84R-218
RESOLUTION NO. ~18
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ~NAHEIM DETERMINING CERTAIN EDUC~TIONAL
AND SUPPORT FACILITIES FOR PLACENTIA UNIFIED
SCHOOL DISTRICT TO BE OF BENEFIT TO 'rHE
RIVER V~LLEY REDEVELOPMENT PROJECT AND THAT
NO OTHER REASONABLE MEANS OF FINANCING SAID
FACILITIES IS AVAILABLE: AND CONSENTING TO
THE PAYMENT BY THE ANAHEIM REDEVELOPMENT
AGENCY TO THE PLACENTIA UNIFIED SCHOOL
DISTRICT TOWARDS THE COSTS OF SAID FACILITIES
WHEREAS, the City Council of the City of Anaheim
("City Council") has previously approved the Redevelopment Plan
for the River Valley Redevelopment project: and
WHEREAS, the need to provide certain educational and
support facilities is necessary for the successful
implementation of the River Valley Redevelopment project under
the provisions of the California Community Redevelopment Law
(Health and safety Code, Sections 33000 et seq.): and
WHEREAS, the Anaheim Redevelopment Agency ("Agency")
desires to pay toward the cost of these certain educational and
support facilities, on the terms and conditions contained in
Agreement for Reimbursement of Tax Increment Funds
("Agreement") between the Agency and Placentia Unified School
District, a copy of which is attached hereto as Exhibit "1": and
WHEREAS, section 33445 of the California Health and
safety Code requires the City Council to consent to such
payments and to determine that such facilities are of benefit
to the River Valley project area and the immediate neighborhood
in which the project is located, and that no other reasonable
means of financing the subject facilities is available to the
community: and
WHEREAS, the city council has held a public hearing to
consider such payments, after duly publishing notice of such
hearing, and making the summary referred to in Section 33679
available for public inspection; and
WHEREAS, the City Council has reviewed and considered
the proposed Agreement and the information contained in said
summary referred to in Section 33679, and all testimony at the
public hearing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Anaheim as follows:
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I. The City Council hereby finds and determines that
the educational and support facilities specified
in the Agreement are of benefit to the River
Valley Redevelopment project area and the
immediate neighborhood in which the project is
located.
2. The City Council hereby finds and determines that
no other reasonable means of financing said
facilities are available to the community.
3. The City Council hereby consents to and approves
the payment of property tax increment to be made
by the Agency to the Placentia unified School
District pursuant to the Agreement toward the
cost of said educational and support facilities.
THE FOREGOING RESOLUTION is approved and adopted by
the City Council of the City of Anaheim this 12th day
o f June I 9 8 4 .
A2nt1~
MAYOR OF THE CITY OF ANAHEIM
~ 'r 'r EST :
~~ 'iL~~
CITY CLERK OF THE CITY OF ANAHEIM
0070C
EXHIBITS l-A,B, C
Exhib it 2
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 84R -218 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 12th day of June, 1984, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 84R -218 on the 12th day of June, 1984.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 12th day of June, 1984.
le
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 84R -218 duly passed and
adopted by the Anaheim City Council on June 12, 1984.
/
CITY CLER
EXHIBI'r "1"
2
AGREEMENT FOR REIMBURSEMENT OF TAX INCREMENT FUNDS
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THIS AGREEMENT is made and entered into by and between
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the
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ANAHEIM REDEVELOPMENT AGENCY, a public body,
corporate and politic,
hereinafter referred to as "AGENCY,"
A
N
D
PLACENTIA UNIFIED SCHOOL DISTRICT,
hereinafter referred to as "PLACENTIA DISTRICT."
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W I T N E S S E T H :
I . ( s 100) RECI'rALS
1 . The Agency is carrying out the River Valley
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Redevelopment project (hereinafter the "Project") pursuant to
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the Redevelopment Plan for the project approved and adopted by
the City Council of the City of Anaheim by Ordinance No. 4463.
2.
The said Redevelopment Plan includes a provision
authorizing the allocation to the Agency of property taxes
levied by all taxing agencies on the increase in the assessed
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valuation of property within the Project Area between the
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assessed valuation of said property on the 1983/84 assessment
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roll and the assessed valuation thereon shown on each
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assessment roll sUbsequent thereto.
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A substantial portion of the land area and assessed
valuation of the Project area is located within the boundaries
of the above-mentioned taxing entity and, as such, may have an
adverse fiscal impact on it.
4. Consultations between the Agency and Placentia
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District reveal that the Project, by virtue of the tax
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allocation provision of the Redevelopment Plan, may have
certain adverse fiscal impacts on Placentia District, thereby
depriving it of tax revenues and advantages otherwise available
to it.
5. The Agency is authorized by Section 33401 of the
Health and Safety Code to compensate affected taxing entities
for any amounts of money which the Agency determines is
appropriate in the alleviation of any financial burden or
detriment caused by the Redevelopment Project.
6. In addition, the Agency is authorized by Section 33445
of the Health and Safety Code, with the consent of the City
Council of the City of Anaheim, to pay all or part of the value
of the land and the cost of the installation and construction
of any building, facility, structure, or other improvement
(hereinafter sometimes referred to as Placentia District
"facilities"), owned or to be owned by the Placentia District,
whether within or without the Project area, upon a
determination by the City Council of the City of Anaheim that
such buildings, facilities, structures, or other improvements
are of benefit to the Project area or the immediate
neighborhood in which the Project is located and that no other
reasonable means of financing such buildings, facilities,
structures, or other improvements are available to t_~
community (the "community" as defined in the Community
Redevelopment Law means the City of Anaheim).
7. The purpose of this Agreement is to provide for
appropriate payments to be made by the Agency to the P1acentia
District in order:
(1) to alleviate any financial burden or
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detriment caused to the Placentia District by the allocation
of funds to the Agency from certain tax levies; (2) to assist
the placentia District by paying for all or part of the cost
of certain Placentia District facilities which are of benefit
to the project area or the immediate neighborhood in which the
project is located and for which no other reasonable means of
financing is available to the community.
8. The Project may affect the Placentia District in that
the redevelopment of the project area may result in increased
student enrollment within the placentia District by reason of
the residential growth which will occur in the immediate
neighborhood of the project area because of industrial and
commercial development within the project area.
9. The parties herein agree that the Placentia
District's potential financial detriment shall be offset by
the allocated amounts set forth herein.
NOW, THEREFORE, for and in consideration of the foregoing
premises, and for their mutual advantage and concern, the
parties do hereby agree as follows:
PAYMENT TO THE PLACENTIA DISTRICT
II. (S 200)
A.
(S 201)
Payment for Facilities
The continued availability of quality educational
opportunities in and around the project area is an important
factor (1) to serve students living in the immediate
neighborhood in which the project is located, and (2) to
attract additional private investment into the project area
for development and thus assist in the implementation of the
Redevelopment Plan.
Moreover, the continued implementation of
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the Redevelopment Plan will contribute to the need to support
the Placentia District's student population in the immediate
neighborhood of the project area by attracting new residents
to the area to work in the industrial and commercial
establishments which will be developed in the project area.
Such increase in student population will in turn contribute to
the Placentia District's need for new and improved educational
and support facilities of various types.
The city and Agency have found by resolutions that the
facilities listed and described in Exhibit "A" and located
generally as shown in Exhibit "B" (both of which are attached
hereto and incorporated herein by this reference) will benefit
the project area and the immediate neighborhood in which the
project is located and that no other reasonable means of
financing such facilities is available to the community. The
Agency and the Placentia District desire to have the Agency
provide financial assistance to the Placentia District for the
purchase of land and the construction and installation of
Placentia District facilities, as listed in Exhibit "A" in the
manner set forth in Sections 202-206.
(S 202)
B.
Amount of Payment
For fiscal year 1987-88 through 2002-2003, both inclusive,
the Agency hereby agrees to pay to Placentia District a sum
equal to 9.65% of the "property tax revenues", as that term is
hereinafter defined, and actually received by the Agency from
the incremental assessed valuation of that portion of the
Project area within the Placentia District for each such
fiscal year.
As used in this Agreement, the term "property
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tax revenues" shall only include:
(1) all ad valorem property
taxes allocated and paid to the Agency pursuant to Article
XVI, Section 16 of the California Constitution and Health and
Safety Code Section 33670, et seq., and (2) identifiable
California state legislative supplements to or substitutes for
ad valorem property tax.
Provided, however, by way of example
and not of limitation, that the term "property tax revenues"
as used herein shall not include:
(1) Revenues, funds, monies, awards, loans, grants
or credits whose source, directly or indirectly,
is the Federal Government: nor,
(2) Any monies or funds received from any other
public source (state, County, Municipal, or
otherwise) as a result of any loan, grant, or
award, or similar payment: nor
(3) Any public funds, or assessment, received by the
Agency upon a condition, limitation or
restriction that precludes use of such funds for
payment to the Placentia District pursuant to
this Agreement; nor
(4) Proceeds from disposition of any real or
personal property; nor
(5) Proceeds from the sale of bonds or loan
agreements.
(S 203)
Limitation on Payments
C.
Notwithstanding any other provision of this Agreement to
the contrary, the Agency's obligation to make payments to the
Placentia District under, and by reason of this Agreement,
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shall be limited in any fiscal year to the amount of property
tax revenues paid to the Agency which would not have been so
paid to the Agency, but for the existence of the Placentia
District and which otherwise would have been allocated to the
Placentia District.
Such limitation on the Agency's obligation
shall be deemed to be the sum of the amounts paid to the Agency
in any fiscal year:
(1) from the levy of all Placentia
District tax rates on the incremental assessed valuation of the
Project within the Placentia District for such fiscal year: (2)
from the Placentia District's portion of any property tax rate
levied by any other public agency on behalf or to the benefit
of the Placentia District (including, without limitation, the
Placentia District's portion of the property tax rate currently
authorized to be levied by the County of Orange under Revenue
and Taxation Code Section 93(b)), with such rate being applied
to the incremental assessed valuation of the Project within the
Placentia District for such fiscal year; and (3) from the
Placentia District's portion of any identifiable legislative
supplements to, or substitutes for, ad valorem property tax on
the incremental assessed valuation of the project within the
Placentia District (as set forth in Section 202 hereof).
Provided further, that the Agency shall have no obligation
to make payments to the Placentia District in any fiscal year
to the extent that the Placentia District is legally precluded
under the Gann Initiative from appropriating such revenues.
(S 204)
D.
Payment Procedure
Within ninety (90) days after the date of this Agreement,
the Placentia District shall establish a special fund entitled
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River Valley Facilities Fund (the "Fund").
The Placentia
District shall credit to said Fund any payments received from
the Agency pursuant to Section 202.
Commencing with fiscal
year 1987-1988 and annually thereafter, through the 2002-2003
fiscal year, and provided Agency shall have received property
tax revenues for such fiscal year, the Agency shall pay to the
Placentia District on July 31 following each fiscal year 9.65%
of the property tax revenues generated from that portion of the
Project area within the Placentia District for such preceding
fiscal year and actually received by the Agency from July 1
through June 30 of such preceding fiscal year; and, thereafter,
9.65% of any other property tax revenues from said portion of
the Project area for such preceding fiscal year within 30 days
after the same have been actually received by Agency. For
purposes of this Agreement, the fiscal year shall run from
July 1 to June 30.
In the event Agency, after payment to Placentia District as
set forth above, shall be required to refund or return any
property tax revenues from which Placentia District's payments
were derived or suffer an offset or credit against future
property tax revenues on account thereof, the Placentia
District shall refund, return or allow a credit to Agency in
the amount of 9.65% thereof.
(S 205)
E.
Income from Fund
All income, whether by interest or otherwise, earned by the
Fund shall be the property of the Placentia District and shall
be used for the same purposes as the principal pursuant to this
Agreement.
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F.
(S 206)
Use of Funds
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The Placentia District shall not make any expenditure from
the Fund, nor incur any liability to be paid from said Fund,
except to pay all or part of the value of the land for and/or
the cost of the installation and construction of the Placentia
District buildings, facilities, structures, and other
improvements listed in Exhibit WA," or such other Placentia
District facilities as the City and Agency may hereafter
approve with appropriate findings by resolution pursuant to the
Community Redevelopment Law.
The Placentia District agrees to provide to the Agency not
later than September 15 of each fiscal year through 2002-2003
an accounting of expenditures made and liabilities incurred
during the preceding fiscal year with respect to funds paid to
the Placentia District pursuant to this Agreement.
Said
accounting shall specify the amounts spent or encumbered for
the respective Placentia District bUildings, facilities,
structures and other improvements designated in Exhibit "A,"
describe generally the status of planning, design and
construction thereof, and contain a certification that the
funds provided by the Agency hereunder have been expended or
encumbered in compliance with the requirements of this
Agreement.
I I I .
(~ 300)
ADDITIONAL TERMS AND PROVISIONS
The payments to the Placentia District of the amounts set
forth in Section 202 are supported by, limited by, and/or
subject to the following additional terms and provisions:
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A. (~301) Agency Indebtedness
The obligations of the Agency under this Agreement are
indebtednesses of the Agency for the purposes of carrying out
the Redevelopment Plan for the Project area, which
indebtednesses are payable out of and only out of taxes levied
by local taxing agencies in the Project area and paid to the
Agency under Section 33670 of the Health and Safety Code.
B. (S 302) Subordination; Deferral
1. (S 303) Subordination
In the event the Agency desires to issue bonds, notes, or
other instruments of indebtedness of the Agency to pay for the
public improvements described in Exhibit "C" (which is attached
hereto and incorporated herein by the reference), including,
all direct and indirect outlays necessary or appropriate for
effectuating these public improvements, then the indebtedness
of the Agency under this Agreement shall be deemed not to be a
first pledge of property tax revenues received by the Agency
pursuant to Health and Safety Code Section 33670; and the
indebtednesses of the Agency under this Agreement shall be
subordinate to any pledge of property tax revenues to such bond
holders or such holders of other instruments of indebtedness.
