Loading...
HomeMy WebLinkAbout07- Economic Developmetn Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Subject: APPROVAL OF MT.VERNON Agency Administrator CORRIDOR TAXING AGREEMENT WITH THE COUNTY SUPERINTENDENT OF SCHOOLS Date: September 16, 1993 --------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action (s): On June 25, 1990, the Mayor and Common Council adopted Ordinance MC733 which approved and adopted the Mt. Vernon Corridor Redevelopment Project Area. On October 10, 1990, the Community Development Commission approved an agreement with the County Superintendent of Schools relative to the Mt. Vernon Corridor Redevelopment Project. -------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: Move to adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A CERTAIN FISCAL IMPACT AGREEMENT WITH THE COUNTY SUPERINTENDENT OF SCHOOLS IN CONNECTION WITH THE ADOPTION OF THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FIND S AND DETERMINATIONS IN ACCORDANCE WITH HEALTH AND S ETY ODE SECTION 33401. TIMOTHY C. STEINHAUS Agency Administrator -------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): _Susan M. Morales Phone: 5081 Project Area(s): Mt. Vernon Corridor Ward(s): 1 3 & 6 Supporting Data Attached: -Staff Report; Resolution, Agreement FUNDING REQUIREMENTS: Amount: $0,000,000 Source: N/A Budget Authority: N/A -------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: --------------------------------------------------------------------------------------------------- TCS:SMM:pc:mtvrept COMMISSION MEETING AGENDA Meeting Date: 09/20/93 Agenda Item No.� ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT ---------------------------------------------------------------------------------------------------------------------- Approval of Mt. Vernon Corridor Taxing Agreement with Coun1y Superintendent of Schools On June 25, 1990, the Mt. Vernon Corridor Redevelopment Project Area was adopted. During the period preceding and following the project adoption, negotiations relative to the distribution of tax increment were held with the various taxing agencies. Subsequently, the Commission previously approved an agreement with the County Superintendent of Schools in October, 1990, with the understanding that the agreement would be brought back with a resolution for final adoption. During the review and preparation of final resolutions, Agency staff and special counsel determined that the previously approved agreement was inconsistent and unclear. Therefore, the attached agreement was prepared and approved by the County Superintendent of Schools in an effort to clarify the financial provisions of the agreement. The proposed agreement provides that in any fiscal year the Superintendent shall receive an amount equal to the Superintendent Inflationary Revenues (2%)plus 32%of the Superintendent's share of the 1% tax levy (which is calculated by multiplying the Superintendent tax levy of .6059% by 32%). An illustration of the calculation is demonstrated on the attached Exhibit "A". In addition, staff has determined that the remaining school district taxing agreements are also unclear. Therefore, we have conducted negotiations with each district and anticipate that the remaining agreements (San Bernardino Unified, Rialto Unified and Colton Unified) will be brought to the Mayor and Common Council for final approval in the near future. Staff rec men4s adoption of the form motion. i, TI HY TE HAUS, Agency Administrator Economic Development Agency --------------------------------------------------------------------------------------------------- TCS:SMM:pc:mtvrept COMMISSION MEETING AGENDA Meeting Date: 09/20/93 Agenda Item No. '�) • Aft Q 0 .o . o L C m 7 ° U m m m m m X m m C O m � m WI « Q Q W Iq 10 G .0 Z Z b W � F •-- N W m W m 0 v C V O m O W W, C r O W na°W Z Z n N °1 0 0 In W m N .- m X m m O W Q Q_ pOp N W 6 co m Z 2 p W 0 W = I� 111 O` N Q n, 110�aNI M N m � o W = c Q I m .- F- 2e ° m � U a 1°I x Q Q O O O F°.F-�I 2 2 8 O O In o Ln O O 0 n W W O m o m N C m.. m m m Q Q co w 10 m ufI " O C Z Z n W 7 m d C'« m a 6 W O .. o m N t0 7 2 acCC E N W N °- C o i m W � W b � L C vl !- e m QI 2 Z N v ° ` O C N O m W m a t c cm c m c c - 8 8 8 8 W 05 O m N m N �I m I 6 8 1 o M a. N-Q O -T m ` C O O O N 0 S O O O O m g 'c c `m m m a 0 0 0 N, oil 8 8 8 t m 0 m O O O m v G6G r m � E v � m m m O Q r Q p O N M ? m} O1 O r N th W W W W W W W W W W + 1 1 2 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA 3 AGENDA 4 5 September 20, 1993 6 Item: RESOLUTION OF THE COMMUNITY DEVELOPMENT 7 COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A 8 CERTAIN FISCAL IMPACT AGREEMENT WITH THE COUNTY SUPERINTENDENT OF SCHOOLS IN CONNECTION WITH THE 9 ADOPTION OF THE MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS AND 10 DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33401. 