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HomeMy WebLinkAbout09/07/1990 Ken Peters°n, Chair Kevin McDermott Patricia M. Smith Jack Hardisty (Staff) URBAN DEVELOPMENT COMMITTEE MEETING Friday, September 7, 1990 12:00 p.m. City Manager's Conference Room AGENDA 1. Water Service to the Northeast 2. Economic Incentives Policy 3. Response to Grand Jury Report 4. Billboards GENERAL POLICY FOR ECONOMIC DEVELOPMENT The City of Bakersfield supports stimulating a healthy local economy through an economic development policy that targets the growth, diversification, and revitalization of. the Bakersfield 2010 General Planning Area. This policy includes commitments to the continuing diversification of our economic base, t~e expansion of existing businesses, and the nurturing of new businesses. When considering the provision of financial or other inducements, our efforts should focus on those new or existing businesses and industries which are consistent with our efforts to create a healthy local economy while having the leas~negative impact on environ- mental and other quality of life issues. mb W:M.JW217 9-5-90 DATE: AUGUST 8, 1990 (Revised 9/6/90) TO: MEMBERS OF THE GRAND JURY SUBJECT: RESPONSE TO GRAND JURY The City Council wishes to express its appreciation to the 1989-90 Grand Jury of the apProach taken in its examination of the efforts undertaken by the Central District Development Agency in revitalizing the central city area of Bakersfield. In particular the Council appreciates the use of a professional consulting firm in assisting the Grand Jur~ith such a highly complex matter as redevelopment. In accordance with Section 933 of the Penal Code of the State of California, the following is the formal response by the City of Bakersfield to the findings and recommendations of the 1989-90 Grand Jury for the County of Kern. STATEMENT: THE GRAND JURY RECOMMENDS THAT THE CITY COUNCIL REQUIRE THE AGENCY TO PREPARE A SPECIFIC AND DETAILED PLAN TO OUTLINE THE LONG-TERM FUNDING AND VIABILITY OF THE AGENCY. THIS PLAN SHOULD INCLUDE THE POTENTIAL SALE OR LEASE OF LAND BANK PROPERTIES. THIS PLAN ALSO SHOULD INCLUDE HOW THE STRUCTURING OF CURRENT PROJECTS UNDER NEGOTIATION WILL BE FUNDED. THE AGENCY MUST BE FULLY ACCOUNTABLE TO THE CITY COUNCIL AND THE PUBLIC. IF THE AGENCY IS NOT ABLE TO PROVIDE A DETAILED PLAN~ THE AGENCY'S ACTIVITIES SHOULD BE RESTRICTED TO LIMIT THE POTENTIAL FINANCIAL EXPOSURE TO ~E CITY. IN ADDITION~ THE PLAN SHOULD INCLUDE A STATEMENT AS TO HOW THE AGENCY WILL REPAY THE $1 MILLION LINE OF CREDIT OWED TO THE CITY. INVITE PUBLIC PARTICIPATION AND DEBATE IN CASE OF DOUBT OR DISPUTE AMONG THE COUNCIL MEMBERS. RESPONSE: The CDDA during Fiscal Year 1990-91 will. be formally addressing a specif~ and detailed plan outlining long term financial plan. In regards to the repayment of the $1 million debt owed to the City of_Bakersfield, the CDDA is to pay the City the principal sum with interest at the prime rate as set at Bank of America, Bakersfield on the 1st business day of each quarter for the ensuing quarter. ~bt repayment commenced in Fiscal year 1989-90 and will be included in all future budgets until paid in full (ten years after the first payment - January 2, 1990). .... ~j ............... ycar i~t~-^~+~ ~~- ............. ~ ........ ~ on ~a~zary ~, ~n ~ .............. flrs~ paymcnt. W: M. JW218A STATEMENT: DETAILED PROCEDURAL REQUIREMENTS'BE FULLY DEVELOPED AND DOCUMENTED IMMEDIATELY TO GUIDE NEGOTIATIONS AND TO MONITOR PROJECTS UNDER CONSTRUCTION AND CONSIDERATION. RESPONSE: the ~ .... ~^nt t CDDA adopted ~uidelines in 1988 that ~ state the informa- tion required to be submitted by any developer seekin~ A~eney assistance. The CDDA is continually seekin~ more effective ways of carryinE out its mission. To the extent possible additional procedures will be established to ~uide negotiations and monitor projects. STATEMENT: CITY COUNCIL REQUIRE A DETAILED ANALYSIS FROM THE AGENCY ON WHY IT IS ANNEXING A NEW AREA WITHOUT FIRST REFOCUSING REDEVELOPMENT EFFORTS ON THE CORE AREA. RESPONSE: The Central District Development Agency has taken no formal action to expand its boundaries. The procedures required for any expansion or for the creation of new project areas are detailed in Chapter ~ "Redevelopment Procedures and Activities,, of the California Health and Safety Code. The CDDA will fully comply with.those requirements should a formal decision be made to actually commence a project area expansion. W:M.JW218B -3- STATEMENT: AT LEAST ONE SENIOR MEMBER OF THE AGENCY BE 100 PERCENT ALLOCATED AND DEDICATED TO THE AGENCY AND BE ASSIGNED KEY RESPONSIBILITIES FOR PROJECT MANAGEMENT AND COMPLIANCE. RESPONSE: As pointed out by the Grand Jury's audit firm, two staff members (a Principal Planner and a Development Associate) do work exclusively within the project area boundaries. In addition forty percent of the Economic Development Director (who serves as the Deputy Executive Director to the CDDA) position ~nvolves ~ Di~c^~^~ f"~ ...... +~ F~ to d am Assist~ City ~**~-~,, ............. ~. administering the daily operations of the Agency. This position receives support from the City's ~inance Director (who serves, as the Finance Officer to the CDDA) and an Assistant City Attorney. This team reports directly to the Agency's Executive Director. Due to current level of activity it would be impractical to require the Deputy Executive Director to ~-e~--~is ^~ ~u~ allocate all of his time to CDDA ............ ~_The team, as ~ described above, offers expertise in finance, law and project administration. As pointed ~"~ ~ ~ ~ Jury's ~"~t ~;~- two ( Pri ipal -4- W:M. JW218C STATEMENT: THE AGENCY DEVELOP A DETAILED ANNUAL WORK PROGRAM WHICH OUTLINES ATTAINABLE AND MEASURABLE STEPS'TO MAKE THE AGENCY A VIABLE ECONOMIC ENTITY. · RESPONSE: ] The budget for F scal Year 1990-91 adopted by the CDDA on June 8, 1990 nd approved by the City Council on June 27, 1990, does provide performance measurements which are to be carried out during this upcoming year. Recognizing the value of a d tailed annual work program the Executive Director has caused such a document to be created. The work plan will be utilized monitored throughout the year to m~%e~ assur~ progress towards reaching %he perfor- mance measures stated in the adopted budget. STATEMENT: THE GRAND JURY R~COMMENDS THAT THE CITY MANAGER OUTLINE PROCEDURES. SPEQIFIC GUARANTEES SHOULD BE ESTABLISHED, DOCUMENTED AND WRITTEN INTO PROJECT CONTRACTS. A FORMAt, SIGN-OFF OF APPROVALS SHOULD BE IMPLEMENTED BEFORE ANY CONTRACTS ARE SUBMITTED TO THE AGENCY FOR APPROVAL. THE EXECUTIVE DIRECTO!R~ ECONOMIC DEVELOPMENT DIRECTOR~ CITY ATTORNEY AND FINANCE DIRECTOR SHOULD FORMALLY SIGN OFF ! AND BE REQUIRED T~ DOCUMENT ALL OBJECTIONf~ TOGETHER WITH RECOMMENDATIONS. -5- W:M. JW218D RESPONSE: Redevelopment iz a tool that was specifically designed by the State Legislature to be flexible. Each individual project whether it is being considered by the CDDA or any other Redevelopment Agency in the State of California is unique. This means that each project carries with it its own particular needs. Thus establishing specific guarantees that are all encompassing may not prove to be practical. To · ~ ....... When possible guarantees will be incorporated into any new development agreements. An.example of such an item: ~s that Lf~ the CDDA has included in its financial calculations the tax increment generated from a proposed project, a clause will be included in all future contracts that the developer may not lease or sell to a public agency during a specified period of time. This will protect the CDDA from the potential loss of the projected tax increment. The formal sign off recommended by the Grand Jury is already in place All ~emme~dlng appro-~als of agreements must be signed by the Executive Director, his TM .... ~~ the Finance Director and the City Attorney.~-~ STATEMENT: THE CITY COUNCIL ESTABLISH SPECIFIC GOALS FOR THE AGENCY~ IN TIMELY FASHION. IF THE GOALS ARE NOT MET~ THE AGENCY'S CONTINUED EXISTENCE SHOULD BE EVALUATED. THE OBJECTIVES OF PROVIDING AVAILABILITY OF LOW INCOME HOUSING SHOULD BE RE-EVALUATED~ AND A FORMAL ANALYSIS AND PUBLIC REPORT BE ISSUED BY THE CITY COUNCIL REGARDING ITS POSITION FOR THE AGENCY. -6- W:M.JW218E RESPONSE: As long as a debt obligation exfsts it is necessary that a redevelopment agency exist in some form. A legal entity must be in place to receive the tax increment being generated, adopt a budget and approve the debt service obligations. It is agreed that the agency's goals and objective and its success in meeting them should be evaluated. In regards to low and moderate income housing the CDDA has expressed its interest in generating additional housing. The CDDA also has recognized its limitations and believes its first priority is to stabilize its fiscal situation before incurring additional debt as a result of encouraging low and moderate income housing. STATEMENT: THE GRAND JURY RECOMMENDS THAT THE CITY COUNCIL ASSESS THE VALIDITY OF THE AGENCY'S POSITION OF THE 20 PERCENT SET-ASIDE RULE. THE CITY COUNCIL SHOULD EVALUATE THE ACTUAL HOUSING NEEDS OF THE CITY OF BAKERSFIELD IN DETERMINING WHETHER SUBSTANTIAL EFFORT IS BEING MADE TO MEET THE LOW AND MODERATE INCOME HOUSTNG REQUIREMENTS. THEY SHOULD ANALYZE AND REPORT ON WHETHER COMMUNITY DEVELOPMENT BLOCK GRANT MONIES TRULY MEET THE TEST OF "DISCRETIONARY,, FUNDS PAID DIRECTLY TO THE COMMUNITY. COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS MAY NOT BE CONSIDERED DISCRETIONARY BECAUSE THE USE OF THESE FUNDS IS DETERMINED WHEN THE CITY APPLIES FOR THEM. W:M.JW218F -7- RESPONSE: t%"'is ..... car as to ~t~a~~a-n~-Jury ~s a~e~a~--~o ~ .... t .... e--~e~F--~e, cent houslng set-aside. The Agency has complied fully with Section 33334.2 of the Health and Safety Code. To quote from this section: "In addition .to any other local funds, these direct financial contributions may include federal or state grants paid directly to a community and which a community has the discretion of using for the purposes'for which moneys in the low and moderate income h~sing fund may be used". (As required by Section 33334.2a copy of the equivalent efforts has been forwarded to the State of'California for their review). The CDDA has, for the past several years, made a finding that the housing rehabilitation programs funded by the City. of Bakersfield through the use of Community Development Block Grant (HUD) exceeds the equivalent effort requirement of Section 3334.2 STATEMENT: THE CITY COUNCIL REVIEW THE ACTIONS BEING CONTEMPLATED BY THE AGENCY. THEY SHOULD PRE-APPROVE SETTLEMENT PARAMETERS FOR THE AGENCY. IN THIS CONNECTION~ EVERY EFFORT SHOULD BE MADE TO PURSUE THE. INCREMENTAL TAX STREAM WHICH WILL BE DERIVED FROM A SUCCESSFULLY COMPLETED PROJECT. HOWEVER~ PARAMETERS NEED TO BE ESTABL'ISHED TO PREVENT'THE AGENCY FROM MAKING AN ARBITRARY SETTLEMENT. W:M.JW218G RESPONSE: ........... Yaguc ~ .... ~^~ to t½ she~f-~-~ee~ ~he p~oeedu~e fo~ the settlement of any litigation by the CDDA mi~o~s these p~oeedu~es followed by the City of Bakersfield. Settlement offers a~e initiated oP accepted bY the City Atto~ney,s Office, wo~kin~ in conjunction with the City ManaEeP and the affected city depaPtment. This team consults with the enti~e City Council in closed sessions. Direction and parameters of future negotiations a~e then ~iven to the staff by the City Counoil. Approval of any final settlement is based on a detailed p~esentation' to the City Council by the staff members directly involved. The ~eeent settlement of the liens and claims involvin~ the Convention cente~ Hotel ~equi~ed extensive discussion with (and app~ovat by) both the City Council and the CDDA. STATEMENT: THE AGENCY ONLY PURCHASE LAND FOR SPECIFIC PROJECTS OR AS PART OF.A SPECIFIC PROJECT AREA WORKPLAN FOR THE DISTRICT'S REDEVELOPMENT. LAND WHICH WAS PREVIOUSLY ACQUIRED AND FOR WHICH THERE IS NOT A CURRENT PROJECT SHOULD BE RELEASED PUBLICLY FOR SALE TO PRIVATE PARTIES· LAND HOLDINGS WOULD BE LIQUIDATED TO ASSIST IN ESTABLISHING FINANCIAL VIABILITY OF THE AGENCY OR TO REDUCE DEBT· W:M.JW218H -9- RESPONSE: ......... ~ .... wzshos to~o ~,~ _The practice of land-banking has long since been abandoned. The CDDA concurs with the Grand Jury that property should be acquired only as part of a specific project ~^ ~A ~ .... ~^ ~,,~^ ~ ~ ~~~ ~fforts are currently being exerted to identify private projects which would encompass two of the parcels owned by the CDDA. The land holdings will be disposed of should a project be identified which would contribute to the revitalization of the project area. STATEMENT: THE GRAND JURY RECOMMENDS THE BOARD OF SUPERVISORS WATCH CLOSELY THE GROWTH OF REDEVELOPMENT IN KERN cOUNTY BECAUSE OF THE IMPACT IT HAS ON THE TAX STRUCTURE OF THE ENTIRE COUNTY. IT IS INCUMBENT ON THE SUPERVISORS OF KERN COUNTY TO MONITOR ALL REDEVELOPMENT AGENCIES WITH A ViEW TOWARD ADVOCATING AND SUPPORTING STATEWIDE LEGISLATION. RESPONSE: Since the statement was addressed to the Board Of Supervisors, there is no need for the City of Bakersfield to respond. STATEMENT: IN VIEW OF THE LACK OF DOCUMENTS THAT WERE EITHER MISSING OR BURIED IN BACK FILES AND COULD NOT BE MADE AVAILABLE TO EITHER THE GRAND JURY OR TO THE AUDITING FIRM, AND SINCE NEARLY EVERY INCORPORATED CITY IN KERN COUNTY HAS -10- W:M.JW218I ENTERED INTO SOME TYPE OF REDEVELOPMENT WHICH AFFECTS BOTH THE CITIES AND THE COUNTY TAX BASE~ THE GRAND JURY RECOMMENDS THAT THE COUNTY~ IN CONJUNCTION WITH EACH CITY DUE TO THE AMOUNTS OF FUNDS INVOLVED~ CAUSE A FINANCIAL AUDIT TO BE CONDUCTED EACH AND EVERY YEAR~ AND THE RESULTS OF THOSE AUDITS TO BE REVIEWED AND PUBLISHED BY THE BOARD OF SUPERVISORS. RESPONSE: Although this item was also directed to the Board of Supervisors, the CDDA~ishes to advise ~ ......... d Jur~ that an audit is already performed on an annual basis . Copies of this audit are available upon request. It should be noted that the Deputy Executive Director informed the Grand Jury .......... ~ ........ opmcnt) .... ~^ ............ e that the documents requested were available and issued an invitation to have the audit firm review them. mb W:M.JW218J -11- EXISTING 17.60.030 "Outdoor advertising sign" means a sign that is #2? rented or leased for limited durations (maximum 4. d. Where such parcel is permitted two or PLANNING COMMISSION thirty-six months), has temporary or changeable more freestanding signs, the distance RECOMMENDATION copy, and is not to be used as permanent off- between any of such signs shall be not premises identification sign for a business or less than fifty feet, no~ less than activity, and directs attention to a business, twenty-five feet from a~ adjoining inte- Prohibit new outdoor advertising signs. Existing signs remain as profession, product, commodity or service that is riot lot line. ' nonconforming. not the primary business, profession, product, com- modity or service conducted, sold, manufactured or 17.60.170 '~r~i'tted in M~I offered on the site on which the sign is located: such sign may also be referred to as a billboard. A. The following signs are permitted in M-1 and M-2 URBAN DEVELOPMENT COMMITTEE districts: RECOMMENDATION 17.60.080 Specific Prohibitions. The following signs, in addition to other signs prohibited in this chapter, 2. Outdoor advertising signs not exceeding three are specifically prohibited: hundred square feet in area, excluding cut- outs or extensions not exceeding thirty Amend the existing ordinance to: G. Outdoor advert%sing ,signs except as permitted square feet in area, and not exceeding fifty in the C-2, M-1 and M-2 districts~ feet in height, except that: 1. Increase the distance between outdoor advertising signs to .. 1,000 feet in all directions. N. Notwithstanding any provision to the contrary a. Such signs shall be at least three hun- contained in this chapter, no freestanding dred feet apart on the same side of a 2. Prohibit outdoor advertising signs within 1,000 feet of res- sign (other than monument signs and direc- public street within the same block, idential zones. tional signs, as defined in Section - 17.60.030) and no outdoor advertising signs b. Such signs shall not project over public 3. In addition to Truxtun Avenue, prohibit outdoor advertising shall be permitted on property within the property or any public right-of-way, signs along or within 1,000 feet of: area described and circumscribed as follows: c. Where such sign has two faces back-to- a. Highway 178 east of Oswell Street [Legal description of area along Truxtun Avenue back which faces are at no point more from Highway 99 to Coffee Road.] than two feet apart, the two faces of the b. Alfred Harrell Highway , sign shall be substantially equal in 17.60.160 Permitted in C-2 district, area; c. Stockdale Highway west of New Stine Road A. The following signs are permitted in the C-2 4. a. Two freestanding identification signs, d. Panorama Drive district= not exceeding three hundred square feet in area in aggregate, for each street 4. Prohibit outdoor advertising signs over or on buildings. 2. Outdoor advertising signs not exceeding three frontage of a developed parcel of prop- hundred square feet in area, excluding cut- erty and which do not project over public 5. Clarify the applicability of separations and setbacks by outs or extensions not exceeding thirty-five property or any public right-of-way, and restating them in the section addressing outdoor advertising feet in height, except that: are located a minimu~ of twenty-five feet signs. from an adjoining interior s~de lot line. a. Such signs shall be at least three hun- dred feet apart on the same side of a c. The distance between any of such signs p/oas public street, shall be not less than fifty feet. b. Such signs shall not project over public property or any public right-of-way, c. Where such sign has two faces back-to- back which faces are at no point more than two feet apart, the ~two faces of the signs shall be substantially equal in area;...