City of Culver City, California
City Council Agenda Item Report
8-A
RECOMMENDATION:
That City Council adopt a resolution electing to receive the City’s statutory share of
tax increment from the entire Culver City Redevelopment Project commencing with
FY 2005-06 and continuing each year thereafter, subject to future City Council
election.
DISCUSSION:
On July 26, 1971, the Agency adopted the 306-acre Slauson-Sepulveda
Redevelopment Project No. 1 (Component Area No. 1) and on December 28, 1971,
the Agency adopted the 184-acre Overland-Jefferson Redevelopment Project No. 2
(Component Area No. 2). The 526-acre Washington-Culver Redevelopment Project
No. 3 (Component Area No. 3) was adopted on November 24, 1975. On November
23, 1998, the Agency adopted the 270-acre Component Area No. 4 and concurrently
merged the four component areas.
Component Area No. 4 is subject to statutory pass through requirements of the
California Community Redevelopment Law (Health and Safety Code Section 33000
et seq.) (“CRL”) which provides for specific formulas for payments (so-called
“statutory pass-through payments”) to be made by the Agency to affected taxing
entities.
On November 23, 1998, the Agency approved amendments to the Redevelopment
Plan with regard to Component Areas No. 1, No. 2 and No. 3 that extended the time
limits for establishing debt. As a result of these time limit extensions, the Agency
Meeting Date: 06/12/06 Item Number: C-6
AGENDA ITEM: Adopt a Resolution Electing to Receive the City’s Statutory
Share of Tax Increment from the Entire Culver City Redevelopment Project
Contact Person/Dept.:
Karen Maggio/City Treasurer’s Office
Phone Number: (310) 253-5844
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: Master Notification List on 06/07/06
Department Approval:
Crystal C. Alexander 5/31/06
CAO Approval: Jerry B. Fulwood
(06/07/06)
City Controller Approval: Marlee Chang
(06/07/06)City of Culver City, California
City Council Agenda Item Report
8-B
was required to allocate statutory pass-through payments commencing in FY 2004-
05 for Component Areas No. 1, No. 2 and No. 3 in accordance with all applicable
provisions of the CRL.
As an affected taxing agency, Section 33607.5 of the CRL provides that the City
may elect to receive the City’s share of statutory pass-through payments for the
entire Culver City Redevelopment Project. Agency staff is recommending that the
City Council make such an election commencing with FY 2005-06 and continuing
each year thereafter, subject to future City Council election.
Pursuant to a letter received by the Agency Treasurer from the County of Los
Angeles Department of Auditor-Controller, the County Auditor-Controller may be of
the opinion that the City may only make such an election at the time a new
redevelopment project area is adopted or at the time a redevelopment project area is
amended to extend or increase certain redevelopment plan limitations (such as the
extension of the time limits to establish debt for Component Areas No. 1, No. 2 and
No. 3). However, Agency legal counsel is of the opinion that the election is available
in any fiscal year in which the Agency receives tax increment for the Culver City
Redevelopment Project as provided in Section 33607.5 of the CRL. Agency staff will
contact appropriate Departments of the County of Los Angeles to follow up on this
matter and will report back to the City Council with updated information.
FISCAL ANALYSIS:
If the City makes the election, based on estimates prepared by Greg Soo-Hoo of
Keyser Marston Associates, Inc., the City would receive approximately $94,000 in
fiscal year 2006/2007. This annual amount will increase incrementally to a
maximum amount of $53,000 in fiscal year 2023/2024. It will then decrease
incrementally as component areas of the Redevelopment Project expire. This will
result in approximately $10 million of pass-through revenues over 39 years ($4.1
million net present value).
ATTACHMENTS:
1. City Council Resolution
MOTION:
That the City Council:City of Culver City, California
City Council Agenda Item Report
8-C
Adopt Resolution No. 2006-R____ electing to receive the City’s statutory share of
tax increment from the entire Culver City Redevelopment project.
