HomeMy WebLinkAboutOrdinance 2251 N.C.S. 09/18/2006 EFFECTIVE DATE ORDINANCE NO. 2251 N.C.S.
OF ®&DINANCE
October 18, 2006
1 Introduced by Seconded by
2
3
4 David Glass Mike O'Brien
5
6
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8 APPROVING AND ADOPTING AN AMENDMENT
9 TO THE REDEVELOPMENT PLAN FOR THE
10 CENTRAL BUSINESS DISTRICT PROJECT AREA
11 TO FISCALLY MERGE THE CENTRAL BUSINESS DISTRICT PROJECT AREA WITH
12 THE PETALUMA COMMUNITY DEVELOPMENT PROJECT AREA
13
14
15 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
16 WHEREAS, the City Council of the City of Petaluma ("City Council") approved and
17 adopted a Redevelopment Plan for the Central Business District Project Area (the "Project
18 Area") by Ordinance 1221 N.C.S. on September 27, 1976 (as subsequently amended by
19 Ordinance 1973 N.C.S. adopted November 21, 1994, Ordinance 2092 N.C.S. adopted July 21,
20 1999, Ordinance 21 16 N.C.S. adopted June 18, 2001, and Ordinance 2184 N.C.S. adopted June
21 7, 2004, the "Redevelopment Plan"); and,
22
23 WHEREAS, the City Council has received from the Petaluma Community Development
24 Commission (the "PCDC") a proposed amendment to the Redevelopment Plan (the
25 "Amendment"), a copy of which is attached to this Ordinance as Exhibit A; and,
26
27 WHEREAS, the Amendment provides for the fiscal merger of the Project Area with the
28 Petaluma Community Development Project Area in order to pool tax increment revenue from
29 the two project areas and establish a unified bonded indebtedness limit for the two project
30 areas while retaining the separate identity of each project area for other purposes; and,
31
32 WHEREAS, the Amendment increases the outstanding bonded indebtedness limit for the
33 two project areas to the sum of $250,000,000 but does not alter the limitation on the amount of
34 tax increment revenue that may be allocated to PCDC over the life of the Redevelopment Plan;
35 and,
36
37 WHEREAS, the Amendment does not change the boundaries of the Project Area; and,
38
39 WHEREAS, adoption of the Amendment is necessary to provide the PCDC, the City and
40 the Petaluma community with additional financial and legal resources that will result in
41 substantial benefit to the public and will contribute to the revitalization of blighted areas through
42 the increased economic vitality of such areas and through increased and improved housing
43 and economic opportunities in or near such areas; and,
44
Ordinance No. 2251 N.C.S. Page 1
1 WHEREAS, as set forth in City Council Resolution 2006-067 N.C.S. and PCDC Resolution
2 2006-08, each adopted on April 17, 2006, the City Council and the PCDC have each
3 determined that establishment of a Project Area Committee is not required because the
4 Amendment does not authorize use of eminent domain for property on which persons reside
5 and does not provide for the development of public projects that will cause displacement of a
6 substantial number of low- and moderate-income households; and,
7
8 WHEREAS, as set forth in City Council Resolution 2006-108 N.C.S. and PCDC Resolution
9 2006-1 1, each adopted on June 5, 2006, the City Council and the PCDC have each determined
10 that the Amendment is exempt from CEQA review pursuant to CEQA Guidelines Section
11 15061(6) (3) because (i) the fiscal merger is a financing mechanism for unspecified future
12 projects and will itself have no significant effect on the environment, (ii) the potential
13 environmental effects of the Redevelopment Plan were analyzed in previcusly certified
14 environmental impact reports, and (iii) the Amendment does not propose new projects, will not
15 alter the implementation of the Redevelopment Plan, does not propose any land use changes
16 to those already analyzed in the current General Plan, and does not modify the existing
17 redevelopment program; and,
18
19 WHEREAS, the City Planning Commission (the "Planning Commission") has reviewed the
20 Amendment, has found that the Amendment conforms to the City's General Plan and has
21 recommended the approval and adoption of the Amendment; and,
22
23 WHEREAS, the City Council and the PCDC conducted a joint public hearing on July 17,
24 2006, concerning adoption of the Amendment; and,
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26 WHEREAS, notice of the public hearing was published in a newspaper of general
