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HomeMy WebLinkAboutSA RESO 2012-18RESOLUTION NO. 2012 — 18 RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY AUTHORIZING THE RELEASE OF APPROPRIATIONS FROM THE COOLIDGE AVENUE AND CASA FAMILIAR PROJECTS AND EOPS OBLIGATIONS, AND AUTHORIZING THE USE OF TAX INCREMENT RESERVE FUNDS TO PROVIDE APPROPRIATIONS FOR THE PROTESTED JULY 12, 2012 TRUE -UP PAYMENT OF $4.2MILLION TO THE DEPARTMENT OF FINANCE PURSUANT TO AB 1484 WHEREAS, on July 9, 2012, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") received notification from the County of San Diego Auditor Controller of a demand for repayment from the State of California Department of Finance ("DOF") pursuant to Assembly Bill 1484 ("AB 1484"); and WHEREAS, AB 1484 contains numerous mandates, including a requirement for all redevelopment Successor Agencies to remit to their respective County Auditor Controllers "true -up" payments, which are characterized as "residual balances" of excess tax increment that had been collected during the initial wind -down of redevelopment that are now allegedly owed to the local taxing entities; and WHEREAS, the July 9, 2012 demand from the San Diego County Auditor Controller to the National City Successor Agency called for a repayment of $4,272,832.94, identified as residual balance payable by July 12, 2012, with significant fines and penalties for late or delinquent payments; and WHEREAS, the Successor Agency did not have any residual balance, contrary to the DOF assertion, because the monies DOF identified had been properly used to pay enforceable obligations that had been identified on its DOF-approved Enforceable Obligations Payment Schedule; and WHEREAS, at a special meeting held July 10, 2012, the Board of the Successor Agency authorized the Executive Director to remit funds in the amount of $4,272,832.94 from any available funds to the San Diego County Auditor Controller, as demanded by the State pursuant to AB 1484, along with a letter preserving the Successor Agency's right to challenge the payment demand; and WHEREAS, as a result, it is necessary to release funds appropriated for the Coolidge Avenue Project in the amount of $450,000, and Casa Familiar Project ($150,163.82), as well as funds previously appropriated for the EOPS obligations from the Tax Increment Reserve Fund, and to use these funds along with available balances in the Redevelopment Obligations Retirement Fund to meet the AB 1484 true -up payment requirement; and WHEREAS, the appropriation for the Coolidge Avenue Project was meant to be used as matching funds for this project. Staff will review whether the 2011 Tax Allocation Bond proceeds appropriated for this project need to be adjusted. The Casa Familiar Project is complete, so there is no impact on the project by releasing the funds. The EOPS obligation account was intended to be used as a supplement for 2011 Tax Allocation Bond projects or other Successor Agency recognized obligations. The available balances in the redevelopment Resolution No. 2012 — 18 Page Two obligations retirement fund were intended to be used to meet Successor Agency recognized obligations for the period of July 1, 2012 through December 31, 2012. With this action, that balance is now depleted. NOW, THEREFORE, BE IT RESOLVED that the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency hereby authorizes the release of appropriations from the Coolidge Avenue Project and the Casa Familiar Project, and authorizing the use of Tax Increment Reserve Funds to meet the AB 1484 true -up payment requirements. PASSED and ADOPTED this 7th day of Augus Won Morrison, Chairman ATTEST: "j'� Michael R. Dalla, ity Clerk as Secretary to the Successor Agency AS TO FORM: Silva 3v Counsel Passed and adopted by the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California, on August 7, 2012 by the following vote, to -wit: Ayes: Boardmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman of the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California By: y it Clerk Servig as Secretary to the Successor Agency Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2012-18 of the Successor Agency to the Community Development Commission as the Redevelopment Agency of the City of National City, California, passed and adopted on August 7, 2012. ty Clerk Serving as Secretary to the Successor Agency By: Deputy