TITLE
Recommendation to adopt resolution finding that the tax increment funding allocated to the North Long Beach Redevelopment Project Area transfer to the Central Long Beach Redevelopment Project Area, for the purpose of increasing, improving and preserving the supply of low- and moderate-income housing, will be of benefit to the North Redevelopment Project Area; and increase the Fiscal Year 2005-2006 budget appropriation in the Central Long Beach Redevelopment Project Area fund (RD 228) by $1.3 million. (Citywide)
DISCUSSION
At the request of the City Council, the Redevelopment Agency (Agency) held a study session on October 17, 2005 to discuss a recommendation identified in the Clarion Study that tax increment funding generated by the Port of Long Beach (Port) be allocated to activities benefiting the entire City. The intent was that $1.3 million in Port-generated funding, received by the North Long Beach Project Area, be used to pay housing set-aside for the Central Long Beach Project Area. By covering the Central Long Beach Project Area's housing obligation, Central would be able to make a loan repayment to the City's General Fund. The additional General Fund revenue could be used to address citywide concerns.
The Redevelopment Agency approved this action at its meeting on October 24, 2005. In addition, the Agency amended its Fiscal Year 2006 budget to reflect the transfer of funds and subsequent payment to the City. The Agency adopted this repayment mechanism for the following reasons:
1. The North Long Beach Project Area does not have any existing debt to the City to allow for a direct repayment;
2. The Central Long Beach Project Area has existing City debt and can make a repayment. It is also a newer project area that can incur debt until 2021. It is anticipated that additional debt can be created within the Central area to maximize receipt of tax increment beyond the project area's termination; and
3. It accomplishes the Clarion recommendation to...
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