The URL can be used to link to this page

Home My WebLink AboutSB 93 (Kehoe) - Redevelopment �_•�� CITY OF PALM DESERT � � _ COMMUNITY SERVICES DEPARTMENT STAFF REPORT REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON SB 93 (KEHOE) AT ITS MEETING OF FEBRUARY 24, 2009 DATE: March 12, 2009 CONTENTS: SB 93 Language RECOMMENDATION: By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting of February 24, 2009, and direct staff to prepare a letter of opposition for the Mayor's signature with regard to SB 93 (Kehoe) relative to redevelopment. BACKGROUND: Community Redevelopment Law requires agencies to make specific findings if it pays all or part of the value of land and cost of installation and construction of any building,facility, structure,or other improvement that is publicly owned within or without a project area. If passed, SB 93 would require redevelopment agencies to make specified findings based on substantial evidence in the record if the agency pays all or part of the value of land, cost of installation and construction of any building,facility, structure,or other improvement that is publicly owned either within or without the project areas. Agencies would no longer be authorized to enter into contracts with public corporations other than the community for the value of the land or the cost of the installation and construction of any building,facility, structure or other improvement. This bill could prevent the City from participating with other agencies on projects such as Cal State, College of the Desert, YMCA, and maybe even Riverside County,whichever might be deemed to be considered in "the community." In addition,the City Council's findings may not be final and could stall a project until a validation measure is considered and acted upon by th u s Therefore,the Legislative Review Committee recommends that the City Council p o e 9 and direct staff to prepare a letter stating that position to appropriate legislators a d o itt e for the ayor's signature. �, _ � �y U r� '„�-� r: 4�.� � � L.. v� ATRICIA SCULL , CFEE PAUL GIBSON � � � ,L SENIOR MANAGEMENT ALYST DIRECTOR OF FINANCE/CITY TR A R R V �� C �' E U U ' � .a � �� 3 SHEILA R. GIL AN J M. OHLMUTH c� Q , � .= ACM/COMMUNITY SE ICES I Y MANAGER � = : � � �" c:, � .. G ° U �>^. '= r ZQcs. =� :�,' � �' �r ✓' wE— ° F,'�„ :. 0 � �:: �+ cr_ cr � 'nn .., C. W }. O G�" p Gz: 's. v � x � � zQa > o � State Net Bill Text Page 1 of 4 L�-- '_' 1 �... In bill text the following has special meaning underline denotes added text -�- - � �-- - �_,_._ , � 2009 CA S 93 AUTHOR: Kehoe VERSION: Introduced VERSION DATE: O1/22/2009 SENATE BILL No. 93 INTRODUCED BY Senator Kehoe JANUARY 22, 2009 An act to amend Section 33445 of the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST SB 93, as introduced, Kehoe. Redevelopment: payment for land or buildings. The Community Redevelopment Law requires a redevelopment agency to make specified findings if the agency pays all or a part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement that is publicly owned either within or without the project area. These determinations by the agency and the local legislative body are final and conclusive. An agency is authorized to enter into a contract with the community or other public corporation when the value of the land or the cost of the installation and construction of the building, facility, structure, or other improvement, or both, has been, or will be,paid or provided for initially by the community or other public corporation, and the agency agrees to reimburse,the community or other public corporation. An agency may contract with the community when the land has been or will be • acquired by, or the cost of the installation and construction of the building, facility, structure, or other improvement has been paid by, a parking authority,joint powers entity, or other public corporation to provide a building, facility, structure, or other improvement that has been or will be leased to the community. This bill would require a redevelopment agency to make specif ed findings, based on substantial evidence in the record, if the agency pays all or a part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement that is publicly owned either within or without the project area. These findings would not be final and conclusive. An agency would no longer be authorized to enter into a contract with a public corporation other than the community for the value of the land or the cost of the installation and construction of the building, facility, structure, or other improvement, or both. The bill would provide that an agency may contract with the community prior to January 1, 2009, when the land has been or will be acquired by, or the cost of the installation and construction of the building, facility, structure, or other improvement has been paid by, a parking authority,joint powers entity, or other public corporation to provide a building, http://client.statenet.com/secure/pe/ts.cgi?mode=fetch&text version=CA2009000S93 200... 1/23/2009 State Net Bill Text Page 2 of 4 . facility, structure, or other improvement that has been or will be leased to the community. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 33445 of the Health and Safety Code is amended to read: 33445. (a)Notwithstanding Section 33440, an agency may, with the consent of the legislative body, pay all or a part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement that is publicly owned either within or without the project area, if the legislative body d��finds, based on substantial evidence in the record. all of the following: , , , , � �1) Si�nificant blight remains within the project area. (2) The blight cannot be eliminated without the acquisition of the land or the installation and construction of the building facility structure or other improvement that is publicly owned. � �That no other reasonable means of financing the buildings, facilities, structures, or other improvements, are available to,the community , including, but not limited to general obligation bonds revenue bonds, special assessment bonds and bonds issued pursuant to the Mello-Roos CommunitX Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code) . � �That the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements , that are publicly owned is consistent with the implementa.tion plan adopted pursuant to Section 33490. (b) The . , , , , acquisition of preper�y-�land and the installation or construction of each buildin�, facility , structure, or improvement that is publicly owned shall be provided for in the redevelopment plan. (c)An agenc�shall not pay for the normal maintenance or operations of buildings, facilities, structures, or other improvements that are publicly owned. Normal maintenance or operations do not include the construction, expansion, addition to, or reconstruction of, buildings, facilities, structures, or other improvements that are publicly owned otherwise undertaken pursuant to this section. � http://client.statenet.com/secure/pe/ts.cgi?mode=fetch&text version=CA2009000593 200... 1/23/2009 • State Net Bill Text Page 3 of 4 (d) (1l When the value of the land or the cost of the installation and construction of the building, facility, structure, or other improvement, or both, has been, or will be, paid or provided for initially by the community , the agency may enter into a contract with the community er to reimburse the community for all or part of the value of the land or all or part of the cost of the building, facility, structure, or other improvement, or both, by periodic payments over a period of years. � �The obligation of the agency under the contract shall constitute an indebtedness of the agency for the purpose of carrying out the redevelopment project for the project area, ro�hielrand the indebtedness may be made payable out of taxes levied in the project area and allocated to the agency under subdivision(b) of Section 33670 or out of any other available funds. (e)�irPrior to Janua.ry 1, 2009 in a case where the land has been or will be acquired by, or the cost of the installation and construction of the building, facility, structure, or other improvement has been paid by, a parking authority,joint powers entity, or other public corporation to provide a building, facility, structure, or other improvement that has been or will be leased to the community, the contract may be made with, and the reimbursement may be made payable to, the community. (� With respect to the financing, acquisition, or construction of a transportation, collection, and distribution system and related peripheral parking facilities, in a county with a population of 4,000,000 persons or more,the agency shall, in order to exercise the powers granted by this section, enter into an agreement with the rapid transit district that includes the county, or a portion thereof, in which agreement the rapid transit district shall be given all of the following responsibilities: (1) To participate with the other parties to the agreement to design, determine the location and extent of the necessary rights-of-way for, and construct, the transportation, collection, and distribution systems and related peripheral parking structures and facilities. , (2) To operate and maintain the transportation, collection, and distribution systems and related peripheral parking structures and facilities in accordance with the rapid transit district's outstanding agreements and the agreement required by this paragraph. (g) (1)Notwithstanding any other authority granted in this section, an agency shall not pay for, either directly or indirectly, with tax increment funds the construction, including land acquisition, related site clearance, and design costs, or rehabilitation of a building that is, or that will be used as, a city hall or county administration building. (2) This subdivision shall not preclude an agency from making payments to construct, rehabilitate, or replace a city hall if an agency does any of the following: (A)Allocates tax increment funds for this purpose during the 1988-89 fiscal year and each fiscal year thereafter in order to comply with federal and state seismic safety and accessibility standards. (B)Uses tax increment funds for the purpose of rehabilitating or replacing a city hall that was seriously damaged during an earthquake that was declared by the President of the United States to be a natural disaster. (C) Uses the proceeds of bonds, notes, certificates of participation, or other indebtedness that was issued prior to January 1, 1994, for the purpose of constructing or rehabilitating a city hall, as evidenced http://client.statenet.com/secure/pe/ts.cgi?mode=fetch&text version=CA2009000593 200... 1/23/2009 State Net Bill Text Page 4 of 4 . by documents approved at the time of the issuance of the indebtedness. Copyright 2009 State Net.All Rights Reser ved. �:.�:.?� ' http://client.statenet.com/secure/pe/ts.cgi?mode=fetch&text version=CA2009000S93_200... 1/23/2009