HomeMy WebLinkAboutOrd 1994-2585 ORDINANCE NO. 2585
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AMENDING ORDINANCE NO. 2146 WITH RESPECT TO
LIMITATIONS ON THE AMOUNT OF TAX INCREMENT
REVENUES FROM THE BAYFRONT/TOWN CENTRE
REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING
INSTITUTION OF JUDICIAL PROCEEDINGS TO DETERMINE THE
VALIDITY HEREOF
WHEREAS, the City Council of the City of Chula Vista (the "City") has heretofore
enacted Ordinance No. 1541 on July 16, 1974, approving the Redevelopment Plan for the
Bayfront Redevelopment Project and Ordinance No. 1691 on July 28, 1976 approving the
Redevelopment Plan for the Town Centre Redevelopmerit Project, respectively (jointly the
"Redevelopment Plans" and individually the "Bayfront Plan" and "Town Centre Plan"),
pursuant the California Community Redevelopment Law (the "Law") consisting of Part 1 of
Division 24 of the Health and Safety Code of the State of California, and the Project Areas
described in each of the Redevelopment Plans (the "Project Areas") have been merged
pursuant to Ordinance No. 1872 enacted by the City Council on July 17, 1979; and,
WHEREAS, pursuant to Section 33333.4 of the Law, the City Council has previously
adopted its Ordinance No. 2146 on April 22, 1986 which (among other things) contains a
limitation on the aggregate amount of tax increment revenues which may be divided and
allocated to the Agency pursuant to the Redevelopment Plans; and,
WHEREAS, said Ordinance No. 2146 did not properly express the intention of the City
Council as it existed at that time in establishing said limitation, and the City Council wishes
at this time to amend said Ordinance No. 2146 to give effect to such original intention;
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings and Determinations. The City Council hereby finds and determines
that the limitation contained in Section 1 of Ordinance No. 2146 did not
properly express the original intention of the City Council in establishing said
limitation, and that the amendment of said Ordinance No. 2146 pursuant to this
Ordinance is necessary to give effect to the original intention of the City
Council. In making such finding and determination, the City Council has
considered, among other things, the fact that concurrent with the adoption of
Ordinance No. 2146 the City Council approved the issuance and sale by the
Redevelopment Agency of the City of Chula Vista of its tax allocation bonds in
the aggregate principal amount of $38,655,000, the aggregate amount of
principal of and interest on which exceed the limitations set forth in Ordinance
No. 2146.
SECTION 2. Amendment of Ordinance No. 2146. Section 1 of Ordinance No. 2146 is
hereby amended in its entirety to read as follows:
Ordinance No. 2585
Page 2
"The aggregate amount of Tax Revenues which may be divided and allocated to the
Agency pursuant to the Redevelopment Plan for the Bayfront Redevalopment Project
shall be 1/m/ted to the amount which would be required in any fiscal year to pay the
principal and interest coming due in such fiscal year on loans, advances or
indebtedness issued by the Agency in the aggregate principal amount of Fifty M/l/ion
Dollars (~50,000,000), the total actual amount of which principal and interest is
~210,000,000.00. The aggregate amount of Tax Revenues which may be divided and
allocated to the Agency pursuant to the Redevelopment Plan for the 'Town Centre
Redevelopment Project shall be limited to the amount which would be required in any
fiscal year to pay the principal and interest coming due in such fiscal year on loans,
advances or indebtedness issued by the Agency in the aggregate principal amount of
Twenty Million Dollars (~20,000,000), the total actual amount of which principal and
interest is ~84,000,000. For purposes of calculation, it shall be assumed that the
loans, advances or indebtedness of the Agency bear interest at the maximum rate
permitted by law, that principal and interest come due and payable in approximately
equal annual installments, and that the loans, advances or indebtedness mature over
a period of thirty (30) years from the date of their issuance (such issuance to occur
within the time limit set forth in Section 2). The Agency shall be entitled to receive
Tax Revenues in any fiscal year in the full amount calculated under this Section I even
though such amount may exceed the amount actually required to pay principal of and
interest on outstanding loans, advances or indebtedness of the Agency in such fiscal
year. Taxes shall not be divided and shall not be allocated to the Agency in excess of
the limitations established in this Section 1."
SECTION 3. Institution of Judicial Validation Proceedings. The validity of this Ordinance is
hereby authorized to be determined under and pursuant to the provisions of
Sections 860 et seo. of the Code of Civil Procedure of the State of California.
In order to determine the validity of this Ordinance and the amendments made
hereby, the City Council hereby authorizes the law firm of Jones, Hall, Hill &
White, a Professional Law Corporation, in concert with the City Attorney, and
such other attorney as City Attorney shall employ (authority for which is hereby
granted and the expenditures for which are hereby appropriated from the
proceeds of the sale of said bonds) to prepare and cause to be filed and
prosecuted to completion all proceedings required for the judicial validation of
the bonds in the Superior Court of San Diego County, under and pursuant to
said provisions. -
SECTION 4. Urgency. This ordinance affects public safety, health, and welfare of the City
of Chula Vista and its inhabitants and therefore shall take full force and effect
immediately upon final passage and adoption thereof. The facts establishing
this urgency are that the discrepency between the Council's intent in adopting
Ordinance No. 2146 and the actual articulation of Ordinance No. 2146 could
pose a limitation on the ability of the City Council to adopt a resolution of intent
to issue bonds for the purpose of refunding preexisting indebtedness (1986
Bayfront Tax Allocation Bonds), and could, in the absence of immediate
correction, in fact threaten the ligitimacy and authority for the issuance of said
1986 Bayfront Tax Allocation Bonds. Furthermore, the correction is needed
Ordinance No. 2585
Page 3
immediately in order to take advantage of the current lower interest rates and
lower debt service costs that are expected to be available on the refunding
issue. The monetary savings that are expected to result are, due to the
reduced tax increment proceeds generaged to the Agency from the Project
Areas, are needed to avert a possible declaration of default on the 1986
Bayfront Tax Allocation Bond.
SECTION 5. Nunc Pro Tunc Effective Date. This Ordinance shall, upon the adoption hereof
on an urgency basis, or on the 31st day after the final reading and adoption
hereof if four votes are not cast herefor, or if a court should determine that
there is insufficiency basis for adoption of this ordinance on an urgency basis,
relates back to the date of the adoption of Ordinance No. 2146 as an
expression of the Council's original intent in adopting said Ordinance, and shall
take effect, nunc pro tunc, from and after the effective date of the passage and
adoption of Ordinance No. 2146, adopted April 22, 1986.
Presented by Approved as to form by
Chr'~s Salomone Bruce M. Boo{]a~rd
Community Development Director City Attorney
Lyrr~an Christopher
Director of Finance
Ordinance No. 2585
Page 4
PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista,
California, this 4th day of January, 1994, by the following vote:
AYES: Councilmembers: Fox, Horton, Moore, Rindone, Nader
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
Tim Nader, Mayor
ATTEST:
BeverlyrA. ~,uthelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A, Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Ordinance No. 2585 had its first reading on December 28, 1993, and its second
reading and adoption at a regular meeting of said City Council held on the 4th day of January,
1994.
Executed this 4th day of January, 1994.
I~everly A(. Authelet, City Clerk