TITLE
Recommendation to authorize City Manager to execute an Amended and Restated Agreement for Services between the City of Long Beach and the Redevelopment Agency to encumber approximately $886,000,000 in current and future redevelopment tax increment proceeds through Fiscal Year 21 to support revitalization of neighborhoods throughout seven redevelopment project areas; and
Adopt resolution making certain findings regarding the construction of certain public improvements in all Redevelopment Project Areas with the exception of West Beach. (Citywide)
DISCUSSION
Approval is recommended to amend the Agreement for Services (Agreement) with the Long Beach Redevelopment Agency (Agency) to provide short-term loans for services, programs and projects in seven redevelopment project areas for ten years.
California Community Redevelopment Law specifies that a redevelopment agency may not spend tax increment directly on staff salaries, consultants or other services; as a general rule, its use is limited to the payment of principal and interest on bonds, loans, and other forms of indebtedness. Agencies then borrow from cities the funds required for operating expenses on an annual basis, which provide for staff and project expenses. Tax increment is used to repay the City loan, debt service on bonds, and other long-term obligations.
The Agency and the City have an existing Agreement for Services, established in 1987 and last amended in 2003, which establishes such a mechanism. The Agreement allows the Agency to borrow from the City funds needed for annual expenses, and to repay the City with tax increment before the end of each fiscal year. The City also agrees to fund the Agency's activities based on an annual request; in the past, the funding request would come to the City Council as part of the annual budget process.
Due to the nature of the development process, the Agency currently has numerous projects in various stages of development, from pre-conception to actu...
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