Loading...
HomeMy WebLinkAbout1975-03-18; City Council; 3325; Redevelopment Agency creation74- 7,. THE CITY OF CAR LS BA D, C A L I F'O R N I A Agenda Bill No. 33s Date : March 18, 1975 - Ref erred To : Subject: Submitted By :. CREATION OF REDEVELOPMENT AGENCY City Manager Statement of the Matter The Carlsbad Chamber of Commerce and the Downtown Merchants Association have submitted letters to the City in support of City participation in the Plaza Camino Real expansion. Both of these letters are conditioned upon utilizing revenue generated from such expansion for the redevelopment of downtown. The Chamber of Commerce proposes, as a means of accomplishing this, the creation of a redevelopment agency. Exhibit Letter from Carlsbad Chamber of Commerce Letter from Downtown Merchants Association Staff Recommendations to the City Manager. See City Manager recommendations 1:. Dti tc: March 18, 1975 c__ City Manager's Recommendations The proposals submitted appear to have merit although the staff has not analyzed it in detail. financing through the creation of a redevelopment agency is one that is widely accepted professionally throughout the State of California. A complete analysis of this special proposal has not been made pending some change in existing Council Policy relative to City participation in the Plaza Camino Real Shopping Center. The general concept of tax increment It is recofnmepded that the Council give serious consideration to the proposal, recognizing that its implementation would result in direct - or indirect City participation in the Plaza expansion. Preliminary evaluations indicate that the downtown area tax base by itself would have difficulty in generating funds for implementation of any signifi- cant redevelopment. If the Council wishes to proceed, they should instruct the staff to prepare a preliminary report to help answer many of the questions which are normally raised prior to making a final decision. The report would include a fairly detailed analysis of the steps to be taken in proceeding with the establishment of a redevelopment agency. It is anticipated that the staff will wish some input into this report from one or more persons with expertise in the redevelopment field. This should include a redevelopment attorney. The Council should authorize the expenditure of a sum, not to exceed $700.00. . , Co tin c i 1 Ac t i 0 n 3-18-75 The City Council authorized the City Manager 'to develop a staff report on the desirability of establishing a Redevelopment Agency, to include the points raised by Cmn. Chase; authorization was given for the expenditure of funds not to exceed $700.00 if the . study requires an outside consultant, and that the report be returned to the Council for consideration by April 15, 1975. CARLSBAD CHAMBER OF COMMERCE POST OFFICE BOX 597 CARLSBAD, CALIFORNIA 92008 (714) 729 5924 The Hon. Mayor Robert Frazee Members of the City Council City of Carlsbad Please be advised that at the regularly-scheduled meeting of the Board of Directors of the Carlsbad Chamber of Commerce on March 5, 1975, the pro- posed expansion of Plaza Camino Real was discussed. Consideration of sev- eral factors were included in the discussion, with particular reference to the possibility of an annual loss of City revenues in the amount of $39,000. 00 should the Sears facility be located outside the city limits. The Board noted that thr report proposed by the consultant to the City indi- cates that the Sears exp;\nsion utilizing *Parking Revenue bonds, would gener- ate between $4-7. 5 million over the next 20 years. It fhrther indicates that the funds estimated to a(-crue to the city are ip excess of bond amortization, costs of municipal services, and the cost of the minimal population growth resulting from the proposed expansion. Additionally, the utilitzation of surplus bonding capacity by the City of Carlsbad for the benefit of downtown Carlsbad would be extremely beneficial to all residents and businesses in Carlsbad. After further discussion, it was rcvcalcd that the crcntion of A Community Re- development Agency would provide more funds and with less risk to the City. Therefore, by unanimous vote, the Board of Directors of the Carlsbad Chamber of Commerce, the following are being transmitted to you for your consideration and expeditious action: It is recommended that. . . 1) Real with no financial risk to the City; should any risks be incurred, they should be secured by May Stores, Inc. through separate agreement; The City of Carlsbad agree to participate in the expansion of Plaza Camino 2) the total funds available for the proposed expansion be limited to $1 million for parking facilities and the cost of the extension of Marron Road; 3) the excess bonding capacities available from the proposed expansion be CARLSBAD CHAMBER OF COMMERCE - OFFICES, ELM AVENUE AT OLD SANTA FE DEPOT utilized for the redevelopment of the downtown area; 4) the City immediately take the steps necessary to form a Community Re'de- velopment Agency to accomplish the goals expressed in this communication; 5) the successful documentation of the proposed Sears Store be accomplished concurrent with the formation of the Redevelopment Agency and the prepara- tion of the proposed redevelopment plan for downtown Carlsbad. The utilization of tax increment financing will greatly enhance the City's and the Chamber's desires to provide the residents of Carlsbad with a downtown business district of which we can all be proud. Rest assured that all members of the Chamber Board of Directors stand solidly behind the City Council in the venture and will be readily available to assist in making 1975 the year that started the redevelopment of downtown - Ca rls bad. /JJ Harry W. Swanson President HWS/ cd v- Ah / CARLSBAD. CAUFORNIA 92006 2/28/75 wr Robert FYazee Members of the City Council City Hall Carlabad, California 92008 Dear Mayor Frszeet The Directors of the Downtown Plerchant's Aaeociation of Carlebad, by this letter, indicate the conditional eupport of the proposed action for the City of Oarlabad to provide needed funda for con- struction of parking facilities and extension of Marron Road in the May Company ehopping complex. Support ia conditioned upon the folloningt 1. The City of Carlabad to actively assist in the fonnation of an improveanent dietrict for downtown. Carlebad. 2. The City of Carlabad to make available to the proposed improvement dietrict funds needed to meet the goals and objec- tives of downtown re-development It is the understanding of the Aseociation's directors that as a direct result of the so-called capacity of the project would be substantially in excese of the funds requested by Hay Cumpargr. It is from these excess funds that the City of Carlsbad can provide financial eupport to the propoeed improvenent district, in addition to additional eupport from fcrds derive4 Sy sales tax revemas incresaes derived after completion of the "Sear ' e Expansionn project . Ekpaneion", the bonding Based on the foregoing, the Carlabad Downtown Merchant's Association recommends approval of City participation in the May Company proposal. amkFN ert Re cci Presided - Oowntown Merchant's A8SOCiatiOn RR/~W Copies to: Paul Bussg Harry Swaneon