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HomeMy WebLinkAboutCC RES 91-086RESOLUTION NO. 91-85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ADOPTING WRITTEN FINDZNGS IN RESPONSE TO WRITTEN OBJECTIONS AND SUGGESTIONS IN CONNECTION WITH THE PROPOSED REDEVELOPMENT PLAN FOR PROJECT AREA N0. 3 OF THE PALM DESERT REDEVELOPMENT AGENCY THE CITY COUNCIL OF THE CITY OF PAI,M DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Pursuant to California Health and Safety Code Section 33363, the City Council of the City of Palm Desert hereby adopts written findinqs, attached hereto as Exhibit B, in response to each written objection and suqqestion of an affected property owner or taxinq entity received before or at the joint public hearinq on the proposed Redevelopment Plan for Project Area No. 3 of the Palm Desert Redevelopment Aqency, which writte� objections and suggestions are attached hereto as Exhibit A. Th� City Council has not accepted specified written objections and sugqestions for the reasons set forth in the attached written findinqs in response to such written objections and suqqestions. PASSED, APPROVED and ADOPTED this llth day of July , 1991 by the followinq vote, to wit: AYES: KELLY, WILSON, SNYDER NOES : NO�1E ABSENT: N�NE ABSTAIN: BENSON, CRITES , y MAYOR � ATTEST: r L / i , • _ � ;�- , ��--G �C ! �r'� _ CifiSf" CLERK /' j 910617 syc C299.RON <0) .\`.�'J:J� � a.i.� ���i • � _ S _ �!_i�T— 1 � . ., . . ,-y COACHELL� VALLEY RECREATION AND �'AR,K DISTRICT d5 't6 C:MMER�� STR��' SV,T�j �,g g. �YOIO CAL.FORN;A 92201 •�619� 347 3464 � L 1 ��UI'1�' �b, i,�� — - ---- --- Carlos Orte�a Execut�ve Director Falm Desert �edevelopment Agency 73-51� Fred �iaring Drive Palm DeserL, ��A 92260 Re: Proposed Pro;ect r�rea No. 3 Dear ��ar 1 cs : Tlu� ietter �rill confirm that the Coachella Valley Recreation and ParK Di�tr�=� �,"Distr�ct") is prepared �o support the proposed Pro�ect Area No. 3 of t!-:e Palm Desert RedevelepmP.nt Agency !"Agency") in return `or the Aqency's coRmttment to early construct�on of the Recreati�n ��yrraiasi��n/Camnulity Center in the Palm Desert �ivic Center, pursuant to �ne Lease Aqreemp.nt between the District and tne Agency dated May �3, 1990. In return �or =his ccemu tment by the Agency, the District is wzll�ng t���orego :ecuesting a pass-throuqh agreement tor the District's share uf tax �:c:��t generated with.in proposed Pr:.�ect Area No. 3, anci oerr�� `.ne hgency to use the District's share of such tax ir.c:emPs.� =�r the :��nding ot con�truction oT the Recreation ��yttmasi�an/Ca[mn,uiitY �eIlter. T!^.� s ar=3r:ganent is intended to be sinular to that existing arrangerrpnt concerning Aqency Pro�ect Area No. 2, by wlucn tne Agency :�a� agreea �o provide facilities to the DisLrict in lieu of a�ass- chr�ugn �r tax increment generated within Pro�ect Area No. �. Very t:uiy ;jours, ,/�� '/� �lc ' ^ rfc r an Rec_eat:�n and ar uperint�ncient SM/ ictis cc: ?ndreTa Brocxs, Dye, Thomas. Luebs S Mort _c�y,vG BE-�nI.CA JUYES • C�ACi.E_� • _� �_ `.'� . _�`.�ER vo��=� • �J'Ati .eE__5 • v� O • =°-�' -_=--- ��^�♦ .-.. ♦• \'/�• _ � n J ✓ L - - —� .v _ � � . . _ E::HZ3IT "B" e. Summary and Recommendations: The County of Riverside summarized the previously noted objections and comments to the Redevelopment Plan for Project Area No. 3. specifically, pointing out the fiscal detriment issue that was outlined in the Fiscal Review Committee Report which they have attached to their written correspondence dated June 27, 1991. Legal and environmental issues were also summarized. In reiterating these issues, the County recommends that the Agency consider postponing the adoption of the Redevelopment Plan to allow staff to resolve the fiscal, legal and environmental concerns they have raised. Response: The fiscal detriment issue, as outlined in the Counry's written correspondence of June 27 and in the Fiscal Review Committee Report has been responded to in detail within this response, the Agency's response to the Fiscal Review Committee Report and the Report. Adequate discussion and documentation has been provided in the above cited documents that fiscal detriment has not been proved by the County. Further, until such time as the County can produce data and evidence that �iscal detriment and burden will occur because of the adoption of Project Area No. 3, the Agency must assume that no detriment will occur. The issues raised regarding the adequacy of the Redevelopment Plan and of the Environmental Impact Report within the Counry's written correspondence have been answered previously in this response. Finally, in response to the County's request to postpone adoption of the Redevelopment Plan, the evidence provided at che public hearing, the Report and in this response to the written comments received at the public hearing is considered accurate, substantial and . ,P+Imdn\nP�omm G 1 .�J�., _ - - .. �:r ��'J . , _- : . . � E:{HI3IT "B" adequate for the City Council and the Redevelopment Agency to act upon the adoption of the Redevelopment Plan. Further, because of the adverse conditions within the Project Area, it is of the utmost importance that the Redevelopment Plan be adopted now so that redevelopment of the Project Area can commence as soon as possible. P�an�.���m 22 �';�___.., _ �. - E(-._. PE�xs & Kov�.sK� ATTORNEYS AT LAW �4227 'v10NTEREY AVENUE, SUITE 2 PAL�'vl DESERT, C� 9Z260 �619) "3--3463 FAX i619) 436-3442 OAVID M.PETERS ROBERT ,'v1. KOVALSKY June 26, 1991 � — __ _ - - �; . '. � 2 7 ' --- - --- --- — E�C��ir�� �F�:C� �401 �tAtiCHE�TER �`-E`i,E �i '": _ �� EvCI'vITAS C.� a'�'a �619i 136-'s�ill Ci�y Counsel 3oard af Directors Palm Desert City Hall Palm Desert Redevelop�ent Agency 73-510 Fred Waring Drive 73-510 Fred Warinq Drive Palm Desert, California 92260 Palm Desert, California 92260 RE: Mountain View Falls Homeowners & Vista Del Montanas Homeowners Association\Joint Public Hearinq To Consider Adoption of Redevelopment Plan - Project Area 3 Our File No. 1126.1 Dear Board Members: Please be advised that the law firm of Peters & the Mountain View Falls Homeowners & Vista Del Association ("Associations") in thia matter. letter is to demand that the Associations not Piroposed Palm Desert Redevelopment Plan for ("Redevelopment Plan"). Rovalsky represents Montanas Homevwners The purpose of this be included in the Project Area No. 3 The Redevelopment Aqency's authority to establiah a Redevelopment Zone is derived from California Health and Safety Code Section 33I�C ar.d ;333C. Wh�le the Redevelopment Aqency may be entitled to establish a redevelopment zone, the selection and implementation of any proposed Redevelopment Aqency must be fair, non- discriminatory and rational. It is our belief that there is no justification for drawinq a Redevelopanent Zone which includes a selected few small residential homeowners aasociations within a primarily connnercial Redevelopment Zone. There ia no reasonable justification for imposinq the burden (such as to construct a bridge over the Cook Street wash, which incidentally is not within the Redevelopment Zone) which enures to other similar situated residential projects on a few selected properties. Such a plan is arbitrary and capricious in that many Homeowners Associations outside of the project area, yet potential beneficiaries to such a plan, face no adverse financial liability as does this Association, see Leach v. City of San Marcos, 213 Ca1.App.3d 648, 261 Cal.Rptr. 805. E;tn.