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ARA1984-017RESOLUTION NO. ARA84 -17 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING A CERTAIN AGREEMENT FOR THE REIMBURSEMENT OF TAX INCREMENT FUNDS FOR THE RIVER VALLEY REDEVELOPMENT PROJECT AREA WITH PLACENTIA UNIFIED SCHOOL DISTRICT; AND MAKING CERTAIN FINDINGS WITH RESPECT THERETO WHEREAS, the Anaheim Redevelopment Agency ( "Agency "), pursuant to the provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000 et. seq. prepared and approved a redevelopment plan for a redevelopment project area known as the River Valley Redevelopment Project ( "Project "), which redevelopment plan was adopted by the City Council of the City of Anaheim on November 29, 1083; and WHEREAS, tine City Council of the City of Anaheim on November 29, 1983 adopted Ordinance No. 4463 to adopt the redevelopment plan to provide for the allocation and payment of all property taxes received from increases in the assessed value of real property within the Project area to the Agency subsequent to the adoption of the redevelopment plan for the purpose of paying any and all debts and obligations incurred by the Agency to finance the redevelopment within the Project area; and WHEREAS, the Agency has obtained and considered certain information showing that the allocation of tax increment to tAe Agency by virtue of the implementation of the redevelopment plan will cause a financial burden or detriment to the Placentia Unified School District ( "District "), whose obligation to provide certain services within the Project area will increase as a consequence of the more intensely developed Project area and the allocation of all additional property taxes attributed to the increase in the assessed value of the real property within the Project area to the Agency; and WHEREAS, the Agency has obtained and considered certain information establishing that additional educational and support facilities are beneficial to the community, who, by virtue of the implementation of the redevelopment plan will experience increases in residential and student population in the general vicinity of the Project area, and that except for certain Agency funding, said facilities could not be adequately financed; and WHEREAS, by reason of the aforesaid, Agency and District now desire to enter into an agreement providing for the payment by the Agency to the District of a portion of the property tax revenues received by the Agency from the River Valley Redevelopment Project area which would be appropriate and necessary to alleviate the financial burden and detriment caused to the District by reason of said redevelopment project, all as authorized by Section 33401 of the California Health and Safety Code; and WHEREAS, the City Council of the City of Anaheim has determined that the educational and support facilities specified in said Agreement are of benefit to the River Valley Redevelopment Project area and the immediate neighborhood in which the Project is located and thhat there is no other reasonable means available to the community to finance such facilities; and WHEREAS, this Agency held a joint public hearing with the City Council to consider the proposed Agreement, and the information contained in the summary referred to in Section 33679 of the California Health and Safety Code. NOW, THEREFORE, BE IT RESOLVED by the Anaheim Redevelopment Agency as follows: 1. The Agency hereby finds and determines that, on the basis of the facts and for the reasons set forth in Exhibit "1" (attached hereto and incorporated Therein by this reference), the River Valley Redevelopment Project will cause or has caused a financial burden or detriment to the District and that the payments set forth in the Agreement referred to in Paragraph 3 of this Resolution are necessary to alleviate the financial burden or detriment. 2. The Agency hereby finds and determines that on the basis of the facts and for the reasons set forth in the summary report, Exhibit " 2 " (attached hereto and incorporated herein by this reference), the educational and support facilities set forth in the Agreement referred to in Paragraph 3 of this Resolution are of benefit to the River Valley Redevelopment 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. 3. The Agreement for Reimbursement of "Tax Increment ("Agreement") with the Placentia Unified School District, in tae form attached hereto and incorporated herein as Exhibit "3 ", is nereby approved. 