HomeMy WebLinkAboutCity Council - 2012-98 RESOLUTION NO. 2012-98
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"), duty created
pursuant to the California Community Redevelopment Law (Part I (commencing with Section
33000)of Division 24 of the California Health and Safety Code) ("CRL"); and
WHEREAS, the Agency was responsible for the administration of redevelopment
activities within the City; and
WHEREAS, the Agency and Mayer Financial, L.P. entered into that certain Amended
and Restated Disposition and Development Agreement dated as of September 14, 1998 (the
"Original Agreement"), as amended by that certain First Implementation Agreement to Amended
and Restated Disposition and Development Agreement dated as of May 15, 2000 (the "First
Implementation Agreement"), that certain Second Implementation Agreement to Amended and
Restated Disposition and Development Agreement dated as of February S, 2001 (the "Second
Implementation Agreement"), that certain Third Implementation Agreement to Amended and
Restated Disposition and Development Agreement dated as of October 20, 2008 (the "Third
Implementation Agreement"), that certain Fourth Implementation Agreement to Amended and
Restated Disposition and Development Agreement dated as of October 18, 2010 (the "Fourth
Implementation Agreement) and that certain Fifth Implementation Agreement to Amended and
Restated Disposition and Development Agreement dated as of May 16, 2010 (the Original
Agreement, the First Implementation Agreement, the Second Implementation Agreement, the
Third Implementation Agreement, the Fourth Implementation Agreement and the Fifth
Implementation Agreement may hereinafter be referred to together as the "DDA"}. The DDA
provides for the phased disposition of the "Site" described therein and the development and
operation by Developer on the Site of certain hotel, residential, and related improvements, and
WHEREAS, 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
WHEREAS, 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
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WHEREAS, 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. 024-251-01,
024-252-01, and 024-252-02 (collectively, the "Agency Property"). The Agency Property is the
same as the"Site' under the DDA; and
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
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WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, the City does not acknowledge that commencing February 1, 2012,
arrangements between the redevelopment agency and the city that created it are invalid; and
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
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WHEREAS; 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
WHEREAS, 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
WHEREAS, all of the prerequisites with respect to the approval of this Resolution have
been met.
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of
Huntington Beach, 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
by the Successor Agency, including the execution of Certificate of Acceptance therefore by the
Successor Agency, and the processing of documentation to transfer to/retention by the Successor
Agency or the City of any and all lease, rental or other documents pertaining to the Agency
Property.
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
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this Resolution and, therefore; reserves all such rights of the Successor Agency,andz the City
under law and/or in equity.
5. This Resolution shall take effect upon the date of its adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Successor Agency
to the Redevelopment Agency of the City of Huntington Beach, California, held on the 19th day of
December, 2012 by the following vote, to wit:
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Mayor
RE AND APPROVED: Il�ITIA�ED AND APPROVED:
ZAND APPROVED:
Ci ager Director of Economic Development
PRO TO FORM-
City A496ey `2_ -�• 1-2-
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Res. No. 2012-98
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 Special meeting thereof held on December 19, 2012 by the following vote:
AYES: Sullivan, Hardy, Harper, Boardman ,Carchio, Katapodis
NOES: None
ABSENT: Shaw
ABSTAIN: None
i Clerk and ex-offici Clerk of the
City Council of the City of
Huntington Beach, California