HomeMy WebLinkAboutR05-Economic Development Agency
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DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REOUEST FOR COMMISSION/COUNCil. ACTION
From: BARBARA J. LINDSETII
Acting Executive Director
Subject: IMPLEMENTATION PLAN FOR
V ARIOUS REDEVELOPMENT
PROJECT AREAS (AB-1290)
Date: November 23,1994
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Svnnn~i!ll of Previous Commi55ion/Coun~illCommittee Aetionls):
On November 21, 1994, the Community Development Commission established December 5, 1994 at
11:00 a.m., as the date and time for Implementation Plan Public Hearing.
Recommended Motionls):
OPEN PUBLIC HEARING
CLOSE PUBLIC HEARING
lCommunitv Development Commi!l;lIiilinnl
MOTION:
RESOLUTION OF TIlE COMMUNITY DEVELOPMENT COMMISSION OF TIlE
CITY OF SAN BERNARDINO, ON BEHALF OF TIlE REDEVELOPMENT
AGENCY OF TIlE CITY OF SAN BERNARDINO, APPROVING A CERTAIN
IMPLEMENTATION PLAN FOR TIlE VARIOUS REDEVELOPMENT PROJECT
AREAS OF TIlE CITY OF SAN BERNARDINO.
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Administrator
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BARBARA J. LINDSETH
Acting Executive Director
Contact Person(s): Barbara J. Lindsethn ""m J. Muna-Landa Phone: 5081
Project Area(s): All Ward(s): 1 - 1
Supporting Data Allached: Staff Rc:port/Resolutionllmplementation Plan
FUNDING REQUIREMENTS: Amount: $ N/A
Budget Authority:
Source:
Commilllsion/Collncil Notes:
BJL:LJML:abI290(dle)
COMMISSION MEETING AGENDA
Meeting Date: 12/05/1994
Agenda Item Number: 5'
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D VELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
IMPq:lY\Ji;NlA,TION PLAN FOR
VARIOUS REDEVELOPMENT PROJECT AREAS
Back~und
The Agency has previously adopted various redevelopment project areas throughout the City of San
Bernardino in acconlance with California Cornmunity Redevelopment Law.
Analysis
Recent revisions to the California Cornmunity Redevelopment Law, which were enacted pursuant to
Assembly Bill 1290, require that every redevelopment agency prepare an Implementation Plan, for its
various redevelopment project areas which sets forth the specific goals and objectives of the
redevelopment agency as well as the program s designed to implement its redevelopment activities and
assist in the elimination of blight throughout its various project areas. In addition, the Implementation
Plan is also required to address the low- and moderate-income housing provisions and the
redevelopment agency's low- and moderate-income housing compliance plan. Agency staff has
reviewed the various plans as well as the project area revenues and proposed projects. The project
areas discussed within the Implementation Plan are:
1. Central City Project (merged)
2. State College Project
3. Central City North Project
4. Southeast Industrial Park Project
5. Central City West Project
6. Northwest Project
7. Tri-City Project
8. South Valle Project
9. Uptown Project
10. Mt. Vemon Corridor Project
Agency staff has prepared the Implementation Plan which is attached to this staff report. The
Implementation Plan discusses each Redevelopment Project Area's goals and objectives and includes a
lengthy discussion of the Agency's compliance with the low- and moderate-income housing provisions
a, set forth in California Community Redevelopment Law. The Implementation Plan is to be
approved after a public hearing whereby the Agency is to receive comments from the public. The
Implementation Plan must be approved by the Agency prior to December 31, 1994.
Recommendation
Staff recommends adoption of the fom motion.
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BARBARA J. LINDSETH, Acting Director
Development Department
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BJL:LJML:ab1290(dle)
COMMISSION MEETING AGENDA
Meeting Date: 12/05/1994
Agenda Item Number: 5
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RESOLurION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF nIB CITY OF SAN BERNARDINO, ON
BEHALF OF THE REDEVELOPMENT AGENCY OF TIlE
CITY OF SAN BERNARDINO, APPROVING A CERTAIN
IMPLEMENTATION PLAN FOR THE VARIOUS
REDEVELOPMENT PROmCT \AREAS OF THE Cny OF
SAN BERNARDINO. ,;
WHEREAS, the City of San Bernardino. California (the "City") is a municipal
9 cOlpomtlon lUld a charter city duly cmated and existing pulSuant to the conslituliollllnd the III.I:!8 Jl~_the
1 0 State of Califomia: and
11 WHEREAS. the Community Development Commission of the City of San Bernardino
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12 (the "Commission"), on behalf of the Redevelopment Agency of the City of San Bernardino (the
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13 "Agency"), is II redcvelopment agency. a pUblic body, cmpomte and politic of the State of California,
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14 orgllni7.ed lUld existing Ptmluant to the C~unity Redevelopment Law (part 1 of Division 24)
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commencing with Secljonl~3000 of the Helllcth 1II1d Safety Code of the State of Califomia (the "Act"):
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WHEREAS., Section 33490 of the Act. which was added by Assembly Bill 1290 enacted
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yeaiS which contains the specific goals lII1d objectives of the Agency for its project areas. which
21 Implementation Plan is to include the specific prognuns lII1d estimated eJ<penditures of the Agency as
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22 well as its low and modemte income housing prognun; lII1d
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. 24 Redevelopment Plans (collectively berelnafter refesred to as the "Redevelopment Plans") for various
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25 redevelopment pl'Oject areas within the City ~bicb project areas include: tile Mendowbrook-Centrul CUy
26 Project Area. Central City Nortb Project Area, Central City East ProJect Area, Cenlrul City South Projl:ct
C 27 Area, Central City West pmject Area, Trl-City Project Area, Southeast Industrial Park: Redevelopment
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WHEREAS. the City lII1d the Commission have previously approved and adopted
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2 l'roject Area, South Valle Project Area, State College Project Area, Northwest Project Area, Uptown
3 PlOject Area, and the Mt. Vernon Corridor Project Area (collectively hereinafter referred to as tbe
4 "Project Areas"); 8nd
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WHEREAS, the Agency has prepared an Implementation Plan which sets forth the
6 requirements of Assembly Bill 1290 for each of the Agency's Project Areas; and
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8 with its approval of the Implementation PIm.
WHEREAS, the Act requires thal the Agency must hold a public bearing in connection
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NOW, THEREFORB THE COMMUNITY DEVELOPMENT COMMISSION ACflNO
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ON BFJIALF OFTHE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES
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HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
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Section 2. The Agency, having held a duly noticed public hearing in accordance
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with Hwlh and Safety Code Section 33490, hereby finds and detennines that the Implementation Plan
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has been prepared in accontance with the Act.
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Section 3. The Agency hereby approves the Implementation Plan, a copy of wbich
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is attached hereto as Exhibit " A" and incorpomted herein by this reference.
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Section 4. The findings'and detenn1oBtiolls herein'shall be final an!' conclusive.
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'Ibis Resolution shall take effect upon the date of Its adoption.
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1 1l.T.ISOLlIUON OF llffi COMMtJNITY Dnvm.OI'MENT COMWSSION OF TIm CITY OF SAN
DRRNARDlNO. ON lllillAJ..F OF THE RlIDUVHL.OPMBN'r AORNCY OJ' TH8 CITY OF SAN
2 DT:iltNARDlNO, APrROV1NO A CElRTAlN lMl'LBMENTA'l'lON PLAN FOR l'U6 VARIOUS
Rr..onVJ.,;LOPMrINT l'ROmC'r AJrr"IAS OF TIm Cll'Y OF SAN DIlRNARDINO
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6 l.l<'Ve1opIllCIlI COlll/QIASlon oCtile Clly or SUIl BC11I8rdlno at 1\_____ _ ___
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II-JEREOY CER11FY (hilt IIIe Coregolllg Resolution WIIS duly ndoplcd by Ihe COlllllJunlty
ml.'tltlng IhCl<lof, held on Ihe __ _ d"y of _
______.1994. by lhclollowlng volC, 10 wI!:
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13 POl'E-LIJDLAM
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111c foregoing reb'Olutionls }I!'fllhy approvc4l11i:l ~_ dRY 0 __._____. 1994.
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TOM MINOR. Chulmll\ll
Community Developmcnl COIllIl1i.,slou
of the Cil'y of San Bemlll"dino
~pprov~.d.,as \0 fonn
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25 Agell~Y C ...
26 .s".',,""1290.,e,(dle)
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C STATE OF CALIFORNIA )
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2 COUNTY OF )
3 On beforeme,
4 (dole) (he~ ioscrI cwne and title of Ihe officer)
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5 personally appeared , personally known to me (or proved 10 me on Ihe basis
6 of satisfactory evidence) to be Ihe person(s) whose nane(s) is/are subscribed to Ihe within iosttumenl and
7 acknowledged 10 me dllll he/she/they executed the same In his/hcJ;lthelr aulhori7.ed capacily(ie.,), and dml
8 by his/hcr/thelr signature(s) on the insttumenl the person(s), or the entity upon behalf of which the
person(s) acted, execuled the insttument.
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10 WflNESS my hand and of:licial seal.
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13 Signature
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IMPLEMENTATION PLAN
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for the Redevelopment Agency of the City of San Bernardino
Redevelopment Projects
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· Central City Project (Merged)
· State College Project
· Central City North Project
· Southeast Industrial Park Project
· Central City West Project
· Northwest Project
· Tri-City Project
· South VaIle Project
· Uptown Project
· Mt. Vernon Corridor Project
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City of San Bernardino .
ECONOMIC DEVELOPMENT AGENCY
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IMPLEMENTATION PLAN
FOR THE
REDEVELOPMENT AGENCY
OF THE
CITY OF SAN BERNARDINO
REDEVELOPMENT PROJECTS
. CENTRAL CITY PROJECT (MERGED)
. STATE COLLEGE PROJECT
. CENTRAL CITY NORTH PROJECT
. SOUTHEAST INDUSTRIAL PARK PROJECT
.CENTRAL CITY WEST PROJECT
. NORTHWEST PROJECT
. TRI-CITY PROJECT
. SOUTH VALLE PROJECT
. UPTOWN PROJECT
. MT. VERNON CORRIDOR PROJECT
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PREFACE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
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IN'IRODUcrION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Intent of the hnplementation Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
hnplementationPlanRequirement ..........................................3
Housing Production Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PROJECf AREAS - BACKGROUND ...................................... 5
... General Overview ............................................................ 5
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CENlRAL CITY PROJECf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Original Blighting Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Reasons for the Selection of the Project Area ..................................9
Agency Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Current Conditions ..................................................... 11
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Central City Program/Project Matrix ................................. 13
Funding Sources ...................................................... 15
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STATE COLLEGE PROJECf ........................................... 18
Original Blighting Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Reasons for the Selection of the Project Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Agency Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Current Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
State College Program/Project Matrix ................................ 23
FundingSources ...................................................... 25
C.
CENlRAL CITY NORTH PROJECf .. . .. . . .. . .. . .. .. . .. . .. . .. . .. . . . . . . . . . 28
Original Blighting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Reasons for the Selection of the Project Area .................................30
Agency Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Current Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Central City North Program/Project Matrix ............................ 34
Funding Sources ...................................................... 36
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SOUTHEASTINDUS1RIAL PARK PROJECT ..............................39
Original Blighting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Reasons for the Selection of the Project Area .................................40
Agency Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Current Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Southeast Industrial Park Program/Project Matrix ....................... 45
FundingSources ...................................................... 46
CENlRAL CITY WEST PROJECT ....................................... 50
Reasons for the Selection of the Project Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Agency Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Current Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Central City West Program/Project Matrix ............................. 54
FundingSources ...................................................... 54
NORTHWEST PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Original Blighting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Reasons for the Selection of the Project Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Agency Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Current Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Northwest Program/Project Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Funding Sources ...................................................... 63
TRl-CrrY PROJECT .................................................. 67
Original Blighting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Reasons for the Selection of the Project Area .................................68
Agency Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Current Conditions ..................................................... 69
Five Year Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Tri-City Program/Project Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Funding Sources ...................................................... 72
SOUTH VALLE PROJECT ............................................. 76
Original Blighting Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Reasons for the Selection of the Project Area .................................77
Agency Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Current Conditions ..................................................... 78
Five Year Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
South Valle Program/project Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Funding Sources ...................................................... 81
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UPTOWN PROJECf .................................................. 84
Original Blighting Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Reasons for the Selection of the Project Area .................................85
AgencyActivities...................................................... 86
Current Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Five Year Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Uptown ProgramfProject Matrix .................................... 89
Funding Sources ...................................................... 90
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Mr. VERNON CORRIDOR PROmCf .................................... 94
Original Blighting Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Reasons for the Selection of the Project Area .................................96
Agency Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Current Conditions ..................................................... 97
Five Year Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Mt. Vemon CorridorProgramfProject Matrix ...........................99
Funding Sources ..................................................... 100
III. REPLACEMENT INCLUSIONARY HOUSING PLAN . . . . . . . . . . . . . . . . . . . . . .. 106
... IV. ADMINISTRATIONOFTHEIMPLEMENTATIONPLAN................... 195
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PREFACE
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111is Implementation Plan ("Plan") is being prepared and adopted in accordance and with recent
revisions to California's Redevelopment Law (CRL). These revisions apply to the Redevelopment
Agency ("Agency") of the City of San Bernardino's ten (10) redevelopment project areas. This
Plan identifies Agency-related programs including potential project activities scheduled for the
next five years, including housing activities targeted for low-and moderate-income fantilles.
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111is Implementation Plan is presented in the following four sections:
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Section 1 - Introduction:
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Provides an overview of the changes to California's Redevelopment Law that prompted the
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Section 2 . Project Areas Background:
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Introduces and describes generally the ten (10) Redevelopment Project Areas in the City of San
Bernardino. Includes descriptions of each Redevelopment Project's location, Redevelopment
Project area maps, goals, original and remaining blighting conditions, Agency activities to date in
each Redevelopment Project Area, and activities proposed for the next five year period.
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Section 3 - Housing Production Program:
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Provides a sllmmary of issues relative to providing low- and moderate-income housing. Includes
descriptions of past hOllsing production activities, current housing needs, housing programs aimed
at meeting these needs, and a five (5) year housing production plan.
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Section 4 - Administration of the Implementation Plan:
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Describes the Implementation Plan review process, including periodic reviews and public
hearings. Also includes a description of annual financial commitments that will fund the Agency's
activities.
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I.
INTRODUCTION
TIle Redevelopment Agency of the City of San Bernardino ("Agency") is involved in
various business development and revitalization, public works, marketing, business
retention and expansion, and housing activities. The Agency is responsible for the
adoption of redevelopment project areas for the pmpose of revitalizing blighted and
economically stagnant portions of the community. In doing so, the Agency implements
redevelopment programs that assist in the installation and upgrading of infrastructure and
other capital improvements. The Agency, therefore, acts as a catalyst for the removal of
blighting conditions that burden a community and facilitates reinvestment in the area.
TIle Agency is also responsible for increasing, maintaining, and preserving the City of San
Bemardino stock of low- and moderate-income dwelling units through the use of a
portion of tax increment funds generated by redevelopment project areas.
In this role, the Agency has supervised the preparation of this Implementation Plan, which
provides a short-range strategy for accomplishing these objectives, as well as a method of
measuring perfOnllance.
Intent of the Implementation Plan
On October 6, 1993, Governor Pete Wilson signed into law Assembly Bill (AB) 1290, the
California Community Redevelopment Law Reform Act of 1993. AB 1290 was authored
to address perceived major abuses and problems in redevelopment practice, and to refocus
the redevelopment process on statewide concerns of alleviating blight, stimulating
economic development, and providing affordable housing. Chief among the problems
addressed by AB 1290 is engaging in redevelopment activities that do not truly address
blighting conditions. AB 1290 was subsequently amended by Senate Bill 732 which
became effective as an ongoing item on September 27, 1994.
Reflecting a legislative concern that some redevelopment agencies do not implement their
plans in a maImer that results in the elimination of the blight that justifIed the adoption of
the plan in the first place, AB 1290 contains a number of provisions that require an agency
and its legislative body to implement the redevelopment plan in a marnler that will
eliminate blighting conditions. Implementing projects that cannot be linked to the
elimination of blight will not be penllissible under Community Redevelopment Law
(CRL). It is thus the dual intent of the Implementation Plan to provide a more realistic
and manageable short-range schedule of redevelopment activities, while providing
justifIcation of these activities by identifying and defining the linkage between the
redevelopment plan and blight elimination.
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Implementation Plan Requirement
TIle CRL Reform Act of 1993 added Section 33490 to the Health and Safety Code. This
new section requires agencies to produce implementation plans every five years. In
accordance with this section, the implementation plan must contain the following:
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Specific goals and objectives for the next five (5) years.
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Specific programs including potential projects and expenditures planned for the
next five (5) years.
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An explanation of how the goals, objectives, projects, and expenditures will
eliminate blight.
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An explanation of how the goals, objectives, projects, and expenditures will
implement the low- and moderate-income housing set-aside and housing
production requirements (Health and Safety Code Sections 33334.2, 33334.4,
33334.6, and 33413).
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The number of housing units to be rehabilitated, price-restricted, assisted or
destroyed.
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Plans for using annual deposits to the Low and Moderate Housing Fund.
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If a planned project will result in destruction of existing affordable housing, an
identification of proposed locations for the replacement housing the Agency will be
required to produce (Health and Safety Code Section 33413).
.
The project area affordable housing production plan (AB 315 plan, required by
Health and Safety Code Section 33413(b)( 4)).
For redevelopment plans adopted prior to January 1, 1994, the first implementation plan
must be adopted by December 31,1994. For plans adopted on or after January 1, 1994,
the first complete implementation plan must be prepared and adopted prior to the end of
the fifth year after it was adopted. Plan adoption can ouly be accomplished after first
holding a noticed public hearing. Between two and three years after adoption of an
implementation plan, the Agency must hold another noticed public hearing to review the
redevelopment plan and the last implementation plan.
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Housing Production Requirements
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Under current law, agencies that administer redevelopment project areas or portions of
project areas established on or after January I, 1976 have an obligation to ensure that
specified percentages of new or rehabilitated housing are available at affordable housing
cost to low-and moderate-income households and to very low-income households. In
addition, under Section 33413 of the CRL, whenever dwelling units housing persons and
families of low- or moderate-income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project, the agency is
required to replace those units with an equal number of replacement dwelling units within
four years of displacement. The replacement units must have an equal or greater number
of bedrooms as those destroyed or removed units at affordable housing costs within the
project area.
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In the event that suitable land for residential development cannot be found within a project
area, then the CRL permits an agency to count units that are made available at affordable
housing cost outside a project area toward the agency's project area housing production
requirement, on a two-for-one basis: that is, two affordable units created outside a project
area will count the same toward the inclusionary obligation as one unit created inside the
project area. The State has declared that the provision of affordable housing outside of
redevelopment project areas can be of direct benefit to those projects in helping to
accomplish project objectives regarding affordable housing.
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Section 33334 of the CRL addresses a number offinancial issues as they apply to
affordable housing. These issues are applicable to implementation plans due to the
detailed character of the plan, and the strong emphasis placed on providing housing
opportunities within the community. Subsections of particular importance in regards to
the inlplementation plan include:
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~33334.2: Agency obligation to use 20% of tax increment to increase,
improve and preserve the community's supply of low- and moderate-income
housing.
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~33334.3: Establishment and use of Low- and Moderate Income Housing
Fund; Covenants and restrictions.
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~33334.10: Plan for use of excess surplus in Low- and Moderate Income
Housing Fund.
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~33334.12: Disbursement of unexpended or unencumbered excess surplus in
Low- and Moderate-Income Housing Fund.
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~33334.17: Use of Low- and Moderate-Income Housing Funds outside the
community.
Of particular interest is Section 33334.10, which deals with the issue of excess sUlplus in
the Low- and Moderate-hlcome Housing Fund ("Housing Fund"), and the plans for its
use. Under current law, an agency that has accumulated an "excess sUlplus" in its
Housing Fund must expend such sUlplus within five years or disburse such sUlplus to the
county housing authority or another public agency exercising housing development
powers within the agency's territorial jurisdiction. The housing authority or other public
entity is then directed to use the transferred sUlplus within three years of the date of
transfer to improve and increase the supply of affordable low-and moderate-income
housing in the community in which the agency operates. Ai; redefined in AB 1290, an
agency will have an excess sUlplus when the unexpended and unencumbered amount in the
agency's Housing Fund exceeds the greater of $1,000,000 or the total amount deposited in
the agency's Housing Fund during the preceding four years. AB 1290 also strengthens the
sanctions for an agency's failure to encumber monies in its Housing Fund in a timely
mauner. The intent of these revisions is to encourage agencies 0 make tinlely expenditures
of any excess surplus, as well as addressing the widespread perception that, collectively,
redevelopment agencies are not spending their Housing Fund monies quickly enough.
II.
PROJECT AREAS - BACKGROUND
General Overview
The Agency administers ten (10) redevelopment projects, comprising almost 8,000 acres.
The ten (10 ) project areas are:
1.
2.
3.
4.
5.
Central City Project (Merged)
State College Project
Central City North Project
Southeast Industrial Park Project
Central City West Project
6.
7.
8.
9.
10.
Northwest Project
Tri-City Project
South Valle Project
Uptown Project
Mt. Vernon Corridor Project
The housing production provisions of CRL Section 33413 applies only to projects adopted after
January 1, 1976. Three (3) of the projects listed above - State College Project, Central City
North Project and Southeast Industrial Park Project do not meet this requirement and thus, are
not subject to the housing production provisions of the law at this time.
This chapter describes generally the setting for each of the project areas, in terms of such issues as
physical conditions, goals, and agency activities. The physical conditions portion of each section
includes a swrunary description of both original blighting conditions as well as documentation of
any remaining blighting conditions that still exist. This background information is critical in order
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to accurately assess the impact that each project has had on the community. This will also
provide a means of evaluating the progress that redevelopment activities in each of the projects
has made towards accomplishing their respective goals.
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CENTRAL CrrY PROJECT
TIle Central City Project Area consists of four (4) merged project areas adopted as
follows: Meadowbrook Project Area adopted August 22, 1958, Central City East Project
Area adopted May 3,1976, Central City South Project Area adopted May 3,1976, and
Cental City Project No.1 adopted February 24, 1965. These project areas were merged
into one project area, through successive legislative actions into the Central City Project
Area by 1983. The total gross acreage for the Central City Project Areas is 1,008. The
combination of the project areas allows for office, commercial, retail and light industrial
opportunities to be consolidated under one project area, which provides for more efficient
management of staff resources and funds. Within the Central City Project Area is the
Carousel Mall, City Hall and govemment office buildings.
Original Blighting Conditions
The prinlary blighting influences at the tinle of plan adoption for the Central City Project
Area (consisting of the four (4) merged projects) Project Area are described briefly in the
paragraphs below, and can be summarized as follows:
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Age, deterioration, and dilapidation of structures
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Mixed character and shifting of uses
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Defective design and physical construction
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The laying out of lots in disregard for the physical character of the ground and
surrowu:l.ing conditions
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Depreciated values and impaired investments
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TIle existence oflots or irregular form and inadequate size
. The existence of inadequate public inlprovements
At the time of plan adoptions and subsequent mergers, properties within the Central City
Project Area were improved, or partially improved with a mixture of conunercial,
industrial, and residential uses, as well as various public/quasi-public and open space sites.
Conditions such as dislocation, deterioration and disuse resulting from faulty planning, the
subdivision and sale of lots of irregular form and shape, and inadequate size for usefulness
and development, undevelopable residual parcels resulting from State highway
construction, and a prevalence of impaired investments and economic maladjustments had
led to a reduction of, or lack of, proper utilization of the area to such an extent that it
resulted in a serious economic burden on the commwnty.
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Current economic conditions in the Central City Project Area are characterized by three
factors: 1) business migration out of project area; 2) commercial vacancy factors; and 3)
impaired investments. Social blight is characterized by worsening historical and current
demographic trends and conditions, which show increases in crime, transiency, and general
social maladjustment.
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Specific blighting conditions within the Central City Project Area are related to
delapidated building condition, property condition, seismic and structural enforcement,
buildings without fire sprink1ers, existence of asbestos, exposure to noise, lack of access
for the disabled, building code violations, and age and obsolescence of structures and
improvements. Building conditions, property conditions, and factors that indicate
functional obsolescence are common in the Central City Project Area.
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Economic blight within the Central City Project Area is evidenced by a steady decline in
many of the economic indicators including assessed land values, business formations,
business relocations, employment, retail sales, household income and public expenditures.
Other economic indicators show that the market is depressed and that the feasibility of
rehabilitation of many of the older and dilapidated structures is very poor.
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Conditions of severe social blight are also prevalent within the Central City Project Area.
Specific indicators of overpopulation, declining economic status, increase crime rate and
transiency combine to show that social blight pervades the Central City Project Area. On
average, Central City Project Area residents earn considerably less than residents outside
the Project Area. Crime, transiency, mental health problems, and alcohol and drug
addiction are far more prevalent within the Central City Project Area than in the rest of the
region.
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Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Central City Project Area to implement commercial projects as well as
supporting the development of very low, low, and moderate income housing. Through the
use of Disposition and Development Agreements (DDA) and Owner Participation
Agreements (OPA) many public-private partnerships have been formed. Despite these
efforts, many of the blighting conditions listed above remain.
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111ese conditions of bl ight and the subsequent under productivity of the Central City
Project Area have placed the subject properties in a very unfavorable competitive position
with respect to newer and more comprehensively planned developments.
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Reasons for the Selection of the Project Area
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The selection of the boundaries of the Central City Project Area was originally guided by
1) the Califomia Health and Safety Code, 2) physical, social, and economic conditions in
the area at that time, and 3) the following Agency objectives:
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. Eliminate the conditions of blight existing in the Central City Project Area
including structurally substandard buildings.
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Insure, as far as possible, that the causes of blighting conditions in the Central City
Project Area will be either eliminated or protected against. An example of this
effort is the coordination of similar land use development in areas throughout the
Project Area.
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Provide participation of owners and business tenants in the Central City Project
Area.
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Encourage and ensure the redevelopment of the Central City Project Area through
both public and private enteIprise.
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Encourage and foster the economic revitalization of the Central City Project Area.
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hnprove the public facilities in the Central City Project Area to provide safer and
more efficient public services.
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Agency Activities
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As identified in the original Revelopment Project Area Plans, there were detrimental
physical, social, and economic conditions that were negatively impacting this section of
San Bemardillo at the time of plan adoption. The Agency had proposed to alleviate these
conditions by undertaking a comprehensive program of public improvements and by
providing a variety of development incentives that were intended to stimulate new
development and rehabilitation activities in the Central City Project Area.
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This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
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Since plan adoption, the Redevelopment Agency or the City of San Bernardino has
initiated a number of projects in the Central City Project Area. The following is a list of
major projects and activities completed in the Project Area within the past five (5) years:
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Radisson Hotel Conversion from the Maruko Hotel (fmancial assistance)
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Executed exclusive Right to Negotiate with Coussoulis Development for
development of property at Rialto and "0" Streets.
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Purchased parcel at Arrowhead & Orangeshow Road for potential relocation of
Water Department Offices.
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Provided assistance to National Orange Show for public improvements on
Arrowhead Avenue to facilitate construction of a satelite wagering facility.
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Purchase of City-owned recycling plant at 181 South "0" Street, demolished the
plant, performed toxic studies and remediated the site.
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Carousel Mall Conversion (Agency fmancial assistance to update the mall theme
and purchase carousel)
. Attraction of Isabella's Restaurant
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Construction of Court Street Square (consumer magnet for the Downtown area)
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Court SU"eet Square Parking Lot Construction (fmancial assistance)
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"E" Street Diagonal Parking Construction
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Development of the City Center Plan (funded cost of plan)
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Installation of Main Street - Streetscape Program
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Assistance to many businesses through the Main Street Facade Assistance Program
. Construction of the "E" Street Terrace
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Agency Acquisition of the Goodwill Property
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Agency assistance for Habitat for Humanity Lot Acquisition
. Acquisition of Coors Distribution Center
Building Acquisition of 201 North "E" Street Building and tenant improvements
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Current Conditions
The original blighting conditions described previously, have been partially eliminated from
the Central City Project Area. AJJ a result of Agency activities, the area is now
characterized as the heart of downtown San Bernardino - a place that will hopefully be
transformed by the end of the decade into a bustling government and retail center. The
foundation for the growth of the area has been established by the implementation of many
Agency sponsored projects. There are however, blighting conditions that remain, and
continue to impair private investment and development activity in the area. These
conditions include:
.
Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
.
Buildings in which the economic viability is substantial hindered due to
substandard design, inadequate size given present standards and market conditions,
lack of parking, or other similar factors.
.
Adjacent or nearby uses that are incompatible with each other and which prevent
the economic development of sites within the Central City Project Area.
.
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
.
Depreciated values and impaired investments.
.
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
.
Lack of adequare, affordable, quality housing.
.
Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
.
Residential overcrowding or an excess of bars, liquor stores or other businesses
that cater exclusively to adults, and consequently has had a negative effective on
public safety and welfare.
.
A high crime rate which constitutes a serious threat to public safety and welfare.
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Five Year Program
The Agency's principal goals and objectives for the Central City Project Area over the
next five year period will continue to focus upon infrastructure upgrades and the
development of vacant, or underutilized parcels with new, employment intensive uses.
Some of the Agency's goals for the next five (5) years include:
.
Creation of incentive programs for existing property owners to reinvest in their
properties, including the utilization of Disposition and Development Agreements
(DDA) and Owner Participation Agreements (OP A).
.
Creation of viable housing options within the Central City Project Area that span a
range of incomes, including housing for the homeless and formerly homeless.
.
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
.
Land acquisition for the creation of public facilities which serve both the immediate
neighborhood and the community at large (such uses may include a sports facility
and family recreational uses).
.
Enhancement of ceremonial streets which function as the focal points of their
individual neighborhoods.
.
Continued preservation of historically significant structures.
.
Improvements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
. Continued participation in the enhancement of the public infrastructure system.
.
Acquisition and disposition of property to abate nuisance uses and provide for
future development.
Specific programs and potential projects and activities that are proposed for this time
period are outlined below. However, many of the Agency's fmancial obligations for the
next five (5) years are pre-existing contractual obligations which must first be met, prior to
the addition of any new obligations. The Matrix shown in the following table summarizes
these program/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
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five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to
Agency initiatives. The program/projects and expenditures represented below rely on the
private sector's ability to obtain financing for projects as well as the Agency's ability to
maintain and increase its tax increment flow. IT Agency funds are depleted due to new
requirements imposed by State and local legislation or actions, it is uulikely that projects
listed below will be implemented completely. Note: The following table does not list
agreemellts with affected taxing agencies i.e., pass-through paymellts or bond principal
and illterest payments.
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Central City ProgramlProject Matrix
Five Year Projections
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EXISTING OBUGATlONS
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$81,230
I. Scott Land Acquisition
for Best ProductsfMarshall
Plaza Development
2. Carousel Mall
Conversion and Update
3. Cooperative Agreement $80,000
with Andreson Building for
parking rights
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4. J.F. Davidson Directional $99,200
Signage for Downtown area
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5. Dektra Lite Maintenance $25,584
Agreement
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6. Maintenance of 5-level $300,000
Parking Structure adjacent to
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Depreciated values and impaired investment
Depreciated values and impaired investment
Provide public improvements (parking) in
the Downtown area which is inadequate.
Inadequate circulation within the Central
City Project Area, signage will address some
circulation problems which will improve
safety.
Through the utilization of Dektra Lite, the
Agency is able to provide beautification
amenities through the use of decorative
lighting for buildings in the Downtown area.
Maintenance of this necessary public
improvement - parking structure allows new
development to occur.
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7. Reimbursement of $575,000 Depreciated values and impaired
Transient Occupancy Tax to investments.
Radisson Hotel .
8. Central City Co. "J" $185,000 Provide catalyst for business occupancy,
Building - Agency rental of remove blighted, under-utilized structure
the building from Central City Project Area.
9. 3-1eve1 Parking Structure $48,000 Maintenance of this necessary public
Maintenance (Carousel Mall) improvement (parlcing structure) allows new
development to occur.
10. Andreson $55,000 Abnormally high vacancies and high
Building/Central City tumover rates occur without Agency
Company! City of San intervention providing financial assistance
Bernardino Maintenance for maintenance.
11. Woolworth $35,000 Abnormally high vacancies and high
Building/City of San turnover rates occur without Agency
Bernardino Maintenance intervention providing financial assistance
for maintenance.
12. Weed Abatement $15,000 Removal of visually blighting influence,
throughout the Central City enhance area as a desirable location.
Project Area on Agency-
owned propelties
13. Fiscal Agent - Bond $75,000 Administrative expenditure allows for the
monitoring facilitation of Central City Redevelopment
Project activities (i.e. administration bond
activities).
14. Carousel Mall Security $2,500,000 Elimination of criminal activity which
constitutes a serious threat to the public
safety and welfare. Enhance area as a
desirable location.
15. 201 North "E" Building $600,000 Agency administrative building abnormally
Operations and Maintenance high vacancies and turnover rates within the
downtown area occur without Agency
intervention providing financial assistance
for maintenance.
16. Central City Parking $141,700 Allows for an economically viable use by
Usage Fees providing adequate parking.
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17. City Hall Refmancing $430,000 Pursuant to Section 33445 tax increment
Credit Fee Letter may be used for this pmpose. Blight
condition to be alleviated is the high degree
of impaired investments and depreciated
values.
18. 201 North "E" Building $100,000 Elimination of factors which substantially
Renovations hinder the viable use of the building (i.e.
substandard design).
19. Agency Legal services $300,000 Administrative expenditure allows for the
facilitation of Central City Redevelopment
Project activities.
20. Agency Consulting $160,000 Administrative expenditure allows for the
Services facilitation of Central City Redevelopment
Project activities.
21. Agency Professional $610,000 Administrative expenditure related to City
Services including funding of reimbursables which allows for the
Convention and Visitor's facilitation of Central City Redevelopment
Bureau Project activities.
22. Agency Administration $2,143,000 Administrative expenditure allows for the
facilitation of Central City Redevelopment
Project activities (i.e. administration of OP A
and DDA).
Funding Sources
TIle Agency has identified sources of funds for the programs and activities planned over the
next five years in the Project Area. These funding sources include:
. Sale of tax allocation bonds supported by tax increment revenues from the Project Area.
It is important to note that most of the bond funds and tax increment for the Central City
Project Area have been encumbered for existing expenses.
. Tax increment revenues over and above the amounts required to cover debt service on the
tax allocation bonds.
The following Increment Projection Table indicates that the tax increment projections for the
next five (5) years are negative, and that the Agency does not anticipate a surplus of tax
increment revenue. The negative figures projected are the result of Agency obligations to
set aside funds into the Low and Moderate Housing Fund, to service existing debt on
previously issued bonds, and to meet existing contractual obligations. In accordance with
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previous Agency practices, transfer of funds from other project areas will be made to the
Central City Project Area (as necessary) in order to address current obligations through
legally available means. It should be noted that a variety of factors influence and affect the
level of tax increment available for projects. Factors which may increase the amount of tax
increment available for projects, include but are not limited to, improved property values
within the project area, improved economic conditions, and public/private partnerships in
which the Agency receives a return on its investment.
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Central City Net Increment Projections
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1994-1995 $2,515,677 $503,135 $3,883,034(2) $(1,870,492)
1995-1996 $2,566,000 $513 ,200 $4,107,409 $(2,054,609)
1996-1997 $2,617,300 $523,460 $4,122,944 $(2,029,104)
1997-1998 $2,670,000 $534,000 $4,137,604 $(2,00 1,604)
1998-1999 $2,723,000 $544,600 $4,150,924 $( I ,972,524)
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(I) Includes debt service, pass-throughs, and existing contractual obligations.
(2) Includes ERAF payment.
(3) Deficit will be met through cash reserves, other income such as land sale, interest eamings,
notes receivable, rent receivable and developer reimbursement.
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CITY OF SAN BERNARDINO
CENTRAL CITY PROJECTS
REDEVELOPMENT PROJECT AREA
Date
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General Plan /Land Use l'
Designations NORTli
_ Commercial General
~. Commercial General'
_ Service Commercial'
I CCS-3 I Flood Conlrol'
_ Commercial Heavy
I CO (1-2) I Commercial Office
_ Commercial Regional
IL I Industrial Light
(IJ<OPCRDIII Public Commercial Recreation
_ PubllcFaclllly
I PFC I Public Flood Control
__ Residential Medium
_ Residential Medium Heavy
'Central City South Plan Overlay Designation
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B. STATE COLLEGE PROJECT
TIle State College Redevelopment Project Area was adopted by the Mayor and Common
Council/Community Development Conunission on April 27, 1970, TIle State College
Redevelopment Project Area, which consists of 1,800 acres, is located in the northwest
section of the City and bisects the Interstate 215 Freeway. TIle State College Project Area's
main land uses include single fanilly and multi-fanilly residential, open space, recreational,
commercial, industrial, and the campus of California State University, San Bernardino.
Original Blighting Conditions
TIle primary blighting influences at the time of plan adoption for the State College Project
Area are described briefly in the paragraphs below, and can be summarized as follows:
. Age, deterioration, and dilapidation of structures.
. Mixed character and shifting of uses.
. Defective design and physical construction.
. The laying out of lots in disregard for the physical character of the ground and surrounding
conditions.
. Depreciated values and impaired investments.
. The existence of lots of irregular form and inadequate size.
. The existence of inadequate public improvements.
At the time of plan adoption, properties within the State College Project Area were
improved, or partially improved with a mixture of commercial, industrial, and residential
uses, as well as various public/quasi-public and open space sites. Conditions such as
dislocation, deterioration and disuse resulting from faulty planning, the subdivision and sale
of lots of irregular form and shape, and inadequate size for usefulness and development,
undevelopable residual parcels resulting from county flood control and State hig\1way
construction, and a prevalence of impaired investments and economic maladjustments had led
to a reduction of, or lack of, proper utilization of the area to such an extent that it constituted
a serious economic burden on the community
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Economic conditions in the State College Project Area are characterized by three factors: 1)
business migration out of the State College Project Area; 2) commercial vacancy factors;
and 3) impaired investments. Specifically, much of the State College Project Area is hilly,
causing site improvements to be rather expensive, therefore, placing the cost of housing in a
prohibitive bracket. Social blight is characterized by worsening historical and current
demographic trenus and conditions, which show increases in crime, transiency, and general
social maladjustment.
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Specific blighting conditions within the State College Project Area are related to dilapidated
building conditions, deteriorating property condition, lack of seismic and structural
reinforcement, buildings without fire sprinklers, existence of asbestos, exposure to noise, lack
of access for the clisabled, building code violations, and age and obsolescence of structures
and improvements. Building conditions, property conditions, and factors that indicate
functional obsolescence are common in the State College Project Area.
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Economic Blight within the State College Project Area is evidenced by a steady decline in
many of the economic indicators including assessed land values, business relocations outside
of the project area, employment, retail sales, household income and public expenditmes. As
previously indicated, the terrain of the State College Project Area makes the development of
many sites fmancially unfeasible. 10 many instances, Agency assistance and involvement is
necessary in order to make a development project viable. Other economic indicators show
that the market is depressed and that the feasibility of rehabilitation of many of the older and
dilapidated structures is very poor.
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Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the State College Project Area to implement commercial projects as well as
supporting the development of very low, low, and moderate income housing. The utilization
of Disposition and Development Agreements (DDA) and Owner Participation Agreements
(OP A) has proven to be a very important tool in encouraging development. Despite these
efforts, many of the blighting conditions listed above remain.
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These conditions of blight and the subsequent under productivity of the State College Project
Area have placed the subject properties in a very unfavorable competitive position with
respect to newer and more comprehensively planned developments.
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Reasons for the Selection of the Project Area
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The selection of the boundaries of the State College Project Area was originally guided by 1)
the California Health and Safety Code, 2) physical, social, and economic conditions in the
area at that time, and 3) the following Agency objectives:
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. Eliminate the conditions of blight existing in the State College Project Area, including the
removal of structurally substandard buildings.
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. Ensure, as far as possible, that the causes of blighting conditions in the State College
Project Area will be either eliminated or protected against.
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. Provide participation for owners and business tenants in the State College Project Area.
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. Encourage and ensure the redevelopment of the State College Project Area.
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. Encourage and foster the economic revitalization of the State College Project Area.
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. hnprove the public facilities in the State College Project Area to provide safer and more
efficient public services.
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. Encourage the provision of a substantial number of housing units of low or moderate cost
on land to be disposed of for residential purposes.
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Agency Activities
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As identified in the Report to the City Council for the State College Project Area, there were
detrimental physical, social, and economic conditions that were negatively impacting this
section of San Bernardino at the time of plan adoption. In the State College Redevelopment
Plan, the Agency had proposed to alleviate these conditions by initiating a comprehensive
progran1 of public improvements and by providing a variety of development incentives that
was intended to stimulate new development and rehabilitation activities in the State College
Project Area.
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111is section will examine the redevelopment activities that were initiated by the Agency in an
attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
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Since plan adoption, the Redevelopment Agency of the City of San Bernardino has initiated a
number of projects in the State College Project Area. The following is a list of major
projects and activities completed in the State College Project Area within the past five (5)
years:
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. Financial assistance to The Sun Newspaper production facility.
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. Assistance to the Ramada Inn.
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. Construction of the Watson Medical Laboratories through a $250,000 gap loan.
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. As part of the University Parkway Agreement, completed landscaping of one acre park
site, and transferred it to the City.
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. Provided funding for the relocation of an electrical transmission tower by Edison to allow
for widening of Kendall Drive.
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. Construction funding for 48th and Kendall Drive storm drain.
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. Assisted in the relocation of Shearson Lehman from Highland Avenue to a 102,000 square
foot building, creating an additional 250 jobs.
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. Relocation of Chambers Cable to a 30,000 square foot building.
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. Grant and Loan for the University Village Shopping Center.
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. Hallmark Parkway Building - Tenant Improvements.
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. Financial Assistance to ARCa AM/PM.
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. State College Industrial Condominiums financial assistance.
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. Development of Stater Bros/Shandin Hills Neighborhood Conunercial Center (Agency
assistance to developer).
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. Emblem Development Financing.
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. Assisted in the location of Cumberland Company to a 65,000 square foot building creating
200 jobs.
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Current Conditions
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TIre original blighting conditions described previously, have been partially elinlinated from
the State College Project Area. As a result of Agency activities, the area is now
characterized by the development of several new business parks which serve as a magnet to
induce further housing development and retail commercial development. There are however,
blighting conditions that remain, and continue to impair private investment and development
activity in the area. These conditions include:
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Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other sinillar factors.
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Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and market conditions, lack of
parking, or other similar factors.
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Adjacent or nearby uses that are incompatible with each other and which prevent
the economic development of sites within the State College Project Area.
.
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
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Depreciated values and impaired investments.
. Lack of adequare, affordable, quality housing.
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Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
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Residential overcrowding or an excess of bars, liquor stores or other businesses
that cater exclusively to adults, and consequently has had a negative effective on
public safety and welfare.
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A high crime rate which constitutes a serious threat to public safety and welfare.
Five Year Program
The Agency's principal goals and objectives for the State College Project Area over the
next five year period will continue to focus upon infrastructure upgrades and the
development of vacant, or underutilized parcels with new, employment intensive uses.
Some of the Agency's goals for the next five (5) years include:
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Creation of incentive programs for existing property owners to reinvest in their
properties including the use of Disposition and Development Agreements (DDA)
and Owner Participation Agreements (OP A) whenever feasible.
.
Creation of viable housing options within the State College Project Area that span
a range of incomes, including housing for the homeless and fonnerly homeless and
quality housing for young families.
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Land acquisition for the creation of public facilities which serve both the immediate
neighborhood and the community at large.
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Improvements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
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Continued participation in the enhancement of the public infrastructure system.
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Acquisition and disposition of property to abate nuisance uses and provide for
future development.
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Specific programs and potential projects and activities that are proposed for this time
period are outlined below. However, many of the Agency's fmancial obligations for the
next five (5) years are pre-existing contractual obligations which must first be met, prior to
the addition of any new obligations. The Matrix shown in the following table summarizes
these program/pro jects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presellted for each activity.
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A nwnber of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previonsly. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to
Agency initiatives. The program/projects and expenditures represented below rely on the
private sector's ability to obtain financing for projects as well as the Agency's ability to
maintain and increase its tax increment flow. If Agency funds are depleted due to new
requirements imposed by State and local legislation or actions, it is unlikely that projects
listed below will be implemented completely. Note: The following table does not list
pass-through paymellts or bond principal and illterest paymellts.
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State College ProgramlProject Matrix
Five Year Projections
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1. Shandin Hills Golf Course $50,000
Water Usage
Elintination of a factor (high water usage)
which would otllerwise substantially hinder
the economically viable use of the site.
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2. Stater Bros. - Developer $900,000
Reimbursement for shopping
center development
Lack of investment and reinvestment in the
State College Project Area; depreciated
values and impaired investments.
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3. Fiscal Agent- Bond $75,000 Administrative expenditure allows for the
Monitoring facilitation of State College Redevelopment
Project activities (i.e. administration of OP A
and DDA).
4. University Village Shopping $600,000 Lack of investment and reinvestment in the
Center - Developer assistance State College Project Area; depreciated
for on-site improvements values and impaired investments.
5. Maintenance of Agency $100,000 Vacancies occur without Agency
owned property located at intervention.
5055 Hallmark
6. Weed Abatement $10,000 Removal of visually blighting influences,
throughout the State College enhance area as a desirable location.
Project Area
7. Tree Trimming throughout $300,000 Removal of visually blighting influences,
the State College Project Area enhance area as a desirable location.
8. Agency Legal Services $200,000 Administrative expenditure allows for the
facilitation of State College Redevelopment
Project activities (i.e. administration of OP A
and DDA).
9. Agency COllSulting Services $65,000 Administrative expenditure allows for the
facilitation of State College Redevelopment
Project activities (i.e. administration of OP A
and DDA).
10. Agency Professional $450,000 Administrative expenditure related to City
Services reimbursables which allows for the
facilitation of State College Redevelopment
Project activities (i.e. administration of OP A
and DDA).
II. Agency Administration $1,560,000 Administrative expenditure allows for the
facilitation of State College Redevelopment
Project activities (i.e. administration of OP A
and DDA).
12. 40th Street Revitalization $44,608 Lack of investment, depreciated values and
Architectural Fees impaired investments.
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Funding Sources
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The Agency has identified SOUlCes of funds for the programs and activities planned over
the next five years in the Project Area. These funding sources include:
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Sale of tax allocation bonds supported by tax increment revenues from the Project
Area. It is important to note that most of the State College Project Area bond
funds have be encumbered for pre-existing expenses.
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Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
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The following Increment Projection Table indicates that the tax increment projections for
the next five (5) years are conservative and total $1,471,092 for the five (5) year period.
The category of "Allocations" includes obligations to set aside funds into the Low and
Moderate Housing Fund, service existing debt on previously issued bonds, and meet
existing contractual obligations. In accordance with previous Agency practices, transfers
to other project areas from the State College Project Area will be made in order to address
tax increment shortages for the other project areas. It should be noted that a variety of
factors influence and affect the level of tax increment available for projects. Factors which
may increase the amount of tax increment available for projects, include but are not limited
to, improved property values within the project area, improved economic conditions, and
public/private partnerships in which the Agency receives a return on its investment.
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State College Net Increment Projections
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1994-1995 $5,374,393 $1,074,878 $4,235,756 (2) $63,759
1995-1996 $5,481,881 $1,096,376 $4,158,336 $227,169
1996-1997 $5,591,519 $1,1l8,304 $4,168,411 $304,804
1997-1998 $5,703,349 $1,140,670 $4,166,676 $396,003
1998-1999 $5,817,416 $1,163,483 $4,174,576 $479,357
(I) hlcludes debt service and existing contractual obligations.
(2) Includes ERAF payment
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CITY OF SAN BERNARDINO
STATE COLLEGE REDEVELOPMENT PROJECT AREA
Date
PART A
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General Plan ILand Use 1"-
Designations NORTH
__ Commercial General
1 CO (1.2) Commercial Office
I IL Industrial Light
I OIP Office Industrial Park
I PCR Public Commercial Recreation
I PFC Public Flood Control
1 PP Public Park
__ Residential Medium
1 RS 1 Residential Suburban
IUBP 11.311 University Business Park SP'
. Refer to Universfty Business Park Specific Plan
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CITY OF SAN BERNARDINO
STATE COLLEGE REDEVELOPMENT PROJECT AREA
Date
PART B
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Designations NORTH
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__ Commercial General
I CO (1-2) I Commercial Office
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I PFC j Public Flood Control
I PP I Public Park
I RL ~ Residential Low
t-RMIIIIiil Residential Medium
_ Resldenllal Medium Heavy
I RS I Resldenllal Suburban
1IRi!i1'/il!l211l\ Resldenllal Urban
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C. CENTRAL CITY NORTH PROJECT
The Central City North Project area was adopted by the Mayor and Common
Council/Community Development Commission on August 6, 1973, and is generally located
within the northern portion ofthe downtown area. The 278 acre project area contains a
mixture of retail, commercial, and residential uses. The new Central Police Facility
(currently under construction) is located within the project area. Other major uses within
the project area included The Sun Newspaper, the main branch of the library, and two
large scale senior citizen housing facilities.
Original Blighting Conditions
The primary blighting influences at the time of plan adoption for the Central City North
Project Area are described briefly in the paragraphs below, and can be sununarized as
follows:
. Age, deterioration, and dilapidation of structures.
. Mixed character and shifting of uses.
. Defective design and physical construction.
. The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
. Depreciated values and impaired investments.
. The existence of lots of irregular form and inadequate size.
. The existence of inadequate public improvements.
At the time of plan adoption, properties within the Central City North Project Area were
improved, or partially improved with a mixture of commercial, industrial, and residential
uses, as well as various public/quasi-public and open space sites. Conditions such as
dislocation, deterioration and disuse resulting from faulty planning, the subdivision and sale
of lots of irregular form and shape, and inadequate size for usefulness and development,
undevelopable residual parcels resulting from street construction, and a prevalence of
impaired investruents and economic maladjustments had led to a reduction of, or lack of,
proper utilization of the area to such an extent that it constituted a serious economic
burden on the community. Many of the residential structures were developed at the turn of
the century and are rapidly deteriorating.
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Economic conditions in the Central City North Project Area are characterized by three
factors: 1) business migration out of Central City North Project Area; 2) commercial
vacancy factors; and 3) impaired investments. Social blight is characterized by
demographic trends and conditions, which show increases in crime, transiency, and general
social maladjusbnent.
Specific blighting conditions within the Central City North Project Area are related to
building conditions, property condition, seismic and structural reinforcement, buildings
without fire sprinklers, existence of asbestos, exposure to noise,lack of access for the
disabled, building code violations, and age and obsolescence of structures and
improvements. Building conditions, property conditions, and factors that indicate
functional obsolescence are common in the Central City North Project Area.
Economic Blight within the Central City North Project Area is evidenced by many
economic indicators including declining assessed land values, reduction in new business
fonnations, business relocations out of the project area, rising unemployment figures,
declining retail sales, and a reduction in household income and public expenditures. Other
economic indicators show that the market is depressed and that the feasibility of
rehabilitation of many of the older and dilapidated structures is very poor.
Conditions of severe social blight are also prevalent within the Central City North Project
Area. Specific rising indicators of population, economic status, housing, crime and
transiency combine to show that social blight pervades the Central City North Project
Area. On average, Central City North Project Area residents earn considerably less than
residents outside the Project Area. Crime, transiency, mental health problems, and alcohol
and drug addiction are far more prevalent within the Central City North Project Area than
in the rest of the region.
Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Central City North Project Area to implement commercial projects as well as
supporting the development of very low, low, and moderate income housing. In many
instances, the Agency has utilized Disposition and Development Agreements (DDA) and
Owner Pariticipation Agreements (OPA) to support developments efforts within the
Central City North Project Area. Despite these efforts, many of the blighting conditions
listed above remain.
These conditions of blight and the subsequent under productivity of the Central City North
Project Area have placed the subject properties in a very unfavorable competitive position
with respect to newer and more comprehensively planned developments.
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Reasons for the Selection of the Project Area
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TIle selection of the boundaries of the Central City North Project Area was originally
guided by 1) the California Health and Safety Code, 2) physical, social, and economic
conditions in the area at that time, and 3) the following Agency objectives:
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Eliminate the conditions of blight existing in the Central City North Project Area.
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Ensure, as far as possible, that the causes of blighting conditions in the Central City
North Project Area will be either eliminated or alleivated.
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Provide participation for owners and business tenants in the Central City North
Project Area.
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Encourage and ensure the redevelopment of the Central City North Project Area.
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Encourage and foster the economic revitalization of the Central City North Project
Area.
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,...
.
Improve the public facilities in the Central City North Project Area to provide safer
and more efficient public services.
1-
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Ensure the removal of buildings that are not economically feasible to rehabilitate.
,..
,...
Agency Activities
,-
...
As identified in the Report to the City Council for the Central City North Project Area,
there were detrimental physical, social, and economic conditions that were negatively
inlpacting this section of San Bernardino at the time of plan adoption. The Agency had
proposed to alleviate these conditions by undertaking a comprehensive progranl of public
improvements and by providing a variety of development incentives that were intended to
stimulate new development and rehabilitation activities in the Central City North Project
Area.
'...
'..
...
...
...
This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
,..
..
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..
Since plan adoption, the Redevelopment Agency of the City of San Bemardino has
initiated a number of projects in the Central City North Project Area. The following is a
list of major projects and activities completed in the Project Area within the past five (5)
years:
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Assisted in the closure of several downtown motels and financed the relocation of
the residents.
.
Financial Assistance for the Mexican Consulate Relocation.
.
Gas Company Building Reuse - Loan to Developer.
.
Fifth and "E" and Fourth and "E" Parlcing Lot Construction.
. Preservation and rehabilitation of the Miles House.
.
County Law Library Retention - Financial Assistance for absestos abatement.
.
Acquisition and Demolition of the Platt Building and Ritz Theatre.
. Police Headquarters Acquisition for the future development of the Superblock.
Acquisition of the California Theater Building.
.
Developed landscaping program for government-owned parcels in the Downtown
area.
.
Assistance to many businesses through the Main Street Facade Assistance
Program.
.
Installation of the Main Street - Streetscape Program.
.
Acquisition of Valley Auto Supply.
.
Acquisition of property for the construction of the Central Police Facility (currently
under construction).
. "E" Street diagonal parking (Agency funded construction).
.
Agency acquisition of site on the northwest comer of Fifth and "E" Street.
Current Conditions
The original blighting conditions described previously, have been partially eliminated from
the Central City North Project Area. As a result of Agency activities, the area is now
characterized by aggressive and active development of the downtown core. Specifically,
the Agency has been instrumental in securing the development of the State Office building
and the Caltrans building. Through the use City Center Plan, theAgency is implementing
31
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plans that will dranlatically improve the City's downtown core. There are however,
blighting conditions that remain, and continue to impair private investment and
development activity in the area. These conditions include:
. Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other sin1ilar factors.
. Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and matket conditions, lack of
patking, or other similar factors.
. Adjacent or nearby uses that are incompatible with each other and which prevent
the economic development of sites within the Central City North Project Area.
. Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
. Depreciated values and impaired investments.
. The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
. Lack of adequare, affordable, quality housing.
. Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
. Residential overcrowding or an excess of bars, liquor stores or other businesses
that cater exclusively to adults, and consequently has had a negative effective on
public safety and welfare.
. A high crime rate which constitutes a serious threat to public safety and welfare.
Five Year Program
TIle Agency's principal goals and objectives for the Central City North Project Area over
the next five year period will continue to focus upon infrastructure upgrades and the
development of vacant, or underutilized parcels with new, employment intensive uses.
Some of the Agency's goals for the next five (5) years include:
32
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Creation of incentive programs for existing property owners to reinvest in their
properties including the utilization of Disposition and Development Agreements
(DDA) and Owner Participation Agreements (OPA)..
.
Creation of viable housing options within the Central City North Project Area that
span a range of incomes, including housing for the homeless and fonnedy
homeless.
.
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
.
Land acquisition for the creation of public facilities which serve both the inunediate
neighborhood and the community at large.
.
Enhancement of ceremonial streets which function as the focal points of their
individual neighbodloods.
.
Continued preservation of historically significant structures.
.
hnprovements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
.
Continued participation in the enhancement of the public infrastructure system.
.
Acquisition and disposition of property to abate nuisance uses and provide for
future development.
Specific progranls and potential projects and activities that are proposed for this time
period are outlined below. However, many of the Agency's fmancial obligations for the
next five (5) years are pre-exisiting contractual obligations which must first be met, prior to
tlle addition of any new obligations. The Matrix shown in the following table summarizes
these program/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects will be
greatly influenced by the recession and the ability of tlte private sector to respond to
Agency initiatives. The program/projects and expenditures represented below rely on the
private sector's ability to obtain financing for projects as well as tlte Agency's ability to
maintain and increase its tax increment flow. If Agency funds are depleted due to new
requirements imposed by State and local legislation or actions, it is unlikely that projects
33
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..
listed below will be implemented completely. Note: The following table does not list
pass-through payments or bond principal and interest payments.
..
...
..
Central City North ProgramlProject Matrix
Five Year Projections
-
..
..
EXISTING OBLIGATIONS
..
...
1. Fiscal Agent - Bond
Monitoring
$30,000
...
..
""
...
2. Main Street Business
Retention Program
$200,000
..
..
3. Main Street Facade Grant
Program
$200,000
""
...
...
..
4. Main Street Banners for the $35,000
Downtown area
..
..
..
5. Main Street Promotional
Marketing and Advertising
$283,650
...
..
-
..
-
...
..
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Administrative expenditure allows for the
facilitation of Central City North
Redevelopment Project activities (i.e.
administration of OP A and DDA).
Abnormally high business vacancies,
abnormally low lease rates, high turnover
rates, abandoned buildings, or excessive
vacant lots.
Abnormally high business vacancies,
abnormally low lease rates, high turnover
rates, abandoned buildings, or excessive
vacant lots.
Through the utilization of banners, the
Agency is able to provide beautification
amenities in the Downtown area, which
serve as a catalyst to attract customers.
Abnormally high business vacancies,
abnormally low lease rates, high turnover
rates, abandoned buildings, or excessive
vacant lots.
34
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..
6. Main Street Sponsored $342,500 Activities serve as a catalyst to attract people
Events: to the Downtown area, thereby eliminating
- Chili Cook Off abnormally high business vacancies,
- Shakespeare Festival abnormally low lease rates, high turnover
- Christmas Lighting rates, abandoned buildings, or excessive
- Carnibizarnival vacant lots.
- Spons Cultural Events
- Friday Night Concerts
- Music Festival
- Other Miscellaneous Events
7. Main Street Co-Sponsored $25,000 Activities serve as a catalyst to attract people
Events: to the Downtown area, thereby eliminating
- Grapes and Gounnet abnormally high business vacancies,
- July Fourth abnormally low lease rates, high turnover
- Red Ribbon rates, abandoned buildings, or excessive
- Food/Wine(Jazz vacant lots.
- Other Miscellaneous Events
8. Main Street Program $55,000 Activities serve as a catalyst to attract people
Sponsorship - provide to the Downtown area, thereby eliminating
fmancial assistance to abnormally high business vacancies,
activities in the Downtown abnormally low lease rates, high turnover
area rates, abandoned buildings, or excessive
vacant lots.
9. Main Street Administration $1,197,000 Administrative expenditure allows for the
facilitation of Central City North
Redevelopment Project activities.
10. Public Parking Lot $25,000 Allows for an economically viable use by
Maintenance providing adequate parking.
11. Weed Abatement $10,000 Removal of visually blighting influences,
throughout the Central City enhance area as a desirable location.
North Project on Agency-
owned property.
12. Maintenance of Agency $350,000 Removal of visually blighting influences,
owned Pacific Federal Bank enhance area as a desirable location.
Building (Security)
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13. Agency Legal Services $225,000 Administrative expenditure allows for the
facilitation of Central City North
Redevelopment Project activities.
14. Agency Consulting $100,000 Administrative expenditure allows for the
Services facilitation of Central City North
Redevelopment Project activities.
15. Agency Professional $590,000 Administrative expenditure allows related to
Services City reimbursables which for the facilitation
of Central City North Redevelopment
Project activities (Le. administration of OP A
and DDA).
16. Operational and $550,000 Removal ofvisually blighting influences,
Maintenance Expenses for enhance area as a desirable location. Also
Sturges Auditorium allows for a economically viable use of the
building.
17. Agency Administration $1,786,500 Administrative expenditure allows for the
facilitation of Central City North
Redevelopment Project activities (Le.
administration of OP A and DDA).
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Funding Sources
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..
The Agency has identified sources of funds for the programs and activities planned over
the next five years in the Project Area. These funding sources include:
...
..
.
Sale of tax allocation bonds supported by tax increment revenues from the Central
City North Project Area. It is important to note that most of the Central City
North Project Area bond funds have been encumbered for existing expenses.
...
...
.
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
...
..
,..
..
The following Increment Projection Table indicates that the tax increment projections less
obligations for the next five (5) years are negative and that the Agency does not anticipate
a surplus of tax increment revenue. The negative figures projected are the result of
Agency obligations to set aside funds into the Low and Moderate Housing Fund, to service
existing debt on previously issued bonds, and to meet existing contractual obligations. In
accordance with previous Agency practices, transfers from other project areas will be made
to the Central City North Project Area in order to address current obligations.
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Central City North Net Increment Projections
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1994-1995 $980,113 $196,023 $2,186,139(2) $( 1,402,049)
1995-1996 $999,715 $199,943 $2,191,332 $0,391,560)
1996-1997 $1,019,710 $203,942 $2,204,805 $(1,389,037)
1997-1998 $1,040,104 $208,021 $2,425,435 $(1,593,352)
1998-1999 $1,060,906 $212,181 $2,233,105 $(1,384,380)
,.
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(I ) Includes debt service and existing contractual obligations.
II'" (2) Includes ERAF payment.
.. (3) Deficit will be met through cash reserves, other income such as land sale, interest earnings,
notes receivable, rent receivable, and developer reimbursement.
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CITY OF SAN BERNARDINO
CENTRAL CITY NORTH
REDEVELOPMENT PROJECT AREA
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General Plan ILand Use
Designations
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NORTH
I CO (1.2) , Commercial Office
__ Commercial General
_ Commercial Regional
...-,1 Public Facility
1-1il14l!!!!l1 Residential Medium
~ Residential Medium Heavy
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SOUTHEAST INDUSTRIAL PARK PROJECT
The Southeast Industrial Parle: Redevelopment Project Area was adopted by the Mayor and
Common Council/Community Development Commission on June 21, 1975. The Southeast
Industrial Park Redevelopment Project Area is located in the southeast section of the City
and is 870 acres. The Southeast Industrial Park Project Area is divided into two sections
with the western portion zoned primarily for commercial and professional office
development, and the eastern area is zoned for light industrial. The 520 acre western
portion is adjacent to the Interstate 10 and Interstate 215 freeway interchanges. The 350
acre eastern industrial section has both Interstate 10 Freeway and rail access.
Original Blighting Conditions
The primary blighting influences at the time of plan adoption for the Southeast Industrial
Park Project Area are described briefly in the paragraphs below, and can be summarized as
follows:
. Age, deterioration, and dilapidation of structures.
. Mixed character and shifting of uses.
. Defective design and physical construction.
. The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
. Depreciated values and impaired investments.
. The existence of lots of irregular form and inadequate size.
. The existence of inadequate public improvements.
At the time of plan adoption, properties within the Southeast Industrial Park Project Area
were improved, or partially improved with a mixture of commercial, industrial, and
residential uses, as well as various public/quasi-public and open space sites. Conditions
such as dislocation, deterioration and disuse resulting from faulty planning, the subdivision
and sale of lots of irregular form and shape, and inadequate size for usefulness and
development, undevelopable residual parcels resulting from county flood control and State
highway construction, and a prevalence of impaired investments and economic
maladjustments had led to a reduction of, or lack of, proper utilization of the area to such
an extent that it constituted a serious economic burden on the community.
39
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Economic conditions in the Southeast Industrial Park Project Area are characterized by
three factors: 1) impaired investments, and 2) commercial vacancy factors. Social blight
is characterized by trends and conditions, which indicate increases in crime, transiency, and
general social maladjustment.
I!'"
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..
Specific blighting conditions within the Southeast Industrial Park Project Area are related
to deteriorating building conditions, dismal property condition, seismic and structural
reinforcement deficiencies, buildings without fire sprinklers, existence of asbestos,
exposure to noise, lack of access for the disabled, severe building code violations, and age
and obsolescence of structures and improvements. Building conditions, property
conditions, and factors that indicate functional obsolescence are common in the Southeast
Industrial Park Project Area.
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Economic Blight within the Southeast Industrial Project Area is evidenced by a steady
decline in many of the economic indicators including assessed land values, business
formations, business relocations, employment, retail sales, household income and public
expenditures. Other economic indicators show that the market is depressed and that the
feasibility of rehabilitation of many of the older and dilapidated structures is very poor.
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Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Southeast Industrial Park Project Area to implement commercial projects
through the use of Disposition and Development Agreements (DDA) and Owner
Participation Agreements (OPA). Despite these efforts, many of the blighting conditions
listed above remain.
."
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...
...
These conditions of blight and the subsequent under productivity of the Southeast
Industrial Park Project Area have placed the subject properties in a very unfavorable
competitive position with respect to newer and more comprehensively planned
developments.
..
....
....
Reasons for the Selection of the Project Area
...
The selection of the boundaries of the Southeast Industrial Park Project Area was
originally guided by 1) the California Health and Safety Code, 2) physical, social, and
economic conditions in the area at that time, and 3) the following Agency objectives:
loll
",.
...
.
Eliminate the conditions of blight existing in the Southeast Industrial Park Project
Area.
....
...
.
Ensure, as far as possible, that the causes of blighting conditions in the Southeast
Industrial Project Area will be either eliminated or protected against.
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Provide participation for owners and business tenants in the Southeast Industrial
Project Area.
...,
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.
Encourage and ensure the redevelopment of the Southeast Industrial Park Project
Area by both private and public enterprise.
""
.
.
Encourage and foster the economic revitalization of the Southeast Industrial Park
Project Area.
"""
..
.
hnprove the public facilities in the Southeast Industrial Park Project Area to
provide safer and more efficient public services.
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Agency Activities
io.
As identified in the Report to the City Council for the Southeast Industrial Park Project
Area, there were detrimental physical, social, and economic conditions that were negatively
impacting this section of San Bernardino at the time of plan adoption. The Agency had
proposed to alleviate these conditions by undertaking a comprehensive program of public
improvements and by providing a variety of development incentives that was intended to
stimulate new development and rehabilitation activities in the Southeast Industrial Park
Project Area.
l'"
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...
...
...
...
This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
""
l..
...
Since plan adoption, the Redevelopment Agency for the City of San Bernardino has
initiated a number of projects in the Southeast Industrial Park Project Area. The following
is a list of major projects and activities completed in the Project Area within the past five
(5) years:
...
...
...
San Bernardino Auto Plaza Retention and Expansion (fmancial assistance)
...
.
San Bernardino Auto Plaza installation of electronic reader board sign
..
.
Automated Health Systems Laundry Expansion technical assistance
!""
110
.
Center Chevrolet Business Expansion and Remodel
Ii'"
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Lucky Farms Expansion - Small Business Loan
,..
110
.
Daniel Radiator retention - 30 jobs saved
...
41
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Construction of the "E" Street Bridge Expansion
.
In cooperation with Chuck King issued partial certificates of completion for 86,000
square feet of industrial buildings.
.
B & M Properties Owner Participation Agreement - completed a 69,000 square
foot retail center at the Auto Plaza.
.
Relocation of Inland Beverage Distributors
.
Provide Fenster & Fenster with technical assistance for new 30,000 square foot
office building
.
J.P. Technologies, Inc., Relocation Assistance
.
Sunset Business Park Loan for Public Improvements - Owner Participation
Agreement
.
Rockwell International Corporation Financial Assistance - development of 44,000
square foot office/manufacturing facility
.
Harmon Auto Center Technical Assistance
. Chuck Obershaw Toyota Relocation to the San Bernardino Auto Center
.
Riverview Development Partners - Funding for Off-site Improvements
.
Comfort Inn Motel - Funding for Off-site Improvements
.
Truck-O-Mat Truck Wash Property Re-Use - Agency Assistance for Property
Purchase and Toxic Clean-up
. Hospitality Lane Security District
.
Freeway Home Center fmancial and technical assistance.
Current Conditions
The original blighting conditions described previously, have been partially eliminated from
the Southeast Industrial Park Project Area. As a result of Agency activities, the area is
now characterized by many successful light industrial businesses. Additionally, the
Southeast Industrial Park Project Area offers an eclectic mix of professional office
complexes, restaurants, hotels, and movie complexes. hI particular, Hospitality Lane, a
42
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main thoroughfare is known for its ability to attract many businesses. There are however,
blighting conditions that remain, and continue to impair private investment and
development activity in the area. These conditions include:
.
Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
.
Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and market conditions, lack of
parking, or other similar factors.
.
Adjacent or nearby uses that are incompatible with each other and which prevent
the economic development of sites within the Southeast Industrial Park Project
Area.
.
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
.
Depreciated values and impaired investments.
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
.
Lack of adequare, affordable, quality housing.
.
Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
. A high crime rate which constitutes a serious threat to public safety and welfare.
Five Year Program
The Agency's principal goals and objectives for the Southeast Industrial Park Project Area
over the next five year period will continue to focus upon infrastructure upgrades and the
development of vacant, or underutilized parcels with new, employment intensive uses.
Some of the Agency's goals for the next five (5) years include:
.
Creation of incentive programs for existing property owners to reinvest in their
properties through the utilization of Disposition and Development Agreements
(DDA) and Owner Participation Agreements (OP A).
.
Creation of viable housing options within the Southeast Industrial Park Project
43
....
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....
io.
Area that span a range of incomes, including housing for the homeless and formerly
homeless.
....
..
.
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
..
..
.
Land acquisition for the creation of public facilities which serve both the inunediate
neighborhood and the community at large.
....
...
.
hnprovements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
..
1M
.
Continued participation in the enhancement of the public infrastructure system.
....
..
.
Acquisition and disposition of property to abate nuisance uses and provide for
future development.
-
...
-
Specific programs and potential projects and activities that are proposed for this time
period are outlined below. However, many of the Agency's fmancial obligations for the
next five (5) years are pre-existing contgractual obligations which must first be met, prior
to the addition of any new obligations. The Matrix shown in the following table
summarizes these program/projects and indicates which blighting conditions will then be
alleviated. Approximate project costs are also presented for each activity.
....
..
..
..
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to
Agency initiatives. The program/projects and expenditures represented below rely on the
private sector's ability to obtain financing for projects as well as the Agency's ability to
maintain and increase its tax increment flow. If Agency funds are depleted due to new
requirements imposed by State and local legislation or actions, it is uulikely that projects
listed below will be implemented completely. Note: The following table does not list
pass-through payments or bond principal and imerest paymems.
-
..
-
..
-
-
...
-
...
...
..
...
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Southeast Industrial Park Program/Project Matrix
Five Year Projections
""
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...
EXISTING OBUGATIONS
""
1. Center Chevrolet Sales Tax $142,855
Reimbursement Assistance
..
""
i.
2. Weed Abatement $5,000
throughout the Southeast
Industrial Park Project Area
on Agency-owned properties.
....
..
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,
3. Employment Linkage $12,000
Assistance to Lucky Farms
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4. Fiscal Agent - Bond
Monitoring
$20,000
..
..
...
5. Agency Legal Services
$200,000
..
....
..
6. Agency Consulting Services $65,000
....
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$500,000
7. Agency Professional
Services
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Depreciated values and impaired
investments. Lack of investment and
reinvestment in theSoutheast Industrial Park
Project Area.
Removal of visually blighting influences,
enhance area as a desirable location.
Lack of investment and reinvestment in the
Southeast Industrial Park Project Area;
depreciated values and impaired investments
which are alleviated with Agency
assistnance.
Administrative expenditure allows for the
facilitation of Southeast Industrial Park
Redevelopment Project activities (i.e.
administration of OP A and DDA).
Administrative expenditure allows for the
facilitation of Southeast Industrial Park
Redevelopment Project activities (i.e.
administration of OP A and DDA).
Administrative expenditure allows for the
facilitation of Southeast Industrial Park
Redevelopment Project activities (i.e.
administration of OP A and DDA).
Administrative expenditure allows for the
facilitation of Southeast Industrial Park
Redevelopment Project activities (i.e.
administration ofOPA and DDA).
45
-
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..
...
..
8. Agency Administration $1,560,000 Administrative expenditure allows for the
facilitation of Southeast Industrial Park
Redevelopment Project activities (i.e.
administration ofOPA and DDA).
...
..
'"'
..
Funding Sources
'"'
a.
The Agency has identified sources of funds for the programs and activities planned over
the next five years in the Southeast Industrial Park Project Area. These funding sources
include:
...
..
.
Sale of tax allocation bonds supported by tax increment revenues from the Project
Area. It is important to note that most of the Southeast Industrial Park Project
Area bond funds have been encumbered for expenses previously incurred.
""
..
...
..
.
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
...
...
The following Increment Projection Table indicates that the tax increment projections for
the next five (5) years are conservative and total $123,115 for the five (5) year period.
The category of "Allocations" includes obligations to set aside funds into the Low and
Moderate Housing Fund, service existing debt on previously issued bonds, and meet
existing contractual obligations. In accordance with previous Agency practices, transfers
to other project areas from Southeast Industrial Park Project Area will be made in order to
address tax increment shortages for the other project areas. It should be noted that a
variety of factors influence and affect the level of tax increment available for projects.
Factors which may increase the amount of tax increment available for projects, include but
are not limited to, improved property values within the project area, improved economic
conditions, and public/private partnerships in which the Agency receives a retum on its
invesbnent.
..
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Southeast Industrial Park Net Increment Projections
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1994-1995 $3,780,840 $756,168 $3,937,950(2) $(913,278)
1995-1996 $3,856,457 $771,291 $2,878,845 $98,469
1996-1997 $3,933,586 $786,717 $2,894,133 $252,736
1997-1998 $4,012,258 $802,452 $2,895,310 $314,496
1998-1999 $4,092,502 $818,501 $2,903,310 $370,692
(1) Includes debt service and existing contractual obligations.
(2) Includes ERAF Payment
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CITY OF SAN BERNARDINO
SOUTHEAST INDUSTRIAL PARK
REDEVELOPMENT PROJECT AREA
Date
PART A
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Designations NORTH
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__ Commercial Regional
I PCR I Public Commercial Recrealion
I"p'~ Public Facility
I PFC I Public Flood Control
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CITY OF SAN BERNARDINO
SOUTHEAST INDUSTRIAL PARK
REDEVELOPMENT PROJECT AREA
Date
PART B
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NORTH
I CR (1.4) I Commercial Regional
I IH I Industrial Heavy
I OIP I Office Industrial Park
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E.
CENTRAL CITY WEST PROJECT
The Central City West Redevelopment Project Area was adopted by the Mayor and
Common Council/Community Development Commission on February 17, 1976. The
Central City West Redevelopment Project Area is located at the intersection of Fifth Street
and Mt. Vemon Avenue, an area long recognized as the gateway to the upper Mt. Vemon
Avenue retail and commercial area. The total acreage for Central City West is four (4)
acres. Central City West is a small project area which serves as a convenience center.
Original Blighting Conditions
TIle primary blighting influences at the time of plan adoption for the Central City West
Park Project Area are described briefly in the paragraphs below, and can be summarized as
follows:
.
Age, deterioration, and dilapidation of structures.
.
Mixed character and shifting of uses.
.
Defective design and physical construction.
.
TIle laying out oflots in disregard for the physical character of the ground and
surrounding conditions.
.
Depreciated values and impaired investments.
. The existence of inadequate public improvements.
At the time of plan adoption, properties within the Central City West Project Area were
improved, or partially improved with a mixture of commercial and industrial uses.
Conditions such as dislocation, deterioration and disuse resulting from faulty planning, the
subdivision and sale of lots of irregular form and shape, and inadequate size for usefulness
and development, and a prevalence of impaired investments and economic maladjustments
had led to a reduction of, or lack of, proper utilization of the area to such an extent that it
constituted a serious economic burden on the community
Economic conditions in the Central City West Project Area are currently characterized by
three factors: 1) business migration out of Project Area; 2) commercial vacancy factors;
and 3) impaired investments. Social blight is characterized by demographic trends and
conditions, which show increases in crime, transiency, and general social maladjustment.
50
...
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...
...
...
Specific blighting conditions within the Central City West Project Area are related to
deteriorating building conditions, declining property condition, lack of access for the
disabled, building code violations, and age and obsolescence of structures and
improvements. Building conditions, property conditions, and factors that indicate
functional obsolescence are common in the Central City West Project Areas.
...
...
...
..
Economic Blight within the Central City West Project Area is evidenced by a steady
decline in many of the economic indicators including assessed land values, business
fonnations, business relocations, employment, retail sales and honsehold income.
