Item 1 Addendum Consideration and Action Upon the Redevelopment Plan for the Central Los Gatos Redevelopment Project ("The Redevelopment Plan") and Consideration of All Evidence and Testimony for or Against the Approval and Adoption of the Redevelopment PJOINT COUNCIL/AGENCY AGENDA
DATE: 11 /12/91
ITEM NO. 1
ADDENDUM
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: November 8, 1991
TO: TOWN COUNCIL/CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: TOWN MANAGER/EXECUTIVE DIRECTOR
SUBJECT: CONSIDERATION AND ACTION UPON THE REDEVELOPMENT PLAN FOR THE
CENTRAL LOS GATOS REDEVELOPMENT PROJECT (THE "REDEVELOPMENT PLAN")
AND CONSIDERATION OF ALL EVIDENCE AND TESTIMONY FOR OR AGAINST THE
APPROVAL AND ADOPTION OF THE REDEVELOPMENT PLAN; CONSIDERATION OF
THE FINAL ENVIRONMENTAL IMPACT REPORT (EIR) FOR THE REDEVELOPMENT
PROJECT; AND CONSIDERATION OF ALL EVIDENCE AND TESTIMONY FOR OR
AGAINST THE CERTIFICATION OF THE FINAL EIR
The attached memorandum was submitted after Council agenda report had been prepared and distributed.
Please attach to report.
PREPARED BY: DAVID W. KNAPP, Town Manager/Executive Director
DWK:pm 11/8/91 5:16 pm
MGRO38 A:\CNCLRPTS\11-12-1
Attachment:
2. 11 /8/91 memorandum from Dr. Fred Prochaska, Director of Grants and Development - West Valley -
Mission Community College District
Reviewed by:
Attorney Clerk Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
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Inter -Office Memorandum
FROM: Dr. Fred Prochaska, Director of Grants and Development `q�
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West Valley -Mission Community College District
Honorable Members of the Council, Town of Los Gatos
DATE: November 8, 1991
SUBJECT: IMPACT OF THE PROPOSED REDEVELOPMENT AGENCY PROJECT ON
THE WEST VALLEY -MISSION COMMUNITY COLLEGE DISTRICT
This memorandum summarizes the impact of the proposed Los Gatos
Redevelopment Agency Project on the West Valley -Mission Community College
District. The Town of Los Gatos and the proposed new redevelopment area are
located entirely within the boundaries of our District. The new redevelopment zone is
approximately four miles from the West Valley College campus site and twelve miles
from the Mission College campus site.
The West Valley -Mission Community College District highly values its relations with
the communities it serves, and supports the Town of Los Gatos in its drive to enhance
its residential, business, and cultural assets. Los Gatos residents comprise a major
segment of the district's student enrollment. While the Los Gatos redevelopment
zone will comprise only slightly more than 1% of the assessed property tax roll base in
the District, Los Gatos residents make up more than 7% of the total West Valley
College credit enrollment, and more than 10% of the college's community education
non-credit enrollment.
During the Fall, 1990 Semester, for example, Los Gatos residents comprised 1,088
students in West Valley College's credit classes, 7.4% of the college's total enrollment
of 14,652. An additional 89 Los Gatos residents attended Mission College during that
same semester. The average age of' our Los Gatos students is 32. More than 62% of
our Los Gatos students are women, compared to 58% of the college's total enrollment.
In addition to the Los Gatos students enrolled in credit classes, a total of 1,560 Los Gatos
residents enrolled in West Valley's Community Education classes. 560 Los Gatos
senior citizens participated in West Valley College's Older Adults program, 520
children from Los Gatos schools attended our special programs designed for them, and
480 residents of Los Gatos attended other Community Education classes --such as those
designed for small business development. In our Older Adults program alone, the
District provides classes at ten sites within the Los Gatos Town limits, most of which
are in the proposed new Redevelopment Area. These include classes at the Bethesda
Convalescent Hospital, Adair Village, Jewish Community Center, Lark Manor
Convalescent Hospital, Live Oak Adult Day Care Center, Los Gatos Community
Hospital, Los Gatos Convalescent Hospital, Los Gatos Meadows, Oak Meadows, and
Terreno De Flores.
