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19. Cupertino Square eminent domain L Oty of Cupertino 10300 Torre Avenue Cupertino, CA 95014 (408) 777-3308 Fax: (408) 777-3333 CUPEJUINO Community Development Department Summary Agenda Item No. fl. Agenda Pate: September 18, 2007 RECOMMENDATION Pursuant to SB 53 requirements, approve an ordinance containing a description of the Cupertino Redevelopment Agency's program concerning the use of eminent domain in the acquisition of property in the Cupertino Square Project Area. BACKGROUND "- Under a new section of California Redevelopment Law, (section 33433 of the Health and Safety Code) legislative bodies are required to adopt an ordinance that describes their . Redevelopment Agency's program concerning the use of eminent domain in the . acquisition of property. Known as the SB 53 ordinance, this statutory requirement applies to ~ existing redevelopment plans adopted prior to January 1,2007, mcluding those that have no or limited use of eminent domain. . SB 53 also triggers a time limitation for the use of eminent domain - 12 years from the date of adoption of the redevelopment plan. Once the agency adopts the ordinance; it can only amend its program for acquisition of real property by use of eminent domain by amending its redevelopment.plan. ANALYSIS The Redevelopment Plan for the Cupertino Square Project, adopted on 8/21/00, states . that the Agency may acquire, but is not required to acquire any real property located in the Project Area by any.means authorized by law. According to the plan, it is recognized that acquisition of real property could be necessary in order to achieve redevelopment goals, however, it is also recognized that eminent domain is a method of last resort when other methods fail (exchange, purchase, etc.) L The Agency is not allowed to acquire real property that contains existing buildings unless one of the f~llowing conditions applies: 19 -1 Cupertino Vallco Redevelopment Project Page2of2 · The building requires, structural alteration, improvement, moder.r\ization, or rehabilitation; · The site or lot requires. modification in siZe, shape, or use; or · The owner fails or refuses to execute a participation agreement in accordance with the plan prov~ions. . '---/' Finally, the Agency is not authorized to acquire real property owned by public bodies without their consent. Based on the date of plan adoption, eminent domain authority will expire in 2012 unless an extension is gr~ted based on blight findings. Enclosures: Ordinance Prepared by: Kelly Kline, Redevelopment/Economic Development M~nager Approved by: '\ ~ '--'" Steve Pia Director of Community Development David W. Knapp City Manager g:planning/redevelopment/ citycouncilstaffreport SB 53 --.-/ 19 -2. DRAFT ORDINANCE NO. 07-2012 "- AN ORDINANCE OF THE CITY OF CUPERTINO CONTAINING A DESCRIPTION OF THE CUPERTINO REDEVELOPMENT AGENCY'S PROGRAM TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN IN THE CUPERTINO V ALLCO REDEVELOPMENT PROJECT . WHEREAS, the City Council of the City of Cupertino, Calif~a ("City Council") adopted Ordinance No. 1850 on August 21,2000, approving and adopting the Redevelopment Plan for the. Cupertino. Vallco Redevelopment Project (the "Redevelopment Plan"); and WHEREAS, the Redevelopment Agency of the City of Cupertino ("Agency") has been designated as the official redevelopment agency in the City of Cupertino to carry out the. functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to . implement the . Redevelopment Plan; and . WHEREAS, Section m. B. 1. of the Redevelopment Plan contains Agency authority to acquire property by eminent domain; and "- WHEREAS, Section 33342.7 of the Health and Safety Code, which was adde4 by Senate Bill 53 ("SB 53"), which took effect on January 1, 2007, requires a legislative body that adopted a redevelopment plan containing eminent domain authority before January 1,2007, to adopt an ordinance on or before July 1, 2007, containing a description of the agency's program to acquire real property by eminent domain. .. NOW, THEREFORE, THE CITY COUNCIL OF TIlE CITY OF CUPERTINO, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Pursuant to Section 33342.7 of the Health and Safety Code, a description of the Agency's program to acquire real property by eminent domain is set forth in Exhibit. A, attached hereto and incorporated herein l>y this reference. The Agency's program to acquire real property by eminent domain may be amended only by amending the Redevelopment Plan pursuant to Article 12 of the Community Redevelopment Law (commencing with Health and Safety Code Section 33450). Section 2. The City Clerk IS hereby directed to send a certified copy of this Ordinance to the Agency. L 19 -3 Ordinance No. 07-2012 2 Section 3. If any part of this Ordinance is held.to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and this City Council hereby declares that it would nave passed the remainder of this Ordinance if such invalid portion thereofhad been deleted. ~ Section 4. The City Clerk shall cause this ordinance to be published at least once in a newspaper of general circulation, published and circulated in the City within 15 days after its adoption, in accordance with Government Code Section 36933, and shall certify to the' adoption of this ordinance and shall cause this ordinance and her certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City. INTRODUCED at a regular meeting of the City Council of the City of Cupertino the 18th of September, 2007 and ENACTED at a regular meeting of the City Council of the City of Cupertino th~ _day of . 2007, by the following vote: Vote Members of the City Council AYES: NOES: ABSENT: ABSTAIN: ~'. A TIEST: APPROVED: Mayor, City of Cupertino City Clerk --/ 19 -4. Ordinance No. 07-2012 3 Exhibit A \.- Redevelopment Plan For The Cupertino Vallco Redevelopment Project Area III. Proposed Redevelopment Actions D. Property Acquisition 1. Real Property Except as specifically exempted herein, the Agency may aCquire, but is not required to acquire, any real property located in the Project Area by any means authorized by law. It is in the public interest and is necessary in order to eliminate the conditions requiring redevelopment and in order to execute this Plan forthe power of eminent domain to be employed by the Agency to acquire real property in the Project Area which cannot be acquired by gift, devise, exchange, purchase, or any other lawful method. Eminent domain proceedings, if used, must be. commenced within twelve (12) years from the date of adoption of this Plan. . \.- The Agency shall not acquire real property to be retained by an owner pursuant to a participation agreement if the owner fully performs under the agreemerit. The Agency is authorized to acquire,structures without acquiring the land upon which those structures are located. The Agency is.authorized tc:> acquire either . the entire fee or any other interest in real property less than a fee. . The Agency'shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the . consent of the owner unless: . (a) such building requires structural alteration, improvement, modernization, or rehabilitation; (b) the site, or lot on which the building is situated requires modification in size, shape, or use; or ( c) it is necessary to impose upon such property any of the controls, limitations, restrictions, and requirements of the Plan and the owner fails or refuses to execute a participation agreement in accordance with the provisions of this Plan. The Agency is not authorized to acquire real property owned by publk bodies which do not consent to such acquisition. 'The Agency is authorized, however, to acquire public property transferred to private ownership before redevelopment of the Project Area is completed, unless the Agency and the private owner enter into a participation agreement and the owner completes his responsibilities under the participation agreement. . ~ 19 -5