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HomeMy WebLinkAbout050304 Pymt Edu Revenue Augmen-Ordinance 6 Rdvlp Plan'REQUEST FOR COUNCIU AGENCY ACTION l• f�� MEETING DATE: `V v CLERK OF COUNCIL USE ONLY: MAY 3, 2004 PAYMENT TO EDUCATIONAL REVENUE AUGMENTATION FUND AND AN ORDINANCE AMENDING THE SIX REDEVELOPMENT PLANS TO EXTEND CERTAIN TIME LIMITS J V `• CITY MANAGER E UTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION L. Adopt an ordinance extending time redevelopment plans and extending increment to repay indebtedness by APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER limits on the effectiveness of the the time limit on the use of tax one year. 2. Approve an appropriation adjustment transferring funds from the Low and Moderate - Income Housing Fund to redevelopment project area funds to make the necessary payment to the County Educational Revenue Augmentation Fund as required by legislation implementing the California State Budget for FY 2003 -2004. COMMUNITY REDEVELOPMENT AGENCY ACTION Adopt a resolution finding that borrowing $1,830,569 in Housing Set -Aside Funds to make the FY 2003 -2004 payment to the Educational Revenue Augmentation Fund is necessary due to the insufficiency of other revenue sources. 3 Payment to ERAF and an Ordinance Amending the Six Redevelopment Plans co Extend Certain Time Limits May 3, 2004 Page 2 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION 1. Recommended that the City Council: a) Adopt an ordinance extending time limits on the effectiveness of the redevelopment plans and extending the time limit on the use of tax increment to repay indebtedness by one year. b) Approve an appropriation adjustment transferring funds from the Low and Moderate - Income Housing Fund to redevelopment project area funds to make the necessary payment to the County Educational Revenue Augmentation Fund as required by legislation implementing the California State Budget for FY 2003 -2004. 2. Recommended that the Community Redevelopment Agency: Adopt a resolution finding that borrowing $1,830,569 in Housing Set - Aside Funds to make the FY 2003 -2004 payment to the Educational Revenue Augmentation Fund is necessary due to the insufficiency of other revenue sources. By a vote of 5:0 (Rodriguez, Turner absent) at its Regular Meeting of April 20, 2004. As a result of Senate Bill 1045 (SB 1045) implementing the California State Budget for FY 2003 -2004, the Community Redevelopment Agency is required to make a $1,830,569 payment to the County Educational Revenue Augmentation Fund (ERAF) by May 10, 2004. The legislation allows the Agency to borrow up to 50 percent of the amount required to be allocated to the Low and Moderate - Income Housing Fund during FY 2003 -2004 to make this payment. The funds may be borrowed for up to ten years. As a condition of borrowing the funds from the Low and Moderate - Income Housing Fund, the Agency must adopt a resolution making a finding that there are insufficient other moneys to make the required payment. Payment to ERAF and an Ordinance Amending the Six Redevelopment Plans co Extend Certain Time Limits May 3, 2004 Page 3 The legislation implementing the State's FY 2003 -2004 budget authorized the County Auditor /Controller to withhold property tax revenue from the City's General Fund to the extent that the $1,830,569 payment is not made by the Community Redevelopment Agency before May 10, 2004. SB 1045 also included a provision that allows the legislative body to adopt an ordinance to amend the redevelopment plan extending the time limit on the use of tax increment to repay indebtedness and extend the plan effectiveness by one year for a redevelopment agency making an ERAF payment. The City of Santa Ana has six redevelopment project areas: Central City, Inter -City, North Harbor, South Harbor, South Main and Bristol Corridor. The following time limits are proposed for amendment: TIME LIMIT; ON TIME LIMIT ON TIME LIMIT ON TIME LIMIT ON PLAN PLAN PLAN RECEIPT OF RECEIPT OF EFFECTIVENESS EFFECTIVENESS TAX INCREMENT TAX INCREMENT (CURRENT (PROPOSED (CURRENT (PROPOSED DATE) DATE) DATE) DATE)' Central City July 2, 2013 July 2, 2014 July 2, 2023 July 2, 2024 Inter -City July 