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HomeMy WebLinkAbout2004-01-21 e-packetSPECIAL JOINT MEETING REDEVELOPMENT AGENCY AND CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meed~g to be held at: CITY HALL CONFERENCE ROOM 400 GRAND AVENUE JANUARY 21, 2004 6:00 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the Redevelopment Agency and City Council of the City of South San Francisco will hold a Special Joint Meeting on Wednesday, the 21st day of January, 2004, at 6:00 p.m., in the City Hall Conference Room, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: 1. Call to Order Roll Call Public Comments - comments are limited to items on the Special Meeting Agenda 4. Study Session: o a. Review and discussion of proposed redevelopment plan amendment to add territory and fiscally merge redevelopment project areas b. Review and discussion of proposed capital improvement project for Oak Avenue Extension Closed Session: Pursuant to Government Code Section 54956.9(a), existing litigation, City of South San Francisco v. WofldCom Adjournment City Clerk Redevelopment Agency Study Session January 21, 2004 Proposed Plan Amendment and Fiscal Merger Recommendations Extend time limit for project activities and tax increment receipt by one year in all four Projects. Fiscally merge Gateway, Shearwater, and Downtown Projects. Combine Tax increment caps in Gateway, Shearwater, and Downtown Projects into one combined cap for all three Projects. Also, combine caps on outstanding bonded indebtedness in the three Projects into one combined cap for all three projects. Add Oyster Point Marina area to Downtown Project Area. Consider adding to Downtown Project Area other areas that exhibit blighting conditions. Consider the possibility of reinstating or extending eminent domain authority on non-residential property. Agency Actions to Date Designated Oyster Point Marina area as a Survey Area. Performed strategic evaluation of Redevelopment Projects. Reviewed time and fiscal limits in Redevelopment Plans. Conducted feasibility study of potential amendments to, and merger of, redevelopment plans. Provided initial assessment of remaining blight in Project Areas. Reviewed existing contractual pass through agreements (in process). Overview of Redevelopment Projects Time Limits Fiscal Limits Tax Increment Collected Pass Through Obligations Summary Project Area Time and Fiscal Limits Gateway Shearwater Downtown El Camino Original 176.2 174.5 550 175 6/17/81 1/8/86 7/12/89 7/14/93 1/1/04 1/8/06 7/12/09 7/14/13 6/17/21 1/8/26 7/12/29 7/14/33 6/17/31 1/8/36 7/12/39 7/14/43 $80,000,000 $168,000,000 $248,000,000 $300,000,000 $40,000,000 $52,650,000 $90,000,000 $50,000,000 $44,667,001 $8,253,772 $40,850,303 $6,794,333 $35,332,999 $159,746,228 $207,149,697 $293,205,667 Acres Adoped Time Limit for Incurring Debt* Time Limit for Project Activities** Time Limit for Tax Increment Receipt** Fiscal Limit for Tax Increment Collection*** Bond Limit*** Total TI Collected Thru 2003/04 (Projected) Total TI Remaining to Collect Contractual Pass Thru Obligations (pre-1994) Statutory Pass Thru Payments 1994 and later) None County County County SSF USD SSF USD SSF USD Comm. College Comm. College Comm. College ~o~S~upt. Schools Supt. Schools None None None None All Entities Added Area 79.6 6/14/00 6/13/20 6/13/30 6/13/45 None *Agency could delete the deadline for incurring debt in plans adopted prior to 1/1/94 with the adoption of an ordinance authorized by SB 211. Recommend removal of deadline for Gateway and Shearwater. ** Agency could extend the time limit by one year with the adoption of an ordinance authorized by SB 1045. All Redevelopment Projects are eligible. Recommend extension for all four Redevelopment Projects. *** Recommend major plan amendments to merge the tax increment caps into one combined cap and the bonded indebtedness caps into one combined cap for Gateway, Shearwater and Downtown. Affected Taxing Entities Affected taxing entities are all of the entities that levy taxes in the Project Areas: - City of South San Francisco - San Mateo County -SSF Unified School District - San Mateo Community College District - San Mateo Superintendent of Schools - Bay Area Quality Management - San Mateo County Harbor -Colma Creek Flood Control Pass Through Payments Prior to 1/1/94, agencies could negotiate contractual pass through payments with affected taxing entities. Four of the affected taxing entities have contractual pass through payment agreements with the Agency. Three Redevelopment Projects have contractual agreements. · Redevelopment law prohibits the renegotiation of existing contractual pass through agreements or the establishment of new negotiated contractual agreements. As of 1/1/04, each taxing entity that derives property tax revenue from within a project area receives an annual payment from the Agency. The formula to determine the pass through payment is set forth in the CRL for both new plans and plan amendments. Recommendations: Remove Debt Incurrence Deadlines Recommend removal of deadline for incurring debt in the Gateway and Shearwater Redevelopment Plans. The Gateway 1/1/04 deadline has passed and the Shearwater deadline is 1/8/06. SB 211 authorized the removal of debt incurrence deadlines by simple adoption of an ordinance. Plans adopted prior to 1994 are eligible. Benefit: Repeal may be necessary to achieve City's redevelopment goals and continue revitalization efforts. If ordinance were not adopted, Agency would no longer be able to enter into additional loans, advances or indebtedness secured by tax increment. Repeal may yield additional funds to the Agency over time. Statutory Pass Throughs: Agency required to pay statutory pass through payments to all affected taxing entities that do not currently have contractual fiscal agreements. All eight entities in Gateway and five of the eight entities in Shearwater would receive statutory pass through payments. Payments would begin in FY 2004/05 in Gateway and FY 2006/07 in Shearwater. Recommend ati on s.' Extend Redevelopment Plan Activity and Tax Increment