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HomeMy WebLinkAboutR33- Economic Development Agency i CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A.Marzullo SUBJECT: San Bernardino Redevelopment Project Area: Interim Executive Director Merged Area A – Request to set a joint public hearing of the Mayor and Common Council and the Community Development Commission of DATE: August 10,2010 the City of San Bernardino to consider the Draft Merged, Amended and Restated Redevelopment Plan and Program FIR(Central City North,Southeast Industrial Park,Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East m Areas Redevelopment Project e t of �_ Synopsis of Previous Commission/Council/Committee Action(s): On March 4, 2010, the Redevelopment Committee Members Johnson, Brinker and alternate Shorett unanimously voted to recommend that the Community Development Commission consider 1) approving the Preliminary Report for the Merged, Amended and Restated Redevelopment Plan and authorize its transmission to each affected taxing entity;and 2)refer the Draft Merged, Amended and Restated Redevelopment Plan ("Merged Plan") to the Planning Commission of the City of San Bernardino for its report and recommendation (Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City,Central City South and Central City East Redevelopment Project Areas–"Merged Area A") On April 19, 2010, the Community Development Commission of the City of San Bernardino adopted Resolution No. CDC/2010-21: 1) approving the Preliminary Report for the Merged Plan and authorizing its transmission to each affected taxing entity;and 2)referring the draft Merged Plan to the Planning Commission of the City of San Bernardino for its report and recommendation(Central City North, Southeast Industrial Park,Tri-City,South Valle,Meadowbrook/Central City,Central City South and Central City East Redevelopment Project Areas–"Merged Area A") On July 8, 2010, the Redevelopment Committee Members Johnson, Marquez and alternate Shorett unanimously voted to recommend that the Community Development Commission and the Mayor and Common Council set a joint public hearing date -to consider adoption of the Merged Plan and Program EIR for Merged Area A. Recommended Motion(s): (Community Development Commission) A: Resolution of the Community Development Commission of the City of San Bernardino adopting the Report to the Mayor and Common Council ("Report") and transmitting the Report and the draft Merged, Amended and Restated Redevelopment Plan for the proposed merger of the Central City North, Southeast Industrial Park, Tri-City, South Valle,Meadowbrook/Central City,Central City South and Central City East Redevelopment Project Areas("Merged Area A7). Recommended Motions Continued to next page: Contact Person(s): Mike Trout Phone: (909)663-1044 CCN,SEIP,TRI,SV,MCC,CCS and Project Area(s): CCE Ward(s): 1"and 3`" Supporting Data Attached: 0 Staff Report 0 Resolution(s)❑Agreement(s)/Contract(s) Funding Requirements: Amount: S 611,152 Source: Tax Increment Budget Authority: 2010-2011 Budget Signature: Fiscal Review: Emil A. . llo, xecutive Director Lori P. the erim Ad lstrat a Services Director Commission/Council Notes: yT " r A0/a_ a R 9 _ .2o Y6 --2BB aIJnJ,_ a— 4&–e P.U,m ,WOmm De CommiuionWDC 3010 1&105tlling KPH Ma*N.A R,y bCouncil SKdoo COMMISSION MEETING AGENDA Meeting Date: 08/166/2/222010 Agenda Item Number: P'J7 Economic Development Agency Staff Report Merged Area A—Setting Joint Public Hearing Merged Plan&Program EIR July 16,2010 ------------------------------------------------------------------------------------------------------------------------ Recommended Motions Continued: (Community Development Commission) B: Resolution of the Community Development Commission of the City of San Bernardino setting the joint public hearing date of October 4,2010 at 4:30 p.m. with the Mayor and Common Council of the City of San Bernardino to consider the Merged, Amended and Restated Redevelopment Plan for the proposed merger of the Central City North, Southeast Industrial Park Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East Redevelopment Project Areas ("Merged Area A") and Certification of the Program Environmental Impact Report for Merged Area A. (Mayor and Common Council) C: Resolution of the Mayor and Common Council of the City of San Bernardino receiving the Report to the Mayor and Common Council and the draft Merged,Amended and Restated Redevelopment Plan for the proposed merger of the Central City North, Southeast Industrial Park Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East Redevelopment Project Areas("Merged Area A"). D: Resolution of the Mayor and Common Council of the City of San Bernardino setting the joint public hearing date of October 4,2010 at 4:30 p.m. with the Community Development Commission of the City of San Bernardino to consider the Merged, Amended and Restated Redevelopment Plan for the proposed merger of the Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East Redevelopment Project Areas ("Merged Area A") and certification of the Program Environmental Impact Report for Merged Area A. PUSe asCmm De Commiasmn 10IM&1&105 in PH Malted AU RrydW Cowl SRdo COMMISSION MEETING AGENDA Meeting Date: 08/16/2010 Agenda Item Number: —433— ECONOMIC DEVELOPMENT AGENCY STAFF REPORT SETTING JOINT PUBLIC HEARING: MERGED AREA A— MERGED,AMENDED AND RESTATED REDEVELOPMENT PLAN AND PROGRAM ENVIRONMENTAL IMPACT REPORT I BACKGROUND: Central City North Redevelopment Project Area was adopted in 1973. Southeast Industrial Park was adopted in 1976. Tri-City was adopted in 1983. South Valle was adopted 1984. Meadowbrook was adopted in 1958. Central City was adopted in 1965. Central City South and Central City East were adopted in 1976. Each of these project areas have/had different dates for project expiration, incurring debt, eminent domain, receiving tax increment and paying debt.Additionally,each project area has different limits on the amount of tax increment that can be received and debt that can be accumulated. Collectively, the above mentioned redevelopment project areas shall be referred to as the Project Areas and/or Merged Area A(the"Project Areas"and/or"Merged Area A"). As a result, some project areas: (1) do not have sufficient tax increment to assist in financing projects; (2) can no longer incur debt resulting in the Agency's inability to partner with developers that need Agency financial assistance; and (3) are approaching or have approached the cap on tax increment that can be received to assist in needed projects. Merger of project areas is desirable if the merger results in substantial benefit to the public and if the merger contributes to the revitalization of blighted areas through increased economic vitality of those areas and through increased and improved housing opportunities in or near such areas. Merger of project areas allows the Redevelopment Agency of the City of San Bernardino(the "Agency")the flexibility to direct redevelopment funds to the areas, projects and programs most in need. Sections 33485 — 33489 of the California Community Redevelopment Law(the"CRL")deal with the financial merger of project areas. On August 3, 2009, the Community Development Commission of the City of San Bernardino(the "Commission") adopted Resolution No. CDC/2009-41 approving an agreement between the Agency and Rosenow Spevacek Group (the"RSG")for the preparation of merger and amendment documents. On August 3, 2009, the Commission adopted Resolution No. CDC/2009-42 approving an agreement with RBF Consulting (the "RBF") for the preparation of a Program Environmental Impact Report (the "Program Eau'). A Program EIR is required in order for the Agency to merge Project Areas. On April 19, 2010,the Commission adopted Resolution No. CDC/2010-21 wherein the Commission: (1) approved the Preliminary Report for the Merged, Amended and Restated Redevelopment Plan (the "Merged Plan") for the proposed Merged Area A; and (2) referred the Merged Plan to the Planning Commission of the City of San Bernardino (the "Planning Commission") for its report and recommendation concerning conformance to the General Plan of the City of San Bernardino(the"General Plan"). On June 23, 2010, the Planning Commission made a finding that the Merged Plan is in conformance with the General Plan. P NgenG Tomm De C mietloo\COC 20101061610 SmigIPH MCpai Area A UW Report to Co SKA COMMISSION MEETING AGENDA Meeting Date: 08/16/2010 Agenda Item Number: Via Economic Development Agency Staff Report Merged Area A—Setting Joint Public Hearing Merged Plan &Program EIR Page 2 CURRENT ISSUE: Since August 2009,RSG has been working with the Agency in the preparation of the required documents necessary for the proposed Merged Area A. Among those documents necessary for the merger is the Report to the Mayor and Common Council (the "Report"). Sections 33333.11 and 33352 of the CRL require that the Agency prepare and that the Commission adopt the Report no later than 45 days prior to the joint public hearing of the Commission and Mayor and Common Council of the City of San Bernardino (the "Common Council") on the Merged Plan for the proposed Merged Area A. Report to the Mayor and Common Council The primary purpose of the Report is to provide decision makers with comprehensive information concerning the Merged Plan. The Report contains the following sections: (1) Description of Remaining Blight; (2) Projects and Programs to Eliminate Blight; (3) Method of Financing; (4) Amended Implementation Plan; (5) Neighborhood Impact Report; (6) Description of Merged Area A Bonds; (7) Method of Relocation; (8) Analysis of Preliminary Plan; (9) Report and Recommendation of the Planning Commission; (10) Statement of Conformance with General Plan; (11)Environmental Documentation;(12)Report of the County Fiscal Officer; and(13)Taxing Agency, PAC, Residents and Community Organizations Consultations. ENVIRONMENTAL IMPACT: Pursuant to the California Environmental Quality Act (the "CEQA"), a Program EIR is required to determine the environmental impacts that may occur as a result of merging redevelopment project areas. RBF has prepared a Program EIR for the proposed Merged Area A to identify the possible significant environmental effects of the development that may be proposed within the Project Areas. RBF completed the Draft Program EIR and on June 1, 2010 released it for public review and comment. The 45 day review period ended on July 16,2010. FISCAL IMPACT: Account Budgeted Amount: $611,152. Balance as of: August 10,2010 Balance after approval of this item: $0.00 Without a Merged, Amended and Restated Redevelopment Plan and other amendments to the various Project Areas the Agency's ability to consummate new business deals and redevelop blighted properties will be greatly impacted. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the attached Resolutions. Emil A. Marzu terim Executive Director Pl pBsTo=DayCOmmimion X30108-1610 SmM AM Merpd Mm Am Report m Cmo SkE COMMISSION MEETING AGENDA Meeting Date: 08y/�16/2010 Agenda Item Number: "33 t RESOLUTION NO. �1 2 `' D 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ADOPTING THE REPORT TO 4 THE MAYOR AND COMMON COUNCIL ("REPORT") AND TRANSMITTING THE REPORT AND THE DRAFT MERGED, AMENDED 5 AND RESTATED REDEVELOPMENT PLAN FOR THE PROPOSED 6 MERGER OF THE CENTRAL CITY NORTH, SOUTHEAST INDUSTRIAL PARK TRI-CITY, SOUTH VALLE, MEADOWBROOK/CENTRAL CITY, 7 CENTRAL CITY SOUTH AND CENTRAL CITY EAST s REDEVELOPMENT PROJECT AREAS ("MERGED AREA A") 9 WHEREAS, the City of San Bernardino (the "City"), is a municipal corporation and a 10 charter City created and existing pursuant to the Constitution and laws of the State of 11 California; and 12 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the "Common Council") is the legislative body of the Redevelopment Agency of the City of San 13 Bernardino (the"Agency"); and _a WHEREAS, the Community Development Commission of the City of San Bernardino 15 (the"Commission") is the governing body of the Agency; and 16 WHEREAS, the Agency, is a public body, corporate and politic existing under the laws 17 of the State of California, Community Redevelopment Law, Health and Safety Code 33000 et 18 seq. (the "CRL"), and is charged with the mission of redeveloping blighted and underutilized 19 land; and 20 WHEREAS, the Agency has initiated the proposed adoption of various amendments and 21 a merger of the Central City North, Southeast Industrial Park, Tri-City, South Valle, 22 Meadowbrook/Central City, Central City South and Central City East Redevelopment Project 23 Areas (the "Merged Area A") in compliance with the CRL; and 24 WHEREAS, the Agency is required to prepare and submit a Merged, Amended and 25 Restated Redevelopment Plan (the"Merged Plan') for the proposed Merged Area A; and 1-'13 �I1e I � o -1- P::AinEUNUeYtbe.NerY1W.ItGIpAF1610 Mal"Am A-Pepm b CesrµCDC Mess A.be WHEREAS, in accordance with CRL Section 33352, the Agency has prepared its 2 Report to the Mayor and Common Council (the"Report") for the proposed Merged Area A; and 3 WHEREAS, in accordance with CRL Section 33333.11, the Commission shall adopt the 4 Report no later than forty-five (45) days prior to a joint public hearing on the Merged Plan for 5 the proposed Merged Area A. 6 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF 7 THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND 8 ORDER, AS FOLLOWS: Section 1. The recital paragraphs of this Resolution are true and correct. 9 Section 2. The Commission hereby approves its Report and transmits same 10 including the Merged Plan for the proposed Merged Area A to the Common Council. I Section 3. Copies of the Report and Merged Plan for the proposed Merged Area A 12 are on file with Secretary of the Agency. Section 4. The Resolution shall take effect from and after its date of adoption by this 14 Commission. 15 16 17 18 19 20 21 22 23 24 -2- s...��.nc....,.n..nRmI�ILU3010.L41F10 Maud Am A.M ,K 0 Cw CM Pae Ada RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ADOPTING THE REPORT TO 2 THE MAYOR AND COMMON COUNCIL ("REPORT-) AND 3 TRANSMITTING THE REPORT AND THE DRAFT MERGED, AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE PROPOSED 4 PARK, TRI-CITY,E SOUTH VALLE, M ADOWBROOK/CENTRAL CITY, 5 CENTRAL CITY SOUTH AND CENTRAL CITY EAST 6 REDEVELOPMENT PROJECT AREAS ("MERGED AREA A") 7 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 8 Community Development Commission of the City of San Bernardino at a meeting q thereof,held on the day of 2010,by the following vote to wit: ip Commission Members: Aves Nays Abstain Absent 11 MARQUEZ DESJARDINS — 12 BRINKER — 3 SHORETT — 14 _ KELLEY — 15 JOHNSON — 16 MC CAMMACK — 17 18 Secretary The foregoing resolution is hereby approved this day of 2010. 19 20 Patrick J. Moms, Chairperson 21 Community Development Commission of the City of San Bernardino 22 23 Approved as to Forth: 24 BY: Agency Couns i5 -3- . ._ . ..__.n__�..w�.nmMM.1410 MertM AmANepoA to founul4fIX'Pew A.dx 1 RESOLUTION NO. L 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO SETTING THE JOINT PUBLIC a HEARING DATE OF OCTOBER 4, 2010 AT 4:30 P.M. WITH THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO TO 5 CONSIDER THE MERGED, AMENDED AND RESTATED 6 REDEVELOPMENT PLAN FOR THE PROPOSED MERGER OF THE CENTRAL CITY NORTH, SOUTHEAST INDUSTRIAL PARK, TRI-CITY, 7 SOUTH VALLE, MEADOWBROOK/CENTRAL CITY, CENTRAL CITY SOUTH AND CENTRAL CITY EAST REDEVELOPMENT PROJECT 8 AREAS ("MERGED AREA A") AND CERTIFICATION OF THE 9 PROGRAM ENVIRONMENTAL IMPACT REPORT FOR MERGED AREA A 10 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the 11 "Common Council') have previously adopted and amended, by ordinance, individual 12 Redevelopment Plans for the Central City North, Southeast Industrial Park, Tri-City, South 13 Valle, Meadowbrook/Central City, Central City South and Central City East Redevelopment .a Project Areas (the "Redevelopment Plans") in accordance with the applicable provisions of the 15 State of California,Community Redevelopment Law,Health and Safety Code 33000 et seq. e 16 "CRU); and 17 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), 18 is a public body, corporate and politic existing under the laws of the CRL, and is charged with 19 the mission of redeveloping blighted and underutilized land; and 20 WHEREAS, the Community Development Commission of the City of San Bernardino 21 (the"Commission") is the governing body of the Agency; and 22 WHEREAS, conditions of blight still persist within the proposed Merged Area A which 23 blight, if not rectified, will continue to be a detriment to the Agency's ability to attract and/or 24 retain businesses, developers, investors, etc. to the proposed Merged Area A; and 25 WHEREAS, the Agency proposes to merge the Redevelopment Plans, of the proposed Merged Area A, into a single Merged, Amended and Restated Redevelopment Plan (the -1- P,y�q,bnfgn,nyybuYtvwhuimu11010`OB-1610 MaW Acv A-PH,Phn W EIR CW Mo B doc I "Merged Plan"); and 2 WHEREAS, the Agency has prepared a Merged Plan for the proposed Merged Area A 3 in accordance with the CRL; and 4 WHEREAS, the Agency has prepared a Program Environmental Impact Report (the 5 "Program EIR") in accordance with the California Environmental Quality Act (the "CEQA"); 6 and WHEREAS, the Redevelopment Committee of the City of San Bernardino (the 8 "Committee") has recommended that the Commission set a date for a joint public hearing, with 9 the Common Council, to consider approving and adopting the Merged Plan and certifying the Io Program EIR for the proposed Merged Area A; and WHEREAS, the Agency desires that the Commission and Common Council set a joint 11 public hearing date to consider approval and adoption of the Merged Plan and certification of 12 the Program EIR for the proposed Merged Area A. 13 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF to THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND 15 ORDER, AS FOLLOWS: 16 Section 1. The recital paragraphs of this Resolution are true and correct. 17 Section 2. The Commission hereby authorizes and consents to conducting a joint 18 public hearing with the Common Council on October 4, 2010, at the hour of 4:30 p.m., or as 19 soon thereafter as may be practicable, for the purpose of considering the adoption of the Merged 20 Plan for the proposed Merged Area A and certification of the Program EIR. The City Clerk, in 21 cooperation with the Agency Secretary, is hereby authorized and directed to give notice of the 22 joint public hearing as hereby ordered in the form and manner required by the CRL. 23 Section 3. Copies of the Merged Plan and Program EIR for the proposed Merged 24 Area A are on file with theSecretary of the Agency. 15 Section 4. The Resolution shall take effect from and after its date of adoption by this Commission. -2- P A1rn 1,R,..Iu1..1R oMiom@010-0A.I&10MaIrd Arc.A-PH.No.eWEIR.CIX Rn III- i I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO SETTING THE JOINT PUBLIC 2 HEARING DATE OF OCTOBER 4, 2010 AT 4:30 P.M. WITH THE MAYOR 3 AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO TO CONSIDER THE MERGED, AMENDED AND RESTATED 4 REDEVELOPMENT PLAN FOR THE PROPOSED MERGER OF THE CENTRAL CITY NORTH, SOUTHEAST INDUSTRIAL PARK, TRI-CITY, 5 SOUTH VALLE, MEADOWBROOK/CENTRAL CITY, CENTRAL CITY 6 SOUTH AND CENTRAL CITY EAST REDEVELOPMENT PROJECT AREAS ("MERGED AREA A") AND CERTIFICATION OF THE 7 PROGRAM ENVIRONMENTAL IMPACT REPORT FOR MERGED AREA A 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 9 Community Development Commission of the City of San Bernardino at a meeting 10 thereof, held on the day of , 2010,by the following vote to wit: u Commission Members: Ayes Nays Abstain Absent t2 MARQUEZ — 13 DESIARDINS — 14 BRINKER — 15 SHORETT — 16 KELLEY — 17 JOHNSON — 18 MC CAMMACK — 19 Secretary 20 The foregoing resolution is hereby approved this day of 12010. 21 22 Patrick J. Moms, Chairperson Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: '-5 By: Agency Coups -3- P;,ApnM"%RnolutMm'RmolmumlGIM08-16-IUMe e6A¢e A-PH.PonsWEIR,f RMBdm 1 RESOLUTION NO. 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO RECEIVING THE REPORT TO THE 4 MAYOR AND COMMON COUNCIL AND DRAFT MERGED, AMENDED AND RESTATED REDEVELOPMENT PLAN FOR THE PROPOSED 5 MERGER OF THE CENTRAL CITY NORTH, SOUTHEAST INDUSTRIAL 6 PARK, TRI-CITY, SOUTH VALLE, MEADOWBROOK/CENTRAL CITY, CENTRAL CITY SOUTH AND CENTRAL CITY EAST 7 REDEVELOPMENT PROJECT AREAS ("MERGED AREA A") 8 WHEREAS, the City of San Bernardino (the "City"), is a municipal corporation and a 9 charter City created and existing pursuant to the Constitution and laws of the State of 10 California; and 11 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the 12 "Common Council") is the legislative body of the Redevelopment Agency of the City of San 13 Bernardino (the "Agency"); and 4 WHEREAS, the Community Development Commission of the City of San Bernardino 15 (the"Commission') is the governing body of the Agency; and 16 WHEREAS, the Agency, is a public body, corporate and politic existing under the laws 17 of the State of California, Community Redevelopment Law, Health and Safety Code 33000 et 18 seq. (the "CRL"), and is charged with the mission of redeveloping blighted and underutilized 19 land; and WHEREAS, the Agency has initiated the proposed adoption of various amendments and 20 a merger of the Central City North, Southeast Industrial Park, Tri-City, South Valle, 21 Meadowbrook/Central City, Central City South and Central City East Redevelopment Project 22 Areas (the"Merged Area A") in compliance with the CRL; and 23 WHEREAS, the Agency is required to prepare and submit a Merged, Amended and 24 Restated Redevelopment Plan (the"Merged Plan") for We proposed Merged Area A; and 25 -1- V01=8-16-10 Merged Am A-Repon m C--L MCC g-C doe I WHEREAS, in accordance with the CRL Section 33352, the Agency has prepared its 2 Report to the Mayor and Common Council(the"Report") for the proposed Merged Area A. 3 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED 4 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 5 FOLLOWS: 6 Section 1. The recital paragraphs of this Resolution are true and correct. 7 Section 2. The Common Council does hereby receive the Report and Merged Plan 8 for the proposed Merged Area A. Section 3. The Resolution shall take effect upon its adoption and execution in the 9 to manner as required by the City Charter. 11 12 13 4 15 16 17 18 19 20 21 22 /// 23 24 25 .2- P:UgePNeWev4unnsUlcnWonl]OIPUB-1610 Meryl Aro A-Report b Count,MCC Pen C.COc I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO RECEIVING THE REPORT TO THE 2 MAYOR AND COMMON COUNCIL AND DRAFT MERGED, AMENDED 3 AND RESTATED REDEVELOPMENT PLAN FOR THE PROPOSED MERGER OF THE CENTRAL CITY NORTH, SOUTHEAST INDUSTRIAL 4 PARK, TRI-CITY, SOUTH VALLE, MEADOWBROOK/CENTRAL CITY, CENTRAL CITY SOUTH AND CENTRAL CITY EAST 5 REDEVELOPMENT PROJECT AREAS("MERGED AREA A") 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a meeting thereof, held 8 on the day of , 2010, by the following vote to wit: 9 Council Members: Ayes Nays Abstain Absent 10 MARQUEZ II DESJARDINS 12 BRINKER 13 SHORETT I KELLEY is JOHNSON 16 MC CAMMACK 17 Secretary 18 19 The foregoing resolution is hereby approved this day of 2010. 20 21 Patrick J. Morris, Mayor City of San Bernardino 22 Approved as t orm: 23 ` By: t ., 2a s . Penman, City Attorney 25 -3- P:UprMUView6ubroVlewlWione301PAP-1610 M"W Am A-Rry wCo il,MCC Pew CA 1 RESOLUTION NO. 2 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO SETTING THE JOINT PUBLIC HEARING 4 DATE OF OCTOBER 4, 2010 AT 4:30 P.M. WITH THE COMMUNITY 5 DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO TO CONSIDER THE MERGED, AMENDED AND RESTATED 6 REDEVELOPMENT PLAN FOR THE PROPOSED MERGER OF THE CENTRAL CITY NORTH, SOUTHEAST INDUSTRIAL PARK, TRI-CITY, 7 SOUTH VALLE, MEADOWBROOK/CENTRAL CITY, CENTRAL CITY 8 SOUTH AND CENTRAL CITY EAST REDEVELOPMENT PROJECT AREAS ("MERGED AREA A") AND CERTIFICATION OF THE q PROGRAM ENVIRONMENTAL IMPACT REPORT FOR MERGED AREA A 10 11 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the 12 "Common Council") have previously adopted and amended, by ordinance, individual 13 Redevelopment Plans for the Central City North, Southeast Industrial Park, Tri-City, South 4 Valle, Meadowbrook/Central City, Central City South and Central City East Redevelopment 15 Project Areas (the "Redevelopment Plans") in accordance with the applicable provisions of the 16 State of California Community Redevelopment Law, Health and Safety Code 33000 et seq. (the 17 "CRL"); and 18 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), 19 is a public body, corporate and politic existing under the laws of the CRL, and is charged with 20 the mission of redeveloping blighted and underutilized land; and 21 WHEREAS, the Community Development Commission of the City of San Bernardino 22 (the"Commission") is the governing body of the Agency; and 23 WHEREAS, conditions of blight still persist within the proposed Merged Area A which 24 blight, if not rectified, will continue to be a detriment to the Agency's ability to attract and/or retain businesses, developers, investors, etc. to the proposed Merged Area A; and 25 -1- P:U�ebuVtuolNOU1RmW11oWP101pL1610 Mar dA.0 A-PH,Phu W 61A.MCC Hew H.dM I WHEREAS, the Agency proposes to merge the Redevelopment Plans, of the proposed Merged Area A, into a single Merged, Amended and Restated Redevelopment Plan (the 3 "Merged Plan"); and 4 WHEREAS, the Agency has prepared a Merged Plan for the proposed Merged Area A 5 in accordance with the CRL; and 6 WHEREAS, the Agency has prepared a Program Environmental Impact Report (the 7 "Program EIR") in accordance with California Environmental Quality Act (the"CEQA"); and 6 WHEREAS, the Redevelopment Committee of the City of San Bernardino (the 9 "Committee") has recommended that the Common Council set a date for a joint public hearing, with the Commission, to consider approving and adopting the Merged Plan and certifying the 10 Program EIR for the proposed Merged Area A; and 11 WHEREAS, the Agency desires that the Common Council and Commission set a joint 12 public hearing date to consider approval and adoption of the Merged Plan and certification of 13 the Program EIR for the proposed Merged Area A. NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED 15 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 16 FOLLOWS: 17 Section 1. The recital paragraphs of this Resolution are true and correct. 18 Section 2. The Common Council hereby authorizes and consents to conducting a 19 joint public hearing with the Commission on October 4, 2010 at the hour of 4:30 p.m., or as 20 soon thereafter as may be practicable, for the purpose of considering the adoption of the Merged 21 Plan for the proposed Merged Area A and certification of the Program EIR. The City Clerk, in 22 cooperation with the Agency Secretary, is hereby authorized and directed to give notice of the 23 joint public hearing as hereby ordered in the form and manner required by the CRL. 24 Section 3. Copies of the Merged Plan and Program EIR for the proposed Merged 25 Area A are on file with Secretary of the Agency. -2- P:Uyeaa\HroNlbuHlaoW We.�IYIUOLIf-10 maps Am A-PH,Mm and MR,MCC Nano U.au 1 Section 4. This Resolution shall take effect upon its adoption and execution in the 2 manner as required by the City Charter. 3 4 6 7 8 9 10 11 12 13 3 15 16 11 18 19 20 21 22 23 /!! 24 25 !/! .3. P:U{eoEUVtuoluYewWaolulbo�I l010W&1410 Ma{ AMA-PH.Ma ud HIP,MCC Pw DAM REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO INTER-OFFICE MEMORANDUM TO: Mayor Morris (2), City Council (8), City Attorney (2), City Manager (2), City Clerk (2), and Community Development (1) FROM: Don Gee, Deputy Director SUBJECT: Agenda backup material for August 16, 2010 Mayor and Common Council and Community Development Commission Meeting — Setting Date for Joint Public Hearing Draft Merged, Amended and Restated Redevelopment Plan for San Bernardino Merged Project Areas and Report to the Mayor and Common Council (Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East) - Merged Area A DATE: August 2, 2010 COPIES: File This binder serves as the backup materials for an item on the August 16, 2010 meeting of the Mayor and Common Council and the Community Development Commission of the City of San Bernardino. This binder includes a draft Merged, Amended and Restated Redevelopment Plan for the proposed merger of Redevelopment Project Areas — Merged Area A and the Agency Report to the Mayor and Common Council. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO INTER-OFFICE MEMORANDUM TO: Mayor Morris (2), City Council (8), City Attorney (2), City Manager (2), City Clerk (2), and Community Development (1) FROM: Don Gee, Deputy Director SUBJECT: Agenda backup material for August 16, 2010 Mayor and Common Council and Community Development Commission Meeting — Setting Date for Joint Public Hearing Draft Merged, Amended and Restated Redevelopment Plan for San Bernardino Merged Project Areas and Report to the Mayor and Common Council (Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East) - Merged Area A DATE: August 11, 2010 COPIES: File On August 2, 2010, a white binder was provided that served as the backup materials for an item on the August 16, 2010 meeting of the Mayor and Common Council and the Community Development Commission of the City of San Bernardino. That binder included a draft Merged, Amended and Restated Redevelopment Plan for the proposed merger of Redevelopment Project Areas — Merged Area A and the Agency Report to the Mayor and Common Council. Since then a couple of changes were made to each of the documents. Included with this memo are the new pages that need to be exchanged with the pages that are currently in the white binder. For the draft Merged, Amended and Restated Redevelopment Plan the changes were made to the Title Page, pages 3, 27 and 61. For the Agency Report to the Mayor and Common Council the changes were made to pages 3, 117 and 118. All other items of both documents remain unchanged. On the Agency Report to Mayor and Common Council for the previously provided page 118, page 119 (map) was omitted. Attached is the new page 118/119. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO INTER-OFFICE MEMORANDUM TO: Mayor Morris (2), City Council (8), City Attorney (2), City Manager (2), City Clerk (2), and Community Development (1) FROM: Don Gee, Deputy Director SUBJECT: Agenda backup material for August 16, 2010 Mayor and Common Council and Community Development Commission Meeting — Setting Date for Joint Public Hearing Draft Merged, Amended and Restated Redevelopment Plan for San Bernardino Merged Project Areas and Report to the Mayor and Common Council (Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East) - Merged Area A DATE: August 11, 2010 COPIES: File On August 2, 2010, a white binder was provided that served as the backup materials for an item on the August 16, 2010 meeting of the Mayor and Common Council and the Community Development Commission of the City of San Bernardino. That binder included a draft Merged, Amended and Restated Redevelopment Plan for the proposed merger of Redevelopment Project Areas — Merged Area A and the Agency Report to the Mayor and Common Council. Since then a couple of changes were made to each of the documents. Included with this memo are the new pages that need to be exchanged with the pages that are currently in the white binder. For the draft Merged, Amended and Restated Redevelopment Plan the changes were made to the Title Page, pages 3, 27 and 61. For the Agency Report to the Mayor and Common Council the changes were made to pages 3, 117 and 118. All other items of both documents remain unchanged. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 201 NORTH 'E'STREET,SUITE 300,SAN BERNARDINO,CA MERGED, AMENDED AND RESTATED REDEVELOPMENT PLAN FOR SAN BERNARDINO MERGED REDEVELOPMENT PROJECT AREAS (Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City South and Central City East) — Merged Area A REPORT TO THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO - Merged Area A August 16, 2010 REDEVELOPMENI AGENCY OF THE CITY OF SAN BERNARDINO 201 NORTH "E"STREET, SUITE 301, SAN BERNARDINO, CA MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN FOR THE SAN BERNARDINO MERGED REDEVELOPMENT PROJECT AREA A Redevelopment Agency of the City of San Bernardino October 4, 2010 Adopted: Effective: Ordinance No: ROSENOW SPEVACEK GROUP, INC www.webrsg.com 1 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN O TABLE OF CONTENTS SECTION I. (100) INTRODUCTION ............................................................................1 SECTION 11. (200) GENERAL DEFINITIONS .............................................................4 SECTION III. (300) MERGED AREA A BOUNDARIES ...............................................6 SECTION IV. (400) REDEVELOPMENT PLAN GOALS ..............................................6 SECTION V. (500) REDEVELOPMENT ACTIONS.......................................................7 SECTION VI. (600) USES PERMITTED IN THE MERGED AREA A...........................21 SECTION VII. (700) METHODS FOR FINANCING THE PROJECT.............................25 SECTION VIII. (800) ACTIONS BY THE CITY............................................................28 SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT ................................29 SECTION X. (1000) PLAN LIMITATIONS ................................................................29 SECTION XI. (1100) PROCEDURE FOR AMENDMENT ..........................................31 EXHIBIT A- MAP OF THE SAN BERNARDINO MERGED REDEVELOPMENT PROJECT AREA A....32 EXHIBIT B- MERGED AREA A LEGAL DESCRIPTIONS .................................................................33 EXHIBIT C- PROJECTLIST...........................................................................................................59 EXHIBIT D- MAP OF REMAINING BLIGHT IN THE 10-YEAR EXTENSION AREAS..........................61 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED.,AND RESTATED REDEVELOPMENT PLAN SECTION I. (100) INTRODUCTION This is the Merged, Amended, and Restated Redevelopment Plan for the San Bernardino Merged Redevelopment Project Area A ("Merged Plan") and represents the following amendments to the following Redevelopment Plans: • Amendment No 7 to the Meadowbrook/Central City Project Area • Amendment No. 8 to the Redevelopment Plan for the Central City North Project Area • Amendment No. 7 to the Redevelopment Plan for the Central City South Project Area • Amendment No. 7 to the Redevelopment Plan for the Central City East Project Area • Amendment No. 7 to the Redevelopment Plan for the Southeast Industrial Park Project Area • Amendment No. 5 to the Redevelopment Plan for the Tri-City Project Area • Amendment No. 5 to the Redevelopment Plan for the South Valle Project Area The following table delineates the adoption and amendment history for all of the above-mentioned redevelopment plans: Redevelopment Plan for the MeadowbrooldCenbral City Redevelopment Project Area . Ordinance Adoption Description No. Date Redevelopment Plan for the Meadowbrook Redevelopment Project Area No.1 is adopted. 2233 7/21/1958 Redevelopment Plan for the Central City Redevelopment Project Area No. 1 is adopted. 2649 2/23/1965 Redevelopment Plan for Meadowbrook Redevelopment Project Area No. 1 is amended to amend section 4 of Ordinance 2233 approdng and adopting ravisions,dated 9/311968 to the Redevelopment Plan for the Meadowbrook Project Area No. 1. 2953 _10/22/1968 Redevelopment Plan for Central City Redevelopment Project Area is amended to amend section 4 of Ordinance No. 2649 appmdng and adopting a mv/slon to the Redevelopment Plan for the Central City Pmject Area No. 1. 3059 311611970 Redevelopment Plans for Meadowbrook and Central City Redevelopment Project Areas merged for financial 3683 11/9/1977 purposes(now known as Redevelopment Plan for the Central City Redevelopment Project Area) Amendment No.1:Establish time and financial limits,including 1)aminent domain for 12 yr.period;2)time MC-558 ! 17/9/1986 limit to establish indebtedness;3)bonded debt limit;and 4)tax increment limit. MC-559 Amendment No.2:Amend tax increment limit calculation. MC-723 - 4/2/1990 Amendment No.3:Establish plan effectiveness,tax increment collection, repayment of indebtedness limits. _ MC-917 12119/1994 Amendment No.4:2001 Eminent Domain Amendment;ra-instate eminent domain authority MC-1113 12/17/2001 Amendment No.5: Extend plan effectiveness,tax increment collection,and repayment of indebtedness time MC-1207 6/20/2005 limits by one year per CRL. Amendment No.6:Extend plan effectiveness and repa ment of indebtedness time limits by 2 years per CRL. MC-1300 4120/2009 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN 7entPj lopment Plan for the Central City North Redevelopment Protect Area finance Adoption Description No. Dale lopment Plan for Cenral City North is adopted 3366 8/6/1973 ment No. 1: Establish time and financial limits,inclutling 1)eminent domain for 12 yr.period;2)time ! MC561 12/9/1986 establish indebtedness;3)bonded debt limit;antl 4)tax increment limit.ent No.2:Amend tax increment limit calculation. MC-719 412/1900 ent No.3:Establish plan efectiveness,tax increment collection,repayment of indebtedness limits. MC-920 12/19/1994 ent No.4: Eliminate time limit to incur indebtedness. MC-1154 12/1/2003 eM No.5: Adopt Amentletl 8 Restated Plan with modem language antl reinstate eminent domain MC-1182 9/7/2004 ty.ent No.6: Extend plan effectiveness,tax increment collection,and repayment of indebtedness time MC-1199 6/20/2005 mts y one year per CRL. Amendment No.7: Extend plan effectieness and repayment of indebtedness time limits by 2 years per CRL MC-1294 4120/2009 Redevelopment Plan for the Central City South Redevelopment Pro ect Area Ordinance Adoption Descnphon No. Date Redevelopment Plan for Central City South is adopted 3572 SW976 Amendment No. 1: Establish time and financial limits, including 1)eminent domain toy 12 yr.period;2)time MC-564 1219/1986 limit to establish indebtedness;3)bonded debt limit;and 4)tax increment limit. Amendment No.2:Amend tax increment limit calculation. MC-724 412/1990 Amendment No.3: Establish plan effectiveness,tax increment collection,repayment of indebtedness limits. MC-919 12/19/1994 Amendment No.4: 2001 Eminent Domain Amendment MC-1104 9/1712001 Amendment No.5: Extend plan effectiveness,tax increment collection,and repayment of indebtedness time MC-1208 6/20/2005 limits by one year per CRL. Amendment No.6: Extend plan effectiveness and repayment of indebtedness time limits by 2 years per CRL. MC-1301 4/20/2009 ]Redevelopment Plan for the Central City Past Redevelopment Pro ect Area Ordinance Adoption Description NO Date Redevelopment Plan for Central City East is adopted 3571 513/1976 Amendment No 1: Establish time and financial limits, including 1)eminent domain for 12 yr.period;2)time MC-563 121911986 limit to establish indebtedness;3)bonded debt limit;and 4)lax increment limit. j Amendment No.2:Amend tax increment limit calculation. MC-721 4/211990 Amendment No.3:Establish plan effectiveness,tax increment collection,repayment of indebtedness limits. MC-918 12/1911994 Amendment No.4: 2001 Eminent Domain Amendment. MG1112 12/3/2001 Amendment No.5:Extend plan effectiveness.tax increment collection,and repayment of indebtedness time MC-1209 6/20/2005 limits by one year per CRL. ! Amendment No.6:Extend plan effectiveness and repayment of indebtedness time limits by 2 years per CRL. MC-1302 4/20/2009 Redevelopment Plan for the Southeast Industrial Park Redevelopment Project Area Ordinance Adoption Description NO Date Redevelopment Plan fo'S utheast Industrial Park is adopted 3583 6/21/1976 Amendment No. 1:Establish time and financial limits, including 1)eminent domain for 12 yr.period;2)time MG565 12/9/1986 limit to establish indebtedness;3)bonded debt limit;and 4)tax increment limit. Amendment No.2:Amend tax increment limit calculation. MC-722 412/1990 Amendment No.3:Establish plan effectiveness,tax increment collection,repayment of indebtedness limits. MC-924 12/19/1994 Amendment No.4: Eliminate debt establishment time limit. MG1156 12/112003 Amendment W.5:Extend plan effectiveness,tax increment collection,and repayment of indebtedness time MG7201 6/20/2005 limits by one year per CRL. Amendment No.6:Extend plan effectiveness and repayment of indebtedness time limits by 2 years per CRL. MC-1296 4120/2009 O 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN Redevelopment Plan forth Tri-Oly Redevelopment Project Area Ordinance Adopton Description No Date Redevelopment Plan for Tb-CRY is adopted. MC-283 6/20/1983 e _m _ _ _. Amendment No. 1:Establish time and financial IImBS,including 1)time limit to establish indebtedness; MC-928 1Z1911984 2)time limit to pay indebtedness/collect tax increment. _t time 2622__ 6622_ 6662_._._ 62 26.6222._ _....... Amendment No 2 Eliminate tleM establishment bme limit MC 1758 121/2003 .. 2 em coon,' 612...-- Amendment No.3:Extend plan e8ecti�eness,tax increment collection,and repayment of mtlebtedrless time MG1203 612012005 limits by one year per CRL. Amendment No.4:Extend plan effectiveness and repayment of indebtedness time limits by 2 yeas per CRL. MC-1298 4120/2009 Redevelopment Plan for the South Valle Redevelopment Project Area Ordnance Adoption Description No. Date Redevelopment Plan for South Valle is adopted. MG387 719/1984 '_. 2 ding. -2 _.6222.. 2222 Amendment No. 1:Establish time e a and financial limits,including 1)time me limit limit to establish indebtedness; MC-923 12119/1994 2)time limit to pay indebtedness/collect lax increment. Amendment No 2 Eliminate debt establishment time limn MC-1159 721/2003 Amendment No 3:Extend plan effectiveness,lax increment collection,and repayment M indebtedness time MC 1204 I &2W2005 limits by one year per CRL. Amendment No 4:Extend plan effectiveness and repayment of indebtedness time limits by 2 years per CRL MC 1299 4120/2009 This Merged Plan also incorporates all previous amendments listed in the above table. The San Bernardino Merged Redevelopment Project Area A ("Merged Area A") is located in the City of San Bernardino, County of San Bernardino, State of California. The Merged Plan consists of the text (Sections 100 through 1100), the Map of Merged Area A (Exhibit A), the legal description of the Merged Area A boundaries (Exhibit B), a list of the proposed projects, programs, public facilities, and infrastructure improvement projects that may be undertaken by the Agency in Merged Area A (Exhibit C), and the map of remaining blight in Merged Area A(Exhibit D). The Redevelopment Agency of the City of San Bernardino ("Agency") is proposing the San Bernardino Redevelopment Project A Merger and Amendment ("Merger and Amendments") which would merge and amend the Redevelopment Plans for the Meadowbrook/Central City, Central City North, Central City South, Central City East, Southeast Industrial Park, Tri-City and South Valle Redevelopment Project Areas that are summarized in the table below and detailed in the list that follows. Tax Increment & Bonded Merge Single-Wfged, Indebtedness Capital layear Project Amended& Merged Area cap Projects Extension Areas Restated Plan Meadowbrook/Central City J J J J J Central City North J J J J J Central City South J J J J Central City East J J J J Southeast Ind. Park J J J J Tri-City J J J J South Valle J J J As shown in the table above, the Merger and Amendments propose to accomplish the following: f •)y) 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN • Merge and increase both the total amount of tax increment revenue the Agency may collect and the total amount of bonded indebtedness which can be outstanding at one time within Merged Area A; • Update and expand the capital improvement projects list for Merged Area A; • Extend by ten years the effectiveness of the Redevelopment Plans and the time to collect tax increment revenue from the Meadowbrock/Central City and Central City North Project Areas, • Amend the existing Redevelopment Plans to merge the Meadowbrook/Central City, Central City North, Central City South, Central City East, Southeast Industrial Park, Tri-City, and South Valle Project Areas for financial reasons and as allowed by the California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ('Redevelopment Law"); • Adopt a single Merged, Amended, and Restated Redevelopment Plan for the proposed Merged Area A. This Merged Plan has been prepared by the Agency pursuant to Redevelopment Law, the California Constitution and all applicable laws and ordinances. It does not present a specific plan for the redevelopment, rehabilitation and revitalization of any area within Merged Area A; instead, it establishes a process and framework for implementation. SECTION II. (200) GENERAL DEFINITIONS The following definitions will be used generally in the context of this Merged Plan unless otherwise specified herein: A. "Adopting Ordinance" means Ordinance No. _ adopted by the San Bernardino Common Council on , 2010, adopting this Merged Plan. B. "Agency" means the Redevelopment Agency of the City of San Bernardino, California. C. "Agency Board" means the Community Development Commission acting as the governing body of the Agency. D. "CCE" means the Central City East Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on May 3, 1976, by Ordinance No. 3571, and subsequently amended on December 9, 1986 by Ordinance No. MC-563, April 2, 1990 by Ordinance No. MC-721, December 19, 1994 by Ordinance No. MC-918, December 3, 2001 by Ordinance No. MC-1112, June 20, 2005 by Ordinance No. MC-1209, and April 20, 2009 By Ordinance No. MC-1302. E. "CCN" means the Central City North Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on August 6, 1973, by Ordinance No. 3366, and subsequently amended on December 9, 1986 by Ordinance No. MC-561, April 2, 1990 by Ordinance No. MC-719, December 19, 1994 by Ordinance No. MC-920, December 1, 2003 by Ordinance No. MC-1154, September 7, 2004 by Ordinance No, MC-1182, June 20, 2005 by Ordinance No. MC-1199, and April 20, 2009 by Ordinance No. MC-1294. F. "CCS' means the Central City South Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on May 3, 1976 by Ordinance No. 3572, and subsequently amended on December 9, 1986 by Ordinance No. MC-564, April 2, 1990 by Ordinance No. MC-724, December 19, 1994 by Ordinance No. MC-919, September 17, 2001 by Ordinance No. MC-1104, June 20, 2005 by Ordinance No. MC- /r/- 1208, and April 20, 2009 by Ordinance No. MC-1301. 0 4 © REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN G. "City" means the City of San Bernardino, California. H. "Common Council" means the legislative body of the City. I. "County" means the County of San Bernardino, California. J. "Disposition and Development Agreement' means an agreement between a developer and the Agency that sets forth terms and conditions for sale, improvement and redevelopment of property in the Merged Area A. K. "General Plan" means the City's General Plan, a comprehensive and long-term General Plan for the physical development of the City as provided for in Section 65300 of the California Government Code. L. "M/CC' means the Meadowbrook/Central City Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on July 21, 1958 by Ordinance No. 2233, and subsequently amended on February 24, 1965 by Ordinance No. 2649, October 22, 1968 by Ordinance No. 2953, March 16, 1970 by Ordinance No. 3059, November 9, 1977 by Ordinance No. 3683, December 9, 1986 by Ordinance No. MC-558, April 2, 1990 by Ordinance No. MC-723, December 19, 1994 by Ordinance No. MC-917, December 17, 2001 by Ordinance No. MC-1113, June 20, 2005 by Ordinance No. MC-1207, and April 20, 2009 by Ordinance No. MC-1300. M. "Map" means the Map of the Merged Area A attached hereto as Exhibit A. N. "Merged Area A" means the San Bernardino Merged Redevelopment Project Area A which includes the CCN, SEIP, Tri-City, South Valle, M/CC, CCE, and CCS Project Areas which is the territory this Merged Plan applies to, as shown on Exhibit A, and described in Exhibit B. O. "Merged Plan" means the Merged, Amended, and Restated Redevelopment Plan for the San Bernardino Merged Redevelopment Project Area A as adopted by the Adopting Ordinance. P. "Method of Relocation" means the methods or plans adopted by the Agency pursuant to Sections 33352(f), 33411, and 33411.1 of the Redevelopment Law for the relocation of families, persons, businesses, and nonprofit local community institutions to be temporarily or permanently displaced by actions of the Agency. Q. 'Participation Agreement' means an agreement entered into between the Agency and an Owner, persons engaged in business, or a tenant doing business within Merged Area A in accordance with the provisions of the Merged Plan and any rules that may be adopted and which contains the specific responsibilities and obligations of each party regarding specific implementation of the property improvements and land uses. R. 'Person" means an individual(s), or any public or private entities. S. 'Project' means any undertaking of the Agency pursuant to this Merged Plan. T. 'Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code, Sections 33000, et seq.). U. 'Rules" means the 'Rules Governing Participation and Reentry Preferences by Property Owners, Operator of Businesses, and Business Tenants" or such similar documents as may be adopted by the Agency to implement policies identified in Redevelopment Law and Section V of this Merged Plan. V. "South Valle" means the South Valle Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on July 11, 1984 by 5 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN Ordinance No. MC-387, and subsequently amended on December 19, 1994 by Ordinance No. MC-923, December 1, 2003 by Ordinance No. MC-1159, June 20, 2005 by Ordinance No. MC-1204, and April 20, 2009 by Ordinance No. MC-1299. W. "SEIP" means the Southeast Industrial Park Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on June 21 1976 by Ordinance No. MC-3583, and subsequently amended on December 9, 1986 by Ordinance No. MC-565, April 2, 1990 by Ordinance No. MC-722, Decemberl9, 1994 by Ordinance No. MC-924, December 1, 2003 by Ordinance No. MC-1156, June 20, 2005 by Ordinance No. MC-1201, and April 20, 2009 by Ordinance No. MC-1296. X. "State"means the State of California. Y. "Tri-City" means the Tri-City Redevelopment Project Area which is the portion of Merged Area A originally adopted by the Common Council on June 20, 1983 by Ordinance No. MC-283, and subsequently amended on December 19, 1994 by Ordinance No. MC-926, December 1, 2003 by Ordinance No. MC-1158, June 20, 2005 by Ordinance No. MC- 1203, and April 20, 2009 by Ordinance No. MC-1298. SECTION 111. (300) MERGED AREA A BOUNDARIES The boundaries of Merged Area A are illustrated on the map attached hereto and incorporated herein as Exhibit A. The legal description of the boundaries of Merged Area A is as described in Exhibit B attached hereto and incorporated herein. SECTION IV. (400) REDEVELOPMENT PLAN GOALS Implementation of this Merged Plan is intended to achieve the following goals: • Eliminate and prevent the spread of conditions of blight, including but not limited to: underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, parking deficiencies and other economic deficiencies, in order to create a more favorable environment for commercial, industrial, office, residential, and recreational development. • Encourage the cooperation and participation of residents, businesses, public agencies, and community organizations in the economic revitalization of Merged Area A. • Promote the economic development of Merged Area A by providing an attractive, well-serviced, well protected environment for residents and visitors. • Develop property within a coordinated land use pattern of residential, commercial, industrial, recreational and public facilities in Merged Area A consistent with the goals, policies, objectives, standards, guidelines and requirements, as set forth in the City's adopted General Plan and Zoning Code. • Implement design and use standards to assure high aesthetic and environmental quality, and provide unity and integrity to development within Merged Area A • Eliminate environmental deficiencies and inadequate public improvements including but not limited to inadequate street improvements and off-site parking, inadequate utility systems, and inadequate public services and facilities. • Develop efficient and safe circulation improvements for vehicles and pedestrians. 6 REDEVELOIPMEIWIf AGEINCW OF MHE CITY(Of SAN BERNARDINO MERGED,AMENDED,AND RIES7A7E1D[REDEVELOPMENT PLAN • Implement beautification activities to improve the visual image of the City as well as reinforce existing assets and expand the potential of Merged Area A to encourage private investment. • Encourage, promote and assist in the development and expansion of local commerce and needed commercial and industrial facilities, including providing assistance to finance facilities or capital improvements on property used for industrial or manufacturing purposes to increase local employment and improve the economic climate within Merged Area A. • Remove impediments to land disposition and development through improved infrastructure and public facilities, and the acquisition and assemblage of property into usable sites for commercial, industrial, recreational, and public facility development. • Increase, improve, and preserve housing affordable to very low, low and moderate income households, as well as promote homeownership, consistent with the goals and objectives of the community. • Encourage the restoration and reuse of older, historic structures which add to the City's character and sense of community identity. SECTION V. (500) REDEVELOPMENT ACTIONS A. (501) General The Agency proposes to eliminate and prevent the recurrence of blight, and improve the economic base of Merged Area A by: 1. Rehabilitating, altering, remodeling, improving, modernizing, clearing, or reconstructing buildings, structures and improvements. 2. Rehabilitating, preserving, developing or constructing affordable housing in compliance with State law. 3. Providing the opportunity for owners and tenants presently located in Merged Area A to participate in redevelopment projects and programs, and extending preferences to occupants to remain or relocate within the redeveloped Merged Project Area. 4. Providing relocation assistance to displaced residential and nonresidential occupants, if necessary. 5. Facilitating the development or redevelopment of land for purposes and uses consistent with this Merged Plan. 6. Providing incentives for property owners, tenants, businesses, and residents to participate in improving conditions throughout Merged Area A. 7. Acquiring real property by purchase, lease, gift, grant, request, devise or any other lawful means, including by eminent domain, unless specifically exempted, after the conduct of appropriate hearings. 8. Combining parcels and properties where and when necessary. 9. Preparing building sites and constructing necessary off-site improvements. • 7 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN 10. Acquiring, installing, developing, constructing, reconstructing, redesigning, planning, replanning, or reusing streets, curbs, gutters, sidewalks, traffic control devices, utilities,flood control facilities and other public improvements and public facilities. 11. Providing additional parking throughout the Merged Area A. 12. Providing for open space. 13. Managing property owned or acquired by the Agency. 14. Assisting in procuring financing for the construction of residential, commercial, and office buildings to increase the commercial base and enhance the residential neighborhoods of Merged Area A, and increase the number of temporary and permanent jobs in the City. 15. Disposing of property including, without limitation, the lease or sale of land at a value determined by the Agency for reuse in accordance with this Merged Plan. 16. Establishing controls, restrictions or covenants running with the land, so that property will continue to be used in accordance with this Merged Plan. 17. Vacating or abandoning streets, alleys, and other thoroughfares, as necessary, and dedicating other areas for public purposes consistent with the objectives of this Merged Plan. 18. Providing replacement housing, 9 any is required. 19. Applying for and utilizing grants, loans and any other assistance from federal or State governments, or other sources. 20. Taking actions the Agency determines are necessary and consistent with State, federal and local laws to make structural repairs to buildings and structures, including historical buildings, to meet building code standards related to seismic safety. 21. Taking actions the Agency determines are necessary and consistent with State, federal and local laws to remedy or remove a release of hazardous substances on, under or from property within Merged Area A or to remove hazardous waste from property. 22. Preparing and carrying out plans from time to time for the improvement, rehabilitation, and redevelopment of blighted areas and creating a variety of economic development programs which will help build a stronger economic base within Merged Area A. 23. Assisting businesses in Merged Area A with sign and facade improvements and general rehabilitation by providing loans and grants. 24. Adopting specific design guidelines for projects to ensure a consistent design theme which will guide rehabilitation, new development, developers, architects, and builders. 25. Developing programs to assist owners in Merged Area A with the preservation and rehabilitation of historically significant buildings and sites. To accomplish these actions and to implement this Merged Plan, the Agency is authorized to use the powers provided in this Merged Plan, and the powers now or hereafter permitted by the Redevelopment Law and any other State law. .� ��`�; 8 REDEVELOPMENT AGENC`% OF 4911E C1"W OF SAN BERNARDINO MERGED,AMENDED,AND RIES'T/kTEID IRIEDEVELOPMENT PLAN B. (502) Property Acquisition 1. (503) Acquisition of Real Prooertv The Agency may acquire real property, any interest in property, and any improvements on it by any means authorized by law including, without limitation, by gift, grant, exchange, purchase, cooperative negotiations, lease, option, bequest, devise or, unless specifically exempted, by eminent domain. As provided by Section 19, Article 1 of the California Constitution (Proposition 99), eminent domain may not be used to acquire owner occupied single family homes for the purposes of conveying the property to a private party. Eminent domain may be used to acquire any property within CCN, M/CC, CCE, or CCS Project Areas now or hereafter permitted by this Merged Plan, Redevelopment Law, and any other State law. Eminent domain shall not be used to acquire any property within SEIP, Tri-City, or South Valle Project Areas unless this provision is subsequently amended. a. (503.1) Eminent Domain Time Limitations Except as otherwise provided herein, or otherwise provided by law, no eminent domain proceedings shall be commenced in the following portions of Merged Area A after the following time limitations: Merged Area A- Project Areas Time Limit Meadowbrook/Central City January 17, 2014 Central City North August 6, 2013 Central City South September 17, 2013 Central City East January 3, 2014 Southeast Industrial Park Expired Tri-City Expired South Valle No Authority Such time limitations may be extended only by amendment of this Merged Plan, unless otherwise provided by law. The Agency is authorized to acquire real property devoted to public use through eminent domain, but property of a public body shall not be acquired without its consent unless permitted by Law. 2. (504) Acquisition of Personal Property Where necessary in the implementation of this Merged Plan, the Agency is authorized to acquire personal property in Merged Area A by any lawful means, including, without limitation, any means authorized by this Merged Plan or by law for the acquisition of real property. C. (505) Participation by Owners and Persons Engaged in Business R2ETDEVIELOIPINRENI AGENCY OIF'TIHE LRTW OF SAN BEIRNtlARYDWO MERZGEItD, AMENDEICD,AND IRE.`SIATEI(D REDEVELOPMENT PLAN 1. (506) Owner Participation The Agency encourages all property owners, tenants, and businesses in Merged Area A to be actively involved in improvement and community development within Merged Area A. In addition to opportunities for participation by individual persons and fines, participation, to the extent it is feasible, shall be available for two or more persons, firms or institutions, to join together in partnerships, corporations, or other joint entities. Opportunities to participate in the redevelopment of property in Merged Area A may include without limitation the rehabilitation of property or structures; the retention of improvements; the development of all or a portion of the participant's property; the acquisition of adjacent or other properties from the Agency; purchasing or leasing properties in Merged Area A; participating with developers in the improvement of all or a portion of a participant's properties; or other suitable means consistent with objectives and proposals of this Merged Plan and with the Agency's rules governing owner participation and re-entry. The Agency desires participation in redevelopment activities by as many owners and business tenants as possible. However, participation opportunities shall necessarily be subject to and limited by such minimum factors as the expansion of public or public utilities facilities; elimination and changing of land uses; realignment of streets; the ability of the Agency and/or owners and business tenants to finance acquisition and development activities in accordance with this Merged Plan; and whether the proposed activities conform to and further the goals and objectives of this Merged Plan. If conflicts develop between proposals of participants, this Merged Plan authorizes the Agency to, in its discretion, decline any offer of owner participation or resolve conflicting proposals between owners interested in redeveloping property by establishing reasonable priorities and preferences among participants based upon the above identified factors. 2. (507) Reentry Preferences for Persons Engaged in Business in Merged Area A Consistent with Redevelopment Law, the Agency shall extend preference to such property owners, tenants and businesses to continue in or, if the Agency acquires the land of an owner or the land on which a person engaged in business is located, to reenter Merged Area A if any such owner or such person otherwise meets the requirements prescribed in the Merged Plan and in such Rules as the Agency may enact. The ability to participate may be limited by market conditions. Owners of real property in Merged Area A shall be given the opportunity to participate in the redevelopment of Owner's property in Merged Area A, if such Owner agrees to participate in the redevelopment consistent with the Merged Plan and such Rules as the Agency may enact, provided such Owner is qualified to undertake and complete the proposed redevelopment activity as determined by the Agency. 10 REDEVELOPMENT AGENCY DIF'I OE C r"'OF SAN BERNARDINO \� MERGED,AMENDED„AND RESTA7EID[REDEVELOPMENT PLAN In appropriate circumstances, as determined by the Agency, where such action would foster the goals and objectives of the Merged Plan, an owner may participate in substantially the same location either by retaining all or portions of his/her property and purchasing adjacent property if needed and available for development; rehabilitating or demolishing all or part of his/her existing buildings or structures; initiating new development; and selling property or improvements to the Agency. When necessary to accomplish the objectives of the Merged Plan as determined by the Agency, the Agency may buy land and improvements at fair market value from existing owners and offer real property for purchase to prospective owner- participants within Merged Area A. Non-property owners who are tenants engaged in business in Merged Area A will be given opportunities to remain or to obtain reasonable preferences to reenter in business within Merged Area A if they otherwise meet the requirements prescribed by the Merged Plan and these Rules. 3. (508) Owner Participation a. Owner Participation Aoreements The Agency is authorized to enter into a Participation Agreement with Owners desiring to develop or improve their properties within Merged Area A. The Agency may, through the Participation Agreement, impose any of the standards, restrictions, and controls of the Merged Plan or any design guidelines adopted by the Agency pursuant to the Merged Plan. All conditions imposed shall be reasonably related to the goals and objectives of the Merged Plan, rules and regulations and/or the impacts of the proposed development. b. Statement of Interest Consistent with Redevelopment Law, the Rules and any other guidelines it may enact, the Agency shall solicit a Statement of Interest in owner participation from the Owner of Property that is the subject of the redevelopment proposals (i.e. the property that may be acquired, developed or rehabilitated). c. Property Owner/Tenant Proposals If a Statement of Interest meets Agency requirements and proposes participation that is feasible, the Agency shall invite the Owner to submit to the Agency a proposal for the project identified in the Statement of Interest. The Agency retains and shall exercise the discretion vested in it by law to consider and determine whether a proposal for redevelopment submitted by an Owner for participation conforms to, and meets the goals and objectives of, the Merged Plan and the Rules. The Agency shall exercise said discretion reasonably, in good faith, and without discrimination. D. (509) Implementing Rules The provisions of Sections 505-508 of this Merged Plan shall be implemented according to the Rules adopted by the Agency prior to the adoption of the Adopting Ordinance, which REDEVELOPMEN11 /AGEINCW OF THE C(TY OF SAN BERNARDINO MERGED,AMENDED,AND RESTA1rED REDEVELOPMENT PLAN may be amended from time to time by the Agency. Such Rules allow for Participation Agreements with the Agency. E. (510) Cooperation with Public Bodies Certain public bodies are authorized by State law to aid and cooperate, with or without consideration, in the planning and implementation of activities authorized by this Merged Plan. The Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate the implementation of this Merged Plan with the activities of such public bodies in order to accomplish the purposes of redevelopment and to achieve the highest public good. The Agency shall seek the cooperation of all public bodies which own or intend to acquire property in Merged Area A. Any public body which owns or leases property in Merged Area A will be afforded all the privileges of owner and business tenant participation if such public body is willing to enter into a Participation Agreement with the Agency. All plans for development of property in Merged Area A by a public body shall be subject to Agency approval. The Agency may impose on all public bodies the planning and design controls contained in and authorized by this Merged Plan to ensure that present uses and any future development by public bodies will conform to the requirements of this Merged Plan. The Agency is authorized, to the extent permissible by law, to financially (and otherwise) assist public bodies in the cost of public land, buildings, facilities, structures or other improvements (within or outside Merged Area A) where such land, buildings, facilities, structures, or other improvements are of benefit to Merged Area A. F. (511) Property Management During such time as property, if any, in Merged Area A is owned by the Agency, such property shall be under the management and control of the Agency. Such properties may be rented or leased by the Agency pending their disposition. G. (512) Payments to Taxing Agencies The Agency may pay, but is not required to pay, in any year during which it owns property in Merged Area A that is tax exempt, directly to any City, County or district, including, but not limited to, a school district, or other public corporation for whose benefit a tax would have been levied upon such property had it not been tax exempt, an amount of money in lieu of taxes that may not exceed the amount of money the public entity would have received if the property had not been tax exempt. To the extent required by Redevelopment Law, the Agency will make statutory pass-through payments to affected taxing entities. The Agency will also make pass-through payments pursuant to its existing tax-sharing agreements with the Colton School District and Redlands Unified School District for the Tri-City Project Area, and San Bernardino Municipal Water District for the Tri-City and South-Valle Project Areas. H. (513) Relocation of Persons Displaced by a Project fv` 12 REDEVELOPMENT AGENCY OF T!}iE OIITY OIr SAN(BIERNARDINO IMERGED,AMENDED,AND RESTATED REDEVELOPMENT (PLAN 1. (514) Relocation Program In accordance with the provisions of the California Relocation Assistance Law (Government Code Section 7260, at sec.), the guidelines adopted and promulgated by the California Department of Housing and Community Development (the 'Relocation Guidelines') and the Method of Relocation adopted by the Agency, the Agency shall provide relocation benefits and assistance to all persons (including families, business concerns and others) displaced by the Agency's acquisition of property in Merged Area A or as otherwise required by law. Such relocation assistance shall be provided in the manner required by the Method of Relocation. In order to carry out a redevelopment project with a minimum of hardship, the Agency will assist displaced households in finding decent, safe and sanitary housing within their financial means and otherwise suitable to their needs. The Agency shall make a reasonable effort to relocate displaced individuals, families, and commercial and professional establishments within Merged Area A. The Agency is also authorized to provide relocation for displaced persons outside Merged Area A. 2. (515) Relocation Benefits and Assistance The Agency shall provide all relocation benefits required by law and in conformance with the Method of Relocation, Relocation Guidelines, State Relocation Law (Government Code 7260 through 7277), Redevelopment Law, and any other applicable rules and regulations. In addition, the Agency may make any additional relocation payments which, in the Agency's opinion, may be reasonably necessary to carry out the purposes of this Merged Plan. These additional payments shall be subject to the availability of funds for such purpose. (516) Demolition. Clearance, Public Improvements, Site Preparation and Removal of Hazardous Waste 1. (517) Demolition and Clearance The Agency is authorized, for property acquired by the Agency or pursuant to an agreement with the owner of property, to demolish, clear or move buildings, structures, or other improvements from any real property as necessary to carry out the purposes of this Merged Plan. 2. (518) Public Improvements To the extent permitted by law, the Agency is authorized to install and construct or to cause to be installed and constructed the public improvements and public utilities (within or outside Merged Area A) necessary to carry out the purposes of this Merged Plan. Such public improvements include, but are not limited to: over or underpasses; bridges; streets; curbs; gutters; sidewalks; street lights; sewers; storm drains; traffic signals; electrical distribution systems, natural gas distribution systems; cable TV systems; fiber optics; water distribution systems; parks; plazas; playgrounds; public parking facilities; landscaped areas; schools; libraries; civic; cultural; and recreational facilities; and pedestrian improvements. A list of proposed public facilities and infrastructure improvement projects is included in the projects list set forth in Exhibit C and incorporated herein by reference. • 13 REDEVELOPMENT AGIEINC4 OF THE CITY OF SAN BERNARDINO MERGED„AMENDED,AND.RESTATED REDEVELOPMENT PLAN The Agency, as it deems necessary to carry out the Merged Plan and subject to the consent of the Common Council, may pay all or 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 outside Merged Area A, upon both the Agency Board and the Common Council making the applicable determinations required pursuant to the Redevelopment Law. When the value of such land or the cost of the installation and construction of such building, facility, structure or other improvement, or both, has been, or will be, paid or provided for initially by the City or other public corporation, the Agency may enter into a contract with the City or other public corporation under which it agrees to reimburse the City or other public corporation for all or part of the value of such land or all or part of the cost of such building, facility, structure or other improvements, or both, by periodic payments over a period of years. Any obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purposes of carrying out this Merged Plan. 3. (519) Preoaration of Building Sites The Agency may develop as a building site any real property owned or acquired by it. In connection with such development it may cause, provide, or undertake or make provisions with other agencies for the installation, or construction of streets, utilities, parks, playgrounds and other public improvements necessary for carrying out this Merged Plan in Merged Area A. 4. (520) Removal of Hazardous Waste To the extent legally allowable, the Agency may take any actions which the Agency determines are necessary and which are consistent with other State and federal laws, to remedy or remove a release of hazardous substances on, under, or from property within Merged Area A. J. (521) Rehabilitation Moving of Structures by the Agency and Seismic Repairs 1. (522) Rehabilitation and Conservation The Agency is authorized to rehabilitate and conserve, or to cause to be rehabilitated and conserved, any property, building or structure in Merged Area A owned by the Agency. The Agency is also authorized to advise, encourage, and assist (through a loan program or otherwise) in the rehabilitation and conservation of property, buildings or structures in Merged Area A not owned by the Agency to the extent permitted by the Redevelopment Law. The Agency is authorized to acquire, restore, rehabilitate, move and conserve buildings of historic or architectural significance. It shall be the purpose of this Merged Plan to allow for the retention of as many existing businesses as practicable and to enhance the economic Iffe of these businesses by a program of voluntary participation in their conservation and rehabilitation. The Agency is authorized to conduct a program of assistance and enforcement to encourage owners of property within Merged Area A to upgrade and maintain their property consistent with this Merged Plan and such standards as may be developed for Merged Area A. ( •.1 14 REDEVELOPMENT AGENCY Of THE UTN OF ,SAN IBiE'RHAIRIMNO (MERGED,AMENDED,AND RESTATED IRE'DiEVEiLOIPIMEIN'I IPILAN The extent of rehabilitation in Merged Area A shall be subject to the discretion of the Agency based upon such objective factors as: a. Compatibility of rehabilitation with land uses as provided for in this Merged Plan. b. Economic feasibility of proposed rehabilitation and conservation activity. C. Structural feasibility of proposed rehabilitation and conservational activity. d. The undertaking of rehabilitation and conservation activities in an expeditious manner and in conformance with the requirements of this Merged Plan and such property rehabilitation standards as may be adopted by the Agency. e. The need for expansion of public improvements, facilities and utilities. f. The assembly and development of properties in accordance with this Merged Plan. The Agency may adopt property rehabilitation standards for the rehabilitation of properties in Merged Area A. 2. (523) Moving of Structures As necessary in carrying out this Merged Plan, the Agency is authorized to move, or to cause to be moved, any building structures or other improvements from any real property acquired which can be rehabilitated to a location within or outside Merged Area A. 3. (524) Seismic Retrofit For any project undertaken by the Agency within Merged Area A for building rehabilitation or alteration in construction, the Agency may, by following all applicable procedures which are consistent with local, State, and federal law, take those actions which the Agency determines are necessary to provide for seismic retrofits. K. (525) Property Disposition and Development 1. (526) Real Property Disposition and Development a. (527) General For the purposes of this Merged Plan, the Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose of any interest in real property. To the © extent permitted by law, the Agency is authorized to dispose of real property by negotiated lease or sale without public bidding. Except as otherwise permitted by law, before any interest in property of the Agency acquired in whole or in part, directly or indirectly, with tax increment moneys is sold or 1E � 15 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN leased for development pursuant to this Merged Plan, such sale or lease shall be first approved by the Common Council after public hearing. Except as otherwise permitted by law, no real property acquired by the Agency, in whole or in part with tax increment, or any interest therein, shall be sold or leased for development pursuant to the Merged Plan for an amount less than its fair market value, or the fair reuse value at the use and with the covenants, conditions and development costs authorized by the sale or lease. Unless otherwise permitted by law, the real property acquired by the Agency in Merged Area A, except property conveyed to it by the City, shall be sold or leased to public or private persons or entities for improvement and use of the property in conformance with this Merged Plan. To the extent permitted by law, real property may be conveyed by the Agency to the City, and where beneficial to Merged Area A, to any other public body without charge or for an amount less than fair market value. All purchasers or lessees of property from the Agency shall be obligated to use the property for the purposes designated in this Merged Plan, to begin and complete improvement of such property within a period of time which the Agency fixes as reasonable, and to comply with other conditions which the Agency deems necessary to carry out the purposes of this Merged Plan. During the period of redevelopment in Merged Area A, the Agency shall ensure that all provisions of this Merged Plan, and other documents formulated pursuant to this Merged Plan, are being observed, and that �! development of Merged Area A is proceeding in accordance with applicable development documents and time schedules. All development, whether public or private, must conform to this Merged Plan and all applicable federal, State, and local laws, including without limitation the City's planning and zoning ordinances, building, environmental and other land use development standards. Such development must receive the approval of all appropriate public agencies. b. (528) Purchase and Development Documents To provide adequate safeguards to ensure that the provisions of this Merged Plan will be carried out and to prevent the recurrence of blight, all real property sold, leased, or conveyed by the Agency, as well as all property subject to Participation Agreements, shall be made subject to the provisions of this Merged Plan by leases, deeds, contracts, agreements, declarations of restrictions, provisions of the planning and zoning ordinances of the City, conditional use permits, or other means. Where appropriate, as determined by the Agency, such documents or portions thereof shall be recorded in the office of the Recorder of the County. Leases, subleases, deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants •1 } 16 r REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN running with the land, rights of reverter, conditions subsequent, equitable servitudes, or any other provisions necessary to carry out this Merged Plan. The Agency shall reserve such powers and controls in Disposition and Development Agreements or similar agreements as may be necessary to prevent transfer, retention, or use of property for speculative purposes and to ensure that redevelopment is carried out pursuant to this Merged Plan. The Agency shall obligate lessees and purchasers of real property acquired in redevelopment projects and owners of property improved as part of a redevelopment project to refrain from discrimination or segregation based upon race, color, creed, religion, national origin, ancestry, sex, marital status, sexual orientation, physical condition, pregnancy or pregnancy-related condition, political affiliation or opinion, age, or medical condition in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of property in Merged Area A. All property sold, leased, conveyed, or subject to Disposition and Development Agreements shall be expressly subject by appropriate documents to the restriction that all deeds, leases, subleases, or contracts for the sale, lease, sublease or other transfer of land in Merged Area A shall contain such nondiscrimination and non-segregation clauses as are required by law. 2. (529) Personal Property Disposition For the purposes of this Merged Plan, the Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber, or otherwise dispose of personal property. L. (530) Provision for Low and Moderate Income Housing 1. (531) Definition of Terms Unless otherwise permitted or required by law, the terms "affordable housing cost", "replacement dwelling unit", "persons and families of low or moderate income", "substantially rehabilitated dwelling units" and "very low income households" as used herein shall have the meanings as now defined by the Redevelopment Law and other State and local laws and regulations pertaining thereto. 2. (532) Authority Generally The Agency may, inside or outside Merged Area A: acquire real property, buildings sites, buildings or structures, donate real property, improve real property or building sites, construct or rehabilitate buildings or structures, and take any other such actions as may be permitted by the Redevelopment Law, in order to provide housing for persons and families of low or moderate income. 3. (533) Replacement Housing OWhenever 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 ll of a redevelopment project subject to a written agreement, the Agency shall, within (:�.Y 17 REDEVELOPMENT AGENCY OIF THE CffY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED(REDEVELOPMENT PLAN 1 1 four years of such 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 costs within the territorial jurisdiction of the Agency consistent with Redevelopment Law. The Agency shall comply with all provisions of Redevelopment Law pertaining to replacement housing. 