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RDA RES 1997-020 RESOLUTION NO. RDA 97-20 A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY MAKING DETERMINATIONS WITH RESPECT TO PAYMENT BY THE AGENCY OF ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF LANDSLIDE ABATEMENT IMPROVEMENTS AND APPROVING THE RETURN TO LOS ANGELES COUNTY OF $1 MILLION OF BOND PROCEEDS RECITALS: A. The City Council of the City of Rancho Palos Verdes (the "City") has adopted a redevelopment plan (the "Redevelopment Plan") for Project Area No. 1 (the "Project Area") of the Rancho Palos Verdes Redevelopment Agency (the "Agency") . The Project Area suffers from earth movement which has resulted in blighted conditions in the Project Area. B. The City, the County of Los Angeles (the "County") and the Agency have entered into a settlement to resolve certain litigation that was pending between the parties. The settlement was memorialized in a document entitled "Reimbursement and Settlement Agreement" (the "Reimbursement Agreement") dated October 13, 1987. C. Pursuant to the Reimbursement Agreement, in 1990 the County formed an Assessment District (CI 2651-M) (the "Assessment District") in the City, which Assessment District includes property within the Project Area, and levied assessments in the principal amount of $10, 000, 000 which assessments are secured by liens on the parcels within the Assessment District. The County issued an assessment bond (the "County Bond") which was purchased by the County Treasurer and which was issued in the principal amount of $10, 000,000 representing the unpaid assessments. The bond proceeds were transferred to the Agency to pay for improvements (the "Improvements") to abate the Abalone Cove landslide, some of which already have been constructed, and some of which remain to be approved and constructed by the Agency. All of said Improvements have been approved by the Abalone Cove Panel of Experts, in accordance with the provisions of the Reimbursement Agreement. D. Pursuant to the Reimbursement Agreement, the assessment payments were deferred for ten years after the bonds were sold (i.e. , until 2001) . It was anticipated that, based on increases in assessed valuation of the property within the Project Area, the tax increment revenues generated in the Project Area would be sufficient to pay the assessments and the property owners in the Assessment District would not be required to pay the assessments after the end of the ten-year deferral period. However, due to economic recession and other factors, the anticipated increase in the assessed valuation did not occur. 971107 R6876-00001 syc 0321588 1 E. Payment of the assessments would result in severe hardship to the owners of the properties securing the assessments. Therefore, the County, the City and the Agency have entered into an agreement entitled Memorandum of Understanding, ("the MOU") dated November 1, 1997, which provides for the cancellation of the assessment liens so that the property owners in the Assessment District will not be further burdened by the assessments. F. In order to alleviate the burden on the property owners in the Project Area, the Agency desires to pay all or a part of the cost of the installation and construction of the Improvements in accordance with the MOU by refinancing the County Bond. G. The Agency also has determined that based on current financial estimates and cost projections, the estimated cost of constructing all of the projects that have been approved by the Abalone Cove Panel of Experts exceed the funds which are estimated to be available to the Agency from the proceeds of the County Bond. Therefore, it is not reasonably likely that all of the projects can be constructed. Accordingly, the Agency hereby determines that it is preferable to return $1 million of the County Bond proceeds to the County because those funds are not necessary to perform the Improvements which the Agency believes are reasonably likely to be constructed. NOW, THEREFORE, THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, at seq. ) , and in particular Section 33445 thereof, the Agency proposes to pay for all or a part of the cost of the installation and construction of the Improvements in accordance with the Reimbursement Agreement and the MOU. The Improvements will serve the residents and property owners of the Project Area. The Redevelopment Plan for the Project Area and the accompanying Report to City Council document, and this Agency has heretofore determined, that the Project Area is a blighted area which constitutes physical and economic liabilities, requiring redevelopment in the interest of the health, safety and general welfare of the people of the City. The Redevelopment Plan provides for the Agency to undertake actions to abate geologic hazards existing in the Project Area, including the stabilization of earth movement and the repair of damage due to continued slide activity. The Improvements serve a basic purpose of redevelopment which includes the provision of structures as may be appropriate or necessary in the interest of the general welfare and assist in the elimination of conditions of blight within the Project Area 971107 R6876-00001 syc 0321588 1 - 2 - RESOL. NO. RDA 97-20 which are caused by inadequate public improvements. The provision of needed infrastructure promotes safe housing. Section 2. As set forth in paragraph E of the Recitals hereof, the payment of the assessments would result in severe I/ hardship to the owners of the properties securing the assessments and require refinancing by the Agency to provide relief to the property owners. Such refinancing could not be achieved by any other reasonable means. While the City will contribute a portion of the cost of the Improvements, the budget constraints of the City prevent the City from completely financing or refinancing the Improvements from its general revenues. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirement. The burdens on property owners from assessments or special taxes are too great and have caused the City, the Agency and the County to enter into the MOU. Section 3 . The Agency hereby finds and determines that based upon the foregoing and other information presented to it: (a) the Improvements are of benefit to the Project Area, (b) the payment of funds for all or a part of the cost of the Improvements will assist in the elimination of blighting conditions inside the Project Area by remedying the lack of adequate infrastructure and providing relief to the property owners, (c) the payment of funds for all or a part of the cost of the Improvements is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490, dated November 18, 1994; and (d) no other reasonable means of refinancing the Improvements are available to the City. Section 4. The Agency hereby approves payment for all or a part of the cost of the Improvements in accordance with the MOU. Section 5. The Agency hereby approves the return of $1 million of proceeds of the County Bond to the County because said funds are not deemed necessary to the performance of the Improvements that the Agency has determined in its sole discretion are reasonably likely to be constructed. 971107 R6876-00001 syc 0321588 1 - 3 - RESOL. NO. RDA 97-20 PASSED, APPROVED and ADOPTED this 18th day of November, 1997 . III AYES: FERRARO, BYRD, HOLLINGSWORTH, LYON AND CHAIR McTAGGART NOES: NONE ABSENT: NONE I/ ABSTAIN: NONE 0 / , / 0 21 ' i 1.r1:rAi hr• Chaff Of Attest: .- s Act ncy Secretary ate of California ) County of- Los Angeles ) SS City of Rancho Palos Verdes ) I, JO PURCELL, Agency Secretary of the Rancho Palos Verdes Redevelopment Agency hereby certify that the above Resolution No. III RDA 97-20 was duly and regularly passed and adopted by the said Redevelopment Agency at an adjourned regular meet3ng thereof held on November 18, 1997. f. Y L/ CC___ (u ) j gency Secretary I II 971107 R6876-00001 syc 0321588 1 - 4 - RESOL. NO. RDA 97-20