HomeMy WebLinkAboutIntroduction of Ordinance No. 3793 Amending the Southeast Co V�
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Council/Agency Meeting Held: ZZ �o
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.,Approved ❑ Conditionally Approved ❑ Denied 4-0 Cit erk' igna ur
Council Meeting Date: 11/5/2007 Department ID Number: ED 07-46
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Co_unci a bers
SUBMITTED BY: Penelope Culbrdth-Graf�A, City Administrator
PREPARED BY: Stanley Smalewitz, Director of Economic Developmentjj
SUBJECT: Adopt Ordinance3_7_13_to amend the Southeast Coastal Redevelopment
Plan, extending the plan effectiveness deadline, payment of
indebtedness deadline and tax increment receipt Pursuant to SB 1045.
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: As a component of the FY 2003-2004 State budget, the Legislature
adopted SB 1045, which required every redevelopment agency to make a payment to the
Educational Revenue Augmentation Fund ("ERAF"). Agencies that paid are permitted to
extend, by one year, the time limit on the effectiveness of the plan and the time limit on the
receipt of tax increment funds. In 2003-2004 the Huntington Beach Redevelopment Agency
paid into the Educational Revenue Augmentation Fund (ERAF). By adopting this Ordinance,
the Huntington Beach Redevelopment Plan is amended to extend these limitations.
Funding Source: Not Applicable
Recommended Action: Motion to:
Adopt Ordinance .37g3_ amending the Southeast Coastal Plan for the Southeast Coastal
Project Area extending the Plan effectiveness deadline, prepayment of indebtedness
deadline and Tax Increment receipt deadline pursuant to SB 1045
Alternative Action(s):
Do not approve the Ordinance.
Ord. No. 3793
STATE OF CALIFORNIA )
COUNTY OF GRANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, JOAN L. FLYNN, the duly elected,qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City,do hereby
certify that the whole number of members of the City Council of the City of Huntington
Beach is seven;that the foregoing ordinance was read to said City Council at a regular
meeting thereof held on November 5,2007 and was again read to said City Council at a
regular meeting thereof held on November 19,2007, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
I,Joan L.Flynn,CITY CLERK of the City of Huntington
Beach and ex-officio Clerk of the City Council,do hereby
certify that a synopsis of this ordinance has been
published in the Huntington Beach Fountain Valley
Independent on November 29,2007.
In accordance with the City Charter of said City
Joan L. Flynn, Ci . Clerk C Clerk and ex-officio 67ferk
Deputy city Clerk of the City Council of the City
of Huntington Beach, California
RCA ROUTING; SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Adopt Ordinance to amend the Southeast Coastal
Redevelopment Plan Pursuant to SB 1045
COUNCIL MEETING DATE: November 5, 2007
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached
Not Applicable ❑
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Applicable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Applicable
Bonds (If applicable) Attached El
Not Applicable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Applicable ❑
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED'
Administrative Staff ( ) )
Deputy City Administrator Initial ) )
City Administrator Initial ) )
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space Far City;Clerk's Use
RCA Author: Runzel
Huntington Beach Independent has been adjudged a newspaper of general
circulation in Huntington Beach and Orange County by Decree of the Superior
Court of Orange County,State of California,under date of Aug. 24, 1994,case
A50479.
PROOF OF
]PUB LICATIOI'Jq
STATE OF CALIFORNIA ) I
CITY OF HUNTINGTON BEACH
SS. LEGAL NOTICE
COUNTY OF ORANGE ) i Adopted by the City Council
on NOVEMBER 19,2007
am the Citizen of the United States and a CITY
ORDINANCE OF THE!
CITY COUNCIL'OF THEj
TON
resident of the County aforesaid; I am over CITY H, CALIFORNIA
1
BEACH, CALIFORNIA,!
the age of eighteen years and not a party AMENDING THE RE !!
VELOPMENT PLAN FOR!!
to or Interested in the below entitled matter. THE S 0 COASTAL R T H E A EDEVELOPP-'
MENT PROJECT AREA
am a principal clerk of the HUNTINGTON EXTENDING THE, PLAN
EFFECTIVENESS DEAD
BEACH INDEPENDENT, a newspaper of INE, RDNESSENT of
general circulation, printed and published in LINE AND TAX INCRE-
MENT RECEIPT DEAD-
the City of Huntington Beach, County of LINE PURSUANT TO;SB
Oran g e, State of California, and the SYNOPSIS: p
AS A COMPONENT OF
004
attached Notice is a true and complete copy STHE Y TATE-BUDGEOT, 2TTHE
as was rinted and ublished on the LEGISLATURE ADOPTED
p p SB 1045, WHICH RE-
following dates). QUI RED EVERY REDE--
VELOPMENT AGENCY TO
MAKE ,A PAYMENT, TO
THE EDUCATIONAL REV-
ENUE, AUGMENTATION
FUND (ERAF)..AGEN,
LIES THAT PAID ARE
PERMITTED TO EXTEND,,
BY ONE YEAR,THE TIME
LIMIT ON.THE EFFEC
NOVEMBER 2 9 2 0 0 7 AN
AIVENESS OF ND THE ME LIMTHE IT
THE RECEIPT OF TAX
INCREMENT FUNDS. IN
2003-2004 .THE HUN-
TINGTON fBEACH REDE-
`VELOPMENT ._AGENCY
I PAID INTO THE ERAF.BY
ADOPTING AN IORDI-
I NANCE, THE HUNTING-
;TON BEACH REDEVEL-,
,OPMENT PLAN IS
;AMENDED TO EXTEND
THESE LIMITATIONS.
declare under penalty of perjury that the PASSED AND ADOPTED,
by the City' Council of
nton
foregoing is true and correct. Bea h�fyatf a u regular'
meeting held November
19, 2007 by the follow-,
ing roll call vote:
,AYES: Bohr, Carchio,
Cook, Coerper, Green„
Executed on NOVEMBER 2 9, 2 0 0 7 Hansen,Hardy
NOES:None-
at Huntington Beach, California ABSTAIN:None
-ABSENT:None
THE FULL TEXT OF THE(
ORDINANCE IS AVAIL
:ABLE IN. THE CITY
CLERK'S OFFICE.
This ordinance is effec-�
tive 30 days afterl
Signature +adoptio. , , h
CITY OF
HUNTINGTON BEACH J
2000 MAIN STREET
HUNTINGTON BEACH,
CA 92648
714-536-5227
JOAN L.FLYNN;
CITY,CLERK
Published Huntington.
Beach Independent No
vember 29,2007115-157
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 11/5/2007 DEPARTMENT ID NUMBER: ED 07-46
Analysis:
As a component of the FY 2003-2004 State budget, the Legislature adopted SB 1045, which
required every redevelopment agency to make a payment to the Educational Revenue
Augmentation Fund ("ERAF"). Pursuant to SB 1045, agencies that paid are permitted to
extend, by one year, the time limit on the effectiveness of the plan and the time limit on the
receipt of tax increment funds. The Huntington Beach Redevelopment Agency made an
ERAF payment of $348,157 in 2003-2004.
This amendment is exempt from the public hearing and noticing requirements of Section
333354.6, Article 12 (commencing with section 33450).
Upon adoption of this Ordinance, the Southeast Coastal Project Area's plan effectiveness
and debt repayment will be changed to:
Adoption Termination Plan
Area Adoption Date Date Effectiveness Debt Repayment
Southeast Coastal Ord.3561 6/17/2002 6/17/2032 6/17/2033 6/17/2048
By adopting this Ordinance, the Southeast Coastal Redevelopment Plan is amended to
extend these limitations.
Strategic Plan Goal:
Financial — Create long-term financial strategies for funding the backlog of capital projects
and maintenance requirements, and ensuring sufficient reserves to withstand major revenue
fluctuations in order to endure continuation of city services during economic downturns.
Environmental Status: Not Applicable
Attachments :
City 01617-141
'PqgeJIftn• ® Deserit)tion
1. Kane, Balimer& Berkman Memorandum dated September 25, 2007
2. Ordinance 3793 to amend the Southeast Coastal
Redevelopment Plan, extending the plan effectiveness deadline,
payment of indebtedness deadline and tax increment receipt
Pursuant to SB 1045.
-2- 10/24/2007 7:41 AM
ATTACHMENT # 1
f
KANE, BALLMER & BERKMAN
A LAW CORPORATION
515 SOUTH FIGUEROA STREET,SUITE 1850
LOS ANGLES,CALIFORNIA 90071
TELEPHONE(213)617-0480
FAX(213)625-0931
MEMORANDUM
TO: Leonie Mulvihill, Esq.
