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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.