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Home My WebLink AboutCARLSBAD REDEVELOPMENT AGENCY; 2011-09-14;fit REMITTANCE AGREEMENT PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34194.2 HIS REMITTANCE AGREEMENT (this "Agreement") is entered into this // day 1, by and between the CITY OF CARLSBAD, a municipal corporation (the "City') and the CARLSBAD REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), with reference to the following facts: A. Assembly Bill No. XI 27 and Senate Bill XI 15 ("AB 27/SB 15") was passed by the State Legislature on June 15, 201 1 and signed by the Governor on June _ , 201 1. B. Upon enactment, AB 27/SB 15 is to be codified as Part 1.9 of the California Health and Safety Code, commencing with Section 34192 ("Part 1.9"). C. AB 27/SB 15 establishes a voluntary alternative redevelopment program whereby the City may choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an ordinance by the City to comply with the provisions of Part 1 .9 and make certain remittances described in Health and Safety Code Section 34194 to the county auditor-controller. D. The City Council of the City of Carlsbad (the "City Council") has adopted or, concurrently with this Agreement, is adopting, an ordinance to comply with Part 1.9 (the "Ordinance"). E. Pursuant to the Part 1.9 Ordinance, the City Council has committed to comply with and make the remittances required by Part 1.9 and authorize the continuation of the Agency after enactment of AB 27/SB 15. F. Pursuant to Section 34194.1, in making remittances to the county auditor-controller pursuant to Section 34194 or 34194.5, the City may use any available funds not otherwise obligated for other uses. G. Pursuant to Section 34194.2, the City may enter into an agreement with the Agency, whereby the Agency will transfer a portion of its tax increment to the City, in an amount not to exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals. H. The purpose of this Agreement is to provide for the transfer of funds by the Agency to the City in an amount sufficient for the City to make the remittances required by Part 1 .9., with net available tax increment in this current fiscal year and forthcoming fiscal years. I. The term "Net Available Tax Increment" is defined as any tax increment funds allocated to the Agency, net of existing debt service payments and existing third-party contractual obligations, not including any funds on deposit in the Agency's Low and Moderate Income 1 Housing Fund, and also not including any portion of tax increment funds to be allocated to the Low and Moderate Income Housing Fund pursuant to Health and Safety Code Section 33334.2, 33334.4 and 33334.6 for the 2011-12 fiscal year only, to the extent the Agency makes a finding that there are insufficient other moneys to meet its debt and other obligations, current priority program needs or its obligation to transfer funds to the City under Section 34194.2 as provided in this Agreement. J. The obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment plan for each of the Agency's redevelopment project areas. NOW, THEREFORE, the parties hereto do mutually agree as follows: I. INTRODUCTORY PROVISIONS The recitals above are an integral part of this Agreement and set forth the intentions of the parties and the premises on which the parties have decided to enter into this Agreement. II. OBLIGATIONS OF THE PARTIES 1. The Agency shall transfer to the City in a timely manner Net Tax Increment or other funds in an amount sufficient for the City to make the remittance payments required by Part 1.9. The amounts to be transferred to the City shall be sufficient for the City to pay the remittance amount determined by the State Director of Finance pursuant to Part 1.9, subject to the City's right to appeal the amount of remittance to the director pursuant to Part 1.9. 2. Subject to receipt of sufficient Net Tax Increment or other funds from the Agency, the City shall timely remit to the county auditor-controller the payments required by Part 1.9 as provided in the Ordinance. The City's obligation to make such remittances shall be a special limited obligation of the City payable solely from Net Available Tax Increment or any other funds made available to the City by the Agency, including but not limited to amounts previously or subsequently pledged to the City for payment of redevelopment expenses that remain unencumbered. Nothing contained in this Agreement shall be deemed to be a pledge of the City's general fund revenues or other assets to make the remittance payments contemplated by Part 1.9, it being understood that the any remittance payments shall be funded solely from Agency funds and/or assets. 3. The obligations of Agency under this Agreement shall be payable out of Net Available Tax Increment, as defined in the above recitals and/or as defined or provided for in any applicable constitutional provision, statute or other provision of law now existing or adopted in the future, levied by or for the benefit of taxing agencies in the Agency's redevelopment project area(s), and allocated to the Agency and/or any lawful successor entity of the Agency and/or any entity established by law to carry out the redevelopment plan for the redevelopment project area(s) and/or expend tax increment or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Health and Safety Code Section 33670 or any applicable constitutional provision, statute or other provision of law now existing or adopted in the future. In the event that additional funds are required in order to make the Agency payments to the City required by this Agreement, the Agency shall make such payments from income received by the Agency from its projects and programs or any other additional funds available to it. III. LIABILITY AND INDEMNIFICATION In contemplation of the provisions of California Government Code section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Agreement to the same extent that such liability would be imposed in the absence of Government Code section 895.2. To achieve the above-stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses that may be incurred by such other party solely by reason of Government Code section 895.2. IV. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS 1. This Agreement shall be executed in duplicate originals, each of which is deemed to be an original. This Agreement consists of five (5) pages which constitute the entire understanding and agreement of the parties. 2. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to the subject matter of this Agreement. 3. This Agreement is intended solely for the benefit of the City and the Agency. Notwithstanding any reference in this Agreement to persons or entities other than the City and the Agency, there shall be no third party beneficiaries under this Agreement. 4. Any waiver or amendment of the provisions of this Agreement must be in writing and signed by the authorized representatives of the parties. V. SEVERABILITY If any term, provisions, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidation, voiding or unenforceability. VI. BINDING ON SUCCESSORS This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. This Agreement shall survive any full or partial merger of the City and the Agency and shall remain in effect and be fully enforceable according to its terms. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above. CITY OF CARLSBAD By:l ^•/City Manager Attest: Approved as to form: City Attorney Ronald Ball CARLSBAD REDEVELOPMENT AGENCY By: Executive Director Attest: By: /[Nan$ Title^J Approved as to form: A /-i i /-i i - z • —-""oncu ; »Agency General Counsel -«• ; E = o\ 1970 /^,>, ,., By: / V^.^^MS^L<^ Ronald Ball cp „ -7 - / ^ Approved as to form: KANE, BALLMER & BERKMAN Agency Special Counsel By: