HomeMy WebLinkAboutAdopt Successor Agency Resolution Nos. 2017-03, 2017-04, 201 Dept.ID ED 17-02 Page 1 of 5
Meeting Date: 1/17/2017
- CITY OF HUNTINGTON BEACH
`4x.r REQUEST FOR, SUCCESSOR AGENCY ACTION
MEETING DATE: 1/17/2017
SUBMITTED TO: Honorable Chair and Successor Agency Board Members
SUBMITTED BY: Fred A. Wilson, Executive Director
PREPARED BY: Lori Ann Farrell, Chief Financial Officer
Kellee Fritzal, Deputy Director, Business Development
SUBJECT: Adopt Successor Agency Resolution Nos. 2017-03 through 2017-14 Finding that
the Loans made by the Former Redevelopment Agency were for Legitimate
Purposes and Approving the Loans as Enforceable Obligations for Repayment
Statement of Issue:
In accordance with the Redevelopment Dissolution, AB X1 26, AB 1484, and SB 107, the
Successor Agency to the former Huntington Beach Redevelopment Agency is asked to approve the
repayment of loans from the City (General Fund and other Funds) by re-confirming that the loans
were made for eligible redevelopment projects and the loans are an enforceable obligation.
Financial Impact:
If approved by the State of California's Department of Finance, the City could receive repayment of
loans between $16 million to $55 million. The funds, if approved, would be repaid over multiple
years through the annual Recognized Obligation Payment Schedule (ROPS). It is anticipated the
City will be informed of the amount to be repaid, if any, by April 14, 2017.
Successor Agency Recommended Action:
A) Adopt Resolution No. 2017-03, "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 Acquisition Associated
with the Strand Project 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)"; and
B) Adopt Resolution No. 2017-04, "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 Relocation and
Demolition of Driftwood and Pacific Mobile Home Parks related to the Waterfront Master
Site Plan 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)"; and,
C) Adopt Resolution No. 2017-05, "A Resolution of the Successor Agency to the Huntington
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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 Relocation Costs paid to
Terry's Coffee Shop and First Interstate Bank 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)"; and,
D) Adopt Resolution No. 2017-06, "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 Relocation Costs Paid
to Wind and Sea Surf Shop 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)"; and,
E) Adopt Resolution No. 2017-07, "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 Acquisition Costs
Associated with the Second Block Alley and Street Improvement Project 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)"; and,
F) Adopt Resolution No. 2017-08, "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 Relocation, Property
Acquisition, and Other Project Costs Associated with the Third Block West
Condominium/Retail/Office Project in the Main-Pier Redevelopment Project Area 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)"; and,
G) Adopt Resolution No. 2017-09, "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 Acquisition of Land
within the Main-Pier Project Area for Phase II Development Projects 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)"; and,
H) Adopt Resolution No. 2017-10, "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 Acquisition of Land
within The Main-Pier Project Area to Implement the Construction of Parking Facilities within
the Downtown Main-Pier Area 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)"; and,
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Meeting Date: 1/17/2017
1) Adopt Resolution No. 2017-11, "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 Land and Right-Of-Way
Acquisition Costs connected with the Gothard-Hoover Extension Project and Development
of a Public Storage Facility in the Huntington Beach Redevelopment Project 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 A(B)"; and,
J) Adopt Resolution No. 2017-12, "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 FY 2004-05 Capital
Projects 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)"; and,
K) Adopt 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)"; and
L) Adopt Resolution No. 2017-14, "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
Bonds 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)."
Alternative Action(s):
Direct staff as necessary and do not approve the Resolutions and do not seek repayment of the
former Agency loans.
Analysis:
The City's Redevelopment Agency was created in 1969. At first, the Redevelopment Agency
consisted of several sub-areas. In 1996, the areas were combined into the Merged Project Area
including; Main Pier, Huntington Center, Talbert-Beach, Oakview, and Yorktown-Lake. In 2002, the
Southeast Coastal Redevelopment Project Area was formed. Redevelopment areas were required
to incur debt, prior to being able to collect the increased tax increment. The City's General Fund
and other Funds loaned money to the Agency for various redevelopment projects. Due to recent
legislation, the City's Funds can now begin to be repaid.
