Successor Agency
PROGRAM DESCRIPTION The Danville Community Development (Redevelopment) Agency was established in 1986 in accordance with state-enacted Community Redevelopment Law, and was responsible for carrying out the goals of the 1986 Redevelopment Plan. Implementation of those goals assisted private property owners and businesses, spurred private re-investment in the project area and reduced or eliminated blighted conditions that existed when the Agency was established. In 2011, the State enacted ABx1 26, which eliminated all redevelopment agencies throughout the state. Effective February 1, 2012, the Community Development Agency (CDA) was dissolved and all assets were transferred to the Town, acting as the Successor Agency for the former CDA. The role of the Successor Agency is to wind down the affairs of the former CDA. The Successor Agency is responsible for biannually developing a Recognized Obligation Payment Schedule (ROPS), which lists all ongoing obligations of the former CDA, and allows the Successor Agency to receive Redevelopment Property Tax Trust Fund revenues to meet those obligations. The ROPS must be approved by the Successor Agency’s Oversight Board, the State Department of Finance and the County Auditor-Controller. The Successor Agency will also be required to liquidate assets, including real property assets, held by the former CDA. This process also requires approval of the Successor Agency’s Oversight Board and in some cases, all taxing entities within the Town. On June 27, 2012, the State passed AB 1484, adding significant new and modified actions and deadlines associated with the ongoing dissolution process.
HIGHLIGHTS The Town has elected to serve as the Successor Agency to the former CDA for the purpose of winding down the CDA and continuing to make payments on enforceable obligations, as defined under ABx1 26 and AB 1484. Successor Agency costs for 2014/15 include Enforceable Obligations as shown on the two ROPS that either have been or will be filed with the State. Total available Redevelopment Property Tax Trust Fund (RPTTF) revenues are projected to be sufficient to fully fund all recognized obligations, including 2014/15 debt service payments associated with the outstanding 2001 and 2005 Certificates of Participation and Taxable Revenue Bonds, and administrative costs allowed by statute. Danville’s ability to recoup $8.7 million in outstanding principal and interest loaned by the Town to the CDA remains very much in question pursuant to both ABx1 26 and AB 1484. In January 2014, Danville became one of over 80 municipalities statewide that have filed suit against the State of California, challenging both the validity and methodology related to AB 1484, and seeking to recover the re-payment of the $8.7 million owed to the Town by the former CDA. 132
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