BILL NUMBER: AB 2805 CHAPTERED 09/30/04 CHAPTER 954 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2004 APPROVED BY GOVERNOR SEPTEMBER 29, 2004 PASSED THE ASSEMBLY AUGUST 25, 2004 PASSED THE SENATE AUGUST 24, 2004 AMENDED IN SENATE AUGUST 19, 2004 AMENDED IN SENATE AUGUST 17, 2004 AMENDED IN SENATE JUNE 22, 2004 AMENDED IN SENATE JUNE 7, 2004 AMENDED IN ASSEMBLY MAY 4, 2004 AMENDED IN ASSEMBLY APRIL 13, 2004 AMENDED IN ASSEMBLY APRIL 1, 2004 INTRODUCED BY Assembly Member Ridley-Thomas FEBRUARY 20, 2004 An act relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST AB 2805, Ridley-Thomas. Redevelopment plans. The existing Community Redevelopment Law imposes specified time limitations on redevelopment plans, including time limits on the effectiveness of the plans and time limits on the commencement of eminent domain proceedings to acquire property within the project area. The law also imposes limits on the number of dollars of taxes that may be divided and allocated to the redevelopment agency pursuant to the plans and limits the amount of the bond indebtedness that can be outstanding at one time without an amendment to the plans. The law prescribes procedures for the amendment of redevelopment plans. This bill would authorize the City Council of the City of Los Angeles, by December 31, 2009, to adopt one ordinance to amend the redevelopment plan for the Hoover Redevelopment Project, as to both the original project area and the expanded project area to, among other things, extend or increase any or all of the above-described time and dollar limits, notwithstanding provisions of the law relating to the amendment of redevelopment plans. The bill would require the city council to submit the proposed ordinance to the California Infrastructure and Economic Development Bank for review and approval, as specified. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature hereby finds and declares all of the following: (1) A number of historic, educational, and cultural resources of regional and statewide significance are located within the Hoover Redevelopment Project of the City of Los Angeles, including the 160-acre Exposition Park. (2) This park is home to state and county museums, including the Natural History Museum of Los Angeles County, the California African American Museum, and the California Science Center, the Exposition Park Rose Garden, the Exposition Park Intergenerational Community Center, the Science Center School/Center for Science Learning, the Sports Arena, and the Los Angeles Memorial Coliseum. The University of Southern California and the Shrine Auditorium are also located within the boundaries of the project area. A significant portion of the expanded project area of the Hoover Redevelopment Project is owned by the state and produces no property tax revenue for any taxing entity. This measure will provide a unique opportunity for revitalization and investment in the area without adverse fiscal impact to the state. (3) The City Council of the City of Los Angeles has determined that the preservation and feasible reuse of the historic Los Angeles Memorial Coliseum and adjacent Exposition Park facilities and the connection of this area to Los Angeles' Greater Downtown along the Figueroa Arts, Sports and Entertainment Corridor are essential toward the elimination of blight and the improvement of the economic health of the neighborhoods which surround and are located within the Hoover Redevelopment Project. (4) In 1966, 1971, 1983, and 1989, the City Council of the City of Los Angeles determined that the Hoover Project Redevelopment Area was a blighted area based upon substantial evidence and documentation. In November 2000, pursuant to Section 33490 of the Health and Safety Code, significant remaining blight was again documented in the Hoover Redevelopment Project Area's Implementation Plan. (5) The Legislature intends to permit the financing of this preservation and reuse to feasibly occur by providing necessary public financing, by creating the means to attract and induce the necessary private investment of capital, and to provide for the protection and enhancement of the Los Angeles Memorial Coliseum and related facilities, utilizing tax-increment revenues. (b) The City Council of the City of Los Angeles may, by the adoption of one ordinance adopted not later than December 31, 2009, amend the redevelopment plan for the Hoover Redevelopment Project with respect to both the original project area and the expanded project area, to do any or all of the following: (1) Extend the time limit on the effectiveness of the redevelopment plan specified in subdivision (a) of Section 33333.6 of the Health and Safety Code by not more than 12 years. (2) Notwithstanding paragraph (3) of subdivision (a) and paragraph (2) of subdivision (g) of Section 33333.4 of the Health and Safety Code, extend the time limits for commencement of eminent domain proceedings to acquire property within the project area by not more than 12 years. (3) Increase the limit on the number of dollars of taxes that may be divided and allocated to the agency pursuant to the plan, including any amendments to the plan. (4) Increase the limit on the amount of the bonded indebtedness that can be outstanding at one time without an amendment of the plan pursuant to Section 33334.1 of the Health and Safety Code. (5) Rename the project area to reflect the most identifiable assets within the boundaries of the project area, namely Exposition Park and University Park, and make other amendments to the text of the redevelopment plan that are consistent with addressing the unique circumstances and needs described in subdivision (a) and that are appropriate to assure the availability of housing for all economic segments of the community, consistent with the requirements of the California Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). (c) In adopting the ordinance pursuant to this section, neither the City Council of the City of Los Angeles nor the Community Redevelopment Agency of the City of Los Angeles is required to comply with Section 33354.6 or Article 12 (commencing with Section 33450) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code or any other provision of the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code) relating to the amendment of redevelopment plans, including, but not limited to, the requirement to make payments to taxing entities required by paragraph (2) of subdivision (b) of Section 33607.7 of the Health and Safety Code, except for the following requirements: (1) Payments required by paragraph (1) of subdivision (b) of Section 33607.7 of the Health and Safety Code. (2) The notice provisions required for amendments to redevelopment plans contained in Section 33452 of the Health and Safety Code. (3) The requirements of subdivisions (f), (g), and (i) of Section 33333.10 of the Health and Safety Code. For the purposes of compliance with subdivisions (f) and (g) of that section, the following applies: (A) The references in subdivision (f) of Section 33333.10 of the Health and Safety Code, to "the amendment pursuant to this section" or "pursuant to subdivision (a)" include the ordinance adopted pursuant to this section. (B) The references in subdivision (g) of Section 33333.10 of the Health and Safety Code to "bonds" means bonds or other indebtedness of the agency. (C) Except as otherwise expressly provided in this section, all expenditures from the Low and Moderate Income Housing Fund from the project shall comply with the requirements of Sections 33334.2 and 33334.3 of the Health and Safety Code. (D) Nothing in this section shall alter or modify the applicability of Section 33333.8 of the Health and Safety Code to the amendment authorized to be adopted by ordinance pursuant to this section. (4) The ordinance authorized by this act shall be subject to referendum pursuant to Section 33378 of the Health and Safety Code, and as prescribed by law for the ordinances of the City Council of the City of Los Angeles. (5) A preliminary report shall be sent to each affected taxing agency, the Department of Finance, and the Department of Housing and Community Development no later than 30 days prior to holding a public hearing on the proposed amendment. This preliminary report shall contain the information described in paragraphs (1) to (6), inclusive, of subdivision (e) of Section 33333.11 of the Health and Safety Code. (d) After the limit on the payment of indebtedness and receipt of property taxes that would have taken effect but for the ordinance adopted pursuant to this section, except for funds deposited in the Low and Moderate Income Housing Fund pursuant to Section 33334.2 or 33334.6 of the Health and Safety Code, the agency shall spend tax-increment funds generated by the Memorial Coliseum and Exposition Park portion of the project area only for public infrastructure expenditures, after first complying with the requirements of Section 33445 of the Health and Safety Code, including, without limitation, the requirement that the City Council of the City of Los Angeles shall determine, pursuant to paragraph (3) of subdivision (a) of Section 33445 of the Health and Safety Code, that the payment of funds will assist in the elimination of one or more blighting conditions inside the project area. Except as otherwise limited by paragraph (3) of subdivision (c), the agency may continue to spend funds deposited in the Low and Moderate Income Housing Fund in accordance with the Community Redevelopment Law, Division 24 (commencing with Section 33000) of Part 1 of the Health and Safety Code. (e) Because of the state's fiscal interest in this project, prior to adopting the ordinance authorized by this act, the City Council of the City of Los Angeles shall submit the proposed ordinance to the California Infrastructure and Economic Development Bank for review and approval. The bank may circulate the proposed ordinance to other state agencies, including, but not limited to, the Department of Finance, the Department of Housing and Community Development, and the Office of Planning and Research, and solicit their comments and recommendations. After considering the comments and recommendations of other state agencies, the bank shall take one of the following actions: (1) Approve the proposed ordinance if the bank makes the finding required pursuant to subdivision (g). (2) Return the proposed ordinance to the city council with specific recommendations for changes that would allow the bank to approve the ordinance. (f) The bank shall have 30 days from the receipt of the proposed ordinance to act pursuant to subdivision (e). If the bank does not act within 30 days, the proposed ordinance shall be deemed approved. (g) For bank approval, the proposed ordinance shall demonstrate a reasonable probability that the economic activity proposed to occur within the Hoover Redevelopment Project Area as a result of the proposed ordinance would result in an amount of revenue to the General Fund that is greater than the amount of property tax increment revenues that would be diverted from school entities, taking into consideration all pertinent data, and excluding the portion related to the Educational Revenue Augmentation Fund (ERAF), over the term of the Hoover Redevelopment Project Area. In making this demonstration, the bank shall consider only those General Fund revenues that would occur because of economic activity proposed to occur within the Hoover Redevelopment Project Area as result of the proposed ordinance. The bank shall not consider those General Fund revenues that would have occurred if the proposed ordinance had not been enacted. If an ordinance is not adopted consistent with this section by December 31, 2009, this section shall be repealed on January 1, 2010. (h) The bank shall not approve the proposed ordinance if it determines that the ordinance would directly or indirectly result in a relocation of a professional sports team from another location in the state to a location within the Hoover Redevelopment Project Area. SEC. 2. Due to the unique circumstances facing the Hoover Redevelopment Project of the City of Los Angeles, as described in Section 1 of this act, the Legislature hereby finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution.