November 11, 2003

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

REPORT IN BRIEF

The adoption of the attached resolutions will set December 16, 2003 as the date for a joint public hearing and authorizes proceeding with the plan amendment adoption process to consider an amendment to the Redevelopment Plan to 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.  In addition, staff is directed to complete noticing as required by Redevelopment Law.  The Planning Commission will review the proposed amendment at its meeting of November 24, 2003 and Agency staff will conduct a community meeting on December 3, 2003 to discuss the amendment with property owners, business owners and resident’s in the Redevelopment Project Area. 

BACKGROUND

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

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.

Another 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.

California Redevelopment Law requires that a joint public hearing with the City Council and Redevelopment Agency Board be conducted.  The attached resolutions authorizes the joint public hearing on December 16, 2003 at 7:30 PM in the Council Chamber, and authorizes proceeding with the plan amendment adoption process for the purpose of considering the Plan Amendment for the Redevelopment Project Area.

The resolution further directs Agency staff to: 1) publish a Legal Notice of the joint public hearing not less than once a week for three successive weeks prior to the public hearing in The Sun newspaper; 2) to mail, by first class mail, a copy of the Notice to the last known address of each property owner in the Redevelopment Project Area as shown on the last equalized assessment roll of Santa Clara County; 3) to mail, by first class mail, a copy of the Notice to the occupants of each address in the Redevelopment Area, thereby providing additional notice to businesses and residents in the Project Area; and 4) to mail, (by certified mail, return receipt requested) a copy of the Notice to the governing body of each of the taxing agencies which levies taxes upon any property in the Project. 

The Sunnyvale Planning Commission is scheduled to review and make recommendation to the City Council regarding the proposed Plan Amendment at its regular meeting of November 24, 2003.  As required by Redevelopment Law, Agency staff will conduct a community meeting on December 3, 2003, 7:00 PM in the Council Chambers, in order to explain the proposed amendment to concerned property owners, business owners and tenants and answer questions that they might have.

As noted above on November 13, 2003 Agency staff will be mailing out first class letters to all property owners, business owners and tenants in Redevelopment Area.  A copy of the letter and notice that will be sent out is attached as Attachment 3.  This will result in several hundred letters being mailed out to assure property notification. 

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. 

ALTERNATIVES

1. Adopt the attached resolutions setting December 16, 2003 as the date for a joint public hearing and authorizing the plan amendment adoption process.

2. Do not adopt the attached resolutions 

RECOMMENDATION

Staff recommends that the Agency Board 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

1. Resolution of the City Council setting December 16, 2003 as the date for a joint public hearing.

2. Resolution of the City Council authorizing the plan amendment adoption process.

3. Notice to Property Owners and Occupants