HomeMy WebLinkAbout8AFiscalMergerCITY OF PETALUMA, CALIFO"IA
August7, 200
AGENDA BILL
Agenda Title:
Adoption Of Findings In Response To Written Objections To
Meeting Date:
Redevelopment Plan Amendments For The Central Business District And
August 7, 2006
Petaluma Community Development Project Areas; Receipt Of A
Supplemental Report To Council; Introduction Of Ordinances Adopting
Meeting Time: ❑ 3:00 PM
Amendments To The Redevelopment Plans For The Central Business
IX 7:00 PM
District And Petaluma Community Development Project Areas To Fiscally
Merge The Project Areas; Introduction Of Ordinances Eliminating Time
Limits For Establishment Of Debt For The Petaluma Community
Development And Original Central Business District Project Areas Pursuant
To SB 211 And Extending The Time Limit For Plan Effectiveness And Tax
Increment Receipt For The Original Central Business District Project Area
Pursuant To SB 1096
Categorv: ❑ Presentation ❑ Consent Calendar ❑ Public Hearing Z Unfinished Business ❑ New Business
Department:
Director:
Contact Person:
Phone Number:
Admin Services
Steven Carmichael
Steven Carmichael
778-4352
Cost of Proposal:
Account Number:
Amount Budgeted:
Name of Fund:
Attachments to Agenda Packet Item:
1. Resolution Adopting Findings in Response to Written Objections on Plan Amendments (Exhibit A — Findings,
Exhibit B — Letter from Diane Reilly Torres)
2. Supplemental Report to Council
3. Ordinance Adopting Amendment to the Redevelopment Plan for the CBD to effectuate the fiscal merger
4. Ordinance Adopting Amendment to the Redevelopment Plan for the PCD to effectuate the fiscal merger
5. Ordinance Eliminating the time limit for incurring debt in the PCD and the original CBD pursuant to SB 211
6. Ordinance Extending time limit for plan effectiveness and tax increment receipt for the original CBD pursuant
to SB 1096
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... ...................
Summary Statement:
The City Council and the Petaluma Community Development Commission (PCDC) are considering amendments
to the Central Business District (CBD) and Petaluma Community Development (PCD) Redevelopment Plans. If
adopted by the City Council, the Plan Amendments will accomplish the following:
• Fiscally merge the CBD and PCD Project Areas.
• Combine the limit on outstanding bonded indebtedness in the two Project Areas and increase this combined
limit to $250 million.
• Repeal the time limit for incurring debt in the CBD Original and PCD Project Areas, as authorized by Senate
Bill 211.
• Extend by two years the time limit for plan effectiveness and tax increment receipt for the CBD Original
Project Area, as authorized by Senate Bill 1096.
Please refer to the previously transmitted Report to Council for details regarding content, purpose and impact of
the proposed Plan Amendments.
Recommended City Council Action/Suggested Motion:
1. Adopt a resolution adopting findings in response to written objections to the proposed Redevelopment Plan
Amendments and Fiscal Merger.
2. Accept a Supplemental Report to Council.
3. Waive reading and introduce ordinances adopting amendments to the Redevelopment Plans for the Central
Business District Project Area and the Petaluma Community Development Project Area to effectuate a fiscal
merger of the project areas.
4. Waive reading and introduce an ordinance eliminating the time limit for incurring debt in the Petaluma
Community Development Project Area and the Original Central Business District Project Area pursuant to SB
211.
5. Waive reading and introduce an ordinance extending the time limit for plan effectiveness and tax increment
receipt for the Original Central Business District Project Area pursuant to SB 1096.
Reviewed by-Admin. Svcs. Dir: Reviewed by City Attorney: Approved by City Manager:
Date: 7 kA 0 6 Date: Date: 'f 06
CITY OF PETALUMA, CALIFORNIA
AUGUST 7, 2006
AGENDA REPORT
FOR
FISCAL MERGER OF THE PCD AND CBD REDEVELOPMENT AREAS
1. EXECUTIVE SUMMARY:
In April, the City began the process of fiscally merging the CBD and PCD. Staff has held
several public hearings with property owners and other interested citizens. The request before
you to finalize the fiscal merger is the last step in this process approval.
2. BACKGROUND:
The City Council and the Petaluma Community Development Commission (PCDC) are
considering amendments to the Central Business District (CBD) and Petaluma Community
Development (PCD) Redevelopment Plans. If adopted by the City Council, the
Plan Amendments will accomplish the following:
• Fiscally merge the CBD and PCD Project Areas.
• Combine the limit on outstanding bonded indebtedness in the two Project Areas and increase
this combined limit to $250 million.
• Repeal the time limit for incurring debt in the CBD Original and PCD Project Areas, as
authorized by Senate Bill 211.
• Extend by two years the time limit for plan effectiveness and tax increment receipt for the
CBD Original Project Area, as authorized by Senate Bill 1096.
Please refer to the previously transmitted Report to Council for details regarding content,
purpose and impact of the proposed Plan Amendments.
3. ALTERNATIVES:
N/A
4. FINANCIAL IMPACTS:
N/A
CONCLUSION:
N/A
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION:
N/A
3
RECOMMENDATION:
a) Consider and adopt findings in response to written objections.
b) Accept the Supplemental Report to Council.
c) Waive reading and introduce ordinance adopting amendments to the Redevelopment Plan
for the Central Business District Project Area to effectuate a fiscal merger.
d) Waive reading and introduce ordinance adopting amendments to the Redevelopment Plan
for the Petaluma Community Development Project Area to effectuate a fiscal merger.
e) Waive reading and introduce an ordinance eliminating the time limit for incurring debt in
the Petaluma Community Development Project Area and the Original Central Business
District Project Area pursuant to SB 211.
f) Waive reading and introduce an ordinance extending the time limit for plan effectiveness
and tax increment receipt for the Original Central Business District Project Area pursuant
to SB 1096.
S:/agenda/8-7-06 pcdc merge
RESOLUTIONNO. N.C.S.
OF THE CITY OF PETALUMA, CALIFORNIA
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
ADOPTING FINDINGS IN RESPONSE TO WRITTEN OBJECTIONS
WHEREAS, 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, Petaluma Community Development Commission ("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
the City Council and PCDC held a joint public hearing on the proposed Plan
Amendments on July 17, 2006 (the "Public Hearing");
WHEREAS, pursuant to Section 33363 of the California Health and Safety Code,
the City Council is required to respond to written objections to the adoption of the
proposed Plan Amendments received prior to the close of the public hearing on the Plan
Amendments;
WHEREAS, the City Council has considered all written objections to the Plan
Amendments that the City Council and PCDC received prior to the close of the Public
Hearing;
WHEREAS, responses to such written objections are set forth in Exhibit A to this
Resolution and are hereby incorporated herein.
NOW, THEREFORE, the City Council of the City of Petaluma hereby resolves as
follows:
847883-1 1 15
Section 1. The City Council has reviewed all written objections to the adoption of the
Plan Amendments received by the City Council and PCDC prior to the close of the Joint
Public Hearing held on July 17, 2006, and hereby adopts the findings set forth in Exhibit
A attached hereto and incorporated herein in response to those written objections.
847883-I 2 b
Exhibit A
FINDINGS IN RESPONSE TO WRITTEN OBJECTIONS
The City Council of the City of Petaluma adopts the following findings in
response to written objections submitted to the City Council and the Petaluma
Community Development Commission ("PCDC") prior to the close of the Joint Public
Hearing held on July 17, 2006 regarding the adoption of proposed amendments to the
Redevelopment Plan for the Petaluma Central Business District Redevelopment Project
Area and the Redevelopment Plan for the Petaluma Community Development Project
(collectively the "Plan Amendments"). These findings are based on the entire
administrative record of proceedings before the City Council regarding the Plan
Amendments.
Section 1. The City Council acknowledges receipt of a letter dated July 10, 2006 from
Diane Reilly Torres, a copy of which is attached hereto as Exhibit B (the "Reilly Torres
Letter").
Section 2. The City Council hereby makes the findings described below in response to
the objections raised in the Reilly Torres letter.
A. Procedural Concerns Relating to Planning Commission Report on Conformity
with the General Plan (Items (i), (ii), (iii) and (iv) marked on Exhibit B.)
The City Council finds that the proceedings of the Planning Commission with respect to
its report and recommendations on the conformity of the Plan Amendments with the
Petaluma General Plan conform to the requirements of law, including without limitation,
California Community Redevelopment Law (Health and Safety Code Section 33000 et
seq.) (the "CRL").
This finding is based upon the following:
(a) CRL Section 33346 requires redevelopment plans and plan amendments to
be submitted to the Planning Commission for review of conformity with the community's
general plan. PCDC transmitted the proposed Plan Amendments to the Planning
Commission as required. The Planning Commission considered the proposed Plan
Amendments at a regularly noticed meeting held on June 27, 2006. A copy of the
Planning Commission report is included in the Supplcmcnt to the Report to Council
which is on file with the City Clerk.
(b) The CRL requires the Preliminary Report prepared in connection with
proposed redevelopment plans and plan amendments to be transmitted to affected taxing
entities and to the City Council, but does not require the Preliminary Report to be
submitted to the Planning Commission.
s47se3-1 3
(c) Consideration of the conformity of the Plan Amendments with the General
Plan was included on the agenda for the June 27, 2006 Planning Commission meeting
and noticed in the same manner as all Planning Commission meetings are noticed. The
CRL does not require any additional notice for this action. In accordance with usual
practice for Planning Commission meetings, the Planning Commission agenda and
associated materials were made available to the Commission and the public in advance of
the Planning Commission meeting. An informational packet on the Agenda items was
available from the City Clerk in advance of the meeting. This packet included the Plan
Amendments, a memorandum regarding the Plan Amendments from PCDC Executive
Director Mike Bierman to the Planning Commission, and an Executive Summary of the
Report to Council. In addition, both the Preliminary Report and the Report to Council
were made available for review prior to the June 27, 2006 Planning Commission meeting.
