AGENDADOCKETFORM SUBJECT: COMPENSATION AGREEMENT WITH THE CITY OF CONCORD FOR. DISPOSITION OF REAL PROPERTIES

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1 ... ~ -- CONTRA COSTA WATER DISTRICT Agenda Item No. Meeting Date: Resolution: 7. December 7, 2016 (X) Yes ( ) No AGENDADOCKETFORM SUBJECT: COMPENSATION AGREEMENT WITH THE CITY OF CONCORD FOR. DISPOSITION OF REAL PROPERTIES SUMMARY: As part of the Budget Control Act of 2011, and in order to protect funding for core puq)ic"services at the.local level, the California Legislature approved the dissolution of.the state' s more than 400 Redevelopment Agencies (RD As). The RDAs were. officially dissolved as of February 1, 2012 and the resulting prope1ty tax revenues _-are being used to pay required payments on existing bonds, other obligations, and pass-through payments to local governments. The remaining prope1ty tax revenues_are being allocated to cities, counti_es, special districts, and school disti-icts. AB xl 26, as subsequently amended by AB 1484 and SB 107 (collectively, the Dissolution Law), requires that Succ~ssor Agencies be formed to wind down the former RDA functions, and that the Successor Agencies prepare a long-range property management plan that govei.ns the dtsposition and use of the former RDA's real property. The Successor Agency to the City of Concord (City) RDA is responsible for winding down the affajrs of the fmmer Concord RDA. The Successor Agency prepared, and its Oversight Board and the Depaiiment of Finance approved, a long-range property management plan that governs the disposition and use of the RDA's real prope1ty. The City Council has authorized the City Manager to neg?t~ate and enter into compensation agreements with the affected taxing entities regarding distiibution of net. proceeds for four prope1iies cun-ently held for future development. In order to receive the prope1iies, t_he Dissolution Law requires the City to reach a compensation agreement with tl1e other taxing entities, including the District. (Continued on Page 2) FISCAL IMP ACT: The City anticipates that the four prope1iies will be sold within the next two yeai s. The amount of the distribution will depend upon the amount for which the properties are sold; Based on the Disttict's 0.48% pro rata share, the allocated revenues are estimated at approximately $10,000. RECOMMENDED ACTION: Adopt Resolution No authorizing Contra Costa Water District to enter into a compensation agreement with the City. of Concord and affected taxing entities regarding the. disposition of real prope1iies held by the City of Concord. Desiree Castello Director of Finance Assistant General Manager JB/DC:dmg Attachments: 1) Resolution No ; 2) Site Map

2 Compensation Agreement with the City of Concord for Disposition Of Real Prope1ties December 7, 2016 Page 2 SUMMARY (Continued from Page 1): AGENDA DOCKET FORM The City has proposed a compensation agreement and provided it for the District' s review and approval. The agreement requires the City to distribute the net proceeds of the sale of the four properties to the Contra Costa County Auditor-Controller for distribution to the taxing entities, in accordance with each entity's pro rata share of the tax base. Key te1ms are provided as an exhibit to the resolution (Attachment 1) and a site map provided as Attachment 2. An additional eight parcels formerly owned by the RDA will be conveyed by the Successor Agency to the City for governmental uses; no compensation will be distributed in connection with-these transfers. 1

