CITY OF SANTA BARBARA
JOINT COUNCIL AND REDEVELOPMENT AGENCY AGENDA REPORT
AGENDA DATE: TO: FROM: SUBJECT: July 31, 2007 Mayor and Councilmembers Chairperson and Boardmembers Housing and Redevelopment Division, Community Development Department Proposed Amendment To The Central City Redevelopment Project Plan To Extend Agency’s Power Of Eminent Domain
RECOMMENDATION: A. That the Redevelopment Agency Board adopt, by reading of title only, A Resolution of the Redevelopment Agency of the City of Santa Barbara, Approving and Adopting the Report to the City Council on the Proposed Amendment to the Redevelopment Plan for the Central City Redevelopment Project to Extend the Redevelopment Agency’s Power of Eminent Domain as authorized by California Redevelopment Law Section 33333.4(a)(3), and Submit the Report, Proposed Amendment and Negative Declaration Addendum Relating thereto to the City Council; and B. That Council introduce and subsequently adopt, by reading of title only, An Ordinance of the Council of the City of Santa Barbara Amending Ordinance Nos. 3566, 3923, 4438, 4894, 5098, 5089, 5314, 5363 and 5388, and Approving and Adopting the Proposed Amendment to the Redevelopment Plan for the Central City Redevelopment Project. DISCUSSION: The Central City Redevelopment Plan (CCRP) authorizes the Agency to exercise the power of eminent domain to accomplish the elimination of blight in the Project Area and outside the Project Area as allowed by law. According to the California Community Redevelopment Law, a redevelopment agency’s power of eminent domain must be limited to a 12-year period. Agencies are allowed, however, to extend the power of eminent domain for additional 12-year periods through a simplified plan amendment process. The purpose of this requirement to renew the authority periodically is to be sure that redevelopment agencies and city councils carefully consider the use of such a significant power over private property. The CCRP provides that the Agency’s power of eminent domain will expire on August 30, 2007.
REVIEWED BY:
__________Finance
__________Attorney
Agenda Item No._________________
Joint City Council and Redevelopment Agency Agenda Report Proposed Amendment To The Central City Redevelopment Project Plan To Extend Agency’s Power Of Eminent Domain July 31, 2007 Page 2
The Agency and the Council previously extended the original eminent domain authority through an Amendment of the Central City Redevelopment Plan that was approved by City Council in 1998. At that time, it was anticipated that the Plan would expire on August 30, 2007, and the eminent domain time extension was linked to that date rather than through a full 12-year term that would have expired in 2010. Subsequently, the Plan received a five-year extension in 1999 to extend its life from 2007 to 2012, as a result of new state law. Since that time, the Plan has been extended by three one-year Education Resource Augmentation Fund (ERAF) program extensions, from 2012 to 2015. Unless further extended, the Plan will expire in 2015. Although it has been very sparingly and judiciously used by this Redevelopment Agency, eminent domain can be an effective tool to facilitate redevelopment of the Project Area. The most recent and most successful use of eminent domain authority resulted in the development of the Paseo Nuevo mall which has served as a catalyst for rejuvenation of the Downtown commercial district. The Agency was able to acquire certain parcels in private ownership through negotiation that included acquisition under threat of condemnation, which provided property tax relief for some of the property owners to the degree that the transactions were practical for them. Only three of some 33 parcel transactions resulted in contested acquisitions. As guaranteed by state and federal law, the rights of the property owners to just compensation for real property, for business loss, and for relocation costs were fully protected. These protections would continue to be applicable to any eminent domain activities authorized by the proposed extension of eminent domain authority for the Redevelopment Agency. Under the current Plan, the Agency has until August 30, 2007, to commence any eminent domain authority, while the duration of the Plan’s effectiveness continues until August 30, 2015. While the Agency does not have specific plans to use its eminent domain authority at this time, it may be necessary for the Agency to consider eminent domain over the remaining duration of the Plan. The proposed amendment would extend the Agency’s eminent domain authority from August 30, 2007, to August 30, 2019, or the expiration of the Plan, whichever is sooner. The Amendment Process The amendment process requires that the Redevelopment Agency adopt the Report to the City Council and make the required findings. The City Council would then introduce and subsequently adopt an ordinance amending the Redevelopment Plan. Environmental Review An Initial Study (ENV98-0360) was prepared in 1998 pursuant to the California Environmental Quality Act (CEQA) Guidelines to evaluate the potential environmental effects associated with the Plan Amendment to extend the Agency’s power of eminent domain to August 30, 2007. This initial study found that the proposed Plan Amendment to extend the time limit of the Plan’s existing eminent domain authority would not have a significant adverse impact on the environment. As such, on August 20, 1998, a
