HomeMy WebLinkAboutMINUTES - 04221997 - C41 C • 41/
TO: BOARD OF StiPERVISORSo � O
f Contra
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR •'.-� Costa
Coun \�/,
DATE: April 17, 1997 1yL
J
A COU
SUBJECT: LEGISLATION: AB 1342 (NAPOLITANO)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in OPPOSITION to AB 1342 by Assemblywoman Grace
Napolitano, which would allow city redevelopment agencies to extend the life of a
redevelopment project, thereby breaching the agreement the city and other taxing
jurisdictions entered into originally and eliminating the return of the property tax
increment to the other taxing jurisdictions from whom it was originally removed,
including the County.
BACKGROUND:
Under existing law, a city redevelopment project is usually approved for a 30-year
period of time, at the end of which time, the project is ended and the property tax
increment which has been diverted to the redevelopment agency is returned to the
taxing agencies from which it was taken. In a period of 30 years, this increment has,
in most cases, grown tremendously to reflect the value of the improvements which
have been made, along with any changes in ownership which have occurred.
Assemblywoman Napolitano has introduced AB 1342 which, as introduced, would
allow a city council (acting as the governing body of the redevelopment agency) to
unilaterally extend the life of a redevelopment project for up to ten additional years.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):2h,
zd/�4. L L4ae � �
ACTION OF BOARD ON-- Affil 22, 1997 APPROVED AS RECOMMENDED X_ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT r AND CORRECT COPY OF AN ACTION TAKEN
AYES: _NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: ATTESTED April 22, 1997
See Page 2 PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88)
DEPUTY
The Director, GMEDA points out that this bill would allow city redevelopment
agencies to extend the life of projects which are about to expire, thereby depriving
the County and other taxing jurisdictions of significant amounts of badly needed
property tax revenue. As a result, he is recommending that the Board of Supervisors
oppose AB 2342 and this office joins in that recommendation.
cc: County Administrator
Director, GMEDA
Community Development Director
County Counsel
Auditor-Controller
Les Spahnn
Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
Casey Sparks Kaneko, Executive Director
Urban Counties Caucus
1100 K Street, Suite 101
Sacramento, CA 95814
Steve Szalay, Executive Director
California State Association of Counties
1100 K Street, Suite 101
Sacramento, CA 95814
-2-
CALIFORNIA LEGISLATURE-1997-98 REGULAR SESSION
ASS B ,Y BILA, No. 1342
Introduced by Assembly Member Napolitano
'i
February 28, 1997
An act to amend Sections 33333.6 and 33426:5 of the Health
and Safety Code, relating to redevelopment.
is
LEGISLATIVE COUNSEL'S DIGEST
AB 1342, as introduced, Napolitano. Redevelopment
plans:
(1) Existing law, effective January 1, 1994, and known as
the Community Redevelopment Law Reform Act of .1993,
Y revised the definition of a.* blighted area and enacted
>. numerous other revisions in the Community Redevelopment
Law, including the igiposition of specified time.limitations on
redevelopment plans,` the requirement of the .adoption of
implementation.plans describing the goals and objectives of
redevelopment agencies, and the inclusion of specified
information on statements of indebtedness required. to be
filed by redevelopment agencies. This act also provided:that
the limitations 'established in a redevelopment ordinance
pursuant to that act shall not be applied to limit allocation of
taxes .to an agency to the extent required to eliminate
specified: project. deficits or to implement a specified
replacement housing program,
This bill would, notwithstanding certain limitations
imposed.. by _that act, authorize the legislative body of a
redevelopment agency to extend the specified time
limitations under prescribed. circumstances. The ' bill also
99
AB 1342 — 2 —
would
2 —
would provide that the limitations established in a I
redevelopment ordinance pursuant to that act shall not be
applied to limit allocation of taxes to an agency to the extent
required to undertake or perform specified activities relating
to, among other things, affordable housing production
requirements, deposits of funds into its Low and Moderate'
Income Housing Fund, and financial assistance to school
districts.
(2) Under . existing law, the effectiveness of any
redevelopment plan adopted on or before December 31, 1993,
is required to terminate no later than 40 years after the
adoption of the.plan, or on January 1, 2009, whichever is later.
This bill would instead require the effectiveness of any such
redevelopment plan to terminate no later than 40 years after
the adoption of the plan, or on January 1, .2024, whichever is
later.
Existing law also specifies that the time limit that is required
to be adopted on the establishing of loans, advances, and
indebtedness to' finance any such redevelopment plan may
not exceed 20 years from the adoption of the redevelopment
plan or January 1, 2004, whichever,is later. .
