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
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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
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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 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
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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.
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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 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.
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( APPROVED AND ADOPTED this 27 day of September 2011.
Mayor
(SEAL)
ATTEST:
Interim City lerk
APPROVE AS TO FORM:
�1 �4
City Attorney
4w
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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)
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