HomeMy WebLinkAbout03/05/1998, Agenda REDEVELOPMENT STUDY SESSION I Agend? Distribution List
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Council Agenda ThursG, „ March 5, 1998
STUDY SESSION
1. REDEVELOPMENT FINANCING (HAMPIAN/- 1 hr.)
Consideration of a report from Urban Futures, Inc. on redevelopment financing
concepts.
+ RECOMMENDATION: After receiving report, if Council is interested, direct staff to
negotiate a contract to complete a more detailed feasibility study relative to the Mid-
Higuera and Madonna Road shopping areas, and return to Council for contract award.
A. ADJOURNMENT.
2
. 1
counch M Vr
j acEnaa Report ,mN
CITY OF SAN LUIS OBISPO
FROM: John Dunn, CAO
Prepared By: Ken Hampian,Assistant CAO ,
Diane Sheeley, Economic Devel m t Manager DS
Bill Statler,Finance Director,
SUBJECT: REDEVELOPMENT STUDY SESSION
CAO RECOMAIENDATION
1. Receive a report from Urban Futures, Inc. on redevelopment financing concepts.
2. If Council is interested in continuing, direct staff to negotiate a contract to complete a more
detailed feasibility study relative to the Mid-Higuera and Madonna Road shopping areas, and
return to Council for contract award.
DISCUSSION
Background
The City's 1997-99 Financial Plan includes the following priority goals:
• Proactively work to revitalize Madonna Plaza and the Central Coast Mall.
• Continue implementing the economic development program, including focused business
recruitment efforts consistent with the results of the Council-adopted Targeted Industry
Cluster Committee's report.
• Complete a Mid-Higuera Area master plan.
As part of the work program, the first two goals included re-evaluating the feasibility of
redevelopment financing based on recent changes in the State law.
In an effort to accomplish this goal, City staff met with representatives from a consulting firm
specializing in redevelopment agencies, Urban Futures, to explore the feasibility of forming a
redevelopment agency within the City of San Luis Obispo. This meeting included a
"windshield" tour of the City and candidate project areas. Based on the results of our very
preliminary discussion with Urban Futures, we believe that further exploration of this concept is
warranted.
Early Consultation with County and School District
Prior to proceeding to a study session, the CAO, Assistant CAO, and the Finance Director held
one-on-one meetings with the San Luis Coastal School District and the County CAO as an initial
Council Agenda Report—Redevelopment Study Session
Page 2
step in clearly communicating that the Cityis in a very preliminary stage in assessing the
feasibility of forming a redevelopment agency. The CAO also indicated that the City does not
wish to cause financial hardship to those entities affected by the formation of a redevelopment
agency. The general response from County and School District staff was that while they had no
major immediate concerns relative to the establishment of a fairly limited redevelopment area,
information resulting from further study is needed.
City staff concurs, and has committed to working closely with the County and the School
District, if this project continues. Representatives of these agencies and other organizations have
been invited to the study session.
Study Session Presentation
Before moving forward to the next step, preparing a more detailed feasibility study, we have
asked Urban Futures to generally brief the Council on the following four(4)major topics:
• advantages/disadvantages of forming a redevelopment agency (including what, if any,
impact this would have on other agencies like the County or School District)
• how redevelopment plans are prepared and adopted
• how redevelopment financing works
• how redevelopment plans are implemented over time
More specifically, during the study session the consultant will review the areas outlined in the
detailed attachment to this report. In addition, the consultant will discuss what kind of work
would be completed in a follow-up feasibility study, should the City proceed further in exploring
the formation of a redevelopment area.
Next Step: A Feasibility Study of Potential Redevelopment Areas
Redevelopment as practiced under the authority of the California Community Redevelopment
Law is a complex process, and the realization of successful redevelopment projects and programs
will require a long-term commitment on the part of the City. Prior to making such a
commitment, added information would be necessary. At this point, however, it is only necessary
that we determine if interest is sufficient to proceed further.
If sufficient interest is expressed by Council, the next step is to prepare a feasibility analysis.
Such a study would determine such things as project eligibility and legal issues, possible area
boundaries and revenue potential, and impact on other agencies, such as the County and School
District. Staff would negotiate a detailed scope of work for subsequent presentation to the
Council. Any successive phases would also require Council's approval on a step-by-step basis.
Should we proceed to the feasibility study stage, staff recommends that it focus on the Mid-
Higuera area and the Madonna Road shopping corridor. With regard to the Mid-Higuera area, in
the next few weeks the Community Development Department will bring to Council a proposed
RFP for completing a master plan. Such a plan will involve identifying design,.infrastructure,
and creek area improvements, among other things. Such facilities will require substantial
investment, and redevelopment financing may be one source of support.
1
Council Agenda Report—Redevelopment Study Session
Page 3
The Madonna Road shopping area primarily refers to the Madonna Plaza and Central Coast Mall
centers. While private redevelopment may be pending for the Central Coast Mall, it is not a
certainty at this time. No plans appear to be underway for Madonna Plaza. For these reasons,
staff believes this area should be included in any further study. If and when Central Coast Mall
submits a formal application, this area could be removed from further study.
FISCAL IMPACT
Staff estimates that completion of a feasibility study will cost between $10,000 - $20,000,
depending upon the scope. The specific amount would be determined when staff returns to
Council with a proposed contract. A new appropriation would be required for this study.
Adequate General Fund balance is available to fund this cost and maintain fund balance at
minimum policy levels, if we proceed.
ALTERNATIVES
1. Limit the Project Area to the mid-Higuera area only and complete the feasibility stud
conjunction with the mid-Higuera area master plan. This option is not recommended for
three reasons. First, studying the added area will not significantly increase study costs.
Second, including the Madonna Plaza and Central Coast Malls is more consistent with the
Council's stated goal. And third, it is questionable whether the Mid-Higuera area alone could
generate sufficient revenue to make forming a redevelopment area feasible and worthwhile.
2. Expand the Project Area to include the downtown and the Airport Area. Whjle these two
areas (or portions of these areas) might be eligible for inclusion in a redevelopment area
boundary, staff recommends against any further consideration at this time. The downtown
appears to be generally thriving on its own, and there are already more than enough complex
issues encumbering the Airport Area.
ATTACHMENT
Outline of study session topics
RED_ ::LOPMENT STUDY SESSION OU1__NE
March 5 , 1998
Advantages/Disadvantages Discussion Points:.
Fundamental purposes of redevelopment
Value of redevelopment as an economic development tool in San Luis Obispo
Socio-political implications
Agency formation and organization
Guidelines for establishing a redevelopment project area
Possible project area location(s)
Redevelopment projects and programs opportunities
Fiscal benefit and responsibility
Conflict of Interest
Plan Preparation and Adoption Discussion Points:
Project area designation -
Redevelopment Plan and related documents
Community education and participation
Agency eminent domain authority
CEQA compliance and related environmental issues
Referendum and potential for legal challenge
Subsequent plan amendment procedures
Scheduling alternatives
Agency Financing Discussion Points:
Financing initial programs and projects
Tax allocation notes and bonds
Tax increment calculation, collection and other issues
Supplemental financing sources
Low- and moderate-income housing set aside fund
Plan Implementation Discussion Points:
Ongoing, general opportunity incentive programs
Long-term, site-specific real estate development/redevelopment projects
Land acquisition
Relocation
Development assistance and property disposition
Affordable housing requirements
Development of a long-term implementation strategy or master plan
council acEnaa
CITY OF SAN LUIS OBISPO
CITY HALL, 990 PALM STREET
Thursday, March 5, 1998
11:30 A.M. ADJOURNED REGULAR Council Chamber
MEETING 990 Palm Street
CALL TO ORDER: Mayor Allen K. Settle
PLEDGE OF ALLEGIANCE
ROLL CALL: Council Members Bill Roalman, Dave Romero, Dodie
Williams, Vice Mayor Kathy Smith, Mayor Allen K. Settle
PUBLIC COMMENT PERIOD(not to exceed 15 minutes total)
The Council welcomes your input You may address the Council by completing a speaker slip and giving
it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not
on the agenda or items on the Consent Agenda. Time'limit is three minutes. State law does not allow
the Council to discuss or take action.on issues not on the agenda, excepfthat members of the Council or
staff may briefly respond.to statements made or questions posed by persons exercising their public '
testimony rights(Gov. Code Sec. 54954.2). Staff may be asked to follow-up on such items. Staff reports
and other written documentation relating to each item.referred.to on this agenda are on file in the City
Clerk's Office in Room 1 of City Hall. .
COMMUNICATIONS(not to exceed 15 minutes)
At this time, any Council Member or the City Administrative Officer may ask a question for clarification,
make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies
and Procedures, they may provide a reference to staff or other resources for factual information, request
staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct
staff to place a matter of business on a future agenda(Gov. Code Sec. 54954.2).
® Regular City Council meetings are broadcast on KCPR, 91.3 FM. The City of San Luis Obispo is committed to include
the disabled in all of its services,programs,and activities. Telecommunications Device for the Deaf(805)781-7410. Please speak
to the City Clerk prior to the meeting if you require a hearing amplification device. For more agenda information,call 781-7103.
G
Council Agenda Thurso .y, March 5, 1998
STUDY SESSION
1. REDEVELOPMENT FINANCING (HAMPIAN/- 1 hr.)
Consideration of a report from Urban Futures, Inc. on redevelopment financing
concepts.
f RECOMMENDATION: After receiving report, if Council is interested, direct staff to
negotiate a contract to complete a more detailed feasibility study relative to the Mid-
Higuera and Madonna Road shopping areas, and return to Council for contract award.
A. ADJOURNMENT.
2
DISTRIBUTION LIST
Geoff Land Maggie Cox
ECOSLO Association of Manufacturers and
Post Office Box 1014 Distributors
San Luis Obispo, CA 93406 992 Monterey Street, Suite F
(HAND-DELIVERED) San Luis Obispo, CA 93401
(HAND-DELIVERED)
Vic Montgomery
RRM Design Urban Futures, Inc.
3701 S. Higuera Street Crestview Corporate Center
San Luis Obispo, CA•93401 3111 N. Tustin Avenue, Suite 230
(HAND-DELIVERED) Orange, CA 92865-1753
(VIA FAX - 714/283-9319)
Dr. Edwin Denton, Superintendent
San Luis Coastal Unified School District
1499 San Luis Drive
San Luis Obispo, CA 93401
(HAND-DELIVERED)
Clark Channing, Administrative Officer
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 93408
(HAND-DELIVERED)
Deborah Holley
Business Improvement Association
Post Office Box 1402
San Luis Obispo, CA 93406
Gregg Goodwin
Economic Vitality Corporation
412 Higuera Street, Suite B
San Luis Obispo, CA 93401
Dave Garth
Chamber of Commerce
1039 Chorro Street
San Luis Obispo, CA 93401
council Agenda
CITY OF SAN LUIS OBISPO
CITY HALL, 990 PALM STREET
Thursday, March 5, 1998
ACTION UPDATE
11:30 A.M. ADJO.URNED'REGULAR Council Chamber
MEETING 990 Palm Street
Present: Council Members Bill Roalman, Dave Romero, Dodie
Williams, Vice Mayor Kathy Smith, Mayor Allen K. Settle
PUBLIC COMMENT PERIOD (not to exceed 15 minutes total)
The Council welcomes your input. You may address the Council by completing a speaker slip and giving
it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not
on the agenda or items on the Consent Agenda. Time limit is three minutes. State law does not allow
the Council to discuss or take action on issues not on the agenda, except that members of the Council or
staff may briefly respond to statements made or questions posed by persons exercising their ,public
testimony rights(Gov. Code Sec. 54954.2). Staff may be;asked.to follow up on such items. Staff reports
and other written documentation relating to each item referred to on this agenda are on file in the City
Clerk's Office in Room 1 of City Hall,
None.
