City of Anaheim COMMUNITY DEVELOPMENT DEPARTMENT

Transcription

1 CITY COUNCIL STAFF REPORT City of Anaheim COMMUNITY DEVELOPMENT DEPARTMENT DATE: JANUARY 10, 2012 FROM: SUBJECT: COMMUNITY DEVELOPMENT DEPARTMENT ELECTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM TO SERVE AS THE SUCCESSOR AGENCY TO THE ANAHEIM REDEVELOPMENT AGENCY ATTACHMENT (YIN): YES ITEM#07 RECOMMENDA non: That the City Council of the City of Anaheim, by Resolution, elect to serve as the successor agency to the Anaheim Redevelopment Agency under Part 1.85 of Division 24 of the California Health and Safety Code. DISCUSSION: The California State Legislature adopted Assembly Bill Xl 26 and Assembly Bill Xl 27 (AB 26 and AB 27, respectively) in June AB 26 immediately suspended most of the authority of redevelopment agencies throughout the State of California and provided for their dissolution effective as of October 1, AB 27 established a Voluntary Alternative Redevelopment Program, whereby a redevelopment agency was able to be exempt from dissolution under AB 26 and could continue to exist and function upon the enactment of an ordinance of the legislative body that created the redevelopment agency, thereby committing itself to comply with the provisions of AB 27 and to make annual remittance payments to the Orange County Auditor-Controller ("County"). The City Council adopted such an ordinance and thereafter approved the terms of an Agreement to Transfer Tax Increment with the Anaheim Redevelopment Agency ("Agency"), whereby the Agency agreed on an annual basis to transfer tax increment to the City in an amount not to exceed the amount the City would be required to remit to the County. The California Redevelopment Association ("CRA") and the Leal,'Ue of California Cities challenged the constitutionality of both bills. On December 29, 2011, the California Supreme Court delivered its decision, finding AB 26 constitutional and AB 27 unconstitutional, meaning that all redevelopment agencies, including the Agency, will be dissolved effective Febmary I, 2012 and none will have the oppoltunity to be exempt from dissolution and continue to exist and function by opting into the Voluntary Alternative Redevelopment Program. 201 S. Anaheim Blvd. Suite #1003 Anaheim, CA Tel: (714) Fax: (714) Accordingly, Pmt 1.85 of AB 26 provides that, upon dissolution of each redevelopment agency, a "successor agency" shall administer the enforceable obligations of the Agency and otherwise wind up the Agency's affairs, all subject to the review and approval of an "oversight board". Pursuant to Section 34173, the City

2 REMITTANCE FUNDING AGREEMENT January 10,2011 Page 2 of2 Council of the City of Anaheim can elect to have the City serve as the successor agency to the Agency. As the successor agency, the City would assume responsibility for all obligations, authority, rights, powers, duties and obligations of the former Anaheim Redevelopment Agency. IMPACT ON BUDGET: The extent of the fiscal impact to the General Fund is currently unknown but it is expected that allocated property tax revenue will pay for costs associated with and incurred by the City in connection with perfonning its functions as a successor agency. Respectfully submitted, Concur: Brad L. Hobson Deputy Director of Community Development John E. Woodhead IV Acting Executive Director Attachments: 1. Resolution

3 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM ELECTING TO SERVE AS THE SUCCESSOR AGENCY TO THE ANAHEIM REDEVELOPMENT AGENCY UNDER PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE. WHEREAS, the Anaheim Redevelopment ("Agency") is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, el seq. ("CRL"), and has 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 Anaheim ("City"); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Amended and Restated Redevelopment Plan ("Redevelopment Plan") for the Anaheim Merged Project Area ("Redevelopment Project") which was adopted by and through a series of ordinances of the City Council of the City, specifically Ordinance Nos , , and 6034: and WHEREAS, the California State Legislature, in conjunction with the Fiscal Year State budget, passed Assembly Bill Xl 26 and Assembly Bill XI 27 ("AB 26" and "AB 27". respectively) on June which were approved by the Governor on June 28, 2011 and chaptered by the Secretary of State on June 29, 20 II; and WHEREAS, AB 26 amended specified provisions of the CRL and added Parts 1.8 and 1.85 of Division 24 of the Health and Safety Code, which immediately suspended most of the authority of redevelopment agencies and provided for their dissolution effective as of October 1,2011; and WHEREAS, AB 27 added Part 1.9 to the CRL, which established a Voluntary Alternative Redevelopment Program, whereby a redevelopment agency was able to be exempt from dissolution under AB 26 and could continue to exist and function under the CRL upon the enactment of an ordinance by the legislative body that created that redevelopment agency. thereby committing itself to comply with the provisions of AB 27 and to make annual remittance payments to the County Auditor-Controller ("County"); and WHEREAS, this City Council adopted Ordinance No on July for the purpose of electing to comply with and participate in the Alternative Voluntary Redevelopment Program in order to allow the Agency to continue in operation and perform its functions under the CRL; and

4 WHEREAS, following the enactment of Ordinance No. 62 I 7 and as a condition of the Agency's continued existence and operation, the City Council and the governing board of the Agency adopted Resolutions No. 201 J-135 and ARA , respectively, on September 27,2011 approving that certain Agreement to Transfer Tax Increment between the Agency and the City, whereby the Agency agreed on an annual basis to transfer tax increment to the City in an anl0unt not to exceed the amotlllt the City would be required to remit to the County pursuant to AB 27 for the purposes of financing activities within the City's Redevelopment Project related to accomplishing the goals of the Redevelopment Plan for the Redevelopment Project; and WHEREAS, the validity, passage, and applicability of AB 26 and AB 27 were tbe subjects of a judicial challenge brought by the California Redevelopment Association ("CRA") and the League of California Cities in their own capacity and on behalf of their members in California Redevelopment Associatian. el al v. Ana Matosantos. el al. (the "CRA Action"): and WHEREAS, the California Supreme Court delivered its decision in the CRA Action on December 29,2011, finding AB 26 constitutional and AB 27 unconstitutional, meaning that all redevelopment agencies, including the Agency, will be dissolved under AB 26 effective February 1, 2012 and none will have the opportunity to be exempt from dissolution and continue to exist and function under the CRL by opting into the Voluntary Alternative Redevelopment Program under AB 27; and WHEREAS, Part 1,85 of the CRL ("Pan 1,85") provides that, upon dissolution of all redevelopment agencies, a "successor agency" shall administer the enforceable obligations of the Agency and otherwise wind up the Agency's affairs, all subject to the review and approval by an "oversight board"; and WHEREAS, a "successor agency" is defined in CRL Section to mean the county, city, or city and county that authorized the creation of each redevelopment agency, or another entity as provided in CRL Section 34173; and WHEREAS, the City Council desires to elect to have the City of Anal1eim serve as the "successor agency" to the Agency under Part 1.85, effective on February 1,2012 or on such later date as may be specified through the enactment of legislation passed by the California State Legislature; and WHEREAS, the City Council has duly considered all other related matters and has determined that its election to have the City of Anal1eirn serve as the "successor agency" to the Agency under Part 1,85 is in the best interests of the Agency, the City, and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements.

5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES RESOLVE AS FOLLOWS: Section 1. The foregoing Recitals are incorporated into this Resolution by this reference. and constitute a material pan of this Resolution. Section 2. Pursuant to CRL Section 34173, the City Council hereby elects to have the City of Anaheim serve as the "successor agency" to the Agency under Pan This resolution shall be interpreted and applied in all respects in accordance with such section and Part 1.85 to the fullest extent permitted by law. Section 3. Except for those provisions of the CRL that are repeated, restricted, or revised pursuant to AB 26, as amended, modified or supplemented by the California Supreme Coun in its decision in the CRA Action, this City Council hereby assumes all authority, rights, powers, duties, and obligations previously vested with the Agency under the CRL effective upon dissolution of the Agency on February 1,2012 or on such later date as may be specified tlrrough the enactment oflegislation passed by the California State Legislature. Section 4. On or before January 13,2012, the City Clerk (or her designee) is hereby authorized and directed to tile a certified copy of this resolution with the Orange County Auditor-Controller. THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS 10th DAY OF Jinm;y 2012, BY THE FOLLOWING ROLL CALL VOTE: AYES: NOES: Mayor Tait, Council Manbers Galloway, SiClhu, Eastman and Murray None ABSTAIN: None Tob Tait, Mayor