HomeMy WebLinkAbout15-Economic Development Agency
.
FROM:
DATE:
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
Maggie Pacheco
Deputy Director
SUBJECT:
ELIMINATION OF DEBT LIMITS FOR
NINE (9) REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REDEVELOPMENT PROJECT AREAS
November 4, 2003
ORIGINAL
Svnopsis of Previous Commission/Council/Committee Action(s):
On , October 9, 2003, Redevelopment Committee Members Suarez and Estrada voted to recommend that the Mayor and
Common Council consider this action for approval.
Recommended Motiou(s):
MOTION A:
MOTION B:
MOTION C:
MOTION D:
MOTION E:
MOTION F:
MOTION G:
MOTION H:
MOTION I:
MOTION J:
(Mavor and Common Couucil)
STATE COLLEGE
AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE STATE COLLEGE
REDEVELOPMENT PROJECT AREA
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE STATE COLLEGE REDEVELOPMENT
PROJECT AREA
CENTRAL CITY NORTH
AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY
NORTH REDEVELOPMENT PROJECT AREA
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE CENTRAL CITY NORTH
REDEVELOPMENT PROJECT AREA
CENTRAL CITY WEST
AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE CENTRAL CITY
WEST REDEVELOPMENT PROJECT AREA
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE CENTRAL CITY WEST
REDEVELOPMENT PROJECT AREA
SOUTHEAST INDUSTRIAL PARK
AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE SOUTHEAST
INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE SOUTHEAST INDUSTRIAL PARK
REDEVELOPMENT PROJECT AREA
NORTHWEST
AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE NORTHWEST
REDEVELOPMENT PROJECT AREA
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE NORTHWEST REDEVELOPMENT
PROJECT AREA
COMMISSIO
#/5
1J./'103
P:\Agendas\Comm Dev Commission\CDC 2003\03-11.]7 Elim Debt Limits Project Areas SR.doc
M.
Agenda It
Recommended Motion(s) Continued:
(Mavor and Common Council)
TRI-CITY
MOTION K: AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE TRI CITY
REDEVELOPMENT PROJECT AREA
MOTIONL: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE TRI CITY REDEVELOPMENT PROJECT
AREA
SOUTH VALLE
MOTION M: AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE SOUTH VALLE
REDEVELOPMENT PROJECT AREA
MOTIONN: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE SOUTH VALLE REDEVELOPMENT
PROJECT AREA
MT. VERNON
MOTION 0: AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE MT. VERNON
REDEVELOPMENT PROJECT AREA
MOTIONP: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE MT. VERNON REDEVELOPMENT
PROJECT AREA
UPTOWN
MOTION Q: AN ORDINANCE OF THE CITY OF SAN BERNARDINO ELIMINATING THE DEBT
INCURRENCE DEADLINE FOR THE REDEVELOPMENT PLAN FOR THE UPTOWN
REDEVELOPMENT PROJECT AREA
MOTION R: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ELECTING THE STATUTORY PASS-THROUGH PURSUANT TO HEALTH
AND SAFETY CODE SECTION 33607.7(b) FOR THE UPTOWN REDEVELOPMENT PROJECT
AREA
-----------~-------~---_.._-_._---_._---_._-----------------------------------------------------------------------------------------------------
Contact Person(s):
Maggie Pacheco
As Noted in Staff Report
Pbone:
(909) 663- I 044
All
Project Area(s)
Ward(s):
Supporting Data Attached: 0 Staff Report 0 Resolution(s) D Agreement(s)/Contract(s) D Map(s) 0 Letters
FUNDING REQUIREMENTS Amount: $
Source:
SIGNATURE: L) }Y(&~ __00'
\". Gary V n Os el, Executive Director
Commission/Council Notes:
P;\Agendas\Comm Dev Commission\CDC 2003\03-1 ].17 Elim Debt Limits Project Areas SR. doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2003
Agenda Item Number: -137
.
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
n_____________________________________________________-----------------------------------------------------------------
Elimination of Debt Limits for Nine (9) Redevelopment Al!encv
of the CIty of San Bernardino Redevelopment Proiect Areas
BACKGROUND/CURRENT ISSUE:
The Agency has twelve (12) approved Redevelopment Project Areas. All of which have specific
mandated restrictions and limitations in accordance with California Redevelopment Law (CRL).
These limitations include, but are not limited to; time limit on length of the Project Area Plan
(effectiveness date on the redevelopment plan), time period to collect tax increment to repay debt, the
power of eminent domain (12 years from plan adoption), limit on the amount of tax increment it can
receive over the life of the Project Area and the time period on the amount of bonded indebtedness
that can be outstanding at anyone time, and last but not least, the time limit to incur debt. Of the
twelve Redevelopment Project Areas, Staff has determined that nine (9) of those Redevelopment
Project Areas should be amended to eliminate the debt incurrence time limit, which is the subject of
this Staff Report. Following are these nine (9) Redevelopment Project Areas: State College, Central
City North, Central City West, Southeast Industrial Park, Northwest, Tri-City, South Valle and
Uptown. The ability to incur debt for these Project Areas expires in January I and July 9, 2004 and
in Mt. Vernon on July 11,2010 (see column D in chart below).