This subordination includes any amounts the Agency is required
by law to allocate from tax increment funds for specified
purposes, such as low and moderate income housing.
2.
(~ 304)
Deferral
If property tax increment revenues received by the Agency
in any fiscal year, after payment by the Agency of all priority
debt service charges as referred to in Section 303 (including
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without limitation all interest, principal, reserve
requirements and similar obligations), are insufficient to pay
in full the outstanding balances of all obligations to all
taxing agencies to which the Agency has agreed to make the
payments authorized by Section 33401 and/or Section 33445 of
the California Community Redevelopment Law, then the Agency
shall pay to the Placentia District for the applicable fiscal
year an amount equal to the total tax increment funds available
for payment to all taxing agencies, multiplied by a fraction
the numerator of which is the outstanding balance then owed to
the Placentia District and the denominator of which is the
outstanding balance then owed to all taxing agencies. Any
amount owed to the Placentia District for a fiscal year, which
is not paid because funds are not available after payment of
priority obligations and other taxing agencies, shall be
carried forward to the next fiscal year (without interest) and
paid by the Agency in accordance with the procedure described
above as funds become available and until paid in full or until
cancelled pursuant to the last paragraph of this Section 304.
The Agency shall not have any further responsibility for
the payment of any tax increment obligation to the Placentia
District whether deferred or otherwise relative to any taxes
received by the Agency for the fiscal year 2003-2004 or any
year thereafter and the Placentia District shall have no right
or claim against the Agency with respect thereto.
(S 305)
c.
Indemnity; Insurance
Placentia District agrees to indemnify and hold the Agency
and the City of Anaheim harmless from all claims, expenses,
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damages and liability for any injury or damage to persons or
property arising from the construction or operation of any
bUilding, facility, structure, or other improvement designated
for Agency financial assistance under this Agreement and made
against Agency and/or the City of Anaheim as a result of the
payment of funds or other performance under the Agreement. If
the Placentia District, or any agent or contractor of the
Placentia District, carries liability insurance with respect to
the Placentia District facilities which are the subject of this
Agreement, Placentia District agrees to name or cause to be
named the Agency and the City as additional insureds to the
extent of the Agency and City's performance hereunder.
D. (S 306) Legal Fees
In the event either party to this Agreement is required to
institute litigation to enforce its legal rights arising out of
this Agreement, the prevailing party in such action shall be
entitled, in addition to its other relief, to recover
reasonable attorney fees.
E. (S 307) Entire Agreement
This Agreement constitutes the entire understanding and
agreement between the parties and supersedes all previous
negotiations between them.
It is the intent of the Agency and
Placentia District that the payments herein provided constitute
a full, complete, fair and equitable adjustment for all
financial and other impacts which have or may result during the
term of this Agreement from the Project or any amendment
thereto which does not add to the area within the Placentia
District, and for which Agency may make payments to Placentia
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District under the California Community Redevelopment Law,
2 Health and Safety Code Section 33000, et ~
3 IN WITNESS WHEREOF, the parties hereto have caused this
4 Agreement to be executed on the date first hereinabove written.
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PLACENTIA UNIFIED SCHOOL DISTRIC.~~
Gi'v\l
4/9/84
By:
Date:
ANAHEIM REDEVELOPMENT AGENCY,
a public bOdy,
Date:
By:
Chairman
13 ATTEST:
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Date:
By:
Secretary
APPROVED
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Exhibit A
Description of General Projects
Fairmont. G1enknoll. and Woodsboro Elementary Schools will need
substantial upgrading to continue to adequately serve the long term needs of
east Yorba Linda- and Anaheim. Fairmont and possibly Woodsboro will require
expansion within the next four years. Woodsboro may eyen need some expansion
prior to opening the Travis Site. All three schools will need exterior and
interior expansion. refurbishment. and reconstruction within the next ten
years. These improvements are expected to be on the order of $3 million in
todays dollars. If Fairmont required expansion involving its vacant 3-acre
parcel. these project costs could escalate to $6 million.
Bernardo Yorba Junior High will require minor expansion and moderate
refurbishment within five years to continue- serving east canyon students
adequately. These improvements will cost somewhere in the neighborhood of $4
.
million. For comparison. a new. junior high cduld cost as much as $20-30
mi 11 ion.
Esperanza High will require expansion for its current 2400 capacity to
approximately 3000. There are two expansion options; first ;s closing Orchard
Elementary and remodeling it as a high school annex and the second is
constructing an additional classroom building north of the 200 building. near
Kellogg Drive. The Orchard Annex would require substantia1 renovation of the
existing facilities plus a pedestrian bridge spanning Kellogg at Glenview
Avenue. Either the annex (plus bridge) or a new classroom building would cost
approximately $5 million. An additional $3 million would be required to
......~_.c_'_.._o;F'..o. ._o~",",......."_;.",,
remodel and refurbish the shower and lockers, student lockers, shop and
specialty classrooms, etc... The total cost of expanding Esperanza under
either scenario is around S8 million. This compares to at least S30-40
million that would be needed to construct a fourth high school in east Yorba
Linda. These changes would be needed within 6-7 years and possibly sooner if
the Yorba Linda Elementary School District were to annex into the PUSD.
