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ARA1984-018RESOLUTION NO. ARA84 -18 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING A CERTAIN AGREEMENT FOR THE RIVER VALLEY REDEVELOPMENT PROJECT AREA WITH ORANGE 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. se q.) 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, 1983; and WHEREAS, the 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 the Agency by virtue of the implementation of the redevelopment plan will cause a financial burden or detriment to the Orange 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 that 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 11 1" (attached hereto and incorporated herein 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 11 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 (River Valley Redevelopment Project - "Agreement ") with the Orange Unified School District, in the form attached hereto and incorporated herein as Ex;'iibit 11 is hereby approved. -2- 4. Tne Chairman of the Agency is hereby authorized and directed to execute said Agreement on behalf of tine Agency. THE FOREGOING RESOLUTION is approved and adopted the Anaheim Redevelopment Agency this 12th day of .Tune 1984. 40004W 400 �-ZA W� CHAIRMAN Ai4AHEIM REDEVELOPMENT AGENCY ATTEST: SECRETARY ANAHEL4 REDEVELOPMENT AGENCY 00760 EXHIBITS 1,2, and 3 �y -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 -18 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 Orange 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 -19 Page 1 of 1 EXHIBIT "2" KatzHollis SUMMARY REPORT PURSUANT TO SECTION 33679 of the CALIFORNIA COMMUNITY REDEVELOPMENT LAW ORANGE 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 KatzHollis 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 Orange Unified School District within proximity to the Anaheim River Valley Redevelopment Project. II. DESCRIPTION OF THE DEVELOPMENT The Orange Unified School District (the "District ") proposes to pay a portion of the cost of construction of a number of new build- ings and refurbishment of existing structures with the tax increment funds to be allocated from the River Valley Redevelopment Project. The improvements to be made to existing facilities will include the upgrad- ing or replacements of building components and encompass the following: roofing, asphalt paving, painting, floor covering, plumbing, electrical and communication systems. The acquisition and installation of portable classrooms would also be a part of these improvements. The existing facilities which will benefit from the implementation of the development program are: - Anaheim Hills Elementary School - Crescent Elementary School - Imperial Elementary School - Nohl Elementary School - Riverdale Elementary School Katz Hof 1 is - E1 Rancho Junior High School - Vista Del Rio Junior High School - Canyon High School - Canyon Hills (TMR) School - O.U.S.D. District Office - M.O.T. Facility (Maintenance, Operations & Transportation) Attachment No. 1 is an area map depicting the location of these facilities in relation to the Project area. Not shown on this map are one high school, three junior high schools and seven elementary schools to be constructed some time in the future which are also antici- pated to serve the Project area. 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 $7 million for the existing facilities and an additional $77.4 million for those facilities needed in the future. 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 Rede- velopment Agency. Section 202 of the Agreement provides the determina- tion for the amount of this annual 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 Attachment No. 2. Based upon the development scope permitted under the General Plan of the City of Anaheim and that proposed by the current property 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 -2- Katz Hol l i s Of the total value to be added to the tax rolls as a result of this new construction, approximately 59% 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 $14,000 to $92,000. The total reimbursement anticipated to be received by the District over this period is $1,038,000. This $1,038,000 is the total amount of tax revenues esti- mated 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 pre- vent 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. -3- Katz Hol 1 i s 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. MEANS OF FINANCING - As discussed previously, the total cost for the improvements proposed for the existing and proposed school facilities is approximately $84.4 million, $1,038,000 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 al- -4- Katz Hol l is -- locates funds to the school district. This method of financing provides 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. 