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
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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 ` �-�-�-�-�
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Bruce Tarzy� �
Chair
ATTEST:
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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
_ �
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Sheil . Cobian, CMC, Secretary
Successor Agency to the
Poway Redevelopment Agency