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HomeMy WebLinkAboutOrd 1355-2005 ORDINANCE NO. 1355-2005 AN ORDINANCE APPROVING AND ADOITING AN AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE GATEWAY REDEVELOPMENT PROJECT AREA TO FISCALLY MERGE THE GATEWAY PROJECT AREA WITH THE DOWNTOWN/CENTRAL PROJECT AREA, THE EL CAMINO CORRIDOR REDEVELOPMENT PROjECr AREA, AND THE U.S. STEEUSHEARWATER REDEVELOPMENT PROJECT AREA WHEREAS, the City Council of the City of South San Francisco ("City Council") approved and adopted the Redevelopment Plan ("Redevelopment Plan") for the Gateway Redevelopment Project Area ("Project Area") by Ordinance No. 867-81, adopted on June 17, 1981; and WHEREAS, on November 9, 1994, the City Council adopted Ordinance No. 1149-94 to amend the Redevelopment Plan by amending certain time limitations in accordance with AB 1290; and WHEREAS, the Redevelopment Plan was further amended in March 2004 by adoption of Ordinance 1338-2004 eliminating the deadline for incurring debt incurrence in accordance with SB 211, and by adoption of Ordinance 13 3 7 - 2004, extending certain time limitations in accordance with SB 1045; and WHEREAS, the City Council has received from the Redevelopment Agency of the City of South San Francisco (the "Agency") a proposed amendment to the Redevelopment Plan (the "Amendment"), a copy of which is attached to this Ordinance as Exhibit A; and WHEREAS, the Amendment provides for the fiscal merger of the Project Area with the El Camino Corridor Redevelopment Project Area, the Downtown/Central Redevelopment Project Area and the u.S. Steel/Shearwater Redevelopment Project Area in order to pool tax increment revenue from the four project areas and establish a unified bonded indebtedness limit for the four project areas while retaining the separate identity of each project area for other purposes; and WHEREAS, adoption of the Amendment is necessary to provide the Agency, the City and the South San Francisco community with additional financial and legal resources to expand and complete the redevelopment program in the Project Area through activities such as development of public improvements, revitalization of commercial and industrial areas, land assembly and disposition for redevelopment, provision of financial and other assistance to property owners for redevelopment of their property, and the provision of assistance in the development, preservation, acquisition and rehabilitation of affordable housing; and WHEREAS, as set forth in City Council Resolution 23-2005 and Agency Resolution 04- 2005, each adopted on March 9, 2005, the City Council and the Agency have each determined that establishment of a Project Area Committee is not required because the Amendment does not authorize use of eminent domain for property on which persons reside and does not provide for the development of public projects that will cause displacement of a substantial number of low- and moderate-income households; and WHEREAS, as set forth in City Council Resolution 23-2005 and Agency Resolution 04- 2005, the City Council and the Agency have each determined that (i) the fiscal merger is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), and (ii) the potential environmental effects of the Amendment have been analyzed in previously certified Environmental Impact Reports, and no new proj ects are proposed, no new impacts have been identified, there are no substantial changes in the circumstances under which the prior EIRs were certified, and there is no new information that was unavailable at the time the prior EIRs were certified; and WHEREAS, the City Planning Commission (the "Planning Commission") has reviewed the Amendment, has found that the Amendment conforms to the City's General Plan and has recommended the approval and adoption of the Amendment; and WHEREAS, the City Council and the Agency conducted a joint public hearing on May 27,2005, concerning adoption ofthe Amendment; and WHEREAS, notice of the public hearing was published in a newspaper of general circulation in San Mateo County once per week for four weeks prior to the date of the hearing, and a copy of such notice and affidavit of publication are on file with the City Clerk and Secretary of the Agency; and WHEREAS, notice of the public hearing together with a statement concerning acquisition of property by the Agency was sent by first class mail to the last known address of each assessee of each parcel of land in the Project Area, as shown on the last equalized assessment roll for the County of San Mateo; and WHEREAS, notice of the public hearing was sent by first class mail to all residents and businesses within the Project Area; and WHEREAS, notice of the public hearing was sent by certified mail, return receipt requested to the governing body of each taxing agency that receives taxes from property in the Project Area; and WHEREAS, the Agency has prepared a Report to Council in compliance with the requirements of Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) and a Supplement to such Report, which Report and Supplement are on