Under Assembly Bill No. X1 26 and the California Supreme Court's decision in California
Redevelopment Association v. Matosantos, the Redevelopment Agency of the City of Huntington
Beach, together with all other redevelopment agencies in the State of California, were dissolved in
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February 2012. Consistent with AB X1 26, the City became the Successor Agency of the
Huntington Beach Redevelopment Agency, and acquired its assets, funds, and enforceable
obligations.
In addition to AB X1 26, two clean-up redevelopment dissolution bills have been adopted to clarify
provisions of the law. Those two bills AB 1484 (2012) and SB 107 (2015) mandated that the
Successor Agency and Oversight Board take certain actions to wind-down the activities of the
former Redevelopment Agency. These activities have included review of housing assets, Long
Range Property Management Plan and the receipt of a Finding of Completion. The Huntington
Beach Successor Agency received a Finding of Completion on May 13, 2014.
The Successor Agency has completed all aspects of the redevelopment dissolution to be able to
request loan repayments to the City. Prior to being authorized to commence repayments of the
former loans, the Successor Agency must approve the loans as "eligible loans" under the
dissolution law. In addition, SB 107 has mandated that the interest rate on the loans be recalculated
from the date of the origination of the loan on a quarterly basis at a simple interest rate of 3%.
Eligible loans are defined in three areas: loans where money was transferred from the City to the
former redevelopment agency for an eligible purpose; agreements where the City transferred real
property to the former redevelopment agency for an eligible purpose and the redevelopment
agency is obligated repay; and third party contracts for infrastructure. The City's former
redevelopment agency has twelve such eligible loans and is asking the Successor Agency to
reconfirm these loans were for an eligible purpose and recommend approval by the Oversight
Board and placement on the Recognized Obligation Repayment Schedule for repayment to the
City. The loans are as follows:
1. Capital Improvement Projects in FY 2004/5 in the Southeast Coastal Redevelopment
Project area for the Magnolia Street and Sidewalk and Lighting project.
2. Loans by the Redevelopment Agency for the purchase of the Emerald Cove Senior
Housing Project.
3. Repayment of the Emerald Cove bonds (Certificates of Participation (COPS)) for the
construction of Emerald Cove Senior Housing Project.
4. Loan for the purchase of the Gothard/Hoover land (where Vans Skate Park is located).
5. Loans to purchase land for The Strand project.
6. Loans to purchase land for the Main Promenade Parking Structure and property on first
block.
7. Loans for land purchase, relocation and other project costs for Plaza Almeria.
8. Loans for alley and sidewalk improvements in the Downtown area.
9. Loans for relocation for the Strand project.
10. Loans for relocation for the Pierside Pavilion project.
11. Loans for the acquisition and relocation of mobile homes in the Waterfront commercial
Master Plan site.
12. Loans for land assemblage for the Strand Project.
Environmental Status: Not Applicable
Strategic Plan Goal:
Strengthen Economic and Financial Sustainability
Attachment(s):
1. Successor Agency Resolution No. 2017-03
2. Successor Agency Resolution No. 2017-04
3. Successor Agency Resolution No. 2017-05
4. Successor Agency Resolution No. 2017-06
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Meeting Date: 1/17/2017
5. Successor Agency Resolution No. 2017-07
6. Successor Agency Resolution No. 2017-08
7. Successor Agency Resolution No. 2017-09
8. Successor Agency Resolution No. 2017-10
9. Successor Agency Resolution No. 2017-11
10. Successor Agency Resolution No. 2017-12
11. Successor Agency Resolution No. 2017-13
12. Successor Agency Resolution No. 2017-14
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ATTACHMENT # 1
RESOLUTION NO. 2017-03
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 ACQUISITION ASSOCIATED WITH THE STRAND PROJECT 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.Xl 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—Line 49
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RESOLUTION NO. 2017-03
(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—Line 49
Jan.5 2017
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RESOLUTION NO. 2017-03
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund acquisition associated with the Strand Project. This City
Loan pertains to the purchase of land for assemblage of a 4-acre site for a mixed-use project
called The Strand. The land was purchased by the former Redevelopment Agency, with money
advanced from the City, and conveyed to CIM Group pursuant to a Disposition and
Development Agreement; 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 years of origination of the City
Loan were 1989, 1990, 1991 and 1994. 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
$10,208,846; 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
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),
SA Reso—City Loan Agmt—Line 49
Jan.5 2017
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RESOLUTION NO. 2017-03
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).
