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SB-39 Redevelopment.(1989-1990)

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SB39:v90#DOCUMENT

Senate Bill No. 39
CHAPTER 26

An act to add Section 33670.8 to, to add and repeal Sections 33458.5, 33501.7, and 33670.9 of, to repeal Article 14.2 (commencing with Section 33476) of Chapter 4 of Part 1 of Division 24 of, and to add and repeal Article 14.2 (commencing with Section 33477) of Chapter 4 of Part 1 of Division 24 of, the Health and Safety Code, relating to redevelopment, and declaring the urgency thereof, to take effect immediately.

[ Filed with Secretary of State  July 18, 1990. Approved by Governor  July 18, 1990. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 39, Mello. Redevelopment.
Under the Community Redevelopment Law, a redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in a redevelopment project each year by or for the benefit of a taxing agency after the effective date of the ordinance approving the redevelopment plan, are required to be divided among those taxing agencies and the redevelopment agency according to specified procedures. Existing law requires that portion of taxes required to be allocated to the redevelopment agency be paid to the agency by the county auditor or officer responsible for the payment of taxes into the funds of the respective taxing agencies.
This bill would impose a state-mandated local program by revising those procedures for determining the portion of taxes to be paid to the redevelopment agencies of the Cities of Santa Cruz and Watsonville for certain redevelopment projects which were already approved on or before October 17, 1989.
The bill would also create a state-mandated local program by requiring the redevelopment agency for the City of Watsonville, in claiming an allocation of taxes for the redevelopment project in the City of Watsonville specified in this bill, to consider the economic impact of the allocation on other agencies which have sustained substantial disaster damage, and to negotiate and enter into agreements, as specified, with the County of Santa Cruz to avoid further economic hardship.
The bill would exempt the merger or amendment of certain redevelopment plans of the Cities of Santa Cruz and Watsonville from specified procedures required under the Community Redevelopment Law. The bill would also exempt redevelopment plans for disaster-related projects adopted, amended, or merged by those cities from the provisions of the California Environmental Quality Act, as specified.
Under the Community Redevelopment Law, a redevelopment plan for a project area is required to be adopted in accordance with procedures for the transmittal of the map of the project area to county officials and certain taxing agencies, the creation of a fiscal review committee if the plan utilizes tax increment financing, and the submission by the redevelopment agency to the legislative body of a detailed report on the redevelopment plan. Existing law, as stated above, also specifies the formula required to be used in apportioning the amount of taxes between the redevelopment agency and the taxing agencies under a redevelopment plan utilizing tax increment financing.
This bill would expressly exempt the adoption of a redevelopment plan for an area of the City of Oakland known as West Oakland, as defined, from those procedural requirements. The bill would revise the formula required to be used in apportioning the amount of taxes between the Redevelopment Agency of the City of Oakland and the taxing agencies under that plan. The bill would also exempt the redevelopment plan adopted by the City of Oakland from the provisions of the California Environmental Quality Act. The bill would state that the adoption of this redevelopment plan pursuant to these provisions does not preclude any of the transportation alternatives presently under study by the Department of Transportation for the permanent replacement of the Interstate 880 Cypress viaduct.
The bill would make its provisions operative on July 1, 1990.
The bill would state that its provisions constitute necessary special legislation, based upon specified legislative findings and declarations.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates which do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that no reimbursement shall be made from the State Mandates Claims Fund for costs mandated by the state pursuant to this act, but would recognize that local agencies and school districts may pursue any available remedies to seek reimbursement for these costs.
This bill would declare that it is to take effect immediately as an urgency statute.

The people of the State of California do enact as follows:


SECTION 1.

 Section 33458.5 is added to the Health and Safety Code, to read:

33458.5.
 With respect to amendment of redevelopment plans within the Cities of Santa Cruz and Watsonville, the otherwise applicable provisions of this chapter shall be modified as follows:
(a)  The notice provided for in Section 33452 need be published only once at least 10 days prior to the hearing referred to in that section.
(b)  The requirement of Section 33453 that after agency hearings, if the agency recommends substantial changes affecting the general plan, those changes shall be submitted to the planning commission for its report and recommendation, shall not apply to the amendment of any redevelopment plan which does not involve a change of an applicable zoning ordinance or the granting of a variance therefrom adopted by the Cities of Santa Cruz and Watsonville pursuant to this section.
(c)  The preliminary report required by Section 33344.5 need not be reported and sent to each affected taxing entity and neither the county nor any other affected taxing entity may call for the creation of a fiscal review committee pursuant to Section 33353. However, prior to the adoption of an ordinance amending a redevelopment plan pursuant to this section, the Redevelopment Agency of the City of Santa Cruz and the County of Santa Cruz, and the Redevelopment Agency of the City of Watsonville and the County of Santa Cruz, shall have approved and executed an agreement to alleviate the financial burden or detriment that may be caused by that amendment.
(d)  The provisions of Sections 33347 and 33454 requiring submission of the redevelopment plan to the planning commission for its report and recommendation shall not apply to the amendment of any redevelopment plan adopted by the City of Santa Cruz or the City of Watsonville pursuant to this section.

