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HomeMy WebLinkAbout55A - RESOLUTION REDEV SUCCESSOR AGENCY REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JANUARY 9, 2012 TITLE: APPROVED E3 As Recommended RESOLUTION FOR REDEVELOPMENT O Amended SUCCESSOR AGENCY AND SUCCESSOR O O Or rdinance on 2 IReading ~ Ordinance on 2d Reading HOUSING AGENCY PER ABX9 26 O Implementing Resolution E] Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION Adopt a Resolution designating the City of Santa Ana to serve as the Successor Agency and designating the Housing Authority of the City of Santa Ana to serve as the Successor; Housing Agency for the former Community Redevelopment Agency of the City of Santa Ana pursuant to ABX1 26. DISCUSSION On June 28, 2011, the Governor of California signed two bills that impact redevelopment agencies throughout the State, ABX1 26 (Dissolution Bill) and ABX1 27 (Continuation Bill), as part of the 2011-12 State budget. Subsequently, the California Redevelopment Association (CRA) and League of California Cities (League) filed a lawsuit (CRA v Matosantos) challenging the constitutionality of this legislation. On December 29, 2011, the Supreme Court issued its ruling and upheld ABX1 26, but struck down ABX1 27, the bill that would have allowed agencies to remain in operation and participate in a voluntary alternative redevelopment program by making community remittance payments. For Santa Ana, this means the loss of substantial revenues and a vital economic development and affordable housing tool. Any program or project not deemed as an enforceable obligation will be eliminated. Pursuant to ABX1 26, the Supreme Court's decision, and as recommended by legal counsel, the City needs to proceed with adoption of a resolution declaring its intent to serve as the Successor Agency and designating the Housing Authority of the City of Santa Ana to serve as the Successor Housing Agency. This resolution must be submitted to the County Auditor-Controller no later than January 13, 2012_ As of February 1, 2012, the Community Redevelopment Agency of the City of Santa Ana ("Agency") will be dissolved, and the Successor Agency and Successor Housing Agency will be required to make payments and perform other obligations due from the enforceable obligations of the former Agency. Over the next few months, the City, as the Successor Agency, will be required to take further actions including initiating the establishment of the mandated Oversight Board. 55A-1 Resolution For Redevelopment Successor Agencies January 9, 2012 Page 2 Staff and legal counsel will continue to analyze the legislation to determine and implement the additional actions and activities that need to occur as part of the dissolution process. Nancy T. E ards Interim Exe ive Director Community Development Agency NTE/SG/mr Exhibit: 1. Resolution 55A-2 1-5-12 LES RESOLUTION NO. 2012- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DESIGNATING THE CITY OF SANTA ANA AS THE SUCCESSOR AGENCY FOR THE FORMER REDEVELOPMENT AGENCY AND DESIGNATING THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AS THE SUCCESSOR HOUSING AGENCY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of the City of Santa Ana conclusively finds, determines and declares as follows: A. The California Supreme Court's decision in the recent California Redevelopment Agency v. Matosantos case upheld AB1 x 26 (the "Dissolution Act") which will now control the dissolution and winding down of every California redevelopment agency, and declared AB1x27 (the "Alternative Redevelopment Program Act") unconstitutional. B. Pursuant to section 34173 of the California Health & Safety Code, the City that created the Redevelopment Agency ("RDA") may elect to serve as the Successor Agency for the former RDA. All assets, properties, contracts, leases, records, buildings and equipment of the former RDA will be transferred to the control of the Successor Agency. C. Pursuant to section 34176 of the California Health & Safety Code, the City can select the local housing authority that is in the territorial jurisdiction of the former RDA to retain the housing assets and functions previously performed by the RDA. Thus, the City can select the Housing Authority of the City of Santa Ana to perform housing functions previously performed by the RDA. D. Section 34179 of the California Health & Safety Code describes the oversight board that shall be created on or before May 1, 2012. The City shall proceed to fill the required positions on said board. Section 2. The City of Santa Ana hereby elects to act as the Successor Agency for the former Redevelopment Agency. Section 3. The City of Santa Ana hereby selects the Housing Authority of the City of Santa Ana to perform the housing functions previously performed by the RDA and to act as the Successor Housing Agency for the former Redevelopment Agency. Section 4. The Council hereby directs City staff to proceed with establishing the oversight board as set forth in Section 34179 of the California Health & Safety Code. Exhibit 1 55A-3 1-5-12 LES Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 9th day of January, 2012. 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: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2012- to be the original resolution adopted by the City Council of the City of Santa Ana on January 9, 2012. Date: Clerk of Council City of Santa Ana 55A-4