HomeMy WebLinkAboutResolution - RDA 11-14 STATE OF CALIFORNIA ) RESOLUTION NO. RDA 11-14
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN JACINTO CONDITIONALLY REDUCING
ITS ALLOCATION TO THE LOW AND MODERATE INCOME
HOUSING FUND FOR FISCAL YEAR 2011-12AND MAKING
CERTAIN FINDINGS AND DETERMINATIONS
WHEREAS, pursuant to the Community Redevelopment Law (Health and Safety
Code§ 33000, et seq.) ("CRL"), the City Council of the City of San Jacinto ("City") created
the Redevelopment Agency of the City of San Jacinto ("Agency") to serve as the
redevelopment agency within the City; and
WHEREAS, the Agency has been responsible for implementing the Redevelopment
Plans for the San Jacinto and Soboba Springs Redevelopment Projects covering certain
properties within the City; and
WHEREAS, Health and Safety Code Sections 33334.2 and 33334.3 require every
redevelopment agency to deposit 20 percent of taxes allocated to the agency pursuant to
Health and Safety Code Section 33670 ("Tax Increment") in a Low and Moderate Income
Housing Fund ("Housing Fund") for the purpose of increasing, improving and preserving
the community's supply of low and moderate income housing; and
WHEREAS, as part of the 2011-2012 State budget bill, companion bills AB 1 X 26
and AB 1 X 27 require that each agency be dissolved unless the community that created it
enacts an ordinance committing it to participate in an "Alternative Voluntary
Redevelopment Program," in order to enable a redevelopment agency within that
community to remain in existence and carry out the provisions of the CRL; and
WHEREAS, the City adopted an urgency version of the Continuation Ordinance
(Ordinance No. 11-10) on July 19, 2011 . The City also held a first reading of a regular
version of the Continuation Ordinance (Ordinance No. 11-11) on July 19, 2011 and a
second reading on August 16, 2011; and
WHEREAS, participation in the Alternative Voluntary Redevelopment Program
requires the City to remit specified annual amounts to the county auditor-controller
("Community Remittance"); and
WHEREAS, the California Director of Finance has notified the City that its
Community Remittance for Fiscal Year 2011-2012 is Two Million Two Hundred Thirty-One
Thousand Six Hundred Fifty Dollars ($2,231,650); and
WHEREAS, a Petition for Writ of Mandate was filed in the Supreme Court of the
State of California on July 18, 2011 (California Redevelopment Association, et at. v. Ana
24438.311000 6U44ss. 3
Matosantos, et al., Case No. 5194861 ), challenging the constitutionality of AB 1 X 26 and
AB 1 X 27 on behalf of cities, counties and redevelopment agencies and requesting a stay
of enforcement of AB 1X 26 and AB 1X 27 pending the Supreme Court's determination of
the constitutionality of AB 1 X 26 and AB 1 X 27; and
WHEREAS, on August 11, 2011, the Supreme Court agreed to take the case and
issued an order for the immediate stay of enforcement of AB 1X 26 in part, which
suspended all new redevelopment activity, and AB 1X 27 in its entirety, such that the City
and the Agency cannot currently pursue new redevelopment activity under the Alternative
Voluntary Redevelopment PRogram; and
WHEREAS, on August 17, 2011, the Supreme Court modified its order to clarify that
Health and Safety Code Sections 34161 through 34169.5, enacted by AB 1 X 26, and
Health and Safety Code Section 34194(b)(2), enacted by AB 1 X 27, are not stayed
("Court's Stay'); and
WHEREAS, the City and the Agency conditionally entered into that certain
Community Remittance Funding Agreement, dated as of September 20, 2011 ("Funding
Agreement"), pursuant to Health and Safety Code Section 34194.2, as enacted by AB 1 X
27, whereby the Agency agreed to transfer a portion of its annual Tax Increment each
fiscal year to the City, in an amount not to exceed the amount of the City's Community
Remittance payable for such fiscal year, beginning with Fiscal Year 2011-2012; and
WHEREAS, because Health and Safety Code Section 34194.2 is stayed by the
.� Court's Stay, the Funding Agreement is only effective on the condition that the Supreme
Court orders that the Court's Stay be lifted or modified in a manner that permits the Agency
and the City to enter into the Funding Agreement to establish a yearly obligation of the
Agency to transfer Tax Increment to the City on the condition that the Agency's transferof
Tax Increment and the City's payment of the Community Remittance will be made only if
there is a final determination that AB 1 X 26 and AB 1 X 27 are constitutional and the
Ordinance electing to participate in the Alternative Voluntary Redevelopment Program is
valid and effective for such purpose or later ratification or re-adoption of such Ordinance by
the City or adoption of a new ordinance by the City and, in each case, such action is
effective to allow the City and the Agency to proceed pursuant to the Alternative Voluntary
Redevelopment Program; and
WHEREAS, for Fiscal Year 2011-2012, Health and Safety Code Section 34194.3,
as enacted by AB 1 X 27, authorizes a redevelopment agency to be exempt from making
the full allocation required to be made to the agency's Housing Fund, if the agency finds