11 12 Exhibit "A" Agreement 13 Action to be Taken: Adopt Resolution. 14 15 Certified copy of Resolution to be returned to Sabo & Green, a 16 Professional Corporation. 17 SBPA/OOOlnU 18 09115/93 4:30 19 20 21 22 23 24 25 26 27 28 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, 3 CALIFORNIA, AUTHORIZING THE EXECUTION OF A CERTAIN FISCAL IMPACT AGREEMENT WITH THE 4 COUNTY SUPERINTENDENT OF SCHOOLS IN CONNECTION WITH THE ADOPTION OF THE 5 MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS AND 6 DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 33401. 7 8 WHEREAS, the City of San Bernardino, California (the 9 "City") , is a municipal corporation and a charter city duly 10 created and existing pursuant to the Constitution and the laws of 11 the State of California; and 12 13 WHEREAS, the Community Development Commission of the 14 City of San Bernardino (the "Commission") on behalf of the 15 Redevelopment Agency of the City of San Bernardino (the 16 "Agency") , is a redevelopment agency, a public body, corporate 17 and politic of the State of California, organized and existing 18 pursuant to the Community Redevelopment Law (Part 1 of Division 19 24) commencing with Section 33000 of the Health and Safety Code 20 of the State of California (the "Act") ; and 21 22 WHEREAS, the Commission has previously approved the 23 Redevelopment Plan (the "Redevelopment Plan") for the Mt. Vernon 24 Corridor Redevelopment Project Area (the "Project Area") ; and 25 26 WHEREAS, in connection with its adoption of the 27 Redevelopment Plan, the Commission has previously entered into 28 negotiations with various affected taxing agencies for the - 1 - f ) 1 purposes of mitigating or reducing any possible fiscal impacts 2 which may be experienced by such affected taxing agencies through the adoption and implementation of the Redevelopment Plan; and 4 5 WHEREAS, in accordance with Health and Safety Code 6 Section 33401, the Agency may pay to any taxing agency with 7 territory located within the Project Area any amounts of money which the Agency has found are necessary and appropriate to 9 alleviate any financial burden or detriment to any such taxing 1© agency which is caused by the implementation of the Redevelopment 11 Plan; and 12 13 WHEREAS, the County Superintendent of Schools (the 14 "Superintendent") which is an affected taxing agency, has 15 presented the Agency with satisfactory evidence that as a result 1fi of the redevelopment of the Project Area, the Superintendent 17 shall experience a financial burden or detriment, and that the 18 agreement as described herein is necessary to relieve said n financial burden or detriment; and 20 21 WHEREAS, the Agency and the Superintendent deem it 22 desirable to enter into that certain Agreement by and between the 23 Agency and the Superintendent, a copy of which is attached hereto 2_1 as Exhibit "A" and incorporated herein by this reference, which 25 provides for the pass through of certain tax increment amounts by 26 the Agency to the Superintendent as more fully described in said ,- 27 Agreement; and 28 llf 2 - 1 WHEREAS, new development within the Project Area will 2 necessitate the development of new facilities and the provision 3 of services by the Superintendent in order to provide existing 4 levels of service and the existing facilities and services 5 funding is insufficient to provide for the acquisition, 6 construction and installation of such facilities and the 7 provision of such services; and 8 9 WHEREAS, as a result of the redevelopment of the 10 Project Area the population within the boundaries of the Project 11 Area is expected to increase; and 12 13 WHEREAS, the Superintendent must provide new facilities 14 and services to respond to population growth within its 15 boundaries which facilities and services are often funded by 16 State or local funds and which funds are limited and not always 17 available to the Superintendent when needed; and 18 19 WHEREAS, the Superintendent has requested the Agency to 20 relieve the financial burden and detriment caused by the 21 implementation of the Redevelopment Plan pursuant to the terms of 22 the Agreement attached hereto; and 23 24 WHEREAS, the Superintendent has presented evidence to 25 the Agency that as a result of the implementation of the 26 Redevelopment Plan it will suffer a financial burden or 27 detriment; and 28 3 - 1 WHEREAS, the Superintendent is desirous of cooperating 2 with the Agency so that the Redevelopment Plan may be 3 implemented, and, accordingly, the parties have provided for the 4 allocation of tax increment revenues as set forth in the 5 Agreement. 