Riverside Co/Tax Increment Payments - Proj Area 2 98MEMORANDUM OF UNDERSTANDING AND AGREEMENT
BY AND BETWEEN THE COUNTY OF RIVERSIDE AND THE
LA QUINTA REDEVELOPMENT AGENCY PERTAINING TO THE
IMPLEMENTATION OF THE COOPERATION AGREEMENT FOR
THE REDEVELOPMENT PLAN FOR PROJECT AREA NO. 2.
This Memorandum of Understanding is made and entered into this 28th day of April, 1998, by and
among the County of Riverside ("County"), the Riverside County Free Library District ("Library
District"), the Riverside County Structural Fire District ("Structural Fire District"), collectively the
"County Entities," and the La Quinta Redevelopment Agency ("Agency"), collectively ("Parties").
WHEREAS, the Parties entered into that certain Cooperation Agreement entitled "Agreement By
and Between the County of Riverside and the La Quinta Redevelopment Agency Pertaining to the
Redevelopment Plan for Redevelopment Project No. 2" dated July 5, 1989 ("Cooperation
Agreement"); and
WHEREAS, it is the desire of all Parties to provide specific direction to the Parties in relation to
interpretation and implementation of the payment and subordination obligations set forth in the
Cooperation 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 above recitals are hereby found to be true and correct and incorporated as specific
findings by each party.
SECTION 2. All Capitalized Terms unless defined in this Memorandum shall have the same
meaning as set out in the Cooperation Agreement.
SECTION 3. The Parties agree that the foregoing may be implemented by agreeing to a specific
monetary schedule for the repayment of the Retained Portion originally retained by
the Agency pursuant to the Cooperation Agreement until the Project Area Tax
Increment reaches the annual level of Five Million Dollars. The repayment schedule
shall be as follows:
APR 2 8 1998 -'?3 i
YEAR
Repayment Amount
1997-98
$800,000
1998-99
0
1999-00
0
2000-01
0
2001-02
100,000
2002-03
100,000
2003-04
100,000
2004-05
100,000
2005-06
100,000
2006-07
100,000
2007-08
150,000
2008-09
200,000
2009-10
200,000
2010-11
200,000
2011-12
250,000
2012-13
250,000
2013-14
250,000
2014-15
250,000
TOTAL
$3,150,000
SECTION 4. The Pass -Through Portion of the County Portion shall be increased according to the
following schedule: 75% of the County Portion in 1998-99; 90% of the County
Portion in 1999-2000, and 100% of the County Portion in 2000-01 and thereafter,
with the final payment for the remaining balance due in 2014-15.
0
SECTION 5. The Retained Portion, and the Repayment Amount, as modified herein, are and will
continue to be subordinate to all existing and future bonded indebtedness regardless
of the level of Project Area Tax Increment paid to the Agency. The Pass -Through
Portion, as modified herein, is expressly pledged to the County and is a payment
obligation of the Agency not subordinate to any bonded indebtedness.
SECTION 6. This Memorandum of Understanding is conditioned on the restructuring of the
outstanding 1992 bonds for this Project Area and therefore it shall only be effective
upon the successful close of the 1998 Project Area No. 2 Tax Allocation Bonds for
the Redevelopment Agency contemplated in Resolution No. RA-98.
SECTION 7. Upon approval by all Parties hereto, this Memorandum of Understanding shall be
deemed an amendment to the Agreement dated July 5, 1989, for Project Area No.2.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year first
above written.
Dated: April 28, 1998
COUNTY OF RIVERSIDE
Approved as to Form:
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LA QUINTA REDEVE
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Approved as to Form:
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Chairman, Redevelopment Agency
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SUBMITTAL TO THE BOARD OF SUPERVISORS----__.��o �,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA q '•
FROM: County Executive Office SUBMITTAL DATE: April 22, 1998
r4r�
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH
LA QUINTA REDEVELOPMENT AGENCY
RECOMMENDED MOTION: That the Board approve the attached Memorandum of
Understanding with the La Quinta Redevelopment Agency.
BACKGROUND: The 1989 agreement between the County and La Quinta Redevelopment
Agency for the Agency's Project Area No. 2 provided for a 50/50 sharing of the
County's share of increment until the total reached $5 million; thereafter, beginning with
the following fiscal year the Agency would repay the County the 50% ($2.5 million) it
had previously retained in equal installments. The Agency estimates that the $5 million
threshold will be reached in FY '99.
The Agency is undertaking a refunding of its bonds, and is requesting that the repayment
of the $2.5 million be restructured to assist in managing the Agency's cash flow and
debt service requirements. The repayment structure proposed in the MOU is based on
a net present value calculation, and provides (1) an initial payment of $800,000 to the
County, due prior to the end of the current fiscal year; (2) deferment of further payments
for three years; and (3) tiered payments totaling $2.35 million, beginning in FY'02 and
continuing through FY ' 15.
FINANCIAL DATA:
CURRENT YEAR COST $ 0
NET COUNTY COST $ 0
ANNUAL COST $ 0
IN CURRENT YEAR BUDGET: YES/ NO/X
BUDGET ADJUSTMENT: YES/ NO/X FOR FY: 98
SOURCE OF FUNDS: La Quinta Redevelopment Agency
RM ARRAGVER
C.E.O. RECOMMENDATION: Approve. COUNTY COUNSEL
APR 2 31998
Executive Officer
MINUTES OF THE BOARD OF SUPERVISORS
On motion of Supervisor Wilson, seconded by Supervisor Tavaglione and duly carried by
unanimous vote, IT WAS ORDERED that the above matter is approved as recommended.
Ayes: Buster, Tavaglione, Venable, Wilson and Mullen
Noes: None
Absent: None
Date: April 28, 1998
xc: E.O., Co.Co., Auditor
Gerald A. IV
Clesl,of the
FORM 11 (Rev. 8/96)
La Quinta RDA / MOU
4-22-98 / page 2
The attached MOU has been reviewed by County Counsel and approved by the La Quinta
Redevelopment Agency.
Roby agl�r
Deptity County Exec /ive Officer
FORM 11 (Rev. 8/96)