HomeMy WebLinkAboutPowerpointCALIFORNIA
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IN COH.p ORATED
Update on Redevelopment
Dissolution
Successor Agency
September 2, 2014
Overview
• Low and Moderate Income Housing Fund Due
Diligence Review (DDR)
• Finding of Completion (FOC)
• Long Range Property Management Plan (PMP)
• 2011 Bond Legislation (AB 2493)
• Recognized Obligation Payment Schedule
(ROPS) 14-15B
011
Background
• In July 12, 2012 SA submitted $4.7M "true -up"
payment to ATE under protest
• In letter dated Nov. 7, 2012 regarding the LMIHF
DDR, DOF determined that the SA must remit
$6,155,638 to the County for distribution to the
ATEs
• On Nov 14, 2012 staff went to DOF fora " meet
and confer" regarding outstanding issues
• On Dec. 4, 2012 SA staff met with DOF to
dispute the determination and to provide
additional information including a revised DDR
• In letter dated Dec. 14, 2012, DOF confirmed its
initial determination and demanded payment
3
Background
• In letter dated Dec. 21, 2012, the SA responded
to DOF indicating that the payment was not
feasible and requested additional discussions
• On Jan. 8, 2013, the SA transmitted the Other
Funds and Accounts (OFA) DDR to DOF
• On Jan. 14, 2013, Mayor Morrison, CM Rios,
and staff met with Governor Brown's office and
State representative to discuss outstanding
issues.
— Staff presented proposed legislation to resolve 2011
bond issues which ultimately lead to AB981 & AB2493
al
Background
• In a letter dated March 26, 2013, DOF concurred
with the City's OFA DDR's conclusion that there
were no unencumbered balances available for
distribution
—Important to note: amount to be remitted
showed a negative $3.6 million
• Staff went to Sacramento April 25, 2013 to meet
and confer on the net balance (LMIHF DDR)
• On November 17, 2013 staff and DOF held a
teleconference to discuss the cash flow shortage
5
Background & Current
• On April 3, 2014 DOF resubmits demand letter
for $6.1 M threatening to withhold the funds
from the next property tax distribution
• On April 17, 2014 staff went to Sacramento to
discuss demand letter
• On May 13, 2014 DOF rescinded the April V
demand to withhold funds
• On August 24, 2014 DOF revises its
determination on LMlHF DDR based on
clarifying information from staff
— New balance is $572K which is a feasible demand
that was transferred to CAC this week 6
Finding of Completion
• Issued by DOF once true -up and DDRs are
completed including payment
• Should be issued to National City this week
• Allows SA and City the following:
— Submission and approval of the PMP
— Place loan agreements between SA and City on the
ROPS ($420k existing loan for Police Station)
— Enter into new agreements if necessary
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Long Range Property
Management Plan (PMP)
• Must be submitted within 6 months of the
Finding of Completion
• Addresses the disposition and use of real estate
assets owned by the SA
• SA owns approximately 20 assets/properties
• Assets will be placed in 4 categories:
— Public/Government Use
— Retained for Future Development
— Retained to Fulfill Enforceable Obligation
— Sold through broker sale or auction
PMP Timeline
• SDSU Sage Project students completed
background research and initial draft
e ermine aisposition strategy
for each property and research
Internal staff meeting to finalize
disposition strategy
Finalize LRPMP (incorporate edits,
changes, etc.)
LRPMP final review
approval
Submit LRPMP to CA Department
of Finance 9
2011 Bond Legislation -AB 2493
• $40M in bonds issued in
($35M in net proceeds)
March of 2011
• Redevelopment agencies dissolved by
State legislation passed in June 2011
• Retroactive clause stating 2011 bond
proceed can only be used for EOs
• Staff worked with DOF to prove $20M
qualified as EOs (WI-TOD Phase 1)
10
2011 Bond Legislation -AB 2493
• $15M remaining for various projects
— Community Corridors
—Adventure Center -Port Public Improvements
— Las Palmas Park
— Gateway Development (Drive-in site)
• Must be approved through the ROPS if the
legislation passes
• Plan to include on ROPS 14-15B
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Recognized Obligations
Payment Schedule 14-15B
• Covers 6 month aeriod from Janu
through Jun
• ROPS 14-1
e 2015
ary 2015
5B currently being prepared
• Will be presented to SA on September 16
and OB on September 17
• Must be submitted to DOF by October 1
• Will include bond projects and police
station loan
12
Summary
• Low and Moderate Income Housing Fund Due
Diligence Review (DDR)
• Finding of Completion (FOC)
• Long Range Property Management Plan (PMP)
• 2011 Bond Legislation (AB 2493)
• Recognized Obligation Payment Schedule
(ROPS) 14-15B
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Questions?
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