SEC. 2.

 Article 14.2 (commencing with Section 33476) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code is repealed.

SEC. 3.

 Article 14.2 (commencing with Section 33477) is added to Chapter 4 of Part 1 of Division 24 of the Health and Safety Code, to read:
Article  14.2. Merger of Redevelopment Project Areas in the Cities of Santa Cruz and Watsonville

33477.
 With respect to the merger of redevelopment projects within the Cities of Santa Cruz and Watsonville, the otherwise applicable provisions of this chapter shall be modified as follows:
(a)  Neither the county nor any other affected taxing entity may call for the creation of a fiscal review committee as provided for in this chapter. However, prior to the adoption of an ordinance approving an amendment to a redevelopment plan merging redevelopment project areas pursuant to this section, the Redevelopment Agency of the City of Santa Cruz and the County of Santa Cruz, and the Redevelopment Agency of the City of Watsonville and the County of Santa Cruz, shall have approved and executed an agreement to alleviate the financial burden or detriment that may be caused by any of the merged redevelopment projects.
(b)  The provisions of Section 33458.5 concerning amendments to redevelopment plans shall also apply to any merger carried out under this section.

SEC. 4.

 Section 33501.7 is added to the Health and Safety Code, to read:

33501.7.
 Notwithstanding Section 33500 of the Health and Safety Code, no action attacking or otherwise questioning the validity of a redevelopment plan adopted, amended, or merged in accordance with the provisions of Sections 33458. 5, 33477, and 33670.9 or any of the findings or determinations of the Cities of Santa Cruz, Oakland, or Watsonville or their redevelopment agencies in connection with the adoption, amendment, or merger, shall be brought prior to the adoption of the plan, or the approval of the amendment or merger of the project area or at any time after 30 days after the date of approval of the ordinance adopting or amending the plan.

SEC. 5.

 Section 33670.8 is added to the Health and Safety Code, to read:

33670.8.
 (a)  With respect to the allocation of taxes pursuant to Section 33670 in redevelopment project areas within the incorporated City of Santa Cruz, which were already approved on October 17, 1989, the otherwise applicable provisions of this part shall be modified as specified in this subdivision.
For the purpose of determining the portion of taxes to be paid annually to the Redevelopment Agency of the City of Santa Cruz pursuant to Sections 33328, 33670, and 33675 for any redevelopment project which was approved on or before October 17, 1989, “assessment roll ... last equalized” and “base-year assessment roll” mean the last equalized assessment roll determined pursuant to subdivision (a) of Section 33670 reduced by the same amount as the amount of reduction in the current assessment roll determined pursuant to Section 170 of the Revenue and Taxation Code.
(b)  With respect to the allocation of taxes pursuant to Section 33670 in redevelopment project areas within the incorporated City of Watsonville, which were already approved on October 17, 1989, the otherwise applicable provisions of this part shall be modified as specified in this subdivision.
For the purpose of determining the portion of taxes to be paid annually to the Redevelopment Agency of the City of Watsonville pursuant to Sections 33328, 33670, and 33675 for any redevelopment project which was approved on or before October 17, 1989, “assessment roll ... last equalized” and “base-year assessment roll” mean the last equalized assessment roll determined pursuant to subdivision (a) of Section 33670 reduced by the same amount as the amount of reduction in the current assessment roll determined pursuant to Section 170 of the Revenue and Taxation Code.
(c)  In claiming an allocation of taxes pursuant to Section 33675, as adjusted pursuant to subdivision (b), the redevelopment agency of the City of Watsonville shall consider the economic impact of the allocation on other agencies which have sustained substantial disaster damage and shall negotiate and enter into an agreement with the County of Santa Cruz to avoid further economic hardship.
(d)  Within 30 days after receipt of a notice from the Assessor of the County of Santa Cruz establishing the adjustment in the assessment roll pursuant to subdivision (b), the Redevelopment Agency of the City of Watsonville may elect not to be subject to this section by giving written notice of its decision to the County of Santa Cruz. Notwithstanding an election by the Redevelopment Agency of the City of Watsonville not to be subject to this section pursuant to this subdivision, it shall still reimburse the County of Santa Cruz for its cost of revising the property tax assessment rolls and allocations.
(e)  Subdivisions (a) and (b) shall apply to allocation of taxes levied on the 1990 and subsequent equalized assessment rolls, upon the request of the redevelopment agencies of the Cities of Santa Cruz and Watsonville, and those agencies shall reimburse the County of Santa Cruz for its cost of revising the property tax assessment rolls and allocations.
(f)  The county assessor shall certify to the county auditor and the director of finance of each city which includes a redevelopment project subject to this section when the total sum of the assessed value of the taxable property in each redevelopment project subject to this section as shown upon each current year’s equalized assessment roll becomes equal to the total sum of the assessed value of the taxable property in each redevelopment project as shown upon the assessment roll last equalized before October 17, 1989, adjusted by the change in the Consumer Price Index for the San Francisco/Oakland Metropolitan Area between 1989 and the date of the certification pursuant to this subdivision. On the July 1 following the date of certification and each July 1 thereafter, the county assessor shall increase the total sum of the assessed value of the taxable property in each redevelopment project as shown upon the assessment roll adjusted pursuant to subdivision (a) or (b) by 10 percent of the difference between the total sum of the assessed value of the taxable property in each redevelopment project determined pursuant to subdivision (a) of Section 33670 and the total sum of the assessed value of the taxable property in each redevelopment project as adjusted pursuant to subdivision (a) or (b), until the two total assessed values are equal, and shall report this adjusted value to the county auditor or other county officials charged with the responsibility of allocating taxes pursuant to Sections 33670 and 33675, who shall use this assessed value in determining the portion of taxes to be paid annually to the redevelopment agency subject to this section.
For purposes of this subdivision only, in the event that any redevelopment project area within the incorporated area of the City of Santa Cruz already approved on October 17, 1989, is amended to add territory to the project area, the assessed value of taxable property in the territory added shall be computed separately and the county assessor shall not take the assessed value into account in determining when the total sum of the assessed value of the taxable property in the redevelopment project becomes equal to the total sum of the assessed value of the taxable property as shown on the assessment roll last equalized prior to October 17, 1989, as adjusted pursuant to this subdivision.
(g)  With respect to an area added to a redevelopment project by the Cities of Santa Cruz or Watsonville pursuant to Sections 33458.5 and 33477, the terms “assessment roll” and “last equalized assessment roll” as used in Section 33670 shall mean and refer to the assessment roll as reduced in accordance with the provisions of subdivision (b) of Section 170 of the Revenue and Taxation Code.

SEC. 6.

 Section 33670.9 is added to the Health and Safety Code, to read:

33670.9.
 With respect to the adoption of the redevelopment plan for an area of the City of Oakland known as West Oakland, including the neighborhoods in the general vicinity of Cypress Street and not previously designated as a redevelopment area, all of which is a disaster area, proclaimed by the Governor, based upon the earthquake of October 17, 1989, and its aftershocks, the provisions of Chapter 4 (commencing with Section 33300) and Chapter 6 (commencing with Section 33600) shall be modified as follows:
(a)  For the purposes of Sections 33328, 33670, and 33675, and for the purposes of the allocation of taxes pursuant to Section 33670 and the provisions of any such disaster area redevelopment plan, “assessment roll ... last equalized” and “base-year assessment roll” means the assessment roll as reduced in accordance with the provisions of subdivision (b) of Section 170 of the Revenue and Taxation Code.
(b)  The disaster area redevelopment plan may be approved and adopted pursuant to the Community Redevelopment Financial Assistance and Disaster Project Law (Part 1.5 (commencing with Section 34000)), and shall be exempted from all the procedural and other requirements for which exemptions are allowed by Section 34013, and from all other procedural requirements which are directly related to those exemptions and which could interfere with the speedy adoption of the disaster area redevelopment plan.
(c)  In adopting a disaster area redevelopment plan pursuant to this section, the City of Oakland shall be exempt from the provisions of Sections 33328, 33353 to 33353.6, inclusive, and subdivisions (e) to (k), inclusive, of Section 33352. These sections are deemed to impose procedural requirements which are directly related to the exemptions set out in Section 34013 within the meaning of subdivision (b) of this section, but they are not intended to be an exhaustive list of all of the directly related requirements.
(d)  Notwithstanding any other exemption granted by this section, the City of Oakland shall, prior to the adoption of a redevelopment plan, conduct at least two public meetings on the proposed plan for West Oakland residents and property owners. The City of Oakland shall also cause to be organized a citizens’ advisory committee comprised of residents and property owners of the project area which shall advise the agency on development strategy and plans and other matters which affect the residents of the project area. The citizens’ advisory committee shall remain in existence at least three years.
(e)  The adoption of a redevelopment plan pursuant to this section is limited to a plan which does not involve a change of an applicable zoning ordinance or the granting of a variance therefrom.

SEC. 7.

 The adoption of a redevelopment plan for the area known as West Oakland pursuant to this act shall not preclude any of the transportation alternatives presently under study by the Department of Transportation for a permanent replacement of the Interstate 880 Cypress viaduct.

SEC. 8.

 Notwithstanding Section 33676 of the Health and Safety Code, an affected school and community college district, in the area known as West Oakland, or in the City of Watsonville, shall be allocated, in addition to the portion of taxes allocated to the affected taxing agency pursuant to subdivision (a) of Section 33670 of the Health and Safety Code, all or any portion of the tax revenues allocated to the agency pursuant to subdivision (b) of Section 33670 of the Health and Safety Code attributable to one or both of the following:
(a)  Increases in the rate of tax imposed for the benefit of the taxing agency which levy occurs after the tax year in which the ordinance adopting the redevelopment plan becomes effective.
(b)  Increases in the assessed value of the taxable property in the redevelopment project area, as the assessed value is established by the assessment roll last equalized prior to the effective date of the ordinance adopting the redevelopment plan pursuant to subdivision (a) of Section 33670 of the Health and Safety Code, which are, or otherwise would be, calculated annually pursuant to subdivision (f) of Section 110.1 of the Revenue and Taxation Code.

SEC. 9.

 The provisions of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) shall not be applicable to the redevelopment plans for disaster-related projects adopted, amended, or merged by the Cities of Santa Cruz or Watsonville pursuant to the provisions of Sections 33459 and 33477 of the Health and Safety Code and the redevelopment plan adopted by the City of Oakland pursuant to Section 33670.9 of the Health and Safety Code.

SEC. 10.

 Notwithstanding Section 21090 of the Public Resources Code and Section 15180 of the State CEQA Guidelines (Chapter 3 (commencing with Section 15000) of Title 14 of the California Code of Regulations), each project that implements the redevelopment plans adopted, amended, or merged pursuant to Sections 33459 and 33477 of the Health and Safety Code, or adopted pursuant to Section 33670.9 of the Health and Safety Code, shall be subject to the provisions of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

SEC. 11.

 Sections 1 to 4, inclusive, and 6 to 9, inclusive, of this act shall remain in effect only until June 30, 1992, and as of that date are repealed, unless a later enacted chapter, which is chaptered before June 30, 1992, deletes or extends that date.

SEC. 12.

 Sections 1 to 10, inclusive, of this act, applicable only to the Cities of Santa Cruz, Watsonville, and Oakland are necessary to provide immediate assistance to the disaster area damaged by the October 17, 1989, earthquake. The problems created by that disaster are such that a general law cannot be made applicable.

SEC. 13.

 No reimbursement shall be made from the State Mandates Claims Fund pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other provisions of law. Notwithstanding Section 17580 of the Government Code, unless otherwise specified in this act, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.

SEC. 14.

 This act shall become operative on July 1, 1990.

SEC. 15.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
Portions of the Cities of Santa Cruz and Watsonville damaged by the October 17, 1989, earthquake lie within previously adopted redevelopment project areas. As a result of the damage to real property within each of these project areas, the assessed value of real property within each project area has been reassessed to a lower value. Consequently, no tax increment revenues will be payable to the Redevelopment Agency to make payments on existing indebtedness, or to assist with the public costs of rebuilding the project areas after the earthquake. In order to avoid defaults on existing indebtedness and to permit the Redevelopment Agency to assist with the public cost of rebuilding, it is necessary to reduce the base year assessed value for each redevelopment project. The City of Oakland needs to be exempted from statutory requirements which could interfere with the vitally necessary adoption of its disaster area redevelopment plan at the earliest possible time.
Therefore, this act must take effect immediately.