Town of Los Gatos Redevelopment Memorandum November 8, 1991 Page Two
During the 1990-91 academic year, well over 2,700 Los Gatos residents were enrolled in
classes at West Valley College as well as about 300 at Mission College. In any given
semester, about 10% of the total population of Los Gatos, and about 13% of its adult
population, enroll in classes provided by the West Valley -Mission Community College
District ---a proportion that is more than 50% higher than most other communities in
the District's service area. The students who enroll at West Valley and Mission
Colleges are predominantly part-time (72%), hold jobs (82%), and are taking classes to
advance their careers. The additional economic activity generated by the Los Gatos
Redevelopment project will surely have a significant impact on the District's enroll-
ment demand. We estimate that the redevelopment program will increase our Los
Gatos enrollment by at least 20% within 10 years and by 30% within the next 25 years.
Unfortunately, the state's funding structure for community colleges will not support
enrollment growth beyond the level of 1% per year. The district has been well over its
enrollment cap for each of the past four years and is now operating at about 6% over
cap. Demand for additional services, and especially for classroom and program
facilities, greatly exceeds our budget capacity. At the present time more than $115
million in district capital outlay needs have been documented, including at least $55
million for West Valley College. This list will surely increase by at least three fold
during the next 40 years. Existing and projected future funding sources are expected to
cover only a fraction of our needs.
The West Valley -Mission Community College District is therefore requesting that the
Town of Los Gatos Redevelopment Agency approve its request to receive 40% of the
District's share of tax increments, rather than the 20% share that the Agency has
proposed. According to the Agency's estimates, this would increase the District's total
40-year allocation from $3.8 million to $7.6 million. Furthermore, the District is
concerned that the state in future years might amend its allocation procedures to
community colleges in a manner that would further erode our funding base. We
request that the Los Gatos Redevelopment Agency adopt a "hold -harmless" provision-
-one that will provide for an increased allocation to offset any losses to our revenues
directly caused by the Town's Redevelopment program.
In the absence of a fair and equitable agreement which recognizes the increase in
demand for our colleges' services, the West Valley -Mission Community College
District will have no alternative than to oppose the Los Gatos Redevelopment Plan.
The West Valley -Mission Community College District strongly supports the Town of
Los Gatos in its efforts to improve its resources, and stands ready to provide assistance
as its plan moves toward the implementation phase. We believe that the increased
level of educational services that will be made possible by approval of our request
mentioned above will significantly strengthen both the Town's economic base, and
more importantly, increase the overall quality of life for Los Gatos residents.
RESOLUTION 9111071
ELECTING TO RECEIVE ALLOCATION OF TAXES
WHEREAS, Section 33676 of the Community Redevelopment Law (Sections 33000 et seq. of
the California Health and Safety Code) (the "Law") provides that any affected taxing agency
may, and school districts shall, elect to be allocated, in addition to that portion of 33670 of
the Law, all or any portion of the tax revenues allocated to a Redevelopment Agency
pursuant to subdivision (b) of said Section 33670 attributable to increases in the District's tax
rate which occur after a Redevelopment Plan becomes effective; and
WHEREAS, the Redevelopment Agency of the Town of Los Gatos plans to adopt a
Redevelopment Plan pursuant to the Law; and
WHEREAS, the West Valley -Mission Community College District may at some future date
be legally permitted to increase its tax rate and wishes to insure that the revenues resulting
from such increase are available for increasing and improving public school services within
the boundaries served by the District.
NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees of the West Valley -
Mission Community College District hereby elects to be allocated, in addition to the portion
of taxes allocated to this District pursuant to Subdivision (a) of Section 33670 of the
California Health and Safety Code, all of the tax revenues allocated to the Redevelopment
Agency of the Town of Los Gatos pursuant to subdivision (b) of said Section 33670 due to
the following:
(1) Increases in the District's tax rates which occur after the tax year in which the
ordinances adopting the Redevelopment Agency Plan become effective; or
(2) Increases in the assessed value of the taxable property in the Redevelopment Project
Area, as the assessed value is established by the assessment roll last equalized prior to
the effective date of the Ordinance adopting the Redevelopment Plan pursuant to
Subdivision (a) of Section 33670, which are, or otherwise would be calculated annually
pursuant to Subdivision (f) of Section 110.1 of the California Revenue and Taxation
Code.
BE IT FURTHER RESOLVED, that the Secretary is hereby directed to file forthwith certified
copies of this resolution with the governing body of the Redevelopment Agency of the
Town of Los Gatos, the Board of Supervisors of the County of Santa Clara, the Office of
Auditor -Controller, and the Tax Collector for the County of Santa Clara.
(7(
Date
West Valley -Mission Community Cal1ege District
1-14
•
Dr. Fred Prochaska
Director of Grants
and Development
West Volley -Mission
Community
College District
14000 Fruitvole Avenue
Saratoga, CA 95070-5698
(408) 741-2095
Fox (408) 867-9523
TOWN OF LOS GATOS
CALIFORNIA
TOWN COUNCIL/REDEVELOPMENT AGENCY
November 12, 1991
Minutes
TOWN COUNCIL/REDEVELOPMENT AGENCY
The Town Council/Redevelopment Agency of the Town of Los Gatos met in the Council
Chambers of the Town Hall, 110 East Main Street, at 7:38 p.m., Tuesday, November 12, 1991,
in adjourned regular session of the Town Council and a regular meeting of the Redevelopment
Agency for a joint public hearing.
ROLL CALL/COUNCIL-AGENCY
Both the Town Council and the Redevelopment Agency rolls were called at this time.
Present: Randy Attaway, Joanne Benjamin, Steven Blanton,
Vice-Mayor/Chairman Eric D. Carlson.
Absent: Mayor/Chairman Brent N. Ventura.
PROCEDURAL OUTLINE
The Clerk has made a copy of the Procedural Outline of the Joint Public Hearing on Adoption
of Redevelopment Plan for the Central Los Gatos Redevelopment Project and Certification of
Final EIR Relating Thereto, including all exhibits which are referenced therein, a certified part
of this record as Exhibit A.
VERBATIM TRANSCRIPTION
The verbatim transcription executed by a certified court reporter will be made a part of this
record and be attached hereto as Exhibit B.
HEARING
REDEVELOPMENT PLAN/CENTRAL LOS GATOS PROJECT/HEARING
FINAL ENVIRONMENTAL IMPACT REPORT AND CERTIFICATION
Vice-Mayor/Chairman Carlson stated that this was the time and place duly noted for public
hearing to consider and take action upon the Redevelopment Plan for the Central Los Gatos
Redevelopment Project (The "Redevelopment Plan") and all evidence and testimony for or
against the approval and adoption of the Redevelopment Plan; to consider the Final
Environmental Impact Report (EIR) for the Redevelopment Project; and to consider all
evidence and testimony for or against the certification of the final EIR.
SWORN TESTIMONY
The Court Reporter had staff, consultants and members of the audience swear to the authenticity
of their testimony in a single oath. Those speaking to Council/Agency regarding redevelopment
were asked to sign in before their presentation as Exhibit C.
REDEVELOPMENT AGENCY REPORT
The following people on Town Staff and Town Consultants entered material for the record:
Bud Lortz, Town Planner, submitted for the record Exhibit "1", Affidavit of Publication; Exhibit
"2", Certificate of Mailing Notice to Property Owners; Exhibit "3", Certificate of Mailing Notice
to Taxing Agencies.
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November 12, 1991
Los Gatos, California
AGENCY REPORT CONT.
Dave Beatty, Special Counsel, McDonough, Holland & Allen, presented twelve findings and
determinations as contained in Section 33367 of the Health and Safety Code as the major
evidentiary findings, and to be found in the Procedural Outline labeled Exhibit A.
Bud Lortz, entered Exhibit "4", Certification of Certain Official Actions into the record.
Lee Bowman, Director of Town Planning Department, explained the preliminary steps in
developing a redevelopment project immediately following the 1989 earthquake as a tool to aid
in recovery. Submitted for the record was the Zephyr Associates report, "Alternative Financial
Strategies for Reconstruction" as Exhibit D. The report concluded that redevelopment and a
business improvement district would aid in reconstruction. The "Commercial Specific Plan
Committee's Final Report", Exhibit E, was also submitted for the record. This report outlines
specifics to aid in earthquake recovery which included redevelopment as a major tool. Mr.
Bowman also submitted for the record a video tape, Exhibit F, of the sewers in the Town that
were damaged by the earthquake, including a log identifying the earthquake damage, Exhibit G.
John Dykstra, Consultant, Dykstra & Associates, submitted the "Report on the Redevelopment
Plan", October 1991, which is the "Report of the Agency to the Town Council", Exhibit "5", and
also supplemental testimony to be considered part of that report. Submitted for the record at
the same time was the "Report on Existing Conditions", Exhibit H, which defines the blighted
conditions and the need for redevelopment. It defines geologic hazards, earthquake faults and
quake probability, and the potentially hazardous buildings. The blighted conditions of the area
were also summarized.
Scott Baker, Director of Town Building Services, submitted the list of 950 known structures
damaged by the Loma Preita Earthquake of October 1989 appearing in the "Earthquake Damage
Assessment Status Report", Exhibit I, compiled by the Building Department.
Stephanie Smith-Lovette, Consultant of Sutro & Co., discussed the financial feasibility of the plan
and introduced into the record a letter from Sutro & Co., Exhibit J, discussing the financial
feasibility of the Central Los Gatos Plan, and discussed the proposed revenue sharing agreements
to be acted on later in the evening.
FINAL ENVIRONMENTAL IMPACT REPORT
Ted Kreines, Consultant for Kreines & Kreines, EIR Consultants, summarized the final EIR
report. Analysis of the project was done under the following subjects: seismic retrofits;
residential rehabilitation loans and grants; commercial rehabilitation loans and grants; provision
of infrastructure improvements; community facilities and buildings; low to moderate income
housing; public parking facilities; and public transit facilities. From the original draft
concerning impacts sent to the impacted taxing agencies there were four letters in response.
These were from the Santa Clara County Transportation Agency, Santa Clara Valley Water
District, Santa Clara County, and the law offices of McDonough, Holland & Allen which were
submitted for the record and made a part of the Report of the Agency as Exhibit "6".
REDEVELOPMENT PLAN
Dave Beatty, Special Counsel, McDonough, Holland & Allen, reviewed the proposed
Redevelopment Plan and submitted it for the record as Exhibit "7".
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November 12, 1991
Los Gatos, California
OWNER PARTICIPATION RULES
Bud Lortz, Town Planner, entered into the record, as Exhibit "8", the Rules Governing
Participation by Property Owners, and the Extension of Reasonable Preferences to Business
Occupants in the Central Los Gatos Redevelopment Project, as said Rules have been adopted
by the Agency.
WRITTEN COMMENTS
Bud Lortz, read into the record Exhibit "9", "Written Comments Received." They were from
Kevin (Fruish), (an unintelligible signature referred to as Mr. Smith in staff discussion), Oct. 29,
1991; two missives from Stephen Parsons, 101 Johnson Hollow, Los Gatos, 95032, Nov. 6, 1991;
one from Dr. Fred Prochaska, representing West Valley -Mission Community College District,
Nov. 8, 1991; and a document from Frank Lockfeld entitled "Rejoinder to {Analysis of the
Report of the Fiscal Review Committee, Central Los Gatos Redevelopment Project}."
AUDIENCE PARTICIPATION
The court recorder administered oaths individually to those who had not taken the oath
previously.
The following people form the audience spoke in favor of the proposed redevelopment project:
John Lien, 196 College Ave., views the project as a positive situation for all agencies involved
and believes redevelopment is needed to improve the livelihood of the town. He feels that the
town will benefit from the 20% funding planned for housing.
Rick Miller, 16873 Placer Oaks, representing the Chamber of Commerce, stated that the Board
of Directors strongly endorses the proposed plan feeling it is a necessary step in the recovery
from the 1989 earthquake.
Rex Morton, 51 University Ave., Suite I, Chairman of Parking Commission, stated that the
Parking Commission voted in support of the plan, because the parking improvements included
in the plan are greatly needed.
Joe Hargett, 95 Church St., President Downtown Association, stated that the Association supports
the plan because the downtown area will benefit from landscaping, loans for reparations of
buildings, and parking improvements.
Fred Prochaska, Director of Grants and Development for West Valley -Mission Community
College District, expressed the District's support of the proposed plan. He also submitted
additional materials for the record, Exhibit K.
Jack Matlock, Consultant to Los Gatos Elementary, West Valley -Mission College and Santa
Clara County Office of Education, School Districts, assisted these districts in redevelopment
related agreements. He thanked the Town Manager and staff for working with the districts, and
for realizing that students are one of the most important elements of the community.
Charles Tuzar, 167 Villa Ave., expressed his 100% support of the project.
Richard Gaines, 340 Johnson Avenue, supports the plan, but is concerned that not enough
improvements will be made in residential areas. He feels that sewer improvements,
undergrounding of utilities, and affordable loans are necessary, and would like to have the
problems on Johnson Ave. solved as soon as possible.
Pauline Crawford, 25 Hernandez Avenue, supports the project but feels that more money needs
to be spent on improvements in the residential areas.
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November 12, 1991
Los Gatos, California
AUDIENCE PARTICIPATION CONT.
Those in support of proposed project continued:
Steve Benbow, 154 Kensington Way, Los Gatos Union School District Superintendent,
representing the Board of Trustees, supports the proposed agreement enabling the school district
to assist the town in proceeding with redevelopment.
The following people from the audience spoke in opposition of the proposed redevelopment
project:
Frank Lockfeld, County of Santa Clara, stated that the County does not object to the project
itself, but to the method in which it is being financed. The County regrets that though the
Town attempted to alleviate some of the burden placed on the County, the remaining burden
is far to great for the County ($ 12 million over life) and the Central Fire District ($ 26 million
over life) to accept the Town's proposal. He suggested a pass through agreement which the
County submitted to the Town.
David Knapp, Town Manager, responded to Council's question as to how much money they
estimate the Fire District really looses from the redevelopment project. He stated it is very hard
to tell because costs have to be estimated in present value. The Town also provides stations
within the Town for the Fire District, a service not provided by other communities, resulting in
a substantial benefit for the County. He also noted that the Town is a small percentage of the
Central Fire District's entire budget, and the redevelopment area is still a smaller portion of the
Town, approximately one tenth of one percent of the fire district.
Stephanie Lovette, Financial Consultant of Sutro & Co., stated that she believes the total amount
lost by the Central Fire District will be 3 to 4 million dollars over the life of the project, not the
26 million estimated by the County.
Mr. Beatty, Consultant to the Town, addressed the fact that the County was requesting 100%
pass through of funds raised due to redevelopment, but was not willing to contribute to the costs
associated with the creation of the redevelopment project.
Sam Yablonsky, 132 Tait Avenue, spoke as a resident of the project area and could see no
reason for having this project put in place at this time. He felt that public works equipment
could continue to refurbish the streets and alleys and that residents should vote on this new
approach to financing. His concern regarding taxes and assessments was answered by staff
stating that the Redevelopment Agency does not have the authority to raise property taxes or
impose assessments.
Mary Lou Flynn, 209 Nob Hill Way, concurred with the previous speaker, and feels that the
streets throughout town should be attended to, specifically University Ave.
Kirk McKenzie, 12 Bayview Ave., requested information from Council and answers to his
questions. Staff explained that the power of eminent domain for residential properties was
relinquished by Council in the proposed project area, and this action could not be changed
unless the project area was amended. Amendment process is virtually the complete process
gone through to define and implement a redevelopment project area. The second question
related to the date that data was gathered on properties listed in the report. June of 1991 was
the answer. Thirdly the pass -through mechanism of the taxing agency agreements was
questioned. This was explained as a joint effort in tax revenue sharing to satisfy as much of the
school district's needs while leaving enough funds to enable the agency and bring about the
recovery from the earthquake which supposes a rise in tax base revenue.
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4
November 12, 1991
Los Gatos, California
AUDIENCE PARTICIPATION CONT.
Lee Quintana, 5 Palm Ave, perceives the need of more concrete policy delineation in the plan
before it is adopted. She questioned the exemption of single family dwellings but not multiple
family dwellings in regards to the eminent domain policy, expressing the need to protect
multiple -family housing in the district.
No one else from the audience addressed this issue.
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council/Agency close this public
hearing. Carried by a vote of 4 ayes. Mayor/Chairman Ventura absent.
ADJOURNMENT/TOWN COUNCIL/REDEVELOPMENT AGENCY/JOINT MEETING
Motion by Mr. Attaway, seconded by Mr. Blanton, that the Town Council and Redevelopment
Agency adjourn this evening's joint session at 9:40 p.m. and that the Redevelopment Agency
reconvene after a short recess to an adjourned regular session. Carried by a vote of 4 ayes.
Mayor/Chairman Ventura absent.
A'1'1'EST:
Marian V. Cosgrove
Town Clerk/Secretary to the Redevelopment Agency
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