6 7 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION 8 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF 9 SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 10 FOLLOWS: 11 • 12 Section 1. The above Recitals and each of them are 13 true and correct and the action taken pursuant to this Resolution 14 is based upon the facts stated in said Recitals. 15 16 Section 2 . With respect to the Superintendent, the 17 Agency hereby finds that: 18 19 (1) That the Superintendent has presented substantial evidence to the Agency which has been considered by the Agency; 21 22 (2) That as a result of the implementation of the 23 Redevelopment Plan the Superintendent shall experience a 24 financial burden or detriment due to the need to provide more 25 extensive facilities and services and upgraded improvements; and 26 27 (3) That the Agreement referenced in the Recitals 28 herein provides for a method of the allocation of certain tax 4 - 1 increment revenues between the Agency and the Superintendent 2 which is necessary to alleviate said financial burden and 3 detriment suffered by the Superintendent. 4 5 Section 3 . The Agency hereby finds and determines 6 that the above referenced Agreement has been prepared in 7 accordance with the provisions of Health and Safety Code 8 Section 33401, and the Agency hereby approves said Agreement 9 attached hereto as Exhibit "A" . The Chairman and the Agency 10 Secretary are hereby expressly authorized and directed, to 11 execute said Agreement upon adoption of this Resolution, subject 12 to such changes, additions or deletions as may be recommended by 13 the Agency Counsel and approved by the Agency Administrator for 14 the intended transaction contemplated therein. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 - dMIMM bt-e 1 '93 11:14RM P.P 1 RESOLUTION OF THE COMM=TY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A 2 CERTAIN FISCAL IMPACT AGREEMENT WITH THE COUM SUPERINTENDENT OF SCHOOLS IN CONNECTION WITH THE ADOPTION OF THE MT. VERNON 8 CORRIDOR REDEVELOPMENT PROJECT AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN ACCORDANCE WITH HEALTH AND SAFETY CODE 4 SECTION 33401. S &ectiom 4. This Resolution shall take effect upon 6 the date of its adoption. 7 8 I nmn CERTIFY that the foregoing Resolution was duly 9 adopted by the Community Development Commission of the City of 10 San Bernardino at a meeting 11 thereof, held on the _ day of , 12 1993, by the following vote, to wits 13 C_emmigsion ember_e: AYE$ NAYS ABSENT 1# NEGRETE ib CURLIN HERNANDEZ 18 OBERxBLMAN DEVLIN 17 POPE-LUDLAM MILLER �- I8 19 Secre 20 The foregoing resolution is hereby approved this day of 1993. 21 22 Tom Rlnor,, Chairman community Development Commission of the City of San Bernardino 24 Approved as to ZBy:-- lega ant.. 25 28 ency ounsel=712 27 28 6 /7 1 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss 2 CITY OF SAN BERNARDINO ) 3 I, Secretary of the Community Development Commission of the City of San Bernardino, DO HEREBY 4 CERTIFY that the foregoing and attached copy of Community Development Commission of the City of San Bernardino Resolution 5 No. is a full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto set my hand and 7 affixed the official seal of the Community Development Commission of the City of San Bernardino this day of 8 , 1993. 9 10 Secretary of the Community Development Commission 11 of the City of San Bernardino 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 � J AGREEMENT BY AND BETWEEN THE COUNTY SUPERINTENDENT OF SCHOOLS AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO (MT. VERNON CORRIDOR REDEVELOPMENT PROJECT AREA) This Agreement is made and entered into this day of 11 1993 , by and between the County Superintendent of Schools (the "Superintendent") and the Community Development Commission of the City of San Bernardino acting on behalf of the Redevelopment Agency of the City of San Bernardino (hereinafter referred to as the "Agency") . R E C I T A L S WHEREAS, the Agency is a redevelopment agency existing pursuant to the provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seg. ) which has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the Mayor and Common Council of the City of San Bernardino; and WHEREAS, on November 7, 1989, the Planning Commission of the City of San Bernardino approved Resolution No. PC89-2, establishing boundaries for the proposed Mt. Vernon Corridor Redevelopment Project Area (the "Project Area") ; and -1- SBE0k(Wi\noC\s7O r� WHEREAS, the Agency and the City have previously notified the Superintendent of their intention to prepare a redevelopment plan and to initiate and continue with proceedings to establish a redevelopment project (the "Project") for the Project Area; and WHEREAS, meetings have been held by representatives of the Superintendent and representatives of the Agency to discuss the potential fiscal impact of the Project on the Superintendent; and WHEREAS, the Superintendent has adopted a resolution dated April 24, 1990 (the "Resolution") , pursuant to Health and Safety Code Section 33676 (a) (1) and (2) and has duly transmitted said Resolution to the Agency to elect the allocation to the Superintendent of proceeds of taxes attributable to (i) increases in the tax rate levied by or for the benefit of the Superintendent and (ii) increases in the assessed value of property within the Project Area by application of the inflationary factor as set forth in California Constitution Article XIIIA; and WHEREAS, the parties have previously entered into an agreement dated October 101 1990, substantially similar to this Agreement, and desire that this Agreement supersede in total said prior agreement; and WHEREAS, it is the intent of the parties that the Agency comply with the legal requirements of Health and Safety Code -2- SBEO VIMI\DOC1570 Section 33401 and that this Agreement be adopted by a resolution of the Agency which contains findings, supported by substantial evidence, that the adoption of the Project will cause or has caused a financial burden or detriment to the Superintendent; and WHEREAS, for the above reasons, to alleviate any financial burden or detriment which the Project may cause the Superintendent, and to amicably resolve any differences regarding the Project, 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: 0 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 Community Development Commission of the City of San Bernardino acting on behalf of the Redevelopment Agency of the City of San Bernardino. -3- SBEU%XJO1\DOC\570 (b) "City" shall mean the City of San Bernardino, a municipal corporation and a charter city duly established pursuant to the Constitution and laws of the State of California. (c) "Community Redevelopment Law" shall mean Part 1 of Division 24 of the Health and Safety Code (commencing with Section 33000) . (d) "Fiscal Year" or "Year" shall mean the period from July 1 to and including the following June 30. (e) "Project Area Increment" shall mean all property taxes allocated and paid to the Agency with respect to the Project Area pursuant to California Health and Safety Code Section 33670 (b) representing taxes paid upon increases in the assessed value of properties within the Project Area above the base year assessed value for the 1989-90 Fiscal Year. (f) "Redevelopment Plan" shall mean the Redevelopment Plan for the Mt. Vernon Corridor Redevelopment Project as approved by Ordinance No. MC 733 of the City. (g) "Superintendent" shall mean the County Superintendent of Schools. -4- saE0a000iUnoc\s70 (h) "Superintendent Inflationary Revenues" for any Fiscal Year shall mean those moneys which would have been payable to the Superintendent in respect to the Project Area pursuant to Revenue and Taxation Code Section 110. 1 (f) and 51 (a) , which the Superintendent would have received in such Fiscal Year from the Project Area pursuant to Health and Safety Code Section 33676 (a) (2) upon adoption by the Superintendent of the Resolution referred to in the recitals to this Agreement to elect to receive such revenues. Superintendent Inflationary Revenues shall be calculated in a manner consistent with the illustration contained on Exhibit "A" as attached hereto and incorporated herein by reference and as further provided in Section 2 hereof, and in the event of any inconsistency between the interpretation of Superintendent Inflationary Revenues as set forth in this Section 1(h) and said Exhibit "A", an interpretation pursuant to said Exhibit "A" shall control. (i) "Superintendent Portion" shall mean the dollar value of a portion of the Project Area Increment to be remitted by the Agency to the Superintendent by multiplying a factor of thirty-two percent (32%) (such 32% factor was calculated based upon the intent that the Superintendent would receive 40% of 80% of the Superintendent's share of the general property taxes generated upon the increased assessed values) by the percentage figure representing the general purpose tax levy of the Superintendent ("Superintendent Tax Levy"; for purposes hereof, "Superintendent -5- SBEO+%00011DOC1570 Tax Levy" shall be that percentage portion of the one percent (1%) general property tax levy which is attributable to the Superintendent within each tax rate area code within the Project Area) and then multiplying that product by the amount of Project Area Increment within the Project Area based upon increases in the assessed value of taxable property within the Project Area in excess of that inflationary increase amount calculated to produce the Superintendent Inflationary Revenues. For purposes of this Agreement, the percentage used by the Agency in calculating the Superintendent Tax Levy shall be the same percentage upon which proceeds of taxes are allocated and paid to the Superintendent (or its successor) pursuant to Health and Safety Code Section 33670 (a) frcm each tax rate area code within the Project Area. It is presently estimated that for the 1991-92 Fiscal Year the Superintendent Tax Levy would be equal to . 6059% when calculated on a wreighted average basis from all tax rate area codes within the Project Area; and, therefore, the Superintendent Portion for the 1991-92 Fiscal Year would be calculated by multiplying the Superintendent Tax Levy of .6059% by 32% to produce a product of . 193888% which would then be applied to the Project Area Increment to calculate the Superintendent Portion. All amounts generated by the application of the Superintendent Tax Levy as to the Project Area Increment except for (i) the Superintendent Inflationary Revenues and (ii) the Superintendent Portion shall at all times be retained by the Agency and used and applied by the Agency in any mar,.ner as permitted by the Community Redevelopment Law. An -6- SBEO1WW1\)0('\570 /001$ illustrative example of the application of this definition is attached as Exhibit "A" hereto, and in the event of any inconsistency between the interpretation of Superintendent Portion as set forth in this Section 1(i) and said Exhibit "A" , an interpretation pursuant to said Exhibit "A" shall control. (j) "Term" shall mean the period of time the Redevelopment Plan remains in effect. Section 2. For each Fiscal Year during the Term, subject to the provisions of Section 3 of this Agreement, the Agency shall pay to the Superintendent in two (2) installments within a reasonable period of time after the Agency receives the Project Area Increment from the County Auditor-Controller an aggregate amount equal to (i) the Superintendent Inflationary Revenues and (ii) the Superintendent Portion; provided that payments of Project Area Increment received by the Agency between July 1 and December 31 of any Fiscal Year shall be remitted by the Agency to the Superintendent as the Superintendent Inflationary Revenues and the Superintendent Portion on or before the following February 28 and payments of Project Area Increment received by the Agency between January 1 and June 30 of any Fiscal Year shall be remitted by the Agency to the Superintendent as the Superintendent Inflationary Revenues and the Superintendent Portion on or before the following -7- SBED000 \DOC\570 August 30. The parties recognize and agree that the Agency shall calculate the Superintendent Inflationary Revenues based upon an increase in Project Area assessed values of not in excess of two percent (2%) per year, or such lesser percentage amount as may be used by the County of San Bernardino pursuant to Revenue and Taxation Code Section 110. 1(f) and 51(a) , by applying such percentage for each subsequent Fiscal Year from the base year value, as such base year value may be in effect from time to time. The Superintendent Inflationary Revenues shall in all Fiscal Years be calculated upon the Project Area Increment to be produced based upon increases from the base year assessed values to the then current Fiscal Year when taking into account the increases in the inflationary assessed value attributable to each Fiscal Year. The Superintendent Portion shall be calculated on the difference between the actual assessed value for a Fiscal Year and the assumed inflationary assessed value all as further illustrated on Exhibit "A", and in the event of any inconsistency between the interpretations of Sections 1, 2 or 3 of this Agreement and said Exhibit "A", an interpretation pursuant to said Exhibit "A" shall control. That share produced by application of the Superintendent Tax Levy and all other Project Area Increment which the Agency retains pursuant to this Agreement shall be used for redevelopment purposes as shall hereafter from time to time be determined by the -8- SBECMDOWD00570 OWN Agency at its sole discretion in any manner as permitted