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SR-414-003 (12) e .- ~CitYOf Santa Monica@ City Council Report City Council and Redevelopment Agency Joint Meeting: June 27,2006 Agenda Item: 1- P To: Mayor and City Council Chairperson and Redevelopment Agency From: Jeff Mathieu, Director Resource Management Department Subject: Four Ordinances to Extend Plan Limits of the Earthquake Recovery, Downtown, Ocean Park 1 A and Ocean Park 1B Redevelopment Project Areas as Authorized by Senate Bill 1096. Recommended Action It is recommended that: 1) The Redevelopment Agency Board ("Agency") request the City Council to introduce four ordinances extending the Plan effectiveness dates and the debt repayment and receipt of tax increment dates by two years for the Earthquake Recovery, Downtown, Ocean Park 1A and Ocean Park 1B Redevelopment Project Areas in accordance with Senate Bill 1096 ("SB 1 096"). [Health & Safety Code ~33333.2 (d)(4) and 33333.6(e)(2)(D)]; and 2) The City Council introduce for first reading the attached ordinances for the Agency's four redevelopment project areas extending the plan limits as described herein for the Earthquake Recovery, Downtown, Ocean Park 1A, and Ocean Park 1B Redevelopment Project Areas. 1 Executive Summary In 1992, the State Legislature for the first time enacted Educational Revenue Augmentation Funds ("ERAF") to reduce the State's obligations to fund education and reduce a portion of the State's budget shortfall. ERAF reallocates a portion of property tax revenues due local governments (counties, cities, special districts, and redevelopment agencies) to fund education, thereby reducing the State General Fund allocations to school districts. As a component of the FY 2004-2005 State budget, the Legislature adopted SB 1096, which required every redevelopment agency to make an ERAF payment to the County Auditor for the 2004-2005 and 2005-2006 Fiscal Years. In an effort to offset the financial burden caused by the ERAF payments, SB 1096 authorizes redevelopment agencies to amend their redevelopment plans to extend the time limits of effectiveness of their plans and to extend the dates for debt repayment and receipt of tax increment. Under SB 1096, redevelopment agencies may amend their redevelopment plans, depending upon the time remaining in the lives of these plans, by one year if the agency was required to make an ERAF payment for FY 04-05 and an additional year if the agency was required to make an ERAF payment for FY 05-06. Since all four of the Agency's Redevelopment Project Areas meet SB 1096 requirements, City Council is authorized to extend the Plan effectiveness date, and the debt repayment and receipt of tax increment dates for the Ocean Park 1A and 1 B, Downtown and Earthquake Recovery Plans by two years. 2 Discussion Analvsis In order to qualify for the extensions, in addition to making the required ERAF payments and meeting certain public hearing notice requirements, the legislative body must make certain findings. For redevelopment plans with 10 years or fewer remaining on plan effectiveness (Ocean Park 1A & 1 B), only one finding must be made. That finding is that the funds used to make the ERAF payment would otherwise have been used to pay the costs of the projects and activities necessary to carry out the goals and objectives of the redevelopment plan. For redevelopment plans with 10 years to 20 years remaining on plan effectiveness (Downtown and Earthquake Recovery), the legislative body must make the following findings: 1. Funds used to make the ERAF payments would otherwise have been used to pay the costs of the projects and activities necessary to carry out the goals and objectives of the redevelopment plan; 2. The Agency is in compliance with statutory Housing Fund requirements; 3. The Agency has an adopted Five-Year Implementation Plan; 4. The Agency is in compliance with applicable inclusionary and replacement housing production requirements; and 5. The Agency is not subject to sanctions for Housing Fund excess surplus. The City Council is required to hold a public hearing before adopting the ordinances. Notice of the hearing must be mailed to affected taxing entities at least 30 days prior to the hearing and must be published in a local newspaper at least 10 days prior to the hearing. 3 Since the Agency remitted ERAF payments totaling $3,413,292.39 for FY 2004-05 and $2,941,553.59 for FY 2005-06 and because all four of the Agency's Redevelopment Plans satisfy the SB 1096 requirements and notice of the public hearing has been given, the time limits for plan effectiveness and the time limit to repay indebtedness and receive tax increment for each plan may be extended by an additional two years. The following table summarizes the proposed extensions: RECEIVING TAX PROJECT INCURRING DEBT PLAN ACTIVITIES INCREMENT and PAYING AREA PLAN DEBT Current Current Pro osed Current Pro osed Ocean Park 1A 01/01/2004 01/01/2010 01/01/2012 01/01/2020 01/01/2022 Ocean Park 1 B 01/01/2004 01/01/2010 01/01/2012 01/01/2020 01/01/2022 No Time Downtown Limit' No Chan e 01/01/2017 01/13/2019 01/13/2027 01/13/2029 Earthquake 06/21/2014 No Chan e 06/21/2025 06/21/2027 06/21/2040 06/21/2042 'The time limit to incur debt was eliminated per Ordinance 2107, adopted on 1/13/04. Previous Council Actions In 2003, the Legislature passed a similar bill known as SB 1045 which authorized redevelopment agencies to amend their redevelopment plans to extend the effectiveness dates of the plans by one year for payment of the 2003-2004 Fiscal Year ERAF payment. Pursuant to SB 1045, the City Council adopted Ordinances (Nos. 2108,2109,2110 and 2111), on January 13, 2004, to extend the plan effectiveness dates, and the dates for debt repayment and receipt of tax increment dates by one year for the Earthquake Recovery, Downtown, Ocean Park 1A and Ocean Park 1B Project Areas. 