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HomeMy WebLinkAboutMINUTES - 02231993 - IO.1 TO: BOARD OF SUPERVISORS I .O.-1 W.5 of ontra FROM: INTERNAL OPERATIONS COMMITTEE Costa of iS County DATE: February 8, 1993 SUBJECT: REPORT ON FEASIBILITY OF A REDEVELOPMENT PROJECT AREA CONSTITUTING ONLY BUCHANAN FIELD AIRPORT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1 . Concur with the previous staff conclusion that a Redevelopment Project Area comprised solely of Buchanan Field is not feasible at this time. 2 . Remove this item as a referral to the Internal Operations Committee. BACKGROUND: On January 26, 1993 the Board of Supervisors referred to the Internal Operations Committee and Finance Committee the issue of whether a Redevelopment Project Area comprised solely of Buchanan Field is feasible at this time. On February 8, 1993 our Committee met with Jim Kennedy, Deputy Redevelopment Director, and reviewed the attached report. It is clear to our Committee that as long as the Redevelopment Agency cannot capture the additional revenue from the PACE and Sportland stores it is not financially feasible to consider a Redevelopment Project Area which includes only the Buchanan Field Airport property. We are, therefore, recommending that the Board of Supervisors concur with the staff position recommended to the Board previously. CONTINUED ON ATTACHMENT: .Y_YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): SUNNE WRIGHT McPEAK JEFF SMITH ACTION OF BOARD ON February 23, 1993 APPROVED AS RECOMMENDED OTHER The Board DEFERRED this matter to March 2 , 1993, and requested a map of the area being considered. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE —�UNANIMOUS(ABSENT T ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED February 23 , 1903 Contact: County Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF CC., Community Development Director SUPERVISORS AND COUNTY ADMINISTRATOR Jim Kennedy, Deputy Redevelopment Director Public Works Director n Manager of Airports j( Tony Enea, Senior Deputy County Administrator DEPUTY CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: February 4, 1993 TO: Internal Operations Committee Supervisor Sunne Wright McPeak Supervisor Jeff Smith Finance Committee Supervisor Tom Powers Supetvi or le Bishop FROM: Jim;anan Dept - Redevelopment i SUBJECT: f uField Redevelopment Project Area I. Basis for January 26, 1993 Recommendation The basis for the staff recommendation of January 26, 1993 (Attachment A) was due to two interrelated elements - the Redevelopment Plan Adoption scheduling/process, and resultant financial feasibility. The Redevelopment Plan Adoption process has a "critical path" schedule and sequence .that can no longer be accomplished in the current fiscal year. That results in the process having to be restarted in FY 93-94 with a new base year Assessed Value that includes Parcel A (PACE, Sportland). Therefore, the property tax increment from Parcel A would not accrue to the Redevelopment Agency. The estimate of maximum tax increment for a Buchanan Field only Redevelopment Project is shown on Attachment B. The purchasing power of the gross tax increment revenue stream is $1.7 million. This value is likely to be lower because of fiscal agreements, housing set-asides, and administrative costs. An example, with relatively conservative assumptions, is provided as Table 1. The comparison of the purchasing power to the contributions of the County and County-controlled agencies is quite close (Purchasing Power = $742,381; County contributed revenue = $562,700). The proper policy question to ask is whether the County wouldn't be better off financing the capital project(s) directly, rather than indirectly via redevelopment (which costs money to implement, which costs to administer, and which diverts away from capital projects). TABLE 1 ESTIMATE OF BUCHANAN FIELD REDEVELOPMENT TAX INCREMENTS (Net Present Value) Gross Tax Increments $1,712,417 Minus 208 Housing Set-Aside (1) $342,483 Fiscal Agreement Pass-Thru's Fire District (2) $251,554 Mosquito Abatement (3) $2,312 East Bay Regional Parks (4) $20,292 Supt of Schools (5) $9,076 Mt Diablo Unified Schools (6) $223,778 Sub-Total $507,012 Administration (7) $120,541 Net Tax Increment for Capital Projects $742,381 Footnotes (1) Mandated by State Law (2) Board Policy of 1008 pass-thru (3) 508 pass-thru (4) 308 pass-thru (5) 508 pass-thru (6) 408 pass-thru (7) 108 of net available tax increment Internal Operations Committee Finance Committee Page 2 II. Costs of Redevelopment Plan Adoption Prior to Abandonment Attachment C provides the actual costs incurred prior to abandonment. The Agency's consultants had substantially completed an administrative draft of the EIR, and an administrative draft of the Preliminary Report prior to abandonment. Both were necessary prior to initiation of subsequent steps, i.e., community consultation and fiscal review. III. Asset Protection Buchanan Field is an asset that the Board of Supervisors has consistently maintained should be under the jurisdiction of the County. A Buchanan Field only Redevelopment Project provides no additional protection because it is in the sphere of influence of one city. Further, Buchanan Field and the boundaries of the Redevelopment Area are uninhabited. The County as owner of the property, and majority owner of properties subject to annexation, should be able to control its own destiny as to whether and on what terms annexation occurs. cc: CAO County Counsel Director, GMEDA Director of Community Development Public Works Director Airport Manager File H 1.1(c) ljk/jb/bfredpa.mem TO: REDEVELOPMENT AGENCY antra ' Costa FROM: Phil Batchelor Cour tv/ Executive Director DATE: January 26, 1993 SUBJECT: Buchanan Field Redevelopment Project Feasibility Analysis SPECIFIC REQUEST S) OR RECOMMENDATIONS(S) & BACEGROUND AND JUSTIFICATION RECOMMENDATIONS ACCEPT REPORT on the feasibility of a Redevelopment Project Area comprised of Buchanan Field; and CONCUR with conclusion that a Redevelopment Project Area comprised solely of Buchanan Field is not feasible at this time. FISCAL IMPACT None. BACXGR0VND/REAS0NS FOR RECOMMENDATIONS See attached report. CONTINUED ON ATTACHMENT: YES SIGNATURE: _.RECOMMENDATION OF EXECUTIVE DIRECTOR RECOIDEMATION OF AGENCY COMMITT=. APPROVE O'H i / SIGYATURE(S) : ACTION OF AGZNCY ON APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: bMNUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Jim Kennedy 646-4076 ATTESTED trig: Redevelopment Agency PHIL BATCHELOR, County Administrator AGENCY SECRETARY County Counsel G:4EDA Community Development BY , DEPUT"- Public Works Airport Manager via Redevelopment - Pacheco Municipal Advisory Council - Goldfarb & Lipman :.rrewnr�a.bm • PZ .� y CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: January 26, 1993 TO: Redevelopment Agency el— FROM: Jim K y Deputy Dire r-Redevelopment SUBJECT:Buo a; Field Redevelopment Project Area On December 22, 1992 the Redevelopment Agency Board of Supervisors terminated the Redevelopment Plan adoption process as it relates to the Pacheco community. The Agency/Board requested a report on the feasibility of a Redevelopment Project Area comprised of Buchanan Field only (map attached). I. CONCLUSION Two factors were evaluated with respect to this feasibility analysis: 1. Plan adoption schedule; 2. Financial viability/Asset Protection. The report concludes that the formation of a Redevelopment Project Area comprised of Buchanan Field only would not generate sufficient tax increment to be financially viable. In large measure this occurs because the adoption of a Redevelopment Plan for Buchanan Field would require utilization of the 1993-94 Equalized Tax Roils, therefore, tax increment from Parcel A (PACE) would not accrue to the Agency. II. BACKGROUND/ANALYSIS Two interacting factors must be evaluated to determine the feasibility of a Redevelopment Project comprised of Buchanan Field alone - Plan adoption schedule and financial viability. A. Plan Adoption Schedule The Redevelopment Plan adoption process takes approximately 12 months from initiation to adoption. Initiation of the Redevelopment Plan adoption process begins with the release of the Equalized Tax Roll in August of each year. The AA - P3 �7Y TO: Redevelopment Agency -2- January 26, 1993 RE: Buchanan Field Redevelopment Project Area Redevelopment Plan must be adopted prior to release of the subsequent year's Equalized Tax Roll. The procedural steps required for a Buchanan Field Redevelopment Plan adoption cannot now be completed prior to the County releasing its 1993-94 Equalized Tax Roll. Therefore, the Redevelopment Plan adoption process would have to be restarted in August, 1993. The 1993-94 Equalized Tax Roll will include the improvement values on Parcel A at Buchanan Field (PACE, Sportsmart). Since the 1993-94 Ta_x Rolls will be the base year, the Redevelopment Agency will accrue no property tax increments from Parcel A. Tax increment potential would be limited to Parcel B on the west side of the Airport. B. Financial Viability/Asset Protection Parcel B permits up to 180,000 square feet of private commercial development. Depending on the development type, the value of those improvements could range from approximately $10-15 million (development values of $55-85/foot). Tax Increment resulting from such development would range from $115,000- 170,000/year. This annual income stream would likely be reduced by Fiscal Agreement pass-thru's to other taxing entities, and by administrative costs. Conservatively, 30% of the gross tax increment could be lost to other taxing entities, decreasing the annual revenue stream to a range of $80,000-120,000. A viable Redevelopment Program would not be supportable with such revenues. Furthermore, the Redevelopment Plan adoption expenses would still be an estimated $150,000. Buchanan Field is an asset that the Board of Supervisors has consistently maintained should be under the jurisdiction of the County. Buchanan Field and the boundaries of the Redevelopment Area are an uninhabited area. The County as owner of the property, and majority owner of property subject to a change in political jurisdiction, should be able to control its own destiny as to whether a change in political jurisdiction is appropriate. JK:fh vaWbuchfiel.mem FIGURE I-2 P Y AIRPORT LOCATION MAP BUCHANAN FIELD AIRPORT ---- SOUNCAIRPORT PROPERTY BOUNDARY CONCORD, CA SCALE • a t,oaa' . SOURCE: MCCL:NTOCX. SECXER 3 ASSOCIATES APRIL 1989 7 ` NIN' RPORATE7 •'' 09 a c to� SOLANO P DR1Y[_/N CZHTRAL SANITARYS�*<� TH[ATUI al[TRICT TR[ATL[NT PLANT O � y U¢ yC w�ON V CAP NILLCR[ST PAN[ Z V OILLCJIK [ TANY c 1 SCHOOL ago. y Lam" HILL![ Q Niwiii L rI Q � • O ti l O ~ CS4La YI a� a G: P OC Q� IE Ca = C A W IA C W o � J 6 u / >'A _ / NNAN DfCHOM a i [uCNANAN PILO GOLP COYNa[ PLE. 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Please be advised that the total cost to abandonment were as follows: Redevelopment Plan consultants: $ 30,260.95 EIR consultant: 36.078.92 TOTAL: $ 66,339.87 JK:Ih cc: Fla H3.1 1a) sraVcosts.mem