HomeMy WebLinkAboutSuccessor Agency - 2012-09 Successor Agency Resolution No. 2012-09
SUCCESSOR AGENCY RESOLUTION NO. 2012-09
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE PROCESSING OF
DOCUMENTATION REFLECTING AND CONFIRMING ITS OWNERSHIP OF REAL
PROPERTY
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
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 5, 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 x1 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, 20121, ...
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, 20127
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 Successor Agency to the Redevelopment Agency of the City of
Huntington Beach("Successor Agency") 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 Successor Agency 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 Successor Agency does not acknowledge that commencing February 1,
2012, arrangements between the redevelopment agency and the city that created it are invalid;
and
WHEREAS, the Successor Agency 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; and
WHEREAS, the Successor Agency 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 Successor
Agency 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 Successor Agency'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 HER-EBY RESOLVED, by the Governing Board of the
Successor Agency to the Redevelopment Agency of the City of Huntington Beach, as follows:
I. The above recitals are true and correct and are a substantive part of this
Resolution.
2. The Successor Agency 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 Executive Director, 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 Successor Agency.
4. The Successor Agency 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
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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 Governing Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the
5._9t:h day of_ December _a.. . ,_., , 2012.
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Chairman
REV APPROVED: INITIATED AND APPROVED:
E e v Director Deputy Executive Director
APPRO D AS TO F
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Successor Agency
Res. No. 2012-09
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I; JOAN L. FLYNN the Clerk of the Successor Agency to the former
City of Huntington Beach Redevelopment Agency, Huntington Beach, California,
DO HEREBY CERTIFY that the foregoing resolution was duly adopted by The
Successor Agency to the Redevelopment Agency of the City of Huntington Beach
at a special meeting held on December 19, 2012 and that is was so adopted by
the following vote:
AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Katapodis
NOES: None
ABSENT: Shaw
ABSTAIN: None
Cleryof The Successor A§Ancy to
the Redevelopment Agency of the
City of Huntington Beach, California