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HomeMy WebLinkAbout02 TIME LIMIT EXT FOR REDEV PLANS 01-15-08 AGENDA REPORT MEETING DATE: JANUARY 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: TIME LIMIT EXTENSIONS FOR THE TOWN CENTER AND SOUTH CENTRAL REDEVELOPMENT PLANS SUMMARY Time limit extensions of the Redevelopment Plans are needed for effectiveness of each Plan and the ability to collect tax increment for the Town Center and the South Central Redevelopment Project Areas. RECOMMENDATION It is recommended the Tustin City Council take the following action: Adopt Ordinance No. 1348 to extend by one year the Plan Effectiveness and Time Limit to Receive Tax Increment in the Town Center Redevelopment Project Area; and, 2. Adopt Ordinance No. 1349 to extend by one year the Plan Effectiveness and Time Limit to Receive Tax Increment in the South Central Redevelopment Project Area. FISCAL IMPACT Adopting the ordinances will extend by one year the Agency's ability to collect tax increment in the Town Center and South Central Project Areas. Staff estimates that the Agency would receive approximately $7,083,122 of gross tax increment in the Town Center project Area in FY 2028-2029, and approximately $6,882,774 of gross tax increment from the South Central Project Area in FY 2027-2028. BACKGROUND/DISCUSSION In August 2004, the California Legislature (SB 1096) amended the California Health and Safety Code Section 33333.6 (e)(2)(D) of the Community Redevelopment Law ("CRL") to permit a city council, as the legislative body of a redevelopment agency, to extend by one year both the period of effectiveness of a redevelopment plan and the ability of the redevelopment agency to collect tax increment from a project area when the project area is required to make payment to the Educational Revenue Augmentation Fund (ERAF) pursuant to CRL Section 33681.12. The SB 1096 amendment was intended to mitigate the effects of ERAF transfers imposed on redevelopment agencies as part of the solution to the State's FY 2004-2005 budget crisis. Per SB 1096, the time extensions may be adopted by simple ordinance of the City, and thus need not comply with Section 33354.6, Article 12, (commencing with Section 33350) or any other provision of that Section relating to the amendment of redevelopment plans. In FY 2005-2006, the Agency made ERAF payments pursuant to CRL Section 33681.12 in the amounts of $266,909 and $266,909 from the Town Center and South Central Project Areas. ANALYSIS The Town Center Redevelopment Plan was adopted November 22, 1976 and amended to incorporate legislative changes in 1981, 1989, 1994, and 2005. Currently, the Plan's expiration date is November 22, 2018, while the last date to receive tax increment is November 22, 2028. The South Central Redevelopment Plan was adopted August 1, 1983 and amended to incorporate legislative changes in 1985, 1994, 1999, and 2005. Currently the Plan's expiration date is July 15, 2017, while the last date to receive tax increment is July 15, 2027. The proposed ordinances would extend the effectiveness of the Town Center Redevelopment Plan to November 22, 2019 and the South Central Redevelopment Plan to July 15, 2018. The ordinances would also extend the time limits for the Agency to receive tax increment to November 22, 2029 from the Town Center Redevelopment Project Area and July 15, 2028 from the South Central Project Area. Time Limit on Time Limit on Time Limit on Time Limit on Plan Plan Effectiveness Plan Effectiveness Receipt of Tax Receipt of Tax (current date) (proposed date) Increment Increment current date) ro osed date Town Center November 22, 2018 November 22, 2019 November 22, 2028 November 22, 2029 South Central Jul 15, 2017 Jul 15, 2018 Jul 15, 2027 Jul 15, 2028 The proposed amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4) because they are a fiscal activity that does not involve the commitment to a specific project which may result in a potentially significant physical impact on the environment. In adopting these Ordinances, the City Council is determining the Agency is in compliance with CRL Section 33333.6(e)(D)(ii) and finding that the funds used to make the ERAF payment would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of each redevelopment plan. Letters of Notification were .mailed to the governing body of each affected taxing entity at least 30 days prior to the January 15, 2008 Public Hearing and a notice was published in a newspaper of general circulation in the community at least once, not less than 10 days prior to the Hearing. Agency staff will be available to respond to any questions at the City Council's meeting of January 