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HomeMy WebLinkAboutMinutes-02-21-78-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING FEBRUARY 21, 1978 The City Council/Community Development Commission of the City of Downey held an adjourned regular meeting at 7:30 p.m., February 21, 1978, in the Council Chamber of the Downey City Hall, Mayor/Chairman Richard M. Jennings presiding. PRESENT: Council Members/Commissioners: Kenneth J. Miller William L. Greene Mayor Pro Ten/Vice-Chairman Theodore J. Jackman Hazel N. Scotto Richard M. Jennings Mayor/Chairman ALSO PRESENT: Charles W. Thompson, City Manager Ervin Spindel, Director of Community Development Martin F. Wynne, Director of Finance William A. Goggin, City Planner Thomas Tincher, Housing & Human Services Coordinator Robert L. Shand, City Clerk -Treasurer COMMUNITY DEVELOPMENT COMMISSION Mr. Thompson briefly explained the basics of the Redevelopment Program. He said the City's entitlement for next year under the Housing & Community Development Block. Grant will be approximately $927,000, and the conditions of the grant are that each City develop its own program to suit its needs, provided the money is spent in connection with the problems of housing for the low and moderate income and for low and moderate income neighborhoods. The program is aimed at preserving quality of neighborhoods within the communities. The program as approved by the City Council is primarily one of housing assistance, together with capital improvements needed in the neighborhoods. In addition, Mr. Thompson said the Redevelopment Program is aimed at preserving those portions of industrial and commercial areas and focusing atten- tion and help to local developers and business people who would like to redevelop their own property or develop business interests within the community. The program takes into consideration the entire City, including the I-105 Freeway corridor studies and the Firestone corridor study, together with the target areas that have been outlined. Mr. Mike Wagner of Municipal Services, Inc., commented reports have been pre- pared, and he noted the preliminary plan which has been submitted to the City Council has also been submitted to the County and State Board of Equalization. He said the report states the City of Downey and the Community Development Commission is seriously considering development of a Redevelopment Plan. Mr. Thompson noted within 60 days of adoption of a preliminary plan, the Community Development Commission is required by law to prepare a Project Area Committee from the project areas, and he outlined the further steps necessary before the program can be implemented, including hearings with the property owners. A calendar of the Redevelopment Plan will be submitted to the Council. Mr. Manny DeDios of Municipal Services, Inc., explained the requirements under Redevelopment Law. He said it is time to form the sub -area committees. Mr. Tincher stated in addition to the Reinvestment in Downey Committee now being formed, two additional committees should be established --a Redevelopment Project Area Committee and a Financial Assistance Committee. Mr. Wagner cited the proposed dates for completing various phases of the program. Chairman Jennings asked if the proposed General Plan amendment would be to amend the existing zoning as it now shows on the City's General Plan, or if it will show on the revised General Plan. Mr. Wagner replied when the Planning Commission approves the Redevelopment Plan it must also find that the Plan is in conformance to the City's General Plan, and any changes would have to be made prior to submittal to the Commission. It was noted any changes in zoning other than what is already zoned would re- quire a General Plan amendment. Chairman Jennings inquired about commencement of the bonding. Council/Community Dev. Comm. Minutes 2/21/78 (adjourned) -1- Mr. DeDios replied there is a reauirement that for 60 days after adoption.of the Redevelopment Plan, the Plan will be subject to challenge; if it is not challenged, then the Plan becomes valid and legally binding, at which time municipal financing for the project can commence. He said the bonding would be utilized to generate operating capital that may be required, for project costs such as providing for offsite public improvements, assisting participants with their development pro- posals, and relocation of tenants if appropriate. Responding to questions, Mr. DeDios explained the mechanics of the bonding. Discussion followed regarding the committee appointments. Chairman Jennings requested a memo from staff outlining what the committees will consist of. Mr. James S. Santangelo, 8426 Dacosta, of the Downey Chamber of Commerce, raised questions concerning how the money will be obtained for bonding. Mr. DeDios explained how new construction in the project area will generate new revenue, also referred to as Tax Increment revenue. Chairman Jennings pointed out that even after final approval and contracts are signed, it will be two or three years before the tax increment begins to build up to be self-supporting. Mr. Tincher emphasized the Redevelopment Program is being presented for con- sideration based upon the premise that unless adequate reinvestment occurs in all sectors of the community, decline is eminent. He reported on material presented to the Council entitled "Potential Revenue Sources" and "Alternative Funding to Compen- sate for Impact of Jarvis Initiative." It was noted the Civic Center is included only in coordination with the plan of the downtown area. Mr. Tincher pointed out that even if the Jarvis Amendment is approved, a viable redevelopment project could still be carried out. A discussion was held regarding the Jarvis Initiative and Revenue Sharing. It was noted the projected revenues refer only to Areas B, C, and D. Area A is the Gardendale-Paramount area. Mr. Tincher explained that Area A was deleted only from the financial feasi- bility aspect of the program. Mr. Wagner stated that although Area A is suitable for redevelopment because it is a blighted area, but it would consume more money than the Commission could afford under present projections, and all of the projects were not included in that area. He did point out, however, if the Jarvis Initiative is not approved and there are other sources of funding available at the State or local level, then the Gardendale area would be feasible. Mr. DeDios offered further explanation regarding the analysis made by Municipal Services, Inc., concerning the project area and the State law requirements for interest rates on bonds, plus maximum discount. Mr. Thompson said the reason for selecting Area A in the Redevelopment Plan is that it has a tremendous impact on the residential neighborhood bounded by Paramount, Downey, Gardendale, and Imperial. Commissioner Jackman inquired what effect it would have on the plan to drop Area A. Mr. Thompson replied it would be a positive financial impact on the Redevelopment section of the program and a negative impact upon the Neighborhood Assistance Program in the Adoree area. Chairman Jennings asked if excess funds are developed in some of the project areas:, can the Council direct where those excess funds can go for development? Mr. DeDios replied yes, and projects can also be added later to the program. He said the reason Area A was added is that there is evidence of blight. He said many agencies are taking areas with more viable projects so surplus generated from one area can help to defray the deficit in another. Mr. DeDios did recommend that Area A be kept within the Redevelopment Project, but that as the program is implemented, priority areas be designated. Then, he said, if it is determined financing cannot be done, he would recommend dropping the area. Commissioner Jackman inquired if a survey has been made of residents in the project areas regarding their feelings on this matter. Council/Community Dev. Comm. Minutes 2/21/78 (adjourned) -2- Mr. DeDios replied this will be done as the Redevelopment Program progresses into the citizen participation aspect of the plan. Mr. DeDios said there will need to be a report prepared by staff and the consultant, wherein the financial feasi- bility of the entire project is evaluated, and the evaluation will take place simultaneously with preparation of a Redevelopment Plan. Further discussion ensued. Mr. Tincher explained a list has been made of the property owners in each target area, and immediately upon adoption of the Preliminary Plan, staff intends to notify the property owners that a project area has been established and meet with as many interested property owners as possible to ascertain their thoughts and thinking about, the future of their property. He pointed out current plans are under way in the downtown area and Paramount-Gardendale area. Mr. Tincher stated the Jarvis Initiative would cut the City°s ability to generate resources for redevelopment from $4 million to $1,300,000, and the City would then have to consider alternative funds. Mr. James Santangelo, 8426 Dacosta, addressed the Commission on behalf of the Downey Chamber of Commerce and submitted a prepared statement of the Chamber con- taining reasons it feels the Commission would be premature in taking action on the Reinvestment in Downey Program. He said as proposed, it is his opinion the Rehabilitation and Redevelopment Plan is not sufficient in the primary problem area of the community, which is decay of the residential areas. The Chamber also feels the possibility of the Redevelopment Plan affecting commercial areas is only there to add tax increment money to the Redevelopment Agency. Speaking to the Pangborn area, Mr. Santangelo indicated that in his opinion he does not feel the frontage proposed for commercial is in keeping with property development. He requested further information and specifics concerning the status of property owners who do not wish to become part of the plan. Discussion followed. Mr. DeDios pointed out the last date on which the Council can adopt the Plan and still use the 1977-78 base tax roll is an effective date prior to August 20th. Commissioner Miller inquired about the proper financing method. Mr. DeDios responded that by the time the Council has to be prepared as a composite part of the Redevelopment Plan, staff will have more definite information as to the impact of Jarvis. He pointed out the general Redevelopment Plan will con- tinue to speak to use of tax increment financing regardless of whether or not the City will be able to take full advantage of available funds, or in the event of Jarvis, utilize other sources of funding. He concurred that residential areas can have a critical impact on a community, and two neighborhoods were selected in which staff felt would qualify under the Health & Safety Code. He said a strip commercial area is not contemplated in the Pangborn. area. He also stated for the record that he agreed strict commercial uses in general today do not make sense. RESOLUTION NO. 3 A RESOLUTION OF THE DOWNEY COMMUNITY DEVELOPMENT COMMISSION RECEIVING THE PRELIMINARY PLAN FOR THE DOWNEY REDEVELOPMENT PROJECT AREA The Resolution was read by title only. It was moved by Commissioner Greene, seconded by Commissioner Scotto, and so ordered to waive further reading. It was moved by Commissioner Greene, seconded by Commissioner Scotto, and passed by the following vote to adopt Resolution No. 3. Commissioner Miller stated for the record he feels the Redevelopment and Rehabilitation Assistance Programs are very important, but if in the event of Jarvis it meant reducing the Rehabilitation Program by 47.4 percent and the Redevelopment Program by 8 percent, he would not be in favor of that. Commissioner Greene indicated he feels the residential areas are as important as industrial, and he suggested that starting in the industrial area might pull more residential areas into the program. AYES: 5 Commissioners: Miller, Greene, Jackman, Scotto, Jennings It was moved by Commissioner Jackman, seconded by Commissioner Scotto, and passed by the following vote to approve the Agreement for Phase II Redevelopment Consulting Services with Municipal Services, Inc., in the amount of $15,000. It was noted the changes as recommended by the City Attorney have been incorpo- rated into the Agreement. Council/Community Dev. Comm. Minutes 2/21/78 (adjourned) -3- AYES: 5 Commissioners: Miller, Greene, Jackman, Scotto, Jennings Mr. Tincher reported the City is in the process of hiring a Rehabilitation Specilist to begin implementation of the Rehabilitation Financial Assistance Pro- gram„ and said it is anticipated the program will be implemented the first of the month. A brochure is being printed which will be mailed to property owners and residents in the project areas. Referring to the 312 Loan Program, Mr. Tincher said the regional office of HUD has requested the local agencies to delay forwarding any applications because they have a three month backlog. It was moved by Commissioner Greene and seconded by Commissioner Jackman to adjourn the Community Development Commission meeting. CITY COUNCIL The City Council then convened to consider its portion of the Agenda. All Council Members were present. ORDINANCE NO. 541 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY PROHIBITING THE ISSUANCE OF BUILDING PERMITS ON THE RE- DEVELOPMENT PROJECT AREA AND DOWNTOWN REINVESTMENT PLAN- NING AREA EXCEPT UPON AUTHORIZATION OF THE CITY COUNCIL During discussion, Mayor Jennings questioned the need to adopt the Ordinance as an emergency. Mr. Thompson explained the issuing of permits without Council approval would be prohibited immediately rather than having to wait for 30 days. Councilman Miller said he did not understand until now that the Ordinance oer- tains to the entire Redevelopment Area. It was noted the Downtown Reinvestment Planning Area boundaries are Fifth Street on the north, Brookshire Avenue on the east, Paramount Boulevard on the west, and Cleta Street on the south. The Ordinance was read in its entirety. It was moved by Councilwoman Scotto, seconded by Councilman Greene, and passed by the following vote to adopt Ordinance No. 541. AYES: 4 Council Members: Greene, Jackman, Scotto, Jennings NOES: 1 Council Member: Miller Councilman Miller stated for the record that he supports the intent of the Ordinance. Speaking to the City Selection Committee of the Southern California Rapid Transit District, Councilman Miller mentioned the Executive Committee has endorsed Mr. Donald F. Yokaitis for member of the Boundary Formation Commission. It was moved by Councilman Miller, seconded by Councilman Greene, and so ordered that the City°s representative to the City Selection Committee vote for Mr. Donald F. Yokaitis as member of the Boundary Formation Commission. It was moved by Councilman Miller, seconded by Councilman Greene, and so ordered that the City's representative to the City Selection Committee vote for Christine E. Reed as the alternate member of the Boundary Formation Commission. Mayor Jennings informed the Council that today, the Animal Control received a credit statement of $300,000 from the Department of Public Works. Mr. Thompson explained an analysis is being made of the State Unemployment Insurance Program, and once completed, the Council must make decision as to which funding method it would prefer. He said the deadline on this is February 27th, and he offered the following methods for Council consideration: A general fund; a municipal trust fund or municipal general fund; or, a reimbursement method. Councilman Greene requested staff prepare the 105 Freeway Resolution deleting the portion involving construction of a fixed rail and rapid transitway and bring the Resolution back for action by the City Council. The Resolution is to be consistent with former action of the City Council. There being no further business to come before the City Council, the meeting was adjourned at 10:51 p.m. Robert L. Shand, City Clerk -Treasurer William L. Greene, Mayor Pro Tem Council/Community Dev. Comm. Minutes 2/21/78 (adjourned) -4-