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 Orange Unified School Dis- trict is a contributor to the environment of the City of Anaheim, includ- -5- KatzHollis ing 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 facil- ities. These are important factors since employees who move to the com- munity 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 selec- tion. To the extent that the instructional programs and school facili- ties are of high quality, they will act as a positive influence in loca- tional 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; 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. -6- 0 Tm Z C W C / C V H Q 0 Z � F LL W W W J � W J M Co > a _W W W F - 2 J N G. V O Q W W o Z o Z W N Q � 0 a O Z C I E t V W r a m m N E l r �� KatzHollis Attachment No. lA Anaheim Redevelopment Agency Orange Unified School District FACILITIES BENEFITING FROM AGENCY ALLOCATION OF TAX INCREMENT Map Key No. Facility 1 Anaheim Hills Elementary School 2 Crescent Elementary School 3 Imperial Elementary School 4 Nohl Canyon Elementary School 5 Riverdale Elementary School 6 E1 Del Rio Junior High School 7 Vista Del Rio Junior High School 8 Canyon High School 9 Canyon Hills (TMR) School 10 O.U.S.D. District Office 11 M.O.T. Facility 020884 :..........: nt : r,; ....... ...... ::::::::::::::::::::::::: \: . . ? \ i .. ... .... ::� .... .::::::: .:'. *� :::'r .: zy .; . \ yJ �• •• :t r , \ .•. O-, cm • �- O o J J O ,+ �� 0 , o U. O > I L „ Z U W Z / •'/ t �. W — m � o a • V LL J / r ^rte•• . ....... ^ d : is ..... ................ Q w;.:::......::::... / �2 O :..........: nt : r,; ....... ...... ::::::::::::::::::::::::: \: . . ? \ i .. ... .... ::� .... .::::::: .:'. *� :::'r .: zy .; . \ yJ �• •• :t r , \ .•. O-, 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 EXHIBIT "3" AGREEMENT (River Valley Redevelopment Project) THIS AGREEMENT is made and entered into this day of , 198_ by and between the ANAHEIM REDEVELOPMENT AGENCY, a public body, corporate and politic, hereinafter referred to as "AGENCY," A N D ORANGE UNIFIED SCHOOL DISTRICT, hereinafter referred to as "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 roll 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 District. 4. Consultations between the Agency and the District reveal that the Project, by virtue of the tax allocation - 1 - 1`R provision of the Redevelopment Plan, may have certain adverse if 2�! fiscal impacts on the District, depriving it of tax revenues �i 3i and advantages otherwise available to it. g 4!! 5. Moreover, the continued implementation of the i� 5`f Redevelopment Plan will contribute to the need to attract new 6�1 residents to the immediate neighborhood of the Project area to 71 work in the industrial and commercial establishments which will 8 be developed in the Project area. Such increase in residential 9 population will result in an increase in student enrollment in 10 the District which will in turn contribute to the District's 11 need for new and improved educational and support facilities of 12 various types. The continued availability of quality 13 educational opportunities in and around the Project area is an 14 important factor (1) to serve students living in the immediate 15 neighborhood in which the Project is located, and (2) to 16 attract additional private investment into the Project area for 17 development and thus assist in the implementation of the 18 Redevelopment Plan. 19 6. The Agency is authorized by Section 33401 of the 20 Health and Safety Code to compensate affected taxing entities, 21 including the District, for any amounts of money which the 22 Agency determines are appropriate to alleviate any financial 23 burden or detriment caused by the Redevelopment Project. 24 7. In addition, the Agency is authorized by Section 33445 25 of the Health and Safety Code, with the consent of the City 26 Council of the City of Anaheim, to pay all or part of the value 27 of the land and the cost of the installation and construction 28 of any building, facility, structure, or other improvement 1 -2- I 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 (hereinafter sometimes referred to as the District 'facilities'), owned or to be owned by the 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) . 8. The purpose of this Agreement is to provide for appropriate payments to be made by the Agency to the District in order: (1) to alleviate any financial burden or detriment caused to the District by the allocation of funds to the Agency from certain tax levies; and (2) to assist the District by paying for all or part of the cost of certain 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. NOW, THEREFORE, in consideration of the foregoing, and for their mutual advantage and concern, the parties do hereby agree as follows: II. (§ 200) PAYMENT TO THE DISTRICT A. (§ 201) Payment for Facilities The City and Agency have found by resolutions that the facilities listed and described in Exhibit "A" and located -3- iv generally as shown in Exhibit "B' (both of which are attached hereto and incorporated herein by this reference) will benefit 2 3 the Project area and the immediate neighborhood in which the Project is located and that no other reasonable means of 4 5 financing such facilities is available to the community. The 6 Agency and the District desire to have the Agency provide financial assistance to the District for the purchase of land 7 and the construction and installation of those District 8 facilities listed in Exhibit 'A' in the manner set forth in 9 10 Sections 202 -208. B. (§ 202) Amount of Payment 11 12 For each fiscal year commencing in 1987 -88 and continuing 13 through the fiscal year in which the Project is terminated or 14 expires, the Agency hereby agrees to pay to District a sum 15 equal to 9.65% of the "property tax revenues', as that term is 16 hereinafter defined, actually received by the Agency from the 17 incremental assessed valuation of that portion of the Project 18 area within the District's boundaries. As used in this 19 Agreement, the term 'property tax revenues" shall only 20 include: (1) all ad valorem property taxes allocated and paid 21 to the Agency pursuant to Article XVI, Section 16 of the 22 California Constitution and health and Safety Code Section 23 33670, et se g., and (2) identifiable California State 24 legislative supplements to or substitutes for ad valorem 25 property tax. Provided, however, by way of example and not of 26 limitation, that the term "property tax revenues' as used 27 herein shall not include: 29 / -4- 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 (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 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. (6) Tax revenues received by the Agency as a result of taxes levied to retire voter approved indebtedness. Provided further, that nothing in this Agreement shall be deemed to limit the City's or Agency's right to terminate the Project earlier than the date set forth in the Redevelopment Plan adopted in Ordinance No. 4463 so long as all accrued indebtedness to the District has been paid prior to termination. C. (S 203) Limitation on Payments Notwithstanding any other provision of this Agreement to the contrary, the Agency's obligation to make payments to the District pursuant to this Agreement shall be limited in any -5- i , �j 1 fiscal year to the amount of property tax revenues paid to the 2 Agency which would have been paid to the District, but for the 3 existence of the Project. Such limitation on the Agency's 4 obligation shall be deemed to be the sum of the amounts paid to 5 the Agency in any fiscal year: (1) from the levy of all 6 District tax rates on the incremental assessed valuation of 7 that portion of the Project area within the District's 8 boundaries for such fiscal year; (2) from the District's 9 portion of any property tax rate levied by any other public 10 agency on behalf or to the benefit of the District (including, 11 without limitation, the District's portion of the property tax i2 rate currently authorized to be levied by the County of Orange 13 under Revenue and Taxation Code Section 93(b)), with such rate 14 being applied to the incremental assessed valuation of that 15 portion of the Project area within the District's boundaries 16 for such fiscal year; and (3) from the District's portion of 17 any identifiable legislative supplements to, or substitutes 18 for, ad valorem property tax on the incremental assessed 19 valuation of that portion of the Project area within the 20 District's boundaries. 21 Provided further, that the Agency shall have no obligation 22 to make payments to the District in any fiscal year to the 23 extent that the District is legally precluded under Article 24 XIII.B of the California Constitution from appropriating such 25 revenues. 26 D. (S 204) Payment Procedure 27 On or before July 31, 1988, the District shall establish a 28 special fund entitled the 'River Valley Facilities Fund* -6- ii i 1 `1(hereinafter the 'Fund'). The District shall credit to the i� i 21 Fund any payments received from the Agency pursuant to Section 3� 202. Commencing with fiscal year 1987 -1988 and annually 4 thereafter, through the fiscal year in which the Project is 5 terminated or expires, the Agency shall pay to the District on 6 July 31 following such fiscal year 9.65% of the property tax 7 revenues generated from that portion of the Project area within 8 the District's boundaries actually allocated and paid to the 9 Agency for such preceding fiscal year; and, thereafter, 9.65% 10 of any other property tax revenues paid to the Agency from said 11 portion of the Project area for such preceding fiscal year 12 within 30 days after the same have been actually received by 13 Agency. For purposes of this Agreement, the fiscal year shall 14 run from July 1 to June 30. 15 In the event Agency, after payment to the District as set 16 forth above, shall be required to refund or return any property 17 tax revenues from which the District's payments were derived or i8 suffer an offset or credit against future property tax revenues 19 on account thereof, the District shall refund, return or allow 20 a credit (whichever alternative the Agency selects to the 21 extent the District has uncommitted revenues in the Fund) to 22 Agency in the amount of 9.658 thereof. To the extent the 23 District is unable to refund amounts due, such amounts shall be 24 deducted from future years payments by the Agency to the 25 District. 26 E. (§ 205) Income from Fund 27 All income, whether by interest or otherwise, earned by the 28 Fund shall be the property of the District and shall be used -7- 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', for the same purposes as the principal pursuant to this Agreement. F. (S 206) Use of Funds The 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 District buildings, facilities, structures, and other improvements listed in Exhibit 'A,' or such other District facilities as the City and Agency may hereafter approve with appropriate findings by resolution pursuant to the Community Redevelopment Law. The District agrees to provide to the Agency not later than September 15 of each fiscal year during the term of the Redevelopment Plan an accounting of expenditures made and liabilities incurred during the preceding fiscal year with respect to funds paid to the District pursuant to this Agreement. Said accounting shall specify the amounts spent or encumbered for the respective 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. G. (S 207) Subordination Notwithstanding any other provision of this Agreement to the contrary, the District's right to payment from the Agency under Article II of this Agreement in and for any fiscal year shall be subordinated to: -8- 1 I� ( 11 The rights of the holder or holders of any bonds, 2 notes, or other bona fide instruments of 3 indebtedness of the Agency issued to pay for 4 those types of public improvement projects within 5 or outside the Project area specifically listed 6 in Exhibit 'C' (which is attached hereto and 7 incorporated herein by this reference), but with 8 respect to such improvements outside the Project 9 area, only to the extent the cost thereof does 10 not exceed an amount equal to ten percent (10 %) 11 of the cost of the improvements within the 12 Project area, and 13 (2) All other costs and expenses reasonably incurred 14 by the Agency in furtherance of the public 15 improvement projects described in paragraph (1) 16 above. 17 H. (S 208) Deferral and Discharge of Payment obligation - - 18 If, after payment by the Agency of all priority 19 indebtedness referred to in Section 207 (including without 20 limitation all interest, principal, reserve requirements and 21 similar obligations), the Agency has insufficient property tax 22 revenues remaining to pay to the District its full 9.65% share 23 thereof, then the unpaid balance shall be cumulated from year 24 to year (without interest) and shall be paid from the next 25 available funds in succeeding fiscal years. In the event that 26 tax increment revenues received by the Agency in any fiscal 27 year are insufficient to pay in full competing claims of the 28 District and other taxing agencies to which the Agency has -9- I agreed to make the payments authorized by Section 33401 and/or i i 2'1 Section 33445 of the California Community Redevelopment Law, i 3 ! then the Agency shall pay to the District for the applicable 4 fiscal year an amount equal to the total tax increment funds 5 available for payment to all such taxing agencies, multiplied 6 by a fraction, the numerator of which is the outstanding balance then owed to the District hereunder and the denominator 8 of which is the outstanding balance then owed to all such 9 taxing agencies (including the District). 10 Upon the termination or expiration of the Redevelopment 11 Plan, any remaining balance owed by the Agency to the District 12 shall be forgiven. 13 III. (§ 300) ADDITIONAL TERMS AND PROVISIONS 14 A. (S 301) Renegotiation of Payment Obligation 15 In the event that, in any future fiscal year(s) during the 16 term of this Agreement, either (1) the current system of state 17 school district financing changes such that the District is 18 adversely affected by the allocation and payment to the Agency 19 of property tax revenues which, but for the adoption of the 20 Redevelopment Plan, would have been paid to the District, or 21 (2) the current system of state tax increment financing changes 22 such that the Agency is adversely affected by payment to the 23 District pursuant to this Agreement, the Agency and District 24 agree to negotiate in good faith regarding an equitable 25 adjustment of the parties' obligations under this Agreement. 26 B. (§ 302) Agency Indebtedness 27 The obligations of the Agency under this Agreement 28 constitute an indebtedness of the Agency for the purposes of -10- carrying out the Redevelopment Plan for the Project area, which 2 indebtedness is payable out of and only cut of taxes levied by 3 local taxing agencies in the Project area and paid to the 4 Agency under Section 33670 of the Health and Safety Code. 5 C. (S 303) Indemnity; Insurance 6 District agrees to indemnify and hold the Agency and the 7 City of Anaheim harmless from all claims, expenses, damages and 8 liability for any injury or damage to persons or property 9 arising from the construction or operation of any building, 10 facility, structure, or other improvement designated for Agency 11 financial assistance under this Agreement and made against 12 Agency and /or the City of Anaheim as a result of the payment of 13 funds or other performance under the Agreement. 14 D. (S 306) Legal Fees 15 In the event either party to this Agreement is required to 16 institute litigation to enforce its legal rights arising out of 17 this Agreement, the prevailing party in such action shall be 18 entitled, in addition to its other relief, to recover 19 reasonable attorney fees. 20 E. (S 305) Entire Agreement 21 This Agreement constitutes the entire understanding and 22 agreement between the parties and supersedes all previous 23 negotiations between them. It is the intent of the Agency and 24 District that the payments herein provided constitute a full, 25 complete, fair and equitable adjustment for all financial and 26 other impacts which have resulted or may result during the term 2 7 7 of this Agreement from the Project or any amendment thereto 28 which does not add to the area within the District, and for - 11 - 1 2 3 4 5 6 7 8 9 10 12' 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 which Agency may make payments to District under the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq. F. (S 306) Dismissal of Action District has filed a legal action challenging the validity of the adoption of the River Valley Redevelopment Project, among other things: Case No. 42 -07 -06 Superior Court of the State of California, County of Orange. District agrees to dismiss such action. This Agreement shall only become effective if and when such action is dismissed as to all parties. If the action has not been dismissed as to all parties within fifteen (15) days after execution of this Agreement by the Agency, the Agency may terminate this Agreement by written notice to the District. I I/ -12- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 29'' 25 26 27, 28' IN WITNESS WHEREOF, the parties hereto have caused this Agret"ent to be executed on the date first hereinabove written. Date : April 5. 1984 Date: ORANGE UNIFIED SCHOOL DISTRICT By: ANAHEIM REDEVELOPMENT AGENCY, a public body, By. Chairman ATTEST: Date: By �Y� 1W 4^1 Secretary APPROVED AS TO FORM: w /SER, /E'/gNle 6444 -1414 0073C -13- EXHIBIT "A" ORANGE UNIFIED SCHOOL DISTRICT OUTLAY PROJECTS SANTA ANA CANYON AREA - FACILITY /EXISTING Anaheim Hills Elementary School, 6450 E. Serrano, Anaheim Crescent Elementary School, 5125 Gerda Drive, Anaheim Imperial Elementary School, 400 S. Imperial, Anaheim Nohl Canyon Elementary School, 4100 Nohl Ranch Road, Anaheim Riverdale Elementary School, 4540 Riverdale, Anaheim El Rancho Junior High School, 181 S. Del Giorgio Drive, Anaheim Vista del Rio Junior High School, 5001 Gerda Drive, Anaheim Canyon High School, 220 S. Imperial Highway, Anaheim Canyon Hills (TMR) School, 260 S. Imperial Highway, Anaheim O.U.S.D. District Office M.O.T. Facility (Maintenance, Operations & Transportation) DESCRIPTION Work included in these facilities would consist of upgrading of major building components, and /or replacement thereof, including, but not limited to, the following: roofing, asphalt paving, communications systems, painting, floor covering, plumbing and electrical. Also included would be the acquisition and installation of portable class- rooms. ESTIMATED COST $7,000,000. BENEFIT TO THE PROJECT AREA AND IMMEDIATE NEIGHBORHOOD These facilities will serve the project area and the immediate neighbor- hood at all grade levels. They will provide space for many years to accommodate the increased student enrollment brought about by the redevel- opment of the project area while permanent sites are acquired and new schools are planned and built to serve the area. FACILITY /NEEDED One (1) high school DESCRIPTION Acquire 40 acres of property Construct a 155,000 sq. ft. facility EXHIBIT "A" • (Continued) ESTIMATED COST $21,175,000. FACILITY /NEEDED Three (3) junior high schools DESCRIPTION Acquire three (3) 20-acre sites Construct an 80,000 sq. ft. facility on each site ESTIMATED COST $28,800,000. FACILITY /NEEDED Seven (7) elementary school DESCRIPTION Acquire seven (7) 10 -acre sites Construct a 32,000 sq. ft. facility on each site ESTIMATED COST $27,440,000. BENEFIT TO PROJECT AREA AND IMMEDIATE NEIGHBORHOOD Thest facilities will serve the project area at all grade levels. They - will provide space for students brought about partly by redevelopment of the project area. RFL : mhw 1 -31 -84 a� n� o U, z ro C M W a I < 4 R AL Ic F n f V i u O • ," �• • ILA del Elio) t Ate. .41C zz `% j' ��RE - '\ 1:.1 _ ♦ � �=., Lam: 1 1 R , 1 "1 , . , \ t�•,,i .� � ,,, �� _ j! -= � I �' 'd. I.I. �, 4 VX iN f �. � i �., +� 1 :! ��� 11th �F-r i �}� -' {::— fit., 1 �',_ Iii, (. '` ' Anaheim Redevelopment Agency Orange Unified School District FACILITIES BENEFITING FROM AGENCY ALLOCATION OF TAX INCREMENT Map Key No. Facility 1 Anaheim Hills Elementary School 2 Crescent Elementary School 3 Imperial Elementary School 4 Nohl Canyon Elementary School 5 Riverdale Elementary School 14/lclj o 6 E 1 "-.o! PA9 Junior High Sc hoo l 7 Vista Del Rio Junior High School 8 Canyon High School 9 Canyon High School 10 O.U.S.D. District Office 11 M.O.T. Facility r Z EXHIBIT "C" PUBLIC IMPROVEMENTS Street Improvements Signalization Street Lighting Storm Drains Utilities Grading and Slope Landscaping Levees Flood Control Channels Landfill Sewers