HomeMy WebLinkAboutSOUTHEAST COASTAL PROJECT AREA - AGENCY DEPT RESOLUTION `S ,eS/✓I,g-���i� ��lS
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2006 OCT -4 W 10: 04
Council/Agency Meeting Held: I'r y C,L .11K
Gl't; CF
Deferred/Continued to: ¢;Ui1TiilG i"0? SZAC)i
;KAp rov d ❑ Conditionally Approved ❑ Denied CI ,s SKIature
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Council Meeting Date: 10/16/2006 Department ID Number: FN 06-010
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL/REDEVELOPMENT
AGENCY MEMBERS
SUBMITTED BY: PENEeE UCt
L R TH-GRAFT,DPAADMINISTRATOR /
EXECDIRECTOR
PREPARED BY: DAN T. VILLELLA, CPA, FINANCE DIRECTOR
STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT
/ DEPUTY EXECUTIVE DIRECTOR j?,'
SUBJECT: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON BEACH AMENDING THE AGENCY DEBT
PURSUANT TO THE OPERATIVE AGREEMENT BETWEEN THE
CITY OF HUNTINGTON BEACH AND THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH FOR THE
HUNTINGTON BEACH REDEVELOPMENT PROJECT (MERGED
PROJECT AREA) AND SOUTHEAST COASTAL PROJECT AREA
Statement of Issue, Funding Source, Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachment(s)
Statement of Issue:
The Redevelopment Agency of the City of Huntington Beach incurs debt that allows it to
receive tax increment revenue in accordance with California Community Redevelopment
Law. The Agency is required to file an annual statement to document this debt with the
County of Orange Auditor/Controller. This statement is also needed for audit purposes and
to keep the City Council informed of the changes in the debt owed the City by the
Redevelopment Agency for the merged Huntington Beach Project Area and the Southeast
Coastal Project Area.
Funding Source:
Non-Applicable
Recommended Action: Motion to:
Adopt Resolution No. _ of the Redevelopment Agency of the City of Huntington
Beach amending the Agency Debt pursuant to the Operative Agreement between the City of
Huntington Beach and the Redevelopment Agency of the City of Huntington Beach for the
merged Huntington Beach Project Area and the Southeast Coastal Project Area. The debt at
REQUEST FuR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: FN 06-010
September 30, 2006 will be as follows:
Merged Project Area $84,598,047
Southeast Coastal Project Area 7,312,583
Total Debt $91.910. 330
Alternative Action(s):
1. Do not adopt the resolution in which would result in no update of the Agency debt
to the City.
2. Adopt the agreement with modifications that the City Council would specify.
Analysis:
To receive tax increment revenue, the Redevelopment Agency must have sufficient debt on
its books each year. It is common practice for cities to book all possible eligible expenditures
within a redevelopment project area, such as capital projects, as a debt of the
Redevelopment Agency. These capital projects have been undertaken as part of the normal
course of business through a number of the City's specialized funds, such as the Water Fund
and the Sewer Fund. In addition, interest accrues on this debt, based on the City's annual
rate of investment return, which further assures the Agency's ability to collect tax increment
revenue in the future. There have been no increases in the debt other than the interest
accrual for either project area
The City charged the Agency 3.78 percent on all outstanding advances for October 1st to
September 30 h, which is approximately the average yield earned by the City Treasurer on
investments for the year through June 30th, 2006. The, total interest accruals were
$3,302,004.
The City Council/Agency originally approved, during the budget process, $5,934,450 of debt
repayment for the 2005/2006 fiscal year. During the year, the Redevelopment Agency paid
$100,000 to the Huntington Beach Conference and Visitors Bureau for the City obligations
outlined in the Agreement between the City of Huntington Beach and the Huntington Beach
Conference and Visitors Bureau. As the Agency paid the $100,000, the Agency's debt to the
City needs to be reduced by this amount. Additionally, the debt repayment had been
reduced by $480,977 in order to fund the professional agreements for the Preparation of
Economic Revitalization Strategic Plan Beach Boulevard Corridor and Edinger Corridor. The
revised total debt repayment amount in fiscal year 2005/2006 is $5,553,473.
