2004 AGN APR 20 I02 - Laserfiche WebLink

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did not occur and the ordinance was pulled for further review. During the two week period between the first reading and the scheduled second reading, information became available regarding possible conflict of interest issues with certain Councilmembers that warranted further review. Based upon this review and the potential conflict of interest issues, it was determined to be in the best interest of the City to re -introduce an ordinance for each project area rather than a single ordinance. Therefore, individual ordinances for each of the project areas have been prepared, thereby allowing each Councilmember to vote on each project area individually and eliminating the need to reconstitute a quorum. This staff report and related individual ordinances will replace and supersede the ordinance that was originally introduced for first reading on February 17, 2004. DISCUSSION/ANALYSIS: In accordance with California Law, a redevelopment agency must incur debt to receive tax increment. Examples of debt permissible by law include tax-exempt bonds and owner participation agreements. As shown in Table 1, the last date for the Redevelopment Agency for the City of Colton (the "Agency") to conduct redevelopment activities ranges from the year 2009 for both Downtown No. 1 and Downtown No. 2 to the year 2027 for the Mt. Vernon Corridor and West Valley project areas. Redevelopment activities in each of the project areas may be undertaken beyond 2004, however, the Agency can only receive tax increment for debt incurred, prior to the respective time limit. The Agency's inability to incur additional debt after the deadline will limit the potential for redevelopment activities. These ordinances extend the Agency's time limit to incur debt throughout the life of each Redevelopment Plan. Tables 2 through 15, attached hereto, project tax increment revenues and the required pass- through payments under the Agency's current redevelopment plan limitations, as well as projected revenues and pass-through payments if SB 211 were applied to each project area. SB 211 is not applicable to the Rancho Mill Project Area since it was adopted after AB 1290 became effective. FINANCIAL IMPACT: Although the pass-through payment obligation increases over time, it remains a nominal amount in comparison to the total tax increment the Agency receives. For example, the new pass through payments for 2004-2005 are estimated to be approximately $63,000 or 1% of the projected $5.5 million in total tax increment revenues. Assuming a two percent annual growth in assessed property valuation, the new pass-through payments are estimated to be $246,000 by 2015 (tax increment revenues in 2015 are projected to be approximately $6.9 million). Passage of these ordinances will increase the administrative burden in tracking tax increment and related pass-through obligations. ENVIRONMENTAL IMPACT: There are no environmental impacts related to this ordinance. CONFLICT OF INTEREST — Gift Disclosure Requirements N/A RECOMMENDATION: Staff recommends that the City Council waive further reading, read by title only and introduce the following ordinances: 1) Ordinance concerning time limits for debt for the Downtown I redevelopment project area. 2) Ordinance concerning time limits for debt for the Downtown II redevelopment project area. 3) Ordinance concerning time limits for debt for the Mt. Vernon Corridor redevelopment project area 4) Ordinance concerning time limits for debt for the West Valley Amendment redevelopment project area. RVPUB\MXM\669729.1