that there are insufficient other moneys to meet the agency's debt and other obligations,
current priority program needs, or the agency's obligations under the Funding Agreement;
and
WHEREAS, because Health and Safety Code Section 34914.3 is also stayed by the
Court's Stay, the Agency desires to make the findings required in Health and Safety Code
Section 34194.3 and reduce its allocation of Tax Increment to the Housing Fund for Fiscal
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Year 2011-12 on the following conditions: (1) the Court's Stay is lifted or modified in a
manner that permits the Agency and the City to enter into the Funding Agreement; (2) a
final determination is made that AB 1 X 26 and AB 1 X 27 are constitutional so that the
Agency's transfer of Tax Increment to the City and the City's payment of the Community
Remittance can be made; and (3) the Ordinance electing to participate in the Alternative
Voluntary Redevelopment Program is valid and effective for such purpose or later
ratification or re-adoption of such Ordinance by the City or adoption of a new ordinance by
the City and, in each case, such action is effective to allow the City and the Agency to
proceed pursuant to the Alternative Voluntary Redevelopment Program; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, BE IT RESOLVED,determined and ordered by the Governing
Board of the Redevelopment Agency of the City of San Jacinto ("Governing Board") as
follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Finding of Insufficient Other Moneys. Upon consideration of the facts
set forth in the staff report accompanying this Resolution and other written and oral
evidence presented to the Agency, the Agency finds that there are insufficient other
moneys to meet the Agency's debt and other obligations, current priority program needs,
and the Agency's obligations under the Funding Agreement, unless the Agency is able to
use the Tax Increment that would otherwise be allocated to the Agency's Housing Fund in
Fiscal Year 2011-2012 to make payments to the City pursuant to the Funding Agreement.
Section 3. Reduction of Housing Fund Allocation. The Agency hereby
determines that the Agency must reduce the allocation of Tax Increment to be made to the
Agency's Housing Fund for Fiscal Year 2011-12 by Seven Hundred Thirty-One Six
Hundred Fifty Dollars ($731,650) (the "Housing Allocation Reduction")in orderto fund the
required payments pursuant to the Funding Agreement.
Section 4. Authorization to Execute Documents. The Agency hereby authorizes
the Agency Executive Director, or his or her designee, to take such actions as are
necessary and appropriate to implement the Housing Allocation Reduction for Fiscal Year
2011-12.
Section 5. Conditional Effectiveness. This Resolution shall become effective only
upon the occurrence of the following conditions: (1)the Court's Stay is lifted or modified in
a manner that permits the Agency and the City to enter into the Funding Agreement; (2) a
final determination is made that AB 1 X 26 and AB 1 X 27 are constitutional so that the
Agency's transfer of Tax Increment to the City and the City's payment of the Community
Remittance can be made; and (3) the Ordinance electing to participate in the Alternative
Voluntary Redevelopment Program is valid and effective for such purpose or later
24478.300W 687445j. ; 3
ratification or re-adoption of such Ordinance by the City or adoption of anew Ordinance by
the City and, in each case, such action is effective to allow the City and the Agency to
proceed pursuant to the Alternative Voluntary Redevelopment Program .
Section 6. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Resolution which can be given effect without the invalid
provision or application, and to this end the provisions of this Resolution are severable.
The Agency hereby declares that it would have adopted this Resolution irrespective of the
invalidity of any particular portion thereof.
Section 7. Certification. The Agency Secretary shall certify to the adoption of this
Resolution.
Section S. Effective Date. This Resolution shall become effective upon its
adoption.
PASSED, APPROVED AND ADOPTED this 20th day of September, 2011, by the
following vote:
Ayes: Bartel, Di Memmo, Kotyuk, Ledezma, Miller
Nays: None
Absent: None
lo" Abstain: None
CityofSan acinto Redevelopment Agency
- 1
Scott Miller, Chairman
AT'eEST:
Richard Miller, Agency Secretary
APPROVED AS TO FORM:
Best Best & Krieger, LLP
Jeffrey . Ballinger;-Agency Counsel
24438 aOWM 68744ss. 1 4
CERTIFICATION
1, Richard Miller, Secretary of the City of Redevelopment Agency of the City of San
... Jacinto, do hereby certify that the foregoing Resolution RDA 11-14 was regularly
introduced and adopted by the Governing Board of the Redevelopment Agency of the City
of San Jacinto, at a regular meeting thereof held on the 20th day of September, 2011.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal
of the City of San Jacinto, California this 20th day of September, 2011.
yj�z ,
Richard Miller, Agency Secretary
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