HomeMy WebLinkAboutCC AG PKT 2011-02-28 #F AGENDA STAFF REPORT
DATE: February 28, 2011
TO: Honorable Mayor and City Council
THRU: Patrick P. Importuna, City Manager
FROM: Mark Persico, AICP, Director of Development Services
SUBJECT: INTRODUCE ORDINANCE NO. 1605 AMENDING THE
RIVERFRONT REDEVELOPMENT PLAN TO
ELIMINATE THE TIME LIMIT ON THE
REDEVELOPMENT AGENCY'S ABILITY TO INCUR
DEBT
SUMMARY OF REQUEST:
That the City Council introduce Ordinance No. 1605 eliminating the time limit on
the Agency's ability to incur debt.
BACKGROUND, FACTS AND ANALYSIS:
The attached ordinance is the third in a series of ordinances designed to
reinstate the Redevelopment Agency's statutory authority. If the attached
ordinance is adopted, the time limit on the Agency's ability to incur debt will be
eliminated.
AB 1290, adopted in 1993, established three maximum time limits applicable to
redevelopment plans which were adopted prior to January 1, 1994, such as the
Redevelopment Plan for the Riverfront Redevelopment Project. Pursuant to
Health and Safety Code Section 33333.6, the time limit on establishing loans,
advances, and indebtedness could not exceed 20 years from the adoption of the
redevelopment plan or January 1, 2004, whichever is later. The effectiveness of
the redevelopment plan was required to terminate 40 years from the adoption of
the redevelopment plan or January 1, 2009, whichever is later. Finally, AB 1290
provides that an agency may not pay indebtedness or receive property taxes
after 10 years from the termination of the redevelopment plan.
If the Agency does not eliminate the time limit on incurring indebtedness, the
Agency may not be able to use portions of the tax increment generated in the
Project Area for future projects. Adopting the Ordinance will trigger the
Agenda Item F
Page 2
requirement for the Agency to make statutory pass through payments to affected
taxing agencies.
This Ordinance is deemed to not be a project that is subject to the requirements
of the California Environmental Quality Act (CEQA) under CEQA Guidelines
Section 15378(b)(4) as a government funding mechanism which does not involve
a commitment to any specific project.
FISCAL IMPACT:
Projected increase in ability to incur debt.
RECOMMENDATION:
That the Council introduce for first reading Ordinance No. 1605 amending the
Riverfront Redevelopment Plan so that the Agency may incur debt.
SUBMITTED BY: NOTED AND APPROVED:
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Mark Persico _ "atrick P. Im %or n!l!
Director of Development Services City Manager
Attachments:
A. Ordinance No. 1605
ORDINANCE NUMBER 1605
AN ORDINANCE OF THE CITY OF SEAL BEACH AMENDING
THE REDEVELOPMENT PLAN FOR THE RIVERFRONT
REDEVELOPMENT PROJECT PURSUANT TO THE
PROVISIONS OF HEALTH AND SAFETY CODE SECTION
33333.6(e)(2)(B)
RECITALS:
A. The Seal Beach Redevelopment Agency ( "Agency ") is a
redevelopment agency in the City of Seal Beach, created pursuant to the
California Community Redevelopment Law, California Health and Safety Code
Section 33000 et seq. ( "Redevelopment Law").
B. The City Council of the City of Seal Beach ("City Council "), by
Ordinance No. 780, adopted on March 2, 1969, approved and adopted the
redevelopment plan ( "Redevelopment Plan ") for the Riverfront Redevelopment
Project ( "Original Territory").
C. The City Council, by Ordinance No. 983, adopted on December 29,
1975, approved and adopted an amendment to the Redevelopment Plan which
added territory to the Riverfront Redevelopment Project ( "Added Territory").
D. The City Council, by Ordinance No. 1392, adopted on December
12, 1994, established and confirmed certain time limits in the Redevelopment
Plan for the Original Territory and the Added Territory pursuant to California
Health and Safety Code Section 33333.6.