file with the City Clerk and the Agency Secretary, and are hereby incorporated herein by reference; and WHEREAS, the City Council has evaluated the Agency's Report to Council, the Supplement, and the report and recommendations of the Planning Commission, has provided an opportunity for all persons to be heard, and has received and considered all evidence and testimony for and against the adoption of the Amendment, and the City Council has, by Resolution No. 42-2005, adopted written findings ("Findings") in response to each written objection received from an affected property owner or taxing entity; and WHEREAS, the Agency and the City Council have complied with all requirements of Community Redevelopment Law in connection with the consideration and adoption of the Amendment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: Section 1. Purpose and Intent. The purpose and intent of the City Council with respect to the Amendment are: (i) to fiscally merge the City's four project areas in order to pool tax increment revenue from the four project areas and establish a unified bonded indebtedness limit for the four project areas while retaining the separate identity of each project area for other purposes, and (ii) to accomplish to the greatest extent possible (a) the elimination of blight in the Project Area, and (b) the expansion and completion of the redevelopment program in the Project Area through the development of public improvements, the revitalization of commercial and industrial properties, land assembly and disposition for redevelopment, the provision of financial and other assistance to property owners for redevelopment of their property, the development, preservation, acquisition and rehabilitation of affordable housing, the expansion of employment opportunities, and the promotion of private sector investment in the Project Area. Section 2. Findings and Determinations. In accordance with Health and Safety Code Sections 33354.6(a), 33367 and 33457.1, and based upon the evidence contained in the Report to Council, the Findings and other documents prepared in connection with the Amendment adoption process, and the evidence presented at the public hearing, the City Council hereby finds and determines that: a. The Project Area continues to be characterized by blighting conditions as documented Section II of the Report to Council prepared for the Amendment and in the Report to Council prepared in connection with the original adoption of the Redevelopment Plan. b. The blighted conditions in the Project Area are so prevalent and so substantial that they cause a reduction of or lack of proper utilization of the area to such an extent that they constitute a serious physical and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. This finding is based in part on the facts that governmental action available to the City without redevelopment would be insufficient to cause any significant correction of the blighting conditions, and that the nature and cost of the improvements necessary to eradicate such blight are beyond the capacity of the City and private enterprise acting alone or in concert without redevelopment. c. The Amendment will facilitate the redevelopment of the Project Area in conformity with the Community Redevelopment Law and in the interests of the public peace, health, safety and welfare. This finding is supported by the fact that redevelopment of the Project Area as contemplated by the Redevelopment Plan as amended by the Amendment will implement the objectives of the Community Redevelopment Law by aiding in the elimination and correction of the conditions of blight in the Project Area; providing for planning, development, redesign, clearance, reconstruction or rehabilitation of properties which need improvement; providing affordable housing, including housing for low- and moderate-income persons; providing additional employment opportumtIes; facilitating private investment; and providing for more beneficial use of under-utilized land. d. The adoption and carrying out of the Amendment is economically sound and feasible. This finding is based in part on the fact that under the Redevelopment Plan, as proposed to be amended, the Agency will be authorized to seek and utilize a variety of potential financing resources, including tax increments and that no public redevelopment activity will be undertaken unless the Agency can demonstrate that it has adequate revenue to finance the activity. The Report to Council further documents the economic feasibility of the Amendment and related undertakings. e. The Amendment is consistent with the General Plan of the City including, without limitation the Housing Element of the General Plan, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This finding is based upon the report of the Planning Commission that the Amendment conforms to the General Plan of the City of South San Francisco. f The carrying out of the Amendment will promote the public peace, health, safety and welfare of the City and will effectuate the purposes and policies of the Community Redevelopment Law. This finding is based on the fact that redevelopment as contemplated by the Redevelopment Plan, as amended by the Amendment, will benefit the Project Area by correcting conditions of blight and by coordinating public and private actions to stimulate development, contribute toward needed public improvements and improve the social, economic, and physical conditions ofthe Project Area. g. The Agency has a feasible method and plan for the relocation of families and persons who may be temporarily or permanently displaced from housing facilities in the Project Area. This finding is based upon the fact that the City Council and the Agency recognize that the provisions of Government Code Section 7260 et seq. would apply in the event of relocation resulting from the Agency's implementation of the Redevelopment Plan as amended by the Amendment. The City Council finds and determines that the provision of relocation assistance according to the Agency's adopted Relocation Guidelines and applicable law constitutes a feasible relocation method. h. There are, or will be provided within the Project Area or in other areas not generally less desirable with regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families and persons who may be displaced from the Project Area, decent, safe, and sanitary dwellings equal in number to the number of and available to such displaced families and persons and reasonably accessible to their places of employment. This finding is based in part on the fact that no person or family will be required by the Agency to move from any dwelling unit in the Project Area until suitable replacement housing is available according to law. 1. Families and persons shall not be displaced prior to adoption of a relocation plan pursuant to Health and Safety Code Section 33411 and 33411.1. Dwelling units housing persons and families of low or moderate income shall not be removed or destroyed prior to the adoption of a replacement housing plan pursuant to Health and Safety Code Sections 33334.5, 33413 and 33413.5. This finding is based in part on the fact that the Agency shall displace no families or persons nor remove or destroy dwelling units housing persons and families of low or moderate incomes unless and until relocation assistance as required by law is provided. J. The elimination of blight and the redevelopment of the Project Area could not be reasonably expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency. This finding is based upon the existence of blighting influences, including the lack of adequate public improvements and facilities, structural deficiencies, dilapidation and deterioration, factors that hinder economically viable use, and the inability of individual developers to economically remove these blighting influences without public assistance to acquire and assemble sites for development as detailed in the record including the Report to Council. The lack of private investment incentive, and the cost of requiring individuals (through assessments or otherwise) to eradicate or significantly alleviate such blighting conditions, and the inadequacy of other governmental programs and financing mechanisms to eradicate or significantly eliminate such blighting conditions, make elimination of blight in the Project Area infeasible without the aid and assistance of the Agency under the Amendment and the Community Redevelopment Act. k. The time limitations and the limitation on taxes that may be allocated to the Agency as set forth in the Redevelopment Plan as amended by the Amendment are reasonably related to the proposed projects to be implemented in the Project Area and to the ability of the Agency to eliminate blight within the Project Area. This finding is supported by the fact that redevelopment depends in large part, upon private market forces beyond the control of the Agency, and shorter limitations would impair the Agency's ability to be flexible and respond to market conditions as and when appropriate and would impair the Agency's ability to maintain development standards and controls over a period of time sufficient to assure area stabilization. In addition, shorter time limitations would limit the revenue sources and financing capacity necessary to carry out proposed projects in the Project Area. 1. The fiscal merger of the Project Area and the City's three other project areas for the purpose of pooling tax increment revenue is authorized by, consistent with, and will serve the legislative policies of, Health and Safety Code Section 33485 et seq., in that such fiscal merger will result in substantial benefit to the public and will contribute to the revitalization of blighted areas through the increased economic vitality of such areas and through increased and improved housing and economic opportunities in or near such areas. Section 3. The City Council is satisfied that if any occupants of the Project Area are displaced, permanent housing facilities will be available within three years from the time of such displacement, and that pending the development of such facilities, there will be available to any such displaced occupants adequate temporary housing facilities at rents comparable to those in the community at the time of their displacement. Section 4. The City Council is satisfied that all written objections received before or at the noticed public hearing have been responded to in writing In addition, written findings have been adopted in response to each written objection of an affected property owner or taxing entity which has been filed with the City Clerk either before or at the noticed public hearing. Following consideration by the City Council, all written and oral objections to the Amendment are hereby overruled. The reasons for overruling all written objections are more fully set forth in the Findings. Section 5. The Redevelopment Plan as originally adopted and previously amended is hereby further amended as set forth in the proposed Amendment attached hereto as Exhibit A and as so amended is hereby designated as the official redevelopment plan for the Project Area. Section 6. In order to implement and facilitate the effectuation of the Amendment hereby approved, it may be necessary for the City Council to take certain actions, and accordingly, this City Council hereby: (a) pledges its cooperation in helping to carry out the Redevelopment Plan as amended; (b) requests the various officials, departments, boards and agencies of the City having administrative responsibilities in the Project Area likewise to cooperate to such end and to exercise their respective functions and powers in a manner consistent with the redevelopment of the Project Area in accordance with the Redevelopment Plan as amended; (c) stands ready to consider and take appropriate action upon proposals and measures designed to effectuate the Redevelopment Plan as amended; (d) declares its intention to undertake and complete any proceedings necessary to be carried out by the City under the provisions of the Redevelopment Plan as amended; and ( e) may elect to provide, but is not committed to provide, financial assistance in support of implementation of the Redevelopment Plan as amended. Section 7. In accordance with Health and Safety Code Section 33372, the City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency, whereupon the Agency is vested with the responsibility for carrying out the Redevelopment Plan as amended by the Amendment. Section 8. The City Clerk is hereby directed to transmit a certified copy of this Ordinance to the governing body of each of the taxing agencies which levies taxes upon any property in the Project Area. Section 9. If any part of this Ordinance or the Amendment is held to be invalid for any reason, such decision shall not affect the validity of the remaining parts of this Ordinance or of the Amendment, and the City Council hereby declares it would have passed the remainder of this Ordinance or approved the remainder of the Amendment without such invalid part. Section 10. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (i) publish the Summary, and (ii) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (a) publish the summary, and (b) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance. This Ordinance shall become effective thirty (30) days from and after its adoption. * * * * * Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 11 th day of May 2005. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the 25th day of May 2005, by the following vote: AYES: Councilmembers, Richard A. Garbarino, Pedro Gonzalez, and Karyl Matsumoto, and Mayor Pro Tem Joseph A. Fernekes and Mayor Raymond L. Green NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: As Mayor of the City of South San Francisco, I do hereby approve the foregoing _. Ordinance this 25th day of May 2005. ~~~N ::t ~ \ Mayor Exhibit A AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE SOUTH SAN FRANCISCO GA TEW A Y REDEVELOPMENT PROJECT TO FISCALLY MERGE PROJECT AREAS Section 1. Amendment to Redevelopment Plan The Redevelopment Plan for the South San Francisco Gateway Redevelopment Project, adopted by Ordinance 867-81 on June 17, 1981 and subsequently amended (as so amended, the "Gateway Plan" or the "Plan") is hereby amended as set forth in this amendment (this "Amendment"), effective as of the effective date of the ordinance adopting this Amendment. Section 2. Fiscal Merger Part V.D [9504] is hereby added to the Gateway Plan to read as follows: D. [9504] Fiscal Merger 1. Findings. The fiscal merger of the Gateway Redevelopment Project Area ("Gateway Project Area") and the City's three other project areas for the purpose of pooling tax increment revenue is authorized by, consistent with, and will serve the legislative policies of, Health and Safety Code Section 33485 et seq., in that such fiscal merger will result in substantial benefit to the public and will contribute to the revitalization of blighted areas through the increased economic vitality of such areas and through increased and improved housing and economic opportunities in or near such areas. 