...
...
...
Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Central City West Project Area to implement commercial projects. Despite
these efforts, many of the blighting conditions listed above remain.
..
...
..
..
These conditions of blight and the subsequent under productivity of the Central City West
Project Area had placed the subject properties in a very unfavorable competitive position
with respect to newer and more comprehensively planned developments.
...
...
..
Reasons for the Selection of the Project Area
...
~
The selection of the boundaries of the Central City West Project Area was originally
guided by I) the California Health and Safety Code, 2) physical, social, and economic
conditions in the area at that time, and 3) the following Agency objectives:
...
...
.
Eliminate the conditions of blight existing in the Central City West Project Area.
...
.
Ensure, as far as possible, that the causes of blighting conditions in the Central City
West Project Area will be either eliminated or protected against.
..
...
.
Provide participation for owners and business tenants in the Central City West
Project Area.
...
.
Encourage and ensure the redevelopment of the Central City West Project Area.
...
...
...
Encourage and foster the economic revitalization of the Central City West Project
Area.
..
.
Improve the public facilities in the Central City West Project Area to provide safer
and more efficient public services.
II"
..
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..
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..
51
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Agency Activities
-
ioo
As identified in the Report to the City Council for the Central City West Project Area,
there were detrimental physical, social, and economic conditions that were negatively
impacting this section of San Bernardino at the time of plan adoption. TIle Agency had
proposed to alleviate these conditions by providing a variety of development incentives
that was intended to stimulate new development and rehabilitation activities in the Central
City West Project Area.
-
...
-
...
...
TIlls section will exan1ine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
...
..
Since plan adoption, the Redevelopment Agency for the City of San Bernardino has
initiated a number of projects in the Central City West Project Area. TIre following is a list
of projects and activities completed in the Project Area within the past five (5) years:
...
...
...
.
Financial Assistance to Don's Dmg
~
.
Re-roofmg of the Villa Senor Library
...
Ii..
.
Finalized plans to incorporate the Central City West Commercial Center into the
plans for the Mt. Vemon Corridor theme area
..
,
Current Conditions
~
...
The original blighting conditions described previously, have been partially eliminated from
the Project Area. As a result of Agency activities, the area is now characterized by small
"mom and pop" type businesses and a branch library. There are however, blighting
conditions that remain, and continue to inlpair private investment and development activity
in the area. TIlese conditions include:
..
..
...
.
Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and malket conditions, lack of
parking, or other sinillar factors.
...
...
..
.
Adjacent or nearby uses that are incompatible with each other and which prevent
the economic development of sites within the Central City West Project Area.
...
...
.
Depreciated values and inlpaired investments.
ioo
..
.
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
ioo
..
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52
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Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
.
Residential overcrowding or an excess of bars, liquor stores or other businesses
that cater exclusively to adults, and consequently has had a negative effective on
public safety and welfare.
.
A high crime rate which constitutes a serious threat to public safety and welfare.
Five Year Program
The Agency's principal goals and objectives for the Central City West Project Area over
the next five year period will continue to focus upon infrastructure upgrades and the
development of vacant, or underutilized parcels with new, employment intensive uses.
Some of the Agency's goals for the next five (5) years include:
.
Creation of incentive programs for existing property owners to reinvest in their
properties.
.
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
.
Land acquisition for the creation of public facilities which serve both the immediate
neighborhood and the cOlmnunity at large.
.
Improvements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
. Continued participation in the enhancement of the public infrastructure system.
.
Acquisition and disposition of property to abate nuisance uses and provide for
future development.
Specific programs and potential projects and activities that are proposed for this time
period are outlined below. However, many of the Agency's fmancial obligations for the
next five (5) years are pre-existing contractual obligations which must first be met, prior to
the addition of any new obligations. The Matrix shown in tlle following table sunnnarizes
these program/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
A number of programs and potential projects have been identified which would reduce or
elinlinate many of the blighting influences listed previously. Whereas State law requires a
53
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to
Agency initiatives. The program/projects and expenditures represented below rely on the
private sector's ability to obtain fmancing for projects as well as the Agency's ability to
maintain and increase its tax increment flow. If Agency funds are depleted due to new
requirements imposed by State and local legislation or actions, it is unlikely that projects
listed below will be implemented completely. Note: The following table does not list
pass-through payments or bond principal and interest payments.
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Central City West ProgramlProject Matrix
Five Year Projections
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..
EXISTING OBLIGATIONS
,
..
..
l. Agency Legal Services
$10,000
...
..
io.
2. Agency Consulting Services $2,000
..
..
3. Agency Professional
Services
$3,000
-
..
-
4. Agency Administration
$53,500
...
-
...
..
Funding Sources
...
Administrative expenditure allows for the
facilitation of Central City West
Redevelopment Project activities.
Administrative expenditure allows for the
facilitation of Central City West
Redevelopment Project activities.
Administrative expenditure of City
reimbursables which allows for the
facilitation of Central City West
Redevelopment Project activities.
Administrative expenditure allows for the
facilitation of Central City West
Redevelopment Project activities (i.e.
administration ofOPA and DDA).
TIle Agency has identified sources of funds for the programs and activities planned over
the next five years in the Project Area. TIlese funding sources include:
..
....
.
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
..
..
..
III
..
..
54
~-
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...
..
TIle following Increment Projection Table indicates that the tax increment projections for
the next five (5) years are negative and that the Agency does not anticipate a surplus of tax
increment revenue. TIle negative figures projected are the result of Agency obligations to
set aside funds into the Low and Moderate Housing Fund and to meet existing contractual
obligations. In accordance with previous Agency practices, transfers from other project
areas will be made to the Central City West Project Area, as necessary, in order to address
current obligations. It should be noted that a variety of factors influence and affect the
level of tax increment available for projects. Factors which may increase the arnount of tax
increment available for projects, include but are not limited to, improved property values
within the project area, improved economic conditions, and public/private partnerships in
which the Agency receives a return on its investment.
-
...
...
...
...
III
...
ill
...
Central City West Net Increment Projections
...
...
..
...
...
1994-1995 $17,948 $3,590 $4,176(2) $10,182
1995-1996 $18,307 $3,661 $16,200 $(1,554)
1996-1997 $18,673 $3,735 $16,400 $(1,462)
1997-1998 $19,047 $3,809 $16,700 $(1,462)
1998-1999 $19,427 $3,885 $17,000 $(1,458)
...
...
-
...
...
...
(1)
(2)
(3)
Includes debt service and existing contractual obligations
Includes ERAF payment
Deficit will be met through cash reserves, other income such as land sale, interest earnings,
notes receivable, rent receivable and developer reimbursement.
...
..
...
..
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III
...
..
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..
...
55
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CITY OF SAN BERNARDINO
CENTRAL CITY WEST
REDEVELOPMENT PROJECT AREA
Date
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General Plan ILand Use l'
Designations NORTH
I'iiiiI Commercial General'
'Theme Center Specific Plan
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"-'
NORTHVVESTPROJECT
The Northwest Redevelopment Project Area was adopted by the Mayor and Common
Council/Community Development Commission on July 6, 1982. The Northwest
Redevelopment Project Area is located in the northwest section of the City and is
approximately 1,500 acres. The Northwest Project Areas is divided into two subareas
identified as Subarea A, consisting of 940 acres, and Subarea B, consisting of 560 acres.
Subarea A is located generally south of Cajon Boulevard, north of Seventh Street and west
of the Interstate 215 Freeway. The area focuses commercial corridors along portions of
Highland Avenue, Baseline Avenue, Medical Center Drive, and Mt. Vernon Avenue. The
San Bernardino Community Hospital and the Westside Shopping Center are major
employers within the Project Area. Subarea B is located north of the Devil Creek
Diversion Channel, south of the Interstate 215 Freeway, southeast of Palm Avenue facing
Cajon Boulevard. The area is designated for industrial uses.
Original Blighting Conditions
The primary blighting influences at the time of plan adoption for the Northwest Project
Area are described briefly in the paragraphs below, and can be sununarized as follows:
.
Age, deterioration, and dilapidation of structures.
.
Mixed character and shifting of uses.
.
Defective design and physical construction.
.
The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
. Depreciated values and impaired investments.
.
The existence of lots of irregular form and inadequate size.
.
The existence of inadequate public improvements.
At the time of plan adoption, properties within the Northwest Project Area were improved, or
partially improved with a mixture of commercial, industrial, and residential uses, as well as
various public/quasi-public and open space sites. Conditions such as dislocation, deterioration
and disuse resulting from faulty planning, the subdivision and sale of lots of irregular form and
shape, and inadequate size for usefulness and development, undevelopable residual parcels
resulting from county flood control and State highway construction, and a prevalence of impaired
investments and economic maladjustments had led to a reduction of, or lack of, proper utilization
of the area to such an extent that it constituted a serious economic burden on the community
57
-
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\.....
~
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..
...
...
...
Economic conditions in the Northwest Project Area are characterized by three factors: I)
business migration out of the Northwest Project Area; 2) conunercial vacancy factors; and
3) impaired investments. Social blight is characterized by worsening historical and current
demographic trends and conditions, which show increases in crime, transiency, and general
social maladjustment.
...
-
...
..
Specific blighting conditions within the Northwest Project Area are related to deteriorating
building conditions, declining property condition, seismic and structural reinforcement
hazards, buildings without fire sprinklers, existence of asbestos, exposure to noise, lack of
access for the disabled, building code violations, and age and obsolescence of structures and
improvements. Building conditions, property conditions, and factors that indicate functional
obsolescence are common in the Northwest Project Area.
...
..
..
..
,..
Economic Blight within the Northwest Project Area is evidenced by a steady decline in
many of the economic indicators including assessed land values, business formations,
business relocations, employment, retail sales, household income and public expenditures.
Other economic indicators show that the market is depressed and that the feasibility of
rehabilitation of many of the older and dilapidated structures is very unlikely.
III
...
..
III
Conditions of severe social blight are also prevalent within the Northwest Project Area.
Specific indicators of population, economic status, housing, crime and transiency combine
to show that social blight is prevalent in the Project Area. On average, Northwest Project
Area residents earn considerably less than residents outside the Project Area. Crime,
transiency, and alcohol and drug addiction are far more prevalent within the Northwest
Project Area than in the rest of the region.
...
...
""
..
...
Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Northwest Project Area to implement commercial projects as well as
supporting the development of very low, low, and moderate income housing. Historically,
the Agency has entered into many Disposition and Development Agreements (DDA) and
Owner Participation Agreements (OP A) with property owners in order to address many of
the blighting conditions throughout the Northwest Project Area. Despite these efforts,
many of the blighting conditions listed above remain.
...
-
...
..
..
...
These conditions of blight and the subsequent under productivity of the Northwest Project
Area have placed the subject properties in a very unfavorable competitive position with
respect to newer and more comprehensively planned developments.
...
...
III
""
...
..
58
...
...
..
...
,-
'-
,..)
..
...
III
Reasons for the Selection of the Project Area
...
..
The selection of the boundaries of the Northwest Project Area was originally guided by I)
the California Health and Safety Code, 2) physical, social, and economic conditions in the
area at that time, and 3) the following Agency objectives:
...
..
Eliminate the conditions of blight existing in the Northwest Project Area.
...
III
.
Ensure, as far as possible, that the causes of blighting conditions in the Northwest
Project Area will be either eliminated or protected against.
...
..
.
Provide participation for owners and business tenants in the Northwest Project
Area.
...
..
Encourage and ensure the redevelopment of the Northwest Project Area.
...
.
Encourage and foster the economic revitalization ofthe Northwest Project Area.
..
'"'
...
Improve the public facilities in the Northwest Project Area to provide safer and
more efficient public services.
..
Ensure the development of structures which reflect quality architectural and urban
design principles.
...
...
Agency Activities
..
..
As identified in the Report to the City Council for the Northwest Project Area, there were
detrimental physical, social, and economic conditions that were negatively impacting this
section of San Bernardino at the time of plan adoption. The Agency had proposed to
alleviate these conditions by undertaking a comprehensive program by providing a variety of
development incentives that was intended to stimulate new development and rehabilitation
activities in the Northwest Project Area.
...
..
...
...
This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
...
...
..
Since plan adoption, the Redevelopment Agency of the City of San Bernardino has initiated
a number of projects in the Northwest Project Area. The following is a list of major
projects and activities completed in the Northwest Project Area within the past five (5)
years:
pl
II
...
~
...
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59
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...
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...
....
HAB Development (Financial Assistance for the construction of Roads and Bridges)
...
....
InIill Housing Program
...
.
Arrowview Plaza Office/Retail Center Developer Assistance
110
.
West Side Plaza Shopping Center Construction (Agency Financial Assistance to the
Developer)
...
...
Demolition of Clark site (West Side Plaza)
,..
...
.
Arrow Vista Housing Development Financial Assistance
...
Rehabilitation and landscaping of parking lot at 1620 Baseline
...
...
Arrowhead Woods Senior Housing Financial Assistance
..
.
Bashir- Towusend Relocation Assistance
'"'
..
.
Cypress Inn Mobilehome Park Rehabililation
...
PAL Community Child Care Facility Financial Assistance
...
. Public Enterprise Center Maintenance (Agency owned building)
...
...
.
Macy/Blake Sewer Project Construction
,..
l.
.
Obtained agreement from American National Can Company to develop a
$50,000,000,222,000 square foot can making facility
...
Current Conditions
...
...
The original blighting conditions described previously, have been partially eliminated from
the Northwest Project Area. As a result of Agency activities, the area is now characterized
by a thriving 96,177 square foot neighborhood shopping center which serves as a catalyst
for further business opportunities and expausion in the northwest area. There are however,
blighting conditions that remain, and continue to impair private investment and development
activity in the area. These conditious include:
...
""
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..
.
Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
""
,
...
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..
60
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.
Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and market conditions, lack of
parking, or other similar factors.
..
...
ioo
Adjacent or nearby uses that are incompatible with each other and which prevent the
economic development of sites within the Northwest Project Area.
...
...
.
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
...
..
Depreciated values and impaired investments.
...
.
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
...
""
lo.
Lack of adequare, affordable, quality housing.
...
.
Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
..
...
.
Residential overcrowding or an excess of bars, liquor stores or other businesses that
cater exclusively to adults, and consequently has had a negative effective on public
safety and welfare.
..
...
..
.
A high crime rate which constitutes a serious threat to public safety and welfare.
...
Five Year Program
..
..
The Agency's principal goals and objectives for the Northwest Project Area over the next
five year period will continue to focus upon infrastructure upgrades and the development of
vacant, or underutilized parcels with new, employment intensive uses. Some of the
Agency's goals for the next five (5) years include:
...
...
...
Creation of incentive programs for existing property owners to reinvest in their
properties.
..
..
Creation of viable housing options within the Northwest Project Area that span a
range of incomes, including housing for the homeless and formerly homeless.
..
..
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
...
ioo
...
IlIl
61
,.
..
...
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...
l1li
.
Land acquisition for the creation of public facilities which serve both the inunediate
neighborhood and the community at large (such uses may include a community
hospital).
...
l1li
...
.
Improvements to existing water and sewer lines, streets, sidewalks, pllIkways, and
lighting in the public right-of-way.
..
...
.
Continued participation in the enhancement of the public infrastructure system.
ill
.
Acquisition and disposition of property to abate nuisance uses and provide for future
development.
...
l1li
""
ill
Specific programs and potential projects and activities that are proposed for this time period
are outlined below. However, many of the Agency's fmancial obligations for the next five
(5) years are pre-existig contractual obligations which must first be met, prior to the
addition of any new obligations. The Matrix shown in the following table summarizes these
program/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
...
iii
...
...
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to Agency
initiatives. The program/projects and expenditures represented below rely on the private
sector's ability to obtain fmancing for projects as well as the Agency's ability to maintain and
increase its tax increment flow. If Agency funds are depleted due to new requirements
imposed by State and local legislation or actions, it is unlikely that projects listed below will
be implemented completely. Note: The following table does not list pass-through
payments or bond principal and interest payments.
IlII
...
..
...
ill
IlII
...
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...
Northwest Program/Project Matrix
Five Year Projections
...
,..
..
EXISTING OBUGATIONS
...
..
1. Northwest Project Area
Committee Administration
Expenses
$150,000
Administration Expense necessary to
implement the activities of the Northwest
Redevelopment Project Area.
...
..
..
62
..
...
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..
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..
...
2. Weed Abatement $20,000 Removal of visually blighting condition
throughout the Northwest within the Northwest Project Area.
Project Area on Agency-
owned property.
3. Fiscal Agent - Bond $25,000 Administrative expenditure which is
Monitoring necessary to implement the activities of the
Northwest Project Area.
4. New Frontier Letter of $212,500 Shopping Center serves as a catalyst for new
Credit Fee - Shopping Center development; lack of investment and
Subsidy reinvestment in the Northwest Project Area;
depreciated values and impaired investments;
provides necesssary commercial facilites
normally found in neighborhoods - without
Agency intervention and fmancial assistance
the development of the shopping center
would have been infeasible.
5. Line of Credit Float for $1,500,000 Depreciated values and impaired
HAB Development investments.
6. Public Enterprise Center $500,000 Building is used as a community facility for
Maintenance Expenses Northwest area residents; depreciated or
stagnant property values and impaired
investments; without Agency intervention
building would most likely be vacant.
7. Agency Legal Services $375,000 Administrative expenditure which is
necessary to implement the activities of the
Northwest Project Area.
8. Agency Consulting Services $105,000 Administrative expenditure which is
necessary to implement the activities of the
Northwest Project Area.
9. Agency Professional $660,000 Administrative expenditure which is
Services necessary to implement the activities of the
Northwest Project Area.
10. Agency Administration $1,896,000 Administrative expenditure which is
necessary to implement the activities of the
Northwest Project Area.
11. Community Hospital $1,200,000 Lack of investment and reinvestment in the
Loan (Priority) Northwest Project Area.
...
..
...
...
..
...
..
,..
...
..
..
""
...
...
..
...
..
...
..
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...
...
..
63
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...
110
Funding Sources
-
...
The Agency has identified sources of funds for the programs and activities phumed over the
next five years in the Northwest Project Area. These funding sources include:
-
....
.
Sale of tax allocation bonds supported by tax increment revenues from the
Northwest Project Area. It is important to note that most of the Northwest Project
Area bond funds have been encumbered for existing expenses.
...
110
.
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
...
..
,..
a.
The following Increment Projection Table indicates that the tax increment projections for
the next five (5) yeats are negative and that the Agency does not anticipate a surplus of tax
increment revenue. The negative figures projected are the result of Agency obligations to
set aside funds into the Low and Moderate Housing Fund, to service existing debt on
previously issued bonds, and to meet existing contractual obligations. In accordance with
previous Agency practices, transfers from other project areas will be made to the Northwest
Project Area, as necessary, in order to address current obligations. It should be noted that
a variety of factors influence and affect the level of tax increment available for projects.
Factors which may increase the amount of tax increment available for projects, include but
are not limited to, improved property values within the project area, improved economic
conditions, and public/private partnerships in which the Agency receives a return on its
investment.
...
..
!'"
..
""
..
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iIII
Northwest Net Increment Projections
""
ill
""
1994-1995 $1,174,174 $234,835 $1,029,956(2) $(90,617)
1995-1996 $1,197,658 $239,532 $1,563,865 $(605,739)
1996-1997 $1,221,611 $244,322 $1,471,406 $(494,117)
1997-1998 $1,246,043 $249,209 $1,481,456 $(484,622)
1998-1999 $1,270,964 $254,193 $1,490,096 $(473,325)
..
,.
..
,.
iIII
!!II
(1)
(2)
(3)
Includes debt service and existing contractual obligations.
Includes ERAF payment.
Deficit will be met through cash reserves, other income such as land sale, interest eamings,
notes receivable, rent receivable and developer reimbursement.
..
!!II
..
...
64
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CITY OF SAN BERNARDINO
NORTHWEST REDEVELOPMENT PROJECT AREA
Date
"-
PART A
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General Plan /Land Use
Designations
1"-
NOATH
~ Commercial General
_ Commercial Heavy
I IE I Industrial Extractive
I OIP I Office Industrial Park
I PP I Public Park
r-~.... Residential Medium
I RS I Residential Suburban
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CITY OF SAN BERNARDINO
NORTHWEST REDEVELOPMENT PROJECT AREA
Date
PART B
10..
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General Plan ILand Use ..,....
Designations NORTH
~jlOIIlIt) Commercial General
I CO 11-21 I Commercial Office
I It I Industrial Light
I PFC I Public Flood Control
"'9_ Residential Medium
I RS I Residential Suburban
l-Iillll I Residenllal Urban
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CITY OF SAN BERNARDINO
NORTHWEST REDEVELOPMENT PROJECT AREA
Date
PART C
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General Plan ILand Use
Designations
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I PFC I Public Flood Control
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G. TRI-CITY PROJECT
'""
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The Tri-City Redevelopment Project Area was adopted by the Mayor and Conunon
Council/Community Development Commission on June 20, 1983. The Tri-City
Redevelopment Project Area is located in the southeast section of the City. The Tri-City
Project Area is divided into two subareas identified as Subarea I, consisting of 95 acres, and
Subarea II, consisting of 283 acres. Subarea I is located generally west of Del Rosa Avenue
and north of Sixth Street. Subarea I is zoned for residential development. Apartment units
occupy a twelve (12) acre site, with the remainder of the land owned and marketed by the
Agency. Subarea II is located between Waterman and Tippecone Avenues and north of
Interstate 10 freeway. Subarea II includes the Tri-City Corporate Center, a mix of office,
light industrial, retail, commercial, and restaurants.
'""
...
I'"
..
'""
III
'""
Original Blighting Conditions
III
'""
...
The primary blighting influences at the time of plan adoption for the Tri-City Project Area
are described briefly in the paragraphs below, and can be summarized as follows:
""
III
Age, deterioration, and dilapidation of structures.
.
Mixed character and shifting of uses.
I'"
..
Defective design and physical construction.
""
,
III
The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
I'"
..
Depreciated values and impaired investments.
The existence of lots of irregular form and inadequate size.
I'"
..
The existence of inadequate public improvements.
...
At the time of plan adoption, most of the project consisted of vacant or underdeveloped
parcels. Due to the underdevelopment of the Tri-City Project Area there was a prevalence
of impaired investments and economic maladjustments to such an extent that it constituted a
serious economic burden on the community.
...
I'"
III
...
Current economic conditions in the Tri-City Project Area are characterized by three factors:
1) business migration out of Project Area; 2) commercial vacancy factors; and 3) impaired
investments.
il.
...
III
'""
...
68
I!I
III
...
,.-
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...
...
...
Specific blighting conditions within the Tri-City Project Area are related to building
conditions, property condition, and age and obsolescence of structures and improvements.
Building conditions, property conditions, and factors that indicate functional obsolescence
are common in the Tri-City Project Area.
...
...
...
...
Economic Blight within the Tri-City Project Area is evidenced by a steady decline in many
of the economic indicators including assessed land values, business formations, business
relocations, employment, retail sales, household income and public expenditures. Other
economic indicators show that the market is depressed and that the feasibility of
rehabilitation of many of the older and dilapidated structures is very poor.
...
...
...
III
Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Project Area to implement commercial projects as well as supporting the
development of very low ,low, and moderate income housing. One of the Agency's main
tools in the effort to eradicate blight from the Tri-City Project Area has been the use of
Disposition and Development Agreements (DDA) and Owner Participation Agreements
(OP A). Despite these efforts, many of the blighting conditions listed above remain.
...
III
""
..
""
III.
Reasons for the Selection of the Project Area
r
il.
The selection of the boundaries of the Tri-City Project Area was originally guided by 1) the
California Health and Safety Code, 2) physical, social, and economic conditions in the area
at that time, and 3) the following Agency objectives:
""
III
Eliminate the conditions of blight existing in the Tri-City Project Area.
""
ill
Ensure, as far as possible, that the causes of blighting conditions in the Tri-City
Project Area will be either eliminated or protected against.
...
Provide participation for owners and business tenants in the Tri-City Project Area.
III.
...
Encourage and ensure the redevelopment of the Tri-City Project Area.
...
.
Encourage and foster the economic revitalization of the Tri-City Project Area.
...
Improve the public facilities in the Tri-City Project Area to provide safer and more
efficient public services.
III
...
ill
...
III.
...
III
69
""
ill
...
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~
..
Agency Activities
...
..
As identified in the Report to the City Council for the Tri-City Project Area, there were
detrimental physical, social, and econornic conditions that were negatively impacting this
section of San Bernardino at the time of plan adoption. The Agency had proposed to
alleviate these conditions by undertaking a comprehensive program of public improvements
and by providing a variety of development incentives that was intended to stimulate new
development and rehabilitation activities in the Tri-City Project Area.
...
...
...
...
""
..
This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
""
..
Since plan adoption, the Redevelopment Agency for the City of San Bernardino has
initiated a number of projects in the Tri-City Project Area. The following is a list of major
projects and activities completed in the Project Area within the past five (5) years:
""
..
Construction and fmancing of the new on/off freeway ramp project at Waterman
Avenue and Interstate 10
""
..
.
Development of Rancon Office Building - Owner Participation Agreement
""
IlII
Home Depot and Office Club Retail Center
""
..
Closed escrow with the State of California on a 77 acre residential parcel on Ninth
Street and Del Rosa Avenue
""
..
.
Santa Fe Railway Control Center Developer Assistance
Olive Garden Restaurant - Interstate 10 Freeway access
""
IlII
.
Y oshinoya Beef Bowl Restaurant - Owner Participation Agreement with the
Alexander Haagan Company
...
...
Current Conditions
,..
..
The original blighting conditions described previously, have been partially eliminated from
the Tri-City Project Area. As a result of Agency activities, the area is now characterized by
many market driven commercial projects. Additionally, several nationally recognized chain
retail stores and businesses have located in the Tri-City Project Area. There are however,
blighting conditions that remain, and continue to impair private investment and development
activity in the area. These conditions include:
""
..
""
..
""
III
70
""
lI.
...
c
o
110
""
110
Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
...
100
-
Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and market conditions, lack of
parking, or other similar factors.
...
-
...
Adjacent or nearby uses that are incompatible with each other and which prevent the
economic development of sites within the Tri-City Project Area.
...
..
.
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
...
110
.
Depreciated values and impaired investments.
c
.
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
""
.
..
Lack of adequare, affordable, quality housing.
""
..
Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
...
l.
.
Residential overcrowding or an excess of bars, liquor stores or other businesses that
cater exclusively to adults, and consequently has had a negative effective on public
safety and welfare.
""
..
.
A high crime rate which constitutes a serious threat to public safety and welfare.
...
Five Year Program
..
,..
100
The Agency's principal goals and objectives for the Tri-City Project Area over the next five
year period will continue to focus upon infrastructure upgrades and the development of
vacant, or underutilized parcels with new, employment intensive uses. Some of the
Agency's goals for the next five (5) years include:
,..
100
Creation of incentive programs for existing property owners to reinvest in their
properties.
...
..
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
""
..
""
I.
71
...
..
....
c
o
...
....
...
....
Land acquisition for the creation of public facilities which serve both the immediate
neighborhood and the community at large.
...
.
Improvements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
....
...
. Continued participation in the enhancement of the public infrastructure system.
...
..
.
Acquisition and disposition of property to abate nuisance uses and provide for future
development.
""
..
""
..
Specific programs and potential projects and activities that are proposed for this time period
are outlined below. However, many of the Agency's fmancial obligations for the next five
(5) years are pre-existing contractual obligations which must first be met, prior to the
addition of any new obligations. The Matrix shown in the following table summarizes these
program/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
po"
...
~
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to Agency
initiatives. The program/projects and expenditures represented below rely on the private
sector's ability to obtain financing for projects as well as the Agency's ability to maintain and
increase its tax increment flow. If Agency funds are depleted due to new requirements
imposed by State and local legislation or actions, it is unlikely that projects listed below will
be implemented completely. Note: Thefollowing table does not list pass-through
payments or bond principal and interest payments.
r
...
~
I'"
I.i
...
Tri-City Program/Project Matrix
Five Year Projections
j",
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,..
...
EXISTING OBUGATIONS
,..
Iilo
I. Fiscal Agent - Bond
Monitoring
$30,000
Administrative expenditures which is
necessary to implement Tri-city
Redevelopment Project activities.
""
..
,.
II.
72
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ill
2. Haagen OPA Developer $624,960 Development serves as a catalyst for new
Assistance for on-site development; lack of investment and
improvements (Sam's Club reinvestment in the Tri-City Project Area;
Warehouse) depreciated values and impaired investments;
without Agency intervention and fmancial
assistance the development would have been
infeasible.
3. Weed Abatement $5,000 Elimination of a visual blighting
throughout the Tri-City characteristic.
Project Area on Agency-
owned properties
4. Agency Legal Services $50,000 Administrative expenditure which is
necessary to implement Tri-City
Redevelopment Project activities.
5. Agency Consulting Services $130,000 Administrative expenditure which is
necessary to implement Tri-City
Redevelopment Project activities.
6. Agency Professional $180,000 Administrative expenditure for City
Services reimbursables which is necessary to
implement Tri-City Redevelopment Project
. activities.
7. Agency Administration $247,700 Administrative expenditure which is
necessary to implement Tri-City
Redevelopment Project activities.
8. Best Buy Store $100,000 Depreciated values and impaired
investments.
,..
,
..
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,
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Funding Sources
,..
l.
The Agency has identified sources of funds for the programs and activities planned over the
next five years in the Project Area. These funding sources include:
""
ill
Sale of tax allocation bonds supported by tax increment revenues from the Project
Area. It is important to note that most of the Tri-City Project Area bond funds have
be encumbered for existing expenses.
""
ill
""
III
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
""
...
73
,..
l.
..
,..-
'-
.......,
~
110
..
...
..
The following Increment Projection Table indicates that the tax increment projections for
the next five (5) years are relative low and total $904,743 for the five (5) year period. The
category of "Current Obligations" includes obligations to set aside funds into the Low and
Moderate Housing Fund, to make Tri-City Project Area pass-through payments, to service
existing debt on previously issued bonds, and to meet existing contractual obligations. In
accordance with previous Agency practices, transfers to other project areas from Tri-City
Project Area will be made (as needed) in order to address tax increment shortages for the
other project areas. It should be noted that a variety of factors influence and affect the level
of tax increment available for projects. Factors which may increase the amount of tax
increment available for projects, include but are not limited to, improved property values
within the project area, improved economic conditions, and public/private partnerships in
which the Agency receives a return on its investment.
...
..
..
-
...
II"
..
...
Tri-City Net Increment Projections
...
""
110
...
1994-1995 $1,393,822 $278,764 $925,333(2) $189,725
1995-1996 $1,421,698 $284,340 $923,048 $214,310
1996-1997 $1,450,132 $290,026 $1,015,242 $144,864
1997-1998 $1,479,135 $295,827 $1,015,378 $167,930
1998-1999 $1,508,717 $301,743 $1,019,060 $187,914
(1) Includes debt service, pass-throughs, and existing contractual obligations.
(2) Includes ERAF payment
...
...
..
..
..
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..
110
""
..
..
..
..
...
...
...
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...
74
...
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CITY OF SAN BERNARDINO
TRI-CITY REDEVELOPMENT PROJECT AREA
Date
PART A
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General Plan ILand Use 1"
Designations NORTH
l PFC I Public Flood Control
"R~ Residential Medium
I RS I Residential Suburban
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CITY OF SAN BERNARDINO
TRI-CITY REDEVELOPMENT PROJECT AREA
Date
PART B
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General Plan ILand Use
Designations
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NORTH
_ Commercial Regional
I PFC I Public Flood Control
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H. SOUTH VALLE PROJECT
""
..
The South Valle Redevelopment Project Area was adopted by the Mayor and Common
Council/Community Development Commission on July 9, 1984. the South Valle
Redevelopment Project Area is located in the southern portion of the City, south of
Interstate 10 Freeway. The South Valle Project Area is adjacent to the Commercenter area
of the Southeast Industrial Park and Subarea II of the Tri-City Redevelopment Project
Area. The area has inunediate access to the Interstate 10 and Interstate 215 Freeway
interchanges. The major uses of the South Valle Project Area include commercial and light
industrial development.
'"'
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III
""
..
Original Blighting Conditions
'"'
...
The primary blighting influences at the time of plan adoption for the South Valle Project
Area are described briefly in the paragraphs below, and can be summarized as follows:
'"'
I..
Age, deterioration, and dilapidation of structures.
'"'
..
Mixed character and shifting of uses.
Defective design and physical construction.
'"'
...
The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
'"'
..
Depreciated values and impaired investments.
...
The existence of lots of irregular form and inadequate size.
..
. The existence of inadequate public improvements.
...
..
At the time of plan adoption, properties within the South Valle Project Area were
improved, or partially improved with a mixture of commercial, industrial, and limited
residential uses, as well as various public/quasi-public and open space sites. Conditions
such as dislocation, deterioration and disuse resulting from faulty planning, the subdivision
and sale of lots of irregular form and shape, and inadequate size for usefulness and
development, and a prevalence of impaired investments and economic maladjustments had
led to a reduction of, or lack of, proper utilization of the area to such an extent that it
constituted a serious economic burden on the community.
...
...
'"'
..
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...
...
77
...
..
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...
Economic conditions in the South Valle Project Area are characterized by three factors: 1)
business migration out of Project Area; 2) conunercial vacancy factors; and 3) impaired
investments. Social blight is characterized by worsening historical and current demographic
trends and conditions, which show increases in crime and general social maladjustment.
III
""
...
Specific blighting conditions within the South Valle Project Area are related to deteriorating
building conditions, declining property condition, lack of access for the disabled, building
code violations, and age and obsolescence of structures and improvements. Building
conditions, property conditions, and factors that indicate functional obsolescence are
conunon in the South Valle Project Area.
""'
..
..
III
Economic Blight within the South Valle Project Area is evidenced by a steady decline in
many of the economic indicators including assessed land values, business formations,
business relocations, employment, household income and public expenditures.
,.
III
...
Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the South Valle Project Area to implement conunercial projects through the
utilization of Disposition and Development Agreements (DDA) and Owner Participation
Agreements (OP A). Despite these efforts, many of the blighting conditions listed above
remain.
""'
..
...
....
...
These conditions of blight and the subsequent under productivity of the South Valle Project
Area have placed the subject properties in a very unfavorable competitive position with
respect to newer and more comprehensively planned developments.
...
~
Reasons for the Selection of the Project Area
...
...
The selection of the boundaries of the South Valle Project Area was originally guided by 1)
the California Health and Safety Code,2) physical, social, and economic conditions in the
area at that time, and 3) the following Agency objectives:
...
..
.
Eliminate the conditions of blight existing in the South Valle Project Area.
...
...
Ensure, as far as possible, that the causes of blighting conditions in the South Valle
Project Area will be either eliminated or protected against.
...
...
Provide participation for owners and business tenants in the South Valle Project
Area.
-
...
.
Encourage and ensure the redevelopment of the South Valle Project Area.
...
III
Encourage and foster the economic revitalization of the South Valle Project Area.
..
...
78
...
..
...
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...
,..
...
.
Improve the public facilities in the South Valle Project Area to provide safer and
more efficient public services.
...
...
Agency Activities
...
...
As identified in the Report to the City Council for the South Valle Project Area, there were
detrimental physical, social, and economic conditions that were negatively impacting this
area of San Bernardino at the time of plan adoption. The Agency had proposed to alleviate
these conditions by providing a variety of development incentives that was intended to
stimulate new development and rehabilitation activities in the South Valle Project Area.
...
...
'"'
...
This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
...
...
!"'"
Since plan adoption, the Redevelopment Agency for the City of San Bemardino has
initiated a number of projects in the South Valle Project Area. The following is a list of
major projects and activities completed in the Project Area within the past five (5) years:
...
!"'"
...
Sunset Commercial Center Developer Assistance
...
Construction of street connecting Redlands Boulevard and Caroline Street in
conjunction with Portugal and Neal.
...
...
.
Portugal & Neal Commercial Center Financial Assistance - Demolition of blighted
structures and completed development of 100,000 square feet of commercial
buildings
loot
...
...
Club Center Development
...
.
Austrailian Beach Oub Assistance (Technical and Financial)
..
.
Hunts Lane Railroad Crossing Upgrade (Jointly Funded Project with the City of
Colton)
...
...
...
Arco Service Station and AM/PM Mini-Mart (Agency Loan Guarantee)
...
Park Place Homes land acquisition
...
Current Conditions
...
...
The original blighting conditions described previously, have been partially elinunated from
the South Valle Project Area. As a result of Agency activities, the area is now
..
,..
...
79
...
...
...
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-
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...
-
characterized by opportunities for business development and growth, as the South Valle
Project Area is ideal for commercial and light industrial developmet. The South Valle
Project Area has rail service and immediate access to the 1-10 and 1-215 interchanges. In
spite of these many features, there are however, blighting conditions that remain, and
continue to impair private investment and development activity in the area. These
conditions include:
...
-
...
...
...
Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
..
...
...
.
Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and market conditions, lack of
parking, or other similar factors.
...
..
...
Adjacent or nearby uses that are incompatible with each other and which prevent the
economic development of sites within the South Valle Project Area.
...
...
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
...
...
Depreciated values and impaired investments.
-
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
...
-
Lack of adequare, affordable, quality housing.
...
-
Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
...
...
.
Residential overcrowding or an excess of bars, liquor stores or other businesses that
cater exclusively to adults, and consequently has had a negative effective on public
safety and welfare.
-
-
...
A high crime rate which constitutes a serious threat to public safety and welfare.
...
Five Year Program
...
The Agency's principal goals and objectives for the SOUtll Valle Project Area over the next
five year period will continue to focus upon infrastructure upgrades and the development of
vacant, or underutilized parcels with new, employment intensive uses. Some of the
Agency's goals for the next five (5) years include:
...
...
...
...
...
80
...
..
...
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..
Creation of incentive programs for existing property owners to reinvest in their
properties.
...
1M
.
Creation of viable housing options within the Project Area that span a range of
incomes, including honsing for the homeless and formerly homeless.
...
1M
.
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
,.
1M
.
Land acquisition for the creation of public facilities which serve both the inunediate
neighborhood and the community at large.
...
1M
.
hnprovements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
,.
ill
,.
l.
Continued participation in the enhancement of the public infrastructure system.
...
Acquisition and disposition of property to abate nuisance uses and provide for future
development.
1M
Specific programs and potential projects and activities that are proposed for this time period
are outlined below. However, many of the Agency's financial obligations for the next five
(5) years are pre-existing contractual obligations which must first be met, prior to the
addition of any new obligations. The Matrix shown in the following table summarizes these
prograrn/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
...
100
...
..
...
