HomeMy WebLinkAboutAgenda Statement 1986/04/22 Item 11 COUNCIL AGENDA STATEMENT
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Meeting Date-11 /1-5/86 "
ITEM TITLE: Ordinance - ) Establishing limitations on Bayfront/Town
Centre I Redevelopment Project Areas SECOND READING AND ADOPTION
SUBMITTED BY: City Attorney
Community Develop ent Director
REVIEWED BY: City Manager 9 (4/5ths Vote: Yes No )
State Senate Bill (SB) 690 requires redevelopment plans adopted prior to
October 1 , 1976, to incorporate new limitations concerning the allocation of
tax revenues, establishing and incurring debt, and on commencement of eminent
domain proceedings. To comply with SB 690, prior to refinancing the Tax
Allocation Notes for the Bayfront/Town Centre I Redevelopment Projects, the
following ordinance should approved.
RECOMMENDATION: That the Council accept the report and approve the attached
Ordinance establishing limitations on the Bayfront/Town Centre I Redevelopment
Projects.
BOARDS/COMMISSIONS: Not Applicable
DISCUSSION:
SB 690, approved on September 16, 1985, requires new limitations to be placed
on redevelopment plans adopted prior to October 1 , 1976, on or before
December 31 , 1986. This law applies only to the Bayfront Project (established
on July 16, 1974) and the Town Centre I Project (established July 28, 1976) .
Those limitations and their application to the City are as follows:
1 . Statutory Limitation - A limitation on the aggregate amount of tax
revenues which may be divided and allocated to the Agency. Taxes shall
not be divided and shall not be allocated to the Agency beyond that
limitation.
Application to City - A tax revenue limitation of $50 million would be
applied to the Bayfront Project and $20 million would be applied to the
Town Centre I Project for a total of $70 million.
2. Statutory Limitation - A time limit on the establishing of loans, advances
and indebtedness to finance in whole, or in part, the redevelopment
project. No loans, advances, or indebtedness to be repaid from the
allocation of taxes shall be established or incurred by the Agency beyond
the time limitation.
Page 2, Item Yl rr
Meeting Date- '7
Application to City - Although the Bayfront Project and Town Centre I
Project were combined by State legislation in 1979, each have a 25-year
time limit subsequent to their establishment. No new debt may be incurred
or established after 1999 and 2001 for the Bayfront Project and the Town
Centre Project, respectively.
3. Statutory Limitation - A time limit, not to exceed 12 years, for
commencement of eminent domain proceedings to acquire property within the
project area.
Application to City - Although property has been acquired by the Agency in
both the Bayfront Project and the Town Centre I Project, a maximum time,
not to exceed 12 years for commencement of eminent domain proceedings
shall be established.
Although the law requires the Ordinance to be in place on or before
December 31 , 1986, the City' s bond counsel (Jones, Hall , Hill & White)
recommends that these limitations should be established prior to the
refinancing of the Bayfront/Town Centre I Redevelopment Projects Tax
Allocation Notes. The refinancing is scheduled to occur in May 1986.
Subject to Council approval , the first reading of the Ordinance will occur on
April 15 followed by a second reading on April 22. The Ordinance will become
effective 31 days after the second reading.
FISCAL IMPACT: A tax allocation limit of $50 million and $20 million will
be placed on the Bayfront and the Town Centre I projects, respectively.
WPC 2194H
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by the City Cou.t,lc.11 of by the C1v �;t�'•''ui! cif
Chula Vista, California Chula Vista, C2;iffornia
Dated 47_ 7 � w Dated