HomeMy WebLinkAbout2007-06-26 - ORDINANCES - SCRDA PROPERTY AQUISITION (2)ORDINANCE NO. 07-5
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, CONTAINING A DESCRIPTION OF
THE SANTA CLARITA REDEVELOPMENT AGENCY'S PROGRAM TO
ACQUIRE REAL PROPERTY BY EMINENT DOMAIN FOR THE
NEWHALL REDEVELOPMENT PROJECT AREA
WHEREAS, the City Council of the City of Santa Clarita, California ("City Council")
adopted Ordinance No.89-27 on November 28, 1989, establishing and creating the Santa Clarita
Redevelopment Agency; and
WHEREAS, the Santa Clarita Redevelopment Agency ("Agency") has been designated as
the official redevelopment agency in the City of Santa Clarita to carry out the functions and
requirements of the Community Redevelopment Law of the State of California (Health and
Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and
WHEREAS, the City Council adopted Ordinance No. 97-12 on July 8, 1997, approving
and adopting the Newhall Redevelopment Project Area ("Project Area"); and
WHEREAS, Section III of the Newhall Redevelopment Project Area Plan ("Plan")
contains the authority regarding Agency use of eminent domain; and
WHEREAS, Section 33342.7 of the Health and Safety Code, added by Senate Bill 53
("SB 53"), which took effect on January 1, 2007, requires the legislative body that adopted a
redevelopment plan containing eminent domain authority before January 1, 2007, to adopt an
ordinance on or before July 1, 2007, containing a description of the agency's program to acquire
real property by eminent domain.
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Pursuant to Section 33342.7 of the Health and Safety Code, a description
of the Agency's program to acquire real property by eminent domain is set forth in Exhibit A,
attached hereto and incorporated herein by this reference. The Agency's program to acquire real
property by eminent domain may be amended only by amending the applicable Redevelopment
Plan pursuant to Article 12 of the Community Redevelopment Law (commencing with Health
and Safety Code Section 33450).
SECTION 2. The City Clerk is hereby directed to send a certified copy of this Ordinance
to the Agency.
SECTION 3. This Ordinance shall be in full force and effect thirty (30) days from its
passage and adoption.
SECTION 4. The City Clerk shall certify to the passage of this Ordinance and shall
cause the same to be published as required by law.
PASSED, APPROVED AND ADOPTED this 26th day of June, 2007.
WMA NMI We- A�
ATTEST:
CITY CLERK
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ss.
CITY OF SANTA CLARITA
1, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Ordinance No. 07-5 was regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 12th day of June, 2007. That thereafter, said
Ordinance was duly passed and adopted at a regular meeting of the City Council on the 26th day
of June, 2007, by the following vote, to wit:
AYES: COUNCILMEMBERS: Boydston, Ferry, Weste, Kellar, McLean
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
CITY CLERK
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
)ss.
CITY OF SANTA CLARITA
CERTIFICATION OF
CITY COUNCIL ORDINANCE
1, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Ordinance No. 07-5, adopted by the City Council of the City of
Santa Clarita, CA on June 26, 2007, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this _ day of
120.
Sharon L. Dawson, CMC
City Clerk
Bv
Susan Caputo
Deputy City Clerk
SANTA CLARITA REDEVELOPMENT AGENCY
23920 Valencia Boulevard Santa Clarita, CA 91355
SENATE BILL 53 PROGRAM
Newhall Redevelopment Project
RSG
INTELLIGENT COMMUNITY DEVELOPMENT
Adopted June_, 2007
ROSENOW SPEVACEK GROUP INC.
309 WEST 4TH STREFT
SANTA ANA. CALIrORNIA
92701-4502
T 714 541 4585
F 714 5411175
E tNFO&WEBRSG.COM
WEBRSG.COM
SENATE BILL 53 PROGRAM
Newhall Redevelopment Project
INTRODUCTION
This document is the Senate Bill 53 Program CSB 53 Program") for the Newhall Redevelopment
Project C'Project") of the Santa Clarita Redevelopment Agency ("Agency"). Section 33342.7 of the
California Community Redevelopment Law, Health and Safety Code requires the City
Council to prepare and adopt this SB 53 Program by ordinance. The purpose of this SB 53
Program is to describe the Agency's program to acquire real property by eminent domain.
