Loading...
CC Resolution No. 00-169RESOLUTION NO. 00-169 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO APPROVING AN AGREEMENT BETWEEN THE CITY OF CUPERTINO AND THE COUNTY OF SANTA CLARA TO ASSIST THE COUNTY IN ALLEVIATING ANY POTENTIAL FINANCIAL IMPACT OF THE VALLCO REDEVELOPMENT PROJECT ON THE COUNTY WHEREAS, the Cupertino Redevelopment Agency has prepared a proposed Redevelopment Plan for the Cupertino Vallco Redevelopment Project; WHEREAS, as part of the process prior to the consideration of the proposed Redevelopment Plan by the City Council, the Agency has consulted with all affected taxing entities, including the County. WHEREAS, during the Agency's consultations with the County in connection with the Redevelopment Plan, the County expressed its concern that the Redevelopment Plan would negatively impact the County's financial capability; WHEREAS, while it is difficult to assess with any degree of certainty the potential financial impact to the County above and beyond that which will be mitigated by mandatory payments to be made by the Agency pursuant to the California Community Redevelopment Law, the City desires to provide certain assistance to the County for the purpose of alleviating any potential financial impact of the Redevelopment Plan on the County. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino that the City Manager is authorized to sign the attached agreement between the City of Cupertino and the County of Santa Clara. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 5th day of June, 2000, by the following vote: Vote AYES: NOES: ABSENT: ABSTAIN: Members of the City Council Burnett, Chang, James, Lowenthal, None None None Statton ATTEST: Cit~ APPROVED: AGREEMENT BETWEEN THE CITY OF CUPERTINO AND THE COUNTY OF SANTA CLARA THIS AGREEMENT (the "Agreement") is entered into as of the day of ,2000, by and between the CITY OF CUPERTINO, a municipal corporation (the "City") and the COUNTY OF SANTA CLARA, a political subdivision of the State of California (the "County"). Recitals A. The Cupertino Redevelopment Agency (the "Agency"), a redevelopment agency, organized and existing under and by virtue of the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq., the "CRL"), has prepared a proposed Redevelopment Plan (the "Redevelopment Plan") for the Cupert'mo Vallco Redevelopment Project (the "Projecf') for consideration by the City Council of the City of Cupertino (the "City Council"). B. As a part of the process prior to the consideration of the proposed Redevelopment Plan by the City Council, the Agency has consulted with all affected taxing entities, including the County. C. During the Agency's consultations with the County in connection with the Redevelopment Plan, the County expressed its concern that the Redevelopment Plan would negatively impact the County's financial capability. D. While it is difficult to assess with any degree of certainty the potential financial impact to the County above and beyond that which will be mitigated by mandatory payments to be made by the Agency pursuant to the CRL, the City desires to provide certain assistance to the County for the purpose of alleviating any potential financial impact of the Redevelopment Plan on the County. Agreements NOW, THEREFORE, THE CITY AND THE COUNTY HEREBY AGREE AS FOLLOW S: Section 1. Annexation of Garden Gate/Monta Vista. The City agrees to pursue the process to annex those properties currently located within Page 1 of 6 the unincorporated area of the County and more particularly described as follows: Properties within the area commonly referred to as "Garden Gate," as shown on the map attached hereto and incorporated herein by this referenced as Exhibit A; and Properties within the area commonly referred to as "Monta Vista," as shown on Exhibit A. The City's undertakings hereunder shall be with the intent to complete the annexation process within five (5) years from the effective date of this Agreement. Upon completion of annexation, the City shall assume the costs of providing services to the properties annexed, as applicable. Section 2. Additional Assistance to County. The City agrees that it will take the actions set forth in this Section 2. a. Sales Tax Revenue: 0) Pursuant to the provisions of Article XIII, Section 29 (b) of the California Constitution, for the sixth (6th) fiscal year (July 1 - June 30) following the effective date of this Agreement and for each fiscal year thereafter until the Termination Event (as hereafter defmed), the City shall pay to the County ten percent (10%) of the New Project Area Sales Tax Revenue (as hereafter defined) if the total sales per square foot of the total shopping center in the Project Area has been in excess of $375 for the applicable fiscal year (the "Base Sales Amount"), as adjusted in accordance with changes in the Consumer Price Index (herein "CPI") pursuant to subdivision (2) below. (2) The Base Sales Amount shall be increased on July 1 of each year following the effective date of this Agreement by a percentage amount equal to the percentage amount that the CPI has increased, if any, from the amount of the CPI in effect at the beginning of the preceding twelve (12) month period. The CPI, as used herein, shall mean the Consumer Price Index for All Urban Consumers, San Francisco - Oakland - San Jose Metropolitan Area (1982-84=100), All Items. If the CPI does not exist in the same format as described herein or ceases to exist in its entirety, the City shall substitute any official index published by the Bureau of Labor Statistics, or successor or similar governmental agency, as may then be in existence and be most nearly equivalent thereto. 