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R-4 Staff Report - Central Los Gatos Redevelopment ProjectMEETING DATE: 3/3/97 ITEM NO. AGENCY AGENDA REPORT DATE: February 28, 1997 TO: CHAIR AND MEMBERS OF THE DEVELOPMENT AGENCY FROM: EXECUTIVE DIRECTOR SUBJECT: ADOPT RESOLUTION AMENDING THE FIVE YEAR IMPLEMENTATION PLAN FOR THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT TO INCLUDE PUBLIC PARKING RECOMMENDATION: Adopt resolution amending the Five Year Implementation Plan for the Central Los Gatos Redevelopment Project to include public parking. DISCUSSION: Section 33490 of the California Redevelopment Law requires every redevelopment agency to adopt an implementation plan. The plan must: a. Identify specific goals and objectives for the project area; b. Identify specific, proposed projects and expenditures; c. Explain how the goals and objectives as well as the proposed project expenditures will eliminate blight. The Agency adopted the Five Year Implementation Plan for the Central Los Gatos Redevelopment Project (Implementation Plan) on December 5, 1994. The proposed projects and expenditures are shown in the table below. Program Expenditures 1994-95 1995-1996 1996-97 1997-98 1998-99 Benches & Receptacles $8,000 $17,000 Landscape Planters $10,000 $20,000 $15,000 Sidewalk Cleaner $10,000 Safety Grates $10,000 Beautification $7,500 Televise Storm Drains S 10,000 Reconstruct Massol Storm Drain $300,000 PREPARED BY: LEE E. BOWMAN F/- Deputy Executive Director Reviewed by: General Counsel ance Director Revised: 2/28/97 8:55 am Reformatted: 10/23/95 PAGE 2 CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY SUBJECT: RESOLUTION AMENDING THE FIVE YEAR IMPLEMENTATION PLAN February 28, 1997 In order for the Agency to participate in the construction of additional public parking the Agency must adopt the resolution (Attachment 1) amending the Implementation Plan. A redlined copy of the Implementation Plan showing the specific changes is included as Attachment 2. The revised table of program expenditures is provided below. Program Expenditures 1994-95 1995-1996 1996-97 1997-98 1998-99 Benches & Receptacles $8,000 $17,000 Landscape Planters $10,000 $20,000 `D 15,000 Sidewalk Cleaner $10,000 Safety Grates $10,000 Beautification $7,500 Televise Storm Drains $10,000 Public Parking $1,000,000 Reconsruct Massol Storm Drain $300,000 The Agency should carefully consider whether additional funds should be directed toward parking rather than other projects identified in the Implementation Plan and Redevelopment Plan such as repairs/improvements to the Massol Storm Drain, Downtown Planters, and street repairs. The Implementation Plan indicates that $300,000 will be expended in 1998-99 to reconstruct the Massol Storm Drain. Attachment 3 is a list of the proposed public improvements included in the Redevelopment Plan. The Agency is currently responsible for paying off the Certificates of Participation (COPs) for Parking Lot 4. The balance due on the COP's is $2,567,510 and about 58% ($269,840) of the Agency's 1996/97 revenue will go toward principal and interest payments. However, it may be possible to finance construction of the Massol Storm Drain and public parking by securing a loan from the Town or bonding. The issue of financing public parking is discussed in more detail in the Council/Agency Report for Agenda Item R-5. FISCAL IMPACT: There is no fiscal impact caused by amending the Implementation Plan. The fiscal impact of constructing public parking will be addressed when a specific project is identified. ENVIRONMENTAL IMPACT: Amendment of the Implementation Plan is not a project as defined under CEQA, and no action is required. ATTACHMENTS: 1. Resolution Approving Amended Five Year Implementation Plan. 2. Redlined copy of the Five Year Implementation Plan showing proposed changes. 3. List of Proposed Public Improvements from the Redevelopment Plan for the Central Los Gatos Redevelopment Project LEB:BL N:1DEV 1RDA\AM ENDPLN.RPT RESOLUTION 1997- RD RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS AMENDING THE FIVE YEAR IMPLEMENTATION PLAN FOR THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT AREA TO INCLUDE PUBLIC PARKING WHEREAS: 1. The Redevelopment Agency of the Town of Los Gatos has approved and adopted a Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (the "Project Area"); and 2. Pursuant to Health and Safety Code Section 33490, the redevelopment Agency of the Town of Los Gatos (the "Agency") is required to conduct a duly noticed public hearing to consider the Amended Implementation Plan for the Project Area (the "Implementation Plan"); and 3. The provision of expanded and improved public parking in support of downtown businesses is identified in the Redevelopment Plan as an essential component of the redevelopment program; and 4. The Agency has determined that additional public parking is needed to alleviate parking congestion within the Project Area; and 5. Agency staff has prepared and presented to the Agency an Implementation Plan that includes public parking as a proposed program, a copy of which is on file with Agency Secretary; and 6. On the date of this resolution, the Agency conducted and concluded a duly noticed public hearing on the Implementation Plan in accordance with Health and Safety Code Section 33490; and 7. The Implementation Plan, with any modifications as considered and approved in connection with the public hearing, constitutes a statement of the Agency's goals and objectives for the Project Area, a summary of the specific programs and proposed expenditures proposed to be made by the Agency during the 1995-1999 five year period, an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area as required by the Community Redevelopment Law; and ATMCH ENT 1 S. The Implementation Plan is consistent with the Redevelopment Plan; and 9. Pursuant to Health and Safety Code Section 33490, approval of the Implementation Plan does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"), and therefore no environmental documentation is required pursuant to CEQA. RESOLVED, that the Agency hereby approves and adopts the Amended Implementation Plan for the Central Los Gatos Redevelopment Project. FURTHER RESOLVED, the Agency hereby authorizes the Agency Executive Director to take such other actions as are appropriate to effectuate the intent of the Amended Implementation Plan. FURTHER RESOLVED, that this Resolution and the Amended Implementation Plan shall take immediate effect upon adoption. PASSED AND ADOPTED at a regular meeting of the Redevelopment of the Town of Los Gatos, California, held on the day of March, 1997 by the following vote. REDEVELOPMENT AGENCY MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: ATTEST: CHAIR OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS, CALIFORNIA SECRETARY OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS, CALIFORNIA N:\DEV\RDA\IMPLMENT.RES Los Gatos Redevelopment Agency Central Los Gatos Redevelopment Project Five -Year Implementation Plan 1995-1999 REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS 100 East Main Street Los Gatos, CA 95032 ADOPTED: December 5, 1994 AMENDED: March 3, 1997 ATTACHMENT 2 TABLE OF CONTENTS INTRODUCTION 1 - 3 Map of Project Area 4 HISTORY OF THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT 5 Goals and Objectives of Project Plan Area 5 - 6 Agency Activities and Accomplishments Since Plan Adoption 6 - 7 IDENTIFICATION OF KEY BLIGHTING CONDITIONS 7 Physical Conditions of Blight Existing in Project Area 7 - 8 Economic Conditions of Blight Existing in Project Area 8 - 9 PROPOSED AGENCY FIVE YEAR GOALS AND OBJECTIVES 9 - 10 Goals, Objectives and Specific Projects/Programs 10 - 12 PROJECT FINANCING 12 - 13 ATTACHMENT 1 14 ATTACHMENT 2 15 ATTACHMENT 3 16 APPENDIX A 17 APPENDIX B 18 LOS GATOS REDEVELOPMENT AGENCY CENTRAL LOS GATOS REDEVELOPMENT PROJECT FIVE-YEAR IMPLEMENTATION PLAN 1995-1999 INTRODUCTION In the early 1950's the voters of California adopted a voter approved initiative to assist communities that were struggling to stem and reverse the decline of certain areas. This Law was entitled "The Community Redevelopment Law" and was codified in the California Health and Safety Code ("the Law"). The Law set forth the authority and various requirements for a city or county to adopt a redevelopment project. The Code has been altered and updated many times since its initial adoption in 1952. Use Footnotes to reference new law Assembly Bill 1290. A major change in ("the Law") occurred on October 6, 1993, when Assembly Bill 1290' was approved by the Legislature and became law. Entitled The Community Redevelopment Law Reform Act of 1993, the bill includes sweeping changes in the Community Redevelopment Law. SB 732'signed by Governor Wilson on September 27, 1994 provided technical clean-ups to certain provisions of AB 1290. The provisions of AB 1290 and SB 732 were developed by the California Redevelopment Association (CRA) and legislative representatives to correct perceived abuses and insure that the redevelopment process remained focused on the alleviation of blight through public improvements and economic development and the provision of affordable housing. The changes in the Law affect both existing project areas as well as new plan adoptions. Revisions to the definition of blight, the end of fiscal review committees, time limits on all project areas, the repeal of authority to receive sales tax revenues and a strong penalty provision for agencies which do not spend their housing funds are hallmarks of the new law. The bill also includes specific authority for commercial rehabilitation loans, assistance to manufacturing facilities and options in meeting inclusionary housing requirement. The Law now requires each agency to adopt a five-year Implementation Plan which provides documentation for the link between the elimination of blight and the proposed goals, objectives and actions of redevelopment agencies. For project areas adopted on or after January 1, 1994, agencies must include an Implementation Plan in the report submitted by the agency to the legislative body prior to adoption of the redevelopment plan (§ 333523). Each agency which adopted a lEnacted as 1993 Statues, Chapter 942 2Enacted as 1994 Statues, Chapter 936 1 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 Redevelopment Plan prior to December 31, 1993, must prepare and adopt, following public hearing, an Implementation Plan on or before December 31, 1994, and every five years thereafter (§ 33490[a]). In addition, at least once in the third year of each five-year period, the agency must conduct a public hearing and hear testimony of interested persons to review the effectiveness of the Implementation Plan. The purpose of the Implementation Plan is to provide a five year planning period for agency activities. In the past, many agencies used an annual planning period through the agency budget process. The Law also required a biannual hearing on the Redevelopment Plan. This hearing provided an additional opportunity for an agency and community to evaluate existing programs and plan for new programs. The disadvantage of the biannual hearing was that it focused on the Redevelopment Plan, a policy document, rather than programs. AB 1290 replaced the biannual hearing with the five year Implementation Plan, focusing on agency programs. The Implementation Plan describes specific programs including potential projects and estimated expenditures of the Agency for the project area for the next five years and an explanation how the programs will eliminate blight and implement low and moderate income housing goals. The Implementation Plan will describe how the agency will implement both the requirement to increase, improve and preserve low- and moderate -income housing and the inclusionary housing requirement. This section of the Plan will propose an annual housing program and specific plans for the expenditures of monies from the Low and Moderate Income Housing Fund. The Implementation Plan does not include any projects that will result in the destruction of low or moderate income housing, therefore, the Plan does not identify proposed locations suitable for the replacement housing. The goals and objectives of the Implementation Plan also affect the disposition of Agency property and Agency funding of public improvements. If property acquired in whole or in part with tax increment funding is to be conveyed, the Agency must prepare a report with an explanation of why the sale or lease of the property will assist in the alleviation of blighting conditions, together with supporting evidence (§33433). Prior to authorizing payment for any public improvement or facility, the Agency must find the improvement or facility will assist in the alleviation of blighting conditions. The Redevelopment Agency of the Town of Los Gatos has prepared the following five-year Implementation Plan. As allowed by section 33490(c), This Implementation Plan addresses the project area established by the Redevelopment Agency on November 25, 1991. The five-year planning period covered by this Plan extends from July 1, 1994, though June 30, 1999, 3All references are to the California Health and Safety Code unless otherwise specifically noted. 2 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 encompassing fiscal years 1994-95 through 1998-99. As required by Law, the Implementation Plan was adopted by the Agency after a public hearing on December 5, 1994. The community was notified of the hearing pursuant to the provision of Government Code Section 6063. This Implementation Plan was accomplished with input from a broad cross-section of persons and organizations, including representatives from the business community, the Los Gatos Chamber of Commerce, Redevelopment Advisory Committee, and all Town departments. Further input into the plan has solicited from the public through the public hearing process. This Implementation Plan is intended to provide guidance for the Agency in accomplishing the goals established in the Redevelopment Plan. It is recognized that constraints and opportunities may occur over the next five years while undertaking the programs and activities described in this Plan. Therefore, the Agency intends to use and interpret this Plan as a flexible guide and that specific programs and activities, as actually implemented over the next five years, may vary in their precise timing, location, cost, expenditure, scope and content from that set forth in this document without requiring an amendment to this Plan; the underlying propose and effect of the programs and activities, as actually implemented, are to be consistent with the purposes and effects articulated in this Plan and the Redevelopment Plan. The five-year planning period covered by this Plan extends from July 1, 1994 through June 30, 1999, encompassing fiscal years 1994-95 through 1998-99. 3 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 HISTORY OF THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT The Central Los Gatos Redevelopment Project Area was adopted on November 25, 1991. The project area consists of 441 acres including the Central Business District, the Civic Center and the Historic Downtown residential neighborhoods. A map of the Project Area is included on page 4. The purpose of the Plan was to provide a financing tool to assist the Town and its residents repair damage from the Loma Prieta earthquake and complete seismic strengthening and safety programs to insure the public safety and welfare. The Redevelopment Project was also intended to be a financing mechanism to assist in the revitalization of the downtown commercial area and to reconstruct deteriorated infrastructure. All rehabilitation and development activities outlined in the Plan must conform to the Town's existing and future planning programs including the General Plan and Downtown Specific Plan. Goals and Objectives of Project Plan Area The Redevelopment Plan for the Central Los Gatos Redevelopment Project sets forth the Agency's goals, the methods of financing redevelopment activities and the time limits of the program. The Redevelopment Plan will remain in effect until 2031, forty years from the adoption date. The amount of tax increment revenue that the Agency can collect over that time period is $ 250 Million. Pursuant to the recent changes to the Redevelopment Law, enacted as AB 1290 and SB 732, the Redevelopment Plan was amended to allow the Agency to establish or incur loans, advances or indebtedness to finance redevelopment activities until 2011. The Redevelopment Plan identified ten categories of public infrastructure, commercial rehabilitation and housing improvement projects to be funded by the Los Gatos Redevelopment Agency. The draft Redevelopment Plan included a list of projects that was estimated to cost in excess of $30 million. However, the revenue sharing agreements with the various school districts, the County and the Mid - Peninsula Open Space District required the list to be scaled back significantly since the Agency's estimated revenues were reduced to $15 million. The project list included in the Redevelopment Plan and is summarized below: • Street Reconstruction Alley Improvements Improvements to the Downtown Streetscape improvements Loans for seismic strengthening Loans/Assistance for geologic investigations and structural analysis 5 Los Gatos Redevelopment Agency Final Five Year implementation Plan 1995 - 1999 Facade improvements Parking facilities Hazardous waste removal Improvements to Community Facilities Structural Analysis Seismic strengthening and repair • Public Transit Facilities • Assistance to increase and improve the supply of low and moderate income housing Agency Activities and Accomplishments Since Plan Adoption The Redevelopment Agency received its first tax Increment revenues in Fiscal Year 1992-93. The small amount of revenue received over the initial 2-1/2 years has precluded the Agency from formally initiating any large scale redevelopment projects. The revenues received to date have predominately been utilized to fund required administrative activities and interest payments on the start up loan from the Town. The Agency and Planning approves