The district currently has some bond funds available with which to begin
construction of the Travis Site. This site will eventually serve over a third
of the east canyon area. In this way, district bond funds could be used for
necessary refurbishment projects throughout the rest of the district.
Construction costs for this site are estimated at $6 million. If sufficient
tax increment funds were not available by 1985-86, future tax revenues could
be used to augment the exhausted bond funds for various future rehab projects.
The school district also lacks the necessary funds to construct a
facility at the King Site in the foreseeable future. Some type of cooperative
agreement with the district, city, redevelopment agency, and developer may be
needed to mitigate this situation. However, at some point in time, it will
become cost effective to construct even a small facility on the King Site
rather than transport students to available space 5-10 miles to the west. The
anticipated cost at the time of construction for the entire facility may
exceed S10 million.
The District Education Center (DEC) will need expansion and refurbishment
to serve the long-term needs at the district, particularly those of the
growing eastern end. To modernize administrative and educational programs, it
will be necessary to tie our schools into the cable television systems being
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planned for this area (e.g. Yorba Linda, Placentia). The district will also
need to expand and upgrade its computer and data transmission/communications
systems before 1990. These improvements would cost approximately $5 million
and phasing would be dependent on the progress of various localities,
identified need, etc...
Our transportation department estimates that three additional larger
passenger busses would be needed to accommodate significant development in
this area within the next four years. The only service now provided is with
small, 16-passenger vans. The long term capital cost of transportation
equipment for the east canyon area is $3 million over 15 years (12 busses).
The districts operating costs will equal or exceed these capital costs.
The following table summarizes the capital improvements needed by PUSD
facilities serving east Anaheim. Also shown is the fraction of costs that can
be expected to be borne by Anaheim River Valley Redevelopment revenue.
Facility
Elementary Schools
8. Yorba Jr. High
Esperanza High
New Sites/Schools
District Office
Transportation
Total Cost
S Million
3
4
8
16
5
3
Anaheim Portion*
$ 130,000
170,000
350,000
700,000
220,000
130,000
Total
$39 Million
$1. 7 Mi 11 ion
* Estimated portion of improvements that could be financed by revenue from
River Valley Redevelopment tax increment.
~""","-...-
".."-""-"'"~-~......--
Summary of PUSD CapitQl Needs
As detailed in the preceding section, the total capital needs of the east
canyon area far outstrip any revenue that could be generated by the Anaheim
River Valley Redevelopment Project (A.R.V.R.P.). Any monies generated by the
ARVRP would therefore simply contribute at some point to these overall capital
needs. In addition, based on the expected production of increment (see
below), the availability of revenue would not likely complement the scheduling
needs of our capital improvements.
The Placentia Unified School District therefore requests these monies
under the previously outlined scope of projects since specific' projects and
costs cannot be identified at this time.
Anticipated ARVRP Revenues to PUSD.
Total
Increment
School Year
1985-86
86-87
87-88
88-89
89-90
90-91
91-9Z
92-93
93-94
94-95
95-96
96-97
97-98
98-99
99-2000
2000-2001
01-02
2002-03
PUSD
Por=t:1On
S 5,000
17,000
24,000
32,300
. 43 ,500
58,700
88,700
105,600
107,700
109,800
112,000
114,250
116,600
118,900
121,300
123,700
126,200
128, 700
1,554,000
18 years
$ 51,000
176,000
248,000
335,000
451,000
608,000
919,000
1,094,000
1,116,000
1,138,000
1,161,000
1,184,000
1,208,000
1,232,000
1,257,000
1,282,000
1,308,000
1,334,000
16,102,000
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Anaheim Redevelopment Agency
Placentia Unified School.District
FACILITIES BENEFITING FROM AGENCY ALLOCATION OF TAX INCREMENT
Map Key No.
Pacility
1
Fa i ?"IIW'Ioftt Elementary School
2
caenJcnoll Bl..-ntary School
3
. WoodIJkn-ro Elementary School
4
Bernardo Yor):)a Junior High School
5
Bsparanza High Sc:hool
6
Future Travi. Blementary. School Site
7
Puture Iting Bl~tary School Site
8
Diat:rict BducaUOD Center
...........-
D I A C a A It
or IUILDIWC AaCAS
PlOJ. 110,
tLlooOit .0110
ADDUSS
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Pt. A.ceJT 1.4. , CJ..I.I'OIl.JIA
SCHOOL ~... "GE.url~
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DIVISICII or SC1IOOL ~
CALIP'OIUfU D!PA&1MDIT or !WCAna
DIAGRAJI OF. BD'LDING AREAS
(I-Ai
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(SeA)
. PROJEcr __G:;1-E.N ~QLL Elementary School . ... EXISTINC
SQIOOL DISTRICT Placentia Unified School District . /Q BASIC PLANS
ADDRESS CilenknoU Drive L Laritridge Drive - Yorba Linda '. :1NAL PLU'(S
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DAVIS-DUHAIME ASSOCtATI
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2031 E. CERRITOS - SU
4NAUC'1~ ,..._ tCnDN'" t
EXHIBIT "cn
PUBLIC IMPROVEMENTS
Street
Improvements
Signalization
Street
Liihting
Storm
Drains
U ti.1i ti es
Grading and
Slope Landscapinr
Levees
Plood Control. Channels
Landf1Jl
Sewers
EXHIBIT "2"
Katz Hollis
~
SUMMARY REPORT PURSUANT TO SECTION 33679
of the
CALIFORNIA COMMUNITY REDEVELOPMENT LAW
PLACENTIA UNIFIED SCHOOL DISTRICT TAX INCREMENT
REIMBURSEMENT AGREEMENT
relative to the
ANAHEIM RIVER VALLEY REDEVELOPMENT PROJECT
Prepared for the
Anaheim Redevelopment Agency
by
Katz, Hollis, Coren & Associates, Inc.
February, 1984
052984
mmKMB3
Katz Hollis
I.
INTRODUCTION
Section 33679 of the California Community Redevelopment Law
(Health and Safety Code, Sections 33000, et seq.) requires a public
hearing to be held by the City Council prior to the Redevelopment Agency
committing incremental tax revenues for the purpose of paying all or
part of the value of the land for, and the cost of the installation and
construction of, any publicly owned building, other than parking facili-
ties. Prior to the public hearing, there is to be made available for
public inspection and copying a summary which must include the following:
a. Estimates of the amount of such incremental taxes pro-
posed to be used to pay for such land and construction of any publicly
owned bUilding, including interest payments:
b. The facts supporting the determinations required to be
made by the City Council pursuant to Section 33445 of the Community
Redevelopment Law: and
c.
used to pay
building.
The redevelopment purpose for which such taxes are being
for the land and construction of such publicly owned
This report provides the information required under Section
33679 of the California Community Redevelopment Law in connection with
the use of increment tax revenues to finance the construction of school
facilities for the Placentia Unified School District within proximity to
the Anaheim River Valley Redevelopment Project.
II. DESCRIPTION OF THE DEVELOPMENT
The Placentia unified School District (the "District") pro-
poses to pay a portion of the cost of construction of a number of new
buildings and refurbishment of existing structures with the tax incre-
ment funds to be allocated from the River Valley Redevelopment Project.
The specific improvements planned by the District are as follows:
(l) Fairmont Elementary School - expansion, refurbishment and
construction.
(2) Glenknoll Elementary School - exterior and interior ex-
pansion, refurbishment and reconstruction.
(3) Woodsboro Elementary School - exterior and interior ex-
pansion, refurbishment and reconstruction.
(4) Bernardo Yorba Junior High School - minor expansion and
moderate refurbishment.
Katz Hollis
(5) Experanza High School - expansion of capacity from 2,400
to 3,000 students and the refurbishment and remodeling of
existing facilities.
(6) Travis Site - the construction of a new elementary school
facility.
(7) King Site - the construction of a new elementary school
facility.
(B) District Education Center - expansion and refurbishment
in keeping with the long term needs of the District, ex-
pansion of cable television system usage and expansion
and upgrading of computer and data transmission/communi-
cation systems.
(9) Transportation - three large passenger buses due to in-
creased development in the short term with additional
buses required over the longer term.
Attachment No. I is a map depicting the location of the facil-
ities to be improved.
III. ESTIMATE OF THE TOTAL AMOUNT OF TAX INCREMENT REVENUES TO BE
USED TO PAY FOR THE IMPROVEMENTS
Exhibit A of the Agreement For Reimbursement Of Tax Increment
Funds provides the detail for the improvements herein described and the
cost estimates for each of these improvements. The District projects
costs totaling approximately $39 million. The improvements are to be
financed from a number of sources, one of which is the tax increment
funds to be received from the Anaheim Redevelopment Agency. Section 202
of the Agreement provides the determination for the amount of this an-
nual payment:
"For each fiscal year commencing in 1987-88 and continuing
through the fiscal year in which the Project is terminated
or expires, the Agency hereby agrees to pay to District a
sum equal to 9.65\ of the 'property tax revenues,' as that
term is hereinafter defined, actually received by the Agen-
cy from the incremental assessed valuation of that portion
of the project area within the District's boundaries.-
['Property tax revenues' are defined as being property
taxes allocated and paid to the Agency and legislative sup-
plements to or substitutes for property taxes.]
