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HomeMy WebLinkAboutP.H. 1 TWN CTR REDEV 02-21-89 PUBLIC HEARING Inter- eom DATE: FEBRUARY 21, 1989 ~ .. TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR FROM: .' SUBJECT: COMMUNITY DEVELOPMENT DEPARll4ENT JOINT CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING PROPOSED SECOND AMENDMENT TO THE AMENDED REDEVELOPMENT PLAN FOR THE TOWN ~.FNTFR I~FrlFVFI flPt4FNT Pl~fl,lF~T RECOMMENDATION It is recommended that the City Council and Redevelopment Agency open the public hearing; receive written testimony; receive oral testimony; close the public hearing and instruct staff to return wi th written responses to written objections to the Plan Amendment received from property owners and taxing agencies at a Joint meeting of the Council and Agency to be held on March 6, 1989. BACKGROUND The Redevelopment Plan for the Town"Center Area Redevelopment Project was originally adopted on November 22, 1976 and subsequently amended lon September-8, 1981. The Project Area encompasses approximately 360 acres in the central portion of the City. The project area is generally bounded by the Santa Ana Freeway to the south, 'B' Street and Prospect Avenue to the west, Irvine Boulevard to the north and Newport Avenue to the east. A small area immediately north of Irvine Boulevard and immediately east of Newport Avenue is also included in the Project Area. The process of identifying necessary amendments to the Redevelopment Plan currently being proposed was initiated in late 1987 when t. he Redevelopment Agency contracted with the firm of Katz-Hollis. A summary chronology of pertinent processing events on the proposed amendment is included as Attachment I. The Second Amendment proposes some 32 changes and additions to the Town Center Plan. The major purposes of the proposed Amendments to the Town Center Redevelopment Plan are as follows: 1. ADD CERTAIN PUBLIC IMPROVEMENTS AND FACILITIES TO THE LIST CONTAINED WITHIN THE PLAN TO BE FUNDED IN WHOLE OR IN PART BY TAX INCREMENT REVENUES. The existing Town Center Redevelopment Plan contains a list of public improvement projects on which the Agency may spend redevelopment funds. In the thirteen years since adoption of the original Plan, the Agency has extensively, evaluated the Plan's original objectives and the progress of Redevelopment Agency Report Second Amendment to the Amended Redevelopment Plan for the Town Center Project Area February" 21, 1989 Page two the Agency's public improvement program in the Town Center Area. Based on this evaluation, there are several additional public improvement projects which the Redevelopment Agency may wish to use redevelopment funds in the future in order to implement and further attain its goals and objectives. Some of these improvements include: the construction of the Tustin Area Senior Center; street, traffic and water improvements; expansion/renovation of the Civic Center; renovation of an existing school site for recreational programs; renovation of Peppertree Park; and additional improvements to Columbus-Tustin Park. A complete list of specific projects is provided in the Proposed Amendment and report tO City Council. These projects should be listed in the Plan if there is any expectation that even a portion of funding will be by redevelopment tax increment' revenues. Any actual expenditures of Redevelopment Agency funds for any individual project including any future financing for such programs would require separate discretionary approval by the Agency. . INCREASE THE LIMIT ON THE PRINCIPAL AMOUNT OF BONDED INDEBTEDNESS THAT CAN BE OUTSTANDING BY THE AGENCY AT ANY ONE TIME FROM $20 MILLION TO $35 MILLION TO COVER ALL EXISTING.. PROJECT DEBTS AS WELL AS ANY ADDITIONAL BONDED INDEBTEDNESS THAT MAY BE NECESSARY AS A RESULT OF ADDITIONAL PROGRAMS PROPOSED. This is essentially like a credit limit. At the present time, the Agency is near its limit and in o'rder to ensure adequate funding of those projects to be added to the Plan, as well as other projects which may come along in the future, the bonded indebtedness limit for the Town Center Redevelopment Project Area needs to be raised. A full financial analysis of the necessity for the proposed increase is provided in the Report to Council on the Proposed Amendment. If the limit is not increased, the Agency will be severely hampered in its ability to contribute to certain public improvements within the Town Center Redevelopment Project Area, as existing bond debts would have to be paid off prior to issuance of more bonds. It is important to note that bonds are paid' off with tax increment revenues from within the Town Center Redevelopment Project Area, and are not an obligation on the residents of the City or on the City's General Fund. ' The increased tax increment limit has been studied and determined to be adequate to cover additional project implementation costs that might result from public improvements proposed to be added by the Plan. 3. RESTATE THE TAX INCREMENT LIMIT IN THE PLAN OF $3 MILLION PER YEAR AS $90 MILLION OVER THE LIFE OF THE PLAN. This does not affect the increase in the Bond debt limit. 4. EXTEND AGENCY'S POWERS OF EMINENT DOMAIN FOR 12 YEARS (THE MAXIMUM Community Developmen~ DeparTment Redevelopment Agency Report Second Amendment to the Amended Redevelopment Plan for the Town Center Project Area February 21, 1989 Page three PERMII'FEO BY STATE LAW). The Agency's current eminent domain authority expired in November 1988. Eminent domain has not been and would not be used as a method for wholesale property acquisition, but rather it would be used selectively when there are significant obstacles to achieving the goals and objectives of the Agency in its efforts to facilitate improvement within the project area. For those property owners who are desirous of developing or selling their properties for private development, there would be significant tax advantages lost if they were unable to obtain a "friendly" threat of condemnation letter from the Agency. To allay any concerns that a property owner may have as to whether they might ever be threatened with condemnation, the proposed amendment also provides a process where an owner may request the Agency to approve a Certificate of Compliance on their property. Once a Certificate of Compliance is approved or recorded on a specific property, the Agency would be restricted in their ability to acquire or condemn the property. '. S. REVISE AND UPDATE PORTIONS OF THE TOWN CENTER REDEVELOPHENT PLAN'S LANGUAGE OR TEXT TO BE CONSISTENT NITH RECENT REVISIONS IN STATE LAH ANO TO CLARIFY THE ROLES OF THE AGENCY, PROPERTY OHNERS AND BUSINESSES IN THE REOEVELOPHENT PROCESS. The ma jority of these changes are of a "housekeeping" nature. In summary, the proposed amendments are not expected to directly affect private property. No change in the boundaries or additional uses in the Town Center Redevel.opment Plan are proposed. The proposed amendments will also not result in any .increases in taxes on properties within the Project Area. In conjunction with the proposed amendment, a report to City Council was required. Representatives from the firm of Katz-Hollis will be availa.ble to explain the report, the financial analysis contained in the report and answer any additional questions. A comprehensive binder which contains documents that the City Council may wish to consider or refer to related to the proposed Amendment will be submitted under separate cover along with this agenda item. Christine A. ShingleJ~K~d Director of Communit4y~ Development CAS:ts Attachment: Chronology of Events community DeveloPment DeparTment ATTACHMENT I DEPARTMENT OF COMMUNITY DEVELOPMENT CHRONOLOGY OF E'VENTS SECOND AMENDMENT TO TOWN CENTER REDEVELOPMENT PLAN Description of Action Joint Public Hearing Notice of hearing sent to taxing agencies, property owners, businesses, and others Notice of hearing published City Council receives Report, Amendment and Owner Participation and Preference Rules Agency approves Report to Council, approves Owner Participation and Preference Rules Joint Public Hearing scheduled Agency/Council certify final EIR and receive Planning Commission recommendation Taxing Agency letter - verifying n'o impacts or financial burden of Amendment Planning Commission recommends approval of proposed Amendment/Prel iminary Report Planning Commission transmitted Amendment/Report Review period on EIR ends No call for Fiscal Review from Taxing Agency Transmittal of Draft EIR/Preliminary Report to taxing agencies, and other agencies Notice of Completion of EIR and availability published 'Council/Agency authorizes transmittal of Draft EIR/Plan Amendment/Preliminary Report to taxing agencies Council/Agency held workshop on Plan Amendment/ Prelimi nary Report Dates 2/21/89 2/4-6/89 1/12,19,26/89 and 2/6/89 2/6/89 2/6/89 1/17/89 12/5/88 11/29/88 11/28/88 11/14/88 9/8/88 8/24/88 8/8/88 8/4/88 8/1/88 8/1/88 Public workshop/Scoping Session on EIR and Amendment 2/11/88 Attachment I Chronology of Events Page two Description of Action Notice of Preparation of EIR and Scoping Session mailed to owners and hand distributed to businesses, notice of Scoping Session published Notice of Preparation of a Draft EIR mailed to taxing agencies and others List of Public Projects transmitted to Council/Agency for comment - list revised in response to comments received Redevelopment Consultant commences preparation of Amendment Dates 1/29/88 12/11/87 10/13/87 8/5/87