�I � �; June 26, 1991 RE: Opposition Page 2 to Redevelopment Project Area No. 3 It is our understanding that a major purpose of the Redevelopment Agency is to finance itnprovements within the Project Area by selling '"ax Increment Bonds. Repayment of these bonds come from increases above base year tax assessments of iunproved or resold property within the Project Area. This section further provides that if there is not enouqh incremental tax revenue to service the bonds, the Agency may, in certain circumstances, pass a Special Assessment against the properties within the Project Area. Caii�. riealt:� anu �afa�y �aCa, Sec. 3382u states: "Special Assessment Areas wholly within Redevelopment Project areas may be established and Special Assessments levied within such Special Assessment Areas pursuant to t�is chapter." Calif. Health and Safety Code, Sec. 33817 i.mplies that special assessment areas mny be established only for project areas as they existed on July 1, 19�8. It is our understanding that the City of Palm Desert and the Redevelopment Agency concur with this interpretation and agree that it does not have the right to le�ry a special assessment against any of the properties within �he Redevelopment Zone. We appreciate a letter from the City of Pa'_m Desert and the Redevelopment Aqency statinq that it does not have the power to pass a special assessment or any other direct or indirect tax, revenue enhancing measure or action which would r�sult in any incremental cost to the property owners within the subject Redevelopment Zone. Pursuant to California Health and Safety Code Section 33363 the Associations' request that each objection stated in this letter �e responded to in writinq. Foz your reference the relevant por��ons of �al�forn;a Kealtr. 3nd Safety Code Section 33353 are as fc�llows: "At the hour set in the notice required by Section 3336I for hearinq objections, the leqislative body shall proceed to hear...all written objections. Before adopting the redevelopment plan the leqislative body shall evaluate the report of the aqency, the report and recommendation of the pro j ect area committee, and all evidence and testi.mony f or and against the adoption of the plan and shall make written findinqs in response to each written obiection of an affec�ed property owner or taxinQ entitv. The legislative body sha'_� respond in writinc to the written obiections received before describe the dis�osition of the issues raised. T::e leQislative body shall address the written obiections �n June 26, 1991 RE: Opposition Page 3 E�Nlst� a to Redevelopment Project Area No. 3 faith, reasoned analysis in its res�onse and, for this pur�ose, conclusionary statements uns�p�orted by factual information shall not suffice. (Emphasis by the California State Legislature). For the most part, the proposed Redevelop�ent Zone is comprised of commercial properties. There is no legitimate reason to include 2�ounta�n V�ew Fal�s Homeowners & Vista Del Montanaa Homeowners Association and exclude the Lakes Homeownera Association and the Marriot Project. It is our understandinq that the Lakes and the Marriot are within Project Area 2. The Mountain View Falls Homeowners & Vista Del Montanas Homeownera Asaociation request to either not be included in the proposed Redevelop�ent Project Area 3 or in the alternative, be included within Redevelopment Project Area 2. Finally, the Mountain View Falls Homeowners & Vista Del Montanas Homeowners Associations feel that they are not beinq accorded due process under U.S.C. Code Title 42 & 43 (1983) and the 14th Amendment to the United Stntes Constitution. Thank you for your time and cooperation. If you have any questions, please do not heaitate to contact ma. S�tncerely{' � „' �" / _ ., f� , /. ;,i, C� David M. Peters, Esq. Counsel for Mountain View Falls Homeowners Association Dr� : � m cc: Bob Barco, Prea. Mountain View Fall Homeowners Association Hand Carried ++ O, f '`, . O � �O N 1, f�� I � ;�� ' Gary N. �;oaieil � ' Chuf �idmmucranvc O';�:ce. �' E:(= .�.- .. G 1^ V�' \ ' , � `� �'/ i ' � �tscrteiie �immerman Asstsrant C.�O Counry Administrati�e Office Jtu1e 27, 1991 City of Palm Desert Redevelopment Aqency 73-510 Fred Warinq Drive Palm Desert, CA 92260 RE: City of Pal� Desert Redevelopoent �,qency's Project �rea No. 3 County of Riverside Coaents Ladies and Gentleaen; The County of Riverside has reviewed and evaluated the proposed Redevelopaent Plan !or Project l�lrea No. 3. we find that the proposed Redevelop�ant Plan and related environaental docusents to be leqally inadequate and not supportive of tha findinqs necessary for the establishaent of the Redevelopsent Project P,rea. In addition, the proposed plan causes extre'e fiscal detri�ent to the County General Fund. �s a consequence, the County must oppose the proposed Redevelop�ent Plan at this tiae. We have previously sub�itted to the aqency the report of the Fiscal Reviev Coaittee and the County's independant fiscal review. �Te herewith forsnlly reaub�it both reports and request that the 1►qency adopt the sitiqation �easures and reco�endations contained therein. 1�ilso, the County herewith su�its testiaony for the public record relative to the follovinq areas: 1) qeneral coaents; 2) validity o! tha propoaed Redevelop�ent Plan; 3) co�pliance with the California Environ�sntal Quality �ct; 4) adequacy of City's General Plan; and, 5) si�ary and recoaendations. . : : • ��� � The County relies heavily on property tax revenue to finance the provision of services to residants of cities and unincorporated areas. Such services include health, welfare, cri�inal justice and a variety o! other people oriented services and proqraas. In fact, the majority of County services are provided to city residents. COUNTY ADMINiSTRATNE CENTFR 46-209 Oasis. Room 308 • Indio. Califomia 92201-5994 •(6191342-8340 • Fax (619) 342 S4'8 The increasing costs assaciated with many of these proqrams are financed by increases in assessed valuation attributable to new development, changes in ownership of property and the annual 2$ increase allos�ed by law. When city redevelopment areas are formed, these increases are allocated to the redevelopment aqency thereby leavinq the County inadequate revenues to finance the escalatinq cost of existinq services. �lso, the increase in demand for County services generated by cities' redevelopaent projects must be met without the benefit of additional property tax revenue. City redevelopaent aqencies must provide sufficient revenue, via cooperative aqreeaents, to support existinq services and to finance the provision of services to those attracted to the area by the cities' projects, includinq those who �rork within the city but choose to reside elsewhere. Aside fro� the issue of fiscal detriaent, the County must also question the size and scope of the redevelopaent project for a wealthy resort coaunity with a 1990 population of 20,569. also, the current conditions in this wealthy country club and executive office area show no evidence of bliqht or need for urban renewal. If this Plan is approved, virtually the entire City of Palm Desert will be in a redevelopaent area. We do not believe that this is the intent of the Co�unity Redevelop�ent Law! VALIDITY OF REDEVELOPMENT P.