HomeMy WebLinkAboutOversight Board - 2012-04 RESOLUTION 2012-04
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH CONSENTING TO
AND APPROVING THE TERMINATION OF AN OWNER PARTICIPATION AGREEMENT
AMONG THE CITY, THE FORMER REDEVELOPMENT AGENCY AND MAKALLON
ATLANTA HUNTINGTON BEACH, LLC
WHEREAS, on December 29, 2011, the California Supreme Court delivered its decision in
California Redevelopment Association v. Matosantos, finding ABxI 26 (the "Dissolution Act") largely
constitutional; and
Under the Dissolution Act and the California Supreme Court's decision in California
Redevelopment Association v. Matosantos, all California redevelopment agencies, including the
Redevelopment Agency of the City of Huntington Beach (the "Former Agency"), were dissolved on
February 1, 2012; and
The City Council adopted a resolution accepting for the City the role of Successor Agency to the
Former Agency(the"Successor Agency"); and
The Dissolution Act was amended when the Governor signed Assembly Bill 1484 ("AB 1484")
on June 27, 2012; and
Under the Dissolution Act, 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 Section 34188; and
The oversight board has been established for the Successor Agency (hereinafter 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. The duties and responsibilities of the Oversight
Board are set forth in Health and Safety Code Sections 34179 through 34181 of AB 26 as amended by
AB 1484; and
The Former Agency, the City, and Makallon Atlanta Huntington Beach, LLC., a Delaware
limited liability company ("Makar"), entered into that certain Owner Participation Agreement executed
and delivered pursuant to Agency Resolution No. 364 and City Resolution No. 2006-67 approved and
adopted at the October 16, 2006 City Council meeting, as supplemented by letter dated February 1, 2008
and that certain Implementation Agreement entered into as of December 15, 2008 (collectively, the
`OPA"); and
Makar defaulted on a promissory note which was secured by a deed of trust recorded against the
property which was the subject of the OPA ("Property"). The holder of the promissory note foreclosed
on the deed of trust and became the new owner of the Property; and
The OPA has been terminated and is no longer in force and effect due to the fact that the OPA
was never implemented by Makar, due to a material incurable default under the OPA (an assignment
without the City and Former Agency's approval), and by the foreclosure of the deed of trust. Assuming
1
12-3440/82897
Oversight Board Resolution No. 2012-04
ar-;uendo that the OPA was implemented, was not automatically terminated due to a material incurable
default under the OPA , did survive the foreclosure of the deed of trust, and is in force and effect, as a
precautionary measure, the current owner of the Property, 21002 HB, LLC, a Delaware limited liability
company("New Owner"), the City and the Successor Agency (as the successor-in-interest to the Former
Agency under the OPA) all agree to terminate the OPA. The City and New Owner have negotiated a
Development Agreement pertaining to the Property. The Development Agreement terms provide that
the OPA has been terminated and is no.longer in force and effect; and
Health and Safety Code Section 34171(d)(1)(E) provides that nothing in the Dissolution Act
prohibits the Successor Agency, with the approval or at the direction of the Oversight Board, from
terminating any existing agreements or contracts; and
All legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE,the Oversight Board of the Successor Agency to the Redevelopment
Agency of the City of Huntington Beach does hereby resolve as follows:
I. The Oversight Board hereby finds and determines that the foregoing recitals are true and
correct.
2. Assuming arguendo the OPA is still in effect, the Oversight Board hereby consents to
and approves the termination of the OPA.
3. Without the requirement of any further approval of the Oversight Board, the Executive
Director of the Successor Agency or designee is authorized and directed to take any
action and execute any and all documents and agreements necessary to implement and
effectuate the actions approved by and the purposes of this Resolution, including,
without limitation, executing any and all documents on behalf of the Successor Agency.
PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a special meeting thereof held on the
23rd day of August 20 12.
Chairperson
RE ND APPROVED: INYFMED AND APPROVED:
E iv Director Deputy Executive Director
APPROVED AS TO FORM:
Bo rd Co nseh U
1)
Oversight Board
Res. No. 2012-04
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, JOAN FLYNN, Secretary of the Huntington Beach Oversight Board of
the Successor Agency of the Former City of Huntington Beach Redevelopment Agency,
Huntington Beach, California DO HEREBY CERTIFY that the foregoing resolution was
duly adopted by the Huntington Beach Oversight Board of the Successor Agency of the
Former City of Huntington Beach Huntington Beach Redevelopment Agency at a
meeting held on August 23, 2012 and that it was so adopted by the following vote:
AYES: Board Members: Hansen, Carchio, Bone, A. Dunn, Fritzal
NOES: Board Members: None
ABSENT: Board Members: L. Dunn, Delgado
ABSTAIN: Board Members: None
/-
Sec&fary of the Huntington each
Oversight Board of the Successor
Agency of the Former City of
Huntington Beach Redevelopment
Agency Huntington Beach, California