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<br />CityCounncilMMemooranddum <br />TTO: HONORAABLE MAYYOR AND CCITY COUNNCILDAATE: July 26, 2011 <br />FFROM:DEVELOPMENT DEEPARTMENNTITEEM NO: <br />WAARDS: ALL <br />SSUBJECT: ORDINANNCE TOOADOOPT THHE VOLLUNTARYALTERRNATIVE <br />REDEVELOPMENTT PROGRAAM IN ORRDER TO ALLOWTHE CONNTINUED <br />EXISTENNCE AND OOPERATIOON OF THEE REDEVELOPMENTT AGENCY OF THE <br />CITY OF RIVERSIDDE <br />I <br />SSSUE <br />he issue bfore the ity Council is the intrduction ad consideation of a Ordinanc (Exhibit <br />TTeeCCoonnrrnnee <br />) required by the Stae Voluntar Alternatie Redevelopment Prgram to ermit the ontinued <br />AAttyvvooppcc <br />existence ad operation of the Rdevelopmnt Agency. <br />nneeee. <br />RRECOMMENNDATION <br />hat the Ciy Council ntroduce,and subsequently adopt, the attached Orinance to continue <br />TTtttdd <br />te existene and opeation of th Redeveloment Agency. <br />hhcrreepp <br />BBACKGROUUND <br />OOn June 229, 2011, GovernorBrown ssigned Asssembly Bill X1 26, which eliminated <br />rdevelopmnt agencies througout the Sate. Effective as of the exeution of te bill, a <br />eeeehhttcchh <br />rdevelopmnt agenc is no loner authoried to tranact any nw business. The bill requires <br />eeeeyyggzzssee <br />rdevelopmnt agencis to identify a succssor in intrest to mnage its issolution. Such a <br />eeeeeeeeeeaadd <br />successorgency wold be regulated by an independnt oversigt board. In anticipation of the <br />aueehh <br />elimination ill that ha been cosidered sice Januay 2011, the City wa designatd as the <br />bbssnnnnrrhssee <br />successoraagency on MMarch 5, 20011. The ddissolutionof the Reddevelopmennt Agency (Agency) <br />becomes efective on ctober 1, 011. <br />ffOO22 <br />t the sae time, overnor Brown signd Assemly Bill X1 27, a Vluntary Aternative <br />AAmmGeebbooll <br />RRedevelopmment Prograam (VARP)), which exxempts a reedevelopmeent agencyy from disssolution if <br />te City adpts an ordnance agreing to th provisions of the VRP. The rimary codition of <br />hhooiieeeesAAppnn <br />cmpliance with Assebly Bill 1 27 is pyment of local fund to offset the State’ budget <br />oommXXaassss <br />shortfall. The initial payment by he City is estimatedto be $19,619,428 with one haf due on <br />ttll <br />Jnuary 15, 2012 and he other hlf due on ay 15, 2012. Therefter, an etimated $,616,336 <br />aattaaMM0aass44 <br />ill be due nnually.he semi-anual payents will b due on Jnuary 15 nd May 1 of each <br />wwaaTTnnmmeeaaaa55 <br />yar and wuld increae or decrase with canges in ax incremnt. Additinally, an icreased <br />eeoosseehhtteeoonn <br />amount wold be due o schools f any new ebt is incrred. The paymentsare an oblgation of <br />uuttiidduuii <br /> <br />