Laserfiche WebLink
IREPORT <br /> Fr~m the C~ty Manager <br /> <br />November 18, 2002 <br /> <br />Subject <br />Ordinance eliminating the existing time limit on incurring debt for the Redevelopment Plan <br />for Redevelopment Project No. 2 <br /> <br />Recommendation <br />Introduce the Ordinance to eliminate the existing time limit on the Agency's ability to <br />incur debt. <br /> <br />Background <br />The City has developed the Downtown Area Plan as the first step in a comprehensive <br />strategy towards revitalizing Downtown. Staff is working hard to bdng existing projects to <br />completion and to devise strategies for imPlementing some of the other projects we have <br />not yet started. <br /> <br />Staff has not yet made a recommendation to you on a funding plan for Downtown, but what <br />is evident is that neither the City nor Agency has sufficient funds on-hand (i.e. fund <br />balance) to fully implement the plan. If the City Council wishes to move forward <br />aggressively on a number of major projects, Council needs to consider a variety of <br />financing approaches, one of which is the issuance of long term debt to fund these <br />projects. <br /> <br />Fiscal Impact <br />The Redevelopment Agency is just one source of funcing available for Downtown but a <br />significant one. The Ordinance being presented to you seeks to maintain the City's <br />flexibility by preserving your ability to use all the Agency's revenue for Downtown <br />objectives. You are not being asked to make any funding commitments bythis Ordinance. <br /> <br />The Redevelopment Agency started in 1982 and was limited to two small areas in the <br />Downtown (called Centre and Gateway) and two slightly larger areas on the Bay front <br />(Marina and Seaport). In 1985 a small area along El Camino was incorporated into the <br />Redevelopment area (NE side between James and Jefferson). In 1989 the "Downtown" <br />Redevelopment sub-area was created that extended from Whipple on the north to Charter <br />Street on the south. In 1994 the City Council amended the Redevelopment Plan to <br />conform to new state legislation. This legislation created the following time limits on the <br />establishment of loans, advances and indebtedness. The time limit varied by the date the <br />area was added to redevelopment: <br /> <br /> <br />