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HomeMy WebLinkAboutR29-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Elimination of Debt Limits for three (3) Redevelopment Agency of the City of San Bernardino Project Areas (Meadowbrook/Central City, Central City South and Central City East Redevelopment Project Areas) DATE: April12,201O Svnonsis of Previous Commission/CounciVCommittee Action!s): On March 4, 2010 Redevelopment Committee Members Johnson, Brinker and Alternate Redevelopment Committee Member Shorett unanimously voted to recommend that the Mayor and Common Council consider this action for approval. Recommended Motion!s): First Reading of Ordinances !Mavor and Common Council) MEADOWBROOK/CENTRAL CITY ORDINANCE A: Ordinance of the City of San Bernardino eliminating the debt incurrence deadline for the Redevelopment Plan for the Meadowbrook/Central City Redevelopment Project Area. RESOLUTION B: Resolution of the Mayor and Common Council of the City of San Bernardino electing the statutory pass- through pursuant to Health and Safety Code Section 33607.5{a)(2) for the Meadowbrook/Central City Redevelopment Project Area CENTRAL CITY EAST ORDINANCE C: Ordinance of the City of San Bernardino eliminating the debt incurrence deadline for the Redevelopment Plan for the Central City East Redevelopment Project Area. RESOLUTION D: Resolution of the Mayor and Common Council of the City of San Bernardino electing the statutory pass- through pursuant to Health and Safety Code Section 33607.5(a)(2) for the Central City East Redevelopment Project Area. CENTRAL CITY SOUTH ORDINANCE E: Ordinance of the City of San Bernardino eliminating the debt incurrence deadline for the Redevelopment Plan for the Central City South Redevelopment Project Area. RESOLUTION F: Resolution of the Mayor and Common Council of the City of San Bernardino electing the statutory pass- through pursuant to Health and Safety Code Section 33607.5(a)(2) for the Central City South Redevelopment Project Area. Contact Person(s): Mike Trout Meadowbrook/Central City, Central City East and Central City South Phone: (909) 663-1044 Project Area(s): Ward(s): [n and 3" Supporting Data Attached: Ii'] Staff Report Ii'] Resolution(s)/Ordinances 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A Signature: ~ Q fifi Fiscal Review: / Emil A. Marzu1fo, Interi ecutive Director Lo Director .----- Administrative Services C~!z~:~:z:~r Nts/. -# .fT, lft flI / () R3 b . I / P:\AgendasIComm [lev CommissionlCDC 2010104-19-IOElimination ofDcbt limits SR_d~ COMMISSION MEETING AGENDA Meeting Date: 1<,2-9. Agenda Item Number: ij?/IO ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ELIMINATION OF DEBT LIMTS FOR THREE (3) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REDEVELOPMENT PROJECT AREAS (MEADOWBROOK/CENTRAL CITY, CENTRAL CITY SOUTH AND CENTRAL CITY EAST) BACKGROUND: In December 2003, the Agency had twelve (12) Redevelopment Project Areas that had certain limitations in accordance with Redevelopment Law; specifically ABI290 and SB21 I set forth those limitations. These lirnitations include, but are not limited to, tirne limit on length of the project plan (the "Plan") (effectiveness date on the redevelopment plan), time period to collect tax incrernent to repay debt, the power of eminent domain (12 years from plan adoption), limit on the amount of tax increment it can receive over the life of the project area and the time period on the amount of bonded indebtedness that can be outstanding at any one time, and last but not least, the time limit to incur debt. Of the twelve (12) Redevelopment Project Areas, Agency Staff had determined that nine (9) of those Redeveloprnent Project Areas should be amended at that time to eliminate the debt incurrence lirnit. Those nine (9) Redevelopment Project Areas were: State College, Central City North, Central City West, Southeast Industrial Park, Northwest, Tri-City, South Valle, Uptown and Mt. Vernon. The time limit to incur debt is important because tax increment financing is based upon the project area being in debt. Furthermore, the project area must have outstanding debt in order to collect tax increment revenue (both total debt and annual debt payments). The rnanner in which the Agency discloses all of its debt is by filing annually with the County of San Bernardino a Statement of Indebtedness (the "SOl") for each of the Agency's Redevelopment Project Areas. Therefore, on December I, 2003, the Mayor and Common Council adopted an ordinance for each of the nine (9) Redevelopment Project Area, mentioned above, eliminating the debt incurrence deadline for the individual Redevelopment Plans. By doing so, this would allow the Agency to establish loans, advances and indebtedness to be paid with the proceeds of property tax increment revenues attributable to the individual Redevelopment Project Areas at any time prior to the termination of the individual Redeveloprnent Project Area Plans. Those Redeveloprnent Project Areas whose Redeveloprnent Plans were not amended to eliminate the debt incurrence deadline, though their deadline expired on January 9, 2002, are the following: Meadowbrook/Central City, Central City South and Central City East (the "Project Areas"). The subject of this Staff Report is the elimination of the debt incurrence deadline for the Project Areas. CURRENT ISSUE: In order for the Agency to be able to clairn new debt, which would be paid with the proceeds of property tax increment revenue generated by the Project Areas after January 9, 2002, it is necessary for the Agency to extend the time frame in which to incur debt. Accordingly, SB21 I was adopted in January 2001, by the State Legislature in order to allow agencies time in which to extend the time frame in which to incur debt to P:lAgendas\Comm Dev Commission\CDC 2010\04-19-10 Eimination of Debt Limits SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/19/2010 Agenda Item Number: KJ~ '1119'/1/7 Economic Development Agency Staff Report Elimination of Debt Limits for Project Areas Page 2 correspond with the project area duration (effectiveness date of the Plan). The following chart illustrates the Project Areas that would be extended to conform to the limits established under SB2 I I : Summary of Project Area Limitations Proposed SB211 Debt Time Limit Amendment A B C D E F G Project Area Time Limit Limit on Proposed Duration on Receiving Time Limit Limit on Total Amount of SB211 Change- (Effectiveness Tax Increment to Incur Debt Total Dollars of Bonded Debt Time Limit Project Areas Date of Plan) (to Repay Debt) (Existing) Tax Increment (at Any One Time) to Incur Debt Meadowbrook! May 3, 2019 May 3, 2029 January 9, 2002 1.75 x Total Debt $50,000,000 May 3, 2019 Central City Central City South May 3, 2019 May 3, 2029 January 9, 2002 1.75 x Total Debt $25,000,000 May 3, 2019 Central City East May 3, 2019 May 3, 2029 January 9, 2002 1.75 x Total Debt $30,000,000 May 3, 20[9 The proposed SB211 Plan Amendrnent will change the time limit to incur debt for each of the Project Areas as noted in column G. SB211 Plan Amendrnent will not impact those taxing agencies that have pass thru agreements in place to share tax increment revenue with the Agency; but for those agencies (which includes the City of San Bernardino) that do not presently have a pass thru agreement, the Agency, under SB2 I I is mandated to share in the new tax increment revenue. ENVIRONMENTAL IMPACT: No impact per the California Environmental Quality Act (the "CEQA"); does not meet the definition of a Project. FISCAL IMPACT: Account Budgeted Amount: $0.00 Balance as of: Aori112, 2010 Balance after approval of this item: $0.00 Without a Plan Amendment for each of the Project Areas the Agency is unable to claim any new debt on the SOL Therefore, this impacts the Agency's ability to consummate new business deals, redevelop blighted properties and to clairn Agency administrative costs, thereby impacting the amount of tax increment the Agency receives for each of the Project Areas noted