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HomeMy WebLinkAbout2009/12/15 Item 1 DRAFT MINUTES OF A JOINT WORKSHOP OF THE REDEVELOPMENT AGENCY AND THE CHULA VISTA REDEVELOPMENT CORPORATION OF THE CITY OF CHULA VISTA August 6, 2009 4:00 p.m. A Workshop of the Redevelopment Agency and the Chula Vista Redevelopment Corporation of the City of Chula Vista was called to order at 4:05 p.m. in the Council Chambers, located in City Hall, 276 Fourth A venue, Chula Vista, California. ROLL CALL: PRESENT: Redevelopment Agency Members Bensoussan, Ramirez, and Chair Cox Chula Vista Redevelopment Corporation Directors Desrochers, Flores, Salas, and Chair Lewis ABSENT: Redevelopment Agency Members Castaneda and McCann (Military Leave) Chula Vista Redevelopment Corporation Directors Munoz, Paul, Reyes ALSO PRESENT: Executive Director Sandoval, Deputy City Attorney Miller, City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS There were none. WORKSHOP 1. REDEVELOPMENT 101 PRESENTATION Deputy City Manager/Development Services Director Halbert introduced Chula Vista Redevelopment Corporation (CVRC) Director Lewis, who gave an overview of the history and role of the CVRC. Deputy City Manager/Development Services Director Halbert then introduced John Shirey, Executive Director, California Redevelopment Association. Mr. Shirey presented a perspective on what redevelopment could do for a community to assist with the elimination of blight in designated areas, and with achieving desired development, reconstruction, and rehabilitation. He stated that redevelopment provided for affordable housing, community facilities and infrastructure, and jobs. He then explained the uses of redevelopment funds. Workshop Minutes - RDA/CYRC Page I 1-1 August 6, 2009 DRAFT REDEVELOPMENT 101 PRESENTATION (Continued) Discussion ensued regarding various aspects of redevelopment, as well as the impact that the state budget takeaways had on agencies' abilities to support economic development. Regarding the possibility of extending timelines for redevelopment projects, Mr. Shirey stated there was a provision in existing law that allowed project areas to be extended by one year, and ten years if certain findings were made. There was further discussion regarding the advantages and disadvantages of excluding residential areas from redevelopment project areas. 2. REDEVELOPMENT AGENCY FINANCIALS PRESENTATION Deputy City Manager/Development Services Director Halbert introduced Susan Harrell, Principal, Harrell and Company Advisors, who provided an overview of redevelopment financing. She explained the cycle for financing, from issuing debt to finance projects to repaying the debt with the tax increment generated by the project. She explained the procedures used to establish a project area, and how the ta'\: increment increases revenue to the agency without implementing new taxes or raising existing ta'\:es. She stated that agencies must have debt to repay in order to receive tax increment. She also spoke about Chula Vista's redevelopment plans, stating that Chula Vista had formed six project areas, including the Bayfront, established in 1974 and amended in 1998; Town Centre, established in 1976; Town Centre II, established in 1978 and amended in 1998; Otay Valley Road, established in 1983; Southwest, established in 1990 and amended in 1991; and the merged area, established in 2004. She explained that the Bayfront and Town Centre project areas and the Town Centre II, Otay Valley Road and Southwest project areas had merged. Regarding the potential for extending timelines for redevelopment projects through mergers, Ms. Harrell stated that a merger in and of itself would not change the plan limits, but would need to go through the plan amendment process, which would require any increment generated in the 10- year extension to be spent on parcels identified during the extension process as remaining blight, and the housing set-aside requirement would go from 20% to 30% in accordance with current redevelopment law. Regarding the Agency's total bonded indebtedness in relationship to its indebtedness to the City, and the capacity to issue bonds, Ms. Harrell stated that there was about $42 million in bonded indebtedness and about $23 million to the City. She stated that factors that would affect issuance of bonds included the status of Education Revenue Augmentation Fund (ERAF), property assessments, and increased interest rates for ta'\: allocation bonds. Discussion ensued regarding ideas for successful types of projects, and for the use of ta'\: increment revenue. Workshop Minutes - RDA/CVRC - Page 2 1-2 August 6, 2009 DRAFT REDEVELOPMENT AGENCY FINANCIALS PRESENTATION (Continued) At 6:51 p.m., Chair Cox recessed the meeting. The meeting reconvened at 7:05 p.m. with all members present. 3. PROPOSED FIVE YEAR REDEVELOPMENT IMPLEMENT A nON PLAN The Redevelopment Agency is required to adopt a five-year redevelopment implementation plan by December 31, 2009, for the Merged Chula Vista Redevelopment Project Area and the Merged Bayfront/Town Center I Redevelopment Project Area for the period covering 2010-2014. The purpose of the workshop is to provide information regarding the community input process, review components of the proposed plan, and receive input from the Redevelopment Agency and Redevelopment Corporation. (Development Services Dircctor) Staffrecommendation: Hear the presentation and provide input on the Implementation Plan. Deputy City ManagerlDevelopment Services Director Halbert introduced the Five-Year Implementation Plan and spoke about opportunities to establish goals and objectives within the redevelopment areas, maximize investment and public infrastructure, and continue with affordable housing projects and the use of returns on investment to create economic opportunities. Principal Project Coordinator Hines provided the history and legal authority for redevelopment agencies, and the purpose of a five-year implementation plan. Senior Project Coordinator Do presented the proposed 2010-2014 implementation plan process that included community engagement, establishment of a working group, and RDAlCVRC joint workshop. She presented staffs proposed list of projects including the bayfront environmental impact report certification, public infrastructure improvemenis, and development agreement with Pacifica Companies. Deputy City Manager/Development Services Director Halbert stated that recent reductions in Redevelopment staffing had benefited the Agency by placing the savings into projects, infrastructure, and repayment to the General Fund 01'$7 million. Theresa Acerro, Chula Vista resident, spoke in support of the expansion of the auto park dealerships, as long as large sums of money would not be expended to do so. She suggested that the redevelopment should help existing businesses thrive, and stated there was a need for infrastructure projects in the southwest. Mitchell Thompson, Chula Vista resident, spoke about the feasibility of placing residential properties in to the redevelopment zone, stating that it would help to attract retail. He suggested that redevelopment monies be used for for-sale projects and improvements to multiple family units. He also suggested that the Agency do everything possible to increase the average incomes on the west side. Workshop Minutes - RDA/CYRC - Page 3 1-3 August 6, 2009 DRAFT PROPOSED FIVE YEAR REDEVELOPMENT IMPLEMENTA nON PLAN (Continued) Deputy City Manager/Development Services Director Halbert stated that the proposed list of projects was not anticipated to rely solely on redevelopment funds. He added that through streamlining efforts, staff was moving forward with changes to the Code to permit the expansion of conforming uses and structures. In response to a question from Chair Cox, Deputy City Manager/Development Services Director Halbert stated that the H Street study would focus on creating a complete street, by embracing pedestrian use and engaging with the adjacent properties. Discussion ensued regarding potential projects, including an expanded auto park and public infrastructure. Agency Member Ramirez stated there was a need for effective public outreach on future redevelopment, and that staff should prioritize environmental justice. Frank Zimmerly, representing the Northwest Civic Association, stated that he was a member of the working group, and was sure their opinions had been heard and projects would not be rubber stamped. Agency Member Bensoussan spoke in support of moving forward with a business park concept, but not at the expense of any existing businesses that provided benefits to the economy. She stated there was a need to identify what would be a good fit for the City. She suggested prioritizing marketing. She suggested that staff focus on job creation when projects were considered. She also recommended expansion of the southwest enterprise zone, and looking at the feasibility of including residential in redevelopment zones. She suggested placing emphasis on outreach, and suggested including the Nature Center in the overall redevelopment plan. Chair Cox commented that future residential development on the bayfront would attract business to the Chula Vista Center. She stated that this was the time to unleash the extraordinary talent that existed with CVRC members, and suggested making use of every opportunity for redevelopment. Director Desrochers stated he would like to see the inclusion of proposed redevelopment of parking lots on Third Avenue. With respect to the residential developments along Main Street, he suggested using the 20% set-aside or HOME funds combined with a rehabilitation/code enforcement-type program to improve streets and sidewalks for the area. He stated that the Energy Way industrial park should remain for wrecking yards. Chair Lewis suggested including the public and the CVRC in the planning process for projects. Regarding the prioritization of streetscapes as a project in and of itself, he stated that the streetscape should be part of a redevelopment project and partly funded by the private sector. He suggested that staff communicate with businesses to find out where they would like to see a business park located, and that it should benefit business owners and the community. He spoke in favor of attracting industrial businesses. He stated there was a need for the community to benefit directly and indirectly from new development in the City. He then encouraged the CVRC to improve outreach to the community, investors, and developers. Workshop Minutes - RDA/CYRC - Page 4 1-4 August 6. 2009 DRAI'T PROPOSED FIVE YEAR REDEVELOPMENT IMPLEMENTATION PLAN (Continued) Director Flores spoke in support of continued meetings between staff and the community on future projects. He suggested including sustainable projects, such as solar panel integration. He also spoke in support of mixed use in business corridors, and for citizen outreach and involvement. Director Salas spoke in favor of preserving housing stock on the west side and constructing unique affordable housing to attract young business professionals to the area. He recommended taking advantage of the expertise within the CVRC. Agency Member Ramirez suggested using the financial models, demonstrating that the desired direction is responsive to the public, and continuing community engagement. He also suggested that the CVRC look at the history and intent of the Scripps Redevelopment Plan to see if objectives were close to being met, and to look at how the Gateway project had performed and how that could relate to the future. Regarding tax increment money that had been spent on stafting, he recommended that staff acknowledge successes and failures, and talk about how things could be done better in the future. ADJOURNMENT At 8:47 p.m., Chair Cox adjourned the CVRC to its next Regular Meeting, and RDA to its next Regular Meeting. J~ ;( ~jJwb Donna R. Norris, City Clerk Workshop Minutes - RDA/CYRC - Page 5 1-5 August 6, 2009