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CDA Resolution 89-10RESOLUTION NO. 89 - 10
A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF
THE CITY OF GILROY AUTHORIZING EXECUTION OF A
FISCAL AGREEMENT BETWEEN THE DEVELOPMENT AGENCY AND
THE GAVILAN COMMUNITY COLLEGE DISTRICT
WHEREAS, the Community Development Agency of the City of
Gilroy (the "Agency"), and the Gavilan Community College
District (the "District") desire to enter into a Fiscal
Agreement (the "Agreement") the terms of which are set forth
in the Agreement attached hereto as Exhibit A and by this
reference incorporated herein; and
WHEREAS, the Agency has prepared the City of Gilroy
Community Redevelopment Plan (the "Plan") and has submitted
the Plan to the City of Gilroy (the "City") for
consideration and potential adoption in accordance with the
procedures and requirements of the California Community
Redevelopment Law (the "CRL") (Health and Safety Code Section
33000 e__t. seq.); and
WHEREAS, the Plan calls for redevelopment of a designated
project area (the "Project Area") within the City pursuant to
the CRL; and
WHEREAS, the parties have determined that the adoption by
the City and implementation by the Agency of the Plan would,
but for the agreements set forth in the Agreement, cause a
financial burden or detriment to the District in that
redevelopment of the Project Area will increase demand for
services provided by the District to Project Area residents.
NOW, THEREFORE, ~BE IT RESOLVED that the Agency hereby
finds and determines~ based on evidence provided at this
meeting, that the adoption of the Plan by the City and
implementation by th~ Agency would, but for the agreements set
forth in the Agreement, cause a financial burden or detriment
to the District in t~at redevelopment of the Project Area will
-1-
RESOLUTION NO. 89 - 10
increase demand for services provided by the District to
~'ojec~ ArEa residents.
BE IT FURTHER RESOLVED that the Agency hereby approves
the Agreement described above and authorizes and directs the
Vice Chairperson to execute, on behalf of the Agency, the
Agreement in substantially the form set forth in the attached
Exhibit A, with such changes therein as the Vice Chairperson
may approve, such approval to be conclusively evidenced by the
execution and delivery of the Agreement by the Vice
Chairperson.
Passed and adopted this 13th day of June, 1989, by the
following vote:
AYES: AGENCYMEMBERS: HALE, KLOECKER, MUSSALLEM, PAL~ERLEE
and VALDEZ.
NOES: AGENCYMEMBERS: None
ABSENT: AGENCYMEMBERS: GAGE and HUGHAN
APPROVED:
L~rry ~u~s~llem, Vice Chairperson
~sanne Stei~m~t~, Agenc~cretary
06/09/89
#030F/B49702
RESOLUTION NO. 89 -
-2-
EXHIBIT "A"
FISCAL AGREEMENT
REGARDING GILROY COMMUNITY
REDEVELOPMENT PROJECT
THIS AGREEMENT (the "Agreement") is made and entered into
this 13th~ay of June , 1989, by and between the
COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF GILROY (the
"Agency"), and the GAVILAN CO~UNITY COLLEGE DISTRICT (the
"District"), on the basis of the following facts,
understandings and intentions of the parties:
RECITALS
A. The Agency is in the process of preparing a proposed
redevelopment plan (the "Redevelopment Plan") for adoption bv
the City Council of the City of Gilroy for the Gilroy
Community Redevelopment Project (the "Project") pursuant to
the California Community Redevelopment Law (Health and Safety
Code, Section 33000, et seq.).
B. The proposed Redevelopment Plan contains provisions
for the distribution and allocation of property tax revenues
derived from property located within the area covered by the
Redevelopment Plan (the "Project Area") and allocated to the
Agency pursuant to California Health and Safety Code Section
33670(b) (the "Tax Increment Revenue").
C. Section 33401 of the Community Redevelopment Law
provides that a redevelopment agency may pay to any taxing
-1-
agency any amounts of money which, in the Agency's
determination, are necessary and appropriate to alleviate any
financial burden or detriment caused to such taxing agency by
a redevelopment project.
D. The Agency has determined that because of the
increase in services to be provided by the District due to the
increased development caused by the Project, certain actions
as set forth below are necessary to alleviate the burden and
detriment or potential burden and detriment to the District.
E. Pursuant to Health and Safety Code Section
33676(a) (1), the District, by appropriate resolution, has
heretofore made the election to receive future property tax
revenues generated in the Project Area attributable to
increases in the rate of tax imposed for the benefit of the
District after the tax year in which the ordinance adopting
the Redevelopment Plan becomes effective. This Agreement is
not intended in any way to affect the election made by the
District pursuant to Health and Safety Code Section
33676(a) (1).
F. As permitted by Health and Safety Code Section 33676,
this Agreement is entered into by the District in lieu of the
election described in Health and Safety Code Section
33676(a) (2), as more fully set forth in Section 7 below.
THEREFORE, the Agency and the District agree as follows:
AGREEMENTS
Section 1. Payments To Alleviate Financial Burden
-2-
Subject to the limitations of Section 5 below, the Agency
shall make payments to the District in accordance with
following schedule:
Date
May 1, 1996
May 1, 1997
May 1, 1998
May I, 1999
May 1, 2000
May 1, 2001
Amount
$500,000
120,000
120,000
120,000
120,000
1,950,000
The payments by the Agency shall be made from the sources
described in Section 2 below, and shall be deposited in the
District Fund described in Section 4 below for use as set
forth in Section 4.
Section 2. Method of Payment
Agency payments to the District pursuant to Section 1
above may be made from any lawful source of revenue available
to the Agency. It is anticipated, understood, and agreed by
the parties that:
(a) all or a substantial portion of the Agency's
payments may be made from the proceeds of tax allocation bonds
issued by the Agency pursuant to Health and Safety Code
Section 33640 et seq. and secured by Tax Increment
Revenue; and
(b) the interest on any such tax allocation bonds will be
exempt from federal income taxation pursuant to Section 103 of
-3-
the Internal Revenue Code of 1986, as amended, or a successor
statute (the "Code").
It is further expressly acknowledged that the provisions
of Sections 3 and 4 below have been agreed upon to permit the
timely, cost effective issuance of tax-exempt tax allocation
bonds so as to generate proceeds sufficient to meet the
Agency's payment obligations under this Agreement.
Section 3. Priority of Agency's Obligations
The obligation of the Agency to make any payment pursuant
to this Agreement shall be subordinate to the Agency's
obligation to make payments of principal, interest or other
amounts on or in connection with bonds, notes or other
indebtedness heretofore or hereafter issued by the Agency to
finance the implementation of the Redevelopment Plan. An
Agency obligation to make payments, pursuant to a
reimbursement agreement or similar agreement, to reimburse or
otherwise compensate a person or entity who is obligated to
make payments of principal, interest or other amount on bonds,
notes or other indebtedness issued by the Agency to finance
the implementation of the Redevelopment Plan, shall be deemed
to be an obligation in connection with such bonds, notes or
other indebtedness for purposes of this Agreement. The
District agrees to execute and acknowledge any other
documentation that may be necessary to give effect to this
Agreement, including, but not limited to, the subordination
provisions of this Section 3.
Section 4. Use of Funds
-4-
The District shall establish a capital fund (the
"District Fund") into which shall be deposited the payments
made by the Agency pursuant to Section 1 above. The District
shall use the payments made by the Agency and deposited in the
District Fund under this Agreement to make capital
improvements to, to lease, to construct, or to equip,
appropriate District facilities and improvements which benefit
residents and employees within or in proximity to the Project
Area. The District shall expend funds in the District Fund in
a manner that will preserve the tax-exempt status under the
Code of any tax allocation bonds issued by the Agency to
provide proceeds for making payments to the District under
this Agreement, as more fully set forth in Section 2 above.
To that end, the District shall comply with applicable
requirements of the bond resolution or trust indenture
executed in connection with the issuance of any tax-exempt tax
allocation bonds and applicable requirements imposed by Agency
bond counsel.
Section 5. Limitations on Payment
Notwithstanding any other provision of this Agreement, no
payments shall be made to the District by the Agency:
(a) which would exceed the amount, annually, that the
District would have otherwise received from property taxes
from the Project Area had the Redevelopment Plan not been
adopted; or
(b) the receipt of which would cause the District to
violate its expenditure limitations under Article XIII-B of
-5-
the California Constitution as certified by the District to
the State of California pursuant to State law, regulations and
State Department of Education Administrative procedure; or
(c) which would be contrary to the provisions of Section
33401 of the Community Redevelopment Law or violate any other
provision of the Community Redevelopment Law or the laws of
the State of California. ·
If the operation of subsections (a) or (c) above would
prevent the payment in full of any amount scheduled for
payment pursuant to Section 1 above, the parties shall meet in
good faith, on or about the date such payment is scheduled to
be made, to consider and approve an alternative payment
schedule that will have substantially the same economic effect
as the payment schedule set forth in Section 1, consistent
with the limitations of subsections (a) and (c). The approved
alternative payment schedule shall be evidenced by an
amendment to this Agreement.
