DRIVING A STRONG ECONOMY COMMITTEE

Report  

October 27, 2003

 

 

Members Present:         Chair Forrest Williams, Vice-Chair Terry Gregory, Councilmember Chuck Reed, Councilmember Judy Chirco

 

Staff Present:                Jim Holgerson, Paul Krutko, Ed Moran, John Weis, Deborah Nelson, Leslye Corsiglia, Norberto Duenas, Don Ludwig, Laurel Prevetti 

The meeting was convened at 1:32 p.m.

 

1.                  Report on the Business Area Update (Office of Economic Development & Redevelopment Agency

 

Paul Krutko, Director, Office of Economic Development (OED), John Weis, Deputy Executive Director, Redevelopment Agency (Agency) and Deborah Nelson, Director of Neighborhood and Business Development, Redevelopment Agency, presented this staff report. Staff provided an overview of the Neighborhood Business District (NBD) program that was initiated in 1982 to help reverse the gradual decline of some of the older strip commercial areas which serve as central business districts to local neighborhoods.  Recent accomplishments and activities were reviewed for the following projects:

·        The Alameda

·        Alum Rock Avenue

·        East Santa Clara Street

·        Japantown

·        Lincoln Avenue

·        Monterey Corridor

·        Story Road

·        West San Carlos

·        Willow Street

·        Neighborhood Business Clusters

-         Union Foxworthy and Union Camden Facades

-         Union Foxworthy Streetscape

-         Bascom Station and Fruitdale Station Studies Design

 

Additional support to businesses was provided through a business-training seminar entitled, “Doing Business in Tough Times”.  The Agency also hosted the International Council of Shopping Centers (ICSC) “Idea Exchange” which attracted over 250 retail professionals and facilitated a Small Business Opportunity Program seminar that provided assistance information to more than 250 small business owners. Economic development strategies were also implemented for West San Carlos and Lincoln Avenue in collaboration with OED. 

 

Vice-Chair Gregory asked if the expenditures detailed for the Monterey Road streetscape projects were already completed. Staff responded that most of the projects were completed, and there was approximately $2.5 million remaining for the median island improvements. Vice-Chair Gregory asked for the definition of “Dev Inc” on the Story Road attachment. “Dev Inc” is an acronym for Development Incentives, which represents money spent on the Mi Pueblo project and for the cost of the strategy plan completed in 1997.  Vice-Chair Gregory asked for the boundaries of the Story Road Business Association. Staff responded the association recently expanded and would provide a copy of the association’s amended map boundaries. Vice-Chair Gregory inquired on the status of creating a business association in the Monterey/Senter Road area. Staff responded local businesses could create an association at anytime. Staff can assist with organizing new associations and helping them become self-sustaining. Beyond internal organizational assistance, no ongoing funding is available.  Staff agreed to review the feasibility of planning an event to provide information of city services to the Monterey/Senter Road business area.

 

Vice-Chair Gregory asked what the next steps were for the Bellevue Park project and asked if the budget was still available to complete the project.  Staff responded that a final resolution with one last tenant needed to be resolved before demolition, and then construction at the site could begin. Funding remains available for the completion of the project.  Vice-Chair Gregory inquired on the expenditure status for improvements to the Tropicana Market façade. Staff is negotiating with the property owner and tenants, following the recent lawsuit. 

 

Councilmember Reed requested a copy of data on sales taxes and jobs presented with the staff report, and if available, data with statistics back to 1982, to establish a baseline.    Staff responded they would provide this.

 

Upon motion of Vice-Chair Gregory, seconded by Councilmember Reed, the Committee accepted staff’s report “Business Area Update”.

 

 

2.                  Report and Review of the Housing Rehabilitation Program (Housing)

 

Leslye Corsiglia, Director of Housing, Norberto Duenas, Division Manager of the Housing Rehabilitation Program, and Don Ludwig, Senior Development Officer, Housing Department, presented this staff report. After the City approved rebudgeting actions for the Redevelopment Agency and the FY 2003-04 Budget was approved, a total of $9.04 million is available for this year, with $6.74 million available for general rehabilitation, mobile home rehabilitation, and paint grants, and $2.3 million in 80% Redevelopment Agency funding available for Strong Neighborhood Initiative Exterior Grants. Applications have been reviewed and prioritized by urgency of need.  Staff estimates that the program will assist a total of 425 households and is currently considering a number of policy recommendations to respond to the high demand and limited resources.  During FY 2002-03, program highlights were:

·        An increase of 60 projects over the previous year

·        579 residential units were assisted under the Paint Grant Program

·        Senior citizens represented approximately 37% of the clients in the program

·        93% of the grants were to low income households

 

Staff also reported that it was able to assist homeowners with guidelines for rehabilitating older and historical homes. Staff is actively pursuing other avenues in finding outside funding, to maximize the programs goals.

