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HomeMy WebLinkAboutMINUTES - 09101991 - H.1 H.1 5 ContraTO: REDEVELOPMENT AGENCY 9uO � FROM: Phil Batchelor - Costa + _ �^' "J Executive Director �a1jKi`" DATE: September 10, 1991 SUBJECT: Biennial Public Hearing on the Pleasant Hill BART, North Richmond, West Pittsburg, Oakley, and Rodeo Redevelopment Plans, as Required by Community Redevelopment Law. SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept the Biennial Report. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS California Redevelopment Law (Section 3348. 5) requires that a Redevelopment Agency conduct a public hearing on a biennial basis to review redevelopment project area plans, evaluate the progress of projects and activities to accomplish redevelopment, goals, and hear the testimony of all interested parties. A Biennial Report on the Pleasant Hill BART, North Richmond, West Pittsburg, Oakley and Rodeo Redevelopment Plans has been prepared by staff and is attached as Attachment 1. A public notice of this hearing has been published and posted as required by Redevelopment Law and the report has been available for review. The- Agency should take testimony and comments on the Biennial Report and incorporate them into the report if appropriate. The Agency should either accept the report, with or without comments, or direct the report to be ret rned to the Agency with appropriate changes. CONTINUED ON ATTACHMENT: YES SIGNATURE: / J RECOMMENDATION OF EXECUTIVE DIRECTOR RECO14MEN N OF A NCY COMMI EE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON September 10, 1991 APPROVED AS RECOMMENDED X OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. cc: Redevelopment Director All other distribution ATTESTED September 10, 1991 via Redevelopment PHIL BATCHELOR, SRA18/jb/bihearng.bos AGENCY SECRETARY BY ° , DEPUTY ATTACHMENT 1 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY BIENNIAL REPORT 1991 Prepared by Contra Costa County Redevelopment Abency INTRODUCTION I. PLEASANT HILL BART STATION AREA A. History B. Financial Status C. Agency Activities D. Public Sector Activities E. Private Sector Activities F. Goals and Objectives II. NORTH RICHMOND A. History B. - Financial Status C. Agency Activities D. Public Sector Activities E. Private Sector Activities F. Goals and Objectives III. WEST PITTSBURG A. History . B. Financial Status C. Agency Activities D. Public Sector Activities E. Private Sector Activities F. _ Goals and Objectives IV. OAKLEY A. History B. Financial Status C. Agency Activities D. Goals and Objectives V. RODEO A. History B. Financial Status C. Agency Activities D. Goals and Objectives CONCLUSION INTRODUCTION California Community Redevelopment Law Section 33348.5 (Health and Safety Code 33000, et. seq.) requires that a redevelopment agency "biennially, conduct a public hearing for the purpose of reviewing the redevelopment plan for each redevelopment project within its jurisdiction and evaluating its progress " The law requires that notice of the public hearing be published and posted in four permanent places within the project area. This requirement has been complied with. The Contra Costa County Redevelopment Agency currently has five active Redevelopment Plans: Pleasant Hill BART Station Area, North Richmond, West Pittsburg, Oakley and Rodeo. A separate discussion of each Project Area is contained within this report. I. PLEASANT HILL BART STATION AREA A. History. The Pleasant Hill BART Station Area is a unique asset to the Contra Costa County community. In the 1970's it was envisioned that the station area, because of its highly accessible location next to Interstate 680, on a major sub-regional traffic corridor, and on the BART system, would become an area of high intensity commercial development. The Pleasant Hill BART Station Area Plan, adopted by the County in 1975, provided for such development. Development as contemplated by the 1975 Area Plan did not occur. Reasons identified for this were: 1) the inability of the private sector to assemble the numerous properties into logical development sites and; 2) the lack of a vehicle for financing infrastructure improvements necessary to support such development. For these reasons., the County jointly with the cities of Pleasant Hill and Walnut Creek and the Bay Area Rapid Transit District embarked on a process that ultimately led to the adoption of the Pleasant Hill BART Station Area Specific Plan in 1983 and the formation of the Contra Costa County Redevelopment Agency in 1984. A•redevelopment plan for the Pleasant Hill BART Station Area was adopted in 1984. A 1989 amendment incorporated additional territory into the Project Area to accommodate a major residential development with affordable housing. The Pleasant Hill BART Station Redevelopment Project Area is an area of approximately 125 acres. The focal point of the station area is the Bay Area Rapid Transit District station. B. Financial Status. The Pleasant Hill Redevelopment Project Area received approximately$1,300,000 in tax increment revenues in fiscal year 1990-91. In addition, the Agency was responsible for administering over $10 million in funds from developer fees, developer payments, and proceeds from issuance of bonds. These revenues are being utilized to undertake Agency activities within the project area. The Agency has incurred approximately $11.0 million in debt as of June 1991. This includes approximately $7.5 million in tax allocation bonds secured by the Agencies tax increment, as well as funds due to the County general fund and other County agencies. The Redevelopment Agency has repaid over $1.5 million of its debt to the County and County agencies. C. Agency Activities. The Redevelopment Agency has been involved in two major activities related to development within the Pleasant Hill BART Station Area since its inception: 1) the Agency has been a vehicle for assisting private developers in assembling their development sites in order to permit optimal development of the property; and 2) the Agency has been a vehicle for securing present and future financing of infrastructure necessary to support the development contemplated by Pleasant Hill BART Specific Plan. 1. To date the Redevelopment Agency has been instrumental in the financing of approximately $25 million in. infrastructure improvements and property acquisition necessary for future infrastructure improvements. These funds were generated through Agency tax increments,•assessment district bonds, private developer fees and property dedications. Major improvements to Treat Boulevard, Oak Road, Buskirk Avenue and Las Juntas Way have been completed utilizing these funds. In addition, funds have been utilized to acquire portions of the former Southern Pacific right-of:way for future roadway improvements. The Agency recently completed a study of Alternative Trak Mitigation Measures, including the construction of a major arterial within the Southern Pacific right-of-way, and modifications to the Oak Park Boulevard overcrossing on I-680. The Agency will be working with ,adjacent jurisdictions through the mechanism of the Pleasant Hill BART Station Area Steering Committee to implement these infrastructure improvements. These activities would be financed in part with future tax increment revenues of the Redevelopment Agency. Through provision of disposition and development agreements, the Agency has also assisted in the assemblage of the various development areas including, but not limited to, acquiring privately owned properties necessary to complete the development areas, completing the vacation and abandonment of the County rights-of-way, and securing property dedications necessary.for planned road and infrastructure improvements. In addition to the activities previously indicated the Redevelopment Agency has also assisted in the development and implementation of a transportation systems management program and the implementation of a child care facility response program. D. Private Sector Activities. Approximately 3.3 million square feet of commercial development and 1,300 residential units have been completed or approved within the Specific Plan area. Approximately 1 million square feet of commercial .development; a major hotel and over 300 residential units have been completed. An additional 892 residential units are under construction. The remaining private development has been approved or has vesting development rights per this specific plan. E. Goals and Objectives. Most development areas. within the Pleasant Hill BART Station Area Redevelopment Project Area have received development approvals and completed the assemblage of the sites. Therefore the major goals and objectives of the Redevelopment Agency in the future will be related to financing additional infrastructure improvements necessary to service the development contemplated and assisting the private development in securing financing for their developments. The Agency has one assemblage to complete, and intends to secure parties who can accomplish this in FY 91-92. The Agency anticipates refinancing its currently outstanding tax allocation bonds and .incurring additional tax allocation debt in.order to undertake significant projects in the near future. 