MEETING DATE 6/12/06
AGENDA ITEM Adopt a Resolution Electing to Receive the City's Statutory Share
of Tax Increment from the Entire Culver City Redevelopment
Project
ATTACHMENTS
Pages|109| Resolution Electing to Receive the City's Statutory Share of Tax
Increment from the Entire Culver City Redevelopment Project
1 - 3RESOLUTION NO 2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY CALIFORNIA ELECTING TO RECEIVE THE
CITY S STATUTORY SHARE OF TAX INCREMENT FROM
THE ENTIRE CULVER CITY REDEVELOPMENT PROJECT
WHEREAS, the Slauson-Sepulveda Redevelopment Plan for Project Area No 1
was adopted and amended by ordinances of the Culver City Council ("City Council") on July
26 1971 (Ord No CS-712) June 6, 1977 (Ord No CS-892) and December 11, 1989 (Ord
No 89-034) respectively (the Amended Project Area No 1 Redevelopment Plan"),
WHEREAS the Overland-Jefferson Redevelopment Plan for Project Area No
2 was adopted and amended by ordinances of the City Council on December 28 1971
(Ord No CS-729) and December 27 1994 (Ord No 94-035) (the 'Amended Project Area
No 2 Redevelopment Plan")
WHEREAS, the Washington-Culver Redevelopment Plan for Project Area No
3 was adopted and amended by ordinances of the City Council on November 24, 1975
(Ord No CS-862), and December 27, 1994 (Ord No 94-036) (the "Amended Project Area
No 3 Redevelopment Plan ),
WHEREAS, the Amended Project Area No 1 Redevelopment Plan the
Amended Project Area No 2 Redevelopment Plan and Amended Project Area No 3
Redevelopment Plan (collectively the "Redevelopment Plans ) were merged into the
Redevelopment Plan for the renamed Culver City Redevelopment Project by ordinance of
the City Council on November 23, 1998 (Ord No 98-014)(the Redevelopment Plan')
WHEREAS as part of that merger, former Project Area No 1 was designated
as Component Area No 1, former Project Area No 2 was designated as Component Area
No 2 and former Project Area No 3 was designated as Component Area No 3 in the
Redevelopment Plan,|101010101010101010 10
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WHEREAS, a new Component Area No 4 was created and added to the
Culver City Redevelopment Project by ordinance of the City Council on November 23 1998
(Ord No 98-015)
WHEREAS, Component Area No 4 is subject to subdivisions (b) (c), (d) and
(e) of Section 33607 5 of the California Community Redevelopment Law (Health and Safety
Code 33000 et seq ) (` CRL ) which provides for specific formulas for tax increment
payments to be made by the Agency to affected taxing entities ("statutory pass-through
payments ),
WHEREAS, in addition to the merger and addition of Component Area No 4
to the Culver City Redevelopment Project, the Agency further amended the Redevelopment
Plan on November 23, 1998 to extend the time limits for establishing debt for Component
Areas No 1, No 2 and No 3 As a result of these time limit extensions, Section 33607 7 of
the CRL applies which states that if no tax increment pass through agreement exists
statutory pass-through payments must be paid to each affected taxing agency The Agency
was required to allocate statutory pass-through payments to affected taxing entities
commencing in FY 2004-05 for Component Areas No 1, No 2 and No 3 in accordance
with applicable provisions of the CRL,
WHEREAS Section 33607 5 of the CRL provides that in any fiscal year in
which the Agency receives tax increment the City may elect to receive the City s share of
statutory pass-through payments for the Culver City Redevelopment Project,
WHEREAS the City Council of the City of Culver City now desires to make
such an election for the entire Culver City Redevelopment Project commencing with FY
2005-06 and continuing each year thereafter, subject to future City Council election
NOW THEREFORE the City Council of the City of Culver City, California
DOES HEREBY RESOLVE, as follows|109| The City Council hereby elects to receive the City's share of statutory
tax increment payments for the entire Culver City Redevelopment Project provided for under
-2-Section 33607 5 of the CRL commencing with FY 2005-06 and continuing each year
thereafter subject to future City Council election|109| Agency staff is hereby directed and authorized to transmit a copy of this
Resolution to the appropriate Department(s) of the County of Los Angeles|109| The City Clerk shall certify to the passage and adoption of this
Resolution
APPROVED and ADOPTED this day of , 2006
GARY SILBIGER, MAYOR
City of Culver City, California
ATTEST APPROVED AS TO FORM
CHRISTOPHER ARMENTA
City Clerk City Attorney
Ae4, 1 AtOtdr-
CAROL A SCHWAB
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