CDC - Item 2 - Expenditure Of Commission Tax Increment RevenuesECONOMIC DEVELOPMENT
REDEVELOPMENT
REAL ESTATE CONSULTING
AFFORDABLE HOUSING
500 S. KRAEMER BLVD.
SUITE 365
BREA, CA 92821
T: (714) 985-2880
F' 171d1 QR5-9RR5
TO:
BILL CROWE, EXECUTIVE DIRECTOR
FROM:
STEVE COPENHAVER, GRC
DATE:
December 8, 2004
SUBJECT:
PUBLIC HEARING-ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION RESOLUTION 2004-24
PERTAINING TO THE EXPENDITURE OF COMMISSION
TAX INCREMENT REVENUES ON THE ROSEMEAD
PUBLIC SAFETY CENTER LOCATED AT 3018 NORTH
CHARLOTTE AVENUE, ROSEMEAD, CALIFORNIA.
California Redevelopment Law requires that the legislative body make certain
findings prior to the expenditure of redevelopment tax increment revenues on
any public facility or building. These findings include that: 1) the proposed
project is of benefit to the Project Area; 2) there is no other reasonable means
of financing the project; and 3) the proposed project will assist in the
elimination of blight in the Project Area.
Pursuant to the earlier action of the City Council approving the plans,
construction plans are out to bid for converting the Zapopan community
building to a sub-station for the Sheriffs Department. The. current plan for
financing the building improvements is to fund approximately one-half of the
cost from both CDBG revenues and Commission tax increment revenues. The
anticipated cost of the project is between $400,000 and $500,000 depending
on the strength of the bids and which design alternatives are chosen by the
City Council. The close of bid date has been extended to January 13, 2005.
These will be analyzed and brought back to the City Council at the first
available meeting.
COMMISSION AGENDA
DEC 12 2004
ITEM No. 4.
Staff Report Regarding Rosemead Community Development Commission
Resolution No. 2004-24
December 8, 2004
Page 2
The attached summary report, prepared in compliance with State law,
describes the proposed project and each required Commission finding in
detail. Overall, the Rosemead Public Safety Center is ideal for Commission
funding because the law permits it, the City has no excess or unencumbered
capital improvement funds available and the project will be of direct benefit to
the residents of the Project Area and the community. The building will
provide both a needed service and put an underutilized building to productive
use.
Recommendation
After closing the Public Hearing, approve Rosemead Community
Development Commission Resolution 2004-24 pertaining to the expenditure
of Commission Tax Increment Revenues on the Rosemead Public Safety
Center located at 3018 North Charlotte Avenue, Rosemead, California.
SUMMARY REPORT PERTAINING TO THE
REHABILITATION OF THE ZAPOPAN PUBLIC SAFETY
BUILDING BY THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION ("COMMISSION")
This report has been prepared in compliance with Sections 33679 and 33445 of the California
Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), which
provides in part:
33679. Agency Payment for Public Buildings- Public Hearing Requirements.
"Before an agency commits to use the portion of taxes to be allocated and paid to an agency
pursuant to subdivision (b) of Section 33670 for the purpose of paying all or part of the value of
the land for, and the cost of the installation and construction of, any publicly owned building,
other than parking facilities, the legislative body shall hold a public hearing...
"...There shall be available to the public for inspection and copying, at a cost not to exceed the
cost of duplication, a summary which includes all of the following:
(a) Estimates of the amount of such taxes proposed to be used to pay for such land and
construction of any publicly owned building, including interest payments.
(b) Sets forth the facts supporting the determinations required to be made by legislative
body pursuant to Section 33445.
(c) Sets for the redevelopment purpose for which such taxes are being used to pay for
the land and construction of such publicly owned building."
33445. Agency's Authority to Pay for Public Improvements.
"(a) Notwithstanding Section 33440, an agency may, with the consent of the legislative body,
pay all or a part of the value of the land for and the cost of the installation and construction of
any building, facility, structure, or other improvement which is publicly owned either within or
without the project area, if the legislative body determines all of the following:
1. That the buildings, facilities, structures, or other improvements are of
benefit to the project area or the immediate neighborhood in which the project is
located, regardless of whether the improvement is within another project area, or
in the case of a project area in which substantially all of the land is publicly
owned that the improvement is of benefit to an adjacent project area of the
agency.
2. That no other reasonable means of financing the buildings, facilities,
structures, or other improvements, are available to the community.
3. That the payment of funds for the acquisition of land or the cost of
buildings, facilities, structures, or other improvements will assist in the elimination
of one or more blighting conditions inside the project area or provide housing for
low- or moderate-income persons, and is consistent with the implementation plan
adopted pursuant to Section 33490.
Rosemead- Section 33445 Report 11/30/2004
Page 1
"(b) The determinations by the agency and the local legislative body pursuant to subdivision (a)
shall be final and conclusive...."
A. SITE AND PROJECT DESCRIPTION
y
The Subject Propert
The subject property consists of a former community services building located at 3018
North Charlotte Avenue. The subject property consists of an approximately 4,250
square foot building originally constructed in the early 1980's. The site area is estimated
at 13,710 square feet in the county tax assessor's records. The City intends to reuse the
building as: a) a sub-station for the Sheriff's Department in south Rosemead; and b) an
emergency operations center. The facility will replace a smaller Sheriff's sub-station
located in Garvey Park. The site is owned by the City of Rosemead and the City plans
to allow the Sheriff's Department to occupy the location at no cost.
The subject property is located within Redevelopment Project Area No. 1 ("Project
Area") which was adopted by the City Council on June 27, 1972 by Ordinance No. 340
the 1972.
2. Project Description
The project consists of renovating elements of the building including roof repairs,
replacing the HVAC system, updating interior lighting, repairing or replacing wall, ceiling
and flooring improvements and reconstructing the restrooms to meet handicap
standards. In addition to the renovation efforts, the project consists of several interior
improvements to convert the building for Sheriff's Department use. These improvements
include the construction of: a) public counter and lobby; b) administrative offices; b) a
report preparation area for deputies working in the local area; c) an office for the STAR
program; d) an office for visiting deputies and law enforcement personnel; e)
improvements to the large meeting room for training sessions; and f) improvements to
make the facility suitable as an emergency operating center including a diesel generator,
special phone and data lines and a security system.
C. SUMMARY OF THE COMMISSION'S ANTICIPATED COSTS
Property Acquisition
The Commission does not plan to acquire the subject property.
2. Cost of Improvements
The estimated cost of the building and site improvements is approximately $500,000.
This includes building improvements that are currently out for bid and future site
improvements consisting of parking lot and exterior lighting improvements, exterior
painting, and additional interior improvements in the kitchen area of the building to be
accomplished at a future unspecified date.
Funding for the Rosemead Public Safety Center will be from two major sources including
approximately $250,000 in Community Development Block Grant funds and $250,000 in
redevelopment tax increment funds.
3. Bond Financing and Interest Costs
Rosemead- Section 33445 Report 11/30/2004
Page 2
The Commission will not expend any bond proceeds in the rehabilitation of the building.
4. Miscellaneous Expenditures
The Commission has expended miscellaneous funds for professional fees such as
architects, lawyers and consultants associated with the proposed building
improvements. These funds are estimated at approximately $80,000.
D. BENEFIT TO THE PROJECT AREA
The proposed improvement of the subject property as a Public Safety Center is a benefit to the
Project Area for the following reasons:
• The reuse of the office building as a Sheriff's Department facility will benefit the Project
Area by converting a vacant and obsolete building that is no longer required or
occupied by the Community Services Department to a vital and productive use that
serves the community.
• The proposed public facility will serve the Project Area and the Community by providing
a convenient and central location for conducting the affairs of the Sheriff's Department
in south Rosemead.
• The Public Safety Center will serve as an emergency operating center and provide a
location that can remain open even if the San Bernardino Freeway and bridges leading
to south Rosemead are damaged and access is limited.
• The provision of office space for deputies in south Rosemead will reduce travel time for
meetings, briefings and report writing and allow increased time for patrolling the Project
Area and the greater community.
• The training room within the facility will be made available for community group
meetings, the Fire Authority and other interested groups that server the community.
• The proposed facility will help augment a police presence in the Project Area and the
Community.
