HomeMy WebLinkAboutAgenda Bill 5D 06/07/2010c: `
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8858:
DATE;
TO:' .
FROM:
~1 ~-ev-.d.~ Ite~vw #5.~
June 7, 2010
.Honorable Chair and Members of the Petaluma Community Development
Commission through City Manager
Bonne Gaebler, Housing Administrator
SUBJECT: 1) Adoption.. of Resolution Determining the '.Necessity of Expending Funds for
Planning and Administration of FY 2010-2011 Low and Moderate Income Housing
Projects
2) Adoption of Joint City and Community Development. Commission Resolution
Adopting Eindiiigs for Use of Low and Moderate Income Housing Funds Outside
the Merged Project. Area
3) Adoption of Resolution .Adopting Findings: and :Authorizing the Expenditure of
$6,459;000 irr Tax Increment Funds it ahe Merged Project Area
4) Adoption of City Resolution Adopting Findings and Consenting to the
Expenditure of $6,45.9,000 in Tax Increment Funds in the Merged Project Area
RECOMMENDATION:
It his recommended that the PCDC take. the following actions: AdoptResolutions #land 3 as
described above;.
Itis recommended that the PCDC and City Council takethe,following joint action: Adopt
Resolution #2 as described above; :and
It is recommended that the City_ Council take the. following .action,: Adopt Resolution #4 as
described above.
DACI£GR®UND:
The California Community Redevelopment Law, Health and Safety Code Section 3,3000 et. seq.
(CRL') requires that redevelopment agencies adopt the above resolutions.• They require either
PCDC or joint'Cty~Council/PCDC action on.an annual basis. A brief explanation ofeach
resolution is included. under "Discussion".
"DISCiJSS'ION:
PCDC RESOLLTT,ION #.1 -Section 33334.3(d) of the CRL requires an annual written
determination. stating that planning and administration expenses paid from the Housing.Fund are .
necessary'for the production;:improvement, or preservation of low.and moderate income housing.
Agenda Review:
D~ Director City Attorney Finance Director City Manage
JOINT RESOLUTION #2 - Section: 33334:2(g) authorizes the PCDC to use monies from the
Housing,Fund outside a'~redevelopmertproject area only upon~adoption ofresolutions by PCDC
and the City Council finding that such use will be of benefit to the project. area.
PCDC. RESOLUTION #3.- S'eetion 33445 of the CRL requires that certain. findings be made prior
to a redevelopm'ent~agency's'expendture of tax increm_ent`funds for public improvements: These
findings must show that. (i) the expenditure of tax increment. funds to undertake the improvements
will be of benefit to: the 'Proj'ec"t Area or the irnmediate•neghborhood in which the proj ect is located
byhelping to eliminate blightwithin he Project Areas; (ii) no other reasonable method of financing
is available to the community; and (iii) the payment of funds for the .cost of the improvements .are
consistent-with the Implementaton.Plan adopted for the Project Areas.,
CITY RESOLUTION #4 Section 3344;5 of the CRL requires. that the 'legislative body consent to
the use of"tax 'increment funds';for public'improvem'ents and that certain findings be made: These
findings must,show that {i) the expenditure; of tax increment funds: to undertake the improvements
will be of benefit to the Project Area orfihe immediate neighborhood in which the project is located
by helping. to eliminate alight within the Project Areas; (ii) no other reasonable method of financing
is available to the community; 'and (ii),the payment of funds for-the cost of the improvements are
consistent with the ImplernentationPlan adopted for th'e Project Areas.
These are "boilerplate'' resolutions which are required by the California: Redevelopment .Law; the
Agency would be out of compliance if not acted on annually:
FINANCIAL I~IVIPAC`I'S:
Total Cost of ~Proj~ects: ~~$6,4'S9,0.00
Amount Budgeted: $6,459,000 (Preliminary ~udget`2010-2011)
°Name~ of Aacaunt:~ PCDC Admin
Account Number: ~ Fund 5400
Fund Balance: $7,010,074 (As of 6/30/11)
ATTACHMENTS
1. Resolution Determining the Necessity of Expending. Funds for. the Planning and
Administration of Projects and Programs Which Facilitate the. Production, Improvement, or
..
