HomeMy WebLinkAboutOversight Board - 2015-05 RESOLUTION NO. 2015-05
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH APPROVING THE AMENDED LONG RANGE
PROPERTY MANAGEMENT PLAN PREPARED PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34191.5
WHEREAS, the Redevelopment Agency of the City of Huntington Beach
("Redevelopment 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)
("Redevelopment Law"); and
Assembly Bill No. XI 26 (2011-2012 1" Ex. Sess.) ("AB 26") was signed by the
Governor of California on June 28, 2011, making certain changes to the Redevelopment Law and
to the California Health and Safety Code ("H&S Code"), including adding Part 1.8 (commencing
with Section 34161) ("Part 1.8") and Part 1.85 (commencing with Section 34170) ("Part 1.85")
to Division 24 of the H&S Code; and
Pursuant to AB 26, as modified by the California Supreme Court on December 29, 2011
by its decision in California Redevelopment Association v. Matosantos, all California
redevelopment agencies, including the Redevelopment Agency, were dissolved on February 1,
2012, and successor agencies were designated and vested with the responsibility of paying,
performing and enforcing the enforceable obligations of the former redevelopment agencies and
expeditiously winding down the business and fiscal affairs of the former redevelopment
agencies; and
The City Council of the City elected for the City to serve as the successor agency to the
Redevelopment Agency upon the dissolution of the Redevelopment Agency under AB 26
("Successor Agency"); and
On June 27, 2012, the Legislature passed and the Governor signed Assembly Bill No.
1484 ("AB 1484", Chapter 26, Statutes 2012). AB 1484 imposes additional statutory provisions
relating to the activities and obligations of successor agencies and to the wind down process of
former redevelopment agencies, including the preparation of a Long Range Property
Management Plan; and
AB 26 and AB 1484, as further amended, are collectively referred to herein as the
"Dissolution Act"; and
H&S Code Section 34179 of the Dissolution Act establishes a seven (7) member local
entity with respect to each successor agency and such entity is titled the "oversight board." The
oversight board has been established for the Successor Agency (hereinafter referred to as the
"Oversight Board"); and
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Pursuant to H&S Code Section 34191.5(a) of the Dissolution Act, upon the issuance of
the Finding of Completion to the Successor Agency, a Community Redevelopment Property
Trust Fund ("Trust") will be established to serve as the repository of certain real properties of the
former Redevelopment Agency that are identified in the Due Diligence Reviews by H&S Code
Section 34179.5(c)(5)(C) of the Dissolution Act; and
Pursuant to H&S Code Section 34191.5(b) of the Dissolution Act, once the California
Department of Finance ("DOF") issues a Finding of Completion to the Successor Agency, the
Successor Agency shall prepare a LRPMP that addresses the disposition and use of certain real
properties of the former Redevelopment Agency. The LRPMP shall be submitted to the
Oversight Board and the DOF for approval no later than 6 months following the issuance of the
Finding of Completion to the Successor Agency; and
Pursuant to H&S Code Section 34191.4(a) of the Dissolution Act, upon the approval of
the LRPMP by the DOF, all real property and interests in real property identified in the DDRs by
H&S Code Section 34179.5(c)(5)(C) of the Dissolution Act shall be transferred to the Trust,
unless such a property is subject to the requirements of any existing enforceable obligation; and
H&S Code Section 34191.5(c) of the Dissolution Act requires that the LRPMP (1)
include an inventory of all properties in the Trust, which inventory shall consist of specific
information relating to each such property including, without limitation, the date of and purpose
for acquisition, value of property, applicable zoning, any property revenues and contractual
requirements for disposition of same, history of environmental issues and any related studies and
remediation efforts, potential for transit-oriented development and advancement of planning
objectives of the Successor Agency, and history of previous development proposals and activity;
and (2) address the use or disposition of all properties in the Trust, including (i) the retention of
such property for governmental use pursuant to H&S Code Section 34181(a) of the Dissolution
Act, (ii) the retention of such property for future development, (iii) the sale of such property, or
(iv) the use of such property to fulfill an enforceable obligation; and
On May 13, 2014, the Successor Agency received its Finding of Completion; and
The Successor Agency prepared a proposed LRPMP ("LRPMP") for consideration by the
Oversight Board and the DOF. The LRPMP includes 13 parcels comprising seven properties,
namely:
Property Name Parcel Number on Inventory
Surf Museum 1
Downtown Alley 2
Skate Park 3
Westminster Parcel 4
Waterfront Hyatt Regency Hotel 5
Waterfront Hilton Hotel/Parcel C 6,7
Edinger Hotel 8, 9, 10, 11, 12, 13; and
On November 3, 2014, the Successor Agency approved the proposed LRPMP; and
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On November 5, 2014, the Oversight Board reviewed and approved the LRPMP which
was then sent to DOF on November 7, 2014. On March 3, 2015, the Successor Agency received
correspondence from DOF regarding modifications to the LRPMP; and
The Successor Agency prepared a proposed Amended LRPMP to address the
modifications requested by DOF ("Amended LRPMP") for consideration by the Oversight Board
and the DOF. The Amended LRPMP includes the same 13 parcels comprising seven properties
as contained in the LRPMP and includes non-substantive changes requested by DOF; and
The proposed Amended LRPMP is attached to the Staff Report prepared for this Agenda
Item, and is presented to the Oversight Board for review and approval; and
For each of the properties, the Amended LRPMP includes all of the information required
by H&S Code Section 34191.5(c) of the Dissolution Act and their respective use and disposition
are in accordance with the Dissolution Act; and
The Edinger Hotel property is proposed to be sold to Miramar GP, LP, a California
limited partnership ("Miramar"), a private third party developer, pursuant to a proposed Purchase
and Sale Agreement and Joint Escrow Instructions by and among the Successor Agency,
Miramar, and the City of Huntington Beach ("Agreement"); and
