CITY OF BURBANK COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM. Michael S. Flad, City Manager/Executive Director
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1 CITY OF BURBANK COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM DATE: April 26, 2011 TO: Michael S. Flad, City Manager/Executive Director FROM: Greg Herrmann, Community Development Director/Asst. Executive Director Ruth Davidson-Guerra, Asst. Community Development Director for Housing and Redevelopment BY: Maribel Leyland, Deputy Housing and Redevelopment Manager SUBJECT: PROPOSED LUNDIGAN COMMUNITY CENTER PURPOSE The purpose of this report is to provide information for holding a joint public hearing among the City Council, Redevelopment Agency Board, and Youth Endowment Services Board to consider the proposed Lundigan Community Center. As part of the actions to be considered, the Agency proposes to fund the cost of the construction of a publiclyowned building with Youth Endowment Services (YES) Funds, which in accordance to Sections and of the California Community Redevelopment Law, requires a public hearing. The YES Board will also be considering the appropriation of funds to the proposed Center. The proposed project supports the City Council s FY goals of Financial Stability and Budget Efficiency, Sustainability by promoting and exploring public/private partnerships, and the City s infrastructure goal. BACKGROUD On January 15, 1991, Council and Agency established the YES Fund and authorized the establishment of the YES Set Aside Program after determining that there are unmet needs for Community-oriented facilities within, and in the immediate neighborhoods, of the then three Redevelopment Project Areas. The City and Agency found that specific projects and programs designed to meet Community needs would be of benefit to the Project Areas and eligible to be funded by the Agency in accordance with Section of the Health and Safety Code. The Agency adopted Resolution R-1608 whereby it agreed to set aside five percent of new tax increment in each of the Project Areas for the purpose of providing funding for new capital facilities for Community-oriented projects in the City to be carried out in conjunction with, or on behalf of, the YES Fund. Since the YES Fund was established, almost $9 million dollars have been contributed to the Fund for Community related improvements city-wide. There is currently $4.2 million available in the Yes Fund s unappropriated fund balance and it is expected that the total amount available in the Fund will be $5.8 million at the end of the fiscal year. The
2 following describes a proposal to use the available YES Funds on the proposed Lundigan Park Community Center. In September 2009, the Council held a joint study session with the Park, Recreation and Community Services (PRCS) Board. Staff presented a proposal to consolidate Community recreational services in the Golden State Focus Neighborhood. It was discussed that three organizations, the City s PRCS Department, the Boys and Girls Club of Burbank (Boys and Girls Club) and the Burbank Housing Corporation (BHC), all provide programming and services for the Community in this neighborhood. An overview of each organization s programs and services was presented; most of which are duplicated to some degree among the three organizations. It was discussed that while each organization has its distinct mission and strengths, there is an opportunity to collaborate and create a partnership among these three entities in order to maximize resources and minimize overlapping of services in the neighborhood by consolidating services at Robert E. Lundigan Park (Lundigan Park Exhibit A). Furthermore, staff presented the opportunity for the Boys and Girls Club to move operations from its existing location in order to expand programming. The Boys and Girls Club s existing location on Buena Vista Street is aging and inadequate in size for their current programming, and does not allow the expansion of programming to meet community needs. It was the consensus of the Council and the PRCS Board to support staff s proposal to explore the feasibility of a joint Center in the Golden State Focus Neighborhood, and directed staff to begin discussions with both the Boys and Girls Club and BHC. ANALYSIS Since the appointment of the project Oversight Committee in August 2010, staff has met with the stakeholders of the primary partners for the proposed Center, held two Oversight Committee meetings (September 23, 2010 and January 13, 2011), and discussed the potential partnerships, preliminary schematic design and community outreach process with the Oversight Committee. The following is a summary of the proposed partnerships, schematic design phase, community outreach, estimated schedule and next steps. PARTNERSHIPS The Boys and Girls Club remains thoroughly and enthusiastically committed to the partnership; exploring and discussing with City staff ways to collaborate on programming and Center space. The Boys and Girls Club Executive Director has joined staff on tours of other joint use Community centers in the area to assist in these discussions. In addition, staff has met with BHC and discussed that BHC s strength is the learning aspect of their activity and family resource center programming. Furthermore, it has been discussed that the Lundigan location, being right across the street from the new Transitional Housing Units at Naomi Street and Thornton Avenue, make BHC a natural partner. It is not clear if the proposed Center will replace the existing Catalina Activity and Family Resource Center, although that may be the ultimate alternative. However, at this stage it is too early to contemplate closure of the Catalina Center. At this point, the 2 P a g e
3 partners continue discussions focused on community need and capitalizing on each partner s strengths. Along with continuing discussions with the Boys and Girls Club and BHC, staff continues to explore other partnership opportunities, including possibly partnering with the Family Service Agency, the Burbank Unified School District and other organizations that may provide programming to benefit the neighborhood. SCHEMATIC DESIGN RTKL Associates, Inc., the Agency s contract architect, has developed preliminary, schematic development options based on partner feedback. While not final, the preliminary, schematic development options were presented to the Oversight Committee in January 2011 to begin discussions on how the Center could be designed, allowing for maximum flexibility as program goals evolve. The Oversight Committee discussed its project goals regarding site planning, programming areas, parking, the building size and layout, and focused the discussion on spaces that would be flexible, providing maximum utility. The following is a summary of the feedback on the preliminary, schematic design: Keep building flexible (programmable spaces); Create different spaces, not separate buildings; and Develop operational requirements that will affect the use of the open space as well as the interior areas. Finally, the Oversight Committee discussed opportunities for the reuse of the existing Boys and Girls Club facility, the possible reuse of the existing Catalina Center (depending on the final outcome of the BHC partnership), and the possible opportunity for a Phase II that might include the adjacent Fire Station property depending on future consolidation opportunities for other public serving facilities. COMMUNITY OUTREACH Staff coordinated two community outreach phases to garner feedback on the proposed Center. The first phase consisted of three community meetings held on October 20, 21 and 23, Golden State Neighborhood residents were notified of these community meetings via flyers, a Connect with your Community Newsletter and a door-to-door marketing effort by the Neighborhood Leadership Program graduates. The second phase consisted of a direct mail-in/drop-off survey to the over 1,100 property owners within the neighborhood. The surveys were distributed in early November, with a total of 158 surveys received by the November 30 deadline. The survey questions focused on current use, age demographics, and preferred outdoor amenities and programming elements. In summary, most respondents visit Lundigan Park on a weekly basis with the primary visiting age groups being 6-12 years and years. The neighborhood s desires for the outdoor amenities focused on the following: picnic area; shade structures; park 3 P a g e
4 benches; open grass area; and playground. In relation to programming, the majority of respondents believed that learning/education, arts/music, sports/fitness and technology were very important to the neighborhood. Staff was pleased with the community s level of interest and involvement which speaks to the level of neighborhood engagement in the area. With community input in hand, staff will be working with an architectural consultant to incorporate the feedback and ideas in the schematic design process as feasible. It is estimated that the schematic design phase will take two to three months to complete. Staff will work to finalize the schematic design with the project Oversight Committee, ultimately meeting and discussing the schematic design with the community and partner boards and the City Council. A cost estimate will also be developed during the schematic design phase, and both the final schematic design and cost estimate are tentatively scheduled to be presented to the Council for consideration in the Fall In order for the Agency to fund the construction of the proposed Center (with YES Funds) that is outside of a Project Area, certain findings must be made in accordance with California Community Redevelopment Law (CRL), Section Section of the CRL states that before a redevelopment agency commits to use the portion of taxes to be allocated and paid to an agency pursuant to subdivision (b) of Section of the CRL (tax increment financing) for the purpose of paying all or part of the value of land for, and the cost of the installation and construction of, any publicly owned building, other than parking facilities the legislative body shall hold a public hearing. As described in the following section of this report, the development of the proposed Center is another component of City-wide infrastructure investment. Businesses often consider these types of amenities when looking to expand or relocate in a community. Therefore, the development of the proposed Center can be a consideration when retaining, expanding and/or attracting business investment to the Project Area thereby helping to eliminate remaining blighted properties. Redevelopment Agency contributions toward infrastructure improvements, and in this case the construction of a publicly-owned facility, is consistent with the Agency s current five-year Implementation Plan. COOPERATION AGREEMENT AND SUMMARY REPORT Staff recommends the Council and Agency enter into a cooperation agreement that would allow the transfer of YES Funds from the Agency to the City (Exhibit B). While a cost estimate will not be developed until schematic design is finalized, based on preliminary estimates, staff is fairly certain the project will total at least $5.8 million. Therefore, staff recommends transferring and appropriating the current unappropriated YES Fund balance of roughly $4.2 million and future appropriations through June 2011 for a total appropriation of $5.8 million. HEALTH & SAFETY CODE SECTION AND FINDINGS In accordance with Section of the CRL, a redevelopment agency is not authorized to pay for the normal maintenance or operations of buildings, facilities, structures, or 4 P a g e
5 other improvements that are publicly owned. As defined, normal maintenance or operations does not include the construction, expansion, addition to or reconstruction of buildings, facilities, structures, or other improvements that are publicly owned. Section authorizes a redevelopment agency, with the consent of the legislative body (in Burbank s case, the Council) to pay for all or part of the value of the land for, and the cost of the installation and construction of any building, facility, structure, or other improvement that is publicly owned either within or without a project area, if all of the following four findings are determined and made by the legislative body: The buildings, facilities, structures, or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located; No other reasonable means of financing such buildings, facilities, structures, or other improvements is available to the community; The payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements will assist in the elimination of one or more blighting conditions inside the project area or provide housing for low-or moderate income persons; and Funding the project is consistent with the Implementation Plan. Furthermore, the Health and Safety Code, Section requires that before an agency commits to use a portion of taxes for the purpose of paying all or part of the cost of construction or reconstruction of any publicly owned building, the agency must hold a public hearing and make certain findings consistent with Health and Safety Code Section Sections and require a Summary Report, which includes overlapping components of information, including: (a) an estimate of the amount of taxes to be used for the project; (b) the facts supporting the findings required by Section 33445; and (c) the redevelopment purpose served by the use of taxes. The Summary Report for the proposed Center was prepared in accordance with the CRL and has been available for public review since April 11, 2011, two weeks prior to this public hearing, as required by law (Exhibit C). Additionally, this hearing was noticed in The Burbank Leader for two consecutive weeks prior to this evening s hearing, in accordance with the pertinent sections of the Health and Safety Code. Health and Safety Code Section Findings (a) The final cost for the proposed Center has not been finalized. However, the fiscal impact of the proposed Center is estimated to be $5.8 million. The Agency proposes to fund the Project with Property Tax Increment. Specifically, the funding is proposed to be appropriated from the YES Fund as those monies have been earmarked for Community-oriented facilities within, and in the immediate neighborhoods, of the City s Redevelopment Project Areas. At the approval of the Redevelopment Agency Board, the YES Board will appropriate the funds, and the Redevelopment Agency will enter into a cooperation agreement with the City of Burbank for the transfer of funds to a City Capital Improvement Project Account in 5 P a g e
6 the amount of $5.8 million. The Project represents an allowable use of Property Tax Increment, because the Center is of primary benefit to the Merged Project Area by developing a facility that will serve the businesses, industry and residential in the area. (b) The proposed Center is located just outside of the Merged Project Area, and will accomplish the goal of the Redevelopment Plan of creating public facilities and public infrastructure by providing this public facility. The proposed Center will provide a new amenity in the area that will serve the Merged Project Area and specifically the Golden State Project Area which includes a variety of stakeholders, including Media Studios North office complex, the Marriott Burbank Airport Hotel and Convention Center and the Bob Hope Airport. (c) The proposed Center would be an integral component of the infrastructure that supports and benefits the Merged Project Area as a whole. The Agency s funding commitment will help facilitate the redevelopment of the few pockets of blight that remain, by providing a recreation amenity that will be designed to serve the needs of commercial and residential neighborhoods during the final years of the Project Area life (assuming the Project Area still exists in some form). This new amenity can be a consideration when retaining, expanding and/or attracting business investment to the Project Area thereby helping to eliminate remaining blighted properties. Health and Safety Code Section Findings As previously mentioned, the findings required by Section somewhat overlap those required by Section The following information addresses the findings in accordance with Section 33445, regarding the proposed Center: 1) The use of Agency funds is of benefit to the project area funding the improvements. The proposed Center is located just outside of the Merged Project Area, specifically the Golden State Project Area and within the Golden State Focus Neighborhood. The purpose of assisting the proposed Center is to: 1) address long-standing deficiencies in amenities in the immediate area that will help retain, expand and attract quality business and investment to the Merged Project Area; and 2) by providing this much needed amenity in an area that lacks recreational facilities, assist with the redevelopment of properties in the Merged Project Area thereby eliminating substandard buildings and underutilized properties with future investment. Therefore, the proposed Center will accomplish the goal of the Redevelopment Plan of improving public utilities and public infrastructure by providing this public building that will benefit a variety of stakeholders in the Merged Project Area including the Media Studios North office complex, the Marriott Burbank Airport Hotel and Convention Center and the Bob Hope Airport. 6 P a g e
7 7 P a g e In addition, the proposed Center is located within the Golden State Focus Neighborhood. The proposed Center will benefit families in Agency-assisted affordable housing developments in the Focus Neighborhood by providing a public facility with amenities and programming to build healthier families. Finally, one of the goals during the schematic design phase will be to incorporate current practices that promote and support long-term environmental sustainability. The Center will meet the City s new Green Building Standards Code and will incorporate drought-tolerant landscaping, as well as more effective storm water management opportunities. 2) There is no other reasonable means of financing the proposed improvements. The City s General Fund is facing more budget cuts and funding is severely limited. The City s current and projected revenue vs. expenditure projections do not support the funding of this critical project. As of the writing of this report, a General Fund shortfall of roughly $8.7 million is currently anticipated. In addition, the State s budget deficit is likely to impact local government budgets even further, including the grave uncertainties revolving around the fate of redevelopment. Center funding is not available from any other source available to the City without delaying or cancelling other necessary infrastructure projects. Therefore, even with the uncertainties surrounding the future of our Redevelopment Agency, staff believes it prudent to appropriate all YES Funds available to the Center. 3) Funding the project will assist in the elimination of one or more blighting conditions inside the project area. As previously noted, the site of the proposed Center, is located just outside of the Merged Project Area and specifically the Golden State Project Area. The Center would offer an important amenity not only for the residents of the Golden State Focus Neighborhood, but also for the job generators in the Merged Project Area and would be an important component of the city s infrastructure. Currently, the park is under-utilized and has functionally obsolete major systems and park components that do not meet the needs of the community. The proposed Center would be an integral component of the infrastructure that supports and benefits the Merged Project Area as a whole. The Agency s funding commitment will help facilitate the redevelopment of the few pockets of blight that remain, by providing a recreation amenity that will be designed to serve the needs of commercial and residential neighborhoods during the final years of the Project Area life (assuming the Project Area still exists in some form). This new amenity can be a consideration when retaining, expanding and/or attracting business investment to the Project Area thereby helping to eliminate remaining blighted properties. Furthermore, the proposed Center will have a benefit to the Golden State Focus Neighborhood by providing community-serving uses that build healthy families for
8 8 P a g e households in Agency-assisted affordable housing developments in the Focus Neighborhood. Residents of Agency-assisted projects in the Focus Neighborhood will be made aware of the Center, and will be given priority notice and advance opportunity for class registration, events and programs. 4) Funding the project is consistent with the Agency s current Implementation Plan. The Redevelopment Agency s approved Implementation Plan of Fiscal Years calls for capital improvement investments that address deficiencies in the City s public infrastructure. Furthermore, the Agency s five-year Implementation Plan mentions community serving uses that strengthen families specifically in Agency-assisted affordable housing developments. Therefore, the Center is consistent with the Implementation Plan as further described below. The Burbank Redevelopment Agency provides essential funding to support or facilitate the City s efforts to protect the environment and preserve existing resources while continuing to enhance the community s quality of life. This is achieved by providing or facilitating the development of Focus Neighborhood