HomeMy WebLinkAboutReso 2011-067 - Canby-Hilltop-Cypress
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RESOLUTION NO. 2011 - 67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE USE OF TAX INCREMENT FUNDS TO CONSTRUCT PUBLIC
IMPROVEMENTS WITHIN THE CANBY-HILLTOP-CYPRESS
REDEVELOPMENT PROJECT AREA
WHEREAS, the Redding Redevelopment Agency (Agency) desires to utilize tax increment funds
from the Canby-Hilltop-Cypress Redevelopment Project Area (Project Area) to design and construct public
improvements consisting of curb, gutter, sidewalk, and driveway approach improvements along East Cypress
Avenue; curb, gutter, sidewalk, and driveway approach improvements along Leila Avenue; public water line
realignment; and extension of the storm drain and sanitary sewer systems within Leila A venue in the 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 ofland 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 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 ofthe 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, 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 of the 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 of the requirements set forth in California Health and Safety Code Sections
33445(a), 33678 and 33421.1.
2. The construction of the 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.
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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 of
the Canby-Hilltop-Cypress Redevelopment Plan.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a special meeting of
the Redding City Council on the 20th day of June, 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
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APPROVED AS TO FORM:
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RICHARD A. DUVERNAY, City
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ANAL YSIS OF THE PROPOSED USE OF REDEVELOPMENT FUNDS
Redding Subaru 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 65
lineal of feet of curb, gutter, sidewalk and a driveway approach at 481 East Cypress Avenue; 50
lineal feet of curb, gutter, sidewalk and a driveway approach at 730, 736, and 740 Leila Avenue;
expansion of the storm drain and sanitary sewer system within Leila Avenue approximately 225
lineal feet and 220 lineal feet respectively; and realignment of the public water line within Parcel A
servicing the fire hydrant along Cypress A venue (the "Public hnprovements"). The project is located
within the Canby-Hilltop-Cypress (CHC) Redevelopment Project Area (Project Area). The attached
Exhibit I depicts the location of the proposed Public hnprovement Project.
Due to the 2010 closure of Shasta Nissan Subaru and Subaru of America Incorporated's interest to
reestablish their brand independently in Redding, Ed Reuther and Jeremy Cunningham (Reuther and
Cunningham) were selected to open a new dealership, Redding Subaru. Subsequently, in November
2010, Reuther and Cunningham purchased 481 East Cypress Avenue and 730, 736, and 740 Leila
A venue (Project Site) as the new home of Redding Subaru. Currently, Redding Subaru occupies the
Project Site and is operated out of an existing 1 ,200-square-foot showroom/office. Over the next 15
months, Reuther and Cunningham are proposing to demolish the existing showroom/office and
construct a new approximately 5,900-square-foot showroom/office within Parcel A and an
approximately 7,000-square-foot service building within Parcel B. In addition to the construction of
the new buildings, Reuther and Cunningham will be installing parking facility improvements which
include vehicle display spaces, parking spaces and lighting; accessible routes of travel that include
walks, ramps and curb ramps, fencing and/or block walls; on-site drainage improvements; and
landscape improvements. These private property improvements to be undertaken by Reuther and
Cunningham will not utilize any redevelopment financing.
To date, Redding Subaru has hired a total of 16 new employees that include: five sales people, two
sales managers, one lot attendant, two mechanics, two parts people, one office person, two service
writers, and one service manager. Following the construction of the new showroom and service
building, Redding Subaru anticipates that there will be a need to hire more employees.
As proposed, the Agency will utilize up to $150,000 of its tax increment revenues from the CHC
Project Area toward the cost of the described Public hnprovements. A portion of the proposed
Public Improvements is required by the City of Redding (City) as part ofthe permitting process for
the private improvements proposed by Reuther and Cunningham. These include the concrete
sidewalk and driveway improvements along Leila Avenue and the public water line realignment to
service the fire hydrants. The sewer and storm drain extension and the remaining curb, gutter, and
sidewalk improvements along East Cypress Avenue are not triggered by the permitting process. It is
proposed that redevelopment funds be used to design and construct only the Public hnprovements as
described above.
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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 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;
2) That no other reasonable means offinancing 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 of the 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 CHC Redevelopment Project A rea.
