HomeMy WebLinkAbout11B - ORDINANCE DEBT INCURREDJWF 9/29/10
ORDINANCE NO. NS-
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 effective 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
limits, 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 $62,000,000 in
tax allocation bonds in late 2010 to restructure existing debt of the
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Agency as well as to issue approximately $5,900,000 of federally
taxable Recovery Zone bonds (jointly, the "2010 Tax Allocation
Bonds"). Elimination of the debt incurrence time limit for these
redevelopment plans is necessary for the structuring of the 2010
Tax Allocation Bonds.
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.
Central City Plan shall mean the City of Santa Ana Redevelopment Plan
originally adopted by Ordinance No. NS-1173 on or about July 2, 1973, as
amended.
Inter City Plan shall mean the Inter City Commuter Station Redevelopment
Plan originally adopted by Ordinance No. NS-1636 on or about July 6, 1982, as
amended.
Bristol Plan shall mean the Bristol Corridor Redevelopment Plan originally
adopted by Ordinance No. NS-2039on or about December 4, 1989, as amended.
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, Time limit on plan effectiveness,
Time limit on receipt of tax increment shall have those meanings as described in
subdivisions (a), (b) and (c), respectively, of Section 33333.6 of the Community
Redevelopment Law, subject to all exceptions specified in the Community
Redevelopment Law.
SECTION 3: The Central City, Inter City and Bristol Redevelopment Plans
of the City of Santa Ana are hereby amended to repeal the existing debt
incurrence time limits so that the Agency can incur debt for these respective
project areas up to the redevelopment plan effectiveness dates.
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
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adopted this Ordinance, and each and all provisions hereof, irrespective of the fact
that one or more provisions may be declared invalid.
SECTION 5: This ordinance shall become effective upon the issuance and
sale of the 2010 Tax Allocation Bonds.
ADOPTED this day of
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
AYES:
NOES:
Councilmembers
Councilmembers
, 2010.
Miguel A. Pulido
Mayor
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, 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
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