HomeMy WebLinkAboutResolution No. 11-R37RESOLUTION NO. 11-R37
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
AZUSA, CALIFORNIA CONDITIONALLY APPROVING AND
AUTHORIZING THE EXECUTION OF A COMMUNITY REMITTANCE
FUNDING AGREEMENT BY AND BETWEEN THE CITY OF AZUSA AND
THE AGENCY PROVIDING FOR THE TRANSFER OF TAX INCREMENT
REVENUE TO THE CITY IN AN AMOUNT NOT TO EXCEED THE
AMOUNT OF THE COMMUNITY REMITTANCE REQUIRED UNDER AB
1X 27
WHEREAS, pursuant to the Community Redevelopment Law (Health and Safety Code
sections 33000 et seg.), the City Council of the City of Azusa ("City") created the Redevelopment
Agency of the City of Azusa ("Agency") to serve as the redevelopment agency within the City; and
WHEREAS, the City Council of the City of Azusa ("City Council") approved and adopted
the Redevelopment Plan ("Redevelopment Plan") for the Merged Central Business District and West
End Redevelopment Project Area and the Ranch Center Project Area covering certain properties
within the City (the "Project Areas"); and
WHEREAS, as part of the 2011-2012 State budget bill, the California Legislature enacted,
and the Governor signed, companion bills AB 1X 26 and AB 1X 27, requiring that each
redevelopment agency be dissolved unless the community that created it enacts an ordinance
committing it to making certain payments; and
WHEREAS, specifically, AB 1X 26 prohibits agencies from taking numerous actions,
effective immediately and purportedly retroactively, and additionally provides that agencies are
deemed to be dissolved as of October 1, 2011; and
WHEREAS, AB 1X 27 provides that a community may 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, by enacting an ordinance
agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and
WHEREAS, on September 6, 2011, the City Council elected to participate in the Alternative
Voluntary Redevelopment Program by adoption of Ordinance No. 11-015 ("Ordinance"), stating the
City's election to participate in the program if California Health and Safety Code Section 34161 et
seq. and California Health and Safety Code Section 34192 et seq. are found to be constitutional; 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 Eight Hundred Sixty Thousand Nine Hundred Forty -Four
Dollars ($860,944); 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 al. v. Ana 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 IX 26 and AB 1 X
27 pending the Supreme Court's determination of the constitutionality of AB 1X 26 and AB 1X 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 IX 26 in part and AB 1 X 27 in its entirety; 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 1X 26, and Health and Safety
Code Section 34194(b)(2), enacted by AB 1X 27, are not stayed ("Court's Stay"); and
WHEREAS, California Health and Safety Code Section 34194.2 provides that the City may
enter into an agreement with the Agency, whereby the Agency will annually transfer tax increment
revenue to the City, in an amount not to exceed the amount of the Community Remittance for such
fiscal year, for the purpose of financing activities within the Project Areas related to the Agency's
goals ("Agreement"); and
WHEREAS, because California Health and Safety Code Section 34194.2 is stayed by the
Court's Stay, the Agency and the City desire to enter into this Agreement, 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 this Agreement; and
WHEREAS, the City reserves the right, whether any Community Remittance has been paid,
to challenge the legality of AB 1 X 26 and AB 1X 27; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, BE IT RESOLVED, ordered, and determined by the
Redevelopment Agency of the City of Azusa:
SECTION 1. Recitals. The Recitals set forth above are true and correct and incorporated
herein by reference.
SECTION 2. Finding. Upon consideration of the facts set forth in the staff report
accompanying this Resolution and other written and oral evidence presented to the Agency Board,
the Agency finds that the transfer of tax increment revenue from the Agency to the City for the
funding of the Community Remittance payment by the City will: (1) allow the Agency to remain in
existence and continue to act to accomplish the Agency's goals in the Project Areas and is in the best
interests of the health, safety and welfare of the City's residents; and (2) free the City from
committing general fund revenues or other City assets to pay the Community Remittance for any
fiscal year.
SECTION 3. Approval of Agreement. The Agency hereby conditionally approves the
Agreement, in substantially the form attached hereto as Exhibit A and incorporated herein by
reference. The Agreement shall be effective upon the Court's Stay being lifted or modified in a
manner that permits the Agency and the City to enter into the Agreement 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. The Agreement provides
that the Agency's obligation to transfer tax increment revenues to the City and the City's payment of
the Community Remittance will be conditioned upon: (1) a final determination that AB 1X 26 and
AB 1X 27 are constitutional; and (2) the Ordinance electing to participate in the Alternative
Voluntary Redevelopment Program being 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. The Agency authorizes and directs the Executive Director to
execute the Agreement on behalf of the Agency, subject to any minor clarifying, conforming and
technical changes as may be approved by Agency Counsel. The Executive Director is further
authorized and directed to take such actions and execute such documents as may be necessary to
carry out the obligations of the Agency under the Agreement.
SECTION 4. CEOA. The Agency finds, under Title 14 of the California Code of
Regulations, Section 15378(b)(4), that this Resolution is exempt from the requirements of the
California Environmental Quality Act ("CEQA") in that it is not a "project," but instead consists of
the creation and continuation of a governmental funding mechanism for potential future projects and
programs, and does not commit funds to any specific project or program. The Agency, therefore,
directs that a Notice of Exemption be filed with the County Clerk of the County of Los Angeles in
accordance with CEQA Guidelines.
SECTION 5. 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 6. Certification. The Agency Secretary shall certify to the adoption of this
Resolution.
SECTION 7. Effective Date. This Resolution shall become effective upon its adoption.
PASSED AND ADOPTED at a regular meeting of the Redevelopment Agency of
the City of Azusa on the 19`h day of September, 2011.
Jos3eh R. Rocha, Chairperson
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Redevelopment Agency of the City of Azusa at a regular meeting held on the 19'h day of September,
2011.
AYES:
AGENCY MEMBERS:
GONZALES, CARRILLO, MACIAS, HANK, ROCHA
NOES:
AGENCY MEMBERS:
NONE
ABSTAIN:
AGENCY MEMBERS:
NONE
ABSENT:
AGENCY MEMBERS:
NONE
s,
aeraendoza,
Exhibit A
Community Remittance Funding Agreement