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Riverside Co/Tax Increment Payments - Proj Area 2 89AGREEMENT BY AND BETWEEN THE COUNTY OF RIVERSIDE AND THE LA QUINTA REDEVELOPMENT AGENCY PERTAINING TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 2 This Agreement is made and entered into this day of JUL 51989 , 1989 by and among the County of Riverside (the "County"), the Riverside County Free Library District ("Library District"), the Riverside County Structrual Fire District ("Structural Fire District") and the La Quinta Redevelopment Agency (the "Agency"). R E C I T A L WHEREAS, by Resolution No. , the Planning Commission of the City of La Quinta (the "Planning Commission") established proposed boundaries for a redevelopment project area (the "Project Area" of "Redevelopment Project No. 2"). The Project Area as proposed is described in Exhibit "A" hereto, incorporated herein by reference; and WHEREAS, the La Quinta Redevelopment Agency (the "Agency") has formulated a redevelopment plan (the "Redevelopment Plan") for Redevelopment Project No. 2; and WHEREAS, the Redevelopment Plan contains provisions for the distribution and allocation of property tax revenues derived from property located within the Project Area to the Agency pursuant to California Health and Safety Code Section 33670(b) (hereafter referred to as "Project Area Tax Increment"); and WHEREAS, meetings have been held by representatives of the County and representatives of the Agency to discuss the fiscal impact of the project on the County; and WHEREAS, the County of Riverside (the "County") has negotiated on behalf of all entities and departments with respect to which the members of the Board of Supervisors serve on the governing board; and WHEREAS, the County has negotiated on behalf of the County Free Library District (the "Library District") and the County Structural Fire District (the "Structural Fire District"), both County governed districts; and WHEREAS, pursuant to California Health and Safety Code Section 33401, the Agency may pay to the County, the Library District and/or the Structural Fire District, as a taxing agencies with territory located in the Project Area, an amount of money which, in the Agency's determination, is appropriate to alleviate any financial burden or detriment caused to the JUL 5 1989 3.!a> (10 County, the Library District and/or the Structural Fire District by the inclusion of territory within the Project Area by the Redevelopment Plan; and WHEREAS, the parties agree that the allocation of all the tax increment revenue to the Agency as a result of the implementation of the Redevelopment Plan as proposed would cause a financial burden and detriment in that there will be a net increase in the quality and quantity of County services provided by the Riverside County General Fund, Library District Fund and Structural Fire District Fund; and WHEREAS, the parties agree that the payments provided for under this agreement are necessary to and are sufficient to alleviate the above financial burdens and detriments; and WHEREAS, for the above reasons, and to amicably resolve any differences regarding the Redevelopment Plan, the parties hereto enter into this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions contained herein, the parties hereto agree as follows: Section 1 The words and terms in this Agreement, unless a different meaning clearly appears from the context, shall have the meanings set forth as follows: (a) "Agency" shall mean the La Quinta Redevelopment Agency. (b) "City" shall mean the City of La Quinta a municipal corporation. (c) "Community Redevelopment Law" shall mean Part 1 of Division 24 of the Health & Safety Code (commencing with Section 33000). (d) "County" shall mean the County of Riverside, a political subdivision of the State of California, and its successors. (e) "County Portion" shall mean that portion of the taxes allocated to and received by the Agency as Project Area Tax Increment from the Project Area pursuant to Health & Safety Code Section 33670(b) resulting from the general purpose tax levy of the County. For purposes of this Agreement, the percentage used by the Agency in calculating such share shall be the same percentage of the "frozen base" from the Project Area which is allocated and paid to County (or its successor) pursuant to Health & Safety Code Section 33670(a) as of the date of adoption of Redevelopment Plan for the Project, namely 25.53% of the 1% levy. 06/25/89 3142n/2338/004 -2- (f) "Fiscal Year" or "Year" shall mean the period from July 1 to and including the following June 30. (g) "Library District" shall mean the County Free Library District; and (h) "Library District Portion" shall mean that portion of the taxes allocated to and received by the Agency as Project Area Tax Increment from the Project Area pursuant to Health & Safety Code Section 33670(b) resulting from the general purpose tax levy of the Library District. For purposes of this Agreement, the percentage used by the Agency in calculating such share shall be the same percentage of the "frozen base" from the Project Area which is allocated and paid to the Library District (or its successor) pursuant to Health & Safety Code Section 33670(a) as of the date of adoption of Redevelopment Plan for the Project, namely 2.8% of the 1% levy. (i) "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project No. 2 as approved by Ordinance No. (j) "Structural Fire District" shall mean the County Structural Fire District, or County government district. (k) "Structural Fire District Portion" shall mean that portion of the taxes allocated to and received by the Agency as Project Area Tax Increment from the Project Area pursuant to Health & Safety Code Section 33670(b) resulting from the general purpose tax levy of the Structual Fire District. For purposes of this Agreement, the percentage used by the Agency in calculating such share shall be the same percentage of the "frozen base" from the Project Area which is allocated and paid to Structural Fire District (or its successor) pursuant to Health & Safety Code Section 33670(a) as of the date of adoption of Redevelopment Plan for the Project, namely 6.02% of the 1/% levy. (1) "Term" means the period of time the Redevelopment Plan remains in effect. Section 2 (a) The Agency shall pay to the County each Year an amount equal to one hundred percent (100%) of the Library District Portion which is received by the Agency in such Year. (b) Unless and until the Structural Fire District ceases to function as the exclusive provider of fire prevention and fire suppression services to the Project Area, the Agency shall pay to the County each Year an amount equal to one hundred percent (100%) of the Structural Fire District Portion which is 06/25/89 3142n/2338/004 -3- received by the Agency in such Year. Commencing at such time as the Structural Fire District ceases to function as the exclusive provider of fire prevention and fire suppression services to the Project Area and continuing thereafter, the Agency shall make no additional payments to the County in respect to the Structural Fire District Portion. (c) Until the Project Area Tax Increment reaches the level of Five Million Dollars ($5,000,000) annually, the Agency shall pay to the County each Year an amount equal to fifty percent (50%) of the County Portion which is received by the Agency in such Year (the "Pass Through Portion") and the Agency shall retain the other fifty percent (50%) of the County Portion which is received by the Agency in such Year (the "Retained Portion"). After the Tax Increment reaches the Threshhold Level, the Agency shall pay to the County each Year an amount equal to one hundred percent (100%) of the County Portion which is received by the Agency in such Year. (d) At the County's option and upon mutual agreement of the Agency, the Pass Through Portion may be retained by the Agency to be used to finance new County facilities or land (costs) that benefit the County's mission and serve the population of the City. (e) The Agency shall repay to the County an amount equal to the sum of the annual Retained Portions received by the Agency in each Year during the Term in which the Project Area Tax Increment has not reached the Threshhold Level (the "Repayment Amount"). No interest shall accrue on the Repayment Amount and the Agency shall be under no obligation to repay any amount other than the Repayment Amount defined herein. The Agency repayment to the County of the Repayment Amount under this Section 2(e) shall be made in ten (10) even annual installments and the Agency's obligation to make repayment shall begin in the Year following the Year in which the Threshhold Level has been reached. The obligation to make repayment under this Section 2(e) shall not be a general obligation of the Agency or the City and repayment shall only be made to the extent that Project Area Tax Increment revenues have been received by the Agency. (f) Payments pursuant to this Section 2 are subject to the conditions and limitations set forth in parts (a), (c) and (d) of Section 4 of this Agreement. Section 3 Until the Year following the Year when the Project Area Tax Increment reaches the Threshhold Level, it is agreed and acknowledged by the County that the Agency may issue bonds and assume obligations to the fullest extent permitted by law, and that the Agency may pledge all or any Retained Portion(s) to 06/25/89 3142n/2338/004 -4- the repayment of any such obligations. The County agrees that it shall promptly approve and execute such documents as are necessary or convenient to implement this Section 3 and facilitate the issuance of bonds (or other indebtedness) by the Agency, so long as such documents are