HomeMy WebLinkAboutOrdinance 2252 N.C.S. 09/18/20061
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EFFECTIVE DATE
OF ORDINANCE
October 18, 2006
Introduced by
David Glass
ORDINANCE NO. 2252 N.C.S.
Seconded by
Mike O'Brien
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"); and,
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; and,
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; and,
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,
and,
WHEREAS, the Amendment does not change the boundaries of the Project Area; and,
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 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; and,
Ordinance No. 2252 N.C.S. Page 1
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WHEREAS, as set forth in City Council Resolution 2006-067 N.C.S. and PCDC Resolution
2006-08, 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; and,
WHEREAS, as set forth in City Council Resolution 2006-108 N.C.S. and PCDC Resolution
2006-1 1, each adopted on June 5, 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; and,
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; and,
WHEREAS, the City Council and the PCDC conducted a joint public hearing on July 17,
2006, concerning adoption of the Amendment; and,
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; and,
WHEREAS, notice of the public hearing was sent by first class mail to all residents and
businesses within the Project Area; and,
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; and,
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; and,
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. 2006-161
Ordinance No. 2252 N.C.S. Page 2
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N.C.S., adopted written findings ("Findings") in response to each written objection received from
an affected property owner or taxing entity; 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 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,
Ordinance No. 2252 N.C.S. Page 3
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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.
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 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.
Ordinance No. 2252 N.C.S. Page 4
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Families and persons shall not be displaced prior to adoption of a relocation plan
pursuant to Health and Safety Code Section 33411 and 3341 1.1. 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.
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 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 "CDC'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.
Ordinance No. 2252 N.C.S.
Page 5
1 Section 4. The City Council is satisfied that all written objections received before or at
2 the noticed public hearing have been responded to in writing In addition, written findings have
3 been adopted in response to each written objection of an affected property owner or taxing
4 entity which has been filed with the City Clerk either before or at the noticed public hearing.
5 Following consideration by the City Council, all written and oral objections to the Amendment
6 are hereby overruled. The reasons for overruling all written objections are more fully set forth in
7 the Findings.
8
9 Section 5. The Redevelopment Plan as originally adopted and previously amended
10 is hereby further amended as set forth in the proposed Amendment attached hereto as Exhibit
11 A and as so amended is hereby designated as the official redevelopment plan for the Project
12 Area.
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14 Section 6. In order to implement and facilitate the effectuation of the Amendment
15 hereby approved, it may be necessary for the City Council to take certain actions, and
16 accordingly, this City Council hereby: (a) pledges its cooperation in helping to carry out the
17 Redevelopment Plan as amended; (b) requests the various officials, departments, boards and
18 agencies of the City having administrative responsibilities in the Project Area likewise to
19 cooperate to such end and to exercise their respective functions and powers in a manner
20 consistent with the redevelopment of the Project Area in accordance with the Redevelopment
21 Plan as amended; (c) stands ready to consider and take appropriate action upon proposals
22 and measures designed to effectuate the Redevelopment Plan as amended; (d) declares its
23 intention to undertake and complete any proceedings necessary to be carried out by the City
24 under the provisions of the Redevelopment Plan as amended; and (e) may elect to provide, but
25 is not committed to provide, financial assistance in support of implementation of the
26 Redevelopment Plan as amended.
27
28 Section 7. In accordance with Health and Safety Code Section 33372, the City Clerk
29 is hereby directed to send a certified copy of this Ordinance to the PCDC, whereupon the PCDC
30 is vested with the responsibility for carrying out the Redevelopment Plan as amended by the
31 Amendment.
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33 Section 8. The City Clerk is hereby directed to transmit a certified copy of this
34 Ordinance to the governing body of each of the taxing agencies which levies taxes upon any
35 property in the Project Area.
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37 Section 9. If any part of this Ordinance or the Amendment is held to be invalid for
38 any reason, such decision shall not affect the validity of the remaining parts of this Ordinance or
39 of the Amendment, and the City Council hereby declares it would have passed the remainder of
40 this Ordinance or approved the remainder of the Amendment without such invalid part.
41
42 Section 10. Pursuant to the provisions of Government Code Section 36933, within
43 fifteen (15) days after its passage, the City Clerk shall publish this Ordinance, at least once in a
44 newspaper of general circulation printed and published in the county and circulated in the City,
45 with the names of those City Council members voting for and against the ordinance. This
46 Ordinance shall become effective thirty (30) days from and after its adoption.
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48 INTRODUCED and ordered posted/wed this 1 1 th day of September, 2006.
49
50 ADOPTED this 18th day of September, 2006 by the following vote:
51
Ordinance No. 2252 N.C.S. Page 6
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AYES:
Mayor Glass, Harris, Vice Mayor Nau, O'Brien, Torliatt
NOES:
None
ABSENT:
None
ABSTAIN:
Healy
David Glass, Mayor
ATTEST: APPROVED AS TO FORM:
&0jiLib
Claire Cooper, City Clerk
Ql\�
Eric W. Danly, City orney
Ordinance No. 2252 N.C.S.
Page 7
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EXHIBIT A
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.
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
Ordinance No. 2252 N.C.S.
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areas for the purpose of paying the principal of, and interest on, indebtedness
incurred by the Agency to finance or refinance, in whole or in part, the
redevelopment project in any of the constituent project areas; except that any
such taxes attributable to a particular constituent project area shall first be used
to pay indebtedness in compliance with the terms of any bond resolution or
other agreement pledging such taxes from that particular constituent project
area which resolution or other agreement was adopted or approved by the
Agency prior to the fiscal merger of the constituent project areas. Except as
otherwise noted in this Section, tax increment revenue attributable to each
constituent project area may be used for any lawful purpose in any of the
constituent project areas.
3. Outstanding Bonded Indebtedness Limit. Notwithstanding anything to the
contrary set forth in Section VI.E.3 of the Plan, in accordance with Health and
Safety Code Section 33334.1, the amount of bonded indebtedness to be repaid
in whole or in part from the combined allocation of taxes to the Agency
pursuant to Health and Safety Code Section 33670 from all of the constituent
project areas which in the aggregate can be outstanding at any one time shall
not exceed $250,000,000 in principal amount, except by amendment of this Plan
and the redevelopment plan for the other constituent project areas.
4. Limitation on Allocation of Tax Increment. Notwithstanding anything to the
contrary set forth in Section VI.E.1 of the Plan, the taxes attributable to the
constituent project areas that may be and are so allocated to the Agency
pursuant to Health and Safety Code Section 33670(b) after the effective date of
this Amendment shall not exceed a cumulative total equal to the sum of the
individual limits on the allocation of taxes to the Agency as set forth in the
redevelopment plans for each constituent project area, except by amendment
of this Plan and the redevelopment plans for the other constituent project areas.
SECTION 3. EFFECT OF AMENDMENT
All provisions of the Plan not specifically amended or repealed in this Amendment shall continue
in full force and effect.
SECTION 4. SEVERABILITY
If any provision of this Amendment or the application thereof to any person or circumstance is
held invalid, the remainder of this Amendment, including the application of such part or
provision to other persons or circumstances shall not be affected thereby and shall continue in
full force and effect. To this end, provisions of this Amendment are severable. The City Council
of the City of Petaluma hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one
or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held
unconstitutional, invalid, or unenforceable.
SECTION 5. PUBLICATION AND EFFECTIVE DATE
The ordinance adopting this Amendment shall be published once, with the names of those City
Councilmembers voting for or against it, in the Argus-Courier, 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.
Ordinance No. 2252 N.C.S. Page 9