above. RECOMMENDATION: That the Mayor and Common Council adopt the attached Ordinances and Resolutions. ~ Emil A. Marzullo, Interim Executive Director P:\Agendu\Comm Dev Commission\CDC 2010\04-19-10 Elimination of Debt Limits SR.doc COMMISSION MEETING AGENDA Meeting Date: 04/19/2010 Agenda Item Number: ADDENDUM TO STAFF REPORT The following resolutions may be brought forward for separate action either at this meeting or at the time of second reading of the associated ordinances: Resolution B: Resolution of the Mayor and Common Council of the City of San Bernardino electing the statutory pass-through pursuant to Health and Safety Code Section 33607.5(a)(2) for the Meadowbrook/Central City Redevelopment Project Area Resolution D: Resolution of the Mayor and Common Council of the City of San Bernardino electing the statutory pass-through pursuant to Health and Safety Code Section 33607.5(a)(2) for the Central City East Redevelopment Project Area Resolution F: Resolution of the Mayor and Common Council of the City of San Bernardino electing the statutory pass-through pursuant to Health and Safety Code Section 33607.5(a)(2) for the Central City South Redevelopment Project Area -.- CENT1{A1 Cl'l' Y Pl{OJEC'l',() i\ ~ . ~\ ~ f--i Itj > f ! jEiliiEl[-'~l '~! _! .._ mmlAL CITY FA~ ~ I=[Jg E .- !~ ~ '::11 t- m ~ _._. IL,.",-, ~ ! ! ' ~ ] "= ___, ~-ilm._ _anl!t~"c;' fl- ~<1~- "';<~J,iJ;'I; (iiii.!, ."~ )[ [E I ,il/:<12 ;}.;;;lL';n!l; :'!JirtL "_._ -""'" .!.\ Co..J L;;;r-=1F~i~ ',,""'.".,. 11m). ;;f(~",. h~. _ro._. JM 1 1>-' l;/' i......"..~.'ii........,...JF....,('~...!....'...fJ...;.1.'.'.' I'.' ~'m._ P -'iT- r' I' ~;M1.Ail' . " Ie' i""'f""c .,Jij~ ~-l- Ej" .;11;= ~ ~ "' ~ =J'-- , ! F Di_ I:=J ~ l.Jdrlt: :r'" ,= . F- = lENI1lAL CITY so~ '\ ~ " \lill t-- _ l ",:n \ \1\,\ II n- CF- I U-. LJ1 _t mIW' - E1--.-:.\ \< l_~ L.. I~ ~ '.r F,_ ~t Y. v f f::=~ /1' j-'3.t! I! .~~. J- '-. . I .- L--{ i j , L ,.' / ! -'7' / /......... ~~~/ j-j / , ! i _ CEfmW._ PIaD Adoptions: MeadowbrooWCenlral City-Na.emiler 1, 1977 59llAcres Ceolnl City East-May 3, 1916 22SAcres Central City South-May 3, 1916 193 Acres . Projects Merged in 1983 Tolal grni itres: l,oos - I . HII I i I 1--- LL.';~ -- : I i -- r~ l1ill ~ -- ~ 1 2 3 4 5 ORDINANCE NO. ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN . FOR THE MEADOWBROOK/CENTRAL CITY REDEVELOPMENT PROJECT AREA 6 WHEREAS, the Redevelopment Agency of the City of San Bemardino (the "Agency") has 7 an approved redevelopment plan for the Meadowbrook/Central City Redevelopment Project Area 8 (the "Redevelopment Plan") pursuant to the provisions of the California Community 9 Redevelopment Law (the "CRL") (Health and Safety Code Section 33000 et seq.) and the City of 10 San Bernardino (the "City") has adopted the Redevelopment Plan by Mayor and Common Council 11 of the City of Sat. Bernardino (the "City Council") Ordinance No. 2233 for Meadowbrook and by 12 Ordinance No. 2649 for Central City and merged Meadowbrook and Central City by Ordinance No. 13 3683; and 14 WHEREAS, the City has subsequently amended such Redevelopment Plan by City Council 15 Ordinance Nos. 3683, MC-558, MC-559, MC-723, MC-9l6, MC-917, MC-I113, MC-1207 and 16 MC-1300 (the Redevelopment Plan as adopted, merged and subsequently amended by the City 17 Council is referred to herein as the "Redevelopment Plan"); and 18 WHEREAS, the Redevelopment Plan currently provides, among other things, that until the 19 date set forth in the Redevelopment Plan (the "Debt Incurrence Deadline") the Agency has 20 authority to establish loans, advances or incur other indebtedness which is repayable from the 21 proceeds of property increment allocated to the Agency under the Redevelopment Plan; and 22 WHEREAS, the termination date for the Redevelopment Plan is May 3, 2019; and 23 WHEREAS, pursuant to CRL Section 33333.6(e)(2), the Debt Incurrence Deadline may be 24 eliminated pursuant to an ordinance ofthe City Council; and 25 WHEREAS, pursuant to CRL Section 33333.6(e)(2), when adopting such an ordinance, 26 neither the City or the Agency is required to comply with CRL Sections 33354.6 or 33450 et seq., 27 or any other provision relating to an amendment of the Redevelopment Plan; and 28 1 P:\A~ndas\Resolutions\Resolutions\2010\04-19.10 Mcadowbrook-<:entral City Debt Ordinance A.doc 1-3(,4 'l/19'/;P 1 WHEREAS, the Agency desires to elirninate the Debt Incurrence Deadline for the 2 Redevelopment Plan in accordance with CRL Section 33333.6; and 3 WHEREAS, subsequent to the elimination of the Debt Incurrence Deadline, the Agency 4 must make the payment to affected taxing entities as required by CRL Section 33607.7; and 5 WHEREAS, the adoption of an ordinance eliminating the Debt Incurrence Deadline is 6 exempt from the requirements of the California Environmental Quality Act ("CEQA"), pursuant to 7 CEQA Guidelines Section l5378(b), because such elimination constitutes the creation of a funding 8 mechanism and/or other governmental fiscal activity which does not involve any commitment to 9 any specific project which may result in a potentially significant physical impact on the 10 environment. 11 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF 12 SAN BERNARDINO DO ORDAIN, AS FOLLOWS: 13 The City Council hereby eliminates the Debt Incurrence Deadline for the Section 1. 14 Redevelopment Plan as authorized under CRL Section 33333.6(e)(2). 15 Section 2. The first three (3) sentences of Section E, Subsection 2 of the Meadowbrook 16 Redevelopment Project Area (Meadowbrook Project No. I) Redevelopment Plan is hereby 17 amended to read as follows: 18 19 20 21 22 "Pursuant to Health and Safety Code Section 33333.6(e)(2), the Agency may establish loans, advances and indebtedness to be paid with the proceeds of property tax increment revenues attributable to the Redevelopment Project at any time prior to the termination of this Plan. Such loans, advances and indebtedness 23 24 25 may be repaid with the proceeds of tax increment revenues received by the Agency after the termination of this Plan." Section 3. The fust three (3) sentences of Section C, Subsection 6 of the Central City 26 Project No. I Redevelopment Plan is hereby amended to read as follows: 27 28 2 P:\AgendasIResolutionslRe,ollltiQos\2010\04-19-10 Meadowbrook-Central City Debt Ordinance A.doc 1 2 3 4 5 6 7 8 "Pursuant to Health and Safety Code Section 33333.6(e)(2), the Agency may establish loans, advances and indebtedness to be paid with the proceeds of property tax increment revenues attributable to the Redevelopment Project at any time prior to the termination of this Plan. Such loans, advances and indebtedness may be repaid with the proceeds of tax increment revenues received by the Agency after the termination of this Plan." Section 4. The City Council fmds and determines that the amendment to the 9 Redevelopment Plan as provided in this Ordinance is in compliance with CRL Section 10 33333.6(e)(2). 11 Section 5. The Redevelopment Plan, as amended by this Ordinance, shall remain in full 12 force and effect, unmodified except to the extent of the amendment expressly set forth in this 13 Ordinance. 14 Section 6. The Interim Executive Director of the Agency is hereby authorized and 15 directed to undertake such actions and execute such documents as may be reasonably necessary or 16 convenient to administer the actions authorized by this Ordinance. 17 Section 7. If a court may determine that any provision of this Ordinance is invalid, such 18 invalid provision shall be severed from this Ordinance and the remaining provisions of the 19 Ordinance shall be given full force and effect. 20 Section 8. The City Council hereby authorizes and directs the Agency staff to prepare, 21 in accordance with CEQA, a Notice of Exemption for filing with the Clerk of the County in 22 connection with the adoption of this Ordinance. 23 Section 9. The City Clerk is hereby authorized and directed to cause this Ordinance to 24 be published in a newspaper of general circulation in the manner required by law. 25 III 26 27 28 III III III 3 P:\Agendas\Resolutions\RelOlutioDll\20 I 0\04-19. JO Meadowbrook-CcntraI City Debt Ordinance A,doc ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE MEADOWBROOK/CENTRAL CITY REDEVELOPMENT PROJECT AREA 1 2 3 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 5 Common Council of the City of San Bemardino at a ,2010, by the following vote to wit: 6 thereof, held on the day of 7 Council Members: Ayes 8 MARQUEZ 9 DESJARDINS 10 BRINKER 11 SHORETT 12 KELLEY 13 JOHNSON 14 MC CAMMACK 15 16 Nays 17 18 The foregoing Ordinance is hereby approved this 19 20 21 22 Approved as to Form and Legal Content: 23 .~ 24 By: 25 26 27 28 4 P:\Agendas\Resolutions\Resolutions\20 I 0\04.19-1 0 Meadowbrook-Central city Debt Ordinance A.doc Abstain Absent Rachel G. Clark, City Clerk day of Patrick J. Morris, Mayor City of San Bernardino meeting ,2010. 1 2 3 4 5 ORDINANCE NO. ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA 6 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") has 7 an approved redevelopment plan for the Central City East Redevelopment Project Area (the 8 "Redevelopment Plan") pursuant to the provisions of the California Community Redevelopment 9 Law (the "CRL") (Health and Safety Code Section 33000 et seq.) and the City of San Bernardino 10 (the "City") has adopted the Redevelopment Plan by Mayor and Common Council of the City of 11 San Bemardino (the "City Council") Ordinance No. 3571, and the City has subsequently amended 12 such Redevelopment Plan by City Council Ordinance Nos. MC-563, MC- 721, MC-918, MC-l I 12, 13 MC-1209 and MC-I302 (the Redevelopment Plan as adopted and subsequently amended by the 14 City Council is referred to herein as the "Redevelopment Plan"); and 15 WHEREAS, the Redevelopment Plan currently provides, among other things, that until the 16 date set forth in the Redevelopment Plan (the "Debt Incurrence Deadline") the Agency has 17 authority to establish loans, advances or incur other indebtedness which is repayable from the 18 proceeds of property tax increment allocated to the Agency under the Redevelopment Plan; and 19 WHEREAS, the termination date for the Redevelopment Plan is May 3, 2019; and 20 WHEREAS, pursuant to CRL Section 33333.6(e)(2), the Debt Incurrence Deadline may be 21 eliminated pursuant to an ordinance of the City Council; and 22 WHEREAS, pursuant to CRL Section 33333.6(e)(2), when adopting such an ordinance, 23 neither the City or the Agency is required to comply with CRL Sections 33354.6 or 33450 et seq., 24 or any other provision relating to an amendment of the Redevelopment Plan; and 25 WHEREAS, the Agency desires to eliminate the Debt Incurrence Deadline for the 26 Redevelopment Plan in accordance with CRL Section 33333.6; and 27 WHEREAS, subsequent to the elimination of the Debt Incurrence Deadline, the Agency 28 must make the payment to affected taxing entities as required by CRL Section 33607.7; and 1 4f 1(-3"C ~1I?//t7 P:\AgendasIJl..esoJutions\Resolutions\20 1 0\04-19-1 0 Central City East Debt Ordinance C.doc 1 WHEREAS, the adoption of an ordinance eliminating the Debt Incurrence Deadline is 2 exempt from the requirements of the California Environmental Quality Act ("CEQA"), pursuant to 3 CEQA Guidelines Section 153 78(b), because such elimination constitutes the creation of a funding 4 mechanism and/or other governmental fiscal activity which does not involve any commitment to 5 any specific project which may result in a potentially significant physical impact on the 6 environment. 7 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF 8 SAN BERNARDINO DO ORDAIN, AS FOLLOWS: 9 Section 1. The City Council hereby eliminates the Debt Incurrence Deadline for the 10 Redevelopment Plan as authorized under CRL Section 33333.6(e)(2). 11 Section 2. The first three (3) sentences of the last paragraph of Section VI. D. of the 12 Redevelopment Plan is hereby amended to read as follows: 13 14 15 16 "Pursuant to Health and Safety Code Section 33333.6(e)(2), the Agency may establish loans, advances and indebtedness to be paid with the proceeds of property tax increment revenues attributable to the Redevelopment Project at any time prior to the termination of this Plan. Such loans, advances and indebtedness 17 18 19 20 may be repaid with the proceeds of tax increment revenues received by the Agency after the termination of this Plan." Section 3. The City Council finds and determines that the amendment to the 21 Redevelopment Plan as provided in this Ordinance is in compliance with CRL Section 22 33333.6(e)(2). 23 Section 4. The Redevelopment Plan, as amended by this Ordinance, shall remain in full 24 force and effect, unmodified except to the extent of the amendment expressly set forth in this 25 Ordinance. 26 Section 5. The Interim Executive Director of the Agency is hereby authorized and 27 directed to undertake such actions and execute such documents as may be reasonably necessary or 28 convenient to administer the actions authorized by this Ordinance. 2 P:~ndas\ResolutionslR.esolulionsI2010\04-19-10 Central City East Debt Ordinance C.doc 1 Section 6. If a court may determine that any provision of this Ordinance is invalid, such 2 invalid provision shall be severed from this Ordinance and the remaining provisions of the 3 Ordinance shall be given full force and effect. 4 Section 7. The City Council hereby authorizes and directs the Agency Staff to prepare, 5 1D accordance with CEQA, a Notice of Exemption for filing with the Clerk of the County in 6 connection with the adoption of this Ordinance. 7 Section 8. The City Clerk is hereby authorized and directed to cause this Ordinance to 8 be published in a newspaper of general circulation in the manner required by law. 9 III 10 III 11 III 12 III 13 III 14 II/ 15 III 16 III 17 III 18 III 19 /11 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 3 P :\Agendas\Resolutions\Resolutions\20J 0\04-19.1 0 CenlraJ city East Debt Ordinance C.doc 1 2 3 4 ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 5 Common Council of the City of San Bemardino at a meeting day of ,2010, by the following vote to wit: Aves Navs Abstain Absent Rachel G. Clark, City Clerk 19 The foregoing Ordinance is hereby approved this 20 21 22 day of ,2010. Patrick 1. Morris, Mayor City of San Bernardino : ::pro~OO7 ~moot 25 ~, City Attomey 26 27 28 4 P :\AgcndllsIResolutionslRcsolutionsI2.0 I O\()4..19.] 0 Central City East ~bt Ordinance C.doc 1 2 3 4 5 ORDINANCE NO. ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY SOUTH REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") has 6 an approved redevelopment plan for the Central City South Redevelopment Project Area (the 7 "Redevelopment Plan") pursuant to the provisions of the California Community Redevelopment 8 Law (the "CRL") (Health and Safety Code Section 33000 et seq.) and the City of San Bernardino 9 (the "City") has adopted the Redevelopment Plan by the Mayor and Common Council of the City of 10 San Bernardino (the "City Council") Ordinance No. 3572, and the City has subsequently amended 11 . such Redevelopment Plan by City Council Ordinance Nos. MC-564, MC-724, MC-9l9, MC-II04, 12 MC-1208 and MC-l30l (the Redevelopment Plan, as adopted and subsequently amended by the 13 City Council is referred to herein as the "Redevelopment Plan"); and 14 WHEREAS, the Redevelopment Plan currently provides, among other things, that until the 15 date set forth in the Redevelopment Plan (the "Debt Incurrence Deadline") the Agency has 16 authority to establish loans, advances or incur other indebtedness which is repayable from the 17 proceeds of property tax increment allocated to the Agency under the Redevelopment Plan; and 18 19 WHEREAS, the termination date for the Redevelopment Plan is May 3,2019; and WHEREAS, pursuant to CRL Section 33333.6(e)(2), the Debt Incurrence Deadline may be 20 eliminated pursuant to an ordinance of the City Council; and 21 WHEREAS, pursuant to CRL Section 33333.6(e)(2), when adopting such an ordinance, 22 neither the City or the Agency is required to comply with CRL Sections 33354.6 or 33450 et seq., 23 or any other provision relating to an amendment of the Redevelopment Plan; and 24 WHEREAS, the Agency desires to eliminate the Debt Incurrence Deadline for the 25 Redevelopment Plan in accordance with CRL Section 33333.6; and 26 WHEREAS, subsequent to the elimination of the Debt Incurrence Deadline, the Agency 27 must make the payment to affected taxing entities as required by CRL Section 33607.7; and 28 P:\AgendasIResolutionslResolutions\20 I 0\04-19-1 0 Central City South Debt Ordinance E_dot I 1t~3~E '//If/lt? 1 WHEREAS, the adoption of an ordinance eliminating the Debt Incurrence Deadline is 2 exempt from the requirements of the California Environmental Quality Act ("CEQA"), pursuant to 3 CEQA Guidelines Section 15378(b), because such elimination constitutes the creation ofa funding 4 mechanism and/or other governmental fiscal activity which does not involve any commitment to 5 any specific project which may result in a potentially significant physical impact on the 6 environment. 7 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF 8 SAN BERNARDINO DO ORDAIN, AS FOLLOWS: 9 Section 1. The City Council hereby eliminates the Debt Incurrence Deadline for the 10 Redevelopment Plan as authorized under CRL Section 33333.6(e)(2). 11 The first three (3) sentences of the last paragraph of Section VI. D. of the' Section 2. 12 Redevelopment Plan is hereby amended to read as follows: 13 14 15 16 17 18 19 "Pursuant to Health and Safety Code Section 33333.6(e)(2), the Agency may establish loans, advances and indebtedness to be paid with the proceeds of property tax increment revenues attributable to the Redevelopment Project at any time prior to the termination of this Plan. Such loans, advances and indebtedness may be repaid with the proceeds of tax increment revenues received by the Agency after the termination of this Plan." 20 Section 3. The City Council finds and determines that the amendment to the 21 Redevelopment Plan as provided in this Ordinance is in compliance with CRL Section 22 33333.6(e)(2). 23 The Redevelopment Plan, as amended by this Ordinance, shall remain in full Section 4. 24 force and effect, unmodified except to the extent of the amendment expressly set forth in this 25 0 d' r mance. 26 Section 5. The Interim Executive Director of the Agency is hereby authorized and 27 directed to undertake such actions and execute such documents as may be reasonably necessary or 28 convenient to administer the actions authorized by this Ordinance. 2 P :\Agendas\Resolutions\Resolutions\20 1 0\04-19-1 0 Central City South Debt Ordinance E,doc 1 Section 6. If a court may determine that any provision of this Ordinance is invalid, such 2 invalid provision shall be severed from this Ordinance and the remaining provisions of the 3 Ordinance shall be given full force and effect. 4 Section 7. The City Council hereby authorizes and directs the Agency Staff to prepare, 5 in accordance with CEQA, a Notice of Exemption for filing with the Clerk of the County in 6 connection with the adoption of this Ordinance. 7 Section 8. The City Clerk is hereby authorized and directed to cause this Ordinance to 8 be published in a newspaper of general circulation in the manner required by law. 9 1/1 10 /II 11 /II 12 /II 13 1/1 14 /II 15 /II 16 /II 17 /II 18 1/1 19 1/1 20 1/1 21 1/1 22 /II 23 /II 24 /II 25 1/1 26 1/1 27 /II 28 1/1 3 P:\Agendas\Resolutions\Resolutions\2010104-19-10 CenuaI City South Debt Ordinance E,doc 1 2 3 4 ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY SOUTH REDEVELOPMENT PROJECT AREA I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting ,2010, by the following vote to wit: Navs Abstain Absent Rachel G. Clark, City Clerk 17 18 The foregoing Ordinance is hereby approved this 19 20 21 22 day of ,2010. Patrick 1. Morris, Mayor City of San Bernardino Approved as to Form and Legal Content: 23 24 By: 25 26 27 28 4 P:"^8eOOas\Resolutions\Resolutions\2010\04.19.10 Central City South Debt Ordinance E_doc