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HomeMy WebLinkAbout03/05/1998, Agenda REDEVELOPMENT STUDY SESSION I Agend? Distribution List (9/9, I I Unpaid Subscriptions: (All mtgs.unless o/w noted) Council dcjEn6a AIA President ` 1 G ASI President CITY OF SAN LUIS OB1SPli BIA /Deborah Holley CITY HALL, 990 PALM STJ Chamber of Commerce Cuesta college / K. Roberts B. Thoma / Chamber of Comm. Co. Board of Spvrs. Paul Hood, Co.Administration Thursday, March 5, KCBXng Authority KCOY KCPR: (2) Gen.Mgr. & News Dir. KDDB 11:30 A.M. ADJOURNED REGULAR I KEYT MEETING KGLO KKJG KSBY KUHL CALL TO ORDER: Mayor Allen K. Settle KVEC KPRL Library (front desk) PLEDGE OF ALLEGIANCE Mustang Daily New Times (front desk) Pac.Bell / V. Montalban ROLL CALL: Council Members Bill Roaft Pac. Gas & Elec. / B.Burke 0 Planning Comm. (� Comm. Dev.) Williams, Vice Mayor Kathy So. Calif. Gas / V. Sterling Council of Govts / R. DeCarli League of Women Voters PUBLIC COMMENT PERIOD(not to exceed 15 minutes total) Telegram-Tribune (front desk) The Council welcomes our input You may address the Council b Public Interest Action ctr. Y P Y ECOSLO / Geoffry Land it to the City Clerk prior to the meeting. At this time, you may add Res.forQual.Neigh / C.Sanders on the agenda or items on the Consent Agenda. Time limit is thsierra Club / Gary Felsman the Council to discuss or take action on issues not on the agenda, sLo Property Owners Assoc. staff may briefly respond to statements made or questions pose Fred strong (The citizen) testimonySec. 54954.2 . Staff may be asked tSonic cable/Jackie rights(Gov. Code ) y o UNOCAL/J. Bray and other written documentation relating to each item referred to c Telegram Tribune/S.Lyons Clerk's Office in Room 1 of City Hall. Peg Pinard/SLO County Walter Capps II.Subscriptions Paid or Env. Provided (rea.mtcrs.only) : COMMUNICATIONS(not to exceed 15 minutes) John Wi esq. At this time, any Council Member or the City Administrative Office Easter Re s, In . make an announcement, or report briefly on his or her activities. 1 IMS/S.. Krau e and Procedures, they may provide a reference to staff or other res EDA (Enii gr. D Assoc.) Ellenburg Capi al Corp. staff to report back to the Council at a subsequent meeting concernLocal Government Services staff to place a matter of business on a future agenda(Gov. Code S RRM Design Grouk/ LeeAnne Vista Informatio6,,Services Wallace, John L. &\\Assocs. Walter Bros. Const�%`uction Co. A. J.1 Diani coisstruction Fugr cClelland ® Cannon Assoc. Cannon Assoc. Regular City Council meetings are broadcast on KCPR, 91.3 FM. The(, SLO Ind. of Realtors the disabled in all of its services,programs,and activities. Telecommunications Dej Kimley-Horn to the City Clerk prior to the meeting if you require a hearing amplification device. 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