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Home My WebLink AboutMINUTES - 04261994 - 1.189 Contra TO: REDEVELOPMENT AGENCY • �, Costa FROM: Phil Batchelor sem' County Executive Director DATE : April 29, 1994 SUBJECT: North Richmond Flood Control Financing SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS COMMIT future North Richmond Redevelopment revenues to cover $400, 000 of the capital costs necessary to complete the Wildcat - San Pablo Creek Flood Control Project, subject to terms; and AUTHORIZE the Chair, Vice-Chair, Executive Director or Deputy Director to execute an Agreement with the Contra Costa County Flood Control District. FISCAL IMPACT No General Funds are involved. The commitment of Agency revenues will permit the Flood Control District to meet a local match requirement necessary to secure approximately $6 million in federal Corps of Engineers funding to complete the San Pablo - Wildcat Creek Flood Control project. BACKGROUND/REASONS FOR RECOMMENDATIONS Background is provided in Exhibit A. The recommendation to commit Redevelopment Agency funds has been approved by the North Richmond Municipal Advisory Council . The above recommendations include the terms and conditions stipulated in Section V, p. 3 of Exhibit A hereto. CONTINUED ON ATTACHMENT: XX YES SIGNATURE : RECOMMENDATION OF EXECUTIVE DIRECTOR RECOM EION OF GENCY CO ITTEE APPROVE OTHER 7 SIGNATURE (S) : ACTION OF AGENCY ON April 26 , 1994._ APPROVED AS RECOMMENDED x OTHER 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 April 26 , 1994 orig: Redevelopment PHIL BATCHELOR, cc: Public Works AGENCY SECRETARY Community Development County Administrator County Counsel BY , DEPUTY JK:1h sral3/nrflood.bos Exhibit A Page 1 of 11 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY DATE: March 17, 1994 TO: North Richmond Municipal Advisory Council FROM: Jim Ke ed Depu Direct - e evelopment SUBJECT: Re uest of tra Costa County Flood Control & Water Conservation District for Re evelo nt Agency Participation in Financing Wildcat- San Pablo Creek Corps of E neers Project I. Background The County's Flood Control & Water Conservation District ("Flood Control") has requested that the Redevelopment Agency finance $400,000 of an approximate $800,000 local share requirement necessary to complete the Wildcat - San Pablo Creek Corps of Engineers Project (Attachment A). The remaining $400,000 of the local share requirement for completion of the project will be covered by the Flood Control District by reducing districtwide planning costs. II. Considerations A number of policy and pragmatic considerations should be kept in mind when-evaluating the proposal for funding the Wildcat- San Pablo Creek Flood Control Project (the "Project"): 1. Failure to complete the Project will result in a considerable portion of the North Richmond area remaining in the federal flood hazard area, therefore development costs and flood insurance costs will be adversely affected; 2. Failure to provide the local match would result in a loss of approximately$5 million in federal funding for the Project; 3. The Agency does not have sufficient funds today to provide the requested funds, however, the Flood Control District has indicated it can cavy the Agency on terms for up to six years; and 4. Redevelopment funding for the Project will result in opportunity costs to the North Richmond community, i.e., the Agency will have to forego funding other projects/programs to fulfill an obligation to fund the Project. - Exhibit A Page 2 Of 11 North Richmond Advisory Committee -2- March 17, 1994 III. Analysis A. Normative Financial Projections The Agency has limited financial resources (present and projected). Attachment B reflects a projection of tax increment revenue through the fiscal year 2000-2001, completed in 1992 when the Agency issued its Tax Allocation Bonds. .Note the assumptions regarding development expectation. Further note that the cost of administering the Agency functions must be borne entirely by tax increment revenues, and that the projects do not provide for any diversion of revenue to the State. B. Optimistic Financial Projections If one assumes two additional major projects come on line prior to the end of the decade (the Erickson facility and Parkway Estates), the Financial Projects are more optimistic (Attachment C). C. Current Commitments The Agency has entered into an Agreement with the County to design/construct the Brookside realignment. This $1.3 million (est.) project is to be funded with bond proceeds (present amount $680,000) and future tax increments or future bond proceeds (estimated $620,000). The North Richmond MAC previously endorsed, and the Agency committed to, the Agency participating in the North Richmond Area of Benefit (AOB) Program by funding up to $675,000 in circulation improvements (Attachment D). The North Richmond MAC has previously expressed a desire to fund employment training/job linkage programs such as OPEN. Agency funds have been programmed in the past, and could be programmed more significantly in the future (up to $200,000 annually over 15 years as recommended by the North Richmond Revitalization Strategy, August 1991). Administration currently utilizes approximately $110,000 annually. This amount will increase with the cost of living/inflation rate. Current debt service on outstanding bonds is approximately $78,000 per year, of which $62,000 comes from the Capital Project Fund and $16,000 from the Housing Fund. IV. Options In view of the Agency's limited funding capabilities, the Flood Control District formulated an alternative funding proposal (Attachment E). The alternative proposal would entail the Agency committing to: 1. A $400,000 capital contribution by the Agency within the next six years; Exhibit A Page 3 of 11 North Richmond Municipal Advisory Board -3- March 17, 1994 2. The�Flood Control District would cavy the full local costs (Flood Control and Agency portion), including interest on borrowed funds, for up to six years; 3. They,Agency would assume its share of the borrowing costs beginning in January, 1996. V. Recommendation Staff recommends^the following: 1. Commit$400,000 in future Redevelopment Agency revenues to financing the completion of the Wildcat- San Pablo Creek Flood Control Project; 2. Agency agrees to bear interest costs on its portion of the local match utilizing ,borrowed funds beginning in FY 1996-1997; 3. The Flood Control District commits to the future sale of APN 408-201-17 (3rd and Brookside) by July 1, 2001 and the allocation of all revenues (less sales expenses) in excess of $ per sq. ft. in the following manner. A. District and Agency interest cost on the $400,000 from July 1, 1994 through July 1, 2001 shall have first claim on said incremental increase in revenue; and B. District and Agency shall share equally the remaining increase in revenue. (Parcel size is 138,956± sq. ft.) 4. Enter into an Agreement with the Flood Control District affecting these business terms. ## Current estimate of $3.50-$4.00 per square foot; actual value to be confirmed via appraissal . JKlh Attachments cc: Board of Supervisors Phil Batchelor Val Alexeeff Mlton Kubicek File D5.1(b) sra13/nrmac.mem Exhibit A Page 4 of 11 CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT DATE: January 11, 1994 North Richmond Industrial Property Owners Association and TO: North Richmond Municipal Advisory Council FROM: Milton" ic�puty Chief Engineer SUBJECT: Request for Redevelopment Agency Participation in Financing Wildcat-San Pablo Creek Corps of Engineers Project The local cost share of the Corps of Engineers Wildcat-San Pablo Creeks Project is significantly under funded. We must find$800,000 in additional local funding,to complete the last contracts on San Pablo and Wildcat Creeks. The purpose of this memo is to solicit your financial support. To date, the Corps of Engineers has completed the channel improvements on both creeks upstream to the Southern Pacific Railroad Company right of way. The improvements provide some relief of flooding for the North Richmond area; however, complete 100 year event protection is not possible until the improvements are extended upstream through the Atchison, Topeka and Santa Fe right of way. The remaining two contracts are scheduled to be advertised for bids in 1994. The total cost for all of the creek improvements is approximately $27,000,000. Of this amount, $21,000,000 has already been expended. The non-federal cost share is approximately 48 percent due to the extensive right of way acquisition and relocations associated with the environmentally sensitive alternative selected for implementation. Thirty percent of this amount must be funded from local sources, i.e. non-state funds. In the planning stage for the project, approximately 1982, we identified four sources for project funding: * Zone 7 Tax Revenue * Assessment District No. 1992-2 * Donated rights of way by Government.agencies owning adjacent lands * Drainage Area 73 Fees Based on the conventional channel system envisioned in 1982, these funding sources were adequate. However, as the project moved through the local and federal approval process, environmental enhancements were added increasing the amount of project rights of way. Further, the concrete channel was eliminated at Verde School, thereby, significantly increasing our relocation costs, i.e. school sewer line, play fields, access bridge and alternative access road. These changes increased the non-federal cost share from approximately 30 percent to 48 percent. Exhibit A Page 5 of 11 North Richmond Municipal Advisory Council January 11, 1994 Page Two To date, we have expended approximately $4,200,000 on the local share of the non- federal costs. Of this amount, $1,600,000 represents the increase in local costs resulting from the change in project scope. This cost has been temporarily covered by loans from other Flood Control entities that must be repaid. This debt is offset by$800,000 due from the State of California federal flood control project subvention program and approximately $800,000 in surplus property in the project area. However, this leaves no funding for completion of the last two contracts. We need $800,000 to meet the local share of the non-federal costs associated with contracts 3 and 3a. On November 18, 1993, we met with the Redevelopment Agency staff to discuss this issue. We recognize the Agency's limited funding capability. However, we believe some participation by the Redevelopment Agency is appropriate. If the redevelopment process is going to be successful, the redevelopment area must be flood free, outside of the 100 year flood plain. If the Corps of,Engineers Project is not finished, the area will still be subject to flooding. This will impact the types of development that can occur and the tax increment to be derived from those development. We respectfully request your support for the Redevelopment Agency to absorb $400,000 of the funding shortfall. To ease the Agency's cash. flow, we would be willing to recommend to the Board of Supervisors that the District continue to refinance the funding shortfall to January 1, 1998, with the understanding that the interest costs for refinancing after January 1, 1996, will be born by the Agency. MFIM.drg c:RedvRefat1 cc: P. Batchelor, County Administrator V. Alexeeff, GMEDA Director J.M. Watford, Public Works Director J. Kennedy, Deputy Community Development P. Harrington, Flood Control I I Exhibit A Page 6 of 11 ATTACHMENT B _. . NORMATIVE� PROJECTION OF ,TAX INCREMENT REVENUE North Richmond Redevelopment Project Area GROSS TAX ADJUSTMENTS TO TAX INCREMENT NET ANNUAL FISCAL YEAR INCREMENT (a) Housing Debt Service TAX INCREMENT 1994 $154,000 $30,800 $78,000 $45,200 1995 $181,000 $36,200 $78,000 $66,800 1996 $348,000 $69,600 $78,000 $200,400 1997 $352,000 $70,400 $78,000 $203,600 1998 $356,000 $71,200 $78,000 $206,800 1999 $360, 000 $72,000 $78,000 $210,000 2000 $364,000 $72,800 $78,000 $213,200 2001 $368, 000 $73,600 $781-000 $216,400 (a) Major development assumption is the the IRRF Station will come on line in ,FY 1996 Source: Katz-Hollis Coren & Associates 1992 Tax Increment Projections Exhibit A Page 7 of 11 ATTACHMENT C OPTOMISTI'C. .PROJECTION OF. TAX. .INCREMENT REVENUE North Richmond Redevelopment Project Area GROSS TAX ADJUSTMENTS TO TAX INCREMENT NET ANNUAL FISCAL YEAR INCREMENT (a) Housing Debt Service TAX INCREMENT 1994 $154,000 $30,800 $78,000 $45,200 1995 $1'81,000 $36,200 $78,000 $66,800 1996 $4.23,000 $84,600 $78,000 $260,400 1997 $477,000 $95,400 $78,000 $303,600 1998 $481,000 $96,200 $78,000 $306,800 1999 $485,000 $97,000 $78,000 $310,000 2000 $490,000 $98,000 $78,000 $314,000 2001 $490,000 $98,000 $78, 000 $314,000 (a) Major development assumption is the the IRRF Station will come on line in FY 1996, The Erickson facility in 1997, & Parkway Estates in FY 1996 (50%) & FY 1997 (50%) . Source: Katz-Hollis Coren & Associates 1992 Tax Increment Projections, modified & updated by Contra Costa County Redevelopment Agency s ` Exhibit A Page 8 of 11 a r Contra /. Costa TO: REDEVELOPMENT AGENCY n� .►` 1L J FROM: Phil Batchelor Executive Director DATE: January 11, 1994 SUBJECT: Financial Participation Agreement between Contra Costa County and County Redevelopment Agency - North Richmond Area of Benefit. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE and AUTHORIZE the Deputy Director - Redevelopment to execute a contract with Contra Costa County for the design and construction of various road improvements located in the North Richmond Redevelopment Project Area. FISCAL IMPACT ' No General Fund money will be used on these projects. The total estimated cost of roadway improvements to be undertaken by the County 1 under the North Richmond Area of Benefit program is $5,576,000. The Redevelopment Agency will reimburse the County North Richmond Area of Benefit for expenditures up to $675,700 out of its tax increments or bonded indebtedness from the North Richmond Redevelopment Project Area. The projects will be included in the adopted Agency budget for the fiscal year in which the project would be implemented. The remaining $4,900,300 will be paid for by the North Richmond Area of Benefit ($3,767,300) and .developers as fro Cage improvements ($1,133,000) . CONTINUED ON ATTACHMENT: .—. YES SIGNATURE: `RECOMMENDATION OF EXECUTIVE DIRECTOR RBCDPAENDAT OF AGENCY COMMITTEE ` APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON January 11, 1994 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ASSENT ZL ) 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 11, 1994 cc: Community Development PHIL BATCHELOR CAO AGENCY SECRETARY County Counsel Public Works BL/jb/finagnr.bos By 414,Oa DEPUTY Exhibit A Page 9 of 11 BACKGROUND/REASONS FOR RECOMMENDATIONS A major redevelopment activity in the North Richmond area is to _.improve and..upgrade. the existing infrastructure and ,circulation patterns. The Redevelopment Agency is assisting the North Richmond Area of Benefit (N. R. AOB) to allow the Area of Benefit fees to be kept low to stimulate development. Redevelopment Agency participation would lower the single family Area of Benefit rate by $340, $1.05 lower rate for commercial, and $0.30 lower rate for industrial development. The roadway improvements will visually enhance the area and encourage industrial development throughout the industrial section of the North Richmond community. The North Richmond Municipal Advisory Council approved this program noting that all improvement would be financed by the Agency and N. R. AOB. r f' Exhibit A Page 10 of 11 PUBI..IC WORKS DEPARTMENT CONTRA COSTA COUNTY DATE: December 2, 1993 TO: James Kennedy, Deputy Director, Community Development FROM: Milton F. Kubicek, Deputy Public Works Director SUBJECT: North Richmond Redevelopment Agency Funding for Wildcat-San Pablo Creeks Project Based on'our November 18, 1993 meeting regarding the Redevelopment Agenc_y's limited funding capability, we would like to present the following alternative scenario: 1. The District will retain the surplus properties for future sale after the North Richmond Bypass and the Corps of Engineers Project are completed; 2. The District will absorb the loss of$400,000 over an six year period by reducing the District planning efforts and assistance.to others; 3. The Redevelopment Agency will absorb $400,000 of the funding shortfall by executing an agreement with the District indicating the Agency's willingness to participate; 4. The District will continue to refinance the funding shortfall and interest costs for a period of six years; 5. The Redevelopment Agency shall bear the interest costs on its shore of the funding shortfall being refinanced starting on January 1, 1996. The District's revenue has been significant reduced over the past two years through the loss of Special District Augmentation Funds, and our contribution for County Assessor, Auditor-Controller, and Counsel costs has increased. These changes have dictated a significant reduction in the District's program. Our absorbing a portion of the Wildcat-San Pablo Creeks funding shortfall will require further program reductions, approximately ten percent. This.additional Deduction in the District's program is unacceptable; however, not meeting our commitments for the Wildcat-San Pablo Corps of Engineers Project and the loss of approximately $5,000,000 in federal/state channel improvements is more unacceptable. The District has never participated in the construction of capital improvements. In the past, all local funding for capital improvements has been generated within the watershed being served or as a grant from an outside agency, ke. County Redevelopment, park district, city, etc. The above is a significant deviation from past practice, and in our opinion sets a bad precedence. Exhibit A Page 11 of 11 J. Kennedy _ December 2, 1993 Page Two We believe some participation by.the .Redevelopment Agency is appropriate. If the redevelopment process is going to be successful, the redevelopment area must be flood free, outside of the 100 year flood plain. If the Corps of Engineers Project is not finished, the area will still be subject to flooding. This will impact the types of development that can occur and the tax increment to be derived from those development Finally, we want to confirm the meeting on this matter with Phil Batchelor on December 10, 1993, at 10:30 a.m. in his office. MFK.ly c.WCSP.t12 CC.* P. Batchelor, County Administrator V. Alexeeff, GMEDA Director J.M. Wa/ford, Public Works Director z