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HomeMy WebLinkAbout8ARedevelopmentFiscalMergerCITY OF PETALUMA, CALIFORNIA E AGENDA BILL June 19, 21 Agenda Title: Meeting Date: Resolution Approving Proposed Redevelopment Plan Amendments June 19, 2006 and Fiscal Merger Meeting Time: ❑ 3:00 PM M 7:00 PM Category (check one): ❑ Consent Calendar ❑ Public Hearing ❑ New Business ® Unfinished Business ❑ Presentation Department: I Director: Contact Person: Phone Number: Administrative Services Stev mvichael Steven Carmichael 778-4352 Cost of Proposal: Account Number: N/A N/A Amount Budgeted: Name of Fund: Attachments to Agenda Packet Item: Final Report as a Plan Amendment and Merger Proposed Amendment to the Redevelopment Plan for Petaluma Community Development Project Proposed Amendment to the Redevelopment Plan for Central Business District Resolution Approving Report on Proposed Redevelopment Plan Amendments and Fiscal Merger Summary Statement: Staff and consultants have prepared a Report to Council for the City's two redevelopment projects: Central Business District (CBD) and Petaluma Community Development (PCD). If the proposed amendments are adopted, each of the project areas will continue to be governed by its own redevelopment plan, but the fiscal merger will allow PCDC to combine financial resources to eliminate adverse conditions in both project areas. If adopted, the plan amendments would accomplish the following: • Fiscally merge the CBD Redevelopment Project and the PCD Project. • Create a combined limit on outstanding bonded indebtedness in the two Project Areas and increase this limit to $250 million. • Repeal the time limits for incurring debt in the CBD Original Project Area and the PCD Project Area. • Extend by two years the time limits for plan activities and receipt of tax increment in the CBD Original Project Area. On April 17, 2006, PCDC approved the Preliminary Report on the proposed Redevelopment Plan Amendments and Fiscal Merger and the proposed Redevelopment Plan Amendments and authorized transmittal of the documents to affected taxing entities, Planning Commission and other interested parties. On June 5, 2006, PCDC and the City Council consented to hold a joint hearing on the proposed Plan Amendments and Fiscal Merger. That hearing is scheduled for July 17, 2006. Recommended City Council Action/Suggested Motion: Staff recommends that PCDC adopt the attached resolution approving the Report to Council and authorizing the transmittal of the Report to Council and the Plan Amendments to the City Council. Reviewed by Admin. Svcs. Dir: Date:(p I b( Reviewed b itV Attorney: Date:� Anur edby City Manager: Date: � � Toda 's Date: Revision W and Date Revised: File Code: 1Zob # D CITY OF PETALUMA, CALIFORNIA JUNE 19, 2006 AGENDA REPORT FOR PROPOSED REDEVELOPMENT PLAN AMENDMENTS AND FISCAL MERGER EXECUTIVE SUMMARY: 2. BACKGROUND: Staff and consultants have prepared a Report to Council for the City's two redevelopment projects: Central Business District (CBD) and Petaluma Community Development (PCD). If the proposed amendments are adopted, each of the project areas will continue to be governed by its own redevelopment plan, but the fiscal merger will allow PCDC to combine financial resources to eliminate adverse conditions in both project areas. If adopted, the plan amendments would accomplish the following: • Fiscally merge the CBD Redevelopment Project and the PCD Project. • Create a combined limit on outstanding bonded indebtedness in the two Project Areas and increase this limit to $250 million. • Repeal the time limits for incurring debt in the CBD Original Project Area and the PCD Project Area. • Extend by two years the time limits for plan activities and receipt of tax increment in the CBD Original Project Area. On April 17, 2006, PCDC approved the Preliminary Report on the proposed Redevelopment Plan Amendments and Fiscal Merger and the proposed Redevelopment Plan Amendments and authorized transmittal of the documents to affected taxing entities, Planning Commission and other interested parties. On June 5, 2006, PCDC and the City Council consented to hold a joint hearing on the proposed Plan Amendments and Fiscal Merger. That hearing is scheduled for July 17, 2006. 