HomeMy WebLinkAbout25B - AGMT - COOP AGMT BETWEEN COSA AND CRA ABX1 27REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 19, 2011
TITLE:
COOPERATIVE AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND THE
COMMUNITY REDEVELOPMENT AGENCY
PURSUANT TO ABX1 27
i
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 151 Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute the attached Cooperative
Agreement with the Community Redevelopment Agency (Agency), subject to non-substantive
changes approved by the City Manager and City Attorney.
DISCUSSION
On September 6, 2011, the City Council approved a Continuation Ordinance to allow the City the
option to "opt in" to the Voluntary Redevelopment Program pursuant to recently passed legislation.
In furtherance of the actions the City and Agency have taken to implement the provisions of the
legislation (ABX1 27), it is recommended by legal counsel that the proposed Cooperative
Agreement between the City and Agency be conditionally approved. This agreement will protect
the Agency's interests by allowing the required remittances to the state to be included in the
Statement of Indebtedness which is due October 1, 2011. This agreement will only become
operational if the Calfornia Supreme Court determines that ABX1 27 is constitutional.
Given that Santa Ana's redevelopment efforts significantly contribute to much-needed economic
and physical community revitalization, affordable housing development, and the general
enhancement of our city, it is recommended that the City and Agency continue to take the
necessary steps to implement ABX1 27.
25B-1
Cooperative Agreement Between City and Agency
Pursuant to ABX1 27
September 19, 2011
Page 2
FISCAL IMPACT
There is no additional fiscal impact associated with this action that was not previously described in
connection with the introduction of the Continuation Ordinance.
`"h 04, W- H at-, /10
Nancy T. E rds
Interim Exec ive Director
Community Development Agency
NTE/SG/mlr
Exhibit: 1. Cooperative Agreement
25B-2
COOPERATIVE AGREEMENT
This COOPERATIVE AGREEMENT ("Agreement") is entered into as of
2011 ("Date of Agreement"), by and between the CITY OF SANTA
ANA, a charter city and municipal corporation ("City") and the COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body, corporate
and politic ("Agency").
RECITALS
A. The Agency is a community redevelopment agency organized and existing under the
California Community Redevelopment Law, Health and Safety Code Sections 33000, et
seq. ("CRL") and has been authorized to transact business and exercise the powers of a
redevelopment agency pursuant to action of the City Council ("City Council") of the City
of Santa Ana.
B. The Agency receives and has available to it tax increment revenues in accordance with
and pursuant to CRL Section 33670(b) and Article XVI Section 16 of the California
Constitution ("Tax Increment").
C. Parts 1.8, 1.85 and 1.9 of Division 24 of the Health and Safety Code were added to the
CRL by ABXI 26 and ABX1 27, which measures purported to become effective
immediately. ABXI 26 and ABXI 27, which are trailer bills to the 2011-12 budget bills,
were approved by both houses of the Legislature on June 15, 2011 and signed by the
Governor on June 28, 2011.
D. Part 1.85 of the CRL ("Part 1.85") provides for the statewide dissolution of all
redevelopment agencies, including the Agency, as of October 1, 2011, and provides
thereafter for a successor agency to administer the existing obligations of the Agency and
otherwise wind up its affairs, with such actions as the successor agency may take subject
to the review and approval by an oversight committee.
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EXHIBIT 1
25B-3
E. Part 1.8 of the CRL ("Part 1.8") provides for the restriction of activities and authority of
the Agency in the interim period prior to dissolution to certain "enforceable obligations"
and provides for actions required for the general winding up of affairs, preservation of
assets, and certain other goals delineated in Part 1.8.
F. Part 1.9 of the CRL ("Part 1.9") provides that an Agency may continue in operation if a
city or county that includes a redevelopment agency adopts an ordinance agreeing to
comply with and participate in the Alternative Voluntary Redevelopment Program
established in Part 1.9 ("Program"). The City Council has enacted or concurrently with
this Conditional Agreement is enacting, an ordinance to comply with Part 1.9
G. Those cities or counties electing to participate in the Program, as a condition of its
redevelopment agency's continued existence and operation, are required to make certain
annual remittances ("Program Remittances") to the county auditor-controller pursuant to
Chapter 3 of Part 1.9, beginning with an larger upfront remittance for the 2011-2012
fiscal year ("First Remittance"), to be paid in two equal installments on January 15, 2012
and May 15, 2012.
H. The Agency will have sufficient funds and revenues to fund an amount equal to the
City's payment of the First Remittance and expects to have funds and revenues sufficient
to fund amounts equal to the subsequent annual remittances required by Part 1.9.
The City and Agency desire to enter into this Agreement pursuant to CRL Section
34194.2 whereby the Agency shall transfer portions of Tax Increment to the City in an
amount equal to the First Remittance, and thereafter to transfer amounts of Tax Increment
equal to any subsequent remittance which the City is required to make to the county
auditor-controller pursuant to the City's participation in the Program.
AGREEMENTS
The Agency shall be liable to City for the payment of the Program Remittances in
connection with the City's participation in the Program. The Agency agrees that no later
than fifteen (15) days prior to the date upon which the City shall be statutorily required to
make any full or partial payment of a Program Remittance, the Agency shall transfer
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EXHIBIT 1
25B-4
funds to the City in an amount equal to such payment; each such payment by the Agency
shall be referred to herein as a "Required Agency Payment" and, as such payments are
combined, "Required Agency Payments." Interest shall accrue on any unpaid balance of
the Required Agency Payments at an annual interest rate equal to the maximum rate
permitted by Section 53531 of the Government Code. Interest on amounts paid as
Required Agency Payments shall be deemed to begin accruing on the date upon which
the City makes any required Program Remittance to the county auditor-controller.
2. The Agency pledges revenues available to the Agency under Section 33670(b) of the
California Health & Safety Code ("Tax Increment") to repayment of its indebtedness to
the City hereunder; provided that such pledge is junior and subordinate to all outstanding
bonds of the Agency (including without limitation the Agency's obligations under the
following: $66,790,000 Tax Allocation Bonds [Merged Project Area], 2011 Series A,
$20,945,000 Tax Allocation Bonds [Santa Ana South Main Street Redevelopment
Project], 2003 Series A, and $34,145,000 Tax Allocation Bonds [Santa Ana South Main
Street Redevelopment Project], 2003 Series B, and all refundings thereof), any refunding
bonds issued by the Agency, and any additional bonds issued hereafter by the Agency.
The obligations of the Agency under this Agreement shall constitute an indebtedness of
the Agency within the meaning of Section 33670 et seq. of the Community
Redevelopment Law.
4. The City agrees to use the funds it receives pursuant to this Agreement in accordance
with the laws of the Unites States and the State of California, including the CRL, all as
applicable.
This Parties agree that this Agreement is conditionally entered; should the California
Redevelopment Association and League of California Cities prevail in their lawsuit
challenging the constitutionality of the legislation, this Agreement shall have no force or
effect.
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EXHIBIT 1
25B-5
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.
CITY OF SANTA ANA
By:
Paul Walters, Interim City Manager
ATTEST:
Maria Huizar, Clerk of the Council
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
By:
Nancy T. Edwards, Interim Executive Director
ATTEST:
Maria Huizar, Agency Secretary
APPROVED AS TO FORM:
By:
Lisa Storck, Assistant City Attorney/General Counsel
EXHIBIT 1
25B-6