This,bill would instead require that.the,time limit on the.
establishing. of loans, advances,.and indebtedness .to'.-finance
any such plan not exceed.January.1, 2014.
(3) Existing law permits a redevelopment .agency;.under
specified circumstances, to pay all or part of the.costs of land,
or the installation..and construction of'any structure or other
t3° improvement that is publicly owned within or without a
proj ect area.'This law prohibits an agency from providing any
form of direct. assistance to an automobile dealership .on A .
parcel. not previously . developed for , urban use, . .or a.
development on a parcel of 5 -acres or more .not previously
developed for urban use that would generate sales, and use
taxes, except as specified.
This bill would revise this prohibition to apply instead to-
automobile
oautomobile centers or complexes, as defined,, and would
clarify that nothing in those provisions would prohibit direct
assistance to a development on a parcel that contains less than
5 acres. The bill also would provide that these provisions shall
not be construed to prohibit redevelopment agency assistance
99
- 3 — AB 1342
to conversions of automobile dealerships, centers, or
complexes to other uses under specified conditions.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the ,State of California do enact as follows.
1
SECTION 1. Section 33333.6 of the Health and Safety
2 Code is amended to read:
? ` 3 33333.6. The limitations of this section sheA apply to
4 every redevelopment plan adopted on or before
5 December 31, 1993. .
6 (a) (1) The timel limit on the establishing of loans,
7 advances, and .indebtedness adopted pursuant to
8 paragraph (2) of subdivision (a) of Section 33333.2 or
9 paragraph (2) of subdivision (a) of Section 33333.4 shall
10 not exceed 28yeetr
sfieffi e klept4en of the
t 11 edema erJanuary 1, 2994;._,h:,.,ha islater- .
12 2014.This limit, however, shall not prevent agencies from
13 incurring debt to be paid from the Low and Moderate
14 Income Housing Fund_ or establishing more debt in order
15 to fulfill the agency's housing obligations under Section
16 .33413: This . limit shall not prevent agencies from
17 refinancing, refunding, or restructuring indebtedness
18 . after the time limit if the indebtedness is not increased
19 and the time during which the indebtedness is to be
20 repaid does not exceed the date 'on which the
. 21 indebtedness would have been paid. If the legislative
22. body:desires to extend the time limit for the establishing
F 23 . of loans, advances, and indebtedness contained in a
24 redevelopment plan adopted prior to Jan
uary 1, 1994, to
25_ a dine limit not to exceed the.time limit set forth in this
26. paragraph, the legislative body may amend the
a: 27 redevelopment plan by ordinance or before December
r.
} 28 31, 19
29 (2) The time limitation established by paragraph (1)
30 of this subdivision may be extended, only by amendment
31.` of the redevelopment plan, after the agency finds, based
'32 ' on substantial evidence that: (A) significant blight
33 remains within the project area; and- (B) this blight
1.: 99
AB 1342 — 4 —
I
4 -
1 cannot be eliminated without the establishment of
2 additional debt. However, this amended time limitation
3 may not exceed 10 years from the time limit established
4 pursuant to paragraph (1) of this subdivision or the time
5 limit on the effectiveness of the plan established pursuant
6 to subdivision (b), whichever is earlier.
7 (b) The effectiveness of every redevelopment plan to
8 which this section applies shall terminate at a date whie
9 sheR that does not exceed 40 years from the adoption of
. 10 . the redevelopment plan, or on January 1,. 2W9 2024,
11 whichever is later. After the time limit on the
12 effectiveness of the redevelopment plan, the agency shall
13 'have no authority to act pursuant to the redevelopment .
14 plan except to pay previously incurred_indebtedness and.
15 to enforce - existing covenants, contracts, or other
16 obligations. If the legislative body desires to extend the
17 date to which a. redevelopment plan, adopted prior to
18 January 1, 1994, is effective to a date not to. exceed the
19 date set�orth in this subdivision, the legislative body may
20 amend the redevelopment plan by ordinance. on :or
21 before December 31, 19
22. ..(c) .Except.as provided in.subdivisions (g) .and (h) a
23 redevelopment agency shall not ..pay indebtedness or
24receive property taxes pursuant to Section 33670 after 10
25 years from the. termination of-the. effectiveness of the
26 redevelopment.plan pursuant to subdivision (b) .
27 (d) . (1) If plans which had different dates of adoption
28 were merged on or before December 31, 1993,.the time
29 limitations required by this :section :shall .be counted
.30 .individually for each merged, plan from the date of the.
31 adoption of each plan. . If an amendment. to a
32 redevelopment plan.added territory to the project area
.33 on or before December 31, 1993, `the time limitations
34 required by this section shall commence, with respect to
35 the redevelopment:plan, from the date of.the adoption of.
36 . the redevelopment plan, and' with respect to' the added
37 territory, from , the date of the adoption of the
38 amendgnent.
39 (2) If plans that had different dates of.adoption are
40 merged on or after January 1, 1994,the time limitations
99
- 5 — AB 1342
1 required by this section shall be counted individually for
2 each merged plan from the date of the.adoption of each
z 3 plan.
5 , aftaar- � the
1VV , eefttains&K VS Y11S1Rd 4L °V11U �11 by
6 this &eetieft a-ftd ehr`'Time. .i,.-,r.:a a a-. fketerre
8 �vyietin1 by
y 10 plftn adep"py-jep to — 4-, ; e
11 e*is4ttg tie htft4 tlffit emeeeds the e
n,
12 4y tis seetien ey tom time lifftits tit
13 de tiet emeeed the .L !S.of sty +a-)-, 6T-
14
T14 {�}
15 -(-2-)- The limitations established in the erdinanee
16 acdepted 'ptirstternt to thifi seems this paragraph shall
17 apply to the redevelopment:plan as if the a e a e •e e..-M e t
r '18 per 1iee�� e these 1 upon
19 adoption of an ordinance of the legislative body.
20 However, in adopting the ordinance e � by .
`;A 21sem, neither the legislative body nor the .agency is.
22 required to comply with Article 12 (commencing with
23 Section.33450) or any other provision of this part relating
24. to the amendment of redevelopment plans and the
25 ; ordinance shall- not constitute a project within the
.
_26. meaning of Section 21000 of the Public Resources Code.
27. (f) +i- If a redevelopment plan adopted prior. to
28 January 1; 1994,contains one or more limitations-required
29 by this section; and the limitation does. not exceed the''
30 applicable time limit required by this.section, this section
31. shall not. be construed to require an amendment of this
32 limitation.
i 33 .�- -A wed pr- fie J*m �'
34 - ft .itetti6lft-s1efter that the t
t ( 35. in this seems be to est-end the ,
tix
?+ 36 �� the . � e.,+.al..l� ,l~,-,.a
t b�y glis
37 --"�- ,; ma t, to gee4eft 39a&,4-.6-. . e a_.,. n-t
I 38
-.shaR he s +& refer-end 0 ift &ee aft-
39 .39
99
AB 1342 — 6 —
I
6 -
1 (g) The limitations established in the any ordinance
2 adopted pursuant to this section shall not be applied to
3 limit allocation of taxes to an agency to the extent
4 required to undertake or perform any of the following
5 activities, and the procedure for amending the ordinance
6 pursuant to this subdivision to extend the limitations, as
7. necessary, to undertake or perform any of the following
8 activities, shall be!the same as for adopting the ordinance
- 9 under subdivision (e): 1
10 (1) . To eliminate project deficits created under
11 subdivision (e) of Section 33320.5, subdivision (g) of
12 Section 33334.6, or subdivision (d) of Section 33487, in
13 accordance with the plan adopted pursuant- thereto for
14 the purpose of eliminating the deficits or to implement a
15 replacement housing.program pursuant to Section 33413.
16 In the event of a conflict between these limitations.and
17 the obligations under Section 33334.6, or these limitations .
18 and the obligations, or to implement a replacement
19 housing program pursuant to Section .33413, .the I
20 legislative bodyshall amend the ordinance adopted
21 pursuant to this section to modify the limitations to. the >�
.22 - extent .necessary to permit compliance with the plan
23 adopted pursuant to subdivision (g) of Section 33334.6
24. and to allow full expenditure of moneys in the agency's
25 Low and Moderate Income Housing Fund in accordance
26. with Section 33334.3'or to permit implementation of the
.27 replacement.housing program pursuant to Section 33413.
28 The � t� ep ee pir� to
29 , .be the s'afne a+ ffw, adepting. the
30 miler
31. (2) To comply-with the affordable housingproduction
32requirements tion 33413, includingsubdi.visions (b)
33 and (c) thereof. In the event of a.conflict between those
34 requirements and the obligations under this section,-.the
35 legislative body shallamend the, ordinance adopted
36 pursuant to this section to modify the limitations to the
37 extent necessary to permit compliance with Section i
38 33413, including subdivisions (b) and (c) thereof. �
39 (3) To enable continued agency deposits into . the
40 agency s Lowy and Moderate Income Housing Fund in
99
— 7 — AB 1342
1 accordance with Sections 33334.2 through 33334 20,
2. inclusive, in order for the agency to assist the community
3 in meeting the community's affordable housing
4 requirements under Article . 10.6 (commencing with
5 Section 65580) of Chapter 3 of Division 1 of Title 7 ofthe
6 Government Code. In the event of a conflict between
7 th ose req uirem en ts an d thelimitations under this section,
8 the legislative body shall amend any ordinance adopted
9 pursuant *to this section to modify the limitations of the
10 ordinance to the extent necessary to.permit continued
11 agency deposits in the agency's Low and 'Moderate
12 Income Mousing Fund for the purposes set forth in this
13 paragraph.
14 (4) To enable agency financial assistance to school
15 districts and community college districts to-pay for all or
16 part of the value of the land for, and the cost .of the
17 installation and construction of, buildings,, facilities,
18 structures, and other improvements owned or to be
19 ' owned by such a district, upon adoption ofresolutions by
20 the agency. and a legislative body. Ending that. the
21 buildings, facilities, structures, and otherimprovements
22 are ofbenefit to the projectarea, an upon adoption by the.
23 school district or comm unity college district thatno other
24 reasonable means of financing the buildings, facilities,
25 structures, and other improvements are available to the
26 district other than with agency assistance. The Endings,
27 determinations, and procedures set forth inSection 33445
28 and Section 33679 shall not apply to the resolutions of the
29 agency and legislative body required by this paragraph.
30 (5) To enable the agency, pursuant to Article 12.5
31 (commencing with Section 33450), to undertake any
32 actions pertaining to hazardous substance release
33 cleanup that are approved,prior to the date of expira tion
34 of authority set forth in this section pursuant to Article
35 12.5
36 (6) To enable the agency to undertake any activities
37 authorized under Section 33445 that, prior to the date of
38 expiration of authority set forth in this section, are
39 approved by the agency and legislative bodypursuant to
99
AB 1.342 -
1 the requirements and procedures of Section 33445 and, if
2 applicable, Section 33679
3 (h) This section shall not be construed to affect the
4 validity of any bond, indebtedness, or other obligation,
5 including any mitigation agreement entered into
.6 pursuant to Section 33401, authorized by the legislative
7 body, or the agency pursuant to this part, prior to January
8 1, 1994. Nor shall this section be construed to affect the
9' right of an agency to.receive'property taxes, pursuant to
10 Section 33670, to pay the indebtedness or other
11 obligation:
12 (i) A redevelopment agency shall not pay
13 indebtedness' or receive property taxes pursuant to
14 Section 33670, with respect to a redevelopment plan
' 15 adopted prior to January 1, 1994, after the date.identified
16 in subdivision (c)- aT- the cite i4eiatified ift the
17 redevelopffient plan- whiehev,eTris earlier-, exeept fts
18 ift + of *:of in as that
19 date may be extended pursuant to subdivision (g) or
20 subdivision (h) .
21 The. Legislature finds and declares that the
22 amendments made"to this section by the act that adds this
23 subdivision are intended"to add limitations to the law on
24 and after January 1; 1994, and are not amended to change
25 or express legislative intent with respect to the law prior
26 to that date. lt is not the intent of the Legislature to affect
27 the merits of'any"litigation regarding the ability of a
28 redevelopment` agency to sell bonds for a term that
29 exceeds the limit of a redevelopment pian pursuant to law
30 thatexisted prior to January 1, 1994.
31 (k) If a. `redevelopment plan is. amended to add
.32 territory, the amendment shall contain the" time limits
33 required by Section 333332.
34 (Z)':` The- `Legislature finds and declares that `the .
35 amendrnents made to this section by the act that adds this
36 subdivision are intended to extend the time limitations
37 added to theta w by the act that added,subdivision. (j), and
38 are notintended to expresslegislativeinten t with respect
39. to the lady prior to January 1, 1994. Itis not�the intent of
40 the Legislature , to affect the merits of any` litigation
99
- 9 — AR 1342
1 if 1 regarding the ability of a redevelopment agency to sell
2 bonds for a term that exceeds the limit of a
:lie 3 redevelopment plan pursuant to law that existed prior.to
.3n, 4 January 1, 1994.
Ito 5 SEC. 2. Section 33426.5 of the Health and Safety Code
ive 6 is amended to read:
iry 7 .33426.5. Notwithstanding the provisions of Sections
:he 8 33391, 33430, 33433, and 33445, or any other provision of
to 9 this part, an agency shall not provide any form-of direct
ier 10 assistance to:
11 (a) An automobile ;whAehcenter or.
,ay 12 complex that willbe or is on a parcel or parcels of land no
to 13 portion of which has. tiet previously been developed for
[an 14 urban use,unless,prior to the effective date of the act that
ied 15 adds this section, the agency either owns the land or has
Vie. 16 entered into an enforceable agreement, for the purchase
as . 17 of the land or of an.interest in the land, including- but not
'gat. 18. . limited to, a lease or an agreement containing covenants .
or 19 affecting real property, that requires the land to, be
20 developed and used as an automobile center
he >, _ 21 or complex. For the purposes of this subdi vision, the term
:his 22 `automobile center or complex" shall mean a site that
on 23 contains, or that,will contain, as set forth in an adopted
ige 24 -land use plan, permit or approval;. -more .than one
25 automobile dealership:
ect 26 (b) '(1). A development that will be or is on a parcel of
f27 land of five acres or more no portion of which has ftet
hat 28previously been. developed for urban use and that will,
.aw 29 when developed, .generate sales or use tax-pursuant to _
30 Part_1.5 (commencing with Section 7200) of Division 2 of
ida 31 the. Revenue and Taxation Code,. unless. the principal
lits 32 permitted use of the development is office, hotel,.
3.3. manufacturing; or industrial, or unless,. prior to - the.
rhe 34 effee=ive date of t-he seet :january 1,
' is 35 1994, the .agency either ewns owned the land or has
ins 36 entered into.an enforceable agreement, for'the purchase
wd . 37 of the land'or of-an,interest in the land, including, but not
ect 38 limited to, a lease or an agreement containing covenants
t of 39 ..affecting real property,. that requires the land to be
-ion s� - ; 40 developed.Nothingin thisparagraph.shallprohibit direct
99 99
AB 1342 _ 10 —
I
10 -
1 assistance to a development that will be or is on a parcel
2 of land of less than five acres, if otherwise permitted by
3 this chapter.
4 (2) For the purposes of this subdivision, a parcel. shall
5 include land on an adjacent or nearby`parcel on which a
6 use exists that is necessary for the legal development of
7 the parcel.
8 (c) A. development or business, either directly or
9 indirectly, for the acquisition, construction,
10 . improvement, rehabilitation, or replacement of property
11 that is or would be used for gambling or gaming ,of any
12 kind whatsoever including, but not limited to, casinos,
13 gaming clubs, bingo operations, or. any facility wherein
14 banked or percentage . games, any form of. gambling
15 device, or lotteries, other ' than the California State
16 Lottery, are or will be played.
17 (d) The prohibition in subdivision (c) is not,intended
18 to prohibit a redevelopment agency from acquiring
19 property on or in which an existing gambling enterprise
20 is located, for the purpose of selling or leasing the
21 property for uses other than gambling, provided that the
22 agency acquires the property for fair.market value.
23. (e) :'Phis .section. shall not 'be. construed to apply to
24 agency : assistance in the construction . of public
25 improvements that serve all or a portion of a project area
26 and that are not required.to.be constructed as a condition
27 of approval of a development described in subdivision
28 (a),, (b), . or (c), or to prohibit assistance in the
29 construction of public, improvements .that .are . being
30 constructed for. a-development that is not described in
31 subdivision' (a), (b)., or (c) .
32 (f) This section shall not be construed to prohibit
33 agency assistance to convert a parcel or parcels of
'34 improved or unimproved land from an. automobile
35 dealership or :.automobile center or complex use to
.36 another use if, prior to the effective date of the act that
37 adds this subdi vision either (1) the agency owns the land,
38 tor (2) the agency entered into an enforceable agreement
39 for the,purchase of the land or of an interest in the land,
40. including, but not limited to, a lease or an agreement
99
- 11 AB 1342
Wce1 : 1 containing covenants affecting real property,, that
d by 2 .required the land to be developed as an automobile
3 dealership 'Or.automobile center or complex, and. the
shall 4 enforceable agreement was in effect as of the effective
ch-a 5-; :date of the act that added this.subdivision.
Zt of 6 (g) As used.in this.section, the term "urban useshall
7 mclude'.infrastructure improvements, including but not
v or - 8 limited to,roads,curbs,gutters; utilities, and storm draM*s.
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