The URL can be used to link to this page

Home My WebLink AboutStaff Report 1.A 02/10/2009flull CITY OF PETALUMA, CALIFORNIA February 10, 2009 MEMORANDUM Cmmaanily Development Department, 11 English Street, Petahona, CA 94952 (707)778-4301 Frtc(707)778-4498 E-ranil. cddeadpetalama.ca.as DATE: February 4, 2009 TO: John Brown, City Manager FROM: Mike Moore, Community Development Director SUBJECT: PCDC Workshop Agenda Materials On Tuesday, February 10, the City Council, sitting as the Petaluma Community Development Commission, the board of directors for the City's redevelopment agency, will continue its consideration of a strategic vision for the implementation of the agency's two project area plans. The Commission last met for a workshop on this topic on November 12, 2008 and began this review with a detailed presentation by the agency's consultant, Seifel Consulting, on its current financial status and implementation priorities. The purpose of the meeting on February 10 is to continue the discussion of a strategic vision for the investment of the agency's limited funds through the 2011-2012 fiscal year and the criteria by which potential investments are evaluated. The attached materials are series of tables intended to illustrate how the Commission might re-evaluate current implementation priorities in order to realize a greater potential return on its redevelopment investments and conform to the goals of its two project area plans. The tables also propose how the Commission might also organize those priorities in a way that provides greater flexibility in making project specific investments. Staff from Seifel Consulting will be at the meeting on February 10 to lead the discussion and answer Commission questions. By the conclusion of the February 10 workshop, staff and our consultants will be requesting direction to proceed with the preparation of the mid-term review of agency's adopted 5 -Year Implementation Plan, as required by state redevelopment law. c: Seifel Consulting Table 1 Projected FY 2007108 to FY 2011112 Non -Housing Redevelopment Program Expenditures (In Thousands) Petaluma Community Development Commission Project Title (Circulation, Landscaping and Parking Improvements PCDC CIP Salary/Benefit 1 Caulfield Extension - Lakeville to Hopper Street Petaluma Boulevard - Bike Lanes East D Street Widening Howard Street - Bodega Avenue to 6th Street Reconstruction Petaluma Boulevard - Lakeville to Washington Street Improvements Keller Street - Western Avenue to B Street and Liberty Street - Washington Street to Westem Avenue Reconstruction River Trail Design far Top of Bank D Street Bridge Replacement of Trunnion Bearings (for bridge rotation) Ely/Caulfield/Payran Street Reconstruction Washington Street - Howard Street to Petaluma River and 6th Street - D Street to J Street Pavement Rehabilitation Rainier Avenue Cross -Town Connector and Interchange Old Redwood Hiahwav Interchange Widening Assessments Landscape Improvements Traffic Signal Upgrades E. Washington Street Interchange Improvements FY 06/07 tax increment available For 06/07 budgeted CIP Subtotal Public Facilities and Infrastructure Downtown Improvements Phase 11 Police Headquarters Renovations/Relocation Relocation of Fire Station 1 Subtotal Economic Development 1 Storefront Improvement Loan Program Downtown Association Develop ment/Redevelopmenl Assistance` Subtotal Building Rehabilitation Community Facilities Miscellaneous Proiects Petaluma Railroad Depot Renovation URM Seismic Retrain Program Railroad Depot Lease Subtotal ISite Preparation and Development Brownfields EPA Assessment Proiecl I Subtotal Total Projected Non -Housing Expenditures: Seifel Consulting Inc. 213109 Projected Project PCDC TOTAL Number FY 06/07° FY 07/08 - 5 Year Plan 11/12 Expenditures I C200001 $ 349 S 311 S I I 6601 C200104 $ 56 $ 750 S 8061 C200108 $ 834 S 8341 C200205 $ 301 $ 553 $ 8541 C200208 S 1,000 $ 1,0001 C200304 S 1,117 S 485 -1 S 1,6021 C200308 S 1,400 $ 1,400 C200503 $ 50 $ 2,100 $ 2.150 1 C201204 S 774 - $ 7741 C500206 S 2,682 ` $ 2,6821 C500207 S 2,000 - S 2,000 C501204 $ 10,000 S 10,0001 C501304 S 15,100 $ 15,1001 P201010 S 275 $ 2751 P201040 $ 700 $ 7001 P201150 S 825 $ 8251 P201160 S 4,000 S 4,0001 S (2,240) $ (2,240)1 $ 7,089 S 36,333 $ 43,4221 C200603S 2,575 S 1 2,5751 C300106 S 1,129 $ II,846 S 12,9751 C300305 S 290 S 11,196 S 11.4861 $ 1,419 $ 25,617 1 S 27,0361 P201011$ 375 $ 1 3751 P201020 $ 250 $ 2501 $ 3,299 $ 3,2991 S - S 3,924 S 3,9241 C1n0108 S 50 $ 1 501 C200303 $ 50 $ 275 - _ $ 3251 P201070 S 150 $ 1501 P201110 $ 200 $ 2001 $ 50 S 675 S 7251 1 P201140 5 400 S 1 4001 $ - 1 S _400 S 4001 S 8,558 $ 66,949 $ 75,507 1 Seifel Consulting Inc. 213109 a. Only projects listed in the FY 2006/07 or FY 2007/08 PCDC CIP Budget have a project number. Project numbers starting with C indicate a capital improvement, defined as the cast afpumhasing or constructing improvements. Includes design, project administration, right of way acquisition, environmental and physical mitigations and improvements. Project numbers starting with P indicate a program, defined as a group of related activities performed by one or more organizations] units for the purpose of accomplishing a City responsibility. b. Funding allocated in FY 2006/07 through the PCDC's 2007 Tax Allocation Bond. Funds will be expended during the five year Implementation Plan period. c. Development/Redevelopment activities include, but are not limited to I Attract new business and retain existing businesses. 2. Provide business and developer incentives. Provide opportunities for participation by owners and tenants to the revitalization of their properties. 3 Enhance accessibility to employment, retail and entertainment opportunities. d. If necessary, provide assistance to the private sector to ensure development. Nates; Numbers shown are in thousands of dollars. Source: Petaluma Community Development Commission, City of Petaluma FY 2007/08 Budget; Seifel Consulting Inc, Seifel Consulting Inc. 213109 Table 2 PCDC Programs and Expenditures FY 2007108 - FY 201112012 Programs Categories and Expenditures' Regional Highway/Cross Town Connections Local Road Street Beautification Transit Bike/Pedestrian Parking Miscellaneous Assessments and Planning Subtotal I Public Safety Facilities 1 Community Buildings and Park Facilities 1 Public Infrastructure (Drainage, Utilities, etc.) 1 Subtotal 1 New Development Incentives Business Retention and Expansion 1 Business Attraction I Subtotal Current Five Yearl Plan $ 1 % I $25,850 $5,778 $1,185 $0 $2,934 $0 39%1 9%1 2%1 0%1 4%1 0%1 1%1 540/41 $23,042 34%1 $50 0%1 $2,575 4%1 $25,667 38%1 77$1,650 2°/a� $9501 1%1 $950 1% $3,549 5% I Building Rehabilitation Assistance (Unreinforced Masonry, etc.) $625 1 Fapade Improvement $375 1 Subtotal 1 $1,000 Hazardous Materials Testing and Remediation $400 1 % Site-specific Infrastructure Investment $0 0% Property Assembly $0 0% Subtotal $400 1% a. Projected expenditures are rounded to the nearest thousand; current expenditure information provided by the Petaluma Community Development Commission. Seifel Consulting Inc. 213109 Table 3 PCDC Goals and Implementation Plan Programs FY 2007/08 - FY 2011/2012 I Regional Highway/Cross Town Connections Local Road Street Beautification Transit Bike/Pedestrian Parking I Public Safety Facilities Community Buildings and Park Facilities Public Infrastructure (Drainage, Utilities, etc.) I New Development Incentives I Business Retention and Excursion Business Attraction ., I Building, Rehabilitation Assistance (URMs, etc.) I Hazardous Materials Testing and Remediation I Site-specific Infrastructure Investment e �r r 4>k G a°4c el` c m � Q e`/`cos a I I A I A A I i I I A I A I A I A A I I ''.. A I A ,_ A I ®_ I I A A I A A A I A A ® A A A ® ® .. A I I A ® ® ® A I A A I A A A @ A A ® A 19 ® A ® A A I A I A I A 0 A 0 A A I A I A I A ® Yes - Direct or Indirect A Possibly - Direct I — Possibly - Indirect I No Seifel Consulting Inc. 213/09 Table 4 PCDC Programs and Expenditures Revised Programs Categories and Expenditures' Regional Highway/Cross Town Connections Local Road I Street Beautification I Transit Bike/Pedestrian Parking Miscellaneous Assessments and Planning Subtotal Community Buildings and Park Facilities Public Infrastructure (Drainage, Utilities, etc.) Subtotal I New Development Incentives Business Retention and Expansion Business Attraction I Subtotal Building Rehabilitation Assistance (URMs, etc.) Fagade Improvement Subtotal I Hazardous Materials Testing and Remediation I Site-specific Infrastructure Investment Properly Assembly Subtotal Current Five Year Plan Four Year (FY 2008109 -11112) Goal -Based' Proposed % $25,850 39% - - $5,778 9% f $1,185 2% 5% $13,122 27% $625 $2,934 4% - $375 I% $586 1% ; _- $36,333 54% $9,234 19%� 23,042 34% - - - I - - $50 0% - - - --_ $2,575 4% _ --- -- I 25,667 38% $5,832 12% $950 1% $950 1% - -`_ $3,549 5% $13,122 27% $625 1% $375 I% - - $1,000 1% $7,776 16% $400 1% _ $0 0% I $0 0% _- $400 l% $12,6361 26% a. Projected expenditures are rounded to and expressed in the nearest thousand; Current expenditure information provided by the Petaluma Community Development Commission. b. Percentages based on alignment with PCDC Goals (Table 3). Funding amount based on fund balance as of 7/1/08 and estimated additional bonding capacity. Seifel Consulting Inc. 213109 Table 5 Criteria for PCDC Assistance Criteria: Economic Revitalization Capacity & Readiness Agency Project Partner Project Readiness Reuurn on Investment Return to Agency • Tax Increment Return to City • Sales Tax •TOT • Other General Fund Revenues • Reduced Costs/Increased Efficiencies Leverage of Other Funding • Government: Federal, State, Regional • Private • Non -Profit Catalytic Potentia/ Job Creation (Direct) Economic Spin -Offs • Indirectly Catalyze Investment • Indirectly Support JobsBusiness/Industry Growth Community Benefits • Community -serving retail and services • Publicly accessibly open space ConeunrntitJ, PlmmingAchienenient Implement Key Plans/Strategies • Smart Growth • Environmental Sustainability • Placemaking • Community Identity Seifel Consulting Inc. 213/09 Table 6 Return on Investment and Specific Projects Seffel Consulting Inc. 219109 —I - t oto, Placa' n11 j" , I, � - aran. Re c,t, lo il- 1 i nion City lntoodil i0talunaA o Estimated Assessment F Duariet 19 Estimated IICDC fistinuueJ A--,,.i,y hwe,1111ent $ 'i Itenuhur,etuent, 6,0011'ono emaribution. 17,500,000 liede'el"Poleat Agency 3 1 '(100,000 P ... touistay Note Value, muntualon. Agency coutributiou. aud ensile improvements. Rena- . .... i ...... ma.a ReIL1111 W Agency $ 7 -1, : ......... . Annual I I ia 000 troject Unquarai fiab le S lahi I ized I I at ne Values Fstuount] , Annual 'I I at S 5,0110,000 Annual TI (F)'2007/08) - 1.� la"enieut 1AL11111 Out ----- --- ---- Vrojeel Build (),it (aid AV 1powl1b Ilam meal— Heann to Uny • Sales -fax I u 1, $ 1,300,000 Annual Sale, Tax 11itiolowd Reduced ooHxpense,, $ 100,000 Flding Eltillufled Annual Sules Estimated Annual Sales lox 3,4100,000 • (ulas Li�la2ail Food Itore'li, (a, of end W 200H) (Annual) Tux at Retail Build Out at Roast Bond 0,11 • Reduced L osl,fincrea,ed Efficicames L"eweeaf0alm houting Usti ... ined Value of Lammed Value .—fP-r-rivaa,- • 6"Verinneut: Federal, State. Ite"oual 111111 Billowed Value I 116vate 37,000,000 Approximate Federal $ 618,0110j)(H) I'Mate SU001 S I Scour Development (Not • Notate Sector Development Funding Duveloponcto (Not incl. mel talp,ent lui and • Non-litolfil Ii lixtenition) OUISiLIC I'LIMIC hJullina lavesanwin Repayment 4 Yeaus or Le,,, on Year., ur Le,4 Year., a, rl-._ 6 Yest, or Less Leverage Rama (Odie, Fundum cunnlnued luAtoawy lovi,snuent) 1 h 35 4 Seffel Consulting Inc. 219109 0 It Petaluma Community Development Commission (PCDC) Investment Strategy February 10, 2009 A. Background B. Implementation Plan as Investment Strategy C. Strategically Selecting Projects D. Next Steps Maximize and wisely allocate resources Encourc,--4ge new development that produces a increment revenue U ^:. Capitalize on opportunities in the current fiscal ! financialenvironment 9 Redevelopment and PCDC Background P / . Accomplishments PCDC Expenditures, !' H bummary of Potential R. urces 0 Existing Fund Balance (Start of FY2008/09): + $31 M for Non -Housing Projects/Programs + $5.51VI for Housing Projects/Programs 0 Tax Increment: + $284.61VI in Gross TI to the PCDC ($58.01VI Housing) + Estimated $12M in Additional Ponding Capacity for Non -Housing Projects in FY2008/09 + Potential to Grow given Targeted Investment Near Term Non -Housing Revenues: $43M a Investment Strategy to Maximize Resources 5 IMPLEMENTATION PLAN as Investment Strategy , k"i ,r r Recent expenditures and Implementation Plan focus on Lower Return Projects Investment Strategy moves towards Higher PCDC Non-HousingNon-Housing Funds Committed by Project!e 2003/04-2007/08 Site Preparation and Development 1% _ Economic Development Building Rehabilitation_ Public Facilities and Infrastructure 39'%. 0% Circulation, Landscaping and Parking Improvements 54°,/u Implementation Plan Public Facilities and Inl`l"UStrnl'tnre ih°u Non-HousingPCDC dProposed 2007/08-2011/12 Building Rehabilitation I Site Preparation and Economic Development Development 51.1ju .. 1 INO Circulation, Landscaping and Parking Improvements 55"/„ Please refer to Table 1 for list of Projected FY 2007108 to FY 2011112 Non -Housing Redevelopment Program Expenditures, 9 Addresses ■ D Goals Prioritizes Programs with Greatest Return + On PCDC Goals + On PCDC Resources Takes Advantage of New Opportunities an* Meets New Challenges Provides Process and Criteria for Judging potential Projects lul Analyzed expenditures in Implementation Plan by Program + Circulation, Landscaping and Parking Improvements + Public Facilities and Infrastructure + Economic Development + Building Rehabilitation + Site Preparation and Development programSummarized proposed project expenditures by b . -ro, 11 Table 2 PCDC Implementation Plan Program Categories and Proposed Expenditures FY 2007108 - FY 201112012 Current Five Yearl Program Categories and Expenditures' PLn (in Thousands) $ % _ Regional Highway/Cross Town Connections $25,850 39'n l Local Roads $5,773 9%I Street Beautification $1,185 2'!/. Transit $0 0%,� Bike/Pedestrian $2,934 494,1 Parking $0 01%,I Miscellaneous Assessments and Planning $586 I'%,1 Subtotal $36,333 5.41%,1 I Public Safety Facilities $23,042 Community Buildings and Park Facilities $50 Public Infrastructure (Drainage, Utilities, etc.) $2,575 1 Subtotal $25,667 I New Development Incentives $1,650 2% Business Retention and Expansion $950 PX, Business Attraction $950 I';/O I Subtotal $3,549 51% Building Rehabilitation Assistance (Unreintoreed Masonry, etc.) $625 19() Facade Improvement $375 19/D Subtotal s 1,0001 I'9. Hazardous Materials Testing and Remediation f $400 N/ Site-specific lnitastracture Investment 1 $0 0°/� Propertv Assembly 0°/.I Subtotal I$0 $400 1%1 12 it. Projected expenditures are rounded to the nearest thousand; current expenditure information provided by the Petaluma Community Development Commission. Evaluated Program Subcategories based on their ability o achieve key PCDC Goals: • Revitalize Downtown (CBD) & the PCD • Preserve & enhance community identity Stimulate private investment, development & economic growth • Improve job opportunities • Increase public revenues Promote an environmentally sustainable community Ensure a choice of housing types & locations to all persons Implement key plans & strategies 13 Table 3 PCDC Goals and Implementation Plan Programs FY 2007108 - FY 201112012 r AX P� �oC�a `oe,°� Program Cate ones �a Q� Q�a •Ae 5i` a� Noe if MIMI Regional llighwav/Cross Town Connections __ s Local Roads _ Street Beautification I ® 0 A _ _ A Transit s� .-- -- _. 6 Bike/Pedestrian Parking I—Z A I s Public Salely Facilities Connnunity Buildings and Park Facifities Public Infrastructure 1Draina ie, Utilities, etc.) A s A A y A, 1fr4 is — "M vfl..� 1F M New Develovinent Incentives A B 0 0 6 & A A Business Retention and Expansion a 0 0 0 0 s b Business Attraction 0 0 0 0 0 1 If I Building Rehabilitation Assistance (URrvls, etc.) b 0 0 e _. A, e A Fa �ade hu rovement 0 0 0 e m isbon somix- 1-itiziirLIOLISMatei'itilsTestiiiv,,indReiiie(iiitioiI A d 0 AA � site-specific lnfiastructure hnvestnnent 0 A 0 h Ak S i AIL Property Assembly 0 1 i B i f a . gL _ __ _ A Yes - Uircct or htdirecl 14 +s Possibly - Diieet I Possibly - Indirect I I NO NMI Used alignment with PCIDC Coals to Illustrate relative priority Yes - Direct or Indirect 10 ® Possibly - Direct 7 L Possibly - Indirect 3 No 0 '15 Summary of Table 4 PCDC Implementation Plan Program Categories and Proposed Expenditures Non -Housing Current Five Four Year (FY 2008/09 -11/12) Program Categories and Expenditures' Year Plan Goal -Based' Proposed (in Thousands) $ %I $ % % Circulation, Landscaping and Parking Improvements $36,333 54`%1 $8,170 19`% Public Facilities and Infrastructure $25,667 38%j $5,160 12'%. Economic Development $3,549 5% $11,610 27% Building Rehabilitation $1,000 1'% $6,880 16% Site Preparation and Development $400 1% $11,180 26% a. Prgjected expenditures are rounded to and expressed in the nearest thousand; Current expenditure information provided by the Petaluma Community Development Commission. b. Percentages based on alignment with PCDC Coals (Table 3). Funding amount based on non -housing fiend balance as of 7/1/08 and estimated additional bonding capacity. Proposed Budget (to be determined) to more closely resemble Goal -Based Budget 16 Criteria and Specific Project Examples r Successful RedevelopmentCriteria or Projects 0 Meets Redevelopment Requirements w -I : Goals 1oa ad Priorities te 0 Maximizes Resources a Focuses Appropriate Resources , ` Targeted Housing projects to be considered separately, given diverse requirements and funding. A. city and Readiness B. Return Investment C. Catalytic Potential D. Community PlanningAchievement 19 + Downtown + Lower Reach + North River + Rivertront Warehouse District + Turning Basin Petaluma Community Development + Auto Mall/Industrial Avenue + Fairgrounds/Regency/Washington Corridor + Old Redwood Highway Commercial + Petaluma Blvd. North Corridor + Petaluma Blvd. South Corridor + Redwood Business Park/McDowell Corridor + Southpoint/Transport/Dynamic Industrial/Business Parks a I ml + Agency + Project Panner + Project Readiness 21 Economic Revitalization Criteria B @ Return on Investment (ROI) Return to Agency • Tax Increment Return to City a Sales Tax e Transient Occupancy Tax (TOT) a Other General Fund Revenues ® Reduced Costs/increased Efficiencies Leverage of Other Funding 9 Government: Federal, State, Regional ® Private C Non-Profit/Foundations 22 111 01 ION 1113%. Sm + Petaluma Auto Mall + Payran Reach + Union City Intermodal Station District + East Palo Alto Gateway Project 23 Table 6 Return on Investment and Specific Projects Petaluma Auto Plaza Payran Reach Flood Control Estimated Assessment District 19 Estimated PCDC Agency Investment $ 9,000,000 Reimbursement, $ 6,000,000 Promissory Note Value, contribution. and onsite improvements. Return on Investment Return to Agency Estimated Annual TI at • Tax Increment $ 73'000 Project Build Out Unquantifiable Stabilized Home Values Return to City • Sales Tax •TOT • Other General Pond Revenues • Reduced Costs/Increased Efficiencies Leverage of Other Funding • Government: Federal, State, Regional • Private • Nun -Profit Investment Repayment ---- -- - --- ----- - - - ----- Leverage Ratio (Other Funding compared to Agency tnvestment) Annual Sales Tax Estimated Reduced 2'300'000 (as of end of 2008) $ 100,000 Flooding Expenses (Annual) $4,()00,000 Estimated Value of Private $ 37,000,000 Approximate Federal Sector Development Funding 4 Years or Less 60 feats or Less 6 24 Table 6 (cont.) Return on Investment and Specific Projects Union City Intermodal Station District East Palo Alto Gateway Estimated Estimated Redevelopment Agency investment $ 17,500,000 Redevelopment Agency $ 31,000,000 Agency contribution. contribution. Return on Investment Return to Agency $ 5,000,000 Estimated Annual Tl at $ 3,000,000 Annual TI (FY2007/08) (incl. AV growth from area) Return to City • Sales Tax • `ro,r $ • Other General Fund Revenues • Reduced Costs/Increased Efficiencies Leverage o r O ther Funding • Government: Federal, State, Regional • Private • Non -Profit Investment Repayment - Leverage Ratio (Other Funding compared to Agency Investment) Estimated Annual Sales 3Estimated Annual Sales Tax I'_3,0(10 Tax at Retail Build Out $ ,000,000 at Retail Build Out Estimated Value of Estimated Value of Private $ 618,000,000 Private Sector $ 116,000,000 Sector Development (Not Development (Not incl. incl. adjacent housing) and BART Extension) Outside Public Funding 4 Years or Less 6 Years or Less 35 4 25 . l E f, ' f* Job Creation (Direct) Economic Spin -Offs Indirectly Catalyze Investment ® Indirectly Support Jobs/Business/Industry Growth Community Benefits ® Community -serving retail and services Publicly accessibly open space 26 Y Smart Growth ® Environmental Sustainability ® Placemaking Community Identity 27 ® Do these criteria accurately reflect your priorities? Do the case studies provide a sense of the trade offs for ROI between various types of projects? I t * Revise Implementation Plan * Refine Project Review Criteria and Process 29