HomeMy WebLinkAboutAGENDA REPORT 2011 0216 CC REG ITEM 09HITEM 9.H.
MOORPARK CITY COUNCIL '
AGENDA REPORT
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TO: Honorable City Council
From: David C. Moe Il, Redevelopment Manager
Date: January 27, 2011 (Council Meeting of 2116111)
Subject: Consider Review of Impacts to the City of Moorpark if the
Redevelopment Agency of the City of Moorpark is Abolished
BACKGROUND AND DISCUSSION
On January 10, 2011, the Governor proposed to do away with local redevelopment
agencies by July 1, 2011. His proposal abolishes local redevelopment in the following
manner:
• Statutory elimination of redevelopment agencies that will protect obligations for
existing projects and will divert $1.7 billion to the State's General Fund in 2011-
12 for Medi -Cal and trial courts. There will be $210 million leftover for distribution
to schools, cities, and counties, according to their proportionate share of current
property tax.
• In subsequent budget years, after deducting for existing debt obligations, the
remaining tax increment property tax will go to the cities, counties, and schools.
There will be a $50 million exception in the amount currently going to enterprise
special districts which are fee supported — this will go to counties.
• The current balances in redevelopment agencies housing set -aside funds will be
shifted to local housing authorities.
• A constitutional amendment to provide for 55- percent voter approval for local,
limited tax increases and bonding against local revenues for economic
development projects similar to those currently funded through redevelopment.
• Existing agencies will be required to cease creation of new obligations. The local
governmental entity will be required to designate a successor agency to be
responsible for retiring current redevelopment debt obligations in accordance
with existing payment schedules.
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This was part of a package of proposals to address a budget shortfall of $25.4 billion in
the FY 2011/12 California State Budget. The budget shortfall consists of an $8.2 billion
projected deficit for FY 2010/11 and a $17.2 billion gap between projected revenues
and spending in FY 2011112. The Governor's proposal includes $12.5 billion in budget
cuts, $12 billion in tax extensions and changes, and $1.9 billion in other solutions. The
Governor is calling for a statewide special election in June to extend taxes currently set
to expire for five more years.
On July 5, 1989, the City Council of the City of Moorpark ( "City ") adopted Ordinance
110 approving and adopting a redevelopment plan for the Moorpark Redevelopment
Project ( "Project "). Over the last 22 years, the Redevelopment Agency of the City of
Moorpark ( "Agency ") has, both unilaterally and through participation in joint
public /private partnerships, facilitated a number of successful projects and programs
aimed at economic revitalization, neighborhood revitalization, and affordable housing
production.
A list of the Agency's accomplishments is attached as Exhibit A. Key Agency
accomplishments include:
Government Facilities
• Civic Center complex — The Agency worked with the City to develop draft
plans for a new Civic Center to anchor the western end of the Downtown
Area within the provisions of the California Community Redevelopment
Law ( "CCRL ").
• New U.S. Post Office — The Agency was instrumental in bringing the new
Post Office to the downtown area by making Agency -owned land available
on a long -term, low -cost lease. The Agency also improved the parking lot
to serve the post office and downtown.
• High Street Fire Station — The Agency assembled a lot suitable for the
construction of a new fire station on High Street and traded properties with
Ventura County Fire District.
• Ruben Castro Human Services Center — The Agency is developing this
facility for the County of Ventura and various human service organizations
to provide non - emergency medical services and human services to low
income residents in the project area.
• Magnolia Street Park — The Agency assisted in the development of the
new. Magnolia Street Park directly behind the new fire station. The
Agency assisted in property acquisition and capital improvements.
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• Police Services Center — The Agency provided interim financing for the
land acquisition of the Moorpark Police Services Center and California
Highway Patrol office.
• Poindexter Park — The Agency acquired eight of the ten acres for
Poindexter Park and financed a portion of the construction.
• Downtown Park — The Agency has set aside funds to acquire the land and
construct a future downtown park similar to Magnolia Park.
Commercial Developments
• West High Street Development — The Agency removed deteriorated
structures in support of the development of Agency -owned property on
High Street between Moorpark Avenue and the MetroLink station.
• East High Street Development — The Agency commenced planning work
for the south side of High Street east of the MetroLink Station to Spring
Road. The Agency has acquired the High Street Fueling Station for
redevelopment purposes and in an effort to remove trucks off High Street.
• Moorpark Avenue Downtown Corridor Projects — The Agency has
engaged in land acquisition aimed at stimulating investment in the
Moorpark Avenue corridor. 347 Moorpark Avenue and 467 High Street
were acquired through this program and is now being marketed for
redevelopment.
• Aszkenazy Disposition and Development Agreement ( "DDA "). The
Agency has negotiated a DDA with Aszkenazy Development for the sale
of Agency owned property located at 192 High Street and construction of
80,000 square feet of retail and office space. The Agency has set aside
$350,000.00 to demolish existing structures on this property.
Job Creation
• Business Enhancement Program — The Agency implemented a business
enhancement program in cooperation with the Economic Development
Cooperative of Ventura County.
• Partnered with Creative Woodworks to retain the business in Moorpark
and to assist with its expansion.
• Business 911 Program —The Business 911 Program provides professional
services and assistance to businesses on a request basis. This program
is partly funded by the Agency.
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• AG Machining — The Agency assisted AG Machining to consolidate their
three building operation and relocate it to Moorpark bringing 167 new jobs.
Infrastructure Improvements
High Street Streetscape Improvement Project — The Agency funded the
design of streetscape improvements. The Agency has set aside
$1,150,000.00 for phase I including partial funding of a dedicated right turn
lane from north bound Moorpark Avenue to east bound High Street.
Infrastructure Projects Serving Downtown Area — The Agency funded the
planning and /or construction of a number of infrastructure improvement
projects in the downtown area, including High Street improvements,
Charles Street reconstruction, storm drain, parking lot improvements, park
improvements, and various street improvement projects totaling
$7,400,000.00.
Affordable Housing
• Affordable Housing — The Agency has facilitated the construction a total of
300 rental units restricted for low income families and assisted 56 families
to purchase their first home.
Future Affordable Housing Projects — The Agency is working with several
developers to provide affordable units and has acquired numerous parcels
throughout the project area that are ready to be developed into both rental
and ownership affordable units. Staff anticipates this effort will create an
additional 206 affordable units such as:
Charles Street Rental Project with the Area Housing Authority of
the County of Ventura.
2. Former fire station site on Moorpark Avenue.
3. Charles Street Condo Project.
4. Walnut Canyon Project
The Agency receives approximately $7,700,000.00 in tax increment each year. The
Agency pays other public agencies about $3,100,000.00 in annual payments pursuant
to pass through agreements with both taxing entities. The combined annual payment of
the 1999, 2001 and 2006 tax increment bond debt is $1,900,000.00. State law requires
the Agency to use 20% or $1,500,000.00 to preserve and create affordable housing
opportunities in the city. The Agency uses the remainder of the tax increment,
$1,200,000.00 to revitalize the downtown commercial area and neighborhoods and fund
operating costs.
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If the Agency is abolished, as Governor Brown is proposing, the effect to the City would
be staggering. Under the Governor's proposed budget, the State would take all of the
Agency's economic development and housing funds to balance its budget. Starting in
fiscal year 2012/13 and thereafter, the Agency's economic development and housing
funds would be split between the County of Ventura ( "County "), Moorpark Unified
School District ( "MUSD ") and the City. Staff estimates the City would receive an
additional $500,000.00 in property taxes and the remainder would go to the County and
MUSD. The City would lose $1,500,000.00 in housing and $1,200,000.00 in economic
development funds that are currently used each year to purchase dilapidated properties,
repair /maintain streets, build /rehabilitate houses, improve the High Street and Moorpark
Avenue corridor and provide for a higher quality of life for the downtown residents. The
City would also lose $616,000.00 in payments it receives from the Agency each year
through the Cost Allocation Plan.
The number of annual jobs created in the City would be significantly reduced with the
elimination of the Agency. The California Redevelopment Association hired Time
Structures, Inc. to study the impact of Fiscal Year 2006 -07 redevelopment agency
activities on the California Economy. The study revealed that redevelopment activities
created 300,000 jobs throughout the state of California in Fical Year 2006 -07. Of this
300,000 jobs, 253 jobs were created in the City through redevelopment spending.
For every $1 spent in the City it creates $7 in economic spin -off activity. The Agency
annually invests $2,700,000.00 into the downtown through economic development and
housing activities. Applying the $1 creates $7 theory, the Agency creates
$18,900,000.00 in annual economic activity in the City.
The Agency recently adopted the 2010 -14 Five Year Implementation Plan ( "Plan ") for
the Moorpark Redevelopment Project Area, This Plan outlines the goals and objectives
of the Agency for redevelopment spending over this time period. The four goals and
objectives of the Plan are:
Goal No. I: Encourage and increase economic development activities in
the Project Area
Objectives:
Provide resources for attracting new businesses and retaining and
assisting with the expansion of existing businesses in the Project
Area.
2. Provide assistance with land acquisition and relocation of existing
uses to support public and private development.
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Goal No. II: Make improvements to Project Area infrastructure and public
facilities which benefit the Project Area
Objectives:
1. Provide funding, as appropriate and feasible, for public facilities,
such as parking facilities, parks and recreation facilities,
landscaping and other amenities, which serve properties and
people in the Project Area.
2. Continue funding for infrastructure improvements in the public right -
of -way (including sewer, storm drain, water systems, and surface
improvements) which benefit the Project Area.
3. Reduce traffic congestion, install traffic signals as needed, improve
public safety, and reduce public parking deficiencies within the
Project Area.
4. Provide funding, as appropriate and feasible, for public service
facilities such as a library, senior center, human services and parks
and recreational facilities.
Goal No. III: Revitalize the Downtown Area
Objectives:
1. Complete redevelopment of Agency -owned properties on High
Street including 467 High Street and property on the south side of
High Street between the MetroLink lot and Moorpark Avenue.
2. Work with private developers to acquire and redevelop property on
the east end of High Street.
3. Install MetroLink Station wall, landscaping, and access
improvements.
4. Acquire land, if necessary, and construct new park and recreational
facilities in the Project Area.
5. Complete streetscape improvements along High Street and
Moorpark Avenue including: i) public and angle parking on High
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Street; ii) widening of Moorpark Avenue consistent with the
Circulation Element; and iii) enhancing public safety by installing
improvements such as lighted, decorative bollards delineating
vehicular and pedestrian zones as appropriate.
6. Expand Library.
7. Underwrite or finance and construct the Human Services Center on
a two -acre site north of the Police Services Center.
8. Acquire property and partner with private and non - profits
developers to provide a minimum of 40 new affordable housing
units in the Downtown Area, including both single family units and
multiple family units.
Goal No. IV: Increase, improve and preserve the quality of Low /Moderate
income housing throughout the project area and the City
Objectives:
1. Promote and participate in public /private partnerships with
non - profit and for profit developers and /or property owners to
build new housing units and /or rehabilitate existing rental units
for very-low and low- income households.
2. Develop and implement owner - occupied, revolving loan
program(s) to help low- and moderate - income households
purchase new or rehabilitated homes.
3. Work with property owners and the development community to
identify and acquire in -fill housing development parcels, and to
partner with private and non - profit entities to construct new
housing units for very low -, low -, and moderate - income
households on these parcels.
4. Work with the City to require new housing developments
outside of the Project Area to contribute financing and /or
inclusionary units intended for low- and moderate - income
households.
