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1987/07/14 City Council ResolutionRESOLUTION NO. 87-13 RON00002-38/0092R/kf 07/09/87 RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK APPROVING A CERTAIN FISCAL IMPACT AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK AND THE COTATI ROHNERT PARK UNIFIED SCHOOL DISTRICT PURSUANT TO EALTH AND SAFETY CODE SECTION 33401 (ROHNERT PARK COMMUNITY DEVELOPMENT PROJECT) WHEREAS, the Community Development Agency of the City of Rohnert Park (the "Agency") and the City of Rohnert Park, California (the "City"), intend to approve and adopt the redevelopment plan for the. Rohnert Park Community Development Project pursuant to a duly adopted City ordinance (the "Redevelopment Plan"); and WHEREAS, the Agency and the Cotati/Rohnert Park Unified School District (the "District") deem it advisable that an agreement as attached hereto as Exhibit "A" and incorporated herein by this reference (the "Agreement") be entered into in accordance with the provisions of Health and Safety Code Section 33401 by and between the Agency and District with respect to the use of tax increment revenues to be generated within the Redevelopment Project Area of the Agency known as the Rohnert Park Community Development Project (the "Project Area"); and WHEREAS, in accordance with Health and Safety Code Section 33401, the Agency may pay to any taxing agency with territory located within the Project Area any amounts of money which the Agency has found necessary and appropriate to alleviate any financial burden or detriment to any such taxing agency which is caused by the Redevelopment Plan; and WHEREAS, the District has requested the Agency to enter into the Agreement in order to determine on an annual basis whether or not the District will suffer any financial burdens or detriment due to the adoption of the Redevelopment Plan and to take appropriate further actions upon a finding of financial burden or detriment at such time as such financial burden or detriment is found to exist. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK, AS FOLLOWS: Section 1. The above recitals and each of them are true and correct and the action taken pursuant to this Resolution is based upon the facts stated in said recitals. - 1 - Section 2. The Agency hereby- approves the Agreement attached hereto and incorporated by this reference whereby the District and the Agency agree to annually review possible financial burdens suffered by the District as a result of the implementation of the Redevelopment Plan. Section 3. At such time as a determination is made that the District has suffered or will suffer a financial burden or detriment because of the implementation of the Redevelopment Plan, the Agency and the District shall enter into an agreement to mitigate such financial burden or detriment and further, the Agency shall make the necessary findings and determinations regarding such financial burden or detriment pursuant to Health and Safety Code Section 33401. Section 4. This Resolution shall take effect upon adoption. ADOPTED AND APPROVED this 14th day of July _, 1987. Secretary of the Community Development Agency of the City of Rohnert Park, California Chairman of the Community Development Agency of the City of Rohnert Park, California - 2 - STATE OF CALIFORNIA ) COUNTY OF SONOMA ) ss. CITY -QF ROHNERT P I, Millie Williams, Deputy,— Secretary of the Community Development Agency of the City of Rohnert Park do hereby certify that the foregoing resolution was regularly introduced and adopted by the Community Development Agency of the City of Rohnert Park at a regular meeting thereof, held on the 14th day of July 1 1987, by the following vote of the Community Development Agency of the City of Rohnert Park: AYES: (4) Members Hollingsworth, Hopkins, Lepinski and Chairman Eck NOES: (0) Members None ABSENT: (1) Members Cochran ABSTAIN: (0) Members None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Community Development Agency of the City of Rohnert Park this 14th day of July , 1987. By:A�' �-' &&, .84'}3$77 _ Secretary of the Community zo '.ns:.k Development Agency of the City �p of Rohnert Park ( SEAL) /0092R 1 - COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK, CALIFORNIA AGENDA July 14, 1987 Item: RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK APPROVING A CERTAIN FISCAL IMPACT AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK AND THE COTATI/ROHNERT PARK UNIFIED SCHOOL DISTRICT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33401 (ROHNERT PARK COMMUNITY DEVELOPMENT PROJECT) Action to be Taken: Adopt Resolution To be Published: n/a Newspaper: n/a Dates: n/a Certified copy of Resolution to be returned to Sabo & Deitsch. /0092R AGREEMENT BY AND BETWEEN THE COTATI/ROBNERT PARR UNIFIED SCHOOL DISTRICT AND THE CITY OF ROBNERT PARK REDEVELOPMENT AGENCY THIS AGREEMENT is entered into this 7th day of July, 1987, by and between the COTATI/ROHNERT PARK UNIFIED SCHOOL DISTRICT (hereinafter referred to as the "District") and the CITY OF ROHNERT PARK REDEVELOPMENT AGENCY, a public body, corporate and politic, established and authorized to transact business and exercise its powers under and pursuant to the Community Development Law of the State of California (hereinafter referred to as the "Agency"). WHEREAS, the Agency and the City of Rohnert Park (the "City") intends to approve the Redevelopment Plan for the Rohnert Park Redevelopment Project (the "Redevelopment Plan") pursuant to an Ordinance to be adopted, the Redevelopment Project Area (the "Project Area") of which encompasses a portion of the boundaries of the District; and WHEREAS, the Redevelopment Plan, as adopted, does not anticipate that a substantial number of new single family or multifamily residential dwelling units will be constructed or developed with or without Agency assistance in the Project Area, nor does it anticipate that significant community educational service demands will be imposed upon the District by virtue of adoption of the Redevelopment Plan; and - 1 - r WHEREAS, the Agency and the District deem it desirable at this time to enter into this Agreement to provide for the hereinafter- specified items and other matters of consideration so as to alleviate potential adverse fiscal impacts that may result to the District by virtue of the adoption of said Redevelopment Plan for the Project Area but only in the event that residential dwelling units of significant numbers and impact are constructed' within the Project Area or new community educational service demands are imposed upon the District; and WHFBEAS, the District desires to forego its legal right to challenge or seek invalidation of said Redevelopment Plan or of any proceedings relative thereto in consideration of the hereinafter set forth conditions, covenants and agreements. NOW, THEREFORE, the parties hereto agree for themselves and for their successors in interest, as follows: The District shall not object to the proposed method of tax increment financing for the infrastructure items, other public improvements and the providing of redevelopment assistance necessary to facilitate the redevelopment of the Project Area and the acquisition and construction of the other public improvements, structures and facilities more fully described in the Redevelopment Plan as adopted by the Agency and the City and in consideration for entry into this Agreement with the parties hereto, the District will not bring or seek to bring any action and will not - 2 -- join in any action in a role adverse to the Agency and the City which seeks to invalidate the Redevelopment Plan or of any proceedings relative thereto as otherwise permitted under Health and Safety Code Section 33501. Section Z. Upon incurring indebtedness by the Agency thereby requiring the use by, the Agency of certain tax increment revenues generated by the property within the Project Area pursuant to Health and Safety Code Section 33670(b) to the extent required by the Redevelopment Plan, and as provided in this Agreement, and all documents relating and ancillary thereto, the District agrees to forego the right to receive that portion of the taxes generated by the property within the Project Area which the District would otherwise have received if the Redevelopment Plan had not been adopted, to the extent and in accordance with the provisions set forth in the hereinabove identified documents and this Agreement. It is the intent of the parties hereto that the Agency shall only be entitled to receive tax increment revenues during the period specified in the Redevelopment Plan to the extent the Agency has debt outstanding in accordance with Health and Safety Code Section 33675. The total authorized principal amount of said debt and the purposes for which said debt may be incurred is set forth in the Redevelopment Plan. Section 3. The District agrees that the allocation and distribution of tax increment revenues attributable to the Project Area shall be subject to the terms and conditions of this Agreement, - 3 - and such other agreements with certain other affected taxing agencies as may be authorized from time to, time by the City and the Agency in accordance with the Redevelopment Plan and said Ordinance. section 4. As set forth in the Redevelopment Plan and related documents, this Agreement, and Health and Safety Code Section 33401 provide that the Agency may pay to any taxing agency with territory located within the Project Area other than the City, any amounts of money which the Agency has found are necessary and appropriate to alleviate any financial burden or detriment caused to any taxing agency by the Redevelopment Plan. The payments to a taxing agency in any single year shall not exceed the amount of property tax revenues which would have been received by- that taxing agency 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, _except that a greater payment may be established by agreement between the Agency and one or more taxing agencies, except the City, if such other taxing agencies agree to defer payments for one or more years in order to accomplish the purposes of the Redevelopment Plan at an earlier time than would otherwise be the case. The amount of any such greater payment shall not exceed the amount of payment deferred. The payments shall be approved by a resolution, adopted by the Agency, which shall contain findings, supported by substantial evidence, that the Redevelopment Plan will cause or has caused a financial burden or detriment to the taxing agency and that the payments are necessary to alleviate the financial burden or detriment. - 4 - Sectia�. • nThe parties hereto recognize and agree that it is not presently contemplated that substantial residential development will occur within the Project Area which may thereby create a student generation impaction to the District. in each future fiscal year, as the District is able to demonstrate adverse fiscal impaction as the result of the allocation of tax increment revenues to the Agency, the Agency, through the Agency Staff, shall undertake appropriate action together with the District Staff, to mitigate the demonstrated fiscal impaction upon the District and to arrive at a mutually agreeable solution in the manner as