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Home My WebLink About02/02/1998 BAKERSFIELD Randy Rowles, Chair Irma Carson Kevin McDermott Staff: Dolores Teubner AGENDA BUDGET AND FINANCE COMMITTEE Monday, February 2, 1998 12:15 p.m. City Manager's Conference Room Second Floor - City Hall, Suite 201 1501 Truxtun Avenue Bakersfield, CA 1. ROLL CALL 2. APPROVAL OF JANUARY 5, 1998 MINUTES 3. PRESENTATIONS 4. PUBLIC STATEMENTS 5. DEFERRED BUSINESS A. ESTABLISHMENT OF NEW REDEVELOPMENT AREAS - Wager B. COST RECOVERY SYSTEM -'Teubner 6. NEW BUSINESS A. DISCUSSION OF BID APPEAL PROCESS - Rojas 7. ADJOURNMENT DBT:jp DRAFT BAKERSFIELD ~~T~~nY~ii Randy Rowles, Chair ' . ' i~/~ Irma Carson Kevin McDermott / AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, January 5, 1998 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12:20 p.m. Present: Councilmembers Randy Rowles, Chair; Irma Carson; and Kevin McDermott 2. APPROVAL OF DECEMBER 8, 1997 MEETING MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None 6. NEW BUSINESS A. BAKERSFIELD SIGN (The Committee moved item 6(A) under new business, the Bakersfield Sign issue, ahead of all items on the agenda.) The Public Works Director gave a brief presentation on an engineering study which indicated it would cost approximately $90,000 to seismically retrofit and restore the bridge structure. Complete removal of the bridge would cost approximately $31,000. A representative of the nonprofit Bakersfield Save Our Sign Foundation requested the City give consideration to taking the lead in fund-raising efforts to restore the bridge. BUDGET AND FINANCE COMMITTEE Monday, January 5, 1998 Page -2- The Committee recommended a $10,000 contribution from CDBG funds to the nonprofit foundation be earmarked for this project in the fiscal year 1998-99 budget, contingent upon the nonprofit foundation raising the remaining funds necessary to restore the bddge. The Committee felt a $10,000 City contribution would assist the foundation as the lead agency in its fund-raising efforts for this project. 5. DEFERRED BUSINESS A. COST RECOVERY SYSTEM This item was deferred until the next Committee meeting. B. ESTABLISHMENT OF NEW REDEVELOPMENT AREAS For the January 5, 1998 Budget and Finance Committee meeting, the Committee met with the CDDA Ad Hoc Committee to receive input on this issue as well as review the guiding principles of the CDDA. The Budget and Finance Committee clarified that establishing new redevelopment areas is not an economic "quick fix" for the proposed areas. The Committee indicated it could take as long as ten years before evidence of economic revitalization would take place in the proposed redevelopment areas. There was some discussion regarding the timeline for implementation of the proposed redevelopment areas, obtaining a redevelopment consultant to assist staff with the project and CDDA involvement throughout this process. The Committee Chairman indicated a desire to meet regularly with the CDDA Ad Hoc Committee throughout this process. The Economic Development Director indicated it would take approximately 14 months to get the proposed redevelopment areas and tax increment information in place to move forward. For the February 2, 1998 Committee meeting, staff Was directed to prepare an implementation proposal and timelines for moving this process forward. Once the requested information is provided, the Committee will make a recommendation to the full Council. 7. ADJOURNMENT The meeting was adjourned at 1:23 p.m. cc: Honorable Mayor and City Council REDEVELOPMENT STUDY AREA BOUNDARIES SOUTHEAST BAKERSFIELD AREA ~2 ~~ EAST BAKERSFIELD GUIDING PRINCIPLES OF THE CDDA The Central District Development Agency (CDDA) is committed to the alleviation of blighting influences through the careful and deliberate use of redevelopment as defined by State of California law. The CDDA has made every effort to do so in accordance with the policies and practices of the City of Bakersfield. The CDDA has acted in a prudent fashion and has established strong fiscal controls in an effort to strengthen its capacity to assist in the continuing downtown revitalization. By firmly addressing some of the miscues of the past, the CDDA has striven to restore the confidence of the entire Bakersfield community regarding the practicality and usefulness of redevelopment as a tool for addressing blight. This has required sound judgment, studied deliberation and the entire avoidance of controversy. The CDDA has recognized the role it has been asked to play and continues to support the City of Bakersfield in areas of mutual benefit. Through this partnership with the City of Bakersfield, the CDDA has participated in a number of high profile projects such as the Holiday Inn Select, the Chester Avenue Streetscape, and most recently the Arena Project. In all of these instances (and in other smaller projects), the CDDA has sought to ask the right questions, attempt to provide adequate safeguards and provide forums for citizen input. The CDDA has been careful to comply with all applicable state laws as contained in Section 33,000 of the California Health and Safety Code. The CDDA is conscious of the elements of controversy associated with redevelopment in general and in Bakersfield particularly, due to the history of certain redevelopment projects. In order to gain the public's confidence, the CDDA has required that Agency assistance be based on the developer's performance. In essence, this has meant that no up-front assistance is offered and that instead assistance is made available through revenue generated by the project itself. This approach has meant that if the developer or property owner fails to perform, the agency is relieved of any obligation to provide assistance. In this scenario, no public funds would have been expended. A second result from this performance-based approach is that by limiting assistance to the revenue's generated by a completed project, a cap on the total mount of assistance can be easily established. Additionally, the CDDA has required additional levels of security (personal guarantees, etc.) in order to further reduce all possible liabilities. It is anticipated that this operational approach will remain unchanged. In closing, the CDDA is aware of the difficulty in overcoming the perceptions of the value of redevelopment given some historical occurrences. It is only through continued vigilance, prudent stewardship and a commitment to the highest professional standards, that the CDDA can continue to be a community asset. The mission of the CDDA is simple and unambiguous. In the simplest terms, the CDDA is committed to assisting the City of Bakersfield in addressing the problem of urban blight and to continue building the confidence of Bakersfield's citizens and their elected officials by adhering the highest standards of public trust. Adoption of a Redevelopment Plan Designation of Survey Area Preparation of Preliminary Plan County Fiscal Officer's Report Form Project Area Committees Prepare Preliminary Report Prepare Redevelopment Plan Environmental Impact Report Report to City Council & Agency Notifications after Plan Adoption Printed: 1/30/98 Page 1 TENTATIVE TIMELINE FOR CONSIDE -RATION OF ESTABLISHMENT OF NEW REDEVELOPMENT PROJECT AREAS Step 1 - City Council approved CDBG Amendment (at the meeting of January 22, 1997) for $100,000 including $10,000 to conduct a trend analysis of assessed valuation for the proposed redevelopment project area(s). Step 2 - Staff initiated a request for proposal for consulting services for a trend analysis of assessed valuations. The analysis will review assessed valuations for past ten years and based on the existing trend forecast possibility of tax increment generation. Consultant was selected on April 25, 1997 Step 3 - Conducted trend analysis. Trend analysis completed on July 2, 1997 Step 4 - Returned to City Council for review of trend analysis findings on July 16, 1997. Step 5 - Budget & Finance Committee met on August 11, 1997 to discuss report. Budget & Finance deferred further consideration until staff addressed additional questions. Step 6 - Budget & Finance Committee met on December 8, 1997. Budget & Finance requested meeting with CDDA representatives and also requested development of guiding principles utilized by CDDA in consideration of projects. Step 7 - Following the meeting on January 5, 1998 the Budget & Finance Committee may forward a recommendation to City Council. If Council then decides to initiate action on redevelopment project areas the following actions would be initiated. Step 8 - Initiate RFP for consulting services for the establishment of redevelopment project area(s), followed by selection of consultant (subject to Council approval). Step 9 - Initiate redevelopment project area(s) formation by designating a survey area the balance of the process is illustrated with the following list of milestones: Preparation of Preliminary Plans County Fiscal Officer's Report Project Area Committee Formation Preparation of the Preliminary Report Redevelopment Plan Preparation Environmental Impact Report Report to the Legislative Body Notifications after Plan Adoption This process takes from 9 to 12 months project area formation process. DIk:PSJWSLREDVAREA.STP AppendLx B lllustrative Time Schedule and Procedural Guide for the Adoption of a Redevelopment Plan* ScAeduled Date and ~4ction 'Month 1, Day I Project Area, description of Project Area conditions, 1. CITY COUNCIL designates survey area. H&SC a five-year implementation plan, financing methods, § 33310.** relocation plan, neighborhood impact report, report Action or document required of the County Fiscal Officer, analysis of same by the Council Resolution No._ Agency, etc.); and determine whether a Project Area Committee will be formed. After Month 1, Day I /iction or document required 2. AGENCY staff and consultants review General Plan Preliminary Plan; Section 33344.5 Preliminary Re- for compliance with state law. port; Redevelopment Plan; Section 33352 Report; and, ff applicable, PAC formation procedures, no- After Month 1, Day I rices, etc. and prior to Item No. 5 3. AGENCY staff and consultants identif3. property Month 1, Day 16 ownership and business interests, if any, of Agency, 5. PLANNING COMMISSION selects Project Area Council and Planning Commission members and boundaries, approves Preliminary Plan, and forwards other City officials in the proposed Project Area and Preliminary Plan to Agency. H&SC §§ 33322 and determine whether any conflicts exist. 33325. ' /iction or document required /iction or document required Letter to Council and Agency regarding disclosure Planning Commission Resolution. and disclosure forms. Review by City Attorney or No. Special Counsel of economic interests and identifi- cation of conflicts. Month 2, Day 6 6. AGENCY accepts Preliminary Plan, directs prepara- After Month 1, Day I tion of Redevelopment Plan and authorizes trans- 4. AGENCY staff and consultants commence prepara- mittal of information to taxing agencies and officials. tion of Preliminary. Plan; Section 33344.5 Prelimi- ~Ica'on or document required nary Report; Redevelopment Plan; and Section 33352 Agency Resolution No. Report (which includes reasons for selection of the Month 2, Day 6 · For the purposes of this illustration, the following assumlY 7. CITY COUNCIL determines whether it is necessary dons have been made: (1) Month 1, Day 1 is a Monday and all months have 30 days; (2) the Council and the Redevel- to form a Project Area Committee, and if so, adopts opment Agency hold their regular meetings on the first and a procedure for formation of the Project Area Corn- third Mondays of each month; (3) the Planning Commis- mittee. II&SC § 33385. sion holds its regular meetings on the first and third Tues- ' .. days of each month; and (4) the City is a general law city./Iction or document required All references are to the Health and Safe~ Code unless Council Resolution No. otherwise noted. Procedures for Formation of PAC, if applicable. 397 · Election o£ a Project Area Committee must be held Fiscal Offcer a d~rerent axse, trment roll will be u. ted, within I00 days after the Project Area is selected if there are additional ~veciJic procedures required under the Project includes a substantial number of Iow- and It&SC § 35328.5. moderate-income families and the Redevelopment Plan contains eminent domain authority to acquire Month 2, Day 7 residences, or contains pubLic projects that will dis- place a substantial number of Iow- and moderate- 9. AGENCY staff mails, certified mail, return receipt income persons, requested, Notice of Preparation o£ Draft ELR to: · I.f a Project Area Committee is to be formed, pro- (a) Responsible agencies [CEQA Guidelines cedures must be adopted and followed for such for- § 15082(a)]; marion, inducting publication and mailing of notices, (b) Federal agencies [CEQA Guidelines holding o£ public meetings, distribution of informa- § 15082(a)]; tiorz, City Council public hearing on adoption of (c) Trustee agencies [CEQA Guidelines election procedures, etc. § 15082(a)]; · If no Project Area Committee is created, the (d) Affected taxing entities III&SC § 33333.3]; Agency must consult with and obtain the advice of (e) Cities and counties which border the City [Pub- residents and community organizations, and pro- lic Resources Code § 21153]; and vide such persons with the Redevelopment Plan prior to submitting it for adoption. (f) If the Project has statewide, regional or area- wide significance, u-ansportation planning agencies or Month 2, Day 7 public agencies with potentially affected transporta- 8. AGENCY staff transmits (a) legal description and tion facilities. Public Resources Code § 21092.4. map of boundaries of Project Area, 0a) statement that If any of the above agencies ate state agencies, a copy Redevelopment Plan is being prepared, and (c) indi- of the Notice must be sent to the State Clearing7 cadon of the last equalized assessment roll proposed house. [CEQA Guidelines § 15082(d)] AGENCY to be used for tax allocations, to the County Auditor, staff posts the Nodce with the County Clerk for 30 Assessor and Tax Collector, the State Board of Equal- days. [Public Resources Code § 21092.3] The Notice ization and the governing bodies of all taxing agen- must state whether any portion of the Project Area is cies in the Project Area. H&SC §§ 33327 and 33328. on the hazardous waste lists compiled under Coy- Action or documerarefuired ernment Code § 65962.5. Public Resources Code Letter and Statement of Preparation of Redevelop- § 21092.6. ment Plan; Fi.ling Fee (to State Board of Equalization). Action or document required Optional actions or documents Notice of Preparation. '4gencymayal'~°reque'rtC°un(y'4udit°rt°includeinit'r After Month 2, Day 7 report assessed valuation data for the ?ast j%e years (instead of the standard preceding one year data 6nly). 10. AGENCY staff and consultants commence prepara- tion of a Draft Environmental Impact Report, NOTES ,4ction or document required · veon receie' ofta" i.fo.~aO~ CO0,WTrmSCaZ Draft EIIL OF37CER 3egins Wepar~on of report idenafying total ass~sed valuation of all taxable trroper~/ within Project After Month 2, Day 7 Area for the preceda'ng year (or, Vrequ~ted by the dgenaj, for the Frecedingfive years), each taxing agency receiv- 11. Additional EIR Consultations lng taxes, estimated taxes available to the Agency, etc. (a) AGENCY staff may consult with Project oppo- Il&SC ~ 55528. nents for the purpose of securing all conflicting 398 KE~£v£LoPM£.',rr views prior to final preparation of a Draft ELK Month 4, Day 9 or " [14"oodland Hills Reddenm ~lsca., Inc. v. City Council Month 5, Day 9 (1980) 26 Cal.3d 938] 13. C0unt7 Fiscal Report due wid~ 60 days (or, ii Opdonal actions Agency requests imeormadon for preceding five years, or documents 90 days) of th~ date of filing by the Agency with the · State Board pursuant to Section 33327, and is sub- :~totice in locdnew~paperofgeneralcirad~.on adv/n'ng mitted to the Agency and all affected taxing agen- community that an E27~ it being prepared for the pro- ties. H&SC § 33328. pG,'ed Project and inviting commengr; letters to Project /Ires otto:ers and businesses; letters to other per, om and ,4trion or document recruited groups; and/or staff and conadtant, r bom communiq/ Count), Fiscal Report. meeting for the rur~ase of lrroviding a £~lic forv_m for ditcu.~rion of the proposed Project in tertm of community NOTES concerns, Project alternatives and environmental i~rue~ related to the Project. . ]je tile proposed base year assessment roll has not been effualized at tile time tile filing by tile ,dGENC~' it (b) If requested ]~y the State Department of Tr~ns- received, the Coun(F Fitcal Report it not due until 60 (or portation, AGENCY shall call at least one scoping 90) days after tile effualization date (,4ug~st 20). meeting for a proposed Project which may affect highways or other facilities under the jurisdiction of the State Department of Transportation. Public Re- .,~ter receipt o£ report in Item 13 sources Code § 21083.9. 14. AGENCY staff consults with each taxing agency that receives taxes from property in the Project Area and NOTES prepares a summary of the consultation. H&SC · The,,IGE,,VCYshall call the scoping meeting as soon as §§ 33328 and 33352. possible, but not later than $0 days a~er receiving the reffuest jS'om the State Dopartment of TransportaZion. NOTES · Thu m~t oc~or top~lic~aon of the notice of~. (c) Prior to completion of the Draft EIR, the Agency lic hearing on adoption of the RedecelopmentPlan. The shall consult with and obtain comments from any summary of this conadtation must be included as part of city or county which borders on the City within the ~gency's Section $$$$2 Report to the Ci~/Coundl. which the Project is located. Public Resources Code § 21153. (d) If a Project has statewide, regional or areawide Month 4, Day 16 significance, the AGENCY must consult with tx-ans- 15. AGENCY approves Preliminary Report and refers it portation planning agencies and public agencies to each affected taxing agency. H&.SC § 33344.5. which have transportation facilities within the pro- Action or document reguired posed Project Area which could be affected by the Project. Public Resources Code § 21092.4. Agency Resolution No. Preliminary Report; Transmittal Letter Month 3, Day 11 Month 4, Day 26 12. All comments due in response to Notice of Prepa- 16. If applicable, election of Project Area Committee radon of Draft EIB. (30 days from receipt of NOP). must be held. H&SC § 33385(d)(1)... Public Resources Code § 21080.4; CEQA Guide- dcdon or document required lines § 15082('0). Forms and materials required for election. Appendix B Schedule for Redevelopment Plan Adoption 399 Prompdy after election in Item 16 Month 6, Day 6 17. AGENCY smffu-ansmits to City Council information 21. PLANNING COMMISSION reviews proposed concerning the actions taken to form the Project Area Redevelopment Plan and Draft E~ and submits Committee, including the election results. CITY report and recommendations concerning Redevel- COU'NC[L adopts finding that its adopted proce- opment Plan to Agency with in 30 days of referral. dures were followed in the election of the Project H&SC § 33347. Area Committee. H&SC § 33385(d)(2). Action or document required Planning Commission Resolution. Month 5, Day 7 No. 18. AGENCY determines idequacy of Draft E[R and approves Draft EIR for circulation. CEQA Guide- Month 6, Day 12 (Month 6, Day 26, lines § 15084. it' State Clearinghouse is required) Action or document required 22. Last da)' for receipt of public comments on Draft CIR. Agency Resolution No. AGENCY staff evaluates comments received from agendes and persons reviewing Draft EIR and pre- pares Final ELR. [Public Resources Code §§ 21092 Month 5, Day 7 and 21153; CEQA Guidelines §§ 15087, 15088 19. AGENCY refers proposed Redevelopment Plan to and 15089] Planning Commission and to the Project Area Com- Action or document required mittee, ff applicable, or provides it to residents and community organizations with whom it has consult- Final E[R. ed. H&SC §§ 33346 and 33385. Action or document required Month 7, Day 10 Agency Resolution No. 23. AGENCY stiff and consultants complete prepara- Redevelopment Plan. tion of Final El2q. and Sect. ion 33352 Report to the City Council, and either mail responses to public agencies who commented on the Draft EIR or send Month 5, Day 8 the Final EIR to those commentors at least 10 days 20. AGENCY staff Fries Notice of Completion with the prior to the joint public hearing. Public Resources Office of Planning and Research [Public Resources Code § 21092.5. Code § 21161] and circulates Draft EIR to con- Action or document required cerned agencies and indMduals and to each affect- Final E[R; Section 33352 Report; Send either ed taxing agency for minimum 30-day re~4ew peri- Written Responses or Final EIR to commentors. od. AGENCY staff publishes notice inviting public comments on Draft EIB, and posts such notice with the County Clerk for 30 days. Public Resources Month 7, Day 17 Code §§ 21092, 21092.3 and 21153; CEQA Guide- 2°,. AGENCY adopts its Report to the City Council on lines § 15087; H&SC § 33333.3. (If State Clearing- the Redevelopment Plan, submits Report. proposed house is used, the re~'iew period is 45 days and the Redevelopment Plan and Final EIR to City Council. cover form required by the State Clearinghouse is and requests holding joint public hearing on Rede- used instead of the Notice of Completion form.) velopment Plan and Final EIB. H&SC §§ 33351, 33352 and 33355. Action or document required Nodee of Completion (or State Action or document required Clearinghouse Form); Public Notice. Agency Resolution No. 400 REDEV£LOPMENT Month 7, Day 17 land as shown on the records of the County Rec~der 25. AGENCY adopts Rules for Owner Partidpation and 30 days prior to the date the notice i~ lmblished. Extension of Reasonable Preferences to Businesses. H&SC §§ 33349 and 33350. H&SC §§ 33339.5 and 33345. ,4ction or document refuired ,4etlon or document required Notice; Statement; Affidavit of Mailing. Agency Resolution No. ' ' OP Rules. Month 7, Day 18 Month 7, Day 17 30. AGENCY staff mails, certified mail, return receipt requested, copies of the notice of joint public hear- 26. CIT~. COI~'CIY, receives documents from Agency ing to the governing body of each o£ the taxing and calls joint public hearing on Redevelopment agencies which receives taxes from property in the Plan and Final EIR. H&,qC § 33355. Project Area. H&SC § 33349. Action or document required Council Resolution No. ,4ction or document refuired Notice; Affidavit of Mailing. Month'7, Day 17 Month 7, Day 18 or no 27. CITY COCt-NCIT. elects to receive all or a portion of later than Month 8, Day 6 the tax revenues allocated to the Agency and attrib- 3 i. AGENCY staff mails, by first class mail, copies of utable to tax rate increases imposed for the City. H&SC § 33676. notice of joint public hearing to all residents and businesses in the Project Area at least thirty (30) ,4etlon ar document required days prior to hearing (ti cost of obtaining mailing Counci] Resolution No. addresses is reasonable). H&SC § 33349(c). ~lction or document refruired Month 7, Day 18 Notice. 28. AGENCY staff sends to newspaper notice of joint public hca?in§ on Redevelopment Plan and Final NOTES EII:L The notice must contain a legal description of · Notice may be addr~sed to occupant. the boundaries of the Project Area and a general statement of the scope and objectives of the Rede- velopment Plan. Newspaper publishes notice once a By Month 8, Day 19 week for four successive weeks on Month 8, Day 8; 32. AGENCY obtains court reporter for public hearing Month 8, Day 15; Month 8, Day 22; and ~Ionth 8, transcript. Day 29. H&SC §§ 33349 and 33361. /lction or document required By Month 8, Day 26 Notice of Joint Public Hearing. 33. AGENCY staff prepares Procedural Outline and attaches certified copies of exhibits for the joint pub- Month 7, Day 18 lic hea_4n$ indudin§ Affidavit of Publication, Affi- 29. ACENCY staff mails copies of nodces of joint public davit of Mailing Nodce to Property Owners, Affidavit hear[nS and statement re§arding property acquisition of Mailiag Notice to Taxing Agencies, Certification of to property owners in Project Area by first class mail. Certain Official Actions, Report of the Agency, Final Notice and statement are mailed to last known EIK Redevelopment Plan, Owner Partidpation Rules assessee of each paxcel of land at his last known and Written Comments Received. address as shown on the last equalized assessment ,4etlon or document required roll of the county, or to the owner of each parcel of Procedural Outline with exhibits listed above. Appendix B Schedule for Redevelo£ment Plan /ldo?tion 401 By Month 8, Day 26 'C°) 'AGENCY adopts resolution finding that the 34. AGENCY staff reminds all scheduled speakers of of taxes allocated fi.om the Project for the purpo_~ hearing and sends them copies of the Procedural of improving and increasing the eommunit).,s Outline. ply of low- and moderate- income housing Outsid the Project Area will be of benefit to the Projec~ By Month 8, Day 26 quired if the Project Area does not include site. for Iow- and moderate-income 35. AGENCY staff prepares agenda and form for speak- housing). ers at hearing. § 33334.2(g). ,4ction or document refuired .,tction or document refuired Agenda; Speaker Form. Agency Resolution No. '" (c) AGENCY adopts resolution approving Redevel. Prior to Month 9, Day 6 opment Plan. 36. If applicable, PROJECT AREA COMMI'TTEE re- ,4ction or documemrefuired views proposed Redevelopment Plan and may sub- Agency l~esolution No. mit report and recommendations to the Agency. H&SC § 33347.5. Month 9, Day 6 or ~tcffon or documentre~uired Month 9, Day 20 Project Area Committee report 39. CiTY COUNCFI acts on adoption of Redevel- and recommendations, if any. opment Plan and consideration of Final EIB. Month 9, Day 6 (a) CITY COL..'NCff considers Report of Agency,, Final EItL, report and recommendations of Planning 37. CITY COUNCIL and AGENCY hold joint public Commission, report and recommendations of Project hearing on Redevelopment Plan and Final EI~. and Area Committee, ff any, and all evidence and tesfi- hear all evidence and testimony for and against mony for and against the proposed Redevelopment adoption of Redevelopment Plan and certification of Plan, and adopts written findings in response to each Final EIR. written objection to the Redevelopment Plan from NOTE fected taxing entities and property owners. H&SC § 33363. /BL TERN/I TE D~I TE $ /IR.E carI/Y~ FOR d CTION$ /lction or document refruired $8-4& 2T I~tI1WEaV OBJECTIONS TO TI~ PRO- POS£D RED£ I/T-.LOP~ PL,4N da~ RECEIFED Council Resolution No. .4 T OR PRIOR TO TIlE JOAVT PUBLIC ttF. MRING, Written Findings. 17~,4LTERN,4TE D~ITESdff~pLy. CO) CiTY COL~'CIL adopts resolution finding that the use of taxes allocated from the Project for the Month 9, Day 6 or purpose of improving and increasing the communi- Month 9, Day 20 ty's supply of low- and moderate-income housing outside the Project Area will be of benefit to the 38. AGENCY acts on adoption of Redevelopment Plan Project (required if the Project 3xea does not include and certification of Final EIR. sites for low- and moderate-income housing). H&SC (a) AGENCY adopts resolution certifying comple- § 33334.2(g). tion of the Final F_,IR and making findings based ~4Cd°n or document refuired upon its consideration. CEQA Guidelines fi§ 15090, Council Resolution No. 15091, 15092 and 15093. zlction or document refuired Agency Resolution No .... Not required, if Agency and Council are the same~ 402 REDEVELOPME.'Wi- (c) CITY COL~-NCIL adopts resolution m~ing find- ~onth g, Day 21 or hags based upon consideration of the Final ELR. Month 10, Day 5 CEQA GuideLines § 15096(e), (O, (g) and (h). 42. CITY CLERK sends Ordinance to newspaper for /lction or document r~uired publication. Council Resolution No. (d) .~ter consideration of all objections and adoption Month 9, Day 21 or of written findings in response to written objections Month 10, Day 5 from property, owners and affected taxing entities, if at3. CITY CLERK sends copy of Ordinance adopting any. CITY COUi'NCIZ introduces Ordinance adopt- Redevelopment Plan to the Agency. H3e3C § 33372. hag the proposed Redevelopment Plan for first read- ing= It&SC § 33364.. ,4ction or document required ,4ction or document re~red Letter from Clerk transmitting Ordinance. Ordinance No. Month 9, Day 21 or Month 10, Day 5 Month 9, Day 20 or Month 10, Day 4 44. CITY CLERK records, with County Recorder, description of land in Project Area and statement 40. CITY COU~-NCIL has second reading and adopts that redevelopment activities have been corn- Ordinance adopting Redevelopment Plan. H&$C menced. H&SC 9 33373. 99 33365 and 33366. Action or document required dction or document reffuired Ordinance No. Letter from Clerk filing documents; Notice of adopdon of Redevelopment Plan to be recorded. Month 9, Day 21 (No later than Month 9, Day 21 or Month 9, Day 27) or Month 10, Day 5 Month 10, Day 5 (No later than Month 10, Day 11) 45. CITY CLERK notifies the Building Department of 41. AGENCY Secretary/City Clerk file Notice orDerer-, the adoption of the Redevelopment Plan and its ruination re Final EIR with County Clerk and, if nec- effect upon their operations. H&.SC 9 33374. essary, the Office of Planning and Research within 5 working days [Public Resources Code § 21152; Action or docurnentrefuired CEQA Guidelines §9 15094 and 15096(0], with Cover Letter, Redevelopment Plan. payment of Department of Fish and Game fees required, ii' any. Public Resources Code § 21089. By Month I 0, Day 5 or .4ction or document required Month 10, Day 19 Notice of Determination. 46. Ordinance is published. Government Code § 36933. NOTES ' 3[ake ~re Notice of Determination is filed on behalf of By Month 10, Day 20 Or both the Agency (ar the lead agency) and the Ci~ (ar a Month 11, Day 4 responsible agency). 47. CYIT CLERK tr~si~its, by certified mail, return · MaAe rure the County Clerk posts this Notice ('Public receipt requested, a copy of Ordinance adopting the Resources Code § 21152), ar the 50-day statute of lirn- Redevelopment Plan, legal description of land with- itadons doean't run unless and until it is posted in the in the Project Area and map or plat indicating Counq/Clerk'~ offce, boundaries of project Area to County Auditor and Appendix B Schedule/'or Redevelopment Plan ddopdon 403 Tax Assessor, to State Board of Equalization and to all taxing agendes in Project Area. H&SC § 33375. Action or doc~nent ceqruir~d Letter from Clerk transmitting documents. Month I0, Day 20 or Month 11, Day 4 48. Ordnance adopting Redevelopment 'Plan becomes effective 30 days after adoption (90 days for cities over 500,0(X) population). H&SC § 33365 and 33378. PURPOSE OF REDEVELOPMENT The California Community Redevelopment Act was first enacted in 1945 as an effort to address the decay that was and is occurring in the central areas of many California commUnities. The Act gave communities the authority to establish redevelopment agencies andthe authority to fight urban decay. In the Act, now over fifty years old, certain basic tOolS ~vere ~anted to redevelopment agencies. Those tools are just as important today as they were fifty years ago in stopping the advance of urban blight. It is these tools that make redevelopment such a unique element of a community's strategy in preserving a strong economic base. Those tools are: · The authority to buy real property and if necessary the power to use eminent domain. · The authority to develop the property (but not to construct buildings). · The authority and obligation to relocate persons who have interests in property acquired by the agency. · The authority to finance operations through borrowing. · The authority to impose land use and development controls in pursuing a comprehensive plan. The establishment of a redevelopment project area is intended to serve as a catalyst in sparking private reinvestment. In fact, while it is true that a redevelopment area can only be established if private enterprise acting alone cannot reverse the decay that is occurring, redevelopment is equally dependent on private investment. It is this mutual interdependence that has made redevelopment the significant tool it is. DEFINITION OF BLIGHT In order to establish a redevelopment project area, perhaps no other finding is more significant than that which evidences the prevalence of blight. The Community Redevelopment Law requires that blighting conditions be so substantial that they cause a reduction to the area or such a lack of proper utilization that it becomes a serious physical and economic burden that neither private enterprise or government action can cure. State law recognizes and defines both physical and economic conditions as forms of blight. Physical conditions that cause blight are as follows: Unsafe or unhealthy buildings. · Serious building code violations. · Dilapidation and deterioration. · Defective design or physical construction. · Faulty or inadequate utilities. · Substandard design. · Lack of parking. · inadequate size. · Incompatible adjacent uses. · Irregular lot for, size, or shapes. · Multiple ownership which hinders proper usefulness and development. Economic blight is evidenced by the following: · Depreciated or stagnant property values. · Impaired investments. · Properties containing hazardous wastes. · Abnormally high business vacancies. · Abnormally low lease rates. · High turnover rates. · Abandoned buildings or excessive vacant lots. · A lack of commercial facilities normally found in neighborhoods (including grocery stores, drugstores, and banks). · Residential overcrowding. · An excess of bars or liquor stores. · A high crime rate that constitutes a serious threat to the public safety and welfare. It is by no accident that California redevelopment statutes are contained in the 33000 section of the Health and Safety Code. The state legislature early on recognized the connection of blight to the public's need for safety and welfare. This concept has recently been expanded and now recognizes the serious impact economic blight has on a community's well being. THE ROLE OF THE PROJECT AREA COMMITTEE (PAC) ' In recognizing the extraordinary authorities granted in redevelopment law, the state legislature wanted those who potentially would be most directly impacted to be given a formal role. Thus, California law requires that a PAC be established if a substantial number of low and/or moderate income persons reside within the area and the redevelopment agency has the authority to acquire residential property by eminent domain. A PAC is also required if the redevelopment plan calls for one or more public projects that will result in the displacement of a substantial number of low and/or moderate income persons. In forming the PAC neither the City Council nor the redevelopment agency may appoint anyone. The PAC is created by calling on all parties that must be represented who then elect one of their own to serve on their behalf. State law identifies four distinct groups that must be represented on the PAC. They are: · Residential owner occupants. · Residential tenants. · Business owners. · Existing organizations within the project area. The PAC serves as an advisory group to the redevelopment agency. The specific areas that the redevelopment agency must consult with the PAC, are in the policies that affect the planning and provision of residential facilities for residents displaced by the project or other policy matters affecting the project area residents. Although the PAC continues to be consulted with as the proposed redevelopment plan is being prepared, the single biggest action asked of the PAC awaits at the end of the six to nine month planning process. Once all the data has been collated and the analyses have been completed, the PAC is asked to review the entire redevelopment plan and make its recommendation on the establishment of the project area. If the PAC does not make a recommendation to approve the establishment of the project area, a super majority vote by the City Council is required. After adoption of the project area, the PAC remains in place for three years. During all this time the City Council and redevelopment agency are required to provide the financial support necessary for the PAC to fulfill its role. FIVE-YEAR IMPLEMENTATION PLAN Recent changes in redevelopment law focusing on greater accountability in the progress being made within each project area, now require the adoption of a five year implementation plan. In establishing a new project area this is incorporated into the final redevelopment plan and is then updated at least every five years. The implementation plan must contain specific goals and objectives relating to both projects and estimated expenditures. Most importantly the plan must discuss how these projects and expenditures will eliminate the documented blighting conditions. The plan must also describe the agency's low and/or moderate income housing programs. Between the second and third year of the implementation plan timeframe, a public hearing must be held to review the implementation plan's progress. As indicated earlier, this requirement came from the state legislatures's desire for greater accountability on the part of redevelopment agency in alleviating blight. Single Project Area .. Greatest Cost Savings Two Project Areas .P. arallel · 1 Year + Implementation · Economies of Scale · Cost Borne in Single Year · Limits on CDBG (Forgivable) · Use of Other Funds (Loan or Forgivable) Redevelopment Plan Adoption Survey of Estimated Costs (without legal component) "Parallel" Firm A $145,000 Firm B $200,625 Firm C $256,500 Firm D $459,000 Average Cost by Scenario "Parallel" Both project areas are adopted simultaneously. 01/23/98 P :\CDDA\COSTMATR,WB2 Assumptions Used to Create Examples of Costs and Revenues · Project Formation Proceeds in a Parallel Fashion · Consultant Cost - $200,625 (Range of Estimate from Four Firms - $145,000 to $389,000)* · Legal Assistance - $25,000** (Range of Estimate - $13,000 to $70,000)* · Revenue Based on 2% Growth~o Projects · Graph and Tables Use Collapsed Costs and Revenues Loan of $135,625 at 6% Interest ($225,625 - $90,000 of Available CDBG Funds)** * Forgiven Cost of $225,625 * Actual Cost Determined through Request for Proposal (RFP) ** On-Call Basis Only *** Limit on Use of CDBG Funds Based on 20% Cap of Annual CDBG Entitlement Estimated Operating Parallel - Loan 1998 1999 2000 2001 2002 2003 2004 2005 2006 Beginning Balance (1) 0 (135,625) (186,322) (238,033) (243,063) (197,687) (101,959) 54,445 274,100 Available Tax Revenue (2) 0 50,000 102,000 155,000 209,000 260,000 318,000 375,000 433,000 Operating Expenses (3) 0 22,969 23,199 23,431 23,665 23,902 24,141 24,382 24,626 Personnel Expenses (4) 0 Principal Planner 0 69,590 71,330 73,113 74,941 76,814 78,351 79,918 81,516 Development Assoc. 0 0 48,004 49,204 50,434 51,695 52,987 54,312 55,670 Interest Expense (6%) (5) 0 8,138 11,179 14,282 14,584 11,861 6,118 (3,267) 0 Total Agency Expenses 0 100,697 153,712 160,030 163,624 164,272 161,596 155,345 161,812 Fund Balance $0 ($186,322) ($238,033) ($243,063) ($197,687) ($101,959) $54,445 $274,100 $545,288 Assumptions 1. Beginning balance in FY 98-99 is the cost of parallel implementation of project areas less CDBG funds. 2. Revenues are assumed to grow by 2% each year. 3. Operating expenses are assumed to grow by 1% each year. 4. Personnel expenses are assumed to grow by 2.5% each year. 5. Interest expense is assumed to be 6%, which is the City's current investment return rate. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Estimated Operating Parallel - Forgivable 1998 1999 2000 2001 2002 2003 2004 2005 2006 Beginning Balance 0 0 (42,559) (83,091) (73,839) (13,879) 93,710 256,231 472,619 Available Tax Revenue (1) 0 50,000 102,000 155,000 209,000 260,000 318,000 375,000 433,000 Operating Expenses (2) 0 22,969 .23,199 23,431 23,665 23,902 24,141 24,382 24,626 Personnel Expenses (3) 0 Principal Planner 0 69,590 71,330 73,113 74,941 76,814 78,351 79,918 81,516 Development Assoc. 0 0 48,004 49,204 50,434 51,695 52,987 54,312 55,670 Total Agency Expenses 0 92,559 142,532 145,748 149,040 152,411 155,479 158,612 161,812 Fund Balance $0 ($42,559) ($83,09'1) ($73,839) ($'13,879) $93,7'10 $256,23'1 $472,619 $743,807 Assumptions 1. Revenues are assumed to grow by 2% each year. 2. Operating expenses are assumed to grow by 1% each year. 3. Personnel expenses are assumed to grow by 2.5% each year. Note: The estimated operating numbers for this scenario are identical to "Staggered-Forgiveable." 08107197 A:\OPERPARF.WR2 ! x:~ 0 0 0 0 0 0 ~ 0 0 0 0 0 ~ 0 0 0 0 0 Combined Areas .,-' Combined Areas 2% Growth Scenario (000's Omitted) FY 98-99 Year 1 2 3 4 5 6 7 8 9 10 11 12 Assessed Valuation 429,146 437,729 446,483 455,413 464,521 473,812 483.288 492,954 502,813 512,869 523.126 533,589 Year 11 Base (21% Pass Through 10,257 20.720 Year 31 Base (14% Pass Through Increment Assessed Valuation 8,414 16,997 25,752 '34.681 43,790 53,080 62,556 72,222 82,081 92,137 102,395 112,857 Propedy Tax Revenue 84 170 258 347 438 531 626 722 821 921 1,024 1,129 less Housing Set Aside (17) (34) (52) (69) (88) (106) (125) (144) (164) (184) (205) (226) less 25% Pass-Through (17) (34) (52) (69) (88) (106)' (125) (144) (164) (184) (205) (226) less 21% Pass-Through Begin Pass-Through: (55) (72) less 14% Pass-Through Total Pass-Through (34) (68) (103) (139) (175) (212) (250) (289) (328) (369) (464) (524) Agency Tax Revenue 50 102 '155 208 263 3'18 375 433 492 553 560 605 Combined Areas Combined Areas 2% Growth Scenario (O00's Omitted) Year 13 14 15 16 17 18 19 20 21 22 23 24 Assessed Valuation 544,261 555,146 566,249 577,574 589,125 600,908 612,926 625,184 637,688 650,442 663,451 676,720 Year 11 Base (21% Pass Through 31,392 42,277 53,380 64,705 76,256 88,039 100,057 112,315 124,819 137.573 150,582 163,851 Year 31 Base (14% Pass Through Increment Assessed Valuation 123,529 134,414 145,517 156,842 168,394 180,176 192,194 204,453 216,957 229,710 242,719 255,988 Property Tax Revenue 1,235 1,344 1,455 1,568 1,684 1,802 1,922 2.045 2,170 2.297 2,427 2,560 less Housing Set Aside (247) (269) (291) (314) (337) (360) (384) (409) (434) (459) (485) (512) less 25% Pass-Through (247) (269) (291) (314) (337) (360) (384) (409) (434) (459) (485) (512) less 21% Pass-Through (90) (109) (127) · (146) (166) (185) (206) (226) (247) (269) (291) (313) less 14% Pass-Through Total Pass-Through (584) (646) (709) (774) (839) (906) (974) (1,044) (1,115) (1,188) (1,261) · (1,337) Agency Tax Revenue 651 698 746 795 845 896 947 1,000 '1,054 1,110 1,166 1,223 Combined Areas .'. Combined Areas 2% Growth Scenario (000's Omitted) Year 25 26 27 28 29 30 31 32 33 34 35 36 Assessed Valuation 690,254 704,059 718,140 732,503 747,153 762,096 777,338 792,885 808,743 824,918 841,416 858,244 Year 11 Base (21% Pass Through 177,385 191,190 205,271 219,634 234,284 249,227 264,469 280,016 295,874 312,049 328,547 345,375 Year 31 Base (14% Pass Through 15,242 30,789 46,646 62,821 79,320 96,148 Increment Assessed Valuation 269,523 283,328 297,409 311,772 326,422 341,365 356,607 372,154 388,011 404,186 420,684 437,513 Property Tax Revenue 2,695 2,833 2,974 3,118 3,264 3,414 3,566 3,722 3,880 4,042 4,207 4,375 less Housing Set Aside (539) (567) (595) (624) (653) (683) (713) (744) (776) (808) (841) (875) less 25% Pass-Through (539) (567) (595) (624) (653) (683) (713) (744) (776) (808) (841) (875) less 21% Pass-Through (336) (359) (382) (407) (431) (456) (482) (508) (535) (562) (590) (618) less 14% Pass-Through ~ Begin Pass-Through: (110) (127) (145) (163) (182) (201) Total Pass-Through (1,414) (1,492) (1,572) (1,654) (1,737) (1,822) (2,018) (2,124) (2,232) (2,342) (2,454) (2,568) Agency Tax Revenue 1,282 1,341 1,402 1,464 1,527 1,592 1,548 1,598 1,648 1,700 1,753 1,807 Combined Areas Combined Areas 2% Growth Scenario (000's Omitted) Year 37 38 39 40 41 42 43 44 45 Totals Assessed Valuation 875,409 892,917 910,776 928,991 947,571 966,522 985,853 1,005,570 1,025,681 30,852,456 Year 11 Base (21% Pass Through 362,540 380.048 397,907 416,122 434,702 453,653 472,984 492,701 512,812 8,203,015 Year 31 Base (14% Pass Through 113,313 130,821 148,679 166,895 185,475 204,426 223,757 243,474 263,585 2,011,390 Increment Assessed Valuation 454,678 472.186 490,044 508,260 526,839 545,791 565,121 584,838 604,950 11,919,539 Properly Tax Revenue 4,547 4,722 4,900 5,083 5,268 5,458 5,651 5,848 6,049 119,195 less Housing Set Aside (909) (944) (980) (1,017) (1,054) (1,092) (1,130) (1,170) ('i,210) (23,839) less 25% Pass-Through (909) (944) (980) (1,017) (1,054) (1,092) '(1,130) (1,170) (1,210) (23,839) less 21% Pass-Through (647) (676) (706) (737) (768) (800) (832) (865) (899) (15,096) less 14% Pass-Through (220) (239) (259) (280) (301) (322) (343) (366) (388) (3,645) Total Pass-Through (2,685) (2,804) (2,926) (3,049) (3,176) (3,305) (3,436) (3,570) (3,707) (66,420) Agency Tax Revenue 1,862 1,918 1,975 2,033 2,093 2,153 2,215 2,278 2,343 ~"~,77~ 0 0 0 0 0 0 w"" 0 0 0 0 0