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HomeMy WebLinkAboutMinutes 2011-01-14~zx S~ MINUTE S ~o ,.,,,,,._ ~,~ y SPECIAL Ml{;l;'hINCT o CITY COUNCIL c9LIFOR~ti~ AND REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: CITY HALL LARGE CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA 94080 FRIDAY, JANUARY 14, 2011 4:10 P.M. Purpose of the meeting: 1. Call to Order 2. Roll Call. 3. Agenda Review. No changes. TIME: 4:11 p.m. Present: Councilmembers Addiego, Gonzalez and Matsumoto, Vice Mayor Garbarino, Mayor Mullin. Absent: None. 4. Public Comments -comments are limited to items on the ~ipecia~l Meeting Agenda. None. 5. Consideration of Cooperative Agreement Between the Cite of South San Francisco and the South San Francisco Redevelopment Agency Regarding Redevelopment Agency Funding for Specified Public Facilities, Housing, and Infrastructure (a) Adopt an Agency Resolution Making Findings and Authoriizing a Cooperative Agreement Between the City of South San Francisco and the South San Francisco Redevelopment Agency Regarding Redevelopment Agency Funding for Specified Public Facilities, Housing and Infrastructure (b) Adopt a City Resolution Making Findings and Authorizing a Cooperative Agreement between the City of South San Francisco and the South San Francisco Redevelopment Agency Regarding Redevelopment Agency Funding for Specified Public Facilities, Housing and Infrastructure. Redevelopment Agency Director Marty Van Duyn presented the staff report summarizing the Governor's proposal to disband redevelopment agencies (RDA) as of July 1, 2011 and use tax increment to fund state obligations and to redistribute tax increment revenues to other taxing entities including the City. Part of the emergency legislation would prohibit the RDA from entering into new contractual agreements until the Legislature acts on the Governor's proposed legislation. Efforts maybe underway to immediately prohibit RDA from entering into new contracts and obligations. Currently the Agency has approximately $7 million in non-housing bond funds, $34 million in non-housing tax increment funds, ~~2 million in housing bond funds, and almost $10 million in tax increment bond funds. In total, the Agency has $117 million in bond and tax increment funds and in funds payable to the Agency firom prior advances for the parking garage and Oyster Point Flyover projects. If RDA were to cease on July 1, 2011, the first year 2011/201:2 would be subject to an ERAF absorption. By the second year (2012-2013), all tax increment would flow to the taxing entities and not to the state, current obligations would be covered first: before distribution. Unfortunately the latter amounts were not estimated due to time constraints. Current debt obligations equal $5.1 million and the total distributed to all taxing entities (SS~EUSD, Community College District, Harbor District and City General Fund) would be $32.5 mullion. Director Van Duyn noted this was an unprecedented event and felt the best efforts were presented to protect some of the projects public money has already been. spent on. Councilwoman Matsumoto asked how long the debt service would continue for. Finance Director Jim Steele responded it would be approximately another 25 years, until 2036. Councilman Addiego noted did not agree with the consensus of the letter and did not want to oppose the Governor, as he felt the idea was innovative. Although he wanted to save everything in South San Francisco, he still wanted to move in the same direction as the Governor. Councilman Gonzalez asked what percentage of money Director Van Duyn, regarding the letter, stated that it did not have t;o come from the entire Council and was just suggested wording. He noted the Governor's proposal did put in harms way projects that the City really wanted to see happen. It is his opinion that the City's RDA has acted in the true spirit of what Redevelopment was intended for. Vice Mayor Garbarino asked what would happen to mandated housing. City Attorney Steve Mattas stated funds were transferable to the local housing authority and that South San Francisco has a federal housing authority. If RDA were to cease, the City would need to see if it could create a local housing authority, or at very least a county housing authority and SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 14, 2011 MINUTES PAGE 2 have the money stay in the area. It's recognized that a solution may lie somewhere in the middle, and We recognize a solution in the middle, we want to push the types of language that would 1 insure, a local city that has 20 % money it can create its own auth. C)r 2) grandfathering of projects that meet qualifications. Options will be offered to go to th.e state, compromise. Councilman Addiego asked what would happen to the RDA's property assets. Attorney Mattas stated they would go back to the City, but noted the proposal had not addressed that as of yet. Councilwoman Matsumoto asked if the figure given was after the taxing entities got their share. Attorney Mattas noted the portion to pay existing obligations would, be protected and the successor agency would process the rest. This was not included in proposition 98 caps so school districts would get more money. What was before Council and the Agency today was what other City RDA's and City Attorneys thought was the best way forward, but it was warned that it had not been tested. Legislation would not be in effect until adopted, which could potentially be as early as next week. Councilwoman Matsumoto asked if the legislation was passed, would the City/Agency have the option to revise inclusionary housing. Director Van Duyn replied yes, that it would have to be more on a credit basis; number targets would be harder to achieve. The question had been posed as to what the state intend to do with regional housing. Vice Mayor Garbarino stated the regional housing needs allocations would not be able to be met. Councilman Addiego asked for clarification as the projects the resolution language was intending to protect. Attorney Mattas stated there was no assurance, but it was trying to protect all of the projects, almost $300 million. in future increments and current projects. The language was saying the Agency would pay the City in order for the City to complete the; projects. Councilwoman Matsumoto asked what the odds of success were. Director Van Duyn stated it was completely unknown. He felt confident, however, that these projects were valid improvements and should receive funds. City Attorney Mattas stated 25 or so cities were doing this same action. Mayor Mullin asked if it was possible the legislation, which was still being drafted, could kill this action. Director Van Duyn responded retro dating was an exannple. Attorney Mattas said the legislation had the ability to do that, but as much as a benefit ~on a short term basis that comes from RDA, they may not. Councilman Gonzalez asked when Council would know the c-utcorne of the legislation. Attorney Mattas stated they may see something as early as next week in the interim but a vote on the basic structure of the Governor's proposed budget would be March 30. Mayor Mullin stated he had heard the League of California Cities intended to fight the legislation. Although he didn't feel the legislation was likely to pa~~ss so quickly, he understood the urgency behind these actions. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 14, 2011 MINUTES PAGE 3 Director Van Duyn stated letters could be prepared for the Mayor's signature but as to not require the full support of Council, he just needed direction to move forward. Vice Mayor Garbarino and Councilman Addiego found that agreeable. Motion -Councilman Addiego/Second -Councilman Gonzalez: to approve Redevelopment Agency Resolution No. 1-2011. Unanimously approved by voice vote. Motion -Vice Mayor Garbarino/2"d Councilman Addiego: too approve City Council Resolution No. 7-201 1. Unanimously approved by voice vote. 6. Being no further business, Mayor Mullin adjourned the meetir.~g at 5:04 p.m. Submitted: Approv cl: 1 ~~ ~,c~~_ .~ Anna M. Brown Kevin Mullin Deputy City Clerk, City of South San Francisco Mayor, City of South San Francisco SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL MEETING JANUARY 14, 2011 MINUTES PAGE 4