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HomeMy WebLinkAboutItem 3f: Resolution 6723: Use of Redevelopment Agency Funds for Public ImprovementsDATE: June 15, 2010 TO: Mayor and City Council Chairman and Members, Arcadia Redevelopment Agency STAFF REPORT Development Services Department FROM: Jason Kruckeberg, Development Services Director /Deputy Executive2j Director SUBJECT: CITY COUNCIL RESOLUTION NO. 6723 AUTHORIZING THE USE OF REDEVELOPMENT AGENCY FUNDS FOR PUBLIC IMPROVEMENTS. Recommendation: Adopt BACKGROUND ARCADIA REDEVELOPMENT AGENCY RESOLUTION NO. ARA -234 AUTHORIZING THE USE OF REDEVELOPMENT FUNDS FOR PUBLIC IMPROVEMENTS Recommendation: Adopt Redevelopment Law (Health and Safety Code Section 33445) requires that if redevelopment funds are to be used to pay for improvements which will be publicly owned, both within and outside of the project area, the City Council and the Agency Board must make three findings: 1) that the proposed improvements are of benefit to the Project Area or the immediate neighborhood in which the project is located; 2) that there are no other reasonable means of financing the proposed project available to the community; and 3) that the project will assist in the elimination of blighting conditions and is consistent with the adopted Implementation Plan. A Summary Report describing the proposed Agency Capital Improvement Projects (Attachment A) has been prepared setting forth the amount of tax increment to be used to fund the proposed capital improvements, setting forth the facts to support the three findings citied above, and describing the redevelopment purposes for which the funds are being used. Staff is recommending that the City Council adopt City Council Resolution No. 6723 (Attachment B) and the Redevelopment Agency adopt Resolution No. ARA -234 (Attachment C) making findings pursuant to Health and Safety Code Sections 33445 and authorizing the use of Redevelopment Agency funds for Public Improvements comprising the Agency's Capital Improvement Program. DISCUSSION The City -wide Capital Improvement Program (CIP) lists projects of a citywide nature and projects in a specific area of the City that serve a larger population. There are important projects near or in the Redevelopment Project Area for which no City funds are available or where Redevelopment funds are needed to supplement the overall cost of the project to the City. Together these projects constitute the Agency's proposed annual CIP. These proposed projects are listed below and are - described in detail in the Summary Report (Attachment A): 1) Gold Line Transit Plaza This project will develop a conceptual design for enhancements to the Gold Line Transit Plaza that will be located at the northwest corner of First Avenue and Santa Clara Street. The design will be used by the Gold Line Authority as a guide for its base improvements to the area. The City's plan will add enhancements to the transit plaza in the future to upgrade the quality of the overall Gold Line appearance and experience in Arcadia. 2) Various Traffic Improvements Per the Traffic Signal Improvement Master Plan These improvements will consist of the installation of interconnection and communication upgrades to First Avenue between Wheeler Avenue and Santa Clara Street, installation of a flashing crosswalk at Santa Anita Avenue and Alta Street, protected /permissive left turn phases at Second Avenue and Huntington Drive, installing a new controller and cabinet at Second Avenue and Santa Clara Street and other miscellaneous communication upgrades. 3) Huntington Drive Capacity Improvements This project involves reconstruction /widening of Huntington Drive between Colorado Place and Santa Anita Avenue to provide: 1) a third travel lane in the westbound Huntington Drive approach at Colorado Place, 2) a right turn in the northbound approach of Huntington Drive at Santa Clara Street, 3) a second left turn lane on both northbound and southbound approaches of Santa Anita Avenue and Huntington Drive, and 4) reconstruction of median an channelization islands and traffic signal modification. Use of Agency Funds for Public Improvements June 15, 2010 Page 2 4) Overflow Parking Lot on Live Oak Avenue This project will construct a new asphalt parking lot for the new Church in Arcadia building at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia and relocation to its new building on Live Oak. ENVIRONMENTAL ASSESSMENT The projects are categorically exempt per Section 15301 Class 1(d) of the California Environmental Quality Act. Staff has prepared a Preliminary Exemption Assessment and Notice of Exemption for the projects. FISCAL IMPACT As part of the FY 2010 -11 Capital Improvement Program, $800,000 in Redevelopment Agency funds are proposed for these projects. RECOMMENDATION That the City Council adopt Resolution No. 6723, making findings pursuant to Health and Safety Code Section 33445 authorizing the use of Redevelopment Agency funds for Public Improvements. That the Redevelopment Agency adopt Resolution No. ARA -234, making findings pursuant to Health and Safety Code Sections 33445 to authorize the use of Redevelopment Agency funds for Public Improvements. Approved: 1ti- --d) - ^m-- Donald Penman, City Manager /Executive Director Attachment A — Summary Report Attachment B — City Council Resolution No. 6723 Attachment C — Arcadia Redevelopment Agency Resolution No. ARA -234 Use of Agency Funds for Public Improvements June 15, 2010 Page 3 Introduction Attachment A SUMMARY REPORT FISCAL YEAR 2010- 2011 ARCADIA REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROJECTS This Summary Report has been prepared by the Arcadia Redevelopment Agency ( "Agency ") consistent with Health and Safety Code Section 33445 and serves to describe several proposed capital improvement projects in and near the Project Area. The Summary Report has been prepared in order to explain to the public why Agency tax increment funds are to be used to pay for these public improvements. The 2010 -2015 Agency Five Year Implementation Plan was adopted on December 1, 2009. The projects listed below are included in the Implementation Plan. These projects will benefit the project area by enhancing circulation which facilitates access to local businesses and creates a more positive image and impression of the Project Area. Additionally, work on the Gold Line will benefit the businesses in the area through the integration of the station and the surroundings into the downtown area, bringing new customers to Arcadia through the expansion of mass transit. In the case of the overflow parking lot, this was part of a significant Agency project to relocate the Church in Arcadia to provide additional space to Rusnak Mercedes Benz through a lease. This creates additional revenue benefit to the City and fosters retention of an important land use within the Redevelopment Area. Redevelopment funding is proposed for these projects since this is the only source available during the current financial climate, and without its use, these critical improvements would be delayed or impossible. 1) Design of Gold Line Transit Plaza $50,000 This project will develop a conceptual design for enhancements to the Gold Line Transit Plaza that will be located at the northwest corner of First Avenue and Santa Clara Street. The design will be used by the Gold Line Authority as a guide for its base improvements to the area. The City's plan will add enhancements to the transit plaza in the future to upgrade the quality of the overall Gold Line appearance and experience in Arcadia. This clearly meets the required finding that this benefit will improve the immediate neighborhood and will assist in the elimination of blighting conditions (an empty lot currently). There is no other funding source for this project. 2) Various Traffic Signal Improvements $50,000 These improvements will consist of the installation of interconnection and communication upgrades to First Avenue between Wheeler Avenue and Santa Clara Street, installation of a flashing crosswalk at Santa Anita Avenue and Alta Street, 1 protected /permissive left turn phases at Second Avenue and Huntington Drive, installing a new controller and cabinet at Second Avenue and Santa Clara Street and other miscellaneous communication upgrades. These improvements are all part of the Traffic Signal Master Plan. They well be a significant benefit to the immediate neighborhood in that they will improve traffic flow in the Project Area and improve safety and accessibility. There is no other funding source for this project. 3) Huntington Drive Capacity Improvements $600,000 This project involves reconstruction /widening of Huntington Drive between Colorado Place and Santa Anita Avenue to provide: 1) a third travel lane in the westbound Huntington Drive approach at Colorado Place, 2) a right turn in the northbound approach of Huntington Drive at Santa Clara Street, 3) a second left turn lane on both northbound and southbound approaches of Santa Anita Avenue and Huntington Drive, and 4) reconstruction of median an channelization islands and traffic signal modification. This project will provide a tremendous benefit to the Project Area with improved traffic flow, an enhanced image of the Project Area, ease of reaching local businesses, and accessibility. This is estimated as a $2.1 million project. The redevelopment- funded portion is crucial for project completion. 4) Overflow Parking Lot on Live -Oak Avenue- $1 00,000 This project will construct a new asphalt parking lot for the new Church in Arcadia building at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia and relocation to its new building on Live Oak. There is no other funding for this project. It will provide a benefit to the surrounding neighborhood and it will eliminate an underutilized and undeveloped parcel and put it into use to facilitate the relocation of a use out of the Project Area. Grand Total $800,000 RESOLUTION NO. 6723 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, MAKING FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445, AND AUTHORIZING THE USE OF REDEVELOPMENT AGENCY FUNDS FOR PUBLIC IMPROVEMENTS WHEREAS, the Arcadia Redevelopment Agency ( "Agency ") proposes to pay Eight Hundred Thousand Dollars ($800,000) in the Agency's Capital Improvement Program for improvements in the public right -of -way ( "Improvements ") in, adjacent to, and near the Central Redevelopment Project Area ( "Project Area "), and within the original redevelopment survey area; and WHEREAS, pursuant to Health and Safety Code Section 33445, the Agency may with consent of the City Council of the City of Arcadia ( "City Council ") and subject to the City Council's ability to make those certain factual determinations set forth below, pay all or part of the Improvements if the City Council makes the following three findings: a) that the proposed Improvements are of benefit to the Project Area or the immediate neighborhood in which the project is located; b) that there are no other reasonable means of financing the Improvements available to the community; c) that the payment of Agency funds for the Improvements will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the Implementation Plan adopted pursuant to Section 33490; and WHEREAS, Agency staff have prepared a certain report ( "Summary ") which sets forth the facts regarding the amount of property taxes to be used to pay for the proposed improvements, sets forth the facts supporting the three determinations to be made by the City Council pursuant to Health and Safety Code Section 33445, and sets forth the redevelopment purpose for which such taxes are being used; and WHEREAS, the City Council has reviewed and considered the Summary and the other written and oral testimony presented at or prior to the time of the City Council's consideration of this Resolution; and WHEREAS, pursuant to the State of California and local CEQA Guidelines, staff has prepared a Preliminary Exemption Assessment for the projects listed in the Summary, which are categorically exempt under the State CEQA Guidelines, Sections 15300 to 15333 Categorical Exemptions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The facts set forth in the recitals are true and correct. SECTION 2. The facts supporting those certain findings required by Health and Safety Code Section 33445 are true and correct as set forth in the Summary, Attachment "A" attached hereto, and as set forth in the staff report submitted to and considered by the City Council with reference to this Resolution. 2 SECTION 3. Based on the information made available in the Summary and in the staff report accompanying this Resolution, the oral presentation of staff, and other written and oral evidence as presented to the City Council, the City Council hereby makes the following findings pursuant to Health and Safety Code Section 33445: a) That the proposed Improvements both inside and outside the Project Area are of benefit to the Project Area, or the immediate neighborhood in which the project is located, because they improve the appearance of the Project Area and thereby encourage greater patronage of local shops and stores leading to increased economic benefits to property owners, merchants, the Agency, and the City and will also encourage new development. b) That there are no other reasonable means of financing the proposed Improvements available to the community because of the large number of other capital improvement needs in the City and the limited availability of alternate funding sources. c) That the payment of funds for the proposed Improvements will assist in the elimination of one or more blighting conditions inside the Project Area, and is consistent with the Implementation Plan adopted pursuant to Health and Safety Code Section 33490 because the Improvements will improve service to the Project Area, and are set forth in the Five 3 Year Implementation Plan and Housing Program 2010 -2015 adopted by Agency Resolution No. ARA -230 on December 1, 2009. SECTION 4. Based upon the Preliminary Environmental Assessment, and the determination by the City Council that the projects listed in the Summary are categorically exempt under the State CEQA Guidelines, Sections 15300 to 15333 Categorical Exemptions, City staff is authorized and directed to file a Notice of Exemption with the Los Angeles County Clerk. SECTION 5. The City Council hereby approves and consents to the payment by the Arcadia Redevelopment Agency for all and any part of the Improvements which are part of the Agency's Capital Improvement Program. SECTION 6. The City Clerk shall certify to the adoption of this Resolution. ATTEST: City Clerk Passed, approved and adopted this day of APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 4 , 2010. Mayor of the City of Arcadia SUMMARY REPORT FISCAL YEAR 2010- 2011 ARCADIA REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROJECTS Introduction Attachment A This Summary Report has been prepared by the Arcadia Redevelopment Agency ( "Agency ") consistent with Health and Safety Code Section 33445 and serves to describe several proposed capital improvement projects in and near the Project Area. The Summary Report has been prepared in order to explain to the public why Agency tax increment funds are to be used to pay for these public improvements. The 2010 -2015 Agency Five Year Implementation Plan was adopted on December 1, 2009. The projects listed below are included in the Implementation Plan. These projects will benefit the project area by enhancing circulation which facilitates access to local businesses and creates a more positive image and impression of the Project Area. Additionally, work on the Gold Line will benefit the businesses in the area through the integration of the station and the surroundings into the downtown area, bringing new customers to Arcadia through the expansion of mass transit. In the case of the overflow parking lot, this was part of a significant Agency project to relocate the Church in Arcadia to provide additional space to Rusnak Mercedes Benz through a lease. This creates additional revenue benefit to the City and fosters retention of an important land use within the Redevelopment Area. Redevelopment funding is proposed for these projects since this is the only source available during the current financial climate, and without its use, these critical improvements would be delayed or impossible. 1) Design of Gold Line Transit Plaza $50,000 This project will develop a conceptual design for enhancements to the Gold Line Transit Plaza that will be located at the northwest corner of First Avenue and Santa Clara Street. The design will be used by the Gold Line Authority as a guide for its base improvements to the area. The City's plan will add enhancements to the transit plaza in the future to upgrade the quality of the overall Gold Line appearance and experience in Arcadia. This clearly meets the required finding that this benefit will improve the immediate neighborhood and will assist in the elimination of blighting conditions (an empty lot currently). There is no other funding source for this project. 2) Various Traffic Signal Improvements $50,000 These improvements will consist of the installation of interconnection and communication upgrades to First Avenue between Wheeler Avenue and Santa Clara Street, installation of a flashing crosswalk at Santa Anita Avenue and Alta Street, 1 protected /permissive left turn phases at Second Avenue and Huntington Drive, installing a new controller and cabinet at Second Avenue and Santa Clara Street and other miscellaneous communication upgrades. These improvements are all part of the Traffic Signal Master Plan. They well be a significant benefit to the immediate neighborhood in that they will improve traffic flow in the Project Area and improve safety and accessibility. There is no other funding source for this project. 3) Huntington Drive Capacity Improvements $600,000 This project involves reconstruction /widening of Huntington Drive between Colorado Place and Santa Anita Avenue to provide: 1) a third travel lane in the westbound Huntington Drive approach at Colorado Place, 2) a right turn in the northbound approach of Huntington Drive at Santa Clara Street, 3) a second left turn lane on both northbound and southbound approaches of Santa Anita Avenue and Huntington Drive, and 4) reconstruction of median an channelization islands and traffic signal modification. This project will provide a tremendous benefit to the Project Area with improved traffic flow, an enhanced image of the Project Area, ease of reaching local businesses, and accessibility. This is estimated as a $2.1 million project. The redevelopment- funded portion is crucial for project completion. 