HomeMy WebLinkAboutStaff Report 09/12/2011 5.Bo °I
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DATE: :September 12, 2,011
TO: Honorable Mayor [and. Members of the City Council through City Manager
Honorable Chair,and Members of the Petaluma :Community Development
Commission (PCDC) through Executive Director..
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FROM: Bonne Gaeb � " 'ing Administrator,
ler,, Hous
"fPCD,C'Resolution Determimn :the Nec
' SUBJECT p d' . dm tati gslit of Ex ending Funds for
,r �I 'Ado tion o ' '01I , . e Y h
n N'; Planning an 'A inis on of FY 2011-2012; Low and Moderate°Income Housing
1.?L '' Projects
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" 2) Adoption„ of Joint City and PCDC Resolution,'A'dopt'ing Findings for Use of Low
and11V1odefate Ineoi `e H°ousiing Funds Outside the Merged ,Project Area
3) Adoption I of °PCDC Resolution Adopting Findings and Authorizing the
Expenditure of ;$:5.;310;0;00 in Tax Increment Funds in" the Merged Project Area
4) , Adoption ! of T",City Resolution Adopting Findings and Consenting to the
Expenditure of'$5,3'1.0,000 Jn Tax Increment Funds in the Merged Project Area,
RECOMMENDATION:
It is recommended that the PCDC, take the following actions:. ,Adopt Resolutions #I and 3 as
described above;
It is recommended that "the PCDC and City Council take the following joint action: Adopt
Resolution #2 as described above, and
It is recommended that the City Council take the follow'ing;action: Adopt Resolution #4 as
described above.
BACKGROUND:
Thel alifo' mm prnent Law and
C rmaCo unity Redevelo a Health Safety Code Section 33000 et. seq..
(CRL) requires t'at redevelopment ,agencies adopt the above,; resolutions. They require either
PCDC 'or joint Ciiy Council/PCDC action on awannuall.basis. A brief explanation of each
resol'ut'ion is'included. under"'Discussion"..
DISCUSSION: '
PCDC RESOLUTION #1— Section 33334.3(d) of the CRL requires an annual written
determination.stating;that:planning and administration expenses paid from the Housing'Fund are
necessary for the production., improvement, or preservation of low and moderate income housing.
Agenda Review:,
City Attorney Finance Dire tor; Onager
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JOINT RE�S.OLUTION #2,�— Section 33334.2(g) authori'zes'the'PCDC to use -,monies from the
Housing Tund outside a redevelopment project area only upon adoption ofr.'esolutions by PCDC
and the City. Council findinglthat sueh' use will be of benefit to the project area.
PCDC RESOLUTION #3'— Section, 334'45 of the CRL requires that certain findings be made prior
to a redevelopment agency's expenditure of `tax increment funds for public improvements. For
improvements located °'inside of contiguous'to the Project Area(s), thefindings must show that (i)
the expenditure of tax increment funds °to' undertake the improvements will be of benefit to the
Project Area(s) by helping" to eliminate blight within the Project Area(s) or providing affordable
housing; (ii) no other reasonable method of financing is available to, the community; and (iii) the
payment of funds for.the cost of the improvements are consistent with the Implementation Plan
adopted for the Project Area(s).
CITY RESOLUTION #4 —Section 334.45 of the CRL requires that the -legislative body consent to
the use of tax increment funds for''p_ ublic improvements and that certain findings have been made as
stated above.
These are annual resolutions which are required by the California Redevelopment Law. Even
though there is uncertainty regarding Redevelopment, staff is proceeding under the assumption.that
the CRL will continue to exist eitheras'it was before AB x1 26oras a Voluntary Alternative
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Redevelopment Program, andthat �al'1 requirements will remain in'"effect.
FINANCIAL IMPACTS:
Fund 5300 has a fund'balance of approximately $28;298487 which includes proceeds from the
201 l'bond of $11,138,456: $5,34 0;000"will be transferred from this fund during fiscal year 2011-
2012 for the capital improvement projects approved by the City'Council for FY 2011-2012 budget.
ATTACHMENTS
1. Resolution Determining the Necessity of Expending, Funds for the Planning and
Administration of ,Projects and Programs Which Facilitate) the, Production, Improvement, or
Preservation of Low and Moderate Income Housing for; FY 2011-2012:
2. A Joint Resolution of the City Council of Petaluma and the Petaluma Community
Development Commission Adopting Findings Pursuant to California Community
Redevelopment Law Section 33334.2(g) --for the Use of Low and Moderate Income Housing
Funds Outside the'Merged Project Area;
3. Resolution of `the; Petaluma Community Development Commission Authorizing the
Expenditure of.$5 310,000 of Tax Increment Funds in the Central Business District and/or
Petaluma Comm "unity Development Project Areas and Adopting Findings Required by
California,Health & Safety Code Section 33445';
4. Resolution of'the, City Council ofthe City of Petaluma Consenting to the Expenditure of
$5,310,000 of Tax Increment Funds in the Central Business District and/or Petaluma
Community Development Project Areas and' Adopting Findings Required by California
Health & Safety Code Section 33445
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ATTACHMENT # I
Resolution No.