Certificates of Participation to reimburse the Town for the construction of Parking Lot #4. In addition, the Agency funded the Downtown Streetscape Plan. The Agency will proceed with the modest programs identified in this Implementation Plan over the next five years. As revenues gradually increase over time; the Agency will begin to implement the goals of the more cost -intensive programs identified in the Redevelopment Plan. The Agency will evaluate the feasibility of using financing vehicles as a method of financing these programs. As set forth in the Redevelopment Plan, the goals of the Project are to eliminate the blighting influences in the Project Area through programs to rehabilitate, revitalize and protect the Project Area. These goals will be accomplished by programs to strengthen the economic base of the community, provide rehabilitated and improved infrastructure, seismic strengthening, and upgrading the commercial and residential areas. The Agency recognizes that an excellent public education system enhances the economic strength of a community. Agency actions will provide the Los Gatos Elementary School District, Los Gatos - Saratoga High School District, West Valley College District and the County Office of Education with substantial revenues for capital improvements to serve the residents of the Project Area. The Agency also recognizes that open space must be preserved to maintain the quality of life for residents of the Project Area. Therefore, the Agency will provide financial assistance to the Mid- 6 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 Peninsula Open Space District to acquire property to expand the northern area of the El Sereno Open Space Preserve, the St. Joseph's Hill Open Space Preserve and the Kennedy/Limekiln and Northern Cathedral Oaks Areas of the Sierra Azul Open Space Preserve. The Agency will evaluate the feasibility of issuing bonds as a method of financing these programs. IDENTIFICATION OF KEY BLIGHTING CONDITIONS In order to adopt a redevelopment project under the Law, there is a requirement that the area contain certain blighting characteristics which have caused a reduction of the best and proper use of property in the area to such an extent that it creates a serious physical, social or economic burden on the community that cannot be rectified or reversed by the private sector acting alone. Prior to 1994, the Law set forth several characteristics which would indicate that an area was appropriate for the use of redevelopment. These characteristics were divided into physical and socioeconomic factors. Appendix A includes a list of the factors that constitute blight. One or more of these factors had to be in existence at the time the Central Los Gatos Redevelopment Project was adopted. While one does not normally consider a community like Los Gatos to have these factors, the age of the infrastructure and buildings and low economic returns on commercial properties created a situation that met and continues to meet the definitions set forth in the Law. This was proven in the aftermath of the earthquake, when many of the older residential and commercial buildings were severely damaged. A similar unsafe situation could occur in Downtown due to deteriorated storm drains which could cause flooding and structural failures. The adoption of AB 1290 changed definitions of blight which can be considered in establishing project areas adopted on or after January 1, 1994. The definitions in the new Law are included in the Post AB 1290 Appendix B. The Central Los Gatos Redevelopment Project was adopted prior to 1994 and therefore the previous definitions in the Law were used to determine the existence of blighting conditions. However, both the new definitions in AB 1290 and the definitions applicable at time of adoption of the Plan were used to determine the continued existence of these conditions for the purposes of this Plan. The following blighting conditions have been identified in the Project Area. Physical Conditions of Blight Existing in Project Area Unsafe Buildings - Age, obsolescence, deterioration, faulty interior arrangement and exterior spacing The Project Area contains numerous buildings, both commercial and residential, which do not meet current public safety codes due to lack of seismic reinforcement and age. A survey conducted in 1991 showed that 30% of the 1,200 Buildings in the Project Area had significant deficiencies, a minimum of 280 homes in the Project Area were constructed prior to 1900. In addition, areas exist 7 1 n Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 within the Project Area which have poorly maintained buildings, both commercial and residential, which prevent use of certain buildings and necessitate significant code enforcement oversight. Physically Obsolete Buildings/Lots - Lack of Parking The Central Business District, which forms the core of the Project Area, and is primarily characterized by small lots under separate ownership. These small lots are of inadequate size to meet current retail standards. Further, the majority of businesses located in this area do not have adequate on -site parking. To alleviate the parking congestion in the Downtown, the Town formed a parking assessment districts and issued bonds to construct parking lots. The Town has also been instrumental in creating parking facility from lots that were otherwise unusable due to the presence of hazardous wastes on the site. This joint Agency/Town project was undertaken with the understanding that the Agency would fund the debt service on the parking bonds, since the main beneficiaries were the Downtown Commercial property owners. Deteriorated and/or Inadequate Utilities The earthquake caused significant damage to streets, sidewalks, water lines, and storm drains. The heaviest damage in the Town occurred in the Project Area. For example, the Almond Grove neighborhood requires substantial street reconstruction due to age and earthquake damage. The Project Area also contains many alleys which are inadequately paved and require drainage improvements to prevent flooding (Storm Drains: $619,000; Alley Improvements: $1,238,300; Street Reconstruction: $3,038,000). In addition, the Project Area has facilities which do not comply with the Americans with Disabilities Act. This creates unsafe conditions for physically challenged persons. The storm drains in the Project Area also require reconstruction to prevent flooding. In 1991, the estimated cost to repair/reconstruct the most deteriorated and damaged was approximately $5 million. A breakdown of the costs is provided below. Economic Conditions of Blight Existing in Project Area Depreciated or Stagnant Property Values/Economically Obsolete Buildings/Lots The owners of three major commercial properties in the Downtown have been unable to rehabilitate their properties due to stagnating and/or declining value of the property. One of these property owners filed for bankruptcy and the property has been listed for sale by the bank. The majority of the buildings damaged by the earthquake have been repaired and retrofitted and are presently occupied. However, several major commercial buildings are unoccupied or under utilized due to the inability or unwillingness of the owners to finance repairs and facade improvements. 8 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 Inadequate Public Improvements The Project Area contains a significant amount of inadequate infrastructure resulting from deteriorated, insufficient capacity, and earthquake damage. The deficiencies necessitate improvement and reconstruction of streets, sidewalks, storm drains, and water lines. The Project Area also suffers from inadequate community facilities. For example, there is no performing arts center, and the library and Neighborhood Center are too small to meet the needs of area residents. Town Hall also suffered damage during the earthquake and requires some seismic improvements. PROPOSED AGENCY FIVE YEAR GOALS AND OBJECTIVES The Implementation Plan must set forth specific goals and objectives of the Redevelopment Agency for the Project Area. The broader goals and objectives of the Los Gatos Redevelopment Plan (the "Plan") are set out as part of the Plan and include: A. The elimination of blighting influences and the correction of environmental deficiencies in the Project Area, including among others, obsolete and aged building types, substandard alleys and inadequate or deteriorated public improvements, facilities and utilities. B. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. C. The replanning, redesign and development of undeveloped areas which are stagnant or improperly utilized. D. The providing of opportunities for participation by owners and tenants in the revitalization of their properties. E. The strengthening of retail and other commercial functions in the downtown area. F. The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements to stimulate new commercial/light industrial expansion, employment and economic growth. G. The provision of adequate land for parking and open spaces. 9 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 H. The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. I. The expansion and improvement of the community's supply of low- and moderate - income housing. Within the larger context of those goals and objectives, a more specific set of goals and objectives are listed which reflect the methods of implementing portions of the Plan which can be reasonably accomplished within the first five year cycle. There will be a limited amount of programs that can be implemented due to the necessity of gradually building up tax increment revenue. A matrix linking each of these goals to the alleviation of blight is attached (Attachment 1). The implementation discussion is followed by an explanation of how the Agency's proposed projects or programs will eliminate blight. Attachment 2 shows linkages between projects, programs and specific blighting conditions. Attachment 3 outlines the estimated Agency expenditures for proposed Agency programs during the Implementation period.. Goals, Objectives and Specific Projects/Programs 1. Goal: To initiate a Downtown Commercial Revitalization Program Objectives: 1) Develop a Downtown Streetscape Plan 2) Work with the Downtown Association and Chamber of Commerce to repair/replace existing streetscape improvements. 3) Work with the Parking Commission to develop a parking management plan to make better use of existing parking and identifying methods of financing new parking facilities. Specific Projects/Programs: Program: Complete the Downtown Streetscape Plan Expenditure: $2,500 for consultant services Timing: 1994-95 Program: Develop a Parking Management Program Expenditure: None. No consultant services are anticipated at this time. Staff to facilitate without capital cost incurred by the Agency. Timing: 1995-96 10 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 Program: Repair/replace existing streetscape improvements (landscape planters, benches, sidewalk cleaner, etc.) Expenditure: $97,500 Timing: 1994-95, 1995-96 and 1996-97 Explanation regarding elimination of blight: The revitalization program for the Downtown will eliminate blight by building on the existing strengths as a unique, upscale shopping area. The streetscape improvements will make the Downtown more pedestrian friendly, accessible to physically challenged persons, and provide an alternative to the traditional shopping mall experience. As the area attracts more shoppers desiring this type of retail experience, the businesses in the area will become more successful, encouraging investment by new property owners and re -investment by existing property owners. 2. Goal: To expand and improve the community's supply of low- and moderate -income housing . Objectives: 1) Evaluate funding opportunities including combining the Agency's 20% housing set aside revenues with other Town revenues, including Community Development Block Grant (CDBG) funds, to develop low and moderate income housing. 2) Evaluate programs that will satisfy the low/moderate income housing requirement of the redevelopment law. Specific Projects/Programs: Program: Develop financing strategies to facilitate the development of low and moderate income housing. Expenditure: None. Staff to perform with no capital incurred by the Agency. Timing: 1995-96 Program: Develop a plan that identifies the programs that will be used to satisfy the low and moderate income housing requirements. Expenditure: None. Staff to perform with no capital incurred by the Agency. Timing: 1995-96 Explanation regarding elimination of blight: This program will assist in meeting the requirement of the Law that 20% of the Agency's revenues be available to assist in the expansion and preservation low and 11 (Th Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 moderate income housing. This program could assist the Town in achieving the Housing Element goal to provide a diversity of housing for persons of all income levels and meeting the Law's 15% inclusionary housing requirement. This program could also assist in the rehabilitation of residential properties that are impairing the property values of Project Area neighborhoods due to poor maintenance, repair and upkeep. 3. Goal: To repair/reconstruct/construct public parking, the substandard alleys and damaged, inadequate or deteriorated public improvements, facilities and utilities. Objective: 1) Evaluate and establish priorities for reconstructing streets, sidewalks, and storm drains. 2) Evaluate methods to repair/reconstruct Massol/Tait storm drain and develop detailed engineers estimates of costs. 3) Evaluate methods to increase the supply of public parking. Specific Projects/Programs: Program: Video tape the storm drains identified in the Redevelopment Plan to assess the damage and develop repair strategies: Expenditure: $10,000 Timing: 1995-96 Program: Increase the supply of public parking Expenditure: $1,000,000 Timing: 1997-98 Program: Repair/reconstruct the Massol/Tait storm drain Expenditure: $300,000 Timing: 1998-99 Explanation regarding elimination of blight: This program will eliminate the infrastructure deficiencies and increase the supply of public parking that are impairing the full development of the Project Area and createirtg safety hazards for the residents. The storm drainage reconstruction program will insure that the Project Area will not flood. Increasing the supply of public parking and Rrepairing and rehabilitating the streets and alleys in the oldest part of the Town will assist in the development of this area to its full potential and insure that the present parking deficiencies and hazardous situations on the streets, 12 Los Gatos Redevelopment Agency Final Five Year Implementation Plan 1995 - 1999 alleys, and sidewalks will not impair economic investment in the area or the safety of the residents. PROJECT FINANCING The majority of the projects of the Agency will be financed by tax increment revenue. Tax increment is created by the assessed value of all of the properties in the Project Area. When the assessed value of the Project Area increases over the 1991-92 assessed value ("base year value"), the Agency will receive tax increment revenues equal to the amount of taxes attributable to the difference between the current year taxable value in the Project Area and the taxable value in the base year. Tax increment is created as property owners rehabilitate their properties creating a higher assessed value and as properties are sold at values higher than the property was originally assessed at. If the Agency is successful in curbing the influences that have lead to depreciated or stagnant values, the Agency will receive tax increment revenues. However, Agency programs will not cure the problems in the Area immediately. Therefore, Agency tax increment revenue will gradually increase over time. The Agency faces several financial constraints in completing the programs outlined above. These constraints include the present conditions in the Project Area that are hampering economic vitality and the recession in the South Bay and throughout the State. In addition, the Agency has revenue sharing agreements with the County, three School Districts and Mid -Peninsula Regional Open Space District that will reduce the revenues available for Agency projects. The cost of Agency administration, the payment of the debt service on the bonds for Parking Lot #4 and the repayment of the loan from the Town that was required to set up the Agency will further reduce revenues to the Agency for additional redevelopment projects. 13 ATTACHMENT 1 LOS GATOS REDEVELOPMENT AGENCY Goals And Objectives Link To Blighting Condition Matrix Infrastructure Economic Conditions Physical Conditions it Inadequate Public Improvements Deteriorated/ Inadequate Utilities > > Economically Obsolete/Lack of Parking Hazardous Materials Low Property Values Deterioration/ Dilapidation Correction of Infrastructure Deficiencies & Inadequate Public Facilities, Improvements Unsafe/ Unhealthy Buildings Goals and Objectives Strengthening Retail & Other Commercial Functions Expansion & Improvement of Low/Moderate Income Housing ATTACHMENT 2 Infrastructure Physical Conditions Inadequate Public Improvements Deteriorated/ Inadequate Utilities Economically Obsolete/Lack of Parking > > > Hazardous Materials °' J o Ti a> > > Unsafe Buildings Programs Downtown Streetscape Improvement Provision of off Street Parking Commercial Loans/Grants Reconstruct Storm Drains m Q. x Revenue Sharing with Schools/Parks ATTACHMENT 3 LOS GATOS REDEVELOPMENT AGENCY FIVE-YEAR IMPLEMENTATION PLAN PROPOSED PROGRAM EXPENDITURES rn ON i 00 °` 0 0 0 . 0 m 69 00 rn c` °` 0 0 o o O o s 9 N rn 01 o 0 0 ON 0n QN 0 0 69 0 0 o 69 0 0 o_ 69 0 0 o_ 69 0 0 _o 69 1994-95 O 0 CO 69 O O 0 0 69 O O vl 69 Program Expenditures Benches & Receptacles Landscape Planters Sidewalk Cleaner Safety Grates Beautification Televise Storm Drains Public Parking Reconstruct Massol Storm Drain N:\DEV\RDA\IMPLMENT.AT3 APPENDIX A PRE - AB 1290 BLIGHT FACTORS The physical factors defined in the Law were buildings and structures that are unsafe due to one or more of the following: a) defective design and construction b) faulty interior arrangement and exterior spacing c) high density population or overcrowding d) inadequate light, ventilation, sanitation, open spaces and recreation facilities e) age, obsolescence, deterioration, dilapidation, mixed character or shifting use The socioeconomic factors are: a) the existence of parcels of shape and size inadequate for proper development b) existence of lot layouts that are incompatible with topographic or physical conditions c) the existence of inadequate public improvements, government facilities, open spaces and utilities which cannot be remedied by private or governmental action without redevelopment d) prevalence of depreciated values, impaired investments and social and economic maladjustment 17 APPENDIX B POST - AB 1290 BLIGHT FACTORS Physical conditions that cause blight: (1) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. (2) Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. (3) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. (4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. Description of economic conditions that cause blight: (1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of Agency authority as specified in Article 12.5 (commencing with Section 33459). (2) Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. (3) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. (4) Residential overcrowding or an excess of bars, liquor stores or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. (5) A high crime rate that constitutes a serious threat to the public safety and welfare. 18 REDEVELOPMENT PLAN PROPOSED PUBLIC IMPROVEMENTS ■ Provision of Infrastructure Improvements The provision of infrastructure improvements is a critically important component of the proposed redevelopment program. Such improvements include street reconstruction, the paving of alleys, downtown streetscape improvements, and the reconstruction of storm drains and sanitary sewers, including but not limited to the following: A. Street Reconstruction Program Almond Grove neighborhood Other project area streets B. Alley Improvements Paving Drainage systems C. Downtown Streetscape Improvements Sidewalks Street trees and safety grates D. Storm Drain Reconstruction Program University Avenue/Roberts Road New York Avenue/Pleasant Street Bachman/Glenridge Massol Avenue/Tait Avenue trunk Pennsylvania Avenue trunk Lyndon Avenue box culvert replacement Reservoir Road -Cleland to Forbes Mill E. Sanitary Sewer Reconstruction Program College Avenue (Villa to E. Main Street) University Avenue (Elm Street to Miles Avenue) Elm Street (N. Santa Cruz to University Avenue) Grays Lane (N. Santa Cruz to University Avenue) Bella Vista (New York to Saratoga) ■ Community Facilities and Buildings The redevelopment program would provide limited funding for community facilities and buildings. Primary emphasis would be on geologic investigations, structural analysis, rehabilitation, expansion and the seismic retrofit of buildings in the Civic Center. ATTACHMENT INTERNAL TRACKING DEPTMENT: AGENDA ITEM: RESO/ORD NUMBER: / 9 1/4 IY pg� i99yJ p LIST IN BOOK ON DISC OR SHARE. FORM SENT TO DEPT. PUBLISH IF REQUIRED - Date of Publication ORDINANCES ONLY WHEN SIGNATURE AND /s/ COPY (1 EACH) returned, LIST ON SIGNATURE TRACKING & SEND TO MAYOR % �� 3 - MAIL TO DISTRIBUTION LIST NO.of COPIES: PROOF OF MAILING PREPARED SIGN BY CLERK/SEAL ENTER INTO ECM ORDINANCE/RESOLUTION FILE FILE IN VAULT CODIFICATION IF ORDINANCE ! cik:d16:1other1ordres2 OFFICE OF THE TOWN CLERK ORDINANCES & RESOLUTIONS ORIGINATING DEPT: COUNCIL AGENDA DATE: COUNCIL AGENDA ITEM: SUBJECT: Number: Date of Adopt: RESOLUTION /6W) — 246 3J3/ : PUBLICATION REQUIRED: COUNCIL ACTION: AYES: NAYS: ABSENT: ABSTAIN: 43/4/.., COUNCIL MEMBERS NAMES: Number: Date of Intro: Date of Adopt: ZONE CHANGE: Randy Attaway, Steven Blanton, Jan Hutchins, Linda Lubeck, Mayor(or Chairman) JOANNE BENJAMIN ORDINANCE ORDINANCES and RESOLUTIONS MUST BE RETURNED TO TOWN CLERK BY WEDNESDAY AT 12 NOON. ORDINANCES MUST BE READY FOR IMMEDIATE PUBLICATION TC: D7: RESO.ORD RESOLUTION 1997- 4RD RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS AMENDING THE FIVE YEAR IMPLEMENTATION PLAN FOR THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT AREA TO INCLUDE PUBLIC PARKING WHEREAS: 1. The Redevelopment Agency of the Town of Los Gatos has approved and adopted a Redevelopment Plan for the Central Los Gatos Redevelopment Project Area (the "Project Area"); and 2. Pursuant to Health and Safety Code Section 33490, the redevelopment Agency of the Town of Los Gatos (the "Agency") is required to conduct a duly noticed public hearing to consider the Amended Implementation Plan for the Project Area (the "Implementation Plan"); and 3. The provision of expanded and improved public parking in support of downtown businesses is identified in the Redevelopment Plan as an essential component of the redevelopment program; and 4. The Agency has determined that additional public parking is needed to alleviate parking congestion within the Project Area; and 5. Agency staff has prepared and presented to the Agency an Implementation Plan that includes public parking as a proposed program, a copy of which is on file with Agency Secretary; and 6. On the date of this resolution, the Agency conducted and concluded a duly noticed public hearing on the Implementation Plan in accordance with Health and Safety Code Section 33490; and 7. The Implementation Plan, with any modifications as considered and approved in connection with the public hearing, constitutes a statement of the Agency's goals and objectives for the Project Area, a summary of the specific programs and proposed expenditures proposed to be made by the Agency during the 1995-1999 five year period, an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area as required by the Community Redevelopment Law; and 8. The Implementation Plan is consistent with the Redevelopment Plan; and 9. Pursuant to Health and Safety Code Section 33490, approval of the Implementation Plan does not constitute a project for