County of San Diego - Tax Sharing Library District �� �
TAX SFIARING AGREEMENT
THIS TAX SHARING AGREEMENT (the "Agreement") is entered into on the 14th
day of December , 1993, by and between the COUNTY LIBRARY DISTRICT, a public
agency ("Disuict"), and the POWAY REDEVELOPMENT AGENCY, a public body corporate
and politic (the "Agency").
RECITALS
A. The Agency is a redevelopment agency existing pursuant to the provisions of the
California Communiry Redevelopment Law (California Health and Safery Code Section 33000, �
se�.) which has been authorized to transact business and exercise the powers of a redevelopment
agency pursuant to action of the City Council of the City of Poway (the "Ciry Council").
B. The Ciry Council has adopted Ordinance No. 117 on December 13, 1983 and
Ordinance No. 415 on June 15, 1993 pursuant to the California Communiry Redevelopment
Law approving and amending the Redevelopment Plan (the "Plan") for the Paguay
Redevelopment Project (the "Project").
C. The Plan contains provisions authorizing the allocation to the Agency of property
tax revenues derived from property located within the Project (the "Project Area") and
authorizing the allocation to the Agency of property ta�ces pursuant to California Health and
Safety Code Section 33670(b).
D. The District is an affected taxing entiry, as defined in Section 33353.2 of the
Health and Safety Code, which has general purpose property taxes levied on iu behalf by the
County of San Diego (the "Counry") on certain azeas that comprise the Project Area under the
Plan in Fiscal Year 1992-93.
E. Section 33401 of the Health and Safety Code authorizes the Agency to pay an
affected taxing entity with [erritory within a redevelopment project azea that amount of money
which the Agency determines is appropriate to alleviate the financial burden or detriment caused
to such entity by a plan adoption.
F. The Agency has found and determined that it would be appropriate to alleviate
that financial burden or deuiment caused to the District by the Plan by paying to or on behalf of
the Disuict certain monies consistent with Section 2 and the other terms and conditions of this
Agreement, all in accordance with Section 33401 of the Health and Safery Code.
G. The Agency and District recognize that, since the Library Disuict did not have a
tax sharing agreement prior to the amended Plan in 1993, the appropriate year from which to
base the tax shazing allocations in this Agre�ment is 1992/1993.
H. The District and the Agency desire to resolve and settle, once and for all times,
all present and past controversies, claims, causes of action or purpoRed causes of action,
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differences or disputes, both rea] and potential, ensuing against the Ciry and/or the Agency in
relationship to the Project and/or the Plan.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises and
covenanu contained herein, the parties agree as follows:
1. Definitions. For purposes of this Agreement, the following terms will
have the stated definitions:
(a) "Agency" means the Poway Redevelopment Agency, a public body
corporate and politic.
(b) "Bonded Indebtedness" means indebtedness incurred by the Agency
for any bonds, notes, interim certificates, debentures, certificates of participation or other
obligations issued by the Agency as it deems necessary or appropriate in implementation and for
the furtherance of the Plan and/or this Agreement pursuant to Article 5 (commencing with
Section 33640) of Chapter 6, Part 1 of the Community Redevelopment Law.
(c) "City" means the City of Poway, California, a California municipal
corporation.
(d) "City Council" means the Poway City Council.
(e) "County" means the County of San Diego, California.
(� "District" means the Counry Library District.
(g) "District's Share" shall mean 1.7081 percent of that poRion of Tax
Increment as that term is defined herein.
(h) "Fiscal Year" means the period from July 1 to and including the
immediately following lune 30.
(i) "Gross Tax Increment" means that portion of property taxes
resulting from the increase in assessed valuation over the 1983/1984 base year assessed valuation,
which tax revenues are allocated and paid into a special fund of the Agency pursuant to
California Health and Safety Code Section 33670(b) from the Project Area in accordance with the
Plan.
(j) "Ordinance" means Ordinance No. 415 adopted by the City
Council approving the amendment to the Plan.
(k) "Plan" means the Paguay Redevelopment Plan as amended for the
Paguay Redevelopment Project, adopted by the City Council by the Ordinance.
(I) "Project" means the Paguay Redevelopment Project.
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(m) "Project Area" means the tenitory which is located in the Project
pursuantto the Plan.
(n) "Tax Increment" means that portion of property taxes resulting
from the increase in assessed valuation over the 1992/1993 assessed valuation of $1,216,587,2'78
which tax revenues aze allocated and paid into a speciai fund of rhe Agency pursuant to
California Health and Safety Code Section 33670(b) from the Project Area in accordance with the
Plan, excluding the proportional ratio, as compared to the Gross Taac Increment, of the sums that
(a) the Agency is required to set aside and expend for the purposes of low- and moderate-income
housing pursuant to Health and Safety Code Section 33334.2 gt �., or successor statutes, and
(b) the Agency is required or mandated (rather than merely authorized or a discretionary
payment) to set aside or pay or expend for any purpose, pursuant to legislative requiremenu of
or revisions to the Communiry Redevelopment Law or other statutes or regulations, except where
the mandate requires set aside or payments that directly benefit the Ciry or Agency.
Notwithstanding the above, solely for the fiscal year 1993-1994 the Tax Increment definition
shall not exclude state mandated paymenu set out in @) above and shall only exclude payments
made under (a) above for the low to moderate housing fund. "Tax Increment" shall be calculated
using the worksheet and ihe example provided in E�chibit A attached hereto and incorporated
herein by this reference.
(o) "Term" of the Plan means the last to occur of(i) the period of time
the Plan remains in effect, (ii) the date all Agency debts aze paid in full, or (iii) the date that the
limit for incurring indebtedness under the Plan expires.
2. Allocation to District of the District's Shaze.
(a) The District's Shaze shall be paid on an biannual basis by
February 28 and May 31 of each year, based on the estimated Tax Increment, with an adjustment
to be paid within 30 days of receipt of the County Auditor and Controller's year-end statement.
The District shall place the funds received in a special account dedicated to be used to support
the operation of the Poway Library and shall be counted to offset the Ciry's fair share of the
overhead cost for operating the County Library System and for regional services which may be
fairly attributed to the Poway Library. Funds in the specia] account may be used to comply with
any cosu that the District incurs in performing under this Agreement.
(b)) By mutual agreement the Agency and the Counry Housing
Authority may determine to transfer to the County Housing Authority that portion of the tax
increment required to be segregated under Health and Safety Code Section 33334.2 for housing
programs which would have been attributable to the District but for the adoption and amendment
of the Plan.
3. Books and Records. 1'he Agency shall, within thirty (30) days after
receipt of written request from the District, make available to the District for review or audit its
records or statemenu regarding payments to the Disuict pursuant to this Agreement.
4. Payments Subject to Indebtedness. Paymenu by the Agency pursuant to
Section 2 aze subject to the conditions and limitations set forth in this Section 4:
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(a) The Agency's obligation under this Agreement to make payments
to or on behalf of the District is deemed to constitute an "indebtedness" within the meaning of
Health and Safety Code Sections 33670 and 33675.
(b) Except as set forth herein, the Agency's obligation to make
payments hereunder shall be limited to Tax Increment. In no way shall the Agency be liable for
such obligations from any other revenues. The City shall have no financial obligation or any
other obligations by virtue of this Agreement, and shall not be responsible for the dischazge of
obligations of ihe Agency herein.
(c) The obligations of Agency under ihis Agreement shall be
subordinate to the righu of the holder or holders (other than if the City of Poway or a public
entity in which it is a party is the holder of the indebtedness) of any existing or future bonds,
notes or other instrumenu of indebtedness (all refemed to herein as "indebtedness") of Agency
incurred or issued to finance the Project, including wiffiout limitation any pledge of tax increment
revenues from the Project Area to pay any portion of the principal and/or inrerest (and otherwise
comply with the obligations and covenants) of any bond or bonds issued or sold by Agency with
respc ct to the Project. Agency shall in good faith diligently attempt to market such bond or
bonds to incur such indebtedness in a manner such that sufficient tau increment revenues remain
available to pay Agency's obligations under this Agreement, after the priority pledge of tax
increment revenues to the holders of the indebtedness. When Agency is contemplating the sale of
bonds, Agency will provide District with a copy of its preliminary official statement which is the
basis for its bond issue, as soon as the preliminary official statement is available to Agency,
together with an exp;anation of how Agency intends to meet iu obligations under this Agr�ment.
