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HomeMy WebLinkAbout12/8/1999 - STAFF REPORTS PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY PROJECT AREA CONSOLIDATION Proposal Summary On July 21, 1999 and again on September 15, 1999, Agency staff recommended to the City Council that they, acting as the legislative body with the statutory authority to amend Redevelopment Plans, adopt an ordinance consolidating all of the Palm Springs Community Redevelopment Agency's projects,ten(10)in all,into a single project called the"Merged Redevelopment Project." Stafl's presentation on the consolidation highlighted a number of advantages: 1. From an administrative point of view,Finance Department staff can account for all 10 project areas in three(3)funds, rather than in the current thirty(30)funds. The Agency then only needs to file one statement of indebtedness and a greatly simplified State Controller's Report. 2. Second, merging the projects would eliminate the need to transfer money between projects. Though the tax increment within a subarea may rise or fall, the larger aggregated area would be more stable financially. This will also strengthen the credit rating of the Agency. 3. A merger would give the Agency much more flexibility in determining priorities in capital projects, since the capital project funds will be pooled in one fund for use in any of the respective subareas. 4. At the Agency's discretion, some of the Agency's non-performing loans could begin to be brought current. Even after the merger of the redevelopment projects,Riverside County will continue to administer the projects separately. That is, each subarea of the merged project will keep its existing base year value and increment will continue to be calculated separately and remitted to the Agency just as it always has. Likewise, the respective pass through agreements with other taxing agencies will continue to be calculated as they have always been. Therefore,the merger shall not affect the amount of pass throughs(taxes)collected by any other taxing agency, nor will it have any effect on the amount of property tax paid by any property owner. The primary purpose of merging the project areas is for financial and reporting reasons; no other changes to the project areas are proposed. In other words, no additional land is being added to the project areas, nor are any current boundaries changing. The merger will also combine the total tax increment limits into one. The overall concept of project area mergers is a very positive development, since it increases the flexibility in the use of capital project funds while reducing the reporting and administrative burden. In addition, it leaves the Agency in a stronger financial position to respond to future redevelopment projects in any project area, irrespective of their current cash position. Finally, it leaves the underlying project areas(and resulting pass throughs) intact, so it does not affect any other taxing agencies. Al 1k Community Redevelopment Agency Project Area Descriptions The Central Business District Redevelopment Project (150 acres) was established on July 11, 1973 by Ordinance No. 959 (the"Central Business District Project") and amended by Ordinance No. 1276 on November 11, 1986 and Ordinance No. 1497 on December 21, 1994. The Tahquitz-Andreas Redevelopment Project (164 acres) was established on July 19, 1983 by Ordinance No. 1187 (the"Tahquitz-Andreas Project") and amended by Ordinance No. 1489 on December 21, 1994. The Ramon-Bogie Project (440 acres) was established on November 30, 1983 by Ordinance No. 1202 (the"Ramon-Bogie Project") and amended by Ordinance No. 1490 on December 21, 1994. The South Palm Canyon Redevelopment Project (17 acres) was established on November 30, 1983 by Ordinance No. 1203 (the "South Palm Canyon Project") and amended by Ordinance No. 1494 on December 21, 1994. The Oasis Redevelopment Project (4 acres) was established on July 10, 1984 by Ordinance No. 1224 (the "Oasis Project") and amended by Ordinance No. 1495 on December 21, 1994. The North Palm Canyon Redevelopment Project (324 acres) was established on September 19, 1984 by Ordinance No.1227 (the"North Palm Canyon Project") and amended by Ordinance No. 1498 on December 21, 1994. The Highland-Gateway Redevelopment Project (114 acres)was established on November 20, 1984 by Ordinance No. 1231 (the"Highland-Gateway Project") and amended by Ordinance No. 1491 on December 21, 1994. The Baristo-Farrell Redevelopment Project (483 acres) was established on May 7, 1986 by Ordinance No. 1264 (the`Baristo-Farrell Project") and amended by Ordinance No. 1493 on December 21, 1994. The Redevelopment Project Area No. 9 (737 acres) was established on December 29, 1988 by Ordinance No. 1321 ("Project No. 9") and amended by Ordinance No. 1496 on December 21, 1994. The Canyon Redevelopment Project (746 acres) was established on July 19, 1991 by Ordinance No. 1388 (the"Canyon Project") and amended by Ordinance No.1492 on December 21, 1994.