Any excess amounts under subsection (b) above shall be
retained by the Agency for distribution, in the Agency's sole
discretion, to other taxing entities or for the purposes of
paying indebtedness incurred by the Agency in carrying out the
Project.
Section 6. Indebtedness of Agency
The payments to be made pursuant to this Agreement shall
constitute an indebtedness of the Agency incurred in carrying
out the Project and a pledging of tax increments from the
Project to repay such indebtedness under the provisions of
-6-
Article XVI, Section 16 of the California Constitution and
under the California Community Redevelopment Law.
Section 7. Waiver of Section 33676(a) (2) Election
The parties agree that this Agreement supersedes any
election heretofore or hereafter made or purported to be made
by the District pursuant to Health and Safety Code Section
33676(a) (2); that any such-election or purported election
shall be null and void and of no further force or effect; and
that the District shall receive no payment of Tax Increment
Revenue other than as expressly provided in this Agreement or
as authorized by the District's separate election to receive
the amount specified in Health and Safety Code Section
33676(a) (1), which separate election shall not be modified by
the terms of this Agreement.
The District shall take such actions as are reasonably
necessary to accomplish the waiver of its election under
Health and Safety Code Section 33676(a) (2) and to notify the
Auditor of the County of Santa Clara or such other
responsible County officials as may be appropriate that the
District has entered into this Agrement in lieu of its
election to receive the amounts permitted by Health and Safety
Code Section 33676(a) (2).
In the event the County of Santa Clara by error or
otherwise makes a payment to the District of funds the
District has waived under Section 33676(a) (2), the District
shall receive and hold the funds in trust for the Agency. The
District shall pay the funds to the Agency and notify the
-7-
County of Santa Clara in writing that the funds have been
paid to the Agency pursuant to this Section 7. Upon receipt
of the funds, the Agency shall immediately notify the County
of Santa Clara in writing of its receipt of the funds from
the District pursuant to this Section 7.
Section 8. No Contest of Redevelopment Plan
(a) The District acknowledges and agrees that the
payments to be provided and the other fiscal mitigation
measures to be undertaken by the Agency pursuant to this
Agreement will effectively eliminate any financial burden or
detriment to the District that might otherwise be caused by
the adoption and implementation of the Redevelopment Plan. In
consideration of the undertakings of the Agency described in
this Agreement, the District shall forego any right or remedy
it may have in law or equity to contest the preparation,
adoption or validity of the Redevelopment Plan (including
without limitation any right or remedy pursuant to the
California Environmental Quality Act), and the redevelopment
program to be undertaken pursuant to the Redevelopment Plan.
The District further declares its support for the efforts of
the Agency in connection with preparation, adoption and
implementation of the Redevelopment Plan, and agrees to
support Plan adoption in the fiscal review committee
proceedings.
(b) The Agency recognizes the District's agreement not to
contest the Redevelopment Plan, as described in subsection (a)
above, as good and legal consideration.
-8-
Section 9. Term of Agreement
This Agreement shall be effective as of the date that the
ordinance enacted by the City Council of the City of Gilroy
adopting the Redevelopment Plan for the Project becomes
effective and shall terminate upon the earliest of (a) the
expiration of the Redevelopment Plan, (b) the satisfaction of
the Agency's payment obliggtions under this Agreement, or (c)
the filing of an action in a court of competent jurisdiction
or an administrative action by any person or entity
challenging the adoption of the Redevelopment Plan or any of
the proceedings in connection therewith. In the event such a
lawsuit is filed or such an administrative action commences or
is taken, the Agency shall not be required to pay the District
any amounts due under this Agreement until resolution of such
lawsuit or administrative action; provided, however, that in
the event such lawsuit or administrative action is finally
determined to uphold the validity of the Redevelopment Plan,
the Agency shall pay to the District any amounts due to the
District pursuant to this Agreement which become due during
the pendency of such lawsuit or administrative action. Such
payment shall be due to the District as soon as possible after
such determination. Following termination, neither of the
parties shall have any rights or obligations under this
Agreement.
Section 10. Obligation to Defend Agreement
In the event litigation is initiated attacking the
validity of this Agreement, each party shall in good faith
-9-
defend and seek to uphold the Agreement. The District further
agrees to indemnify and hold the Agency harmless in the event
that any person or entity not a party to this Agreement (a
"third party") seeks to recover from the Agency funds that
such third party claims were unlawfully paid to the Districts
pursuant to this Agreement.
Section 11. State Law
This Agreement, and the rights and obligations of the
parties hereto, shall be constructed and enforced in
accordance with the laws of the State of California.
Section 12. Attorneys' Fees
In any action which the Agency or the District brings to
enforce its rights hereunder, the unsuccessful party shall pay
all costs incurred by the prevailing party, including
reasonable attorneys' fees.
Section 13. Successors and Assigns
This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs,
successors and assigns.
Section 14. Entire Agreement
This Agreement constitutes the entire agreement of the
parties with respect to the subjects covered herein.
-10-
IN WITNESS WHEREOF, the Agency and the District have
executed this Agreement as of the date first above written.
Attest:
COMMUNITY DEVELOPMENT
AGENCY OF THE CITY OF
GILROY
Susanne Steinmetz,
Agency Secretary
By:
Larry Mussa!em,
Agency Vice Chair
Attest:
GAVILAN COMMUNITY
COLLEGE DISTRICT
By:
06/09/89
#B027A/B49702
-11-
FISCAL AGREEMENT
REGARDING GILROY COMMUNITY
REDEVELOPMENT PROJECT
THIS AGREEMENT (the "Agreement") is made and entered into
this 13thday of June , 1989, by and between the
CO~UNITY DEVELOPMENT AGENCY OF THE CITY oF GILROY (the
"Agency"), and the GAVILAN CO~UNITY COLLEGE DISTRICT (the
"District"), on the basis of the following facts,
understandings and intentions of the parties:
RECITALS
A. The Agency is in the process of preparing a proposed
redevelopment plan (the "Redevelopment Plan") for adoption bv
the City Council of the City of Gilroy for the Gilroy
Community Redevelopment Project (the "Project") pursuant to
the California Community Redevelopment Law (Health and Safety
Code, Section 33000, et seq.).
B. The proposed Redevelopment Plan contains provisions
for the distribution and allocation of property tax revenues
derived from property located within the area covered by the
Redevelopment Plan (the "Project Area") and allocated to the
Agency pursuant to California Health and Safety Code Section
33670(b) (the "Tax Increment Revenue").
C. Section 33401 of the Community Redevelopment Law
provides that a redevelopment agency may pay to any taxing
-1-
agency any amounts of money which, in the Agency's
determination, are necessary and appropriate to alleviate any
financial burden or detriment caused to such taxing agency by
a redevelopment project.
D. The Agency has determined that because of the
increase in services to be provided by the District due to the
increased development caused by the Project, certain actions
as set forth below are necessary to alleviate the burden and
detriment or potential burden and detriment to the District.
E. Pursuant to Health and Safety Code Section
33676(a) (1), the District, by appropriate resolution, has
heretofore made the election to receive future property tax
revenues generated in the Project Area attributable to
increases in the rate of tax imposed for the benefit of the
District after the tax year in which the ordinance adopting
the Redevelopment Plan becomes effective. This Agreement is
not intended in any way to affect the election made by the
District pursuant to Health and Safety Code Section
33676(a) (1).
F. As permitted by Health and Safety Code Section 33676,
this Agreement is entered into by the District in lieu of the
election described in Health and Safety Code Section
33676(a) (2), as more fully set forth in Section 7 below.
THEREFORE, the Agency and the District agree as follows:
AGREEMENTS
Section 1. Payments To Alleviate Financial Burden
-2-
Subject to the limitations of Section 5 below, the Agency
shall make payments to the District in accordance with
following schedule:
Date
May 1, 1996
May 1, 1997
May 1, 1998
May I, 1999
May 1, 2000
May 1, 2001
Amount
$5O0,000
120,000
120,000
120,000
120,000
1,950,000
The payments by the Agency shall be made from the sources
described in Section 2 below, and shall be deposited in the
District Fund described in Section 4 below for use as set
forth in Section 4.
Section 2. Method of Payment
Agency payments to the District pursuant to Section 1
above may be made from any lawful source of revenue available
to the Agency. It is anticipated, understood, and agreed by
the parties that:
(a) all or a substantial portion of the Agency's
payments may be made from the proceeds of tax allocation bonds
issued by the Agency pursuant to Health and Safety Code
Section 33640 et seq. and secured by Tax Increment
Revenue; and
(b) the interest on any such tax allocation bonds will be
exempt from federal income taxation pursuant to Section 103 of
-3-
the Internal Revenue Code of 1986, as amended, or a successor
statute (the "Code").
