HomeMy WebLinkAboutR-9592 Negotiated Exchange of Property Tax Revenue and Annual Tax Increment with SLO County – Dalidio Annexation, 205 Dalidio Drive – SLO County Annexation 69RESOLUTION NO.9592 (2004 Series)
A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO
ACCEPTING A NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE AND
ANNUAL TAX INCREMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO
AND THE CITY OF SAN LUIS OBISPO FOR THE DALIDIO ANNEXATION
AT 2005 DALIDIO DRIVE; SLO COUNTY ANNEXATION #69
(CITY FILE # ANNEX 108-02)
WHEREAS, in the case of a jurisdictional change which will alter the service area or
responsibility of a local agency, Revenue and Taxation Code Section 99(b) requires that the
amount of property tax revenue to be exchanged, if any, and the amount of annual tax increment
to be exchanged among the affected local agencies shall be determined by negotiation; and
WHEREAS, when a city is involved, the negotiations are conducted between the City
Council and the Board of Supervisors of the County; and
WHEREAS, Revenue and Taxation Code Section 99(b) requires that each local agency,
upon completion of negotiations, adopt resolutions whereby said local agencies agree to accept
the negotiated exchange of property tax revenues, if any, and annual tax increment and requires
that each local agency transmit a copy of each such resolution to the Executive Officer of the
Local Agency Formation Commission; and
WHEREAS, no later than the date on which the certificate of completion of the
jurisdictional change is recorded with the County Recorder, the Executive Officer shall notify the
County Auditor of the exchange of property tax revenues by transmitting a copy of said
resolution to him and the County Auditor shall therefore make the appropriate adjustments as
required by law; and
WHEREAS, the City of San Luis Obispo (City) and the County of San Luis Obispo
(County) have previously agreed to a property tax exchange methodology pursuant to Joint
Resolution No. 01-96 which provides that in the case of undeveloped property, all of the "base"
property tax revenues will be retained by the County, with incremental property tax revenues to
be apportioned between the County and City as follows: in the case of land pre -zoned for non-
residential uses (such as retail, offices or manufacturing), the County will receive all of the
incremental property tax revenues; and in the case of land pre -zoned for residential uses, the
County will receive 66% of the incremental property tax revenues it would otherwise have
received from the Tax Rate Area, and the City will receive the remaining 34%.
WHEREAS, the negotiations have taken place concerning the transfer of property tax
revenues and annual tax increment between the County and the City pursuant to Section 99(b) for
the jurisdictional change designated as Annexation No. 69 to the City (Dalidio Annexation); and
R 9592
Resolution No. 9592 (2004 Series)
Page 2
WHEREAS, the representatives of the negotiating parties have negotiated the exchange
of property tax revenue and annual tax increment between such entities as hereinafter set forth;
and
WHEREAS, it is in the public interest that such negotiated exchange of property tax
revenues and annual tax increment be consummated.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo, as follows:
The recitals set forth above are true, correct, and valid.
2. The City agrees to accept the following negotiated exchange of base property tax
revenues and annual tax increment:
(a) No base property tax revenue shall be transferred from the County to the
City.
(b) Because the property contains 56.8 acres (94.51%) of developable land to
be pre -zoned CommerciallRetail and Business Park and 3.3 acres of
developable land (5.49%) to be pre -zoned Residential, a blended rate of
1.87% (5.5% of the 34% normally allowed for property pre -zoned
Residential) of the annual property tax increment that would otherwise be
allocated to the County shall be transferred from the County of San Luis
Obispo to the City of San Luis Obispo..
(c) Based on the County's current apportionment from the applicable Tax
Rate Area of 37.62108% (before allocations to the Educational Revenue
Augmentation Fund), this results in an apportionment to the City of
0.7023% of the incremental property tax revenues.
(d) If development of the open space area of the site is ever pursued, then the
County reserves the right to renegotiate with the City regarding a revised
formula for the property tax increment.
3. Upon receipt of a certified copy of this resolution and a copy of the recorded
certificate of completion, the County Auditor shall make the appropriate
adjustments to property tax revenues and annual tax increments as set forth above.
4. The City Clerk is authorized and directed to transmit a certified copy of the
resolution to the Executive Officer of the San Luis Obispo Local Agency
Formation Commission, who shall then distribute copies in the manner prescribed
by law.
l
Resolution No. 9592 (2004 Series)
Page 3
On motion of Council Member Ewan, seconded by Vice Mayor Schwartz, and on the
following roll call vote:
AYES: Council Member Ewan, Vice Mayor Schwartz and Mayor Romero
NOES: Council Member Mulholland
ABSENT: Council Member Settle
the foregoing resolution was passed and adopted on July 7, 2004.
Mayor David F. Romero
ATTEST:
C�
lane Reynolds . .C.
Deputy City Cle
APPROVED AS TO FORM:
JonathZP. Lowell
City Attorney
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