HomeMy WebLinkAbout93-007 - Public Improvements to be Owned by the Rancho Santiago Community College037
RESOLUTION NO. 93-007
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA CONSENTING TO THE
PAYMENT BY THE COMMUNITY REDEVELOPMENT
AGENCY OF COSTS TO BE INCURRED FOR PUB-
LIC IMPROVEMENTS TO BE OWNED BY THE
RANCHO SANTIAGO COMMUNITY COLLEGE DIS-
TRICT AND MAKING CERTAIN DETERMINATIONS
WITH RESPECT THERETO
WHEREAS, the Community Redevelopment Agency of the city of
Santa Ana (the "Agency") proposes to enter into an agreement with
the Rancho Santiago Community College District (the "District")
whereby the Agency commits to reserve a certain portion of its
future tax increment revenues from the project area of the Santa
Ana South Harbor Boulevard/Fairview Street Redevelopment Project to
pay for part of the cost of public improvements to be owned by the
District; and
WHEREAS, pursuant to section 33679 of the Community Redevelop-
ment Law (California Health and Safety Code §§ 33000 et seq.) a
summary has been prepared which sets forth:
Estimates of the amount of such taxes proposed to be used to
pay for land for, and construction of, such improvements,
including interest payments;
The facts supporting the determinations required to made by
this City Council pursuant to section 33445 of the Community
Redevelopment Law, as set forth hereinbelow;
The redevelopment purpose for which such taxes are being used
to pay for the land and construction of such improvements;
which summary is attached hereto as Exhibit A, and incorporated
herein by reference; and
WHEREAS, prior to the approval of the abovesaid agreement,
this Council and the Agency have held a joint public hearing on the
matter;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SANTA ANA AS FOLLOWS:
1. The findings of fact set forth in the summary attached
hereto as Exhibit A are hereby approved and adopted.
2. Based upon such findings, this Council determines as
EESOLUTIOE 93-007 039
Page 2
follows:
The buildings, facilities, structures, and other improve-
ments which are the subject of the abovesaid agreement
are of benefit to the project area of the Santa South
Harbor Boulevard/Fairview Street Redevelopment Project,
and to its immediate neighborhood, regardless of whether
they are located in another project area.
b. No other reasonable means of financing such buildings,
facilities, structures, or other improvements, are
available to the community.
3. The City Council hereby consents to the payment by the
Agency of part of the costs of improvements to be owned by the
District in accordance with the abovesaid agreement.
ADOPTED this 19th day of January , 1993.
ATTEST:
~C~e~eo~ '~eUYc~unc~ /
Mayor
COUNCILMEMBERS:
Young Aye
Pulido ~h~ent
Lutz Aye
Mills
Moreno
Norton Aye
Richardson Aye
APPROVED AS TO FORM:
Edward ~. Coq
City Attorney
2
040
CERTIFICATE OF ORIGINALITY
State of California
County of Orange
I, JANICE C. GUY, Clerk of the Council, do hereby certify the
attached Resolution
to be the original resolution
y the city Council
of the City of Santa Ana on
/wlq3
~'Clerk of the Coun~ 1~, Date
City of Santa Ana
RESOLUTION 93-007
SUMIVLARY OF PROPOSED PAYMENT OF COST OF LAND,
INSTALLATION, AND CONSTRUCTION OF PUBLICLY
OVVNED BUILDINGS PURSUANT TO HEALTH AND SAFETY
CODE SECTIONS 33445 AND 33679
'041
Section A
ESTIMATE OF THE AMOUNT OF SUCH TAXES PROPOSED TO BE USED TO PaY FOP,
SUCH LAND AND CONSTRUCTION OF ANY PUBLICLY OVVNED BUILDING,
INCLUDING INTEREST PAYMENTS [Section 33679(a) of the Health and Safety Code]
The buildings, facilities, structures or other improvements (collectively "EJigible Capital
Improvementf') to be funded in whole or in part with tax instrument revenues as set forth in
the Capital Facilities Agreement ("Agreement") between the Rancho Santiago Community College
District ("District'~ and the Santa Ana Community Development ("Agency'S, are or will be
owned and/or leased by the District. The District is the community college district authorized
by the State of California to provide educational curriculum and facilities to the residents of the
City of Santa Ana ("City'S. The District provides post-secondary educational curriculums;
continuing adult education; non-credit, personal interest, and fee-supported classes; conferences
and workshops; undergraduate general education courses; certified training programs and
contract education to business and industry; high school diplomas; English-as-a-Second Language
courses; older adult courses; and vocational testing, job training, and employment services; etc.