It is further expressly acknowledged that the provisions
of Sections 3 and 4 below have been agreed upon to permit the
timely, cost effective issuance of tax-exempt tax allocation
bonds so as to generate proceeds sufficient to meet the
Agency's payment obligations under this Agreement.
Section 3. Priority of Agency's Obligations
The obligation of the Agency to make any payment pursuant
to this Agreement shall be subordinate to the Agency's
obligation to make payments of principal, interest or other
amounts on or in connection with bonds, notes or other
indebtedness heretofore or hereafter issued by the Agency to
finance the implementation of the Redevelopment Plan. An
Agency obligation to make payments, pursuant to a
reimbursement agreement or similar agreement, to reimburse or
otherwise compensate a person or entity who is obligated to
make payments of principal, interest or other amount on bonds,
notes or other indebtedness issued by the Agency to finance
the implementation of the Redevelopment Plan, shall be deemed
to be an obligation in connection with such bonds, notes or
other indebtedness for purposes of this Agreement. The
District agrees to execute and acknowledge any other
documentation that may be necessary to give effect to this
Agreement, including, but not limited to, the subordination
provisions of this Section 3.
Section 4. Use of Funds
-4-
The District shall establish a capital fund (the
"District Fund") into which shall be deposited the payments
made by the Agency pursuant to Section 1 above. The District
shall use the payments made by the Agency and deposited in the
District Fund under this Agreement to make capital
improvements to, to lease, to construct, or to equip,
appropriate District facilities and improvements which benefit
residents and employees within or in proximity to the Project
Area. The District shall expend funds in the District Fund in
a manner that will preserve the tax-exempt status under the
Code of any tax allocation bonds issued by the Agency to
provide proceeds for making payments to the District under
this Agreement, as more fully set forth in Section 2 above.
To that end, the District shall comply with applicable
requirements of the bond resolution or trust indenture
executed in connection with the issuance of any tax-exempt tax
allocation bonds and applicable requirements imposed by Agency
bond counsel.
Section 5. Limitations on Payment
Notwithstanding any other provision of this Agreement, no
payments shall be made to the District by the Agency:
(a) which would exceed the amount, annually, that the
District would have otherwise received from property taxes
from the Project Area had the Redevelopment Plan not been
adopted; or
(b) the receipt of which would cause the District to
violate its expenditure limitations under Article XIII-B of
-5-
the California Constitution as certified by the District to
the State of California pursuant to State law, regulations and
State Department of Education Administrative procedure; or
(c) which would be contrary to the provisions of Section
33401 of the Community Redevelopment Law or violate any other
provision of the Community Redevelopment Law or the laws of
the State of California. ·
If the operation of subsections (a) or (c) above would
prevent the payment in full of any amount scheduled for
payment pursuant to Section 1 above, the parties shall meet in
good faith, on or about the date such payment is scheduled to
be made, to consider and approve an alternative payment
schedule that will have substantially the same economic effect
as the payment schedule set forth in Section 1, consistent
with the limitations of subsections (a) and (c). The approved
alternative payment schedule shall be evidenced by an
amendment to this Agreement.
Any excess amounts under subsection (b) above shall be
retained by the Agency for distribution, in the Agency's sole
discretion, to other taxing entities or for the purposes of
paying indebtedness incurred by the Agency in carrying out the
Project.
Section 6. Indebtedness of Agency
The payments to be made pursuant to this Agreement shall
constitute an indebtedness of the Agency incurred in carrying
out the Project and a pledging of tax increments from the
Project to repay such indebtedness under the provisions of
-6-
Article XVI, Section 16 of the California Constitution and
under the California Community Redevelopment Law.
Section 7. Waiver of Section 33676(a) (2) Election
The parties agree that this Agreement supersedes any
election heretofore or hereafter made or purported to be made
by the District pursuant to Health and Safety Code Section
33676(a) (2); that any such~election or purported election
shall be null and void and of no further force or effect; and
that the District shall receive no payment of Tax Increment
Revenue other than as expressly provided in this Agreement or
as authorized by the District's separate election to receive
the amount specified in Health and Safety Code Section
33676(a) (1), which separate election shall not be modified by
the terms of this Agreement.