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to Agency
initiatives. The prograrn/projects and expenditures represented below rely on the private
sector's ability to obtain fmancing for projects as well as the Agency's ability to maintain and
increase its tax increment flow. If Agency funds are depleted due to new requirements
imposed by State and local legislation or actions, it is unlikely that projects listed below will
be implemented completely. Note; The following table does not list pass-through
payments or bond principal and interest payments.
..
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South Valle Program/Project Matrix
Five Year Projections
..
...
...
EXISTING OBUGATIONS
...
..
1. Portugal- Neal Developer $1,200,000
Assistance for development of
commercial center line of
credit.
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2. Agency Legal Services $50,000
...
...
...
3. Agency Consulting Services $130,000
...
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4. Agency Professional
Services
$180,000
...
...
...
5. Agency Administration
$307,300
..
...
6. Fiscal Agent - Bond
Monitoring
$50,000
...
...
..
Funding Sources
...
Depreciated or stagnant property values and
impaired investments; lack of necessary
commercial facilities that are normally found
in neighborhoods.
Administrative expenditure which is
necesssary in order to implement the South
Valle Redevelopment Project Area activities.
Administrative expenditure which is
necessary in order to implement the South
Valle Redevelopment Project Area activities.
Administrative expenditure which is
necessary in order to implement South Valle
Redevelopment Project Area activities.
Administrative expenditure which is
necessary in order to implement South Valle
Redevelopment Project Area activities.
Administrative expenditure which is
necessary in order to implement South Valle
Redevelopment Project Area activities.
...
The Agency has identified sources of funds for the programs and activities planned over the
next five years in the South Valle Project Area. These funding sources include:
...
Sale of tax allocation bonds supported by tax increment revenues from the South
Valle Project Area. It is important to note that most of the South Valle Project
Area bond funds have been encumbered for existing expenses.
loll
...
...
...
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
..
,..
..
,..
...
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The following Increment Projection Table indicates that the tax increment projections for
the next five (5) years are negative and that the Agency does not anticipate a sUIplus of tax
increment revenue. The negative figures projected are the result of Agency obligations to
set aside funds into the Low and Moderate Housing Fund, to make South Valle Project
Area pass-through payments (when applicable), to service existing debt on previously issued
bonds, and to meet existing contractual obligations. In accordance with existing Agency
practices, transfers from other project areas will be made to the South Valle Project Area,
as necessary, in order to address current obligations. It should be noted that a variety of
factors influence and affect the level of tax increment available for projects. Factors which
may increase the amount of tax increment available for projects, include but are not limited
to, improved property values within the project area, improved economic conditions, and
public/private partnerships in which the Agency receives a return on its investment.
...
...
...
~
...
...
...
...
...
South Valle Net Increment Projections
...
...
II.
..
...
1994-1995 $582,625 $116,525 $1,066,347(2) $(600,247)
1995-1996 $594,278 $118,856 $990,236 $(514,814)
1996-1997 $606,164 $121,233 $990,236 $(505,563)
1997-1998 $618,287 $123,657 $989,917 $(495,287)
1998-1999 $630,653 $126,131 $998,307 $(493,785)
...
...
...
...
...
...
(1)
(2)
(3)
Includes debt service, pass-throughs, and existing contractual obligations.
Includes ERAF payment
Deficit will be met through cash reserves, other income such as land sale, interest earnings,
notes receivable, rent receivable and developer reimbursement.
...
...
...
...
...
...
...
...
..
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CITY OF SAN BERNARDINO
SOUTH VALLE REDEVELOPMENT PROJECT AREA
Date
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General Plan ILand Use l'
Designations NORTH
~~1II Commercial General
_ Commercial Regional
IL I Induslriallighl
~ Residential Medium Heavy
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L
UPTOWN PROJECT
The Uptown Redevelopment Project Area was adopted by the Mayor and Common
Council/Community Development Commission on June 16, 1986. The Uptown
Redevelopment Project Area is located is divided into two subareas identified as Subarea A,
consisting of 348 acres, and Subarea B, consisting of 84 acres. Subarea A generally
encompasses "E" Street, Baseline, and Highland Avenue business corridors which include
must of the City's service and retail business areas. Subarea B is bounded by Mt. Vernon
Avenue, King Street, Rialto Avenue and the Interstate 215 Freeway.
Original Blighting Conditions
The primary blighting influences at the time of plan adoption for the Uptown Project Area
are described briefly in the paragraphs below, and can be summarized as follows:
. Age, deterioration, and dilapidation of structures.
.
Mixed character and shifting of uses.
.
Defective design and physical construction.
.
The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
.
Depreciated values and impaired investments.
.
The existence of lots of irregular form and inadequate size.
.
The existence of inadequate public improvements.
At the time of plan adoption, properties within the Uptown Project Area were improved, or
partially improved with a mixture of commercial, industrial, and residential uses, as well as
various public/quasi-public and open space sites. The condition of the Uptown Project Area
was such that it constituted a serious economic burden on the community. In particular, the
Uptown Project Area suffered from dislocation, deterioration and disuse resulting from
faulty planning, the subdivision and sale of lots of irregular form and shape, and inadequate
size for usefulness and development, and a prevalence of impaired investments and
economic maladjustments. The combination of the above mentioned conditions has led to a
reduction of, or lack of, proper utilization of the Uptown Project Area.
85
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Economic conditions in the Uptown Project Area are characterized by three factors: 1)
business migration out of Project Area; 2) commercial vacancy factors; and 3) impaired
investments. Social blight is characterized by trends which indicate increases in crime,
transiency, and general social maladjustment.
...
~
...
Specific blighting conditions within the Uptown Project Area are related to dilapidating
building conditions, declining property conditions, seismic and structural reinforcement,
buildings without rrre sprinklers, presence of asbestos, exposure to noise, lack of access for
the disabled, building code violations, and age and obsolescence of structures and
improvements. Building conditions, property conditions, and factors that indicate functional
obsolescence are common in the Uptown Project Area.
...
...
...
...
...
Economic Blight within the Uptown Project Area is evidenced by many negative economic
indicators including declining assessed land values, fewer business formations, many
business relocations of out the Uptown Project Area, rising unemployment figures,
declining retail sales, lower household income and public expenditures. Other economic
indicators show that the market is depressed and that the feasibility of rehabilitation of many
of the older and dilapidated structures is very poor.
..
...
...
...
""
Conditions of severe social blight are also prevalent within the Uptown Project Area.
Specific indicators of population, economic status, housing, crime, transiency, and mental
health combine to show that social blight pervades the Uptown Project Area. On average,
many Uptown Project Area residents earn considerably less than residents outside the
Project Area. Crime, transiency, mental health problems, and alcohol and drug addiction
are far more prevalent within the core areas of the Uptown Project Area than in the rest of
the region.
...
...
...
..
...
Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Uptown Project Area to implement commercial projects as well as supporting
the development of very low, low, and moderate income housing. Despite these efforts,
many of the blighting conditions listed above remain.
...
..
..
...
These conditions of blight and the subsequent under productivity of the Uptown Project
Area have placed the subject properties in a very unfavorable competitive position with
respect to newer and more comprehensively planned developments.
..
...
..
Reasons for the Selection of the Project Area
...
The selection of the boundaries for the Uptown Project Area was originally guided by 1) the
California Health and Safety Code, 2) physical, social, and economic conditions in the area
at that time, and 3) the following Agency objectives:
...
...
...
""
86
..
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...
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..
.
Enhance the quality of life in the Uptown Project Area and promote the health,
safety, and welfare of the community.
-
~
Develop standards for architectural and urban design principles which reflect a high
level of concern for the w'ban environment and which promote a quality image.
""
lit
.
Eliminate the conditions of blight existing in the Uptown Project Area.
..
1Io
Ensure, as far as possible, that the causes of blighting conditions in the Uptown
Project Area will be either eliminated or protected against.
""
1Io
.
Provide participation for owners and business tenants in the Uptown Project Area.
-
.
Encourage and ensure the redevelopment of the Uptown Project Area.
...
. Encourage and foster the economic revitalization of the Uptown Project Area.
""
ioo
.
Improve the public facilities in the Uptown Project Area to provide safer and more
efficient public services.
..
...
Agency Activities
""
-
As identified in the Report to the City Council for the Uptown Project Area, there were
detrimental physical, social, and economic conditions that were negatively impacting this
section of San Bernardino at the time of plan adoption. The Agency had proposed to
alleviate these conditions by providing a variety of development incentives that was
intended to stimulate new development and rehabilitation activities in the Uptown Project
Area.
looo
..
..
-
-
11ris section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
-
-
Since plan adoption, the Redevelopment Agency for the City of San Bernardino has
initiated a nwnber of projects in the Uptown Park Project Area. The following is a list of
major projects and activities completed in the Project Area within the past five (5) years:
..
-
...
.
Smart and Final Shopping Center Rehabilitation (80,000 square foot center)
""
.
Games for Fun International Property Acquisition and Expansion
..
.
Baseline Area Business Association Security District Fonnation
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Assisted in the development of the physical improvements of the building located on
the northwest comer of Baseline and "E" Streets
.
Coordinated major landscape upgrade for the northeast comer of Ninth Street and
W aterman Avenue
.
Baseline Area Business Association Parking District (Acquisition of Parcels for
future use as a parking area for customers)
. Baseline Area Business Association Design Guidelines for Facade Improvements
Custom Tinted Windows Financial Assistance - Small Business Loan
Current Conditions
The original blighting conditions described previously, have been partially eliminated from
the Uptown Project Area. As a result of Agency activities, the area is now characterized by
active involvement by many property owners and residents. In particular, the Baseline Area
Business Association in conjunction with the Agency is worlcing to revitalize a significant
portion of Baseline Street. Plans for this major corridor include facade improvements,
street lighting, tree planting, banner installation and other streetscape improvements. There
are however, blighting conditions that remain, and continue to impair private investment and
development activity in the area. These conditions include:
.
Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
.
Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and marlcet conditions, lack of
parlcing, or other similar factors.
.
Adjacent or nearby uses that are incompatible with each other and which prevent the
economic development of sites within the Uptown Project Area.
.
Existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development.
.
Depreciated values and impaired investments.
.
The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
88
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110
...
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Lack of adequare, affordable, quality housing.
.
Lack of necessary connnercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
.
Residential overcrowding or an excess of bars, liquor stores or other businesses that
cater exclusively to adults, and consequently has had a negative effective on public
safety and welfare.
. A high crime rate which constitutes a serious threat to public safety and welfare.
Five Year Program
The Agency's principal goals and objectives for the Uptown Project Area over the next five
year period will continue to focus upon infrastructure upgrades and the development of
vacant, or underutilized parcels with new, employment intensive uses. Some of the
Agency's goals for the next five (5) years include:
.
Creation of incentive programs for existing property owners to reinvest in their
properties through the utilizaton of Disposition and Development Agreements
(DDA) and Owner Participation Agreements (OP A).
.
Creation of viable housing options within the Uptown Project Area that span a range
of incomes, including housing for the homeless and formerly homeless.
.
Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
.
Land acquisition for the creation of public facilities which serve both the immediate
neighborhood and the community at large.
.
Continued preservation of historically significant structures.
.
Improvements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
.
Continued participation in the enhancement of the public infrastructure system.
.
Acquisition and disposition of property to abate nuisance uses and provide for future
development.
Specific programs and potential projects and activities that are proposed for this time period
are outlined below. The Matrix shown in the following table summarizes these
89
...
....
'-
...
..
.'"""
u
...
program/projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to Agency
initiatives. The program/projects and expenditures represented below rely on the private
sector's ability to obtain financing for projects as well as the Agency's ability to maintain and
increase its tax increment flow. If Agency funds are depleted due to new requirements
imposed by State and local legislation or actions, it is unlikely that projects listed below will
be implemented completely. Note: The following table does not include pass-through
payments or bond principal and interest payments.
....
...
..
...
...
...
..
...
...
".
..
Uptown programlProject Matrix
Five Year Projections
r
....
EXISTING OBUGATIONS
,..
...
1. Agency Legal Services
$75,000
'"'
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2. Agency Consulting Services $20,000
,.
..
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3. Agency Professional
Services
$170,000
...
...
4. Agency Administration
$359,000
....
...
....
5. Fiscal Agent - Bond
Monitoring
$20,000
...
....
,...
..
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..
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..
Administrative expenditure which allows for
the implementation of Uptown
Redevelopment Project Area activities.
Administrative expenditure which allows for
the implementation of Uptown
Redevelopment Project Area activities.
Administrative expenditure which allows for
the implementation of Uptown
Redevelopment Project Area activities.
Administrative expenditure which allows for
the implementation of Uptown
Redevelopment Project Area activities.
Administrative expenditure which allows for
the implementation of Uptown
Redevelopment Project Area activities.
90
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6. Weed Abatement $5,000 Removal of visual blight throughout the
throughout the Uptown Uptown Project Area.
Project Area on Agency-
owned property.
...
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..
Funding Sources
...
i.
The Agency has identified sources of funds for the programs and activities planned over the
next five years in the Uptown Project Area. These funding sources include:
...
.
Sale of tax allocation bonds supported by tax increment revenues from the Project
Area. It is important to note that most of the Uptown Project Area bond funds have
be encumbered for existing expenses.
..
...
iIIII
.
Tax increment revenues over and above the amounts required to cover debt service
on the tax allocation bonds.
,..
..
..
The following illcrement Projection Table indicates that the tax increment projections for
the next five (5) years are conservative and total $196,230 for the five (5) year period. The
category of "Current Obligations" includes obligations to set aside funds into the Low and
Moderate Housing Fund, to service existing debt on previously issued bonds, and to meet
existing contractual obligations. ill accordance with previous Agency practices, transfers to
other project areas from Uptown Project Area will be made (as needed) in order to address
tax increment shortages for the other project areas. It should be noted that a variety of
factors influence and affect the level of tax increment available for projects. Factors which
may increase the amount of tax increment available for projects, include but are not limited
to, improved property values within the project area, improved economic conditions, and
public/private partnerships in which the Agency receives a return on its investment.
...
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Uptown Net Increment Projections
to.
...
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1994-1995 $430,145 $86,029 $269,640(2) $74,476
1995-1996 $438,748 $87,750 $324,558 $26,440
1996-1997 $447,523 $89,505 $328,578 $29,440
1997-1998 $456,473 $91,295 $332,218 $32,960
1998-1999 $465,603 $93,121 $339,568 $32,914
(1) Includes debt service and existing contractual obligations
(2) Includes ERAF payment
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CITY OF SAN BERNARDINO
UPTOWN REDEVELOPMENT PROJECT AREA
Date
PART A
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CITY OF SAN BERNARDINO
UPTOWN REDEVELOPMENT PROJECT AREA
Date
PART B
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I~M..~ Residential Medium
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MT. VERNON CORRIDOR PROJECT
The Mt. Vernon Corridor Redevelopment Project Area was adopted by the Mayor and
Common Council/Community Development Commission on June 25,1990. The Mt.
Vernon Corridor Redevelopment Project Area is located in the western section of the City.
The Project Area is divided into three (3) subareas identified as Subarea A, consisting of
1,722 acres, Subarea B, consisting of 115 acres, and Subarea C, consisting of 101 acres.
Subarea A incorporates commercial uses along its main thoroughfares, Mt. Vernon Avenue
and Foothill Boulevard. The northwest portion of this subarea is uses as public flood
control land. Subarea B features light industrial and heavy manufacturing. Residential uses
are predominate along the freeway between Fifth Street and Baseline. Subarea C consists
entirely of flood control land, and is west of the Interstate 215 Freeway and northwest of
Orange Show Road.
Original Blighting Conditions
The primary blighting influences at the time of plan adoption for the Mt. Vernon Corridor
Project Area are described briefly in the paragraphs below, and can be summarized as
follows:
Age, deterioration, and dilapidation of structures.
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Mixed character and shifting of uses.
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Defective design and physical construction.
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The laying out of lots in disregard for the physical character of the ground and
surrounding conditions.
. Depreciated values and impaired investments.
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The existence of lots of irregular form and inadequate size.
The existence of inadequate public improvements.
At the time of plan adoption, properties within the Mt. Vernon Corridor Project Area were
improved, or partially improved with a mixture of commercial, industrial, and residential
uses, as well as various public/quasi-public and open space sites. Due to the conditions of
the Mt. Vernon Corridor Project Area, a serious economic burden was placed on the
community. The conditions which resulted in a negative burden on the community include
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dislocation, deterioration and disuse resulting from faulty planning, the subdivision and sale
of lots of irregular form and shape, and inadequate size for usefulness and development,
undevelopable residual parcels resulting from county flood control and State highway
construction, and a prevalence of impaired investments and economic maladjustments.
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Economic conditions in the Mt. Vernon Corridor Project Area are characterized by three
factors: I) business migration out of Project Area; 2) commercial vacancy factors; and 3)
impaired investments. Social blight is characterized by trends and conditions indicating
increases in crime, transiency, and general social maladjustment.
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Specific blighting conditions within the Mt. Vernon Corridor Project Area are related to
deteriorating building conditions, declining property condition, inadequate seismic and
structural reinforcement, buildings without fire sprinklers, existence of asbestos, exposure
to noise,lack of access for the disabled, building code violations, and age and obsolescence
of structures and improvements. Building conditions, property conditions, and factors that
indicate functional obsolescence are common in the Mt. Vernon Corridor Project Area.
"'"
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Economic Blight within the Mt. Vernon Corridor Project Area is evidenced by a steady
decline in many of the economic indicators including decreasing assessed land values, lack
of new business formations, business relocations of the Mt. Vemon Corridor Project Area,
rising unemployment fIgures, declining retail sales, and a reduction in household income and
public expenditures. Other economic indicators show that the market is depressed and that
the feasibility of rehabilitation of many of the older and dilapidated structures is very poor.
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Conditions of severe social blight are also prevalent within the Mt. Vernon Corridor Project
Area. SpecifIc indicators of population, economic status, housing, crime, transiency, and
mental health combine to show that social blight pervades the Project Area. On average,
Mt. Vernon Corridor Project Area residents earn considerably less than residents outside
the Project Area. Crime, transiency, mental health problems, and alcohol and dmg
addiction are far more prevalent within the Mt. Vernon Corridor Project Area than in the
rest of the region.
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Many of these blighting conditions have begun to be addressed by the Agency through the
development of new projects, both public and private. The Agency has participated with
owners in the Mt. Vernon Corridor Project Area to implement projects. Despite these
efforts, many of the blighting conditions listed above remain.
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These conditions of blight and the subsequent under productivity of the Mt. Vernon
Corridor Project Area have placed the subject properties in a very unfavorable competitive
position with respect to newer and more comprehensively planned developments.
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Reasons for the Selection of the Project Area
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The selection ofthe boundaries of the Mt. Vernon Corridor Project Area was originally
guided by I) the California Health and Safety Code, 2) physical, social, and economic
conditions in the area at that time, and 3) the following Agency objectives:
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. Eliminate the conditions of blight existing in the Mt. Vernon Corridor Project Area.
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Ensure, as far as possible, that the causes of blighting cunditions in the Mt. Vernon
Corridor Project Area will be either eliminated or protected against.
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Provide participation for owners and business tenants in the Mt. Vernon Corridor
Project Area through the use of Disposition and Development Agreements (DDA)
and Owner Participation Agreements (OP A).
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Encourage and ensure the redevelopment ofthe Mt. Vernon Corridor Project Area.
...
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Encourage and foster the economic revitalization of the Mt. Vernon Corridor
Project Area.
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Improve the public facilities in the Mt. Vernon Corridor Project Area to provide
safer and more efficient public services.
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Agency Activities
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As identified in the Report to the City Council for the Mt. Vernon Corridor Project Area,
there were detrimental physical, social, and economic conditions that were negatively
impacting this section of San Bernardino at the time of plan adoption. The Agency had
proposed to alleviate these conditions by undertaking a comprehensive program of public
improvements and by providing a variety of development incentives that was intended to
stimulate new development and rehabilitation activities in the Mt. Vernon Corridor Project
Area.
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This section will examine the redevelopment activities that were initiated by the Agency in
an attempt to achieve the goals stated above, and facilitate the elimination of blighting
conditions presented herein.
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Since plan adoption, the Redevelopment Agency for the City of San Bernardino has
initiated a number of projects in the Mt. Vernon Corridor Project Area. The following is a
list of major projects and activities completed in the Project Area within the past five (5)
years:
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Project Home Run Infill Housing
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Adopted Mt. Vernon Corridor Redevelopment Project Area Plan
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Initiated a Market Feasibility study for the development of a theme shopping area in
the Mt. Vernon Corridor Project Area.
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Taco Tia Restaurant Off-site Improvements
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Paseo Las Placitas Specific Plan
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Anita's Bakery Small Business Loan
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Santa Fe Antomobile Distribution Facility
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Metrolink Commuter Rail Station
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Planning & Design for Santa Fe Depot Restoration
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Acquisition and Demolition of Substandard Structures Including Property located
at 578 North Mt. Vernon Avenue.
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Current Conditions
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The original blighting conditions described previously, have been partially eliminated from
the Mt. Vernon Project Area. As a result of Agency activities, the area is now
characterized by opportunities for future growth and development. The development of the
Specific Plan for the Mt. Vernon Corridor will allow for well planned development. The
unique ethnic flair of the Mt. Vernon Corridor provides a theme for many future
developments. There are however, blighting conditions that remain, and continue to impair
private investment and development activity in the area. These conditions include:
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Unsafe and unhealthy buildings due to serious code enforcement violations,
dilapidation and deterioration, defective design or physical construction, faulty or
inadequate utilities, or other similar factors.
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Buildings in which the economic viability is substantial hindered due to substandard
design, inadequate size given present standards and market conditions, lack of
parking, or other similar factors.
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Adjacent or nearby uses that are incompatible with each other and which prevent the
economic development of sites within the Uptown Project Area.
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Existence of subdivided lots of irregular fonn and shape and inadequate size for
proper usefulness and development.
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Depreciated values and impaired investments.
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The existence of inadequate public improvements including sufficient access to the
area which is the result of circulation problems.
Lack of adequare, affordable, quality housing.
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Lack of necessary commercial facilities that are normally found in neighborhoods,
such as grocery stores, drug stores, and banks.
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Residential overcrowding or an excess of bars, liquor stores or other businesses that
cater exclusively to adults, and consequently has had a negative effective on public
safety and welfare.
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A high crime rate which constitutes a serious threat to public safety and welfare
Five Year Program
The Agency's principal goals and objectives for the Mt. Vernon Corridor Project Area over
the next five year period will continue to focus upon infrastructure upgrades and the
development of vacant, or underutilized parcels with new, employment intensive uses.
Some of the Agency's goals for the next five (5) years include:
Implementation of the Paseo Las Placitas Specific Plan
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Creation of incentive programs for existing property owners to reinvest in their
properties.
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Creation of viable housing options within the Mt. Vernon Corridor Project Area that
span a range of incomes, including housing for the homeless and fonnerly homeless.
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Creative implementation of catalyst projects which spur reinvestment on
surrounding blocks.
Land acquisition for the creation of public facilities which serve both the immediate
neighborhood and the community at large.
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Enhancement of ceremonial streets which function as the focal points of their
individual neighborhoods.
Continued preservation of historically significant structures.
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Improvements to existing water and sewer lines, streets, sidewalks, parkways, and
lighting in the public right-of-way.
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Continued participation in the enhancement of the public infrastructure system.
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Acquisition and disposition of property to abate nuisance uses and provide for future
development.
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Specific programs and potential projects and activities that are proposed for this time period
are outlined below. The Matrix shown in the following table summarizes these
program!projects and indicates which blighting conditions will then be alleviated.
Approximate project costs are also presented for each activity.
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A number of programs and potential projects have been identified which would reduce or
eliminate many of the blighting influences listed previously. Whereas State law requires a
five-year implementation plan regardless of economic conditions existing during the five-
year period, it should be understood that the timing of these program/projects may be
greatly influenced by the recession and the ability of the private sector to respond to Agency
initiatives. The program/projects and expenditures represented below rely on the private
sector's ability to obtain fmancing for projects as well as the Agency's ability to maintain and
increase its tax increment flow. If Agency funds are depleted due to new requirements
imposed by State and local legislation or actions, it is unlikely that projects listed below will
be implemented completely.
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Mt. Vernon Corridor ProgramlProject Matrix
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EXISTING OBUGATIONS
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1. Employment Linkage
Assistance for New Age
Waler Technology
$1,000
Lack of investment and reinvestment in the
Mt. Vernon Corridor Project Area;
depreciated values and impaired investments
which are alleviated with Agency
assistuance.
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2. Metrolink Security, $300,000
Maintenance and Operational
Expenses
Depreciated values and impaired
investments; a high crime rate that
constitutes a serious threat to the public
safety and welfare ofresidents.
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3. Agency Legal Services $165,000 Administrative expenditure allows for the
facilitation of Mt. Vernon Corridor
Redevelopment Project activities (i.e.
administration of OP A and DDA).
4. Agency Consulting Services $42,500 Administrative expenditure allows for the
facilitation ofMt. Vernon Corridor
Redevelopment Project activities (i.e.
administration of OP A and DDA).
5. Agency Professional $260,000 Administrative expenditure allows for the
Services facilitation of Mt. Vernon Corridor
Redevelopment Project activities (i.e.
administration of OP A and DDA).
6. Agency Administration $762,000 Administrative expenditure allows for the
facilitation of Mt. Vernon Corridor
Redevelopment Project activities (i.e.
administration of OP A and DDA).
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Funding Sources
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The Agency has identified sources of funds for the programs and activities planned over the
next five years in the Mt. Vernon Corridor Project Area. These funding sources include:
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Future sale of tax allocation bonds supported by tax increment revenues from the
Mt. Vernon Corridor Project Area.
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Tax increment revenues. It is important to note that most of the Mt. Vernon
Corridor Project Area tax increment has been earmarked for anticipated
expenditures.
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The following Increment Projection Table indicates that the tax increment projections for
the next five (5) years are negative and that the Agency does not anticipate a surplus of tax
increment revenue. The negative figures projected are the result of Agency obligations to
set aside funds into the Low and Moderate Housing Fund, to make Mt. Vernon Corridor
Project Area pass-through payments, and to meet existing contractual obligations. In
accordance with existing Agency practices, loans from other project areas will be made to
the Mt. Vernon Corridor Project Area, as necessary, in order to address obligations.
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Mt. Vernon Corridor Net Increment Projections
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1994-1995 $159,377 $31,875 $180,500 $(52,998)
1995-1996 $162,565 $32,513 $364,500 $(234,448)
1996-1997 $165,816 $33,163 $368,500 $(235,847)
1997-1998 $169,132 $33,826 $371,500 $(236,194)
1998-1999 $172,515 $34,503 $375,500 $(237,488)
(1) Includes pass-tluoughs, and existing contractual obligations
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CITY OF SAN BERNARDINO
MT. VERNON CORRIDOR
REDEVELOPMENT PROJECT AREA
Date
General Plan ILand Use 1"-
Designations NORTH
Il€.CllI~1I!5)1I1 Commercial General
1~l:;L~1 Commercial General'
I-.aEl-1 Commercial Heavy
IE .~ Industrial Extractive
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I PF I Public Facility
I PFC I Public Flood Control
I PP I Public Park
I~F.IMWt Residential Medium
RS I Residential Suburban
lIiUl(~1 Residential Urban
'Theme Center Specific Plan
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CITY OF SAN BERNARDINO
MT. VERNON CORRIDOR
REDEVELOPMENT PROJECT AREA
Date
PART B
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General Plan ILand Use l'
Designations NORTH
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J IE "."1 Induslrlal Extraclive
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REPLACEMENT INCLUSIONARY HOUSING PLAN
PURPOSE AND CONTENT
The following document is the Housing Affordability Compliance Plan (the"Compliance
Plan") for the City of San Bernardino Redevelopment Agency. This Compliance plan has
been prepared to meet the requirements of Section 3 3413(b)( 4) of the California
Community Redevelopment Law, Health and Safety Code Section 33000 et. seq. (the
"Law"). Section 33413 (b)(4) was added to the Law by the adoption of Assembly Bill
315 ("AB 315) in 1991, and amended, along with other provisions of, by the Community
Redevelopment Law Reform Act of 1993 Assembly Bill 1290 ("AB 1290"). As amended
by AB 1290, Section 33413(b)(4) requires the Compliance Plan to be adopted by the
Agency prior to December 31, 1994, as part of the implementation plan required by the
Law.
Health and Safety Code 33413(b)( 4) states that redevelopment agencies adopt for each
project area a plan for meeting low and moderate income housing production
requirements. This Compliance Plan sets forth the Agency's program for ensuring the
appropriate number of very low, low, and moderate income housing units to be
constructed within the city of San Bernardino's Redevelopment Project Area's (herein
referred to as the "Project Area") over the next ten (10) years. As such, tlus Compliance
Plan has been developed to accomplish the following goals:
*
To list and identify all redevelopment project areas and dates of adoption.
*
To list all residential units coustructed after the adoption of the specific
redevelopment project areas.
*
To list all residential units demolished after the adoption of the specific
redevelopment project areas.
*
To identify for each redevelopment project area all Agency assisted
residential housing projects that were either Bond financed, CDBG
financed, HOME financed, Rental Rehabilitation Program financed, and
Low and Moderate Housing Fund financed.
The Replacement, IncIusionary Housing Plan has three main components as follows:
A. ADOPTION:
On or before December 31,1994 and each year thereafter, each agency that has adopted a
redevelopment plan prior to December, shall adopt, after a public hearing, an
implementation plan that shall contain the specific goals and objectives of the agency for
the project area, the specific projects and expenditures proposed to be made during the
next five years, and an explanation of how the goals and objectives, projects, and
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expenditures will eliminate blight within the project area and implement the requirements
of Sections 33334.2, 33334.4, 33334.6 and 33413.
B. FREQUENCY OF ADOPTION:
The implementation plan shall include the number of housing units developed,
rehabilitated, price-restricted, otherwise assisted, or destroyed. TIle implementation plan
shall describe the agency's plans for using annual deposits in the Low and Moderate
Income Housing Fund, including making the funds available annually, transfer of the funds
to a housing authority or other public entity, or the accrual of funds for specific projects.
C. CONTENTS:
If the implementation plan contains projects that will result in the destruction or removal
of dwelling units, the implementation plan shall identify proposed locations suitable for
those replacement dwelling units.
Current Law: Housing Production - Health and Safety Code 33413 does not specify
when a plan must be adopted. Guidelines produced by the California Department of
Housing and Community Development (HLO), discussed in Section IV, suggest that
agencies should have adopted or have been at an advanced stage of producing a plan by
January 1, 1993.
SUMMARY OF REPLACEMENT, INCLUSIONARY HOUSING PLAN
Participating Agencies - Cooperation and Coordination. Recent legislation (AB 315,
Chapter 872 of 1991) requires redevelopment agencies to adopt and periodically update a
plan to ensure compliance in each project area, within five years, witll existing criteria in
Health and Safety Code Section 33413 regarding the affordability mix of new or
rehabilitated housing. While Housing Community Development (HCD) has no statutory
role to establish or enforce AB 315 plan requirements, it is believe that these views are
entitled to deference from redevelopment agencies.
The recently established Housing Division of the Development Department was given a
role in gathering required data for the development of the Replacement, Inclusionary
Housing Plan for 1994 that covers a period of five years. The process involved
coordination with and collection of data from the following State, Count, City
Departments, and Private Sector/Entities:
San Bernardino County Office of the Assessor
City of San Bernardino Planning and Building Services Department
City of San Bernardino Development Department Housing Division
City of San Bernardino Economic Development Agency
Continental Lawyers Title Company
Sabo and Green - Attorney at Law
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The City of San Bernardino elected to develop its Replacement, Inclusionary Housing
Plan for the 1994 five year plan. Through the Development Department Housing
Division, the consultant finn, Comprehensive Housing Services (CHS), Inc., coordinated
the collection, analysis and composition of data for the Comprehensive Housing
Affordability Strategy (CHAS) report. Furthermore, the Housing Division provided
guidance on the proposed strategies to be addressed as well as directed the consultant
regarding resources and programs to be used to implement the recommended strategies.
While at the same time providing analysis and composition of data for the Replacement,
Inclnsionary Housing Plan.
CHS conducted a series of public meetings which allowed for citizens and organizations to
provide input regarding housing conditions, housing stock, existing programs or new City-
sponsored programs, and possible strategies and projects which would address the City's
affordable housing and supportive service needs. Comments gathered at these meetings
provided valuable information for future program and project development. At the same
time, information compiled was used for the development of Replacement, Inclusionary
Housing Plan.
EXECUTIVE SUMMARY
Since 1976, redevelopment agencies have been required to assure that at least thirty
percent (30%) of all new or rehabilitated units developed by an agency are available at
affordable costs to households of low (51 %-80% of area median income) or moderate
(81 %-120% of area median income) income. Of this thirty percent (30%), fifty percent
(50%), that is , fifteen percent (15%) of the total project area units developed or
rehabilitated by the Agency, are required to be available at affordable costs to very low
(50% or below of area median income) households. Further, Section 33413 requires that
at least fifteen percent (15%) of all new or rehabilitated dwelling units developed within
each project area by entities other than an agency be made available at affordable costs to
low or moderate income households. Of this fifteen percent (15%), forty percent (40%)
of the dwelling units, that is six percent (6%) of the total units developed in the project
area, are required to be available at affordable costs to very low income households.
These requirements are applicable to housing units in the aggregate and not to each
individual case of rehabilitation, development, or construction of dwelling units.
The compliance plan is designed to meet the production requirements summarized above
for each project area. The compliance plan must include estimates of affordable units to
be developed and the compliance plan must be consistent with the jurisdiction's housing
element and must also be reviewed and, if necessary, amended at least every five (5) years
in conjunction with the cyclical preparation of the housing element. If at the end of each
ten (10) year period, the production estimate is not reached, the Law requires that the
Agency meet the production goals on an annual basis until the requirements for the ten
(10) year period are met. Should the Agency exceed the production requirements within
the ten (l0) year period, the Law pennits the Agency to count the units that exceed the
requirements to meet housing production requirements during the next ten (10) year
period.
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AB 1290 amendments will only be in effect until December 31,1996 illness the State
Legislature extends the effective date of the current provisions of Section 33413. If the
effective date is not extended, the requirements of Section 33413 as it existed prior to AB
1290 will become applicable again. Relevant portions of Section 33413 which may
terminate in 1997 include: Section 33413 (b)(2)(A)(ii) which provides that the Agency's
obligations under Section 33413 may be met by providing affordable housing outside the
project area on a two-for one basis; the defInitions of "substantially rehabilitated dwelling
units" and " substantial rehabilitation" contained in Section 33413 (b )(2)(B) which allows
the Agency to purchase long-term affordability covenants on existing multifamily units;
and Section 33413 (c)(2) which allows the sale of affordable owner occupied units at
market rate if replacement unit or units are provided within three (3) years of the sale. For
the purpose of this Compliance Plan, it is assumed that the current provisions enacted by
AB 1290 will remain in effect during the ten (10) year period of this Compliance Plan. If
the effective date of the existing version is not extended past December 31,1996, this
Compliance Plan will need to be reviewed to determine if revisions are required.
A. DEFINITIONS AND DATA COMPILATION
This Compliance Plan includes fIgures for existing residential construction and substantial
rehabilitation. The following sections defme "new construction" and "substantial
rehabilitation" as used in this Compliance Plan, as well as the methodology used for
collecting data on the existing residential housing.
1. NEW CONSTRUCTION:
Construction statistics were provided by City Planning staff because the Law
does not establish a clear defmition for new construction, Agency staff, consultant,
and legal counsel formed a "defInition" of what would be considered new
construction for the purposes of this Compliance Plan. Dwelling units with
building permits issued since the adoption date of the Project Area were
considered to be new construction; therefore, these units would fall under the
requirement for production of affordable housing within the Project Area.
Projections are affected by nwnerous complex factors as: the general health of the
local regional, and national economy; employment levels; competition; and
inventory of existing housing. Based upon the recent economic trends, a
projection of new units to be constructed over the next ten (10) years is difficult.
Projections for future dwelling units to be constructed within Project Area used in
this Compliance Plan are based upon existing land uses and recent historical trends
of building permits issued for residential units. City Planning staff does not
anticipate that the Project Area will experience build out within the ten (10) year
time frame (1994 thtough 2004) covered by this Compliance Plan.
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2.
SUBSTANTIAL REHABILITATION:
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The Law, as amended by AB 1290, defines "substantial rehabilitation" as:
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"...substantially rehabilitated multifamily rented dwelling
units with three or more units or substantially rehabilitated,
with agency assistance, single family dwelling units with one
or two units."
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As defmed by AB 1290 "substantially rehabilitated dwelling units" means;
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after rehabilitation value of the dwelling, inclusive of the land
value." There is a standard defmition of " rehabilitation." For the
purposes of Section 33413 (b), two special cases should be
considered:
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1. Rehabilitation that creates new housing units from previously
nonresidential structures can be considered "new units."
...
2. Rehabilitation that increases rents or costs and removes units from an
affordable category should not be counted for purposes of an AB 315
plan, since it triggers an obligation to provide replacement. The agency
should be tracking a replacement obligation for such units.
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Rehabilitation that maintains rents (not necessarily affordable rents )should be counted.
Aside from the special cases above, there are several workable, reasonable defmitions of
rehabilitation which an could use, together or separately. Housing Conununity
Development California Housing Rehabilitation Program--Rental (CHRP-R) defmes
rehabilitation as repairs and improvements to substandard housing (substandard being
defined as violating at least one provision of State Housing Law standards) necessary to
return it to standard condition.
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For another example, Health and Safety Code Section 50097 allows "rehabilitation" to
include, for purposes of certain programs, room additions to prevent overcrowding of
low-income or moderate-income households, and changes in grade continued operation of
affordable housing (in this particular case mobilehome parks in flood conditions).
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Section 33413 (b) (10 says, in part, "At least 30 percent of all new or rehabilitated
dwelling units developed by an agency shall be available at affordable housing cost to
persons and families of low or moderate income. Not less than 50 percent of the [30
percent] shall be available at affordable housing cost to, and occupied by, very low income
households (emphasis added)."
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Section 33413 (b) (2) says, in part, " At least 15 percent of all new or rehabilitated
dwelling units developed by an agency shall be available at affordable housing cost to
persons and families of low or moderate income. Not less than 40 percent the [15
percent] shall be available at affordable housing cost to very low income households
(emphasis added)."
The following statutory definitions of the underlined terms apply. They are tied to
redevelopment law by references in Section 33334.2.
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"Affordable housing cost" is dermed in Health and Safety Code Section 50052.5. This
section also includes by reference, standards for" affordable rent" which is dermed in
Section 50053.
