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
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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
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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