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Home My WebLink AboutCity Council Item No. 12CITY OF CC! LADE I LSMOKE -l ` DREAM EXTREME- REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: JULY 26, 2011 SUBJECT: ORDINANCE CORRECTING AND RESTATING NUNC PRO TUNC CERTAIN TIME LIMITS SPECIFIED IN ORDINANCE NO. 987 AND AFFIRMING CERTAIN TIME LIMITS SPECIFIED IN ORDINANCE NO. 1249 AS TO THE REDEVELOPMENT PLANS FOR THE LAKE ELSINORE RANCHO LAGUNA REDEVELOPMENT PROJECT AREAS NO. I, NO. II and NO. III Background Ordinance No. 987 was adopted by the City Council of the City of Lake Elsinore on November 22, 1994 to amend certain time limits under the City's three Redevelopment Plans pursuant to the requirements of the California Community Redevelopment Law (Part 1 of Division 24, commencing with California Health & Safety Code Section 33000) ("CRL") as amended by Assembly Bill 1290. The Ordinance incorporated certain technical errors resulting from misinterpretation of AB 1290 statutory requirements and mathematical miscalculations of the amended time limits. By Ordinance No. 1249 adopted on February 26, 2008, the City Council enacted certain amendments to the time limitations in the Redevelopment Plans and corrected, amended and restated nunc pro tunc certain time limitations specified in Ordinance No. 987. By Ordinance No, 1249, the City Council also eliminated the time limit to incur debt pursuant to Section 33333.6(e)(2) of the CRL in the Rancho Laguna Redevelopment Project Area No. I in order to implement the purposes, goals and objectives of the Redevelopment Plan and thereby triggered certain statutory payment obligations to various taxing entities. Ordinance No. 1249 also eliminated the time limit to incur debt pursuant to Section 33333.6(e)(4) of the CRL in Rancho Laguna Redevelopment Project Areas No. II and No. III solely as to debt paid from the Agency's Low and Moderate Income Housing Fund in order to fulfill the Agency's affordable housing purposes. No statutory pass-through obligations were triggered as to Project Areas No. II and No. III. AGENDA ITEM NO. 12 Page 1 of 5 Ordinance Correcting Certain Time Limits July 26, 2011 Page 2 of 2 Discussion In March 2010, the Redevelopment Agency concluded discussions with various taxing entities regarding pass through payments due pursuant to the Redevelopment Plans and applicable provisions of the CRL at which time the parties agreed that further clarification of the time limitations adopted by Ordinance No. 987 were appropriate. The proposed Ordinance presented to the City Council effects those further clarifications to the purpose and intent of Ordinance No. 987 as to the applicable time limit to incur debt for each Project Area in accordance with the requirements Section 33333.6 as amended by AB 1290 and affirms the actions as to certain time limitations enacted by Ordinance No. 1249. Fiscal Impact The proposed Ordinance is a housekeeping item correcting technical errors in Ordinance No. 987 adopted in 1994 and affirming the amendments to certain limitations in the Redevelopment Plans adopted by Ordinance No. 1249 thus clarifying the applicable statutory pass through payments under the CRL consistent with recent discussions among the Agency and various taxing entities. The Agency's fiscal consultant and finance team annually calculate the statutory pass-through payments. Recommendations Waive further reading and introduce by title only Ordinance No 2011-1292 Correcting And Restating Nunc Pro Tunc Certain Time Limits Specified In Ordinance No. 987 And Affirming Certain Time Limits Specified In Ordinance No. 1249 As To The Redevelopment Plans For The Lake Elsinore Rancho Laguna Redevelopment Project Areas No. I, No. II and No. III. Prepared by: Barbara Leibold City Attorney Approved by: Robert A. Brady City Manager Attachment: Ordinance No. 2011-1291 Page 2 of 5 ORDINANCE NO. 2011-1292 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, CORRECTING AND RESTATING NUNC PRO TUNC CERTAIN TIME LIMITS SPECIFIED IN ORDINANCE NO. 987 AND AFFIRMING CERTAIN TIME LIMITS SPECIFIED IN ORDINANCE NO. 1249 AS TO THE REDEVELOPMENT PLANS FOR THE LAKE ELSINORE RANCHO LAGUNA REDEVELOPMENT PROJECT AREAS NO. I, NO. II and NO. III WHEREAS, by Ordinance No. 987 adopted on November 8, 1994, the City Council of the City of Lake Elsinore ("City Council") amended certain limitations of the .Redevelopment Plans for the Rancho Laguna Redevelopment Projects Areas I, II and III pursuant to the requirements of the California Community Redevelopment Law (Part 1 of Division 24, commencing with California Health & Safety Code Section 33000) ("CRL") as amended by Assembly Bill 1290, including (i) the time limit as to the effectiveness of each Redevelopment Plan, (ii) the time limit to receive property taxes to repay indebtedness in each Project Area, and (iii) the time limit after which the Agency may not incur debt in conjunction with implementation of each Redevelopment Plan; WHEREAS, by its adoption of Ordinance No. 987, the City Council intended to "comply with the time limitations pursuant to Section 33333.6" as amended by AB 1290 but made certain technical and clerical errors in the calculation of those time limitations; WHEREAS, by Ordinance No. 1249 adopted on February 26, 2008, the City Council corrected, amended and restated nunc pro tunc certain time limitations of the Redevelopment Plans specified in Ordinance No. 987; WHEREAS, by Ordinance No, 1249, the City Council also eliminated the time limit to incur debt pursuant to Section 33333.6(e)(2) of the CRL in the Rancho Laguna Redevelopment Project Area No. I in order to implement the purposes, goals and objectives of the Redevelopment Plan and eliminated the time limit to incur debt pursuant to Section 33333.6(e)(4) of the CRL in Rancho Laguna Redevelopment Project Areas No. II and No. III solely as to debt paid from the Agency's Low and Moderate Income Housing Fund in order to fulfill the Agency's affordable housing purposes, and WHEREAS, the City Council desires to further clarify the purpose and intent of Ordinance No. 987 as to the applicable time limit to incur debt for each Project Area in accordance with the requirements Section 33333.6 as amended by AB 1290 and to affirm the actions as to those limits enacted by Ordinance No. 1249. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: Page 3 of 5 SECTION 1. The time limitation specified in Ordinance No. 987 to incur indebtedness under each of the Redevelopment Plans is restated nunc pro tunc as follows: (i) Rancho Laguna Redevelopment Project Area No. I: July 20, 2001, (ii) Rancho Laguna Redevelopment Project Area No. II: July 18, 2003, and (iii) Rancho Laguna Redevelopment Project Area No. III: September 8, 2007. SECTION 2. The City Council affirms the elimination of the time limitation to incur indebtedness in order to implement the purposes, goals and objectives under the Redevelopment Plan for the Rancho Laguna Redevelopment Project Area No. 1 as enacted by the adoption of Ordinance No. 1249. SECTION 3. The City Council affirms the elimination of the time limitation to incur debt as to Redevelopment Project Areas No. II and No. III solely as to loans, advances and indebtedness paid solely from the Agency's Low and Moderate Income Housing Fund as enacted by the adoption of Ordinance No. 1249. SECTION 4. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance and to cause the same or a summary thereof to be published in the manner required by law. SECTION 6. This Ordinance shall be in full force and effect thirty (30) days after its passage and adoption. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this day of 2011. AMY BHUTTA, MAYOR ATTEST: VIRGINIA BLOOM, CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD, CITY ATTORNEY Page 4 of 5 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF LAKE ELSINORE ) I, Virginia Bloom, City Clerk of the City of Lake Elsinore, California, hereby certify that the foregoing Ordinance No. 2011-1292 was introduced at a regular meeting of the City Council of the City of Lake Elsinore on the 26th day of July, 2011, and was finally passed at a regular meeting of the City Council of the City of Lake Elsinore held on the day of , 2011 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: VIRGINIA BLOOM, CITY CLERK Page 5 of 5