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Minutes 1996-05-29 148 ~ .~ MINUTES SPECIAL MEETING OF THE CITY COUNCIL AND PLANNING COMMISSION MAY 29, 1996 CITY COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA 1. C~T,T, 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 aJ,J, 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 Spierlirig, and city Clerk.Nancy Davis. 4. ORAL COMMUNICATIONS No one came forNard 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 redevelopmen~ 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 are approximately 715 redevelopment project areas. and 325 active 1 . . 149 CITY COUNCIL MINUTES MAY 29, 1~96 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 redevelopment will cause no changes ift 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 o~ 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 cultux'al, shopping, Cilid 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 adjacen~ 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, Cind 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 Obispo, Flood Control District, and Flood Control Zone 3. 2 I 150' ,. CITY COUNCIL MINUTES MAY 29, 1996 6. CITY COUNCILIPLABNING COMMISSION/CITY MANAGER/COMMUNITY DEVELOPMENT DIRECTORS ITEMS AND COMMENTS Members of the Council; Planning Commission; Marie Cattoir, 195 r 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 a~ea 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 East Branch Street. 3