 

Vice-Chair Gregory asked if a report was available by district, showing the number and type of rehabilitation projects was completed and asked what kind of outreach is provided to mobile home parks. Staff responded that they can provide a report by district and that outreach to mobile homes is not generally done because the State regulates mobile homes.  The State is aware of the City’s program and refers homeowners directly to the City.  Presentations are done at the request of mobile home park associations but due to the budget shortage, active marketing is not being done. Vice-Chair Gregory inquired if there were any performance measures in place. Staff responded that the number of projects completed, especially grants for emergency purposes to ensure the health and safety of homeowners is the key measure.  Homeowners are surveyed upon completion of work. Vice-Chair Gregory asked if the program was serving the most needy.  Staff responded that yes, the majority of clients are low income.

 

Councilmember Reed suggested that staff should consider how the money is to be spent when considering revised policy guidelines. Councilmember Reed asked what were some typical types of mobile home rehabilitation requests. Staff responded the maximum amount of a grant is $12,000 and typical requests would be for new roofs, replacement of the skirting or decks around a mobile home, replacement of heating units, and requests to install handicap access.

 

Councilmember Chirco suggested applicants could be awarded on a sliding scale basis, based on their income. Staff responded they would take this into consideration.

 

Chair Williams asked what the turnaround time was for an emergency grant. Staff responded that high priority is given to emergencies. For example it is possible to provide assistance in instances where a furnace fails without a formal application as long as the applicant qualifies. 

 

Upon motion of Councilmember Reed, seconded by Vice-Chair Gregory, the Committee accepted staff’s report “Review of the Housing Rehabilitation Program”.

 

 

3.                  Update Secondary Units (Housing)

 

Leslye Corsiglia, Director of Housing, and Laurel Prevetti, Deputy Director of Building, Planning and Code Enforcement, presented this report. Staff last updated the Committee on August 25, 2003.  At that time the Committee directed staff to review the City’s 1984 findings and recommend the types of changes that would need to be made to update the findings to continue to limit secondary units. Staff was also directed to provide the Committee more details about the issues that would need to be addressed for the City if it were to adopt a policy to allow the permitting of secondary residential units. Some considerations for the requirements would be minimum lot size, parking availability, that the main unit be owner occupied, impact on local public facilities and the influx of additional cars on residential streets.

 

Councilmember Reed stated that the ordinance should be structured so that a minimum number of units could be created each year. Councilmember Reed asked how garage conversions fit into the ordinance. Staff responded that presently the zoning code does not permit any new garage conversions, but will be a consideration within the draft ordinance. 

 

Vice-Chair Gregory stated that the creation of units would not occur if the ordinance were written in such a way, that no owner could meet the minimum requirements. Staff responded that there are innovative ways to create units to meet minimum requirements and they acknowledge that drafting the ordinance must not be exclusionary. Vice-Chair Gregory asked if any additional public outreach was planned and if so, requested a copy of outreach plan. Staff replied once the ordinance is drafted an intense public outreach will be delivered to the community. All outreach will be done prior to Council consideration to approve the ordinance.  Vice-Chair Gregory asked that the recommendation of this staff report be amended to read as follows; ‘…direct staff to bring back parameters to present to Council for a proposed ordinance to allow for the construction of new secondary units in San Jose’ eliminating the direction for the Committee to direct staff to ‘draft an’ ordinance.

 

Councilmember Chirco agrees that the ordinance should contain structure that creates quality living space and address the need for additional living units, even if they are in minimum numbers per year.

 

Phyllis Ward, spoke on behalf of the Affordable Network addressing the desire that the ordinance is written to allow the maximum number of units to be approved.

 

Betty Feldheym, spoke on behalf of the Interfaith Council stating that council should approve and pass the ordinance.

 

A member of the audience, William Garbett, stated that additional living space for extended family or domestic help would be good.

 

Upon motion of Councilmember Reed, seconded by Vice-Chair Gregory, the Committee accepted staff’s report, “Update Secondary Units” with the amended wording for the report recommendation.

 

4.         Discussion on the sign ordinance for High-rise buildings (Planning, Building & Code Enforcement)    

 

            Laurel Prevetti, Deputy Director, Planning, Building and Code Enforcement, presented this staff report. As a result of the Getting Families Back to Work effort, staff has been directed to reduce and simplify regulations for signage in the industrial and commercial zones. Staff requested to return to the Committee on November 24, 2003 with a recommended ordinance for the committee’s consideration and approval.

 

            Vice-Chair Gregory asked staff to explore the possibility of allowing one roof and one skyline sign on the same building.  The proposal discussed two roof or two skyline signs, but not that combination.  Staff responded they would investigate that.

 

            A member of the audience, William Garbett, stated ordinances should apply Citywide.

           

            The committee requests that this recommendation go before the full council as a cross-referenced item, to consider modifications to the sign code.

 

Upon motion of Vice-Chair Gregory, seconded by Councilmember Reed, the Committee accepted staff’s recommendation to return on November 24, 2003 with this staff report.

 

 

5.         Oral Petitions

None

 

 

6.         Adjournment

The meeting was adjourned at 3:10 p.m.

 

Forrest Williams, Chair

Driving a Strong Economy Committee