The approximate $25 million 2009-10 Redevelopment Agency budget was approved on Tuesday night and will take affect July 1, 2009.
Three projects, besides carry over projects, that received funding were the purchase and demolition of first street bars, the construction of Carnegie Arts Community Center, construction of a water feature at Columbia Park, and the potential Joe Debely Stadium Track & Field renovation.
The purchase and demolition of first street bars and construction of downtown parking is to be funded with $2 million in bond money.
The construction of a water feature at Columbia Park will be funded by $200,000 in RDA monies and $200,000 in Community Development Block Grants.
The construction of the Carnegie Arts Community Center received a hold on $3 million in funding out of the RDA tax increment monies. The Carnegie project is contingent on an ongoing operational and maintenance plan. Alternatives to operate the building will be brought back to the Turlock City Council after any and all parties interested in participating create at least three options for Council to consider.
The Joe Debely Stadium Track & Field renovation received an earmarked $2.8 million of tax increment funding. There are many factors associated with this project. Officials of the Turlock Unified School District have stated that the City of Turlock must offer the funds and then dialogue would begin on whether they can and will accept the funding. Issues with potential future funding and a joint facility agreement are included in the factors of whether or not this project will be feasible for both parties.
The Turlock City Council had to at least “reasonably allocate” 85% of the $23 million in bond proceeds within 3 years of the August 2006 issuance.
City staff made a couple cautionary notes to Council regarding budget projections.
The $6.2 million tax increment for 2009-10 is an estimated tax increment based on educated guess of what we think. The estimate is $2 million less than last year. Generally the tax increment pays for ongoing expenses of the agency such as rent, utilities, IT support, administrative work, graffiti abatement work, etc.
Another note was that the State of California may take a $698,000 loan from our RDA (along with taking loans from all RDAs in the state). The California Redevelopment Association was successful in challenging the state’s grab of monies in court. The State of California is appealing the court ruling.
Some of the large expenditures from tax increment are related to the WISP (Westside Industrial Specific Plan) and new Public Safety Facility.