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HomeMy WebLinkAbout10/25/1997 Minutes - Jt. Meeting with RDACITY OF DIAMOND BAR AND DIAMOND BAR REDEVELOPMENT AGENCY TOWN HALL MEETING OCTOBER 25, 1997 1. CALL TO ORDER: Mayor Huff and Redevelopment Agency Chairman Werner called the meeting to order at 9:00 a.m. in the Golden Springs Elementary School Multi -Purpose Room, 245 Ballena Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Council/Agency Member Ansari. Present: Council Members Ansari, Harmony, Werner, and Mayor Huff. Present: Agency Members Ansari, Harmony, Vice Chairman Huff and Chairman Werner. Also present were: Terrence L. Belanger, City Manager/Executive Director; James DeStefano, Deputy City Manager, Frank Usher, Deputy City Manager and City Clerk Lynda Burgess/Agency Secretary. 2. WELCOME AND INTRODUCTION: Mayor Huff and Chairman Werner welcomed attendees. 3. OVERVIEW OF REDEVELOPMENT: CM/ED/Belanger reported this was the third in a series of five City Council Town Hall meetings on the subject of redevelopment. Tentative dates had been set for future meetings to be held on Saturday, November 22, 1997 in the Castle Rock Elementary School Multi -Purpose Room and Saturday, December 20, 1997, at 9:00 a.m. in the South Coast Air Quality Management District Auditorium. CM/ED/Belanger defined redevelopment as a process that makes available financial_ resources to eliminate or alleviate economic and physical blight. Financials resources are derived by receiving a greater percentage of incremental increases in property taxes collected from property owners within; a project area. He explained the process using graphs to show the current allocation- of property tax monies. He further explained that these calculations do not 'affect the City's residential property which lie outside the Project Area. The Redevelopment Agency and the Project Area Plan were both formed under Assembly Bill 1290 which came into effect in 1994. Under this law, the Redevelopment Project Area will have 20 years to incur debt, 30 years to implement its plan and 45 years to pay off its debt. The Project Area is comprised of all of the commercial and industrial areas together with the ,major thoroughfares which connect them within D.B. The project area is'expected to spin off $404,000,000 in tax increment, the OCTOBER 25, 1097 TOWN HALL MEETiNlG difference between the base year ckalNulation and natural increases in property tax. `fhe i^ Redeve:oprcicnt Agency dry not possess the I;YPIGV authority to increase propnn ly taxct,'.. `1 h€.: Agency is projected to receive $163,000,000 owy the life of q ic=y prcjr ct area for nonhousing activities (commercial and indu.Strial rryh; iliti �tic�;�, husiness attraction and retention, parking improverlehts and I,;,� ail;,: ii Ei� ; : ur; urc' imprr�vements). nearly $81,000,000 is se -i; a:�3idzefor low arta moderate income housing acti ities (housing loads, housing g�ani�f�, leans, etc). One o the important next steps of t; ic p, r;j:;art ares is W begin tho planning proce s for the commercial aril industrial rehabilitation program, for the business expansion and retention program, for a parking improvements program, for the public improvement:; and facilities program and for the housing set-aside program. All of these programs are required to be created and must be created according to the law' and reviewed on a regular basis through the public hearing process-. Al Rumpilla expressed concern that there will be a "balloon payment" at the end of the 45 -year period_ and suggested the City consider a 10 -year redevelopment plan rather,than.'a 45 -year redevelopment plan. CM/ED/Belanger explained that the nature and extent of the activities in the project area and the length .of time required to complete the activities are determined by the City Council, Redevelopment Agency Board of Directors'�� and the community. The Agency may choose to not use the maximum 45 years allowed by redevelopment law to retire debt. He explained that the economic dysfunction suffered by D.B. is a result of approximately 27 ,years of the County's planning decisions prior to city -hood. Redevelopment provides an opportunity for the City to determine its destiny. In response to Grace MacBride, CM/ED/Belanger stated that the law requires that 20% of the increment generated from the project area be set aside for low and -moderate income housing activities such as first-time homebuyer loans, rehabilitation loans, etc. The idea is to make resources available to qualified individuals that allow them to compete . in the 7 marketplace. He further explained