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CITY COUNCIL AGENDA ITEM NO. 17

Meeting Date: November 28, 2000

Subject/Title: Sunset Industrial Complex

Submitted by: Engineering: J. Stevenson Administration: H. Sword 

Approved by: Jon Elam, City Manager 

RECOMMENDATION

Approval of a Resolution adding the Sunset Industrial Complex to the 2000/05 Capital Improvement Program, directing the City Engineer to hire a consultant to design the necessary plans and maps to facilitate the industrial complex construction, directing the City Engineer to remove portions of the apple orchard with the exception of a screening buffer of trees, directing the City Engineer to bid the project and return to Council for award of the construction contract at the appropriate time, directing the Economic Development Director to initiate an advertising campaign, and if necessary hire a consultant to assist in that effort; and directing the Finance Director to fund these functions to the maximum extent allowable by law through the use of Redevelopment funds.
 
PREVIOUS ACTION

On January 12, 1999 the City Council approved the purchase of the 40 acre parcel of land north of Sunset Road, east of Tresch Road, west of Sunset Park, and south of the Wastewater Treatment Plant. The intent of this purchase was for a combination of an industrial complex and an expansion of Sunset Park. 

BACKGROUND

As Brentwood develops, there is an increasing need for industrial or light industrial land for development. To date there has been very limited developer activity in this segment due to low profit margins. There are, however, several existing businesses currently located on Brentwood Boulevard that desire to expand or relocate and there is no existing location available on the open market in Brentwood. 

While the proposed industrial complex property is just outside the redevelopment area, the areas receiving benefit from this development will be inside the redevelopment area. Therefore, staff believes and has been informed by redevelopment experts that this is a legitimate expense for Redevelopment funding.

The Wastewater Treatment Plant Expansion immediately adjacent to the north, must construct a new infiltration pond to see the plant through the next two winters. Part of this work will necessitate the removal of portions of the apple orchard that currently exists on the site. The trees will be removed through the use of Wastewater Treatment Plant funding rather than Industrial Complex funding. 
 
There is a great deal of work to do on this project, and if the Council wants to proceed with it, staff recommends approval of the attached Resolution. The Council should not expect a profit from this venture and sale of industrial parcels, as the attached Proforma indicates it is a break-even venture. The advantage to the City in proceeding is in the increased annual tax base, not the sale of parcels.

Howard Sword, Economic Development Manager, made a presentation to the Parks and Recreation Commission on August 24, 2000, to discuss the draft design of the area. The main emphasis of the discussion was related to the future expansion possibilities for Sunset Park. The Commission also reviewed a later draft at their October 26, 2000, Commission meeting and is in support of the final footprint design. Once City Council approves the final layout, the commission will move forward to complete the specific design of the park. 
 
Attachments:Resolution
Proforma
CIP Sheet
Site Map


 RESOLUTION NO.

 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADDING THE SUNSET INDUSTRIAL COMPLEX TO THE 2000/05 CAPITAL IMPROVEMENT PROGRAM, DIRECTING THE CITY ENGINEER TO HIRE A CONSULTANT TO DESIGN THE NECESSARY PLANS AND MAPS TO FACILITATE THE INDUSTRIAL COMPLEX CONSTRUCTION, DIRECTING THE CITY ENGINEER TO REMOVE THE MAJORITY OF THE APPLE ORCHARD WITH THE EXCEPTION OF A SCREENING BUFFER OF TREES, DIRECTING THE CITY ENGINEER TO ADVERTISE AND BID THE PROJECT AND RETURN TO COUNCIL FOR AWARD OF THE CONSTRUCTION CONTRACT AT THE APPROPRIATE TIME, DIRECTING THE ECONOMIC DEVELOPMENT DIRECTOR TO INITIATE AN ADVERTISING CAMPAIGN AND IF NECESSARY HIRE A CONSULTANT TO ASSIST IN THAT EFFORT, AND DIRECTING THE FINANCE DIRECTOR TO FUND THESE FUNCTIONS TO THE MAXIMUM EXTENT ALLOWABLE BY LAW THROUGH THE USE OF REDEVELOPMENT FUNDS. 
 
