HomeMy WebLinkAboutAgenda Statement 1987/04/07 Item 5 COUNCIL AGENDA STATEMENT
Item 5
/a/g3 Meeting Date 4/7/87
ITEM TITLE: Resolution ZIt' ' Acknowledging receipt of a Resolution of
Redevelopment Agency relating to the proposed Amended Town
Centre II Redevelopment Plan, consenting to hold a Joint
Special Public Hearing, setting a date for such hearing and
providing notice thereof
SUBMITTED BY: Community Development Director
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
The next step in the amendment of the Town Centre II Redevelopment Project to
authorize the Agency to collect tax increments from the Redevelopment Project
Area is for the City Council to accept the Agency' s Final Report on the
proposed plan amendment and call for a joint public hearing on the
Redevelopment Plan and Final EIR. The public hearing may be held at least 30
days following the Council ' s request and public notification. The Agency' s
Final Report to the Council has been submitted under a separate cover.
Approval of this item is subject to approval of Item No. 2 on the
Redevelopment Agency agenda this evening.
RECOMMENDATION: That the City Council adopt the resolution acknowledging
receipt of a Resolution of Redevelopment Agency relating to the proposed
Amended Town Centre II Redevelopment Plan, consenting to hold a Joint Special
Public Hearing setting a date for such hearing and providing notice thereof.
BOARDS/COMMISSIONS RECOMMENDATION: The Redevelopment Agency, at their
meeting of April 7, 1987, submitted the Agency's Report on the Amended Town
Centre II Redevelopment Plan to the City Council for review and requested that
the Council call for a joint public hearing to consider the Amended
Redevelopment Plan and Final EIR.
DISCUSSION:
In accordance with State law, the City Council is requested to accept the
Final Report on the proposed plan change from the Redevelopment Agency and
call for a joint public hearing on the Amended Redevelopment Plan and Final
EIR. The joint public hearing is proposed to be held at the May 7, 1987,
Agency meeting. Following the hearing, the Council and the Agency may make
certain findings and approve the Amended Redevelopment Plan. If approved, the
plan will go into effect following a 60-day appeal period.
Page 2, Item 5
Meeting Date 4/7/87
The financing plan and the DDA for the expansion and renovation of the Chula
Vista Shopping Center is predicated, in part, upon the Agency' s ability to
collect tax increments to repay the Agency' s portion of the capital costs for
this project. Even if the Homart project does not proceed, the Agency' s
ability to negotiate with other developers will be substantially enhanced with
the ability to use tax increments to assist in the financing of improvements
to the center. Finally, the ability to collect tax increments will give the
Agency the means to repay City funds which have been loaned to the Agency for
administration of Town Centre II Project activities.
FISCAL IMPACT: Financial analysis of the proposed expansion and renovation
of the Chula Vista Shopping Center indicates that property tax revenues would
increase from their current level of $172,000 to $493,000 in the third year of
operation (1991 ). Of the $172,000 in base (1%) property tax revenues,
approximately $32,000 or 18% is received by the City of Chula Vista. With
implementation of the project and approval of the Amended Redevelopment Plan
to allow the Agency to collect tax increments, the City would continue to
collect the $32,000 in property taxes a year. However, the Agency would have
the ability to collect 100% of the property tax increments accruing from the
project area for approximately 25 years (pursuant to concurrence of the County
of San Diego).
Anticipated increase in assessed valuation and projected tax increments
accruing from the renovation of the shopping center appear in Exhibit "A."
Note that the base year for computing tax increments is FY 1978-79 as allowed
by State law.
WPC 2795H
y the City Council of
Chula Vista, California
Day