2011-18 RESOLUTION NO.g011-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE DECLARING ITS INTENTION TO ENACT
AN ORDINANCE WHEREBY THE CITY SHALL ELECT TO
COMPLY WITH AND PARTICIPATE IN THE ALTERNATIVE
VOLUNTARY REDEVELOPMENT PROGRAM CONTAINED IN
PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH
AND SAFETY CODE
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 ABXI 26 and ABXI 27, which measures purport to become effective
kw immediately. ABXI 26 and ABXI 27, which are trailer bills to the 2011-12 budget bills, were
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,
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
the 20I1-2012 fiscal year ("First Remittance"), to be paid in two equal installments on January 15,
2012 and May 15, 2012; and
WHEREAS, the City expects it will have sufficient moneys and revenues to fund an amount
equal to the City's payment of the First Remittance and further expects to have sufficient moneys and
revenues to fund the subsequent annual remittances required by Part 1.9; 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 intends to adopt 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 intends to adopt the Ordinance and desires to forestall the dissolution
of the Agency until November 1, 2011 to allow the City sufficient time to enact the Ordinance; and
WHEREAS,the City and Agency intend 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 to 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
ABXI 27 may become the subject of ajudicial challenge; and
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, the City has duly considered all other related matters and has determined that
the City's participation in the Program is in the best interests of the Agency, 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, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE
DOES RESOLVE AS FOLLOWS:
Section I. The foregoing Recitals are incorporated into this Resolution by this reference,
and constitute a material part of this Resolution.
Section 2. Pursuant to CRL Section 34193(b), the City hereby expresses its intent to adopt
the Ordinance to comply with Part 1.9. This resolution is that "nonbinding resolution of intent" referred
to in CRL Section 34193(b) and shall be interpreted and applied in all respects in accordance with such
section and Part 1.9,to the fullest extent permitted by law.
♦'
Section 3. On or before October I, 2011, the City Manager is hereby authorized and
directed to notify the county auditor, the State Department of Finance, and the Controller of the State
concerning the resolution, in accordance with Section 34193(b).
Section 4. Each of the City Attorney and Stradling Yocca Carlson & Rauth, a Professional
Corporation is hereby authorized to bring an action in the Superior Court pursuant to CRL Sections
33500 and 33501 to determine the validity of the ordinance referred to in this resolution, or the validity of
any bonds contemplated to be issued by the agency or other material contracts of the Agency, or any
findings of the City Council related thereto, upon the determination of the City Council 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. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 12thday of July , 2011.
1_k
Mayor
(SEAL)
ATTEST:
City Clerk
APPROVE AS TO FORM:
City Attorney
V
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF GRAND TERRACE )
I, Brenda Mesa, City Clerk of the City of Grand Terrace, hereby certify that the foregoing
resolution was duly adopted by the City Council of said City at a regular meeting of said City
Council held on the 12 day of duly ,2011, and that it was so adopted by the following vote:
AYES: Councilmembers: Sandoval, MCNaboe, Nays; Mayor Pro Tem Garcia
Mayor Stanckiewitz
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
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City Clerk of the City of the City of Grand Terrace
(SEAL)
v