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HomeMy WebLinkAboutORD 1347 ORDINANCE NO. 1347 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DETERMINING TO COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF BALDWIN PARK WHEREAS, on July 3, 1974, the City Council of the City of Baldwin Park (the "City") activated the Redevelopment Agency of the City of Baldwin Park by adoption of Ordinance No. 684 (the "Agency") and on July 21, 2004, deactivated the Agency and activated the Community Development Commission of the City of Baldwin Park ("Commission") by adoption of Ordinance No. 1239; and WHEREAS, the City has approved and adopted redevelopment plans ("Redevelopment Plan") for the West Ramona Boulevard, Puente-Merced, San Gabriel River, Central Business District, Delta, and Sierra Vista Redevelopment Project Areas covering certain properties within the City (the "Project Areas"); and WHEREAS, the Commission is engaged in activities to execute and implement the Redevelopment Plans pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq. and § 34100, et seq) ("CRL"); and WHEREAS, the Commission 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 Commission 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 WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has recently enacted, and the Governor has signed, companion bills AB1X 26 and AB1X 27, requiring that each redevelopment agency be dissolved, and each community development commission be stripped of its redevelopment powers and authority, unless the community that created it enacts an ordinance committing it to making certain payments; and Ordinance No. 1347 - Page 2 WHEREAS, specifically, AB1X 26 prohibits redevelopment agencies and community development commissions from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that redevelopment agencies are deemed to be dissolved, and community development commissions stripped of their redevelopment powers and authority, as of October 1, 2011; and WHEREAS, the Commission functions solely as the City's redevelopment agency making stripping it of its redevelopment powers and authority functionally the same as dissolving it; and WHEREAS, AB1X 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency or a community development commission within that community to remain in existence and continue to 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 to remit specified annual amounts to the county auditor-controller and adopt an ordinance stating it will remit such amounts; and WHEREAS, under the threat of dissolution of the Commission pursuant to AB1X 26, and upon the contingencies and reservations set forth herein, the City shall make the Fiscal Year 2011-2012 community remittance, currently estimated to be Two Million One Hundred Six Thousand Six Hundred Sixty-Nine Dollars ($2,106,669), 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, the City understands and believes that an action challenging the constitutionality of AB1X 26 and AB1X 27 has been filed by the California Redevelopment Association, the League of California Cities and others, on behalf of cities, counties, redevelopment agencies and community development commissions; 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 AB1X 26 and AB1X 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 AB1X 26 and AB1X 27; and Ordinance No. 1347- Page 3 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 provisions of AB1X 26 and AB1X 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. NOW, THEREFORE, the City Council of the City of Baldwin Park does hereby 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 or permitted by law, comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by AB1X 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 section 34194 et seq. SECTION 4. Effect of Stay or Determination of Invalidity. City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB1X 26 and AB1X 27 or determines that AB1X 26 and AB1X 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 AB1X 26 and AB1X 27 are unconstitutional. If there is a final determination that AB1X 26 and AB1X 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 ABX1 26 or ABX1 27. This Ordinance shall not be construed as the City's willing acceptance of, or concurrence with, either ABX1 26 or ABX1 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 Chief Executive Officer 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 Ordinance No. 1347- Page 4 comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in AB1 X 27. SECTION 6. Additional Understandings and Intent. It is the understanding and intent of the City Council that, following the effective date of this Ordinance,the City will enter into an agreement with the Commission as authorized pursuant to Section 34194.2, whereby the Commission will transfer 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 ABX1 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 provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. SECTION 8. Effective Date. This ordinance shall go into affect and be in full force and operation from and after thirty (30) days after its final reading and adoption. PASSED AND APPROVED ON THE 7th thy of Septemb- 2011 Ale. MAN, - ar 0, MAYOR ATTEST: j ALEJ' Ni- s AVILA, CITY CLERK Ordinance No. 1347- Page 5 STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) ss: CITY OF BALDWIN PARK I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on August 3, 2011. That there after said Ordinance No. 1347 was duly approved and adopted at a regular meeting of the City Council on September 7, 2011 by the following vote: AYES: COUNCILMEMBER: Monica Garcia, Susan Rubio, Ricardo Pacheco, Mayor Pro Tem Marlen Garcia, Mayor Manuel Lozano NOES: COUNCILMEMBER: None ABSENT: COUNCILMEMBER: None ABSTAIN: COUNCILMEMBER: None (IA-- ALEJANDP4A AVILA CITY CLERK