The proposed Plan Amendments were submitted to the Planning Commission on June 20,
2006 in the informational packet described above, well before the Plan Amendments
were submitted to the City Council on July 11, 2006.
(d) The proposed Plan Amendments do not alter land use designations in the
Project Areas, and thus will not affect the conformity of the Redevelopment Plan
Amendments with the General Plan as it currently exists and as it may be updated. Under
the Plan Amendments, land uses, design standards and development controls in the
Project Areas will continue to be governed by applicable City and County standards. At
the time of their adoption, the PCD and CBD Redevelopment Plans were found to be in
conformance with the General Plan. Both of these Redevelopment Plans specify that land
use designations applicable to the Project Areas shall be in accordance with the standards
of the City or County, as applicable. In order to maintain conformity as General Plan
updates occur, the Redevelopment Plans defer to City and County General Plans as they
exist and as they may be updated. The proposed Plan Amendments make no changes to
the land use authority set forth in the Redevelopment Plans. Therefore, as updates to the
General Plan are considered, such changes are addressed in the General Plan update
process and the do not require amendment to the Redevelopment Plans to maintain
consistency.
B. CEQA Exemption for Proposed Plan Amendments (Items marked (v) on Exhibit
B.)
The City Council finds that the PCDC and City Council determinations that the proposed
Plan Amendments are exempt from CEQA review are valid.
This finding is based upon the following:
(a) The potential environmental effects of the Redevelopment Plans were
analyzed in previous environmental reviews, including the Petaluma General Plan
Environmental Impact Report (EIR), the program level EIR for the Central Petaluma
Specific Plan, the PCD Project EIR and the CBD Plan Amendment EIR.
847883-1 4 9
(b) The proposed Plan Amendments do not propose new projects or activities, do
not alter the redevelopment programs described in the Redevelopment Plans, and do not
propose any land use changes to those already analyzed in the current General Plan.
(c) While the proposed Plan Amendments are considered exempt from CEQA,
all specific projects proposed for development pursuant to the Redevelopment Plans will
require environmental review in accordance with CEQA, and those that may have
potentially significant environmental impacts will require a project -specific EIR. Such
project EIRs will consider floodplain and water availability issues as applicable.
C. Fundingfor or Ongoing Maintenance Costs for New Capital Improvements. (Items
marked (vi) on Exhibit B.)
The City Council finds that the availability of resources for ongoing maintenance will be
undertaken in connection with PCDC's and the City's capital improvement budget and
implementation plan review, and that it is not necessary to evaluate the availability of
such resources in connection with the Plan Amendments.
The City Council further finds that ongoing maintenance costs for new capital
improvement projects funded through redevelopment will be assumed by the responsible
governmental entities and special districts, and will be funded in part through pass
through payments made to such affected taxing entities, and after the redevelopment
projects are completed, through increased property taxes generated by the expanded tax
base resulting from redevelopment. Further, major improvements to existing deteriorated
and inadequate infrastructure will reduce ongoing maintenance costs.
D. Riverfront Property Assistance. (Items marked (vii) on Exhibit B.)
The City Council finds that in conformity with the CRL Section 33426.5(b), the existing
Redevelopment Plans, the Plan Amendments and Redevelopment Programs do not
include redevelopment assistance to parcels of land of five acres or more that have not
been previously developed for urban use and that will, when developed, generate sales or
use tax, unless the principal permitted use of the development is office, hotel,
manufacturing, or industrial.
Further, the PCDC has not provided direct assistance to the Riverfront Property, a mixed -
use housing and retail development proposed to be constructed on a site that has not
previously been developed for urban use. Further, as currently envisioned, the principal
use of the property would be residential (400 units), with 20,000 square feet of
commercial development.
847883-1 5
E. Concerns Related to Report to Council Maps; Building Requirements for
Floodplain (Item (viii) on Exhibit B.)
The City Council finds that the Plan Amendments do not alter building requirements, and
that all projects proposed for development pursuant to the Redevelopment Plans will be
required to comply with all applicable planning, zoning and building requirements.
F. Questions Regarding Redevelopment Priorities and Programs (Items marked (ix)
on Exhibit B.)
The City Council finds that the Plan Amendments do not alter the Redevelopment
Programs and do not propose new projects or activities. Specific projects and programs
to be undertaken or assisted by PCDC will be considered in the context of the PCDC
budget and implementation plan review and will be considered on an individual basis as
proposals for particular projects are presented to the City Council and PCDC.
847883-1 6 /
axwi lalt 6
FAXED TO CITY CLERK AND PLANNING GEORGE 7.10-06
Monday,10 July 2006
To: Petaluma Community Development Commission (PCDC)
City Clerk's Office City of Petaluma
11 English Street Petaluma, Ca. 94952
Re: .Opposition to the Proposed Redevelopment Plan Amendments and Fiscal Merger
Dear Commissioners,
I support the purpose of redevelopment, which is to expand the supply of low- and moderate -Income
housing, to expand employment opportunities for jobless, underemployed, and low-incomepersons,
and to provide an environment for the social, economic, and psychological growth and well-being of all
citizens. My reasons for opposing the Proposed Redevelopment Plan Amendments and Fiscal Merger:
➢ On April 17, 2006, the PCDC approved the Preliminary Report on the proposed Redevelopment
Plan amendment 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, the PCDC and the City Council consented to hold a joint hearing scheduled for
July 17, 2006, on the proposed Plan Amendments and Fiscal Merger
➢ On June 19, 2006, the PCDC was presented and approved the Final Report as a Plan Amendment
and Merger. to be transmitted to the City Council. The Report to Council includes the statutory
requirements of the Planning Commission report and recommendations but it will be provided to the
City Council in a supplement to the report.
➢ On June 27, 2006 the Planning Commission was asked to adopt a resolution finding that the
proposed Fiscal Merger of the Ciity's Redevelopment Project Areas and Amendment of the
Redevelopment Plans conform to the General Plan of the City of Petaluma. The Planning
Commissioners made the findings without being provided the approved Preliminary Report on the
(1 proposed Redevelopment Plan amendment and Fiscal merger.
California Health & Safety Code Section 33346. Report and Recommendation of Planning Commission.
Before the redevelopment plan of each project area Is submitted to the legislative body, it shall be
submitted to the planning commission for Its report and recommendation concerning the redevelopment plan and
its conformity to the general plan adopted by the planning commission orthe body. The planning commission
may recommend for or against the approval of the redevelopment plan.
t I�➢ The Redevelopment Plan of each project area was submitted to the legislative body and was never
submitted to the Planning Commission which is in violation of the above law and I ask this be
remidied prior to the joint hearing scheduled for July 17, 2006.
Pursuant to Section 33362. Filing Objections to the Plan. At any time not later than the hour set
for hearing objections to the proposed redevelopment plan, any person may file in writing with
the clerk of the legislative body a statement of his objections to the proposed plan, I am
attaching my comments to the Planning Commission, what that were provided and my furthur
comments, concerns and questions for the record to support my opposition to the proposed Plan
Amendment and Fiscal merger. Sincerely, E)fa*t&7ZaL Ty 7crrek
-1—
The 06-07 Budget says the primary reason for combining the areas is financial. The CBD
has inadequate tax Increment to finance additional capital projects... so projects needing
funding in the original CBD can be completed.... The PCDC plans to issue $10 million in
new TAB's to complete the new elects In the 5 year Redevelopment Plan.
Cj X1 ➢ Please identify the New Protects and their funding sources.
All the Redevelopment Projects in the CIP for NEW DEVELOPMENT under funding
sources say:
The PCDC is unable to provide ongoing maintenance funds for this project. PCDC funds can
only be used to construct and/or reconstruct infrastructure. Therefore the cost for ongoing
maintenance of this project will fall to the General Fund. Due to demands on General Fund
CV l resources, the future maintenance of this project will be difficult. No resource has been
Identified for ongoing maintenance of this project.
Who is going to pay for the ongoing maintenance for $40 million roads that only benefit the
developers?
A Redevelopment Agency may not pay the normal maintenance and operations cost of public
V I 1 improvements or assist a development on 5 acres or more if the land has not been previously
developed for urban use and, after development, the property will generate sales taxes, unless the
principal use is for office, hotel, manufacturing, or Industrial. The Riverfront Property is over 5 acres
26 June, 2006 emailed to Planning Commission who were not transmitted the Preliminary Report on
the proposed Redevelopment Plan amendment and Fiscal merger and the proposed Redevelopment
Plan Amendments and documents. It is outrageous "pulling the wool' over their eyes. Shame on you
To: Planning Commissioners: Asselmeler, Dargie, Kosewic, Mills, Nau, Sullivan, and von Raesfeld
From: Diane Reilly Torres
RE: Planning Commission Meeting Tuesday, June 27, 2006
I am writing you regarding the agenda item titled Request to adopt a resolution finding that the
proposed Fiscal Merger of the City's Redevelopment Project Areas and Amendment of the
Redevelopment Plans conform to the General Plan of the City of Petaluma (Steven Carmichael)
1) Are you being asked to find that the proposed Fiscal Merger of the City's Redevelopment Project
Areas and Amendment of the Redevelopment Plans conform to the current General Plan or the
new General Plan?
2) 1 read the Public Notice in the newspaper that there is a City Council hearing but did not see one
L j jl about tomorrow night's meeting? Was a notice published and were the property owners or
/ interested parties noticed?
3) [went to the city website to view the Planning Commission June 27, 2006 Agenda with Documents
but there are no documents for the above Agenda item. Does that mean there is no staff report? No
notice, no documents and not knowing what General Plan this Is conforming to makes it almost
Impossible for the public to comment on, but I will give it a shot.
V) The existing moratorium on new development in the Foodplain and the fact that our future water
supply is not sufficient to accommodate future development is enough to disagree that no further
environmental review is required because the Plan Amendments and Fiscal Merger do not propose any
land use changes to those already analyzed in the current General Plan, do not modify the existing
Redevelopment Programs, no substantial change in circumstances has occurred and no new
Information of substantial Importance to he project Is available that was not known at the time the prior
General Plan, CPSP, and Redevelopment Plan EIR's were certif led (Page X-1 Plan Amendments
and Fiscal Merger)
In addition saying there has been no change in circumstances and no new information.contradicts page
J 1-12 of the Plan Amendments and Fiscal Merger that states "The existing General Plan .:. its context
and setting have changed The City is now updating the General Plan to reflect changed
C ) Also the Plan Amendments and Fiscal Merger are modifying the Projects and Activities. The April 19,
2004 PCDC Mid -Term Review of the PCD Five Year Implementation Plan referred to In the Plan
Amendments and Fiscal Merger does not have a Rainier Project or a Caulfield Extension to
Petaluma BI. Project butdoes have a Corona Road Highway Improvement Project and a Caulfield
Extension to the Petaluma River and specifically states 'This Project does not include a new
southern river crossing.".
/ J •j (`� Why does the map on page 11.16 of the Plan Amendments and Fiscal Merger only show the
1 Flood plain but does not show the Floodway that is in the Floodplain7 This is misleading, as there are
different requirements for building in the Floodway and building in the Floodplain.
An example of blight on page 100 of the Plan and Merger is a picture of Youngstown Mobilehome Park.
�� X� flooded I ask specifically what Redevelopment program or project is going to help them?
PCDC CIP FY 2006.07 The City of Petaluma owns 25 acres of land where RESA was to be built, but
e current budget says there are no funds available forongoing maintenance for any new parks
There are also no funds available to provide ongoing maintenance for the PCDC Capital Improvement
LJ Projects and the costs for ongoing maintenance will fall to the General Fund, Public Works
Maintenance or the Park and Rec Department budgets. How is the ongoing maintenance going to be
funded for new roads built for future development?
Why Is the City moving forward on building new roads for new development when there are no funds for
maintenance but will not move forward on ballfields for kids on property the city owns?
A Redevelopment Agency may not pay the normal maintenance and operations cost of public
improvements or assist a development on 5 acres or more if the land has not been previously
\ developed for urban use and, after development, the property will generate sales taxes, unless the
principal use is for office, hotel, manufacturing, or Industrial. The Riverfront Property is over 5 acres
In closing, please remember the reason for redevelopment is to alleviate blight, and the public policy of
this State that such rehabilitation or redevelopment programs shall not be undertaken and operated in
such a manner as to exchange new slums for old slums or as to congest individuals from one slum to
another slum. Diane Reilly Torres
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Supplemental Report to Council on the
Plan Amendments and Fiscal Merger
A. Purpose and Summary of the Supplemental Report to Council
The Supplemental Report was prepared to clarify and update the Report to Council on the Petaluma Plan
Amendments and Fiscal Merger (Report to Council).
The Supplemental Report is organized as follows:
Section A describes the purpose of the Supplemental Report; and its relevance to the Report to Council on
the Petaluma Plan Amendments and Fiscal Merger.
Section B provides clarification and updates to Chapter II, Existing Conditions, of the Report to Council.
Section C provides an update to Chapter VIII, the Planning Commission Report and Recommendation.
Section D provides clarification and updates to the photo documentation of existing blight conditions,
contained in Appendix B, Photographic Documentation of Existing Conditions, of the Report to Council
Section E outlines potential redevelopment projects and activities to guide future PCDC planning efforts,
and will be considered as part of the PCDC's Five Year Implementation Plan to be prepared prior to
July 1,2007.
One purpose of the Report to Council is to support a finding by the PCDC and City Council that the two
redevelopment Project Areas, the Central Business District (CBD) and the Petaluma Community
Development (PCD), continue to exhibit adverse physical and economic conditions. The PCDC's
redevelopment program is focused on alleviating these conditions, and the PCDC needs the proposed
redevelopment amendments and fiscal mergers in order to improve the Project Areas.
The revisions to Chapter 11, Existing Conditions, clarify statements regarding substandard lots and
buildings, impeded vehicular access and deteriorated street conditions, inoperable rail tracks, and
deficient infrastructure.
The Petaluma Planning Commission adopted its report and recommendation on the conformity of the
Redevelopment Plan Amendments with the City's General Plan after the Report to Council was submitted
to the City Council. As such, the report and recommendations of the Petaluma Planning Commission, as
required by Sections 33352 (h) and 0) of the California Community Redevelopment Law (CRL), are
included in the Supplemental Report.
The revisions to Appendix B, Photographic Documentation of Existing Conditions, include a list of
photographs found in Appendix B of the Report to Council. Comments received on the photographs
suggest the inclusion of some photographs could result in a misunderstanding regarding the intent of the
PCDC in its implementation of the Redevelopment Plan Amendments. The Clarification of Photographic
Documentation Section is divided into four categories: Building Enhancements, Infrastructure, Industrial
Lands and Approved/Completed Enhancements, to better characterize the PCDC's redevelopment
intentions.
Supplemental Report to Council on the Plan Amendments and Fiscal Merger
/q
Finally, suggestions for additional redevelopment projects and activities were submitted and include
efforts and activities that would promote development of the City's infrastructure, the preservation of
Petaluma's unique historical character, development of commercial uses compatible with existing uses,
and improvement of access to and awareness of the river.
B. Clarification of Existing Conditions
Chapter II of the Report to Council describes existing conditions within the CBD and the PCD
Project Areas. It presents information on conditions in the Project Areas, including blighting conditions at
the time of Redevelopment Plan adoption and amendment, redevelopment activities to date, and a
description of remaining blighting conditions within the boundaries of the Project Areas.
Substandard Lots and Buildings and Incompatible Uses
Page II-28 of the Report to Council makes reference to obsolete buildings, specifically stating, "Many
existing commercial buildings have been built on long, narrow lots and, as a result, have a physical
configuration that is inappropriate for modern retailing purposes."
The statement should be removed. While the lots referenced are indeed long and narrow, they are suitable
for current tenants, and the fact that they are long and narrow does not currently impede their proper
usefulness.
2. Poor Vehicular Access, Circulation Deficiencies and Street Conditions
Page II-17 of the Report to Council states, "Early street pattern has created accessibility problems and
circulation issues near the river."
The statement should read, "Early street pattern has created accessibility, circulation and infrastructure
related issues near the river. Additionally, a lack of needed street upgrades in the area has exacerbated
access and circulation issues."
Page II-38 of the Report to Council states, "The overall street grid in the CBD is incomplete and
fragmented, with many dead end streets near the river's edge."
The statement should read, "The overall street grid in the CBD is incomplete and fragmented, with two
dead end streets near the river's edge. Street improvements are needed to improve circulation within the
areas bordering the Petaluma River."
3. Rail Spur/Tracks
Page II-30 and II-58 of the Report to Council reference an inactive rail spur along Water Street, and
abandoned and inoperable railroad tracks along Hopper Street, Petaluma Boulevard South near
Highway 101, and Petaluma Boulevard South and South Point Boulevard. During the time of the existing
conditions field survey, the rail spur and train tracks were inactive and inoperable. Since the existing
conditions field survey, some tracks have been removed, and the PCDC has developed plans to operate a
light rail system on the remaining rail spur and train tracks. PCDC will continue to maintain, enhance,
and preserve transit and industrial related uses.
Supplemental Report to Council on the Plan Amendments and Fiscal Merger
I5.
4. Infrastructure
Page II-58 of the Report to Council states the wastewater treatment plant serving the City is located in the
PCD. The wastewater treatment plant, the Ellis Creek Water Recycling Facility, which serves properties
within the PCD and CBD Project Areas, is located just outside the PCD Project Area boundary, roughly
at the intersection of Lakeville Highway and Pineview Way. See Figure 1, below, for the location of the
project site.
Figure 1
Ellis Creek Water Recycling Facility
Location Map
QulckTrneTM- and a
TIFF (LZW) decompressor
are needed to see this picture.
Source: Water Resources and Conservation, City of Petaluma
Supplemental Report to Council on the Plan Amendments and Fiscal Merger
I b
C. Update of Planning Commission Report and
Recommendations
On June 27, 2006, the Planning Commission of the City of Petaluma found that the proposed
Amendments to the City's Redevelopment Plans conform to the City's General Plan.
Specifically, the Planning Commission found the proposed Plan Amendments and Fiscal Merger do not
alter land use designations in the Project Areas, and thus will not affect the conformity of the
Redevelopment Plans with the General Plan. Moreover, the Planning Commission found that the
Redevelopment Program has been designed to coordinate with and directly support the implementation of
the City's General Plan and the Central Petaluma Specific Plan. The proposed Plan Amendments and
Fiscal Merger will support the Redevelopment Program by enabling revitalization projects that would
otherwise be financial infeasible and, in doing so, will support the City of Petaluma General Plan as it
currently exists and as it may be updated. See attached Planning Commission resolution, which has been
deemed the Planning Commission's report and recommendations.