Cash Debt Repayment—Original Budget $5,934,450
Huntington Beach Conference and Visitors Bureau 100,000
Funding for Professional Agreements (480,977)
FY 2005/2006 Debt Repayment $5,553,473
The schedule below shows the breakdown of the operative agreement debt by fund and the
changes during the year for the merged project area. It does not include debt incurred with
entities other than the City such as bonds, mortgages, and debt owed through Disposition
and Development Agreements and Owner Participation Agreements with private parties.
-2- 9/29/2006 3:17 PM
I
REQUEST COUNCIL/REDEVELOPMENT r.,ENCY ACTION
MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: FN 06-010
Merged Project Area
Pre AB 1290 Agency Debt
As of September 30, 2006
DEBT @ BUDGETED ACCRUED DEBT @
10/1/2005 REPAYMENTS INTEREST 9/30/2006
General Fund
Direct Advances $ 3,565,032 $ 3,565,032
Interest on Direct Advances $ (134,768) $134,758
Total Direct Advances 3,565,032 (134,758) 134,758 3,565,032
Indirect Advances 6,567,353 ` 6,567,353
Interest on Indirect Advances (248,246) 248,246
Total Indirect Advances 6,567,353 (248,246) 248,246 6,567,353
Land Sales 32,833,417 32,833,417
Interest On Land Sales 34,357,033 (5,170,469) 2,539,799 31,726,363
Total Land Sales 67,190,450 (5,170,469) 2,539,799 64,559,780
Total General Fund 77,322,835 (5,553,473) 2,922,803 74,692,165
Sewer Fund
Direct Advances 130,560 130,560
Interest on Direct Advances 90,062 8,340 98,402
Total Direct Advances 220,622 8,340 228,862
Deferred Development Fees 37,888 37,888
Interest On Deferred Development Fees 99,513 5,194 104,707
Total Deferred Development Fees 137,401 5,194 142,595
Total Sewer Fund 358,023 13,534 371,557
Drainage Fund
Direct Advances 250,000 250,000
Interest on Direct Advances 281,700 20,098 301,798
Total Direct Advances 531,700 20,098 551,798
Deferred Development Fees 53,650 53,650
Interest On Deferred Development Fees 92,612 5,529 98,141
Total Deferred Development Fees 146,262 5,529 151,791
Total Drainage Fund 677,962 25,627 703,589
Park A & D Fund
Deferred Land Sale 1,740,834 1,740,834
Interest On Deferred Land Sale 2,639,042 165,559 2,804,601
Total Land Sales 4,379,876 165,559 4,545,435
Deferred Development Fees 247,664 247,664
Interest on Deferred Development Fees 77,209 12,280 89,489
Total Park A& D Deferred Dev Fees 324,873 12,280 337,153
Total Park A & D Fund 4,704,749 177,839 4,882,588
Capital Improvement Fund
Direct Advances 200,000 200,000
Interest On Direct Advances 308,861 19,235 328,096
Total Capital Improvement Fund 508,861 19,235 528,096
Water Fund
Direct Advances 1,138,000 1,138,000
Interest on Direct Advances 2,157,483 124,569 2,282,052
Total Water Fund 3,295,483 124,529 3,420,052
Total Pre AB 1290 Debt-All Funds $ 86,867,913 $ (5,553,473) $ 3,283,607 $84,598,047
-3- 9/26/2006 3:58 PM
REQUEST F _R COUNCIL/REDEVELOPMENT ,._jENCY ACTION
MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: FN 06-010
The Agency is now classifying debt as "Pre AB 1290" and "Post AB 1290." AB 1290 was a
sweeping redevelopment reform bill enacted in 1993 that placed time limits on incurring debt
within Redevelopment project areas. Under the terms of AB 1290, debt incurred prior to
January 1, 1994 can continue to be repaid after the project area has expired. Staff is
recommending that all debt repayments be applied first to debt incurred after January 1,
1994, then to debt incurred prior to that date. All of the debt at year-end is considered pre
AB 1290 debt.
Southeast Coastal Project Area:
On September 2, 2003 the Council/Agency approved a Cooperation Agreement Regarding
Capital Improvements in the project area. The debt in this project area is recorded on a
prospective basis. The amount identified as debt is the entire Conceptual Five Year Capital
Improvement Program for the project area totaling $6,775,000. The debt is activated as
projects are begun. A total of $270,000 from the General Fund has been used to fund the
Conservancy Grant in fiscal year 2004/2005. Additionally, the project was advanced
operating expenses from the General Fund and the Merged Project Area Redevelopment
Fund in fiscal year 2003/2004. Interest will be charged on the advances from the General
Fund but not on the advances from the Merged Project Area Redevelopment Fund. Because
the debts were incurred after January 1, 1994, the entire amount is classified as post AB
1290.
The schedule presented on the next page shows the breakdown of the operative agreement
debt by fund and the changes for the Southeast Coastal Project Area
Southeast Coastal Project Area
Post AB 1290 Agency Debt
As of September 30, 2006
DEBT @ BUDGETED ACCRUED DEBT @
10/1/2005 REPAYMENTS INTEREST 9/30/2006
General Fund
Direct Advances $ 199,946 $ 199,946
Interest On Advance 10,557 $ 7,957 18,514
Total Direct Advances 210,503 7,957 218,460
Capital Improvement Projects 270,000 270,000
Interest 6,195 10,440 16,634
Total Capital Improvement Projects 276,194 10,440 286,634
Total General Fund 486,697 18,397 505,094
_Merged Project Area RDA Fund
Direct Advances 302,489 302,489
Interest On Advances
Total Merged Project Area RDA Fund 302,489 302,489
Total Post AB 1290 Debt—All Funds $ 789,186 $ 18,397 $ 807,583
-4- 9/26/2006 3:58 PM
r
REQUEST F _ R COUNCIL/REDEVELOPMENT i,.`` `ENCY ACTION
MEETING DATE: 10/16/2006 DEPARTMENT ID NUMBER: FN 06-010
Southeast Coastal Project Area
Future Capital Projects Balance General Fund
As of September 30, 2006
BEGINNING BUDGETED ACCRUED AVAILABLE
BALANCE @ REPAYMENTS INTEREST BALANCE
10/1/2005 @ 9/30/2006
Capital Improvement Projects $6,505,000 $6,505,000
Environmental Status:
Non-Applicable
Attachment(s):
City Clerk's
Page Number No. Description
1. A Resolution No. J&3 of the Redevelopment Agency of
the City of Huntington Beach Amending the Agency Debt
Pursuant to the Operative Agreement Between the City of
Huntington Beach and the Redevelopment Agency of the City of
Huntington for the Huntington Beach Redevelopment Project
(merged Project Area and Southeast Coastal Project Area.
-5- 9/26/2006 3:58 PM
ATTACHMENT # 1
RESOLUTION NO. 363
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH AMENDING THE AGENCY DEBT PURSUANT TO THE OPERATIVE
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH FOR THE
HUNTINGTON BEACH REDEVELOPMENT PROJECT, AND THE COOPERATION
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH REGARDING
CERTAIN CAPITAL IMPROVEMENTS WITHIN, OR OF BENEFIT TO, THE SOUTHEAST
COASTAL REDEVELOPMENT PROJECT
WHEREAS, the City Council of the City of Huntington Beach (the "City Council")
adopted Ordinance Nos. 2576, 2577, 2578, 2582, and 2743 approving and adopting the
Redevelopment Plan for the Yorktown-Lake Redevelopment Project, the Redevelopment Plan
for the Talbert-Beach Redevelopment Project, the Redevelopment Plan for the Main-Pier
Redevelopment Project, the Redevelopment Plan for the Oakview Redevelopment Project, and
the Redevelopment Plan for the Huntington Center Commercial District Redevelopment Project,
respectively; and
The Redevelopment Agency of the City of Huntington Beach ("Agency") and the City of
Huntington Beach ("City") entered into a Cooperative Agreement, dated June 20, 1983, by which
the City agreed to provide to the Agency certain assistance and to otherwise cooperate with the
Agency in carrying out redevelopment projects; and
Pursuant to the Cooperative Agreement, the Agency and City Council entered into
Operative Agreements for the Yorktown-Lake, Talbert-Beach, Main-Pier, Oakview and