6, 2022 July 6, 2023 July 6, 2032 July 6, 2033 North Harbor July 6, 2022 July 6, 2023 July 6, 2032 July 6, 2033 South Harbor July 6, 2022 July 6, 2023 July 6, 2032 July 6, 2033 South Main July 6, 2022 July 6, 2023 July 6, 2032 July 6, 2033 Bristol December 4, December 4, December 4, December 4, 2029 2030 2039 2040 Payment to ERAF and an Ordinance Amending the Six Redevelopment Plans ..o Extend Certain Time Limits May 3, 2004 Page 4 FISCAL IMPACT Agency approval of the appropriation adjustment and resolution will enable staff to make the $1,830,569 payment to the County Auditor for deposit into the ERAF on or before May 10, 2004. The amendment of these plans will enable the Community Redevelopment Agency to collect tax increment for one additional year. The actual amount received will depend on the valuation of property within the project area in any given fiscal year. Jo P. Reekstin Executive Director JPR /NTE /mlr APPROVED AS TO FUNDS AND ACCOUNTS: Rod R. Coloma Executive Director Finance & Management Services Agency Actions \2004CC \JT CC- CRA- PmtERAF &OrdAmendSixRedevPla s 5 -3 -04 4/27/04 LES ORDINANCE NO. NS- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA EXTENDING THE TIME LIMIT OF THE EFFECTIVENESS OF THE REDEVELOPMENT PLANS FOR ALL SIX OF THE PROJECT AREAS; EXTENDING THE TIME LIMIT FOR PAYMENT OF INDEBTEDNESS AND RECEIPT OF PROPERTY TAXES FOR EACH OF THE SIX REDEVELOPMENT PROJECT AREAS; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: The City Council of the City of Santa Ana hereby, finds, determines and declares as follows: A. The Community Redevelopment Agency for the City of Santa Ana ( "Agency ") is a community redevelopment agency duly created, established, and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part I of Division 24, commencing with Section 33000 of the Health & Safety Code of the State of California) ( "CRL "). B. The Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plan for each of the six redevelopment project areas (as described further below). C. Pursuant to California Health and Safety Code section 33333.6, a time limit of the effectiveness of the Redevelopment Plans and a time limit on the period of repayment of indebtedness and receipt of property taxes under the Redevelopment Plan have been established. D. By and through Senate Bill 1045, enrolled on August 19, 2003, and chaptered on September 2, 2003 ( "SB 1045 "), Health and Safety Code section 33333.6 was amended to provide that as to Redevelopment Plans originally adopted before January 1, 1994, and when such redevelopment agency is required to make a payment to the Educational Revenue Augmentation Fund in fiscal year 2003 -2004 pursuant to CRL section 33681.9, the City Council, as the legislative body of the Agency, may enact an ordinance to extend by one year the time limit on the effectiveness of the Redevelopment Plan and the time limit for payment of indebtedness and receipt of property taxes under the Redevelopment Plan, each and respectively. E. SB 1045 further provides that such ordinance may be adopted without compliance with the normal procedures for redevelopment plan amendments. F. The City Council desires to adopt this Ordinance to amend and extend certain time limitations of the Redevelopment Plan, as more particularly set forth below, in accordance with section 33333.6, as amended by SB 1045. G. The enactment of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code section 21000 et seq.) ( "CEQA ") because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. SECTION 2: As used in this Ordinance, the following definitions shall apply: Agency shall mean the Community Redevelopment Agency of the City of Santa Ana. Bristol Plan shall mean the Santa Ana Bristol Redevelopment Plan originally adopted by Ordinance No. NS -2039 on or about December 4, 1989; amended by Ordinance No. NS -2231 and NS -2234 on or about October 3, 1994; and Ordinance No. NS -2396 on or about August 2, 1999. Central City Plan shall mean the Santa Ana Central City Redevelopment Plan originally adopted by Ordinance No. NS -1173 on or about July 2, 1973, amended by Ordinance No. NS -1258 on or about June 2, 1975 ; Ordinance NS- 1877 on or about