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"Persons and families oflow or moderate income" is dermed in Health and Safety Code
Section 50093. In practice this category is dermed by the income limits published in
regulation Section 6932.
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"Very low income households" is dermed in Health and Safety Code Section 50105. In
practice this category is defined by the income limits in Section 6932.
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The components of rent and housing cost (i.e., utilities, taxes, etc.) are dermed in the
California Code of Regulations, Title 25, Division I, Chapter 6.5, Sections 6918 and
6920, respectively.
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Section 33413 (b) (1) differs from (b) (2) in requiring that the units required to be
"available at affordable cost to very low in come households" must also be "occupied by"
very low income households" must also be "occupied by" very low income households.
The former phrase means that the occupants must qualify on the basis of income when
they move in, but may gain in income without affecting the compliance status of their
occupancy. The latter phrase means that if a household that had a very low income when
it moved in increases its income until it no longer qualifIes, then tlle occupancy no longer
meets the standards of Section 33413 (b) (1).
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Housing element law requires the element, among other things, to "set forth a five-year
schedule of actions the local government is undertaking or intends to undertake to
implement the policies and achieve tIre goals and objectives of the housing element
through... the utilization of monies in a [redevelopment agency's] Low and Moderate
Income Housing Fund" (Government Code Section 65583 (c)). This language invites the
integration of AB 315 goals and actions into the housing element's overall objectives and
program sections as described in Section 65583 (c).
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There also are direct statutory links between redevelopment and housing elements which
AB 315 plans should take into account:
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The local housing element is required to analyze the situations of" existing assisted
housing developments that are eligible to change from low-income housing uses during the
next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration
of restrictions on use" (Govemment Code Section 65583 (a) (8) ).
The element is also required to "consider the use of all... subsidy programs which can be
used to preserve, for lower income households, the assisted housing developments,
identified in this paragraph, including, but not limited to... tax increment funds received by
a redevelopment agency" , and to include program actions to "Preserve for lower income
households the assisted housing developments identified pursuant to paragraph (8) of
subdivision (a) [quoted above]."
Redevelopment law supports this use of set-aside funds by declaring the preservation of
the affordability of existing assisted housing to be an eligible redevelopment activity.
4.
PROVISION OF AFFORDABLE HOUSING TO DATE
For all redevelopment projects adopted after January I, 1976, Health and Safety Code
Section 33413 requires that affordable housing be provided in conjunction with: (a) the
destruction or removal of existing affordable dwelling units within a project area by direct
or indirect involvement of a redevelopment agency; and (b) development of new or
substantially rehabilitated dwelling units within a project area.
5.
ANALYSIS AND SUMMARY OF DATA
The following data was compiled to determine the number of demolished or new units
built within redevelopment project areas. Each project areas date of adoption was needed
to determine what sort of development had occurred since the time of adoption. At the
same time it would provide information as to whether there had been more demolished
units in a project area. It was the goal of the Replacement, Inclusionary Housing Plan to
identify residential units that may have been demolished, and if so, were they replaced
with new units or commercial units.
Upon completion of the processing of the following information, it became apparent that
within each project area there had been more new construction of residential property than
the demolition of residential property.
The following procedures were used to obtain information, in regards to the Nine (9)
Redevelopment Project Areas which includes the Inland Valley Development Agency
(IVDA) project area. Upon receiving the following fIles as stated below, staff proceeded
to survey those Redevelopment Project Areas, for demolished or new construction of
residential property that have occurred within these project areas adoption dates. With
completion of field survey, staff proceeded, to analyze each of the high density ftles of all
parcels with each development area. Staff then, proceeded to write down if there was a
demolished or a new residential construction project that had taken place.
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The following three sections (A,B, and C) identify the number of dwelling units which
have been destroyed/removed, constructed, or substantially rehabilitated within the Project
Area to date.
PROJECT AREAS
CENTRAL CITY EAST
CENTRAL CITY WEST
TRICITY
SOUTH VALLE
SOUTHEAST INDUSTRIAL
MT. VERNON
UPTOWN
NORTHWEST
CENTERAL CITY SOUTH
IVDA
ADOPTION
YEAR
DEMOLISHED
NEW
1977
1976
1982
1984
1976
1983
1986
1990
1976
47 192
2 6
0 36S
0 68
0 0
1 80
3 16
2 100
0 10
0 264
SS 1101
1990
TOTALS:
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A. TABLE 1: DEMOLISHED UNITS OF SAN BERNARDINO
TOTAL UNITS DEMOLISHED 55
C.C. SOUTH
IVDA
NORHlWEST -
UPTOWN
MT.VERNON
SOUTHEAST INDUSTRIAL -
SOUTH VALLE
C.CITY EAST
C.CITYWEST
TRI CITY
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20
40
50
10
30
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B. TABLE 2: NEW UNITS OF SAN BERNARDINO
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C.C. SOUTH
IVDA
NORTHWEST
UPTOWN
MT.VERNON
SOUTHEAST INDUSTRAIL
SOUTH VALLE
C.CITY EAST
C.CITYWEST
TRI CITY
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TOTAL UNITS NEW
CONSTRUCTED 1101
o 50 100 150 200 250 300 350 400
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The following information as provided was compiled by reviewing files which were fmanced by
the following; Community Development Block Grant (CDBG) fmanced, Bond fmanced, Home
fmanced, Rental Rehabilitation Program fmanced and 20% Low/Moderate Housing Fund
fmanced. Staff proceeded to research high density flles to determine dates when loans were
issued, then totalled all categories.
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PROJECT OUTSIDE
PROJECT AREA PROJECT-AREA TOTAL
BOND ISSUED 0 1896 1896
RRP FINANCED 0 228 228
MAP 0 87 87
NEW HOME FINANCED 0 128 128
SENIOR HOUSING 0 146 146
20% SET-ASIDE 24 24 48
CDBG ~ 2lll ~
UNITS FINANCED 89 2710 2799
C. TABLE 3: ASSISTED UNITS
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TOTAL CONSTRUCTED
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ASSISTED UNITS 2,799
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BOND ISSUED
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1000
1500
2000
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HCD GUIDELINES ON PROJECT AREA HOUSING PRODUCTION PLANS
The Division of Housing Policy Development of the California Department of Housing
and Community Development (HCD) has received a number of inquiries regarding the
project area affordable housing production requirements. In order to provide guidance on
these issues, HCD issued an advisory memorandum containing HCD's question and
answer interpretations of several aspects of the housing production requirements.
Key elements of the Inclusionary Housing Compliance Plan for the City of San
Bernardino include;
*
An analysis of the Agency's obligation, to date, to provide affordable housing
within the Nine (9) Redevelopment Project Areas. The percentage of housing
units which must be restricted to affordable standards has been detennined through
a review of past entitlement approvals for new construction, and by researching
actual issuance of building permits in project areas.
*
A description of the programs/projects which will provide the percentage of
affordable units necessary to meet the Agency's legal obligation over the next ten
years.
*
An indication of potential future residential development by public or private
entities within the project areas. The potential for future residential development
will be detennined by a review of the various zoning designations, including
General Plan, Specific Plan, and Redevelopment Plan overlays, within the project
areas.
7.
PROGRAMS FOR COMPLIANCE
The requirements which restrict a percentage of units developed in the project areas to
affordable standards, apply in the aggregate, and not to each individual case of
rehabilitation or construction of units. Therefore, the Agency is not required to place
affordability covenants on each of the residential projects proposed for the Nine (9)
Redevelopment Project Areas, but may satisfy the Inclusionary obligation by producing a
number of affordable units that is equal to 15% of the total developed or rehabilitated
within the applicable project area. The requirements also state that restrictive covenants
will remain in place for the longest feasible time, but for not less than the period of the
land use controls established in the applicable redevelopment plan. The resulting
restriction of units to the relevant standards of affordability will therefore remain in place.
Due to the long term restrictions associated with inclusionary housing requirements,
maintaining affordability standards on new for sale units, it is difficult to package, sell and
implement. The appreciation in value that the new owner might expect from the
investment is potentially depressed by the long term affordability covenants. Housing
programs associated with new construction, including the reduction of land value in order
to reduce the unit sale price, or the provision of low interest loans, or shared equity
("silent second" mortgage) programs are geared toward the fIrst time home buyer, but
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difficult to package for long term affordability. Therefore programs designed for first time
home buyers initiat" the availability of affordable housing but don't necessarily maintain
the affordability of the unit over time. The flfSt time home buyer programs as an example
provides an important benefit to the community by encouraging home ownership.
A MULTI-FAMILY UNIT DEBT SERVICE WRITE-DOWN PROGRAM.
A Debt Service write-Down Program may be applied to existing housing stock, within the
project areas to create affordable units. Under this program, a lump sum write-down of an
existing interest -bearing note will be offered by the Agency to reduce debt service on an
existing multi-family apartment complex. In return, the property owner will execute with
the City I Agency a recorded covenant requiring the continuance of affordable rental rates
for a specified number of units for the life of the redevelopment plan.
The percentage of units restricted to affordable rents will be based on the level of Agency
assistance. Concurrently, a low interest loan might be offered to the property owner for
the improvement of the property as necessary to conform to City codes. Rehabilitation of
the property would, therefore, benefit the tenants, the surrounding neighborhood and the
individual owner. Property maintenance covenants should also be applied to the Agency-
assisted apartment complexes. The Multi-Family Rehabilitation program requires an
allocation of $7,500,000 of Home Program Funds over five years.
8.
OTHER CITY/HOUSING CONDITIONS
The City of San Bernardino is a diverse, growing community with a long history dating
back to the middle 1800's. San Bernardino developed like most cities, that is, around its
basic commercial core. As times changed and sub-urbanization occurred, especially after
Wodd Warn, housing was developed farther from the original downtown core in outlying
areas. As this occurred, the existing central city residential and commercial core has
suffered from lack of investment and maintenance which has resulted in deterioration and
decay and less economic viability.
Currently, there are four identified housing "needs" in San Bernardino. These needs
include affordability/cost, physical inadequacies (condition), home ownership and
homelessness.
(1)
AFFORDABILITY/COST
Almost 37% of the City's household are paying in excess of 30% of their incomes on
housing costs. This burden is most severe among the very low income renter households.
Over 85% of those earning under 30% of the median income level are paying in excess of
30% of their incomes toward housing. Over 70% of this group pays in excess of 50% of
their incomes for housing. Owners within the same income group also face a tremendous
cost burden. Over 63% of these owner households pay more than 30% of their incomes
to housing. As expected, this lower income segment of the population also have a high
risk of becoming homeless should some disrnption in income or employment occur.
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(2) PHYSICAL INADEQUACIES/CONDITION
Physical condition of the housing stock is the second significant issue that has been
identified in the Central City cornmunity. According to the City's housing element of the
City's general plan, II % of the City's housing stock is substandard in condition, with 3%
of the units being so bad, that they are no longer fit for human habitation. Many of these
units are located within the older central city community.
(3) HOMEOWNERSHIP
The costs of housing has also prevented many fami1ies from affording their own home.
Fifty-two percent 52% of the City's housing units are owner occupied with the remaining
48% being rental. The high rate of absentee owners contributes to a general lack of
maintenance of the housing stock. On the other hand, home ownership contributes to a
high level of stability, connnitment, "pride" and ongoing maintenance which translates into
substantial upgrading of the existing housing stock. Therefore, one major priority will be
to increase the level of home ownership.
(4) HOMELESS
In a recent survey by the San Bernardino Homeless Coalition in November 1992, 1121
homeless person were identified in San Bernardino. Due to the prolonged recession and
unemployment in California, these numbers may have increased. More recent estimates
identify approximately 3,000 homeless persons in San Bernardino on any given day.
Based upon a recent study, "The War on Homelessness: Are we winning?" Close to one-
half of the homeless person were children. The major caused for homelessness were:
evictions, domestic violence, job loss, loss of governmental benefits, substance abuse, and
mental illness.
ADDmONAL CITY HOUSING PROGRAMS
A. RENTIDEPOSIT GUARANTEE PROGRAM:
This is a homeless prevention program operated by provider agencies. Under the
Program, non-Aid For Development Children (AFDC) recipients, meeting other Program
requirements are provided with one time only grants to assist with rent and deposit
payments. The following program will require an allocation of $1,000,000 for five years
to assist very low income fami1ies.
B. TRANSmONAL HOUSING PROGRAM:
This program, as currently operated, involves the acquisition and rehabilitation of standard
apartment units for occupancy by recently homeless families. As a condition of residency,
a faruily agrees to participant in support services tailored to their needs. After a stay
prescribed by their needs, a faruily is transitioned into an independent living status and
permanent housing.
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One project that is awaiting approval under this concept is a Department of Housing
Urban Development (HUD) grant application filed jointly by EDA and the County
Department of Mental Health in August 1994. Once approved, the project would consist
of the acquisition and rehabilitation of eight rental units that would house up to 16
mentally ill formerly homeless single adults and provide case management services. EDA's
participation will require a match of the $500,000 grant over a period of three years.
C.
HOMELESS SHELTER UTILITY PAYMENTS PROGRAM:
This program pays the utility bill of a facility providing homeless shelter services. The
Homeless Shelter Utility Payments Program (HSUPP) assists non-profit emergency
shelters with the payment of utilities. Eligible utilities include water, gas, electric and trash
collection fees. This program has been in effect since 1992. Each year since its creation,
the program has received approximately $20,000 per annum. A total of five homeless
shelters have been assisted within the City with two of the shelters receiving funding
during the 1995-96 Fiscal Year.
D.
HOMELESS SAFE HAVEN PROJECT
This is a project that involves the Salvation Army, County Department of Mental Health
and the EDA. An application for a grant will be submitted in 1995 to HUD and if
successful, will provide funding for the acquisition and rehabilitation of a facility suitable
as a drop in center for the homeless mentally ill. Case management and other support
services would be a major component of the services provided at the site. A grant match,
the exact amount is not known at this time, would be required. Programs C and D
together will require an allocation of $1,000,000 for a period of five years.
ENTERPRISE COMMUNITY PROJECT
[The Empowerment ZonesfEntetprise Communities program is a new program introduced
by the Clinton Administration and funded by HUD]. The area consists of the following
census tracts: 38,42,47,48,49,50, 55, 56, 58, and 59. An area of approximately 10.3
square miles, with a population of 60,572. Data taken from the 1990 census. The
population density within the project area is 5,876 persons per square mile, compared to
city wide of 2,982 persons per square mile. This shows the project area to have a density
which is twice as high as city wide. The project area has a total of 17,823 households;
33.1 % of the populous or 36% of the families within the project area are below the
poverty level compared to city wide respectively, 22.8% and 27%, showing the project
area has a high concentration of poverty stricken households.
These figures demonstrate the "need" for pro-active marketing and implementation of a
variety of affordable housing, housing assistance, job training and related neighborhood
assistance programs. The goal of this effort is to elevate households within the project
area out of poverty, provide safe, decent and sanitary housing, provide homeownership
opportunities and eliminate slums and blight. Neighborhoods that require a high degree of
program to reduce and eliminate slums and blight and demonstrate a profound level of
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"need" are considered "Focus" Neighborhoods. Focus Neighborhoods will be established
within the overall project area. These Neighborhoods will be informed (marketing)
regarding the diverse, resources of programs available to the Focus Neighborhood,
families and households.
CENTRAL CITY REVITALIZATION STRATEGY
The City's Housing Committee recommended approval to the Community Development
Commission of the two (2) Central City "Focus Neighborhoods as part of the Central City
Revitalization Strategy. This strategy represents an attempt by the Agency to
comprehensively address the social and physical "needs" of this community and to
effectuate permanent improvement in the "quality of life" within the area. The ultimate
goal of this approach is to change the economics of the Central City "Focus"
Neighborhoods to such an extent that it will be maintained at a desirable level (consistent
with community standards) without the need for more than normal City investment of
resources.
The proposed Implementation Strategy components utilize approximately $2,330,000 in
FY 1994-95 housing budget monies. This budget appropriation, however, includes
significant program income monies anticipated from repayment of completed Agency
housing projects.
Almost 37% of City's households are paying in excess of 30% of their annual incomes on
housing costs. Over 85% of those earning under 30% of the area median income level
within this "focus" neighborhood are paying in excess of 30% of their income towards
housing. This burden is most severe among very low income renter households in the area
who are paying in excess of 50% of their incomes for housing. Homeowners within the
same income group also face a tremendous cost burden. Over 63% of these homeowners
pay more than 30% of their income towards housing. This burden is most severe among
very low income renter households in the area who are paying in excess of 50% of their
incomes for housing. Homeowners within the same income group also face a tremendous
cost burden. Over 63% of these homeowners pay more than 30% of their income towards
mortgage payments. As expected, this lower income segment of the population have a
high risk of becoming homeless should some unexpected disruption in income or
employment occur.
The Central City strategy area includes the following census tracts: 55,56,57,and 58. An
area of approximately 3.75 square miles, with a population of 18,757 or 11 % of the city's
population. The population density within the project area is 5,002 persons per square
mile, compared to city wide of 2,982 persons per square mile. This shows the project area
to have a density which is twice as high as city wide. The project area has a total of 7,309
households or 85% of the populous of families within the project area who are below the
poverty level as compared to city wide statistics, which reflects the project area to having
a high concentration of poverty stricken households.
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Costs of housing have also prevented many families from acquiring their own home. The
overall housing breakdown within this "focus" neighborhood consist of 5,4427 or 21 %
rental occupied housing units and 1,071 or .04% owner occupied housing units with the
remaining balance of 811 housing units in the area being unoccupied or uninhabitable.
The high rate of absentee owners contributes to a general lack of maintenance of the
housing stock. On the other hand, home ownership contributes to a high level of stability,
commitment, "pride" of ownership and ongoing maintenance which translates to
substantial upgrading of the existing housing stock.
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Physical condition of the housing stock is a significant issue within the Central City
"strategy area". According to the City's Housing Element of the City's General Plan, 11 %
of the City's Housing stock is in substandard condition, with 3% of the units being so bad,
that they are no longer fit for human habitation. Many of these units are located within
this older central city conunonity.
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A.
PROGRAMS AVAILABLE WITIllN THE CENTRAL CITY
REVITALIZATION STRATEGY AREA
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The Economic Development Agency (EDA) will under take various revitalization projects
in partnership with non-profit organizatious, participating Housing Rehabilitation
Contractors, material suppliers, and other small businesses coupled with programs and
services provided by the Department of Social Services, support service groups, City and
County School Districts and the San Bernardino Employment Training. Agency staff is
coordinating their efforts within the Central City "strategy area" in establishing a job
training program as a remedy to address unemployment for very low income persons
residing in the area.
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These figures demonstrate the "need" for a pro-active marketing and implementation of a
variety of housing assistance, job training and related neighborhood assistance programs
and services. The goal of this effort is to elevate households within the Central City
strategy area out of poverty, provide safe, decent and sanitary housing, provide
homeownership opportunities, and eliminate slum and blight.
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The major components of the Central City "strategy area" includes, but is not limited to
the following:
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Assist existing property owners with rehabilitation/improvement of their
properties.
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Implement a pro-active graffiti removal and neighborhood clean-up campaign.
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Utilization of the Neighborhood Preservation Team (NPT) to coordinate available
city programs and activities.
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Implementation of the InfIll-Housing Program for an on going development of an
twenty-four (24) single family detached homes per year in the area.
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*
Implementation of a Residential "Facade" Improvement Program within major
corridor streets in the area.
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* Implement the Mortgage Assistance Program (MAP) for First-time homebuyers.
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Implement Special Needs Housing Program for prevention and elimination of
homelessness in our community.
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Effectuate" Job Creation" opportunities for very low, low income families, and
the least likely to be employed.
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The single most critical component of the revitalization strategy is the implementation of
the neighborhood rehabilitation and improvement program coupled with the utilization of
the City Neighborhood Preservation Team (NPT) fmancial resources to maximize
permanent changes in the area. It is essential that resources from other City Departments
be used to effectuate and establish a standard which meets the "needs" of this community.
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12. MAPS
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A. MAP 1: ENTERPRISE COMMUNITY BOUNDARY
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B. MAP 2: FOCUS NEIGHBORHOOD
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C.MAP3: FOCUS NEIGHBORHOOD
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ENTERPRISE COMMUNITY
BOUNDARY
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Proposed ~mpowerment Zonel
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San Bernardino city limit
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PRIORITIES:
Based upon these identified needs, the City of San Bernardino has established six priorities
for the Redevelopment Project areas. These priorities are:
PRIORITY # 1:
Preservation and rehabilitation of the "Mfordable" Housing Stock,
emphasizing Single Family Units.
PRIORITY # 2:
Assisting Low Income First Time Buyers with the purchase of
"Mfordable" pennanent housing.
PRIORITY # 3:
Expansion of Affordable Housing Opportunities for low income
large families primarily through new construction,lInf"Ill Housing.
PRIORITY # 4:
Providing rental assistance to the very low income households.
PRIORITY # 5:
Assist Homeless and Special Needs persons with support
services/programs.
PRIORITY # 6:
Job creation for very low, low income families, and the least likely
to be employed.
SOLUTIONSIPROGRAMS
PRIORITY # 1:
Preservation and Rehabilitation of the Mfordable Housing Stock,
especially Single Family Residences (SFR's)
The City of San Bernardino Economic Development Agency (BDA) will play an integral
role in preserving and rehabilitating the housing stock within the City, and especially
within the target area. Through the creative use of Redevelopment set-aside and CDBG
funding, the BDA will implement an aggressive and focused "neighborhood" and
rehabilitation program within the strategy area. During the f"'Irst year, BDA has established
a goal of rehabilitating 84 owner occupied SFR's and 96 multi-family rental units within
the next 5 years. Over $15.5 million dollars has to be earmarked for single and multi-
family rehab programs. During the next five years 50 single family units will be
rehabilitation and ~ multi-family units will be rehabilitation on an annual basis. At a
minimum 7.5 units single family will be made available to very low income family's and 9.6
multi-family units will be made available to low income family's. These rehab programs
will serve to eliminate slums and blight, improve the condition of the existing housing
stock and expand the nwnber of units available for" affordable" housing in the City. In
each case the rehabilitation programs will serve to upgrade the housing stock and
eliminate slwns and blight within the target area(s).
By using creative fmancing, 10% annually of the multi-family units funded in the strategy
area will be targeted for families at 30% and below median income families utilizing the
low and moderate Housing Fund (33334.2).
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Also, as a component of the rehabilitation strategy in the strategy area, the EDA in
partnership with a non-profit, will provide a transitional permanent housing, using 20%
set-aside funds ($720,000.00) which consist of Sixteen (16) units scattered, or four-plexes
will be purchased and rehabilitated for the pwpose of providing housing to the homeless,
very low income, people at risk, and special need groups.
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Programs available for funding in "Redevelopment Project Areas" include:
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EXTERIOR IMPROVEMENT LOAN-PLUS PROGRAM:
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For properties requiring minor repairs. For any exterior property improvements such as
roofing, driveways, fencing, landscaping and painting. To address property requiring a
substantial amount of rehabilitation, this program is designed to provide both exterior
improvements and minor interior improvements to homes by providing qualified property
owners with low interest loans, using either COBG or the low and moderate housing fund.
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HI .IGlBIUTY - any property owner who occupies or has rental property located within a
selected focus neighborhood that is in need of exterior and minor interior improvements
and who meet the program income requirements is eligible. This program is also available
on a citywide basis to owner-occupied properties only.
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HI .IGlBLE IMPROVEMENTS- any exterior and limited interior property improvement is
eligible including, but not limited to roofmg, driveways, fencing, landscaping, color coat,
painting, windows, plwnbing and carpeting. Exterior improvements must encompass at
least seventy percent (70%) of the rehabilitation total to qualify for this program.
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B. DEFERRED LOAN PROGRAM:
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To address the low and very low income households needs, the following program is
designed to provide property improvement assistance to fmancially impacted households
to eligible owner-occupied and rental properties owners for selected focus and citywide
areas, using either CDBG or the low and moderate housing fund.
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HI IGlBTT.ITY - any property owner who occupies or has rental property located within a
selected focus and citywide neighborhoods that is in need of exterior and interior
improvements and who meets the program income requirements is eligible. In addition,
the property owner must demonstrate extreme economic hardship which would prevent
their participation in the various amortized property improvement loan programs.
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HLIGiBLE IMPROVEMENTS- any exterior and interior property improvement is
eligible, excluding "luxury" items (Le., pools, spas, etc.),or any items which could be easily
removed from the property (Le., drapes, rugs, etc.).
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C. EXTERIOR PAINT PROGRAM:
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A painting program without cost for owner occupied units who meet program income
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requirements is available. A similar program is available for non-owner occupied
properties within the Focus Neighborhood, whereby one half of the cost of painting will be
provided through either CDBO or the low and moderate housing fund.
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The EDA will work in partnership with code enforcement, community groups, private
sector contractors, non-profits and other organizations to implement tills program.
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This program is design to improve the exterior appearance of houses located in selected
Focus Neighborhoods by providing significant fmandal incentives for property owners to
paint and color coat the exterior of their homes.
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FINANCIAL INCENTIVES- For owner-occupants the Agency would accommodate the
cost to the eligible homeowner at 100% of cost. For owner-investor properties the
Agency would contribute 50% of the cost and the owner-investors will contribute the
remaining 50% of the cost.
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HI .TOmn .ITY - Any property owner who lives in or rents property located within one of
the City's selected Focus Neighborhoods whose property is determined to be in need of
those exterior improvements and who meets the program income requirements is eligible.
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PRIORITY # 2:
Assisting Low Income First Time Buyers with the purchase of
"Mfordable" permanent housing.
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D. EXTERIOR IMPROVEMENT LOAN PROGRAM:
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This Exterior Improvement Loan Program is a citywide program specifically designed to
improve the exterior appearance of a home by providing qualified owner-occupants only
with interest free loans. This program is also available in the selected focus neighborhood
to both owner-occupied and rental property owners who meet the program income
requirements, using either CDBO or the low and moderate housing fund.
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PT Tomn .ITY - In order to provide this assistance to selected Focus neighborhood, the
owners will be required to signed a hold harm1essJ1iabilities waiver for non-inspection on
the interior ofthe property. Under citywide properties the property must be free from
any health or safety violation to be eligible.
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ELIomLE IMPROVEMENTS- any exterior property improvement is eligible including,
but not limited to roofmg, driveways, fencing, landscaping, color coat and painting.
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E.
HOME IMPROVEMENT LOAN PROGRAM:
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The Home Improvement Loan Program is designed to provide significant property
improvements to eligible owner-occupied and rental properties owners for selected focus
and citywide areas, using either CDBO or the low and moderate housing fund.
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()
HI .TGmn .ITY - Any property owner who occupies or has rental property located within a
selected Focus and citywide neighborhoods that is in need of exterior and interior
improvements and who meet the program income requirements is eligible.
TERM- this is a low interest loan, up to a maximum of $40,000 exclusive of fees (fees
may be added to maximum loan amount) amortized for a twenty (20)year period.
ELIGmLE IMPROVEMENTS- any exterior and interior property improvement is
eligible, excluding "luxury" items (i.e., pools, spas, etc.), or any items which could be
easily removed from the property (Le., drapes, rugs, etc.).
R GRANT PROGRAM:
The Grant Program is designed to provide critical, code item corrections or handicap
accessibility property improvements. In addition, there must be a demonstrated critical
need, necessitating the immediate correction of these items, using either CDBG or low and
moderate housing fund.
HI .TOmIUTY - Income for this program is limited to a maximum of fifty percent (50%)
median for family size. In addition, program eligibility is strictly to senior citizens age 62
years or older. Grants may be utilized to accommodate unforeseen circumstances, upon
approval, that may preclude the rehabilitation from being completed.
Items A through F are part of the Property Improvement Program which will require an
$8,000,000 allocation for five years.
G. MORTGAGE ASSISTANCE PROGRAM:
Currently, the Economic Development Agency provides a Mortgage Assistance Program
(MAP) which makes a limited number of deferred payment second mortgages (principal
and interest), in amounts up to 10% of the purchase price. This program is designed to
assist first time home buyers with the down payment/closing costs necessary to purchase a
home, using low and moderate housing fund.
The Mortgage Assistance Program is a deferred payment equity participation loan secured
by a second deed of trust. There are no monthly payments (principal and interest) and the
loan is due and payable only when the property is sold, refmanced, or a change in title
occurs. At time of sale the City will receive an equity share of the property in an amount
equal to the City's original down payment assistance. This program will require an
allocation from the low and moderate housing funds of $2,500,000 for five years.
FIRST TIME HOME BUYER REVOLVING LOAN FUND:
Under the Enterprise Zone, an expanded program ($100,000 revolving loan fund) will be
funded. This program will initially be funded from the new HUD empowemlent zone.
The EDA's goal is to expand the number of MAP loans from eighty-five (85) to one
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hundred (100). The additional fifteen (15) units will be targeted within the strategy area.
As these deferred loans are paid/retired, the initial investment will be returned to the
revolving loan fund to create more homeownersship opportunities for residents.
The EDA will also work in partnership with non-profit and for-profit agencies and
organizations to assist very low and moderate income families using CDBG and low and
moderate housing fund.
PRIORITY # 3:
Expansion of Mfordable Housing Opportunities for low income
large families primarily through new construction/lnfill Housing.
The EDA has several programs which assist and encourage private contractors to invest
and develop housing projects in San Bernardino to comply with the 15% and 30%
requirements through Agency assisted housing projects.
These programs include:
* Infrastructure Improvement Financing
* Pre-Development Processing Assistance
* Vacant Land Surveys
* Site Selection Assistance
* Financial Assistance
* Loan Packaging Assistance
* CRA Incentive Program
* Pre-payment of Building Fees
The EDA will work in partnership with community groups, private sector contractors, non
profits and other organizations to implement this program. The EDA will also work with
those agencies or companies that agree to hire workers referred by the Department of
Social Services to the San Bernardino Employment Training Agency (SBETA).
INFILL HOUSING DEVELOPMENT PROGRAM
A major priority of the FY 1994-95 Housing Division budget is the implementation of a
Comprehensive Revitalization Strategy within the Central City area. One component of
that strategy addressed the need for high quality single-family infill development within
that area. The recently completed vacant land survey has identified developed single-
family lots within portions of the Northwest Redevelopment Project and the Central City
target areas generally bounded by Highland, Rialto, California and Waterman.
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An intent of the Infill Housing Development Program is to construct high quality single-
family homes on a scattered lot basis, thereby setting the quality standard for future
development within the above mentioned neighborhoods. Hopefully, this standard will
help promote existing individual property improvement at a higher quality level. This
program will required an allocation of $2,000,000 from the low and moderate housing
fund over the next five years.
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This assistance is for the following reasons:
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Lack of available acquisition fmancing
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Additional cost of on-site security during construction
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Higher building cost associated with individual rather than tract development
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PRIORITY # 4:
Providing rental assistance to the very low income households.
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The EDA will target up to 18 faruilies/households per year to receive housing assistance.
Priority will be given to those households in transition housing or participating in Job
training/re-training programs using CDBG funds.
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RENT/DEPOSIT GUARANTEE PROGRAM:
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This is a homeless prevention program operated by provider agencies. Under the
Program, non-AFDC recipients, meeting other Program requirements are provided with
one time only grants to assist with rent and deposit payments. The following program will
need an allocation of $1,000,000 for the next five years to assist very low income
families.
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MOBILEHOME RENTAL ASSISTANCE
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The Mobilehome Space Rental subsidy program was established by the city to assist very
low income families. Under this program the maximum income that an individual may
make is $1,000 and for dual incomes $1,250 per month. This program is directed
primarily toward senior citizens on fIXed incomes who own their own Mobilehomes. At
this point the program has been funded $200,000 and needs to receive an additional
$25,000 per year from the low and moderate housing fund.
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MAP 4: INFlLL HOUSING BOUNDARY
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INFILL HOUSING BOUNDARY
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PRIORfI'Y # 5: Assist Homeless and Special Needs persons.
The San Bernardino County Mental Health Department has committed approximately
$640,000 per year in family case management. These fund will cover an approximate case
load of 85 persons per year using CDBG funds.
The City has established a goal of rehabilitating 180 single family or multi-family units per
year for the duration of the Enterprise Community. Of the 180 units rehabilitated on an
annual basis, 10 percent will be designated for very low-income persons who participate in
a transitional housing program provided by either the County of San Bernardino
Department of Mental Health (special needs population) or another case management
program operated by a local non-profit organization for non-special needs populations,
including families.
HOMELESS SHELTER UTILITY PAYMENTS PROGRAM:
This program pays the utility bill of a facility providing homeless shelter services.
Homeless programs need to receive $1,000,000 over a five year period.
HOMELESS SAFE HAVEN PROJECT
This is a project that involves the Salvation Army, County Department of Mental Health
and the EDA. An application for a grant will be submitted in 1995 to HUD and if
successful, will provide funding for the acquisition and rehabilitation of a facility suitable
as a drop in center for the homeless mentally ill.
PRIORfI'Y # 6:
Job Creation for very low, low income families, and the least likely
to be employed.
The City of San Bernardino Economic Development Agency (EDA) in partnership with
non-profit organization, participating Housing Rehabilitation Contractors, material
suppliers, other small businesses, Department of Social Services, support services groups
or agencies, City and County Schools, San Bernardino Employment Training Agency, and
other interested agency, will combine efforts and establish job training programs and on
the job training for very low income families and the least likely to be employed. CDBG
funds are earmarked for the life of this program.
HOUSING NEEDS FOR THE NEXT FIVE YEARS
The City of San Bernardino expects that housing needs for the next five years will grow.
While the City cannot predict which groups will have the greatest need, it has forecast
population and housing projections in five year increments from 1990 through 2020. For
purposes of this five year plan, which encompasses 1994 through 1998, Comprehensive
Housing Services staff detennined one year average projection rates for the five year time
frame from 1990-1995 and 1995-2000 in order to detennine the projected population
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increase and housing unit increase through 1998. The annual projected increases are
shown in the table below.
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5,644
5,644
HOUSING UNIT INCREMENT
672
672
1,644
1,644
1,644
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YEARS
1994
1995
1996
1997
1998
FIVE YEAR
PROJECTION
POPULATION INCREMENT
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7,065
7,065
7,065
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32,483
6,276
Source: Ci of San Bernardino. Anal sis b Com hensive Housin Services Inc.
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The City of San Bernardino is projected to have a population increase of 32,483 and a
housing unit increase of 6,276 in the next five years. Initially, the population increase is
projected to be partially absorbed in units that are currently vacant. However, by 1996
most of the vacant units will be occupied and the increase in housing units is projected at a
slower rate than the increase in population. This would result in an increase in the average
household size. It is also anticipated that there will be some increase in overcrowding.
These factors indicate that there will be a need for larger housing units. It is also expected
that the need for rental assistance could increase, since lower vacancy rates could cause an
increase in market rents.
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16.
LOW AND MODERATE HOUSING FUND
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The 20% set aside funds for low and moderate income housing for the current year, has
recieved funding in the amount of $3,000,000. To date this funding source has no avaib1e
funds, yet is scheduled to receive $3,000,000 a year with a 2% inflater added. Over the
next five years this program should receive approximately $15,000,000. While the Iuland
Valley Development Agency 20% set aside low and moderate income, fund generates
$1,000,000 annually or $5,000,000 over the next five years.
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17.
INLAND V ALLEY DEVELOPMENT AGENCY(IVDA)
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The Inland Valley Development Agency (IVDA) is a Joint Powers Authority formed
pursuant to the provisions of Article 1 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California, and is comprised of four local goverrunental
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entities: the County of San Bernardino and the Cities of San Bernardino, Colton and
Lorna Linda. The IVDA was initially formed pursuant to a Joint Powers Agreement dated
January 24,1990, which was subsequently amended on February 12, 1990. The lVDA,
although it is a Joint Powers Authority, has the ability to exercise redevelopment powers
pursuant to seciallegislation which became part of the Califomia Redevelopment Law.
Specifically, Health and Safety Code Section 33320.5, which became effective January 1,
1990, provides that the IVDA shall have and exclusively exercise powers of a
redevelopment agency pursuant to the California Community Redevelopment Law in
connection with the redevelopment of a redevelopment project area approved by such
joint powers authority. Such Project Area would include a military facility which is
subject to closure pursuant to Public Law 100-526 and certain areas in proximity thereto.
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All powers of the IVDA are vested in its governing body. Pursuant to the Redevelopment
Law, the lVDA may exercise broad govemmental functions and authority to accomplish
its purposes, including, but not limited to, the right to issue bonds and expend their
proceeds and the right to acquire, sell, develop, administer or lease property. The IVDA
may demolish buildings, clear land and cause to be constructed certain improvements
including streets, sidewalks and public utilities.
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One of the primary projects funded with IVDA 20% set aside is being used in the Arden-
Guthrie Focus Area.
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ARDEN-GUTHRIE FOCUS NEIGHBORHOOD PROGRAM
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This program covers the entire area where approximately one-hnndred, eighty-seven (187)
fourplexes are concentrated. The total costs (includes public and private funds) the
strategy is currently estimated to be approximately $7 to $10 million, the cost of which
would be phased in over the entire three (3) year. timeframe. The Arden-Guthrie Focus
Neighborhood includes a mixed variety of tenants/renters at each income level (very low,
lower, median and moderate). Furthermore, the strategy is flexible enough to at some
future point, pro-actively accommodate potential ownership opportunities for tenant
currently residing within the neighborhood using low and moderate housing funds. This
program includes the following:
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Rehabitation of one-hundred, eighty-seven fourplexes.
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ARDEN-GUTHRIE PROGRAM ACIllEVEMENTS
A. PROPERTY MANAGEMENT
Management services agreements are currently in place with nine (9) property owners in
the Arden-Guthrie "FOCUS" Neighborhood. The management company currently
manages eighteen (18) fourplex buildings and an apartment complex for a total of one
hundred eighty-eight (188) units in the project area.
B. PUBLIC IMPROVEMENTS
The sidewalk which ran between two buildings from Sterling Street to Argyle, south of
the 19th Street alley has been removed and a block wall sealed off. Grass has been
planted where tlle sidewalk used to be relative to this project to address slum blight using
the low and moderate housing fund.
Culide-Sacs with landscaping have been constructed within major streets to control traffic
and allow additional green belts to be established for the benefit the tenant population.
C. FOURPLEX REHABILITATION PROJECTS
There are currently four (4) fourplexes under rehabilitation in the area. Three (3) owners,
which represent a total of five (5) fourplexes are currently waiting for rehabilitation
assistance from the Development Department using low and moderate housing funds. To
date twenty-four (24) fourplexes have been rehabilitated at a cost of approximately 2.4
million.
D. LOS PADRlNOS COMMUNITY COLmON
This progranl was established to provide comprehensive clean-up slum blight activities
within selected focus neighborhoods as may be designated by the Agency from time to
time including, but not limited to, the Arden/Guthrie and focus neighborhood. The
Program activities include trash and debris removal, graffiti removal, landscaping services,
tree and shrub pruning and weed abatement.
E. MULTI-PURPOSE FACILITY
This Multi-Purpose Facility is a project that was completed in this area and is used for
various community programs. The San Bernardino City Schools, and the County
Department of Public Social Services use the facility for Adult Education, English is a
second language and General Educational Development Classes.
F. TRANSITIONAL HOUSING PROJECT
As the first Community Housing Development Organization under the federal Home
Investment Partnerships Act (HOME), Frazee Community Center received a loan to
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acquired and rehabilitate two (2) four-plex buildings within the Arden-Guthrie Project
Area. The two buildings, located on McKinley Street, are operated by Frazee as a
combination of low-income rental housing and transitional housing, with case management
services, for recently homeless families. A total of $393,200 in 1992-1993 and 1993-1994
HOME funds were expended on the acquisition, rehabilitation and operation of the
project. The project was completed in May, 1994 and is currently occupied by four
transitioning families and four low-income rental families.
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G.
ARDEN-GUTHRIE JOB TRAINING PROGRAM
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The Arden-Guthrie job training program was established with the cooperation of SBETA,
a non-profit organization and the Housing Division. SBETA is to provide job participant
selection, testing, accounting and contract documentation between the participating
contractors and employees. SBETA will reimburse the participating contractors with 505
of the employee wages, with an additional 50% of the wages coming from a CDBG Grant
to SBETA from the City.
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ADDENDUM #1
ASSEMBLY BILL NO. 315 CHAPTER 872 AMENDED AB 1290
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An act to amend Sections 33334.2, 33334.3, 33334.6, and 33413 of the Health and Safety
Code, relating to redevelopment.
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[Approved by Governor October 12, 1991. FDed with Secretary of State October 14, 1991.J
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AB 315, T. Friedman. Redevelopment: Low and Moderate Income Housing Fund.
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Under the existing Community Redevelopment Law, not less than 20% of all tax
increment revenues which are allocated to a redevelopment agency are required to
be held in a separate Low and Moderate Income Housing Fund and used by the
agency for the pwposes of increasing, improving and preserving the community's
supply of low and moderate-income housing available at affordable housing cost to
persons and families of specified income levels unless the agency makes certain
annual fmdings.
This bill would substantially revise the criteria for, and ability of, a redevelopment
agency to make those annual fmdings. This bill would also authorize agencies that
have more than one project area to satisfy the requirement of allocating not less
than 20% of all tax increment revenues by instead allocating the difference
between the amount allocated and the 20% required to the Low and Moderate
Income Housing Fund from tax increment revenues from other project areas.
Existing law requires, whenever dwelling units housing person and families of low
and moderate income are destroyed or removed from that housing market, as
specified, the redevelopment agency to rehabilitate, develop, or construct for rental
or sale to those persons and families an equal number of replacement dwelling
units within the territorial jurisdiction of the agency.
This bill would require each redevelopment agency, prior to January I, 1993, to
adopt a prescribed plan to comply with these requirements for each project area.
Because this bill would impose new duties on redevelopment agencies relating to
the allocation of tax increment revenues, the bill would impose a state-mandated
local program.
The California Constitution requires the state to reimburse local agencies and
school districts for certain costs mandated by the state. Statutory provisions
establish procedures for making that reimbursement, including the creation of a
State Mandates ClainlS Fund to pay the costs of mandates which do not exceed
$1,000,000 statewide and other procedures for claims whose statewide costs
exceed $1,000,000.
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This bill would provide that, if the Commission on State Mandates determines that
this bill contains costs mandated by the state, reimbursement for those costs shall
be made pursuant to those statutory procedures and, if the statewide cost does not
exceed $1,000,000, shall be made from the State Mandates Claims Fund.
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A.
SECTION 1. Section 33334.2 of the Health and Safety Code is amended to
read:
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33334.2. (a) Not less than 20 percent of all taxes which are allocated to the agency
pursuant to Section 33670 shall be used by the agency for the purposes of increasing,
improving, and preserving the community's supply oflow and moderate income housing
available at affordable housing cost, as defmed by Section 50052.5, to persons and
families oflow or moderate income, as defined in Section 50093, and very low income
households, as defmed in Section 50105, unless one of the following fmdings is made
annually by resolutions;
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(I) That no need exists in the community to improve, increase, or preserve the supply
of low and moderate income housing, including housing for very low income
households in a manner which would benefit the project area and that this fmding
is consistent with the housing element of the community's general plan required by
Article 10.6 (conunencing with Section 65580) of Chapter 3 of Division I of Title
7 of the Government Code, including its share of the regional housing needs of
very low income households and persons and families of low or moderate income.
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This fmding shall only be made if the housing element of the community's general
plan demonstrates that the community does not have a need to improve, increase,
or preserve the supply of low and moderate income housing available at affordable
housing cost to persons and families of low or moderate income and to very low
income households. This fmding shall only be made if it is consistent with the
planning agency's annual report to the legislative body on implementation of the
housing element required by subdivision (b) of Section 65400 of the Government
Code. No agency of a charter city shall make this fmding unless the planning
agency submits the report pursuant to subdivision (b) of Section 65400 of the
Government Code. This finding shall not take effect until the agency has complied
with subdivision (b) of this section.
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(2)
That some stated percentage less than 20 percent of the taxes which are allocated
to the agency pursuant to Section 33670 is sufficient to meet the housing needs of
the community, including its share of the regional housing needs of persons and
families of low or moderate income and very low income households, and that this
fmding is consistent with the housing element of the community's general plan
required by Article 10.6 (commencing with Section 65580) of Chapter 3 of
Division I of Title 7 of the Govemment Code. This finding shall only be made if
the housing element of the community's general plan demonstrates that a
percentage of low and moderate-income housing available at affordable housing
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cost persons and families oflow or moderate income and to very low income
honseholds. This finding shall only be made if it is consistent with the planning
agencies annual report to the legislative body implementation of the honsing
element required by subdivision (b) of Section 65400 of the Govemment Code.
No agency of a charter city shall make this finding unless the planning agency
submits the report pursuant to subdivision (b) of Section 65400 of the Govemment
Code. This finding shall not take effect until the agency has complied with
subdivision (b) of this section.
For purposes of making the findings specified in this paragraph and paragraph (1),
the housing element of the general plan of a city or county shall be current, shall
have been submitted to the Department of Housing and Community Development
within the applicable time period, and shall be in compliance with Article 10
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Govemment Code.
That the community is making a substantial effort to meet it's existing and
projected housing needs, including its chart of the regional housing needs, with
respect to persons and families of low and moderate income, particularly very low
income households, a identified in the housing element of the community's general
plan required by Article 10.6 (commencing with Section 65580) of Chapter 3 of
Division 1 of Title 7 of the Govemment Code, and that this effort, consisting of
direct fmancial contributions ofloeal functions used to increase and improve the
supply of housing affordable two persons and families of low or moderate income
and very low income households, is equivalent in impact to the funds otherwise
requirements to be set aside pursuant to this section. In addition to any other local
funds, these direct financial contributions may include federal or state grants paid
directly to a community and which the community has the discretion of using for
the purposes for which monies in the Low and Moderate Income Housing Fund
may be used. The legislative body shall consider the need which can be reasonable
foreseen because of displacement of persons and families of low or moderate
income or very low income households from within, or adjacent to, the project
area, because of increased employment opportunities, or because of any other
direct or indirect resnlt of implementation of the redevelopment plan. No fmding
under this subdivision may be made until the community has provided or ensured
the availability of replacement dwelling units as defined in Section 33411.2 and
until it has complied with the provisions of Article 9 (commencing with Section
33410).
In making the determination that other fmancial contributions are equivalent in
impact pursuant to this subdivision, the agency shall include only those fmanciaI
contributions which are directly related to programs or activities authorized under
subdivision (e) of this section.
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The authority for making the fmding specified in this paragraph shall expire on
June 30, 1993, except that the expiration shall not be deemed to impair contractual
obligations to bondholders or private entities incurred prior to May 1, 1991, and
made in reliance on the provisions of this paragraph. Agencies which make this
finding after June 30, 1993, shall show evidence that the agency entered into the
specific contractual obligation with the specific intention of making a fmding under
this paragraph in order to provide sufficient revenues to payoff the indebtedness.
Within 10 days following the making of a fmding under subdivision (a), the agency
shall send the Department of Housing and Community Development a copy of the
finding, including the factual information supporting the fmding and other factual
information in the housing element that demonstrates that either (1) the community
does not need to increase, improve, or preserve the supply of housing for low and
moderate income households, including very low income households, or (2) a
percentage less than 20 percent will be sufficient to meet the community's need to
improve, increase, and preserve the supply of housing for low and moderate
income households, including very low income households. Within 10 days
following the making of a fmding under paragraph (3) of subdivision (a), the
agency shall send the Department of Housing and Conununity Development a copy
of the fmding, including the factual infonnation supporting the fmding that the
community is making a substantial effort to meet its existing and projected housing
needs. Agencies which make this fmding after June 30, 1993, shall also submit
evidence to the department of its contractual obligations with bondholders or
private entities incurred prior to May 1, 1991, and made in reliance on this fmding.
If an agency is detennined by a court to have knowingly or megligently
misrepresented any material facts regarding the community's share of its regional
housing need for low and moderate income housing, including very low income
households or the community's production record in meeting its share of the
regional housing need pursuant to the report required by subdivision (b) of Section
65400 of the Government Code, the agency shall be liable for all court costs and
plaintiffs attorney fees and shall be required to allocate not less than 25 percent of
the agency's tax increment revenues to its Low and Moderate Income Housing
Fund in each year thereafter.
In any litigation to challenge or attack a finding made under paragraph (1), (2), or
(3) of subdivision (a), the burden shall be upon the agency to establish that the
fmding is supported by substantial evidence in light of the entire record before the
agency.
Nothing in this section shall be constructed as relieving any other public entity or
entity with the power of eminent domain any legal obligations for replacement or
relocation housing arise out of its activities.
In carrying out the purpose of this section, the agency may exercise any or all of its
power, including the following:
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(1)
Acquire real property or building sites subject to the provisions of Section
33334.16.
(2)
Improve real property or building sites with onsite or offsite improvements,
but only if the improvements directly and specifically improve or increase
the community's supply or low and moderate income housing.
(3)
Donate real property to private or public persons or entitled.
(4)
Finance insurance premiums pursuant to Section 33136.
(5)
Construct buildings or structures.
(6) Acquire buildings or structures.
(7) Rehabilitate buildings or structures.
(8) Provide subsidies to, or for the benefit of, very low income households, as
defined by Section 50105,lower income households, as defmed by Section
50079.5, or persons and families oflow or moderate income, as defined by
Section 50093, to the extent those households cannot obtain housing at
affordable costs on the open market. Housing units available on the open
market are those until developed without direct govemment subsidies.
(9) Develop plans, pay principal and interest on bonds,loans, advances, or
other indebtedness, or pay financing or carrying charges.
(10) Maintain the community's supply of mobile homes.
(11) Preserve the availability to lower income households or affordable housing
units in housing developments which are assisted or subsidized by public
entities and which are threatened with imminent conversion to market
rates.
The agency may use these funds to meet, in whole or in part the replacement
housing provisions in Section 33413. However, nothing in this section shall be
construed as limiting in any way the requirements of that section.
The agency may use these funds inside or outside the project area. The agency
may only use these funds outside the project area upon a resolution of the agency
and the legislative body that such use will be of benefit to the project. The
determination by the agency and the legislative body shall be fmal and conclusive
as to the issue of benefit to the project area. The Legislature fmds and declares
that the provision of replacement housing pursuant to Section 33413 is always of
benefit to a project. Unless the legislative body fmds before the redevelopment
plan is adopted, that the provision of low and moderate income housing outside
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the project area will be of benefit to the project, the project area shall include
property suitable for low and moderate income housing.
(h) The Legislature fmds and declares that expenditures or obligations incurred by the
agency pursuant to this section shall constitute an indebtedness of the project.
(i) The requirements of this section shall only apply to taxes allocated to a
redevelopment agency for which a fmal redevelopment plan is adopted on or after
January 1, 1977, or for any area which is added to a project by an amendment to a
redevelopment plan, which amendment is adopted on or after the effective date of
this section. An agency may, by resolution, elect to make all or part of the
requirements of this section applicable to any redevelopment project for which a
redevelopment plan was adopted prior to January I, 1977, subject to any
indebtedness incurred prior to the election.
SECTION 2. Section 33334.3 of the Health and Safety Code is amended to read:
33334.3
(a) The funds which are required by Section 33334.2 or 33334.6 to be used for the
purposes of increasing and improving the community's supply oflow and moderate
income housing shall be held in a separate Low and Moderate Income Housing
Fund until used.
(b) Any interest eamed by the Low and Moderate Income Housing Fund and any
repayments or other income to the agency for loans, advances, or grants, of any
kind from the Low and Moderate Income Housing Fund, shall accrue to and be
deposited in, the fund and may only be used in the marmer prescribed for the Low
and Moderate Income Housing Fund.
(c) The monies in the Low and Moderate Income Housing Fund shall be used to
increase, improve, and preserve the supply of low and moderate income housing
within the territorial jurisdiction of the agency.
(d) It is the intent of the Legislature that the Low and Moderate Income Housing Fund
be used to the maximum extent possible to defray the costs of production,
improvement, and preservation of low and moderate income housing and that the
amount of money spent for plarming and general administrative activities
associated with the development, improvement, and preservation of that housing
not be disproportionate to the amount actually spent for the costs of production,
improvement, or preservation of that housing. The agency shall determine
armually that the planning and administrative expenses are necessary for the
production, improvement, or preservation of low and moderate income housing.
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(e)(I) Planning and general administrative costs which may be paid with monies from the
Low and Moderate Income Housing Fund are those expenses incurred by the
agency which are directly related to the programs and activities authorized under
subdivision (e) of Section 33334.2 and are limited to the following:
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(A) Costs incurred for salaries, wages, and related costs of the agency's staff or
for services provided through interagency agreements, and agreements with
contractors, including indirect and indirect costs related thereto.
(B) Costs incurred by a nonprofit corporation which are directly attributable to
a specific project.
Legal, architectural, and engineering costs and other salary, wages, and costs
directly related to the planning and execution specific project which are authorized
under subdivision (e) of Section 33334.2 and which are incurred by a nonprofit
housing sponsor are not planning and administrative costs for the purpose of this
section, but are instead project costs.
The requirements of this subdivision apply to all new substantially rehabilitated
housing units developed or otherwise assisted, with monies from the Low and
Moderate Income Housing Fund, pursuant to an agreement approved by an agency
on or before January 1, 1988. Except to the extent a longer period of time may
required by other provisions of law, the agency shall require housing units subject
to this subdivision shall remain available and affordable housing costs to person
and families of low or moderate income and very low income households for the
longest feasible time, but for not less than the following periods of time, except
provided in Section 33334.13:
(1)
(2)
Fifteen years for rental units. However, the agency must replace rental
units with equally affordable and comparable replacement units in another
location within the community if (A) replacement units are available for
occupancy prior to the displacement of any persons and families of low or
moderate income residing in the units to be replaced and (B) the
comparable replacement units are not developed with monies from the Low
and Moderate Income Housing Fund.
Ten years for owner-occupied units. However the agency may pennit sales
of owner-occupied units prior to the expiration the lO-year period for a
price in excess of that otherwise pennit under this subdivision pursuant to
an adopted program which protects the agency's investment of monies from
the Low and Moderate Income Housing Fund, including, but not limited to
the equity sharing program which establishes a schedule of equity sharing
that pennits retention by the seller of a portion of the excess proceeds of
the sale shall be allocated to the agency deposited in the Low and
Moderate Income Housing Fund.
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The agency shall require the recording in the office of the county recorder
of covenants or restrictions implementing this subdivision for each parcel
or unit of real property subject to this subdivision. Notwithstanding any
other provision of law, the covenants restrictions shall run with the land
and shall be enforceable, again the original owner and successors in
interest, by the agency or the community.
"Housing", as used in this section includes residential housing as defmed in
subdivision (k) of Section 37912. The definitions of "lower income households"
and "very low income households" in Sections 50079.5 and 50105 shall apply to
this section. "Longest feasible time", as used in this section, includes, but is not
limited to, unlimited duration.
"Increasing, improving, and preserving the community's supply oflow and
moderate income housing", as used in this section and in section 33334.2, includes
the preservation of rental housing units assisted by federal, state, or local
government on the condition that units remain affordable to low and moderate
income households, including very low income households, for a specified period
of time, beyond the date the subsidies and use restrictions could be terminated and
the assisted housing units converted to market rate rentals. In preserving these
units the agency shall require the units remain affordable to persons and families of
low and moderate income and very low income households for the longest feasible
time. However, the agency may replace rental units with equally affordable and
comparable rental units in another location within the community if (1) the
replacement units in another location are available for occupancy prior to the
displacement of any persons and families of low or moderate income residing in
units to be replaced and (2) the comparable replacement units are not developed
with monies from the Low and Moderate Income Housing Fund.
Agencies that have more than one project area may satisfy the requirements of this
section by allocating in any fiscal year, less than 20 percent in one project area, if
the difference between the amount allocated and the 20 percent required, is instead
allocated, in that same fiscal year, to the Low and Moderate Income Housing Fund
from tax increment revenues from other project areas. Prior to allocating funds
pursuant to this subdivision, the agency shall make the finding required by
subdivision (g) of Section 33334.2.
C. SECTION 3.
Section 33334.6 of the Health and Safety Code is amended to read:
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The Legislature fmds and declares that the provision of housing is itself a
fundamental purpose of the Community Redevelopment Law and that a generally
inadequate statewide supply of decent, safe, and sanitary housing affordable to
persons and fatnilies oflow or moderate income, as defmed by Section 50093,
threatens the accomplishment of the primary purposes of the Community
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Redevelopment Law, including job creation, attracting new private investments,
and creating physical, economic, social, and environmental conditions to remove
and prevent the recurrence of blight. The Legislature further fmds and declares
that the provision and improvement of affordable housing, as provided by Section
33334.2, outside of redevelopment project areas can be of direct benefit to those
projects in assisting the accomplislunent of project objectives whether or not those
redevelopment projects provide for housing within the project area. The
Legislature fmds and determines that the provisions of affordable housing by
redevelopment agencies and the use of taxes allocated to the agency pursuant to
subdivision (b) of Section 33670 is of statewide benefit and of particular benefit
and assistance to all local governmental agencies in the areas where the housing is
provided. (b) This section is applicable to all project areas, or portions of project
areas, which are not subject to Section 33334.2, except that a project area, or
portion of a project area, for which a resolution was adopted pursuant to
subdivision (i) of Section 33334.2 is subject to this section. Project areas subject
to this section which are merged are subject to the requirements of both this
section and Section 33487. The deposit of taxes into the Low and Moderate
Income Housing Fund in compliance with either this section or Section 33487 shall
satisfy the requirements of both sections in the year those taxes are deposited. (c)
Except as other wise pennitted by subdivisions (d) and (e), not less than 20
percent of the taxes allocated to the agency pursuant to Section 33670 from
project areas specified in subdivision (b) for the 1985-86 fiscal year and each
succeeding fiscal year shall be deposited into the Low and Moderate Income
Housing Fund established pursuant to Section 33334.3 and used for the purposes
set forth in Section 33334.2, unless the agency, by resolution, makes one of the
findings specified in paragraph (3) of subdivision (a) of that section shall expire as
specified in that paragraph. Subdivisions (b) and (c) of Section 33334.2 apply if
an agency makes any of those findings.
In any fiscal year, the agency may deposit less than the amount required by
subdivision (c) into the Low and Moderate Income Housing Fund if the agency
finds that the difference between the amount deposited and the amount required by
subdivision (c) is necessary to make payments under existing obligations of
amounts due or required to be committed, set aside, or reserved by the agency
during that fiscal year and which are used by the agency for that purpose. For
purposes for this section, "existing obligations" means the principal of, and interest
on,loans, monies advanced to, or indebtedness (whether funded, refunded,
assumed, or otherwise) incurred by the agency to fmance or refmance, in whole or
in part, any redevelopment project existing on, and created prior to January I,
1986, and contained on that statement of existing obligations adopted pursuant to
subdivision (f). Obligations incurred on or after January 1, 1986, shall be deemed
existing obligations for purposes of this section if the net proceeds are used to
refmance existing obligations contained on the statement.
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In each fIScal year prior to July 1, 1996, the agency may deposit less than the
amount required by subdivisions (c) and (d) into the Low and Moderate Income
Housing Fund if the agency fmds that the deposit ofless than the amount required
by those subdivisions is necessary in order to provide for the orderly and timely
completion of public and private projects, programs, or activities approved by the
agency prior to January 1, 1986, which are contained on the statement of existing
programs adopted pursuant to subdivision (f). Approval of these projects,
programs, and activities means approval by the agency of written documents which
demonstrate an intent to implement a specific project, program, or activity.
Any agency which deposits less than the amount required by subdivision (c) into
the Low and Moderate Income Housing Fund pursuant to subdivision (d) or (e)
shall adopt prior to September 1, 1986, by resolution, after a noticed public
hearing, a statement of existing obligations or a statement of existing programs, or
both.
(1)
The agency shall prepare and submit the proposed statement to the
legislative body and to the Department of Housing and Community
Development prior to giving notice of the public hearing. Notice of the
time and place of the public hearing shall be transmitted to the Department
of Housing and Community Development at least 15 days prior to the
public hearing and notice of the time and place of the public hearing shall
be published in a newspaper of general circulation in the community once a
week for at least two successive week prior to the public hearing. The
legislative body shall maintain a record of the public hearing.
(2)
A copy of the resolution adopted by the agency, together with any
amendments to the statement of the agency shall be transmitted to the
Department of Housing and Community Development within 10 days
following adoption of the resolution by the agency.
(3)
A statement of existing obligations shall describe each existing obligation
and, based upon the best available information, as detennined by the
agency, list the total amount of the existing obligation, the annual payments
required to be made by the agency pursuant to the existing obligation, and
the date the existing obligation will be discharged in full.
(4)
A statement of existing programs shall list the specific public and private
projects, programs, or activities approved prior to January 1, 1986, which
are necessary for the orderly completion of the redevelopment plan as it
existed on January 1, 1986,. No project, program, or activity shall be
included on the statement of existing progranls unless written evidence of
the existence and approval of the project, program, or activity prior to
January 1, 1986, is attached to the statement of existing programs.
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If, pursuant to subdivision (d) or (e) the agency deposits less than 20 percent of
the taxes allocated to the agency pursuant to Section 33670 in the 1985-86 fiscal
year or any subsequent fiscal year in the Low and Moderate Income Housing
Fund, the amount equal to the difference between 20 percent of the taxes allocated
to the agency pursuant to Section 33670 for each affected project and the amount
deposited that year shall constitute deficit of the project. The agency shall adopt a
plan to eliminate the deficit in subsequent years as determined by the agency.
The obligations imposed by this section, including deficits, if any, created under
this section, are hereby declared to be an indebtedness of the redevelopment
project to which they relate, payable from taxes allocated to the agency pursuant
to Section 33670, and shall constitute an indebtedness of the agency with respect
to the redevelopment project until paid in full.
In any litigation to challenge or attack a statement of existing obligations, the
decision by the agency after the public hearing to include existing obligation on the
statement of existing obligations, or the decision by the agency after the public
hearing to include a project, program, or activity on the statement of existing
programs, the court shall uphold the action of the agency unless the fmds and
declares that this standard of review is necessary in order to protect against the
possible impainnent of existing obligations, programs, and activities because
agencies with project areas adopted prior to January I, 1977, have incurred
existing obligations and have adopted projects, programs, and activities with the
authority to receive and pledge the entire allocation of funds authorized by Section
33670.
D. SECTION 4. Section 33413 of the Health and Safety Code is amended to read:
Whenever dwelling units housing persons and families of low or moderate income are
destroyed or removed from the low- and moderate-income housing market as part of a
redevelopment project which is subject to a written agreement with the agency or where
fmancial assistance has been provided by the agency, the agency shall, within four years of
the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated,
developed, or constructed, for rental or sale to persons and families of low or moderate
income, an equal number of replacement dwelling units which have an equal number of
replacement dwelling units which have an equal or greater number of bedrooms as those
destroyed or removed after September 1, 1989,75 percent of the replacement dwelling
units shall replace dwelling units available at affordable housing cost in the same income
level of very low income households, lower income households, and persons and families
of low and moderate income, as the persons displaced from those destroyed or removed
units.
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(1)
At least 30 percent of all new or rehabilitated dwelling units developed by an
agency shall be available at affordable housing cost to persons and families of low
or moderate income. Not less than 50 percent of the dwelling units required to be
available at affordable housing cost to persons and families of low or moderate
income shall be available at affordable housing cost to, and occupied by, very low
income households.
(2)
At least 15 percent of all new or rehabilitated dwelling units developed with the
project area by public or private entities or persons other than the agency shall be
available at affordable housing cost to persons and families of low or moderate
income. Not less than 40 percent of the dwelling units required to be available at
affordable housing cost to persons and families of low or moderate income shall be
available at affordable housing cost to very low income households.
(3)
The requirements of this subdivision shall apply independently of the requirements
of subdivision (a) and in the aggregate to housing made available pursuant to
paragraphs (1) and (2), respectively, and not to each individual case of
rehabilitation, development, or construction of dwelling units.
(4)
Each redevelopment agency shall adopt a plan to comply with the requirements of
this subdivision for each project area. The plan shall be consistent with, and may
be included within, the community's housing element. The plan shall be reviewed
and, if necessary, amended at least every five years in conjunction with the housing
element cycle. The plan shall ensure that the requirements of this subdivision are
met every 10 years. The plan shall include estimates of the number of new or
rehabilitated residential units to be developed within the project area and the
number of units for very low income households and low and moderate income
households which will be developed in order to meet the requirements of
paragraph (2). The plan shall also include estimates of the number of agency
developed residential units which will be developed during the next five years if
any and the number of units for very low income households and low and
moderate income households which will be developed during the same period of
time to meet the requirements of paragraph (1). If the requirements of this
subdivision are not met by the end of each 10-year period, the agency shall meet
these goals on an annual basis until the requirements within for the lO-year period
are met. If the agency has exceeded the requirements within the 10-year period,
the agency may count the units that exceed the requirement in order to meet the
requirements during the next lO-year period.
The agency shall require that the aggregate number of replacement dwelling units and
other dwelling units rehabilitated, developed, or constructed pursuant to subdivision (a) or
(b) remain available at affordable housing cost to persons and families of low income,
moderate income, and very low income households, respectively, for the longest feasible
time, as determined by the agency, but for not less than the period of the land use controls
established in the redevelopment plan, except to the extent a longer period of time may be
required by other provisions of law. If land on which those dwelling units are located is
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deleted from the project area, the agency shall continue to require that those units remain
affordable as specified in the previous sentence. These requirements shall be made
enforceable in the same manner as provided in subdivision (e) of Section 33334.3.
(I)
This section applies only to redevelopment projects for which a fmal
redevelopment plan is adopted pursuant to Article 5 (commencing with Section
33360) on or after January I, 1976. In addition, subdivision (a) shall apply to any
other redevelopment project with respect to dwelling units destroyed or removed
from the low and moderate income housing market on or after January I, 1996,
irrespective of the date of adoption of a final redevelopment plan or an amendment
to a fmal redevelopment plan adding areas to a project area. Additionally, any
agency may, by resolution, elect to make all or part of the requirements of this
section applicable to any redevelopment project of the agency for which the fmal
redevelopment plan was adopted prior to January 1,1976.
(2)
An agency may, by resolution, elect to require that whenever dwelling units
housing persons or families of low or moderate income ate destroyed or removed
from the low and moderate income housing market as part of a redevelopment
project, the agency shall replace each dwelling unit with up to two replacement
dwelling units pursuant subdivision (a).
Except as otherwise authorized by law, this section does not authorize an agency to
operate a rental housing development beyond the period reasonably necessary to sell or
lease the housing development.
Notwithstanding subdivision (a), the agency may replace destroyed or removed dwelling
units with a fewer number of replacement dwelling units if the replacement dwelling units
meet both of the following criteria:
(1)
The total number of bedrooms in the replacement dwelling units equal or exceed
the number of bedrooms in the destroyed or removed units. Destroyed or
removed units having one or no bedroom are deemed for this pmpose to have one
bedroom.
(2)
The replacement units are affordable to the same income level of households as the
destroyed or removed units.
"Longest feasible time", as used in this section, includes, but is not limited to, unlimited
duration.
SECTION 5
Notwithstanding Section 17610 of the Government Code, if the Commission on State
Mandates determines that this act cuntains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of Govemment Code. If the
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statewide cost of the claim for reimbursement does not exceed one million dollars
($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless otherwise specified in
this act, the provisions of this act shall become operative on the same date that the act
takes effect pursuant to the California Constitution.
SECTIONS OF THE COMMUNITY REDEVELOPMENT LAW
33334.2. Housin!: for persons and families oflow or moderate income: findingll
(a)
Not less than 20 percent of all taxes which are allocated to the agency pursuant to
Section 33370 shall be used by the agency for the purposes of increasing,
improving, and preserving the cornmunity's supply oflow and moderate income
housing available at affordable housing cost, as defmed by Section 50052.5, to
persons and families oflow or moderate income, as defined in Section 50093, and
very low income households, as defmed in Section 50105, unless one of the
following fmdings is made annually by resolution:
(A) That no need exists in the community to improve, increase, or preserve the supply
of low and moderate income housing, including housing for very low income
households in a manner which wonld benefit the project area and that this fmding
is consistent with the housing element of the community's general plan required by
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 10fTitle
7 of the Government Code, including its share of the regional housing needs of
very low income households and persons and families of low or moderate income.
(B) This fmding shall only be made if the housing element of the community's general
plan demonstrates that the community does not have a need to improve, increase,
or preserve the supply oflow and moderate income housing available at affordable
housing cost to persons and families oflow or moderate income and to very low
income households. This fmding shall only be made if it is consistent with the
planning agency's annual report to the legislative body of implementation of the
housing element required by subdivision (b) of Section 65400 of the Government
Code. No agency of a charter city shall make this fmding unless the planning
agency submits the report pursuant to subdivision (b) of Section 65400 of the
Government Code. This finding shall not take effect until the agency has complied
with subdivision (b) of this section.
(A) That some stated percentage less than 20 percent of the taxes which are allocated
to the agency pursuant to Section 33670 is sufficient to meet the housing needs of
the community, including its share of the regional housing needs of persons and
families of low or moderate income and very low income households, and that this
fmding is consistent with the housing element of the community's general plan
required by Article 10.6 (commencing with Section 65580) of Chapter 3 of
Division 1 of Title 7 of the Government Code.
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(B) This fmding shall only be made if the housing element of the community's general
plan demonstrates that a percentage of less than 20 percent will be sufficient to
meet the community's need to improve, increase, or preserve the supply of low and
moderate income housing available at affordable housing cost to persons and
families oflow or moderate income and to very low income households. This
finding shall only be made if it is consistent with the planning agency's annual
report to the legislative body on implementation of the housing element required
by subdivision (b) of Section 65400 of the Government Code. No agency of a
charter city shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code. This
fmding shall not take effect until the agency has complied with subdivision (b) of
this section.
(C) For purposes of making the fmdings specified in this paragraph and paragraph (1),
the housing element of the general plan of a city or county shall be current, shall
have been submitted to the Department of Housing and Community Development
within the applicable time period, and shall be in compliance with Article 10.6
(commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
(A) That the community is making a substantial effort to meet its existing and
projected housing needs, including its share of the regional housing needs, with
respect to persons and flllnilies of low and moderate income, particularly very low
income households, as identified in tlle housing element of the community's general
plan required by Article 10.6 (commencing with Section 65580) of Chapter 3 of
Division 1 of Title 7 of the Government Code, and that tlIis effort, consisting of
direct fmancial contributions of local funds used to increase and improve the
supply of housing affordable to persons and fanillies of low or moderate income
and very low income households, is equivalent in impact to the funds otherwise
required to be set aside pursuant to this section. In addition to any other local
funds, these direct fmancial contributions may include federal or state grants paid
directly to a community and which the community has the discretion of using for
the purposes for which monies in the Low and Moderate Income Housing Fund
may be used. The legislative body shall consider the need which Cllll be reasonably
foreseen because of displacement of persons and fanillies of low or moderate
income or very low income households from within, or adjacent to , the project
area, because of increased employment opportunities, or because of lIllY other
direct or indirect result of implementation of the redevelopment plan. No fmding
under this subdivision may be made until the community has provided or ensured
the availability of replacement dwelling units as defmed in Section 33411.2 and
until it has complied with the provisions of Article 9 (commencing with Section
33410).
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(B) In making the determination that other fmancial contributions are equivalent in
impact pursuant to this subdivision, the agency shall include only those fmancial
contribution which are directly related to programs or activities authorized under
subdivision (e) of this section.
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(C) The authority for making the fIDding specified in this paragraph shall expire on
June 30, 1993, except that the expiration shall not be deemed to impair contractual
obligations to bondholders or private entities incurred prior to May I, 1991, and
made in reliance on the provisions of this paragraph. Agencies which make this
finding after June 30,1993, shall show evidence that the agency entered into the
specific contractual obligation with the specific intention of making a fIDding under
this paragraph in order to provide sufficient revenues to payoff the indebtedness.
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(b) Within 10 days following the making ofa fIDding under either paragraph (1) or (2)
of subdivision (a), the agency shall send the Department of Housing and
Conununity Development a copy of the fmding, including the factual information
supporting the fmding and other factual information in the housing element that
demonstrates that either (1) the community does not need to increase, improve, or
preserve the supply of housing for low-and moderate-income household, including
very low income households, or (2) a percentage less than 20 percent will be
sufficient to meet the community's need to improve, increase, and preserve the
supply of housing for low -and moderate-income households, including very low
income households. Within 10 days following the making of a finding under
paragraph (3) of subdivision (a), the agency shall send tlle Department of Housing
and Conununity Development a copy of the fmding , including the factual
information supporting the fIDding that the community is making a substantial
effort to meet its existing and projected housing needs. Agencies which make this
finding after June 30, 1993, shall also submit evidence to the department of its
contractual obligations with bondholders or private entities incurred prior to May
I, 1991, and made in reliance on this finding.
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(c) In any litigation to challenge or attack a fmding made under paragraph (I), (2), or
(3) of subdivision (a), the burden shall be upon the agency to establish that the
finding is supported by substantial evidence in light of the entire record before the
agency. If an agency is determined by a court to have knowingly misrepresented
any material facts regarding the community's share of its regional housing need for
low-and moderate-income housing, including very low income households, or the
conununity's production record in meeting its share of the regional housing need
pursuant to the report required by subdivision (b) of Section 65400 of the
Government Code, the agency shall be liable for all court costs and plaintiffs
attorney's fees, and shall be required to allocate not less than 25 percent of the
agency's tax increment revenues to its Low and Moderate Income Housing Fund in
each year thereafter.
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Nothing in this section shall be construed as relieving any other public entity or
entity with the power of eminent domain of any legal obligations for replacement
or relocation housing arising out of its activities.
In carrying out the purposes of this section, the agency may exercise any or all of
its powers, including the following:
(1) Acquire real property or building sites subject to Section 33334.16.
(2)
Improve real property or building sites with onsite improvements, but only
if either (A) the improvements are made as part of a program which results
in the new construction or rehabilitation of affordable housing units for low
or moderate income persons that are directly benefitted by the
improvements or (B) the agency fmds that the improvements are necessary
to eliminate a specific condition that jeopardizes the health or safety of
existing low or moderate income residents.
(3)
Donate real property to private or public persons or entities.
(4)
Finance insurance premiums pursuant to Section 33136.
(5)
Construct buildings or structures.
(6) Acquire buildings or structures.
(7) Rehabilitate buildings or structures.
(8) Provide subsides to, or for the benefit of, very low income households, as
defmed by Section 50105,lower income households, as defmed by Section
50079.5, or persons and families oflow or moderate income, as defmed by
Section 50093, to the extent those households cannot obtain housing at
affordable costs on the open market. Housing units available on the open
market are those units developed without direct government subsidies.
(9) Develop plans, pay principal and interest on bonds,loans, advances, or
other indebtedness, or pay financing or carrying charges.
(10) Maintain the community's supply of mobile homes.
(11) Preserve the availability to lower income households of affordable housing
units in housing developments which are assisted or subsidized by public
entities and which are threatened with imminent conversion to market
rates.
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(f) The agency may use these funds to meet, in whole or in part, the replacement
housing provisions in Section 33413. However, nothing in this section shall be
construed as limiting in any way the requirements of that section.
(g) The agency may use these funds inside or outside the project area. The agency
may only use these funds outside the project are upon a resolution of the agency
and the legislative body that such use will be of benefit to the project. The
determination by the agency and the legislative body shall be final and conclusive
as to the issue of benefit to the project area. The Legislative fmds and declares
that the provision of replacement housing pursuant to Section 33413 is always of
benefit to a project. Unless the legislative body fmds before the redevelopment
plan is adopted, that the provisions of low and moderate income housing outside
the project area will be of benefit to the project, the project area shall include
property suitable for low and moderate income housing.
(h) The Legislative finds and declares that expenditures or obligations incurred by the
agency pursuant to this section shall constitute an indebtedness of the project.
(i) The requirements of this section shall only apply to taxes allocated to a
redevelopment agency for which a final redevelopment plan is adopted on or after
January 1, 1977, or for any area which is added to a project by an amendment to a
redevelopment plan, which amendment is adopted on or after the effective date of
this section. An agency may, by resolution, elect to make all or part of the
requirements of this section applicable to any redevelopment project for which a
redevelopment plan was adopted prior to January I, 1977, subject to any
indebtedness incurred prior to the election.
33334.6 Deposit of tax increment monies into low and moderate income housing
fund: legislative findings: applicabili(y of section: existing obligations: completion
of projects. programs. or activities: statement of existing obligations or programs:
deficit: indebtedness: standard of review
(a) The Legislature finds and declares that the provision of housing is itself a
fundamental putpose of the Community Redevelopment Law and that generally
inadequate statewide supply of decent, safe, and sanitary housing affordable to
persons and families oflow or moderate income, as defined by Section 50093,
threatens the accomplishment of the primary putposes of the Community
Redevelopment Law, including job creation, attracting new private investments,
and creating physical, economic, social, and environmental conditions to remove
and prevent the recurrence of blight. The Legislature further fmds and declares
that the provision and improvement of affordable housing, as provided by Section
33334.2, except that a project area, or portion of a project area, for which a
resolution was adopted pursuant to subdivision (i) of Section 33334.2 is subject to
this section. Project areas subject of this section which are merged prior to, or on
or after, January I, 1986, are subject to the requirements of both this section and
Section 33487. The deposit of taxes into the Low and Moderate Income Housing
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Fund in compliance with either this section or Section 33487 shall satisfy the
requirements of both sections in the year those taxes are deposited.
