HomeMy WebLinkAbout11-11 - Approving Cooperation Agreement with Redevelopment AgencyRESOLUTION NO. 11-11
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA, CALIFORNIA, APPROVING A COOPERATION AGREEMENT
WITH THE COSTA MESA REDEVELOPMENT AGENCY; CONSENTING
TO PAYMENT BY THE AGENCY OF CERTAIN PROJECTS,
INCLUDING PAYMENT FOR ALL OR A PART OF THE COST OF THE
INSTALLATION AND. CONSTRUCTION OF CERTAIN PUBLIC
IMPROVEMENTS; AND MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
WHEREAS, the Costa Mesa Redevelopment Agency ("Agency") is a community
redevelopment agency organized and existing pursuant to the California Community
Redevelopment Law (Health & Safety Code Section 33000, et seq.; "CRL") and has
been authorized to transact business and exercise the powers of a redevelopment
agency pursuant to action of the City Council ("City Council") of the City of Costa Mesa
("City"); and
WHEREAS, the Agency is engaged in activities necessary and appropriate to
carry out the Redevelopment Plan ("Redevelopment Plan") for the Costa Mesa
Downtown Project ("Project Area") that was originally adopted by the City Council by
Ordinance No. 73-74 on December 24, 1973, and thereafter amended by Ordinance
No. 77-27 on July 5, 1977, Ordinance No. 80-22 on November 18, 1980, Ordinance No.
86-24 on December 15, 1986, Ordinance No. 94-15 on November 7, 1994, Ordinance
Nos. 03-12 and 03-13 on November 17, 2003, and Ordinance No. 07-13' on June 19,
2007; and
WHEREAS, it .is a policy of the Agency to improve and provide public
improvements which are of benefit to the Project Area; and
WHEREAS, each of the City Council of the City of Costa Mesa and the
governing board of the Agency has determined that the public health and safety will be
promoted by providing for payment of part of the costs pay all or a part of the value of
the Land for and/or the cost of the installation and construction of certain public
improvements ("Public Improvements"), as well as certain affordable housing projects
and programs, all of which projects are more fully described in the Schedule of Projects
set forth in Exhibit A-1 (Public Improvements) and Exhibit A-2 (Affordable Housing
Programs and Projects) both of which are attached hereto and fully incorporated by this
reference (collectively, "Projects"); and
WHEREAS, CRL Section 33445 provides, in part, that notwithstanding
Section 33440, an agency may, with the consent of the legislative body, pay all or a part
of the value of the land for and the cost of the installation and construction of any
building, facility, structure, or other improvement that is publicly owned and is located
inside or contiguous to the project area, if the legislative body determines all of the
following:
"(1) That the acquisition of land or the installation or construction of the buildings,
facilities, structures, or other improvements that are publicly owned are of benefit
to the project area by helping to eliminate blight within the project area or
providing housing for low- or moderate -income persons.
(2) That no other reasonable means of financing the acquisition of the land or
installation or construction of the buildings, facilities, structures, or other
improvements that are publicly owned, 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 that are publicly owned is consistent
with the implementation plan adopted pursuant to Section 33490."
WHEREAS, CRL Section 33445.1 provides, in part, that notwithstanding Section
33440, an agency may, with the consent of the legislative body, pay all or a part of the
value of the land for and/or the cost of the installation and construction of any building,
facility, structure, or other improvement that is publicly owned and is located outside and
not contiguous to the project area, but is located within the community, if the legislative
body finds, based on substantial evidence in the record, all of the following:
(1) The acquisition of the land or the installation or construction of the
buildings, facilities, structures, or other improvements that are publicly owned are
of primary benefit to the project area.
(2) The acquisition of the land or the installation or construction of the
buildings, facilities, structures, or other improvements that are publicly owned
benefits the project area by helping to eliminate blight within the project area, or
will directly assist in the provision of housing for low- or moderate -income
persons.
(3) No other reasonable means of financing the acquisition of the land or the
installation or construction of the buildings, facilities, structures, or other
improvements that are publicly owned, are available to the community, including,
but not limited to, general obligation bonds, revenue bonds, special assessment
bonds, or bonds issued pursuant to the Mello -Roos Community Facilities Act of
1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of
Title 5 of the Government Code). In determining whether other means of
financing are feasible, the legislative body may take into account any relevant
factors, including, but not limited to:
(A) Legal factors, such as the eligibility of the improvements for funding
under the governing statutes;
(B) Economic factors, such as prevailing interest rates and market
conditions; or
(C) Political factors, such as the priority of commitments of other public
funding sources, the ability or willingness of property owners or taxpayers
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to bear the cost of any special assessments, taxes, or other charges, and
the likelihood of obtaining voter approval, if required; and
WHEREAS, the City and Agency desire to enter into that certain Cooperation
Agreement for Funding of Capital Improvement Projects, Affordable Housing Projects,
Publicly Owned Improvements (Costa Mesa Downtown Project) ("Cooperation
Agreement") under which the Agency would commit, encumber, and pay for all or a part
of the costs of the construction and installation of the Projects, including the Public
Improvements and all other Projects as set forth in Exhibit A; and
WHEREAS, the Agency desires to pay for all or part of the construction and
installation of the Public Improvements and all other Projects set forth in Exhibit A,
which will be undertaken within the time -frame, and with the funding committed in the
amounts set forth in Exhibit A and as provided for the Cooperation Agreement; and
WHEREAS, the Redevelopment Plan and the current Implementation Plan call
for facilitating the Public Improvements and completion of the Public Improvements will
further the goals and objectives set forth in the Implementation Plan; and
WHEREAS, the Public Improvements to be assisted by the Agency pursuant to
the Cooperation Agreement are located both inside and contiguous to the boundaries of
the Project Area, and will be of benefit to the Project Area and the residents of the
community, and will help to eliminate blight within the Project Area, in particular the
deficient and lack of infrastructure described in the Redevelopment Plan and the
Implementation Plan for the Project Area; and
WHEREAS, the Agency and the City have explored all possible funding sources
for the Public Improvements, including federal, state, and local sources, and the efforts
of private property owners and developers and there are no other reasonable means of
financing the part of the costs to acquire the land necessary for the installation and
construction of the Public Improvements available to the community other than with
Agency funds as explained in the materials and information submitted herewith; and
WHEREAS, the Agency has reviewed evidence, including testimony, if any, in
prepared and/or submitted connection with this matter, and has determined that the
foregoing recitals, and Ieach of them, are true and correct, and further has determined
that the provision of the Public Improvements is in the best interests of the City and the
Agency and the health, safety, and welfare of its residents, and in accord with the public
purposes and provisions of applicable state and local law requirements; and
WHEREAS, the Agency has reviewed the proposed Cooperation Agreement
between the City and the Agency; and
WHEREAS, the City and Agency make the findings and determinations relating
to the Projects pursuant to the California Environmental Quality Act ("CEQA") as set
forth in Section 111.6. of the Cooperation Agreement and therefore, no further or other
CEQA actions or determinations are necessary at this time; and
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WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred and the agenda report accompanying this resolution is incorporated by this
reference.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA
DOES RESOLVE AS FOLLOWS:
Section 1. The City Council finds and determines that: (i) the provision of the
Projects, including the Public Improvements, constitutes the affordable housing projects
and the installation or construction of the buildings, facilities, structures, or other
improvements that are publicly owned that are of benefit to the Project Area by helping
to eliminate blight within the Project Area; (ii) no other reasonable means of financing
the Projects, including the Public Improvements that include installation or construction
of the buildings, facilities, structures, or other improvements that are publicly owned, are
available to the community; (iii) implementation of the Projects, including the
construction or installation of the Public Improvements, are provided for in the
Redevelopment Plan; and (iv) payment by the Agency of funding for the Projects,
including the Public Improvements constitutes, the payment of funds for projects,
programs, and the cost of buildings, facilities, structures, or other improvements that are
publicly owned is consistent with the Implementation Plan adopted pursuant to
Section 33490.
Section 2. The City Council finds and determines that payment for part of the
costs of the Projects, including the Public Improvements, and entering into the
Cooperation Agreement are consistent with and are provided for in the Implementation
Plan for the Project Area.
Section 3. Further, the Projects, including the Public Improvements, provided
for by the Cooperation Agreement will further the Agency's goals and objectives as set
forth in the Redevelopment Plan and Implementation Plan.
Section 4. The City Council hereby incorporates the findings and
determinations set forth in Section 111.6 of the Cooperation Agreement relating to CEQA.
Section 5. The City Council hereby accepts from the Agency its commitment,
allocation, and payment of the amounts set forth in the Exhibit A and in the Cooperation
Agreement to pay for part of the costs of the land necessary for the construction and
installation of the Public Improvements.
Section 6. The City Council authorizes and directs the Mayor and/or the City
Manager to execute on behalf of the City the Cooperation Agreement substantially in
the form submitted herewith and with such changes as approved by the City Manager
and City Attorney that are consistent herewith. The City Council further authorizes and
directs staff to take all actions necessary and appropriate to implement the participation
by the City pursuant to the Cooperation Agreement, including without limitation issuance
of warrants.
CI
Section 7. The City Clerk is authorized to attest the final form of the
Cooperation Agreement on behalf of the City.
Section 8. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 8th day of March 2011.
ATTEST:
Julig Folcik, City Clerk
CITY OF COSTA MESA,
a California municipg.l corporation
Gary
han,
APPROVED AS TO FORM:
--1111AII-T)k
T15oWiasUiarfe, City Attorney
I•i
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that foregoing Resolution No. 11-11 was duly passed and adopted by the City Council
of the City of Costa Mesa at a Special Joint Redevelopment Agency/City Council
meeting held on the 8th day of March, 2011, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: MONAHAN, RIGHEIMER, LEECE
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: MENSINGER, BEVER
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 16th day of March, 2011.
(SEAL)
JUL07FOLCIK, CITY CLERK
0
EXHIBIT A
SCHEDULE OF PROJECTS
(with Payment Schedule)
11
EXHIBIT A-1
Downtown Project Area Capital Improvement Projects'
PARK IMPROVEMENT PROJECTS
Cost
Total
Fiscal Yee
Within Proje
Area
FY 10/11- F
Yes
Davis Ball Field Lighting Project
$628,000
$628,000
11/12
Major rehabilitation
Lions Park Playground and Picnic Shelter 2
$100,000
$1,100,00
FY 11/12 -
And
Includes new playground, shelter, fitness stations, an
(Design)
$1,200,000
$1,300,00
FY 13/14
Yes
a % mile loop
Construction
West 19th Street
Newport
Boulevard
STREET PROJECT
Cost
Total
Fiscal Yez
Within Proje
From:
To:
Cost
Total
Fiscal Yee
Within Proje
Major rehabilitation
Between Wilson Street and Newport Boulevard
(Design an
$1,100,00
FY 13/14
And
Area
and resurfacing
I Contiguous
$100,000
West 19th Street
Newport
Boulevard
Park Avenue
$110,000
$610,0001
FY 11/12
FY 12/13
Yes
Terminal Way
Westerly end
Anaheim Avenue
$200,000
Cabrillo Street
Newport
Boulevard
Orange Avenue
$300,000
LANDSCAPED MEDIAN IMPROVEMENT PROJECI
Cost
Total
Fiscal Yez
Within Proje
Area
Harbor Boulevard
$1,100,000
FY 11/12-
Yes
Between Wilson Street and Newport Boulevard
(Design an
$1,100,00
FY 13/14
And
Construction
I Contiguous
$100,000
SR 55 Gateway Median Improvement
(Design)
$120,000
$220,000
FYI 2/13 -
Yes
Median Improvement to right-of-way
(Constructio
13/14
Placentia Avenue3
$1,500,000
$1,500,00
FY 11/12Non-Contiguo
�l
Between 16th Street and north of 19th Street
(Constructiod
FY 13/1
1. Gas tax revenues are limited and there are no other revenue sources available for these capital
improvements. Absent the availability of RDA funding, these projects would be deferred indefinitely.
The street improvement projects would enhance circulation, accessibility to the Downtown Project Area via
Harbor Boulevard, as well as to West 19th Street, Terminal Way. and Cabrillo Street. The landscaped
median improvements would also enhance circulation, eliminate blight, enhance safety and improve the
overall aesthetics of the Downtown Project Area.