Family Resource Centers, parks, libraries, theatres, public safety facilities, and safe communities. The Center will improve an existing park and provide a new Center while incorporating sustainable building methods. Finally, the Center would be a focal point for the Agency to continue to support facilities and developments such as the Elmwood Achievement Center, childcare centers and the various family resource centers that provide programming in the community. Currently, the Agency sponsors a variety of community resources and Focus Neighborhood programs that connect families, cultivate neighborhood interactions, and foster resident participation within the broader Burbank community. The Center is a perfect example of making investments that will leverage Agency resources with those of local community service providers. CONCLUSION Since the YES Fund was established, almost $9 million dollars have been contributed to the Fund used for Community related improvements at our local schools, and other Community related improvements city-wide. There is currently $4.2 million available in the Yes Fund s unappropriated fund balance and it is expected that the total amount available in the fund will be $5.8 million at the end of the fiscal year (June 2011). The joint public hearing this evening is for the consideration of resolutions of the City Council and Redevelopment Agency Board to approve a cooperation agreement and appropriation of YES Funds for the proposed Lundigan Community Center. Furthermore, at the direction of the Agency Board, the YES Board will also be considering the appropriation of funds to the proposed Center. As part of the actions to be considered, the Agency proposes to fund the cost of the construction of the proposed Center with YES Funds. In accordance with Sections and of the CRL, the proposed actions this evening include making the required findings under the law. The information
9 for the legislative body (City Council) to make those required findings is summarized in this report and the attached Summary Report as previously described. The final project design and bid award will be considered at a later date. However, the overall concept of the proposed Center supports the City Council s FY goals of: Financial Stability and Budget Efficiency; Sustainability (by promoting and exploring public/private partnerships); and the infrastructure goal. In addition, as described earlier in the report, the proposed Center will capitalize on collaborations and partnerships among PRCS Department, the Boys and Girls Club and BHC in order to maximize resources and minimize overlapping of services. Finally, the development of the proposed Center would be a new amenity that can be a consideration when retaining, expanding and/or attracting business investment to the Project Area thereby helping to eliminate remaining blighted properties. Redevelopment Agency contributions toward infrastructure improvements, and in this case the construction of a publicly-owned facility, is consistent with the Agency s current five-year Implementation Plan. During the next several months, staff will be working with an architect to finalize the schematic design and develop a final cost estimate for the proposed Center. The following is a tentative schedule/timeline on the next steps for the proposed Center: Finalize Schematic Design 1 April June 2011 Community Meetings - Final Schematic Design 2 July August 2011 Council Consideration - Schematic Design/Project Budget 3 September October 2011 Design Development Phase November 2011 January 2012 Construction Documentation Phase February July 2012 Bid Process August September 2012 Final Project Consideration and Award of Contract October 2012 ENVIRONMENTAL REVIEW The City of Burbank, acting as the lead agency, has determined that the appropriation of funds and the Summary Report as described herein is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines. The Public Notice of Environmental Decision was posted at the Planning Division Counter from April 12, 2011 to April 26, Development Review will be initiated during the schematic design phase. 2 Community outreach will be woven in throughout the process and will occur simultaneously with different components as needed. 3 This phase includes consideration by all stakeholder boards and ultimately Council. 9 P a g e
10 FISCAL IMPACT There is currently $4.2 million available in the YES Fund assigned (unappropriated) fund balance and it is expected that the total amount available in the fund will be $5.8 million at the end of the fiscal year. Staff proposes to transfer funds from 130.ND (YES Fund Assigned Fund Balance) through June 30, 2011 to the General City Capital Projects-specific account 370.PR21A , Lundigan Park Community Center. RECOMMENDATION Staff recommends the City Council and Redevelopment Agency Board adopt the proposed resolutions which approve the proposed cooperation agreement and the transfer and use of YES Funds for the proposed Lundigan Community Center. In addition, staff recommends the appropriation of YES Funds for the proposed Center by the YES Board. EXHIBITS Exhibit A Exhibit B Exhibit C Aerial Map of Lundigan Park Cooperation Agreement between the Burbank Redevelopment Agency and the City of Burbank Summary Report for the Proposed Lundigan Community Center 10 P a g e
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