PC Minutes 1996-05-291
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MINUTES
SPECIAL MEETING OF THE CITY COUNCIL AND
PLANNING COMMISSION
MAY 29, 1996
CITY COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
The City Council and the Planning Commission of the City of
Arroyo Grande met at 6:30 p.m., with Mayor A. K. "Pete" Dougall
and Planning Commission Chairperson John Keen presiding.
2.FLAG SALUTE
Mayor Dougall led the Pledge of Allegiance to our Flag.
3. ROLL CALL
Present with Mayor Dougall and Mr. Keen were Mayor Pro Tem James
Souza; Council Members Michael Fuller and Michael Lady; Planning
Commission Vice Chairperson William Tappan, and Planning
Commissioners William Deviny and Sandy Lubin. Absent were
Council Member Drew Brandy and Planning Commissioners John Soto,
Robert Carr, and Jean Beck. Staff members present were City
Manager Robert L. Hunt, Associate Planner Scott Spierling, and
City Clerk Nancy Davis.
4. ORAL COMMUNICATIONS
No one came forward to speak.
5. SPECIAL WORKSHOP ON REDEVELOPMENT IN ARROYO GRANDE
City Manager Hunt said the City of Arroyo Grande had employed the
services of Urban Futures, Inc. to develop a redevelopment
education program. He said the Council desires to extend the
City's commercial base and ensure the economic vitality of the
City's existing businesses as well. He said one of the tools
used to enhance a commercial base is the California Redevelopment
Act. He said redevelopment is not inexpensive, quick, or without
controversy, but if it is done properly, it can be a positive
influence on the local economy. He said by educating citizens
and City officials, an informed decision can be made as to
whether it is in the best interests of the City to pursue a
Redevelopment Project Area.
Marshall Linn, Urban Futures President, and Jon D. Huffman,
Executive Vice President, spoke to the Council and Planning
Commission. They gave a slide presentation on "Exploring the
Feasibility of Redevelopment in Arroyo Grande."
Mr. Huffman said redevelopment is used by many cities in the
State as a cornerstone of economic revitalization. He said there
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MAY 29, 1996
are approximately 715 redevelopment project areas and 325 active
redevelopment agencies in the State.
The slide presentation included the following:
1. Definition of a potential Survey Area - the first planning
step to, determine whether a redevelopment project of some size
within that area is feasible.
2. Use of eminent domain will cause no changes in the General
Plan or the Development (Zoning) Code.
3. Eminent Domain - Use of eminent domain may be restricted by
the agency to certain land use types. Use of eminent domain for
owner- occupied residential property may be eliminated.
4. Positive impacts occurring in the community as a result of
redevelopment, could be jobs; increased cultural, shopping, and
recreational opportunities; indirect results such as sales tax
and hotel tax revenues; improvements without causing direct
increase in property taxes; increased property values; decreased
deterioration and blight, and improved safety, quality of life,
and overall efficiency in the Project Area and adjacent areas.
5. Ways redevelopment benefits business and industry - land
assembly; land write downs; site preparation; special
assessment /maintenance districts; business development /retention
programs; federal /state funds allocations; industrial development
revenue bonds; public /private partnerships, and technical
assistance.
6. Redevelopment does not directly cause an increase in property
taxes, or affect property tax rates. Any increase in assessed
valuation would occur as a result of sale or improvements to real
property as is the case without redevelopment.
7. Funding redevelopment - by Tax Increment, which is the
increase in property taxes within the redevelopment project area
that results from increases in the project area's assessed value
that exceeds the base year assessed value. The agency can
generate new money for new projects by issuing tax - exempt bonds
against its net gain in property taxes generated by
redevelopment projects.
8. List of affected Taxing Entities that would continue to
receive taxes at a base year level - San Luis Obispo County, Air
Pollution Control District, Library District, Lucia Mar Unified
School District, Community College District, County
Superintendent of Schools, Cemetery District, Port of San Luis
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CITY COUNCIL MINUTES
MAY 29, 1996
Obispo, Flood Control District, and Flood Control Zone 3.
6. CITY COUNCIL /PLANNING COMMISSION /CITY MANAGER /COMMUNITY
DEVELOPMENT DIRECTORS ITEMS AND COMMENTS
Members of the Council; Planning Commission; Marie Cattoir, 195
Orchid Lane, owner of a business on Traffic Way, and Dick Franks,
879 Fair Oaks Avenue, chairperson of the Traffic Commission,
asked questions concerning:
1. Joint venture projects with other taxing agencies
2. Counties holding up formation of a Redevelopment Agency
3. Definition of physical and economic blight in a project area
4. How redevelopment would help cities in a negative growth mode
5. Since redevelopment loans are based on property values, more
people are "bankable."
6. Residential properties still under Proposition 13
7. The downside of redevelopment - it is front - loaded and can be
contentious.
8. The importance of documentation by the RDA.
9. The project containing 20 percent of raw, vacant land so the
agency can benefit when the property is improved.
10. Non - contiguous pieces of land in the project.
11. Low -cost housing within the project area
12. Assembly Bill 1290 regulating redevelopment
13. The project area including almost all the capital projects of
the City.
14. Not increasing the Utility Users Tax to raise monies for
redevelopment up -front funding
15. Expanding a project area after the program has begun.
The City Manager said he and the Urban Futures representatives
would be meeting with the Arroyo Grande Chamber of Commerce and
the Village Association at 7:30 a.m. Thursday, May 30, 1996. He
said another educational meeting would take place on Wednesday,
June 12, 1996, at 6:30 p.m. in the City Council Chambers, 215
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CITY COUNCIL MINUTES
MAY 29, 1996
East Branch Street.
7. WRITTEN COMMUNICATIONS
None.
8. ADJOURNMENT
It was moved by Lady /Souza of the City Council and Tappan /Deviny
of the Planning Commission and the motion passed unanimously to
adjourn the joint meeting at 8:20 p.m.
A. K. "PETE" DOUGAL , YOR
l �
J KEEN,/ ANNING COMMISSION CHAIRPERSON
ATTEST:
NANCY A.
AVIS, CITY CLERK
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