1. 1 Strong Neighborhood Initiative Tax Allocation Bond Projects Redevelopment Agency City of Stockton Fire Station Lightin g Community Centers Housin g Librarie s Gap Financing Parks Public Safety Roads

2. 2 Background 2/23/06 – Mayor’s State of the City Address 3/28/06 – Study Session 4/25/06 – Council Update 5/2/06 – Council Update 5/18, 5/22, 5/23/06 – Public Meetings

3. 3 Outreach Advertising in The Record Announcements on electronic reader boards at Fairgrounds and Civic Flyers distributed to community groups Information displayed on Channel 97 Information presented on www.stocktongov.com www.stocktongov.com

4. 4 Meetings South Stockton: –Airport Corridor Team (ACT) –South Stockton Project Area Committee –South Stockton Community Meeting North Stockton: –Kentfield Action Team (KAT) –North Stockton Project Area Committee –North Stockton Community Meeting Midtown: –MAG/MMAT –Midtown Project Area Committee/Community Meeting

5. 5 Presentations Affordable Housing Ad Hoc committee African American Chamber of Commerce African American Roundtable Airport Corridor Action Team Downtown Comeback Club Kentfield Action Team public meeting MAG/MMAT action team Midtown/South Stockton Project Area Committees Miracle Mile Improvement Association Board meeting NAACP PACT Pastors and Ministers Alliance

6. 6 Financing Team Redevelopment Agency Steve Carrigan Director, Economic Development Steve Pinkerton Director, Redevelopment Laurie Montes Director, Housing Department Erin Mettler Housing Department Redevelopment Agency Steve Carrigan Director, Economic Development Steve Pinkerton Director, Redevelopment Laurie Montes Director, Housing Department Erin Mettler Housing Department Tom Lockard Underwriter Stone & Youngberg Tom Lockard Underwriter Stone & Youngberg Lynn Hutchins Agency Counsel Goldfarb & Lipman Lynn Hutchins Agency Counsel Goldfarb & Lipman City of Stockton Mark L. Moses Director, Administrative Services Jim Malberg Program Manager III John Luebberke Deputy City Attorney City of Stockton Mark L. Moses Director, Administrative Services Jim Malberg Program Manager III John Luebberke Deputy City Attorney Steve Melikian Bond Counsel Jones Hall Steve Melikian Bond Counsel Jones Hall Chris Lynch Bond Counsel Jones Hall Chris Lynch Bond Counsel Jones Hall Brian Quint Disclosure Counsel Quint & Thimmig LLP Brian Quint Disclosure Counsel Quint & Thimmig LLP

7. 7 Tonight’s Actions  Adopt resolutions authorizing the issuance of three series of bonds: 1. Series A: Tax Exempt 2. Series B: Taxable 3. Series C: Housing

8. 8 Tax Exempt vs. Taxable Projects 90% Tax Exempt Projects –Projects carried out by public entities e.g., Van Buskirk Community Center renovation and Fire Department Company 3 relocation 10% Taxable Projects –Projects that may be carried out by private entities that are subject to property tax and sales tax e.g., property south of Rancho San Miguel

9. 9 Tax Allocation Bond A bond that is issued by the Agency to implement the redevelopment plan The bond is repaid with future revenues The Agency, NOT the City, bears sole financial responsibility NOT a new tax!!

10. 10 What Is Tax Increment? When a Redevelopment Project Area is established, a Base Year Value (Year 1) is set Base Year Value is the assessed value of property for that tax year Each year after the Base Year, the Redevelopment Agency receives 1% of the growth in assessed value 1% is referred to as Tax Increment

11. 11 Tax Increment Example Example: North Stockton $2.210 B Year 5 Assessed Value ($1.678 B) Less Base Year Value $532 MIncremental Value X.01Multiply by 1% $5.32 MTax Increment received in Year 5