4. On the condition that all legal challenges to the River Valley Redevelopment Project be resolved, the Chairman of tae Agency is nereby aataorized and directed to execute said Agreement on oehalf of the Agency. THE FOREGOING tESOLUTION is approved and adopted by tae Anaheim Redevelopment Agency this 12th day of June , 1984. 40 CHAIRMAN ANAHEIM REDEVELOPMENT AGENCY ATTEST: \- �t�wal SECRETARY ANAHEIM REDEVELOPMEiif AGENCY 00740 EXHIBITS 1, 2, and 3 -3- STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ANAHEIM ) I, LEONORA N. SOHL, Secretary of the Anaheim Redevelopment Agency, do hereby certify that the foregoing Resolution No. ARA84 -17 was passed and adopted at a regular meeting of the Anaheim Redevelopment Agency held on the 12th day of June, 1984, by the following vote of the members thereof: AYES: AGENCY MEMBERS: Kaywood, Bay, Overholt, Pickler and Roth NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment Agency signed said Resolution on the 12th day of June, 1984. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 12th day of June, 1984. SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY (SEAL) EXHIBIT "1" The Anaheim Redevelopment Agency ( "Agency ") hereby finds and determines that the approximately 1.2 million square feet of mixed use development within the River Valley Redevelopment Project will cause the Placentia Unified School District ( "District ") additional cost it might otherwise not incur. A review of the District's projected economical effect of the Project reveals that this financial burden will be principally attributed to the creation of some 3,000 or more permanent jobs. With this increase in jobs, it is anticipated that many persons and their families will choose to relocate within the District and further contribute to the District's already present fiscal pressures. It is further determined that the improvement and expansion of the District's quality educational programs and facilities will be necessary in meeting the immediate and long term development objectives of the Project as prospective developers or employers often -time view the educational system within a particular area as a substantial factor in making their ultimate decision to locate within that area. With the development of the Project area and the anticipated growth in the District's general and student population, the District's need to tap all available revenue sources becomes necessary for the District to continue to finance quality educational programs and facilities within the District. As such, the allocation of tax increment to the District will be needed to sufficiently offset the financial burden and detriment caused by the Project. 160/30 -9 Page 1 of 1 EXHIBIT 11 2 " KatzHollis 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 Hol 1 i s 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. The redevelopment purpose for which such taxes are being used to pay for the land and construction of such publicly owned building. 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: (1) 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 Hol 1 i s (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. (8) 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. 1 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- -2- Katz Hol l is 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: 467,000 square feet Industrial: 416,000 square feet Retail: 266,000 square feet Restaurants: 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 COUNCIL 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 five 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 the District as a result of the 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 -3- Katz Hol l i s 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 1,200 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 $417 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. -4- KatzHollis ,.� 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 from 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- Katz Hol l is 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 community 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; -6- Katz Hol l is 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. -7- •• � 4'rxs�r� • ' �, 1. .�s• •: � ,.111..1, s 4� �iG O1 •r 1� •, t • ,. � �., TST � � u�..0 an ' d 1� J� r te' r- --� \ a \ \\ " f • o S'!� a,, o. �". .Ott 3 i - � • r � � 1 � � � V "r, �� „'j� � <ooNr:+ al wt �� a �� i � 4 `y1 r'. \\ +\\ „'o. tx,, a N . 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Q 1! 1,r,tiA I O]I �l i`�rn' 7� ..11 • KatzHollis Attachment No. lA Anaheim Redevelopment Agency Placentia Unified School District FACILITIES BENEFITING FROM AGENCY ALLOCATION OF TAX INCREMENT Map Key No. Facility 1 Fairmont Elementary School 2 Glenknoll Elementary School 3 Woodsboro Elementary School 4 Bernardo Yorba Junior High School 052384 mmKMB3 5 Esparanza High School 6 Future Travis Elementary School Site 7 Future King Elementary School Site 8 District Education Center ■ ice - 00 , d l: : �j \rill : ■ ■ rill. \�/ \ _rill ,rill,,■..;,,. ,..;rill ■ :: lag ��. ■■ ��► +.••ill ■■■ mag as l .. ► .4� Us Joao Is is, o s s ■- ■/• 1 • ::i•�l � 1,:: " ■ � . . 11 6 0 061 a • j:l i= is ni I N • W a a ,.,•� � Of /4 / r�•ts • i I Y r • �• i . � r i I 4c . tk d Q ' a d m �� I•ll b \ b r 2 i � L 1 - (A �. — s• v W W J J y LL O s m O = > d Z , V to CC W 0 p Y W : W pp 9 i t U O IL O = J CL = W 't < W 2 < W W ix v t J d / ,.,•� � Of /4 / r�•ts • i I Y r • �• i . � r i I 4c . tk d Q ' a d m �� I•ll b \ b r 2 i � L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 24 21 22 23 24 25 26 27 28 EXHIBIT "3" AGREEMENT FOR REIMBURSEMENT OF TAX INCREMENT FUNDS THIS AGREEMENT is made and entered into this day of , 1984 by and between the 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.' W I T N E S S E T H: I. (§ 100) RECITALS 1. The Agency is carrying out the River Valley Redevelopment Project (hereinafter the 'Project ") pursuant to 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 valuation of property within the Project Area between the assessed valuation of said property on the 1983/84 assessment rill and the assessed valuation thereon shown on each assessment roll subsequent thereto. 3. 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. - 1 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. Consultations between the Agency and Placentia District reveal that the Project, by virtue of the tax 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 the community (the 'community' as defined in the Community Redevelopment Law means the City of Anaheim). -2- i ii 7. The purpose of this Agreement is to provide for 1 appropriate payments to be made by the Agency to the Placentia 2 District in order: (1) to alleviate any financial burden or 3 detriment caused to the Placentia District by the allocation of 4 funds to the Agency from certain tax levies; (2) to assist the 5 Placentia District by paying for all or part of the cost of 6 certain Placentia District facilities which are of benefit to 7 8 the Project area or the immediate neighborhood in which the 9 Project is located and for which no other reasonable means of 10 financing is available to the community. 11 8• The Project may affect the Placentia District in that 12 the redevelopment of the Project area may result in increased 13 student enrollment within the Placentia District by reason of 14 the residential growth which will occur in the immediate 15 neighborhood of the Project area because of industrial and 16 commercial development within the Project area. 17 9. The parties herein agree that the Placentia District's 18 potential financial detriment shall be offset by the allocated 19 amounts set forth herein. 20 NOW, THEREFORE, for and in consideration of the foregoing 21 premises, and for their mutual advantage and concern, the 22 parties do hereby agree as follows: 23 (S 200) PAYMENT TO THE PLACENTIA DISTRICT 24 A. (S 201) Payment for Facilities 25 The continued availability of quality educational 26 opportunities in and around the Project area is an important 27 factor (1) to serve students living in the immediate 28 neighborhood in which the Project is located, and (2) to -3- 11 2 3 4 5''. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 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. B. (S 202) Amount of Payment For fiscal year 1987 -88 through 2002 -2003, both inclusive, I the Agency hereby agrees to pay to Placentia District a sum equal to 9.658 of the 'property tax revenues', as that term is hereinafter defined, actually received by the Agency from the -4- �i I 1 incremental assessed valuation of that portion of the Project 0 2 area within the Placentia District for each such fiscal year. 3 As used in this Agreement, the term 'property tax revenues' 4 shall only include: (1) all ad valorem property taxes 5 allocated and paid to the Agency pursuant to Article XVI, 6 Section 16 of the California Constitution and Health and Safety 7 Code Section 33670, et seq. and (2) identifiable California 8 State legislative supplements to or substitutes for ad valorem 9 property tax. Provided, however, by way of example and not of 10 limitation, that the term 'property tax revenues' as used 11 herein shall not include: 12 (1) Revenues, funds, monies, awards, loans, grants or 13 credits whose source, directly or indirectly, is 14 the Federal Government; nor, 15 (2) Any monies or funds received from any other 16 public source (State, County, Municipal, or 17 otherwise) as a result of any loan, grant, or 18 award, or similar payment; nor 19 (3) Any public funds, or assessment, received by the 20 Agency upon a condition, limitation or 21 restriction that precludes use of such funds for 22 payment to the Placentia District pursuant to 23 this Agreement; nor 24 (4) Proceeds from disposition of any real or personal 25 property; nor 26 (5) Proceeds from the sale of bonds or loan 27 agreements. 