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HomeMy WebLinkAbout91-078 CC ResolutionRESOLUTION NO. 91-78 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A SALES TAX ALLOCATION AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND THE CITY OF TEMF_,CULA DATED AS OF JULY 23, 1991 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Temecula does hereby find, determine and declare that: A. The proposed Sales Tax Allocation Agreement would provide for City assistance to the Agency pursuant to the Community Redevelopment Law in order to assist the Agency in meeting its obligations pursuant to that certain Owner Participation Agreement dated as of July 23, 1991 by and between the Agency and Costco Wholesale Corporation for the redevelopment of certain property for a major retail and wholesale warehouse sales facility. B. Completing the redevelopment of the site pursuant to the proposed Owner Participation Agreement and the City providing assistance to the Agency to accomplish this goal and meet its obligations pursuant to the Owner Participation Agreement is in the vital and best interest of the City of Temecula and the health, safety and general welfare of its residents and is in accordance with the public purposes and provisions of the Redevelopment Plan for the Temecula Redevelopment Project Area. C. The Agreement approved by this Resolution pertains to and affects the ability of the Agency to finance its statutory obligations and its obligations under the Plan and for both the City and Agency to finance and carry out the purposes of this Agreement and is intended to be a contract within the meaning of Government Code Section 53511. Rems 91-78 -1- SECTION 2. The City Council of the City of Temecula hereby approves that certain agreement dated as of July 23, 1991 entitled "Sales Tax Allocation Agreement" by and between the Redevelopment Agency of the City of Temecula and the City of Temecula and authorizes the Mayor to execute said agreement in substantially the form attached hereto as Exhibit A. SECTION 3. The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 23rd day of July, 1991. Ronald J. Parks, Mayor ATTEST: J~e S_~)Greek, City Clerl~-~-~ [SE ff ] I HEREBY CERTIFY that the foregoing is a true copy of a Resolution adopted by the City Council of the City of Temecula at a regular meeting thereof, held on the 23rd day of July, 1991, by the following vote, to wit: AYES: 5 NOES: 0 ABSENT: 0 COUNCIL MEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks COUNCIL MEMBERS: None COUNCIL MEMBERS: None Ju eek, City Clerk R¢~s91~8 -2- EXHIBIT "A" ' SALES TAX ALLOCATION AGREEMENT THIS AGREEMENT is made and dated as of July 23, 1991 by and between the City of Temecula, a general law city and a municipal corporation duly incorporated and existing under the laws of the State of California (the "City") and the Redevelopment Agency of the City of Temecula, a public body corporate and politic, duly created, established and authorized to transact business under the Community Redevelopment Law of the State of California (Section 3300 et seq. of the Health and Safety Code) (the "Agency"). In consideration of the mutual covenants and conditions described herein, the parties hereto agree as follows: 1. Recitals. to the following facts: This Agreement is made with respect A. On July 23, 1991, the Agency approved an Owner Participation Agreement ("OPA") between the Agency and Costco Wholesale Corporation, Inc. ("Participant") for the development of a Costco retail and wholesale sales facility. B. Completing the redevelopment of the site pursuant to the Owner Participation Agreement with the City providing assistance to the Agency to accomplish this goal and meet the Agency's obligations pursuant to the Owner Participation Agreement is in the vital and best interest of the City of Temecula and the health, safety and general welfare of its residents and, further, is in accordance with the public purposes and provisions of the Redevelopment Plan for the Temecula Redevelopment Project Area. The proposed Owner Participation Agreement will create a major retail facility capable of attracting many customers to the developing commercial area surrounding the site and will encourage further retail development within the project area thereby contributing sales tax and other revenue to the City and generating employment opportunities. C. This Agreement pertains to and affects the ability of the Agency and the City to finance their statutory obligations and the Agency's obligations under the Plan and for both the city and the Agency to finance and carry out the purposes of this Agreement and the Owner Participation Agreement. sff/AGRl10614 7/21/91 This Agreement is, therefore, intended to be a contract within the meaning of Government Code Section 53511. D. Pursuant to the provisions of Sections 33220, 33125, 33132, 33610, 33622, and other applicable law, the City may, for the purposes of aiding and cooperating in the undertaking and operation of redevelopment projects located within the City, provide financial assistance to the Agency to carry out its projects. The financial assistance provided by the City to the Agency pursuant to this Agreement is necessary to enable the Agency to carry out the purposes of the Owner Participation Agreement and to provide the benefits for the community as specified therein. Without the redevelopment of the site pursuant to the Owner Participation Agreement, the funds provided by the City to the Agency pursuant to this Agreement would not have been generated. 2. City Assistance to Agency. A. Beginning in the first calendar year quarter following issuance of the Certificate of Completion pursuant to Section 3.16 of the Owner Participation Agreement, the City shall advance to Agency, subject to repayment as provided in Paragraph 4, an amount equal to the sales tax actually received by the City from the site ("Sales Taxes") in accordance with the following schedule: 1. In the first year, an amount equal to Sales Taxes in excess of Two Hundred Thousand Dollars ($200,000.00); 2. In the second through ninth years, an amount equal to Sales Taxes in excess of Two Hundred Ten Thousand Dollars ($210,000.00) with said minimum amount increasing by five percent (5%) per year compounded annually during years three (3) to nine (9); 3. In the tenth year, an amount equal to Sales Taxes in excess of Three Hundred Seventy-Five Thousand Dollars ($375,000.00); 4. In the eleventh year, an amount equal to Sales Taxes in excess of Four Hundred Twenty- Five Thousand Dollars ($425,000.00); and sff/AGRl10614 7/21/91 5. In the twelfth year, an amount equal to Sales Taxes in excess of Four Hundred Seventy- Five Thousand Dollars ($475,000.00). B. The maximum amount of the assistance described in subparagraph A, shall be Two Million Five Hundred Thousand Dollars ($2,500,000.00). C. The City shall make the payments described in subparagraph A to the Agency at such time as the Agency shall request in order to meet its obligations pursuant to Section 2.7 of the Owner Participation Agreement. D. The payments to be made by the City to the Agency pursuant to this section shall be considered a contractual obligation of the City. Nothing herein shall be construed to be a pledge of sales tax revenue and such contractual obligation shall be subordinate to the City's current or future pledge of such revenues for bonded indebtedness. 3. Appropriation of Sales and Use Tax Revenues. Nothwithstanding any other term, covenant or condition contained in any section of this Agreement, while the City agrees to use its best efforts to appropriate sales and use tax revenues each year throughout the term of this Agreement, the City does not unqualifiedly and irrevocably obligate itself so to act, nor to expend any funds of the City, nor does the City incur any specific obligation or indebtedness hereunder which shall extend beyond the fiscal year of the City within which this Agreement shall have been entered into, and the City has and shall continue to have and enjoy the absolute right to expend the sales and use tax revenues accruing in any future fiscal year in any manner which the City shall deem appropriate in the sole exercise of its discretion. The City shall in no way be obligated to make such appropriation if there are not sufficient funds in the general fund of the City to do so as determined by the City Council in the exercise of its discretion. 4. Agencv Repayment of City Assistance. Agency shall repay to the City the amounts advanced pursuant to Paragraph 2, with twelve percent (12%) interest. Payment of principal and accrued interest shall be at such times and in such amounts as the City may demand. 5. Parties Benefited. The terms of this Agreement are intended to solely benefit the Agency and the sff/AGRl10614 7/21/91 City as parties to this Agreement. Nothing herein shall be construed to grant to or to allow any parties other than the Agency or the City to obtain any benefits from it. 6. Validation Action. The obligations described in this Agreement shall not become effective unless and until a final judgment validating the legality of this Agreement and the Owner Participation Agreement pursuant to Code of Civil Procedure Section 860 is entered. IN WITNESS WHEREOF, the Agency and the city have executed this Agreement as of the date first written above. REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA By P~Moore, Chairperson CITY OF TEMECULA Ronald J. Parks, Mayor ATTEST: June~eek, Secretary/ city Clerk APPROVED AS TO FORM: Scott F. Field, Agency General Counsel/City Attorney sff/AGRl10614 7/21/91