HomeMy WebLinkAboutCommunity Redevelopment Act of California - Urban Renewal - t
8 > ION`
May, 10, 1950
Jack Greer
630 Geneva Street
Huntington Beach, Califo
Dear Mr. Greer,
The enclosed ditto copy of the Community
Redevelopment Act, embodying all amendments to date,
with a digest and chart, which further clarify the
procedure to be followed toward establishing a re-
development project.
Very truly yours'
J. .. enr G san,
City Clerk.
` �To
cc: Langenbeck
LeBard
Seabridge
Talbert
May 10, 1950
Chris King
617 -- llth Street
Huntington .Beach, Calif.
Daar Mr. King, ,
The enclosed ditto copy of the Community
Redevelopment Act, embodying all amendments to date,
with a digest and chart, which Further clarify the
procedure to be followed toward establishing a re-
development project.
Very truly yours,
J. . Henri3ksen
City Clerk.
JLH:bd
Encl.
. P*So: The City Council at a regularly held meeting on
May 2, 1950 appointed you as a. member of tha
Redevelopment Agency for a term of four (4) years.
CC. R.PoYAandic 4 yrs.
Hinshaw, 3 yrs o
Sayer 2 yrso
C, Terry 1 yr.
RAY H`OVERACKER ' ` 412 Olive Avenue
City Attorney P.O. Box 269
f Lexington 6-3030
INGTp��
RFORAT F
CITY OF N BEACH
NTY G�\\
November 7, 1949
Honorable Mayor and City Council
of the City of Huntington Beach
Huntington Beach, California
Re: 14th Street and Main Street area
Community Redevelopment Act
Gentlemen;
Sometime ago the City Council referred to me the
problem of rehabilitating the 14th Street area and particularly
the lots on the southerly corner of 14th Street and Main Street®
Of this property, lots 1, 2 and 3 in block 813, stands in the
name of M. L. McKeever, P 0 Box 1043, San Francisco. While in
San Francisco I spent almost a day trying to find the residence
address of Mr. McKeever, but was unable to do so. After I .
returned home, more or less by accident, I learned that the law
" firm of Entenza & Gramer, 119 South Beverly Drive, Beverly Hills,
California, owned a one third undivided interest in these lots.
I discussed the matter Friday afternoon with the junior member
of the firm, Mrs . Gramer, on the telephone and she stated that
she did not know the present condition of the property and was
willing to cooperate with the City. It is gust possible the
City might acquire the one third interest for a nominal sum, and
by bringing a, partition action force a sale of the property.
I have also given considerable study to the redevelop-
ment act as applied to this particular area.
I find that some of the property in this area, belongs
to the City of Huntington Beach in fee and that the City and
State both have tax deeds to other property, some of which is
subject to sale by the County to the City .
I went over this area yesterday with Councilman Lang«-
enbeck and I desire to suggest to the City a four point program
as follows: i
Mayor and Cit. ;ouncil - 2 11-7--49
1 . Clear and rehabilitate the property owned by the
City. The City ownes in fee lots 5, 6, 120 13, 14, 15, 19 and
20 in block 913; lots 21 and 22 in block 911. The City also owns
a one half undivided interest in lots 6 and 7 in block 813.
2. Acquire the Countyts interest in present property
deeded to both the State and the City for non-payment of taxes.
These lots include lots 4, 5, 8. and 12 in block 813; and lots
31 and 32 in block 911. The list o'f property subject to sale
includes approximately 23 lots in the City. Probably the County
would desire to sell all of the lots in one sale. The City would
have to take these lots ' as ist and clear the title.
3. Secure the cooperation of the owners of property.
Undoubtedly the owners of property in this area would be willing
to cooperate with the City or be willing to sell to the City at
a cost price that would allow the City to sell the property for
enough to pay the cost of filling the sumps and clearing the prop-
erty.
4. Proceed under the comnunity redevelopment act.
This act provides briefly that an area. of not less than one block
may be rehabilitated. A tentative plan is prepared by the plan-
ning commission, approved by the City Council; a rehabilitation
commission composed of five persons is appointed to act on the
basis of the tentative plan and prepare a final plan, which when
approved by the City Council, is put into effect by the rehab-
ilitation commission..
Both Federal and State funds are available to assist
in such projects .
Very r ly yours,
RAY H. OVERACKER
City Attorney
RHO: eo
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INSTRUCTIONS—PERSON ORIGINATING MEMO WILL REMOVE' DUPLICATE (YELLOW)
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MAININGAN SET. AFTER REPLY IS WRITTEN, SNAP OUT CARBON$; RETAIN THE TRIPLICATE
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COPY AND FORWARD ORIGINAL (WHITE) AND TRIPLICATE (PINK) WITH CARBONS RE.
MAINING IN SET. AFTER REPLY IS WRITTEN, SNAP OUT CARBONS; RETAIN THE TRIPLICATE
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'To v DATE '
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PLEASE REPLY- HERE
-To DATE
_ SIGNEU
INSTRUCTIONS—PERSON ORIGINATING. MEMO WILL` REMOVE DUPLICATE (YELLOW)
COPY AND FORWARD ORIGINAL (WHITE) AND TRIPLICATE (PINK) WITH CARBONS RE-
MAINING IN SET. AFTER REPLY IS WRITTEN, SNAP OUT CARBONS; RETAIN THE TRIPLICATE
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SIGNED-
PLEASE REPLY 'HERE
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SIGNIED
INSTRUCTIONS-PERSON ORIGINATING MEMO WILL REMOVE DUPLICATE (YELLOW)-
COPY AND FORWARD ORIGINAL (WHITE) AND-TRIPLICATE (PINK) WITH CARBONS RE•
MAINING IN SET. AFTER REPLY IS WRITTEN, SNAP OUT'CARBONS; RETAIN THE TRIPLICATE
AND RETURN THE ORIGINAL TO THE PERSON ORIGINATING MEMO. FORM 5.0.4 ® -
CTTr OF HUNTINGTON BEACH
California- '
November 7, 1949
Honorable Mayor and ,City Council
of the City of Huntington Beach
Huntington Beach, California
Re: 14th Street and Main Street area.
Community -Redevelopment Act
Gentlemen:
Sometime ago the City Council referred to me the
problem of rehabilitating the 14th Street Area and particularly
the lots on the southerly corner of 14th Street and Main Street.
Of this property, lots 1, 2 and 3 in block 813, -stands in the
name of M. L. McKeever, F 0 Box 1043, San Francisco. While in
San 'Pranci.sco I spent almost a day trying to find the residence
address of Mr. McKeever, but was unable to do so. After I
returned home, more or less by accident, I learned that the law
firm of Fntenza & Cramer, 119 south Beverly Drive,, Beverly Hills,
California., owned a_ one third undivided' interest in these lots.
discussed the matter Friday afternoon with the junior member
of.. ,,the firm, Mrs..... gr:.amer, on the telephone and she stated that
shc;: did not know 'the present condition- ofthe property and was
w1l3ing to cooperate with the City. It is just . possible the
City might acquire the one third Interest for a nominal sum, and
by bringing a partition action force a sale of the property.
I have also given considerable, study to the redevelop-
ment act as applied to this particular area.
I find that some. of the property In this area belongs
to the City of Huntington Beach In fee and that the City and
State both have tax deeds to other, property, some of vdilch is
subject to sale by the .County to the City.
I went over this area yesterday with Councilman
Langenbeck and I desire to suggest to the City a, f9ur point
program as follows.
1. Clear and rehabilitate the propsrt maned, by the
City. The City owns in .gee lots 5o b', 12, 13, 1 , 15, 19 and
20 in block 913;, lots 21 and 22 in block 9l1. 'The City also owns ;--
a one half undivided Interest in lots b and 7 in block 813.
°V
Mayor and City Council 11-7-49
2. Acquire the County's interest in present property
deeded to both the State and the Pity for non-payment of taxes.
These lots include lots 4v 5, 8 and 12 in block 613, and lots
31 and 32 in.block 911 . The list of property subject to sale
includes approximately 23 lots in the City . Probably the County
would desire to sell all of the lots in one sale. The City would
have to take these lots 'as is' and clear the title.
3. Secure the cooperation of the owners of property.
Undoubtedly the owners of property in this area would be willing
to cooperate with the City car be willing to sell to the City at
a cost price that would sallow the City to sell the property for
enough to pay the cost of filling the sumps and clearing the
property.
4.. Proceed under ..the community redevelop"pt, act.
This act provides briefly that an area, of not less than .one block
may be rehabilitated. A tentative plan is prepared by the plan-
ning commissiohl approved by the City Council; a rehabilitation
commission composed of five persons is appointed to scat on the
basis of the tentative plan and prepare a final plan, which when
approved by the City Council, is put into effect by the rehab-
ilitation commission.
Roth Federal and State funds are available to assist
in ,such projects.
Very truly yours,
Ray R. Overacker ( s )
RAY H, OVIMACM
City Attorney
RHO«eo
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r . .
COMMUNITY REDEVELOPMENT ACT
of
CALIFORNIA
(As amehded - 1949)
CITY OF RED014DO BEACH, CALIFORNIA
Charles H. Wortham, Mayor
C I T Y C O U N C I L
William F. Czulegar Chester Dailey
George Green Richard A. Hardie
Laurence R. Henderson
Evan E. Peterson, City Manager
P 1, A N N I N G C 0 M 14 1 S S I 0 N
James P. Irons, Chairman "
Mary M. Eich, Secretary Harry. W. Olafsen
Hugh P. Doherty David Harris
Frank A. Rivers Robert 1i. Dourson
Gordon I-Mitnall, Planning Consultant
CHAPTER 1326
An act relating to land use and development, including particularly the
rehabilitation and redevelopment of blighted areas in urban and
suburban communities in this State, and providing ways and means.therefor,
and for assisting public and private enterprise ,in the attainment of the ,
objectives and carrying out the purposes of this act:
The people of the State of California do enact as follows:
Article 1. Short Title
Section 1. This act shall be known and may be cited as the "Community
Redevelopment Act."
Article 2. Legislative Finding, Policy of State
and Purpose of Act
Sec. 2. It is hereby found and declared that there exist in many
communities in this State blighted areas which constitute either social or
economic liabilities, or both, requiring redevelopment in the interest of
the health, safety and general welfare of the people of the communities in
which they exist and of the people of this State generally. These blighted
areas are characterized by one or more of the .following conditions:
(a) The existence of buildings and structures, either used or intended
to be used for living, comaercial, industrial or other purposes, or any
combination of such uses, which by reason of defective design and character
of physical construction, faulty interior arrangement and exterior spacing,
high density of population and overcrowding, inadequate provision for venti-
lation, light, sanitation, open spaces and recreation facilities, age,
obsolescence, deterioration, dilapidation, mixed character or shifting of
uses to which they are put, or any combination of such factors and charac-
teristics, are unfit or unsafe to occupy for residential., commercial, in-
dustrial or other purposes and are conducive to ill health, transmission of
disease, infant mortality, juvenile delinquency and crime.
(b) An economic dislocation, deterioration or disuse, as a result of
faulty planning, the subdividing and the sale of lots of irregular form
and shape and inadequate size for proper usefulness and development, the
laying out of lots in disregard of the contours and other physical charac-
teristics of the ground and surrounding conditions, or the existence of
inadequate streets, open spaces and utilities, or of lots or other areas
which are subject to being submerged by water.
(c) A prevalence of depreciated values, impaired investments and social
and economic maladjustment to such an extent that there exists a reduced
capacity to pay taxes and consequent inadequacy of tax -receipts in relation
to the cost of public services rendered.
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(d) A growing and in some instances a total lack of proper uti.lilization
of areas, resulting in a stagnant and unproductive condition of land poten-
tially useful and valuable for contributing to an serving the public health,
safety and welfare; and in other areas a loss of population and reduction
of useful utilization of the area, resulting in the further deterioration
thereof and in added costs to the taxpayer supporting governmental entities
for the creation o{' new public facilities and services elsewhere.
It Is furl-her found and declared that the existence of blighted areas
characterized by any or all of such conditions, separately or collectively,
constitutes a serious and growing menace which is hereby condemned as injuri-
ous aid inimical to the public health, safety and welfare of the people of
the co-munities in which they exist and of the people, of t1je State generally;
that such areas present difficulties and handicaps which are beyond remedy
and coat,rol solely by regulatory processes in the exercise of the police
power; that they contribute substantially and increasingly to the problems
of, and necessitate excessive and disproportionate eXpenditures for, crime
prevention, correction, prosecution and punishment, the treatment of juvenile
delinquency, the preservation of the public health and safety and the main-
taining of adequate police, fire and accident protection and other public
services and facilities; that this menace is becoming increasingly direct
and substantial in its significance and effect; that the benefits which will
result from the remedying of these conditions and the redevelopment of these
areas of blight will accrue to all the inhabitants and property owners of the
communities iir which they exist.
It is further found and declared that such conditions of blight tend to
further obsolescence, deterioration and disuse because of the lack of incen-
tive to the individual landowner and his inability to improve, modernize or
rehabilitate his own particular property while the condition of the neigh-
boring properties remains unchanged; that as a consequence the process of
deterioration of a blighted area frequently cannot be halted or corrected
except by redeveloping the entire .area, or substantial portions thereof;
that such conditions of blight are chiefly found in areas which have been
subdivided into small parcels, that in most instances the lands are held
in divided and widely scattered ownerships, frequently under defective titles,
that in many such instances the private assembly of the lands in blighted
areas for puri.oses of redevelopment is so difficult and costly that it is
uneconomic and as a practical matter impossible for individual owners inde-
pendently or collectively to undertake to remedy such conditions because of
lack of the legal power necessary for, and the excessive costs involved in,
the private acquisition of the real property of the area; that the remedying
of s,,uch conditions may require the public acquisition at fair prices of
adequate areas, the clearance of the areas thro,igh demolition of existing
obsolete, inadequate, unsafe and insanitary buildings and the redevelopment
of the areas suffering from such conditions under proper supervision, with
appropriate planning, and continuing land use and construction policies.
For these reasons it is hereby declared to be the nclicy of this State
to ;protect and promote the sound development and redevelopment of blighted
areas within this State and the general welfare of the inhabitants of the
communities in which they exist by remedying such injurious conditions through
the employment of all means appropriate for that purpose; that whenever the
.redevelopment of blighted areas cannot be acccra fished by private enterprise
alone, without public participation and assistance in the acquisition of
land, in ;Manning and in the financing of land assembly, in the work of
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clearance and in the making of improvements necessary therefor, it is in the
public interest to employ the power of eminent domain, to advance or expend
public funds for these purposes and to provide a means whereby the blighted
areas within this State may be redeveloped or rehabilitated; that the rede-
velopment of such blighted areas and the provision for appropriate contin-
uing land use and construction policies therein, constitute public uses and
purposes for which i;ublic money may be advanced or expended and private
property acquired, and are governmental functions of State concern in the
interest of the health, safety and welfare of the people of the State gener-
ally and particularly of the people of the communities of the State in which
such areas exist; that it is in the public interest that work on such pro-
jects be commenced as soon as possible in order to create postwar employment;
and that the necessity in the public interest for the provisions hereinafter
enacted is hereby declared to be a matter of legislative determination.
Sec. 2.1. It is hereby found and declared that blighted areas shall in-
clude housing areas constructed as wartime housing projects, and it is further
found and declared th..t such areas are characterized by one or more of the
conditions enumerated in Section 2 of this act.
Article 3. General Provisions and Definitions
Sec. 3. The following definitions and general provisions govern the
construction of this act.
Sec. 4. "Agency" means a redevelopment agency created by this act.
Sec. 5. "Redevelopment area" means an area of a community which the legis-
lative body thereof finds is a blighted area whose redevelopment is necessary
to effectuate the ,�ublic purposes declared in this act. A redevelopment area
need not be restricted to, or consist entirely of, buildings, improvements,
or lands which of themselves are detrimental or inimical to the public health,
safety or welfare, but may consist of an area in which such conditions pre-
dominate and injuriously affect the entire area. A redevelopment area may
therefore include; lands, buildings or improvements which of themselves are
not detrimental to the public health, safety or welfare, but whose inclusion
is found necessary for the effective redevelopment of the area of which they
are a part.
Sec. 6. "Bonds of the agency" means any bonds, notes, interim certifi-
cates, debentures or other obligations issued by an agency pursuant to Article
13 of this act.
Sec. 7. "Corununity'l means a city, county, or city and county.
Sec. g. "Federal Government" means the United States of America, or any
agency or instrumentality, corporate or otherwise, of the united States of
America.
Sec. 9. "Legislative body" means the city council, board of supervisors
or other legislative body of a commaunity.
Sec. 10. "Obligee of the agency" or "obligee" shall include; any bondholder,
trustee or trustees for any bondholder, or lessor demising to the agency
property used in connection with a project area, or any assignee or assignees
of such lessor's interest or any part thereof, and the Federal Government
when it is party to any contract with the agency.
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Sec. 11. "Planning commission" means a planning commission established
under any State law or created by or pursuant to the charter of the community.
Sec. 12. "Project area" means all or a portion of a redevelopment area
comprising either (1) at least one block bounded on all sides by public high-
ways as shown on the official map of the community, or (2) where no official
map exists, an area of not less than 90,000 square feet, including any high-
ways, streets, or alleys.
Sec. 13. "Real property" means lands, including lands under water and
waterfront property, buildings, structures, fixtures, and improvements thereon,
any and all property of any nature appurtenant thereto or used in connection
therewith, and every estate, interest, privilege, easement, franchise and
right, legal or equitable, therein, including rights of way, terms for years
and liens, charges or encumbrances by way of judgment, mortgage or otherwise
and the indebtedness secured by such liens.
Sec. 14. "Redevelopment" means the planning; development, replanning,
redesign, clearance, reconstruction or rehabilitation, or any combination
of these, of a redevelopment area or part thereof, and the provision of such
residential, commercial, industrial, public or other structures or spaces
as may be appropriate or necessary in the interest of the general welfare, -
inclu0.ing recreational and other facilities incidental or appurtenant thereto.
The.term does not exclude the continuance of existing buildings Cr uses whose
demolition and rebuilding or change of use are not deemed essential to the
redevelopment and rehabilitation of the area. The term includes provision
for open space types of use, such as streets and other rublic grounds and
space around buildings, as well as buildings, structures and improvements,
public or private, and improvements of recreation areas, ;public or private,
and other public -rounds. The term also includes the replanning or redesign
or original development of undeveloped areas which by reason of defective
or inadequate street layout, faulty lot layout in relation to size, shape,
accessibility, or usefulness, or for other causes are stagnant or not pro-
perly utilized or which, because of widely scattered ownership, or tax de-
linquency, or other reasons, require replanning and land assembly for re-
clamation or development in the interest of the general welfare.
Sec. 15. "Redevelopment project" means any work or undertaking of an
agency pursuant to this act.
Sec. 16. "State Government" means the State of California, or any agency
or instrumentality, corporate or otherwise, thereof.
Sec. 17. "State public body" means the State, or any city, city and
county, county,district, authority, or any other subdivision or public body
of the-State.
Article 4. Redevelopment Agencies
Sec. 18. There is hereby created in each community a public body, cor-
porate and politic, to be known as the redevelopment agency of the community.
Sec. 19. The agency of any community shall not transact any business or
exercise any powers under this act unless and until the legislative body of
the community shall by resolution adopted by a majority vote declared at any
time hereafter that there is need for a redevelopment agency to function in
such community.
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Sec. 20. If any suit, action or proceeding involving the validity or
enforcement of, or relating to, any contract by or on behalf of an agency,
the agency shall be conclusively deemed to have become established and
Authorized to transact business and exercise its powers upon proof of the
adoption of a resolution by the legislative body declaring the'need for the
redevelopment agency to function.
Sec. 21. When the legislative body of a community first adopts a resolution
as provided for in Section lq of this act, the mayor of a city or of a city
and county or the chairman of the board of supervisors of a county, with the
approval of the legislative body, shall appoint five resident electors of the
community as members of the agency. No member of the agency may be an
elective officer or an employee of the community, but he may be a member,
commissioner or employee of any other agency or authority of, or created for,
the community notwithstanding any other provision of law. The powers of each
agency shall be vested in the members thereof then in office. Members shall
receive their actual and necessary expenses, including traveling expenses
incurred in theAddischarge of their duties and may receive such other compen-
sation as the legislative body may prescribe or authorize.
Sec. 22. Three of the members who are first appointed shall be designated
to serve for terms of one, two, and three years respectively, from the date
of their appointments, and two shall be designated to serve for terms of four
years from the date of their appointments. Thereafter, members shall be ap-
pointed as aforesaid for a term of office of four years, except that all
vacancies occurring during a term shall be filled for the unexpired term. A
member. shall hold office until his successor has been appointed and has
qualified.
The appointing officer shall designate which of the members of the agency
appointed shall be the first chairman, but when the office of the chairman
of the agency becomes vacant thereafter, the agency shall elect a chairman
from among its members. The term of office as chairman of the agency, unless
otherwise prescribed by the legislative body of the community, shall be for
the calendar year, or for that portion thereof remaining after each such
chairman is designated or elected.
Sec. 23. For inefficiency or Neglect of duty or misconduct in office, a
member of an agency may be removed by the appointing officer, but the member
may be removed only after he shall. have been given a copy of the charges at
least ten days prior to a public nearing thereon and has had an opportunity
to be heard in person or by counsel. In the event of the removal of any
commissioner, a record of the proceedings, together with the charges and
findings thereon, shall be filed in the office of the clerk of the community.
Sec. 24. No officer or employee of the community or of the agency who in
the course of his duties is rewired to participate in the formulation of
plans or policies for -the redevelopment of a project area, or to approve
such plans or 1_•olicies, shall aciaire any interest in any property included
within a project area within the corrm-iunity. If any such officer or employee
owns or has any financial interest, direct or indirect, in any property in-
cluded within such a project area he shall immediately disclose, in writing,
such interest to the agency and the legislative body of the community and
such disclosure sho.11 be entered on the minutes of the agency and of the
legislative body. Failure to so disclose such interest shall constitute mis-
conduct in office. No agency shall acquire from any of.its members or officers
any property, or interest therein, except through eminent domain proceedings.
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.6. '+aijc; 1 thu agency created for any community becomes authorized to
transact business and exercise its powers, the legislative body of the com-
munity may at that time, and from time to time thereafter, appropriate such
amounts to the agency out of any moneys not appropriated to some other pur-
pose, as it deems necessary, for the administrative expenses and overhead of
'the agency. The moneys so appropriated may be paid to the agency as a grant
to defray said expenses and overhead, or as a loan to be repaid upon such
terms and conditions as the legislative body of the community may provide.
Sec. 26. Each agency transacting any business and exercising any powers
under this act shall annually submit to the legislative body of the community
a proposed budget of its administrative expenses.
The legislative body may adopt the annual budget for the administrative
expenses of the agency in such mounts as it deems necessary and may provide
such conditions and restrictions upon the expenditure or encumbrance of the
funds appropriated pursuant to said budget as it deems advisable.
The funds appropriated by the legislative body for administrative expenses
shall be Dept in the treasury of the conmrunity in a special fund to be known
as the Community Redevelopment Agency Administrative Fund, and funds shall be
drawn therefrom to meet the administrative expenses of the agency in sub-
stantially the same manner as funds are drawn by other agencies and departments
of the community subject to budgetary control.
The funds appropriated by the legislative body of the community to the
Community Redevelopment Agency Administrative Fund are funds granted by the
community to defray the administrative expenses of the agency which is per-
forming a public function of the community and the grant of funds in this
manner is not to be construed as making the agency a department of the com-
munity or as placing the officers, agents, counsel and employees under civil
service of the community.
