City of Stockton Budget Committee

Summary of Citizen Comments Received Budget/Finance/Economic Development Committee through March 2, 2009 - Updated March 5, 2009

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Redevelopment/Revitalization

General Fund Loans
- What happened to the $40 million loaned from the General Fund?
Between 1981 and 2004, the Redevelopment Agency received loans from the General Fund. Repayment plans were not adopted at the time of theses loans. The Redevelopment Agency used the funds for various projects that have addressed blight and improved the economic conditions of our city, including, but not limited to, the Cineplex, Arena, Ballpark and many affordable housing units through the Redevelopment Project Areas. The benefits of these loans have been tremendous and will continue to benefit economic development for years.
Downtown Marina

Source of funds and ability to redirect funds
The majority of funding for the Marina project comes from 20 to 50 year low-interest loans from the State and Federal governments. These loans are specifically identified for this project and were secured years in advance. Just over half of the approximate $26 million will be paid back by other federal funding sources (CDBG funds); the net operating revenues of the Marina, over time, are expected cover the future loan payments for the balance of the loan funds. Other funding sources include State of California grants that do not have to be paid back. If these funding sources are not used now, we will lose them and may never be able to put together such a project again. The funds cannot be used for any other purpose.
Status of improvements, timeline for completion – consequences for delaying?
The Marina and Promenade project is scheduled to be completed by the end of 2009. The consequences for delaying or not completing the project are the loss of funds and/or the City would be forced to pay back funds already provided from State and Federal sources.

Operation and maintenance after completion?
- Budget ? (revenues vs. expenses)
- Expense to General Fund
  The Redevelopment Department is currently preparing a Request for Proposal (RFP) seeking a firm experienced in marina operations to manage the facility, once it is completed. Until that time, the Redevelopment Agency has provided start-up funding for operations of the complex to avoid any cost burden to the General Fund. It is anticipated that when all components of this project are up and running the revenue generated will cover the cost of operations and maintenance. A revitalized waterfront will significantly improve the appearance of our city, allow us to access and enjoy the water and promenade area, attract visitors, and boost economic development opportunities. Improving our city for future generations is essential to the economic vitality of our future.
Community of All Nations housing project
- Source of funds and ability to re-direct
  Community of All Nations is funded through Federal and Redevelopment Low and Moderate Income Housing funds. These funds are not available for any other purpose, other than affordable housing
- Timeline for completion – consequences for delaying
  The City is currently working with the developer on the timeline. Amendments to zoning and General Plan designation have recently been approved. The project is moving forward. All affordable housing projects have been impacted by the current national economic conditions.
- Expenses to General Fund?
  Funding for the project does not come from the General Fund; therefore, canceling the project would not add any money into the General Fund.
Paragary’s
- Source of Funds
  - How were funds spent?
    The funding provided to Paragary’s did not come from the General Fund; Redevelopment Agency funds were used to cover the cost of building improvements on the first floor of the Hotel Stockton, including, but not limited to, reinforcing the floor in this Historic building. All improvements will remain with building, no matter who operates the restaurant. The funds were provided through a development loan agreement. Redevelopment funds can be used to enhance business in areas designated as Redevelopment areas. In fact, these funds are restricted and must benefit the area from which the funds originated.
  - Expense to General Fund?
    None of the funding for Paragary’s came from the General Fund. Redevelopment funds cannot be used for General Fund expenses.
  - Revenue generation?
    The revenue generation from redevelopment projects and project areas is the benefit that they bring to an area, e.g., reducing blight, improving safety, increasing the number of people who visit the area. For example, there are now over one million visitors per year to the Cineplex, alone. Those who attend movies or events at the Bob Hope and Arena often dine downtown at local business, which secures jobs for Stockton residents, and generates sales tax revenue for the City’s General Fund.
Airport Way Corridor Redevelopment
- Source of funds for recent acquisition? Timeline and funding sources for acquired properties?
  Redevelopment Agency funds were used for recent property acquisition. Redevelopment funds can be used to eliminate blight and enhance business in areas designated as Redevelopment areas. In fact, these funds are restricted and must benefit the area from which the funds originated.
- Re-sell recently acquired properties to generate revenue and redirect those funds?
  Improvements will take place to reduce and eliminate blight in the area and/or to improve the property for a higher purpose, for example, a fire station or other public facility.

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City Owned Properties and City Contracts

Police and Fire Departments

Ideas to Increase Revenues

Ideas to Reduce Expenses

Miscellaneous


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