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CDA Resolution 89-7COMMUNITY DEVELOPMENT AGENCY
RESOLUTION NO. 89- 7
A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE
CITY OF GILROY ADOPTING RULES FOR BUSINESS TENANT
PREFERENCE AND OWNER PARTICIPATION AND AUTHORIZING
TRANSMITTAL OF SAME TO THE CITY COUNCIL OF THE CITY OF
GILORY
WHEREAS, pursuant to California Community Redevelopment
Law, rules for owner participation and business tenant-
preferences must be provided for each redevelopment project
area; and -
WHEREAS, the Community Development Agency of the City of
Gilroy ("Agency") staff has prepared Rules for Business
Tenant Preference and Owner Participation (the "Rules") for
the City of Gilroy Community Redevelopment Project Area, a
copy of which is attached hereto as Exhibit A and by this
reference incorporated herein.
BE IT NOW THEREFORE RESOLVED:
1. That the Rules are hereby adopted for the aforesaid
Project Area.
2. That copies of such adopted Rules shall be
transmitted by the Deputy Executive Director of the Agency to
the City Council of the City of Gilroy for its review prior to
a hearing on the adoption of the City of Gilroy Community
Redevelopment Plan.
RESOLUTION NO. 89 - 7 -1-
Passed and adopted this 17th day of April, 1989 by the
following vote:
AYES: AGENCYMEMBERS: HALE, KLOECKER, PALMERLEE, VALDEZ and
MU S SALLEM.
NOES: AGENCYMEMBERS: None
ABSENT: AGENCYMEMBERS: GAGE and HUGHAN.
APPROVED:
Larry~MuSsallem, Vice Chairperson
ATTEST:
~~*' Ag~~ry
~ Stein~etz,~ '
o4/o5/89
BO47A/B49702
RESOLUTION NO. 89 - 7 -2-
EXHIBIT A
RULES FOR BUSINESS TENANT PREFERENCE
AND OWNER PARTICIPATION
IN THE CITY OF GILROY
COMMUNITY REDEVELOPMENT PROJECT AREA
COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF GILROY
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I. POLICY OF THE AGENCY
The California Community Redevelopment Law requires that
the Community Development Agency of the City of Gilroy '(the
"Agency") extend reasonable preferences to persons who are
engaged in business in the City of Gilroy Community -
Redevelopment Project Area (the "Project Area") to re-enter in
business within the Project Area if they otherwise meet the
requirements of the City of Gilroy Community Redevelopment
Plan (the "Plan"). The Community Redevelopment Law further
provides that the owners of property within the Project Area
boundaries be given the reasonable opportunity to participate
in the Project provided such participation is consistent with
the requirements and goals and objectives of the Plan.
It is the policy of the Agency to encourage the
participation of property owners and businesses within the
Project Area, as such participation is necessary if the
redevelopment process is to be successful in revitalizing the
proposed Project Area.
It is anticipated that the Plan to be adopted by the City
Council of the City of Gilroy will provide for limited
acquisition of certain real property within the Project Area
pursuant to those guidelines, conditions and requirements set
forth in the Plan. It is the policy of the Agency to minimize
acquisition if at all possible, and therefore the Agency's
-2-
policy of encouraging participation of property owners and
businesses within the Project Area shall be vigorously
pursued.
To that end, the Agency has established basic rules to
implement business preferences and owner participation within
the Project Area.
II. RULES TO IMPLEMENT PREFERENCES TO DISLOCATED BUSINESSES
A. Names and addresses of all businesses which are
displaced by Agency activities within the Project Area will be
maintained by the Agency to assist redevelopers in tenant
selection for space within the Project Area.
B. Ail land disposition documents related to the Project
Area shall contain a provision indicating the Agency's
preference for dislocated businesses and require the
redeveloper to extend reasonable preferences to dislocated
businesses which desire to remain or return to the Project
Area, provided that the relocated business conforms to the
requirements of the Plan.
C. At such time as third party redevelopers are in a
position to seek business tenants for new developments within
the Project Area, the Agency shall cause notice of such space
to all businesses relocated from the Project Area and shall
-3-
offer reasonable non-financial assistance to such businesses
as may be necessary to help secure the desired relocation.
III. RULES TO IMPLEMENT OWNER PARTICIPATION
A. Development of Multiple Parcels by Master D~veloper
1. The Agency may determine, in its reasonable
discretion, by resolution, that it is in the best interest of
the Project Area that several parcels be assembled and
developed by a single developer (a "master developer") as a
unified development. Such determination may be made at the
Agency's own direction or in response to an application by a
property owner to become a master developer. Any individual
or other entity may apply in writing to the Agency to become a
master developer. The Agency shall give the record owners of
all affected parcels ten (10) days written notice and the
opportunity to be heard by the Agency prior to the proposed
adoption of a resolution determining that several parcels are
to be assembled and developed by a master developer.
2. Upon determination that several parcels will be
assembled and developed as a unified development, the Agency
shall notify the owners of all affected parcels of such
determination and shall invite the owners to submit proposals
to become the master developer. In its discretion, the Agency
-4-
may also invite non-owner entities to submit proposals to
become the master developer.