PETALUMA COMMUNITY DEVELOPMENT COMMISSION
RESOLUTION DETERMINING THE NECESSITY OF EXPENDING FUNDS FOR THE
PLANNING AND ADMINISTRATION OF PROJECTS AND PROGRAMS WHICH
FACILITATE: THE PRODUCTION, IMPROVEMENT,, OR PRESERVATION OF LOW
AND MODERATE INCOME HOUSING' FOR
FY 2011-2012
WHEREAS, pursuant to the Community Redevelopment Law; California Health and Safety
Code Section 33000 et seq. (".CRL"), the Petaluma Community. Development Commission
("PCDC") has established and'implemented a Low and Moderate Income Housing Fund ("Housing
Fund"); and
WHEREAS, the Housing, Fund is_ utilized for the production, improvement, and
preservation of low and moderate income housing; and
WHEREAS, Section'33334.3(d) of the CRL requires the PCDC to make an annual
determination that PCDC funds expended from the Housing Fund for planning and administrative
expenses are necessary for the production', improvement and preservation of low and moderate
income housing; and
WHEREAS, in order to,comply with section 33334.3(4) of the CRL for fiscal year 2011-
2012, the PCDC desires to make a determination that funds expended, from the Housing Fund in the
amount of approximately fifteen percent (15%) of the total budget were necessary for the
production, improvement and preservation of low and.moderate income housing, such amount not
being, disproportionate to the, amount actually spent for the costs of production, improvement or
preservation of housing.
NOW, THEREFORE, BE IT RESOLVEDmTHAT the Petaluma Community
Development 'Commission hereby finds and determines that funds expended from the Housing Fund
for planning and administrative expenses in fiscal year 2011-2012 were necessary for the
production, .improvement and preservation of low and moderate income housing.
ATTACHMENT #2
Resolution No.
of the City. �of Petaluma, Ca146enia
A JOINT RESOLUTION OF THE CITY COUNCIL OF PETALUMA AND THE
PETALUMA COMMUNITY DEVELOPMENT COMMISSION ADOPTING FINDINGS
PURSUANT TO CALIFORNIA COMMUNITY REDEVELOPMENT, LAW SECTION
33334.2(g) FOR THE USE: OF LOW AND MODERATE INCOME HOUSINGYUNDS
OUTSIDE THE MERGED PROJECT AREA
WHEREAS; The City of Petaluma.("City") may receive planning applications for
development of affordable housing ,projects outside the Merged Project Area'which,,provide
affordable housing for very low-, low- and/or moderate -income households; and
WHEREAS, these,proj ects, would expand the City's stock of affordable housing; and
WHEREAS, the developer(s) of these projects may request financial assistance from the
Petaluma Community Development Commission ("PCDC"); and
WHEREAS, the PCDC may Have funds available in.its Low and Moderate Housing Fund
("Housing Fund") to provide the requested assistance; and
WHEREAS, the Central' Business District (CDB) and Petaluma Community Development
(PCD) Redevelopment Plans ("Redevelopment Plans") and Implementation Plan, as amended by
the PCDC, contain goals and objectives that support the production of affordable housing; and
WHEREAS, the use of the Housing Fund for such affordable housing is consistent with the
Redevelopment Plans and Implementation Plan; and
WHEREAS, pursuant to its authority under the Community Redevelopment Law,
California Health and Safety Code Section 33000 et seg.. (`-`CRL"), the PCDC. desires to provide
financial assistance 'to such, affordable housing projects from the Housing Fund to enable them to be
financially feasible; and
WHEREAS Health and, Safety Code Section 33334.2(g) authorizes the PCDC to use
monies from the Housing Fund, outside a redevelopment project area only upon adoption of
resolution's by the PCDC and' the City Council finding that such use -will be of benefit to the Merged
Project Area; and,
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WHEREAS, the; City-Council:dnd the PCDC desire 15 th s,Resolutiton to declare that the
expenditure of monies from 'the :P. CDC's Housing fund for affordable housing projects outside the
Merged.Project Area will be;of?benefit to the Merged Project Area, provided that such monies are
used in accordance with the requirernents of the CRL.