28 -5- 1j i C. (S 203) Limitation on Payments 2 Notwithstanding any other provision of this Agreement to 3 the contrary, the Agency's obligation to make payments to the 4 Placentia District under, and by reason of this Agreement, 5 shall be limited in any fiscal year to the amount of property 6 tax revenues paid to the Agency which would not have been so 7 paid to the Agency, but for the existence of the Placentia 8 District and which otherwise would have been allocated to the 9 Placentia District. Such limitation on the Agency's obligation 10 shall be deemed to be the sum of the amounts paid to the Agency 11 in any fiscal year: (1) from the levy of all Placentia 12 District tax rates on the incremental assessed valuation of the 13 Project within the Placentia District for such fiscal year; (2) 14 from the Placentia District's portion of any property tax rate 15 levied by any other public agency on behalf or to the benefit 16 of the Placentia District (including, without limitation, the 17 Placentia District's portion of the property tax rate currently 18 authorized to be levied by the County of Orange under Revenue 19 and Taxation Code Section 33(b)), with such rate being applied 20 to the incremental assessed valuation of the Project within the 21 Placentia District for such fiscal year; and (3) from the 22 Placentia District's portion of any identifiable legislative 23 supplements to, or substitutes for, ad valorem property tax on 24 the incremental assessed valuation of the Project within the 25 Placentia District (as set forth in Section 202 hereof). 26 Provided further, that the Agency shall have no obligation 27 to make payments to the Placentia District in any fiscal year 28 to the extent that the Placentia District is legally precluded under the Gann Initiative from appropriating such revenues. -6- li 2! 3'' 4 1 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 D. (§ 204) Pavment Procedure Within ninety (90) days after the date of this Agreement, the Placentia District shall establish a special fund entitled 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. E. (§ 205) Income from Fund -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. F. (5 206) Use of Funds 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 "A,' 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� 1 III. (§ 300) ADDITIONAL TERMS AND PROVISIONS 2 The payments to the Placentia District of the amounts set 3 forth in Section 202 are supported by, limited by, and /or 4 subject to the following additional terms and provisions: 5 A. (S 301) Agency Indebtedness 6 The obligations of the Agency under this Agreement are 7 indebtednesses of the Agency for the purposes of carrying out 8 the Redevelopment Plan for the Project area, which 9 indebtednesses are payable out of and only out of taxes levied 10 by local taxing agencies in the Project area and paid to the 11 Agency under Section 33670 of the Health and Safety Code. 12 B. (§ 302) Subordination; Deferral 13 1. (S 303) Subordination 14 In the event the Agency desires to issue bonds, notes, or 15 other instruments of indebtedness of the Agency to pay for the 16 public improvements described in Exhibit 'C" (which is attached 17 hereto and incorporated herein by the reference), including, 18 all direct and indirect outlays necessary or appropriate for 19 effectuating these public improvements, then the indebtedness 20 of the Agency under this Agreement shall be deemed not to be a 21 first pledge of property tax revenues received by the Agency 22 pursuant to Health and Safety Code Section 33670; and the 2 indebtednesses of the Agency under this Agreement shall be 24 subordinate to any pledge of property tax revenues to such bond 25 holders or such holders of other instruments of indebtedness. 