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2011-32 RESOLUTION NO. 2011-32 A RESOLUTION OF THE CITY OF GRAND TERRACE APPROVING AN AGREEMENT TO TRANSFER TAX INCREMENT BY AND BETWEEN THE CITY OF GRAND TERRACE AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, the Community Redevelopment Agency of the City of Grand Terrace ("Agency") is a community redevelopment agency organized and existing under the California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ("CRL") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council("City Council") of the City of Grand Terrace("City"); and WHEREAS, the City Council approved a redevelopment plan for a redevelopment project and project area (the "Original Plan' and `Original Project Area", respectively, by Ordinance No. 25 adopted September 27, 1979, which has subsequently been amended by an amendment ("Amendment No. 1"), as approved by Ordinance No. 31 adopted on January 17, 1980, an additional amendment ("Amendment No. 2") as approved by Ordinance No. 52 on July 15, 1981, an additional amendment("Amendment No. 3")as approved by Ordinance No. 187 on July 22, 1999, an additional amendment ("Amendment No. 4") as approved by Ordinance No. 202 on September 12, 2002, an additional amendment ("Amendment No. 5") as approved by Ordinance No. 212 on July 22, 2004, and an additional amendment ("Amendment No. 6") as approved by Ordinance No. 250 on May 11, 2010 approving an amended and restated redevelopment plan (herein,the"Amended Redevelopment Plan') for the project area as established by Ordinance No. 25 and thereafter amended as set forth above under the Amended Redevelopment Plan (the"Amended Project Area"); and WHEREAS. Parts 1.8, 1.95 and 1.9 of Division 24 of the Health and Safety Code were added to the CRL by ABXI 26 and ABXI 27, which measures purport to become effective immediately. ABXI 26 and ABXI 27, which are trailer bills to the 2011-12 budget bills, were DOCSOC/1499774v3/022092-0000 4r_ approved by both houses of the Legislature on June 15, 2011 and signed by the Governor on June 28, � 2011; and WHEREAS, Part 1.85 of the CRL ("Part 1.85") provides for the statewide dissolution of all redevelopment agencies, including the Agency, as of October 1, 2011, and provides that, thereafter, a successor agency to administer the enforceable obligations of the Agency and otherwise wind up the Agency's affairs, all subject to the review and approval by an oversight committee; and WHEREAS, Part 1.8 of the CRL ("Part L8") provides for the restriction of activities and authority of the Agency in the interim period prior to dissolution to certain "enforceable obligations" and to actions required for the general winding up of affairs, preservation of assets, and certain other goals delineated in Part 1.8; and WHEREAS, the dissolution of the Agency would be detrimental to the health, safety, and economic well-being of the residents of the City and cause irreparable harm to the community and the Redevelopment Project, because, among other reasons, the redevelopment activities and projects made possible, implemented, and funded by the Agency are highly significant and of enduring benefit to the community and the City, and are a critical component of its future; and WHEREAS, Part 1.9 of the CRL ("Part 1.9") provides that a redevelopment agency may continue in operation if a city or county that includes a redevelopment agency adopts an ordinance agreeing to comply with and participate in the Alternative Voluntary Redevelopment Program established in Part 1.9 (`Program"); and WHEREAS, as a condition of the Agency's continued existence and operation of its redevelopment agency, the City is required to make certain annual remittances to the county auditor-controller pursuant to Chapter 3 of Part 1.9, beginning with a larger upfront remittance for nOCsoC/I 499774v3t022092-0000 the 2011-2012 fiscal year ("First Remittance"), to be paid in two equal installments on January 15, 2012 and May 15,2012; and WHEREAS, the City's needs are such that it can commit to spend the funds received from the Agency pursuant to the Agreement to Transfer Tax Increment (defined below) to finance activities within the Redevelopment Project that are related to accomplishing the goals of the Redevelopment Project, including without limitation: the promotion of public improvement facilities; the provision of adequate roadways to correct street alignment problems, to provide adequate circulation and access to highways; the provision of needed improvements to the community's recreational, cultural and other community facilities to better serve the Amended Project Area; to eliminate and prevent the spread of blight and