In the event Agency is unable to meet its obligations under this
Agreement, such monies due to District shall be considered an indebtedness of Agency to District
and shall accrue and be due and owing until such obligation is fulfilled by Agency. In such
event, the obligation of Agency shall accrue interest until payment is made (but not if the cause
of the inability to pay is beyond Agency's control such as an earthquake or other major damage
or destruction in the Project Area, a serious economic decline, or similaz occurrence) computed
quarterly at the pooled money investment rate of the County of San Diego as published in the
Quarterly Earnings Report or a comparable successor publication. Until such accrued amounu
are paid, with interest as applicable, such indebtedness to Disuict shall be paid from the first
available tax increment revenues not used by Agency for such priority indebtedness, and not used
by Agency to administer the Project in a manner comparable to iu then recent experience,
prorata to District and any other taxing agencies with whom Agency is obligated under a similaz
agreement with respect to the Project.
(d) Notwithstanding any other provisions of this Agreement to the
contrary, the Agency's obligadon to make payments to or on behalf of the District under this
Agreement in any single Fiscal Year shall not: (i) exceed the amount of Tax Increment which
would have been received by the District if all the Tax Increment from the Project Area had been
allocated to all the affected taxing agencies without regazd to the division of taxes required by
Health and Safery Code Section 33670; (ii) be contrary to any provision of the Constitution or
other laws of the State of California; or (iii) be contrary to any covenants of the Agency as set
forth in the Bonded Indebtedness documents.
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(e) No paymenu shall be made by the Agency from the Tax Increment to
or on behalf of the District except as expressly set forth in Sections 2 and 21 of this Agreement.
5. Effective Date and Term. This Agreement shall become effective upon the
date of action and the approval of this Agreement by the Agency and shall remain in effect
throughout the Term. Notwithstanding the foregoing, this Agreement shall terminate
automatically and be of no further force or effect in the event the adoption of the Plan should be
set aside or annulled as the result of litigation of whatever form against the Plan.
If litigation of whatever form is filed by any person or entity chailenging the Plan,
the Ordinance or any proceeding in connection with such adoption proceeding, then the payment
requiremenu of the Agency in Section 2 hereunder shall be tolled and delayed for the period of
such litigation.
6. Notice of Plan Amendment. The District certifies to the Agency that it has
received all notices, written or published, that it is required by the California Community
Redevelopment Law to receive during the process leading ro the amendment of the Plan, and
hereby waives any and all legal righu it may have to contest the Plan due to a failure to receive
any statutorily required notice.
7. Accountin� Statement. Within thirty (30) days after written request by the
Agency, the Disuict shall promptly provide without charge a written statement accounting for the
expenditure of monies paid pursuant to this Agreement.
8. Release and Covenant Not to Sue or Challenge Plan The District
releases the Ciry and the Agency from any and all claims or causes of action, and covenants and
agrees and irrevocably binds itself and its officers, employees, agents and representatives forever
at no time or place to commence or participate in or prosecute any actions on account of any
claim or causes of action, whether past, present or future, azising out of the City's and the
Agency's adoption of the amendment to the Plan, or the City's or the Agency's lawful activities
in implementation of and pursuant to the Plan. The Disuict agrees that neither it, nor its
officers, employees, agenu or representatives at the expense, direction, recommendation or
encouragement of the District, shall file or participate in opposition to the Agency or the Ciry in
any challenge attacking or otherwise questioning (i) the validiry of the Plan, or (ii) the adoption
or approval of the Plan, or (iii) any of the findings, determinations, or filings previously made by
the Agency or the City Council in connection with the Plan, or (iv) the implementation of the
Pian, or any of its supporting documentation, including, without limitation, any Environmental
Impact Report prepazed for the Flan in connection with the actions set forth in pazagraphs (i)
through (iv) above.
By agreeing to the provisions included in this Section 8.0, the District dces not
waive the right to dispute the validity of any future amendments to the Plan.
9. Default. Failure or delay by any party to perform any term or provision
of this Agreement constitutes a default under this Agreement. The party who so fails or delays
must immediately commence to cure, correct or remedy such failure or delay, and shall complete
such cure, correction or remedy with reasonable diligence and during any period of curing shafl
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not be in default. The injured party shall give written notice of default to the party in default,
specifying the default complained of by the injured party. If the default is not commenced to be
cured within thirry (30) days after service of such notice of default and is not cured promptly in a
continuous and diligent manner within a reasonable period of time after commencement, the
defaulting party shall be liable for any damages caused by such default, and the non�efaulting
party may thereafter commence an action for damages with respect to such default or for specific
performance of this Agreement.
]0. Indemnification. The Agency shall indemnify and hold harmless the
District and iu officers, agents, employees, representatives and volunteers, from and against any
loss, liability, ciaim or judgment relating in any manner to ihe Agency's breach of iu obligations
pursuant to this Agreement. The District shall indemnify and hold hazmless the Agency and iu
officers, agents, employees, representatives and volunteers, from and against any loss, liabi(ity,
claim or judgment relating in any manner to the District's breach of its obligations pursuant to
this Agreement.
11. Notices. Written notices, demands and communications between the
parties shall be sufficiently given if delivered by hand, sent by telecopy or overnight delivery
service, or dispatched by registered or certified mail, postage prepaid, return receipt requested, to
the addresses specified below (or such other addresses as the parties may specify, from time to
time):
To A�y:
POWAY REDEVELOPMENT AGENCY
13325 Civic Center Drive
Poway, California 92064
Attention: Executive Director
To District:
COUNTY LIBRARY DISTRICT
1600 Pacific Highway
San Diego, California 92101
Attention: Chief Administrative Officer
All notices and communications sent to the parties shall be deemed to have been
received three (3) days after the notice or communication has been deposited in the U.S. Mail,
and the next business day after the notice or communication has been delivered by hand or sent
by telecopy or overnight delivery service.
12. Nonliability of Officials and Employees of Parties. No member, official
or employee of the parties hereto shall be personally liable to the other party, or any successor in
interest, in the event of any default or breach of this Agreement or for any amount which may
become due hereunder, or on any obligations under the terms of this Agreement.
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13. Conflicu of Interest. No member, official or employee of the parties
hereto shall have any Personal interest, direct or indirect, in ihis Agreement, nor shall any
member, official or employee participate in any decision relating to the Agreement which affects
his or her personal interesu or the interesu of any corporation, partnership or association in
which he or she is directly or indirectly interested.
14. Entire A�reement. This Agreement constitutes the entire understanding
and agreement of the parties, integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreemenu between the parties with
respect to all or any part of the subject matter hereof.
15. Waivers and Amendmenu. All waivers of the provisions of this
Agreement shall be in writing and executed by the appropriate authorities of the parties, and all
amendmenu hereto shall be in writing and executed by the appropriate authorities of the parties.
16. Time of Essence. Time is of the essence with respect to every poRion of
this Agreement of which time is a material part.
17. L.egal Challen¢e. The District and Agency agree that in the event
litigation is initiated by someone not a party to this Agreement attacking the validity of alI or any
portion of this Agreement, both parties shall support and seek to uphold this Agreement.
18. Governine Law. This Agreement shall be construed in accordance with
the laws of the State of California. Legal actions concerning any dispute hereunder shall be
instituted in the appropriate court in the County of San Diego, California.
19. Further Assurances. Each party without further consideration agrees to
execute such other and further documenu, and to perform such other and further acu, as may be
necessary or proper in order to consummate the settlement and transaction contemplated by this
Agreement. In the event that bond cour�sel for the Agency requires modifications to this
Agreement in order to effect the issuance of bonds, all parties hereto shall promptly execute such
alterations, changes or amendmenu as may be reasonably required to allow for bond issuance
without impeding the obligations and righu of the parties hereunder.
20. Severability. If any term or provision of this Agreement shall be invalid
or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby,
and the parties hereto shall take further actions as may be reasonable necessary and available to
them to effectuate the intent of the parties as to all provisions set forth in this Agreement.
21. Tax Rate Increase. The Agency shall furrher pay to the District the
District's Share of Tax Increment created from future tau rate increases imposed specifically for
the District's benefit.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.
COUNTY LIBRARY DISTRICT, a public agency
BY: �i►.� J . �P� �-
Clerk of the Board of Supervisors
"DISTRICT"
ATTEST:
Approved andlor authoriz��' �^ ' - ""��ard
of Supervi orsJ�f the Cou'���: - � -�^o
. Date: �a �y,� Minutc. �� _. a� .
THOMAS J. PASTUSZKA
APPROVED AS TO FORM: Clerk of t Board qf Supe�+„�
By c��o��/1��"J
f� '�°�'Ui� ��..
� �(�� 1 YY - C�/�/I/j��/
lL% Y' ----��� �
County Counsel � ��-9i-
POWAY REDEVELOPMENT AGENCY,
By:�o-r,� .
Chairman , Don H i gg i i
"AGENCY"
ATTEST:
�'}'1 ' � �ll�r "�,�
Agency $�ec tary, Marjorie K. 4lahlsten
i
APPROVED AS TO FORM:
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Agenc eral Counsel, Stephen M. Eckis
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Exhibit A
WORKSHEET
CALCULATION OF "TAX INCREMENT" PER AGREEMENT SECTION 1(n)
FISCAL YEAR: ( ) ESTIMATED INCREMENT ( ) ACTUAL INCREMENT
Line 1 BASE YEAR (1983-84) ASSESSED VALUATION 203,330,909
Line 2 1992-93 ASSESSED YALUATION 1 . 216, 587,278
Line 3 ASSESSED YALUATION FOR fISCAL YEAR SHOWN
ABOUE (PER AUDITOR AND CONTROLLER'S
STATEMENT)
Line 4 GROSS TAX INCREMENT FOR FISCAL YEAR SHOWN
ABOVE (PER AUDITOR AND CONTROLLER'S
STATEMENT)
Line 5 HOUSING SET-ASIDE
Line 6 OTHER MANOATORY SET-ASIDES, PAYMENTS AN�
EXPENDITURES (ATTACH STATEMENT LISTING
AND DESCRIBING EACH AMOUNT INCLUDED IN
TOTAL)
Line 7 NET INCREMENT: LINE 4 MINUS LINES 5 AND 6
Line 8 CURRENT ASSESSED VALUATION MINUS 1992-93
ASSESSED VALUATION: LINE 3 MINUS LINE 2
Line 9 CURRENT ASSESSED VALUATION MINUS BASE
YEAR ASSESSED VALUATION: LINE 3 MINUS
LINE 1
Line 10 INCREMENTAL ASSESSED VALUATION RATIO:
LINE 8 DIVIDED BY LINE 9
Line 11 "TAX INCREMENT" PER AGREEMENT SECTION
1(n) : LINE 7 TIMES LINE 10
DISTRICT'S SHARE PER AGREEMENT: LINE 11 TIMES 1.70819'0 =
� November 30, 1993
CITYRDY\POMAY\LIBAGEXA.FRM 9
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Exhibit A
WORKSHEET
CALCULATION OF °TAX INCREMENT° PER AGREEMENT SECTION 1(n)
FISCAL YEAR: ( ) ESTIMATED INCREMENT ( ) ACTUAL INCREMENT
Line 1 BASE YEAR (1983-84) ASSESSED VALUATION 203,330,909
Line 2 1992-93 ASSESSED VALUATION 1 ,216,587 ,278
Line 3 ASSESSED VALUATION FOR FISCAL YEAR SHOWN
ABOVE (PER AUDITOR AND CONTROLLER'S
STATEMENT) 1 ,278,036,486
Line 4 GROSS TAX INCREMENT FOR FISCAL YEAR SHOWN
ABOUE (PER AUDITOR AND CONTROLLER'S
STATEMENT) 11 ,835, 599
Line 5 HOUSING SET-ASIDE [20�] 2, 367, 320
Line fi OTHER MANDATORY SET-ASIDES, PAYMENTS AND
EXPENDITURES (ATTACH STATEMENT LISTING
AND DESCRIBING EACH AMOUNT INCLUDED IN
TOTAL) [N/A for 1993-94 per Agreement] Q
Line 7 NET INCREMENT: LINE 4 MINUS LINES 5 AND 6 9,469,279
Line 8 CURRENT ASSESSED VALUATION MINUS 1992-93
ASSESSED YALUATION: LINE 3 MINUS LINE 2 61 ,449,208
Line 9 CURRENT ASSESSED VALUATION MINUS BASE
YEAR ASSESSED VALUATION: LINE 3 MINUS
LINE 1 1,074,705, 577
Line 10 INCREMENTAL ASSESSED VALUATION RATIO:
LINE 8 DIVIDED BY LINE 9 0.0572
Line 11 "TAX INCREMENT" PER A6REEMENT SECTION
1(n) : LINE 7 TIMES LINE 10 541,643
DISTRICT'S SHARE PER AGREEMENT: LINE 11 TIMES 1.7081Y = 9 .252
November 30, 1993
G TYRDY\POWAY\LIBAGEXA.XMP lO