Except as otherwise permitted by subdivisions (d) and (e), not less than 20 percent
of the taxes allocated to the agency pursuant to Section 33670 from project areas
specified in subdivision (b) for the 1985-86 fiscal year and each succeeding fiscal
year shall be deposited into the Low and Moderate Income Housing Fund
established pursuant to Section 33334.3 and used for the purposes set forth in
Section 33334.2, unless the agency, by resolution, makes one of the fmdings
described in paragraphs (1) to (3), inclusive, of subdivision (a) of Subdivision (a)
of that section shall expire as specified in that paragraph. Subdivisions (b) and (c)
(of Section 33334.2 apply if an agency makes any of those findings.
In any fiscal year, the agency may deposit less than the amount required by
subdivision (c) into the Low and Moderate Income Housing Fund if the agency
finds that the difference between the amount deposited and the amount required by
subdivision (c) is necessary to make payments under existing obligations of
amounts due or required to be committed, set aside, or reserved by the agency
during that fiscal year and which are used by the agency for that purpose. For
purposes of tlus section, "existing obligations" means the principal of, and interest
on, loans, monies advanced to or indebtedness (whether funded, refunded,
assumed, or otherwise) incurred by the agency to finance or refmance, in whole or
in part, any redevelopment project existing obligations for purposes of this section
if the net proceeds are used to refinance existing obligations contained on the
statement.
In each fiscal year prior to July 1, 1996, the agency may deposit less than the
amount required by subdivisions (c) and (d) into the Low and Moderate Income
Housing Fund if the agency finds that the deposit of less than the amount required
by those subdivisions is necessary in order to provide for the orderly and timely
completion of public and private projects, programs, or activities approved by the
agency prior to January 1, 1986, which are contained on the statement of existing
programs adopted pursuant to subdivision (f). Approval of these projects,
programs, and activities means approval by the agency of written documents which
demonstrate an intent to implement a specific project, program, or activity and is
not lin1i.ted to fmal approval of a specific project, program, or activity.
Any agency which deposits less than the amount required by subdivision (c) into
the Low and Moderate Income Housing Fund PUrsuatlt to subdivision (d) or (e)
shall adopt prior to September 1, 1986, by resolution, after a noticed public
hearing, a statement of existing obligations or a statement of existing programs, or
both.
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(1)
The agency shall prepare and submit the proposed statement to the
legislative body and to the Department of Housing and Conununity
Development prior to giving notice of the public hearing. Notice of the
time and place of the public hearing shall be transmitted to the Department
of Housing and Community Development at least 15 days prior to the
public hearing and notice of the time and place of the public hearing shall
be published in a newspaper of general circulation in the conununity once a
week for at least two successive weeks prior to the public hearing. The
legislative body shall maintain a record of the public hearing.
(2)
A copy of the resolution adopted by the agency, together with any
amendments to the statement of the agency, shall be transmitted to the
Department of Housing and Community Development within 10 days
following adoption of the resolution by the agency.
(3)
A statement of existing obligations shall describe each existing obligation
and based upon the best available information, as detennined by the
agency, list the total amount of the existing obligation, the annual payments
required to be made by the agency pursuant to the existing obligation, and
the date the existing obligation will be discharged in full.
(4)
A statement of existing programs shall list the specific public and private
projects, programs, or activities approved prior to January 1, 1986, which
are necessary for the orderly completion of the redevelopment plan as it
existed on January 1, 1986. No project, program, or activity shall be
included on the statement of existing programs unless written evidence of
the existence and approval of the project, program, or activity prior to
January 1, 1986, is attached to the statement of existing programs.
If, pursuant to subdivision (d) or (e), the agency deposits less than 20 percent of
the taxes allocated to the agency pursuant to Section 33670 in the 1985-86 fiscal
year or any subsequent fiscal year in the Low and Moderate Income Housing Fund
the amount equal to the difference between 20 percent of the taxes allocated to the
agency pursuant to Section 33670 for each affected project and the amount
deposited that year shall constitute a deficit of the project. The agency shall adopt
a plan to eliminate the deficit in subsequent years as detennined by the agency.
The obligations imposed by this section, including deficits, if any, created under
this section, are hereby declared to be an indebtedness of the redevelopment
project to which they relate payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency with respect to
the redevelopment project until paid in full.
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In any litigation to challenge or attack a statement of existing obligations, the
decision by the agency after the public hearing to include an existing obligation on
the statement of existing obligations, or the decision by the agency after the public
hearing to include a project, program, or activity on the statement of existing
programs, the court shall uphold the action of the agency unless the court [mds
that the agency has abused its discretion. The Legislature [mds and declares that
this standard of review is necessary in order to protect against the possible
impairment of existing obligations, programs, and activities because agencies with
project areas adopted prior to January I, 1977, have incurred existing obligations
and have adopted projects, programs, and activities with the authority to receive
and pledge the entire allocation of funds authorized by Section 33670.
ADDED AMENDMENTS SENATE BILL 732
A. HEALTH AND SAFETY CODE SECTION
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1. SECTION 33320.1
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"Project area" means, except as provided in Section 33320.2, 33320.3, 33320.4, or
33492.3, a predominantly urbanized area of a community which is a blighted area,
the redevelopment of which is necessary to effectuate the public purposes declared
in this part, and which is selected by the planning commission pursuant to Section
33322.
As used in this section, "predominantly urbanized" means that not less than 80
percent of the land in the project area:
(I)
Has been or is developed for urban uses; or
(2)
Is characterized by the condition described in paragraph (4) of
subdivision (a) of Section 33031; or
(3)
Is an integral part of one or more areas developed for urban uses which are
surrowlded or substantially surrounded by parcels which have been or are
developed for urban uses. Parcels separated by only an improved right-of-
way shall be deemed adjacent for the purpose of this subdivision.
For the purposes of this section, a parcel of property as shown on the official maps
of the county assessor is developed if that parcel is developed in a manner which is
either consistent with zoning or is otherwise permitted under law.
The requirement that a project be predominantly urbanized shall apply only to a
project area for which a [mal redevelopment plan is adopted on or after January I,
1984, or to an area which is added to a project area by an amendment to a
redevelopment plan, which amendment is adopted on or after January I, 1984.
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2. SECTION 33328.5
(a) If a redevelopment agency proposes to use the equalized assessment roll for the
year following the equalized assessment roll which the redevelopment agency
advised it would use pursuant to Section 33328, the redevelopment agency shall,
prior to the adoption of the redevelopment plan using that different equalized
assessment roll, either notify the county officials, taxing agencies, and the State
Board of Equalization of the change in the equalized assessment roll that it
proposes to use for the allocation of taxes pursuant to Section 33670 or prepare a
report containing the information specified in subdivisions (a),(b),(c),(d),(e),and (0
of Section 33328.
(b) Upon receipt of a notice pursuant to subdivision (a), the county officials charged
with the responsibility of allocating taxes under Section 33670 and 33670.5 shall
prepare and deliver to the redevelopment agency a report containing the
information specified in subdivisions (a), (b), (c), (d), (e), and (0 of Section 33328.
The report shall he prepared and delivered within the time periods specified in
Section 33328 for reports prepared pursuant to that section. If a redevelopment
agency gives the notice specified in subdivision (a), the redevelopment plan
specified in the notice shall not be adopted until the time period for delivery of the
report has expired.
(c) At least 14 days prior to the public hearing on the redevelopment plan for which
the redevelopment agency proposes to use a different equalized assessment roll,
the redevelopment agency shall prepare and deliver to each taxing agency a
supplementary report analyzing the effect of the use of the different equalized
assessment roll which shall include those subjects required by subdivisions (b),(e),
and (n) of Section 33352. In lieu of a supplementary report.
(d) A redevelopment agency shall not he required to prepare a subsequent preliminary
report specified in Section 33344.5, unless the report prepared pursuant to
subdivision (b) states that the total assessed value in the project area is less than
the total assessed value in the project area contained in the original report prepared
pursuant to Section 33328, in which case a new preliminary report shall be
prepared.
(e) The use of a different assessment roll pursuant to this section shall meet the
requirements of Section 16 of Article XVI of the California Constitution.
(f) This section shall only apply to redevelopment plans adopted on or after January 1,
1993. The Legislature fmds and declares that the enactment of this section shall
not be deemed to invalidate or limit the adoption of redevelopment plans pursuant
to a different procedure prior to January 1, 1993.
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3. SECTION 33333.2
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A redevelopment plan containing the provisions set forth in Section 33670 shall
contain all of the following limitations. A redevelopment plan that does not
contain the provisions set forth in Section 33670 shall contain the limitations in
paragraph(4):
(A) A time limit on the establishing ofloans, advances, and indebtedness to be
paid with the proceeds of property taxes received pursuant of Section
33670 to fmance in whole or in part the redevelopment project, which may
not exceed 20 years from the adoption of the redevelopment plan, except
by amendment of the redevelopment plan as authorized by subparagraph
(B). This limit, however, shall not prevent agencies from incurring debt to
be paid from the Low and Moderate Income Housing Fund or establishing
more debt in order to fulfill the agency's housing obligations under Section
33413. The loans, advances, or indebtedness may be repaid over a period
of time longer than this time limit as provided in this section. No loans,
advances, or indebtedness to be repaid from the allocation of taxes shall be
established or incurred by the agency beyond this time limitation. :I:Im
limit shall not prevent agencies from refinancing. refunding, or
restructuring indebtedness after the time limit if the indebtedness is
not increased and the time during which the indebtedness is to be
repaid is not extended bt:)'ond the time limit to repay indebtedness
required by this section.
(B) The time limitation established by subparagraph (A) may be extended only
by amendment of the redevelopment plan after the agency fmds, based on
substantial evidence, that (i) significant blight remains within the project
area; and (ii) this blight cannot be eliminated without the establishment of
additional debt. However, this amended time limitation may not exceed 30
years from the effective date of the ordinance adopting the redevelopment
plan.
A time limit, not to exceed 30 years from the adoption of the redevelopment plan,
on the effectiveness of the redevelopment plan. After the time limit on the
effectiveness of the redevelopment plan, the agency shall have no authority to act
pursuant to the redevelopment plan except to pay previously incurred indebtedness
and to enforce existing covenants or contracts, unless the agency has not
completed its housing obligations pursuant to Section 33413, in which case the
agency shall retain its authority to implement requirements under Section 33413,
including its ability to incur and pay indebtedness for this purpose, and shall use
this authority to complete these housing obligations as soon as is reasonably
possible.
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A time limit, not to exceed 45 years from the adoption of the redevelopment plan,
to repay indebtness with the proceeds of property taxes received pursuant to
Section 33670. After the time limit established pursuant to this paragraph, an
agency may not receive property taxes pursuant to Section 33670.
A time limit, not to exceed 12 years from the adoption of the redevelopment plan,
for commencement of eminent domain proceedings to acquire property within the
project area. lhis time limitation may be extended only by amendment of the
redevelopment plan.
If a redevelopment plan is amended to add territory. the amendment shall
contain the time limits required by this section.
1his section shall apply only to redevelopment projects for which a fmal
redevelopment plan is adopted pursuant to Article 5 (commencing with Section
33360) on or after Jannary 1. 1994. and to amendment that add territory and
that are adopted on or after January 1, 1994.
SECTION 33333.4
Every legislative body which adopted a fmal redevelopment plan prior to October
1, 1976, that contains the provisions set forth in Section 33670 but which does not
contain all of the limitations required by Section 33333.2, shall adopt an ordinance
on or before December 31,1986, which contains all of the following:
A limitation on the number of dollars of taxes which may be divided and allocated
to the redevelopment agency pursuant to the plan, including any amendments to
the plan. Taxes shall not be divided and shall not be allocated to the
redevelopment agency beyond that limitation.
A time limit on the establishing of loans, advances_, and indebtedness to finance in
whole, or in part, the redevelopment project. No loans, advances, or indebtedness
to be repaid from the allocation of taxes shall be established or incurred by the
agency beyond the time limitation.
A time limit, not to exceed 12 years, for commencement of eminent domain
proceedings to acquire property within the project area.
The limitations established in the ordinance adopted pursuant to this section shall
apply to the redevelopment plan as if the redevelopment plan had been amended to
include those limitations. However, in adopting the ordinance, neither the
legislative body not the agency is required to comply with Article 12 (commencing
with Section 33450) or any other provision of this part relating to the amendment
of redevelopment plans.
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The Legislative fmds and declares that this is necessary because redevelopment agencies
with project areas established prior to October 1, 1976, have incurred existing obligations
and indebtedness and have adopted projects, programs, and activities with the authority to
receive and pledge the entire allocation of taxes authorized by Section 33670 and that it is
necessary to protect against the possible impairment of existing obligations and
indebtedness and to allow the completion of adopted projects and programs.
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The limitations established in the ordinance adopted pursuant to this section shall
not be applied to limit allocation of taxes to an agency to the extent required to
eliminate project deficits created under subdivision (g) of Section 33334.6 in
accordance with the plan adopted pursuant thereto for the purpose of eliminating
the deficit. In the event of a conflict between these limitations and the obligations
under Section 33334.6, the legislative body shall amend the ordinance adopted
pursuant to this section to modify the limitations to the extent necessary to permit
compliance with the plan adopted pursuant to subdivision (g) of Section 33334.6
and to allow full expenditure of money's in the agency's Low and Moderate
Income Housing Fund in accordance with Section 33334.3. The procedure for
amending the ordinance pursuant to this subdivision shall be the same as for
adopting the ordinance under subdivision (b).
This section shall not be constructed to allow the impairment of any obligation or
indebtedness incurred by the legislative body or the agency pursuant to this part.
In any litigation to challenge or attack any ordinance adopted pursuant to this
section, the court shall sustain the actions of the legislative body and the agency
unless the court fmds those actions were arbitrary or capricious.
The ordinance adopted by the legislative body in compliance with this section does
not relieve any agency of its obligations under Section 33334.2, 33334.3, Article 9
(commencing with Section 33410), or any other requirements contained in this
part.
A redevelQpment plan adopted on or after October 1 .1976. and prior to
.Tanual'Y 1. 1994. containing the prQvisiQns set fQrth in SectiQn 33670. shall
alsQ cQntain:
A limitatiQn Qn the number Qf dollars Qf taxes that may be divided and
allQcated tQ the agency pursuant tQ the plan. including any amendments tQ
the plan. Taxes shall nQt be divided and shall nQt be allQcated tQ the agenc.y
beYQnd this IimitatiQn. except pursuant tQ amendment Qf the redevelQpment
plan.
A time limit. not exceed 12 years. fQr cQmmencement Qf eminent dQmain
prQceedings tQ aCqJ1ire prQperty within the pmiect area. This time limit may
be extended Qnly pursuant tQ amendment Qf the redevelQpment plan.
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The limitations of this section shall apply to every redevelopment plan adopted on or
before December31, 1993.
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The time limit on the establishing of loans, advances, and indebtedness
adopted pursuant to paragraph (2) of subdivision (a) of Section 33333.2 or
paragraph (2) of subdivision (a) of Section 3333.4 shall not exceed 20
years from the adoption of the redevelopment plan or January 1,2004,
whichever is later. This limit, however, shall not prevent agencies from
incurring debt to be paid from the Low and Moderate Income Housing
Fund or establishing more debt in order to fulfill the agency's housing
obligations under Section 33413. The limit shall not prevent agencies
from refinancing. refunding. or restructuring indebtedness after the
time limit if the indebtedness is not increa.~ed and the time during
which the indebtedness after the time limit if the indebtedness is not
increased and the time during which the indebtedness is to be repaid
does not exceed the date on which the indebtedness would have been
paid.
The time limitation established by this subdivision may be extended, only by
amendment of the redevelopment plan, after the agency fmds, based on
substantial evidence that: (A) significant blight remains within the project
area; and (B) this blight canoot be eliminated without the establislunent of
additional debt. However, this amended time limitation may not exceed 10
years from the time limit established pursuant to this subdivision or the time
limit on the effectiveness of the plan established pursuant to subdivision
(b), whichever is earlier.
The effectiveness of every redevelopment plan to which this section applies shall
tennmate at a date which shall not exceed 40 years from the adoption of the
redevelopment plan or January 1, 2009, whichever is later. After the time limit on
the effectiveness of the redevelopment plan, the agency shall have no authority to
act pursuant to the redevelopment plan or January 1,2009, whichever is later.
After the time limit on the effectiveness of the redevelopment plan, the agency
shall have no authority to act pursuant to the redevelopment plan except to pay
previously incurred indebtedness and to enforce existing covenants, contracts, or
other obligations.
Except as provided in subdivisions (g) and (h), a redevelopment agency shall not
pay indebtedness or receive property taxes pursuant to Section 33670 after 10
years from the tennmation of the effectiveness of the redevelopment plan pursuant
to subdivision (b).
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C)
If plans which had different dates of adoption were merged on or before
December 31, 1993, the time limitations required by this section shall be
counted individually for each merged plan from the date of the adoption of
each plan. If an amendment to a redevelopment plan added territory to the
project area on or before December 31, 1993, the time limitations required
by this section shall commence, with respect to the redevelopment plan,
from the date of the adoption of the redevelopment plan, and, with respect
to the added territory, from the date of the adoption of the amendment.
If plans that had different dates of adoption are merged on or after January
1, 1994, the time limitations required by this section shall be counted
individually for each merged plan from the date of the adoption of each
plan.
Unless a redevelopment plan adopted prior to January 1, 1994, contains all
of the limitations required by this section and each of these limitations does
not exceed the applicable time limits established by this section, the
legislative body, acting by ordinance on or before December 31,1994, shall
amend every redevelopment plan adopted prior to January 1, 1994, either
to amend an existing time limit that exceeds the applicable time limit
established by this section or to establish time limits that do not exceed the
provisions of subdivision (a),(b), or (c).
The limitations established in the ordinance adopted pursuant to this
section shall apply to the redevelopment plan as if the redevelopment plan
had been amended to include those limitations. However, in adopting the
ordinance required by this section, neither the legislative body not the
agency is required to comply with Article 12 (commencing with Section
33450) or any other provision of this part relating to the amendment of
redevelopment plans.
If a redevelopment plan adopted prior to January 1,1994, contains one or
more limitations required by this section, and the limitation does not exceed
the applicable time limit required by this section, this section shall not be
construed to require an amendment of this limitation.
A redevelopment plan adopted prior to January 1, 1994, that has a
limitation shorter than the terms provided in this section may be amended
to extend the limitation, within the applicable time limit established by this
section, pursuant to Section 33354.6. This amendment shall be subiect
to referendum as provided in Section 33450.
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(j) The Legislature fmds and declares that the amendments made to this section by the
act that adds this subdivision are intended to add limitations to the law on and after
January I, 1994, and are not intended to change or express legislative intent with
respect to the law prior to that date. It is not the intent of the Legislature to affect
the merits of any litigation regarding the ability of a redevelopment agency to sell
bonds for a term that exceeds the limit of a redevelopment plan pursuant to law
that existed prior to January 1, 1994.
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The limitations established in the ordinance adopted pursuant to this section shall
not be applied to limit allocation of taxes to an agency to the extent required to
eliminate project deficits created under subdivision (e) of Section 33320.5,
subdivision (g) of Section 33334.6, or subdivision (d) of Section 33487, in
accordance with the plan adopted pursuant thereto for the pwpose of eliminating
the deficits or to implement a replacement housing program pursuant to Section
33413. In the event of a conflict between these limitations and the obligations
under Section 33334.6 or to implement a replacement housing program pursuant
to Section 33413,the legislative body shall amend the ordinance adopted pursuant
to this section to modify the limitations to the extent necessary to permit
compliance with the plan adopted pursuant to and Moderate Income Housing
Fund in accordance with Section 33334.3 or to permit implementation of the
replacement housing program pursuant to Section 33413. The procedure for
amending the ordinance pursuant to this subdivision shall be the same as for
adopting the ordinance under subdivision (e).
This section shall not be construed to affect the validity of any bond, indebtedness,
or other obligation, including any mitigation agreement entered into pursuant to
Section
33401, authorized by the legislative body, or the agency pursuant to this part, prior
to January I, 1994, after the date identified in subdivision (c) or the date identified
in the redevelopment plan, whichever is earlier, except as provided in paragraph
(2) of subdivision (f) or in subdivision (h).
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The funds which are required by Section 33334.2 or 33334.6 to be used for the
pwposes of increasing and improving the community's supply of low and
moderate-income housing shall be held in a separate Low and Moderate Income
Housing Fund until used.
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Any interest eamed by the Low and Moderate Income Housing Fund and any
repayments or other income to the agency for loans, advances, or grants, of any
kind from the Low and Moderate Income Housing Fund, shall accrue to and be
deposited in, the fund and may only be used in the manner prescribed for the Low
and Moderate Income Housing Fund.
The monies in the Low and Moderate Income Housing Fund shall be used to
increase, improve, and preserve the supply oflow and moderate income housing
within the territorial jurisdiction of the agency.
It is the intent of the Legislature that the Low and Moderate Income Housing Fund
be used to the maximum extent possible to defray the costs of production,
improvement, and preservation oflow_ and moderate income housing and that the
amount of money spent for planning and general administrative activities
associated with the development, improvement, and preservation of that housing
not be disproportionate to the amount actually spent for the costs of production,
improvement, or preservation of that housing. The agency shall determine
annually that the planning and administrative expenses are necessary for the
production, improvement, or preservation of low and moderate-income housing.
(1)
Planning and general administrative costs which may be paid with monies
from the Low and Moderate Income Housing Fund are those expenses
incurred by the agency which are directly related to the programs and
activities authorized under subdivision (e) of Section 33334.2 and are
limited to the following:
(A)
Costs incurred for salaries, wages, and related costs of the agency's
staff or for services provided through interagency agreements, and
agreements with contractors, including usual indirect costs related
thereto.
(B)
Costs incurred by a nonprofit cOIporation which are not directly
attributable to a specific project.
(2)
Legal, architectural, and engineering costs and other salaries, wages, and
costs directly related to the planning and execution of a specific project
which are authorized under subdivision (e) of Section 33334.2 and which
are incurred by a nonprofit housing sponsor are not planning and
administrative costs for the purposes of this section, but are instead project
costs.
(f)
ill
The requirements of this subdivision apply to all new or substantially
rehabilitated housing units developed or otherwise assisted, with monies
from the Low and Moderate Income Housing Fund, pursuant to an
agreement approved by an agency on or after January 1, 1988. Except to
the extent a longer period of time may be required by other provisions of
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law, the agency shall require that housing units subject to this subdivision
shall remain available at affordable housing costs to persons and families of
low or moderate income and very low income households for the longest
feasible time, but for not less than the following periods of time, except as
provided in Section 33334.13:
.(A) Fifteen years for rental units. However, the agency may replace
rental units with equally affordable and comparable rental units in
another location within the community if (A) the replacement units
are available for occupancy prior to the displacement of any persons
and families oflow or moderate income residing in the units to be
replaced and (B) the comparable replacement units are not
developed with monies from the Low and Moderate Income
Housing Fund.
an Ten years for owner-occupied units. However, the agency may
pennit sales of owner-occupied units prior to the expiration of the
10-year period for a price in excess of that otherwise pennitted
under this subdivision pursuant to an adopted program which
protects the agency's investment of monies from the Low and
Moderate Income Housing Fund, including, but not limited to. an
equity sharing program which establishes a schedule of equity
sharing that pennits retention by the seller of a portion of those
excess proceeds based on the length of occupancy. The remainder
of the excess proceeds of the sale shall he allocated to the agency
and deposited in the Low and Moderate Income Housing Fund.
.(2) The agency shall require the recording in the office of dIe county recorder
of covenants of restrictions implementing this subdivision for each parcel or
unit of real property subject to this subdivision. Notwithstanding any other
provision of law, the covenants or restrictions shall run with the land and
shall be enforceable, against the original owner and successors in interest,
by the agency or the community.
(g) "Housing." as used in this section, includes residential hotels, as defmed in
subdivision
(k) of Section 37912. *The defmitions of "lower income households" and "very low
income households" in Sections 50079.5 *and 50105 *shall apply to this section.
"Longest feasible time," as used in this section, includes, but is not limited to,
unlimited duration.
(h) "Increasing, improving, and preserving the community's supply of low- and
moderate-income housing," as used in this section and in Section 33334.2, includes
the preservation of rental housing units assisted by federal, state, or local
govenunent on the condition that units remain affordable to low- and moderate-
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income households, including very low income households, for a specified period
of time, beyond the date the subsidies and use restrictions could be terminated and
the assisted housing units converted to market rate rentals. In preserving these
units the agency shall require the units remain affordable to persons and families of
low- and moderate-income and very low income households for the longest
feasible time. However, the agency may replace rental units with equally
affordable and comparable rental units in another location within the community if
(1) the replacement units in another location are available for occupancy prior to
the displacement of any persons and families of low or moderate income residing in
the units to be replaced and (2) the comparable replacement units are not
developed with monies from the Low and Moderate Income Housing Fund.
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Agencies that have more than one project are may satisfy the requirements of
Sections 33334.2 and 33334.6 and of this section by allocating, in any fIscal year,
less than 20 percent in one project area, if the difference between the amount
allocated and the 20 percent required, is instead allocated, in that same fIscal year,
to the Low and Moderate Income Housing Fund from tax increment revenues
from other project areas. Prior to allocating funds pursuant to this subdivision, the
agency shall make the fmding required by subdivision (g) of Section 33334.2.
7. SECTION 33334.12
(a)
(1)
Upon failure of the agency to expend or encumber excess surplus in the
Low and Moderate Income Housing Fund within one year from the date
the monies become excess surplus, as defined in paragraph (1) of
subdivision (g), the agency shall do either of the following:
(A) Disburse voluntarily its excess surplus to the county housing authority or to
another public agency exercising housing development powers within the
territorial jurisdiction of the agency in accordance with subdivision (b).
(B) Expend or encumber its excess surplus within two additional years.
(2) IT an agency, after three years has elapsed from the date that the monies
become excess surplus, has not expended or encombered its excess surplus,
the agency shall be subject to sanctions pursuant to subdivision (e), until
the agency has expended or encumbered its excess surplus plus an
additional amount, equal to 50 percent of the amount of the excess surplus
that remains at the end of the three-year period. The additional
expenditure shall not be from the agency's Low and Moderate Income
Housing Fund, but shall be used in a manner that meets all requirements for
expenditures from that fund.
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The housing authority or other public agency to which the money is transferred shall
utilize the monies for the purposes of, and subject to the same restrictions that are
applicable to, the redevelopment agency under this part, and for that purpose may exercise
all of the powers of a housing authority under Part 2 (commencing with Section 34200) to
an extent not inconsistent with these limitations.
Notwithstanding Section 34209 or any other provision oflaw, for the purpose of
accepting a transfer of, and using, monies pursuant to this section, the housing authority of
a county or other public agency may exercise its powers within the territorial jurisdiction
of a city redevelopment agency located in that county.
The amount of excess surplus that shall be transferred to the housing authority or other
public agency because of a failure of the redevelopment agency to expend or encumber
excess surplus within one year shall be the amount of the excess surplus that is not so
expended or encumbered. The housing authority or other public agency to which the
monies are transferred shall expend or encumber these monies for authorized purposes not
later than three years after the date these monies were transferred from the Low and
Moderate Income Housing Fund.
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Until a time when the agency has expended or encumbered excess surplus monies
pursuant to subdivision (a), the agency shall be prohibited from encumbering any
funds or expending any monies derived from any source, except that the agency
may encumber funds and expend monies to pay the following obligations, if any,
that were incurred by the agency prior to three years from the date the monies
became excess surplus:
(A) Bonds, notes, interim certificates, debentures, or other obligations issued
by an agency, whether funded, refunded, assumed, or otherwise, pursuant
to Article 5 (commencing with Section 33640).
(B) Loans or monies advanced to the agency, including, but not limited to,
loans from federal, state, or local agencies, or a private entity.
(C) Contractual obligations which, if breached, could subject the agency to
damages or other liabilities or remedies.
(0) Obligations incurred pursuant to Section 33445.
(E) Indebtedness incurred pursuant to Section 33334.2 or 33334.6
(F) Obligations incurred pursuant to Section 33401.
(G) An amount, to be expended for the operation and administration of the
agency, that may not exceed 75 percent of the amount spent for those
purposes in the preceding fiscal year.
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m This subdivision shall not be construed to prohibit the e~nditure of excess
surplus funds or other funds to meet the reqpirement in paragraph (2) of
subdivision (a) that the agency spend or encumber excess surplus fuuds. plus
an amount eqpal to 50 percent of excess surplus. prior to spending or
encumbering funds for any other purpose.
Nothing in this section shall be construed to limit any authority a redevelopment agency
may have under other provisions of this part to contract with a housing authority for
increasing or improving the community's supply of low- and moderate-income housing.
For purposes of this section:
(1)
"Excess surplus" means any unexpended and unencumbered amount in an agency's
Low and Moderate Income Housing Fund that exceeds the greater of one million
dollars ($1,000,000) or the aggregate amount deposited into the Low and
Moderate Income Housing Fund pursuant to Sections 33334.2 and 33334.6 during
the agency's preceding four fiscal years. The first fiscal year to be included in this
computation is the 1989-90 fiscal year, and the first date on which an excess
surplus may exist is July 1, 1994.
(2)
Monies shall be deemed encumbered if committed pursuant to a legally enforceable
contract or agreement for expenditure for purposes specified in Section 33334.2 or
33334.3.
(3)
(A) For purposes of determining whether an excess surplus exists, it is the
intent of the Legislature to give credit to agencies which convey land for
less than fair market value, on which low- and moderate-income housing is
built or is to be built if at least 49 percent of the units developed on the
land are available at affordable housing cost to lower income households
for at least the time specified in subdivision (e) of Section 33334.3, and
otherwise comply with all of the provisions of this division applicable to
expenditures of monies from a low-and moderate-income housing fund
established pursuant to Section 33334.3. Therefore, for the sole purpose
of determining the amount, if any , of an excess surplus, an agency may
make the following calculation: if an agency sells, leases, or grants land
acquired with monies from the Low and Moderate Income Housing Fund,
established pursuant to Section 33334.3, for an amount which is below fair
maIket value, and if at least 49 percent of the units constructed or
rehabilitated on the land are affordable to lower income households, as
defmed in Section 50079.5, the difference between the fair market value of
the land and the amount the agency receives may be subtracted from the
amOlmt of monies in an agency's Low and Moderate Income Housing
Fund.
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(B) IT taxes that otherwise would have been required to be deposited in the
Low and Moderate Income Housing Fund are used as security for bonds or
other indebtedness, the proceeds of the bonds or other indebtedness shall
not be counted in determining whether an excess surplus exists. Instead,
the calculation made pursuant to paragraph (1) shall be made as if the
bonds or other indebtedness had not been sold or incurred, and the agency
had deposited the taxes in the Low and Moderate Income Housing Fund in
accordance with Section 33334.3.
(C) Nothing in this subdivision shall be construed to restrict the authority of an
agency provided in any other provision of this part to expend funds from
the Low and Moderate Income Housing Fund.
Communities in which an agency has disbursed excess surplus funds pursuant to this
section shall not disapprove a low-or moderate-income housing project funded in whole or
in part by the excess surplus funds if the project is consistent with applicable building
codes and the land use designation specified in any element of the general plan as it existed
on the date the application was deemed complete. A local agency may require compliance
with local development standards and policies appropriate to and consistent with meeting
the quantified objectives relative to the development of housing, as required in housing
elements of the community pursuant to subdivision (b) of Section 65583 of the
Government Code.
Notwithstanding subdivision (a), any agency that has funds that become excess surplus on
July I, 1994, shall have, pursuant to subdivision (a), until January I, 1995, to decide to
transfer the fWlds to a housing authority or other public agency, or until January I, 1997,
to expend or encumber those funds, or face sanctions pursuant to subdivision (e).
8.
SECTION 33344.5
After receiving the report prepared pursuant to Section 33328, or after the time period for
preparation of that report has passed, a redevelopment agency, which includes a provision
for the division of taxes pursuant to Section 33670 in the redevelopment plan, shall
prepare and send to each affected taxing entity, as defmed in Section 33353.2, a
prelinlinary report which shall contain all of the following:
(a)
The reasons for the selection of the project area.
(b)
A description of the physical and economic conditions existing in the project area.
(c)
A description of the project area which is sufficiently detailed for a determination
as to whether the project area is predominantly urbanized. The description shall
include at least the following information, which shall be based upon the tenllS
described and defmed in section 33320.1:
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(1)
The total number of acres within the project area.
(2)
The total number of acres that is characterized by the condition described
in paragraph (4) of subdivision (a), of Section 33031.
(3)
The total number of acres that is an integral part of an area developed for
urban uses.
(4)
The percent of property within the project area that is predominantly
urbanized.
(5)
A map of the project area that identifies the property described in
paragraphs (2) and (3) and the property not developed for an urban use.
A preliminary assessment of the proposed method of fmancing the redevelopment
of the project area, including an assessment of the economic feasibility of the
project and the reasons for including a provision for the division of taxes pursuant
to Section 33670 in the plan.
(e) A description of the specific project or projects then proposed by the agency.
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A description of how the project or projects to be pursued by the agency in the
project area will improve or alleviate the conditions described in subdivision (b).
SECTION 33353.2
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"Affected taxing entity" means any governmental taxing agency, levied a property tax on
all or any portion of the property located in the proposed project area in the fiscal year
prior to the fiscal year in which the report prepared pursuant to Section 33328 is issued.
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SECTION 33413
Whenever dwelling units housing persons and families of low or moderate income
are destroyed or removed from the low-and moderate-income housing market as
part of a redevelopment project which is subject to a written agreement with the
agency or where fmancial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate, develop, or
cause to be rehabilitated, developed, or constructed, for rental or sale to persons
and families of low or moderate income, an equal number of replacement dwelling
units are destroyed or removed after September 1, 1989,75 percent of the
replacement dwelling units shall replace dwelling units available at affordable
housing cost in the same income level of very low income households, lower
income households, and persons and families of low and moderate income, as the
persons displaced from those destroyed or removed units.
173
To satisfy the provisions of this paragraph, in whole or in part, the agency may
cause, by regulation or agreement, to be available, at affordable housing costs, to
persons and families of low or moderate income or to very low income
households, as applicable, two units outside a project area for each unit that
otherwise would have had to be available inside a project area.
(ill) As used in this paragraph and in paragraph (1), "substantially rehabilitated dwelling
units" means substantially rehabilitated multifamily rented dwelling units with three
or more units or substantially rehabilitated, with agency assistance, single-family
dwelling units with one or two units.
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At least 30 percent of all new and substantially rehabilitated dwelling units
developed by an agency shall be available at affordable housing cost to
persons and families oflow or moderate income. Not less than 50 percent
of the dwelling units required to be available at affordable housing cost to
persons and families of low or moderate income shall be available at
affordable housing cost to, and occupied by, very low income households.
At least 15 percent of all new and substantially rehabilitated dwelling units
developed within a project area under the jurisdiction of an agency by
public or private entities or persons other than the agency shall be available
at affordable housing cost to persons and families of low or moderate
income. Not less than 40 percent of the dwelling units required to be
available at affordable housing cost to persons and families of low or
moderate income shall be available at affordable housing cost to very low
income households.
(iv) As used in this paragraph and in paragraph (1), "substantial rehabilitation" means
rehabilitation, the value of which constitutes 25 percent of the after rehabilitation
value of the dwelling, inclusive of the land value.
(v) To satisfy the provisions of this paragraph, the agency may aggregate new or
substantially rehabilitated dwelling units in one or more project areas, provided
that the agency rmds, based on substantial evidence, after a public hearing, that the
aggregation will not cause or exacerbate racial, ethnic, or economic segregation.
(B) To satisfy the requirements of paragraph (1) and subparagraph (A), the agency
may purchase, or otherwise acquire or cause by regulation or agreement the
purchase or other acquisition of, long-term affordability covenants on multifamily
units that restrict the cost of renting or purchasing those units that either: (i) are
not presently available at affordable housing cost to persons and families of low or
very low income households, as applicable; or (ii) are units that are presently
available at affordable housing cost to this same group of persons or families, but
are units that the agency fmds, based upon substantial evidence, after a public
hearing cannot reasonably be expected to remain affordable to this same group of
persons or families.
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To satisfy the requirements of paragraph (1) and subparagraph (A), the long-term
affordability covenants purchased or otherwise acquired pursuant to subparagraph
(B) shall be required to be maintained on dwelling units at affordable housing tlla1
for not less than 30 years. Not more than 50 percent of the units made available
pursuant to paragraph (1) and subparagraph (A) may be assisted through the
purchase or acquisition of long-term affordability covenants pursuant to
subparagraph (8), Not less than 50 percent or the units made available
through the purchase or aCCIJdsition or long-term affordability covenants
pursuant to subparagraph (8) shall be available at affordable housing cost
to. and occupied by. very low income households.
The requirements of this subdivision shall apply independently of the requirements
of subdivision (a). The requirements of this subdivision shall apply, in the
aggregate to housing made available pursuant to paragraphs (1) and (2),
respectively, and not to each individual case of rehabilitation, development, or
construction of dwelling units, unless an agency determines otherwise.
Each redevelopment agency, as part of the implementation plan required by
Section 33490, shall adopt a plan to comply with the requirements of this
subdivision for each project area. The plan shall be consistent with, and may be
included within, the community's housing element. The plan shall be reviewed and,
if necessary, amended at least every five years in conjunction with ~ the
housing element cycle or the plan implementation cycle. The plan shall ensure
that the requirements of this subdivision are met every 10 years. Requirements of
this subdivision are not met by the end of each 10-year period, the agency shall
meet these goals on an annual basis until the requirements for the lO-year period
are met. If the agency has exceeded the requirements within the 10-year period,
the agency may count the units that exceed the requirement in order to meet the
requirements during the next lO-year period. The plan shall contain the
contents reqpired by paragraphs (2) and (;3) or snbdivision (a) or Section
33490.
The agency shall require that the aggregate number of replacement dwelling units
and other dwelling units rehabilitated, developed, constructed, or price-restricted
pursuant to subdivision (a) or (b) remain available at affordable housing cost to
persons and families of low-income, moderate-income, and very low income
households, respectively, for the longest feasible time, as determined by the
agency, but for not less than the period of the land use controls established in the
redevelopment plan, except for the following:
(1)
A longer period of time may be required by other provisions of law.
