HomeMy WebLinkAboutRDA Minutes 2010-08-11a-
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MINUTES
SPECIAL ME:E'TING
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCO
MUNICIPAL SERVICES BUILDING
COMMUNITY ROOM
WEDNESDAY, AUGUST 11, 2010
CALLED TO ORDER:
ROLL CALL:
AGENDA REVIEW
None.
5:34 p.rn.
Present: Boardmembers Garbarino, Gonzalez and
Matsumoro, Vice Chairman Mullin and
Chairman Addiego.
Absent: None.
PUBLIC COMMENTS - comme~~ts are limited to items on the Special ~'~~eetingAgenda.
STATUS AND DISCUSSION REGARDING POTENTIAL REDEVELOPMENT
PLAN AMENDMEN"t.
Economic and Community Development Manager Fragoso presented the staff report
pertaining to the recommended plan amendments proposed for the Kedevelopment Agency.
She explained the Agency was not expected to take formal action but staff wanted to make
it aware of the recommended amendments proposed to enable the Agency to undertake
desired projects citywide. Formal action would be required at a meeting in the near future
and the Plan Amendment process was anticipated to require one year.
Consultant Libby Seifel addressed the Agency and presented a PowerPoint pertaining to
the Redevelopment Plan Amendment Strategy. She began by providing background and
noting that South San Francisco has six fiscally-merged Redevelopment Project Areas.
Some of the Project Areas were approaching key time and fiscal limits. Bonding capacity
was insufficient to undertake the Agency's 10 year proposed projects. Proposed
development at Oyster Point would require upfront Agency funding, but could generate
significant revenues for the City and Agency in later years as Oyster Point develops and
other Project Areas mature. This would entail a significant upfront investment in order to
move forward expeditiously in the future.
Ms. Seifel explained amendments were needed because the tirne limits on debt incurrence
constrain the Agency's ability to undertake future citywide projects. The existing $15
million debt limit for the Downtown/Central Added Area was not sufficient to undertake
the redevelopment of Oyster Point and other desired projects. Finally, the current tax
increment collection for the Merged Project Area limited long teen Agency resources for
future projects.
Chairman Addiego questioned whether the previous area merger had reset the clock.
Manager Fragoso explained it had not as the time frame continued for each area.
Ms. Seifel advised the Agency had six project areas with two being added to four main
project areas. She then provided a summary of the recommended amendments as follows:
1) combine debt limits for the Downtown/Central Added Area and Merged Project Areas;
2) clarify tax increment ("TI") collection limit for Merged Project Areas to exclude pass-
through payments, housing set-aside, and State take-aways (SERAF); and 3) extend time
limit to incur debt by 10 years for Downtown/Central Added Area and El Camino Added
Area. She explained that without the amendments certain development would not be able
to occur. The amendments would permit significant development in Oyster Point. Further
the revisions to TI and debt limits would increase the funding available for housing and
non-housing projects by $100,000,000.00.
Chairman Addiego advised he did not recall learning of this back when the Agency entered
negotiations with SKS Shorenstein.
Director of Economic and Community Development VanDuyn advised the MOU with SKS
acknowledges extension of debt limits as part of the deal. He further noted that once
development occurred, the site would begin generating tax increment funds.
Ms. Seifel explained the benefits of the amendments included greater bonding capacity, the
ability to fund all ten year Agency projects, the capacity to jointly fund key taxing entity
projects and the ability to provide upfront investment to stimulate new development.
Ms. Seifel concluded her presentation by explaining certain key steps in the Amendment
Process, including Agency discussion. regarding the plan amendment, Agency authorization
of the amendment process, public meetings and community outreach, affected taxing
entity consultations, amended redevelopment plan, preliminary report: blight
documentation, summary of Redevelopment Program and TI projections, Report to State
Agencies, Report on the Plan Amendment, environmental documents, and a joint public
hearing.
Vice Chairman Mullin questioned which Agencies would participate in the joint meeting.
Ms. Seifel explained the Redevelopment Agency and City Council would hold the joint
meeting.
Vice Chairman Mullin queried whether additional risk was associated with the proposed
amendments and whether there were challenges in negotiating with other taxing entities.
Director VanDuyn advised the primary obstacle related to the pass through agency. He
stated the Redevelopment Agency needed to consider looking at partnering with the School
District on certain housing and other projects.
SPECIAL REDEVELOPMENT AGENCY MEETING AUGUST 11, 2010
MINUTES PAGE 2
Boardmember Matsumoto questioned whether the Agency had the ability to pursue
housing projects with income levels above the recent Mid Peninsula project standard so
that School District employees might qualify to take residence in such developments.
Counsel Mattas stated that 80% tax increment funding could be utilized for low and
moderate income housing.
Boardmembers Garbarino and Gonzalez commented on the advantages to partnering with
the School District. However, Boardmember Gonzalez expressed concern about the
School District maintaining its end of the deal.
Director VanDuyn advised a certain amount of pass through finding would continue for
the life of a project. The amendment would prcvide room to negotiate with the School
District regarding housing funding.
Chairman Addiego requested identification of the complete tax increment amount expected
around the year 2020 when the Gateway Redevelopment Area was presently set to expire.
Manager Fragoso advised the number would be provided at the Regular at which the
amendments would be presented for the Board's approval.
ADJOURNMENT
Being no further business, Chairman Addiego adjourned the~~ meeting at 6:18 p.m.
Submitted by:\ Approved.:
`~ G~
ista rtm erk Mark N. Addiego, Chairman
City of Sout ancisco City of South San Francisco
SPECIAL REDEVELOPMENT AGENCY MEETING AUGUST 1 1, 2010
MINUTES PAGE 3