HomeMy WebLinkAboutRES NO 035-09RESOLUTION NO. 0 3 5 -' ~ 9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BAKERSFIELD AUTHORIZING THE EXPENDITURE
OF BAKERSFIELD REDEVELOPMENT AG€NCY FUNDS
FOR CONSTRUCTION OF THOSE CERTAIN PUBLIC
IMPROVEMENTS SPECIFIED IN THE SERIES "A" AND
SERIES "B" 2009 TAX ALLOCATION BONDS AND
MAKING CERTAIN DETERMINATIONS IN CONNECTION
THEREWITH
WHEREAS, the Bakersfield Redevelopment Agency ("Agency") is a public body,
corporate and politic, organized and existing under the California Community
Redevelopment Law (Health & Safety Code § 33000, et seq.) ("CRL"); and
WHEREAS, by previous action, the Agency and the City Council of the City of
Bakersfield, California (the "City Council" or "City", as appropriate) have established the
Redevelopment Plans for the "Old Town Kern-Pioneer Project" and the "Southeast
Bakersfield Redevelopment Project" (collectively the "Project Areas") each of which has
its approved redevelopment plan (the "Redevelopment Plans"); and
WHEREAS, the Agency intends to provide funding from the proceeds of the
Series "A" and Series "B" 2009 Tax Allocation Bonds for construction of certain public
improvements including a sewer lift station and, wet and dry utilities to service new
development on 18th and 19th Streets, and additional land acquisitions and
improvements to the Mill Creek Linear Park (the "Improvements"); and
WHEREAS, the Agency, together with the City Council of the City has
considered the evidence necessary to make the public benefit findings required by
Health and Safety Code Section 33445.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BAKERSFIELD AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. Based on the foregoing recitations and all evidence presented to
and considered by the City Council, and in accordance with Health and Safety Code
Section 33445 and the Redevelopment Plan, the City Council hereby determines:
a. The public improvements contemplated to be funded from proceeds
of the Series "A" and Series "B" 2009 Tax Allocation Bonds will be of
benefit to the Project Areas.
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The proposed Improvements consist of the construction of a sewer lift
station and provision of wet and dry utilities for 18th and 19th Streets and
various expansions of the Mill Creek Linear Park improvements. These
Improvements will encourage private redevelopment activities along the
two street corridors and along the entire Mill Creek Linear Park Area. This
will in turn revitalize the area, enhance the general safety and welfare of
the community thereby increasing employment opportunities, housing
activities and eliminating blighting conditions. Property owners will have
additional incentives to rehabilitate, revitalize and beautify older properties
or construct new facilities within these areas.
The Redevelopment Plans contemplate that these improvements benefit
the Project Areas. More specifically, the Redevelopment Plans include
among their purposes the elimination of blight in the project areas by
providing for the installation and construction of public improvements and
the cooperation with public bodies as may be appropriate or necessary in
the interest of the general welfare. (See Sections 343 and 344 of the
Redevelopment Plans.)
The Redevelopment Plans provide that the Agency's goal is to eliminate
and prevent the spread of blight, in part, by installation, construction, or
reconstruction of streets, utilities, and other public improvements.
Permitted improvements include but are not limited to water
improvements, sewer improvements, street/highway improvements, traffic
signals, electrical distribution systems, parks and related facilities (See
Sections 343 and 344). The Improvements are exactly those
contemplated to benefit the Project Areas by eliminating the existing
blighting conditions and providing public facilities consistent with the
Redevelopment Plan.
b. No other reasonable means to fund the Improvements are available,
The Agency expects to finance the Improvements by the payment of
principal of and interest on the Series "A" and Series "B" 2009 Tax
Allocation Bonds. Series "A" is to be secured by tax increment pledged by
the Old Town Kern Pioneer Project and Series "B" is to be secured by the
tax increment of the Southeast Bakersfield Redevelopment Project.
The estimated cost of the acquisition, installation or construction of the
Improvements is approximately Three Million Four Hundred Thousand
Dollars, for the Mill Creek Linear Park improvements and the sewer and
utility improvements to 18th and 19th Streets, from proceeds of the Series
"A" Bonds and One Million Seven Hundred Fifty Thousand Dollars, for the
Mill Creek Linear Park Improvements, from proceeds of the Series "B"
Bonds.
The Agency has the legal authority and flexibility to implement the
revitalization of the Project Area utilizing any or all of the following revenue
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sources: 1) City, 2) State, 3) Federal government, 4) tax increment, 5) new
tax allocation bonds, 6) interest income, 7) loans from private financial
institutions, 8) lease or sale of Agency-owned property, 9) donations, 10)
developer payments, and 11) any other legally available public or private
source of funds.
The City currently lacks adequate resources to fund the Improvement and
the remaining needs of the City. The City's General Fund is the primary
financial source for operating the City. The City has been impacted by the
reduction of sales tax revenues as the economic slowdown continues.
Development related revenues have also decreased as a result of
reduced development activity, including reductions in applications for
permits for new housing. Given the stresses on the existing budget, the
City would not be able to fund the Improvements. The City has reserve
funds, however, many of these funds are restricted by Federal, state and
local guidelines.
It is also highly likely that neither Federal, nor state funds will be found in
sufficient amount to construct the Improvement. The City continues to
apply for grants and has received funding or loans for different portions of
the Mill Creek Linear Park Project, however, the proposed Improvements
are unlikely in the current economic environment to receive any financial
assistance from other sources.
It anticipated that the State's current fiscal deficit (estimated at $17 billion)
will result in the loss of City funds. The State's structural deficits are
ongoing and not expected to improve dramatically for the remainder of the
decade. As a result of the current financial situation of Federal, state and
local governments, the Agency is the last resort to provide stable funding
for the Improvement. This will allow the City to preserve existing funding
levels for other City services. There is no other identified method for
financing the Improvement other than by utilization of tax increment
described above.
c. The expenditure of Agency funds for the Improvements will assist in
the elimination of the blighting conditions in the Project Area and is
consistent with the Agency's adopted Implementation Plans adopted
March 14, 2005, for the Project Areas.
The use of Tax Increment for the Improvements will assist in the
elimination of one or more blighting conditions inside the project areas and
is consistent with the Agency's current Five-Year Implementation Plans
2005-09 dated March 14, 2005 pursuant to Section 33490 of the
Redevelopment Law (the "Implementation Plan"). As described in
Subsection 1 above, payment of funds for the Improvements is
contemplated under the Redevelopment Plan to assist with the elimination
of blight within and without the project area. The Improvements are
contemplated capital improvements in the Implementation Plans to assist
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and enhance Agency-assisted developments and the Project Area in
general.
Improving flood control, enhancing the commercial and residential
potential for the Project Areas, and increasing recreational opportunities
for the community is an improvement goal identified in the Implementation
Plans as a means of eliminating blight.
The issuance of the Series "A" and Series "B" 2009 Bonds to fund, the
Improvements will spur other development and redevelopment. In
accordance with the Implementation Plan, the Agency intends to eliminate
the following blighted conditions within the project area:
dilapidated/deteriorated structures, substandard streets, inadequate water,
sewer and storm drainage systems. Construction of the needed
Improvements will assist the Agency to accomplish these goals through
the new sewer and utility function as well as the improvement flood control
and encouraging public use of the previously blighted canal structure area.
In turn these Improvements will help promote the desirability of the
community as a place to live. Providing the public park use will also
reduce crime, encourage development and redevelopment, leading to an
increase in the potential for new businesses and the expansion of existing
businesses, thereby enabling the City to become increasingly
economically independent.
Pursuant to the Redevelopment Plans, the Agency intends to implement
its goals by the financing of public infrastructure that supports
redevelopment efforts in the Project Area.
SECTION 3. The City consents to the use of Agency funds including the Series
"A" and the Series "B" 2009 bond proceeds for the costs of the Improvements.
SECTION 4. The Mayor, City Manager and Treasurer of the City are hereby
authorized to take all action necessary to effectuate the transactions described in this
Resolution, including but not limited to transferring moneys to the City to be used as
described herein to pay for a portion or all of the costs of the Improvement Projects.
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PASSED, APPROVED, AND ADOPTED at a regu
of the City of Bakersfield, California, this ~_ Day o~~
ATTEST:
~SS~ . CITY CLERK
~,PPi3~VED as to form:
City Attorney
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the City Council
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AYES' COUNClLMEMBER CAR~N, BENHAM, WEIR, 66El6H, HANSON, SULLIVAN, SCRIVNER
S: COUNCILMEMBER h.,6-rL~_
Ii8S7AiN: G4UNCiLMEMBER V1,~x-2-
JIfaSENT: COUl1ECILMEF4SER r ~ ~ ts.l..
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