E. ELIMINATION OF BLIGHT
The reuse of the subject property as a Sheriff's department facility will eliminate blight by
upgrading an community building that was previously vacant and in need of substantial
rehabilitation. The proposed sale will bring activity and employment to the Project Area, a police
presence to the adjacent City Park and neighborhood and help meet the public need for the
community to interact with the Sheriff's Department.
F. PUBLIC IMPROVEMENT COST
Section 33445 of the Health and Safety Code permits redevelopment agencies to fund public
improvements and facilities that are publicly owned if no other reasonable means of financing
are available to the community. The Commission's contribution towards the rehabilitation and
conversion of the subject building is essentially a payment for a public facility. In discussions
Rosemead- Section 33445 Report 11/3012004
Page 3
with the City Manager and the Director of Finance, it is clear that no other reasonable means of
financing the facility are available. This is evidenced by the following:
• Property Tax and sales tax proceeds to the City have lagged the increase in the cost of
providing municipal services to the community over the last 15 years.
• Budget difficulties at the State level have caused a net decrease in available revenue
due to ERAF payments required by the state and the deferral of certain state
subventions such as motor vehicle license fees.
• The City does not have any capital improvement funds available for the project without
deferring other projects needed for the safety and growth of the community.
The City has applied for federal grant funds to assist in the funding of the proposed
project to decrease the burden on the Commission's share of the project cost. The
outcome of these efforts to secure funding is indeterminate at this time leaving no other
available source of funds.
Considering the aforementioned points, this City of Rosemead finds that there is no other
means of financing the proposed Public Safety Center facility. The public improvement costs
associated with the proposed project are consistent with the requirements of Section 33445 of
the California Health and Safety Code.
F. SUMMARY STATEMENT
This report complies with the requirements of Sections 33679 and 33445 of the California
Health and Safety Code and the City Council finds that the proposed project is of benefit to the
Project Area, contributes to the elimination of blight and that there is no other reasonable means
of financing the Public Safety Center.
Rosemead- Section 33445 Report 1113012004
Page 4
ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
RESOLUTION NO. 2004-24
A RESOLUTION OF THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION MAKING CERTAIN FINDINGS
AND DETERMINATIONS WITH RESPECT TO PAYMENT OF
ROSEMEAD REDEVELOPMENT PROJECT AREA NO. 1 FUNDS
FOR RENOVATION OF THE ZAPOPAN COMMUNITY CENTER
FOR USE AS A PUBLIC SAFETY FACILITY
THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION RESOLVES
AS FOLLOWS:
WHEREAS, the Zapopan Community Center facility (Exhibit A) is located
within the boundaries of Rosemead Redevelopment Project Area No. 1;
WHEREAS, the Zapopan Community Center is no longer used for
community center use;
WHEREAS, the City Council has previously approved plans and
specifications for renovation of the Zapopan Community Center for use as a
public safety facility to house a sub-station for sheriff department operations .in
and about the Project Area;
WHEREAS, the Rosemead City Council, after conducting a public. hearing
in accordance with the requirements of Health and Safety Code §33679, has
authorized the Rosemead Community Development Commission to pay a portion
of the costs of renovating the facility in accordance with the approved plans and
specifications;
NOW THEREFORE, THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION FINDS, DETERMINES AND RESOLVES AS FOLLOWS:
Section 1: The renovation of the Zapopan Community Center pursuant to the
plans and specifications (the "Project") is of benefit to the Redevelopment Project
Area.
Section 2. For the reasons detailed in the summary report, there are no other
reasonable means of financing such renovation .
Section 3. The financial contribution to the project by the Community
Development Commission will eliminate conditions of blight within the Project
Area;
Section 4. The establishment of a public safety facility in the Project Area is
consistent with the Implementation Plan for the Project Area.
Section 5. The Executive Director is hereby authorized to expend funds on the
Project in an amount not to exceed the greater of two hundred fifty thousand
dollars ($250,000.00) or one-half the costs of renovation.
Section 6. The Secretary shall certify to the adoption of this Resolution.
c.
PASSED, APPROVED and ADOPTED this 14th day of December, 2004.
Margaret Clark, Chairperson
ATTEST:
Nancy Valderrama, Commission Secretary
EXHIBIT A
Project Location
A