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REDEVELOPMENT AGENCY AGENDA ITEM NO. 05

Meeting Date: September 10, 2002

Subject/Title: Discussion of and Direction to Staff on the Proposed Redevelopment Agency’s Business Relocation Assistance Program

Submitted by: Howard Sword, Economic Development Director
Gina Rozenski, Redevelopment Analyst

Approved by: John Stevenson, Executive Director


RECOMMENDATION 
Engage in discussion and provide direction to staff on the proposed Brentwood Redevelopment Agency’s Business Relocation Assistance Program for businesses currently located within the Agency’s Redevelopment Project Areas and interested in voluntary relocation to Sunset Industrial Complex.

PREVIOUS ACTION
None.

BACKGROUND
One of the reasons for the recent adoption of a Plan Amendment to the North Brentwood Redevelopment Plan was to add the Sunset Area for the purpose providing appropriately zoned land for voluntary relocation of existing incompatible and non-conforming industrial businesses along Brentwood Boulevard. The effort to eliminate the existing conditions of blight and prevent the continuing decline and stagnation of the area is intended to provide opportunities to attract private investment, promote economic stimulus, and redevelop areas to current standards and zoning requirements. The Brentwood Redevelopment Agency wishes to implement a strategy to provide assistance to businesses that may be interested in voluntarily relocating to the Sunset Industrial Complex.

In accordance with the approved Reimbursement Agreement between the City and Agency, in which the Agency agreed to loan $3,000,000 to the City for infrastructure improvements at Sunset Industrial Complex, the City agreed to reserve 6.5 acres in the Complex for potential relocation purposes.

Attached are draft program guidelines for the Agency’s review and discussion. Rather than narrow and restrictive methods to implement the assistance program, staff suggests a flexible and comprehensive program that includes several techniques. A tool box of strategies and methods to provide assistance and incentives for voluntary relocation while motivating redevelopment efforts at the vacated sites will provide the intended flexibility for the program. 

FISCAL IMPACT
During this phase of crafting guidelines for the program, there are no financial impacts.

Attachment: Draft Guidelines for the Business Relocation Assistance Program



BRENTWOOD REDEVELOPMENT AGENCY

BUSINESS RELOCATION ASSISTANCE PROGRAM

FOR BUSINESSES CURRENTLY LOCATED WITHIN THE AGENCY’S
REDEVELOPMENT PROJECT AREAS AND INTERESTED IN
VOLUNTARY RELOCATION TO SUNSET INDUSTRIAL COMPLEX

August 2002
D R A F T


I. INTRODUCTION

The Brentwood Redevelopment Agency’s Merged Redevelopment Project Areas (Brentwood “Downtown” and North Brentwood) continue to suffer from physical, economical, environmental and social problems that cannot be remedied by private enterprise acting on its own. Specifically, areas along the Brentwood Boulevard corridor in North Brentwood Project Area, and other pocket areas throughout the Merged Redevelopment Project Areas, contain incompatible, non-conforming, and/or blighted business and buildings that are industrial in nature. Many of these businesses are incompatible with the adjacent land uses and are non-conforming with the zoning designations that are applied to the properties. Such conditions prevent and hinder the economic development of parcels and land uses, and, in turn, cause depreciated or stagnant property values, impaired investments, business vacancies, low lease rates, dilapidation and deterioration of buildings, and abandoned or under-utilized buildings. These conditions culminate in the Project Areas’ inability to attract private investment, develop to current standards, and improve the quality of life for residents and workers in the community.

In response to these conditions, the Brentwood Redevelopment Agency shall establish a Business Relocation Assistance Program to implement the strategy and mechanism to voluntarily relocate existing incompatible and non-conforming industrial businesses. Retention of these industrial-type businesses is important to the City of Brentwood. The Agency intends to aid the voluntary relocation of these businesses to the Sunset Industrial Complex through a business assistance program. The relocated businesses will then conform to the “Industrial” zoning designation of Sunset Industrial Complex, and further, allow for redevelopment and reinvestment of a conforming, compatible and better land use of the existing sites. The Sunset Industrial Complex will serve as the primary and key element in the planning efforts for the Business Relocation Assistance Program and to foster effective redevelopment throughout the Project Areas. The primary purpose of adding the Sunset Area to the North Brentwood Project Area was to eliminate existing conditions of blight and prevent the continuing decline and stagnation through public investment and the attraction of new private sector investment. 

It is the intention of the Brentwood Redevelopment Agency to implement the Business Relocation Assistance Program to achieve the goals and objectives of the Merged Redevelopment Plans in a manner consistent with the Community Redevelopment Law, and to promote economic development efforts. 

II. GUIDELINES TO IMPLEMENT THE BUSINESS RELOCATION ASSISTANCE PROGRAM 

A. The Agency’s assistance program for eligible industrial-type businesses may include, but is not limited to, assistance with the acquisition of parcels within the Sunset Industrial Complex (“Site”), relieving front-end development costs such as architectural or engineering costs, assistance with City-imposed development and building fees, fast track processing, or assistance with payment of a portion of annual special assessments imposed on the Site. The assistance program for voluntary relocation to the Sunset Industrial Complex for eligible businesses is a technique intended to provide a reasonable development opportunity, and to act as a catalyst for development at both the Site and the vacated site that would not occur but for this public assistance. It is also the intention of the Agency to contribute to the relocated businesses’ continued success as part of Brentwood’s business community.

B. Businesses eligible for the Business Relocation Assistance Program must be relocating from an existing site in the Merged Redevelopment Project Areas. The Agency will extend reasonable preference to businesses along the Brentwood Boulevard corridor in the North Brentwood Project Area. 

C. Relocated businesses must meet the zoning designations of the Sunset Industrial Complex, and comply with all City planning and engineering conditions of approval, including full payment of development and permit fees unless Agency-assisted.

D. The Agency’s Redevelopment Subcommittee may establish priorities for selection among eligible businesses and shall make a recommendation to the Agency Board, based on its reasonable determination, to extend the Business Relocation Assistance Program to eligible businesses, based on size, scope, character and quality of the envisioned development. Measures that may be considered when determining priorities include, as appropriate and without limitation, the following: 

a. The nature and quality of the proposed development in Sunset Industrial Complex.
b. The financial capability and the record of experience of the eligible business. The eligible business shall be required to submit evidence of necessary equity capital or mortgage financing for the acquisition and development of the Site in a satisfactory form.
c. The level of incompatibility of adjacent uses at the existing site.
d. Whether the existing use is in conformance with zoning designations.
e. The potential of a higher and better use of the existing site which the eligible business vacates, including but not limited to:
1. Increased tax increment.
2. Sales tax generation.
3. Job creation. 
f. If the relocated eligible business is owner of the vacated site, Agency-imposed restrictions on vacated site may be conditioned to motivate the owner to redevelop, such as, but not limited to: 
1. Site preparation of vacated site, including but not limited to, demolition, grading, construction of building pads, environmental clean-up, etc., within a time certain.
2. Re-market the vacated property within a time certain, including application to City for use permit or site design review.
3. Installation of off-site improvements within time certain.
4. Execution of an irrevocable offer to dedicate roadway frontage. 
5. Agreement for Agency’s right to purchase at a fair market value to be determined by a third party appraiser or an option to purchase agreement. 
6. Enter into an Owner Participation Agreement with the Agency for redevelopment of vacated site.
7. Property exchange.
8. Agency loan for acquisition of new Site, in whole or in part, secured by a deed of trust on the vacated site.

E. Relocated eligible businesses to the Sunset Industrial Complex shall be conditioned to have full entitlements and pull building permits for on-site improvements before conveyance of property.

F. The Agency shall have the right, at its option, to repurchase the Site if, after conveyance of title, the eligible business:
a. Abandons or substantially suspends construction of the approved improvements on the Site for a period of three (3) months after written notice of such abandonment or suspension from the Agency.
b. Without the prior written consent of the Agency, sells, assigns, disposes, or transfers any portion of or any interest in the Site prior to completion of the approved improvements. 

G. Relocated businesses shall be restricted to no further subdivision of their Site in Sunset Industrial Complex. This provision is to encourage the expansion of businesses while discouraging land banking and speculation. 

H. The Agency and eligible business shall enter into an Owner Participation Agreement prior to conveyance of the Site, for consideration and approval by the Agency, to set forth the terms and conditions and escrow instructions. 

I. The Business Relocation Assistance Program will terminate 18 months after the Reimbursement Agreement between the City and Agency is approved, unless the Program is extended upon approval by the Agency.

J. Agency staff will promote the Business Relocation Assistance Program to targeted business in the Merged Redevelopment Project Areas, either by personal meetings and communications, informational flyers, or other means of dissemination. 

III. AMENDMENT OF THE GUIDELINES

These guidelines may be modified or amended from time to time by the Agency at any regular or duly called special meeting, provided, however, that no such amendment shall retroactively impair the rights of eligible businesses who have executed an Owner Participation Agreements with the Agency


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