that the community, under redevelopment, is not required to build anything - it is required to provide l programs that would facilitate low and moderate income housing improvement. D.B. residents who qualify based on their income would,most likely use redevelopment funds to improve their homes. rx Martha Bruske reiterated that the City has a poor track record with respect to public hearings. She asked for clarification regarding the inclusion of residential units in the project area. She again asked if the City has information about why businesses leave the community and expressed concern that redevelopment monies will be loaned to non-residential building owners who will use the money to refurbish their buildings and then raise rents which will cause more business tenants to leave the city. She asked 1 7T ------- --- -- i ,1-: 'GBER 25, 1997 4 OWN HAIL MEE'rING for a clarification of low income housing and how it works through redevelopmeni In relationship to the Gener�-.1 rlian'F {dousing Element. CM/ED/Belanger responded blat, udder red.C.A,�;9opment, low and moderate activities are by income € nd no -t by xoning es sat forth in the City's General Plan. F=le explained haw a w61�ofi; ied redeveloprtient plan facilitates bath building rehabilitation and lessee lousiness retention. C/AtAA/Ansari asked whai guarantees the City has that building owners who enter into a redevelopment agreement will not raise the: lease rents. CM/ED/Belanger responded that this is accomplished through owner participation agreement contracts. Mrs. MacBride asked whether the building owner can increase the rent to any amount he/she deems appropriate if a current tenant vacates. CM/ED/Belanger explained that it depends upon the agreement reached between the Redevelopment Agency and the building owner. In response to Allan Wilson, CM/ED/Belanger explained that, with respect to apparent dollar discrepancies between what the City adopted in July and what is presented in today's report, the original report to Council used numbers available at the time the report was prepared. The Supplemental Report to the City Council is based upon more up-to-date property tax estimates from the County. Joe Ruzicka stated that there has been an assertion made that the Redevelopment Agency is a massive corporate welfare plan which will defer $300 million of our property taxes to subsidize low income housing and businesses. How does that square with what the charts show as the Agency's maximum bonding capacity? CM/ED/Belanger responded that the assertion is not accurate. The Redevelopment Agency will receive, in both non -housing and housing monies, $263 million which will be retained in the community for activities that the community wishes to spend it on. The only right the City has to any of the $263 million that is being discussed would be the 2.9% it would receive as a part of its property tax allocation. Instead of the $17 million the City would ordinarily receive over a 45 year period without redevelopment, it will receive $263 million through the Redevelopment Project Area which encompasses only 10.57% of the entire community. In response to Mrs. MacBride, CM/ED/Belanger reported that if you improve your home and the value increases, the County will reassess your property whether or not you use redevelopment resources. OCTOBER 25, 1997 NAGE: to TOWN HALL MEETING C/AM/Harmony asked if the $300,000,000 would be corning from the City's overall tax pool whioh would. rc ,ult ire !css services for the entire City. Ho asked how redev fuprrient will sulve. the multiple ownership prublerms currently existing in the City's commprciai retail center. What about strip zoning a:: m,,7:ntione ire fl ie Pian? How will redevelopment money impact the regional emcnorny? ; kjvw does redevelopment change the fact that D.B. residents usually shop outside the City at big box shopping areas? CM/ED/Belanger ex;:lained that, with respect to the assertion that $300,000,000 will reduce fire, police and library services, the City and the other agencies can expect an increase in the amount of funds they will receive under the plan. He indicated that there tends to be common area problems and lack of - improvements with multiple ownership: Redevelopment allows the City to be a player in creating incentives for owners to improve their property and make it a more attractive environment for residents to shop,and to create an atmosphere conducive to attracting new businesses. Redevelopment Law will not allow a project area unless a finding can be made that such activity will not occur except for redevelopment. How does redevelopment respond to strip zoning? The community will use redevelopment to render strip centers more functional. The results of poor zoning decisions made by the County for which D. B. had no input cannot be eliminated due to existing topographically prescribed land uses. How does redevelopment respond to the regional economy? If a community wishes to be in the marketplace, it needs to place itself in a position where it can compete. Redevelopment, which has been used by all surrounding communities for some time, affords an opportunity for this community to compete for businesses to locate in D.B. The community has an extraordinary amount of consumable income available which leaks to other communities. D.B. needs to find its market niche, capitalize on that niche and make its current centers more attractive. CM/ED/Belanger confirmed C/Chair/Werner's statement that in order for residential improvements to affect a homeowners property value, the homeowner would need to add square footage to the home which would result in adding value to the property. Simple home improvements would not result in additional valuation. In response to Mrs. MacBride, CM/ED/Belanger stated that the Redevelopment Agency will not report individual loan information to the County. Expansion of square footage is reported as a consequence of obtaining building permits and not as a function of a loan. Steve Tye asked how redevelopment could have been utilized to keep an employer like Avery Dennison .in the City rather than being attracted to Brea. CM/ED/Belanger stated that D.B. had no opportunity to respond to an Avery OCTOBER 25, 1997 P ;E 6"°' ye>,e. TOWN HALL MEETING Dennison proposal because the community dict' not have a Redevelopment w� Plan. Tvvo years ago, Avery Dennison expressed an interest in expanding and bringing in more divisions into a singly: location of approximately 150,000 sq. fit. and indicated they wished to bo located at this end of SN 57. At that time, the only viable properties wore- located within in the Gateway Corporate Center. However, the�c was nu mo6ianism in place in D.B. to offer them incentives. Because it had a Redevelopment Agency, the City of Brea was able to move quickly to offer Avery Dennison the package they sought. Steve Tye asked how redevelopment can help attract retail business such as Long's. CM/ED/Belanger responded that the City, through redevelopment, can assist a partnership between commercial property owners and retail business owners. Jack Gutowski said the AQMD and Avery Dennison does not generate sales tax for Brea. D.B. is a bedroom community. He asked how CM/ED/Belanger sees the community in 10 years. j CM/ED/Belanger explained that the vitality of a community amounts to more j than sales tax. Sales tax is important because the State has made it important. One of the problems this City has in attracting other restaurants to this community is a lack of lunchtime population. AQMD and Avery Dennison provide payroll to this City. If a community cannot depend on its residents to provide this payroll, it at least needs to attempt to have the people who work in the town patronize local businesses. AQMD brings a lot of people to this community in spite of the fact that it pays neither sales tax nor property tax. Residents need to get involved in the process and determine what they wish their City to look like. 85% of this community is developed. The General Plan defines the current existing commercial areas_ Mrs. MacBride indicated that the parent company of Boston Market and Starbucks would like to relocate to D. B. but want to own their own property. She asked if redevelopment could assist them in razing the First Interstate building at the northeast corner of D.B. Blvd. and Grand Ave. CM/ED/Belanger responded that whether or not redevelopment could assist them depends on the amount of money the business might generate for the community. ( Stephen Campbell asked what the $45,000,000 set aside for public use means. CM/ED/Belanger explained that public use funds are set aside for major OCTOBER 25, 1997 PAGE 6 TOWN HALL MEETING roadway and streetscape improvements to render the commercial area environments more inviting. These funds cannot be used to build a City Hall iqy �! or County facility. However, other public buildings such as a community center, library, etc. can be created to benefit the project area. Mike Goldenberg asked Mr. harmony to please show the community how and where the Redevelopment Agency indicates that big box development will take place, to explain the backroom deals that he accuses others