Loading...
HomeMy WebLinkAboutMinutes - City Council - 2011-04-18 - Special Meeting59 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California April 18, 2011 5:15 p.m. The meeting was called to order by Mayor McArthur with the following Council Members present: Bosetti, Dickerson, Jones, and Sullivan. I Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Assistant to the City Manager Clark, Senior Redevelopment Project Coordinator Haddox, Senior Redevelopment Project Coordinator Bade, City Clerk Mize,and Executive Assistant Tipton. . JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of 6:40 p.m., Mayor McArthur convened the Special Meeting of the Redding City Council for a joint meeting with the Redding Redevelopment Agency. . RESOLUTIONS - Making necessary findings and approving the use of Redevelopment funds to acquire the Costco building (Property) for the relocation of Redding Police Department [R-030-050-010] Assistant City Manager Tippin provided an overview of the Report to City Council and Redding Redevelopment Agency (Agency) dated April 12, 2011, incorporated herein by reference, relative to necessary findings needed for the potential acquisition of property located at 1300 Dana Drive, currently owned and occupied by Costco Wholesale Corporation (Costco), for the relocation of the Redding Police Department (RPD). I Mr. Tippin explained that the current location of the RPD, at 1313 California Street, is outdated, under-sized, and inadequate for efficient operation of a modem police force and is located in the Downtown portion of the Market Street Redevelopment Project (Market). He noted that relative to the continued revitalization ofthe Downtown, the RPD occupies a building and site that has been identified within the Downtown Specific Plan as a likely location for a multi-story parking structure in conjunction with the redevelopment of the existing California Street parking facility into a mixed-use "high-rise" structure combining retail, office, and residential uses. Mr. Tippin explained that private development interest has increased relative to the potential for partnering with the Agency on one or more of these significant revitalization activities in the Downtown. A key component to these strategic redevelopment. activities is the relocation of the RPD out of their existing facility. Mr. Tippin stated that the property located at 1300 Dana Drive, currently owned and occupied by Costco, has been recently made available for purchase. He recalled that on March 4, 2011, the Agency entered into a Non-Binding Letter of Intent with Costco to explore the feasibility of such a transaction, including the terms, conditions, and sales price associated with the sale. Mr. Tippin stated that Redevelopment resources have been identified as a potential source of funding for the acquisition of property to accommodate a new location for the RPD. Market will benefit from the relocation of the RPD as stated above, therefore, Market Redevelopment resources are proposed to be utilized. In order for Market to have sufficient revenues to undertake the acquisition, a loan from the Canby-Hilltop-Cypress Project utilizing excess land sale proceeds is likely to be necessary. The upcoming Market Street Project Budget for Fiscal Years 2011-2013, to be presented on May16, 2011, to the Agency, will provide the specific details relative to the proposed financial transaction. I Mr. Tippin explained the necessary findings, pursuant to California Redevelopment Law (CRL) Health & Safety (H&S) Code Section 33445.1(a), requiring that the legislative body make certain findings, as detailed in the staff report, based upon substantial evidence in the record, which must also be adopted prior to the expenditure of redevelopment resources for acquisition of property or for the construction of any building~ facility, structure or other improvement that is publically owned and is located outside and not contiguous to the project area, but is located within the community. Mr. Tippin noted that staff had prepared an Analysis of Proposed Use of Redevelopment Funds, which was included as an attachment to the staff report, to assist with determining if the findings were in evidence, and recommended adoption of resolutions making the necessary findings in connection with the use of redevelopment funds to assist with the acquisition of property necessary for the relocation of the Redding Police Department. 