HomeMy WebLinkAbout2012-01-24; City Council; 434; ADOPTION ENFORCEABLE OBLIGATION PAYMENT SCHEDULEHOUSING AND REDEVELOPMENT COMMISSION
AB# 434 Adoption of ttie Enforceable Obligation
Payment Sctiedule for ttie Carlsbad
Redevelopment Agency
DEPT. HEAP
MTG. 1/24/12
Adoption of ttie Enforceable Obligation
Payment Sctiedule for ttie Carlsbad
Redevelopment Agency
CITY ATTY.
DEPT. HNS
Adoption of ttie Enforceable Obligation
Payment Sctiedule for ttie Carlsbad
Redevelopment Agency CITY MGR.
RECOMMENDED ACTION:
APPROVE retroactive to January 1, 2012, Housing and Redevelopment Commission
Resolution No. 520 ADOPTING the Enforceable Obligation Payment Schedule for the
Carlsbad Redevelopment Agency and authorizing submission ofthe noted Schedule to the
appropriate County and State Agencies.
ITEM EXPLANATION:
On June 29, 2011, the Governor signed ABX1 26 to dissolve all redevelopment agencies within
the State of California. He also signed ABX1 27 which provided for a voluntary redevelopment
program which requires a payment in order to continue redevelopment activities of existing
agencies. The legislation was legally challenged by the California Redevelopment Association
and the League of California Cities. On August 11, 2011, the California Supreme Court agreed
to hear the case' California Redevelopment Assoc. v. Matosantos. and agreed to an expedited
process. On December 29, 2011, the Supreme Court delivered its decision, and found ABX1 26
to be constitutional and ABX1 27 to be unconstitutional. This means that ail redevelopment
agencies will be dissolved as of February 1, 2012, unless legal action or legislation is
successful to delay the effectiveness date ofthe legislation. There is no opportunity for
redevelopment agencies to voluntarily remain active with payment to the State, as originally
approved under ABX1 27.
One of the obligations of the dissolution act was to adopt an Enforceable Obligation Payment
Schedule (EOPS) by August 29, 2011. For the Carlsbad Redevelopment Agency, the Executive
Director adopted the required EOPS by August 29"" in order to meet the required timeline and
submitted it to the required County and State Agencies. The EOPS was then adopted by the
Agency Board, which is the Carlsbad Housing and Redevelopment Commission in early
September, 2011. The State is requiring that a new EOPS be adopted every six months to set
forth the payment schedule during that period. It is expected that the County will provide
adequate tax increment revenues to cover the payments noted on the six month payment
schedule. This is the last EOPS to be submitted by the Carlsbad Redevelopment Agency. The
remaining schedules will be submitted by the Successor Agency, which will be the City of
Carlsbad as of February 1, 2012, unless there is a delay in the effectiveness ofthe legislation
implemented before the end of January, 2012.
DEPARTMENT CONTACT: Debbie Fountain 760-434-2935 debbie.fountain@carlsbadca.qov
FOR CITY CLERKS USE ONLY.
COMMISSION
ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page 2
The EOPS includes all of the debts and obligations that were set forth in the Cooperation and
Repayment Agreements and related repayment schedules approved by the Housing and
Redevelopment Commission, serving as the Agency Board, for the Village Area (7/7/09) and
South Carlsbad Coastal Redevelopment Area (2/8/11). The State, however, is requiring
additional detail that was not noted in those original schedules, such as payee information, a
brief payment description and payments by month for a six month period. The attached report
has been developed in a form that staff believes is acceptable to the State. According to the
new law, no payments can be made by the Redevelopment Agency and subsequently the
Successor Agency unless the debt or obligation is noted on the required EOPS. Therefore, to
ensure that the Agency will not default on any of its contracts, debt and/or other obligations, all
current and future debts and obligations ofthe Agency are set forth and detailed within the
EOPS and related 6 month schedule, and submitted at this time for Commission approval.
FISCAL IMPACT:
The debt ofthe Carlsbad Redevelopment Agency, both current and future per approved
contracts, is substantial and detailed in the attached EOPS report (Exhibit 2). With the
assumption that the Redevelopment Agency would continue operations well into the future,
there were numerous projects and programs initiated over the past several years intended to
eliminate blight or blighting conditions within both the Village and South Carlsbad Coastal
Redevelopment Areas. There are also numerous projects and programs that the Agency has
contracted with the City to implement or complete on behalf of the Agency in future years which
are critical to the successful accomplishment of the goals and objectives set forth in the
respective redevelopment plans. The contractual obligations to implement future projects and
programs within the noted redevelopment areas are significant and important from both an
economic development and physical enhancement (blight elimination) perspective, and for the
provision of affordable housing within the community.
ENVIRONMENTAL IMPACT:
For the purposes of environmental review, the proposed financial report represents an
organizational or administrative activity of governments that will not result in direct or indirect
physical changes in the environment. Therefore, the action is not a "project" under the
California Environmental Quality Act (CEQA 15378(b)(5)). All future projects listed within the
financial report will require separate environmental review and approval, and will not be
approved for implementation until environmental review has been completed and mitigation
measures have been adopted, as appropriate.
EXHIBITS:
1. Housing and Redevelopment Commission Resolution No. 520 adopting the Enforceable
Obligation Payment Schedule for the Carlsbad Redevelopment Agency.
2. Enforceable Obligation Payment Schedule for the Carlsbad Redevelopment Agency.
1 RESOLUTION NO. 520
2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA, APPROVING THE ENFORCEABLE OBLIGATION
3 PAYMENT SCHEDULE FOR THE CARLSBAD REDEVELOPMENT AGENCY FOR
JANUARY 1. 2012 TO JUNE 30. 2012.
4
5 WHEREAS, the City Council of the City of Carlsbad activated the Housing and Redevelopment
6 Commission in October 16, 1979 and declared itself to constitute the Commission for the purposes of
7 implementing redevelopment activities within the City of Carlsbad; and
8 WHEREAS, the City of Carlsbad and the Housing and Redevelopment Commission previously
9 entered into a cooperative agreement to set forth the relationships between the City and the Commission
10 which was adopted on February 8, 1980 for the purposes of implementing redevelopment activities within
11 the City of Carlsbad; and
12 WHEREAS, the State of Califomia requires an Enforceable Obligation Payment Schedule per
13 every six months of a fiscal year, per Health and Safety Code section 34167 and 34169 ofthe, which
14 regulate reporting requirements of Califomia Redevelopment Agencies (Agencies), to establish the
15 outstanding debt and obligations of the Agencies and to set forth a repayment schedule through June 30,
16 2012 as set forth in applicable contracts and agreements; and
17 WHEREAS, pursuant to previously approved Cooperative and Reimbursement or Repayment
18 Agreements, the Housing and Redevelopment Commission has been performing a public function ofthe
19 City of Carlsbad and has had access to staff and other administrative services and facilities ofthe City, and
20 has accepted financial assistance from the City to complete redevelopment activities and/or projects for
21 both the Village and South Carlsbad Coastal Redevelopment Areas; and
22 WHEREAS, the Executive Director of the Carlsbad Redevelopment Agency has submitted the
23 Enforceable Obligation Payment Schedule on behalf of the Agency for the period from January 1, 2012 to
24 June 30, 2012 for approval by the Housing and Redevelopment Commission.
25 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission as
26 follows:
27 1, That the above recitations are true and correct.
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2. The Housing and Redevelopment Commission does hereby approve , retroactive to January 1,
2012, the Enforceable Obligation Payment Schedule for the period from January 1, 2012 to
June 30, 2012..
3. The Executive Director of the Carlsbad Redevelopment Agency is authorized to submit the
Enforceable Obligation Payment Schedule to the State of California as approved and adopted
by the Housing and Redevelopment Commission, and to other appropriate State and County
officials.
1 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing and
2 Redevelopment Commission of the City of Carlsbad on the 24th day of January, 2012,
by the following vote, to wit: 3
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AYES: Commission Members Hall, Kulchin, Blackburn, Douglas and Packard.
NOES: None.
ABSENT: None.
11 MATT FfALL, Chairman
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ATTEST:
LISA HILDABRAND, Secretary
16 /^'^''^'^s;''.^
(SEAL)
- S • ; r
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Name of Redevelopment Agency:
Project Area(s)
Carlsbad Redevelopment Agency
Village and South Carlsbad Coastal Redevelopment Areas
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
Per AB 26 - Section 34167 and 34169 {*)
Page 1 of 1 Pages
"Exhibit 2"
Approved:
1/24/12
Notes
•^ource of debt obligations are the 2011 confinned and adopted repayment schedules for the Village and SCCRA, approved by the Council and Commission 7/7/09 and 2/8/11 respectively
"The payment schedule indicates required payments which exceed the amount of tax increment available to the City; these debts, therefore, will remain on the payment schedule until subsequently repaid or any existing fund balances will be used to make payments. N