CITY OF SUNNYVALE

REPORT

Planning Commission
November 24, 2003

SUBJECT: City of Sunnyvale Redevelopment Agency – Adoption of a proposed 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 City Council and Agency Board is expected to consider approval of the Plan Amendment at a public hearing on December 16, 2003.

Staff recommends that the Planning Commission adopt the attached resolution and recommend that the City Council adopt the Plan Amendment.

BACKGROUND

On November 11, 2003, the Sunnyvale City Council and the Sunnyvale Redevelopment Agency Board authorized a joint public hearing to be held on December 16, 2003 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 the eminent domain authority would be exactly in the same manner as it existed.  The Plan Amendment expressly prohibits the Agency from using the power of eminent domain to acquire residential dwellings. These provisions were intentionally adopted 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.

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 (condemnation) within the Project Area since its adoption in 1975, the authority has expired. 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.

On June 17, 2003, the City Council adopted General Plan Amendments to the downtown area to revise land uses and heights. On October 14, 2003, the City Council adopted amendments to the Downtown Specific Plan and Zoning Code. 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.

Notices have been sent to all property owners and occupants in the Redevelopment Area (approximately 2100 notices by first class mail) and notice was published in the local newspaper, The Sun, as required by Redevelopment Law. The notice informs persons of a Community Meeting to be held on December 3, 2003 at 7:00 p.m. in the Council Chambers and 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.

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.

Staff recommends that the Planning Commission adopt the attached resolution recommending that the City Council adopt the Plan Amendment and finding that:

1. The Planning Commission finds that the proposed Plan Amendment is a component of and is consistent with the project analyzed in the Program EIR, therefore, no additional review is required and that the Plan Amendment is subject to the Mitigation Monitoring Program adopted by the Council for the Program EIR.     

2. Pursuant to Section 33346 of the Community Redevelopment Law, the Redevelopment Plan as amended by the proposed Plan Amendment conforms to the General Plan;

3. Pursuant to Section 65402 of the Government Code, acquisition of property by the Agency, if any, pursuant to the Redevelopment Plan, as amended by the proposed Plan Amendment, conforms to the General Plan;

4. The Planning Commission recommends to the City Council approval and adoption of the Plan Amendment and in the event that prior to its adoption, the City Council desires to make any minor, technical, or clarifying changes to the Plan Amendment, the Planning Commission hereby finds and determines that any such minor, technical, or clarifying changes need not be referred to it for further review and recommendation, and hereby waives its report and recommendation under Section 33455 of the Community Redevelopment Law concerning and such change; and

5. The Planning Commission deems this Resolution to be the report and recommendation of the Planning Commission concerning the proposed Plan Amendment and contemplated public projects and activities under the Redevelopment Plan, as amended by the proposed Plan Amendment, as required under Section 33453 of the Community Redevelopment Law.

ENVIRONMENTAL REVIEW

As part of the Downtown Improvement Program Update, the City 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 the Project, including 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 proposed amendments to the Redevelopment Plan are components of and consistent with the Project analyzed in the Program EIR, therefore, no additional review is required.  The Redevelopment Plan Amendment is subject to the Mitigation Monitoring Program adopted by the Council for the Project.

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 Commission 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.

ALTERNATIVES

1. Adopt the attached resolution recommending that the City Council adopt the Plan Amendment.

2. Do not adopt the attached resolution.

RECOMMENDATION

Staff recommends that the Planning Commission approve Alternative #1.

Prepared by:

Brice McQueen
Redevelopment Manager