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HomeMy WebLinkAboutRDA Minutes 2005-04-27 MINUTES REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO REGULAR MEETING WEDNESDAY, APRIL 27, 2005 MUNICIPAL SERVICE BUILDING COMMUNITY ROOM 33 ARROYO DRIVE CALL TO ORDER 7:01 p.m. (Cassette Tape No. 1) ROLL CALL Present: Boardmembers Garbarino, Gonzalez and Matsumoto, Vice Chair Fernekes and Chair Green Absent: None PUBLIC HEARING o Joint Redevelopment Agency/City Council public hearing regarding proposed amendments to the redevelopment plans for the Downtown/Central, E1 Camino corridor, Gateway and U.S. Steel/Shearwater redevelopment project areas to: fiscally merge the four project areas, add territory to the Downtown/Central Project Area; extend the time limit for the exercise of eminent domain within the Downtown/Central Project Area and the original E1 Camino Corridor Project Area; consideration of new Implementation Plans for all four Redevelopment Areas. (approve resolutions) Public hearing for the Agency and City Council were opened concurrently. Housing and Redevelopment Manager Fragoso summarized the objective of the fiscal merger and plan amendments to facilitate redevelopment of the project areas. Assistant Agency Counsel Susan Bloch reported on the procedures, explained the noticing procedures and introduced documents in the record. (Refer to attached "Summary of the Report to Council".) Redevelopment consultant, Elizabeth Seifel, briefly described the major elements of the fiscal merger, plan amendment and implementation plan. Dr. Charles Bona, businessman, requested that consideration be given to the under- grounding of utilities along Mission Road, as the poles and wires are an eyesore. (Photos were distributed to Agency/Council.) Ms. Mary McMillan, Deputy County Manager and speaking on behalf of the County of San Mateo, presented two letters opposing the proposed fiscal merger and expansion of the redevelopment project areas that will result in the loss of anticipated revenues over the term of the proposal. (Copies of letters submitted to Agency/Council.) Public hearing closed. Hearing no objections from Council members, Chair Green stated that the Agency/ Council will take under advisement the fiscal merger and plan amendments, and all oral and written public testimony. With concurrence from Agency/Council, he stated the joint meeting is continued to May 11, 2005 and directed staff to prepare written findings in response to written objections for consideration at the May 11 meeting. AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR No changes. None. 1. Motion to approve the minutes of April 13, 2005 2. Motion to confirm expense claims of April 27, 2005 in the amount of $39,707.05 Motion-Fernekes/Second-Garbarino: To approve the Consent Calendar, as submitted. Unanimously approved by voice vote. ADJOURNMENT Being no further business, Chair Green adjoumed the meeting at 7:24 p.m. Submitted by: y · . y~ City of South San Francisco Ap, proved: Raymohd L. Green, Chair City of South San Francisco REGULAR REDEVELOPMENT AGENCY MEET1NG APRIL 27, 2005 MINUTES PAGE 2 Council Summary of the Report to Council South San Francisco Plan ,Amendments and Fiscal Merger Pursuant to the California Community Redevelopment Law (CRL), a redevelopment plan must be accompanied by a report to the legislative body (Report to Council). The report must present the reasons for selecting the project area, physical and economic conditions within the project area, proposed redevelopment projects and activities, pwposed methods of financing, tax increment revenue projections, and financial feasibility. The report must also document the agency's adherence to the legal requirements for the Plan Amendments and Fiscal Merger. This Executive Summary provides a synopsis of the Report to Council for the proposed amendments to the existing four Redevelopment Plans (Plan Amendments). If adopted by the City Council, the Plan Amendments and Fiscal Merger will accomplish the following: · Fiscally merge the four existing Project Areas: Downtown/Central, E1 Camino Corridor, Gateway and Shearwater Redevelopment Projects. · Create a combined limit on the amount of tax increment collected and outstanding bonded indebtedness for the Agency's four existing Project Areas. · Extend limited eminent domain authority for an additional 12 years in the original Downtown/Central Project Area and the original El Camino Corridor Project Area. (It will not authorize eminent domain over properties on which persons reside.) · Add the Oyster Point Marina area to the Downtown/Central Project Area (Added Area). Physical and Economic Conditions in the Project Areas The Project Areas (Downtown/Central, E1 Camino Corridor, Gateway and Shearwater) suffer from adverse physical and economic conditions that need to be addressed if the Project Areas are to attain full economic potential. Existing adverse conditions found in the Project Areas include seven of the nine CRL-defiued categories of physical and economic blight: · Buildings in which it is unsafe or unhealthy for person to live or work, including unreinforced masonry buildings, deteriorated commercial and residential structures, and informally constructed buildings. · Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots, including earthquake hazards and poor soil conditions, flooding, the presence of hazardous materials, access issues, and public improvement deficiencies. · Adjacent or nearby uses that are incompatible with each other such as industrial uses bordering retail and restaurant uses or residential/industrial edges. · The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership; for example, inadequately sized lots and irregularly shaped parcels. · Depreciated or stagnant property values or impaired investments, including poor performance of ~ lodging establishments and businesses producing sales, and the presence of hazardous materials such as Leaking Underground Fuel Tanks (LLIFTs) and Spills, Leaks, Investigations and Cleanups Sites (SLICS). South San Francisco Redevelopment Agency ES-1 South San Francisco Plan Amendments and Fiscal Merger Executive Summary of the Report to Council April 2005 · Economic indicators of distressed buildings or lots such as vacant and underutilized lots. · Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. Redevelopment Program The Agency will continue to implement the Redevelopment Program set out in the individual Redevelopment Plans for each existing Project Area, and the Redevelopment Program for the Downtown/Central Project Area will be extended to the Added Area. The Redevelopment Program will alleviate the adverse conditions in the existing Project Areas, as well as the Downtown/Central Added Area. The projects and activities proposed to alleviate the blighting conditions fall into five categories: 1. Public infrastructure, circulation and parking 2. Public facilities 3. Economic development 4. Property acquisition, demolition and site preparation 5. Affordable housing. Affordable Housing and Housing Set Aside Funds The CRL requires that 20 percent of all tax increment revenues generated by a redevelopment agency be used for increasing, improving and/or preserving a community's supply of affordable housing. The Housing Set Aside fund will be a significant source for funding affordable housing in the Project Areas. Implementation Plan The CalifOrnia Community Redevelopment Law (CRL) requires each redevelopment agency administering a redevelopment plan to prepare and adopt a five year Implementation Plan. The principal goal of he Implementation Plan is to guide an agency in implementing its redevelopment program, which will alleviate blighting influences. In addition, the affordable housing component of the Implementation Plan provides a mechanism for a redevelopment agency to monitor its progress in meeting the affordable housing requirements and obligations under the CRL as well as the affordable housing needs of the community. · The Report to Council includes the proposed Five Year Implementation Plan (FY 2004/05 to FY 2008/09) for the proposed Plan Amendments. · The Implementation Plan also sets out the proposed projects and activities for the Non-Housing moneys for the next five years. · The Agency estimates that over the next five years, appro×imately 480 units will be produced in the Project Areas, 130 of which will be affordable to very low, Iow or moderate income households. · Over the life of the Redevelopment Plans, the Agency estimate that approximately 1,900 housing units will be produced, and up to approximately 680 units will be available to very low, low or moderate income households. Financial Feasibility This section of the Report to Council describes the public and private financing aspects of the Redevelopment Program. It presents estimated total funding requirements, identifies potential resources and methods of financing available to the Agency, present projected tax increment revenues, and assess the general financial feasibility of the Plan Amendments and Fiscal Merger. South San Francisco Redevelopment Agency ES-2 South San Francisco Plan Amendments and Fiscal Merger Executive Summary of the Report to Council April 2005 · The Project Areas are projected to generate $729.7 million in incremental tax revenues in nominal dollars ($381.8 million in constant FY2004/05 dollars) over the life of the Redevelopment Plans. · The affected taxing entities for the existing Project Areas would continue to receive their contractual pass through payments following the Plan Amendments and Fiscal Merger. · The affcctcd taxing entitics for thc existing Projcct Axcas would also receive statutory pass through payments, if cntiflcd and if no contractual pass through agreement is in place. · The affected taxing entities for the Downtown/Central Added Area would receive statutorily mandated pass through payments in proportion to their property tax levies within the Added Area. · The resources of the public and private sectors alone without redevcloproent continue to be insufficient to eliminate blighting conditions in thc existing Project Areas and the proposed Added Area. · It is reasonable to conclude that the Redeveloproent Program is financially feasible within the duration of thc Redeveloproent Plans. South San Francisco Redevelopment Agency ES-3 South San Francisco Plan Amendments and Fiscal Merger Executive Summary of the Report to Council April 2005