The time limit to incur debt is important because tax increment financing is based upon the Project
Area being in debt; furthermore the Project Area must have outstanding debt in order to collect tax
increment revenue (both total debt and annual debt payments). The manner in which the Agency
discloses all of its debt is by filing annually with the County of San Bernardino a Statement of
Indebtedness (SOl) for each of its Project Areas.
In order for the Agency to be able to claim new debt after January I, 2004 and 2010 for its Project
Areas, it is necessary for the Agency to extend the time frame in which to incur debt. Accordingly,
SB211 of the CRL was adopted in January 2002 by the State Legislatures in order to allow agencies
time in which to extend the time frame in which to incur debt to correspond with the Project Area
duration (effectiveness date or termination date of the Plan). The following chart illustrates the
Project Areas that would be extended to conform to the limits established under AB211 :
--------------------------------------------------------------------------------------------------------------
P:\Agendas\Comm Dev Commission\CDC 2003\03-11-17 Elim Debt Limits Project Areas SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2003
Agenda Item Nnmber:
RJ1
.
Economic Development Agency Staff Report
Elimination of Debt Limits for Nine Project Areas
Page 2
Summary of Project Area Limitations
Proposed SB211 Debt Time Limit Amendment
A B C D E F G
Project Area Time Limit Limit on Proposed
Duration ort Receiving Time Limit Limit on Total Amount of SB2 n Change -
(Effectiveness Tax Increment to Incur Debt Total Dollars of BondedDebt Time Limit
Project Areas Date of Plan) (to Repay Debt) (Existing) Tax Increment (at Any One Time) to Incur Debt
State College April 27, 2010 April 27, 2020 January I, 2004 1.75X Annual Max $60 Million April 27, 2010
Central City North August 6, 2013 August 6, 2023 January I, 2004 1. 75X Total Debt $40 Million August 6, 2013
Central City West February 17, 2016 February 17, 2026 January I, 2004 1.75X Total Debt $5 Million February 17, 2016
Southeast Ind Park June 21, 2016 February 17, 2026 January 1, 2004 1.75X Total Debt $60 Million June 21, 2016
Northwest July 6, 2022 July 6, 2032 January I, 2004 $4.5 Million per Yr $35 Million July 6, 2022
Tri-City July 20, 2023 July 20, 2033 January I, 2004 $60 Million $18 Million July 20, 2023
South Valle July 9, 2024 July 9, 2034 July 9, 2004 1.75X Total Debt $14 Million July 9, 2024
Mt. Vernon June 25, 2030 July II, 2040 July II, 2010 $950 Million $100 Million June 25, 2030
Uptown July 18, 2026 July 18, 2036 January I, 2004 1.75X Total Debt $20 Million July 18, 2026
The proposed SB211 Plan Amendment will change the time limit to incur debt for each of the Project
Areas as noted in colunm G. SB211 Plan Amendment will not impact those taxing agencies that have
pass thru agreements in place to share tax increment revenue with the Agency; but for those agencies
(which includes the City of San Bernardino) that do not presently have a pass thru agreement, the
Agency, under SB211 is mandated to share in the new tax increment revenue (the year following the
original debt time limit, i.e., 2004/2005). After fiscally reviewing the mandatory pass thrus, Staff has
determined that it would be beneficial for the Agency to amend the time frame to incur debt as noted
above; otherwise, the Agency would be unable to enter into new disposition and development
agreements or owner participation agreements with development partners whereby the Agency shares
in the new tax increment growth as a result ofthe new project.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
Without a Plan Amendment for each of the Project Areas, after January 1, 2004 and July 11, 2010,
the Agency will be unable to claim any new debt on the SOl; thus impacting the Agency's ability to
consummate new business deals and to claim Agency administrative costs, thereby impacting the
amount of tax increment the Agency receives for each Project Area noted above.
P:\Agendu\Comm Dev Commission\CDC 2003\03-11-17 Elim Debt Limits Project Areas SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/]7/2003
Agenda Item Nnmber: ~ 11
,r'
Economic Development Agency Staff Report
Elimination of Debt Limits for Nine Project Areas
Page 3
RECOMMENDATION:
That the Mayor and Common Council adopt the attached Ordinances and Resolutions.
~
"
P:\Agendas\Comm Dev Commission\CDC 2003\03-] 1-17 Elim Debt Limits Project Areas SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2003
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v
To Whom:
Yes
No
Date: