the Superintendent to violate the expenditure limitation for the Superintendent under Article XIII -B of the California Constitution; or (c) For purposes other than those specified in Section 33401 of the Community Redevelopment Law and those which will benefit the Project Area, and not in violation of any other provision of the Community Redevelopment Law or the laws of the State of California. Section 4. 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 XVI, Section 16, of the California Constitution and Sections 33670 -33677 of the Health and Safety Code. Section 5. The Superintendent agrees to authorize the CIC to subordinate its interest herein and to allow the CIC to pledge all or any portion of the tax increments otherwise payable to the Superintendent 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 Superintendent, its ability to make payments due to the Superintendent under the terms of this Agreement. Nothing in this Agreement shall give the Superintendent the right to approve CIC indebtedness, except as the CIC may request the Superintendent to subordinate its rights to payments under this Agreement. In the event that the CIC fails to make a payment because of the subordination provided for in this section, the CIC shall pay the amount owing as soon as reasonably possible thereafter together with interest from the date the payment was otherwise required to be made until the date paid, at an annual rate of interest equal to the annual average rate of interest earned by the Local Agency Investment Fund managed by the State Treasurer for the year preceding the time the payment is due. Section 6. In consideration of and as a condition to this Agreement taking effect, the Superintendent agrees to rescind paragraph 2 of its Resolution No. 15 -90/91 electing to receive monies pursuant to Section 33676(a)(2) of the Health and Safety Code. Section 7. The CIC and the Superintendent agree not to file and the Superintendent agrees not to engage in any litigation to directly or indirectly test or challenge the validity of the Project, the Plan, the Final Environmental Impact Report on the Plan (the "Final EIR "), the Ordinance or this Agreement; however, this Section shall not preclude the CIC from initiating a bond validation suit if it is deemed necessary by the CIC to assure adequate financing for the Project. Section 8. In the event litigation is initiated by anyone attacking the validity of the Plan, the Project, the Final EIR or the Ordinance and such litigation 3 results in the Plan being void or invalid, this Agreement shall become null and void. Section 9. This Agreement shall terminate upon the earlier of the expiration or termination of the Plan or of the provisions of the Plan authorizing the allocation to the CIC of Tax Increments for the Project. Upon termination of this Agreement, all obligations of the CIC to make payments to the Superintendent shall cease. Section 10. This Agreement shall not become effective until the Superintendent has complied with the condition set forth in Section 6 hereof. IN WITNESS WHEREOF, the CIC and the Superintendent have executed this Agreement as of the date first above written. ALAMEDA COUNTY COMMUNITY IMPROVEMENT SUPERINTENDENT OF COMMISSION OF THE CITY OF SCHOOLS ALAMEDA Title: ASSOCIATE SUPERINTENDENT By Title: APPROVED AS TO FORM: APPROVED AS TO FORM: By: 4 By: 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 Calbreath, Acting Secretary Community Improvement Commission E. William Withrow, Jr., Chairman Community Improvement Commission