purposes of the California Environmental Quality Act ("CEQA"), and therefore no environmental documentation is required pursuant to CEQA. RESOLVED, that the Agency hereby approves and adopts the Amended Implementation Plan for the Central Los Gatos Redevelopment Project. FURTHER RESOLVED, the Agency hereby authorizes the Agency Executive Director to take such other actions as are appropriate to effectuate the intent of the Amended Implementation Plan. FURTHER RESOLVED, that this Resolution and the Amended Implementation Plan shall take immediate effect upon adoption. PASSED AND ADOPTED at a regular meeting of the Redevelopment of the Town of Los Gatos, California, held on the 3rd day of March, 1997 by the following vote. REDEVELOPMENT AGENCY MEMBERS: AYES: Randy Attaway, Steven Blanton, Jan Jutchins, Linda Lubeck, Chair Joanne Benjamin NAYS: None ABSENT: None ABSTAIN: None SIGNED: /s/ Joanne Benjamin CHAIR OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove SECRETARY OF THE REDEVELOPMENT AGENCY TOWN OF LOS GATOS, CALIFORNIA N :ISHAREIRDA3397. R-4 TOWN OF LOS GATOS CALIFORNIA JOINT TOWN COUNCIL/REDEVELOPMENT AGENCY March 3, 1997 Minutes REDEVELOPMENT AGENCY/TOWN COUNCIL The Redevelopment Agency/Town Council of the Town of Los Gatos met in the Council Chambers of Town Hall, 110 E. Main St., at 11:21 p.m. Monday, March 3, 1997, in regular session. ROLL CALL Present: Randy Attaway, Steven Blanton, Jan Hutchins Linda Lubeck, and Chairman/Mayor Joanne Benjamin. Absent: None. ACCOUNTS PAYABLE/RATIFICATION/FEBRUARY 1997 (01.V) Motion by Mr. Blanton, seconded by Mr. Attaway, that the Agency ratify the accompanying check register for accounts payable invoices paid on February 21, and February 28, 1997, in the amount of $20,957.97. Carried unanimously. PAYROLL RATIFICATION/JANUARY-FEBRUARY (02.V) Motion by Mr. Blanton, seconded by Mr. Attaway, that the Agency ratify the check register in the amount of $7,925.24 for the payroll of January 26, 1997 through February 8, 1997 paid on February 14, 1997. Carried unanimously. MINUTES OF FEBRUARY 18, 1997 (03.V) Motion by Mr. Blanton, seconded by Mr. Attaway, that the Minutes of February 18, 1997, be approved as submitted. Carried unanimously. HEARING FIVE YEAR IMPLEMENTATION PLAN/PUBLIC PARKING/RESOLUTION 1997-4RD (04.49) Chairman Benjamin stated that this was the time and place duly noted for public hearing to consider adopting resolution amending the five year implementation plan for the Central Los Gatos Redevelopment Project to include Public Parking. No one from the audience addressed this issue. Motion by Mr. Blanton, seconded by Mr. Hutchins, to close the public hearing. Carried unanimously. Motion by Mr. Hutchins, seconded by Mrs. Lubeck, that The Agency adopt Resolution 1997- 4RD entitled, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS AMENDING THE FIVE YEAR IMPLEMENTATION PLAN FOR THE CENTRAL LOS GATOS REDEVELOPMENT PROJECT AREA TO INCLUDE PUBLIC PARKING. Carried unanimously. TC: D8: RA030397 March 3, 1997 Los Gatos, California OLD TOWN PARKING/NEGOTIATIONS/COUNCIL-AGENCY AGREEMENT (05.49) Mayor/Chairman Benjamin stated that this was the time and place duly noted to consider report on negotiations regarding Old Town parking, provide direction to staff as appropriate and set March 17, 1997 for Agency/Council consideration of an agreement. The following people from the audience spoke to this issue: Maggie Creighton, representing the Residents and Merchants Committee for New Parking, thanked the staff and Town for the efforts put forth to help the committee with their goal of obtaining the 105 spaces in the Old Town parking lot. She reaffirmed the ability to collect on the pledges that have been received for the parking lot. She assured Council that the funds would come in but the collection of the last 20,000 might take a little longer. Michael Petteruti, Corinthian International Parking Company, 19925 Stevens Creek Blvd., Suite 126, Cupertino. Spoke of his company's garage management, valet parking, traffic control, employee parking program, and submitted information concerning this company for the record. He noted that while the parking structure was under construction and the current parking spaces were unusable, his company could assist in juggling the remaining parking spaces in a creative manner. Bill Bacci, 216 N. Santa Cruz, noted that he stood behind his pledge and felt that most people who are in business in Town would stand behind their commitments. He appreciated everyone's efforts on this project. Bobbie Kramer, East Los Gatos resident, spoke of the average citizen's input. Rex Morton, Parking Commission Chair, spoke of having representatives from all segments of the community for the continuation of the parking committee in a Downtown Parking Strategic Planning Advisory Group and represented on the Parking Commission. He felt that the $100,000 commitment could easily be exceeded by the Committee for Parking. Ed Storm, Old Town owner, committed himself and staff to working on this agreement immediately, and noted that it is their goal to have plans and contract drawn up by March 17th. He asked that the commitment of the $100,000 be written up in the contract also so that the Storm -Hunter team is assured of an agreement before they move forward on the plans. They are proceeding in this direction and spending money and they would like a hard contract to the effect that the Committee and Town will follow through. No one else from the audience addressed this issue. Motion by Mrs. Benjamin, seconded by Mr. Hutchins, that staff continue to move forward on the negotiations regarding Old Town Parking, and set March 17, 1997 as the date certain for Agency/Council consideration of an agreement. That agreement will reflect the course of action outlined in this agenda's staff report. Carried unanimously. ADJOURNMENT Motion by Mr. Attaway, seconded by Mr. Blanton, that the Council/Agency adjourn this evening's joint meeting at 11:47 p.m.. Carried unanimously. ATTEST: Marian V. Cosgrove Town Clerk Secretary to the Redevelopment Agency IC: D8: RA030397