4) Overflow Parking Lot on Live Oak Avenue $100,000 This project will construct a new asphalt parking lot for the new Church in Arcadia building at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia and relocation to its new building on Live Oak. There is no other funding for this project. It will provide a benefit to the surrounding neighborhood and it will eliminate an underutilized and undeveloped parcel and put it into use to facilitate the relocation of a use out of the Project Area. Grand Total $800,000 2 RESOLUTION NO. ARA 234 A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, CALIFORNIA, AUTHORIZING THE USE OF REDEVELOPMENT AGENCY FUNDS FOR PUBLIC IMPROVEMENTS WHEREAS, the Arcadia Redevelopment Agency ( "Agency ") proposes to pay Eight Hundred Thousand Dollars ($800,000) in the Agency's Capital Improvement Program for improvements ( "Improvements ") in the public right -of- way and on public property in, adjacent to, and near the Central Redevelopment Project Area ( "Project Area "); and WHEREAS, Health and Safety Code Section 33445 requires that if redevelopment funds are to be used to pay for improvements which will be publicly owned, the City Council of the City of Arcadia ( "City Council ") must make the following findings: a) that the proposed Improvements are of benefit to the Project Area or the immediate neighborhood in which the project is located; b) that there are no reasonable means of financing the buildings, facilities, structures or other improvements; c) that the 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; and WHEREAS, the Agency has caused the preparation of, and the City Council has reviewed and considered, a summary report (the "Summary "), attached hereto as Attachment "A ", setting forth the facts regarding the amount of property taxes to be used to pay for the proposed improvements and facts supporting the foregoing findings; and WHEREAS, on December 1, 2009 by Resolution No. ARA -230, the Agency adopted a Five Year Implementation Plan (20105- 2015), which describes remaining blight in the Project Area, describes programs, projects, and activities which are or will eliminate or reduce the blighting elements, and describes the projects in the Implementation Plan; and WHEREAS, the Agency has prepared and certified on November 20, 1973, a program environmental impact report for the Redevelopment Plan for the Project Area; and WHEREAS, pursuant to the State of California and local CEQA Guidelines, staff has prepared a Preliminary Exemption Assessment for the projects listed in the Summary, which are categorically exempt under the State CEQA Guidelines, Sections 15300 to 15333; and WHEREAS, the Agency is relying on the finding by the City Council that these projects are categorically exempt under State and local CEQA Guidelines. 2 NOW, THEREFORE, THE ARCADIA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the facts set forth in the recitals hereof are true and correct. SECTION 2. That the Summary attached hereto as Attachment "A" is hereby accepted and approved. SECTION 3. Based on the information made available in the Summary and in the staff report accompanying this Resolution, the oral presentation of staff, and other written and oral evidence as presented to the Agency, the Agency hereby makes the following findings pursuant to Health and Safety Code Section 33445: a) That the proposed improvements both inside and outside the Project Area are of benefit to the Project Area, or the immediate neighborhood in which the project is located, because they improve the appearance of the Project Area and thereby encourage greater patronage of local shops and stores leading to increased economic benefits to property owners, merchants, the Agency, and the City and will also encourage new development. b) That there are no other reasonable means of financing the proposed Improvements available to the community because of the large number of 3 other capital improvement needs in the City and the limited availability of alternate funding sources. c) That the payment of funds for the proposed Improvements will assist in the elimination of one or more blighting conditions inside the Project Area, and is consistent with the Implementation Plan adopted pursuant to Health and Safety Code Section 33490 because the Improvements will improve service to the Project Area, and are set forth in the Five Year Implementation Plan and Housing Program 2010 -2015 adopted by Agency Resolution No. ARA -230 on December 1, 2009. SECTION 4. That the Agency approves and authorizes the expenditure of Eight Hundred Thousand dollars ($800,000) in the Agency's Capital Improvement Program for the Improvements on public property and in the public right -of -way in, adjacent to, and near the Project Area, and Agency staff are directed to implement these projects. SECTION 5. The Agency Secretary shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] 