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);
SA Reso—City Loan Agmt—Line 49
Jan.5 2017
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RESOLUTION NO. 2017-03
(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.
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RESOLUTION NO. 2017-03
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.
Chairperson
REVIEWED AND APPROVED: INITI TEDAND rAPOVED:
E e u v Director Deputy Execu ' erector
APPROVED O FOR
Board Counsel
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Jan.5 2017
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Successor Agency
Res. No. 2017-03
I
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, J 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
ATTACHMENT #2
RESOLUTION NO. 2017-04
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 RELOCATION AND DEMOLITION OF DRIFTWOOD AND
PACIFIC MOBILE HOME PARKS RELATED TO THE WATERFRONT MASTER
SITE PLAN 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
SA Reso—City Loan Agmt—Line 48
Jan.5 2017
Page 1 of 6
RESOLUTION NO. 2017-04
"oversight board." The oversight board has been established for the Successor Agency
(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
SA Reso—City Loan Agmt—Line 48
Jan.5 2017
Page 2of6
RESOLUTION NO. 2017-04
as appropriate and necessary, and provided funds to carry out the Constituent Projects; and
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund the relocation and demolition of Driftwood and Pacific
Mobile Home Parks-related to the Waterfront Master Site Plan. This City Loan pertains to the
purchase of land, Driftwood Mobile Home Park, and relocation of the mobile home tenants,
pursuant to State law for development of the Waterfront project, as well as demolition costs.
This was a requirement and part of the overall financing that included a Section 108 Loan from
Housing and Urban Development (HUD) as well as the creation of a Community Facilities
District (CFD); 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 years of origination of the City
Loan were 1989 and 2001. 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 $14,398,411; 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
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
SA Reso—City Loan Agmt—Line 48
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-04
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 terns and conditions set
forth in H&S Code Section 34191.4(b).
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
SA Reso—City Loan Agnit—Line 48
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-04
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—Line 48
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-04
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.
7 se""A
IFMP—IWIM
C airperson
REVIEWS AND APPROVED: INITI EAAND PROVED:
VcKti'vi Director eputy Exec ' e Director
APPROVED AS
and Counsel
SA Reso—City Loan Agmt—Line 48
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-04
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
ATTACHMENT #3
RESOLUTION NO. 2017-05
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 RELOCATION COSTS PAID TO TERRY'S COFFEE SHOP AND FIRST
INTERSTATE BANK 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 I
(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—Line 47
Jan.5 2017
Page 1 of 6
I N NO. 2017-RESOLUTION 5 O 0
(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—Line 47
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-05
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund relocation costs paid to Terry's Coffee Shop and First
Interstate Bank. This City Loan pertains to relocation expenses incurred to relocate tenants
occupying Terry's Coffee Shop and First Interstate Bank pursuant to State law. The relocation
was required as part of the land purchase for Pierside Pavilion Disposition and Development
Agreement and later Owner Participation Agreement; 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 years of origination of the City
Loan was 1992. 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 $296,379; 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
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
SA Reso—City Loan Agmt—Line 47
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-05
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).
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
SA Reso—City Loan Agmt—Line 47
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-05
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—Line 47
Jan.5 2017
Page 5 of 6
I
RESOLUTION NO. 2017-05
PASSED AND ADOPTED by the, Successor Agency to the Redevelopment
Agency of the City of Huntington Beach at a meeting thereof held on the 17 th day of
January , 2017.
rp'Mw rson
REVIEWE AND APPROVED: 1NITI 'fLD-AND A VED:
c ivj Director Deputy Executive Director
APPROVED AS
oard Counsel
SA Reso—City Loan Agmt—Line 47
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-05
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
ATTACHMENT #4
RESOLUTION NO. 2017-06
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 RELOCATION COSTS PAID TO WIND AND SEA SURF SHOP 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.Xl 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—Line 46
Jan.5 2017
Page 1 of 6
RESOLUTION NO. 2017-06
(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—Line 46
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-06
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund relocation of the Wind and Sea Surf Shop. This City
Loan pertains to relocation expenses incurred to relocate tenants occupying the Wind and Sea
Surf Shop pursuant to State law. This was required as part of the land purchase for The Strand _
mixed-use development; 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 years of origination of the City
Loan was 1996. 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 $68,800; 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
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
SA Reso—City Loan Agmt—Line 46
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-06
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).
