Minutes 2000-05-04
MINUTES
SPECIAL MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
THURSDAY, MAY 4,2000
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
Chair Lady called the Special City Council/Redevelopment Agency meeting to
order at 7:00 p.m.
2. ROLL CALL
City Council: Redevelopment Aaencv:
X Mayor Lady X Chair Lady
X Mayor Pro Tern Ferrara X Vice Chair Ferrara
X Council Member Runels X Board Member Runels
Absent Council Member Tolley Absent Board Member Tolley
X Council Member Dickens X' Board Member Dickens
Staff Present:
JLjnterim City Manager/Executive Director
L..Director of Economic Development/Administrative Officer
L..City Attorney/General Counsel
L..Special Counsel
lL...Pirector of Administrative Services/Secretary
L..Director of Financial Services/Finance Officer
lL...Pirector of Public Works
3. FLAG SALUTE
Mayor Lady led the Pledge of Allegiance.
4. PUBLIC COMMENT ON WORKSHOP AGENDA
None.
5, REDEVELOPMENT AGENCY WORKSHOP
Economic Development Director/Administrative Officer Sheeley introduced
Redevelopment Agency Legal Counsel Mark Huebsch and Consultant Steve
Harding from Urban Futures, Inc,
Mr. Harding gave a presentation to provide the City Council/Redevelopment
Agency with a better understanding of the California Community Redevelopment
Law as it pertains to general redevelopment purposes, practices, and procedures,
He explained the pre-redevelopment process of conducting a feasibility analysis;
activating a Redevelopment Agency; establishing a Redevelopment Plan and
project area; and establishing an initial Implementation Plan.
SPECIAL CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 4, 2000
Vice-Chair Ferrara asked for clarification on the redevelopment definition of
"blight" .
Agency Counsel Mark Huebsch clarified that the redevelopment definition of
"blight" within most project boundaries in small areas relate to economic
underutilization and infrastructure deficiencies.
Consultant Steve Harding continued with a general overview as to how to finance
redevelopment projects and programs, and reviewed public financing methods
utilized in the implementation of redevelopment projects and programs. He
stated that there was not eminent domain within the City's Redevelopment Plan;
however, the Redevelopment Plan allows voluntary property acquisition. Mr.
Harding spoke about housing programs and the Agency's compliance
requirements for the production, improvement, and preservation of affordable
housing. He explained that 30% of the tax increment goes into the Low-Moderate
Income Fund for affordable housing.
In response to questions from Agency Board Members, Mr. Harding clarified that
the City's Redevelopment area is primarily commercial.
Legal Counsel Huebsch explained the Replacement Rule and the Inclusionary
Rule as it relates to affordable housing. He confirmed that there is very little
residential use within the City's Redevelopment area boundaries. He responded
that the Agency could use the low-moderate funds for meeting affordable
housing with the redevelopment boundaries and within the City limits.
Board Member Dickens asked if homes located in commercial zoning areas had
to be replaced.
Mr. Huebsch responded yes, replacement must occur within four years. He
explained the difference between relocation versus replacement.
Mr. Harding continued his presentation on financing redevelopment activities, He
explained the use of tax increment financing; certificates of participation; special
assessment districts; city funds; developer advances; Federal loan or grant
funds; and State loan or grant funds.
Mr. Harding stated the City's Redevelopment Plan was adopted by the City
Council in May 1997, and the Redevelopment Plan Implementation Strategy was
adopted by the City Council in February 1999, He reviewed the tax increment
projections summary and bonding capacity analysis. He explained that the
projections did not include the valuation of the recent Rite-Aid project. He
reported that by the end of the first quarter of next year, the Agency would have
the ability to issue five-year short-term notes to capitalize on the tax increment
received.
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SPECIAL CITY COUNCIUREDEVELOPMENT AGENCY MINUTeS
MAY 4, 2000
There was discussion about the existing debt in the Redevelopment Agency
budget and how it affects the leveraging ability of the tax increment fund. '
Mr. Huebsch explained the City/Agency Agreement which enables the Agency to
borrow from the City. He stated that this was common practice with
Redevelopment Plans.
Mr. Harding spoke about the Agency's basic economic development operating
principles and how to generate income to maintain services. He stated that
economic development and redevelopment policies and programs are tools in
implementing the City's General Pla,n; economic development an~ redevelopment
activities require sensitivity in fostering economic growth while preserving the
character of the community; strengthening the existing business community
through retention and expansion activities is as important as attracting new
business; the Agency will generally prefer to leverage it funds with private and
other public investment rather than pay 100% of the cost of any activity, and until
the community has achieved a strong economic base that can fund basic
municipal services and facilities, the Agency will need to invest in revenue-
producing development and job creation activities; clear, and that concise and
reasonable development policies and fees are an integral part of the
redevelopment process.
Board Member Runels asked if the bond that was passed for the Lopez Dam
retrofit project would affect the numbers in the Redevelopment Plan.
Mr. Harding replied that it would not,
Mr. Harding reviewed the near-term implementation program and budget for
Fiscal Year 2000-01; the mid-term implementation program and budget for Fiscal
Year 2001-02 though 2004-05; estimated Agency receipts and expenditures for
Fiscal Year 2000-01 through Fiscal Year 2004-05; and estimated Agency housing
fund receipts and expenditures for Fiscal Year 2000-01 through Fiscal Year 2004-
05.
Mr. Harding displayed a map of the Principal Improvement Zones which Include
Grand Avenue, the Village, Traffic Way, and EI Camino Real and spoke about the
long-term implementation plan, He gave an overview of Site Specific
Redevelopment Opportunities as identified in the Redevelopment Implementation
Strategy. Mr. Harding reported that Key Site No.1 at the northeast comer of East
Branch Street and Wesley Street was currently under construction.
There was significant discussion regarding Key Site No, 4 located at the
southwest corner of Grand Avenue and Elm Street and how the Agency could be
more aggressive in its efforts to pursue a project at this location.
Director/Administrative Officer Sheeley spoke about the City's Economic
Development Task Force, which had been working on an Economic Development
Strategy. She reported that she had conducted preliminary discussions
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SPECIAL CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 4, 2000
regarding Key Site No.4 and would continue to work with the property owner and
Urban Futures, Inc.
Board Member Dickens asked if the Agency would be conducting additional
Redevelopment Agency meetings and how it could direct staff appropriately in
regard to redevelopment issues.
Mr. Harding replied that the Redevelopment Implementation Strategy was in
place; however, there was flexibility in the Plan to react to opportunities that may
arise.
Chair Lady opened up the discussion for public comments, and upon hearing no
comments, brought the discussion back to the Agency Board.
Board Member Runels commented that it may be beneficial to focus on one area
in order to utilize resources effectively.
Chair Lady encouraged cooperation with property owners.
Board Member Dickens commented that with the first project, there was a need to
ensure success on both the City's and the owner's part. He stated he would like
to see the Agency pursue opportunities; encouraged other Board Members to
provide direction to staff; and recommended that the Agency come back in a
short period of time to meet again.
Vice-Chair Ferrara thanked Mr. Harding and Mr. Huebsch for the presentation and
suggested that 1) the Agency Finance Officer, Lynda Snodgrass, meet with the
Consultant, Agency Counsel, and Administrative Officer to review the
redevelopment fund; 2) a priority for the Redevelopment Agency should be to
calendar some regular meetings so that it could be ready when opportunities
arise in order to take action; and 3) in regard to Key Site No.4, he had no problem
with shifting priorities in order to pursue a potential project at this location.
Interim City Manager/Executive Director TerBorch commented that that the City
was in the process of preparing the Preliminary FY 2000-01 Budget and there had
been a review of the Redevelopment Agency Budget over the last few weeks. He
stated. the Council would be reviewing the Preliminary Budget in the next few
weeks.
6. ADJOURNMENT to Regular City Council Meeting of Tuesday, May 9, 2000 at
7:00 p.m. in the Council Chambers, 215 East Branch Street.
Time: 9:16 p.m.
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SPECIAL CITY COUNCIUREDEVELOPMENT AGENCY MINUTES
MAY 4, 2000
MICHAEL: LAD~rt
ATTEST:
) J/n(tJruz~
RE, ADMINISTRATIVE SERVICES DIRECTOR!
AGENCY SECRETARY
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