5. Provide additional opportunities for improving the Walnut
Canyon residential area north of Casey Road.
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If the Agency is eliminated, the City would need to fund the activities associated with the
goals and objectives in the Plan with general fund dollars or abandon them. The City
would also need to fund or eliminate the following Agency programs and services:
Economic Development Collaborative of Ventura County ("EDC -
VC") Membership ($3,000.00)
2. Manufacturing Layoff Aversion (Included in EDC -VC Membership)
3. Global Entrepreneur Training (GET) Trade Program (Included in
EDC -VC Membership)
4. Business Enhancement Program ($10,000.00)
5. Moorpark Chamber of Commerce Funding ($26,100.00)
6. Staff is City Liaison to Businesses (Staff Effort)
7. SCOUT Program Spending and Leakage Data ($12,000.00 starting
2011/12)
8. Downtown Fagade Improvement Loan Program starting in 2013/14
FY ($200,000.00)
9. Commercial Revolving Loan Fund planned for 2011/12 FY
($300,000.00)
10. Regional Defense Partnership (RDP -21) ($5,000.00)
11. Economic Forecast Sponsorship ($3,000.00)
12. California Association for Local Economic Development (Cal -ED)
Membership ($500.00)
13. Staff Salaries and Benefits of full time equivalent positions
($542,947.00)
a. 50% of Assistant City Manager ($136,448.00)
b. 100% of Redevelopment Manager ($170,893.00)
C. 15% of Management Analyst (code enforcement)
($19,104.00)
d. 75% of Management Analyst (housing) ($81,371.00)
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e. 40% of Code Enforcement Officer ($41,185.00)
f. 100% of Administrative Secretary ($78,114.00)
g. 100% of Clerical Aid /Box Office Cashier ($1,644.00)
h. 100% of Clerical Aid /Box Office Cashier ($9,765.00)
i. 100% of Agency Board Members ($,4,423.00)
14. Commercial /Residential Development at 347 Moorpark Avenue
(Staff Effort)
15. Walnut Canyon Affordable Housing Project (Staff Effort)
16. High Street Streetscape Project ($4,000,000.00)
17. Commercial Development at 467 High Street (Staff Effort)
18. HDL Sales Tax Reporting ($5,000.00)
19. Park Maintenance Assessment of Agency Properties ($3,000.00)
20. High Street Arts Center ($130,000.00) (includes $60,000.00 for
General Manager)
21. High Street Fueling Station Demolition ($75,000.00 - $100,000.00)
22. Everett Street (former fire station) Affordable Housing Project (Staff
Effort)
23. Charles Street Condo Project (Staff Effort)
24. Rehabilitation Assistance Program (Staff Effort)
25. Mobile Home Rehabilitation Assistance Program (Staff Effort)
26. Former Caltran's Yard Commercial Project (Staff Effort)
27. Metrolink Second Access ($300,000.00)
28. Property Acquisition, Relocation and Demolition Program for
affordable housing and economic development ($1,000,000.00 -
$2,000,000.00)
29. Low /Mod Cost Allocation Plan ($151,000.00)
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30. Tax Increment Cost Allocation Plan ($465,000.00)
31. Moorpark Avenue Widening Project ($674,000.00)
32. Millard Storm Drain Project ($195,000.00)
33. Railroad Crossing Improvements at Spring Road ($190,000.00)
34. Future Street Improvements in Downtown Commercial Area and
Neighborhoods (Various)
35. Conversion of North Metrolink Parking Lot to Downtown Parking
($315,000.00)
36. Relocation of the Metrolink Holdover Lot ($2,000,000.00 -
$3, 000,000.00)
37. Affordable Housing Monitoring (Staff Effort)
38. Affordable Housing Bond Monitoring for Vintage Crest ($5,200.00)
FISCAL IMPACT
If the Agency is abolished by Governor Brown, the City would receive $500,000.00 in
new revenue as property tax. However, the City would lose $616,000.00 each year in
payments to the General Fund from the Agency through the Cost Allocation Plan and
would need to find alternative funding for the $1,374,000.00 of Agency financed public
improvement projects through 2015/16. The City would also need to fund $543,000.00
for staffing if it desires to keep economic development, code enforcement and
affordable housing program activities.
The City would also lose all housing and economic development funds used each year
by the Agency to assist local businesses and improve the quality of life for its residents.
Over the remainder of the Moorpark Redevelopment Plan and net of the new property
tax dollars the City would receive if the Agency was abolished (nineteen years
remaining), the projected loss of gross tax increment is estimated to be
$174,941,062.00 of which $65,602,898.00 (assumes a annual increase of 2 %) could
have been used for housing and economic development activities.
The business community would also be significantly affected by the elimination of the
Agency. The Agency would no longer create construction related jobs each year, such
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as architects, engineers, project managers, financial institutions, escrow companies,
insurance providers, bonding companies, skilled labor and general labors.
The economy would also lose over $18,900,000.00 each year in economic activity in
spin -off activities due to Agency spending.
STAFF RECOMMENDATION
Receive and file report and oppose the abolishment of redevelopment agencies.
Exhibit A — List of Accomplishments
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EXHIBIT A
Summary of Redevelopment Agency
Accomplishments 1989 -2010
• Acquisition of High Street Property between Moorpark
Ave and Metrolink Property - $800,000
• Lease of the High Street Property to businesses -
Maria's, BBQ Joint, and One More Time
• Established business assistance program in
cooperation with Economic Development Collaborative
of Ventura County. Businesses assisted - 19 over 5 -
year period - $50,000
• Acquisition of 661 Moorpark Avenue for lease unit and
adjacent property for Public Works /Parks Department
Corporation Yard - $253,909
• Partial funding for Poindexter Park development -
$20,000
• Acquisition of land for Poindexter Park - $600,000
• Acquisition of land for Mission Bell Plaza, Phase II with
funds being repaid to the Agency - $3,500,000
• Acquisition of Gisler Field and Disposition and
Development Agreement with Cabrillo Economic
Development Corporation for 15 units of affordable
housing with land costs repaid to the Agency as units
were sold - $1,000,000
• Los Angeles Avenue wall and landscaping - $400,000
• Spring Road Storm Drain Study and improvements -
$900, 000
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• Moorpark Avenue Storm Drain Study and
Improvements - $750,000 (Objective 11 -2)
• High Street Hardscape and drainage Improvements -
$300,000
• Flory Avenue Hardscape Improvements - $200,000
• Charles Street Reconstruction - $300,000
• Miscellaneous curb, gutter and sidewalk improvements
- Charles Street - $200,000
• Lease of private property for CHP Offices on Moorpark
Avenue with funds reimbursed by the State.
• Prepared Joint City /Agency Development & Financing
Plan for site acquisition and construction of public
facilities downtown (Police Facility and Corporation
Yard and Civic Center expansion).
• Purchased property at 203/213 Los Angeles Avenue
for affordable housing - $360,000
• Constructed 3 affordable units as part of Colmer
Development on 203/213 Los Angeles Avenue -
$382,500
• Acquired Moorpark Mobile Home Park for Civic Center
and relocated 28 households - $11900,000
• Provided improvement grant to Catholic Charities for
temporary building - $28,300
• Acquired property on High Street for future Fire Station
in exchange for old station property on Moorpark
Avenue for future affordable housing development -
$220, 000
• Acquired commercial property at 798 Moorpark Avenue
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for affordable housing development - $210,000
• Acquired portion of 7.5 acre site on Spring Road for
Police Services Center and Human Services Center.
Redevelopment Agency Share - $1,446,825;
Community Development Block Grant share - $653,175
• Acquired property on Fitch Road for future Public
Works /Parks Department Corporation Yard and
commercial redevelopment - $990,000 Remaining
parcel sold for $400,000 for private development.