27 circulation in Sonoma County once per week for four weeks prior to the date of the hearing, and
28 a copy of such notice and affidavit of publication are on file with the City Clerk and Secretary of
29 the PCDC; and,
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31 WHEREAS, notice of the public hearing together with a statement concerning property
32 acquisition was sent by first class mail to the last known address of each assessee of each parcel
33 of land in the Project Area, as shown on the last equalized assessment roll for the County of
34 Sonoma; and,
35
36 WHEREAS, notice of the public hearing was sent by first class mail to all residents and
37 businesses within the Project Area; and,
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39 WHEREAS, notice of the public hearing was sent by certified mail, return receipt requested
40 to the governing body of each taxing agency that receives taxes from property in the Project
41 Area; and,
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43 WHEREAS, the PCDC has prepared a Report to Council in compliance with the
44 requirements of Community Redevelopment Law (Health 8~ Safety Code Section 33000 et seq.)
45 and a Supplement to such Report, which Report and Supplement are on file with the City Clerk
46 and the PCDC Secretary, and are hereby incorporated herein by reference; and,
47
48 WHEREAS, the City Council has evaluated the PCDC's Report to Council, the Supplement,
49 and the report and recommendations of the Planning Commission, has provided an opportunity
50 for all persons to be heard, and has received and considered all evidence and testimony for and
51 against the adoption of the Amendment, and the City Council has, by Resolution No. 2006-161
Ordinance No. 2251 N.C.S. Page 2.
. 1 N.C.S., adopted written findings ~"Findings") in response to each written objection received from
2 an affected property owner or taxing entity; and,
3
4 WHEREAS, the PCDC and the City Council have complied with all requirements of
5 Community Redevelopment Law in connection with the consideration and adoption of the
6 Amendment.
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8 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA, CALIFORNIA, DOES
9 HEREBY ORDAIN AS FOLLOWS:
10
11 Section 1. Purpose and Intent. The purpose and intent of the City Council with
12 respect to the Amendment are: (i) to fiscally merge the Project Area with the Petaluma
13 Community Development Project Area in order to pool tax increment revenue from the two
14 project areas and establish a unified bonded indebtedness limit for the two project areas while
15 retaining the separate identity of each project area for other purposes, and (ii) to accomplish to
16 the greatest extent possible (a) the elimination of blight in the Project Area, and (b) the
17 completion of the redevelopment program in the Project Area through the development of
18 public improvements, the revitalization of commercial and industrial properties, the provision of
19 financial and other assistance to property owners for redevelopment of their property, the
20 development, preservation, acquisition and rehabilitation of affordable housing, the expansion
21 of employment opportunities, and the promotion of private sector investment in the Project
22 Area.
23
24 Section 2. Findings and Determinations. In accordance with Health and Safety
25 Code Sections 33354.6(a), 33367 and 33457.1, and based upon the evidence contained in the
26 Report to Council, the Findings and other documents prepared in connection with the
27 Amendment adoption process, and the evidence presented at the public hearing, the City
28 Council hereby finds and determines that:
29
30 a. The Project Area continues to be characterized by blighting conditions as
31 documented Chapter II of the Report to Council prepared for the Amendment
32 and in the Report to Council prepared in connection with the original adoption of
33 the Redevelopment Plan.
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35 b. The blighted conditions in the Project Area are so prevalent and so substantial
36 that they cause a reduction of or lack of proper utilization of the area to such an
37 extent that they constitute a serious physical and. economic burden on the
38 community which cannot reasonably be expected to be reversed or alleviated
39 by private enterprise or governmental action, or both, without redevelopment.