3 Attachment 1 RESOLUTION NO A RESOLUTION AUTHORIZING CONTRA COSTA WATER DISTRICT TO ENTER A COMPENSATION AGREEMENT WITH THE CITY OF CONCORD AND AFFECTED TAXING ENTITIES REGARDING DiSTRIBUTION OF NET PROCEEDS FROM DISPOSITION OF REAL PROPERTIES HELD BY CITY OF CONCORD FOR FUTURE DEVELOPMENT PURSUANT TO APPROVED LONG-RANGE PROPERTY MANAGEMENT PLAN WHEREAS, Assembly Bill xl 26, as subsequently amended by AB 1484 and SB 107 (collectively, the "Dissolution Law") dissolved redevelopment agencies fanned under the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.); and WHEREAS, under the Dissolution Law, all real prope1ty owned by the Concord Redevelopment Agency ("RDA") at dissolution passed by operation of law to the Successor Agency to the Concord Redevelopment Agency ("Successor Agency"); and WHEREAS, Section S(b) of the Dissolution Law required the Successor Agency to prepare and submit for review and approval by the Oversight Board for the Successor Agency ("Oversight Board") and the California Depaiiment of Finance ("DOF") a long-range prope1iy management plan ("LRPMP") addressing the disposition and use of real property owned by the Successor Agency; and WHEREAS,. the Oversight Board approved the Successor Agency's LRPMP on November 19, 2015; and 2015;and WHEREAS, DOF approved the Successor Agency's LRPMP by letter dated December 1, WHEREAS, the approved LRPMP authorizes the Successor Agency to transfer the following four properties ( collectively, "Retention Prope1iies") to the City ~f Concord ("City") for retention and future development pursuant to ai1 approved redevelopment plan under Section (c)(2) of the Dissolution Law:

4 Resolution No December 7, 2016 Page2 1. Concord Avenue Site, located at 1701 and 1711 Concord Avenue, Concord, CA (APN ); 2. Town Center II/Galindo Street Site, located at 1753 Galindo Street, Concord, CA (APN ,012); 3. Oak Street- West Site (APN ); and Market Street (Pine Street Site), located at 1880 Market Street, Concord, CA (APN ); and WHEREAS, the City is required, with ~ espect to the Retention Properties, to "reach a compensation agreement with the other taxing entities to provide payments to them in proportion to their shares of the base prope1iy tax, as dete1111ined pursuant to Health and Safety Code Section 34188, for the value of the prope1ty retained" (Health & Safety Code 34 l 80(f)(l )); and WHEREAS, the City has presented the District with the proposed Compensation Agreement ("Agreement") which has been reviewed by staff and General Counsel, and the key terms attached as an Exhibit for the Board's consideration, approval, and execution; and WHEREAS, the Agreement requues the City to remit the net proceeds from the disposition of each of the Retention Properties to the Contra Costa County Auditor-Controller for distribution to the taxing entities in accordance with each taxing entity' s pro rata share of the tax base. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Contra Costa Water District that: co1tect. 1. The District hereby finds and determines that the foregoing recitals are true and 2. The District hereby approves and authorizes the General Manager or his designee, to execute and enter into the Agreement in the f01m attached, with such further minor conforming, technical or clarifying changes or revisions as may be agreed to and approved by General Counsel.

5 Resolution No December 7, 2016 Page 3 The General Manager or his designee and District Secretary are fmiher authorized and directed to take such further actions and execute such docm11ents on behalf of the District as are necessary to cany out the Agreement. 3. This Resolution shall take effect immediately upon its adoption. ******** The foregoing Resolution was duly and regularly adopted at a meeth1g held on the of December 2016, by the Board of Directors of the Co~tra Costa Water District by the following vote: AYES: NOES: ABSENT: ABSTAIN: Lisa M. Borba, President ATTEST: Mary A. Neher District Secretary

6 Exhibit KEY TERMS OF AGREEMENT FOR TAXING ENTITY COMPENSATION This Agreement for Taxing Entity Compensation (Agreement) is to be entered into by and among the following public agencies (Parties or Taxing Entities): City of Concord (City) County of Contra Costa, a political subdivision of the State of California (County) Contra Costa County Library Contra Costa Fire Protection District Contra Costa- Public Works Contra Costa County Flood Control and Water Conservation District Contra Costa County Water Agency Contra Costa County Resource Conservation District Contra Costa County Mosquito and Vector Control District Central Contra Costa County Sanitary District Concord/Pleasant Hill Healthcare District Contra Costa Water District Bay Area Rapid Transit District Bay Area Air Quality Management District East Bay Regional Park District Contra Costa County Superintendent of Schools Mt. Diablo Unified School District Contra Costa Community College District Pursuant to Assembly Bill x 1 26, effective February 1, 2012, the Redevelopment!Agency of the City of Concord (Redevelopment Agency) was dissolved, and the City elected to serve as the successor agency to the dissolved Redevelopment Agency. The Successor Agency prepared a Long-Range Prope1iy Management Plan (LRPMP) that addresses disposition of the real property formerly owned by the Redevelopment Agency. On November 19, 2015, the LRPMP was approved by Resolution No of the Oversight Board to the Successor Agency. On December 1, 2015, the State Department of Finance approved the LRPMP. Pursuant to the LRPMP, the Successor Agency will transfer certain real prope1ty assets to the City for future development, subject to entering into this Agreement with the Taxing Entities for the distribution of funds received, if any, from the sale of such properties. 1. Purpose. The purpose of this Agreement is to address the allocation of certain prospective revenues among the taxing entities that share in the prope1iy tax base for prope1iy located within the Redevelopment Project Areas formerly administered by the Redevelopment Agency. 2. Parcels to be Conveyed for Development Consistent with Plans. Promptly following the Effective Date ( anticipated to occur prior to December 31, 2016), and in consideration for the distributions to the Taxing Entities_ by the City through the Auditor Controller, the Successor Agency shall convey, and the City shall accept, all of the interest in and to the four (4) parcels that, pursuant to the LRPMP, the City shall retain for future development in accordance with the applicable Redevelopment Plans, and the Concord General Plan. The Successor Agency shall

7 convey the Properties by grant deed in a form reasonably acceptable to the City. The four parcels are more fully described below: LRPMP Description Concord A venue Site Town Center II/Galindo Street Site Oak Street West Site 1880 Market Street (Pine Street Site) Address 1701 and 1711 Concord Ave Galindo Street Several 1880 Market Street APN An additional eight parcels formerly owned by the Redevelopment Agency will.be conveyed by the Successor Agency to the City for continued governmental uses. No compensation will be paid to the City or to the Taxing Entities in connection with the foregoing transfers. 3. Compensation Arrangement. The City will remit the Net Umestricted Proceeds, if any, to the Contra Costa County Auditor-Controller for distribution to the Taxing Entities in accordance with each Taxing Entity's pro rata share of the Tax Base. 4. Sale Procedures and Proceeds. The City is obligated to convey the Prope1iies for development consistent with the Plans. Within a time frame determined by the City to yield a financially feasible and marketable development, the City shall use diligent good faith efforts to select a developer for each Prope1iy, and to dispose of each Property in accordance with a Disposition and Development Agreement that enables development of each Property in accordance with the Plans. 5. Compensation to Taxing Entities Related to Disposition Proceeds. Within 15 days after receiving the final distribution of the proceeds of the sale of each Prope1iy, the City shall remit the Net Unrestricted Proceeds for that Property to the Auditor-Controller for distribution by the Auditor. Upon request, the City shall deliver to the Taxing Entities an accounting of all such costs, expenses and restricted proceeds. The Auditor-Controller shall have the right, on behalf of the Taxing Entities and upon reasonable written notice to City, to audit and examine such books, records and documents and other relevant items in the possession of City, but only to the extent necessary for a proper determination of Net Unrestricted Proceeds. 6. City as Taxing Entity. The Paiiies acknowledge that the City is a Taxing Entity for purposes of receiving funds pursuant to this Agreement. 7. Notices. Except as otherwise specified in the Agreement, all notices to be sent pursuant to the Agreement shall be made in writing, and sent to the Parties aj their respective addresses specified on the signature pages to the Agreement or to such other address as a Paiiy may designate by written notice delivered to the other Paities. 8. Severability. If any term, provision, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect unless an essential purpose of this Agreement is defeated by such invalidity or unenforceability. 2

8 Attachment SITE MAP.;.. J ~- -!i I... Prepared by the Successor Agency to the Concord Redevelopment Agency LRPMP Description Address l. Concord A venue Site 1701 and 1711 Concord Ave. (0.95 acre, vacant) 2. Town Center II/Galindo StTeet Site 1753 Galindo Street (3. 1 acres, vacant),,.). Oak Street West Site Several (3.16 acres, vacant) Market Street (Pine Street Site) 1880 Market Street ( 1. 1 acres, vacant) APN l