of doing, how he reaches the conclusion that redevelopment will increase crime and taxes, and how he defines lockstep voting and boondoggle. C/AM/Harmony responded that anyone interested in receiving facsimiles containing statistics and data can call him at 861-0161. He said that the Diamond Bar Residents and Business Owners Association newspaper explains all of this. Mr Goldenberg asked CM/ED/Belanger about the $300,000,OOq Mr. Harmony mentioned. CM/ED/Belanger responded that the figure is $263,000,000. All property taxation is a function of State law. Any changes to property taxation require a vote of the people. Any increase in valuation of property is a function of market forces or the 2% inflation factor set forth by law. C/AM/Harmony asked for an explanation of the lost $300,000,000 revenue and where the County, fire department, liprary make up for this money if they don't cut services. CM/ED/Belanger again explained Redevelopment Law. Mr. Goldenberg asked if more crime is anticipated due to the Redevelopment Agency creating a Plan. CM/ED/Belanger stated that crime is more related to the lack of business as opposed to the existence of business activity. The more vital and patronized these business become, the less likely,there will be the kinds of crime mostly likely found in D.B. Mr. Goldenberg said big box development keeps coming up as an issue in D.B. Where and how in D.B. would the City utilize big box development. CM/ED/Belanger repeated his statement that the City will not be able to attract big box development without the instrumentality of redevelopment and redevelopment law prohibits big box development. There is not a single 50,`'a acre parcel of land in D.B. that would accommodate big box shopping malls. You will not find that the City's Redevelopment plan contains any indication OCTOBER 25, 1997 PAGE 7 TOWN HALL MEETING that the Agency has an interest in creating those types of commercial areas. The focus is cn rehabilitation and retention of existing businesses. Martha Etruske appreciated Mr. Belanger's explanations regarding redevelopment. She asked how D.B. would prevent businesses from moving from one local:i*n to another within the City. She expressed concern about proposed commercial development indicated on the Redevelopment Map at the corner ofCarpio Dr. and Golden Springs Rd. She found it difficult to support redevelopment with that kind of planning evident. CM/ED/Belanger responded that the area of Carpio Dr. and Golden Springs Rd. is not zoned commercial. He was not aware of any proposal that the City has that would suggest a 7-11 on that corner. In addition, that particular corner is a public easement and it is difficult to imagine that the property could be developed in any fashion. It is in the Project Area Map because of potential infrastructure problems. 4. WRAP UP AND NEXT MEETING PLAN: C/AM/Harmony stated that no answer was given regarding citizen participation and whether the blue ribbon committee that was brought in had made any changes and whether or not they were accepted in the plan. There is no specific plan for this Redevelopment Agency. There's no blight in D.B. He said the City is trying to develop a Redevelopment Agency that cannot prove blight under the legal -� terms. He stated that $300,000,000 taken out of the taxing structure reduces services. Further, there is no safety in the City's zoning codes or in the General Plan. He talked about current and previously approved residential construction projects. C/AM/Ansari said that there were problems and issues with redevelopment prior to Assembly Bill 1290. She favored a citizen participation overview committee formed for the Redevelopment Project Area. D. B. currently gets back $.0529 on every property tax dollar paid, the lowest return in the County. Businesses are suffering and vacancies abound. Chair/Werner said he is committed to protect the tax revenues, resources and services of this City. The Redevelopment Agency will allow the community to capture the tax revenues generated by the City's commercial properties - 10% of the community - to spend as it wishes to benefit the community. He spoke about the opportunities available in the Gateway Corporate Center and the opportunity to create a downtown civic/cultural center. Chair/Werner thanked the Town Hall Meeting participants. 5. ADJOURNMENT: There being no further business to conduct, the meeting was adjourned at 12:00 noon. OCTOBER 25, 1997 ATTEST: / ayor'� PAGE 8 TOWN HALL MEE!"ING V a� LYNDA BURGESS, City Cierk. and Redevelopment ACpncy ',-"'ecretary Re velo nt Agency A�Chaiirman I I