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Home My WebLink About9/15/1999 - STAFF REPORTS (7) DATE: SEPTEMBER 15, 1999 TO: CITY COUNCIL CONTOM TO VMS" FROM: ACTING DIRECTOR OF MANAGEMENT OF BUDGET 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 area 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. This action was considered at the July 21, 1999 Council meeting, and was continued until this date because of an objection from the Riverside County Flood Control District. The District is concerned that the 20% setaside for low- and moderate-income housing will reduce their revenues in the proposed years of the extensions of the eight project areas covered. While that is a possibility, California Redevelopment Law does not give Flood Control(nor any other taxing agency)a right to challenge a plan amendment based on lost future revenue. In addition, AB 1342 allows the time extensions without even amending the Redevelopment Plans. While the pass-through agreement between the Agency and the District does require mutual consent for any amendment, it is superseded by State law (including AB 1342) and therefore does not affect the Council's ability to extend the life of the eight areas. The original intention of AB 1342, as passed by the legislature, 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. Even after the merger of the redevelopment project areas, Riverside County will continue to administer the projects separately. That is,each subarea of the merged project will beep its existing base year value and increment will continue to be calculated separately and remitted to the Agency just as it always has. 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 erty o)�mer. No publi earing was required for the time extensions. JO RA OVD THOMAS M. KANARR A %ty em & get Director of Finance &Treasurer 0 Approved by Attachments 1. Ordinance No. 3-a-� AL 21 '99 84:03F" FLOOD OOMHOL DAVM F.ZAPPE 1995 m1Att�r s1REEr RIYBRBIDBf CA 92501 909955.1200 909.788.9965 FAX RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT ' July 21, 1999 Mr.John Raymond Economio Programs Manager City of Palm springs 3200 Tahquitz Canyon Way Palm Springs,CA.92262 Dear Mr.Raymond: Re: Notice of Public Hearing on the. Proposed Redevelopmrent Plan Amftltnents for July 21, 1999 Our Diodat and the Palm Springs Redeveloputeat Agency currently have Cooperative Agreements on eight of the Agency's to redevelopment plans. Each agreement is separate from *a others and'bas slightly different requirements that necessitate the independent tricking and reporting of data, as well as a different agreement date. Our concern with this Amendment and merger is that this data will not remain disdngt i"le,which would make it virtually impossible to monitor and enforce the cooperative agreemants between our two agencies. Another coareern we have is the loss of tax revenue that will occur when the redevelopnia t plan time limits are extended as pat of the merger. This loss would be the result of the M set aside for low and moderate income bowing that comes offtho top of the k=1000t bef e.the District receives its appivini a pawftomglu This loss may not soap subst'an ial When looking td a single year,however our calculations estimate that the adersion may be as much as ten years for soma of the plans that were adopted In tine mid 1980's. Due to the adverse Impacts of this proposal,the Diatrlet opposes the proposed amendment and •merger. Per the terms of the subject agreements currently in tbroe,any charges or modifications requite writtan agreement of the•parties. The District is eager to'discuss these issues whh the hope that they can be resolved quickly. The District is normally provided a copy of any proposed amendment, however we did not receive one from your agency for the.proposed action. Please provide us a copy so we can Teview In more ddtail the impacts of this amendment. Our only notice for this action is your letter of June 21, 1999. If you have any questions please contact•me at 909.955.1250 or Ivan Cband, District Finance Director,at 909,955.1249. cry truly yam. DAVID P. General Engineer c: City Clerk,City of Palm Springs JDN::wb PM8105 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 BILL 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 Highland-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 Mended 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. 3owb 3,b.. 41w 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 1 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 thereog or a display advertisement, duly prepared according to law, to be published in accordance with law. ADOPTED this day of 1999. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk Mayor REVIEWED AND APPROVED AS TO FORM: