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2002-06-04 Special CIC MinutesMINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY - - JUNE 4, 2002 - - 7:25 P.M. Chair Appezzato convened the Special Meeting at 7:25 p.m. Commissioner Daysog led the Pledge of Allegiance. ROLL CALL - Present: Commissioners Daysog, DeWitt, Johnson, Kerr, and Chair Appezzato - 5. Absent: None. 1VTT1\TTT9'7C (02 -013) Minutes of the Special Community Improvement Commission Meeting of May 7, 2002. Approved. Commissioner Johnson moved approval of the minutes. Commissioner Kerr seconded the motion, which carried by unanimous voice vote - 5. AGENDA ITEMS (02 -014) Recommendation to: 1) initiate boundary change amendments, fiscal merger and technical corrections for the Alameda Point Improvement Project (APIP), the Business and Waterfront Improvement Project (BWIP), and the West End Community Improvement Project (WECIP); 2) approve budget expenditure and contract amendment with Seifel Associates, Inc.; 3) recommend that the City Council adopt a Resolution expanding the BWIP survey area; and 4) recommend that the City Council enact an ordinance to repeal the time limit for establishing debt in the WECIP as provided for in SB 211. Commissioner Daysog inquired whether deadlines are involved. Elizabeth Seifel, Consultant, responded June 2003 is WECIP's time limit for incurring debt; after June 2003, WECIP can no longer incur bonded indebtedness or any other form of debt without adopting an ordinance to repeal or extend the time limit; the recommendation is to amend APIP by transferring the Catellus project East Housing, currently in APIP, into BWIP, which is a minor amendment to APIP and a major amendment to BWIP; merging the BWIP Plan with WECIP at the same time is more cost effective and time efficient; the process takes about a year. Commissioner Daysog inquired whether a two -week postponement would Special Meeting Community Improvement Commission June 4, 2002 impact time constraints, to which Ms. Seifel, Consultant, responded in the negative. Commissioner Kerr inquired whether redevelopment areas have a finite length, to which Ms. Seifel, Consultant, responded in the affirmative. Commissioner Kerr inquired what the impact on WECIP's existing debt obligation would be; stated the State is proposing to eliminate the Educational Revenue Augmentation Fund (ERAF) shift exemption for redevelopment areas; inquired whether the ERAF shift would jeopardize the City's ability to pay existing bonds. Ms. Seifel, Consultant, responded pass through obligation does not trigger immediately; passthrough obligation would be calculated based on assessed value as of Fiscal Year 2003 -04; existing bonds are secured by tax increment generated by an assessed value prior to said year [FY 2003 -04]; there are sufficient funds to pay the passthrough; passthrough obligation for the first 10 years is only 200 of incremental growth above the FY 2003 -04 base year amount; calculations are only on incremental growth above FY 2003 -04, which is the amount distributed to taxing entities for ten years; then there is an increase, a second tier, which begins after said time [10 years]. Commissioner Kerr inquired about how much of the tax increment would be retained. Ms. Seifel, Consultant, responded the CIC would have access to more dollars than the City would without the merger; the WECIP generates tax increment, while the BWIP does not; merger enables WECIP dollars to be spent in BWIP justifying continuation of collecting WECIP funds to alleviate adverse physical and economic conditions in BWIP; the CIC will rapidly run out of projects to spend WECIP money. Commissioner Kerr stated taxes of some kind would continue to be collected from WECIP and would go into the General Fund. Ms. Seifel, Consultant, responded if the [WECIP] Plan stopped, funds would go into the General Fund versus to the CIC; more funds would go to the CIC to fund improvements than would go into the General Fund. The Executive Director stated the cents of every property tax dollar; goes to other taxing agencies; staff Special Meeting Community Improvement Commission June 4, 2002 City only retains twenty -six three quarters of every dollar can calculate the difference between letting the [WECIP] project area lapse and consolidating [WECIP and BEWTIP] to continue generating tax increment. Commissioner Kerr inquired whether case law exists regarding fiscal merging of two redevelopment areas involving blight, to which Ms. Seifel, Consultant, responded merger is an allowable choice and has been done by many agencies. Commissioner Kerr stated the question is whether the City would get more money from property taxes or tax increment; requested the vote be delayed until staff reviews the State's completed budget plans; stated that she would recuse herself from voting on the fourth recommendation [that the City Council enact an ordinance to repeal the time limit for establishing debt in the WECIP as provided for in SB 211] because a house count around WECIP has not been completed and she lives near a little corner of WECIP. Chair Appezzato stated the main benefit of joining the BWIP and WECIP is to focus revenues on where funds are needed most. Commissioner Daysog stated that he is concerned with ensuring that military base conversion remains a separate redevelopment area; BWIP should continue to fund activities east of the [former] base; inquired whether there are guarantees that historic Alameda, the BWIP and businesses on Park Street and Webster Street will get their share [of funding]; requested staff to structure funds to allow tracking. The Executive Director stated the Economic Development Strategic Plan and Downtown Vision have been adopted and will be used to prioritize spending. The Development Specialist stated several stages would require approval during the one -year process; Seifel Consulting will develop a detailed report on economic impacts, including ramifications of questions raised tonight. Commissioner Daysog requested the impact of APIP being reassessed be clarified. Ms. Seifel, Consultant, responded that to allow transfer, APIP must be reassessed to demonstrate that East Housing meets redevelopment blight standards; military base law blight standards are less stringent. Commissioner Daysog moved approval of the staff recommendation. Commissioner Johnson seconded the motion. Special Meeting Community Improvement Commission June 4, 2002 Under discussion, Commissioner Johnson requested staff to include the economic impacts of not approving the recommendation in future reports. Commissioner Kerr requested the motion be amended to approve only the first three recommendations. Commissioners Daysog and Johnson agreed to amend the motion. Commissioner DeWitt noted improvement project areas are established to benefit the community. Commissioner Kerr requested staff to review the State's completed budget plan. On the call for the question [approval of 1) initiating boundary change amendments, fiscal merger and technical corrections for the Alameda Point Improvement Project (APIP), the Business and Waterfront Improvement Project (BWIP), and the West End Community Improvement Project (WECIP) ; 2) budget expenditure and contract amendment with Seifel Associates, Inc.; and 3) recommending that the City Council adopt a Resolution expanding the BWIP survey area], the motion carried by unanimous voice vote - 5. By consensus, on the call for the question [approval of recommending that the City Council enact an ordinance to repeal the time limit for establishing debt in the WECIP as provided for in SB 211], the motion carried by the following voice vote: Ayes: Commissioners Daysog, DeWitt, Johnson and Chair Appezzato - 4. Noes: None. Abstentions: Commissioner Kerr - 1. ADJOURNMENT There being no further business, Chair Appezzato adjourned the Special Meeting at 8:00 p.m. Respectfully submitted, Lara Weisiger Secretary, Community Improvement Commission The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Community Improvement Commission June 4, 2002