COMMUNICATIONS (not to exceed.75 minutes)
At this time, any Council Member or the City Administrative°'.officer may ask a question for clarification,
make an announcement, or report briefly on his orb-or activities. In addition, subject to Council Policies
and Procedures, they may provide a reference to staff or other resources for factual information, request
staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct
staff to place a matter of business on a future agenda(Gov. Code Sec. 54954.2).
None.
Council Agenda Thursday, March 5, 1998
STUDY SESSION
1. REDEVELOPMENT FINANCING (HAMPIAN/- 1 hr.)
Consideration of a report from Urban Futures, Inc. on redevelopment financing
concepts.
+ RECOMMENDATION: After receiving report, if Council is interested, direct staff to
negotiate a contract to complete a more detailed feasibility study relative to the Mid-
Higuera and Madonna Road shopping areas, and return to Council for contract award.
FINAL ACTION: Report received and staff directed to negotiate a contract to
complete a more detailed feasibility study relative to the Mid-Higuera and
Madonna Road shopping areas, as well as other areas as determined by staff and
return to Council for contract award(4-0-1. KS absent).
A. ADJOURNED TO TUESDAY, MARCH 17, 1998 AT 4:00 P.M. IN THE
COUNCIL CHAMBER.
0
2
l• Y 1 _ -
council acjEnba
CITY OF SAN LUIS OBISPO
CITY HALL, 990 PALM STREET ,
Thursday, March 5, 1998
ACTION UPDATE
71:30 A:M. ADJOURNED REGULAR "' Gouncil�Chamber'
MEETING Palm Street
Present: Council Members Bill Roalman, Dave Romero, Dodie
Williams, Vice Mayor Kathy Smith, Mayor Allen K. Settle
PUBLIC COMMENT PERIOD (not to exceed 15 minutes total)The.
Co:
unctl welcomes your input. You may address;-the Council by co pleting}a speaker slid and giving
it to the City Clerk priorto the meeting ..At this time, you may addre_s"s the Council on items that are nof,
on the agenda or items on. the Consent Agenda Tune limit is three minutes ,State iaw does<not allow.;
the Council to discuss or take action on issues not on the agenda;eXcept that members of the Councilor,
:staf ,may,:briefly resporid ,to statements made or quest h§,�posed.by persons exercising
their—"
testimony rights(Gov. Code S66.54954.2). Sta may be asked to follow up ori such item's Staff reports:!
,and other written documentation relating to each item referred to on'this agenda are. on file'iri the City
Clerk s Office in Room 1.of City Ball.
None.
COMMUNICATIONS (not to exceed 15 minutes) =
At this_time, any Council,Member or the City Administrative bffcer may ask a guestion for clarification,
make an announcement, or report briefly on his or'.her activities- In add�on,surblect to Council'Pohcies
And Procedures, they may provide a reference'to.staff or gther resoutbg for;factual giformau ri, request
-staff to report back to.the:Council at a subsequent-meeting concemng.any matter, orjake action to direct
staff to.place a matter of business on a future agenda{GoV.,Code Sec. 549542) .
-. .
None.
4 - o-
Council Agenda Thursudy, March 5, 1998
STUDY SESSION
1. REDEVELOPMENT FINANCING (HAMPIAN/- 1 hr.)
Consideration of a report from Urban Futures, Inc. on redevelopment financing
concepts.
+ RECOMMENDATION: After receiving report, if Council is interested, direct staff to
negotiate a contract to complete a more detailed feasibility study relative to the Mid-
Higuera and Madonna Road shopping areas, and return to Council for contract award.
FINAL ACTION: Report received and staff directed to negotiate a contract to
complete a more detailed feasibility study relative to the Mid-Higuera and
Madonna Road shopping areas, as well as other areas as determined by staff and
return to Council for contract award(4-0-1. KS absent).
A. ADJOURNED TO TUESDAY, MARCH 17, 1998 AT 4:00 P.M. IN THE
COUNCIL CHAMBER.
2