Mayor Boasts About Newark's General Plan Update, Future Developments

Mayor Al Nagy delived his annual State of the City Address Thursday afternoon.

Here is the full text of his speech:

I can’t believe a year has passed since I gave my first State of the City Address. The good news is I’ve made it through a year!

I knew taking the job as Mayor would be a big challenge and l will say it sure has been.  One of the biggest challenges I’ve faced is trying to please everyone.   

Of course we all know that is difficult especially when we’re faced with a slow recovering economy.

As most of you are aware, Newark has faced fiscal challenges and uncertainties for the last seven years thanks to the economic recession.  

Balancing the budget wasn’t easy as we were forced to make budget cuts that affected staffing levels, programs, services, and the closure of both the community center and senior center.  

We were not thrilled about making these cuts but we knew they were necessary.

Needless to say the community was not thrilled about these cuts either.  And, who could blame them.  We were in a tough situation that forced us to cut some very important programs and services.  

Since 2006, we had to pare down operations to match the loss of revenues that totaled over $28 million dollars.  So you can see it was a difficult but necessary step to take.

Despite our financial challenges, we feel confident however, that after nearly seven years of dealing with budget deficits, we are finally seeing growth in our major revenue sources.  

We are cautiously optimistic that this trend will continue and provide us some breathing room in our budget.

The passage of Measure U, Newark’s Utility Users Tax was a major step in our efforts to close the gap between our revenues and expenditures.  

Measure U allowed us to reinstate many of the services and programs we were forced to cut.  We:

• Re-opened the Senior Center
• Added a Police Detective and reinstated a School Resource Officer.
• Funded a part-time Community Preservation Specialist.
• Funded a Special Assistant so that we could bring back Neighborhood Watch and other community programs.
• We now have 36 Neighborhood Watch groups in place.
• We were able to increase street sweeping frequency from once every other month to once a month.
• We increased park and landscape maintenance.
• Reinstated the Ash Street Summer Program.
• And reinstated the School Crossing Guard Program.

Although we were able to reinstate the programs and services I’ve just listed, our ability to continue funding these programs and services will become an issue as we get closer to 2015 when the City’s Utility Users Tax sunsets.

We are also concerned with State actions that continue to “siphon” revenue from the City and the rising cost of medical and pension premiums.

Let’s take a look at our finances today.  We are three quarters of the way through the first year of our two year budget.  

Keep in mind that the budget was prepared with a very conservative forecast that reflects the uncertain nature of the economy at this time last year.

If you look at the chart, you can see that for the current year, 2012-2013, the overall revenue is projected at $36.4 million and the operating expenditures are right in line with the budget at $35.9 million.  

This provides a projected surplus of $500,000.

I do want to point out that the forecast for this fiscal year includes revenue and expenditure reductions due to the temporary closure of the Silliman Aquatic Center for necessary repairs.

The budget for the fiscal year 2013-2014, the second year of our approved budget document, shows a forecast of $37.5 million in revenue and $37.3 million in operating expenditures.  

This provides a projected surplus of $200,000.

So you can see, the budget continues to be balanced and provides the small surpluses that allow us to continue to build our capital reserves, reserves that are set aside to maintain our existing assets and to purchase new assets.

Fortunately, Measure U allowed us to begin stabilizing and rebuilding, not only the important services that were cut, but also our reserves.

Thanks to one-time revenues, Measure U, and an uptick in our hotel tax revenue, our fiscal uncertainty reserves have grown from zero at the end of fiscal year 2009-10 to a projected $5 million at the end of this fiscal year 2012-2013.

This is good news as this fiscal uncertainty reserve is vital to the stability of City services.

Historically, our general fund surpluses have been used to replenish our capital reserves.  Because we have not had a general fund surplus in the last 7 years, our capital reserve fund is severely underfunded.

As our assets age and deteriorate, they become more costly to renovate and/or replace, so we will need to continue to look for funding sources to replenish this fund, especially since we are aware that by the end of this 2 year budget, 2012 through 2014, the reserve will drop below $5 million.  

Although we are currently experiencing a slight rebound, we are aware of the issues we need to address when planning for our future.

As a result, we will continue to monitor our budget and practice our conservative approach to balancing our budget.  

And our hopes are that our community and business leaders will continue to work together with us to make Newark a special place.

I would like to spend the next few minutes talking about what makes Newark the special place it is.

Quality of Life

There is no doubt that the economic downturn has slowed Newark’s progress.  Despite this, I’d argue that Newark is still a remarkable city.  

It has evolved into a multi-generational community where grandparents, parents, and their children call home.

The Dominguez family with mother Kathy, Father Richard, and now their sons and their families who all reside in Newark.

The Apodaca family with Dan and Clara and their daughter and our Vice Mayor Ana.

And the Marshall family with son and daughter and their families living in Newark and teaching at Newark schools.

It’s a high-tech, industrial city that manages to retain its hometown charm with families playing in the park, children scurrying off to school or attending an afterschool activity or playing some type of sport while neighbors are out in the community chatting with one another.

To this day, I still hear of residents who for one reason or another moved out of Newark, only to want to return.  

And when asked why, they tell us they miss the charm of the community and the “small town” atmosphere.

That sense of community really hit home with me at the recent Susan Johnson Bridgepoint Park Dedication.  

Last October, former Council Member Susan Johnson was honored with the renaming of Bridgepoint Park to the Susan Johnson Bridgepoint Park.  

Susan served on the Newark City Council from 1985 to 2007, and truly devoted herself to the betterment of Newark.  She understood the values and importance of creating a community.

Susan spoke at the dedication of how she took her daughters to play throughout the years at that very park.

And now, there she stood, celebrating a park in her honor, a park that to this day, she still visits with her children and her grandchildren.

Yes, Newark has something for everyone. You could start with our beautiful parks like the Susan Johnson Bridgepoint Park.  

Newark has 15 parks and sports-play facilities throughout the City.  Most of our parks were built within neighborhoods so that residents have a nearby park that they can visit without having to travel across town.

It was also important for us to locate parks next to schools so that students could share in their use.  These parks include Birch Grove, the Susan Johnson Bridgepoint Park, MacGregor, Mayhews Landing, Mirabeau, and Musick.

The Newark Community Park and the Sportsfield Park next to the George M. Silliman Recreation Complex are two of our most popular parks.  

Thousands of people from all over come to the Community Park to enjoy the annual Newark Days celebration each September and the Sportsfield Park is home to many sports leagues that play and compete throughout the year.

And, how about the George M. Silliman Activity and Aquatic Center?  The center has won many regional awards including:

• Best Public Swimming in the East Bay (Bay Area Parent Magazine)
• Best Family Recreation Center (Readers’ Choice of Fremont)
• Outstanding Aquatic Program (Bay Area Public Pool Operators Association)
• Best Family Aquatic Center (Aquatic International Magazine)

This award winning, state-of-the-art center includes a:

• fitness center
• teen area
• dance studio
• activity room
• preschool
• meeting room
• and a 32,000 square foot indoor water park that houses a lazy river, slides, open lap pool, and a kids activity pool

So it doesn’t matter what the weather is like outside because you’ll be playing indoors!

I should note that the aquatic center is currently closed for repairs but we anticipate reopening the center on Friday, May 24th, just in time for the big Memorial Day weekend.  

Besides our great parks and recreational amenities, the real hidden treasure of our community lies in our people and their willingness to give of their time to support a variety of causes.  

The spirit of volunteerism and public service in the City of Newark is unsurpassed.  We have volunteers from all parts of the city joining together to achieve great things.  

We have almost 250 people who volunteer directly with the City.  They help out in various capacities, such as volunteering at our:

• Senior Center
• in our Pre-School program
• or volunteer as lifeguards
• police reserves
• police explorers
• as the City’s chaplain
• or Community Emergency Response Team volunteers.  

They’re also volunteering with:

• graffiti abatement
• Neighborhood Watch
• park maintenance
• in police records
• and instructing

The Police Department’s RAVEN (Ready Active Volunteers Engaged in Newark) program attracts volunteers as well.  

