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HomeMy WebLinkAbout12/1/1999 - STAFF REPORTS (2) DATE: DECEMBER 1, 1999 TO: CITY COUNCIL FROM: 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 or incur indebtedness 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 area in Palm Springs were originally 30 years in duration, it allows the Agency to extend the life of most of the project area for an additional number of years. This action was considered at the July 21, 1999 Council meeting and was continued until September 15, and then 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. However, Redevelopment Law does not give Flood Control or any other taxing agency a right to challenge a plan amendment based on lost future revenue. In addition, AB 1342 allows Council to approve the time extensions without undertaldng the full Plan Amendment process typical for amending 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the pass-through agreement between the Agency and the District does require mutual consent for any amendment, it is superseded by State law (including AB 1342) and therefore does not affect the Council's ability to extend the life of the eight areas.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. Staff had proposed the time extensions at the same time as the consolidation of all ten project areas into a single merged area; because of the time needed to negotiate with the Agua Caliente Band of Cahuilla Indians, which objected to the consolidation of the project areas but not the time extensions, this was delayed until now. Nevertheless, AB 1342's ability to allow project areas to be extended by ordinance only expires in December, therefore, this item requires adoption prior to the Council's reconsideration of the project area consolidation. The proposed merger of the redevelopment project areas will return for Council's approval in January, 2000. No public h g is required for the time extensions. 4to;0%fMYa,n4ag0ePm THOMAS M. KANARR t&Budget Director of Finance&Treasurer Approved by G City Manager I.4( r Attachments 1. Ordinance No. 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 Fighland-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. a&q,L 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 herebyordered and directed to certify to the passage of this Ordinance, and to cause the same or summary thereof', 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: