011706 RESO CDA Amending Sec 10.5 Agency By-Laws

Home Browse Search

REQUEST FOR AGENCY ACTION Edonaon I., AGENCY BOARD MEETING DATE: JANUARY 17, 2006 TITLE RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY AMENDING SECTION 10.5 OF THE AGENCY'S BY —LAWS le e � I- AGENCY SECRETARY USE ONLY: APPROVED q"9:1 (fl3tl hAare2� /I/n l ET As Recommended C'h«5f/ ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION C�pppe'D� 2 Adopt a resolution amending Section 10.5 of the Agency's By -Laws. DISCUSSION On April 16, 1985, the Agency added Section 10.5 to its By -Laws requiring the affirmative vote of at least five (5) Agency Board members to approve any contract that directly or indirectly obligates the Agency to acquire any interest in real property. The intent of this provision was to prevent a situation where only the majority of the Agency members approved a development agreement that contemplated potential future exercise of eminent domain. State law requires the affirmative vote of at least five (5) Agency Board members to exercise eminent domain. If the Agency adopted a development agreement with less than five votes and then failed to obtain the five votes on eminent domain, the Agency could potentially be exposed to risk for failure to perform all of the terms of the agreement. The vast majority of real estate agreements approved by the Agency are entirely voluntary and do not contemplate the exercise of the power of eminent domain. Staff is recommending an amendment to Section 10.5 of the By -Laws, which would retain the five vote requirement only for agreements requiring future consideration of a resolution of necessity pertaining to an eminent domain action. All other Agency actions shall be in accordance with Section 11 of the By -Laws. 4 -1