RES-ORA-0535 Remittance Agreement ApprovalRESOLUTION NO.ORA -0535
A RESOLUTION OF ORANGE REDEVELOPMENT
AGENCY AUTHORIZING AND APPROVING THE
EXECUTION AND DELIVERY OF A REMITTANCE
AGREEMENT WITH THE CITY OF ORANGE IN
ACCORDANCE WITH ASSEMBLY BILL X1 27
SUBJECT TO CERTAIN CONDITIONS AND
RESERVATIONS.
WHEREAS, the Orange Redevelopment Agency (the "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 of the City of Orange (the "City
Council "); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry
out the Redevelopment Plan for the Orange Merged and Amended Redevelopment Project
Area ( "Redevelopment Project ") which was adopted by and through a series of ordinances of
the City Council; and
WHEREAS, the Redevelopment Plan sets forth a plan for redevelopment of the
Redevelopment Project consistent with CRL and the policies and standards of the General
Plan of the City; and
WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the CRL were added by
Assembly Bill X1 26 and Assembly Bill X1 27 (together, the "2011 Redevelopment
Legislation "), which laws were drafted to become effective when signed by the Governor on
June 28, 2011; and
WHEREAS, Part 1.85 provides for the statewide dissolution of all redevelopment
agencies as of October 1, 2011, and further provides that upon such dissolution that a
successor agency will administer the enforceable obligations of all redevelopment agencies
and otherwise wind up the agencys' affairs, all subject to the review and approval of
oversight committees; and
WHEREAS, notwithstanding the provisions of Part 1.85, Part 1.9 provides that a
redevelopment agency may continue in operation if a city that includes a redevelopment
agency adopts an ordinance agreeing to comply with and participate in the Alternative
Voluntary Redevelopment Program established in Part 1.9 (the "Program "); 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 elected to comply with
and participate in the Program by the adoption of Ordinance No. 15 -11 on August 23, 2011
the "Ordinance "), in order to allow the Agency to continue in operation and perform its
functions; and
WHEREAS, Part 1.9 requires the City to make specified annual remittances to the
County auditor - controller in order to continue the existence of the Agency; and
WHEREAS, ABxI 27 authorizes the City to enter into an agreement with the
Agency, whereby the Agency transfers a portion of its tax increment to the City in an amount
equal to the City's annual remittances to the County Controller to comply with the provisions
of Part 1.9; and
WHEREAS, the purpose of the Remittance Agreement is to provide for the transfer
of funds by the Agency to the City in an amount sufficient for the City to make the
remittance payments required by Part 1.9, utilizing net tax increment in this current fiscal
year and forthcoming years; and
WHEREAS, pursuant to the provisions of Part 1.9, the City shall pay one -half of the
total remittance amounts for a fiscal year on or before January 15 of that year and shall pay
the remaining one -half of the remittance amount on or before May 15 of that year; and
WHEREAS, for fiscal year 2012 -13 and each fiscal year thereafter, the City's
remittance shall be in an amount calculated by the City in accordance with the requirements
of Part 1.9, subject to adjustment based on audit and verification by the Director of Finance,
the State Controller and the applicable county auditor - controller. Part 1.9 provides that on
or before November 1St of each year, commencing November 1, 2012, the City shall notify
the Department of Finance, the State Controller, and the applicable county auditor - controller
of the remittance amount calculated by the City; and
WHEREAS, the validity, passage, and applicability of the 2011 Redevelopment
Legislation 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
WHEREAS, the California Supreme Court (the "Court") issued an order on August
11, 2011 in the CRA Action directing the parties to show cause why the relief sought in the
CRA Action should not be granted and established a schedule designed to facilitate a
decision before January 15, 2012 (the "Original Order "). Pending a decision in the CRA
Action, the Original Order stayed the effectiveness of certain portions of the 2011
Redevelopment Legislation and appears to preclude the Agency from taking specified actions
as defined by those sections not stayed in Part 1.8, even though the City Council has adopted
the Ordinance No. 15 -11; and
WHEREAS, on August 17, 2011, the Court modified the Original Order relating to
whether redevelopment agencies are required to adopt a schedule of those "enforceable
obligations" that require payments to be made through the end of calendar year 2011
Enforceable Obligation Payment Schedule "). Notwithstanding its modification of the
Original Order, it remains unclear whether an agency in a city that has opted in to the
Program must still approve Remittance Agreement; and
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WHEREAS, in an abundance of caution, the Remittance Agreement is being entered
into on the condition that the Agency is not pledging or obligating in any way, any of its
revenue, and will not have any effect unless and until the Supreme Court lifts or modifies the
Stay Order in a manner such that the prohibitions in Part 1.8 do not apply to the Agency and
the Agency is permitted to perform under the Remittance Agreement pursuant to Health and
Safety Code Section 34194.2 or other provisions of law.
NOW, THEREFORE, the Board of Directors of the Orange Redevelopment
Agency resolves, finds and determines, on the basis of the facts set forth in the agenda report
presented to it and any testimony received at the meeting at which this matter was
considered, as follows:
The foregoing recitals are true and correct.
2. The Remittance Agreement, in the form presented attached hereto as Exhibit
A " is hereby approved.
3. The Chairman is hereby authorized and directed to execute and the Agency
Clerk to attest to, the Remittance Agreement which, when fully executed, shall be placed on
file in the office of the Agency Clerk.
4. The Executive Director of the Agency is authorized and directed to sign all
documents necessary and appropriate to carry out and implement the Remittance Agreement
and to administer the Agency's obligations, responsibilities and duties to be performed under
the Remittance Agreement.
5. The adoption of this Resolution is not intended and shall not constitute a
waiver by the Agency of any right the Agency may have to challenge the legality of all or
any portion of AB X1 26 or AB X1 27 through administrative or judicial proceedings.
ADOPTED this 27 day of September, 2011.
ATTEST:
Mary *rp , Agency Cler
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I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the 27 day of
September, 2011, by the following vote:
AYES: DIRECTORS: Whitaker, Smith, Cavecche
NOES: DIRECTORS: Dumitru, Bilodeau
ABSENT: DIRECTORS: None
ABSTAIN: DIRECTORS: None
Mary E. gency Clerk
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