HomeMy WebLinkAbout2011-10 Funding Agrmt with RDA I
RESOLUTION NO. 20ll-10 II
RF.SOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING A
FUND[NG AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF
UKIAH AND MAKING CERTAIV FIND[NGS THAT THE PUBLIC IMPROVEMENTS
BF,NEFIT THE UKIAH REllEVELOPMENT PROJECT AREA
WHEREAS, pursuant to the Community Redevelopmen[ Law ofi the State of California(Health and
Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Ukiah ("Agency') is carrying
out the Redevelopment Plan for the Ukiah Redevelopment Prqject Area('Redevelopment Project Area");
and
WHEREAS, in furtherance of the Redevelopment Plan, the Agency adopted a Five-Year
Implementation Plan, as required by Health and Safeh Code Section 33490, covering the period 2007-2012
' ("Implementation Plan); and
WHEREAS, the Aeency has completed a series oftraftic analyses and conceptual plans, on file with
[he City Clerk, for its downtown business district area and Gobbi Street, Perkins Street and the north/south
corridors of State and Main Streets. These studies and concept plans have proposed and partially designed ,
public improvements, includin�street realignment and related improvements m streets, sidewalks. on-street i
parking, traftic signals, streetscapes, and storm drains ("the Downtown Infrastruch�re ProjecP'), the cost of �
which is estimated at $2,000,000. The project will improve pedestrian walkability, traffic circulation, srorm i
drainage and aesthetics. The State Street portion of the project has been identified as a priority for funding by
the Mendocino Council of Governments (MCOG) and is vital to removing blight and preserving the City's
I historic downtown as a viable commercial area; and
WHEREAS, the Agency has negotiated an option agreement with North Coast Railroad Authority
for the I I-acre Perkins Depot property in the center of the City and a development agreement with a private
Browntield developer for the potential clean up and development of the site. 'I he engineer's estimate for
remediation ofthis Perkins Depot proper[y (°the Brownfield Remediation Projecf') is $1.5 million. The
Agency has been successful in leveraQing grant funds[o complete the historical renovation of the Depot
Building and continues to work toward the development of a Remedial Action Plan for environmen[al
closeout of the Perkins Depot propem. The property is one of the primary sites under consideration for the
State's new $129 million courthouse project and
WHEREAS, the Downtown Infrastructure Project and the Brownfield Remediation Project are
referred to herein as the "Public Improvements"; and
WHEREAS, to stimulate investment, reduce blight and enhance the pedestrian experience in the
downtown business district and related areas, the Aaency has entered contracts with over 75 property o�vners
to revitalize commercial structures in the downtown business district through a Fa�ade Improvement
Program; and
WHEREAS. in order benefit from the past investments by the Agency and its contractual (
commitments directed at the downtown business district and related areas, the Agency must complete the
Infrastructure Projec[s; and
WHEREAS. Section 33678 of the Communitv Redevelo ment Law provides that the portion of
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taxes allocated to the Agency pursuant to Section 33670(b)of the Community Redevelopment Law (Tax
Increments) will not be deemed the receipt or appropriation of proceeds for the purposes of Article XIII.B. of
the California Constitution so long as such Tax Increments are used for redevelopment activity which
primarily benetits Ihe redevelopment project area; and
WHEREAS,the Ciry shall be responsible for conducting environmental review prior to its approval
of the Public Improvements, final design and construction and as a prerequisite for use of any of the Agency
Contribution for final design and construction; and �
W HEREAS,the Agency and City have cooperated in the preparation of a Funding Agreement
("Punding Agreemenr')to provide for payment of the Agency Conu�ibution to the City to pay for the costs ��
for the City to design, obtain all approvals for and build the Public Improvements to benefit the I
Redevelopment Project Area(Project). �
NOW, THEREFORE, BE IT RESOLVED by the Ciry Council of the City of Ukiah as follows:
Section L The City Council hereby finds and detennines that the Project, and payment of the
Agency Contribution to assist with financing the Public Improvements as provided for under the Funding
Agreement, are of primary benefit to the Redevelopment Project Area by helping to eliminate blight within
the Redevelopment Project Area; fhat no other reasonable means of financing the costs of the Public
Improvements are available to the City; and that the payment of the Agency Contribution to construct the
Public Improvements is consistent with the Implementation Plan adopted by the A�ency pursuant to Section
33490 of the Community Redevelopment Law. These findings and determinations are based on Yhe
followine facts:
a) The major goals and objectives of the Redevelopment Plan include, among others, the
elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment !
Project Area, including, among others, inadeqitate or deteriorated public improvements, facilities and I
utilities; the strengthening of retail and other commercial functions in the Redevelopment Project Area; the �
strengthenina of the economic base of the Redevelopment Project Area and the community by die
installation of needed site improvements to stimulate new residential commercial and light industrial
expansion, employment and social and economic growth; and the planning, redesign and development of '
portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment
Plan provides the Agency with powers, duties and obligations for the redevelopment, rehabilitation and
revitalization of the area within the Redevelopment Project Area.
(b) Given the ongoing downturn in the economy, the decreases in funding available to cities and
other local jurisdictions for general funding purposes, including the current budget crisis of the City, State
and federal governments, and the lack and reduction of other governmental grants and assistance programs to
help with the costs of these projects and services, the City does not have the necessary funds in the General
Fund or any other sources available to i[to fund the costs necessary ro construct the Public Improvements
that arc required within the downtown business district and related areas(Perkins Street, Main Street, State
Street and adjacenC areas).
(c) In order to ensure that the Agency Contribution does no[exceed the costs of the Project �
provided to benefit the Redevelopment Project Area, the Funding Agreement requires the Ciry to provide
evidence to the Agency of the costs incurred by the City for the constmction of the Public [mprovements to �
benefit die Redevelopment Project Area.
(d) As set forth in Section 33031 of the Communiry Redevelopment Law, conditions that cause
blight include, among others, substandard, defective or obsolete desi�i or construction; faulry or inadequate
utilities, or other similar factors; depreciated or stagnant property values; abnormally high business
vacancies, low lease rates and abandoned buildings; and a high crime rate that constitutes a serious threat to
the public safety and welfare. The Project is consistent with the types of projects and programs identified in �
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the Redevelopment Plan and the Implementation Plan that will stimulate and encourage further I
redevelopment and private investment in the Redevelopment Project Area. II
Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the City Council ��
further detennines that the Project to be provided will benefit the Redevelopment Project Area and the �
Agency Contribution toward the costs of the Public Improvements are redevelopment activities as prescribed '
in Sections 33020 and 33021 of the Community Redevelopment Law, that the provision of the Project �
provided for under the Funding Agreement will primarily benefit the Redevelopmen[ Project Area, and that '
none of the funds used to pay for the Project will be used for employee or contractual services of any local
government agency except those directly relating to the provision of the Project to benefit the
Redevelopment Project Area.
Section 3. The Ciry Council hereby approves the Funding Agreement, including without limitation
the Aeency Contribution provided for under the Funding AgreemenL in substantially the fonn currently on
file with the AQency Secretary�. The City Manager is authorized and directed to execute the Funding
Agreement on behalf of the City, subject to any minor, clarifyino or technical modifications approved by
Ciry Attorney. The City Manaaer is further authorized and directed to take all actions and execute such
documents as may be necessary to carry out the obli�ations of the City under the Fundina Agreement.
DULY AND REGULARLY ADOPTED by the City Council of the City of Ukiah this 8'�' day of
March, 20l l.
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AYES: Councilmembers Landis, Thomas. Crane, and Mayor Rodin �
NOES: Councilmember Baldwin
ABSENT: None �
ABSTAIN: None �
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APPROVED: �� L�``
Mari Rodin, Mayor
(`� 7c
ATTEST:
� JoAnne Currie, City Clerk
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