Second meeting addresses issue
Morgan Hill – Consultant Ernie Glover, who helped draft the city’s plan to collect an additional $333 million for redevelopment projects over 15 years, on Tuesday told a crowd of 40 residents gathered at the Morgan Hill Playhouse that eminent domain would be a “very important tool, if ever needed,” to ensure revitalization along the Monterey Road corridor from the city’s top to bottom.
The remarks were made during a second town hall meeting to address boosting spending limits for the Morgan Hill Redevelopment Agency, a decision that will soon be in the hands of the city council following public hearings at City Hall in November.
City officials at the meeting reiterated the position that eminent domain power might be needed to assemble parcels for larger developments. Officials denied suggestions by one resident that properties had already been slated by the city council for eminent domain.
Garret Toy, director of business assistance and housing services, also said the agency’s proposed eminent domain authority – if approved – could only be used against commercial properties.
Adopted 25 years ago, the redevelopment agency has spent about $250 million on projects such as roads, housing, public facilities and incentives packages for economic development. The agency collects property taxes that would normally go to the county, the city, the local school district and other public entities. The agency shares about 40 percent of its funds with these entities. A report by the Morgan Hill Unified School District shows the agency has provided $1.7 million since 1999 for capital projects.
Currently the redevelopment agency has no eminent domain power. The city, on the other hand, can legally seize private property for projects such as road widening that benefit the public good.
“Most of the bond money from the state for modernization and construction is very minimal. The redevelopment agency is very beneficial for us,” said Bonnie Tognazzini, deputy superintendent of the Morgan Hill Unified School District.
Toy said the city would not use eminent domain to force the sale of private property around town to boost the local economy.
He also said it would have taken the agency too much time and effort to seek eminent domain authority over residential properties, because state law would have called for the creation of a publicly elected committee comprised of business owners, home owners and residents within the proposed project area.
The city council is expected to decide the issue in November. A public hearing at City Hall is scheduled for Nov. 8. Voters in 1999 forced a referendum after the city council approved the last amendment to the redevelopment agency to pay for public facilities such as the city’s new aquatics center and community and cultural center. The referendum passed.
As to economic development, Glover cited a recent report by the California Redevelopment Association that shows 77,000 jobs per year are created by redevelopment agencies statewide.
Toy said there has not been a quantitative analysis to assess the question of how many jobs the agency has created in Morgan Hill. But he said he suspects the agency has powered the local economy by providing funds to lure large companies such as Anritsu and Hospira. He said these companies have acted as “catalysts” to lure others to the city’s business parks.
Residents also questioned the agency’s plan to re-authorize bonding authority to borrow money for projects rather than using a “pay as you go” approach. Prior to 1999, the agency issued $7 million in bonds to pay for projects.
Glover explained that building costs would rise over time just as interest would accumulate on loans.
“It’s largely a philosophical question” that the city’s elected officials would face, Glover said.
RDA’S PROPOSD PLAN
Increase funding by $333 million to complete public infrastructure projects such as: Street improvements and sewers; economic revitalization activities; affordable housing; and downtown improvements such as parking and lighting.
Re-authorize the use of eminent domain for certain commercial properties on a limited basis.
Re-authorize bonding authority to allow the agency to build projects up-front rather than wait to accumulate funds.
The Morgan Hill Redevelopment Agency and the Morgan Hill City Council will hold a joint public hearing Nov. 8, 7pm, in council chambers, 17555 Peak Ave., Morgan Hill. A second hearing may be scheduled before the city council votes on the plan.
Copies of the agency’s proposed plan amendment are available online at www.morgan-hill.ca.gov.
Tony Burchyns covers Morgan Hill for The Times. Reach him at (408) 779-4106 ext. 201 or tburchyns@morganhilltimes.
