Loading...
HomeMy WebLinkAboutReso 2007-069 - Shastec Redevelopment Project e RESOLUTION NO. 2007 - 69 e A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE USE OF TAX INCREMENT FUNDS TO CONSTRUCT THE STILLWATER BUSINESS PARK INFRASTRUCTURE PROJECT WITHIN THE SHASTEC REDEVELOPMENT PROJECT AREA. WHEREAS, the Redding Redevelopment Agency desires to contribute tax increment funds from the SHASTEC Redevelopment Project Area for the construction of certain public improvements associated with the Stillwater Business Park; and WHEREAS, Section 33445 ofthe Health and Safety Code states that before the Agency can pay all or part of the costs of any public improvement, the legislative body must first determine that the improvement will benefit the Project Area 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 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 the Proposed Use of Redevelopment Funds, 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 improvement is of primary benefit to the SHASTEC Redevelopment Project Area. 3. There are no other reasonable means of financing the public improvement 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 regular meeting of the Redding City Council on the 15th day of May, 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 ~~ DICK DICKERSON, Mayor low" t'", ATTEST: v...J <. '~'''' \ :s \ ~ .,. '" .., .: \ " APPROVED AS TO FORM: ~ .5 , 0'\ -0 ..~ ,,'" \~'"' \ .' ~"l , ' ~. CONNIE 81 e e DRAFT ANALYSIS OF THE PROPOSED USE OF REDEVELOPMENT FUNDS STILL WATER BUSINESS PARK INFRASTRUCTURE PROJECT Redevelopment funds from the SHASTEC Redevelopment Project Area have been budgeted to assist the City of Redding with the development ofthe infrastructure for the Stillwater Business Park (Business Park) located in the SHASTEC Redevelopment Project Area. The SHASTEC funding is proposed to be utilized for construction ofthe "backbone" infrastructure necessary for the development of the Business Park, environmental mitigation activities related to its development, and the improvement of several existing SHASTEC roadways serving as primary access routes to the Business Park. The Business Park will be developed on approximately 700 acres ofland located within the SHASTEC Project Area. The land will be subdivided into approximately 1610ts ranging in size from approximately 5 acres to approximately 92 acres. The project will provide "ready-to-go" sites for medium to large industrial users. The backbone infrastructure necessary for development of the Business Park includes the extension of Rancho Road through the length of the Business Park to connect with Fig Tree Lane and the construction of two new bridge crossings of Stillwater Creek, one at the northern entrance to the Business Park and one at the southerly end. City utilities will also be extended to allow development of the Business Park, but will not be funded with SHASTEC funding. The construction of the Business Park "backbone" infrastructure will be undertaken in phases. The initial construction phase will provide the basic infrastructure necessary to allow initial development to occur within the Business Park. The public improvements to be initially developed include the extension of Rancho Road from Old Oregon Trail eastward as a 48-foot asphalt concrete interim roadway to include two 12-foot travel lanes, one 12-foot left-turn lane, and two 6-foot shoulders, and construction ofthe northerly cast in place box girder bridge crossing over Stillwater Creek. The paved section of Rancho Road will end in a cul-de-sac approximately 700 feet southeast of its current terminus. Water, wastewater, and electrical services will also be extended to the project site. Construction of this phase will be initiated in 2007. Subsequent phases will be constructed as funding becomes available. Approximately 277 acres of the Business Park project site have been designated as open space. Of that acreage, approximately 211 acres will be protected under a permanent open space conservation easement. Environmental protection and enhancement activities will be undertaken which include creation and preservation of wetlands and restoration of riparian habitat. Post and cable fencing will be constructed adjacent to the open space conservation easement to prevent vehicular access. Bicycle and pedestrian paths will be constructed along the open space areas of the Business Park to provide additional recreational and transportation options within and through the Business Park and the Project Area. As part of the Business Park project, several existing SHASTEC roadways serving as primary access routes to the Business Park will be improved. Rancho Road will be widened from Airport Road to Old Oregon Trail, and Fig Tree Lane will be widened from the future intersection with Rancho Road west to Airport Road. The widening and extension of Rancho Road and the widening of Fig Tree Lane will require right-of-way acquisition. Relocation of some existing uses is also anticipated as part ofthe land acquisition process. Page 1 of 3 e e California Health and Safety Code Section 33445 authorizes agencies to pay all or a part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement that is publicly owned 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 of funds 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 development of the Business Park with its associated public improvements meet the definition of Redevelopment and are the proposed public improvements of primary benefit to the SHASTEC Redevelopment Project? Sections 33020 and 33021 define Redevelopment as the planning, development, replanning, redesign, clearance, alteration, improvement, modernization, reconstruction or rehabilitation, or any combination of these, of all or a part of a survey area. The definition includes provisions for those residential, commercial, industrial, public, or other structures or spaces that are deemed essential to the redevelopment and rehabilitation of the redevelopment project area. The definition of redevelopment allows for the development of previously vacant sites. The Business Park project with its associated public improvements meets the above definition of redevelopment by providing improvements to the circulation system serving the Project Area, and, secondarily, through the creation of economic opportunities in the form of jobs to be made available to persons in the community, including the residents of the Project Area. Improvements to recreational facilities will provide an improved quality oflife to Proj ect Area residents and to the community residents who frequent the Business Park. Redevelopment funding will be applied exclusively to the public improvements associated with the Business Park. The public improvements include the widening of Fig Tree Lane within to the Project Area, the widening and extension of Rancho Road and construction of two bridges within the Project Area, the extension of a portion of Rancho Road immediately adjacent to the Project Area, environmental enhancement activities and public recreational improvements along the open space areas within the Project Area. The public improvements will act as a catalyst for private investment in the Business Park, will stimulate property values, and increase the economic viability of the Project Area. The public improvements will be located within or immediately adjacent to the SHASTEC Redevelopment Project Area. Thus, the Business Park infrastructure improvements meet the definition of redevelopment and will be of primary benefit to the SHASTEC Project Area. Page 2 of 3 e e Are there any other reasonable means of financing the proposed improvements available to the community? The estimated cost of the public infrastructure for the Business Park at ultimate buildout is $70 million. To date, the City of Redding has received $3.4 million in Federal funding for the project. Proceeds from the General Fund in the amount of $12.1 million, which includes $10.8 million from the sale of lease revenue bonds, have been committed to the project. City of Redding wastewater and water utilities will contribute approximately $5.6 million for wastewater and water improvements. This leaves a shortfall of$48.9 million necessary to complete the ultimate infrastructure for the Business Park. Of the $70 million, $29.2 million is needed for the first phase of development. Utilizing the above-noted available funds still leaves an estimated shortfall of $8.1 million. The Agency is contributing $10 million in bond' proceeds, of which an estimated $8.1 million will be allocated to the first phase and the balance to the ultimate buildout. The bond will be repaid with future tax increment revenue generated in the SHASTEC Project Area. The City intends to continue to seek grant funding for the project, and is currently preparing an application for submittal to the Economic Development Administration for funding for the southern bridge. However, it is not known at this time to what extent this and future funding requests will be successful. Currently, there is no other reasonable means of fmancing the shortfall in the initial phase. Thus, redevelopment funds are essential to development of the project. Without these funds, neither the initial construction phase of the Business Park nor subsequent phases can go forward. Will the proposed activity assist in the elimination of one or more blighting conditions within the SHASTEC Project Area? Is the project consistent with the Implementation Plan adopted for the Project Area? The proposed activity will assist in the elimination of several existing blight conditions in the SHASTEC Project Area. The Preliminary Report prepared in 2006 for the SHASTEC Redevelopment Plan Amendment (Preliminary Report) identified depreciated or stagnant property values as an economic blighting condition. The Project Area is also negatively impacted by current public infrastructure deficiencies, particularly in the circulation system The development of the basic infrastructure necessary to serve the Business Park will facilitate the expansion and development of new businesses in the Proj ect Area. New businesses will create new jobs and preserve and upgrade existingjobs for not only the residents of the Project Area, but throughout the community. An increased level of private development will enhance the assessed values of the properties within the Project Area providing more public resources for additional public improvements and programs. The project will eliminate public infrastructure deficiencies that hinder private development and will act as a catalyst to stimulate additional private investment and attract businesses that result in a growth in wages, earnings, and per capital income, thereby, providing economic stability and enhancing the quality of life within the Project Area. The proposed use ofredevelopment funds is consistent with the Project Area's Implementation Plan. The 2006-2011 Implementation Plan for the SHASTEC Project Area was prepared and adopted by the Redding, Anderson, and Shasta County Redevelopment Agencies pursuant to California Redevelopment Law, Health and Safety Code Section 33490. The Implementation Plan specifically describes redevelopment involvement in Business Park infrastructure improvements, including road improvements to and through the Business Park from both the northern and southern ends of the Park, construction of bridges, environmental mitigation, and right-of-way acquisition as a contribution to blight removal. Page 3 of 3