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HomeMy WebLinkAboutMinutes - City Council - 1983-04-19 127 •City Council , Adjourned Regular Meeting Police Dept. & Council Chambers Redding, California April 19, 1983 7:00 P.M. .._ III The meeting was called to order at 4:00 P.M. , by Mayor Pugh with the following Council Members present: Fulton, Kirkpatrick, Pugh, and Gard. Council Members absent: Demsher Also present were City Manager Courtney, City Attorney Hays, Public Works Director Arness , Planning and Community Development Director Perry, Housing and Redevelopment Administrator Henson, Finance Director Downing, City Clerk Nichols, and Minute Clerk Rupp. i REPORT FROM CITY ATTORNEY City Attorney Hays asked that Council adjourn to a closed session at this time to discuss the details of the settlement conference pertaining to the Canby-Hilltop-Cypress Redevelopment Project, before dealing with the items in open session. a At the hour of 4:12 P.M. , Councilman Demsher entered the closed session. 1 At the hour of 4:20 P.M. , Council reconvened to open session. J City Attorney Hays stated that as Council is aware, the City has received a response from the County to the City' s latest proposal regarding the Canby-Hilltop-Cypress Redevelopment Project. That response was communi- cated to the Court this afternoon by County Counsel John Kenny as well as Special Counsel for the City, Dave Beatty. Mr. Hays advised that the Court III was advised by both parties that the City is interested in settling the matter; however, the County' s offers regarding bed tax and sales tax were unacceptable to the City. On that basis, he said, the City has found the counter offer by the County to be unacceptable, but would continue to seek settlement of the matter sometime in the near future. I Mr. Hays felt that both the City and the County have made some movement in the negotiation process and he recommended that the City renew its latest Vi . offer to the County. S MOTION: Made by Councilman Demsher, seconded by Councilman Kirkpatrick , rejecting the County' s counter offer and renewing the City' s latest offer to the City regarding Canby-Hilltop-Cypress Redevelopment Project; and include the City' s intention to negotiate. The Vote: Unanimous Ayes Councilman Demsher stated that everyone feels this is a project that can happen with further efforts between the County and the City to attempt to come together on issues that divide the two agencies. He emphasized that the project needs to happen and possibly the day will come when we look at our consciences to determine if projects in that area may be approved until the redevelopment project gets underway. Mr. Demsher said the problems the City would be creating would be too onerous to be left without any activ- ities to resolve them. Mayor Gard emphasized that this is a joint City/County planning effort which will bring a billion dollars into the local economy and over 18,000 jobs. She stressed that it will be an obvious economic benefit to the whole region and it is important that we come to a resolution. I Housing and Redevelopment Administrator Henson reviewed the project improve- ments, financing, and economic effects. He pointed out that it is impor- ; tant for Council to recognize that it is critical to development of that 1 3 1 1 S t 4/19/83 3 128 area to pursue its goals to negotiate with the County. He emphasized that there is very little fat in the project to accomplish the projects that need to be done. Mr. Henson explained that the arterial streets that need to be improved will cost $12,800,000. He noted that the East 44 and Hilltop area will add possibly 15,000 people to the population which will bring tremendous traffic loads. He said the project includes $1 ,452,000 to correct local street deficiencies. Mr. Henson pointed out that $1 ,342,000 will be used 'r to resolve water, storm & sanitary sewer problems, and that $350,000 is to be used to solve problems of drainage which would eliminate the need for the Mosquito Abatement District in that area. Also included in project improvements, Mr. Henson stated, are neighborhood improvements, housing rehabilitation and relocation, for a total of $16 ,809,000 in project improvements. He noted that with an inflation factor over 10 years , the total would be $23,500,000. In regard to project financing, Mr. Henson explained that the project would provide tax increments over a period of 20 years, of about $55,000,000; project improvements will cost $23,500,000, low & moderate housing will be 20% of the tax increment ($11 ,000,000) , and $20,500,000 for financing costs, for total expenses equal to the expected tax increment revenues. Mr. Henson emphasized the importance of this project on the City of Redding and Shasta County. He said it would create close to 5,000 person years of P construction jobs and 18,000 person years of general economy jobs. Mr. Henson pointed out that it will bring $401 ,000,000 of new construction in the area and a total of $1 ,222,000,000 into the economy. He urged that the City continue to work with the County to try to resolve these problems. In response to an inquiry from Councilman Kirkpatrick regarding the pro- ject' s effect on schools, Mr. Henson replied that the schools receive 36% of taxes generated from within the area. Mr. Henson advised that the projected "tax loss" to the schools would be 36% of the projected tax increment of $55,000,000, which amounts to approximately $20,000,000. He said that if the project is implemented, this "tax loss" will be paid to the schools by the State of California. This is $20,000,000 from the State to support our local economy that would not be received by the community without the project. Mr. Kirkpatrick noted that Council has received information that the Bollinger project in the redevelopment area, has been put on hold. Mr. Henson concurred and advised that staff has received information from John Sharrah that they cannot pay the Redevelopment Agency' s share of an assess- ment district to pay for the Canby overcrossing. ADJOURNMENT There being no further business, at the hour of 4:35 P.M. , Mayor Gard declared the meeting adjourned. APPROVED: )71)5e(ALQ.ACk_ a_f2f124/\-51.ACCayor ATTEST: ryC i k 4/19/83