2. On November 17, 2009, City Council approved the submittal of an application for a grant under the Safe
Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006,
Proposition 84 based on a conceptual design for Lions Park (copy attached). Over 200 applications were
received by the State and only 62 were selected. Unfortunately, Lions Park was not one of them. Based on
the criteria used to select projects where priority is given to new parks, Lions Park does not have a good
chance for funding when the next call for projects is announced.
The proposed improvements for Lions Park include the demolition of the existing picnic shelter and
returning the area to landscaped open space, reconstructing the aging playground with a new aeronautical
themed playground, adding three family size picnic shelter in proximity of the playground, constructing a
new '/-mile decomposed granite (DG) loop with strategically placed exercise stations, landscape
improvements, and new safety lighting. These park improvements will eliminate blight, enhance safety and
improve the general aesthetics.
3. The Placentia Avenue landscaped median improvement project, although non-contiguous, will be of direct
direct benefit to the Downtown Project Area, since Placentia Avenue is a primary north -south arterial that is
located just west of the Downtown Project Area. Within the last few years, over $1 million of street
improvements have been made to West 19th Street, which is contiguous and within the Downtown Project
Area. These improvements have stimulated economic growth and private redevelopment improvements in
the Downtown Project Area. The proposed landscaped medians on Placentia Avenue will complement the
previous improvements on West 19th Street. Placentia Avenue intersects 17th, 18th and 19th Streets,all of
which are primary east -west corridors through the Project Area. Furthermore, Placentia Avenue is a major
image corridor from a regional standpoint since it provides an alternative north -south vehicle route for both
regional and local trips.
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EXHIBIT A-2
SCHEDULE OF PROJECTS
Affordable Housing Projects and Programs to be Paid from Housing Fund
AFFORDABLE HOUSING PROJECTS
Cost
Total
Fiscal Yee
Location
Within
HOUSING PROGRAMS
Cost
Total
Fiscal Yee
or Contiguou
($290,000 from
FY 10/11
to Project Are
Harpers -Pointe Senior Housing Project
Housing Fund and
$990,000
FY 10-11- f
contiguous an
Single Family Rehabilitation Loan Program
$250,000 annually
$1.5 millio
15-16
non-contiguou
Downtown Fund
(6 years)
Single Family Rehabilitation Grant Program
$200,000 annually
$1.2 millio
FY 10-11- F
contiguous an
15-16
non-contiguou
Neighborhood Stabilization Program Projects
$366,466
$366,466
6 ears
non-contiguou
First -Time Homebuyer Assistance Program
$10,100 annually
$60,600
FY 10-11- F
contiguous an
Senior Center Site Housing Project
$1 million
$1 million
15-16
non-contiguou
6 ears
Housing Program and Project Administration
$240,000 annually
$1.44 millio
FY 10-11- F
contiguous an
15-16
non-contiguou
6 ears
AFFORDABLE HOUSING PROJECTS
Cost
Total
Fiscal Yee
Within Projec
Area
$990,000
($290,000 from
FY 10/11
non-contiguou
Harpers -Pointe Senior Housing Project
Housing Fund and
$990,000
FY 13/14
$700,000 from
Downtown Fund
1901 Newport, Pacific Plaza Project
$928'329
$928,329
FYI 0-11
Yes
FYI 3/14
Neighborhood Stabilization Program Projects
$366,466
$366,466
FYI 0-11
non-contiguou
FY12-13
Senior Center Site Housing Project
$1 million
$1 million
FY11 —12
contiguous
FY12-13
cquisition/Rehab Affordable Housing Project
$1,196,482
$1,196,48
FY12-13
contiguous an
FY15-16
non-contiguou
Other sources of funding for Housing Fund Activities and Projects are limited and there are no other revenue sources available
for these activities/projects. Absent the availability of RDA funding, these projects would be deferred indefinitely and/or
canceled.
Although many of the Agency's housing activities and projects are not located within the Project Area each and all of benefit to
the Project Area in that the affordable housing programs and projects will remove blight and enhance the City's stock of
affordable housing available to persons of low and moderate income, and facilitate the City achieving the goals and objectives
of the Housing Element of the General Plan and the City's Regional Housing Needs Assessment (RHNA) allocation.
DOCSOC/ 1470734v2/022353-0002