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OSB 13-003 RESOLUTION NO. OSB-13-003 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE POWAY REDEVELOPMENT AGEIVCY APPROVIIVG AND RATIFYING PREVIOUS ACTIOiVS OF THE POWAY REDEVELOPMENT AGENCY TRANSFERRING THE SMITH SETTLEMENT FUND AND OBLIGATIONS UNDER THE SMITH JUDGMENT TO THE CITY OF POWAY AND APPROVING THE SUBSEQUEIVT TRANSFER OF THE SMITH SETTLEMENT FUND AND OBLIGATIOIVS UIVDER THE SIVIITH JUDGIVIENT FROM THE CITY OF POWAY TO THE POWAY HOUSING AUTHORITY WHEREAS, the City Council of the City of Poway ("City Council") adopted the Redevelopment Plan for the Paguay Redevelopment Project Area (the "Project Area") on December 13, 1983 by Ordinance IVo. 117, as amended by Ordinance No. 415 on June 15, 1993, Ordinance No. 439 on December 13, 1994, Ordinance No. 593 on December 2, 2003, Ordinance IVo. 605 on August 3, 2004, Ordinance No. 611 on October 26, 2004, Ordinance No. 641 on July 18, 2006, and Ordinance No. 657 on June 12, 2007 (the "Redevelopment Plan"); and WHEREAS, an action was filed in Superior Court of the County of San Diego (Smith v. All Persons Interested in the Nlatter of the Validitv of the Amendment to the Redevelopment Plan for the Paquay Redevelopment Proiect Area, Case No. 667691) challenging the 1993 amendment to the Redevelopment Plan, which action named the City of Poway and the Poway Redevelopment Agency as defendants; and WHEREAS, a judgment in the case was filed on January 26, 1995 ("Smith Judgment") pursuant to a Stipulation Re Judgment filed on October 20, 1994; and WHEREAS, the Smith Judgment required the Poway Redevelopment Agency to allocate 2% of its gross tax increment funds beginning in fiscal year 2000-2001 ("Smith Settlement Fund") for distribution to non-profit housing entities for specified housing uses; and WHEREAS, the City of Poway and the Poway Redevelopment Agency entered into an Amended and Restated Cooperation Agreement dated IVlarch 11, 2011 ("Cooperation Agreement") to provide for the City's implementation of certain redevelopment projects and programs described therein, including the housing activities required by the Smith Judgment; and WHEREAS, in furtherance of the City's obligations under the Cooperation Agreement, on IVlarch 11, 2011 by Resolution No. R-11-07 the Poway Redevelopment Agency transferred to the City all of the Redevelopment Agency's rights, interests and obligations under the Smith Judgment and the Smith Settlement Fund; and Resolution iVo. OSB-13-003 Page 2 WHEREAS, the City has administered the Smith Settlement Fund pursuant to the City's obligations as a defendant in the Smith Judgment and to fulfill the Poway Redevelopment Agency's obligations under the Smith Judgment; and WHEREAS, by operation of Assembly Bill No. 26 (2011-2012 1St Ex. Sess.) as amended by Assembly Bill IVo. 1484 (2011-2012 Regular Session) (collectively, the "Dissolution Act"), the Poway Redevelopment Agency was dissolved on February 1, 2012; and WHEREAS, pursuant to the Dissolution Act, on January 17, 2012 the City Council of the City of Poway elected to be the Successor Agency to the Poway Redevelopment Agency (the "Successor Agency"), which is a legal entity that exists separate and independent of the City of Poway; and WHEREAS, pursuant to the Dissolution Act, on January 17, 2012 the City Council of the City of Poway designated the Poway Housing Authority as the entity responsible for performing the housing functions previously performed by the Poway Redevelopment Agency and the Housing Authority accepted its designation as the entity that will perform the housing functions previously perFormed by the Poway Redevelopment Agency; and WHEREAS, on February 1, 2012 all assets, properties, contracts, leases, books and records, buildings and equipment of the Poway Redevelopment Agency transferred by operation of law to the control of the Successor Agency for administration pursuant to the Dissolution Act; and WHEREAS, Section 34179.6 of the Dissolution Act required the Successor Agency to submit to the California Department of Finance ("DOF") a Due Diligence Review ("DDR") to identify the Successor Agency funds that are available for distribution to the taxing agencies; and WHEREAS, DOF's review of the DDR determined that the Smith Settlement Fund was restricted by the terms of the Smith Judgment and was not available for distribution to the taxing agencies but that the Smith Settlement Fund should be returned to the Successor Agency for administration; and WHEREAS, Section 34177(g) of the Dissolution Act requires the Successor Agency to effectuate the transfer of the housing functions and assets of the Poway Redevelopment Agency to the Poway Housing Authority and with the exception of the Smith Judgment and the Smith Settlement Fund held by the City, those housing functions and assets have been transferred to the Housing Authority; and WHEREAS, Section 34176(b) of the Dissolution Act requires all assets associated with the housing activities of the Poway Redevelopment Agency, except for amounts in the Low and Moderate Income Housing Fund ("LMIHF"), to be transferred to the Poway Housing Authority in its capacity as housing successor; and WHEREAS, the Smith Settlement Fund comprises an allocation of gross tax increment that was in addition to the 20% of gross tax increment that the Poway Resolution No. OSB-13-003 Page 3 Redevelopment Agency was required by California Community Redevelopment Law (Health & Safety Code §§33000, et seq.) to deposit in its LMIHF; and WHEREAS, the Smith Settlement Fund was not required to be deposited in the LMIHF and has been continuously maintained in a separate account from the LMIHF and thus is excluded from the housing assets to be retained by the Successor Agency; and WHEREAS, in furtherance of Section 34177(g) of the Dissolution Act, the City Council of the City of Poway adopted Resolution No. 13-027 transferring to the Poway Housing Authority the Smith Settlement Fund and assigning to the Housing Authority the Poway Redevelopment Agency's obligations under the Smith Judgment for administration by the Housing Authority in its capacity as the housing successor to the Poway Redevelopment Agency; and WHEREAS, the Poway Housing Authority adopted Resolution No. H-13-01 accepting from the City the transfer of the Smith Settlement Fund and the assignment of the Poway Redevelopment Agency's obligations under the Smith Judgment; and WHEREAS, the transfer of the Smith Settlement Fund and the assignment of the Poway Redevelopment Agency's obligations under the Smith Judgment to the Poway Housing Authority is mandated by the Dissolution Act, will accomplish the public purposes of implementing the Redevelopment Plan, increasing, improving and preserving the community's supply of affordable housing and carrying out the terms of the Smith Judgment; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE the Oversight Board of the Successor Agency to the Poway Redevelopment Agency does hereby resolve as follows: Section 1. The Oversight Board hereby finds and determines that the foregoing recitals are true and correct. Section 2. The Oversight Board has received and heard all oral and written objections to matters pertaining to this transaction, and all such oral and written objections are hereby overruled. Section 3. A duly noticed public meeting having been held, the Oversight Board hereby adopts, approves, ratifies and confirms all actions taken by the former Poway Redevelopment Agency and by the staff of the Redevelopment Agency to implement and carry out the transfer to the City of Poway of the Smith Settlernent Fund and the Redevelopment Agency's obligations under the Smith Judgment and approves all actions taken by the City and the Poway Housing Authority and their respective staff to implement and carry out the transfer of the Smith Settlement Fund and the assignment of the Redevelopment Agency's obligations under the Smith Judgment from the City to the Housing Authority. Resolution IVo. OSB-13-003 Page 4 Section 4. The Successor Agency to the Poway Redevelopment Agency is hereby authorized and directed to take all reasonable and necessary actions and sign on behalf of the Oversight Board all reasonable and necessary documents and instruments first approved in writing by the Successor Agency Counsel to finalize the transfer of the Smith Settlement Fund and the assignment of the Poway Redevelopment Agency's rights and obligations under the Smith Judgment and the Successor Agency's rights and obligations under the Smith Judgment to the Poway Housing Authority. Section 5. This Resolution shall take effect immediately upon its adoption. PASSED, ADOPTED and APPROVED by the Oversight Board of the Successor Agency to the Poway Redevelopment Agency at a regular meeting this 21St day of August, 2013. ,r ` �-�-�-�-� � Bruce Tarzy� � Chair ATTEST: _. ����Sz--�. Sheila R. Cobian, CMC, Secretary Successor Agency to the Poway Redevelopment Agency Resolution IVo. OSB-13-003 Page 5 STATE OF CALIFORNIA ) ) COUNTY OF SAN DIEGO ) I, Sheila R. Cobian, CIViC, Secretary, Successor Agency to the Poway Redevelopment Agency, do hereby certify under penalty of perjury that the foregoing Resolution No. OSB-13-003 was duly adopted by the Oversight Board of the Successor Agency to the Poway Redevelopment Agency at a meeting of said Oversight Board held on the 21St day of August, 2013 and that it was so adopted by the following vote: AYES: FONG-SAKAI, LADERMAIV, LYOIV, SCOTT, TAM, THOLANDI, TARZY IVOES: NONE ABSEIVT: NOIVE DISQUALIFIED: NONE _ � � Sheil . Cobian, CMC, Secretary Successor Agency to the Poway Redevelopment Agency