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Home My WebLink About11A - ORDINANCE - VOLUNTARY REDEVELOPMENT8/22/11 LES ORDINANCE NO. 2011- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH 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. The City Council of the City of Santa Ana ("City") approved and adopted the Redevelopment Plan for the currently merged Redevelopment Project ("Redevelopment Plan") covering certain properties within the City (the "Project Area"). B. The Community Redevelopment Agency of the City of Santa Ana ("Agency") is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et sec..) ("CRL"). C. Since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy. D. The Agency plans to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, to renovate and construct affordable housing, to stimulate and expand the Project Area's economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure. E. As part of the 2011-12 State budget bill, the California Legislature has recently enacted and the Governor has signed, companion bills ABX1 26 and ABX1 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments. F. Specifically, ABX1 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are 11 A-1 8/22/11 LES deemed to be dissolved as of October 1, 2011. The City adopted a resolution on August 24, 2011, allowing for this ordinance to be enacted by November 1, 2011, as provided by the CRL. G. ABX1 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. H. The Alternative Voluntary Redevelopment Program requires that the community agree by ordinance to remit specified annual amounts to the county auditor-controller. 1. Under the threat of dissolution pursuant to ABX1 26, and upon the contingencies and reservations set forth herein, the City shall make the Fiscal Year 2011-2012 community remittance, which is currently Twenty Million Four Hundred Eighty Nine Thousand One Hundred Seventy Dollars ($20,489,170.00) (subject to the appeal the City filed as referenced below), as well as the subsequent annual community remittances as set forth in the CRL. J. On August 15, 2011, the City filed an appeal with the California Director of Finance's determination of the Fiscal Year 2011-12 community remittance amount, as provided in Health and Safety Code Section 34194. K. The City is aware that an action challenging the constitutionality of ABX1 26 and ABX1 27 has been filed on behalf of cities, counties and redevelopment agencies. Further, on August 11, 2011, the California Supreme Court agreed to review the petition filed by the California Redevelopment Association and the League of California Cities and stayed specific portions of the legislation. L. While the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination that ABX1 26 and ABX1 27 are unconstitutional. M. The City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of ABX1 26 and ABX1 27. Further, the agreement referenced between the City and Agency shall be entered into conditionally, and shall be operative only if ABX1 26 and ABX1 27 are upheld and the stay or a portion thereof is lifted, as it pertains to this Continuation Ordinance. N. All legal prerequisites to the adoption of this Ordinance have occurred. THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: 2 11 A-2 8/22/11 LES Section 2. The Recitals set forth above are true and correct and incorporated herein by reference. Section 3. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by ABX1 27. Section 4. Except as set forth in Section 5, below, the City Council hereby determines that the City shall make the community remittances set forth in Health and Safety Code section 34194 et seq. Section 5. City shall not make any community remittance in the event (A) a court of competent jurisdiction determines that ABX1 26 and ABX1 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed; or (B) during any judicial stay of ABX1 27. Any community remittance shall be made under protest and without prejudice to the City's right to recover such amount and interest thereon in the event that there is a final determination that ABX1 26 and ABX1 27 are unconstitutional. If there is a final determination that ABX1 26 and ABX1 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. Section 6. The City Council hereby authorizes and directs the City Manager/Interim City Manager, or his designee(s), to take any actions and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Orange County Auditor-Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as Part 1.9 exists on the date of adoption of this Ordinance, as set forth in ABX1 27, with such notification to be accompanied by a certified copy of this Ordinance. Section 7. It is the understanding and intent of the City Council that, once the Agency is again authorized to enter into agreements under the CRL, the City will enter into an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax increment to the City in amounts not to exceed the annual community remittance payments to enable the City, directly or indirectly, to make the annual remittance payments. Said agreement between the City and the Agency shall be conditional, to be operative only if ABX1 26 and ABX127 are upheld and the stay is lifted. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets to make the remittance payments. Section 8. The City Council finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this Ordinance 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 11 A-3 8/22/11 LES potential future projects and programs, and does not commit funds to any specific project or program. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Orange in accordance with CEQA Guidelines. Section 9. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 10. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of Santa Ana, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. Section 11. This Ordinance shall become effective thirty (30) days from and after the date of the final passage and adoption hereof. 4 11 A-4 8/22/11 LES ADOPTED this day of 2011. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph Straka Interim City Attorney By: Lisa E. Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers 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 September , 2011, 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 5 11 A-5 11 A-6