HomeMy WebLinkAbout09 REDEV PROJECT AREA 11-03-97AGENDA
NO. 9
11-3-97
DATE:
NOVEMBER 3, 1997
Inter-Com
TO:
FROM'
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT STAFF
AMENDMENT TO REDEVELOPMENT PROJECT AREA AGREEMENT BETWEEN THE CITY
OF TUSTIN, TUSTIN COMMUNITY REDEVELOPMENT AGENCY AND THE CITY OF
IRVINE
RECOMMENDATION
It is recommended that:
i ·
The city Council approve the attached Amendment No. 1 to the
Agreement between the City of Tustin, Tustin Community
Redevelopment Agency and the City of Irvine.
·
The Redevelopment Agency approve the attached Amendment No. 1
to the Redevelopment Cooperative Agreement between the City of
Tustin, Tustin Community Redevelopment Agency and City of
Irvine.
FISCAL IMPACT
No fiscal impacts are associated with the proposed amendment.
BACKGROUND AND DISCUSSION
The city Council and Redevelopment Agency previously authorized
staff to enter into a Redevelopment Cooperative Agreement with the
City of Irvine for purposes of creating a joint redevelopment
project for MCAS-Tustin as permitted by state law. Recent changes
to the Health and Safety Code as well as delays in completion of
the proposed MCAS-Tustin Redevelopment Plan now necessitate an
amendment to the agreement.
The attached amendment would extend the time frame for completion
of the Redevelopment Plan, as well as require each city to complete
General Plan amendments once the Redevelopment Plan is adopted and
obtain each of their Planning Commission's recommendation on the
consistency of the Redevelopment Plan with each respective city's
General Plan. The amendment would also permit deferral of Irvine's
required deposits into the housing set-aside fund at Irvine's sole
Amendment to Cooperative Agreement
Page 2
discretion, subject to authorizations provided by State law.
Staff will be available to answer any questions.
Attachment
ltr.cs.~c
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18:16 '1~'17147246402 CITY OF IRVINE
~001
~M'k'NT NO. 1 TO Rg. DEVE. LOPMENT COOPERATION AGI~R~.MENT
//4/S AMENDMENT NO. 1 TO.REDEVELOPMENT COOPERATION
AOREE1VIENT ("Atnendment") is made and entered into this ~ day of
,1997 ("Effectivi~ Date"), by and among the CITY OF TUSTIN, a
general law city ("TUSTIN"), th~ TUSTIN COMMUNITY REDEVELOPMENT .
AGENCY, a community redevelopment agency organized and existing pursuant to
Health and Safety Code Section 33000 et seq. f"Agency"), and the CITY OF IRVINE, a
ch~r citx ('URVINE").
gI~cIIALS
A. The parties hereto entered into that certain Redevelopment Cooperation
Agreement, dated ,19 (the "Agreement"). Section 2.b ofthe Agreement
provides that the Agreement automatically terminate~ unless Irvine and Tustin have both
approved, by ordinance, the MCAS Redevelopment Plan by July 1, 1997. Section 2.b
also provides that the July 1, 1997, date may be extended by letter agreement of the
respective executive officers of the each of the parties. By letter from lhis~ and Tustin
RDA, dated December 3, 1996, and approved by Irvine on December 10, 1996, the
executive officers of the parties hereto agreed to extend the July 1, 1997 date for 180
days.
B. The pm'ties h~eto anticipate a funhe~ delay in preparation the MCAS
Redevelopment Plan due to recent changes to the Health and Safety Code a~ well as
delays in completion of the l~oposcd MCAS Tustin Redevelopment Plan which
necessitate an Amendment to the Agreement. The parties hereto therefore collectively
desire to amend the A~ent.
NOW, THEREFORE, lhe parties hereto agree as follows:
1. Thc foregoing Recitals are tree and correct and incorporated herein.
.
The July 1, 1997, date set forth ia Section 2.b of the Agreement is deleted and
replaced with the date of September 1, 1998. The authority, granted in
Section 2.b, to the executive officers of each of the patties hereto to agree, on
behalf of their respective entities, to an exten.~on of such deadline up to a
cumulative total of one hundred eighty (180) days, shall apply to the
September 1, 1998 date now applicable to Section 2.b such that thc cxccutive
officers may extend such September 1, 1998 date by letter agreement to a date
not later than February 28, 1998.
If Tustin and lrvine adopt ordinances approving the Redevelopment Plan,
Tustin and Irvine will then proceed with General Plan amendments covering
each City's territory within the MCAS-Tustin Redevelopment Project Area.
Once General Plan amendments are adopted, the Tustin and Irvine Planning
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Commissions shall xepo~ and recommend on the adopted Redevelopment
Plan's conformity with each respective City's General Plan.
3. Section 4.d is amended to read as follows:
"d. Housing Fund..The parties acknowledge that Agency is rcquked
to set aside the percentage ofta~ incremem it receives, as set forth in Health and
Safety Code Section 33334.2, in a sepm'ate account of the Agency for the purpose
of increasing, impro~ and pmsex~ing the community's supply of low- and
moderate-income housing. T~e parties acknowledge that the current percentage
identified in Health and Safety Code Section 33334.2 is twenty percent (20%).
The parties further aclmowledge that .under current law the set aside calculation
must be made on "gross tax increments," i.e., the tax increment received before
the required' statutory pass through payments ar~ made to affected taxing entities
pursuant to Hcalth and Safety Code Section 33607.5. Agcncy shall separately
calculate the housing set aside for the Tustin Tax Increment and the Irvine Tax
In~ement. Provisions of Health and Safety Code Section 33492.]06 allow for a
50% deferral of Housin§ Fund deposits for up to 10 years for thc MCAS-Tustin
Redevelopment project. Tustin shall have the full authority to d¢ct to defer
Housing ~'Mnds from the Tustin portion of the project and lrvine shall direct the
Agency to either defer or not defer the I_wine portion of the Housing Funds as
determined by Irvine.
AgenCy shall establish a separate account, referred to herein as the "Irvine Portion
Housing Account," and shall set aside the required percentage oflrvine Tax
Incremeot into the IrvLne Portion Housing Account. In accordance with, and to
the. extent p~nitted by applicable law, Irviae may use thc monie~ in the Irvinc
Portion Housing Account outsi~ the Irvine Portion upon adoption of the
resolution(s) referenced in Health and Safety Code Section 33334.2(g) or
successor statute. At lrvine's option, Agency shall invest the funds in the Irvine
Portion Housing Account in one or more interest-bearing accounts at the dire~on
of Irv/nc."
4. Excc'l~t as sa forth herein, thc tcamas, provisions, and conditions of the
Agreement shall remain in full force and effect.
,
Thc Effective Date of this ~lc~dment shall be the latest of the dates s~t next
to the signatures of thc parties hereto, which da~ shall bc inserted imo the
preamble of this Amendment.
IN WITNESS WHEREOF, the parties hereto have approved and entered into this
Amendment as of the Effective Date.
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10/27/97 18:17
CITY OF IRVlNE
~003
CITY OF TUSTIN
Date:
By:
ATTEST:
City Clerk
APPROVED AS TO i~ORM:
City Attorney
TUSTIN CoIvnvIuNITY
REDEVELOPMENT AGENCY
D2t¢:
By:
Ils:
ATTEST:
Agency Secre~
APPROVBD AS TO FORM:
Agency Counsel
[signatures continued on next page]
Date:
By:
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10/27/97 18:18 ~'17147245402 CITY OF IR¥INE ~00~
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
[end of signatures]
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