Preservation of Low and Moderate. Income Housing for FY 2010-2011:
2. A,Joint Resolution of the City Council''of Petaluma and the Petaluma Community
Development Commisson.Adoptng Findings'Pursuant to C:alifoi-nia Community'
Redevelopment Law Section 33334.2(g) for the Use of Low and 1Vloderate Income.HOusng
Funds' Outside .the Merged Project Area;
3; Resoluton.'of.the. Petaluma Community Development :C'ommissi`on Authorizing the
Expenditure of $6,459;000 of Tax Increment Funds in the Central Business District and/or
Petaluma, Community Development Project Areas' and. Adopting, Findings Required by
Cahforna~ Health,&,Safety Code Section 33445;
4.. Resolution of the: City-Council of the City of Petaluma Consenting to the Expenditure of
$6459,OOO~of Tax Increment Funds in the Central Business D"istrict and/or Petaluma
Community Development: Proj ect Areas and Adopting' Findings Required by California
Heal"th & Safety'Code:~Section33445
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ATTACHMENT # 1
Resolution. No.
PE'TAI,iJ~1VIA COIVIlVILTNI`I'Y DEVEI.OPIVIEN'~' C®1VIlVIISS~®N
RESOT.TJTION DETERMINING TITE NECESSI'T'Y OF'EXPENDING FUNDS FOR TIIE
PLANNING AND ADMINISTRATION OF PRO.IECTS AND. PROGRAMS WHICD
FACILITATE TIIE PROI)~JCTION, IIVIPR®VEMENT, OIZ PRESERVA'I'TON OF IOW
AND MODERATE INCOME HOUSING. FOR
~' 2010-2011
WTIEREAS, pursuant to 'the: Community Redevelopment Law, .California Health and Safety Code
Section 33000 et seq. (".CRT:"),.the Petaluma Community Development Commission ("PCDC")
has established and implemented.. a Low and Moderate Income Housing Fund ("Dousing Fund");
and
WHEREAS, the Housing Fund is utilized for the production, improvement,. and preservation of
low and moderate income housing; and
WHEREAS,. Section 3333'4.3(4) of the CRL requires the PCDC to. make a determination that
PCDC funds expended from the Housing Fund for planning, and administrative expenses are .
necessary forthe~producton; improvement and preservation of low and moderate income housing;
acid
WHEREAS, in order to comply°with section 33334.3(d) of-the CRT; for fiscal year 2010-2011, the
PCDC desires to make. a determination that funds expended from :the .Housing Fund in the amount
of approximatelyfifteeripercent (15%) ofthe total budget were necessary for the production,
improvement and, preservation of low and.moderate income Housing,. such.amount-.not being
disproportionate to the amount actually spent for the costs of production, improvement or
preservation of Housing.
_--- -
NOW, T>EI;ERE~®RE;,,~E IT;RESOLVED THAT the Petaluma Community Development
Commission hereby finds :and: determines that funds expended from the .Housing Furid for planning
and administrative expenses in fiscal year 2010-,20.11 are necessary for the production, improvement
:and preservation of Tow and moderate income. housing.
ATTACHMENT #2
Resolution No.
of the City of Petaluma;. California
A JOINT RES®LU'I'-ION OF ~'HE CITY COUNCIL OF PETAL><T1VIA AND THE
PETALUMA COMMUNIT4' IDEVELOPMENT' COMMISSION ADOPTING FINDINGS
___ _
PURSiJANT TO CALIFORNIA COMMUNITY REDEVEhOPM'ENT LAW SEC'T`ION
33334.2(8) FOIZ THE IJSE OF I.OW AND MODERATE INCOlVIE HOUSING FUNDS
OUTSIDE. THE MERGED PROJECT AREA
WTIEREAS, The City of Petaluma ("City") may receive planning applications for development of
affordable housing projects outside the Merged Project Area which provide affordable housing for
very ow-, low- and/ormoderate-income Households; and
WHEREAS, these projects would expand the City's stock ofaffordable housing; and
WHEREAS; the developer(s) of these projects may request financial assistance from the Petaluma
Community Development Commission. ("PCDC"); and
W>FIEREAS, the PCDC may have funds available in .its Low- and Moderate Housing Fund
("Housing.Fund") to provide'the requested assistance; and
WHEREAS, the.Central .Business District (CDB) and Petaluma Community Development (PCI))
:Redevelopment Plans ("Redevelopment.Plans") and Implementation Plan, as amended by the
PCDC, contain goals and objectives that support the production of affordable housing; and
WI~EItEAS; the use of the Housing `Fund for such affordable Housing is consistent with the
'Redevelopment Plans and Implementation Plan; and
WHEREAS; pursuant to its authority "under the Community Redevelopment Law, California Health
and Safety Code Section 3300b et seq. ("CI2L"), the PCDC desires to provide financial.. assistance
to such affordable housing"projects from the Housing Fund to enable. there ao be financially feasible;
and
WHEREAS, Hea1tH and Safety Code Section 33334.2(8) authorizes: the PCDC to use monies from
the Housing Fund outside aredevelopment project area only upon adoption. of resolutions by the
PCDC and the City Council.. finding that such use will be of benefit to °the Merged Project Area; and,
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W>FIEI~AS, the Gity Council and the P;GDC desire, by this Resolution to declare that the
expenditure of monies from the•P.CDC's Housing fund.for,affordable housing projects outside the
Merged Project Area will be of benefit to the 1Vlerged Project Area, provided that such monies are
used in accordance with the requirements of the CRL.
- -~
NOW, T1EI'EREFORE,18>E IT 1ZESQI:VEI) by the Petaluma Community Development
Commission and the City Council of`the City of Petaluma,as follows::
Section L The City Council and he Petaluma Community Development Commission find and
determine that the expenditure of monies from the Low :arid Moderate Income Housing fund for
affordable Housing projects outside.the Merged Project Area will increase the availability of
affordable housing in the City,. will, be of benefit to the Merged Project Area in accordance with the
requirements of the CRL, will further the,goals of the Redevelopment Plans, and will be consistent
with'the. Implementation' Plan for the Merged Project Area.
Section 2. The City Council :and the Petaluma CommunityDevelopmentComrmssion .hereby
authorize the City Manager/Executive Director or his designee to take such actions as necessary to
carry out. the intent of this Resolution.
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ATTACHMENT #3
ReS®~Uti01fl N®.
Petaluma C®mmuriity Devel®pent C'oanmssi®n
SOI.J'I`ION OF '~"HE PETALt.11VIA COMIi~LTNI'I'Y DEVELOPMENT
C®1VIMISS~ION Ai1THORIZING 'I'~IE EXPENDITJRE OF $6,459,000 OF
TAX INCREMENT FUNDS IN THE CEN'Y'I2AL ~~i1SINESS DIS'I'HICT
AND/012 PETALIJIVIA COIVIlVIiJNI'I`~' DEVELOPMENT PROJECT AREAS
AND ADOPTING FINDINGS 1tEQLTII2~D BY CALIFORNIA HEAL't'II &
SAFETY CODE SECTION 33445
WI-IEREAS, in June 2007`the Petaluma Community Development Commission ("Agency") held a
public. hearing and adopted the.-Five Year Implementation Plan and in October 20.09 held a public
hearing and adopted an Addendum thereto (collectively, "Implementation Plan") for the Central
Business District Project Area ("CB'I)") arid;tlie Petaluma Community Development.Project Area
-("PCD") (collectively; the'"Project. Areas") in furtherance of the City's adopted Redevelopment
Plans for the CBD and PCD; and
WI~EREAS, the Implementation Plan-provides in 2010-11 for the use of $6,459,000 in tax
increment funds 'for the purpose of funding the following public improvements
® 10.1/E. Washington Street Interchange Improvements(PCD)
• Auto Center Drive Extension(PGD)
• Ol'd Redwood Highway Interchange(PCD)
® Rainier Ave. Cross town Connector/Interchange(PCD)
• Caulfield Railroad Crossrig(PCD)
as •~more particularly described in the Implementation Plan (collectively, "Public Improvements") .
within the Project Areas ;and
WHEREAS, completion of the Public Improvements will help to eliminate blighting conditions in
the Proj eet~ Areas because the infrastructure upgrades .and circulation improvements will address
roadway, streebscape and transportation related deficiencies;. as well as improving::-impediments to
circulafion;and access that deter revitalization in certain areas within the Project Areas; and
__
WHEREAS, the work necessary to rehabilitate and reconstruct the roadways is far in excess of the
criteria established by the Association of Bay Area Governments (ABAG) for routine roadway
maintenance; acid
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W1EI>EREAS, Agency and City staff have explored potential funding sources and determined that
aside from $639;000 in,funds from various State and Local agencies, (See Exhibit 1) which will be
available to undertake the Public Improvements; no other reasonable means of financing the Public
Improvements are available to the community; and
WHEREAS, California Health acid Safety Code Section 33445 provides that a redevelopment
agency may, with the. consent, ofthe legislative body, pay for the cost of the construction of
improvements that are publicly owned and are located inside of or contiguous to a project area if the
legislative body determines all of the following:
That the construction of the 'improvements that are publicly owned are of benefit to the
project area by helping. to eliminate. blight within the project area;
2-: That no other reasonable means of financing the installation or construction of the
improvements, that: are publicly owned are available to the community; and
That the payment of funds: for the cost of the improvements -that. are: publicly owned is
consistent: with the implementation plan adopted by the redevelopment agency.
N®W, THEREF®RE,BE IT"RESOLVEb that the Petaluma Community Development
Commission:
1. Adopts the findings stated'herein as true and correct and as its findings.
2. Finds that (i) he expenditure of tax increment funds to undertake the improvements that are
publicly owned as set.forth in this Resolution and the:Implementation Plan will be ofbenefit
to the Projecf .Areas by helping to eliminate blight within the Project Areas; (ii) no other
reasonable:means of'fnancing the installation or construction of the improvements that are
publicly owned are reasonably available to the community; and (iii) the payment of funds ,
for the cost of the improvements fihat are publicly .owned is consistent with the
Irnpleinentation-.Plan adopted for the Project Areas.
3. Authorizes the use of'$6;459,000 in Agency tax increment funds for the Public
Improvements described herein.
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EXI~:IBIT 1
Project PCD:C Fugding
for FI' 2010-20:11 Other funding in
FY 2010=2011
Source
Old Redwood Highway Interchange ~ $899,000 $'500,000 Traffic Mitigation
Impact Fees
Auto Center Drive Extension $1,172,000 $1`39,000 Prop 1B
101/E': WashngtonInterchange $2,732,000 $0.00
Rainier Aue: Crosstown Connector $1,356,000 _.$0.00
Caulfield Railroad Crossing ~ $300,000 $0.00
'T®'I`AI, $6,459,000 $639,000
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ATTACHMENT #4
~eSO~iltl®~ N®.
for -thee pity of Petaluaria, CA
ItESOI,iJTION OF TIE CI')<'Y COUNCIL, OF TIE C~'TY ®F
PETAL.L11V$A .CONSENTING 'I'O THE EXPENDI'T'iJI~ OF $6,4:59,000 ®F
TAX INCI2ElVIENT F'LJNDS IN TfIE CElv'I'RAL BUSINESS DIS'I'ItgC'I'
AND/®I2 PE`I'ALiJ1VIA COIVIlVIJNITY D:EVEI.OP1VIElVT PROJECT AREAS
AND AI)'OPTING FINDINGS 1ZEQiJID RY CAI;IFORNIA.IIEALTI~
SAFETY CODE SECTION 33445
WHEREAS, in June 20.07 the Petaluma Community Devel'oprnent Commission ("Agency") held a
public hearing and adopted the Five. Year Implementation Plan and in October 2009 held a public
hearing and adopted an Addendum thereto (collectively, "Implementation Plan") for the Central
Business District Project Area ("C1BD") and the Petaluma Community Development Project' Area
"PGD") (collectively, the ``Project Areas") in furtherance of the City's adopted. Redevelopment
Plans for the CBD and PCD; and
W>EIEREAS, the Implementation Plan provides in 2010-11 for the use of$6,459,000 in tax
increment funds for the purpose of funding the following public improvements
101/E. Washington Street Interchange Improvements(PCD)
® Auto Center Drive Ex_tenson(PCD)
® Old Redwood Highway Interchange(PCD)
Rainier Ave. Cross=town Connector/Inferchange(PCD)
® Caulfield Railroad Crossng(PCD)
as more particularly described in the Implementation Plan (collectively, "Public Improvements")
within the Proj ect Areas ;and
WH°EREAS, completion of the Public Improvements will help to eliminate blighting~eondifions in
the:Project Areas because the infrastructure upgrades and circulation improvements will-.address
.roadway; streefscape sand transportation related deficiencies; as well as improving impediments to
circulation and access that deter revitalization in certain areas within the Project Areas; and
WHEREAS, the work necessary to rehabilitate and reconstruct the. roadways is far in excess of the
criteria established by the Association of Bay Area Governments (ABAG.) for routine roadway
maintenance; and
9
WHEREAS, Agency and City staff have explored potential,. funding sources and determined that
aside from $639,000 in funds from various State and Local agencies (See Exhibit 1) which will be
available to undertake the Public Lnprovements, no other reasonable means of financing the Public
Improvements -are .available to the community; and
WHEREAS,. California Health and Safety Code Section 33445 provides that a redevelopment
agency may,. with the consent of .the `legislative body, pay for the cost of the construction of
improvements that are publicly owned and are located inside of'or contiguous to a project area if the
legislative body determines all of the following:
That the construction of the improvements that are publicly owned are of benefit to the
project area by helping to eliminate blight within the project area;
2. -That no other reasonable means of financing the installation or construction of the
improvements. that are publicly owned are available to the community; and
3. That the payment of funds: for the cost of the improvements that are publicly owned is
.consistent with the implementation plan adopted by the redevelopment agency.
N®W, THEREF®RE, BE.IT"RES®LVED that the City Council ofthe City hereby:
2. Adopts the findings stated herein as true and correct and as: its findings.
2. Finds that (i) the expenditure of tax increment funds to undertake the improvements that are
publicly`owned as set forth in this Resolution and the Implementation- Plan will be of benefit
to the Project Areas by helping to eliminate blight within the Proj ect. Areas; (ii) no other
reasonable means of financing the installation or construction of the improvements that are
publicly owned are reasonably available to 'the community; and (iii) the payment of funds
for the cost of the improvements that are publicly owned is consistent with the
Implementation-Plan adopted for the Project Areas.
3: "Corisents'to the use of $6;459,000 in Agency tax increment funds for the. Public
Iinprovem`ents described herein.
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EXHIBIT 1
Project PCDC Funding
for FY Z'010-2011 Other funding in
1F'Y 2010_2011.
Source
Old,Redwood Highway Interchange $899;000 $500,000 Traffic Mitigation
Impact Fees
Auto Center Drive Extension $1.,,172;000 $1.39,000 Prop 1 B
101/E. Washington Interchange $2,732,000 $0.00
Rainier Ave. Crosstown. Connector $.1,35:6;000 $0.00
Caulfield Railroad Crossing $300;000 $0:0.0.
TOTAL. ~ $6,459,000 $639,000
r
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