BOARD OF Hilda L. Solis Holly J. Mitchell Lindsey P. Horvath SUPERVISORS Fourth District cathryn Barge
First District Second District Third District ifth Distric Chief
Office. Chia A Dave ricer
"To Enrich Lives Through Effective and Caring Service"
ADOPTED
BOARD OF SUPERVISORS
April 15, 2025 COUNTY OF LOS ANGELES
The Honorable Board of Supervisors 18 April 15, 2025
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012 Edward you
EDWARD YEN
Dear Supervisors: EXECUTIVE OFFICER
ADOPT A RESOLUTION OF THE BOARD OF SUPERVISORS EXPRESSING THE INTENT OF
THE COUNTY OF LOS ANGELES TO PARTICIPATE IN THE CITY OF NORWALK ENHANCED
INFRASTRUCTURE FINANCING DISTRICT
(ALL DISTRICTS) (3-VOTES)
SUBJECT
Recommendation to adopt a Resolution of Intent (Resolution) to express the intent of the County of Los Angeles (County) to potentially participate in the City of Norwalk (Norwalk) Enhanced Infrastructure Financing District (EIFD).
IT IS RECOMMENDED THAT THE BOARD:
1. Find that the proposed Resolution is not subject to the provisions of the California Environmental Quality Act (CEQA) because the action does not meet the definition of a project for reasons stated herein and the reasons reflected in the record;
2. Approve the Resolution to express the County's intent to participate in the Norwalk EIFD if the Board of Supervisors (Board) approves the Infrastructure Financing Plan (IFP) at a later date; and
3. Affirm that as a potential participating taxing entity the County will have membership in the newly formed Public Financing Authority (PFA).
PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION
The purpose of the Resolution is to indicate the County's intent to participate in the proposed Norwalk EIFD. A future Resolution of the Board approving the IFP will be required for the County to The Honorable Board of Supervisors
4/15/2025
formally participate in the EIFD.
On September 29, 2014, the Governor approved Senate Bill 628, which authorized the formation of EIFDs. An EIFD is a limited tax increment financing district created after the dissolution of redevelopment agencies in 2012. An EIFD allows governmental entities to agree to contribute a portion of their future property tax revenues from a defined district for the construction of certain infrastructure projects. Schools cannot participate in EIFDs, no new taxes are created, and participation in the EIFD is voluntary.
The purpose of the Norwalk EIFD is to assist in the financing of infrastructure projects that will encourage housing and commercial development in opportunity areas throughout Norwalk. The proposed area is a relatively focused area of 201-acres (less than three percent of the total Norwalk acreage). Approximately $70.0 million of infrastructure projects will be identified including: roadway and utility capacity enhancements, streetscape improvements, transit connectivity, and parks and open space projects. In addition, Norwalk is targeting 35 percent of housing units constructed will be affordable.
Implementation of Strategic Plan Goals
These actions support the County's Strategic Plan North Star 1- Make Investments that Transform Lives - by supporting efforts that prevent displacement, increase access to housing stability, develop more affordable housing, sustain home ownership opportunities, and enhance the effectiveness of the County's homeless rehousing system.
FISCAL IMPACT/FINANCING
Based on a preliminary fiscal analysis, it appears that the new development activity will generate greater future property taxes for the County net of its contribution to the EIFD, than if the County did not participate in the EIFD and the new development did not occur. Therefore, it is expected the EIFD will have a positive net impact on the County General Fund due to the increased assessed values in the district. If successful, the region will benefit from the EIFD due to the transit-oriented development including new residential and commercial development and job growth. Consistent with Board policy, a detailed fiscal analysis will be provided later in the process when the IFP is completed.
FACTS AND PROVISIONS/LEGAL REQUIREMENTS
The law authorizing creation of EIFDs, California Government Code Section 53398.50 et seq (EIFD law), took effect in 2015. The EIFD law was established to provide a tool to finance local infrastructure after the dissolution of redevelopment agencies. Norwalk has proposed to partner with the County on the EIFD to assist in financing infrastructure projects. Section 53398.63 of the EIFD Law requires the IFP to include: descriptions of the infrastructure improvements and development projects within the EIFD; a plan for financing the infrastructure projects; tax increment projections; limits on the time the EIFD will exist and the dollar amounts the EIFD will receive; and the anticipated incremental tax revenue contributions from Norwalk and the County to the EIFD.
The IFP, which will detail the County's anticipated contribution to the EIFD, will be presented to your Board for approval after it has been prepared by Norwalk and reviewed by Chief Executive Office staff consistent with Board Policy. The IFP must be approved by your Board by resolution before any incremental tax revenue from the County is contributed to the proposed EIFD. The IFP must also The Honorable Board of Supervisors
4/15/2025
be approved by the PFA, which is the governing body of the EIFD, at a public hearing to form the proposed Norwalk EFD. The Resolution of Intent includes the formation of the PFA, and appointments to the PFA governing body will then be made. These appointments include one member of the Board and one member of the public appointed by the Board. Norwalk will appoint three members to the PFA.
ENVIRONMENTAL DOCUMENTATION
The proposed Resolution is not a project pursuant to CEQA because it is an activity that is excluded from the definition of a project by Section 15378(b) of the State CEQA Guidelines. This proposed action is an administrative activity of the government, which will not result in direct, or indirect changes to the environment.
IMPACT ON CURRENT SERVICES (OR PROJECTS)
Because the development is within Norwalk, the direct impact on the County for services will be minimal. Benefits of the projects include construction and permanent jobs; new residential units, including low-and moderate-income units; and improved circulation and air quality.