15, 2008. Christine A. Shingleton Jerry Craig Assistant City Manager Redevelopment Program Manager Attachments: Ordinance No. 1348 Ordinance No. 1349 S:\RDA\CC report\2008\AgendaReport 1-15-08,1s1 Reading, S61096 Time Limit Extensions.doc ORDINANCE NO. 1348 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, EXTENDING THE TIME LIMIT OF THE EFFECTIVENESS OF THE REDEVELOPMENT PLAN FOR THE TOWN CENTER REDEVELOPMENT PLAN; EXTENDING THE TIME LIMIT FOR PAYMENT OF INDEBTEDNESS AND RECEIPT OF PROPERTY TAXES UNDER THE REDEVELOPMENT PLAN FOR THE TOWN CENTER REDEVELOPMENT PROJECT AREA; AND MAKING OTHER FINDINGS IN CONNECTION THEREWITH WHEREAS, the Tustin Community Redevelopment Agency ("Agency") is a community redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part 1 of Division 24, commencing with Section 33000, of the Health and Safety Code of the State of California) ("CRL"); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan ("Redevelopment Plan") for the Town Center Redevelopment Project ("Project Area") which was adopted by the Agency's legislative body, the City Council of the City of Tustin ("City Council"), by Ordinance No. 701 on November 22, 1976, and thereafter amended by Ordinance No. 855 on September 8, 1981 (Amendment No. 1), and thereafter by Ordinance No. 1021 on March 20, 1989; and thereafter by Ordinance No. 1141 on November 21, 1994 per legislative requirements of AB 1290; and thereafter by Ordinance No. 1291 on February 22, 2005; and thereafter by Ordinance No. 1306 on October 17, 2005; and WHEREAS, pursuant to CRL Section 33333.6, a time limit on the effectiveness of the Redevelopment Plan and a time limit on the period for payment of indebtedness and receipt of property taxes under the Redevelopment Plan have been established; and WHEREAS, by and through Senate Bill 1096, CRL Section 33333.6(e)(2)(D) was amended to provide when an redevelopment agency is required to make a payment to the Educational Revenue Augmentation Fund ("ERAF") pursuant to CRL Section 33681.12, the City Council, as the legislative body of the Agency, may enact an ordinance to extend by one (1) year the time limit on the effectiveness of the Redevelopment Plan and the time limit for payment of indebtedness and receipt of property taxes under the Redevelopment Plan, each and respectively; and WHEREAS, CRL Section 33333.6(e)(2)(C) further provides that such ordinance may be adopted without compliance with the normal procedures for redevelopment plan amendments; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii), the Agency is in compliance with CRL Sections 33334.2 and 33334.6, as applicable, in setting aside not less than twenty percent (20%) of tax increment revenue for the purposes of increasing, improving and preserving the community's supply of low- and moderate-income housing; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii) and in accordance with the requirements of CRL Section 33490, the Agency has held a public hearing and adopted a Project Area Implementation Plan every five years that contains the specific goals and objectives for the Project Area; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii ), the Agency is in compliance with CRL Section 33413 (a) and (b) to the extent applicable; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii ), the.Agency is not subject to sanctions pursuant to CRL Section 33334.12(e) for failure to expend, encumber or disburse an excess surplus of the low and moderate income housing set- aside fund; and WHEREAS, the City Council finds the Project Area's funds used by the Agency to make the $266,909 payment in FY 2005-2006 to the county's Educational Revenue Augmentation Fund would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; and WHEREAS, the enactment of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA") pursuant to CEQA Guidelines Section 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and WHEREAS, the City Council has noticed the governing bodies of each affected taxing entity at least 30 days prior to the January 15, 2008, Public Hearing and published in a newspaper of general circulation in the community at least once, not less than 10 days prior to the date of the Hearing; and WHEREAS, the City Council desires to adopt this ordinance to amend and extend certain time limitations of the Redevelopment Plan, as more particularly set forth below, in accordance with Section 33333.6, as amended by SB 1096. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The current time limit on the effectiveness of the Town Center Redevelopment Plan is hereby extended by one (1) year from the existing time limit of November 22, 2018 to November 22, 2019, and the Tustin Community Redevelopment Agency is hereby authorized to act with respect to the Redevelopment Plan at any time during which the Redevelopment Plan is effective. Section 2. The current time limit on paying indebtedness or receiving property taxes pursuant to the Town Center Redevelopment Plan and CRL is hereby extended by one (1) year from the existing time limit of November 22, 2028 to November 22, 2029, and the Tustin Community Redevelopment Agency is hereby authorized to act with respect thereto during such extended period. Section 3. Except with respect to the amendments set forth herein, the Redevelopment Plan, as amended, is and shall remain unchanged and in full force and effect in accordance with its terms. Section 4. The City Clerk is hereby authorized to file a Notice of Exemption with the County of Orange pursuant to CEQA Guidelines Section 15094. Section 5. This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published as set forth below. Section 6. At least five (5) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and public locations in the City; and a notice shall be published once in the Tustin News, a newspaper of general circulation in the City of Tustin, setting forth the title of this Ordinance, the date of its introduction and the places where this Ordinance is posted in accordance with Government Code Section 36933. Within fifteen (15) days following final adoption, a summary of the Ordinance with the names of the council members and votes shall be published in a newspaper of general circulation. PASSED AND ADOPTED at a regular meeting of the City Council for the City of Tustin on this day of , 2008. Jerry Amante Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR ORDINANCE NO. 1348 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Ordinance No. 1348 was duly and regularly introduced and read at a regular meeting of the Tustin City Council, held on the day of , 2008 and was given its second reading, passed, and adopted at a regular meeting of the City Council held on the day of 2008 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk S:\RDA\Ordinances\Ordinance 1348 SB1096 TownCenter Time Extension08.doc ORDINANCE NO. 1349 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, EXTENDING THE TIME LIMIT OF THE EFFECTIVENESS OF THE REDEVELOPMENT PLAN FOR THE SOUTH CENTRAL REDEVELOPMENT PLAN; EXTENDING THE TIME LIMIT FOR PAYMENT OF INDEBTEDNESS AND RECEIPT OF PROPERTY TAXES UNDER THE REDEVELOPMENT PLAN FOR THE SOUTH CENTRAL REDEVELOPMENT PROJECT AREA; AND MAKING OTHER FINDINGS IN CONNECTION THEREWITH WHEREAS, the Tustin Community Redevelopment Agency ("Agency") is a community redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part 1 of Division 24, commencing with Section 33000, of the Health and Safety Code of the State of California) ("CRL"); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan ("Redevelopment Plan") .for the South Central Redevelopment Project ("Project Area") which was adopted by the Agency's legislative body, the City Council of the City of Tustin ("City Council"), by Ordinance No. 890 on August 1, 1983, (the "Original Project Area"), and thereafter amended by Ordinance No. 939 on August 5, 1985 (Amendment No. 1) including adding new area to the Project Area (the "added Area"), and thereafter by Ordinance No. 1142 on November 21, 1994 per legislative requirements of AB 1290; and thereafter by Ordinance No. 1223 on November 1, 1999 re-establishing the Agency's eminent domain authority in the Project Area for atwelve-year period; and thereafter by Ordinance No. 1290 on February 22, 2005; and thereafter by Ordinance No. 1307 on October 17, 2005; and thereafter by Ordinance No. 1333 on April 3, 2007 describing the Agency's program to acquire real property by eminent domain pursuant to SB 53; and WHEREAS, pursuant to CRL Section 33333.6, a time limit on the effectiveness of the Redevelopment Plan and a time limit on the period for payment of indebtedness and receipt of property taxes under the Redevelopment Plan have been established; and WHEREAS, by and through Senate Bill 1096, CRL Section 33333.6(e)(2)(D) was amended to provide when an redevelopment agency is required to make a payment to the Educational Revenue Augmentation Fund ("ERAF") pursuant to CRL Section 33681.12, the City Council, as the legislative body of the Agency, may enact an ordinance to extend by one (1) year the time limit on the effectiveness of the Redevelopment Plan and the time limit for payment of indebtedness and receipt of property taxes under the Redevelopment Plan, each and respectively; and WHEREAS, CRL Section 33333.6(e)(2)(C) further