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HomeMy WebLinkAbout2011/08/09 Item 03oRDINANCE No. SECOND READING ANA ppOPT10N ORDINANCE OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY OF CHULA VISTA TO PARTICIPATE IN THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM, PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE, SUB7ECT TO CERTAIN CONDITIONS AND RESERVATIONS WHEREAS, the Redevelopment Agency of the City of Chula Vista, ("Agency") is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City ofChula Vista ("City"); and WHEREAS, the City Council of the City of Chula Vista ("City") approved and adopted a Redevelopment Plan ("Redevelopment Plan") covering the Merged BayfrontlTown Centre I and Merged Chula Vista project azeas (the "Project Areas") within the City of Chula Vista; and WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Areas 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; and WHEREAS, over the next few yeazs, The Agency hopes to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Area's economic growth, create and develop local j ob opportunities and alleviate deficiencies in public infrastructure, to name a few; and WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has recently enacted and the Governor has signed, companion bills AB 1X 26 and AB 1 X 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WIIEREAS, AB 1X 26 prohibits redevelopment agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that redevelopment agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, AB 1X 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 ofthe Health and Safety Code and this Ordinance is intended to meet that requirement; and WHEREAS, ABxl 27 requires the City to notify the County Auditor-Controller ("County"), the State Controller, and the State Department of Finance on or before November 1, 2011, that the City will comply with Part 1.9 and this Ordinance is intended to be such notice; 3-1 Ordinance No. Page 2 and WHEREAS, ABxl 27 authorizes the City to enter into an Agreement with the Agency, whereby the Agency may transfer a portion of its tax increment to the City for the purpose of financing certain activities within the City's redevelopment areas, as specified in Part 1.9; and WHEREAS, ABXl 27 imposes specified sanctions on the City in the event that the City fails to make the required remittances, as determined by the Director of Finance; and WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agree by ordinance to remit specified annual amounts to the county auditor-controller and this Ordinance is intended to be such agreement to make the required remittances; and WHEREAS, under the threat of dissolution pursuant to AB IX 26, and upon the contingencies and reservations set forth herein, the City intends to make the Fiscal Yeaz 2011- 2012 community remittance, currently estimated to be Four Million Two Hundred Thousand Dollars ($4,200,000), as well as the subsequent annual cotmunity remittances pursuant to the CRL; and WHEREAS, the City reserves the right to appeal the California Director of Finance's determination of the Fiscal Yeaz 2011-12 community remittance, as provided in Health and Safety Code Section 34194; and WHEREAS, City understands and believes that an action challenging the constitutionality of AB IX 26 and AB 1X 27 will be filed on behalf of cities, counties and redevelopment agencies; and WHEREAS, 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 AB 1X 26 and AB 1X 27 aze unconstitutional; and WHEREAS, the City reserves the right, regazdless of any community remittance made pursuant to this Ordinance, to challenge the legality of AB 1X 26 and AB 1X 27; and WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment obligation of AB 1X 26 and AB 1X 27, the City shall not be obligated to make any community remittance for the duration of such injunction, restraint, or stay; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. 3-2 Ordinance No. Page 3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: Section 1. Recitals. The Recitals set forth above aze true and correct and incorporated herein by reference. Section 2. Participation in the Alternative Voluntary Redevelopment Proeram. 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 AB 1X 27. This ordinance is that ordinance referred to in CRL Section 34193. Section 3. Community Remittance. To the extent permitted by law, 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 4. Effect of Stay or Determination of Invalidity. City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB 1X 26 and AB 1X 27 or determines that AB 1X 26 and AB 1X 27 aze unconstitutional and therefore invalid, and ali appeals therefrom aze exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Any community remittance shall be made under protest and without prejudice to the City's night to recover such amount and interest thereon in the event that there is a final determination that AB 1X 26 and AB IX 27 aze unconstitutional. Ifthere is a fmal determination that AB 1X 26 and AB 1X 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. Section 5. Imnlementation. The City Council hereby authorizes and directs the City Manager to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the County Auditor-Controller, the Controller of the State of California, and the California Department of Finance ofthe 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 set forth in AB 1 X 27. Section 6. Additional Understandines and Intent. 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. Section 7. CE A. The City Council fmds, 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 potential future projects and programs, and does not commit funds to any specific project or program. The City Council, 3-3 Ordinance No. Page 4 therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of San Diego in accordance with CEQA Guidelines. Section 8. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings aze based are located at the City Clerk's office located at 276 Fourth Avenue, Chula Vista, CA 91910. Section 9. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declazes that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. Section 10. Certification: Publication. 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 Chula Vista, 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. Effective Date. This Ordinance sha1I become effective thirty (30) days from its adoption. Presented by Approved as to form by Gary Halbert, P.E., AICP Assistant City Manager/Development Services Director i Glen R. Googins City Attorney 3-4