SR-414-000
RMd:Housing:BM:TR:resource/share/staffreports/SB1045.doc
City and Agency Joint Meeting: December 16, 2003 Santa Monica, California
TO: Mayor and City Council
Chairperson and Redevelopment Agency
From: City Staff
Subject: Adoption of Ordinances To Extend the Time Limits on the Effectiveness of
the Redevelopment Plans and the Time Limits for Paying Indebtedness and
Receiving Property Taxes for the Earthquake Recovery, Downtown, Ocean
Park 1A, and Ocean Park 1B Redevelopment Project Areas
Introduction
This report recommends that the Redevelopment Agency Board request City Council to
introduce for first reading four ordinances, one each for the Earthquake Recovery,
Downtown, Ocean Park 1A, and Ocean Park 1B Redevelopment Project Areas
(collectively, the ?Project Areas?), extending by one year the time limit on the effectiveness
of the Redevelopment Plans for the Project Areas and the time limit for paying
indebtedness and receiving property taxes in each of the Redevelopment Plans for the
Project Areas. This action is in response to the recently passed Senate Bill 1045 (?SB
1045?), and offsets the costs associated with the Educational Revenue Augmentation Fund
(?ERAF?) payments required by this legislation.
Background
The last two years the State has required local funding sources such as Redevelopment
Agencies to provide needed funding to cover funding gaps resulting from the State?s
abrogation of its responsibility to fund schools.
1
Effective September 2, 2003, SB 1045 sets forth requirements for ERAF payments by
redevelopment agencies throughout the State of California as a means of covering a
portion of the State?s budget shortfall for the FY 2003-2004. Specifically, Sections 33333.2
(which applies to redevelopment plans adopted after January 1, 1994) and 33333.6 (which
applies to redevelopment plans adopted before January 1, 1994) of the Health and Safety
Code were amended to provide redevelopment agencies with the ability to extend both the
redevelopment plan effectiveness and the debt repayment/receipt of property taxes time
limits for their redevelopment areas by one year if required to make an ERAF payment in
FY 2003-2004. SB 1045 allows these time limits to be extended by a summary ordinance
adopted by the legislative body of the redevelopment agency. Attachment E summarizes
the revised time limits.
Discussion
Extension of the current time limits in each of the Project Areas by one year would help
offset the costs of the ERAF payment ($1,611,079) required by SB 1045 for fiscal year
2003-04 by allowing one additional year of tax increment to be collected to be used for the
repayment of debt. This additional year of tax increment can also be leveraged, thereby
furthering the Agency?s ability to finance redevelopment activities, including those related to
the production and preservation of affordable housing and to continue redevelopment
activities.
2
Budget/Financial Impact
Extension of the current time limits in each of the Project Areas by one year as described
herein will allow one additional year of tax increment to be collected to be used for the
repayment of debt. This tax increment could be leveraged, thereby furthering the Agency?s
ability to finance redevelop.
Recommendations
It is recommended that the City Council introduce for first reading the attached ordinances,
extending by one year the time limit on the effectiveness of each of the Redevelopment
Plans for the Project Areas and the time limit for paying indebtedness and receiving
property taxes in each of the Redevelopment Plans for the Project Areas, and that the
Agency consent to this action.
Prepared by: Jeff Mathieu, Director Resource Management Dept.