�x The County has serious concerns reqardinq the validity of the proposed Redevelop�ent Plan in it's present form. Our concerns include, but are not liaited to, the followinq: 1. The Redevelop�ent Projact l�irea is not predominantly urbanized as required by Health and Safety Code Section 33320.1. 2. 2i findinq of bliqht by City and �,qency cannot be supported by the available evidence. 3. The Project P,ren includes many parcels which are obviously not bliqhted, and which are unnecessary for the effective development of the area. 4. There is a lack of supportinq evidence to make the findings required by Health and Safety Code 33367 reqardinq the impact of tax incresent financing on taxing entities which derive property tax revenue froa the Project area. 5. The 1�qency has not adequately deaonstrated the need for public participation or provided substantial evidence that private enterprise actinq alone cannot eli�inate the alleqed bliqht. 6. The available evidence fails to support a findinq that the Redevelopment Plan will proaote "the public peace, health, safety and welfare" as required by Health and Safety Code Section 33367. i=�._.._��__, . ... _-., �X�.3:' ,� 7. The proposed Redevelopment Plan does not conform to the City's General Plan. •''_ • . . : • � � � � � �1,� � . • . The Environmental Impact Report (EIR) for the proposed Project �,rea is deficient in a variety of areas which include, but are not lim.ited to, the followinq: 1. The EIR does not adequately assess or provide for mitigation of the Plan's impact on the County. 2. The EIR does not adequately distinguish between mitiqation required by the California Environaental Quality act and the Community Redevelopa�ent Law. 3. The EIR does not identify how the County would provide increased services without the tax revenues qenerated by the Redevelopaent Project. 4. The EIR is lacking in its consideration of all environsental iapacts includinq population growth, housing, transportation, noise, recreation, bioloqical, air quality and others. 5. The EIR does not adequately discuss the timinq for implementation of the Plan. • 6. The EIR does not adequately address the impact of compliance with the Plan's low and �oderate-inco�e requirements. 7. The EIR does not adequately consider the alternative of private enterprise actinq alone to develop the Project Area. 8. The EIR does not address migration into the area as a result of the Redevelopaent Plan. 9. The mitigation monitoring plan outlined in the EZR is inadequate. � � • � ��•�����'��� �_�: , __' : . as a prerequisite to the adoption of a redevelopsent plan, Health and Safety Code Section 33302 requires the City to have adopted a General Plan which aeets the requireaents contained in Government Code Section 65302. The City's General Plan fails to substantially comply with Governaent Code section 65302. The deficiencies include, but are not limited to, the followinq: � �. � _����---�.� :;�. �_-3^ EXHIBIT A 1. The General Plan fails to adequately specify development policies, objectives, principles and standards. 2. The General Plan is out of date, fails to accurately reflect current conditions, and incorporates incorrect and obsolete data. 3. The General Plan's circulation, land use, housinq, open space, noise and safety elements are not in co�pliance with Government Code Section 65302. �V�V i ♦ � f � V�Y � � r � The County of Riverside has several azeas of concern relative to the proposed Redevelopaent Plan for Project area No. 3. First, we would point to the fiscal detri�ent issues outlined in the report of the Fiscal Review Coaittee (copy attached) and ask the aqency to adopt the aitigation 'easures contained therein. Second, the leqal and environaental issues raised in this docu�ent should be discussed and resolved by County and aqency staff prior to adoption of the Redevelopaent Plan. Consequently, we are urqinq the Aqency to postpone adoption of the Plan at this tiae to allow staff to resolve the various fiscal, leqal and environaental concerns relative to this project. We appreciate the opportunity to coaoent on the proposed redevelopaent plan and look fo�ard to workinq with City and Aqency staff to resolve these outstandinq issues. ly submitted, is,t.'ratJ3ve Manaqer .,.....�.�_T_J�� _��. a _�,-, LYN N D. CRAN DALL A��v q V E�5 C� ��qyy . . _ " �.''" ai ga5 ._ � _-_ a.r.,-,.,_ 5.. '_ _ _ . - '"� DGLM �ESEiT �4�.FCRNi4 92260 _� _ o='— June 25, 1991 DELTVERED BY MESSENGER Mr. Carlos Orteqa City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: RedeveloDment Proiect Dear Mr. Orteqa: C,�."i�.T ri � ��.1r� 2 � This letter concerns the public hearinq scheduled for June 27, 1991, with reference to the redevelopment plan for project area number 3. This letter is intended to be made a part of the record of the proceedings. My office represents RK Development and its principals, Sam Russell and Frank Koenen, the owners of the industrial properties known qenerally as Cook Street Business Park. My client's buildinqs are located in the area bounded by Green Way, Seqo Lane, Mayfair and Beacon Hill. Most of the properties are improved but some of them are vacant. My clients wish to make it clear that they do not oppose the establishment of the plan or the project area. They agree that various projects and public improvements might be appropriate ior the area. However, the written public notice sent with respect tc the hearinq indicated by hatched lines that certain public street improvements miqht be contemplated. The public notice further stated that objections should be lodged now in order to remain effective. It is my client�s understandinq that the proposed street aliqnments and the necessity for their construction are not matters which will be before the council at the hearing on June 27th � � � _t��...__.T�:`i .��. � _� EXH:3I' ?. Mr. Carlos Orteqa Page 2 June 25, 1991 notwithstandinq that those streets are shown as possible streets on the public hearinq notice. Nevertheless, my clients desire to lodqe their opposition to the proposed streets. The two streets evidently serve no purpose other than tc join the two industrial areas which are now separated except by access via Cook Street. My clients believe that the street improvements should not be considered in liqht of their very su�7stantial cost without at least traffic studies beinq conducted in order to determine the extent of traffic that would flow between the two industrial areas. Common sense would indicate that very little traffic, probably minuscule in amount, would ever have a need to travel between the two industrial areas. Althouqh traffic alleviation on Cook Street is a major problem, traffic would not be lessen by the proposed streets except for traffic that had as its destination a location in the adjoininq industrial subdivision. This is so because if the destination were otherwise, the vehicle would necessarily end up on Cook Street whether it left the industrial area via the present access or left the area throuqh the adjoininq subdivision. The hatched line indicatinq an extension of State Street would be very expensive. The lots in my client's subdivision and through which the propcsed street is designed to traverse are improved with two buildinqs, each approximately 25,000 square feet in size. The buildinqs are presently occupiec3 by tenants and are only about 6 years old. It is unclear whether any of the buildinqs would have to be taken for the street improvemant; but, certain2y the covered parkinq would have to be taken. This is an important feature of these properties and is critical to the occupancies. It seems self-evident that it would be a foolish waste of public money to condemn improved property tor the construction of a street designed to provide access bstween two low density industrial areas. Similarly, the street on the riqht oi the map, evidently an alternative to the State Street extension, would also involve a very substantial disruption of my client'� property and the tenants who occupy it. Althouqh the proposed access at the north end of the proposed street is not improved with a buildinq, it is the area in which there is also covered .i_.._ � .� _ _ � J, ./�✓ • . � � � . E;tHi3IT A Mr. Carlos Ortega Page 3 June 25,.1991 parkinq for the building occupyinq the corner lot. Your consideration of the foreqoinq as well as that of the city council would be very much appreciated. Very truly yours, LAW OFFICES OF LYNN D. CRANDALL � ; G' Ly� D randall _ LDC:jls 5885.11 � _. J J .. _ L L C `V .1 '.,J . � � � J ^ r1AYEA °�aT�w� � � , _ "_ ` _�'�Bl!ShE� N 9� aS �, a�B� GENCY ��_ ✓ E;(��i3;` A COACHELLA VALLEY WATER DISTRICT 24 POST OFFICE BOX 1058 • COACHELLA, CALIFORNIA 92238 • TELEPMONE �6�91 J98265t �iaEC'. �RS ,cc �cos 'EL_'S COOEKAS PQESIDENT TNOMAS E LEW GENERAL MANAGER CMiE� E'vG�hEE� 9AYMONO R RLMMONOS '��CE °RES'�DE"7'• BERNARDiNE SUT'CN SE�:.4E'sR� AMN W MCfAD�EW OWEN MCCOOK. A$$i57ANT CENERAL MANAGE� JORpTHY M 4iCMClS June 24 , 1991 REOWiNE AND Sh+ERRi�� q"T�RhE'S iNE00�RE : ��SM File: 1150.061 Carlos Ortega� Executive Director Palm Desert Redevelopment Agency 73-SIO Fred Waring Drive Palm Desert, California 92264 Dear Mr. Ortega: Subject: Palm Desert Redevelopment Project No. 3 The City of Palm Desert is proposing to form a redevelopment project area north of the Whitewater River Stormwater Channel on both sides of Cook Street. The Riverside County Auditor-Controller in its report dated January 2� 1991, indicated that the Coachella Valley Water District's percentage of the genaral purpose tax revenues from this project area is 6.94 percent. This revenue is used for stormwater and general district functions. These needs continue even with the improvements that the redevelopment agency will install. Therefore, while supportive of the goals of the agency for Project Area *Io. we believe that it is vital that we receive full pass through of our share the tax revenue or that the agency acquire the property for a satellite operating facility for us. As we discussed, the estimated cost of the land in excess of S3 million. Given our plans for the facility, the acquisition would need to be done soon or an agreement for the agency to reimburse the Coachella Valley Water District the costs would be necessary. 3, of is If you have any questions or need additional information, please contact me. Yours very truly, �/ � / ��iL��`i !'�� �� ��' � �vy Tom Levy l General Manager-Chief Engineer TEL:il/16 TRUE CONSERVATION USE WATER WISELY <_. .._ _ . ..-.� � � . . . IJ � � ,. �\_.✓�J.� � � ��-1 -1� . � WRITTEN RESPONSES OF THE CITY COUNCIL OF THE CITY OF PALM DESERT IN RESPONSE TO WRITTEN OBJECTIONS AND SUGGESTIONS OF AFFECTED PROPERTY OWNERS OR TAXING ENTITIES PREPARED PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTZON 33363 IN CONNECTION WITH THE PROPOSED REDEVELOPMENT PLAN FOR PROJECT AREA NO. 3 EXHIBIT B 910617 syc C299.RDN (0) �......�.��T�..`� `IJ• J-��. EXHIBIT "B" RESPONSE TO WRITTEN COMMENTS 1. Coachella Valley Recreation and Parks District. (Written comments dated June 26, 1991) The Coachella Valley Recreation and Parks District indicated their support for the Project Area in return for the Agency's commitment to early construction of the Recreation Gymnasium Community Center in the Palm Desert Civic Center pursuant to the lease agreement between the District and the Agency dated May 23, 1990. The letter further stated that in return for this commitment, the District was willing to forego any pass-through of tax increment from the Project Area. Response: Agency staff and the Coachella Valley Recreation and Parks District have been working together to facilitate an agreement that would equitably address any financial burden or detriment that may be imposed upon the Recreation and Parks District by the adoption of Project Area No. 3. The District is aware that the Redevelopment Plan for Project Area No. 3 includes a recreation center/park to serve the Project Area. Agency staff and the Parks and Recreation Districts continue to discuss these issues. Upon documentation of the financial impact and the benefit to be gained by the District through the eventual funding of the construcrion of the Recreation Center, an agreement will be drafted and presented to the Agency for their consideration. 2. Coachella Valley Water District. (Written correspondence dated June 24, 1991). Coachella Valley Water District's percentage of the general purpose tax revenues from the Project Area is 6.94, This revenue is used for storm water and general district functions. Their written correspondence states that in addition to the P.����,��«�m 1 ♦�._. �� . � �.. � _I�J • . .. . � _ E.�HI3IT "B" — 3. improvements the Agency may install in the Project Area, they continue the need for all revenue generated from the Project Area. Although they indicate support for the goals of the Recievelopment Agency for Project Area No. 3, they are requesting a full pass-through of their share of tar revenue from the Agency, or that the Agency acquire the property for a satellite operating facility for the Water District. It is specified that the cost for the land for such a facility would be in excess of �3 million. Given the Water District's plans for such a facility, they are requesting an agreement with the Agency to reimburse the Water District for the costs that would be necessary for such a facility. .• Response: Agency staff will continue to meet with the Coachella Valley Water District representatives in an attempt to confirm the existence of financial burden or detriment and to evaluate the cost benefit of providing funds for the faciliry outlined in their written correspondence. If the existence of financial detriment can be confirmed and quantified, a mutual acceptable agreement will be worked out and presented to the Agency for their approval. Law Oftices of Lindy Crandall, Attorney at Law, representing RK. Development and its Principals, Sam Russell and Frank Cohen, who are owners of industrial property tocated within the Cook Street Business Park. (Written correspondence dated June 25, 1991) R.K. Development does not oppose the establishment of the Project Area and they agree that various projects and public improvements might be appropriate for the area; however, they are concerned about the public hearing notice which identified potential property that may be acquired to provide additional access to Cook Street business properties. They are opposed to the proposed access identified on the public hearing notice and question the need and cost for such access. They also state that although traffic on Cook Street is a major "� , � ,prlmdit\ispcomm 2 ._.