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HomeMy WebLinkAboutR4- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY ORIGINAL OF THE CITY OF SAN BERNARDINO FROM: Emil A. Marzullo SUBJECT: Budget Adoption Fiscal Year 2008-2009 Interim Executive Director DATE: July 1,2008 — - - -- -- ----- Synomis of Previous Commission/Council/Committee Action(s): On May 22, 2008, Agency Staff presented the proposed fiscal year 2008-2009 budget to the Redevelopment Committee. No recommendations were made by the Committee. One June 30, 2008, the Community Development Commission adopted a continuing resolution for the fiscal year 2008-09 Budget. --- ------------------------------------------------------------- Recommended Motion(s): Community Deveiooment Commission A: Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's ("Agency") budget for the fiscal year 2008-2009, except for those portions of certain budget lines which are related to the Uptown Redevelopment Project Area. B: Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's("Agency")budget for those portions of certain budget lines which are related to the Uptown Redevelopment Project Area for the fiscal year 2008-2009. C: Resolution of the Community Development Commission of the City of San Bernardino, California, authorizing the funding of various City of San Bernardino fiscal year 2008-2009 public improvement expenditures and making findings and determinations as to the benefit to the various redevelopment project areas for undertaking public improvements in connection with these various City expenditures. Mayor and Common Council D: Resolution of the Mayor and Common Council of the City of San Bernardino, California, authorizing the funding of various City of San Bernardino fiscal year 2008-2009 public improvement expenditures and making findings and determinations as to the benefit to the various redevelopment project areas for undertaking public improvements in connection with these various City expenditures. Contact Person(s): Emil A.Marzullo/Barbara Lindseth Phone: (909)663-1044 Project Area(s): All Ward(s): All Supporting Data Attached: 171 Staff Report 0 Resolution(s)❑Agreement(s)/Contract(s) ❑Map(s)❑ Letters FUNDING REQUIREMENTS: Amount: $ 99,735,452 Source: All Budget Authority: Requested / �! Signature: Fiscal Review: )z_, 6yLL�^( L Emil A.Mar Executive Director Barbara Lindseth,Administrative Services Director Commission/Council Notes: 3 7 a0-08 3 7 .3i ,erg G'�e/ao�P3o� �o�3ii� aca�-3a��oo�-3/ Purges as\CommD Commission\CDC 2008WM7-08 MA Budges Adoption F 08-N SR(Cma).&c ECONOMIC DEVELOPMENT AGENCY STAFF REPORT BUDGET ADOPTION FISCAL YEAR 2008-2009 BACKGROUND AND CURRENT ISSUE: The City of San Bernardino Economic Development Agency's ("Agency") proposed budget for the fiscal year 2008-2009 anticipates resources totaling approximately $99.7 million. Of this total, $53.1 million are redevelopment project area funds, of which $30.5 million are anticipated tax increment revenues, $17.2 million are bond proceeds, fund balance and other transfers in, $400,000 are Brownfield Grant funds, and $5 million are other revenues(interest earnings,note repayments, rent receipts,etc.). In addition, the Agency's proposed budget anticipates $26.2 million in Low and Moderate Income Housing funds, of which $9.3 million are new Low- and Moderate-Income Housing funds from redevelopment project areas (includes $3.2 million anticipated from IVDA), $4.4 million are carry-over bond proceeds, $11.1 million are carry- over Low- and Moderate-Income Housing funds, and $1.4 million are from other revenue sources. Federal funds (Community Development Block Grant, Neighborhood Initiative Program, HOME, Emergency Shelter Grant, Arden Guthrie Section 108, and American Dream Down Payment Initiative), new ($11.2 million) and carry-over ($9.3 million), in the total amount of$20.5 million are expected. An estimated 89% or $88.9 million of the proposed fiscal year 2008-2009 budget encompasses expenditures based upon pervious actions of the Mayor and Common Council of the City of San Bernardino ("Council") and/or the Community Development Commission of the City of San Bernardino ("Commission"), which have anticipated, prioritized, obligated or committed Agency resources concerning bond payments, contract, agreements, projects and programs, and Agency reimbursement or direct payments for City services and/or City expenditures. In anticipation of, and in light of the State's budget deficit, the Agency has also reserved $4.7 million, or approximately 5% of the budget, for any Educational Revenue Augmentation Fund ("BRAF") payment requirement. Thus, approximately 6% of the Agency's proposed budget, or $6.1 million, is available for Agency staffing, administration and operations ($4 million), general consulting, legal, special events, research, demographics and materials($2.1 million). Based upon anticipated revenues and expenditures to balance the Agency's budget, it is projected that approximately $10.4 million of one-time tax increment fund balances will be required, part of which is a $4.7 million reserve for any ERAF shift of funds from redevelopment agencies,and$3 million has been budgeted for the University Parkway interchange. After first ensuring that there are necessary fund balance reserves($12.1 million) for bond payments and other expenditures during the almost six(6)months when the Agency does not receive any tax increment revenues, plus the $10.4 million required to balance the budget, it is estimated that the Agency will have remaining one-time tax increment fund balance carry-overs in several of the redevelopment project areas ($10.7 million), to be reserved for projects and developments following legal guidelines for redevelopment purposes within these redevelopment project areas. Also, in light of the fact that the Agency must annually demonstrate to San Bernardino County debt in all of its redevelopment project areas in order to receive tax increment, it is also prudent to examine and determine the Agency's bonding capacity based upon the estimated $1.8 million that may be available on an annual basis beginning with the fiscal year 2009-2010. However, because it is also anticipated that the Agency's future tax increment will decline,the projected tax increment was reduced by approximately 3% beginning with the fiscal year 2009-2010, which may affect the Agency's bonding capacity if the actual tax increment decline is larger. Finally, the Agency currently has an authorized staffing level of twenty-seven (27) full-time positions and two (2) part-time positions, of which six(6)full-time and one(1)part-time position are vacant. Based upon a reassessment of the Agency's needs, and after evaluation of the consultant's study of the Agency's functions and organization, P\AWndaetCo=De ConuniationTDC2008\07-07-08E A Budge AdoptionF 08-09SA(Cm9).d. COMMISSION MEETING AGENDA Meeting Date: 07/07/2008 Agenda Item Number: Economic Development Agency Staff Report EDA Budget Adoption-FY 2008-2009 Page 2 and subsequent recommendations, a proposed reorganization of the Agency will be brought back for consideration at a future date. In light of the City's anticipated budget deficit, the Agency's proposed fiscal year 2008-2009 budget contains approximately $5.1 million in new and carry-over budget items either providing funding for City services and/or expenditures, forgiving City rent for the 201 North "E" Street building, forgiving City reimbursements to the Agency pursuant to agreements, or transferring Agency golf course funds to the City. Individual components of this approximate $5.1 million in City expenditures/revenue forgiveness are either directly funded by a specific redevelopment project area when the expenditure/revenue forgiveness is directly related to that redevelopment project area, or, when the City service or expenditure is general in nature, divided among the redevelopment project areas that have positive fund balances for the fiscal year or have carry-over fund balances. Since the Central City Projects and Central City North Redevelopment Project Areas are in a projected negative fund balances prior to and with the addition of these City expenditures, it is necessary to transfer funds from other redevelopment project areas in order to fund some City expenditures within these two (2) redevelopment project areas. These City expenditures,which require a transfer of funds, are as follows: 1. COP payment Central Police Dept.building(CCN) $493,700 2. Library Lease Revenue Bond issue payment(CCN) $657,000 3. Police costs related to the Carousel Mall(CCP) $267,100 4. Eliminate all rent to Agency for 201 building(CCP) $197,200 5. Carousel Mall janitorial(CCP) $350,000 6. Carousel Mall security(CCP) $337.500 Total $2302.500 Based upon examination of fund balance availability, and current revenues and expenditures in all of the redevelopment project areas, it is proposed to transfer $714,000 from State College Redevelopment Project Area, $1,174,000 from Southeast Industrial Park Redevelopment Project Area, $184,000 from Tri City Redevelopment Project Area, and $230,500 from Northwest Redevelopment Project Area to the Central City Projects and the Central City North Redevelopment Project Areas. In order to do this transfer, it will be necessary for the Commission and the Council to adopt Resolutions of benefit to these redevelopment project areas. ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: The fiscal impact of the Agency's proposed fiscal year 2008-2009 Budget will be $99,735,452, as outlined in the Staff Report. RECOMMENDATION: That Community Development Commission and the Mayor and Common Council adopt the attached Resolutions. Emil A.Ma ullo,I erim Executive Director P\Agendns\Comm Dev Commission\CDC 2008\07 47-08 MA Budgd Adopfion FY 08-09 SR(Cwl).do COMMISSION MEETING AGENDA Meeting Date: 07/07/2008 Agenda Item Number: 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ECONOMIC DEVELOPMENT AGENCY'S ("AGENCY") BUDGET FOR 4 THE FISCAL YEAR 2008-2009, EXCEPT FOR THOSE PORTIONS OF CERTAIN BUDGET LINES WHICH ARE RELATED TO THE UPTOWN 5 REDEVELOPMENT PROJECT AREA 6 7 WHEREAS, the Community Development Commission of the City of San Bernardino 8 ("Commission") desires to approve and adopt the Economic Development Agency's ("Agency") 9 Budget for the Fiscal Year 2008-2009, except for those portions of certain Budget Lines which are 10 related to the Uptown Redevelopment Project Area. 11 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 12 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 13 FOLLOWS: 14 Section 1. The Commission hereby approves and adopts the Agency's Budget for the 15 Fiscal Year 2008-2009, as attached hereto, except for those portions of Budget Lines 4011, 4012, 16 4019, 4500, 4801, 4900, 5010, 5012 through 5017, 5019 through 5024, 6001 through 6004, 6007 17 through 6012, 6014, 6016 through 6018, 6020, 6021, 6103, 6301, 6306, 6401, 6402, 6500, 6600, 18 6703, 7001 through 7003, 7102, 7302, 7403 and 8003 which are related to the Uptown 19 Redevelopment Project Area. 20 Section 2. This Resolution shall take effect upon the date of its adoption. 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 1 P9Agendas\Pe lutiws@ewiutionsUWSW7-07-M MA Budget Adoption FY 09-09 Roo A(Coot)dm I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE 2 ECONOMIC DEVELOPMENT AGENCY'S ("AGENCY") BUDGET FOR 3 THE FISCAL YEAR 2008-2009, EXCEPT FOR THOSE PORTIONS OF CERTAIN BUDGET LINES WHICH ARE RELATED TO THE UPTOWN 4 REDEVELOPMENT PROJECT AREA 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 6 Development Commission of the City of San Bernardino at a meeting 7 thereof, held on the day of 2008, by the following vote to wit: 8 Commission Members: Ayes Nays Abstain Absent 9 ESTRADA _ 10 BAXTER 11 BRINKER 12 DERRY 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 17 Secretary 18 19 The foregoing Resolution is hereby approved this day of 2008. 20 21 22 Patrick J. Morris, Chairperson Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 25 26 By gency NurlAel 27 28 P:Ugendea\RcvoW[ionsVlesolutions @008\0]-0]-08 FDA Budgtl Adoption FY OS-W Reso A(Cont).doc I RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ECONOMIC DEVELOPMENT AGENCY'S ("AGENCY") BUDGET FOR 4 THOSE PORTIONS OF CERTAIN BUDGET LINES WHICH ARE RELATED TO THE UPTOWN REDEVELOPMENT PROJECT AREA FOR 5 THE FISCAL YEAR 2008-2009 6 7 WHEREAS, the Community Development Commission of the City of San Bernardino 8 ("Commission") desires to approve and adopt the Economic Development Agency's ("Agency") 9 Budget for those portions of certain Budget Lines which are related to the Uptown Redevelopment 10 Project Area for the Fiscal Year 2008-2009. 11 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 12 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 13 14 Section 1. The Commission hereby approves and adopts the Agency's Budget, as 15 attached hereto, for those portions of Budget Lines 4011, 4012, 4019, 4500, 4801, 4900, 5010, 5012 16 through 5017, 5019 through 5024, 6001 through 6004, 6007 through 6012, 6014, 6016 through 17 6018, 6020, 6021, 6103, 6301, 6306, 6401, 6402, 6500, 6600, 6703, 7001 through 7003, 7102, 18 7302, 7403 and 8003 which are related to the Uptown Redevelopment Project Area for the Fiscal Year 2008-2009. 19 20 Section 2. This Resolution shall take effect upon the date of its adoption. // 21 22 23 // 24 // 25 26 27 // 28 1 P WgeMasVtesolutionaVtesdutiona @008W]-0]-0B FDA Budge Adoption FY 08-09 Reao R(ConY).doc I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE 2 ECONOMIC DEVELOPMENT AGENCY'S ("AGENCY") BUDGET FOR 3 THOSE PORTIONS OF CERTAIN BUDGET LINES WHICH ARE RELATED TO THE UPTOWN REDEVELOPMENT PROJECT AREA FOR 4 THE FISCAL YEAR 2008-2009 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 6 Development Commission of the City of San Bernardino at a meeting 7 thereof, held on the day of 2008, by the following vote to wit: 8 Commission Members: Ayes Nays Abstain Absent 9 ESTRADA _ 10 BAXTER 11 BRINKER 12 DERRY 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 17 Secretary 18 19 The foregoing Resolution is hereby approved this day of 2008. 20 21 22 Patrick J. Morris, Chairperson Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 25 26 By: Agency o s 1 27 28 P'.Wpnd es\RmlutionsVloolutions@008\07-07-08 FDA Bu So Adoption FY N-09 Rem B(CoWt).d. I RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE FUNDING OF VARIOUS CITY OF SAN BERNARDINO FISCAL YEAR 2008- 4 2009 PUBLIC IMPROVEMENT EXPENDITURES AND MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT TO THE VARIOUS 5 REDEVELOPMENT PROJECT AREAS FOR UNDERTAKING PUBLIC 6 IMPROVEMENTS IN CONNECTION WITH THESE VARIOUS CITY EXPENDITURES 7 8 WHEREAS, the City of San Bernardino, California (the "City"), is a municipal corporation 9 and a charter city duly created and existing pursuant to the Constitution and the laws of the State of 10 Califomia; and 11 WHEREAS, the Community Development Commission of the City of San Bernardino (the 12 "Commission") on behalf of the Redevelopment Agency of the City of San Bemardino (the 13 Agency"), is a redevelopment agency, a public body, corporate and politic of the State of 14 California, organized and existing pursuant to the Community Redevelopment Law (Part 1 of 15 Division 24 commencing with Section 33000) of the Health and Safety Code of the State of 16 California(the "Act"); and 17 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the 18 Mayor and Common Council of the City (the "Council"), pay all or a part of the cost of installation 19 and construction of any building, facility, structure or other improvement which is publicly owned 20 either within or without the boundaries of a redevelopment project area if the Council determines: 21 (1) that such buildings, facilities, structures or other improvements are of benefit to the 22 redevelopment project area or the immediate neighborhood in which the project is located, 23 regardless of whether such improvement is within another project area, or in the case of the project 24 area in which substantially all the land is publicly owned, that the improvement is of benefit to an 25 adjacent project area of the Agency; (2) that no other reasonable means of financing such buildings, 26 facilities, structures or other improvements is available to the community, and such determination 27 by the Commission and the Council shall be final and conclusive; and, (3) that the payment of funds 28 P.\Ageednsacwlutions\Resolutlons\2008\07-07-08 EDA Budge Adoption FY 0&09 Beso C(C nl)doo 1 for the cost of the facilities, structures or other improvements will assist in the elimination of one 2 (1) or more blighted conditions inside the project area; and 3 WHEREAS, the Council and the Commission have previously approved and adopted 4 Redevelopment Plans (collectively, hereinafter referred to as the "Redevelopment Plans") for 5 various redevelopment project areas within the City, which project areas include: State College, 6 Central City North, Southeast Industrial Park, Northwest, Tri City, and Central City Merged 7 Redevelopment Project Areas; and 8 WHEREAS, it is in the interest of the present landowners within the various project areas 9 subject to the Redevelopment Plans (the "Project Areas") and the residents, both within the Project 10 Areas and within the City generally, that the Agency cause the funding of certain improvements 11 consisting o£ (1) the Agency payment of the COP debt service payment for the Central Police 12 Department building ($493,700) within the Central City North Redevelopment Project Area; (2) 13 payment of certain security costs in the form of contractual committed police officers related to the 14 Carousel Mall ($267,100) within the Central City Merged Redevelopment Project Area; (3) 15 elimination of all rent payments to the Agency otherwise due and payable from the City for those 16 City Departments that are tenants in the Agency owned office building located at 201 North "E" 17 Street ($197,200) within the Central City Merged Redevelopment Project Area; (4) the Agency 18 payment of the Central Library Lease Revenue debt service payment ($657,000) for the Central 19 Library located within the Central City North Redevelopment Project Area; (5) the Agency payment 20 of the Carousel Mall janitorial ($350,000) within the Central City Merged Redevelopment Project 21 Area; and, (6) the Agency payment of the Carousel Mall security ($337,500) within the Central City 22 Merged Redevelopment Project Area (collectively, referred to herein as the "City Funded 23 Improvements"); and 24 WHEREAS, the Central Police Department building, the Carousel Mall, the Agency owned 25 201 North `B" Street building, wherein certain City Departments are tenants including the Code 26 Enforcement Department and the Parks and Recreation Department, and the Central Library are 27 centrally located facilities servicing all residents of the City with various City functions, and retail, 28 business and commercial functions, which includes servicing the residents, workers and business 1) P FDA BW get Atl option FY 08-09 R.C(COnY)dm 1 owners within the State College, the Northwest, the Tri City, and the Southeast Industrial Park 2 Redevelopment Project Areas (collectively, referred to herein as the "Benefited Project Areas"); and 3 WHEREAS, each of the aforementioned Benefited Project Areas are generally contiguous or 4 in proximity to the Central City Merged Redevelopment Project Area and the Central City North 5 Redevelopment Project Area, and the Central City Merged Redevelopment Project Area and the 6 Central City North Redevelopment Project Area serve the commercial, retail, City services and 7 other community needs of each of the Benefited Project Areas as to those functions that cannot be 8 provided separately within each of the Benefited Project Areas; and 9 WHEREAS, the Project Areas are suffering from stagnant property values and impaired 10 investments, and in order to promote the City's health, safety and welfare, it is important that the 11 Agency fund the costs of the aforementioned City Funded Improvements; and 12 WHEREAS, in connection with the funding of the City Funded Improvements, it is proposed 13 that the Agency shall utilize revenues attributable to the Benefited Project Areas as follows: (1) 14 State College Redevelopment Project Area ($714,000); (2) Southeast Industrial Park 15 Redevelopment Project Area ($1,174,000); (3) Tri City Redevelopment Project Area ($184,000); 16 and, (4)Northwest Redevelopment Project Area($230,500); and 17 WHEREAS, it is appropriate at this time for the Commission to make certain findings and 18 determinations and take certain actions with respect to the Agency's funding of the City Funded 19 Improvements. 20 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 21 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 22 FOLLOWS: 23 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 24 this reference. 25 Section 2. The Commission hereby approves the payment by the Agency of the City 26 Funded Improvements in order to ensure the economic enhancements and stability of the Benefited 27 Project Areas and other neighborhoods with the City for the reasons set forth in the Recitals 28 hereinabove. The Commission also finds and determines that no other reasonable means of P:WWn&sU cwlutiO"Saesolutions�WgW7-07-08 EDA Bodge Adoption FY 08-09 Raw C(Coot)doe 1 financing the City Funded Improvements is presently available to the Agency and the City, and the 2 Agency requires the use of revenues generated from the Benefited Project Areas, and the 3 Commission further finds that the funding of the City Funded Improvements will enhance the 4 viability in the Benefited Project Areas thereby eliminating existing blighted conditions in the 5 Benefited Project Areas, provide the residents, workers and businesses with City services, and retail, 6 business, commercial and other community services from within the Central City Merged 7 Redevelopment Project Area and the Central City North Redevelopment Project Area to the 8 Benefited Project Areas and the residents and businesses located therein and is consistent with the 9 Implementation Plan adopted pursuant to Section 33490 of the Act. 10 Section 3. The Agency Secretary is hereby authorized and directed to cause this 11 Resolution to be transmitted to the City for consideration in connection with appropriate action by 12 that body. 13 Section 4. The findings and determinations herein shall be final and conclusive. This 14 Resolution shall become effective immediately upon its adoption. 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 28 P\Agendes\Resolutions\Resolutions @008\07-07-08 EDA Budge Adoption FY 08-09 Reno C(C Wt)doc 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE 2 FUNDING OF VARIOUS CITY OF SAN BERNARDINO FISCAL YEAR 2008- 3 2009 PUBLIC IMPROVEMENT EXPENDITURES AND MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT TO THE VARIOUS 4 REDEVELOPMENT PROJECT AREAS FOR UNDERTAKING PUBLIC IMPROVEMENTS IN CONNECTION WITH THESE VARIOUS CITY 5 EXPENDITURES 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof,held on the day of , 2008, by the following vote to wit: Commission Members: Ayes Nays Abstain Absent 10 ESTRADA — 11 BAXTER _ 12 BRINKER — 13 DERRY — 14 KELLEY — 15 JOHNSON 16 MC CAMMACK 17 18 19 Secretary 20 The foregoing Resolution is hereby approved this day of 2008. 21 22 Patrick J. Morris, Chairperson Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 25 26 By: 27 Agency Couns 1 28 P:VAgendasU wlm V ions esolutions@008W7-07-08 EDA Budget Adoption FY 08-09 Res.C(Co t)d. 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE FUNDING OF VARIOUS CITY OF SAN BERNARDINO FISCAL YEAR 2008-2009 PUBLIC 4 IMPROVEMENT EXPENDITURES AND MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT TO THE VARIOUS 5 REDEVELOPMENT PROJECT AREAS FOR UNDERTAKING PUBLIC 6 IMPROVEMENTS IN CONNECTION WITH THESE VARIOUS CITY EXPENDITURES 7 8 WHEREAS, the City of San Bernardino, California (the "City"), is a municipal corporation 9 and a charter city duly created and existing pursuant to the Constitution and the laws of the State of 10 California; and 11 WHEREAS, the Community Development Commission of the City of San Bernardino (the 12 "Commission") on behalf of the Redevelopment Agency of the City of San Bernardino (the 13 Agency"), is a redevelopment agency, a public body, corporate and politic of the State of 14 California, organized and existing pursuant to the Community Redevelopment Law (Part 1 of 15 Division 24 commencing with Section 33000) of the Health and Safety Code of the State of 16 California(the"Act'); and 17 WHEREAS, pursuant to Section 33445 of the Act, the Agency may, with the consent of the 18 Mayor and