HomeMy WebLinkAboutOB Res 14-02 2014-02-26 RESOLUTION NUMBER OB14-02
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT
AGENCY MAKING FINDINGS TO RE-ESTABLISH THE SEWER
EASEMENT LOAN AGREEMENT AS AN ENFORCEABLE
OBLIGATION AND TAKING CERTAIN RELATED ACTIONS
RECITALS:
A. The Seal Beach Redevelopment Agency (the"Former RDA")was a
duly constituted redevelopment agency pursuant to provisions of the Community
Redevelopment Law (the "Redevelopment Law") set forth in Section 33000 et
seq. of the Health and Safety Code ("HSC") of the State of California (the
"State").
B. The Former RDA undertook a program to redevelop a project area
known as the Riverfront Redevelopment Project(the"Project Area"),
C. Bay City Partners, LLC ("Bay City"), the Former RDA, the City of
Seal Beach (the "City") and the City of Seal Beach Planning Commission,
entered into a Settlement Agreement and Mutual Release, dated as of March 16,
2011 (the"Settlement Agreement"), after multiple years of litigation proceedings.
D. The Settlement Agreement, among other matters, provided for Bay
City's conveyance of an irrevocable easement on a certain property for sewer
access, construction and maintenance purposes (the"Sewer Easement").
E. The acquisition of the Sewer Easement was necessary to provide
services to residents and businesses within the Project Area and, therefore, of
benefit to the Project Area.
F. The City and the Former RDA agreed that the City would advance
certain funds for the costs relating to the acquisition of the Sewer Easement(the
"Loan"), with the understanding that the Former RDA would repay the City for
such advances.
G. The Former RDA's repayment obligation with respect to the Loan
was memorialized by Resolution No. 11-10, adopted by the Former RDA on June
27, 2011, and Resolution No. 6151, adopted by the City Council of the City on
June 27, 2011 (together, the"Sewer Easement Loan Agreement").
H. As of the date of this Resolution, $1,200,000 of the principal
amount of the Loan, plus certain accrued interest, remain outstanding and
unpaid.
I. Pursuant to AB X1 26 (which became effective at the end of June
2011), and the California Supreme Court's decision in Califomia Redevelopment
Association, et al. v. Ana Matosantos, et al. (53 Cal.4th 231(2099)), the Former
RDA was dissolved as of February 1, 2012, the Successor Agency was
constituted as the successor entity to the Former RDA, and an oversight board of
the Successor Agency(the"{oversight Board")was established.
J. Pursuant to AB X1 26, except for those provisions of the
Redevelopment Law that are repealed, restricted or revised pursuant to AB X1
26, all authority, rights, powers, duties and obligations previously vested with the
Former RDA under the Redevelopment Law are vested in the Successor
Agency.
K. Pursuant to HSC Sections 34171(d) and 34178, the Sewer
Easement Loan Agreement became unenforceable on the Successor Agency as
Resolution Number OB14-02
of February 1. 2012; provided, hovmever, that pursuant to HSC Section
34191.4(b). the Loon shall be re-established and the Sewer Easement Loan
Agreement shall be deemed to be an enforceable obligation after the Successor
Agency receives a finding of completion (a "Finding of Completion") from the
State Department of Finance (the ^DOF) under HSC 34170.7. if the Oversight
Board makes a finding that the Loan was for legitimate redevelopment purposes.
L The DC>F issued a Finding of Completion to the Successor Agency
on July 10.2013. `
M. The Board of Directors of the Successor Agency adopted "A
Resolution No. 8A14-02 on February 24, 2014. oemnapplication requesting the
Oversight Board to make a finding that the Loan was made for legitimate
purposes for the purposes of HSC Section 341A14(b).
N. After having reviewed the information relating to the Sewer
Easement Loan Agreement,the Oversight Board wishes to adopt this Resolution,
finding that the Loan was made for legitimate redevelopment purposes and
authorizing future repayment of the Loan by the Successor Agency, subject to
the requirements nf HSC Section 34iQ14(b)
O. It is recognized thod, pursuant to HSC Section 34191.4(b). the
repayment amount authorized each fiscal year for all loans re-established
pursuant to HSC Section 34191.4(b) to be repaid by the Successor Agency to
the City shall not exceed one-half of the increase between the amount distributed
to taxing entities pursuant bu HSC Section 341B3(m)(4) inthat fiscal year and the
amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in the
2O12'13 base year.
P. It is further recognized that HSC Section 34101.4(b)(2) provides
that 20 percent of each Loan repayment will be deducted and transferred to the
Low and Moderate Income Housing Asset Fund established and held by the �
Orange County Housing Authnrib/, in the Housing Authority's capacity as the awl
housing successor to the Former RDA pursuant bo HSC Section 34178.
NOW, THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR
AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY, HEREBY
F|ND8, DETERK8|NES, RESOLVES,AND ORDERS AS FOLLOWS:
Section 1. The above recitals are true and correct and are a
substantive part uf this Resolution,
Section 2. For the purposes of HSC Section 34191.4. the Oversight
Board hereby finds that the Loan was for legitimate redevelopment purp0000,
and the Sewer Easement Loan Agreement is an enforceable obligation;
Dlovided, that the repayment terms thereunder shall be modified in accordance
with the requirements of HSC Section 341014(b).
Section 3. The Oversight Board hereby authorizes the Finance 0Miumr
of the Successor Agency to develop o repayment schedule for the Loan in
accordance with the requirements of Section 34191.4(b). Recognizing that the
ootuo| dollar amount to be repaid by the Successor Agency for each scheduled ^
repayment is subject to the availability of funds from the Redevelopment Property
Tax Trust Fund and the limitations set forth in HSC Section 34101.4(b). the '
Finance Officer of the Successor Agency is hereby authorized to modify the
repayment schedule from time to time based on the requirements of HSC
Section 341Q1.4(b) and the actual circumstances at the time of the modification.
Section 4. The members of the Oversight Board and officers of the
Successor Agency are hereby authorized,jointly and severally, to do any and all
things which they may deem necessary or advisable to effectuate this
Resolution Number DB14-O2
PASSED. APPROVED AND ADOPTED by the Oversight Board at
meeting held mn the_26th_day of February 2014.
AYES: Board Members:
NOES: Board Members:
ABSENT: Board Members:
ABSTAIN: Board Members:
ATTEST:
Lw;a
STATE OFCALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH )
|. Linda Devine. Secretary to the Oversight Board, hereby certify that the
foregoing resolution was duly adopted at a meeting of the Oversight Bomnd, held
nn the 26thday of February 12014,
Secr4tary, Oversight Board
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