� �_ _� _ ��+ �.'� . _— _ i EY?-?I3IT "B" problem, traffic would not be lessened by the proposed access except for the traffic that had, as its destination, a location adjoining the industrial subdivision. Thev further state that it is unclear whether or not buildings they presently own which are occupied by tenants would be acquired to provide such access, but certainly that the covered parking which serves these buildings would have to be. They express the opinion that such acquisition would be a foolish waste of public money and that would also involve a substantial disruption of R.K. Development's property and tenants. Response: The Report to the City Council from the Redevelopment Agency on the Redevelopment Plan for Project Area No. 3(the "Report") clearly states that there is a need for additional access in this area and that congestion does occur between various industrial facilities that are located on the east side of Cook Street. The Redevelopment Ptan for Project Area No. 3 speci�es that provision of such access is one of the intended public improvement projects. Documentation provided in the Report clearly demonstrates the need for the construction of a roadway connecting businesses and industrial parks along the east side of Cook Street to eliminate back-to-back left turns and improve overall access. Additionally, further improvements in that area require construction of off-street parking areas to reduce on-street parking and alleviate traffic and circulation problems, a need to develop a staging area for truck drivers waiting to load and unload materials within the business park, and the need to develop a remote parking facility for employees that would allow patrons to park near the business facility. Although these specific projects have been identified as part of the Redevelopment Plan's public improvement list, the exact location of these improvements have not as yet been identified. The purpose of identifying potential areas to be acquired in the public hearing notices was to clearly divulge what, at the time, aQpeared to be the general palmdn � rsp�omm 3 ...�.�J.r _T..�.1 .I`� • �.�. � E�HI3IT "3" � � 4. location of the required access. However, as stated at the public hearing, precise location of such additional access has not specifically been identified. Further studies will be conducted regarding access and parking problems within the general vicinity of the Cook Street Business Park which will assist the Agency and the City in pinpointing where such access should be provided. Both the City and the Agency will provide to all property owners and businesses within the area adequate notice and an opportunity to discuss and provide input on where such access should be taken prior to making any decisions. Peters and Kovalsky, Attorneys at Law, representing the Mountainview Falls Homeowners and Vista Del Montanas Homeowners Association. (Written correspondence dated June 26, 1991) The law �irm of Peters and Kovalsky, representing the Mountainview Falls Homeowners and Vista Del Montanas Homeowners Associations, requests their removal from the Project Area. It is their belief that there is no justification for drawing Project Area No. 3's boundaries to include their few residential developments because they believe the Project Area is primarily commercial. They feel that including them would place an unreasonable burden on their properties and that they would not benefit from the Project Area. They expressed the opinion that if the Redevelopment Agency were to issue tax increment bonds and they were unable to repay these bonds, an assessment could be placed on their properties. They further cited the California Health and Safety Code's requirement that any written objection placed into the public hearing record be responded to in writing prior to the legislative body approving or disapproving the Redevelopment Plan. In addition to objecting to inclusion of their two residential developments, they express the opinion that they would not mind being included in Redevelopment Project Area No. 2, but do not give any reason for this ', palmdsc \ nptomm � "'1 J �:.J�.�:._ _ _��� .�v. : _— � : �YHI3IT "3" view. And finally they expressed the opinion that they are not being accorded due process under liSC Code Title 42 and 43 in the 14th Amendment to the United States. Response: Section A of the Report outlines and documents the reasons for selecting the Project Area boundaries. Section A documents that the Project Area consists of many different land uses and a variety of adverse conditions. In addition to residential, commercial and industrial structures that show signs of age and obsolescence and deterioration, there are specific residential developments that lack adequate access and are serviced by inadequate public infrastructure improvements and contain poorly laid out circulation systems. In the case of the Mountainview Falls and Vista Del Montanas developments, these projects maintain only one point of ingress and egress; and are therefore deficient in access. As documented in the traffic study of the Environmental Impact Report on the Redevelopment Plan, these residential developments will benefit from the traffic and circulation improvements which are being proposed as part of the Redevelopment Plan's public improvement projects. Additionally, the construction of the Cook Street bridge will improve the health and welfare of not only those residing within the Project Area, but the community at large. It is fair to say that construction of the bridge will benefit the residents of both developments. In regard to their comments purporting that the Agency may at some point in time assess their properties, the Redevelopment Agency cannot by law issue any kind of special assessment. The Redevelopment Agency does not have the power to tax property. The only revenue received by the Redevelopment Agency is taac increment revenue which is generated from the (normal) property ta�ces paid by property owners whose property is located within a project area. palmart\ rsprocom � . � 1 � � T � � `/ .1 J • � � � � J _ EXHIBIT "3" -- Tax increment is generated after a redevelopment pr�ject area is adopted. At the time of adoption, the County Assessor and Auditor-Controller add up the current assessed value of all the property located within a project area. The total figure is called the Base Year Vatue (the Base Year may change during the adoption depending on how long the adoption process takes). As propeny is improved or resold, the assessed value increases in accordance with the limitations established by Proposition 13. The property tax revenue generated by the increase in valuation (above the Base Year Value) is called tax increment revenue. The Ciry Council, in the adoption of the Resolution of which this document is an attachment, will comply with the requirements of CaIifornia Redevelopment Law by � � responding in writing to every objection that was submitied at the June 27, 1991 public hearing. These responses have been made available to the public prior to their consideration by the City Council. The comment that there is no legitimate reason to include these two residential developments in the Project Area is in error. The reasons for selecting and including the properties located within the Project Area have been documented in detai� within the Report. Specific reasons for the selection of the Project Area's boundaries are found in Section A. As to why these two developments should be included within Project Area No. 2, it was determined at the time the Project Area boundaries were selected that these developments should be included in Project Area No. 3 and, therefore, would not be considered for inclusion in Project Area No. 2. � f Pama�� �«am 6 .