12. 12 Incremental Value Base Year Value $1,677,573,929 Total Assessed Value $2,209,903,098 1% = Tax Increment $5,323,292 (North Stockton) Tax Increment Example RDA Project YearRDA Project Year

13. 13 Projected Gross Tax Increment Revenues & Debt Service Payments YearTax Increment Debt Service Payments 2006/07$17.2 M$3.9 M 2007/08$18.0 M$6.1 M 2008/09$18.9 M$7.9 M 2009/10$19.8 M$7.9 M 2010/11$20.9 M$7.9 M

14. 14 Net Tax Increment Net Tax Increment is gross tax increment less: –County admin. charges –Tax sharing obligations –AB1290 pass throughs (school dist.) –20% housing set-aside

15. 15 Projected Net Tax Increment Revenues & Debt Service Payments Year Net Tax Increment Debt Service Payments 2006/07$10.7 M$3.9 M 2007/08$13.3 M$6.1 M 2008/09$13.9 M$7.9 M 2009/10$14.7 M$7.9 M 2010/11$15.5 M$7.9 M

16. 16 Bond Proceeds (estimated) $114.3 MGross bond $104.0 MEst. Net bond - $24.5 MHousing set-aside ________________________ $79.5 MRDA projects

17. 17 Project Area Funding Project Area South Stockton 38.5% North Stockton 33% Midtown 28.5% Est. RDA Bond Proceeds $30.6M$26.2M$22.7M Est. Net Funding = $79.5M (RDA) +$24.5M (housing)  Housing bond proceeds available citywide

18. 18 Funding Criteria Funds must be used in the RDA Projects must benefit the RDA and help eliminate blight There is no other reasonable source of funding No funding for normal maintenance or operations

19. 19 Funding Criteria Gap funding for project shortfalls Project can be substantially completed within 2 years Leverage bond funds with other available funding sources (grants, state/federal funds, public/private partnerships, etc.) Projects identified as priorities by action teams/ community input Rebuild existing infrastructure –Streets, sidewalks, facilities Bricks and Mortar projects

20. 20 RDA Projects

21. 21 Public Works Projects - Criteria for Prioritization Street repairs –Public Works maintains a list of streets with the most need and a list of neighborhoods for calming Traffic calming –Public Works maintains a list of neighborhoods that have requested traffic calming measures Street Lighting –Replace wood poles with steel poles –Upgrade lighting in Magnolia District –Install lighting where needed

22. 22 Public Works Projects – Criteria for Prioritization Curb/gutter/sidewalk –Backlog of tree root damage and standing water –Handicap ramps installed where none exist –When streets are repaved (as needed) –Install where none exists (former county areas)

23. 23 Recommended Projects – All Project Areas Street Repairs $2,500,000 minimum Park Repairs $1,000,000 minimum Security Cameras $400,000 minimum

24. 24 Street Repairs – $2,500,000 per area (minimum) Repair/reconstruction of heavily damaged or pot-holed streets

25. 25 Repairs to include: Restroom Improvements Picnic Improvements Play Area Improvements Irrigation Improvements Funds will be allocated among the parks dependent upon infrastructure needs. Parks Infrastructure Repairs $1,000,000 per area (minimum)

26. 26 Security Cameras- $400,000 per area (minimum) Located throughout the city at selected locations and monitored by police personnel

27. 27 Recommended North Stockton Redevelopment Projects

28. 28 Recommended North Stockton Projects ($26.2 M) Panella Community Center $8.1M Kentfield beautification $1.5M El Dorado St. widening $4.6M Fire Dept. Company 11 bathrooms $700K Street repairs$3.75MSecurity cameras$500K Curb/gutter/sidewalk$2.0MTraffic calming$250K Street lighting$500K Traffic light preemption $200K Park repairs$1.4M Commercial development $2.6M

29. 29 Panella Community Center New 19,700 s.f. facility (Lorraine/Amaretto) Gym, meeting rooms, police report room $3M grant funds

30. 30 El Dorado St. Widening (Alpine to Bianchi) Widen El Dorado from four lanes to five lanes Priority street project noted in Specific Plan

31. 31 Curb/Gutter/Sidewalk Repairs Repair/install curb/gutter/sidewalk on a priority basis –Backlog of tree root damage and standing water –Handicap ramps installed where none exist –When streets are repaved (not currently done) –Install where none exists (former county areas)

32. 32 Street Lighting Improvements Replace wooden poles with steel poles Install street lights where none currently exist

33. 33 Traffic Calming Improve neighborhood livability and safety by reducing speeds and traffic volumes on local streets Calming measures can include street narrowing, speed bumps, traffic circles, road narrowing, etc.

34. 34 Traffic Light Preemptive System Improves emergency response time Prevents traffic accidents involving emergency vehicles

35. 35 Fire Dept: Bathroom Upgrades Fire Department Company 11 does not have gender neutral locker and bathing facilities. The city currently rents portable trailers to accommodate female bathroom and locker facilities.

36. 36 Kentfield Beautification The Kentfield Action Team recommends a beautification project along March Ln. to improve the rundown appearance of the neighborhood and to improve safety Improve bike trail/ walking trail

37. 37 Recommended Midtown Redevelopment Projects

38. 38 Recommended Midtown Projects ($22.7 M) University Park Community Center $8.0MStreet lighting$1.0M Stribley Park Community Center $4.5MPark repairs$1.0M Fire Department Company 6 rebuild $3.0M Security cameras $400K Street Repairs$2.5M Commercial development $2.2M

39. 39 University Park Community Center Public/Private partnership with the Grupe Co. to develop a first-class community center at University Park

40. 40 Stribley Community Center Renovating to comply with ADA Adding 10,420 sq. ft. of new facility (gym) Enclosing courtyard area $2.5M grant funds

41. 41 Fire Dept: Company 6 Rebuild Company 6 is a converted residence that was built in the 1940’s It has outlived its usefulness and will require extensive upgrades to continue to use The apparatus door is too small to fit the new fire engines and can not be heightened to do so

42. 42 Street Lighting Improvements Replace wooden poles with steel poles Upgrade lighting in Magnolia District Install street lights where none currently exist

43. 43 Recommended South Stockton Redevelopment Projects

44. 44 Recommended South Stockton Projects ($30.6 M) Airport Way Community Center $8.0MPark repairs$1.0M Airport Way Corridor $6.6MSecurity cameras$400K Fire Dept. Company 3 relocation $5.0M McKinley Community Center (design) $250K Van Buskirk Community Center $3.7M Commercial development $3.1M Street repairs$2.5M

45. 45 Airport Way Neighborhood Service Center Three phases $3M from School District Priority ACT project

46. 46 Airport Way Streetscape Beautification Project Airport Way from Charter to Carpenter Will improve streetscape aesthetics Will increase pedestrian circulation Will improve bicycle and vehicle circulation

47. 47 Fire Dept: Company 3 Relocation Company 3 had a new grocery store built across the street from it last year The traffic increase has affected the ability to respond to emergencies in a timely manner

48. 48 Fire Dept: Company 3 Relocation Relocation will allow future development of the site for needed retail services and additional jobs (ACT priority)

49. 49 Van Buskirk Community Center Renovating to comply with ADA Adding 8,600 sq. ft. of new facility (gym) Nearly $1.4M in grant funding

50. 50 McKinley Community Center (design) Renovating to comply with ADA Adding 12,500 s.f. (new gym, multi-purpose) Propose to construct with next bond

51. 51 Project Controls No projects being approved tonight Council/Agency will approve specific projects as they are ready Staff will work from the list of projects to allocate funds Staff will seek Council/Agency approval to deviate from project list Transfers of bond money will not be allowed An annual audit will be conducted

52. 52 Recommended Actions  Adopt resolutions authorizing the issuance of three series of bonds: 1. Series A: Tax Exempt 2. Series B: Taxable 3. Series C: Housing