hereinafter provided. The parties hereto agree that commencing with the 1988/89 fiscal year, the District Staff and the Agency Staff will cooperate to jointly prepare an annual analysis of the financial effect, if any, on the District caused by the existence of the Redevelopment Plan for the Project Area. The analysis of potential impact for each then current fiscal year shall be based upon any and all information and reports with respect to the immediately preceding f iscal year, including all pertinent studies, reports and projections, if any, with respect to subsequent fiscal years. If such analysis shall provide the factual basis for the findings and determinations of the Agency that the implementation of the Redevelopment Plan would cause adverse financial impact to the District, the District and the Agency will jointly develop a means to alleviate that detriment either through payment of amounts attributable to the tax increment revenues and/or the provision by - 5 - the Agency for assisting in the funding of educational programs for the benefit of the District but not to exceed that amount of taxes allocated to the Agency attributable to the amount of taxes that would otherwise have been allocated to the District from the Project Area. It is understood and agreed that the total amount of Agency funds applied in any such manner to alleviate the adverse fiscal impact to the District will be,equivalent to the financial detriment which has been demonstrated by the analysis to be conducted by the District Staff and the Agency Staff but not to exceed the amount previously provided herein. The parties hereto further agree that (i) in the event there is a change in the tax laws or bond issuance laws of the State of California to permit the issuance of future voter approved general obligation bonds payable from sid valorem taxes, the District would be entitled to receive the tax dollars necessary as an override or a special tax levy as may need to be levied by the County of Sonoma to enable the District to provide for the debt service requirements on such hereafter authorized general obligation bonded indebtedness or other &d valorem tax bonds, or (ii) in the event there is a change in the laws of the State of California or State policy with regard to the funding of operation and maintenance expenses of school districts which would adversely affect the District, the Agency would provide appropriate payments to the District pursuant to Health and Safety Code Section 33401 to the extent such payments would not adversely affect any outstanding tax allocation bonds, notes or other forms of indebtedness or - 6 - contractual obligations of the Agency, and such obligation to remit said payments to the District shall at all times be subordinate to any such tax allocation bonds, notes or other forms of indebtedness or contractual obligations. In the event the District determines that additional fiscal impacts affect the District as a result of the use of tax increment revenues by the Agency from the Project Area, which result in the need of the District to obtain additional funds which otherwise would have been available had the Redevelopment Plan not been adopted, the Agency will use the tax increment revenues to mitigate such adverse impacts upon the District pursuant to Health and Safety Code Section 33401. Sums payable pursuant to this Agreement shall be paid only if available and declared as surplus under a bond resolution or indenture providing for the issuance of tax allocation notes, bonds or other forms of indebtedness issued by, or contractual obligations incurred by the Agency under the provisions of the Health and Safety Code, or if otherwise available and not subject to prior encumbrance or restriction by said indebtedness or said other forms of indebtedness. Section 6. The District will diligently pursue available additional funding sources for the acquisition, construction or installation of property, educational buildings and facilities of all types and for the initiation and maintenance of educational programs that may be available from federal, State or local sources pursuant to existing or future law for the mitigation of fiscal impacts to the District. 7 - Section _7. Any and all liabilities or obligations of the Agency to utilize tax increment revenues attributable to the Project Area in furtherance of this Agreement are and shall at' all times be a debt of the Agency as prescribed by and pursuant to applicable provisions of the Community Redevelopment Law; provided, however, the obligation of the Agency to so utilize the tax increment revenues in furtherance of this Agreement is subordinate to any and all forms of bonds or other indebtedness issued by or contractual obligations of the Agency which create, or purport to create, a first lien or a prior lien on the tax revenues or otherwise pledge such tax revenues, as described in the Redevelopment Plan and the Redevelopment Plan documents and in this Agreement. If the District and the Agency determine the necessity thereof in the future, and as further provided in the Redevelopment Plan, the Agency• and the District may enter into subsequent agreements pursuant to Health and Safety Code Section 33401 to further alleviate future financial burdens or detriments to the District if such agreements should be necessary or appropriate, in addition to the provisions herein set forth or to further implement any of them. section I. This Agreement shall be binding upon the parties hereto and upon their successors and assigns. The obligations of the Agency hereunder may not be transferred, assigned or delegated without the written consent of the District. - 8 - Section 2. The Agency and the District shall take such further actions, hold such further hearings, execute such further documents, and seek such further authorizations or consents as may be necessary by the respective parties to implement fully the intent of this Agreement. section 10. Each of the provisions of this Agreement and the enforceability hereof is specifically subject to the application of the laws of the State of California pertaining thereto as the *ame exist or as may hereafter exist. section 111. In the event any section or portion of this Agreement shall be held, found or determined to be unenforceable or invalid for any reason whatsoever, the remaining provisions shall remain in effect and the parties hereto shall take such further actions as may be reasonably necessary and available to them to effectuate the intent of the parties as to all provisions set forth in this Agreement. IN WITNESS WHEREOF, the Agency and the District have caused this Agreement to be executed on their behalf by their duly authorized officers or representatives as of the date first above written and have approved and authorized the execution of this Agreement pursuant to appropriate official action of the respective governing boards. (SEAL) ATTEST: By Secretary, Board of Directors (SEAL) ATTEST: By � ?'! �, De� ut Secretary APPROVED AS TO FORM By Agency Attorney COTATI/ROHNERT PARK UNIFIED SCHOOL DISTRICT Fj61"Mam� 1 r CITY OF ROHNERT PARR REDEVELOPMENT AGENCY Chairman - 10 - 0 gjvv� M��LJ�l MEMORANDUM To: Honorable Mayor and Members of the Rohnert Park City Council and Honorable Chairman and Members of the Community Development Agency of the City of Rohnert Park From: City Staff Date: May, 1987 Re: (1) Use of the twenty percent (20%) tax increment revenues from the Project Area included within the Redevelopment Plan for the Rohnert Park Community Development Project for affordable housing outside the Project Area, and (2) a description of benefits to the Project Area. J�LENTY PERCENT (-2Q%) PROVISION FOR AFFORDABLE ffOUSING The purpose of this memorandum is `to outline matters relevant for consideration by the Community Development Agency of the City of Rohnert Park (the "Agency") in connection with the use' of certain tax increment revenues outside of the redevelopment project area (the "Project Area") subject to the Redevelopment Plan for the Rohnert Park Community Development Project (the "Redevelopment Plan") which state law requires to be earmarked for affordable housing development and rehabilitation. In view of the fact that there are few residential dwellings currently located within the Project Area which will be impacted by the adoption of the Redevelopment Plan, it is important to consider the use of such tax increment revenues at this time. Health and Safety Code Section 33334.2 provides that: "(a) Not less than 20 percent of all taxes which are allocated to the agency pursuant to Section 33670 shall be used by the agency for the purposes of increasing and improving the community's supply of low- and moderate- income housing available at affordable housing cost . . . Page 2 "(g) The agency may use these funds inside or outside the project area The agency may only use these funds outside the project area upan a resolution of the agengy and the 1gglslative body that such use will be of benefit to the [pro ect. Such determination by the agency and the legislative body shall be final and conclusive as to the issue of benefit to the project area. . . ." (emphasis added) Section 33334.2(8) further indicates that: of . .Unless the legislative body finds before the redevelopment pin is adopted, that the provision of low- and moderate -income housing outside the project area will be of benefit to the project, the project area shall include Rroverty suitable for low- and moderate -income hous_t." (emphasis added) INDINGS BEFORE ADOPTION OF IM 1REDEVELOPMENT PLAN FOR THE ROH RT PARK COM"ITy DEVELOPMENT PROJECT The City seeks to maintain as much flexibility as possible in connection with the implementation of the Redevelopment Plan, particularly with respect to the provisions for affordable housing. In order to foster the type of development within the Project Area which would be of most benefit to the long-term oals of the City, it is important to underscore the significance of making the above -referenced findings regarding affordable housing prior to the adoption of the Redevelopment Plan. Unless the City Council and the Agency make the findings specified in Section 33334.2(8) prior to the adoption of the Redevelopment Plan, the affordable housing requirement could only be satisfied by locating units constructed or rehabilitated with tax increment revenues solely within the Project Area as required by Section 33334.2. If an appropriate finding is made by the City Council and the Agency prior to the adoption of the Redevelopment Plan, such affordable housing may be located either within or outside the Project Area. Accordingly, it is necessary that such a finding be made prior to the adoption of the Redevelopment Plan in order to maintain the desired flexibility. One of the considerations foremost in the selection of the boundaries of the Project Area was the need to provide for a sound basis for future economic development in the community. A map showing the ✓ Project Area boundaries is attached_ to this memorandum. The Project Area inclizde_s­p-rimarily commercial and manufacturing land uses within the City, as well as some residential uses. Although there are a number of dwelling