TITLE
Recommendation to adopt resolution designating the City of Long Beach as the Successor Agency to the Redevelopment Agency of the City of Long Beach and transferring all housing functions and assets from the Redevelopment Agency of the City of Long Beach to the City of Long Beach, each effective as of February 1, 2012; and
Direct City Manager to establish a Community Improvement Commission and return to City Council with the implementation ordinances. (Citywide)
DISCUSSION
On December 29, 2011, the California State Supreme Court (Court) issued its decision in California Redevelopment Association v. Matosantos. The Court found AB1X26 (ABX26) constitutional, thus dissolving all redevelopment agencies throughout the State, and AB1X27 (allowing redevelopment agencies to continue with voluntary payments to the State) unconstitutional. The Court also delayed by four months certain deadlines in ABX26 that occur prior to May 1, 2012. The Court's decision is immediately effective.
Based on the revised schedule, the Redevelopment Agency of the City of Long Beach (Redevelopment Agency) will be dissolved as of February 1, 2012. ABX26 suspends all new redevelopment activities after June 2011. ABX 26 also prescribes the steps the Redevelopment Agency must follow to wind down its activities in anticipation of its dissolution, such as preparing an enforceable obligations schedule (an "Enforceable Obligation" is generally defined as debt service on bonds or a pre-existing third-party contract) and preserving its assets. The Successor Agency, which must be formed as of February 1, 2012, and an oversight board are responsible for managing Enforceable Obligations and for redistributing Redevelopment Agency assets to the various taxing entities such as the school district, the County and other entities that receive property tax.
ABX 26 designates the community sponsoring the redevelopment agency (Sponsoring Community) as the "Successor Agency" unless that Sponsoring Commun...
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