City of Long Beach - File #: 11-0767

• File #: 11-0767
• Version: 2
• Name: DS - RDA Intent to participate in Volutary Program
• Type: Emergency Ordinance
• Status: Adopted
• File created: 7/25/2011
• In control: City Council
• On agenda: 8/16/2011
• Final action: 8/16/2011
• Title: Recommendation to declare ordinance determining it will comply with the Voluntary Alternative Redevelopment Program pursuant to Part 1.9 of Division 24 of the California Health and Safety Code in order to permit the continued existence and operation of the Redevelopment Agency of the City of Long Beach, California; declaring the urgency thereof; and declaring that this ordinance shall take effect immediately, read and adopted as read. (Ordinance No. ORD-11-0016) (Citywide)
• Sponsors: Development Services

Date	Ver.	Action By	Action	Result
8/16/2011	2	City Council	declare ordinance read and adopted as read	Pass
8/9/2011	1	City Council	approve recommendation to declare an emergency to exist	Pass
8/9/2011	1	City Council	approve recommendation to declare Emergency Ordinance No. ORD- , read, and adopted as read and laid over to the next regular meeting of the City Council for final reading	Pass

TITLE
Recommendation to declare ordinance determining it will comply with the Voluntary Alternative Redevelopment Program pursuant to Part 1.9 of Division 24 of the California Health and Safety Code in order to permit the continued existence and operation of the Redevelopment Agency of the City of Long Beach, California; declaring the urgency thereof; and declaring that this ordinance shall take effect immediately, read and adopted as read. (Ordinance No. ORD-11-0016) (Citywide)

DISCUSSION
On June 29, 2011, Governor Jerry Brown signed the California State Budget, including Assembly Bills 1X 26 and 1X 27 (ABX 26 and ABX 27). These two bills went into immediate effect, significantly modifying the California Community Redevelopment Law.

ABX 26

ABX 26 suspends all new redevelopment activities by restricting redevelopment agencies’ authority to incur new debt by adopting new or modifying existing obligations, to dispose of or acquire assets, or to prepare environmental impact reports, among other activities. ABX 26 also prescribes the steps redevelopment agencies must follow to wind down their activities in anticipation of their dissolution as of October 1, 2011, including preparation of an enforceable obligations schedule. (An enforceable obligation is generally defined as debt service on bonds or a third-party contract.) ABX 26 specifically excludes loan agreements and asset transfers between the City and the Agency as enforceable obligations, thereby voiding such agreements. After October 1, 2011, successor agencies and oversight boards would commence the redistribution of redevelopment agencies’ assets.

ABX 27

ABX 27 establishes an alternative voluntary redevelopment program (Voluntary Program) that exempts participating redevelopment agencies from the provisions of ABX 26, including nullification of City and Agency agreements. To participate in the Voluntary Program, the legislative body of the community (e.g., the Long Beach City Council) m...