units located in the Project Area, these existing dwelling units are in scattered locations and in many cases are interspersed between parcels of land presFsitly being used for commercial or manufacturing purposes. The Project Area includes a proportionately small number of units of affordable housing located throughout various areas in the Project Area. Only a few of the Page 3 units in the Project Area need major rehabilitation whereas a number of units are in need of minor rehabilitation. No units were identified needing replacement. Neither the existing residential development regulations of the City nor the residential development goals and policies as outlined in the Rohnert Park General Plan encourage a substantial amount of further development of new residential uses within the Project Area. The greatest demand for affordable new housing as well as the rehabilitation of certain existing housing is focused upon neighborhoods within the City but located outside of the Project Area. Therefore, the use of a portion of the tax increment revenues of the Agency for affordable housing programs and rehabilitation appears to be desirable. DENEFIT TO THE_ PROJECT AREA The Rohnert Park General Plan provides for the development of the Project Area for commercial and manufacturing uses generally. Although many of the public improvements proposed in the Redevelopment Plan will directly benefit the existing residential neighborhoods within the Project Area in which persons of low- and moderate -income may reside, a substantial number of persons of low- and moderate -income who reside outside of the Project Area will also be affected. By retaining the flexibility to provide for affordable housing and rehabilitation outside the Project Area, the Project Area itself would be beneficially impacted. Some of the principal benefits are enumerated as follows: (1) Ter Tax Base. The location of affordable housing outside the Project Area would enable the type of commercial and manufacturing -related development within the Project Area which would create a higher tax base for the City and thus generate more tax increment revenues for the Agency to utilize for the necessary public infrastructure improvements. Affordable housing traditionally has a lower tax base than property developed at market value for commercial or manufacturing uses. In addition to being an overall benefit to the City as a whole, this higher tax base created by the Project Area development has the immediate benefit of enabling the City to commence the necessary construction, installation and improvement of the public improvements identified in the Redevelopment Plan. (2) Local Labor Force. The provision of affordable housing outside the Project Area will provide new housing opportunities for persons who will be employed at places of business which shall be developed within the Project Area at locations which are well planned and buffered from incompatible uses on nearby property. SPECIFIC FINDINGS The- City Council and the Agency are requested to make the following findings prior to the adoption of the Redevelopment Plan which findings are conclusive as to benefits to the Project Area by proviCU3)g affordable housing either inside or outside of the Project Area. ` . ' Page 4 (1) The Project Area contains few residential dwelling units that will be directly affected by implementation of the Redevelopment Plan. A significant number of the dwelling units located outside of the Project Area provide housing to persons who need additional affordable housing opportunities. In view of the limited rental assistance programs available, the City will attempt to utilize available redevelopment program funds to satisfy the needs of lower income households. (2) A substantial number of the existing dwelling units within the City are in need of rehabilitation. Many of such dwelling units are located outside of the Project Area. In view of this fact, it appears preferable for the City, through the Agency, to utilize the tax increment moneys and/or programs to provide assistance for the rehabilitation of such housing in need of rehabilitation either inside or outside of the Project Area where the residents who are in need of such housing presently live. (3) In view of the fact that a significant portion of the City presently consists of residential dwelling units of older housing stock, it is clear that the redevelopment of the Project Area will not directly address either the present or future rehabilitation requirements associated with such older housing. The contemplated development Activities in the Project Area will result in the creation of many new employment opportunities, many of which will provide employment to persons who live in affordable housing elsewhere in the City. For this reason, it would be highly advantageous to increase and upgrade the present supply of affordable housing within those areas of the City where such older housing stock currently exists. Based upon the foregoing considerations, it is apparent that the provision of funds to encourage the expansion and rehabilitation of affordable housing outside the Project Area would be of benefit to the Project Area. Both the Project Area and the low— and moderate—income residents of the City will benefit if the Agency is authorized to provide such affordable housing outside of the Project Area. RECOMMENDATIO&FOR ACTION That the City Council and the Agency accept the foregoing findings and approve the use of Agency tax increment funds for affordable housing development either inside or outtide the Project Area. Attachment /00428 44, �= --- Wi =