40 This finding is based in part on the facts that governmental action available to
41 the City without redevelopment would be insufficient to cause any significant
42 correction of the blighting conditions, and that the nature and cost of the
43 improvements necessary to eradicate such blight are beyond the capacity of
44 the City and private enterprise acting alone or in concert without
45 redevelopment.
46
47 c. The Amendment will facilitate the redevelopment of the Project Area in
48 conformity with the Community Redevelopment Law and in the interests of the
49 public peace, health, safety and welfare. This finding is supported by the fact
50 that redevelopment of the Project Area as contemplafed by the Redevelopment
51 Plan as amended by the Amendment will implement the objectives of the
52 Community Redevelopment Law by aiding in the elimination and correction of
Ordinance No. 2251 N.C.S. Page 3
1 the conditions of blight in the Project Area; providing for planning, development,
2 redesign, clearance, reconstruction or rehabilitation of properties which need
3 improvement; providing affordable housing, including housing for low- and
4 moderate-income persons; providing additional employment opportunities;
5 facilitating private investment; and providing for more beneficial use of under-
6 utilized land.
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8 d. The adoption and carrying out of the Amendment is economically sound and
9 feasible. This finding is based in part on the fact that under the Redevelopment
10 Plan, as proposed to be amended, the PCDC will be authorized to seek and
11 utilize a variety of potential financing resources, including tax increments and that
12 no public redevelopment activity will be undertaken unless the PCDC can
13 demonstrate that it has adequate revenue to finance the activity. The Report to
14 Council further documents the economic feasibility of the Amendment and
15 related undertakings.
16
17 e. The Amendment is consistent with the General Plan of the City including, without
18 limitation the Housing Element of the General Plan, which substantially complies
19 with the requirements of Article 10.6 (commencing with Section 65580) of Chapter
20 3 of Division 1 of Title 7 of the Government Code. This finding is based upon the
21 report of the Planning Commission that the Amendment conforms to the General
22 Plan of the City of Petaluma.
23
24 f. The carrying out of the Amendment will promote the public peace, health, safety
. 25 and welfare of the City and will effectuate the purposes and policies of the
26 Community Redevelopment Law. This finding is based on the fact that
27 redevelopment as contemplated by the Redevelopment Plan, as amended by
28 the Amendment, will benefit the Project Area by correcting conditions of blight
29 and by coordinating public and private actions to stimulate development,
30 contribute toward needed public improvements and improve the social,
31 economic, and physical conditions of the Project Area.
32
33 g. The PCDC has a feasible method and plan for the relocation ofi families and
34 persons who may be temporarily or permanently displaced from housing facilities
35 in the Project Area. This finding is based upon the fact that the City Council and
36 the PCDC recognize that the provisions of Government Code Section 7260 et seq.
37 would apply in the event of relocation resulting from the PCDC's implementation
38 of the Redevelopment Plan as amended by the Amendment. The City Council
39 finds and determines that the provision of relocation assistance according to the
40 PCDC's adopted Relocation Guidelines and applicable law constitutes a feasible
41 relocation method according to the PCDC's relocation policies adopted in
42 conjunction with the Redevelopment Plan.
43
44 h. There are, or will be provided within the Project Area or in other areas not
45 generally less desirable with regard to public utilities and public and commercial
46 facilities and at rents or prices within the financial means of the families and
47 persons who may be displaced from the Project Area, decent, safe, and sanitary
48 dwellings equal in number to the number of and available to such displaced
49 families and persons and reasonably accessible to their places of employment.
50 This finding is based in part on the fact that no person or farr,ily will be required by
51 the PCDC to move from any dwelling unit in the Project Area until suitable
52 replacement housing is available according to law.
Ordinance No. 2251 N.C.S. Page 4
1
2 i. Families and persons shall not be displaced. prior to adoption of a relocation plan
3 pursuant to Health and Safety Code Section 3341 1 and 3341 1.1. Dwelling units
4 housing persons and families of low or moderate income shall not be removed or
5 destroyed prior to the adoption of a replacement housing plan pursuant to
6 Health and Safety Code Sections 33334.5, 33413 and 33413.5. This finding is
7 based in part on the fact that the PCDC shall displace no families or persons nor
8 remove or destroy dwelling units housing persons and families of low or moderate
9 incomes unless and until relocation assistance as required by law is provided.
10
11 j. The elimination of blight and the redevelopment of the Project Area could not be
12 reasonably expected to be accomplished by private enterprise acting alone
13 without the aid and assistance of the PCDC. This finding is based upon the
14 existence of blighting influences, including the lack of adequate public
15 improvements and facilities, structural deficiencies, dilapidation and
16 deterioration, factors that hinder economically viable use, and the inability of
17 individual developers to economically remove these blighting influences without
18 public assistance to acquire and assemble sites for development as detailed in
19 the record including the Report to Council. The lack of private investment
20 incentive, and the cost of requiring individuals (through assessments or otherwise)
21 to eradicate or significantly alleviate such blighting conditions, and the
22 inadequacy of other governmental programs and financing mechanisms to
23 eradicate or significantly eliminate such blighting conditions, make elimination of
24 blight in the Project Area infeasible without the aid and assistance of the PCDC
. 25 under the Amendment and the Community Redevelopment Act.
26
27 k. The time limitations and the limitation on taxes that may be allocated to the
28 PCDC as set forth in the Redevelopment Plan as amended by the Amendment
29 are reasonably related to the proposed projects to be implemented in the
30 Project Area and to the ability of the PCDC to eliminate blight within the Project
31 Area. This finding is supported by the fact that redevelopment depends in large
32 part, upon private market forces beyond the control of the PCDC, and shorter
33 limitations would impair the PCDC's ability to be flexible and respond to market
34 conditions as and when appropriate and would impair the PCDC's ability to
35 maintain development standards and controls over a period of time sufficient to
36 assure area. revitalization. In addition, shorter time limitations would limit the
37 revenue sources and financing capacity necessary to carry out proposed projects
38 in the Project Area.
39
40 I. The fiscal merger of the Project Area and the Petaluma Community Development
41 Project Area for the purpose of pooling tax increment revenue is authorized by,
42 consistent with, and will serve the legislative policies of, Health and Safety Code
43 Section 33485 et seq., in that such fiscal merger will result in substantial benefit to
44 the public and will contribute to the revitalization of blighted areas through the
45 increased economic vitality of such areas and through increased and improved
46 housing and economic opportunities in or near such areas.
47
48 Section 3. The City Council is satisfied that if any occupants of the Project Area are
49 displaced, permanent housing facilities will be available within three years from the time of such
50 displacement, and that pending the development of such facilities, there will be available to
51 any such displaced occupants adequate temporary housing facilities at rents comparable to
52 those in the community at the time of their displacement.
Ordinance No. 2251 N.C.S. Page 5
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2 Section 4. The City Council is satisfied that all written objections received before or at
3 the noticed public hearing have been responded to in writing In addition, written findings have
4 been adopted in response to each written objection of an affected property owner or taxing
5 entity which has been filed with the City Clerk either before or at the noticed public hearing.
6 Following consideration by the City Council, all written and oral objections to the Amendment
7 are hereby overruled. The reasons for overruling all written objections are more fully set forth in
8 the Findings.
9
10 Section 5. The Redevelopment Plan as originally adopted and previously amended
11 is hereby further amended as set forth in the proposed Amendment attached hereto as Exhibit
