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HomeMy WebLinkAboutMinutes - Citizens' Advisory Committee Project Area 4 07/18/2011I PALM DESERT REDEVELOPMENT AGENCY CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES JULY 18, 2011 I. CALL TO ORDER Chairman Benford convened the meeting at 3:00 p.m. II. ROLL CALL Present: Fred Benford, Chairman Terry Archer, Member Russ Campbell, Member Ron Crisp, Member Jane Daugherty, Member Phyllis Harkins, Member Absent: Roberta Grubb, Vice Chair Berit Reistad-Daly, Member Staff Present: Martfn Alvarez, Redevelopment Manager Lauri Aylaian, Director of Community Development Shawn Kilpatrick, Code Compliance Officer Justin McCarthy, ACM for Redevelopment Pedro Rodriguez, Senior Code Officer Veronica Tapia, Redevelopment Accountant `ci'4;Ic BY Ana Also Present: ON 0 - aq - ,� T I I Robert Spiegel, Mayor Pro Tern �' Jan Harnik, Councilmember VERIFIED ` Y__.LD&4Cy Roger Dash, Planning Commissioner Original on file 0.rith City 7 y Gierk s Office ORAL COMMUNICATIONS Chairman Benford suggested that the agenda be emailed to the Committee members' to reduce the amount of paper being used. Member Campbell also suggested if something could be added where they can click that they will be in attendance. CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES JULY 18, 2011 Member Harkins and the homeowners' association would like to thank Alana Townsend, Ryan Gayler, and Spencer Knight for the communication regarding the redoing of the corner of Kansas Street. IV. CONSENT CALENDAR A. APPROVAL OF THE MINUTES OF THE CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MEETING OF JUNE 20, 2011. Minutes of the meeting from June 20, 2011, were unanimously approved as submitted and carried by a 6-0 vote with Members Grubb and Reistad-Daly ABSENT. V. UNFINISHED BUSINESS None VI. NEW BUSINESS None VII. CONTINUED BUSINESS None Vill. OLD BUSINESS None IX. INFORMATIONAL ITEMS A. UPDATE ON PALM DESERT COUNTRY CLUB GOLF COURSE (Shawn Kilpatrick, Code Compliance Officer) Mr. Kilpatrick noted that since the last meeting, Wilshire Bank was put on notice. He presented pictures of the current conditions of the golf course. Chairman Benford inquired if the Executive course is being watered. Mr. Kilpatrick replied everything is but seems that the fourth is the driest. It's not perfect but an improvement. G:\rda\Monica 0'Rei11y\Word\PA No. 4\Minutes\2011\Minutes 7-18-11.docx 2 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES J U LY 18, 2011 Chairman Benford asked if there are buyers interested in the golf course. Mr. McCarthy responded that there are people actively looking at the property. Ms. Aylaian interjected that she actually met with four different parties. There seems to be some interest and they are doing their homework. Chairman Benford wondered if the activity on the golf course is due to the interested buyers or from the notice that was given to them. Mr. Kilpatrick responded that it is probably a combination of both. B. UPDATE ON THE REDEVELOPMENT AGENCY LEGISLATION BILLS (Veronica Tapia, Redevelopment Accountant) Mr. McCarthy stated that the next item is an update and a briefing on the implications of the State of California latest budget. There were two bills approved as part of the budget: AB 26 The dissolution of all redevelopment agencies in California; and AB 27 Referred to as the Ransom Act, which is if you pay a certain amount of money you can keep your redevelopment agency. With that said, Mr. McCarthy turned it over to Ms. Tapia. Ms. Tapia presented and summarized the two bills to the Committee. Chairman Benford asked if the Palm Desert Country Club Undergrounding Project would be cut if the Agency is dissolved. Mr. McCarthy replied yes. Chairman Benford inquired if the State receives redevelopment funds and the City has to return it back. Mr. McCarthy explained that the State does not give the Redevelopment Agency funds. Redevelopment funds are local property taxes. He commented that in essence this is a State raid on local revenues. Chairman Benford asked if this is going to put the City in a bind. Mr. McCarthy responded that it would be a bump to the City. There are a number of projects Citywide in the next 10 years that would probably not be done. Member Archer asked if all redevelopment agencies have to choose the same avenue, some could choose 26 and some could choose 27. Ms. Tapia responded that it would be one or the other. She noted that there will be some cities that do not have the choice to do 27 because they are not financially stable as our Agency. GArda\Monica O'Reilly\Word\PA No. 4\Minutes\2011\Minutes 7-18-11.docx 3 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES JULY 18, 2011 Member Archer stated that funding comes from local property taxes. He asked how much a year comes in for the Agency. Mr. McCarthy responded that currently it is about $80 million a year. Of that amount, 20 percent goes to housing, which is $16 million a year. Then $34 million passes through the Agency, and goes to other taxing agencies, e.g., school districts. He stated that in a net basis, the Agency is probably $45 to $46 million. Member Archer asked if the Agency were to choose AB 26, would the tax revenue not be charged to the residents anymore. Mr. McCarthy replied no. He stated that Redevelopment does not engender an increase in any kind of taxes. It is a sharing of the existing property tax base that everybody already pays. It would just be a reallocation of where that money flows. Member Campbell inquired for how long the Agency would have to pay. Mr. McCarthy responded that it would be in perpetuity. Member Harkins asked if the California Villas are owned by the City Housing Agency. Ms. Tapia responded that they are owned by the Redevelopment Agency. Member Harkins asked if AB 26 was the direction that the City took, would that project be sold or given to the County or State housing agency. Mr. McCarthy answered that it would be unlikely. The initial action would probably be to transfer to the City's Housing Authority. He noted that with AB 26, you do not receive the Housing Set -Aside funds that you were receiving. Housing would need to be able to operate that facility on its net operating income. Member Harkins inquired where Carlos Ortega Villas stands. Mr. McCarthy responded that since the Agency has a contract with the architectural firm, the Agency is moving forward with the design; however, the Agency would be precluded from issuing a construction contract at this time. Another option is to let a housing developer know that there is this project, and say it is ready to go and entitled but they would need to find a way to finance it. Member Harkins asked about the fire station. Mr. McCarthy replied that with AB 26, there is no known source other than the General Fund to pay for that fire station. Member Harkins asked if it would also apply to the refurbishment of Casey's Restaurant. Mr. McCarthy replied that Casey's is in limbo. GArda\Monica O'RetllyWordTA No. 4Wnutes\2011\Minutes 7-18-11.docx 4 CITIZENS' ADVISORY COMMITTEE FOR PROJECT AREA NO. 4 MINUTES J U LY 18, 2011 Member Crisp inquired if the City Council would be discussing this issue at the August 25 meeting. Ms. Tapia responded that is what they are looking at right now. X. REPORTS AND REMARKS A. COMMITTEE CHAIRPERSON/MEMBERS B. AGENCY BOARD LIAISONS C. PLANNING COMMISSION LIAISON D. STAFF Mr. McCarthy and staff recommended that the Project Area No. 4 Committee go dark for the month of August. The Committee unanimously motioned to go dark for the month of August. XI. ADJOURNMENT Upon a unanimous motion by the Project Area No. 4 Committee, the meeting was adjourned at 3:45 p.m. Monica O'Reilly, Recording Secr ry G:\rda\Monica O'Reilly\Word\PA No. 4\Minutes\2011\Wnutes 7-18-1I.docx 5