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SR - RES-10892 - DEANNEXATION 2300 SOUTH LEWIS STREET 2237 SOUTH MANCHESTER AVENUE1. SUBJECT A Resolution agreeing to redistribution of property tax revenues due to the reorganization of 395 square feet of property located at 2300 South Lewis Street and 2237 South Manchester Avenue from the City of Orange to the City of Anaheim. 2. SUMMARY In May 2015, the Council took action in support of the Local Agency Formation Commission (LAFCO) Meyer Reorganization RO 15 -01 Application. This Resolution is the next step in the detachment process and provides for the redistribution of property taxes in connection with the reorganization. 3. RECOMMENDATION Approve Resolution No. 10892- A Resolution of the City Council of the City of Orange agreeing to redistribution of property tax revenues due to the reorganization of 395 square feet of property located at 2300 South Lewis Street and 2237 South Manchester Avenue from the City of Orange to the City of Anaheim, pursuant to the Cortese -Knox- Hertzberg local government reorganization act of 2000. 4. FISCAL IMPACT There is minimal fiscal impact as the amount of property tax redistributed to the City of Anaheim is $1.56 per year based on the current use of the property. 5. STRATEGIC PLAN GOAL(S) 2. Be a fiscally healthy community. ITEM 3.a 1 10/13/15 O Printed on Recycled Paper G. GENERAL PLAN IMPLEMENTATION Land Use Element Goal 7.0: Promote coordinated planning among City departments and agencies, property owners, residents, special districts, and other jurisdictions in the region. Policy 7.3: Coordinate planning efforts with adjacent cities, special purpose agencies, utilities, and community service providers. 7. DISCUSSION At their April 8, 2015 meeting, the LAFCO Board formally received the proposed "Meyer Reorganization" application (RO 15 -01). The application that was submitted to LAFCO includes a detachment of one property, totaling approximately 395 square feet, from the City of Orange to the City of Anaheim. On May 12, 2015, the City of Orange City Council approved support of the proposed "Meyer Reorganization to the City of Anaheim" which cleans up an inconsistent city limit that exists just west of North Manchester Avenue near the Best Buy store. The detachment is in connection with a proposed townhome housing project in Anaheim that is planned for a vacant property and a portion of the mobile home park just north of the Manchester Walk project. In 1983 the City of Orange approved Resolution No 5857 which vacated and abandoned this former easement which was referred to as Meyer Street, therefore creating this irregular city boundary which did not create a problem until this proposed development project. As a result, the proposed housing project will require a lot line adjustment and boundary change. The proposed Resolution No. 10892 provides for the Property Tax exchange agreement which is the next step in the detachment process and is required by LAFCO for final approval. State law requires the cities of Orange and Anaheim to negotiate the amount of property tax revenues to be exchanged upon completion of the annexation. Staff from both cities have negotiated and agreed to the transfer of all future annual property tax revenues generated from this 395 square foot parcel of land from the City of Orange to the City of Anaheim upon completion of the annexation process. The amount of taxes to be transferred is a nominal $1.56 a year based on the area of land to be exchanged in its current state. At their September 15, 2015, Council meeting the City of Anaheim approved this property exchange resolution evidencing their agreement to this transfer of property tax. Should the City of Orange approve Resolution No. 10892, the action will allow LAFCO and the County Auditor - Controller to process the jurisdictional change and adjust future property tax revenue distributions. No further City of Orange Council action will be needed to finalize the boundary adjustment through the LAFCO process. Staff recommends approval of the attached resolution as it would facilitate processing of LAFCO Meyers Reorganization RO15 -01 Application to resolve this discrepancy in city boundaries. 8. ATTACHMENTS Attachment A — Site Map Attachment B — Resolution No. 10892 ITEM 10/13/15 O Printed on Recycled Paper RESOLUTION N0. 10892 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE AGREEING TO A REDISTRIBUTION OF PROPERTY TAX REVENUE DUE TO THE REORGANIZATION OF 395 SQUARE FEET OF PROPERTY LOCATED AT 2300 SOUTH LEWIS STREET AND 2237 SOUTH MANCHESTER AVENUE FROM THE CITY OF ORANGE TO THE CITY OF ANAHEIM, PURSUANT TO THE CORTESE - KNOX - HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000. WHEREAS, pursuant to the petition of Mr. Joel H. Farkas, the owner of property located at 2300 South Lewis Street and 2237 South Manchester Avenue in the City of Anaheim (the "Property"), initiated an application to the Local Agency Formation Commission ( "LAFCO ") for detachment of the Parcel from the City of Orange to the City of Anaheim pursuant to the Cortese- Knox - Hertzberg Local Government Reorganization Act of 2000 (commencing with Section 56000 of the California Government Code), which application is designated by LAFCO as the proposed "Meyer Reorganization to the City of Anaheim (RO 15 -01) "; and WHEREAS, the Parcel is legally described on Exhibit A and graphically depicted on Exhibit B , both of which exhibits are attached hereto and incorporated herein by this reference. The Property is generally depicted on the map attached hereto as Exhibit C and incorporated herein by this reference, which Property is designated by the Orange County Assessor as a Portion of Assessor's Parcel No. 137- 451-35; and WHEREAS, by motion made and adopted on May 12, 2015 at a regular meeting of its members, the City Council of the City of Orange supported the proposed Meyer Reorganization to the City of Anaheim (RO 15 -01); and WHEREAS, Section 99(c) of the California Revenue and Taxation Code provides that, prior to the effective date of any jurisdictional change, the affected agencies (i.e., the cities of Orange and Anaheim) are required to negotiate the amount of property tax revenues to be exchanged; and WHEREAS, as required by Section 99 of the California Revenue and Taxation Code, the Auditor - Controller of the County of Orange (the "Auditor- Controller ") has prepared a revenue impact analysis for the proposed Meyer Reorganization to the City of Anaheim (RO 15 -01) and advised the cities of Orange and Anaheim of the amount of property tax revenue and the allocation factors for each affected city that are subject to a negotiated exchange in connection with the proposed jurisdictional change for the Parcel; and WHEREAS, both cities have negotiated and agreed upon the amount of property tax revenues to be exchanged between the cities in connection with the proposed jurisdictional change for the Parcel; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange that the City of Orange does hereby agree to the foregoing redistribution of property taxes for this reorganization, with taxes allocated according to applicable revenue factors for the affected tax rate areas. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Orange this 13" the day of October, 2015. Teresa Smith Mayor of the City of Orange