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5/19/1992 - Fiscal Agreement Re: Second Amended and Restated Central Campbell Redevelopment PlanFISCAL AGREEMENT REGARDING SECOND AMENDED AND RESTATED CENTRAL CAMPBELL REDEVELOPMENT PLAN (Cambrian School District) THIS FISCAL AGREEMENT REGARDING SECOND AMENDED AND RESTATED CENTRAL CAMPBELL REDEVELOPMENT PLAN (the "Agreement") is entered into as of May 19 , 1992 by and between the CITY OF CAMPBELL REDEVELOPMENT AGENCY, a public body, corporate and politic, and the CAMBRIAN SCHOOL DISTRICT, a public entity, on the basis of the following facts, understandings, and intentions of the parties: RECITALS A. These Recitals refer to and utilize certain capitalized terms which are defined in Article 3 below. The parties intend to refer to those definitions in connection with the use thereof in these Recitals and throughout this Agreement. B. The City has adopted the Current Plan and established the Existing Project Area. .C. The Agency is currently preparing for consideration by the City the Amended Plan which, among other matters, would add the Amendment Area to the Project Area. D. The District finds that proceeding with the redevelopment goals and objectives under the Amended Plan, including redevelopment of the Amendment Area, is in the interest of the public peace., health, safety and welfare; provided, that assurances can be made that the amendments to the Current Plan set forth in the Amended Plan that would add the Amendment Area to the Project Area will not cause a severe financial burden or detriment on the District. E. The District is a taxing agency within whose territory the Amended Plan will operate (with respect to the Amendment Area only) and has concern over the potential negative impact on its financial situation of the amendments to the Current Plan set forth in the Amended Plan. F. Health and Safety Code.Section 33401 provides that a redevelopment agency may pay to any affected taxing agency any amounts of money which in Agency's determination are appropriate to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment agency. 1030CIP50 -1- x G. The District has submitted evidence to the Agency identifying the financial burden or detriment caused by the amendments to the Current Plan set forth in the Amended Plan that would add the Amendment Area to the Project Area. H. The Agency has determined that payments of Amendment Area Tax Increment Revenue to District as set forth below are necessary to alleviate the burden and detriment caused to District by the amendments to the Current Plan set forth in the Amended Plan that would add the Amendment Area to the Project Area. I. The parties acknowledge and agree that the District's jurisdiction does not include any of the Existing Project Area and that the District will not suffer any financial burden or detriment as a result of the amendments to the Current Plan set forth in the Amended Plan that exclusively affect redevelopment of the Existing Project Area and the allocation to the Agency of Existing Project Area Tax Increment Revenue. J. . In consideration of this Agreement determining the obligations of Agency with respect to the Amended Plan, the District is foregoing the right to contest the adoption of the Amended Plan, the establishment of the Amendment Area as part of the Project Area, the implementation of the Project, and the development of property within the Project Area. ARTICLE 1 PAYMENTS TO THE DISTRICT Section 1.1. Amount of Payments. Subject to the limitations hereafter set forth in this Article 1, the Agency shall pay to the District, beginning in Fiscal Year 1993-94 and continuing throughout the term of this Agreement, an amount equal to forty-five percent (45%) of the District Share of Amendment Area Tax Increment Revenue. The District shall not be entitled to any payments with respect to Existing Project Area Tax Increment Revenue. Section 1.2 Method of Payments. Within thirty (30) days of the Agency's receipt of each installment of Amendment Area Tax Increment Revenue for a Fiscal Year, the Agency shall pay to the District the portion of such installment to which the District is entitled pursuant to Section 1..1 above. Section 1.3 Limitation on Payments. Notwithstanding any other provisions in this Agreement, no payments shall be made to the District by the Agency: 1030C2.PSO -2- (a) Which would exceed the amount, annually, that the District would have otherwise received from property taxes from the Project Area had the Amended Plan not provided for the division of taxes pursuant to Health and Safety Code Section 33670 et sea.; (b) The receipt of which would cause the District to rebate Pr transfer monies to any other entity due to the District's expenditure limitations under Article XIII-B of California Constitution; or (c) Which would be contrary to the provisions of Health and Safety Code Section 33401 or violate any other provision of the California Community Redevelopment Law or the laws of the State of California. Any excess amounts under subsection (a), (b) or (c) above shall be retained by the Agency for distribution, in the Agency's sole discretion, to other taxing entities or for the purposes of paying indebtedness incurred by the Agency in carrying out the Project. Section 1.4 Priority of Agency's Obligations. (a) The District acknowledges and agrees that, by operation of law, the obligation of the Agency to make any payment pursuant to this Agreement is expressly made subordinate to the Agency's obligation to make payments of principal, interest or other amounts on or in connection with the Agency's Long -Term Indebtedness that is outstanding as of the date of execution of this Agreement, and to any statutory obligations of the Agency, such as the Agency's housing set -aside obligation under Health and Safety Code Section 33334.2. (b) The District hereby authorizes the Agency to subordinate the interest of the District under this Agreement and to allow the Agency to pledge all or any portion of the Amendment Area Tax Increment Revenue otherwise payable to the District under this Agreement in order