HomeMy WebLinkAboutCity Council - 2012-70 RESOLUTION NO. 2012-70
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 AND
APPROVING AND CONSENTING TO THE TRANSFER BACK TO THE CITY OF THE
REAL PROPERTY AS MAY BE DIRECTED BY THE OVERSIGHT BOARD TO 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 Huntington Beach, California, APN Nos. 024-147-01, 024-153-
21, and 142-073-03 (collectively, the "Agency Properties"); and
Pursuant to Resolution No. 2011-17, the City executed certificates of acceptance
("Certificates of Acceptance") for the Agency Deeds designed to transfer ownership of the
Agency Properties from the Agency to the City ("Agency Deeds"); and
On or about March 10, 2011, the Agency Deeds, along with the Certificates of
Acceptance, were recorded in the official records of the County of Orange; and
Neither the Cooperation Agreements nor the purported transfer of the Agency Properties
(or any of the related documents and actions) were challenged within the applicable statute of
limitations; and
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Subsequent to the date of transfer of the Agency Properties to the City, the City entered
into that certain Amended January 27, 2011 pertaining to APN No. 024-147-01 and that certain
January 27, 2011 pertaining to APN NO. 142-073-03 (which agreements may be referred to
herein collectively, as the "Governmental Use Leases"); 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
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
Under AB 26, each successor agency shall have an oversight board with fiduciary
responsibilities to holders of enforceable obligations and the taxing entities that benefit from
distributions of property taxes and other revenues pursuant to California Health and Safety Code
Section 34188; and
The oversight board has been established for Successor Agency to the Redevelopment
Agency of the City of Huntington Beach ("Successor Agency") (which oversight board shall
hereinafter be referred to as the "Oversight Board") and all seven (7) members have been
appointed to the Oversight Board pursuant to California Health and Safety Code Section 34179;
and
California Health and Safety Code Section 34181(a) provides, in pertinent part, that the
Oversight Board shall direct the Successor Agency to transfer ownership to the appropriate
public jurisdiction of all assets and property constructed and used for governmental purposes;
and
The Agency Properties were constructed and are used for governmental purposes;
The City is the appropriate public jurisdiction for ownership of the Agency Properties as
authorized pursuant to California Health and Safety Code Section 34181(a); and
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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 Properties 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
Properties is therefore categorized as Section 34179.5(c)(1) Assets; and
The City does not acknowledge that the purported transfer of the Agency Properties 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
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 Properties and return the applicable assets to the
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 Properties 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 Properties by the
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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 Properties
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 Properties 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 Properties 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
Deeds(s) or other appropriate instrument in order to reflect and confirm ownership of the Agency
Properties by the Successor Agency, including the execution of Certificates of Acceptance
therefor by the Successor Agency, and the processing of documentation to transfer to the
Successor Agency the Governmental Use Leases.
3. The City Council hereby approves and consents to the transfer of ownership of
any or all of the Agency Properties, together with the transfer of the applicable Governmental
Use Leases, from the Successor Agency to the City as the appropriate public agency, as may be
directed by the Oversight Board.
4. 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.
5. 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
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this Resolution and, therefore, reserves all such rights of the Successor Agency and the City
under law and/or in equity.
6. 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
REVIEttl
D APPROVED: INITIATED AND APPROVED:
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c5z;�
Cit/M4ager Director of Economic Development
PROVED AS TO FORM:
7 1 ' '
C ty Attorn 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
CitLherk and ex-officio erk of the
City Council of the City of
Huntington Beach, California