Bob Moncrief, Housing Manager
Tina Rodriguez, Redevelopment Administrator
Marty Kennerly, Administrative Services Officer
Attachments: A - Earthquake Recovery Ordinance
B - Downtown Ordinance
C - Ocean Park 1A Ordinance
D - Ocean Park 1B Ordinance
E - Redevelopment Plans Summary
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Attachment A
ORDINANCE NO._________ (CCS)
(CITY COUNCIL SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF SANTA MONICA
AMENDING THE REDEVELOPMENT PLAN FOR THE SANTA MONICA
EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT
TO EXTEND CERTAIN TIME LIMITS
WHEREAS, the Redevelopment Plan (?Redevelopment Plan?) for the Santa Monica
Earthquake Recovery Redevelopment Project (?Project Area?) was approved and adopted
by the City Council of the City of Santa Monica (?City Council?) on June 21, 1994, by
Ordinance No. 1747; and
WHEREAS, Health and Safety Code Section 33333.2 applies to every
redevelopment plan adopted on or after January 1, 1994; and
WHEREAS, the Project Area was adopted on or after January 1, 1994;
WHEREAS, pursuant to Health and Safety Code Section 33333.2(a)(2), the
Redevelopment Plan contains a time limit for the effectiveness of the Redevelopment Plan;
and
WHEREAS, pursuant to Health and Safety Code Section 33333.2(a)(3), the
Redevelopment Plan contains a time limit for the payment of indebtedness and receipt of
property taxes; and
WHEREAS, the California State Legislature has enacted SB 1045, making various
amendments to the Community Redevelopment Law (Health and Safety Code Section
4
33000 et seq.), which was chaptered as Chapter 260 and became effective on September
2, 2003; and
WHEREAS, Health and Safety Code Section 33333.2(c), as amended by SB 1045,
provides that when an agency is required to make a payment pursuant to Health and
Safety Code Section 33681.9, the legislative body may amend the redevelopment plan to
extend the time limits required pursuant to paragraphs (2) and (3) of subdivision (a) of
Health and Safety Code Section 33333.2 by one year by adoption of an ordinance, without
the necessity of compliance with Health and Safety Code Section 33354.6 or Article 12 of
the Community Redevelopment Law (commencing with Section 33450) or any other
provision relating to amendments; and
WHEREAS, the Redevelopment Agency of the City of Santa Monica (?Agency?) is
required to make a payment pursuant to Health and Safety Code Section 33681.9; and
WHEREAS, the Agency and the City Council desire to extend by one year the time
limit on the effectiveness of the Redevelopment Plan and the time limit for paying
indebtedness and receiving property taxes for the Project Area.
NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as
follows:
SECTION 1. Amendment of Time Limits. In accordance with Health and Safety
Code Section 33333.2(c), and notwithstanding any other provision in the Redevelopment
Plan, the City Council hereby amends the Redevelopment Plan as stated herein by
adoption of this Ordinance, and establishes the following limitations:
5
A. Plan Effectiveness. Except for the non-discrimination and non-
segregation provisions, which shall run in perpetuity, the provisions of the Redevelopment
Plan shall be effective and the provisions of other documents formulated pursuant to the
Redevelopment Plan may be made effective for the period ending thirty-one (31) years
from the date of adoption of the Redevelopment Plan, or June 21, 2025.
B. Repayment of Indebtedness; Receipt of Property Taxes. No
indebtedness to finance, in whole or in part, the Project Area and which is to be repaid from
the division and allocation of taxes of the Agency shall be repaid with such taxes beyond
forty-six (46) years from the date of adoption of the Redevelopment Plan, or June 21, 2040.
SECTION 2. Application. The limitations established in this Ordinance shall apply to
the Redevelopment Plan for the Santa Monica Earthquake Recovery Redevelopment
Project and may only be amended in the manner required and to the extent permitted by
law.
