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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 18

Meeting Date: June 14, 2005

Subject/Title: Public Hearing and Resolution making required findings required by Health & Safety Code Section 33445 relating to the Redevelopment Agency of the City of Brentwood funding a portion of the construction costs of a Police Facility (CIP Project No. 337-3142).

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Hold public hearing and approve resolution making required findings required by Health & Safety Code Section 33445 relating to the Redevelopment Agency of the City of Brentwood funding a portion of the construction costs of a Police Facility (CIP Project No. 337-3142).

PREVIOUS ACTION
On September 13, 2003, the City Council of the City of Brentwood approved the purchase of property and buildings at 9100 Brentwood Boulevard with the intention of demolishing existing and reconstructing all new tenant improvements to accommodate a 45,000 square foot new Police Facility.

On July 13, September 14, and November 9, 2004, the City Council approved contract documents and awarded construction contracts for various retrofitting and construction phases for the new Police Facility.

On May 24, 2005, the City Council approved and adopted the 2005/2010 Capital Improvement Program for the City of Brentwood, of which the New Police Facility, CIP Project No. 337-3142 is a part.

BACKGROUND
The Brentwood Redevelopment Agency, with the consent of the City Council, is allowed to pay all or a part of the cost of installation and construction of any publicly-owned building provided that certain determinations are made pursuant to Section 33445 of the Community Redevelopment Law. The City Council and Redevelopment Agency must adopt resolutions and make the appropriate findings in order to authorize the use of redevelopment funds. The findings must demonstrate how the project will benefit the project area and declare that there are no other reasonable means of financing the project. By adopting these resolutions, the City and Agency also determine that the project will assist in eliminating blighted conditions within the Merged Redevelopment Project Areas, and that the project conforms to the Redevelopment Plan and the Implementation Plan. The attached Summary Report has been prepared pursuant to Health & Safety Codes 33445 and 33679 for a proposed $2.0M contribution by the Agency to the Police Facility project.

The total project costs for the Police Facility (CIP Project No. 337-3142) is $16,318,500. After using Community Facility Fees collected from residential and commercial development projects throughout the City in the amount of $8,318,499 and voter-approved general obligation bond proceeds in the amount of $6.0M, there is a “gap” of $2.0M. The Brentwood Redevelopment Agency proposes to close the gap by contributing $2.0M to the Police Facility project from its 2001 Tax Allocation Bond proceeds.

There are no other reasonable means of financing the Project’s $2.0M gap available to the City. The City’s Community Facility Fee Program is fully committed to other equally important community facilities. The General Obligation Bond of $6.0M has been fully allocated to this project. Given the current financial constraints on State and Federal budgets, there is little grant funding available form these sources. The 2005/2010 Capital Improvement Program has an unfunded amount of $68M. Given the stresses on the existing City budget, an additional debt service obligation would be difficult. The City is looking to its Redevelopment Agency to fund a portion of the Police Facility.

This is an allowable use of the Agency’s tax increment because this facility is a benefit to the Downtown Redevelopment Project Area’s businesses, residents and visitors, it eliminates blight, and it conforms to the Redevelopment Plan and Implementation Plan.

A companion staff report and resolution is on tonight’s agenda for consideration and action by the Brentwood Redevelopment Agency.

FISCAL IMPACT
There is no financial impact on the City’s General Fund to fill the gap. The Redevelopment Agency shall contribute $2.0M towards the total cost of the Police Facility project using its 2001 Tax Allocation Bond proceeds.

Attachments:
Resolution
Summary Report

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD MAKING REQUIRED FINDINGS REQUIRED BY HEALTH AND SAFETY CODE SECTION 33445 RELATING TO THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD FUNDING A PORTION OF THE CONSTRUCTION COSTS OF A POLICE FACILITY

WHEREAS, on September 13, 2003, the City Council of the City of Brentwood (“City Council”) approved the purchase of property and buildings at 9100 Brentwood Boulevard with the intention of demolishing existing and reconstructing all new tenant improvements at 9100 Brentwood Boulevard to accommodate a 45,000 square foot Police Facility; and

WHEREAS, on July 13, September 14, and November 9, 2004, the City Council approved contract documents and awarded construction contracts for various retrofitting and construction phases for the Police Facility; and

WHEREAS, on May 24, 2005, the City Council approved and adopted the 2005/2010 Capital Improvement Program for the City of Brentwood, of which the New Police Facility, CIP Project No. 337-3142 (“Project”), is a part; and

WHEREAS, the total costs for the Project are estimated at $16,318,500, and using Community Facility Fees in the amount of $8,318,500 and voter-approved general obligation bond proceeds in the amount of $6.0M, there remains a “gap” of $2.0M for the Project; and

WHEREAS, the Redevelopment Agency of the City of Brentwood (“Agency”) proposes to fund the gap by contributing $2.0M to the Project from its 2001 Tax Allocation Bond proceeds; and

WHEREAS, pursuant to California Redevelopment Law’s Health and Safety Code Section 33445, the Agency is authorized, with the consent of the City Council, to pay part or all of the cost of construction of buildings and facilities that are publicly owned upon making the findings pursuant to Health and Safety Code Section 33445; and
WHEREAS, a Summary Report has been prepared pursuant to the provisions of the Health and Safety Code 33679 and is attached hereto and incorporated herein as a part of this resolution; and

WHEREAS, notice of the public hearing and the availability of the Summary Report was published in the Contra Costa Times, a newspaper of general circulation in the City of Brentwood, as required by Section 33679 of the Community Redevelopment Law.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood as follows:

1. The City Council hereby finds and determines:

a. The Project will be of benefit to the Merged Redevelopment Project Area (“Project Area”) as described in the attached Summary Report. This finding is based on providing future development opportunities in the Downtown Core, acting as a catalyst to stimulate private investment, alleviating the shortage of parking within the Downtown Core, and re-utilizing and rehabilitating a vacant building in the Project Area.

b. There are no other reasonable means of financing the Project, as described in the attached Summary Report. This finding is based on the lack of sufficient funds in the capital improvement budget of the City to fund the Project together with other urgently needed public improvements and facilities, and the infeasibility of financing the Project through an assessment district, grants, debt service or other conventional method of financing public facilities.

c. The payment of funds for the Project will assist in the elimination of one or more blighting conditions inside the Project Area, as described in the attached Summary Report. This finding is based upon the removal of an obsolete and inadequate existing building; the potential to assemble parcels suitable for modern, integrated development; provision of improved public safety; provision of convenient parking in the Project Area; and the re-use of a vacant, underutilized building.

d. The Project is consistent with the Brentwood “Downtown” Redevelopment Plan (“Plan”) adopted in 1982 and the Agency’s Implementation Plan adopted in 2005. This finding is based on the following facts:

1. The Redevelopment Plan identifies the following authority:

“Section 307 Cooperation with Public Bodies: . . . The Agency is authorized to financially (and otherwise) assist any public entity in the cost of public land, buildings facilities, structures or other improvements which land, buildings, facilities structures or other improvements are or would be of benefit to the Project Area.”

“Section 318 Public Improvements: The Agency is authorized to install and construct, or to cause to be installed and constructed, the public improvements and public utilities (within or without the Project Area) necessary to carry out this Plan. Such public improvements and public utilities include, but are not limited to, the following: …. (5) police facilities . . .”

2. The Implementation Plan identifies as objectives for the five-year period for Fiscal Years 2004/2009 the following:

“Facilitate the provision of community facilities, as allowed by Community Redevelopment Law, through the revitalization, restoration and preservation of existing facilities and construction of new facilities that will encourage and strengthen the economic, civic and social viability in the Merged Project Areas.”

“Facilitate private investment and revitalize the Merged Project Areas through the improvement and installation of public improvements, public safety provisions, transportation, circulation and parking facilities to reduce congestion, improve public safety and accommodate long-term growth and development patterns. “

“Facilitate the establishment or enlargement of public, semi-public and institutional uses . . . including assistance, incentives, grants, loans, subsidies or reimbursement for the restoration, construction or improvement of community facilities including but limited to . . . police facilities . . .”

2. The City Council further finds and determines the Summary Report has been prepared pursuant to and is in compliance with Health and Safety Code Section 33679.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 14th day of June, 2005 by the following vote:

SUMMARY REPORT PURSUANT TO
SECTION 33445 AND SECTION 33679 OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW
ON A CONTRIBUTION FROM THE BRENTWOOD REDEVELOPMENT AGENCY
TO THE CITY OF BRENTWOOD’S POLICE FACILITY
(Capital Improvement Project #337-3142)
May 25, 2005

I. Introduction

The following summary report (Summary Report or Report) has been prepared pursuant to Sections 33445 and 33679 of the California Health and Safety Code/Community Redevelopment Law (CRL). As described below, elements of the proposed project are subject to the findings of Section 33445 and the requirements of Section 33679.

II. Legislative Requirements

Section 33679 of the CRL states that before a redevelopment agency commits to use the portion of tax revenues to be allocated and paid to an agency pursuant to subdivision (b) of Section 33670 of the CRL (tax increment financing) for the purpose of paying all or part of the value of land for, and the cost of the installation and construction of, any publicly owned building, other than parking facilities, the legislative body (City Council) shall hold a public hearing.

Notice of the time and place of public hearing shall be published in a newspaper of general circulation in the community for at least two successive weeks prior to the public hearing. There shall be available for public inspection and copying, at a cost not to exceed the cost of duplication, a summary, which includes all of the following:

1. Estimates of the amount of such tax increment proposed to be used to pay for such construction of any publicly owned building, including interest payments (see Section IV, below).

2. Sets forth the facts supporting the determinations required to be made by the legislative body pursuant to Section 33445 (see Sections V, VI and VII, below).

3. Sets forth the redevelopment purpose for which such tax increment are being used to pay for the construction of such publicly owned building (see Section V, below).

The summary shall be made available to the public for inspection and copying no later than the time of the first publication of the notice of the public hearing.

CRL Section 33445 states that, notwithstanding Section 33440 (which addresses construction of residential, commercial and industrial buildings), an agency may, with the consent of the legislative body, pay all or a part of the cost for the construction of any building, facility, structure, or other improvement which is publicly owned either inside or outside the project area, if the legislative body determines all of the following:

1. 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 inside another project area, or in the case of a project area in which substantially all of the land is publicly owned that the improvement is of benefit to an adjacent project area of the agency (see Section V, below).

2. That no other reasonable means of financing the buildings, facilities, structures, or other improvements, are available to the community (see Section VII, below).

3. That the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements will assist in the elimination of one or more blighting conditions inside the project area or provide housing for low or moderate income persons, and is consistent with the implementation plan adopted pursuant to CRL Section 33490 (see Section V and VI, below)

III. Description of Project

The City of Brentwood Police Department currently resides at 100 Chestnut Street, located within the Downtown Core and the Merged Redevelopment Project Area. The building is 8,500 square feet and significantly less than recommended for an optimum work environment necessary for the activities, function and safety of police personnel. This was confirmed by the space needs assessment performed in early 2000. Furthermore, Brentwood is experiencing growth at a rate far in excess of any time in its history, with a 39% increase in population from 2002 to 2005.

In 2001, the citizens of Brentwood voted in favor of a general obligation bond in the amount of $6M to partially fund a new Police Facility. An original site for the new Police Facility located at 1000 Central Boulevard, and within the Merged Redevelopment Project Area, was programmed at 35,000 square feet. During the off-site improvement phase at 1000 Central Boulevard, US Print filed bankruptcy and its 10-acre property at 9100 Brentwood Boulevard, also located within the Merged Redevelopment Project Area, went into foreclosure. US Print removed personal property, equipment and machinery from the building, and the property’s assessed value decreased by more than $11M in one year.

The City Council approved the purchase of the old US Print site and its two buildings of 87,000 square feet for $6,680,000, with the intention of abandoning the 1000 Central Boulevard site for the new Police Facility, demolishing existing and reconstructing all new tenant improvements, and seismically retrofitting the structure at 9100 Brentwood Boulevard to accommodate a 45,000 square foot Police Facility (“Project”). The 1000 Central Boulevard site will be sold for economic development purposes, job creation, or high-density housing, to increase property taxes and encourage private investment within the Merged Redevelopment Project Areas.

New tenant improvements are in the process of being constructed at 9100 Brentwood Boulevard, and occupancy is anticipated in June 2005. The new space will include holding facilities and sally port, an emergency operations center (EOC), a dispatch center, evidence area including viewing capabilities, SWAT area, records and reception, locker and workout area, a community room, break room and office space. Exterior improvements include parking modifications, lighting, a plaza area, landscape, an additional driveway and signage.

IV. Estimate of Tax Increment Financing

The Project includes the demolition and reconstruction of interior tenant improvements and exterior enhancements of the existing building structure at 9100 Brentwood Boulevard.

