CIC Resolution 91-51COMMUNITY IMPROVEMENT COMMISSION
OF THE CITY OF ALAMEDA
RESOLUTION NO. 91-51
APPROVING AN AGREEMENT BETWEEN THE
COMMUNITY IMPROVEMENT COMMISSION
AND THE COUNTY OF ALAMEDA
PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401
WHEREAS, the Community Improvement Commission of the City
of Alameda (the "CIC") is in the process of preparing a Community
Improvement Plan (the "Plan") for the Business and Waterfront
Improvement Project (the "Project"); and
WHEREAS, the County of Alameda (the "County") 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 sea. of the Health and
Safety Code and the Plan for the Project, increases in the assessed74:
values of the property within the Project Area above the sum of the:4-)
assessed values as shown on the 1990-91 assessment roll (the "Base„,,
Year Roll") will result in that portion of property taxes levied:4
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? 4'
and Safety Codes ("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 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'a redevelopment project; and
WHEREAS, the CIC and the County desire to enter into an
agreement to authorize certain payments by the CIC to the County
of a portion in the CIC's tax increments which is necessary and
appropriate in order to alleviate the financial burden or detriment
that is caused to the County 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 County. This finding is based on the face that the County will
incur a loss in property taxes as a result of the Plan.
Section 2. The CIC hereby finds and determines that the
payments to the County, as set forth in the Agreement between the
CIC and the County pursuant to Health and Safety Code Section 33401
(the "Agreement "), a copy of which is attached hereto as Exhibit
A, are necessary to alleviate such financial burden or detriment.
Section 3. The CIC hereby approves the Agreement in
substantially the form attached hereto as Exhibit A, and authorizes
the Chairman and the Secretary of the CIC to execute such Agreement
on behalf of the CIC.
DUPLICATE ORIGINAL
EXHIBIT "A"
AGREEMENT BETWEEN THE COMMUNITY IMPROVEMENT
COMMISSION OF THE CITY OF ALAMEDA AND THE
COUNTY OF ALAMEDA 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 "Commission ") and the COUNTY
OF ALAMEDA (the "County ").
Recitals
A. The Commission is in the process of preparing a proposed 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 sue.).
B. The County is a taxing agency with territory Located within the
boundaries of the Project (the 'Project Area ").
C. If the Plan is adopted, then pursuant to Article XVI, Section 16, of the
California Constitution, Section 33670 et sg_q. 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 Commission as tax increments (but
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 Commission 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 Commission to
make any payments necessary to alleyiate any financial burden or detriment caused
to any affected taxing agency by a redevelopment project.
E. A fiscal review committee was convened pursuant to Health and
Safety Code Section 33353 and meetings were held that were attended by the
Commission, County and other taxing agencies.
ALA /33401 ACMT /CDC 5/6/91
F. The Commission has determined that because of the loss in property
taxes the County could incur 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 County.
G. In consideration of this Agreement determining the obligations of the
Commission, the County is foregoing the right to contest the establishment of the
Plan for the Project, including, but not limited to, filing a suit, and the Commission
recognizes this as good and legal consideration.
Agreements
THE COMMISSION AND THE COUNTY HEREBY AGREE AS FOLLOWS:
Section I. Subject to the conditions, exceptions, modifications and
limitations in Sections 2 through 6 hereof, the Commission agrees to annually pass
through to the County fifty percent (50%) of the amount of the County's Share (as
defined herein) of the Commission's net tax increments (as defined herein) which
are payable to the Commission during each year of the Project, and the remaining
fifty percent (50 %) of the County's Share of the Commission's net tax increments
shall be retained by the Commission (the "County Contribution "). The County's
Share, as used in this Agreement, shall mean the proportionate percentage share of
tax increments that the County 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 Commission. The
net tax increments, as used in this Agreement, means all tax increments the
Commission receives from the Project Area less any monies required to be set aside
for expenditure for low- and moderate- income housing under Section 33334.2 of the
Community Redevelopment Law.
Section 2. During the time the Plan is in effect and the Commission
receives tax increments from the Project, the Commission agrees to monitor the
amount of sales tax received by the City from the Park Street area south of Lincoln
Avenue and Webster Street portions of the Project Area, as shown on Exhibit A
attached hereto (the "Excess Sales Tax Area "). In the year and any succeeding year in
which there is Excess Sales Tax, as defined herein, the amount of the annual County
Contribution set forth in Section 1 shall be reduced by the amount of the Excess
Sales Tax. Excess Sales Tax means the amount of cumulative sales tax revenues,
adjusted for inflation, generated from the Excess Sales Tax Area, received by the City
ALA /33;01 ACMT /CDC
2 5/6/91
after June 30, 1992, less the Base Sales Tax Revenues, as defined herein, and less sales
tax generated by the major projects listed on Exhibit B, which exceeds the
cumulative County Contribution received by the County after June 30, 1992. As
used in this Agreement, Base Sales Tax Revenues means an amount equal to the
sales tax revenues generated from the Excess Sales Tax Area and received by the City
for the July 1, 1991, to June 30, 1992, fiscal year.
Within ninety (90) days after the end of each fiscal year, the
Commission shall submit a report to the County which includes the calculations
necessary to determine whether there is Excess Sales Tax for that year.
Section 3. The Commission agrees to annually pass through to the County
one hundred percent (100%) of the County's Share of the Commission's tax
increments generated from the properties within the Project Area upon which the
major projects listed on Exhibit B, attached hereto, were under construction on or
prior to April 1, 1991.
Section 4. Upon receipt by the Commission of $566,000,000 in cumulative
tax increments from the Project, the County shall receive one hundred percent
(100%) of the County's Share.
