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JWF 11/03/08 ORDINANCE NO. NS-2778 AN ORDINANCE OF THE CITY COUNCil OF THE CITY OF SANTA ANA AMENDING THE CENTRAL CITY, INTER- CITY AND BRISTOL REDEVELOPMENT PLANS OF THE CITY OF SANTA ANA TO ELIMINATE THE TIME LIMIT IN EACH PLAN FOR THE INCURRENCE OF DEBT. 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. California Health & Safety Code Section 33333.6(a) & (b), part of the Community Redevelopment law, was amended by Assembly Bill 1290 in 1993 to impose time limits on incurring debt, receipt of tax increment and effectiveness of the plan. The outside time limit for incurring debt under AB 1290 for plans adopted prior to 1994 was the later of 20 years after plan adoption or January 1, 2004. B. Senate Bill 211 (effective January 2002) permits the amendment of a pre- 1994 plan to completely delete the debt incurrence deadline, with the result that an agency can incur debt under such a plan up to the deadline for the effectiveness of the plan. C. The City of Santa Ana wishes to utilize the procedure set forth in California Health and Safety Code section 33333.6(e)(2)(B) to eliminate the date that debt can be incurred in three of its six redevelopment plans so that the Redevelopment Agency can incur new debt until the end of the active life of the each of these three project areas so that the Agency can continue to meet its long term goals and objectives. D. The City of Santa Ana is cognizant that under Health and Safety Code section 33607.7, by adopting this ordinance amending the redevelopment plans in order to eliminate the debt incurrence time limit, the Redevelopment Agency will be required to pay the statutory pass-through payments to each affected taxing entity with which the Agency does not already have a pre-1994 pass-through agreement. E. The Community Redevelopment Agency of the City of Santa Ana (the "Agency") is considering issuing approximately $88,000,000 in tax allocation bonds in early 2009 to restructure existing debt of the Agency as well as to generate additional bonds proceeds for Agency activities (the "2009 Tax Allocation Bonds"). Elimination of the debt incurrence time limit Ordinance No. NS-2778 Page 1 of 3