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Meeting Date: April 11, 2006

Subject/Title: Discussion and approval of annual Redevelopment Agency project priorities funded by the 2001 Tax Allocation Bond Proceeds and in coordination with the City’s Capital Improvement Program

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Director of Community Development

Discuss and approve the annual Redevelopment Agency project priorities funded by the 2001 Tax Allocation Bond Proceeds and direct staff to coordinate the approved project priorities with the City’s Capital Improvement Program as needed.

In February 2001, the Redevelopment Agency identified several redevelopment projects it wished to pursue using $21M of the Tax Allocation Bond (“TAB”) issued and sold in September 2001. Each year thereafter, Redevelopment Agency staff has returned to the Agency Board to re-assess its reservation of TAB proceeds for various projects.

In 2001, the Redevelopment Agency authorized the TAB proceeds be spent to repay the City for outstanding loans it made to the Agency for earlier projects. These loan repayments are identified on Attachment A, under Approved Expenditures, in the total amount of $2,258,000.

Since 2001, the Redevelopment Agency has approved and reserved funds from its TAB proceeds for various capital improvement projects, redevelopment-sponsored development and programs, and specific plan and downtown parking studies. These are identified in Attachment A, under Approved Expenditures and Reservation for Priority Projects. Each year, the Agency re-assesses, re-affirms and revises its reservation of TAB funding and project priorities. And each year, redevelopment staff coordinates these project priorities with the City’s Capital Improvement Program.

Over the last four years, the Agency has reviewed the use of its TAB proceeds and has based its decisions to fund projects that meet the following redevelopment goals and strategies:

• Leverage the bond proceeds to increase future tax increment revenues.
• Create jobs.
• Improve existing vehicular circulation and install new infrastructure.
• Generate sales tax to the City.
• Encourage future private investment in the redevelopment project areas.
• Revitalize the Downtown and Brentwood Boulevard areas by preparing and implementing specific and strategic plans.
• Promote sustainable commercial uses.
• Encourage infill commercial and housing development.
• Promote business retention and attraction.

A year has passed since the Agency’s last priority setting discussion, and priorities have changed for a variety of valid reasons. In preparing for the upcoming Capital Improvement Program, it is timely for the Agency to revisit its project priorities and decide how it wishes to spend the remaining 2001 TAB balance.

Using the goals and strategies stated above, staff recommends the following revisions and new priorities for the Agency’s review, discussion and approval (refer to Attachment A, Reservation for Priority Projects and April 2006 Recommendations for New Projects):

1. Maintain current funding levels for the following priorities:
a. $130,000 for Downtown area safety improvements at First & Oak and Second & Oak Streets.
b. $1,440,000 for a potential community playhouse or performing arts center in Downtown.

2. Reduce funding for the following priorities:
a. $256,210 for Downtown infrastructure to support future development.
b. $225,000 for Brentwood Boulevard Specific Plan EIR and associated studies.
c. $970,000 for Walnut Boulevard widening.

3. Increase funding for the following priorities:
a. $2,285,000 for Lone Oak Road water and sewer improvements, with the caveat that Council has directed staff to investigate establishing a benefit district to recover a portion of the Agency’s costs.

4. Add the following new priorities:
a. $720,000 to fill the detention basin at Harvest Park Drive & Guthrie Lane for future use as a commercial property.
b. $300,000 reserve for a potential surface parking lot at 100 Chestnut Street.
c. $300,000 to underground the utilities on Brentwood Boulevard between Village Drive and Sycamore Drive.

5. Eliminate the following priority:
a. $50,000 for marketing activities, events and functions in the Downtown.

Approximately $107,000 TAB funds will remain from the original $21 million bond issuance if the staff recommendations, as proposed herein, are approved by the Agency. Ultimately, 100% of the bond proceeds will be used on project-related expenditures. No proceeds from the bonds were used for administrative costs or salaries, which are permitted uses.

