Loading...
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