Loading...
HomeMy WebLinkAboutRDA Agenda Packet 120908CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY AGENDA Tuesday, December 9, 2008 REGULAR SESSION 6 00 P M City Hall Council Chambers 6907 EI Camino Real Atascadero, California REGULAR SESSION 6.00 P M. ROLL CALL. Chairperson Beraud Vice Chairperson Luna Board Member Brennler Board Member Clay Board Member O'Malley APPROVAL OF AGENDA. Roll Call COMMUNITY FORUM (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction Speakers are limited to three minutes. Please state your name and address for the record before making your presentation The Board may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board ) A. CONSENT CALENDAR (All items on the consent calendar are considered to be routine and non -controversial by City staff and will be approved by one motion if no member of the Agency Board or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Agency Board concerning the item before action is taken DRAFT MINUTES Agency meeting draft minutes are listed on the Consent Calendar for approval of the minutes Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the Agency Board If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of this meeting ) 1 Community Redevelopment Agency Draft Minutes —October 28, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of October 28, 2008 [Board Secretary] Recess until after City Council reception. Reconvene after City Council reception BOARD REORGANIZATION 1 Board Appointment of Chairperson — The Board Secretary will accept nominations from the Board Members 2. Board Appointment of Vice -Chairperson — The new Chairperson will accept nominations from the Board Members A. CONSENT CALENDAR (continued) - 2. Community Redevelopment Agencv of Atascadero 2009 Meetin Schedule ■ Fiscal Impact: None ■ Recommendation. Agency Board approve Community Redevelopment Agency meeting schedule for 2009 [Executive Director] B. PUBLIC HEARINGS None. 2 C MANAGEMENT REPORTS 1 Public -Private Partnership Opportunity to Encourage Downtown Investment ■ Fiscal Impact: If the Board decides to invest in the Colony Square project or others, up to $1 5 million of Redevelopment Agency funds would be pledged ■ Recommendations. Agency- 1 gency1 Adopt the Draft Resolution declaring that a distressed economic environment exists at 6905 EI Camino Real, and, 2 Direct staff to begin discussions with Mission Community Bank and other community banking partners in the area to guarantee/collateralize loans for investment in major downtown projects including Colony Square [Executive Director] BOARD ANNOUNCEMENTS AND REPORTS (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities Board Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Board may take action on items listed on the Agenda.) D ADJOURNMENT TO CITY COUNCIL MEETING 3 ITEM NUMBER RA A-1 DATE. 12/09/08 COMMUNITYIsla 1970 CITY OFATASCADERO REDEVELOPMENT AGENCY DRAFT•- DRAFT MINUTES Tuesday, October 28, 2008, 6.00 P M. REGULAR SESSION 6 00 P M. Chairperson Beraud called the meeting of the Atascadero Community Redevelopment Agency to order at 6:00 p m ROLL CALL. Present: Board Members Brennler, Clay, O'Malley, Vice Chairperson Luna and Chairperson Beraud Absent: None Others Present: Board Secretary Marcia McClure Torgerson, and Recording Secretary Susanne Anshen Staff Present: Assistant Executive Director Jim Lewis, Board Counsel Brian Pierik, Community Development Director Warren Frace, Deputy Public Works Director Geoff English, Police Chief Jim Mulhall APPROVAL OF AGENDA. MOTION By Vice Chairperson Luna and seconded by Board Member Brennler to approve the agenda. Motion passed 5.0 by a roll -call vote. RA Draft Minutes 10/28/08 Page 1 of 3 5 COMMUNITY FORUM George Schroff suggested reopening a post office in the downtown which would generate foot traffic in the downtown Chuck Ward, a member of the Atascadero Veterans' Memorial Foundation, spoke about the hard work of citizens, donated labor and materials for the Atascadero Memorial Mr Ward invited everyone to the dedication on Saturday, November 8, 2008, at 10 a.m , and he said there will be plenty of off -area parking with shuttle service A. CONSENT CALENDAR 1 Community Redevelopment Agency Draft Minutes — May 27, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of May 27, 2008 [Board Secretary] 2. Community Redevelopment Agency Draft Minutes — June 10, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of June 10, 2008 [Board Secretary] 3. Community Redevelopment Agency Draft Minutes —July 8, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of July 8, 2008 [Board Secretary] 4. Community Redevelopment Agency Draft Minutes —August 12, 2008 ■ Board Secretary Recommendation. Board approve the Community Redevelopment Agency minutes of August 12, 2008 [Board Secretary] 5. Determination for Low/Moderate Income Housing Fund ■ Fiscal Impact: None ■ Recommendation. Board adopt the Draft Resolution determining that the planning and administrative expenses funded from the Low and Moderate Income Housing Fund were necessary for the production, improvement, and/or preservation of affordable housing for low and moderate income households [Executive Director] MOTION _ By Vice Chairperson Luna seconded by Board Member Clay to approve the Consent Calendar (Item A-5 RA 2008-003) Motion passes 5.0 on a roll -call vote. B PUBLIC HEARINGS None. RA Draft Minutes 10/28/08 Page 2 of 3 ■ In C MANAGEMENT REPORTS None. D ADJOURNMENT Chairperson Beraud adjourned the meeting at 6 09 p m to the next meeting of the Community Redevelopment Agency MINUTES PREPARED BY Susanne Curtis Anshen, Deputy City Clerk RA Draft Minutes 10/28/08 Page 3 of 3 7 Atascadero City Council Staff Report - City Manager's Office ITEM NUMBER RA A-2 DATE. 12/09/08 Community Redevelopment Agency of Atascadero 2009 Meeting Schedule RECOMMENDATION Agency Board approve Community Redevelopment Agency meeting schedule for 2009 DISCUSSION The Atascadero Community Redevelopment Agency, pursuant to Article III, Section 1 of its Bylaws, amended October 9, 2007, meets quarterly on a day and time to coincide with regular meetings of the City Council Additional meetings may be held as deemed necessary for the purpose of transacting the business of the Agency Staff has prepared the attached schedule for the year 2009 to help in the coordination of these meetings with personal schedules. FISCAL IMPACT None ATTACHMENT Community Redevelopment Agency 2009 Meeting Schedule 9 ITEM NUMBER RA A-2 DATE. 12/09/08 City of Atascadero Office of the City Clerk Atascadero Community Redevelopment Agency 2009 Meetinq Schedule MEETING DATE TYPE OF MEETING January 13 Regular April 14 Regular July 14 Regular October 13 Regular Regular meetings shall be held at the City Council Chambers, 6907 EI Camino Real, Atascadero California, unless otherwise specified, quarterly on a day and time to coincide with regular meetings of the City Council Additional meetings may be held as deemed necessary for the purpose of transacting the business of the Agency A regular meeting of the Agency may be adjourned to a time and place specified in the order of adjournment pursuant to the requirements of Government Code Section 54955 Meetings are held at 6:00 p.m. For questions, contact the Office of the City Clerk 470-3400 10 9 ITEM NUMBER. RA C-1 DATE. 12/09/08 Community Redevelopment Agency of Atascadero Staff Report - Executive Director Public -Private Partnership Opportunity to Encourage Downtown Investment RECOMMENDATIONS 1 Adopt the Draft Resolution declaring that a distressed economic environment exists at 6905 EI Camino Real, and, 2. Direct staff to begin discussions with Mission Community Bank and other community banking partners in the area to g u arantee/col lateral ize loans for investment in major downtown projects including Colony Square DISCUSSION - Background. One of the City's primary goals is to stimulate economic development, particularly in the downtown area. Additionally, the Atascadero Community Redevelopment Agency is focused on removing blight and improving economic conditions in the redevelopment project area, particularly in the downtown zone One of the ways to encourage development is to generate capital from banks and other sources that can be used to develop commercial projects In an effort to encourage investment in downtown and create a public-private partnership, staff has been working with local community banks to determine ways that agency resources can be leveraged to spur investment. One of the tools available is to encourage loans that qualify under the Community Reinvestment Act (CRA) The CRA, passed by Congress in 1977, encourages financial institutions to help meet their communities' needs through safe and sound lending practices and by providing retail banking and community development services Federal regulators monitor whether banks are fulfilling their CRA obligations. Mission Community Bank is certified by the Department of the Treasury as a Community Development Financial Institution (CDFI) Staff has been working with 11 Mission Community Bank to put together a Community Development certified CRA - qualifying loan consortium for large-scale development projects in the downtown Because CRA loans may be more attractive to banks by helping them meet federal requirements, promoting such loans could encourage investment. Colony Square would be an example of this type of project. By adopting a resolution stating that a property is currently in a state of "financial distress," and that "economic hardship" exists, and as a result, a negative effect on the community is created, bank loans would be eligible for CRA credit. Analysis. Based on the fact that the Colony Square site currently sits, vacant, fenced and underutilized, it likely would be a candidate for a Community Development/CRA eligible loan if the City wanted to partner with community banks Specific to Colony Square, the theater building is currently being appraised at $13 million A loan of approximately $9 million is needed to build the theater building and the adjacent retail locations encompassed in the building In the current credit environment, banks are unable to lend or have significant constraints on underwriting commercial special use projects such as this Further, under normal underwriting criteria, a conventional underwriting would provide a loan in the range of approximately $7 to $7 5 million However staff believes these current barriers could be mitigated by- • Community banks coming together to share the risk • Banks receiving CRA credit • The Redevelopment Agency guaranteed or collateralized a portion of the loan If these elements existed, staff has been advised that the required loan funding might be obtained to complete this project. If the Board chose to form a partnership with the community banks in addition to adopting a resolution determining distress (Attachment A), the City may need to pledge up to $1 5 million as collateral This money would be pledged and would only be at risk if the Colony Square project failed and the liquidation of remaining assets were insufficient to cover the remaining loan balance While several details need to be worked out on how such a program might work, staff is requesting direction of the Board on whether or not such a program would be supported If the Board supports this type of program, staff is requesting that the attached resolution be adopted and that staff be given the authority to work with the local community banks on downtown development projects, and immediately with Colony Square Before agreeing to any type of loan program, the program will be brought back to the Board FINANCIAL ANALYSIS If such a program is desired by the Board, redevelopment funds would need to be pledged to collateralize the loans While the money would not be expended, it would be 11444 12 pledged as a security and would be at risk should the loan fail to be paid per the loan err agreement. Should this situation arise, funding would be made available in the Agency's general fund for this purpose and projects would need to be cancelled or postponed Construction of the theater will undoubtedly have a positive effect on the downtown economy According to records obtained by the assessor's office, the parcel Colony Square is located on currently has an assessed value of approximately $6,700,000 The assessed value of the parcel when the Redevelopment Agency was formed was $2,602,751 The Redevelopment Agency collects property tax increment on the difference from the assessed value of the property today to the assessed value of the property when the Agency was established This amount is $4,097,249 and results in an estimated property tax increment payment of $26,000 for the Agency General Fund. The site is not generating sales tax or other revenues Once the site is fully developed, the assessed value could be $40 million This number appears consistent with the project cost. At an assessed value of $40 million, property taxes would be approximately $440,000 Of this amount, the Redevelopment Agency General Fund would receive approximately $255,000 According to a conceptual staff analysis, taxable sales at the full site once built out are estimated to be $5 million annually resulting in annual sales tax payments of $50,000 Based on these estimates, the net increase in taxes resulting from the development *awl could be as much as $305,000 per year These assumptions are based on full build -out of the project only If only the theater is built, tax increment and sales tax will be less however, the spillover effect on downtown will be significant. FISCAL IMPACT If the Board decides to invest in the Colony Square project or others, up to $1 5 million of Redevelopment Agency funds would be pledged ATTACHMENT Attachment A. Resolution of Determination 13 DRAFT RESOLUTION A RESOLUTION OF THE CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY DETERMINING THAT A DISTRESSED ENVIRONMENT EXISTS ON PROPERTY THAT HAS A NEGATIVE FINANCIAL IMPACT ON THE COMMUNITY WHEREAS, The Community Reinvestment Act, passed by Congress in 1977, encourages financial institutions to help meet their communities' needs- through safe and sound lending practices and by providing retail banking and community development services, and, WHEREAS, certain properties within the Project area are economically distressed and as a result of being unsightly, underutilized, or vacant, are having a negative impact on the economic health and viability of the community; and, WHEREAS, The property located at 6905 El Camino Real, known as the Colony Square project site is currently vacant and underutilized, and, WHEREAS, The property was formerly the location of restaurants, a bowling alley, shops and professional services, all of which provided fobs and contributed to the economy and tax base, and, WHEREAS, The site currently is entitled to be a new entertainment center yet due a lack of funding, it currently sits vacant at the community's mayor intersection, and, WHEREAS, The Agency desires to see the site developed so it will once again contribute to the overall financial health of the community and benefit the local community; and, WHEREAS, The Agency understands that by determining by resolution that the site is financially distressed and negatively impacting the community in its current state that funding for future projects on the site may qualify for the Community Reinvestment Act therefore making the site more attractive to banks and lending institutions, and, WHEREAS, The purpose of this finding is to encourage banks to offer loans to the project to encourage site development. NOW, THEREFORE, The Community Redevelopment Agency of the City of Atascadero, California, does determine that the property at 6905 El Camino Real is currently contributing to the economic distress of the community, and lack of development is causing negative economic impacts. On motion by and seconded by , the foregoing Resolution is hereby adopted on the following roll call vote 14 E5 AYES NOES ABSTAINED ABSENT ADOPTED ATTEST Marcia McClure Torgerson, C.M.C. Board Secretary APPROVED AS TO FORM. Brian A. Pienk, Agency Counsel ATASCADERO COMMUNITY REDEVELOPMENT AGENCY , Board Chairman 15