December 16, 2003

 

SUBJECT: Joint Public Hearing to consider adoption of a proposed fourth amendment to the Central Core Redevelopment Plan.

REPORT IN BRIEF

The Redevelopment Plan for the Central Core Redevelopment Project was adopted in 1975. The Redevelopment Agency of the City of Sunnyvale is now proposing to amend the Plan in order to reinstate eminent domain authority for a period of twelve years on non-residential properties in the Central Core Redevelopment Project Area, excluding properties on which persons reside. The Agency will also amend the Plan to clarify that the Plan will be in conformance with the City’s General Plan and the Downtown Specific Plan as they currently exist and as they may be amended in the future. The proposed Amendment would further the Agency’s efforts to alleviate blight and enhance the economic vitality of the Project Area.

 

The Agency has no current plans to acquire particular properties.  However, eminent domain authority remains a tool that may be needed in the future to carry out the goals and objectives of the Redevelopment Plan.  The use of this tool would be limited and used only as a last resort toward a project of greater community benefit.

 

The current Redevelopment Plan land uses are the General Plan land uses that existed prior to the recent amendments to the General Plan this year.  The proposed Plan Amendment will adopt the current General Plan land uses and related development guideline and will provide for ongoing conformity between the General Plan land uses and the Redevelopment Plan land uses.

 

The Planning Commission adopted the attached resolution finding that the proposed Plan Amendment conforms to the General Plan and forwarded a recommendation of approval to the City Council/Redevelopment Agency Board.

 

Staff recommends that the City Council adopt the attached ordinance adopting the Plan Amendment.

 

BACKGROUND

 

On November 11, 2003, the Sunnyvale City Council and the Sunnyvale Redevelopment Agency Board authorized a joint public hearing to consider adoption of a proposed amendment to the Central Core Redevelopment Plan. The proposed amendment will conform the land uses in the Redevelopment Plan to the recently amended General Plan and Downtown Specific Plan and reinstate the Agency’s eminent domain authority over non-residential properties for twelve years.

 

The Sunnyvale City Council adopted the Redevelopment Plan for the Central Core Redevelopment Project on November 26, 1975, establishing approximately a 184-acre redevelopment project area. Under Redevelopment Law, the provision for eminent domain remains in effect for twelve years, and therefore the authority has expired.

 

The reinstatement of eminent domain authority would be in a more restrictive manner than as previously amended in 1986, which only excluded single family residential dwellings compared to the proposed amendment to exclude all residential property. These provisions were intentionally adopted as a policy so as to protect homeowners from the possibility of having their homes purchased through condemnation.

 

In addition, the Plan Amendment also conforms the land uses under the Redevelopment Plan with the land uses permitted under the recently amended General Plan and Downtown Specific Plan. (On June 17, 2003, the City Council adopted General Plan Amendments to the downtown area to revise land uses and on October 14, 2003, the City Council adopted amendments to the Downtown Specific Plan and Zoning Code.)

 

The plan amendment was referred to the Planning Commission on November 24, for its report on General Plan conformance and its recommendations to the City Council/Redevelopment Agency Board regarding approval of the amendment. The Planning Commission adopted the attached resolution recommending that the City Council adopt the Plan Amendment, finding that the proposed Plan Amendment conforms to the General Plan.

 

As required by Redevelopment Law, a community meeting was noticed and held on December 3, 2003 in order to explain the proposed plan amendments and answer questions that property owners and occupants may have.  Approximately 17 people attended this meeting. The meeting notes for the community meeting are attached.  Concern from residents was expressed on how the eminent domain authority would be used.  Staff explained to those attending that the Agency would only consider using eminent domain in extreme circumstances and only after extensive efforts to negotiate a voluntary sale of property failed.  Staff further explained that the Agency has no present plans to use it, however, it remains a tool that the Agency feels is important to reinstate.

 

DISCUSSION

 

One purpose of the proposed Plan Amendment is to reinstate the deadline for commencement of eminent domain proceedings by the Agency over non-residential property within the Central Core Redevelopment Project Area for twelve years. Although the Plan has authorized eminent domain within the project area since its adoption in 1975, the Redevelopment Plan, as previously amended in 1986, currently contains a time limit of December 30, 1998 for eminent domain proceedings with respect to property within the project area. The proposed Plan Amendment would provide for twelve years of Agency power of eminent domain over non-residential properties.

 

To effectively continue to implement redevelopment activities in Sunnyvale, an amendment to the Redevelopment Plan is necessary and appropriate to reinstate the Agency’s eminent domain authority for twelve years.  The amendment will not add territory to the Redevelopment Project Area, change the financing provisions, or grant any different authority to the Agency.

