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HomeMy WebLinkAbout94-14 Downtown Redevelopment Project; Add Certain Time LimitationsORDINANCE NO. 94-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING SECTION 9.0 OF THE REDEVELOPMENT PLAN FOR THE COSTA MESA DOWNTOWN REDEVELOPMENT PROJECT IN ORDER TO AMEND OR ADD CERTAIN TIME LIMITATIONS IN ACCORDANCE WITH SECTION 33333.6 OF THE COMMUNITY REDEVELOPMENT LAW. WHEREAS, the Costa Mesa Redevelopment Agency (the "Agency") is a public body, corporate and politic, organized and existing under the Community Redevelopment Law, California Health and Safety Code Sections 33000, etseq. (the "Community Redevelopment Law"); and WHEREAS, the City Council of the City of Costa Mesa, California, (the "City Council") did duly pass and adopt Ordinance No. 73-44 on December 24, 1973, and did thereby adopt and approve the Redevelopment Plan for the Costa Mesa Downtown Redevelopment Project (the "Redevelopment Plan"); and WHEREAS, the Redevelopment Plan was amended by the City Council by Ordinance No. 77-27 which was duly passed and adopted on July 5, 1977, Ordinance No. 80-22 which was duly passed and adopted on November 1, 1980, and Ordinance No. 86-24 which was duly passed and adopted on December 15, 1986; and WHEREAS, Assembly Bill 1290, the Community Redevelopment Law Reform Act ("AB 1290"), which was enacted by the State of California and became effective on January 1, 1994, amended Section 33333.6 of the Community Redevelopment Law, which, as amended, requires that the City Council adopt an ordinance prior to December 31, 1994, imposing the time limitations mandated by Section 33333.6 upon certain activities carried out pursuant to the Redevelopment Plan; and WHEREAS, Section 33333.6(a) of the Community Redevelopment Law provides that the time limit on establishing loans, advances, and indebtedness set forth in the Redevelopment Plan shall not exceed twenty (20) years from the adoption of the Redevelopment Plan, or January 1, 2004, whichever is later, provided, however, that this limit shall not prevent the Agency from incurring debt to be paid from the Low and Moderate Income Housing Fund or establishing more debt in order to fulfill the Agency's housing obligations under Section 33413 of the Community Redevelopment Law; and WHEREAS, the Redevelopment Plan currently provides that no loan, advance, or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the Agency to finance in whole or in part the Redevelopment Project after November 17, 2025; and WHEREAS, Section 33333.6(b) of the Community Redevelopment Law provides that the effectiveness of the Plan shall terminate at a date which shall not exceed forty (40) years from the adoption of the Redevelopment Plan or January 1, 2009, whichever is later and that after the time limit on the effectiveness of the Redevelopment Plan, the Agency shall have no authority to act pursuant to the Redevelopment Plan except to pay previously incurred indebtedness and to enforce existing covenants, contracts, or other obligations; and WHEREAS, the Redevelopment Plan currently provides that, except for the nondiscrimination and nonsegregation provisions which shall run in perpetuity, the provisions of the Redevelopment Plan shall be effective and the provisions of the other documents formulated pursuant to the Redevelopment Plan may be made effective for forty-five (45) years from the date of adoption of the Redevelopment Plan by the City Council; and N WHEREAS, Section 33333.6(c) of the Community . Redevelopment Law requires that except as provided'in-subdivisions (g) and (h), of said Section 33333.6, the'Agency shall not pay indebtedness or receive property taxes pursuant to Section 33670 of the Community Redevelopment Law after. ten (10) years from the termination of the effectiveness of the Plan; and WHEREAS, the Redevelopment Plan may not contain an.explicit limitation on the Agency's ability to pay indebtedness or to receive property taxes pursuant to Section 33670 of the Community Redevelopment Law; and WHEREAS, Section 33333.6(e)(1) of the Community Redevelopment Law provides that unless the Plan contains all of the. limitations required by Section 33333.6 and each. of these limitations does not exceed applicable time limits established by Section -33333.6, the City Council, acting by ordinance on or before December 31, 1994, shall amend the Plan either to amend an existing time limit that exceeds the applicable timelimit established by this section, or to establish time limits that do not exceed the provisions of Section 33333.6(a), (b), and (c); and . WHEREAS, ..the time limits set forth. in the, Redevelopment Plan on the ability of the Agency to incur indebtedness and on the duration of the Redevelopment Plan may exceed those set forth in Section 33333.6 of the Community Redevelopment Law; and WHEREAS, Section 33333.6(e)(2) of the Community Redevelopment Law provides that the limitations established in this Ordinance, shall apply to the Redevelopment Plan as if the Redevelopment Plan had been amended to include those limitations; however, in adopting this Ordinance, neither the City Council nor the Agency is required. to comply with any provisions of the Community Redevelopment Law relating to the amendment of, redevelopment plans; and WHEREAS, as set forth in Section 33333.6(g) of the Community Redevelopment Law, the time limitations established in this Ordinance shall not be applied to limit allocation of taxes to an Agency to the extent required to eliminate project deficits created under Sections 33320.5(e), 33334.6(g), or 33487(d) of the Community Redevelopment Law, in accordance with the plan adopted pursuant thereto for the purpose of eliminating the deficits or to implement a replacement housing program pursuant to Section 33413 of the Community Redevelopment Law. In the event of a conflict between these limitations and the obligations under Section 33334.6 or to implement a replacement housing program pursuant to Section 33413, the City Council shall amend this Ordinance to modify the limitations to the extent necessary to permit compliance with the plan adopted pursuant to subdivision (g) of Section 33334.6 and to allow full expenditure of moneys in the Agency's Low and Moderate Income Housing Fund in accordance with Section 33334.3 or. to, permit implementation of the replacement housing program pursuant to Section 33413; and WHEREAS, as set forth in Section 33333.6(h) of the Community Redevelopment Law, the time limits established herein shall not be. construed- to affect the validity of any bond, indebtedness, or other obligation, including any mitigation agreement entered into pursuant. to Section 33401, authorized by the City Council, or the Agency pursuant to the Community Redevelopment Law, prior to January 1, 1994., nor shall the time limitations be construed to ,affect the right of the Agency to receive property taxes, pursuant to Section 33670, to pay the indebtedness or other obligation; and WHEREAS, Section 33333.6(i) of the Community Redevelopment Law provides that a redevelopment agency shall not pay indebtedness or receive property taxes pursuant to Section 33670, with respect to a redevelopment plan adopted prior to January 1, 1994, .after the date identified in subdivision (c) or the date identified in the redevelopment plan, whichever is earlier, except as provided in paragraph (2) of subdivision (f) or in subdivision (h); .and WHEREAS, Section 33333,60) of the Community Redevelopment Law provides that the Legislature finds and declares that the amendments made to . Section 33333.6 by AB 1290 are intended to add limitations to the law on and after January 1, 1994, and are not intended to change or express legislative intent with respect to the law. prior to that date, and further that it is not the intent of the Legislature to affect the merits of any litigation regarding the ability of a redevelopment agency to sell bonds for a term that exceeds the limit of a redevelopment plan pursuant to law that existed prior to January 1, 1994; and WHEREAS, the City Council is adopting this Ordinance to amend and add certain time limitations to the Redevelopment Plan, as more particularly provided below, to comply with the time limitations set forth in Section 33333.6 of the Community Redevelopment Law; and WHEREAS, the Agency has undertaken the required steps set forth in the Community Redevelopment Law, and the City Council is considering the adoption of an amendment to the Redevelopment Plan in order to ensure that the Redevelopment Plan conforms to the City's Q General Plan as required under. Section 33331 of the Community Redevelopment Law, which amendment is being considered separate and apart from this Ordinance adopting the time limits set forth in 'Section 33333.6; NOW, THEREFORE, the City Council of the City of Costa Mesa does hereby ordain as follows: SECTION 1. Section 9.0 of the Redevelopment Plan for the Costa Mesa Downtown Redevelopment Project is hereby amended as set forth in Exhibit "A" which is attached hereto and incorporated herein by reference. SECTION 2. The City Council finds and determines that amendments to the Redevelopment Plan as adopted by this Ordinance are in compliance with the time limitations set forth in Section 33333.6. SECTION 3. The Redevelopment Plan shall remain in full force and effect, unmodified except to the extent of those particular amendments expressly set forth in this Ordinance. No actions with respect to further extending the time limitations set forth herein pursuant to Section 33333.6(a)(2) or other provisions of the Community Redevelopment Law are being taken at this time, but the right to consider such extension(s) of the time limitations is being reserved. SECTION 4. The City Clerk is hereby authorized and directed to certify to the passage of this Ordinance and to cause the same to be published in a newspaper of general circulation which is published and circulated in the City of Costa Mesa. SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after its passage. PASSED AND ADOPTED this 7th day of November, 1994. ATTEST: I Deputy Cite it Clerk of the City of Costa Mesa Mayor of the City of Costa Mesa ROVED AS TO FORM CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of. the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No. 94-14 was introduced and considered section by section at a special joint City Council/Redevelopment Agency meeting held on the 12th day of October, 1994, and thereafter passed and adopted as a whole at a regular meeting of the City ' Council held on- the 7th day of November, 1994, by the following roll call vote: AYES: C-ao; 51 14tfi? PM REY) 1�09tJ bUCKLt ) -EU FFA Rie.KSot� NOES: (JO A) ABSENT: /J0 n1 e IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 8th.da' sof: November, 1994. Deputy City Jerk and ex -officio Clerk of _ - the City Council of the City of Costa Mesa EXHIBIT "A" ORDINANCE NO. 94-14 119.0 DURATION OF THE REDEVELOPMENT PLAN 9.1 Effective Date of the Redevelopment Plan Except for the nondiscrimination and nonsegregation provisions which shall run in perpetuity, and except as provided in Sections 9.2 and 9.3 below, the provisions of this Plan shall be effective and the provisions of other documents formulated pursuant to this Plan may be -made effective for forty (40) years from the date of adoption of this Plan by the City -Council. -After such 40 -year time limit. on the effectiveness of the Plan, the Agency shall still have the authority to pay previously incurred indebtednessand to enforce existing covenants, contracts, or other obligations. 9.2 Limitation on Incursion of Indebtedness The number of dollars of taxes which may be divided and allocated to the Agency pursuant to the Redevelopment Plan shall not exceed: (1) for fiscal years 1985-86 and before the amounts actually so divided and allocated to the Agency; and (2) for fiscal. years 1986-87 and thereafter, the amount of one hundred thirty-six million eighty-eight thousand one hundred two dollars and no cents ($136,088,102.00), except by amendment of the Redevelopment Plan in the manner required bylaw. No loan, advance, or indebtedness to be, -repaid from .the allocation of taxes referred to in the preceding paragraph shall be established or incurred by the Agency' to. finance in whole or in part of the - Redevelopment Project after January .1, 2004. Such loan, advance, or indebtedness may be repaid over a period of time longer than such time limit, except that the Agency ,shall not pay indebtedness or receive the property tax increment described in Section 6 and in the above paragraph of this Section 9.2 after.ten (10) years from the termination' of the effectiveness of the Redevelopment Plan pursuant to Section 9.1 above, provided, however, nothing 'in the foregoing limitation shall be construed to or shall affect the validity of any bond, indebtedness, or other obligation, including any mitigation agreement entered into pursuant to Section 33401 of the Community Redevelopment Law, authorized by the legislative body, or the Agency prior to January 1, 1994, nor shall the foregoing limitation be construed to affect the right of the Agency to receive, the property tax increment described in Section 6 and the above paragraph of this Section 9.2, to pay the indebtedness or other obligation. Such time limit may be extended only by.amendment of the Redevelopment Plan in the manner required by law. Further, this limit shall not prevent the Agency from incurring debt to be paid from the Low and Moderate Income. Housing Fund or establishing .more debt in order to fulfill the Agency's housing obligations under Health and Safety Code Section, 33413 of the Community Redevelopment Law. 9.3 Time Limit on Acquisition of Property by Eminent Domain No eminent domain proceeding to acquire property within the Redevelopment Project Area shall be commenced after twelve (12) years following the effective date of Ordinance No. 86-24, which was adopted on December 15, 1986. Such time limitation may be extended only by amendment of the Redevelopment Plan in the manner required by law."