HomeMy WebLinkAboutUkiah Redevelopment Agency 2011-08-17COMMUNITY REMITTANCE FUNDING AGREEMENT
(Health and Safety Code Section 34194.2)
This COMMUNITY REMITTANCE FUNDING AGREEMENT ("Agreement"), is
entered into as of August 17, 2011, by and between the CITY OF UKIAH, a California
municipal corporation ("City"), and the REDEVELOPMENT AGENCY OF THE CITY OF
UKIAH, a public body, corporate and politic ("Agency"). The City and the Agency are
sometimes, individually, referred to in this Agreement as a "Party" or are sometimes,
collectively, referred to in this Agreement as the "Parties." The Parties enter into this
Agreement with reference to the following recited facts:
RECITALS
A. Pursuant to the Community Redevelopment Law (Health and Safety Code
Sections 33000, et seq.) ("CRL"), the City Council of the City created the Agency to serve as the
redevelopment agency within the City; and
B. The Agency has been responsible for implementing the Redevelopment Plan(s)
for the Ukiah Redevelopment Project(s) covering certain properties within the City ("Project
Area(s)"); and
C. As part of the 2011-2012 State budget bill, the California Legislature enacted, and
the Governor signed, companion bills AB 1X 26 and AB 1X 27, requiring that each
redevelopment agency be dissolved unless the community that created it enacts an ordinance
committing it to making certain payments; and
D. Specifically, AB 1X 26 prohibits agencies from taking numerous actions,
effective immediately and purportedly retroactively, and additionally provides that agencies are
deemed to be dissolved as of October 1, 2011; and
E. AB 1X 27 provides that a community may participate in an "Alternative
Voluntary Redevelopment Program," in order to enable a redevelopment agency within that
community to remain in existence and carry out the provisions of the CRL, by enacting an
ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and
F. On August 3, 2011, the City adopted Ordinance No. 1131, stating the City's
election to participate in the Alternative Voluntary Redevelopment Program, subject to certain
terms and conditions, and has notified the Mendocino County Auditor-Controller, the Controller
of the State of California, and the California Department of Finance of such election
("Ordinance"); and
G. Participation in the Alternative Voluntary Redevelopment Program requires the
City to remit specified annual amounts to the county auditor-controller ("Community
Remittance"); and
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H. The California Director of Finance has notified the City that its Community
Remittance for Fiscal Year 2011-2012 is One Million Seven Hundred Sixty-Six Thousand Five
Hundred Four Dollars ($1,766,504); and
1. California Health and Safety Code Section 34194.2, enacted by AB IX 27,
provides that the City may enter into an agreement with the Agency, whereby the Agency will
transfer a portion of the taxes allocated to it pursuant to Health and Safety Code Section 33670
("Tax Increment") to the City in a particular fiscal year, in an amount not to exceed the amount
of the Community Remittance for such fiscal year, for the purpose of financing activities within
the Project Area(s) related to the Agency's goals; and
J. The Agency desires to transfer an annual amount of Tax Increment to the City and
the City desires to accept such transfer of Tax Increment from the Agency, in an amount not to
exceed the amount of the Community Remittance required under AB 1 X 27, beginning in Fiscal
Year 2011-2012 and in each subsequent fiscal year, for as long as the City is paying a
Community Remittance, all in accordance with the terms and conditions of this Agreement; and
K. A Petition for Writ of Mandate was filed in the Supreme Court of the State of
California on July 18, 2011 (California Redevelopment Association, et al. v. Ana Matosantos, et
al., Case No. 5194861), challenging the constitutionality of AB 1X 26 and AB 1X 27 on behalf
of cities, counties and redevelopment agencies and requesting a stay of enforcement; and
L. While the Ordinance states that the City intends to make the Community
Remittances, they shall be made under protest and without prejudice to the City's right to recover
such amounts and interest thereon if there is a final determination that AB IX 26 and AB IX 27
are unconstitutional or otherwise invalid; and
M. As further stated in the Ordinance, the City reserves the right, whether any
Community Remittance has been paid, to challenge the legality of AB I X 26 and AB I X 27.
AGREEMENT
NOW, THEREFORE, in consideration of the promises of the City and the Agency
contained in this Agreement and other good and valuable consideration, the City and the Agency
agree as follows:
1. Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement are
true and correct and are incorporated into this Agreement in their entirety by this reference.
2. Transfer of Tax Increment to City. Throughout the term of this Agreement, Agency
hereby agrees to transfer to City, out of Tax Increment or any other available funds, an amount
equal to the amount of the Community Remittance for each fiscal year, as determined under
Health and Safety Code Section 34194. No later than January 10 and May 10 of each fiscal year,
Agency shall transfer to City one-half of the Community Remittance payment specified for such
fiscal year, as determined pursuant to Health and Safety Code Section 34194 in order that City
may timely make the Community Remittance payments. The City and Agency agree that if
Agency does not have sufficient Tax Increment available to make the full Community
Remittance payment in any fiscal year, City shall have no obligation to use City funds for such
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purpose, in which case the Agency may be deemed to be dissolved under Health and Safety
Code Section 34195. Notwithstanding the foregoing, if a stay of enforcement of AB 1X 26 and
AB 1X 27 is granted by a court of competent jurisdiction, Agency shall have no obligation to
transfer any monies under this Section 2 for the duration of the stay.
3. City Payment of Community Remittance Each Fiscal Year. Subject to the timely receipt
of Tax Increment or other funds from the Agency in an amount equal to the amount of the
Community Remittance, the City shall pay to the Mendocino County Auditor-Controller, no later
than January 15 and May 15 of each year, one-half of the Community Remittance amount due
for such fiscal year while this Agreement is in effect. The City's obligation to make such
Community Remittance payments shall be a special limited fund obligation of the City payable
solely from Tax Increment or other funds paid to the City by the Agency pursuant to this
Agreement. Nothing contained in this Agreement is intended to nor shall be deemed to be a
pledge of the City's general fund revenues or other City assets to pay the Community Remittance
for any fiscal year. Notwithstanding the foregoing, if a stay of enforcement of AB 1X 26 and
AB 1X 27 is granted by a court of competent jurisdiction, City shall have no obligation to make
the Community Remittance payment for the duration of the stay.
4. Termination. This Agreement shall be deemed null and void if AB 1X 26 and AB 1X 27
are determined by a court of competent jurisdiction to be unconstitutional, illegal, invalid or
otherwise unenforceable or inapplicable, for any reason or in any manner. Notwithstanding the
foregoing or any other provision of this Agreement, either the City or the Agency may terminate
this Agreement at any time, for any reason or no reason.
5. General Provisions.
5.1 Notices, Demands and Communications Between the Parties. Any and all notices
submitted by either Party to the other Party pursuant to or as required by this Agreement shall be
proper, if in writing and transmitted to the address of the City or the Agency, as applicable, set
forth below in this Section 5.1, by one or more of the following methods: (1) messenger for
immediate personal delivery; (2) a nationally recognized overnight (one business day) delivery
service (i.e., Federal Express, United Parcel Service, etc.); or (3) registered or certified United
States mail, postage prepaid, return receipt requested. Such notices may be sent in the same
manner to such other addresses as either Party may designate, from time to time, by notice. Any
notice shall be deemed to be received by the addressee, regardless of whether or when any return
receipt is received by the sender or the date set forth on such return receipt, on the day that the
notice is delivered by personal delivery, on the date of delivery by a nationally recognized
overnight courier service (or when delivery has been attempted twice, as evidenced by the
written report of the courier service) or four (4) calendar days after the notice is deposited with
the United States Postal Service for delivery, as provided in this Section 5.1. Rejection, other
than refusal to accept or the inability to deliver a notice because of a changed address of which
no notice was given or other action by a person to whom notice is sent, shall be deemed receipt
of the notice. The following are the authorized addresses for the submission of notices to the
Parties, as of the date of this Agreement:
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To City: City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Attn: City Manager
To Agency: Redevelopment Agency of the
City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Attn: Executive Director
5.2 Calculation of Time Periods. Unless otherwise specified, all references to time
periods in this Agreement measured in days shall be to consecutive calendar days, all references
to time periods in this Agreement measured in months shall be to consecutive calendar months
and all references to time periods in this Agreement measured in years shall be to consecutive
calendar years.
5.3 Principles of Interpretation. No inference in favor of or against any Party shall be
drawn from the fact that such Party has drafted any part of this Agreement. The Parties have
both participated substantially in the negotiation, drafting, and revision of this Agreement, with
advice from legal and other counsel and advisers of their own selection. A word, term or phrase
defined in the singular in this Agreement may be used in the plural, and vice versa, all in
accordance with ordinary principles of English grammar, which shall govern all language in this
Agreement. The words "include" and "including" in this Agreement shall be construed to be
followed by the words: "without limitation." Each collective noun in this Agreement shall be
interpreted as if followed by the words "(or any part of it)," except where the context clearly
requires otherwise. Every reference to any document, including this Agreement, refers to such
document, as modified from time to time (excepting any modification that violates this
Agreement), and includes all exhibits, schedules, addenda and riders to such document. The
word "or" in this Agreement includes the word "and." Every reference to a law, statute,
regulation, order, form or similar governmental requirement refers to each such requirement as
amended, modified, renumbered, superseded or succeeded, from time to time.
5.4 Governing Law. The substantive and procedural laws of the State of California
shall govern the interpretation and enforcement of this Agreement, without application of
conflicts or choice of laws principles.
5.5 Binding on Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective legal representatives, successors and
assigns.
5.6 No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is
intended to confer any rights or remedies under or by reason of this Agreement on any person
other than the Parties and their respective permitted successors and assigns, nor is anything in
this Agreement intended to relieve or discharge any obligation of any third person to any Party or
give any third person any right of subrogation or action over or against any Party.
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5.7 Signature in Counterparts. This Agreement may be signed by the authorized
representatives of the Parties in multiple counterpart originals, each of which shall be deemed to
be an original, but all of which together shall constitute one and the same document.
5.8 Entire Agreement. This Agreement includes six (6) pages that constitute the
entire understanding and Agreement of the Parties regarding the subjects addressed in this
Agreement. This Agreement integrates all of the terms and conditions mentioned in this
Agreement or incidental to this Agreement, and supersedes all negotiations or previous
agreements between the Parties with respect to the subjects addressed in this Agreement.
5.9 Time Declared to be of the Essence. As to the performance of any obligation
under this Agreement of which time is a component, the performance of such obligation within
the time specified is of the essence.
[Signatures on the following page]
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SIGNATURE PAGE
TO
COMMUNITY REMITTANCE FUNDING AGREEMENT
CITY OF UKIAH REDEVELOPMENT AGENCY OF THE
a California municipal corporation CITY OF UKIAH
a public body, corporate and politic
N rn/e: Jane Chambers
Title: City Manager
N4/ e:Jane Chambers
Title: Executive Director
ATTEST:
By: (I - M 0'44--~
U JoAnne M. Currie, City Clerk
APPROVED AS TO FORM:
By:
Davld Rapport, City ;AW
ATTEST:
By:
Linda Brown, gency Secretary
APPROVED AS TO FORM:
By: X (LI,
Rapport , gency Counsel
82661.00001\6849879.1 6
