HomeMy WebLinkAbout2001-09-20 City CouncilCity of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTN:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: CITY MANAGER
DATE:September 20, 2001 CMR: 348:01
SUBJECT: REDEVELOPMENT AGENCY UPDATE
This report provides background for various actions that will be taken within the next
several months to adopt the Redevelopment Plan for the proposed Edgewood Plaza
Redevelopment Project.
BACKGROUND
On July 9, 2001, the Palo Alto City Council passed and gave first reading to an ordinance
declaring the need for a redevelopment agency in Palo Alto. The Council also declared
the City Council to be the Redevelopment Agency (the Agency) and made the finding
that the formation of a redevelopment agency "will serve the public interest and promote
the public safety and welfare in an effective manner" according to the Health and Safety
Code section 33200.
Staff was directed to return to the City Council upon formation of the Agency (following
a second reading on July 23, 2001) with documents and actions necessary to organize and
operate the Agency. On September 19, 2001, Edgewood Plaza will be recommended to
be designated as a Survey Area as well as procedures for adoption of the Redevelopment
Plan. Staff will also recommend formation of an informal Neighborhood Advisory
Committee (NAC).
DISCUSSION
In order to facilitate a clear understanding of the procedures and actions necessary to
adopt the Redevelopment Plan by Spring 2002, staff has prepared a four point
implementation plan that groups and summarizes the main actions required by the
Council, Agency and Planning Commission prior to the adoption of the Redevelopment
CMR:348:01 Page 1 of 4
Plan. Since many of the terms in this report are specific to redevelopment law and
procedures, Attachment 1 is a brief summary of redevelopment definitions.
The four primary actions necessary for the Redevelopment Plan adoption, including the
time frame and schedule for submission of staff reports, are identified in the table below:
Action
1. Agency formation
becomes effective; City o
Council designates Survey
Area by resolution;
Agency adopts formation
documents; NAC is
formed
2. City Council by
resolution adopts
Cooperation Agreement
between City and Agency;
Planning Commission
adopts Prelim. Plan by
resolution that includes a
legal description of
Project Area. Agency
adopts resolution
receiving Prelim Plan_
Agency adopts resolution
receiving and approving
circulation of Draft EIR,
draft Plan and draft Owner
Participation (OP) Rules,
also by resolution.
Agency adopts Prelim.
Report and authorizes
circulation.
4. Agency by resolution
adopts Report on
Redevelopment Plan
(includes final EIR) and
consents to hearing; City
Council by resolution
receives Report to City
Council and sets Heari.u~.
REDEVELOPMENT
PLAN ADOPTION
Finance
Committee
Finance
Committee
October
2001
December
2001
Pla.nin~
Commission
October 2001
(Planning
Commission
adopts
Preliminary Plan)
December 2001
City, Council
September 200i
(Adopts survey
area)
November 2001
Council adopts
Cooperation
Agreement
between City and
Agency
Redevelopment A~encv
September 2001
(Agency adopts formation
documents)
November 2001
Agency receives
Preliminary Plan and sets
base year
January 2002
Agency receives and
authorizes circulation
Draft Plm~ Draft OP
Rules and Draft EIR:
Agency also adopts
Preliminary Report and
authorizes circulation.
March 2002 Agency
adopts resolution
approving Report to
council and consents to
March 2002 City
Council adopts
resolution
receiving Report
on Redevelopment
Plan and sets
hearing date
joint hearing
Finance
Committee
considers
Report to
Council
February
2002
Planning
Commission
adopts report and
recommendations
February 2002t
SPRING 2002 SPRING 2002
CMR:348:01 Page 2 of 4
Following formation of the Agency, Council designates the Survey Area (Edgewood
Plaza Project Area) by resolution. The boundaries of the Survey Area are generally
defined for inclusion in the redevelopment project. The city Manager appoints the
Neighborhood Advisory Committee (Attachment 2) comprised of local residents,
Edgewood Plaza business tenants, residents of the Eichler residential community, a
property owner representative, a Chamber of Commerce representative and a Palo Alto
Planning Commission member (chosen by the Planning Commission). The NAC will
meet on a monthly basis until the Plan is adopted and will provide input, and advice in the
development of the Plan for the Edgewood Plaza kedevelopment Project (Project).
In October 2001, staff will return to the City Council for approval and authorization to
execute the Cooperation Agreement between the City and the Agency. Following this
action, the Preliminary Plan will go to the Planning Commission for approval. The Plan
will provide a general framework for the preparation of the Redevelopment Plan and sets
the base year for the Project Area for the purposes of collecting tax increment for 2001-
2002. Prior to the adoption of the Redevelopment Plan, the Planning Commission
makes a report that confirms that the Redevelopment Plan conforms to the
Comprehensive Plan.
The third set of actions to be taken will be to receive the Draft Environmental Impact
Report, draft Redevelopment Plan, the draft Owner Participation and Preference Rules
(O.P. Rules) and authorize their availability for public review and circulation. At the
same time the Preliminary Report (which provides the taxing agencies information on
the project) will be adopted and authorized for circulation. These actions are targeted for
a January City Council meeting and will all be taken by the Agency.
The Preliminary Report includes the blight and financial feasibility findings. The
primary purpose of this document is to provide information to the taxing agencies on
possible impacts of the Project. The taxing agencies along with other responsible
agencies will also review the draft EIR for a 45-day period as prescribed by state law.
During this time, staff will hold a community meeting to discuss the proposed Project to
allow interested parties to comment on the Project.
The final actions taken by the City Council acting as the Redevelopment Agency prior to
Redevelopment Plan adoption include adoption of the Owner Participation Rules and
adoption of the Report on the Redevelopment Plan developed by the City’s outside
contractor. This meeting will take place in March 2002. The Report to the City Council
will contain the components of the Preliminary Report plus a summary of the actions
CMR:348:01 Page 3 of 4
taken during the adoption process. The Agency and the City Council will then hold a
joint public hearing on the Redevelopment Plan. The notice of the hearing is published in
the newspaper for four consecutive weeks and Project Area owners and occupants are
mailed notice 30 days in advance. Finally, the City Council adopts the ordinance
¯ approving the Redevelopment Plan and related actions, including making findings on the
final EIR.
PREPARED BY:
Su~t,,~l~t,x, Economac esources Planning Manager
Assistant City Manager
CMR:348:01 Page 4 of 4
Attachment
Redevelopment Definitions
Cooperative Agreement- is a general agreement between the Redevelopment Agency and the
City Council acting on behalf of the community to give the newly formed Agency financial
and personnel assistance, use of facilities, ~and other aid and may be used to establish Agency
indebtedness required to obtain tax increments.
Environmental Impact Report-is a detailed informational document prepared by the public
agency that describes and analyzes a project’s significant environmental effects and
discusses ways to mitigate or avoid those effects.
Neighborhood Advisory Committee-is a committee composed of neighbors, neighborhood
association representatives, business tenants, property owners, a chamber representative and
other interested parties who will comment and advise on the preliminary plan.
Owner Participation and Preference Rules- are the rules adopted according to California
Redevelopment Law that extend reasonable preference to persons who are engaged in
business in the project area to participate in the new development if they otherwise meet the
requirements of the redevelopment plan.
Preliminary Plan-is a plan that defines the boundary of the Project Area that was generally
outlined in the Survey area. It also provides a general framework for the drafting of the
Redevelopment Plan.
Preliminary Report-is a report that provides the taxing agencies information on the project.
The taxing agencies receive the Preliminary Report and Draft EIR so that they can evaluate
impacts on their services or revenues.
ProjectArea-is the specified area that is the subject of the redevelopment plan. In Palo Alto,
this would be Edgewood Plaza and the adjoining public right-of-way.
Project Area Formation-is the process by which the City Council and Redevelopment
Agency legally designates a specified area as the Project Area.
Redevelopment Agency-is a public, body that exercises governmental functions and has the
powers prescribed in the Community Redevelopment Law. It is composed of either the
legislative body of the community or members appointed by the legislative body. In Palo
Alto, the City Council will serve the governing board of the Agency.
Redevelopment Agency Formation- is the process of establishing the legal framework for
the City to function as a redevelopment agency.
Redevelopment Plan-is the plan for the improvement, rehabilitation and Redevelopment of
blighted areas authorized by the Community Redevelopment Law.
Redevelopment Report-is a report to City Council prepared by the
Redevelopment Agency on a proposed redevelopment-plan that provides, among
other things, evidence of the blight within the proposed project area and the
proposed fmancing for the project.
Report on the Redevelopment Plan-is a required report that accompanies the
Redevelopment Plan submitted by the Agency to the City Council. It contains all
of the components of the Preliminary Report plus and implementation plan, a
relocation plan, an analysis of the Preliminary Plan, a summary of community
consultation, EIR and a report the by Planning Commission on the conformance of
the Redevelopment Plan with the Genera Plan.
Survey area- is the area identified by resolution as the first planning step to
determine whether a redevelopment project within that area is feasible. This is
important because the final project area for the redevelopment plan must be within
the boundaries of the survey area.
Tax Increments-are the property tax revenues allocated to the Redevelopment
Agency that is generated by the increases in assessed value in the project area after
the establishment of the redevelopment project area.
Attachment 2
Neighborhood Advisor~ Committee ~AC)
The NAC for the Edgew0od Plaza Project Area will have 10-12 members who are
comprised of the following representatives:
¯Three representatives of the Eichler homeowners
¯One property owner representative
¯One Planning Commission Member
¯Three Edgewood Plaza business tenants, one of whom will be a
representative of Albertson’s
¯Two representatives of the surrounding neighborhood, not including the
Eichler neighborhood (St. Francis~uveneck and Crescent Park
neighborhoods)
¯One PA Chamber of Commerce representative
The City Manager will appoint members to the NAC. The committee chair and
vice-chair will be elected by the NAC membership. The purpose of the
NeighborhoodAdvisory Committee will be to provide advisory input to staff and
consultants in the preparation of the project area plan for the Edgewood Shopping
Center. The committee will be disbanded after the legislative body adopts the
Edgewood redevelopment project area plan. During implementation of the Project
Area Plan, the NAC may be asked to convene to provide input and advice as
requested by City staff or the legislative body.
Since redevelopment law does not require the NAC, formation of the NAC will
address the requirement that the City must consult with residents and community
organizations before submitting the redevelopment plan to the legislative body
(33385).
The Manager of Economic Resources Plarming in the City Manager’s Office will
provide staff support to the Neighborhood Advisory Committee. Other City
departments, as appropriate, will participate in committee meetings providing
information and support.
Meetings will be held on a monthly basis, unless more frequent meetings are
required.