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HomeMy WebLinkAboutMINUTES - 03101992 - 1.55 r' : • 5 5 ' Contra Costa TO: REDEVELOPMENT AGENCY County FROM: Phil Batchelor a, Executive Director 4 DATE. • March 3 , 1992 SUBJECT: Accept the North Richmond Redevelopment Strategy. SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept the North Richmond Redevelopment Strategy prepared for the North Richmond Redevelopment Project Area. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS In December, 1991, the North Richmond community appeared before the Board of Supervisors to request their help in revitalizing the area. On January 14, 1992, the Board approved the recommendations of the County Administrator to address the problems in the North Richmond area. The recommendation list included a request to the Redevelopment Agency to prepare a short- mid- and long-term Redevelopment Strategy for the North Richmond community. The attached strategy has been reviewed and approved by the North Richmond Redevelopment Project Area Committee on February 13 , 1992 . This Strategy consists of four program component areas: (1) administrative; (2) industrial and employment related; (3) community facilities; and (4) housing rehabilitation and new construction, which are in the Agency's ' jurisdiction of service and intervention. An estimated budget and funding plan for the projects in this Strategy are also included in this study. In brief, the costs of implementing the recommended short- and mid-term projects greatly exceeds the projected tax revenue stream. The Agency is explori g other financing sources and identified projects. CONTINUED ON ATTACHMENT: YES SIGNATURE: 1G7Jw✓� RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMEND ON OF AG16NCY COMMI EE APPROVE OTHER SIGNATURE(S) ACTION OF AGENCY ON March 10,_ 1992 APPROVED AS RECOMMENDED �_ OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X , UNANIMOUS (ABSENT III ) 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 81_S /jb/nrstratg.bos ATTESTED March 10, 1992 PHIL BATCHELOR, AGENCY SECRETARY BYrLDQ1AJ DEPUTY 4 NORTH RICHMOND REDEVELOPMENT STRATEGY The Contra Costa County Redevelopment Agency (the "Agency" ) , at the request of the County Administrators Office, has prepared a project specific redevelopment strategy for the North Richmond Redevelopment Project Area. This along with other components prepared by the County Building Inspection, Public Works, and Sheriff departments will comprise a comprehensive strategy to address current problems in North Richmond. The proposed redevelopment strategy consists of four program component areas : ( 1 ) Administrative; (2 ) Industrial and Employment Related; ( 3 ) Community Facilities; and - ( 4) Housing Rehabilitation and New Construction, which are in the Redevelopment Agency' s jurisdiction of service and intervention. A North Richmond Revitalization Study was prepared for the Agency in 1991 . It identified, analyzed and prioritized all necessary improvement projects to be undertaken by the Agency. In addition, it contained a detailed analysis of anticipated tax increments-- given assumptions of a fairly optimistic development climate. This strategy is based, in part, on the recommended timing and implementation of improvement projects identified in this study. Redevelopment objectives and goals for the improvement projects are detailed for each of the four program component areas relative to recommended short-, mid- and long-term implementation plans . Short-Term Projects are projects recommended to be initiated prior to 1995 . Mid-Term depicts projects to be initiated between 1995 and 1997 , and Long-Term represents all projects recommended to be initiated post 1997 . An estimated budget and funding analysis has been prepared which shows that the cost of realizing the short- and mid-term goals vastly exceeds the projected tax revenues . Thus, this report also includes a list of alternative financing sources . 1 . ADMINISTRATIVE The Agency will work to create a comprehensive redevelopment plan to facilitate implementation of the proposed improvement projects . To accomplish this objective, the Agency should initiate the following administrative projects . Short-Term a . Aid in the formation of a Municipal Advisory Council (MAC) . The Agency recommends creating a MAC for the North Richmond community and dissolving other community based work groups ( including- .the redevelopment Project Area Committee) . At present there are numerous active community work groups . Typically, these groups are comprised . of the same individuals with similar goals, concerns and objectives . This leads to duplication and confusion. A MAC could incorporate the functionsof these groups and, at the same time, provide one source of contact for the community. The MAC would report directly to the Board of Supervisors, which would: streamline all communication. b. ..:Create a . •North Richmond Action Groupe. It has been ;-suggested that COMET, ajoint City of Richmond and County group, formed to upgrade the community, 'speerhead addressing the North Richmond community' s' problems . COMET,. -however, tends to address aesthetic problems 'and often provides a stronger benefit to .the City than the County. The North Richmond community needs a concentrated County effort to adequately attend to the multitude, of problems which the COMET-• group does not address . Therefore, a North Richmond Action Group should be formed and include the following: County Redevelopment Agency, Public Works, Sheriff, Private Industry Council, Community Services, Health Services,, Social Services, Career Development, Administrators Office, 'Building Inspection,. Housing Authority and - North Richmond ' Neighborhood House. Given the Agency's future financial capacity for the North Richmond community, Agency staff . will take the lead role in the Action Group. 1 ) A subcommittee of the Action Group should continue working with the C'OME'T group. 2.) A Housing Action Group subcommittee should be formed including building inspection , redevelopment, housing authority and rental, rehabilitation to direct 'a strategic housing plan (components of said plan to be addressed in number. 4 of this report) . 3) A Neighborhood Safety subcommittee should be formed including the sheriff, redevelopment, community services, health services, social services , administrators office, and North Richmond Neighborhood House to create and implement a comprehensivesafety plan in coordination with increased police protection of the area . This' plan should include, but. not be limited, to, the- following: (a)' . Neighborhood Watch ' Program. Organizing residents • and providing appropriate : linkages to .the sheriff ' s station. (b) Youth Services Programs . Create . a range of youth programs consisting of structured sporting events ( i . e. basketball and softball. leagues ) , education and afterschool/latchkey programs . (c) Young Adults, -Program. Create education, job training and sports programs to provide alternatives to gang and drug related activities . (d) Create a volunteer funding committee to solicit funds and organize fund raising events to finance the above referenced neighborhood safety programs . c. Create a North Richmond Area of Benefit (AOB) fund. Currently, the West County AOB priority list does not contain projects in the North Richmond community even though a majority of the infrastructure is substandard. While the AOB list is in the process of being revised, several large scale projects slated for the community in the next year will provide a sizable amount of funds with no guarantee they will be reinvested into North Richmond. Thus, it is necessary to create a North Richmond AOB to provide a nexus connection between the monies collected and needed improvement projects . 2 . INDUSTRIAL AND EMPLOYMENT RELATED DEVELOPMENT The Agency will work to assist private property owners and developers in the redevelopment of parcels designated for industrial and employment related development. Short-Term Projects a. Hazardous Waste Sites Streamlined Remediation Plan. The overlay , of federal, state and local agencies which monitor or enforce the remediation of hazardous waste sites causes confusion about jurisdictional control and often results in the inability to rectify the problem. The Agency could bolster economic development best by facilitating relationships with the appropriate agencies to streamline the process . b. Marketing Program. A strong marketing program to attract new businesses , generate revenue and change the area ' s image should be established once some infrastructure improvements have been initiated. The marketing program should include: 1 ) An inventory of existing businesses and their function, available land and proposed projects . 2 ) Information about job training programs, their scope, and the availability of skilled workers . C . Employment and Job Training Assistance. A comprehensive job training and dissemination/information system is necessary to link residents with employment opportunities . This program should be designed, and initiated in the short-term with some components coining on line in the mid- to long-term. The following steps are essential to achieving this goal : 1 ) The Board of Supervisors adopted, on April 3, 1984 , an "initial resource" policy for employers to assure continuing. employment opportunities to economically disadvantaged and unemployed. residents of the County. The North Richmond Jobs Policy applies to any project funded in wholeor in part by County or Agency funds, or any other funds the County expends or administers, or which the. County is a signatory to the construction contract. County assisted projectssuch as land write-downs, or grants of land, waiving of fees, zoning .variances , use of right-of-ways, exceptions to municipal ordinances, , or ..an rexception from _ environmental impact stuy and report requirements can be included under the provisions of an initial resource policy.. 