HomeMy WebLinkAboutCommunity Redevelopment Agency of the City of Grand Terrace-2011-28 CTc :� 12
AGREEMENT TO TRANSFER TAX INCREMENT
This AGREEMENT TO TRANSFER TAX INCREMENT ("Agreement") is entered into
as of September 27,2011 ("Date of Agreement"),by and between the CITY OF GRAND
TERRACE,a municipal corporation ("City") and the COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF GRAND TERRACE,a public body, corporate and politic
("Agency").
RECITALS
A. The Agency is a community redevelopment agency organized and existing under the
California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq.
("CRL") and has been authorized to transact business and exercise the powers of a
redevelopment agency pursuant to action of the City Council ("City Council")of the City.
B. The Agency receives and has available to it tax increment revenues in accordance with and
pursuant to CRL Section 33670(6) and Article XVI Section 16 of the California Constitution
("Tax Increment").
C. Parts 1.8, 1.85 and 1.9 of Division 24 of the Health and Safety Code were added to the CRL
by ABXI 26 and ABX 1 27, which measures purport to become effective immediately.
ABXI 26 and ABXI 27,which are trailer bills to the 2011-12 budget bills, were approved by
both houses of the Legislature on June 15, 2011 and sired by the Governor on June 28,
2011.
D. Part 1.85 of the CRL("Part 1.85")provides for the statewide dissolution of all redevelopment
agencies, including the Agency,as of October 1, 2011, and provides thereafter for a
successor agency to administer the existing obligations of the Agency and otherwise wind up
its affairs, with such actions as the successor agency may take subject to the review and
approval by an oversight committee.
E. Part 1.8 of the CRL("Part 1.8") provides for the restriction of activities and authority of the
Agency in the interim period prior to dissolution to certain"enforceable obligations"and
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provides for actions required for the general winding up of affairs,preservation of assets,and
certain other goals delineated in Part 1.8.
F. Part 1.9 of the CRL("Part 1.9")provides that an Agency to continue in operation if a city or
county that includes a redevelopment agency adopts an ordinance agreeing to comply with
and participate in the Alternative Voluntary Redevelopment Program established in Part 1.9
("Program").
G. Those cities or counties electing to participate in the Program,as a condition of its
redevelopment agency's continued existence and operation, are required to make certain
annual remittances("Program Remittances")to the county auditor-controller pursuant to
Chapter 3 of Part 1.9,beginning with a larger upfront remittance for the 2011-2012 fiscal
year("First Remittance"),to be paid in two equal installments on January 15,2012 and May
15,2012.
H. The Agency will have sufficient funds and revenues to fund an amount equal to the City's
payment of the First Remittance and expects to have funds and revenues sufficient to fund
amounts equal to the subsequent annual remittances required by Part 1.9.
1. The City and Agency desire to enter into this Agreement pursuant to CRL Section 34194.2
whereby the Agency shall transfer portions of Tax Increment to the City in an amount equal
to the First Remittance, and thereafter to transfer amounts of Tax Increment equal to any
subsequent remittance which the City is required to make to the county auditor-controller
pursuant to the City's participation in the Program.
AGREEMENTS
1. The Agency shall be liable to City for the payment of the Program Remittances in connection
with the City's participation in the Program. The Agency agrees that no later than fifteen
(15) days prior to the date upon which the City shall be statutorily required to make any full
or partial payment of a Program Remittance,the Agency shall transfer funds to the City in an
amount equal to such payment; each such payment by the Agency shall be referred to herein
as a"Required Agency Payment" and, as such payments are combined, "Required Agency
Payments." The obligation for each Required Agency Payment shall accrue until paid;
interest shall accrue on any unpaid balance of the Required Agency Payments at an annual
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interest rate equal to the maximum rate permitted by Section 53531 of the Government Code.
Interest on amounts paid as Required Agency Payments shall be deemed to begin accruing on
the date upon which the City makes any required Program Remittance to the county auditor-
controller.
2. The Agency pledges revenues available to the Agency under Section 33670(6) of the
California Health& Safety Code ("Tax Increment")to repayment of its indebtedness to the
City hereunder;provided that such pledge is junior and subordinate to all outstanding bonds
of the Agency (including without limitation the Agency's obligations under the following: (i)
the $15,175,000 Community Redevelopment Project Area,Tax Allocation Bonds, Issue of
201 lA(the"201 IA Bonds'); (ii)the $5,650,000 Community Redevelopment Project Area,
Taxable Tax Allocation Bonds, Issue of 2011 B (the "2011B Bonds");and (iii)the
$13,000,000 Community Redevelopment Project Area Refunding Tax Allocation Bonds,
Series 2004, any refunding bonds issued by the Agency, and any additional bonds issued
hereafter by the Agency. The City and Agency agree that such obligation by Agency to City
may be further subordinated by written agreement of the City and the Agency.
3. The obligations of the Agency under this Agreement shall constitute an indebtedness of the
Agency within the meaning of Section 33670 et seq.of the Community Redevelopment Law.
4. The City agrees to use the funds it receives pursuant to this Agreement in accordance with
the laws of the Unites States and the State of California, including the CRL, all as applicable.
5. Effectiveness of this Agreement is subject to a final determination by a California court of
competent jurisdiction upholding the Program or otherwise allowing for payments to be made
by the Agency to the City.
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IN WITNESS WHEREOF,the parties have executed this Agreement as of the date first
above written.
CITY OF GRAND TERRACE
By:
City pager
ATTEST:
I21,rm u 6 -rAn 1-11
Interim CitWCIerli
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF GRAND TERRACE
By: Executiv irec or
ATTEST:
Interim Ag€bcy Secretary
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