HomeMy WebLinkAboutRedevelopment Agency - 364 RESOLUTION NO. 364
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH APPROVING AN OWNER
PARTICIPATION AGREEMENT AMONG THE CITY, THE
AGENCY AND MAKALLON ATLANTA HUNTINGTON
BEACH, LLC AND MAKING CERTAIN DETERMINATIONS
AND FINDINGS
WHEREAS,the Redevelopment Agency of the City of Huntington Beach(the"Agency")is
engaged in activities necessary to carry 'out and implement the Redevelopment Plan
("Redevelopment Plan") for the Merged Redevelopment Project Area (the "Project Area") of the _
City of Huntington Beach; and
In order to implement and further the goals and objectives of the Redevelopment Plan, the
Agency, the City of Huntington Beach ("City") and Makallon Atlanta Huntington Beach, LLC
("Participant")have negotiated the terms of an Owner Participation Agreement(the"Agreement").
The Agreement provides, among other things, for Participant to design, develop, install and
construct: (i) a Senior Center; (ii) a regional urban runoff treatment center for the First Street
watershed storm flows ("Regional Treatment System"); and (iii) the extension of Pacific View
Avenue from Huntington Street to First Street("Pacific View Avenue Extension"). The Regional
Treatment System and the Pacific View Avenue Extension are collectively referred to herein as the
"Public Improvements". The Agreement also provides that the Agency will reimburse Participant,
subject to all of the terms and conditions of the Agreement, certain costs related to the Public
Improvements. Also pursuant to the Agreement, the Participant will pay the Agency an affordable
housing in-lieu fee and the Agency would cause to be developed a certain number of affordable
housing units. The Agreement also provides for the termination of an existing agreement between
the City and Participant's predecessor-in-interest to the site,Huntington Beach Company, entitled
"Agreement between the City of Huntington Beach and the Huntington Beach Company Concerning
Huntington Beach Company's Atlanta Avenue Site" dated as of December 15, 1986; and
Pursuant to Section 33445(a)of the California Community Redevelopment Law(Health&
Safety Code Section 33000 et seq.)("CRL"),the Agency may,with the consent of the City Council
("City Council")of the City,pay all or part of the value of the land for and the cost of the installation
and construction of any facility, structure, or other improvements which is publicly owned either
within or outside a project area, if the City Council makes certain determinations; and
Pursuant to Sections 33421 and 33421.1 of the CRL, the Agency may cause, provide or
undertake or make provision with other agencies for the installation, or construction of streets,
utilities, parks, playgrounds, or other public improvements necessary for carrying out the
Redevelopment Plan in the Project Area upon consent of the City Council; and
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Agency Res . No . 364
The fulfillment generally of the Agreement is in the vital and best interests of the City and the
health,safety,and welfare of its residents,and in accord with the public purposes and provisions of
applicable federal, state and local laws and requirements; and
It is in the best interests of the City and for the common benefit of residents, employees,
business tenants and property owners within the Project Area and the City as a whole for the Public
Improvements to be installed and constructed; and
Since there are no other reasonable means available to the City to finance the installation and
construction of the Public Improvements,the Agency proposes to reimburse Participant a portion of
the cost of the installation and construction of the Public Improvements; and
The Agency's agreement to pay part of the value of the cost of the installation and _
construction of the Public Improvements constitutes an indebtedness of the Agency for the purpose
of carrying out the redevelopment for the Project Area; and
The Public Improvements are of benefit to the Project Area and the immediate neighborhood
in which the Public Improvements are located; and
The provision of the Public Improvements is necessary to effectuate the purposes of the
Redevelopment Plan; and
All other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH AS FOLLOWS:
1. The Agency hereby finds and determines that the foregoing recitals are true and
correct.
2. Based on substantial evidence in the record,the Agency hereby finds and determines
that:
a. The construction and installation of the Public Improvements are necessary to
effectuate the purposes of the Redevelopment Plan and are of benefit to the
Project Area and the immediate neighborhood in which the Public
Improvements are located. This determination is based, in part, on the fact
that the construction and installation of the Public Improvements are in the
best interests of the City and the health, safety, morals and welfare of its
taxpayers, employees, business tenants, property owners and residents. In
addition,the enumerated goals of the Five Year Implementation Plan include:
(i)"[i]mprove public facilities and public infrastructure;"and(ii)"[i]mprove
inadequate drainage infrastructure." Furthermore,the improvement ofpublic
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Agency Res . No . 364
infrastructure in the Project Area which addresses substandard and inadequate
public improvements in the Project Area is a specific project listed in the Five
Year Implementation Plan as"Public Improvements." Pursuant to the Five
Year Implementation Plan,such project will address the following conditions
of blight identified in the Project Area; age, obsolescence and deterioration
and inadequate public improvements.
b. No other reasonable means of financing the Public Improvements are
available to the City. This determination is based,in part,on the fact that the
City itself is not in a position to finance the Public Improvements. The City is
having difficulty fully assuming the costs of anticipated and needed public
capital improvements. Without the assistance of tax increment funding from
the Proj ect Area,capital improvements in other parts of the City would have to _
be deferred or eliminated in order to fund the Public Improvements. Given the
constraints on financing sources which are under the direction of the City, all
anticipated and needed public capital improvements cannot be completed using
only City funds. It is clear that there must be a combination of tax increment
and non-tax increment funding.
c. The payment of funds by the Agency for the costs related to the Public
Improvements will assist in the elimination of one or more blighting
conditions within the Project Area and is consistent with the Agency's Five-
Year Implementation Plan for the Project Area. This determination is based,
in part, on the information contained in paragraph a., above.
3. The Agency hereby approves the Agreement in substantially the form presented to
the Agency. The Agency Executive Director is hereby authorized to execute the
Agreement on behalf of the Agency,together with such non-substantive changes and
amendments as may be approved by the Agency Executive Director and Agency
Counsel. Without the requirement of any further approval of the Agency,the Agency
Executive Director or designee is authorized to take any action and execute any and
all documents and agreements necessary to implement the Agreement.
4. This Resolution shall take effect immediately upon its adoption.
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Agency Re . No . 364
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach
at a regular meeting held thereof on the 16 t h day of October , 2006.
Chair
REVIEWED AND APPROVED: APPROVED AS TO FORM:
Executive irector eneral Counsel A V I N
KANE, BALLMER&BERKMAN
Agency pecial Counsel
MTIATED AND APPROVED:
—i4�v
Director oftconomic Development/
Deputy Executive Director
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Res. No. 364
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, JOAN FLYNN, Clerk of the Redevelopment Agency of the
City of Huntington Beach, California, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Redevelopment Agency of
the City of Huntington Beach at a regular meeting of said Redevelopment
Agency held on the 16th day of October, 2006 and that it was so adopted
by the following vote:
AYES: Bohr, Green, Coerper, Sullivan, Hansen
NOES: Hardy, Cook
ABSENT: None
ABSTAIN: None
Cler f the Redevelopment ency
of the City of Huntington Beach, CA