26 This subordination includes any amounts the Agency is required 27 by law to allocate from tax increment funds for specified 28 purposes, such as low and moderate income housing. -9- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 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. -10- 1 C. (S 305) Indemnify; Insurance 2 Placentia District agrees to indemnify and hold the Agency 3 and the City of Anaheim harmless from all claims, expenses, 4 damages and liability for any injury or damage to persons or 5 property arising from the construction or operation of any 6 building, facility, structure, or other improvement designated 7 for Agency financial assistance under this Agreement and made 8 against Agency and /or the City of Anaheim as a result of the 9 payment of funds or other performance under the Agreement. If 10 the Placentia District, or any agent or contractor of the 11 Placentia District, carries liability insurance with respect to 12 the Placentia District facilities which are the subject of this 13 Agreement, Placentia District agrees to name or cause to be 14 named the Agency and the City as additional insureds to the 15 extent of the Agency and City's performance hereunder. 16 D. (§ 306) Legal Fees 17 In the event either party to this Agreement is required to 18 institute litigation to enforce its legal rights arising out of 19 this Agreement, the prevailing party in such action shall be 20 entitled, in addition to its other relief, to recover 21 reasonable attorney fees. 22 E. (S 307) Entire Agreement 23 This Agreement constitutes the entire understanding and 24 agreement between the parties and supersedes all previous 25 negotiations between them. It is the intent of the Agency and 26 Placentia District that the payments herein provided constitute 27 a full, complete, fair and equitable adjustment for all 28 financial and other impacts which have or may result during the -11- 1I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 term of this Agreement from the Project or any amendment theret^ which does not add to the area within the Placentia District, and for which Agency may make payments to Placentia District under the California Community Redevelopment Law, Health and Safety Code Section 33000, et seg. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first hereinabove written. Date : 4/9/84 Date: PLACENTIA UNIFIED SCHOOL DI TRICT By ith Lar' ,Superintendent ANAHEIM REDEVELOPMENT AGENCY, a public body, By: Chairman ATTEST: Date: By. Secretary APPROVED AS TO FORM: Date: EB:dw 0075C -12- Exhibit A De scription of General Projects Fairmont, Glenknoll, and Woodsboro Elementary Schools will need upgrading to continue to adequately serve the long term needs of P east Yorba Linda and Anaheim. Fairmont and possibly Woodsboro will require Woodsboro may even need some expansion expansion within the next four years. prior to opening the Travis Site. All three schools will need exterior and interior expansion, refurbishment, and reconstruction within the next ten y ears. These improvements are expected to be on the order of $3 million in toda y s.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 stddents adequately. . These improvements will cost somewhere in the neighborhood of $4 million. For comparison, a new junior high could cost as much as $20 -30 million. Esperanza High will require expansion for its current 2400 capacity to approximately 3000. There are two expansion options; first is 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 substantial 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 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 $8 million. This compares to at least $30 -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 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 $10 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 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. Facilit S * Estimated portion of improvements that could be financed by revenue from River Valley Redevelopment tax increment. Tota lion Anaheim Portion —"—"� Elementary Schools 3 $ 130,000 B. Yorba Jr. High 4 170,000 Esperanza High 8 350,000 New Sites /Schools 16 700,000 District Office 5 220,000 Transportation 3 130,000 Total $39 Million $1.7 Million * Estimated portion of improvements that could be financed by revenue from River Valley Redevelopment tax increment. Summary of PUSD Capitol 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. 18 years 16,102,000 1,554,000 Total PUSD School Year Increment Portion 1985 -86 $ 51,000 17,0000 86 -87 87 -88 176,000 248,000 24,000 88 -89 335,000 32,300 89 -90 90 -91 451,000 608,000 43,500 58,700 91 -92 92 -93 919,000 1,094,000 88,700 105,600 93 -94 1,116,000 107,700 94 -95 1,138,000 109,800 95 -96 96 -97 1,161,000 1,184,000 112,000 114,250 97 -98 1,208,000 116,600 98 -99 1,232,000 118,900 99 -2000 1,257,000 121,300 2000 -2001 1,282,000 1,308,000 123,700 126,200 01 -02 2002 -03 1,334,000 128,700 18 years 16,102,000 1,554,000 ��. i 1 „M IL • •, _.._ I • ti •� �\ • �^ 1 •ate, p lat ^ :J �•• 1 • I�.Y � t /.