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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 �o �o qy N m 1 g �o A 1 N � v C CD 0 10 b V eai m m w CA W - o ID C C m C v m � m m 0 M �'7