��_ �_��_�; '��. -3'; EXHIBIT "5" Finally, in response to the allegation that these two residential communities are not being accorded their due process under the laws of the United States, the consideration and adoption of the Redevelopment Plan for Project Area No. 3 has been conducted in accordance with the California Health and Safety Code and the laws and codes of the State of California and the United States of America. All property owners have been given due notice that this project is under consideration and afforded the privilege to attend meetings, provide citizen input and testify at the public hearing at which the Redevelopment Plan is being considered for adoption. 5. County of Riverside Administrative Of�ce. (Writren correspondence dated June 27 1941) Responses to the concerns raised by the Counry of Riverside (the "County") will be responded to by the categories outlined in the correspondence. a. General Comments The County indicates that it relies heavily on property tax revenue to finance operations of the County and that such services include health and welfare and criminal justice and that a ma}ority of these services are provided to City residents. They indicate that increasing costs associated with these programs are paid for by assessed valuations attributed to new development and that changes in ownership and the annual 2% increase allowable under law is required by the County to be able to fund the services. T'hey also indicate that increased demand for County services is generated by the City and must be met without the benefit of additional property taxes that are taken by redevelopment projects. The County stipulates that City redevelopment agencies must provide sufficient revenue via cooperative agreements to support existing services financed by the County. Additionally, the Counry Paman �. �sp�000m / ? _. .�. �i .J - _ _ � .. \ i �.J . � , ' � �- 0 EYNIBIT "3" questions the size and scope of the redevelopment projects for the Palm � Desert communiry. They assert that the current conditions within the City � � show no evidence of blight or need for urban renewal and that if the Redevelopment Plan is approved, the entire City of Palm Desert will be in a Project Area, and they do not believe this is the intent of the Community Redevelopment Law. Response: The majority of the area within Project Atea No. 3 was annexed to the City after development as unincorporated territory under County control. Many of the problems that currently exist within the Project Area were created by the lack of County oversight, regulation, and provision of adequate infrastructure. The Ciry, in annexing this area, assumed many costs associated with servicing this area that the County no longer has to provide. The Project Area, both in size and in assessed valuation, represents a miniscule portion of the County. The assessed valuation for the Project Area is a mere $152 million, whereas the assessed valuation for the entire County is $58 billion. It is hard to understand how inclusion of this area within a redevelopment project area representing only 2.5% of the total tax base of the County, can have a signi�cant financial impact on County services. Agency staff and County representatives have discussed the financial impacts and aspects of Project Area No. 3. To date the County has not provided adequate evidence of �nancial burden or detriment. It is expected, however, that if such evidence can be provided, the Agency would consider a cooperative agreement that would address such purported financial burden or detriment. palmCst'�rsptomm V .�;..,J_._�..��� ��J. �'�'_-.. _ EYHI3IT "3" T�he County's claim that impacts from other redevelopment agencies are in some way connected to the adoption of Project Area No. 3 is inappropriate and not a valid consideration in determining if Project Area I�1o. 3 places a financial burden or detriment on the County. Each project area within the County is adopted to address specific issues of blight, and each project area should be evaluated on its own financial aspects and impact to the Counry and other taxing agencies. The connection and impact of all of the project areas within the County is not a consideration and is not an issue that should be considered pursuant to California Redevelopment Law in the evaluation ' of fiscal detriment. Further, based on the analysis conducted during Project Area No. 3's adoption process, the Redevelopment Plan has been revised to reduce both the allowahle tax increment to be collected over the 40-year life of the Redevelopment Plan and the limit to bond a debt. This has been done in an attempt to limit whatever financial burden or detriment the Project Area may have on the County and other taxing agencies. The Project Area, as documented in the ReQort, is blighted and is in need of redevelopment and revitalization. Only through the use of tax increment revenues can the Redevelopment Plan be implemented and the conditions of blight which affect the health, safety, and welfare of the Project Area residents and the communiry at large be eliminated. Currently, the burden and detriment is upon the Project Area because of the adverse conditions now present. California Redevelopment Law does not limit the amount of territory a City may include in a redevelopment project area, therefore the County's remarks about the intent of California Redevelopment Law in regard to Palm Desert is irrelevant. P.,�����m 9 � �- •• �. • �•r �' _ 2� ..rJ'_.r _ _ ��.� _�-J. � — EYHIBIT -�" b. Validity of Redevelopment Plan The County has expressed its concerns regarding the validiry of the proposed Redevelopment Plan. However, these concerns are very general in nature and are, therefore, very difficult to respond with specificiry. However, the documentation provided in the Report regarding the Project Area meets the requirements of California Redevelopment Law in detailing the specific terms the adverse and blighting conditions present within the Project Area. 1) The County states that the Project Area is not predominantly urbanized as required by the California Redevelopment Law. Response: As documented in the Report Section B, the Redevelopment Project Area is considered urbanized. Although there are numerous vacant parcels scattered throughout the Project Area, these are located for the most part within developed residential, business or industrial areas. Other vacant parcels are surrounded on at least three and most times four sides by urbanized development. A survey of the Project Area conducted by the Agency's redevelopment consultantl in November and then again the day of the public hearing, confirmed that the Project Area is urbanized. Therefore, although vacant parcels do exist within the Project Area, they are an integral part of the developed Project Area and are gart of a greater surrounding urbanized area. 1. Rosenow Spevacek Group, Inc �P.