HomeMy WebLinkAboutReso 2007-009 - Hilltop Dr Streetscape
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RESOLUTION NO. 2007 - 09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE
USE OF TAX INCREMENT FUNDS TO CONSTRUCT THE HILLTOP DRIVE STREETS CAPE
PROJECT WITHIN THE CANBY-HILLTOP-CYPRESS PROJECT.
WHEREAS, the Redding Redevelopment Agency desires to contribute tax increment funds from the
Canby-Hilltop-Cypress Redevelopment Project for the construction of streetscape improvements on Hilltop Drive,
between Cypress Avenue and State Route 44; and
WHEREAS, Section 33445 of the Health and Safety Code states that before the Agency can pay all or
part of the value of the land for and the cost of the installation and construction of any public improvement, the
legislative body must first determine that the improvement will benefit the Project from which the funds are derived,
that there are no other reasonable means of financing the improvement, and that the project will assist in the
elimination of blight;
WHEREAS, Section 33678 of the Health and Safety Code states that use of tax increment funds for
public improvements must meet the definition and purpose of Redevelopment as prescribed in Sections 33020 and
33021 and primarily benefit the project area;
WHEREAS, the City Council is the legislative body for the City of Redding;
NOW, THEREFORE, the City Council FINDS, RESOLVES, and ORDERS as follows:
1. The Analysis of Findings, attached and incorporated herein, are hereby adopted in satisfaction
of the requirements set forth in Health and Safety Code Sections 33445 and 33678.
2. The public improvements meet the definition and purpose of Redevelopment and are of
primary benefit to the Canby-Hill top-Cypress Redevelopment Project Area.
3. There are no other reasonable means of financing the Agency's contribution to the
improvements available to the community.
4. The payment of funds for the public improvement will assist in the elimination of one or more
blighting conditions in the Project Area and is consistent with the adopted implementation
plan.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a special meeting of
the Redding City Council on the 22nd day of January, 2007, and was duly adopted at said meeting by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
Bosetti, Jones, Murray, Stegall, and Dickerson
None
None
None
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,"CK DICKERSON, Mayor
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RICHARD A. DUVERNAY, Ci
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APPROVED AS TO FORM:
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ANALYSIS OF FINDINGS
Hilltop Drive Streetscape Project
The Redding Redevelopment Agency (Agency) wishes to provide up to $2 million in tax increment funds
to help construct improvements, including medians, sidewalks, landscape, and decorative lights, along
Hilltop Drive between Cypress Avenue and State Route 44, as part of the Hilltop Drive Streetscape Project
(Proj ect). The Hilltop Hotel Business Improvement District (HHBID) plans to contribute about $1.5 million
toward the Proj ect, and the City of Redding Electric Utility (REU) will be undergrounding the overhead lines
at a cost to REU of about $2 million. Total Project cost is anticipated to be $5.5 million. Hilltop Drive lies
within the Canby-Hilltop-Cypress (CHC) Redevelopment Project Area.
California Health and Safety Code Section 33445 authorizes agencies to undertake redevelopment activities
either inside or outside the project area, provided the legislative body determines all of the following:
1) That the improvements are of benefit to the project area from which the funds are derived or to
the immediate neighborhood in which the project is located, regardless of whether the
improvements are within another project area;
2) That no other reasonable means of financing the buildings, facilities, structures, or other
improvements are available to the community; and
3) That the payment offunds for the acquisition of land or the cost of buildings, facilities, structures,
or other improvements will assist in the elimination of one or more blighting conditions inside the
project area or provide housing for low- or moderate-income persons, and is consistent with an
adopted implementation plan.
Section 33678 of the California Health and Safety Code adds the requirement that if tax increment money
is used, the project must meet the definition and purpose of Redevelopment as prescribed in Sections 33020
and 33021 and primarily benefit the project area from which the tax increment money is derived. These
issues are discussed below by topic:
Does the Hilltop Drive Streetscape Project meet the definition of Redevelopment and are the proposed
public improvements of primary benefit to the CHC Redevelopment Project Area?
Sections 33020 and 33021 define Redevelopment as the development, redesign, reconstruction,
rehabilitation, or any combination of these, in all or part of a proj ect area, including open-space types of uses
such as streets and other public grounds. The section of Hilltop Drive to be improved contains several of
the hotels and motels in Redding. It also contains numerous restaurants and a large segment of retail
shopping. The street is in need of redesign and rehabilitation to become more inviting to visitors and
customers as well as a safer and more pedestrian friendly travel way between the hotels and the retail services.
The Project meets the definition of redevelopment as described in Sections 33020 and 33021 in that the
corridor will be redesigned with landscape medians to reduce unsafe left-turn movements. and encourage
right-in and right-out only access to businesses and services. Other aspects include the removal of overhead
lines, redesigned walkways, and lighted crosswalks.
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The purpose ofthe Project is to revitalize the Hilltop Drive area that in turn will attract new businesses and
ensure the retention of existing services and businesses at a level that is competitive with new development
occurring to the north and to the south. The hotel and motel owners along Hilltop Drive, concerned that the
area was in desperate need of both public and private capital improvements, formed the HHBID with the goal
to help fund streetscape and median improvements along Hilltop Drive. The Committee that helped formed
the HHBID concluded that physical improvements to the corridor would launch an increase in business
activity. The resultant primary benefit to the CHC Redevelopment Project Area will be a beautification of
Hilltop Drive; safer pedestrian walkways; economic vitality of the service, retail, and hospitality businesses
located in the area; and the retention of jobs and possibly the creation of new jobs.
Are there any other reasonable means of financing the proposed improvements available to the
community?
As previously noted, the City of Redding Electric Utility will be funding the undergrounding of utilities along
this segment of Hilltop Drive at an estimated cost of $2 million. The HHBID, alone, cannot fund
construction of the remaining streetscape improvements expected to cost about $3.5 million. The HHBID
has a five-year life. Its anticipated annual revenues are about $300,000 for a total contribution to the Project
of $1.5 million. This leaves a $2 million funding gap. There are no funds available for the Project at this
time from Traffic Impact Fees or from the State Transportation Improvement Program (STIP). Furthermore,
STIP does not recognize the streetscape improvements as an eligible project. There are currently no
reasonable means of financing the balance ofthe proj ect other than with redevelopment funds generated from
the CHC Project Area.
Will the proposed activity assist in the elimination of one or more blighting conditions within the CHC
Project Area? Is the project consistent with the Implementation Plan adopted for the Project Area?
Both the original CHC Redevelopment Plan adopted in 1981 and the amended Plan adopted in 1990 identify
the need for street improvements within the Project Area. One of the categories characterizing conditions
of blight present within the CHC Project Area is inadequate and/or poor quality public improvements,
including public infrastructure and utilities. The streetscape improvements, including the undergrounding
of the utility lines, will help remove contributors to blight by enhancing the area, improving pedestrian and
vehicle safety, and encouraging reinvestment of private funds into businesses benefitting from the Project.
The CHC Five-Year Implementation Plan (Implementation Plan) adopted by the Agency on November 15,
2004, identifies streetscape and beautification projects for major retail corridors that are in danger of both
physical and economic blight, or are experiencing unsafe conditions caused by excessive traffic volumes at
intersections operating below level of service "C." Hilltop Drive between State Route 44 and Cypress
Avenue has been identified as one of these corridors. It is described as an area comprised of retail and
service-oriented businesses threatened by new retail development in outlying areas. The Implementation
Plan lists the streets cape project for Hilltop Drive as a contribution to blight removal within the CHC Project
Area.
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