With a budget of around $17 million and jurisdiction over almost
half of the city, the Hollister Redevelopment Agency owns millions
of dollars worth of land and buildings; some vacant and others
waiting in limbo for the city’s building moratorium to lift.
Hollister – With a budget of around $17 million and jurisdiction over almost half of the city, the Hollister Redevelopment Agency owns millions of dollars worth of land and buildings; some vacant and others waiting in limbo for the city’s building moratorium to lift.
Formed in 1984 to make improvements to designated “blighted” areas, which constitute about 49 percent of the city, Hollister’s RDA invests in affordable housing and other projects intended to benefit the community outside the project area. In the recent past, these projects have included installing a new storm drain system downtown, building the parking garage at Fourth and San Benito Streets, the downtown beautification project, renovation of the Veterans Building and facade improvements to the YMCA and a handful of downtown businesses.
But there are RDA projects waiting for development or renovation. The empty grass field at Fourth and San Benito Streets is the agency’s longest-owned property, having been in the RDA’s hands since 1994, and the city just chose a developer last year to construct a $10 million office/retail/residential space on the lot.
Former City Councilman and RDA board member Cliff Cardoza calls the parking garage constructed behind the 400 block lot in 1995 a “$6 million white elephant.” And current City Councilman Robert Scattini has been criticizing the agency’s possible intent to spend over $2 million on the old Lindeman Chrysler building.
But despite the delays, vacancies and costs associated with RDA projects over the years, the agency’s directors and supporters say it’s still on-track and making progress.
The RDA has a number of projects on the books, and owns or has financed the purchase of eight properties scattered across Hollister. In addition to the more obvious properties, like the empty 400 block or the old Fremont School, it’s also given money to nonprofit organizations such as the Community Services Development Corporation to purchase and renovate apartment complexes on Rustic, East and Seventh streets and Westside Boulevard for low-income families. About 20 percent of the RDA’s budget goes towards affordable housing projects by state law, and the rest is left over for improvements to blighted areas and purchase of properties that look promising.
“Theoretically, you try to find sites where if you buy it, other places will want to come in and develop around it. Our whole job is to spur economic development around these areas,” RDA Director Bill Avera said.
The RDA is looking into buying the former site of Lindeman Chrysler on San Benito Street. While the theory behind the purchase is that it would improve the northern gateway into Hollister and attract new businesses and tourists, some still have doubts.
“I don’t think we should be in the business of buying buildings,” Scattini said. “Let some business people buy it and put their own buildings there. Are we in the real estate business? That’s what I want to know. We’re spending the tax payers’ money, and all this other stuff that we’ve bought is at a standstill.”
Cardoza, who was on the council in 1984 when the city formed the RDA, agreed.
“You have to wonder if you have a basic need associated with the purpose of spending the redevelopment money on these projects, and you’d better make sure that they really do have a purpose and that they are beneficial to the people,” he said.
But Avera and colleague Bryan Briggs said the RDA does carefully consider the purchase of each property, and must get approval from the RDA board, incidentally made up of the five city council members although they are two separate entities, before pursuing any deals.
“Everything they’ve purchased, they’ve had to go through the RDA board, so we’ve approved all of it,” said Mayor Pauline Valdivia, who also heads the RDA board. “Since I’ve been there, I think that they’ve done a pretty good job. I haven’t had any problems with the stuff we’ve been purchasing. One of my major concerns is that whenever we go into this there’s a business plan in place, and right now it’s difficult because of the moratorium. But once that’s lifted I think everything’s going to fall more into place.”
In addition, the RDA doesn’t discourage private business owners from purchasing properties it’s interested in, Avera and Briggs said.
“We don’t necessarily want to compete with private dollars,” Avera said. “Usually we deal with properties that aren’t desirable, where somebody has kind of a piece of junk house that you’re not going to rent out to anyone.”
With the old Lindeman building, they’re considering putting in office spaces and affordable housing among other things in hopes of attracting businesses to the surrounding area and making a good first impression on tourists driving into Hollister. More tourism and more businesses mean more revenue for the city and the RDA itself.
The RDA makes its money through tax increments, Avera and Briggs explained. When the RDA was formed in 1984, the value of all of the blighted properties identified by the city was around $183 million. As the value of those properties go up thanks to RDA help and the properties are sold, the RDA gets a portion of the property tax. Today, the last assessed value of the blighted area properties was about $1 billion.
“It’s really the only way cities can keep property taxes in the city,” said Briggs. “We’ll recoup any investment we’ve made five-fold in increased property value.”
Jessica Quandt covers politics for the Free Lance. Reach her at 831-637-5566 ext. 330 or at jq*****@***********ws.com.