CONCLUSION
At such time as your Board approves the attached Resolution, please return two signed copies to the Chief Executive Office, who will assist in distributing a copy to Norwalk.
Respectfully submitted,
FESIA A. DAVENPORT
Chief Executive Officer
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Enclosures
c: Executive Office, Board of Supervisors
County Counsel
Auditor-Controller
RESOLUTION OF INTENT OF THE
BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES
TO PARTICIPATE IN THE PROPOSED
CITY OF NORWALK ENHANCED INFRASTRUCTURE FINANCING DISTRICT AND
NEWLY FORMED PUBLIC FINANCING AUTHORITY
WHEREAS, on 4/15/25 the City Council of the City of Norwalk ("City Council") approved Resolution No. 79659 which is attached to this Resolution as Exhibit A ("Exhibit A"); and
WHEREAS, pursuant to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with Section 53398.50) (the "EIFD Law") Exhibit A authorized the initiation of a process to establish an Enhanced Infrastructure Financing District ("EIFD") whose proposed name is the "City of Norwalk Enhanced Infrastructure Financing District ("Norwalk EIFD": änd
WHEREAS, the proposed boundaries of the Norwalk EIFD are identified on a map entitled "Proposed Boundaries of the Norwalk EIFD" a copy of which is attached to this Resolution as Exhibit B; and
WHEREAS, the proposed Norwalk EIFD will be used to finance certain public facilities within the proposed boundaries of the Norwalk EIFD; and WHEREAS, Exhibit A also established a Public Financing Authority ("PFA") to serve as the governing body of the proposed EIFD and which will also be responsible for implementing the Infrastructure Financing Plan ("IFP") required under EIFD Law; and WHEREAS, the City Council has proposed, as stated in Exhibit A, that the County of Los Angeles participate with the City of Norwalk in the proposed Norwalk EIFD as a taxing entity; and WHEREAS, pursuant to Government Code section 53398.51.1 and as stated in Exhibit A, if the County of Los Angeles participates in the proposed Norwalk EIFD as a taxing entity, a member of your Board, and a member of the public appointed by your Board, shall be members of the PFA.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Los Angeles that:
1. 1. The Board intends that the County of Los Angeles ("County") will participate in the Norwalk EIFD as described in Exhibit A as a taxing entity if the Board of Supervisors approves the IFP at a later, hearing date;
2. Pursuant to Government Code section 53398.51.1 and Exhibit A, if the Board of Supervisors subsequently approve the IFP and the County's participation as a taxing entity in the proposed Norwalk EIFD, the County of Los Angeles will have membership in the newly formed PFA described in Exhibit A. The. PFA's membership will include the Los Angeles County Supervisor of the Supervisorial District in which the majority of the territory of the Norwalk EIFD is located, as well as the Mayor of the City of Norwalk, one member of the City Council appointed by the City Council, one member of the public appointed by the Norwalk City Council, and one member of the public appointed by the Board of Supervisors;
•
City of Norwalk staff will prepare the IFP in accordance with EIFD Law;
4. The IFP will be presented to the Board of Supervisors at a future regular meeting, for approval;
5. The IFP must be approved by the Board of Supervisors before the County may be considered a participating taxing entity in the Norwalk EIFD or any incremental tax revenue from the County may be used by the proposed Norwalk EIFD. The IFP must also be approved by the Board of Supervisors before a public hearing is held for formation of the proposed Norwalk EIFD and approval of the IFP by the PFA;
6. As stated in Exhibit A, City of Norwalk staff will be responsible for the distribution of the IFP, and any required California Environmental Quality Act reports, to the PFA, the City of Norwalk Planning Commission, land owners within the boundaries of the proposed Norwalk EIFD (as defined under EIFD Law), and each affected taxing entity (as defined under EIFD Law) as required under California Government Code Section 53398.64 for formation of the proposed Norwalk EIFD;
7. As stated in Exhibit A, the City of Norwalk City Clerk is responsible for the mailing and publication of notice, as required under EIFD Law (California Government Code Sections 53398.60, 53398.61, 53398.66), for formation of the proposed Norwalk EIFD. The County of Los Angeles, and its staff, will have no responsibilities for the required mailing and publication of notice;
8. The PFA will hold a public hearing for the establishment of the proposed Norwalk EIFD and approval of the IFP at the City of Norwalk Council Chambers. Under no condition, will the PFA hold the public hearing for the establishment of the proposed Norwalk EIFD and approval of the IFP until the Board of Supervisors has formally approved the IFP;
9. This resolution in no way obligates the County of Los Angeles to use incremental tax revenue to finance public facilities in the proposed Norwalk EIFD until the Board of Supervisors approves the IFP;
10. This Resolution in no way obligates the PFA to establish the proposed Norwalk EIFD. As stated in Exhibit A, the establishment of the proposed Norwalk EIFD and approval of the IFP is contingent upon the approval by the PFA by resolution and ordinance following a public hearing: and
11. This Resolution shall take effect immediately upon its approval by the Board of Supervisors of the County of Los Angeles.
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The foregoing resolution was on the 15th day of April 2025, adopted by the Board of Supervisors of the County of Los Angeles.
EDWARD YEN
Executive Officer
Board of Supervisors of
the County of Los Angeles
CALIFORNIA By
APPROVED AS TO FORM
DAWYN R. HARRISON
County Counsel
FOR
By -
Michael S. Buennagel
Senior Deputy County Counsel