The meeting will begin at 5 p.m. in the council chambers at Lakeport City Hall, 225 Park St.
Lakeport Community Development and Redevelopment Director Richard Knoll will take to the council a discussion on redevelopment and a proposed resolution for the council to become the Lakeport Redevelopment Agency’s successor agency.
Action has to be taken in the wake of last month’s decision by the California Supreme Court upholding legislation abolishing redevelopment.
At the same time, the court struck down companion legislation that would have allowed agencies to continue operating if they made annual payments to the state, as Lake County News has reported.
AB1X 26, which abolished redevelopment, provides that the city will be the “successor agency” to the agency and responsible for the wind down of the agency’s affairs, according to Knoll’s report to the council.
His report explains that the activities of the city, as successor agency, will be managed by an oversight board, comprised primarily of representatives of other affected taxing agencies, until such time as the debts of the agency are paid off, all agency assets liquidated and all property taxes are redirected to local taxing agencies.
If the city chooses not to serve as the successor agency, it would need to file a resolution with the Lake County Auditor-Controller’s Office by Jan. 13, according to Knoll. The city automatically becomes the successor agency unless it elects not to by resolution.
He said if the city doesn’t act as successor agency, another local agency – such as the county or a school district – would oversee the agency’s wind down process, which he said “likely to be time consuming and complex.”
“There is risk that there will be disputes over the proper implementation of the wind down process,” he noted in his memo. “However, if the City chooses not to serve as the successor agency, it will have little or no control over the manner in which the existing obligations and agreements of the Agency are handled during the wind-down process.”
Knoll also warns of risks in becoming the successor agency.
Those include not receiving reimbursement for administrative costs that exceed the city’s budget, not receiving reimbursement if there are insufficient tax increment funds to cover higher priority costs and defending lawsuits brought against the city, acting as successor agency, at its own cost.
Those risks, he added, are subject to a statutory limitation on successor agency liability set forth in AB1X 26.
Following the redevelopment discussion, staff will hold a training with the council on using new iPads for the paperless agenda process.
E-mail Elizabeth Larson at
011012 Lakeport City Council - Resolution for Successor Agency Report
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