CC Resolution 2012-053RESOLUTION NO. 2012 - 053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA AUTHORIZING THE
PROCESSING OF DOCUMENTATION CONFIRMING ITS
OWNERSHIP OF CERTAIN NON -HOUSING PROPERTIES
AND CONDITIONALLY AUTHORIZING PROCESSING OF
DOCUMENTATION TO REVERSE CERTAIN PURCHASE
AND SALE TRANSACTIONS
WHEREAS, the City Council of the City of La Quinta ("City Council" or "City,"
as applicable) approved and adopted (i) the Redevelopment Plan for La Quinta Project
Area No. 1 ("Project Area No. 1 " or "Project Area No. 1 Redevelopment .Plan," as
applicable) on November 29, 1983, by Ordinance No. 43, as amended on December
20, 1994, by Ordinance No. 258, on August 19, 2003, by Ordinance No. 388, and on
March 16, 2004, by Ordinance No. 402; and (ii) the Redevelopment Plan for La Quinta
Redevelopment Project Area No. 2 ("Project Area No. 2" or "Project Area No. 2
Redevelopment Plan," as applicable) on May 16, 1989, by Ordinance No. 139, as
amended on December 20, 1994, by Ordinance No. 259, on February 3, 2004, by
Ordinance No. 399, on March 16, 2004, by Ordinance No. 403, and on March 16,
2004, by Ordinance No. 404; and
WHEREAS, the former La Quinta Redevelopment Agency ("Agency") was
engaged in activities to execute and implement the Project Area No. 1
Redevelopment Plan and the Project Area No. 2 Redevelopment Plan (collectively,
the "Redevelopment Plans") pursuant to the provisions of the California Community
Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, ABx1 26 ("AB 26") requiring that
each redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of AB 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld AB 26; and
WHEREAS, the Agency was responsible for the administration of
redevelopment activities within the City; and
Resolution No. 2012-053
Non -Housing Agency/City Real Property Transactions
Adopted: October 2, 2012
Page 2
WHEREAS, Section 33220 of the CRL provides that certain public bodies
may aid and cooperate in the planning, undertaking, construction or operation of
redevelopment projects; and.
WHEREAS, pursuant to such authority, the City and the Agency worked
cooperatively to implement redevelopment projects and to provide funding
necessary to effectuate the completion of redevelopment projects; and
WHEREAS, pursuant to this cooperative effort, numerous public use
properties were acquired, developed, and/or prepared for development as publically
owned City facilities available for public use, a list of which is attached hereto as
Exhibit A and incorporated herein by this reference (the "Public Use Properties").
The City has assumed operation of the Public Use Properties. These Public Use
Properties were and are intended for use by the City for municipal purposes for
ongoing efforts to redevelop, provide recreational opportunities, revitalize and/or
eliminate blight in the Agency's redevelopment project areas; and
WHEREAS, pursuant to its powers under the CRL, the Agency acquired the
following two additional properties intended for future redevelopment purposes: (1)
a 9.89-acre property on Highway' 111 east of Dune Palms Road, which was the
site of a now abandoned mobile home park, and (2) 86 acres within the City's
SilverRock Resort, which are identified for future resort/commercial development, a
list of which is attached hereto as Exhibit B and incorporated herein by this
reference (the "Future Development Properties"); and
WHEREAS, during the time period of January 1, 2011, to June 30, 2011,
the City approved and agreed to accept the ownership of the Public Use Properties,
executing certificates of acceptance (the "Certificates of Acceptance") for the
Agency deeds designed to transfer ownership of the Public Use Properties from the
Agency to the City (the "Agency Deeds"); and
WHEREAS, on or about the dates listed on Exhibit A, the Agency Deeds,
along with the Certificates of Acceptance, were recorded in the official records of
the County of Riverside; and
WHEREAS, the Agency caused the preparation of appraisals of the Future
Development Properties in 2011, and thereafter, the City and Agency entered into
purchase and sale transactions whereby the City acquired the properties in
exchange for paying to the Agency the fair market value of the Future
Development Parcels ($8,320,000); and
Resolution No. 2012-053
NonMousing Agency/City Real Property Transactions
Adopted: October 2, 2012
Page 3
WHEREAS, during the time period of January 1, 2011, to June 30, 2011,
the City approved and agreed to accept the ownership of the Future Development
Properties, executing certificates of acceptance (the "FDP Certificates of
Acceptance") for the Agency deeds designed to transfer ownership of the Future
Development Parcels from the Agency to the City (the "FDP Agency Deeds"); and
WHEREAS, none of the transfers of the Public Use Properties, the Future
Development Properties, or any of the related documents and actions, were
challenged within the applicable statute of limitations; and
WHEREAS, AB 26 states, in part, that "Whe Legislature hereby finds that a
transfer of assets by a redevelopment agency [after January 1, 20111 is deemed
not to be in the furtherance of the [CRLI and is thereby unauthorized;" and
WHEREAS, AB 26 is unclear whether this provision relating to asset
transfers is intended to extend to fair market value transactions such as those
entered by the City and the Agency for the Future Development Properties; and
WHEREAS, AB 26 further states, in part, that "[clommencing [February 1,
20121, ... arrangements between the city ... that created the redevelopment
agency and the redevelopment agency are invalid...;" and
WHEREAS, by February 1, 2012, the transaction between the City and the
Agency for the purchase and sale of the Future Development Parcels was
complete; and
WHEREAS, AB 26 further states, in part, that "[alll ... properties [and]
buildings ... of the former redevelopment agency are transferred on [February 1,
20121, to the control of the successor agency;" and
WHEREAS, on or about April 20, 2012, the California State Controller issued
correspondence stating, in. part, that "[ilf your city ... received any assets from a
redevelopment agency after January 1, 2011, your city ... hereby is ordered to ...
reverse the transfer and return the applicable assets to the successor agency of the
relevant redevelopment agency;" and
WHEREAS, Assembly Bill 1484 ("AB 1484") was signed by the Governor of
California on June 27, 2012, making changes to AB 26 and certain additional
changes to the CRL; and
Resolution No. 2012-053
Non -Housing Agency/CityReal Property Transactions
Adopted: October 2, 2012 -
Page 4
WHEREAS, AB 1484, at California Health and Safety Code Section
34179.5(c)(2), categorizes certain assets as those "transferred after January 1,
2011 ... by the redevelopment agency ... to the city ... that formed the
redevelopment agency...." ("Section 34179.5(c)(2) Assets"); and
WHEREAS, AB 1484, at California Health and Safety Code Section
34179.5(c)(1), categorizes certain other assets as those "transferred from the
former redevelopment agency to the successor agency on or about February 1,
2012." ("Section 34179.5(c)(1) Assets"); and
WHEREAS, because (i) AB 26 states that a transfer of assets by a
redevelopment agency after January 1, 2011 was "unauthorized," (ii) AB 26
further states that commencing February 1, 2012, arrangements between a
redevelopment agency and the city that created it are "invalid" and (iii) the State
Controller has purported to order that ownership of certain assets be vested in
successor agencies, the Public Use Properties therefore should not be categorized
as Section 34179.5(c)(2) Assets; and
WHEREAS, because AB 26 states that all properties and buildings of the
former redevelopment agency are transferred on February 1, 2012, to the control
of the successor agency, the Public Use Properties therefore should be categorized
as Section 34179.5(c)(1) Assets; and
WHEREAS, because the Future Development Properties were conveyed to
the City in exchange for payment of their fair market value, those transactions
cannot be reversed unless and until the purchase prices and property maintenance
costs are refunded to the City; and
WHEREAS, the Successor Agency is willing to accept title to the Future
Development Properties only if the Oversight Board and the State require the
Successor Agency to take title to those properties and also provide for the
Successor Agency to refund the purchase payments and property maintenance
costs to the City; and
WHEREAS, the Successor Agency does not acknowledge that the purported
transfer of the Public Use Properties or the Future Development Properties by the
Agency to the City was not in furtherance of the CRL; and
WHEREAS, the Successor Agency does not acknowledge the effectiveness
of the Legislature's purported deeming not to be in furtherance of the CRL the
purported transfer of assets that was conducted in accordance with the CRL at the
time when made and not challenged within the applicable statute of limitations; and
Resolution No. 2012-053
Non -Housing Agency/City Real Property Transactions
Adopted: October 2, 2012
Page 5
WHEREAS, the Successor Agency does not acknowledge that commencing
February 1, 2012, arrangements between the redevelopment agency and the city
that created it are invalid; and
WHEREAS, the Successor .Agency does not acknowledge the effectiveness
of the California State Controller's order to reverse the transfer of the Public Use
Properties or the Future Development Properties and return the applicable assets to
the Successor Agency; and
WHEREAS, the Successor Agency has limited financial resources and desires
not to initiate litigation at this time with regard to AS 26, AS 1484 and/or the
purported order by the California State Controller that ownership of the Public Use
Properties be vested in the Successor Agency; and
WHEREAS, in order to avoid the costs of litigation and other costs, the
Successor Agency desires to take action in a manner consistent with AS 26, AS
1484 and the California State Controller's purported order, and in furtherance of its
duties under California Health and Safety Code Sections 34179.6(h)(1) and
34179.6(f), by processing documentation reflecting its ownership of the Public Use
Properties, without acknowledging the effectiveness of AS 26, AS 1484 and/or
such order and duties, expressly disclaiming the same; and
WHEREAS, the Successor Agency's processing of documentation reflecting
its ownership of the Public Use Properties is not intended to waive, and shall not
constitute a waiver, by the Successor Agency of any constitutional, legal or
equitable rights that the Successor Agency may have to challenge, through
administrative or judicial proceedings, the effectiveness and/or legality of all or any
portion of AS 26 or AS 1484, any determinations rendered or actions or omissions
to act by any public agency or government entity or division in the implementation
of AS 26 and AS 1484, and any and all related legal and factual issues, and the
Successor Agency expressly reserves any and all rights, privileges, and defenses
available under law and equity; and
WHEREAS, this Resolution has been reviewed with respect to applicability of
the California Environmental Quality Act ("CEQA"), the State CEQA Guidelines
(California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the
"Guidelines"), and the City's environmental guidelines; and
WHEREAS, per Section 15301 of the State CEQA Guidelines, the transfer of
real property is exempt from environmental review under CEQA because the
transfer will result in a continuation of an existing facility involving no expansion of
use and is therefore exempt from environmental review, and any future
development of the real property will. require separate environmental review; and
Resolution No. 2012-053
Non -Housing Agency/City,Real Property Transactions.