2 • Agency and development activities are.subject to on-going monitoring by the Pleasant Hill BART Station Steering Committee. This multi jurisdictional committee has and will continue to serve-as the major mechanism for monitoring and directing activities of the Agency in the area. L 3 . IL NORTH RICHMOND REDEVELOPMENT PLAN A. History. The North Richmond Redevelopment Plan was adopted by the Contra Costa County Board of Supervisors by Ordinance No. 87-50 on July 29, 1987. The North Richmond 'Project Area is a contiguous area of approximately 900 acres located in West Contra Costa County. It is an unincorporated island bordered on the south, east, and north by the City of Richmond and on the west by the San Francisco Bay. The Plan was adopted in:response to many years of economic stagnation and physical decline that could only be reversed through the redevelopment process. B. Financial Status. The North Richmond Project Area was eligible for its first distribution of tax increment revenues from the 1988-1989 tax year. Unfortunately,hoped-for growth has been small, and as a result revenues from this source minimal. Tax Increment in 1990-91 was approximately $70,000. The Agency secured over $250,000 in Community Development Block Grant funds for housing subsidies and professional services related to a 7-unit affordable housing development, and for revitalization studies. Thus, no existing debt will be retired in the next year. The North Richmond Project Area has incurred approximately $136,000 in debts as of June 30, 1988. This indebtedness is made up of a loan from the Flood Control District and advances from the County General Fund. Additionally, the County will continue to provide the Project Area with certain administrative services which will accrue as debt for the Project Area. C. Agency Activities. While tax increment revenues have not materialized, the Agency none the less has continued to support development activity in the Project Area. The Agency has received,a_total of $206,000 in Community Development Block Grant allocations.to facilitate a 7-unit for-sale affordable housing development. A 33,740 square foot assemblage has been acquired and a Disposition and Development Agreement (DDA) executed with a Developer. The original developer defaulted on their construction loan. The Agency is working with the construction lender to secure a new development party. The Agency will utilize the CDBG funds for purchase subsidies to reach an affordability level below 80% of median. The Agency has also received a CDBG allocation for a Revitalization Study. The study is nearly complete. It provides a focused set of programs that the Agency can implement as tax increment revenues are received. 4 . Staff has continued to work with the Project Area Committee, property owners and the development community to implement the Redevelopment Plan. D. Other Public Sector Activities The Project Area, historically subject to seasonal flooding, has recently seen the completion of a flood control project that channelizes San Pablo and Wildcat Creeks. This project allows for the removal of adjacent lands from the flood plain. The result should be increased development and property improvements without the fear of destruction from flood waters. One other public project will have an impact on the North Richmond Project Area. The cities of Richmond, Pinole, and San Pablo, and Costa County and the Contra Costa County Redevelopment Agency are working together to construct the North Richmond Bypass. Also called Route 93, this high-speed, limited access expressway will connect I-580 east of the Richmond-San Rafael Bridge with I-80 at a new interchange to be located east of the Hilltop Drive interchange. The North Richmond Bypass will result in better access to the area which could facilitate industrial and commercial development. Redevelopment Agency staff has monitored this project and provided support as necessary. The East Bay Municipal Utilities District(EBMUD) is about to begin construction of its water reclamation facility. The Agency, in the review of environmental impacts of this project, noted the loss (in present value terms) of nearly $300,000 in property tax increments because of the public ownership of the project. EBMUD agreed to provide over $200,000 in infrastructure improvements that will benefit future Agency activities, and a cash contribution of over $50,000 for housing. E. Private Sector Activities. Since the 1987 adoption of the Redevelopment Plan there has been a small amount of new residential and commercial development. F. Goals and Objectives. The North Richmond Project Area should see a fair amount of development activity both public and private,. during the 1990's. The North Richmond Bypass and the County's Flood Control Project will generate increased interest from the development community. The Agency's affordable housing project will add 7 conventionally-built owner-occupant houses to the housing stock. The high level of interest in manufactured housing should continue. The Agency produced Revitalization Study will serve as a definitive planning document for private development. Finally, it is anticipated that at least one of several potential industrial projects will be developed. 5 . Agency staff will continue to work with the Project Area Committee, property owners and the development community to facilitate_ economic-growth.in the area, and attract new housing developments. 6 . III. WEST PITTSBURG REDEVELOPMENT PLAN A. History. The West Pittsburg Redevelopment Plan was adopted by the Contra Costa County Board of Supervisors by Ordinance No. 87-102 on December 29, 1987. The Project Area is a contiguous area of approximately 1,550 acres located in East Contra Costa County. It is generally bounded by the City of Pittsburg on the east, State Route 4 on the south, Port Chicago Highway on the west, and Suisun Bay and the Sacramento Northern Railroad Right-of-Way on the north. The Plan was adopted in order to address the many physical problems that exist within the area that has effectively restricted development from occurring. B. Financial Status. The West Pittsburg Project Area was initially eligible for a distribution of tax increment revenues in the 1989-90 tax year. Tax Increment revenue in 1990-91 was $400,000. The West Pittsburg Project Area has incurred a debt of approximately $93,000 as of June, 1991. This debt is made up of a loan from the Flood Control District and advances from the County General Fund. Additionally, the County will continue to provide the Project Area with certain administrative services which will accrue as debt for the Project Area. C. Agency Activities. The Agency has assumed an active role relative to development in the Project Area, even though revenues are small. The Agency was successful in its application for a $57,000 Community Development Block Grant (CDBG) for frontage improvements on Canal Road adjacent to Bel Air School. These funds were used to supplement a $22,000 Transportation Development Act grant. Without the Agency's participation the sidewalk improvements would have ended approximately 100 feet short of the school. Agency funds are also being used with other federal, state, and local funds to finance major improvements to Willow Pass Road and Port Chicago Highway. The Agency has made a preliminary commitment to the Contra Costa Water District .(CCWD) for a $1 . million program of water distribution improvements. This commitment is subject to CCWD becoming the water purveyor for West Pittsburg... The Agency has also received a CDBG allocation for a Revitalization Study. This study is complete and provides a focus for future Agency activities. Staff has continued to work with the Project Area Committee, property owners, and the development community to implement the Redevelopment Plan. 7 . D. .Other Public Sector Activities. Contra Costa County Public Works Department through the West Pittsburg Area of Benefit has started construction of the Willow Pass Road improvement program. This project should generate renewed interest in development along West Pittsburg's main commercial artery. The Bay Area Rapid-Transit District has purchased property for a future BART Station just outside of the redevelopment area in the City of Pittsburg. This station could serve as a catalyst for major development changes in a fashion similar to Pleasant Hill BART. The County has also secured a major commitment of Measure C funds to redo the Bailey -Road and Highway 4 interchange to facilitate the movement of increased traffic due to the new BART station. The Contra Costa County Housing Authority has recently completed a 3,800 square foot -child care facility in its Los Medanos Housing Project. While not generating tax increment to the Project Area, the development will serve a definite need. E. Private Sector Activities. There appears to be an increasing interest in both commercial and residential development since the beginning of 1989. This interest is in part related to,the continuing residential development just outside the project area. F. Goals and Objectives. The West Pittsburg Project Area should experience an increased level of development in the next year. The County's Area of Benefit Program should also have a major impact on development activity. With the Willow Pass Road improvements.underway, development interest has begun to emerge along its entire length. The Redevelopment Agency will work with property owners, developers and the community to insure this:development is of the highest quality attainable and conforms to the.Redevelopment Plan. The Agency may ..consider the use of tax allocation bond financing to undertake significant activities in the near future. 