BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1791|
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THIRD READING
Bill No: AB 1791
Author: Monning (D)
Amended: 6/22/10 in Senate
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE : 3-1, 6/16/10
AYES: Kehoe, DeSaulnier, Price
NOES: Aanestad
NO VOTE RECORDED: Cox
ASSEMBLY FLOOR : 50-15, 4/29/10 - See last page for vote
SUBJECT : Redevelopment: Fort Ord
SOURCE : Fort Ord Reuse Authority
DIGEST : This bill exempts specified territory designated
in the Fort Ord Reuse Plan from being prohibited from
providing direct assistance to a development, if certain
conditions are met.
ANALYSIS :
Existing law:
1. Prohibits a redevelopment agency from providing direct
assistance to specified projects within a project area,
including a parcel of land of five acres or more that
has not previously been developed for urban use and
will, when developed, generate sales tax that is not
CONTINUED
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attributed to either office, hotel, manufacturing, or
industrial uses unless there is an enforceable agreement
to do so prior to January 1, 1994.
2. Authorizes the Fort Ord Reuse Authority (FORA) to
establish the Redevelopment Agency of Fort Ord (RAFO),
the jurisdiction of which includes the territory of the
former Fort Ord Military Base.
3. Specifies that RAFO may not create a project area in any
area which overlays a project area which has been
created by a city or the county.
4. Provides for the distribution of tax increment moneys
received by a redevelopment agency.
5. Requires that all redevelopment plans and implementation
plans prepared in conjunction with, or operation of, a
project area, including updates, amendments, and
modifications be certified by FORA as to their
consistency with the Reuse Plan before those plans or
amendments may become effective.
6. Specifies that the assessment roll last equalized prior
to the date FORA adopts the Fort Ord Reuse Plan or the
effective date of the ordinance approving a
redevelopment plan for a specific area within Fort Ord,
whichever occurs first, is to be used as the base year
assessment roll for all project areas adopted within
Fort Ord. In order to accomplish this provision, the
Reuse Plan, if adopted first, is deemed to be the
redevelopment plan for the base.
7. Authorizes the waiver of the agency's Low and Moderate
Income Housing Fund deposits for up to five years upon
an annual finding that the vacancy rate for rental
housing affordable to lower-income households is six
percent or greater.
8. Authorizes the agency to additionally waive one-half of
the required 20 percent set aside annually for the
ensuing five years, provided the finding of a six
percent affordable housing vacancy factor continues to
be made.
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9. Exempts RAFO from the requirement that barracks
demolished or removed from within the territory of Fort
Ord are replaced.
10.Authorizes FORA and the cities and county to use the
federal environmental statement for the draft of the
state Environmental Impact Report.
11.Allows FORA to use redevelopment revenues to finance
infrastructure facilities owned and operated by the
California State University and University of
California.
12.Specifically states that all provisions of the Community
Redevelopment Law apply to military base conversion
redevelopment agencies.
This bill exempts specified territory in a redevelopment
project area within Fort Ord from the state law that
prohibits redevelopment officials from providing direct
assistance to the development of five acres or more which
had not been developed for urban uses and which will
generate sales tax revenues.
For territory to qualify, FORA's Final Base Reuse Plan, as
the plan existed on January 1, 2010, must designate the
territory as a:
Planned development mixed-use district.
Business park with light industrial, office, and research
and development mixed uses.
Regional retail space.
Before a redevelopment agency can use this exclusion, this
bill requires the agency to adopt a resolution which finds
that:
Its community has adopted a general plan housing element
which the Department of Housing and Community Development
has determined substantially complies with state law.
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For the past three fiscal years, the agency has not been
included by the State Controller's Office on a list of
redevelopment agencies that have not corrected major
audit violations.
The agency has not accumulated an excess surplus in its
Low and Moderate Income Housing Fund.
Comments
The end of the Cold War forced the Pentagon to adjust to
new geopolitical realities. Federal officials closed or
realigned nearly three dozen military bases in California.
To coordinate the transition of the former Fort Ord
(Monterey County), the Legislature created FORA to adopt a
Fort Ord Reuse Plan. The County of Monterey and the cities
that cover the former base must conform their general plans
and zoning to FORA's reuse plan
(SB 899 [Mello], Chapter 64, Statutes of 1994). FORA
adopted its Final Base Reuse Plan in 1997.
To accelerate the redevelopment of former military bases,
legislators passed several bills, including special
legislation for the former Fort Ord. FORA can establish
the RAFO with its own redevelopment project areas.
Alternatively, the redevelopment agencies established by
the County of Monterey and the cities that cover the former
Army base can set up their own redevelopment project areas
(SB 1600 [Mello], Chapter 1169, Statutes of 1994).
The Final Base Reuse Plan for Fort Ord lays out the future
land uses for the 45-square mile former Army base,
including areas for housing, commerce, recreation, public
uses, and open space. Of particular interest is the
development of approximately 60 acres near the former
base's main gate as a "life-style regional retail center."
However, FORA and local officials point out that because
this property is not "predominantly urbanized,"
redevelopment officials cannot provide direct assistance to
potential private builders.
At the September 2009 joint hearing of the Assembly and
Senate Local Government Committee, FORA and local officials
told legislators that without redevelopment subsidies, it
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will be difficult to interest private investors in building
the Seaside Main Gate project. Besides the Main Gate
project, there are about 300 other acres of undeveloped
land that the Final Base Reuse Plan designated for land
uses that generate sales taxes. The officials want an
exemption from the state law that prohibits redevelopment
officials from providing direct assistance to sales tax
generating land uses on previously undeveloped property.
According to FORA, this bill allows four redevelopment
agencies to subsidize sales tax generating land uses on up
to 364 acres of Fort Ord's 28,000 acres:
Planned Business &
Neighborhood Regional Visitor
Agency Mixed-Use Industrial Retail
Retail Serving
Del Rey Oaks 0 0 0 0 5
Marina 83 0 0 0 0
Monterey (city) 0 0 0 0 0
Monterey (county) 42 54 0 100
Seaside 60 0 49 61 0
Totals 185 54 49 71 5
None of the four redevelopment agencies that this bill
helps can use the bill's exemption until it meets the
bill's three criteria for (1) adopting a valid housing
element, (2) avoiding major redevelopment audit violations,
and (3) avoiding an excess surplus of affordable housing
money. The City of Marina and the County of Monterey
appear to pass those tests. However, the cities of Del Rey
Oaks and Seaside have not adopted valid housing elements.
Further, Del Rey Oaks' redevelopment agency has serious
audit findings that need correcting. Until local officials
fix their problems, they will not be able to take advantage
of this bill's exemption.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/22/10)
Fort Ord Reuse Authority (source)
Cities of Del Rey Oaks, Marina, Monterey, Pacific Grove,
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Sand City, and Seaside
County of Monterey
Transportation Agency for Monterey County
OPPOSITION : (Verified 6/22/10)
LandWatch Monterey County
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Beall, Blakeslee, Block,
Blumenfield, Bradford, Brownley, Buchanan, Carter,
Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans,
Feuer, Fletcher, Fong, Fuentes, Furutani, Galgiani,
Gilmore, Hall, Hayashi, Hernandez, Hill, Huber, Huffman,
Lieu, Ma, Mendoza, Monning, Nava, Nestande, V. Manuel
Perez, Portantino, Ruskin, Salas, Saldana, Skinner,
Smyth, Solorio, Swanson, Torlakson, Torres, Yamada, John
A. Perez
NOES: Anderson, Conway, DeVore, Emmerson, Fuller, Gaines,
Garrick, Harkey, Knight, Logue, Miller, Niello, Nielsen,
Norby, Silva
NO VOTE RECORDED: Bass, Bill Berryhill, Tom Berryhill,
Caballero, Charles Calderon, Cook, Hagman, Jeffries,
Jones, Bonnie Lowenthal, Audra Strickland, Torrico, Tran,
Villines, Vacancy
AGB:mw 6/22/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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