�,����m 10 W v �.... _ T �,`� ` 1 J• � �� J� EXHI3IT "B" 2) The County has questioned the findings of blight and indicates that such findings cannot be supported by available evidence. Response: Within the Report Section B, it is documented that numerous conditions of blight exist within the Project Area. Among these conditions are age, obsolescence, deterioration, and dilapidation. On page B-b of the Report, many examples of these conditions are identified and documented by the survey conducted by the Agency's consultant. The Project Area also contains characteristics of defective design and character of physical construction which are enumerated in pages B-9 through B-10 of the Report. This documentation indicates that there are concentrations of parcels that exhibit such conditions within the industrial area west of Cook Street and along Joni and Vaile Drives. These identified conditions have resulted in impeded traf�ic flow and reduced ingress and egress for the business properties along Cook Street. Similar conditions throughout the Project Area created arterial and site circulation problems. Conditions of faulty interior anangement and exterior spacing have also been documented within the Project Area and in the Report on pages B-10 through B-11. These conditions include parcels which are characterized by excessive lot coverage, lack of off-street parking, and overall poor site planning. Conditions of inadequate provisions for light, ventilation, sanitation and recreation facilities are also present within the Project Area and are documented within the Report on pages B-11 through B-12. The Report indicates that this type of blight includes garages and other structures that have been converted to residences, overcrowding of structures and excess . P��������m 11 .�.�...�..._��..,r ,i-J. .1 � . 3) --- EXHIBI��',B" number of occupants which impact and have a deleterious effect on the entire residential neighborhood. An excessive number of cars are parked on the street in the front yard of residential areas which are littered with discarded items of junk. Deferred maintenance is present and visible. These conditions have resulted in a direct affect on properry values which have been noted in Table B-9 of the Report. Further, insufficient and inadequate public improvements are predominant within the Project Area. Such inadequate public improvements have been enumerated in the Report on pages B-12 through B-15. All of the conditions cited within the Report are further documented by Appendix C which presents a pictorial survey of the blighting conditions present within the Project Area. The area includes many parcels which are obviously not blighted and which are not necessary for effected development of the area. Response: The Report documents that blighted conditions within the Project Area are prevalent and are dispersed in a manner which has determined the Froject Area boundaries. As acknowledged by California Redevelopment Law, within any project area there may be individual properties that are considered non-blighted; however, California Redevelopment Law allows the inclusion of such properties for the effective redevelopment of the area. It has been documented through the Report that the Project Area is blighted and that all the properties within Project Area boundaries are appropriate for inclusion within the Project �4rea. 1 � � i L P�a.,�.���m 12 ,-, —- - -- a — �� — ----��:� :��. _ _ E<`{�-?IBIT "B" 4) That there is a lack of supporting evidence to make findings required by California Redevelopment Law regarding the impact on tax increment financing on taxing agencies which will derive property tax revenues from the Project Area. Response: It is inappropriate for the Counry to comment on the impact of the tax increment financing for Project Area No. 3 on other taxing entities. The County is not privileged to the discussions and negotiations between Agency staff and other taxing entities, nor do they have the information to evaluate whether or not these taxing agencies are suffering from financial burden or detriment. As provided in the Report, there is adequate supporting evidence for the City Council to make the findings required by the California Redevelopment I.aw Section 33361 that the effect of tax increment financing will not cause a significant financial burden or detriment on any taxing agency deriving revenue from the Project Area. 5) The Agency has not adequately demonstrated the need for pubiic participation or provided substantial evidence that private enterprise acting alone cannot eliminate the alleged blight in the Project Area. Response: The Agency has documented in the Report Section A, and in the Agency's response to the Fiscal Review Committee Report, that the need exists to redevelop the Project Area and that neither the City or private enterprise acting alone can eliminate blight within the Project Area. While it is the Agency's intent to utilize all of the funding mechanisms allowed under the R�development Plan and 13 �-.,. ..�.. " ' � .. `� _��J . � � � _ . � EXIiIBIT "B�� California Redevelopment Law, such funds and methods are inadequate, insignificant, and may be inappropriate to accomplish the redevelopment needs of the Project Area. In reviewing potential development and impact fees that could be generated by new development in the Project Area, it is evidenced in Exhibits A-1 and A-2 of the Report that such funds are inadequate to meet the funding needs required to revitalize the Project Area. Increasing development fees are not an option, as this would have a negative impact on property owners trying to improve conditions within the Project Area. Additionally, Federal and State grant programs may not be available to the City. These monies have signi�cantly declined and are available under certain restrictions that may or may not be met by many of the projects in the Project Area. The Ciry does not have the resources available to address the needs of the Project Area. The City's current budget situation is fairly strained in trying to meet the service needs of the City. Accordingly, the City had to reduce its 1991-92 budget by approximately $2 million. Techniques such as Mello-Roos, Community Facilities District, or Special Assessment Bonds, when available, may be appropriate for specific redevelopment projects. However, these require two-thirds voter approval and consideration must be given to the fact that taxes would be assessed to some property owners already suffering from economic hardship. Such assessments would produce an adverse economic result on the Project Area. Additionally, special taxes such as Measure A are only available for specific voter approved projects. The only project identified in the Redevelopment Plan that would qualify for such funding would be the Cook Street project. The Cook Street project is � � ,P����«am 14 :�E�v�"� _ =�:� '�0 . � �- 3� EYHI3IT "B" receiving Measure A funds, however, it is such a costly project that it will also include funding from Project Area No. 3. In conclusion, as it has been documented both in the Report, Sections A and M, and the Agency's response to the Fiscal Review Committee Report, that tax increment revenue provisions must be included in the Redevelopment Plan because other sources are not available, unreliabie, or insufficient to finance the cost of redeveloping the Project Area. Only through the use of tax increment financing can the Agency insure that the Project Area will be redeveloped. Private enterprise acting afone cannot and will not provide the financial ability to conect the adverse conditions present in the Project Area ar fund the public improvements necessary for its revitalization. 