HomeMy WebLinkAbout14-53 - Tax Transfer Agreement (Santa Ana/Colleen Island Annexation)RESOLUTION NO. 14-53
RESOLUTION OF THE CITY COUNCIL OF COSTA MESA, CALIFORNIA, APPLYING
THE "MASTER PROPERTY TAX TRANSFER AGREEMENT BETWEEN THE
COUNTY OF ORANGE AND THE CITY OF COSTA MESA" TO THE SANTA
ANAICOLLEEN ISLAND ANNEXATION
WHEREAS, California Revenue and Taxation Code Section 99 allows cities and
counties to adopt and approve property tax exchange agreements to set forth the
exchange of such revenues following the addition to a city of previously unincorporated
territory; and
WHEREAS, in October 1980, the City of Costa Mesa ("City") and the County of
Orange ("County") entered into the "Master Property Tax Transfer Agreement Between
the County of Orange and the City of Costa Mesa to Provide for Property Tax Exchange
in Areas Annexed by the City" ("Master Property Tax Transfer Agreement") that
determined the property tax allocation between the parties for existing and future
annexations of county islands to the City of Costa Mesa; and
WHEREAS, the Master Property Tax Transfer Agreement allocates the County's
general fund portion of the 11% basic levy property tax generated within the area to be
annexed as follows: 50.9527% to the City and 49.0473% to the County; and
WHEREAS, the Master Property Tax Transfer Agreement also requires the
parties to make a determination whether the property proposed for annexation is
developed/substantially developed or undeveloped depending upon its percentage of
residential development and public infrastructure; and
WHEREAS, the City has filed an application with the Local Agency Formation
Commission to annex approximately 14 acres of unincorporated territory referred to as
the Santa Ana/Colleen Island; and
WHEREAS, the proposed annexation area is generally bounded by 22nd Street to
the south, Donnie Road to the east, 23rd Street to the north, and Santa Ana Avenue to
the west; and
WHEREAS, the Santa Ana/Coleen Island is located within the County's former
Neighborhood Development and Preservation Project (NDAPP), a redevelopment area;
and
WHEREAS, the Successor Agency to the Orange County Development Agency
("Successor Agency") has incurred certain tax allocation bond indebtedness ("NDAPP
Indebtedness") and is required to transfer certain amounts to the County general fund
under Health and Safety Code Section 33670.9; (the "Bankruptcy Debt Obligation") both
of which are secured by and payable from property tax revenues; and
Resolution No. 14-53 Page 1 of 3
WHEREAS, the Successor Agency's Bankruptcy Debt Obligation shall end on
July 1, 2016; and
WHEREAS, the Successor Agency's obligation toward the NDAPP Indebtedness
shall be retired on or about September 1, 2023; and
WHEREAS, in order to compensate City, for its annexation of the Santa
Ana/Colleen Island until the NDAPP indebtedness has been fully retired and the
bankruptcy debt obligation expires, the City shall receive an annual payment of
$8,776.67 until such time as the property tax revenues are no longer needed for these
obligations; and
WHEREAS, the County staff and the City staff recommend concurrent
resolutions be adopted and approved by their respective governing bodies to apply the
Master Property Transfer Agreement to the Santa Ana/Colleen Island.
NOW, THEREFORE, BE IT RESOLVED that
1. Beginning in FY 2015-16 and upon the City's annexation of the Santa
Ana/Colleen Island, the City shall receive an annual payment from the County
of $8,776.67 until the bond debt repayment for the Santa Ana/Colleen area is
completed.
2. Upon payment in full of the County's NDAPP indebtedness and fulfillment of
the bankruptcy debt obligation the property tax transfer will revert to the ratio
specified in the Master Property Tax Agreement 80-1969 of 50.9527% to the
City and 49.0473% to the County. These proportional shares shall remain as
the allocation of tax revenues between the City and the County for all years
after the bond debt is repaid with respect to the Santa Ana/Colleen Island,
unless the City and County agree by written resolution to adjust the allocation
proportions.
3. Upon payment in full of the County's NDAPP indebtedness and fulfillment of
the bankruptcy debt obligation, the City will receive 100% of the Structural
Fire Fund generated in the annexed area.
BE IT FURTHER RESOLVED that in accordance with Section 6(a) of the Master
Property Transfer Tax Agreement, the Santa Ana/Colleen Island is determined to be
developed/substantially developed because at least seventy-five percent of the
subdivided lots have residential structures.
PASS
'W_,WOPTED this 2nd day of September, 2014.
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2,01K1iglleiimer,yr,ty of Costa Mesa
Resolution No. 14-53 Page 2 of 3
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ATTEST:
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Brenda Green,
City Clerk, City of Costa Mesa
STATE OF CALIFORNIA)
COUNTY OF ORANGE )ss
CITY OF COSTA MESA)
APPROVE AS TO FORM:
Thomas Duan ,
City Attorney, City of Costa Mesa
I, BRENDA GREEN, City Clerk and ex -officio Clerk of the City Council of the City
of Costa Mesa, hereby certify that the above Council Resolution Number 14-53 was
duly passed and adopted by the City Council of the City of Costa Mesa at a regular
meeting held on the 2nd day of September, 2014, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: Genis, Leece, Monahan, Mensinger, Righeimer
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
IN WITNESS WHEREOF, I have hereby set my hand and affixed the Seal of the
City of Costa Mesa this 3rd day of September, 2014.
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Brenda G reen,Lbity Clerk
Resolution No. 14-53 Page 3 of 3