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HomeMy WebLinkAboutAgenda Statement 1986/12/16 Item 07COUNCIL AGENDA STATEMENT Item ~/ Meeting Date 12/16/86 ITEM TITLE: Resolution ~.Z ~' 7 7 Designating an amended survey area for redevelopment consideration for the Town Centre II Redevelopment Project Area and designating staff, the Planning Commission and the Redevelopment Agency to conduct the necessary public hearings and prepare the necessary reports for consideration and adoption of an amended Town Centre II Redevelopment Project Area and Plan SUBMITTED BY: Community Development Director --~ REVIEWED BY: City Manager `(4/5ths Vote: Yes No X ) An amendment to the Town Centre II Redevelopment Project to allow the Agency to collect tax increments is currently in process. At the time of initiation of this proposed amendment, the Council was advised that a second amendment would be proposed for the purpose of changing the Project boundaries to include certain public and private properties which are expected to be redeveloped in the near future. Inclusion of these properties will enable them to be redeveloped under the Community Redevelopment Law and allow the City and the School District to take advantage of tax increments from anticipated projects. The first step in expansion of the boundaries is to approve an expanded survey area for the Town Centre II Project Area. RECOMMENDATION: That the Council adopt the resolution expanding the survey area for Town Centre II Redevelopment Project Area and directing staff, the Planning Commission and the Redevelopment Agency to conduct the necessary public hearings and prepare the necessary reports for consideration and adoption of an amended Town Centre II Redevelopment Project Area and Plan. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The original survey area for downtown redevelopment was approved in 1973. This area included all of the properties west of Second Avenue to the bay between the northerly and southerly boundaries of the City at that time. The proposed amendment seeks to reaffirm the original survey area and expand this area to include properties which have been added to the City since 1973. These properties would include the recent Montgomery/Castle Park annexation. In this manner, the Sweetwater High School District headquarters on Fifth Avenue as well as other district properties may be reviewed for possible redevelopment. The District has requested that the City consider such an undertaking, thus the establishment of a survey area is the first step in the process. Page 2, Item ~ Meeting Date-T2'7T~/$6 The establishment of a survey area does not conflict with the City policy of not instituting a redevelopment project in the Montgomery area for at least four years after annexation. A survey area would only be useful in studying possible redevelopment sites and provide the opportunity to discuss the issues with various groups such as the Montgomery Planning Group, the City Planning Commission and the Project Area Committee. The proposed, expanded survey area would include all properties located west of Second Avenue and Banner Street, east of the City's westerly corporate boundary, south of the City's northerly corporate boundary, and north of the City's southerly corporate boundary. Properties within the Bayfront and Town Centre I Area Projects are excluded from the proposed survey area. In accordance with California Health and Safety Codes, it is necessary to expand the survey area to incorporate all of those areas to be studied for possible expansion of a project area. It is therefore recommended that the Council take appropriate action at this time and direct the Planning Commission and Redevelopment Agency to undertake the necessary studies, hearings and other procedural steps necessary. FISCAL IMPACT: Currently, a redevelopment plan amendment is in process to give the Agency authority to collect tax increments within the Town Centre II project area. These funds will be used to finance public improvements associated with the redevelopment of the Shopping Center. The proposed expansion will allow the City to collect additional tax increments accruing from redevelopment of City, School District and private properties. The current tax increments accruing from the project area, anticipating approval of the amendment to collect tax increments, are estimated at approximately $40,000 per year if no further redevelopment takes place. If the }iomart development proposal proceeds, an additional $150,000 in tax increment may be received. Redevelopment of additional sites proposed to be incorporated within the expanded boundaries of the redevelopment project area, including the City corporation yard and the current Sweetwater Union High School District headquarters, could conceivably double this increment. These revenues would support a bond issue of approximately $4 million for the provision of public improvements necessary for redevelopment of the Shopping Center and related areas. WPC 259?_H 9 1~y~e Cit Ceunci Y I of Chula Vista, California Dated ~~~ ~~`