SA Resolution 2012-011RESOLUTION NO. SA 2012 - 011
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY 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. 10 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 seg.) ("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. SA 2012-011
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 U§e 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. SA 2012-011 -
Non -Housing 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 "[tlhe 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 [CRL] 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. SA 2012-011
Non -Housing Agency/City Real 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," Gil 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. SA 2012-011
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 AB 26, AB 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 AB 26, AB
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 AB 26, AB 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 AB 26 or AB 1484, any determinations rendered or actions or omissions
to act by any public agency or government entity or division in the implementation
of AB 26 and AB 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 ("CEOA"), 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
ResoWon No. SA 2012-011
Non-Houdng Agency/City Real Property Transacdons
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 of La Quinta acting as
Successor Agency to the La Quinta Redevelopment Agency, as follows:
SECTION 1. The foregoing recitals are true and correct and are a'substantive part
of this Resolution.
SECTION 2. The Governing Board of the Successor Agency hereby authorizes the
processing of documentation confirming its ownership of the Public Use Properties,
including the execution of certificates of acceptance therefor. As to the Future
Development Properties, the Board 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 Executive Director is authorized and directed to take all steps
necessary to ensure the repayment of the purchase price and property maintenance
costs to the City, including adding the repayment obligation to the Recognized
Obligation Payment Schedule.
SECTION 3. The Executive Director, or 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 Successor Agency.
SECTION 4. The City shall have the right to 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 Successor Agency hereby declares that it would have adopted this
Resolution irrespective of the invalidity of any particular portion thereof.
Resolution No. SA 2012-011
Non -Housing Agency/City Real Property Transactions
Adopted: October 2, 2012
Page 7
PASSED, APPROVED, AND ADOPTED at the meeting of the City of La
Quinta acting as Successor Agency to the La Quinta Redevelopment Agency held
this 2nd of October, 2012, by the following vote:
AYES: Agency Members Evans, Franklin, Henderson, Osborn, Chair Adolph
NOES: None
ABSENT: None
ABSTAIN: None
a�- bi-4,
DON ADOLPH, M
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment
Agency
ATTEST:
SUSAN MAYSELS, Successor Agency Secretary
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
M /KATIHERINE JENS Successor Agency Counsel
City of La Quinta Acti as Successor
Agency to the La Quinta Redevelopment Agency
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
3/4/2011
2
Addition to Fritz Bums Park
3/4/2011
3
La Quinta Museum
3/4/2011
4
Ubrary Parkin Lot Paved with Shade Structures
3/4/2011
5
Parking Lot behind Village Community Police Station
3/4/2011
6
Public Parking Lot in Village
3/4/2011
7
Landscaped Lot Next to Senior Center
3/4/2011
8
1 Pioneer Park
3/4/2011
9
ILa Quinta Park
3/4/2011
1.30
10
acre landscape lot -Parcel Map 33588, SW Comer
Highway 111 and Dune Palms Road
3/4/2011
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