•.: ti•/• •' 9. .w � p � � ~r �' - • � 1 � r s \ `. \ „ �:. j !`! 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"r a .�6 S • • 1j l Ai .�:.: ..... r i •`i ..., ? � 7�� w - -- — ... ,r � s- � - m 3 de # 'IT 36 r •. � � - � - j •� ~ q ! . . � • _ ` _ � <...srwe � F��• ` -�y �7J �� ' ,�s e Q • . r T ' .c_ �� • • f 1 r y n ,_ ' r `� t• +il }� '! a _�_ 1 yJ • a• � -.. Q .•! J _ 1�•. ? 1yO r..r, ••�•..• _ to Anaheim Redevelopment Agency Placentia Unified School District FACILITIES BENEFITING FROM AGENCY ALLOCATION OF TAX INCREMENT 0 Map Key NO. 1 2 3 4 5 6 7 8 Facili F airmon t Elementary School Glenlaioll 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 pr.:jed: address: district: ti:—%W I O t c \L \ C- �A1 RNtOrl�" EL.ENSE'�r�� S C �IOd.. 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Z D.%TF. ! . 0) IL C IL �� Vr' . fir -' •�--• �-•, '• - � '� -�-/• Of, IV - _ __ - -- - -: J /�.: � � ��•. / —� � W • a IL I di as f - LU / � project: Qtt.C'J DtZ►VE Et.EME►.1 =��`�' SGaQGL exist bldgs sf basic plans sf CZ 7J WT address: C GL►.S1Z' DQIVE, PL-&b Ei.! ► 1,d,Q�01.1�= final plans sf district: Pt- IC=s'' 1 AC-7 .dGc� 42o i . a �o. �'► � v 1 4 (� \ Tt}rtF b cr?Zi►.�1GL.E r *• 7 1 a � � ► °c - ��wc r • � r J PLAY 4-e • above is measured in occardonce with art icle 2022 sub. chapnw H, title 5, colifo �nistrati • , / - 1 J / B i b t u r o c fc s l l• r b r a e a n d • s s e c i• t• s date ARC"Iftcrs 1550 bayside drive corona del mar colif. or 3 -0300 sheet D I A G R A M O T a U I L D I A G A t t A S EXISTING (1 -I _ ❑ BASIC PLANS (2 -4 C l f o t ❑ TIjAL PLANS (3 raw. 140, , ADDRESS iE0 SCHOOL DISTRIC L W 0041 E3 0 ft0 EEME SCHOOL It. 1.GEUT1� U►1� �►t E PL�.�1 N �R i � Sao SEE SHEET S Fog AREA 4U MMAKY Mk4orgr wALL s-- -� Cf mtj L19K Fake �. ..,�. `7; - fir.! "s'.'. . . - - .Ic. � � Y ti • � r �''L �`l ` Z . .` - = i "' Vii � �j� 4 ` Z i r►!i.{ " `w 1 v �i0ltNl�crs�i. Yst'i�ilVD ' i 7 ZI WI 7) H M 0 O O Above is in caap 1 iancs with - (5 -7L S�tEEZ, =_ or 5 m Article 2022. lb ChaYptaT r3 DIVISION OF SCHOOL PLAM 5 Calif. DistTation Code ARCHITECT CALIrM DEP JL gT MENT OF EDUCA �i0ltNl�crs�i. Yst'i�ilVD ' i 7 ZI WI 7) H M 0 O O Above is in caap 1 iancs with - (5 -7L S�tEEZ, =_ or 5 m Article 2022. lb ChaYptaT r3 DIVISION OF SCHOOL PLAM 5 Calif. DistTation Code ARCHITECT CALIrM DEP JL gT MENT OF EDUCA ' a. t !4 de .0"T —! 4� t t t - - s,E1t•A�c� Ica v 1 1920 5- - rU¢F - iar�^P WO .} ay+' " NOTE SEE SHEE 17 F OK EXl`' t'1v CCr AREA S UM MARY YOR�A JK,. HIC SCHOOL. — PLACFN��A CAi. � PL-A%CENTIA UNIFIED SCHOOL O'5 ICT D n Above is in camp 1 iance vi th DAZE 6, 1 - 7 rj- Sgt I OF 17 SHE, Article 2022. Sub Chapter 8 -'ilo Title Calif. Administration Code 3 DIVISION OF SCHOOL PLANN' •, y• 'Y-- '�� t� �• <%^ ARCHITECT CALIFORNIA DEPARTMENT OF EDUCAT 1 F" Up i Project: ES�EZANi'_A WCZA 3C.NOOL. PHASrc =2 address to30 N. KirLLluG DZ)V district: PL b c r_jx7 j N U vi m is 0 "}•I Cv l� O ► ST: t :•T _ Aj4A. m CALIF. ■ exist bldgs ❑ basic plans ❑ final plans A 12 E4 .TL,6U LATICt-! �;'•� r � . 1dZF�t; SVMM dP OGG t r1 . • ! 2 t Q LD6. r+` r . PLL� Ft ELD'S pDtTtt3K ! _ � i �.' ►s -- �GOt_ � -Des• �' � Tj(J'�62� � - J 3 SLOG 5 CAL` r- - t��K � • �,�,,;,� ; . t ^i - �-- NEW tau. t 7 �� 15r. Go ms's !!;� iii. -- ••. -. -,' ` .,.. PAR K 1 G �"?S AOCt•►Gal . �—_-� 1 pr' t r'JVED "20 'y � ZI 1 T c 3 5 r 1 DATES Pt•sASE S LONSTtZIJCTICA! co�5�¢ssc; tcH •�..• to d Iw eccwrdwws• w ith wrtici• 2022. swi. ciw'twr IL title S. c�llfwrwiw adiwtwlctrwt'�.t shoe a dote 17 .1 (05� 'i0 �� -« j- n��7;�� ,�,-- ,ter- -� i :•_ � ....�►•�itoCLS Pi�nr praject: address: F'L Za ` f 4^.i FOi2,' -11A district: FL.AzehrrlA 11tv1�1� '- 'Rte• FV"fUR� pUtt,atN6�, � ,. R.ANT�RS � yYALKS - �. e' i FU'TUKr rAYL NCO _ 0 exist bldg: sp ❑ basic plans sp [•; final plans sp ��_ � : = x Fob • _ . 1 �G. r- FLO�►p - f pi-ru" PA icN6 0 24 �P�S m pNae-ze 2 : r e above Is *wcwr*d iw wcc*rdwws* with wrticl* 2022, swb. cwwPt*r 1. tiff* S. California administrative c� shoe 1 of da» iv architscta pfanna m ro I wiliia bluck S. psr'Cr+er^s - Q73 - Q: tO''1'O Oa,Ya erg.• rear• / ow��IOr -n.• 5 ! ea�*pr+on• 71a / oor•ona dor 9262 EXHIBIT "C" PUBLIC IMPROVEMENTS Street Improvements Signalization Street Light Storm Drains Utilities Grading and Slope Landscaping Levees Flood Control Channels Landfill Sewers