HomeMy WebLinkAboutCity Council - 2012-69 RESOLUTION NO. 2012-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH,
CALIFORNIA AUTHORIZING THE PROCESSING OF DOCUMENTATION REFLECTING
AND CONFIRMING OWNERSHIP OF REAL PROPERTY BY THE SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
WHEREAS, the former Redevelopment Agency of the City of Huntington Beach
("Agency") was a redevelopment agency in the City of Huntington Beach ("City"), duly created
pursuant to the California Community Redevelopment Law (Part 1 (commencing with Section
33000) of Division 24 of the California Health and Safety Code) ("CRL"); and
The Agency was responsible for the administration of redevelopment activities within the
City; and
Section 33220 of the CRL provides that certain public bodies may aid and cooperate in
the planning, undertaking, construction or operation of redevelopment projects; and
The City and the Agency entered into a number of Cooperation Agreements to continue
the effort to redevelop, revitalize and/or eliminate blight in the City to achieve the purposes and
goals of the CRL, to repay debt to the City and to provide for affordable housing, as appropriate
and as authorized by redevelopment law in effect at the time of approval of said agreements; and
Pursuant to such authority set forth in the CRL and other applicable law, on March 7,
2011, by Resolution No. 2011-17, the City approved and accepted the transfer of certain real
property located in the City of Westminster, California, APN No. 142-073-03 (the "Agency
Property"); and
Pursuant to Resolution No. 2011-17, the City executed a certificate of acceptance
("Certificate of Acceptance") for the Agency deed designed to transfer ownership of the Agency
Property from the Agency to the City ("Agency Deed"); and
On or about March 10, 2011, the Agency Deed, along with the Certificate of Acceptance,
was recorded in the official records of the County of Orange; and
Neither the Cooperation Agreements nor the purported transfer of the Agency Property
(or any of the related documents and actions) were challenged within the applicable statute of
limitations; and
AB xl 26 ("AB 26") was signed by the Governor of California on June 28, 2011, making
certain changes to the CRL and adding Part 1.8 and Part 1.85 to Division 24 of the California
Health and Safety Code; and
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AB 26 states, in part, that "[t]he Legislature hereby finds that a transfer of assets by a
redevelopment agency [after January 1, 2011] is deemed not to be in the furtherance of the
[CRL] and is thereby unauthorized;" and
AB 26 further states, in part, that "[c]ommencing [February 1, 2012], ... arrangements
between the city ... that created the redevelopment agency and the redevelopment agency are
invalid...;" and
AB 26 further states, in part, that "[a]ll ... properties [and] buildings ... of the former
redevelopment agency are transferred on [February 1, 2012], to the control of the successor
agency;" and
On or about April 20, 2012, the California State Controller issued correspondence stating,
in part, that "[i]f your city ... received any assets from a redevelopment agency after January 1,
2011, your city ... hereby is ordered to ... reverse the transfer and return the applicable assets to
the successor agency of the relevant redevelopment agency;" and
AB 1484 ("AB 1484") was signed by the Governor of California on June 27, 2012,
making changes to AB 26 and certain additional changes to the CRL; and
AB 1484, at Section 34179.5(c)(2) of Part 1.85 of the California Health and Safety Code,
categorizes certain assets as those "transferred after January 1, 2011 ... by the redevelopment
agency ... to the city ... that formed the redevelopment agency..." ("Section 34179.5(c)(2)
Assets"); and
AB 1484, at Section 34179.5(c)(1) of Part 1.85 of the California Health and Safety Code,
categorizes certain other assets as those "transferred from the former redevelopment agency to
the successor agency on or about February 1, 2012." ("Section 34179.5(c)(1)Assets"); and
Because (i) AB 26 states that a transfer of assets by a redevelopment agency after January
1, 2011 was "unauthorized", (ii) AB 26 states that commencing February 1, 2012, arrangements
between a redevelopment agency and the city that created it are "invalid" and (iii) the State
Controller has purported to order that ownership of certain assets be vested in successor
agencies, the Agency Property is therefore not categorized as Section 34179.5(c)(2)Assets; and
Because AB 26 states that all properties and buildings of the former redevelopment
agency are transferred on February 1, 2012 to the control of the successor agency, the Agency