provides that such ordinance may be adopted without compliance with the normal procedures for redevelopment plan amendments; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii), the Agency is in compliance with CRL Sections 33334.2 and 33334.6, as applicable, in setting aside not less than twenty percent (20%) of tax increment revenue for the purposes of increasing, improving and preserving the community's supply of low- and moderate-income housing; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii) and in accordance with the requirements of CRL Section 33490, the Agency has held a public hearing and adopted a Project Area Implementation Plan every five years that contains the specific goals and objectives for the Project Area; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii ), the Agency is in compliance with CRL Section 33413 (a) and (b) to the extent applicable; and WHEREAS, pursuant to CRL Section 33333.6(e)(2)(D)(ii ), the Agency is not subject to sanctions pursuant to CRL Section 33334.12 (e) for failure to expend, encumber or disburse an excess surplus of the low and moderate income housing set- aside fund; and WHEREAS, the City Council finds the Project Area's funds used by the Agency to make the $266,909 payment in FY 2005-2006 to the county's Educational Revenue Augmentation Fund pursuant to CRL Section 33681.12 would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; and WHEREAS, the enactment of this Ordinance is exempt from the California Environmental Quality Act (Public Resources .Code Section 21000 et seq.) ("CEQA") pursuant to CEQA Guidelines Section 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and WHEREAS, the City Council has noticed the governing bodies of each affected taxing entity at least 30 days prior to the January 15, 2008, Public Hearing and published in a newspaper of general circulation in the community at least once, not less than 10 days prior to the date of the Hearing; and WHEREAS, the City Council desires to adopt this ordinance to amend and extend certain time limitations of the Redevelopment Plan, as more particularly set forth below, in accordance with Section 33333.6, as amended by SB 1096. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The current time limit on the effectiveness of the South Central Redevelopment Plan is hereby extended by one (1) year from the existing time limit of July 15, 2017 to July 15, 2018, and the Tustin Community Redevelopment Agency is hereby authorized to act with respect to the Redevelopment Plan at any time during which the Redevelopment Plan is effective. Section 2. The current time limit on paying indebtedness or receiving property taxes pursuant to the South Central Redevelopment Plan and CRL is hereby extended by one (1) year from the existing time limit of July 15, 2027 to July 15, 2028, and the Tustin Community Redevelopment Agency is hereby authorized to act with respect thereto during such extended period. Section 3. Except with respect to the amendments set forth herein, the Redevelopment Plan, as amended, is and shall remain unchanged and in full force and effect in accordance with its terms. Section 4. The City Clerk is hereby authorized to file a Notice of Exemption with the County of Orange pursuant to CEQA Guidelines Section 15094. Section 5. This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published as set forth below. Section 6. At least five (5) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and public locations in the City; and a notice shall be published once in the Tustin News, a newspaper of general circulation in the City of Tustin, setting forth the title of this Ordinance, the date of its introduction and the places where this Ordinance is posted in accordance with Government Code Section 36933. Within fifteen (15) days following final adoption, a summary of the Ordinance with the names of the council members and votes shall be published in a newspaper of general circulation. PASSED AND ADOPTED at a regular meeting of the City Council for the City of Tustin on this day of , 2008. Jerry Amante Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN CERTIFICATION FOR ORDINANCE NO. 1349 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is 5; that the above and foregoing Ordinance No. 1349 was duly and regularly introduced and read at a regular meeting of the Tustin City Council, held on the day of ~ , 2008 and was given its second reading, passed, and adopted at a regular meeting of the City Council held on the day of 2008 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk S:\RDA\Ordinances\Ordinance No 1349 SB1096 SouthCentral Time Extension08.doc