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HomeMy WebLinkAbout1995-01-17; City Council; 12988; Carlsbad Redevelopment Plan Time LimitsCII- OF CARLSBAD - AGENC- BILL &g 0 8 &k&3 . . 4B# )a, 988 TITLE: HTG./--!7-~~ AMENDMENTS TO CARLSBAD VILLAGE REDEVELOPMENT PLAN - TIME LIMITS lEPT.- RECOMMENDED ACTION: If Council concurs, staff recommends that the City Council INTRODUCE Ordinance No. NS - 3 OBAPPROVING amendments to various time limits within the Carlsbad Village Redevelopment Plan. ITEM EXPLANATION: On October 6, 1993, Governor Wilson signed AB 1290 which took effect on January 1, 1994. Entitled the Community Redevelopment Law Reform Act of 1993, the bill includes the most sweeping redevelopment changes in years. The changes affect both existing project areas as well as new plan adoptions and amendments. The modifications include changes to the definition of blight, the termination of fiscal review committees and time limits on all project areas. AB 1290 was adopted to address perceived major abuses and problems in redevelopment in a responsible, constructive manner. The bill is intended to refocus the redevelopment process on statewide concerns of alleviating blight, stimulating economic development and providing affordable housing. AB1290 was amended by the enactment of SB732 on September 27, 1994, which made numerous technical and clarifying revisions. With approval of AB 1290, Section 33333.6 of the Community Redevelopment Law established certain limitations on the incurring and repaying of indebtedness, the duration for initiation of redevelopment activities, the receipt of tax increment and the use of eminent domain powers. New limitations apply to every redevelopment plan adopted on or before December 3 1, 1993. Unless a redevelopment plan already contains limitations which comply with the new law, the legislative body (City Council) must adopt an ordinance on or before December 3 1, 1994 to amend the plan by either 1) amending an existing time limit that exceeds the applicable time limit, or 2) establishing time limits that do not exceed the provisions of the law. The following chart highlights the new applicable time limits compared to those currently noted within the existing Carlsbad Village Redevelopment Plan: II Time Limit Type 1 Existing Plan I New Time Limits II Incurring debt I July 7, 2006 I January 1, 2004 II Receipt of tax increment I No limit I July 7, 2016 II Red. Plan Duration I July 7, 2006 I July 7, 2006 II Eminent domain I July 7, 1993 I July 7, 1993 - AB# ww Page 2 - Based on the information provided within the above chart, there are only two (2) time limits within the Carlsbad Village Redevelopment Plan which need to be amended: 1) time limit on incurring debt, and 2) time limit on receipt of tax increment. Time Limit for Incurrincr Debt The time limit noted for incurring debt within the existing Carlsbad Village Redevelopment Plan was set at twenty-five years from the date of plan adoption, which was July 7, 1981. The new law which now applies to the Village Redevelopment Plan indicates that the time limit for incurring debt may not exceed twenty years from date of adoption or January 1, 2004, whichever is later. Staff is recommending that January 1, 2004 be set as the expiration date for incurring debt under the existing Redevelopment Plan to comply with the new state regulations regarding time limits. Time Limit on Receint of Tax Increment The existing Carlsbad Village Redevelopment Plan does not include a time limit for receipt of tax increment. The new law requires that a time limit be set which does not exceed ten (10) years from the termination of effectiveness of the Redevelopment Plan. Since the City may not initiate new redevelopment activities after July 7, 2006, the time limit for receipt of tax increment must be set at July 7, 2016. Although we must set the time limit at July 7, 2016 for receipt of tax increment, the Agency may still collect tax increment after this date for any bond, indebtedness or other obligation authorized by the legislative body or the Redevelopment Agency prior to January 1, 1994. The Agency will not be able to collect tax increment to cover any indebtedness approved after January 1, 1994 and which exceeds the time limit of July 7, 2016. Time Limits on Duration of Redevelonment Activities and Eminent Domain Powers The time limits set forth within the existing Carlsbad Village Redevelopment Plan for the initiation of redevelopment activities (or duration of the plan) and for use of eminent domain powers are consistent with the time limits required under the new regulations. Therefore, no action is necessary to amend these time limits. Amendments to Redevelonment Plan time limits In some cases, the new laws related to redevelopment do allow for time limits which exceed those set forth within the existing Carlsbad Village Redevelopment Plan. For example, the new law does allow the duration of the plan to extend forty (40) years from the date of adoption or January 1, 2009, whichever is later. This new time limit exceeds the time limit that was originally set for the Village Redevelopment Plan (which is July 7, 2006). If the City Council desired to do so, the duration of the Village Redevelopment Plan could be extended to July 7, 2021; this would allow the extension of the time limit on receipt of tax increment to July 7, 2031 but would m change the time limit for incurring debt which would remain at December 3 1, 2003. A ten (10) year extension on the time limit for incurring debt is made available by the new law only if it is necessary to eliminate substantial remaining blight. 2 - AB# M,Wt3 Page 3 As stated previously, the recently approved laws for redevelopment allow the City Council, via a simple ordinance, to 1) amend an existing time limit that exceeds the applicable time limit, or 2) establish a new time limit that does not exceed the provisions of the law. If the City Council desires to extend an existing time limit to the maximum allowed by the new laws, the Council must follow the amendment process outlined within Section 33354.6 of the Health and Safety Code. This amendment process basically requires the Council to adhere to the same procedures followed for adoption of the original plan; this opens the plan to full public review and may subject it to all new requirements established for “mandatory tax increment pass throughs” to other taxing agencies within the area and the redefinition of blight. Staff Recommendation Staff is recommending that the City Council adopt the Ordinance attached as Exhibit 1 which amends the existing Carlsbad Village Redevelopment Plan and brings it into compliance with the new laws regulating redevelopment withih the State of California. At this time, staff is not recommending an extension of the original time limits for initiation of redevelopment activities or for incurring debt. FISCAL IMPACT No fiscal impact. EXHIBITS: l- City Council Ordinance No. ys -3&J approving amendments to various time limits within the Carlsbad Village Redevelopment Plan. 3 - - ORDINANCE.NO. NS-300 A ORDINANCE OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING AND AMENDING CERTAIN LIMITATIONS WITH RESPECT TO THE REDEVELOPMENT PLAN FOR THE CARLSBAD VILLAGE REDEVELOPMENT PROJECT AREA. WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. 9591 on July 7, 1981, approving and adopting the Carlsbad Village Area Redevelopment Plan, hereinafter known as the “Redevelopment Plan”, for the Village Redevelopment Project Area; WHEREAS, the Redevelopment Agency of the City of Carlsbad, hereinafter referred to as the “Agency”, has been designated as the official redevelopment agency to carry out in the City of Carlsbad the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS, in 1993 the California State Legislature enacted the Community Redevelopment Reform Act of 1993 (AB1290), making various amendments to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.), which became effective on January 1, 1994; and WHEREAS, Health and Safety Code Section 33333.6 expressly requires each redevelopment plan adopted prior to December 3 1, 1993, to contain certain restrictions and limitations, which must be imposed prior to December 31, 1994; and CC ORDINANCE NO. PAGE 2 WHEREAS, Health and Safety Code Section 33333.6 expressly provides that such restrictions and limitations be imposed by way of ordinance and shall be deemed to constitute an amendment of the redevelopment plan without the necessity of compliance with Health and Safety Code Section 33450 or any other provision of the Community Redevelopment Law relating to amendment. NOW, THEREFORE, the City Council of the City of Carlsbad, California does ordain as follows: Section 1. Amendment of the Redevelonment Plan for the Carlsbad Village Redevelonment Pro_iect. In accordance with the requirements of the Community Redevelopment Law Reform Act of 1993, and notwithstanding any other provision in the Redevelopment Plan, the City Council hereby amends the Redevelopment Plan for the Carlsbad Village Redevelopment Project as stated herein, and establishes the following limitations, subject to all of the provisions of this Ordinance and further subject to Health and Safety Code Section 33333.6(g) and (h): A. In accordance with Health and Safety Code Section 33333.6(a), the time limit for establishing of loans, advances and indebtedness to be paid with the proceeds of property taxes received pursuant to Health and Safety Code Section 33670, to finance, in whole or in part, the Carlsbad Village Redevelopment Project shall not exceed January 1, 2004. As provided in Health and Safety Code Section 33333.6(a), this limit, however, shall not prevent the Redevelopment Agency of the City of Carlsbad (“Agency”) from incurring debt to be paid from the Low and Moderate Income Housing Fund or establishing more debt in order to fulfil1 the Agency’s housing obligations under Health and Safety Code Section 33413, nor shall this prevent the Agency from refinancing, refunding, or restructuring indebtedness after the time limit if the idebtedness is not increased and the time during which the indebtedness is to be repaid does not exceed the date on which the indebtedness would have been paid. This limit may be extended by amendment in accordance with Health and Safety Code Section 33333.6(a)(2). B. Consistent with Health and Safety Code Section 33333.6(b), the effectiveness of the Redevelopment Plan shall terminate July 7, 2006, after which time the Agency shall have no authority to act pursuant to the Redevelopment Plan, except to pay previously incurred indebtedness and to enforce existing covenants, contracts or other obligations. The Redevelopment Plan may be amended to extend this limitation, within the applicable time limit established by Health and Safety Code Section 33333.6(b), pursuant to Health and Safety Code Section 33354.6. I . _ m 1 z f 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 h r4 CC ORDINANCE NO. NS-300 Page 3 C. In accordance with Health and Safety Code Section 33333.6(c), except as provided in subdivisions (g) and (h) of Health and Safety Code Section 33333.6, the Agency shall not pay indebtedness or receive property taxes, pursuant to Health and Safety Code Section 33670 after ten (10) years from the termination of the effectiveness of the Redevelopment Plan pursuant to Paragraph B., above (July 7, 2016). Section 2. Anplication. The limitations established in this Ordinance shall apply to the Carlsbad Village Redevelopment Project and may only be amended in the manner required and to the extent permitted by law. Section 3. Senarabilitv of Provisions. If any provision of this Ordinance or the application thereof is held to be invalid for any reason, the remainder of the chapter and the application of the provisions shall not be affected thereby. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in a local paper of general circulation within the City of Carlsbad within fifteen (15) days of its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 17th day of JANUARY 1995, and thereafter. PASSED AND ADOPTED at a regular meeting of the Carlsbad City Council of the City of Carlsbad on the day of $19 , by the following vote, to wit: AYES: NOES: ABSENT: APPROVED AS TO FORM AND LEGALITY RONALD R. BALL, City Attorney CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk 6