3. In soliciting proposals, the Agency shall-
establish criteria for master developer selection which, in
the Agency's reasonable determination, are appropriate to the
size, scope, character and quality of the envisioned
development. These selection criteria may include without
limitation, as appropriate: the nature and quality of the
proposed development; the financial capability of the
prospective master developer; the technical and professional
quality of the prospective master developer development team,
including architects, engineers, contractors, marketing
consultants and others; and the record of experience of the
prospective master developer in completing other projects of
comparable size, scope and complexity.
4. The Agency shall select a master developer
according to the selection criteria established pursuant to
subparagraph III A 3 above based on the proposals submitted by
prospective master developers. In reviewing proposals that
meet the minimum standards established by the Agency for
selection, the Agency shall give such preference as it deems
appropriate under the circumstances to existing owners of one
or more of the parcels that will be part of the unified
development. If, in the Agency's reasonable determination, no
proposal meets the minimum standards for selection, the Agency
-5-
may reject all proposals and take such actions as it deems
appropriate to solicit additional proposals, modify its
concept for unified development of the affected parcels, or
otherwise fulfill the objectives of the Plan and these ~ules
for such parcels.
5. Following selection of a master developer, the
Agency and the master developer shall negotiate and execute,
if possible, a master development agreement setting forth the
rights and obligations of the Agency and the master developer
with respect to the unified development of the affected
parcels in accordance with the Plan. If a master development
agreement cannot be executed within the time established by
the Agency, the Agency may terminate negotiations and take
such actions as it deems appropriate to negotiate with another
qualified developer, solicit additional proposals, modify its
concept for unified development of the affected parcels, or
otherwise fulfill the objectives of the Plan and these Rules
for such parcels.
6. Once the Agency has determined that several
parcels are to be assembled and developed by a master
developer, it may acquire such parcels if the Agency
determines such acquisition is in the interest of the Project
Area. The owners of property acquired by the Agency prior to
selection of a master developer shall be entitled to submit a
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proposal for development of the several parcels that will be
assembled.
B. Development of Individual Parcels by Existing ~wner
Provided that the Agency does not determine, in-its
reasonable discretion, by resolution, that it is in the best
interest of the Project Area that a particular parcel be
assembled with other parcels and developed by a master
developer as part of a unified development, then that parcel
may be developed by its existing owner in accordance with the
rules set forth below.
1. Each parcel in the Project Area shall be
considered to conform to the Plan unless and until the Agency
has determined by resolution that such parcel does not conform
to the Plan. A determination of non-conformance may be made
by the Agency at its own direction or in response to a request
for a determination regarding conformance by a property owner
in the Project Area.
2. If the Agency determines a parcel does not
conform to the Plan, the owner of such parcel shall be
required to enter into an owner participation agreement with
the Agency pursuant to the requirements of subsection III B 4
below.
-7-
3. Agency has made no de'~mination of non-
conformance with respect to a parcel, the owner of such parcel
may continue ownership without an owner participation
agreement subject to the limitations set forth in the
following sentence. In the event (a) the Agency makes a
subsequent determination that the parcel does not conform to
the Plan, (b) the owner intends to construct any additional
improvements or substantially alter or modify existing
structures on the parcel, or (c) the owner intends to acquire
additional real property within the Project Area, then the
Agency may require such owner to enter into an owner
participation agreement with the Agency pursuant to the
requirements of subsection III B 4 below.
4. If a property owner is required to enter into an
owner participation agreement with the Agency pursuant to the
provisions of subsections III B 2 or III B 3 above, the Agency
shall notify the property owner in writing of such a
requirement. The property owner may then become an owner
participant by meeting the following requirements:
(a) Ail participants must agree to record or
permit to be recorded on their property, a declaration of
restrictions which is designed to protect the future use of
the land as being consistent with the Plan.
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(b) Within sixty (60) days of the notification
described above, the owner shall meet with Agency staff to
discuss necessary requirements to bring the owner's property
into conformity with the Plan.
(c) Within ninety (90) days thereafter,-the owner
shall submit preliminary improvement plans and a general
statement of plans for financing such improvements for review
by the Agency.
(d) The Agency may reasonably extend these time
periods when it is in the best interest of the Project Area to
do so.
(e) Upon acceptance of the plans described in
subdivision (c) above, as revised or corrected if necessary,
the owner shall enter into an owner participation agreement
with the Agency to assure the orderly development of the
required improvement to the property.
5. If an owner who is required to enter into an
owner participation agreement fails or refuses to enter into
such agreement pursuant to subsection III B 4 above, or if
such owner fails to perform any of the owner's obligations
under an executed agreement, the owner shall, at the sole
discretion of the Agency forfeit his/her rights to
participation under the Plan and these Rules. In addition,
-9-
failure by an owner to participate as required by the Plan and
these Rules may cause the Agency to seek any and all remedies
available to achieve such participation and may subject the
property to acquisition by the Agency if the Agency determines
that it is in the interest of the Project Area to undertake
such acquisition; provided, however, that the Agency-may
exercise its powers of eminent domain only in the
circumstances and manner otherwise authorized by the Plan.
OPRULES/B49702
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I hereby certify that the foregoing is a full, true and correct
copy of a resolution duly passed and adopted by the Community Development
Agency of the City of Gilroy, California, at a meeting thereof, held on the
17th day of April, 1989.
(Seal)