HomeMy WebLinkAbout09. Adopt Reso-Downey Redevelopment PlanAPPROVED BY
TO: MAYOR ASHTON AND MEMBERS OF THE CITY COUNCIL CITY MANAGER
FROM: OF
• E. SCHINDLER,DIRECTOR • •DEVELOPMENT
DATE: MAY 22, 2018
ELECTION TO RECEIVE TAX INCREMENT PAYMENTS PURSUANT TO CALIFORNIA
HEALTH AND SAFETY CODE • 60FOR FORMER DOWNEY
REDEVELOPMENT ':•
. •M�•
That the City Council adopt the following resolution:
•9 Lei 0 to]r • • • 1 •; •
On February 1, 2012, Assembly Bill 1X26 required Redevelopment Agencies (RDA) throughout the state
to suspend all activities and prepare for dissolution. In anticipation of this requirement, on January 10,
2012, the Downey City Council chose to serve as the "Successor Agency" to the RDA to wind down RDA
affairs, including preparation of various payment schedules and assuming other administrative tasks as
required.
The City has two (2) former redevelopment project areas: 1) Downey Redevelopment Plan, and 2)
Woodruff Redevelopment Plan. Pursuant to California Health and Safety Code 33607.5 and 33607.7, the
City is eligible to receive its proportionate share of statutory pass through payments from former
redevelopment project areas. However, the City must adopt a resolution electing to receive its share of
the statutory pass through payments otherwise, the City's share will be distributed to other taxing entities.
On April 2, 2018, staff received a notice from the Los Angeles County Auditor -Controller (LACAC)
requesting documentation of the City's election to receive statutory pass through payments for one of the
two redevelopment project areas, The Downey Redevelopment Plan. As such, staff is presenting and
recommending approval of the attached resolution to the City Council, in order to fulfill the LACAC's
request.
Approval of the Resolution will ensure that the City will continue to receive its proportionate share of pass
through payments going forward, which is anticipated to be $1,901,591 for Fiscal Year 2018-2019. This
revenue will allow for payments to be made towards expenses related to the winding down of the RDA.
Attachments: "A" — Resolution
"B" — Ordinance No. 990
• i •
A RESOLUTION OF • OF DOWNEY MAKING AN
ELECTIONi CALIFORNIA HEALTH AND
SAFETY CODE i .0FOR DOWNEY REDEVELOPMENT
(ALSO KNOWN AS DOWNEY PROJECTNO. 1 AND DOWNEY PROJECTNO.
WHEREAS, the former RedevelopmentAgency of the City of Downey ("Agency')
prepared an amendment to the Redevelopment Plan for the Downey Redevelopment Project
Area, also known as Downey Project No. 1 and Downey Project No. 1/81 Annex (the
`Redevelopment Plan"), to provide for time limitations on establishment of indebtness,
effectiveness of the Redevelopment Plan, and duration of the receipt of tax increment revenues;
and
WHEREAS, Section 33333.6(e)(2) of the Health and Safety Code provides that if an
Agency amends the redevelopment_ plan to extend the limitations period of a plan adopted prior
to January 1, 1994, and any other limitations that would have applied but for that amendment of
the plan, to increase or eliminate the time limit for the establishment of loans, advances, and
indebtedness to be repaid by the redevelopment agency, or other reasons as provided in
Section 33333.6(e)(2), then the Agency shall make the payment to affected taxing entities
required by Section 33607.7; and
WHEREAS, Section 33607.7 of the Health and Safety Code provides that if the Agency
amends the redevelopment plan, adopted prior to January 1, 1994, to increase or eliminate the
time limit for the establishment of loans, advances, and indebtedness to be repaid by the
redevelopment agency, or lengthens the period during which the redevelopment plan is
effective, and no pass through agreement exists, the amounts required pursuant to subdivisions
(b), (c) (d) and (e) of Section 33607.5 must be paid to each affected taxing entity, including the
City, if the City elects to receive such tax increments; and
WHEREAS, the City of Downey is an affected taxing entity under Section 33607.5;
THEREFORE; i OF OF DOWNEY DOES
AEREBY RESOLVE •: •
Section 1. Pursuant to Health and Safety Code Sections 33333.6(e)(2) and 33607.5,
the City Council hereby elects to receive its share of the twenty-five percent (25%) tax
increment pass-through payment authorized by Health and Safety Code Section 33607.5(b)
commencing, if not previously commenced the first fiscal year the Agency was required to make
such payments to the affected taxing entities, for the current fiscal year and continuing each
fiscal year thereafter.
