HomeMy WebLinkAboutOrd 1354-2005
ORDINANCE NO. 1354-2005
AN ORDINANCE APPROVING AND ADOPTING AN
AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE U.S.
STEEUSHEARWATER REDEVELOPMENT PROJECT AREA TO
FISCALLY MERGE THE U.S. STEEljSHFARWATER
REDEVELOPMENT PROJECT AREA WITH THE
DOWNTOWN/CENTRAL PROJECT AREA, THE EL CAMINO
CORRIDOR REDEVELOPMENT PROJECT AREA, AND THE
GATEWAY 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 U.S.
Steel/Shearwater Redevelopment Project Area ("Project Area") by Ordinance No. 996-86,
adopted on January 8,1986; and
WHEREAS, on November 9, 1994, the City Council adopted Ordinance No. 1151-94 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 1339-2004 eliminating the deadline for incurring debt incurrence in accordance with
SB 211, and by adoption of Ordinance 1337-2004, 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 Gateway 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 projects 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 opportunities; 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 of the 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.
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Introduced at a regular meeting of the City Council of the City of South San Francisco,
held the 11th 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.
ATIEST: ~ td.Ji
Deputy CIty Clerk
As Mayor of the City of South San Francisco, I do hereby approve the foregoing
Ordinance this 25th day of May 2005.
~~~;;t~
\
Mayor
Exhibit A
AMENDMENT TO THE
REDEVELOPMENT PLAN FOR THE SOUTH SAN FRANCISCO
U.S. STEEL PLANT SITE/SHEARWATER REDEVELOPMENT PLAN
TO FISCALLY MERGE PROJECT AREAS
SECTION 1. AMENDMENT OF REDEVELOPMENT PLAN.
The Redevelopment Plan for the South San Francisco U.S. Steel Plant Site, adopted by
Ordinance 996-86 on January 8, 1986 and subsequently amended (as so amended, the "U.S.
SteellShearwater Plan" or the "Plan") is hereby amended as set forth in this amendment (this
"Amendment"), effective as ofthe effective date of the ordinance adopting this Amendment.
SECTION 2. FISCAL MERGER
Part V.F, [~506] is hereby added to the U.S. SteellShearwater Plan to read as follows:
F. [~506] Fiscal Merger
1. Findings. The fiscal merger of the U.S. Steel Plant Site/Shearwater Project
Area ("Shearwater 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 Shearwater 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. 1056-89 (as subsequently
amended, the "Downtown/Central Plan").
b. The project area (the "Gateway Project Area") established and described
in the Redevelopment Plan for the South San Francisco Gateway Redevelopment
Project, adopted by the City Council by Ordinance No. 867-81 (as subsequently
amended, the "Gateway 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 Shearwater Project Area, the Downtown/Central Project Area, the Gateway
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
terri tory.
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 of taxes to the Agency.
SECTION 3. EFFECT OF AMENDMENT
All provisions of the Plan not specifically amended or repealed in this Amendment shall continue
in full force and effect.
SECTION 4. 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 of this 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.