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HomeMy WebLinkAboutMINUTES - 03281989 - 1.79 1-079 TO: Redevelopment Agency FROM: Phil Batchelor Contra Executive Director Costa DATE: March 14, 1989 County SUBJECT: FY 88-89 Redevelopment Agency Budget SPECIFIC REQUEST S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Adopt the attached annual Redevelopment Agency budget for fiscal year 1988-89, in compliance with California Community Redevelopment Law. FISCAL IMPACT Refer to attached budget report details. BACKGROUND/REASONS FOR RECOMMENDATIONS California Community Redevelopment Law (Health & Safety Code Section 33606) requires in part that the Redevelopment Agency adopt an annual budget containing the following information: - Proposed expenditures - Proposed indebtedness to be incurred - Anticipated revenues - A work program for the coming year - An examination of the previous year' s achievements The attached report fulfills the requirements of Redevelopment Law and establishes a framework for implementation of the Contra Costa County Redevelopment Agency Budget for FY 1988-89. Because revenues and expenditures, by law, must be applied to the particular project area in which they are generated, separate budgets, in effect, have been created for the Pleasant Hill, North Richmond, and West Pittsburg Project Areas. The reports also contains information of previous financial transactions of the Agency for comparison purposes and establishes the record for past activities of the Agency. CONTINUED ON ATTACE14ENT: YES SIGNATURE. RECOMMENDATION OF EXECUTIVE DIRECTOR RECO14MENDATIO AG c7 IKE APPROVE OTHER SIGNATURE(S) : 1989h 28, ACTION OF AGENCY ON MarcAPPROVED AS RECOMMENDED X OTHER I VOTE OF COMMISSIONERS X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A AYES: NOES: TRUE AND CORRECT COPY OF AN ACTION ABSENT: ABSTAIN: TAKEN AND ENTERED ON THE MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. cc: Redevelopment Agency ATTESTED March 28, 1989 All other distribution via PHIL BATCHELOR, Redevelopment AGENCY SECRETARY BY , DEPUTY JK:cg cd8/budget.bo CONTRA COSTA COUNTY REDEVELOPMENT AGENCY BUDGET AND WORK PROGRAM FOR FISCAL YEAR 1988-89 INTRODUCTION California Community Redevelopment Law (Health & Safety Code Section 33606) requires the Redevelopment Agency to adopt an annual budget containing the following: - Proposed expenditures of the Agency - Proposed indebtedness to be incurred by the Agency - Anticipated revenues of the Agency - A work program for the coming year, including goals - An examination of the previous year's achievements A) PLEASANT HILL BART ANTICIPATED REVENUES Revenues for FY 88-89 are expected to reach $19,090,000 million (of which $420,000 is tax increments restricted for housing) which includes: - $800,000 in tax increments of which $160,000 is restricted for housing pursuant to Section 33334.2 of Health & Safety Code. - $1,050,000 in developer fees, including 450,000 carry over. - $13,000,000 in developer payments for real property acquisition/ relocation. - $100,000 earnings on investment and real estate. - $380,000 miscellaneous charges for services. - $3,500,000 from 1987 Note Issue proceeds. - $260,000 tax increment fund balance - carry over of restricted housing funds pursuant to Section 3334.2 of Health & Safety Code. PROPOSED EXPENDITURES Proposed expenditures for FY 88-89 total approximately $18,670,000 million. Major expenditures for FY 88-89 will include Public Works contracts of $945,000; property acquisition of $15,000,000; retirement of long term debt in the amount of $1,500,000; debt service on Tax Allocation notes in amount of $450,000; and project professional services of $795,000. INDEBTEDNESS The Agency has incurred approximately $12.5 mill'ion­in- debt as of June, 1988. The major elements of Agency debt include: - $7.5 million Tax Allocation notes issued in December, 1987. - $1.9 million due to County General fund for advances to the Agency. - $1.8 million due to County for property conveyances. - $1.3 million due to Assessment District 1983-1 for an advance from transit fees. In addition the County will provide the Agency with certain administrative services which will accrue as a debt against the Agency. These advances will be repaid from tax increment revenues as soon as practicable. B) NORTH RICHMOND ANTICIPATED REVENUES Revenues for FY 88-89 are expected to be $130,000 including: - $20,000 in tax increments. - $100,000 in Community Development Block Grant funds for housing development. - $10,000 intergovernmental transfers. ANTICIPATED EXPENDITURES Expenditures for FY 88-89 are expected to be: - $100,000 in housing subsidies. - $30,000 in professional services. INDEBTEDNESS The Agency has incurred approximately $100,000 in debt as of June 30, 1988. The major elements include: - $75,000 to the County Flood Control District. - $25,000 to the County General fund for advances from the County. In addition the County will provide the Agency with certain administrative services which will accrue as a debt against the Agency. These advances will be repaid from tax increments as soon as practicable. I C) WEST PITTSBURG ANTICIPATED REVENUES The West Pittsburg Project Area will not receive its initial tax increments until FY 89-90. Approximately $20,000 in County advances for administrative services are expected. ANTICIPATED EXPENDITURES Expenditures of approximately $20,000 are expected for professional services. INDEBTEDNESS The Agency has incurred approximately $68,000 in debt as of June 30, 1988, in- cluding: - $53,000 to the County Flood Control District. $15,000 to the County General fund for advances from the County. cd8/bwkprog.doc i i WORK PROGRAM FOR FISCAL YEAR 1988-89 The work program of the Contra Costa Redevelopment Agency forlFiscal Year 1988-89 is directed at continuing the implementation of the Pleasant Hill BART Station Area Redevelopment Plan and Specific Plan, the initial implementation of recently adopted Redevelopment Plans for North Richmond and West Pittsburg, and the evaluation of the potential for redevelopment in other areas of the County. Specific goals, objectives and tasks of the Agency for Fiscal Year 88-89 are outlined below: I . Pleasant Hill BART Station Redevelopment Project Area: Goal 1: Secure necessary financing to implement the Plan. - A. Secure funds from developers under terms of Disposition and Developer Agreements (DDA's) . B. Continue property transfers as appropriate to expedite receipt of payments. C. Continue to collect reimbursements from developers as called for in DDA's and from utility companies as called for in undergrounding agreements. Goal 2: Complete the Assemblage of Specific Plan Development Areas. A. Finalize Disposition and Development Agreements (DDA's) for Development Areas 3, 4 and 10A, and amend DDA for Development Areas 7A, 7B and 8. B. Complete the acquisition of remaining parcels within the Project Area required to complete development areas. C. Complete vacation and abandonment proceedings on County rights-of-way held in fee. D. Secure property dedications as necessary for planned road improvements. Goal 3: Continue access and infrastructure improvements necessary to allow construction to begin and to serve completed buildings. A. Continue to transfer property as necessary to facilitate road and public improvements. B. Secure property dedications as specified in DDA's or de- velopment approvals. C. Initiate condemnation action where necessary. D. Complete negotiations and secure title to remaining privately-held portion of Souther Pacific right-of-way, necessary to ensure availability of right of way for major traffic arterial . { E. Evaluate need for new rights-of-way and, if necessary, acquire either through dedication or condemnation. F. Complete construction of the following improvements: - Cherry Lane widening - Median landscaping and related improvements - Coggins Drive Safety Path G. Initiate environmental documentation, design and engineering necessary to establish a commuter bike trail along the Southern Pacific right-of-way. Goal 4: Continue to evaluate Specific Plan Implementation. A. Continue to develop Transportation Systems Management Program. 1. Coordinate with Developers Association for program development. 2. Coordinate the implementation of TSM with the completion and occupancy of building. 3. Explore and evaluate new TSM measures. B. Monitor development of child care facilities and programs. C. Assess alternative mechanisms for financing additional traffic improvements such as the roadway in the SP right of way, and other improvements that may be appropriate to enhance traffic conditions on major arterials. II . North Richmond Redevelopment Project Area: Goal 1. Implementation of the North Richmond Redevelopment Plan. A. Monitor and provide support for private development within the Project Area. B. Continue to work with the Project Area Committee in implementing the Plan. C. Complete seven unit infill housing project and initiate other infill housing activities. D. Assist in the preparation and review of a General Plan revision for the North Richmond area. Goal 2. Monitor related public improvements in the Project Area. A. Continue to support the North Richmond By-pass and the work of the Route 93 committee. B. Monitor progress of the Wildcat and San Pablo Creeks Flood Control Projects. III . West Pittsburg Redevelopment Project Area: i Goal 1. Implementation of the West Pittsburg Redevelopment Plan. A. Work with the Project Area Committee in formulating and implementing the Plan. B. Monitor and provide support for private development within the Project Area. C. Pursue and participate in the utilization of other funds that will facilitate public and private activity in the project area. IV. Other Redevelopment Activities: Goal 1: Hire additional staff to assist in adoption and/or implementation of three Redevelopment Projects: Pleasant Hill BART, North Richmond and West Pittsburg. Goal 2: Recommend-adoption of the Oakley Redevelopment Plan by the end of the Fiscal Year. Goal 3: Study other potential redevelopment areas. A. Conduct preliminary studies to evaluate the possibility of utilizing redevelopment in the following areas: 1. Crockett 2. Tara Hills 3. Bethel Island 4. Rodeo B. Establish survey areas in the above areas if appropriate. Goal 4: Provide continued support to County Administration in monitoring existing and proposed city redevelopment projects. cd8/wkprg889.doc EXAMINATION OF ACHIEVEMENTS FOR FISCAL YEAR 1987-88 The Redevelopment Agency, during Fiscal Year 1987-1988, continued to implement the Pleasant Hill BART Station Redevelopment Plan. Substantial progress was made in infrastructure and public improvements. The Agency completed the adoption process for Redevelopment Plans for the North Richmond and West Pittsburg Areas, and took initial steps towards adopting a Oakley Plan. Specifically, the Agency accomplished the following: I . Pleasant Hill BART Redevelopment Project