HomeMy WebLinkAbout2008-05-13 - AGENDA REPORTS - NEWHALL REDEVELOPMENT TIME (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Darren Hernandez
DATE: May 13, 2008
SUBJECT: SECOND READING AND ADOPTION OF AN ORDINANCE
AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT
TO THE NEWHALL REDEVELOPMENT PROJECT AREA
PURSUANT TO THE PROVISIONS OF SECTION 33333.2 OF
THE CALIFORNIA HEALTH AND SAFETY CODE
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council adopt an ordinance entitled "AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING CERTAIN TIME
LIMITATIONS WITH RESPECT TO THE NEWHALL REDEVELOPMENT PROJECT
AREA, PURSUANT TO THE PROVISIONS OF SECTION 33333.2 OF THE CALIFORNIA
HEALTH AND SAFETY CODE"
BACKGROUND
At the April 22, 2008 meeting, the City Council introduced an Ordinance amending the
Redevelopment Plan to extend its time limitations, pursuant to provisions of section 33333.2 of
the California Health and Safety Code, and passed it on to a second reading.
Pursuant to California Community Redevelopment Law (codified in Part 1 of Division 24 of the
California Health and Safety Code) (the "Redevelopment Law"), the Redevelopment Plan (the
"Redevelopment Plan") for the Newhall Redevelopment Project Area (the "Project Area") of the
City of Santa Clarita Redevelopment Agency (the "Agency"), contains the following limitations:
Plan Effectiveness: July 8, 2027
Last Date to Collect Tax Increment Revenues (other than Housing Fund purposes): July 8, 2042
Last Date to Incur Debt (other than Housing Fund debt): July 8, 2017
Maximum Bonded Indebtedness Supported by Tax Increment Revenues: $60,000,000
To help balance the State budget, every Redevelopment Agency was required to remit a portion
of their revenue to the Educational Revenue Augmentation Fund (ERAF). To offset the financial
burden caused by the ERAF payment, state legislation passed in 2003 (SB 1045) and 2004 (SB
1096) allowed redevelopment agencies to amend their redevelopment plans by ordinance to
extend by up to one year, the time limit on the effectiveness of their redevelopment plans and the
time limit to repay indebtedness or receive property taxes pursuant to Section 33670 for each
ERAF payment made in 2003-04, 2004-05, and 2005-06.
The City can amend its Redevelopment Plan to extend by one year the Redevelopment Plan's
effectiveness (to July 8, 2028) and the last day to repay indebtedness and collect tax revenues (to
July 8, 2043). The proposed amendment will provide the City with an additional year to collect
tax increment revenue, thus increasing the potential size of any future Redevelopment Agency
bond issue and the ability of the Agency to repay loans from the City's General Fund.
ALTERNATIVE ACTIONS
1. The City Council may choose not to lengthen time limitations of Project Area.
2. Other action as determined by the City Council.
FISCAL IMPACT
Additional year of tax increment revenue for the Redevelopment Agency. This will enhance the
ability of the Redevelopment Agency to issue bonds and/or repay loans from the City's General
Fund.
ATTACHMENTS
Ordinance
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, AMENDING CERTAIN
TIME LIMITATIONS WITH RESPECT TO THE NEWHALL
REDEVELOPMENT PROJECT AREA PURSUANT TO THE
PROVISIONS OF SECTION 33333.2 OF THE CALIFORNIA
HEALTH AND SAFETY CODE
WHEREAS, the City of Santa Clarita Redevelopment Agency (the "Agency") is a public
body, corporate and politic duly created, established and authorized to transact business and
exercise its powers, all under and pursuant to the Community Redevelopment Law (Part 1 of
Division 24 of the Health and Safety Code of the State of California and the acts amendatory and
supplemental thereto and referred to herein as the "Law"); and
WHEREAS, the City of Santa Clarita (the "City") formed the Newhall Redevelopment
Project Area (the "Project Area") by adoption of its Ordinance No. 97-12 on July 8, 1997;
WHEREAS, the Redevelopment Plan with respect to the Project Area includes a date for
the termination of activities of the Project Area of July 8, 2027 and a time limit of July 8, 2042 to
repay indebtedness or receive property taxes pursuant to the Section 33670;
WHEREAS, Section 33681.9, added to the Law by Senate Bill 1045 (Statutes of 2003,
Chapter 260) ("SB 1045"), took effect on September 2, 2003, and requires the Agency during the
2003-04 fiscal year to make a payment for deposit into the County of Los Angeles Educational
Revenue Augmentation Fund ("ERAF"); and
WHEREAS, with respect to redevelopment plans adopted on or after January 1, 1994,
Section 33333.2 was amended by SB1045 to provide that when a redevelopment agency is
required to make a• payment pursuant to Section 33681.9 the legislative body may amend the
redevelopment plan to extend by one year, for each year in which the required payments are
made, the time limit on the effectiveness of the redevelopment plan and the time limit to repay
indebtedness or receive property taxes pursuant to Section 33670, by adoption of an ordinance,
without the necessity of compliance with Section 33354.6, or Article 12 (commencing with
Section 33450) or any other provision of the California Redevelopment Law related to the
amendment of redevelopment plans; and
WHEREAS, the City Council desire that the Redevelopment Plan be amended to extend
by one year, the time limit on the effectiveness of the Redevelopment Plan and the time limit to
repay indebtedness or receive property taxes pursuant to Section 33670; and,
The City Council of the City of Santa Clarita, California, does hereby ordain as follows:
SECTION 1. Pursuant to Section 33333.2(c), except as otherwise permitted or required
by law, the Redevelopment Plan is hereby amended to extend the time limit on the effectiveness
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of the Redevelopment Plan to July 8, 2028.
SECTION 2. Pursuant to Section 33333.2(c), except as otherwise permitted or required
by law, the Redevelopment Plan is hereby amended to extend the time limit on the payment of
indebtedness incurred and receipt of property taxes pursuant to Section 33670, with respect to the
Project Area, to July 8, 2043.
SECTION 3. Except as amended by this Ordinance, the Redevelopment Plan is
unchanged and is in full force and effect in accordance with its terms.
SECTION 4. If any part of this Ordinance is held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, for any reason, such decision shall not affect the
validity of the remaining portions of this Ordinance and the City Council hereby declares that it
would have passed the remainder of this Ordinance if such invalid or unconstitutional portion
thereof had been deleted.
SECTION 5. 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 13th day of May 2008.
ATTEST:
CITY CLERK
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MAYOR
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Ordinance No. 08 was regularly introduced and placed upon its first reading
at a regular meeting of the City Council on the 13th day of May 2008. That thereafter, said
Ordinance was duly passed and adopted at a regular meeting of the City Council on the 13th day
of May 2008, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance No.
and was published in The Signal newspaper in accordance with State Law (G.C. 40806).
CITY CLERK
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL ORDINANCE
I, 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. 08 , adopted by the City Council of the City
of Santa Clarita, CA on April 22nd, 2008, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
, 20_
Sharon L. Dawson, CMC
City Clerk
By
Susan Caputo
Deputy City Clerk
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