Sec. 27. Each such agency shall file with the legislative body a detailed
report of all its transactions, including a statement of all revenues and
expenditures, at monthly, quarterly, or annual intervals as the legislative
body may prescribe.
Sec. 28. At any time after two years after adopting a resolution declaring
that there is need for an agency to function in a community, the legislative
body thereof, if such agency shill not theretofore have redeveloped or acquired
land for, or commenced the redevelopment of, a project, or entered into any
contracts for redevelopment, may by resolution declare that there is no
further need for such agency in the community. Thereupon the offices of the
members of the agency shall be vacated and the capacity of the; agency to
transact business or exercise any powers shall be suspended and shall remain
suspended until the legislative body thereafter adopts a resolution declaring
the need for the agency to function.
Article 5. Powers of Redevelopment Agency
Sec. 29. Each redevelopment agency shall constitute a public body, cor-
porate and politic, exercising public and essential governmental functions,
and, subject to the limitations imposed by this act, shall have the following
powers in addition to the others herein granted:
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(a) To sue and be sued; to have a seal; to make and execute contracts
and other instruments necessary or convenient to the exercise of its powers.
(b) To make, and from time to time amend and repeal by-laws, rules and
regulations, not inconsistent with this act to carry into effect the powers
and purposes hereof.
(c) To select, appoint and employ such officers, agents, counsel and .
employees, permanent and temporary, as it may require, and determine their
qualifications, duties and compensation, subject only to the conditions and
restrictions imposed by the legislative body on the expenditure or encum-
brance of the budgetary funds appropriated to the Community R,edevelopmont ,
Agency Administrative Fund as provided by Section 26.
(d.) Within the redevelopment area or for purposes of redevelopment: To
purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise
or otherwise, any real or personal propertyy, or any interest therein, together
with any improvements thereon; to acquire 'by the exercise of the power of
eminent domain any real property; to clear any and all buildings, structures
or other improvements from any real iro1)erty so acquired; to sell, lease,
exchange, su:,divide, transfer, assign, pledge, encumber (by mortgage, deed
of trust or otherwise) , or otherwise dispose of any real or personal property
or any interest therein; to insure or provide for the insurance of any real
or per,-zonal property or operations of the agency against risks or hazards;
and to rent, ma.int:..in, manage, operate, repair, and clear, such real property.
Amy such lease or sale may be nude without public bidding but only after a
public hearing by the agency upon the proposed lease or sale and the provisions
thereof.
(e) To develop as a building site or sites any real property owned or
acquired by it, and. in this connection to cause streets and highways to be
laid out and graded, and pavements or other road surfacing, sidewalks and
curbs, and public utilities of every !:ind to be constructed and installed.
(f) To prepare fromtime to time, pl::.ns for the improvement and rehabili-
tation of blighted areas.
(g) To invest any funds held in reserves or sinking funds or any funds
not required for ir-rediate disbursement, in property or securities in which
savings banks mal, legally invest funds subject to their control; to purchase
its bcnds at a pric, not _,lose than the principal arao-Lmt thereof and accrued
interest, all bonds so purchased to be canceled.
(h) To obligate lessees or purchasers of land acquired in a redevelopment
project: (1) to use such land for the Purpose designated in the redevelop-
ment plans; (2) to begin the building of specified improvements within a
period of time which the agency fixes as reasonable; and (3) to comply with
such other conditions as in the opinion of the redevelopment agency are
necessary to carry out the purposes of this act. The agency, by provision
in the; contract, may make any of the purchaser's obligations, covenants or
conditions runninD with the land, whose breach shall cause the fee to revert
to the agency.
(i) To exercise all or any part or combination of the bowers herein
granted.
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U) Nothing herein contained shall authorize such redevelopment agency
to construct any of the buildings for residential, commercial, industrial,
or other use contemplated by the redevelopment plan, or to acquire, without
the consent of the owner, any real property on.which buildings are located,
where such buildings are to be continued in their present form and use under
the redevelopment plan.
Article 6. Prerequisites
Sec. 30. A community must comply with the requirement of Sections 31 and
32 before proceeding further under this act.
Sec. 31. The community must have a planning commission.
Sec. 32. The community must have a master or general community plan
adopted by the planning commission or the legislative body, and in either
case the plan must include at least the following:
(a) The general location and extent of existing and proposed future
major thoroughfares, transportation routes, terminals, and other major public
utilities and facilities.
(b) A land-use plan which designates the proposed general distribution
and general location and extent of the uses of the land for housing, business,
industry, recreation, education, public buildings and grounds, and other
categories of public and private uses of land.
(c) A statement of the standards of population density and building in-
tensity recommended in and for the various districts and other territorial
units, together with estimates of future population growth, in the territory
covered by the plan, all correlated with the land-use plan.
(d) Maps, plans, charts or other descriptive matter showing the area or
areas in which conditions are found indicating the existence of blighted areas.
Sec. 33. The legislative body of the community may by ordinance adopted by
a majority vote of the entire membership, designate one or more areas within
the community as a redevelopmentAarea or areas. Each such ordinance shall
include a legal description of the boundaries of the area or areas designated
as a redevelopment area.
The agency or the planning commission may request the legislative body of
the community to designate one or more areas within the community as a rede-
velopment, area or areas.
Any person, group, association or corporation may, in writing, petition
the legislative body to designate one or more areas within the community as
redevelopment areas, and may submit with their petition plans showing the
proposed redevelopment of such areas or any part or parts thereof.
Article 7. Preliminary and Tentative Plans
in Project Areas
Sec. 34. The planning commission may of its own motion, or at the request
of the agency, or shall at the direction of the legislative body, or upon the
written petition of the owners in fee o, f a. majority in area of -any redevelop-
mint urea, excluding that portion thergot in public own
ship, dedicated
. .
_gam.
,s
to a public use, select one or more project areas comprising all or a portion
of such redevelopment area, and formulate a preliminary plan for the redevel-
opment of each such project area.
Sec. 35• A preliminary redevelopment plan need not be detailed, but shall
be sufficient if it;
(a) Describes the boundaries of the project area,
(b) Contains a general statement of the land uses, layout of principal
streets, population derisities, and building intensities and standards pro-
pos'ed as the basis for the redevelopment of the project area,
(c) Shows how the purposes of this act would be attained by such
redevelopment, and
(d) Shows that the proposed redevelopment conforms to the master or
general community plan.
Sec. 35.2 The planning commission shall submit the preliminary redevel-
opment plan for each project area., provided for in Section 35, to the agency
and the agency shall base the tentative plan upon the preliminary plan and
shall make an analysis of the preliminary plan, including such analysis in
its report presented to the legislative body as provided for in Section 36.
The agency and planning commission shall cooperate in the selection of
project areas and in the formulation of the preliminary and tentative plans.
Sec. 35.3. The agency must before submitting said tentative redevelopment
plan to the legislative body conduct a public rearing or hearings with
reference thereto.
Before conducting said public hearing, notice by said agency of such
hearing shall be published not less than once a week for four successive
weeks prior to the date of hearing in a newspaper of general circulation,
printed and published in the community, or if no such newspaper is printed
and published in the community, then in a newspaper selected by the agency.
The notice of hearing shall include a. legal description of the boundaries
of the area or areas designated in the tentative redevelopment plan to be
considered and a general statement of the scope and objectives of said plan.
Copies of such notices shall be mailed to the last known assessee of
each parcel of land within the redevelopment area designated in the tentative
plan, at the last known address of such assessee as shown by the records of
the assessor of or for the community.
At the time set for a hearing the agency shall provide an opportunity for
all persons, firms, associ_ations,or co.rparations or any public or private
agencies interested to be heard and to submit alternative redevelopment
plans for a project area, and shall receive and consider communications
in writing with reference thereto. Any alternative redevelopment plan sub-
mitted for a project area shall be considered and reported on by the agency
and the planning commission in the mariner provided in Section 34 of this
act when the tentative redevelopment plan of a project area is submitted to the
legislative body.