SECTION 3. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this
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Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
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Attachment B
ORDINANCE NO._________ (CCS)
(CITY COUNCIL SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF SANTA MONICA
AMENDING THE REDEVELOPMENT PLAN FOR THE
DOWNTOWN REDEVELOPMENT PROJECT
TO EXTEND CERTAIN TIME LIMITS
WHEREAS, the Redevelopment Plan (?Redevelopment Plan?) for the Downtown
Redevelopment Project (?Project Area?) was approved and adopted by the City Council of
the City of Santa Monica (?City Council?) on January 13, 1976, by Ordinance No. 1021; and
WHEREAS, Health and Safety Code Section 33333.6 applies to every
redevelopment plan adopted on or before December 31, 1993; and
WHEREAS, the Project Area was adopted on or before December 31, 1993;
WHEREAS, pursuant to Health and Safety Code Section 33333.6(a), the
Redevelopment Plan contains a time limit for the effectiveness of the Redevelopment Plan;
and
WHEREAS, pursuant to Health and Safety Code Section 33333.6(b), the
Redevelopment Plan contains a time limit for the payment of indebtedness and receipt of
property taxes; and
WHEREAS, the California State Legislature has enacted SB 1045, making various
amendments to the Community Redevelopment Law (Health and Safety Code Section
33000 et seq.), which was chaptered as Chapter 260 and became effective on September
2, 2003; and
8
WHEREAS, Health and Safety Code Section 33333.6(e)(2)(C), as amended by SB
1045, provides that when an agency is required to make a payment pursuant to Health and
Safety Code Section 33681.9, the legislative body may amend the redevelopment plan to
extend the time limits required pursuant to subdivisions (a) and (b) of Health and Safety
Code Section 33333.6 by one year by adoption of an ordinance, without the necessity of
compliance with Health and Safety Code Section 33354.6 or Article 12 of the Community
Redevelopment Law (commencing with Section 33450) or any other provision relating to
amendments, including, but not limited to, the requirement to make payments to affected
taxing entities required by Health and Safety Code Section 33607.7; and
WHEREAS, the Redevelopment Agency of the City of Santa Monica (?Agency?) is
required to make a payment pursuant to Health and Safety Code Section 33681.9; and
WHEREAS, the Agency and the City Council desire to extend by one year the time
limit on the effectiveness of the Redevelopment Plan and the time limit for paying
indebtedness and receiving property taxes for the Project Area.
NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as
follows:
SECTION 1. Amendment of Time Limits. In accordance with Health and Safety
Code Section 33333.6(e)(2)(C), and notwithstanding any other provision in the
Redevelopment Plan, the City Council hereby amends the Redevelopment Plan as stated
herein by adoption of this Ordinance, and establishes the following limitations:
9
A. Plan Effectiveness. In accordance with Health and Safety Code
Section 33333.6(a), the effectiveness of the Redevelopment Plan for the Downtown
Redevelopment Project shall terminate January 13, 2017.
B. Repayment of Indebtedness; Receipt of Property Taxes. In
accordance with Health and Safety Code Section 33333.6(b), except as provided in
subdivisions (f) and (g) of Health and Safety Code Section 33333.6, the Agency shall not
pay indebtedness or receive property taxes pursuant to Health and Safety Code Section
33670 after January 13, 2027, for the purposes of the Downtown Redevelopment Project.
SECTION 2. Application. The limitations established in this Ordinance shall apply to
the Redevelopment Plan for the Downtown Redevelopment Project and may only be
amended in the manner required and to the extent permitted by law.
SECTION 3. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
10
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
11
Attachment C
ORDINANCE NO._________ (CCS)
(CITY COUNCIL SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF SANTA MONICA
AMENDING THE REDEVELOPMENT PLAN FOR THE
OCEAN PARK REDEVELOPMENT PROJECT 1(a)
TO EXTEND CERTAIN TIME LIMITS
WHEREAS, the Redevelopment Plan (?Redevelopment Plan?) for the Ocean Park
Redevelopment Project 1(a) (?Project Area?) was approved and adopted by the City Council
of the City of Santa Monica (?City Council?) on June 30, 1960, by Ordinance No. 497; and
WHEREAS, Health and Safety Code Section 33333.6 applies to every
redevelopment plan adopted on or before December 31, 1993; and
WHEREAS, the Project Area was adopted on or before December 31, 1993;
WHEREAS, pursuant to Health and Safety Code Section 33333.6(a), the
Redevelopment Plan contains a time limit for the effectiveness of the Redevelopment Plan;
and
WHEREAS, pursuant to Health and Safety Code Section 33333.6(b), the
Redevelopment Plan contains a time limit for the payment of indebtedness and receipt of
property taxes; and
WHEREAS, the California State Legislature has enacted SB 1045, making various
amendments to the Community Redevelopment Law (Health and Safety Code Section
33000 et seq.), which was chaptered as Chapter 260 and became effective on September
2, 2003; and
12
WHEREAS, Health and Safety Code Section 33333.6(e)(2)(C), as amended by SB
1045, provides that when an agency is required to make a payment pursuant to Health and
Safety Code Section 33681.9, the legislative body may amend the redevelopment plan to
extend the time limits required pursuant to subdivisions (a) and (b) of Health and Safety
Code Section 33333.6 by one year by adoption of an ordinance, without the necessity of
compliance with Health and Safety Code Section 33354.6 or Article 12 of the Community
Redevelopment Law (commencing with Section 33450) or any other provision relating to
amendments, including, but not limited to, the requirement to make payments to affected
taxing entities required by Health and Safety Code Section 33607.7; and
WHEREAS, the Redevelopment Agency of the City of Santa Monica (?Agency?) is
required to make a payment pursuant to Health and Safety Code Section 33681.9; and
WHEREAS, the Agency and the City Council desire to extend by one year the time
limit on the effectiveness of the Redevelopment Plan and the time limit for paying
indebtedness and receiving property taxes for the Project Area.
NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as
follows:
SECTION 1. Amendment of Time Limits. In accordance with Health and Safety
Code Section 33333.6(e)(2)(C), and notwithstanding any other provision in the
Redevelopment Plan, the City Council hereby amends the Redevelopment Plan as stated
herein by adoption of this Ordinance, and establishes the following limitations:
13
A. Plan Effectiveness. In accordance with Health and Safety Code
Section 33333.6(a), the effectiveness of the Redevelopment Plan for the Ocean Park
Redevelopment Project 1(a) shall terminate January 1, 2010.
B. Repayment of Indebtedness; Receipt of Property Taxes. In
accordance with Health and Safety Code Section 33333.6(b), except as provided in
subdivisions (f) and (g) of Health and Safety Code Section 33333.6, the Agency shall not
pay indebtedness or receive property taxes pursuant to Health and Safety Code Section
33670 after January 1, 2020, for the purposes of the Ocean Park Redevelopment Project
1(a).
SECTION 2. Application. The limitations established in this Ordinance shall apply to
the Redevelopment Plan for the Ocean Park Redevelopment Project 1(a) and may only be
amended in the manner required and to the extent permitted by law.
SECTION 3. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
14
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
15
Attachment D
ORDINANCE NO._________ (CCS)
(CITY COUNCIL SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF SANTA MONICA
AMENDING THE REDEVELOPMENT PLAN FOR THE
OCEAN PARK REDEVELOPMENT PROJECT 1(b)
TO EXTEND CERTAIN TIME LIMITS
WHEREAS, the Redevelopment Plan (?Redevelopment Plan?) for the Ocean Park
Redevelopment Project 1(b) (?Original Project Area?) was approved and adopted by the
City Council of the City of Santa Monica (?City Council?) on January 24, 1961, by Ordinance
No. 516; and
WHEREAS, the Redevelopment Plan was amended by Ordinance of the City
Council November, 1964, to, among other things, expand the boundaries of the Original
Project Area, hereinafter referred to as the ?Added Territory;? and
WHEREAS, Health and Safety Code Section 33333.6 applies to every
redevelopment plan adopted on or before December 31, 1993; and
WHEREAS, the Original Project Area and the Added Territory were adopted on or
before December 31, 1993;
WHEREAS, pursuant to Health and Safety Code Section 33333.6(a), the
Redevelopment Plan contains time limits for the effectiveness of the Redevelopment Plan
for the Original Project Area and the Added Territory; and
16
WHEREAS, pursuant to Health and Safety Code Section 33333.6(b), the
Redevelopment Plan contains time limits for the payment of indebtedness and receipt of
property taxes for the Original Project Area and the Added Territory; and
WHEREAS, the California State Legislature has enacted SB 1045, making various
amendments to the Community Redevelopment Law (Health and Safety Code Section
33000 et seq.), which was chaptered as Chapter 260 and became effective on September
2, 2003; and
WHEREAS, Health and Safety Code Section 33333.6(e)(2)(C), as amended by SB
1045, provides that when an agency is required to make a payment pursuant to Health and
Safety Code Section 33681.9, the legislative body may amend the redevelopment plan to
extend the time limits required pursuant to subdivisions (a) and (b) of Health and Safety
Code Section 33333.6 by one year by adoption of an ordinance, without the necessity of
compliance with Health and Safety Code Section 33354.6 or Article 12 of the Community
Redevelopment Law (commencing with Section 33450) or any other provision relating to
amendments, including, but not limited to, the requirement to make payments to affected
taxing entities required by Health and Safety Code Section 33607.7; and
WHEREAS, the Redevelopment Agency of the City of Santa Monica (?Agency?) is
required to make a payment pursuant to Health and Safety Code Section 33681.9; and
WHEREAS, the Agency and the City Council desire to extend by one year the time
limit on the effectiveness of the Redevelopment Plan and the time limit for paying
indebtedness and receiving property taxes for the Original Project Area and the Added
Territory.
