2011-11 r RESOLUTION NO. 2011-11
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF GRAND TERRACE APPROVING
THE AGREEMENT TO TRANSFER TAX INCREMENT BY AND
BETWEEN THE AGENCY AND 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, 1.85 and 1.9 of Division 24 of the Health and Safety Code were
added to the CRL by ABX1 26 and ABX1 27, which measures purport to become effective
f
immediately. ABX1 26 and ABX1 27, which are trailer bills to the 2011-12 budget bills, were
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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 1.8") 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
i
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
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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 Agency is aware that the validity, passage, and applicability of ABX1 26
and ABX1 27 have become the subject of a judicial challenge; and
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WHEREAS, the Agency, by the adoption of this resolution, does not represent, disclaim, or
take any position whatsoever on the issue of the validity of ABX1 26 or ABX1 27, bqt 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 ABX1 26 and ABX1 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 ABX1 26 and
ABX1 27 are constitutional and valid; and
WHEREAS, the Agency has duly considered all other related matters and has determined .
that the Agency'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.
e
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.
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/ 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 Executive Director is hereby authorized and directed to.execute such agreement and to
administer such agreement in accordance with -its terms on behalf of the Agency; provided that the
foregoing portion of this Section 2 is subject to the final determination by a coiVt of competent
jurisdiction which determines that ABX1.26 and ABX1 27 are constitutional and valid.
Section 3. Each of the general counsel of the Agency 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 brought in the Superior Court pursuant to Sections 33500 and 33501 of the
Act to determine the'validity of the agreement 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 or the City Council related thereto, upon the determination of the
Executive Director.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 5. This Resolution shall be effective immediately upon adoption, subject to Section
2, above.
Section.6. The Agency Secretary or Interim Agency Secretary shall certify to the adoption
of this resolution.
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APPROVED AND ADOPTED this 27 day of September,2011.
IZI
Chairman
Interim Agc' c5 -SAretar
APPROVE AS TO F M:
Agency General duns
t
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-� STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF.GRAND TERRACE.
I,.Tracey R. Martinez, Interim Secretary. of the Community Redevelopment Agency of the
City of Grand Terrace, hereby certify-that the foregoing resolution was duly adopted by the Board of
said Agency at its regular meeting held on the 27 day of Septembe2.011, and that it was'so adopted
by.the following vote:
AYES: Councilmctb0-4rs McNaboe, Hays and Sandoval;.Mayor Pro Tem Garcia
NOES: Nb�nl
ABSENT: Maypr Stanckiewitz
ABSTAIN: None .
Interim Sec tart' df the Comm ity.Redevelopment
Agency of the City of Grand Tee
(SEAL)
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