12 A and as so amended is hereby designated as the official redevelopment plan for the Project
13 Area.
14
15 Section 6. In order to implement and facilitate the effectuation of the Amendment
16 hereby approved, it may be necessary for the City Council to take certain actions, and
17 accordingly, this City Council hereby: (a) pledges its cooperation in helping to carry out the
18 Redevelopment Plan as amended; (b) requests the various officials, departments, boards and
19 agencies of the City having administrative responsibilities in the Project Area likewise to
20 cooperate to such end and to exercise their respective functions and powers in a manner
21 consistent with the redevelopment of the Project Area in accordance with the Redevelopment
22 Plan as amended; (c) stands ready to consider and take appropriate action upon proposals
23 and measures designed to effectuate the Redevelopment Plan as amended; (d) declares its
24 intention to undertake and complete any proceedings necessary to be carried out by the City
25 under the provisions of the Redevelopment Plan as amended; and (e) may elect to provide, but
26 is not committed to provide, financial assistance in support of implementation of the
27 Redevelopment Plan as amended.
28
29 Section 7. In accordance with Health and Safety Code Section 33372, the City Clerk
30 is hereby directed to send a certified copy of this Ordinance to the PCDC, whereupon the PCDC
31 is vested with the responsibility for carrying out the Redevelopment Plan as amended by the
32 Amendment.
33
34 Section 8. The City Clerk is hereby directed to transmit a certified copy of this
35 Ordinance to the governing body of each of the taxing agencies which levies taxes upon any
36 property in the Project Area.
37
38 Section 9. If any part of this Ordinance or the Amendment is held to be invalid for
39 any reason, such decision shall not affect the validity of the remaining parts of this Ordinance or
40 of the Amendment, and the City Council hereby declares it would have passed the remainder of
41 this Ordinance or approved the remainder of the Amendment without such invalid part.
42
43 Section 10. Pursuant to the provisions of Government Code Section 36933, within
44 fifteen (15) days after its passage, the City Clerk shall publish this Ordinance, at least once in a
45 newspaper of general circulation printed and published in the county and circulated in the City,
46 with the names of those City Council members voting for and against the ordinance. This
47 Ordinance shall become effective thirty (30) days from and after its adoption.
48
49 INTRODUCED and ordered posted/wed this 11th day of September, 2006.
50
51 ADOPTED this 18th day of September, 2006 by the following vote:
Ordinance No. 2251 N.C.S. Page 6
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2 AYES: Mayor Glass, Harris, Vice Mayor Nau, O'Brien, Torliatt
3 NOES: None
4 ABSENT: None
5 ABSTAIN: Healy
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10 id Glass, Mayor
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13 ATTEST: APPROVED AS TO FORM:
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17 Claire Cooper, City Clerk Eric W. Danly, City A~#orney
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Ordinance No. 2251 N.C.S. Page 7
1 EXHIBIT A
2
3 PROPOSED AMENDMENT
4 TO THE REDEVELOPMENT PLAN FOR THE PETALUMA
5 CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AREA
6 TO FISCALLY MERGE PROJECT AREAS
7
8
9
10 SECTION 1. AMENDMENT OF REDEVELOPMENT PLAN.
11
12 The Redevelopment Plan for the Petaluma Central Business District Redevelopment Project Area,
13 adopted by Ordinance 122.1 N.C.S. on September 27, 1976, and subsequently amended by
14 Ordinance 1973 N.C.S. adopted November 21, 1994, Ordinance 2092 N.C.S. adopted July 21,
15 1999, Ordinance 21 16 N.C.S. adopted June 18, 2001, and Ordinance 2184 N.C.S. adopted June
16 7, 2004 (as so amended, the "CBD Plan" or the "Plan") is hereby amended as set forth in this
17 amendment (this "Amendment"), effective as of the effective date of the ordinance adopting
18 this Amendment.
19
20 SECTION 2. FISCAL MERGER
21
22 Section IX.F is hereby added to the CBD Plan to read as follows:
23
24
25 F. Fiscal Merger
26
27 1. Findings. The fiscal merger of the Petaluma Central Business District
28 Redevelopment Project Area ('`CBD Project Area") and the Petaluma
29 Community Development Project Area for the purpose of pooling tax increment
30 revenue is authorized by, consistent with, and will serve the legislative policies of,
31 Health and Safety Code Section 33485 et seq., in that such fiscal merger will
32 result in substantial benefit to the public and will contribute to the revitalization
33 of blighted areas through the increased economic vitality of such areas and
34 through increased and improved housing and economic opportunities in or
35 near such areas.
