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HomeMy WebLinkAbout11-09 Electing to Comply with and Participate in the Voluntary Alternative Redevelopment ProgramORDINANCE NO. 11-09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ELECTING TO COMPLY WITH AND PARTICIPATE IN THE VOLUNTARY ALTERNATIVE REDEVELOPMENT . PROGRAM CONTAINED 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, AB X1 26 and .AB 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, Part 1.8 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 critical component of its future; and WHEREAS, 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") pursuant to Chapter 3 of -Part 1.9, beginning with FY 2011-12 ("First Remittance"), to be paid in two equal installments on January 15, 2012 and May 15, 2012; and WHEREAS, the City will have sufficient moneys and revenues to fund an amount equal to the City's payment . of the First Remittance and 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", including but not limited to payment for the land for and/or installation and/or construction of public improvements, better and more advantageous use of land and a reduction of incompatible land uses in the Project Area, improvement or replacement of obsolete and/or deteriorating commercial and residential structures. improvement of disadvantageous parcelization pattern, improvement of defective or hazardous traffic conditions and infrastructure, improvement of public facilities; and elimination of blight; and WHEREAS, the City and Agency desire to enter into an agreement pursuant to new CRL Section 34194.2, whereby the Agency will 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 each and all subsequent fiscal years' remittances 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, due to and based on the stay issued by the Supreme Court if, as and when this Ordinance is adopted the City intends that it become effective only upon the later to occur of: (i) thirty (30) days after the date of the final passage and adoption hereof, or (ii) 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; and WHEREAS, the City is the lead agency concerning this Ordinance pursuant to the California Environmental Quality Act (codified as Public Resources Code Sections 21000 et seq.) ("CEQA") and the State CEQA Guidelines; and WHEREAS, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines Section 15378 (b)(4) because such authorization is not considered a project subject to CEQA review because the City's First Remittance and each subsequent years' remittances are government funding mechanisms and fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant environmental impact; and WHEREAS, while the City currently intends to make the City's First Remittance and all subsequent years' remittances under the Program under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination by the Supreme Court (or other court(s)) that AB IX 26 and AB 1 X 27, all or parts thereof, are constitutional or unconstitutional; and WHEREAS, the City reserves the right, regardless of any community remittance made under the Program pursuant to this Ordinance, to challenge the legality of AB 1X 26 and AB 1 X 27; and WHEREAS, in connection with the stay issued by the California Supreme Court in the CRA Action on the effectiveness of the Program's payment obligation of AB 1 X 26 and AB 1X 27, the City shall not be obligated to make the City's First Remittance and each subsequent years' remittances for the duration of such stay or other court order; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred; 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 ORDAIN AS FOLLOWS: Section 1. The foregoing Recitals are true and correct and a substantive part of this Ordinance. Section 2. The City hereby finds that (i) the dissolution of the Agency would be detrimental and cause irreparable harm to the community and to the health, safety, and economic well-being of the citizens of the City, and (ii) the types of. 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 critical component of its future. Section 3. The City hereby commits to spend those funds received under the Agreement to Transfer Tax Increment or otherwise pursuant to CRL Section 34194.2 "for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals" or as otherwise determined by the courts or subsequent law and in accordance with the laws of the United States and the State of California, all as applicable. Section 4. The City hereby ordains that the City shall comply with the Constitution and the laws of the State of California, including Part 1.9, including the determination of remittance amounts, appeal rights in relation thereto, and the making of the remittances referred to in CRL Section 34194(b) and (c) at the times and in the manner .described in Part 1.9. This Ordinance is that ordinance referred to in CRL Section 34193 and shall be interpreted and applied in all respects so as to comply with Part 1.9, to the fullest extent permitted by law. Section 5. On or before November 1, 2011; the City's Chief Executive Officer is hereby authorized and directed to notify the County Auditor -Controller, the State Controller's Office, and the State Department of Finance that the City agrees to comply with the provisions of Part 1.9 as provided under Section 34193, such notice to be in accordance with CRL Section 34193.1. Section 6. The City's remittances to the County Auditor -Controller made pursuant to Part 1.9 may be paid from any legally available funds of. the City not otherwise obligated for other uses in accordance with Section 34194.1. Nothing herein is intended or shall be interpreted to require any payments or impose any financial or other obligation of the City other than in accordance with the Constitution and laws of the State of California, including Part 1.9. Section 7. The City Council determines that approval of this Ordinance is exempt from CEQA, pursuant to CEQA Guidelines Section 15378 (b)(4), because such approval is not considered a project subject to CEQA review; the commitment to make the remittance payments is a government funding mechanism and fiscal activity that does not involve any commitment to any specific project that may result in a potentially significant environmental impact. Section 8. The City Council hereby authorizes and directs that a Notice of Exemption shall be filed with the Clerk of the Board of Supervisors of the County of Orange, California, within five (5) working days following the date of adoption of this Ordinance. Section 9. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at 77 Fair Drive, Costa Mesa California 92628. The custodian for these records is the City Clerk. Section 10. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this,end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. Section 11. This Ordinance shall become effective upon the later to occur of: (i) thirty (30) days after the date of the final passage and adoption hereof, or (ii) upon order of a court of competent jurisdiction and/or a decision or order from the California Supreme Court, or other court of competent jurisdiction, that the provisions of AB X1 27 are valid and enforceable. Section 12. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within fifteen (15) days of adoption in a newspaper of general -circulation printed and published within the City, and shall post a certified copy, of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. PASSED AND ADOPTED this 20th day of September, 2011. ATTEST: Q " _') -, 4 � �/" JuA Folcik, City Clerk _.. ( /11� :D Gary Monahan ayor APPROVED AS TO FORM: Thomas Du e, Eity 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 the above and foregoing Ordinance No. 11-09 was duly introduced for first reading at a regular meeting of the City Council held on the 6th day of September 2011, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the 20th day of September, 2011, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: MONAHAN, RIGHEIMER, BEVER, LEECE, MENSINGER NONE NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 21St day of September, 2011. JLJe1E FOLCIK, CITY CLERK (SEAL) I hereby certify that the above and foregoing is the original of Ordinance No. 11-09 duly passed and adopted by the Costa Mesa City Council at the regular meeting held September 26, 2011, and that Summaries of the Ordinance were published in the Newport Beach -Costa Mesa Daily Pilot on September 14, 2011 and September 28, 2011. (iWLCIK, 61TY CLERK (SEAL)