17
NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as
follows:
SECTION 1. Amendment of Time Limits. In accordance with Health and Safety
Code Section 33333.6(e)(2)(C), and notwithstanding any other provision in the
Redevelopment Plan, the City Council hereby amends the Redevelopment Plan as stated
herein by adoption of this Ordinance, and establishes the following limitations:
A. Plan Effectiveness.
(1) Original Project Area. In accordance with Health and Safety
Code Section 33333.6(a), the effectiveness of the Redevelopment Plan for the Ocean Park
Redevelopment Project 1(b), Original Project Area, shall terminate January 1, 2010.
(2) Added Territory. In accordance with Health and Safety Code
Section 33333.6(a), the effectiveness of the Redevelopment Plan for the Ocean Park
Redevelopment Project 1(b) Added Territory, shall terminate January 1, 2010.
B. Repayment of Indebtedness; Receipt of Property Taxes.
(1) Original Project Area. In accordance with Health and Safety
Code Section 33333.6(b), except as provided in subdivisions (f) and (g) of Health and
Safety Code Section 33333.6, the Agency shall not pay indebtedness or receive property
taxes pursuant to Health and Safety Code Section 33670 after January 1, 2020, for the
purposes of the Ocean Park Redevelopment Project 1(b), Original Project Area.
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(2) Added Territory. In accordance with Health and Safety Code
Section 33333.6(b), except as provided in subdivisions (f) and (g) of Health and Safety
Code Section 33333.6, the Agency shall not pay indebtedness or receive property taxes
pursuant to Health and Safety Code Section 33670 after January 1, 2020, for the purposes
of the Ocean Park Redevelopment Project 1(b), Added Territory.
SECTION 2. Application. The limitations established in this Ordinance shall apply to
the Redevelopment Plan for the Ocean Park Redevelopment Project 1(b) and may only be
amended in the manner required and to the extent permitted by law.
SECTION 3. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
19
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
20
Attachment E
ATTACHMENT E
PROPOSED TIME LIMITS EXTENSIONS
SANTA MONICA REDEVELOPMENT AGENCY
REDEVELOPMENT PLANS SUMMARY
RECEIVING TAX INCREMENT
PROJECT INCURRING DEBT PLAN ACTIVITIES
and PAYING DEBT
AREA PLAN
Current Proposed Current Proposed Current Proposed
Ocean Park 1A
1/1/2004 No Change 1/1/2009 1/1/2010 1/1/2019 1/1/2020
Ocean Park 1B
1/1/2004 No Change 1/1/2009 1/1/2010 1/1/2019 1/1/2020
Downtown
1/1/2004 Elimination 1/1/2016 1/1/2017 1/13/2026 1/13/2027
Earthquake
6/21/2014 No Change 6/21/2024 6/21/2025 6/21/2039 6/21/2040
21