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
SA Reso—City Loan Agmt—Line 46
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-06
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—Line 46
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-06
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.
AL
r n
REVIEWE AND APPROVED: INITIATED AND PROVED:
tOAM it,
ecut ve Director Deputy Executive Director
APPROVED AS RM:
B and Counsel
SA Reso—City Loan Agmt-Line 46
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-06
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 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 oRThe Successor Agency to
the Redevelopment Agency of the
City of Huntington Beach, California
ATTACHMENT #5
RESOLUTION NO. 2017-07
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 ACQUISITION COSTS ASSOCIATED WITH THE SECOND BLOCK
ALLEY AND STREET IMPROVEMENT PROJECT 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.X 1 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—Line 45
Jan.5 2017
Page 1 of 6
RESOLUTION NO. 2017-07
(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—Line 45
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-07
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund property acquisition costs associated with the Second
Block alley and street improvement project. This City Loan pertains to the purchase by the
former Redevelopment Agency of a strip of land, ten feet wide, between two buildings for
pedestrian access between Main Street and 5th Street. The "alley" way developed was part of an
Owner Participation Agreement with Abdelmudi. As part of the Owner Participation
Agreement, Abdelmudi had to develop and maintain this strip of land, but the land is owned by
the Successor Agency. The land was purchased with City-advanced funds; 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 years of origination of the City
Loan was 1988. 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 $231,441; 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
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
SA Reso—City Loan Agmt—Line 45
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-07
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).
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
SA Reso—City Loan Agmt-Line 45
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-07
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—Line 45
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-07
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
REVIEWEP AND APPROVED: INITI TED AN A` PPR VED:
l
cutiv Director Deputy Executive Director
APPROVED AS O
oard Counsel
SA Reso—City Loan Agmt—Line 45
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-07
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 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
ATTACHMENT #6
RESOLUTION NO. 2017-08
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 RELOCATION, PROPERTY ACQUISITION, AND OTHER PROJECT
COSTS ASSOCIATED WITH THE THIRD BLOCK WEST
CONDOMINIUM/RETAIL/OFFICE PROJECT IN THE MAIN-PIER
REDEVELOPMENT PROJECT AREA 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.X1 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
SA Reso—City Loan Agmt—Line 44
Jan.5 2017
Page 1 of 6
RESOLUTION NO. 2017-08
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
(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
I
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
SA Reso—City Loan Agmt—Line 44
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-08
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
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund relocation, property acquisition, and other project costs
associated with the Third Block West Condominium/Retail/Office project in the Main-Pier
Project Area. This City Loan pertains to the purchase of land and expenses to relocate tenants
occupying the acquired property pursuant to State law. The former Redevelopment Agency,
utilizing City-advanced funds, assembled land for a mixed-use development — Plaza Almaria;
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 years of origination of the City
Loan was 1996. 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 $11,771,703; 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
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
SA Reso—City Loan Agmt—Line 44
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-08
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).
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
SA Reso—City Loan Agmt—Line 44
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-08
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—Line 44
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-08
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.
Ai
k"L "*
Chairperson
REVIEWW AND APPROVED: INITI 'ND APPROVED:
ecidive Director eputy Ex ive Director
IYX
APPROVED AS
oard Counsel
SA Reso—City Loan Agmt—Line 44
Jan.5 2017
Page 6 of 6
- Successor Agency
Res. No. 2017-08
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
7i62
Clerk of The Successor Agency to
the Redevelopment Agency of the
City of Huntington Beach, California
ATTACHMENT #7
i
RESOLUTION NO. 2017-09
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 ACQUISITION OF LAND WITHIN THE MAIN-PIER PROJECT AREA
FOR PHASE II DEVELOPMENT PROJECTS 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.Xl 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—Line 42
Jan.5 2017
Page 1 of 6 j
I
i
RESOLUTION NO. 2017-09
(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—Line 42
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-09
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund the acquisition of land within the Main-Pier Project Area
for Phase II development projects. This City Loan pertains to the purchase of land for
assemblage of a 4-acre site for a mixed-use project called The Strand. The land was purchased
by the former Redevelopment Agency with money advanced by the City, and conveyed to CIM
Group pursuant to a Disposition and Development Agreement. The Strand has been completed
as required under the Disposition and Development Agreement; 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 1988. 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 $3,453,128; 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
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),
SA Reso—City Loan Agmt—Line 42
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-09
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).
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);
SA Reso—City Loan Agmt—Line 42
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-09
(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—Line 42
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-09
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. •
Chairperson
REVIEW D AND APPROVED: INITIATED AN ROVED:
Jql-xeculive Director Deputy ive Director
APPROVED FORM:
Board Counsel
SA Reso—City Loan Agmt—Line 42
Jan.5 2017
Page 6 of 6
i
i
Successor Agency
Res. No. 2017-09
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
ATTAC H M E N T #8
RESOLUTION NO. 2017-10
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 ACQUISITION OF LAND WITHIN THE MAIN-PIER PROJECT AREA
TO IMPLEMENT THE CONSTRUCTION OF PARKING FACILITIES WITHIN THE
DOWNTOWN MAIN-PIER AREA 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
SA Reso—City Loan Agmt—Line 43
Jan.5 2017
Page 1of6
RESOLUTION NO. 2017-10
"oversight board." The oversight board has been established for the Successor Agency
(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
SA Reso—City Loan Agmt—Line 43
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-10
as appropriate and necessary, and provided funds to carry out the Constituent Projects; and
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund the acquisition of land within the Main-Pier Project Area
to implement the construction of parking facilities within the Downtown Main-Pier area. This
City Loan pertains to the purchase of land for construction of a public parking structure. The
parking structure was built with 1989 Certificates of Participation. The former Redevelopment
Agency was required to purchase the land with money advanced from the City, and the
Certificates of Participation paid for construction expenses; 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 years of origination of the City
Loan were 1988 and 1990. 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 $2,458,700; 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
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
SA Reso—City Loan Agmt—Line 43
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-10
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).
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
SA Reso—City Loan Agmt—Line 43
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-10
other applicable loan repayment terns 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—Line 43
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-10
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. e
airpJrson
REVIEWE AND APPROVED: MTIAT ND VED:
4111k �,.704X-,
ec tiv Director Deputy Executive Director
APPROVED A O .
oard Couns
SA Reso—City Loan Agmt—Line 43
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-10
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, J 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
44M
Clerk of The Successor Agency to
the Redevelopment Agency of the
City of Huntington Beach, California
ATTAC H M E N T #9
Cam- icy
RESOLUTION NO. 2017-11
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 LAND AND RIGHT-OF-WAY ACQUISITION COSTS CONNECTED
WITH THE GOTHARD-HOOVER EXTENSION PROJECT AND DEVELOPMENT OF
A PUBLIC STORAGE FACILITY IN THE HUNTINGTON BEACH
REDEVELOPMENT PROJECT 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.X1 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
SA Reso—City Loan Agmt—Line 41
Jan.5 2017
Page 1 of 6
RESOLUTION NO. 2017-11
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
(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
SA Reso—City Loan Agmt—Line 41
Jan.5 2017
Page 2of6
RESOLUTION NO. 2017-1 j
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
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, the City made a loan ("City Loan") to the
former Redevelopment Agency to fund land and right-of-way acquisition costs connected with
the Gothard-Hoover Extension project and development of a public storage facility in the
Huntington Beach Redevelopment Project. This City Loan pertains to the purchase of land by
the former Redevelopment Agency with money advanced by the City for three parcels of
property. The former Redevelopment Agency entered into a Disposition and Development
Agreement for development of the site; 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 1987. 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 $2,898,752; 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
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
SA Reso—City Loan Agmt—Line 41
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-11
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).
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
SA Reso—City Loan Agmt—Line 41
Jan.5 2017
Page 4 of 6
RESOLUTION NO. 2017-1J
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—Line 41
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-11
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.