The Eligible Capital Improvements as set forth in the Agreement will be partially funded through
tax increment over the term of the South Harbor Boulevard/Fairview Avenue Redeve)opment
Plan ("Redevelopment P~an" or "Plan'S. The amount of tax increment to be applied to the
Capital Facilities is estimated to range from $31,500,000-$34,400,000 (+/-), assuming an assessed
valuation average annual increase of 5.00% for secured valuations and 4.00% for unsecured
valuations, or a present value range of $ I 0,000,000-$ I 1,000,000 (+/-), at a discount rate of 4.0%.
In addition to the estimated tax increment proposed to be received by the District, the
Agreement provides for an additional financial benefit of $9,000,000 to be applied to specifically
identified facilities. The A~reement bas been structured to insure that the financial burden or
detriment that would otherwise occur through the implementation of the Plan is adequately
mitigated through the financial provisions and formulms of the Agreemenr~
The primary provisions of the Agreement are as follows;
I)
The Agency will set up a Special Fund to be administered by the Agency or a third
party non-profit corporation, in the sole discretion of the District, to be specifically
utilized to finance Eligible Capital Improvements as set forth in the Agreement.
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93-007
2)
5)
Beginning in the Fiscal Year in which the Agency receives a cumulative amount of tax
increment of 5109,875,00, the Agency will pay into the Special Fund an amount equal
to the greater of a) an amount equal to 3.6% of the gross Tax Increment (40% of the
District's Share of Tax Increment) received by the Agency in that Fiscal Year~, or b)
an amount equal to a certain portion of the District Share of the Tax Increment
received by the Agency in that Fiscal Year, which said percentage shall be equal to the
percentage of the Santa Aha Unified School District Share which is paid to the Santa
Aha Unified School District during such Fiscal Year pursuant to agreement between
the Agency and the Santa Aha Unified School District.
The terms and conditions of the Agreement shall be no less favorable to the District
than those contained in any agreement between the Agency and the Santa Aha
Unified District.
The Agency commits to provide 51,000,000 to the development of a fire training
facility at Centennial Parle
The Agency will make a good faith effort to provide 58,000,000 towards the cost of
site acquisition for a new education facility and parking facilities at the District's Santa
Ana Campus.
Assuming conservative proiections of growth in the project area and a conservative
inflation rate, it is estimated that the financial arrangement represents a present value
to the District of approximately 510,000,000-511,000,000 or a real dollar value over
40 years of approximately 531,500,000-534,400,000, plus the 59,000,000 value of
specific facilities , if the Agency's good faith commitment is attained.
Although there are conditions, requirements, and limitations which must be applied
prior to the District's use of the funds to be provided by the Agency; these
conditions, requirements, or limitations either a) are required by the California
Community Redevelopment Law or other applicable State and Federal statutes; or
b) provide appropriate checks and balances between the Agency and District to
insure that the terms of the Agreement are fulfilled by each party.
The agreement provides that the obligation of the Agency to the District is deemed
to be a first pledge of Tax Increment and shall not be subordinated to any other
pledge of Tax Increment.
The Agreement provides that the District shall dismiss its pending litigation, shall not
pursue additional litigation with regard to the validity or adequacy of the Plan, the
Amendment to the Plan, any findings or determinations relating to the process of
approval, and any documents relating thereto.
A-2
RESOLUTION 93-007
The Agreement provides addition terms and conditions to insure valid and legal
implementation of the relationship between the District and the Agency.
These provisions provide a cash flow of revenue to the District which will enable the
expenditure of estimated t~xes to be generally used as follows in order to attain the intent and
purpose of the Agreement:
COST CATEGORY
ESTIMATED
TOTAL
I~XPENDITURES
ESTIMATED
ANNUAL AVG.
EXPENDITURES
40 YEAR
LAND ACQUISITION/LEASE EXPENDITURES 10.00%
NEW CONSTRUCTION EXPENDITURES 50.00%
RECONSTRUCTION EXPENDITURES 10.00%
SUB*TOTAL ESTIMATE (+\-)
$ 3,440,000 $ 86,000
$17,200,000 $ 430,000
~__3.440,00_g0 ~ 86,000
SUB-TOTAL ESTIMATE(+\-)
70.00% $24,080,000 $ 602,000
DIRECT/INDIRECT PRE- AND
POST-DEVELOPMENT EXPENDITURES 10.50%
ADMINISTRATION/MANAGEMENT OF
AUTHORIZED PROJECTS 8.70%
INDIRECT EXPENDITURES OF
AUTHORIZED PROJECTS 4.35%
SPECIAL FUND ADMINtSTRATtON
EXPENDITURES 6.45%
30,00%
3,612,000 $ 90,300
2.991,304 $ 74,783
1,495,652 $ 37,391
2,221,043 $ 55,526
$10,319,999 $ 258,000
TOTAL ESTIMATED
EXPENDITURES(+\-)
100.00% ,,.,.,.,.,.,.,.,.,.~ 5 , 3 9 9 . 9 9 9 ~
The distribution and expenditure of taxes pursuant to the various categories as set forth
above may be modified during the term of the Agreement, pursuant to the terms and
conditions of the Agreement and based upon the conditions that may exist in the
community and the District at the time of said expenditures, and the need to incur such
expenditures. The above is not intended to limit the distribution and allocation of
revenues.
Although the Amended Redevelopment Plan provides a term of 40 years following its
adoption, the distribution and allocation of tax increment to the District does not begin
until the Agency receives $109,875,000 in tax increment from the Project Area. It is
projected that the Agency will reach this limit in Fiscal Year 2003-2004 or approximately
twelve (12) years following the adoption of the Amended Plan which occurred in Fiscal
Year 1992~1993. The Agency may reach this limit earlier or later depending on the rate
of growth in assessed valuation in the Project Area. In addition, if the Agency incurs debt
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R~:SOlJL/'i'i ON 93-007
prior to the expiration of the 40-year term of the Amended Redevelopment Plan that is
payable from tax increment revenues allocated to the Agency after the term of the
Amended Plan expires, the amounts payable to the District will continue beyond the 40-
year term.
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RESOLUTION 93-007
045
Section B
BUILDINGS, FACILITIES, STRUCTURES OR OTHER IMPROVEMENTS ARE OF
BENEFIT TO THE PROJECT AREA OR THE IMMEDIATE NEIGHBORHOOD IN
WHICH THE PROJECT IS LOCATED [Section 33445(1) of the Health and Safety
Code]
The City is presently served by a general educational facility in the City located at 1530
West 17th Street, Santa Ana, California, more commonly known as the Rancho Santiago
Community College - Santa Aha Campus.
The District's facilities are offered to all residents, employees, and employers within the
City and the Project Area, without distinction for jurisdictional area or attendance areas.
The other District facilities which are outside the territory of the City are also available to
residents, employees and employers who are within the jurisdiction of the District,
The Agreement sets forth the Eligible Capital Improvements for which the revenues to be
paid by the Agency may be used. The projects which are being approved at this time
include the following improvements and/or facilities, in accordance with the terms and
conditions of the Agreement:
1)
All capital outlay expenditures required for the establishment and operation of the
following Eligible Capital Improvements, including: a) sites and improvements to
sites, including acquisition of land, improvement of new and ol~ sites and adjacent
ways, and acquisition of physical property of a permanent nature attached to land;
b) buildings, including the construction or purchase cost of new buildings and
additions, the razing of existing obsolete or old buildings to clear sites for new
buildings, building fixtures and service systems, and any other expenditure directly
related to the construction or acquisition of buildings; c) improvement of buildings,
including alterations, remodeling, renovations, and replacement of buildings in
whole or in part; d) building fixtures, including attachments to buildings that are not
subject to transfer or removal, function as integral parts of the building, and have
fairly long and useful lives; e) service systems including any parts of a building that
are intended to serve a single function throughout the building, are usually
included as a part of the original construction or subsequently added in whole or
in part, are built as integral parts of the buildings, and are expected to have a long
and useful life; and f) the purchase of initial or additional equipment only to the
extent necessary to accommodate new or expanded facilities, including movable
personal property of a relatively permanent nature and/or significant value:
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2)
Estimated
Total Cost
(Million)
SANTA ANA CAMPUS
1) Multi-Cultural Education Center/Language Studies/Flexible
Muiti-Purpose Rooms $7.0
2) Allied Health Occupations Center $15.0
3) Land Acquisition, Additional Parking and Reconfiguration of 17th Street
Entrance to Reduce Safety Hazard, Transportation Hub $25.0
4) Capital Equipment for Business/High Tech Center $2.0
5) Johnson Center Patios enclosure (bottom floor, east patio and upper floor,
west patio) for Additional Student Services Facilities $1.5
