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HomeMy WebLinkAboutSuccessor Agency - 2017-13 RESOLUTION NO. 2017-13 A RESOLUTION OF THE SUCCESSOR AGENCY TO THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FINDING, AND RECOMMENDING TO ITS OVERSIGHT BOARD THAT THE OVERSIGHT BOARD FINDS, THAT THE LOAN MADE BY THE CITY OF HUNTINGTON BEACH TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH REGARDING THE EMERALD COVE PROPERTY TRANSFER WAS FOR LEGITIMATE REDEVELOPMENT PURPOSES, AND APPROVING THE LOAN AS AN ENFORCEABLE OBLIGATION AND THE SCHEDULE FOR REPAYMENT OF SAID LOAN BY THE SUCCESSOR AGENCY TO THE CITY OF HUNTINGTON BEACH, IN ACCORDANCE WITH HEALTH AND SAFETY CODE SECTION 34191.4(b) 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 1st 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 H&S Code 34179 of AB 26 establishes a seven (7) member local entity with respect to each successor agency with fiduciary responsibilities to holders of enforceable obligations and taxing entities that benefit from distributions of property taxes, and such entity is titled the "oversight board." The oversight board has been established for the Successor Agency SA Reso—City Loan Agmt-Emerald Cove Property Transfer Jan.5 2017 Page 1 of 6 RESOLUTION NO. 2017-13 (hereinafter referred to as the "Oversight Board") and all seven (7) members have been appointed to the Oversight Board pursuant to H&S Code Section 34179. The duties and responsibilities of the Oversight Board are primarily set forth in H&S Code Sections 34179 through 34181 of AB 26; and As part of the FY 2012-2013 State budget package, on June 27, 2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 ("AB 1484"), which amended certain provisions of AB 26. AB 26 and AB 1484, as further amended, are collectively referred to herein as the "Dissolution Act"; and On May 13, 2014, the Department of Finance issued a Finding of Completion to the Successor Agency pursuant to H&S Code Section 34179.7 of the Dissolution Act; and Pursuant to the Dissolution Act, "ROPS" means a "Recognized Obligation Payment Schedule", as set forth in the Dissolution Act; and Pursuant to H&S Code Section 34191.4(b)(1) of the Dissolution Act, after the Successor Agency receives its Finding of Completion and upon application by the Successor Agency and approval of the Oversight Board, loan agreements entered into between the former Redevelopment Agency and the City shall be deemed to be enforceable obligations provided that the Oversight Board makes a finding that the loan was for legitimate redevelopment purposes. Upon the Oversight Board's approval and making of the required finding, the loan is deemed an enforceable obligation and may be listed on a ROPS for repayment, subject to the repayment terms and conditions specified in H&S Code Section 34191.4(b)(2); and The City Council of the City adopted Ordinance Nos. 2576, 2577, 2578, 2582, and 2743 approving and adopting the Redevelopment Plan for the Yorktown-Lake Redevelopment Project, the Redevelopment Plan for the Talbert-Beach Redevelopment Project, the Redevelopment Plan for the Main-Pier Redevelopment Project, the Redevelopment Plan for the Oakview Redevelopment Project, and the Redevelopment Plan for the Huntington Center Commercial District Redevelopment Project, respectively; and The former Redevelopment Agency and the City entered into a Cooperative Agreement, dated June 20, 1983 ("1983 Cooperative Agreement"), by which the City agreed to provide to the former Redevelopment Agency certain assistance and to otherwise cooperate with the former Redevelopment Agency in carrying out redevelopment projects; and Pursuant to the Cooperative Agreement, the former Redevelopment Agency and the City entered into various Operative Agreements for the Yorktown-Lake, Talbert-Beach, Main-Pier, Oakview and Huntington Center Redevelopment Projects (collectively, the "Constituent Projects"), by which the City provided the former Redevelopment Agency with both administrative and/or technical services, constructed required public improvements and facilities as appropriate and necessary, and provided funds to carry out the Constituent Projects; and SA Reso—City Loan Agmt-Emerald Cove Property Transfer Jan.5 2017 Page 2 of 6 RESOLUTION NO. 2017-13 The Operative Agreements also identified the terms under which the former Redevelopment Agency would reimburse the City for the associated costs of such services, improvements, facilities and funds. The Operative Agreements were amended from time to time; and The City Council adopted Ordinance No. 3343 on December 16, 1996 amending and merging the Constituent Projects into the Redevelopment Plan for the Huntington Beach Redevelopment Project ("HBRP"); and The City Council adopted Ordinance No. 3561 on June 17, 2002, approving and adopting the Redevelopment Plan for the Southeast Coastal Redevelopment Project ("SCRP"); and The former Redevelopment Agency and the City entered into a Cooperation Agreement, dated September 2, 2003 ("SCRP Cooperation Agreement") regarding redevelopment projects and capital improvements to be carried out in the SCRP Area (the 1983 Cooperative Agreement, the SCRP Cooperation Agreement and the various Operative Agreements (as amended) may collectively be referred to herein as the "Cooperative Agreements"); and Pursuant to the Cooperative Agreements, in 1984, the City of Huntington Beach's Park& Acquisition Fund advanced $1,740,834 ("City Loan") to the former Redevelopment Agency to acquire certain real property in the City upon which the Emerald Cove Senior Housing Project is built ("Emerald Cove Property"). The City Loan is evidenced by a Promissory Note between the City and the former Redevelopment Agency. In that same year, the former Redevelopment Agency sold $4.6 million of Certificates of Participation ("COPS") to finance the construction of the Emerald Cove Senior Housing Project, which COPS were defeased in 2000 with the issuance of COPS by the City's Public Financing Authority. As a result of the defeasance, the City retained possession of Emerald Cove Property. The defeasance of the former Redevelopment Agency's COPS did not discharge the former Redevelopment Agency's obligation to repay the City for the acquisition of the Emerald Cove Property. Subsequent to the bond defeasance, the City transferred fee title to the former Redevelopment Agency of the Emerald Cove Property. The transfer of and use by the former Redevelopment Agency of the Emerald Cove Property was for a lawful purpose; and The Successor Agency has recalculated the current outstanding balance of the City Loan in accordance with H&S Code Section 34191.4(b)(3), which provides that any interest on the remaining principal amount of the City Loan shall be recalculated from the date of origination of the City Loan, at a simple interest rate of 3 percent (3%). The year of origination of the City Loan was 2009. The current outstanding balance of the City Loan (recalculated as of September 30, 2016 in accordance with H&S Code Section 34191.4(b)(3)) is $5,676,433; and The Successor Agency desires to find, and to recommend to its Oversight Board that the Oversight Board finds, pursuant to H&S Code Section 34191.4(b)(1), that the City Loan was SA Reso—City Loan Agmt-Emerald Cove Property Transfer Jan.5 2017 Page 3 of 6 RESOLUTION NO. 2017-13 made by the City to the former Redevelopment Agency for legitimate redevelopment purposes; and The Successor Agency further desires to approve the City Loan as an enforceable obligation of the Successor Agency and to approve the schedule for repayment of the City Loan as an enforceable obligation listed on a ROPS beginning with ROPS 17-18 consistent and in accordance with the maximum repayment amounts specified in H&S Code Section 34191.4(b), with the remaining balance of the City Loan to be paid on successive ROPS in the maximum repayment amounts consistent and in accordance with H&S Code Section 34191.4(b) until the City Loan is repaid in full, subject to other applicable loan repayment terms and conditions set forth in H&S Code Section 34191.4(b); 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, Section 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 the activity proposed by 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; and All of the prerequisites with respect to the approval of this Resolution have been met. NOW, THEREFORE, the Successor Agency to the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. , The Successor Agency hereby finds and determines that the foregoing recitals are true and correct. 2. The Successor Agency hereby finds, and recommends to its Oversight Board that the Oversight Board finds, pursuant to H&S Code Section 34191.4(b)(1), that the City Loan described in the Recitals above was made by the City to the former Redevelopment Agency for legitimate redevelopment purposes. 3. The Successor Agency hereby finds and approves the City Loan as an enforceable obligation of the Successor Agency and approves the repayment of the City Loan as an enforceable obligation listed on a ROPS beginning with ROPS 17-18 consistent and in accordance with the maximum repayment amounts specified in H&S Code Section 34191.4(b), with the remaining balance of the City Loan to be paid on successive ROPS in the maximum repayment amounts consistent and in accordance with H&S Code Section 34191.4(b) until the City Loan is repaid in full, subject to other applicable loan repayment terms and conditions set forth in H&S Code Section 34191.4(b). SA Reso—City Loan Agmt-Emerald Cove Property Transfer Jan.5 2017 Page 4 of 6 RESOLUTION NO. 2017-13 4. The Executive Director, or designee, of the Successor Agency is hereby authorized and directed (i) to submit the Successor Agency's recommendation to its Oversight Board that the Oversight Board find that the City Loan described in the Recitals above was made by the City to the former Redevelopment Agency for legitimate redevelopment purposes; (ii) to include the repayment of the City Loan on ROPS 17-18 and on successive ROPS until repaid in full consistent and in accordance with H&S Code Section 34191.4(b), and to comply with all other applicable loan repayment terms and conditions set forth in H&S Code Section 34191.4(b); (iii) provide such notifications as required by the Dissolution Act; and (iv) take such other actions and execute such other documents as are necessary or desirable to effectuate the intent of this Resolution on behalf of the Successor Agency. 5. 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 Successor Agency declares that its board would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. 6. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any constitutional, legal or equitable rights that the Successor Agency 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 expressly reserves any and all rights, privileges, and defenses available under law and equity. The Successor Agency 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 of Huntington Beach 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 of Huntington Beach under law and/or in equity. 7. The Successor Agency 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 the activity approved by 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. 8. This Resolution shall take effect upon the date of its adoption. SA Reso—City Loan Agmt-Emerald Cove Property Transfer Jan.5 2017 Page 5 of 6 RESOLUTION NO. 2017-13 PASSED AND ADOPTED by the Successor Agency to the Redevelopment Agency of the City of Huntington Beach at a meeting thereof held on the 17th day of January , 2017. s Chairperson REVIEWED AND APPROVED: INITIATED AND A VED: ecuti e Director Deputy Executive Director APPROVED A8jO FORM: Board Counsel SA Reso—City Loan Agmt-Emerald Cove Property Transfer Jan.5 2017 Page 6 of 6 Successor Agency Res. No. 2017-13 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU 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 January 17, 2017 and that is was so adopted by the following vote: AYES: O'Connell, Semeta, Posey, Hardy, Brenden, Peterson NOES: None ABSENT: Delgleize ABSTAIN: None Clerk of The Successor Agency to the Redevelopment Agency of the City of Huntington Beach, California