HomeMy WebLinkAbout2011 CC RESO 2011-220 CDCRESOLUTION NO. 2011 — 220
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY ADOPTING AN AMENDED
ENFORCEABLE OBLIGATIONS PAYMENT SCHEDULE
WHEREAS, the Community Development Commission of the City of National
City ("CDC") is a public body, corporate, politic, formed, organized, and exercising its powers
and existing pursuant to the California Community Redevelopment Law, Health and Safety
Code Section 33000, et seq., (the "CRL"), and specifically formed by the City Council of the City
of National City; and
WHEREAS, continued redevelopment to eliminate blight, improve public facilities
and infrastructure, renovate and construct affordable housing, and enter into partnerships with
private industries to create jobs and expand the local economy is vital to the health, safety and
welfare of the City; and
WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the CRL were added by
Assembly Bill xl 26 and Assembly Bill xl 27 (together the "2011 Redevelopment Legislation"),
which laws purported to become effective immediately; and
WHEREAS, the 2011 Redevelopment Legislation is a part of multiple trailer bills
to the Fiscal Year 2011-2012 California budget bills that were approved by both houses of the
State Legislature on June 15, 2011, and signed by the Governor on June 28, 2011; and
WHEREAS, part 1.85 of the CRL (the "Dissolution Act") added by the 2011
Redevelopment Legislation ("Part 1.85") provides for the statewide dissolution of all
redevelopment agencies, including the CDC (but not dissolution of the housing authority
thereof), as of October 1, 2011, and provides that, thereafter, a successor agency will
administer the enforceable obligations of the redevelopment agency of the CDC and otherwise
wind up the CDC's affairs, all subject to the review and approval of an oversight committee; and
WHEREAS, Part 1.8 of the CRL added by the Redevelopment Legislation ("Part
1.8") provides for the restriction of activities and authority of the CDC in the interim period prior
to dissolution to certain "enforceable obligations" and to actions required for the general winding
up of affairs, preservation of assets, and certain other goals delineated in Part 1.8; and
WHEREAS, as part of this wind up process, all redevelopment agencies are
required to file a schedule of those "enforceable obligations" that require payments to be made
through the end of the calendar year 2011 ("Enforceable Obligations Payment Schedule"); and
WHEREAS, the dissolution of the CDC would be detrimental to the health, safety
and economic well-being of the residents of the City, and would cause irreparable harm to the
community because, among other reasons, the redevelopment activities and projects made
possible, implemented and funded by the CDC are highly significant and of enduring benefit to
the community and the City and are a critical component of the City's future; and
WHEREAS, Part 1.9 of Division 24 of the CRL added by the 2011
Redevelopment Legislation ("Part 1.9") provides that a redevelopment agency may continue in
operation if a city or county that includes a redevelopment agency adopts an ordinance
agreeing to comply with and participate in the Alternative Voluntary Redevelopment Program
established in Part 1.9; and
Resolution No. 2011 — 220
September 27, 2011
Page Two
WHEREAS, pursuant to Part 1.9, Parts 1.8 and 1.85 of Division 24 of the CRL,
which include the Enforceable Obligations Payment Schedule requirement, will not apply to the
CDC if the City enacts the ordinance to participate in the Alternative Voluntary Redevelopment
Program, which allows a community's redevelopment agency to continue operating, without the
constraints of California Health and Safety Code Section 34161, et seq.,; and
WHEREAS, on August 2, 2011, the City Council of the City of National City
adopted Ordinance No. 2011-2365 (the "Ordinance") authorizing the City to participate in the
Alternative Voluntary Redevelopment Program in order to allow the CDC to continue in operation
and performing its functions; and
WHEREAS, on July 18, 2011, the California Redevelopment Association, League
of California Cities, City of Union City, City of San Jose, and John F. Shirey filed a petition for
Writ of Mandate; Application for Temporary Stay, and supporting memorandum and
declarations with the Supreme Court of the State of California (the "Petition"); and
WHEREAS, on August 11, 2011, the California Supreme Court agreed to review
the Petition challenging the constitutionality of the 2011 Redevelopment Legislation and ordered
a stay (the "Supreme Court Stay") relative to specified portions of the2011 Redevelopment
Legislation; and
WHEREAS, on August 17, 2011, the California Supreme Court revised the
Supreme Court Stay; and
WHEREAS, the Supreme Court Stay postponed certain provisions of the 2011
Redevelopment Legislation indefinitely, but left in place provisions prohibiting redevelopment
agencies from making any payments after the date that is sixty (60) days from the effective date
of the Dissolution Act, other than debt service payments and payments listed on an adopted
Enforceable Obligation Payment Schedule; and
WHEREAS, on August 24, 2011, the CDC approved its Enforceable Obligation
Payment Schedule ("EOPS"); and
WHEREAS, consistent with and pursuant to both the 2011 Tax Allocation Bond
issuance and the Cooperation Agreements between the CDC and the City, the City approved
two contracts related to the National City Aquatic Center (a bond project) on September 6,
2011; and
WHEREAS, it is desirable to amend the EOPS to identify these two contractual
obligations; and
WHEREAS, the administrative costs have been broken down into monthly
payments, where as they were shown only as a lump sum; and
WHEREAS, subject to the contingencies and reservations set forth herein, the
CDC nevertheless desires to adopt an amended Enforceable Obligations Payment Schedule, and
to amend it from time to time as necessary; and
Resolution No. 2011 — 220
September 27, 2011
Page Three
WHEREAS, the CDC, by adoption of this Resolution, does not represent,
disclaim, or take any position whatsoever on the issue of the validity of the 2011
Redevelopment Legislation, but rather the CDC seeks to comply with the Constitution and the
laws of the State of California, including the 2011 Redevelopment Legislation, in order to
preserve the ability of the CDC to continue to operate and perform its obligations and thereby
benefit the community; and
NOW, THEREFORE, BE IT RESOLVED by the Community Development
Commission of the City of National City as follows:
Section 1.
Section 2.
The foregoing Recitals are true and correct, and incorporated into this
Resolution by this reference, and constitute a material part of this
Resolution.
Pursuant to California Health and Safety Code Section 34169, the CDC
hereby adopts an amended Enforceable Obligations Payment Schedule,
as described herein, and subject to all the reservations set forth in that
resolution adopting the EOPS on August 24, 2011. The Enforceable
Obligations Payment Schedule is that "Enforceable Obligations Payment
Schedule" referred to in Health and Safety Code Section 34169(g) and
shall be interpreted and applied in all respects in accordance with such
section and the California Redevelopment Law, to the fullest extent
permitted by law. However, the Enforceable Obligations Payment
Schedule shall only be applicable to and binding on the CDC to the extent
that Part 1.8 of the 2011 Redevelopment Legislation is applicable to the
CDC. To the extent that Part 1.8 is not applicable to the CDC, whether
because of the City's enactment of the Ordinance or for any other reason,
the amended Enforceable Obligations Payment Schedule shall not be
binding on or control the CDC's payments on or performance of its
obligations.
Section 3. The Executive Director, or designee, is hereby authorized and directed to:
(i) post the amended Enforceable Obligations Payment Schedule on the
City's website; (ii) notify the County Auditor -Controller, the State
Controller, and the State Department of Finance; and (iii) take such other
actions and execute such other documents as are necessary to effectuate
the intent of this Resolution and to implement the amended Enforceable
Obligation Payment Schedule on behalf of the CDC.
Section 4. The Executive Director of the CDC is hereby authorized and directed to
evaluate potential amendments to the Enforceable Obligations Payment
Schedule from time to time as may be appropriate, and to recommend to
the Board of the CDC the adoption of those amendments necessary for
the continued payment on and performance of enforceable obligations.
Resolution No. 2011 — 220
September 27, 2011
Page Four
Section 5.
This Resolution shall in no way be construed as requiring the City to
abide by the 2011 Redevelopment Legislation in the event either, or both,
bills are found unconstitutional or otherwise legally invalid in whole or in
part, nor shall this Resolution effect or give rise to any waiver of right or
remedies the City may have, whether in law or in equity, to challenge the
2011 Redevelopment Legislation. This Resolution shall not be construed
as the City's willing acceptance of, or concurrence with the 2011
Redevelopment Legislation, either ABx1 26 or ABx1 27; nor does this
Resolution evidence any assertion or belief whatsoever on the part of the
City that the 2011 Redevelopment Legislation is/are constitutional or
lawful.
Section 6. The Secretary shall certify to the adoption of this Resolution, which shall
take effect upon the date of its adoption.
PASSED and ADOPTED this 27th day of Septeryl;ier, 2011.
Ron Morrison, Chairman
ATTEST:
OVED AS TO FORM:
ua Silva
C G:ner. Counsel
Passed and adopted by the Community Development Commission of the City of
National City, California, on September 27, 2011, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Community Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-220 of the Community Development Commission of the City
of National City, California, passed and adopted on September 27, 2011.
Secretary, Community Development Commission
By:
Deputy