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 ofprimarv benefit to the CHC 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, reconstruction, and
development of public improvements within the CHC Project Area.
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The Public Improvement Project Site is located within the CRC Project Area. Construction of the
Public Improvements will help remove contributors to blight by addressing traffic circulation
problems, pedestrian access, and correcting deficiencies of the public water, sanitary sewer, and
storm drain systems. In addition, the noted Public Improvements will complement the infrastructure
improvements associated with two affordable housing projects, Laurel Glen Apartments and Saint
Clare Court Apartments completed by the Agency in 2004 and 2010 respectively. The driveway
approach and the associated curb, gutter and sidewalk improvements located along East Cypress
A venue will be relocated to improve access to Redding Subaru which in turn will improve traffic
circulation at the East Cypress Avenue and Bechelli Lane intersection. Along the Leila Avenue
street frontage, the driveway approach will be reconstructed to comply with American with
Disabilities Act standards thereby improving pedestrian access. The public water line will be
realigned to accommodate the location of the new showroom building. Within Leila Avenue, the
sanitary sewer and storm drain system exist but are not extended to the Project Site. The existing
sanitary sewer line is located 220 lineal feet to the west of Parcel B and will be extended to the back
ofthe sidewalk, at the subject parcel, to service the new service building. The storm drain system is
located approximately 225 lineal feet to the west and will be expanded to Parcel B which will direct
storm water runoffto the public storm drain system. The blight analysis conducted at the time the
Project Area was amended in 1990, identified inadequate public infrastructure as a blighting
condition within the CRC Project Area. The Public Improvements, when completed, will of primary
benefit to the CRC Project Area through the improvement of traffic circulation patterns and the
replacement of inadequate infrastructure, thereby assisting in the elimination of physical blight.
Furthermore, the construction of the private improvements, noted above, will also assist with the
elimination of both physical and economic blight in the Project Area by improving and modernizing
the street frontages of East Cypress A venue and Leila A venue; constructing a new showroom
building complete with landscape and site improvements; and developing vacant, underutilized
parcels. These private improvements will provide additional employment opportunities in the CRC
Project Area and act as a catalyst for further private investment in this portion of the CRC Project
Area.
Are there any other reasonable means of financing the proposed improvements available to the
community? [(H & S Code Section 33445(a))]
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, Storm Drain or Streets funding sources 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 onIyreasonable means
available to the community at this time for financing the proposed public improvements.
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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 CRC Project Area, adopted November 16, 2009, was
prepared and adopted pursuant to R & S Code Section 33490. The Implementation Plan specifically
describes the Agency's involvement in the creation of development partnerships that promote new
development, as proposed by Reuther and Cunningham, as a blight reducing mechanism. The
Agency activities identified in this category include assistance with on- and off-site public
improvements. The development partnership and the resulting private and public improvements will
create a new auto dealership that will improve the economic viability and expand the employment
opportunities in the CRC project Area.
Further, the Implementation Plan contains specific goals and objectives relative to the elimination of
blight within the Project Area. The proposed activity is consistent with and supports the following
goals:
· Improve and develop additional pedestrian, bicycle, vehicle, and public transportation
circulation systems;
· Construct, install, and replace publicly-owned utility systems such as water, storm
drains, and sanitary sewers where existing systems continue to be nonexistent,
inadequate, undersized, or substandard; and
· Improve and, where necessary, modify present public streets by installing new road
surfaces, curbs, gutters, and sidewalks; introducing newly designed and visually
integrated street furniture; and developing an improved street-lighting system.
Is the provision of the proposed improvements by the Agency necessary to effectuate the purposes
of the CHC Redevelopment Plan? [(H & S Code Section 33421.1)]
The principal objective of the CRC Redevelopment Plan, as amended in 1990, is to improve the
Redevelopment Area physically and environmentally by correcting the deficiencies in the CRC
Project Area's infrastructure. Further objectives are to eliminate blighting influences, modify the
present street and transportation systems, provide amenities for use and enjoyment of people residing
in or near the CRC Project Area, improve housing, and to create a sense of pride, dignity, and beauty
within the CRC Project Area. With the exception of improving housing and providing amenities, the
proposed Public Improvement Project supports all of the above-stated objectives and will assist in
the successful redevelopment ofthe CRC Project Area.
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