NOW, THEREFORE, BE IT RESOLVED by the Petaluma Community Development
Commission and the City Councitof the City of Petaluma as follows:
Section 1. The City Council and the Petaluma Community Development Commission, find and
determine that the"expenditure of monies, from the Low and Moderate .Income Housing fund for
affordable housing projects, outside the, Merged Project Area will increase the availability of
affordable housing in the City, -will be.Of'benefit to the Merged Project Area in accordance with the
requirements of the CRL, will further the goals of the Redevelopment Plans, and will be consistent
with the Implementation Plan for the Merged Project Area.
Section 2. The City Council,and.the Petaluma Community. Development Commission hereby
authorize the City Manager/Executive Director or his designee ,to take such actions as necessary to
carry out the intent of this Resolution.
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ATTACHMENT #3
Resolution No.
Petaluma Community Develop I ent,Commission
RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT
COMMISSION AUTHORIZING THE EXPENDITURE. OF $5,310,000 OF TAX
INCREMENT FUNDS IN THE CENTRAL BUSINESS DISTRICT AND/OR PETALUMA
COMMUNI`T'Y. DEVELOPMENT .PROJECT AREAS: AND ADOPTING FINDINGS
REQUIRED BY CALIFORNIA HEALTH & SAFETY CODE SECTION 33445
WHEREAS, in June 2007 the Petaluma Community Development Commission ("Agency") held a
public hearing and adopted the Five Year Implementation Plan and 'in October 2009 held a public
hearing and adopted an Addendum thereto (collectively, "Implementation Plan") for the Central
Business District Project Area ("CBD'-') and the Petaluma Community Development Project Area
("PCD") (collectively; the "Project Areas") in furtherance of the. City's adopted Redevelopment
Plans for the CBD and PCD; and
WHEREAS, the Implementation,Plan provides for the use; of $5,310;0,00 in tax increment funds for
the purpose of funding the following public improvements located inside of or contiguous to the
Project Areas:
® 101/E. Washington Street Interchange Improvements(PCD)
® Auto Center Drive Extension(P.CD)
® Old Redwood Highway,.Interchange(PCD)
® Rainier Ave: Cross,�tow�n�'Connector/Interchange(PCD),
O River Trail — Washington'to. Lakeville (PCD)
as more particularly described'.in the: Implementation Plan (collectively, "Public Improvements")
within the Project Areas ; and
WHEREAS, completion of the. Public Improvements will be of benefit to the Project Areas by
helping to eliminate blighting conditions in the Project Areas because the infrastructure upgrades
and circulation improvements. will address roadway, streetscape and transportation related
deficiencies; as well as, improving, impediments to circulation and access that deter revitalization in
certain areas within the Project Areas; and
WHEREAS, the work necessary to.rehabilitate and reconstruct the roadways is far in excess of the
criteria established by the Association of Bay Area Governments (ABAG) for routine roadway
maintenance; and
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WHEREAS, Agency -and City -staff have explored poten't'ial funding sources and determined that
aside, from $3,777,000 in:funds froin various State and Local"agencies (See Exhibit 1) which will be
available `to undertake; the Pub'licJmprovements, no other, reasonable means of financing the Public
Improvements are available to the community; and
WHEREAS, California. Health sand ,S'afety Code Section 33445 provides that a redevelopment
agency may, with the consent of. the legislative body; pay for. the .cost of the construction of
improvements that are publicly owned and are located inside of or, contiguous to a project area if the
legislative body' determinesall of the, following:
1. That the` construction of the.improvements that are publicly owned are of benefit to the
project area by helping to eliminate blight within the project area;
2. That no other reasonable means of financing the installation or construction of the
improvements that° are publicly owned are available to the community; and
That the payment of funds for'thecost of the improvements that are publicly owned is
consistent with the iinplerneniation plan adopted by the redevelopment agency.
NOW, THEREFORE, BE IT RESOLVED that the Petaluma.Community Development
Commission:
1. Adopts the findings stated herein as true and correct and as its, findings.
2. Finds that, (i) the expenditure of tak increment funds to undertake the improvements that are.
publicly owned as, set'forth in this;Resolution and the -Implementation Plan will be of benefit
to the Project Areas by helping to eliminate blight within the Project Areas; (ii) no other
reasonable means of financing the installation_ or construction of the improvements that are
publicly owned are reasonably available to the community; and (iii) the payment of funds
for the cost of the.improvements that are publicly owned is consistent with the
Implementation Plan adopted for the Project Areas.
3., Authorizes the, 'Use of $5JI0.;0.00',.in Agency tax increment"funds for the Public
Improvements .described herein.
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EXHIBIT 1
PCDC Funding,
Other funding in
Project
for FY 2011-2012
FY'2011-2012
Source
Old Redwood Highway Interchange,
$1,258,000
$3,0,0000
State Local
Partnership Funds
(SLPP)
Auto Center Drive Extension
$177,000
$139,000
Prop 1 B
101 /E. Washington Interchange
$1,112,000
$0.00
Rainier Ave. Crosstown Connector
$1,356;000
$3555000
Traffic Mitigation
Impact Fees
River Trail — Washington to
$1,407,000
$283,000
Measure M
Lakeville
TOTAL,
5,310,000
3,7779000
ATTACHMENT #4
Resolution No.
for the City of Petaluma, CA,
RESOLUTION OF THE CI'T'Y COUNCIL OF TIIE, CITY OF PETALUMA
CONSENTING TO THE EXPENDITURE OF $5,310,000 OF TAX INCREMENT FUNDS IN
THE CENTRAL BUSINESS DISTRICT ANWOR, PETALUMA COMMUNITY
DEVELOPMENT PROJECT AREAS AND ADOPTING FINDINGS REQUIRED BY
CALIFORNIA HEALTH & SAFETY CODE SECTION 33445
WHEREAS, in June 2007' the Petaluma Community Development Commission ("Agency") held a
public hearing and adopted the Five Year.Implementatio,i Plan and in, October 2009 held a public
hearing and adopted an Addendum thereto (collectively, "Implementation, Plan") for the Central
Business District Project Area ("CBD"). and the Petaluma Community Development Project Area
("PCD") (collectively, the "Project Areas") in furtherance of the City's adopted Redevelopment
Plans for the CBD and PCD; and
WHEREAS, the Implementation.Plan provides for the use of $5;310,000 in tax increment funds for
the purpose of funding the following public improvements located, inside or contiguous to the
Project Areas:
® 101/E. Washington Street hiterchange Improvements(PCD)
® Auto Center Drive Extension(PCD)
® Old Redwood Highway':Interchange(PCD)
® Rainier Ave. Cross-town Connector/Interchange(PCD)
® River Trail — Washington to Lakeville (PCD)
as more particularly described in the Implementation Plan (collectively, "Public Improvements")
within the Project Areas ; and
WH'ERE'AS, completion of the Public. Improvements will be of benefit, to the .Project Area by
helping to eliminate blighting conditions in the Project,Areas because the"infrastructure upgrades
and circulation improvements will address roadway, streetscape and transportation related
deficiencies; as well as improving impediments to circulation and access that deter revitalization in
certain areas within the Project Areas; and -
WHEREAS, the work necessary to rehabilitate and reconstruct the roadways is far in excess of the
criteria established by the Association of Bay Area Governments (ABAG) for routine roadway
maintenance; and
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W14EREAS, .Agency and City :staff have explored potential funding. sources ,and determined that
aside from $3,777;000, in,Turids""froni various State and Local age.ncie's,,(See Exhibit 1) which will be
available to undertake the PubfieIiriprovements, no other .reasoriable inearis of financing the Public
Improvements are available to the, community; and
WHEREAS, California Health and Safety Code Section 33445 provides that:a redevelopment
agency may, with the consent of the legislative body, pay for the cost of the construction of
improvements that are publicly owned and, are located inside of or contiguous. to a project area if the
legislative body determines all of the following:
1. That the construction of the improvements that are publicly owned are of benefit to the
project area by helping to eliminate blight `within"the project area;
2. That no other reasonable means of financing the installation. or construction of the
improvements that ate,publicly owned are available to the community; and
3. That the payment of fun ds_for'the.cost of the improvements that are publicly owned is
consistent with the ,implementation plan adopted by the! redevelopment agency.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City hereby:
2. Adopts the findings stated herein as true and correct and' as its findings.
2. Finds that (i) the expenditure of tax increment funds to undertake the improvements that are
publicly owned as forth in this Resolution and the Implementation Plan will be of benefit
to the Project Areas by helping, to eliminate blight withi6'the Project Areas; (ii) no other
reasonable means of financing, the installation or construction of 'the improvements that are
publicly owned are reasonably .available to the community; and (iii) the payment of funds
for the cost of the improvements that are publicly owned is.:consistent with the
Implementation Plan adopted for -the Project Areas.
3. Consents to the: expenditure of $5,3'10,000 in Agency tax increment funds for the', Public
"Improverrients, described herein.
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4
Project
Old Redwood Highway Interchange'
Auto Center Drive Extension
101/E. Washington Interchange
Rainier Ave. Crosstown Connector
River Trail — Washington to "
Lakeville
TOTAL
EXHIBIT 1
PCDC Funding
Other funding in
for FY 2011-2012
FY 2011-2012
Source
$1,258,000
$3,000;000
State Local
Partnership Funds
(SLPP)
$177,000
$139,000
Prop 1 B
$1,112,000
$0.00
$.1,356,000
$355,000
Traffic Mitigation
Impact Fees
$1,407,000
$283,000
Measure M
5,310,000
3,777,000
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