8 . IV. OAKLEY REDEVELOPMENT PROJECT AREA A. History The Oakley Redevelopment Plan was adopted by the Contra Costa County Board of Supervisors by Ordinance No. 99-89 on December 27, 1989. The Oakley Redevelopment Project Area is a contiguous area of approximately 964 acres located in East Contra Costa County. It is generally bounded on the east by the Atchison, Topeka, and Santa Fe (AT&SF) Railroad and State Route 4; on the south by Oakley Road, State Route 4 and Cypress Road; on the west by Bridgehead/Neroly Road; and on the north by the AT&SF right-of-way. The Redevelopment Plan was adopted in order to address the physical problems and deficiencies in infrastructure that have become more acute as development pressures outside the plan area have occurred. B. Financial Status The Oakley Redevelopment Project Area was eligible for'its initial distribution of tax increment revenues in FY 90-91. The Agency received approximately $150,000 in tax increments. The Oakley Redevelopment Project Area has incurred debt obligations of approximately $345,000 as of June 30, 1991. This debt is comprised of a loan from the County Flood Control District, advances from the County, and an obligation to finance future Highway 4 improvements. C. Agency Activities The Agency is assuming a more active role relative to development activities in Oakley now that revenues are accruing. The Agency has agreed to participate in Highway 4 improvements that are primarily funded by state and other local funds. Staff will continue to work with the Oakley Municipal Advisory Council, property owners, other public agencies, and the development community to implement the Redevelopment Plan. D. Goals and Objectives The Oakley Redevelopment Project Area should experience an increased level of development in the next year. The Agency and the Municipal Advisory Council will engage in a process of reviewing capital improvement needs and preparing a capital improvement plan. The Agency may consider the use of tax allocation bond financing to undertake significant activities in the near future. The Agency would also like to engage in a focused specific plan effort for downtown Oakley to determine its needs, constraints, and opportunities, and to prepare an implementation program. 9 . V. RODEO REDEVELOPMENT PROJECT AREA 'A. History The Rodeo Redevelopment Plan was adopted by the Contra Costa County Board of Supervisors by Ordinance No. 90-50 on July 10, 1990. The Rodeo Redevelopment Project Area is a contiguous area of approximately 650 acres in West Contra Costa County. It is generally bounded on the west and south by the.City of Hercules, on the north by San Pablo Bay, and on the east by Interstate 80. The Redevelopment Plan was adopted to address the physical problems and deficiencies in infrastructure that are becoming more acute with the passage of time. The area also has particular development opportunities that will likely only be achievable with Agency . assistance. B. Financial Status The Rodeo Redevelopment Project Area will be eligible for its initial distribution of tax increments in FY 91-92. As of June 30, 1991, the Agency has incurred $55,000 in debt to;support plan adoption. C. Agency Activities To date Agency activities have been limited to discussion of potential projects and priorities. A major planning effort, in which the Agency participates, is underway with respect to the Rodeo waterfront. The County,East Bay Regional Parks, and the Trust for.Public Lands are also involved in this process. The redevelopment process has induced a number of local property owners to consider development projects. These projects could emerge with an improving economic climate and the anticipation of Redevelopment Agency activities, particularly in the downtown and commercial areas. D. Goals and Objectives -The Rodeo Redevelopment Plan included four major goals and objectives which the Agency will pursue:_ . 1. facilitate downtown revitalization; 2. improving the circulation system; 3. constructing or upgrading other-public infrastructure; 4. strengthening existing residential neighborhoods and facilitating. new infill affordable housing. A Redevelopment Advisory Committee has been established and is working with staff to develop further implementation plans. An interest of the committee is the establishment of downtown development guidelines. 10. CONCLUSION The Contra Costa County Redevelopment Agency, since its formation in 1984, has become an integral part of the County's economic and residential development picture. The Pleasant Hill BART Station Redevelopment Plan (1984), North Richmond Redevelopment Plan (1987), the West Pittsburg Redevelopment Plan (1987), the Oakley Redevelopment Plan (1989) and the Rodeo-Redevelopment Plan (1990), all represent the Agency's commitment to the removal of blighting conditions, the creation of affordable housing, and the facilitation of economic activity that will bring jobs to a community and sales tax revenue to the County. The County's participation in redevelopment,in itself, demonstrates a willingness to forego property tax revenue in the short term by investing those funds in order to achieve positive results over the long term. These positive results will be reflected in increased employment sources for County residents, new and rehabilitated housing including affordable housing, and economic vitality that will produce a tax revenue stream that will allow County services to continue at a high level. Without the County's commitment to redevelopment, these positive impacts might not be felt. a:forms f ljb/biermial.rpt U 11•