Collection Time Limit by One Year Recommend extension for all four Redevelopment Projects SB 1045 authorized a one-year extension of Redevelopment Projects that were required to allocate tax increment revenue to ERAF in FY 2003/04. Revenue was allocated from all four Project Areas to ERAF. All Projects are eligible. Extension can be implemented by simple adoption of an ordinance. Benefit: Allows Agency to make up revenue lost by state mandated shift of redevelopment funds. Statutory Pass Throughs: Extension does not trigger statutory pass through payments. Recommendations'. Fiscally Merge and Amend Gateway, Shearwater, and Downtown Projects Recommend fiscal merger of the three Project Areas located in the eastern portion of the City: Gateway, Shearwater and Downtown Projects. The merger would allow funds generated in one Project Area to be used in other Project Areas. (Not recommending that El Camino be merged at this time, but possibly pursued at a future time.) The three Project Areas are mostly contiguous and are approached as a unified planning area. The areas contain a major transportation corridor and are predominantly non-residential. The focus of these three areas is revitalization and economic development. Benefit: The fiscal merger provides flexibility to combine revenues and accelerate investment in Project Areas that have fewer resources. Statutory Pass Throughs: Merger would not trigger pass through payments. Re commendation' Fiscally Merge and Amend Gateway, Shearwater, and Downtown Projects Recommend combining tax increment caps into one combined tax increment cap and outstanding bonded indebtedness caps into one combined cap for bonded indebtedness. Benefit: Allow more flexibility with financing Areas and obtaining better yields. and issuing debt in Project Statutory Pass Throughs: Combining the caps could trigger statutory pass through payments to taxing entities that do not have contractual agreements. (However, pass through payments would have already been triggered if the ordinances to remove the debt incurrence deadlines were to be adopted). Recommendation: Add Oyster Point Marina to the Downtown Redevelopment Project Recommend amending the Downtown Redevelopment Plan to include the Oyster Point Marina area as a redevelopment area. Benefits: Alleviate blight in the area by remediating area to safe environmental standards. Clean up landfill pursuant to closure plan mandated by state order. Provide resources to revitalize and develop the area. Intensify recreational uses to make it a destination. Statutory Pass Throughs: Statutory pass through payments would be made to all taxing entities. The taxing entities would receive a portion of the property taxes that would be generated from redeveloping the area. Without redevelopment resources, it is unlikely this area would be developed, and property taxes would be generated. Conclusion: Initial Assessment of Remaining Blight An initial field survey of existing Project Areas has been conducted. Initial assessment indicates sufficient blight likely remains in the Gateway, Shearwater and Downtown Project Areas in order to proceed with a fiscal merger and to combine the caps on tax increment and bonded indebtedness. Initial assessment indicates blighting conditions in the Oyster Point Marina area are likely sufficient to qualify for redevelopment. Status'. Review Existing Contractual Agreements Seifel Consulting is working with City staff to review existing agreements. Most agreements were executed in the 1980s and some of them are quite complex. RecommendaUon: Extend time limit for project activities and tax increment receipt by one year in all four Projects. Fiscally merge Gateway, Shearwater, and Downtown Projects. Combine Tax increment caps in Gateway, Shearwater, and Downtown Projects into one combined cap for all three Projects. Also, combine caps on outstanding bonded indebtedness in the three Projects into one combined cap for all three projects. Add Oyster Point Marina area to Downtown Project Area. Consider adding to Downtown Project Area other areas that exhibit blighting conditions. Consider the possibility of reinstating or extending eminent domain authority on non-residential property. Redevelopment Amendment Schedule Winter 2004 Spring 2004 Summer 2004 Fall 2004 Winter 2005 Spring 2005 Briefing of City Council and Planning Commission re: Plan Amendments. City Council adopts ordinances to remove debt incurrence deadlines in Gateway and Shearwater Redevelopment Plans. City Council adopts ordinances extending plan activities and tax increment collection by one year in all four Redevelopment Plans. Feasibility analysis completed. Agency Board authorizes proceeding with formal Plan Amendments. City Council adopts resolution designating Survey Area. Planning Commission approves Amended Preliminary Plans and Added Area boundaries. Agency Board accepts Amended Preliminary Plans. Consultations begin with affected taxing entities. Initial Community Redevelopment Law (CRL) and California Environmental Quality Act (CEQA) notices distributed. Environmental Impact Report (EIR) Notice of Preparation comment period ends. County Auditor-Controller completes FY 2004/05 base year assessed valuation report for Added Area. Distribution of Draft EIR, Preliminary Report and Draft Amended Plans. Hearing on Draft EIR. Draft EIR comment period ends. Staff and consultants complete Final Report to Council on Amended Plans and Final EIR. Final EIR, Amended Plans and Report to Council distributed. Planning Commission makes formal recommendation to City Council/Agency. Community Workshop held. Joint Public Hearing held. City Council/Agency Board make required CRL and CEQA findings. City Council introduces ordinances to adopt Amended Plans. City Council conducts second reading and adopts Amended Plans. File EIR Notice of Determination. Distribution of CRL post-adoption documents. Study Session - January 21, 2004 Agenda Item 4b: Review and discussion of proposed capital improvement project for Oak Avenue Extension A visual presentation will be presented by staff.