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HomeMy WebLinkAbout5/19/2004 - STAFF REPORTS DATE: ib AYt—, 20047 VO W0 C. Q� f ti 1f cc rS 1� . TO: CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT JOINT PUBLIC HEARING ON PROPOSED AMENDMENT TO MERGED REDEVELOPMENT PLAN FOR MERGED REDEVELOPMENT PROJECT NO. 2 TO REINSTATE COMMUNITY REDEVELOPMENT AGENCY'S EMINENT DOMAIN AUTHORITY TO ACQUIRE NONRESIDENTIAL PROPERTIES IN THE TAHQUITZ- ANDREAS CONSTITUENT AREA RECOMMENDATION: Staff recommends that the City Council of the City of Palm Springs ("City Council") and the Community Redevelopment Agency of the City of Palm Springs ("Agency') conduct a joint public hearing to present and receive public testimony on the proposed Amendment to the Merged Redevelopment Plan for Merged Redevelopment Project No. 2("Amendment")to reinstate eminent domain authority for nonresidential properties in the Tahquitz-Andreas Constituent Area. SUMMARY: This Amendment to the Merged Redevelopment Plan for Merged Redevelopment Project No. 2 would reestablish and extend the Agency's eminent domain authority on certain property in the Tahquitz-Andreas Constituent Area. The Agency's authority to use eminent domain to acquire property in this Area expired on July 19, 1995. If adopted, the Amendment would extend the Agency's authority to use eminent domain (i.e. condemnation authority) to acquire nonresidential property within the Tahquitz-Andreas Constituent Area for twelve(12)years from the date of adoption of the Amendment. At the joint public hearing, staff will present the Amendment and the Negative Declaration related thereto, and the public may then testify to the Amendment. Following a formal response to any written objections to the Amendment, consideration of the Amendment and other actions would resume at a joint City Council/Agency meeting on May 19, 2004. On April 21, 2004 the Agency approved and transmitted its Report to the City Council describing the reasons for the proposed Amendment, examples of the blighting conditions that persist in the Tahquitz-Andreas Area and the PAC's recommendation on the proposed Amendment. BACKGROUND: When originally adopted in 1983, the Tahquitz-Andreas Redevelopment Plan permitted the use of eminent domain (i.e. condemnation authority) to acquire property within the Tahquitz-Andreas Redevelopment Project Area ("Tahquitz- Andreas Area"). With the exception of property owned bythe Agua Caliente Band of Cahuilla Indians or allottees, all properties within the Tahquitz-Andreas Area were subject to potential acquisition through condemnation for redevelopment purposes. The California Community Redevelopment Law("Redevelopment Law")establishes a 12-year time limit on the commencement of eminent domain from the date of adoption of the redevelopment plan, though this time limit may be extended by an amendment to the plan. On July 19, 1995, eminent domain authority expired in the Tahquitz-Andreas Area. Subsequently, the City Council merged the Tahquitz-Andreas, Baristo-Farrell, and Canyon Redevelopment Plans in May 2000 and formed Merged Redevelopment Redevelopment ge ( rI .4( . Project No. 2. In February 2003, the City Council reestablished eminent domain authority in the Baristo-Farrell and Canyon constituent areas, subject to certain limitations. Currently, among all of the Agency's ten constituent areas in Merged Project No. 1 and Merged Project No. 2, only the Tahquitz-Andreas Area does not have authority to acquire property through eminent domain. In 2002, the Agency proposed an Amendment to the Merged Redevelopment Plan for Merged Project No. 2 to reestablish the authority to use eminent domain within the Tahquitz-Andreas Area. Initially, staff proposed the possibility of allowing the use of eminent domain for both residential and nonresidential property, to provide the Agency greater flexibility in acquiring property for future redevelopment. Pursuant to Redevelopment Law, the City Council called for formation of the Tahquitz-Andreas Project Area Committee,representing property owners, residents, business owners and community organizations in the Tahquitz-Andreas Area, to consider and make a report and recommendation on the proposed Amendment. The Project Area Committee("PAC")was formed by an election process required by Redevelopment Law and prescribed by the City Council's July 2002 Procedure for Formation and Election of a Project Area Committee as adopted by City Council Resolution No. 20424. Notices were mailed to over 1,100 property owners, residents and business owners in July 2003 notifying them of the August 5, 2003 public information meeting to discuss the proposed Amendment and the opportunity for citizens to serve on the PAC. Beginning in December 2003, the PAC met to learn about redevelopment, the history of the Tahquitz-Andreas area,the need foreminent domain authority,and to review the proposed Amendment. All meetings were open to the general public, and noticed in accordance with the Brown Act. The PAC voted unanimously (5-0) on February 9, 2004 to recommend the reinstatement of eminent domain authority within the Tahquitz-Andreas Area provided that residential properties were excluded. The Tahquitz-Andreas Area is fully contained within Section 14, and after consideration of the PAC's recommendation and concurrent input from Tribal representatives who did not foresee the use of residential eminent domain authority as critical to their Section 14 development plans, Agency staff modified the proposed Amendment to be consistent with the PAC's recommendation. As now proposed,the Agency's authorityto use eminent domain within the Tahquitz- Andreas Area would be subject to the following limitations: 1. Eminent domain may not be used to acquire a property legally devoted to a residential use. A parcel is devoted to a residential use if a residential structure has been legally constructed on such parcel,and such structure continues to be legally occupiable for a residence; and 2. Eminent domain may not be used to acquire any parcels or interests in lands held in Trust by the United States for any individual Indian or for the Aqua Caliente Band itself. However, the power of eminent domain may be used to acquire a leasehold or other interest from the lessee or holder (but not the fee interest of the allottee) which is on land held in Trust by the United States, but only with the written consent of the Tribal Council of the Agua Caliente Band; and 3. Eminent domain may not be used to acquire property owned by a public body without the consent of that public body. These limitations are identical to those applicable to the other nine constituent areas of Merged Project No. 1 and Merged Project No. 2 for which eminent domain authority was extended by the City Council in February 2003. Redevelopment Law also requires the Agency to conduct a noticed public hearing to inform the public of the amendment, the process to be followed by the Agency/City Council, and to receive public testimony. Notice of the hearing, along with an introductory letter from the Director of Community& Economic Development, was mailed via first class on March 31, 2004 to all property owners, residential tenants, and business tenants located within Merged Project No. 2. Over 2,900 notices were mailed. Also, as required by Redevelopment Law, affected taxing agencies were mailed a copy of the notice on March 31, 2004, Additionally, the notice was published in The Desert Sun, on April 10, 17, and 24. If the proposed Amendment were adopted subsequent to the City Council and Agency Joint Public Hearing on May 5, 2004,the Agencywould have the authorityto use eminent domain to acquire nonresidential properties within the Tahquitz-Andreas Area for a 12-year period. While the Agency has no plans at this time to use eminent domain to acquire property in the Tahquitz-Andreas Area, this is a tool that may be needed in the future to carry out redevelopment goals and objectives. On April 19, 2004, staff and the Agency's redevelopment consultant hosted an informational meeting with the public at City Hall to provide affected residents, businesses and property owners an opportunity to receive a presentation on the amendment and to ask questions. Notification of this meeting was included in the March 31 st mailing to all property owners, residential tenants, and business tenants located within Merged Project No. 2. Five individuals attended the informational meeting. Prior to the meeting, staff responded to approximately ten telephone inquiries on the subject. On April 21,2004 the Agency approved and transmitted its Report to the City Council which contained the reasons forthe proposed Amendment,examples of the blighting conditions that persist in the Tahquitz-Andreas Area and the PAC's recommendation on the proposed Amendment. On May 5,2004,the City Council and Agencyjointly will conduct a public hearing on the Amendment. Staff will provide a brief presentation and discussion of the proposed Amendment, the Negative Declaration, and other pertinent information. Staff will also report on the Planning Commission's April 28t consideration of the Amendment and Negative Declaration. After this presentation, the public will be given the opportunity to submit oral or written comments to the Amendment. If anywritten objections to the Amendment are received,the public testimony portion of the joint public hearing may be closed and Agency staff must then prepare written responses to written objections, as required by Redevelopment Law. These responses would then be presented at the May 19, 2004 meeting, entered into the record and adopted by City Council resolution. Following approval of responses to any written objections and the Negative Declaration, the City Council would then consider adoption of the amending ordinance. A copy of the proposed ordinance reestablishing eminent domain is attached to this staff report JO N S. YMO D Dir&ctoKof Commu ey& Economic Development wy3 C I'� 'CIS. APPROVEDv ��—'��-t—✓'/ Executive Director Merged Redevelopment Project Area No. 2 1. Tahquitz-Andreas Constituent Area 2. Baristo-Farrell TAHQUITZ-ANDREASCONSTITUENT AREA 3. Canyon ALEJO RD y0 _ J J ❑ a � U AMADO RD _ a .._ _..�=_-----__._.,_� Q ANDREAS RD J .._ ..., 4- T TAHQUITZ CANYON PACQUET CLUa .. . ❑ ..:. �...t...:' ARENAS RD } _ VISTA CHINO U w° -- ' SATURNINORD z 7 W, 4 q` z "--..V!- .,,.. RAMON RD ROAD t1i y � V � � AMENDMENT TO THE REDEVELOPMENT PLAN FOR MERGED REDEVELOPMENT PROJECT NO. 2 (TAHQUITZ-ANDREAS EMINENT DOMAIN EXTENSION) The Amended and Restated Redevelopment Plan for Merged Redevelopment Project No. 2, previously amended on February 19, 2003 by Ordinance 1624 ("Plan"), is hereby further amended as follows: Section 502 and 503 of the Plan are hereby amended to read as follows: (502) PropertyAcquisifion 1. (503) Acquisition of Real Property The Agency may acquire real property by any means authorized by law, including by purchase, lease, obtain option upon,acquire bygift, grant, bequest, devise, exchange, cooperative negotiations, or eminent domain subject to the The-following limitations-shaH-a^ram y o-tha geney's eminent domain-aatherity IFl E Rrojeet Area: a. Eminent domain may be used to acquire any real property in the Baristo-Farrell and Canyon Constituent Areas,except for properties legally devoted to a residential use. A parcel is devoted to a residential use if a residential structure has been legally constructed on such parcel, and such structure continues to be legally occupiable for a Residence. Except as otherwise provided by law, no eminent domain proceeding to acquire property within the Baristo-Farrell and Canyon Constituent Areas shall be commenced after February 19, 2015 (twelve(12)years following the date of adoption of this amended and restated Plan by Ordinance No. 1624). b. Eminent domain may not he used+...-aquany real p " . the Tah. itz A..,+.,,.,.. GG—Rcstitllent A•eaEminent domain may be used to acquire any real property in the Tahquitz Andreas Constituent Area except for properties legally devoted to a residential use. A parcel is devoted to a residential use if a residential structure has been legally constructed on such parcel and such structure continues to be legally occupiable for a Residence. Except as otherwise provided by law, no eminent domain proceeding to acquire Property within the Tahquitz Andreas Constituent Area shall be commenced after 1 2016 (twelve (12)years following the date of adoption of the amendment to this amended and restated Plan by Ordinance No. ) c. The power of eminent domain may not be used to acquire any parcels or interests in lands held in Trust by the United States for any individual Indian orforthe Aqua Caliente Band itself. However, the power of eminent domain may be used to acquire a leasehold or other interest from the lessee or holder(but not the fee interest of the allottee)which is on land held in Trust by the United States, but only with the written consent of the Tribal Council of the Agua Caliente Band. er6Z - �-s d. Eminent domain may not be used to acquire property owned by a public body without the consent of that public body. e. To the extent required by law, the Agency shall not acquire real property on which an existing building is to be continued on its present site and in its present form and use without the consent of the owner, unless: (1) such building requires structural alteration, improvement, modernization or rehabilitation; or (2) the site or lot on which the building is situated requires modification in size, shape or use; or (3) it is necessary to impose upon such property any of the standards, restrictions and controls of this Plan and the owner fails or refuses to participate in the Plan pursuant to Sections 506 through 509 of this Plan and applicable provisions of the Redevelopment Law. f. Exeept as otherwise pFevided by law, no eminent de PFOeeeding te acquire property within the PFE)ject Area s be e rnrnenGed after twelve (12) years fallowing the .date of adoption of this amended and restated Plan by OFd'Ranee amendment of this Plan 277 E. Alejo Road, #106 h APR 2 6 2004 Palm Springs, CA 92262 Rcc����o And �'�-C� �'� 219 West 1 st Avenue Denver, CO 80223 April 19, 2004 City Clerk City of Palm. Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 RE: Proposed Second Amendment to Merged Redevelopment Plan for Merged Redevelopment Project Nwnber 2 Dear Madam: The City of Palm Springs used Eminent Domain to run out the Negroes in Section 14 in the 1960's. With the subject proposal, the City of Palm Springs will now be able to run out the Gay and Lesbian businesses in Section 14, namely those businesses on the north side of Arenas Road between Indian Canyon Drive and Encilia Street. Hasn't the City of Palm Springs been shamed enough? Eminent Domain is a tool for the sole use of Corrupt Politicians. This proposal should not be approved. Sincerely, S. Calvin Riley ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE MERGED REDEVELOPMENT PLAN FOR MERGED REDEVELOPMENT PROJECT NO. 2 (TAHQUITZ- ANDREAS EMINENT DOMAIN AMENDMENT) WHEREAS, the Redevelopment Plan for the Tahquitz-Andreas Constituent Area was amended by Ordinance 1583 adopted on May 31, 2000 resulting in the Merged Redevelopment Plan ("Plan")for Merged Redevelopment Project No. 2 ("Project Area"); and WHEREAS,the Community Redevelopment Agency of the City of Palm Springs("Agency') has and continues to conduct redevelopment activities in the Project Area, pursuant to Community Redevelopment Law, Health & Safety Code Section 33000, et seq. ("Community Redevelopment Law"); and WHEREAS, this Ordinance amends the Merged Redevelopment Plan for the Project to reestablish the ability to use eminent domain to acquire certain property within the Tahquitz-Andreas Constituent Area("Tahquitz-Andreas Area"),except for properties legally devoted to a residential use; and WHEREAS, after providing notice in accordance with all applicable laws,the City Council of the City of Palms Springs ("City Council")and the Agency held a joint public hearing on May 5, 2004 ("Public Hearing") to consider the adoption of this Ordinance and prepared and made available to the public all the reports and information required by Section 33349 of the Community Redevelopment Law prior to the Public Hearing; and WHEREAS,at the Public Hearing,the City Council and the Agency received oral testimony from all persons wishing to be heard, and in addition incorporated into the record of the Public Hearing the following documents, each of which is incorporated by reference into this Ordinance as though set forth fully herein, as are the minutes of the Public Hearing: 1. The affidavit of publication of Notice of the Public Hearing; 2. The certificate of mailing of Notice of Public Hearing to each business owner, property owner and resident in the Project Area to persons, and to firms or corporations which have acquired property within the Project Area; 3. The certificate of mailing of Notice of Public Hearing to the governing bodies of each taxing agency within the Project Area; 4. The Agency's Report to the City Council dated April 21, 2004; 5. The Negative Declaration; 6. The proposed Amendment to the Redevelopment Plan for the Project Area; and 7. Public communications concerning the Amendment; and WHEREAS, the adoption of this Ordinance is in compliance with the requirements of the California Environmental Quality Act, Public Recourse Code, Section 21000, et seq.; NOW THEREFORE, pursuant to Section 33457.1 of the Community Redevelopment Law, which indicates that this Ordinance must contain the findings required by Section 33367 of C a the Community Redevelopment Law Code,to the extent warranted,the City Council makes the following findings: 1) It has been determined previously the Tahquitz-Andreas Constituent Area is blighted and that the redevelopment of said Area is necessary to effectuate the public purposes of Community Redevelopment Law, such conditions continue to exist in the Area. This finding is based upon the following conditions which characterize the Project Area: a. The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development. b. Several obsolete commercial buildings with limited onsite parking and small infill lots have remained undeveloped for decades. c. Assembly of multiple parcels to create economically developable lots is difficult due to small lot sizes and the diverse ownership patterns. d. A lack of proper utilization of property, resulting in a stagnant and unproductive condition of land potentially useful and valuable. It is further found and determined that such conditions are causing and will increasingly cause a reduction and lack of proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the City, which cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone requiring redevelopment in the interest of the health, safety and general welfare of the people of the City and the State. This finding is based on the fact that governmental action available to the City without redevelopment would be insufficient to cause any significant correction of the blighting conditions, and that the nature and costs of the public improvements and facilities required to correct the blighting conditions are beyond the capacity of the City and cannot be undertaken or borne by private enterprise,acting alone or in concert with available governmental action. 2) The Amendment, as described above,will permit the continuation of redevelopment in the area in conformitywith Community Redevelopment Law,and is in the interests of the public peace, health, safety and welfare by aiding in the elimination and correction of the conditions of blight, providing for planning, development, redesign, clearance, reconstruction or rehabilitation of properties which need improvement, and providing for higher economic utilization of potentially useful land. 3) The adoption and carrying out of the Amendment is economically sound and feasible as no public redevelopment activity will be undertaken unless the Agency can demonstrate that it has adequate revenue to finance the activity and the Agency's Report to City Council pursuant to Section 33352 of the Community Redevelopment Law, further demonstrates the economic soundness and feasibility of the Plan. 4) The Amendment conforms to the General Plan of the City of Palm Springs, including, but not limited to, the City's Housing Element, which substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This finding is based upon the Planning Commission's original findings that the constituent redevelopment plans conform to the General Plan for the City of Palm Springs. 5) The carrying out of the Amendment will continue to promote the public peace, health, safety and welfare of the City, and will continue to effectuate the purposes and policy of Community Redevelopment Law by correcting conditions of blight and by coordinating public and private actions to stimulate development and improve the economic, social and physical conditions of the Tahquitz-Andreas Constituent Area. 6) Eminent Domain, as provided in the Amendment, is necessary to the execution of the Plan with respect to the Tahquitz-Andreas Constituent Area to ensure that the provisions of the Plan will be carried out and to prevent the recurrence of blight,and adequate provisions have been made for the payment for propertyto be acquired as provided by law. 7) The Agency has a feasible method and plan for the relocation of families and persons who might be displaced,temporarily or permanently,from housing facilities in the Tahquitz-Andreas Constituent Area as the Merged Redevelopment Plan for Merged Project Area No. 2 provides for relocation assistance according to State law. S) There are, or will be provided,within the Tahquitz-Andreas Constituent Area or other areas not generally less desirable in regard to public utilities and public and commercial facilities and at rents or prices within the financial means of the families and persons who might be displaced from the Area, decent, safe and sanitary dwellings equal in number to the number of and available to such displaced families and persons and reasonably accessible to their places of employment and no person or family will be required to move from any dwelling unit until suitable replacement housing is available. 9) Families and persons shall not be displaced prior to the adoption of a relocation plan pursuant to Sections 33411 and 33411.1 of the Community Redevelopment Law, and dwelling units housing persons and families of low or moderate income shall not be removed or destroyed prior to the adoption of a replacement housing plan pursuant to Sections 33334.5, 33413 and 33413.5 of said Law. This finding is based upon the fact that the Amendment does not contemplate the imminent relocation of any households or businesses to accomplish its goals, a comprehensive and detailed relocation plan will be developed when relocation is imminent, and relocation of displaced persons, families and businesses within the Tahquitz- Andreas Constituent Area will be accomplished in full compliance with State guidelines as they currently exist or as they may be amended from time to time. 10)It has been determined previously that the inclusion of any lands, building, or improvements which are not detrimental to the public health, safety, or welfare is necessary for the effective redevelopment of the area of which they are a part, and that all areas included are necessary for effective redevelopment and are not included for the purpose of obtaining the allocation of tax increment revenues from such areas pursuant to Section 33670 of the Community Redevelopment Law without substantial justification for their inclusion;such determination continues to be correct in the Tahquitz-Andreas Constituent Area. This finding is based upon the fact that the boundaries of the Area were chosen to include lands that were underutilized because of blighting influences,or affected by the existence of blighting influences,and land uses significantly contributing to the conditions of blight,whose inclusion is necessary to accomplish the objectives and benefits of the Plan. 11)The elimination of blight and the redevelopment of the Tahquitz-Andreas Constituent Area could not reasonably be expected to be accomplished by private enterprise acting alone without the aid and assistance of the Agency. This finding is based upon the existence of blighting influences, including the inability of individual developers to economically remove these blighting influences without substantial public assistance in providing adequate public improvements and facilities, and the inadequacy of other governmental programs and financing mechanisms to eliminate the blight including the provision of necessary public improvements and facilities. Cra 'a - G •3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES FURTHER ORDAIN AS FOLLOWS: Section 1: The City Council finds that all the facts and conclusions as set forth above in this Ordinance are true and correct. Section 2:Any and all written and oral objections filed with or presented to the City Council in regard to the adoption of this Ordinance are hereby overruled. The written responses to those written objections are hereby adopted by the City Council, which responses are incorporated by reference as though set forth fully herein. Section 3: The City Council hereby approves and adopts the Amendment to the Merged Redevelopment Plan for Merged Redevelopment Project No.2, Tahquitz-Andreas Eminent Domain Time Limit Extension, as on file with the City Clerk, which is incorporated by reference as though set forth fully herein. Section 4: If any section, subsection,sentence, clause, phrase,or portion of this Ordinance or the application thereof to any person,firm, corporation,or circumstance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the remaining portions thereof. The City Council of the City of Palm Springs hereby declares that it would have adopted the Ordinance and each section, subsections, sentences, clauses, phrases, or portion thereof, irrespective of the fact that any one or more section, subsection, sentence, clause, phrase, or portions be declared invalid our unconstitutional. Section 5: The City Clerk is hereby directed to transmit a copy of this Ordinance to the Agency, which shall be responsible for carrying out the Amendment. Section 6: This Ordinance shall be in full force and effect thirty(30) days after passage. Section 7: The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or summary thereof, or a display advertisement, duly prepared according to law, to be published in accordance with law. ADOPTED this day of 2004. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk Mayor REVIEWED &APPROVED