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HomeMy WebLinkAboutMINUTES - 10081991 - 1.59 TO: REDEVELOPMENT AGENCY f;A Contra FROM: Phil Batchelor . Costa Executive Director , County OgTA, ...... I . DATE: October 8, 1991 SUBJECT: Accept the North Richmond Revitalization Study. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept the Revitalization Study prepared for the North Richmond Redevelopment Project Area. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS I am pleased to present the recommendation of the North Richmond Project Area Committee to accept a Revitalization Study for the North Richmond Area. Prepared by Applied Development Economics, it analyzed the North Richmond Project Area relative to: (1) current and future land uses; (2) economic development potential; (3) areas and projects best suited for public investment; . (4) costs and timing of proposed improvement projects; (5) projection of tax increments; and (6) ways to address housing issues given an increase in demand created by greater economic activity. CONTINUED ON ATTACHMENT: X YES SIGNATURE: J RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMEND T N OF ENCY COMM TEE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON October 8 , 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: Community Development SRA18/jb/nrrevsty.bos ATTESTED October 8 , 1591 Redevelopment PHIL BATCHELOR, County Counsel AG NCY SECRETARY BYnm DEPUTY In brief, the Revitalization Study concluded the following (please refer to attached Executive Summary A for additional information) : 1. Project Area assets include low land costs, availability of vacant or undevelopable land, central location in the Bay Area, presence of redevelopment, an available labor force, and accessibility with the completion of the Richmond Parkway. 2 . Constraints to economic development include the lack of information about the hazardous waste and toxic problems and associated clean-up costs, inadequate infrastructure, strong regional competition, and poor image. 3 . Approximately 191 acres of economic development is anticipated in the next fifteen years from office, manufacturing, transportation and distribution firm growth. 4 . Recommended public projects include infrastructure improvements at selected areas, hazardous waste site assessments, employment and training assistance, marketing program, low and moderate income housing assistance, and the Rheem Site reuse development plan and EIR. The North Richmond Redevelopment Project Area Committee (PAC) met on September 11, 1991, to discuss this Revitalization Study. The PAC approved the Study, stating it included their goals and desires for the North Richmond community. The PAC, however, requested the Agency to protect the residential component and work to attract neighborhood-serving businesses to the Project Area. In 1989, the Redevelopment Agency received a $38, 000 Community Development Block Grant (CDBG) to hire a consultant to prepare a revitalization study for the North Richmond Redevelopment Project Area. The Agency entered into a contract with Ward & Associates to prepare this study. In August, 1990, Ward & Associates informed the Agency that they were unable to finish the study. The Agency met with several consultants and chose Applied Development Economics, in November, 1990, as the replacement consultant. i EXECUTIVE SUMMARY Applied Development Economics (ADE) has prepared a revitalization study of the North Richmond Redevelopment Area for the Contra Costa County Redevelopment Agency. The study addressed a series of issues that will significantly affect the future of North Richmond. They are: o What economic changes are occurring in the region and how will they impact the North Richmond Redevelopment Project Area? In particular, what will be the impact of the Richmond Parkway on the economic development potential of the project area? o What type of economic development is desired by the Project Area's residents, and what kind of economic growth is compatible with North Richmond's social and physical characteristics? o What kinds of industries can be attracted to the North Richmond Redevelopment Project Area? o What parts of the Project Area are best suited for public investment in infrastructure to encourage redevelopment? o What amount of tax increment revenues can be generated in the project area during the next 36 years, and how much should be allocated to fund improvement projects? o What improvement projects should the Agency fund to help attract new business and industry into the project area? What are the costs of the improvement projects? o How can community residents obtain better access to employment opportunities and improve the housing stock? o When should the improvement projects be made to make the greatest impact? These questions were investigated by the consulting team. The team (1)built an economic model that projects future demand for commercial and industrial land, (2)conducted a strategic planning meeting with the Project Area Committee, (3)calculated the total tax increment revenues that will accrue to the Agency, and (4)identified a list of improvement projects along with their associated costs. The report that follows summarizes the findings of our field work and analysis, and establishes a set of recommended improvement projects for the Agency that can act as a catalyst for economic and community improvement iii J Summary of Findings o A total of 451 acres within the Project Area has been designated for industrial uses, under current planning policies. A total of 217 acres are currently used for industrial purposes, 162 acres are used for agricultural nurseries, and only 72 acres are vacant. A number of the vacant properties are not yet suitable for development due to the lack of roads or other infrastructure. o The completion of the Richmond Parkway, which passes through the Project Area, is a significant