HomeMy WebLinkAboutRDA TIME LIMITS AMD 11-21-94 NO.
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Intor-Corn
)ATE:
NOVEMBER 21, 1994
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM' COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: REDEVELOPMENT PLAN AMENDMENTS (ORDINANCES 1141 AND 1142) TIME
LIMITS
RECOMMENDATION
It is recommended that the City Council adopt Urgency Ordinances
No. 1141 and 1142, bringing the Town Center and South Central
Redevelopment Plans into compliance with State-mandated time
limits.
FISCAL IMPACT
Ordinance 1141 and Ordinance 1142 will not have any immediate
fiscal impact on either the Town Center or the South Central
Redevelopment Plans. However, both Ordinances may have a potential
effect on the Agency's future options to issue bonds to implement
the Redevelopment Plans. It is not possible, at this time, to
calculate what these impacts will be.
BACKGROUND AND DISCUSSION
AB 1290, adopted as part of the 1993 State legislative session made
major revisions to the California Community Redevelopment Law in
order to eliminate what the Legislature perceived to be abuses of
the California Redevelopment LaW. Among these changes were
establishment of time limits dealing with. the following: (1) the
effective life of Redevelopment Plans; (2) the time in which an
Agency can incur debt; and (3) the time in which the Agency can
collect tax increment to service debt after the end of the
effectiveness of a Redevelopment Plan.
The Council has no discretion in this matter. AB 1290 requires the
City Council to amend both the Town Center and the South Central
Redevelopment Plans to conform to these time limits.
AB 1290 requires the following time limits be included in all
Redevelopment Plans:
City Council Report
Ordinances~.ll41 and 1142
November 21, 1994
The effective date of the Redevelopment Plan can be no
longer than forty (40) years.
.
The last date an Agency may incur debt, loans or advances
is twenty (20) years after adoption of the Redevelopment
Plan, or January 1, 2004, whichever is later.
.
The last date the Agency can collect tax increment in
order to retire debt is ten years after the termination
of the redevelopment plan.
In the case of a redevelopment plan which was amended to add
territory (in Tustin, only the South Central Redevelopment Plan)
these time limits run from the date of the amendment for the area
which was added by the amendment.
Town Center Redevelopment Plan
The Town Center Redevelopment Plan was originally adopted on
November 22, 1976. It was amended on September 8, 1981 to modify
financial provisions and amended a second time on March 20, 1989,
again to modify financial provisions. It has never been amended to
add territory.
Under the current provisions of the Redevelopment Plan, thePlan is
effective for thirty years after the second amendment, or April 19,
2019. This exceeds the 40 year time limit from original adoption
allowed by AB 1290. Therefore the Plan must be amended to change
its effective date to November 22, 2016.
Currently, the Plan has a time limit for incurring debt, advances
and loans of November 22, 2006. This exceeds the later date
allowed by AB 1290, which is January 1, 2004. Therefore, the Plan
must be amended to limit the time for incurring debt to January 1,
2004.
The Town Center Redevelopment Plan does not have a determinate time
limit after the termination of the Plan during which the Agency can
continue to collect tax increment to retire outstanding debt. Since
AB 1290 limits this time to ten (10) years after the termination of
the Redevelopment Plan, the Town Center Redevelopment Plan must be
amended to limit collection of tax increment to November 22, 2026.
In summary, the following are the required new time limits for the
Town Center Redevelopment Plan:
City Council Report
Ordinances 1141 and 1142
November 21, 1994
Effective Date of Redevelopment Plan
Last Date to Incur Debt
Last Date to Collect Tax Increment
to Retire Debt
November 22, 2016
January 1, 2004
November 22, 2026
Ordinance 1141 includes the required amendments to the Town Center
Redevelopment Plan and is attached for the Council's adoption.
South Central Redevelopment Plan
The South Central Redevelopment Plan was originally adopted on July
18, 1983. It was amended on July 15, 1985 to add the area bounded
by Edinger Avenue On the North, Red Hill' Avenue on the east,
Valencia Street on the South and SR55 on the west. This is the area
covered by the Pacific Center East Specific Plan.
As noted above, the mandatory time limits extend from the date of
adoption of the original redevelopment plan, or, in the case of an
amendment to add territory, from the adoption of the amendment for
the territory added.
Under the existing redevelopment plan, the Plan is effective for
both areas until July 15, 2015. For both the original area and the
amended area, this is within the forty years allowed by AB 1290.
Therefore, there is no change required in the effective dates of
the Redevelopment Plan for either the original area or the added
area.
Also, under the existing plan, the time limit for incurring debt,
advances and loans is July 15, 2015. AB 1290 limits the incurring
of debt to twenty (20) years or January 1, 2004, whichever is
later. For the original project area, the time limit must be
changed to January 1, 2004. For the amended area, the time limit
must be amended to July 15, 2005, based on the twenty (20) year
limit.
