HomeMy WebLinkAbout2011-09-13; Housing & Redevelopment Commission; 432; ENFORCEABLE OBLIGATION PAYMENT SCHEDULEHOUSING AND REDEVELOPMENT COMMISSION
AGENDA BILL 15
AB# 432
MTG. 9/13/11
DEPT. HNS
Adoption of the Enforceable Obligation
Payment Schedule for the Carlsbad
Redevelopment Agency
DEPT. HEAD y
CITY ATTY. nj*
CITYMGR. /T[I;L^-
RECOMMENDED ACTION:
APPROVE Housing and Redevelopment Commission Resolution No.511 ADOPTING
the Enforceable Obligation Payment Schedule for the Carlsbad Redevelopment Agency and
authorizing submission of the noted Schedule to the appropriate County and State Agencies
with a retroactive approval date of August 29, 2011.
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. The Court agreed to an
expedited process and to provide a decision by January 15, 2011, which is the date that
remittance payments are required for redevelopment agencies "opting in" to the voluntary
redevelopment program. The Court also issued an order granting a stay of the provisions of AB
x1 26 and AB xl 27, except for most of the provisions of Part 1.8 of Division 24 of the Health
and Safety Code that were enacted in AB 26 x1 which places various financial restrictions and
obligations on redevelopment agencies. An example of an obligation is that by August 29,
redevelopment agencies need to adopt an Enforceable Obligation Payment Schedule.
Subsequently, on August 17, 2011, the court issued a revised order that did not stay any of the
provisions of Part 1.8 and further removed the stay on paragraph (2) of subdivision (b)
Section 34194 of the Health and Safety Code as enacted in AB x1 27, which authorizes the
calculation of the required remittance payment for the voluntary redevelopment program.
As noted above, one of the obligations that remains effective under ABX1 26 required
redevelopment agencies 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 29th in order to meet the required timeline and submitted it to the
required County and State Agencies. The EOPS must, however, ultimately be adopted by the
Agency Board, which is the Carlsbad Housing and Redevelopment Commission. The EOPS is
being presented to the Commission at this time for review and adoption.
DEPARTMENT CONTACT: Debbie Fountain 760-434-2935 debbie.fountain@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COMMISSION APPROVED
ACTION:
DENIED
CONTINUED D
WITHDRAWN D
AMENDED D
CONTINUED TO DATE D
SPECIFIC _
CONTINUED TO DATE D
UNKNOWN
RETURNED TO STAFF D
OTHER-SEE MINUTES O
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 from August through December, 2011.
Therefore, a new report has been developed in a form that staff believes is acceptable to the
State. According to the redevelopment law that remains in effect per the Court Order, no
payments can be made by the Redevelopment 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 of the Agency are set
forth and detailed within the EOPS and submitted at this time for Commission approval.
The Agency's Executive Director approved and adopted the attached EOPS and submitted to
the appropriate agencies on August 29, 2011. The Director is submitting the adopted EOPS to
the Commission at this time for confirmation that it is acceptable to the Commission. If
acceptable, the Director requests that the Commission approve the attached resolution to
formally adopt the EOPS on behalf of the Carlsbad Redevelopment Agency, and authorize
submission of the approving resolution to the appropriate regulatory agencies.
FISCAL IMPACT:
The debt of the 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 will continue operations well into the future, there
have been 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. The accomplishment of redevelopment
goals benefit the State, the region, as well as the City from a fiscal impact standpoint through
increased revenues, job creation, and business expansion.
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:
5111. Housing and Redevelopment Commission Resolution No. adopting the Enforceable
Obligation Payment Schedule for the Carlsbad Redevelopment Agency.
2. Enforceable Obligation Payment Schedule for the Carlsbad Redevelopment Agency.
1 RESOLUTION NO. 511
2 A RESOLUTION OF THE HOUSING AND
REDEVELOPMENT COMMISSION OF THE CITY OF
3 CARLSBAD, CALIFORNIA, APPROVING THE
4 ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
FOR THE CARLSBAD REDEVELOPMENT AGENCY.
5
6 WHEREAS, the City Council of the City of Carlsbad activated the Housing and
7 Redevelopment Commission in October 16, 1979 and declared itself to constitute the
8 Commission for the purposes of implementing redevelopment activities within the City of
9 Carlsbad; and
10
WHEREAS, the City of Carlsbad and the Housing and Redevelopment
11
Commission previously entered into a cooperative agreement to set forth the
12
relationships between the City and the Commission which was adopted on February 8,
1980 for the purposes of implementing redevelopment activities within the City of
15 Carlsbad; and
16 WHEREAS, the State of California requires an Enforceable Obligation Payment
17 Schedule per Section 34167 and 34169 of the Health and Safety Code, which regulates
18 reporting requirements of California Redevelopment Agencies, to establish the
1 9 outstanding debt and obligations of the redevelopment Agencies and to set forth a
20 repayment schedule through December, 2011 to continue redevelopment operations
21
and implementation activities for both the Village and South Carlsbad Coastal
22
Redevelopment Project areas during and following expiration of the effectiveness dates
for both areas, and as set forth in applicable contracts and agreements; and
25
26
27
28
1 WHEREAS, pursuant to previously approved Cooperative and Reimbursement or
2 Repayment Agreements, the Housing and Redevelopment Commission is continuing to
3 perform a public function of the City of Carlsad and may have access to staff and other
4 administrative services and facilities of the City, and may accept financial assistance
5
from the City to complete redevelopment activities and/or projects for both the Village
6
and South Carlsbad Coastal Redevelopment Areas; and
7
WHEREAS, the Executive Director of the Carlsbad Redevelopment Agency8
9 administratively adopted and submitted the Enforceable Obligation Payment Schedule
10 on behalf of the Agency on August 29, 2011 as an interim measure to meet the required
11 deadline for submission and to create a list from which payments can be made by the
12 Agency after August 29, 2011.
13 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
14 Commission of the City of Carlsbad, California, as follows:
15
1. That the above recitations are true and correct.
16
2. The Housing and Redevelopment Commission does hereby approve the
10 Enforceable Obligation Payment Schedule set forth as Exhibit 2 to the relatedlo
19 staff report dated September 13, 2011, with the subject Commission approval
20 of said Schedule retroactive to August 29, 2011.
21 3. The Executive Director of the Carlsbad Redevelopment Agency is authorized
22 to submit the Enforceable Obligation Payment Schedule to the State of
23 California as approved and adopted by the Housing and Redevelopment
24
Commission.
25
26
27 "
28
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing and
Redevelopment Commission of the City of Carlsbad on the 13th day of September 2011,
by the following vote to wit:
AYES: Commission Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None
ABSENT: None
ATTEST:
UL~ (jJk<^//yjv^^. r-y x—--^
LteA HILDABRAND, Secretary
(SEAL)
- z : • M
= l\ 1970 /!
Name of Redevelopment Agency:
Project Area(s)
Carlsbad Redevelopment Agency
Village and South Carlsbad Coastal Redevelopment Areas
Page 1 of 1 Pages
ENFORCEABLE OBLIGATION PAYMENT SCHEDULE
Per AB 26 - Section 34167 and 34169 (*)
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Project Name / Debt Obligation
1993 Tax Allocation Refundinq Bonds
City of Carlsbad Advances/Loans 1976 to 2003 (Village)
City of Carlsbad Advances/Loans 2003 to 2009 (Village)
City of Carlsbad Advances/Loans 2000 to 2010 (SCCRA)
City of Carlsbad Loans 201 0 to 2020 (SCCRA)
Public Parking Lot Leases (Village)
Agency General Liability Insurance Costs
Audit Fees
San Diego County Administration Fees (Village)
San Diego County Administration Fees (SCCRA)
Administrative Costs, including employee costs (Village)
Administrative Costs, including employee costs (SCCRA)
Storefront Improvement Grant Program (Village)
New Village Arts - Building Renovation
Oak Yard Repurpose - Strategy and Build
Village Partnership - Organization development
SCCRA Power Plant - Legal Defense against plant
SCCRA Power Plant - Communications
Carlsbad Boulevard Realignment/Property Exchange
Carlsbad Boulevard Realignment/Property Exchange
Low/Mod Set-Aside Fund Administration (Village)
Low/Mod Set-Aside Fund Administration (SCCRA)
Tyler Court Senior Affordable Apartments
Tavarua Senior Affordable Apartment Complex
Education Augmentation Revenue Fund payments
Payee
Bank of New York - Mellon
City of Carlsbad
City of Carlsbad
City of Carlsbad
City of Carlsbad
No.County Transit District
City of Carlsbad
Mayer Hoffman McCann
County of San Diego
County of San Diego
City of Carlsbad & various utilities & vendors
City of Carlsbad & various utilities & vendors
Various business & property owners
City of Carlsbad/General Contractor
City of Carlsbad/General Contractor
Selection of Contrator Pending
Outside Legal Counsel & Expert Consultants
Burge Communications
Fidelity National Title
Various Consultants
City of Carlsbad
City of Carlsbad
Interfaith Housing Corporation
Meta Housing
City of Carlsbad/County of San Diego/
State of California
Description
Bonds issued to fund non-housing redevelopment projects
Loans for administration & various public projects/programs
Loan commitment for pending redevelopment projects; approved 7/7/09
Loans for administration & various public projects/programs
Loan commitment for pending redevelopment projects; approved 2/8/1 1
Property leases to provide public parking in Village (to 2019}
Liability Insurance provided through General Fund
Fees for annual required audit of Redevelopment Agency
Administration Fees for collection and distribution of tax increment
Administration Fees for collection and distribution of tax increment
Employee salaries & other costs for Agency (non-housing) admin
Employee salaries & other costs for Agency (non-housing) admin
Grants for businesses/property owners to renovate storefronts
Update & Renovate Agency owned property to house Live Theater
Develop and implement strategy to convert City Yard to ACE Ctr
Contractor organization to coordinate business/property revitalization
Continued participation in CEC proceedings to oppose new project
Consultant assistance for communications - CEC proceedings
Property Title Reports
Preliminary Studies, Design and related activities
Employee salaries & other costs for Agency housing admin
Employee salaries & other costs for Agency housing admin
Management Contract; day-to-day operations of affordable apartments
Construction loan for affordable housing development
Remittance Payments to State/County, subject to Court action
and determination that Carlsbad Redevelopment Agency may
continue operations under voluntary program. No payment to be
made if legislation is held to be invalid by the Supreme Court.