deterioration; the enhancement and renovation of businesses within the Amended Project Area; and expanding the resource of developable land by ( making underutilized land available for development; and WHEREAS, the City has adopted the ordinance required by Part 1.9 in order to allow the Agency to continue in operation and performing its functions (`Ordinance"); and WHEREAS,the City and Agency desire to enter into an agreement pursuant to CRL Section 34194.2 whereby the Agency shall make an initial transfer of a portion of its tax increment to the City in an amount equal the First Remittance, and thereafter transfer amounts of tax increment equal to any subsequent remittance which the City is required to make to the county auditor-controller pursuant to the City s participation in the Program ("Agreement to Transfer Tax Increment");and WHEREAS, the City is aware that the validity, passage, and applicability of ABXI 26 and ABX 1 27 have become the subject of a judicial challenge; and DOCSOC/1499774v3/022092-0000 6 WHEREAS, the City, by the adoption of this resolution, does not represent, disclaim, or take any position whatsoever on the issue of the validity of ABXI 26 or ABXI 27, but rather the City seeks to comply with the Constitution and laws of the State of California, including Part 1.9, in order to preserve the ability of the Agency to continue to operate and thereby benefit the community; and. WHEREAS, various petitioners have filed an action in the matter of California Redevelopment Association et al. v. Ana Matosantos, as Director, etc., et al (the "Redevelopment Lawsuit")which challenges the validity of ABX 1 26 and ABX 1 27;and WHEREAS, the Supreme Court has issued a partial stay in connection with the Redevelopment Lawsuit; and WHEREAS,the Agency and City intend that the effectiveness of the Agreement to Transfer (, Tax Increment is subject to a ruling by the Supreme Court which determines that ABXI 26 and ABXI 27 are constitutional and valid; and WHEREAS, the City has duly considered all other related matters and has determined that the City's entering into the Agreement to Transfer Tax Increment is in the best interests of the City, and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. NOW,THEREFORE,BE IT RESOLVED: Section 1. The foregoing recitals are incorporated into this resolution by this reference, and constitute a material part of this resolution. DOCSOC/14997740/0220920000 Section 2. That certain Agreement to Transfer Tax Increment to be entered into pursuant to CRL Section 34194.2, between the Agency and the City in the form submitted herewith is hereby approved and the City Manager is hereby authorized and directed to execute such agreement and to administer such agreement in accordance with its terms on behalf of the City; provided that the foregoing portion of this Section 2 is subject to the final determination by a court of competent jurisdiction which determines that ABXI 26 and ABX 1 27 are constitutional and valid. Section 3. Each of the City Attorney and Stradling Yocca Carlson & Rauth, a Professional Corporation, is hereby authorized to the greatest extent permitted by law, to bring an action or appear in an action in the Superior Court pursuant to CRL Sections 33500 and 33501 of the Act to determine the validity of the ordinance referred to in this resolution, or the validity of any bonds issued or contemplated to be issued by the agency or other material contracts of the Agency, or any findings of the governing body of the City Council related thereto, upon the determination of the City Manager that such action is reasonably necessary or appropriate to facilitate the consummation of any agency transaction for which governing board approval has been given. Section 4. This Resolution shall be effective immediately upon adoption, subject to Section 2, above. Section 5. The City Clerk or Interim City Clerk shall certify to the adoption of this resolution. DOCSOC/1499774v3/022092-0000 ( APPROVED AND ADOPTED this 27 day of September 2011. Mayor (SEAL) ATTEST: Interim City lerk APPROVE AS TO FORM: �1 �4 City Attorney 4w DOCSOC/1499774v3/022092-0000 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss. CITY OF GRAND TERRACE ) 1, Tracey R. Martinez, Interim City Clerk of the City of Grand Terrace,hereby certify that the foregoing resolution was duly adopted by the City Council of the City of Grand Terrace at its regular meeting held on the 27 day of Sept embeV 11, and that it was so adopted by the following vote: AYES: Councilmenbers NcNaboe, Sandoval and Hays; Mayor Pro Teat Garcia NOES: None ABSENT: Mayor Stanckievitz ABSTAIN: None Interim Ci lerk o the City ofG3d Terrace (SEAL) DOCSOC/1499774v3/022092-0000