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Home My WebLink About50A - EXTEND DEADLINE DEBTREQUEST FOR )COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 5,, 2004 TITLE: ORDINANCE EXTENDING DEADLINES FOR DEBT INCURRED IN THREE REDEVELOPMENT PROJECT AREAS CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED [] As Recommended [] As Amended [] Ordinance on 1st Reading [] Ordinance on 2nd Reading [] Implementing Resolution [] Set Public Hearing For CONTINUEDTO FILE NUMBER RECOMMENDED ACTION Adopt an ordinance amending the deadline for the incurrence of debt to coincide with the plan effectiveness deadline for'the North Harbor, South Harbor, and South Main Redevelopment Project areas. DISCUSSION In 2001 the California State legislature adopted SB211 which allows the City to amend a pre-1994 redevelopment plan to extend the debt incurrence deadline to coincide with the plan effectiveness deadline, which is July 2022 for the North Harbor, South Harbor, and South Main Redevelopment Project areas. In order to extend the existing debt incurrence time limit, the legislative body is required to adopt a summary ordinance, which will allow the Redevelopment Agency to continue to establish new loans, advances or indebtedness after January 1, 2004. Upon adoption of the summary ordinance amending the redevelopment plan, the Agency will be required to pay the statutory pass through payments pursuant to Health & Safety Code Section 33607.7 to each affected taxing entity with which the Redevelopment Agency does not already have a pre-1994 pass through agreement. Based on an analysis by Keyser Marston Associates of the Agency's current obligations and existing debt, it has been determined that the extension of time to incur debt for the North Harbor, South Harbor and South Main Redevelopment project areas is necessary in order for the Agency to continue to meet its long-term goals and objectives in these project areas. It was also determined that the financial impacts of the ostatutory pass through payments for the Central City/Downtown and Intercity project areas did not warrant extending the debt incurrence limit at this time. However, the time limits for these project areas may be extended at any time if circumstances warrant. The Bristol project 50.A. Ordinance Extending Deadlines for Debt Incurred in Three Redevelopment Project Areas January 5, 2004 Page 2 area was adopted in 1987 and therefore can continue to incur debt until 2009 without amendment. FISCAL IMPACT The projected net present value of pass remaining term of the three project areas is the amendment. through payments over the $16,210,000 as a result of APPROVED AS TO FUNDS AND ACCOUNTS: ~ohn P. Reekstin// Executive Director Community Development Agency %~od R. Coloma Executive Director Finance & Management Services Agency JPR/NTE/mlr 102004- \OrdExtndingDeadlinesforDebtIncurin3RedevProjAreas 1-5-04 Page 56 12/24/03 LE~S ORDINANCE NO. NS-2641 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING THE NORTH HARBOR, SOUTH HARBOR, AND SOUTH MAIN REDEVELOPMENT PLANS OF THE CITY OF SANTA ANA TO EXTEND THE TIME LIMIT IN EACH PLAN FOR THE INCURRENCE OF DEBT TO COINCIDE WITH THE EFFECTIVENESS OF SAID PLANS 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 l, 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) to extend 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. Page 57 50.A. 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. 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. 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, and amended by Ordinance No. NS-2234 on or about October 3, 1994, Ordinance No. NS-2256 adopted on or about July 17, 1995, and Ordinance NS-2396 in August of 1999. South HarborPlan shall mean the Santa Aha 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, and Ordinance NS-2396 in August of 1999. North HarborPlan 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, and Ordinance NS-2396 in August of 1999. 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 50.A. Page 58 Redevelopment Law, subject to all exceptions specified in the Community Redevelopment Law. SECTION 3: The North Harbor, South Harbor and South Main Redevelopment Plans of the City of Santa Ana are hereby amended to repeal the existing debt incurrence time limit so that the Agency can incur debt for these respective project areas up to the current redevelopment plan effectiveness dates, as set forth below. North Harbor Plan South Harbor Plan South Main Plan July 6, 2022 July 6, 2022 July 6, 2022 July 6, 2022 July 6, 2022 July 6, 2022 July 6, 2032 July 6, 2032 July 6, 2032 SECTION 4: 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. Pa e 59 50.A. ADOPTED this day of ,2004. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By: Lisa E. Storck Assistant City Attomey AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E, HEALY, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-2641 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 50.A. 4 Page 60