Section 2. That the Mayor shall sign and the City Clerk shall certify to the passage
and adoption of this Resolution and thereupon the same shall take effect and be in force.
APPROVED AND ADOPTED this 22"d day of May, 2018;
SEAN ASHTON, •
MARIA ALICIA DUARTE, CMC
City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a Regular Meeting held on the 22nd of May, 2018, by the following vote, to
wit:
AYES:
Council Members:
NOES:
Council Member:
ABSENT:
Council Member:
ABSTAIN:
Council Member:
a
MARIA ALICIA DUARTE, CMC
City Clerk I
a
ORDINANCE NO. 990
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
DOWNEY AMENDING THE DOWNEY REDEVELOPMENT
PLAN, AS AMENDED, TO PROVIDE FOR TIME
LIMITATIONS ON ESTABLISHMENT OF INDEBTEDNESS
EFFECTIVENESS OF THE REDEVELOPMENT PLAN, AND
DURATION OF THE RECEIPT OF TAX INCREMENT
REVENUES, AS REQUIRED BY NEW STATE MANDATED
LEGISLATION, HEALTH AND SAFETY CODE SECTION
33333.6
THE CITY COUNCIL OF THE CITY OF DOWNEY DOES ORDAIN AS FOLLOWS!
SECTIQN 1. &rjJA. The City Council of the City of Downey does hereby
find, determine and declare that:
A. On A044A A 1978 "1 Ci* Council of the OtY of 000W **a
Downey Redevelopment Prqe7d to be administered by the Downey
Community Development Commission (hereafter "Commission"). This
Plan has been amended and as presently constituted was established
by the following Ordinances (the Redevelopment Plan for the Downey
Redevelopment Prejec-t as amended, shall be referred to as the "Plan"):
(1) Ordinance No. 553, adopted August 8, 1978 established the Plan
and the original Downey Redevelopment Project Area;
(2) Ordinance No. 603, adopted August 14, 1979, approved
Amendment No. 1 which changed portions of the ted of the Plan
but did not add land,
(3) Ordinance No. 633, adopted October 28, 1980, approved
Amendment No. 2 which added land to the Project Area;
(4) Ordinance No. 723, adopted July 18, 1983, approved Amendment
No. 3 which added land to the Project Area, however,
Amendment No. 3 was invalidated by the Court on December 2,
1985;
(5) Ordinance No. 856, adopted J0 20, 1987, approved Amendment
, y
No. 4 which added land to the Project Area;
(6) Ordinance No. 930, adopted July 9, 1991, approved Amendment
No. SA which added land to the Project Area;
Attachment "B"
ICiN 2. Pursuant to California Health and Safety Code Section 33333.5
(a), except as provided in Ca . mia Health and Safety Code subsections 33333.6 (
and (h), and notwithstanding the provisions of the Plan, the following dates are
hereby established as the latest dates which CommiWon shall establish loans,
advances, and Indebtedness to be paid in whole or in part with the proceeds of
property taxes received pursuant to Health and Safety Code Section 33670 related to
its activities or r ive property taxes from the Project Area, and the Flan is hereby
amended accordingly:
A. For the Original Area of the Plan: August 8, 1998.
B. For Amendment No. 1 to the Plan:Not Applicable.
C. For Amendment No. 2 to the Plan: October 28,-1999.-
D. For Amendment No. to the Plan: Not Applicable.
E. For Amendment No. 4 to the Plan: July 20, 2007.
F. For Amendment No. SA to the Plan: July 9, 2011.
G. For Amendment No. 5C to the Plan July 9, 2011.
The time limitations set forth in this Section shall not prevent C mi n from
incurring debt to be paid from 'scion's low and moderate income housing fund
or establishing more debt in order to fulfill Commission's housing obligations under
California Health and Safety Code Section 33413.
