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HomeMy WebLinkAbout2011-04ORDINANCE NO. 2011-04 DETERMINING THAT THE TOWN OF DANVILLE WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE The Danville Town Council does ordain as follows: SECTION 1. FINDINGS In enacting this ordinance, the Town Council makes the following findings: 1. The Danville Town Council approved and adopted the Redevelopment Plan for the Downtown Redevelopment Project ( "Redevelopment Plan ") covering certain properties within the Town (the "Project Area ") on July 14,1986. 2. The Community Development Agency of the Town of Danville ( "Agency ") is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ( "CRL "). 3. Since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy. 4. Over the coming years, the Agency hopes to continue to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Area's economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure. 5. As part of the 2011/12 State budget bill, the California Legislature enacted and the Governor signed, companion bills AB X1 26 and AB X1 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments. 6. Specifically, AB X1 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011. 7. AB X127 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code. 8. The Alternative Voluntary Redevelopment Program requires that the community agree by ordinance to remit specified annual amounts to the county auditor - controller, which amount is determined by the California Director of Finance. 9. On August 15, 2011, acting pursuant to Health and Safety Code Section 34194, the Town filed an appeal of the amount of remittance determined by the California Director of Finance, seeking to have the amount of remittance reduced. 10. On July 18, 2011, the California Redevelopment Association and League of California Cities, filed a Petition for Writ of Mandate in the California Supreme Court asking the Court to declare AB X1 26 and AB X1 27 unconstitutional and to prohibit the State of California from enforcing the laws (the "CRA suit "). 11. On August 11, 2011, as amended on August 17, 2011, the California Supreme Court, issued an order agreeing to take original jurisdiction, issuing a stay against enforcement of many provisions of AB X126 and all of AB X127 (the "Stay "), and setting a briefing schedule with the goal of issuing a final decision before January 15, 2012. 12. Under the threat of dissolution pursuant to AB 1X 26, if AB 1X 26 is found constitutional by the Supreme Court, the Town shall make the Fiscal Year 2011/12 community remittance, established by the California Director of Finance at $837,877, or in the amount determined by the Department of Finance in the Town's pending appeal, as well as the subsequent annual community remittances as set forth in the CRL. 13. The Town agrees to make these community remittances under protest and without prejudice to the Town's support of the CRA suit challenging the constitutionality of AB X1 26 and AB X1 27. Because of the stay issued by the California Supreme Court, the Town shall not make any community remittance payments unless and until the stay is lifted and the laws are found constitutional by the Supreme Court. 14. All other legal prerequisites to the adoption of this Ordinance have occurred. PAGE 2 OF ORDINANCE NO. 2011-04 SECTION 2. PARTICIPATION IN THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM In accordance with Health and Safety Code Section 34193, and based on the Findings set forth above, the Town Council hereby determines that the Town shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by AB X127, if the law is found constitutional by the California Supreme Court. SECTION 3. EFFECT OF STAY OR DETERMINATION OF INVALIDITY The Town shall not make any community remittance while the stay granted by the California Supreme Court on August 11, 2011 and modified on August 17, 2011, against the enforcement of AB 1X 26 and AB 1X 27 remains in effect. If there is a final determination by the Supreme Court that AB 1X 26 and AB 1X 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. SECTION 4. IMPLEMENTATION The Town Council hereby authorizes and directs the Town Manager to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Contra Costa County Auditor - Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the Town's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in AB 1X 27. Such actions shall be taken only if necessary in light of the Supreme Court's ruling in the pending litigation. SECTION 5. ADDITIONAL UNDERSTANDINGS AND INTENT It is the understanding and intent of the Town Council that once the Agency is again authorized to enter into agreements under the CRL, the Town will enter into an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax increment to the Town in amounts not to exceed the annual community remittance payments to enable the Town, directly or indirectly, to make the annual remittance payments. SECTION 6. CEQA The Town Council finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this Ordinance is exempt from the requirements of the California Environmental Quality Act ( "CEQA ") in that it is not a "project," but instead consists of the creation and continuation of a governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program. PAGE 3 OF ORDINANCE NO. 2011-04 SECTION 7. SEVERABILITY If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of the ordinance. The Danville Town Council hereby declares that they would have adopted the ordinance, and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases declared invalid. SECTION 8. PUBLICATION AND EFFECTIVE DATE. The City Clerk shall have a summary of this ordinance published twice in a newspaper of general circulation, once within five (5) days before its adoption and once within 15 (fifteen) days after adoption. This ordinance shall become effective only at such time as the California Supreme Court lifts the stay issued on August 11 and August 17, 2011 and determines that the Voluntary Program Act is constitutional, but in event shall the ordinance be effective for at least 30 days after adoption. The foregoing Ordinance was introduced on September 6, 2011 and approved and adopted by the Danville Town Council at a regular meeting held on September 20, 2011, by the following vote: AYES: Stepper, Andersen, Arnerich, Doyle, Storer NOES: None ABSTAIN: None ABSENT: None MAYOR APPROVED AS TO FORM: CITY ATTORNEY A TTL'CT. PAGE 4 OF ORDINANCE NO. 2011-04 CLERK'S CERTIFICATE I, Marie Sunseri, City Clerk of the Town of Danville, hereby certify that the foregoing is a true and accurate copy of Ordinance No. 2011 -04 of said Town and that said ordinance was published according to law. Dated: / City Clerk of Town of Dan PAGE 5 OF ORDINANCE NO. 2011-04