The URL can be used to link to this page

Home My WebLink About07-ATTACHMENT 2 (SUCCESSOR AGENCY RESOLUTION NO. 15-01)ATTACHMENT SUCCESSOR AGENCY RESOLUTION NO. 15 -01 SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY RESOLUTION NO. 15 -01 A RESOLUTION OF THE CITY OF TUSTIN, ACTING AS THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY, AMENDING AND REINSTATING THE WORKING CAPITAL LOAN AND ADMINISTRATIVE SERVICES AGREEMENT BETWEEN THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY The City of Tustin, acting as the Successor Agency to the Tustin Community Redevelopment Agency, finds, determines and declares as follows: A. The Tustin Community Redevelopment Agency ( "Agency ") was a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ( "CRL ") and had been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ( "City Council ") of the City of Tustin ( "City "); and B. Assembly Bill X1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code, which laws caused the dissolution and. wind down of all redevelopment agencies ( "Dissolution Act "); and C. On December 29, 2011, in the petition California Redevelopment Association, et al v. Ana Matosantos, et al, the California Supreme Court upheld the Dissolution Act and, thereby, all redevelopment agencies in California are subject to the Dissolution Act and were dissolved as of February 1, 2012; and D. The Agency is now a dissolved community redevelopment agency pursuant to the Dissolution Act; and E. By a resolution considered and approved by the City Council at an open public meeting on January 17, 2012, the City chose to become and serve as the "Successor Agency" to the dissolved Tustin Community Redevelopment Agency under the Dissolution Act; and F. Since February 1, 2012, the City serves as the "Successor Agency" and will perform its functions as the successor agency under the Dissolution Act to administer the enforceable obligations of the Agency and otherwise unwind the Agency's affairs, all subject to the review and approval by a seven member Oversight Board formed thereunder; and S.A. Resolution No. 15 -01 Page 1 of 4 G. On June 12, 1996, the Tustin City Council and Tustin Community Redevelopment Agency approved a $2,400,000 Working Capital Loan and Administrative Services Agreement ( "Working Capital Loan ") to the South Central Project Area for the purposes of permitting the Agency to complete the goals and objectives of the South Central Project Area; and H. The Working Capital Loan carried over and increased as needed from year -to -year until the final issuance of $4,650,000 on September 7, 2010; and I. In accordance with the Dissolution Act and in order to receive Redevelopment Property Tax Trust Funds, the Successor Agency submitted the Working Capital Loan on the Recognized Obligation Payment Schedule for approval by the State of California Department of Finance ( "DoF "); and J. DoF denied the Working Capital Loan, stating it is not an enforceable obligation and indicated the Successor Agency could seek to reinstate the Loan upon receiving a Finding of Completion ( "Finding "); and K. On May 10, 2013, the Successor Agency remitted what it believed to be its last remaining unencumbered funds to the Orange County Auditor - Controller and on May 13, 2013, requested a Finding from DoF; and L. On July 3, 2013, DoF informed the Successor Agency that a Finding would not be issued until after the Successor Agency remitted the principal and interest due on December 1, 2013 for the December 31, 2008 Promissory Note between the City and Successor Agency; and M. In response, the City, the Successor Agency and the Tustin Housing Authority filed a "Petition for Writ of Mandate and Complaint for Declaratory and Injunctive Relief' from the Superior Court of the State of California; and N. On April 24, 2014, the Superior Court, County of Sacramento issued its ruling in the Petition Case No. 34- 2013 - 80001623 under which a Writ mandated DoF issue the Successor Agency its Finding of Completion, nunc pro tunc as of May 15, 2013; and O. On May 1, 2014, pursuant to the Writ issued by the Court, DoF issued the Finding of Completion, effective May 15, 2013; and P. On June 19, 2014, the City, the Successor Agency and the Tustin Housing Authority filed a notice of appeal in response to other findings in the Petition; and Q. On July 8, 2014, DoF filed a notice of cross - appeal to challenge the judgment that DoF had abused its discretion in refusing to issue a Finding until the amount due under the Promissory Note had been remitted; and R. On December 9, 2014, the City and DoF executed a Promissory Note Settlement Agreement outlining the City's payoff schedule for the Note and DoF's promise to abandon or dismiss the cross - appeal; and S. A. Resolution No. 15 -01 Page 2 of 4 S. On December 12, 2014, DoF filed an abandonment of the cross - appeal and on December 15, 2014 the abandonment became official; and T. The City, acting as Successor Agency, has determined it is necessary and appropriate to amend and reinstate the Working Capital Loan originally entered into by and between the City of Tustin and the former Tustin Community Redevelopment Agency as an enforceable obligation; and U. In accordance with the Dissolution Act, the amended and reinstated Working Capital Loan will also require the Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency to deem it an enforceable obligation and DoF approval. NOW, THEREFORE, BE IT RESOLVED BY THE TUSTIN CITY COUNCIL, SERVING AS THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY: Section 1. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. The City acting as Successor Agency to the Tustin Community Redevelopment Agency approves amending and reinstating the Working Capital Loan and Administrative Services Agreement between the City of Tustin and the Successor Agency to the Tustin Community Redevelopment Agency. Section 3. The Agency Chair is hereby authorized to execute the First Amendment to the Working Capital Loan and Administrative Services Agreement, in substantially the form attached to this Resolution. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk on behalf of the Successor Agency shall attest to and certify the vote adopting this Resolution. PASSED AND ADOPTED this 20th day of January, 2015. ATTEST: JEFFREY C. PARKER, City Clerk on behalf of the Successor Agency CHARLES E. PUCKETT, Chair on behalf of Successor Agency S.A. Resolution No. 15 -01 Page 3 of 4 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) I, JEFFREY C. PARKER, City Clerk of the City of Tustin, acting as the Successor Agency to the Tustin Community Redevelopment Agency, hereby certify that the above and foregoing Successor Agency Resolution No. 15 -01 was duly adopted by the City of Tustin, acting as the Successor Agency to the Tustin Community Redevelopment Agency, at its regular meeting held on the 20th day of January, 2015, and that it was so adopted by the following vote: AGENCYMEMBER AYES: AGENCYMEMBER NOES: AGENCYMEMBER ABSTAINED: AGENCYMEMBER ABSENT: Jeffrey C. Parker, City Clerk on behalf of Successor Agency Attachment: First Amendment to the Working Capital Loan and Administrative Services Agreement — "Working Capital Loan" S. A. Resolution No. 15 -01 Page 4 of 4