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HomeMy WebLinkAboutReso 2007-042 - Hilltop Widening !l e e RESOLUTION NO. 2007 - 42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE USE OF TAX INCREMENT FUNDS TO CONSTRUCT THE HILLTOP WIDENING OVER STATE ROUTE 44 PROJECT WITHIN THE CANBY- HILL TOP-CYPRESS PROJECT. WHEREAS, the Redding Redevelopment Agency desires to contribute tax increment funds from the Canby-Hilltop-Cypress Redevelopment Project to widen the Hilltop Drive crossing over State Route 44 to six lanes (five travel lanes and a turn lane) from the intersection of the eastbound State Route 44 off ramp to the intersection of Dana Drive and to construct sidewalk improvements along the west side of the widening; 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 the 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-Hilltop-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 ofthe Redding City Council on the 19th day of March, 2007, and was duly adopted at said meeting by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBER: COUNCIL MEMBER: COUNCIL MEMBER: COUNCIL MEMBER: Jones, Murray, Stegall, and Dickerson None Bosetti None c2aL [rLe-- DICK DICKERSON, Mayor '. -~ '.... ~~. ".. ,-" ATT~5rrj"...>-~:\\; \',. -,~ ........, ... "-=..'~ t ..... ~ . ;"" i ,i-.. ~4~ RICHARD A. DUVERNAY, City A mey g ~ 9J APPROVED AS TO FORM: , . ~.-- ...- ""r '\ . ,--.. " e e ANAL YSIS OF FINDINGS Hilltop Drive Widening Over State Route 44 Project The Redding Redevelopment Agency (Agency) wishes to utilize tax increment funds in the amount of $1,461,000 to help construct the Hilltop Drive Widening over State Route 44 Project (Project). The Project, which lies within the Canby-Hilltop-Cypress (CHe) Redevelopment Project Area, consists of widening the overcrossing from four lanes to six lanes (five travel lanes and a left-hand turn lane) from the intersection of the eastbound State Route (SR) 44 off ramp to the intersection of Dana Drive and to construct sidewalk improvements along the west side of the widening. The engineer's estimate for the Project is $4,027,000. Construction of the improvements is planned to begin this summer. The widening has been identified in the Agency's budget as a necessary capital project since fiscal year 1993-94. Various reasons have delayed the Proj ect, including Caltrans' decision to not allow an on-ramp to State Route 44 West until the bridge crossing over the Sacramento River is widened. The widening of that bridge is expected to begin in 2008 and construction of the on-ramp to State Route 44 West is anticipated to be part of that project. 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 Widening over State Route 44 Project meet the definition of Redevelopment and are the proposed public improvements of primary benefit to the eHe 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 project area, including the provision for open- space types of uses such as streets and other public grounds. The Project meets the definition of redevelopment as described in Sections 33020 and 33021 in that the widening is a redesign and rehabilitation of an existing overcrossing that serves the City of Redding's primary retail region located within the CHC Redevelopment Project Area. The widening is needed to correct operational deficiencies as traffic volumes increase with the primary goals being to (1) relieve congestion by providing a free right -turn lane from the eastbound Highway 44 off ramp onto Hilltop Drive and continuing to Dana Drive and (2) create a left-turn Page 1 of 2 ,- e e lane for a future on-ramp to SR 44 West. It is anticipated that the on-ramp will be constructed as part of the widening by Caltrans of the SR 44 West bridge crossing the Sacramento River (Dana-to-Downtown Proj ect), forecasted to begin in 2008. Widening of the Hilltop overcrossing also includes sidewalk improvements along the west side of the street. The Proj ect is of primary benefit to the CHC Redevelopment Proj ect Area. The proposed improvements will provide improved access to the west side of Redding, including Downtown, from the Hilltop Drive corridor and, in concert with Caltrans' Dana-to-Downtown Project, provide a second access to Downtown from Dana Drive. The Proj ect will help reduce traffic congestion and traffic conflicts between through traffic and traffic accessing the hotel, retail, business, and restaurant establishments in the Project Area, thereby making it easier for people to reach their destinations. Sidewalk improvements on the west side of the widening will also provide a safer pedestrian route. The improvements will result in safer, less congested traffic flows through the area and lessen the negative impact that too much traffic can have on businesses. Are there any other reasonable means of financing the proposed improvements available to the community? The engineer's estimate for the Project is $4,017,000. The proposal is for the City to contribute $2,556,000 from the Traffic hnpact Fees (TIP) Fund and the Agency to contribute $1,461,000 in tax increment revenue from the CHC Redevelopment Project Area. The City of Redding Capital hnprovement Plan (CIP) 2005-06 to 2010-11 identifies a need for $47,151,000 in TIP funds. Currently, the annual receipt of TIP is about $4.5 million, which equates to about $27 million for the six-year period. Recent bids on capital projects have been higher than the engineer's estimate in the CIP, triggering an increase in the allocation of the TIP proceeds. The original TIP allocation for this Project has also been increased substantially due to the rise in material costs and additional State requirements. Further TIP increases would impact the ability to complete other projects listed in the CIP. Another possible source offunds is the City's General Fund which is used for the operations of the City, including costs relating to Police and Fire Protection. The small amount of General Fund money that is available for capital projects has already been committed to other projects. State funds are not available as they will be used to construct the on-ramp from Hilltop/Dana Drives to SR 44 West and for construction of the overcrossing of the Sacramento River going into Downtown. There are currently no reasonable means of financing the balance of the 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 eHe 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. The principal objective stated in the 1990 Amended Plan is to improve the CHC Project Area physically and environmentally by correcting the deficiencies in the Area's infrastructure; more specifically, by improving pedestrian, bicycle, vehicular and public transportation circulation. The Report to the City Council, on which the 1990 Amended Plan is based, discusses the blighting influence caused by critical congestion approaching grid-lock and identifies the Widening of Hilltop Drive Overcrossing of Highway 44 as a blight-reducing public works improvement in the Project Area. The Project will assist in the elimination of Project Area blight conditions through the improvement of traffic flow and capacity along the Hilltop Drive and Dana Drive corridors. Providing access to SR 44 west from both Hilltop Drive and Dana Drive will help reduce traffic congestion along both corridors that hinders access to hotel, retail, business, and restaurant establishments in the area. The Proj ect will also provide an alternative to vehicle transportation by constructing a pedestrian walkway along the west side of the widening. The CHC Five-Year hnplementation Plan (hnplementation Plan) adopted by the Agency on November 15, 2004, specifically identifies this Project as a contribution to blight removal by providing needed improvements to an inadequate public infrastructure serving the Project Area. Page 2 of 2