BACKGROUND
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The Agency was created by the City of Santa Clarita ("City") City Council on November 28, 1989
by Ordinance No. 89-27 to undertake redevelopment activities that remove physically and
economically blighted conditions that inhibit and continue to plague economic growth in the City.
The Agency's first and only redevelopment project area to date was established by the City Council
on July 8, 1997 by Ordinance No. 97-12. The Redevelopment Plan for the Newhall
Redevelopment Project C'Redevelopment Plan") has not been amended since its original adoption.
The Redevelopment Plan governs the use of redevelopment tools within the 913.63 -acre Newhall
Redevelopment Project Area C'Project Area"), as shown in Exhibit 1 below. The Project Area
contains retail, industrial, public and residential properties generally located along the Lyons
Avenue and San Fernando Road corridors. The historic Downtown Newhall area, nearly 2,000
residential units and the Metrolink station are also within the Project Area boundaries.
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Newhall Redevelopment Project
EXHIBIT 1: NEWHALL REDEVELOPMENT PROJECT AREA
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GOALS OF THE NEWHALL REDEVELOPMENT PLAN
The Newhall Redevelopment Plan sets out certain redevelopment goals for the Project Area and to
encourage the use of financial, land use, and land assembly tools to achieve these goals. The
following strategies and objectives are those relevant to land assembly activities authorized in the
Plan:
Develop programs and incentives for the rehabilitation of old, obsolescent and deteriorating
structures in the Project Area.
Promote the comprehensive planning, redesign, replanning, reconstruction, and/or
rehabilitation in such a manner as to achieve a higher and better utilization of the land within
the Project Area.
Provide for adequate parcels and required public improvements to induce new construdon
and/or rehabilitation by private enterprise.
Consolidate parcels as needed to induce new or expanded, centralized, commercial
development in the Project Area.
Remove economic impediments to land assembly and in -fill development in areas that are not
properly subdivided for development or redevelopment.
EMINENT DOMAIN AUTHORITY IN REDEVELOPMENT PLAN
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The Newhall Redevelopment Plan authorizes the Agency to acquire property by a number of
means including gift, negotiated purchase, or under certain circumstances eminent domain (also
known as condemnation).
Specifically, Section 321 of the Newhall Redevelopment Plan reads:
"The Agency may acquire, but is not required to acquire, any Real Property located in the Project
Area by gift, devise, exchange, purchase or any other lawful method, including eminent domain.
The eminent domain provisions of this Plan do not apply to any Real Property which has been
continuously occupied as a residence during the 90 -day period preceding the adoption by Agency
of a resolution of necessity for acquisition of the property. Eminent domain proceedings, if usect
must be commenced within twelve (12) years from the effeclive date of the ordinance adopting this
Plan. Such time limit may only be extended by further amendment to this Plan.
The Agency is authorized to acquire structures without acquiring the land upon which those
structures are located. The Agency is also authorized to acquire any interest in Real Properly less
than a fee.
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Properties may be acquired and cleared by the Agency if a determination is made that one or more
of the following conditions exist
1. The buildings andlor structures must be removed in order to assemble land into parcels
of reasonable size and shape to eliminate an impediment to optimal land development;
2 The buildings andlor structures are substandard as demonstrated by an inspection of
the property by the Building and Safety Division of the City of Santa Clarfia;
3. The buildings andlor structures must be removed in order to eliminate an environmental
deficiency, including, but not limited to, incompatible land uses and small and irregular
lot subdivisions,
4. The buildings andl or structures must be removed to provide land fbr needed public
facilities, including among others, rights-of-way, public parking facilities, open space, or
public utilities,
5. The acquisition ofproperty is allowed by the Calithmia Community Redevelopment Law
and will promote the implementation of the Plan.
Other provisions of this section notwithstanding, the Agency she# not acquire from any of its
members or officers any property or interest in property except through eminent domain
proceedings.
The Acquisition of Personal Property is discussed in Section 322 of the Plan. "Generally, personal
property shall not be acquired. However, where necessary for the execution of this Plan, the
Agency is authorized to acquire personal property in the Project Area by any lawful means."
WHY IS EMINENT DOMAIN NEEDED BY THE AGENCY?
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Though it has never been used by the Agency, eminent domain is an essential component of the
Agency's redevelopment program, where consolidation of undeveloped and underdeveloped lots is
one of the many reasons why redevelopment exists in the City. The Project Area is fraught with
numerous instances of conflicting land uses and undersized parcels under multiple ownership that
make it very difficult for the private sector to invest in redevelopment projects. By today's
standards, larger parcels are needed to achieve successful development in this area.
The Agency has had eminent domain authority as an option to address projects in the Project Area
since 1997. Under the Law, the time limit on eminent domain lasts for 12 years, unless extended
by amendment. The time limit will expire on July 8, 2009. Under the Redevelopment Plan,
occupied residential property is exempt from eminent domain. This is true even in areas when
residential uses exist in commercial zones in which long-term, recycling of these nonconforming
residential uses in commercial zones is a possibility.
The goals of the Redevelopment Plan cannot be addressed without the ability to acquire and
assemble property. With eminent domain, the Agency has the ability to become more involved in
achieving the Redevelopment Plan goals, by removing fractured ownership, creating larger, more
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Newhall Redevelopment Project
developable parcels, and removing incompatible and conflicting uses. While relatively few
acquisition projects may require the Agency to implement its eminent domain authority, the ability
to use this tool can also be essential in negotiations to acquire property. This program is not
proposing that any particular property be acquired through the use of eminent domain at this time.
Simply because properties are located in an area where the Agency is permitted to use eminent
domain does not necessarily mean that a property will in fact be acquired by the Agency.
PROPERTY ACQUISITION PROCESS
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In the event that eminent domain is necessary, the Agency is required as a public agency to follow
a process prescribed in state law before a property can be condemned. At present, the process
involves the following major steps and actions:
If property is offered for sale (by owner or through a broker/agent) the Agency may discuss
and negotiate the purchase with the owner (or broker/agent) as any other buyer.
If the property is not for sale but the Agency is interested in buying the property, the Agency
must undertake certain steps before it can acquire the property:
The Agency must appraise the property. A written "notice to appraisd* must be sent to the
property owner and the property owner has the right to accompany the appraiser on a site
visit.
If the Agency decides to make an offer, the Agency must offer the appraised value and
provide the property owner with certain information concerning how the appraised price
was determined.
The Agency must offer to pay the reasonable costs, not to exceed $5,000, of an
independent appraisal ordered by the owner of the property that the Agency offers to
purchase under a threat of eminent domain, as specified, at the time the Agency makes
the offer to purchase the property.
Once the offer is made, the Agency and property owner are to negotiate for a reasonable
period of time, usually up to 30 days, to see if the parties can arrive at a negotiated
agreement.
If a negotiated agreement cannot be reached, the Agency cannot acquire the property
unless the Agency has current condemnation authority in its Redevelopment Plan.
If the Agency has conclemnafion authority and desires to consider acquisificin by
condemnation, the Agency must first hold a hearing and give notice of that hearing to the
property owner who has the right to appear and be heard concerning the proposed
acquisition by condemnation.
If after the condusion of the hearing the Agency desires to proceed with the acquisition by
condemnation, it cannot do so unless it adopts, by a 2/3 "super majority" of the Agency
board, a "resolution of necessity" that identifies the public use for the property and make
other findings required by California Eminent Domain Law.
If the resolution of necessity is adopted, the Agency may then proceed to file a court action
seeking acquisition of the property by condemnation, but must also at that time deposit in
court the full amount of probable compensation to be paid to the property owner (normally
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the appraised value).
The Agency, when it files the condemnation action or later, may seek an order of
possession so it can gain possession of the property while the litigation proceeds
concerning the value of the property. The owner may also challenge the Agencys right to
use its condemnation authority.
The condemnation litigation then proceeds until its conclusion (or until a settlement is
reached).
If a court finds, on motion of the defendant, that the offer of the Agency was unreasonable
and the offer of the defendant was reasonable in light of the evidence admitted and the
compensation awarded in the proceeding, then the costs allowed shall include the
defendant's litigation expenses. Litigation expenses are defined in Section 1250.410 (e) as
"the partys reasonable attorneys fees and costs, including reasonable expert witness and
appraiser fees."
Because condemnation involves purchasing private property for a public purpose, federal
and state laws offer the following benefits to the owner whose property is acquired through
condemnation:
a The redevelopment agency must pay cash unless the owner desires otherwise.
The property owner receives certain tax benefits, such as a right to reinvest the sale
proceeds within 2 calendar years (3 years for business property) before incurring
capital gains liabilities, and the property owner may transfer the assessed value of the
property purchased through condemnation to a new property acquired by the property
owner, provided that the value of the new property does not exceed 110% of the
value of the condemned property.
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