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HomeMy WebLinkAbout653ORDINANCE NO. 653 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IRWINDALE, CALIFORNIA DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE IRWINDALE COMMUNITY REDEVELOPMENT AGENCY WHEREAS, the City Council of the City of Irwindale ("City") approved and adopted the Nora Fraijo Redevelopment Project Area by Ordinance No. 272 of the City Council of City on January 10, 1974, as extended by Ordinance No. 578 of the City Council on December 16, 2003 and as amended from time to time ("Nora Fraijo Project Area"), which results in the allocation of taxes from the Nora Fraijo Project Area to the Irwindale Community Redevelopment Agency (the "Agency") for purposes of redevelopment; and WHEREAS, the City Council of the City adopted the Parque Del Norte Redevelopment Project Area on April 15, 1976 by Ordinance No. 299 of the City Council, as extended by Ordinance No. 578 and as amended from time to time (the "Parque Del Norte Project Area"), which results in the allocation of taxes from the Parque Del Norte Project Area to the Agency for purposes of redevelopment; and WHEREAS, the City Council of the City adopted the City Industrial Development Redevelopment Project Area on July 19, 1976 by Ordinance No. 302 of the City Council, as said plan has been amended from time to time (the "City Industrial Development Project Area" and, together with Nora Fraijo Project Area and Parque Del Norte Project Area, the "Project Areas"), which results in the allocation of taxes from the City Industrial Development Project Area to the Agency for purposes of redevelopment; and WHEREAS, the Agency is engaged in activities to execute and implement the Redevelopment Plan for the Project Areas ("Redevelopment Plans") pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) ("CRL"); and WHEREAS, since adoption of the Redevelopment Plans, the Agency has undertaken redevelopment projects in the Project Areas to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy; and WHEREAS, over the next few years, the Agency hopes to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Areas' economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure, to name a few; and Ordinance No. 653 Page 1 WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has recently enacted and the Governor has signed, companion bills AB X1 26 and AB X1 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WHEREAS, specifically, AB X1 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, AB X1 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agree by ordinance to remit specified annual amounts to the county auditor- controller; and WHEREAS, under the threat of dissolution pursuant to AB X1 26, and upon the contingencies and reservations set forth herein, the City shall make the Fiscal Year 2011- 2012 community remittance, currently set by the Department of Finance as Four Million Three Hundred Fourteen Thousand Five Hundred Ten Dollars ($4,314,510), as well as the subsequent annual community remittances as set forth in the CRL; and WHEREAS, the City reserves the right to appeal the California Director of Finance's determination of the Fiscal Year 2011-12 community remittance, as provided in Health and Safety Code Section 34194; and WHEREAS, City understands and believes that an action challenging the constitutionality of AB X1 26 and AB X1 27 will be filed on behalf of cities, counties and redevelopment agencies; and WHEREAS, while the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination that AB X1 26 and AB X1 27 are unconstitutional; and WHEREAS, the City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of AB X1 26 and AB X1 27; and WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment obligation of AB X1 26 and AB X1 27, the City shall not be obligated to make any community remittance for the duration of such injunction, restraint, or stay; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. Ordinance No. 653 Page 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IRWINDALE, CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Participation in the Alternative Voluntary Redevelopment Program. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall, to the extent required by law, comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by AB X1 27. Section 3. Payment Under Protest. Except as set forth in Section 4, below, the City Council hereby determines that the City shall make the community remittances set forth in Health and Safety Code Sections 34194, et seq. Section 4. Effect of Stay or Determination of Invalidity. The City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB X1 26 and/or AB X1 27 or determines that AB X1 26 and/or AB X1 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Any community remittance shall be made under protest and without prejudice to the City's right to recover such amount and interest thereon in the event that there is a final determination that AB X1 26 and/or AB X1 27 are unconstitutional. If there is a final determination that AB X1 26 and/or AB X1 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. This Ordinance shall not effect or give rise to any waiver of rights or remedies that the City may have, whether in law or in equity, to challenge AB X1 26 or AB X1 27. This Ordinance shall not be construed as the City's willing acceptance of, or concurrence with, either AB X1 26 or AB X1 27; nor does this Ordinance evidence any assertion or belief whatsoever on the part of the City that said bills are constitutional or lawful. Section 5. Implementation. The City Council hereby authorizes and directs the City Manager to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Los Angeles County Auditor-Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in AB X1 27. Ordinance No. 653 Page 3 Section 6. Additional Understandings and Intent. It is the understanding and intent of the City Council that the City will enter into an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax increment to the City in amounts not to exceed the annual community remittance payments to enable the City, directly or indirectly, to make the annual remittance payments. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets to make the remittance payments. The City reserves the right to withdraw from making the payments required by AB X1 27 should the amount of such payments (as will be determined by the State Department of Finance) prove to be in excess of the City's available funds not otherwise obligated for other uses. Section 7. Severability. 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 any 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 and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. Section 8. Certification; Publication. This ordinance shall take effect 30 days after its final passage, and within fifteen (15) days after its passage, the City Clerk shall cause it to be posted as required by law, and hereby designated for that purpose. Section 9. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption. PASSED, APPROVED, AND ADOPTED this 24 th day of August 2011. anuel Garcia, Mayor Ordinance No. 653 Page 4 ura M. Nieto, CMC eputy City Clerk a M. Nieto, CMC uty City Clerk ATTEST: } ss. ura M. Nieto, Deputy City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF IRWINDALE I, Laura M. Nieto, Deputy City Clerk of the City of Irwindale, do hereby certify that the foregoing Ordinance No. 653 was duly introduced at a regular meeting of the Irwindale City Council held on the 10 th day of August 2011, and was duly approved and adopted on second reading at its regular meeting held on the 24 th day of August 2011, by the following vote of the Council: AYES: Councilmembers: Breceda, Burrola, Fuentes, Ortiz, Mayor Garcia NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None AFFIDAVIT OF POSTING I, Laura M. Nieto, Deputy City Clerk, certify that I caused a copy of Ordinance No. 653, adopted by the City Council of the City of Irwindale at its regular meeting held August 24, 2011, to be posted at the City Hall, Library, and Pt Office on August 25, 2011. Dated: August 25, 2011 Ordinance No. 653 Page 5