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HomeMy WebLinkAboutMINUTES - 08162011 - SD.5RECOMMENDATION(S): 1. APPROVE Resolution No. 2011/340 to accept the designation, and to declare its intent, to serve as the "successor agency" for the Contra Costa County Redevelopment Agency (the "Agency") in accordance with Health & Safety Code Section 34171(j) and Health & Safety Code Section 34173, and to retain the housing assets and functions previously performed by the Agency in accordance with Health & Safety Code Section 34176, should the County determine that the Agency will be dissolved; 2. AUTHORIZE the County Administrator, or the County Administrator's designee, to file a copy of this resolution with the County Auditor-Controller in accordance with Part 1.85 of the California Community Redevelopment Law (constituting Part 1 of Division 24 of the California Health and Safety Code); and 3. AUTHORIZE the County Administrator, or the County Administrator's designee, to take such additional actions, and to execute all documents necessary and appropriate, for the County to obtain the housing assets of the Agency pursuant to Section 34176 of the Redevelopment Law (as added by Part 1.85). APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/16/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes:See Addendum VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Steven Goetz (925) 335-1240 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 16, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD. 5 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:August 16, 2011 Contra Costa County Subject:Designation of the Successor Agency of the Contra Costa County Redevelopment Agency and Related Matters FISCAL IMPACT: None to the General Fund at this time. The resolution declares the County's intent to become the successor agency to the Redevelopment Agency, should the Board elect not to adopt an ordinance to participate in the State's alternative voluntary redevelopment program before October 1. The Finance Committee will be evaluating the fiscal impact of dissolving the Agency and will report to the Board on such impacts in September. BACKGROUND: Pursuant to the California Community Redevelopment Law (constituting Part 1 of Division 24 of the California Health and Safety Code, the "Redevelopment Law"), Contra Costa County (the "County") has adopted Redevelopment Plans for five project areas in the unincorporated area and established the Contra Costa County Redevelopment Agency (the "Agency") to implement these plans. Assembly Bill x1 26 (the "Dissolution Act") and Assembly Bill x1 27 (the "Voluntary Program Act") have been enacted to significantly modify the Redevelopment Law. The Dissolution Act, through the addition of Part 1.8 to the Redevelopment Law, has suspended all new redevelopment activities and incurrence of indebtedness as of its effective date, and through the addition of Part 1.85 to the Redevelopment Law ("Part 1.85"), will dissolve redevelopment agencies on October 1, 2011. Under the Voluntary Program Act, through the addition of Part 1.9 to the Redevelopment Law, the Agency can avoid dissolution under the Dissolution Act if the County elects to opt into an alternative voluntary redevelopment program requiring specified annual remittances to local school and special districts. The County and the Agency are considering whether to opt into the alternative voluntary redevelopment program under the Voluntary Program Act, or to have the Agency be dissolved pursuant to the Dissolution Act. On July 12, the Board referred this matter to the Finance Committee, who will report to the Board in September. Redevelopment Law provides that the County, having authorized the creation of the Agency, shall be the "successor agency" to the Agency should the Agency be dissolved pursuant to the Dissolution Act. The County, may also elect to retain the housing assets and functions previously performed by the Agency. The law further provides that if the County does not wish to serve as the successor agency, it must inform the County Auditor-Controller by September 1. The determination of the first local agency that elects to become the successor agency shall be made by the County Auditor-Controller based on the earliest receipt by the County Auditor-Controller of a copy of a duly adopted resolution of the local agency’s governing board authorizing such an election. “Local agency” means any city, county, city and county, or special district in the county of the former redevelopment agency. Having a non-County entity designated as the successor agency for the former redevelopment agency may pose some risks to the County. A successor agency must, among other things, liquidate all assets of the agency and ensure future payments of enforceable obligations (including debt service payment). The County’s interest may not be well served if another entity became the successor agency and assumed responsibility for selling properties in the former project areas and for paying off bonds issued by the Contra Costa Public Finance Authority. To eliminate this risk, Department of Conservation and Development staff recommends that the Board declare its intent to serve as the successor agency should the County determine sometime next month that the redevelopment agency will be dissolved. Similarly, the County may elect to assume the former redevelopment agency’s housing functions and take over the non-cash housing assets of the Agency, along with related rights, powers, liabilities, duties and obligations. If the County does not elect to assume these functions, such housing functions and all related non-cash assets would be transferred to the County Housing Authority or the State Department of Housing and Community Development. The primary function of the Agency has been to implement the County’s affordable housing policies. The Department recommends the Board maintain control of the Agency’s housing functions and assets if it declines to continue the Agency under the voluntary program. CONSEQUENCE OF NEGATIVE ACTION: There is the possibility that the County Auditor-Controller could designate another local agency as the successor agency if the County does not declare its intent to be the successor agency by September 1. CHILDREN'S IMPACT STATEMENT: Not applicable. CLERK'S ADDENDUM By unanimous vote, the Board accepted new material into the record consisting of revisions to Resolution No. 2011/340 (the revisions have been incorporated), and ADOPTED the recommendations as presented. ATTACHMENTS Resolution No. 2011/340