Agmt82 SUHSD RDA RE-Redevelopment Project Area No 2

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BOARD OF TRUSTEES Sequoia Union High School District Richard W.Durst Helen Hausman John C. Heyeck Rosemary Smith JAMES AVENUE, REDWOOD CITY, CALIFORNIA 94062 Timothy F.Wellings,Jr. Administrative Offices (415) 869-1412 MERLE D. FRUEHLING Acting Superintendent MEMORANDUM OF UNDERSTANDING The Redevelopment Agency of the City of Redwood City (hereinafter referred to as "Agency") and the Sequoia Union High School District (hereinafter referred to as "District") hereby agree to the following: Redwood City is proposing a redevelopment project entitled "Redwood City Re- development Project Area No. 2." It is recognized, however, that Redwood City has no desire to divert resources away from other local government agencies to which they would otherwise be entitled, nor is it the desire of Redwood City to have either the City or its Redevelopment Agency act in such a manner as to create hardship upon any other governmental agency. Yet it is also recognized that the basic structuring of public finance in California is potentially sub- ject to unforeseen changes of state law which may interface with the then cur- rent activities of the redevelopment project in such a way as to work a severe financial hardship on one or more local government entities. Therefore, in re- turn for the District's agreeing not to contest the Agency's establishment of this redevelopment project, the Agency agrees as follows: If school finance laws change in a manner so as to cause District to lose re- venue because of the existence of the redevelopment project and tax increment financing, such losses shall become debts of the Agency and such debts shall be repaid by Agency as set forth below. The Agency shall not incur any addi- tional debt until a mutually agreed upon payment schedule for reimbursing the District is developed. The payment schedule will take into consideration the degree of financial impact of the payment schedule on both the school district and the rest of the community. If an agreement cannot be reached on the repay- ment schedule, an arbitration panel will be convened to reach a binding agree- ment regarding the payments. The panel shall consist of a representative selected by the district affected; a representative selected by the Redevelopment Agency; and a third panel member selected by the two representatives. The debt to the district shall be paid by the agency according to the payment schedule, using tax increment revenue and/or any other revenue source legally available to the agency for this purpose. The parties agree to continue working on the language regarding the MEMORANDUM OF UNDERSTANDING making it more specific. The original Memorandum of Under- standing signed by both parties remains in effect until another mutually agreed upon document is completed. Carlmont « Menlo-Atherton • Redwood ■ Sequoia • Woodside