Res 97-008RESOLUTION NO. 97-008
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY
APPROVING EXPENDITURES FOR PUBLIC IMPROVEMENTS
PURSUANT TO AN OWNER PARTICIPATION AGREEMENT BY AND
BETWEEN THE POWAY REDEVELOPMENT AGENCY AND McMILLIN
4S BUSINESS PARK, INC. AND MAKING CERTAIN FINDINGS IN
CON2NECTION THEREWITH
WHEREAS, the Poway Redevelopment Agency (the "Agency") is a community
redevelopment agency organized and existing under the Community Redevelopment Law,
California Health and Safety Code Sections 33000, et seq. (the "CRL") and has been authorized
to transact business and exercise the powers of a redevelopment agency pursuant to action of the
City Council of the City of Poway (the "City Council"); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out
the Redevelopment Plan for the Paguay Redevelopment Project (the "Redevelopment Plan" and
the "Project Area'' respectively) which was adopted by the City Council pursuant to Ordinance
No. 117 and therea~er amended by Ordinance Nos. 415 and 439; and
WHEREAS, the Agency has issued the $104,710,000 Poway Redevelopment .agency,
Pagaay Redevelopment Project, Subordinated Tax Allocation Refunding Bonds, Series 1993 and
the $21,595,000 Poway Redevelopment Agency, Paguay Redevelopment Project, Tax Allocation
Refunding Bonds, Series 1990A (collectively, the "Existing Senior Lien Bonded Indebtedness");
WHEREAS, the Agency and McMillin 4S Business Park, Inc. (the "Participant") propose
to enter into an Owner Participation Agreement (the "OPA") with regard to a certain parcel of
real property located within the Project Area comprising approximately one hundred seventy
three and one-half (173%) acres of what is generally known as Phase II of the Parkway Business
Centre (the "Site"); and
WltEREAS, the Site is 'also located within the boundaries of Community Facilities
District No. 88-1 of the City of Poway ("CFI) No. 88-1"); and
SVItEREAS, CFD No. 88-1 has issued the $30,000,000 City of Poway Co~nmunity
Facilities District No. 88-1 Special Tax Bonds, Series 1989 CParkway Business Centre") and the
$8,000,000 City of Poway Community Facilities District No. 88-1 Special Tax Bonds, Series
1990 CParkway Business Centre") (collectively, the "Clad Bonds") in order m fund the
development of certain public improvements within the territory of CFD No. 88-1; mad
WHEREAS, CFI) No. 88-1 has levied special taxes against properties within the
boundaries of CFD No. 88-1, ~.nciuding the Site, in order to pay debt service on the CI~O Bonds;
and
Pt~BL:47268_! i 424 ! 2~345.0~3 ! 6
Resolution No. 97-008
Page 2
WHEREAS, certain special taxes levied against the Site are delinquent and litigation has
been commenced (the "Litigation") in order to foreclose upon the special tax lien and cure the
delinquency; and
WHEREAS, pursuant to the OPA, the Agency intends to provide certain assistance to the
Participant (the "Agency Assistance") in order to facilitate the settlement of the Litigation and to
ensure the construction of certain on-site and off-site pubic improvements by the Participant
pursuant to the OPA; and
WHEREAS, Section 33445 of the CRL, authorizes the Agency, with the consent of the
City Council of the City and upon making certain determinations to pay all or part of the value of
and cost of the installation of any building, facility, structure, or other improvement which is
publicly owned either within or without the Project Area; and
WHEREAS, the Agency is authorized pursuant to Section 33444.6 of the CRL to assist
with the financing of facilities or capital equipment within a project area as part of an agreement
that provides for the development or rehabilitation of property that will be used for industrial or
manufacturing purposes upon the making of certain findings; and
WHEREAS, the Agency's financing of the costs of the public improvements pursuant to
the OPA is of benefit to the Project Area and the surrounding development, and is necessary to
effectuate the purposes of the Redevelopment Plan by assisting the Agency in the elimination of
blight in the Project Area, increasing economic activity, increasing employment opportunities
within the Project Area and providing an environment for the social, economic and psychological
growth and well-being of the citizens of the City; and
WIIEREAS, there are no other reasonable means of financing the cost of the construction
and installation of the public improvements available to the community, in particular general fund
and capital funds of the community are already committed to other public programs, projects, and
purposes; and
WHEREAS, the Agency's financing of the costs of the public improvements pursuant to