Staff anticipates the Agency will be in a position to issue tax increment bonds in another two years, when new developments are completed within the Merged Redevelopment Project Area and, in turn, will generate increased tax increment revenues. Proceeds from a future bond will then be used for new projects as identified and approved by the Agency, for example:

• Parking facility with first floor retail to support the increased retail and restaurants envisioned by the Specific Plan approved by the Council in December 2005 (Downtown Action Plan).
• New streetscape design and improvements and upgraded water and sewer infrastructure in the Downtown (Downtown Action Plan).

• Brentwood Boulevard widening, south from Chestnut Street to Fir Street (Downtown Action Plan).
• Brentwood Boulevard widening, north from Marsh Creek to city limits.
• Brentwood Boulevard water and sewer, north of Lone Tree Way.
• Infrastructure in Central Business Park (SPA B) to support job creation.

The estimated costs for the future capital project examples above range from $25M to $30M. Coupled with the $21M of community improvements from the existing bond, a significant contribution of over $50M will be invested by the Redevelopment Agency towards the revitalization of Brentwood’s core areas within a ten-year period, exclusive of housing projects.

None at this time. Each of the projects identified as priorities will be brought before the Agency for consideration and official approval prior to commencement.

Attachment A


2005 2006 PROPOSED
Original Bond Issuance - September 11, 2001 21,415,000.00 21,415,000.00
Refinance Series A TAB, Bond Issuance Costs and Misc. Fees -5,073,062.66 -5,073,062.66
$16,341,937.34 $16,341,937.34
Interest earned on Bond Funds from 2001 to 2005 $1,077,000.00

Repay Water Facility Fee Fund, Res. RA-36, 12-11-01 322,000 322,000
Repay Water Facility Fee Fund, Res. RA-36, 12-11-01 574,167 574,167
Repay Parks & Trails Fee Fund, Res. RA-36, 12-11-01 521,223 521,223
Repay Roadway Facility Fee Fund, Res. RA-36, 12-11-01 287,390 287,390
Repay City for KB/Meadows Loan, Res. RA-61, 10-8-02 553,215 553,215
Reimbursement Agrmt. with CL Land Management, RDA Reso RA-42, 3-26-02 1,202,330 1,202,330
Reimbursement Agrmt. with City for SIC Infrastructure Imprvmts, Res. RA-58 & RA-78 3,728,000 3,728,000
Watry Consultants for Downtown Retail/Parking Structure Study, Res. RA-79 2-9-03 55,200 55,200
Extension of O'Hara Avenue to Second Street, Res. RA-76 9-23-04 1,000,000 1,000,000
Portable Stage for Downtown Events, Res. RA-80, 1-13-04 150,000 150,000
Downtown Infrastructure (sewer collection upgrade), Res. RDA-99, 5-24-05 0 177,600
New Police Station, Res. RDA-100, 6-14-05 0 2,000,000
Specific Plans/Studies (Raney - DTN EIR), Res RA-94, 1-25-05 0 114,000
TOTAL APPROVED EXPENDITURES $8,393,525 $10,685,125

Reserve for marketing activities, events and functions in Downtown 50,000 0
Reserve for Downtown Infrastructure (CIP) 633,810 256,210
Reserve for Specific Plans/Studies (parking, EIR, traffic, economic, etc) 390,000 225,000
Reserve for Lone Oak/Sand Creek/Gracie Lane water & sewer improvements (CIP) 1,490,000 2,285,000
Reserve for Downtown Safety Improvements (CIP) 130,000 130,000
Resreve for Walnut Blvd. Widening (McClarren to Oak) (CIP) 1,600,000 970,000
Reserve for Community Playhouse in Downtown 1,440,000 1,440,000
Reserve for Police Station (CIP) 2,000,000 0

Harvest Park Basin (CIP) 0 720,000
100 Chestnut Street - Surface Parking Lot 0 300,000
Undergrounding Utilities on Brentwood Blvd. - Central (CIP) 0 300,000
TOTAL NEW PROJECTS $0 $1,320,000

REMAINING BALANCE $214,602 $107,602
March 2006 grozenski\ssfiles\bond balance

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