HomeMy WebLinkAboutRDA - Redevelopment Agency - 2011-08-01 P R 1= O F
PUBLICATION
FPROVS,ON,
ITY OF HUNTINGTON BEACH
STATE OF CALIFORNIA) LEGALORDINANCE NOTICE
ORDINANCE NO:3918
opted by the City Caww1 on AUGUST 15,2011
COUNTY
) SS. IORDINANCE OF THE CITY COUNCIL OF THE i
U��NT Y I° ORANGE ) OF HUNTINGTON BEACH AUTHORIZING ARY
PAR-
TICIPATION IN THE ALTERNATIVE VOLUNTARY
EVELOPMENT PROGRAM, SUBJECT TO CER-
CONDITIONS AND RESERVATIONS"
OPSIS:
JUNE.28, 2011, GOVERNOR BROWN SIGNED i
1 26 AND ABX1 27, .COLLECTIVELY KNOWN
am a citizen of the United States and a THE "BILLS." ABXl'26 IMMEDIATELY SUS-
fDS REDEVELOPMENT AGENCIES' OPER-
resident of the County of Los Angeles; I NS AND EFFECTIVELY DISSOLVES REDEVEL-
ENT AGENCIES STATEWIDE. AK 27
am over the age of eighteen years, and OWS AGENCIES WHOSE LEGISLATIVE BODIES
not a art to or interested in the notice Y COUNCIL) THAT ARE WILLING TO COMPLY
p y � H "VOLUNTARY"PAYMENTS. TO THE'STATE �
BE EXEMPTED FROM THE ELIMINATION
published. I am a principal clerk of the V4SIONS IN ABX1 26. THE CITY COUNCIL
BOTH ANHUNTINGTON BEACH i ANOPTED AGREEMENT FOR PAIYMENT NANCE OF HET'VO UND
TARY"CONTRIBUTION TO THE STATE. '
INDEPENDENT, which was adjudged a PASSED AND -ADOPTED by the City Council of
the City of Huntington Beach at a regular meeting
newspaper of general circulation on held August 15, 2011 by the-following roll call j
SeSeptember 29 1961 case A6214 and vote:
p , , , I AYES: Shaw, Harper, Hansen, Carchio, Bohr,
June 11, 1963, case A24831, for the NOES:Nonedman
ABSTAIN:None
City of Huntington Beach, County of ABSENT:None
THE FULL TEXT OF THE ORDINANCE IS AVAIL-
Orange, and the State of California. ABLE IN THE CITY CLERK'S OFFICE.
Attached to this Affidavit is a true and This ordinance is effective 30 days after
adoption: �
OF
complete copy as was printed and CITY 2000 MA TON IN THE TEACH
HUNTINGTON BEACH,CA 92648 I,
published on the following date(s): 714-536-5227
g /� ry .y p JOAN L.FLYNN,CITY CLERK '
Thursday, August 25, 20 1 A I Augushed t 25,Huntington Beach Independent
August
I certify (or declare) under penalty
of perjury that the foregoing is true
and correct.
Executed on September 21 , 2011
at Los Angeles, California
nature
Council/Agency Meeting Held:_ AM /.
Deferred/Continued to:.Azvor
Appro ed ❑ Conditionally Approved ❑ Denied City Ier ' Signatyre
Council Meeting Date: August 1, 2011 Department ID Number: ED 11-33
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager/Executive Director
PREPARED BY: Stanley Smalewitz, Deputy Executive Director/Director of Economic
Development
SUBJECT: Approve for introduction Ordinance No. 3918 opting-in to an
alternative Redevelopment Program; adopt Agency Resolution No.
391 reducing the Fiscal Year 2011/12 Affordable Housing Allocation;
and, City Council and Agency Board Approval of an Agreement
between the City and Redevelopment Agency providing funding for
the required payments
Statement of Issue: On June 28, 2011, Governor Brown signed ABX1 26 and ABX1 27,
collectively known as the "Bills". ABX1 26 immediately suspends redevelopment agencies'
operations and effectively dissolves redevelopment agencies statewide. ABX1 27 allows
agencies whose legislative bodies (City Council) that are willing to comply with "voluntary"
payments to the State to be exempted from the elimination provisions in ABX1 26. The City
Council is asked to adopt both an Ordinance to "Opt-In" and an Agreement for payment of
the "voluntary" contribution to the State. The Redevelopment Agency is requested to adopt a
Resolution not to fund the affordable housing allocation for FY 2011-12.
Financial Impact: The anticipated voluntary opt-in payment for Fiscal Year 2011-12 is
$6,851,683. The payment will be funded through reductions in the Fiscal Year 2011-12
Redevelopment Agency budget, not funding the affordable housing allocation for FY 2011-12
and other budget changes to be developed as part of the Fiscal Year 2011-12 City Budget
process. The "Opt-In" provides for the annual loan repayment from the Agency to the City of
$4.9 million to continue.
Recommended Action: Motion to:
A) Approve for introduction Ordinance No. 3918, "An Ordinance of the City Council of the
City of Huntington Beach, California, Authorizing the City of Huntington Beach to Participate
In the Alternative Voluntary Redevelopment Program, Subject to Certain Conditions and
Reservations;" and,
HB -895- Item 29. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 8/1/2011 DEPARTMENT ID NUMBER: ED 11-33
B) Adopt Agency Resolution No. 391, "A Resolution of the Redevelopment Agency of the
City of Huntington Beach Reducing Its Allocation to the Low and Moderate Income Housing
Fund for the 2011-12 Fiscal Year and Making Certain Findings and Determinations;" and,
C) Approve the "Remittance Agreement Pursuant to California Heath and Safety Code
Section 34194.2" between the City and Redevelopment Agency to provide funding for the
required payments.
Alternative Action(s):
Do not approve the Ordinance, Resolution, and Remittance Agreement and direct staff as
appropriate.
Analysis:
On June 28, 2011, Governor Brown signed ABX1 26 and ABX1 27, collectively the "Bills".
ABX1 26 immediately suspends redevelopment agencies' operations and effectively
dissolves redevelopment agencies statewide. ABX1 27 allows agencies whose legislative
bodies (City Council) that are willing to comply with "voluntary" payments to the State (via the
County Auditor/Controller) to be exempted from the elimination provisions in ABX1 26. The
California Redevelopment Association (CRA) and League of California Cities (League) have
filed a lawsuit and requested a stay to the State Supreme Court challenging the
constitutionality of the Bills.
Pending action by a court declaring the Bills unconstitutional or the issuance of a stay, the
Bills are now law. To best protect the options of the City and Redevelopment Agency going
forward and to guard against possible future actions by the State, it is recommended that the
following actions be taken pending resolution of the proposed lawsuit or the issuance of a
stay:
1. City Council: Under the terms of ABX1 27, enact an ordinance to "Opt-In" to make the
"voluntary" payments and authorize the City to participate in the "alternative voluntary
redevelopment program";
2. Redevelopment Agency: Adopt a resolution reducing the allocation to the Low and
Moderate Income Housing Fund (Housing Fund) for Fiscal Year 2011-12 to facilitate the
State payment; and
3. City Council and Redevelopment Agency: Approve a Remittance Agreement between the
City and the Agency to establish funding the "Opt-In" payment by the City.
The "Opt-In" Ordinance, if enacted by the City Council, exempts the Agency from the
immediate suspension of powers it would otherwise be subject to under ABX1 26 (except for
existing obligations) as well as avoiding the successor agency and oversight committees that
are part of ABX1 26. The City's General Fund is not pledged to make these payments. The
Ordinance also reserves the right of the City Council to: (1) challenge the validity of the
legislation and (2) reserves the right of the City Council to repeal the Ordinance at any time in
the future at the City's sole discretion.
Absent an action by a Court to stay enforcement of the Bills, the City will be required to make
a one-time payment to the State of approximately $6.852 million in Fiscal Year 2011-12.
Item 29. - 2 HB -896-
REQUEST FOR COUNCIL. ACTION
MEETING DATE: 8/1/2011 DEPARTMENT ID NUMBER: ED 11-33
One half of the $6.852 million payment is due on January 15, 2012, and the other half on
May 15, 2012. In Fiscal Year 2012-13 the payment is estimated at $1.6 million. In on going
years, the payment is $1.6 million plus 80 percent of the school district's share of any post
November 1, 2011, new indebtedness.