6) Renovation of Existing College Buildings (Russell Hall, Child Development
Center, Hammond Hall Technical Building, Administration, Library,
Humanities, Music, Phillips Hall, and Dunlap Hall) $35.0
7) Support Services Building Located Adjacent to the Santa Ana Campus $~.0
8) Athletic Facilities Upgrade $8.0
a) Remodel Gym
b) New Locker Room Facilities
c) Lighting - Tennis Courts, Softball Field
CENTENNIAL EDUCATION CENTER
1) Joint Fire/Police Training Facility $18.0
2) Additional Educational Classroom Space $8.0
3) library and Student Services Building $20.0
4) Additional ParkJng $2.0
5) Joint City and District Teleconferencing Center $2.0
TOTAL $149.5
Any and all direct or indirect pre- or post-development expenditures of the
District, which include planning, engineering, architectural, contract or project
management administration, inspection and tests, plan check fees, State and
local fees, appraisals, and bid documentation and processing, so long as such
costs are specifically and directly related to the capital outlay expenditures and
deferred maintenance authorized by and contemplated under the Agreement.
B-2
RESOLUTIOn< 93-007
047
Note:
The inclusion of this project list in the Capital Facilities Agreement
between the District and the Agency is not an obligation by the District,
the Agency, or the City to pursue, undertake and/or complete any of the
projects set forth herein, but is intended to authorize the expenditure of
revenues in compliance with Section 33445 and 33679 of the Health and
Safety Code should the District choose to proceed with any one or more
of the Eligible Capital Improvements.
The Eligible Capital improvements proposed at the District's Santa Aha Campus are not
located within the Project Area. However, several of the Eligible Capital Improvements
are proposed to be located within the Centennial Education Center which is located within
the Project Area. It is beneficial for the Project Area to be serviced by Eligible Capital
Improvements which are within the City. Without such facilities in place, the residents
and/or employees of the Project Area would not have convenient access to and be able
to easily avail themselves of the educational opportunities which are offered by law to
the people of the State of California in general, and to the community in particular. To
the degree that the District's capital facilities deteriorate due to inadequate funding, their
usability and efficiency will diminish, thereby adversely affecting the public's access and
use of these capital facilities.
In addition, as the City grows in population and employment, directly and indirectly as a
result of the economic, social, and physical advantages and benefits of the use of
redevelopment in the City, in general, and the Project Area, in particular, the District's
existing capital facilities will become overcrowded and over-utilized, thereby deteriorating
the educational environment. This will require acquisition or lease of new sites to
accommodate the overflow of students, and/or the expansion, alteration, remodeling,
renovation, and replacement of buildings, building fixtures, equipment, furniture, and
services systems at existing sites. Without actions by the Agency or the District to fund
the Eligible Capital Improvements, the District's modifications of present and future
operational and administrative programs and activities may adversely affect the residents
and employees of the Project Area and the community, Such operational and
administrative programs which the District has and would continue to implement include,
but are not limited to: a) modifying the curriculum and schedule of class opportunities;
b) modifying class schedules and the availability of classes; c) increasing admission fees
for classes offered; d) increasing classroom sizes beyond that which would provide for
a desirable educational environment; e) meeting classroom capacity demands through
the placement of emergency and temporary trailer or portable classrooms; and f) closure
of facilities due to inadequate funding.
The District also provides non-credit curricula to enhance the skills and capabilities of the
adult population of the community and the Project Area. Employees of the Project Area
can avail themselves of these services and expand employment skills, as well as basic
B-3
048
skills by attending courses such as English-as-a-Second-Language. This educational
benefit insures that employers of the Project Area have access to an educated labor force
within the community, whether it be adults or employment-age students of the District.
The District's capital facilities are all public access facilities, and therefore provide a
substantial portion of the public areas of the community, which are available to the
residents and employees af the Project Area and the adjacent neighborhoods. These
areas are an integral portion of the community's public service programs. The
deterioration and/or the over-utilization of the District's capital facilities will have an
adverse affect on the District's ability to meet its requirements of providing adequate and
acceptable facilities for the community, in general, and the Project Area, in particular.