consistent with this Section 3. Section 4 Payment to the County is subject to the following conditions and limitations: (a) Agency's obligation under this Agreement is deemed to constitute "an indebtedness" within the meaning of Health and Safety Code Sections 33670 and 33675. (b) Unless contrary to law, the County Auditor -Controller shall pay the amounts due to the County under this Agreement directly to the County, rather than have such amounts transferred by the Auditor -Controller to the Agency prior to payment to the County. Funds paid by the Auditor -Controller pursuant to this Agreement shall be deemed to be constructively received by the Agency. The receipt by the County of funds referred to in this Agreement (whether transmitted by the Agency or the Auditor -Controller) shall discharge the obligation of the Agency to make such payment hereunder. If, for whatever reasons, the Auditor -Controller refuses to pay the amounts due to the County under this Agreement directly to the County, then the Agency shall pay to the County the amounts due pursuant to this Agreement during each Year within a reasonable period after Agency receives the Project Area Tax Increment allotment from the County Auditor -Controller provided that payments in relation to allotments received between July 1 and December 31, of any Year shall be made no later than the following February 28; and that payments in relation to allotments received between January 1 and June 30, of any Year shall be made no later than the following August 30. (c) The Agency's obligation to make payments hereunder shall be limited to Project Area Tax Increment from the Project Area received by the Agency. The City shall have no financial obligation by virtue of this Agreement, and shall not be responsible for the discharge of obligations of the Agency herein. (d) Notwithstanding any other provisions of this Agreement to the contrary, the Agency's obligation to make payments to the County under this Agreement shall not: (i) exceed the amount of property tax revenues which would have been received by either if all the property tax revenues from the Project Area had been allocated to all the affected taxing agencies without regard to the division of taxes required by Health and 06/25/89 3142n/2338/004 -5- Safety Code Section 33670; (ii) violate the expenditure limitation under Article XIIIB of the California Constitution of such entity; or (iii) be contrary to an order of a court of competent jurisdiction or contrary to any provision of the laws of the State of California. (e) No payments shall be made by the Agency from the Project Area Tax Increment to any agency or division of the County (or any agency administered by the County) except as expressly set forth in Section 2 of this Agreement or as expressly set forth in Section 2 of that certain Agreement dated , 1989, by and between the Agency and the County of Riverside Superintendent of Schools pertaining to the Redevelopment Plan for Redevelopment Project No. 2. The County certifies that it has not at any time requested and does not now request the receipt of revenues pursuant to Health and Safety Code Section 33676(a)(2) in connection with the Project. Section 5 The County agrees and covenants that it shall not file or participate in opposition to the Agency in any lawsuit attacking or otherwise questioning the validity of the Redevelopment Plan, any statement of indebtedness consistent with this Agreement, or any of the findings or determinations made by Agency or City Council of the City in connection with such Redevelopment Plan. Section 6 This Agreement constitutes Agency and County with respect and any changes, modifications legally binding and effective amendment hereto. Section 7 the entire agreement between the to the matters set forth herein, or amendments thereto shall be only upon duly executed written This Agreement shall become effective the date last executed below and shall continue in effect until Agency or its successor is deactivated pursuant to Section 33141 of the California Health and Safety Code; provided that this Agreement shall terminate automatically and be of no further force or effect in the event that the Redevelopment Plan is not adopted on or before December 31, 1989, or in the event the adoption of the Redevelopment Plan should be set aside or annulled as the result of litigation. 06/25/89 3142n/2338/004 -6- IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. 51989 Dated: JUL e-- COUNTY OF RIVERSIDE Approved as to form: Dated: By 11f 1 Char n, of pervisors TEST: GERALD A. MALONEY, C r s DEPUTY QUINTA REDEVELOPMENT AGENCY w By: Chairman ATTEST: /l A % Age y Secre ary Approved as to Form: AMA CNR/IA 4AAt Agency General Coftsel Approved as to Form: 4gentys&pecial Counsel 06/25/89 3142n/2338/004 -7- 0 EXHIBIT "A" Project Area [To Be Inserted] 06/25/89 3142n/2338/004 -8-