(2)(A) The agency may pennit sales of owner-occupied units prior to the
expiration of the period of the land use controls established by tlle agency
for a price in excess of that otherwise pennitted under this subdivision
pursuant to an adopted program which protects the agency's investment of
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monies from the Low and Moderate Income Housing Fund, including, but
not limited to, an equity sharing program that establishes a schedule of
equity sharing that permits retention by the seller of a portion of those
excess proceeds, bases on the length of occupancy. The remainder of the
excess proceeds of the sale shall be allocated to the agency, and deposited
into the Low and Moderate Income Housing Fund. The agency shall,
within three years from the date of sale of units under this subparagraph,
expend funds to make affordable an equal number of units at the same
income level as units sold under this subparagraph.
(B) Ifland on which those dwelling units are located is deleted from the project
area, the agency shall continue to require that those units remain affordable
as specified in this subdivision. The requirements of this subdivision shall
be made enforceable in the same manner as provided in subdivision (f) of
Section 33334.3
(d)
This section applies only to redevelopment projects for which a final
redevelopment plan is adopted pursuant to Article 5 (conunencing with
Section 33360) on or after January I, 1976, and to areas which are added
to a project area by amendment to a final redevelopment plan adopted on
or after January 1, 1976. In addition, subdivision (a) shall apply to any
other redevelopment project with respect to dwelling units destroyed or
removed from the low- and moderate-income housing market on or after
January 1, 1976, irrespective of the date ofadoption of a fmal
redevelopment plan or an amendment to a fmal redevelopment plan adding
areas to a project area. Additionally, any agency may, be resolution, elect
to make all or part of the requirements of this section applicable to any
redevelopment project of the agency for which the fmal redevelopment plan
was adopted prior to January 1, 1976.
(1)
(2) An agency may, by resolution, elect to require that whenever dwelling units
housing persons or families of low or moderate income are destroyed or
removed from the low-and moderate-income housing market as part of a
redevelopment project, the agency shall replace each dwelling unit with up
to three replacement dwelling units pursuant to subdivision (a).
(e) Except as otherwise authorized by law, this section does not authorize an agency
to operate a rental housing development beyond the period reasonably necessary to
sell or lease the housing development.
(f) Notwithstanding subdivision (a), the agency may replace destroyed or removed
dwelling units with a fewer number of replacement dwelling units if the
replacement dwelling units meet both of the following criteria:
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(1)
The total number of bedrooms in the replacement dwelling units eqpals or
exceeds the number of bedrooms in the destroyed or removed units.
Destroyed or removed units having one or no bedroom are deemed for this
purpose to have one bedroom.
(2)
The replacement units are affordable to the same income level of
households as the destroyed or removed units.
"Longest feasible time," as used in this section, includes, but is not limited to,
unlimited duration.
This section shall remain in effect only until January 1, 1997, and as of that date is
repealed, unless a later enacted statue, which is enacted before January 1, 1997,
deletes or extends that date.
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Whenever dwelling units housing persons and families of low or moderate income
are destroyed or removed from the low- and moderate-income housing market as
part of a redevelopment project which is subject to a written agreement with the
agency or where fmancial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate, develop, or
construct, or cause to be rehabilitated, developed, or constructed, for rental or sale
to persons and families of low or moderate income, an equal number of
replacement dwelling units which have an equal or greater number of bedrooms as
those destroyed or removed units at affordable housing m within the territorial
jurisdiction of the agency. When dwelling units are destroyed or removed after
September 1, 1989,75 percent of the replacement dwelling units shall replace
dwelling units available at affordable housing cost in the same income level of very
low income households, lower income households, and persons and families oflow
and moderate income, as the persons displaced from those destroyed or removed
units.
(1)
At least 30 percent of all new or rehabilitated dwelling units developed by
an agency shall be available at affordable housing cost to persons and
families of low or moderate income. Not less than 50 percent of the
dwelling units required to be available at affordable housing cost to persons
and families of low or moderate income shall be available at affordable
housing cost to, and occupied by, very low income households.
At least 15 percent of all new or rehabilitated dwelling units developed within the
project area by public or private entities or persons other than the agency shall be
available at affordable housing cost to persons and families of low or moderate
income. Not less than 40 percent of the dwelling units required to be available at
affordable housing cost to persons and families of low or moderate income shall be
available at affordable housing cost to very low income households.
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The requirements of this subdivision shall apply independently of the requirements
of subdivision (a) and in the aggregate to housing made available pursuant to
paragraph (I) and (2), respectively, and not to each individual case of
rehabilitation, development, or construction of dwelling units.
Each redevelopment agency, as part of the implementation plan l1y Section
33490. shall adopt a plan to comply with the requirements of this subdivision for
each project area. The plan shall he consistent with, and may be included within,
the community's housing element. The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with mIw: the housing element
cycle or the plan implementation ~ycle. The plan shall ensure that the
requirements of this subdivision are met every 10 years. If the requirements of this
subdivision are not met by the end of each 10-year period, the agency shall meet
these goals on an annual basis until the requirements for the 10-year period are
met. If the agency has exceeded the requirements within the 10-year period, the
agency may count tlle units that exceed the requirement in order to meet the
requirements during the next 10-year period. The plan shall contain the
contents required b.,y paragr:qlh (2) and (3) of subdivision (8) of Section
33490.
The agency shall require that the aggregate number of replacement dwelling units
and other dwelling units rehabilitated, developed, or constructed pursuant to
subdivision (a) or (b) remain available at affordable housing cost to persons and
farnilies of low-income, moderate-income, and very low income households,
respectively, for the longest feasible time, as determined by the agency, but for not
less than the period of the land use controls established in the redevelopment plan,
except to the extent a longer period of time may be
required by other provisions of law. If land on which those dwelling units are
located is deleted from the project area, the agency shall continue to require that
those units remain affordable as specified in the previous sentence. These
requirements shall be made enforceable in the same manner as provided in
subdivision (e) of Section 33334.3.
(d)
This section applies only to redevelopment projects for which a final
redevelopment plan is adopted pursuant to Article 5 (commencing with
Section 33360) on or after January 1, 1976, and to areas which are added
to a project area by amendment to a final redevelopment plan adopted on
or after January 1, 1976. In addition, subdivision (a) shall apply to any
other redevelopment project with respect to dwelling units destroyed or
removed from the low- and moderate-income housing market on or after
January I, 1996, irrespective of the date of adoption of a fmal
redevelopment plan or an amendment to a fmal redevelopment plan adding
areas to a project area. Additionally, any agency may, by resolution, elect
to make all or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment plan
(I)
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iliL Any dwelling units constructed. rehabilitated. or acquired prior to .January
1. 1997. pursuant to provisions that were in effect at the time of the
construction. rehabilitation. or acquisition may continue to be counted to
meet the requirement~ oUhis section.
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was adopted prior to January 1, 1976.
An agency may, by resolution, elect to require that whenever dwelling units
housing person or families of low or moderate income are destroyed or removed
from the low- and moderate-income housing market as part of a redevelopment
project, the agency shall replace each dwelling unit with up to three replacement
dwelling units pursuant to subdivision (a).
Except as otherwise authorized by law, this section does not authorize an agency
to operate a rental housing development beyond the period reasonably necessary to
sell or lease the housing development.
Notwithstanding subdivision (a), the agency may replace destroyed or removed
dwelling units with a fewer number of replacement dwelling units if the
replacement dwelling units meet both of the following criteria:
The total number of bedrooms in the replacement dwelling units equal or exceed
the number of bedrooms in the destroyed or removed units. Destroyed or
removed units having one or no bedroom are deemed for this pwpose to have one
bedroom.
The replacement units are affordable to the same income level of households as
the destroyed or removed units.
"Longest feasible time," as used in this section, includes, but is not limited to,
unlimited duration.
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SECTION 33433
(1)
Except as provided in subdivision (c), before any property of the agency
acquired in whole or in part, directly or indirectly, with tax increment
monies is sold or leased for development pursuant to the redevelopment
plan, the sale or lease shall fIrst be approved by the legislative body by
resolution after public hearing. Notice of the time and place of the hearing
shall be published in a newspaper of general circulation in the community at
least once per week for at least two successive weeks, as specifIed in
Section 6066 of the Government Code, prior to the hearing.
(2)
The agency shall make available, for public inspection and copying at a cost
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not to exceed the cost of duplication, a report no later than the time of
publication of the first notice of the hearing mandated by this section. This
report shall contain both of the following:
(A)
A copy of the proposed sale or lease.
(B) A summary which describes and specifies all of the following:
(i) The cost of the agreement to the agency, including land acquisition
costs, clearance costs, relocation costs, the costs of any
improvements to be provided by the agency, plus the expected
interest on any loans or bonds to finance the agreements.
(ii) The estimated value of the interest to be conveyed or leased,
determined at the highest and best uses permitted under the plan.
(ill) The estimated value of the interest to be conveyed or leased,
determined at the use and with the conditions, covenants, and
development costs required by the sale or lease. The purchase price
present value of the lease payments which the lessor will be
required to make during the term of the lease.
H the sale price or total rental amount is less than the fair market
value of the interest to be conveyed or leased, determined at the
highest and best use consistent with the redevelopment plan, then
the agency shall provide as part of the summary an explanation of
the reasons for difference.
(iv) An explanation of why the sale or lease of the property will assist in
the elimination of blight, with reference to all supporting facts and
materials relied upon in making this explanation.
(v)
The report shall be made available to the public no later than the
time of publication of the first notice of the hearing mandated by
this section .
The resolution approving the lease or sale shall be adopted by a majority vote
unless the legislative body has provided by ordinance for a two-thirds vote for that
purpose and shall contain a finding that the sale or lease of the property will assist
in the elimination of blight or provide housing for low-or moderate-income
persons. and is consistent with the implementation plan adopted pursuant to
Section 33490. The resolution shall also contain one of the following:
The consideration is not less than the fair market value at its highest and best use
in accordance with the plan.
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The consideration is not less than the fair reuse value at the use and with the
covenants and conditions and development costs authorized by the sale or lease.
13. SECTION 33445
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Notwithstanding Section 33440, an agency may, with the consent of the legislative
body, pay all or a part of the value of the land for and the cost of the installation
and construction of any building, facility, structure, or other improvement which is
publicly owned either within or without the project area, if the legislative body
determines ilII of the following:
That the buildings, facilities, structures, or other improvements are of benefit to the
project area or the immediate neighborhood in which the project is located,
regardless of whether the improvement is within another project area, or in the
case of a project area in which substantially all of the land is publicly owned that
the improvement is of benefit to an adjacent project area of the agency.
That no other reasonable means of fmancing the buildings, facilities, structures, or
other improvements, are available to the community.
That the payment of funds for the acquisition of land or the cost of buildings,
facilities, structures, or other improvements will assist in the elimination of one or
more blighting conditions inside the project area or provide housing for low- or
moderate-income persons. and is consistent with the implementation plan
adopted pursuant to Section 33490.
The determinations by the agency and the local legislative body pursuant to
subdivision (a) shall be final and conclusive. For redevelopment plans, and
amendments to those plans which add territory to a project, adopted after October
1, 1976, acquisition of property and installation or construction of each facility
shall be provided for in the redevelopment plan. A redevelopment agency shall not
pay for the normal maintenance or operations of buildings, facilities, structures, or
other improvements which are publicly owned. Normal maintenance or operations
do not include the construction, expansion, addition to, or reconstruction of ,
buildings, facilities, structures, or other improvements which are publicly owned.
Normal maintenance or operations do not include the construction, expansion,
addition to, or reconstruction of, buildings, facilities, structures, or other
improvements which are publicly owned otherwise undertaken pursuant to this
section.
When the value of the land or the cost of the installation and construction of the
building, facility, structure, or other improvement, or both, has been, or will be,
paid or provided for initially by the community or other public corporation under
which it agrees to reimburse the community or other public corporation for all or
part of the value of the land or all or part of the cost of the building, facility,
structure, or other improvement, or both, by periodic payments over a period of
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years.
(d) The obligation of the agency under the contract shall constitute an indebtedness of
the agency for the purpose of carrying out the redevelopment project for the
project area, which indebtedness may be made payable out of taxes levied in the
project area and allocated to the agency under subdivision (b) of Section 33670, or
out of any other available funds.
(e) In a case where the land has been or will be acquired by, or the cost of the
installation and construction of the building, facility, structure or other
improvement has been paid by, a parking authority, joint powers entity, or other
public corporation to provide a building, facility, structure, or other improvement
which has been or will be leased to the community, the contract may be made with,
and the reimbursement may be made payable to, the community.
(f) With respect to the fmancing, acquisition, or construction of a transportation,
collection, and distribution system and related peripheral parlcing facilities, in a
county with a population of 4,000,000 persons or more, the agency shall, in order
to exercise the powers granted by this section, enter into an agreement with the
rapid transit district which includes the county, or a portion thereof, in which
agreement the rapid transit district shall be given all of the following
responsibilities:
(1) To participate with the other parties to the agreement to design, determine the
location and extent of the necessary rights-of-way for, and construct, the
transportation, collection, and distribution systems and related peripheral parking
structures and facilities.
(2) To operate and maintain the transportation, collection, and distribution systems
and related peripheral parking structures and facilities in accordance with the rapid
transit district's outstanding agreements and the agreement required by this
paragraph.
(g)
(1)
Notwithstanding any other authority granted in this section, and agency
shall not pay for, wither directly or indirectly, with tax increment funds the
construction or rehabilitation of a building that is, or that will be used as, a
city hall or county administration building.
(2) This subdivision shall not preclude an agency from making payments to construct,
rehabilitate, or replace a city hall if an agency does any of the following:
(A) Allocates tax increment funds for this purpose during the 1988-89 fiscal
year and each fiscal year thereafter in order to comply with federal and
state seismic safety and accessibility standards.
(B) Uses tax increment funds for the purpose of rehabilitating or replacing a
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city hall that was seriously damaged during an earthquake that was
declared by the President of the United States to be a natural disaster.
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Uses the proceeds of bonds, notes, certificates of participation, or other
indebtedness that was issued prior to January 1, 1994, for the purpose of
constructing or rehabilitating a city hall, as evidenced by documents
approved at the time of the issuance of the indebtedness.
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SECTION 33452
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Notice of 1IK hearing shall be published pursuant to Section 6063 *of the
Government Code prior to the date of hearing in a newspaper of general
circulation, printed and published in the community, or, if there is none, in a
newspaper selected by the agency. The notice of hearing shall include a legal
description of the boundaries of the project area by reference to the description
recorded with the county recorder pursuant to Section 33373 and of the
boundaries of the land proposed to be added to the project area, if any, and a
general statement of the purpose of the amendment.
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class mail. to the last known assessee of each parcel of land not owned by the
agency with 1IK boundaries referred to in subdivision (a), at his or her last
known address as shown on the last equalized assessment roll of the county; or
where a city assesses, levies, and collects its own taxes, as shown on the last
equalized assessment roll of the city; or to the owner of each parcel of land with
~ boundaries as the ownership is shown on the records of the county recorder
30 days prior to the date the notice is published, and to persons, fInns, or
corporations which have acquired property within ~ boundaries from the
agency, at his or her last known address as shown by the records of the agency.
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first-class mail. to all residents and businesses within the project area
designated in the redevelopment plan as proposed to be amended, at least 30 days
prior to the hearing.
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mailing address to all individuals and businesseo;. or to all occupants. are
obtained by the agency at a reasonable cost. The notice may be addresses to
"occupant.." If the agency acted in good faith to comply with the notice
reqJlirements of this subdivision. the failure of the agency to provide the
required notice to residents or businesses unknown to the agency or whose
addresses cannot be obtained at a reasonable cost. shall not. in and of itself.
invalidate an amendment to a redevelopment plan.
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to the governing body of each of the taxing agencies that levies taxes upon
aQy proper(y in the prQject area designated in the redevelopment plan as
pro-posed to be amended. Notices sent pursuant to this subdivision shall be
mailed by certified mail with return receipt requested.
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all- Adoption of an implementation plan shall not constitute an approval of
amc. specific program. proiect. or expenditure and shall not change
the need to obtain any required approval of a iij)ecific program.
project. or expenditure from the agency or communi(y. The adoption
of an implementation plan shall not constitute a project within the
meaning of Section 21000 of the Public Resources Code. However. the
inclusion of a specific program. potential proiect. or expenditure in an
implementation plan prepared pursuant to subdivision (c) of Section
33352 in coniunction with a redevelopment plan ado-ption shall not
eliminate analysis of those programs. potential proiects. and
eIqlenditures in the environmental impact report pr~ared pursuant
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On or before December 31, 1994, and each five years thereafter,
each agency that has adopted a redevelopment plan prior to
December 31, 1993, shall adopt, after a public hearing, an
implementation plan that shall contain the specific goals and
objectives of the agency for the project area, the specific programs.
including potential projects, and estimated expenditures
proposed to be made during the next five years, and an explanation
of how the goals and objectives, programs, and expenditures will
eliminate blight within the project area and implement the
requirements of Sections 33334.2, 33334.6, and 33413. Afkr
adoption of the implementation plan. the parts of the
implementation plan that address Sections 33334.2, 33334.4,
33334.6, and 33413 shall be adopted every five years either in
coni unction with the housing element c:ycIe or the
implementation plan ~ The agenc:y may amend the
implementation plan after conducting a puhlic hearing on the
proposed amendment. If an action attacking the adoption.
approval. or validi(y of a redevelQpment plan adopted prior to
.January 1. 1994. has been brought pursuant to Chapter 5
(commencing with Section 33500). the f"lI"st implementation
plan required pursuant to this section shall be adopted within
six months after a final judgment or order has been entered.
Subsequent implemtation plans reqpired pursuant to this
section shall be adopted pursuant to the terms of this section.
and as if the first implementation plan had been adopted on or
before December 31.1994.
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to subdivision (k) of Section 33352 to the e .
otherwise required. In add'" th' ~ent that It would be
. _I IOn. __e IDcIuslOn of program t .
proJects. and e!(penditures in . I . s. po entIal
eliminate review ursuant to an unP. eme?tatIo~ plan shall not
(Division 13 (cOl!mencing wit~~~~:~:~~I~ EnvIronment ~Jlality Act
Code). at the time of the lIpproval of the 00) of the P~bhc Resources
e!(penditure. to the extent that it would bProt~am: proJec~ or
___ _e 0._ erwlse requIred.
(2)(A) A po~ion of the implementation Ian sha
housIng responsibilities and shalconta' II add~ess the lIge?c:y
Sections 33334.2, 33334.4. and 33334 6 ID a section addressIDg
Income Housin F d . , " : the Low and Moderate
annl' . g un. and.lfsubdlVlslOn (b) of Section 33413
_..... les. a sectIon addressin -d -----
housi?g. The section addre~s~:;n: Le;;I::~ ~n: proiect area
HouslDg Fund shall contain: 0 erate Income
(0 The amount available in the Lo d M
and the estimated amounts which ~:nbe d ode~ate ~ncome Housing Fund
Income Housing Fund during each f th eposIted ID the Low and Moderate
__ 0 _e next five years.
(ii~ A housing program with estimates of the nu
prl.ce.restricted units to be assisted durin mber of new. rehabilitated. or
estImates of the expenditures f f g each of the five years and
H . ----- 0 moneJ rom the Lo d M d
ousmg Fund, during each of the five years. w an 0 erate Income
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~;;I~::,h':::::~:o:-:~~~e:~:h t~ubdivision (b) of Section 33413
housing shall contain: g e lIgency developed and prQject area
Estimates of the number of new. substa ' . .
restricted residential un'ts t b d ntIally rehablhtated or price-
I 0 e evelQ)ll:dorp h d ' .
more proiect areas. both over the life 0 urc lIse ~IthlD one or
10 years. f the plan and durlDg the next
~stimates of the number of unit~ of ver
IDc~me households required to be deveio 10w.l~w:. and moderate-
project areas in order to meet the r . ped wIthlD one or more
subdivision (b) of Section 33413 b ~~Irements ,of paragraph (2) of
during the next 10 years. . 0 over the hfe of the plan and
The number of units of ver low I
households which h d Y . ow-. and moderate-income
ave eveloped with'
which meet the requirements f ID one or more prQject areas
Section 33413. 0 paragraph (2) of subdivision (h) of
Estimates of the numb f
er 0 agency developed residential units which
185
UL Estimates of the number of agency developed unib for very low. low-.
and moderate-income households which will be developed by the
agency during the next five years to meet the requirement~ of
paragraph (1) of subdivision (b) of Section 33413.
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will be developed during the next five years. if allY. which will be
governed by paragraph (l) of subdivision (b) of Section 33413.
If the implementation plan contains a project that will result in the
destruction or removal of dwelling units that will have to be replaced
pursuant to subdivision (a) of Section 33413, the implementation plan shall
identify proposed locations suitable for those replacement dwelling units.
For a project area for which a redevelopment plan is adopted on or after
January 1, 1994, the implementation plan prepared pursuant to subdivision
(c) of section 33352 shall constitute the initial implementation plan and
thereafter the agency after a public hearing shall adopt an implementation
plan every five years commencing with the fifth year after the plan has been
adopted. Agencies may adopt implementation plans that include more than
one project area.
Every agency, at least once within the five-year term of the plan, shall
conduct a public hearing and hear testimony of all interested parties for the
purpose of reviewing the redevelopment plan and the corresponding
implementation plan for each redevelopment project within the jurisdiction
and evaluating the progress of the redevelopment project. The hearing
required by this subdivision shall take place no earlier than two years and
no later than three years after the adoption of the implementation plan. An
agency may hold one hearing for two or more project areas if those project
areas are included within the same implementation plan.
Notice of public hearings conducted pursuant to this section shall be
published pursuant to Section 6063 of the Government Code and posted in
at least four permanent places within the project area for a period of three
weeks. Publication and posting shall be completed not less than 10 days
prior to the date set for hearing.
16. SECTION 33607.5
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This section shall apply to each redevelopment project area that, pursuant
to a redevelopment plan which contains the provisions required by
Section 33670 is either: (A) adopted on or after January 1, 1994, including
later amendments to these redevelopment plans; or (B) adopted prior to
January 1, 1994 but amended, after January 1, 1994, to include new
territory. For plans amended after January 1, 1994, only the tax increments
from territory added by the amendment shall be subject to this section. All
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the amounts calculated pursuant to this section shall be calculated after the
amount required to be deposited in the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6 has
been deducted from the total amount of tax increment funds received by
the agency in the applicable fiscal year.
(2)
The payments made pursuant to this section shall be in addition to any
amounts the affected taxing entities receive pursuant to subdivision (a) of
Section 33670. The payments made pursuant to this section to the affected
taxing entities shall be allocated among the affected taxing entities in
proportion to the percentage share of property taxes each affected taxing
entity receives during the fiscal year the funds are allocated. The agency
shall reduce its payments pursuant to this section to an affected taxing
entity by any amount the agency has paid, directly or indirectly, pursuant to
Section 33445, 33445.5, 33445.6. 33446, or any other provision of law
other than this section for, or in connection with, a public facility owned or
leased by that affected taxing agency, except: (A) any amounts the agency
has paid directly or indirectly pursuant to an agreement with a taxing entity
adopted prior to January 1, 1994; or (B) any amounts that are wuelated to
the specific project area or amendment governed by this section.
(A) Of the total amount paid each year pursuant to this section to school
districts, 43.9 percent shall be considered to be property taxes for the
purposes of paragraph (1) of subdivision (h) of Section 42238 of the
Education Code, and 56.1 percent shall not be considered to be property
taxes for the purposes of that section and shall be available to be used for
educational facilities.
(B) Of the total amount paid each year pursuant to this section to community
college districts, 47.5 percent shall be considered to be property taxes for
the purposes of Section 84751 of the Education Code, and 52.5 percent
shall not be considered to be property taxes for the purposes of that section
and shall be available to be used for educational facilities.
(C) Of the total amount paid each year pursuant to this section to county
offices of education, 19.0 percent shall be considered to be property taxes
for the purposes of Section 2558 of the Education Code, and 81.0 percent
shall not be considered to be property taxes for the purposes of that section
and shall be available to be nsed for educational facilities.
(D) Of the total amount paid each year pursuant to this section for special
education, 19.0 percent shall be considered to be property taxes for the
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purposes of Section 56712 of the Education Code, and 81.0 percent shall
not be considered to be property taxes for the purposes of that section and
shall be available to be used fur. education facilities.
Local education agencies that use funds received pursuant to this section
for school facilities shall spend these funds at schools that are: (A) within
the project area, (B) attended by students from the project area, (C)
attended by students generated by projects that are assisted directly by the
redevelopment agency, or (D) determined by the governing board of a
local education agency to be of benefit to the project area.
Commencing with the first fiscal year in which the agency receives tax
increments and continuing through the last fiscal year in which the agency
receives tax increments, a redevelopment agency shall pay to the affected
taxing entities, other than the community which has adopted the
pnuect . an amount eqpal to 25 percent of the tax increments received
by the agenc;y after the amount required to be deposited in the Low
and Moderate Income Housing Fund has been deducted. In addition.
in any fiscal year in which the agency receives tax increments. the
community that has adopted the redevelo.pment prQject area may
elect receive. and the agency shaIl pay to it. an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted.
Commencing with the 11th fiscal year in which the agency receives tax
increments and continuing through the last fiscal year in which the agency
receives tax increments, a redevelopment agency shall pay to the affected
taxing entities, other than the community which has adopted the
project. in addition to the amounts paid pursuant to subdivision(b) and
after deducting the amount allocated to the Low and Moderate Income
Housing Fund, an amount equal to 21 percent of the portion of tax
increments received by the agency, which shall be calculated by applying
the tax rate against the amount assessed value by which the current year
assessed value exceeds the first adjusted base year assessed value. TIle first
adjusted base year assessed value is the assessed value of the project area
in the 10th fiscal year in which the agency receives tax increment revenues.
(d)
Commencing with the 31st fiscal year in which the agency receives tax
increments and continuing through the last fiscal year in which the agency
receives tax increments, a redevelopment agency shall pay to the affected
taxing entities, other than the community which has adopted the
proiect. in addition to the amounts paid pursuant to subdivisions (b) and
(c) and after deducting the amount allocated to the Low and Moderate
Income Housing Fund, an amount equal to 14 percent of the portion of tax
increments received by the agency, which shall be calculated by applying
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the tax rate against the amount of assessed value by which the current year
assessed value exceeds the second adjusted base year assessed value. The
second adjusted base year assessed value is the assessed value of the
project area in the 30th fiscal year in which the agency receives tax
increments.
(1)
Prior to incurring any loans, bonds, or other indebtedness, except loans or
advances from the community, the agency may subordinate to the loans,
bonds or other indebtedness the amount required to be paid to an affected
taxing entity by this section, provided that the affected taxing entity has
approved these subordinations pursuant to this subdivision.
(2)
At the time the agency requests an affected taxing entity to subordinate the
amount to be paid to it the agency shall provide the affected taxing entity
with substantial evidence that sufficient funds will be available to pay both
the debt service and the payments required by this section, when due.
(3)
Within 45 days after receipt of the agency's request, the affected taxing
entity shall approve or disapprove the request for subordination. An
affected taxing entity may disapprove a request for subordination only if it
finds, based upon substantial evidence, that the agency will not be able to
pay the debt payments and the amount required to be paid to the affected
taxing entity. 1f the affected taxing entity does not act within 45 days after
receipt of the agency's request, the request subordinate shall be deemed
approved and shall be fmal and conclusive.
(1)
The Legislature fmds and declares both of the following:
(A) The payments made pursuant to this section are necessary in order to
alleviate thefinancial burden and detriment that affected taxing entities may
incur as a result of the adoption of a redevelopment plan, and payments to
this section will benefit redevelopment project areas.
(B) The payments made pursuant to this section are the exclusive payments
that are required to be made by a redevelopment agency to affected taxing
entities during the term of a redevelopment plan.
(2) Notwithstanding any other provision of law, a redevelopment agency shall
not be required, either directly or indirectly, as a measure to mitigate a
significant environmental effect or as part of any settlement agreement or
judgment brought in any action to contest the validity of a redevelopment
plan pursuant to Section 33501, to make any other payments to affected
taxing entities, or to pay for public facilities that will be owned or leased to
an affected taxing entity.
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(g)
As used in this section, a "local education agency" is.. a school district, a
community college district, or a county office of education.
SECTION 33607.7
1bis section shall apply to a redevelopment plan amendment for any
redevelopment plans adopted prior to January I, 1994, that increases the limitation
on the number of dollars to be allocated to the redevelopment agency or the time
limit on the establishing of loans, advances, and indebtedness established pursuant
to paragraphs (1) and (2) of subdivision (a) of Section 33333.6, or that lengthens
the period during which the redevelopment plan is effective if the redevelopment
plan being amended contains the provisions required by subdivision (b) of Section
33670. However, this section shall not apply to those redevelopment plans add
new territory.
If a redevelopment agency adopts an amendment that is govemed by the
provisions of this section, it shall pay to each affected taxing entity either of the
following:
If an agreement exists that requires payments to the taxing entity, the amount
required to be paid by an agreement between the agency and an affected taxing
entity entered into prior to January I, 1994.
If an agreement does not exist, the amounts required pursuant to subdivisions (b),
(c), (d), and (e) of Section 33607.5, until termination of the redevelopment plan,
calculated against the amount of assessed value by which the current year assessed
value exceeds an adjusted base year assessed value. The amounts shall be
allocated between property taxes and educational facilities according to the
appropriate formula in paragraph (3) of subdivision (a) of Section 33607.5. In
determining the applicable amount under Section 33607.5, the first fiscal year shall
be the first year following the fiscal year in which the adjusted base year value is
determined.
The adjusted base year assessed value shall be the assessed.Iillw: of the project
area in the year in which the limitation being amended would have taken effect
without the amendment or, if more than one limitation is being amend,ed, the first
year in which one m: more of the limitations would have taken effect without the
amendment. The agency shall commence making these payments pursuant to the
terms of the agreement, if applicable, or, if an agreement does not exist, in the first
fiscal year following the fiscal year in which the adjusted base year value is
determined.
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SECTION 33676
Prior to the adoption by the legislative body of a redevelopment plan providing for
tax-increment fmancing pursuant to Section 33670, any affected taxing agency
may elect to be allocated, and every school district and community college district
shall be allocated, in addition to the portion of taxes allocated to the affected
taxing agency pursuant to subdivision (a) of Section 33670, all or any portion of
the tax revenues allocated to the agency pursuant to subdivision (b) of Section
33670 attributable to one or more of the following:
Increases in the rate of tax imposed for the benefit of the taxing agency which levy
occurs after the tax year in which the ordinance adopting the redevelopment plan
becomes effective.
If an agency pursuant to Section 33354.5 amends a redevelopment plan which
does not utilize tax increment financing to add tax increment financing, and
pursuant to subdivision (a) of Section 33670 uses the assessment roll last equalized
prior to the effective date of the ordinance originally adopting the redevelopment
plan, an affected taxing agency may elect to be allocated all or any portion of the
tax revenues allocated to the agency pursuant to subdivision (b) of Section 33670
which the affected taxing agency would receive if the agency were to use the
assessment roll last equalized prior to the effective date of the ordinance amending
the redevelopment plan to add tax increment fmancing.
(1)
Any local education agency that is a basic aid district or office at the time
the ordinance adopting a redevelopment plan is adopted and that receives
no state funding, other than that provided pursuant to Section 6 of Article
IX of the Califomia Constitution, pursuant to Section 2558, 42238, or
84750, as appropriate, of the Education Code, shall receive annually its
percentage share of the property taxes from the project area allocated
among all of the affected taxing entities during the fiscal year the funds are
allocated, increased by an amount equal to the lesser of the following:
(A) The percentage growth in assessed value that occurs throughout the
district, excluding the portion of the district within the redevelopment
project area.
(B) Eighty percent of the growth in assessed value that occurs within the
portion of the district within the redevelopment project area.
(2) Subparagraphs (A) and (B) of paragraph (1) shall not apply to a
redevelopment plan adopted by the legislative body of a community if both
of the following occur:
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(A) The median household income in the community in which the
redevelopment project area is located is less than 80 percent of the median
household income in the county in which the redevelopment project area is
located.
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(B) The preliminary plan for the redevelopment plan was adopted on or before
September I, 1993, and the redevelopment plan was adopted on or before
August 1, 1994.
(3) Any local education agency that is a basic aid district or office at the time
the ordinance amending a redevelopment plan is adopted pursuant to
Section 33607.7 and that receives no state funding, other than that
provided pursuant to Section 6 of Article IX of the California Constitution,
pursuant to Section 2558, 42238, or 84751. as appropriate, of the
Education Code, shall receive either of the following:
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(A) If an agreement exists that requires payments to the basic aid district, the
amount required to be paid by an agreement between the agency and the
basic aid district entered into prior to January I, 1994.
(B) If an agreement does not exist, the percentage share of the increase in
property taxes from the project area allocated among all of the affected
taxing entities during the fiscal year the funds in the project area are
allocated, derived from 80 percent of the growth in assessed value that
occurs within the portion of the district within the redevelopment project
area from the year in which the amendment takes effect pursuant to
subdivision (c) of Section 33607.7.
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The redevelopment agency shall subtract from any payments made
pursuant to this section the amount that a basic aid district receives
pursuant to Sections 33607.5 and 33607.7 for the purposes of either
paragraph (1) of subdivision (h) of Section 42238 of the Education Code
or either Section 2558 or Section 84751 of Education Code.
TIle governing body of any affected taxing agency, other than a school
district and a community college district, electing to receive allocation of
taxes pursuant to this section in addition to taxes allocated to it pursuant to
subdivision (a) of Section 33670 shall adopt a resolution to that effect and
transmit the same, prior to the adoption of the redevelopment plan, to (1)
the legislative body, (2) the agency, and (3) the official or officials
perforn1ing the functions of levying and collecting taxes for the affected
taxing agency.
Upon receipt by the officials of the resolution, allocation of taxes pursuant
to this section to the affected taxing agency which has elected to receive
the allocation pursuant to this section by the adoption of the resolution and
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allocation of taxes pursuant to this section to every school district and
community college district shall be made at the time or time allocations are
made pursuant to subdivision (a) of Section 33670.
(d) An affected taxing agency, at any time after the adoption of the resolution,
may elect not to receive all or any portion of the additional allocation of
taxes pursuant to this section by rescinding the resolution or by amending
the same, as the case may be, and giving notice thereof to the legislative
body, the agency, and the official or officials performing the functions of
levying and collecting taxes for the affected taxing agency. After receipt of
a notice by the official or officials that an affected taxing agency has elected
not to receive all or a portion of the additional allocation of taxes by
recession or amenthnent of the resolution, any allocation of taxes to the
affected taxing agency required to be made pursuant to this section shall
not thereafter be made but shall be allocated to the agency and the affected
taxing agency shall thereafter be allocated only the portion of taxes
provided for in subdivision (a) of Section 33670. After receipt of a notice
by the officials that an affected taxing agency has elected to receive
additional tax revenues attributable to only a portion of the increases in the
rate of tax, only that portion of the tax revenues shall thereafter be
allocated to the affected taxing agency in addition to the portion of taxes
allocated pursuant to subdivision (a) of Section 33670, and the remaining
portion there of shall be allocated to the agency.
(e) As used in this section, "affected taxing agency" means and includes every
public agency for the benefit of which a tax is levied upon property in the
project area, whether levied by the public agency or on its behalf by
another public agency.
(f) This section shall apply only to redevelopment projects for which a fmal
redevelopment plan is adopted pursuant to Article 5 (commencing with
Section 33360) of Chapter 4 on or after January I, 1977.
SECTION 38 OF CHAPTER 942 OF THE STATUTES OF 1993
The Legislature fmds and declares that the amenthnent of Section 33641 of the
Health and Safety Code, and the repeal of Section 7202.6 of the Revenue and
Taxation Code, as provided for in the Community Redevelopment Law Reform
Act of 1993, shall not be deemed or construed to invalidate, impair, or otherwise
affect the receipt of revenues by a redevelopment agency, alkr January I, 1994,
under an ordinance adopted by a redevelopment agency, prior to January 1.
1994. pursuant to either Section 33641 of the Health and Safety Code or
Section 7202.6 of the Revenue and Taxation Code. as they existed prior to
January I, 1994, which are necessarJ' to pay any of the following:
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pursuant to an enforceable agreement with an entity other than the
community that was entered into prior to January 1. 1994.
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33641 of the Health and Safety Code.
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Ql The issuance of bonds on which the principal and interest are payable from taxes
imposed by an ordinance adopted by a redevelopment agency pursuant to Section
7202.6 of the Revenue and Taxation Code prior to January 1, 1994, whether those
bonds are issued prior to or after January 1, 1994, provided that the issuance of
those bonds is pursuant to an enforceable agreement, effective prior to January 1,
1994, that contains a pledge of sales taxes or provisions for the use of sales taxes
for project fmancing pwposes.
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(b) The Legislature further fmds and declares that the amendment of Sections 33401
and 33676 of the Health and Safety Code, as provided for in the Community
Redevelopment Law Reform Act of 1993. shall not be deemed or construed to
invalidate, impair, or otherwise affect an agreement between a redevelopment
agency and an affected taxing entity, entered into pursuant to either of those
sections prior to January 1, 1994.
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The Legislature further fmds and declares that the amendments to Section 33031
of the Health and Safety Code, and specifically the addition of paragraph (5) to
Subdivision (b) of that section, as made by this measure, are not intended to, and
do not, expand the activities a community redevelopment agency may fInance
pursuant to the Community Redevelopment Law, (Part 24 (commencing with
Section 33000) of the Health and Safety Code).
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Section 21 of this act shall become operative on January I, 1995.
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This act is an urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of the Constitution
and shall go into immediate effect. The facts constituting the necessity are:
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with recent amendments to the Community Redevelopment Law, it is necessary
that this act take effect immediately.
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ADMINISTRATION OF THE IMPLEMENTATION PLAN
As outlined in Section I of this document, AB 1290 added a new section to the CRL which
requires agencies to produce Implementation Plans every five years. An agency can only
adopt an Implementation Plan after first holding a noticed pbnlic hearing. Notice of the
hearing must be posted in at least four locations in the project atea(s) for a period ofthree
(3) weeks at least ten days prior to the hearing. In additon, notice of the hearing must be
published once a week for three weeks in a newspaper of general circulation.
Between two and three years after adoption of an Implemention Plan, an agency must hold
a public hearing to review the redevelopment plan and the last Implementation Plan. This
hearing is required to be noticed in the same manner as the hearing on adoption of the
Implementation Plan is noticed, as described above. This requirement, intorduced by AB
1290, has, in effect, replaced the former requirement for biennial public hearings on each
redevelopment plan.
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