HomeMy WebLinkAboutAdopt Agency Resolution No. 352 Approving Amendment of Redev M ,
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Council/Agency Meeting Held: S
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied C' C erk' Sign t re
Council Meeting Date: 11/15/2004 Departmen ID Number: AS O4-039
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCILIREDEVELOPMENT AGENCY JWTION
SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCICRIEMOERS/
REDEVELOPMENT AGENCY MEMBERS '
SUBMITTED BY: PENELOPE CUL RETH��RAFT, City Administrator/Exel6uti
Director -
PREPARED BY: CLAY MARTIN, Director of Administrative Services
DAVID C. BIGGS, Director of Economic Development/ eputy
Executive Director
SUBJECT: Amendment of Redevelopment Agency Debt Pursuant to
Operative Agreement Between the City and Redevelopment
Agency for the Redevelopment Project (Merged Project Area) and
Southeast Coastal Project Area D20 3-,�,2-
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: The Redevelopment Agency of the City of Huntington Beach incurs debt that
allows it to receive tax increment revenue in accordance with California Community Redevelopment
law. The Agency is required to file an annual statement to document this debt with the County of
Orange Auditor/Controller. This statement is also needed for audit purposes and to keep the City
Council informed of the changes in the debt owed the City by the Redevelopment Agency for the
merged Huntington Beach Project Area and the Southeast Coastal Project Area.
Funding Source: N/A
Recommended Action: Motion to adopt Resolution No. &S,?, of the Redevelopment Agency of
the City of Huntington Beach amending the Agency Debt pursuant to the Operative Agreement
between the City of Huntington Beach and the Redevelopment Agency of the City of Huntington
Beach for the merged Huntington Beach Project Area and the Southeast Coastal Project Area. The
debt at September 30, 2004 will be as follows:
Merged Project Area $89,283,958
Southeast Coastal Project Area 6,775,000
Total Debt $96,058,958
Alternative Actions :
1. Do not adopt the resolution in which would result in no updating of the Agency debt to the City.
2. Adopt the agreement with modifications that the City Council would specify.
REQUEST FOR ACTION
MEETING DATE: 1 1/1 512004 DEPARTMENT ID NUMBER:AS O4-039
Analysis: To receive tax increment revenue, the Redevelopment Agency must have sufficient debt
on its books each year. It is common practice for cities to book all possible eligible expenditures
within a redevelopment project area, such as capital projects, as a debt of the Redevelopment
Agency. These capital projects have been undertaken as part of the normal course of business
through a number of the City's specialized funds, such as the Water Fund and the Sewer Fund. In
addition, interest accrues on this debt, based on the City's annual rate of investment return, which
further assures the Agency's ability to collect tax increment revenue in the future. There have been
no increases in the debt other than the interest accrual for the merged project area. There is no
change in the debt for the Southeast Coastal Project Area.
Merged Project Area:
The City charged the Agency 2.47% on all outstanding advances for October 15' to September 30th,
which is approximately the average yield earned by the City Treasurer on investments for the year
through June 30t', 2004. The total interest accruals were $2,327,934.
The City Council/Agency approved originally $4,912,678 of debt repayment for the 2003/2004 fiscal
year. On February 2, 2004, the City Council/Agency approved an amendment that changed the
repayment as follows:
Cash Debt Repayment- Original Budget $ 4,912,678
Current Year Business Development Expenses (credited against debt) 287,322
Changes Authorized in February 2, 2004 Council/Agency Action:
Increase in Overhead/Accounting Charges (charges do not reduce debt) (221,224)
Reducations due to Waterfront TOT transferred to General Fund (705,000)
Prior Business Development Expenses 2,886,474
Ocean View Estates Income 132,064
Fiscal Year 2003-2004 Debt Repayment $ 7,292,314
The schedule below shows the breakdown of the operative agreement debt by fund and the changes
during the year for the merged project area. It does not include debt incurred with entities other than
the City such as bonds, mortgages, and debt owed through Disposition and Development
Agreement's and Owner Participation Agreement's with private parties.
DEBT Q BUDGETED ACCRUED DEBT Q
GENERAL FUND 1011103 REPAYMENTS INTEREST 9/30/2004
DIRECT ADVANCES $11,585,792 $ (6,988,440) $ 4,597,352
INTEREST ON DIRECT ADVANCES 17,278 (303,874) 286,596 (0)
TOTAL DIRECT ADVANCES 11,603,070 (7,292,314) 286,596 4,597,352
INDIRECT ADVANCES 6,567,353 6,567,353
INTEREST ON INDIRECT ADVANCES 3,238,842 242,213 3,481,055
TOTAL INDIRECT ADVANCES 9,806,195 - 242,213 10,048,408
LAND SALES 32,833,417 32,833,417
INTEREST ON LAND SALES 30,945,252 1,575,333 32,520,586
TOTAL LAND SALES 63,778,669 - 1,575,333 65,354,003
TOTAL GENERAL FUND 85,187,935 (7,292,314) 2,104,142 79,999,763
SEWER FUND
DIRECT ADVANCES 130,560 130,560
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REQUEST FOR ACTION •
MEETING DATE: 11/15/2004 DEPARTMENT ID NUMBER:AS O4-039
INT ON DIRECT ADV 78,859 5,173 84,032
TOTAL DIRECT ADV 209,419 - 5,173 214,592
DEFERRED DEVELOPMENT FEES 37,888 - 37,888
INT ON DEFERRED DEV FEES 92,537 3,221 95,758
TOTAL DEF DEV FEES 130,425 - 3,221 133,646
TOTAL SEWER FUND 339,844 - 8,394 348,238
DRAINAGE FUND
DIRECT ADVANCES 250,000 - - 250,000
INT ON DIRECT ADV 254,702 - 12,466 267,168
TOTAL DIRECT ADVANCES 504,702 - 12,466 517,168
DEFERRED DEVELOPMENT FEES 53,650 - 53,650
INT ON DEFERRED DEV FEES 85,185 3,429 88,614
TOTAL DEF DEV FEES 138,835 - 3,429 142,264
TOTAL DRAINAGE FUND 643,537 - 15,895 659,433
PARK A AND D FUND
DEFERRED LAND SALE 1,740,834 - - 1,740,834
INTEREST ON DEFERRED LAND SALE 2,416,642 - 102,690 2,519,331
TOTAL LAND SALES 4,157,476 - 102,690 4,260,165
DEF DEV FEES 247,664 - 247,664
INT ON DEF DEV FEES 60,713 7,617 68,330
TOTAL PARKA AND D DEF DEV FEES 308,377 - 7,617 315,994
TOTAL PARK A AND D 4,465,853 - 110,307 4,576,160
CAPITAL IMPROVEMENT FUND
DIRECT ADV 200,000 - - 200,000
1 NT ON DIRECT ADV 283,022 - 11,931 294,953
TOTAL CAPITAL IMPROVEMENT FUND 483,022 - 11,931 494,953
WATER FUND
DIRECT ADV 1,138,000 - - 1,138,000
INT ON DIRECT ADV 1,990,146 - 77,265 2,067,411
TOTAL WATER FUND 3,128,146 - 77,265 3,205,411
TOTAL PRE AB 1290 DEBT-ALL FUNDS $94,248,337 $ (7,292,314) $2,327,934 $89,283,957
The Agency is now classifying debt as "Pre AB 1290" and "Post AB 1290." AB 1290 was a sweeping
Redevelopment reform bill enacted in 1993 that placed time limits on incurring debt within
Redevelopment project areas. Under the terms of AB 1290, debt incurred prior to January 1, 1994
can continue to be repaid after the project area has expired. Staff is recommending that all debt
repayments be applied first to debt incurred after January 1, 1994, then to debt incurred prior to that
date. All of the debt at year-end is considered pre AB 1290 debt.
Southeast Coastal Project Area:
On September 2, 2003, the Council/Agency approved a Cooperation Agreement Regarding Capital
Improvements in the project area. The debt in this project area is recorded on a prospective basis.
The amount identified as debt is the entire Conceptual Five Year Capital Improvement Program for
the project area totaling $6,775,000. The debt is activated as projects are begun. Each year,
projects are added or subtracted to reflect actual increment revenues received.
