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HomeMy WebLinkAbout2011-03-15 - RESOLUTIONS - REAL PROPERTY REVENUE TRANSFER (4)141:10619811Isla- CSInIM ' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, CONSENTING TO THE TRANSFER OF REAL PROPERTY, BOND PROCEEDS AND TAX INCREMENT REVENUES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA TO THE CITY FOR THE PURPOSE OF CONSTRUCTING AND COMPLETING THE OLD TOWN NEWHALL LIBRARY PROJECT WHEREAS, the Redevelopment Agency of the City of Santa Clarita (Agency) is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California (Law), constituting Part 1 of Division 24 of the Health and Safety Code of the Law, including the power to expend funds for public improvements for the benefit of the Newhall Redevelopment Project Area (Project Area); and WHEREAS, the City of Santa Clarita is the legislative body for the community in which the Project Area is located; and WHEREAS, on November 22, 2005, the City Council approved the Downtown Newhall Specific Plan (DNSP). During that meeting, the City Council also certified the ' Environmental Impact Report that examined the many attributes of the DNSP's vision and determined the benefits of implementing the plan would be substantial for the entire community. The DNSP was adopted to transform Old Town Newhall into a thriving, mixed-use, pedestrian -oriented urban village with a series of economic engines. The DNSP identifies a public library to visually anchor and define the north end of Main Street; and WHEREAS, after meeting with representatives from the City Council, Agency, and Newhall community, and incorporating ideas from each, the City Council and Redevelopment Agency approved the architectural design for the construction of a 30,000 -square -foot, two-story public library in Old Town Newhall on May 11, 2010. The new library will be of steel moment frame construction, certified as Leadership in Energy and Environmental Design (LEED) Silver, on a 2.65 -acre site, including site grading and a landscaped parking lot; and WHEREAS, the provision of public improvements is consistent with the Agency's Five -Year Implementation Plan in that construction of the Old Town Newhall Public Library (Project) constitutes a project listed in the Plan to transform Old Town Newhall into a thriving, mixed-use, pedestrian -oriented urban village with a series of economic engines that visually anchors and defines the north end of Main Street, meeting the goals and objectives of the Plan; and ' WHEREAS, the Agency has recently completed assembly of the complete Project site, consisting of 24513, 24522, 24533, and 24535 Railroad Street; 24515, 24519, 24527, and 24509 Spruce Street; Assessors parcels numbered 2831-006-900, 2831-006- 904, 2831-006-905, 283.1-006-003, 2831-006-901, 2831-006-028, 2831-006-902, 2831- I 006-903, 2831-006-906; and the vacated public streets adjacent thereto (collectively the Site); and WHEREAS, acquisition cost for the above -referenced real properties totals $6,512,230.67. Of that amount, $782,326 was paid for with Agency tax increment funds. The balance of $5,729,904.67 was paid for with Agency bond proceeds. The total cost of the use of such bond proceeds for the land acquisition (proceeds plus interest over the life of the bonds) is $11,646,122.95. Such interest is paid with Agency tax increment; and WHEREAS, in addition to land acquisition costs, to date, $5,148,223.60 in Agency bond proceeds has been spent in pre -construction activities including, but not limited to, design, engineering, installation of a new waterline, utility relocations, rough grading, street improvements and staff oversight; and WHEREAS, the remaining budget to construct the Library Project to completion is $17,133,351.73. Of this amount, $165,480 is budgeted to come from tax increment, while $16,967,871.73 is budgeted to be paid for with bond proceeds. The total cost of the use of such bond proceeds for the construction of the Library Project (proceeds plus interest over the life of the bonds) is $49,649,261.02. Such interest is paid with Agency tax increment; and WHEREAS the City Council and Agency Board on December 14, 2010, made the I following findings with respect to the construction of the Project: a. The Project is of benefit to the Project Area as there are inadequate public facilities within the Project Area and the construction of a public library will provide those needed public facilities; and b. No other reasonable means of financing the Project are available to the community as the City is using its funds to undertake other public improvements throughout the City; and c. The payment of funds for the Project will assist in the elimination of blighting conditions inside the Project Area and once complete, the Project will assist in attracting new businesses and residential developments to the area as the Project will be a positive public amenity within the Project Area; and d. The use of Agency funds for the construction of the Project is consistent with the Agency's adopted implementation plan per Health and Safety Code Section 33490; and WHEREAS the Agency is authorized, pursuant to the California Redevelopment Law and with the consent of the City to expend Agency tax increment and bond proceeds for the construction of public facilities and to acquire real property for the same and dedicate or otherwise transfer such real property to the City; and ' ' WHEREAS legislation recently released by the State of California, if adopted, could effectuate a moratorium on further actions by the Agency with respect to disbursements of funds for construction of the Project and any transfer of the Project site to the City, notwithstanding that the City and Agency have been planning the Project for over five years and have each taken numerous actions to implement same; and WHEREAS, transfer of Agency tax increment and bond proceeds, as well as the Project site to the City at this time is necessitated by the actions of the State to avoid frustration of the City's and Agency's objectives with respect to the Project, as well as to avoid negative impacts to the Project Area and the City as a whole. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. Recitals. The City Council hereby finds that the above recitals are true and correct and incorporates them herein. SECTION 2. City Consent to Transfer of Real Property. The City Council hereby consents to the transfer of the Site to the City by deed from the Agency to the City, and without payment therefore, as the consideration for the transfer will be the ongoing operation of the Library, which will assist in the elimination of blight. The Council finds and determines that those findings that support the use of Agency bond ' proceeds and tax increment for construction of the Project also support the use of same for acquisition of the Site and transfer of the Site to the City without monetary consideration. The Mayor, City Manager, and City Clerk are authorized and directed to execute such instruments and take such actions as are necessary to effectuate the transfer of Title from the Agency to the City. The deed shall include the required redevelopment law non-discrimination covenants. SECTION 3. City Consent to Transfer of Construction Funds. The City Council consents to receipt of Agency bond proceeds and tax increment funds in the amount not to exceed $17,133,351.73 to be held and appropriated by the City for construction of the Library Project, including site grading, landscaped parking lot, architectural design and construction support services, geotechnical and soils testing services, construction staking, environmental consulting services, materials testing services, construction inspection services, environmental support services, project support services, and labor compliance services. To the extent that excess funds exist after completion of the Library Project, the City shall remit such funds back to the Agency. To the extent that additional Agency funds are required for completion of the Library Project, nothing in this resolution is intended to prohibit a further transfer of funds upon approval of the Agency Board and City Council. SECTION 4. Effective Date. This Resolution shall take effect from and after its ' date of passage, approval, and adoption. SECTION 5. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 15th day of March, 2011. ATTEST: CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Kevin Tonoian, Acting City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a special meeting thereof, held on the 15th day of March, 2011, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS Ender, Ferry, Kellar, McLean None ABSENT: COUNCILMEMBERS: Ferry STATE OF CALIFORNIA ) ' COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 11-9, adopted by the City Council of the City of Santa Clarita, California on March 15, 2011, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this _ day of 20 1 City Clerk By Deputy City Clerk