E. Pursuant to Health and Safety Code Sections 33333.6 (e)(2)(C)
and 33333.6(e)(2)(D), the City Council, by Ordinance No. 1602, adopted on
December 13, 2010, and Ordinance No. 1604, adopted on January 17, 2011,
amended the Redevelopment Plan to extend the time limit on the effectiveness of
the Redevelopment Plan and the time limit to repay indebtedness and receive
property taxes pursuant to Health and Safety Code Section 33670 for the
Original Territory and the Added Territory.
F. SB 211 (effective January 1, 2002) amended Health and Safety
Code Section 33333.6 to eliminate former subdivision (a). Subdivision (a)
required redevelopment plans (or amendments adding territory) adopted on
before December 31, 1993 to contain a time limit on the establishment of loans,
advances and indebtedness to be paid with the proceeds of property taxes
received pursuant to Health and Safety Code Section 33670 of not to exceed the
later of 20 years from adoption of the redevelopment plan (or,amendment adding
territory) or January 1, 2004. In addition, SB 211 added language to subdivision
(e)(2) of Health and Safety Code Section 33333.6 providing that on or after
January 1, 2002, a redevelopment plan which was adopted on or before
December 31, 1993, may be amended to eliminate the time limit on the
establishment of loans, advances and indebtedness which was required by
Health and Safety Code Section 33333.6 prior to January 1, 2002. Section
33333.6 was subsequently amended by SB 1045 (effective September 1, 2003)
to codify such provision in subdivision (e)(2)(B) thereof.
G. The City Council desires to amend the Redevelopment Plan
pursuant to Health and Safety Code Section 33333.6(e)(2)(B) to eliminate the
time limits on the establishment of loans, advances and indebtedness to be paid
with the proceeds of property taxes derived from the Original Territory and the
Added Territory and received pursuant to Health and Safety Code Section 33670
to finance in whole, or in part, the redevelopment project. Health and Safety
Code Section 33333.6(e)(2)(B) provides that the City Council may so amend the
Redevelopment Plan by adopting an ordinance and that in adopting such
Ordinance Number 1605
ordinance, neither the City Council nor the Agency is required to comply with
Health and Safety Code Section 33354.6 or Article 12 (commencing with Health
and Safety Code Section 33450) or any other provision of the Redevelopment
Law relating to the amendment of redevelopment plans; except that the Agency
shall make the payment to affected taxing entities required by Health and Safety
Code Section 33607.7.
H. Health and Safety Code Section 33607.7 provides that following the
adoption of this Ordinance, the Agency shall pay to each affected taxing entity for
which an agreement requiring payments to the taxing entity had not been entered
into as of January 1, 1994 the amounts required pursuant to Health and Safety
Code Section 33607.5 calculated against the amount of assessed value by which
the current year assessed value exceeds an adjusted base year assessed value,
with the payments to commence in the first fiscal year following the fiscal year in
which the adjusted base year value is determined.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH,
CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Pursuant to Health and Safety Code Section
33333.6(e)(2)(B), the time limit on the establishment of loans, advances and
indebtedness to be paid with the proceeds of property taxes derived from the
Original Territory or the Added Territory and received pursuant to Health and
Safety Code Section 33670 to finance in whole, or in part, the redevelopment
project is hereby eliminated.
Section 2. For the purpose of making payments to affected taxing
entities pursuant to Health and Safety Code Section 33607.7 occasioned by the
adoption of this Ordinance the City Council hereby determines (i) that the
adjusted base year assessed value of the Original Territory is the assessed value
of the Original Territory in fiscal year 2003 -04 (January 1, 2004 being the time
limit on the establishment of loans, advances and indebtedness with respect to
the Original Territory as set forth in the City's Ordinance No. 1392) and (ii) that
the adjusted base year assessed value of the Added Territory is the assessed
value of the Added Territory in fiscal year 2003 -04 (January 1, 2004 being the
time limit on the establishment of loans, advances and indebtedness with respect
to the Added Territory as set forth in the City's Ordinance No. 1392). The City
Council hereby further determines that the Agency shall commence making
payments to affected taxing entities pursuant to Health and Safety Code Section
33607.7 in fiscal year 2011 -12, being the first fiscal year following the fiscal year
in which the adjusted base year value is determined (i.e., fiscal year 2010 -11).
The City Council hereby further determines that no payments shall be made to
affected taxing entities pursuant to Health and Safety Code Section 33607.7
based upon tax increment revenues received by the Agency in any fiscal year
prior to fiscal year 2011 -12. The City Council further determines that the
amounts, if any, required to be paid pursuant to Health and Safety Code Section
33607.5(c) or (d) shall commence in the eleventh fiscal year and thirty -first fiscal
year, respectively, following fiscal year 2011 -12, and the adjusted base year
values of the Original Territory and the Added Territory shall be the assessed
value of the Original Territory and Added Territory, respectively, in the tenth fiscal
year and the thirtieth fiscal year, respectively, following fiscal year 2003 -04.
Section 3. This Ordinance is adopted pursuant to Health and Safety
Code Section 33333.6(e)(2)(B).
Section 4. Continuation of Redevelopment Plan. Except as amended
by this Ordinance, the Redevelopment Plan is unchanged and is continued in full
force and effect in accordance with its terms.
Section 5. Califomia Environmental Quality Act. This Ordinance has
been reviewed with respect to applicability of the California Environmental
Quality Act ( "CEQA "), and the State CEQA Guidelines (California Code of
Ordinance Number 1605
Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the
City's environmental guidelines. The City has determined that this Ordinance is
not a "project" for purposes of CEQA, as that term is defined by Guidelines
Section 15378. Specifically, this Ordinance is an organizational or administrative
activity that will not result in a direct or indirect physical change in the
environment. (Guidelines Section 15378(b)(5)) Therefore, because it is not a
"project," this Ordinance is not subject to CEQA's requirements. Further, even if
this Ordinance were deemed a "project" and therefore subject to CEQA, the
Ordinance would be covered by the general rule that CEQA applies only to
projects that have the potential to cause a significant effect on the environment.
(Guidelines Section 15061 (b)(3)) As an organizational or administrative activity,
the Ordinance does not have the potential to cause a significant effect on the
environment and is therefore exempt under this general rule. Further, it can be
seen with certainty that there is no possibility that the activity in question may
have a significant effect on the environment, and thus this Ordinance is not
subject to CEQA. (Guidelines Section 15061(b)(3).)
Section 6. Severability. If any part of this Ordinance is held to be
invalid or unconstitutional by the decision of any court of competent jurisdiction,
for any reason, such decision shall not affect the validity of the remaining
portions of this Ordinance and this City Council hereby declares that it would
have passed the remainder of this Ordinance if such invalid or unconstitutional
portion thereof had been deleted.
Section 7. Certification. The City Clerk shall certify to the passage of
this Ordinance and is hereby directed to publish or post this Ordinance in
accordance with law.
Section 8. Transmittal to Agency. The City Clerk is hereby directed to
send a certified copy of this Ordinance to the Agency.
Section 9. Filing Notice of Exemption. Staff is hereby directed to file a
Notice of Exemption with the County Clerk within five days of the adoption of this
Ordinance pursuant to Section 15062 of the Guidelines.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal
Beach at a regular meeting held on the day of , 2011.
Mayor
ATTEST:
City Clerk
Ordinance Number 1605
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing Ordinance was introduced for first reading at a regular meeting held on
the 28th day of February 2011 and was passed, approved and adopted by
the City Council at a regular meeting held on the day of ,2011
by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
And do hereby further certify that Ordinance Number 1605 has been published
pursuant to the Seal Beach City Charter and Resolution Number 2836.
City Clerk