Area A. Development: The Agency completed the Disposition and Development Agreements (DDA's) for Area 10B South for a hotel . During the fiscal year an additional 50,000 square feet of office space was completed in development area 1B. B. Property Acquisition: The acquisition of property necessary to create developable areas was nearly completed this fiscal year. Presently only one parcel remains to be acquired to complete site assemblies. C. The Agency completed the sale of its $7.5 million Tax Allocation notes. The Agency utilized approximately $4 million of the proceeds to retire a debt to the Southern Pacific Transportation Company. D. Infrastructure Improvements: During the fiscal year the Agency substantially completed infrastructure and ci-rculation improvements. The Treat Boulevard, Oak Road, Wayne Drive, and Las Juntas Way improvements were completed and operational . Associated utility and drainage improvements were completed. A Phase II-A Study, a requirement of the Specific Plan, to investigate signal coordination, and other traffic improvements was initiated. E. Plan Amendment: Substantially all of the work required to amend the Pleasant Hill BART Station Redevelopment Plan (and related General Plan and Specific Plan amendments) to add Area 3 as ,a high density multi-family housing site was accomplished. The amended plan will be considered early in Fiscal Year 1988-89. F. Plan Review: Agency staff were lead staff in conducting a review of the Pleasant Hill BART Station Area Specific Plan. Working with the Pleasant Hill BART Steering Committee, the Agency completed and reviewed additional studies relative to traffic conditions, comparative traffic mitigation measures, and the origin/destination of traffic. Additional traffic mitigation measures were identified and will be evaluated for technical and economic feasibility. II . North Richmond Redevelopment Project Area The Agency moved ahead with the adopted Redevelopment Plan to the North Richmond Area during Fiscal Year 1987-1988. A Project Area Committee continues to work with staff to implement the plan. The Agency initiated its first infill housing project. The Agency has acquired the land and has circulated a request for qualifications for a developer. A selection will be made early in FY 88-89. III . West Pittsburg Redevelopment Project Area. The adoption of a West Pittsburg Redevelopment Plan occured in Fiscal Year 1987-1988. A Project Area Committee continues to work with staff in implementing the Plan. IV. Other Redevelopment Activities. Staff began to evaluate the potential for redevelopment in other areas of the County during the fiscal year. The Oakley area received the most attention. Staff continued to support the Administrator's office in the evaluation of city redevelopment projects. cd8/wkprg889.doc • • Item 1 .79 3/28/89 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY TO: Redevelopment Agenc \., DATE: March 23, 1989 , FROM: Jim Kennedy Deputy Director Redevelopment SUBJECT: Budget Message The purpose of this memorandum is to provide a short summary of activities contemplated by the Redevelopment Agency's 1988-89 proposed budget that will be before you on March 28th. The major activities include: 1. Public Works activities: including the completion of infrastructure improvements started in prior fiscal years. Activities include the widening of Cherry Lane, median landscaping, a safety path on Coggins Lane and initial design and engineering relative to the Commuter Bike Trail . 2. Property acquisition: This activity consists of two major elements. First the acquisition of properties within Area 3 in order to facilitate the development of the Park Regency project. All revenue necessary for the acquisition of these properties will be provided by the private developer. The second element is the acquisition of the Hookston Station area. This represents the last privately held piece of the Southern Pacific Right-of-Way. Acquisition is necessary in order to provide for the Bancroft extension. Staff is currently negotiating with the owner of this piece and would intend to reach a negotiated settlement prior to the end of the 88-89 fiscal year. 3. Retirement of long term debt: Agency debt as of June 1988 is approximately $12.5 million. Approximately $3.7 million is due to the County General Fund or to the County for property conveyances. An additional $1.3 million is due to Assessment District 83-1 for an advance from its TSM funds. The proposed budget would contemplate repayment of the principle amount due to Assessment District 83-1 ($1 million) and a portion of the amount due to the County for property conveyances. The amount that the Agency will be able to repay the County will be determined by the price of the Hookston Station property. Under a worse case scenario, it is anticipated that the Agency would be able to pay the County approximately $500,000. Should our negotiations with the owners of the Hookston Station result in a price or property configuration that reduces our cost, this amount could increase. 4. Debt service on a tax allocation notes: In December of 1987 the Agency issued $7.5 million in tax allocation notes. Debt service on these notes is $450,000 per year. 5.- Project professional services: Agency staff, legal expenses, consultants, other County departments and miscellaneous expenses all occur as part of the professional services part of the budget. cc: Phil Batchelor Harvey 3ragdon i I 1 i i jk3/jb/redagcy.mem