A map illustrating the portion of the District common to the
area of the River Valley Redevelopment Project has been included as At-
tachment No.2. Based upon the development scope permitted under the Gen-
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Katz Hollis
eral Plan of the City of Anaheim and that proposed by the current prop-
erty owner, projections of incremental tax revenues specific to the
District have been calculated. The development scenario utilized for
this analysis encompassed the following:
Office:
Industrial:
Retail :
Restaurants:
467,000 square feet
416,000 square feet
266,000 square feet
45,000 square feet
Of the total value to be added to the tax rolls as a result of
this new construction, approximately 41% is to be within the area under
the jurisdiction of the District. From 1987-88 through 2002-2003, the
District's share of total tax increment to be allocated to the Agency is
projected to increase from $10,000 to $64,000. The total reimbursement
anticipated to be received by the District over this period is $721,000.
This $721,000 is the total amount of tax revenues estimated to be used
towards the District improvements.
IV. FACTS SUPPORTING THE DETERMINATIONS REQUIRED TO BE MADE
BY THE CITY COURCIL
Section 33445 of the California Community Redevelopment Law
(CRL) permits a redevelopment agency to pay for all or part of the con-
struction of any publicly owned structures provided the city council
determines, (1) that such structures are of benefit to the redevelopment
project area or the immediate neighborhood in which the project is
located, and (2) that no other reasonable means of financing such struc-
tures are available to the community.
PROJECT BENEFIT - The nearly 1.2 million square feet of mixed-
use development anticipated within the River Valley Redevelopment Proj-
ect over the next fi ve to seven years can be expected to have some im-
pact on the local school systems. While not found by the Agency to be a
severe financial strain upon the district, some additional costs may be
experienced by the District as a result of the Project. A review of the
fiscal impact of this development has shown that greater than 3,000 per-
manent jObs would result. With these new jobs, it is expected that the
local population will grow as people demand housing in the area. Conse-
quently, new families may reside in t:he District as a result: of t:he
Project, which will further the growth pressures already being felt
within the school system.
A determination that the completion of the described school
facility improvements will be of benefit to the Project area can be made
pursuant to Section 401 of the Redevelopment Plan. Section 401 states a
number of proposals to be utilized by the Agency -to eliminate and prevent
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-.-+,.-.--.''''
KatzHollis
the spread of blight and deterioration in the Project area.- Among
these proposals is the (1) "Construction of public improvements and con-
struction of infrastructure which lack thereof has prevented develop-
ment. - As the proposed development would be inhibited by the existence
of an inadequate school system serving the families of those that would
relocate into the District, the expansion and improvement of the school
system would contribute to the redevelopment of, and elimination of
blight within, the River Valley Redevelopment Project.
Data available from the Southern California Association of
Governments and the 1980 u.s. Census permits estimates of the local fis-
cal impact upon the District. The additional jobs created by the Proj-
ect could result in 2,400 new households in the area, increasing the
population by 6,672. School age population (between the ages of 5 and
17, inclusive) resulting from this overall population growth is antici-
pated to be 1,367. Information provided by school district staff indi-
cates that a new school facility is necessary with every 1,200 addi-
tional students. Assuming the construction of such a facility would be
necessary due to the influx of new students, a school of sufficient size
to serve 1,200 students is estimated to cost $5 million in 1984 dollars.
A $5 million school facility cost equates to a capital cost of
$4,167 for every new student. Should facilities be required for the 167
students above the l,200 at the new site (through either temporary
classrooms or expansion of existing buildings), the total capital cost
for the 1,367 new students is estimated to be $5.7 million. Additional
fiscal impact upon the District due to increased operational costs would
also result from the increased enrollment. Data provided by school dis-
trict staff indicates that the current cost of education approximates
$2,417 per student annually. Revenue received by the State supplements
local revenue, resulting in approximately $2,000 per student annually
for the District in local and State sources of funds. The net impact
upon the District is $4l7 per student in operating costs annually which,
based upon the 1,367 in total new student population, equates to
$570,000 in additional current costs of education each year.
It should be noted that the new facility assumed in this dis-
cussion is not among the sites listed in the exhibit to this report.
Also, while the District currently receives an annual allocation per
student from the State for a major portion of its operating expenses,
the resources available for financing capital costs are very limited.
Consequently, the tax increment revenues allocated from the River Valley
Redevelopment Project could prove important in financing a new school
facility and increased current costs of education that could become
necessary because of the additional students indirectly generated by the
Project.