D. Clarification of Photographic Documentation
The Report to Council, and particularly the photographic documentation presented in Appendix B, does
not indicate the PCDC's intention to demolish any of the specific structures and buildings depicted in the
photographs. In fact, the PCDC intends to continue its policy to support the enhancement and upgrading
of existing buildings important to Petaluma's character and the preservation of historic buildings within
the boundaries of the Project Areas. The purpose of including the photographic documentation in the
Report to Council is to visually represent the documentation provided in Chapter II on the conditions in
the Project Areas.
Appendix B of the Report to Council includes 203 photographs, illustrating adverse conditions within the
CBD and the PCD during the time of field survey. The majority of the photos were taken from
January 2005 to April 2005, with additional photographs on flooding taken in December 2005. The
photographs illustrate a wide variety of conditions present in each of the Project Areas. Conditions
illustrated in the photographs include, but are not limited to:
❑ Dilapidated and Deteriorated Buildings (CRL Section 33031(a)(1))
❑ Factors thatlnbibitProper Use of Buildings or Lots (CLR Section 33031(a)(2))
❑ Vacant and Underutilized Lots (CRL Section 33031(a)(2), 33031(b)(2))
❑ Vacant acid Abmidoned Buildings (CRL Section 33031(a)(2), 33031(b)(2))
❑ Inadequate Public Improvements (CRL Section 33030(c)t)
Comments received on the photographs suggest the inclusion of some photographs could result in a
misunderstanding of the PCDC's intent. Further clarification is provided below. The Clarification of
Photo Documentation Section is divided into four categories: Building Enhancements, Infrastructure,
Industrial Lands and Approved/Completed Enhancements.
Please refer to Appendix B of the Report to Council for actual photographs; only the photo numbers are
listed in the subsections below.
The existence of inadequate public improvements is no longer a stand alone blight factor. However, CRL Section 33030(c)
allows the existence of public improvements, parking facilities or utilities to be considered when it can be demonstrated that
they contribute to blight.
Supplemental Report to Council on the Plan Amendments and Fiscal Merger
1-7
1, Building Enhancements
The PCDC recognizes the importance of structures that reflect Petaluma's character and history. As such,
the PCDC will encourage property owners to upgrade buildings, undertake seismic retrofits, implement
regular maintenance, undertake fagade improvements, and preserve structures, where needed and
appropriate, as shown in photos 3, 4, 5, 7-9, 11, 16, 17, 19, 21, 24, 26, 28-37, 39, 40, 41, 45, 46, 47-48,
49, 50, 51, 52, 56-61, 65, 66, 70, 103-7, 108, 109, 110, 113-115, 117, 123, 124, 125, 127, 132, 134, 137,
138, 146, 170, and 184-186.
Infrastructure
The PCDC intends to encourage infrastructure improvements, such as upgrading the Trestle and
improving the railroad tracks to be a part of a regional transit system, as shown in photos 18, 53-55, 82,
173, and 189.
3. Industrial Lands
The PCDC recognizes that industrial uses within the PCD provide important services for the community
and wishes to encourage these industrial uses, such as those depicted in photos 1, 16, 17, 19, 21, 24, 29-
30, 32, 86, 87, 90, 91, 100, 117, 127, 143, 139, 149, and 184, to stay within the City's urban growth
boundary.
4. Approved/Completed Enhancements
Since the photographs were taken in 2005, the PCDC has encouraged the reuse and/or upgrade of
properties and improvements to public infrastructure, such as roadways and drainage improvements. The
conditions shown in photos 11, 12, 15, 19, 20, 25, 38, 42, 69, 82, 85, 98, 101, 103-105, 107, 132, 157, and
159 have been improved, and do not necessarily reflect blighting conditions as of the date of this
Supplemental Report.
E. Redevelopment Activities
Chapter III of the Report to Council includes a broad list of potential redevelopment projects and
activities, based on existing redevelopment plans. Subsequent to the preparation and submittal of the
Report to Council, a number of activities were recommended in addition to what was described in the
Report to Council. These recommendations will be considered as part of the PCDC's 2007 Five Year
Implementation Plan and the FY 2007/08 Budget:
❑ Implement methods to improve circulation and reduce traffic congestion.
❑ Encourage the development of commercial uses not impacting existing businesses.
❑ Ensure the bicycle plan is implemented at the time of, or prior to, redevelopment.
❑ Expand public access to and awareness of the river through a variety of different modes.
❑ Encourage the use of local resources such as the local labor force and services, and adhere to
prevailing wage provisions.
❑ Consider dredging activities to preserve the economic viability of property as an additional
component to the River Access and Enhancement Plan.
❑ Upgrade and preserve older buildings to enhance the unique character of Petaluma.
❑ Incorporate cobblestones in curb upgrades to enhance Petaluma's unique historical character.
❑ Provide agricultural infrastructure.
Supplemental Report to Council on the Plan Amendments and Fiscal Merger
l8
❑ Implement and support projects that encourage the improvement, rehabilitation and upgrading of
existing buildings to enhance the character of the community.
Supplemental Report to Council on the Plan Amendments and Fiscal Merger
/9
RESOLUTION NO. 2006-1
PETALUMA CITY PLANNING COMMISSION
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PETALUMA
FINDING THAT THE PROPOSED AMENDMENTS TO THE CITY'S
REDEVELOPMENT PLANS TO EFFECTUATE A FISCAL MERGER OF THE CITY'S
REDEVELOPMENT PROJECT AREAS
CONFORM TO THE GENERAL PLAN OF THE CITY
WHEREAS, the Petaluma Commnunity Development Commission ("PCDC") has
prepared and submitted to the Planning Commission of the City of Petaluma ("Planning
Commission") proposed amendments (the "Amendments") to the Redevelopment Plans for the
Petaluma Central Business District Redevelopment Project Area ("CBD Project Area") and the
Community Development Project (the "PCD Project Area") which Amendments would fiscally
merge the two project areas; and
WHEREAS, pursuant to Health and Safety Code Section 33344.5, PCDC staff and
consultants have prepared a Preliminary Report which describes and analyzes existing conditions
in the CBD Project Area and the PCD Project Area, the financial resources and projected
revenue available to carry out redevelopment activities in the project areas, and the proposed
Amendments; and
WHEREAS, in accordance with Health and Safety Code Section 33346 the Planning
Commission is required to review such Amendments and make its report and recommendations
thereon to PCDC and the City Council of the City of Petaluma ("City Council"), including a
determination as to whether the Amendments conform 'to the General Plan of the City of
Petaluma ("General Plan"); and
WHEREAS, the above required report and recommendations, including matters referred
to in Section 33346 of the Health and Safety Code, are to be made to the PCDC and the City
Council for their consideration in acting on the adoption of the proposed Amendments; and
WHEREAS, on April 17, 2006, the PCDC approved the proposed Amendments and the
Preliminary Report and authorized their transmittal to affected taxing entities, the Planning
Commission, and interested parties; and
WHEREAS, the Planning Commission has considered the proposed Amendments, the
General Plan, and other pertinent reports and documents; and
WHEREAS, the proposed Amendments propose no changes to land use designations or
properties within the existing project areas; and
939425-I 1
C�20
WHEREAS, the proposed Amendments do not propose new projects, will not alter the
implementation of the Redevelopment Plans, do not propose any land use changes to those
already analyzed in the current General Plan, and do not modify the existing Redevelopment
Programs.
NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF
PETALUMA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Based on the foregoing facts, the Planning Commission reviewed the
proposed Amendments, and the Planning Commission hereby finds and determines in
accordance with Section 33346 of the Community Redevelopment Law, that the proposed
Amendments are consistent with the General Plan.
Section 2. The Planning Commission hereby recommends the approval and adoption of
the Amendments. In the event that prior to its adoption of the Amendments, the City Council
desires to make any minor, technical, or clarifying changes to the Amendments, the Planning
Commission hereby finds and determines that any such minor, technical, or clarifying changes
need not be referred to it for further report and recommendation, and hereby waives its report
and recommendation under Section 33347 of the Community Redevelopment Law concerning
any such change.
Section 3. The Planning Commission hereby authorizes and directs the Secretary of the
Planning Commission to transmit a copy of this Resolution to the PCDC and the City Council for
consideration as part of the PCDC's Report to the City Council pursuant to Section 33352 of the
Community Redevelopment Law, and this Resolution shall be deemed the report and
recommendations of the Planning Commission concerning the proposed Amendments and
contemplated public projects and activities thereunder, as required by applicable provisions of
law.
PASSED and ADOPTED this 27th day of June, 2006 by the following vote:
AYES:
NOES:
/iT.`Til1_ u
CITY OF PETALUMA PLANNING COMMISSION
V M
aStovkon Raesfeld
to the Planning Commission Planning Commission Chair
839425-I
a/
Introduced by
ORDINANCE NO. N.C.S.
Seconded by
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
PETALUMA APPROVING AND ADOPTING AN AMENDMENT
TO THE REDEVELOPMENT PLAN FOR THE CENTRAL
BUSINESS DISTRICT PROJECT AREA TO FISCALLY MERGE
THE CENTRAL BUSINESS DISTRICT PROJECT AREA WITH
THE PETALUMA COMMUNITY DEVELOPMENT PROJECT
AREA
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
WHEREAS, the City Council of the City of Petaluma ("City Council') approved
and adopted a Redevelopment Plan for the Central Business District Project Area (the
"Project Area") by Ordinance 1221 N.C.S. on September 27, 1976 (as 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, the"Redevelopment Plan");
WHEREAS, the City Council has received from the Petaluma Community
Development Commission (the "PCDC") a proposed amendment to the Redevelopment
Plan (the "Amendment'), a copy of which is attached to this Ordinance as Exhibit A;
WHEREAS, the Amendment provides for the fiscal merger of the Project Area
with the Petaluma Community Development Project Area in order to pool tax increment
revenue from the two project areas and establish a unified bonded indebtedness limit for
the two project areas while retaining the separate identity of each project area for other
purposes;
WHEREAS, the Amendment increases the outstanding bonded indebtedness limit
for the two project areas to the sum of $250,000,000 but does not alter the limitation on
the amount of tax increment revenue that may be allocated to PCDC over the life of the
Redevelopment Plan;
WHEREAS, the Amendment does not change the boundaries of the Project Area;
WHEREAS, adoption of the Amendment is necessary to provide the PCDC, the
City and the Petaluma community with additional financial and legal resources that will
841541-1 1 c2;L
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;
WHEREAS, as set forth in City Council Resolution _ and PCDC Resolution
each adopted on April 17, 2006, the City Council and the PCDC have each
determined that establishment of a Project Area Committee is not required because the
Amendment does not authorize use of eminent domain for property on which persons
reside and does not provide for the development of public projects that will cause
displacement of a substantial number of low- and moderate -income households;
WHEREAS, as set forth in City Council Resolution _ and PCDC Resolution
each adopted on 2006, the City Council and the PCDC have each
determined that the Amendment is exempt from CEQA review pursuant to CEQA
Guidelines Section 15061(b)(3) because (i) the fiscal merger is a financing mechanism
for unspecified future projects and will itself have no significant effect on the
environment, (ii) the potential environmental effects of the Redevelopment Plan were
analyzed in previously certified environmental impact reports, and (iii) the Amendment
does not propose new projects, will not alter the implementation of the Redevelopment
Plan, does not propose any land use changes to those already analyzed in the current
General Plan, and does not modify the existing redevelopment program;
WHEREAS, the City Planning Commission (the "Planning Commission") has
reviewed the Amendment, has found that the Amendment conforms to the City's General
Plan and has recommended the approval and adoption of the Amendment;
WHEREAS, the City Council and the PCDC conducted a joint public hearing on
July 17, 2006, concerning adoption of the Amendment;
WHEREAS, notice of the public hearing was published in a newspaper of
general circulation in Sonoma County once per week for four weeks prior to the date of
the hearing, and a copy of such notice and affidavit of publication are on file with the City
Clerk and Secretary of the PCDC;
WHEREAS, notice of the public hearing together with a statement concerning
property acquisition was sent by first class mail to the last known address of each assessee
of each parcel of land in the Project Area, as shown on the last equalized assessment roll
for the County of Sonoma;
WHEREAS, notice of the public hearing was sent by first class mail to all
residents and businesses within the Project Area;
WHEREAS, notice of the public hearing was sent by certified mail, return receipt
requested to the governing body of each taxing agency that receives taxes from property
in the Project Area;
WHEREAS, the PCDC has prepared a Report to Council in compliance with the
requirements of Community Redevelopment Law (Health & Safety Code Section 33000 et
841541-1 2 23
seq.) and a Supplement to such Report, which Report and Supplement are on file with the
City Clerk and the PCDC Secretary, and are hereby incorporated herein by reference;
WHEREAS, the City Council has evaluated the PCDC's Report to Council, the
Supplement, and the report and recommendations of the Planning Commission, has
provided an opportunity for all persons to be heard, and has received and considered all
evidence and testimony for and against the adoption of the Amendment, and the City
Council has, by Resolution No. , adopted written findings ("Findings") in
response to each written objection received from an affected property owner or taxing
entity; [IF THERE ARE NO WRITTEN OBJECTIONS, RESPONSIVE FINDINGS
ARE NOT NECESSARY] and
WHEREAS, the PCDC and the City Council have complied with all requirements
of Community Redevelopment Law in connection with the consideration and adoption of
the Amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Purpose and Intent. The purpose and intent of the City Council
with respect to the Amendment are: (i) to fiscally merge the Project Area with the
Petaluma Community Development Project Area in order to pool tax increment revenue
from the two project areas and establish a unified bonded indebtedness limit for the two
project areas while retaining the separate identity of each project area for other purposes,
and (ii) to accomplish to the greatest extent possible (a) the elimination of blight in the
Project Area, and (b) the completion of the redevelopment program in the Project Area
through the development of public improvements, the revitalization of commercial and
industrial properties, the provision of financial and other assistance to property owners
for redevelopment of their property, the development, preservation, acquisition and
rehabilitation of affordable housing, the expansion of employment opportunities, and the
promotion of private sector investment in the Project Area.
Section 2. Findings and Determinations. In accordance with Health and
Safety Code Sections 33354.6(a), 33367 and 33457.1, and based upon the evidence
contained in the Report to Council, the Findings and other documents prepared in
connection with the Amendment adoption process, and the evidence presented at the
public hearing, the City Council hereby finds and determines that:
a. The Project Area continues to be characterized by blighting conditions as
documented Chapter II of the Report to Council prepared for the
Amendment and in the Report to Council prepared in connection with the
original adoption of the Redevelopment Plan.
b. The blighted conditions in the Project Area are so prevalent and so
substantial that they cause a reduction of or lack of proper utilization of the
area to such an extent that they constitute a serious physical and economic
burden on the community which cannot reasonably be expected to be
841541-1 3 �q
reversed or alleviated by private enterprise or governmental action, or both,
without redevelopment. This finding is based in part on the facts that
governmental action available to the City without redevelopment would
be insufficient to cause any significant correction of the blighting
conditions, and that the nature and cost of the improvements necessary to
eradicate such blight are beyond the capacity of the City and private
enterprise acting alone or in concert without redevelopment.
C. The Amendment will facilitate the redevelopment of the Project Area in
conformity with the Community Redevelopment Law and in the interests
of the public peace, health, safety and welfare. This finding is supported
by the fact that redevelopment of the Project Area as contemplated by the
Redevelopment Plan as amended by the Amendment will implement the
objectives of the Community Redevelopment Law by aiding in the
elimination and correction of the conditions of blight in the Project Area;
providing for planning, development, redesign, clearance, reconstruction
or rehabilitation of properties which need improvement; providing
affordable housing, including housing for low- and moderate -income
persons; providing additional employment opportunities; facilitating
private investment; and providing for more beneficial use of under-utilized
land.
d. The adoption and carrying out of the Amendment is economically sound
and feasible. This finding is based in part on the fact that under the
Redevelopment Plan, as proposed to be amended, the PCDC will be
authorized to seek and utilize a variety of potential financing resources,
including tax increments and that no public redevelopment activity will be
undertaken unless the PCDC can demonstrate that it has adequate revenue
to finance the activity. The Report to Council further documents the
economic feasibility of the Amendment and related undertakings.
e. The Amendment is consistent with the General Plan of the City including,
without limitation the Housing Element of the General Plan, which
substantially complies with the requirements of Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division I of Title 7 of the
Government Code. This finding is based upon the report of the Planning
Commission that the Amendment conforms to the General Plan of the City
of Petaluma.
f. The carrying out of the Amendment will promote the public peace, health,
safety and welfare of the City and will effectuate the purposes and policies
of the Community Redevelopment Law. This finding is based on the fact
that redevelopment as contemplated by the Redevelopment Plan, as
amended by the Amendment, will benefit the Project Area by correcting
conditions of blight and by coordinating public and private actions to
stimulate development, contribute toward needed public improvements
841541-1 4 ��
and improve the social, economic, and physical conditions of the Project
Area.
g. The PCDC has a feasible method and plan for the relocation of families
and persons who may be temporarily or permanently displaced from
housing facilities in the Project Area. This finding is based upon the fact
that the City Council and the PCDC recognize that the provisions of
Government Code Section 7260 et seq. would apply in the event of
relocation resulting from the PCDC's implementation of the
Redevelopment Plan as amended by the Amendment. The City Council
finds and determines that the provision of relocation assistance according
to the PCDC's adopted Relocation Guidelines and applicable law
constitutes a feasible relocation method according to the PCDC's
relocation policies adopted in conjunction with the Redevelopment Plan.
h. There are, or will be provided within the Project Area or in other areas not
generally less desirable with regard to public utilities and public and
commercial facilities and at rents or prices within the financial means of
the families and persons who may be displaced from the Project Area,
decent, safe, and sanitary dwellings equal in number to the number of and
available to such displaced families and persons and reasonably accessible
to their places of employment. This finding is based in part on the fact that
no person or family will be required by the PCDC to move from any
dwelling unit in the Project Area until suitable replacement housing is
available according to law.
Families and persons shall not be displaced prior to adoption of a
relocation plan pursuant to Health and Safety Code Section 33411 and
33411.1. Dwelling units housing persons and families of low or moderate
income shall not be removed or destroyed prior to the adoption of a
replacement housing plan pursuant to Health and Safety Code Sections
33334.5, 33413 and 33413.5. This finding is based in part on the fact that
the PCDC shall displace no families or persons nor remove or destroy
dwelling units housing persons and families of low or moderate incomes
unless and until relocation assistance as required by law is provided.
j. The elimination of blight and the redevelopment of the Project Area could
not be reasonably expected to be accomplished by private enterprise acting
alone without the aid and assistance of the PCDC. This finding is based
upon the existence of blighting influences, including the lack of adequate
public improvements and facilities, structural deficiencies, dilapidation
and deterioration, factors that hinder economically viable use, and the
inability of individual developers to economically remove these blighting
influences without public assistance to acquire and assemble sites for
development as detailed in the record including the Report to Council.