2 ) Create a central clearinghouse for employment opportunities and availability of skilled workers . Locally based non-profits could serve as the employment information/dissemination ..source. 3 ) : Create a career development program for North Richmond , industries/businesses . Since the Agency works with employers during the project application stage and is knowledgeable about future employment needs; a career development program would provide the much needed link between new job creation with training and employment opportunities for residents . Further, a link should be made with the Community College District to provide classes and training, for specific skills . Responsibility for this program needs to be determined. 4 ) Creation of a revolving loan fund to support employment related expenditures . For example, the .loan fund could help residents. pay union dues and/or purchase job required clothing with . an. agreement that the funds be repaid when the worker receives a paycheck. 5 ) Develop a public and private sector information campaign to develop an awareness of the County' s employment goals for the North Richmond project area , relative to hiring, contracting, and subcontracting practices . This campaign should include' an outreach component to the North Richmond Industrial and Agricultural Association. r ' Mid-Term Projects a. Road, drainage, and water delivery improvements along Pittsburg Avenue and Garden Tract Road. Improvement of these access roads and infrastructure will help attract private investors, encouraging more intensive uses in this area. b. Hazardous Waste Site Assessments . An accurate assessment of the amount of toxics in the project area may be necessary to attract investors/developers . C. Rheem Reuse Development Plan and EIR. The abandoned Rheem plant is a blight on the community and warrants mid-term attention. The Agency should fund a study to determine the possible reuse of this site. Long-Term Projects a. Property acquisition, road, drainage and sewer improvements along Gertrude Avenue and McCoster Lane. Redevelopment of the southernmost parcels in this area, currently occupied by auto wrecking businesses, requires land assembly, clearing, and major road and sewer improvements . a. The Agency should be prepared to implement the reuse recommendations for the Rheem plant site. b. Storm Drain Master Plan. The area north of Parr Boulevard lacks a storm drainage system and is in need of a master plan. Project implementation should be coordinated with construction of the Richmond Parkway; once the right-of-way has been 'acquired but prior to actual construction. C . Road widening and drainage improvements on Parr Boulevard. The area north of Parr Blvd. will require infrastructure improvements to open it up to development with the completion of the Richmond Parkway. d. Road and utility improvements to Garden Tract Road and Goodrick Avenue north of Parr Blvd. Infrastructure improvements are required to provide full ' access to the newly developable land ,when the Richmond Parkway is completed. e. Road and utility improvements to Pittsburg Avenue, east of the Richmond Parkway, and Central Street . Vacant parcels in this area may be developable without Agency assistance. The Agency, however, should be prepared to improve the circulation and provide utility connections if private development alone cannot improve these areas . Y } f . Roadway, drainage and sewer improvements to Brookside Drive east of Third Street. These improvements will increase the development potential of the land J n the central portion of the project area. g. Create and implement a revolving loan fund for assisting development of both small businesses and the neighborhood commercial district. 3 . COMMUNITY FACILITIES The Agency will facilitate the development of neighborhood improvements and amenities in the existing residential neighborhood in the project area. Short-Term Projects a. Assist the City of Richmond in the development - of park/ballfield on the parcel adjacent to Verde School . The City has set aside ' funds and is preparing grant applications for the development of this site. The Agency may assist the City by providing letters of projectsupport for funding applications, linking residents with development activities, etc . b. Identify parcels and initiate redevelopment of parcels appropriate for new development or potential reuse (especially non-conforming and unwanted uses) . This project should coincide with the concentrated activity housing strategy as identified below. C . Continue area beautification and clean-up activities through the COMET group.` Mid-Term Projects a. Assist in the creation of a community self-help program to attend to - the various racial, criminal and toxics issues in the community. Long-Term Projects a. Locate and develop open space sites .' At present, there are no parks, trails and recreation areas within the project area. b. Assist in the construction of residential street improvements and landscaping. This project should not be initiated until significant new development and - rehabilition of the existing residential district has been completed. 