The District shall take such actions as are reasonably
necessary to accomplish the waiver of its election under
Health and Safety Code Section 33676(a) (2) and to notify the
Auditor of the County of Santa Clara or such other
responsible County officials as may be appropriate that the
District has entered into this Agrement in lieu of its
election to receive the amounts permitted by Health and Safety
Code Section 33676(a) (2).
In the event the County of Santa Clara by error or
otherwise makes a payment to the District of funds the
District has waived under Section 33676(a) (2), the District
shall receive and hold the funds in trust for the Agency. The
District shall pay the funds to the Agency and notify the
-7-
County of Santa Clara in writing that the funds have been
paid to the Agency pursuant to this Section 7. Upon receipt
of the funds, the Agency shall immediately notify the County
of Santa Clara in writing of its receipt of the funds from
the District pursuant to this Section 7.
Section 8. No Contest of Redevelopment Plan
(a) The District acknowledges and agrees that the
payments to be provided and the other fiscal mitigation
measures to be undertaken by the Agency pursuant to this
Agreement will effectively eliminate any financial burden or
detriment to the District that might otherwise be caused by
the adoption and implementation of the Redevelopment Plan. In
consideration of the undertakings of the Agency described in
this Agreement, the District shall forego any right or remedy
it may have in law or equity to contest the preparation,
adoption or validity of the Redevelopment Plan (including
without limitation any right or remedy pursuant to the
California Environmental Quality Act), and the redevelopment
program to be undertaken pursuant to the Redevelopment Plan.
The District further declares its support for the efforts of
the Agency in connection with preparation, adoption and
implementation of the Redevelopment Plan, and agrees to
support Plan adoption in the fiscal review committee
proceedings.
(b) The Agency recognizes the District's agreement not to
contest the Redevelopment Plan, as described in subsection (a)
above, as good and legal consideration.
-8-
Section 9. Term of Agreement
This Agreement shall be effective as of the date that the
ordinance enacted by the City Council of the City of Gilroy
adopting the Redevelopment Plan for the Project becomes
effective and shall terminate upon the earliest of (a) the
expiration of the Redevelopment Plan, (b) the satisfaction of
the Agency's payment obliggtions under this Agreement, or (c)
the filing of an action in a court of competent jurisdiction
or an administrative action by any person or entity
challenging the adoption of the Redevelopment Plan or any of
the proceedings in connection therewith. In the event such a
lawsuit is filed or such an administrative action commences or
is taken, the Agency shall not be required to pay the District
any amounts due under this Agreement until resolution of such
lawsuit or administrative action; provided, however, that in
the event such lawsuit or administrative action is finally
determined to uphold the validity of the Redevelopment Plan,
the Agency shall pay to the District any amounts due to the
District pursuant to this Agreement which become due during
the pendency of such lawsuit or administrative action. Such
payment shall be due to the District as soon as possible after
such determination. Following termination, neither of the
parties shall have any rights or obligations under this
Agreement.
Section 10. Obligation to Defend Agreement
In the event litigation is initiated attacking the
validity of this Agreement, each party shall in good faith
-9-
defend and seek to uphold the Agreement. The District further
agrees to indemnify and hold the Agency harmless in the event
that any person or entity not a party to this Agreement (a
"third party") seeks to recover from the Agency funds that
such third party claims were unlawfully paid to the Districts
pursuant to this Agreement.
Section 11. State Law
This Agreement, and the rights and obligations of the
parties hereto, shall be constructed and enforced in
accordance with the laws of the State of California.
Section 12. Attorneys' Fees
In any action which the Agency or the District brings to
enforce its rights hereunder, the unsuccessful party shall pay
all costs incurred by the prevailing party, including
reasonable attorneys' fees.
Section 13. Successors and Assigns
This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs,
successors and assigns.
Section 14. Entire Agreement
This Agreement constitutes the entire agreement of the
parties with respect to the subjects covered herein.
-10-
IN WITNESS WHEREOF, the Agency and the District have
executed this Agreement as of the date first above written.
Attest: COMMUNITY DEVELOPMENT
AGENCY OF THE CITY OF
GILROY
Susanne Steinmetz, 'arry ~us~alem,
Agency Secretary Agency Vice Chair
Attest:
GAVILAN COMMUNITY
COLLEGE DISTRICT
By:
06/09/89
#B027A/B49702
-11-
I hereby certify that the foregoing is a full, true and correct
copy of a resolution duly passed and adopted by the Community Development
Agency of the City of Gilroy, California, at a meeting thereof, held on the
13th day of June, 1989.
(Seal)