Totals - This Page
Totals - Page 2
Totals - Page 3
Totals - Page 4
Totals - Other Obligations
Grand total - All Pages
Total Outstanding
Debt or Obligation
13,440.338.00
17,586,802.00
14,400.000.00
7,800.000.00
24,000,000.00
537,560.00
90,200.00
90,000.00
424,135.00
885,000.00
3,820.364.00
17,251,900.00
145,000.00
1,500,000.00
1,000,000.00
1.000.000.00
250,000.00
10,000.00
25,000.00
800,000.00
2,767,900.00
4,739,180.00
6,000.000.00
3,750,000.00
1 ,750,000.00
$ 110,623.041.00
$
$
$
$
$ 110,623.041.00
Total Due During
Fiscal Year
1,038,765.00
1,284,846.00
0.00
0.00
0.00
46.780.00
1 ,220.00
2,800.00
20,900.00
0.00
316,395.00
228,439.00
145,000.00
500,000.00
100,000.00
200,000.00
250,000.00
5,462.00
22,545.00
800,000.00
75,558.00
49,016.00
461,047.00
3,750,000.00
1,400,000.00
$ 9,660,008.00
S
$
$
$
Paymen
Aug**
0.00
0.00
0.00
0.00
0.00
3,898.00
102.00
0.00
0.00
0.00
26,366.00
19,036.00
0.00
0.00
0.00
0.00
20,000.00
0.00
4,510.00
0.00
6,295.00
4,085.00
38,420.00
0.00
0.00
$ 122,712.00
$
$
$
$
$ 9,660,008.00 || $ 122,712.00
Sept
796,470.00
0.00
0.00
0.00
0.00
3,898.00
102.00
0.00
0.00
0.00
26,366.00
19,036.00
20,000.00
0.00
0.00
0.00
20,000.00
455.00
4,510.00
0.00
6,295.00
4,085.00
38,420.00
0.00
0.00
$ 143,167.00
$
$
$
S
$ 143,167.00
Oct
0.00
0.00
0.00
0.00
0.00
3,898.00
102.00
0.00
0.00
0.00
26,366.00
19,036.00
20,000.00
0.00
0.00
0.00
20,000.00
455.00
4,510.00
88,890.00
6,295.00
4,085.00
38,420.00
0.00
0.00
$ 232,057.00
S
$
$
$
s by month
Nov
0.00
0.00
0.00
0.00
0.00
3,898.00
102.00
0.00
0.00
0.00
26,366.00
19,036.00
20,000.00
0.00
0.00
0.00
20,000.00
455.00
4,510.00
88,890.00
6,295.00
4,085.00
38,420.00
0.00
0.00
$ 232,057.00
$
$
$
$
Dec
0.00
0.00
0.00
0.00
0.00
3,898.00
102.00
2,800.00
20,900.00
0.00
26,366.00
19,036.00
20,000.00
500,000.00
50,000.00
100,000.00
20,000.00
455.00
4,510.00
88,890.00
6,295.00
4,085.00
38,420.00
1 ,500,000.00
0.00
$ 2,405,757.00
$
$
$
$
$ 232,057.00 II $ 232,057.00 II $ 2,405,757.00
Total
$796,470.00
$
$
S
$
$ 19,490.00
$ 510.00
$ 2,800.00
$ 20,900.00
$
$ 131,830.00
$ 95,180.00
$ 80,000.00
$ 500,000.00
$ 50,000.00
$ 100,000.00
$ 100,000.00
$ 1 ,820.00
$ 22,550.00
$ 266,670.00
$ 31,475.00
$ 20,425.00
$ 192,100.00
$1,500,000.00
$
$
$
$
$
$
$
$3,135,750.00
$
$
$
$
$3,135,750.00
* This Enforceable Obligation Payment Schedule (EOPS) has been adopted by redevelopment agency's Executive Director on August 29, 2011.
Source of debt obligations are the 2011 adopted repayment schedules for the Village and SCCRA, approved by the Council and Commission 7/7/09 and 2/8/11 respectively.
** It is also important to note that the City Council and Commssion adopted a voluntary redevelopment program ordinance on August 23, 2011 to continue redevelopment activities, if legislation is upheld by the Supreme Court.
-V