Property is therefore categorized as Section 34179.5(c)(1)Assets; and
The City does not acknowledge that the purported transfer of the Agency Property by the
Agency to the City was not in furtherance of the CRL; and
The City does not acknowledge the effectiveness of the Legislature's purported deeming
not to be in furtherance of the CRL of the purported transfer of assets that was conducted in
accordance with the CRL at the time when made and was not challenged within the applicable
statute of limitations; and
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The City does not acknowledge that commencing. February 1, 2012, arrangements
between the redevelopment agency and the city that created it are invalid; and
The City does not acknowledge the effectiveness of the California State Controller's
order to reverse the transfer of the Agency Property and return the applicable assets to the
Successor Agency to the Redevelopment Agency of the City of Huntington Beach ("Successor
Agency"); and
The City has limited financial resources and desires not to initiate litigation at this time
with regard to AB 26, AB 1484 and/or the purported order by the California State Controller that
ownership of the Agency Property be vested in the Successor Agency; and
In order to avoid the costs of litigation and other costs, the City desires to take action in a
manner consistent with AB 26, AB 1484 and the California State Controller's purported order,
and in furtherance of the Successor Agency's duties under Section 34179.6(h)(1) and Section
34179.6(f), by processing documentation reflecting ownership of the Agency Property by the
Successor Agency, without acknowledging the effectiveness of AB 26, AB 1484 and/or such
order and duties, expressly disclaiming the same; and
The City's processing of documentation reflecting ownership of the Agency Property by
the Successor Agency is not intended to waive, and shall not constitute a waiver, by the
Successor Agency or the City of any constitutional, legal or equitable rights that the Successor
Agency or the City may have to challenge, through administrative or judicial proceedings, the
effectiveness and/or legality of all or any portion of AB 26 or AB 1484, any determinations
rendered or actions or omissions to act by any public agency or government entity or division in
the implementation of AB 26 and AB 1484, and any and all related legal and factual issues, and
the Successor Agency and the City expressly reserves any and all rights, privileges, and defenses
available under law and equity; and
Per Section 15301 of the State CEQA Guidelines, the transfer of the Agency Property is
exempt from environmental review under CEQA because the transfer will result in a
continuation of an existing facility involving no expansion of use and is therefore exempt from
environmental review, and any future development for the Agency Property will require separate
environmental review; and
All of the prerequisites with respect to the approval of this Resolution have been met.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
1. The above recitals are true and correct and are a substantive part of this
Resolution.
2. The City hereby authorizes the processing of documentation via quitclaim deed(s)
or other appropriate instrument in order to reflect and confirm ownership of the Agency Property
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by the Successor Agency, including the execution of Certificate of Acceptance therefor by the
Successor Agency.
3. The City Manager, or designee, is hereby authorized to take such actions and
execute such documents as are necessary to effectuate the intent of this Resolution on behalf of
the City.
4. The City Council does not intend, by adoption of this Resolution, to waive any
constitutional, legal and/or equitable rights of the Successor Agency or the City under law and/or
in equity by virtue of the adoption of this Resolution and actions approved and taken pursuant to
this Resolution and, therefore, reserves all such rights of the Successor Agency and the City
under law and/or in equity.
5. This Resolution shall take effect upon the date of its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 15th day of October , 2012.
Mayor
REVI ND APPROVED: IN A PROVED:
Ci ger Director of Economic Development
APPROVED AS TO FORM:
)m
C ty Atto y
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STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on October 15, 2012 by the following vote:
AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
City,lerk and ex-officio erk"of the
City Council of the City of
Huntington Beach, California