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REQUEST FOR. ACTION
MEETING DATE: 11/15/2004 DEPARTMENT ID NUMBER:AS O4-039
Environmental Status: NIA
Attachment(s):
City Clerk's
Page Number No. Description
1. Redevelopment Agency Resolution No. .35v;�
Redevelopment Agency
Resolution
0 RESOLUTION NO. 352
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH AMENDING THE AGENCY DEBT PURSUANT TO THE OPERATIVE
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH FOR THE
HUNTINGTON BEACH REDEVELOPMENT PROJECT,AND THE COOPERATION
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH REGARDING'
CERTAIN CAPITAL IMPROVEMENTS WITHIN OR OF BENEFIT TO THE SOUTHEAST
COASTAL REDEVELOPMENT PROJECT
WHEREAS,the City Council of the City of Huntington Beach (the"City Council")
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 Oak-view Redevelopment Project, and
the Redevelopment Plan for the Huntington Center Commercial District Redevelopment Project,
respectively; and
The Redevelopment Agency of the City of Huntington Beach(the "Agency") and the City
of Huntington Beach(the "City") entered into a Cooperative Agreement, dated June 20, 1983, by
which the City agreed to provide to the Agency certain assistance and to otherwise cooperate
with the Agency in carrying out redevelopment projects; and
Pursuant to the Cooperative Agreement, the Agency and City Council entered into
Operative Agreements for the Yorktown-Lake, Talbert-Beach, Main-Pier, Oakview and
Huntington Center Redevelopment Projects (the "Constituent Projects"), by which the City
provided the 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
Said Operative Agreements also identified the terms under which the Agency would
reimburse the City for the associated costs of such services, improvements, facilities and funds;
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(the"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 Agency and the City entered into a Cooperation Agreement, dated September 2,2003
(the "SCRP Cooperation Agreement"), regarding redevelopment projects and capital
improvements to be carried out in the SCRP Area; and
i
04reso/Agency Debt 2004
RLS 2004-303
Resolut' No. 352
It is now necessary and appropriate that the City Council and the Agency amend the
Operative Agreements pursuant to the Cooperative Agreement and the SCRP Cooperation
Agreement, to reflect the Agency's total debt as of September 30, 2004,
NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does
hereby resolve as follows:
SECTION 1. That the Operative Agreements between the Redevelopment Agency and
the City of Huntington Beach for the implementation of the HBRP, and the SCRP Cooperation
Agreement, are still in effect as previously approved.
SECTION 2. That,pursuant to such Operative Agreements and the SCRP Cooperation
Agreement, the Agency debt to the City, which is to continue to be carried forward for the HBRP
and the SCRP, is hereby amended as follows:
HBRP Operative Agreements Debt 10/1/03 $ 94,248,338
Accrued Interest 10/1/03 to 9/30/04 S 2,327,934
SCRP Debt 9/3C04 S 6,775,000
Other Reductions of Debt < 7?92,:14 >
Total Agency Debt at 9/30/04 S 96,05LM
SECTION;. The Chairperson is hereby authorized and directed to amend the Agency .
debt to the City as approved hereby.
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington
Beach at a regular meeting thereof held on the 15th day of November 2004.
Ch ' ers ,
REVIEWED AND APPROVED: APPROVED AS TO FORM:
E. ecutive Director i Ag nicy Attorney
AVITIATED rR
Direct f Administrative Services
2
04reso/Agency Debt 2004
RiS 2004-305
Res. No. 352
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 the 15th day of November 2004 and that it was so
adopted by the following vote:
AYES: Sullivan, Coerper, Hardy, Green, Boardman, Cook,Winchell
NOES: None
ABSENT: None
ABSTAIN: None
Clerk&t the Redevelopment aency
of the City of Huntington Beach, CA
RCA ROUTING SH ET
INITIATING DEPARTMENT: Administrative Services/Economic Development
SUBJECT: Amendment of the Agency Debt Pursuant to the
Operative Agreement Between the City and the
Redevelopment Nency for the Redevelopment Project
COUNCIL MEETING DATE: November 15, 2004
RCA ATTACHMENTS STATUS
Ordinance (wlexhibits & legislative draft if applicable) Attached ❑
Not licable
Resolution (wlexhibits & legislative draft if applicable) Attached
Not Applicable ❑
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Applicable
Contract/Agreement El
w/exhibits if applicable) Attached
( p } Not Applicable
(Signed in full by the City Aftomey)
Attached ❑
Subleases, Third Party Agreements, etc. Not Applicable
(Approved as to form by City Attome
Attached ❑
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Attached ❑
Fiscal Impact Statement (Unbudget, over $5,000) Not Applicable
Attached ❑
Bonds (If applicable) Not Applicable
Staff Report if applicable) Attached
Sta
p � pp } Not Ap licable
ort if licable
Commission, Board or Committee Re a Attached
p ( PP ) Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
pP Not Applicable
... . . .... .....
EXPLANATION FOR MISSING ATTACHMENTS
...............
REVIEWED. RETURNED FORWARDED
Administrative Staff
Assistant City Administrator initial
City Administrator Initial
rCity Clerk
EXPLANATION_FOR RETURN OF ITEM:'
Only)(Below Space For City Clerk's Use
RCA Author: Sedlak,x 5907