by the Community Redevelopment Law. Payments to the Superintendent pursuant to this Section 2 are subject to the conditions and limitations set forth in Sections 3 and 4 of this Agreement. Section 3 . Payment to the Superintendent is subject to the following conditions and limitations: A. The Agency's obligation to remit the Superintendent Inflationary Revenues and the Superintendent Portion to the Superintendent under this Agreement is deemed to constitute "an indebtedness" within the meaning of Health and Safety Code Section 33670 and 33675. B. As further provided in Section 2, the Agency shall pay to the Superintendent amounts due pursuant to this Agreement in an aggregate amount equal to (i) the Superintendent Inflationary Revenues and (ii) the Superintendent Portion during each Fiscal Year within a reasonable period of time after the Agency receives Project Area Increment from the County -9- SBEOUCW1\DOC\570 Auditor-Controller; provided that payments of Project Area Increment received by the Agency between July 1 and December 31 of any Fiscal Year shall be remitted by the Agency to the Superintendent as the Superintendent Inflationary Revenues and the Superintendent Portion on or before the following February 28 and payments of Project Area Increment received by the Agency between January 1 and June 30 of any Fiscal Year shall be remitted by the Agency to the Superintendent as the Superintendent Inflationary Revenues and the Superintendent Portion on or before the following August 30. C. The Agency's obligation to make payments hereunder shall be limited to Project Area Increment generated solely from the Project Area and which are actually received by the Agency. The City shall have no financial obligation by virtue of the Agency having entered into this Agreement, and shall not be responsible for the discharge of any obligations of the Agency contained herein nor shall the City in any manner be contractually or morally obligated to make any payments hereunder either for or on behalf of the Agency or for or on behalf of the City itself. -10- SBEOW)OWD00570 D. Notwithstanding any other provisions of this Agreement to the contrary, the Agency's obligation to make payments to the Superintendent under this Agreement in any single year shall not: (i) exceed the amount of property tax revenues which would have been received by the Superintendent as the proceeds of taxes 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 Safety Code Section 33670; (ii) violate the expenditure limitation of the Superintendent 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. Section 4. Unless otherwise directed by the Superintendent pursuant to Section 7 hereof, funds payable by the Agency to the Superintendent pursuant to this Agreement as the Superintendent Inflationary Revenues and the Superintendent Portion shall be paid by the Agency to a trust fund maintained by the Superintendent, and shall be used and applied by the Superintendent for any purposes authorized under California law. -11- SBEO'0K1O11DOC\570 Adft 0 Section 5. A. The Superintendent represents that it has adopted the Resolution as referred to in the recitals hereof electing to receive revenues pursuant to Health and Safety Code Section 33676 (a) (1) and (2) in connection with the Project. By the execution of this Agreement the Superintendent hereby waives any rights or claims to receive proceeds of taxes directly from the County Auditor-Controller by reason of the prior election made by the Superintendent under Health and Safety Code Section 33676 (a) (2) as previously set forth in the Resolution. In the event a tax rate is levied by or for the benefit of the Superintendent in excess of the present one percent (1%) general tax levy, or in excess of such other tax rate as may hereafter become the general tax levy for which all applicable taxing agencies share a portion thereof, then the election pursuant to Health and Safety Code Section 33676(a) (1) as set forth in the Resolution shall be applicable and the appropriate amounts shall be remitted by the County Auditor- Controller to the Superintendent as proceeds of taxes and not as Project Area Increment. Any change or modification of the Superintendent Tax -12- SBECh9D0IIDOC\5570 Levy shall not be deemed to be within the scope of the election under Health and Safety Code Section 33676 (a) (1) as previously set forth in the Resolution. B. In the event that the Superintendent receives payment of funds referred to in this Agreement directly from the County Auditor-Controller which otherwise would have been payable by the Agency to the Superintendent, the Agency shall