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HomeMy WebLinkAbout15 EMINENT DOMAIN-MCAS & SOUTH CENTRAL 03-20-07AGENDA REPORT Agenda Item 15 Reviewed: City Manager Finance Director N/A MEETING DATE: MARCH 20, 2007 TO: WilliAM HUSTON, CITY MANAGER FROM: CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER SUBJECT: REVElO.PMENT AGENCY ACQUISITION OF REAL PROPERTY BY EMINENT DOMAIN IN THE MCAS TUSTIN AND SOUTH CENTRAL PROJECT AREAS . ) SUMMARY Adoption of the attached ordinances is required as a result of recent changes to California Redevelopment law RECOMMENDATION It is recommended that the City Council: 1. Hold first reading of Ordinance 1333 by title only; 2. Hold first reading of Ordinance 1334 by title only, and; 3. Authorize staff to transmit to the County recorder the revised Official Notices for the MCAS Tustin Redevelopment Project Area and the South Central Redevelopment Project Area. FISCAL IMPACT No direct fiscal impacts associated with the action, with the exception of legal costs associated with ordinance and document preparations. BACKGROUND/DISCUSSION As has previously been reported to the City Council, the legislature in 2006 passed several bills which took effect January 1, 2007 and which impact Redevelopment Agency activities. Two such bills, SB 52 (Kehoe) and SB 1808 (Machado) require follow-up actions by the Agency. Senate Bill 53 added section 33342.7 to the Health & Safety Code. Pursuant to 33342.7, a legislative body that adopted a redevelopment plan before January 1, 2007, must adopt an ordinance on or before July 1, 2007, that contains a description of the redevelopment agency's program to acquire real property by eminent domain. The ordinance must have attached details of the redevelopment agency's program to acquire real property in each project area by eminent as set forth in each project area, the ordinance originally adopting the Redevelopment Plan and in the redevelopment agency's Report to Council. Senate Bill 1809 amended Section 33373 imposing a new recordation requirement on redevelopment plans adopted prior to December 31, 2006, that authorize the use of eminent domain. The Agency must adopt a revised statement in the office of the county recorder on or before December 31, 2007 that contains the following information: . A prominent heading in bold face type noting that the property that is the subject of the statement is located within a project area; . A general description of the provisions of the redevelopment plan that authorize the use of eminent domain, and; . A general description of any limitation on the use of power of eminent domain contained in the redevelopment plan. The Agency's special counsel, Brent Hawkins with McDonough and Holland has prepared the attached ordinances and revised official statements for the MCAS Tustin Project Area and the South Central Project Area. No comparable documents for the Town Center Redevelopment Project have been prepared since its eminent domain authority expired in 2001 and has not been renewed. Any modification of the expired eminent domain authority in the Town Center Project would require a Redevelopment Plan amendment. Staff will be available at the City Council meeting to answer any questions. ",,/ Christine Shingleton Assistant City Manager Attachments Recording Rt'quested by .111<1 \Vllell RCCOf'dcd Retunl to: Panlela Stoker City Clerk City of Tustin 300 Centennial Way Tustin, CA 92780 Exclnpt from recording fees pursuant to Government Code Section 27383 ALL PROPERTY TO WHICH THIS NOTICE PERTAINS IS LOCATED WITHIN THE SOUTH CENTRAL REDEVELOPMENT PROJECT REVISED NOTICE OF ADOPTION OF THE REDEVELOPMENT PLAN FOR THE SOUTH CENTRAL REDEVELOPMENT PROJECT NOTICE IS HEREBY GIVEN, in compliance with Section 33373(c) of the California Health and Safety Code which became effective January 1, 2007, that the City Council of the City of Tustin adopted Ordinance No. 890 on August 1, 1983 (the "Original Project Area") and an1ended by Ordina11ce No. 939 on August 5, 1985 (Amendment No.1) including adding new area to the Project Area (the "Added Area") and as further amended to date, approving and adopting tIle Redevelopment Plan for the South Central Redevelopment Project ("Redevelopment Plan"). The Original Project Area and the Added Area are hereby referred to herein as the "Project Area". The Redevelopment Plan was further amended by Ordinance No. 1223 on November 1, 1999 to re-establish the Agency's eminent domain authority in the Project Area for a twelve year period. The Tustin Community Redevelopment Agency ("Agency") is vested with tIle responsibility to carry out the Redevelopment Plan. A legal descriptions of tIle boundaries of the Original Project Area and the Added Area are attached hereto as Exhibit A and incorporated herein by reference and a copy of the Redevelopment Plan may be obtained from the Agency. Proceedings for the redevelopment of the Project Area, as contemplated by the Redevelopment Plan have been instituted under the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.). 995293v129171jOOOl AGENCY'S EMINENT DOMAIN AUTHORITY. The Agency amended the Redevelopment Plan on November 1, 1999 by Ordinance No. 1223 which extended the Agency's alltllority to exercise eminent domain for an additional 12 years. The eminent domain authority cllrrelltly expires November 1, 2011 and cannot be extended without further amendment of the Redevelopment Plan. Sections 405.1 and 405.2 of the Redevelopment Plan provides as follows: The Agency may acquire but is not required to acquire, any real property located in the Project Area, by any means authorized by law except as specifically exempted as described below. It is in the public interest and is necessary in order to eliminate the conditions requiring redevelopment and in order to execute the Redevelopment Plan, for the power of eminent domain to be employed by the Agency to acquire the real property in the Project Area which cannot be acquired by gift, exchange, purchase or any other lawful method. In the event that eminent domain proceedings shall become necessary, they must be commenced no later than twelve years from the effective date of the ordinance adopting the 1999 An1endment to the South Central Area Redevelopment Project, or not later than November 1, 2011. Such limitation may only be extended by amendment of the Redevelopment Plan. If tIle Agency has adopted a redevelopment plan but has not commenced an eminent domain proceeding to acquire any particular parcel of property subject to eminent domain thereunder within three years after the date of adoption of the plan, the owner or owners of the entire fee at any time thereafter may offer in writing to sell the property to the Agency for its fair Inarket value. If the Agency does not, within 18 months from the date of receipt of the original offer, acquire or institute eminent domain proceedings to acquire the property the property owner or owners may file an action against the Agency in inverse condemnation to recover damages from the Agency for any interference with the possession and use of the real property resulting from the Redevelopment Plan, provided that this section shall not be construed as establishing or creating a presumption to ahy right to damages or relief solely by reason of the failure of the Agency to acquire the property within the time set forth in this section. The Agency is authorized to acquire structures without acqlliring the land upon which these structures are located. The Agency is authorized to acquire either the entire fee or any other interest in real property less than a fee. -2- 995293v129171/0001 l'he Agency shall not acqUIre real property on which an existing building is to be conti11ued on its present site and in its present form and llse without the consent of the owner, unless 1) such building requires structural alteration, improvement, modernization or rehabilitation; 2) the site, or lot on which the building is situated, requires modification in size, shape or use; or 3) it is necessary to impose upon such property any of the controls, limitations or restrictions and requirements of this Redevelopment Plan and the Design for Development and the owner fails or refuses to participate in this Redevelopment Plan by executing a participation agreement. The Agency is not authorized to acquire real property owned by public bodies which do not consent to such acquisition. The Agency is authorized, however, to acquire public property transferred to private ownership before the Project is completed, unless the Agency and the private owner enter into a participation agreement and the owner completes his responsibilities under a participation agreement. As part of the cost of acquisition of all property acquired in the Project Area, the Agency shall compensate each displaced person and business, as provided in the California Relocation Assistance Law (Government Code, Section 7260, et seq.) the guidelines of the California Department of Housing and Community Development adopted and promulgated pursuant thereto, and the Agency's rules and regulations thereto. Generally, personal property shall not be acquired. However, where necessary in the execution of this Redevelopment Plan, the Agency is authorized to acquire personal property in the Project Area by any lawful means except eminent domain. In addition to the above limitations, the Agency has promulgated rules for owner and tenant participation which provide reasonable opportunities for owners of property and tenants in the Project Area to participate in the Redevelopment Plan. Accordingly, the power of eminent domain shall not be exercised except in compliance with the rules and procedures set forth therein and as shall be amended. -3- 995293v129171/0001 Piled for recordation with the County Recorder of Orange County by order of the City Council of the City of Tustin, California. Dated: , 2007. Pamela Stoker City Clerk, City of Tustin Attachment: Legal Descriptions -4- 995293v129171/0001 EXHIBIT A LEGAL DESCRIPTION OF THE ORIGINAL PROJECT AREA AND ADDED AREA Exhibit A 995293v1 29171/0001 Recording RN)Uested by and \Vhen Recorded Retunl to: Panlela Stoker City Clerk City of Tustin 300 Centennial Way Tllstin, CA 92780 Exempt from recording fees pursuant to Government Code Section 27383 ALL PROPERTY TO WHICH THIS NOTICE PERTAINS IS LOCATED WITHIN THE MCAS- TUSTIN REDEVELOPMENT PROJECT REVISED NOTICE OF ADOPTION OF THE REDEVELOPMENT PLAN FOR THE MCAS- TUSTIN REDEVELOPMENT PROJECT NOTICE IS HEREBY GIVEN, in compliance with Section 33373(c) of the California Healtll alld Safety Code which became effective January 1, 2007, that the City Council of the City of Tllstin adopted Ordinance No. 1276 on June 16, 2003, approving and adopting the Redeveloplnent Plan for the MCAS- Tustin Redevelopment Project ("Redevelopment Plan"). The Tllstin Community Redevelopment Agency ("Agency") is vested with the responsibility to carry out the Redevelopment Plan. A legal description of the boundaries of the Project Area is attached hereto as Exhibit A and incorporated herein by reference and a copy of the Redevelopment Plan may be obtained from the Agency. Proceedings for the redevelopment of the Project Area, as contemplated by the Redeveloplnent Plan have been instituted under the California Community Redevelopment Law (Health alld Safety Code Section 33000 et seq.). AGENCY'S EMINENT DOMAIN AUTHORITY. Sections 308, 309 and 310 of the Redevelopment Plan provides as follows: Except as specifically exempted herein, the Agency may acquire, but is not required to acquire, any real property located in the Project Area by any means authorized by law. 995145v129171jOOOl It is in the public interest and is 11ecessary in order to eliminate the conditions requiring redevelopment and in order to execute this Plan for the power of eminent domain to be employed by the Agency to acquire real property in the Tustin Base Portion of the Project Area which cannot be acquired by gift, devise, exchange, purchase, or any other lawful method. The Agency shall have no elninent domain authority within Non-Base Property in the Project Area. Eminent domain proceedings, if used, must be commenced within twelve (12) years from the date the ordinance adopting this Plan becomes effective. The Agency shall not acquire real property to be retained by an owner pursuant to a participation agreement if the owner fully performs under the agreement. The Agency is authorized to acquire structures without acquiring the land upon which those structures are located. The Agency is authorized to acquire either the entire fee or any other interest in real property less than a fee, including, without limitation, a leasehold interest. The Agency shall not acquire real property on which an existing building is to be continlled on its present site and in its present form and use without the consent of the owner unless: (a) such building requires structural alteration, improvement, modernization, or re11abilitation; (b) the site, or lot on which the building is situated, requires modification in size, shape, or llse; or ( c) it is necessary to impose upon such property any of the controls, limitations, restrictions, and requirements of this Plan and the owner fails or refuses to execute a participation agreement in accordance with the provisions of this Plan. The Agency is not authorized to acquire real property owned by public bodies which do not consent to such acquisition. The Agency is authorized, however, to acquire public property transferred to private ownership before redevelopment of the Project Area is completed, unless the Agency and the private owner enter into a participation agreement and the owner completes his responsibilities under the participation agreement. Generally, personal property shall not be acquired. However, where necessary in the execution of this Plan, the Agency is authorized to acquire personal property in the Project Area by any lawflll means, including eminent domain; provided, however, that personal property within the Non-Base Property shall not be acquired by eminent domain. In addition to the above limitations, the Agency has promulgated rules for participation by owners and the extension of preferences for reentry within the redeveloped project area which provide reasonable opportunities for business tenants and owners of property in the Project Area -2- 995145vl 29171/0001 to participate ill the Redevelopment Plan. Because the Project is a military base closure project, it is anticipated that initially these rules will only be applicable to the Non-Base Property but that they will be applicable to future owners and businesses within the entire Project Area. Accordingly, the power of eminent domain shall not be exercised except in compliance with the rules and procedures set forth therein and as shall be amended Filed for recordation with the County Recorder of Orange County by order of the City COUllCil of the City of Tustin, California. Dated: , 2007. Pamela Stoker City Clerk, City of Tustin Attacl1ll1ent: Legal Descriptions -3- 995145v129171/0001 995145v129171/0001 EXHIBIT A LEGAL DESCRIPTION OF THE PROJECT AREA Exhibit A ORDINANCE NO. 1333 AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA CONTAINING A DESCRIPTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY'S PROGRAM TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN IN THE SOUTH CENTRAL REDEVELOPMENT PROJECT WHEREAS, the City Council of the City of Tustin, California ("City Council") adopted Ordinance No. 890 on August 1, 1983 (the "Original Project Area") approving and adopting the Redevelopment Plan for the South Central Redevelopment Project (the "Redevelopment Plan") and amended by Ordinance No. 939 on August 5, 1985 (Amendment No.1) including adding new area to the Project Area (the "Added Area"), as further amended to date. The Original Project Area and the Added Area are hereinafter referred to as the "Project Area". The Redevelopment Plan was further amended on November 1, 1999 by Ordinance No. 1223 to re-establish the Agency's eminent domain authority in the Project Area for twelve years; and WHEREAS, the Tustin Community Redevelopment Agency ("Agency") has been designated as the official redevelopment agency in the City of Tustin to carry out the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS, Sections 405.1 and 405.2 of the Redevelopment Plan contains Agency authority to acquire property by eminent domain; and WHEREAS, Section 33342.7 of the Health and Safety Code was added by Senate Bill 53, which took effect on January 1, 2007, and requires a legislative body that adopted a redevelopment plan containing eminent domain authority before January 1, 2007, to adopt an ordinance on or before July 1, 2007, containing a description of the agency's program to acquire real property by eminent domain; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. A description of the Agency's program to acquire real property by eminent domain is set forth in Exhibit A, attached hereto and incorporated herein by this reference. The Agency's program to acquire real property by eminent domain may be amended only by amending the redevelopment plan pursuant to Article 12 of the Community Redevelopment Law (commencing with Health and Safety Code Section 33450). Section 2. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Ordinance No. 1333 Page 1 of 6 Section 3. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and this City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid portion thereof had been deleted. Section 4. The City Clerk will certify to the passage of this Ordinance by the City Council of the City of Tustin, California, and cause the same to be published once in the Tustin News, a newspaper of general circulation, published and circulated in the City of Tustin, and it will take effect thirty (30) days after its final passage. PASSED AND ADOPTED this day of ,2007 LOU BONE, Mayor ATTEST: PAMELA STOKER City Clerk Ordinance No. 1333 Page 2 of 6 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) 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 five; that the above and foregoing Ordinance was passed and adopted at a regular meeting of the City Council held on the _ day of 2007, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: PAMELA STOKER, City Clerk Ordinance No. 1333 Page 3 of 6 EXHIBIT A DESCRIPTION OF PROGRAM TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN FOR THE SOUTH CENTRAL REDEVELOPMENT PROJECT As provided in Sections 405.1 and 405.2 of the South Central Redevelopment Plan ("Redevelopment Plan"), it is in the public interest and is necessary in order to eliminate the conditions requiring redevelopment and in order to execute the Redevelopment Plan for the power of eminent domain to be employed by the Tustin Community Redevelopment Agency ("Agency") to acquire real property in the South Central Redevelopment Project Area ("Project Area"). This power is necessary because the Project Area is characterized by deteriorated wood structures with serious defects in foundations, walks, roofs, parking accommodations and driveways; contains a large concentration of low-income housing units with substandard pubic improvements; the area lacks public improvements, public facilities, and adequate utilities; the area encompasses private streets without dedication or public improvements; housing within the area is substandard and contains underdeveloped lots; the noise impact from freeway and lacks the amenities of drainage, street lights, sidewalks and landscaping and there is a lack of adequate traffic circulation caused by the dead-end of Newport Avenue at the Orange County Flood Control channel. In approving the Redevelopment Plan, the City Council found and determined that the condemnation of real property within the Project Area, as provided for in the Redevelopment Plan, is necessary to the execution of the Redevelopment Plan and adequate provisions have been made for the payment for any property that is acquired as provided by law. The Agency's power of eminent domain shall be exercised within the following limitations: 1. Eminent Domain proceedings, if used, to acquire property with the Project Area shall not be commenced after November 1, 2011. Commencement of an eminent domain proceeding occurs when a complaint in eminent domain is filed with the Court. 