Common Council of the City (the "Council"), pay all or a part of the cost of installation 19 and construction of any building, facility, structure or other improvement which is publicly owned 20 either within or without the boundaries of a redevelopment project area if the Council determines: 21 (1) that such buildings, facilities, structures or other improvements are of benefit to the 22 redevelopment project area or the immediate neighborhood in which the project is located, 23 regardless of whether such improvement is within another project area, or in the case of the project 24 area in which substantially all the land is publicly owned, that the improvement is of benefit to an 25 adjacent project area of the Agency; (2) that no other reasonable means of financing such buildings, 26 facilities, structures or other improvements is available to the community, and such determination 27 by the Commission and the Council shall be final and conclusive; and, (3) that the payment of funds 28 for the cost of the facilities, structures or other improvements will assist in the elimination of one P:Vsm"sULmiusion ssBmkMionss1008s01A7-08 E A Budges Adopion FY 0"Belo D(C.d).do 1 (1) or more blighted conditions inside the project area; and 2 WHEREAS, the Council and the Commission have previously approved and adopted 3 Redevelopment Plans (collectively, hereinafter referred to as the "Redevelopment Plans") for 4 various redevelopment project areas within the City, which project areas include: State College, 5 Central City North, Southeast Industrial Park, Northwest, Tri City, and Central City Merged 6 Redevelopment Project Areas; and 7 WHEREAS, it is in the interest of the present landowners within the various project areas 8 subject to the Redevelopment Plans (the "Project Areas") and the residents, both within the Project 9 Areas and within the City generally, that the Agency cause the funding of certain improvements 10 consisting of: (1) the Agency payment of the COP debt service payment for the Central Police 11 Department building ($493,700) within the Central City North Redevelopment Project Area; (2) 12 payment of certain security costs in the form of contractual committed police officers related to the 13 Carousel Mall ($267,100) within the Central City Merged Redevelopment Project Area; (3) 14 elimination of all rent payments to the Agency otherwise due and payable from the City for those 15 City Departments that are tenants in the Agency owned building located at 201 North "E" Street 16 ($197,200) within the Central City Merged Redevelopment Project Area; (4) the Agency payment 17 of the Central Library Lease Revenue debt service payment ($657,000) for the Central Library 18 located within the Central City North Redevelopment Project Area; (5) the Agency payment of the 19 Carousel Mall janitorial ($350,000) within the Central City Merged Redevelopment Project Area; 20 and, (6) the Agency payment of the Carousel Mall security ($337,500) within the Central City 21 Merged Redevelopment Project Area (collectively, referred to herein as the "City Funded 22 Improvements"); and 23 WHEREAS, the Central Police Department building, the Carousel Mall, the Agency owned 24 201 North `B" Street building, wherein certain City Departments are tenants including the Code 25 Enforcement Department and the Parks and Recreation Department, and the Central Library are 26 centrally located facilities servicing all residents of the City with various City functions, and retail, 27 business and commercial functions, which includes servicing the residents, workers and business 28 owners within the State College, the Northwest, the Tri City, and the Southeast Industrial Park P:Ugrsdu mlusionsUesolusions�2WS8 7-07-08 FDA Budge Adoption FY 09-09 Reno D(C2t)doc I Redevelopment Project Areas (collectively, referred to herein as the `Benefited Project Areas"); and 2 WHEREAS, each of the aforementioned Benefited Project Areas are generally contiguous or 3 in proximity to the Central City Merged Redevelopment Project Area and the Central City North 4 Redevelopment Project Area, and the Central City Merged Redevelopment Project Area and the 5 Central City North Redevelopment Project Area serve the commercial, retail, City services and 6 other community needs of each of the Benefited Project Areas as to those functions that cannot be 7 provided separately within each of the Benefited Project Areas; and 8 WHEREAS, the Project Areas are suffering from stagnant property values and impaired 9 investments, and in order to promote the City's health, safety and welfare, it is important that the 10 Agency fund the costs of the aforementioned City Funded Improvements; and 11 WHEREAS, in connection with the funding of the City Funded Improvements, it is proposed 12 that the Agency shall utilize revenues attributable to the Benefited Project Areas as follows: (1) 13 State College Redevelopment Project Area ($714,000); (2) Southeast Industrial Park 14 Redevelopment Project Area ($1,174,000); (3) Tri City Redevelopment Project Area ($184,000); 15 and, (4)Northwest Redevelopment Project Area($230,500); and 16 WHEREAS, it is appropriate at this time for the Council to make certain findings and 17 determinations and take certain actions and grant a certain consent with respect to the Agency's 18 funding of the City Funded Improvements. 19 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 20 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 21 FOLLOWS: 22 Section 1. The Recitals hereinabove are true and correct and are incorporated herein by 23 this reference. 24 Section 2. The Council hereby consents to the payment by the Agency of the City 25 Funded Improvements in order to ensure the economic enhancements and stability of the Benefited 26 Project Areas and other neighborhoods with the City for the reasons set forth in the Recitals 27 hereinabove. The Council also finds and determines that no other reasonable means of financing the 28 City Funded Improvements is presently available to the Agency and the City, and the Agency P:tABeodss\RmWtiwu wWtionsV BW7A7-8 EDA Budget Adoption FY 011 0 Beso D(Co Y)dm I requires the use of revenues generated from the Benefited Project Areas, and the Council further 2 finds that the funding of the City Funded Improvements will enhance viability in the Benefited 3 Project Areas thereby eliminating existing blighted conditions in the Benefited Project Areas, 4 provide the residents, workers and businesses with City services, and retail, business, commercial 5 and other community services from within the Central City Merged Redevelopment Project Area 6 and the Central City North Redevelopment Project Area to the Benefited Project Areas and the 7 residents and businesses located therein and is consistent with the Implementation Plan adopted 8 pursuant to Section 33490 of the Act. 9 Section 3. The City Clerk is hereby authorized and directed to cause this Resolution to 10 be transmitted to the Agency for consideration in connection with appropriate action by that body. 11 Section 4. The findings and determinations herein shall be final and conclusive. This 12 Resolution shall become effective immediately upon its adoption. 13 // 14 //, 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 26 27 28 // A P:V.gondaslRmiutions\RmlulionsUMW7b 07-08 FDA Bu4a Adoption FY 08-M R.D(t).doc I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE FUNDING OF 2 VARIOUS CITY OF SAN BERNARDINO FISCAL YEAR 2008-2009 PUBLIC 3 IMPROVEMENT EXPENDITURES AND MAKING FINDINGS AND DETERMINATIONS AS TO THE BENEFIT TO THE VARIOUS 4 REDEVELOPMENT PROJECT AREAS FOR UNDERTAKING PUBLIC IMPROVEMENTS IN CONNECTION WITH THESE VARIOUS CITY 5 EXPENDITURES 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a meeting thereof, 9 held on the day of 2008,by the following vote to wit: Council Members: Ayes Nays Abstain Absent 10 ESTRADA 11 BAXTER _ 12 BRINKER — 13 DERRY 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 19 Rachel G. Clark, City Clerk 20 The foregoing Resolution is hereby approved this day of 2008. 21 22 Patrick J. Morris, Mayor 23 City of San Bernardino 24 Approved as to Form: 25 By: 26 es F. Penman, City Attorney 27 28 IP:WgeMUVl esolutiovUlewlutions1008W'!-0]-OB EDA Budge[Adoption FY 0"9 R vo D(dt)dm