5/30/00 Page 2 of 6 (3) (4) (5) (6) "Project Area," as used in this Agreement, shall mean the area included within the boundaries of the Cupertino Vallco Redevelopment Project described in the Redevelopment Plan for the Cupertino Vallco Redevelopment Project, as adopted by the City Council. "New Project Area Sales Tax Revenue," as used in this Agreement, shall mean that portion of the total sales tax actually received by the City from the Project Area during a fiscal year remaining after deducting the following: (a) $1,567,000 (the approximate level of sales tax revenue received by the City from the Project Area as of the effective date of this Agreement), which amount shall be adjusted in accordance with changes in the CPI in the same manner as adjustments are made to the Base Sales Amount pursuant to subsection (2) above; and (b) Payments of sales tax revenue made by the City to any person or entity undertaking the redevelopment and revitalization of the Project Area or portions thereof under an agreement with the City and Agency. "Termination Event," as used in this Agreement, shall mean the expiration of the effectiveness of the Redevelopment Plan for the Cupertino Vallco Redevelopment Project. Payments to the County under this subsection 2.a. shall be made within ninety (90) days after the end of each fiscal year for which the Base Sales Amount was achieved and the City actually received New Project Area Sales Tax Revenue. Additional Sheriff Deputy: (1) For the sixth (6th) fiscal year following the effective date of this Agreement and for twenty (20) years thereafter, the City shall pay to the County the cost of employing one additional sheriff deputy; this cost is currently estimated to be $100,000 per year based on the County's fiscal year 1999/2000 budget. (2) Payments to the County under this subsection 2.b. shall be made within ninety (90) days after the end of each applicable fiscal year. (3) In the event that, within five (5) years from the effective date of this Agreement, the City has completed the annexation of ninety percent (90%) 5/30/00 Page 3 of 6 of the parcels witlfin both the Garden Gate and Monta Vista areas as described in Section 1 of this Agreement, the City's monetary obligations under this subsection 2.b. shall be terminated. City's obligations under this subsection shall also terminate at such time as City no longer contracts with County for Sheriff's services. Section 3. Changes in Tax Laws. If the state laws governing the distribution of property and/or sales tax revenues are changed such that the City's or County's share of such revenues, as they exist on the effective date of this Agreement, is/are materially altered, then the mount to be paid by City to County under Section 2a of this Agreement shall be adjusted proportionately. In that event, the parties agree to negotiate in good faith to amend this Agreement to reflect that adjustment. Section 4. No Litigation by County. The County agrees not to file or engage or assist in any litigation, claim or other proceeding to directly or indirectly test or challenge the validity of the Redevelopment Plan for the Cupertino Vallco Redevelopment Project, including the Ordinance approving and adopting the Redevelopment Plan and the Environmental Impact Report prepared for the Redevelopment Plan. Section 5. Effect of Litigation on Agreement. In the event any litigation is initiated challenging the validity of the Redevelopment Plan for the Cupertino Vallco Redevelopment Project, the Ordinance approving and Mopting the Redevelopment Plan or the Environmental Impact Report related to the Redevelopment Plan (the "Project Documents/Actions"), and a judgment becomes fmal which declares all or any part of the Project Documents / Actions invalid or ineffective, this Agreement shall become null and void. During the pendency of any litigation challenging the validity of the Project Documents / Actions, the effect of this Agreement shall be suspended and the City shall have no obligation hereunder until a judgment becomes final upholding the validity of the Project Documents / Actions. // # /! 5/30/00 Page 4 of 6 Section 6. Notices. Formal notices, demands and communications between the City and the County shall be sufficiently given if dispatched by registered or certified mail, postage prepaid, return receipt requested, to the following addresses: Tot he City: City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Atto: City Manager To the County: County of Santa Clara 70 West Hedding Street San Jose, CA 95110 Attn: County Executive Officer Section 7. Severability. If any term of this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, then the remaining terms shall continue in full force and effect unless the rights and obligations of the parties have been materially altered or abridged by such invalidity, voiding or unenforceability. Section 8. Entire Agreement; Modification The provisions of this Agreement constitute the entire understanding and agreement of the City and the County respecting the subject matter hereof. No oral agreements, understandings or promises made by the parties or their agents that are not contained in this Agreement shall be binding. This Agreement shall not be amended except by a written instrument executed by both parties. Section 9. Attorneys' Fees. Il'any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach of this Agreement, then the party prevailing in any such action shall be entitled to recover against the party not prevailing in any such action shall be entitled to recover against the party not prevailing all reasonable attorneys' fees and costs incurred in such action. Section 10. Effectiveness. This Agreement shall become effective as of the date that the Ordinance approving and adopting the Redevelopment Plan for the Cupertino Vallco Redevelopment Project becomes 5/30/00 Page 5 of 6 effective. IN WITNESS WHEREOF, the City and the County have executed this Agreement as of the date first above written. ATTEST: By: City Clerk CITY OF CUPERTINO By: Mayor COUNTY OF SANTA CLARA ATTEST: By: Phyllis Perez, Clerk of the Board APPROVED AS TO FORM AND LEGALITY: By: Donald F. Gage, Chairperson Debra L. Cauble Assistant County Counsel 5/30/00 Page 6 of 6