HomeMy WebLinkAboutReso 2011-026 - Market St Redevelopment
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RESOLUTION NO. 2011 - 26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE USE OF REDEVELOPMENT FUNDS DERIVED FROM
SURPLUS LAND SALE PROCEEDS TO ACQUIRE PROPERTY WITHIN
THE MARKET STREET REDEVELOPMENT PROJECT AREA FOR A NEW
SHASTA COUNTY COURTHOUSE
WHEREAS, the Redding Redevelopment Agency (Agency) desires to contribute
redevelopment funds derived from land sale proceeds to assist with the acquisition of property within
the Market Street Project Area (Project Area) for the purpose of facilitating the development of a new
Shasta County Courthouse facility; and
WHEREAS, Section 33445(a) of the California Health and Safety Code states thattheAgency
may pay all, or part of, the value of land for and the cost of construction of any building, facility,
structure, or other improvement that is publicly owned and is located inside, or contiguous to, the
project area if the legislative body determines that the acquisition of land, or the installation or
construction ofthe buildings, facilities, structures, or other improvements that are publicly owned, are
of benefit to the project area by helping to eliminate blight within the project area or providing housing
for low- or moderate-income persons; that no other reasonable means of financing the acquisition of
the land, or installation or construction of the buildings, facilities, structures, or other improvements
that are publicly owned, are available to the community; and that the payment of funds for the
acquisition of land or the cost of buildings, facilities, structures, or other improvements that are
publicly owned is consistent with an adopted implementation plan; and
WHEREAS, the City Council is the legislative body for the City of Redding.
NOW, THEREFORE, the City Council FINDS, RESOLVES, and ORDERS as follows:
The Analysis of Proposed Use of Redevelopment Funds, attached and incorporated herein, is
hereby adopted in satisfaction ofthe following requirements set forth in California Health and Safety
Code Section 33445(a):
1. The acquisition of the property and subsequent development of the new Courthouse
facility is of benefit to the Project Area by helping to eliminate blight within the Market Street
Redevelopment Project Area.
2. There are no other reasonable means of financing the proposed activity available to the
community.
3. The proposed use of redevelopment funds IS consistent with the adopted
Implementation Plan.
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I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular
meeting of the Redding City Council on thelSth day of March, 2011, and was duly adopted at said
meeting by the fol~owing vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
ATTEST:
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Bosetti, Dickerson, Jones, Sullivan, and McArthur
None
None
None
APPROVED AS TO FORM:
RIC~~~Attorney
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ANALYSIS OF THE PROPOSED USE OF REDEVELOPMENT FUNDS
Acquisition of Property to Facilitate
the Development of a New Courthouse Facility
The Redding Redevelopment Agency (Agency) is proposing to provide up to $1,000,000 in
redevelopment funds derived from its property sale proceeds to assist the Administrative Office
of the Courts ("AOC") to acquire property necessary for the development of a new Shasta
County Courthouse complex. The AOC is the staff agency to the Judicial Council of California,
.the policymaking body of the state court system. The proposed site for the new Courthouse is
located within the Market Street Redevelopment Project Area and consists of eleven parcels
totaling approximately 1.94 acres in downtown Redding, bounded by Oregon, Butte, Yuba, and
Court Streets. Six of the parcels are owned by the County of Shasta, and five of the parcels are
owned by private parties. The attached Exhibit 1 depicts the site location.
Funding for the development of the new Courthouse facility was included within Senate Bill
1407 component of the State of California Fiscal Year 2009-2010 Budget Act. While the
replacement of the existing Shasta County Courthouse w.as ranked as an "immediate need"
within the Judicial Council of California's Trial Court Capital Outlay Plan, for the fruition of the
project to take place, multiple approvals by a number of State oversight bodies must occur. In
late 2009, the AOC requested that the Agency assist in the acquisition of the five privately-
owned parcels referenced above that are necessary for the development of the new Courthouse at
the chosen downtown site. The Agency agreed to assist the AOC purchase and assemble the
identified parcels, and executed a Memorandum of Understanding (MOU) with the AOC to that
effect in September 2010. TheMOU anticipated that upon the Agency reaching agreement with
each individual property owner, the Agency and owners would execute purchase and sale
agreements which would then be assigned to the AOC prior to expenditure of funds and transfer
of title. Under the MOU, the AOC would pay for all costs related to acquisition of the parcels,
subject to the AOC complying with its formal approval process through the State Public Works
Board (SPWB) for this type of project.
To date, the Agency has successfully entered into purchase and sale agreements for three of the
five private parcels. Formal offers to purchase based upon current appraised market value were
made to the final two property owners by the Ag~ncy and were rejected. In order to acquire the
remaining parcels, the Agency formally adopted Resolutions of Necessity at a special meeting on
February 28,2011. This action initiates the acquisition of the remaining two parcels through the
Agency's power of eminent domain. As authorized by this action, the Agency's General Counsel
will now commence eminent domain litigation and seek an order of possession for the parcels
through a court action. Concurrently with the filing of the motion for order of possession with
the Court, the Agency must deposit the appraised amount with the State Treasurer. This amount,
including court costs, is anticipated to be $1,000,000.
California Health and Safety Code Section 33445(a) authorizes agencies to pay all or part of the
value of land for and the cost of construction of any building, facility, structure or other
improvement that is publicly owned and is located inside or contiguous to the project area
provided the legislative body determines all of the following:
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1) That the acquisition of land or the installation or construction of the buildings,
facilities, structures, or other improvements that are publicly owned are of benefit to
the project area by helping to eliminate blight within the project area or providing
housing for low- or moderate-income persons;
2) That no other reasonable means of financing the acquisition of the land or installation
or construction of the buildings, facilities, structures, or other improvements that are
publicly owned, 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 that are publicly owned is consistent with an adopted
implementation plan.
These issues are discussed below by topic.
Will the acquisition of the land and the subsequent construction of the new Courthouse help
in the elimination of blighting conditions within the Market Street Project Area?
The existing Shasta County Courthouse, located in the heart of the Market Street Project at 1500
Court Street, has reached a point of economic and functional obsolescence. The existing facility
has severe security problems, is overcrowded, and has many physical deficiencies, such as: (1)
lack of secure elevators for judges to travel between floors; (2) shared jury deliberation
restrooms; (3) small and cramped hallways; (4) lack of secure parking and chamber access for
judges; (5) lack of secure holding areas for inmates requiring many to wait in existing jury boxes;
(6) attorneys and clients using public hallways to discuss confidential matters; (7) size of existing
courtrooms to handle volume of cases being heard; (8) lack of wheelchair accessibility; and (9)
insufficient number of elevators servicing the three-story building and basement. As stated
earlier, the development of a new Shasta County Courthouse was ranked as an "immediate need"
by the State Judicial Council due to existing safety, structural, and operational deficiencies
exhibited by the existing complex. On a scale of 1-80, with 80 representing the worst conditions
possible, the existing complex scored 76 during the state evaluation process, and is considered to
be one of the most inferior courthouses currently operating in California. The proposed new
Courthouse will accommodate 14 courtrooms and all ancillary services at the proposed location.
Security for the public, courthouse employees, law enforcement, and judicial staff will be greatly
improved. Operational costs will be lowered due to the consolidation of several satellite court
functions at one location. Operational efficiencies will be increased for the same reason.
The construction of a new Courthouse within the downtown portion of the Market Street Project
Area will also assist in the elimination of blight beyond the remediation of the blight associated
with the existing Courthouse structure. The court system provides for a significant number of
jobs both within the court facility itself, and within the large number of businesses associated
with the legal industry. Development of a new Courthouse on the preferred site will allow these
to continue to contribute to the Market Street Redevelopment Project Area tax base, thereby
supporting the redevelopment of the entire Reddingdowntown area.
Finally, reuse of the existing courthouse structure following the completion of construction of the
new Courthouse is planned. While inadequate as a modem secure judicial facility, the existing
courthouse will be able to provide necessary office space for other County entities needing to
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locate or expand within the downtown area. Creative reuse of this structure will enhance the
economic stability of the area, as well as act as an incentive for additional investment of private
resources in the surrounding area.
Are there any other reasonable means of financing the proposed property acquisition
available to the community?
As noted above, the MOD with the AOC provides for the AOC to reimburse the Agency for all
costs associated with the acquisition of the required parcels, upon final approval by the SPWB.
According to the AOC, it does not have authority to release the state funds reserved for the
project until the SPWB acts. The SPWB will formally review the project only after site control
for all of the necessary parcels has been secured through either a purchase and sale agreement or
through an order of possession issued by court action. The use of redevelopment resources for
the required deposit of probable compensation associated with the legal filing seeking the
issuance of an order of possession by the courts is required in order to move forward with the
eminent domain action. No other source of public funding has been identified as available for
this purpose.
Is the project consistent with the Implementation Plan adopted for the Project Area?
The use of Agency financing to assist with the development of a new Court facility is listed as a
potential Agency activity within the current Five-Year Implementation Plan for the Market Street
Proj ect Area adopted by the Agency on November 15, 2010.
The proposed activity supports the following Implementation Plan goals and objectives:
The elimination of blighting influences and the correction of environmental
deficiencies in the Project Area, including, among others: small and irregular lots;
faulty exterior spacing; deteriorated, obsolete, and aged building types; mixed
character of buildings; incompatible and uneconomic land uses; and inadequate or
deteriorated public improvements, facilities, and utilities;
The demolition or removal of certain buildings and improvements and the
assembly of land into parcels suitable for modem, integrated redevelopment with
improved pedestrian and vehicular circulation in the Project Area; and
Improve the access of citizens of the Project Area to government services and
programs by supporting the continued development of a single location for these
activities.
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