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HomeMy WebLinkAbout2011-22 Ukiah Unified Ed Resource Office Capital OutlayRESOLUTION 2011- 22 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH, CALIFORNIA, MAKING THE FINDINGS REQUIRED BY SECTION 33445 OF THE CALIFORNIA REDEVELOPMENT LAW; DETERMINING THE NEW UKIAH UNIFIED SCHOOL DISTRICT ADMINISTRATION AND EDUCATION RESOURCES OFFICE PROJECT IS OF BENEFIT TO THE UKIAH REDEVELOPMENT PROJECT AREA; AND AUTHORIZING THE RELEASE OF FUNDS FROM THE DISTRICT'S CAPITAL OUTLAY FUND FOR THE PROJECT WHEREAS, 1. The Ukiah Redevelopment Agency (the "Agency") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California (the "Law"), including the power to expend funds for public improvements for the benefit of the Ukiah Redevelopment Project Area ("Project Area"); and 2. The City of Ukiah ("City") is the legislative body for the community in which the Project Area is located and pursuant to Health & Safety Code Section 33445 is required to consent to payments to be made by its Agency for capital improvements; and 3. The Ukiah Redevelopment Plan adopted on November 15, 1989 provides for the funding of public improvements within the Project Area; and 4. The primary source of income to the 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 110.1(f) ("Inflation Adjustment"), and the increase resulting from reassessment of real property after a sale or after the construction of improvements; and 5. Under a 1990 agreement with Ukiah Unified School District (District), the Ukiah Redevelopment Agency maintains a Capital Outlay Fund for the benefit of the District. Each year after calendar year 1990, also called "the Base Year," the Agency credits the fund with an amount of money equal to the increases in the assessed value of the taxable property in the Agency's redevelopment project area above the sum of the Base Year Roll resulting from the Inflation Adjustment which would have been calculated and paid to District annually if the redevelopment project area had not been established; and 6. The District may request in accordance with the 1990 agreement payments from the Capital Outlay Fund for projects, including land acquisition and renovation and/or construction of facilities; and 7. The City approved Resolution 2010-13 on March 17, 2010, approving the release of funds in the amount of $3 million for the Ukiah Unified School District Administration and Education Resources Office Project ("District Administration Project") at 925 North State Street; and 8. The District has since selected a new location for the District Administration Project due to concerns about density and has submitted a new request (included in Exhibit A) to change the project location; and 9. The new site for the District Administration Project is located within the Project Area at 511 Orchard Avenue and will be owned by the Ukiah Unified School District; and 10. The District Administration Project is consistent with the Agency's Five Year Implementation Plan and a benefit to the Project Area as detailed in Exhibit A; and 11_._Before _the_City Council may_approve _a disbursement of Agency funds for-a public improvement, the City Council must conduct a public hearing in compliance with Health and Safety Code Section 33679; and 12. 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 13. As required by law, notice was published in the Ukiah Daily Journal on Wednesday, April 20, 2011 and Wednesday, April 27, 2011 and a project summary was available for inspection during the required period at the City Clerk's Office (300 Seminary Avenue) and on the City's website (www.cityofukiah.com); and 14. 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; and 15. In making the findings as set forth below, the City Council has considered the factual information provided in Exhibit A and at the hearing conducted on May 4, 2011; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council hereby authorizes the Agency to disburse funds for the District Administration Project, subject to the approval of a site development permit for the Project; and 2. The total taxes to be disbursed by the Agency for the District Administration Project is $4 million dollars, which includes the $2,293,045 previously disbursed under Resolution 2010-13 with the remaining balance disbursed as increment is credited to the outlay fund in future years ; and 3. The City Manager is directed and authorized to enter a written agreement with the District to assure that the funds are disbursed and used in accordance with this resolution, the Community Redevelopment Law and 1990 agreement, as amended. 4. Based on the facts as set forth in the attached Exhibit A, the City Council hereby finds: a. The District Administration Project is of benefit to the project area; b. The District Administration Project will contribute to the elimination of blight. c. There are no other reasonable means of financing the District Administration Project available to the community. d. The Project is consistent with the Agency's Five Year Implementation Plan, adopted on August 15, 2007 and amended on August 18, 2010. DULY AND REGULARLY ADOPTED by the City Council of the City of Ukiah this 4t" day of May, 2011. AYES:Councilmembers Landis, Thomas, Crane, and Mayor Rodin NOES: Councilmember Baldwin ABSENT: None ABSTAIN: None Mari Rodi , Mayor ATTEST: „ o nne M. Currie, City Clerk 2 EXHIBIT "A" TO RESOLUTION SUMMARY OF PROPOSED EXPENDITURE OF THE UKIAH REDEVELOPMENT AGENCY FOR THE CONSTRUCTION OF THE NEW UKIAH UNIFIED SCHOOL DISTRICT ADMINISTRATION AND EDUCATION RESOURCES OFFICE PROJECT The City of Ukiah created a redevelopment agency ("Agency"), adopted a redevelopment plan, and established a redevelopment project area in 1989. 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. Under a 1990 agreement with Ukiah Unified School District (District), the Ukiah Redevelopment Agency maintains a Capital Outlay Fund for the benefit of the District. Each year, the Agency credits the fund with an amount of money equal to the increases in the assessed value of the taxable property in the Agency's redevelopment project area above the sum of the Base Year Roll which would have been calculated and paid to District annually if the redevelopment project area had not been established. Funds accumulated in the District's Capital Outlay Fund may be used by the District for capital improvement projects when such improvements are found to be of a benefit to the project area and no other reasonable means of financing such improvements exists. Under a 2003 amendment to the original 1990 agreement with Ukiah Unified School District, the District may request annual payments from the District's Capital Outlay Fund, but in amounts as specified in a schedule attached to the 2003 agreement. The Agency is required to disburse requested payment in accordance with Section 3 of the 1990 agreement. The 1990 and 2003 agreements are included as Attachments #1 and #2 for review. The District is requesting the release of funds from its Capital Outlay Fund to pay for the cost of constructing the Ukiah Unified School District Administration and Education Resources Office Project ("District Administration Project") at 511 Orchard Avenue. The property is within the Agency's Project Area and is owned by the District. The request letter from the District is included as Attachment #3 and further details the District Administration Project. The City and Agency must comply with Health and Safety Code Sections 33679, 33445, and other provisions of Community Redevelopment Law (CRL) before permitting the use of redevelopment funds for the purpose of paying all or part of the value of the land for, and the cost of installation and construction of, any public owned buildings, facilities, or improvements. Two weeks prior to conducting the hearing, the City is required to make a summary available for public review. The summary must state the total amount of taxes proposed to be used for the 3 construction of the building 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. The findings are supported as follows: A. Estimate of taxes proposed to pay for the improvement and construction of The Ukiah Unified School District Administration and Education Resources Office is $4 million. B. There is no other reasonable means of financing the rehabilitation project. The total cost of constructing the new facility and purchase of real property is $4 Million. The District plan is to finance the project solely through the use of RDA Funds. The annual tax increment owed to the School District through the Redevelopment Agency that has currently accrued, the 2010 fiscal year apportionment due June 2011 and its future apportions up to the maximum funding request for the District Administration project. Unlike other district projects no other source of funding is available for the development of the service center. In order to benefit from the current real estate market the District used funds earmarked for other projects outside the redevelopment area to purchase the site. Reimbursement for the purchase of the property will allow the district to pay back funds otherwise not intended for the development of the district service center. C. Facts supporting findings under Health & Safety Code Section 33445. 1. The Ukiah Unified School District Administration and Education Resources Office is of benefit to the project area and contributes to the elimination of blight. i. The site at 511 S. Orchard is located in the redevelopment area and considered blighted. Construction of the New Ukiah Unified School District facility will benefit its immediate neighborhood and may serve as an impetus for other property improvements. The current District Office was constructed as a mortuary in 1962 and renovated as the District Office in about 1987. Presently its current condition also contributes to a blighted condition along the North State Street commercial corridor. The District preliminary plan is to repurpose the building for its district wide technology and data center though no plan has yet been approved by the Board of Trustees. ii. The presence of the facility and its approximate onsite workforce of 35 employees at 511 S. Orchard will promote and encourage commerce in the immediate neighborhood. The repurposing of 925 N State Street will reduce 4 congestion at that location by reducing its workforce population from approximately 20 down to about 5. 2. The Ukiah Unified School District Administration and Education Resources Office is consistent with Ukiah Redevelopment Agency's Redevelopment and Implementation Plans. L The use of redevelopment funds is consistent with the redevelopment plan adopted by the Agency pursuant to CRL. Specifically, (1) The elimination of blighting influences and the correction of environmental deficiencies in the Project Area, including, obsolete and aged building types, incompatible and uneconomic land uses, substandard, inadequate or deteriorated public improvements and facilities, (2) The replanning, redesign and development of underdeveloped areas which are stagnant or improperly utilized, and (3) The providing of opportunities for participation by the School District which is within the Ukiah Project Area in the revitalization of their property. ii. The use of redevelopment funds is consistent with the implementation plan adopted by the Agency pursuant to Health & Safety Code §33490. Specifically, (1) Eliminate and prevent the conditions which lead to the spread of blight by providing the renewal, redevelopment, and restoration of the Redevelopment Project Area, (2) Promote public safety and economic growth through an improved system of streets, utilities, and public facilities, (3) Plan, design, and develop area which are currently stagnant or underutilized, iii. The purchase of the property has completed California Environmental Quality Act ("CEQA') review process and declared categorically exempt. Before any construction can occur on the property, Ukiah Unified School District will require a site development permit from the City of Ukiah. CEQA will require the City to conduct an initial study to determine whether to approve and certify a negative declaration or an environmental impact report prior to acting on the application. Accordingly, full environmental review under CEQA will occur before any action is approved which could have an adverse impact on the physical environment.