HomeMy WebLinkAbout01/17/1989, 4 - REQUEST FROM THE BOARD OF DIRECTORS OF THE BUSINESS IMPROVEMENT ASSOCIATION (BIA) REQUESTING THE CR MEE7 AGENDA
DATE -JAN ' tle11E:rv11 #
city of SAI ! tuis oBispo
990 Palm Street/Post Office Box 8100 • San Luis Obispo. CA 93403-8100
January 9. 1989
MEMORANDUM
To: City Council
From: John Dunn. City Administrative Officer
Subject: Request from the Board of Director?o ' lthe Business Improvement
Association (BIA) requesting the creation of a local
redevelopment agency to address downtown vitality issues
Recommendation:
The City Council should hear the presentation and, if you concur with the
concept, request staff to research the procedural steps involved in
creating a redevelopment agency and project, and report back to the City
Council .
Discussion:
The City Council has received a resolution adopted by thF BI• Board of
Directors which asks that the Council consider the implementation of a
redevelopment process in order to produce tax increment financing which
could be used to accomplish certain objectives in the downtown area in the
areas of promotion, beautification, parking, housing, ei.,;zinsion of
cultural facilities and preservation of historic architecture.
The redevelopment process is set forth in State law, the Community
Redevelopment Law (Health & Safety Code, § 33000 et seq. ) . The State
law prescribes how to create a redevelopment agency, select an appropriate
project, and implement the redevelopment process.
Many communities in California have used the redevelopment process to
their advantage. However, in the past there has been a great deal of
confusion between the former Federal program and the State law. The
Federal program made extensive use of Federal grants and often involved
extensive acquisition, relocation, demolition and property resale. The
State law provides no State grants, and the community chooses its own path
in redevelopment as long as that course is consistent with the law.
As the BIA resolution states, the principal advantage of the Cilly's use of
the redevelopment process is the accrual and use of tax increme.-.t
financing. The "increment" is the growth in property taxes from the
"frozen base" (the base year) which may be used for the legitimate
purposes of the redevelopment process. Under current State law, there
must be a 20% set-aside for housing, which amount must be used within the
community (not necessarily within the redevelopment project area) for
purposes of creating low- and moderate-income housing.
RECEIVED #441-1
JAN _ 91989
CrrVCLVtK
SMU1608SPO.CA
City Council
January 9, 1989
Page 2
The important thing to realize about municipal use of redevelopment is
that the law, both statutory and as interpreted by the courts, provides a
rigorous legal framework for the application of the process, and that all
actions taken are the result of local decision making, with input from
those most affected as well as from the entire community. The agency's
decisions regarding the program are made in the same public forum and in
the same way as are other decisions regarding the City. Though the City
Council and the redevelopment agency would be two separate legal entities
in order to accomplish the purposes of redevelopment, the City Council
could choose to constitute itself as the redevelopment agency, and to use
City staff as agency staff..
A major step in getting involved in the redevelopment process is to
perform a "feasibility study" to determine whether sufficient financial
benefits would result from use of the process and whether the Council can
make the necessary findings of "blight" which are very broadly used.
At this point it is most important to carefully listen to the
presentation of rep-esentatives from the Business Improvement
Association. If the City Council concurs that there may be merit in the
proposal, the appropriate action would be to refer the matter to staff to
put together a report describing the basic parameters of the State law and
the related proredu^al steps. We will then present this to you for your
information, and for your further discussion of the matter with downtown
representatives.
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DOWNTOWN SAN LUIS OBISPO
BUSINESS IMPROVEMENT ASSOCIATION i Denotes action by Lead Pew=
i Respond by:
Wcouncil
MEMORANDUM IVCAO
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TO: John Dunn,,CAO k ng.
L� er A
RrAt. &V-4EX—
FROM: Dodie Williams, BIA 7fA(W&A,7-AR1
ia'7, O.SS
DATE: December 16, 1988
SUBJECT: BIA Proposal for Local Redevelopment Agency
At the November 8 BIA board meeting, a presentation was made
to the board recommending establishment of a San Luis Obispo
redevelopment agency. The recommendation came from the BIA
Parking Committee. It is felt that such an agency is
essential to the continued commercial success of downtown
San Luis Obispo, which is suffering increased competition
that it cannot effectively combat without the addition of
larger retail businesses.
Following the presentation, a proposed motior �-.as submitted,
to be forwarded to the City Council for its review. After
some discussion, the board approved the conce.rt.. and
acknowledged the necessity of such an agency, m.. motion was
unanimously passed to forward the enclosed proposal to the
City for review by both staff and the Council.
If you have any questions or comments, please call.
Enclosure
RECEIVElid
M-G- 21 1=
low
WY CLERK
SANLU15095P0.CA
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P.O. Box 1402, Son Luis Obispo, CA 93406 (805) 541-0286
t
BIA PROPOSAL
FOR A
SAN LUIS OBISPO REDEVELOPMENT AGENCY
WHEREAS, it appears tax increment financing would
improve the ability of the Downtown Business Improvement
Association to accomplish its objectives in the areas of
Promotion, Beautification and Parking; and,
WHEREAS, such financing would improve the City' s
ability to achieve its goals in the area of housing and
expansion of cultural facilities and preservation of
historic architecture; and,
WHEREAS, such financing is available only- through
a redevelopment agency; and,
WHEREAS, the City Council would act as the Board
of Directors of such an agency, thus assuring that such an
agency would remain in compliance with the City' s goals for -/
downtown; and,
WHEREAS, the challenges to downtown in the areas
mentioned above and from other communities in our service
area which have such agencies, such as Pismo Beach, Paso
Robles and Santa Maria, plus those considering formation of
such agencies, such as Los Osos and Morro Bay, will make it
more difficult for the City and the Business Improvement
Association to meet their goals.
NOW, THEREFORE, the Board of the Business
Improvement Association requests '.ie City evaluate formation
of a redevelopment agency in order to better meet their
goals and challenges.
Adopted November 1988