to secure the repayment of Agency Long -Term Indebtedness incurred after the date of execution of this Agreement; provided the Agency submits to the District evidence reasonably satisfactory to the District demonstrating its ability to repay such future Long -Term Indebtedness without demand being made on the payments due to the District under the terms of this Agreement. Upon receipt and review of evidence meeting the above standard, the District shall execute any instrument reasonably'required to effectuate the subordination provided for in this subsection (b). Nothing in this Agreement shall give the District the right to approve any Agency 1030C2.PSO - 3 - indebtedness except as the Agency may request the District to subordinate its right to payments under this subsection (b). Section 1.5 Indebtedness of Agency. This Agreement shall constitute an indebtedness of the Agency incurred in carrying out the Project and a pledging of Amendment Area Tax Increment Revenue from the Project (subject to the subordination provisions of Section 1.4) to repay such indebtedness under the provisions of Article XVI, Section 16 of the California Constitution and under the California Community Redevelopment Law. Section 1.6 Section 33676 Election Superseded. The parties agree that this Agreement supersedes any election previously or subsequently made or purported to be made by the District pursuant to Health and Safety Code Section 33676; that any such election shall be null and void and of no further force or effect; that the District shall take any action required by the Santa Clara County Auditor -Controller or other responsible County official required to rescind any such prior election and to notify the Santa Clara County Auditor -Controller or other responsible County official that the District has elected not to receive any amount pursuant to Health and Safety Code Section 33676; and that the District shall receive no payment of Tax Increment Revenue other than as expressly provided in this Agreement. Section 1.7 Use of Funds. All payments received by the District pursuant to this Agreement shall be applied by the District toward the provision of services and/or facilities of benefit to Campbell residents and/or employees. Upon request of the Agency to be made not more often than once each Fiscal Year, the District shall provide the Agency with an accounting of the manner in which such payments have been used for the above specified purpose. Section 1.8 Local Benefit of Payments. (a) The parties intend that the payments to be made by the Agency to the District pursuant to this Agreement will be available for use as additional funds of the District. In the event that any payment made to the District under this Agreement causes (1) a reduction in payments to the District from the State of California or a related -entity, or (2) an obligation of the District to make payments to the State of California or a related -entity, thus defeating that intention, the Agency shall have no further obligation to make such payment to the District under this Agreement and the amount otherwise payable shall be retained by the Agency for distribution, in the Agency's sole discretion, to other taxing entities or for the purpose of paying indebtedness incurred by the Agency in carrying out the Project. 1030C2.PSO -4 - (b) If a future legislative enactment requires the Agency to make specified payments to the District, the amount paid by the Agency to the District under this Agreement shall be applied and credited toward such obligation. ARTICLE 2 GENERAL PROVISIONS Section 2.1 Elimination of Financial Burden: No Contest of Amended Plan. The District acknowledges and agrees that the payments to be made and the actions to be undertaken by the Agency pursuant to this Agreement will mitigate any financial burden or detriment that would otherwise be caused by the adoption of the Amended Plan, implementation of the Project, and development of property in the Project Area. In consideration of such payments and actions, the District agrees to forgo any right or remedy it may have in law or equity to contest the preparation, adoption, or validity of the Amended Plan (including, without limitation, any right or remedy pursuant to the California Environmental Quality Act), the implementation of the Project contemplated to be undertaken pursuant to the Amended Plan (including the issuance or incurrance of Long -Term Indebtedness in connection therewith), and the development of property within the Project Area. Nothing in this Section 2.1 shall be construed to prevent the District from imposing or collecting any fee, assessment, tax or other change permitted by law with respect to the use and/or development of property in the Project Area. All written communications regarding the Amended Plan submitted to the City or Agency by the District or any agent or representative of the District (except such communications as are contained in the Fiscal Review Committee Report dated January 23, 1992) are hereby withdrawn by the District; it being understood and acknowledged by the District that execution of this Agreement constitutes a full and satisfactory response to such withdrawn communications and that, as a result of such withdrawal, no response by the City or Agency to any such communication from the District or any agent or representative of the District is required pursuant to Health and Safety Code'Section 33363. Section 2.2 Notices. All notices, statements, or other communications made pursuant to this Agreement to the other party shall be in writing, and shall be sufficiently given and served upon such other party if sent by United States registered mail, return receipt requested, postage prepaid, and addressed as follows: 1030C2.P50 - 5 - Agency: City of Campbell ..Redevelopment Agency 70 North First Street Campbell, CA 95008 Attn: Redevelopment Director District: Cambrian School District 4115 Jacksol Drive San Jose, CA 95124 Attn: Superintendent Either party may change its address for notice purposes by written notice to the other party prepared and delivered in accordance with the provisions of this Section 2.2. Section 2.3 No Third Party Beneficiaries. No person or entity other than the District and the Agency, and their, permitted successors and assigns, shall have any right of action under this Agreement._ Section 2.4 Litigation Regarding Agreement. In the event litigation is initiated attacking the validity of this Agreement, each party shall in good faith defend and seek to uphold the Agreement. Section 2".5 Term of Agreement. This Agreement shall take effect as of the date of execution of this Agreement and shall terminate upon the earliest to occur of: (a) the filing of an action in a court of competent jurisdiction by the Campbell Union High School District, the West Valley -Mission Community College District, the Cambrian School District, or the Santa Clara County Superintendent.of Schools challenging the adoption of the Amended Plan or any proceedings in.connection therewith; (b) a final judgment rendering the Amended Plan invalid; (c) certification by the Santa Clara County Registrar of Voters of a "no" vote in a referendum election on'the Amended Plan; or (d) expiration of the Amended Plan and completion of all obligations of the parties under this Agreement incurred during the term -of the Amended Plan. Following termination, neither of the parties shall have any further rights or obligations under this Agreement. Section 2.6 State Law. This Agreement, and the rights and obligations of the parties hereto, shall be construed and enforced in accordance with the laws of the,State of California. Section 2.7 Entire Agreement.- This Agreement represents the entire and integrated agreement between the Agency and the District and supersedes all prior negotiations, representations, or agreements, either written or oral made in connection with adoption of the Current Plan .or the Amended'Plan. This Agreement 1030C2.PSO - 6 - may be further amended only by written instrument, signed by both the Agency and the District. All provisions of this Agreement are expressly made conditions. ARTICLE 3 DEFINITIONS AND EXHIBIT Section 3.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the terms set forth in this Section shall have the following meanings: (a) "Agency" means the City of Campbell Redevelopment Agency, a public body, corporate and politic. (b) "Amendment Area" means the portion of the Project Area to be established by the Amended Plan, generally located as shown in the attached Exhibit A. (c) "Amended Plan" means the proposed Second Amended and Restated Central Campbell Redevelopment Plan, currently being prepared by the.Agency for consideration and adoption by the City. (d) "Amendment Area".Tax Increment Revenue" means those taxes allocated to the Agency pursuant to Health and Safety Code Section 33670 et sea. from increases in assessed valuation of the property in the Amendment Area above the valuation shown on the assessed valuation roll last equalized prior to the date of adoption of the City ordinance adopting the Amended Plan. (e) "City" means the City of Campbell; a municipal corporation, acting through its governing body, the City Council. (f) "Cumulative Existing Project AreaTax Increment Revenue" means, at any given time, the cumulative total of Existing Project Area Tax Increment Revenue less the cumulative total of payments made'to or retained by taxing entities pursuant to Health,and Safety Code Section 33401. (g) "Current Plan" means the First Amended and Restated Central Campbell Redevelopment Plan, initially adopted pursuant to Ordinance No. 1461 dated June 21, 1983, as amended and restated pursuant to Ordinance No. 1830 dated January 15, 1991. (h) "District" means the Cambrian School District, a public entity. (i) "District Share Revenue" means an amount 1030CIP50 of Amendment Area Tax Increment equal to eighty (80%) of the .portion of -7- Amendment Area Tax Increment Revenue that the District would receive from the Amendment Area were the Amended Plan not to provide for the division of taxes generated within the Amendment Area pursuant to Heath and Safety Code Section 33670 et sea. (j) "Existing Project Area" means the,portion of the Project Area established by the Current Plan, generally located as shown in the attached Exhibit'A. (k) ."Existing Project Area Tax Increment Revenue" means those taxes allocated to the Agency pursuant to Health and Safety Code Section 33670 et 'sea. from increases in assessed valuation of the property in the'Existing Project Area above the valuation shown on the assessed valuation roll last equalized prior to the date of adoption of City Ordinance No. 1461 initially adopting the Current Plan. (1) "Fiscal Year" means the period commencing on July 1 and ending on the following June 30. (m) "Long -Term Indebtedness" means any indebtedness of the Agency heretofore or hereafter entered into by the -Agency with a term of at least two years, and includes, without limitation, bonded indebtedness of the Agency issued and outstanding as of the date of execution of this Agreement, and the Agency's obligations to the City in connection with certificates of participation issued by the City and outstanding as of the date of execution of this Agreement. (n) "Project" means the program,of redevelopment to be undertaken pursuant to;the Amended Plan. (o) "Project Area" means the Central Campbell Redevelopment Project Area to be described in the Amended.Plan and generally located as shown in the attached Exhibit A. The Project Area will consist of the Existing Project Area and the Amendment Area. (p) "Tax Increment Revenue" means, collectively, Existing Project Area Tax Increment Revenue and Amendment Area Tax Increment Revenue. Section 3.2. Exhibit- Exhibit A (Map of Project Area) is attached to and incorporated in this Agreement by this reference. 1030C2.PSO -8- IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. APPROVED AS TO FORM CAMBRIAN SCHOOL DISTRICT Counsel -District / ATTEST: By: 4. Gl . Secretary APPROVED AS TO FORM: CITY OF CAMPBELL REDEVELOPMENT AGENCY By: By:� gency counMel Chairperson, Redevelopment Agency ATTEST: By: T Agency Secretary -9- m