 

Although, the Agency would only use eminent domain to acquire property as a last resort if negotiations were unsuccessful, it remains an important tool for the Redevelopment Agency to maintain.  Should the Agency exercise its power of eminent domain in the future, strict requirements of State law will be followed to insure that property owners receive fair compensation as well as relocation and certain tax benefits.

 

The second purpose of the Plan Amendment is to conform the land uses under the Redevelopment Plan to the land uses in the recently amended General Plan and Downtown Specific Plan. The proposed Amendment will clarify that the governing land use authority for the Plan is the City’s General Plan, Downtown Specific Plan and Zoning Code as they currently exist, and as they may be amended in the future.

 

The Downtown Specific Plan builds on the General Plan land uses and building heights, and provides more specific direction about public and private improvements, including goals and policies, building design guidelines, and infrastructure improvements. In addition, the City’s Zoning Code has been updated to reflect permitted land uses and applicable development standards. The Project Area is included within the Downtown Specific Plan area. Thus, with the proposed amendment, these recently adopted land use modifications will govern future land uses for properties within the Project Area.

 

As required by Redevelopment Law, a redevelopment plan amendment of this nature must be referred to the Planning Commission for its report on General Plan conformance and its recommendations to the City Council/Redevelopment Agency Board regarding approval of the amendment. The Plan Amendment purpose is to conform the land uses under the Redevelopment Plan with the land uses permitted under the recently amended General Plan and Downtown Specific Plan and to reinstate the Agency’s eminent domain authority over non-residential properties for twelve years. The amendment does not change any of the goals and objectives, financing, or other provisions of the Plan. Under Redevelopment Law, a redevelopment plan must be consistent with the general plan.

 

The attached Fourth Plan Amendment Report serves as the report to the City Council/Agency Board for the proposed Plan Amendment to the Redevelopment Plan, as required by California Community Redevelopment Law (CRL). This report contains the information required by Section 33352 of the CRL to the extent warranted by the proposed Plan Amendment.

 

The Fourth Plan Amendment Report provides comprehensive background information on the proposed Plan Amendment. Each chapter of the report corresponds with the listed CRL requirements. 

 

ENVIRONMENTAL REVIEW

 

The City has previously prepared a Program Environmental Impact Report (“the Program EIR”) pursuant to the California Environmental Quality Act (“CEQA”) to consider and analyze the environmental impacts related to adoption of amendments to the Land Use and Transportation Element of the General Plan, the Downtown Specific Plan and the Zoning Code. The Program EIR was certified by the Council at its June 17, 2003 meeting (Resolution No. 123-03), where Council found that it presented an adequate and extensive assessment of the environmental impacts of the Project, and adopted a statement of overriding considerations related to certain impacts on traffic and air quality, and adopted a mitigation monitoring program.  The Program EIR will serve as the required environmental documentation pursuant to CEQA for the Fourth Plan Amendment. Any action to be taken pursuant to the Fourth Plan Amendment will be subject to environmental review at such time as it is proposed.

 

FISCAL IMPACT

 

The provision of eminent domain authority for the Agency will enable the Redevelopment Agency to implement the goals of the Redevelopment Plan and should have a positive financial impact on the Redevelopment Project Area and those properties located within the Project Area.  It is estimated that the Plan Amendment process will cost approximately $20,000 in consulting, legal fees, noticing costs, and related items.  Sufficient funds to pay for these costs are included in the Agency’s FY 2003/2004 Operating and Project Budget 814950.

PUBLIC CONTACT

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page and the availability of the report in the Library and the City Clerk’s Office. Notices were sent to all property owners and occupants in the Redevelopment Area (approximately 2100 notices by first class mail), affected taxing entities (by certified mail) and notice was published three consecutive weeks in the local newspaper, The Sun, as required by Redevelopment Law. The notice informed persons of the Community Meeting held on December 3, 2003 at 7:00 p.m. in the Council Chambers and of the joint public hearing with the City Council/Redevelopment Agency on December 16, 2003 at 7:30 p.m. in the Council Chambers to consider adoption of the Plan Amendment.

 

ALTERNATIVES

 

1.      Adopt the attached ordinance approving the fourth plan amendment to the Redevelopment Plan.

 

2.      Do not adopt the attached ordinance approving the fourth plan amendment to the Redevelopment Plan.

 

RECOMMENDATION

 

Staff recommends that the City Council approve Alternative #1. 

Prepared by:

Brice McQueen
Redevelopment Manager

Reviewed by:

Mary J. Bradley
Director, Finance Department 

Reviewed by:

Bob Paternoster
Director of Community Development

 

Approved by:

Robert S. LaSala
City Manager

Attachments

A. Ordinance and Plan Fourth Amendment to the Redevelopment Plan.

B. Fourth Plan Amendment Report. (copy available at the City Clerk's office)

C. Planning Commission Report and Minutes (11/24/03).