RDA Resolution 2011-032RESOLUTION NO. RA 2011 - 032
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING A REMITTANCE AGREEMENT
BETWEEN THE CITY OF LA QUINTA AND THE AGENCY
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 La Quinta Redevelopment Agency ( "Agency ") is 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 3 33000, et seq.) ( "CRL "); and
WHEREAS, as part of the 2011 -12 State budget bill, the California Legislature
enacted and the Governor signed, companion bills AB x1 26 (the "Dissolution Act ")
and AB x1 27 (the "Continuation Act "), requiring that each redevelopment agency be
dissolved unless the community that created it enacts an ordinance electing to
participate in an "Alternate Voluntary Redevelopment Program" and committing the
community to make certain annual remittance payments to the county auditor -
controller; and
WHEREAS, on August 2, 2011, under the threat of dissolution pursuant to the
Dissolution Act, the City Council adopted Ordinance No. 491, pursuant to which it
agreed, subject to certain contingencies and reservations set forth therein, to make the
Fiscal Year 2011 -2012 annual remittance payment, as well as the subsequent annual
remittance payments as set forth in the CRL; and
WHEREAS, the Continuation Act allows the City to enter into a remittance
agreement with the Agency, whereby the Agency transfers annual portions of its tax
increment to the City in amounts not to exceed the City's annual remittance payment
amount to enable the City to make its annual remittance payments, and further
provides the Agency with an exemption from making the full Fiscal Year 2011 -2012
allocations to the Agency's low- and moderate - income housing fund (the "Housing
Fund "), as required by Health and Safety Code Sections 33334.2, 33334.4, and
Resolution No. RA 2011 -032
Approval of Remittance Agreement
Adopted: September 20, 2011
Page 2
33334.6 (the "Housing Fund Allocations "), if the Agency makes the finding that there
are insufficient other moneys available to meet the Agency's debt and other
obligations, current priority program needs, or its obligations under the remittance
agreement (collectively, the "Agency's Total Obligations "); and
WHEREAS, based on the facts set forth in the City's parallel staff report,
the other moneys available to the Agency are insufficient to fully fund the
Agency's Total Obligations; and
WHEREAS, Agency Counsel has prepared a remittance agreement (the
"Agreement "), which provides, among other things, for the transfer of the
2011/2012 Housing Fund Allocations to the City to be applied towards the City's
2011/2012 remittance payment; and
WHEREAS, an action challenging the constitutionality of the Dissolution Act
and Continuation Act has been filed in the California Supreme Court by the
California Redevelopment Association, the League of California Cities, and two
individual cities; and
WHEREAS, on August 11th, 2011, the Court (i) issued an order indicating
that it would exercise jurisdiction over the lawsuit, (ii) set an expedited briefing
schedule to allow it to decide the case before the first annual remittance payment
is due in January 2012, and (iii) stayed the effectiveness of all of the Continuation
Act, and portions of the Dissolution Act; and
WHEREAS, the Agency's approval of the Agreement is without prejudice to
the City's right to challenge the, constitutionality and legality of the Dissolution Act
and /or the Continuation Act; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW THEREFORE, BE IT RESOLVED, by the La Quinta Redevelopment
Agency, as follows:
Section 1 . Recitals The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2 Insufficient Other Agency Funds Based on the facts set forth in the
City's parallel staff report, all of which are on file with the City Clerk, the Agency
hereby finds that there are insufficient other moneys available to the Agency to
fully fund the Agency's Total Obligations.
Section 3 . Approval of Agreement The Agreement, a copy of which is on file
with the Agency Secretary, is hereby approved; provided, however, that the
Resolution No. RA 2011 -032
Approval of Remittance Agreement
Adopted: September 20, 2011
Page 3
effectiveness thereof is conditioned on the Court upholding the Dissolution Act and
the Continuation Act.
Section 4 Effect of Final Court Decision The Agreement shall automatically
terminate in the event there is a final determination by any court of competent
jurisdiction that the Dissolution Act and /or the Continuation U Act .are
unconstitutional and therefore invalid, and all appeals therefrom are exhausted ,or,
unsuccessful, or time for filing an appeal therefrom has lapsed.
Section 5 . Implementation The Agency Board hereby authorizes and directs the
Executive Director to take any action and execute any documents necessary to
implement this Resolution, including, but not limited to, the Agreement.
Section 6 . CEQA The Agency Board finds, under Title 14 of the California Code
of Regulations, Section 15378(b)(4), that this Resolution is exempt from the
requirements of the California Environmental Quality Act ( "CEQA ") in that it is not
a "project," but instead consists of the continuation of a governmental funding
mechanism for existing projects and programs for which CEQA analysis has already
been conducted, and does not commit funds to any specific project or program.
Section 7. 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 Agency Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held this 20`" day of September, 2011, by the following
vote, to wit:
AYES: Agency Members Adolph,
Franklin, Sniff, Chair Henderson
NOES: None
ABSENT: None
ABSTAIN: None
Terry Hendon, Chairperson
La buinta R evelopment Agency
Resolution No. RA 2011 -032
Approval of Remittance Agreement
Adopted: September 20, 2011
Page 4
ATTEST;
Secretary
Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
AT RINE J ON, Agency Counsel
La Quinta Redev pment Agency