ARA-2011-012 RESOLUTION NO. ARA- 2011 -012
A RESOLUTION OF THE GOVERNING BOARD OF THE
ANAHEIM REDEVELOPMENT AGENCY APPROVING THE
AGREEMENT TO TRANSFER TAX INCREMENT BY AND
BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY
AND THE CITY OF ANAHEIM FOR TRANSFER TO THE
COUNTY OF ORANGE AS REQUIRED BY AB 27 AND
MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH
WHEREAS, the Anaheim Redevelopment ( "Agency ") is a community redevelopment
agency organized and existing under the California Community Redevelopment Law (Health and
Safety Code Section 33000 et seq.; herein referred to as the "CRL "), and has been authorized to
transact business and exercise the powers of a redevelopment agency pursuant to action of the
City Council ( "City Council ") of the City of Anaheim ( "City "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out
the Amended and Restated Redevelopment Plan ( "Redevelopment Plan") for the Anaheim
Merged Project Area ( "Redevelopment Project ") which was adopted by and through a series of
ordinances of the City Council of the City, specifically Ordinance Nos. 5913, 5914, 5915, 5916,
5917, 5918, 5973, and 6034; and
WHEREAS, the California State Legislature, in conjunction with the FY 2011 -2012 State
budget, passed Assembly Bill X1 26 and Assembly Bill X1 27 ( "AB 26" and "AB 27 ",
respectively) on June 15, 2011, which were approved by the Governor on June 28, 2011 and
chaptered by the Secretary of State on June 29, 2011; and
WHEREAS, AB 26 amends specified provisions of the CRL and adds Parts 1.8 and 1.85,
which immediately suspended most of the authority of redevelopment agencies and provides for
their dissolution as of October 1, 2011; and
WHEREAS, AB 27 added Part 1.9 to the CRL, which establishes a Voluntary Alternative
Redevelopment Program ( "VARP "), whereby a redevelopment agency may be exempted from
dissolution under Parts 1.8 and 1.85 and may continue to exist and function under the CRL upon
the enactment of an ordinance by the legislative body that created that redevelopment agency,
thereby committing itself to comply with the provisions of Part 1.9 and to make annual
remittance payments to the County Auditor - Controller ( "County "); and
WHEREAS, upon the finding and determination that the dissolution of the Agency would
be detrimental to the health, safety, and economic well -being of the residents of the City and
cause irreparable harm to the community, the City Council of the City of Anaheim elected to
comply with and participate in the VARP by the adoption of Ordinance No. 6217 on July 19,
2011, as required by Part 1.9, in order to allow the Agency to continue in operation and perform
its functions (the "Ordinance "); and
WHEREAS, by the adoption of the Ordinance and as a condition of the Agency's
continued existence and operation, the City is required to make certain annual remittances to the
County pursuant to Chapter 3 of Part 1.9, beginning with Fiscal Year 2011 -12, to finance
activities within the Redevelopment Project that are related to accomplishing the goals of the
Redevelopment Plan for the Redevelopment Project; and
WHEREAS, Part 1.9 provides that the Califomia Department of Finance ( "DOF ") is to
calculate the amount of the City's remittance for Fiscal Year 2011 -12 pursuant to a formula set
forth therein. On August 1, 2011, the DOF informed the City that it will be required to pay to
the County the sum of $17,450,584.00 for Fiscal Year 2011 -12, one -half of which is due and
payable on January 15, 2012 and the other one -half of which is due and payable on May 15,
2012 ( "First Remittance "); and
WHEREAS, Part 1.9 authorizes the City to enter into an agreement with the Agency
whereby the Agency would, on an annual basis, transfer tax increment to the City in an amount
not to exceed the amount of the City's remittance payment to the County for the purposes of
financing activities within the City's Redevelopment Project that are related to accomplishing the
goals of the Redevelopment Plan for the Redevelopment Project; and
WHEREAS, the City and Agency desire to enter into an agreement pursuant to CRL
Section 34194.2, whereby the Agency agrees to make an initial transfer of a portion of its tax
increment to the City in an amount equal to the First Remittance, and thereafter transfer amounts
of tax increment equal to any subsequent remittance which the City is required to make to the
County pursuant to the City's participation in the VARP ( "Agreement to Transfer Tax
Increment "); and
WHEREAS, the Agency expects it will have sufficient moneys and revenues to fund an
amount equal to the City's payment of the First Remittance and further expects to have sufficient
moneys and revenues to fund the subsequent annual remittances required by Part 1.9; and
WHEREAS, the City's needs are such that it can commit to spend the funds received
from the Agency pursuant to the Agreement to Transfer Tax Increment to finance activities
within the Redevelopment Project that are related to accomplishing the goals of the
Redevelopment Plan for the Redevelopment Project; and
WHEREAS, for Fiscal Year 2011 -12 only, Part 1.9 authorizes the Agency to transfer tax
increment funds that would otherwise be deposited into its Low and Moderate Income Housing
Fund to the City under the Agreement to Transfer Tax Increment if the Agency finds that there
are insufficient other moneys to meet its debt and other obligations, current priority program
needs, or its obligations under CRL Section 34194.2 and the Agreement to Transfer Tax
Increment approved under this Resolution; and
WHEREAS, the Governing Board of the Agency acknowledges that the validity, passage,
and applicability of AB 26 and AB 27 is the subject of judicial challenge(s), including the action
brought by the California Redevelopment Association ( "CRA ") and the League of California
Cities in their own capacity and on behalf of their members: California Redevelopment
Association, et al v. Ana Matosantos, et al (the "CRA Action "); and
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WHEREAS, the Governing Board of the Agency, by the adoption of this resolution, does
not represent, disclaim, or take any position whatsoever on the issue of the validity of ABX1 26
or ABX1 27, but rather seeks to comply with the Constitution and laws of the State of California,
including Part 1.9, in order to preserve the ability of the Agency to continue to operate and
thereby benefit the community and accomplish the goals of the Redevelopment Plan for the
Redevelopment Project; and
WHEREAS, the Agency has duly considered all other related matters and has determined
that the Agency's entering into the Agreement to Transfer Tax Increment is in the best interests
of the City, and the health, safety, and welfare of its residents, and in accord with the public
purposes and provisions of applicable state and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED:
Section 1. The foregoing recitals are incorporated into this resolution by this
reference, and constitute a material part of this resolution.
Section 2. Based upon evidence set forth in the record before it, the Agency hereby
finds and determines that there are insufficient other moneys to meet its debt and other
obligations, current priority program needs, or its obligations under Section 34194.2 and the
Agreement to Transfer Tax Increment approved hereunder without being exempt from making
the full allocation required to be made to the Low and Moderate Income Housing Fund for Fiscal
Year 2011 -12. Accordingly, for Fiscal Year 2011 -12 only, pursuant to CRL Section 34194.3,
the Agency shall be exempt from making the full allocation required to be made to the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2, 33334.3 and 33334.6.
Section 3. That certain Agreement to Transfer Tax Increment to be entered into
pursuant to CRL Section 34194.2, between the Agency and the City in the form presented at this
meeting is hereby approved, and the Executive Director of the Agency is hereby authorized and
directed to execute said agreement and to administer said agreement in accordance with its terms
on behalf of the Agency.
Section 4. This Resolution shall be effective immediately upon adoption.
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THE FOREGOING RESOLUTION is approved and adopted by the governing board of
the Anaheim Redevelopment Agency this 27th day of September , 2011, by the
following roll call vote:
AYES: Chairman Tait, Agency Members Sidhu, Eastman, Galloway and Murray
NOES: None
ABSTAIN: None
ABSENT: None
ANAH DEVELOP ► T AGENCY
7 ,-
CHAIRMAN
ATTEST:
II A
AIAA1.1 ( AW11I:■
SE RETAR OF THE AN • EIM
REDEVELOPMENT AGENCY
86025.2
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