4. (534) New or Rehabilitated Dwelling Units Developed Within the Project Area Unless otherwise permitted by law, at least thirty percent (30%) of all new and substantially rehabilitated dwelling units developed by the Agency shall be available at affordable housing cost to persons and families of low or moderate income and of such thirty percent (30%), not less than fifty percent (50%) shall be available to and occupied by very low income households. Unless otherwise permitted by law, at least fifteen percent (15%) of all new and substantially rehabilitated dwelling units developed within Merged Area A 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 and of such fifteen percent (15%), not less than forty percent (40%) shall be available at affordable housing cost to very low income households. The percentage requirements set forth in this Section 534 shall apply independently of the requirements of Section 533 of this Merged Plan and in the aggregate to the supply of housing to be made available pursuant to this Section 534 and not to each individual case of rehabilitation, development or construction of dwelling units. Pursuant to Section 33413(b) (4) of the Redevelopment Law, as may be amended from time to time, the Agency shall prepare and adopt a Housing Compliance Plan to comply with the requirements set forth above, for Merged Area A. The Housing Compliance Plan shall be consistent with, and may be included within the Housing Element of the City's General Plan. Unless otherwise permitted by law, the Housing Compliance Plan shall be reviewed and, if necessary, amended at least every five (5) years in conjunction with the Housing Element or Implementation Plan cycle. Unless otherwise permitted by law, the Housing Compliance Plan shall ensure that the requirements of this section are met every ten (10)years. Except as otherwise permitted or required by law, the Agency shall require, by contract or other appropriate means, that whenever any low and moderate income housing units are developed within Merged Area A, such units shall be made available on a priority basis for rent or purchase, whichever the case may be, to persons and families of low or moderate income displaced by the Project; failure to give such priority shall not affect the validity of title to the real property upon which such housing units have been developed. 5. (535) Duration of Dwelling Unit Availability Unless otherwise permitted by law, the Agency shall require the aggregate number of dwelling units rehabilitated, developed or constructed pursuant to Sections 533 � �) 18 REDEVELOPMENT AGENCY OF THE C"'Y OF SAN BIERUAIRYBWO MERGED,AMENDED,AND RESTATED IREDEVEILOPIM EN:17 FLAW and 534 of this Merged Plan to remain available at affordable housing cost to very low income, low income, and moderate income households for the longest feasible time, as determined by the Agency, but for not less than the period of the residential land use controls established in Section X of this Merged Plan. 6. (536) Relocation Housing If insufficient suitable housing units are available in the City for use by persons and families of low or moderate income displaced by a Project, the Agency may, to the extent of that deficiency, direct or cause the development, rehabilitation or construction of housing units within the City, both inside and outside Merged Area A. 7. (537) Increased and Imoroved Supply Except as otherwise permitted by law, not less than twenty percent(20%)of all taxes from CCE, CCS, South Valle, SEIP, and Tri-City, and not less than thirty percent (30%) of all taxes from CCN and M/CC, which are allocated to the Agency pursuant to subdivision (b) of Section 33670 of the Redevelopment Law and Section 702(2) and (3) of this Merged Plan shall be used by the Agency for the purposes of increasing, improving and preserving the City's supply of low and moderate income housing available at affordable housing cost as defined by Section 50052.5 of the California Health and Safety Code, to persons and families of low or moderate income, as defined in Section 50093 of the California Health and Safety Code, and very low income households, as defined in Section 50105 of the California Health and Safety Code, unless one or more applicable findings are made pursuant to the Redevelopment Law. The funds for this purpose shall be held in a separate Low and Moderate Income Housing Fund until used. Any interest earned by such Low and Moderate Income Housing Fund shall accrue to the Housing Fund. In implementing this Section 537 of the Merged Plan, the Agency may exercise any or all of its powers including, but not limited to,the following: 1. Acquire real property or building sites. 2. Improve real property or building sites with on-site or off-site improvements. 3. Donate real property to private or public persons or entities. 4. Finance insurance premiums. 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 of the California Health and Safety Code, lower income households, as defined by Section �. 50079.5 of the California Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of • 19 REDEVELOPMENT AGENCY OF THE arR'V OF SAM IBIEIRIP ARDMO MERGED,AMENDED,AND RESTATED URIEJD'EVELDIPM EW (PLAN the California Health and Safety Code, 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. The Agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 533 of this Merged Plan. These funds may be used inside or outside Merged Area A; however, these funds may be used outside Merged Area A only if findings of benefit to Project Area A are made pursuant to the Redevelopment Law. 8. (538) Duration of Affordability Except as provided in Section 33334.3 of the Redevelopment Law, or as otherwise permitted by law, all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund pursuant to an agreement approved by the Agency shall be required to remain available at affordable housing cost 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: a. Fifty-five years for rental units. However, the Agency may replace rental units with equally affordable and comparable rental units in another location within the City if (i) the 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 (ii) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund. b. Forty-five years for owner-occupied units. However, the Agency may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of that otherwise permitted under Redevelopment Law Section 33334.3 pursuant to an adopted program which protects the Agency's investment of moneys from the Low and Moderate Income Housing Fund. c. Fifteen years for mutual self-help housing units that are occupied by and affordable to very low and low-income households. However, the Agency may permit sales of mutual self-help housing units prior to expiration of the 15-year period for a price in excess of that otherwise permitted under Redevelopment Law Section 33334.3 pursuant to an adopted program that (i) protects the Agency's investment of moneys from the Low and Moderate Income Housing Fund, and (ii)ensures through a recorded regulatory agreement, deed of trust, or similar recorded instrument that if a mutual self-help housing unit is sold at any time after expiration of the 15-year period and prior to 45 years after the date of recording of the covenants or restrictions required pursuant to Law, the Agency recovers, at a minimum, its original principal from the Low and Moderate Income Jl REDEVELOPMENT AGENCY OF THE CM OF SAN BER.NARDINO MERGED,AMENDED„AND RESTATED REDEVELOPMENT(PLAN Housing Fund from the proceeds of the sales and deposits those funds into the Low and moderate Income Housing Fund. SECTION VI. (600) USES PERMITTED IN THE MERGED AREA A A. (601) Maps and Uses Permitted The Map attached hereto as Exhibit A and incorporated herein illustrate the location of Merged Area A boundaries, the immediately adjacent streets, and existing public rights-of-way and public easements. The land uses permitted by this Merged Plan shall be those permitted by the General Plan and City zoning ordinances as they now exist or may hereafter be amended. B. (602) Major Land Uses (as now provided in the General Plan) Major land uses permitted within Merged Area A shall include: Commercial, Industrial, Residential, Public Institutional, and special uses such as specific plan uses. The areas shown on the plan maps may be used for any of the various kinds of uses specified for or permitted within such areas by the General Plan and Zoning Ordinance as they exist or are hereafter amended in the future. C. (603) Public Uses 1. (604) Public Street Layout. Rights-of-Way and Easements The public street system for Merged Area A is illustrated on the Map identified as Exhibit A. The street system in Merged Area A shall be developed in accordance with the Circulation Element of the General Plan. Certain streets and rights-of-way may be widened, altered, abandoned, vacated, or closed by the City as necessary for proper development of Merged Area A. Additional easements may be created by the Agency and City in Merged Area A as needed for proper development and circulation. The public rights-of-way shall be used for vehicular, bicycle and/or pedestrian traffic as well as for public improvements, public and private utilities, and activities typically found in public rights-of-way. In addition, all necessary easements for public uses, public facilities, and public utilities may be retained or created. 2. (605) Other Public and Open Space Uses Both within and, where appropriate, outside of Merged Area A, the Agency is authorized to permit, establish, or enlarge public, institutional, or non-profit uses, including, but not limited to, schools, community centers, auditorium and civic center facilities, criminal justice facilities, park and recreational facilities, parking facilities, transit facilities, libraries, hospitals, educational, fraternal, philanthropic and charitable institutions or other similar associations or organizations. All such uses `- shall be deemed to conform to the provisions of this Merged Plan provided that such uses conform with all other applicable laws and ordinances and that such uses are 21 REDEVELOPMENT AGENCY OF THE CITY OF SAN BIERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN approved by the City. The Agency may impose such other reasonable restrictions as are necessary to protect development and uses in Merged Area A. D. (606) Conforming Properties/Certificates of Conformance The Agency may, in its sole and absolute discretion, determine that certain real properties within Merged Area A meet the requirements of this Merged Plan, and the owners of such properties may be permitted to remain as owners of conforming properties without a Participation Agreement with the Agency, provided such owners continue to operate, use, and maintain the real properties within the requirements of this Merged Plan. If such a determination is made by the Agency, the Agency may issue a Certificate of Conformance to qualifying properties and these properties will not be subject to acquisition by eminent domain under this Merged Plan so long as the property continues to conform to this Merged Plan and to other terms and conditions required by the Agency. If a property owner makes • written request for a Certificate of Conformance, the Agency shall, within 120 days, issue • Certificate of Conformance, or notify the property owner in writing what specific action the owner must take in order to receive a Certificate of Conformance. If a Certificate of Conformance is issued, the Agency may not institute an eminent domain action to acquire the property covered by the Certificate of Conformance as long as the property is maintained in good condition. An owner of a conforming property may be required by the Agency to enter into a Participation Agreement with the Agency in the event that such owner desires to (1) construct any additional improvements or substantially alter or modify existing structures on any of the real property described above as conforming; or (2) acquire additional property within Merged Area A. E. (607) Nonconforming Uses The Agency is authorized but not required to permit an existing use to remain in an existing building in good condition if the use does not conform to the provisions of this Merged Plan, provided that such use is generally compatible with existing and proposed developments and uses in Merged Area A. The Agency may, but is not required to, authorize additions, alterations, repairs or other improvements in Merged Area A for uses which do not conform to the provisions of this Merged Plan where, in the determination of the Agency, such improvements would be compatible with surrounding Merged Area A uses and proposed development. F. (608) Interim Uses Pending the ultimate development of land by developers and participants, the Agency is authorized to use or permit the use of any land in Merged Area A for interim uses not in conformity with the uses permitted in this Merged Plan. Such interim use, however, shall conform to all applicable sections of the City codes other than permitted uses. G. (609) General Controls and Limitations All real property in Merged Area A is hereby made subject to the controls and requirements of this Merged Plan. No real property shall be developed, redeveloped, rehabilitated, or otherwise changed after the date of the adoption of this Merged Plan except in conformance (�. 22 REDIEVF.U"EWr/AGEN"OF THE ORTN OF S/A% 6ERNAIRD.1N0 MERGED,AAMEIADED,AND(RESTATED REDEVELOPMENT PLAIN with the goals and provisions of this Merged Plan and all applicable City codes and ordinances. The land use controls of this Merged Plan shall apply for the periods set forth in Section X below. The type, size, height, number and use of buildings within Merged Area A will be controlled by the applicable City planning and zoning ordinances as they now exist or may hereafter be amended from time to time. 1. (610) New Construction All construction in Merged Area A shall comply with all applicable State and local laws in effect from time to time. In addition to applicable City codes, ordinances, or other requirements governing development in the Merged Area A, additional specific performance and development standards may be adopted by the Agency to control and direct improvement activities in Merged Area A. 2. (611) Rehabilitation Any existing structure within Merged Area A which the Agency shall approve for retention and rehabilitation shall be repaired, altered, reconstructed, or rehabilitated in such a manner that it will meet the following requirements: be safe and sound in all physical respects, be attractive in appearance and not detrimental to the surrounding uses. 3. (612) Number of Dwelling Units The total number of dwelling units in Merged Area A shall be regulated by the General Plan. As of the date of adoption of the Adopting Ordinance, there are approximately 3,018 dwelling units in Merged Area A. 4. (613) Open Space and Landscaping The approximate amount of open space to be provided in Merged Area A is the total of all areas so designated and diagrammed in the Land Use Element of the General Plan and those areas in the public rights-of-way or provided through site coverage limitations on new development as established by the City and this Merged Plan. Landscaping shall be developed in Merged Area A to ensure optimum use of living plant material in conformance with the standards of the City. 5. (614) Limitations on Tvoe. Size and Height of Buildings The limits on building intensity, type, size and height, shall be established in accordance with the provisions and diagrams of the General Plan and the zoning ordinances, as they now exist or are hereafter amended. 6. (615) Signs All signs shall conforni to the City's requirements. Design of all proposed new signs shall be submitted prior to installation to the appropriate governing bodies of the City and/or the Agency for review and approval pursuant to the Municipal Code of the '�.. City and procedures permitted by this Merged Plan. New signs must contribute to a reduction in sign blight. (` •j 23 REDEVEL0PMENT AGENCY OF THE CITY Of SAN BERNARDINO MERGED„AMENDED,AND RESTATED REDEVEL0PMENT RYAN 7. (616) Utilities The Agency shall require that all utilities be placed underground whenever physically possible and economically feasible. 8. (617) Incompatible Uses No use or structure which is by reason of appearance, traffic, parking, smoke, glare, noise, odor, or similar factors incompatible with the surrounding areas, structures, or uses shall be permitted in any part of Merged Area A, except as otherwise permitted by the City. 9. (618) Subdivision of Parcels No parcels in Merged Area A, including any parcel retained by a participant, shall be consolidated, subdivided or re-subdivided without the approval of the City, and, if necessary for purposes of this Merged Plan, by the Agency. 10. (619) Minor Variations The Agency is authorized to permit minor variations from the limits, restrictions and controls established by this Merged Plan. In order to permit any such variation, the Agency must determine all of the following: a. The application of certain provisions of this Merged Plan would result in practical difficulties or unnecessary hardships inconsistent with the general purposes and intent of this Merged Plan. b. There are exceptional circumstances or conditions applicable to the property or to the intended development of the property which do not apply generally to other properties having the same standards, restrictions, and controls. c. Permitting a variation will not be materially detrimental to the public welfare or injurious to property or improvements in the area. d. Permitting a variation will not be contrary to the objectives of this Merged Plan. No such variation shall be granted which permits other than a minor departure from the provisions of this Merged Plan. In permitting any such variation, the Agency shall impose such conditions as are necessary to protect the public health, safety, or welfare, and to assure compliance with the purposes of this Merged Plan. H. (620) Design for Development Within the limits, restrictions, and controls established in this Merged Plan, and subject to the provisions of Sections 601 and 609 herein, the Agency is authorized to establish heights of buildings, land coverage, setback requirements, parking requirements, design criteria, traffic circulation, traffic access, and other development and design controls necessary for proper development of both private and public areas within Merged Area A. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED.,AND RESTATED REDEVELOPMENT PLAN No new improvement shall be constructed, and no existing improvement shall be substantially modified, altered, repaired, or rehabilitated except in accordance with this Merged Plan and any such controls approved by the Agency. In the case of property which is the subject of a Disposition and Development Agreement or a Participation Agreement with the Agency, such property shall be developed in accordance with the provisions of such Agreement. One of the objectives of this Merged Plan is to create an attractive and pleasant environment in Merged Area A. Therefore, such plans shall give consideration to good design, open space and other amenities to enhance the aesthetic quality of Merged Area A. The Agency shall not approve any plans that do not comply with this Merged Plan except as permitted by Section 619 of this Merged Plan. I. (621) Building Permits Any building permit that is issued for the rehabilitation or construction of any new building or any addition, construction, moving, conversion or alteration to an existing building in Merged Area A from the date of adoption of this Merged Plan must be in conformance with the provisions of this Merged Plan, any design for development adopted by the Agency, any restrictions or controls established by resolution of the Agency, and any applicable participation or other agreements. The Agency is authorized to establish permit procedures and approvals required for purposes of this Merged Plan. A building permit shall be issued only after the applicant for same has been granted all approvals required by the City and the Agency at the time of application. SECTION VII. (700) METHODS FOR FINANCING THE PROJECT A. (701) General Description of the Proposed Financing Methods Upon adoption of this Merged Plan by the Common Council, the Agency is authorized to finance implementation of this Merged Plan with assistance from local sources, the State and/or the federal government, property tax increment, interest income, Agency bonds, donations, loans from private financial institutions or from any other available sources of financing which are legally available and do not conflict with the objectives of this Merged Plan. The Agency is also authorized to obtain advances, borrow funds, issue bonds or other obligations, and create indebtedness in carrying out this Merged Plan. The principal and interest on such indebtedness may be paid from tax increment revenue or any other funds available to the Agency. Advances and loans for survey and planning and for the operating capital for administration of this Merged Plan may be provided by the City until adequate tax increment revenue or other funds are available to repay the advances and loans. The City or other public agency, as it is able, may also supply additional assistance through issuance of bonds, loans and grants and in-kind assistance. Any assistance shall be subject to terms established by an agreement between the Agency, City and/or other public agency providing such assistance. As available, gas tax funds from the State and sales tax funds from the County may be used for the street system. �� ' � 25 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED„AMENDED,AND RESTATED REDEVELOPMENT(PLAN The Agency may issue bonds or other obligations and expend their proceeds to carry out this Merged Plan. The Agency is authorized to issue bonds or other obligations as appropriate and feasible in an amount sufficient to finance all or any part of Merged Plan implementation activities. The Agency shall pay the principal and interest on bonds or other obligations of the Agency as they become due and payable. B. (702) Tax Increment Revenue All taxes levied upon taxable property within Merged Area A each year by or for the benefit of the State, County, City or other public corporation (hereinafter called "Taxing Agency" or "Taxing Agencies") after the effective date of the Adopting Ordinance, shall be divided as follows: 1. That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the Taxing Agencies upon the total sum of the assessed value of the taxable property in Merged Area A as shown upon the assessment roll used in connection with the taxation of such property by such Taxing Agency, last equalized prior to the effective date of such Adopting Ordinance, shall be allocated to and when collected shall be paid to the respective Taxing Agencies as taxes by or for the Taxing Agencies on all other property are paid (for the purpose of allocating taxes levied by or for any Taxing Agency or Agencies which did not include the territory in Merged Area A on the effective date of the Adopting Ordinance but to which such territory has been annexed or otherwise included after such effective date, the assessment roll of the County last equalized on the effective date of the Adopting Ordinance shall be used in determining the assessed valuation of the taxable property in Merged Area A on the effective date). 2. That portion of the levied taxes each year in excess of such amount shall be allocated to, and when collected shall be paid into, a special fund of the Agency to pay 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 refinance in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in Merged Area A exceeds the total assessed value of the taxable property in Merged Area A as shown by the last equalized assessment roll referred to in paragraph (1.) hereof, all of the taxes levied and collected upon the taxable property in Merged Area A shall be paid to the respective Taxing Agencies. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all monies thereafter received from taxes upon the taxable property in Merged Area A shall be paid to the respective Taxing Agencies as taxes on all other property are paid. 3. That portion of the taxes in excess of the amount identified in paragraph (1.) above which is attributable to a tax rate levied by a Taxing Agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of and interest on any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that Taxing Agency. This ^e} 26 �7 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN paragraph (3.) shall only apply to taxes levied to repay bonded indebtedness approved by the voters on or after January 1, 1989. The Agency is authorized to make pledges as to speck advances, loans and indebtedness as appropriate in carrying out the Project. The portion of taxes allocated and paid to the Agency pursuant to subparagraph (2.) above is irrevocably pledged to pay 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 refinance, in whole or in part, the redevelopment program for Merged Area A. Pursuant to Section 33333.10(e) of the Redevelopment Law, after the time limitation on the payment of indebtedness and receipt of tax increment revenue that would have taken effect, if not for the amendment to extend this time limitation, the Agency shall spend tax increment funds (except for monies deposited into the Low and Moderate Income Housing Fund) collected from WCC and CCN on those portions of the Merged Area identified on Exhibit D as blighted or necessary and essential. C. (703) Agency Bonds The Agency is authorized to issue bonds and other obligations from time to time, if it deems it appropriate to do so, in order to finance all or any part of Merged Plan implementation activities. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds or other obligations by reason of their issuance. The bonds and other obligations of the Agency are not a debt of the City or the State; nor are any of As political subdivisions liable for them; nor in any event shall the bonds or obligations be payable out of any funds or properties other than those of the Agency; and such bonds and other obligations shall so state on their face. The bonds and other obligations do not constitute indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Pursuant to Sections 33471 and 33475 of the Redevelopment Law, taxes attributable to each constituent Project Area of Merged Area A adopted on or prior to January 1, 1978, pursuant to Section 33670 of the Redevelopment Law, shall be first used to comply with the terms of any bond resolution or other agreement pledging such taxes from the constituent Project Area until a refunding has occurred which satisfies the terms of such bond or agreement. The amount of bonded indebtedness, to be repaid in whole or in part from the allocation of taxes pursuant to Section 33670 of the Redevelopment Law, which can be outstanding at one time, shall not exceed the limit as stated in Section 1004 of this Merged Plan, except by amendment to this Merged Plan. D. (704) Other Loans and Grants Any other loans, grants, guarantees or financial assistance from the federal government, the State, or any other public or private source will be utilized, if available, as appropriate in carrying out this Merged Plan. In addition, the Agency may make loans as permitted by law to public or private entities for any of its redevelopment purposes. 27 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN E. (705) Rehabilitation Loans. Grants. and Rebates The Agency and the City may commit funds from any source to rehabilitation programs for the purposes of loans, grants, or rebate payments for self-financed rehabilitation work. The rules and regulations for such programs shall be those which may already exist or which may be developed in the future. The Agency and the City shall seek to acquire grant funds and direct loan allocations from State and federal sources, as they may be available from time to time, for the carrying out of such programs. SECTION VIII. (800)ACTIONS BY THE CITY The City shall aid and cooperate with the Agency in carrying out this Merged Plan and shall take all reasonable actions necessary to ensure the continued fulfillment of the purposes of this Merged Plan and to prevent the recurrence or spread of blighting conditions in Merged Area A. Actions by the City may include, but shall not be limited to, the following: 1. Institution and completion of proceedings for opening, closing, vacating, widening, or changing the grades of streets, alleys, and other public rights-of- way, and for other necessary modifications of the streets, the street layout, and other public rights-of-way in Merged Area A. Such action by the City shall include the requirement of abandonment and relocation by the public utility companies of their operations in public rights-of-way as appropriate to carry out this Merged Plan, provided that nothing in this Merged Plan shall be deemed to require the cost of such abandonment, removal, and relocation to be borne by others than those legally required to bear such costs. 2. Institution and completion of proceedings necessary for changes and improvements to publicly-owned parcels and utilities in Merged Area A. 3. Performance of the above, and of all other functions and services relating to public health, safety, and physical development normally rendered in accordance with a schedule which will permit the redevelopment of Merged Area A to be commenced and carried to completion without unnecessary delays. 4. Imposition, whenever necessary, of appropriate design controls within the limits of this Merged Plan in Merged Area A to ensure proper development and use of land. 5. Provisions for administrationlenforcement of this Merged Plan by the City after completion of development. 6. The undertaking and completion of any other proceedings necessary to carry out the Project. 7. The expenditure of any City funds in connection with redevelopment of the Project Area pursuant to this Merged Plan. 8. Revision of the City zoning ordinance, adoption of specific plans or execution of statutory development agreements to permit the land uses and facilitate the development authorized by this Merged Plan. 28 REDEVELOPMENT AGENCY OF THE CRAY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT Upon adoption, the administration and enforcement of this Merged Plan or other documents implementing this Merged Plan shall be performed by the City and/or the Agency, as appropriate. The provisions of this Merged Plan or other documents entered into pursuant to this Merged Plan may also be enforced by litigation or similar proceedings by either the Agency or the City. Such remedies may include, but are not limited to, specific performance, damages, re-entry onto property, power of termination, or injunctions. In addition, any recorded provisions which are expressly for the benefit of owners of property in Merged Area A may be enforced by such owners. All provisions in Redevelopment Law as may be required to be included in a redevelopment plan are hereby incorporated as if fully set forth herein. SECTION X. (1000) PLAN LIMITATIONS A. (1001) Effectiveness of the Merged Plan + Except for the non-discrimination and non-segregation provisions which shall run in II perpetuity, and except as otherwise provided herein, the provisions of this Merged Plan shall be effective, and the provisions of other documents formulated pursuant to this Merged Plan may be made effective as follows: Merged Area A- Project Area Time Limit Meadowbrook/Central City May 3, 2029 Central City North August 6, 2026 Central City South May 3, 2019 Central City East May 3, 2019 Southeast Industrial Park June 21, 2019 Tri-City June 20, 2026 South Valle July 9, 2026 After the time limit on the effectiveness of the Merged Plan has expired, the Agency shall have no authority to act pursuant to the Merged Plan except to pay previously incurred indebtedness and to enforce existing covenants or contracts. However, if the Agency has not completed its housing obligations pursuant to Section 33413 of the Redevelopment Law, the Agency shall retain its authority to implement requirements under Section 33413, including the 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. B. (1002) Limitation on Incurring Debt The time limits on the establishing of loans, advances, and indebtedness to be paid with the proceeds of property taxes received pursuant to Section 33670 of the Redevelopment Law to finance in whole or in part the redevelopment project are as follows: G 29 IREG rVIEILQlPUE10 /AGIEW N OF T"E CIrTY(OF SAN EERW,AIR'DIN'D VERGED,A VEINIDIEID,(AINID IRIES'PA TED IWEIDE'VELOPMEW7 IPLAN Merged Area A- Project Area Time Limit' Meadowbrook/Central City Eliminate Central City North Eliminated Central City South Eliminated' Central City East Eliminated' Southeast Industrial Park Eliminated Tri-City Eliminated South Valle Eliminated This limit, however, shall not prevent the Agency from incurring debt to be paid from the Low and Moderate Income Housing Fund or establishing more debt in order to full the Agency's housing obligations under Section 33413 of the Redevelopment Law. The loans, advances, or indebtedness may be repaid over a period of time longer than this time limit as provided herein. 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. This limit shall not prevent the Agency 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 beyond the time limit to repay indebtedness required by this section. Pursuant to Sections 33471 and 33475 of the Redevelopment Law, taxes attributable to each constituent Project Area of Merged Area A adopted on or prior to January 1, 1978, pursuant to Section 33670 of the Redevelopment Law, shall be first used to comply with the terms of any bond resolution or othbr agreement pledging such taxes from the constituent Project Area until a refunding has occurred which satisfies the terms of such bond or agreement. The time limits established in this Section 1002 may be extended in the manner provided by law. C. (1003) Limitation on Receipt of Tax Increment and Payment of Indebtedness Except as otherwise provided herein, the limitations on the receipt of tax increment and the payment of indebtedness with the proceeds of property taxes received pursuant to Section 33670 of the Redevelopment Law are as follows: Merged Area A- Project Area Time Limit Meadowbrook/Central City May 3, 2039 Central City North August 6, 2036 Central City South May 3, 2029 Central City East May 3, 2029 Southeast Industrial Park June 21, 2029 Tri-City June 20, 2036 South Valle July 9, 2036 ' Time limits to incur debt were eliminated pursuant to Redevelopment Law Section 33333.6(e)(2)(B) following the enactment of SB 211 (Chapter 741, Statutes of 2001)in 2002. Accordingly, the time limit to incur debt corresponds to the effectiveness date of the Merged Plan for each project area. 2 Time limit to incur debt is eliminated pending adoption of an amendment pursuant to SB 211. 30 - REDEVELOPMENT AGENCV OF THE ciao OF SAW'BERN ARDINO �. MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN D. (1004) Limitation on the Amount of Bonded Indebtedness This Merged Plan authorizes the issuance of bonds to be repaid in whole or in part from the allocation of taxes pursuant to Redevelopment Law Section 33670. Except by amendment of the Merged Plan, the amount of bonded indebtedness which can be outstanding at one time and payable in whole or in part from tax allocations attributable to Merged Area A shall not exceed three hundred and twenty seven million dollars ($327,000,000). If other sources of payment are lawfully combined with tax allocations, there shall be no limit as to the amount of bonded indebtedness serviceable from such other source of funds. E. (1005) Limitation on the Collection of Tax Increment Taxes, as defined in Section 33670 of the Redevelopment Law, collected from Merged Area A shall not be divided and shall not be allocated to the Agency in excess of two billion five hundred million dollars ($2,500,000,000)except by further amendment of the Merged Plan. SECTION XI. (1100) PROCEDURE FOR AMENDMENT This Merged Plan may be amended by means of the procedure established in Sections 33450- 33458 of the Redevelopment Law or by any other procedure hereafter established by law. This Merged Plan is to be liberally construed and not interpreted as a limitation on the powers of the Agency. Notwithstanding any provision in this Merged Plan to the contrary, the Agency may hereby `r utilize all powers of a redevelopment agency pursuant to the Redevelopment Law and all other applicable laws, as the same now exists or may hereafter be amended or adopted. V 31 IREDEVIELUP€.dEINlt AGEIW )f /OIF 'TNNE CITY OF SAN BERNARDINO (VERGED, /AMEINDEC, /AMID RESTATED REDEVELOPMENT PLAN EXHIBIT A- MAP OF THE SAN BERNARDINO MERGED REDEVELOPMENT PROJECT AREA A SAN 13ERNARDINO MERGED REDEVELOPMENT PROJECTAREAA(MERGED AREAA) EXHIBITA I41 Central Qty NOrth ^•,_ - _ Tn-Cd c i e Y Central City East orra q .x •' xns, nr f IT t- K., Legend g t x=dowbrook/Central City 0 Central Cny North Central Cdy East N �:�� s € �Meatlowbrook/Central city Central coy South Central City South _ Q Southeast Industrial ta o ,,, I Tni Cdy QSouth Valle Southead Industrial uxu,,n t mu r "r Tri-City IT Swrte GIyWSSn B[rnNpM GIS ppMeM Me4uwn 0 010? Oa 06 08 ®Noes • 32 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED„AND RESTATED REDEVELOPMENT FLAN EXHIBIT E- MERGED AREA A LEGAL DESCRIPTIONS The legal description of the boundaries of the Meadowbrook Project Area No. 1 is as follows: PART A - . LEGAL DESCRIPTION OF MEADOWBROOK PROJECT AREA NMIBER ONE - CALIF: R-10 Beginning at the intersection of the Westerly prolongation of the South line of Athol Street with the West line of "EII Street; thence .Northerly along said West line of "E" Street` to a point 196.15 feet South of the center line of Second. Street; , .thence Easterly and parallel to the center line of Second. Street to .the West line of Stoddard Avenue; thence Northerly. along the West. line of Stoddard Avenue and the Northerly prolongation. of the West line of Stoddard Avenue to the. North line of Second Street; thence Easterly along the North line of Second Street to the West line of Lot 1, Block 13 of the City of San Bernardino,. as per . plat recorded in Book 7 of Maps at .Page 1, Records of the County Recorder of Un. Bernardino County; . thence .Northerly along the West line of said Lot 1, a distance of 253:15 feet; thence Easterly and parallel to the North line of Second Street, a distance of 150 feet to the West line of "D" Street; thence Northerly along the West .line of I'D" Street to the Westerly prolonga- tion of the North line of Lots 7 and B of the Keir's Subdivi- sion as per plat recorded in Book 13 of Maps, at page 14, Records of the County Recorder of San Bernardino County; thence Easterly along the Westerly prolongation of the .North line of said Lots 7 and 8, the North line of said Lots 7 and 8, and the Easterly prolongation of the North line of said Lots 7. and 8, to the East line of Keir Place or Common Alley Way -as shown on the map of .."id Keir's Subdivision; thence Northerly along the East line of said Keir Place or Common Alley Way to a point 6. feet South of the North line- of said Keir's Subdivision; thence Easterly and p=allel to the. North. line. of said Keirls :Subdivision, 21 feet, to a point of .43.02 • 33 CITY OF SAN IBERNARDINO REDEVELOPMENT AGENCY MERGED,,AMENDED,AND RESTATED REDEVELOPMENT PLAN Meadowbrook Project Area No. 1 continued feet:West of the East line of Lot 4p Block 19 of said City of . San Bernardino; thence Northerly and parallel to the East line of said Lot 4 to a point 66.10 feet South of the center line of .Court Street; thence Easterly and parallel to the center line of Court. Street 43.02 feet to the East line of said Lot, 4; thence Southerly along the East line of said Lot 4 to a .point 55 feet South of the South line of Court Street; thence Easterly and parallel to the South line of Court Street to a point 77.33 feet West of the East line of Lot 3 of. said` Block 19; ,thence Southerly and parallel to the East line of said Lot 3 to a point 130 feet North of the North line of Third Street; thence Easterly and parallel to the North line of Third Streetr . a distance of 39.66 feet; thence Northerly and parallel. to the East line of said Lot 3 to a point 175 feet North of the North line of Third' Street; thence Easterly and parallel to the North line of Third Street to .the Nest line of lot 2. 'of said :Block 10; thence Southerly along the West :line of said Lot 2 to a point 130 feet North of the North line of Third Street;, thence Easterly and parallel to the North line of Third Street. to a point 27 feet East of the West; line` of Lot. l of said Block 19; thence Southerly and parallel to the West line .of said. Lot l to a point 150 feet South of the South line of Court Street thenoe Easterly and parallel to the South line of Court Street to the East line of Arrowhead Avenue; thence Southerly along the East line of Arrowhead Avenue to the South line, of Third Street;. thence Westerly along the South line of Third Street to a point 101.25 feet. East of the Northwest corner of Lot 59 Block 14 of the said City of San Bernardino; thence Southerly and parallel to the East line of "D" 'Street to a point 7 inches • 34 CrfY OF SAN BERNARD1NO REDEVELOPMENT AGENCY MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN Meadowbrook Project Area No. 1 continued South of the South line of said Lot 5; thence Easterly ana parallel to the South line of said Lot. 5 to a point 117.71 feet West of the :East line of Lot .4 of said Block 14; thence South to a point 1.8 feet South of the South line of said Lot 5•, thence Easterly and parallel to the South line of said Lot 5 to a point 81 feet Weat of .the East line of said Lot. 4; thence North 1.8 feet to the South line of said Lot 5; thence" Eaaterly along the South line of said Lot 5 t the Southeast corner of .said Lot 5; thence Southerly along the West line of Lot. 7 of seid. Block 14 .to a point .25 feet North of the South- west corner.of. said Lot 7, said point being on the North line of the Pacific Electric Railway Company's Right-of-Way; thence Easterly along the North line of the Pacific Electric Railway Company's Right-of=Way to the East line of Arrowhead Avenue; thence .3outherly. along the `Eas't line of Arrowhead Avenue to= the North line of Second Street; thence Easterly along the.,. North line of Second Street, a distance 'of 300 feet; thence Southerly to a point on the South line of Second Street 300 feet East of the Northwest corner of Lot 5, Block 4 of the ' said City of San Bernardino; . thence Southwesterly to "a point lying 50 feet South of the. South fine of Second Street and : 184 feet. Edst of the East line of Arrowhead Avenue; thence Southwesterly to a point on the East line of Arrowhead Avenue 225 feet South .of the Northwest corner of said Lot 5; thence Southerly along the East line .of Arrowhead Avenue to the .North line of King Street;thence Easterly along the North line of Ring Street to the West line of Mountain View Avenue; thence Northerly along the West line of Mountain View Avenue -to the North line of Second Street; thence Easterly along the North line of Second Street to the center 'line of Sierra Way; thence Southerly,along the center line of Sierra Way. to the North line, of The .Atchison, . Topeka and Santa. Fe .Railway Company's Right-of-Way; thence Westerly along the North line of said Right-of-Way to the West line of Mountain View Avenue (closed by City of .San Bernardino, Resolution No. 1099); thence Northerly along. the West line of said Mountain View Avenue to .the.:South line of Rialto Avenue; thence Westerly along the South line of Rialto Avenue to the East line of Arrowhead. Avenue; thence Southerly along the East line of Arrowhead Avenue to the Easterly prolongation of the South line of Athol Street, thence Westerly along the Easterly prolongation of the South line, the South line and the Westerly prolongation of the South line of Athol, Streeir to the .point of beginning.. • 35 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN The legal description of the boundaries of the Central City Redevelopment Project Area No. 1 is as follows: CENTRAL CITY NO. 1 CALIF. R-79 Legal Description Those portions of Blocks 4, 9, 10, 11 , 12,. 13, 19, 20, 21 , 22, 23 and 24 of the CITY OF SAN BERNARDINO, County of San Bernardino, State of California, per map recorded in Book 7 of Maps, Page 1 ; and WATER'5 SUBDIVISION per map recorded in Book 6 of Maps, Page 47; and J.M. HURLEY SUBDIVISION per map recorded in Book 13 of Maps , page 10; and KEIR'S SUBDIVISION per map recorded in Book 13 of Maps, Page 14; and HARRIS SUBDIVISION per map recorded in Book 16 of Maps, Page 8; and J.B. GOODLETTS SUBDIVISION of Block A per map recorded in Book 8 of Maps, Page 5; and FARNSWORTH'S SUBDIVISION of Lots 1 and 8, Block 20 per map recorded in Book 7 of Maps, Page 16 records of said County described as follows: • 36 RIEDEVEIL0PMENll'AGENCY OF THE CXTY OF SAN BERNARVIN(I MERGED,AMENDED„AND RESTATED REDEVELOPMENT P4 ,",!, Central City Redevelopment Project Area No. 1 Continued Beginning at a point in the West line of E Street 196.75 feet South of the center line of 2nd Street 82.5 feet wide, said point lying on the boundary of the Meadowbrook Project Area No. 1 , Calif. R-10; thence Northerly along the said West line of E Street 82.5 feet wide to the South line of 2nd Street; thence Westerly along said South line of 2nd Street to the West line of H Street 82.5 feet wide; thence Northerly in a direct line to the Southeasterly corner of Lot 15 in Block 9 of said WATER'S SUBDIVISION, said corner being the Northwest corner of said 2nd and H Streets; thence along the Southerly REDEVELOPMENT AGENCY OF THE CffY OF SAN BERNARDINO MERGED,AMENDED,,AND RESTATED REDEVELOPMENT PLAN Central City Redevelopment Project Area No. 1 Continued tine of said Lot 15 and the North line of said 2nd Street South 890 32` 25" West 35.00 feet to the Easterly right-of-way line of State Route VIII-43 (Freeway- U.S. 395) ; thence along said State right-of- way first North 340 55' 35" West, 51 .26 feet; thence North 150 17' 45" West 67.61 feet; thence North 80 54' 57" West 187.47 feet; thence North 130 39' 56" West 312.40 feet to a point in the Northerly line of Lot 3 in Block 9 of said WATER'S SUBDIVISION, distant thereon South 890 38' '17" West 32.66 feet from the Northeasterly corner of said Lot 3; thence Northerly in a direct line to a point in the North line of 3rd Street 82.5 feet -wide, said point being distant South 890 38' 17" West 194.86 feet from the intersection of the North line of said 3rd Street with the West line of H Street; thence North 80 48' 51" West 282. 72 feet; thence North 110 45' 01"West 292.84 feet; thence North 740 14' 53" East 121 .17 feet to a point in the South line of 4th Street 82,5 feet wide, said point being distant 180 feet Westerly from the intersection of said South line to said West line of H Street; thence Easterly along said South line to said West line; thence Northerly along the said West line of H Street to the North line of said 4th Street, which represents the Easterly boundary of Freeway U.S. 38 F� REDEVELOPMENT AGENCY Of THE 0TY7 OF SAN BERNARDINO MERGED,AMENDED„AND RESTATED REDEVELOPMENT PLAN Central City Redevelopment Project Area No. 1 Continued 395 between 2nd Street and 4th Street; thence leaving said State right-of-way Easterly along said North line of 4th Street to the East line of said E Street; thence South along said East line of E Street to the North line of Court Street 56.16 feet wide; thence East along said North line of Court Street to the- West line of D Street 82.5 feet wide; thence directly to the Northeast corner of D Street and Court Street 82.5 feet wide; thence Easterly along the North line of Court Street to the East line of Arrowhead Avenue 82.5 feet wide; thence South along said East line of Arrowhead Avenue to said boundary of the Meadowbrook Project Area No. 1; thence along said boundary first West along a line parallel to and 150 feet South of the South line of said Court Street 82.5 feet wide a distance of 204.9 feet to a point on a line 27 feet East of the West line of Lot 1 , Block 19, of said CITY OF SAN BERNARDINO; thence North along said 27 foot line a distance of 23 feet more or less to a point on a line 130 feet North of the North line of 3rd Street; thence West along said 130 foot line a distance of 176 feet more or less to the West line of Lot 2 of said Block 19; thence North along said West line of Lot 2 a distance of 45 feet to a line 175 feet North of the North line of 3rd Street; thence West along said 175 foot line a distance of 37.66 feet; thence South 45 feet to a line ` 39 IRIEKJ':IV"IELVIWUIEWIr AGEIt'd� Ur TIMy,E CT14 (OF SA4 I6LRNAIRD N'O VIERGEV. /M(AENIVEI➢, ,2[Mr- RIEST/A'T IEIfD IRIEIfMEVIN OPMEINT P0.Af" Central City Redevelopment Project Area No. 1 Continued 130 feet North of said North line of 3rd Street; thence West . along said 130 foot line a distance of 39,66 feet to a point on a line 70.58 feet East of the West line of Lot 3 of said Block 19; thence North along said 70.58 foot line a distance of 72 feet more or less to a line 55 feet South of the South line of Court Street; thence West along said 55 foot line a distance of 70.58 feet to the West line of said tot 3; thence North along said .West line of Lot 3 a distance of 30 feet more or less to a line 66.10 feet South of the center line. of Court Street; thence' West along said 66.10 foot line a distance of 44 feet more or less ; thence South a distance of 28 -feet more or less to a line 200 feet North of said North line of 3rd Street; thence West along said 200 foot line a distance of 21 feet more or less to the East line of Keir Place or Common Alley as shown on said KEIR'S SUB- DIVISION; thence South along said East Alley line a distance of 82.8 feet more or less to the Easterly prolongation of the North line of Lots 7 and 8 of said KEIR'S SUBDIVISION; thence West along said Easterly prolongation, said North line of Lots 7 and 8, and the Westerly prolongation thereof a distance of 167.5 feet to the West Tine of D Street; thence South along the West line of D Street to a line 44 feet South of the. North line of Lot 1 > Block 13., of said CITY OF SAN BERNARDINO; thence West along said 44 foot line a distance of 150 feet to the West line of said Lot • 40 REDEWELOPIpMEIN7 AGENCY OF"MIHE GUTTY Of SAN IBIERNAIRDIIIWG MERGED.AMENDED.,AND RESTATED IRIEDEWIEL®PIAMIEWA PLAN Central City Redevelopment Project Area No. 1 Continued . 1 ; thence South along said West line of Lot to the North line of 2nd_Street; thence West along said North line of 2nd Street to the Northerly prolongation of the West line of Stoddard Avenue 34 feet wide; thence South along said Northerly prolongation and the Westerly line of Stoddard Avenue to a point 196.75 feet South of the tenter line of 2nd Street; thence West along said 196.75 foot line to a point of beginning, said line being the northerly and westerly boundaries of said Meadowbrook Project Area No. 1 , Calif. R-10. ® 41 REDEVELOPMENT AGENCY OF THE c!f ry OP SAN BERNARDINO MERGED,AMENDED,ANiV (RESTATED(REDEVELOPMENT PLAN The legal description of the boundaries of the Central City North Redevelopment Project Area is as follows: Those portions of Blocks 19, 20, 25, 26, 27, 28, 29, 30, 35, 36, 37, 38, 39, 40, 41 , 42, 43, 44, 45, 46, 51 , 52, 53, 54 and 55 of the City of San Bernardino, County of San Bernardino, State of California, as per neap recorded in Book 7 of Maps. Page 1 ; and Norton and Hay Subdivision as per map recorded in Book 16.of Maps, Page 7; and Sub of Block 55, City of San Bernardino, as per_ maD recorded in Book 3 of Maps. Page 30; and Porter's Subdivision as per map recorded in Book 2 of !taps , Page 26; and J. S. Bright Sub- division as per map recorded in Book 4 of Maps, Page 4; .and _ Bennetts Subdivision as per Map recorded in Book 3 of Maps , Page 15; and Ward and Courtney Subdivision as per map recorded in Book 3 of Maps, Page 25; and Kingman - Hampson Subdivision as per map recorded in Book 3 of Maps, Page 81 , records of said County des- cribed as follows: Beginning at the intersection of the Easterly prolongation of the North tine of Court Street, 82.50 feet wide and the East line of Arrowhead Avenue 82.50 feet wide; thence West along said East- erly prolongation and the North line of said Court Street to the East line of "D" Street, 82.50 feet wide; thence Westerly in a straight line to the Northwest corner of "0" Street and Court Street, 56.16 feet wide; thence West along the North line of Court Street to the East line of "E" Street 82.50 feet wide; thence North along the East line of said "E" Street to the Northeast corner of said "E" Street and Fourth Street, 82.50 feet wide; thence West along the _North line Sajg,EDpCI,gAtrp,Pf,,tn t&P4,11r_ West line of "H"-Street; thence North along the West line of sai( "H" Street a distance of 48.00 feet to the Right of Way line of State Route VIII - 43 (Freeway U.S. 395) ; thence along said Right of-Way line the following courses and distances; thence Sooth 89°34'17" West a distance of 251.15 feet; thence Northerly along the arc of a curve concave Northeasterly with a radius of 150.00 feet a distance of 83.37 feet; thence North 17015'04" West a tn3'tance oT )M.43 fleet to the South line of Kingman Street; ther North 07D28'03" West a distance of 40.30 feet to the North line of said Kingman Street; thence North 0027'47" West a distance of 130.00 feet; thence Northerly in a direct line to a point on the North line of Lot 41 of the Ward and Courtney Subdivision as per plat recorded in Book 3 of Maps, page 25, records of the County Recorder of said County, said point being 370.00 feet West of the East line of said "H" Street; thence North 0027'54" West a • 42 REDEVELOPMENT AGENCY Of NNE ORY CIF SAN BERNARDINO MERGED„AMENDED„AND RESTATED REDEVELOPMENT PLAN Central City North Redevelopment Project Area Continued distance of 143.71 feet to the South line of Spruce Street, 50.01 feet wide; thence North 05 43'35" East a distance of 173.52 feet to the beginning of a tangent curve concave Southeasterly and having a radius of 160.00 feet; thence Northeasterly along said curve thru a central angle of 79024147" a distance of 221 .77 feet; thence North 85008102" East a distance of 99.66 feet to the South line of Sixth Street 82.50 feet wide; thence East along the South line of said Sixth Street to the West line of said "H" Street; thence leaving said Right-of-Way line of Freeway U.S. 395 North along the West line of said "H" Street to the North line of said Sixth Street; thence West along the North line of said Sixth Street to the Easterly Right-of-Way line of said U.S. 395; thence North along said Easterly Right-of-Way line of U.S. 395 Freeway and following all its various courses and distances to the North line of Eighth Street 82.50 feet wide; thence East along the Nort line of Eighth Street td the Northeast corner of said Eighth Street and Arrowhead Avenue; thence South along the East line of said Arrowhead Avenue to the point of beginning. e 43 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN The legal description of the boundaries of the Central City South Redevelopment Project Area is as follows: "AII-that certain real property situated in the City of San Bernardino, County of San Bernardino, State of California, and being more particularly described as follows: Those portions of Blocks 5, 6, 7 and 8, City of San Bernardino, as per plat recorded in Book 7 of Maps, Page 1; and Blocks 9, 10, 11, 12, 28, 29, 30, 31 and 54, Rancho San Bernardino, as per plat recorded in Book 7 of Maps, Page 2; and Waters Subdivision, as per plat recorded in Book 6 of Maps, Page 47; and Walkinshaw Subdivision, as per plat recorded in Book 24 of Maps, Page 40; and Walkinshaw Subdivision No.2, Tract No. 1728, as per plat recorded in Book 24 of Maps, Page 3; and Liberty Subdivision, Tract No. 1765, as per plat recorded in Book 27 of Maps, Page 45; and the Pepper' s Subdivision, as per plat recorded in Book 17 of Maps, Page 8; and F. J. Hall's Subdivision, as per plat recorded in Book 6 of Maps, Page 45; and J.W. Wlater's Subdivision, as per plat recorded in Book 7 of Maps, Page 38; and Brown and Waterman Subdivision, as per plat recorded in Book 16 of Maps, Page 31; and Sunnyside Addition, as per plat recorded in Book I of Maps, Page 35; and White's Subdivision, as per plat recorded in Book 5 of Maps, Page 67; and White's Subdivision No. 2, as per plat recorded in Book 23 of Maps, Page 31; and Urbita, as per plat recorded in Book 3 of Maps, Page 54; and Tract No. 5907, as per plat recorded in Book 79 of Maps, Pages 51 and 52, all being records of the county of San Bernardino, State of California, described as follows: BEGINNING at the intersection of the West line of"E" Street, 82.50 feet wide, with the South line of Second Street, 82.50 feet wide; thence South along the West line of said "E" Street to the Westerly prolongation of the South line of Athol Street, 60.00 feet wide; thence East along said Westerly prolongation, the South line of said Athol Street, and the Easterly prolongation thereof, to the East line of Arrowhead Avenue, 82.50 feet wide; thence North along the East line of said Arrowhead Avenue to the South line of Rialto Avenue, 82.50 feet wide; thence East along the South line of said Rialto Avenue to the West line of Mountain View Avenue (closed by City of San Bernardino, Resolution No. 1099); thence South along the West line of said Mountain View Avenue to the North line of the Atchison, Topeka and Santa Fe Railway Company's right-of-way, 50.00 feet wide; thence Southeasterly along the North line of said Atchison, Topeka and Santa Fe Railway Company's right-of-way to the East line of Sierra Way, 82.50 feet wide; thence South along the East line of said Sierra Way to the Easterly prolongation of the South line of Cluster Street, 60.00 feet wide; thence West along said Easterly prolongation and the South line of said Cluster Street to the East line of Arrowhead Avenue, 82.50 feet wide; thence South along the East line of said Arrowhead Avenue to the South line of Esperanza Street, 40.00 feet wide; thence East along the South line of said Esperanza Street to the Southwest corner of Lot 7, Block"A", Case's Acres, Tract no. 1878, as per plat recorded in Book 27 of Maps, Page 23, records of said County; thence East along the South line of said Lot 7 and the Easterly prolongation thereof to the East line of Lot 4, Block 31, said Rancho San Bernardino, to the Northwesterly right-of-way line of the Twin and Warm Creek Flood Control Channel; thence Southwesterly and South along the Northwesterly and West right-of-way line of said Twin and Warm Creek Flood Control Channel to the South line of Lot 45, Block 54, said Rancho San Bernardino, which is 400.00 feet West of the Southeast corner of said Lot 45; thence West along the South line of said Lot 45 to a point which is North 89° 54' 30" East 1,170.42 feet from an intersection of the South line of said Lot 45 with the East line of said "E" Street; thence North 000 10' 30" East to a point which is South 000 10' 30" West 580.80 feet from the centerline of Orange Show Road; thence North 890 16' 30" East 300.04 feet; thence North 000 10/30" East 539.55 feet to the South line of Orange Show Road; thence West along the South line f •' 44 REDEVELOPMENT AGENCY OF THE CrTN OF SUN BiERNA RDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN Central City South Redevelopment Project Area Continued of said Orange Show Road to the Southerly prolongation of the West line of said Arrowhead Avenue; thence North 00° 08' 50" East along said Southerly prolongation and the West line of said Arrowhead Avenue to appoint which is North 000 08' 50" East 684.71 feet from the centerline of said Orange Show Road; thence South 89° 16' 55" West to the East line of said "E" Street; thence North along the East line of said "E" Street to the North right-of-way line of said Warm Creek Flood Control Channel with the West line of said "E" Street; thence Southwesterly along the Northwesterly right-of-way line of said Warm Creek Flood Control Channel to the East right-of-way line of the Lytle Creek Flood Control Channel; thence Northeasterly, Northerly and Northwesterly along the East right-of-way line of said Lytle Creek Flood Control Channel to the Southeasterly line of Inland Center Drive, 60.00 feet wide, formerly known as Colton Avenue; thence Southwesterly along the Southeasterly line of said Inland Center Drive and the Southwesterly prolongation thereof to the Southeasterly prolongation of the Northeasterly line of the San Bernardino Freeway, Interstate 15; thence North 210 10' 22" West along said Southeasterly prolongation and Northerly along the East line of said Interstate 15, following its various courses, to a point 95.00 feet right of Engineer's Station 320+64.00; thence leaving said East line Northerly to a point 99.00 feet right of Engineer's Station 326+75.55;thence Northerly along the East line of said Interstate 15 to the South line of Mill Street, 82.50 feet wide; thence Northwesterly to the intersection of the North line of said Mill Street with the East line of said interstate 15; thence Northerly along said East line, following its various courses to a point 95.00 feet right of Engineer's Station 334+12.00; thence leaving said East line Northerly to appoint 99.00 feet right of Engineer's Station 337+70.00; thence Northerly along the East line of said Interstate 15, following its various courses, to the South line of said Second Street, y" 82.50 feet wide; thence East along the South line of said Second Street to the POINT OF BEGINNING. • 45 REDEVELOPMENT AGENCY OF THE CrTY OF SAN BERNARDINO IWERGED„AMENDED,AND RESTATED REDEVELOPMENT PLAN The legal description of the boundaries of the Central City East Redevelopment Project Area is as follows: "All that certain real property situated in the City of San Bernardino, County of San Bernardino, State of California, and being more particularly described as follows : Those portions of Blocks 2 , 14 , 15 , 16 , 17 , 18 , 31, 32 , 33 , 34 , 47 and 48 of the City of San Bernardino, as per plat recorded in Book 7 of Maps , Page 1; and Blocks 3 , 4 , 5 and 6 , of the Rancho San Bernardino, as per plat recorded in Book 7 of Maps , Page 2 ; and Fifth Street Place Subdivision, Tract No. 2030, as per plat recorded in Book 29 of Maps , Page 49 ; and Fifth Street Place Unit No. 2 , Tract No. 2275, as per plat recorded in Book 32 of Maps , Page 67; and Paine Subdivision , Tract No. 2063 , as per plat recorded in Book 29 of Maps, Page 70; and Amended Baldridge Subdivision, as per plat recorded in Book 17 of Maps , Page 38 ; and Cypress Tract, as per plat recorded in Book 3 of Maps , Page 85 ; and Meadowbrook Park Subdivi- sion, as per plat recorded in Book 17 of Maps , Page 14; and Wozencraft Place, as per plat recorded in Book 5 of Maps , Page 47; and Bedford. Brothers Subdivision, as per plat recorded in Book 3 of Maps , Page 84 , all being rec- ords of the County of San Bernardino, State of California, described as follows: BEGINNING at the intersection of the East line of Arrowhead Avenue , 82 .50 feet wide, with the South line of Third Street, 82 .50 feet wide; thence Westerly along the South line of Third Street to a point 101.25 feet East of the Northwest corner of Lot 5, Block 14 of the said City of San Bernardino; thence Southerly and parallel to the East line of "D” Street to a point 7 inches South of the South line of said Lot 5; thence Easterly and parallel to the South line of said Lot 5 to a point 117.71 feet West of the East line of Lot 4 of said Block 14 ; thence South to a point 1. 8 feet South of the South line of said Lot 5 ; thence Easterly and parallel to the South. line of said Lot 5 to a point 81.00 feet West of the East line of said Lot 4; thence North 1. 8 feet to the South line of said Lot 5; thence Easterly along the South line of said Lot 5 to the Southeast corner of said Lot 5; thence South- erly along the West line of Lot 7 of said Block. 14 to a point 25.00 feet North of the Southwest corner of said 46 IRIEDEVELOPIH'EINV AGENICYV OF THE CITY OF SAN BFRN.ARIAN0 MERGED,AMENDED,AINI6 RESTATED REDEVELOPMEN7 PLAN Central City East Redevelopment Project Area Continued Lot 7, said point being on the North line of the Pacific Electric Railway Company's right-of-way; thence Easterly along the North line of the Pacific Electric Railway Com- pany's right-of-way to the East line of Arrowhead Avenue; -thence Southerly along the East line of Arrowhead Avenue to the North line of Second Street; thence Easterly along the North line of Second Street, a distance of 300.00 feet; thence Southerly to a point on the South line of Second Street 300.00 feet East of the Northwest corner of Lot 5, Block 2 of the said City of San Bernardino; thence South- westerly to a point lying 50 .00 feet South of the South line of Second Street and 184.00 feet East of the East line of Arrowhead Avenue; thence southwesterly to a point on the East line of Arrowhead Avenue 225.00 feet South of. the Northwest corner of said Lot 5; thence Southerly along the East line of Arrowhead Avenue to the North line of King Street; thence Easterly along the North line of King Street to the West line of Mountain View Avenue; thence Northerly along the West line of Mountain View Avenue to the North line of Second Street; thence Easterly along the North line of Second Street to_the East line of Lugo Avenue, 50.00 feet wide; thence North along the East line of said Lugo Avenue to the South line of said Third Street; thence East along the South line of said Third Street to the center- line of Waterman Avenue, 82 .50 feet wide; thence North along the centerline of said Waterman Avenue to the North line of Seventh Street, 82.50 feet wide; thence West along the North line of said Seventh Street to a point 22.00 - feet East of the Southwest corner of Lot 6,. Block 3 , said Rancho San Bernardino; thence North parallel with the West line of said Lot 6 to the North line .of said Lot 6; thence West along the North line of said Lot 6 to the Southeast corner of Lot 4 , Block 3 , said Rancho San Bernardino; thence Northwesterly to a point on the South line of Ninth Street, 82. 50 feet wide, which is 167.19 feet West of the North- east corner of said Lot 4; thence West along the South line of said Ninth Street to the East line of the West 2 acres of said Lot 4 ; thence South along the East line of the West 2 acres of said Lot 4 to the South line of said Lot 4; thence West along the South line of said Lot 4 to the Northwest corner of Lot 7, Block 3, said Rancho San Bernardino; thence South along the West line of said Lot 7 to the North line of said Seventh Street; thence West along the North line of said Seventh Street to the West line of Sierra Way, 82.50 feet wide; thence South along • 47 IREDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN Central City East R_edevelopment Project Area Continued the West line of said Sierra Way to the North line of Victoria Street 35.00 feet wide; thence West along the North line of said Victoria Street, and the Westerly pro- longation thereof, to the West line of Mountain View Ave- nue, 82.50 feet wide; thence South along the West line of said Mountain View Avenue to the North line of Lot 1 , Block 47, said City of San Bernardino; thence West along the North line of said Lot 1, and the North .line of Lots 2 , 3 and 4 , Block 47, said City of San Bernardino, to the East line of said Arrowhead Avenue; thence South along the East line of said Arrowhead Avenue to the POINT OF BEGIN- NING. 48 REDEVELOPMENT AGENCY OF THE OPTY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN The legal description of the boundaries of the Southeast Industrial Park Project Area is as follows: "All that certain real property situate in the City of San Bernardino, County of San Bernardino, State of California, and being more particularly described as follows : Those portions of Blocks 54, 55 , 69 and 72 , of the Rancho San Bernardino, as per plat recorded in Book 7 of Maps , Page 2 ; and Victoria Subdivision, Tract No. 2948 , as per plat recorded in Book 40 of Maps , Page 94; and Victoria Farms Unit No. 2, Tract No. 2038, as per plat re- corded in Book 29 of Maps , Pages 51 and 52; and Tract No. 2424 , as .per plat recorded in Book 34 of Maps , Page 60 ; and Parcel Map No. 1455 , as per plat recorded in Book 11 of Parcel Maps , Page 90 ; all being records of the County of San Bernardino, State of California, described as fol- lows PARCEL NO. 1 BEGINNING at the intersection of the South line of Lot 45 , Block 54 , said Rancho San Bernardino, with the West right-of-way line of the Twin and Warm Creek Flood Control Channel, being a point 400 .00 feet West of the Southeast corner of said Lot 45; then South along the West right-of-way line of said Twin and- aim Creek Flood Con- trol Channel to the South line of the North 594.00 feet of Lot 24 , Block 54, said Rancho San Bernardino; thence East along the South line of the North 594.00 feet of said Lot 24 to the East fine of said Lot 24; thence North 99 .00 feet along the East line of said Lot 24 to the South line of the North 495.00 feet of Lot 25, Block 54, said Rancho San Bernardino; thence East along the South line of the North 495..00 feet of said Lot 25 to the centerline of Waterman Avenue; thence South along the centerline of said Waterman Avenue to the North line of the Redlands Freeway, Interstate 10 ; thence West along the North line of said Interstate 10 , following its various courses , to the most Southwesterly corner of Parcel No. 4, said Parcel Map No. 1455 ; thence Northwesterly along the Southwesterly line of said Parcel No. 4 and the Southerly line. of Parcel No. 5, said Parcel Map No. 1455 to the East Line of Hunts • 49 IREDIEMVIELO PIVEINT AGENCY OF THE CITY OF SAN BERNARDINO IMERGED,.AMEINDIED,AIND RESTATED REDEVELOPMENT PLAN ` Southeast Industrial Park Project Area Continued Lane; thence Southerly. along the Easterly line of said Hunts Lane to the Easterly prolongation of the Southerly line of "E" Street. Extension; thence Westerly and Northerly along the said.' Easterly prolongation, the said Southerly line and the Westerly line of said "E" Street Extension and "E" Street, following its various courses, to the North line of Fairway Drive, formerly known as Colton Avenue; thence West along the said North line, of said Fairway Drive to the West line of the San Bernardino Freeway, In- terstate 15; thence North along the West line of said In- terstate 15 to the South line of Lot 15 , Block 54, said Rancho San Bernardino; thence West along the -South line of said Lot 15, Block 54, to the West line of Parcel No. 2 , Parcel Map No. 1972, as per plat recorded in Book 16 of Parcel Maps , Page 47, records of said County; thence North along the West line of said Parcel No. 2 and North along the West line of Parcel No. 1, said Parcel Map No. 1972 , to the Northwest corner of said Parcel No. 1; thence North along the West line of the East one-half of the Northeast one-quarter of said Lot 15; Block 54i to the North line of said Lot 15 ; thence West along the North line of said Lot 15 to the Southwest corner of Lot 22, Block 54, said Rancho San Bernardino; thence Northeasterly .to a point in the Southwesterly line of the San Bernardino Freeway, Interstate 15, which point is 100 .00 feet North- westerly along said Southwesterly line from the Northwest- erly line of Orange Show Road, 100.00 feet wide; thence Southeasterly along said Southwesterly line to the North- westerly line of said Orange Show Road; thence Southwest- erly, Southeasterly and Northeasterly along the Northwest- erly, Southwesterly and Southeasterly lines of said Orange Show Road, following its various courses , to the Southerly line of "F" Street; thence Easterly along the said South- erly line to the Westerly line of the said San Bernardino Freeway; thence Southerly along the said Westerly line to the Westerly prolongation of the North line of Parcel No. 2 , Parcel Map No. 773, as per plat recorded in Book 7 of Parcel Maps ' Page 65, records of said County; thence East along said Westerly prolongation and along the North line of said Parcel No. 2, to the West line of "E" Street; thence North along the West line of said "E" Street to the Westerly prolongation of the South line of Century Avenue, 60 .00 feet wide; thence East along said Westerly 50 REDEVELOPMENT AGEMCN 011"THE CIGN MERGED,AMENDED,AND RESTATED REIN I`I k-Phk N T i^I 6 i Southeast Industrial Park Project Area Continued prolongation and along the South line of said Century Ave- nue to a point on a line which is parallel with and 800 .00 feet East of`the East line of said "E" Street; 82 .50 feet wide; thence North parallel with said East line of "E" Street to the South line of said Lot 45 , Block 54, Rancho San Bernardino; thence East along the South line of said Lot 45 , Block 54, to the POINT OF BEGINNING. PARCEL NO. 2 BEGINNING at the intersection of the centerline of Waterman Avenue with the South line of the Santa Ana River Flood Control Channel right-of-way; thence East along the Easterly prolongation of said South line and continuing Northeasterly along the Southeasterly line of said Santa Ana River Flood Control Channel right-of-way, following its various courses , being along a line 400 .00 feet Southeasterly of the centerline of said right-of- way to the East line of the West 840 .00 feet of Lot 8, said Block 72; thence North to the North line of said Lot 8 ; thence East along the North line of said Lot 8 , and Lot 7 , said Block 72 , to the said Southeasterly line of said Santa Ana River Flood Control Channel right-of- way; thence Northeasterly along said Southeasterly line, following its various courses , to its intersection with • line which bears North 15 031 ' East and passes through • point in the South line of Lot 10 , said Block 72 , said point being 829 . 67 feet West from the Southeast corner of said Lot 10; thence North 15°31 ' Fast along said line to the Southwesterly line of the Mission Channel Flood Control right-of-way; thence Southeasterly along the said Southwesterly line of the said Mission Channel Flood Control right-of-way to the West line of Lot 11, Block 72 , said Rancho San Bernardino; thence South along the West line of .said Lot 11 to the South line of said Lot 11; thence East along the South line of said Lot 11 and the South line of Lot 12 , Block 72, said Rancho San Bernardino, and the Easterly prolongation of the South line of said Lot 12 to the East line of Tippecanoe Avenue; thence South along the East line of said Tippecanoe Avenue to the East- erly prolongation of the North line of Loma Linda Gardens , Tract No. 2743, as per plat recorded in Book 38 of Maps, Page 47 , records of said County; thence West along said Easterly prolongation and West along the North line of REDEVELOPMENT AGENCY OF THE CRY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN Southeast Industrial Park Project Area Continued said Tract No. 2743 to the West line of said Tract No. 2743 ; thence South along said West line to the South line of said Tract No. 2743; thence East along said South line to the West line of said Tippecanoe Avenue; thence South along the West line of said Tippecanoe Avenue to the North line of the Redlands Freeway, Interstate 10; thence West along the North line of said Interstate 10, following its. various courses, and the Northwesterly .pro- longation thereof, bearing North 76 050112" West, to the centerline of said Waterman Avenue; thence Southwesterly to a point on the North line of said Interstate 10 , being 237. 83 .feet left of Engineer's Station 173+69.75; thence Northeasterly along the North line of said Interstate 10 to the centerline of said Waterman Avenue; . thence North. along the centerline of said Waterman Avenue to the POINT OF BEGINNING. PARCEL NO. 3 BEGINNING at the Southwest corner of Lot 11, said Block 72, said Rancho San Bernardino; thence North along the West line of said Lot 11 to the Southwesterly line of the- mission Channel Flood Control right-of-way; thence Northwest along the said Southwesterly line of Mission Channel Flood Control right-of-way to its inter- section with a line which bears North 15 031' East and passes through a point in the South line of Lot 10 , said Block 72, said point being 829 .67 feet West from the Southeast corner of said Lot 10 ; thence North 15 031' East along said line to a point which is 1,302.00 feet meas- ured along said line from the said South line of Lot 10; thence North 50°42 ' East to a line which bears South 82 049 ' West and passes through a point in the East. line of said Lot 11, said point being 1,891.95 feet North from the Southeast corner of said Lot .11; thence North' 82" 49 ' East to the said Southeasterly line of the Santa Ana River Flood Control Channel right-of-way; thence Northeasterly along said Southeasterly right-of-way line, following its various courses , to its intersection with .a line which bears North 32°26100" East and passes through a point which is North 00°38130" East 488.01 feet and South 89°21130" East 185 .00 feet from the intersection of the centerlines of Tippecanoe and San Bernardino Avenues ; thence Southerly to the Southwesterly corner of the most Northerly 25.00 feet of Parcel No. 1, said Tract No. 2038; thence East along the South line of the said most 52 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDIN0 MERGED,AMENDED,AND RES'TA'TED REDEVELOPMENT PLAN Southeast Industrial Park Project Area Continued Northerly 25.00 feet of Parcel No. 1 to the Northeasterly line of said Parcel No.1; thence Southeasterly along the Northeasterly line of said Parcel No. 1 to the Northwest- erly line of Riverside Street, 50.00 feet wide, being the' Northwesterly line of said Tract No. 2948; thence North- easterly along the Northwesterly. line of said Riverside Street; and Northeasterly along the Northwesterly line of said Tract No. 2948 , following its various courses , to the West line of Mountain View Avenue; thence South along the West line of said Mountain View Avenue to the North line of Lot 148, Tract No. 1892, Victoria Farms Unit No. 1, as per plat recorded in Book 27 of Maps , Page 27 , rec- ords of said County; thence West along the North line of said Lot 148 to the -East line of Lot 92, said Tract No. 2948; :thence South along the East line of said Lot 92 and Lot 125, said Tract No. 2948, to the North line of Wallace Court, 50 .00 feet wide; thence West along said North .line to the East line of Lot 121, said Tract No. 2948 ; thence North along the East line of said Lot 121 to the South line of Lot 96 , said Tract No. 2948; thence West along the South line of said Lot 96 and West along the South line of Lots 97 to 108, inclusive, said Tract No. 2948, and the Westerly prolongation thereof to. the West line . of Shedden Drive, 50 .00 feet wide; thence North 10 .00 feet along the West line of said Shedden Drive to the South line of Lot 168, said Tract No. 2948; thence West along the South line of said Lot 168 to the West line of said Lot 168; thence North 20 .00 feet along the West line of said Lot 168 to the South line of Lot 172 , said Tract No. 2948; thence West along the South line of said Lot 172 and West along the South line of Lots 173 to 183, inclusive, said Tract No. 2948 , to the East line of Richardson Street, 80.00 feet wide; thence South along the East line of said Richardson Street to the North line of Victoria Avenue , 80.00 feet wide; thence continuing South along the East line of Richardson Street, 50 .00 feet wide, to the Easterly prolongation of the South line of Lot A, said Tract No. 2038 ; thence West along said Easterly pro- longation, the said South line of Lot A and the South line of Parcel No. 5 and Parcel No. 6, both said Tract No. 2038, following their various courses , to the East line of said ' Tippecanoe Avenue; thence South along the East line of said Tippecanoe Avenue , following its various courses, to the Easterly prolongation of the South line of Lot 12 , Block 72, said Rancho San Bernardino; thence West along said 53 REDEVELOPMENT AGENCY OF THE UTY OF SAN BERNARD7NO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN Southeast Industrial Park Project Area Continued Easterly prolongation and West along the South line of said Lot 12, Block 72 , and the South line of Lot 11, Block 72, said Rancho San Bernardino, to the POINT OF BEGINNING. 54 REDEVLEOPMENT AGENCY OF THE DM OF SAN BERNARDINO MERGED,AMENDED;.AND RES7f/ATEID(REDEVELOPMENT PLAN The legal description of the boundaries of the Tri-City Project Area is as follows: SUBAREA I That portion of Block 51 of the Rancho San Bernardino as per plat thereof recorded in Book 7 of Maps. Page 2, records of the County Recorder, San Bernardino County, State of California, more particularly described as follows: Beginning at an angle point in the Present Corporate City Limit Line of the City of San Bernardino, said point being the inter- section of the centerline of Sixth Street and the centerline of Elmwood Road; thence Northerly along the Present Corporate City Limit Line to the centerline of Ninth Street; thence West along the centerline of Ninth Street to the East line of lot 9 of said Block 51 ; thence North along said East line a distaInce of 1655 feet, more or less, to the Southeast corner of Parcel Map No. 3236, as per plat thereof recorded in Book 30 of Parcel Maps, page 39, records of said County; thence Southwesterly along the Southerly line of said Parcel Map to the Southeast corner of Parcel Map 4147, as per plat thereof recorded in Book 42 of Parcel Maps, page 97, records of said County; thence Southwesterly along the Southerly line of said Parcel Map and its Southwesterly prolongation to the East line of the West 470.25 feet of lot 8 of said Block 51; thence South along said East line to the centerline of Ninth Street; thence West along the centerline of Ninth Street a distance of 20 feet, more or less, to an angle point of the Present Corporate City Limits Line; thence South along said City Limits Line to its intersec- tion with a line parallel with and 894.36 feet North of and measured at right angles to the South lines of lots 3 through 6 of said Block 51; thence East along said parallel line to its intersection with the West line of that certain unnamed access road conveyed to the County of San Bernardino by Grant of Easement recorded June 16, 1965, in Book 6412, page 627, Official Records of said County; thence South along said West line and its Southerly prolongation to the centerline of Sixth Street; thence East along said Centerline to the Point of Beginning. es �J REDEVELOPMENT AGEIWC'W OF THE CIITW OF SAN BERNARDINO (MERGED,AMENDED,AND(RESTATED REDEVELOPMENT PLAN Tri-City Project Area Continued SUBAREA II That portion of Block 72 of the Rancho San Bernardino as per plat thereof recorded in Book 7 of Maps, page 2, records of the County Recorder, San Bernardino County, State of California, more particula:ly described as follows: Beginning at the intersection of the North line of the Interstate 10 Freeway and the centerline of Waterman Avenue; thence North along said centerline a distance of 1800 feet, more or less, to an angle point of the Present Corporate City Limits Line; thence Easterly and Northeasterly along said City Limits Line to its intersection with the East line of Lot 10 of said Block 72; thence South along said East line to the centerline of Gould Street; thence East along the centerline of Gould Street to -its intersection with the centerline of Tippecanoe Avenue; thence South along the centerline of Tippeccanoe Avenue to its intersection with the Easterly prolongation of the North line of Tract No. 2743 as per plat thereof recorded in Book 38 of Maps, page 47, records of said County thence West along said pro- longation and North line to the Northwest corner thereof; thence South along the West line of said Tract No. 2743 and its Southerly prolongation to the North line of said Interstate 10 Freeway; thence West along said North line to the Point of Beginning. 56 REDEVELOPMENT AGENCY OF THE Cf Y OF SAN BERNARDINO MERGED,AMENDED, AND RESTATED REDEVELOPMENT PLAN The legal description of the boundaries of the South Valle Project Area is as follows: Those portions of Lot 1 , Block 54; Lot 4, Block 65; Lots 7 and 8, Block 72; and Lots 7 , 8, 9 and 10, Block 75, all of the Rancho San Bernardino as per plat thereof recorded in Book 7 of Maps, Page 2, Records of the County Recorder of San Bernardino County, State of California, and those portions of all those various subdivisions lying within said Rancho Blocks and together. with those portions of the adjoining streets, described as follows: Beginning at the intersection of the centerline of Waterman Avenue and the south line prolongation of Caroline Street (60 feet wide) ; thence south along said centerline of Waterman Avenue to its intersection with the westerly prolon- gation of the south line of Lot 8, Tract No. 6549, as per plat thereof recorded in Book 87 of Maps, Pages 6 and 7, Records of said County, said south line of Lot 8 being also the northwesterly line of Gage Canal as shown per Record of Survey in Book 16, pages 50 through 56 inclusive; thence northeasterly along said northwesterly line of Gage Canal following all Its various courses and distances to the southerly line of San Timoteo Creek, (San Bernardino County Flood Control District Channel) per County Surveyors Map No. 2125 and per document in Book 5520, Page 327, Official Records of said County; thence westerly along said southerly line of San Timoteo Creek to the south line of Redlands Boulevard (82.50 feet wide) ; thence north to the intersection of the north line of said Redlands Boulevard and said southerly line of San Timoteo Creek; thence continuing westerly along said southerly line of San Timoteo Creek to the southerly line of Interstate Highway Route 10 per State Right- Of-Way Hap No. 984092; thence westerly along said southerly line of Interstate Highway Route 10, and its prolongations, following all its various courses and distances to the centerline of Hunts Lane (88 feet wide) as shown on said State Right-Of-Way Map No. 984092, and an State Right-Of-Way Maps' No. 's 910511 through 910513 inclusive; thence south along said centerline of Hunts Lane to the northerly line prolongation of the Southern Pacific Railroad said Iine being also the south line of Parcel ?, of Parcel Hap No, 2803 recorded in Book 34 of Parcel Maps, Pages 83 and 84, Records of said Countv: • 57 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN South Valle Project Area Continued thence easterly along said south line of Parcel 7, to the' southeast corner of said Parcel 7; thence north along the east line of said Parcel 7 to the northeast corner of said Parcel 7; thence east along the south lines of Parcels 3 and 6 of said Parcel Hap 2803, and the south line of said Caroline Street and Its prolongation to the Point of Beginning. t 58 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED,AMENDED,AND RESTATED REDEVELOPMENT PLAN EXHIBIT C- PROJECT LIST The following list of proposed projects and programs may be undertaken by the Agency along key corridors and at prime opportunity sites within Merged Area A. These projects and programs are not listed in order of priority and may change from time to time. PUBLIC FACILITIES AND INFRASTRUCTURE IMPROVEMENTS These projects and programs involve the replacement and upgrading of public facilities and infrastructure to support existing uses and new development and include: • Circulation upgrades and street improvements • Street beautification, landscaping, medians, and banners • Bridge construction, reconstruction, and repair • Parks and recreation/community centers • Public safety improvements Infrastructure assessments/plans • Utility improvements (e.g., sewer main replacement/relocation, high groundwater table/liquefaction mitigation) • Flood control projects • Bikeways and trails • Sound walls • Railroad track removal • Easements ENVIRONMENTAL CONSERVATION These projects and programs involve increasing the long-term viability, relevance, and cost- effectiveness of existing and future buildings in Merged Area A. Redevelopment activities include: • Solar and geothermal building retrofits • Research and development • Studies and plans ENVIRONMENTAL REMEDIATION AND BROWNFIELDS REVITALIZATION These projects and programs seek to mitigate environmental threats to public health and safety, and transform contaminated, underutilized properties, otherwise known as "brownfields," into productive assets of the community. Redevelopment activities include: • Community outreach • Grant funding • sbX Bus Rapid Transit Project • Environmental remediation REDEVELOPMENT AGENCY OF TIHE CITY OF SAN BERNARDINO MERGED,AMENDED,AND IRES7A'TEID REDEVELOPMENT PLAN ^1 LAND USE PLANNING TO GUIDE REDEVELOPMENT These projects and programs involve updates to land use goals, plans, and policies needed to effectively implement the Agency's redevelopment activities. Examples include, but are not limited to: • General Plan and zoning updates • Preparation of a Downtown Core Specific Plan or Overlay • Specific plans PUBLIC TRANSIT These projects and programs seek to increase public transit systems through Merged Area A and include: • sbX line right-of-way improvements • sbX stops • Bus and rail transit stations • Transit-oriented development projects INFILL DEVELOPMENT PROJECTS AND AFFORDABLE HOUSING These projects and programs involve site clearance, land assembly, and development of infill projects, including affordable housing. Redevelopment activities include • Studies and plans • Property acquisition • Site preparation (including on and off-site public facility and infrastructure improvements) • Developer assistance • Housing, commercial, and industrial rehabilitation and development • Affordable housing programs ECONOMIC DEVELOPMENT ACTIVITIES These projects and programs seek to complement the Agency's goals for urban revitalization by supporting economic development activities to expand and attract businesses to Merged Area A, and provide small business assistance and development. Redevelopment activities include: • Facade improvement programs • Business expansion and attraction programs • Enterprise Zone administration • Small Business Administration 7(E) Loan Program �1 1 �7 60 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO MERGED, AMENDED, AND RESTATED REDEVELOPMENT PLAN EXHIBIT D- MAP OF REMAINING BLIGHT BLIGHTED,NOT BLIGHTED,AND NECESSARY&ESSENTIAL FOR REDEVELOPMENT EXHIBITD SAN BERNARDINO MERGED AREA A Central CNy North G�«.,..,� f '`Trl-C r t .�. Central CNy East .TI NY t Legend Blighted Parcels — aw glIlleg Parcels necessary&essential for effedrve redevelopment FMeadonbrook/Centritl Chy 'oectlsmravamlea eeMefed — c!' «rcceseerymnesaerlw for �� w... . ! ncf cmmee.M UOreetl „ e �- . e .I ! Central City North Central Cy South : Central City East t ! Q Meadowbrook/Central City t =Central City South w 9 ! ggIIIIIIII Southeast Industrial C=Tri City South Valle Southwiduatrlal» a � South Valle w. ! it mwayors.a,rgs„an CUwn.m`.alrore.,wassrau s.,.y as n.rroa o a, w CIA as oa V Report to the Mayor RSA ' and Common Council SAN BERNARDINO MERGED AREA A MERGER & AMENDMENTS October 4, 2010 ROSENOW SPEVACEK GROUP INC. This page intentionally left blank SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council TABLE OF CONTENTS Introduction ............................................................................................................................................1 Overview..........................................................................................................................................................1 Amendment to Increase the Tax Increment&Bonded Debt Limitation......................................................1 Amendment to Add Public Improvement Projects to Merged Plan.............................................................2 Amendment to Extend the Effectiveness and Term to Receive Tax Increment by 10 Years........................2 ProjectArea Merger.....................................................................................................................................3 Report to the Legislative Body Contents.........................................................................................................4 Merger and Amendment Process....................................................................................................................6 Background......................................................................................................................................................6 AboutThe City..............................................................................................................................................6 AboutThe Agency........................................................................................................................................8 MergedArea A.............................................................................................................................................8 City and Agency Financial Capacity........................................................................................................... IS SECTION A: DESCRIPTION OF REMAINING BLIGHT..................................................................................12 Overview....................................................................................................................................................... 12 MergedArea A Demographics...................................................................................................................... 12 Population, Households, and Household Median Income........................................................................ 12 Poverty levels and Unemployment Rates................................................................................................. 13 or Education.................................................................................................................................................. 14 Definitionof Blight........................................................................................................................................ is Urbanization.................................................................................................................................................. 16 PhysicalBlight and Economic Blight.............................................................................................................21 Blight Study Approach and Methodology..................................................................................................... 22 Other Physical and Economic Research....................................................................................................23 Merged Area A Physical and Economic Blight Conditions............................................................................ 23 PhysicalBlight in Merged Area A..............................................................................................................28 EconomicBlight in Merged Area A............................................................................................................88 Summary of Merged Area A Blighting Conditions.................................................................................. 116 Conclusion...........................................................................................................................................117 SECTION B: PROJECTS AND PROGRAMS TO ELIMINATE BLIGHT.............................................................120 Downtown Core Vision/Action Plan........................................................................................................... 121 Projectsand Programs................................................................................................................................ 122 Public Facilities and Infrastructure Improvements................................................................................. 121 Environmental Conservation................................................................................................................... 122 Environmental Remediation and Brownfields Revitalization.................................................................. 123 Land Use Planning to Guide Redevelopment.......................................................................................... 113 PublicTransit........................................................................................................................................... 123 ORSG SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council _. Infill Development Projects and Affordable Housing.............................................................................. 113 V Economic Development Activities........................................................................................................... 123 Necessity of Merger and Amendments...................................................................................................... 123 Continuing Economic and Real Estate Challenges.................................................................................. 114 Downtown Core Vision/Action Plan........................................................................................................ 124 FiscalStability.......................................................................................................................................... 125 SECTION C: PRELIMINARY ASSESSMENT OF THE PROPOSED METHOD OF FINANCING...........................126 Proposed Method of Continuing to Finance Redevelopment.................................................................126 PropertyTax Increment.............................................................................................................................. 126 BondedDebt............................................................................................................................................... 127 Lease or Sale of Agency-Owned Property................................................................................................... 127 Participationin Development..................................................................................................................... 127 Financial Assistance from the City, County,State,and/or Federal Government...................................... 127 OtherAvailable Sources.............................................................................................................................. 128 Mergerand Amendments....................................................................................................................128 Current Merged Area A Time and Financial Limits..................................................................................... 128 Tax Increment Revenue Projections........................................................................................................... 129 MergedArea A Merger............................................................................................................................... 131 Proposed Cumulative Tax Increment Limit................................................................................................. 133 Proposed Cumulative Bonded Indebtedness Limit..................................................................................... 134 Ten Year Extensions for Central City North and Meadowbrook/Central City Project Areas....................135 Reasonsfor the Provision of Tax Increment..........................................................................................137 SECTION D: AMENDMENT TO THE AGENCY'S IMPLEMENTATION PLAN.................................................138 SECTION E: NEIGHBORHOOD IMPACT..................................................................................................139 Overview.............................................................................................................................................139 Impact on Residents in Merged Area A and Surrounding Area...............................................................139 Relocation................................................................................................................................................... 139 EnvironmentalQuality................................................................................................................................ 140 TrafficCirculation........................................................................................................................................ 140 Community Facilities and Services.............................................................................................................. 141 1. Police Services..................................................................................................................................... 142 2. Fire Protect ion..................................................................................................................................... 142 3.Libraries............................................................................................................................................... 142 4. Parks and Recreation.......................................................................................................................... 143 5. Gas, Electricity, and Telecommunications........................................................................................... 143 6.Storm Drainage................................................................................................................................... 144 7.Solid Waste Disposal........................................................................................................................... 144 S. Water........................................................................................:............................I............................ 144 O RSG 0 iii SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 9. Wastewater......................................................................................................................................... 145 School Population and Quality of Education.............................................................................................. 145 Property Assessments and Taxes................................................................................................................ 146 Relocation and Low-and Moderate-Income Housing................................................................................ 146 Affordable Housing Units to be Destroyed or Removed......................................................................... 146 Projected Displacement of Low-and Moderate-Income Persons and Families...................................... 147 Number and Location of Replacement Housing..................................................................................... 147 Number and Location of Low-and Moderate-Income Housing Planned Other than Replacement Housing ................................................................................................................................................................ 147 Financing Method for Proposed Low-and Moderate-Income Dwelling Units Planned for Construction or Rehabilitation.......................................................................................................................................... 147 Timetable for Provision of Relocation, Rehabilitation, Replacement and Incluslonary,Housing............ 148 Other Matters Affecting the Physical and Social Quality of the Environment........................................ 148 SECTION F: DESCRIPTION OF MERGED AREA A BONDS.........................................................................149 1998 Series A Refunding Bonds............................................................................................................149 1998 Series B Subordinate Refunding Bonds.........................................................................................150 2005 Series A Refunding Bonds............................................................................................................152 2005 Series B Refunding Bonds.............................................................................................................153 O 2006 Housing Set Aside Tax Allocation Bonds.......................................................................................154 SECTION G: METHOD OF RELOCATION.................................................................................................155 i SECTION H: ANALYSIS OF PRELIMINARY PLAN......................................................................................156 SECTION I: REPORT&RECOMMENDATION OF THE PLANNING COMMISSION........................................157 SECTION l: STATEMENT OF CONFORMANCE WITH GENERAL PLAN .......................................................158 jSECTION K: ENVIRONMENTAL IMPACT REPORT....................................................................................159 SECTION L: REPORT OF THE COUNTY FISCAL OFFICER...........................................................................160 SECTION M: TAXING AGENCY,PROJECT AREA COMMITTEE,RESIDENTS AND COMMUNITY ORGANIZATION CONSULTATIONS..................................................................................................................................161 { { i i i i { { C ®RSG iv i BIntroduction INTRODUCTION OVERVIEW In accordance with the California Community Redevelopment Law("CRL") (Health and Safety Code Section 33000 at sec.), the Redevelopment Agency of the City of San Bernardino (Agency") is proposing various redevelopment plan amendments and the merger of seven of the Agency's redevelopment project areas ("Project Areas").' The seven Project Areas under consideration include Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City East, and Central City South, collectively referred to as "Merged Area A" and individually referred to as "Project Area." Table i-1 summarizes the proposed merger and redevelopment plan amendments ("Merger and Amendments ) under consideration by the Agency and the Common Council of the City of San Bernardino("Common Council"). As part of the Merger and Amendments, the Community Development Commission of the City of San Bernardino ("CDC") is proposing to adopt a single Merged, Amended, and Restated Redevelopment Plan for Merged Area A("Merged Plan"). Merger and Amendments Table i-1 San Bernardino Merged Area A Tax Increment & Bonded Merge Single- Merged, Indebtedness Capital 10-year Project Amended & PROJECT AREA Cap Projects Extension Areas Restated Plan Central City East Central City North J J J J J Central City South J J J J Meadowbrook/Central City J J J J J South Valle J J J J Southeast Ind. Park J J J J Tri-City J J J J AMENDMENT TO INCREASE THE TAX INCREMENT& BONDED DEBT LIMITATION Section 33354.6(a)of the CRL sets forth that when a redevelopment agency proposes a redevelopment plan amendment to increase the limitation on the number of dollars to be allocated to the project area, or the amount of bonded debt that can be outstanding at any one time, the agency shall follow the same procedure, and the legislative body is subject to the same restrictions, as when adopting a new redevelopment plan. Furthermore, CRL Section 33354.6(b) specifies that when an agency proposes such amendments, it shall describe and identify the following in the amendment documents: the remaining blight within the project area; the portions, if any, that are no longer blighted; the projects that are required to be completed to eradicate the remaining blight; and the relationship between the costs of those projects and the amount of increase in the limitation on the number of dollars to be allocated to the agency. "The ordinance adopting such an 'In total, the Agency manages the following 14 Project Areas: Meadowbrook/Central City(2), Central City East, Central City South, Central City North,Central City West,State College,Southeast Industrial Park,Northwest,Tri-City,South Valle,Uptown,Mt.Vernon,and 40th Street. '^1 O RSG 1 I ^ SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS _. Report to the Mayor and Common Council amendment must contain findings that both (1) significant blight remains within the project area and (2) the blight cannot be eliminated without the establishment of additional debt and the increase in the limitation on the number of dollars to be allocated to the redevelopment agency." The Agency is proposing single cumulative limits for both the tax increment limitation and the bonded indebtedness limitation for Merged Area A. Table i-2 illustrates the current tax increment and bonded indebtedness limitations and the proposed limitations that will be included in the Merged Plan if adopted by the Common Council at the public hearing. Current and Proposed Tax Imrement Cap and Bonded Debt Urnil Table F2 6sn B rroralno Merpaa Aro•A Comet Limlb for Indlvlduel ProJed Anu PnlectAro• Bendel Deet Llmlten lit lvinti Tex lncromsM Until Centel City NOM 140.000.000 175x AnnW Mmlmum Debt SeMCe SoutMset musMel Pent 360000.000 175.N W Mmlmum DeM S". Proposed Cumulative limits rh City Prl.dAm Banded Dobt Unilt Limk on bnlNna Tx E MmmeM Sw10 Vole $14.010.14() 175x AmW Maximum Dad SeMCe ¢ Moped Arse {3]7000000 61.500000.000 a MeedwMppk7CeniN Cdy {50.000,000 tiSx AMW Mmlmum Debt 6eMw F Cnlnl City South 130.000.000 115•Amul Minimum DeM 6eMCe Centel City Es c1 325.000.000 175.MnW Mmlmum DeM Senlce s CMIe l AMENDMENT TO ADD PUBLIC IMPROVEMENT PROJECTS TO MERGED PLAN Under Section 33354.6 of the CRL, the legislative body may amend a redevelopment plan to add significant capital improvement projects as determined by the redevelopment agency. To add such capital improvement projects, an agency must follow the same procedures as adopting a new redevelopment plan. The Agency is both amending the capital project lists for the individual Project Areas into one merged list, as well as adding new capital projects for Merged Area A. AMENDMENT TO EXTEND THE EFFECTIVENESS AND TERM TO RECEIVE TAX INCREMENT BY 10 YEARS The Agency wishes to pursue the extension of the effectiveness of the Central City North and Meadowbrook/Central City Project Areas. These Project Areas will reach their effectiveness time limit in the near future. Once the effectiveness limit is reached, implementation activities (except for inclusionary housing) within the Project Areas must cease and funds can only be spent on administering debt associated with the Project Areas. Therefore, the Agency wishes to pursue an amendment to extend for 10 years the effectiveness and time period to receive tax increment for these two Project Areas. This amendment will further the Agency's ability to financially support needed redevelopment projects and programs in Merged Area A. Table i-3 depicts the current and proposed effectiveness and tax increment time limitations in the Central City North and Meadowbrook/Central City Project Areas. Q RSG z SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Plan Effectiveness and Tax Increment Time Limits Table i-3 San Bernardino Merged Area A Effectiveness of Plan Last Date to Receive Tax Increment Project Area Current - Proposed Current Proposed Central City North August 6, 2016 August 6, 2026 August 6, 2026 1 August 6,2036 Meadowbrook/Central City May 3,2019 May 3,2029 May 3, 2029 May 3,2039 Source:Project Summary Charts-San Bernardino EDA Pursuant to CRL Section 33333.10, the Common Council must make findings that significant blight remains in the two Project Areas that cannot be eliminated without extending the effectiveness of the redevelopment plan and the time limit to receive tax increment. The 10-year amendment would require the Agency to follow the same procedure required to adopt a new redevelopment project, and adhere to the additional requirements prescribed by the CRL to complete this particular type of amendment. Significant blight does not have to be prevalent throughout, though tax increment may only be spent in areas where blighting conditions are identified or where non-blighted parcels are deemed necessary and essential. This requirement for spending tax increment generated in the Project Areas in this restricted manner commences only after the original effectiveness limit has expired. An important outcome of the 10-year amendment is the requirement that, commencing the first fiscal year after the amendment is adopted, the Project Areas must deposit a total of 30% (a 10% increase) of the tax increment revenue received (from the Project Areas) into the Agency's Low and Moderate Income Housing Fund ("Housing Fund"). The requirement limiting where funds may be spent after the 10-year amendment does not include expenditures from the Housing Fund. Additionally, the CRL contains a list of other requirements that must be met for the Agency to extend the effectiveness and tax increment time limitations for the Central City North and Meadowbrook/Central City Project Areas. The Common Council must not only make the required findings of blight noted above, but prior to the Common Council's consideration of the amendment ordinance, the CDC must adopt a resolution that makes the following findings: • The community has an adopted housing element certified by the Department of Housing and Community Development; • The Agency has not been in major violation of the State Controller's annual reporting for the past three fiscal years; and • The Agency has written a request to and received a response from the State Department of Housing and Community Development stating that the Agency does not have an excess surplus in its Housing Fund. PROJECT AREA MERGER Section 33485 of the CRL states that "Mergers of project areas are desirable as a matter of public policy if they result in substantial benefit to the public and if they contribute to the revitalization of blighted areas through the increased economic vitality of those areas and through increased and improved housing opportunities in or near such areas." Furthermore, Section 33486 of the CRL states that project areas may be merged, without regard to contiguity of the areas, by the amendment of each affected redevelopment plan as provided in Section 33450 of the CRL. Before adopting the ordinance amending each affected redevelopment plan, the Common Council must find, based on substantial evidence, that both of the following conditions exist: Q RSG 3 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS �- Report to the Mayor and Common Council 1. Significant blight remains within one of the Project Areas being merged. 2. This blight cannot be eliminated without merging the Project Areas and the receipt of property taxes. REPORT TO THE LEGISLATIVE BODY CONTENTS Sections 33333.11 and 33352 of the CRL require the Agency to prepare and the CDC to adopt a report to the legislative body ("Report") containing specified information at lest 45 days prior to the public hearing on the Merger and Amendments. This Report satisfies those statutory requirements. A 'Preliminary Report" was previously prepared and transmitted in May 2010 to other taxing agencies in the Project Areas that may be potentially affected by the Merger and Amendments. In accordance with CRL Section 33333.11(h), this Report contains all of the information contained in the Preliminary Report and includes the additional information required by Sections 33333.11(h)(2){5) and 33352. Consistent with CRL Sections 33333.11(h) and 33352 this Report contains the following information: Report Sections CRL Section Required Contents Reference A Description of 33333.11(h)(1) A description of the remaining blight in Merged Area A. Remaining Blight 33333.11(e)(1-2) A map of Merged Area A that identifies the portion, if 33352(b) any, that is no longer blighted, the portion that is blighted, and the portion that contains necessary and essential parcels for the elimination of the remaining blight. A determination whether Merged Area A is predominantly urbanized. © B Projects and Programs 33333.11(h)(1) A description of the projects or programs proposed to to Eliminate Blight 33333.11(ex3-5) eliminate the remaining blight and how they will 33352(a) improve the conditions of blight. The reasons why the projects or programs cannot be completed without the Merger and Amendments. C Method of Financing 33333.11(h)(1) Ficted posed method of financing these programs or 33333.11(e)(6) . This description shall include the amount of 33352(d)&(e) ment revenue that is projected to be d during the period of the extension, including projected to be deposited into the Low and te Income Housing Fund and amounts to be ffected taxing entities. This description shall lude sources and amounts of moneys other than tax increm ent revenues that are available to finance these projects or programs. This description shall also include the reasons that the remaining blight cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both,without the use of the tax increment revenues available to the Agency because of the Merger and Amendments. D Amended 33333.11(h)(1) An amendment to the Agencys implementation plan Implementation Plan 33333.11(e)(7) that includes, but is not limited to,the agency's housing 33352(c) responsibilities pursuant to Section 33490. The amended implementation plan shall describe specific goals and objectives of the Agency, proposed project (PRSG 4 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council and programs, and expenditures over the next five years. However, the Agency shall not be required to hold a separate public hearing on the implementation plan pursuant to subdivision (d)of CRL Section 33490 in addition to the public hearing on the Merger and Amendments. E Neighborhood Impact 33333.11(h)(1) If the project area contains low-or moderate-income Report 33333.11(e)(8) housing,a neighborhood impact report which 33352(m) describes in detail the impact of the project upon the residents of the project area and the surrounding areas, in terms of relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education,property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. The neighborhood impact report shall also include the requirements of paragraphs(1)through(6)of subdivision (m)in Section 33352. F Description of Merged 33333.11(h)(1) A description of each bond sold by the Agency to Area A Bonds 33333.11(e)(9) finance or refinance Agency activities in any of the Project Areas six months before the date of adoption of the proposed Merger and Amendments, and listing for each bond the amount of remaining principal, the annual payments,and the date that the bond will be paid in full. G Method of Relocation 33333.11(h)(1) A method or plan for the relocation of families and 33333.11(ex8) persons to be temporarily or permanently displaced 33352(m) from housing facilities in the project area,which method or plan shall include the provision required by Section 33411.1 that no persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacement. H Analysis of Preliminary 33352(8) An analysis of the preliminary plan. Plan I Report and 33333.11(h)(2) The report and recommendations of the planning Recommendation of the 33352(h) commission. Planning Commission J Statement of 333520) The report required by Section 65402 of the Conformance with Govemment Code. General Plan K Environmental 33333.11(h)(3) The report required by Section 21151 of the Public Documentation 33352(k) Resources Code. O RSG s SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS © Report to the Mayor and Common Council L Report of the County 33352(1) The report of the county fiscal officer as required by Fiscal Officer Section 33328. The Merger and Amendments do not alter boundaries of the Project Areas and therefore do not warrant the report of the county fiscal officer. M Taxing Agency, PAC, 33333.11(hx4)&(5) A summary of consultations with affected taxing Residents and 33352(n)&(i) agencies, residents, or community organizations. Community Response to written objections or concerns from Organizations residents or community organizations as result of the Consultations consultations. MERGER AND AMENDMENT PROCESS CRL Sections 33450 through 33458 authorize the Agency to recommend amendments to existing redevelopment plans, if: 1. Documentation prepared by the Agency substantiates the need for the amendment(s); 2. The convening of a joint public hearing of the Common Council and the CDC on the proposed amendment(s)is held;and 3. Consideration and adoption of an ordinance by the Common Council approving such amendment(s) is completed. The Report to Council required by CRL Sections 33333.11(h) and 33352 is one of several documents the Agency must prepare during the amendment process. The Report's primary purpose is to provide decision makers with comprehensive information concerning the proposed Merger and Amendments. The Report and the final text of the Merged Plan will be considered by the CDC and the Common Council at a joint public hearing tentatively scheduled in October 2010. All Merged Area A property owners, residents, business owners, and affected taxing entities will receive notice of this public hearing by mail and through the publication of public notices in a local newspaper. The Agency has also prepared other key documents in connection with preparation of the Merger and Amendments. On May 5, 2010, a Preliminary Report was prepared and transmitted to the State Department of Finance, Department of Housing and Community Development, local officials, and affected taxing agencies providing them an opportunity to study and comment on the proposed Merger and Amendments. Additionally, the Agency held a community meeting on April 26, 2010 to provide an opportunity for residents and community organizations to comment on the Preliminary Report and other Merger and Amendments activities. It should be noted that the Planning Commission recommended approval of the Merger and Amendments on June 23,2010. BACKGROUND ABOUT THE CITY The City of San Bernardino ("City") was incorporated as a Charter City in 1854 and is home to over 208,000 residents. The City is located in the Inland Empire (Riverside and San Bernardino Counties), approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The City encompasses approximately 37,120 acres and is the County Seat of San Bernardino County ("County"). Exhibit i-1 identifies the location of the City. The City provides a full range of services including police and fire service; construction and maintenance of streets and other public infrastructure; community development; recreational activities; and other community service activities. O RSG _ s Z 0 _ ( ( \ - � 0 . # 2 § \ � � ^ \ » � ■ � 22 � � ■ � � ^ ■ . ` . . � § � 7 � IF k § LU . � - 2 § , ! Wiz ) . ; - « , w ) \ co b � & \ < ( ^ ` � / zl � SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council ABOUT THE AGENCY The Common Council created the Agency in 1958 with the responsibility of initiating and managing redevelopment projects and activities within the Project Areas in the City. The Common Council also established a Community Development Commission ("CDC"), composed of the Common Council Members, to act as the Board of Directors of the Agency. The City Economic Development Agency ("EDA") oversees redevelopment activities in the Agency's Project Areas. The EDA is a "classified organization whose mission is to enhance the quality of life for the citizens of San Bernardino by creating jobs, eliminating physical and social blight, supporting culture and the arts, and developing a balanced mix of quality housing, along with attracting and assisting businesses both independent and through public-private partnerships."2 MERGED AREA A Merged Area A is comprised of the following seven Project Areas: Central City North, Southeast Industrial Park, Tri-City, South Valle, Meadowbrook/Central City, Central City East, and Central City South. Merged Area A is generally located east of 1-215 Freeway including downtown San Bernardino. Merged Area A encompasses approximately 2,390 acres and is depicted in Exhibit i-2.3 The following narrative provides a detailed description of the Project Areas that comprise Merged Area A. Merged Central City Projects Central City Projects is the combination of three Project Areas encompassing 703 acres, which were merged in 1983. The three Project Areas are the Meadowbrook/Central City("M/CC"), Central City East("CCE"), and Central City South ("CCS") Project Areas. Consolidation occurred to allow for more efficient management of Agency resources. Developments in the merged Central City Projects include various administrative offices for federal, state, county, and city departments. The 55-acre Seccombe Lake Urban Park and the 136-acre National Orange Show Fairgrounds are both located in the Project Area Central City North The Central City North Project Area ("CCN")was adopted on August 6, 1973 and spans 278 acres. Located east of the 1-215 Freeway near the City's Civic Center, CCN is a mixture of retail, commercial, restaurant, professional service, and single family residential uses. Since Adoption, senior housing facilities, the City's main library,a 20-screen multi-plex theater, and the Stater Bros Central City Plaza have been developed. The California Theater, a qualified national historic building which is home to the Civic Light Opera and the Inland Empire Symphony, has been renovated through the Agency as well. Alongside the development of the commercial, arts, and residential uses in CCN,the Project Area now includes the administrative offices for the City Unified School District, the County Superintendent of Schools, and the Community College District. The Project Area is also home to the Central Police Facility, which joins police staff, communications, and jail facilities all under one roof. The Project Area's Superblock also holds an eleven story consolidated office tower and parking garage for the State Department of Transportation, CalTrans. Southeast Industrial Park The Southeast Industrial Park ("SEIP")was adopted on June 21, 1976 with a total acreage of 834 acres. The Project Area is located in the southeast quadrant of the City and is divided into a western section and an eastern section. The western end is devoted primarily to commercial complexes and professional offices, while the eastern area is zoned for light industrial. 'San Bernardino Economic Development Agency,"Economic Development Agency",http://w .sbrda.org/ 'Acreage does not include public right-of-vvay and may vary from acreage(inclusive of public right­of-my)reported in the Agency's Five Year Implementation Plan. O RSG 8 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council The western section is adjacent to the 1-10 and 1-215 Freeways interchange and offers a restaurant row,a mix of professional office complexes, a hotel with convention facilities and various motels, retail, commercial, and light industrial groups. West of the 1-215 Freeway is the San Bernardino Auto Plaza. The eastern section has both 1-10 Freeway and rail access and is in close proximity to the San Bernardino International Airport, making it ideal for distribution and manufacturing facilities. Vacant land is available for development. Tri-City The Tri-City Project Area was adopted June 20, 1983 and contains 421 acres. Located in the southeast section of San Bernardino, the Tri-City Project Area is divided into two areas: Sub-area 1 and Sub-area 2. Sub-area 1 is located west of Del Rosa Avenue and north of Sixth Street to Baseline. This sub-area is zoned for residential and is occupied by apartment units on a 12-acre site. The remainder of the land is owned and marketed by the Agency. Sub-area 2 is located east of Waterman Avenue,west of Tippecanoe Avenue, and north of the 1-10 Freeway. This sub-area is highlighted by the Tri-City Corporate Center which is a mix of office, light industrial, retail, and commercial uses, including a variety of restaurants. South Valle The South Valle Project Area was adopted on July 9, 1984 and spans 292 acres. The Project Area is located south of the 1-10 Freeway within the southern portion of the city limits. South Valle is adjacent to the commerce center of the Southeast Industrial Park and Sub-area 2 of the Tri-City Project Area. South Valle is ideal for commercial and light industrial and is within the sphere of two commercial and industrial centers. The Project Area has rail service through the center with a transcontinental truck terminal located adjacent to the project at the southwest corner of Hunts Lane and Redlands Boulevard. O RSG _ 9 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council PROJECT AREAS EXHIBIT 1.2 SAN BERNARDINO MERGED AREAA r Central Cdy North Tri-C.. v, Central City East x � � - i a e t•. n„ s �. I fir.. tS f7 T 9 f Legend MeadowbrooWCentral City Central City North Central City East I a ;���� w. I —}� 4,. MeadowbrooWCentral City 1 i 1 I al n I t l I S � y 0 �-1 a ,• ,; r� i� ��J Central City South y Central Cit y South il _xi O Southeast Industrial f, ..:. r-. ,K... 6 g .e... Sri-City South Valle 3., w� Southeast Industrial _ r � v �jpv _.TrI cit H .r iYI. \ ra {{ i6 vil 5 Y � �V 3cvm=tivd5an 2amartY.°GIS RVrImeT.lki•N'[n. 0 010! 00 06 08 ®YFs ORSG To— SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council CITY AND AGENCY FINANCIAL CAPACITY The City has not been immune to the economic and real estate woes of the region and is currently experiencing economic hardship that requires borrowing from the Agency to cover expenses that cannot be paid from the City's General Fund. The EDA oversees the use of tax increment revenue generated from the Agency's Project Areas. The Common Council elected to borrow $1.3 million from the Agency to offset the $2.7 million General Fund deficit at the August 17, 2009 meeting. As of December 8, 2009, the City is predicting a General Fund Budget shortfall to be greater than prior estimate of$2.7 million and anticipates a shortfall of$4.9 million.4 The Director of the EDA, Emil Marzullo believes that"We have a systematic problem in the city that has been going on for more than a decade. We have to have a way for the city to pay its own cost without borrowing from the agency."s The Agency typically covers more than $5.0 million annually in General Fund costs. The General Fund shortfall is due to many factors including the downtumed economy. The City predicted a 6%decrease in city-wide assessed valuation between FY 2008-09 and 2009-10, that in reality decreased by 17%a This significant drop in assessed valuation has strained the City's capacity to fund projects relying on the General Fund. The City has also experienced increased losses in both sales tax revenue and business registration fees. In addition, the State Department of Finance determined a $1.0 million overpayment to the City in FY 2008-09 that will be adjusted for in FY 2009-10. The City is looking for ways to balance the General Fund without relying on tax increment revenue generated in the Project Areas to support capital improvement projects. Tax increment generated in the Project Areas is also yielding lower amounts than predicted by the Agency due to decreased assessed valuations. Five of the 14 Project Areas in the City are experiencing budget shortfalls and limit the financial capacity of both Agency and City capital projects funded by tax increment revenue. Two of the Project Areas suffering from budget shortfalls include the CCN and Tri-City Project Areas and are part of the area included in Merged Area A. The Central City Projects were established over 30 years ago as part of the City's effort to eliminate blight in the oldest area of the City. The Central City Projects encompass the core of the City's downtown urban area. Declining building quality has exacerbated decay and economic disparity in the area. Properties that were once financially viable have become vacant or have been demolished leaving behind vacant properties. In an effort to mitigate the rapid decline of the area, special legislation codified in Article 14 of the CRL was enacted in the 1970's to provide a mechanism to address the financial constraints to redeveloping the Central City Projects. Although the special legislation helped alleviate some of the financial constraints at the time, blight still persist in the area and additional financial investment to eliminate remaining economic and physical blight in the area is necessary. Due to extraordinarily high land cost, demolition and remediation cost, redevelopment of the Central City Projects has been impaired. As a result, development opportunities have shifted from the downtown area to the SEIP and Tri-City Project Areas, further exacerbating decline in the downtown area. The Merger and Amendments are needed to provide financial stability and to eliminate remaining blight throughout Merged Area A. 'Heather Gray,City of San Bernardino Office of the City Manager,"City of San Bernardino combats higher than expected Budget Shortfall,December 8,2009. 'Chris Richard,"Financial subsidies spell trouble in San Bernardino's government", The Press Enterprise,August 24,2009. Heather Gray,City of San Bernardino Office of the City Manager,"City of San Bernardino Experiences Budget Shortfall,November 18, 2009. Q RSG 11 Description of Remaining Blight SECTION A: DESCRIPTION OF REMAINING BLIGHT OVERVIEW Pursuant to CRL Sections 33354.6, 33333.10, and 33486, findings of significant remaining blight in Merged Area A must be made to complete the Merger and Amendments. This Section of the Report details the remaining blight in Merged Area A, including a map of Merged Area A that identifies the portion, if any, that is no longer blighted, the portion that is blighted, and the portion that contains necessary and essential parcels for the elimination of the remaining blight. This Section of the Report also makes a determination as to whether Merged Area A is predominantly urbanized. MERGED AREA A DEMOGRAPHICS The demographic profile of Merged Area A illustrates the socio-economic conditions that help support the need for the Merger and Amendments to generate additional capital that can be reinvested into the community. As this Section documents, a significantly higher poverty rate, lower household median income, and lower educational attainment in Merged Area A indicate that the financial capacity of residents in the Project Areas is significantly limited, particularly when compared to the entire City and County. Thus, the ability to maintain and invest in property improvement is impacted. In addition to the restricted financial capabilities of residents, demographic data shows that only 14.3%of homes located in Merged Area A are owner occupied, compared to 45% for the City and 55.6% for the County.' Owner occupied units are typically better maintained than rental units. According to the California Building Industry Association, "Homeowners work to maintain the value of their investment,which translates into a greater concern for neighborhoods and surrounding communities. When citizens become homeowners, they become stakeholders as well. By increasing the number of stakeholders, communities not only enjoy increased stability, but also benefit from a new spirit of revitalization."' Furthermore, absentee landlords often evaluate the success of their investment based on annual net operating income which results in less focus on and investment in the long-term maintenance and future livability of their properties. In an area where residents earn significantly less than the rest of the City and where the majority of residents live in renter occupied homes, the cost of maintenance and repairs is difficult to overcome. Limited financial resources and a low percentage of owner occupied units reflect the need for continued financial assistance to successfully redevelop Merged Area A. POPULATION, HOUSEHOLDS, AND HOUSEHOLD MEDIAN INCOME Table A-1 depicts the 2009 population, number of households, and the household median income for Merged Area A, each of the Project Areas, the City, and the County. The median household income in Merged Area A of$19,962 is only 52%of the City's and 37% of the County's median household income. 7 Based on demographic data provided by ESRI Business Analyst,2009 a Alan Nevin,"Homeownership in California;California Building Industry Association,September 9,2008, http://www.cbia.org/go/cbia/publications/. Q RSG 12 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Population and Household Demographics Table A-1 San Bernardino Merged Area A 2009 Total 2009 Total 2009 Median Area Area Acres Population Households Household Income County 12,833,600 2,059,757 613,854 $53,848 City 37,120 208,335 60,536 $38,445 Merged Area A 2,390 7,204 2,459 $19,962 CCE 173 1,594 445 $18,276 M/CC 93 560 292 $9,898 CCN 141 2,025 702 $16,339 CCS 437 248 85 $33,126 SEIP 834 402 105 $46,651 South Valle 292 1,741 650 $24,067 Tri-City 421 634 180 $27,541 Source:ESRI Business Analyst Online and U.S. Census Bureau POVERTY LEVELS AND UNEMPLOYMENT RATES Table A-2 presents the poverty levels and unemployment rates in Merged Area A, the City, and the County. Merged Area A has a poverty rate that is 63% higher than that of the City, and 184%higher than that of the County. Over 38% of the households in Merged Area A live at or below the poverty level, compared to 23.5% in the City and 13.5% in the County. Unemployment rates in Merged Area A are also much higher than in the City or the County; 22.5% of Merged Area A residents are unemployed, compared to 19.4% in the City, and 15.7% in the County. Though data for Merged Area A is not available, 38.3%of City residents receive some form of financial public assistance, including food stamps, CaIWORKS, and MediCal. This assistance is valued at more than$450 million per year. Unemployment and Poverty Rates Table A-2 San Bernardino Merged Area A 2009 Civilian Percent Below Area Unemployed Poverty Level County 15.7% 13.5% City 19.4% 23.5% Merged Area A 22.5% 38.4% CCE 20.9% 48.4% M/CC 34.0% 67.3% CCN 30.1% 31.7% CCS 16.9% 27.4% SEIP 13.2% 19.8% South Valle 14.3% 35.3% Tri-City 27.8% 37.0% Source:ESRI Business Analyst Online ORSG_ 4 O --- 13 SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council EDUCATION Educational attainment is an indicator of potential future household earnings and thus the ability to invest in maintenance and improvement of real estate. Lower educational attainment of residents in Merged Area A may be related to lower household incomes. Without adequate education, skills training, and English literacy, most higher-paying jobs are unattainable. Individuals without at least English literacy and a high school education or proper skills training often have no alternative but to accept lower-paying service work, or remain unemployed. According to a report completed by the Urban Libraries Council, "researchers in the field of economics are beginning to identify child development investments as the most cost effective strategies for long-term economic development.°a By providing children with a strong educational foundation through investment in early childhood development, there is greater long-term return on earning potential. Table A-3 shows the level of educational attainment for persons 25 years of age or over in Merged Area A, the City, and the County. The percent of persons over the age of 25 without a high school diploma is 44.1% in Merged Area A, compared to 35.1% in the City and 25.8% in the County. The percentage of persons over the age of 25 with at least a college degree is also lower in Merged Area A(9.4%)than the City(11.6%) and the County (15.9%). These statistics relate directly to higher unemployment rates and lower household income levels in Merged Area A as previously discussed. These conditions combine to create an environment where investment in building maintenance is difficult to achieve. Educational Attainment (25 years of age and over) Table A-3 San Bernardino Merged Area A No High School Bachelor's Degree Area Degree High School Degree or Higher City 35.1% 53.3% 11.6% County 25.8% 58.3% 15.9% Merged Area A 44.1% 46.5% 9.4% CCE 57.4% 40.9% 1.7% WCC 62.1% 36.7% 1.2% CCN 50.5% 46.0% 3.5% CCS 61.1% 36.2% 2.7% SEIP 46.0% 48.9% 5.1% South Valle 19.2% 51.7% 29.1% Tri-City 57.1% 37.3% 5.6% Source:ESRI Business Analyst Online e-Making Cities Stronger: Public Library Contributions to Local Economic Development,"Urban Libraries Council,9 September 2008,http://.,urbanlibraries.org/files/making_uties_stronger.pdf. O RSG 14 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council- DEFINITION OF BLIGHT 4 CRL Sections 33030 through 33039 describe the conditions that constitute blight in a redevelopment project area. A blighted area is one that necessitates the creation of a redevelopment project area because the combination of conditions in an area constitute a burden on the community, and cannot be alleviated by private enterprise, governmental action, or both, without redevelopment. The purpose of a redevelopment project area is to remedy blighting conditions and the CRL recognizes that less blight will remain in a redevelopment project area as time progresses. The ordinance adopting the Merger and Amendments must contain findings that both (1) significant blight remains within Merged Area A and (2) the blight cannot be eliminated without the adoption of the Merged Plan. For the purpose of this Section, the definition of "significant" is assumed to be "of a noticeably or measurably large amount"1e and/or "important and of a magnitude to warrant Agency assistance."" CRL Section 33030 defines a blighted area as one that contains both of the following: 1. An area that is predominantly urbanized and is an area in which the combination of physical and economic blighting conditions is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical and economic burden on the community that cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both,without redevelopment. 2. An area characterized by one or more physical condition of blight and one or more economic condition of blight as set forth in subdivisions (a) and (b) of CRL Section 33031. A blighted area that meets the conditions above can also be characterized by the existence of inadequate public improvements. CRL Sections 33035 and 33036 contain legislative findings and declarations that explain the effect that blighted areas have on project area inhabitants and property owners. Blighted areas create physical and economic liabilities to the community that require redevelopment in order to protect the health, safety, and general welfare of the public. Blighted areas are a menace to the community and disproportionately impact community resources such as police and fire services. Remedying blighting conditions in a community using redevelopment tools benefits not only a project area but the entire community. i0"SignKcant" Mernam-Weoster's Collegiate Dictionary. 101"ad. 1998. " Definition per CRL Section 33333.10(c)(2) O RSG 15 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS C Report to the Mayor and Common Council URBANIZATION The City was established in 1854 and is one of the oldest communities in the State of California. As of 2006,the City was the 18th largest city in California, and the 101st largest city in the United States.12 The City is largely urbanized and is part of the greater Inland Empire Metropolitan Area. Pursuant to CRL Section 3332O.1(d), the requirement for Merged Area A to be predominantly urbanized applies to redevelopment plans adopted (or amendments adding territory) after January 1, 1984. Out of the seven Project Areas, six were adopted prior to January 1, 1984. The South Valle Project Area was adopted after January 1, 1984 and satisfied urbanization requirements at the time of adoption. The Merger and Amendments do not propose to add new territory so there is no requirement to make additional urbanization findings. To qualify for inclusion in a project area, the area must be "predominantly urbanized" as defined by CRL Section 3332O.1(b). The "predominantly urbanized" requirement is met if no less than 80 percent of the land within the project area: • Has been or is developed for urban uses;or • Is an integral part of one or more areas developed for urban uses, which are surrounded or substantially surrounded by parcels,which have been or are developed for urban uses. While the CRL specifies the percentage of an area that must be urbanized to qualify for redevelopment, it does not define "urbanized." Several California courts 13 have reviewed the concept of urbanization and their opinions are instructive in guiding the determination as to whether an area is predominantly urbanized. First, when analyzing urbanization, it is necessary to look at the factors of the land use and zoning, as well as the characteristics of the surrounding uses. Characteristics to be considered include density, surrounding development, existence of public facilities, parcel size, and availability of public transit, among other things. Second, because land is vacant does not mean it is not urbanized. Likewise, because land has improvements does not mean it is urbanized. Again, it is important to look to the characteristics of the area. Some vacant land is categorized as an integral part of the urban area. In determining whether a vacant property is an integral part of the urban area, vacant properties with at least three sides adjacent to urban development are included. The Report includes a description of Merged Area A sufficient to determine that the area is predominantly urbanized. Although no area is being added by the Merger and Amendments, the following responds to the requirements of CRL Section 33344.5(c)(1)-(6): • Merged Area A includes 2,390 acres. • Merged Area A does not include any acres characterized by the conditions described in paragraph (4) of subdivision (a) of CRL Section 33031 for the purpose of determining urbanization. • Merged Area A does not include any land in agricultural use (as defined by Government Code Section 512O1(b)). • Merged Area A includes 462 acres of vacant land. However, these vacant parcels are spread throughout Merged Area A, are surrounded by parcels developed with urban uses, and are therefore are an integral part of an area developed for urban uses. 12 Table 1:Annual Estimates of the Population for Inwrporated Places Over 100,000,Ranked by July 1,2006 Population:April 1, 2000 to July 1,2006"(CSV).2005 Population Estimates.United States Census Bureau,Population Division.2007-06-28. http://www.census.gov/popest/cifes/tablesSUB-EST2006-Ol.csv. Retrieved 2007-06-28.See also:List of United States cities by population "County of Riverside v.City of Mumieta(Cal.App.4th Dist. 1998);Fdentls of Mammoth v.Town of Mammoth(Cal.App.3rd Dist. 2000);Graber v.City of Upland(Cal.App.4th Dist,2002), Q RSG 16 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council • Approximately 80.6% of the area in Merged Area A is developed with urban uses, and the vacant 4 parcels (comprising 19.4% of the total area of the Merged Area A) are an integral part of an area developed for urban uses. Table A-4 provides a summary, by the seven Project Areas, of the land that is currently developed with urban uses and the vacant land in Merged Area A. It indicates that 1,928 acres, or 80.6%, of the total 2,390 acres that constitute Merged Area A have been or are developed for urban uses; the vacant areas are an integral part of an urbanized area. Merged Area A meets the current "predominantly urbanized" requirement of the CRL. Project Area A Urbanization Analysis Table A-4 City of San Bernardino Redevelopment Agency Developed Project Area Total Acreage Vacant Land Land CCE 173 22 150 M/CC 93 7 86 CCN 141 15 126 CCS 437 120 317 SEIP 834 185 649 South Valle 292 31 261 Tri-City 421 81 340 Merged Area A 2,390 462 1,928 Source:Metroscan Maps of Merged Area A, presented in Exhibits A-1, A-2, and A-3, illustrate the portions of Merged Area A that are developed and the portions that remain vacant. They also illustrate that the vacant parcels are surrounded by urban uses. O PSG 17 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council URBANIZED PARCELS EXHIBITA-1 BAN BERNARDINO MERGED AREAA -1 Central Clty Nort h fLfLfL LL r,� c Tn Gty . i 1 7 i Central City Eest t t r' _ - �''I ' Legend Vacant Parcels MeadowDrooklCenhal City Central City North Central City East c Meadowbrook/Central City Central City South Central Clty y ©Southeast Industrial ___�- 1• ' �, ___ r".. Tri-City ED y, SoW h Valle t _ ?• ,y Southeast Industrial - �h Tri South ,a r• swm=+rysmz mvaw��s o.P.nmm:.Mnottr xawc..nsuwY sp ae.2VI o o, . + a. un ux ®IF[a Q RSG 18 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council URBANIZED PARCELS-NORTHERN PORTION EXNtBITA•2 SAN BERNARDINO MERGED AREA A 1 Y, a s , It a Cernral Ci[y North n a sf M"dowbrookrCentral City As k 2 � Central City East L ,a,„. - Central City South 4 ari Legend ` _ Vacant Parcels i p Central City Noah O Central City East Meadowbrook/Central City a i � �i Central City South s ° N Southeast Industrial Sauces GgolSan&rriamiro GlS ApammM Meuoran 00001 02 03 Oa ®Mka Q PSG. _ is § \ ; , ; {- � - _ § _ � � y 9 z � � « _ ( . � �■ - | / ! \ \ .x j � , eaea i D o0 o § ) k ® Of � SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council PHYSICAL BLIGHT AND ECONOMIC BLIGHT Section 33031(a)of the CRL describes the conditions that cause blight as follows: Physical Blight Defined ... Economic Blight Defined ... Section 33031(a)of the CRL describes Section 33031(b)of the CRL describes physical conditions that cause blight as economic conditions that cause blight in the follows: following manner: 1. Buildings in which it is unsafe or 1. Depreciated or stagnant property unhealthy for persons to live or work. values. These conditions may be caused by: 2. Impaired property values, due in a. Serious Building Code violations significant part, to hazardous wastes on b. Serious dilapidation and property where the agency may be deterioration caused by long-term eligible to use its authority as specified neglect in Article 12.5(commencing with Section c. Construction that is vulnerable to 33459). serious damage from seismic or 3. Abnormally geologic hazards a. High business vacancies d. Buildings suffering from faulty or b. Low lease rates inadequate water or sewer utilities c. High number of abandoned 2. Conditions that prevent or substantially buildings hinder the viable use or capacity of 4. A serious lack of necessary commercial buildings or lots. These conditions may facilities that are normally found in be caused by: neighborhoods, including grocery stores, a. Buildings of substandard, defective, drug stores, and banks and other or obsolete design, or construction lending institutions. given the present general plan, 5. Serious residential overcrowding that zoning, or other development has resulted in significant public health standards or safety problems.As used in this 3. Adjacent or nearby incompatible land paragraph "overcrowding" means uses that prevent the development of exceeding the standard referenced in those parcels or other portions of the Article 5(commencing with Section 32) project area. of Chapter 1 of Title 25 of the California 4. The existence of subdivided lots that are Code of Regulations. in multiple ownership and whose 6. An excess of bars, liquor stores, or physical development has been adult-oriented businesses that has impaired by their irregular shapes and resulted in significant public health, inadequate sizes, given present general safety, or welfare problems. plan and zoning standards and present 7. A high crime rate that constitutes a market conditions. serious threat to the public safety and welfare. 0 RSG 21 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS © Report to the Mayor and Common Council BLIGHT STUDY APPROACH AND METHODOLOGY RSG team members conducted a parcel-by-parcel survey from the public right-of-way ("Field Survey") on September 29 - 30, 2009.14 RSG prepared a survey instrument that provides an electronic survey sheet for each parcel within Merged Area A. Each parcel was identified by the County Assessor's Parcel Number that could be associated with the County's Assessor Maps and information. The survey sheet was designed to provide basic physical and economic information that could be derived by field inspection of Merged Area A and to record information related to the blighting conditions as defined in the CRL. The forth includes six sections: (1) Deterioration and Dilapidation; (2) Defective Design; (3) Substandard Design; (4) Use; (5) Vacancy; and (6) Photos. Each section allows the surveyor to record the existence of a particular condition, and to make field notes. The Deterioration and Dilapidation section is designed to note such conditions as: faulty weather protection; broken windows or doors; broken or deteriorated roofing materials, eaves, overhangs, or exterior building materials;damaged or missing foundations; doors or windows that are out of alignment; sagging, split or buckled roof support structure; split, leaning or buckled wall supports or columns; broken or deteriorated chimneys; and substandard exterior plumbing. The Defective Design section is designed to note such conditions as: inadequate pedestrian access, inadequate vehicular access; substandard exterior building materials; poorly constructed building additions; and a lack of natural light and ventilation. The Substandard Design section is designed to note such conditions as: inadequate loading facilities; excessive lot coverage or inadequate setbacks; garbage, debris, stagnant water, or combustible materials; outdoor storage or production; inadequate or lack of parking. © The Use section is designed to note if the use is an adult-business; if the use is incompatible with the surrounding uses; if the use appears to be a converted living space; and if the use is boarded up or uninhabited. The Vacancy section allows the surveyor to note vacant buildings and/or leasing information. The Photos section allows the photo number to be noted. Two Field Survey teams, each consisting of three team members with specific tasks, completed the Field Survey. The two teams combined consisted of one Associate (5+ years of experience in redevelopment and planning), two Senior Analysts (3+ years of experience), and three Analysts (2+ years of experience). Each team member had prior experience in conducting field surveys and all team members received training before commencing the survey. The purpose of the training was to review the specific forms, to provide examples of the types and degree of conditions that warranted recording information on the survey form. The definitions of each condition were explained and discussed and examples were reviewed to assure that each member understood the particular category. One RSG Principal (30+years of experience) managed the survey team and was available to answer any questions. The teams slowly drove through Merged Area A to adequately assess parcel conditions and stopped at parcels that needed closer examination or to photograph conditions. The teams also drove down alleys, when accessible, to survey the rear of buildings. During the survey, each team member was assigned a particular task. One member drove the vehicle and called out specific conditions they observed while another team member recorded information on the survey sheet and noted particular conditions. The third member verified the parcel location using GIS and parcel maps, took photographs, and also called out their observations. Thus, three members per team jointly made the determination of what conditions existed and to what extent. Additionally, RSG staff was accompanied by Agency staff familiar with Merged Area A. During the Field Survey, each parcel was evaluated to determine the presence of serious dilapidation or deterioration by examining building components (roof, chimney, eaves and overhangs, plumbing, exterior 11 The consulting firm retained for the Merger and Amendments is Rosenow Spevacek Group,Inc.("RSG").RSG is a redevelopment consulting fin that has been in business for over 30 years,and has worked with the Agency for nearly 20 years. O RSG zz SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council building materials, walls, foundation, windows, doors weather protection, and wiring). Survey forms were noted if one of these components was present and appeared to cause the structure or lot to be significantly deteriorated. Buildings whose structural components did not appear to have any visible signs of deterioration or showed only the beginning phases of deferred maintenance were not recorded. Buildings that were moderately or extensively in need of rehabilitation or were significantly dilapidated were noted on the survey fortes if the building condition appeared to pose a threat to safety or health. Such structures exhibited signs of long term neglect and repairs. These conditions included: sagging roofs, broken or missing windows, holes in stucco, deteriorated external building materials, exposed wiring, inadequate weather protection, roofing with missing tiles or cracked surfaces,and deteriorated door or window frames. No information was recorded if only deferred maintenance or minor repairs were needed; such as peeling paint that did not jeopardize the buildings weather protection, broken windows in otherwise kept-up buildings, or scratches or imperfection on exterior building materials that did not compromise the integrity of the structure. Factors that show evidence of defective or obsolete design were collected, such as inadequate circulation, parking, access, loading facilities, and storage of materials and garbage. Information on vacant space within buildings was noted to assist in examining Merged Area A market conditions. Names and contact information for properties with "for lease" or "for sale" signs were noted as references to gain insight from market area brokers and real estate professionals. OTHER PHYSICAL AND ECONOMIC RESEARCH The CRL definition of blight includes a number of factors that either cannot be observed from the street, or cannot be quantified based on a single parcel. To assess the presence of these other factors, RSG researched other data sources. These include: Assessor parcel information (age, size, land use, value, sale dates, etc.); code enforcement records; DataQuick information (home values and sales); environmental databases of the Department of Toxic Control Substance, State Water Resources Control Board, and US Environmental Protection Agency; Costar Market Reports (lease rates and vacancy rates); ESRI Business Analyst Reports(demographic and market data); FBI and City crime data; and US Census data. MERGED AREA A PHYSICAL AND ECONOMIC BLIGHT CONDITIONS The Field Survey was undertaken to evaluate the condition of structures and parcels, document the occurrence of vacant buildings, and locate inadequately sized lots in Merged Area A. The focus was to identify conditions that pose a health and safety threat to occupants or visitors. The Field Survey generated parcel information (2,624 parcels) in Merged Area A, covering the entire 2,390 acres of Merged Area A. RSG used the Field Survey to obtain a broad-spectrum understanding of the blighting conditions present in Merged Area A. Additional research and investigation beyond the Field Survey were also undertaken and a detailed description of both physical and economic blighting conditions found from all sources is provided throughout this Section. When possible, blighting conditions were mapped to illustrate the location and severity of a particular condition. These maps are located throughout the text of this Report. The location of physical and economic blighting conditions in Merged Area A is presented in Exhibits A-4, A-5, and A-6. Photos and descriptions of the blighting conditions observed during the field survey are presented throughout this Section. Additional photos of blighting conditions may be found in Appendix 1. O RSG 23 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council BLIGHTED PARCELS EXHIBIT A4 - SAN BERNARDINO MERGED AREA A la_ st1 "•�� - ;� Central Clty North t- x 8 d. Tf4City .- Central City East t If a c 1 .. i ---- , Legend MeadowbrooWCeMnI City ®Economic Blight 1 'F Hazardous Waste Site 011111l1111 Physical Blight Central City North Central City South rJ O Central City East Meadmbrook/Central City d c ""''•' �1_ --' �j Central City South © c 1 Southeast Industrial i Tri-Ctly f a e.i Southeast Industrial w _ �IFTTTI • Td-City South Valle M E TA r � tl Swece CRydS.n�n4rtpu GIS PgMmeN Mk(mcen arH aSG Frtl S.naY 3eP.181FNY 0 01 02 oa of os ®Mik. ®RSG Za SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the. Mayor and Common Council 4 BLIGHTED PARCELS•NORTHERN PORTION EXHIBITA-S SAN BERNARDINO MERGED AREA A . a. s�5�'w Cerdral City North e � / d x �� MeadowbrooklCentral City w °i CeMral City East ; 1 cvwrs.i +axar $ I Y CeMral City South Legend � ✓/ � b ' ® Economic Blight - _.W,..` _-•� - - Physical Blight ® Hazardous Waste Site 9 « # Central City North C Central City East _= xs�y� MO1W1 .o Meadowbrook/Centra]City Central City South - g N Southeast Industrial 4 SannS Qryol San 6«wrtLro GIS NOa.Imam Meiros[an 00mo, 02 03 Oa ®NIPs QRSG --- - ----- .._. --- ---- --- 25 N W � N W GO E Q o _ W Ss C A ri a g Y q t � ZO .+or.• � "�\ at � GG 0 Q z W £ C a e 4 = w _ v yy" E U8 as 8 zo OR, n O SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council The remainder of this Section of the Report provides a detailed analysis and discussion of the physical and economic conditions of blight remaining in Merged Area A. Below is a summary of the physical and economic blighting conditions that affect Merged Area A: • A total of 296 serious code violation occurred in Merged Area A since July 1, 2008. The most prevalent types of serious code violation in Merged Area A are trash, debris, and storage (35%) and condition of structures(27%). • As of January 9, 2010, 53% of serious code violations occurring since July 1, 2008 remain open in Merged Area. This is much higher when compared to the rest of the city of which only 38% of violations remain open. • There are 15% more unmitigated serious violations per parcel in Merged Area A than in the rest of the city. • The Field Survey identified 148 parcels, or 8% of developed parcels, that were seriously dilapidated and deteriorated in Merged Area A. The South Valle Project Area is the most severely impacted by dilapidated and deteriorated structures(23%of the parcels). • Approximately 24% of all structures in Merged Area A are 40 or more years old. Of those 19%, were found to be seriously dilapidated and deteriorated. • The number of sewer line complaints has been increasing since 2005. • There are six locations in Merged Area A that are in low pressure zones, where existing infrastructure is deficient for the purpose of providing emergency water in the event of a fire. • By 2020, water capacity demand in Merged Area A will be 45% more than the current infrastructure capacity. • There are 22 buildings in Merged Area A that are unreinforced masonry buildings that are susceptible to earthquakes. • At least 33 buildings in Merged Area A require liquefaction reports and mitigation measures. • Currently in Merged Area A, 22% of residential parcels, 18% of commercial parcels, and 34% of residential parcels do not meet minimum lot size requirements. In total, 479 lots(22%)in Merged Area A parcels do not meet minimum lot size requirements. • Out of the 479 lots that do not meet minimum lot size requirements, 231 (48%) are in multiple ownership. Of the 269 inadequately sized commercially zoned parcels in Merged Area A, 107 (40%) are in multiple ownership. Similarly, 58 (44%) of the 131 inadequately sized industrially zoned parcels, and 66 (68%) of the 97 inadequately sized residentially zoned parcels are in multiple ownership. • The northeast portion of the Tri-City Project Area is not currently served by sewer utilities. • Commercial retail sale prices have decreased by 28% since 2005 and are sold for $27.44 per square foot less than the City's average sale price. The CCS Project Area has been the hardest hit by declining sale prices and experienced a 16%decrease between 2007 and 2008. • Commercial office sale prices have remained stagnant from 2005 sale prices decreasing in value by 1%. • Industrial property sales dropped by 13% between 2007 and 2008 and dropped an additional 48%in 2009. • Merged Area A has suffered a 62%decline in median home sale price from 2005 to 2009. O RSG 27 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council • Merged Area A office lease rates are 36% less than surrounding areas. Office vacancy rates for the City, inclusive of Merged Area A, are 35.6%higher than surrounding areas. • Merged Area A industrial lease rates are greater than surrounding areas, but industrial buildings have a 36.1%vacancy rate as a result. • Merged Area A retail lease rates are$.21 to$.49 less than surrounding areas. • Merged Area A contains 66.91% of all active and 49.43%of all inactive hazardous waste sites in the City. Merged Area A also contains two of the City's eleven superfund sites. • Within Merged Area A, there are a total of 35 active liquor licenses, or 4.9 liquor licenses per 1,000 residents, compared to a total of 346 liquor licenses, 1.72 per 1,000 residents, in the rest of the City. Merged Area A also received a greater number of Alcoholic Beverage Control violations per persons in 2009 than the City. • Merged Area A has a crime rate that is 309% greater than the rest of the City. Of the 9,267 Part 1 Crimes 15 committed in the City, 12.9%of them occurred in Merged Area A. PHYSICAL BLIGHT IN MERGED AREA A CRL Section 33031(a)describes the physical conditions that cause blight. These physical conditions are assessed in terms of their impact on the health and safety of persons in the area and the economic viability of development in the area. In order to assess physical blight in Merged Area A, data from the Field Survey, MetroScan and GIS parcel data, the City's Code Enforcement Division, the City of San Bernardino Municipal Code ("Municipal Code'), and other resources were collected and analyzed to determine what conditions may be adversely affecting the health and safety of persons in Merged Area A, as well as the adverse economic conditions that result from physically deteriorating structures. Generally, as economic conditions decline there is a corresponding lack of investment in physical maintenance of properties, which further perpetuates physical blight. The location of physical blighting conditions present in Merged Area A is presented in Exhibits A-7 and A-8. The presence of these conditions reflects a lack of investment by property owners, who do not or cannot maintain their properties in a condition that assures the safety of persons who live and work in the area. Physical blighting conditions propagate further decline of an area and deter economic development activities by private investors. CRL Section 33036(a)declares that conditions of blight further perpetuate obsolescence, deterioration, and disuse of a property because they create a lack of incentive for landowners to reinvest in their properties while the conditions of neighboring properties go unchanged. -" "Part 1 Crimes include aggravated assault,burglary,criminal homicide,forcible rape,robbery,theft,and vehicle theft. ORSG 28 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council PHYSICAL BLIGHT-NORTHERN PORTION EXHIBIT A-7 SAN BERNARDINO MERGED AREA A i Central Clty NorM e U S a Illy will is '11 ., Meadowbrook/Cenhal Cly It " ! 1 5t ww. •� S Central City South y/ 1I t Legend r : — Physical Blight ro Q Central City North C Central City East e1 MMeadowbrooWCentral City a Central City South r : o : ''- N OSoutheast Industrial sa.oei an or s.,ee.rem.w�sxa �nero.a� �uwo, ua ®wa. ORSG — --- ._. --- zs r u � o dS U X d v...sm.re S yc�cj � �■ 5 O b W d { rtvsmt.x v....�.a isn o - r n t i 3 � _ c z Q g OQ • IC IxIFW'Y Y.` wis L «= ixvxn r. K J Z u V Q 2 C d U N r N U m ., d ', 0 0 N a j (Di O SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Unsafe and Unhealthy Buildings Pursuant to the CRL, the condition of buildings in which it is unsafe or unhealthy for persons to live or work may be caused by serious dilapidation and deterioration brought about by neglect, serious building code violations, construction that may be vulnerable to damage from seismic or geologic hazards, and faulty and/or inadequate water and sewer utilities. Code Violations Pursuant to CRL Section 33031(a), serious violations of local or state codes are a cause of unsafe and unhealthy buildings for persons to live or work. Buildings and structures that do not meet current uniform building requirements, or other locally mandated codes ensuring human health and safety, pose a threat to the workers, patrons, and residents of an area. Code violations, whether building code violations or other municipal code violations, can pose a threat to the safety and welfare of the community and are indicative of physical blight in an area. The City of San Bernardino Code Enforcement Department ("Code Department") inspects buildings and properties to determine whether the property's physical and environmental conditions conform to the City's Municipal Code("Code"). The purpose of the Code is to provide minimum standards to safeguard life or limb, health, property and public welfare by regulating and controlling the design, construction, quality or materials, use and occupancy, location and maintenance of all buildings and structures within the city.1' Generally, the code enforcement system is complaint based, meaning that code enforcement officers respond to code compliance complaints rather than proactively seeking code violations. While regular patrols are not scheduled, officers will initiate new cases for obvious offending properties as they travel to other inspections. Upon receipt of a complaint, a code enforcement officer will make a site visit to determine if a violation exists. If a violation exists,the property owner or responsible party will receive a violation notice and must correct the problem within a specified time period. The period varies with the type of violation cited. Failure to correct the problem results in remedial or punitive action. As is the case with many jurisdictions, code enforcement officers respond to complaints and issue citations only when the violation is significant enough to pose a threat to public welfare. Additionally, the Code Department's Rental Inspection Program requires that every single- or multi-family rental property in the city be inspected at least once a year to ensure tenants and landlords of residential rental properties comply and maintain with applicable city codes and laws. The Code Department estimated that thirty percent (30%) of single family homes in the city are rental properties and account for a disproportionately high percentage of neighborhood code violations diverting staff time and negatively impacting surrounding properties. The Agency provided RSG with a list of code violations observed by code enforcement officers throughout the city from July 1, 2008 through January 9, 2010. The Code Department has defined over 120 classifications of violations, ranging from improper placement of trash receptacles to structures that are unfit for human occupancy. Of these, 60 classifications of violations pose a threat to the safety and welfare to the community and are considered serious violations pursuant to the CRL definition of blight. Violations that merely caused an eyesore or inconvenience (e.g. animals, construction hours, nuisance, shopping carts, tree cutting) were not included as serious violations posing a threat to safety and welfare. A complete listing of all Code Department violation classifications can be found in Appendix 2. Merged Area A contains 32 serious violation classifications which are described in Table A-5. "San Bernardino Municipal Code Section 15.04.015(2009) ^� Q RSG 31 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Descriptions of Code Violations That Affect Health and Safety Table A-5 San Bernardino Merged Area A Violation Types Description Abandoned Building Buildings which are abandoned, partially destroyed, or permitted to remain unreasonably in a state of partial construction. Whenever the building or structure has been so damaged by fire, wind, earthquake or flood, or has become so dilapidated or deteriorated as to become (i) an attractive nuisance to children; (it) a harbor for vagrants, criminals or immoral persons; or as to (iii) enable persons to resort Attractive Nuisance thereto for the purpose of committing unlawful or immoral acts. - Immediately board all openings leading into the property according to Federal Housing Administration Board-Up Standards. The property owner shall immediately secure the property to prevent injury, obtain permits to rehabilitate or demolish the structure(s) and make all necessary corrections. All improvements on the property, including, but not limited to buildings, garages, carports, porches, gates, fences, doors, windows, roofs, Condition of Structures gutters, signs, permanent or temporary structures, stairs, handrails, retaining walls and trash enclosures shall be painted / preserved and maintained in good repair and condition. Paint or preservatives shall not be worn, peeling or cracking. Dampness of Habitable Room Dampness of habitable rooms. Defective or Lack of Weather Defective or lack of weather protection for exterior wall coverings, Protection including lack of paint, or weathering due to lack of paint or other approved protective covering. Deteriorated, Crumbling,or Deteriorated,crumbling or loose plaster. Loose Plaster The minimum net clear opening height dimension shall be 24 inches Egress Windows Minimum (610 mm). The minimum net clear opening width dimension shall be 20 Dimensions inches(508 mm). The net clear opening dimensions shall be the result of normal operation of the opening. General Dilapidation or General dilapidation or improper maintenance. Improper Maintenance Electrical wiring which was installed in violation of code requirements in effect at the time of installation, or electrical wiring not installed in Hazardous Electrical Wiring accordance with generally accepted construction practices in areas where no codes were in effect or which has not been maintained in good condition, or which is not being used in a safe manner shall be considered substandard. ORSG 32 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Mechanical equipment which was installed in violation of code requirements in effect at the time of installation, or mechanical Hazardous Mechanical equipment not installed in accordance with generally accepted Equipment construction practices in areas where no codes were in effect, or which has not been maintained in good and safe condition, shall be considered substandard. -The property owner shall take immediate action to correct the substandard condition. The accumulation of weeds, vegetation, junk, dead organic matter, Hazardous or Insanitary debris, garbage, offal, rat harborages, stagnant water, combustible Premises materials and similar materials or conditions on a premises constitutes fire, health or safety hazards which shall be abated in accordance with the procedures specified in Chapter 11 of this code. Plumbing which was installed in violation of code requirements in effect at the time of installation or plumbing not installed in accordance with generally accepted construction practices in areas where no codes were in effect, or which has not been maintained in good condition, or which is Hazardous Plumbing not free of cross-connections or siphonage between fixtures shall be considered substandard. - The property owner shall take immediate action to correct the substandard condition. If necessary, the property owner shall obtain permits to rehabilitate the structure(s) and make all necessary corrections. -'a No building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion Illegal Use/Occupancy thereof shall be made until the building official has issued a certificate of occupancy therefore as provided herein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of the provisions of this code or of other ordinances of the jurisdiction. Whenever any portion of a building or structure remains on a site after Incomplete Demo/ the demolition or destruction of the building or structure, or whenever Abandoned Structure any building or structure is abandoned for a period in excess of six months so as to constitute such building or portion thereof an attractive nuisance or hazard to the public. Q RSG 33 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Except for those buildings or portions thereof which have been provided with adequate exit facilities conforming to the provisions of this code, buildings or portions thereof whose exit facilities were installed in violation of code requirements in effect at the time of their construction or whose exit facilities have not been increased in number or width in relation to any increase in occupant load due to alterations, additions or Insufficient Exits change in use or occupancy subsequent to the time of construction shall be considered substandard. Notwithstanding compliance with code requirements in effect at the time of their construction, buildings or portions thereof shall be considered substandard when the building official finds that an unsafe condition exists through an improper location of exits, a lack of an adequate number or width of exits, or when other conditions exist that are dangerous to human life. Insufficient Roof/Ceiling or Members of ceilings, roofs,ceilings and roof supports, or other horizontal Their Supports members that are of insufficient size to carry imposed loads with safety. Lack of adequate heating facilities. - Dwelling units are required to have heating facilities capable of maintaining 70 degrees Fahrenheit at a point three feet above the floor in all habitable rooms. The property owner Lack of Heat must repair or replace the existing heating facilities to meet code requirements. Failure to do so within 72 hours from the date of this notice may result in the removal of the occupants. The property owner shall take immediate action to correct the substandard condition. Lack of hot and cold running water to plumbing fixtures in a dwelling unit Lack of Hot&Cold Water— or lodging house. - Water service is required in all occupied units for Home dwelling/residential purposes. Failure to restore water service within 72 hours from the date of this notice may result in the removal of the occupants. Lack of Minimum Ventilation Lack of minimum amount of natural light and ventilation required by this code. Lack of Required Electrical Lack of required electrical lighting. Lighting Lack of/Improper Bathroom Lack of, or improper water closet, lavatory, bathtub or shower in a Fixtures—Home dwelling unit or lodging house. - The property owner shall take immediate action to correct the substandard condition. Lack of/ Improper Kitchen Lack of or improper kitchen sink in a dwelling unit. - The property owner Sink in a Dwelling shall take immediate action to correct the substandard condition. Lack of/Improper Required Lack of improper operation of required ventilating equipment. Ventilating Equipment ORSG 34 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council Buildings and structures, and parts thereof, shall be deemed in a safe and sanitary condition. Devices or safeguards which are required by this Maintenance of Structures code shall be maintained in conformance with the code edition under which installed. The owner or the owner's designated agent shall be responsible for the maintenance of buildings and structures. Property maintained in such condition as to become so defective, unsightly, or in such condition of deterioration or disrepair that the same causes appreciable diminution of the property values of surrounding properties or is materially detrimental to proximal properties and improvements. This includes, but is not limited to, the keeping or disposing of, or the scattering over the property or premises, including Property Maintenance sidewalks, of any of the following: (1) Lumber, junk, trash or debris; (2) Abandoned, discarded, or unused objects or equipment such as automobiles, automobile parts, trailers, campers, boats and buses, and similar objects or equipment; (3) Any device, decoration, design, fence, structure, or vegetation which is unsightly by reason of its condition or its inappropriate location; (4)Wood or paper signs in deteriorating condition; 5 Any wall, fence or hedge. Whenever any building or structure is in such a condition as to constitute a public nuisance known to the common law or in equity jurisprudence. Immediately board all openings leading into the property according to Federal Housing Administration Board-Up Standards. - Immediately Public Nuisance board all openings leading into the property according to Federal Housing Administration Board-Up Standards. The property owner shall immediately secure the property to prevent injury, obtain permits to rehabilitate or demolish the structure(s) and make all necessary corrections. Rodent and Vermin Control Property shall be free from infestation of termites, insects, vermin or rodents. Whenever any portion thereof has been damaged by fire, earthquake, wind, flood or by any other cause, to such an extent that the structural Structural Damage strength or stability thereof is materially less than it was before such catastrophe and is less than the minimum required of the Building Code for new buildings of similar structure, purpose or location. Property shall be free of trash, litter, debris, packing boxes, lumber,junk, salvage materials, broken or inoperative fumiture, appliances, Trash, Debris, and Improper machinery, equipment, any furniture (except for furniture specifically Storage designed for outdoor use(, including, but not limited to furniture on porches, balconies, sundecks and in front yards, and any other improperly stored personal property causing an unsightly appearance. ®RSG 35 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Whenever a building or structure, used or intended to be used or intended to be used for dwelling purposes, because of inadequate maintenance, dilapidation, decay, damage, faulty construction or Unfit for Human Occupancy arrangement, inadequate light, air or sanitation facilities, or otherwise, is determined by the health officer to be unsanitary, unfit for human habitation or in such a condition that is likely to cause sickness or disease. Structures or existing equipment that are or hereafter become unsafe, insanitary or deficient because of inadequate means of egress facilities, inadequate light and ventilation, or which constitute a fire hazard, or are otherwise dangerous to human life or the public welfare, or that involve illegal or improper occupancy or inadequate maintenance, shall be Unsafe Structure deemed an unsafe condition. Unsafe structures shall be taken down and removed or made safe, as the building official deems necessary and as provided for in this section.A vacant structure that is not secured against entry shall be deemed unsafe. The property owner shall immediately secure the property to prevent injury, obtain permits to rehabilitate or demolish the structures and make all necessary corrections. Whenever the walking surface of any aisle, passageway, stairway or other means of exit is so warped, worn, loose, torn or otherwise unsafe as to not provide safe and adequate means of exit in case of fire or Unsafe Walking Surface panic. - Immediately repair or replace all damaged surfaces, and if necessary, the property owner shall immediately secure the property to prevent injury, obtain permits to rehabilitate or demolish the structure(s) and make all necessary corrections. Property which has an overgrowth of vegetation or the accumulation of debris so as to constitute a fire hazard or likely habitat for vermin. Mow, Vegetation/ Fire Hazard trim and remove all overgrown, dead, diseased vegetation within 72- Hours; and remove all miscellaneous junk, trash and debris from the property. Based on occurrences of serious violations in Merged Area A since July 1, 2008, as detailed in Appendix 2, the most prevalent are described below: • "Trash, Debris, and Storage" - 35% (103 out of 296) of all open serious violations in Merged Area A involve excessive amounts of trash and debris being stored outdoors, potentially causing a fire or safety hazard. Fire can more easily spread when there is debris strewn across an area normally devoid of material. In some cases,the amount of trash and debris stored outside was so extreme that it blocked access to the structures.Additionally, excessive trash and debris can easily rot and provide shelter for dangerous bacteria and vermin. • "Condition of Structures" - 27% (81 out of 296) of Merged Area A open serious violations were structures displaying various levels of deterioration and neglect. Unprotected surfaces, warping weather protection, splintering porch railing, and crumbling concrete stairwells are just a few of the conditions that were observed. This visible damage can lead to deterioration of the structural frame and cause wood rot and structural instability. Additionally, improperly protected or damaged exteriors allow water to seep into the interior of the structure,causing growth of mold and bacteria on insulation and plaster boards. Mold and bacteria can infect the air and cause serious health ailments such as asthma and pneumonia. ®RSG 36 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council • "Hazardous Electrical Wiring" - 6% (19 out of 296) of open serious Violations in Merged Area A involved wiring that posed significant safety threats. Dangerously exposed wires from light fixtures, outlets,or fuse boxes can easily electrocute building occupants or potentially ignite fires. Poorly wired additions or appliances are susceptible to shorts and can easily ignite fires as well. • "Maintenance of Structures" - 3% (12 out of 296) of Merged Area A open serious violations occur in structures where doors, windows, fire extinguishers, sprinkler systems, heating systems, emergency exits, and interior stairwells were broken, unusable, or blocked. These violations prevent escape or relief in times of emergency and put building occupants at serious risk. • "Hazardous Mechanical Equipment" - 3% (8 out of) of open serious violations in Merged Area A involve the improper installation of mechanical equipment. In many cases, the exhaust vents for the water heater, washer and dryer units, or the heating and air-conditioning units were installed improperly. Some mechanical equipment did not have the necessary exhaust vents at all. The exhaust gases from these machines contain can pollute the interior air and potentially poison or seriously harm building occupants. Table A-6 shows a summary of the number of serious violations per 1,000 parcels in Merged Area A compared to the rest of the city to determine the impact of serious violations on the community. Higher violations per 1,000 parcels mean higher concentrations of health and safety threats in an area. Both open and closed cases were examined to provide insight on the magnitude of open violations and provide a historic perspective of closed violation cases. Summary of Serious Code Enforcement Violations Since 71112008 Table A-6 San Bernardino Merged Area A Area Total Total Open Open Closed Closed %of Remaing Studied Area Parcels Violations Violations per Violations Violations per Violations Violations per Open Violations 1,000 Parcels 1,000 Parcels 1,000 Parcels Merged Area A 2,624 296 112.8 158 60.2 138 52.6 53% San Bernardino Excl. Merged ed Are a A 55,370 7,750 140.0 2,911 52.6 4,839 87.4 38% Are A Source:San Bernardino Code Enforcement Department as of 1108/2010;San Bernardino G/S Department A total of 296 serious code violation occurred in Merged Area A since July 1, 2008. As of January 9, 2010, 53% (or 158 serious violations) remain open in Merged Area A posing a threat to the health and safety of residents and workers. During the same timeframe, open violations in the remainder of the city have been corrected much quicker than in Merged Area A. Only 38%(2,911 violations)of serious violations remain open in the remainder of the city. The higher percentage of open serious violations in Merged Area A shows that serious violations are taking longer to get addressed there. Consequently, significant threats to the health and safety of the community persist longer in Merged Area A. There are 62.2 open serious violations per 1,000 parcels in Merged Area A, which is approximately 15% greater than the remainder of the city(52.6 open serious violations per 1,000 parcels)." In other words, there are 15% more unmitigated serious violations per parcel in Merged Area A than in the rest of the city. This higher concentration of open violations illustrates that property owners are more likely to neglect their properties in Merged Area A. Additionally, higher concentrations of neglect can lead to negative perceptions "To compare the magnitude of violations across the two different areas,the number of violations in each area was divided by the ^•� number of parcels of each respective area. (qRSG 37 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council of the area, inciting even further neglect by property owners who do not believe there would be value in maintaining their properties. The 158 open serious violations in Merged Area A are located on 63 parcels. Most of these violations occur in the residential areas of Central City North, Central City East, and South Valle Project Area. Exhibits A-9 and A-10 show the locations and quantity of open serious violations in Merged Area A. O RSG 38 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council EXISTING HEALTH AND SAFETY CODE VIOLATIONS-NORTHERN PORTION EXHIBITA-9 SAN BERNARDINO MERGED AREA A F y Cemrel Ciry North _ f s � xnu.rn vi v ��.• . [U¢i6- 3 � .n.... '[ •S aamwnm W.'vfi.ui •0.. 8 Meadowbrook7Cernral City "'°"' k y i Cemrel OiIY East IF .1.1. •••e. �' .n.0 ,yA Central City South Legend Number of Serious F..,. 11 ...,,, IT 5 ` Central City North Open Code violations .ucs s. S e Central CRY South �.,,... • 2 i O Southeast Industrial Park 3-4 U.,.µ.w....• Meetlowbrook/Centrel City • a 5-6 a K Central City East . ,,,, ,....,.,All 7-B s Sources:Sources:San Semardino Code Enforcement Department. 0 0.1 02 0.4 0.6 0.8 San Semardino GIS Deparrmem Miles kW SG _ j 39 § E : E - § � - k \ 77 cc , ( - 1 ®\ : . | - ` } � ■ ) ! � 0 § � SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Dilapidation and Deterioration The Field Survey found 148 parcels had structures that were seriously dilapidated and deteriorated and are illustrated in Exhibits A-11 and A-12 at the end of this discussion. These structures were fairly well spread throughout Merged Area A, however the CCN and South Valle Project Areas had the highest concentrations of dilapidated structures. Table A-7 below shows a summary of the deteriorated and dilapidated structures observed in Merged Area A. In the South Valle Project Area, 23% of the developed parcels had structures that showed signs of significant deterioration and dilapidation. The same is true for 10% and 9% of the developed parcels in the CCN and CCS Project Areas, respectively. By the time this level of deterioration is visible to the street, the damage warrants major and costly repairs(see Figure 1). To compound the physical blight, this visible deterioration can incite further disinvestment in the immediate area, causing other property owners to neglect their properties and possibly deflating property values.to Summary of Observed Deterioration and Dilapidation Table A-7 San Bernardino Merged Area A Number of Parcels with %of Area Developed Deterioration and Parcels with Deterioration Project Area Dilapidation and Dilapidation Central City East 18 7% Meadowbrook/Central City 0 0% Central City North 46 10% Central City South 29 9% South Valle 42 23% Southeast Industrial 13 4% Tri City 0 0% 148 8% Source:Field Survey of Sept.29 and 30,2009 Serious structural dilapidation and deterioration indicates a prolonged lack of maintenance and can pose significant hazards to the health and safety of those who use the structure. For example, faulty or missing weather protection leaves the underlying support structures exposed. Water can easily enter the structure, causing the interior wood to rot and grow mold, seriously affecting the interior air quality and structural integrity. This poses significant health risks to those who occupy and use the structure as breathing mold- infected air can lead to pulmonary infections and pneumonia. Furthermore, rotting support structures are less able to support the loads for which they were designed and can lead to the roof and ceiling materials collapsing onto those who use or occupy the structure. Sagging and broken rooftops expose the underlying structure to the elements as well, but also can allude to a shifting in the structural frame and foundation. Such damage compromises the structural integrity of the building and can lead to condemnation or even collapse if not quickly remediated. Exterior power wires that are not properly tied together or fastened to the structure, such that they can be easily detached or reached by children, pose a significant safety hazard as they can easily fall and cause fires or electrocute building occupants. The following photos and descriptions of buildings in Merged Area A are a sampling of the buildings which showed significant deterioration and dilapidation as observed during the Field Survey. The remaining photos and descriptions of blighted buildings and properties observed during the Field Survey can be found in Appendix 1. "Robert A.Simons,Roberto G.Quercia,and Ivan Maric,'The Value Impact of Nev,Residential Constriction and Neighborhood ""O Disinvestment on Residential Sales Price,"Joumal of Real Estate Research,1998, 147. Q RSG r41 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Photos A-1 and A-2: This multi-family residential structure on East 5th Street in the CCE Project Area is seriously dilapidated. The front exterior wall is missing siding where an awning used to be attached, leaving the interior insulation and support structure exposed to the elements. Water can easily enter the structure, causing the interior wood to rot and grow mold, seriously affecting the interior air quality and structural integrity. This poses significant health risks to those who occupy and use the structure as breathing mold-infected air can lead to pulmonary infections and pneumonia. The roof is not finished and has its beams exposed. All the windows are boarded and the front door is out of alignment. This suggests that the foundation is deteriorating and is no longer able to fully support the weight of the structure. The building has been neglected for quite some time and its questionable structural integrity poses a safety threat to those who may use it. Further deterioration to the roof or foundation could easily lead to roofing materials and supports caving in or collapsing on those inside the building. O RSG T 42 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council � L iq r fx Photos A-3 and A-4: This single family residence on Gardena Street in the South Valle Project Area suffers from many years of neglect. Both pictures above show deteriorating eaves and warping exterior siding. The storage shed lacks proper roofing and instead uses plastic tarps to keep out water. Water can easily enter the structure, causing the interior wood to not and grow mold, seriously affecting the interior air quality and structural integrity. This poses significant health risks to those who occupy and use the structure as breathing mold-infected air can lead to pulmonary infections and pneumonia. The bottom picture shows and extreme amount of dangerously exposed exterior wires that sag down to chest level and are precariously attached to both structures on the property. This is a significant fire and safety hazard as these wires could easily detach for many reasons and ignite any one of the many pieces of refuse that litter the yard. Wires leading to the shed may mean that it has been illegally converted into another residence, the substandard conditions of which would pose serious health and safety hazards. O R,SG 43 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council r \ i ' t Photo A-5: The roof of this single family dwelling on Arrowhead Avenue in the CCS Project Area is warped and sagging, which suggests that the foundation has been compromised and can no longer support the weight of the structure. The building poses a safety threat to those who occupy it as it in danger of collapsing on them. In addition, the building has holes and cracks along the base of its side wall near the structure's foundation. Water, mold, and pests can easily enter and rot and infect the interior of the structure, rapidly deteriorating the supports and foundation thus further compromising the building's structural integrity. Mold will infect the air, putting the building's occupants at risk for pulmonary infections and pneumonia. Furthermore, the house has multiple broken windows leaving the building's interior vulnerable to poor weather conditions and representing disinvestment by the property owner. ®RSG 44 r SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council ^] Photo A-B: This single family residence on Spruce Street in the CCN Project Area exhibits a number of physical deterioration and dilapidation conditions. The eaves and overhangs are deteriorated and no longer protected from the elements. The exterior wood paneling comprising the fagade of this property has holes and cracks throughout and lacks an adequate layer of weather protection. Water and bacteria can easily enter the interior of the structure and rot the frame or cause significant health issues through the increased growth of mold. Mold will infect the air, putting the building's occupants at risk for pulmonary infections and pneumonia. At the point where the main power lines connect to the structure, there are exposed, open-ended wires which pose a significant fire and safety hazard. Furthermore, the building addition shown at the right of the photo was constructed of plywood sheets, a substandard building material, and may not be structurally sound. Those who use this part of the building may be in danger from falling debris. O RSG --—T 45 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council I Al� r -11-1. r.. Photo A-7: The building materials on this structure on Gardena Street in the South Valle Project Area are broken and damaged and do not appear to be structurally sound. The exterior of the building is extremely damaged with whole pieces of siding falling off and away from the structure. This is a serious danger to anyone who uses or walks near the building as they may be injured by falling building materials. In addition, the site is littered with garbage, debris, and potentially harmful materials. ORSG 46 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 0 r i Photo A-8: The structure on this property on Caroline Street in the South Valle Project Area exhibits faulty weather protection. The building's eaves have cracked and become worn and have, in some cases, been hastily replaced by untreated sheets of plywood. The roofing materials have also warped and cracked in many places. Water can easily enter the structure, causing the interior wood to rot and grow mold, seriously affecting the interior air quality and structural integrity. This poses significant health risks to those who occupy and use the structure as breathing mold-infected air can lead to pulmonary infections and pneumonia. There are also open-ended electrical wires dangling from the exterior light fixture which pose a significant safety hazard as they can easily fall and cause fires or electrocute building occupants. Furthermore, a shed or storage container in the back appears to have been converted to a living space, as a cable satellite has been installed on top of the structure. 1 Q RSG _ 47 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council lr. ., P ! t Photos A-9 and A-10: The industrial buildings shown in the above pictures are on Stoddard Street in the CCS Project Area. In the first picture, the structure's roof is warped and sagging and the tiles are peeling away from the structure itself. This presents structural safety hazards as either the foundation or roof supports (or both) are damaged to the point where the roof itself warps in such an erratic fashion. The roof and supports could potentially fall on a person who uses or walks near the building. Additionally, this dilapidated roof cannot adequately protect the interior from the elements, promoting further deterioration. As can be seen in the bottom photo,the structure has holes peppered across its walls and near its foundation. If not repaired, such conditions could lead to additional deterioration, further jeopardize the structure's integrity, and allow mold to grow on the interior frame and insulation. Breathing mold-infected air can lead to pulmonary infections and pneumonia. ORSG as SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council As buildings age, It is normal for them to experience certain levels of deterioration and dilapidation. Typically, this is mitigated by regular maintenance and general upkeep of the structure and surrounding property. However, lack of maintenance will allow normal wear and tear to accumulate, deteriorating the structure to the point where it may be unsafe and unhealthy for people to use. Figure A-1 provides an illustration of the economic realities if routine building maintenance is not undertaken in a timely manner. First minor and then major building failures occur over time. The cost of renovating the building increase exponentially over the years. Ultimately, structural failures occur and the building cannot be recovered. Conversely, if preventive maintenance to address normal wear is routinely accomplished, the building's structural integrity is maintained. Frequent investment into routine maintenance is the best way to assure the long-term integrity of a structure. Figure A-1 Illustration of Relationship Between Maintenance and Cost Snuctood fail ------------------------------------ 7 Stmcmre not usable _________________________________ Sterl of major failures C o. Major repair Start of minor failures B `00.' � _____________ ------- ------ Minor repair tic sl wear A Preventive Time in years maintaunce Total cost of major repair(C) Total cost of minor repair(B) Total cast of preventive maintenance(A) PREVENTIVE MAINTENANCE(bottom line)not only costs markedly less in aggregate than repairing building failures,it reduces human wear and tear. A building whose systems are always breaking or threatening to break is depressing to the incentives,and that brings on another dimension of expense. This diagram is adapted from Preventive Maintenance of Buildings(New York:Van Nostrand Reinhold, 1991),p3. Dilapidation and deterioration are a natural phenomenon of aging structures where routine maintenance and upkeep are deferred for extended periods of time. By nature, older structures are more difficult to rehabilitate and, as structures age, rehabilitation becomes more expensive due to the need to bring buildings up to current building code. As stated in Stewart Brand's book, How Buildings Learn; What Happens After They're Built, a lack of maintenance results in buildings becoming unusable,with the threat of structural failure. Brand states that: "...due to deterioration and obsolescence, a building's capital value (and the rent it can charge) about halves by twenty years after construction. Most buildings you can expect to completely refurbish from eleven to twenty-five years after construction. The rule of thumb about abandonment is simple...if repairs will tout half of the value of the building, don't bother." O RSG 49 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council It is no surprise, therefore, that a structure's condition is often directly correlated with its age. According to data obtained through the Metroscan database, approximately 24% of all structures in Merged Area A were built 40 or more years ago. CN those, 19% were found to have significant levels of deterioration and dilapidation during the Field Survey. Looking at it another way, 77% of all the buildings that were found to have significant levels of deterioration and dilapidation are 40 years of age or older. ORSG 50 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council DETERIORATED AND DILAPIDATED STRUCTURES -NORTHERN PORTION EXHIBITA-11 SAN BERNARDINO MERGED AREA A 3 �� P� Y Central City North ■�,' 1cr s ou a MeatlowbrooWCeMral CRY n F Wre, 3. it j,Central City East I.1 IT IT f •itVL `� i s,> � > awu d.: n'c..�—� :w.[ � . >i cwu•"..m s L d�s Central City South Legend - '' g - Deteriorated and Dilapidated _ Structures t Q Central City North 11 3 3 Central City South _ e,Fb w«."+, • F £ QSoutheast Industnal Park 71 MeadowbrookrCentral City 3 N [_I Central City East E Sources:RSG Field Survey. September 2009 0 0.1 0.2 0.4 0.6 (18 Miles OR S G - -- - -- --- - - - ---- ---- -- -- --51—. N F V W JO h V W # i f G t b s 4'�9M1 c p 3 N z I o Y J p 2 O Q o O SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Faulty or lnadecuate Sewer Utilities According to Section 33031(a)(1) of the CRL, faulty or inadequate sewer utilities may cause unsafe or unhealthy conditions in buildings in which people work or live. Damaged, broken, or blocked sewer lines can cause raw sewage leaks and spills which may pollute groundwater sources or create unsanitary conditions in the adjacent buildings and streets. Certain diseases, such as Norwalk Virus1s or Giardiasis20, can be contracted by coming into contact with or ingesting water or infected seafood that has been contaminated by raw sewage. The San Bernardino Department of Public Services ("DPS") inspects and maintains the sewer systems throughout the City. Issues related to sewer system functions are brought to the attention of the DPS either through complaints or through a proactive inspection process that seeks to inspect every sewer line in the City over a five-year period (2008-2012). The DPS has provided RSG with the inspection reports for sewer lines in Merged Area A from the last three years; these reports relate the quality and severity of issues encountered during both complaint-driven and routine inspections. Table A-8 summarizes the sewer pipe inspections in Merged Area A that occurred from 2006 through 200821, the issues uncovered during those inspections, the severity of the problems, and whether these issues were found due to complaints or through routinely scheduled inspections. 1B Information on the Norwalk Virus can be found on the California Department of Heath Website- http://wvvw.odph.ca.gov/Healthinfo/disewd/Pages/Nomvims.aspx d0 Information on Giardiasis can be found on the California Department of Health Website- hUpJty .cdph.oa.gov/HeafhinfQ/discond/Pages/Giardiasis.aspx "Inspection reports for 2009 have not been included as the year has not yet come to a close. Q RSG 53 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Sewer Line Inspection Reports Table A-8 San Bernardino Merged Area A Complaint or Routine Location Inspection Observed Issues Severity 2006 Sagging sections, multiple cracks, medium amount of roots penetrating through Court & Sierraway Complaint walls, and severely offset joint Severe 2007 Esperanza and Multiple cracks and sagging Arrowhead Complaint pipe Mild 2008 7 & Mayfield Complaint Sinkhole Severe Heavy amount of roots penetrating through walls, and Inland Center& Adell Complaint broken pipes Severe Restricted flow and multiple 2ntl & Lugo Complaint broken pipes Severe Restricted flow, moderately offset joint, multiple minor 2o, & Mt. View Complaint broken pipes Moderate 4 & F Routine Tilting pipe Mild Arrowhead south of Esperanza Routine Sagging pipe Mild 690 Arrowhead Routine Sagging pipe i Hole in top of pipe and small amounts of debris found in Oak east of D Street Routine pipe Moderate The above summary shows that most of the moderate and severe issues were uncovered due to complaint- initiated inspections and that the number of complaints has been increasing over time. The severe problems required immediate attention and expensive remediation, generally resulting in the replacement of sections of pipe. According to the DPS, installation of new sections of pipe can range from $500 to $2,000 per foot, depending on the difficulty of the installation. Moderate issues, however, were resolved through more expedient and less expensive temporary repairs, such as adding additional lining to pipes with minor cracks or cutting out medium sized root systems that had penetrated the pipes. While these problems may have been temporarily fixed, the underlying issues that caused the damages were not necessarily alleviated and will likely cause more damage in the near future. Replacing multiple sections of sewer pipeline is prohibitively expensive. Furthermore, the increasing number of severe problems occurring illustrates that the sewer system may need more than just temporary repairs. O RSG 54 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council As more problems begin to surface, health and safety risks will increase as well. This, combined with the '^ resulting odor of a failing sewer system, may hamper the successful redevelopment of the area. Faulty or Inadequate Water Utilities Section 33031(a)(1)of the CRL states that faulty or inadequate water utilities may cause unsafe or unhealthy conditions in buildings in which people work or live. Of the many ways an inadequate water utility can affect the health and safety of building occupants, deficient flow of water to fire hydrants puts people and buildings at particular risk in the event of a fire. Deficient Fire Flow The Water Facilities Master Plan ("WFMP") prepared for the San Bernardino Municipal Water District ("SBMWD") in 2007 identifies seven specific locations in its lower pressure zone where the existing infrastructure is deficient for the purposes of providing emergency water in the event of a fire.22 According to the SBMWD, only one of these deficient areas has been remediated, leaving six deficient areas remaining. Of these six areas, three are in Merged Area A which covers less than a third of the lower pressure zone. Below is a summary of the locations and issues involved with the three areas that have deficient fire flow. i Location Description Southwest of Waterman Ave. Local lines in this area are not properly integrated with the larger and Central Ave. transmission lines in the area. Additional ties along Waterman Ave. and Central Ave. are recommended and approximately 3,000 feet of 12-inch diameter replacement pipelines are needed in this area to augment fire flow capacity. South of 3rd St. between Mt. The distribution facilities in this commercial and industrial area are Vernon and G St. significantly deficient as the existing 6-inch and 8-inch pipelines have limited transmission capacity. Approximately 12,000 feet of replacement transmission lines ranging in diameter from 12 to 20 inches are needed in this area to correct the existing deficiency. East of Waterman and south This is a localized fire flow issue at the easterly end of Commercial of 10 Freeway Road as the existing 6-inch pipeline is not capable of handling the required fire flow. The construction of 1,300 feet of 12-inch diameter pipeline along Commercial Road is needed to address the current deficiency. The WMFP further states that the cost to replace existing pipeline is approximately $120 per linear foot23. Therefore, the cost to install pipeline that can sufficiently handle fire flow demands in these areas will be $360,000, $1,440,000(+), and$156,000, respectively, totaling almost$2 million. 33 The lower pressure zone is the largest pressure zone in the SBMWD's service area and generally covers the area south of Baseline Street to the southedy border of the City of San Bernardino. 33 The WMFP quotes the replacement cost for new 8-inch pipe at$120 per Ioot.The cost to install new 12-inch and 20-inch pipeline sufficient for fire-flow will be significantly higher. Q RSG �b5 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council While the SBMWD has identified the costs to upgrade the facilities, the responsibility of paying for most of the upgrades falls upon the private developers who wish to build in these areas, due to increased demands on infrastructure capacity.According to the San Bernardino Fire Department, property owners are responsible for the cost of installation of fire hydrants as well as the delivery facilities to those hydrants that serve their property. The deficient fire flow to these areas proves to be a significant safety hazard and hinders the viable use of adjacent property. The additional cost of upgrading these pipelines, which currently must be borne by the developer, may prevent the redevelopment of these properties, therefore prolonging the safety hazards resulting from significantly deficient fire flow. Insufficient Capacity Another issue related to inadequate water utilities is the ability for the water distribution system to adequately deliver water to meet the demand of all uses that are served by it. The WFMP states that while currently meeting demand, the existing system will not be able to meet the projected demand in 2020. Currently, the supply capacity is approximately 29,000 gpm (gallons per minute). By 2020, demand is expected to grow 42,000 gpm in the low pressure zone, which is approximately 13,000 gpm (45%) greater than the existing supply capacity. To meet this demand and to account for what might be the greatest demand during peak usage times, the WFMP projects that an additional 21,300 gpm supply will be needed. This would require additional water supply, storage facilities, pumping stations, and delivery facilities. As 2020 is only ten years away, redevelopment funds may be a necessary source to assist in financing what will surely be an expensive capital improvement project. Construction Vulnerable to Seismic or Geologic Hazards According to CRL Section 33031(a)(1), construction that is vulnerable to serious damage from seismic or geologic hazards is a physical condition of blight causing buildings to be unsafe or unhealthy for persons to live or work. In 1986, California chaptered Senate Bill 547 requiring every jurisdiction in Seismic Zone 4 to inventory its buildings constructed of unreinforced masonry by 1990, to adopt a loss reduction program, and to report progress to the Seismic Safety Commission. The City lies within Seismic Zone 4, and has two major fault lines—the San Andreas and San Jacinto Faults—running under the city. The last significant earthquake on the San Jacinto Fault occurred in 1968 and had a magnitude of 6.5. There have been no major quakes on the South Branch San Andreas Fault in recent history. Both of these faults are considered by the USGS to be overdue for a major earthquake, and are both capable of earthquakes measuring more than 7.5 on the Richter Scale24. Within the next 30 years, the USGS predicts that there is a 59% chance of a 6.7 or larger earthquake occurring on the Southern San Andreas Fault, and a 31% chance of a 6.7 or larger earthquake occurring on the San Jacinto Fault. Structures lacking modern earthquake-resistant design present health and safety risks in the event of seismic activity. The City's Building Department maintains the list of unreinforced masonry("URM")buildings throughout the City. An ordinance establishing a program for mitigation of seismic hazards associated with buildings containing URM bearing walls was adopted by the Common Council in 2006.25 The purpose of the Ordinance is to minimize the potential collapse of buildings that are not earthquake safe. The Ordinance is only applicable to buildings that contain at least one URM bearing we 11.26 As depicted in Table A-9, there are 22 buildings on the City's URM list in Merged Area A. Of the 22 URM buildings, 16 have not had any type of retrofitting. During earthquakes, these structures pose a significant threat to the safety and welfare of people in or near the buildings. Of the 16 non-retrofitted buildings in Merged Area A,three have been vacant for more than one year. According to the City Ordinance, these building cannot be occupied until they have been successfully retrofitted. While this reduces safety risks during earthquakes, it also perpetuates increased vacancy rates, which is another indicator of blight, as described in the Vacancy and Lease Rates Section below. The current cost of retrofitting a URM building generally exceeds $25,000 and is a deterrent to siesmic retrofitting.27 According to Agency staff, the Agency previously allocated $150,000 to a fund to help defray the cost of 2d USGS,Forecasting California's Earthquakes,April 14,2008,htto Ho ubs u a /fs/2008/3027/fs2008-3027 odt. s The"Hazard Mitigation Reduction in Unreinforced Masonry Buildings"was adopted by City Council on February 21,2006. a City of San Bemardino"City of San Bernardino Municipal Code"htto://www.ci.san- bemard'no ca.us/civ ica/filebank/blobdioad.asv?BlobfD=2554. n Chris Richard,"Seismic Safety on Shaky Ground;The Press Enterprise,March 31,2008. (qRSG 56 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council retrofitting URMs within the City, but the fund was eventually closed without any of the funds being used. Property owners indicated that, despite the Agency support, the cost of retrofitting the URMs remained too high. In addition to the 16 unreinforced masonry buildings in Merged Area A, a five-level parking structure that serves City Hall and the Carousel Mall also fails to meet current seismic building standards. According to a 1994 engineering survey, the structure "does not have adequate strength to resist code predicted seismic design loading". Unreinforced Masonry Buildings Table A"9 San Bernardino Merged Area A Merger Area Address Status Vacant Since Retrofit Cost Estimate CCN 467-073 W 4th St Occupied $99,700 CCN 376 N D St Occupied $34.600 CCN 362-366 N D St Occupied $81,000 CCN 377 N E St Retrofitted CCN 584 W 5th St Retrofitted CCN 350-360 N D St Retrofitted CCN 361-369 N E St Retrofitted CCN 475 W 4th St Retrofitted CCN 479 W 4th St Retrofitted CCN 474 W 5th St Vacant Closed 12/04 $21,000 CCN 370 N D St Vacant Closed 1/04 $37,000 M/CC 157 N E St Occupied Not Available M/CC None-Parking Structure Occupied CCE 116-122 E 3rd St Occupied Not Available CCS 408 S Arrowhead Ave Occupied $2,500 CCS 299 S E St Occupied Not Available CCS 207 S E St Occupied Not Available CCS 239 S E St Occupied $11,300 CCS 304 S E St Occupied $9,000 CCS 186 S G St Occupied $81,000 CCS 777 W Rialto Ave Occupied Not Available CCS 355 S E St Reduced Occupancy $7,300 CCS 170 S E St Vacant Closed 1989 $29,000 'Retrofit Cost Estimates were conducted in 1993. Current costs may be higher. Source:City of San Bernardino A report on URM buildings prepared by the USGS in 2008 states that unreinforced masonry buildings have performed poorly in earthquakes due to their "inherent brittleness, lack of tensile strength, and lack of ductility."za According to the Northern California Chapter of the Earthquake Engineering Research Institute ("EERI"), with unreinforced masonry, walls tend to disconnect from buildings and fall outward, sometimes causing the building to collapse during earthquakes. EERI further claims that, "URM [unreinforced masonry] failures have been responsible for deaths in California Earthquakes since at least 1868, and as recently as Loma Prieta in 1989 and San Simeon in 2003." A secondary seismic concern within Merged Area A is liquefaction. Liquefaction is defined by the US Geological Survey as a "physical process which can occur during an earthquake [in which] clay-free soil as R.Hess°Unreinforced Masonry(URM)Buildings"The Shakeout Scenario Supplemental Study,United States Geological Survey,May 2008. Q RSG 57 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council deposits(primarily sands and silts)temporarily lose strength and behave as viscous fluids, resulting in ground failure." This "has been the cause of considerable damage during earthquakes." All of the CCS, CCE, and Tri-City Project Areas fall within a high-risk liquefaction zone, as do portions of the CCN, M/CC, SEIP and South Valle Project Areas. The area is high-risk due to its location within the regional groundwater basin known as the Bunker Hill Basin. Due to the unique hydrogeology of the Bunker Hill Basin,the western portion of the basin in and around the Downtown area of the City of San Bernardino can be characterized as an artesian aquifer and has been designated as a"Pressure Zone" by the U.S. Geological Survey. Uniquely high groundwater levels in this western part of the basin have created structural problems in the past from water damage to subterranean structures.'a Liquefaction is an ongoing risk in the event of an earthquake in the area. Groundwater management agencies in the area must therefore carefully balance basin replenishment and extraction activities to maintain lower-risk groundwater levels. Paragraph A 14 of section 15.08.50 of the San Bernardino Municipal Code describes buildings that require liquefaction reports and mitigation measures. These standards require reports and mitigation measures for buildings of more than two stories, and for various public gathering places, such as churches and stadiums, and essential facilities, including police and fire stations, schools, and hospitals. Possible mitigation measures are not described in the Municipal Code, but frequently include a variety of densification, hardening, or structural techniques.30 At least 33 buildings within Merged Area A meet the City's current standard to require liquefaction reports and mitigation measures. Of these buildings, construction dates are available for 11, and 5 of those buildings were built before 1989, when the current standards for mitigating liquefaction risks were adopted. The locations of URM buildings in Merged Area A relative to the San Jacinto Fault and high-risk liquefaction zones are shown in Exhibit A-13. Sample photographs and descriptions of URM buildings follow. RD San Bernardino Valley water conservation District,Municipal Service Review(2003),p.3. 30Southern California Earthquake Center,"Guidelines for Analyzing and Mitigating Liquefaction in California,"March 1999. u O RSG 58 SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council URMS AND LIQUEFACTION RISK EXHIBITA-13 SAN BERNARDINO MERGED AREA A Central City East Central City North — _—T-F _ tc Legend • URMs u Merged Area A - --- — San Jacinto Faun i -- for IT MeadowbrooklCentral City High Liquefaction Risk I Q Central City North Central CRY East t a Q Meadmbrook/Central City u' � • �s�r ��Central City South 11f a Q Southeast Industrial Central City South - C�_._ Tri-City w.,. South Valle 3 d - � d 6 t; i Southeast indratrial IT all .w LJ a� - °" I .c .. - r { Tn City �r ar�a.. South Valle a. NJ Sri c:.yasa+eerrwNmdS npraMnnr lblrofc.nap as6Fatl5vp yp N3Ni 0 0 o] ra os oe ®alike O RSG _ 59 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Photo A•11:This unreinforced masonry building,.located at 299 South E Street, exhibits several signs of physical blight, including a roof that is sagging and buckling and a dilapidated, poorly constructed addition that was built of substandard materials. Both conditions could lead to unsafe or unhealthy conditions in the building. The building is occupied by an auto glass tinting business and an auto speaker business. O RSG 60 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council i i it a A � { L Photo A-12 and A-13: This unreinforced masonry building at 304 South E Street houses an adult bookstore. Its roof has deteriorated to the point that it no longer provides effective weatherproofing, and could lead to unhealthy conditions and further damage to the building. . ORSG 1 61 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council The proposed Merger and Amendments will ensure the Agency has the financial capacity to continue to address unsafe buildings, such as the URM buildings described above, through the projects and programs described in Section B. Conditions Hindering the Viable Use or Capacity of Lots or Buildings Pursuant to CRL Section 33031(a)(2), a building's or lot's viable use or capacity may be prevented or substantially hindered by substandard, defective, or obsolete design or construction under the current general plan, zoning, or other development standards. For the purpose of this analysis, viability is defined as"capable of working,functioning or developing adequately and financially sustainable "31 Substandard Lot Sizes Chapter 19 of the Municipal Code, referred to as the City of San Bernardino Development Code ("Development Code"), sets forth the building requirements and zoning regulations to assure that development throughout the City is safely achieved. The purpose of the Development Code is to provide minimum building, construction, and development standards by zoning designations throughout the City. These provisions are enforced to protect the safety, health, peace, and general welfare of the public, as well as to ensure orderly development throughout the City. Table A-10 presents data on lots which do not meet lot size requirements based on the Development Code.12 The Development Code requires that lots meet size requirements to be developed or redeveloped to the development standards under current zoning. Existing buildings on lots which do not meet these standards may remain, however, if these lots were to be redeveloped they would need to meet the current standards. Currently in Merged Area A, 22% of residential lots, 18% of commercial lots, and 34%of industrial lots do not meet size requirements. Many of these lots were developed and occupied under prior zoning regulations or before the establishment of lot size requirements. Lot size requirements were imposed to promote and protect public health, safety, and welfare. Exhibits A-14 and A-15 illustrate locations throughout Merged Area A where lots do not meet size requirements. - " "Viability." Merriam-Websters Collegiate Dictionary. 10"ad. 1998. 12 Refer to Appendix 2 for a summary of building,construction,and development standards. O RSG 62 SAN BERNARDINO MERGED AREA A MERGER 8,AMENDMENTS Report to the Mayor and Common Council Lots Which Do Not Meet Size Requirements Table A-1 San Bernardino Merged Area A Number of Total Number Project Area Zoning Inadequate Lots of Parcels t Percentage CCS Commercial 177 390 45% Industrial 84 157 54% Residential 0 0 0% Total 261 547 48% CCE Commercial 50 128 39% Industrial 0 0 0% Residential 23 177 13% Total 73 305 24% MICC Commercial 16 154 10% Industrial 10 24 42% Residential 0 2 0% Total 26 180 14% CCN Commercial 1 339 0% Industrial 0 0 0% Residential 73 231 32% Total 74 570 13% South Valle Commercial 11 148 7% Industrial 9 92 100/ Residential 1 29 3% Total 21 269 8% SUP Commercial 8 242 3% Industrial 28 107 26% Residential 0 0 0% Total 36 349 10% Tri-City Commercial 6 77 8% Industrial 0 0 0% Residential 0 10 0% Total 6 87 7% Project Area Commercial 269 1,478 18% Industrial 131 380 34% Residential 97 449 22% Total 497 2307 22% 1/Total parcels include only commercial, residential,and industrial parcels. 120 Special Purpose District parcels(public facilities), 5 Right-of-Way parcels, and 2 Railroad parcels were not included because they do not contain minimum lot standards. There were also 70 parcels which didn't contain the necessary data to analyze and were also not included. Source:First American MetroScan Information Service&San Bernardino City GIS Q RSG 63 SAN BERNARDINO MERGED AREA A MERGER 8,AMENDMENTS Report to the Mayor and Common Council LOTS NOT MEETING SIZE REQUIREMENTS -NORTHERN PORTION EXHIBITA-14 SAN BERNARDINO MERGED AREA A Central City North O F 1,1 y y a 1 9 �- 4,, ,,t Meadowbrook/Centrel Cay - `' � > � _ Central City East LM kik � a i e ANiI PY111 �, •.—.t � iir � L I { i S a – - i I T � - � , �. 'Y t` Central City South Legend :'� A i�i ;y if• .:i...— - —1 TF- _ Lots Not Meeting ,yam Size Requirements O Central City North '�� ' •` -"' a; Y Central City South -- �Southeast Industrial Part N Meadowbrook/Central City d! n Central City East AON 0 Sources:ESRI, City of San Samardino GIS Department, 0 0.1 0.2 0.4 0.8 0.8 and MetroScan Mlles ORSG _ _------_ ____ 64 Z C O r 2 a6 V m E I ssxs � � � � i �� 3 •y �I 11aV60Yl L � �I W L p� h Sig _. 18,818 3 M cc Z i uF E. VxoeFOF I S /)1 DO 1 § a + a # o p ffi i i yyF- C W v m _ LX o.. ME�. e rc p� r 5 c u f f W O f o U u — U r Z� @ r K U c � w o W � I^ V O SAN BERNARDINO MERGED AREA A MERGER 8,AMENDMENTS Report to the Mayor and Common Council Financial Viability of Lots Not Meeting Size Requirements The financial viability of lots not meeting size requirements was examined for Commercial General ("CG-1") and Industrial Light ("IL") zones. CG-1 and IL zones were selected because they contained the greatest concentrations of lots not meeting size requirements in Merged Area A. CG-1 lots represent 23% of all commercial lots not meeting size requirements and IL lots represent 79%of all industrial lots not meeting size requirements. Table A-11 provides a summary of the median size of lots which do not meet size requirements in the CG-1 and IL zones. The Development Code states that lots in the CG-1 zone should be at least 10,000 square feet and that lots in the IL zone should be at least 20,000 square feet. As shown on Table A-11, the median size of lots in the CG-1 zone which do not meet size requirements is 6,281 square feet, or 37% less than the requirement. The median size of lots in the IL zone which do not meet size requirements is 6,912 square feet, or 65%less than the requirement. Analysis of Substandard Sized Lots Table A-11 San Bernardino Merged Area A Commercial Industrial General(CG-1) Light(IL) (Square Feet) (S ware Feet Median Lot Size 6,281 6,912 Source:First American MetroScan Information Service 8 San Bernardino City GIS Development pro formas for CG-1 and IL zoned lots which do not meet size requirements were prepared using the median lot sizes shown in Table A-11 to determine if it is feasible to develop or reinvest on lots of this nature while maintaining profitability. The pro formas show that new development on CG-1 and IL lots is not financially viable because the revenues resulting from the new structures would not cover the costs to construct the buildings. In other words, there is a financial feasibility gap for projects constructed on CG-1 and IL lots which do not meet size requirements, because of the development restrictions placed on those lots. Pro formas were also completed for CG-1 and IL lots which meet the size requirements in the Development Code. These pro formas showed that it is financially feasible to develop lots in the CG-1 and IL zones which meet size requirements per the Development Code. The pro formas, shown as Tables A-12 through A-15, present economic analyses of the costs and revenues to develop CG-1 and IL lots which do not meet size requirements. The pro formas use the median lot sizes identified in Table A-11 as the basis for the analysis. Lot coverage factors, maximum heights, and parking requirements were indentified in the Development Code and used to determine the building size which could be developed on these lots.33 The IL zone allows for a maximum lot coverage of 75% and the CG-1 zone allows 50%. Parking requirements significantly constrain development on lots which do not meet size requirements. The CG-1 zone requires 1 space for every 250 square feet of building space. The parking ratios for buildings in the IL zone vary with building size. The pro forma for the IL zoned lot which does not meet size requirements uses a parking ration of 1 space for every 500 square feet of building space. The pro forma *or the IL zoned lot which meets size requirements uses a parking ratio of 1 space for every 1,000 square feet of building space. Due to the small size of the lots which do not meet size requirements, subterranean parking is infeasible and surface parking must be utilized. Subterranean parking is infeasible on these smaller lots because the size of the lots cannot accommodate adequate ingress and egress, as well as parking stalls. Merged Area A is also located within a liquefaction zone which would make subterranean "Development Code Chapter 19.08 details CG-1 standards and Chapter 19.08 details IL standards. Q RSG 66 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council parking more difficult and costly, if not infeasible. See the URM portion of this report for more information regarding liquefaction zones. The pro forms employ the income approach to valuation. Project feasibility is determined by subtracting the total development costs from the project value. The development feasibility gap of the project, as well as the developer's equity contribution, have been analyzed to assess the feasibility of the project. Marshall and Swift Valuations were used to estimate building shell costs for both the industrial and commercial uses. On- site, off-site, financing and other indirect costs were generated from current market rates or RSG's database for like expenses. Operating income and expense assumptions were based on review of local area real estate professionals and RSG's experience with projects of the proposed scope and scale. Based on information obtained through CBRE, Colliers International, and LoopNet average lease rates for comparable properties in the City were utilized; the assumed rental rate for IL zones was $1.15 psf/month and for CG-1 zones was$2.00 psf/month. IL Zoned Parcels of Inadequate Size The pro forma presented in Table A-12 represents the development of a light industrial/flex building located in an IL zone on a 6,912 square foot lot. This type of building would typically house office, research/development, or light manufacturing uses. The lot size requirement set forth in the Development Code for the IL zone is 20,000 square feet. This project is economically infeasible because development costs exceed the value of the project by $60,921, creating a feasibility gap in that amount. The pro forma presented in Table A-13 represents the development of a light industrial/flex building located in an IL zone on a 20,000 square foot lot, which is the lot size requirement set forth in the Development Code. The analysis concludes that this project would be feasible and would produce an additional profit of $10,843 for the developer,which is in addition to the typical developer fees already included in the pro forma. The pro formas shown in Tables A-12 and A-13 indicate that it is not economically feasible to develop IL zoned lots which do not meet size requirements. However, the same pro formas show that it is economically feasible to develop IL zoned lots which meet size requirements. In addition to being economically infeasible the pro formas presented in Tables A-12 and A-13 indicate that a developer would need to contribute a higher percentage of their own equity to a project on a IL zoned lot which does not meet size requirements. A developer would need to contribute equity equal to 25.3% of project costs for the development of an IL zoned lot which does not meet size requirements. Comparatively, a developer would only need to contribute equity equal to 15.1% of project costs for the development of an IL zoned lot which does meet size requirements. Developers will typically try to invest as little of their own equity into a project as possible, which makes the development of industrial lots which do not meet size requirements less likely. In order for the development of IL zoned lots which do not meet size requirements to become economically feasible lot consolidation would need to occur to increase the size of those lots. O PSG 67 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Substandard Industrial Lot-Pro Forma Table M1 San Bernardino Merged Area A Site Characteristics Lot Square Feet 6,812 Lot Coverage Maximum 0.75 Spaces(Q 300 SF par space) 8 Building SF per Space 500 Industrial Building(S.F.) 3.7550 Project Cost SF1UNITS/SP PER SF/SP TOTAL Acquisition Costs 6,912 $7.50 $51,840 Total Acquisition Costa $51,840 CONSTRUCTION: often /infrastructure/Utilities 6,912 $9.00 $62,208 Site Costs(including landscaping) 6,912 $2.00 $13,824 Parking(Surface;per space) 8 $1.350 $10,800 Industrial Building Cost(Shell) 3.750 $42.78 $160,425 FFE and Tenant Improvements 3,750 $5.00 $18,750 Contractor Fee&General Conditions 14.0% $9.23 $34,616 Contingency 10.0% $8.02 $30,062 Total Construction $86.18 $330,685 Total Land&Construction $382,525 %of $per Bldg. SOFT COSTS: construction Sq.Ft. Total ME/Consultant Fees 6.0% $196 $14,835 Pow Permits&Fees 5.0% $5.10 $19,126 Taxes.Insurance,Legal&Accounting 3.0% $2.65 $9,921 Marketing 5.0% $4.41 $16,534 Developer Fee(G&A/Profit) 12.0% $10.58 $39,682 - Contingency 10.0% $2.67 $10,010 Total Soft Coats 33.3% $29.36 $110,109 FINANCING: Construction Interest 6.5% $5.51 $20,656 Financing Fees 3.0% $3.10 $11,618 Total Financing $8.61 $32.275 Total Project Cost $139.98 $524,909 Industrial Rental Income Gross Annual Rental Income 3,750 91 $13.80 $51,750 (Less):vacancy&Collection 15.0% of Gross Income ($7,763) Gross Effective Income $43.968 Operating Expenses 7.5% of Gross Effective Income ($3,299) Property Management 5.0% of Gross Effective Income ($2,199) Reserves 3.0% of Gross Effective Income ($1,320) Total Expenses ($8,816) Net Operating Income $37,169 Cap Rate 8.00% Total Project Revenue $464,618 (Less)Development Costs (524,909) ProBd(Feasibilily Gap) ($80,291) Source:See Appendix 3-Pro Forma Sources and Assumptions O RSG 68 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Adequate Industrial Lot-Pro Forma Table A-13 • San Bernardino Merged Area A Site Characteristics Lot Square Fact 20,000 Lot Coverage Maximum 0.75 Spaces(Q 300 SF per space) 15 Building SF per Space 1,01)) Industrial Building(S.F.) 15,000 Project Cost SF/UNITS/SP PER SF/SP TOTAL Acquisition Costs 20,000 $7.50 $150,000 Tool Acquisition Costs $150,000 CONSTRUCTION: Ofhita/IMrasbuclure/Utilitles 20,000 $9.00 $180,000 Site Costs(including landscaping) 20,000 $2.00 $40.000 Parking(surface;per space) 15 $1,350 $20.250 Industrial Building Costs(Shell) 15,000 $42.78 $641,700 FFE and Tenant Improvements 15,000 $5.00 $75,000 Connector Fee&General Conditions 14.0% $8.23 5123,473 Contingency 10.0% $7.20 $108,042 TOO Construction $79.23 $1,188,465 Total Land&Acquisition $1,338,465 %of $per Bldg. SOFT COSTS: construction Sq.Ft. Total A&E/Consultant Fees 6.0% $3.53 $52,917 Public Permits and Fees 5.0% $4.46 $66,923 Taxes.Insurance,Legal&Accounting 10% $2.38 $35,654 Marketing 5.0% $3.96 $59,423 Developer Fee(G&A/Profit) 12.0% $9.51 $142,616 Contingency 10.0% $2.38 $35,753 Total Soft Costs 33.1% $26.22 $393,287 FINANCING: Construct.Interest 6.5% $4.82 $72,277 Financing Fees 3.0% $2.91 $43,599 TOO Financing $7.73 $115,877 Total Project Cost $123.16 $1,847,626 Industrial Rental Income Gross Annual Rental Income 15,000 s.f. $13.80 $207,000 (Less):Vacancy&Collection 15.0% of Gross Income ($31,050) Gross Effective Income $175,950 Operating Expenses 73% of Gross Effective Income ($13,196) Property Management 5.0% of Gross Effective Income ($8.798) Reserves 3.0% of Gross Effective Income ($5,279) Total Expenses ($27,272) Net Operating Income $148,678 Cap Rate 8.00% Total Project Revenue $1,868,472 (Less)Development Costs ($1,847,628) Proftt/(Feasibility Gap) $10,843 Soome:See Appendix 3-Pro Forma Sources and Assumptions l O RSG ss SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council CG-f Zoned Lots of Inadequate Size The pro forma in Table A-14 represents the development of a general retail building on a lot which does not meet size requirements that would be permitted within the CG-1 zone. The median size of lots in the CG-1 zone which do not meet size requirements is 6,281 square feet; the Development Code states that lots in this zone should be at least 10,000 square feet. This development is infeasible because development costs exceed the value of the project by$27,222; therefore, this project is not economically viable. The pro forma presented in Table A-15 represents the development of a general retail building located on a 10,000 square foot CG-1 zoned lot, which is the minimum standard set forth in the Development Code. The analysis concludes that the development would be feasible and would produce an additional profit of$23,711 for the developer,which is in addition to the typical developer fees already included in the pro forma. The pro forma in Table A-14 indicates that, in addition to the economic infeasibility of development on CG-1 zoned lots that do not meet size requirements, developers would be required to contribute a higher percentage of their own equity to the project. A developer would need to contribute equity equal to 19.7% of project costs for the development of a CG-1 zoned lot which does not meet size requirements. Comparatively, a developer would only need to contribute equity equal to 13.7% of project costs for the development of a CG-1 zoned lot which does meet size requirements. Developers will typically try to invest as little of their own equity into a project as possible, which makes the redevelopment of commercial lots that do not meet size requirements less likely. In order for the development of CG-1 lots that do not meet size requirements to become economically feasible, lot consolidation would need to occur to increase the size of those lots. O RSG 70 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Substandard Commercial Lot-Pro Forma Table A-14 San Bernardino Merged Area A She Characteristics Lot Square Feet 8.281 Lot Coverage Maximum 0.50 Spaces(@ 300 SF per space) 10 Building SF per Space 250 Commercial Building(S.F.) 2,500 PROJECT COST SF/Unit SF/P 1=1 Acquisition Costs 6,281 $10.00 $62,810 Total Acquisition Costs $62,810 Construction: Offsite/Infrastructure/Utilites 6,281 $9.00 $56,529 Site Costs(including landscaping) 6,281 $2.00 $12,562 Parking(Surface;per space) 10 $1,350 $13,500 Commercial Building Cost(Shell) 2,500 $70.09 $175,225 FFE and Tenant Improvements 2,500 $10.00 $25,000 Contractor Fee&General Conditions 14.0% $14.44 $36,094 Contingency 10.0% $12.76 $31,891 Total Construction $140.32 $350,801 Total Land&Construction $413,611 %of $per Bldg. SOFT COSTS: construction So.Ft. - i=l A&E/Consultant Fees 6.0% $6.19 $15,469 Public Permits&Fees 5.0% $8.27 $20,681 Taxes,Insurance,Legal&Accounting 3.0% $4.21 $10,524 Marketing 5.0% $7.02 $17,540 Developer Fee(G&A/Profit) 12.0% $16.84 $42,096 Contingency 10.0% $4.25 $10,631 Total Soft Costs 33.3% $46.78 $116,941 FINANCING: Construction Interest 6.5% $8.93 $22,335 Financing Fees 3.0% $5.21 $13,022 Total Financing $14.14 $35,357 Total Project Cost $226.36 $565,909 PROJECTREVENUE Gross Annual Rental Income 2,500 s.f. $24.00 $60,000 (Less):Vacancy&Collection 15.0%of Gross Income $9,000 Gross Effective Income $51,000 Operating Expenses 7.5%of Gross Effective Income ($3,825 Property Management 5.0%of Gross Effective Income 1$2,550 Reserves 3.0%of Gross Effective Income $1,530 Total Expenses ($7,905 Net Operating Income $43,095 Cap Rate 8.00 Total Project Revenue $538,688 (Less)Development Costs ($565,909 ProfiU Feasibil' Ga 527,222 Source:See A ndix 3-Pro Forma Sources and Assumptions O PSG SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Adequate Commercial Lot-Pro Forma Table A-15 San Bernardino Merged Area A Site Characteristics Lot Square Feet 10,000 Lot Coverage Maximum 0.50 Spaces 1@ 300 SF per space) M Building SF per Space 260 Commercial Building(S.F.) 5,000 Protect Costs SF/UNITS/SP PERSF/SP TOTAL ACQUISITION COSTS 10,000 $10.00 $100,000 Total Acquisition Costs $100,000 CONSTRUCTION: OOske/Infrestructure/Utilities 10,000 $9.00 $90,000 Site Costs(including landscaping) 10,000 52.00 S20,000 Parking(..dace;per space) 20 $1,350 $27,000 Commercial Building Cost(Shell) 5,000 $70.09 $350,450 FIFE and Tenant Improvements 5,000 $10.DD $50,000 Contractor Fee&General Conditions 14.0% $13.65 $68,243 Contingency 10.0% $12.11 $60,569 Total Construc8on $133.25 $666,262 Total Land&Construction $766,262 %of $per Bldg. SOFT COSTS: construction S0.Ft. Total ME/Consultant Fees 6.0% $5.85 $29,247 Public Permits&Fees 5.0% $7.66 $38,313 Taxes,Insurance,Legal&Accounting 3.0% $4.00 $19,986 Marketing 5.0% $6.66 $33,313 Developer Fee(G&A/Profit) 12.0% $15.99 $79,951 Contingency 10.0% $4.02 $20,081 Total Soft Costs 33.2% $ed.18 $220,894 FINANCING: Construction Interest 6.5% $8.28 $41,378 Financing Fees 3.0% $5.03 $25,130 Total Financing $13.30 $66,508 Total Project Costs $210.73 $1,053,664 Commercial Rental Income Gross Annual Rental Income 5,000 s.f. $24.00 $120,000 (Less):Vacancy&Collection 15.0% of Gross Income ($18,000) Gross Effective Income $102,000 Operating Expenses 7.5% of Gross Effective Income ($7,650) Property Management 5.0% of Gross Effective Income ($5,100) Reserves 3.0% of Gross Effective Income ($3,080) Total Expenses ($15,810) Net Operating Income $86,180 Cap Rate 8.00% Total Project Revenue $1,077,375 (Less)Development Costs ($1,053,664) Profi6(Feasibility Gap) $23,711 Colt Source:See Appendix 3-Pro Forme Sources and Assumptions ORSG 72 SAN BERNARDINO MERGED AREA A MERGERS,AMENDMENTS Report to the Mayor and Common Council As presented in the previous pro formas development on lots which do not meet size requirements is not economically feasible and thus hinders development. Parking is a major constraint to the development of these lots. It is difficult to accommodate parking requirements while maintaining the development of a building with sufficient square footage to support the development costs. On larger lots that meet size requirements, the ability to build at a greater density while still achieving required parking reduces the project's cost per square foot by spreading certain project-related costs over the entirety of a larger site. This is specifically seen in Tables A-12 and A-13 which show the financial difference between the development of an IL zoned industrial lot which does not meet size requirements and one that does. For the development of the lot which does not meet size requirements, a financial feasibility gap of$60,291 exists and a parking ratio of 1 space per 500 square feet of building space must be used, due to the size of the building. However, for the lot which does meet lot size requirements, a parking ratio of 1 space per 1,000 square feet of building space may be used. The reduced parking ratio allows for the construction of a larger building, which in turn increases revenues. In total, the industrial lot which meets size requirements does not have a financial feasibility gap and returns an additional $10,843 in profit to the developer, which is an addition to the typical developer fees and returns already incorporated into the pro forma. As shown in this example the additional square footage included in a lot which meets size requirements makes the development of the lot financially feasible and attractive to a developer. Despite the economic feasibility of the projects shown in Tables A-13 and A-15, it is unlikely that either of these projects would be constructed in the near-tens due to the depressed real estate market in the Inland Empire. Constricted lending practices and high vacancy levels would deter or prevent most developers from constructing a similar project. However, it is likely that these projects would be constructed once the real estate market improves, and more typical lending practices, lease rates, and vacancy rates are seen. Once this occurs, developers would be more likely to complete projects on commercial and industrial lots which meet size requirements because, as seen in Tables A-12 through A-15, they are more economically feasible and require less of the developer's own equity than projects developed on CG-1 and IL zoned lots which do not meet size requirements. Residential Lots of Inadequate Size Residential lots which do not meet lot size requirements cannot be developed to their highest and best use as prescribed in the Development Code and may only be developed at a lower density. The residential lots shown in Table A-10 all fall into the RM, RMH, or RS zones. These zoning categories are designed to accommodate 12-31 units per acre depending on the category. If a lot does not meet the size requirement, it may be developed at a lower density of 8 units per acre. These lots cannot be developed to their highest and best use (maximum density) as prescribed in the Development Code, which in turn limits their capacity and financial viability. The financial viability of the lot is limited if it cannot be developed to its maximum density because the potential income stream from the property will be reduced due to the lesser amount of units. Blighting Conditions on Lots of Inadequate Size During the Field Survey, RSG observed numerous blighting conditions on lots which do not meet size requirements, many of which directly relate to the small size of the lot. Conditions included commercial vacancies, lack of or inadequate parking, excessive outdoor storage, and dilapidation and deterioration due to lack of ongoing maintenance and owner investment. As shown previously, the redevelopment and/or development of these lots are economically infeasible, which leaves little incentive for the current property owners to repair existing blighting conditions and prevent the continued decay of the properties. Without Agency assistance, many of these properties may continue to decay, exhibit blighting conditions, depreciate the property values of neighboring properties, and potentially pose a health and safety threat to the community. Additionally, RSG observed that many of the lots not meeting size requirements were vacant and/or undeveloped, which may indicate that there is little or no developer interest in these properties. The following images are examples of the conditions observed by RSG. O RSG 73 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Photo A-14: This commercial lot is located in the CCS Project Area and does not meet lot size requirements. The lot is zoned for CO commercial use and is 5,550 square feet, a little more than 50% of the 10,000 square foot requirement. As shown in the image above, there is limited parking and vehicular access on the lot. The lot and building are currently used as an automotive garage. Due to its use as an automotive garage, vehicular storage and movement occur at a greater frequency than lots with non-automotive uses. The frequency of vechicular movement and storage in a confined space could create a heath and safety threat to pedestrians and other motorists and could block access in the event of an emergency. Additionally, the building occupies more than 60% of the lot area, which is over the 50% maximum, further decreasing the amount of space available for parking and vehicular access. ®RSG 74 i SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 0 Photo A-15: This commercial lot is located in the M/CC Project Area and does not meet lot size requirements. The lot is zoned for CG-1 commercial use and is 6,000 square feet, 40% less than the 10,000 square foot requirement. The building occupies 4,304 square feet, more than 71% of the lot, well over the 50% coverage maximum. The building is currently vacant and was formally used as an automotive garage. Due to the small lot size, potential tenants may opt to rent a different building, which may force the owner to lower the asking rent. It will be shown in a following section that low lease rates and high vacancy rates already exist in Merged Area A. Buildings on lots which do not meet size requirements, such as the one show in the image above, have limited uses and are less attractive to renters, which can lead to lower lease rates and higher vacancies,exacerbating blighting conditions in Merged Area A. O RSG _ .. . . . ...... 75 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Rcport to the Mayor and Common Council r ` rrt 4 . �e r mj-- r � Photo A-16: This vacant lot is located in the CCS Project Area and does not meet lot size requirements. The lot is zoned for CCS-1 commercial use and is 6,345 square feet, which is substantially smaller than the 10,000 square foot requirement. As shown in the previous section titled Financial Viability of Substandard Lots, it is economically infeasible to develop commercial lots which do not meet size requirements, which makes it likely that this lot will continue to sit vacant. It is unlikely that development would occur unless the owner was to consolidate surrounding lots; the current owner does not own any of the adjacent lots. As seen in the image above, the lot is currently subject to the illegal dumping of trash. The trash dumped on the property poses a potential threat to the health and safety of anyone who may enter the property or nearby residents, because it attracts vermin, can harbor bacteria and parasites as it degrades, and poses a fire threat. It is unlikely that the property owner will have any incentive to keep the property clean, since it is vacant and is financially infeasible to develop. O RSG 76 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council jy+q 1 Photo A-17: This industrial lot is located in the CCS Project Area and does not meet lot size requirements. The lot is zoned for IL industrial use and is 19,420 square feet, less than the 20,000 square foot requirement. On the Field Survey, a significant lack of parking was observed, as cars were parked two-deep and mixed with boats and trailers. As seen in the image above, a boat is blocking the cars parked on the left side of the image (there is a wall behind the cars), which would not be able to get out unless the boat was moved. Due to the number of vehicles parked on the lot, access is limited. The lack of access may create a health and safety threat to pedestrians and other motorists, as they maneuver in and out of the crowded lot and may have obstructed sight lines. The lot and building house a repossession business, as seen in the image it appears that the designated parking areas on the lot are being used to house repossesed vehicles, boats, trailers, and other items. The nature of the business is to repossess and then store vehicles, but due to the limited size of the lot, parking areas are being used as part of the business and not for parking. RSG _ 77 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council I r Photo A-16: This industrial lot is located in the CCS Project Area and does not meet lot size requirements. The lot is zoned for IL industrial use and is 12,167 square feet, which is less than the 20,000 square foot requirement. As previously shown it is financially infeasible to development an industrial lot that does not meet size requirements. For this reason it is likely the property will remain vacant and a visual nuisance to the community. Additionally, the garbage and debris on the lot poses a potential threat to the health and safety to any one who may enter the property or nearby residents, because it attracts vermin, can harbor bacteria and parasites as it degrades, and poses a fire threat. It is unlikely that the property owner will have any incentive to actively keep the property clean, since it is vacant and financially infeasible to develop without combining adjacent lots. The lot's owner does not own any of the adjacent lots that could be used to consolidate into a larger lot which meets size requirements. ORSG 78 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council i Photo A-19: This commercial lot is located in the GCS Project Area and does not meet minimum lot size standards. The lot is zoned for CCS-1 commercial use and is 6,493 square feet, less than the 10,000 square foot minimum.As seen in the image above, the parking and access area is limited and is being utilized for the storage of trailers, trucks, and inoperable vehicles, which further constrains the ability of employees and patrons to park and access the building. The lack of parking and access creates a potential health and safety threat to pedestrians and other motorists, because vehicles may need to back out of the parking lot or block sidewalks. Additionally, the inadequate size of the lot has limited its capacity and may limit the owners ability to obtain rent which is equal to that of an adequately sized lot with sufficient parking and access. O PSG Q 79 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council —i Is Photo A•20: This residential lot is located in the CCN Project Area and does not meet minimum lot size standards. The lot is zoned for RM multi-family residential use and is 1,800 square feet, 70% less than the 6,200 square foot minimum. Due to the inadequate size of the lot development is limited to one unit. In order for the lot to be developed at its intended capacity, the owner would need to consolidate neighboring lots; currently the owner does not own any of the adjacent lots. As seen in the image above, the building currently on the lot is suffering from extensive deterioration and dilapidation. The Development Code requires new homes be at least 1,000 square feet and cover no more than 50% of the lot, thus substantially or potentially limiting the development of even one new home on the lot. These limitations suggest that the building currently on the property will remain as a vacant and dilapidated structure, potentially reducing neighboring property values and posing a potential threat to the health and safety of those in its vicinity. o. O RSG 80 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council rE Photo A-21: This industrial lot is located in the SUP Merged Area A and does not meet minimum lot size standards. The lot is zoned for IH industrial use and is 11,021 square feet,which is nearly 75% less than the minimum of 40,000 square feet. As seen in the image above several cars are parked in areas without parking stalls, indicating a lack of necessary parking facilities. The lack of parking facilities is likely caused by the inadequate size of the lot and can potentially pose a threat to the safety of pedestrians and motorists, limiting access in the event of a fire or medical emergency by blocking the flow of traffic. Also, as photographed above, a truck is loading items in the public right-of-way and is blocking the flow of traffic creating a additioanl safety hazard. - Lots of Inadequate Size in Multiple Ownership Section 33031(a)(4) defines a blighting condition as the existence of subdivided lots that are in multiple ownership, the physical development of which has been impaired by their irregular shapes and inadequate sizes, given the present general plan and zoning standards and present market conditions. The previous section analyzed lots that do not meet size requirements based on the Development Code. This section expands on that condition to analyze the number of lots which do not meet size requirements that are in multiple ownership. Table A-16 summarizes the number of subdivided lots in multiple ownership which do not meet size requirements within Merged Area A. Multiple ownership was determined by isolating lots which do not meet size requirements and that do not have an adjacent lot with the same owner. Subdivided Lots of Inadequate Size in Multiple Ownership Table A-16 San Bernardino Merged Area A CCS CCE MICC CCN South Valk SEIP Tri-City Total Commercial 73 12 5 1 6 8 2 107 Industrial 32 0 5 0 5 16 0 58 Residential 0 13 0 52 1 0 0 66 105 25 10 53 12 24 2 231 Source:First American MelroScan Information Service 8 San Bernardino City GIS 9RSG SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council Out of the total 497 lots that do not meet lot size requirements in Merged Area A, 231 (46%) are in multiple ownership. Of the 269 commercial lots which do not meet size requirements in Merged Area A, 107 (40%) are in multiple ownership. Similarly, 58 (44%) of the 131 industrial lots which do not meet size requirements, and 66(68%)of the 97 residential lots which do not meet size requirements are in multiple ownership. The previous section presented pro forma analyses showing that it is not financially feasible to develop commercial and industrial lots that do not meet size requirements. The physical development of lots that do not meet size requirements is impaired because it is highly unlikely that a developer would pursue a project on one of these lots because it would not produce a return on investment, especially when they could instead invest in a less constrained site. Therefore, lots would need to be consolidated in order to provide a site with enough square footage to develop a building which is economically viable and would produce a return on a developer's investment. Lots that are in multiple ownership are difficult for the private sector to assemble and create a site large enough to support economically feasible development, due to the increased amount of time and coordination to purchase multiple lots instead of a single lot. Redevelopment provides a tool to assemble properties so that they can be redeveloped on lots that meet size requirements, making projects economically feasible. Exhibits A-16 and A-17 present the location of lots that do not meet size requirements that are in multiple ownership. O RSG 82 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council LOTS NOT MEETING SIZE REQUIREMENTS IN MULTIPLE OWNERSHIP- NORTHERN PORTION EXHIBITA-16 SAN BERNARDINO MERGED AREA A ��3 I Central City North ii s 51 I _ t _� Vii" _4 ■ 7 r / 5 �LQNP 1€ j .wu5�LM4i + p 1 va Meadineib oWCentral City , ., si I City East LILL— _.-. 1 cmf. s I. zvF ss • It i, � f�— •µ iii `ilk LILL ....__ Central City South T t gl Legend of Lots Not Meeting Size - Requirements In A, e; Multiple Ownership Central City North � \ Central City South _ O Southeast Industrial Park Central adimOnE astntral City % Y �� Y o••'�k='n""" 5 ! N City . J F "r— Sources:ESRI, City of San Semartlino GIS Department, 0 0.125 025 0.5 075 t and MelroScan Miles O RSG i .-83 W = ' I y G a E aA u c W 1\ G O a s W u 5 aa:w S c � u K � n aawma"u n�wa•� � e G 0 w e € m cc w IL O r z •wce�V � a', IL �F Orep` a (7 J. W i a, � o �., � a z—;a O Q a@ vN/ LL O SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council Economic Burden on the Community from Inadequate Sewer Utilities According to CRL Section 33030(b)(1), an area can be considered blighted if it is predominantly urbanized and its sewer utilities are substantially inadequate to such an extent that it constitutes a serious economic burden on the community that cannot reasonably be expected to be reversed or alleviated by private enterprise or government action, or both. The northeast portion of the Tri-City Project Area is one such area that is not currently served by any sewer utilities. At$500-$2,000 per linear foot, it would cost between $500,000 and $2,000,000 to bring a main sewer line in proximity to the area. To then extend the line to serve the 83 acre area for any type of development would greatly increase this sum. Without financial assistance, the significant costs associated with installing the necessary infrastructure may hinder development of this area. Redevelopment funds can be used to alleviate the lack of sewer utilities and therefore promote development in this portion of Merged Area A. To illustrate the financial impact of the cost to improve missing or deficient infrastructure to develop a site, the following pro forma, detailed in Table A-17, was prepared for a one story commercial structure located on a 435,000 square foot lot located at the comer of 6'" Street and Del Rosa Drive, in the northeast portion of the Tri-City Project Area. The pro forma was prepared using consistent assumptions as those of Table A-15 for CG-1 zoning in the previous section, but is adjusted to reflect a larger lot size, larger building size, and more parking. The cost to bring the main sewer line to the property is estimated to cost $4.5 million (4,500 feet at $1,000 per linear foot). O RSG 85 SAN BERNARDINO MERGED AREA A MERGER 8,AMENDMENTS Report to the Mayor and Common Council Commercial Pro Forma With Implementation of Sewer Utilities Table A-17 San Bernardino Merged Area A Site Characteristics Lot Square Feet 435,600 Lot Coverage Maximum 0.50 Number of Stories 1.0 Parking Area 108,900 Spaces(@ 300 SF per space) 363.0 Commercial Building(S.F.) 217,800 Project Cos l SF/ NIITSIS PER SFISP TOTAL Acquisition Costs 435,600 $10.00 $4,356,000 Total Acquisition Costs $4,356,000 Construction: Offsite/Infrastrudure/Utilities 435,600 $19.33 $8,420.148 Site Costs(including landscaping) 435,600 $2.00 $871,200 Parking(Surface;per space) 363 $1,381.68 $501,550 Commercial Building Cost(Shell) 217,800 $75.23 $16,385,094 FFE and Tenant Improvements 217,800 $10.00 $2,178,000 Contractor Fee&General Conditions 14.0% $16.83 $3,664,919 Contingency 10.0% $14.70 $3,202,091 Total Construction $161.72 $35223,002 Total Land&Construction $39,579,002 %of $per Bldg. SOFT COSTS: construction So Ft I2W A&E/Consultant Fees 6.0% $7.21 $1,570,680 Public Permits&Fees 5.0% $9.09 $1,978.950 Taxes,Insurance,Legal&Amounting 3.0% $4.85 $1,056,690 Marketing 5.0% $8.09 $1,761,150 Developer Fee(G&A/Profit) 12.0% $19.41 $4,226,760 Contingency 10.0% $4.86 $1059423 Total Soft Costs 33.1% $53.51 $11,653,653 FINANCING: Construction Interest 6.5% $9.81 $2,137,266 Financing Fees 3.0% $5.45 $1,187,677 Total Financing $15.27 $3,324,944 Total Project Cost $250A9 $54,557,598 Project Revenue Gross Annual Rental Income 217,800 s.f. $24.00 $5,227,200 (Less):Vacamcv&Collection 15.0%of Gross Income 784 080 Gross Effective Income $4,443,120 Operating Expenses 7.5%of Gross Effective Income (333,234 Property Management 5.0%of Gross Effective Income (222,156 Reserves 3.0%of Gross Effective Income (133,294 Total Expenses (688,684 Net Operating Income $3,754,436 Cap Rate 8.00° Total Project Revenue $46,930,455 (Less)Development Costs (54,557,598 Profifl Feasibilit Ga ($7,627143 Source:See A endix 3-Pro Forma Sources and Assumptions Q RSG 86 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council As illustrated in Table A-17, the feasibility gap of the project is estimated to be$7.6 million, much of which is due to the additional costs related to sewer infrastructure improvements. It is unlikely that a developer would want to take on a project with such a large deficit without a financial subsidy or Agency assistance in completing the infrastructure upgrades. O PSG __. 87 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council ECONOMIC BLIGHT IN MERGED AREA A The previous discussion outlined the physical conditions of blight remaining within Merged Area A. CRL Section 33031(b)describes the economic conditions that cause blight. In order to show that Merged Area A remains blighted, economic conditions of blight described in CRL Section 33031(b) were analyzed. These economic conditions per the CRL are assessed in terms of depreciated property values, low lease rates, a lack of commercial facilities, residential overcrowding, hazardous waste sites, an excess of bars and other adult-oriented businesses, and high crime rates. In order to assess economic blight in Merged Area A, data from brokers, market studies, DataQuick, Metroscan, GIS, EnviroStor, Geotracker, CERCLIS, the Police Department, and other resources were collected and analyzed to determine what conditions may be adversely affecting the health and safety of individuals in Merged Area A, as well as the economic viability of Merged Area A and the community. The following discussion substantiates the seriousness of several conditions of economic blight within Merged Area A. Exhibits A-18 and A-19 illustrate the location of economic blight throughout Merged Area A. O RSG 88 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council ECONOMIC BLIGHT-NORTHERN PORTION EXHIBITA-18 SAN BERNARDINO MERGED AREA A a Miei' CaMral City Nonh n j /MAX _ ,•., / —1 Meadowbrook/Central City i '`Central City�- y � ! ,,,.1 c,.,l 6161 �� // /-' •• '., CeMrel City South Legend ® Economic Blight ..„1.,,,, Hazardous Waste - Business Vacancies Q Central City North i Central City East QMeadowbrook/Central City C Central City South Y N QSoutheast Industrial so:nu.oyors.e ee..amro crscey.rtm.m.M<i�:ray oomoi ox o0 oa O RSG _�. -- --- — ---- — as N E m n Je �. � Cx g r c W Y rvenr G nnvc uw H Go \ \ °" a•3xm b«.xm S „xwx. c Wd ` \ reoxrx .aauraauu nrwaoxraae u"r C Z � x \ • 3 s \ 4 � B e .a vovoaoxr.o 6 N6 SILL \ a 6 N _ m Z x,00x� m \ 0 0 a Z rc W Q C .arx3iax �9 O 1O O N W � a" ry 5 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Depreciated or Stagnant Property Values V The CRL identifies depreciated or stagnant property values as conditions which cause economic blight. As properties are reassessed upon sale, property values depreciate as sales prices decline. Decreased assessed valuations negatively impact the amount of tax increment revenue allocated to the Agency, which impacts the dollars which can be reinvested back into Merged Area A. Therefore, as property values depreciate or stagnate, the economic vitality of the community declines. Declines in property values also compound other factors that disincentivize investment in and maintenance of properties by owners. The land use makeup of Merged Area A is predominantly commercial and industrial uses, although a significant percentage of land is vacant - -----.. and undeveloped. As shown in the Merged Area A adjacent chart, the primary developed Isc nanoes Land Use Breqkdo� land uses in Merged Area A are office (13%), industrial (19%), and retail (22%). The average building price per square .'"P foot of these three major land uses in i Merged Area A have significantly declined as a result of blighting conditions in the Residential Project Areas and the economic a% downturn, particularly when compared to the remainder of the City. vacant 19% The following discussion examines and compares property sales values for the o% three primary land uses, as well as residential property, in Merged Area A compared to the City(citywide)and the cities of Riverside and Ontario, and the market area to which they belong (East Inland Empire)over a five year period (2005 through 2009). Commercial and industrial property sales values were derived using Metroscan Inc. data to determine building square footage and sales prices of properties sold between 2005 and 2009. The average price per square foot of building area ("psf/ba")was compared to determine if Merged Area A property values have depreciated or remained stagnant over the five year period. Residential property values are based on the annual median sales price of homes sold between 2005 and 2009. Median sales price values were provided by Dataquick (2009)for Merged Area A and comparable market areas. Commercial Property Values As described above, retail uses, industrial uses, and office uses are the most prevalent commercial uses and account for over 50% of the total land uses in Merged Area A. The following analysis looks at the annual psf/ba by land use type, between 2005 and 2009. Commercial Retail Values Merged Area A retail properties have depreciated in value between 2005 and 2009. The average 2009 price per square fool sales value for Merged Area A decreased by 28%from 2005 values, as shown in Table A-18. The remainder of the City also saw a dramatic decrease (24%) in sales prices during the same period. Properties sold for under a quarter of the price they sold for five years earlier. Consistent with other parts of Southern California, sales prices in both Merged Area A and the City experienced a significant increase in value from 2005 to 2007, but then plummeted thereafter, also consistent with California's real estate trends. Although trends in both Merged Area A and the City are similar, Merged Area A sales prices are on average $27.44 psf/ba less than the City's average sale prices, indicating that Merged Area A has been more severely impacted by reduced sales prices. Many economists and real estate experts, including authors Blair Newman and Dave Mason, warn that property values will not see appreciation for the next five years.30 Further, 30 Blair Newman,Dave Mason,"Economists disagree on what's ahead for Southern California,"So Cal Real Estate News, November 4, 2009. O RSG s1 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council brokers surveyed by RSG expect sales values to bottom out or stabilize near 2005 values in the coming fiscal 35 years. 2005.2009 Commercial Retail Sales Analysis Table A-18 San Bernardino Merged Area A 2005 2006 2007 2008 2009 Five-Year %A $/Bldg.SF %A $/Bldg.SF %A $/Bldg.SF %A $/Bldg.SF %is $/Bldg.SF Average 05-09 Merged Area A $ 115.931 48% 1 $ 171.51 2% '$ 175.47 j -52% j $ 84.44 -2% i $ 83.13 $ 726.09 -28% City' $ 136.83 i 43% I $ 195.81 i 22a/ 1$ 239.44 7 -16% I $ 200.71 1 -_4Z 1 $ 104.64 $ 175.49 -24% Total Difference E 20.90 I $ 24.31 $ 63.96 $ 116.27 I $ 21.51 $ 49.39 1 Represents Me average sale price per building square footfor all properties add vMhin Merged Area A from 2005 to 2009. 2 Represents the average sale price per building square toot for all properties sdtl within San Bernardino(net of project Area q from 2005 W 2009, Sov�:Metroscan,2009 Among the hardest hit by declining retail sales values in Merged Area A is the CCS Project Area, as illustrated in Table A-19. After showing tremendous gains in value between 2005 and 2007, retail values plummeted by 65% between 2007 and 2008. This decline is drastic, especially when compared to the City, which experienced only a 16% drop in value between 2007 and 2008. The four year average retail property sale price in the CCS Project Area is $85.57 psf/ba less than the City's average. Additionally, no retail properties were sold in the CCS Project Area during 2009, further indicating a declining commercial real estate market in the area. As values decline and demand for commercial property in Merged Area A diminishes, Merged Area A will continue to suffer economic blighting conditions and a lack of property investment without redevelopment intervention. 2005-2008 Commercial Retail Sales Analysis-Central City South Table A-19 San Bernardino Merged Area A 2005 2006 2007 2008 Four-Year %n $/Bldg.SF %A $/Bldg. SF %A $/Bldg.SF %A $/Bldg. SF Averages 05.08 Central City Sou6 $ 35.71 1 256% 1 $ 126.981 57% 11 $ 199.041 -65% 1 $ 68.79 $ 107.63 93% City' $ 136.831 43% i $ 195.81 i 22% 1 $ 239.44 -16% $ 200.71 $ 193.20 47% Total Difference $ (101.12), $ (68.83k I $ (40.39, $ (131.92 $ (85.57 1 Represents the average sale pine per building s0uare foot for all properties sold within Central City South from 2005 to 2008. 2009 data unavailable. 2 Represents the average sale prite per building square foot fair all properties sold within San Bernardino(net of Merged Project Area A)from 2005 to 2008. Source Metroscan,2009 Commercial Office Values As depicted in Table A-20, office uses in Merged Area A have shown a 1% decrease in per square foot sales prices from 2005 values. Aside from a peak in 2007 (a 54% increase from 2006), office property sales prices have stagnated around $85 psf/ba. Per square foot commercial-office prices in the rest of the City have fluctuated from year to year but have consistently remained higher than those of Merged Area A. The stagnation in property sale values can be attributed to low demand. As author James Kimmons writes in his article "Real Estate Supply and Demand," property values are dictated by the supply of stock in a given market and the demand for that stock. Where lower prices are determined by over-supply and under- whelming demand, higher prices are determined by under-supply and over-whelming demand. Merged Area A demonstrates this basic economic principle in that demand has not spurred an increase in price per square rte, ps"Market Update,"Marcus&Millichap,2009. 9fiJ.Kimmons,"Real Estate Supply and Demand;2009. ORSG 92 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council foot values. To the contrary, the lack of demand has kept Merged Area A sales prices stagnant and consistently lower than the rest of the City. In 2007, office sales prices peaked at $138.08 psf/ba, climbing 54% from the previous year. Of the 1.02 million square feet of office space built between 2005 to 2009, 507,834 square feet (49%) was built in 2007. Brokers surveyed have indicated that while new stocked resulted in increases in sales prices in 2007, sales prices in 2008 ($88.44 psf/ba) dropped to 2006 values ($89.93 psf/ba). Indicating over-supply, sales prices decreased dramatically in 2008(36%), decreasing further still in 2009(8%). Grubb & Ellis, a leading real estate advisory firm, reports that office values are anticipated to decline further as more commercial properties default on loans. The Inland Empire's telecommunication/information, finance, and professional sectors have suffered extraordinary job losses(13,800 between February 2008 and 2009) and are continuing to default on commercial loans. Uncertainty as to when the office market will rebound is further deterring investment and driving down value.37 2005.2009 Commercial Office Sales Analysis Table A-20 San Bernardino Merged Area A 2005 2006 2007 2008 2009 Five-Year %A $/Bldg.SF %a $/Bldg.SF %A $/Bldg.SF %A $/Bldg.SF %A $/Bldg.SF Average 05.09 Merged Area A $ 82.331 9% 1$ 89.93 54% j $ 138.08 -38% j $ 88.441 -8% $ 81.59 $ 93.66 -1% Coy $ 114.541 25% 1$ 143.231 -21% I $ 112.771 57% 1$ 176.531 -50e� 1$ 88.66 $ 127.15 -23% Total DlHerence $ (32.201 $ 53.50' $ 25.30 I $ 88.08 S 7.07 $ (33.49 1 Represeres the average sale price per building squaretoMfm all properties said within Merged Area AMMr 1005 to 2009. 2 Repremn6 the average sale puce Der building square(potter all prepares sold within San eerendino(vet PA)".2005 to2009. Sourm:mmosmn,2009 Industrial Property Values Industrial land uses comprise 19% of the total land uses in Merged Area A. As depicted in Table A-21, Merged Area A exhibited a slight increase in sale prices between 2005 and 2009 (5%), but prices have steadily decreased since 2007. Between 2007 and 2008, there was a 13%drop in property values. Between 2008 and 2009, property sale values continued to depreciate resulting in a 48% decrease in value between these years. In contrast, the City has appreciated (38%) in price over the five year period, despite a 25% decrease between 2007 and 2008. Historically, the psf/ba values of Merged Area A outpaced the rest of the City. This is no longer true. While the City's 2009 psf/ba value is only nominally higher than that of Merged Area A($.28 psf/ba), Merged Area A once possessed rates that ranged from $5 to $25 psf/ba higher than the City(2005-2008). This circumstance may be a result of reduced demand, increased competition, and/or depreciated values, but it clearly demonstrates that Merged Area A has lost its competitive advantage over the remainder of the City. 2005-20091ndustrial Sales Analysis Table A-21 San Bernardino Merged Area A 2005 2006 2007 2008 2009 Five-Year %A $/Bldg.SF %A $/Bldg.SF %A $Bldg.SF %A $Bldg.SF %A $/Bldg.SF Average 0609 Merged Area At $ 23.09 59% $ 36.68 i OB% $ 54.32 -/3% I$ 47.0]' 48% 1$ 24.32 $ 37.10 $% Cily $ 11.84 1 67% t$ 29.871 0% I$ 29.]3 I -25% $ 22.33 110% 1$ 24.60 $ 24.87 38% Total Difference $ '241 is 6.81 $ 24.59 1$ 24.7! 1$ (0.28)1 $ 12.22 1 Represents the average sale once per building Mae.foothu all properties led within Merged Area AhornM5 W 2009. 2 Represents the average sale prim per building samnefootror all amerties said within San Bernardino(net 0 Rgedt Area A)from 2005 to 2009. Solnm:Meaosmn,2009 ""Office Market Trends,"Grubb&Ellis Company, 2009. (qRSG 93 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Residential Values To evaluate residential property values the annual median home sale values were examined using 2009 information provided by Dataquick. Residential property values for Merged Area A have seen significant declines from 2005 to 2009. As shown in Table A-22, Merged Area A has suffered a 62% decline in median sales value from 2005. Median sales values in Merged Area A peaked in 2007 ($304,000), and began dramatically declining in 2008. Exhibiting declines in sales values of 31% in 2008 and 52%the following year, Merged Area A home values have suffered, especially when compared to Riverside and Ontario. While Merged Area A fared better in 2009 than the rest of the City and the East Inland Empire market area, Merged Area A did have the greatest decline in median sales value from one year to the next (52% from 2008 to 2009) than any of the other study areas. As sales prices for homes in Merged Area A decrease, the associated re-assessment of property values dampens the amount of tax increment revenue generated that can be reinvested into the community. 2005-2009 Median Home Sales Analysis Table A-22 San Bernardino Merged Area A %a 2005 %A 2006 %A 2007 %A 2008 %a 2009 2005,2009 East Inland Empire $ 137,203 -22% $ 107,242 44% $ 60.100 15% $ 69,205 14% $ 79,083 -73% Merged Area A' $ 266,000 f0•/ $ 292,500 4% $ 304,000 -31% $ 210,000 -52% $ 100,000 -62% San Bernardino' $ 262,750 20"/ $ 315,000 -2% $ 309,000 -52% $ 148,000 46% $ 80,000 .70% Riverside $ 383,500 10% $ 420,000 -2% $ 410,000 -36•/ $ 256,000 -30•/ $ 180,000 -53% Ontario $ 368,000 10•/ $ 405,000 4% $ 390,000 -35% $ 255,000 -25% $ 190,000 .48% 1 one far Merged Area A was acquired by zipcode. Zipcodes include 92408,92401,am 92410 2 San Bernardino is inclusive of Project Area A Source:Dafagwck,2009 Summary of Declining Property Values Overall, Merged Area A is suffering from declining property values, resulting in negative or stagnant assessed values. Indicative of the seventy of plummeting property values is the action taken in 2008 by the former San Bernardino County Assessor to preemptively review 381,000 residential properties to determine if their assessed values should be lowered.3a This represented the first mass lowering of property assessments since the real estate crash of the 1990's. As sales values decrease and assessed property values decline, Merged Area A will receive reduced amounts of tax increment revenues to reinvest back into blight- eliminating projects and programs in Merged Area A. As this trend continues, Merged Area A will continue to decline and it will be come more difficult to attract private investment. Impaired Property Values Due to Hazardous Waste Pursuant to CRL Section 33031(b)(2), the impairment of property values due in significant part to hazardous waste is an economic blighting condition. The CRL defines hazardous waste as any hazardous substance that is defined in Section 25281(h)of the California Health and Safety Code. Hazardous waste can result from manufacturing processes or discarded commercial products, such as cleaning fluids or pesticides. The presence of hazardous waste contamination can often be a major impediment to the redevelopment/development of properties commonly referred to as "brownfields." The US Environmental Protection Agency("EPA") defines"brownfields"as "real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Cleaning up and reinvesting in these properties protects the environment, reduces blight, and takes development pressures off green spares and working lands."39 Hazardous waste contamination can severely delay and increase the cost for the disposition and development of property due to testing, rte. �" 9B Berkman,Leslie,"Two Counties to lower property taxes on homes worth less than sale price;The Press Enterprise,May 17,2008 9B US EPA<hltpl/www.eoa.aov/brownfields>,January 8,2010. ORSG 94 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council remediation, difficulty in resolving existing or potential liability issues and difficulty in obtaining financing. As a result of the lengthy and costly process to remediate a hazardous waste site, properties which are contaminated are often left underutilized or abandoned. Redevelopment agencies can play a critical role in putting these underutilized brownfields back into productive use as assets for the community. In California, redevelopment agencies possess unique powers through the Polanco Redevelopment Act ("Polanco Act") (AB 3193, Chapter 1113, Statutes of 1990) to reduce or eliminate the legal and financial liability of environmental contamination from a prospective developer of a brownfield site. Major projects like Petco Park in Downtown San Diego would not have occurred without redevelopment assistance through the Polanco Act. In order to assess ongoing environmental contamination within Merged Area A, research was conducted using the Department of Toxic Control Substance's ("DTSC") Envirostor database, the State Water Resources Control Board's ("SWRCB") Geotracker database, and the EPA's CERCLIS database, as well as the Agency's locally-assembled inventory of impacted sites. Hazardous waste sites found within these databases have been compiled and presented in Table A-23 as well as Exhibits A-20 and A-21. Table A-23 shows a comparison of the total number of active and inactive hazardous waste sites that are located in Merged Area A, and their proportion to the total number of active and inactive hazardous waste sites in the City. As shown, Merged Area A contains 66.91% of all inactive sites in the City, and contains 49.43% of all active sites in the City. As Merged Area A comprises only 6.56% of the City's total acreage, the majority of active and inactive sites are clustered within Merged Area A and represents a significant barrier to redeveloping these sites. Hazardous Waste Sites Table A-2 San Bernardino Merged Area A %of Total Activ Haz. %of Total Inactive Haz. %of Total Location Acreage Acreage? Waste Sites' Active Sites Waste Sites' Inactive Sites Merged Area A 2,390 6.56% 129 49.43% 180 66.91 City of San Bernardino) 36,414 100.0% 261 100.0% 269 100.0% 1 Total values for City of San Bernardino includes Wrged Area A 2 Represents Project Area A as a percentage of the total acreage in the City of San Bernardino 3 Active sites include any sites currently under assessment or remediation or have uses which were deemed permitted 4 inactive sties include any sites which have been fully remedialed and whose case status is considered closed Source:City of San Bernardino,California Department of Toxk Substances Envirostor Database,California State Wafer Resounces Control Board. Geofracker database,and Environmental Protedion Agency CERCLIS database. Recognizing the prevalence of brownfields in and around Merged Area A, in 2008, the Agency utilized an EPA Communitywide Brownfields Assessment Grant to inventory, prioritize, and select brownfield sites for environmental investigation, including Phase I and Phase II Environmental Site Assessments. The study area, defined as the San Bernardino Greater Downtown Revitalization Area ("SBGDRA"), is approximately 7,608 acres in size. While not wholly contained within Merged Area A, nor wholly inclusive of Merged Area A, the SBGDRA does provide insight as to the nature of contaminated properties within the City. Over half of the SBGDRA target area could be characterized as blighted and/or underutilized and likely to be impacted by hazardous waste.4d In the Agency's grant application prepared for the SBGDRA, it was reported that over half of the non-residential properties in the target area are suspected of, or confirmed to have, varying levels of contamination from hazardous substances, which pose a risk to the public health and environment of the community. Significant brownfield sites in the SBGDRA include a manufactured gas plant, a foundry, and a pesticide storage facility. The SBGDRA sites located in Merged Area A, in addition to the hazardous waste sites compiled by RSG, are shown in Exhibits A-20 and A-21. 90 San Bernardino Redevelopment Agency,Hazardous Substances Application for EPA Communitywide Brownfelds Assessment Grant. RSG 95 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS .Report to the Mayor and Common Council Data compiled by RSG indicated that the majority of active (open and permitted) and inactive (closed) sites are clustered within the Central City Project Areas. Beyond just containing hazardous waste sites, the northern portion of Merged Area A also contains two" of the City's 11 superfund sites. The EPA defines superfund sites as being an uncontrolled or abandoned place where hazardous wastes are located. The severity of contamination on these sites is measured and either placed on a National Priorities List("NPL") or not. Those sites on the NPL are considered serious offenders which impact the health, safety and general welfare of surrounding community through the releases or threatened releases of hazardous substances. Typically cost-restrictive, the cleanup of superfund sites can take years or decades before the sites are suitable for development. To assist cleanup, redevelopment agencies have been granted authority to determine three key aspects of any cleanup for a property located within a redevelopment project area. Through the Polanco Act, the Agency can influence the sequence and schedule of remediation and redevelopment activities in Superfund sites, influence cleanup guidelines, and work with EPA to determine whether a responsible party's groposed cleanup plan is consistent with the guidelines contained in the National Contingency Plan.d2 p Although the Polanco Act entitles agencies the oversight to ensure brownfields within project areas are remediated properly, it is still a time-intensive process. For instance, the remediation of the Hanford Foundry Company site, located within the northern portion of the CCS Project Area, has been ongoing since 1987. As hazardous sites are required to be remediated prior to sale and development, the cost and length of Gme required to make a property development-ready can deter remediation and private investment. "'The two sites belong to the Southwest Metal Company and the Hanford Foundry Company. Neither site is on the National Priorities List. u"Polanco Redevelopment Act Overview,'Foley Lardner,2009. °3 The National Contingency Plan is a set of nationwide standards for the cleanup of Superfund sites. ORSG 96 SAN BERNARDINO MERGED AREA A MERGER Ik AMENDMENTS Report to the Mayor and Common Council HAZARDOUS WASTE SITES(Open/Closed).NORTHERN PORTION EXHIBIT A•20 SAN BERNARDINO MERGED AREA A i' Y a�moi� ,.• 4 ,..s. JA Cemnl City NOM 01 .._a 00 O .A,, as v .,er• 01 0 0qqj ®0 .IV 0 � 6 Ie,s,O D" . ..A MesdowbroowCemral City _ 4 ® t ....,s, • '°"� r ❑ Cemral city Eaet vw,ow. ♦♦ • �a rwr . ei �b ®' • T OINK) a ..., € g 1 • At � A, n.., } . �. Gl,U � Cemral City SOU[n Legend • ° b Su"Hund 81W Off. closes SBGORA Sway Arx T. _ vww.r> • Sncwuswrare, Cemm,Cq rann g m Sanrea Dry Of SBl PV,N,tlim GS ROad,e Env,OaGxlr ,CERCUS ao05ai D2 o] oa ®W. Q -T�s� N f U C CD W O U r a,r. v s 4 WO Q F n a s"n c .�3 yee z°i� p i QY € g 5 norson,ra.".w t' c .,xuxw o W a+ Y o O o co C Z e E a i �ffee Q '6 M-1 j vwen. o fWOWf� ��E � .eroaw � S 3 2 U Z w m f N � _ 3�® ' 0 d a s e > N W h _ a ¢aft A ua.v m H V N� LL O SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS _ Report to the Mayor and Common Council Until remediation of brownfield sites occurs, redevelopment efforts will be hindered. According to J.C. Norby &Associates, a professional real estate appraisal company, those who have purchased, invested in, or made loans on real estate impaired by chemicals and toxic compounds faced devastating consequences. J.C. Norby & Associates further note that, in many cases, the cost of remediation exceeds the property's market value. Short of a full property appraisal, it is difficult to fully assess how hazardous wastes may impair the property value of the affected site or the value of nearby properties. However, as reported by the National Association of Realtors, the presence of hazardous waste and its associated stigma can seriously impact the value of the subject property as well as the surrounding properties and neighborhoods.14 Furthermore, authors Michael Greenberg and Justin Hollander argue that the time needed to remediate a site, proximity to a contaminated site, and the type of contamination present are major constraints that can negatively impact the value and/or marketability of the contaminated site and surrounding properties.4' According to William Kinnard"a, the following criteria are commonly used for measuring the decreased market value of contaminated properties: 1. Cost to Correct 2. Reduced Marketability 3. Inability to Obtain Mortgage Financing 4. Reduced Net Operating Income 5. Higher Capitalization Rate Common causes of site contamination in Merged Area A are auto- and industrial-related. Uses such as gas stations, auto repair, dry cleaning, foundries, and recycling dominate Merged Area A and are known to pollute sites with contaminants such as lead, gas, motor oil, as well as other volatile organic compounds and metals. These contaminants have also been known to affect groundwater and soil as well as aquifers and wells used for potable water. If contaminated, the health, safety, and general welfare of the City's residents are at risk. To demonstrate impaired values, RSG developed pro forma analyses for a former gas station site in Merged Area A containing hazardous waste. As shown in Tables A-25 and A-26, the pro formas present the total cost of the site inclusive of remediation costs (Table A-25) and a similar site without contamination (Table A-26). Assumptions mirror those of the prior commercial pro fonnas presented in the previous sections, however, the lot square footage has been changed to reflect the actual site (41,800 all), the building square footage has been changed to reflect the maximum sized building which could be constructed (18,000 sf), the land purchase price has been reduced due to the presence of hazardous waste, and a line item for remediation costs has been included ($250,000). The remediation cost is a generalized figure and assumes the site contains leaking underground storage tanks ("LUSTs") which have released petroleum-based contaminants into the soil and groundwater. Cleanup costs for LUSTS vary from site to site based on the degree of soil contamination, the number of tanks that must be removed, and the extent to which contamination of the groundwater has traveled. Based on these factors, cost guidelines published by the SWRCB for the Underground Storage Tank Fund d1, and consuftation with several brownfields consulting firms, a cost estimate of$250,000 was used. As shown in Table A-24, which summarizes the cost of development shown in Tables A-25 and A-26, a site with hazardous waste will have an associated cost of$18.35 more per square foot to develop than a site that does not contain hazardous waste. This value is significant, and can make development and/or remediation of hazardous waste sites prohibitive. "Karen Swanson,"Field Guide to Effects of Hazardous Wastes of Property Values"National Association of Realtors March 2007. 45 M.Greenberg,and J.Hollander,"Neighborhood Stigma Twenty years Later:Revisiting Superfund Sites in Suburban New Jersey," Appraisal Journal, 2006. 45 William N.Kinnard,"The Cutting Edge 1998,"The Royal Institution of Chartered Surveyors,1998. "State Water Resources Control Board,"Cost Guidelines:Underground Storage Tank Fund(Final Draft),"2001. Q RSG ss SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Commercial Parcel with Hazardous Waste - Pro Forma Table A-24 San Bernardino Merged Area A SITE CHARACTERISTICS Lot Square Feet 41,800 Lot Coverage Maximum 0.50 Spaces(@ 300 SF per space) 72 Commercial Building(S.F.) 18,000 PROJECT COST SF/UNITS/SP PER SF/SP TOTAL ACQUISITION COSTS 41,800 $7.50 $313,500 Total Acquisition Costs $313,500 CONSTRUCTION: Offsite/Infrastructure/Utilities 41,800 $9.00 $376,200 Site Costs(including landscaping) 41,800 $2.00 $83,600 Parking(surface;per space) 72 $1,350.00 $97,200 Commercial Building Costs(Shell&TI) 18,000 $70.00 $1,260,000 FFE and TI 18,000 $10.00 $180,000 Hazardous Waste Remediation $250,000 Contractor Fee and General Conditions 14.0% $17.48 $314,580 Contingency 10.0% $14.23 $256,158 Total Construction $156.54 $2,817,738 Total Land and Construction $3,131,238 %of $ per Bldg. SOFT COSTS: construction Sq. Ft. Total A&E/Consultant Fees 6.0% $7.49 $134,820 Public Permits & Fees 5.0% $7.83 $140,887 Taxes, Insurance, Legal &Accounting 3.0% $4.70 $84,532 Marketing 5.0% $7.83 $140,887 Developer Fee(G&A/Profit) 12.0% $18.78 $338,129 Contingency 10.0% $4.66 $83,925 Total Soft Costs 32.8% $51.29 $923,180 FINANCING: Construction Interests 6.5% $12.16 $218,939 Financing Fees 3.0% $6.11 $109,907 Total Financing $18.27 $328,845 TOTAL PROJECT COST $243.51 $4,383,263 Source:See Appendix 3-Pro Forma Sources and Assumptions Q RSG 100 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Commercial Parcel w/out Haz. Waste - Pro Forma Table A-25 San Bernardino Merged Area A SITE CHARACTERISTICS Lot Square Feet 41,800 Lot Coverage Maximum 0.50 Spaces 1@ 300 SF per space) 72 Commercial Building(S.F.) 18,000 PROJECT COST SF/UNITS/SP PER SF/SP TOTAL ACQUISITION COSTS 41,800 $10.00 $418,000 Total Acquisition Costs $418,000 CONSTRUCTION: Offsite/Infrastructure/Utilities 41,800 $9.00 $376,200 Site Costs(including landscaping) 41,800 $2.00 $83,600 Parking(surface;per space) 72 $1,350.00 $97,200 Commercial Building Costs(Shell&TI) 18,000 $70.09 $1,261,620 Fie and TI 18,000 $10.00 $180,000 Contractor Fee and General Conditions 14.0% $15.54 $279,807 Contingency 10.0% $12.66 $227,843 Total Construction $139.24 $2,506,269 Total Land and Construction $2,924,269 %of $ per Bldg. SOFT COSTS: construction Sq. Ft. Total A&E/Consultant Fees 6.0% $6.66 $119,917 Public Permits& Fees 5.0% $6.96 $125,313 Taxes, Insurance, Legal&Accounting 3.0% $4.18 $75,188 Marketing 5.0% $6.96 $125,313 Developer Fee(G&A/Profit) 12.0% $16.71 $300,752 Contingency 10.0% $4.15 $74,648 Total Soft Costs 32.8% $45.62 $821,133 FINANCING: Construction Interests 6.5% $11.24 $202,252 Financing Fees 3.0% $5.85 $105,271 Total Financing $17.08 $307,523 TOTAL PROJECT COST $225.16 $4,052,926 Source:See Appendix 3-Pro Forma Sources and Assumptions Q RSG 101 SAN BERNARDINO MERGED AREA A MERGER 8,AMENDMENTS Report to the Mayor and Common Council Hazardous Waste Site Cost Comparison Table A-26 San Bernardino Merged Area A Project Cost per bldg sf Site with Site w/out Haz Waste Haz Waste A Former Gas Station Site -(18,000 bldg sf) $243.51 $225.16 $18.35 Source:RSG,Eco&Associates Considering the concentration of brownfield sites in Merged Area A, mitigation of active hazardous waste sites is necessary to facilitate redevelopment in Merged Area A. If not remediated, contaminated properties risk underutilization, impaired values, and continuing blighting conditions. The exorbitant costs associated with remediation of an active hazardous waste site are a major deterrent to private investment. Lease and Vacancy Rates Pursuant to CRL Section 33031(b)(3), abnormally high business vacancies4"and abnormally low lease rates are economic conditions causing blight. Lease Rates Leasing data in market reports prepared by real estate brokerage fine Colliers International and Loopnet show that Merged Area A had lower lease rates than the East Inland Empire Market Area ("Market Area") average in the third quarter of 2009, particularly in the office and retail sectors.49 Market reports indicate that decreases in port activity has reduced the presence of the large multi-national distribution companies that historically occupied industrial space in the Inland Empire.50 Table A-27 presents lease rate information for office, retail, and industrial uses in the Market Area and the San Bernardino, Riverside, and Ontario/Mira Loma sub-markets during the third quarter of 2009. Lease rates in Merged Area A for office and retail sectors are significantly lower than the Market Area. Lease rates in these sectors are also much lower than the San Bernardino, Riverside, and Ontario sub-market areas. Lease rates for office uses in the City of San Bernardino are 16% less than the Market Area. Merged Area A office lease rates are 36% less than the Market Area, even less than the City's low lease rate value. While industrial activity has strengthened in recent years in the neighboring West Inland Empire market, the East Inland Empire market, to which the City belongs, has not seen any improved performance. Experts predict that until consumer demand and import activity at the ports of Los Angeles and Long Beach rebound, the East Inland Empire market will continue to suffer. Market reports also indicate that sales activity of office buildings in the Inland Empire has completely stalled, with rental rates continuing downwards as landlords become less willing to allow vacancy rates to rise. The negative impacts on Inland Empire businesses have affected the revenue stream of office property, which in turn has led investors to shy away from the Riverside- San Bernardino metro areas s' Retail lease rates in Merged Area A are lower than the Market Area and are significantly less than the sub- market areas listed in Table A-27. Merged Area A retail lease rates are on average$1.45 psf/month which is $.21 to $.40 less than other comparable sub-markets in the Market Area. Lower lease rates impact the 4'Vacancy rate information based on market reports are not specific to Merged Area A and are based upon citywide vacancy rate data. d9 The East Inland Empire includes San Bernardino,Colton,Ontario,Riverside, Redlands/Loma Linda,Perris,Moreno Valley,Corona, and Rialto. so"Market Report—Industrial,"Colliers International,Third Quarter,2009. s'"Office Research—Market Update,"Marcus&Millichap,2009. O RSG 102 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council assessed valuation of retail properties therefore affecting the amount of property tax revenue generated that can be used to eliminate blight in Merged Area A. Unlike office and retail uses, industrial lease rates in Merged Area A show a greater value than the Market Area and comparable sub-markets. Brokers representing industrial properties in the City indicated that the industrial lease rates are inflated due to a flood of new stock and pre-leasing rates, which is not an accurate representation of the market. Many of these new industrial buildings remain vacant and brokers expect the artificially inflated industrial lease rates to decrease to encourage occupancy. The industrial vacancy rate, as discussed later in Table A-28, is 36.1% in the City which is extremely high indicating that property is not being leased. Office, Retail, and Industrial Lease Rates - 3rd Quarter 2009 Table A-27 San Bernardino Merged Area A Industrial Office Retail (Warehouse) Market Area Lease Rate Lease Ratel,2 Lease Rate East Inland Empire $ 1.97 $ 1.50 $ 0.32 Sub Market Merged Area A' $ 1.26 $ 1.45 $ 0.49 San Bernardino $ 1.65 $ 1.66 $ 0.33 Riverside $ 1.95 $ 1.67 $ 0.35 Ontario I $ 2.15 $ 1.85 n/a 1 Market report data from Colliers International not available for retail uses or Merged Area A. Data derived from properties currently for lease recorded on Loopnet. 2 Market report data from Colliers International not available for retail uses and the East Inland Empire Rate is based upon Loopnet lease rate data. Source:Colliers International,2009,Loopnet November 12,2009 Vacancy Rates Table A-28 shows that vacancy rates vary between submarket areas compared to the Market Area average. Industrial vacancy rates in the City are 35.6% higher than the Market Area and are much greater than the Riverside sub-market(17.9%). Vacancy rates tend to be higher in areas that have higher lease rates and, as illustrated in Table A-28 in the prior section, industrial lease rates in Merged Area A are greater than the Market Area average. As noted by a broker for CB Richard& Ellis, the City's state of the art industrial stock is not attracting tenants and is currently being out-competed by the cities of Riverside and Ontario due to issues like transportation costs. Conversely, office vacancy rates in the City are lower than the Market Area and the surrounding submarkets. Although, citywide office vacancy rates are lower than surrounding areas, local real estate experts indicated that vacancy rates reach upwards of 20% in some portions of Merged Area A. Particularly affected by high office vacancies is the Tri-City Project Area, which includes a business park located on Carnegie Drive that has lost 10 of 12 of its tenants. Q RSG 103 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Office and Industrial Vacancy Rates - 3012009 Table A-28 San Bernardino Merged Area A Industrial Office (Warehouse) Market Area Vacancy RatJ Vacancy Rath East Inland Empire 23.7% 23.3% Sub Market San Bernardino 16.6% 31.6% Riverside 21.6% 17.9% Ontario 33.1% n/a 1 Represents vacancy rates for the third quarter of 2009 2 Vacancy rate data for retail not available for the third quarter of 2009 Source:Colliers International,2009 During the Field Survey, 149 parcels were noted as containing at least one vacant commercial and/or industrial unit. While not comprehensive of all vacant units in Merged Area A, Exhibits A-22 and A-23 illustrate the location of parcels containing vacant units during the Field Survey. Only vacant units visible from the street are identified on the map. Properties with multiple units for rent were only reported as one parcel. Therefore, the number of vacancies in Merged Area A is expected to be greater than illustrated. Vacancy and Lease Rate Summary High office vacancies and low industrial lease rates are partially attributed to increased building activity in Merged Area A between 2005 and 2009. The citywide year-to-date absorption rate is negative 66,100 square feet, indicating that there is less demand for office spaces in the City.5 The significant increase of office space built in Merged Area A has oversaturated the market and forced building owners to lower lease rates to avoid high vacancy rates in the new building stock. Marcus& Millichap, one of the nation's largest real estate investment firms, reports that supply and demand of office space is significantly out of balance, with demand continuing to weaken in the Riverside-San Bernardino markets 53 As previously discussed, industrial lease and vacancy rates in Merged Area A are much higher than surrounding areas. The increased supply of industrial space resulted in a vacancy rate of 31.6% in the City. Lease rates have not decreased for industrial uses and therefore vacancy rates are higher than surrounding areas. Additionally the year-to-date absorption rate for industrial uses in the City is negative 593,900 square feet indicating decreased demand for industrial properties.54 Consequently, unless lease rates reduce to optimal levels that increase demand, vacancy rates will continue to rise and further contribute to economic blight in Merged Area A. u"Inland Empire Once Market Report",Market Report, Colliers International.Third Quarter,2009,3. "Office Research-Market Update,"Marcus 8 Millichap,2009. $°'Inland Empire Industrial Market Report",Markel Report,Colliers International,Third Quarter,2009,3. ORSG 104 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council VACANT PROPERTIES-NORTHERN PORTION EXHIBITA-22 SAN BERNARDINO MERGED AREA A i Central City North .L 51 ..,a. x 6nr t icy} t r�l.� � .�.5� t •I r=' ��� 's•rxiu .-r,c_a• aavaas � Yin p w..as� Rid q „ »waarar ]S■ . y _8 Jal ,rua s"5, �,jl Meadowbro WCentral City : a 5 � J Cerrlral Chy Eaet r.ua uw.ao u 01- ,away We ' unwss alga arm' R a 1a. i %I Ilk a or ar Wci Ma � } n...r.ai 61 CeMrol City South o r ef' rerwwmuv ry .a y c ; nuwrwa avrrrm. rrw .�.rwrcrl,w 8 rl.wuasaa �o- F�4 �� � Y4 r•�l �j 5 � fi 3 Legend — Gnmercw Yxelrea{6•ew Mwe llnul & _ � •rvaai C 11*GV Math wnw.IDrnn ahvn Car East '? o. a�� # N w�MlnC, A �] C4wra1 CIY 5Nlh - Crona� _ � snssi e SWKes Gry of San penrarWm GlS Ltparlmart Enrvrmtw Cadxlal CERCt15 000505 0 03 Oa ®Miles Q RSG - -- N Z � W =O O p V N L z W 0 Q y 8 s° m i o u R X a 6 s i r � o W W G y T i 'g L wwov,x 5 o s TIMM- 2 i Y r "s r 1 ' I ox— O W IL a S It � z Q m c a 5 a � 1 L m O SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Excess of Bars,Liquor Stores, orAdult-Oriented Businesses An excess of bars, liquor stores, or adult-oriented businesses that has resulted in a significant public health, safety, or welfare problems is a condition of economic blight pursuant to CRL Section 33031(b)(6). In 1955, an amendment to the State Constitution took effect, removing the duty of regulating the manufacture and sale of alcoholic beverages from the State Board of Equalization and placing it in the new Department of Alcoholic Beverage Control ("ABC'). The mission of the ABC is to administer the provisions of the Alcoholic Beverage Control Act in a manner that fosters and protects the health, safety, welfare, and economic well- being of the people of the State. ABC Investigators are peace officers under Section 830.2 of the California Penal Code and are empowered to investigate and make arrests for violations of the Business and Professions Code that occur on or about licensed premises. Investigators are further empowered to enforce any penal provisions of the law in any place in the State. Licensees who violate State laws or local ordinances are subject to disciplinary action and may have their licenses suspended or revoked. A suspension of a license temporarily prohibits the licensee from engaging in sales of alcoholic beverages; a revocation of a license permanently prohibits such sales. Within Merged Area A, there are a total of 35 active liquor licenses, or 4.9 liquor licenses per 1,000 residents, compared to a total of 346 liquor licenses, or 1.72 per 1,000 residents, in the rest of the City (See Table A- 29). Merged Area A licenses are clustered within the CCN and SEIP Project Areas. The licenses within the SEIP Project Area are largely for national restaurant chains, and only one violation for the sale of alcohol to a minor has occurred in the last year. Many of the licenses within the CCN Project Area, however, are related to liquor stores, convenience stores, and bars and nightclubs. Businesses in the CCN Project Area have received a greater number of ABC violations (7, or 3.5 per 1,000 people) in the last year. These violations have included sales of alcohol to minors, false license fee, failure to provide books, exceeding limits of a license,violation of a suspension, and failure to maintain a proper distance(in an adult establishment). Liquor Licenses and Violations Table A-29 ^ San Bernardino Merged Area A Licenses Violations No. of per 1,000 No. of per 1,000 Area Population Licenses people Violations people Rest of City 201,131 346 1.7 70 0.3 Project Area A 7,204 35 4.9 9 1.2 CCE 1,594 0 0.0 0 0.0 M/CC 560 3 5.4 1 1.8 CCN 2,025 7 3.5 7 3.5 CCS 248 3 12.1 0 0.0 SEIP 402 14 34.8 0 0.0 South Valle 1,741 2 1.1 1 0.6 Tri-City 634 6 9.5 0 0.0 Source:Califomia Department of Alcoholic Beverage Control as of November 3,2009 The median income of Merged Area A is significantly lower than surrounding areas and has a higher concentration of liquor-selling establishments. Furthermore, the CCN Project Area has one of the lowest median incomes in Merged Area A and has the highest concentration of establishments with liquor licenses and violations. Various studies have shown that a high density of liquor licenses correlates with an increase in crime and economic decline.ss For example, a 2008 study of violent crime in Los Angeles before and after "Ventura County Limits,"Evaluating the Impact of Outlet Density on Crime,"June 2005. Q RSG 107 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council the destruction of many alcohol outlets during riots in 1992 found that "the reduction in alcohol availability within a census tract was associated with a drop in the assau@ive violence rate at the census tract level"56 CH particular concern is the prevalence of outlets selling single-serve containers of beer and malt liquor. According to a 2006 study in Riverside County, sales of these beverages are correlated with an increase in violent crime and gang activity. A 2008 survey of outlets in San Bernardino found that 88 percent of outlets sold this type of beverage s7 Similarly, a 2009 RAND Corporation study found that "]a]lcohol outlets are concentrated in disadvantaged neighborhoods and can contribute to adolescent drinking."58 Additionally, according to the City's Police Department, liquor stores in the area are known to be targeted by gangs as hubs for the distribution of illegal narcotics, thereby increasing crime in the area. As these distribution centers are identified and closed, the gangs simply move on, pressuring new businesses to abet their distribution networks.With gang activity on the rise in the immediate vicinity, liquor stores in Merged Area A may again be targeted for this illicit activity.59 Exhibits A-24 and A-25 present maps showing locations of liquor licenses within Merged Area A, overlaid with reported Part 1 crimes in surrounding areas. 56 Oingzhao Yu at at.,"Multilevel spafio-temporal dual changepoint models for relating alcohol outlet destruction and changes in neighborhood rates of assaultive violence,"Geospatial Health,2008,172. 97 Coalition for a Drug-Free San Bernardino,*Single Serve Alcoholic Beverages," http://w .publicstrategies.org/PDF/20090805/20SSIB/2OR5.pdf 56 Khoa Dang Truong and Roland Sturm,"Alcohol Environments and Disparities in Exposure Associated With Adolescent Drinking in California."American Journal of Public Health,February 2009,264. 5°District Resource Officer Joseph Valdivia,Telephone Conversation,December 3,2009, O RSG 108 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council ALCOHOL SALES AND CRIME -NORTHERN PORTION EXHIBIT A-24 SAN BERNARDINO MERGEDAREAA > IT IsI a Jo Central City •� —T-.w. s..LLS. �wuu • • • ...ou own 0 3 Meadowbrook/Cemral City r • fs,. Y° & t � J Cenral city East c • • • Bel + • x- 1 .xs _ aa.."N...ae. � i1 u Y"�J •uY - .,+.,. • �- .w, a 4 Tic, r� ;• •. • , . • • Cental City South .....ru—`- - + 3 % Legend ,� a ""`°" " 3 Y • :W5Pat16nnea NeaPmlMMeaP } /1� � vo,a..vu - OnSile Rkdwl9ks � .l e z _ On eib P4�ol5akz ?! rae 8 Gnba Cnv Ibnn �' cemraicnr sass i -3 E N mncuawwr<auaian _ i umaicnr sown - R cam. .r.e s. 8 c omal 02 aJ oa Swrtes C+ydSan ebruMro GIS LWemmmt AMrovan ®.� O R513 RS O -- 109 Z \ § ( § x f ■ . � ; � k0 ] , § � _ • � " '® � �^ � PC LLJ � : . . - _ - � • f \ .� } _A . \ am / | ) ( . \ } \ \ \ f \ ( ! $ � ■■\0 f e . / � SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council High Crime Rate CRL Section 33031(b)(7) states that a high crime rate 2008 part 1 crimes per 1,000 Persons Chart A-1 which constitutes a serious threat to public safety and welfare is an economic condition that causes blight. According to Agency staff as well officers who patrol MelgedAreaA zoa2 much of Merged Area A, high instances of crime negatively impact the perception of an area and make Remainde,of business owners and investors less willing to locate their San Bernardino City 's.a businesses or start new ventures in the area because of an increased level of risk. This perception of crime and Redlands 3 1 danger can also negatively impact property values which 1 can lead to disinvestment in a community where j property owners do not believe there is a benefit in Highland 2 maintaining their buildings, furthering deterioration and dilapidation so Col Data Data received from the Police Department as well as the FBI's Uniform Crime Reporting Database shows that Merged Area A has a higher crime rate per 1,000 Rialto 27 persons than the rest of the City(excluding Merged Area A), as well as neighboring and nearby jurisdictions. The Riverside 0.3 data compares the rates of FBI Part 1 Crimes which are uniformly categorized so the FBI may be able to track crime rates consistently across jurisdictional and state Ontario .2 boundaries. Part 1 Crimes include: aggravated assault, -- burglary, criminal homicide, forcible rape, robbery, theft, o so 200 250 200 250 and vehicle theft. crone,,rl,=Parson, Scum:SOn B aNlno Palla OrpartmenG fBl Uniform Come NeOONng OaWbo)e Chart A-1 compares the rate of Part 1 crimes per 1,000 persons in 2008 for Merged Area A to the rates of nearby jurisdictions". Merged Area A had a rate of 204.2 crimes per 1,000 persons, which was 309% greater than the rest of the City of San Bernardino. The neighboring jurisdictions of Redlands, Highland, Colton, and Rialto,which are much smaller in population than San Bernardino, all had much lower crimes rates than Merged Area A. The cities of Riverside and Ontario, although not in the immediate vicinity, are similar in population to the City, but still had a significantly lower crime rates than Merged Area A in 2008. 60 Jerome Rothenberg,George Galster,Richard Butler,and John Pitkin,"The Maze of Urban Housing Markets:Theory, Evidence,and Policy,"1991,249-288. a'Data comparing jurisdictions is taken from the FBI Uniform Crime Reporting Database,which only reports full year data.The most recent year available is 2008. ORSG ---T11 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Table A-30 provides a summary of Part 1 crimes in Merged Area A as well as the rest of the City for the period of January 1 through October 31, 2009. The table also shows that 12.9%of all Part 1 crimes that were committed in the City occurred within Merged Area A even though it occupies only 7.6% of the total land in the City. Summary of Part 1 Crimes in 2009 Table A-30 San Bernardino Merged Area A % of Total San Personal Property %of Total Bernardino Land Crimes Crimes Total Crimes Crimes Area' Merged Area 101 1,092 1,193 12.9% 7.6% Remainder of San Bernardino 975 7,099 8,074 87.1% 92.4% 9,267 ' Only includes crime data reported through October 31, 2009 2 Includes public right-of-ways Source:San Bernardino Police Department To further substantiate the disproportionate amount of crime that occurs within Merged Area A, the exhibits rV below show that Merged Area A has significantly higher rates of both personal (violent) and property crimes than the rest of the City. Charts A-2 and A-3 show that Merged Area A has personal and property crime rates of 14.0 and 151.6, respectively, per 1,000 persons. These crime rates are 189% and 329% higher, respectively, than the rates for the rest of the City. 2009 Property Crimes Per 1,000 Persons Chart A-3 2009 Personal Crimes Per 1,000 Persons Chart A-2 160 w.5 16.0 1A0 110 11.0 120 2.0 "D 10.0 60 8.0 fi0 6.0 48 40 35.3 1.0 20 2.0 0 — 0.0 Merged AreaA Remainder of City - Merged AreaA Remainder of Crty Property Crimes Property Crimes Personal Crimes Personal Crimes The disproportionately high crime rates that occur within Merged Area A demonstrate a serious threat to public safety and welfare. District Reporting Officer Joseph Valdivia, who has many years of experience in and around Merged Area A as well as the rest of City, agrees that the area has a significant amount of violent crime, especially drug and gang-related crime. He also noted that, as the economy has declined, drug dealing and thefts have been on the rise. According to Officer Valdivia, pockets of significant gang and drug related crime exist along Sierra Way, especially at Rialto Avenue, which is on the eastern border of the M/CC Project Area. Gangs have been heavily recruiting in the areas just east of Merged Area A and many crimes in Merged Area A may be O RSG 112 SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council associated with this increased activity. Much of this type of violent crime tends to be focused around rental housing as it allows drug dealers and gangs the ability to be transient. This is in line with the data reported by the Police Department. Exhibits A-26 and A-27 show maps of all the Part 1 crimes for Merged Area A. The M/CC, CCN, and CCE Project Areas, which are predominately residential and whose housing units are 73%, 70%, and 65%renter occupied, respectively, have higher concentrations of serious crimes than those that are more industrial or commercial in nature. However, Officer Valdivia also mentioned that burglaries are on the rise in the areas around Hospitality Road. Again this is consistent with the crimes shown in Exhibits A-26 and A-27. a� ORSG 113 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council PART CRIME-NORTHERN PORTION EXHIBITA-26 SAN BERNARDINO MERGED AREA A a 1 I Ire ovvi � N• ` - • � • 1 �Z u ni Lei _ t n • a £ - a • •W o • • • o• b Cemral City Norlhs •d • Q O C O s Jm 40 4 • • • j •P °'�•• • . • O • m.l. a • • • • • • M • M•aAOw6rook/GMral Cily • • •ti • u,alr,WU •• r • • !' P W^^ � t •• --� GMral City East 3 O 4 oil d � J K`cwcvus s • �` � .xwci i � (8 cownae s. �_ • y OrrrJic J . _ u 1 ° • _ • c uu l Ti • •• • , • • � • i8i 6 xJnu x.mn • u • •. IT e�:wviY. u • ]3 Caa_GN � ,Eer smw `WHOM • f W a• 71 Legend • Central City South 2008 Part 1 Crimes s •• 0 Personal Crimes - • Property Crimes �° y ls..,,c s,s xW�e s• 4 QCentral City North c s , °"Y6s°• Y Pg g Central City South Q Southeast Industrial Park t # • o„xocaW Y .,x!!T r7 Meadowbrook/Centml City _ N 3 Central City East cx..... ! Sources San Bernardino Police Department,ESRI 0 0.1 0.2 04 0.0 as Mlies Q RSG 11a } � • . } ( � . . - . ` � . / ■ I - � *ci k ® - _� . - j ) ) ) ! ! I ; h ( z � SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council SUMMARY OF MERGED AREA A BLIGHTING CONDITIONS Both physical and economic blight remain in Merged Area A placing an undue burden on the community. Redevelopment assistance to address these conditions in Merged Area A continues to be critically necessary to alleviate these conditions in Merged Area A. Without continued access to tax increment financing, it is likely that many of these conditions will go unresolved and further decline will occur in Merged Area A, particularly given the budgetary challenges of the City's General Fund. The proposed Merger and Amendments would provide the Agency with additional financial capacity to remediate these blighting conditions throughout Merged Area A. Summary of Physical Blight Physical blighting conditions remaining in Merged Area A include: unsafe and unhealthy buildings; dilapidation and deterioration; faulty or inadequate sewer and water utilities; under-sized parcels hindering the viable use of lots and buildings; and under-sized lots that are in multiple ownership. Instances of dilapidation and deterioration pose a significant health and safety threat to residents, workers, and patrons. Unreinforced masonry buildings existing in Merged Area A pose a significant threat to persons who occupy such structures and are costly to retrofit. Merged Area A demographics have proven that the capacity of residents to reinvest in their properties is hindered by a high poverty rate, low educational attainment, and low median household income. There is also a high percentage of renter occupied units in Merged Area A. Research indicates that property stakeholder or absentee landlords typically take minimal care of their rental properties,which leads to the dilapidation and deterioration of structures. If not addressed, deterioration will continue perpetuating dilapidation of additional properties. Redevelopment provides tools and funding to provide incentives for property owners to invest in their properties, and creates avenues to hold those property owners accountable for the maintenance and upkeep of their properties. Faulty or inadequate sewer and water utilities exist in Merged Area A. Leaking septic systems and sanitary sewer blockages that cause back-ups and overflows release harmful pathogens, bacteria, chemicals, and other toxic pollutants adversely affecting the health and safety Merged Area A residents and workers. Inadequate water utility infrastructure puts the safety of persons in low water pressure zones at risk where there is inadequate pressure to provide fire protection. The lack of infrastructure also deters developers because of costly improvements that detract from project profitability and thus hinders development. Due to the high cost of infrastructure improvements, it is unlikely that developers and residents will be able to eliminate these deficiencies on their own without redevelopment assistance. Tax increment revenue generated in Merged Area A can be used to fund such infrastructure improvements. Inadequately sized parcels are a major problem in Merged Area A; over one-fifth of parcels exhibit this condition. The economic viability of under-sized residentially, industrially, and commercially zoned parcels are significantly hindered by their size. Furthermore,48%of these parcels are in multiple ownership making it difficult for the private sector to assemble properties suitable for development. Redevelopment tools can be used to help business and property owners assemble properties that support new development that is economically feasible, while improving building conditions in Merged Area A. Summary of Economic Blight Economic blighting conditions remaining in Merged Area A include: stagnant or depreciated property values; impaired property values due to hazardous waste sites; low lease rates and high vacancies; a high concentration of alcohol-serving or selling establishments; and high crime rates. Both residential and commercial property values are depreciated when compared to surrounding areas. The median sales price of residential properties have declined Merged Area A. Similarly, commercial and industrial property sale values are declining in Merged Area A. Decreased property values not only affect the local jurisdiction's ability to provide services supported by property tax revenue or tax increment revenue, but indicate an economic decline of an area. Furthermore, decreased property values discourage property owners from making improvements to their properties. Redevelopment can provide economic assistance to O RSG ns SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council rehabilitate or provide development subsidies as an incentive to invest or reinvest in such properties. As economic conditions in an area improve,the related blighting conditions decrease. The presence of hazardous waste significantly decreases the value of the property and hinders development on such property. Merged Area A contains significant numbers of hazardous waste sites, including two (2) Superfund sites. Such sites have significantly reduced property values and pose a health and safety threat to Merged Area A residents and workers. The high cost and risk to remediate and redevelop contaminated properties can often prohibit investment without redevelopment assistance. The Agency is currently implementing a program to help address hazardous waste sites. Redevelopment funds may be used to further assist with the cost of cleaning up hazardous waste sites. Merged Area A commercial lease rates are much lower than surrounding areas. Low lease rates negatively impact property values by decreasing the amount of income a property can generate, thereby diluting the economic incentive to develop or locate businesses in the area. High vacancy rates in Merged Area A are partially due to a weakened market and reduced port activity. High vacancy rates are indicative of the economic decline of an area and reduced income generated by such property. These conditions of blight deter development from occurring in the area. Redevelopment provides tools to market area businesses and provide incentives to attract and retain businesses. The high concentration of alcohol-serving establishments in Merged Area A cause major problems for the San Bernardino Police Department and is a drain on resources. There is increased crime in this area as a result of the overconcentration. Changes in uses through redevelopment can decrease the number of these types of adverse uses. Merged Area A has an extremely high crime rate that is significantly higher than surrounding areas. Crime negatively impacts an area by providing a disincentive for people to invest in an area. Redevelopment tools can be used to reduce crime and gang activity in Merged Area A. MIN CONCLUSION Although Merged Area A contains individual parcels that no longer exhibit evidence of physical blight,they are frequently in proximity to other parcels that are in disrepair. This checkerboard pattern of blighted and non- blighted parcels, as shown in Exhibits A-4, A-5, and A-6, points to the fact that blighted parcels are not concentrated in any particular neighborhood, which indicates that Merged Area A as a whole is negatively impacted by the scattered pattern of blighted properties. Furthermore, conditions of economic blight, such as crime or vacancy rates, affect large portions of Merged Area A and are not site specific. Photographs of physical and economic blighting conditions are documented in Appendix 1. Based on the research and analysis presented in this section, it is evident that Merged Area A continues to suffer from various physical and economic blighting conditions. Although the Agency has made progress in remediating some of the conditions of blight and there has been private investment in Merged Area A, further actions and improvements are needed to alleviate current conditions. The Merger and Amendments propose to increase current financial limitations, effectively increasing the Agency's ability to continue to actions needed to eliminate blight from Merged Area A. By merging the Project Areas, the Agency will have greater ability to leverage resources across Project Areas to eliminate blight throughout and for the benefit of the entire Merged Area A and the community at large. Receipt of additional tax increment revenue provides the Agency with additional capital to implement blight eliminating projects, thus alleviating current conditions that are threatening the health and safety of persons who live and work in Merged Area A. These projects include upgrading and improving public infrastructure, working toward the continued enhancement of property values, enabling economic revitalization of commercial and industrial enterprises, and increasing, improving, and preserving the supply of affordable housing. CRL Section 33333.11 requires that a map be created identifying portions of the M/CC and CCN Project Areas that are no longer blighted and remain blighted, parcels that are necessary and essential for elimination of remaining blight, locations where tax increment may be spent in Merged Area A during the 10-year O RSG 117 SAN BERNARDINO MERGED AREAA MERGER&AMENDMENTS Report to the Mayor and Common Council extension. Furthermore, CRL Section 33451.5 requires that the same map be prepared as part of the report to State Department of Finance and the Department of Housing and Community Development. Exhibit A-28 is a map of Merged Area A illustrating the location of blighting conditions detailed in this Section, along with parcels necessary and essential for the elimination of blight, and areas of Merged Area A that are no longer blighted. Parcels necessary and essential for the elimination of remaining blight include parcels already owned by the Agency that are slated for redevelopment and vacant parcels within Merged Area A. Inclusion of these vacant parcels is necessary and appropriate because they are negatively impacted by the economic blighting conditions previously described in this Section, and are located adjacent to or in the vicinity of other blighted parcels. These vacant parcels are underutilized and, because of their proximity to other blighted parcels, are unlikely to be developed to their highest and best use without redevelopment assistance. Furthermore, the elimination of blight on adjacent parcels may require the development or use of these vacant lots, making them both necessary and essential for the elimination of remaining blight. O RSG.—.--.—. --- �iie SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the-Mayor-and Common Council BLIGHTED,NOT BLIGHTED,AND NECESSARY&ESSENTIAL FOR REDEVELOPMENT EXHIBITA•28 SAN BERNARDINO MERGED AREA A Central City orth 1 1 ), -.. —? = ty y j I Tri-CI -t Central city Eat a Legend 6 e Blighted Parcels Parcels necessary d,essential y for effective redevelopment MeadowbrooklCerdral City 'P"°b no1 in n inw ea dymed orne mryandeveMlalfw ,:.T,. is Megvene&velopmentem not wnv4red blighted 4�- E,, G Central City North - Central City South Central Cray East —� g £ �.4 :n—r r�Meadowbrook/Central CRY a [raj Central City SPUm ✓ i }� `� a 117-11 Southeast Industrial south valve r , I Southeast Industrial AM n,w 3� Tri-City 4... r,2a n 1\1f Jul SaRh Valkf...1 Bann ClryMS.n¢amwdro GeS bpMmM Melawn mOrSGF,Nyvwy Sp pp NOi o oe 02 da 06 oe ®V'xc ®RSG tes Projects and Programs to Eliminate Blight SECTION B: PROJECTS AND PROGRAMS TO ELIMINATE BLIGHT This section provides a description of the projects or programs proposed to eliminate the remaining blight, how they will improve the conditions of blight, and the reasons why the projects or programs cannot be completed without the Merger and Amendments. While the Agency has been effective in eliminating blight through public facilities and infrastructure improvements, site acquisition and clearance, and new construction and rehabilitation projects, significant blight remains prevalent throughout Merged Area A, as detailed in Section A. The Agency will continue to carry out consistent projects and programs in Merged Area A, but seeks to augment its financial capacity to continue to implement a corridor-based approach to the elimination of blight. Rather than focusing on piecemealed projects within individual Project Areas, the Agency's focus is to address blighting conditions along key corridors in Merged Area A (e.g., Waterman Avenue, Baseline Street, Arrowhead Avenue, Hospitality Lane, Orange Show Road), and invest in the revitalization of the City's "Downtown Core." The Downtown Core is generally bound by 6th Street to the north, Waterman Avenue to the east, the 1-215 Freeway to the west, and Rialto Avenue to the south. It encompasses the southern half of Central City North, almost all of Central City East and Meadowbrook/Central City, and a northern portion of Central City South. See Exhibit B-1 below. DOWNTOWN CORE VISION/ACTION PLAN STUDY AREA EXHIBIT 8-1 © SAN BERNARDINO MERGED AR EAA •- ., y __, Central City East Cant al City North i a "" i i n w � riF ^StJ'1 }1''N t;i�ll.f. ' 1 `°""b' �•• , MwdowbrooklCaMral'Day Central City South Souroas:ESRI. City or San Bernardino GIS Department o 0.1 0.2 0.4 0.6 08 Miles O RSG I _i 20 SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council DOWNTOWN CORE VISION/ACTION PLAN The Downtown Core is currently home to local, regional, state, and federal government centers (e.g., City Hall, County administrative offices, Courthouse, IRS, Consulate General of Mexico), the San Bernardino Convention Center, an emerging Theater District, Carousel Mall, educational and workforce development centers, a public transportation hub, Seccombe Lake, affordable housing, and other new development projects. To cast a strategic vision for the revitalization of the Downtown Core, the City and Agency recently completed the Downtown Core Vision/Action Plan in summer 2009, which created a visual simulation of the Downtown Core's redevelopment potential. Key elements of the Downtown Core Vision/Action Plan include a new intergovernmental civic center complex, a courthouse building, a night-time entertainment Theater District with retail and restaurant uses, a transit village, Court Street Square, a Main Street retail corridor, a new hotel to complement the Convention Center, and new Seccombe Lake and Meadowbrook Park residential and mixed use development projects. A vision poster of the preferred plan from a June 1, 2009 Common Council presentation is shown in Exhibit B-2 below. EXHIBIT B-2 All ANN`I ! " Amman Sart �„ <TH is is c�1sq�,E 1 C Ro -4 all R ALTO 2+'i "I ■l rn mitlihpr PrEFrlRrc PLAN The Downtown Core Vision/Action Plan casts a long-range revitalization strategy that will require significant public-private investment and redevelopment tax increment financing to assemble land for development, upgrade public infrastructure and utility systems to meet increased service demands, create new parks and public transportation systems to serve future residents and visitors, and build affordable housing to create a O RSG _ 121 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council balanced community. The catalyst projects and accompanying infrastructure improvements envisioned by the Downtown Core Vision/Action Plan will eliminate blighting conditions by creating jobs, increasing income levels, assembling and redeveloping blighted properties, replacing aged infrastructure, addressing incompatible uses, increasing property values, remediating environmentally contaminated sites, reducing office and retail vacancies, creating needed commercial facilities, and addressing uses that contribute to the threat to the public health, safety,and welfare of residents in Merged Area A. The proposed Merger and Amendments will allow the Agency to leverage and pool tax increment revenues from the affected Project Areas to implement the Downtown Core Vision/Action Plan for the benefit of the entire Merged Area A. New tax increment revenues generated from increased property values resulting from property revitalization can be invested toward additional public improvements in the Downtown Core and other parts of Merged Area A. The Agency estimates $75 million in project costs for implementation of the Downtown Core Vision/Action Plan through the life of the Merged Plan. The proposed 10-year extensions of the Central City North and Meadowbrook/Central City Project Areas are needed to: (1) Allow sufficient time for the Agency to implement the long-range objectives of the Downtown Core Vision/Action Plan in those Project Areas, particularly given the current temperature of the real estate market; and (2) Create sufficient financing capacity in those Project Areas as redevelopment proceeds to finance public facilities and infrastructure upgrades and facilitate key catalytic development projects. The proposed increases in the Agency's limitations on tax increment collection and bonded indebtedness will ensure that the Agency has sufficient financing capacity to fund redevelopment activities throughout Merged Area A, including the Downtown Core. Given the current economic climate and troubling trends in the real estate market, implementation of major programs like the Downtown Core Vision/Action Plan cannot reasonably be expected to occur either by private enterprise or governmental action alone, but only by leveraging the unique redevelopment powers and financing capabilities of the Agency to create public-private enterprise activities. This is especially true now as the City struggles to address its own general fund budgetary gap. With little to no new revenue streams available to implement the Downtown Core Vision/Action Plan, the City will rely heavily on the Agency to secure funding for next steps under the Plan. With increased financial responsibility to carry out major projects and programs in Merged Area A, the proposed Merger and Amendments is necessary to ensure the Agency has adequate financial capacity and tools to see these revitalization activities through to successful completion. PROJECTS AND PROGRAMS In addition to Downtown Core revitalization, the Agency proposes to eliminate blight throughout Merged Area A through the implementation of the following projects and programs along key corridors and at prime opportunity sites. The following projects and programs also reflect the proposed capital improvements projects that are required to be identified in the Merged Plan. PUBLIC FACILITIES AND INFRASTRUCTURE IMPROVEMENTS These projects and programs involve the replacement and upgrading of public facilities and infrastructure to support existing uses and new development. Redevelopment activities include circulation upgrades and street improvements, parks and recreation/community centers, public safety improvements, infrastructure assessments/plans, utility improvements (e.g., sewer main replacement/relocation, high groundwater table/liquefaction mitigation), flood control, bikeways and trails, and noise attenuation. The Agency estimates $50 million in project costs for public facilities and infrastructure improvements through the life of the Merged Plan. ENVIRONMENTAL CONSERVATION These projects and programs seek to increase the long-term viability, relevance, and cost-effectiveness of existing and future buildings in Merged Area A. Redevelopment activities include solar and geothermal building retrofits, research and development, and studies and plans. The Agency estimates $10 million in _ project costs for environmental conversation programs through the life of the Merged Plan. ORSG 1E SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council ENVIRONMENTAL REMEDIATION AND BROWNFIELDs REVITALIZATION These projects and programs seek to mitigate environmental threats to public health and safety, and transform contaminated, underutilized properties, otherwise known as "brownfields," into productive assets of the community. In 2008, the Agency was selected to receive two separate grants from US EPA for Communitywide Brownfields Assessments to inventory brownfield sites and conduct Phase I and Phase II Environmental Site Assessments on priority sites with high revitalization potential. These grants can ideally be used by redevelopment agencies as "seed money" to create comprehensive, proactive brownfield revitalization programs. The Agency also possesses unique powers under the Polanco Redevelopment Act (CRL Sections 33459-33459.8)to transfer and mitigate legal and financial liabilities that would otherwise deter a property owner or developer from seeking to better utilize brownfield sites. Redevelopment activities under this project/program, include community outreach, grant funding, and implementation of the sbX Bus Rapid Transit Project,an interagency effort with Omnitrans, the regional transportation authority, to implement a bus rapid transit system that would traverse and interconnect 15.7 miles of the City, many portions of which include right-of-ways containing environmental pollutants regulated by federal and state oversight agencies. The Agency estimates $3 million in project costs for environmental remediation and brownfields revitalization through the life of the Merged Plan. LAND USE PLANNING TO GUIDE REDEVELOPMENT These projects and programs involve updates to land use goals, plans, and policies needed to effectively implement the Agency's redevelopment activities. For example, while the Downtown Core Vision/Action Plan provides a visual simulation of the City's Downtown revitalization goals, it does not update the City's existing General Plan designations or zoning to set forth new development standards and design guidelines necessary to implement the vision. Preparation of a Downtown Core Specific Plan or Overlay would provide the needed updates. Land use plans also provide the framework for planning and financing infrastructure upgrades that will support new development. The Agency estimates $2 million in project costs for land use planning through the life of the Merged Plan. PUBLIC TRANSIT These projects and programs seek to increase public transit systems through Merged Area A. Most notably, a key priority for the Agency will be the ongoing collaboration with Omnitrans to implement the sbX Bus Rapid Transit Project. Redevelopment activities include sbX line right-of-way improvements, sbX stops, transit stations, and transit-oriented development projects. The Agency estimates $15 million in project costs for public transit through the life of the Merged Plan. INFILL DEVELOPMENT PROJECTS AND AFFORDABLE HOUSING These projects and programs involve site clearance, land assembly, and development of infill projects in Merged Area A, including affordable housing. Redevelopment activities include property acquisition, studies and plans, and public facilities and infrastructure improvements to support infill projects. The Agency estimates $75 million in project costs for infill development and affordable housing through the life of the Merged Plan. ECONOMIC DEVELOPMENT ACTIVITIES These projects and programs seek to complement the Agency's goals for urban revitalization by supporting economic development activities to expand and attract businesses to Merged Area A, and provide small business assistance and development. Redevelopment activities include fagade improvement programs, business outreach, Enterprise Zone administration, and efforts to augment benefits provided through the Small Business Administration 7(a) Loan Program. The Agency estimates $20 million in project costs for economic development activities through the life of the Merged Plan. NECESSITY OF MERGER AND AMENDMENTS As described in the Introduction section of this report, the City's budgetary struggles this year has created an increased City reliance on the EDA's tax increment funds to offset costs for capital improvement projects in Q RSG 123 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council the Project Areas that would otherwise be funded by the City's General Fund. As the state's budgetary woes continue, the fiscal crisis for local and state governments is not expected to be cured for at least another two to three years. The residential foreclosure epidemic and struggling housing market has led to a significantly high volume of Proposition 8 reassessments of residential properties in Merged Area A that have been initiated by the County Assessor, as required by Proposition 8, and by individual property owners. These reassessments result in lost tax revenues, including tax increment collected by the Agency. While the residential market is beginning to show signs of recovery, economic forecasts and real estate market reports forewarn of a looming commercial real estate crisis. CONTINUING ECONOMIC AND REAL ESTATE CHALLENGES In a September 16, 2009 press release, "the UCLA Anderson Forecast conclude[d]that the worst recession in seven decades likely ended in the [third] quarter, but then stated] that the negative impact of the downturn will last well into the next decade."62 The Anderson Forecast indicated that residential sales are increasing and conditions are ripening for new residential construction. However, in a June 16, 2009 presentatiorl at UCLA Anderson's Economic Forecast Conference, the keynote address by Mike Kirby, Chairman and Director of Research at Green Street Advisors, warned of a potential commercial mortgage debacle stemming from commercial mortgage-backed securities ("CMBS"), similar to that of residential sub-prime lending. Kirby pointed to the fact that "the pace of commercial mortgage originations exploded between '05 and '07 at the same time that underwriting standards became extraordinarily loose," including"very aggressive loan-to-value ratios amidst an environment where appraisals were often inflated and borrowing costs were well below [2009] levels." Kirby explained that"a large portion of the '05-'07 loans—about$185 billion of the$600 billion total — are scheduled to mature between 2010 and 2012, five years after origination." CMBS delinquency rates and defaults are already on the rise and are expected to spike in coming years. While public real estate investment trusts ("REIT") are expected to infuse new equity into the market as they did in the 1990s, the positive effect on the commercial real estate market probably will not take effect for several more years. If a major decline in the commercial real estate market occurs during the next several years, it is prudent to assume that both Assessor-initiated and owner-initiated Proposition 8 reassessments will shift from the residential to the commercial market. The State Board of Equalization also recently announced that,for the first time in history since the passage of Proposition 13, a negative inflation factor will be applied to assessed values. A November 30, 2009 news release announced a negative inflation factor of -0.237 percent, based on the performance of the California Consumer Price Index from October 2008 to October 2009.86 The news release stated that for homeowners, "The decline in taxes owed will be about $2.60 per $100,000 in assessed value." Applied citywide, countywide, and statewide, a negative growth factor in assessed value could have serious financial consequences on local and state governments. Although the impact at the local and state levels have yet to be quantified, it is reasonable to assume that a negative inflation factor in 2010 will further cripple the City's ability to adequately fund capital improvement projects throughout Merged Area A. A heavy reliance on Agency financial support by the City is expected to continue during the next several years. DOWNTOWN CORE VISION/ACTION PLAN A potential commercial real estate crisis during the next two years would delay the Agency's ability to partner with private investors to implement projects and programs in accordance with the Downtown Core Vision/Action Plan. The City's budget challenges also greatly hurt its ability to fund capital improvement projects in the Downtown Core needed to make way for major projects and programs under the Downtown Core Vision/Action Plan. As stated before, major progress toward implementing the Downtown Core Vision/Action Plan cannot reasonably be expected to be made either by private enterprise or City action ""UCLA Anderson Forecast:Worst National Recession in Seven Years Likely Ended this Quarter,but Remains Impacltul for the Rest of the Demde." September 16,2009. UCLA<hfp://uclafomwst.com/contents/archive/2009/media_91609—i.asp>. "Kirby, Mike. "Commercial Real Estate: Distress and Opportunity." PoverPoint Presentation by Green Street Advisors at UCLA Anderson Economic Forecast Conference, June 16,2009. B°California Stale Board of Equalization,"Negative Inflation Spurs First Time Property Tax Reductions,"November 30,2009. O RSG 124 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council alone, without significant Agency involvement and investment. Even then, it may be another five years before private developers and the lending industry are confident enough in the market to forge new partnerships with the Agency in the Downtown Core. With Meadowbrook/Central City scheduled to expire in 2016, and Central City North scheduled to expire in 2019, very little time would be left to effectively carry out redevelopment activities within those Project Areas to implement the Downtown Core Vision/Action Plan. The 10-year extension of those two Project Areas, and the ability of Agency to leverage tax increment from other areas within Merged Area A, would significantly increase the Agency's likelihood for successful implementation of major projects like a new Civic Center Plaza, a new hotel, Main Street retail, Court Street Square, and the Theater District. FISCAL STABILITY The continuing loss of property and sales tax revenues to the City will continue the City's reliance on tax increment funds in the near-term to support capital improvement projects in Merged Area A. This is the primary reason for the addition of new capital projects to the Merged Plan. With the addition of those projects, the Agency estimates $250 million in total cost for projects and programs through the life of the Merged Plan. It is important to note, however, that the Agency's tax increment revenue streams are also impacted by the reduction in assessed values. With little new construction being completed in Merged Area A to generate additional tax increment, certain Project Areas that were already in fiscal despair would essentially become obsolete without the Agency's ability to leverage funds between merged Project Areas for the greater good of Merged Area A as a whole. The proposed increases in the Agency's tax increment and bonded indebtedness caps are equally important. The increased caps will allow the Agency to add capital projects to the Merged Plan, create financial stability across the Project Areas, leverage additional future funds to implement projects and programs, and eliminate remaining blight within Merged Area A. O RSG -- - - 125 RMethod of Financing SECTION C: PRELIMINARY ASSESSMENT OF THE PROPOSED METHOD OF FINANCING Sections 33333.11 and 33352 of the CRL require the Report to include information on the proposed method of financing, including information on the economic feasibility of the project. This description shall also identify sources and amounts of moneys other than tax increment revenues that are available to finance projects or programs. Additionally, the description shall identify the reasons that the remaining blight cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without the use of the tax increment revenues available to an agency because of the proposed amendment. For the two 10-year extension Project Areas, CCN and M/CC, the description shall include the amount of tax increment revenues that is projected to be generated during the period of the extension, including amounts projected to be deposited into the Housing Fund and amounts to be paid to affected taxing entities. The Merger and Amendments would address the needs of the Agency by making the following changes: • Merge the CCN, SEIP, Tri-City, South Valle and CC Merged Project Areas (merged as Merged Area A), • Increase and set a single cumulative limit on the amount of tax increment revenues that may be received from Merged Area A, • Set a single cumulative bonded indebtedness limit for the Merged Area A,and • Extend the effectiveness and period to receive tax increment revenue for the CCN and M/CC Project Areas by an additional 10 years. As described in the Introduction of this Report, the Agency's financial resources are constrained and insufficient to address remaining blight in Merged Area A. Section A of this Report details significant blight remaining within Merged Area A requiring the Agency's assistance to alleviate. Section B includes a list of projects needed to continue to address and correct remaining conditions of blight in Merged Area A. The estimated financial resources to fund blight eliminating projects and programs in Merged Area A totals $250 million, prior to financing costs. The Merger and Amendments to the Project Areas will provide the Agency greater financial flexibility to implement redevelopment projects and programs. PROPOSED METHOD OF CONTINUING TO FINANCE REDEVELOPMENT The Merger and Amendments do not propose any changes to the existing financing methods available to the Agency. The Agency intends to continue to finance redevelopment of Merged Area A with the following resources(not in order of priority): 1. Tax increment revenue; 2. Bonded debt; 3. Proceeds from the lease or sale of Agency-owned property; 4. Participation in development; 5. Financial assistance from the City, County, State of California, and/or Federal Government; and 6. Any other legally available source. The financing sources are described in more detail in the following discussion. PROPERTY TAX INCREMENT �. The Agency currently receives tax increment revenue from all Project Areas within Merged Area A. The Agency will continue to use property tax increment revenue as provided for in Section 33670 of the CRL, and ORSG 1 2s SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council as authorized in the Merged Plan, to underwrite project costs. Tax increment revenue will fund ongoing redevelopment activities and to pay indebtedness incurred by the Agency. Indebtedness includes principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. Tax increment revenues will be allocated to address an array of Agency obligations. As required by Section 33334.2 of the CRL, 20 percent of tax increment revenue is deposited into the Agency's Housing Fund for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing. However, Housing Fund deposits will increase to 30 percent if a project area is amended to extend the time limit on the effectiveness of its redevelopment plan and the collection of tax increment by 10 years. As such, the Agency will be required to deposit 30 percent of the tax increment revenue generated in the CCN and M/CC Project Areas into the Housing Fund upon adoption of the Merged Plan. The net tax increment revenue, after setting aside deposits into the Housing Fund, will be used to pay for Agency obligations to taxing entities and others, debt service costs, and other program expenditures such as infrastructure,capital facilities,economic development, and blight removal programs. BONDED DEBT Under the Merged Plan, the Agency would continue to have the capacity to issue bonds and/or notes for any of its corporate purposes, payable in whole or in part from tax increment revenue. Any bonds issued by the Agency are the responsibility of the Agency, and neither the City nor its taxpayers are liable for debt service on the bonds. Redevelopment bonds are typically issued based on current cash flows, without regard to potential increase in revenue that may occur subsequent to the issuance. LEASE OR SALE OF AGENCY-OWNED PROPERTY The Agency may sell, lease, or otherwise encumber its property holdings to pay the costs of project �! implementation. PARTICIPATION IN DEVELOPMENT If the Agency enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay project implementation costs. FINANCIAL ASSISTANCE FROM THE CITY, COUNTY, STATE, AND/OR FEDERAL GOVERNMENT The Agency may obtain loans and advances from the City for planning, construction, and operating capital. The City may also defer payments on Agency loans for land purchases, benefiting the Agency's cash flow. Such assistance may be employed to meet short-term cash flow needs. However, as described earlier in the Report, the City has identified a General Fund budget shortfall of $4.9 million for fiscal year 2009-10. The City is struggling to sufficiently fund necessary services and has inadequate resources to provide assistance to the Agency at this time. As available, other funds such as state-apportioned road funds, state housing and infrastructure bond funds, state and federal transportation funds, will be appropriately used in conjunction with Agency funds for costs of project implementation. The State of California's budget crisis continues to worsen as repercussions from the nation's economic recession persists. As of January 12, 2010, the California Legislative Analyst's Office reports that the 2010-11 Governor's Budget is proposing major corrective budget actions to address a projected $18.9 billion budget gap.m es The 2010-11 Budget:Overview of the Govemor's Budget <http://.,Iao,c ,,ov/report s/2010/bud/budget_oveMew/bud_ove"iew 011110,asp", ORSG 12� SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Although both City and State financial assistance are uncertain options for the Agency in the near future due to current financial challenges, the Agency will continue to seek opportunities to obtain assistance as the economy shows signs of recovery. OTHER AVAILABLE SOURCES Any other loans, grants, or financial assistance from the federal government, or any other public or private source will continue to be utilized, as available and appropriate. The Agency will also consider use of the powers provided by the CRL to provide construction and other funds for appropriate projects. Where feasible and appropriate, the Agency may use assessment district and/or Mello-Roos bond financing to pay for the costs of public infrastructure,facilities, and operations. MERGER AND AMENDMENTS Continued tax increment revenue, and the other financing methods described above, are necessary to support blight eliminating projects and programs in Merged Area A. Given current economic conditions and local and state budgetary constraints, the Agency's ability to eliminate remaining blight in Merged Area A, through the projects and programs described in Section B, is heavily reliant on its financing and bonding capacity from tax increment. The financial analysis contained in this Section of the Report concludes that, in the absence of the Merger and Amendments, the Agency does not currently have sufficient financial rapacity to adequately fund the necessary blight eliminating projects in Merged Area A. The Merger and Amendments provide both the necessary financial capacity to eliminate blight and the additional time required in the CCN and M/CC Project Areas to implement the Downtown Core Vision/Action Plan, as described in Section B of this Report. The following discussion describes the current constraints to tax increment revenue generated in the Merged Area A Project Areas and the effect of the proposed Merger and Amendments. CURRENT MERGED AREA A TIME AND FINANCIAL LIMITS Consistent with the CRL, the current Redevelopment Plans for the Merged Area A Project Areas contain time and financial limitations that affect the Agency's ability to use and collect tax increment revenue. Table C-1 presents the current Merged Area A limits. Current Project Areas Time&Financial Limitations Table a1 San Bernardino Merged Area A Last a e to Last Date to Incur Receive Tax Financial Limit on Project Area Effectiveneasof Plan Bonded Debt Limit Indebtedness' Increment Receivino Tax Increment 1.75 X Annual Maximum Central City North August 6,2016 $40,000000 Eliminated August6.2026 Debt Service 1 75 X Annual Maximum South East t,ouxual Park June 21.2019 560,1X10.000 Eliminated June 21,2029 Debt Service Tri-C4y June 20,2026 $18,000,000 Eliminated June 20,2036 $50,000,000 1.75 X Annual Maximum South Valle July 9.M26 $14,000,000 Eliminated July 9,2036 Debt Service Central City Merged' 1.75 X Annual Maximum Meadowbrookcaneal City May 3,2019 $50.000,000 Eliminated May 3,2029 Debt Service 1.75 X Annual Maximum Central City South May 3,2019 530,000,000 Eliminated May 3,2029 Debt Service 1.75 X Annual Maximum Central City East May 3,2019 $25,000,000 Eliminated May 3,2029 Debt Service Notes: 1 Limitations are as Iind letl for eaob constituent Project Area 2.The limits to Incur debt ware eliminated Pursuers to 33333.0(eX2X8)rents rig the ariacbnent of S8211(Chapter 741.Statutes of 2001).The limit corresponds to the plan e9egivenass limi6 of the Project Area L° Swnw:Ro'G3umm Clwrs-San Bemauhno EDA ORSG 1za SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Time Limit to Incur Debt: As shown in Table C-1, the Redevelopment Plans for the CCN, SEIP, Tri-City, and South Valle Project Areas were amended in 2003 to eliminate the time limit to incur indebtedness pursuant to Senate Bill 211 (Chapter 741, Statutes of 2001). The Redevelopment Plans for the Central City Merged Project Areas were amended in 2010 eliminate the time limits to incur debt. The time limit to incur debt in Merged Area A corresponds with the Redevelopment Plan effectiveness of each Project Area. Time Limit to Collect Tax Increment Revenue: Table C-1 shows the current time limits to collect tax increment and repay debt for each of the Project Areas within Merged Area A. The Merger and Amendments would extend the Agency's time limit to collect tax increment and repay debt for the CCN and M/CC Project Areas by 10 years(as discussed later in this Section).The time limit to collect tax increment for SEIP,Td-City, South Valle, CCE and CCS Project Areas would remain unchanged. Following adoption of the proposed Merged Plan, the Agency may collect tax increment revenue from CCS, CCE and SEIP Project Areas until 2029;from the CCN, South Valle and Td-City Project Areas until 2036; and from the M/CC Project Area until 2039. Financial Limit on Tax Increment: The current limit on the amount of tax increment that may be collected in each Project Area, excluding the Tri-City Project Area, is equal to 1.75 times the Annual Maximum Debt Service. This limit is difficult to track and is independent of project costs or projected tax increment receipt. The Tri-City Project Area currently has a tax increment limitation of$60 million, of which approximately$43.7 million has been collected by the Agency to date. The Td-City Project Area is anticipated to reach its tax increment limit in fiscal year 2010-11 without the Merger and Amendments. Additionally, to comply with the Bond Indenture, all increment from the Tri-City Project Area is currently being diverted to the Trustee to ensure payment of debt service over the tens of the bonds. The Merger and Amendments would establish a more transparent and measurable cumulative tax increment limit for the entire Merged Area A, and ensure that blight eliminating redevelopment projects in the Tri-City Project Area can continue to be adequately financed through the Merger and increased tax increment limit. Financial Limit on the Amount of Bonded Indebtedness Outstandinc at One Time: As depicted in Table C-1, ... each Project Area has a separate bonded indebtedness limit. Separate bonded indebtedness limits impede the Agency's ability to effectively issue and track future bonds in Merged Area A. Additionally, the cumulative bonded indebtedness limit, based on the current amounts established in each Project Area, totals $237 million and impairs the Agency's ability to issue adequate bonds to fund future projects. The Merger and Amendments would establish a single increased cumulative bonded indebtedness limit for the entire Merged Area A and ensure that the Agency has sufficient bonding capacity through the life of Merged Area A to finance the necessary blight eliminating projects. TAX INCREMENT REVENUE PROJECTIONS A financial analysis of the Merger and Amendments inclusive of tax increment revenue projections of Merged Area A was completed using the fiscal year 2009-10 Equalized Assessment Roll. The analysis compares the amount of potential tax increment generated in Merged Area A with and without the time and financial limit changes proposed by the Merger and Amendments. Table C-3 presents a preliminary forecast of Merged Area A tax increment revenue generated under the existing time and financial limits. Table C-4 presents a preliminary forecast under the proposed new limits of the Merger and Amendments. The forecasts are based on the following assumptions: 1. Assessed Value Growth Rates: As a baseline, historical assessed valuation growth rates (since inception)of each Project Area were analyzed to forecast future growth rates in Merged Area A. The tax increment projections assume a 12 percent annual growth rate through the tens each Project Area may collect tax increment to repay debt. The growth rate is based on the maximum average growth rate in Merged Area A since inception. This approach provides a realistic and customized approach to forecasting future tax increment revenue and bonded indebtedness limits in Merged Area A. Table C-2 shows the historic assessed valuation growth rate and fiscal year 2009-10 assessed values in each Project Area. O RSG 129 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Merged Area A Historical Growth Rates Table C-2 San Bernardino Merged Area A 2004-2009 Inception-2009 5-Year Historical Project Area Average Average CCN 1% 4% SEIP 9% 12% Tri-City 18% 12% South Valle 6% 7% CC Projects 9% 4% Average 10% 9% Range 1% - 18% 4%- 12% 2. Low and Moderate Income Housing Fund Set-Aside Revenues: As required by Section 33334.2 of the CRL, the Agency deposits at least 20 percent of Merged Area A tax increment revenue in the Agency's Housing Fund for the purposes of increasing, improving, and preserving the community's supply of affordable housing. Upon adoption of 10-year extensions for the CCN and M/CC Project Areas,the Agency's Housing Fund deposits for those Project Areas will increase to 30 percent, beginning in fiscal year 2010-1 1 ss 3. Pass-through Payments: Pass-through payments to taxing entities amount to approximately 30 percent of projected gross Merged Area A tax increment revenue. The actual amount of pass- through payments vary based on the amount of tax increment revenue collected each year. The Agency shares tax increment revenue with affected taxing entities based on two types of pass- through payments, negotiated payments and statutory payments. Two of the seven Project Areas proposed to be merged have existing negotiated tax-sharing agreements with affected taxing entities. The Tri-City and South Valle Project Areas are subject to negotiated agreements. For the Tri-City Project Area, the Agency entered into tax sharing agreements with three taxing entities: Colton School District, Redlands Unified School District, and San Bernardino Municipal Water District. For the South Valle Project Area, the Agency has a single tax-sharing agreement with San Bernardino Municipal Water District. The Merger and Amendments would have no effect on these existing agreements and the taxing entities would continue to receive their agreed-upon shares. In the remaining five Project Areas of Merged Area A, the Agency remits payments to affecting taxing entities in accordance with statutory formulas set forth in Section 33606.7 of the CRL ("Statutory Payments"), without negotiated payment agreements. The requirement for these Statutory Payments were triggered by the SIB 211 amendments rescinding the time limit to incur debt for these Project Areas. Statutory Payments will continue for the duration of the timeframe to collect tax increment revenue for each Project Area. The statutory formula is based on a tiered system, which is reflected in the lax increment projections. Upon adoption of the Merger and Amendments, taxing entities with written agreements for negotiated payments in the Tri-City and South Valle Project Areas will continue to receive payments under the terms of those agreements, and will not receive statutory payments. 68 Assuming adoption of the Merged Plan including the 10 year extension is adopted in fiscal year 2010-11. ORSG 130 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Based on the assumptions previously described, Agency tax increment revenue projections for each Project Area have been forecasted and attached to this Report as Appendix 5. After Housing Fund set-aside deposits and pass-through payments to affected taxing entities are made, net tax increment revenue will be available for existing and new debt service obligations, eligible redevelopment projects such as infrastructure improvements, development incentives, and other non-housing uses. MERGED AREA A MERGER As previously discussed, the Agency's financial capacity is constrained and the merger of the seven Project Areas, proposed as Merged Area A, would allow the Agency to cover immediate obligations in the Project Areas. The Merger and Amendments further allow the Agency to increase revenue available to pay current debt service obligations and fund blight eliminating projects. The merger would also allow the Agency to coordinate a more comprehensive approach to alleviating blight by implementing programs across Project Areas and reducing overhead costs. To establish that the proposed merger of the seven Project Areas would be of substantial benefit to the community and the elimination of blighted areas, summaries have been prepared for each Project Area comparing tax increment projections based upon current time and financial limitations, and tax increment projections based upon the Merger and Amendments. The summaries depicted in Tables C-3 and C-4 include county administrative fees, Agency operation and administration costs, bond debt service payments, pass-through payments, and other existing outstanding obligations of each Project Area. Table C-3 presents the tax increment revenue available to the Agency if the Merger and Amendments were not adopted and is reflective of the Agency's current financial capacity in the seven Project Areas. As shown in Table C-3, the Agency currently faces a deficit of approximately $1.5 million and $19.4 million in the CCN and Tri-City Project Areas, respectively. Without the Merger and Amendments, the Agency will be unable to pay its current outstanding obligations due from the CCN and Tri-City Project Areas. In addition, no funding would be available for future projects and programs necessary to eliminate blighting conditions remaining in these Project Areas. Tax increment revenue generated in the other Project Areas is therefore necessary to eliminate blight and pay existing obligations in the CCN and Tri-City Project Areas. Additionally, the CCN, Tri- `- City, and Central City Merged Project Areas other outstanding obligations total more than $34.5 million. Merging the Project Areas will allow the Agency to decrease the amount of tax increment revenue needed to pay other outstanding obligations within Merged Area A. O R S G--- --- 131 SAN BERNARDINO MERGED AREA A MERGER Ik AMENDMENTS Report to the Mayor and Common Council Projected Tax Increment Revenue by Project Area under Existing Redevelopment Plan Limits Table C-3 San Bernardino Merged Area A CCN SEIP Trl-Clbr South Valle CC Merged Total Total Gross Tax Increment Revenue 44,236,374 265.539,387 6,609,247 180,932,939 172,372,987 669,690,933 Grovvh Rate Assumptions 12.0% 12.0% 12.0% 12.0% 12.0% Less: Housing Set Aside Obligations' 8,847.275 53,107,877 1,321,849 36,186,588 38,684,633 138,148,222 County Administrative Fees 110,591 663,848 16,523 452,332 430,932 1,674,227 Operation and Administration 2,211,819 13,276,969 330,462 9,046,647 8,618,649 33,484,547 Gross Non Housing Revenue 35,278,508 211,767,661 5,270.874 144,294,019 133,257,422 529,868,484 Obligations Bond Debt Senice4 9,074,531 42,659,174 19,848,103 9,948,260 26,178,520 107,708,588 Pass-through Payments 9,907,496 63,464,447 4,953.660 76,321,353 44,469,860 199,016,817 Other Outstanding Obligations' 17,823,849 31,338 - 24,310 17,556,216 35,435,713 Net Redevelopment Funds 1,527,367 105,612,702 19,430,889 58.000,095 45,052,826 187,707,366 Notes: 1 Projections reflect the existing time and 0nandal limits for each project area 2 Gross Tax Increment Revenue and associated returners based on RSG Projections(Coloben 2009) 3 20%of Grass Ti revenues are deposited u, 4 Debt Service based on Agency's bond debt service schedule 5 Includes amounts due to other Proied area's wiMin Me Agency incluefing the Housing Fund Table C-4 presents tax increment revenue generated under the terms of the proposed Merger and Amendments. The proposed merger will enable the Agency to use resources from one Project Area for the benefit of another Project Area and the entire Merged Area A. As shown in Table C-4, the Agency will also be able to use tax increment from other Project Areas to cover deficits in the CCN and Tri-City Project Areas. The Agency will also be able to reduce its other outstanding obligations by$19.3 million. Merging the Project Areas increases the Agency's financial capacity and will benefit the community by allowing sufficient revenue to address the blighting conditions described in Section A of this Report. O RSG - - _ , 132 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Projected Tax Increment Revenue by Protect Area under Proposed Merger&Amendments Table C•4 San Bernardino Merged Area A CCN SEIP Trl4;' Bohn VAIN CC Ne etl Toial Merged Area As Total Gross Tax Increment Revenue 161,678,398 265,539.387 500,6691880 180,932,939 258,929,573 1.367,6W,177 1,367,6W,177 Grool Rate Assumptions 12.0% 12.0% 120% 12.0% 12.0% Less: Housing Set Aside Obliga9onsa 48.278,207 53,107,877 100,133,976 36,186,588 63,180.946 300,887,594 30(1,887,594 County Administri lve Fees 403,946 663,848 1,251.675 452.332 647,324 3,419,125 3,419.125 Operation and Administration 8,078,920 13,276,969 25,033,494 9.046.647 12.946,479 68,382,09 68,382.09 Gross Non Housing Revenue 112,896,245 211767,661 399284,229 144294.019 195,101,303 1,063,343.40 1,063.343,40 Obligations Bond Debt Sermi ee 9,074,531 42,659,174 19,848,103 9.948,260 26,178,520 107708,588 101 Pass-through Payments 49,179,035 63,468447 204,885,288 76,321.353 70.921,798 464,711,922 199,016,817 Other Outstanding 0511gations' 17,823,849 31,338 - 24.310 17,50,216 35,435713 16,092,498 Net Redevelopment Funds 36.818830 105,612,702 174,550,838 58.000,095 80,044770 455,427,235 740,525,556 Notes: 1 Gross Tax Increment Revenue and aseconted deluCtiNs beast on RoS Proje dons(0c1Mer,2508) 220%&Grass TIrevenueseredepositedin Me Agency%HousiMFund"mGCS,CCE, SEIP,Tt hr and Soon Valle project Nee.30%dGmss T revenues are deposited Into Me Housing,Fund Mom CCN ant the MeedowtbrookJ CC Propel Asia 3 DMA Service based on Agency's bind cant serAce schedule 4 Includes amounts due to other prJoh,area's wiMn Me Agent,as well as 5 Mttged Area A propcAons assumes all amendments descnbed In this sockm are adopted includi,Ig eliminating Me tax Increment limp for TnLip Product Area Pursuant to the CRL, mergers of project areas are desirable as a matter of public policy if they result in substantial benefit to the public and if they contribute to the revitalization of blighted areas through increased economic vitality of those areas.6i The Merger and Amendments provide a comprehensive approach to meeting the Agency's financial needs. Merging the seven Project Areas into Merged Area A addresses the potential challenges of the Agency to alleviate both near and long term rash flow constraints in struggling Project Areas by providing funding from economically healthy Projects Areas. By merging the Project Areas, the Agency will be able to revitalize blighted areas through increased economic vitality of Merged Area A. PROPOSED CUMULATIVE TAX INCREMENT LIMIT The Project Areas within Merged Area A have separate limits on the amount of tax increment that may be collected in each area. The Merger and Amendments are proposing to set a single cumulative tax increment limit for Merged Area A. The Merger and Amendments will allow Agency funds to be cross collateralized between the Project Areas and a single cumulative limit on the amount of tax increment revenue received by the Agency will allow effective administration of the redevelopment program in Merged Area A. As depicted in Table C-1, the CCN, SEIP, South Valle, and Central City Merged Project Areas are subject to an annual cap of 1.75 times the maximum annual debt service paid by each Project Area. This means that the Agency's ability to collect tax increment is directly proportional to its annual outstanding debt service obligations and varies from year to year. Tax increment limits set in this manner are very difficult to track. A single cumulative tax increment limit ensures taxing agencies are receiving a fair share of property tax revenue and improves Agency transparency. The Tri-City Project Area currently has a tax increment limitation of $60 million, of which approximately $43.7 million has been collected by the Agency to date. Without the Merger and Amendments, the Tri-City Project Area is anticipated to reach its tax increment limit in fiscal year 2010-11 and will significantly affect the Agency's ability to pay existing obligations. The proposed tax increment limit is based on the tax increment projections presented in Table C-3 and future project cost estimates. Estimated project costs are based upon the projects and programs, detailed in Section B of this Report, that are necessary to eliminate remaining blight in Merged Area A. The proposed 67 CRL Section 33485 Q RSG 133 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council tax increment limit assumes that 100 percent of the project cost will be financed through bonds and assumes that the principal and interest payments are approximately three times the project cost. Table C-5 shows the estimated financial need of the Agency for Merged Area A and the proposed tax increment limit. The Agency is proposing a single cumulative tax increment limit of$2.5 billion that accounts for actual past expenditures and projected costs for future redevelopment activities in Merged Area A. To date the Agency has collected an estimated $300.7 million of tax increment revenue within Merged Area A. An additional $1.98 billion, along with $198.1 million of contingency funds, are needed to implement future redevelopment activities in Merged Area A. Proposed Tax Increment Limit: Merged Area A Table C-5 San Bernardino Merged Area A Tax Increment Collected to Date 300,718,764 Projected Future Tax Increment Revenue' 1,367,650,177 Tax Increment Needed for Future Obligations: 1,730,605,451 Housing Fund Deposits 300,887,594 County Administrative Fees 3,419,125 Pass-through Payments 464,771,922 Existin Bond Debt Service 107,708,588 Tax Increment Needed for Current Obligations: 853,818,222 �.. Future Bond Debt Service 750,000,000 Operations and Administration 68,382,509 Outstanding Obligations 35,435,713 Funds Needed for Redevelopment Projects' 250,000,000 Total Tax Increment Required 1,980,605,451 Agency Reserves for Contingencies(10%) 198,060,545 Proposed Tax Increment Limit 2,500,000,000 Notes: 1 Total gross tax increment revenue collected from CCN,SEIP,Tri-City,South Valle, CC Projects from the adoption of each Project Area redevelopment plan 2 Assumes tax increment revenue after the Merger and Amendment is adopted 3 RSG estimates$250 million will be needed to fund future redevelopment projects,these projects are currently anticipated to be a hundred percent funded through bonds Source:Agency Tax Increment Receipts and RSG Projections 2009 PROPOSED CUMULATIVE BONDED INDEBTEDNESS LIMIT As depicted in Table C-1, each Project Area has a separate limitation on the amount of bonded indebtedness that may be outstanding at any one time. Separate limits on outstanding bonded indebtedness hinder the Agency's ability to administer and issue future bonds in Merged Area A. The Agency is therefore proposing to establish a single cumulative limit on the amount of bonded indebtedness that may be outstanding in Merged (P RSG 134 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council Area A at any given time. The existing cumulative bonded indebtedness limit for the Project Areas that comprise the proposed Merged Area A totals $237 million. The Agency estimates that future projects and programs in Merged Area A will total $250 million. Therefore, increasing the bonded indebtedness limit will ensure that the limit allows for maximum future bonding capacity to support projects and programs. Table C-6 presents the proposed bonded indebtedness limit that may be outstanding at any one time and accounts for existing and future principal bond obligations. The outstanding principal debt shown includes principal from the Agency's Housing Fund Bonds, and assumes that 36 percent of the principal payment is derived from Merged Area A Project Areas. The proposed increased, cumulative Merged Area A bonded indebtedness limit totals of$327 million. Proposed Bonded Indebtedness Limit: Merged Area A Table C-6 San Bernardino Merged Area A Outstanding Principal Debt 77,037,103 Future Principal Debt' 250,000,000 Proposed Bonded Indebtedness Limit 327,000,000 Notes: 1 Assumes that 100 percent of future project cost will be financed through bonds. Source:Agency Debt Service Schedule TEN YEAR EXTENSIONS FOR CENTRAL CITY NORTH AND MEADOWBROOK/ CENTRAL CITY PROJECT AREAS The Merger and Amendments propose to extend the Redevelopment Plan effectiveness and time limit to receive tax increment from the CCN and M1CC Project Areas by 10 years. CRL Section 33333.11 requires a summary of the amount of tax increment revenue, including Housing Fund deposits and pass-through payments,that will be generated during the 10 year extension period in each Project Area. Table C-7 shows the fiscal implication of increasing the time limit for the CCN Project Area by 10 years. During the 10 year extension period, the Agency will receive additional tax increment revenue in the amount of$117.3 million from the CCN Project Area. Of this amount, approximately $35.2 million will be deposited into the Housing Fund and $39.3 million will be paid to affected taxing entities. O RSG 135 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council CCN: Summary of Additional Revenue from 10 Year Extension Table C-7 San Bernardino Merged Area A FY 2009-10 through FY 2025-26 through Total FY 2024-25 FY 203435 Gross Tax Increment Revenue 44,236,374 117,342,024 161,578,398 Housing Fund Deposits' (13,075,599) (35,202,607) (48,278,207) Administrative Fees (110,591) (293,355) (403,946) Non Housing Revenue 31,050,184 81,846,062 112,896,245 Pass-through Payments (9,907,496) (39,271,539) (49,179,035) Bond Debt Service (9,074,531) 0 (9,074,531) Other Obligations (17,823,849) 0 (17,823,849) Net Redevelopment Revenues (5,755,692) 42,574,522 36,818,830 Notes: 1 Deposits to the Housing Fund are 30%ofgross taxincrement beginning FY2010-11 Table C-8 shows the fiscal implication of increasing the time limit for the M/CC Project Area by 10 years. During the 10 year extension period, the Agency will receive additional tax increment revenue in the amount of$86.6 million from the M/CC Project Area. Of this amount, approximately$26.0 million will be deposited into the Housing Fund and $27.8 million will be paid to affected taxing entities. M/CC: Summary of Additional Revenue from 10 Year Extension Table C-8 San Bernardino Merged Area A FY 2009.10 through FY 2021.22 through Total FY 2020.21 FY 2030.31 Gross Tax Increment Revenue 29,956,350 86,556,587 116,512,937 Housing Fund Deposits' (8,730,643) (25,966,976) (34,697,619) Administrative Fees (74,891) (216,391) (291,282) Non Housing Revenue 21,150,817 60,373,219 81,524,036 Pass-through Payments (5,582,182) (27,790,427) (33,372,609) Net Redevelopment Revenues 15,568,634 32,582,792 48,151,427 Notes: 1 Deposits to the Housing Fund are 30%of gross tax increment beginning FY2010-11 2 Net Redevelopment Revenues does not account for obligations which are shared by CC Merged Projects, including bond debt service. O RSG 136 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council REASONS FOR THE PROVISION OF TAX INCREMENT Tax increment financing will continue to be an essential component of a successful redevelopment program in the Merged Area A. As demonstrated in Section A of this Report, many blighting conditions are attributed to a lack of financial incentives for new development and property rehabilitation. Lack of property maintenance and reinvestment has resulted in physical decay within Merged Area A that cannot be remediated without Agency assistance. While there are other means to raise public funds without tax increment financing, these techniques would ultimately result in higher taxes or increased development costs, both of which are counterproductive to resolving the unique issues in Merged Area A. As earlier described, the recent economic environment and the financial challenges of the City and State severely limit the potential for the Agency to receive assistance funded from governmental sources. The Agency's main source of revenue for remediating blight in the proposed Merged Area A is tax increment revenue. Upon adoption of the Merger and Amendments, an estimated $740.5 million in net tax increment revenue will be available to the Agency to fund blight eliminating programs and projects. The receipt of tax increment from the Merged Area A is essential to eliminating the remaining blight in each Merged Area as outlined in Section A of this Report. The provision of tax increment revenue must be included in the Merged Plan because other sources are not available or are insufficient to finance the costs of redeveloping Merged Area A. Although the Agency will attempt to use other available financing programs, these may not be viable for the type and amount of improvements required. For example, certain public improvements could be financed by creating an assessment district, but given the relatively low income levels of many residents in Merged Area A and limited rental income for property owners, it is unlikely that the two-thirds vote needed under Proposition 218 to effectuate an assessment district would be supported. Additionally, assessment and community facility districts impose a financial burden that area businesses and potential developers may be unable to bear. As indicated by the continued presence of blighting conditions, which can be found throughout the Merged Area A, some property owners do not have the resources to maintain their properties, much less rehabilitate them. Therefore, it cannot be reasonably expected that private enterprise acting alone would have the means to accomplish redevelopment of Merged Area A. When adverse conditions are not addressed, the resulting physical and financial impacts imposed by these conditions will exacerbate existing blighting conditions. Tax increment financing provides a dedicated source of revenue for the Agency to invest in housing and other redevelopment programs, without burdening property owners or residents with additional costs that they cannot afford. Utilization of tax increment financing will provide the resources to develop a consistent and direct approach to activities and programs needed to eliminate blight, provide for the improvement of infrastructure, and aid in the expansion of Merged Area A economic base. The Agency does not currently have, nor expects to have, the available financial resources to fund the magnitude of improvements necessary to reverse the adverse conditions present in Merged Area A without the Merger and Amendments. OPSG _ 137 0 Amended Implementation Plan SECTION D: AMENDMENT TO THE AGENCY'S IMPLEMENTATION PLAN CRL Sections 33333.11 and 33352 require that the Agency prepare an amendment to the Agency's Implementation Plan pursuant to Section 33490 of the CRL to incorporate any changes resulting from the Merger and Amendments. The Agency adopted the 2009/10 through 2013/14 Implementation Plan and Housing Compliance Component ("Implementation Plan") on December 7, 2009 by Resolutions No. CDC/2009-65 and CDC/2009-66. The Implementation Plan includes Merged Area A and the proposed Merger and Amendments will not change existing programs and projects. The Merger and Amendments will impact the Agency's current Implementation Plan because the fiscal impact and inclusionary housing production requirements of the 10 year extensions in the CCN and M/CC Project Areas. An Amended Implementation Plan detailing amended revenue and program expenditures and inclusionary housing production requirements will be presented at the public hearing for the Merger and Amendments. The Agency's Amended Implementation Plan is included as Appendix 4. O RSG _ _ __ 138 © Neighborhood Impact SECTION E: NEIGHBORHOOD IMPACT OVERVIEW CRL Sections 33333.11(e)(9), related to the 10-year extension in the CCN and M/CC Project Areas, and 33352(m)require that this Report contain a neighborhood impact report that discusses the impact the Merged Plan will have on low and moderate income persons or families in the following areas: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. This Section includes a discussion of all of the Project Areas that comprise Merged Area A. Additional issues that the neighborhood impact report must address include: the number of low or moderate- income dwelling units to be removed or destroyed; the number of low or moderate income persons or families expected to be displaced; the general location of housing to be rehabilitated, developed or constructed; the number of dwelling units planned for construction or rehabilitation to house persons and families of low or moderate income (other than replacement housing); the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting the Merged Plan's relocation, rehabilitation, and replacement housing objectives. Environmental Impact Reports ("EIRs") generally serve as a basis for the information required by this neighborhood impact report. The Agency must complete an EIR as a part of the Merger and Amendments process. Typically, the information contained in this section is prepared for the Report to the Common Council, and is accompanied by the EIR for the project. However, in this case, this section is being prepared in advance of the EIR. Therefore, data resources include the Initial Study8'and other research completed as rJ1 the EIR is being prepared. A large portion of the environmental data has been obtained from the EIR the City prepared in 2005 for its General Plan Update.69 As all proposed projects within Merged Area A must conform to the City's General Plan, its EIR provides a reasonable basis for the following discussion. Finally, information on affordable housing production, replacement, and related activities was obtained from the Agency's Ten Year Housing Compliance Plan, adopted in 2009. IMPACT ON RESIDENTS IN MERGED AREA A AND SURROUNDING AREA The Merger and Amendments will not alter the boundaries of existing Project Areas, only merge them into a single administrative project area. The proposed Merger and Amendment would generally provide for additional funds to implement projects which have been or will be evaluated for purposes of CEQA(California Environmental Quality Act, Public Resources Code Sections 21000 at seq.), within Merged Area A. Any additional programs and projects will be evaluated through the necessary environmental processes, including the EIR for the Merged Plan,and future project-specific evaluations as needed per CEQA. RELOCATION Merged Area A contains approximately 2,459 residential households, with approximately 63% of the households occupied by low- or moderate-income persons or families. At this time, no foreseeable projects have been proposed for Merged Area A that would involve displacement of low- and moderate-income residents. However, should displacement occur in the future, eligible displaced residents will be offered relocation benefits as required by law. Additionally, if future revitalization projects involve the displacement °B City of San Bernardino.Initial Study for the San Bernardino Redevelopment Proiect Area Mercer—Area A RBF Consulting,November 11,2000. 60 City of San Bernardino.San Bernardino General Plan Update and Associated Si Plans Environmental Impact Report The .^ Planning Center,September 30,20W O RSG 139 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council and relocation of low- and moderate-income residents, the displacement will be mitigated by any applicable relocation assistance requirements (including financial payments and advisory assistance), and replacement housing plan requirements of State law. In summary, residents will not be displaced due to an Agency assisted development unless and until there are suitable relocation facilities available for occupancy at rents or costs comparable to those paid at the time of displacement, and/or affordable (pursuant to the CRL) to such residents. Prior to commencing projects that may displace low/moderate income persons and households, the Agency will prepare a replacement housing plan that complies with Section 33413(a)of the CRL. The Agency will assist residents in finding housing that is decent, safe and sanitary and within their financial means, in reasonably convenient locations and otherwise suitable to their needs. Any displacement which occurs as a result of Agency redevelopment activities will be mitigated by relocation assistance including financial payments, advisory assistance, and other assistance identified in the project-specific replacement housing plans as required by State Law relating to Agency assisted developments. Additionally, the Agency will offer reentry opportunities where feasible to existing business owners and tenants. ENVIRONMENTAL QUALITY The primary goal of the Merged Plan is to continue to improve the overall environmental quality of Merged Area A by addressing existing deficiencies. The Merged Plan seeks to eliminate existing blighting conditions and cause improvements including new development, revitalization of the downtown core, infrastructure improvements, environmental conservation and remediation, and other public improvements. Future development will be reviewed by the City and Agency to insure that architectural, landscaping, and urban design principals are adhered to and that compatibility in land uses is maintained. Where required, more specific environmental analysis will take place on a project by project basis per CEQA. The EIR prepared for the City's General Plan, which includes Merged Area A, evaluated possible environmental impacts on land use, public policy, transportation, air quality, noise, public services and infrastructure, hazardous materials, hydrology and water quality, cultural resources, and visual and aesthetic quality due to development up until 2030. The EIR concluded that some future development projects in the City would result in significant unavoidable impacts on the following issue areas even with implementation of mitigation measures: • Reduced regional air quality, • Increased noise levels, and • Increased traffic. These impacts however, were evaluated on a citywide scale. Though activities in Merged Area A may contribute to these impacts, the EIR and General Plan provide policies for most impacts which will mitigate the effects of projects exclusively attributed to Merged Area A. During implementation of any specific redevelopment proposal in Merged Area A, an environmental analysis may be warranted as required by CEQA. TRAFFIC CIRCULATION The Merged Plan proposes to include several projects related to circulation and traffic improvements, including infrastructure construction and repair, pedestrian and bicyclist safety improvements, and expenditures to foster mass transit ridership which could reduce the number of vehicles on the roadways. These have been itemized and documented in the Capital Improvement Projects list included in this Report. Generally, the improvements proposed by the Merged Plan will address both current and future circulation and traffic deficiencies, and will be of benefit to those residing and working in Merged Area A. The EIR completed for the General Plan considered levels of service at intersections, roadways, highways and freeways; and further discusses transit options on Amtrak and the Southem California Regional Rail Authority (Metrolink) rail services, and Omnitrans bus routes. Metrolink's San Bernardino Line, which serves ~ORSG 140 SAN BERNARDINO MERGED AREA AM ERGER&AMENDMENTS Report to the Mayor and Common Council the City through the historic Santa Fe Depot, is Metrolink's busiest line and connects the community with the San Gabriel Valley and downtown Los Angeles seven days a week. Omnitrans bus service operates 21 fixed routes Monday through Saturday, providing local transportation within and around the City. Omnitrans updates its routes on a five year planning cycle through their Short Range Transit Plan. This allows for adjustments to be made to better meet rider needs. Regional and national bus service is provided to the greater area by the Southern California Rapid Transit District and Greyhound respectively. The General Plan EIR studied Levels of Service(LOS)at various intersections and road segments in the City, and RSG researched those that are within Merged Area A. Of the eight intersections within Merged Area A, six of the intersections levels of service were within the City's acceptable standard of LOS D or better(LOS range from "A", -being free flow-, to LOS "F", which is jammed conditions with excessive delays). Two intersections currently operate at levels E or F during the morning or afternoon rush hours or both, but one of these was projected to improve to a LOS D with implementation of the General Plan. The acceptable LOS on roadways is level C. Of the four roadway segments within Merged Area A, one was identified as operating at below acceptable levels, currently at LOS D, but it will improve to a LOS A with implementation of the General Plan. Finally, segments of Interstate 215 were also analyzed, with one section in Merged Area A that will result in LOS E and LOS F during peak rush hours requiring that a lane be added to the freeway to mitigate the General Plan impacts. All new development and redevelopment within Merged Area A will be consistent with the General Plan which controls the land use designations and intensities within Merged Area A. As such, the Merger and Amendments will not after or intensify the San Bernardino General Plan's land uses, traffic generation, levels of service, or intersection capacities. Therefore, no traffic or circulation impacts are anticipated that have not already been considered by the General Plan EIR. The implementation of redevelopment activities and programs will, however, stimulate growth in Merged Area A and encourage new development and investment from the private sector which will potentially result in increases in local traffic volumes. The Agency has identified a number of public improvement projects that would improve access into and Alas around Merged Area A, and reduce existing safety hazards for motorists and pedestrians. These -- improvements will not only serve existing residents and businesses within Merged Area A, but will help to attract new private investment by improving safety, convenient access, and aesthetics. The capital improvements proposed by the Merged Plan envision the expenditure of over $2,200,000 before 2016 on public transit and circulation improvements to aid traffic flow in Merged Area A and provide a variety of viable transportation methods. The majority of the funding is dedicated to supporting transit stations and transit- oriented development, which provide convenient alternatives to vehicular transportation, reducing traffic impacts as well as greenhouse gas emissions. Other possible improvements identified include construction of bike paths and removal of abandoned railway tracks. Additional funds may be allocated as needed and as they become available. Future projects would be subject to their own independent environmental review to assess the potential for significant transportation impacts at the time they are proposed. COMMUNITY FACILITIES AND SERVICES As outlined in this Report, implementation of the Merged Plan and its proposed projects is expected to significantly improve the City's existing community facilities and services. Moreover, the Merged Plan will provide a financial mechanism necessary to fund projects that will upgrade existing and construct new community facilities which are of benefit to Merged Area A, thereby benefiting all residents in the community. The Merger and Amendments will increase the limit on the collection of tax increment and bonded indebtedness, potentially making more revenue available to improve community facilities. The General Plan EIR that analyzed environmental issues within the City addressed citywide impacts on police protection services, fire and emergency medical services, libraries, parks and recreational facilities, water supply, wastewater management, gas, electricity, telecommunications, drainage, and solid waste services. No significant impacts were found or stated for any of the community services or public facilities. The Merger and Amendment alone would not cause impacts to community services and facilities. However, future impacts may occur as a result of implementing specific development within Merged Area A. These O RSG 141 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council developments would be assessed on an individual basis prior to approval to evaluate specific impacts. The following is a summary of the current level of service provided by the above listed community service providers. 1. Police Services The San Bernardino Police Department employs over 300 sworn officers, and about 150 civilians. Police services provided include patrol, traffic enforcement, investigations, forensics, school resource officer, and community service offices. Uniformed officers and community service officers respond to approximately 1000 calls-for-service every 24 hours. Patrol of the city is divided into four districts; Merged Area A is within both the southwest and southeast districts. Districts are further divided into patrol beats. The Police Department began reorganizing the districts and patrol beats in 2008 to better balance staffing levels with incidents and calls for service. Patrol beats will continue to be evaluated and reorganized as needed to continue to provide the most efficient levels of service. Further, the Police Department developed a Strategic Plan to help anticipate change and guide the future of the Department. The plan is divided into three parts: service to the community, service to the employees, and to ensure adequate resources. The Police Department prepares a report each year outlining the Department's performance in meeting the goals from the prior year. According to the General Plan EIR, additional facilities, equipment, and personnel will be added when needed as growth occurs and revenue sources increase with new development. As discussed in this Report, crime incidents in Merged Area A are significantly higher than in other areas of the City and are a blighting condition. Through this Merger and Amendments, the Agency will be able to dedicate more resources to the eradication of blighting conditions, including crime. 2. Fire Protection The San Bernardino City Fire Department ("SBCFD") provides fire protection in the City of San Bernardino, including Merged Area A. The SBCFD serves a resident population of approximately 202,000 and covers a diverse service area of 59.3 miles. The service area includes 19 miles of wild land interface area, an international airport, a major rail yard, the County Seat, a jail, two major mall complexes, and three major interstate freeways. Additionally, the SBCFD has mutual aid agreements with the surrounding Cities of Loma Linda, Rialto, and Colton for support in the event of a major incident. The total number of Emergency Operations Personnel is 161 divided among three platoons. The current "On-Duty" strength per shift (total number of personnel available to respond to emergencies including two battalion Chief Officers)is 53, spread among 14 companies. The average personnel work week is 56 hours. The SBCFD performance goal is that 90 percent of all emergencies be responded to within 5 minutes. Additional development could cause neighborhood fire stations to exceed response time goals. There are currently 12 fire stations throughout the City; but relocation of two existing fire stations has been identified as a way to increase performance standards as funding becomes available. Further, the City will continually review development proposals to ensure that projects will not adversely affect existing fire station services, and that new development could be served within performance standards prior to the approval of any specific development projects. New fire stations could be proposed in the future and would require CECA review. 3. Libraries The San Bernardino City Public Library consists of one Central Library, which is located in Merged Area A, and 3 branch libraries. The Central Library offers a variety of programs and facilities for public use. The facility has six computers with internal access for reference purposes, a typewriter, a Public Address system, a piano, and databases that can be accessed from home or the library for research purposes. Additionally, this branch provides Cosand Computer Learning Center with 24 computer workstations and workshops and classes on basic computer usage; and a Literacy Center that provides small group tutoring and classes in Adult Basic Education, Families for Literacy, English as a O PSG 142 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council Second Language,After School Homework, and Citizenship preparation to individuals who would like .� assistance in such areas. The library services outside of San Bernardino are provided by the San Bernardino County Libraries. Residents of unincorporated areas of San Bernardino and from cities such as Highland, Rialto, Fontana, and Lake Arrowhead have access to 29 County branches and over 1,167,000 volumes. Services offered include Book Mobiles, Books by Mail, Interlibrary Loan, Library Literacy, and Youth Services. All libraries within the City provide patron access to catalog via home computer, automated library circulation system, and automated catalog for accurate, efficient control of materials, and handicap access to library facilities. Because the City libraries and the San Bernardino County library system are part of the Inland Valley Library System, residents can use any of the City or County libraries within the County boundaries. Finally, the California State University of San Bernardino's John M. Pfau Library also services the vicinity. The 49,205-square-foot facility includes more than 610,000 books, bound periodicals, and other print items. Community members not enrolled with the University can access library services through a membership fee. Implementation of the Merged Plan could result in intensification of development that may create an increased demand for library services. The Division of Library Development Services of the State of California identifies a standard for library inventory of 1.5 volumes per capita. The City's inventory in 2005 was 276,000 volumes, or enough to serve approximately 184,000 people—less than the City's current population. The City therefore has identified the need for two new branches and the extension of one existing branch. The General Plan contains policies directed towards increasing library services. 4. Parks and Recreation The City offers about 540 acres of parkland, five community centers, two senior centers, and two 18- hole public golf courses and a private 18-hole golf course.. The City also provides some recreational services at local schools, under joint resolutions adopted by the City Council and school district, which allows schoolyard facilities to remain open in the daytime hours after school for recreational use of the community. The City offers a variety of recreational programs including fitness, aerobics, ballroom dance, golf classes, adult reading, ceramics/pottery and scrap booking, as well as senior programs of bridge, billiards, crochet class, arts and crafts, watercolor, computers, exercise, dance, the senior companion program, senior nutrition, and the retired senior volunteer program. The San Bernardino General Plan identifies the amount of open space that should be designated for parks and recreation as 5 acres of mini, neighborhood, community, and regional recreation lands per 1,000 persons. Based on this standard, there is an existing shortage of parkland in the City according to the General Plan EIR. The General Plan contains a series of policies for meeting the desired standard. Further, the City requires an impact fee as allowed by the Quimby Act to fund additional parkland, so new development of residential units would generate funds to help offset the resulting demand from new residents. 5.Gas, Electricity,and Telecommunications Southern California Edison ("SCE") provides electricity to the City. SCE owns, operates, and maintains both the aboveground and underground facilities. Most of SCE's facilities are located in the street right-of-way. There are no known deficiencies in the delivery system according to the General Plan EIR. The Southern California Gas Company provides service of natural gas. The Gas Company owns, operates, and maintains underground gas lines in most of the public streets. There is no local natural gas producing wells within the City; therefore, the supply of natural gas is imported. The availability of natural gas is based upon present conditions of gas supply and regulatory policies. Verizon and AT&T provide telecommunications services to both residents and businesses in the City. New development would increase the net use of utilities in Merged Area A, but this would not result in an adverse impact to utilities. Q RSG 143 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 6. Storm Drainage Storm drains and flood control facilities in San Bernardino are administered by several agencies: the City, the San Bernardino County Flood Control District, the Army Corps of Engineers, and the San Bernardino International Airport and Trade Center. Comprehensive Storm Drain Plans were created by the Flood Control District,and are utilized by the City as well for the design of drainage systems. In general, storm drain systems require regular maintenance, and the City has identified certain improvements on its capital improvement projects ("CIP") list. However, based on the city-wide CIP list, storm drain deficiencies are not a priority concern in Merged Area A at this time, and it is unlikely that any additional growth caused through implementation of the Merged Plan will create significant adverse impacts. 7. Solid Waste Disposal The City's Refuse and Recycling Division of the Department of Public Services provides solid waste collection throughout much of the City; and it is the County of San Bernardino Solid Waste Management Division that is responsible for solid waste disposal through operation of six landfills. State mandates require that local jurisdictions divert at least 50% of their waste through recycling, composting, or other means. According to the California Integrated Waste Management Board, residential land uses in the City were responsible for disposing 58,454 tons of solid waste while businesses in the City were responsible for 136,392 tons of solid waste resulting in a total of 194,846 tons of solid waste deposited in local landfills. With diversion, the average amount contributed to landfills by each resident would be 2 pounds of solid waste per day or 730 pounds per year. Employees/businesses produced 13 pounds of solid waster per person per day or 4,745 tons per year after 45 percent waste diversion. Regional planning for solid waste issues is conducted by the San Bernardino County Solid Waste Advisory Committee, governed by the County Solid Waste Management Plan. The City has a representative serving on the Solid Waste Advisory Committee. Any future solid waste facilities, such as transfer stations and landfills, must be incorporated in the County Solid Waste Management Plan. According to the General Plan EIR, solid waste collection is adequate and there is sufficient remaining landfill capacity for some time if diversion goals are met or exceeded, with significant capacity remaining at the San Timoteo Sanitary Landfill and the Mid-Valley Sanitary Landfill. It is unlikely that future development facilitated by the Merged Plan would reduce the City's ability to maintain solid waste management services or that it would negatively impact the City's ability to meet its recycling goals. S.Water The San Bernardino Valley Municipal Water District ("SBVMWD") and the East Valley Water District ("EVWD") provide water to the City. Groundwater from the Bunker Hill Sub-basin is the primary source of water, though some other sources are utilized including water imported through the State Water Project. Both water districts maintain long-term planning initiatives to meet future demand. Additionally, in accordance with the State Water Code, the City must maintain an Urban Water Management Plan to ensure adequate supply and delivery of water. The SBVMWD distribution system delivers water to over 151,000 residents in the City. SBMW D facilities include 60 active wells, four treatment plans with capacity of 50 million gallons per day, 32 reservoirs with a total capacity of more than 100 million gallons of domestic storage water capacity, 27 chlorination facilitates, and 66 booster pump stations. The distribution system includes approximately 551 miles of water mains, 41,317 active water meters and over 4,000 fire hydrants. The EVWD system facilities consist of approximately 150 miles of pipeline, 13 wells, 14.2 MG of storage facilities, and 41 booster stations.71 J0 City of San Bernardino Municipal Water Department Water Facilities Master Plan,prepared by CDM,dated August 2007. ORSG 144 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council .r, Any future development spurred by the Merged Plan will be consistent with the General Plan and the planning projections developed for the Urban Water Management Plan. Efforts to improve water supply are ongoing for all involved agencies. 9.Wastewater The SBVMWD also provides wastewater service to the City through collection, processing, and reclamation at the San Bernardino Water Reclamation Plant. Additional wastewater treatment is performed at the Rapid Filtration and Extraction facility operated jointly by the City of San Bernardino and the City of Colton. As of 2005, both treatment facilities were operating below capacity. However, the amount of citywide growth projected by the General Plan will increase demand, exceeding the capacity of the existing treatment facilities. According to the General Plan EIR, the wastewater conveyance system operates through approximately 45,000 connections and 751,000 linear feet of pipeline, and in 2005, about 6% of the pipelines had capacity deficiencies. However, as identified earlier in this Report, certain severe issues have been observed by City staff in Merged Area A, including cracks, restrictions in flow, and sagging sections. Maintenance of sewer conveyance and treatment systems must be a continual process in order to ensure adequate service. The City's General Plan identifies policies that address the need to maintain and increase wastewater treatment and conveyance capacity, including regular updating of Sewer Capacity Fees. New development in Merged Area A will be subject to Sewer Capacity Fees, which directly offset capital sewer costs associated with the growth. Additionally, the Agency's use of tax increment to ameliorate blighting conditions can help to fund wastewater improvements through projects identified in the Merged Plan. In general, the Merger and Amendment will increase the Agency's financial capacity to more comprehensively fulfill its goals under the Merged Plan, effectively implementing projects to ameliorate blight, including measures that mitigate impacts on community facilities and services. SCHOOL POPULATION AND QUALITY OF EDUCATION The San Bernardino City Unified School District, Colton Joint Unified School District, and Redlands Unified School District serve Merged Area A. According to the General Plan EIR, there is already a deficiency in the San Bernardino City Unified School District ("SBUSD") facilities existing throughout the City, requiring that their funding is leveraged to meet both current and future demands. The SBCUSD had a 2004-2005 total student enrollment of 59,279 students. The capacity of the SBUSD for the 2004-2005 year was 46,727 students resulting in facility shortage for 12,552 students. Using the SBCUSD student generation rates, build- out of the General Plan would result in a total student population for the City and SOI areas of 51,067 elementary school students, 12,285 middle school students, and 17,497 high school students, an overall growth of 36.4 percent. Growth in the student population in the City and surrounding areas would necessitate the need for additional school facilities and personnel within the SBCUSD, Colton Unified School District, Redlands Unified School District, and Rialto Unified School District. The impact of new development can be mitigated in part by the provisions of SB 50, which requires that development fees be paid upon approval of any residential or commercial project within the City. These fees would be directed toward maintaining adequate service levels, which include incremental increases in school capacities which would reduce impacts to a less than significant level. Nevertheless, Merger and Amendments does propose increasing the tax increment limit and bonded indebtedness limit which will provide the Agency with additional capital to implement blight eliminating projects, including increasing Merged Area A's supply of affordable housing. As a result of project implementation, it is reasonable to expect gradual growth and an increase in the number of school age children within the Merged Area A. It should be noted however, that all new development and redevelopment projects within Merged Area A, whether implemented by the Agency or the private sector,are required to be consistent with the General Plan which controls the land use designations and intensities. Accordingly, the General Plan contains relevant policies and implementation measures pertaining to schools in order to mitigate the effects of new development on schools and ensure the provision of adequate school facilities. Furthermore, during O RSG 145 SAN BERNARDI NO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council implementation of the Merged Plan, specific redevelopment proposals may warrant project specific environmental analysis as required by CECA,which requires an analysis of the project's impact on schools. PROPERTY ASSESSMENTS AND TAXES Each of the Project Areas currently collects tax increment. Property owners pay the same amount of property taxes whether they are in a redevelopment project area or not. However, in general, taxable valuations of property within and adjoining Merged Area A should increase as development and reinvestment occurs. New development within Merged Area A will be assessed at market value, as determined by the assessor. Regardless of whether property is in Merged Area A or not, the assessor may increase property valuations for existing properties at the maximum rate of two percent per year allowed under Proposition 13. The assessor will reassess the added value to property and improvements due to any new development or rehabilitation that occurs. In cases where property changes ownership, the property will be reassessed at the value established by the sales price. Additional levies resulting from the formation of special assessment districts would increase property taxes within the assessment district, regardless of whether or not it is in Merged Area A. However, such districts will require voter approval from those that live within the boundary of such district. The Merger and Amendments will not add or delete territory from the individual Project Areas, though it will merge them into a single project area. The Merger and Amendments will increase the tax increment and bonded indebtedness limits from individual limitations to a single $950 million tax increment limit and $380 million bonded indebtedness limit from Merged Area A. Further, it will extend the effectiveness and term to receive tax increment for the Central City North and Meadowbrook/Central City Project Areas. The amendment of these financial limits does not affect the tax rate, but instead allows the Agency to increase its financial capacity to issue bonded indebtedness and to receive tax increments generated by increased value of Merged Area A property over the frozen base. This funding is used to pay for projects that eliminate blight, and to repay Agency debts. A portion of the tax increment collected by the Agency will be paid to the County and other affected taxing entities pursuant to CRL and all previously negotiated agreements. RELOCATION AND LOW- AND MODERATE-INCOME HOUSING The Agency has proactively created, preserved, and rehabilitated affordable housing in the Project Areas. During the life of all Agency Redevelopment Plans, a total of 1,029 new affordable units are projected to have been created. The Agency has also satisfied all replacement obligations to date. The Agency has aggregated its housing obligations pursuant to the CRL, therefore any required new or replacement units may be located in any Project Area. While low- and moderate-income housing units ("affordable housing units ) are located throughout Merged Area A, the majority of those created by the Agency are within the Central City North Project Area. Pursuant to CRL Section 33413(d)(1), project areas adopted before 1976 are exempt from the production requirements previously described for very low, low, and moderate income housing. This exemption is removed if a 10-year extension of the project area's effectiveness is adopted under CRL Section 33333.10. M/CC and CCN Project Areas were adopted in 1970' and 1973, respectively, and are amended by this Merger and Amendments under CRL Section 33333.10. Therefore, housing units built in these Project Areas will now generate inclusionary housing obligations. Additionally, since the Agency has aggregated its housing production obligations across all Project Areas, affordable units produced in these Project Areas may be used to satisfy obligations generated in other Project Areas in the City. AFFORDABLE HOUSING UNITS TO BE DESTROYED OR REMOVED The Agency is not proposing any projects at this time that will cause the destruction of affordable units in Merged Area A. As such, a precise number of affordable units that may be destroyed cannot be identified. However, it should be noted that with the passage of Proposition 99, the Agency may no longer acquire owner-occupied residential properties through the use of eminent doman and transfer them to private owners. Should the Agency acquire residential property through voluntary acquisition or eminent domain resulting in 71 Central City/Meadimbrook Merger Amendment O RSG 146 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council the removal of affordable housing units, the Agency will be required to construct, develop or rehabilitate, or cause the construction, development or rehabilitation of, affordable housing units equal in number to those destroyed or removed. These "replacement housing units" must be constructed within four years of their destruction or removal, and must remain available at affordable housing costs to persons and families of very low, low-, and moderate-income throughout the period of land use controls established in the Merged Plan. Prior to commencement of any project that would result in destruction of affordable housing units, the Agency would prepare a replacement housing plan as required by State law. The replacement housing plan would identify how the Agency would meet the replacement housing requirements. The Agency has complied with all replacement housing requirements to date. PROJECTED DISPLACEMENT OF LOW-AND MODERATE-INCOME PERSONS AND FAMILIES As discussed above, the Agency is not able to identify specific projects that may result in future displacement of low- and moderate-income persons and families over the remaining duration of the Merged Plan. Regardless, in compliance with State law, prior to any displacement of low- and moderate-income persons and families, the Agency would prepare a relocation plan that would identify how all potentially displaced persons could be relocated. NUMBER AND LOCATION OF REPLACEMENT HOUSING Should housing units be destroyed or removed from the low- and moderate-income housing market by the Agency, suitable replacement housing locations will be available within Merged Area A, other Project Areas, or other areas of the City. The City Council and the Agency would take action as may be necessary to provide such replacement housing. When the Agency acquires property, enters into.a disposition and development agreement, owner participation agreement or other agreement, or undertakes any other activities requiring or causing the destruction or removal of housing units from the low- and moderate- income housing market, the Agency will provide replacement housing required pursuant to Section 33413 of the CRL and replacement housing plan pursuant to Section 33413.5. Through the Capital Improvements Projects list included in the Merged Plan, Agency is proposing funding for transit-oriented development where feasible. Further, underutilized sites throughout Merged Area A may be considered for infill housing where such development would be compatible with surrounding uses. Both transit-oriented developments and infill housing could provide ideal replacement housing opportunities if the need arises. NUMBER AND LOCATION OF LOW-AND MODERATE-INCOME HOUSING PLANNED OTHER THAN REPLACEMENT HOUSING As of 2009, the Agency has aggregated its inclusionary housing obligations to better facilitate development and rehabilitation in the best possible locations. As of June 30, 2009, Agency had exceeded its inclusionary housing obligation (pursuant to 33413(b)of the CRL),with approximately 636 units in total, of which 537 units are for very-low income, and the remaining 89 units are for low and moderate income. Despite the existing surplus, the Agency has identified a number of potential opportunities to increase the affordable housing supply in its current Housing Compliance Plan, adopted in 2009. These other opportunities are directed at increasing the affordable housing supply through private entities and include the notice of funding availability program, homebuyer assistance, and tax credit procurement assistance. As these programs will be made available to private entities or individuals, the amount of units generated through these programs is not quantifiable. FINANCING METHOD FOR PROPOSED LOW-AND MODERATE-INCOME DWELLING UNITS PLANNED FOR CONSTRUCTION OR REHABILITATION Not less than 20 percent of all taxes which are allocated to the Agency pursuant to Section 33670 of Article 6 of the CRL for existing redevelopment project areas that do collect tax increment within Merged Area A will be used for purposes of increasing, improving, and preserving the supply of low- and moderate-income housing available at affordable housing cost to persons and families of low-or moderate-income and very low-income households. Not less than 30 percent of all taxes collected by the Agency in the Meadowbrook/Central City and Central City North Project Areas will be used for these same purposes. This source of funding will be utilized for assisting in the financing of construction or rehabilitation of affordable housing units. These funds Q RSG 147 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council are typically used to leverage other funding sources including private equity and debt, State and Federal affordable housing tax credits, HUD and State HCD loans and grants, Prop 1C and HOME funds. TIMETABLE FOR PROVISION OF RELOCATION, REHABILITATION, REPLACEMENT AND INCLUSIONARY HOUSING If replacement housing is required, the units will be provided within four years as required by Section 33413 (a) of the CRL. All inclusionary housing requirements will be met within the time frames required by Section 33413, 33490, and 33334.4 of the CRL. The timing for any housing rehabilitation will be linked to the availability of the funds and the level of participation by qualified owners. The relocation plan(s) prepared by the Agency for a particular development activity shall contain schedules to insure comparable replacement housing is available in accordance with the requirements of the CRL and the State Relocation Guidelines. OTHER MATTERS AFFECTING THE PHYSICAL AND SOCIAL QUALITY OF THE ENVIRONMENT The Merged Plan is intended to preserve and revitalize the existing residential neighborhoods in the City and provide for infill housing where appropriate. These actions are more thoroughly discussed as a part of the Agency's Ten Year Affordable Housing Compliance Plan, which identifies the Agency's primary goals of investing in, promoting, and producing affordable units; engaging the community; and providing housing accessible to all families. O PSG — -- 148 Description of Merged Area A Bonds SECTION F: DESCRIPTION OF MERGED AREA A BONDS CRL Section 33333.11(e) requires a description of each bond sold by the agency to finance or refinance the redevelopment project prior to six months before the date of adoption of the proposed amendment,and listing for each bond the amount of remaining principal, the annual payments, and the date that the bond will be paid in full. This requirement is the result of the 10-year extension of the CCN and M/CC Project Areas and lists all six bonds sold by the Agency that are supported by tax increment revenue in Merged Area A. 1998 SERIES A REFUNDING BONDS The Agency issued$19,000,000 of tax allocation refunding bonds Series A in 1998, consisting of serial bonds with varying interest rates from 3.600%to 5.750%. Interest is payable semiannually on January 1 and July 1. Serial bonds mature annually on July 1 through July 1,2020. The debt service principal and interest payments are pledged from the Agency's Tax Revenues from the Central City Projects. Table F-1 below shows the outstanding principal and payments on the bonds as at the beginning of FY 2009/10. 1998 A Tax Refunding Bonds: Amounts due from the Project Area Table F-1 San Bernardino Merged Area A Fiscal Year Central City Projects Principal Interest 2009/10 775,000 658,463 2010/11 815,000 618,405 2011/12 855,000 579,568 2012/13 895,000 537,995 2013/14 940,000 493,720 2014/15 985,000 442,606 2015/16 1,040,000 384,388 2016/17 1,100,000 322,863 2017/18 1,160,000 257,888 2018/19 1,230,000 189,175 2 019/20 1,300,000 116,438 2020/21 1,375,000 39,531 Total 12,470,000 4,641,038 Source:Redevelopment Agency of San Bernadino Debt Service Schedule Q RSG 149 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 1998 SERIES B SUBORDINATE REFUNDING BONDS The Agency issued $8,590,000 subordinated tax allocation refunding bonds in 1998, consisting of$4,815,000 of serial bonds with varying interest rates from 4.500% to 5.875% and $3,775,000 of term bonds, bearing interest at 6.000%. Interest is payable semiannually on January 1 and July 1. Serial bonds mature annually on July 1 through July 1, 2020. The debt service principal and interest payments are pledged from the Agency's Tax Revenues from the Central City Projects. Table F-2 below shows the outstanding principal and payments on the bonds as at the beginning of FY 2009110. 1998 B Tax Refunding Bonds: Amounts due from the Table F-2 Project Area San Bernardino Merged Area A Fiscal Year Central City Projects Principal Interest 2009/10 320,000 344,580 2010/11 335,000 325,993 2011/12 355,000 306,239 2012/13 375,000 285,158 2013/14 395,000 262,729 2014/15 420,000 238,838 2015/16 445,000 213,150 2016/17 470,000 185,700 2017/18 500,000 156,600 2018/19 530,000 125,700 2019/20 560,000 93,000 2020/21 1,270,000 38,100 Total 5,975,000 2,575,785 Source:Redevelopment Agency of San Bernardino Debt Service Schedule O RSG 150 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council 2002 TAX ALLOCATION REFUNDING BONDS In April 2002, the San Bernardino Joint Powers Financing Authority issued $30,330,000 in tax allocation refunding bonds to refund the 1995 Tax Allocation Bonds, to finance certain redevelopment activities of the Agency's project areas, to fund a reserve fund for the bonds, fund the interest account, and pay costs of issuance of the bonds. The 2002 bonds consist of serial bonds of$9,125,000 maturing from 2003 to 2012 in annual installments of $775,000 to $1,125,000, as well as term bonds of$8,290,000, due in 2018, term bonds of$3,475,000 due in 2020, and term bonds of $9,440,000 in 2026. Interest is payable semi-annually on October 1 and April 1, commencing on October 1, 2002, at rates ranging from 3.25%to 5.625%. The debt service principal and interest payments are made from the Agency's Tax Revenues from the Central City North, State College No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown and Tri-City Project Areas. Table F-3 below shows the outstanding principal and payments on the bonds as at the beginning of FY 2009/10. 2002 Tax Allocation Revenue Refunding Bonds:Amounts due from the Project Area Table F4 San Bemar6ino Merged Area A Fiscal Year Central City North southeast IMuvrial park Tri city South Valle Tool Princi I Interest Princl 1 Interest princliml Inierad Princi I Interest Principal Interest 2009/10 43,905 65,981 205,606 3081992 167,003 20,918 46,555 69,965 483,069 6]6,62] 2010111 41089 63,611 215,835 297,090 175,312 241,960 48.872 67.451 486,10] 710,M 211/12 49,147 61,076 2W.156 286.018 186,944 232,318 52114 64,763 $18,361 757,418 M1013 5119% 51311 243454 2]30]2 19],]45 221,803 55.125 61,832 511310 801,10 2013/14 51045 55,192 257.774 258,465 209,3]] 209 1938 51360 51524 580,564 841309 201M15 51321 51,889 23118 242,999 221.040 19],3]5 61,842 55022 615,121 asalxo 2015/16 61,016 4130 289,485 221612 231134 184065 65,548 51,312 651,982 901664 201W17 65.529 4401 391874 203.243 249,258 169,07 69.486 4],3]9 691,147 11009,891 2017/18 69,461 40,749 325287 191830 2 ,214 1551001 73.60 43,210 ]32616 1,070,485 201&19 73,611 36.582 344,]2 171,313 280,000 139,149 78.00 31790 7]1389 11131,444 071&W 78,198 32.091 366.203 150,285 297,448 122,068 Max 34,029 824,769 1,205,137 202421 121,011 27,321 566,695 12,946 460,20 103,924 121317 28,971 1,276.319 1,864,932 2021122 41920 19,304 229,133 W,403 186,113 73.429 511883 214]0 511057 754,052 2022/23 52205 11063 244 4r 75,223 10,576 61,ON 51357 17,033 550,614 604,547 023/26 581539 12,61 274.141 59.026 M,671 47,944 62,074 13,365 617,425 W2,1N 2024/25 53.952 8.726 252.60 401884 205223 33192 57,210 9,253 Mew 831,4]] 2025/26 ]],761 5,152 364,158 24,126 295,]65 19,596 82456 5,463 820,162 1,198,41 Total 1,05.504 64],]24 4,989.7]] 3,033,305 4,052938 246319] 1,129,837 688,832 11.231058 16,421831 Spuxe:Resevel art A nt o/Sen Benurtliro oast Service ScIIeWNrIB O RSG 151 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 2005 SERIES A REFUNDING BONDS In September 2005, the San Bernardino Joint Powers Financing Authority issued $55,800,000 in tax allocation refunding bonds to refund $55,800,000 of the outstanding 1995A Tax Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the Authority's Tax Allocation Refunding Bonds, Series 2005B(described below). The Series 2005A bonds consist of serial bonds with varying interest rates from 5.15% to 5.75%. Interest is payable semi-annually on April 1 and October 1, commencing on April 1, 2006. Serial bonds mature annually on October 1,2006 through October 1, 2025. The bond debt service is secured by principal and interest payments from the Agency's Tax Revenues from the Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown and.Tri-City Project Areas. Table F-4 below shows the outstanding principal and payments on the bonds as at the beginning of FY 2009/10. 2005 A Tax Allocation Revenue Refunding Bonds:Amounts due from the Pro ctAma Table FA San BemaNim Wigiid Naa A Fiscal Yaw QWal CRY NOM swd,eal lnduWlal Pan, Td City South Valle ToYI Pdeci,l ImanA Pdnd"I Inkinig Pdad9al InIeAY pdnd pal InENNt Pd WI al unsaid 2%9/10 11],603 226,397 635214 %7,383 193,458 299,3% 9i'm 141,992 1,101.054 11655m2 2010/11 187,371 216,360 673315 %1,316 204,098 2%,%7 96,827 136,0% 1,161,612 11592,8,18 2011112 197,676 205,524 710318 912,378 215324 276,56,1 102152 131,2% 1,225500 1,525,671 201Y13 209,043 Mni 751,193 8701358 227,705 263827 1 09,0% 125163 1,295,51M 1,453179 2013'14 221,%3 181.465 79,1,386 6251923 24,796 250,357 114,230 1181713 113714% 1,376,518 2014/15 233,774 188,389 841%4 778.933 254,644 2%,113 1WEC6 112,015 1.449.287 1,2%,450 2015/18 247,216 151,550 8%,387 729,240 269,286 121,050 121,753 104,889 1.532,621 1,209720 201&17 MA31 139 07 939.440 678690 204.170 2%.121 MINI 97,312 1,620,747 111191%1 2017118 271463 124,411 9%A61 621,119 301,1,14 160,276 142,%7 891321 1,713,940 1,023,188 201 8119 292380 1%,119 1,050.591 552.353 310.460 171463 151.081 W570 1,012,492 9211801 2019120 3091170 %,825 1,111,0% 5%,207 mis,P1 151,625 159,769 71,933 1.916.710 814,589 202021 326,948 R,536 1,174,682 434,4% 3561135 131,1/)4 160,05 62,402 2,026,921 701,210 2021(12 345,747 531% 1,242.438 WINK) 376.613 110,637 171.670 521488 2,143469 581,311 202223 365627 32744 1,313,878 291,4% 398,268 88.359 188.914 41,919 2.266,718 ,154,518 202324 386,651 11,116 1,389,426 213,n6 421,169 "WI 1%,8% 317,12 2,391054 326.435 2@425 1,489,318 131,587 4451386 39,887 211,297 Men 2,46,%2 1 90,391 202526 1.M.904 44612 411996 13,541 223447 6,24 2246,247 64,632 7dal 4031142 1,919470 4,534.141 9,8%.908 5.315,023 2,999,993 2521,517 1,423,236 29,4%,824 16,2%.E07 So :ReCeuslo WA nc dSWB�WDad SWw ScB e O RSG 152 SAN BERNARDINO MERGED AREA A MERGER&AMENDMENTS Report to the Mayor and Common Council 2005 SERIES B REFUNDING BONDS In September 2005, the San Bernardino Joint Powers Financing Authority issued $21,105,000 in tax allocation refunding bonds to refund $21,105,000 of the outstanding 1995A Tax Allocation refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the proceeds of the Authority's Tax Allocation Refunding Bonds, Series 2005A. The Series 2005B bonds consist of serial bonds with varying interest rates from 5.15% to 5.75%. Interest is payable semi-annually on April 1 and October 1, commencing on April 1, 2006. Serial bonds mature annually on October 1,2006 through October 1, 2025. Bond debt service is secured by principal and interest payments from the Agency's Tax Revenues from the Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South Valle, Uptown and Tri City Project Areas. Table F-5 below shows the outstanding principal and payments on the bonds as at the beginning of FY 2009/10. 2005 B Tax Allocation Revenue Refunding Bonds:Amounts due from the ProjectAnaa Table FS San Beman ino Merced Area A FlolYear Cenaal Ciq NOM SoNMadinluarlal Park Td City Suulh Valle Total Principal Inbred Pnnd I Prance Principal IrNama Principal Inlarea Pond al Imarad 2008/10 41,1% am 153,941 214162 103,184 1%.636 28.289 43,267 326,520 493.964 2D1Q'11 4857 5910]6 162,407 2291463 100,a59 153,805 29,845 4;168 314,479 475,512 M11112 45,7M 47,569 171,310 220,071 114,846 147,510 31,487 40,442 368425 455,580 201L13 48,392 44862 181,192 209,935 121,450 140,716 81.297 38,579 361,322 431,0% 2613'14 51,164 42,000 191,610 198,217 128.433 133532 35.212 34610 406,420 411,359 201415 54106 38,973 202628 187,683 135.818 124936 37,237 34521 429,]69 387,318 201!916 57.217 S.7r3 214,279 175,997 148628 117,%1 5,3M 32.324 454592 361.694 2016117 00,007 32386 224000 Mm 151.887 100,405 41.642 29,995 460.65 M..009 2011118 88987 28,808 23465 149.817 160,620 100,420 4405 27,532 5[0.273 "'Sm 2m6119 67,886 25,024 2584% 15.613 189,858 9'919 46,589 24.927 531,498 276,512 5192D 71,557 21,021 267,979 1M,60 179.622 Win 49.246 22.18 568.4% 261,717 202Q21 75,671 16,788 283388 104,51 189951 7.248 alln 19,2% 001,098 211.095 20211'12 931022 12,312 2 9,683 88.038 2D'8n 5.010 won 18.179 65,650 175,538 2022123 84a4 7,578 316,915 70.310 212.23 47,129 54239 12921 672,200 Wall 202324 891489 215M 335.15 61,584 224,837 34562 61.588 9,476 710,852 %,175 202425 354.408 31,739 237,554 21,274 85.129 5,833 B 'MI 54947 2025126 374,86 10,]5 251,213 7,222 0,874 1,9m 694873 19,978 Total 934,618 454143 4,22.314 2,387,190 2,934854 11000,095 771,217 434689 8,7M,022 4984119 So,rvs:FeCewloemenlA en o/San anmNlno Dvb, e__yA We O RSG 153 SAN BERNARDINO MERGED AREA MERGER&AMENDMENTS Report to the Mayor and Common Council 2006 HOUSING SET ASIDE TAX ALLOCATION BONDS In April 2006, the San Bernardino Joint Powers Financing Authority issued $28,665,000 in tax allocation bonds to fund the acquisition, demolition and relocation of certain occupants of the Central City North and provide for other redevelopment activities within the City of San Bernardino. The 2006 bonds consist of serial bonds of$5,630,000 maturing from 2007 to 2011,term bonds of$7,370,000, due May 1, 2016, and term bonds of$15,665,000 due May 1, 2027. Interest is payable semi-annually on May 1 and November 1,commencing on November 1,2006, at rates ranging from 5.20%to 6.15%. Bond debt service is secured by principal and interest payments solely from the Agency's Housing Set aside Revenues from the Central City North, Central City Projects, Central City West, Mount Vernon, State College Project No. 4, and Southeast Industrial Park, Northwest, South Valle, Uptown, 40th Street and Tri City project areas. Table F-6 below shows the outstanding principal and payments on the bonds as at the beginning of FY 2009/10. 2006 Housing Set Aside Bonds: Table F-6 Amounts due from the Agency' San Bernardino Merged Area A Fiscal Year Principal Interest 2009110 1,185,000 1,508,858 2010111 1,250,000 1,445,460 2011112 1,315,000 1,377,960 2012113, 1,390,000 1,303,991 2013114 1,470,000 1,225,804 2014/15 1,555,000 1,143,116 2015/16 1,640,000 1,055,648 2016/17 1,730,000 963,398 2017/18 1,840,000 857,003 2018/19 1,850,000 743,843 2019/20 1,790,000 630,066 2020/21 1,835,000 519,983 2021122 1,015,000 407,130 2022/23 1,075,000 344,708 2023124 1,145,000 278,595 2024/25 1,110,000 208,178 2025/26 1,160,000 139,913 2026/27 1,115,000 68,573 Total 25,470,000 14,222,224 1. Amount due shows entire debt service from Housing Set Aside Fund for the Agency Source:Redevelopment Agency of San Bernardino Debt Service Schedule Q RSG 15a © Method of Relocation SECTION G: METHOD OF RELOCATION Section 33352(f)of the CRL requires that this Report include a plan and method of relocation for Merged Area A. Additionally, Section 33411 of the CRL requires that the Agency prepare a feasible plan for the relocation of families or persons to be temporarily or permanently displaced from housing facilities in Merged Area A, and for nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in Merged Area A. Pursuant to the CRL, the Agency previously prepared Methods of Relocation for the Project Areas, being merged as Merged Area A, at the time of initial Redevelopment Plan adoption for each Project Area. The Merger and Amendments do not alter the Agency's existing Method of Relocation. However should any actions be undertaken which include the relocation of residents or businesses, such actions will adhere to the State Relocation Law (Government Code 7260 et seq.), the State Relocation Guidelines, as those regulations may be amended by the State from time to time, and the Method of Relocation, as previously prepared and in effect and as set forth below. Any amendments to the State Guidelines of State Relocation Law shall automatically be incorporated without the need for further action by the Agency. As provided in Section 33411.1 of the CRL, the Agency shall not displace from housing units, persons or families of low- and moderate-income unless and until there is a suitable housing unit available and ready for occupancy by such displaced person or family at rents comparable to those at the time of their displacement. Further, such relocation housing shall be decent, safe, sanitary and suitable to their individual needs; located in areas not less desirable than the Project Area; with comparable access to public utilities and commercial facilities. The relocation area must also be reasonably accessible to their places of employment and priced AO%N within their financial means (all of the foregoing as defined in State laws and regulations). O RSG 155 © Analysis of Preliminary Plan SECTION H: ANALYSIS OF PRELIMINARY PLAN Section 33352(g) of the CRL requires the inclusion of an analysis of the Preliminary Plan for Merged Area A. An analysis of the Preliminary Plan was provided in the supporting documentation prepared at the time the each Project Area, being merged as Merged Area A, was adopted. Pursuant to Section 33457.1 of the CRL, an analysis of the Preliminary Plan is not required for the Merger and Amendments because it does not propose to add new territory nor amend boundaries that would necessitate the need for a preliminary plan. O RSG I i56 Report & Recommendation of the Planning Commission SECTION I: REPORT & RECOMMENDATION OF THE PLANNING COMMISSION Sections 33333.11(h)(2)and 33352(h)of the CRL require inclusion of a report of the Planning Commission of the City of San Bernardino ('Planning Commission'). The Planning Commission is required to review the proposed Merged Plan and determine conformance with the City's General Plan. On June 23, 2010, the Planning Commission took such action pursuant to Section 33346 of the CRL. O RSG _ 157 Statement of General Plan Conformance SECTION J: STATEMENT OF CONFORMANCE WITH GENERAL PLAN Section 333520) of the CRL requires a report of General Plan conformance per Section 65402 of the Government Code. The Merger and Amendments do not contain provisions that would alter land use designations, nor do the proposed Merger and Amendments affect the land use provisions of the General Plan. A report of the Planning Commission determined that the Merged Plan was in conformance with the General Plan. Pursuant to Section 33346 of the CRL, the Planning Commission made a finding and reported on June 23, 2010, that the proposed Merger and Amendments are in conformance with the General Plan. Q RSG 158 © Environmental Impact Report SECTION K: ENVIRONMENTAL IMPACT REPORT Section 33352(k) of the CRL requires environmental documentation to be prepared pursuant to Section 21151 of the Public Resources Code. Concurrent with the adoption of the Merged Plan, the Agency undertook appropriate environmental documentation as necessary. For the Merger and Amendment, a Environmental Impact Report ("EIR") was prepared pursuant to California Environmental Quality Act guidelines. The EIR found that the Merger and Amendments would only have significant unavoidable impacts on Air Quality. The impacts would be caused by construction related emissions, operational emissions, and green house gas emissions. The Common Council will hold a public hearing to receive comment on the EIR on October 4, 2010. n O PSG ' iss Report of the County Fiscal Officer SECTION L: REPORT OF THE COUNTY FISCAL OFFICER The proposed Merger and Amendments do not add territory or change the boundaries of existing Project Areas that will comprise Merged Area A. Consequently, pursuant to Section 33457.1 of the CRL, there is no requirement for preparation of a base year report, as described in CRL Section 33328 for the Merger and Amendments. Q RSG -- �i so Taxing Agency, Project Area Committee & Community Consultations SECTION M: TAXING AGENCY, PROJECT AREA COMMITTEE, RESIDENTS AND COMMUNITY ORGANIZATION CONSULTATIONS Pursuant to CRL Section 33333.11(d), on April 26, 2010 the Agency held a community workshop informing the public about the proposed Merger and Amendments. Merged Area A residents, property owners, and community organizations were notified via a mailed notice of the community meeting and were provided access to the draft Preliminary Report and Merged Plan. Over 21 community members attended the meeting to learn about the Merger and Amendments and to ask questions regarding the proposed project or redevelopment in general. The Agency notified the taxing agencies of the proposed Merger and Amendments on May 5, ,_ 2010 with the transmittal of the Preliminary " Report pursuant to Sections 33333.11(e), 33344.5, and 33344.6 of the CRL. The Agency offered to consult with the affected taxing agencies at that time. Notices of the joint public hearing on the proposed Merger and Amendments were sent to each affected taxing entity in accordance with the requirements of the CRL. These transmittals to the affected taxing entities included offers to consult on the Merger and Amendments if desired by the taxing entities. To date, none of the taxing entities have expressed interest in meeting with the Agency to discuss the Merger and Amendments. ...,� Pursuant to Section 33385.3 of the CRL, a Project Area Committee ("PAC") is required if the Agency proposes to amend a redevelopment plan to: (1) grant the authority to the Agency to acquire by eminent domain property on which persons reside in a project area in which a substantial number of low- and moderate-income persons reside; or (2) add territory in which a substantial number of low-and moderate- income persons reside and grant the authority to the Agency to acquire, by eminent domain, property on which persons reside in the added territory. The proposed Merger and Amendments does not involve either of these activities. Therefore, there is no requirement to form a PAC nor does any PAC exist in the Project Areas comprising Merged Area A. Consequently, pursuant to Section 33457.1 of the CRL, there is no requirement for a summary referred to in CRL Section 33387. O RSG , J Appendix 1 Photographs of Physical and Economic Blighting Conditions Central City North Project Area 1 CCN Project Area a. Picture 1: This uninhabited single family residence located on 7" Street in the CCN Project Area is suffering from deteriorating roofing materials and sagging roof supports. A deteriorated roof will not provide adequate weather protection, leaving the house susceptible to water damage. The sagging roof could be a sign of structural problems, making the residence dangerous to occupants. In addition, uninhabited buildings can attract crime to an area deterring future private investment in the neighborhood. 2 CCN Project Area Picture 2: The exterior of this residence located on 7`"Street in the CCN Project Area is showing signs of dilapidation as several areas of the exterior are lacking paint, revealing the untreated wood beneath. Furthermore, the wood paneling is damaged and misaligned. These weaknesses in the exterior facade of the home exposes the building to the natural elements, offering little protection from the weather and opening the structure up to further damage. 3 4` CCN Project Area V- Picture 3: This parcel is located on 7'" Street in the CCN Project area. The deteriorated roof, deteriorated eaves and overhangs, as well as a lack of paint on this building provide inadequate weather protection for the structure. The wood paneling is now exposed to the elements, a condition that is conducive to wood rot and mold growth and will render the property unsafe for occupancy due to health and safety issues. 4 1 CCN Project Area i Picture 4: The roof on this property on 7'"Street in the CCN Project Area is missing tiles and is seriously decaying and sagging. Additionally, the back house sitting on this lot has a large crack running down one of its walls, potentially indicating a faulty foundation. Structural issues such as these can potentially lead to the building's collapse and are therefore dangerous to inhabitants. 5 CCN Project Area o.. � Y 1 _;_ -..3.t „r —t •s gz,. Picture 5: This property on 7'" Street in the CCN Project Area appears to be uninhabited and suffers from broken windows, damaged walls, and a deteriorating foundation. Heavy repairs are required before this residence is fit for future tenants. 6 CCN Project Area i ti + Picture 6: This vacant lot on 7'"Street in the CCN Project Area is being used for illegal dumping of garbage and other debris, which could become a fire hazard or nesting ground for pests and vermin. This property is required for effective redevelopment. ..y 7 CCN Project Area w Pictures 7a and 7b: The room addition to this house on 80 Street in the CCN Project Area has been poorly constructed using untreated sheets of plywood. Such a substandard building material fails to provide adequate weather protection and leaves the property susceptible to damage and dilapidation. In the backyard amongst the trees, a trailer is parked and appears to be occupied as a living space which is a violation of zoning regulations. 8 a iCCN Project Area 1 I i ' Picture 8: This property on Vine Street in the CCN Project Area has a large amount of possessions, wood boards, and metal scraps being stored out in the open. Outdoor storage like this can be a fire hazard or used by vermin as nesting grounds 9 CCN Project Area c . bit; iN 17,li�i�il Picture 9: This property on G Street in the CCN Project Area is having roofing issues. Some roof tiles are cracked and missing which exposes the under layers of the roof to the elements. Such damage can be conducive to decay and wood rot caused by exposure to weather conditions. 10 I CCN Project Area O L s Picture 10:This uninhabited property on 7� Street in the CCN Project Area is suffering from a lack of adequate weather protection, broken windows, and a sagging roof. In addition, vacant properties can attract crime and affect the overall safety of an area. 11 CCN Project Area I_-_ 4rp Picture 11:This structure on H Street in the CCN Project Area suffers from a dilapidated roof which is rotting and cracked. If left unrepaired, the whole structure is at risk for further decay and damage. 12 CCN Project Area �II�l1��I�Rit 4s.. Picture 12:This property on 8"' Street in the CCN Project Area has windows which are broken and have been replaced by untreated sheets of plywood. The plywood will not stand up to inclement weather conditions and should be replaced in order to prevent further deterioration of this residence. 13 CCN Project Area .n Picture 13:This structure on 81" Street in the CCN Project Area is suffering from a lack of paint and plaster. Without proper weather protection, the building is exposed to the elements and can fall into further disrepair. 14 CCN Project Area Picture 14:This property on Mayfield Avenue in the CCN Project Area suffers from a decaying roof that has broken and damaged roofing tiles. In addition, the eaves and overhangs of the structure are damaged and deteriorated. These conditions make the building susceptible to weather damage. In addition, the roof is beginning to sag, which can be a sign of structural damage, making the building dangerous to inhabitants. 15 CCN Project Area Picture 15:This property on Mayfield Avenue in the CCN Project Area shows signs of severe roof dilapidation. The roof supports have deteriorated and begun to sag and buckle. Further inclement weather exposure will undoubtedly worsen these blighting conditions which raise concerns for the safety of the building. The structure currently appears uninhabited, which makes it a target for crime, squatters, vagrants, or gang members. 16 CCN Project Area t X F " Picture 16:This structure on Mayfield Avenue in the CCN Project Area lacks adequate weather protection and has a damaged, deteriorating and sagging roof. The windows have been boarded up, and the property appears to be uninhabited. 17 CCN Project Area r 3 i i Picture 17:This house on Arrowhead Avenue in the CCN Project Area presents another example of deteriorating roofing materials. Missing roof tiles have allowed the weather to deteriorate the underlying insulation, as it now appears to be bubbling and ripping. Insulation that is exposed to bad weather conditions can easily decay, rot, or grow mold, becoming a health hazard to the building's inhabitants. 18 CCN Project Area ti .i Picture 18: This residence on H Street in the CCN Project Area is suffering from broken and deteriorating roofing materials, eaves, overhangs, and garage door. Such conditions leave the structure susceptible to water seeping into the interior and can then lead to further deterioration, rot, and mold growth; conditions that can make a structure uninhabitable. 19 CCN Project Area u 'Yr i� _ . � •b Mtjilb �� �W 0 �y Picture 19:This parcel is located on H Street in the CCN Project Area. Exposed open ended wires are protruding from the side wall of this residential property. This blighting condition is an electrical hazard and creates the risk for fire or electrocution. 20 si �!�►,��i��u �►�►u����u���►u►�mmuui�lllilll �I ll��lll�ll�l�l��l(IIIIIIIII�I�I �J����� ICI i�N����� CCN Project Area Picture 20:This vacant structure located on 7�Street in the CCN ProjeGt Area has a broken and deteriorating roof leaving it exposed to weather conditions, If left untreated, the structure will be susceptible to wood rot and further structural damage. CCN Project Area F4� Picture 21:This parcel is located on Crescent Avenue in the CCN Project Area. The roof, eaves, and overhangs on this structure are sagging. This may indicate structural damage that may become a hazard to the occupants. Also, the placement of the fire hydrant is too close to this home's property line making the sidewalk hard to navigate and creating a potential hazard if a fire truck had to use the hydrant. 22 CCN Project Area JS Picture 22a and 22b: This parcel is in the CCN Project Area. The roof and roof supports on this property, along with the support columns, are sagging and buckling, indicating the presence of serious structural damage. With such damage, this structure is potentially unfit for occupancy due to the safety hazards these conditions pose. 23 CCN Project Area ANOMM f y Picture 23:This parcel is located on Crescent Avenue in the CCN Project Area. As shown in the photo, structural damage is present at this property and is evidenced by the sagging roof photographed above. Damage like this can be dangerous to the residents of the home as further weakening can result in the collapse of the structure, especially under extreme weather conditions. 24 CCN Project Area Picture 24: The property photographed above is on G Street in the CCN Project Area. Its foundation appears to be damaged and deteriorated causing the columns and walls to lean and buckle. Such structural issues can lead to a building collapse, posing a serious threat to the residents of the home. 25 CCN Project Area Picture 25: This parcel is located on Victoria Street in the CCN Project Area. The structure has broken and deteriorating roofing materials. The conditions of the roof, leave the residents of the property at risk of being exposed to water leaks, water damage, and mold. 26 CCN Project Area Picture 26: This property on Spruce Street in the CCN Project Area suffers from cracked and peeling eaves, overhangs, and wood paneling, leaving it susceptible to weather damage. A poorly constructed addition has been built using plywood sheets for walls, leaving the addition vulnerable to inclement weather and structural collapse. As can been seen, it is likely that the addition is not weather protected, since it is wrapped in a plastic tarp. Additionally, exposed open ended wires protrude from the walls of the residence. Exposed wires are a serious electrical and fire hazard. 27 CCN Project Area Picture 27:The structure pictured above is located on Spruce Street in the CCN Project Area. The structure shown above has sustained severe damage to its facade, revealing the inner layers of its walls. The building's eaves and overhangs have seriously deteriorated and cracks and holes in the roof provide no protection from inclement weather. 28 CCN Project Area ^] J Picture 28:The vacant commercial property on E Street in the CCN Project Area is an example of the loss of investor interest within the project area. Vacant commercial properties adversely affect the economic viability of the project area. 29 CCN Project Area Vk 4 A ff f j.. r Picture 29:This parcel is located on Seeley Alley Avenue in the CCN Project Area. The rusted sheet metal used as a roof for this house is an example of substandard building materials. Such a roof will not provide the proper weather protection for a residential property. Additionally, the property lacks an adequate amount of vehicular or pedestrian access, creating a safety hazard for occupants. 30 CCN Project Area r ` t 'i r l Picture 30:On this property, located on Victoria Street in the CCN Project Area, many portions of the facade are no longer protected from the elements with paint and sealant. The structure is highly susceptible to wood rot, mold growth, and warping. 31 CCN Project Area ROAST F•SURGERS•P .- E . Picture 31: This vacant restaurant property located on D Street in the CCN Project Area is yet another example of decreased investor interest within the project area. A lack of investment in an area can leading to falling property values. 32 Central City East Project Area 33 CCE Project Area t 't �FNONE 1 AUI0 'rI M3455 UPH `I CTERY Pictures 32a and 32b: This commercial property on Waterman Avenue in the CCE Project Area, is suffering from a lack of proper weather protection, leaving its exterior susceptible to bad weather. The building's roof is also deteriorating and beginning to sag. Further deterioration and dilapidation is evident throughout the building's eaves and wood paneling. 34 CCE Project Area Picture 33:The property above, located on Waterman Avenue in the CCE Project Area, suffers from a number of blighting conditions. Cracks in the building's fapade, deteriorating eaves, and the lack of proper weather protection leave this building open to inclement weather. The structural integrity of this building is also a concern as the roof is damaged and sagging, indicating serious weakness. Lastly, the occupants are storing scraps and other items outside without proper screening, making the area hazardous to pedestrians and neighboring residents, as well as posing a potential fire threat. 35 CCE Project Area ALI s ASE algal Picture 34:The property is located on Mountain View Avenue in the CCE Project Area. Economic blighting conditions are attributed in part to the number of commercial vacancies throughout the City's project areas. The property pictured above shows clear signs of neglect and lack of investment. 36 CCE Project Area i Picture 35: The roof at this property on 5"Street in the CCE Project Area is in need of repair and replacement. Damaged and deteriorating roofing materials fail to provide proper weather protection and can lead to further dilapidation. 37 CCE Project Area 4� p A Picture 36:This parcel is located on Kingman Street in the CCE Project Area. Deteriorated roofing materials pictured above leave the structure open to the elements. Without repair, further blighting conditions will develop such as deterioration, weather damage, and structural problems. 38 CCE Project Area r I L :R! Pictures 37a and 37b: A number of blighting conditions are present at this property located on 4'" Street in the CCE Project Area. The structure lacks proper weather protection, the roofing materials have deteriorated, and portions of the building's foundation have been damaged. These conditions cause the structural integrity of this house to be a concern. 4 39 CCE Project Area J. r , Picture 38: This uninhabited property on 4" Street in the CCE Project Area has a damaged front door and broken windows and lacks adequate weather protection. Furthermore, its damaged foundation has caused the walls to start leaning which is a serious structural problem. Several of the windows on the buildings are not completely boarded up, which allows weather, vandals, or squatters to access the property. 40 CCE Project Area �i y. Picture 39:This property is located on 0 Street in the CCE Project Area. Damage to the property's porch is evident in the photograph above and has led to the cracks at the base of both columns supporting the roof over the front porch. This is a serious concern for anyone entering the property as the structure is at risk of collapse. This property also lacks proper weather protection and is susceptible to further deterioration. 41 CCE Project Area Picture 40:This property on 4'" Street in the CCE Project Area lacks adequate weather protection, has a severely damaged and deteriorating roof, cracking eaves, and a cracked fagade. These blighting conditions will worsen with time and further exposure to the elements without immediate repair. 42 CCE Project Area O Picture 41:This property on Court Street in the CCE Project Area suffers from damaged roofing materials, leaving the house vulnerable to bad weather. Weather damage can lead to further deterioration, mold, and wood rot which may cause the home to become uninhabitable. 43 Central City South Project Area 44 i CCS Project Area Picture 42:This commercial property on Rialto Avenue in the CCS Project Area has exposed open ended electrical wires, a serious fire hazard. The property also has a substandard drainage system for the rooftop air conditioning units, and damaged roofing materials and eaves. These conditions can lead to quickly progressing deterioration of the building. 45 CCS Project Area N PA i 1 M Pictures 43a and 43b: This property on Cluster Street in the CCS Project Area has cracked eaves and the wall just right of the garage door has been damaged making the structure vulnerable to weather damage. In addition, the owner is storing scraps and various debris onsite which creates a fire hazard as well as an eyesore. 46 CCS Project Area Picture 44:The roof of this structure on Congress Street in the CCS Project Area is severely damaged and sagging. This can be a sign of serious structural damage and can lead to a building collapse. 47 CCS Project Area r t Picture 45:This property on G Street in the CCS Project Area is being used to store tanks and/or the steel drum barrels which are leaking liquids into the right-of-way, which is a safety hazard for pedestrians. 48 CCS Project Area t { x Picture 46:A trailer is being used as a possible living space at the back of an industrial lot in the CCS Project Area. The converted living space is an incompatible use for the lot and was probably constructed with proper permits. Without permitting, there is no guarantee as to the structural integrity of the building. The structural soundness of the structure is further called into question by the deteriorating and sagging front porch. 49 M CCS Project Area n' q�. Plfti Picture 47:This vacant commercial property on E Street in the CCS Project Area has open ended electrical wires which are protruding from the top of the wall, which appear to be left over from the removal of an electrical sign. This is an electrical and fire hazard. 50 CCS Project Area i i ,X Picture 48:This property on E Street in the CCS Project Area has broken windows which do not provide proper weather protection and are in need of repair. Inadequate weather protection can lead to further deterioration of the building. 51 CCS Project Area a wli Picture 49:Trailers on this lot on Stoddard Avenue in the CCS Project Area appear to be used for residential purposes and do not adhere to zoning codes, which are in place to protect the health and safety of the public. Additionally, the property is being used for outdoor storage of inoperative vehicles which is a fire hazard. 52 CCS Project Area vp Picture 50:This structure on E Street is the CCS Project Area is poorly constructed using substandard exterior building materials. The structure is also missing portions of its siding. These conditions do not offer the building necessary weather protection. 53 CCS Project Area S y. At Picture 51:The roof over the carport of this property on Velarde Street in the CCS Project Area is warped and sagging and its integrity is a concern. Should further weakening occur, danger of collapse becomes an issue for the property's occupants. 54 CCS Project Area ,s y e' ^} r .n Picture 52:This property on Berkeley Avenue in the CCS Project Area has substandard exterior plumbing, as its water heater is completely exposed. It is required that exterior water heaters have an protective structure. This is a safety hazard for the residents of the property. Additionally, the occupants are storing various objects, scraps, and debris along the walls of the house, a major fire concern. 55 CCS Project Area i Pictures 53a and 53b: The plywood shack standing in the back corner of this lot on Berkeley Avenue in the CCS Project Area appears to be used as a living space, as a small air conditioning unit has been installed onto one of its walls. This is a violation of the zoning code. The plywood sheets are untreated and therefore do not provide adequate weather protection. Lastly, debris and scraps take up most of the available space of the yard creating a clear fire hazard and risk to public health and wellbeing. 56 CCS Project Area Picture 54:This property is located on Mill Street in the CCS Project Area. By storing tires and wheel rims outdoors, the business at this property is blocking the available loading areas for the building and creating a fire hazard. 57 CCS Project Area Picture 55:The property shown in the three photographs above is located on E Street in the CCS Project Area. There are large cracks running along the base of its walls and in the structure's foundation. This is a sign of serious structural issues. The building's eaves and overhangs are also damaged and deteriorating, falling out of alignment and, severely peeling, providing little weather protection for the structure. 58 I CCS Project Area � A+� ��• 'fix• { Y e x Pictures 56a and 56b: The doors on this property on E Street in the CCS Project Area have been replaced using sheets of plywood. This makeshift door offers little weather protection and security for the building. In addition, the building appears to be vacant. High vacancy rates can attract crime, lead to further deterioration of the neighborhood and deter future private investment. 59 CCS Project Area � Y Picture 57: This building on Oak Street in the CCS Project Area has broken roofing tiles which expose the under layers of the roof to the elements and increase the chances for water damage and further deterioration. The building also has a broken window that needs to be repaired. Broken windows not only offer little protection from the weather but also show lack of private investment in an area. 60 x sY. ro x ' i + r v cx will 11 t,F CCS Project Area gill[ Y z 1 I f . Pictures 58a, 58b, 58c, and 58d: This mobile home park on Stoddard Avenue in the CCS Project Area has a number of issues with various units and the park office, as seen in the four photographs above. The roof of the office is deteriorated and rusted and beginning to sag and buckle. Unit 38 has a broken porch rail and a hole in the trailer's wall. The roof of unit 21 is deteriorating and appears to be rotting or growing mold. These are all conditions that are dangerous for the residents of the mobile home park. 62 CCS Project Area ANAM j „ :x 63 CCS Project Area . � f • t� H +1 t £_ t. Pictures 59a and 59b: The two photographs above are from a liquor store on Arrowhead Avenue in the CCS Project Area. The store is connected to a poorly constructed addition in the back of the lot. This addition has been constructed using corrugated metal sheets as walls and has damaged plywood blocking off a missing portion of wall above one of the doors. Additionally, as seen in the photo above, the back door of the building appears to be permanently closed, posing a safety threat to occupants during a fire. Generally, the structure appears to be is a state of extreme disrepair making it very dangerous for anyone that inhabits or enters the building. 64 CCS Project Area , , M paS Ihwud� Picture 60:This house on Arrowhead Avenue in the CCS Project Area has sustained major damage to its exterior wall exposing the structure's insulation and frame. If a building's insulation and framing gets exposed to natural elements such as rain, they can easily rot, grow mold, or become weakened, threatening the entire structure. 65 Y. CCS Project Area r CCS Project Area J f t r I Picture 61a and 61b: The large support beams running through this property on Mill Street in the CCS Project Area have developed prominent cracks and require repair and new weather protection. Without repair,the beams are subject to bad weather and decay. This property also contains a storage shed on the back of the lot which is severely deteriorated. 67 CCS Project Area i .r 4 r. Picture 62:This parcel is located on D Street in the CCS Project Area. Inoperative vehicles, boxes, and wood pallets litter the parking lot of this property. This is a serious fire hazard to the building and its surrounding parcels. 68 CCS Project Area Picture 63: This vacant warehouse on Mill Street in the CCS Project Area has plywood sheets in place of windows. Plywood is an example of substandard building materials and cannot be relied on for sufficient weather protection. 69 CCS Project Area FOR SSAALEE LEASE AVAILABLE 684-4400 w r . . r AVAII 684.4400 rt ESA IGSE+ ID.9105F AVAILABLE A 684-4400 A ....N JOHNS Pictures 64a, 64b, 64c: This newly constructed commerciattindustrial buildings off Orange Show Road in the CCS Project Area contains a number of vacant units. High vacancy rates deter private investment. 70 Southeast Industrial Park Project Area 71 SUP Project Area " ;: w 4 _ .aryl%!Fh A� Picture 65:According to city staff, this vacant car dealership on Camino Real in the SEIP Project Area has been uninhabited for up to two years. This is an extreme example of the loss of investor interest within the project area. 72 SEIP Project Picture 66: Vacant �Y V o dealerships, such as this one on Camino - Project Area pose a challenge for reuse. SEIP Project Area r....-7 Picture 67: Here is another example of a closed auto dealership in the SEIP Project Area. Such commercial properties can contribute to an ailing local economy and remain a challenge for reuse. 74 SEIP Project Area Picture 68:This vacant commercial property on Showcase Drive in the SEIP Project Area is being used to store an inoperative vehicle within view. An eyesore such as this can negatively impact surrounding property values. 75 SEIP Project Area .411,16 I USED VEHICLES Jeep Picture 69: This is another example of a vacant auto dealership within the SEIP Project Area. This property is located on Showcase Drive. 76 SUP Project Area Picture 70:Widespread commercial vacancies, such as these in the SEIP Project Area prevent economic growth. Strategies to attract and retain businesses should be implemented to prevent adverse economic conditions. 77 SEIP Project Area '4 Picture 71:This bank owned commercial building in the SEIP Project Area is using the front parking lot for outdoor storage of inventory. This is a fire hazard for the building and surrounding neighborhood. 78 SEIP Project Area •• r • ,r r 6 •rr r r r . r . r r L � r Picture 72:This property in the SEIP Project Area has cracked and deteriorating eaves and overhangs, it also appears to have dry rot on its walls. This kind of decay can affect the overall building and lead to further deterioration. This building is required for effective redevelopment. r� 79 SEIP Project Area .e i s { Picture 73:This office building in the SUP Project Area appears to be vacant and is currently for sale. Vacant buildings attract crime and discourage private investment in an area. 80 SEIP Project Area gyp;i Picture 74:The SEIP Project Area contains a number of vacant commercial and industrial properties such as this one on Riverview Drive. 81 SEIP Project Area rj 4 1 I II Picture 75:This is another vacant property within the SEIP Project Area. This building is located on Riverview Drive. 82 SEIP Project Area 1 �rnr' Picture 76:The lot of this property on Victoria Avenue in the SEIP Project Area is excessively cluttered with various objects and equipment. Cluttered storage such as this presents a serious fire hazard and indicates that the building is not large enough for its purpose, showing obsolescence. 83 SEW Project Area [ ,7 x x,r • , Picture 77: This structure on Tippecanoe Avenue in the SEIP Project Area has a hole in one of its walls and the lot is being used for the storage of scraps and equipment. 84 SEIP Project Area F� ;I t Fuca c.. IN _ y VJ M h Pictures 78a and 78b: This property on Tippecanoe Avenue in the SEIP Project Area has excessive amounts of wood pallets, containers, and cardboard being stored in plain view. Such conditions constitute a fire hazard and pose access challenges for emergency crews. 85 SEIP Project Area ;S 1 � I Picture 79:This lot on Gage Street in the SEIP Project Area is being used for the storage of debris, garbage, equipment, and scraps. Improper storage like this presents a fire hazard. 86 SUP Project Area 5 Picture 80:The amount of wooden scraps and pallets being stored outside of this property on Gage Street in the SEIP Project Area constitute a fire hazard. 87 SEIP Project Area Picture 81: This parcel located on Gage Street in the SEIP Project Area, contains a large drum container containing a brown liquid which is being stored outside next to wood pallets and a red fuel container. This outdoor storage raises concerns for safety of anyone who may enter the property and also creates a fire hazard. 88 South Valle Project Area 89 South Valle Project Area n. Now tEASINO Picture 82:This vacant commercial property on Waterman Avenue is an example of the many available properties within the South Valle Project Area. 0 90 South Valle Project Area " Picture 83: This vacant property on Club Center Drive in the South Valle Project Area was once occupied by Costco, which moved to a new location in 1998, potentially leaving the building vacant for over 10 years. Large, vacant parcels such as this pose a challenge for redevelopment. ,.1 91 South Valle Project Area r a AVAILABLE go 989-7771 AGNES•HIGHLEV 1 / } Picture 84:This old car wash on Redlands Boulevard in the South Valle Project Area is currently vacant. In this area, such a use is obsolete. 92 South Valle Project Area It Picture 85: This vacant property on Redlands Boulevard is in the South Valle Project Area and shows a lack of investor interest. 93 South Valle Project Area .:,rte... .. .. Picture 86:This property on Caroline Street in the South Valle Project Area is zoned for heavy industrial use, however, a residence is also present. These two uses are incompatible and pose health and safety threat to the residents of the home. Additionally, there is outdoor storage of inoperative vehicles. ti.. 94 South Valle Project Area r Picture 87:This lot, on Caroline Street, in the South Valle Project Area is being used for illegal dumping of garbage, furniture, and debris. Improper disposal of garbage can become a health and safety hazard. J 95 South Valle Project Area a � a .. Picture 88: The structure, located on Caroline Street in the South Valle Project Area, has a sagging roof due to deteriorated roof supports. This condition indicates a compromised structural integrity and requires immediate repair. 96 South Valle Project Area 31 Picture 89:This abandoned structure on Caroline Street in the South Valle Project Area has a broken window, is missing a door, and therefore lacks adequate weather protection. The structure is not secured properly and could be attractive to vandals. 97 South Valle Project Area Y, Picture 90:This poorly constructed structure in the South Valle Project Area is not adequately protected from the weather and runs the risk of becoming weakened by the elements. Additionally, this lot is being used to store wood, a trailer, and other items in plain view. 98 South Valle Project Area i f Picture 91:This residence, located on Caroline Street in the South Valle Project Area has a roof which is beginning to show signs of dilapidation as tiles are coming up and away from the structure. This in turn exposes the house to weather conditions. 99 ,m South Valle Project Area `l Y 0 A b r Vic: 3 • - Picture 92:The eaves and roofing materials of this home on Caroline Street in the South Valle Project Area are deteriorated indicating a lack of adequate weather protection. Also, there is a poorly constructed addition at the back of the building which could be unsafe to occupants. 100 South Valle Project Area 1 Picture 93:The broken windows and doors on this building on Caroline Street in the South Valle Project Area leave it vulnerable to the elements as well as further deterioration. Outdoor storage visible on this property is an eyesore and can negatively impact property values in the area. 101 South Valle Project Area c, r r i. r Y J r w � _ Picture 94:The severely deteriorated roof and broken windows seen on this structure on Caroline Street in the South Valle Project Area offer inadequate weather protection and indicate a lack of investment in the property. In addition, deteriorated eaves and overhangs combined with the deteriorating roof call into question the structural integrity of the building. 102 South Valle Project Area O Picture 95:This home on Caroline Street in the South Valle Project Area displays broken and rotted exterior wood panels causing water to seep into the interior of the home and lead to further damage. 7 103 South Valle Project Area Picture 96:This property is located on Gardena Street in the South Valle Project Area. The outdoor washer/dryer and water heater indicate substandard exterior plumbing that does not meet citywide plumbing standards. Moreover, there is a poorly constructed addition on the house. 104 I South Valle Project Area v it U. I Al i t i Picture 97:There are damaged and deteriorated exterior building materials on this `•/ structure on Gardena Street in the South Valle Project Area. Combined with broken windows and doors, the weather protection on the house is insufficient. In addition, the building is boarded up and appears uninhabited which could bring vagrants and increased crime to the area. 105 South Valle Project Area i t CWIWI.' LWA MA :�:��i�i:�ss�: �i����A;�► Rk www . Picture 98:The broken and boarded windows on this building on Gardena Street in the South Valle Project Area leave the structure susceptible to weather damage and further decay. The fencing and signs are evidence that the property is vacant. Vacant homes are havens for crime and deter investment in an area. 106 South Valle Project Area A7 t Picture 99: The residence on this parcel is incompatible with the industrial storage and production in the rear of this property on Gardena Street in the South Valle Project Area. The current zoning for this property if heavy industrial, having a residence in the middle of a heavy industrial area poses a health and safety risk to its residents. Additionally, there is no access to the back of the lot, which could pose a health and safety threat if a fire were to start. 1 107 South Valle Project Area Picture 100:The overhang and eaves on this building on Gardena Street in the South Valle Project Area are extremely damaged and in some places hanging or sagging. This not only offers poor weather protection, but the faulty structural elements put someone entering the building at risk of serious injury. Garbage, debris, and combustible materials scattered about the site also pose a risk to public safety. 108 South Valle Project Area ^3 i 9 Picture 101:The roof on this structure on Gardena Street in the South Valle Project Area is damaged and sagging. This allows water to seep into the interior of the building and cause additional damage. The condition of the roof is a sign of neglect and a lack of investment in the property. 109 South Valle Project Area Jim �r. Picture 102:This site on Gardena Street in the South Valle Project Area contains both a residential dwelling and industrial storage and production. The current zoning code would not allow residential and industrial uses to be constructed on the same parcel, indicating these uses are unpermitted or an existing use. In addition, the structures on the site are dilapidated and damage and potentially harmful to inhabitants. 110 South Valle Project Area ail f Picture 103:The roof on this structure on Caroline Street in the South Valle Project Area is lacking adequate protection and is sagging. Combined with the deterioration on the exterior of the building, the structure is not properly protected against the weather. 111 South Valle Project Area Picture 104:The overhang on the side of this home in the South Valle Project Area is damaged and rotting and is broken in the middle. In addition, the roofing materials on the overhang have deteriorated and are peeling off. The overhang offers little protection against the weather and poses a safety threat to anyone who may be around it, due to an elevated risk of collapse. 112 South Valle Project Area Jwy /1 . r_ • r�7 .. iY• � Picture 105:An entire section of this structure on Caroline Street in the South Valle Project Area has been boarded-up with plywood, indicating that it is vacant and may have structural problems. If this building is not repaired it can deteriorate quickly and negatively impact property values in the surrounding area, as well as, pose a health threat to any future residents. 7 113 South Valle Project Area Y4' Picture 106:Broken windows and doors on this home on Artesia Street in the South Valle Project Area do not prevent water from entering the interior space and causing damage. The exposed wiring seen outside is an electrical hazard and can lead to fire or electrocution. In addition, the structure on the right appears to be a garage or storage area that was converted to a living space. Structures converted to living spaces without proper permitting are dangerous to inhabit because there is no way to guarantee the structural integrity and safety of the building. 114 South Valle Project Area J 3 Picture 107:This site located on Artesia Street in the South Valle Project Area is being used to store cargo containers and old, abandoned cars. A storage site such as this can attract crime and deter investment in the area. Additionally, these items pose a fire hazard and can serve as home to vermin and insects, posing a health and safety threat to anyone who may enter the property. -I'1 115 South Valle Project Area WWRIN i Y Picture 108:This property is located on Artesia Street in the South Valle Project Area. Besides being used as a storage site for industrial materials, garbage, and debris, potentially hazardous materials are visible. 116 South Valle Project Area r 4 Picture 109:This site located on Artesia Street in the South Valle Project Area appears to have become a storage space and dumping ground for garbage, debris, burned-out vehicles, and other dangerous materials. 117 South Valle Project Area JAM i lyyJ i r w v w -T Picture 110:The overhang on this home on Artesia Street in the South Valle Project Area is broken and deteriorated. The overhang provides poor weather protection and is structurally unsound. 118 South Valle Project Area s, r t YI raW -- . ; 61 1 A W&L r> Picture 111:This building on Artesia Street in the South Valle Project Area looks as though it was converted into a living space. An inhabited addition that was not properly constructed and not permitted can be dangerous to anyone entering or living in it. In addition, the roof needs to be replaced in order to offer proper weather protection. 119 South Valle Project Area AW 7 A4s ,4i e f tt�'' 'vQ►:�,, C � ' 4 ♦. A Picture 112:This building on Artesia Street in the South Valle Project Area is missing a door which offers little to no protection against natural elements. In addition, the site contains two buildings, one that may have been illegally constructed posing a risk to anyone that enters it. 120 South Valle Project Area it �SF•, lit �t1 Picture 113:This poorly constructed structure on Artesia Street in the South Valle Project Area is deteriorating and does not offer proper weather protection. It appears that structural integrity is lacking because the support columns appear inadequate to hold the roof, which is sagging. 121 South Valle Project Area Picture 114:This site on Artesia Street in the South Valle Project Area has a build up of garbage and debris. Piles as discarded materials such as this can be a serious fire hazard. 122 Tri-City Project Area 12J Project Picture 115:This building on Brier Drive in the Tri-City Project Area remains vacant after r � + r 8 ♦ w J� T' 4. losing its tenant • - to relocation. Th^City Project Area Picture 116:ThiS relatively new structure 0n Vanderbilt Way in the Th-Cbv Project Area sits vacant. High numbers 0f vacant properties in8O area can deter future investment. 125 Tri-City Project Area 3 al a fl " 1 1 Pictures 117a, 117b, and 117c: The properties photographed above which are located on Harriman Place are examples of the many vacancies in the Tri City Project Area. 126 Appendix 2 Summary of Code Enforcement Violations that Affect Health and Safety n - � a �y 3 8 $o , oo°a W g a & rNNBmNrvmnrvN � � N �, gMnn � nnaRm 'BmB � ,M, mn � mnm � � 5 VV gQ O C N O O O O O O S . . . . . . . . . . . N O n n . . . . . . . . . s"a eeN � U> � n � S M ag8g � �m, ' � 8q .m, o 88888g88SS88S Y. SSSnBR'in PamiogSnBnoSS 3 y - . o o - e rv - e 03 �$ tl � R & 8wm8888m8 °n° 88 ° 88 � n88aRe ° A � w88w8 � 888 y a �a x" a e" j � u $ 8Nm8 E3Ve o v s O N 2 � LL `o u� ti z , xx � » o os � og "gYPYL . � � °� a3Ea3 °y ; -"ac5 & E55 em xxxxxx $ U o ° �°= $ � 8y8� 88 ` E mW .• -.,. N 0 n ¢ 3 m m m 0 0 0 O O d O O � � W LL u � 2 � 2 S = ) ! I 7RR , »5! � � � . , ! , ! . . . . . . . . . . . . . . . . . . . . . . . . . ! f !| / . ! ! , , • - � | . ! ! � - _ ! | ; : . ( ! / ! . ! ! . { r • . ! ! !f{ {E / { � . , , , , l ; . l ; ! {) ! !! : ! § ! ! • _ | © ! ! \ \ \ ,; ; ; ! ! ! ! Appendix 3 Pro Forma Assumptions Appendix 3 - Pro Forma Assumptions San Bernardino Merged Area A Site Characteristics Lot Size The pro forma for the lot which does not meet size requirements used the median lot size for those lots which did not meet size requirements within the specific zoning category. The pro forma for the lot which does meet size requirements used the minimum allowable lot size,as found in the Development Code Parking Ratio Parking ratios were taken from the Development Code and are based on the size of the building. Building Size Building size was calculated based the maximum building which could be constructed on the lot while still meeting parking requirements. The lot coverage maximum was also looked at to verify the buildings were within the requirements. Costs Acquisition Acquisition costs are based on recent sales within the City for similar land uses, zoning categories, and property types. Recent sales were accessed using First American Title MetroScan Information Service. Construction Costs Marshall and Swift Valuations were used to estimate building shell costs for both the industrial and commercial uses. On-site, off-site, financing and other indirect costs were generated from current market rates or RSG's database for like expenses. Income Lease Rate Lease rates were based on information obtained through CBRE, Colliers International,and LoopNet for comparable properties in the City. Vacancy Percent Vacancy rates was estimated using current market reports from CBRE, Colliers International, and Grubb&Ellis and adjusted to reflect increasingly stable market conditions over the next several years. Operating Expenses/ Operating expenses were based on current market rates and RSG's experience Management/Reserves with projects of the proposed scope and scale. Capitalization Rate Capitalization rates was based on information from the California Real Estate Journal and the Urban Land Institute's Emerging Trends in Real Estate 2010. These rates were adjusted to account for market area specifics and increasingly stable market conditions over the next several years. Appendix 4 Five Year Implementation Plan FY 09/10 through FY 13/14 ":;=sue FW t� FIVE YEAR IMPLEMENTATION PLAN REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FY 2ooq-io THROUGH 2013-14 ADOPTED DECEMBER 7,2009 BY CDC RESOLUTION NOS. 2009-65 AND 200966 Economic Development Agency j!ll TFV17 Zrrr + Su Bens iu I San Bernardino Redevelopment Agency Five Year Implementation tt t through 2013-11 SAA YAtA IN TABLE OF CONTENTS INTRODUCTI ON..........................................................................................................................i About This Implementation Plan........................................................................................................i LegalAuthority...............................................................................................................................................1 Objectives of the Implementation Plan.........................................................................................................1 Organizationof the Document.......................................................................................................................2 SECTION I: OVERVIEW&BACKGROUND ..............................................................................3 ABOUTREDEVELOPMENT........................................................................................................................4 The Public Value&Benefit of Redevelopment...................................................................................4 Whatis Redevelopment?................................................................................................................................4 Roleof Redevelopment...................................................................................................................................4 Blight...............................................................................................................................................................5 Tax Increment Financing.. 6 20 Percent Housing Set-Aside..................................................................................................................6 Pass-Through Payments.............................................................................................. 6 ............................. State Takeaways—SERAF Payments...................................................................................................... 7 Debt Service Payments and Discretionary Funds..................................................................................... 7 Whatis a Redevelopment Plan?....................................................................................................................9 ABOUTTHE AGENCY..............................................................................................................................10 History and Profile.............................................................................................................................to Mission ..........................................................................................................................................................10 History...........................................................................................................................................................10 ProjectArea Descriptions.............................................................................................................................14 MergedCentral City Projects.................................................................................................................. 14 CentralCity North.................................................................................................................................... 14 CentralCity West.................................................................................................................................... 15 StateCollege........................................................................................................................................... 15 SoutheastIndustrial Park........................................................................................................................ 15 Northwest................................................................................................................................................ 16 Tri-City..................................................................................................................................................... 16 SouthValle.............................................................................................................................................. 16 Uptown .................................................................................................................................................... 17 Mt. Vernon............................................................................................................................................... 17 40"Street................................................................................................................................................ 