HomeMy WebLinkAboutReso 2011-037 - Market St Redevelopment Project Area
e
e
RESOLUTION NO. 2011 - 37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE USE OFT AX INCREMENT FUNDS TO CONSTRUCT PUBLIC
IMPROVEMENTS WITHIN THE MARKET STREET REDEVELOPMENT
PROJECT AREA
WHEREAS, the Redding Redevelopment Agency (Agency) desires to utilize tax increment funds
from the Market Street Redevelopment Project Area to design and construct public improvements consisting
of curb, gutter, and sidewalk and the extension ofthe sanitary sewer on Wests ide Road in the Market Street
Redevelopment Project Area (Project Area); and
WHEREAS, Section 33445(a) ofthe California Health and Safety Code states that the Agency 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 ofland, 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; 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 ofland or the cost of buildings,
facilities, structures, or other improvements that are publicly owned is consistent with an adopted
implementation plan; and
WHEREAS, Section 33678 of the California Health and Safety Code states that the use of tax
increment funds for public improvements must primarily benefit the project area; and
WHEREAS, Section 33421.1 ofthe California Health and Safety Code states that the Agency may
not use its authority to provide streets, sidewalks, utilities, or other improvements which an owner or
operator of the site would otherwise be obliged to provide without the prior consent of the legislative body;
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:
1. The Analysis of Proposed Use of Redevelopment Funds, attached and incorporated herein,
are hereby adopted in satisfaction ofthe requirements set forth in California Health and Safety Code Sections
33445(a), 33678 and 33421.1.
2. The construction ofthe public improvements is of benefit to the Project Area by helping to
eliminate blight within the Project Area.
3.
The public improvements are of primary benefit to the Project Area.
~
'""""-
-.......
1
Lv
~
e
e
4. There are no other reasonable means of financing the public improvements available to the
community.
5. The payment of funds for the cost of the public improvements is consistent with the adopted
Implementation Plan.
6. The provision of the proposed public improvements is necessary to effectuate the purposes
ofthe Market Street Redevelopment Plan.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a special meeting
of the Redding City Council on the 21 st day of March, 2011, and was duly adopted at said meeting by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBER:
. COUNCIL MEMBER:
COUNCIL MEMBER:
COUNCIL MEMBER:
Bosetti, Dickerson, Jones, Sullivan, and McArthur
None
None
None
"-
ATTEST:
APPROVED AS TO FORM:
RICHARD A. DUVERNAY, City Attorney
':':.',
C J'r
....;, , I ;.j
" '\' \',' -; .
~\" '!~ ;'}'>/1')'; L
\~/~g.':':,,~~, --
P AMBL'A MIZE, City,' . Jerk
, . ."....1 ;-.: -
1'''' :-~. .l,,~>~.../ /"0
\ ", ~.
-'.. '~<::~'1:" ,.... ~^,""", '..
;.-.. \.......
~L-
By: , L-.....:
~.~
e
e
ANALYSIS OF THE PROPOSED USE OF REDEVELOPMENT FUNDS
Wests ide Road Public Improvements
The Redding Redevelopment Agency (Agency) is proposing to utilize up to $150,000 in
redevelopment funds to design and construct public infrastructure improvements consisting of 300
lineal feet of curb, gutter, and sidewalk improvements and the extension of sewer across the frontage
of property located at 5660 and 5680 Westside Road (the "Public Improvements"). The project is
located within the Market Street Redevelopment Project Area. The attached Exhibit 1 depicts the
location of the proposed Public Improvement Project.
A local company, Weaver Lumber, currently occupies 5660 Wests ide Road. Mr. Brent Weaver is
the president of Weaver Lumber. The adjoining parcel to the south, 5680 Westside Road, is owned
by Mr. Weaver and his wife and is currently not utilized except for storage. Mr. Weaver is proposing
to construct a new 6,500-square- foot building at 5680 Westside Road and renovate an existing
structure on the same property in order to accommodate Technisoil, LLC (Technisoil), who will
lease the property upon completion of the work. Technisoil, a local start-up company, manufactures
an environmentally friendly soil solidification paving system. Technisoil anticipates that over the
next 18 - 24 months, it will employ up to 30 people in its manufacturing plant at this location. In
addition to the construction of the new building and the renovation of the existing structure at
2680 Westside Road, Mr. Weaver will be installing new facades on a number of the lumber storage
units that face Wests ide Road on the Weaver Lumber parcel; installing irrigated landscaping across
the frontages of both parcels; removing all of the existing dilapidated fence and gates on both
parcels; installing new decorative wrought iron fencing and entrance gates; and installing connecting
driveway entrances on both parcels. The private property improvements to be undertaken by
Mr. Weaver will not utilize any redevelopment financing. It is proposed that redevelopment funds
be used to design and construct only the Public Improvements as described above.
As proposed, the Agency will utilize up to $150,000 of its tax increment revenues from the Market
Street Project toward the cost of the described Public Improvements. A portion of the proposed
Public Improvements are required by the City of Redding (City) as part of the permitting process for
the private improvements proposed by Mr. Weaver on the 5680 Westside Road parcel. These
include the curb, gutter, and sidewalk improvements for 5680 Westside Road only. The sewer
extension and the remaining curb, gutter, and sidewalk improvements are not triggered by the
permitting process.
California Health and Safety ( H & S) 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:
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;
Page 1 of 4
e
e
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.
Additionally, H & S Code Section 33421.1 requires the prior consent ofthe legislative body in order
for the Agency to provide streets, sidewalks, utilities, or other improvements which an owner or
operator of the site would otherwise be obliged to provide. In giving such consent, the legislative
body must find that the provision of the proposed public improvements by the Agency is necessary
to effectuate the purposes of the Redevelopment Plan for the Market Street Redevelopment Project
Area.
H & S Code Section 33678 adds the requirement that if tax increment money is used, the project
must meet the definition and purpose of "redevelopment" as prescribed in H & S Code Sections
33020 and 33021 and primarily benefit the project area from which the tax increment money is
derived.
These issues are discussed below:
Does the proposed project meet the definition and purpose of Redevelopment? [(H & S Code
Section 33678); Are the proposed public improvements of primary benefit to the Market Street
Project by helping to eliminate blight within the Project Area? (H & S Code Sections 33678 &
33445(a))]
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. Redevelopment also includes the alteration,
improvement, modernization, reconstruction, or rehabilitation, or any combination of these, of
existing structures in a project area. The Public Improvement Project meets the above definition of
redevelopment as it includes the design, improvement, modernization, and development of public
improvements within the Market Street Project Area.
The Public Improvement Project site is located within the Market Street Project Area. The Westside
Road area exhibits a mix of both old and new commercial uses. Well maintained modem commercial
structures are interspersed with older structures exhibiting both economic and physical blight. This
portion of the Market Street Project Area does not have standard public infrastructure amenities on
all roads, nor do all parcels have access to public utility systems such as sanitary sewer. As noted
above, an existing City eight-inch sanitary sewer main terminates at the southern boundary of the
subject parcels and the subject parcels currently do not have access. In order for the area to establish
new businesses or for old businesses to expand, availability of sanitary sewer is essential. Curb,
gutter, and sidewalk amenities are sporadic along Wests ide Road ending immediately to the north
Page 2 of 4
e
e
and south of the subject parcels. By providing standard urban amenities such as the proposed public
improvements, the Project Area's commercial properties are able to compete more effectively for
private investment and establishment of new business, thereby assisting in the effort to stabilize and
improve the economic base ofthe Project Area. Provision ofthe described public improvements is
of primary benefit to the Project Area for that reason.
The blight analysis conducted at the time the Project Area was amended in 1990, identified
inadequate public infrastructure as a blighting condition within the Project Area. The construction
of the public improvements will assist in the elimination of physical blight conditions within the
Project Area by extending a sewer line and providing standard urban amenities such as curb, gutter
and sidewalks where none currently exist. In addition, the construction of the private improvements
by Mr. Weaver will also assist with the elimination of both physical and economic blight in the
Project Area by improving and modernizing the frontages of two parcels, by providing additional
employment opportunities in the Project Area, and by acting as a catalyst for further private
investment in this portion ofthe Project Area. Additionally, construction ofthe improvements will
help remove contributors to blight by enhancing the area, addressing inadequate public
infrastructure, and helping encourage reinvestment of private funds into the Market Street Proje~t
Area. '
Are there any other reasonable means of financing the proposed improvements available to the
community? {(H & S Code Section 33445(a))j
As noted above, the design and construction of the proposed Public Improvement Project is
estimated to cost approximately $150,000. Limited City and redevelopment revenue sources are
utilized to meet multiple community priorities. The City's General Fund has been severely impacted
by the global economic recession, therefore, those funds are not available. The City' s Waste Water
Utility funds are also not available for this Project. Currently, the City has no other reasonable
means of funding the improvements without negatively impacting other planned for projects or
activities. Redevelopment tax increment funds are the only reasonable means available to the
community at this time for financing the proposed public improvements.
Is the project consistent with the Implementation Plan adopted for the Project Area? {(H & S
Code Section 33445(a))]
The 2010-2014 Implementation Plan for the Market Street Redevelopment Project Area, adopted
November 16, 2009, and amended November 15,2010, was prepared and adopted pursuant to H & S
Code Section 33490. The Implementation Plan specifically describes the Agency's involvement in
the creation of development partnerships, such as proposed with Mr. Weaver, as a blight-reducing
mechanism. The Agency activities identified in this category include assistance with on- and off-site
public improvements. The Implementation Plan specifically identifies the need to support economic
development in the Project Area by assisting with public improvements required for successful
business operation in the Project.
Further, the Implementation Plan contains specific goals and objectives relative to the elimination
ofblight within the Project Area. The proposed activity is consistent with and supports the following
goals:
Page 3 of 4
e
e
· Eliminate blighting influences and correct environmental deficiencies in the Project
Area, including, among others: inadequate or deteriorated public improvements,
facilities, and utilities; and '
· Provide opportunities for participation by owners and tenants in the revitalization of
their properties.
Is the provision of the proposed improvements by the Agency necessary to effectuate the purposes
of the Market Street Redevelopment Plan? [(H & S Code Section 33421.1)]
The stated objectives of the Market Street Redevelopment Plan, as amended in 1990, and its
supporting documents (Final Environmental Impact Report EIR-2-89 and the Preliminary Report)
are as follows: 1) to eliminate blight; 2) to stabilize the tax base; 3) to increase employment
opportunities; 4) to improve housing; and 5) to create an adequate physical, social, economic, and
psychological environment. With the exception of improving housing, the proposed Public
Improvement Project supports all of the above-stated objectives of the Market Street Project Area.
In regard to the provision of the proposed public improvements, as stated above, the Report to the
City Council prepared for the Amended Market Street Redevelopment Plan lists providing new
public improvements, replacing inadequate public facilities, and revitalizing facilities serving the
Project Area as essential components in the successful redevelopment of the Project Area. The
provision of the proposed improvements by the Agency is necessary to support this effort.
Page 4 of 4
e
e
LOCATION MAP
EXHIBIT 1
2 ~, 'Il____iIJ
~ _..~"'~-_.- ..
~t \
-1!~ ,
N
A