There are currently 11 volunteers in the program and 5 are in line for training.  These volunteers work in a variety of assignments within the Police Department

Keep in mind that’s just the number of volunteers who work directly for the City of Newark.  Newark is also home to volunteers with non-profits such as Viola Blythe, the League of Volunteers, and the Salvation Army to name a few.

These groups offer social and human services to any person who is in need.  

They accomplish their mission through a number of programs, including donations, education, emergency food and clothing distribution, referrals to other agencies, and special programs.

Other organizations include… to name just a handful:

• The Newark Optimist Club
• The Newark Rotary Club
• The Newark American and the National Little Leagues

And you know, many don’t think of the Newark Pavilion in the same context, but the Pavilion offers their support as well.  

They provide food baskets to the needy during Easter and Christmas and help support organizations by donating the use of the hall and facilities.   

And… our local business community contributes as well by volunteering their personal time to help others in need.

So you see, the generous and caring people in Newark truly make this an attractive city.

But our volunteers and non-profits are not the only attraction in Newark.  Residents have a number of options to exercise their freedom of religion.  These include:

• Asian/Indian
• Baptist, Catholic
• Latter Day Saints
• Evangelical
• Jehovah’s Witness
• Lutheran
• and Presbyterian churches to choose from.  Newark has it all!
• Newark is also home to both public and private schools.  The Newark Unified School District operates several campuses that include one preschool, eight elementary schools, one junior high school, one high school, and an alternative education center.  

The City enjoys a very cooperative relationship with the school district and we serve the same constituents.  

We also share the same goal of ensuring that all students have the opportunity to obtain a world class education in quality facilities.

Families looking to attend a private school can choose from either Saint Edward Catholic School, Challenger, or the Montessori School of Newark.

And, when your child is ready for College, the Ohlone College Newark Center for Health Sciences and Technology is the perfect choice.

Since it opened in 2008, the college has been a source of pride and innovation.  It is the first “green” community college campus in the nation.

Students have a variety of programs and courses that are offered to them during the day, at night, and on weekends to accommodate their scheduling needs.

Programs offered include biotechnology, environmental studies, physical therapist assistant, registered nursing, and respiratory therapist.

There are also an array of general education, fitness and wellness, and lifelong learning courses available.

We remain enthused about Ohlone College as it continues to exceed all expectations and provide excellent educational opportunities for students of all ages.

The City is beginning to see an uptick in the economy and interest in development in the City is growing.  We have a number of exciting projects that are in progress.

• Development
• Dumbarton Transit-Oriented Development

We continue to work on an exciting new project, the Dumbarton Transit-Oriented Development project which is located next to a proposed commuter rail station near the corner of Willow Street and Enterprise Drive.

This will be a new, walkable neighborhood that will provide a broad range of new housing, retail, and business opportunities.

Imagine if you will, taking a stroll down the street, or riding your bike instead of hopping into your car to go shopping, playing in the park, or using the open space to play.   

That’s what we envision for this new community.  It will include shops, parks, and open space amenities, including a bayside trail.

Besides its convenience, this type of development will reduce greenhouse gas emissions and help us meet state and regional housing requirements; increase transit ridership; and improve recreation.

Neighborhood parks will be located within the residential areas and a larger community recreational amenity will be included.  

This recreational amenity could allow for larger programmed picnic areas, gardens, outdoor musical and dramatic performances and open areas for both active and passive recreation.

The Council has already approved the first phase of the project which includes a 547 unit residential development with three acres of public park/open space and a four acre wetlands reserve area.

It also includes the development of at least 120 affordable senior housing units.

General Plan

We are also in the process of updating our General Plan.

We began the process eighteen months ago working in partnership with Cal-Poly - San Luis Obispo. 

Students from their Master’s Planning Program organized a series of public workshops and prepared a Community Plan and Vision Document. 

The students work was excellent and facilitated unprecedented community interaction - it also resulted in a savings to the City in excess of $100,000.

Last December, the City Council approved a contract with a consultant team to take the students’ work, along with recently approved City Planning documents and compose a formal General Plan Update.

An Environmental Impact Report was also included and the Plan is now being drafted.

We are also working with the business community through the Mayor’s Blue Ribbon Committee for Economic Development and have been coordinating with School district staff to discuss their property and facilities.

On March 28, we convened the first of 3 Joint City Council/Planning Commission Workshops to review the components of the General Plan Update and obtain Planning Commission, Council, and public input.

The second and third workshops will be held on May 9th and May 23rd to review the Draft General Plan, element by element.

We expect to hold a public hearing and approve the General Plan in July. 

Today, thanks to our General Plan guiding us, Newark is home to many retail, commercial, high-tech, and bio-tech companies.  

The NewPark Mall and the surrounding area are a fine example of our General Plan’s retail focus.

NewPark Mall

While the General Plan is a “tune up”, the NewPark Mall area will be a new focus for intensifying development to return the area to a vibrant, retail location.

The City will continue to work with property owners, even after the completion of the General Plan to develop a strategic vision for the area and encourage investment.  

Stevenson Point TechPark

The continued development of the Stevenson Point TechPark is another component of our plan.  We are excited to report that MiTAC Information Systems Corporation has purchased a building at the park.

We are also pleased to report that KNT Manufacturing is relocating from Fremont to join the businesses at Stevenson Point TechPark.  

They’ve recently closed escrow and will be bringing 150 employees to Newark. 

And, one of the most notable developments that came out of our current General Plan vision is the Pacific Research Center.

Pacific Research Center

The Pacific Research Center is located next to Highway 84, at the corner of Gateway Blvd., Jarvis Drive, and Thornton Avenue.  You might remember it as the previous home of Sun Microsystems.

The center consists of nine office/R & D buildings and a large manufacturing building, totaling more than 1.4 million square feet on 105 acres.  

It also includes three un-built development pads capable of supporting approximately 600,000 additional square feet of building space.

It continues to be a high quality location for attracting many high-tech and bio-tech firms.  

What’s unique about the center today is, instead of being home to one specific business, (Sun Microsystem) it is diversified into an array of businesses.

Last year we reported that Logitech, a company that designs and produces peripherals for computers and other digital devices would be opening their 264,000 square foot North American headquarters.  

We are happy to report that they moved into their facilities earlier this year.

DepoMed, a specialty pharmaceutical company signed a ten year lease agreement with BioMed to utilize approximately 60,000 square feet at the Pacific Research Center.  

CellScape Corporation also joins the group of firms at the Pacific Research Center.  CellScape, develops proprietary fetal cell technology to transform prenatal genetic testing.

Last year, we reported that Theranos, a healthcare systems company, signed a lease for 200,000 square feet of space that will be utilized for office, laboratories, and manufacturing.  

Theranos moved into the manufacturing building this year and is revolutionizing the way health information is collected, analyzed, and communicated to doctors and hospitals.  

Another company joining the group at the Pacific Research Center is LB Infosys.  LB Infosys is a leading information technology consulting firm that assist organizations achieve their financial objectives by using their information systems more effectively.  

LB Infosys helps clients in over 30 countries build tomorrows enterprise.   

The addition of these companies to the Pacific Research Center is really solidifying Newark’s place in the high-tech, bio-tech world.

We’ve been told that the Center is already at 70% capacity.  Now that’s exciting news.  And what’s even more exciting, is the ancillary benefits the center brings to Newark.  Employees and their guests will shop locally!

Cherry Logistic Center

Another bit of exciting news is the Cherry Logistic Center project.  

The center will be located on the west side of Cherry Street, just down the street from the intersection of Mowry Avenue and Cherry Street.  

The center, which is currently under construction, will be a new, 574,600 square foot, state-of-the-art distribution and warehouse facility.  We anticipate the center to open for occupancy before the end of the year.

Conclusion

So you see great things are happening in Newark even though we’ve been feeling the effects of a down economy.  

Through hard work, a well-balanced planned community, Newark will continue to be a special place we call home.  

But most importantly, let’s continue to work together, because by working together, we make Newark even better.

Thank you for joining us this afternoon.