HomeMy WebLinkAboutSA RESO 2015-59RESOLUTION NO. 2015 — 59
RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY
TO THE COMMUNITY DEVELOPMENT COMMISSION AS
THE NATIONAL CITY REDEVELOPMENT AGENCY REQUESTING
THE OVERSIGHT BOARD TO FIND THAT THE REPAYMENT OF
THE $420,000 BALANCE DUE ON THE SEWER FUND LOAN
ESTABLISHED BY COMMUNITY DEVELOPMENT COMMISSION
RESOLUTION 2010-148 IS AN ENFORCEABLE OBLIGATION AND
THAT THE LOAN WAS FOR LEGITIMATE REDEVELOPMENT PURPOSES
WHEREAS, the City Council established the Redevelopment Agency of the City
of National City (the "Redevelopment Agency") by Ordinance No. 1164, dated April 11, 1967;
and
WHEREAS, the City Council established the Housing Authority of the City of
National City (the "Housing Authority") by Ordinance No. 1484, dated October 14, 1975; and
WHEREAS, the City Council established the Community Development
Commission of the City of National City (the 'CDC') by Ordinance No. 1484, dated October 14,
1975, and vested the CDC with all of the powers, duties and responsibilities of both the
Redevelopment Agency and the Housing Authority, among other matters, for the purpose of
enabling the CDC to operate and govern the Redevelopment Agency and the Housing Authority
under a single board and as a single operating entity. The Community Development
Commission of the City of National City acting in its capacity as the Redevelopment Agency of
the City of National City is referred to herein as the 'CDC -RDA"; and
WHEREAS, all California redevelopment agencies, including the Redevelopment
Agency and the CDC -RDA, were dissolved on February 1, 2012, and successor agencies were
designated and vested with the responsibility of winding down the business and fiscal affairs of
the former redevelopment agencies; and
WHEREAS, pursuant to AB 26, the City Council of the City adopted Resolution
No. 2012-15 on January 10, 2012, electing to be the Successor Agency to the CDC -RDA. The
Successor Agency is a legal entity that exists separate and independent from the City. The
Successor Agency formally named :self the `Successor Agency to the Community
Development Commission as the National City Redevelopment Agency"; and
WHEREAS, on February 1, 2012, all assets, propertles, contracts, leases, books
ai id recolds, buildings and equipment of the Redevelopment Agency and the CDC -RDA were
transferred by operation of law to the control of the Successor Agency and all authority, rights,
,o'riiers, duties, and cbligaUcns previously veSied !ri the Rudw.ralopment Agency and the CDC -
RDA were vested in the Successor Agency, for administration pursuant io Part i.85 of AB 26;
and
WHEREAS, as part of the FY 2012-2013 State budget package, on June 27,
2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 ("AB 1484°,
Chapter 26, Statutes 2012). Although the primary purpose of AB 1484 is to make technical and
substantive amendments to AB 26 based on issues that have arisen in the implementation of
AB 26, AB 1484 imposes additional statutory provisions relating to the activities and obligations
of successor agencies and to the wind down process of former redevelopment agencies; and
Resolution No. 2015 — 59
February 17, 2015
Page Two
WHEREAS, under AB 26 as amended by AB 1484, each successor agency shall
have an oversight board with fiduciary responsibilities to holders of enforceable obligations and
the taxing entities that benefit from distributions of property taxes and other revenues pursuant
to Health and Safety Code Section 34188; and
WHEREAS, the oversight board has been established for the Successor Agency
(hereinafter referred to as the "Oversight Board") and all seven (7) members have been
appointed to the Oversight Board pursuant to Health and Safety Code Section 34179. The
duties and responsibilities of the Oversight Board are primarily set forth in Health and Safety
Code Sections 34179 through 34181 of AB 26 as amended by AB 1484; and
WHEREAS, pursuant to AB 26 as amended by AB 1484, loans between the
former redevelopment agency and its sponsoring entity are not eligible for repayment until the
successor agency receives a Finding of Completion (FOC) and, pursuant to HSC section
34191.4 (b) (2), the oversight board finds that the loan agreement is an enforceable obligation
and that the loan was for legitimate redevelopment purposes; and
WHEREAS, the Successor Agency received a FOC on September 9, 2014; and
WHEREAS, on June 22, 2010 the CDC approved resolution 2010-148
authorizing the use of tax increment funds of $771,250 towards the City of National City's 2010
street resurfacing program; and
WHEREAS, the payment of the $771,250 was to be made over a three year
period in the form of a loan repayment to the City's Sewer Fund from which $1,500,000 was
borrowed to enable the City to carry out a $4.0 million street resurfacing program in a one year
period; and
WHEREAS, $420,000 remains to be paid under the terms of the agreement; and
WHEREAS, pursuant to the Redevelopment Plan for the National City
Redevelopment Project, the CDC was authorized to expend tax increment funds for public
improvements, including but not limited to street improvements; and
WHEREAS, the Successor Agency believes the loan agreement to be an
enforceable obligation; and
WHEREAS, the Successor Agency requests that the Oversight Board approve
the loan agreement to be an enforceable obligation and that the loan was made for legitimate
redevelopment purposes; and
WHEREAS, this Resolution has been reviewed with respect to applicability of the
California Environmental Quality Act ("CEQA"), the State CEQA Guidelines (California Code of
Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines"), and the City's
environmental guidelines; and
Resolution No. 2015 — 59
February 17, 2015
Page Three
WHEREAS, this Resolution is not a "project" for purposes of CEQA, as that term
is defined by Guidelines section 15378, because this Resolution is an organizational or
administrative activity that will not result in a direct or indirect physical change in the
environment, per section 15378(b)(5) of the Guidelines; and
WHEREAS, all of the prerequisites with respect to the approval of this Resolution
have been met.
NOW, THEREFORE, BE IT RESOLVED by the Board of the Successor Agency
to the Community Development Commission as the National City Redevelopment Agency, as
follows:
Section 1. The foregoing recitals are true and correct, and are a substantive part of
this Resolution.
Section 2. The Loan Agreement between the CDC (the former redevelopment
agency) and the City for the loan repayment to the City's Sewer Fund is
an enforceable obligation and was made for legitimate redevelopment
purposes.
Section 3. The adoption of this Resolution is not intended to and shall not constitute
a waiver by the Successor Agency of any rights the Successor Agency
may have to challenge the effectiveness and/or legality of all or any
portion of AB 26 or AB 1484 through administrative or judicial
proceedings.
Section 4. The Executive Director, or designee, is hereby authorized and directed to:
0) provide this resolution to the Oversight Board;
(ii) take such other actions and execute such other documents as are
necessary to effectuate the intent of this Resolution on behalf of
the Successor Agency; and
(li) take such other actions and execute such other doeu, ,e, w as a
necessary to effectuate the intent of AB 26 and AB 1484 in, regard
to the loan repay,iie t.
Section 5. The Successor Agency determines that this Resolution is not a °project'
for purposes of CEQA, as that term is defined by Guidelines section
15378, because this Resolution is an organizational or administrative
activity that will not result in a direct or indirect physical change in the
environment, per section 15378(b)(5) of the Guidelines.
Section 6. This Resolution shall take effect upon the date of its adoption.
[Signature Page to Follow]
Resolution No. 2015 — 59
February 17, 2015
Page Four
PASSED and ADOPTED this 17`hday of February, 2015.
Ron Morrison, Chairman
ATTEST:
Mich el R. Dalla, Cky Clerk as
Secretary to the Successor Agency
Passed and adopted by the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California, on
February 17, 2015 by the following vote, to -wit:
Ayes: Boardmembers Cano, Mendivil, Monison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY -
By:
RON MORRISON
Chairman of the Successor Agency to the
Community Development Commission
as the Redevelopment Agency of the
City of National City, California
"CityClerkjServi
AasSecret'ary
to the Successor Agency
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2015-59 of the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California,
passed and adopted on February 17, 2015.
City Clerk Serving as Secretary
to the Successor Agency
By: