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HomeMy WebLinkAboutAGENDA REPORT 1994 1207 CC REG ITEM 11ITE CITY OF MOORPARK u.ii ;ez:. AGENDA REPORT t� CTION: TO: Honorable Mayor and Members of the City Council 1.. FROM: Steven Hayes, Economic Development Manage DATE: November 8, 1994 (Mtg 12/07/94) SUBJECT: Consider Introduction for First Reading of Ordinance No. , and Second Reading and Adoption of Ordinance No. , Amending the Redevelopment Plan for the Moorpark Redevelopment Project at an Adjourned Meeting. DISCUSSION: The California Redevelopment Law Reform Act of 1993 (AB 1290) has mandated that certain limitations be placed on all redevelopment plans adopted prior to January 1, 1994. Table I attached, compares current limitations in the Moorpark Redevelopment Plan with those mandated by Section 33333.6 added to the California Community Redevelopment Law (CCRL) by AB 1290. The Moorpark City Council will need to adopt prior to 1995, the attached Ordinance pursuant to CCRL Section 33333.6(e) and (f) to amend the following limitations for the Redevelopment Plan for the Project Area: 1. Time limitations to incur indebtedness. The current expiration for the Project is twenty -five (25) years from plan adoption (July, 2014); the Ordinance will amend this date to twenty (20) years from plan adoption, (July, 2009) . 2. Limit on effectiveness of the Plan. The Project is currently effective for forty -five (45) years from the date of adoption, (July, 2034). The Ordinance will amend the Plan to limit its effective date to forty (40) years from the date of adoption, (July, 2029). 3. Limitation to Receive Property Taxes to Pay Debt Currently there is no limitation for the Project; the Ordinance will amend the Plan by setting the last date the Agency can receive property tax to pay debt at ten (10) years after the termination of the Plan, (July, 00128 2039) . BONDED INDEBTEDNESS INCURRED PRIOR TO JANUARY 1994 TO BE EXEMPTED CCRL Section 33333.6(h) states that "This section shall not be construed to affect the validity of any bond, indebtedness, or other obligation.... nor shall this section be construed to affect the right of any agency to receive property taxes, pursuant to Section 33670, to pay the indebtedness or other obligation" on debts incurred prior to January 1, 1994. The Agency has the following bonded indebtedness outstanding incurred prior to January 1, 1994: A. Moorpark Redevelopment Agency, Moorpark Redevelopment Project Tax Allocation Bonds, Series 1993, in the amount of $10,000,000 due October 1, 2018. Since the due date is well before July 2039, this bond will not need to be exempted from the provisions of CCRL Section 33333.6 as allowed in CCRL Section 33333.6(h). MOORPARK'S PREVIOUS COMPLIANCE WITH PROVISIONS OF CCRL SECTION 33334.6(g) CCRL Section 33334.6(g) stipulates, for plans adopted prior to 1977, that if an agency incurs a deficit in its Low and Moderate Income Funds during any year subsequent to FY 1985 -86 by not depositing at least 20 percent of taxes allocated to it pursuant to Section 33670 into the fund, it shall adopt a plan to eliminate the deficit in subsequent years. If the agency has established such a plan, the time limitations required by AB 1290 may be extended as appropriate to eliminate the deficit. The Project was adopted after 1977, therefore this section is not applicable. EXTENSIONS ON LIMITATIONS ON ESTABLISHING DEBT Section 33333.6(a) (2) stipulates that extensions on the limitation establishing debt described in Section 33333.6(a)(1) may be extended "only by amendment of the redevelopment plan" for up to ten (10) years if the agency finds there is "substantial evidence that" there continues to be "significant" blight in the Project Area which cannot be eliminated without additional debt. 00129 This Amendment will have no impact on the existing pass through agreements with the various taxing agencies, any other agreements that the Agency has approved, or the existing payment for debt service for the Tax Increment Revenue Bond issued in 1993. RECOMMENDATION: Staff recommends the following: 1) Introduce Ordinance No. for first reading, amending the Redevelopment Plan for the project area and 2) consider second reading and adoption of Ordinance No. at an adjourned meeting. 0013 0 TAB L E _ MOORPARK REDEVELOPMENT AG EN C Y HOOK kK REDEVELOPMENT AGENCY COMPLIANCE WITH SECTION 33333.6 REQUIRBNNENNTS ............ ..IAA REDEVELOPMENT EXISTING POST AB 1290 DURATION OF POST AB 1290 POST AB 1290 PLAN LIMITS ON LIMITS ON EXISTING PLAN DEBT INCURRING INCURRING DEBT* PLAN EFFECTIVENESS REPAYMENT DEBT 33333.6(A)(1) SECTION 900 33333.6(b) 33333.6(C) SECTION 602 MOORPARK 25 YRS. FROM 20 YRS. FROM 45 YRS FROM 40 YRS FROM 10 YRS. AFTER REDEVELOPMENT ADOPTION ADOPTION ADOPTION ADOPTION TERMINATION ** PROJECT JULY, 2014 JULY, 2009 JULY 2034 JULY 2029 JULY 2039 ADOPTED 6/5/89 $iI ......: f.BBT DEBT. INSTRUNENT. DAT TO :BE PAID :OFF MOORPARK REDEVELOPMENT AGENCY MOORPARK REDEVELOPMENT PROJECT TAX ALLOCATION BOND SERIES 1993 $10,000,000 OCTOBER 1, 2018 ... .............. .. ............... L( iK T$::UMMICITS AMOUNT OWNED LMI FUND N/A N/A * 10 YEAR EXTENSION PERMISSIBLE (33333.6(A)(2) ** NO EXISTING LIMITATION PRESENTLY EXISTS. 00131