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HomeMy WebLinkAboutMINUTES - 06271989 - T.7 T. 7 TO: REDEVELOPMENT AGENCY ,.}}� FROM: PHIL BATCHELOR, Costa EXECUTIVE DIRECTOR County DATE: May 25, 1989,.,._.. . ,, ..... : ...:. . .... .... CD SUBJECT: Biennial Public Hearing on the Pleasant Hill BART, North Richmond and West Pittsburg 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 and West Pittsburg 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 returned to the Agency with .appropriate changes. CONTINUED ON ATTACffi4ENT: % YES SIGNATURE: / _ RECOMEWDATION OF EXECUTIVE DIRECTOR _RECOMMENDATION Pr AGENCYTTEE APPROVE OTHER ACTION OF AGENCY ON .Tuna 97 14A9 APPROVED AS RECOMMENDED OTHER / This being the time heretofore noticed for the biennial hearing on the Pleasant Hill BART, North Richmond and West Pittsburg Redevelopment Plan as required by Community Development Law, James Kennedy, Redevelopment Director, presented the staff report on the above named plans. The public hearing was opened and no one appearing to testify, the public hearing was closed. On recommendation of Supervisor Torlakson, IT IS BY THE BOARD ORDERED that the biennial report on Redevelopment Plans for Pleasant Hill BARTD, North Richmond and West Pittsburg project areas is ACCEPTED. 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 ATTESTED June 27, 1989 All other distribution via PHIL BATCHELOR, Redevelopment AGENCY SECRETARY BY , DEPUTY grll/jb/pubhrgnr.bos Att.achident. .l Contra Costa County Redevelopment Agency BIENNIAL REPORT 1989 Prepared by Contra Costa County Community Development Department 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 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 three active Redevelopment Plans: Pleasant Hill BART Station Area, North Richmond and West Pittsburg. Separate discussion of each Project Area are 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 subregional 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 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 $800,000 in tax increment revenues in fiscal year 1988-89. In addition, the Agency was responsible for administering over $18 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 $12.5 million in debt as of June 1988. 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. 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. 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 construction of a major arterial within the Southern Pacific right-of-way is currently in the preliminary design stages. The Agency is working with adjacent jurisdictions through the mechanism of the Pleasant Hill BART Station Area Steering Committee to evaluate numerous other infrastructure improvements particularly traffic related 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. Nearly 500,000 square feet of commercial development and over 300 residential units have been completed. The remaining private development has been approved or has vesting development rights per this specific plan. An additional residential project of 200 units is also proposed within the project area. These developments are more fully described in Exhibit A, the Pleasant Hill BART Station Area Fact Sheet. 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. 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. II . 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 did not occur and as a result no revenues from this source have been received. The Project Area is looking to receive revenues of $100,000 from Community Development Block Grant funds and $10,000 in intergovernmental transfers. The total of these revenues will be expended for housing subsidies and professional services related to a 7-unit affordable housing development. Thus, no existing debt will be retired in the next year. The North Richmond Project Area has incurred approximately $100,000 in debts as of June 30, 1988. This indebteness is made up of a loan from the Flood Control District ($75,000) and advances from the County General Fund ($25,000) . 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 $219,000 in two Community Development Block Grant allocations to facilitate a 7-unit for-sale affordable housing development. A 33,740 square foot parcel has been acquired and a Disposition and Development Agreement (DDA) executed with a Developer. 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 of $65,000 for a Revitalization Study. This study will focus on both the North Richmond and West Pittsburg Project Areas. The study should be completed by the end of calendar year 1989. 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 seen the beginning of a flood control project that will channelize San Pablo and Wildcat Creeks. This project, while still on going, will allow the removal of adjacent lands from the flood plain. The result will be the potential for 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. E. Private• Sector Activities. Since the 1987 adoption of the Redevelopment Plan there has been some new residential development but no commercial or industrial activity. The residential development has been primarily manufactured housing. Approximately 9 duplexes and 2 single-family detached homes have been constructed. F. Goals and Objectives. The North Richmond Project Area should see a fair amount of development activity both public and private, during the next year. 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 thehousing stock. The high level of interest in manufactured housing should continue. The Agency hopes to produce a Revitalization Study that will serve as a definitive planning document for private development. Finally, it is hoped that at least one of several potential industrial projects will be developed. 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. 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 occuring. B. Financial Status. The West Pittsburg Project Area is not eligible for a distribution of tax increment revenues until the 1989-90 tax year. Thus, the Agency will not realize any revenue until November, 1989. It is estimated that the first years increment will be about $60,000. The West Pittsburg Project Area has incurred a debt of approximately $68,000 as of June, 1988. This debt is made up of a $53,000 loan from the Flood Control District and $15,000 in 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 not available. 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 will be 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 . The Agency has also received a CDBG allocation of $65,000 for a Revitalization Study. This study will focus on both the West Pittsburg and North Richmond Project Areas. The study should be completed by the end of calendar year 1989. 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. Contra Costa County Public Works Department through the West Pittsburg Area of Benefit hopes to start construction of the Willow Pass Road improvement program in 1989. This project should generate renewed interest in development along West Pittsburg' s main commercial artery. The Contra Costa County Housing Authority has. recently sought application for a 3,800 square foot child care facility to be located 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. Since adoption of the Redevelopment Plan in 1987 no major development has occured in the Project Area. However, there appears to be an increasing interest in both commercial and residential development since the beginning of 1989. This interest may be 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 Agency' s Revitalization Study and participation in the Canal Road improvements should have a spillover effect in this area. The County's Area of Benefit Program should also have a major impact on development activity. If the Willow Pass Road improvements are begun as scheduled, the Willow Pass corridor should see new development 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. 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) , and the West Pittsburg Redevelopment Plan (1987) 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 sacrifice property tax revenue over the short term 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. GER:cg grll/biennial .rpt