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HomeMy WebLinkAbout1995-07-11 - AGENDA REPORTS - NEWHALL IMPROV PGM (2);er Approval presented by:, Donald Duckworth CONSENT CALENDAR DATE: July 11, 1995 SUBJECT: Newhall Improvement Program DEPARTMENT: Community Development On June 6, 1995, a joint study session including the City Council, Planning Commission and Parks and Recreation Commission was held in the Council Chambers to discuss the status and direction of the Newhall Improvement Program. The session was facilitated by Michael Freedman of Freedman, Tung and Bottomley, the City's Old Town Newhall revitalization specialists, who updated the audience about the outcome of the four (4) previously held community workshops and answered a variety of questions pertaining to Old Town Newhall revitalization. It was suggested by the joint group that staff look into adding a financing strategy component to the program whereby, potential funding sources and strategies can be identified. Using the expertise of their economist, Freedman, Tung and Bottomley would develop a strategy outlining the available options for funding the implementation program. The strategy would be presented in a community workshop forum consistent with the prior workshops. A proposed Scope of Work has been submitted by Freedman, Tung and Bottomley with a cost not to exceed $20,000 dollars. It is recommended that the City Council authorize execution of contract with Freedman, Tung and Bottomley to develop a financing strategy for Old Town Newhall at a cost not exceed $20,000 dollars from Account # 01-4201-290 to implement the Newhall Improvement Program as delineated on the attached scope of work. awdcap71191.ar2[ 1— 1 7� --,) NED Age -In,: Item: (u U7, U5,: 95 16:24 n415 291 51133 t:Ib IRI10MAN T U N G 0 001i0MLEY Urban Design & Planning District Pevltalitation Street &Plaza Design MEMORANDUM VIA FAX DATE: July 5, 1995 TO: Alex Vasquez, Assistant Planner City of Santa Clarita FAX # 805-259-8125 PAGES: FROM: Terry Bottomley RE: Newhall Revitalization Strategy - Financial Analysis L0003/008 Attached is a scope of services and budget estimate by Suzanne Lampert of Mundie & Associates. Based on consultations with City staff, the work includes analysis of seven financing options for revitalization -related capital improvements and programs, two work sessions with City staff, and one public workshop conducted with Michael. The budget for Suzanne's work would be $18,000. FTB will need to work with Suzanne and City staff to evaluate the implications and trade- offs associated with the different options, and to coordinate the public process. Our tasks would include a work session with Suzanne here in San Francisco, participation in one of the City staff work sessions, input/edits on the draft Financial Analysis report, and facilitation of the public workshop, we would address the financing and streetscape modifications on the same evening. The budget for our services would be $2,000, making the total for the Financial Analysis $20,000. Please don't hesitate to call with questions or comments on scope, budget or schedule. Take care TB. attachment 47 Kearny Street Suite 500 San Francisco, CA 94108-5522 415.291.9455 0 u. uv1aI J0SJ t111 00} ��� JAIL -03-1995 08' 2 t- tUrl MUNLIlt HNU H J 1HICJ U z ...0 Newhall Revitalization Strategy: Proposal for Financial Analysis Services Scope of Work Mundie & Associates will work with FTB and the City of Santa Clarita to formulate a plan for financing the recommended projects and programs of the Newhall Improvements Program. Our financing analysis will include the following tasks: Task 1: Review Available Data M&A will review the City Budget, Capital Improvement Program and other relevant financial document to identify potential sources of funds that may be available to finance capital improvement and revitaliza- tion programs. We ask that you send us a copy of these documents for our use during this analysis. If the City has ever undertaken or commissioned a study of additional revenue sources that has resulted in a written report, we would like you to send that (those) report(s). So that we can define and evaluate the characteristics of an assessment district, we ask that you also send the following information • Assessor's parcel maps of the area to be included in the district_ • Computer file (ASCII or Excel) listing the following information for assessor's parcels within the potential district: APN, parcel address, owner, use and use code, parcel area. We ask that you send us in advance a listing of all data provided on a complete parcel record, in case there is additional information that would be useful.. • List of assessor's use codes and the uses they describe. • A description of any existing assessment districts in the study area that includes the boundaries, level of assessment and expiration date of the district. Task 2: Evaluate Financing Options Staff have identified six potential strategies for financing the recommended Newhall Improvement Program. These strategies, and the work tasks we would complete to evaluate them, are: Private investment alone. The City of Santa Clarita would commit no funds either to capital improvements (including streetscape, town square, gateway and community center improvements) or to programs (such as business relocation, business recruitment and facade improvement). The entire program would rely on money invested by private sector property owners, either individually, to improve their own properties, or collectively, through a Business Improvement District or Special Assessment district, to pay for public improvements. We would also investigate the potential usefulness and effectiveness of the Community Reinvestment Act as an instrument for implementation of the program. Mundle 6 Associates 7 15 UJ UL U� -P77jz UO �. TMu 291 �9ti33 1 .. .f,1B �'j 005<008 Proposed Scope of Work Newhall Improvement Program Financing Strategy Revised July 1, 1995 To evaluate this strategy, M&A will estimate the assessment levy that would be charged per assessment unit (e.g., building space, square foot of lot area, linear foot of frontage on San Fernando Road, or some combination of these characteristics, with possible distinction between a "primary benefit area' and a "secondary benefit area'). We will also estimate the total annual assessment that would be levied on lots of typical sizes in the study area, as well as the one-time payment that would be equivalent to annual assessments over a period of years. 2. Private investment plus City grant money. The City of Santa Clarita would add some grant money it has obtained from the state and federal governments to the private invest- ment described for Strategy 1. City staff have identified some money in Community Development Block Grants (CDBG), both specifically to remedy earthquake -related dam- ages and for more general use, and some in Economic Development Administration (EDA) revolving loans that could be devoted to the Newhall Improvement Program. Newhall must compete with other City projects for these funds, but it is possible that some amount could be secured for appropriate projects included in the Program. M&A will rely on City staff to estimate the amount of grant money that could be available for Newhall projects and programs, We will then formulate a financing program that allo- cates responsibility for the Improvement Program among these funds and the private sources considered in Strategy 1.. This analysis will include recalculation of the Assess- ment District levies computed for Strategy 1, to reflect the reduced amount of funding that must be collected from this source. 3. Private investment plus City grant money plus general fund support. In addition to the funds included in Strategy 2, the City of Santa Clarita would adopt either a utility users tax or a business license tax. This tax would be a general tax, and would accrue to the general fund. During budget deliberations each year, City Council would consider a commitment of a portion of the revenues from this source to pay for projects and/or pro- grams included in the Newhall Improvement Program (including retirement of any bonded indebtedness incurred to pay for capital projects in Newhall). M&A will estimate the amount of revenue that the City of Santa Clarita could reasonably expect to collect from each of these sources, using tax rates that are comparable to or lower than those in cities with which Santa Clarita competes for economic development. We will then evaluate the potential contribution from each of these sources to the Newhall Improvement Program, and estimate contributions per parcel (for Assessment District funds), per business (for business license fees) and/or per household (for utility users tax) that would be required to fund the Program. 4. Private investment plus City grant money plus minimum Redevelopment Area. City staff have tentatively defined a "minimum Redevelopment Area" (RDA) that includes downtown Newhall.. This area, if adopted, would have a current assessed value estimated at about $1.3 billion. A portion of the future increases in property tax ("property testi Mundle d Associates 2 UJUL U.9-177jG UO., Trt15 29,1 9633 .. n.»�... FTB ._ .til .... Proposed Scope of Work Newhall Improvement Program Financing Strategy Revised July 1, 1995 increments") that are generated in this area could be used to pay for revitalization projects and programs. M&A will compute the amount of property tax increment that this minimum RDA would be expected to contribute over time, given reasonable assumptions about property values, new development and changes in ownership (all of which affect the assessed values of individual properties). We would then estimate the amount of bonded debt that these tax increments would support. Finally, we would recalculate Assessment District require- ments to reflect the contribution of the RDA revenues to total program costs. 5. Private investment plus City grant money plus medium Redevelopment Area. City staff have also tentatively defined a medium-sized RDA, which has a total current assessed value of about $5.4 billion. M&A would repeat the analysis conducted for Strategy 4, using this larger area to estimate the potential contribution from property tax increments and bonding capacity, 6. Private investment plus City grant money plus maximum Redevelopment Area. Finally staff have identified a maximum -sized RDA, with a total current assessed value of $5.4 billion. (Even though it is called the "maximum -sized RDA," this area is still smaller than the Citywide RDA that was discussed in the past.) M&A will repeat the redevelop- ment analysis performed for Strategies 4 and 5, using this largest area as a basis for pro- jecting property tax increments and bonding capacity.. City grant money plus City funds reallocated from other capital projects. The City of Santa Clarita has an adopted capital budget that allocates money to be spent on projects throughout the city. M&A will work with City staff to review that budget and identify any projects that might have lower priority than the Newhall Improvement Program. If any such projects are found, then we will estimate the total funding that could be assembled from reallocation of the money currently assigned to those projects. This strategy includes no private investment in the form of an Assessment District or Business Improvement District, and no new taxes such as a business license fee or utility users tax. It does, however,. require City decisionmakers to reevaluate the priority of adopted projects in light of their goals for the City as a whole and the Newhall community. For each strategy, M&A will compare our revenue projections to the anticipated costs of revitalization. If necessary, will recommend modifications in the level or tithing of proposed revitalization projects and/or programs. For this analysis, we will rely on FTB for estimates of capital costs and operating costs for downtown revitalization projects and programs. Task 3: Meet with City Staff to Review Interim Findings We will meet with City staff to inform you about our progress and tentative recommendations for financing approaches. At this meeting, we will solicit your feedback on our assumptions and calculations as well as your perspectives about the real potential for implementing some of our ideas. Mundie d Associates u,rUZ,Ja 1L:Gr 9.410 'yi JbJJ H8 JUL-0.5-1iJJ app 7,oub Proposed Scope of Work Newhall Improvement Program Financing Strategy Revised July 1, 1995 We ask that attendance at this meeting include Newhall Improvement Program staff as well as Finance Department, CDBG, and Economic Development staff. Other staff members familiar with these issues would also be welcome. Task 4: Draft a Financing Strategy Based on our investigation and the discussion in the Task 3 meeting, we will draft a financing strategy for the revitalization program. This strategy will identify actions to be taken and the pasty(its) responsible for those actions, the estimated revenues that they will generate, the relative priority of the action and the time frame for action (short term vs. long term). We will submit this draft strategy for your review. Task 5: Present the Draft Financing Strategy at a Community Workshop and a Council/Commission Study Session We will attend one community workshop to describe the financing analysis and present the draft financing strategy. After incorporating community concerns into the draft financing strategy, as necessary, we will attend one City Council study session to present our analysis and the recommended strategy, and to solicit Council questions, comments and concerns. At your discretion, this study session may include the Planning Com- mission and/or the Parks & Recreation Commission. We ask that the format for this session be informal, and that it be held on a night other than a regularly -scheduled Council or Commission meeting night, in a conference room or the Newhall Community Center (depending on the number of attendees expected) rather than in the Council Chambers. Task 6: Finalize the Financing Strategy We will revise the draft strategy to respond to City questions and comments. Our work on this task will be limited to clarifications of the draft and correction of any misstatements; it does not include testing of new strategies or alternatives (which would be defined as new work). We will deliver copies of the final strat- egy to you and/orFTB (for inclusion in their final report), as appropriate. Budget Our charges are based on the actual time devoted to your project by our staff, billed at standard hourly rates. These rates are subject to revision at the beginning of each calendar year. Expenses, such as for subsistence and incidental travel costs, publications and printing, are invoiced at their cost to us. Other expenses are charged according to our current rates (subject to change on January 1 of each year): travel in staff -owned vehicles, 50.28 per mile; in-house photocopying, $0.25 per page; FAX Mundie & Associates 4 11: JJ J 1G._J 411 -Iyl J033 ._r,lb- JULH —b3-1y7� vo-40 QI-Jii IN.I— —w 'i] Uua. UOJ Proposed Scope of Work Newhall Improvement Program Financing Strategy Revised July 1, 1995 receipts, $0.30 per page; FAX transmittals, $0.25 per page; telephone charges (including FAX line), item- ized cost multiplied by 1.8 within the Pacific Bell service area and itemized cost multiplied by 1.2 for long distance calls. Bills are submitted monthly and are payable on receipt. For the scope of work outlined above, we ask that you allocate a budget not to exceed $17,920 without prior authorization from you. This amount would cover both professional time and expenses. Mundie b Associates o 1 06, 95 12:.24 0415 29;. ,., FT13 E0EE0MA T U N G 00TT0MLE Urban Design & Planning District Aevita!liation Street & Plata Design MEMORANDUM VIA FAX DATE: July 3, 1995 TO: Mr. Alex Vasquez q Assistant Planner - 9conomic Development City of Santa Clarita FAX#: (805) 259-8125 FROM: Michael Freedman (Our Fax# is 415-291-9633) # PAGES: S RE: Downtown Newhall Revitalization Program - Financing Strategy Based on our conference call with you and Don (and subsequent follow-up conversations with Suzanne Lampert and yourself), we have modified our Scope of Services for the financing strategy as follows: Q001, 008 We have eliminated the special community workshop set aside for the financing strategy. We will, as requested, attempt to use the remaining workshop from our base Scope to cover both the remaining street design issues, and the financing strategy. Suzanne Lampert of Mundie & Associates will also attend that Community Workshop. 2. We have slimmed down our services on the financing strategy to one meeting with Mundie & Associates to discuss alternatives and to reviewing their draft recommendation report. 3. Mundie & Associates have eliminated services related to testing options not included in the original strategy recommendations. Testing new options or different approaches would be defined as new work. This reduced their feels by $2,080. 47 Kearny Street Suite 500 San Francisco, CA 94105-5522 415.291.9455 N 07105, 95 12: 24 '2415 291 9633 k ;, Z002,008 The overall reduction in fees for the Financing Strategy are $10,000. The current budget totals $20,000. Fees for FTB's porting of the work total $2,080. Services for Mundie & Associates' portion of the work total $17,920. The Scope of Services for Mundie & Associates is attached. As we discussed in our telephone conversation with Don, neither this Scope add-on, nor the original Scope of Services contain services for the analysis or recommendations relating to the parking supply in Downtown Newhall. Both City Staff as well as the participants in the community workshops have determined that this aspect is less pressing than the items originally selected - building design guidelines, revitalization strategy, market assessment, and streetscape improvements. Given the state of Downtown Newhall at this point, we are inclined to agree. The streetscape improvements as currently recommended will make on - street parking more usable. Once Downtown's revitalization gets going, however, parking will need to be looked at more closely. We hope you find this information clear and complete. If you have any questions or require any further information, please do not hesitate to call. - MF