To assist cities that intend to make the "Opt In" payment utilizing Agency funds, the
Resolution allows a one-time withholding of the normally required 20% set-aside to the
Housing Fund. The total amount of the normal set-aside payment is estimated at $3.65
million in Fiscal Year 2011-12. Since existing housing funds cannot be used to make the
Opt-In Payment, the proposed Resolution authorizes staff to withhold an amount up to 100%
of the normal set-aside payment ($3.65 million) for Fiscal Year 2011-12. Staff proposed to
use 100% of the withheld funds as part of the Opt-In payment. There are unallocated funds
in the Housing Fund to fund operations for Fiscal Year 2011-12.
The Remittance Agreement, as contemplated by the legislation, provides the vehicle by
which the Agency commits to transfer sufficient funds to the City to make the required
payments.
With the adoption of the Ordinance, Resolution and Remittance Agreement the
Redevelopment Agency will be re-established. Historically, the City has advanced certain
amounts to the Redevelopment Agency to assist in funding land purchase, administrative,
public improvements and other expenses necessary for the implementation of the
redevelopment plans. As of September 2010, the total amount of debt owed to the City by
the Agency was $85,550,000 comprised of advances payable, reimbursement and
cooperative agreements. The following represents a summary of projects that the Agency
borrowed money to fund:
- Pledged assistance with public infrastructure, the Mola Development (Town Square) for a
mixed use project
- Relocation of Mobile Home Park Residents from Driftwood to Oceanview Mobile Home
Park, part of Mayer Corporation
- Construction of Emerald Cove Senior Complex— land and development costs
- Main Street Parking Structure — acquisition of land and development
- Acquisition of land and entering into a Disposition and Development Agreement with
California Resorts for a mixed use project— now Pierside Pavilion
Environmental Status: Not Applicable
Strategic Plan Goal: Maintain financial viability and our reserves
xB -897- Item 29. - 3
REQUEST FOR COUNCIL ACTION
MEETING DATE: 8/1/2011 DEPARTMENT ID NUMBER: ED 11-33
Attachment(s):
o Qp4qrilption
1. Ordinance No. 3918, "An Ordinance of the City Council of the City of Huntington
Beach, California, Authorizing the City of Huntington Beach to Participate in the
Alternative Voluntary Redevelopment Program, Subject to Certain Conditions and
Reservations."
2. Resolution No. 391, "A Resolution of the Redevelopment Agency of the City of
Huntington Beach Reducing its Allocation to the Low and Moderate Income
Housing Fund for the 2011-12 Fiscal Year and Making Certain Findings and
Determinations."
3 Remittance Agreement Pursuant to California Health and Safety Code Section
34194.2 between the City and Redevelopment Agency
Item 29. - 4 xB -898-
ATTACHMENT # 1
ORDINANCE NO. 3 918
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH AUTHORIZING PARTICIPATION IN THE
ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM,
SUBJECT TO CERTAIN CONDITIONS AND RESERVATIONS
WHEREAS, Assembly Bill xl 27 ("AB 27") is to be codified as Part 1.9 of the
California Health and Safety Code ("Part 1.9"); and
WHEREAS, AB 27 establishes a voluntary alternative redevelopment program
whereby the City of Huntington Beach Redevelopment Agency ("Agency") would be
authorized to continue to exist upon the enactment of an ordinance by the City to comply with
the provisions of Part 1.9; and
WHEREAS, AB 27 requires the City to notify the County Auditor-Controller
("County"), the State Controller, and the State Department of Finance on or before November
1, 2011,that the City will comply with Part 1.9; and
WHEREAS, AB 27 requires the City to make specified remittances to the County in
order to continue the existence of the Agency, as prescribed in Part 1.9; and
WHEREAS, AB 27 authorizes the City to enter into an agreement with the Agency,
whereby the Agency would transfer a portion of its tax increment to the City for the purpose
of financing certain activities within the City's redevelopment areas, as specified in Part 1.9;
and
WHEREAS, AB 27 imposes specified sanctions on the City in the event that the
City fails to make the required remittances, as determined by the Director of Finance; and
WHEREAS, AB 27 authorizes the County to charge a fee that does not exceed the
reasonable costs to the County auditor-controller to implement the provisions of Part 1.9; and
WHEREAS, AB 27 authorizes the City to establish a new redevelopment agency if
its former agency has been dissolved only after the debt obligations of the Agency have been
retired and the City satisfies the provisions of Part 1.9; and
WHEREAS, it is hereby acknowledged by the City Council that the California League
of Cities, the California Redevelopment Association, and special counsel for the City have
respectively opined that certain or all provisions of AB 26 and AB 27, including but not