2. If the Agency has adopted a redevelopment plan but has not commenced an eminent domain proceeding to acquire any particular parcel of property subject to eminent domain thereunder within three years after the date of adoption of the plan, the owner or owners of the entire fee at any time thereafter may offer in writing to sell the property to the Agency for its fair market value. If the Agency does not, within 18 months from the date of receipt of the original offer, acquire or institute eminent domain proceedings to acquire the property the property owner or owners may file an action against the Agency in inverse condemnation to recover damages from the Agency for any interference with the possession and use of the real property resulting from the Redevelopment Plan, provided that this section shall not be construed as establishing or creating a resumption to any right to damages or relief solely by reason of the failure of the Agency to acquire the property within the time set forth in this section. 3. The Agency is authorized to acquire structures without acquiring the land upon which these structures are located. The Agency is authorized to acquire either the entire fee or any other interest in real property less than a fee. 4. The Agency shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the consent of the owner, unless (1) such building requires structural alteration, improvement, modernization or rehabilitation; 2) the site, or lot on which the building is situated, requires modification in size, shape or use; or 3) it is necessary to impose upon such property any of the controls, limitations or restrictions and requirements of this Redevelopment Plan and the Design for Development and the owner fails or refuses to participate in this Redevelopment Plan by executing a participation agreement. 5. The Agency is not authorized to acquire real property owned by public bodies which do not consent to such acquisition. The Agency is authorized, however, to acquire public property transferred to private ownership before the Project is completed, unless the Agency and the private owner enter into a participation agreement and the owner completes his responsibilities under a participation agreement. 6. As part of the cost of acquisition of all property acquired in the Project Area, the Agency shall compensate each displaced person and business, as provided in the California Relocation Assistance Law (Government Code, Section 7260, et seq.) the guidelines of the California Department of Housing and Community Development adopted and promulgated pursuant thereto, and the Agency's rules and regulations thereto. . In addition to the above limitations, the Agency has promulgated rules for owner and tenant participation which provide reasonable opportunities for owners of property and tenants in the Project Area to participate in the Redevelopment Plan. Accordingly, the power of eminent domain shall not be exercised except in compliance with the rules and procedures set forth therein and as shall be amended Ordinance No. 1333 Page 2 of 6 ORDINANCE NO. 1334 AN ORDINANCE OF THE CITY OF TUSTIN, CALIFORNIA CONTAINING A DESCRIPTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY'S PROGRAM TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN IN THE MCAS-TUSTIN REDEVELOPMENT PROJECT WHEREAS, the City Council of the City of Tustin, California ("City Council") adopted Ordinance No. 1276 on June 13, 2003, approving and adopting the Redevelopment Plan for the MCAS- Tustin Redevelopment Project (the "Redevelopment Plan"); and WHEREAS, the Tustin Community Redevelopment Agency ("Agency") has been designated as the official redevelopment agency in the City of Tustin to carry out the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS, Sections 308, 309 and 310 of the Redevelopment Plan contains Agency authority to acquire property by eminent domain; and WHEREAS, Section 33342.7 of the Health and Safety Code was added by Senate Bill 53, which took effect on January 1, 2007, and requires a legislative body that adopted a redevelopment plan containing eminent domain authority before January 1 , 2007, to adopt an ordinance on or before July 1, 2007, containing a description of the agency's program to acquire real property by eminent domain; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. A description of the Agency's program to acquire real property by eminent domain is set forth in Exhibit A, attached hereto and incorporated herein by this reference. The Agency's program to acquire real property by eminent domain may be amended only by amending the redevelopment plan pursuant to Article 12 of the Community Redevelopment Law (commencing with Health and Safety Code Section 33450). Section 2. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 3. If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and this City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid portion thereof had been deleted. Ordinance No. 1334 Page 1 of 6 Section 4. The City Clerk will certify to the passage of this Ordinance by the City Council of the City of Tustin, California, and cause the same to be published once in the Tustin News, a newspaper of general circulation, published and circulated in the City of Tustin, and it will take effect thirty (30) days after its final passage. day of , 2007. PASSED AND ADOPTED this LOU BONE, Mayor ATTEST: PAMELA STOKER City Clerk Ordinance No. 1334 Page 2 of 6 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) 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 five; that the above and foregoing Ordinance was passed and adopted at a regular meeting of the City Council held on the _ day of 2007, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: PAMELA STOKER, City Clerk Ordinance No. 1334 Page 3 of 6 EXHIBIT A DESCRIPTION OF PROGRAM TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN FOR THE MCAS-TUSTIN REDEVELOPMENT PROJECT As provided in Sections 308, 309 and 310 of the MCAS-Tustin Redevelopment Plan ("Redevelopment Plan"), it is in the public interest and is necessary in order to eliminate the conditions requiring redevelopment and in order to execute the Redevelopment Plan for the power of eminent domain to be employed by the Tustin Community Redevelopment Agency ("Agency") to acquire real property in the MCAS-Tustin Redevelopment Project Area ("Project Area"). This power is necessary because the Project Area is characterized by structures exhibiting. conditions of deterioration and dilapidation, and defective design and physical construction; a number of buildings are either too small or too large for reuse and/or were not .built to the then effective local building, plumbing, mechanical or electrical codes; many of the military improvements, including runways and landing pads, will need to be removed to allow development to occur; further inhibiting development is an inadequate infrastructure system, which has deficient circulation, water and sewer systems; and hazardous materials are present on the Base and require remediation. In approving the Redevelopment Plan, the City Council found and determined that the condemnation of real property within the Project Area, as provided for in the Redevelopment Plan, is necessary to the execution of the Redevelopment Plan and adequate provisions have been made for the payment for any property that is acquired as provided by law. The Agency's power of eminent domain shall be exercised within the following limitations: 1 . . The condemnation of real property within the Tustin Base Portion of the Project Area, as provided for in the Redevel.opment Plan, is necessary to the execution of the Redevelopment Plan, and adequate provisions have been made for the payment for property to be acquired as provided by law. The Agency shall have no eminent domain authority within the Non-Base Property in the Project Area. 2. Eminent Domain proceedings, if used, to acquire property with the Project Area shall not be commenced after June 13, 2015. Commencement of an eminent domain proceeding occurs when a complaint in eminent domain is filed with the Court. 3. The Agency shall not acquire real property to be retained by an owner pursuant to a participation agreement if the owner fully performs under the agreement. The Agency is authorized to acquire structures without acquiring the land upon which those structures are located. The Agency is authorized to acquire either Exhibit A, Page 1 995401 vI 29171/0001 the entire fee or any other interest in real property less than a fee, including, without limitation, a leasehold in~erest. 4. The Agency shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the consent of the owner unless: (a) such building requires structural alteration, improvement, modernization, or rehabilitation; (b) the site, or lot on which the building is situated, requires modification in size, shape, or use; or (c) it is necessary to impose upon such property any of the controls, limitations, restrictions, and requirements of this Plan and the owner fails or refuses to execute a participation agreement in accordance with the provisions of this Plan. 5. The Agency is not authorized to acquire real property owned by public bodies which do not consent to such acquisition. The Agency is authorized, however, to acquire public property transferred to private ownership before redevelopment of the Project Area is completed, unless the Agency and the private owner enter into a participation agreement and the owner completes his responsibilities under the participation agreement. In addition to the above limitations, the Agency has promulgated rules for participation by owners and the extension of preferences for reentry within the redeveloped project area which provide reasonable opportunities for business tenants and owners of property in the Project Area to participate in the Redevelopment Plan. Accordingly, the power of eminent domain shall not be exercised except in compliance with the rules and procedures set forth therein and as shall be amended. Initially these rules were anticipated to be applicable only to the Non-base property but will be applicable to future owners and businesses within the entire Project Area. Ordinance No. 1334 Page 2 of 6