4 Budget/Financial Impact Extensions of the current time limits for each of the Project Areas by two years as described herein will allow two additional years of tax increment to be collected and to be utilized for repayment of debt, to offset the financial impact of the ERAF payments required by SB 1096. The ability to leverage this tax increment furthers the Agency's ability to finance redevelopment projects. Prepared by: Tina Rodriguez, Redevelopment Administrator Approved: Forwarded to Council: J~ Attachment A: Ordinance for Earthquake Recovery Project Area Attachment B: Ordinance for Downtown Project Area Attachment C: Ordinance for Ocean Park 1A Attachment D: Ordinance for Ocean Park 1 B 5 ORDINANCE NO. (CCS) (CITY COUNCIL SERIES) AN ORDINANCE OF THE CITY OF SANTA MONICA, CALIFORNIA, AMENDING THE REDEVELOPMENT PLAN FOR THE OCEAN PARK (1 B) PROJECT TO EXTEND CERTAIN TIME LIMITS WHEREAS, the Redevelopment Plan ("Redevelopment Plan") for the Ocean Park (1 B) Redevelopment Project ("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, pursuant to provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Santa Monica ("Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan; and WHEREAS, Health and Safety Code Section 33333.6 applies only to redevelopment plans adopted on or before December 31, 1993; and WHEREAS, the Redevelopment Plan for the Original Project Area and Added Territory was adopted on or before December 31,1993; and 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 in the Original Project Area and the Added Territory as extended by Ordinance No. 2111 adopted by the City Council on January 13, 2004; 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 in the Original Project Area and the Added Territory as extended by Ordinance No. 2111 adopted by the City Council on January 13, 2004; and WHEREAS, the California Legislature has enacted SB 1096, making various amendments to the Community Redevelopment Law, which was chaptered as Chapter 211 and became effective on August 5,2004; and WHEREAS, Health and Safety Code Section 33333.6(e)(2)(D) and 33333.6(e)(3), as added by SB 1096, provide that when the Agency is required pursuant to Health and Safety Code Section 33681.12 to make a payment to the Los Angeles County Auditor-Controller ("County Auditor") for deposit into the Los Angeles 1 County's ("County") Educational Revenue Augmentation Fund ("ERAF"), the legislative body of the City may amend by ordinance 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 (1) year for each year in which a payment is made, without the necessity of compliance with Health and Safety Code Section 33354.6, Article 12 (commencing with Health and Safety Code Section 33450), or any other provision of the Community Redevelopment Law relating to the amendment of redevelopment plans; and WHEREAS, the Redevelopment Plan contains a time limit for effectiveness that is ten (10) years or fewer from both June 30, 2005 and June 30, 2006, so that under Health and Safety Code Section 33333.6(e)(2)(0), the Redevelopment Plan may be amended to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes; and WHEREAS, because Health and Safety Code Section 33681.12 required the Agency to make certain payments in Fiscal Year 2004-2005 and Fiscal Year 2005-2006 to the County Auditor for deposit into the County's ERAF, Health and Safety Code Section 33333.6(e)(2)(0), authorizes the City Council to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes by one (1) year for each year a payment is made; and WHEREAS, the Agency and City Council desire to extend by two (2) years the time limit on the effectiveness of the Redevelopment Plan for the Original Project Area and Added Territory and extend by two (2) years the time limit for paying indebtedness and receiving property taxes for the Original Project Area and Added Territory; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have been met. NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as follows: SECTION 1. FindinQs. The City Council hereby finds and determines that with respect to the Original Project Area and Added Territory: A. During each of Fiscal Year 2004-2005 and Fiscal Year 2005-2006, the Agency, prior to May 10 of that fiscal year, remitted for deposit in the County's ERAF the amount required by Health and Safety Code Section 33681.12; B. Funds used to make the payment to the County's ERAF pursuant to Health and Safety Code Section 33681.12 would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; 2 SECTION 2. Amendment of Time Limits. In accordance with Health and Safety Code Section 33333.6(e)(2)(D), and not withstanding 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) Oriqinal Proiect Area. 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 fifty-one (51) years from the date of adoption of the Redevelopment Plan, or January 1, 2012. (2) Added Territory. 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 fifty-one (51) years from the date of adoption of the Redevelopment Plan, or January 1,2012. B. Repavment of Indebtedness; Receipt of Property Taxes. (1) Oriqinal Proiect Area. 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 sixty-one (61) years from the date of the adoption of the Redevelopment Plan, or January 1,2022. (2) Added Territory. 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 sixty-one (61) years from the date of the adoption of the Redevelopment Plan, or January 1, 2022. SECTION 3. Application. The limitations established in this Ordinance shall apply to the Redevelopment Plan for the Ocean Park (1 B) Redevelopment Project and may only be amended in the manner required and to the extent permitted by law. SECTION 4. 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 the extend necessary to effect the provisions of this Ordinance. 3 SECTION 5. 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. SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City 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 after its adoption. APPROVED AS TO FORM: 4 ORDINANCE NO. (CCS) (CITY COUNCIL SERIES) AN ORDINANCE OF THE CITY OF SANTA MONICA, CALIFORNIA, AMENDING THE REDEVELOPMENT PLAN FOR OCEAN PARK (1A) REDEVELOPMENT PROJECT TO EXTEND CERTAIN TIME LIMITS WHEREAS, the Redevelopment Plan ("Redevelopment Plan") for the Ocean Park (1A) Redevelopment Project ("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, pursuant to provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 ef seq.), the Redevelopment Agency of the City of Santa Monica ("Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan; and WHEREAS, Health and Safety Code Section 33333.6 applies only to redevelopment plans adopted on or before December 31, 1993; and WHEREAS, the Project Area was adopted on or before December 31, 1993; and 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 as extended by Ordinance No. 2110 adopted by the City Council on January 13, 2004; 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 as extended by Ordinance No. 2110 adopted by the City Council on January 13, 2004; and WHEREAS, the California Legislature has enacted SB 1096, making various amendments to the Community Redevelopment Law, which was chaptered as Chapter 211 and became effective on August 5, 2004; and WHEREAS, Health and Safety Code Section 33333.6(e)(2)(D) and 33333.6(e)(3), as added by SB 1096, provide that when the Agency is required pu rsuant to Health and Safety Code Section 33681 .12 to make a payment to the Los Angeles County Auditor-Controller ("County Auditor") for deposit into the Los Angeles County's ("County") Educational Revenue Augmentation Fund ("ERAF"), the legislative body of the City may amend by ordinance 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 (1) year for each year in which a payment is made, without the necessity of compliance with Health and Safety Code Section 33354.6, Article 12 1 (commencing with Health and Safety Code Section 33450), or any other provision of the Community Redevelopment Law relating to the amendment of redevelopment plans; and WHEREAS, the Redevelopment Plan contains a time limit for effectiveness for the Project Area that is ten (10) years or fewer from both June 30, 2005 and June 30, 2006, so that under Health and Safety Code Section 33333.6(e)(2)(0), the Redevelopment Plan may be amended to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes; and WHEREAS, because Health and Safety Code Section 33681.12 required the Agency to make certain payments in Fiscal Year 2004-2005 and Fiscal Year 2005-2006 to the County Auditor for deposit into the County's ERAF, Health and Safety Code Section 33333.6(e)(2)(0), authorizes the City Council to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes by one (1) year for each year a payment is made; and WHEREAS, the Agency and City Council desire to extend by two (2) years the time limit on the effectiveness of the Redevelopment Plan for the Project Area and extend by two (2) years the time limit for paying indebtedness and receiving property taxes for the Project Area; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have been met. NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as follows: SECTION 1. Findinqs. The City Council hereby finds and determines that with respect to the Project Area : A. During each of Fiscal Year 2004-2005 and Fiscal Year 2005-2006, the Agency, prior to May 10 of that fiscal year, remitted for deposit in the County's ERAF the amount required by Health and Safety Code Section 33681.12; B. Funds used to make the payment to the County's ERAF pursuant to Health and Safety Code Section 33681.12 would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; SECTION 2. Amendment of Time Limits. In accordance with Health and Safety Code Section 33333.6(e)(2)(0), and not withstanding 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: 2 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 fifty-two (52) years from the date of adoption of the Redevelopment Plan, or January 1,2012. 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 sixty-two (62) years from the date of the adoption of the Redevelopment Plan, or January 1,2022. SECTION 3. Application. The limitations established in this Ordinance shall apply to the Redevelopment Plan for the Ocean Park (1A) Redevelopment Project and may only be amended in the manner required and to the extent permitted by law. SECTION 4. 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 the extend necessary to effect the provisions of this Ordinance. SECTION 5. 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. SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City 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 after its adoption. 3 ORDINANCE NO. (CCS) (CITY COUNCIL SERIES) AN ORDINANCE OF THE CITY OF SANTA MONICA, CALIFORNIA, AMENDING THE REDEVELOPMENT PLAN FOR THE EARTHQUAKE RECOVERY REDEVELOPMENT PROJECT TO EXTEND CERTAIN TIME LIMITS WHEREAS, the Redevelopment Plan ("Redevelopment Plan") for the Earthquake Recovery 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, pursuant to provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Santa Monica ("Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan; and WHEREAS, Health and Safety Code Section 33333.2 applies only to redevelopment plans adopted on or after January 1, 1994; and WHEREAS, the Project Area was adopted on or after January 1, 1994; and 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 as extended by Ordinance No. 2108 adopted by the City Council on January 13, 2004; 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 as extended by Ordinance No. 2108 adopted by the City Council on January 13, 2004; and WHEREAS, the California Legislature has enacted SB 1096, making various amendments to the Community Redevelopment Law, which was chaptered as Chapter 211 and became effective on August 5,2004; and WHEREAS, Health and Safety Code Section 33333.2(d) and 33333.2(d)(4), as added by SB 1096, provide that when the Agency is required pursuant to Health and Safety Code Section 33681.12 to make a payment to the Los Angeles County Auditor- Controller ("County Auditor") for deposit into the Los Angeles County's ("County") Educational Revenue Augmentation Fund ("ERAF"), the legislative body of the City may amend by ordinance 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 (1) year for each year in which a payment is made, without the necessity of compliance with Health and Safety Code Section 33354.6, Article 12 (commencing with 1 Health and Safety Code Section 33450), or any other provision of the Community Redevelopment Law relating to the amendment of redevelopment plans; and WHEREAS, the Redevelopment Plan contains a time limit for effectiveness for the Project Area that is more than ten (10) years but fewer than twenty (20) years from both June 30, 2005 and June 30, 2006, so that under Health and Safety Code Section 33333.2(d)(2), the Redevelopment Plan may be amended to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes; and WHEREAS, because Health and Safety Code Section 33681.12 required the Agency to make certain payments in Fiscal Year 2004-2005 and Fiscal Year 2005-2006 to the County Auditor for deposit into the County's ERAF, Health and Safety Code Section 33333.2(d), authorizes the City Council to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes by one (1) year for each year a payment is made; and WHEREAS, the Agency and City Council desire to extend by two (2) years the time limit on the effectiveness of the Redevelopment Plan for the Project Area and extend by two (2) years the time limit for paying indebtedness and receiving property taxes for the Project Area; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have been met. NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as follows: SECTION 1. Findinqs. The City Council hereby finds and determines that with respect to the Project Area: A. During each of Fiscal Year 2004-2005 and Fiscal Year 2005-2006, the Agency, prior to May 10 of that fiscal year, remitted for deposit in the County's ERAF the amount required by Health and Safety Code Section 33681.12; B. Funds used to make the payment to the County's ERAF pursuant to Health and Safety Code Section 33681.12 would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; C. The Agency is in compliance with the requirements of Health and Safety Code Section 33334.2 or 33334.6, as applicable; 2 D. The Agency has adopted an implementation plan in accordance with the requirements of Health and Safety Code Section 33490; E. The Agency is in compliance with subdivisions (a) and (b) of Health and Safety Code Section 33413, to the extent applicable; F. The Agency is not subject to sanctions pursuant to subdivision (e) of Health and Safety Code Section 33334.12 for failure to expend, encumber, or disburse excess surplus. SECTION 2. Amendment of Time Limits. In accordance with Health and Safety Code Section 33333.2(d), and not withstanding 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. 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-three (33) years from the date of adoption of the Redevelopment Plan, or June 21,2027. 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-eight (48) years from the date of the adoption of the Redevelopment Plan, or June 21,2042. SECTION 3. Application. The limitations established in this Ordinance shall apply to the Redevelopment Plan for the Earthquake Recovery Redevelopment Project and may only be amended in the manner required and to the extent permitted by law. SECTION 4. 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 the extend necessary to effect the provisions of this Ordinance. SECTION 5. 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. 3 SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City 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 after its adoption. APPROVED AS TO FORM: 4 ORDINANCE NO. (CCS) .(CITY COUNCIL SERIES) AN ORDINANCE OF THE CITY OF SANTA MONICA, CALIFORNIA, 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, pursuant to provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Santa Monica ("Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan; and WHEREAS, Health and Safety Code Section 33333.6 applies only to redevelopment plans adopted on or before December 31, 1993; and WHEREAS, the Project Area was adopted on or before December 31, 1993; and 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 as extended by Ordinance No. 2109 adopted by the City Council on January 13, 2004; 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 as extended by Ordinance No. 2109 adopted by the City Council on January 13, 2004; and WHEREAS, the California Legislature has enacted SB 1096, making various amendments to the Community Redevelopment Law, which was chaptered as Chapter 211 and became effective on August 5,2004; and WHEREAS, Health and Safety Code Section 33333.6(e)(2)(D) and 33333.6(e)(3), as added by SB 1096, provide that when the Agency is required pursuant to Health and Safety Code Section 33681.12 to make a payment to the Los Angeles County Auditor-Controller ("County Auditor") for deposit into the Los Angeles County's ("County") Educational Revenue Augmentation Fund ("ERAF"), the legislative body of the City may amend by ordinance 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 (1) year for each year in which a payment is made, without the necessity of compliance with Health and Safety Code Section 33354.6, Article 12 1 (commencing with Health and Safety Code Section 33450), or any other provision of the Community Redevelopment Law relating to the amendment of redevelopment plans; and WHEREAS, the Redevelopment Plan contains a time limit for effectiveness for the Project Area that is more than ten (10) years but fewer than twenty (20) years from both June 30, 2005 and June 30, 2006, so that under Health and Safety Code Section 33333.6(e)(2)(0), the Redevelopment Plan may be amended to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes; and WHEREAS, because Health and Safety Code Section 33681.12 required the Agency to make certain payments in Fiscal Year 2004-2005 and Fiscal Year 2005-2006 to the County Auditor for deposit into the County's ERAF, Health and Safety Code Section 33333.6(e)(2)(0), authorizes the City Council to extend the time limit for effectiveness and the time limit for payment of indebtedness and receipt of property taxes by one (1) year for each year a payment is made; and WHEREAS, the Agency and City Council desire to extend by two (2) years the time limit on the effectiveness of the Redevelopment Plan for the Project Area and extend by two (2) years the time limit for paying indebtedness and receiving property taxes for the Project Area; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have been met. NOW, THEREFORE, the City Council of the City of Santa Monica does ordain as follows: SECTION 1. Findinqs. The City Council hereby finds and determines that with respect to the Project Area: A. During each of Fiscal Year 2004-2005 and Fiscal Year 2005-2006, the Agency, prior to May 10 of that fiscal year, remitted for deposit in the County's ERAF the amount required by Health and Safety Code Section 33681.12; B. Funds used to make the payment to the County's ERAF pursuant to Health and Safety Code Section 33681.12 would otherwise have been used to pay the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; C. The Agency is in compliance with the requirements of Health and Safety Code Section 33334.2 or 33334.6, as applicable; 2 D. The Agency has adopted an implementation plan in accordance with the requirements of Health and Safety Code Section 33490; E. The Agency is in compliance with subdivisions (a) and (b) of Health and Safety Code Section 33413, to the extent applicable; F. The Agency is not subject to sanctions pursuant to subdivision (e) of Health and Safety Code Section 33334.12 for failure to expend, encumber, or disburse excess surplus. SECTION 2. Amendment of Time Limits. In accordance with Health and Safety Code Section 33333.6(e)(2)(0), and not withstanding 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. 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 forty-three (43) years from the date of adoption of the Redevelopment Plan, or January 13, 2019. 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 fifty-three (53) years from the date of the adoption of the Redevelopment Plan, or January 13, 2029. SECTION 3. 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 4. 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 the extend necessary to effect the provisions of this Ordinance. SECTION 5. 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. 3 SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City 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 after its adoption. APPROVED AS TO FORM: 4