• Provided loan for private acquisition of 11/17 High
Street which was repaid upon resale - $400,000
• Provided loan for privately financed renovation of High
Street Arts Center which was repaid - $350,000
• Acquired 284 Charles Street via tax default ($15,000)
and built replacement dwelling unit for family displaced
by fire station project - $295,000
• Acquired site for Magnolia Street Park - $55,000
• Acquired High Street Arts Center (HSAC) at 45 High
Street - $11250,000
• Replaced outdated or inoperable sound system and
lighting control system and movie projection equipment
at HSAC - $60,000
• Operating HSAC now in third season of performances.
$1501000 per season and underwriting
expense /revenue margin for productions concessions
and rentals.
• Rehabilitation programs. Assisted 22 homes -
$177,455 from City Housing and CalHome Grant
Funds
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• Acquired 47 -51 High Street for future Civic Center -
$357,000 (including relocation costs)
• Recruited Harley Davidson dealership to Moorpark
(approximate yearly sales tax contribution $100,000)
• Acquired 81 First Street for affordable housing unit -
$215,000 Constructed housing unit - $348,950
• Acquired commercial property at 347 Moorpark Avenue
for redevelopment - $635,000
• Acquired commercial property at 467 High Street for
redevelopment - $451,439
• Acquired 765 Walnut Street for future affordable
housing development - $406,000
• Acquired replacement site on Princeton Avenue for
fueling station on High Street - $575,000
• Financed portion of Flinn Road realignment and traffic
signal - $459,200
• Financed construction costs for Magnolia Park -
$649,992
• Acquired 1095 and 1113 Walnut Canyon Road for
affordable housing redevelopment - $700,000.
• Removed grain silos and mill at 192 High Street -
$38,000
• Funded landscaping improvements at Los Angeles
Avenue and Spring Road to enhance appearance of
walls installed by private developer - $5,000
• Acquired 450, 460, and 484 Charles Street for
affordable housing redevelopment - $1,387,080
• Relocation assistance provided for tenants of 450
Charles Street - $39,177
• Acquired 1063, 1073, 1123, 1293, and 1331 Walnut
Canyon for affordable housing redevelopment -
$1,859,315
• Acquired surplus parcel no. DD2 -03 -01 on Los Angeles
Avenue from Cal Trans for future commercial
development - $1,854,000
• Acquired 33 High Street and currently have tenants
leasing the second floor office space - $950,000 /
receiving $1,189 / month rent
• Acquired 250 Los Angeles Avenue with (Los Angeles
Area of Contribution funds) and leased to a family -
receiving $1,550 / month rent
• Acquired 780 Walnut Street for affordable housing
redevelopment - $250,895 Leased property for $1,000
per month.
• Relocation assistance provided for fueling facility -
$57,254
• Relocation assistance provided for tenants of 1113
Walnut Canyon - $40,122
• Staff coordinated demolition and site clearances at
460, 484 Charles Street, 1095, 1113, 1293 and 1331
Walnut Canyon - $73,948
• Staff coordinated demolition, site clearance and
asbestos removal at 765 Walnut Street, 81 Charles
Street, and the old fire station barracks - $621000
• Staff is administering Mobilehome Rehabilitation
Program. Five homes are being assisted - $100,000 in
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CalHome Reuse Funds
• Administration of seven rounds of the First Time
Homebuyer Program. 62 families placed in affordable
units to date.
• Staff coordinated demolition and site clearance at 661
Moorpark Avenue and 1123 Walnut Canyon Road -
$26,423
• Purchased property at 1083 Walnut Canyon Road for
future affordable housing development - $703,202
• Purchased property and relocated tenants at 112 First
Street for future affordable housing development -
$316,124
• Purchased property at 124 First Street for future
affordable housing development - $303,089
• Financed High Street parking lot and flood channel
improvements associated with Post Office project -
$1,9001000
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