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Home My WebLink About7/21/1999 - STAFF REPORTS (5) 0 DATE: JULY 21, 1999 TO: CITY COUNCIL FROM: MANAGER,ECONOMIC PROGRAMS DIRECTOR OF FINANCE&TREASURER REDEVELOPMENT PROJECT AREA TIME EXTENSIONS AS ALLOWED BY AB 1342 RECOMMENDATION: That the City Council adopt an ordinance extending the period of time the Community Redevelopment Agency is allowed to collect tax increment out to the statutory maximum, as allowed by AB 1342, for eight of the Agency's ten areas BACKGROUND: California Assembly Bill 1342 (Napolitano, 1998) allows redevelopment agencies in California to extend the time period of project areas formed before December 31, 1993 to 40 years, or January 2, 2009, whichever is later Since most of the project areas in Palm Springs were originally 30 years in duration, it allows the Agency to extend the life of most of the project areas for an additional number of years. The original intention of AB 1342 was to allow agencies to extend their project areas lives by ordinance only, without having to amend their redevelopment plans, but for a limited time California redevelopment agencies' ability to do so easily, without Plan Amendments, expires on December 31, 1999. In addition, by a separate but simultaneous ordinance,the Council will consolidate all of the redevelopment project areas, 10 in all, into one area Even after the merger of the redevelopment project areas, Riverside County will continue to administer the projects separately because the underlying project areas are not eliminated. That is, each subarea of the merged project will keep its existing base year value and increment will continue to be calculated separately and remitted to the Agency just as it always has. Each constituent area also has a separate date of Plan Termination, which are modified by this ordinance. Likewise, the respective pass through agreements with other taxing agencies will continue to be calculated as they have always been. Therefore, the merger shall not affect the amount of pass throughs (taxes) collected by any other taxing agency, nor will it have any effect on the amount of property tax paid by any property owner. No public hearing was required for these AB 1342 time extensions, though a public hearing is required for the merge . J04N S. PJA THOMAS M. KANARR Eco o P grams alter Director of Finance&Treasurer PP Y r r= Approved b <i - ity Manage / o"� �-PpI'°Ownt) Attachments 1. Ordinance No. 2 Summary of Project Area Time Limits - -71c-i A Redevelopment Project Areas/Summary of Time Limits Project Area Established 1?inal Date to Original Original Amended Amended Incur Debt Date of Plan Termination Date of Plan Date of TcrminaBon of Revenue Termination. Termination of Revenue Central Business District July 11, 1973 Jan,2004 July,2008 July, 2018 July,2013 Judy,2023 Tahquitz-Andreas Project Judy 19, 1983 Jan,2004 July, 2013 July,2023 July, 2023 July, 2033 Ramon-Bogie Project November 30, Jan, 2004 Nov, 2013 Nov,2023 Nov, 2023 Nov,2033 1983 South Palm Canyon November 30, Jan, 2004 Nov,2013 Nov, 2023 Nov, 2023 Nov, 2033 Project 1983 Oasis Project July 10, 1984 July,2004 July, 2014 July, 2024 July,2024 July, 2034 North Palm Canyon September 19, Sept,2004 Sept, 2014 Sept,2024 Sept, 2024 Sept,2034 Project 1984 Highland-Gateway Project November 20, Nov,2004 Nov, 2014 Nov,2024 Nov,2024 Nov,2034 1984 Bansto-Farrell Project May 7, 1986 May,2006 May,2016 May,2026 May, 2026 May, 2036 Project No. 9 December 29, Dec, 2008 Dec,2028 Dec,2038 Dec, 2028 Dec, 2038 1988 Canyon Project July 19, 1991 July,2011 July,2031 July, 2041 July, 2031 July,2041 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CERTAIN REDEVELOPMENT PROJECT AREA PLANS PURSUANT TO THE PROVISIONS OF ASSEMBLY BELL 1342 AND EXTENDING THE TIME LIMITATIONS IN WHICH SAID PROJECT AREAS MAY INCUR INDEBTEDNESS OR RECEIVE PROPERTY TAXES WHEREAS, effective January 1, 1999, certain legislation (AB 1342)was enacted which authorizes a legislative body to amend a redevelopment plan, which was adopted prior to January 1, 1994, so as to allow the extension of the time period in which a Redevelopment Agency may, pursuant to its redevelopment plan incur indebtedness or receive property taxes; and WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the "Agency") has eight projects that meet the criteria established by AB 1342 and are able to extend the time period during which they may receive property taxes, specifically the Central Business District Project, the Tahquitz-Andreas Project,the Ramon-Bogie Project, the South Palm Canyon Project,the Oasis Project, the North Palm Canyon Project, the Frrghland-Gateway Project, and the Baristo-Farrell Project; and WHEREAS, the City Council now wishes to amend the redevelopment plans for the Central Business District Project, the Tahquitz-Andreas Project, the Ramon-Bogie Project, the South Palm Canyon Project, the Oasis Project, the North Palm Canyon Project, the Highland- Gateway Project, and the Baristo-Farrell Project to extend the time periods consistent with those established under AB 1342. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES ORDAIN AS FOLLOWS. SECTION 1: The City Council hereby amends the duration of the redevelopment plans for the following redevelopment project areas, as follows- The Central Business District Project Area is hereby extended to the date of July 11, 2013; The Tahquitz-Andreas Project Area is hereby extended to the date of July 19, 2023; The South Palm Canyon Project Area is hereby extended to the date of November 30, 2023; The Ramon-Bogie Project Area is hereby extended to the date of November 30, 2023; The Oasis Project Area is hereby extended to the date of July 10, 2024, The North Palm Canyon Project Area is hereby extended to the date of September 19, 2024; The Highland-Gateway Project Area is hereby extended to the date of November 20, 2024; and The Baristo-Farrell Project Area is hereby extended to the date of May 7, 2026. dp 6;k1W SECTION 2• The Agency shall not pay indebtedness or receive property taxes in the form of tax increment beyond an additional ten (10)years from the plan limits set forth in Section I of this Ordinance, as permitted by Section 33333.6(c) of the California Health and Safety Code. SECTION 3• The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or summary thereof, or a display advertisement, duty prepared according to law,to be published in accordance with law. ADOPTED this day of 11999. AYES. NOES ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA, By. City Clerk Mayor REVIEWED AND APPROVED AS TO FORM: