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HomeMy WebLinkAboutRedevelopment Agency Resolution 378 - Agency Debt - Operativ Council/Agency Meeting Held: D 09 Deterred/Continued to: ftL.oved �nall p roved ❑ Denied i CI r s Sign t e Council Meeting Date: 10/19/2009 Department ID Number: FN 09-005 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCI EMBERS/HONORABLE CHAIR AND AGENCY MEMBERS / SUBMITTED BY: FRED A. WILSON, CITY ADMINISTRATPINCE ECUTIVE DIRECTOR PREPARED BY: BOB WINGENROTH, DIRECTOR OF FI STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT `S DEPUTY EXECUTIVE DIRECTOR SUBJECT: A RESOLUTION OF THE REDEVELOPMENT AGENCY 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 IE tement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: 7-c-.,z-:nJcx �C o arc-no&) A)o • ,-3 :7(f 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: 1. Merged Project Area -debt repayment already budgeted in FY 2008/09 - $4,335,000. 2. Merged Project Area - Big O Tire debt repayment - $105,600 (discussed in-aftached- fiscal impact .) `SCE CR-7 COr» M4-10 «nC1J REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION MMEETWG DATE: 10/19/2009 DEPARTMENT ID NUMBER: FN 09-005 Recommended Action: Motion to: Adopt Resolution No. 378 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. ,Alternative Action(s): Adopt the agreement with modifications that the City Council would specify. Anal sis: To receive tax increment revenue, the Redevelopment Agency must have sufficient debt on its books each year. Huntington Beach accounts for all possible eligible Agency 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. The debt was decreased by the 2008/09 budgeted debt repayment of $4,335,000. In addition, staff recommends that $105,600 (representing revenue from the Big O Tire lease) be repaid from the Merged Project Area Capital Projects Fund to the General Fund. There is no change in the debt for the Southeast Coastal Project Area other than for interest accrual. Attachment 2 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 Agreements and Owner Participation Agreements with private parties. On September 2, 2003, the Council/Agency approved a Cooperation Agreement Regarding Capital Improvements in the Southeast Coastal Project area. The debt in this project area is recorded on a prospective basis. Attachment 3 shows the breakdown of the operative agreement debt by fund and the changes for the Southeast Coastal Project Area. Strategiic Plan Goal: Maintain, improve and obtain funding for public improvements. EnvFronmental Status: No'i,,': appal cable. -2- 10/6/2009 10:28 AM REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION MEETING DATE: 10/19/2009 DEPARTMENT ID NUMBER: FN 09-005 Attachment(s): , o - berr Ro. ® - e o 1. Resolution Number 378, "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." 2. Merged Project Area Pre AB 1290 Agency Debt as of September 30, 2009. 3. Southeast Coastal Project Area Post AB 1290 Agency Debt as of September 30, 2009 and Southeas Coastal Project Area Future Capital Projects Balance—General Fund as of September 30, 2009. -3- 10/6/200910:25 AM ATTACHMENT # 1 RESOLUTION NO. 37 8 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 Oakview 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 ("Agency") and the City of Huntington Beach ("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 06-580.001/36655 1 Agency Resolution No. 37 8 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, 2009. 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 SCRP Total Operative Agreement Debt 10/1/08 $84,384,821 $7,358,166 $92,742,987 Accrued Interest 10/1/08 to 9/30/09 $ 3,215,063 $ 20,980 $ 3,236,043 Other Reductions of Debt $ (4,440,600) -- $ (4,440,600) Total Agency Debt as of 9/30/09 83-159,284 7 379 146 90,538.430 SECTION 3_ 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 19th day of October 2009, Chairperson REVIEWS APPROVED: INITIATED AND APPROVE Plive Director Director of Finance APPROVE TO FORM: f v 1 Agency ttorney 06-580.001/36655 2 Res. No. 378 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 October 19, 2009 and that it was so adopted by the following vote: AYES: Carchio, Dwyer, Green, Bohr, Coerper, Hansen NOES: None ABSENT: Hardy ABSTAIN: None