The lack of private investment incentive, and the cost of requiring
individuals (through assessments or otherwise) to eradicate or significantly
841541-1 5 a�
alleviate such blighting conditions, and the inadequacy of other
governmental programs and financing mechanisms to eradicate or
significantly eliminate such blighting conditions, make elimination of
blight in the Project Area infeasible without the aid and assistance of the
PCDC under the Amendment and the Community Redevelopment Act.
k. The time limitations and the limitation on taxes that may be allocated to
the PCDC as set forth in the Redevelopment Plan as amended by the
Amendment are reasonably related to the proposed projects to be
implemented in the Project Area and to the ability of the PCDC to
eliminate blight within the Project Area. This finding is supported by the
fact that redevelopment depends in large part, upon private market forces
beyond the control of the PCDC, and shorter limitations would impair the
PCDC's ability to be flexible and respond to market conditions as and
when appropriate and would impair the PCDC's ability to maintain
development standards and controls over a period of time sufficient to
assure area revitalization. In addition, shorter time limitations would limit
the revenue sources and financing capacity necessary to carry out proposed
projects in the Project Area.
I. The fiscal merger of the 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.
Section 3. The City Council is satisfied that if any occupants of the Project
Area are displaced, permanent housing facilities will be available within three years from
the time of such displacement, and that pending the development of such facilities, there
will be available to any such displaced occupants adequate temporary housing facilities
at rents comparable to those in the community at the time of their displacement.
Section 4. The City Council is satisfied that all written objections received
before or at the noticed public hearing have been responded to in writing In addition,
written findings have been adopted in response to each written objection of an affected
property owner or taxing entity which has been filed with the City Clerk either before or
at the noticed public hearing. Following consideration by the City Council, all written
and oral objections to the Amendment are hereby overruled. The reasons for overruling
all written objections are more fully set forth in the Findings.
Section 5. The Redevelopment Plan as originally adopted and previously
amended is hereby further amended as set forth in the proposed Amendment attached
hereto as Exhibit A and as so amended is hereby designated as the official redevelopment
plan for the Project Area.
841541-1 6 / 7
Section 6. In order to implement and facilitate the effectuation of the
Amendment hereby approved, it may be necessary for the City Council to take certain
actions, and accordingly, this City Council hereby: (a) pledges its cooperation in helping
to carry out the Redevelopment Plan as amended; (b) requests the various officials,
departments, boards and agencies of the City having administrative responsibilities in the
Project Area likewise to cooperate to such end and to exercise their respective functions
and powers in a manner consistent with the redevelopment of the Project Area in
accordance with the Redevelopment Plan as amended; (c) stands ready to consider and
take appropriate action upon proposals and measures designed to effectuate the
Redevelopment Plan as amended; (d) declares its intention to undertake and complete
any proceedings necessary to be carried out by the City under the provisions of the
Redevelopment Plan as amended; and (e) may elect to provide, but is not committed to
provide, financial assistance in support of implementation of the Redevelopment Plan as
amended.
Section 7. In accordance with Health and Safety Code Section 33372, the
City Clerk is hereby directed to send a certified copy of this Ordinance to the PCDC,
whereupon the PCDC is vested with the responsibility for carrying out the
Redevelopment Plan as amended by the Amendment.
Section 8. The City Clerk is hereby directed to transmit a certified copy of
this Ordinance to the governing body of each of the taxing agencies which levies taxes
upon any property in the Project Area.
Section 9. If any part of this Ordinance or the Amendment is held to be
invalid for any reason, such decision shall not affect the validity of the remaining parts of
this Ordinance or of the Amendment, and the City Council hereby declares it would have
passed the remainder of this Ordinance or approved the remainder of the Amendment
without such invalid part.
Section 10. Pursuant to the provisions of Government Code Section 36933,
within fifteen (15) days after its passage, the City Clerk shall publish this Ordinance, at
least once in a newspaper of general circulation printed and published in the county and
circulated in the City, with the names of those City Council members voting for and
against the ordinance. This Ordinance shall become effective thirty (30) days from and
after its adoption.
841541-1 7 0?3
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 LY.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.
816650-1
c2q
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,
816650-1
30
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.
816650-1
e
131
Introduced by
ORDINANCE NO. N.C.S.
Seconded by
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
PETALUMA APPROVING AND ADOPTING AN AMENDMENT
TO THE REDEVELOPMENT PLAN FOR THE PETALUMA
COMMUNITY DEVELOPMENT PROJECT AREA TO FISCALLY
MERGE THE PETALUMA COMMUNITY DEVELOPMENT
PROJECT AREA WITH THE CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT AREA
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
WHEREAS, the City Council of the City of Petaluma ("City Council') approved
and adopted a Redevelopment Plan for the Petaluma Community Development Project
Area (the "Project Area") by Ordinance 1725 N.C.S. on July 18, 1988 (as 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, the
"Redevelopment Plan");
WHEREAS, the City Council has received from the Petaluma Community
Development Commission ("PCDC") a proposed amendment to the Redevelopment Plan
(the "Amendment'), a copy of which is attached to this Ordinance as Exhibit A;
WHEREAS, the Amendment provides for the fiscal merger of the Project Area
with the Petaluma Central Business District Project Area in order to pool tax increment
revenue from the two project areas and establish a unified bonded indebtedness limit for
the two project areas while retaining the separate identity of each project area for other
purposes;
WHEREAS, the Amendment increases the outstanding bonded indebtedness limit
for the two project areas to the sum of $250,000,000 but does not alter the limitation on
the amount of tax increment revenue that may be allocated to PCDC over the life of the
Redevelopment Plan;
WHEREAS, the Amendment does not change the boundaries of the Project Area;
WHEREAS, adoption of the Amendment is necessary to provide the PCDC, the
City and the Petaluma community with additional financial and legal resources that will
841545-2 1
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;
WHEREAS, as set forth in City Council Resolution and PCDC Resolution
each adopted on April 17, 2006, the City Council and the PCDC have each
determined that establishment of a Project Area Committee is not required because the
Amendment does not authorize use of eminent domain for property on which persons
reside and does not provide for the development of public projects that will cause
displacement of a substantial number of low- and moderate -income households;
WHEREAS, as set forth in City Council Resolution _ and PCDC Resolution
each adopted on , 2006, the City Council and the PCDC have each
determined that the Amendment is exempt from CEQA review pursuant to CEQA
Guidelines Section 15061(b)(3) because (i) the fiscal merger is a financing mechanism
for unspecified future projects and will itself have no significant effect on the
environment, (ii) the potential environmental effects of the Redevelopment Plan were
analyzed in previously certified environmental impact reports, and (iii) the Amendment
does not propose new projects, will not alter the implementation of the, Redevelopment
Plan, does not propose any land use changes to those already analyzed in the current
General Plan, and does not modify the existing redevelopment program.
WHEREAS, the City Planning Commission (the "Planning Commission") has
reviewed the Amendment, has found that the Amendment conforms to the City's General
Plan and has recommended the approval and adoption of the Amendment;
WHEREAS, the City Council and the PCDC conducted ajoint public hearing on
July 17, 2006, concerning adoption of the Amendment;
WHEREAS, notice of the public hearing was published in a newspaper of
general circulation in Sonoma County once per week for four weeks prior to the date of
the hearing, and a copy of such notice and affidavit of publication are on file with the City
Clerk and Secretary of the PCDC;
WHEREAS, notice of the public hearing together with a statement concerning
property acquisition was sent by first class mail to the last known address of each assessee
of each parcel of land in the Project Area, as shown on the last equalized assessment roll
for the County of Sonoma;
WHEREAS, notice of the public hearing was sent by first class mail to all
residents and businesses within the Project Area;
WHEREAS, notice of the public hearing was sent by certified mail, return receipt
requested to the governing body of each taxing agency that receives taxes from property
in the Project Area;
841545-2 2 33
WHEREAS, the PCDC has prepared a Report to Council in compliance with the
requirements of Community Redevelopment Law (Health & Safety Code Section 33000 et
seq.) and a Supplement to such Report, which Report and Supplement are on file with the
City Clerk and the PCDC Secretary, and are hereby incorporated herein by reference;
WHEREAS, the City Council has evaluated the PCDC's Report to Council, the
Supplement, and the report and recommendations of the Planning Commission, has
provided an opportunity for all persons to be heard, and has received and considered all
evidence and testimony for and against the adoption of the Amendment, and the City
Council has, by Resolution No. , adopted written findings ("Findings") in
response to each written objection received from an affected property owner or taxing
entity; [IF THERE ARE NO WRITTEN OBJECTIONS, RESPONSIVE FINDINGS
ARE NOT NECESSARY] and
WHEREAS, the PCDC and the City Council have complied with all requirements
of Community Redevelopment Law in connection with the consideration and adoption of
the Amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA,
CALIFORNIA, DOES,HEREBY ORDAIN AS FOLLOWS:
Section 1. Purpose and Intent. The purpose and intent of the City Council
with respect to the Amendment are: (i) to fiscally merge the Project Area with the
Petaluma Central Business District Project Area in order to pool tax increment revenue
from the two project areas and establish a unified bonded indebtedness limit for the two
project areas while retaining the separate identity of each project area for other purposes,
and (ii) to accomplish to the greatest extent possible (a) the elimination of blight in the
Project Area, and (b) the completion of the redevelopment program in the Project Area
through the development of public improvements, the revitalization of commercial and
industrial properties, the provision of financial and other assistance to property owners
for redevelopment of their property, the development, preservation, acquisition and
rehabilitation of affordable housing, the expansion of employment opportunities, and the
promotion of private sector investment in the Project Area.
Section 2. Findings and Determinations. In accordance with Health and
Safety Code Sections 33354.6(a), 33367 and 33457.1, and based upon the evidence
contained in the Report to Council, the Findings and other documents prepared in
connection with the Amendment adoption process, and the evidence presented at the
public hearing, the City Council hereby finds and determines that:
a. The Project Area continues to be characterized by blighting conditions as
documented Chapter II of the Report to Council prepared for the
Amendment and in the Report to Council prepared in connection with the
original adoption of the Redevelopment Plan.
b. The blighted conditions in the Project Area are so prevalent and so
substantial that they cause a reduction of or lack of proper utilization of the
B41545-2 3 34
area to such an extent that they constitute a serious physical and economic
burden on the community which cannot reasonably be expected to be
reversed or alleviated by private enterprise or governmental action, or both,
without redevelopment. This finding is based in part on the facts that
governmental action available to the City without redevelopment would
be insufficient to cause any significant correction of the blighting
conditions, and that the nature and cost of the improvements necessary to
eradicate such blight are beyond the capacity of the City and private
enterprise acting alone or in concert without redevelopment.
C. The Amendment will facilitate the redevelopment of the Project Area in
conformity with the Community Redevelopment Law and in the interests
of the public peace, health, safety and welfare. This finding is supported
by the fact that redevelopment of the Project Area as contemplated by the
Redevelopment Plan as amended by the Amendment will implement the
objectives of the Community Redevelopment Law by aiding in the
elimination and correction of the conditions of blight in the Project Area;
providing for planning, development, redesign, clearance, reconstruction
or rehabilitation of properties which need improvement; providing
affordable housing, including housing for low- and moderate -income
persons; providing additional employment opportunities; facilitating
private investment; and providing for more beneficial use of under-utilized
land.
d. The adoption and carrying out of the Amendment is economically sound
and feasible. This finding is based in part on the fact that under the
Redevelopment Plan, as proposed to be amended, the PCDC will be
authorized to seek and utilize a variety of potential financing resources,
including tax increments and that no public redevelopment activity will be
undertaken unless the PCDC can demonstrate that it has adequate revenue
to finance the activity. The Report to Council further documents the
economic feasibility of the Amendment and related undertakings.
e. The Amendment is consistent with the General Plan of the City including,
without limitation the Housing Element of the General Plan, which
substantially complies with the requirements of Article 10.6 (commencing
with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code. This finding is based upon the report of the Planning
Commission that the Amendment conforms to the General Plan of the City
of Petaluma.
f. The carrying out of the Amendment will promote the public peace, health,
safety and welfare of the City and will effectuate the purposes and policies
of the Community Redevelopment Law. This finding is based on the fact
that redevelopment as contemplated by the Redevelopment Plan, as
amended by the Amendment, will benefit the Project Area by correcting
conditions of blight and by coordinating public and private actions to
841545-2 4 36
stimulate development, contribute toward needed public improvements
and improve the social, economic, and physical conditions of the Project
Area.
g. The PCDC has a feasible method and plan for the relocation of families
and persons who may be temporarily or permanently displaced from
housing facilities in the Project Area. This finding is based upon the fact
that the City Council and the PCDC recognize that the provisions of
Government Code Section 7260 et seq. would apply in the event of
relocation resulting from the PCDC's implementation of the
Redevelopment Plan as amended by the Amendment. The City Council
fords and determines that the provision of relocation assistance according
to the PCDC's adopted Relocation Guidelines and applicable law
constitutes a feasible relocation method according to the PCDC's
relocation policies adopted in conjunction with the Redevelopment Plan.
h. There are, or will be provided within the Project Area or in other areas not
generally less desirable with regard to public utilities and public and
commercial facilities and at rents or prices within the financial means of
the families and persons who may be displaced from the Project Area,
decent, safe, and sanitary dwellings equal in number to the number of and
available to such displaced families and persons and reasonably accessible
to their places of employment. This finding is based in part on the fact that
no person or family will be required by the PCDC to move from any
dwelling unit in the Project Area until suitable replacement housing is
available according to law.
Families and persons shall not be displaced prior to adoption of a
relocation plan pursuant to Health and Safety Code Section 33411 and
33411.1. Dwelling units housing persons and families of low or moderate
income shall not be removed or destroyed prior to the adoption of a
replacement housing plan pursuant to Health and Safety Code Sections
33334.5, 33413 and 33413.5. This finding is based in part on the fact that
the PCDC shall displace no families or persons nor remove or destroy
dwelling units housing persons and families of low or moderate incomes
unless and until relocation assistance as required by law is provided.
j. The elimination of blight and the redevelopment of the Project Area could
not be reasonably expected to be accomplished by private enterprise acting
alone without the aid and assistance of the PCDC. This finding is based
upon the existence of blighting influences, including the lack of adequate
public improvements and facilities, structural deficiencies, dilapidation
and deterioration, factors that hinder economically viable use, and the
inability of individual developers to economically remove these blighting
influences without public assistance to acquire and assemble sites for
development as detailed in the record including the Report to Council.
The lack of private investment incentive, and the cost of requiring
841545-2 5 3
individuals (through assessments or otherwise) to eradicate or significantly
alleviate such blighting conditions, and the inadequacy of other
governmental programs and financing mechanisms to eradicate or
significantly eliminate such blighting conditions, make elimination of
blight in the Project Area infeasible without the aid and assistance of the
PCDC under the Amendment and the Community Redevelopment Act.
k. The time limitations and the limitation on taxes that may be allocated to
the PCDC as set forth in the Redevelopment Plan as amended by the
Amendment are reasonably related to the proposed projects to be
implemented in the Project Area and to the ability of the PCDC to
eliminate blight within the Project Area. This finding is supported by the
fact that redevelopment depends in large part, upon private market forces
beyond the control of the PCDC, and shorter limitations would impair the
PCDC's ability to be flexible and respond to market conditions as and
when appropriate, and would impair the PCDC's ability to maintain
development standards and controls over a period of time sufficient to
assure area revitalization. In addition, shorter time limitations would limit
the revenue sources and financing capacity necessary to carry out proposed
projects in the Project Area.
The fiscal merger of the Project Area and the Petaluma Central Business
District 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.
Section 3. The City Council is satisfied that if any occupants of the Project
Area are displaced, permanent housing facilities will be available within three years from
the time of such displacement, and that pending the development of such facilities, there
will be available to any such displaced occupants adequate temporary housing facilities
at rents comparable to those in the community at the time of their displacement.
Section 4. The City Council is satisfied that all written objections received
before or at the noticed public hearing have been responded to in writing In addition,
written findings have been adopted in response to each written objection of an affected
property owner or taxing entity which has been filed with the City Clerk either before or
at the noticed public hearing. Following consideration by the City Council, all written
and oral objections to the Amendment are hereby overruled. The reasons for overruling
all written objections are more fully set forth in the Findings.
Section 5. The Redevelopment Plan as originally adopted and previously
amended is hereby further amended as set forth in the proposed Amendment attached
841545-2 6 '
hereto as Exhibit A and as so amended is hereby designated as the official redevelopment
plan for the Project Area.
Section 6. In order to implement and facilitate the effectuation of the
Amendment hereby approved, it may be necessary for the City Council to take certain
actions, and accordingly, this City Council hereby: (a) pledges its cooperation in helping
to carry out the Redevelopment Plan as amended; (b) requests the various officials,
departments, boards and agencies of the City having administrative responsibilities in the
Project Area likewise to cooperate to such end and to exercise their respective functions
and powers in a manner consistent with the redevelopment of the Project Area in
accordance with the Redevelopment Plan as amended; (c) stands ready to consider and
take appropriate action upon proposals and measures designed to effectuate the
Redevelopment Plan as amended; (d) declares its intention to undertake and complete
any proceedings necessary to be carried out by the City under the provisions of the
Redevelopment Plan as amended; and (e) may elect to provide, but is not committed to
provide, financial assistance in support of implementation of the Redevelopment Plan as
amended.
Section 7. In accordance with Health and Safety Code Section 33372, the
City Clerk is hereby directed to send a certified copy of this Ordinance to the PCDC,
whereupon the PCDC is vested with the responsibility for carrying out the
Redevelopment Plan as amended by the Amendment.
Section 8. The City Clerk is hereby directed to transmit a certified copy of
this Ordinance to the governing body of each of the taxing agencies which levies taxes
upon any property in the Project Area.
Section 9. If any part of this Ordinance or the Amendment is held to be
invalid for any reason, such decision shall not affect the validity of the remaining parts of
this Ordinance or of the Amendment, and the City Council hereby declares it would have
passed the remainder of this Ordinance or approved the remainder of the Amendment
without such invalid part.
Section 10. Pursuant to the provisions of Government Code Section 36933,
within fifteen (15) days after its passage, the City Clerk shall publish this Ordinance, at
least once in a newspaper of general circulation printed and published in the county and
circulated in the City, with the names of those City Council members voting for and
against the ordinance. This Ordinance shall become effective thirty (30) days from and
after its adoption.
841545-2 7
38
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 18, 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 (this "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 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 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.
816616-1
3�
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,
816616-1
2
1O
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.
816616-1
qI
ORDINANCE NO. N.C.S.
Introduced by
Seconded by
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA
ELIMINATING THE TIME LIMIT ON THE ESTABLISHMENT OF
LOANS, ADVANCES, AND INDEBTEDNESS WITH RESPECT TO THE
REDEVELOPMENT PLANS FOR THE
CENTRAL BUSINESS DISTRICT PROJECT AREA AND THE
PETALUMA COMMUNITY DEVELOPMENT PROJECT AREA
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
WHEREAS, the City Council of the City of Petaluma (the "City Council'), originally
approved and adopted a redevelopment plan for the Central Business District Project Area (the
"CBD Project Area") on September 27, 1976 by Ordinance No. 1221 N.C.S., and subsequently
amended such plan by Ordinance No. 1973 N.C.S. adopted November 21, 1994, Ordinance No.
2092 N.C.S. adopted July 21, 1999, Ordinance No.2116 N.C.S. adopted June 18, 2001 and
Ordinance No. 2184 N.C.S. adopted June 7, 2004 (as so amended hereafter the "CBD
Redevelopment Plan");
WHEREAS, Ordinance No. 2116 N.C.S. adopted June 18, 2001, added territory (the
"Added Area") to the redevelopment project area originally established in 1976 (the "Original
CBD Project Area");
WHEREAS, the City Council originally approved and adopted a redevelopment plan for
the Community Development Project Area (the "PCD Project Area") on July 18, 1988 by
Ordinance No. 1725 N.C.S. and subsequently amended such redevelopment plan by Ordinance
No. 1972 N.C.S. adopted November 21, 1994, Ordinance No. 2100 N.C.S. adopted April 3,
2000, and Ordinance No. 2183 N.C.S. adopted June 7, 2004 (as so amended hereafter the "PCD
Redevelopment Plan");
WHEREAS, the Petaluma Community Development Commission (the "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.) and to implement the CBD Redevelopment Plan
and the PCD Redevelopment Plan;
1
I�
WHEREAS, the CBD Redevelopment Plan and the PCD Redevelopment Plan specify a
time limit for the establishment of loans, advances and indebtedness in the Original CBD Project
Area and the PCD Project Area, respectively;
WHEREAS, Health and Safety Code Section 33333.6(e)(2)(B) permits redevelopment
plans which were adopted on or before December 31, 1993 to be amended by ordinance to
eliminate the time limit on the establishment of loans, advances and indebtedness, and provides
that in adopting such an ordinance neither the legislative body nor the redevelopment agency is
required to follow the procedural requirements ordinarily required for the amendment of
redevelopment plans;
WHEREAS, when a redevelopment plan is amended to eliminate the time limit on
establishment of loans, advances and indebtedness pursuant to Section 33333.6(e)(2)(B),
commencing in the first fiscal year following the date that such time limit would otherwise have
expired, the redevelopment agency is required to pay to each affected taxing entity the statutory
pass -through payments set forth in Section 33607.5 (b), (c), (d) and (e) unless the agency and the
affected taxing entity had entered into a contractual pass -through agreement prior to January 1,
1994; and
WHEREAS, the City Council has determined, in consultation with the PCDC, that
eliminating the time limit for establishing loans, advances and indebtedness will assist in
accomplishing the goals and objectives of the CBD Redevelopment Plan and the PCD
Redevelopment Plan:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The time limit set forth in the CBD Redevelopment Plan for the
establishment of loans, advances and indebtedness for the Original CBD Project Area is hereby
eliminated pursuant to Section 33333.6(e)(2)(B) of the California Health & Safety Code.
Section 2. The time limit set forth in the PCD Redevelopment Plan for the
establishment of loans, advances and indebtedness is hereby eliminated pursuant to Section
33333.6(e)(2)(B) of the California Health & Safety Code.
Section 3. The CBD Redevelopment Plan and the PCD Redevelopment Plan are
otherwise continued in full force and effect except as amended by this Ordinance.
Section 4. The City Clerk is hereby directed to send a certified copy of this
Ordinance to the PCDC.
Section 5. If any section, subsection, sentence, clause or phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions of
this ordinance. The City Council of the City of Petaluma hereby declares that it would have
passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that
any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
816685-1 2 ) 3
Section 6. This ordinance shall become effective thirty (30) days after the date of its
adoption by the Petaluma City Council.
Section 7. The City Clerk is hereby directed to post this ordinance for the period and
in the manner required by the City Charter.
816685-1 3 U
1
ORDINANCE NO. N.C.S.
Introduced by Seconded by
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA EXTENDING
TIME LIMITS FOR THE ORIGINAL CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT AREA
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
WHEREAS, the City Council of the City of Petaluma (the "City Council"), originally
approved and adopted a redevelopment plan for the Central Business District Project Area (the
"CBD Project Area") on September 27, 1976, by Ordinance No. 1221 N.C.S., and subsequently
amended such plan by Ordinance No. 1973 N.C.S. adopted November 21, 1994, Ordinance No.
2092 N.C.S. adopted July 21, 1999, Ordinance No.2116 N.C.S. adopted June 18, 2001 and
Ordinance No. 2184 N.C.S. adopted June 7, 2004 (as so amended hereafter the
"Redevelopment Plan");
WHEREAS, Ordinance No. 2116 N.C.S. adopted June 18, 2001, added territory (the
"Added Area") to the redevelopment project area originally established in 1976 (the "Original
Project Area");
WHEREAS, the redevelopment Plan sets forth certain time limitations on the
effectiveness of the Redevelopment Plan and the Agency's ability to receive tax increment
revenue to repay Agency indebtedness incurred to carry out redevelopment activities within the
Original Project Area and the Added Area;
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.) and to implement the Redevelopment Plan;
WHEREAS, effective August, 2004, SB 1096 added Section 33681.12 to the Health and
Safety Code, pursuant to which the Agency is required to make payments during the 2004-05
and 2005-06 fiscal years for deposit in the Sonoma County Educational Revenue Augmentation
Fund;
WHEREAS, SB 1096 amended Section 33333.2 of the Health and Safety Code to
provide that when a redevelopment agency is required to make a payment pursuant to Section
33681.12 for a project area which is subject to a redevelopment plan whose effectiveness limit
expires more than ten (10) but less than twenty (20) years after the last day of the fiscal year in
which the agency is required to make a payment pursuant to Section 33681.12, the legislative
body may, by adoption of an ordinance, amend the redevelopment plan to extend the time limit
on the effectiveness of the plan and the time limit for repayment of agency indebtedness with tax
increment funds by one year for each of the years in which the Section 33681.12 payment is
required, provided that the legislative body determines that (i) the agency is in compliance with
the requirements relating to the set -aside and use of tax increment funds for low- and moderate -
income housing, (ii) the agency has adopted an implementation plan in accordance with Health
and Safety Code Section 33490, (iii) the agency is in compliance with the requirements set forth
in Health and Safety Code Section 33413 relating to inclusionary and replacement housing
production; (iv) the agency is not subject to sanctions for failure to expend, encumber or disburse
an excess low- and moderate -income housing fund surplus; (v) the funds used to make the
payments required by Section 33681.12 would otherwise have been used to pay the cost of
projects and activities necessary to carry out the redevelopment plan;
WHEREAS, SB 1096 further amends Section 33333.2 of the Health and Safety Code to
provide that in adopting an ordinance pursuant to the foregoing authority, neither the legislative
body nor the redevelopment agency is required to follow the procedural requirements ordinarily
required for the amendment of redevelopment plans; however, the ordinance must be adopted at
a public hearing, notice of which has been mailed to all affected taxing entities not less than 30
days prior to the hearing and published not less than ten days prior to the hearing;
WHEREAS, the effectiveness of the redevelopment plan for the Original Project Area
expires in 2017; and
WHEREAS, the City Council and PCDC have complied with all notice and hearing
requirements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The City Council hereby finds that: (i) PCDC is in compliance with the
requirements relating to the set -aside and use of tax increment funds for low- and moderate -
income housing, (ii) PCDC has adopted an implementation plan in accordance with Health and
Safety Code Section 33490, (iii) PCDC is in compliance with the requirements set forth in
Health and Safety Code Section 33413 relating to inclusionary and replacement housing
production; (iv) PCDC is not subject to sanctions for failure to expend, encumber or disburse an
excess low- and moderate -income housing fund surplus; (v) the funds used to make the payments
required by Section 33681.12 would otherwise have been used to pay the cost of projects and
activities necessary to carry out the Redevelopment Plan,
Section 2. The time limit on the effectiveness of the Redevelopment Plan shall be
extended by two years to September 27, 2019 for the Original Project Area.
Section 3. The time limit on the receipt of property taxes and repayment of
indebtedness pursuant to Health and Safety Code section 33670 shall be extended two years to
September 27, 2029 for the Original Project Area.
Section 4. Ordinance Nos. 1221, 1973, 2092, 2116 and 2184 are continued in full
force and effect except as amended by this Ordinance.
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Section 5. The City Clerk is hereby directed to send a certified copy of this
Ordinance to the Agency.
Section 6. If any section, subsection, sentence, clause or phrase or word of this
ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction, such decision shall not affect the validity of the remaining portions of
this ordinance. The City Council of the City of Petaluma hereby declares that it would have
passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that
any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
Section 7. This ordinance shall become effective thirty (30) days after the date of its
adoption by the Petaluma City Council.
Section 8. The City Clerk is hereby directed to post this ordinance for the period and in
the manner required by the City Charter.
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