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BACKGROUND REPORT
Public infrastructure improvements are needed to improve the economic viability of
parcels commonly referred to as the National City Swap Meet and RCP site (APN# 562-
321-08) planned for redevelopment in the Redevelopment Plan for the National City
Redevelopment Project. The improvements are designed to improve traffic flow and
access to these gateway sites in the Project Area and are anticipated to cost up to $2.5
million.
In order to complete the projects the CDC and City can decide to cooperate, as is
proposed in this Agreement. The City would implement the project and the CDC would
pay for it through future property tax increment revenues. The Agreement would provide
that the CDC would pledge future property tax increment funds as follows: $830,000 to
be paid in a lump sum at completion of construction and $120,000 annually thereafter in
net increased tax increment (excluding low mod set aside funds and pass through funds
to other taxing entities) up to the actual final construction costs for the project. The City
would take title to the RCP site if an included Option is exercised. Should the City
decide at any point in the future to sell the site to a private developer, a Public Hearing
under Section 33433 of the California Redevelopment Law would be required.
In order to cooperate, the CDC and City must make the following findings:
• The City has received and heard all oral and written objections to the
Agreement, and to other matters pertaining to this transaction, and all
such oral and written objections are hereby overruled;
• The City hereby finds and determines that the foregoing recitals are true
and correct;
• Based on the evidence in the record, the City hereby finds and
determines, with respect to the Projects that are publicly owned and are
located in or contiguous to the Project Area as identified in the
Agreement, that:
(a) Said Projects and the programs and activities associated therewith
are of benefit to the Project Area by helping to eliminate blight within the Project Area or
providing housing for low- or moderate income persons; and
(b) No other reasonable means of financing said Projects and the
programs and activities associated therewith are available to the community; and
(c) The payment of funds by the Commission for the costs related to
said Projects and the programs and activities associated therewith is consistent with the
respective Implementation Plan adopted pursuant to Section 33490 of the CRL.
The resolution authorizing approval of the Agreement would give the City
Manager the authority to sign all documents necessary to carry out and implement the
Agreement, including, without limitation, any security instruments to be recorded against
CDC assets to secure the CDC's obligations under the Agreement, and to administer the
City's obligations, responsibilities and duties to be performed under the Agreement.