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HomeMy WebLinkAboutMinutes - City Council - 2003-08-18 - Special Meeting 164 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California August 18,20035:15 p.m. The meeting was called to order by Vice Mayor Pohlmeyer with the following Council Members present: Kight, Mathena, and Stegall. Mayor Cibula was absent. Also present were: City Manager Warren, Deputy City Manager Starman, City Attorney Fuller, Financial Management Specialist Sundin, Senior Redevelopment Project Coordinator Morgon, Senior Redevelopment Project Coordinator Haddox, Senior Redevelopment Project Coordinator Thompson, City Clerk Strohmayer, and Office Services Supervisor Rudolph. I JOINT MEETING WITH THE REDDING REDEVELOPMENT AGENCY At the hour of 5: 17 p.m., Vice Mayor Pohlmeyer called to order the Special Meeting of the Redding City Council for a joint meeting with the Redding Redevelopment Agency. LETTER OF INTENT - Partnership with Dr. Craig Kraffert Concerning Public Improvements in the Vicinity of Properties Located at 1701 and 1729 California Street (R-030-145-350) Deputy City Manager Starman highlighted the Report to the City Council and Redevelopment Agency dated August 7,2003, concerning the request by Dr. Craig Kraffert for the City and/or the Agency to install public improvements in the vicinity of his properties located at 1701 and 1729 California Street. He recalled that the Agency, at its meeting on April 21 ,2003, had reviewed and discussed the provisions of Dr. Kraffert's plan to redevelop these properties. Improvements to the properties included remodeling to create nine new retail storefronts with attractive facades along the two street frontages and to pave the alley behind the project. To complement these improvements, he requested that the City and/or the Age1).cy install "demonstration block" streetscape improvements adjacent to the project, underground the overhead utility lines in the adjacent alley, and paint the traffic signals at the intersection of Placer and California Streets. I Mr. Starman explained that while the Board had expressed an interest in the project, staff was directed to: (1) develop more detailed cost estimates; (2) determine the cost to install streetscape improvements on the opposite sides of the streets; and (3) identify any other priorities for the use of funds set aside for undergrounding overhead electric lines. Mr. Starman provided an overview of the cost estimates developed for the proposed work: Streetscape Improvements - The cost to install the improvements along the south side of Placer Street, between Market and California Streets, and along the east side of California Street, between Placer and Sacramento Streets, is estimated to be approximately $300,000. To add the improvements to the west side of California Street and/or the north side of Placer Street to match the opposite sides of the street would add approximately $150,000 per segment. Undergrounding of Overhead Utility Lines - The total cost to underground the overhead utility lines was estimated to be approximately $175,000. This includes $115,000 from the Redding Electric Utility to underground the City's electric lines and to install transformers and conduit for the telephone lines and $60,000 to convert the individual electric and phone services from overhead to underground service. He noted that SBC would assist the project by installing the wire in the conduit and making the service connections at no cost. In addition, the cost to underground the cable television lines is the responsibility of Charter Communications. He pointed out that Dr. Kraffert agreed to demolish a small addition to the rear of the buildings and to dedicate the necessary land for the ground-mounted transformers. I Mr. Starman indicated that there are currently three projects which have priority over Dr. Kraffert's project relative to the undergrounding of overhead utility lines. They are as follows: (1) Cypress Avenue, between Pine Street and Athens A venue; (2) Cypress Avenue, between Athens and Hartnell Avenues; and (3) Parkview Avenue. Based on existing and planned allocations, he estimated that funding for Dr. Kraffert's project would not be available until the summer of 2005. 8/18/2003 165 Traffic Signal Enhancements - The cost to paint the traffic signals green at the intersection of Placer and California Streets and to add new illuminated street name signs was estimated at $10,000. Based on discussions with Dr. Kraffert, Mr. Starman pointed out that Dr. Kraffert is of the opinion that all of the public improvements are essential to make his proposed project a success. Thus, if the City and/or the Agency ultimately decides not to participate in one or more of the improvements, Dr. Kraffert will downscale his project and pursue a less ambitious rehabilitation plan for the property. I Mr. Starman stressed that Dr. Kraffert's project is consistent with the Downtown Specific Plan (Plan) and projects contemplated directly or implicitly in the Plan. He estimated that Dr. Kraffert's proposed streetscape improvements would most likely be undertaken by either the City or the Agency over the next five to ten years in accordance with the Plan, however, it is advantageous to have a private sector partner to participate in these improvements. He explained that, as stated in the Letter of Intent (LOI), Dr. Kraffert's responsibilities as outlined in the LOI would be completed well in advance of the City's or Agency's improvements, thereby providing an opportunity to ensure that Dr. Kraffert proceeded with his project as envisioned. Mr. Starman recommended that the City Council and the Agency approve the Letter ofIntent with Dr. Kraffert to facilitate redevelopment of properties located at 1701 and 1729 California Street. Council/Agency Member Stegall was pleased to hear that Dr. Kraffert would be required to fulfill his obligations in accordance with the LOI in advance of the City/Agency proceeding with their improvements. She also noted the importance of knowing that the City/Agency would eventually pursue the improvements as part of the implementation of the Plan. She questioned whether the approval of the LOI would in any way impact the City/Agency's ability to continue its partnership with Shasta College. I Mr. Starman replied that between the Agency's financial resources, including the new bond issue for Market Street, and Community Development Block Grant (CDBG) funds, there would be adequate resources to fulfil the obligation made to Shasta College as well as accommodate Dr. Kraffert's request. In response to Council/Agency Member Kight, Mr. Starman did not foresee parking being reduced along California Street. He added that staff had spoken to the other affected property owners and, while not in opposition to the project, they are not particularly excited by it either. He noted that there would be some impact to these two businesses during the construction of the. streetscape improvements, but staff will try to accommodate their schedules and alleviate as much impact as possible. In response to Council/Agency Member Mathena, Mr. Starman explained that the City received in excess of$l million annually for the CDBG Program. He opined that the use of CDBG funds, coupled with Agency funding, would not significantly impact projects foreseen in the next two or three years. He also envisioned that adequate funding would be available through the Redding Electric Utility during the four-year period contemplated in the LOI to complete the priority projects and meet the time line set forth in Dr. Kraffert's proposal. I Frances Jenkins, Redding resident, encouraged the Council/Agency's approval of Dr. Kraffert's request. She stated that so often partnerships were made with nonprofit agencies, which generated very little or no additional property or sales tax. She stressed that Dr. Kraffert's proposal is in concert with the Plan and would allow the City/Agency to partner with a private entity and generate additional property and sales tax to ultimately support the City's General Fund. Council/Agency Member Kight questioned how many new jobs would be created by Dr. Kraffert's proposal. Mr. Starman replied that it would be difficult to estimate the total number, as much of the space was still in need of rehabilitation, therefore, the space had not been leased. However, Dr. Kraffert's business at this location currently employs 14 people. In response to Council/Agency Member Mathena, Mr. Starman indicated that the Plan contemplates streets cape improvements in this area but would not be as intense as those made to both Yuba and Market Streets. 8/18/2003 166 Vice Mayor/Chairpohlmeyer supported Dr. Kraffert's request as it would complem~nt and protect the City/Agency's other significant improvemen~s in the area, incre~se p~destrian activity, result in increased sales tax and tax increment revenue, and support the revitalization effort in Downtown. He opjned that the traffic along Calif~~ia an,d Placer Streets is signifi,cantIy greater than Market and Yuba Str~~ts a~d he is supportive of staffs recommendati~m. ' . I Council/Agency Member Kight noted that the only element of the proposal which concerned him is the undergrounding of t~e u,tilities, otherwise, he supported the proposal. Council/Agency Member Mathena questioned ~e ,timi~g of the improvements had Dr. Kraffert's propos~l n~t been m~qe. He also asked whet~er qr. J(raffert would support the completion of his impf(:>Vet!l:el)t~ before the City/Agency proceeded with the streetscape improvements to avoid any improvements being destroyed with the remodel. I Vice Mayor/Chair pohlmeyer opined that it makes economic sens,e to complete the improvemeQ.ts at this point in time, especially give~ that the~e is a private party willing to invest substantial m,oney in tl].e downtown, thereby contributing to its rev,italization. B:e also noted that he would not have been supportive of such a large expenditure of funds in the downtown if it had not been for the Shasta College Project. . . Council/ A.gency M~mber Kight ,pointed out that h~ ~aQ, beel) looking for partnerships to assist in the revitalization of the do",ntown. He stressed. that his concern is relative to the comm:unity's priorities for the undergro,unding of utility lines. Ifhe was convinced that this is a project that ranks high on the list, he could support t~e recommendation. , ; ,I , Vice Mayor/Chair Pohlmeyer reit~rated ~hat t~~ undergrounding would not be completed ulltil the 2005 funding cycle. He stated that he had vis~ted the alley it} question, and it i~ ullsightIy, and appears ~o be in an ~I).safe condition. jHe viewed this as an ex~ellent oppprtunity to improve t~e area all<;! build upo,n the investtp.ents the City/Agency had already made in the area, such as the Cascade Theatre and Redding Hotel. , ; I I Council! Agency Membt:r Stega1l.al~o expressedcon,c~rn~ relative to the undergrounding of the uti~ity lines which prompted ~er to request:tl}~ Redding Electric Util~ty's priority list for undergrounding utility lines. She noted, however, that the~e is uncertainty as to the budget in 2005 and believed it is time to ma~e improve!ll,ents in tl,1e downtown. I I I " In response to Council! Agency Member Kight, Mr. Starman confirmed that the City Council has jurisdiction over the requested signal alld l;mdergrounding improvements and noted that it will take all three parties to make the LOI binding. , " I City Manager Warrell reemphasize4 t~at the CitY/Agency iJUpfovements would, only b~ completed after Dr. Kraffert had fulfilled hi,S obligations under the LO!. He suggested th~t the Council/Agency approve the LOI, exc.1uding t~e ~mdergrounding of the utility lines, ,and revisit the matter after June 30,2004, at which ti)ne the coirimunity's undergrounding needs could be revisited. It was:the consensus of the City Council to continue its discussion and decision relative to the proposed LOI with Dr. Kraffert until it~ meeting of September 2,2003. . 1 I:, l' l Counqil Member Kight requested staff to provide a list of the top ten priorities for the undergrounding of overhead utilities. Dr. Cr.aig Kraffert:ac~nqwledged that while this is ~ very difficult decision, it is important to consid~r the following points: (1) the poles are very proll1inent; (2) the alley would be revitalized; ~nd (3) property w.oulQ ~e provided freeiof charg~ to the City for the placement of the transformers. He, explained that the r~tail spaces,would front o~ Cali f9rnia , Street, however, there would be ~ccess to his e-commerce business via the 'alley. Within the next one to two y~ars, he antiqipateg h~s business will emp,loy 30 or more individuals. He stressed that the downtown is ,about appearance, and the proposed improvemet:lts make sense on all levels. He explaineq that he would accept any decision lllade by the Council/Agency, however, if the entire proposal is not approved, rehabilitation plans for the properties would be altered. He opined that one porti<)ll of the proposal does not make sense without all the other components. I 8/18/2003 167 JOINT MEETING WITH THE REDDING REDEVELOPMENT AGENCY AND REDDING JOINT POWERS FINANCING AUTHORITY At the hour of 5:50 p.m., Vice Chair Pohlmeyer called to order the Special Meeting of the Redding Joint Powers Financing Authority for a joint meeting with the Redding Redevelopment Agency and the Redding City Council. I ISSUANCE AND ESTABLISHMENT OF ADDITIONAL TERMS RELATIVE TO THE CANBY-HILLTOP-CYPRESS REDEVELOPMENT PROJECT TAX ALLOCATION BONDS, SERIES E (R -030-065-025) Deputy City Manager Starman anticipated that the bond issues relative to the Market Street and Canby-Hilltop-Cypress Redevelopment Project Areas could be sold as early as Tuesday. He recalled that staffhad previously mentioned that interest rates had increased significantly which had subsequently affected the possible refinancing of some existing bonds. In particular, the Canby-Hilltop-Cypress 1993 Series D Bonds were on the verge of not being economically feasible to refinance. While there is currently a slight advantage to proceeding with the refinance, he cautioned that any small change in the market conditions could provide a negative return if certain bonds were refinanced. Therefore, to provide staff with maximum flexibility, Mr. Starman recommended that the three agencies adopt resolutions to permit the elimination of the refinancing of existing bond debt from the new bond issue should it become necessary. He noted that ifthese resolutions are not utilized, staff would be requesting that they be rescinded at a subsequent meeting. I MOTION: Made by Council Member Kight, seconded by Council Member Stegall, that Resolution No. 2003-127 be adopted, a resolution ofthe City Council of the City of Redding approving the issuance and sale of the Redding Redevelopment Agency Canby-Hilltop- Cypress Redevelopment Project Tax Allocation Bonds, Series E. Voting was as follows: A YES: Council Members - Kight, Mathena, Stegall and Pohlmeyer NOES: Council Members - None ABSENT: Council Members - Cibula ABSTAIN: Council Members - None Resolution No. 2003-127 is on file in the office of the City Clerk. Mr. . Starman recognized Financial Management Specialist Sundin for her efforts in expediting the Agency's bond issues. There being no further business, at the hour of 5:54 p.m., Vice Mayor/Chair Pohlmeyer adjourned the Special Meeting of the Redding City Council. APPROVED I ATTEST: c~~tj 8/18/2003