The current plan does not have a time limit for receipt of tax
increment after the termination of the Redevelopment Plan. Since AB
1290 requires a limit of 10 years after the termination of the
plan, both the original and amended areas will be limited to July
15, 2025.
The following are the new time limits for the South Central
Redevelopment Plan as required by AB 1290.
City Council Report
Ordinances 1141 and 1142
November 21, 1994
South Central Redevelopment Plan: Oriqinal Project Ares
Effective Date of Redevelopment Plan July 15, 2015
Last Date to Incur Debt January 1, 2004
Last Date to Collect Tax Increment
to Retire Debt July 15, 2025
South Central Redevelopment Plan: Added Area
Effective Date of Redevelopment Plan July 15, 2015
Last Date to Incur Debt July 15, 2005
Last Date to. Collect Tax Increment
to Retire Debt July 15, 2025
Ordinance 1142 incorporates the new time limits for the South
Central Redevelopment Plan and is attached for City Council
approval.
URGENCY ORDINANCE
Since the Redevelopment Plans are adopted by Ordinance, the Council
must amend them by Ordinance. AB 1290 requires that the two
redevelopment plans be amended before December 31, 1994. In order
to accomplish this, the City Attornay's Office has recommended the
City Council adopt these ordinances as Urgency Ordinances, which
requires a four-fifths vote of the City Council. As urgency
ordinances, they become effective immediately upon second reading,
scheduled for the Council meeting of December 5, 1994. If these are
not adopted as urgency ordinances, the 30 day referendum period
would not allow them to be effective until January 4, 1995, after
the State mandated deadline.
RECOMMENDED ACTIONS
It is recommended the City Council adopt, by a four-fifths (4/5)
vote, the attached Ordinances 1141 and 1142, amending the Town
Center and South Central Redevelopment Plans.
Christine A~on
Assistant City Manager
Richard -Zi~ em~
Redevelopment Program Manager
r zimmer \ redevgen\ t iml imt. cc
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ORDINANCE NO. 1141
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF TUSTIN,~ CALIFORNIA, AMENDING
CERTAIN TIME LIMITATIONS WIT}{ RESPECT TO THE
TOWN CENTER REDEVELOPMENT PLAN
The City Council of the City of Tustin does hereby ordain
as follows:
I. The City Council finds and determines as follows:
ae
That the City Council adopted the Town Center
Redevelopment Plan on November 22, 1976 by
Ordinance No. 701 and subsequently amended the
Redevelopment Plan on September 8, 1981 by
Ordinance No. 855 and further amended the
Redevelopment Plan on March 20, 1989 by
Ordinance No. 1021;
B ·
That Section 33333.6 of the Community
Redevelopment Law established certain
limitations on the incurring of indebtedness,
the duration of the effectiveness of
redevelopment plans, ~and the collection of
taxes from redevelopment project areas adopted
on or before December 31, 1993;
Ce
That Section 33333.6 of the Community
Redevelopment Law mandates limits to the
incurring of debt to twenty (20) years after
the date of adoption of the redevelopment plan
or January 1, 2004, whichever is later; limits
to the effectiveness of redevelopment plans to
40 years from the date of adoption of the plan
or January 1, 2009, whichever is later; and
limits to the repayment of indebtedness or
receipt of property taxes pursuant to Section
33670 of the Community Redevelopment Law to
ten (10) years from the termination of the
effectiveness of the redevelopment plan;
De
That The Town Center Redevelopment Plan
currently has a time limit for incurring debt
of November 22, 2006, an indeterminate time
limit for repayment of indebtedness or receipt
of property taxes and a time limit on the
effectiveness of the Redevelopment Plan of
thirty (30) years after the Second Amendment,
or April 19, 2019;
E·
That the Redevelopment Agency on November 21,
1994, recommended approval of the proposed
Town Center Redevelopment Plan Amendment;
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Ordinance No. 1141
Page 2
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That a public hearing was duly noticed, called
and held on December 5, 1994 by the City
Council.
G.
That incorporation into the Town Center
Redevelopment Plan of the time limits set
forth in Section 33333.6 of the Health and
Safety Code is mandated by law and is
therefore not a discretionary act by the City.
Accordingly, this action does not constitute a
"project" within the meaning of the California
Environmental Quality Act (Public Resources
Code Sections 21000 et seq.) and is not
subject to environmental review.
He
State law adoPted by the California
Legislature, Statutes of 1993, Chapter 942,
Assembly Bill 1290, Health and Safety Code
Section 33333.6, mandates that the time limits
prescribed in said section shall be applied in
the Town Center Redevelopment Plan on or
before December 31, 1994. Compliance with this
State-mandated action is only possible if this
Ordinance is adopted by the City Council of
the City of Tustin as an urgency ordinance
pursuant to the provisions of the Government
Code, approved by a four-fifths vote of the
City Council, to be effective immediately upon
adoption, in order to fully provide and
protect the public peace, health and safety of
the citizens of Tustin by full receipt of the
benefits and protections of the California
Community Redevelopment Law.
II. NOW, THEREFORE, the City Council of the City of Tustin
DOES HEREBY ORDAIN as follows:
Section 1. Section 600 (Limitations on Finances),
Paragraph 2 of the Town Center Redevelopment Plan shall be amended
to read as follows:
"A. The Agency shall not establish loans, advances and
indebtedness to be paid with the proceeds of property
taxes received pursuant to Section 33670 of the Community
Redevelopment Law to finance in whole or in part the Town
Center Redevelopment Project after January 1, 2004,
unless the Town Center Redevelopment Plan is amended
pursuant to State Law."
Section 2. Section 1000 (Duration of the Plan) shall be
amended to read: as follows:
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Ordinance No ' 11=~
Page 3
~B. Except.for the non%discrimination and non-segregation
provisions which shall run in perpetuity, the provisions
of the Town Center Redevelopment Plan shall be effective
through November 22, 2016; provided, however, that the
Agency may pay indebtedness and receive property taxes
within the Town Center Project Area pursuant to Section
33670 through November 22, 2026."
Section 3. The City Council hereby approves and adopts
this Ordinance by the required foUr-fifths (4/5) vote as an urgency
ordinance pursuant to GoVernment Code Section 36937 in order to
protect and maintain all benefits and protections of the California
Redevelopment Law for the preservation of the public peace, health
and safety by effecting compliance with mandated state law and
preservation of all the rights and benefits of the Community
Redevelopment Law for the public health and safety of the citizens
of Tustin.
PASSED AND ADOPTED by a four-fifths (4/5) vote of the City Council
at a regular meeting of the Tustin City Council held on the
day of December, 1994.
THOMAS R. SALTARELLI
MAYOR
MARY E. WYNN
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1141
MARY.E. WYNN, 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 five; that the above and foregoing Ordinance No. 1141 was
passed and adopted at a regular meeting of the City Council held on
the day of December, 1994, by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
28 MARY E. WYNN, City Clerk
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ORDINANCE NO. 1142
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALI'FORNIAi AMENDING CERTAIN TIME LIMITATIONS
WITH RESPECT TO THE SOUTH CENTRAL REDEVELOPMENT PLAN
The City Council of the City of Tustin does hereby ordain as
follows:
I. The City Council finds and determines as follows:
ae
B ·
That the City Council adopted the South Central
Redevelopment Plan on August 1, 1983 by Ordinance
No. 890 and subsequently amended the Redevelopment
Plan, including adding territory to the Project
Area, on July 15, 1985 by Ordinance No. 939.
(Attachment 1, hereto, identifies the original
project area adopted by Ordinance No. 890 and
Attachment 2, hereto, identifies the area added to
the Project Area by Ordinance No. 939);
That Section 33333.6 of the Community Redevelopment
Law established certain limitations on the
incurring of indebtedness, the duration of the
effectiveness of redevelopment plans, and the
collection of taxes from redevelopment project
areas adopted on or before December 31, 1993;
C.
That Section 33333.6 of the Community Redevelopment
Law mandates limits to the incurring of debt to
twenty (20) years after the date of adoption of the
redevelopment plan or, with respect to added
territory, from the date of an amendment to a
redevelopment plan which adds territory to the
project area, or January 1, 2004, whichever is
later; limits to the effectiveness of redevelopment
plans to 40 years from the date of the adoption of
the redevelopment plan, or, with respect to added
territory, from the date of an amendment to a
redevelopment plan which adds territory to the
project area, or January 1, 2009, whichever is
later; and limits to the repayment of indebtedness
or receipt of property taxes pursuant to Section
33670 of the Community Redevelopment Law to ten
(10) years from the termination of the
effectiveness of the redevelopment plan,
De
That the South Central Redevelopment Plan currently
has a time limit for incurring debt of July 15,
2015, no time limit for repayment of indebtedness
or receipt of property taxes and a time limit on
the effectiveness of the Redevelopment Plan of
thirty (30) years after the Amendment adopted by
Ordinance No.939, or July 15, 2015;
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Ordinance'No. 11~2
Page 2
E .
Fe
S.
H.
That the Redevelopment Agency on November 21, 1994,
recommended approval of the proposed South Central
Redevelopment Plan Amendment;
That a public hearing was duly noticed, called and
held on November 21, 1994-by the City Council.
That incorporation into the South Central
Redevelopment Plan of the time limits set forth in
Section 33333.6 of the Health and Safety Code is
mandated by law and is therefore not a
discretionary act by the City. Accordingly, this
action does not constitute a "project" within the
meaning of the California Environmental Quality Act
(Public Resources Code Sections.21000 et seq.) and
is not subject to environmental review.
State law adopted by the California Legislature,
Statutes of 1993, Chapter 942, Assembly Bill 1290,
Health and Safety Code Section 33333.6, mandates
that the time limits prescribed in said section
shall be applied in the South Central Redevelopment
Plan on or before December 31, 1994. Compliance
with this State-mandated action is only possible if
this Ordinance is adopted by the City Council of
the City of Tustin as an urgency ordinance pursuant
to the provisions of the Government Code, approved
by a four-fifths vote of the City Council, to be
effective immediately upon adoption, in order to
fully provide and protect the public peace, health
and safety of the citizens of Tustin by full
receipt of the benefits and protections of the
California Community Redevelopment Law.
II. NOW, THEREFORE, the City Council of the City of Tustin
DOES HEREBY ORDAIN as follows:
Section 1. Section 600 (Limitations on Finances),
Paragraph 2 of the South Central Redevelopment Plan shall be
amended to read as follows:
"A. With respect to the original South Central Project Area
adopted by Ordinance 890, shown in Attachment 1 to
Ordinance 1142, the Agency shall not establish loans,
advances and indebteclness to be paid with the proceeds of
property taxes received pursuant to Section 33670 of the
Community Redevelopment Law to finance in whole or in
part the redevelopment project after January 1, 2004,
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Ordinance No. 1142
Page 3
·
unless the Redevelopment Plan is amended pursuant to
State Law.
With respect to the territory added to the project area
by Ordinance 939, Shown in Attachment 2 to Ordinance
1142, the Agency shall not establish loans, advances and
indebtedness to be paid with the proceeds of property
taxes received pursuant to Section 33670 of the Community
Redevelopment Law to finance in whole or in part the
redevelopment project after July 15, 2005, unless the
Redevelopment Plan is amended pursuant to State Law."
Section 2. Section 1000 (Duration of the Plan) shall be
amended to read: as follows:
"A. With respect to the original South Central Project Area
adopted by Ordinance 890, shown in Attachment 1 to
Ordinance 1142, and except for the non-discrimination and
non-segregation provisions which shall run in perpetuity,
the provisions of the South Central Plan shall be
effective through July 15, 2015; provided, however, that
the Agency may pay indebtedness and receive property
taxes within South Central Project Area pursuant to
Section 33670 through July 15, 2025, unless the
Redevelopment Plan is amended pursuant to State Law.
B.~ With respect to the territory added to the project area
by Ordinance 939, shown in Attachment 2 to Ordinance
1142, and except for the non-discrimination and non-
segregation provisions which shall run in perpetuity, the
provisions of the South Central Redevelopment Plan shall
be effective through July 15, 2015; provided, however,
that the Agency may pay indebtedness and receive property
taxes within the South Central Redevelopment Project Area
pursuant to Section 33670 through July 15, 2025, unless
the Redevelopment Plan is amended pursuant to State Law."
Section 3. The City Council hereby approves and adopts
this Ordinance by the required four-fifths (4/5) vote as an urgency
ordinance pursuant to Government Code Section 36937 in order to
protect and maintain all benefits and protections of the California
Redevelopment Law for the preservation of the public peace, health
and safety by effecting compliance with mandated state law and
preservation of all the rights and benefits of the Community
Redevelopment Law for the public health and safety of the citizens
of Tustin.
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Ordinance No. 1142
Page 4
PASSED AND ADOPTED by a four-fifths (4/5) vote of the City Council
at a regular meeting of the Tustin City Council held on the
day of December, 1994.
THOMAS R. SALTARELLI
MAYOR
MARY E. WYNN
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1142
MARY E. WYNN, 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 five; that the above and foregoing Ordinance was passed
and adopted at a regular meeting of the City Council held on the
5th day of December, 1994, by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
MARY E. WYNN, City Clerk
ATTACHMENT 1
ORDINANCE NO. 1142
ORIGINAL REDEVELOPMENT PROJECT AREA
SOUTH CENTRAL REDEVELOPMENT PLAN
Page 1 of 2
ATTACHMENT 1
ORDINANCE NO. 1142
ORIGINAL REDEVELOPMENT PROJECT AREA
SOUTH ~CENTRAL REDEVELOPMENT ~LAN
·
Page 2 of 2
ATTACHMENT 2
ORDINANCE NO'. 1142
ADDED REDEVELOPMENT PROJECT AREA
'SOUTH CENTRAL REDEVELOPMENT PLAN
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