CC MIN 03-24- to 05-21-1981 - Laserfiche WebLink

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9 could be a blend of financing methods through use of a nonprofit corpora- tion or joint powers agreement, but since there is no revenue from a library, revenue bonds would not be a possible approach, but that a public facility can be constructed in conjunction with a redevelopment project. In response to questions, Mr. Schricker advised that a leaseback arrange- ment is possible, assuming there is some source of revenue to make the payments, and that there are some areas which tax experts might investi- gate, but big "ifs" exist which may make them impractical. He noted that in redevelopment, a public agency uses its authority to acquire property and place it in the hands of private developers to develop and redevelopment bonds may be sold, suggesting it is possible a library could be included as a desirable feature. City Manager Fales pointed out that the purpose of a redevelopment project must be to rehabilitate a blighted area of a city and that parts of an overall project need not be geographically related. Mr. Fales reported on legislation pending in the current session of the Legislature which might clarify the means by which local government can borrow money under reasonable laws in order to do necessary projects. He noted that bonds are a legitimate financing vehicle and the many agencies whose business is involved are vitally interested in solving the problem. He observed that California has had very successful redevelopments. i Discussion continued generally concerning the possibilities which might be offered by redevelopment, community fund raising, a federal grant such as EDA, the remote possibility of obtaining the favorable vote of ? two-thirds of the registered voters, and any combination of methods to obtain the funds necessary to construct and maintain a new main library. It was pointed out that the City has some property which might be used in such a way that the City retains the land and makes use of it to generate funds. In response to questions, Mr. Fales described the kind of action which would be necessary to proceed with redevelopment of blighted areas of the City, stating that after receiving policy direction from Council, a contract would be signed with a financial consultant who would put to- gether the information needed to invite prospective developers to work .n with the City. He observed that property owners already in a prospective development area have first opportunity to work with the City in a project, or they can choose to be paid full market value for their property. Mr. Fates pointed out that there is no assurance that a library would be 1 included in a redevelopment project, but that such a use is generally considered to be highly desirable. He suggested that funds should first be spent to employ financial consultants, then, if a library is feasible as part of a redevelopment project, site and architectural plans can be arranged. Mr. Fales said that all that would be at risk would be the investment of some $20,000 in financial planning and staff time for planning and a redevevopment report can be ready to be placed on the April 6 Council agenda. Mr. Schricker pointed out that formal steps are required with regard to any financing mechanism, and that appropriate expert advice is necessary, but that possibilities do exist which might result in construction of a new library. Library Board members stated they are generally encouraged by the Council's evident support for a new main library. Adjournment Upon motion duly made, seconded and carried, the Joint Meeting of the City Council and Library Board adjourned at 9:05 p.m. to an executive session at 5:00 p.m., Thursday, March 26, 1981 in the City Manager's office for consideration of labor negotiations. JACQUELINE C. HILDEBRAND City Clerk wadi Jnt.Mtg. 3/24/81 Page 2 R