3. ALTERNATIVES: N/A 4. FINANCIAL IMPACTS: N/A 5. CONCLUSION: It is anticipated that the City Council will introduce ordinances adopting the Plan Amendments and Fiscal Merger after the close of the public hearing on July 17, 2006 and then conduct the second reading of the ordinances and adopt the Plan Amendments at its August 7, 2006 meeting. If written objections to the Amendments are received, introduction of the ordinances will be delayed pending the City Council's adoption of written findings in response as required by the CRL. 6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION: N/A RECOMMENDATION: Staff recommends that the Petaluma Community Development Commission ("PCDC") adopt the attached resolution approving the Report to Council and authorizing the transmittal of the Report to Council and the Plan Amendments to the City Council. 5/agenda/6-19-06 pede merger PROPOSED AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE PETALUMA COMMUNITY DEVELOPMENT PROJECT TO FISCALLY MERGE PROJECT AREAS SECTION 1. AMENDMENT OF REDEVELOPMENT PLAN. The Redevelopment Plan for the Petaluma Community Development Project, adopted by Ordinance 1725 N.C.S. on July 19, 1988, and subsequently amended by Ordinance 1972 N.C.S. adopted November 21, 1994, Ordinance 2100 N.C.S. adopted April 3, 2000, and Ordinance 2183 N.C.S. adopted June 7, 2004 (as so amended, the "PCD Plan" or the "Plan") is hereby amended as set forth in this amendment (thus "Amendment'), effective as of the effective date of the ordinance adopting this Amendment. SECTION 2. FISCAL MERGER Section VI.F is hereby added to the PCD Plan to read as follows: F. Fiscal Merger 1. Findings. The fiscal merger of the Petaluma Community Development Project Area ("PCD Project Area") and the Petaluma Central Business District Redevelopment Project Area for the purpose of pooling tax increment revenue is authorized by, consistent with, and will serve the legislative policies of, Health and Safety Code Section 33485 et seq., in that such fiscal merger will result in substantial benefit to the public and will contribute to the revitalization of blighted areas through the increased economic vitality of such areas and through increased and improved housing and economic opportunities in or near such areas. 2. Fiscal Merger of Proiect Areas. Pursuant to, and for the purpose of pooling tax increment revenue as described in Health and Safety Code Section 33485 et seq., the PCD Project Area is hereby fiscally merged with the project area (the "CBD Project Area") established and described in the Redevelopment Plan for the Petaluma Central Business District Redevelopment Project Area, adopted by the City Council by Ordinance 1221 N.C.S. (as subsequently amended, the "CBD Plan'). The PCD Project Area and the CBD Project Area are each referred to herein as a "constituent project area." Except as otherwise stated herein, each reference in this Amendment to a constituent project area shall mean such project area as originally established and as such project area may have been amended to add territory. This section authorizes the taxes attributable to each constituent project area which are allocated to the Agency pursuant to Health and Safety Code Section 33670(b) to be allocated for redevelopment in any of the constituent project areas for the purpose of paying the principal of, and interest on, indebtedness incurred by the Agency to finance or refinance, in whole or in part, the redevelopment project in any of the constituent project areas; except that any such taxes attributable to a particular constituent project area shall first be used to pay indebtedness in compliance with the terms of any bond resolution or other agreement pledging such taxes from that particular constituent project area which resolution or other agreement was adopted or approved by the Agency prior to the fiscal merger of the constituent project areas. Except as otherwise noted in this Section, tax increment revenue attributable to each constituent project area may be used for any lawful purpose in any of the constituent project areas. 3. Outstanding Bonded Indebtedness Limit. Notwithstanding anything to the contrary set forth in Section VI.E.3 of the Plan, in accordance with Health and Safety Code Section 33334.1, the amount of bonded indebtedness to be repaid in whole or in part from the combined allocation of taxes to the Agency pursuant to Health and Safety Code Section 33670 from all of the constituent project areas which in the aggregate can be outstanding at any one time shall not exceed $250,000,000 in principal amount, except by amendment of this Plan and the redevelopment plan for the other constituent project areas. 4. Limitation on Allocation of Tax Increment. Notwithstanding anything to the contrary set forth in Section VI.E.1 of the Plan, the taxes attributable to the constituent project areas that may be and are so allocated to the Agency pursuant to Health and Safety Code Section 33670(b) after the effective date of this Amendment shall not exceed a cumulative total equal to the sum of the individual limits on the allocation of taxes to the Agency as set forth in the redevelopment plans for each constituent project area, except by amendment of this Plan and the redevelopment plans for the other constituent project areas. SECTION 3. EFFECT OF AMENDMENT All provisions of the Plan not specifically amended or repealed in this Amendment shall continue in full force and effect. SECTION 4. SEVERABILITY If any provision of this Amendment or the application thereof to any person or circumstance is held invalid, the remainder of this Amendment, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Amendment are severable. The City Council of the City of Petaluma hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 5. PUBLICATION AND EFFECTIVE DATE The ordinance adopting this Amendment shall be published once, with the names of those City Councilmembers voting for or against it, in the , a newspaper of general circulation in the City of Petaluma, as required by law, and shall become effective thirty (30) days from and after its adoption. PROPOSED AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE PETALUMA CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AREA TO FISCALLY MERGE PROJECT AREAS SECTION 1. AMENDMENT OF REDEVELOPMENT PLAN The Redevelopment Plan for the Petaluma Central Business District Redevelopment Project Area, adopted by Ordinance 1221 N.C.S. on September 27, 1976, and subsequently amended by Ordinance 1973 N.C.S. adopted November 21, 1994, Ordinance 2092 N.C.S. adopted July 21, 1999, Ordinance 2116 N.C.S. adopted June 18, 2001, and Ordinance 2184 N.C.S. adopted June 7, 2004 (as so amended, the "CBD Plan' or the "Plan") is hereby amended as set forth in this amendment (this "Amendment'), effective as of the effective date of the ordinance adopting this Amendment. SECTION 2. FISCAL MERGER Section IX.F is hereby added to the CBD Plan to read as follows: F. Fiscal Merger 1. Findings. The fiscal merger of the Petaluma Central Business District Redevelopment Project Area ("CBD Project Area") and the Petaluma Community Development Project Area for the purpose of pooling tax increment revenue is authorized by, consistent with, and will serve the legislative policies of, Health and Safety Code Section 33485 et seq., in that such fiscal merger will result in substantial benefit to the public and will contribute to the revitalization of blighted areas through the increased economic vitality of such areas and through increased and improved housing and economic opportunities in or near such areas. 2. Fiscal Merger of Project Areas. Pursuant to, and for the purpose of pooling tax increment revenue as described in Health and Safety Code Section 33485 et seq., the CBD Project Area is hereby fiscally merged with the project area (the "PCD Project Area") established and described in the Redevelopment Plan for the Petaluma Community Development Project Area, adopted by the City Council by Ordinance 1725 N.C.S. (as subsequently amended, the "PCD Plan'). The CBD Project Area and the PCD Project Area are each referred to herein as a "constituent project area." Except as otherwise stated herein, each reference in this Amendment to a constituent project area shall mean such project area as originally established and as such project area may have been amended to add territory. This section authorizes the taxes attributable to each constituent project area which are allocated to the Agency pursuant to Health and Safety Code Section 33670(b) to be allocated for redevelopment in any of the constituent project areas for the purpose of paying the principal of, and interest on, indebtedness incurred by the Agency to finance or refinance, in whole or in part, the redevelopment project in any of the constituent project areas; except that any such taxes attributable to a particular constituent project area shall first be used to pay indebtedness in compliance with the terms of any bond resolution or other agreement pledging such taxes from that particular constituent project area which resolution or other agreement was adopted or approved by the Agency prior to the fiscal merger of the constituent project areas. Except as otherwise noted in this Section, tax increment revenue attributable to each constituent project area may be used for any lawful purpose in any of the constituent project areas. 3. Outstanding Bonded Indebtedness Limit. Notwithstanding anything to the contrary set forth in Section XVI of the Plan, in accordance with Health and Safety Code Section 33334.1, the amount of bonded indebtedness to be repaid in whole or in part from the combined allocation of taxes to the Agency pursuant to Health and Safety Code Section 33670 from all of the constituent project areas which in the aggregate can be outstanding at any one time shall not exceed $250,000,000 in principal amount, except by amendment of this Plan and the redevelopment plan for the other constituent project areas. 4. Limitation on Allocation of Tax Increment. Notwithstanding anything to the contrary set forth in Section IX.C.2 of the Plan, the taxes attributable to the constituent project areas that may be and are so allocated to the Agency pursuant to Health and Safety Code Section 33670(b) after the effective date of this Amendment shall not exceed a cumulative total equal to the sum of the individual limits on the allocation of taxes to the Agency as set forth in the redevelopment plans for each constituent project area, except by amendment of this Plan and the redevelopment plans for the other constituent project areas. SECTION 3. EFFECT OF AMENDMENT All provisions of the Plan not specifically amended or repealed in this Amendment shall continue in full force and effect. SECTION 4. SEVERABILITY If any provision of this Amendment or the application thereof to any person or circumstance is held invalid, the remainder of this Amendment, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Amendment are severable. The City Council of the City of Petaluma hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 5. PUBLICATION AND EFFECTIVE DATE The ordinance adopting thus Amendment shall be published once, with the names of those City Comicilmembers voting for or against it, in the , a newspaper of general circulation in the City of Petaluma, as required by law, and shall become effective thirty (30) days from and after its adoption. RESOLUTION NO. PETALUMA COMMUNITY DEVELOPMENT COMMISSION APPROVING THE REPORT TO COUNCIL ON THE PROPOSED REDEVELOPMENT PLAN AMENDMENTS AND FISCAL MERGER AND TRANSMITTING THE REPORT AND PLAN AMENDMENTS TO THE CITY COUNCIL OF THE CITY OF PETALUMA WHEREAS, the Petaluma Community Development Commission ("PCDC") has been designated as the official redevelopment Agency in the City of Petaluma to carry out the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) ("CRL„ ). WHEREAS, the City Council of the City of Petaluma (the "City Council") originally approved and adopted the Redevelopment Plan for the Petaluma Central Business District Redevelopment Project Area ("CBD Project Area") by Ordinance 1221 N.C.S. on September 27, 1976, and subsequently amended such redevelopment plan by Ordinance 1973 N.C.S. adopted November 21, 1994, Ordinance 2092 N.C.S. adopted July 21, 1999, Ordinance 2116 N.C.S. adopted June 18, 2001, and Ordinance 2184 N.C.S. adopted June 7, 2004 (as so amended, the "CBD Plan"); WHEREAS, the City Council originally approved and adopted the Redevelopment Plan for the Petaluma Community Development Project (the "PCD Project Area") by Ordinance 1725 N.C.S. adopted on July 18, 1988, and subsequently amended such redevelopment plan by Ordinance 1972 N.C.S. adopted November 21, 1994, Ordinance 2100 N.C.S. adopted April 3, 2000, and Ordinance 2183 N.C.S. adopted June 7, 2004 (as so amended, the "PCD Plan"); WHEREAS, PCDC staff and consultants have prepared proposed plan amendments ("Plan Amendments") that would effectuate a fiscal merger of the CBD Project Area and the PCD Project Area and extend and modify certain time and fiscal limits for the redevelopment plans; WHEREAS, on April 17, 2006, PCDC approved a Preliminary Report on the proposed Plan Amendments prepared pursuant to Health and Safety Code Section 33344.5, and authorized transmittal of the Preliminary Report and the proposed Plan Amendments to affected taxing entities, the Planning Commission, and interested parties; WHEREAS, PCDC staff and consultants have conducted consultations with affected taxing entities and with project area residents, property owners and community organizations; and WHEREAS, on June 5, 2006, PCDC and the City Council agreed to hold a joint public hearing on the proposed Plan Amendments and Fiscal Merger. NOW, THEREFORE, the Petaluma Community Development Commission hereby resolves as follows: Section 1. PCDC hereby approves and adopts the Report to Council. Section 2. The Executive Director of PCDC is authorized and directed to transmit the Report and the Proposed Plan Amendments to the City Council of the City of Petaluma.