2004 AGN APR 20 I02 - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF APRIL20,2004 TO: Honorable Mayor and City Councilmembers FROM: Candace Cassel, Redevelopment Manager Item #2 SUBJECT: Consideration and Approval of Ordinances Adopting Amendments to the Existing Redevelopment Plans for Downtown No. 1, Downtown No. 2, Cooley Ranch, Santa Ana River, West Valley, West Valley Amendment I, and Mt. Vernon Project Areas Concerning Time Limitations for Issuing Debt Pursuant to SB 211. DATE: March 11, 2004 BACKGROUND: In 1964, the City Council adopted Ordinance No. 1179, adopting the Redevelopment Plan for the Downtown No. 1 Redevelopment Project Area. This was the first of seven redevelopment project areas in the City, which also included: Downtown No. 2 Project Area (adopted 1965); Cooley Ranch Project Area, as amended (adopted 1975); Santa Ana River Project Area (adopted 1982); West Valley Project Area, (adopted 1986); West Valley Amendment I, (adopted 1987); Mt. Vernon Corridor Project Area (adopted 1987); and Rancho Mill (adopted 1994). A full list of the project areas and their plan adoption dates are presented in Table 1, attached hereto. Table 1 also reflects time limits to incur debt. AB 1290, which became effective in 1994, limited a redevelopment agency's ability to incur debt to the later of 20 years following adoption of the redevelopment plan or 2004. As the 2004 financing deadline approached, the California Redevelopment Association sponsored legislation to eliminate the time limit on incurring debt through the adoption of a simple ordinance without undertaking an extensive plan amendment. The ordinance does not require any noticing, hearings or documentation. This legislation, typically referred to as SB 211, permits the City Council to adopt an ordinance that would eliminate the date to incur debt. Amendments to ,redevelopment project areas made under SB 211, require a redevelopment agency to mak6 statutory pass-through payments to all taxing agencies that the respective project area does not have an existing pass-through agreement with (i.e. the County of San Bernardino, local school districts, San Bernardino Flood Control District, and Municipal Water District). Although passage of SB 211 triggers pass-through payments to varying taxing agencies, pass-through payments are only activated if new projects, which require incurring additional debt, are implemented in the project areas. The amount of the statutory payments required under SB 211 is based on a three -tiered system. The first tier of payments would begin on the first year after which the time limitation was eliminated, and the second tier would begin in the eleventh year after which the time limitation was eliminated. The first tier payments will consist of 25% of "new" tax increment (net) of the housing set-aside requirement. "New" tax increment refers only to increases of tax increment above the new base year, which is established at the date of the adoption of this ordinance, but only for the purpose of calculating the amount of a pass-through payments triggered by adoption of this ordinance. On February 17, 2004 the City Council of the City of Colton (the "City Council") introduced the first reading of Ordinance 0-06-04, which amended the time frames to issue debt in the seven redevelopment project areas. Although the second reading was scheduled for March 2, 2004, it RVPUB\MXM\669729.1