In accordance with the appraised value of the Edinger Hotel property, as supported by an
appraisal dated January 9, 2012, attached to the Amended LRPMP, the "Purchase Price" for the
Edinger Hotel property is $3,100,000; and
The anticipated sale proceeds from the sale of the Edinger Hotel property to Miramar
pursuant to the proposed Agreement in the amount of$3,100,000 will be remitted after the close
of escrow to the Orange County Auditor-Controller's Office for distribution to the taxing entities
in accordance with H&S Code Section 34191.5(c)(2)(B) of the Dissolution Act; and
The proposed Agreement will be considered for approval by the Oversight Board at the
same meeting as the Oversight Board's consideration of the proposed Amended LRPMP. The
proposed Agreement will likewise be submitted to the DOF for review concurrently with the
proposed Amended LRPMP if approved by the Oversight Board; and
Pursuant to H&S Code Section 34191.3 of the Dissolution Act, once the Amended
LRPMP is approved by the DOF, the Amended LRPMP shall govern, and supersede all other
provisions of the Dissolution Act relating to, the disposition and use of the properties; and
The activity proposed for approval by this Resolution has been reviewed with respect to
applicability of the California Environmental Quality Act ("CEQA"), the State CEQA
Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the
"Guidelines"), and the City's environmental guidelines; and
The activity proposed for approval by this Resolution is not a "project" for purposes of
CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an
organizational or administrative activity that will not result in a direct or indirect physical change
in the environment, per Section 15378(b)(5) of the Guidelines. In this regard, the projects
associated with the properties identified in the Amended LRPMP, along with their respective
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contractual agreements, have been reviewed and analyzed pursuant to CEQA and their required
environmental documents have been prepared, circulated and approved/certified by the
appropriate lead agency; 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 determines that the foregoing recitals are true and
correct.
2. The Oversight Board hereby approves the Amended Long Range Property
Management Plan ("Amended LRPMP"), substantially in the form attached to the Staff Report
prepared for this Agenda Item.
3. The Oversight Board hereby authorizes and directs the Executive Director, or
designee, of the Successor Agency to remit to the Orange County Auditor-Controller's Office for
distribution to the taxing entities in accordance with H&S Code Section 34191.5(c)(2)(B) of the
Dissolution Act the proceeds of the Purchase Price that are received from the sale of the Edinger
Hotel property pursuant to the proposed Agreement.
4. The Oversight Board hereby authorizes and directs the Executive Director, or
designee, of the Successor Agency to: (i) submit the Amended LRPMP, as approved by the
Oversight Board, to the California Department of Finance ("DOF") electronically in PDF format
and to the Orange County Auditor-Controller; (ii) post a copy of the Amended LRPMP, as
approved by the Oversight Board, on the Successor Agency's internet website; (iii) revise the
Amended LRPMP and make such changes and amendments as necessary, before official
submittal of the Amended LRPMP to the DOF, in order to complete the Amended LRPMP in the
manner provided by the DOF and to conform the Amended LRPMP to the form or format as
prescribed by the DOF; (iv) make non-substantive changes and amendments to the Amended
LRPMP deemed necessary and as approved by the Executive Director of the Successor Agency
and its legal counsel; and (v) take such other actions and execute such other documents as are
necessary to effectuate the intent of this Resolution on behalf of the Successor Agency and the
Oversight Board.
5. The staff of the Successor Agency is hereby authorized to execute and record
such documents and instruments and to do any and all other things which they may deem
necessary or advisable to effectuate this Resolution and any such actions previously taken are
hereby ratified, including, without limitation, execution of any deeds or certificates of
acceptance.
6. The Oversight Board determines that the activity approved by this Resolution is
not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378,
because this Resolution is an organizational or administrative activity that will not result in a
direct or indirect physical change in the environment, per Section 15378(b)(5) of the Guidelines.
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7. The adoption of this Resolution is not intended to and shall not constitute a waiver
of any constitutional, legal or equitable rights that the Successor Agency or Oversight Board may
have to challenge, through any administrative or judicial proceedings, the effectiveness and/or
legality of all or any portion of the Dissolution Act, any determinations rendered or actions or
omissions to act by any public agency or government entity or division in the implementation of
the Dissolution Act, and any and all related legal and factual issues, and the Successor Agency or
Oversight Board expressly reserves any and all rights, privileges, and defenses available under
law and equity.
8. If any provision of this Resolution or the application of any such provision to any
person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of this Resolution that can be given effect without the invalid provision or
application, and to this end the provisions of this Resolution are severable. The Oversight Board
declares that its Board would have adopted this Resolution irrespective of the invalidity of any
particular portion of this Resolution.
9. This Resolution shall take effect upon the date of its adoption.
PASSED AND ADOPTED by the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach at a meeting thereof held on the 5th day
of March, 2015.
airper n �'J
REVIEWED AND APPROVED: INITI D AN APPROVED:
e utive Director Deputy tive Director
APPROVED AS TO FORM:
Board 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 March 05,2015 and that it was so adopted
by the following vote:
AYES: Board Members: Delgado, L. Dunn, Fritzal, Hardy, Katapodis
NOES: Board Members: None
ABSENT: Board Members: A. Dunn, Bone
ABSTAIN: Board Members: None
n
Secret of the Huntington ch Oversight
Boa f the Successor Age of the Former
Cit f Huntington Beach Redevelopment
Agency, Huntington Beach, California