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Katz Hollis
MEANS OF FINANCING - As discussed previously, the total cost
for the improvements proposed for the existing and proposed school
facilities is approximately $39 million, $721,000 of which would be
financed by payments froll the Agency. The District has represented to
the Agency that it has no other means of financing such improvements.
While the tax increment portion of the total capital requirements is
relatively small, the method of school district financing is an impor-
tant consideration to this analysis. Schools are financed in relation
to a formula based upon average daily attendance (ADA) within individual
school districts. To the extent that local property taxes are insuffi-
cient to meet the dollar figure resulting from ADA formula, the state
allocates funds to the school district. This method of financing pro-
vides funding for the operations of the school district but does not
generate revenues sufficient to meet the longer term capital needs of a
district.
As population growth occurs and the need to build additional
facilities becomes more acute, all revenue sources must be tapped to
ensure completion of the improvements. The allocaton of the funds as a
result of the subject Agreement will assist in this occurring. Should
these funds not be so allocated, the District could be impeded from pro-
viding fully adequate facilities in the future.
v.
REDEVELOPMENT PURPOSES FOR WHICH INCREMENTAL TAX REVENUE
ARE BEING USED
The Agency proposes to eliminate and prevent the spread of
blight and deterioration in the Project area by means of a variety of
activities authorized in the Redevelopment Plan and the Community Rede-
velopment Law. There is a declaration by the State Legislature that
blighted areas constitute an injurious and inimical menace to the public
health, safety and welfare of the communities in which they exist as
well as the State as a whole. There is a further declaration that a
fundamental purpose of redevelopment is to provide an environment for
the social, economic and psychological growth and well-being of all
citizens.
Both in the planning for and implementation of redevelopment
projects, there is a recognition of the relationship of the project area
to the surrounding area and community and of surrounding area and com-
minity to the project area. In recognition of these declarations and
relationships, the agency is authorized to assist other public agencies
to remedy such conditions of public facilities as will benefit the proj-
ect area. Such benefits may be in the form of public improvements which
directly serve the project area or may be of a nature which will enhance
the agency's ability to effectively carry out the redevelopment plan.
Those improvements may be located both inside and outside of the project
area.
-5-
KatzHollis
The Agency's proposal to redevelop the Project area is direct-
ed toward private development, including primarily industrial and office
uses. A healthy and sound community environment is among the most im-
portant incentives to attract development. The environment is specific-
ally addressed in the Legislative declaration that the social, economic
and psychological enhancement of the community is a fundamental purpose
of redevelopment.
As a major public institution, the Placentia Unified School
District is a contributor to the environment of the City of Anaheim,
including the Project area. A prospective developer and the employer
who ultimately locates in the Project area makes a locational decision
based upon many factors, among which are the quality of the resident
work force and the quality of the community's educational programs and
facilities. These are important factors since employees who move to the
community in which the new buildings are to be located will appraise
such moves in terms of personal as well as business values. It has been
long recognized that comllunity schools are a primary influence in home
selection. To the extent that the instructional programs and school
facilities are of high quality, they will act as a positive influence in
locational decisions of employees, and hence, employers and developers.
There is a correlation between the quality of the District's
education programs and facilities and the area's ability to compete for
users. This can be seen by the proximity of the benefitted school dis-
trict facilities to the River Valley Redevelopment Project as shown in
Attachment No.1. The Agency's payment of tax increment revenues to the
District is in recognition of this correlation and in keeping with Sec-
tion 33401 of the Community Redevelopment Law which permits the Agency
to allocate funds to the District, in this instance to assist in the
timely completion of capital improvements which will benefit the Project
area.
The redevelopment purposes for which the tax increment funds
will be utilized can therefore be summarized as follows:
To eliminate and prevent the existence of blight by the
construction and reconstruction of District public im-
provements;
To assist the District in the cost of facilities and im-
provements outside the Project area which facilities and
improvements are of benefit to the Project area and to
the neighborhoods in which the Project is located;
To cause to be constructed and reconstructed outside of
the Project area such public improvements of the Dis-
trict as are necessary to implement the Redevelopment
Plan;
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Katz Hollis
-
To provide an environment for the social, economic and
psychological well-being of all Anaheim residents
through the construction and reconstruction of District
facilities which are of benefit to the Project area and
to neighborhoods adjacent to which the Project is
located.
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Attachment No. lA
Anaheim Redevelopment Agency
Placentia Unified School District
FACILITIES BENEFITING FROM AGENCY ALLOCATION
OF TAX INCREMENT
Map Key No.
1
2
3
4
5
6
7
8
Facility
Fairmont Elementary School
Glenknoll Elementary School
Woodsboro Elementary School
Bernardo Yorba Junior High School
Esparanza High School
Future Travis Elementary School Site
Future King Elementary School Site
District Education Center
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