HomeMy WebLinkAboutRDA 03 REDEV PRO AREA 11-03-97AGENDA
RDA NO. 3
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:
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.
a.
Staff will be available to answer any questions.
Attachment
Itr.cs.acc
~MENT NO. 1 TO REDEVELOPMENT COOPERATION AGR RV. MF_.NT
THIS ANIENDMISNT NO. 1 TO REDEVELOPMENT COOPERATION
AGR_EEIvI]gNT ("Amendment") is made and entered in,tO this ~ day of
,1997 ("Bffcctivi~ Date"), by and among the CITY OF TUSTIN, a
genre'al law city ("TUSTIN"), the TUSTIN COMMUNITY REDEVELOPMENT
AGENCY, a community redevelopment age-ney organized and existing pursuant to
Health and Safety Code Section 33000 et se_e_q. ("Agency"), and the CITY OF I~¥1NE, a
charter city ("I~VINE").
A. The parties hereto entered into that certain Redevelopment Cooperation
Agreement, dated ,19 (the "Agreement"). Section 2.b of the Agreement
provides that the Agreement automatically terminates unless Irvine.and Tustin have both
approved, by ordinance, the MCAS Redevelopment Plan by luly 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 Tustin and Tustin
RD& dated December 3, 1996, and approved by I_wine on December 10, 1996, the
executive offic,~r$ et'the parties hereto agreed to extend the July 1, 1997 date for 180
days.
B. The parties hereto anticipate a further dehy in preparation the MCAS
Redevelopment Plan due to recent changes to the Health and Safety Code as well as
delays in completion of the proposcd MCA. S Tustin Redevelopment Plan which
necessitate an Amendment to the Agreement. The parties hereto therefore collectively
desire to amend the Agreement.
NOW, THE~FO~, the parties hereto agree as follows:
1. The foregoing Recitals are true and correct and incorporated herein.
The July 1, 1997, date set forth in Section 2.b of the Agreement is deleted and
replaced with the date of Sc'ptember 1, 1998. The authority, granted in
Section 2.b, to the executive officers of each ofthe parties hereto to agree, on
behalf of their respect/ye entitie% to an extension of such deadline up to a
cumulative total of one hundred eighty { 180) days, ahall apply to the
September 1, 1998 date now applicable to Section 2.b such that the executive
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 Re. development 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 Tustiu and Irvine Planning
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Commissions shall ~eport and recommend on thc adopted Kcdevelopment
Plan's conformity with each respective City's General Plan.
3. Section 4.d is amended to mad as follows:
"d. Housing Fund. The parties acknowledge that Agency is required
m set aside the percentage aftax increment it receives, as set forth in Health and
Safety Code Section 33334.2, in a separate account of the Agency for the purpose
of increasing, improving, and preserving the community's supply of low- and
moderate-income housing. The parties acknowledge that the current percentage
identified in Health and Safety Code Section 33334.2 is twenty percent (20%).
The parties further acknowledge 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 are made to affected taxing entities
pursuant to Health and Safety Code Section 33607.5. Agcncy shall separately
calculate the housing set aside for the Tustin Tax Increment and the Irvine Tax
Increment. Provisions of Health and Safety Code Section 33492..106 allow for a
50% deferral of Houslng Fund deposits forup to 10 years for the MCAS-Tusfin
Redevelopment project.. Tusfin shall have the full authority to elect to defer
Housing Funds from the Tustin portion of the project and Irvine shall direct the
Agency to either defer or not defer the Irvine portion of the Housing Funds as
determined by Irvine.
Agency shall establish a separate account, referred to herein as the '2ndne Portion
Housing Account," and shall set aside the required percentage oflrvine Tax
Increment into the Irvime Portion Housing Account. In accordance with, and to
the extent permitted by applicable law, Irvi~e may use the monies in the !trine
Portion Housing Account outside 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 ftmds in the lrvine'
Portion Housing Account in one or more interest-bearing accounts at the dixe~on
4. Except as set forth herein, thc terms, provisions, and conditions of the
Agreement shall remain in full force and effect.
¸,
The Effective Date of this Amendment shall be the latest of the dates set next
to thc signatures of thc parties hereto, which date shall be inserted into 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 '~17147246402 CITY OF IRVINE ~003
Date:
CITY OF TUSTIN
By:
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
Date:
TUSTIN CO~
R~DEVELOPM~ENT AGENCY
By:
Its:
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
Agency Counsel
[signatures continue~ on next page]
Date:
CITY OF IRVINE
By:
Its:
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ATTEST:
City Clerk
APPROVED AS TO FORM:
City' Attorney
[end of signatures]
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