2. Fiscal Merger of Proiect Areas. Pursuant to, and for the purpose of pooling tax increment revenue as described in Health and Safety Code Section 33485 et seq., the Gateway Project Area is hereby fiscally merged with the following project areas: a. The project area (the "Downtown/Central Project Area") established and described in the Redevelopment Plan for the Downtown/Central Redevelopment Project, adopted by the City Council by Ordinance No.1 056-89 (as subsequently amended, the "Downtown/Central Plan"). b. The project area (the "Shearwater Project Area") established and described in the Redevelopment Plan for the South San Francisco U.S. Steel Plant Site, adopted by the City Council by Ordinance No. 996-86 (as subsequently amended, the "Shearwater Plan"). c. The project area (the "El Camino Project Area") established and described in the Redevelopment Plan for the El Camino Corridor Project, adopted by the City Council by Ordinance No. 1132-93 (as subsequently amended and restated by Ordinance No. 1270-2000, the "El Camino Plan"). The Gateway Project Area, the Downtown/Central Project Area, the Shearwater Project Area and the El Camino Project Area are each referred to herein as a "constituent project area." Except as otherwise stated herein, each reference in this Amendment to a constituent project area shall mean such project area as originally established and as such project area may have been amended to add territory. This section authorizes the taxes attributable to each constituent project area which are allocated to the Agency pursuant to Health and Safety Code Section 33670(b) to be allocated for redevelopment in any of the constituent project areas for the purpose of paying the principal of, and interest on, indebtedness incurred by the Agency to finance or refinance, in whole or in part, the redevelopment project in any of the constituent project areas; except that any such taxes attributable to a particular constituent project area shall first be used to pay indebtedness in compliance with the terms of any bond resolution or other agreement pledging such taxes from that particular constituent project area which resolution or other agreement was adopted or approved by the Agency prior to the fiscal merger of the constituent project areas. Except as otherwise noted in this Section, tax increment revenue attributable to each constituent project area may be used for any lawful purpose in any of the constituent project areas. 3. Bonded Indebtedness Limit. Notwithstanding anything to the contrary set forth in Section 503 of the Plan, in accordance with Health and Safety Code Section 33334.1, the amount of bonded indebtedness to be repaid in whole or in part from the combined allocation of taxes to the Agency pursuant to Health and Safety Code Section 33670 from all of the constituent project areas which in the aggregate can be outstanding at anyone time shall not exceed $232,650,000 in principal amount, except by amendment of this Plan and the redevelopment plans for the other constituent project areas; provided however, the foregoing limitation on outstanding bonded indebtedness shall not apply to the territory added to the Downtown/Central Project Area by amendment to the Downtown/Central Plan adopted concurrently with this Amendment (the "Downtown/Central Added Area") because the Downtown/Central Added Area is subject to a separate limitation on bonded indebtedness. 4. Allocation of Tax Increment. Notwithstanding anything to the contrary set forth in Section 502 of the Plan, the taxes attributable to the constituent project areas that may be and are so allocated to the Agency pursuant to Health and Safety Code Section 33670(b) after the effective date of this Amendment shall not exceed a cumulative total equal to the sum of the individual limits on the allocation of taxes to the Agency as set forth in the redevelopment plans for each constituent project area, except by amendment of this Plan and the redevelopment plans for the other constituent project areas. The foregoing limitation on the allocation of taxes to the Agency shall not apply to the Downtown/Central Added Area because the Downtown/Central Added Area is not subject to a limitation on the allocation oftaxes to the Agency. Section 3. Time Limitations Part VIII of the Plan is hereby amended to add the following: Notwithstanding anything to the contrary set forth herein, the Agency shall not receive taxes allocated to the Agency pursuant to Health and Safety Code Section 33670(b) from the Gateway Project Area after the earlier of (i) June 30, 2020, or (ii) the date upon which the combined tax increment allocation limit for the merged project areas is reached. Section 4. Effect of Amendment All provisions of the Plan not specifically amended or repealed in this Amendment shall continue in full force and effect. Section 5. Severability If any provision of this Amendment or the application thereof to any person or circumstance is held invalid, the remainder of this Amendment, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions ofthis Amendment are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. * * * * * *