City Redevelopment Funds Take Another Hit
By Jean McLeod — Wednesday, March 9th, 2011
Mayor Gayle Washburn presented outgoing Planning Commissioner Diane McCall with a proclamation for her service at Tuesday night’s council meeting. The March 8, 2011 City Council came with both good and bad news. On the Council’s agenda was an unexpected savings to the residents of Fillmore, but on the Redevelopment Agency’s (RDA) agenda the City may take a large financial hit. Agenda items included updates on the proposed community garden and dog park, extension of the employment position for Linda Pappas (Diaz), the second reading of the moratorium on medical marijuana dispensaries for one year and the contract for street sweeping. The RDA items were a proposed revised Storefront Rehabilitation Program (SRP) criteria and the disposition of RDA property. The Council again, similar to the last meeting, addressed a loss to the RDA on property the agency extended financial backing. The question at this meeting was what to do with the property at 401 Arundell Circle, Unit 14 which the City now owns and wants sold. At the February 22, 2011 meeting the Councils asked that an update of the disposition of the property be presented at the next Council Meeting. On October 5, 2010 the RDA granted authorization for the property’s sale to a qualified household or an affordable housing developer. As of today the RDA has a total investment of $162,710 which includes the original down payment assistance loan of $40,000, acquisition cost of $106,500, rehabilitation and repair costs of $9,220 and payment of Homeowner Association dues from August 2009 through February, 2011. On October 27, 2010 a market value appraisal of $152,000 was given on the property, which is almost $11,000 less than the City has invested to date. The main factor preventing the sale is lack of available funding in the current economic climate. The property is part of a 26 unit project which is currently reported to be less than 51% owner occupied. Consequently, FHA and other federally funded loan instruments are not available to a potential buyer due to the low percentage of owners. City Manager Yvonne Quiring informed the Council that selling the property to a low income buyer would count toward the City’s quota of affordable housing, but for that to happen the City would have to help with financial assistance. Also the price of the property would have to be reduced to about $100,000 or possibly as low as $70,000 for a very low income applicant to qualify. That idea did not sit well with the Council who then opted to sell the property on the open market (without affordability restriction), and listing the property with a local real estate agent. Another item on this meeting’s agenda was street sweeping. Street sweeping has previously been paid for out of the city’s general fund at a cost to the city of $64,737.14 annually. But during the 2011 budget process, a Proposition 218 hearing was held which authorized a charge of up to $1.10 for street sweeping services to each residence in Fillmore. The charges will not be billed by the City, but rather by Santa Clara Valley Disposal directly to Fillmore customers. During the hearings, Fillmore residence voiced their concerns about parked vehicles preventing the street sweepers from cleaning some areas. Various options were discussed, including the posting of signs (approximate cost $13,000). The decision was made to provide an approximate time frame for the sweepers to residents in various parts of the City and to post these on the City website, Channel 10, provide handouts, maps, etc., to residents. The good news is that the cost will be less than half of what was expected and some service will be extended, but weeks of service will be reduced. Residents will be charged $.50 per month for the service and all alley ways in town will now be swept, including those which had not been cleaned in the past. Cleaning times will be reduced from 26 times per year down to 24 times per year, with an additional 20 hours of sweeping allocated for cleaning up after accidents (two hours or less after receiving a call) and 20 hours to be allocated for leaf clean-up days. Central Avenue will be swept twice weekly (during time when vehicles are not present) and Highway 126 weekly. The contract with the City is for 3 years with (2) one year extensions. Streets will be swept on the first and third Monday between 7 a.m. and 4 p.m. Complaints about streets not being swept will be addressed in Santa Clara Valley Disposal quarterly customer newsletter which will direct them to the Fillmore’s City website. Any direct calls to Santa Clara Valley Disposal will be referred to the business doing the street sweeping, Venco Sweeping Company. On the RDA’s agenda was the revised Storefront Rehabilitation Program (SRP). The RDA adopted the program on December 13, 1988 and provided it a budget of $50,000 with a maximum grant amount of $5,000 available per business. The program focused on businesses on Central Avenue as a means to reinvigorate downtown. The 1994 Northridge Earthquake destroyed many of Central Avenue’s storefronts and the RDA re-instituted the SRP to assist with the downtown businesses’ rebuilding efforts. During this RDA meeting discussions began over how wide of an area the program should now try to cover. Council Member Patti Walker first stated all businesses in Fillmore should be included, but later qualified that statement by saying she was referring to all small businesses, not businesses such as Super A. Council Member Jamey Brooks stated it seemed unfair to those businesses outside the downtown area, not having access to the funds, and he was in favor of “expanding the wealth.” Council Member Steve Conaway reminded the Council that the downtown area generates money for the City through filming and how important it is to keep the charm which attracts tourists to Fillmore. Conaway stated, “If funds were unlimited all would be fine, but we’re limited” adding that if the money is spread too thin it will be lost. Brian Sipes had concerns over the maintenance of the businesses receiving the grants and asked if there could be a clause that those receiving the grant would sign stating, “We intend to keep the building in pristine condition.” Mayor Gayle Washburn stated “I agree with Steve” and even though our redevelopment area does extend quite a bit and there is blight, our downtown should be our focus. Council Member Walker asked if the name of the program could be changed to Central Storefront Rehabilitation Program, which would direct the funds to the downtown area. After a great deal of discussion, the council then asked how much money was now left in the program to give out in grants. They were informed that this year the program was budgeted with $36,000 and most of the funds having already been given out leaving a remaining balance of just $10,000. At that point the Council realized there was no sense in discussing expanding the area with so little funds left. The Council decided to limit the funds to Central Avenue by a vote of 3 to 2, with Conaway, Walker and Washburn voting Yes and Brooks and Sipes voting No. An employment extension was approved for the City Manager’s assistant Linda Pappas (Diaz) whose hours will reach the 960 limit in early March. Diaz is a temporary, part-time worker on a wage-only position. Originally Diaz was to stay until the new Deputy City Manager recruitment was completed. However, because filling the Deputy position on a permanent basis has been placed on hold, Diaz was asked to continue in the post. The resolution passed on a vote of 4 to 1 with Conaway being the only No vote. A proclamation was presented recognizing outgoing Planning Commissioner Diane McCall who served for one and a half terms, and a presentation by Bruce Stenslie the President/CEO of Economic Development Collaborative of Ventura County. Stenslie’s company offers loan programs for existing and new businesses that may not qualify for conventional loans. An item that was not on the agenda was an introduction of Ventura County Sheriffs Captain Monica McGrath who will be relieving Captain Tom Hagel in less than two months. McGrath is presently the Assistant Chief of Camarillo. |