FORMATION OF THE RENEWAL ENTERPRISE DISTRICT JOINT POWERS AUTHORITY
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1 FORMATION OF THE RENEWAL ENTERPRISE DISTRICT JOINT POWERS AUTHORITY CITY COUNCIL DECEMBER 4, 2018 David Guhin Assistant City Manager / Director Planning and Economic Development 1
2 HOUSING NEED Actual RHNA Fire 2
3 SONOMA HOUSING GROWTH 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000-4,000-5,000-6, Single Family units Multi Family units 3
4 SONOMA COUNTY MEDIAN HOME SALE PRICES PRE-EXISTING HOUSING CHALLENGES $800,000 $700,000 $600,000 $500,000 $465,000 $489,500 $550,500 $608,000 $681,000 Median home price and rental rate growth exceed wage growth $400,000 $300,000 $316,500 $380, % residential vacancy $200,000 $100,000 $ Culture and history of: Environmental protections Urban separators Preservation of working lands 4
5 IMPACT OF FIRES ON HOUSING Real estate market in transition: 235% increase in buildable lots from 2017 to % fall in single family home listings Trends in rent increases and secondary displacement 600 student enrollment decline countywide Estimated additional loss by end of school year: 1,000 students Poorest residents most impacted 5
6 RENEWAL ENTERPRISE DISTRICT JOINT POWERS AUTHORITY June 2018: Board of Supervisors and City Council approve staff to negotiate a Joint Powers Agreement based on the RED framework Working group formed with County, City and SCTA staff Guidance provided by County and City Build-Rebuild Ad Hoc Committees City Council Ad Hoc Committee: Mayor Coursey Council Member Schwedhelm Council Member Rogers Board of Supervisors Ad Hoc Committee: Supervisor Zane Supervisor Gore Community Partners: Sonoma County Transportation Agency & Regional Climate Protection Agency Sonoma Clean Power 6
7 RED: RENEWAL ENTERPRISE DISTRICT Regionalizes housing production Pools and leverages financing and funding Shares risks and benefits of development Streamlines review and provides confidence in good projects Puts equity, affordability and climate solutions in the center of local economic strategy 7
8 JOINT POWERS AUTHORITY - PURPOSE - Focus housing development in specific geographies Define project criteria for which incentives and streamlined permitting processes are appropriate Pursue new opportunities for public-private partnerships Expand, pool, and leverage public and private financing Explore the most strategic use of publicly-owned land Leverage the regional housing planning tools and resources of MTC/ABAG 8
9 JOINT POWERS AUTHORITY - GOALS - Achieve rebuild goals and unmet regional housing needs Implement General Plans and Specific Plans while honoring community separators and urban growth boundaries Incentivize higher density, infill, and transit-oriented housing in Priority Development Areas, Transit Priority Areas, Designated Opportunity Zones, and Employment Investment Areas Promote zero net energy development and advance climate resiliency Ensure affordability and equity in housing development, and transparency and accountability Improve opportunities for area employers to recruit and retain a skilled workforce 9
10 RED PROJECT PARAMETERS Affordability (rental & ownership) Other TBD Location (PDA, TPA, OZ) Access to Capital Access to Incentives HOUSING, Infrastructure & Community Facilities Criteria Examples - set by JPA - Project Benefits Fund Uses 10
11 JOINT POWERS AUTHORITY - GOVERNING BOARD Years: FOUNDING MEMBERS 4 Elected Officials: 2 County BOS 2 SR City Council 2 + Years: NEW MEMBERS Other cities may join with 1 elected official per jurisdiction 11
12 VOTING JOINT POWERS AUTHORITY - VOTING REVIEW STAFFING - Founding Members 1 vote per representative (2 votes total per jurisdiction) New Members 1 vote per representative (1 vote per each new city) GOVERNANCE REVIEW JPA will hold a public meeting after 2 years from formation Review terms and conditions Discuss amendments to agreement Includes new members STAFFING Initial staffing will be done under contract with member entities or 3 rd parties, including: Executive Director 1 ED who may be an employee of one of the members Treasurer Auditor-Controller-Treasurer-Tax Collector will act as initial treasurer Staff Initial staffing will be provided by City and County staff, including City and County Counsel, CDC, HCS, PED 12
13 Grants FINANCING SB2 Funding Other State Funding Other Financing 13
14 RECOMMENDATION It is recommended by the Planning and Economic Development Department and the Housing and Community Services Department that the Council, by resolution, authorize approval of a Joint Powers Agreement creating a Renewal Enterprise District (RED) through a Joint Powers Authority comprised initially of the City of Santa Rosa and the County of Sonoma to facilitate the development of housing in targeted geographic areas. 14
15 QUESTIONS? 15
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