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HomeMy WebLinkAboutRES NO RA007-09RESOLUTION NO. ~ ~ ~ 7` ~ 9 A RESOLUTION OF THE GOVERNING BOARD OF THE BAKERSFIELD REDEVELOPMENT AGENCY AUTHORIZING THE EXPENflITURE OF BAKERSFIfLD REDEVELOPMENT AGENCY 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 GOVERNING BOARD OF BAKERSFIELD RECEVELOPMENT AGENCY 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 Agency Board, and in accordance with Health and Safety Code Section 33445 and the Redevelopment Plan, the Governing Board of the Redevelopment Agency hereby determines: 65689v1 ~_.. d~.. _.._....1 I 'SUE^J(:,Y jO~~iC~INAL ~ E 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. 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 67054V1 .___.. _ y CJF~~ICaNI~I 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 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 67054V1 ~_~ _~.,_.._ , ~Gi..~JC'l ~~~IG~t~3AL~ I 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 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 Governing Board of the Redevelopment Agency 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 Chairman, Executive Director and Treasurer of the Agency 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. 67054V1 ~ p. iy__.._ _. ~ ;(~€~."Jt,Y ~;~r.;9i.~i°'v'J1L' i i HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Bakersfield Redevelopment Agency of the City of Bakersfield at a regular meeting thereof held on MAR 3 1 2009 , by the following vote: AY AGENCY MEMBER BENT EL Y, KOMAN MIS E OR ID Z, "rr6ric~, PRI E, TAK~ NOES: AGENCY MEMBER l~~~- ABSTAIN: AGENCY MEMBER {^ -l?1'` ABSENT: AGENCY MEMBER ~~~~- '~ i rat }{- SECRETARY of the Bakersfield Redevelopment Agency APPROVED: :MAR 3 1 20U9 ., J. LI B NT ,CHAIRPERSON AKERSFIELD EDEVELOPMENT AGENCY APPROVED AS TO FORM: VIRGINIA GENNARO GENERAL COUNSEL By: JOSH A . RUDNICK Deput ity Attorney II i~rti~±'~3AL.f, 1 a _._.__ ._._,_. W