Huntington Center Redevelopment Projects (the "Constituent Projects"), by which the City
provided the Agency with both administrative and/or technical services, constructed required
public improvements and facilities as appropriate and necessary, and provided funds to carry out
the Constituent Projects; and
Said Operative Agreements also identified the terms under which the Agency would
reimburse the City for the associated costs of such services, improvements, facilities and funds;
and
The City Council adopted Ordinance No. 3343 on December 16, 1996 amending and
merging the Constituent Projects into the Redevelopment Plan for the Huntington Beach
Redevelopment Project (the "HBRP"); and
The City Council adopted Ordinance No. 3561 on June 17, 2002, approving and adopting
the Redevelopment Plan for the Southeast Coastal Redevelopment Project ("SCRP"); and
The Agency and the City entered into a Cooperation Agreement, dated September 2, 2003
(the "SCRP Cooperation Agreement"), regarding redevelopment projects and capital
improvements to be carried out in the SCRP Area; and
06-580/4710 1
Agency Res . No . 363
It is now necessary and appropriate that the City Council and the Agency amend the
Operative Agreements pursuant to the Cooperative Agreement and the SCRP Cooperation
Agreement, to reflect the Agency's total debt as of September 30, 2006.
NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does
hereby resolve as follows:
SECTION 1. That the Operative Agreements between the Redevelopment Agency and
the City of Huntington Beach for the implementation of the HBRP, and the SCRP Cooperation
Agreement, are still in effect as previously approved.
SECTION 2. That, pursuant to such Operative Agreements and the SCRP Cooperation
Agreement, the Agency debt to the City, which is to continue to be carried forward for the HBRP
and the SCRP, is hereby amended as follows:
HBRP SCRP Total
Operative Agreement Debt 10/1/05 . $86,867,9L3 $7,294,186 $94,162,099
Accrued Interest 10/1/05 to 9/30/06 3,283,607 18,397 3,302.004
Other Reductions of Debt (5,553,473) -- (5,453,473)
Total Agency Debt as of 9/30/06 $84,598,047 7 312 583 91,910,630
SECTION 3. The Chairperson is hereby authorized and directed to amend the Agency
debt to the City as approved hereby.
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington
Beach at a regular meeting thereof held on the 16 t h day of October 2006.
GGc.�
Chairperson
REVIEWED AND APPROVED: VED AS TO FORM:
Executive Director Agency Attorney
�oJ�ob
INITIATE AND
APPROVED:
Director of rinance
06-580/4710 2
Res. No. 363
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, JOAN FLYNN, Clerk of the Redevelopment Agency of the
City of Huntington Beach, California, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Redevelopment Agency of
the City of Huntington Beach at a regular meeting of said Redevelopment
Agency held on the 16th day of October, 2006 and that it was so adopted
by the following vote.-
AYES: Bohr, Green, Coerper, Sullivan, Hardy, Hansen Cook
NOES: None
ABSENT: None
ABSTAIN: None
Clelyof the Redevelopme Agency
of the City of Huntington Beach, CA
RCA ROUTING SHEET
INITIATING DEPARTMENT: FINANCE
SUBJECT: A Resolution of the Redevelopment Agency of the City
of Huntington Beach Amending the Agency Debt
Pursuant to the Operative Agreement Between the City
of Huntington Beach and the Redevelopment Agency of
the City of Huntington for the Huntington Beach
Redevelopment Project(Merged Project Area) and
Southeast Coastal Project Area
COUNCIL MEETING DATE: October 16, 2006
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached
Not Applicable ❑
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Applicable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Ap licable
Bonds (If applicable) Attached t A licable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Ap licable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff ( )
Deputy City Administrator (Initial) ( )
City Administrator (Initial)
)
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: Robert Sedlak, Accounting Manager