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HomeMy WebLinkAbout06/07/2011 Committee Members: Staff: Rhonda Smiley, Harold Hanson, Chair Assistant to the City Manager Sue Benham Ken Weir AGENDA SUMMARY REPORT REGULAR MEETING OF THE PLANNING AND DEVELOPMENT COMMITTEE Tuesday, June 7, 2011 12:00 p.m. City Hall North – Conference Room A 1600 Truxtun Avenue Bakersfield, CA 93301 The meeting was called to order at 12:05 PM 1. ROLL CALL Committee members present: Councilmember Harold Hanson, Chair Councilmember Sue Benham Councilmember Ken Weir Staff present: Alan Tandy, City Manager Ginny Gennaro, City Attorney Rhonda Smiley, Asst. to the City Manager Justin Crumley, Associate Attorney Steve Teglia, Asst. to the City Manager Jim Eggert, Planning Director Chris Huot, Administrative Analyst Phil Burns, Building Director Nelson Smith, Finance Director Raul Rojas, Public Works Director Ken Trone, Park Construction & Facility Planner Marian Shaw, PW Civil Engineer Others present: Scott Thayer, Castle & Cooke Donna Carpenter, H.B.A. Gretchen Wenner, Bakersfield Californian AGENDA SUMMARY REPORT Planning and Development Committee Monday, June 7, 2011 Page 2 2. ADOPT MAY 6, 2011 AGENDA SUMMARY REPORT Adopted as submitted 3. PUBLIC STATEMENTS None 4. DEFERRED BUSINESS A. Discussion and Committee Recommendation Regarding Newly Constructed Home Purchase Credit – Tandy / Teglia Assistant to the City Manager Steven Teglia provided an overview of Committee member Ken Weir’s request of developing a pilot program designed to provide purchasers of newly constructed homes with a cash subsidy. Mr. Teglia also provided an overview of two separate reports, “The Local Impact of Home Building in a Typical Metro Area” produced by the National Association of Home Builders in June of 2009 and “Building California’s Future: An Economic and Fiscal Analysis of Housing Construction in the Golden State” produced by the California Department of Real Estate, the California Department of Housing and Community Development, and the California Housing Finance Agency in July of 2010, which attempted to quantify the economic benefit brought in by the construction of new homes. Potential issues include equity concerns and budget impacts. Committee member Weir referenced an article written by Timm Herdt, of the Ventura County Star dated May 31st 2011 titled “The State Economy - It’s The Housing Stupid” to question what the City is doing to help the local economy. Committee member Weir stated only 155 permits have been issued this year, or 44 percent of the average of the last two years, which will have an effect on our local economy. He stated that if we want to help the economy, something has to be done. He cited the following example: the City currently rebates a portion of our garbage fees to those in need; it exempts those in need from the utility surcharge; and established a reduced traffic impact fee for urban areas due to the City’s desire for infill. The City makes allowances to those in need and provides incentives for City desired activity. Local industry employs a large segment of our community and they are in need. Committee member Weir made a motion to make available a $2,500 credit for the purchasers of new homes. The credit would be due at the close of escrow on eligible new home purchases and permits issued for the construction of new homes after Council approval. The credit would be available for a maximum of 250 permits. He requested that if his proposal is not the majority report, he would like a minority report stating his position sent along to the full Council. AGENDA SUMMARY REPORT Planning and Development Committee Monday, June 7, 2011 Page 3 Committee Chair Harold Hanson stated there is nothing that can change the current economic situation. The difference between short sales and foreclosures compared to new home prices is too enormous to make this kind of pilot program work. Furthermore, the City would be vulnerable to criticism and potential litigation for subsidizing a certain market and not covering others. The motion failed 1-2, with Committee member Weir voting in favor of the motion and Committee members Hanson and Benham voting opposed to the motion. Committee member Weir asked that his motion be sent to the full Council for consideration. B. Discussion and Committee Recommendation Regarding the 2011 Committee Meeting Schedule – Smiley Adopted as submitted 5. COMMITTEE COMMENTS None 6. ADJOURNMENT The meeting adjourned at 12:25 PM cc: Honorable Mayor and City Council