be entitled to offset payments due and payable to the Superintendent in the form of both Superintendent Inflationary Revenues and the Superintendent Portion by any amount of funds the Superintendent has so received directly from the County Auditor- Controller. Payment to the Superintendent of any funds by reason of the prior election under Health and Safety Code Section 33676 (a) (1) to the extent such election shall hereafter become operative shall not be subject to such offset. Section 6. The Superintendent hereby acknowledges and agrees that it has received all notices, written or published, required by the Community Redevelopment Law to have been received by the -13- SBEOMMD00570 l� 0 Superintendent during the process leading to the adoption of the Redevelopment Plan and hereby waives any and all legal rights it may have presently to contest the adoption or the content of the Redevelopment Plan as a result of a failure to have received any statutorily required notice. The Superintendent agrees and covenants that it shall not file or participate in opposition to the Agency in any lawsuit challenging 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 the Agency or the Mayor and Common Council of the City in connection with the adoption and approval of the Redevelopment Plan. Section 7 . The Superintendent at its sole discretion may at any time or from time-to-time assign to the Agency or to any other third party all or any portion of its rights to receive Project Area Increment whether attributable to Superintendent Inflationary Revenues or the Superintendent Portion pursuant to this Agreement. The Agency agrees to assist the Superintendent in the financing of any legally permissible capital improvement projects of the Superintendent upon the Agency acceptance of such assignment from the Superintendent; provided, however, that no such action undertaken by the Agency at the request of or for the benefit of the Superintendent shall cause the Agency to incur any liability, -14- SBEGAk000i\nOC\s7o 0 cost or expense whatsoever and all financing costs shall be paid either by the Superintendent or from the proceeds derived from the financing of the Agency attributable to the Agency's acceptance of such assignment. The Agency further agrees to remit such Project Area Increment whether attributable to Superintendent Inflationary Revenues or the Superintendent Portion pursuant to this Agreement to any third party lender, contractor, trustee, fiscal agent or vendor at the direction of the Superintendent; provided, however, that any additional costs incurred by the Agency in complying with such request of the Superintendent shall be paid by the Superintendent or reimbursed by the Superintendent to the Agency. Section 8. This Agreement, together with the attached Exhibit "A", supersedes any agreements or discussions between the Agency and the Superintendent regarding the matters set forth herein and constitutes the entire agreement between the Agency and the Superintendent with respect to the matters set forth herein, and any changes, modifications or amendments hereto shall be legally binding and effective only upon execution of a written amendment hereto. This Agreement specifically supersedes that certain previously executed agreement by and between the parties dated -15- SBEOOWI\noc\s7o October 10, 1990, which dealt with substantially the same matters as set forth herein. Section 9. This Agreement shall become effective and shall be dated the date last executed below and shall continue in effect for the Term as defined in Section 1(j) hereof. -16- SBE0It:WI1D0 1570 IN WITNESS WHEREOF, the parties hereto have executed this C Agreement on the day and year as set forth below, and this Agreement shall be effective as of the date as provided herein. COUNTY SUPERINTENDENT OF SCHOOLS Dated: - 2° , 1993 By: COMMUNITY DEVELO MENT COMMISSION OF THE CITY OF SAN BERNARDINO Dated: , 1993 By: Chairman (SF—AL) ATTEST: Secretary Approved as to Form: /—Agncou 1 SBE01,"1\D0C\570 04\21'�2 5:30 -17- SBE010W1\D0C\570 P 0 3 B t x e c 0 CrA yF z z m n m e ° c m O a H o ^ N m CO m • `o • c t 0 gC 001 0 c LM < < a ° ° n z Z co IL n • P vi of c U) m ° m va r e a X • T C o a o m < < S N m n m z z fb n Y�i Go X o m Q N ~ < M n m o p F J ° X Y m 1 r �' V W � O • z z 25 a 25 I u 8 V) O O $ a n m m r e N Y N M c � a e V • o < <_ m m 4° �• O U)1 ° o z z o of n th • `o c e m o N e o < < m N Y c 73 ai H c° z z N a c ° m 0 a n e n. c e 0 0 • c 8 8 8 g m e i NN 'a QQ QQ p Vf N • c O N -T to w 8 O O O O e o c c a CL z v o e N L N g v 0 m m 0 0 0 . v 7 •- 0 3d • E U O rl e o e S� P- P- m O N M m m m m m m m m m m