Joint City Council and Redevelopment Agency Agenda Report Proposed Amendment To The Central City Redevelopment Project Plan To Extend Agency’s Power Of Eminent Domain July 31, 2007 Page 3 Negative Declaration for the proposed Amendment was completed and made available for public inspection. On November 17, 1998, the City Council and Agency Board approved the Negative Declaration for the proposed Plan Amendment. The proposed Plan Amendment to further extend the power of eminent domain involves no other changes to the Plan. CEQA Guidelines allow for preparation of an addendum to a previous negative declaration if only minor changes or additions are necessary to make the prior document adequate for the current project. An addendum to Negative Declaration ENV98-0360 for the Redevelopment Agency of the City of Santa Barbara Proposed Redevelopment Plan Amendment (MST2007-00273) has been prepared in accordance with CEQA Guidelines. The environmental review has been deemed complete. The Addendum to the Negative Declaration is attached to the Agency Report. General Plan Conformance Because the proposed Redevelopment Plan Amendment does not include any change in the Redevelopment Plan affecting the City’s General Plan or the redevelopment activities authorized under the existing Redevelopment Plan, and only extends a time limit to continue the use of eminent domain, the Redevelopment Plan as proposed to be amended remains in conformance with the City’s General Plan. California Redevelopment Law CRL Section 33333.4(a) allows an agency to extend its power of eminent domain in 12year increments. If a redevelopment plan was adopted prior to October 1, 1976, an agency may approve such an extension through a simplified plan amendment process so long as certain findings that are supported by substantial evidence can be made. The City of Santa Barbara Central City Redevelopment Plan was adopted on November 14, 1972, and therefore is eligible to extend its eminent domain authority for up to 12 additional years to acquire property within the Project Area and outside the Project Area as permitted by law and with concurrence of the City Council. Required Blight Findings The Plan Amendment can be accomplished through an Ordinance of the City Council amending the Redevelopment Plan after the Agency, based on substantial evidence, makes the following findings: That significant blight remains within the Project Area; and That this blight cannot be eliminated without the use of eminent domain
The 2007 Amendment to the Central City Redevelopment Plan Report to Council (Report to Council) illustrates the variety of programs in which the resources of the Agency have been, and will continue to be, used until Plan expiration to address blight and blighting influences in the Project Area. For 30 years, the Redevelopment Agency has been generally successful combating blight, with eminent domain authority used as a last resort, among its available tools.
Joint City Council and Redevelopment Agency Agenda Report Proposed Amendment To The Central City Redevelopment Project Plan To Extend Agency’s Power Of Eminent Domain July 31, 2007 Page 4 By making the findings in the report, the Agency Board will maintain its current ability to combat blight and blighting influences, with eminent domain utilized as a last resort method. Pending Constitutional Amendment It should be noted that a proposed State Constitutional Amendment, ACA 8, would add a number of provisions to the California Constitution if approved by the voters. The amendment includes a prohibition of the use of eminent domain for acquiring singlefamily, owner-occupied homes for redevelopment. The California Redevelopment Association supports ACA 8 as an appropriate and measured response to public concern about condemnation of such properties, preferring it to other potential legislative campaigns that might be less measured. ACA 8 has passed the Assembly Judiciary Committee by a comfortable margin (7-3). The legislation will require a twothirds vote for passage by the entire Assembly. ACA 8 will move on to another policy committee where it will be heard again before it moves to the floor of the Assembly. If the voters ultimately approve ACA 8, the Agency would no longer have the authority to acquire single-family owner-occupied homes, regardless of the proposed Plan Amendment. Recommendation Over the past 30 years, the Agency has successfully mitigated some of the identified blighting conditions through implementation of various redevelopment initiatives, including Paseo Nuevo, the waterfront park, parking lots off State Street, railroad station renovations, and street improvements. However, continued redevelopment progress will be contingent upon the Agency’s ability to utilize redevelopment tools to renovate, rehabilitate, reconstruct and acquire additional Project Area properties. By extending the period to employ eminent domain (as a last resort) to acquire property, the Plan Amendment would permit the Agency to continue to effectively remove persistent blighting conditions in the future. ATTACHMENT: PREPARED BY: SUBMITTED BY: APPROVED BY: Report to the City Council (including Amendment Text and Negative Declaration Addendum) David Gustafson, Housing and Redevelopment Manager/Assistant Community Development Director/MEA Paul Casey, Deputy Director City Administrator's Office