04/18/2011 60 Don Kirk opposed funding of the Costco building purchase and retrofit due to the economic recession and other potential State budget-balancing actions. He further opined that City Hall's campus would be a better location for a new police station. Carl Arness opined that although he agrees with the need for a new RPD, he does not agree with the fiscal theology. He questioned how the City could justify spending this amount of money while having a large budget deficit. Dave Gerard opined that the use of redevelopment funds for this acquisition is a stretch, and a thinly veiled action to avoid losing a major tax contributor to Anderson or Shasta County. He stated that redevelopment monies exist for eliminating blight and for providing affordable housing, noting that he doesn't believe blight currently exists in the Dana Drive area or within the Downtown area. Mr. Gerard opined that the more appropriate place for the new RPD would be on the Civic Center campus. He noted that he has several concerns relative to redevelopment funds being used for the purchase of the Costco building. I Council! Agency Member Sullivan voiced her concern about the misconceptions surrounding the proposed acquisition and requested clarification regarding the action being requested. ~. In response to Council/Agency Member Sullivan, City Attorney Duvernay explained that the Agency's action to be taken tonight is a very technical action with regard to making certain findings about the potential availability of redevelopment agency funds for an acquisition. He affirmed that this does not commit the Agency or the City Council to any future action or to any business deal, rather this is a very preliminary step to provide the ability to use Agency funds for that acquisition, and that is in no way a policy decision. He noted that he had reviewed the proposal and findings completed by the Agency's staff, and confirmed that land proceed monies from a project area are some of the most flexible funds that a redevelopment agency is allowed to, not only loan, but to also grant to other redevelopme\lt project areas within the City. Mr. Duvernay explained that the main topic for discussion is~ limited to whether or not the proposed action is going to assist with the elimination of blight within Market by facilitating the relocation of the police department, regardless of whether it is relocated to the Canby-Hilltop-Cypress Redevelopment Project Area or elsewhere. Responding to Council/Agency Member Sullivan, City Manager Starman confirmed that Costco has been looking to move to a larger facility regardless of whether the City or the Agency provided assistance. I Responding to Council Member/Agency Chair Dickerson, Mr. Tippin noted the second finding is defined as helping to eliminate blight within the project area. He explained that there are two concepts relative to making the finding that the police building is blighted: (1) the existing building is not useable long-term for the police department or for any other use, therefore, the building becomes blighted or soon will become blighted; and (2) the main key to successful revitalization ofthe Downtown area is the relocation of some large commercial ventures into the Downtown area, as well as development of substantial residential units. He noted that the goal of the Downtown 300 is to bring 300 residential units into the downtown area with the bulk of those being market-rate and explained that the ability to remove a public building that is blighted and convert the space into parking or housing would assist with the revitalization of the downtown core and help eliminate overall blighting conditions within the Project Area. Mayor McArthur voiced her approval of progress on obtaining a new RPD after many years of study, discussion and effort. Council Member/Agency Chair Dickerson stated that he could not support making the necessary findings. I A MOTION WAS MADE by Council Member Jones, seconded by Council Member Bosetti, to adopt Resolution No. 2011-40, a resolution of the City Council of the City of Redding making the necessary findings and approving the use of redevelopment funds derived from surplus land sale proceeds to acquire property for the relocation ofthe Redding Police Department. The Vote: AYES: Council Members - Bosetti, Jones, McArthur, and Sullivan NOES: Council Members - Dickerson ABSTAIN: Council Members - None ABSENT: Council Members - None Resolution No. 2011-40 is on file in the office of the City Clerk. 04/18/2011 I I I 61 A MOTION WAS MADE: by Agency Member Bosetti, seconded by Agency Member J ones, to adopt Resolution No. 2011-12, a resolution ofthe Redding Redevelopment Agency making the necessary findings and approving the use of redevelopment funds derived from surplus land sale proceeds to acquire property for the relocation of the Redding Police Department. The Vote:. AYES: Agency Members - Bosetti, Jones, McArthur, and Sullivan NOES: Agency Members - Dickerson ABSTAIN: Agency Members - None ABSENT: Agency Members - None Resolution No. 2011-12 is on file in the office of the Redevelopment Agency. ADJOURNMENT There being no further business, Mayor McArthur declared the meeting adjourned at the hour of7:10 p.m. APPROVED: ATTEST: 9QJVYvt~1 CIty Clerk . 04/18/2011