HomeMy WebLinkAbout2001-05-08 City CouncilTO:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
ATTN:
FROM:
DATE:
SUBJECT:
FINANCE COMMITTEE
CITY MANAGER
MAY 8, 2001
DEPARTMENT: CITY MANAGER
CMR: 195:01
REDEVELOPMENT AGENCY FEASIBILITY REPORT
REPORT IN BRIEF
On February 23, 2000, staff presented an updated long-range financial forecast to the
Finance Committee. The forecast identified resources available to fund ongoing and new
programs and projects. On June 6, 2000, the Finance Committee determined that
alternate means of financing would be necessary to fund new capital projects. One
funding resource identified for further research was the establishment of a redevelopment
agency.
The establishment of an agency and adoption of a redevelopment plan can assist in the
revitalization of distressed business districts..A joint financing authority by the City and
redevelopment agency can also be created.
A number of procedural steps must be followed in adopting a redevelopment plan.
S’everal reports must be prepared and an EIR must be prepared. Following. public"
participation and comment, consultation with affected taxing agencies, and a formal
public hearing process, a redevelopment plan may be adopted by the City Council.
When the redevelopment, plan is adopted, the base year for establishment of tax
increment financing is established. This date establishes the base or current assessed
value of the properties within the redevelopment project area. Edgewood Center meets
the requirements for establishment of a project .area. A project area study will help
determine if the proposed project area is feasible.
In addition to the financial benefits associated with developing a redevelopment agency
and plan, revitalization of the Edgewood Center provides a community benefit to the
citizens of Palo Alto.
CMR:195:01 Page 1 of 7
RECOMMENDATION
Staff recommendSthat.the City Council:
Make the finding that formation of a redevelopment agency "shall serve the public
interest and promote the public safety and welfare in an effective manner" according
to California Redevelopment Law section 33200 (a) and direct to staff to draft an
ordinance to form a redevelopment agency and other necessary organizational
documents.
Authorize the City to initiate a project area study for the Edgewood Center and initiate
the procedures for the adoption of a redevelopment plan for Edgewood Center,
Direct staff to form a Neighborhood Advisory Committee (NAC) to work with staff in
guiding the development of the proposed redevelopment plan for the Edgewood
Project Area and assist the City in developing goals and outcomes that are consistent
with the surrounding neighborhood, the City’s Comprehensive Plan, and
Redevelopment Law.
BACKGROUND ’
On February 23, 2000, staff presented an updated long-range financial forecast to the
Finance Committee. This forecast detailed, under different economic scenarios, available
resources to fund ongoing and new programs and projects. Within this context, staff
presented the beginning of a series of reports outlining options to finance remaining
existing infrastructure work and major new capital projects. On June 6, 2000, the
Finance Committee determined that alternate means of financing would be necessary to
fund new capital projects. On September 19, 2000, the Committee discussed the
possibility of establishing a redevelopment agency as one of these alternate sources of
financing. Redevelopment agency dollars can be invested in affordable housing,
infrastructure, economic revitalization efforts and public facilities. Other than affordable
housing, agency revenues must generally be used within the project area of an adopted
redevelopment plan. An agency’s affordable housing money can be used anywhere in the
City.
There are two primary reasons for considering the adoption of a redevelopment plan.
The primary reason is to facilitate the revitalization of distressed business districts or
neighborhoods based on approved project area plans. Second, with a formal Agency, the.
City and the Agency could create a joint financing authority. Such a financing authority ¯
is able to aggregate different sources of revenue in order to support the issuance and
repayment of bonds.
CMR: 195:01 Page 2 of 7
This report will detail what steps are necessary to adopt a redevelopment plan and why
staff believes that a redevelopment plan could be a valuable resource for implementing
stated City goals.
DISCUSSION
Redevelopment Agencies
The first step in the process is to formally create the redevelopment agency for the City.
The Community Redevelopment Law authorizes every city and county in California to
establish a redevelopment agency. The agency is established by an ordinance of the
legislative body, which can determine that the members of the body shall also serve as
the governing board of the redevelopment agency. However, the redevelopment agency
is a separate legal entity from the city. In addition to the ordinance that creates the
agency, there are a number of other procedural steps that are required in the formation of
an agency, such as the adoption of agency bylaws, designation of officers, adoption of a
conflict of interest code, etc. ~
Once the .agency has been established, the community can initiate steps for adopting a
redevelopment plan for a particular area. The adopted redevelopment plan essentially
serves as a charter for the agency’s activities, by describing both the scope and the limits
of its authority. It also is a long-term planning and financing document. It can authorize
an agency to conduct its activities for up to 30 years, and collect tax increment to repay
its indebtedness, for up to 45 years after plan adoption.
Redevelopment has been and remains one of the fundamental tools used by most cities in
California to revitalize deteriorating and blighted business districts and neighborhoods.
The most current figures from the State Controller’s Office indicate that there are. 406
redevelopment agencies statewide. In order to accomplish stated objectives of an
adopted redevelopment plan, redevelopment agencies have powers that are typical for
local governmental agencies. These general powers include the authority to:
¯ Organize its affairs and staffing to carry out the redevelopment plan;
¯ Adopt a budget .and system to pay and account for its expenditures;
¯Buy property;
¯Sell property;
¯Make certain types of loans or grants to carry out the redevelopment plan;
¯Construct infrastructure, such as streets, sidewalks; water and sewer systems,
street lighting, landscaping, signs, signals, .parking facilities and other public
improvements;
¯Assist development by property owners, developers or manufacturing
companies to carry out the redevelopment plan;
CMR: 195:01 Page 3 of 7
¯Rehabilitate, modernize, consolidate or remove structures where needed to
implement the plan;
¯Assist in the development or rehabilitation of housing for use by moderate-
income and/or low-income families.
In addition to these general powers, a redevelopment agency has three special powers that
are used for the revitalization of areas identified in the redevelopment plan. These
powers are:
¯The ability to buy private property for resale to another private person or
organization. This allows an agency to acquire one or more properties for
consolidation or reconfiguration to enable private, market-based
redevelopment to occur.
¯The ability to use the power of eminent domain to acquire private property.
Although every property in the state is already subject to governmental use of
eminent domain by the state, county, cities, school districts and utilities for the
purpose of public use, redevelopment authority allows the agency to condemn
private property, upon paying a fair price for the property and relocating the
tenants. The agency may then resell the property so long as the subsequent use
of the property carries out the redevelopment plan and eliminates blight.
¯The power to collect property tax "increment" in order to finance the
redevelopment activities authorized in the plan.
The underlying.reason for giving redevelopment agencies the special powers described
above is the existence of "blight" within the project area defined by an adopted
redevelopment plan. "Blight" is defined in the Community Redevelopment Law and
includes both physical and economic factors.
There are a number of procedural steps that must be followed in adopting a
redevelopment plan. These include the preparation of various reports that: describe the ¯
specific physical and economic blighting conditions within the proposed redevelopment
project area; analyze the financial feasibility of the proposed project; and discuss the
types of redevelopment activities that will eliminate the blighting conditions. An
Environmental Impact Report (EIR) must be prepared on the proposed redevelopment
plan. There are also various opportunities for public participation and consultation with
affected taxing agencies. The plan adoption process culminates in a formalpublic
hearing, often a joint meeting of the redevelopment agency and city council. The council
adopts the redevelopment plan by ordinance. Thereatter, the redevelopment agency is
vested with the responsibility for implementing the plan, although certain agency
activities still require the approval of the city council.
When a city council adopts a redevelopment plan, the base year for establishment of tax
increment financing is established. This date establishes the base or current assessed
CMR:195:01 Page 4 of 7
value of the properties within the redevelopment project area. Generally speaking, the
increases in property tax over the base year assessed valuation accrue to the
redevelopment agency for use in mitigating the conditions identified in the
redevelopment plan. Generation of these tax increment dollars allows an agency to
leverage funds through financing mechanisms such as bond issuance by the
redevelopment agency. The typical redevelopment plan adoption process is identified in
detail in Attachment 1 of this staff report.
Edgewood Center
To explore the feasibility of establishing a redevelopment agency, an interdepartmental
staff team has been working with representatives of Keyser Marston. Associates, Inc.,
who are experienced in the establishment of redevelopment agencies and plan adoptions
throughout the state. As part of this effort, the team reviewed several areas in Palo Alto
that. might meet the threshold criteria for the formation of a project area. One site,
Edgewood Center, appeared to meet the requirements for establishment of a project area
as well as being a center that would benefit from City assistance to meet Comprehensive
Plan goals.. A project area study will help determine if the proposed project area is
feasible and desirable as a means, of fulfilling these City objectives.
Edgewood Center is located on Embarcadero Road just West of Highway 101. The
Center includes an Albertson’s grocery store, Shell service station, several marginal small
shops and the Maharishi School of Science. In the recently completed Retail Strategy for
the Ci_ty of Palo Alto (Attachment 2) completed by The Sedway Group, the physical
condition of the Center is described as "showing severe signs of physical deterioration."
Several barriers to redevelop this center are cited in the Retail Strategy. Crime figures
available from the City Police Department indicate that Edgewood Plaza had the highest
number of serious crimes (assault, battery, burglary; robbery, sexual assault, stolen
vehicle) of any retail area in the City from January 1998 to April 2000. This.is a serious
deterrent to increasing customer usage of the center. The lack of visibility at the center
will also make it difficult to attract credit tenants to the center. Another. barrier to the
attraction of new retailers and customers is the fact that the Center is old, in poor physical
condition, and functionally obsolete by current supermarket and shopping center
standards. Finally, multiple ownership of the land and buildings is a deterrent to pursuing
coordinated revitalization of the buildings, parking and landscaping. Currently, there are
four parcels on the site, all with different owners. This parcelization is an obstacle
commonly identified in the redevelopment law as a significant obstacle to revitalization
and redevelopment.
In addition to tax increment funds accruing to the City from the Edgewood Center, the
City could also benefit from increased sales tax at the Center,. if it was redeveloped as a
mixed-use or retail center. Sales at Edgewood Plaza were down 59 percent from $6
million in 1989 to $2.4 million in 1999. From 1989 to 1992, sales hovered at $5.5 to $6
Page 5 of 7
million dollars, before dropping drastically in 1993 during the last economic recession.
Edgewood Plaza has failed to recover and sales have continued to fall. The loss in sales
.tax revenue to the City from 1989 to 1999 from sales at the Edgewood Center is
approximately $35,000 yearly.
In addition to the financial benefits accruing to the City, community benefits for
redeveloping Edgewood Plaza include a revitalized shopping area to serve the local
residents.
RESOURCE IMPACT
Four primary departments will be impacted by the approval of this staff recommendation:
the City Manager’s Office, Administrative Services Department, Planning and the City
Attorney’s Office.
The City Manager’s Office will be responsible for administration of the Redevelopment
Agency and oversight of the consultant working on redevelopment plan adoption
services. This work will initially be absorbed into the current workload of the Office. A
consultant contract for $76,000 is part of a separate staff report and recommendation.
Administrative Services will be responsible for the following annual actions: budget
development and financial reporting, project management, monitoring and verifying tax
increment revenues, calculation of housing set-aside and monitoring and reporting on
agency financial limits and doing the annual Statement of Indebtedness. This workload
will initially be absorbed into the current workload of the Department.
The City Attorney’s office will address this matter with the assistance of outside counsel.
The estimated cost for these services through the 2001-02 fiscal year is less than $25,000.
These funds have not been budgeted.
The Planning and Community Environment Department will be responsible for
overseeing the preparation of an EIR to be prepared by a consultant for a cost ranging
from $50,000 to $75,000. Planning estimates that it will require one-fourth of an existing
Full Time Equivalent (FTE) to oversee the EIR preparation and participate in the
formation of the Agency. This workload will initially be absorbed into the current
workload of the Department.
POLICY IMPLICATIONS
The following policies and programs from the City’s Comprehensive Plan identify goals
for revitalization of the Edgewood Center that support a City decision to designate this
area a Redevelopment Project Area:
CMR:195:01 Page 6 of 7
Policy B-27
Support the upgrading and revitalization of Palo Alto’s four Neighborhood
Commercial Centers
Policy L- 18
Encourage the upgrading and revitalization of selected Centers in a manner.that is
compatible with the character of surrounding neighborhoods.
Policy L-37
Maintain the scale and local-serving focus of Palo Alto’s four Neighborhood Centers,
Support their continued improvement and vitality.
¯ProgramL-37
Encourage property owners within Neighborhood Centers to prepare master
plans, with the participation of local businesses, property owners and nearby
residents
TIMELINE
Attached to this memo is a letter from Keyser Marston dated April 24, 2001 (Attachment
3) that includes both an expedited and a standard schedule for proceeding with the
adoption of a redevelopment plan. It appears that the standard schedule, because of the
timing of the establishment of a base year for tax increment financing and other
considerations, would be the schedule most in keeping with a reasonable schedule for
City staff. This schedule would target a March 2002 redevelopment plan adoption.
ENVIRONMENTAL REVIEW
This report, detailing the process for adopting a redevelopment plan, presents a
preliminary policy assessment to Council for discussion and direction to staff as part of
the City’s long term financial planning. If the Council determines that it would like to
adopt a redevelopment plan for the proposed area; the Community Redevelopment Law
requires that the proposed redevelopment plan be analyzed for environmental impacts.
PREPARED BY:S~A~c Resources Manager
CITY MANAGER APPROVAL .
EMIL I-IAm SON
Assistant City Manager
ATTACHMENTS
Attachment 1: Redevelopment Plan Adoption Process
Attachment 2: Retail Strategy for the City of Palo Alto, Edgewood Plaza
Attachment 3: Letter from Keyser Marston dated April 24, 2001
CMR:195:01 Page 7 of 7
Attachment 1
Redevelopment Plan Adoption Process
The normal redevelopment plan adoption process includes:
¯City Council adoption of a Survey Area (the area to study for inclusion in a.
redevelopment project)
¯Planning Commission adoption of a Preliminary Plan (the primary purpose of the
Preliminary Plan is to establish the Project Area boundaries)
¯Agency receipt of Preliminary Plan and establishment of base year
¯Agency mailings to affected taxing agencies, the County Fiscal Officer and the State
Board of Equalization notice of the Agency’s intent to adopt a redevelopment project
and the proposed base year. (The County Fiscal Officer has 60 days to prepare a
report identifying the property values, and .taxing entities serving the area including
their percentage of the property taxes)
¯Agency receives draft Redevelopment Plan and Owner Participation and Preference
Rules (O.P. Rules) and authorizes their availability for public review
¯Agency staff holds community meeting to discuss the proposed project
¯Agency adopts Preliminary Report (includes. the blight and financial feasibility
findings) and authorizes public review of the draft EIR (45 day period)
¯Agency sends Preliminary Report and draft EIR to affected taxing agencies for their
consideration and offers to consult.
¯Planning Commission makes a report to the City Council on conformance of the
Redevelopment Plan with the General Plan and a recommendation on the adoption of
the Plan
¯Agency adopts Owner Participation and Preference Rules and Report to Council
(contains the components of the Preliminary Report plus a summary of the actions
taken during the adoption process) and Final Report to Council.
¯Agency and City Council consent to joint public hearing on the Plan
¯Agency and City Council hold a hearing on the Redevelopment Plan and EIR. Notice
of the hearing is published in the newspaper for four consecutive weeks, and affected
taxing agencies are notified by certified mail
¯Project Area owners and occupants are mailed notice 30 days in advance.
¯Council adopts ordinance approving the Redevelopment Plan.
¯Notice of Determination filed with County Clerk.
ATTACHMENT 2
SEDWAY GROUP I
I Real Estate and Urban Economics
Vacant/Underutilized Parcels. Overall, the center is underutilized. Land at the back of the site on
Ramona Street is occupied by a Goodwill Donation station. This portion oft.he property could be an
appropriate site for housing development, which would enhance demand for on-site retail space. Parcel
number 132-28-074, a 10,165-square-foot site with street frontage on Alma Street, is vacant. The
development of this site with an appropriate tenant would provide a street presence for the center as
well as helping the center achieve a critical mass of commercial space to attract shoppers.
Vacant Commercial Space. Long,term vacancies have been a problem at the center. There are
currently four vacant commercial spaces at Alma Plaza. Three of the four are located in buildings
fronting on a semi-hidden walkway to the north of Albertson’s. Anecdotal evidence from site visits to
other commercial areas where previous Alma Plaza tenants are now located indicates that some spaces
have been vacant for upwards of five years. No "For Lease" signs were posted.
Past/Future Changes in the CommercialArea. Albertson’s is working on plans for a major expansion
of its store and renovation of the center. There has been some community opposition to the plans as
a result of the proposed size of the new supermarket, which exceeds 20,000 square feet. Though the
area is zoned PC, and therefore is not constrained by the 20,000-square-foot limit imposed by the
.Neighborhood Commercial zoning category, the supermarket must show evidence of public benefit to
amend the original PC regulations of the Alma Plaza site. Albertson’s has shown a commitment to
negotiating the community and planning process in order to follow through on expansion of the
supermarket and renovation of the ,center.
Barriers to Development/Revitalization. The most significant barrier to the revitalization of Alma
Plaza is obtaining community support for amending the current Planned Community zoning regulations
for the site, which would enable the expansion of the supermarket. A public benefit must be shown to
justify amending the current zoning at .the center. Albertson’s is working with the community to
identify an appropri~ite public benefit. Albertson’s owns all three parcels on which the site is located
and appears committed to the renovation of the center. However, Albertson’s will only undertake
renovation of the center if it is able to expand the size of its supermarket.
Priorities for the Center, Based on the preceding analysis, Sedway Group suggests the following
priorities for revitalization of the center: <
¯Facilitate negotiations between Albertson’s and neighborhood residents to support receipt of
Albertson’s approval to expand its supermarket and renovate the shopping center.
¯Provide incentives or identify means of improving the deteriorating physical conditions of the
buildings, public spaces, and landscaping. .
¯ Fill the long-term vacancies with successful tenants that will add to the commercial mix and serve
the community.
¯Utilize the site more intensely and/or effectively, and encourage the development of the vacant
parcel fronting on Alma Street.
Edgewood Plaza Shopping Center
Physical Condition. The ~.dgewood Plaza Shopping Center, located near the intersection of Highway
101 and Embarcadero Road, was built in’the late-1950s (see Exhibit 4 area map on Page 11). Like
PALO ALTO RETAIL STRATEGY JUNE 2000
SEDWAY GROUP
~Reai Estate and Urban Economics
Alma Plaza, the center is showing severe signs of physical deterioration. The buildings require paint
and new stucco in places. The parking lot drains inadequately and suffers from numerous potholes.
Landscaping is minimal and public spaces and f~wniture are nonexistent. The fagade facing the
neighborhood to the north is an uninviting blank wall.
Despite being near a major highway and arterial, the center remains relatively hidden f~om view behind
a wail, trees, and a Shell service station. The minimal signage is located at the entrance to the center,
well off the major thoroughfare of Embarcadero Road.
Tenant Composition. A 20,000-square-foot Albertson’s supermarket anchors the Edgewood Plaza. ’
The supermarket is clean inside and offers an ATM, but is smaller than the standard supermarket
companies desire currently. The additional businesses are roughly evenly split between low-performing
service and retail establishments such as a cleaners, liquor store, hair and nail salons, shoe repair, 99
cent store, and dell. The addition of higher-profile tenants would be integral to the revitalization of the
center.
Sales Trends. Sales at Edgewood Plaza are down 59 percent from $6.0 million in 1989 to $2.4 million
in 1999~. From 1989 to 1992 sales hovered around $5.5 to $6 million dollars, before dropping
drastically in 1993 during the last economic recession. The center has failed to recover since and sales
have slowly fallen since 1993. The loss in sales tax revenue to the city from the 1989 to 1999 figure
is approximately $35,000 per year.
Vacant/Underutilized Parcels. The two parcels on which the shopping center is situated are
underutilized overall and would benefit from more intense use of the land area. Specifically the parking
area directly north of the Albertson’s is wasted space and could be used to expand the supermarket or
for other types of uses, Such as housing.
Vacant Commercial Space. At the time of the site visit and analysis there were two commercial
vacancies in the center. Both were located in the building directly across from the Albertson’s.
Following three to four months of vacancy the north-facing space (facing Channing Avenue) was rented
to a hair and wig supply store in early March of this year. The second space has been vacant for three
to four months and remains vacant.
Past/Future Changes at the Center. Albertson’s has plans for a major remodel of its supermarket.
Commercial Lessors, Inc., the owner and manager of the two commercial buildings on the western half
of the site (parcel number 003-18-023), indicated that they have submitted an application with the
planning department to perform faqade improvements. They are awaiting approval to move forward.
Barriers to Development/Revitalization. There are several barriers to revitalization of this
neighborhood shopping center. First, crime figures available from the city police department indicate
that Edgewood Plaza had the highest number of serious crimes (assault, battery, burglary, robbery,
sexual assault, stolen vehicle) of any retail area in the city from January 1998 to April 2000. This is a
tremendous barrier to increasing customer visits to the center. Second, while the center is located near
~AI1 sales tax revenue and total sales figures are inflation adjusted to 1999 dollars. 1999 figures are 12 months
ending 3~ Quarter’1999.
PALO ALTO RETAIL STRATEGY 10 JUNE 2000
SE DWAY GROUP
I Real Estate and Urban Economics
EXHIBIT 4
EDGEWOOD PLAZA STUDY AREA MAP
/Street Atlas, USA
PALO ALTO RETAIL STRATEGY I I JUNE 2000
~, SEDWAY GROUP
I Real Estate and Urban Economics
the junction of a major highway and city arterial, it is situated off Embarcadero Road, behind the Shell
service station. The lack of visibility will make it difficult to attract c~:edit tenants to the center. In
addition, and largely as a result of the previous factors, the current tenant mix is neither complementary
nor attractive to potential catalyst tenants.
Another barrier to the attraction of new retailers and customers is the fact that the center is old, in poor
physical condition, and functionally obsolete by current supermarket and shopping center standards.
Finally, multiple ownership of the land and buildings will be a deterrent to pursuing coordinated
revitalization of the buildings, parking, and landscaping. Currently, the center’consists of two parcels,
each with separate owners. In addition, Albertson’s does not have site control of the parcel it occupies.
Priorities for the Center. Priorities for the Edgewood Plaza include:
¯Attract commercial tenants that will add vitality to the center, serve the surrounding community,
attract a wider range of the market area’s demographic groups, and complement the supermarket.
¯Identify a means of utilizing the lots more intensely and/or effectively.
¯Encourage the renovation and revitalization of the existing building, parking lot,=and landscaping.
¯Improve the signage and visibility of the center.
Town & Country Village Shopping Center
Physical Condition. Town & Country Village is strategically located at the major intersection of E1
Camino Real and Embarcadero Road, within one mile of the Stanford University campus (see Exhibit
6 on Page 14). The design of the center, which first opened in 1949, uses an attractive California
architectural details of terra cotta tiles, wood, shaded walk-ways surrounding the buildings, and
considerable greenery. At a minimum, physical improvements are needed for the paint, the concrete
walkways, and the asphalt parking lot.
While Town & Country lacks major street signage, it is extremely accessible and highly visible at the
corner of a prominent intersection.
Tenant Composition. Town & Country Village consists almost entirely of small retail shops in the
range of 1,000 to 2,000 square feet~ The center includes a mix of specialty retail shops, neighborhood
service retail, and restaurants/cafes. Approximately 15 percent of the .space, located primarily on the
second level, is occupied by office uses. The anchor tenant space, 15,000 square feet formerly occupied
by John’s Town & Country Market, is currently vacant. "
Sales Trends. Inflation adjusted year 1999 sales of $26.8 million are down 7 percent from $28.8
million in 19893. After e.xperiencing a decline in 1991 sales figures at Town & Country Village have
hovered between $22 and $25 million from 1991 to 1998, before showing a slight increase in the year
ending in the third quarter of 1999. Annual taxable sales revenue accruing to the city from Town &
Country Village is approximately $270,000.
~ All sales tax revenue and total sales figures are inflation adjusted to 1999 dollars. 1999 figures are 12 months
ending yd Quarter 1999.
PALO ALTO RETAIL STRATEGY 13 JUNE 2000
KE YS ER MARS TON
500 SOUTH GRAND AVENUE, SUITE 1480
LOS ANGELES, ’CALIFORNIA 90071
PHONE: 213/622-8095
FAX : 213/622-5204
ASSOCIATES INC.
ATTACHMENT 3
ADVISORS IN~
REAL ESTATE
REDEVELOPMENT
AFFORDABLE HOUSING
ECONOMIC DEVELOPMENT
FISCAL IMPACT
INFRASTRUCTURE FINANCE
VALUATION AND
LITIGATION SUPPORT
MEMORANDUM
Los Angeles
Calvin E. Hollis, II
Kathleen H. Head
James A. Rabe
Paul C. Anderson
Gregory D. Soo-Hoo
San Diego
Gerald M. Trimble
Paul C. Marra
SAN FRANCISCO
A. Jerry KeyserTo:Susan Arpan Timothy C. Kelly
Kate Earle FunkCity of Palo Alto Robert J. Wetmore
Debbie M. Kern
From:Paul Anderson
Date:
Subject:
April 24, 2001
Summary Plan Adoption Schedule
Enclosed please find a summary Redevelopment Plan adoption schedule for the proposed
Edgewood Redevelopment Project. The Schedule assumes the City Council will take their
first actions related to the adoption process on June 18, 2001 when they adopt an ordinance
forming the Redevelopment Agency and adopt a resolution designating the Survey Area (the
area for evaluation). The schedule anticipates that the Project will be adopted on March 25,
2002. The schedule is organized by major tasks/actions (i.e. document preparation, EIR
process, Planning Commission report and recommendations etc.) The schedule provides for
Finance Committee review of all documents prior to Agency/Council action and the formation
of a community advisory committee.
As an overview, the project base year will be 2001-2002. Any future tax increment that would
be generated from the new project would be the result of new development or change in
ownership with a higher sales price that might occur after August 20, 2001 when the 2001-
2002 base year is equalized. The base year value is the assessed value of the Project Area
as determined by the County Auditor Controller on January 1, 2001 (lien date) as reported for
the following August 20, 2001 (equalization date). So the base year 2001-2002 assessed
value for the Edgewood Project would be the value on the roll as of January 1, 2001.
The Project is not likely to generate any notable tax increment in the first year, More
specifically, the first years tax increment would be limited to only the growth in assessed value
Schedule memo2.doc;
To:Susan Arpan April 24, 2001
Subject:Project Adoption Schedule Page 2
from January 1, 2001 to January 1, 2002. The current (2000-2001) assessed value of the
Project Area is $4,888,915. Assuming a two percent growth as provided by Proposition 13
inflationary value growth, the first year tax increment from the Project Area would be $978 of
which the Agency would receive approximately 80% or $782 with balance being distributed to
the affected taxing agencies. As a side note, 20% of the $978 or $196 would have to be
allocated to-affordable housing. Therefore, the first year discretionary funds would be limited
to $625.
Please call if you have any questions or if we can be of further assistance.
Schedule merno2.doc; pa
EDGEWOOD PLAZA REDEVELOPMENT PROJECT
Palo Alto
March 2002 Adoption
Document Draft Staff Final Planning Finance Agency City
Review Commission Committee Council
Agency Formation 5/11/01 5/25/01 6/1/01 6/12/01 6/18/01
Survey Area 5/11/01 5/25/01 6/1/01 6/12/01 6/18/01
Preliminary Plan 5/25/01 6/8/01 6/15/01 6/27/01 7/10/01 7/23/01
Redevelopment Plan 9/25/01 10/9/01 10/16/01 (see below)10/23/01 11/5/01
O.P. Rules 9/25/01 10/9/01 10/16/01 10/23/01 11/5/01
Preliminary Report 9/25/01 10/9/01 10/16/01 !0/23/01 11/5/01
Draft El R 9/25/01 10/9/01 10/16/01 10/23/01 11/5/01
Report to Council 1/4/02 1/18/02 1/25/02 2/12/02 2/18/02 2/18/02
Final El R 1/4/02 1/18/02 1/25/02 2/12/02 2/18/02 2/18/02
EIR
NOP/Initial Study trans.7/23/01
NOP comments due 8/22/01
(30 days)
Draft EIR Received 11/5/01
Review Period (45 days)11/7-12/21
Optional Public Hearing 12/10/01
Final EIR 1/4/02
Agency Approval 3/25 or 4/1/02
Planning Commission
PC Receipt of Plan & EIR 11/14/01
Report and Recommendations 12/12/01
(30 days)
Taxing Agencies
33327 Notices Sent 7/24/01
1st Fiscal officers report (60 days)9/4/01
EIR transmitted 11/6/01
Preliminary Report transmitted
Consultations 11/7-
3~25~02
Community Advisory Committee
Council Appoints Advisory Committee
Advisory Committee holds monthly meetings
(1st Tuesday)
Community Mtg Notice Sent (10 days prior )
Community Mtg Notice Published (10 days prior)
Community Information Meeting on Plan
Advisory Committee adopts recommendations
6/25/01
7/3, 8/7, 9/4, .
10/2, 11/6, 12/4
10/26/01
10/27/01
11/6/01
12/4/01
Hearing
Agency & Council Consent
Notices Mailed (30 days before hearing)
Notices published (4 weeks before hearing)
Joint Public Hearing (1= reading no written
objections)
1st Reading with written objections
2na Reading no written objections
2na Reading with written objections
Plan becomes effective (30 days) from 4/8
End of 60 day challenge period (33500) from 4/8
2118/02
2/22/02
2/25, 3/4,
3111,3/18
3/25/02
4/1/02
4/1/02
4/8/02
5/8/02
6/7/02
*two week lead time for Council actions ** Council is on vacation from August to mid- Sept
City Council/Agency meets every Monday except 5th Monday
Finance Committee meets 2nd and 4th Tuesdays
Planning Commission meets 2nd and 4th Wednesdays
4/25/01