City of Huntington Beach, Office of the City Attorney
FROM: Murray O. Kane and Davey T. Kim
DATE: September 25, 2007
RE: SB 1045
FILE: 150-1
SB 1045
In 1992, the State Legislature enacted Educational Revenue Augmentation Funds
("ERAF") to reduce the State's obligations to fund education costs and reduce a portion of
the State's budget shortfall. ERAF reallocates a portion of property tax revenues due local
governments (counties, cities, special districts, and redevelopment agencies) to fund certain
educational costs, thereby reducing revenues allocated from the State General Fund to fund
school districts. As a component of the FY 2003-2004 State budget, the Legislature
adopted SB 1045, which required every redevelopment agency to make an ERAF payment
to the applicable County Auditor for the 2003-2004 Fiscal Year. SB 1045 contains a
substantial one-time cut of$135 million in redevelopment funds that will be done as an
ERAF shift in FY 2003-04. SB 1045 took effect September 1, 2003.
SB 1045 also contains a provision that will permit redevelopment agencies to extend,by
one year, the time limit on the effectiveness of redevelopment plans and the time limit on
the receipt of tax increment funds for the repayment of indebtedness.
For redevelopment projects for which a final redevelopment plan was adopted on or after
January 1, 1994 and to amendments that added territory and that were adopted on or after
January 1, 1994, SB 1045 amends Health and Safety Code Section 33333.2 to add the
following new provision:
"(c) When an agency is required to make a payment pursuant to Section 33681.9,
the legislative body may amend the redevelopment plan to extend the time limits required
pursuant to paragraphs (2) and (3) of subdivision (a) by one year by adoption of an
ordinance. In adopting this ordinance, neither the legislative body nor the agency is
1
required to comply with Section 33354.6, Article 12 (commencing with Section 33450) , or
any other provision of this part relating to the amendment of redevelopment plans."
For redevelopment projects for which a final redevelopment plan was adopted before
January 1, 1994 and to amendments that added territory and that were adopted before
January 1, 1994, SB 1045 amends Health and Safety Code Section 33333.6(e)(2) to add the
following new provision:
"(C) When an agency is required to make a payment pursuant to Section 33681.9,
the legislative body may amend the redevelopment plan to extend the time limits required
pursuant to paragraphs (a) and (b) by one year by adoption of an ordinance. In adopting an
ordinance pursuant to this subparagraph, neither the legislative body nor the agency is
required to comply with Section 333354.6, Article 12 (commencing with Section 33450) ,
or any other provision of this part relating to the amendment of redevelopment plans,
including, but not limited to, the requirement to make the payment to affected taxing
entities required by Section 33607.7."
Thus, a redevelopment agency may add one year to the otherwise applicable time limit on
the effectiveness of a redevelopment plan, and one year to the otherwise applicable time
limit on the receipt of tax increment funds for the repayment of indebtedness, simply by
adopting an ordinance amending the redevelopment plan. There are no other provisions of
the Community Redevelopment Law that would apply to the process for adopting such an
ordinance.
Please see the following tables for analysis of how SB 1045 would work in relations to
Merged Redevelopment Project Area and Southeast Coastal Redevelopment Project Area,
upon adoption of the SB 1045 ordinances:
A. Merged Redevelopment Project Area
Sub-Area Adoption Adoption Date Termination Date Plan Effectiveness Debt Repayment
Yorktown Lake Ord. 2576 9/20/82 9/20/22 9/20/23 9/20/33
Talbert-Beach Ord. 2577 9/20/82 9/20/22 9/20/23 9/20/33
Original Main Pier Ord. 2578 9/20/82 9/20/22 9/20/23 9/20/33
Oakview Ord. 2582 11/1/82 11/1/22 l l/l/23 1 i/l/33
Added Main-Pier Ord. 2634 9/6/83 9/6/23 9/6/24 9/6/34
Huntington Center Ord. 2743 11/26/84 11/26/24 11/26/25 11/26/35
B. Southeast Coastal Redevelopment Project Area
Project Area Adoption Adoption Date Termination Date Plan Effectiveness Debt Repayment
Southeast Coastal Ord. 3561 6/17/02 6/17/32 6/17/33 6/17/48
Enclosed please find the draft SB 1045 Ordinances for the Merged Redevelopment Project
Area and Southeast Coastal Redevelopment Project Area for your review and use.
2
ATTAC H M E N T #2
ORDINANCE NO. 3793
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH, CALIFORNIA, AMENDING THE
REDEVELOPMENT PLAN FOR THE SOUTHEAST COASTAL
REDEVELOPMENT PROJECT AREA EXTENDING THE PLAN
EFFECTIVENESS DEADLINE, REPAYMENT OF INDEBTEDNESS
DEADLINE AND TAX INCREMENT RECEIPT DEADLINE
PURSUANT TO SB 1045.
WHEREAS, the City Council of the City of Huntington Beach ("City Council")
activated the Redevelopment Agency of the City of Huntington Beach ("Agency") on
March 1, 1976; and
WHEREAS, pursuant to Ordinance No. 3561, adopted on June 17, 2002, the City
Council approved and adopted a redevelopment plan for the Southeast Coastal
Redevelopment Project Area (the redevelopment plan for the Southeast Coastal
Redevelopment Project Area is hereinafter referred to as the"Redevelopment Plan"); and
WHEREAS, California Health and Safety Code Section 33333.6 applies to every
redevelopment plan adopted on or before December 31, 1993; and
WHEREAS, the Redevelopment Plan was adopted on or after January 1, 1994;
and
WHEREAS, pursuant to California Health and Safety Code Section
33333.2(a)(2), the Redevelopment Plan contains a time limit for effectiveness of the
Redevelopment Plan for the Southeast Coastal Redevelopment Project Area; and
WHEREAS, pursuant to California Health and Safety Code Section
33333.2(a)(3), the Redevelopment Plan contains a time limit for the payment of
indebtedness and receipt of property taxes for the Southeast Coastal Redevelopment
Project Area; and
WHEREAS, the California State Legislature has enacted SB 1045, making
various amendments to the Community Redevelopment Law (California Health and
Safety Code Sections 33000 et seq.), which was chaptered as Chapter 260 and became
effective on September 2, 2003; and
WHEREAS, California Health and Safety Code Section 33333.2(c), as amended
by SB 1045, provides that when an agency is required to make a payment pursuant to
California Health and Safety Code Section 33681.9, the legislative body may amend the
redevelopment plan to extend the time limits required pursuant to paragraphs (2) and (3)
of subdivision (a) of California Health and Safety Code Section 33333.2 by one year by
adoption of an ordinance, without the necessity of compliance with California Health and
Safety Code Section 33354.6 or Article 12 of the Community Redevelopment Law
1
Ordinance No. 3793
(commencing with Section 33450) or any other provision relating to amendments,
including, but not limited to, the requirement to make payments to affected taxing entities
required by California Health and Safety Code Section 33607.7; and
WHEREAS, the Agency was required to make a payment pursuant to Health and
Safety Code Section 33681.9; and
WHEREAS, the Agency and the City Council of the City of Huntington Beach
desire to extend by one year the time limit on the effectiveness of the Redevelopment
Plan for the Southeast Coastal Redevelopment Project Area and the time limit for paying
indebtedness and receiving property taxes for the Southeast Coastal Redevelopment
Project Area.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The City Council hereby finds and determines that all of the
foregoing recitals are true and correct.
Section 2. Amendment of Time Limits. In accordance with California Health
and Safety Code Section 33333.2(c), and notwithstanding any other provision in the
Redevelopment Plan, the City Council hereby amends the Redevelopment Plan as stated
herein by adoption of this Ordinance, and establishes the following limitations for the
Southeast Coastal Redevelopment Project Area:
(A) Plan Effectiveness. The term of plan effectiveness for the Southeast
Coastal Redevelopment Project Area shall expire on June 17, 2033.
(B) Repayment of Indebtedness; Receipt of Property 'faxes. Subject to the
provisions of paragraph (3) of subdivision (a) of Section 33333.2 of California Health
and Safety Code, no indebtedness shall be repaid from the division and allocation of
taxes to the Agency from the Southeast Coastal Redevelopment Project Area beyond
fifteen years from the date of termination of the effectiveness of the Redevelopment Plan
for the Southeast Coastal Redevelopment Project Area, or June 17, 2048.
Section 3. Application. The limitations established by this Ordinance may
only be amended in the manner required and to the extent permitted by law.
Section 4. Certification and Publication. The City Clerk is hereby ordered
and directed to certify the passage of this Ordinance and to cause the same to be
published in a newspaper of general circulation, published and circulated in the City of
Huntington Beach.
Section 5. Partial Invalidity. If any part of this Ordinance is held to be
invalid for any reason, such decision shall not affect the validity of the remaining portion
of this Ordinance, and the City Council hereby declares that it would have passed the
remainder of this Ordinance if such invalid portion thereof had been deleted.
2
Ordinance No. 3793
Section 6. Effective Date. This Ordinance shalt be in full force and effect
thirty(30) days after the second reading.
PASSED, APPROVED, AND ADOPTED this 19th day of November , 2007.
THE CITY OF HUNTINGTON BEACH
� or
ATTEST: APPROVED AS TO FORM:
qlm� o5
y Clerk ja ity Attorney
REVIEWED AND APPROVED: INITIATED AND APPROVED:
�Ltiv�
Director of Ec mic Development /City Adm nistrator
3