the OPA will assist in the elimination of blight by providing for much needed infrastructure
improvements in the Project Area and is consistent with the Redevelopment and Housing
Implementation Plan (the "Implementation Plan") adopted by the Agency pursuant to CRL
Section 33490 as an explicit priority of the Implementation Plan is the funding, construction, and
completion of projects which will remedy blighting conditions including inadequate infrastructure;
and
WHEREAS, the Participant has represented to the Agency that the provision of the
Agency Assistance is necessary for the economic feasibility of the development and such
assistance cannot be obtained on economically feasible terms in the private market; and
WHEREAS, on January 28, 199 7, the City Council and the Agency held a duly noticed
.joint public hearing on the proposed Agreement in accordance with the requirements of CRL
Section 33444.6, at which time the City Council reviewed and evaluated the staff report, the
proposed OPA and all comments for and against the OPA; and
PUI~L:47268_l 1424122345.0016 2
Resolution No. 97- 008
Page 3
WHEREAS, an environmental impact report and a subsequent environmental impact
report on the South Poway Planned Community, which includes the Parkway Business Centre
development project were approved by the City in accordance with the provisions of the
California Environmental Quality Act, Public Resources Code Sections 21000, er seq. CCEQA")
on July 30, 1985 and August 2, 1988, respectively, which fully analyzed any potential impact of
the construction and installation of the public improvements pursuant to the OPA and therefore,
pursuant to Section 15061 of the CEQA Guidelines, 14 California Code of Regulations,
Sections 15000, et seq., the OPA is exempt from the provisions of CEQA; and
WHEREAS, the expenditure pursuant to the OPA is in the best interest of the City and
the health, safety and welfare of its residents, and is in accord with the public purposes and
provisions of applicable state and local laws and requirements under which the Paguay
Redevelopment Project and its Redevelopment Plan have been undertaken.
NOW, THERI
HEREBY RESOLVE
Section 1. The
and the construction an,
FORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES
ORDER AND DETERMINE AS FOLLOWS:
City Council hereby finds that the provision of the Agency Assistance
installation of the public improvements pursuant to the OPA and the
approval of the OPA is exempt from the provisions of the California Environmental Quality Act,
California Public Resot'rces Code Section 21000, et seq.
Section 2. The City Council finds and determines that based upon substantial
evidence in the record before it that the public improvements to be constructed and installed
pursuant to the OPA are of benefit to the Project Area.
Section 3. The City Council finds and determines that based upon substantial
evidence in the record before it that no other reasonable means of financing such public
improvements are available to the community.
Section 4. The City Council finds and determines that based upon substantial
evidence in the ~ecord before it that the payment of funds for such public improvements will
assist in the elimination of one or more blighting conditions within the Project Area and is
consistent with the adopted implementation plan.
Section $. The .City Council hereby finds and determines based upon substantial
evidence in the record before it that the provision of the Agency Assistance pursuant to the OPA
(i) is necessary roi' [the economic feasibility of the development, and (ii) cannot be obtained on
economically feas~le terms in the private market.
Sect~0n 6. The City Council hereby consents to the Agency's approval of the OPA.
I
Section 7. ~ The City Clerk is hereby directed to file a notice of exemption pursuant to
the California Env~onmental Quality Act with the Clerk of the County of San Diego.
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Resolution No. 97- 008
Page 4
PASSED, APPROVED AND ADOPTED by the City Council of the City of Poway at
a regular meeting this 28th day of January, 1997.
ATTEST:
Don Higginson, May&lO
Marjori~. Wahlsten, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
I, Marjorie K. Wahlsten, City Clerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 97- 008 was duly adopted by the City
Council at a meeting of said City Council held on the 28th day of January, 1997, and that it was
so adopted by the following vote:
AYES: CAFAGNA, EMERY,
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
GOLDBY,
REXFORD, HIGGINSON
Marjo~I<. Wahlsten, City Clerk