HomeMy WebLinkAboutResolutionRESOLUTION NO. 2013 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
IN SUPPORT OF ASSEMBLY BILL 981 - BLOOM RELATED
TO THE USE OF REDEVELOPMENT BOND PROCEEDS
WHEREAS, redevelopment has been an essential tool in the revitalization of
communities across California and the City of National City; and
WHEREAS, the elimination of Redevelopment Agencies ("RDAs") has left cities without
the necessary tools to continue the important work of reducing blight and creating safer, more livable
neighborhoods that can meet residents' expectations; and
WHEREAS, the City of National City, over the course of many years, has developed
and invested in plans to implement a capital improvement program, which included the WI-TOD
affordable housing project, streets and park improvements, and other public projects; and
WHEREAS, the City of National City developed and adopted the Westside Specific Plan
which included the WI-TOD project, and which also was accompanied by a certified environmental
impact report: and
WHEREAS, the City of National City also developed and adopted the General Plan
Update with an accompanying certified environmental impact report, which included transportation and
park improvements; and
WHEREAS, the Community Development Commission — Redevelopment Agency in
2011 issued bonds in the amount of $39,660,000 and was ready to execute contracts with contractors
and project managers to construct the above -referenced projects; and
WHEREAS, the elimination of RDAs, as prescribed by ABx1 26, assumed that funds
generated as a result of the bond issuance would be made available by the successor agency to the state
and counties to be used for purposes other than those for which they were originally issued; and
WHEREAS, bonds floated under a tax-exempt status can only be used for the originally
intended purposes and cannot be defeased for 10 years, using bond proceeds for purposes other than
the originally stated could trigger a loss of the tax-exempt status and the potential imposition of
monetary penalties; and
WHEREAS, the Successor Agency to the Community Development Commission as the
National City Redevelopment Agency ("Successor Agency") is currently servicing the debt on the issued
bonds and has made bi-annual debt service payments; and
WHEREAS, cities like National City have been prevented from proceeding with the
construction of much needed projects at a time when the unemployment in California is above 10%; and
WHEREAS, AB 981 will allow 2011 bond proceeds to be used for their intended
purposes after the State grants a finding of completion;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National
City hereby supports Assembly Bill 981 - Bloom related to the use of redevelopment bond proceeds.
--- Signature Page to Follow ---
Resolution No. 2013-
Page Two
PASSED and ADOPTED this 2nd day of April, 2013.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney