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Home My WebLink About2003-12-02; City Council; 17384; Amending Village Area Redevelopment PlanAB# 17,384 MTG. 12-2-03 DEPT. HlRED b CITY COUNCIL -AGENDA BILL OF CARLSBAD, AMENDING THE CARLSBAD VILLAGE AREA REDEVELOPMENT PLAN TO EXTEND CERTAIN TIME LIMITS CITY ATTY. CITY MGR. RECOMMENDED ACTION: INTRODUCE Ordinance No. NS-683, amending the Carlsbad Village Area Redevelopment Plan to extend certain time limits. ITEM EXPLANATION: In 1981, the Carlsbad City Council adopted the Carlsbad Village Area Redevelopment Plan (Redevelopment Plan). The Redevelopment Plan provides the framework for all of the activities undertaken by the Carlsbad Redevelopment Agency. The Redevelopment Plan is effective for 25-years and will expire on July 7, 2006. Earlier this year, the State of California experienced a significant budget shortfall. As was done in previous years, the Legislature elected to take funds from all redevelopment agencies throughout the State to fill a portion of the shortfall. Senate Bill 1045 (SB 1045) requires that each redevelopment agency make a special one-time payment in an amount determined by the State Director of Finance to the County Auditor for deposit in the Education Revenue Augmentation Fund (EMF) on or before May 2, 2004. The Carlsbad Redevelopment Agency’s share of property tax revenue to be paid to the County Auditor is $143,718. In an effort to reduce the financial impact to the Redevelopment Agency, SB 1045 included language that allows a redevelopment agency to extend the effectiveness date of their respective redevelopment plan by one (1) year. By extending the effectiveness date, a redevelopment agency will have one additional year to collect tax increment for its programs and projects. The legislators believed this action will allow a redevelopment agency to recoup some or all of the funding lost through the State budget process. By adopting the attached ordinance, the City Council will extend the effectiveness date for the Village Area Redevelopment Plan. Under normal circumstances, amending a Redevelopment Plan is quite complex and time consuming. Under SB 1045, the process has been simplified for this one time permitted extension. This action will benefit the Carlsbad Redevelopment Agency. Therefore, staff recommends approval of the attached ordinance. ENVl RO N MENTAL REV1 EW In 1981, the City Council certified Environmental Impact Report 567 for the Village Area Redevelopment Plan. The extension of the effectiveness date will not result in any changes to the Village Area Redevelopment Plan. Therefore, no further environmental review is required. FISCAL IMPACT: For fiscal year 2003-04, it is estimated that the Village Redevelopment Area will receive $2.1 million in tax increment. SB 1045 requires the Agency to pay $143,718 to the Education Revenue Augmentation Fund. The one year extension of the effectiveness date of the redevelopment plan will allow the City’s redevelopment agency one additional year to collect tax increment. This extension will allow the Agency to recover costs that were not received in the current fiscal year. SB 1045 also exempts redevelopment agencies that elect to extend their redevelopment plans from the requirement of revising existing tax sharing agreements with other taxing entities as is currently required by redevelopment law. Therefore, there will be no impact to the City’s General Fund. AB# 17,384 Page 2 EXHIBITS: 1. City Council Ordinance No. NS-683 , APPROVING an Ordinance of the City Council of the City of Carlsbad, amending the Carlsbad Village Area Redevelopment Plan to extend certain time limits. DEPARTMENT CONTACT: Craig Ruiz, (760) 434-281 7, cruiz@ci.carlsbad.ca.us 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY COUNCIL ORDINANCE NO. NS-683 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, AMENDING THE CARLSBAD VILLAGE AREA REDEVELOPMENT PLAN TO EXTEND CERTAIN TIME LIMITS. WHEREAS, the City Council of the City of Carlsbad adopted Ordinance No. 9591 on July 7, 1981, approving and adopting the Carlsbad Village Redevelopment Plan (hereinafter referred to as the "Redevelopment Plan"); and WHEREAS, the Housing and Redevelopment Commission 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 Sections 33000 et seq.) and to implement the Redevelopment Plan; and WHEREAS, Health and Safety Code Section 33333.6 applies to every redevelopment plan adopted on or before December 3 1,1993; and WHEREAS, pursuant to the Redevelopment Plan and subdivision (a) of Health md Safety Code Section 33333.6, the effectiveness of the Carlsbad Village Area Redevelopment Plan shall terminate on July 7,2006; and WHEREAS, pursuant to the Redevelopment Plan and subdivision (b) of Health md Safety Code Section 33333.6, except as provided in subdivisions (f) and (8) of said Section 33333.6, the Agency may not pay indebtedness or receive property taxes pursuant to the Redevelopment Plan pursuant to Health and Safety Code Section 33670 after July 7,2016; and WHEREAS, the California State Legislature has enacted SB 1045, making various amendments to the Community Redevelopment Law, which was chaptered as Chapter 260 and became effective on September 2,2003; and WHEREAS, Health and Safety Code Section 33333.6(e)(2)(C), as amended by SB 1045, provides that when an agency is required to make a payment pursuant to Health and Safety Code Section 33681.9, the legislative body may amend the redevelopment plan to extend the time limits required pursuant to subdivisions (a) and (b) of Health and Safety Code Section 33333.6 by one year by adoption of an ordinance, without the necessity of compliance with Health md Safety Code Section 33450 or any other provision relating to amendments, including but not limited to the requirement to make payments to affected taxing entities required by Health and Safety Code Section 33607.7; and WHEREAS, the Agency is required to make a payment pursuant to Health and Safety Code Section 33681.9; and WHEREAS, the Agency and the City Council of the City of the City of Carlsbad desire to extend by one year the time limit on the effectiveness of the Redevelopment Plan and the time limit for paying indebtedness and receiving property taxes. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as follows: SECTION 1. Amendment of the Redevelopment Plan for the Carlsbad Village Redevelopment Project. In accordance with Health and Safety Code Section 33333.6(e)(2)(C), and notwithstanding any other provision in the Redevelopment Plan, the City Council hereby amends the Redevelopment Plan as stated herein by adoption of this Ordinance, and establishes the following limitations, subject to all of the provisions of this Ordinance: A. In accordance with Health and Safety Code Section 33333.6(e)(2)(C), the effectiveness of the Redevelopment Plan shall terminate July 7, 2007, after which time the Agency shall have no authority to act pursuant to the Redevelopment Plan, except to pay previously incurred indebtedness, to enforce existing covenants, contracts, unless the Agency has not completed its housing obligations pursuant to subdivision (a) of Health and Safety Code Section 33333.8, in which case the Agency shall retain its authority to implement requirements under subdivision (a) of Health and Safety Code Section 33333.8, including its ability to incur and pay indebtedness for this purpose, and shall use this authority to complete these housing obligations as soon as it is reasonably possible. By In accordance with Health and Safety Code Section 33333.6(e)(2)(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 7,2017). Section 2. Application. The limitations established by 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. Separability of Provisions. If any provision of this Ordinance or the application thereof is held to be invalid for any reason, the remainder of this Ordinance and the application of the provisions thereof shall not be affected thereby. EFFECTIVE DATE: This Ordinance shall be effective thirty (30) days after its adoption and the City Clerk, City of Carlsbad, shall certify to the adoption of this Ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen (1 5) days after its adoption. Page 2 of 3 of Ordinance No. NS-683 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 INTRODUCED AND FIRST READ at a regular meeting of said City Council held on the 2nd day of December , 2003, and thereafter, PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the day of ,2003 by the following vote, to wit: AYES: NOES: ABSENT: CLAUDE A. LEWIS, Mayor ATTEST: LORRAINE M. WOOD, City Clerk APPROVED AS TO FORM AND LEGALITY: RONALD R. BALL, City Attorney Page 3 of 3 of Ordinance No. NS-683 (SEAL)