Chairperson
REVIEWE AND APPROVED: INITIATE AND ROVED:
cuti Director Deputy Executiq irector
APPROVED A O M.
oard Counsel
SA Reso—City Loan Agmt—Line 41
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-11
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
ATTACHMENT # 10
RESOLUTION NO. 2017-12
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 FY 2004-05 CAPITAL PROJECTS 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.Xl 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
(hereinafter referred to as the "Oversight Board") and all seven (7) members have been
SA Reso—City Loan Agrat—FY 04-05 Capital Projects
Jan.5 2017
Page 1 of 6
RESOLUTION NO. 2017-12
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—FY 04-05 Capital Projects
Jan.5 2017
Page 2 of 6
I
RESOLUTION NO. 2017-12
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, the City made a loan ("City Loan") to the
former Redevelopment Agency for the funding of various capital projects in FY 2004/05 in the
SCRP Area; 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 2005. 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 $283,211; 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
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
SA Reso—City Loan Agmt—FY 04-05 Capital Projects
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-12
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).
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
SA Reso—City Loan Agmt—FY 04-05 Capital Projects
Jan.5 2017
Page 4of6
RESOLUTION NO. 2017-12
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—FY 04-05 Capital Projects
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-12
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.
Chairperson
REVIEWE AND :PROVED: INITIATED AND 7VED:
E cutivk Director Deputy Executive erector
APPROVED A
z 7
oard Counsel
SA Reso—City Loan Agmt—FY 04-05 Capital Projects
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-12
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
ATTACHMENT # 11
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.X1 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 Agnt-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.
Chairperson
REVIEWED AND APPROVED: INITIATED AND VED:
l
ecuti e Director Deputy Executive Director
APPROVED O 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
ATTACHMENT # 12
RESOLUTION NO. 2017-14
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 BONDS 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
(hereinafter referred to as the "Oversight Board") and all seven (7) members have been
SA Reso—City Loan Agmt-Emerald Cove Bonds
Jan.5 2017
Page 1 of 6
i
RESOLUTION NO. 2017-14
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 Bonds
Jan.5 2017
Page 2 of 6
RESOLUTION NO. 2017-14
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, the City made a loan ("City Loan") to the
former Redevelopment Agency regarding the Emerald Cove 2010 Series A Lease Revenue
Refunding Bond. In 1984, the City's Park Acquisition & Development Fund advanced
$1,740,834 to the former Redevelopment Agency to purchase the Emerald Cove Property. 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 issuance of COPS by the City's Public Financing Authority, the
City retained possession of the Emerald Cove Property. In May 2009, the former
Redevelopment Agency purchased the Emerald Cove Senior Apartments for the sum of
$8,483,931, which included a pledge of tax increment to the City related to the debt service on
the outstanding bonded indebtedness of the City-issued COPS in the amount $5,170,931. A
Promissory Note from the former Redevelopment Agency to the City for the amount of the
outstanding bonded debt was issued on May 18, 2009, with annual payments matching those of
the outstanding debt service due on the City-issued COPS. Tax increment was pledged as
security for the payments due under the Promissory Note per Section 203 of the Cooperation
Agreement. The sale of Emerald Cove to Jamboree Housing Corporation-Acquisitions, LLC was
approved in September 2009 with the approval of an Affordable Housing Agreement between
the former Redevelopment Agency and the developer. In June 2010, the former Redevelopment
Agency approved an $8 million loan to the developer evidenced by a Residual Receipts
Promissory Note; 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
SA Reso—City Loan Agmt-Emerald Cove Bonds
Jan.5 2017
Page 3 of 6
RESOLUTION NO. 2017-14
the City Loan, at a simple interest rate of 3 percent (3%). The year of origination of the City
Loan was 2010. 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 $3,649,834; 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
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 A(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, THERE Agency FORE the Successor A to the Redevelopment Agency of the City of
Y
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
SA Reso—City Loan Agmt-Emerald Cove Bonds
Jan.5 2017
Page 4of6
RESOLUTION NO. 2017-14
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).
4. The Executive Director, or designee, of the Successor Agency is hereby
authorized and directed (1) 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.
SA Reso—City Loan Agnt-Emerald Cove Bonds
Jan.5 2017
Page 5 of 6
RESOLUTION NO. 2017-14
8. This Resolution shall take effect upon the date of its adoption.
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.
RAff
hairperson
REVIEWEP AND APPROVED: 1NITI 9B�ZAINDROVED:
e ut' e Director Deputy Execu ive Director
APPROVED AS
and Counsel
SA Reso—City Loan Agmt-Emerald Cove Bonds
Jan.5 2017
Page 6 of 6
Successor Agency
Res. No. 2017-14
i
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