AgdaPkt 2011-09-12 - Laserfiche WebLink

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6.3.A. - Page 2 On July 18, 2011, the California Redevelopment Association, the League of California Cities and others filed a Petition for Writ of Mandate in the Supreme Court of the State of California (California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. 5194861), challenging the constitutionality of the companion bills, the Dissolution Act and the Voluntary Program Act, on behalf of cities, counties and redevelopment agencies, and requesting a stay of their enforcement. A partial stay of enforcement of the companion bills has been granted by the California Supreme Court and later modified. The partial stay continues to prohibit RDAs from taking on any new obligations or engaging in any RDA activities (other than meeting prior enforceable obligations) on or after the effective date of the companion bills, but in an abundance of caution, it is recommended that the City continue to take certain actions to comply with the Voluntary Program Act and to ensure that the Redevelopment Agency of the City of Redwood City ( "Agency ") remains in existence, should the stay be lifted and the companion bills be upheld as valid and constitutional. In order to protect the City, the proposed ordinance, agreement and resolution all preserve the City's right to challenge the legality of the Dissolution Act and Voluntary Program Act, provide that the ordinance, agreement and resolution will not be effective until the court stay is lifted, and states that any Remittance payment will be made under protest. The City will not be obligated to make any Remittance for the duration of the stay; nor will the Agency have any obligation to provide any portion of tax increment to the City for any Remittance. Additionally, if the Dissolution Act and Voluntary Program Act are invalidated by the court, the ordinance will be invalidated and the resolution and agreement will be ineffective. Once the court stay is lifted, the suspension is lifted and the City and Agency may take any actions necessary to ensure that the Agency can resume its activities under the current California Redevelopment Law, including ratifying the actions proposed and recommended by this staff report. By adoption of the ordinance, the City elects to participate in the Alternative Voluntary Redevelopment Program, if validated. While the Ordinance commits the City to make the Remittance, the Voluntary Program Act allows the City and the Agency to enter into the Reimbursement Agreement whereby the Agency agrees to transfer a portion of its tax increment revenue to the City, in an amount not to exceed the annual Remittance, so that the City's general fund is not obligated. In addition, for Fiscal Year 2011 -12 only, the Agency is exempted from the 20 percent housing set -aside requirement if the Agency adopts a resolution finding that those funds are necessary to meet its debt obligations, including those under the Remittance Agreement. z