REDEVELOPMENT AGENCY AGENDA ITEM NO. 22
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
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
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
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
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
REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD
MERGED REDEVELOPMENT PROJECT AREA TAX ALLOCATION BONDS, SERIES 2001
2005 2006 PROPOSED
PROJECT USES and PRIORITIES PRIORITIES PRIORITIES
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
Interest earned on Bond Funds from 2001 to 2005 $1,077,000.00
TOTAL AVAILABLE BOND FUNDS $17,418,937.34
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
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
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
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
RESERVATION FOR PRIORITY PROJECTS
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)
Reserve for Lone Oak/Sand Creek/Gracie Lane water & sewer improvements (CIP)
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
TOTAL RESERVATION FOR PRIORITY PROJECTS $7,733,810
APRIL 2006 RECOMMENDATIONS FOR NEW PROJECTS
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