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Home My WebLink AboutMINUTES - 01261993 - 1.64 TO: REDEVELOPMENT AGENCY .:' Contra FROM: Phil Batchelor �� Costa Executive Director Coin r^ c urs DATE: January 26, 1993 SUBJECT: Buchanan Field Redevelopment Project Feasibility Analysis SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND 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. BACKGROUND/REASONS FOR RECOMMENDATIONS See attached report. r; J CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR RECO NDATION';OF AGENC COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON January 26 , 1993 APPROVED AS RECOMMENDED OTHER X IT IS BY THE BOARD ORDERED that the above report is REFERRED to the Internal Operations Committee and the Finance Committee for report on the analysis' of the Buchanan Field Redevelopment Project area. 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. Contact: Jim Kennedy 646-4076 ATTESTED January 26 , 1993 orifi: Redevelopment Agency PHIL BATCHELOR, County Administrator AGENCY SECRETARY County Counsel GMEDA Community Development BY 0 , DEPUTY Public Works Airport Manager via Redevelopment Pacheco Municipal Advisory Council Goldfarb & Lipman sra7/bachfiel.bos Internal Operations Committee Finance Committee r �. t'f J CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: January 26, 1993 TO: Redevelopment Agency FROM: Jim K y Deputy Dire r-Redevelopment SUBJECT Bu nan 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 Rolls, therefore, tax increment from Parcel A (PACE) would not accrue to the Agency. IL 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 r' 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 Tax 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. J K:lh sraVbuchfiel.mem FIGURE I-2 AIRPORT LOCATION MAP BUCHANAN FIELD AIRPORT AIRPORT PROPERTY BOUNDARY CONCORD, CA SCALE F- —i O 1,000' SOURCE: McCLINTOCK, BECKER 8 ASSOCIATES APRIL 1989 NIN RPORATED 09 NDN Ogg A•• FR1, SS p'�p 8 �MHpFF pa�VE �•�•'•'•'• s ; U ~ aO�t(c •�' SOLANO DRIVE-IN CENTRAL SANITARY p'�� THEATER 'wy DISTRICT TREATMENT Is E' ° PLANT \ P WY 9 AO• CLAPTON V ORAip HILLCREST PARK tlo, � ILLCRES = ELEMENTARY O SCHOOL DEO. >y O MINTER N EMORIAL ENTER a 00 0t N + N 4y* � l►� QO O, O m F 3 V v m _JLJ B H D P C TObv A u _ O . F ADD AVE _ MT.DIABLO p Z I �: HIGH SCHOOL BUCHANAN FIELD E >` GOLF COURSE PLE ANT N N •��; H Y6 ti� ?r e �•� s � Q, 4 W, r _ CORD = _ o` , } y w� CONC PARK BORD SXOP a; pJ o;4Oi + a to O oA PpP 4 EOE —•A O � OP i DIABLO VALLEY WILLOW 1• SHOPPING COLLEGE - CENTER SUN VALLEY P99 h ° ••� SHOPPING V i CENTER oal T-F, CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: January 26, 1993 TO: Redevelopment Agency FROM: Jim K Deputy Dire r-Redevelopment SUBJECT-/. Bu nan 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 Rolls, 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 e 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 Tax 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 $150,000. Buchanan Field is an asset that the Board of Supervisors has consistently maintained should be under the jurisdiction of the County. Buchanan Field and the boundaries of the Redevelopment Area are an uninhabited area. The County as owner of the property, and majority owner of property subject to a change in political jurisdiction, should be able to control its own destiny as to whether a change in political jurisdiction is appropriate. JK:Ih sraWbuchfiel.mem FIGURE I-2 • _p AIRPORT LOCATION MAP N 11 BUCHANAN FIELD AIRPORT - BOUNDARY ti CONCORD, CA SCALE 0 1.000' SOURCE: MCCLINTOCK, BECKER d ASSOCIATES APRIL 1989 icy { NIN RPORATED r r • O O•p�E` 8�Ar�P � } r.r Mt`DF�OP`yE .r�r�r'r r DRIVE-$" CENTRAL SANITARY tpSE- A THEATER is DISTRICT TREATMENT 9 PLANT uW �yf C'AVTON V OaArp HILLCREST PARK �R uY`(� O V •� ILLCRES EMEN TARY ? {\ SCHOOL O[O. h � MEMORIAL � ENTER I R a�a o � � low tv AlhI � 4 D B H = W P CO W U rR tC MT.DIABLO v NFOX SCHOOL Z � h � BUCHANAN FIELD � ra GOLF COURSE ,• M � E PLE ANT H L fl;� /` I hkt Qt C CURD tiei ` y w4' CONCORD PARK i SHOP sa Y� t4 a r WILLOW CJ h DIABLO VALLEY SHOPP ING COLLEGE i CENTER E SUN VALLEY SHOPPING P CENTER G� I-6