The total Project costs are estimated at $16,318,500. Using Community Facility Fees collected from residential and commercial development projects throughout the City in the amount of $8,318,499 and voter-approved general obligation bond proceeds in the amount of $6.0M, there is a “gap” of $2.0M. As shown in the table below, the Agency proposes to close the gap by contributing $2.0M to the Project from its 2001 Tax Allocation Bond proceeds. This is an allowable use of the Agency’s tax increment because this facility is a benefit to the Downtown Project Area’s businesses, residents and visitors.

Summary of Construction and Rehabilitation Costs by Component
City Cost Agency Cost Total Cost
Legal $40,000 $40,000
Planning and Design 1,138,499 1,138,499
Construction 6,385,000 $2,000,000 8,385,000
Project Administration 75,000 75,000
Land Acquisition 6,680,000 6,680,000
Total $14,318,499 $2,000,000 $16,318,499
Source: CIP 337-3142

CRL Section 33679(a) requires the Agency to estimate the amount of tax increment proposed to pay for the construction of any publicly owned building, including interest payments. The Agency uses its tax increment revenues to make annual payments towards retiring its 2001 Tax Allocation Bond. Over 30 years, the $2.0M portion of the Bond proceeds to be paid by tax increment revenues for this Project, including interest, is estimated at $3.3M, or $571,000 in present value (6% discount rate).

V. Redevelopment Purpose, Benefit to the Project Area and Blight Elimination

A. The purpose of assisting the Project with a portion of the construction and rehabilitation costs is to 1) improve and eliminate deficiencies and inadequacies of existing police facilities at 100 Chestnut Street; 2) better accommodate the increase in safety personnel that has taken place in the past several years in response to a community mandate of 1.5 officers per 1000 residents; 3) enhance the public safety by ensuring the City is adequately prepared to respond to community and regional emergencies; 4) re-use a vacant, underutilized building at 9100 Brentwood Boulevard in the Merged Redevelopment Project Area; and 4) improve circulation by removing city employees from 100 Chestnut Street and the immediate Downtown Core.

B. The Project is located within the Merged Redevelopment Project Area and primarily benefits the Project Area by 1) providing future development opportunities in the Downtown Core at the site of the existing obsolete public building; 2) acting as a catalyst to stimulate and encourage future redevelopment and private investment at both the 100 Chestnut Street and 1000 Central Boulevard sites; 3) alleviating the shortage of on- and off-street parking within the Downtown Core by removing city employees from the 100 Chestnut Street site; and 4) re-utilizing and rehabilitating a vacant, underutilized building at 9100 Brentwood Boulevard located within the Project Area.

C. The Project will assist in the elimination of blighting conditions in the Project Area by 1) removing an existing police facility located at 100 Chestnut Street that is obsolete and inadequate; 2) providing an opportunity to assemble parcels suitable for modern, integrated development in the Downtown Core; 3) providing improved public safety; 4) improving convenient parking to the Downtown Core businesses; and 5) replanning and redesigning a vacant, underutilized building in the Project Area.

VI. Conformance with Downtown Redevelopment Plan and the Implementation Plan

The provision of police facilities is included in the Brentwood Redevelopment Plan adopted in 1981, as well as in the Implementation Plan 2004/05 – 2008/09 adopted in March 2005, as projects under the Public Improvement and Community Facilities Programs.

VII. Methods of Financing Available to the Agency

There are no other reasonable means of financing the Project’s $2.0M gap available to the City. The City’s Community Facility Fee Program is fully committed to other equally important community facilities. The General Obligation Bond, Series 2002, in the amount of $6.0M to finance the acquisition, construction and improvement of a new Police Facility has fully been allocated to the Project. Given the current financial constraints on the State and Federal budgets, there is little grant funding available from these sources for the Project. The Capital Improvement Program, which is targeted for roadway, water, sewer, parks, solid waste, and ongoing maintenance, reflects an unfunded amount of approximately $68M. Given the stresses on the existing City budget, an additional debt service obligation would be difficult. The City is looking to its Redevelopment Agency to fund a portion of the proposed Project. This will allow the City to preserve its existing funding levels for City operations, projects and enterprises.

City Administration
City of Brentwood City Council
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Brentwood, CA 94513
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E-mail allcouncil@brentwoodca.gov