TITLE
Recommendation to adopt a resolution making certain findings regarding certain public improvements to construct a mini-park at Plymouth Street and Elm Avenue using North Long Beach Redevelopment Project Area funds. (District 8)
DISCUSSION
On January 18, 2005, the City Council adopted a resolution authorizing the issuance of revenue bonds in the amount of $199,982,000, which included approximately $60,000,000 for redevelopment projects in the North Long Beach Project Area.
Additionally, the City Council approved a motion requiring that expenditures of bond proceeds for specific projects be brought before the City Council for approval.
The North Long Beach Strategic Guide for Development (Strategic Guide) has identified specific projects within the North Long Beach Redevelopment Project Area (Project Area) that will serve as catalysts for neighborhood revitalization. One of the major priorities identified by the community is the development of open space and community facilities in underserved neighborhoods within the Project Area.
A total of $2,000,000 of North Long Beach Project Area bond proceeds is required to leverage $1,990,000 appropriated from other non-General Fund funding sources, primarily state park grants and park impact fees, to support the following two open space projects:
Mini-park at Plymouth Street and Elm Avenue (District 8) - ($700,000)
The mini-park at Plymouth Street and Elm Avenue is a proposed open space development (Exhibit A). The 48,750-square foot site was purchased for $415,290 on March 15, 2002 and the Department of Parks, Recreation and Marine (PRM) identified non-agency funds for design and development of the proposed park. Between September 2002 and March 2005, PRM held public meetings to gather community input regarding park design. After overcoming various design obstacles, design plans were finalized in March 2005 (Exhibit B). Total construction costs are now estimated to be $1,288,238. Approximately $590,000 was previously appropriated in the Capital Projects Fund (CP) for construction. Hence, there is a projected shortfall of approximately $700,000. Most of this shortfall is due to continually increasing material costs, required on-site parking and additional amenities requested by the community during the design and public input process.
Kidd Park Teen and Community Recreation Center (District 7) - ($1,300,000)
The Teen and Community Recreation Center (Center) will replace a tiny, decaying building currently in the park (Exhibit C). The new Center will provide a facility for positive after-school activities for high school students and will also enable the expansion of park programming for the entire Westside community. Such community activity will provide additional supervision surrounding the Cabrillo High School campus while also helping to create a more positive and nurturing environment.
The City has received approximately $1,400,000 in State Park Bond funds for the Center. However, in the few years between the cost estimate prepared for the State Park grant application and final approval of the design plans, the cost of the building has increased from $120 to $250 per square foot, again due to rapid increases in construction costs. Total cost for the project is now estimated to be $2,700,000.
Hence, there is a budget shortfall of $1,300,000 for the Center, which would now be completely ready for construction were funding available.
The Long Beach Redevelopment Agency Board approved a recommendation on June 27, 2005, to utilize North Long Beach Project Area bond proceeds to support the two proposed developments.
California Redevelopment Law provides that the Redevelopment Agency may, with the consent of the City Council, pay for public improvements, which are publicly owned either within or outside of a redevelopment project area, if the City Council determines all of the following: .
. That the construction of such public improvements are of benefit to the redevelopment project area or the immediate neighborhood in which the public improvement project is located;
. That no other reasonable means of financing the public improvements are available to the community; and
. That the payment of Redevelopment Agency funds for the construction of the public improvements will assist in the elimination of one or more blighting conditions within the Project Area.
This letter was reviewed by Assistant City Attorney Heather A. Mahood on July 8, 2005 and Budget Management Officer David Wodynski on July 8, 2005.
TIMING CONSIDERATIONS
City Council action is requested on July 19, 2005, in order to initiate the transactions.
FISCAL IMPACT
The General Fund (GP) will not be impacted by the design and construction of these projects. Construction funding comes from $1,400,000 in the State Park Bond funds, $590,000 of previously appropriated Capital Project Funds (CP), and the $2,000,000 of Redevelopment funds (RD) detailed in this request.
Ongoing operating costs for the parks will be budgeted in the Department of Parks, Recreation and Marine (PR). There is no budget impact anticipated for the Admiral Kidd Park Teen and Community Recreation Center, as the new facility will replace an existing one. However, funding has not been identified to provide staffing and equipment necessary to maintain the new mini-park at Plymouth Street and Elm Avenue when completed. The General Fund (GP) may be impacted in the future by these and other costs.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH MAKING CERTAIN FINDINGS REGARDING THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS WITH REDEVELOPMENT FUNDS (PLYMOUTH AND ELM MINI-PARK)
Respectfully Submitted,
CRAIG BECK
ACTING DIRECTOR OF COMMUNITY DEVELOPMENT