HomeMy WebLinkAboutOversight Board - 2013-02 RESOLUTION NO. 2013-02
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DIRECTING
THE TRANSFER OF OWNERSHIP OF REAL PROPERTY IN ACCORDANCE WITH
HEALTH AND SAFETY CODE SECTION 34181(a) [APN NO. 024-153-21]
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 No. 024-153-21
("Governmental Use Property"). The Governmental Use Property is an undevelopable remnant
parcel in use as a paved walkway(alley) from Main St. to 5th St.; 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
Governmental Use 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 Governmental Use
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
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
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
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Controller has purported to order that ownership of certain assets be vested in successor
agencies, the Governmental Use 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
Governmental Use Property was therefore categorized as Section 34179.5(c)(1) Assets; and
The City and Successor Agency do not acknowledge that the purported transfer of the
Governmental Use Property by the Agency to the City in 2011 was not in furtherance of the
CRL; and
The City and Successor Agency do 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 and Successor Agency do not acknowledge that commencing February 1, 2012,
arrangements between the redevelopment agency and the city that created it are invalid; and
The City and Successor Agency do not acknowledge the effectiveness of the California
State Controller's order to reverse the transfer of the Governmental Use Property and return the
applicable assets to the Successor Agency; and
The City and Successor Agency have limited financial resources and desire 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 Governmental Use Property be vested in the Successor
Agency; and
Therefore, in order to avoid the costs of litigation and other costs, the City and Successor
Agency took 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
Governmental Use Property by the Successor Agency pursuant to City Resolution No. 2012-70
and Successor Agency Resolution No. 2012-06, without acknowledging the effectiveness of AB
26, AB 1484 and/or such order and duties, expressly disclaiming the same. A Quitclaim Deed
was recorded on October 17, 2012 whereby the City quitclaimed to the Successor Agency the
City's right, title and interest in the Governmental Use Property; 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
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The Governmental Use Property was constructed and is used for governmental purposes
and has no monetary value due to it being an undevelopable remnant parcel; and
The City is the appropriate public jurisdiction for ownership of the Governmental Use
Property as authorized pursuant to California Health and Safety Code Section 34181(a); and
The Oversight Board desires to direct the Successor Agency to transfer ownership of the
Governmental Use Property to the City as the appropriate public agency; and
Per Section 15301 of the State CEQA Guidelines, the transfer of the Governmental Use
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
All of the prerequisites with respect to the approval of this Resolution have been met.
NOW, THEREFORE, the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows:
1. The Oversight Board hereby finds and determines that the foregoing recitals are
true and correct.
2. The Oversight Board has received and heard all oral and written objections to the
transfer of ownership of the Governmental Use Property and all such oral and written objections
are hereby overruled.
3. The Oversight Board hereby finds the City is the appropriate public jurisdiction to
assume ownership of the Governmental Use Property.
4. The Oversight Board hereby approves of and directs the Successor Agency to
transfer ownership of the Governmental Use Property to the City as the appropriate public
agency.
5. The Oversight Board hereby authorizes and directs the Executive Director of the
Successor Agency, or his or her designee, and the City Manager, or his or her designee, to take
all actions and sign any and all documents necessary to implement and effectuate the actions
approved by this Resolution including, without limitation, executing documents on behalf of the
Successor Agency and City (including, without limitation, grant deeds and quitclaim deeds), and
administering the Successor Agency's and City's obligations, responsibilities and duties to be
performed pursuant to this Resolution.
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6. The Oversight Board does not intend, by adoption of this Resolution, to waive
any constitutional, legal and/or equitable rights of the Oversight Board, 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
Oversight Board, the Successor Agency and the City under law and/or in equity.
PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the
day of 0 ax&&he44 , 20/3
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Chairman
REVI E AND APPROVED: 7ED N PPROVED:
Ex• u ' Director Deputy Executive Director
APPROVED AS TO FORM:
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SigAgency Counsel
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STATE OF CALIFORNIA )
COUNTY OF ORANGE )
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 Redevelopment Agency at a meeting held on January 8,2013 and that it was so adopted
by the following vote:
AYES: Board Members: Boardman, Carchio, Bone, Fritzal
NOES: Board Members: None
ABSENT: Board Members: A. Dunn, L. Dunn, Delgado
ABSTAIN: Board Members: None
Sec ary of the Huntingt Beach Oversight
Board of the Successor Agency of the Fortner
City of Huntington Beach Redevelopment
Agency Huntington Beach, California