December 1, 1986; Ordinance No. NS -2234 on or about October 3, 1994; Ordinance No. NS -2290 on April 6, 1996; and, Ordinance No. NS -2396 in August of 1999. Community Redevelopment Law shall mean Part 1 (commencing with Section 33000) of Division 24 of the California Health & Safety Code, as amended from time to time. Inter City Plan shall mean the Santa Ana Inter City Redevelopment Plan originally adopted by Ordinance No. NS -1636 on or about July 6, 1982, amended by Ordinance No. NS -2234 on or about October 3, 1994; Ordinance NS -2289 on or about May 6, 1996; and, Ordinance NS -2396 in August of 1999. North Harbor Plan shall mean the Santa Ana North Harbor Boulevard Redevelopment Plan originally adopted by Ordinance No. NS -1637 on or about July 6, 1982, amended by Ordinance No. NS -2234 on or about October 3, 1994; 8 45 2 Ordinance NS -2396 in August of 1999; and, Ordinance NS -2641 on January 20, 2004. South Harbor Plan shall mean the Santa Ana South Harbor Boulevard /Fairview Street Redevelopment Plan originally adopted by Ordinance No. NS -1638 on or about July 6, 1982, amended by Ordinance No. NS -2167 on or about August 3, 1992; Ordinance No. NS -2234 on or about October 3, 1994; Ordinance NS -2396 in August of 1999; and, Ordinance NS -2641 on January 20, 2004. South Main Plan shall mean the Santa Ana South Main Street Redevelopment Plan originally adopted by Ordinance No. NS -1639 on or about July 6, 1982, amended by Ordinance No. NS -2234 on or about October 3, 1994; Ordinance No. NS -2256 adopted on or about July 17, 1995; Ordinance NS -2396 in August of 1999; and, Ordinance NS -2641 on January 20,2004. Tax increment shall mean property tax revenues allocated to the Agency pursuant to Section 333670 of the Community Redevelopment Law. Time limit on incurring indebtedness shall mean the expiration date of the time period during which the Agency may establish or incur loans, advances, and indebtedness to be paid with the proceeds of tax increment derived from the project area of a specified redevelopment plan, as described in subdivision (a) of Section 33333.6 of the Community Redevelopment Law, subject to all exceptions specified in the Community Redevelopment Law. Time limit on plan effectiveness shall mean the expiration date of the time period during which a specified redevelopment plan is effective, as described in subdivision (b) of Section 33333.6 of the Community Redevelopment Law, subject to all exceptions specified in the Community Redevelopment Law. Time limit on receipt of tax increment shall mean the expiration date of the time period during which the Agency may pay indebtedness and receive tax increment derived from the project area of a specified redevelopment plan, as described in subdivision (c) of Section 33333.6 of the Community Redevelopment Law, subject to all exceptions specified in the Community Redevelopment Law. SECTION 3: The current time limit on the effectiveness of each of the Redevelopment Plans is hereby extended by one year and the Agency is hereby authorized to act with respect to the Redevelopment Plan at any time during which each of the Redevelopment Plans is effective. SECTION 4: The current time limit on paying indebtedness or receiving property taxes pursuant to each of the Redevelopment Plans and CRL is hereby extended by one year (from the existing time limit as set forth below) and the 3 45 Agency is hereby authorized to act with respect thereto during such extended period. SECTION 5: If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. O (I i� � n�dL- I - fe ��.. '.� f. � f T a.� ev12��.. fiR . m { i � � i L e ' � ,Iw : . •.� x`f2r, x01- _ ?2g� ' .ug.� d m Central City Jul 4 July 2, 2023 .T.� 0C:�Y .n�2033 . ..r 2®OA4 l Inter-City J ul 6, 6, 2023 Jul 6, 2032 624 , July North Harbor July 6, 2022 July 6, 2023 Jul 6, 2032 Jul 6, 2033 out Harbor July 6, 2022 July 6, 2023 July 6, 2032 July 6, 2033 South Main July 6, 2022 Jul 6, 2023 July 6, 2032 July 6, 2033 Bristol Dec. 4, 2029 Dec. 4, 2030 Dec. 4, 2039 Dec. 4, 2040 SECTION 5: If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. O (I ADOPTED this day of APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By:_ Lisa E. Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers 2004. Miguel A. Pulido Mayor CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 5 12 I REQUEST FOR APPROPRIATION ADJUSTMENT Appropriation Adjustment No: 7 - J3 Date: April 20, 2004 Department: Community Development Agency TYPE OF ADJUSTMENT Transfer of Funds (No Council Action Required) Transfer of Funds (Council Action Required) Page 1 of 1 Council Action 19 I Approved: = Yes No Clerk of the Council From: VARIOUS To: VARIOUS Fund - Activity - Account Amount Fund - Activity - Account Amount 504- 508 - 6782 -1 $ 1,791,380 504 - 508 - 6782 -2 540 -01- 5990 -504 39,190 $ 1,830,570 $ 1,830,570 504 - 935 - 6800 -540 540 - 935 -6935 $ 1,830;570 $ 1,830,570 JUSTIFICATION FOR REQUEST: Transfer offundsfrom the South HarborLowandModerate Housing Fund (Fund 504) into the South Flarbor Redevelopment Project Area (Fund 540) to pay the County of Orange for the Educational Revenue Augmentation Fund (ERAF) as required by legislation implementing the CA State Budget for FY2003 -2004. The state legislation requiring the ERAF allow for the Agency to borrow from the Low and Moderate Housing Fund for up to 10 years. Department Head -91- V t1l WED AS T����O�7 FUNDS AND AC OUNTS: APPROVED: City Manager Date PREPARATION: Submit original and two copies to Director of Finance, who will assign control number and forward the three copies to the City Manager, City Manager will distribute copies showing designated action: ORIGINAL - Finance; DUPLICATE - department file; TRIPLICATE - City Manager. Prepare a fourth copy for the Clerk of the Council's file on requests that need Council action. 13 CS -886 14 04/26/04 RESOLUTION NO. CRA 2004 -07 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA MAKING THE FINDING THAT THE AGENCY MUST BORROW HOUSING SET ASIDE FUNDS IN ORDER TO MAKE THE 2003 -2004 PAYMENT TO THE EDUCATIONAL REVENUE AUGMENTATION FUND BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. As a result of Senate Bill 1045 (SB 1045) implementing the California State Budget for fiscal year 2003 -2004, the Community Redevelopment Agency ( "Agency ") is required to make a $1,830,569 payment to the County Educational Revenue Augmentation Fund ( "ERAF ") by May 10, 2004. B. The legislation allows the Agency to borrow up to fifty percent of the amount required to be allocated to the Low and Moderate Income Housing Fund during fiscal year 2003 -2004 in order to make this payment. The funds may be borrowed for up to ten years. C. As a condition of borrowing from the Low and Moderate Income Housing Fund pursuant to Health & Safety Code § 33681, the Agency must make a finding that there are insufficient other moneys to remit the required ERAF payment. D. The legislation implementing the State's fiscal year 2003 -2004 budget authorized the County Auditor /Controller to withhold property tax revenue from the City's general fund to the extent that the $1,830,569 payment is not made by the Agency by May 10, 2004. E. SB 1045 also includes a provision that allows the legislative body to adopt an ordinance to amend the redevelopment plan extending the time limit on the use of tax increment to repay indebtedness and extend the time limit on the use of tax increment to repay indebtedness and extend the plan effectiveness by one year for a redevelopment agency making an ERAF payment. Section 2. The Agency hereby finds that borrowing $1,830,569 from the Low and Moderate Income Housing funds is necessary due to the insufficiency of other revenue sources. Section 3. The Executive Director of the Agency is hereby authorized to take all necessary actions and to sign all documents and instruments necessary to make the $1,830,569 payment to the County Auditor for deposit into the Educational Revenue Augmentation Fund on or before May 10, 2004. 15 5 ADOPTED this day of APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel AYES: NOES: ABSTAIN: NOT PRESENT: Boardmembers: Boardmembers: Boardmembers: Boardmembers: 2004. Miguel A. Pulido Chair CERTIFICATION OF ATTESTATION AND ORIGINALITY 04/26/04 I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. CRA 2004 -07 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Secretary City of Santa Ana 16