OBRES 2013-004RESOLUTION NO. OB 2013 -004
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY AS SUCCESSOR- AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY RATIFYING AND
APPROVING THE SALE BY THE FORMER LA QUINTA
REDEVELOPMENT AGENCY TO THE CITY OF LA QUINTA
OF CERTAIN PROPERTIES PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34181
WHEREAS, the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency ( "Oversight Board" or "Successor Agency," as
applicable) has been established to direct the Successor Agency to take certain actions
to wind down the affairs of the former La Quinta Redevelopment Agency ( "Agency ") in
accordance with the California Health and Safety Code; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No. 1 Redevelopment Plan and the Project Area No.2
Redevelopment Plan pursuant to the provisions of the California Community
Redevelopment Law (Health and Safety Code §.33000, et sec.) ( "CRL "); and
WHEREAS, pursuant to its powers under the CRL, the Agency acquired the
following two 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 (the "Future
Development Properties"); 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 agreed to and did acquire the
properties in exchange for paying to the Agency the fair market value of the Future
Development Properties ($8,320,000); and
WHEREAS, during the time period of January 1, 2011, to June 30, 2011,
the City executed certificates of acceptance for the deeds designed to transfer
ownership of the Future Development Properties from the Agency to the City (the
"Agency Deeds "), and the Agency Deeds, along with the certificates of
acceptance, were recorded in the official records of the County of Riverside; and
WHEREAS, none of the transfers of the Future Development Properties, or
any of the related documents and actions, were challenged within the applicable
statute of limitations; and
Resolution No. OB 2013 -004
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 2
WHEREAS, as part of the 2011 -12 State budget bill, the California
Legislature enacted and the Governor of California signed, ABx1 26 requiring that
each redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 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 ABx1 26 and struck
down as unconstitutional ABx1 27; 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," that
"[c]ommencing [February 1, 20121, ... arrangements between the city ... that
created the redevelopment agency and the redevelopment agency are invalid...;"
and that "fall] ... properties [and] buildings ... of the former redevelopment agency
are transferred on [February 1, 2012], 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
WHEREAS, pursuant to Health and Safety Code Section 34181(a), the
Oversight Board is required to direct the Successor Agency to dispose of all assets
and properties of the former Agency; and
WHEREAS, during the Successor Agency's exit interview with the auditors
from the State Controller's Office, the auditors recommended that the Oversight
Board ratify and approve the sale of the Future Development Properties by the
Agency to the City pursuant to Health and Safety Code Section 34181(a); and
Resolution No. OB 2013 -004
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 3
WHEREAS, notice of the action proposed to be taken by the Oversight Board
pursuant to this Resolution was duly published in accordance with the requirements
of Health and Safety Code Section 34181(f); and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of City as
Successor Agency to the La Quinta Redevelopment Agency, does hereby resolve as
follows:
Section 1 . Recitals The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Ratification and Approval of Agency Sa to City_. The Oversight
Board hereby ratifies and approves the Agency's sale to the City of the Future
Development Properties pursuant to Health & Safety Code Section 34181.
Section 3 . Severability 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 which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Section 4 . Certification The Oversight Board Secretary shall certify to the
adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the City as Successor Agency to the La Quinta Redevelopment Agency held this
13 day of March, 2013, by the following vote, to wit:
AYES: Board Members Ellis, Marshall, Maysels, McDaniel, Osborne and
Chairman Pena
NOES: None
ABSENT: Board Member Nelson
ABSTAIN: None
Resolution No. OB 2013 -004
Ratification of Agency Sale to City of Development Properties
Adopted: March 13, 2013
Page 4
FA
Vianka Orrantia
Oversight Board
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency