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Home My WebLink About11-38 - City Elects to Participate in the Voluntary Alternative Redevelopment ProgramRESOLUTION NO. 11- 38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA DECLARING ITS INTENTION TO ENACT AN ORDINANCE WHEREBY THE CITY ELECTS TO PARTICIPATE IN THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM SET FORTH IN DIVISION 24, PART 1.9 OF THE CALIFORNIA HEALTH AND SAFETY CODE. WHEREAS, the Costa Mesa Redevelopment Agency, City of Costa Mesa, California ("Agency') is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City of Costa Mesa ("City'); and WHEREAS, the Agency adopted the Redevelopment Plan for the Costa Mesa Downtown Project ("Project Area") that was originally adopted by the City Council by Ordinance No. 73-74 on December 24, 1973, and thereafter amended by Ordinance No. 77-27 on July 5, 1977, Ordinance No. 80-22 on November 18, 1980, Ordinance No. 86-24 on December 15, 1986, Ordinance No. 94-15 on November 7, 1994, Ordinance Nos. 03-12 and 03-13 on November 17, 2003, and Ordinance No. 07-13 on June 19, 2007; and . WHEREAS, Assembly Bilis X1 26 and X1 27,.which are trailer bills to the 2011- 12 budget bills, . were approved by both houses of the Legislature, on June 15, 2011, signed by the Governor on June 28, 2011, and chaptered on June 29, 2011 (together, "2011 Redevelopment Legislation"); and WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the Health and Safety Code were added to the CRL by .the 2011 Redevelopment Legislation and such measures purport to have become. effective immediately; and WHEREAS, Part1.8 of the CRL ("Part 1.8") provides for the restriction of activities and authority of the Agency in the interim period prior to dissolution to certain "enforceable :obligations" and to actions required for the general winding up of affairs, preservation of assets, and certain other goals delineated in Part 1:8; and WHEREAS, Part 1.85 of the CRL ("Part 1.85") provides for the statewide dissolution .of all. redevelopment agencies, including the Agency, as of October 1; 2011, and provides that, thereafter, a successor agency will administer the enforceable obligations of the Agency and otherwise wind up the Agency's affairs, all subject to the review and approval by an oversight committee; and WHEREAS, Part 1.9 of the CRL ("Part 1.9") provides that a redevelopment agency may continue in operation if a city or county that includes a redevelopment agency adopts an ordinance agreeing to comply with and participate in the Voluntary Alternative Redevelopment Program established in Part 1.9 ("Program"); and WHEREAS, the City is aware that the validity, passage, and applicability of the 2011 Redevelopment Legislation are the subject of judicial challenge(s), including the action: California Redevelopment Association, et al v. Ana Matosantos, et al ("CRA Action"); and WHEREAS, on August 11, 2011 the California Supreme Court issued a stay as to Parts 1.85 and 1.9, but not as to Part 1.8, Sections 34161-34167' and WHEREAS, on August 17, 2011 the Supreme Court modified its stay affirming its order that Part 1.85 is stayed, that Part 1.9 is stayed except Section 34194(b)(2) is not stayed, and that Part 1.8, Sections 34161-34169.5, is not stayed, and therefore Sections 34161-34169.5 of Part 1.8 are effective laws; and WHEREAS, the dissolution of the Agency would be detrimental to the health, safety; and economic well-being of the residents of the City and cause irreparable harm to the community, because, among other reasons, the redevelopment activities and projects made possible, implemented, and funded by the Agency are highly significant and of enduring benefit to the community and the City, and are a criticalcomponent of its future; and WHEREAS, pursuant to Part 1.9, as a condition of the Agency's continued existence and operation of its community redevelopment agency, the City is required to make certain annual remittances to the County Auditor -Controller ("CAC") commencing with Fiscal Year 2011-2012 ("First Remittance") that is due in two equal installments on January 15, 2012 and May 15, 2012; and WHEREAS, the City expects it will have sufficient moneys and revenues to fund an amount equal to the City's payment of the First Remittance and further expects to have sufficient moneys and revenues to fund the subsequent fiscal years' remittances required by Part- 1.9; and WHEREAS, the City's needs are such that it can commit to spend the funds received from the Agency pursuant to the Agreement to Transfer Tax Increment (defined below) "for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals"; and WHEREAS, the. City intends to adopt the ordinance required by Part 1.9, in order to allow the Agency to continue in operation and performing its functions ("Ordinance"); and WHEREAS, the City intends to adopt the Ordinance and desires to adopt this Resolution as a first step thereto, albeit this resolution is non-binding pursuant to Part 1.9 and may be subject to the Supreme Court's stay as set forth hereinafter; and WHEREAS, the City and Agency desire to enter into an agreement pursuant to CRL Section 34194.2 whereby the Agency shall make an initial transfer of a portion of its tax increment to the City in an amount equal the First Remittance, and thereafter to transfer amounts of tax increment equal to any subsequent remittance that the City is required to make to the CAC pursuant to the City's participation in the Program ("Agreement to Transfer Tax Increment"); and WHEREAS, the City Council, by the adoption of this Resolution, does not represent, disclaim, or take any position whatsoever on the issue of the validity of the 2011 Redevelopment Legislation, but rather the Agency seeks to comply with the Constitution and laws of the State of California, including the 2011 Redevelopment Legislation, in order to preserve the ability of the Agency to continue to operate and perform its obligations and thereby benefit the community; and WHEREAS, the City has duly considered all other related matters and has determined that the City's participation in the Program is in the best interests of the City, and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. NOW, THEREFORE, THE CITY COUNCIL OF THE .CITY OF COSTA MESA DOES RESOLVE AS FOLLOWS: Section 1. The foregoing Recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. Pursuant to CRL Section 34193(b), the City hereby expresses its intent to adopt the Ordinance to comply with Part 1.9. This resolution is that "nonbinding resolution of intent" referred to in CRL Section 34193(b) and shall be interpreted and applied in all respects in accordance with such section and Part 1.9, to the fullest extent permitted by law provided however the City Council acknowledges the pending CRA Action and to the extent the City is not authorized to cause this Resolution to be effective at this time, then this Resolution shall be effective upon order of a court of competent jurisdiction and/or upon a determination that the California Supreme Court, or other court of competent jurisdiction, has made a final determination that AB X1 27 are valid and enforceable. - Section 3. On or before October 1, 2011, the City Manager is hereby authorized. and directed to notify the CAC, the State Department of Finance, `and the State Controller's Office concerning this Resolution in accordance with Section 34193(b). Section 4.. The City Clerk shall certify to the adoption of this Resolution. 1 1 1 1 PASSED AND ADOPTED this 6th day of September 2011. ATTEST: J ie Folcik, City Clerk Gary Monahan Mayor APPROVED AS TO FORM: Thom Du , Ci Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that foregoing Resolution No. 11-38 was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 6th day of September, 2011, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: MONAHAN, RIGHEIMER, LEECE. NOES: COUNCIL MEMBERS: NONE. ABSENT: COUNCIL MEMBERS: BEVER, MENSINGER. IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 7th day of September, 2011. JULIV FOLCIK, CITY CLERK (SEAL) 1