Q"ij- CI of the RedevelopmEY Agency of the City of Huntington Beach, CA ATTACHMENT #2 Merged Project Area Pre AB 1290 Agency Debt As of September 30, 2009 DEBT @ BUDGETED ACCRUED DEBT @ General Fund 10/1/2008 REPAYMENTS INTEREST 9/30/2009 Direct Advances $ 3,765,032 $ - $ - $ 3,765,032 Interest On Direct Advances - (143,448) 143,448 - Total Direct Advances 3,765,032 (143,448) 143,448 3,765,032 Indirect Advances 6,567,353 6,567,353 Interest On Indirect Advances - (250,216) 250,216 - Total Indirect Advances 6,567,353 (250,216) 250,216 6,567,353 Land Sales 32,833,417 32,833,417 Interest On Land Sales 30,994,917 (4,046,936) 2,431,860 29,379,841 Total Land Sales 63,828,334 (4,046,936) 2,431,860 62,213,258 Total General Fund 74,160,719 (4,440,600) 2,825,524 72,545,643 Sewer Fund Direct Advances 130,560 - - 130,560 Interest On Direct Advances 119,065 - 9,511 128,576 Total Direct Advances 249,625 - 9,511 259,136 Deferred Development Fees 37,888 - - 37,888 Interest On Deferred Development Fees 117,576 - 5,923 123,499 Total Deferred Development Fees 155,464 - 5,923 161,387 Total Sewer Fund 405,089 - 15,434 420,523 Drainage Fund Direct Advances 250,000 - - 250,000 Interest On Direct Advances 351,596 - 22,921 374,517 Total Direct Advances 601,596 - 22,921 624,517 Deferred Development Fees 53,650 - - 53,650 Interest On Deferred Development Fees 111,839 6,305 118,144 Total Deferred Development Fees 165,489 - 6,305 171,794 Total Drainage Fund 767,085 - 29,226 796,311 Park A &D Fund Deferred Land Sale 1,740,834 - - 1,740,834 Interest On Deferred Land Sale 3,214,813 - 188,810 3,403,623 Total Land Sales 4,955,647 - 188,810 5,144,457 Deferred Development Fees 247,664 - - 247,664 Interest On Deferred Development Fees 119,916 - 14,005 133,921 Total Park A&D Deferred Dev Fees 367,580 - 14,005 381,585 Total Park A&D 5,323,227 - 202,815 5,526,042 Water Fund Direct Advances 1,138,000 - - 1,138,000 Interest On Direct Advances 2,590,701 - 142,064 2,732,765 Total Water Fund 3,728,701 - 142,064 3,870,765 Total Pre AB 1290 Debt-All Funds $ 84,384,821 $ (4,440,600) $ 3,215,063 $ 83,159,284 ATTAC H M E N T #3 Southeast Coastal Project Area Post AB 1290 Agency Debt As of September 30, 2009 BEGINNING BALANCE @ BUDGETED ACCRUED DEBT @ General Fund 10/01/2008 REPAYMENTS 'INTEREST 9/30/2009 Direct Advances $ 199,946 $ - $ $ 199,946 Interest On Advances 38,229 - 9,074 47,303 Total Direct Advances 238,175 - 9,074 247,249 Capital Improvement Projects 270,000 - - 270,000 Interest 42,502 - 11,906 54,408 Total Capital Improvement Projects 312,502 - 11,906 324,408 Total General Fund 550,677 - 20,980 571,657 lVlercred Project Area RDA Fund Direct Advances 302,489 - - 302,489 Interest On Advances - - N/A' - Total Merged Project Area RDA Fund 302,489 - - 302,489 Total Post AB 1290 Debt-All Funds $ 853,166 $ - $ 20,980 $ 874,146 Southeast Coastal Project Area Future Capital Projects Balance-General Fund As of September 30, 2009 BEGINNING AVAILABLE BALANCE @ BUDGETED ACCRUED BALANCE @ 10/01/2008 REPAYMENTS INTEREST 9/30/2009 Capital Improvement Projects $ 6,505,000 $ - $ - $ 6,505,000 RCA ROUTING SHEET INITIATING DEPARTMENT: Finance SUBJECT: Approval of an Operative Agreement Between the City of Huntington Beach and the Redevelopment Agency of the.City of Huntington Beach for the Project Areas COUNCIL MEETING DATE: October 19, 2009 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over$5,000) Attached Not Applicable ❑ Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETORNED FOR,*ARDED Administrative Staff Oillf Deputy City Administrator Initial V� / City Administrator Initial City Clerk FAXPLANAPON FOR RETURN OF ITEM: RCA Author: Robert Sedlak, Dahle Bulosan, &Kellee Fritzal CITY OF HUNTINGTON BEACH INTER-DEPARTMENTAL COMMUNICATION FINANCE DEPARTMENT TO: JOAN FLYNN, CITY CLERK FROM: BOB WINGENROTH, DIRECTOR OF FINANCE DATE: OCTOBER 19, 2009 SUBJECT: LATE COMMUNICATION FOR THE CITY COUNCIL MEETING OF OCTOBER 19, 2009 — ITEM 4 At the bottom of page one of the RCA under the "Funding Source" heading, there is a reference to an attached fiscal impact statement. A fiscal impact statement was not required for this item and is not attached. 2. Merged Project Area — Big O Tire debt repayment — $105,600 (diGGUssed in �++-Gk^ d fiscal imr»n4 c•4��crr.on� \ Thank you.