Section 5. The Commission agrees to annually pass through to the County
eighty percent (80%) of the County's Share of the Commission's tax increments
generated from any properties listed on Exhibit C, attached hereto, which at the time
of the effective date of this Agreement are owned by the federal government or the
Peralta Community College District and are subsequently developed without
substantial assistance from the Commission.
Section 6. In no event shall payments be made to the County by the
Commission which would exceed the amount, annually, that the County would
have otherwise received from property taxes from the Project Area had the Plan not
provided for the division of taxes pursuant to Health and Safety Code Section 33670.
Section 7. The Commission agrees that it shall not use the County
Contribution for making improvements to City Hall, the Carnegie Building, the
library or the park along the estuary; however, nothing in this Section 7 shall be
deemed to limit the Commission's use of tax increment to improve these facilities,
other than the restriction on use of the County Contribution.
Section 8. In the event that after adoption of the proposed Plan, the
Commission amends the Plan, the Commission agrees to include in the
amendment improvement of the Park Street Bridge.
ALA /33401 AGMT /CDC
3 5/6/91
Section 9. The Commission agrees to make the payments due the County
under Section 1 of this Agreement within forty-five (45) days of the Commission's
receipt of tax increments.
Section 10. The Commission acknowledges that in addition to the payments
made by the Commission to the County under this Agreement, pursuant to
Health (Sr Safety Code section 33676(a)(2), the County intends to adopt a resolution
electing to receive taxes derived from increases in the assessed value of the taxable
property in the Project Area, as the assessed value is established by the Base Year
Roll, which are, or otherwise would be, calculated annually pursuant to
subdivision (f) of Section 110.1 of the Revenue and Taxation Code. The County and
the Commission agree that amounts received by the County pursuant to
Section 33676(a)(2) are not tax increments for the purpose of this Agreement or any
provision of the Community Redevelopment Law.
Section 11. This Agreement shall constitute an indebtedness of the
Commission 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 12. The County agrees to authorize the Commission to subordinate
its interest herein and to allow the Commission to pledge all or any portion of the
tax increments otherwise payable to the County under this Agreement in order to
secure the repayment of Commission indebtedness incurred for the Project;
provided the Commission demonstrates, to the reasonable satisfaction of the
County, its ability to make payments due to the County under the terms of this
Agreement. Nothing in this Agreement shall give the County the right to approve
Commission indebtedness, except as the Commission may request the County to
subordinate its rights to payments under this Agreement.
Section 13. This Agreement shall be effective as of the date that the
Ordinance enacted by the City Council of the City of Alameda adopting the Plan for
the Project becomes effective.
Section 14. The County 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
Environmental Impact Report on the Plan (the "Final EIR"), the Ordinance or this
Agreement; however, this Section shall not preclude the Commission from
initiating a bond validation suit if it is deemed necessary by the Commission to
assure adequate financing for the Project.
ALA/33401ACMT/CTJC
4 5/6/91
Section 15... _ In the event litigation is initiated attacking the validity of the
Plan, the Environmental Impact Report on the Plan, the Project or the Ordinance,
the effect of this Agreement shall be suspended and the Commission shall have no
obligation to make any payments to the County until a judgment becomes final
upholding the validity of the Plan, the Environmental Impact Report 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 become null and void.
Section 16. 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 Commission of tax increments for the Project. Upon
termination of this Agreement, all obligations of the Commission to make
payments to the County shall cease.
IN WITNESS WHEREOF, the Commission and the County have
executed this Agreement as of the date first above written.
COUNTY OF ALAMEDA
By:
Title:
APPROVED AS TO FORM:
By:
ALA /33401 ACMT /CDC
COMMUNITY IMPROVEMENT
COMMISSION OF THE CITY OF
ALAMEDA
By:
Title:
APPROVED AS TO FORM:
5 5/6/91
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EXHIBIT B
Major projects under construction on or prior to April 1, 1991 include the
following two projects:
1. Neptune Plaza, 660 Central Avenue, Assessor's Parcel
Number 74- 1328 -32.
2. Paragon Gateway, Phase 1, Mariner Square Loop, Assessor's Parcel
Number 74- 905 -04 -8.
ALA /33401AGMT /CDC Exhibit B 5/6/91
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EXHIBIT A
EXCESS SALES TAX AREA
ALAMEDA WEBSTER STREET
Page 2 of 2 5/6/91
EXHIBIT C
Properties located within the boundaries of the Project and owned by the
federal government or the Peralta Community College District on April 1, 1991,
include the following:
1. Nava] Supply Center, Oakland/Alameda, Facility, Assessor's Parcel
Numbers 74-905-2-3 and 74-905-4-2.
2. Federal Center, McKay Avenue, Assessor's Parcel Number 74-1316-26.
3. U.S. Naval/Marine Reserve, Clement Avenue, Assessor's Parcel
Number 71-289-01.
4. College of Alameda, Assessor's Parcel Numbers 74-905-6-2,
74-905-7-2 and 74-905-8-1.
ALA/33401AGMT/CDC Exhibit C 5/6/91
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 adjourned
regular meeting assembled on the fourth day of June, 1991, by the
following vote to wit:
AYES: Commissioners Arnerich, Camicia, Roth and
Chairman Withrow - 4.
NOES: None.
ABSENT: None.
ABSTENTIONS: Commissioner Lucas - 1.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said Commission this fifth day of June, 1991.
Dian 6 Felsch, Secretary
Community Improvement Commission
E. William Withrow, Jr., Cliairman
Community Improvement" Commission