HomeMy WebLinkAboutBackground ReportATTACHMENT 1
BACKGROUND REPORT
Amortization Overview:
Amortization is setting a period of time for a land use to cease on a certain
specific piece of real estate. Uniform, objective criteria are applied to each
separate land use and property and then an amortization schedule is individually
prepared in consultation with owner/operator of said land use. There is no
financial compensation from the City for amortization of a land use however the
amount of investment in a land use is a key consideration in setting the schedule.
The intent is to achieve compliance with the approved zoning for sites while
allowing business investments to achieve a reasonable rate of return.
Amortization Ranking:
Amortization Ranking does not establish a schedule for amortization. Rather,
ranking places businesses in an order by an objective, uniform weighting of
criteria approved for the process. The City's proposed ranking process numbers
100 — highest to 1 lowest. However, if a business is ranked #100 as a result of
ranking, that does not indicate that business will have the shortest amortization
schedule. Nor does being ranked #1 mean a business would have the longest.
As stated above, an amortization schedule is individually tailored for each
business and property. This individual schedule would be created after the
businesses are ranked based on criteria. Ranking closer to #100 would
designate those land uses/business locations that staff intends to work with first
for purposes of developing an amortization schedule. Staff proposes to work
with two to three businesses for the initial amortization.
The attached report describes in easy -to -understand language the criteria that
are used for ranking, the weighting of each criteria as against the others, and
how the ranking is determined. Staff encourages all those interested to read this
report (available at www.nationalcityca.gov, community development,
redevelopment) or by request. The criteria themselves are based on City Council
Ordinance 2006-2286 and staff input. Weighting for the criteria and direction for
the decision making process using the criteria were considered in light of staff
input, stakeholder interviews conducted on September 27 and 28th, 2010, were
reviewed in individual briefings with the Mayor and Council Members on January
25, 2011, and reviewed and discussed with representatives of the business
community on January 26, 2011.
Community stakeholders interviewed in September, 2010 included:
Environmental Health Coalition staff and volunteers, resident and business
owner Robert "Dukie" Valderrama, resident Ted Godshalk, CDC Executive
Director Brad Raulston, St. Anthony's parish/Dan Diego Organizing Project
representatives, and Sonia Ruan, Principal of Kimball Elementary School. These
interviews assisted staff and the contractors to understand the relative weights
for criteria in the process.
Business stakeholders participating in an interactive presentation and discussion
at the Chamber of Commerce in January, 2011 included Jacqueline Reynoso —
Chamber of Commerce, J.D. Beauchamp — ABB Management, Dante Aguilar —
Dante's Modular Performance, Dixon Le Gros — Westflex, and Dan Greenwald —
Greenwald's Autobody and Frameworks.
During January Mayor and City Council Member briefings, staff was directed to
ensure that business representative comments on the process were considered
and reported on. Business stakeholder input and its impact on the ranking
procedure is addressed on Page 7 and 8 of the Sustainability Partnership report
attached. Certain factors and processes within the ranking procedure were
revised based on business input.
Requested City Council actions:
1. Confirm the procedure, criteria and weights to be used for the ranking
process by accepting and filing this report;
2. Provide direction on next steps:
The next step will be to implement the ranking process and staff is requesting
direction regarding the options below:
✓ Rank non -conforming uses within a three -block radius of Kimball School;
or
✓ Rank all non -conforming uses within the Westside Specific Plan area —
this option was requested during the January, 2011 meeting.
Staff anticipates that it will take approximately three - four months to complete
the ranking, after which the amortization process will commence.