Adopted: October 2, 2012
Page 6
WHEREAS, all of the prerequisites with respect to the approval of this
Resolution have been met.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City to the
La Quinta, as follows:
SECTION 1. The foregoing recitals are true and correct and are a substantive part
of this Resolution.
SECTION 2. The City Council hereby rescinds it previous acceptance of the
transfers of the Public Use Properties and authorizes the processing of
documentation confirming the Successor Agency's ownership of the Public Use
Properties, including the execution of quitclaim deeds in favor of the Successor
Agency therefor. As to the Future Development Properties, the City Council
authorizes the processing of documentation for the reversal of the transactions in
which the City purchased those properties if the purchase price is refunded to the
City and if it is conclusively determined that those transactions are required to be
rescinded pursuant to AB 26 and/or AB 1484. If the Future Development Parcels
are required to be conveyed to the Successor Agency, the City Manager is
authorized and directed to take all steps necessary to ensure the repayment of the
purchase price and property maintenance costs to the City.
SECTION 3. The City Manager, or his designee, is hereby authorized and directed
to take such actions and execute such documents as are necessary to effectuate
the intent of this Resolution on behalf of the City.
SECTION 4. The City shall continue to use the Public Use Properties for their
intended purpose.
SECTION 5. This Resolution shall take effect upon the date of its adoption.
SECTION 6. If any provision of this Resolution or the application thereof to any
person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Resolution that can be given effect without the
invalid provision or application, and to this end the provisions of this Resolution are
severable. The City Council hereby declares that it would have adopted this
Resolution irrespective of the invalidity of any particular portion thereof.
Resolution No. 2012-053
Non -Housing Agency/City Real Property Transactions
Adopted: October 2, 2012
Page 7
PASSED, APPROVED, AND ADOPTED at the meeting of the City Council of
City of La Quinta held this 2ne of October, 2012, by the following vote:
AYES: Council Members Evans, Franklin, Henderson, Osborne, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
DON ADOL H, Mayo
City of La uinta
s �
SUSAN MAYSELS, qy Clerk
City of La Quinta, CA
(CITY SEAL)
AS TO
AIfHERINE JgNSON, City Attorney
of La Quinta, California
EXHIBIT A
ASSET DESCRIPTION
TRANSFER DATE
1
243 acres of vacant land purchased with tax exempt
bonds intended and zoned for public use at the
southwest comer of Jefferson and Ave. 52
3/42011
2
Addition to Fritz Bums Park
3/42011
3
La Quinta Museum
3/4/2011
4
lUbrary Parkin Lot Paved with Shade Structures
3/4/2011
5
IParking Lot behind Village Community Police Station
3/4/2011
6
Public Pa ing Lot in Village
3/42011
7
Landscaped Lot Next to Senior Center
3/42011
8
Pioneer Park
3/42011
9
La Quinta Park
3142011
10
.30 acre landscape lot -Parcel Map 33588, SW Comer
Highway 111 and Dune Palms Road
3/42011
EXHIBIT B
SflverRock Resort
Acreage
Parcel Descd on
Use
86.87
Parcels within Parcel Map
33367
Future Private Development
Highway 1111Easf OfDune Palms Road.
Acreage
Parcel Description
Use
Assessors Parcel Number
9.89
600-020-047
Future Private Development—