1999 AGN SEP 07 I03 - Laserfiche WebLink

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In essence, AB 1342 gives cities which did not amend their plans to conform with AB 1290 time limits a second chance to extend the time limits in their redevelopment plans through an expedited ordinance process, so long as they do not exceed the time limits contained in AB 1290. The amending ordinance as provided for under AB 1342 must be adopted on or after January 1, 1999, but on or before December 31, 1999. Furthermore, AB 1342 does not require the Agency to prepare and process a formal amendment to the redevelopment plan to effectuate changes in these time limits. Discussion Currently the Agency has several redevelopment plans that may benefit from amending the time limits as allowed for under AB1342. Three redevelopment plans currently have time limitations on the duration of the redevelopment plans and repayment of debt that are shorter than those limits as provided for by AB 1290 contained in Section 33333.6. These redevelopment plans are: Plan Adopted Mt. Vernon Corridor 06/30/87 West Valley 07/15/86 West Valley Amended 06/30/87 Termination Limit on Debt of Activities Repayment 06/30/17 06/30/27 07/15/16 07/15/26 06/30/17 06/30/27 Under AB 1342, each one of these redevelopment plans may be amended to provide for termination of redevelopment plans either 40 years from plan adoption, or January 1, 2009, whichever is later. In each of the cases, the 40 years from the date of plan adoption will allow the Agency to extend the time when redevelopment activities may take place. In addition, the time for repayment of indebtedness can also be extended to 10 years from the new termination date of the redevelopment plan. The following would be the proposed new time limits for the various redevelopment plans: Plan Adopted Mt. Vernon Corridor 06/30/87 West Valley 07/15/86 West Valley Amended 06/30/87 Financial Impact Termination Limit on Debt of Activities Repayment 06/30/27 06/30/37 07/15/26 07/15/36 06/30/27 06/30/37 Extending the time limits on the redevelopment plans, as well as the time limits to collect tax increment and repay debt in the project areas will change the actual percentage of the tax increment the Agency will receive in the future. Taxing agencies that do not have a current tax sharing agreements with the Agency will be entitled to a specific percentage of the tax increment revenues as provide by certain formulas contained in Section 33607.5 subdivisions (b), (c), (d). Starting the first fiscal year following the year in which the limitation(s) being amended would have otherwise expired, these agencies will be entitled to start receiving pass-through payments. For these plans, beginning in 2016 and 2017, a new adjusted base year will be established and used to determine the amounts that should be passed through to these agencies. These payments will begin as of 2016 and 2017 and continue until the time limits the Agency can collect tax increment to repay debt, 2036 and 2037 respectively.