WHEREAS, on January 12, 1999 the City Council approved the purchase of approximately 40 acres adjacent to Sunset Park for an expansion of the Park and the development of an industrial complex; and 

WHEREAS, the development of this industrial complex will facilitate the relocation of light industrial-type users from the Brentwood Boulevard area of the Redevelopment Area; and 

WHEREAS, this relocation of industrial users will help relieve blight within the Redevelopment Area; and 

WHEREAS, the City Council desires to use City Redevelopment Funds to reduce blight within the Redevelopment Area; and 

WHEREAS, the Brentwood Wastewater Treatment Plant Expansion Project can assist in this effort by clearing the existing orchard, thereby offering financial assistance to the project and the Redevelopment Agency; and 

WHEREAS, the development of the Sunset Industrial Complex will provide additional tax revenues to the City; and 

WHEREAS, the development of the Sunset Industrial Complex may provide an opportunity to expand the City’s Corporation Yard facilities in conjunction with moving the County’s Corporation Yard; and 

WHEREAS, Brentwood’s General Plan, Economic Development Chapter, contains Policy 1.1 titled Business Growth which reads as follows: “Encourage strategies and activities which promote growth and diversity of businesses within the Brentwood community;” and 

WHEREAS, Brentwood’s General Plan, Economic Development Chapter, contains Policy 1.1.2 titled Promotion, which reads as follows: “Establish and maintain promotional efforts, direct marketing and informational brochures;” and 

WHEREAS, Brentwood’s General Plan, Economic Development Chapter, contains Policy 2.1.2 titled Incentives, which reads as follows: “Identify tax incentives, bonds, assistance programs and other benefits to attract a desirable, diverse range of companies to the City of Brentwood;” and 

WHEREAS, Brentwood’s General Plan, Economic Development Chapter, contains Policy 3.1 titled Developable Land, which reads as follows: “Ensure that an adequate inventory of vacant industrial/commercial land and parcel sizes is designated and maintained for various employment generating uses.” 

WHEREAS, pursuant to this resolution, the City Council of the City of Brentwood appropriates funds in the amount of $640,000 and authorizes the payment of the funds to the Redevelopment Project Area, Capital Project Fund as a loan for the purpose of planning, design, project administration and related expenditures for the Sunset Industrial Complex from the Water Facilities Fund on the terms and conditions specified herein. 

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood that the Sunset industrial Complex is added to the 2000/05 Capital Improvement Program. 

BE IT FURTHER RESOLVED that the sum of $640,000 is hereby appropriated and loaned to the Redevelopment Agency, Capital Project Fund. 

BE IT FURTHER RESOLVED that such appropriation is hereby authorized to be paid to the Agency as a loan to be repaid from funds of the Agency with interest from the date funds are actually transferred to the Redevelopment Agency by the City, to the date of repayment by the Agency (calculated on a 360 day year basis) at the rate of six percent (6%). The debt created hereby shall be subordinated to any other indebtedness of the Agency, presently existing or hereafter incurred, for the purpose of fulfilling the redevelopment activities of the Agency.

BE IT FURTHER RESOLVED that this loan to the Redevelopment Agency shall be repaid from Agency Tax Increment revenues, no later than June 30, 2003.

BE IT FURTHER RESOLVED that the City Engineer is directed to hire a consulting engineer to design the necessary plans and maps to facilitate the Sunset Industrial Complex construction.

BE IT FURTHER RESOLVED that the City Engineer is directed to have the orchard trees removed from the site with the exception of a screening buffer.

BE IT FURTHER RESOLVED that the City Engineer is directed to advertise the project for bid and return to Council for award of the construction contract.

BE IT FURTHER RESOLVED that the Economic Development Director is directed to initiate an advertising campaign and if necessary hire a consultant to assist in that effort. 

BE IT FURTHER RESOLVED that the Finance Director is directed to fund the above described functions to the maximum extent allowable by law through the Redevelopment Agency and Redevelopment Funds.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 28th day of November 2000 by the following vote: 

AYES: CouncilmembersNOES: 
ABSENT: 

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