6) The County ctaims that the available evidence fails to support a finding that the Redevelopment Pian will promote the public peace, health, safety, and welfare as required by the Health and Safety Code. Response: As documented in Section A and Section B of the Report, adverse and blighting conditions within the Project Area create health, safery and welfare hazards. These conditions include deteriorated residential, industrial and commercial structures, the lack of proper infrastructure, the lack of an adequate sewer system, the lack of curbs, gutters and sidewalks and lack of adequate community facilities. Adverse traffic and circulation problems predominate the Project Area severely affecting the health and safety of those that utilize the roadways or walk within the Project Area. 'I'!�e physical blight which has been documented in Section B of the Report to Ciry p���,.��m 15 :\ \T `.T.'1 J ' � l r. �.=.JV�--_'�.� _��. c. ` E�HI3IT ,�3�� 7) Council and illustrated in Appendix C cites specific examples of such blight which cause unhealthy and adverse conditions which have resulted in structures and buildings which are unfit or unsafe to occupy that are conducive to ill health or the transmission of disease, contribute to infant mortality and juvenile delinquency and crime. The proposed Redevelopment Plan does not conform to the City's General Plan. Response: The Redevelopment Plan does conform to the City's General Plan. The land uses permitted in the Redevelopment Plan for Project Area No. 3 are the land uses pernutted by the City's General Plan as it exists today or shall be amended in the future. "I'he Redevelopment Plan has been reviewed by the Planning Commission of the City of Palm Desert and its report and recommendation found that it is in conformity with the City of Palm Desert's General Plan. Such documentation is provided in Section F of the Report. County's comments regarding compliance with California Environmentat Quality Act (CEQA) 1) The EIR does not adequately assess or provide for mitigation of the Plan's impact on the County. pa�mCa \ �spcorom 16 .......v-�_��^�`1 `IJ• �L�J EYHIBIT "3" Response: Impacts on County services are discussed in each section of the EIR where such impacts may occur such as police and fire protection services. 2) The EIR does not adequately distinguish between mitigation required by CEQA and the Community Redevelopment Law. Response: Mitigation measures are listed appropriate to the specific impact areas discussed. Specific mitigation (such as replacement housing) which are required by redevelopment law are so identified where appropriate (pgs. 82, 83 of FEIR). 3) The EIR does not identiPy how the County would provide increased services without the tax revenues generated by the Redevelopment Project. Response: With the exception of police services, significant environmental impacts with regard to County services are not expected. 'The Agency expects to mitigate any potentially significant impacts on police services through mitigation contained in the EIR. 4) The EIR is lacking in its consideration of all environmental impacts including population growth, housing, transportation, noise, recreation, biotogical, air quality and others. palmdit�,r�p�omm 17 .. _.1.. `ji� . -' - � ^. �.��_ _ _ __. 5) 6) ���iiI3IT "��� Response: The EIR addresses each of the listed issues, and identifies specific project impacts and mitigation measures for these effects. The following lists identifies the sections for each issue area listed above: Population Housing Transportation Noise Section 3.6 Recreation Biological Air Quality Section 3.11 Section 3.12 Section 3.13 Section 3.19 Sections 3.4 and 3.5 Section 3.2 The EIR does not adequately discuss the timing for implementation of the Plan. Response: The timing of development in the Project Area will depend on market forces and is not known at this time. The EIR assumes that development in the Project Area will occur gradually over the project life. The EIR does not adequately address the impact of compliance with the Plan's low and moderate income requirements. Response: Low and moderate income impacts and requirements are addressed on page 85 of the Final EIR. The low and moderate income housing fund and other programs that may be funded throughout the life of the plan are discussed in the Report. � P.����,���m 1 g �E�G:.:.':'=�`1 VJ. , _-�� EYHIBIT "3" 7) The EIR does not adequately consider the alternative of private enterprise acting alone to develop the Project Area. Response: Alternative 2 in the EIR considers the potential for development in the Project Area without the Redevelopment Plan. The feasibility of this alternative is discussed in the Report. 8) The EIR does not address migration into the area as a result of the Redevelopment Plan. Response: The EIR discusses the potential for rtugration into the area as a result of the Plan under Population Impacts, page 79 of the Final EIR. Because the potential immigration is not a significant part of expected regional growth and because it is anticipated under local and regional plans, the growth is not considered signi�icant. Furthermore, the environmental impacts of growth in the Project Area are discussed in each section of the EIR. 9) The mitigation monitoring plan outlined in the EIR is inadequate. Response: The Mitigation Monitoring Program has been submitted under separate cover. This monitoring program meets the requirements of Public Resources Code Section 21081.6. P.������m 19 ����':.---��� �:�. ?_-_. m E`Y:-II3IT "B" d. Adequacy of the City's General Plan: The Palm Desert General Plan does adequately describe policies, objectives, principles and standards. Although the original text was adopted in 1981, it has been updated and amended through subsequent adoption of four specific plans, two housing element revisions and over 20 minor amendments. The West Hills Specific Plan (1983), Palma Village Specific Plan (1985), Commercial Core Area Specific Plan (1987), and Housing Element (1984, 1989), provide detailed descriptions of existing conditions, development issues, objectives, policies and implementation programs. The specific plans cover 60°0 of the city and over 90°S of the developable vacant land. The Housing �lement has been approved by the State Department of Housing and Community Development, who determined it to be in compliance with housing element law. While some of the data contained in the original text is out of date, it was the best available at the time of adoption. Instead of incorporating revised data of dubious reliability, the city intends to update the entire text when accurate 1990 census data becomes available. �p.�`,���m 2O