4 . HOUSING REHABILITATION AND NEW CONSTRUCTION k' The Agency will work to upgrade the existing housing stock and to expand the supply of decent, safe and sanitary affordable housing in the project area. Short-Term Projects a. Create a Housing Action Subcommittee, comprised of the County Redevelopment, Building Inspection, Housing Authority and Rental Rehabilitation departments, to create and implement a concentrated housing effort. The goal would be to concentrate efforts on a ten-block- targetted en-blocktargetted area, around the Agency' s Giaramita and 5th Street 7-unit infill housing project site, which would include: 1) Abating unsafe and vacant structures, clearing and securing lots, and developing a redevelopment program. for said parcels . Establish a revolving loan fund with funds to be contributed from the various departments to finance these activities . The cost of the abatement activities will be included on the property owner' s property tax bill to help ensure repayment. Foreclosure proceedings will be initiated on owner' s not paying the property taxes and the land would be reconveyed for affordable housing. 2 ) Actively seek a development team to create a financing program and development scheme for the development of an affordable senior/family homeowner and rental housing project. Submit a CDBG application for the 1992/93 fiscal year if appropriate. 3) Actively target this area for a concentrated rental rehabilitation and homeowner rehabilitation program. - 4 ) Design and implement a program to bring vacant rental units up to code prior to allowing occupancy by new tenants . 5) Intensify code enforcement activities ; offer rewards for, and monitor compliance of, identified code enforcement violations . 6 ) Endeavor to build the capacity of the Community Housing Development Corporation of North Richmond (a newly established community-based nonprofit housing developer) to capitalize on available housing programs . For example, the HOME housing block grant program .has a 15 percent set-aside of its funds for community housing development organizations . ' 1 b.. Expand the 'supply of low and moderate income (up to 120% of median) housing units.. Funds in the 20% Housing Set- Aside can be used to assist in the financing of, provide subsidies for, and promote the development of affordable housing. C. Identify and begin redevelopment of parcels appropriate for potential reuse; especially parcels with existing non-conforming and unwanted uses : Mid-Term Projects a. '• The Agency should continue implementing the parcel reuse recommendations . b. The Agency should- continue. in the expansion of low and moderate income (up to 120% of median) housing units . Long-Term Projects. a. Develop a revolving rehabilitation loan and grant fund for owners of ' low and. moderate income, (up to 120% of median) housing. BUDGET ANALYSIS The Cost Estimates Analysis ( immediately attached) details the costs for implementing the projects identified throughout this strategy . as well as the, anticipated tax increment stream. It should. be noted, however', that the cost analysis does not contain provisions for future projects deemed worthy of financial assistance. In brief, the costs of implementing the ' ' short- and mid-term projects greatly exceeds the projected . tax increment revenue stream. As a -result, the Agency is exploring other financing sources which include: Mello-Roos Community Facilities District; Tax Allocation Escrow Bonds; , foundation grants; and the County' s Challenge Grant program. # REDEVELOPMENT STRATEGY COST ESTIMATES ANALYSIS Proposed Project Short-Term Mid-Term Long-Term Cost Cost Cost ----------------------------------------------------------------------------- Hazardous Waste Remediation Plan Marketing Program 225, 000 250,000 430,000 Employment/Job Training 600, 000 665,000 2 ,200,000 Park/Ballfield COMET Activities 70,000 80,000 500,000 Low/Moderate Income Housing 600, 000 700, 000 9,000,000 Hazardous Waste Site Assessments 700,000 Rheem Reuse Plan 185,000 Pittsburg Ave. & Garden Tract Rd. Improvements 375, 000 Gertrude Ave. & McCosker Lane Improvements 3 , 800, 000 Storm Drain Master Plan & Improvements 450, 000 Parr Blvd. Improvements 450, 000 Garden Tract Rd. & Goodrick Improvements 550, 000 Pittsburg Ave. , east of Parkway, & Central St . Improvements 210, 000 Brookside Dr. Improvements 660 , 000 Small Business Revolving Loan Fund 750 , 000 Open Space Sites 350 , 000 Residential Streets Improvements 600, 000 Housing Rehabilitation Loan/ 2 , 000, 000 Grant Fund ------------ ------------ ------------ SUBTOTALS $1 , 495, 000 $2 , 955 , 000 $21 , 950 , 000 PROJECTED TAX INCREMENT REVENUE ( Present Value) $901 , 463 $'1 , 648 , 311 . $54 , 592 , 619 SURPLUS ( SHORTFALL) ( $593 , 537 ) ( $1 , 306 , 689 ) $32 , 642 , 619