limited to the effectiveness date, violate the State Constitution and other laws (collectively,
"Laws"), and are invalid and unenforceable; and
68139 1
Ord. No. 3918
WHEREAS, the City Council does not intend, by enactment of this Ordinance, to
waive any constitutional and/or legal rights by virtue of the enactment of this Ordinance and,
therefore, reserves all of its rights under Laws to challenge the validity of any or all provisions
of AB 26 and AB 27 in any administrative or judicial proceeding and/or repeal this ordinance,
without prejudice to the City's right to recover any amounts remitted under Part 1.9; and
WHEREAS, the City Council does not intend, by enactment of this Ordinance, to
pledge any of its general fund revenues or other assets, to make the remittance payments
contemplated by Part 1.9, it being understood by the City Council that any remittance
payments will be funded solely from Agency funds and/or assets transferred to the City in
accordance with Part 1.9;
WHEREAS, the City Council does not intend, by enactment of this Ordinance to
waive any rights of appeal regarding the amount of any remittance established by the
Department of Finance, as provided in Part 1.9,
NOW, THEREFORE, the City Council hereby ordains as follows:
SECTION 1. Authorization to Continue Agency. Subject to Sections 3 and 4, herein,the City
hereby commits to comply with and make the remittances required by Part 1.9, and authorizes
the continuation of the Agency in accordance with the provisions of AB 27. Any remittance
payments required to be paid by the City by Part 1.9 shall be paid solely from Agency funds
and/or assets transferred to the City in accordance with Part 1.9.
SECTION 2. Application. If any provisions of this Ordinance or the application thereof is
held to be invalid for any reason, the remainder of this Ordinance and the application of
provisions thereof shall not be affected thereby.
SECTION 3. Reservation of Rights. It is the position of the City that certain or all provisions
of AB 26 and AB 27 violate the Laws, as referenced in the recitals, above, and are invalid and
unenforceable. Neither the adoption of this Ordinance, nor the acknowledgment of or
references to any provisions of AB 26 and AB 27, nor the City's payment of any remittances
contemplated by AB 27 shall be deemed to be, nor are they intended as, an acknowledgment
of the validity of AB 26 and AB 27, and the City reserves all rights in its sole discretion to
challenge the validity of any or all provisions of AB 26 and AB 27 in any administrative or
judicial proceeding and/or repeal this ordinance, without prejudice to the City's right to
recover any amounts remitted under Part 1.9.
SECTION 4. Enactment. This Ordinance shall only be deemed as"enacted"within the meaning
of Part 1.9 upon (i) adoption of this Ordinance and (ii) the legally effective date of AB 26 and
AB 27.
SECTION 5. Authorization of Implementing Actions. The City Manager is hereby authorized
to take any actions necessary to implement this Ordinance and comply with Part 1.9, including
without limitation,providing required notices to the Auditor Controller,the State Controller, and
68139 2
Ord No. 3918
the Department of Finance; entering into any agreements with the Agency to make the
remittance payments; or making any remittance payments.
SECTION 6. This ordinance shall become effective 30 days after its adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 15 t h day of August , 2011
z
Y
ATTEST: INITIATED AND APPROVED:
City Clerk Director of Economic Development
REV D A PROVED:
APPROVED AS TO FORM:
ity Manager
City XtOney
68139 3
Ord. No. 3915
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven; that the foregoing ordinance was read to said City Council at a regular
meeting thereof held on August 01, 2011, and was again read to said City Council at a
regular meeting thereof held on August 15, 2011, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on August 25,2011.
In accordance with the City Charter of said City
Joan L. Flynn, Ci . Cie C4& Clerk and ex-offici lerk
Senior Deputy City Clerk of the City Council of the City
of Huntington Beach, California
ATTACHMENT #2
RESOLUTION NO. 391
A RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH
REDUCING ITS ALLOCATION TO THE LOW AND
MODERATE INCOME HOUSING FUND FOR THE
2011-12 FISCAL YEAR AND MAKING CERTAIN
FINDINGS AND DETERNIINATIONS
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. Sections 33334.2 and 33334.3 of California's Community
Redevelopment Law [Health & Safety Code §§33000, et seq.] ("CRL") require the
Redevelopment Agency of the City of Huntington Beach ("Agency") to use 20 percent of
taxes allocated to the Agency pursuant to Section 33670 of the CRL ("Tax Increment") for
the purpose of increasing, improving, and preserving the community's supply of low and
moderate income housing and to hold such funds in a separate Low and Moderate Income
Housing Fund until used ("Low and Moderate Income Housing Fund").
Section 2. Assembly Billxl 26 and Senate Billxl 15 ("AB 27/SB 15") were
passed by the State Legislature on June 15, 2011,but have not yet been enacted.
Section 3 AB 27/SB 15, if enacted, would be codified as Part 1.9 of the
California Health and Safety Code("Part 1.9").
Section 4. AB 27/SB 15, if enacted, would, upon the enactment of specified
legislation concerning redevelopment, establish a voluntary alternative redevelopment
program whereby the Agency would be authorized to continue to exist upon the enactment of
an ordinance by the City of Huntington Beach ("City") to comply with the provisions of Part
1.9, including payment of an annual remittance to the County Auditor-Controller
("Remittance Ordinance").
Section 5. AB 27/SB 15, if enacted, would authorize the Agency to enter into an
agreement with the City whereby the Agency would transfer a portion of its Tax Increment to
the City in an amount not to exceed the amount of the City's annual remittance to the County
Auditor-Controller("Remittance Agreement").
Section 6. AB 27/SB 15, if enacted, would authorize the Agency to reduce its
allocation of Tax Increment to the Low and Moderate Income Housing Fund for the 2011-
2012 Fiscal Year if the City complies with the provisions of Part 1.9 and the Agency finds
that there are insufficient other moneys to meet its debt and other obligations, current priority
program needs or its obligations under the Remittance Agreement.
Section 7. The Agency has reviewed and duly considered the Staff Report,
documents and other written evidence presented at the meeting and believes that it will be in
the best interests of the City and the health, safety, morals and welfare of its residents, and in
accord with the public purposes and provisions of applicable state and local law and
- 1 -
68135
Agency Resolution No. 391
requirements to reduce its allocation of Tax Increment to the Low and Moderate Income
Housing Fund for the 2011-2012 Fiscal Year by [$ 3.8 mi 11 i onl ("Allocation Reduction").
Section 8. All other legal prerequisites to the adoption of this Resolution have
occurred.
Section 9. The Agency has received and heard all oral and written objections
pertaining to this matter, and all such oral and written objections are hereby overruled.
Section 10. The Agency hereby finds and determines that the foregoing recitals are
true and correct.
Section 11. Based upon evidence in the record, the Agency finds that there are
insufficient other moneys to meet its debt and other obligations, current priority program
needs or its obligations under the Remittance Agreement.
Section 12. The Agency finds and determines that it is necessary to implement the
Allocation Reduction for the 2011-2012 Fiscal Year.
Section 13. The Agency Executive Director, or designee, is hereby authorized to
take such actions as are necessary and appropriate to carry out and implement the Allocation
Reduction for the 2011-2012 Fiscal Year upon the City's enactment of the Remittance
Ordinance.
Section 14. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington
Beach at a regular meeting thereof held on the 1 s t day of August ,
201 1
a
C,/ai3Ran
ATTEST:
INITIATED AND APPROVED:
Agency Clerk
Deputy Executive Director
REVI A APP OVED:
APPROVED AS TO FORM:
A
City anager --n G " .- - -
Agency Counsel
-2-
68135
Res. No. 391
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, JOAN FLYNN, Clerk of.the Redevelopment Agency of the
City of Huntington Beach, California, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Redevelopment Agency of
the City of Huntington Beach at a regular meeting of said Redevelopment
Agency held on August 01, 2011 and that it was so adopted by the
following vote:
AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
C k of the Redevelopme9t Agency
of the City of Huntington Beach, CA
ATTACHMENT #3
REMITTANCE AGREEMENT
PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34194.2
THIS REMITTANCE AGREEMENT (this "Agreement") is entered into this /'�day
of (u.ST,' 2011, by and between the CITY OF HUNTINGTON BEACH, a municipal
corporation (the "City") and the CITY OF HUNTINGTON BEACH REDEVELOPMENT
AGENCY, a public body, corporate and politic (the "Agency"), with reference to the following
facts:
A. Legislation denominated Assembly Bill No. xl 27 ("AB27") was passed by the State
Legislature on June 15, 2011 and signed by the Governor on June 28, 2011.
B. AB 27 is to be codified as Part 1.9 of the California Health and Safety Code,
commencing with Section 34192 ("Part 1.9").
C. AB 27 establishes a voluntary alternative redevelopment program whereby the City may
choose to continue redevelopment pursuant to Part 1.9, upon the enactment of an ordinance by
the City to comply with the provisions of Part 1.9 and make certain remittances described in
Health and Safety Code Section 34194 to the county auditor-controller.
D. The City Council of the City of Huntington Beach (the "City Council") has adopted or,
concurrently with this Agreement, is adopting, an ordinance to comply with Part 1.9 (the
"Ordinance").
E. Pursuant to the Part 1.9 Ordinance, the City Council has committed to comply with and
make the remittances required by Part 1.9 and authorize the continuation of the Agency in
accordance with the provisions of AB 27.
F. Pursuant to Section 34194.1, in making remittances to the county auditor-controller
pursuant to Section 34194 or 34194.5, the City may use any available funds not otherwise
obligated for other uses.
G. Pursuant to Section 34194.2, the City may enter into an agreement with the Agency,
whereby the Agency will transfer a portion of its tax increment to the City, in an amount not to
exceed the annual remittance required that year pursuant to Chapter 3 of Part 1.9, for the purpose
of financing activities within the redevelopment area that are related to accomplishing the
redevelopment agency project goals.
H. The purpose of this Agreement is to provide for the transfer of funds by the
Agency to the City in an amount sufficient for the City to make the remittances required by Part
1.9., with net available tax increment in this current fiscal year and forthcoming fiscal years.
1. The term "Net Available Tax Increment" is defined as any tax increment funds allocated
to the Agency, net of existing debt service payments and existing third-party contractual
1
obligations, not including any funds on deposit in the Agency's Low and Moderate Income
Housing Fund.
J. The obligations of the Agency under this Agreement shall constitute an indebtedness of
the Agency for the purpose of carrying out the Redevelopment Plan for the Project Area.
NOW, THEREFORE,the parties hereto do mutually agree as follows:
I. INTRODUCTORY PROVISIONS
The recitals above are an integral part of this Agreement and set forth the intentions of
the parties and the premises on which the parties have decided to enter into this Agreement.
II. OBLIGATIONS OF THE PARTIES
1. The Agency shall transfer to the City in a timely manner Net Tax Increment or
other funds in an amount sufficient for the City to make the remittance payments required by
Part 1.9. The amounts to be transferred to the City shall be sufficient for the City to pay the
remittance amount determined by the State Director of Finance pursuant to Part 1.9, subject to
the City's right to appeal the amount of remittance to the director pursuant to Part 1.9.
2. Subject to receipt of sufficient Net Tax Increment or other funds from the
Agency, the City shall timely remit to the county auditor-controller the payments required by
Part 1.9 as provided in the Ordinance. The City's obligation to make such remittances shall be a
special limited obligation of the City payable solely from Net Available Tax Increment or any
other funds made available to the City by the Agency, including but not limited to amounts
previously or subsequently pledged to the City for payment of redevelopment expenses that
remain unencumbered. Nothing contained in this Agreement shall be deemed to be a pledge of
the City's general fund revenues or other assets to make the remittance payments contemplated
by Part 1.9, it being understood that the--any remittance payments shall be funded solely from
Agency funds and/or assets.
3. The obligations of Agency under this Agreement shall be payable out of Net
Available Tax Increment, as defined in the above recitals and/or as defined or provided for in
any applicable constitutional provision, statute or other provision of law now existing or adopted
in the future, levied by or for the benefit of taxing agencies in the Agency's redevelopment
project area(s), and allocated to the Agency and/or any lawful successor entity of the Agency
and/or any entity established by law to carry out the redevelopment plan for the redevelopment
project area(s) and/or expend tax increment or pay indebtedness of the Agency to be repaid with
tax increment, pursuant to Health and Safety Code Section 33670 or any applicable
constitutional provision, statute or other provision of law now existing or adopted in the future.
In the event that additional funds are required in order to make the Agency payments to the City
required by this Agreement, the Agency shall make such payments from income received by the
Agency from its projects and programs or any other additional funds available to it.
2
III. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of California Government Code section 895.2
imposing certain tort liability jointly upon public entities solely by reason of such entities being
parties to an agreement as defined by Government Code section 895, the parties hereto, as
between themselves, pursuant to the authorization contained in Government Code sections 895.4
and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or
employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in the
absence of Government Code section 895.2. To achieve the above-stated purpose, each party
indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses
that may be incurred by such other party solely by reason of Government Code section 895.2.
IV. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS
1. This Agreement shall be executed in duplicate originals, each of which is deemed
to be an original. This Agreement consists of four (4) pages which constitute the entire
understanding and agreement of the parties.
2. This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements between the parties
with respect to the subject matter of this Agreement.
3. This Agreement is intended solely for the benefit of the City and the Agency.
Notwithstanding any reference in this Agreement to persons or entities other than the City and
the Agency, there shall be no third party beneficiaries under this Agreement.
4. Any waiver or amendment of the provisions of this Agreement must be in writing
and signed by the authorized representatives of the parties.
V. SEVERABILITY
If any term, provisions, covenant or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall
continue in full force and effect unless the rights and obligations of the parties have been
materially altered or abridged by such invalidation, voiding or unenforceability.
VI. BINDING ON SUCCESSORS
This Agreement shall be binding on and shall inure to the benefit of all successors and
assigns of the parties, whether by agreement or operation of law. This Agreement shall survive
any full or partial merger of the City and the Agency and shall remain in effect and be fully
enforceable according to its terms.
3
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.
Attest: CITY OF H T GTON BEACH
By: By:
i ��4(4"—,
Clerk Wyl nager
Attest: CITY OF HUNTINGTON BEACH
REVELOP ENT AGENCY
By:
S retary x cuive Director
APPROVED AS TO FORM:
w
By:\rei AXI
C-..-J City Attorney
APPROVED AS TO FORM:
Kane, Ballmer & Berkman COUNTERPART
By:
Agency General Counsel
4
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.
Attest: CITY OF HUNTINGTON BEACH
By: By:
City Clerk City Manager
Attest: CITY OF HUNTINGTON BEACH
REVELOPMENT AGENCY
By: By:
Secretary Executive Director
APPROVED AS TO FORM:
By:
City Attorney
COUNTERPART
APPROVED AS TO FORM:
Kane, Ballmer & Berkman
By G�
gency General Counsel
4
Es aria, Patty
From: Fritzal, Kellee C1
Sent: Monday, August 08, 2011 11: 9-A
To: Esparza, Patty
Subject: FW: Need $ amount Agency Res�391em #29 last night's meeting
Line should $3.8 million, since the TI is projected at$18.8
From: Machado, Jason
Sent: Tuesday, August 02, 2011 4:19 PM
To: Farrell, Lori Ann; Fritzal, Kellee
Cc: Bulosan, Dahle
Subject: RE: Need $ amount - Agency Reso. 391 - item #29 last night's meeting
$18.8
From: Farrell, Lori Ann
Sent: Tuesday, August 02, 2011 4:17 PM
To: Fritzal, Kellee
Cc: Machado, Jason; Bulosan, Dahle
Subject: RE: Need $ amount- Agency Reso. 391 - item #29 last night's meeting
To truly be accurate it should read in the blank:
"By`an amount equal to 20%of Tax Increment received in FY 11-12' "
If that is too vague,then go with the estimated 20% number of$3,600,000 which is the higher number based on TI of
$18 million.
Is there a chance he TI will exceed $18 million and we will short ourselves?
Jason, remind me, what are we projecting to receive for current year?
From: Fritzal, Kellee
Sent: Tuesday, August 02, 2011 3:46 PM
To: Farrell, Lori Ann; Machado, Jason; Bulosan, Dahle
Subject: FW: Need $ amount - Agency Reso. 391 - item #29 last night's meeting
Importance: High
From: Esparza, Patty
Sent: Tuesday, August 02, 2011 2:51 PM
To: Fritzal, Kellee
Cc: Flynn, Joan
Subject: Need $ amount - Agency Reso. 391 - item #29 last night's meeting
Importance: High
i
Hi Kellee-Attached is a copy of Agency Reso. #391 that was adopted last night by council. On page
2, at the top of the page, you will notice there is a dollar amount that needs to be filled in. Please
provide the amount to be entered asap so I can complete the followup on this item. Thanks!
Patty Esparza, CJWC
Senior Deputy City Clerk
City of Huntington Beach
71 4-536-5260
`please think of trees before you print
2