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If after said public hearings the agency shall make substantial changes in
the tentative redevelopment plan, which affect the master or general
community plan adopted by the plann4inz commission or the legislative body,
the tentative redevelopment plan shall be resubmitted to the planning
commission for its reiDort and recommendation.
Sec. 36. The tentative ;plan shall be presented by the agency to the
legislative body of the community and shall be accompanied` by a reports
(a) Setting forth the reasons for its selection as a �roject area,
(b) Describing the conditions existing in the area, physical, social
and economic, and
(c) Including a preliminary financial analysis of the roposed redevelop-
ment together with ilroposed rent ranges on properties for residential use,
for the purpose of indicating the general character of the :)roposed residential
development.
(d) Including the report and recommendations of the planning commission.
Sec. 36.3. Should the planning commission recommend against the approval
of the tentative plan submitted, the legislative body may adopt such tenta-
tive plan only u)on a two-thirds vote of the entire membership of said legis-
lative body. . Should the planning commission recommend approval or fail to
make any recommendation within thirty (30) days from the date any such ten-
tative plan is submitted to it for consideration, the legislative body may
adopt such tentative plan by a majority vote of the entire membership.
Article 8. Establishment of Project Area and
Adoption of Tentative Plan
Sec. 37. Upon submission to it of a tentative redevelopment plan for a
project area, the legislative bod.,T may approve same or it may reject the
tentative redevelopment Man as hereinafter provided, or refer it back to the
agency or the planning commission for further study or revision.
Before passing upon the tentative redevelopment Man, the legislative
body shall set a time and fix s. glace for a ,,ublic hearing on the adoption
of the tentative redevelopment plan.
Sec. 38. Notice by said Legislative body of ;uch e-rings shall be rublished
not less than onec w weeL for three successive wee'.:s rrior to t1ae date of
hearing in, a newspaper of general circulation, printed and published in the
coyrfiunity,' or if no such newspaper is printed and published in tre community,
then in a newspaper selected by the legislative body.
The notice of hearing shall include a legal description of the boundaries
of the area or areas designated in the tentative redevelopment plan to be
considered and a general statement of the scope and objective of the plan.
Sec. 39. At the time set for a hearing the legislative body shall consider
the report of the agency and the recomiaendation and report of the planning
commission, and shall provide an opportunity for all persons or agencies
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interested to be heard, and shall receive and consider communications in
writing with reference thereto, and shall take such other evidence and testi-
mony as may be presented concerning the matters under consideration.
At any time prior to the adoption of a tentative redevelopment plan by the
legislative body, any person, firm, association or corporation or any public
or private agency qualified so to do may present to the legislative body an
alternative redevelopment plan for the project area.
Sec. 39.1 Any alternative redevelopment plan of a project area sub-
mitted to the legislative body which has not already been considered and re-
ported on by the agency and the planning commission of the community shall be
referred to said agency and planning commission for consideration and report.
The agency shall report to the legislative body and make its recommendations
on the alternative redevelopment plan within thirty (30) days. The planning
commission shall report within thirty (30) days to the legislative body and
make its recommendations concerning the alternative redevelopment plan and
its conformity to the master or general plan of the community.
The hearing on a temtative redevelopment plan submitted by the agency may
be postponed or continued from time to time in order to allow time for the
agency and the planning commission to report on any alternative plan pre-
sented to the legislative body.
Sec. 40. The legislative body thereafter shall:
(a) Determine whether or not the redevelopment of the project area pur-
suant to this act is in the public interest and would tend to effectuate the
purposes and policy of this act;
(b) Approve or reject the tentative redevelopment plan or any alternative
redevelopment plan, or modify either or any of said plans and approve or
reject it as modified.
Sec. 41. If the legislative body approves a tentative redevelopment plan
for a project area, it shall adopt the plan by ordinance adopted by a majority
vote of the entire membership whereupon such area shall be established and
given a name and number and thereafter referred to as an approved redevelop-
ment project area, and all records, or certified copies thereof, in relation
to said area shall be consolidated into one file, designated by such name
and number, and shall be preserved by the clerk of the legislative body as
public records. Such ordinance shall include the following:
(a) A legal description of the boundaries of the project area;
(b) A statement of findings, based upon surveys, investigations and
reports of public agencies, and any other information showing the extent and
character of blight, obsolescence and substandard conditions in the area
and the injurious and detrimental effects thereof upon the public health,
safety and general welfare;
(c) The tentative plan for the redevelopment of the project area, showing
the principal features of the master plan or general community plan as they
apply to the project area.
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Sec. 42. The legislative body shall transmit to the agency, the planning
commission and the building department of the community a copy of any -ordi-
nance adopted pursuant to Section 41.
Sec. 43. The legislative body shall file with the county recorder of the
county in which the project area is situated a description of the land within
the project area and a statement that proceedings for the redevelopment of
said project area have been instituted under this act.
Sec. 4.4. Upon the adoption of a tentative plan for a project area, all
subsequent applicants for building permits in such area shall be advised by
the building department of the community that the site for which a building
permit is sought for the construction of buildings or for other improvements
is within a proposed redevelopment project area.
Article 9. Cooperation in Undertaking
Community Redevelopment Projects
Sec. 45. For the purpose of aiding and cooperating in the planning, under-
taking, construction or operation of redevelopment projects located within
the area in which it is authorized to act, any State public body may upon
such terms, with or without consideration, as it may determine:
(a) Dedicate, sell, convey or lease any of its property to a redevelop-
ment agency;
(b) Cause parks, playgrounds, recreational, community, educational, water,
sewer or drainage facilities, or any other works which it is otherwise empow-
ered to undertake, to be furnished adjacent to or in connection with rede-
velopment projects;
(c) Furnish, dedicate, close, pave, install, grade, regrade, plan or
replan streets, roads, roadways, alleys, sidewalks or other places which it
is otherwise empowered to undertake;
(d) Plan or replan, zone or rezone any part of such area; make any law-
fully authorized- exceptions from building regulations and ordinances;
(e) Enter into agreements (which may extend over any period, notwith-
standing.any provision or rule of law to the contrary) with the Federal
Government respecting action to- be taken by such State public body pursuant
to any of the powers granted by this act;
(f) Purchase or legally invest in any of the bonds of an agency and
exercise all of the rights of any holder of such bonds.
Article 9.5. Redevelopment Revolving fund
Sec. 45.5. The legislative body of any community, at any time after it
has adopted a resolution declaring that there is need for an agency to function
in the community, may establish a redevelopment revolving fund to be kept
in the treasury of the community. For the purpose of raising moneys to be
deposited in such funds, the community may issue and sell its general obli-
gation bonds. Any general obligation bonds to be issued by any community
pursuant to the provisions of this section shall be authorized and issued
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in the manner and within the limitations, except as herein otherwise provided,
prescribed by the laws of this State or the charter of the community for the
issuance and authorization of such bor_ds thereof for public purposes gener-
ally. Irrespective of any limitation, by general or special law, as to the
amount of such bonds which may be issued, a community may issue such bonds,
for the -purposes defined by this section, in excess of such limitation, in
such amount as may be authorized by an ordinance submitted to and approved
by the voters of such community at any general or special election.
Sec. 45.6. Any money in -the redevelopment revolving fund may be expended
from time to time, upon resolution of the legislative body, adopted by a
majority vote, for the acquisition of real property in any project area or
for the clearance, aiding in relocation of site occupants and preparation of
any project area for redevelopment, or u.p%n resole t_on of the legislative
body adopted by a two-thirds vote; any money in the redevelopment revolving
fund may be paid to the agency, upon such terms and conditions as the legis-
lative body may prescribe, to be placed in a trust fund to be expended for
the acquisition of real property in any project area, or for the clearance
of any project area for redevelopment, or for any expenses necessary or in-
cidental to the carrying out of a redevelopment plan which has been adopted
by the legislative body.
Sec. L5.7. No property, real or personal, improved or unimproved, or any
interest therein, acquired or constructed in whole or in part with moneys
from the redevelopment revolving fund shall be sold at a price or encumbered
(whether by mortgage, deed of trust or otherwise) for. an amount which will
return to the redevelopment revolving fund less than fifty per cent (501/110)
of that part of the cost of such property paid from such fund, except by
permission of the voters of the community, as indicated by a majority of
the votes cast on the proposition at any ,general or special election. All
moneys received by the agency from -the sale, lease or encumbering of property
acquired with moneys from the redevelopment revolving fund shall be rede-
posited in the fund. Ali_ other provisions of this act that relate to fi-
nancing shall be subject to the provisions of this section. Nothing con-
tained in this section shall authorize a redevelopment agency to construct
any buildings, but such redevelopment agency shall be subject to the limita-
tions imposed by the provisions of Section 29 (j) of this act.
Sec. L5.8. The legislative body of any community may abolish the redevel-
opment revolving fund whenever it shall find that the purposes for which
such fund was established have been accomplished. At the time of abolishing
such fund, the legislative body shall transfer all moneys. therein to the
general obligation bend redemption fund and shall provide that all moneys
thereafter to be deposited or redeposited in the redevelopment .revolving
fund shall be deposited in such -eneral obligation bond redemption fund.
Any surplus existing in such general obligation bond redemption fund after
payment of principal and interest shall be transferred to the general fund
of the community.
Article 10. Redevelopment Plans
Sec. 46. Each agency shall prepare or cause to be prepared, or adopt,
a- redevelopment plan or plans for each project area and for that purpose
may hold hearings and conduct examinations, investigations, and other
negotiations.
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Ulec. 47. Every redevelopment plan shall provide for participation in
the redevelopment of property in the project area by the owners of any or
all of such property if the owners shall agree to participate in such rede-
velopment in conformity with the redevelopment plan adopted by the legisla-
tive body for the area. This provision does not prohibit such owners from
submitting an alternative plan as provided in this act.
Sec. 48. Every redevelopment plan which contemplates participation in
the proposed redevelopment by an owner or owners of property in the area,
shall contain alternative provisions for redevelopment of such property if
the owner or owners shall fail to participate in such redevelopment as agreed.
Sec. 49. A redevelopment plan for a project area shall -be based upon the
approved tentative plan and shall conform to the master or general community
plan insofar as the latter applies to the project area. The agency shall
consult with the planning commission of the community in formulating rede-
velopment plans. Before the redevelopment plan of each project area is sub-
mitted to the legislative body, it shall be submitted to the planning
commission for its report and recommendation concerning the redevelopment
plan, and concerning its conformity to the master or general community plan
adopted by the planning commission or the legislative body. The planning
commission shall within thirty days from the date any such redevelopment plan
is submitted to it for consideration, make and file its report and recommen-
dation thereon with the agency, and should the planning commission recommend
against the approval of the redevelopment plan submitted, the legislative
body may adopt such plan only upon a two-thirds vote of the entire membership
of the legislative body. Should the planning commission recommend approval
or fail to make any recommendation within the time mentioned herein, the
legislative body may adopt such redevelopment plan by a majority vote of the
entire membership.
Sec. 50. Every redevelopment plan shall describe the proposed method of
financing the redevelopment of the project area in sufficient detail that the
legislative body may determine the economic feasibility of the plan.
Sec. 51. Every redevelopment plan shall contain provisions showing the
amount of open space to be provided, street layout, limitations on type, size,
height, number and proposed use of buildings, number of dwelling touts, the
property to be devoted to public purposes, and the nature of such purposes,
and such other covenants, conditions and restrictions as the legislative
body may prescribe.
Sec. 52. A redevelopment plan may provide for the acquisition by gift,
purchase, lease, or condemnation of a1.1 or any portion of the real property
in the project area by the agency.
Sec. 53. A redevelopment plan shall provide for the lease or sale by the
agency of all real property acquired by it in any project area, except such
property as may be conveyed by such agency to the community. Any such lease
or sale shall be conditioned on the redevelopment and use of the property in
conformity with the redevelopment plan.
Sec. 54. A redevelopment plan may provide for the issuance of bonds by
the agency and the expenditure of the proceeds from the sale thereof in
carrying out the redevelopment plan.
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Sec. 55. Upon the formulation or adoption of a redevelopment plan, and
the submission thereof to the planning commission of the community as provided
in Section 49, the agency shall submit it to the legislative body.
Article 11. Adoption of redevelopment Plan
Sec. 59. The legislative body shall consider the redevelopment plan or
plans of a project area submitted by the agency and any alternative plan
submitted in accordance with this act and all evidence and testimony for or
against the adoption of said plan or plans.
Sec. 60. On the question of the adoption of any redevelopment plan the
legislative body shall determine whether or not the plan if carried out
would redevelop the area in conformity with this act and in the interests of
the public peace, health, safety, and welfare.
Sec. 61. The legislative body shall also consider whether or not the
adoption and carrying out of the redevelopment plan is economically sound
and feasible.
Sec. 62. If alternative plans are submitted, the legislative body shall
give preference to that plan which it deems will best redevelop the project
area in conformity with the _purposes and policy of this act and the master or
general plan for the community and which requires the least interference with
the continued enjoyment of existing property rights consistent with the
purposes of this act.
Sec. 63. If the legislative body determines that the redevelopment plan f :
conforms to the master or general plan of the community, that such plan is
economically sound and feasible, and that the carrying out of the plan would
promote the public peace, health, safety and welfare of the community and
would effectuate the purposes and policy of this act, the legislative body may
adopt by ordinance adopted by a majority vote of all the members the plan as
the official redevelopment plan for the project area.
Sec. 64. If the plan provides .for the expenditure of any money by the
community the legislative body shall provide for such expenditure at the time
of or in connection with the approval of the plan.
Sec. 65. If the plan provides for the opening, closing, widening, or
charging the grade of any streets or alleys or any other modification of the
street layout in the project area, the legislative body shall declare its
intention to institute proceedings therefor at the time of or in connection
with the adoption of the plan.
Sec. 66. If. the plan provides for the condemnation of any real property,
the legislative body shall not adopt the plan unless it contains adequate
provisions for payment for property so acquired as provided by law.
Sec. 67. If the plan provides for the issuance of bonds or other obli-
gations of the agency, the legislative body shall not approve the plan unless
it contains adequate provision for the payment of the principal and interest
on such bonds as the same may become due and payable.
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Sec. 68. I£ -.the plan provides for the displacement, whether temporary
or permanent, of any occupants of housing facilities in the project area,
the legislative body shall not approve the plan, except upon the finding that
adequate permanent housing facilities are or will be made available in the
community for such displaced occupants at rents comparable to those obtaining
in the community at the Mime of their displacement.
The legislative bony shall further be satisfied that such permanent
housing facilities shall, in any event, be made available within three years
from the tirie such occupants will be displaced; and that pending the devel-
opment of such permanent housing faciJ_ities_, , there will be available to such
displaced. occupants adequate temporary housing facilitiesrat rents comparable
to those obtaining in the community at the time of their displacement.
If persons of low income (as defined in the Housing Authorities Law) are
to be displaced, the legislative body shall, prior to its approval of the
redevelopment plan, obtain and consider the recommendations of the Housing
Authority, if any, authorized to transact business in the community, with
respect to the availability and provision of adequate housing for such persons
of low income.
Sec. 69. No plan shall be approved unless it contains adequate safeguards
that the work of redevelopment will 'be carried out in accordance with the
plan and provides for the retention of controls and the establishment of any
restrictions or covenants for such periods of tine and under such conditions
as in the judgment of the legislative body are necessary to effectuate the
purposes of this act, which shaft run with land sold or leased for private -
use. The establishment of such controls is hereby declared to constitute a
public purpose under the provisions of this act.
Sec. 70. The approval of a -redevelopment plan by a legislative body
shall be by o.rdinanco. Such ordinance shall;
(a) Contain a legal description of the boundaries of the project area
covered by the redevelopment plan,
(b) Set forth the purposes and intent of the legislative body with respect
to the project area,
~a (c) Refer specifically to the determinations required in other sections of
this article,
(d) Contain by reference to maps, reports, and other information the full
details of the approved plan, and
(e) Designate the approved plan as the official redevelopment plan of
the project area.
Upon the filing of such ordinance with the clerk or other appropriate
officer of the legislative body, the agency shall be sent a copy thereof,
and the responsibility for the carrying out of the plan shall be vested in
the agency.
Sec. 71. The legislative body may, in its discretion, require; that the
agency, before entering into any or certain types of contracts in connection
with the redevelopment plan or any portion thereof, shall submit such con-
tracts to the legislative body and obtain its approval thereof.
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Sec. 72. If the redevelopment plan adopted provides for participation
in the redevelopment of property in the area by an owner or owners of such
property, and if for a period of 30 days after the adoption of such plan,
such owner or owners fail or refuse to enter into a binding agreement to
carry out such participation in the redevelopment in accordance with such
plan, the applicable alternative provisions of the redevelopment plan, pro-
vided for in Section 48 of this act shall become effective as the official
redevelopment plan of the project area. The legislative body may, at its
discretion, extend said 30-day period by not more than 60 days.
Sec. 73. After the adoption of the redevelopment plan and after the
expiration of -the period provided for in Section 72 of this act, further pro-
ceeding which affect the specific area in which owners refused to participate
with reference to redevelopment of the project area shall be stayed for a
period of 30 days. The time for the commencement of actions to contest the
validity of the proceedings prescribed by the foregoing provisions of this
act shall be barred upon the expiration of said period of 30 days, and no
action thereafter commenced shall raise any question concerning the validity
of the proceedings provided for in the foregoing provisions of 'this act, and
in all actions cormr.enced after the expiration of said period of 30 days,
except as to matters affecting jurisdiction, the validity of the proceedings
prescribed by the foregoing provisions of this act shall be conclusively
presumed.
Upon the expiration of said 30-day stay, the agency shall have the author-
ity to execute such plan.
Article 12. Eminent Domain Proceedings
Sec. 74. The agency shall have the right to acquire all or any part of
the real property within the project area by the exercise of the power of
eminent domain in accordance with the provisions of the Code of Civil
Procedure and other applicable provisions of law.
Sec. 75. Property already devoted to a public use may be acquired by
the agency by the exercise of the power of eminent domain, except that no
property of a State public body may be acquired without its consent.
Article 13. Bonds of the Agency
Sec. 78. An agency shall have power to issue bonds from time to time in
its discretion, for any of its corporate purposes. An agency shall also
have power to issue refunding bonds for the purpose of paying or retiring
bonds previously issued by it. An agency may issue such types of bonds as
it may determine, including bonds on which the y:rincipal and interest are
payable: (a) exclusively from the income and revenues of the redevelopment
projects financed with the proceeds of such bonds, or with such proceeds
together with financial assistance from the State or Federal governments in
aid of such projects; (b) exclusively from the income and revenues of cer-
tain designated redevelopment projects whether or not they were financed in
whole or in part with -the proceeds of such bonds; (c) from its revenues
generally; (d) from any contributions or other financial assistance from the
State or Federal governments; or (e) by any combination of these methods.
Any of such bonds may be additionally secured by a pledge of any revenues or
by an encumbrance (whether by mortgage, deed of trust or otherwise) of any
redevelopment project, projects or other property of the agency.
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Neither the members of an agency nor any person executing the bonds
shall be liable personally on the bonds by reason of the issuance thereof.
The bonds and other obligations of any agency (and such bonds and obligations
shall so state on their face) shall not be a debt of the community, the
State or any political subdivision thereof and neither the community, nor
the State or any political subdivision thereof shall be liable thereon, nor
in any event shall such. bonds or obligations be payable out of any funds or
properties other than those of said agency. The bonds shall not constitute
an indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction.
Sec. 78.5. For the purposes of this act, no agency shall sell, offer for
sale, negotiate for the sale of, or take subscriptions for any bonds of its
own issue, to, with or from the public, until it has first applied for and
secured from the Commissioner of Corporations 'a permit authorizing it so
to do.
The application shall be made and the permit issued in accordance with
reasonable regulations therefor which the commissioner is hereby authorized
to adopt and amend from time to time. The commissioner shall issue the per-
mit if he finds that the project is financially sound and that the sale of
the bonds would not be unfair, unjust or inequitable to the purchasers°thereof.
The provisions of the Corporate Securities Act, to the extent not inconsistent
herewith, are incorporated herein, insofar as they relate to applications for
permits and the issuance of permits as required by the provisions of this
section.
Sec. 79. Bonds of an agency shall be authorized by its resolution and may
be issued in one or more series and shall bear such date or dates, mature at
such time or times, bear interest at such rate or rates, not exceeding four
and one-half per cent per annum, be in such denomination or denominations,
be in such form, either coupon or registered, carry such conversion or regis-
tration privileges, have such rank or priority, be executed in such manner,
be payable in such medium of payment, at such place or places, and be subject
to such terms' of redemption (with or without premium) as such resolution,
its trust indenture or mortgage may provide.
The bonds may be sold at not less than par, at public sale held after
notice published once at least five days prior to such sale in a newspaper
of general circulation published in the community, or, if no such newspaper
be published in the community, then in a newspaper of general circulation
published in the county; provided, however, that such bonds may be sold at
not less than par to the Federal Government at private sale without any
advertisement.
In case any of the members or officers of the agency whose signatures
appear on any bonds or coupons shall cease to be such members or officers
before the delivery of such bonds, such signatures shall, nevertheless, be
valid and sufficient for all purposes, the same as if they had remained in
office until such delivery. Any provision of any law to the contrary not-
withstanding, any bonds issued pursuant to this act shall be fully negotiable.
In any suit, action or proceedings involving the validity or enforceability
of any bonds of an agency or the security thereof, any such bond reciting in
substance that it has been issued by the agency to aid in financing a
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redevelopment project shall be conclusively deemed to have been issued for
a redevelopment project of such character and said project shall be conclu-
sively deemed to have been planned, located and constructed in accordance
with the purposes and provisions of this act.
Sec. 80. In connection with the issuance of bonds, an agency, in addition
to its other powers, shall have power:
(a) To pledge all or any part of its gross or net rents, fees, or revenues
to which its right then exists or may thereafter come into existence.
(b) To encumber (by mortgage, deed of trust or otherwise) all or any part
of its real or personal property, then owned or thereafter acquired.
(c) To covenant against pledging all or any part of its rents, fees and
revenues, or against encumbering all or any part of its real or personal
property, to which its right or title then exists or may thereafter- come into
existence or against permitting or suffering any lien on such revenues or
property; to covenant with respect to limitations on its right to sell, lease
or otherwise dispose of any redevelopment project or any part thereof; and to
covenant as to what other, or additional debts or obligations may be incurred
by it.
(d) To covenant as to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition of the
proceeds thereof; to provide for the replacement of lost, destroyed or
mutilated bonds, to covenant against extending the time for the payment of
its bonds or interest thereon; and to redeem the bonds, and to covenant for
their redemption and to provide the terms and conditions thereof.
(e) To covenant as to the consideration or rents and fees to be charged
in the sale or lease of a redevelopment project or projects, the amount to be
raised each year or other period of time by -rents, fees and other revenues,
and as to the use and disposition to be made thereof; -to create or to author-
ize the creation of special funds for moneys held for redevelopment or other
costs, debt service, reserves, or other purposes, and to covenant. as to the
use and disposition of the moneys held in such funds.
(f) To prescribe the procedure, if any, by which the terms of any contract
with bondholders may be amended or abrogated, the amount of bonds the holders
of which must consent thereto and the manner in which such consent may be
given.
(g) To covenant as to the use of any or all of its real or personal
property; and to covenant as to the maintenance of its real and personal
property, the replacement thereof, the insurance to be carried thereon and
the use and disposition of insurance moneys.
(h) To covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition, or obligation; and to
covenant and prescribe as to events of default and terms and conditions upon
which any or all of its bonds or obligations shall become or may be declared
due before maturity, and as to the terms and conditions upon which such
declaration and its consequences may be waived.
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(i) To vest in a trustee or trustees or the holders of bonds or any
proportion of them the riTlt to enforce the payment of the bonds or any
covenants SBCUaing Or ref-Ming to the bonds~ to vest in a tz—astee or trustees
the right, in the event of a default by said agency; to take possession of any
redevelopment project or p;irt th-ereof, and to collect the rents and revenues
arising therefrom and to dispose of such moneys in accordance with the agree-
ment of the agency with said tri.tstee; to provide for the powers and duties of
a trustee or trustees and to 11m7t the liabilities thereof; and to provide
the terms and co?.d:I�.ticn.s upon which the trustee or tray tees or the holders
of bonds or any proporticn of them may enforce any covenant or rights
securing or relating to the bonds.
(j) To exercise all or any part or combination of the powers herein
granted; to make covenants other than and in addition to the covenants herein
expressly authorized, of like or different character; to make such covenants
and to do any and all such .acts and things as may be necessary or convenient
or desirable in order to secure its bonds, or, in the discretion of said
agency, except as otheryriae provided in this act as will tend to make the
bonds more marketable notwl.thstanding that such covenants, acts, or things
/ may not be enumerated herein.
Sec. 81. An obligee of an agency shall have the right in addition to
all other rights which may be conferred on such obligee, subject only to
any contractual restrictions binding upon such obligee:
(a) By mandamus, suit, action or proceeding at law or in equity to compel
said agency and the members', officers, agents or employees thereof to perform
each and every term, provision, and covenant contained in any contract of
said agency with or for the benefit of such obligee, and to require the
carrying out of any or all such covenants and agreements of said agency and
the fulfillment of all duties imposed upon said agency by this act.
(b) By suit, action or proceeding in equity, to enjoin any acts or things
which may be tuilawful, or the violation of any of the rights of such obligee
of said agency.
Sec. 82. An agency shall have power by its resolution, trust indenture,
mortgage, lease or otter contract to confer upon any obligee holding or
representing a specified amount in bonds, the right (in addition to all rights
that may otherwise be conferred) , upon the happening of an event or default
as defined in such resolution or instrument, by suit, action or proceeding
in any court of competent jurisdiction:
(a) To cause possession of any redevelopment project or any part thereof
to be surrendered to any such obligee.
(b) To obtain the appointment of a receiver of any redevelopment project
of said agency or any part -thereof and of the rents and profits therefrom.
If such receiver be appointed, he may enter and take possession of such
redevelopment project or any part thereof and operate and maintain same,
and collect and receive all fees, rents, revenues, or other charges thereafter
arising therefrom; and shall keep such moneys in separate account or accounts
and apply the saTce in accordance with the obligations of said agency as the
court shall direct.
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(c) To require said agency and the members and employees thereof to
account as if it and they were the trustees of an express trust.
Sec. 83. The bonds of an agency are declared to be issued for an essential
public and governmental purpose, and together with interest thereon and
income therefrom shall be exempt from all taxes.
Sec. 84. Notwithstanding any restrictions on investments contained in
any laws of this State, the State and all public officers, municipal cor-
porations, political subdivisions and public bodies, all banks, bankers,
trust companies, savings banks and institutions, building and loan associations,
savings and loan associations, investment companies, and other persons carry-
ing on a banking business, all insurance companies, insurance associations
and other persons carrying on an insurance business and all executors, admin-
istrators, guardians, trustees and other fiduciaries may legally invest any
sinking funds, moneys or other funds belonging to them or within their con-
trol in any bonds or other obligations issued by an agency, as herein defined,
and such bonds and other obligations shall be authorized security for all
public deposits; it being one of the purposes of this act to authorize any
persons, firms, corporations, associations, political subdivisions, bodies
and officers, public or private, to use any funds owned or controlled by them,
including (but not limited to) sinking, insurance, investment, retirement,
compensation, pension and trust funds, and funds held on deposit, for the
purchase of any such bonds or other obligations; provided, however, that
nothing contained in this act shall be construed as relieving any person,
firm, or corporation from any duty of exercising reasonable care in selecting
securities.
Sec. 84.5. All of the provisions of this article shall be subject to the
limitations of Article 9.5 of this act.
Article 14. Exemption from Execution
Sec. 85. All real property of an agency shall be exempt from levy and
sale by virtue of an execution, and no execution or other judicial process
shall issue against the same nor shall any judgment against an agency be a
charge or lien upon its real property; provided, however, that the provisions
of this section shall not apply to or limit the right of obligees to fore-
close or otherwise enforce any mortgage, deed of trust or other encumbrance
of an agency or the right of obligees to pursue any remedies for the enforce-
ment of any pledge or lien given by an agency on its rents, fees, or revenues.
tirticle 15. Aid from Federal or State Government
Sec. 86. In addition to the powers conferred upon an agency by other
provisions of this act, an agency is empowered to borrow money or accept
financial or other assistance from the Federal or State Governments for or in
aid of any redevelopment project within its area of operation, and to such
ends comply with any conditions attached thereto.
Article 16. Contracts for Work
Sec. 87. Any work of grading, clearing, demolition or construction, of
a value of more than one thousand five hundred dollars ($1,500) undertaken by
the agency shall be done by contract, after competitive bids. Before awarding
any contract for such work to be done in a project, the agency shall ascertain
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Y
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the general prevailing rate of per diem wages in the locality in which the
work is to be performed, for each craft or type of workman needed to execute
the contract or work, and shall specify in the call for bids for the contract
and in the contract itself the general prevailing rate of per diem wages and
ithe general prevailing rate for regular holiday and overtime work in the
locality, for each craft or type of workman needed to execute the contract.
The contractor to whom the contract is awarded and any subcontractor under
him shall pay not less than the specified prevailing rate of wages to all
workmen,V employed in the execution of the contract. The contractor shall as
a penalty to the agency who awarded the contract forfeit ten dollars ($10) for
each calendar day or portion thereof for each workman paid less than the
stipulated prevailing rates for any public work done under the contract by
him or by any subcontractor under him and the agency awarding the contract
shall cause to be inserted in the contract a stipulation to this effect. Each
contractor and subcontractor shall keep an accurate record showing the name,
occupation and the actual per diem wages paid to each workman employed by him
in connection with the work. The record shall be kept open at all reasonable
hours to the inspection of the agency.
The said agency shall require the successful bidder or bidders to file
with the agency good and sufficient bonds, to be approved by the agency,
conditioned upon the faithful performance of the contract and upon the payment
of all claims for labor and material in connection therewith, such bonds to
contain the terms and conditions set forth in Chapter 3 of Division 5 of
Title 1 of the Government Code and to be subject to the provisions of that
Chapter.
Article 17. Cooperation Between Communities
Sec. 88. The territorial jurisdiction of the agency of a county is the
unincorporated territory in the county, and that of a city or city and county
is the territory within its limits.
Sec. 89. Two or more agencies within two or more communities may jointly
exercise -the powers granted under this act and in such case the agencies, the
planning commissions and the legislative bodies may hold joint hearings and
meetings, or the legislative bodies of the communities acting separately may
each designate the agency of one of the communities to act as the agency of
all of the communities interested. In this event the agency designated shall
obtain the report and recommendation of the planning commission of each
community on the redevelopment plan and its conformity to the master or gen-
eral plan of each community before presenting the tentative redevelopment
plan or the redevelopment plan to the respective legislative bodies for
adoption.
The designated agency and each planning commission shall cooperate in
formulating redevelopment plans.
The legislative body of any community may by resolution consent to the
inclusion of a part of the area under its jurisdiction in a contiguous
project area to be developed by another community:
Article 18. Severability of Provisions
Sec. 90. If any provision of this act, or the application thereof to any
person or circumstance, is held inv;�lid, the remainder of the act, or the
application of such provision to other persons or circumstances, shall not
be affected thereby.
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