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HomeMy WebLinkAbout2007-12 Capital Outlay FundsRESOLUTION O. 2007-12 WHEREAS, 1. The Ukiah Redevelopment Agency ("Agency") maintains a Capital Outlay Fund for the benefit of the Mendocino County Office of Education ("MCOE"), pursuant to the 1990 agreement between the MCOE and the Agency ("the Agreement"); and 2. The Capital Outlay Fund consists of the tax increment revenues to the Agency produced by the annual 2% increase in the assessed value of real property within the Agency's Redevelopment Project Area, which would have been received by MCOE, if the Agency and Project Area had not been established; and 3. Pursuant to the Agreement, MCOE may request the City Council to approve the disbursement of funds in the Capital Outlay Fund for property acquisition and capital projects proposed by MCOE that comply with Health and Safety Code Sections 33445, 33678, 33679 and other provisions of the Community Redevelopment Law; and 4. Before the City Council may approve a disbursement from the Capital Outlay Fund requested by MCOE, the City Council must conduct a public hearing in compliance with Health and Safety Code Section 33679; and 5. Health and Safety Code Section 33679 requires notice of the public hearing to be published for two successive weeks prior to the hearing in a newspaper of general circulation in the City and a summary of the proposal to be available for public inspection during that two week period; and 6. Notice has been published as required by law and the Summary, a true and correct copy of which is attached hereto as Exhibit A, was available for inspection during the required period; and 7. Health and Safety Code Section 33679 requires the City Council to determine the total funds to be disbursed from the fund and to make specified findings before it can approve the disbursement of said funds; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The total taxes to be disbursed on behalf of MCOE from the Capital Outlay Fund for the acquisition of land and construction of improvements is as follows: a. $ 174, 667 for land purchase. b. 5,000 closing cost (estimated). C. 1,900,000 approximate construction cost $2,079,667 Total 2. Based on the facts as set forth in the attached Exhibit A, the City Council hereby finds: a. The buildings are of benefit to the project area and contribute to the elimination of blight. b. There are no other reasonable means of financing the acquisition of land or the construction of the buildings available to the community. 3. The distribution as requested by MCOE is hereby approved. 4. The Agreement for Purchase and Sale of Real Property between the City of Ukiah and the Mendocino County Office of Education presented to the City Council for approval at its meeting on February 7, 2007, is hereby approved and the City Manager is authorized to sign the agreement on behalf of the City, subject to the City Manager's final approval of Exhibit A to the Agreement: PASSED AND ADOPTED by the Ukiah City Council on March 21, 20007 by the following roll call vote: AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin NOES: None ABSTAIN: None ABSENT: None 1 3 fl Mari Rodin, Mayor ATTEST: Gail P2 EXHIBIT A TO RESOLUTION (ATTACHMENT 3 TO ASR) SUMMARY OF PROPOSED EXPENDITURE UKIAH REDEVELOPMENT AGENCY ENDOCIO COUNTY OFFICE OF EDUCATION CAPITAL OUTLAY FUND The City of Ukiah created a redevelopment agency ("Agency"), adopted a redevelopment plan, and established a redevelopment project area in 1990. The Agency uses a portion of property tax revenues to undertake projects and finance improvements to reduce or eliminate blighted conditions in the redevelopment project area. The primary source of income to a redevelopment agency is "tax increment," which is the portion of ad valorem real property tax that results from the increase in assessed value of real property in the Agency's redevelopment project area over the "base year," which is the year the redevelopment plan is approved. The increment is composed of two parts: the annual 2% increase authorized by Cal. Revenue and Taxation Code Section 110, and the increase resulting from reassessment of real property after a sale or after the construction of improvements. In 1990, when the City of Ukiah adopted its redevelopment plan and created the Agency, it entered an agreement ("MCOE Agreement") with the Mendocino County Office of Education ("MCOE"), among other local government agencies. The agreement with MCOE requires the Agency to pay into a Capital Outlay Fund for MCOE the 2% of property tax increment above the 1994 base year that goes to the Agency. The agreement authorizes MCOE to request the City Council to approve the disbursement of funds in the Capital Outlay Fund for capital improvements proposed by MCOE that comply with Health and Safety Code Sections 33445, 33678, 33679 and other provisions of the Community Redevelopment Law. Under the agreement and the Community Redevelopment Law, the City Council must conduct a public hearing in compliance with Health and Safety Code Section 33679 before it can approve the disbursement of funds in the Capital Outlay Fund for the acquisition of land or the construction of buildings to be owned by MCOE. MCOE has requested that the funds currently on deposit in its Capital Outlay Fund and all future funds to be deposited during the remaining term of the Ukiah Development Plan be disbursed to MCOE to pay for the cost of acquiring real property from the City of Ukiah upon which MCOE has constructed the Ukiah High On-Campus Community School and the Ukiah High Young Parent Program/CaISAFE at 1100 Low Gap Road and to reimburse MCOE for the cost of constructing the school and landscaping the school grounds. Under the MCOE Agreement, MCOE currently leases this property from the City of Ukiah for $1 per year. The City has agreed to sell the property to MCOE for $174,667. Prior to conducting its public hearing on this request, the City is required to make available for two weeks a summary: The summary must state the total amount of taxes proposed to be used for the acquisition of land and the construction of buildings and other improvements, and it must include the facts supporting the findings which are required by Health & Safety Code §33445. Those findings are as follows: (1) That the buildings, facilities, structures, or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located. (2) That no other reasonable means of financing the buildings, facilities, structures, or other improvements, are available to the community. (3) That the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements will assist in the elimination of one or more blighting conditions inside the project. 1. Estimate of taxes proposed to pay for land and construction of buildings. a. $ 174, 667 for land purchase. b. 5,000 closing cost (estimated). C. 1,900,000 approximate construction cost $2,079,667 Total 2. Facts supporting findings under Health & Safety Code Section 33445. a. The buildings are of benefit to the project area and contribute to the elimination of blight. i. The Community School Program serves probation referred, juvenile court referred, expelled, and habitual truants. The community school also serves pregnant and parenting teens and their children through the Cal SAFE program. Collectively, these programs will be referred to as CSF. Their mission is meet the social, emotional, academic, vocational and creative needs of "at-risk" students in Mendocino County. They provide these services in an environment that honors and respects each student. ii. The CSF is located across Low Gap Road from the Ukiah High School. iii. The current enrollment in CSF, grades 8-12, is 163 students. Of these, a significant number are Hispanic (56) and Native American (25). Students attending the CSF have shown steady improvement, year-to-year, on the standardized state tests, including the California Achievement Test. iv. Minors in juvenile probation, subject to the jurisdiction of the juvenile court, particularly those who have committed acts which would constitute a crime, if committed by an adult, or who are in danger of becoming delinquent, as well as habitual truants and students expelled from school commit acts of vandalism and other crimes and join gangs, all of which contributes to blighted conditions within the Ukiah Redevelopment Project Area. v. The CSF provides educational opportunities, counseling and other services which address the needs of these "at risk" youth, and thereby contribute to the reduction of blighted conditions in the project area. b. There are no other reasonable means of financing the buildings available to the community. i. According to MCOE, it lacks the means to finance the purchase of the land or the construction of the buildings, comprising the CSF. ii. According to MCOE, the funds it advanced to construct the buildings must be restored from the Capital Outlay Fund. iii. The use of Capital Outlay Funds in compliance with the request of the school district for which they have been set aside is consistent with the implementation plan adopted by the Agency pursuant to Health & Safety Code §33490. February 2007 Ukiah Redevelopment Agency