- Pursuant to California Health and Safety Code Section 33333.6
(b), and notwithstanding the provisions of the Plan other than the time limits
forth in Section 703 of the Plan, the foll "ng dates hereby are; established as the -
dates upon which the effectiveness of the Plan shall be deemed to be tenninated
and the Plan is hereby amended accordingly:
A. For the Original Area of the Plan: August 8, 2018.:
B. For Amendment No. 1 to the Plan: Not Applicable.
C. For Amendment No. 2 to the Plan: October 28,-2020.
D. For Amendment No. 3 to the Plan: Not Applicable.
E. For Amendment No. 4 to the Plan: July 20, 2027.
F. For Amendment No. SA to the Plan: July 9, 2031.
G. For Amendment No. 5C to the Plan: July 9, 2031.
vx2:11277e.1 -3-
SECTION ii.; The City Clerk shall ce . to the adoption of this Ordinance
and shall cause the same to be publishedin the'manner required by law.
PASSED, APPROVED AND ADOPTED this -13th day of December
1994.
Barbara J. Rildly,May
ATTEST
x �
ditli F; l)o neh _' CI"
STATE -OF CALJF.QRWA
COUNTY-,QF LOS 5 )
CITY OF D* i' ``' )
I, Judith E. McDonnell, City Clerk of the City of Downey, do hereby certify that
the foregoing Ordinance No. 990 was regularly introduced and placed upon its
first reading at a regular meeting of the City Council on the 22nd day of November
1994 That thereafter, said Ordinance was duly adopted and passed ata regular
meeting of the City °Council on the t of , UZ_hLr , 1"4, by the following
vote, to wit:
AYES: 5 COUNCILMEMBERS: Lawrence, McCaughan, Brazelton, Boggs, Riley
NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS None
ABSTAIN: 0 COUNCILMEMBERS None
oth E.aAcQouaell, City Clerk.
(7) Ordinance. No. 931,. adopted July 9, 1991, approved Amendment
No. SC which added land to the Project Area.
B. On October 6, 1993, Assembly Bill 1290 (AB 1290), the Community
Redevelopment Law Reform Act of 1993, was signed into law which
imposes pursuant to Health and Safety Code Section 33333.6 a
specified set of statutory maximum time limits for eAsting plans
adopted prior to January 1, 1994.
C. Pursuant to AB 1290, Health and Safety Code Section 33333.6 requires
this Council to adopt an ordinance on or before December 31, 1994
which contains time limitations applicable to the Plan. This statute
specifically provides that adoption of the Ordinance does not require a
public hearing nor compliance with the normal procedures for adoption
of amendments to redevelopment plans.
D. The time limitations referred to in Health and Safety Code Section
33333.6, include a time limitation for the establishment of loans,
advances and indebtedness pursuant to Health and Safety Code
subsections 33333.2 (a) (2) or 33333.4 (a) (2), which cannot exceed
twenty (20) years from the adoption of the suVIect redevelopment plan
or January 1, 2004, whichever is later. Said time limitation does not
prevent Commission from incurring certain prescribed debts related to
low and moderate income housing.
C. The time limitations referred to in Health and Safety Code Section
33333.6, include a time limitation on the effectiveness of a
redevelopment plan which cannot exceed forty (40) years from the
adoption of the subject redevelopment plan or January 1, 2009,
whichever is later.
F. The time limitations referred to in Section 33333.6 with certain stated
exceptions, include a limitation on the Commission paying indebtedness
or receiving property taxes pursuant to California Health and Safety
Code Section 33670 so that the same may not occur after ten (10)
years from the termination of the effectiveness of the subject
redevelopment plan.
G. In the current Plan there are certain time limitations which may not be
in accord with those time limitations required by Section 33333.6.
H. The purpose of this Ordinance is to establish the time limitations
speciW In Health and Safety Code Section 33333.6 for the Plan.
I. It is the desire of the City Council by adoption of this Ordinance to
comply in all respects with all applicable requirements of Health and
Safety Code Section 33333.6.
-2-
n
tAX2:112779.1 -4-