The vitality of the Project Area depends not only on the removal of blighted physical,
social and economic conditions, but also on the adequacy of public facilities within the
Project Area and within proximity to the Project Area which provide the educational and
public facilities and services required to meet the demands and needs of resiCents,
employees, and employers within the Project Area.
As the Project Area is revitalized, employment opportunities are created, and residential
development is made available to prospective tenants, all directly or indirectly requiring
adequate educational capital facilities in the community. However, as such facilities
become burdened with the impact of such usage, the District will need to transition such
use to other capital facilities in the District. Such transition will have impacts on other
District facilities which are not in proximity of the Project Area. Therefore, there is a direct
correlation between all capital facilities which the District utilizes and its responsibility to
provide educational services.
The public access to the District's capital facilities within close proximity to the Project
Area, or in other areas of the community has direct and indirect benefit to the Project
Area, by the mere fact that all District facilities are equally available to all employees and
residents of the community and the Project Area, and that the utilization of such fadlities
are not dictated by location, but rather the overcrowded or under~utilized condition of said
capital facilities, and the availability of services offered at any one site.
Of even more importance, the Agreement provides a vehicle for the District to pursue the
necessary facilities required for its Fire and Police Training Programs, which will enhance
the accessibility of these educational curriculums to the residents and employees of the
Project Area and the community. Additionally, the visibility of the Fire and Police Training
Facility in the community will enhance the City's efforts towards crime and fire prevention,
and will provide a local facility where the City's police and fire officers can enhance their
skills and capabilities. This is all consistent with the City's redevelopment program intent.
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RESOLUTION 93-007
THEREIS NO OTHER REASONABLE MEANS OF FINANCING SUCH BUILDINGS,
FACILITIES, STRUCTURES, OR OTHER IMPROVEMENTS AVAILABLE TO THE
COMMUNITY [Section 33445(2) of the Health and Safety Code]
The District's services and the Eligible Capital Improvements are intended to be financed through
various statutes of the California Education Code, and the various programs of the State of
California. Through State statutes, the property taxes generated within the boundaries of the
District are allocated to the District based upon a formula ("revenue limit'S) which insures
equalization of revenues by full time equivalent students, to all community colleges districts
throughout the State. Should local property taxes not be adequate to fund the revenue limit,
the State supplements the property taxes with other designated State general fund revenues, so
as to ensure that the revenue limit is annually attained. The equalized revenue limit per student
increases or decreases depending on the State's and Chancellor's ability to supplement property
tax revenues based upon the amount of revenue the Legislature allocates to the State's
community college system. In recent years the revenue limit has remained stagnant or has
decreased due to the State's financial crises.
The District's FY 1992~1993 revenue limit per full-dine equivalent student per year for
non-credit students is $1,550.00 (projected) and for credit students is $3,078.53, or an estimated
total revenue of $52,795,464 (projected). This is comparable to the FY i 991 -1992 budget of the
District, even though student enrollment and the cost of providing services have increased. This
revenue allocation is expended by the District on operations and administration in order to
provide the general educational programs of the DistricL
Over the last several years, the ability of the State to maintain the level of revenue limit funding
necessary to finance the District's operations and administration has been diminishing. The
State's present budget crisis is reflective of its inability to attain the level of funding which school
districts have had in the pasL This financial crisis may be leading to a restructuring of the endre
State education financing programs, where community colleges and their local communities will
have greater responsibilities and obligations for the financial needs of their iurisdictional areas.
The District conducts business through various budgetary funds of the District, Many of these
funds are "use-restricted" as a result of State statutes, regulations, or requirements. Similarly,
many of these funds are constrained due to contract obligations which the District maintains in
order to operate. These contract obligations include, for example, agreements with the
employee associations of the District, which establish certain standards of District operation and
employment benefits. These contract obligations are significant in that they affect the flexibility
of the budgetary process of the District to reallocate revenue resources as necessary to capital
facilities and deferred maintenance.
The unrestricted funding is maintained in the General Fund of the District Portions of the
revenue limit proceeds are within this fund. The District however, has had to conserve its
expenditures in this fund over the past several years, in order to maintain a balanced budget.
RESOLUTION 93-007
Conservation of revenues by a community colleges usually suggests cutbacks in, or deferral of,
capital facility and deferred maintenance expenditures. The District has experienced these
conditions in recent years.
Although revenue limit funding can be used for deferred maintenance and capital facilities, the
financial requirements of the operations and administration of the District does not result in a
surplus of revenues that can be applied to such deferred maintenance or capital facilities
requirements of the District.
As a supplement to the revenue limit proceeds, the Community College Construction Act of
1980 and the Community College Revenue Bond Act of 1961, together with other provisions
of the Education Code, provide a mechanism for the distribution of "available" and designated
State revenues for new construction, reconstruction, modernization, land acquisition, emergency
facilities, size related facilities, and reserves and contingencies required by community college
districts throughout the State. Such revenue sources are generally made available as a result of
State-wide bond election authorizations and financing vehicles.
In April 1992, Proposition 153 was approved, authorizing the allocation of :$900 million in bonds
for college systems of the State to finance capital facility improvements. Of the $900 million,
:$300 million was allocated to the community college system; however, much of the :$300 million
is already committed and/or expended for community college capital facilities in the State,
There are no additional community college bond propositions on the State ballot for June 1993.
Even with the passage of Proposition 153, there is still inadequate funding resources throughout
the State to meet the capital facility needs Statewide.
It is unlikely that the State Legislature will initiate propositions for Statewide elections or
legislative statutes in the future that will be able to meet the capital facility demands of the State,
nor is there a realistic expectation that the electorate of the State will approve such large bond
obligation authorizations with the two-thirds vote required by Proposition 13. More likely, the
State will continue to redirect this financial obligation to districts and local communities.
Unlike K-12 school districts, who can partly financed capital facilities through Development Fees
as authorized by Section 53080 of the Health and Safety Code, community college districts do
not have a similar legislative authorization.
Development Fee authorization for K-12 school districts was approved by the State legislature
to provide a vehicle whereby private development activity pays a fair share of the cost of capital
facilities required as a result of the private development activity, Further, it was implemented
as a vehicle to complement available State capital facility revenues. These fees are generally
applied to the new construction of residential and non-residential properties. Community
college districts do not have development fee authorization, and therefore cannot obtain these
revenue sources.
Local General Obligation Bonds are a method of raising financial resources at the local level.
However, General Obligation Bond authorizations have more often been defeated than
approved, largely due to the Proposition 13 two-thirds vote requiremen~
The ability to obtain the approval of the local electorate of a General Obligation Bond is difficult,
controversial, and sensitive, and has become a vehicle of "last resort" toward attaining capital
facilities. In addition, there appears to be a general consensus among the electorate that new
private development should bear the burden of financial mitigation of the impact private
development creates on education, rather than to impose such a financial burden on the general
community. This general attitude constrains the ability of the District to have successful General
Obligation Bond elections.
i'dello-Roos Community Facilities District ("CFD") financing can also be used to finance facilities.
However, such financing vehicles require the support of property owners, which is extremely
difficult to attain in an urbanized area. In addition, CFDs require a ratio of assessed valuation
to bond financing comparable to 3:1. In the community, it would be unlikely that the District
could attain tile required support for a CFD, or to attain the required ratios to fully cover the
financial requirements caused by the redevelopment program of the City.
An alternative to General Obligation Bond financing is the utilization of a Parcel Tax or property
tax override. These have the same two-thirds voting requirements as General Obligation Bond
authority, but have greater flexibility of use by the District for non-capital facility requirements.
As with the General Obligation Bond authorizations, a successful Parcel Tax election would
appear to be difficult to attain in the community.
User Fees in the form of higher class admission fees and higher fees for the use of the District's
facilities can be imposed by tile District as a supplemental source to od~er revenues. However,
the magnitude of these fees required to meet the capital facility requirements of the District
would result in User fees having to be so high, that it could eliminate access to the District's
facilities by certain Iow- and mid- socio-economic segments of the community, and the Project
Area. In addition, higi~er contract fees to the business community for use of the facilities, and
for educational services, would detract from the relationship that the District has and needs to
continue to maintain with the business community, so as to improve the educational level and
employment skills of the community's and Proiect Area's labor force. These educational
opportunities are advantages to insuring a revitalized ?roiect Are~
The California Community Redevelopment Law is based upon a basic assumption that the use
of the statutes are necessary to remedy physical, social, and economic liabilities in the community
which cannot be expected to be reversed or alleviated by private enterprise acting alone. The
financial burden or detriment caused by the redevelopment program of the City upon the
District creates another layer of economic liability on the community, and as such, without
adequate mitigation will create future adverse physical and social conditions in the Proiect Area
and the community. Although there are a variety of financial vehicles which are available to the
District to alleviate these conditions, there appears to be a variety of constraints with each such
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RESOLUTION 93-007
vehicle, whereby it can be found that these are not reasonable means available to the community
for the financing of the buildings, facilities, structures, or other improvements ~s set forth the
Acreemen~.
RESOLUTION 93-007
.Section C
THE REDEVELOPMENT PURPOSE FOR V~/HICH SUCH TAXES ARE BEING USED TO PAY
FOR THE LAND AND CONSTRUCTION OF SUCH PUBLICLY OWNED BUILDINGS
[Section 33679(c) of the Health and Safety Code]
Section 33353.5 (c) of the Health and Safety Code provides that the Fiscal Review Committee
to which the District was a member, may recommend actions to the Agency which would
alleviate or eliminate the financial burden or detriment caused by the Redevelopment Plan, and
said recommended actions may include modifying the kind or number of specific proiects
proposed by the Agency, or identifying specific actions or proiects to be undertaken by the
Agency which would reduce or eliminate the detrimental fiscal effects on the District.
Section 33012 of the Health and Safety Code states:
33012.
(a) "Financial burden or detriment" means either of the following:.
(I) A net increase in the quality or quantity of a service of the affected taxing
entity caused by the redevelopment proiect.
(2) A loss of property tax revenues by the affected taxing entity produced by
a change of ownership or new construction which would have been received,
or was reasonably expected to have been received, by the taxing entity if the
redevelopment project was not established.
(b) The division of taxes pursuant to Section 33670, by itself will not
constkute a financial burden or detriment.
The District did, through the Fiscal Review Committee process, make certain recommendations
to the Agency pursuant to Section 333S3.5 of the Health and Safety Code, which have in part
been mutually agreed upon by the Agency and the District, and which have, in part, been
incorporated into the Agreement.
Pursuant to Section 33020 of the Health and Safety Code the purpose of redevelopment is to
plan, develop, replan, redesign, clear, reconstruct, or rehabilitate, or any combination thereof,
all or any part of the survey area, and to provide residential, commercial, industrial, public, or
other structures or spaces as may be appropriate or necessary in the interest of the general
welfare, including recreational and other facilities incidental or appurtenant to them. The goal
of the redevelopment process and that of the Agency is to remedy blighting conditions in the
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community which constitute either physical, social or economic liabilities, requiring
redevelopment in the interest of the health, safety and general welfare of the people of the
community.
Through the redevelopment of the Project Area and the allocation of taxes to the District, and
for the purposes set forth in the Agreement, benefits will accrue to all of the inhabitants and
property owners of the community, in that the public access to the District's capital facilities
provided the community will not be adversely affected by the direct or indirect activities of the
redevelopment program. The Agreement provides for protection of these facilities, and
promotes the sound development and redevelopment of blighted areas and the general welfare
of the inhabitants of the community, by providing for the remedy of such injurious blighting
conditions through the employment of all appropriate means of the Agency, while alleviating the
potentially adverse impacts on the District
Section 33445 of the Health and Safety Code provides that the Agency may, with the consent
of the City Council, pay ail or part of the value of land for and the cost of the installation and
construction of any building, facility, structure, or other improvement which is publicly owned,
either within or without the Project Area, if the City Council determines a) that the buildings,
facilities, structures, or other improvements are of benefit to the Project Area or the immediate
neighborhood in which the project is located, regardless of whether the improvement is within
another project area; and b) that no other reasonable means of financing such buildings, facilities,
structures or other improvements are available to the community.
As stated herein, the Eligible Capital Improvements as provided for in the Agreement are of
benefit to the Project Area. In addition, although there have been identified several financial
vehicles which would have the potential of financing the Eligible Capital Improvements, there
exist significant constraints and/or restrictions which make these vehicles an infeasible and/or
insufficient means for the financing of these buildings, facilities, structures or other improvements
by the community.
The Agreement provides a viable approach for the District to continue to operate the District's
facilities in the City, and to establish new general educatJon community college facilities in the
community, under specific conditions of the Agreement. Without the Agreement, the District
would be unable to provide such facilities, and as such the intent of the City's redevelopment
program could be adversely affected.
The Agreement conforms with the intent and purpose of the Redevelopment Plan and the
purpose, the declaration of State policy, and the requirements of the California Community
Redevelopment Law, as has been substantiated herein.
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