economic development asset that will change North Richmond's strategic location in the region. The opening of.this highway will create economic development opportunities that have previously not existed. o Other significant assets that can be built upon include the project area's low land costs, its central location in the Bay Area, the presence of redevelopment, and the presence of an available labor force. o Significant problems will continue to constrain economic development in the Project Area. The constraints include the presence of hazardous waste and toxics at some sites. The lack of information about the magnitude of the toxic problem and the costs of clean up continues, to constrain new investment. Additional constraints include, inadequate infrastructure, strong regional competition, and poor image. o During the next fifteen years there will a demand for 191 acres of new land development in the greater North Richmond area.` There will be approximately 62 acres of the demand for business and personal service firms seeking office or business park environments. An additional 129 acres of new land will be needed to accommodate manufacturing, transportation, and distribution firm growth. The project area can capture most if not all the projected growth among - manufacturing, transportation, and distribution firms. However, there is no guaranteed absorption as the project area is competing with other land development projects in West Contra Costa County. With these key facts ADE conducted a strategic planning meeting with the Project Area Committee (PAC). This meeting produced the following outcomes. o The PAC members desired a growth of transportation and distribution firms in the Project Area. It was felt that transportation and distribution firms would provide job opportunities for residents and would not unduly disrupt the community's character. o Light industry is prefered for the area between Wildcat Creek and San Pablo ' The greater north Richmond area encompasses all the Ciry areas north and west of the City of San Pablo and south of Pinole as well as the county unincorporated area in the North Richmond Redevelopment Area which is the subject of this report. iv Creek. Light industrial uses can serve as a buffer between the residential and industrial areas of North Richmond. o New heavy manufacturing firms should be encouraged and located away from the residential areas, preferably north of San Pablo Creek. o Residents are concerned about the ability of service firms to provide jobs that fit the skills of North Richmond residents. As a result the PAC members did not want to actively pursue office development. Recommended Improvement Projects ADE is recommending.that the Agency fund'$13,542,600 of improvement projects which are briefly summarized below. o Property Acquisition, Road, Drainage, and Sewer Improvements along Gertrude Avenue and McCosker Lane. Total costs: $4,059,200. o Road, Drainage, and Water Delivery Improvements along Pittsburg Avenue and Garden Tract Road. Total costs: $638,600. o Road and Drainage Improvements. on Parr Boulevard. Road and Utility Improvements to Garden Tract Road and Goodrick Avenue .North of Parr. Storm Drain Master Plan for area north of Parr. Total costs: $859,300. o Road and Utility Improvements to Pittsburg Avenue, East of the Parkway, and Central Street. Total costs: $174,800. o Roadway, Drainage and Sewer Improvements to Brookside Drive East of Third Street. Total costs: $575,200. o Rheem Site Reuse Development Plan and EIR. Total costs: $150,000. o Hazardous Waste Site Assessments. Total costs: $600,000. o Employment and Training Assistance. Funded at an average of$200,000 per year (1991 .dollars) for 15 years for a.total of $3,000,000 (present value). o Marketing Program. Funded at an average of $75,000 per year (1991 dollars) for 10 years for a total of $750,000 (present value). o Low and Moderate Income Housing Assistance. Required by California Redevelopment Law. Amounts to 20 percent of all tax increment revenue. Estimated costs $2,735,500 to be spent over the 40 years of the project life. ADE conducted a financial feasibility, of the proposed improvement projects. We calculate that $160,928,905 in tax increment revenues will accrue to the Agency and be available for improvement projects during the next 36 years. This amounts to a net present value of $46,928,905. Although these revenues represent the "best case scenario," the projected v revenues are four times higher than the project improvement costs. Thus, the Agency has a sufficient margin of error to begin planning for a selected number of improvements that can be funded as tax increment accrue. Project Implementation The most important decision facing the Agency involves the timing and strategies used for project implementation., ADE has recommended .that the Agency phase .the improvement projects as follows. o Phase 1 Projects to Fund Prior to 1995. Will include the acquisition, clean up, clearing, and redevelopment of property on Gertrude Avenue as well as the recommended infrastructure improvements on Gertrude Avenue, McCosker Lane, Pittsburg Avenue and Garden Tract Road (south of' Parr Boulevard); the hazardous waste redemption studies and clean up if revenues permit, a reuse study for the Rheem Manufacturing Plant, the 'establishment of a marketM2 program, and the establishment of an employment and training assistance program. o Phase 2 Proiects 'to Fund Prior to 2000. Includes, the development of a storm drainage master planfor the area north of Parr Boulevard once the Richmond Parkway right of way has been determined, and the recommended infrastructure improvements on and north of Parr. o Phase 3 Projects to fund after 2000. Recommends infrastructure improvement 4 projects in the central industrial area south of Pan between the Parkway and the SPRR lines. The remainder of this report documents ADE's findings. vi