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HomeMy WebLinkAbout1088 ura debt and repaymentORD]:NANCE NO. 108~ AN ORDZNANCE OF THE CZTY COUNCXL OF THE CZTY OF UKIAH ELIMINATZNG THE TTME LIMI'T ON INCURRZNG DEBT AND EXTENDZNG THE T/ME LTMI'rATTON FOR THE EFFECTZVENESS OF THE REDEVELOPMENT PLAN AND THE REPAYMENT OF DEBT FOR THE UKZAH REDEVELOPMENT PRO3ECT The City Council of the City of Ukiah hereby ordains as follows. SECTZON ONE. FTNDZNGS. 1. The City Council adopted Ordinance No. 895 on November 15, 1989, approving and adopting the Redevelopment Plan (the "Redevelopment Plan") for the Ukiah Redevelopment Project (the "Project"). 2. The Ukiah Redevelopment Agency (the "Agency") has been designated as the official redevelopment agency in the City of Ukiah to carry out the functions and requirements of the Community Redevelopment Law of the State of California (Health and safety Code Section 33000 et seq.) and to implement the Redevelopment'Plan. 3. On December 16, 1998, the Ukiah Redevelopment Agency adopted URA Resolution No. 99-1, amending the Redevelopment Plan to limit the Agency's ability to incur new debt to twenty (20) years from the date of adoption of the Redevelopment Plan,-which would be November 15, 2009. 4. Section 33333.6 of the Health and Safety Code, which was amended by SB 211 and took effect on ~lanuary 1, 2002, authorizes redevelopment agencies to eliminate the time limit on the establishment of loans, advances, and indebtedness contained in redevelopment plans adopted before December 31, 1993. 5. Section 33681.9 of the Health and Safety Code, which was added by SB 1045 and took effect on September '1, 2003, required the Agency during the 2003-04 fiscal year to make a payment for deposit in Mendocino County's Educational Revenue Augmentation Fund (an "ERAF Payment"). 6. Section 33333.6 of the Health and Safety Code, which was amended by SB 1045 'to add subsection (e)(2)(C), provides that when an agency is required to make a payment pursuant to Section 33681.9, the legislative body may amend the redevelopment plan by ordinance to extend by one year the time limit of the effectiveness of the plan and the time limit to repay indebtedness. 7. Pursuant to Health and Safety Code Section 33681.9, the Agency was required to make an ERAF payment for the fiscal year 2003-04. 8. The existing time limit on the effectiveness of the Redevelopment Plan, as set forth in Section 800 of the Redevelopment Plan, is November 15, 2029 (40 years from the date of adoption of the Redevelopment Plan) and the existing limit on the cumulative amount of tax increments that the Agency may be allocated is $260 million. SECTION TWO. CONTENTS OF ORDI'NANCE Section 1. The Redevelopment Plan for the Ukiah Redevelopment Project is hereby amended' to eliminate the time limit on the establishment of loans, advances, and indebtedness contained in Section 502 of the Redevelopment Plan and previously amended by URA Resolution No. 99-1. Section 2. A. In accordance with Section 33333.6(e)(2)(C) of the Health and Safety Code, the time limit on the effectiveness of the Redevelopment Plan, as set forth in Section 800 of the Redevelopment Plan, currently scheduled to terminate on November 15, 2029 shall be extended by one year. Based upon such extension, the effectiveness of the Redevelopment Plan shall terminate on November 15, 2030. B. In accordance with Section 33333.6(e)(2)(C) of the Health and Safety Code, except for loans and indebtedness approved or incurred prior to December 31, 1993, the Agency shall not pay indebtedness or receive property taxes pursuant to Health and Safety Code Section 33670 at, er ten (10) years from the termination of the effectiveness of the Redevelopment Plan. Based upon the termination date established in Subsection 2.A. of this Ordinance, the Agency shall not pay indebtedness or. receive property taxes pursuant to Section 33670 after November 15, 2040; provided, however, that any loans or other indebtedness approved or incurred by the Agency prior to December 31, 1993, to finance the Project, may be repaid in accordance with .the terms relating to such indebtedness, and the Agency may receive property tax increments after November 15, 2040, to repay such debt accordingly. SECTION THREE. t41'SCELLANEOUS 1. SEVERABILITY.. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adOpted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 2. EFFECT ON ORDINANCE NO. 895. OrdinanCe No. 895 is continued in full force and effect except as amended by this Ordinance. 3. DIRECTION TO Cl-rY CLERK. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. 4. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by title only on November 15, 2006, by the following roll call vote: 968762vl 04513/0001 AYES: NOES: ABSENT: ABSTAIN: COUNCILMEMBER CRANE, MCCOWEN, RODIN, BALDWIN AND MAYOR ASHIKU NONE NONE NONE Adopted on November 27, 2006 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: COUNCILMEMBER CRANE, MCCOWENi RODIN, BALDWIN AND MAYOR ASHIKU NONE NONE NONE ]~a~k As-hiku, Mayo~ A'I-rEST: '~rail Petersen, City Clerk 968762v 1 04513/0001