Hanford says it wants to stay ahead of the recession, not behind, when it comes to downtown revitalization. Assuming the real estate market may be near the bottom, city officials agreed it's a good time to consider ways to expand the funding base for future improvements in the historic downtown business district.

On Tuesday the Hanford City Council directed the staff to hire a consultant to analyze whether residential neighborhoods and commercial zones surrounding downtown can be deemed blighted and considered for improvements as part of an expansion of the city's downtown redevelopment area.

Expansion of the project area could expand the tax increment base for projects in the downtown core, officials say.

The tax increment financing uses future gains in taxes to finance improvements. Generally speaking, the lower the base-year values, the better.

"The lower the property tax base, the more room for tax increment growth in the future and (so) the greater the opportunity to fund economic development and revitalization projects in aging commercial areas, including the downtown core, in the city," Deputy City Manager Hilary Straus told the council.

Hiring a consultant to conduct a full analysis of the feasibility to expand the area and actually start up the expansion could cost about $175,000, Straus said.

In 2004, Hanford formed the redevelopment area as a way to bring resources to long-term revitalization of the historic downtown.

The existing 333-acre project area encompasses most of downtown. It runs from 11th Avenue to the west, 9 1/4 Avenue to the east, Fourth Street to the south and segments of Center and Elm streets to the north. The area also includes 42 acres of unincorporated county territory.

Straus said, depending on what the analysis finds, the city could expand the project area to the west or the east or both.

The benefit, Straus said, is that tax dollars raised in the expanded area could only be used in the original project area confined to downtown but not the other way around, so the intent of the program -- to improve downtown -- is protected.

That was exactly what council members wanted to hear. Councilman Joaquin Gonzales voiced his support.

Vice Mayor Dan Chin also supported the idea saying the council must be proactive when it comes to future planning.

"In this economic time, we have the obligation to check all the sources to see if there are ways to prepare us to be in front of the growth, not waiting for it to happen," Chin said.

The reporter can be reached at 583-2429.

(Sept. 2, 2009)