R 4343 RESOLUTION NO. 4343
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING A FUNDING AGREEMENT BY AND BETWEEN
THE CITY AND THE ARROYO GRANDE REDEVELOPMENT AGENCY,
AND MAKING THE FINDINGS REQUIRED BY HEALTH & SAFETY
CODE SECTION 33445, FOR AGENCY FUNDING OF THE LE POINT
STREET IMPROVEMENTS AND PARKING LOT EXPANSION
PROJECT, PW 2011 -02
WHEREAS, the Arroyo Grande Redevelopment Agency ( "Agency ") is a public body,
corporate and politic, authorized under the provisions of the California Community
Redevelopment Law (Health & Safety Code §33000 et seq.) ( "CRL "), to undertake
redevelopment activities in the community of Arroyo Grande; and
WHEREAS, the City of Arroyo Grande ( "City") is a municipal corporation organized and
existing under the laws of the State of California; and
WHEREAS, the City Council, by adoption of Ordinance No. 487 C. S. on June 10, 1997,
approved and adopted the Redevelopment Plan for the Arroyo Grande Redevelopment
Project Area, as thereafter amended from time to time ( "Redevelopment Plan "); and
WHEREAS, the Redevelopment Plan delineates the Arroyo Grande Redevelopment
Project Area ('Project Area "); and
WHEREAS, the City has commenced a public project, known as Le Point Street
Improvements and Parking Lot Expansion Project, PW 2011 -02, to (i) construct an
additional approximately 73 public parking spaces on a City owned site (with a portion
leased by the City with option to purchase) located to the south and east of the house at
132 Le Point Street, (ii) widen Le Point Street, (iii) install a water line, (iv) sidewalk
improvements, and (v) associated improvements related to compliance with the
Americans With Disabilities Act (collectively, the "Public Project "); and
WHEREAS, the site of the Public Project is within the Project Area and the Public
Project will benefit and serve the Project Area, and specifically the Village Commercial
District portion of the Project Area, by alleviating the blighting condition of inadequate
public improvements including inadequate public parking facilities; and
WHEREAS, pursuant to Health and Safety Code Sections 33445, the Agency, with the
consent of the City, may pay for the cost of the land for and the installation of publicly
owned facilities and improvements inside or contiguous to a redevelopment project area
within the community, provided the Agency and City Council make certain required
findings set forth in Sections 33445; and
WHEREAS, the City and Agency, pursuant to the authority set forth in Health and
Safety Code Sections 33445, desire to make available a portion of the Agency's tax
increment revenues allocated to and received by the Agency pursuant to Health and
Safety Code Section 33670(b), in an amount not to exceed SIX HUNDRED FORTY -SIX
RESOLUTION NO. 4343
PAGE 2
THOUSAND THIRTY -NINE DOLLARS ($646,039.00) (the "Agency Funds "), to pay for,
or assist in paying for, the construction of the Public Project; and
WHEREAS, the Agency staff and City staff have prepared a Funding Agreement (the
"Agreement ") to commit and effectuate the use of the Agency Funds in the amount
described above (the "Project Costs ") for the Public Project; and
WHEREAS, because no part of the Public Project is a publicly owned building, Health
and Safety Code Section 33679 is not applicable; and
WHEREAS, the City and Agency each desire to enter into the Agreement for the
purposes set forth above and declare that their entering into the Agreement is in the
best interests and welfare of the residents of the Project Area as well as the businesses
located within the Village Commercial District portion of the Project Area, and
effectuates the purposes of the Redevelopment Plan, including but not limited to as it
pertains to the Village Commercial District portion of the Project Area, and the purposes
of the CRL specifically therein the policies and purposes evidenced by Health and
Safety Code Section 33445.
NOW, THEREFORE, the City Council of the City of Arroyo Grande resolves as follows:
Section1. The foregoing Recitals are true and correct and are incorporated herein and
made a part hereof.
Section 2. The City Council finds and determines:
(1) That, pursuant to Health and Safety Code Section 33445(a)(1), the Public
Project, all of which is located inside or contiguous to the Project Area, to be funded
with Agency Funds pursuant to the Agreement, is of benefit to the Project Area by
helping to eliminate blight within the Project Area, in that:
(a) By adoption of Ordinance 487 C. S., the territory within the Project
Area has been conclusively determined under law to be a blighted area as defined by
law.
(b) The essential purpose of the Redevelopment Plan is the
redevelopment of the Project Area by alleviating blighting conditions in the Project Area,
which Ordinance No. 487 C. S. identified as including inadequate public improvements
including inadequate parking facilities. The Redevelopment Plan identifies as an
objective the provision of public infrastructure and community facilities, including
community facilities addressing public infrastructure improvements and community
facilities such as construction or reconstruction of streets and utilities, improvements to
meet ADA standards, and improvements to meet parking deficiencies including in the
Village portion of the Project Area.
RESOLUTION NO. 4343
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(c) The Public Project will therefore directly help alleviate the foregoing
described blighting conditions and thereby benefit the Project Area, including therein the
Village Commercial District portion of the Project Area.
(2) That, pursuant to Health and Safety Code Section 33445(a)(2), no other
reasonable means of financing the Public Project is available to the community for the
following reasons:
(a) Potential actions by the State of California to address the State
budget are likely to reduce local revenues and increase mandated local services, and
these likely changes have necessitated a reassessment of the need for retention of City
funds for other projects and the need for alternative funding for the Public Project.
(b) Other City monies are dedicated to critical police, fire, and other
necessary expenditures, including the other capital improvement projects shown on the
City's Capital Improvement Program.
(c) The continued decline in the local and national economy, and
reasonable projections in connection therewith, has delayed, and potentially reduced,
City funds necessitating the need for alternative funding to be used for the payment for
the Public Project.
(d) Limits set forth in the State Constitution and State law on local
control over traditional revenue sources make it infeasible for the City to raise new local
revenues to meet the cost of the Public Project.
(e) Sound financial practices require that payment for all or part of the
cost of the Public Project be made using the Agency Funds and the failure to use the
Agency Funds would be detrimental to the community including specifically the
residents and businesses within the Village Commercial District portion of the Project
Area.
(3) That, pursuant to Health and Safety Code Section 33445(a)(3), the
payment of the Agency Funds for the Public Project is consistent with Agency's adopted
Section 33490 Five Year Implementation Plan FY 2009 -10 Through FY 2013 -14 (the
"Implementation Plan "), in that:
(a) A goal of the Agency as set forth in the Implementation Plan is to
provide necessary public facilities to implementation the preservation and expansion of
the Village Commercial District portion Project Area, including infrastructure upgrades.
(b) The Implementation Plan identifies inadequate public parking
facilities as a blighting condition continues to exist in the Project Area.
(c) The Implementation Plan specifically identifies the Public Project as
a forecasted program and project to be undertaken by the Agency during the
Implementation Plan period.
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(4) That, consistent with Health and Safety Code Section 33445(b)(2), public
parking projects, street and sidewalk improvements, and walkway and handrail
improvements, within Project Area are among the type of public infrastructure and
facilities improvements identified in the Redevelopment Plan necessary for promotion of
economic development in the Project Area and the economic restructuring of the Village
area of the Project Area.
Section 3. The City Council hereby approves the Funding Agreement in the form on file
with the City Clerk concurrent with the adoption of this Resolution, and authorizes and
directs that either the Mayor or City Manager sign the Funding Agreement on behalf of
the City.
Section 4. The City Manager and authorized designees are hereby authorized and
directed to take such other and further actions, and sign such other and further
documents, as are necessary and proper in order to implement this Resolution on
behalf of the City.
Section 5. Pursuant to Section 15168 of the State CEQA Guidelines (14 Cal. Code
Regs. § 15000 et seq.), the funding and activities that are the subject of this Resolution
are covered by the previously approved Mitigated Negative Declaration adopted by the
City Council on February 8, 2011.
Section 6. If any section, subsection, subdivision, paragraph, sentence, clause or
phrase, or portion of this Resolution is, for any reason, held to be unconstitutional or
invalid or ineffective by any court of competent jurisdiction, or is rendered invalid, void,
or unenforceable as a result of a change in State or federal law, such decision shall not
affect the validity or effectiveness of the remaining portions of this Resolution or any
part thereof. The City Council herby declares that it would have adopted this Resolution
and each section, subsection, subdivision, paragraph sentence, clause or phrase of this
Resolution irrespective of the fact that one or more sections, subsections, subdivisions,
paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or
ineffective. To this end the provisions of this Resolution are declared to be severable.
On motion of Council Member Costello, seconded by Council Member Ray, and on the
following roll call vote, to wit:
AYES: Council Members Costello, Ray, Guthrie, Brown, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 8 day of March 2011.
RESOLUTION NO. '1393
PAGE 5
TONY FER2. : , MAYOR
ATTEST:
KELLY W MO�E, CITY CLERK
APPROVED AS TO CONTENT:
�VEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
f\---- TI OTHY J. RMEL, CITY ATTORNEY
(__
I
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San
Luis Obispo, State of Califomia, do hereby certify under penalty of perjury, that
Resolution No. 4343 is a true, full, and correct copy of said Resolution passed
and adopted at a regular meeting of the City Council/Redevelopment Agency of
the City of Arroyo Grande on the 8th day of March 2011.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 10
day of March 2011.
_i / c
KELLY E,ORE, CITY CLERK