4 Passed, approved and adopted this day of , 2010. ATTEST: Agency Secretary APPROVED AS TO FORM: Stephen P. Deitsch Agency Attorney p urd 5 Chairman Arcadia Redevelopment Agency Attachment A SUMMARY REPORT FISCAL YEAR 2010- 2011 ARCADIA REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROJECTS Introduction This Summary Report has been prepared by the Arcadia Redevelopment Agency ("Agency") consistent with Health and Safety Code Section 33445 and serves to describe several proposed capital improvement projects in and near the Project Area. The Summary Report has been prepared in order to explain to the public why Agency tax increment funds are to be used to pay for these public improvements. The 2010 -2015 Agency Five Year Implementation Plan was adopted on December 1, 2009. The projects listed below are included in the Implementation Plan. These projects will benefit the project area by enhancing circulation which facilitates access to local businesses and creates a more positive image and impression of the Project Area. Additionally, work on the Gold Line will benefit the businesses in the area through the integration of the station and the surroundings into the downtown area, bringing new customers to Arcadia through the expansion of mass transit. In the case of the overflow parking lot, this was part of a significant Agency project to relocate the Church in Arcadia to provide additional space to Rusnak Mercedes Benz through a lease. This creates additional revenue benefit to the City and fosters retention of an important land use within the Redevelopment Area. Redevelopment funding is proposed for these projects since this is the only source available during the current financial climate, and without its use, these critical improvements would be delayed or impossible. 1) Design of Gold Line Transit Plaza $50,000 This project will develop a conceptual design for enhancements to the Gold Line Transit Plaza that will be located at the northwest corner of First Avenue and Santa Clara Street. The design will be used by the Gold Line Authority as a guide for its base improvements to the area. The City's plan will add enhancements to the transit plaza in the future to upgrade the quality of the overall Gold Line appearance and experience in Arcadia. This clearly meets the required finding that this benefit will improve the immediate neighborhood and will assist in the elimination of blighting conditions (an empty lot currently). There is no other funding source for this project. 2) Various Traffic Signal Improvements $50,000 These improvements will consist of the installation of interconnection and communication upgrades to First Avenue between Wheeler Avenue and Santa Clara Street, installation of a flashing crosswalk at Santa Anita Avenue and Alta Street, 1 protected /permissive left turn phases at Second Avenue and Huntington Drive, installing a new controller and cabinet at Second Avenue and Santa Clara Street and other miscellaneous communication upgrades. These improvements are all part of the Traffic Signal Master Plan. They well be a significant benefit to the immediate neighborhood in that they will improve traffic flow in the Project Area and improve safety and accessibility. There is no other funding source for this project. 3) Huntington Drive Capacity Improvements $600,000 This project involves reconstruction /widening of Huntington Drive between Colorado Place and Santa Anita Avenue to provide: 1) a third travel lane in the westbound Huntington Drive approach at Colorado Place, 2) a right turn in the northbound approach of Huntington Drive at Santa Clara Street, 3) a second left turn lane on both northbound and southbound approaches of Santa Anita Avenue and Huntington Drive, and 4) reconstruction of median an channelization islands and traffic signal modification. This project will provide a tremendous benefit to the Project Area with improved traffic flow, an enhanced image of the Project Area, ease of reaching local businesses, and accessibility. This is estimated as a $2.1 million project. The redevelopment- funded portion is crucial for project completion. 4) Overflow Parking Lot on Live Oak Avenue $100,000 This project will construct a new asphalt parking lot for the new Church in Arcadia building at 630 East Live Oak Avenue. This parking lot is part of the Agency's obligation as part of the purchase of 21 Morlan Place from the Church in Arcadia and relocation to its new building on Live Oak. There is no other funding for this project. It will provide a benefit to the surrounding neighborhood and it will eliminate an underutilized and undeveloped parcel and put it into use to facilitate the relocation of a use out of the Project Area. Grand Total $800,000