36
37 2. Fiscal Merger of Project Areas. Pursuant to, and for the purpose of pooling
38 tax increment revenue as described in Health and Safety Code Section 33485 et
39 seq., the CBD Project Area is hereby fiscally merged with the project area (the
40 "PCD Project Area") established and described in the Redevelopment Plan for
41 the Petaluma Community Development Project Area, adopted by the City
42 Council by Ordinance 1725 N.C.S. (as subsequently amended, the "PCD Plan").
43
44 The CBD Project Area and the PCD Project Area are each referred to herein as
45 a "constituent project area." Except as otherwise stated herein, each
46 reference in this Amendment to a constituent project area shall mean such
47 project area as originally established and as such project area may have been
48 amended to add territory.
49
50 This section authorizes the taxes attributable to each constituent project area
51 which are allocated to the Agency pursuant to Health and Safety Code Section
52 33670(6) to be allocated for redevelopment in any of the constituent project
Ordinance No. 2251 N.C.S. Page 8
1 areas for the purpose of paying the principal of, and interest on, indebtedness
2 incurred by the Agency to finance or refinance, in whole or in part, the
3 redevelopment project in any of the constituent project areas; except that any
4 such taxes attributable to a particular constituent project area shall first be used
5 to pay indebtedness in compliance with the terms of any bond resolution or
6 other agreement pledging such taxes from that particular constituent project
7 area which resolution or other agreement was adopted or approved by the
8 Agency prior to the fiscal merger of the constituent project areas. Except as
9 otherwise noted in this Section, tax increment revenue attributable to each
10 constituent project area may be used for any lawful purpose in any of the
11 constituent project areas.
12
13 3. Outstanding Bonded Indebtedness Limit. Notwithstanding anything to the
14 contrary set forth in Section XVI of the Plan, in accordance with Health and
15 Safety Code Section 33334.1, the amount of bonded indebtedness to be repaid
16 in whole or in part from the combined allocation of taxes to the Agency
17 pursuant to Health and Safety Code Section 33670 from all of the constituent
18 project areas which in the aggregate can be outstanding at any one time shall
19 not exceed $250,000,000 in principal amount, except by amendment of this Plan
20 and the redevelopment plan for the other constituent project areas.
21
22 4. Limitation on Allocation of Tax Increment. Notwithstanding anything to the
23 contrary set forth in Section IX.C.2 of the Plan, the taxes attributable to the
24 constituent project areas that may be and are so allocated to the Agency
25 pursuant to Health and Safety Code Section 33670(6) after the effective date of
26 this Amendment shall not exceed a cumulative total equal to the sum of the
27 individual limits on the allocation of taxes to the Agency as set forth in the
28 redevelopment plans for each constituent project area, except by amendment
29 of this Plan and the redevelopment plans for the other constituent project areas.
30
3.1' SECTION 3. EFFECT OF AMENDMENT
32
33 All provisions of the Plan not specifically amended or repealed in this Amendment shall continue
34 in full force and effect.
35
36 SECTION 4. SEVERABILITY
37
38 If any provision of this Amendment or the application thereof to any person or circumstance is
39 held invalid, the remainder of this Amendment, including the application of such part or
40 provision to other persons or circumstances shall not be affected thereby and shall continue in
41 full force and effect. To this end, provisions of this Amendment are severable. The City Council
42 of the City of Petaluma hereby declares that it would have passed each section, subsection,
43 subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one
44 or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held
45 unconstitutional, invalid, or unenforceable.
46
47 SECTION 5. PUBLICATION AND EFFECTIVE DATE
48
49 The ordinance adopting this Amendment shall be published once, with the names of those City
50 Councilmembers voting for or against it, in the Argus-Courier, a newspaper of general 'circulation
51 in the City of Petaluma, as required by law, and shall become effective thirty (30) days from and
52 after its adoption.
Ordinance No. 2251 N.C.S. Page 9