17 ACCOMPLISHMENTS...............................................................................................................................18 Achievements in Community Revitalization...................................................................................is SECTION II: REDEVELOPMENT STRATEGIC PLAN.............................................................22 REDEVELOPMENTPLAN GOALS...........................................................................................................23 Community Reinvestment and Revitalization.................................................................................23 STRATEGICPLANNING..........................................................................................................................25 Strategic Objectives and Regional Strategies...................................................................................25 StrategicObjectives......................................................................................................................................25 i San Bernardino Redevelopment Agency Five Year implementation Plan; FY rt• r through 2013-14 $il Bena IM Plansand Policies................................................................................................................................... 25 Public Infrastructure and Facilities.......................................................................................................... 26 CatalyticProjects..................................................................................................................................... 26 Regional Strategies and Work Programs....................................................................................................27 REDEVELOPMENTWORK PROGRAM....................................................................................................s9 Western Project Areas........................................................................................................................s9 Eastern Project Axe as.........................................................................................................................42 AllProject Are as.................................................................................................................................SS SECTION III: HOUSING COMPLIANCE PLAN........................................................................64 INTRODUCTION.......................................................................................................................................65 Overview of the Housing Compliance Plan......................................................................................65 IVDA Project Area and Housing Policy with the Agency...........................................................................66 AGENCY'S FIVE YEAR AFFORDABLE HOUSING GOALS....................................................................67 Community Affordable Housing Focus.............................................................................................67 AGENCY AFFORDABLE HOUSING FIVE YEAR STRATEGY................................................................67 Affordable Housing Strategic Programs...........................................................................................67 Affordable Housing Work Program.............................................................................................................68 AFFORDABLEHOUSING COMPLIANCE................................................................................................71 Blueprint for Agency Housing Activities.........................................................................................71 HousingProduction......................................................................................................................................71 ReplacementHousing...................................................................................................................................76 HousingProgram Cash Flow Anal ysis........................................................................................................77 Expenditures by Household Types..............................................................................................................79 Prior Five Year Housing Fund Expenditures.............................................................................................80 Units Assisted by Housing Set Aside Fund............................................................................................. 80 Housing Units Constructed During Prior Implementation Plan Without Housing Set Aside Funds........ 82 APPENDIX 1: PROJECT AREA TIME AND FINANCIAL LIMITATIONS..............................................83 APPENDIXx: GLOSSARY OF HOUSING TERMS...................................................................................91 APPENDIX3: HOUSING PRODUCTION TABLES..................................................................................97 APPENDIX4: INCLUSIONARY HOUSING UNIT INVENTORY .........................................................102 APPENDIX 5: REPLACEMENT HOUSING TABLES.............................................................................IDS APPENDIX 6: DECEMBER 7,zoo9 PUBLIC HEARING WRITTEN t3 VERBAL COMMENTS..............118 ii San Bernardino Redevelopment 200 9-10 througb 2013-14 Jao heroar iw SAN BERNARDINO—GROWING LOCALLY AND GLOBALLY "The City of San Bernardino Economic Development Agency is a focused, diversified organization whose mission is to enhance the quality of life for the citizens of San Bernardino by creating jobs, eliminating physical and social blight, supporting culture and the arts, developing a balanced mix of quality housing, along with attracting and assisting businesses both independent and through public-private O partnerships." San Bernardino Economic Development Agency 201 North"E" Street, Suite 301 San Bernardino , CA 92401-1501 (909) 663-1044 www.sbrda.org 111 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 200 9-10 through 2013-14 &� M INTRODUCTION About This Implementation Plan Every five years, redevelopment agencies are required to adopt implementation plans that establish five-year operational and financial work programs for carrying out the redevelopment and affordable housing responsibilities of the agencies. This Five Year Implementation Plan ("Implementation Plan") for the San Bernardino Redevelopment Agency ("Agency") covers the five-year planning period for fiscal years 2009-10 through 2013-14, and serves as a consolidated Implementation Plan for all 14 of the Agency's redevelopment project areas ("Project Areas"). This Implementation Plan also contains an Update to the Agency's Housing Compliance Plan ("Housing Compliance Plan") for meeting the Agency's affordable housing requirements for the current 10-year compliance period (FY 2004-05 to 2013-14), including obligations for producing, replacing, and expending funds for affordable housing. LEGAL AUTHORITY In 1993, the Legislature passed Assembly Bill 1290 (Chapter 942, Statutes of 1993), which enacted the California Community Redevelopment Law Reform Act and made sweeping changes to state redevelopment law (Health and Safety Code Section 33000 at seq.) ("CRL") in a major effort to increase both the effectiveness and accountability of redevelopment agencies. One notable statutory change was the addition of Article 16.5 (Section 33490 at seq.) to the CRL, which required redevelopment agencies to adopt five year implementation plans for all Project Areas on or before December 31, 1994, and every five years thereafter. CRL Section 33490(a) requires that the Implementation Plan contain: • The Agency's goals and objectives, programs, and projects within the Project Area for the next five years, including estimated expenditures. • An explanation of how the goals and objectives, programs, projects, and expenditures will eliminate blight and promote affordable housing within the Project Area. • A specific section that addresses the Agency's housing responsibilities, including the Agency's Low and Moderate Income Housing Fund ("Housing Fund")and the Agency's requirements for producing and replacing affordable housing. Given these required contents, the Implementation Plan can naturally serve as more than just a compliance document to adhere to the legal mandates of state law. The Implementation Plan provides the Agency an opportunity to thoughtfully craft a purposeful and deliberate strategy for the next five years. OBJECTIVES OF THE IMPLEMENTATION PLAN The Agency's objectives for this Implementation Plan are to: • Establish focused redevelopment and housing strategies for the next five years that provide a roadmap for decision-making about resource allocation, budget, and community engagement. • Create an administrative management tool for Agency staff that provides a measurable, track-able, and programmatic work plan for the execution of the Agency's operations. • Provide educational and informative background about the role, powers, and tools of redevelopment agencies, and a historical overview of the Agency, its accomplishments, and the 14 Project Areas. 1 San Bernardino Five Year Implementation 11 1 through 2013-14 L • Furnish data and information to fulfill the affordable housing compliance requirements of the CRL. ORGANIZATION OF THE DOCUMENT The contents of this Implementation Plan are organized into three distinct sections: • Section I: Overview and Background. This section provides a narrative overview and background description of redevelopment in California, and a profile description of the Agency and the 14 Project Areas. • Section II: Redevelopment Strategic Plan. This section outlines the Agency's redevelopment strategic plan for the next five years, including a comprehensive work program of projects and programs. It presents a new approach to the development of the Agency's five-year work program of redevelopment projects and programs. The work program is geographically organized into two regions of the City: (1) Area B, which contains Project Areas generally located west of the I-215 Freeway; and (2) Area A, which contains Project Areas generally located east of the 1-215 Freeway. The projects and programs contained in the work program represent the strategic priorities of the Agency. The future implementation of each project or program is subject to funding availability and approval by the Agency., • Section III: Housing Compliance Plan Update. This section contains the Agency's update to the housing compliance plan for the current 10-year compliance period (FY 2004-05 to 2013-14), including the production, replacement, and expenditure of funds for affordable housing. This section fulfills the requirements of CRL Sections 33413(b)(4)and 33490(a). 'CRL Section 33490(aX 1)(B)provides that the adoption of an implementation plan shall not constitute an approval of any specific program, project,or expenditure and shall not change the need to obtain any required approval of a specific program,project,or expenditure from the agency or community. - 2 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 2009-10 through 2013-14 yeNena ix SECTION I: OVERVIEW & BACKGROUND Redevelopment By the Numbers: $40.79 billion. Redevelopment's economic contribution to California in 2006-2007. $13. Every$1 of redevelopment agency spending generates nearly$13 in total economic activity. 303,946. Full and part time jobs created in just one year(2006-2007). 78,750 units of affordable housing built or rehabilitated since 1995 by redevelopment agencies. 18,522 units of low and moderate income housing expected to be built or refurbished over the next two years. $2 billion. State and local taxes generated through redevelopment construction activities in 2006-2007. 20%of property tax revenues generated from redevelopment activities must be used to increase supply of affordable housing. 2nd largest finder of affordable housing in California after the federal government. Source: Califomia Redevelopment Association 3 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 Sa'kerl iw ABOUT REDEVELOPMENT The Public Value&Benefit of Redevelopment WHAT IS REDEVELOPMENT? Redevelopment is a process created to assist city and county governments in eliminating blight from a designated area and to achieve the desired _ development, reconstruction, and rehabilitation of residential, commercial, and industrial uses. Redevelopment agencies possess unique tools to ~ directly influence the private sector, reduce investment ' risk, and create or boost market confidence. Some of the tools available to redevelopment agencies include: 1174 • Use of tax increment financing to fund public improvements and use of gap financing provide AdW AN financial assistance to qualifying developers for qualifying projects. MAIN .21;1 • Authority to acquire real property, and if necessary, use of eminent domain. • Relocation assistance and replacement housing. • Mitigation of environmental liabilities to property owners and developers through the Polanco Redevelopment Act (Health and Safety Cade Sections 33459-33459.8). Although these tools can jumpstart the revitalization process, by law, redevelopment is limited to areas of a city that are in a state of decline and are physically and economically blighted. To initiate redevelopment, the agency must satisfy certain requirements. These requirements are as follows: • Establishment of a Project Area(s) in parts of a city that are physically and economically blighted. • Establishment of debt as a prerequisite to the collection and expenditure of tax increment. • Set aside 20 percent of tax increment revenue to increase, improve, and preserve the supply of housing for low-and moderate-income persons and families. • At least 15 percent of all new and substantially rehabilitated dwelling units must be affordable to, and occupied by, persons or families of very low, low, and moderate income. Satisfying these requirements, redevelopment agencies can use their tools to catalyze the revitalization of urban areas. Once redevelopment efforts establish momentum in the market, the private sector can then dictate its own course, thereby benefitting residents, business-owners, and visitors. ROLE OF REDEVELOPMENT In 1945, the State of California enacted the California Community Redevelopment Law (Health and Safety Code Sections 33000 at seq.) ("CRL") to combat the deterioration of property and its effects on the tax base. Through the Redevelopment Act, cities were given authorization to establish redevelopment agencies which would have the legal authority and special tools to combat urban decay, or "blight." In 1952, California voters adopted Article XVI, Section 16 allowing tax increment financing to be used by the agencies for the redevelopment of blighted communities. 4 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 2009-10 through 2013-14 Stlllena IM The goal of redevelopment to create safe and economically vibrant communities has remained steadfast since 1945. The mission of the Agency is to "enhance the quality of life for the citizens of San Bernardino by creating jobs, eliminating physical and social blight, supporting culture and the arts, developing a balanced mix of quality housing, along with attracting and assisting businesses both independent and through public-private partnerships." BLIGHT The CRL emphasizes redevelopment's role in eliminating blighting conditions in communities and takes great lengths to define blight. As defined by the CRL, blight constitutes physical and economic liabilities that affect the health, safety, and general welfare of a community. CRL Section 33030 describes a blighted area as being predominantly urbanized and substantially affected by the physical and economic properties of blight to such an extent that the community cannot reasonably be revived without redevelopment. Ji The CRL describes the physical and economic conditions that cause blight as follows: Physical Conditions (CRL Section 33031(a)) • Buildings with serious code violations, dilapidation, or deterioration such that it is unsafe or unhealthy for a person to live or work. • Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots. • Adjacent or nearby incompatible uses that prevent development. • Existence of subdivided lots that are in multiple ownership loll and whose physical development has been impaired by their Property Not Located in City of San Bemardlno irregular shapes and inadequate sizes. Economic Conditions (CRL Section 33031(b)) • Depreciated or stagnant property values. -a • Impaired property values due to hazardous wastes. • Abnormally high business vacancies, abnormally low 1 lease rates, or an abnormally high number of abandoned buildings in an area developed for urban use and served by utilities. • A serious lack of commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores and banks. Property Not Located in City of San Bernardino • Serious residential overcrowding. • An excess of bars, liquor stores, or adult-oriented businesses that have led to problems of public safety and welfare. • A high crime rate that constitutes a threat to the public safety and welfare. 5 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 2009-10 through 2013-14 Sil Brrl IN J In accordance with the CRL, the existence of blight has been established in each of the 14 Project Areas requiring the use of redevelopment tools though the projects and programs established in this Five Year Implementation Plan. TAX INCREMENT FINANCING Tax increment financing is the primary Figure I-1 source of funding used by agencies to initiate and oversee redevelopment projects and activities in a community. This financing method is based on the assumption that as an area is revitalized, more property tax will be generated. Upon adoption of a Project Area, the total current assessed value of all P, Property Taxes tretv,Assessed Value the properties within its boundaries is designated as the base year value (CRL Section 33328). As assessed values increase in the Project Area, tax increment Base Year Assess�t Establishe revenue is generated by capturing the amount of value added since the base year value was established. This increase in tax revenue, or tax increment, is used by the Agency for reinvestment back into the Project Area. Figure 1-1 above graphically depicts the generation of tax increment in a Project Area. 20 Percent Housing Set-Aside As required by the CRL, 20 percent of tax increment revenue must be set aside into a separate Low and Moderate Income Housing Fund ("Housing Fund") for the creation and preservation of affordable housing within the Project Area (CRL Section 33334.2). These funds may then be used for activities such as acquiring property, constructing on- and off-site improvements related to affordable housing development, constructing or rehabilitating affordable housing Figure 1-2 TO units, providing subsidies to AGENCY ALLOCATION FY 08 FY 13-14 TAX INCREMENT REVENUES ES S ensure affordability, and issuing (GROSS TAX INCREMENT: $162.3 M) bonds. As a result of these requirements, redevelopment agencies are one of the primary SERAF Payments entities producing affordable (FY 09-10 and 10-11) housing throughout the State of Debt SerNCe $14,353,000 California. Payments Projects,Operations, $85,039,586 and Administration Pass-Through Payments $21,022,107 Redevelopment agencies are also required to use tax increment revenue to remit payments to affected taxing Low and Moderate agencies (e.g., school districts, Pass-Through Income Housing Fund community college districts, the Payments to Ta><ing $33,843,355 Entities County) in the Project Area $8,056,660 r� (CRL Section 33328). These 6 San Bernardino Redevelopment Five Year Implementation Plan: FY 2009-10 through 2013-14 payments, known as "pass-throughs" represent 20 percent of the tax increment received which is used to alleviate any fiscal burden imparted on affected taxing entities caused by the redevelopment plan. The taxing entities benefifted by the pass-through payments include counties, cities, schools, and special districts. The CRL prescribes an allocation formula to calculate payments unless the Agency has negotiated pass-through agreements with the taxing entities. State Takeaways—SERAF Payments As shown in Figure 1-2 on the previous page, the Agency is estimating that it will need to set aside approximately $14,353,0002 in fiscal years 2009-10 and 2010-11 for payments to the State's Educational Revenue Augmentation Fund ("SERAF"). As in prior years during the State's fiscal crises, the Legislature is relying on "takeaways" from local governments to help close the State's massive budget gap in the form of revenue shifts. Statewide, $2.05 billion in redevelopment funds will be shifted from redevelopment agencies to SERAF, which is intended to be distributed to schools to meet the State's Proposition 98 obligations to education. $1-7 billion will be shifted in fiscal year 2009-10. $350 million will be shifted in fiscal year 2010-11. The Agency's share is estimated to be $11,900,000 in fiscal year 2009-10 and $2,453,000in fiscal year 2010-11. Debt Service Payments and Discretionary Funds After the Agency's 20 percent set aside to the Housing Fund, pass-throughs to affected taxing agencies, SERAF payments, and approximately $85 million in debt service payments on the Agency's band obligations, approximately $21 million (out of$162.3 million in gross tax increment revenues) over the course of the next five fiscal years will be available to the Agency as discretionary funds for projects, operations, and administration. This does not include other income sources (e.g., interest income, rental income, Inland Valley Development Authority housing funds). Figure 1-3 on the following page provides annual projections over the next five years of the Agency's allocation of gross tax increment revenues toward revenue obligations (e.g., Housing Fund set-aside, pass-throughs, debt service, SERAF) and funding for projects, operations, and administration. As shown in the chart, SERAF payments in fiscal years 2009-10 and 2010-11 will have an immediate impact to funding available for projects, operations, and administration in those years. 2 The Agency previously set aside approximately$2.5 million in FY 2008-09 to make a potential ERAF payment that was included in the State's 2008 budget package. The California Redevelopment Association("CRA")successfully litigated and blocked the 2008-09 ERAF shift. The funds are available to help make the potential FY 2009-10 SERAF payment if CRA's new lawsuit challenging As 26 U is unsuccessful. 7 San Bernardino Redevelopment Five Year Implementation rr r through 2013 �r Benar tw San Bernardino Redevelopment Agency Figure i -3 Annual Tax Increment Allocations FY 2009-10 through FY 2013-14 $40,000,000 ■Projects,Operations,and $35,000,000 Ar n nl ross 7 l t r me nt Pr ' . ions' Administration $32,462,942 $30,000,000 ■SERAF Payments` $25,000,000 ■Debt Service Payments' $20,000,000 - ■Pass-through Payments to Taxng Entities $15,000,000 •Set-As ide to Low and Moderate Income Housing Fund $10,000,000 $5,000,000 Notes: 'Does not include other revenues sources such as interest income,rental income,etc. Assumes 0%annual growth rate. Does not factor in alternative SERAF payment methods. Only includes debt service payments for obligations against tax increment revenues. Does not include transfers to the City. 8 San Bernardino Redevelopment Agency through Five Year Implementation Plan; FY 2009-10 IlY s WHAT IS A REDEVELOPMENT PLAN? The redevelopment plan is a legal framework used by agencies for the long-term planning and implementation of revitalization activities in Project Areas. The plan establishes policies and financing methods to implement projects and sets the basic goals, powers, and limitations of agencies for conducting their redevelopment activities. Below is the general framework within which redevelopment plans are legally bound: • The time limit to establish loans, advances, and indebtedness to be paid with the revenue from property taxes shall not exceed 20 years from the adoption date of the redevelopment plan (CRL Section 33333.2). • Loans, advances, or indebtedness shall be repaid over a 45-year period from the adoption of the redevelopment plan. • The effectiveness of a redevelopment plan shall not exceed 30 years from the adoption date. • After the effectiveness of a redevelopment plan has expired, an agency shall have no authority to act pursuant to the redevelopment plan except to pay previously incurred indebtedness and to enforce existing covenants and contracts. • An agency may commence eminent domain proceedings to acquire property within the Project Area for a period not to exceed 12 years from the adoption date. • If a redevelopment plan authorizes the issuance of bonds, the redevelopment plan shall include a limit on the amount of bonded indebtedness that can be outstanding at one time. • These time and financial limitations may be extended or increased only through an amendment to the redevelopment plan. This Implementation Plan proposes a work program of redevelopment and housing activities that seek to accomplish the goals of the Agency within the legal framework established by the CRL and the Agency's adopted Redevelopment Plans for the 14 Project Areas. 9 San Bernardino "'I' 11 1' Agency Implementation Five Year t t through t ANIL lallkr IN ABOUT THE AGENCY History and Profile MISSION San Bernardino—Growing Locally and Globally "The City of San Bernardino Economic Development Agency is a focused, diversified organization whose mission is to enhance the quality of life for the citizens of San Bernardino by creating jobs, eliminating physical and social blight, supporting culture and the arts, developing a balanced mix of quality housing, along with attracting and assisting businesses both independent and through public-private partnerships." HISTORY The City of San Bernardino Common Council created the Redevelopment Agency in 1958 with the responsibility of initiating and managing redevelopment projects and activities within the Redevelopment Project Areas ("Project Areas") in the City of San Bernardino. The Common Council also established a Community Development Commission ("CDC"), composed of the Common Council Members, to act as the Board of Directors of the Agency. That same year, the CDC adopted the Meadowbrook Project Area, its first Project Area, with 13 additional Project Areas having been adopted since. The original Central City Project Area was adopted in 1965 and subsequently merged in 1970 with Meadowbrook as the Meadowbrook/Central City Project Area. In 1983, the Meadowbrook, Central City, Central City East, and Central City South Redevelopment Project Areas were merged pursuant to Health and Safety Code Section 33476. In 1986, the CDC adopted Ordinances MC-558, MC-559, MC- 563, and MC-564 establishing consistent time and financial limits for those Project Areas. In total, the Agency manages the following 14 Project Areas: 1. Meadowbrook/Central City (2) 2. Central City East Merged Central City Projects (4) 3. Central City South 4. Central City North 5. Central City West 6. State College 7. Southeast Industrial Park 8. Northwest 9. Tri-City 10. South Valle 11. Uptown 12. Mt. Vernon 13. 40th Street The following map depicts the 14 Project Areas. 10 N a m E m 1 � I y 1 1•✓.w ; ` I � � �L r•I.i ry � •� _ i O E IL r,.l.r .i � E o ••ter '1 a _.1 a ° p T ° C C U a r c t ° c m c c c.�' a a o S m a a a oc o n t7 > y O C San Bernardino Redevelopment Agency Amended Five Year Implementation Plan:FY 2009-10 through 2013-14 The Redevelopment Plans for the Project Areas set forth limitations with regard to collecting tax increment revenue, incurring bonded indebtedness, Redevelopment Plan effectiveness, and the use of eminent domain. Appendix 1 presents the time and financial limitations for each project area, including ordinances adopted by the Common Council for amendments to Redevelopment Plans. The following chart graphically illustrates the time limitations on the effectiveness of the Redevelopment Plans for each Project Area. Figure I-5 Effectiveness & T.I. Collection Expiration Dates San Bernardino Redevelopment Agency Stale COkge April 2],2013 Apra 2T,2023 central Cly NNth A.q.ra 6,2016 Aug.-6,2026 Central CM Fasl' May 3,2019 May 3,M29 Central cM Soulh' May 3,2019 May 3,2029 Meatlox WOOWCmlral City' May 3.2019 May 3,20M -- Central City Wasl Nbruary 17,2019 " fibmary 17,2029 SWlheast Nustrlal Park June 21,2019 Jura 21,2029 - OC-fleCliklnes60f Plan Nonhwesl July 6,2026 July 6,2036 01-ast Dateto Receive Tex Increment O ttl CRY Juna 20,2026 June 20,4036 Su6h Valk July 9,"a Jury 9,2036 Uptaa.n Jan.Is."V I Jan.16,2031 M Vernon June 25,MI Juna 26,2061 40th Dreel August 10,2030 'July 10,2016 ' 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 'The Central City MerWProject Nee coMiafs OCentral City EaSr Cerdrel Clty SoMh,an,,M .broo9/ Snn,City Table 1-1 on the following page outlines all of the time and financial limitations of each Project Area as set forth in the respective Redevelopment Plans. 4 12 ■ ° � \ \ \ \ \ \ \ \ \ \ \ \ § x / t § ( \ ( § § \§ ( � | / _ ; f ! G k ƒ ƒ $ EL / k $ ) k k k k ± ! ± W- k } / § # § § § § \ a ! # § § ( \ 0 & \ ) # ( k { { \ �UA { _ k ' : ` ) 0 0 ! $ San Bernardino Redevelopment Agency Fj�e Year Implementation Plan: 11 I through 2013 s� PROJECT AREA DESCRIPTIONS Approximately one-quarter of the City, or 15.7 of 59.3 square miles, is contained within the 14 Project Areas. Descriptions of each Project Area are provided below. Merged Central City Projects Central City Projects is the combination of three Merged Central city Protect Areas Project Areas encompassing 1,008 acres3, which were merged in 1983. The three Project Areas include the Meadowbrook/Central City, Central City East, and Central City South Project Areas. Consolidation occurred to allow for more efficient ftia10 "°°"Oe management of Agency resources. Developments in the merged Project Area include > various administrative offices for federal, state, county and city departments. The 55-acre Lnmd e Seccombe Lake Urban Park and the 136-acre c Icatren National Orange Show fairgrounds are both Q " 4 i A located in the Project Area. Court Street Square, c c'""1i°°'b a°" !! at the corner of Court and "E" Streets, provide a O covered outdoor stage for a variety of public activities throughout the year. The San Bernardino Stadium, a 5,000 seat facility which is home to the San Bernardino 66ers (Class "A" farm team for the Dodgers) is anchored by the Carousel regional mall. Central City North The Central City North Project Area was adopted on August 6, C e n t r a I C i t y N o r t h 1973 and spans 278 acres. Located east of the 1-215 Freeway near the City's Civic Center, Central City North is a mixture of retail, commercial, restaurant, professional service and single family residential uses. Since adoption, senior housing facilities, the City's main library, the 20-screen multi-plex theater, and the Stater Bros Central City Plaza have been developed. The California Theatre, a qualified national historic building which is home to the San Bernardino Symphony, has been renovated through the Agency as well. %tiA Alongside the development of the commercial, arts, and residential uses in Central City North, the Project Area now includes the administrative offices for the City Unified School District, County Superintendent of Schools, Community College District, Social Security Administration, and other state agencies. The Project Area is also home to the Central Police Facility, which joins police staff, communications, and jail facilities, all under one roof. Within the Superblock, the eleven story consolidated office tower and parking garage for the State Department of Transportation, CalTrans, was completed. 'Acreage calculations vary by source depending on inclusion of public right-of-ways. 14 San Bernardino Redevelopment Five Year Implementation Plan: FY tt t through 2013-14 nr�7 Central City West Central City West The Central City West Project Area was adopted on February 17, 1976 and encompasses four acres. Located at the northeast sn • s ,•. comer of Fifth Street and Mount Vernon Avenue, Central City West has long been recognized as the gateway to the upper Mt. Vernon Avenue retail and commercial area. The project is easily identified by its early Spanish motifs and LEJ architectural styling, entailing open space, tiled roofs and Sin concrete plaza areas. Central City West is within walking A distance to cultural amenities and specialty food restaurants. State College Adopted on April 27, 1970, the State College Project Area spans State College 1,800 acres. The Project Area is located within the northwest sector of the city and consists of single and multi-family residential, open space, recreational, commercial and industrial uses. The State College Project Area contains the 350-acre State College Business Park which is adjacent to the 1-215 Freeway and University Parkway; making it an ideal place for distribution and manufacturing facilities. The Business Park includes the A Sun Publishing Co., C Fine-Pack, Prime-Line Products, Color Tile, and Doane Pet Food Products. While several businesses exist in the park, vacant land is available for future development. The California State University of San Bernardino is located near the foothills of the Project Area, which is also benefitted by proximity to the Shandin Hills Golf Course, which creates an attractive entrance into the City. Southeast Industrial Park The Southeast Industrial Park was adopted on June 21, 1976 Southeast with a total acreage of 870 acres. The Project Area is located in the southeast quadrant of the City and is divided into a 520 acre western section and 350-acre eastern section. The western s•=• end is devoted pri marily to commercial complexes and professional offices, while the eastern area is zoned for light industrial. The western section is adjacent to the 1-10 and 1-215 Freeways interchange and offers a restaurant row, a mix of professional A office complexes, a Hilton hotel with convention facilities and various motels, retail, commercial, and light industrial groups. West of the 1-215 Freeway is the San Bernardino Auto Plaza. The eastern section has both 1-10 Freeway and rail access and is in close proximity to the San Bernardino International Airport; making it ideal for distribution and manufacturing facilities. Vacant land is available for development. 15 San Bernardino Redevelopment Agency f4k, Five Year Implementation Plan: FY 00 o 2013-14 1 Sao Uexar ix Northwest The Northwest Project Area was adopted on July 6, 1982 and N o r t h w e s t contains 1,500 acres. Located in the northwest quadrant of the City, the Project Area is divided into 940-acre Sub-area A and 560-acre Sub-area B. Sub-area A is southwest of Cajon Boulevard, north of Seventh Street and west of the 1-215 Freeway. The area focuses mainly on the commercial corridors along portions of Highland Avenue, Baseline, Medical Center Drive, and Mt. Vernon Avenue. San Bernardino Community Hospital and the Westside Shopping A Center are major employers in the area. Sub-area B is located north of the Devil Creek Diversion Channel, south of the 1-215 Freeway, southeasterly of Palm Avenue, and fronting on both sides of Cajon Boulevard. The area is designated for industrial uses, with vacant land available for development. The industrial area is connected to the State College Business Park industrial area via a bridge that allows better access to the 1-15 and 1-215 Freeway interchange. Tri-city The Tri-City Project Area was adopted June 20, 1983 and Tr -c.tv contains 378 acres. Located in the southeast section of San (; Bernardino, the Tri-City Project Area is divided into two areas: ^a Sub-area 1 and Sub-area 2. Sub-area 1 spans 95 acres and is located west of Del Rosa ' Avenue and north of Sixth Street to Baseline. This sub-area is zoned for residential and is occupied by apartment units on a 12-acre site. The remainder of the land is owned and marketed by the Agency. ! W Sub-area 2 consists of 283 acres and is located east of Waterman Avenue, west of Tippecanoe Avenue, and north of the 1-10 Freeway. This sub-area is highlighted by the Tri-City Corporate Center which is a mix of office, light industrial, retail, and commercial uses, including a variety of restaurants. South Valle The South Valle Project Area was adopted on July 9, 1984 and South Vane spans 289 acres. The Project Area is located south of the 1-10 -�-- Freeway within the southern portion of the city limits. South Valle is adjacent to the commerce center of the Southeast Industrial Park and Sub-area 2 of the Tri-City Project Area. South Valle is ideal for commercial and light industrial and is < within the sphere of two commercial and industrial centers. The E Project Area has rail service through the center with a transcontinental truck terminal located adjacent to the project at a' A the southwest corner of Hunts Lane and Redlands Boulevard. 16 San Bernardino Redevelopment Agency Five Year Iniplemerlalion Plan: FY 200 9-10 t Sa Uptown Uptown Adopted on June 16, 1986, the Uptown Project Area encompasses 432 acres and is divided into two areas: Sub-area A and Sub-area B. Sub-area A consists of 348 acres and encompasses the 'I business corridors of"E"Street, Baseline, and Highland Avenue, which includes much of the City's service and retail operations. f Sub-area B is 84 acres and is bounded by Mt. Vernon Avenue, �1 A King Street, Rialto Avenue, and the 1-215 Freeway. The Project Area is also adjacent to the Metrolink Commuter Station and Amtrak Train Depot. Because of its location and variety of available space, the Uptown project is ideal for professional and specialized services. A majority of the City's small to mid-sized medical clinics, dental offices, laboratories, and related services are either in or adjacent to the Project Area. Mt.Vernon The Mt. Vernon Project Area was adopted June 25, 1990 and mt. V e r n o n contains 1,938 acres. The Mt. Vernon Corridor Project Area comprises portions of the City that once represented the city's cultural history. The Project Area consists of Sub-area A, Sub- area B, and Sub-area C. �t Sub-area A is 1,722 acres and incorporates commercial uses along its main thoroughfares, Mt. Vernon Avenue and Foothill Boulevard. The northwest portion of the area is public flood control land. A Sub-area B is 115 acres and is generally located south of Rialto Avenue, west of the 1-215 Freeway, north of Inland Center Drive, and east of"J" Street. This sub-area is a combination of commercial, industrial, residential, and public land uses. Sub-area C is 101 acres and consists of flood control land adjacent and west of the 1-215 Freeway and northwesterly of Orange Show Road/Auto Plaza Drive. 40th Street The 401h Street Project Area was adopted July 20, 2000 and 40th s t r e e t contains 432 acres. The plan is comprised of two non- contiguous areas known as Sub-area 1 and Sub-area 2. Sub-area 1 is the larger of the two sub-areas and is generally E bordered by 44'h Street to the north, Sepulveda and Waterman Avenues to the east, Ralston Avenue and Sonora Street to the south, and Electric and Mountain Avenues to the west. The local neighborhood is served by a mix of retail and commercial uses. Residential uses are primarily north and south of 40th A Street, and east of Sierra Way. Sub-area 2 consists of multi-unit residential and vacant land just east of Sierra Way and along Waterman Avenue. 17 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 11 1 through 2013-14 ti211 IErY8r IN ACCOMPLISHMENTS Achievements in Community Revitalization—Prior Five Year Period THE HUB RETAIL CENTER Part one of this two phase project along the I-10 corridor included the acquisition in 2002 of 35 properties to assemble sufficient land to accommodate a new Sam's Club, which had outgrown its current location, a few blocks to the west. This 135,000-square foot facility added an additional 130 employees to the existing workforce and attracted over$30 million dollars of Tt private investment to the community. �I Following the successful relocation of this key anchor in 2003, the much more ambitious second phase of the Hub Retail Center commenced, including the widening of Tippecanoe Avenue, the realignment of Rosewood Avenue into Harriman Place, the undergrounding of utilities, and a new traffic signal at Tippecanoe Avenue and Harriman Place. In Phase II, 87 households were successfully relocated with many tenants becoming homeowners for the first time through generous relocation packages and the Agency's Mortgage Assistance Program. The relocation of these tenants made way for the new hospitality and retail center which now includes a Marriott Residence Inn and Fairfield Inn, and a myriad of new restaurants and retail outlets including BJ's Brewery, the Elephant Bar, Taco Bell, Coldstone Creamery, and T-Mobile. This development has been a classic redevelopment project eliminating severely blighted conditions, including substandard housing and major traffic congestion. Both Phase I and II resulted in increased sales tax, tax increment, and transient occupancy tax of approximately $1.4 million annually for the City and Agency, and the creation of approximately 450 new jobs. The Agency's cost was approximately $9.0 million for this endeavor, which was completed in 2006. INLAND BEHAVIORAL HEALTH SERVICES Downtown, which has seen challenges in attracting new development, was chosen as the site for a new medical facility for Inland Behavioral Health Services ("IBHS"), a community- based agency established in 1972 which became a federally Qualified Health Center in 2002. IBHS provides a full range of health care services to the medically underserved population of the City of San Bernardino including onsite primary health care, i mental health treatment, programs for pregnant mothers and _ their children, as well as drug and alcohol treatment services, crisis intervention, counseling, drug diversion programs, and assistance programs for families facing homelessness. IBHS's patients are uninsured with 39% being Medi-Cal patients. With approximately 17,500 patients served annually, IBHS expects to double their annual patient count to 35,000 in the first year of operation of the new facility. The Agency was able to offer assistance to the new $9.2 million, 28,340-square foot medical clinic at 655 North "D" Street through of site improvements such as street widening, curbs, gutters, and sidewalks, and undergrounding of utilities. Completed in 2007, the project has attracted ..� close to 400 well-paying medical and medical-related jobs to the Downtown area. 18 San Bernardino Redevelopment Five Year Implementation Plan:FY II• . I n SAN BERNARDINO HISTORICAL AND PIONEER SOCIETY Another project located in Downtown was an Agency grant in 2006 to the San Bernardino Historical and Pioneer Society. While small in economic terms, this project was large in terms of goodwill, enabling the Society to install a new roof to their historic 1891 Heritage House Museum, originally the home of Judge George E. Otis. Located on the corner of 8th and "D" Streets, which is the last remaining carriage comer lot in the City, the Historical and Pioneer Society Headquarters houses several important San Bernardino artifacts, and a library of early San Bernardino documents and records. LA PLACITA Adjacent to Downtown, the Agency entered into a Disposition and Development Agreement with La Placita in 2006 to take down the extremely blighted El Tigre strip center and construct a new shopping complex opposite the historic 1928 Sante Fe Railroad Depot, which itself has recently undergone $14 million in rehabilitation and historic renovation. Adjacent to this is the San Bernardino Metrolink Station which provides regular train transportation to Los Angeles and the beach cities. La Placita has been constructed in an architectural style which is sympathetic to the original railroad depot across the street, including design elements like fountains, balconies, and piazzas. The project ie consists of 100,000 square feet of retail shops and boutique ! stores anchored by a 45,000 square foot Superior supermarket. - The Agency was instrumental in assembling the relevant properties, installation of a traffic signal, realignment of streets, and the installation of the curbs, gutters, and sidewalks. When all of the stores become operational, it is anticipated that approximately 120 jobs will be created with a $26 million capital investment on the part of the developer. MAPEI To the north of the City in the University Industrial Park, the Agency disposed of 16 acres of land in 2006 to the Italian multinational company Mapei, who manufactures grout and adhesives for the construction and home improvement industries. Phase one consisted of a 120,000 square foot manufacturing and distribution center on 6 acres leaving an additional 10 acres for future expansion. The stunning building, which was designed by Italian Architect Raphael Grecco, has set a new benchmark in architectural design and houses a 0- -A6 quality control laboratory and a regional sales office. Mapei is a truly international company with manufacturing and distribution facilities in over forty countries across every continent worldwide. They employ approximately 60 people at the San Bernardino facility. 19 San Bernardino Redevelopment Agency dt Five Year Implementation Plan: 00 r througb 2013-14 $N IN ESSEX As a result of the Orange Show Road extension to Waterman Avenue, the Agency owned a remnant property at the northwest corner of Orange Show Road and Waterman Avenue. The Agency entered into a Disposition and Development Agreement in 2004 for the sale of this property to the Essex Group for the construction of an office/industrial park of 222,000 square feet. y The Essex Group constructed condominium units and two free standing buildings that have all been sold resulting in 33 new businesses at this corner and 164 new jobs. AMAPOLA The west side of the City has historically faced challenges in attracting new development because of disadvantageous locations of freeway exits. The local restaurant chain Amapola Rico Taco, however, purposefully chose the southeast comer of Baseline and Mount Vernon Avenues to construct their new corporate headquarters and central commissary to serve the other restaurants in the chain. Not only did the Agency provide extensive counseling to the owners of the company in all aspects of design, engineering, and the development process, but also arranged for the financing of the project utilizing the Agency's Grow San Bernardino Fund through the National Development Council. Completed in 2005 this project has resulted in over 20 persons being employed at the facility, paved the way for three new Amapola outlets since the facility was built, and served as a catalyst for attracting ~ further development to the area, including a new Walgreens pharmacy, a McDonalds restaurant, and a new shopping center on Mount Vernon Avenue. PERRIS CAMPUS PLAZA PROJECT The Agency entered into a Redevelopment Cooperation Agreement with the Inland Valley Development Agency ("IVDA") in 2007 to provide assistance, through an Owner Participation Agreement, to the Perris Campus Plaza Project, located in close proximity to the Orange Show Road development, opposite the San Bernardino International Airport. Assistance consisted of financial assistance to address unforeseen expenses incurred with widening of Tippecanoe Avenue and the completion of improvements to storm drains and flood control facilities as part of mitigation measures for the project. The project consisted of three buildings totaling 107,800 square feet and houses the Community Action Partnership of San Bernardino County (a food bank), the County of San Bernardino Weatherization Department, and the San Bernardino County Preschool Services Department. Over 200 people are employed in these three buildings. 20 San Bernardino Redevelopment Implementation Five Year r through 2013-14 sill M ST. BERNADINE SENIOR HOUSING COMPLEX Some of the more notable achievements in the Agency's wrP7P Housing Division include the rehabilitation of 151 units at the St. Bernadine Senior Housing Complex at 550 West 5th Street. / T"r The project included the installation of an upgraded elevator, interior and exterior painting, new awnings, carpet, and covered carport. The Agency expended $700,000 in federal HOME ` Funds for this project which was completed in 2007. TELACU The Agency entered into a Development and Disposition Agreement with TELACU Development, LLC in 2005 for the development and sale of 12 single family homes (6 affordable and 6 market rate units) for the 49th Street rehabilitation project. To facilitate the project, the Agency acquired a dilapidated but occupied 4-plex unit, 5 vacant 4-plex units, and 6 vacant parcels. The original residents were relocated to safe and sanitary housing elsewhere in the City. The Agency expended $1.2 million from its Low and Moderate Income Housing Fund in the 40th Street Project Area and has since acquired, relocated, and demolished an additional four 4-plexes and one 10-plex for future Phase II development of 49th Street. To date, the Agency has expended a total of $2.7 -- million from its Low and Moderate Income Housing Fund and ` .�24d1§ftrr $500,000 in federal HOME funds. GILBERT STREET Under a Development Agreement with AHEPA National Housing Corporation Inc. and AHEPA Local Arrowhead 302 Chapter, a beautiful new 90-unit, senior housing complex was constructed at 377 East Gilbert Street near Saint Bernadine Hospital. The Agency expended $1.3 million in federal HOME funds on this showcase project which was completed in 2009. MEADOWBROOK PARK In the Meadowbrook Park area of Downtown, the Agency idsacquired 11 dilapidated properties consisting of a neighborhood store, three 4-plexes, six single family homes, and two vacant parcels to assemble 13 lots. The tenants were relocated and structures demolished. The parcels were combined with 10 developer-owned lots for the construction of 23 single family homes. The Agency expended $4.1 million from its Low and Moderate Income Housing Fund on this important slum clearance project. The project was completed in 2008. 21 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 SECTION II: REDEVELOPMENT STRATEGIC PLAN 22 San Bernardino Redevelopment IM Five Year Implementation Plan:FY 11 1 . 1 III REDEVELOPMENT PLAN GOALS Community Reinvestment and Revitalization This Implementation Plan establishes a programmatic work plan for implementing and achieving the goals of the Redevelopment Agency over the next five years. Those strategic goals are set forth in the Agency's adopted redevelopment plans for the 14 Project Areas, and are listed as follows. Develop Community Identity. Foster community identity by promoting an environment characterized by architectural and urban design principles, developed through the encouragement, guidance, and professional assistance to owner LIVE participants and redevelopers. leImprove Quality of Life. Increase the variety of recreational opportunities available to the residents within the Project Areas. PLAY Create a Stronger Local Economy. Create local job opportunities by attracting retail and other non-residential commercial and office uses, particularly along major thoroughfares. WORK ® Invest, Promote, and Respect. Promote economic development in the Project Area(s) by providing an attractive, well-serviced, and well-protected environment. Encourage land disposition and development through land assembly and improved access to infrastructure and public services. Address incongruous land uses by INVEST developing landscape buffers and greenbelts. Emphasize Infrastructure Improvements. Facilitate improvements to public infrastructure and facilities that serve the Project Areas, including installation, construction, reconstruction, redesign, or reuse of streets, utilities, curbs, gutters, ACCESS sidewalks, and other public improvements. Improve and Develop Efficient Circulation Systems. Develop a circulation system that improves vehicular movement. Provide and regulate the provision of parking to meet the needs of residents and commercial businesses. GO 23 San Bernardino Redevelopment Agency '(4 Five Year Implementation Plan: FY 200 9-10 through 2013-14 n� '4 Encourage Community Engagement. Economically revitalize the Project Areas by supporting the cooperation and participation of residents, business owners, public agencies, and community organizations. COLLABORATE (9) Housing Accessible to All Families. Increase, improve, and preserve the supply of housing, especially housing affordable to very low, low, and moderate-income households. Increase home ownership in the residential portions of the Project PRESERVE Areas. 24 San Bernardino Redevelopment Five Year Implementation Plan:FY II I Sfl IM STRATEGIC PLANNING Strategic Objectives and Regional Strategies To implement the eight redevelopment goals of the Agency, this Redevelopment Strategic Plan establishes strategic objectives, regionally-focused strategies, and a five year action plan of projects and programs. r,P�REDEVELOPMENT GOALS STRATEGIC OBJECTIVES PROGRAM REGIONAL STRATEGIES IV r VE YEAR WORK The core elements of this Implementation Plan are the five year work programs developed for two geographic regions of the City. The work programs share a common sequence of strategic objectives designed to create a logical and strategic plan for successful redevelopment. STRATEGIC OBJECTIVES Much of the Agency's success depends on its ability to time projects to market opportunities, anticipate and respond quickly to the needs of investors, and build bonding capacity to support new development and public improvements. The Agency's five year work programs are structured around three consistent strategic objectives intended to maximize the Agency's responsiveness to market opportunities, manage public and private risk, and facilitate the creation of public improvements and affordable housing. Plans and Policies Redevelopment is a catalyst and tool to pursuing a vision that is cast by City leaders through land use plans and policies. Long-range plans that support redevelopment activities provide policy direction to derive the greatest ny public benefit from redevelopment activities and projects, -{ ; and discourage inefficient piecemeal development. By ) "` establishing land use objectives and policies, development standards, and design guidelines, the City ,yl ' E•n sets the policy stage for redevelopment and helps create a reduced-risk environment that more readily attracts private investment. Land use plans and policies also provide the framework for planning and financing 25 San Bernardino Redevelopment Five Year Implementation Plan:FY 200 9-10 through 2013-14 Jao Beroar ao infrastructure that will support new development. During the next five years, the development and adoption of updated land use plans and policies will be critical in the Downtown area where the City and Agency recently completed a long-range Downtown Core Vision/Action Plan. Updated General Plan and zoning regulations will provide tools for guiding redevelopment of the Downtown. Public Infrastructure and Facilities As land use plans and policies are crafted and updated to support the revitalization goals of the City, the City and �. kd Agency must determine how to proactively finance and build public infrastructure and facilities needed to support new development. Tax increment generated from new development can be leveraged toward public improvements and facilities that benefit the entire project t area and neighborhood, and not just individual development projects. By upgrading infrastructure to create capacity that supports additional future development, the Agency will greatly advance the revitalization goals of the City while creating an / environment that attracts capital and is more readily P responsive to market opportunities. The City's main commercial corridors will be an important focus of this Implementation Plan. Catalytic Projects .y Redevelopment acts as a "sparkplug" in city revitalization efforts, creating just enough energy and momentum in a city's economic engine to let it rev up and run on its own. By strategically focusing and leveraging resources on key "catalyst projects," redevelopment can spark enough market confidence to attract private investment to a city's revitalization vision and plans. In the current economic downturn and depressed real estate market, distressed opportunity areas around the City have emerged containing vacant buildings and development-ready sites in key strategic locations along major corridors of the City. This Implementation Plan identifies strategies and projects targeting those distressed opportunity areas. 26 San Bernardino Redevelopment Five Year Iniplemenlalion Plan: FY 2009-10 1hrough 2111-14 8aa w REGIONAL STRATEGIES AND WORK PROGRAMS For purposes of this Implementation Plan, the Agency's 14 Project Areas are grouped into two geographic regions, Areas A and B, as shown below in Figure II-1. Figure II-1 CAN of San Bernardino-Redevelopment Project Areas s••-x Legend Gb at San aernadino %f}tt -carnal CM Norm } I� I ? cemml city West :w.y �.•�.1..: ".'Nonnew 40h Street r._j �"•_! �.i rJ'�i�_ Stele C011epe _.,_.._.._.._.., i i Central Lily East !r. •��^� _MeadavArao9/Lentml City(2) 1 - �••r –,"' Central city South Southeast � - \ r i-City ' SOUIn Veb _ •i Uptown ML Vernon IVDA Notes'.IvoA boundaries emend beyond San semerdin0 ch,limits. 0 o.ew.r 14 zt xe Prepared by RSG.August 17,2009 ®Noes A series of regional strategies were identified during the Agency's strategic planning process for the Implementation Plan. In addition to strategies that are specific to Areas A and B, citywide strategies affecting both regions were also identified. Under each strategy, specific projects and programs that implement the strategy are presented. The projects and programs contained in the work program represent the strategic priorities of the Agency. The future implementation of each project or program is subject to funding availability and approval by the Agency as described below.^ 4 CRL Section 33490(a)(1)(13)provides that the adoption of an implementation plan shall not constitute an approval of any specific program, -. project,or expenditure and shall not change the need to obtain any required approval of a specific program,project,or expenditure from the agency or community. 27 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY tt t through 2013 8u na FUNDING SOURCES The Agency's redevelopment powers and resources provide the Agency a unique ability to collaborate with other stakeholder agencies (e.g., City, IVDA, Omnitrans, federal agencies) to leverage multiple funding sources toward projects and programs that achieve common strategic objectives. The following strategic work programs contain potential projects and programs and identify cost estimates and their funding sources. These cost estimates are general and non-specific estimates and are not yet approved or budgeted expenditures of the Agency. Cost estimates are based on one or more funding sources as defined below. TIF Tax Increment Financing CIP City Capital Improvement Program/Plan DIF City Development Impact Fees PBID Property-based Business Improvement District(as listed in the work programs,"PBID"may also include assessment districts, landscape and lighting districts,community facilities districts, etc.) CDBG 1108 Community Development Block Grant and Section 108 Loans O (administered by the U.S. Department of Housing and Urban Development) NSP Neighborhood Stabilization Program(grant administered by the U.S. Department of Housing and Urban Development) EPA Federal Environmental Protection Agency grants SB County County of San Bernardino IVDA Inland Valley Development Authority Omnitrans Regional bus transit agency AFBA As Funding Becomes Available V 28 m � C2m m ° � yo Pr « N pN uECo mm� iy Y1T 6 > NCL '° NU3 j 02> j.1O amau c ° O V Ny y N S Na y rn o Sam d' p�. 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E A > $ ° .- yc x v u= N 5'm 2 0 0 N N WE q «N, JSl JN Q aOi Qamm� c aramrn `o of J L N 9 J > q d N i- O O O Fm NnUQ �° U' LL �U fpm N | } | � � _ ! . • . � { J ( B` ƒ \ � } k } �r . �] » eECOO |7;)) } ({\ {f \!) § k {2 ƒk!}\& , 'k+\ ltQ= ® / ` `� - E &;I � B != �kk)f (« ; +l ; k/ ( ;, l7ft7= f! { 0 0 -® ° r®®`(r° m ` * Z ! ; !!l, y2£! 7El ; [, !e = ! San Bernardino Redevelopment Agency Al Five Year Implementation Plan:FY 2009-10 through 2013-14 Adsh Sao Rema ix SECTION III: HOUSING COMPLIANCE PLAN 64 San Bernardino Redevelopment Agency h Five Year Implementation Plan:FY 2009-10 o 1 bil III INTRODUCTION Overview of the Housing Compliance Plan The CRL requires agencies to adopt an affordable housing compliance plan that identifies how the Agency will achieve the affordable housing production requirements for each Project Area. 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 years in conjunction with the cyclical preparation of the housing element or the agency's five year implementation plan. This section of the Implementation Plan addresses specific requirements in the CRL with respect to prior affordable housing activities and the anticipated housing program for the current ten-year planning period (fiscal years 2004-05 through 2013-14) ("Compliance Period"). This Housing Compliance Plan amends the Affordable Housing Compliance Objectives adopted on January 22, 2007 and presents an updated affordable housing plan through the duration of the Compliance Period. Additionally, the Housing Compliance Plan details the Agency's Housing Goals and proposed work program during the Compliance Period and evaluates the Agency's affordable housing requirements for the next ten years (FY 2009-10 to 2018-19) and the life of the Redevelopment Plans. The Agency is required to allocate 20% of the tax increment revenue it receives from the Project Areas to increase and improve housing affordable to very low, low, and moderate income households. The Housing Fund has been established for this revenue. The Agency has the authority to expend the Housing Fund either inside or outside the Project Areas and aggregate its housing production activities among all Project Areas to more effectively meet housing program objectives. This includes the area contained within the Inland Valley Development Agency ("IVDA") Redevelopment Project Area located within the City of San Bernardino jurisdictional boundaries. The Agency, with the adoption of its 2004 Housing Compliance Plan, has taken action to aggregate its new and substantially rehabilitated units among all Project Areas. The Agency will consider similar action at the Public Hearing to consider the adoption of this Implementation Plan. It is anticipated that, based upon the evidence provided, the Agency will find that the aggregation of its affordable housing obligations among its Project Areas is of benefit to the Project Areas and the community, and that such aggregation will not cause or exacerbate racial, ethnic, or economic segregation. Redevelopment agencies use implementation plans to establish ten-year objectives to achieve compliance with the CRL in its affordable housing programs. These generally fall into three categories: • Housing Production — Based on the number of housing units constructed or substantially rehabilitated over a ten-year period, a redevelopment agency must ensure that a percentage of these units are affordable to low and moderate income households. • Replacement Housing — Another legal obligation of redevelopment agencies is to ensure that any housing units destroyed or removed as a result of an agency redevelopment project are replaced within four years. • Expenditures by Household Types — Redevelopment agencies must meet specific requirements on the amount of Housing Funds spent over a ten-year period on housing affordable to very low income households, low income households, and housing for residents under the age of 65. 65 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY rr r tbrougb 2013-14 San Heraar ib IVDA PROJECT AREA AND HOUSING POLICY WITH THE AGENCY IVDA is a joint powers authority comprised of the Cities of Colton, Loma Linda, Redlands, and San Bernardino, and the County of San Bernardino (the "County"). The IVDA Project Area was adopted by ordinance of the IVDA on July 18, 1990. The IVDA Project Area covers approximately 14,000 acres within approximately 22,400 (assessor's) parcels. The majority of land within the IVDA Project Area falls within the City and County unincorporated territory, with somewhat smaller areas failing within the Cities of Colton, Loma Linda, and Redlands. The IVDA was formed in response to the federal government's decision to close the Norton Air Force Base. Under the CRL, specific authority was granted to these jurisdictions to form a redevelopment project area within three miles of the territory surrounding, adjacent to, or in proximity to the Norton Air Force Base. Base closures have a significant impact on the economy of the surrounding area and authority was granted to the IVDA and participating agencies to revitalize this area. The IVDA and participating jurisdictions have entered into an agreement whereby said jurisdictions have agreed to administer IVDA's Low and Moderate Income Housing Funds to increase and improve the communities' supply of housing available at affordable housing costs to persons and families of very low, low, and moderate income households within their respective jurisdictional boundaries. Pursuant to the current IVDA affordable housing program, 20% housing set-aside funds are transferred by the IVDA to each participating jurisdiction which in turn use these funds for specific affordable housing development activities either within the portion of the IVDA Project Area located within their jurisdictional boundaries or elsewhere in the territorial jurisdiction of the participating jurisdiction. Each participating jurisdiction provides the IVDA with an annual written report on the member's use of such affordable housing funds. Under the provisions of CRL Section 33413(b)(2)(ii), when a redevelopment agency produces an affordable housing unit outside its project area, an agency may only claim a 50% "inclusionary housing credit" for such a housing unit. On September 14, 2005 the IVDA adopted Resolution No. 2005-08 which permitted each member jurisdiction that adopts an acceptance resolution of the IVDA Inclusionary Housing Policy to receive 100% of the inclusionary/replacement housing credits for any developed or newly rehabilitated housing unit undertaken by the member jurisdiction or its duly formed redevelopment agency within the IVDA Project Area that is also within the territorial jurisdiction of such member jurisdiction. The Agency on November 7, 2005 adopted Resolution No. CDC 2005-38, which accepted the IVDA Inclusionary Housing Policy. The Agency is now able to receive 100% of the inclusionary/replacement housing credits for developed or rehabilitated housing units within the IVDA Project Area. As such, this Implementation Plan encompasses both those units created/replaced within the San Bernardino Project Areas and the IVDA Project Area, collectively referred to as the "Project Areas." Although the IVDA has been transferring its 20 percent housing set-aside funds annually to the Agency, it should be noted that the IVDA, the legislative body which controls its 20 percent set-aside, could make a finding and determination to withhold these funds at any time. Consequently, any and all IVDA funds should be treated and used as "estimates and projections." Future revenue streams from IVDA funds are uncertain and therefore restrict the Agency's bonding capacity if supported by tax increment revenue generated within the IVDA Project Area. 66 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY ire i through S11&rrr Iw AGENCY'S FIVE YEAR AFFORDABLE HOUSING GOALS Community Affordable Housing Focus In conjunction with the Mayor and Council members, the Agency completed an Integrated Housing Strategy ("IHS") on October 20, 2008 to help focus implementation activities to meet the City's current and future housing needs. As a result of the IHS and the goals indentified in the Redevelopment Plans, the following details the Agency's housing goals over the remainder of the Compliance Period: ® Notice of Funding Availability. Create a more objective and consistent system for awarding funds for housing projects. HELP © Invest, Promote, and Produce. Promote affordable housing development in the Project Area(s) by providing housing resources for greater community sustainability. Efficiently and creatively expend scarce housing resources. INVEST Encourage Community Engagement. Encourage private sector investment and development of affordable housing by supporting the cooperation and participation of residents, business owners, public agencies, and community organizations. COLLABORATE Housing Accessible to All Families. Increase, improve, and preserve the supply 0 of housing, especially housing affordable to very low, low, and moderate income households. Increase home ownership in the residential portions of the Project PRESERVE Areas. AGENCY AFFORDABLE HOUSING FIVE YEAR STRATEGY Affordable Housing Strategic Programs The following describes the Strategic Programs the Agency will undertake to achieve its affordable housing goals in the Project Areas. The Strategic Programs were identified as part of the IHS and Agency staff input on additional needs since the IHS was prepared. The Strategic Programs, including the projects contained within, will be facilitated in all of the Project Areas to satisfy the Agency's affordable housing requirements pursuant to the CRL. Affordable Housing Project Solicitation: The Agency will allocate funds on an annual basis that will be used to review development proposals, provide project gap funding, improve housing stock, and ensure adequate affordable housing management. The purpose of this is to provide funding to address housing needs throughout the City as they arise while meeting affordable housing needs. 67 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 IS >lU Single-Family Homeownership and Neighborhood Revitalization: The Agency seeks to facilitate programs designed to enhance residential neighborhoods and promote responsible homeownership. This will create healthy and sustainable communities throughout the City. IS Strategic Site Specific Development: The Agency will explore opportunities to acquire specific strategically located sites for affordable multi-family and single family housing development. Sites will generally be chosen based on presence of blight or the potential of being a catalytic project spurring private investment. • Grant and Loan Procurement: The Agency will seek grant and loan opportunities that can be immediately inserted into existing programs and projects in order to extend the Agency's delivery of housing production. By applying for specific grant and loan opportunities that integrate smoothly into existing Agency activities, the speed of new development will increase without additional cost to the Agency. AFFORDABLE HOUSING WORK PROGRAM The list below describes the proposed strategies and related projects for affordable housing across all Project Areas, including Housing Goals that would be achieved, projected timeframe, and estimated costs to implement each Strategic Program over the next five years." Additional projects that are not listed may be implemented over the next five years in accordance with the Strategic Programs. Project/Description STRATEGIC PROGRAM H-1: AFFORDABLE HOUSING PROJECT SOLICITATION. A total of$17,450,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. ❑ Notice of Funding Availability: Program that provides for ®Q © Ongoing affordable housing development by informing potential developers of the availability of housing funds from the Agency's various housing fund resources. HELP 'HVEET COLLABORATE PREAERVE STRATEGIC PROGRAM H•2: SINGLE-FAMILY HOMEOWNERSHIP AND NEIGHBORHOOD REVITALIZATION. A total of $15,760,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. ❑ Residential Revitalization Opportunities: Funds allocated FY 12-13 thru to neighborhood housing projects to lessen blight and Q FY 13-14 promote high quality affordable housing. ❑ Homebuyer Assistance Program: Citywide housing • • Ongoing program that promotes home ownership through a deferred payment second trust deed loan targeted to income eligible ,,,.,E„ coLU.o•RrE EREURVE home buyers. ❑ Code Compliance Receivership Program: Program that S Ongoing utilizes Section 17980.7 of the California Health and Safety Code to target blighted residences for rehabilitation and WYEEI overall neighborhood revitalization. "Costs are subject to change,and completion of these projects may require future action by the Agency. V 68 i San Bernardino Redevelopment Agency Five YeauTImplerneolalion Plan r0 r through 2011-14 yt IY Project/Description Timeframe ❑ Single Family Rehabilitation Program: Program provides Q © Ongoing or grants of$10,000 to income eligible homeowners for exterior rehabilitation within designated target areas. Grant may be used for exterior painting, landscaping, sprinklers, fencing, INVEST COLLABORATE PRESERVE driveway,security lighting or roofing. ❑ Old Timers Grant Program: The Old Timers Foundation, a • © Ongoing local non-profit corporation, performs minor and emergency repairs to low-income homeowners (80% and below median ,,,,,,,, cou..oR.TE RRESERVE income). The repairs generally do not exceed $1,600 per house. Eligibility requirements require that the applicant be a senior age 60, disabled, handicapped, or a recipient of Social Security Income. STRATEGIC PROGRAM H-3: STRATEGIC SITE SPECIFIC DEVELOPMENT. A total of$16,800,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. O Land Acquisition, Relocation, and Demolition Program: ® Ongoing Program that promotes ancillary development and site preparation activities for future development of Agency ,RYEfT properties. ` ❑ 5 m and Meridian Project: Project located along the 2600 FY 09-10 thru rvjj block of W. Sr" Street that is targeted for acquisition, tenant FY 11-12 relocation, and a RFP soliciting an affordable housing ERNES, COLLABORATE LLABORATE PRESERVE ❑ 49 o FY 09-1 t ® -Street Housing: Further acquisition and ® FY 110th thru demolition for future housing development through the acquisition of blighted properties to be replaced by up to ,„VEST COLLABORATE RRESERVB seven new affordable and market rate single family homes. ❑ 19`" and Sunrise Project: Acquisition, relocation, • • • FY 09-10 thru rehabilitation and/or demolition of a series of blighted FY 12-13 four-plexes to be followed by affordable rental housing 81.111 cou.EREnn INEEEEVE and newly built for-sale single family homes. ❑ Magnolia-Highland Senior Housing: New construction of Q © 09-10 thru 80 units of affordable senior housing to be built on a FY10-11 previously blighted commercial site. This represents the Brst project from the Agency's NOFA program. RE`R '"VEST COLLABORATE°RESERVE STRATEGIC PROGRAM W4: GRANT AND LOAN PROCUREMENT. A total of$250,000 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. ❑ Tax Credit Procurement: Technical assistance funds Ongoing allocated to develop and submit competitive low-income ® Q c housing tax credit applications. INVEST RREE ) 69 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 200 9-10 through 2013-14 Project/Description Housing Goals Achieved Projected Timeframe Jea Ben iw ❑ Action Programs and Applications: Technical assistance Q /� ® Ongoing funds allocated to secure federal, state and other affordable housing grants and related resources. .VE.. Io ` eo...E..ErE.rE STRATEGIC PROGRAM H-5: OTHER STRATEGIC HOUSING DEVELOPMENT ACTIVITIES. A total of$3,337,670 from the Housing Fund has been allocated towards this program over the remainder of the Compliance Period. ❑ Casa Ramona / Highland Stand by: Funds allocated on a Q © FY 09-10 thru stand-by basis to assist developer financing of an affordable FY 13-14 senior housing project previously assisted with Agency housing set-aside funds. EVE., ..EEE..E ❑ Utility Rebate Program: Program provides sewer, water, and Q Ongoing refuse rebates to eligible owner-occupied households. ❑ Mobile Home Inspection Program: Funds used to pay a Ongoing portion of the salary of a city building inspector whose job it is to identify health and safety violations in the city's network of .wr. mobile home parks and to cite those violators. ❑ Emergency Relocation/ Rent Assistance: Funds used by Q Ongoing the City Attorney's Office to pay for emergency relocation of /1 low-income tenants of residential rental properties cited for I.VE., __ ) severe health and safety code violations. ❑ Casa Ramona Grant: Grant funds made available to an Q © FY 09 10 thru affordable senior housing project previously assisted with FY '13-14 Agency housing set-aside funds. INVEST ..EeE.Ve 70 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 AFFORDABLE HOUSING COMPLIANCE BLUEPRINT FOR AGENCY HOUSING ACTIVITIES The Housing Compliance Plan serves as a blueprint for current and future Agency activities within the Project Areas and outlines how it will meet its low and moderate income housing responsibilities and eliminate blight. This Housing Compliance Plan presents a summary of the Agency's inclusionary and replacement housing programs as mandated by Sections 33413(b)(4) and 33490(a)(2) and (3) of CRL Sections 33000 et seq. Specifically, it presents a forecast of the number of affordable housing units that may be required over the ten-year Compliance Period, and assesses the Agency's plans to facilitate the creation of the required number of affordable housing units within this timeframe. Adoption of a Housing Compliance Plan does not constitute approval of any specific project, program, or expenditure, and it does not change the need to obtain any required approval of a specific program, project, or expenditure from the Agency or community. The Housing Compliance Plan is a general statement of direction rather than an unalterable course of action. As such, in order to effectuate its purposes due to unknown circumstances or new opportunities that arise from time to time, the Agency may amend the Housing Compliance Plan during the five-year term of the Implementation Plan at any point, including but not limited to the mid-term opportunity as required by CRL. HOUSING PRODUCTION Since 1976, redevelopment agencies have been required to assure that, for all units developed in a project area by entities other than an agency, at least 15% of these new or substantially rehabilitated dwelling units be made available at affordable costs to very low, low, or moderate income households. Of these affordable units, not less than 40% are required to be available at affordable costs to very low income households. These requirements are applicable to housing units as aggregated, and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so required by an agency. These affordable housing production requirements differ for Agency-developed housing versus privately-developed housing. The CRL requires that at least 30% of all new or substantially rehabilitated units directly developed by an agency (within a project area) be available at affordable costs to households of very low, low, or moderate income. Of this 30%, not less than 50% are required to be available at affordable costs to very low income households. It is the practice of this Agency to enter into agreements with third party developers to build all affordable housing units in the Project Areas, and not directly develop housing. The Agency intends to continue this practice through the remaining life of the Redevelopment Plans. Appendix 2 provides a glossary of terms related to affordable housing covenants, affordability limits, and inclusionary unit satisfaction. Table III-1 on the following page shows the total amount of affordable units that have been or are anticipated to be produced in the Project Areas. Those affordable units already produced have documented covenants appropriate to the time in which they were produced and have been counted towards the inclusionary requirements triggered by development in the Project Areas pursuant to CRL Section 33413(c)(1). These affordable units which have been counted towards inclusionary requirements cannot also be used to replace affordable units destroyed within the Project Areas. At this time, no affordable units produced outside the Project Area are expected to be counted towards inclusionary housing requirements. However, in the future, housing units restricted to lower income households produced outside the project Areas may be used towards satisfying inclusionary housing requirements on a 2-for-1 basis according to Section 33413(b)(2)(ii)of the CRL. 71 San o Redevelopment Five Year Implementation Plan:FY rr r through 2013-14 Sta�enar ix Production of Affordable Units Table III - 1 San Bernardino Economic Development Agency Total Low& Affordable Very Low Units Moderate Units ' Units Produced From Adoption through 6/30/2009 626 537 89 Projected To Be Produced From 7/1/2009 through the End of the 404 163 241 Redevelopment Plans Total Affordable Units Produced 1,030 700 330 ' Does not include units that are to replace demolished affordable units As of June 20, 2009, there have been 537 very low income and 89 low and moderate income units produced in the Project Areas since the adoption of the Redevelopment Plans. From July 1, 2009 through the termination of the Redevelopment Plans, it is projected that 163 very low and 241 low or moderate income restricted units will be produced. Therefore, throughout the entire life of the ^e Redevelopment Plans, it is estimated that a total of 1,030 very low, low, or moderate income restricted units will have been produced in the Project Areas. The Inclusionary Housing Obligations table on the following page (Table III-2) summarizes the production goals over various time periods as required by the CRL; a summary by Project Area may be found in Appendix 3. The number of affordable units required is based on statutory thresholds prescribed by the CRL, and the Agency is responsible for ensuring that the appropriate number of affordable units is created during the Compliance Period. Pursuant to CRL Section 33413(d)(1), project areas adopted before 1976 are exempt from the production requirements previously described for very low, low, and moderate income housing ("inclusionary units"). This exemption is removed if a 10-year extension of the project area's effectiveness is adopted under CRL Section 33333.10. Meadowbrook / Central City, State College, and Central City North Project Areas were adopted in 1970 and 1973, respectively, and are being amended pursuant to CRL Section 33333.10. Therefore, housing units built in these Project Areas prior to the amendment do not generate inclusionary housing obligations. However, these Project Areas will generate an inclusionary obligation upon adoption of the 10-year extension. Since the Agency has aggregated its housing production obligations across all Project Areas, affordable units produced in these Project Areas may be used to satisfy obligations generated in other Project Areas in the City. To estimate the number of housing units that need to be affordable to low and moderate income households, the Agency estimated the total number of units to be constructed or substantial rehabilitated in the Project Areas and applied formulas established in the CRL. The following inclusionary housing analysis takes into account all residential construction or substantial rehabilitation that occurred within the Project Areas since their adoptions to determine affordable housing production needs, and includes projections for the number of additional dwelling units to be constructed or �** 72 2001-San Bernardino Redevelopment Agency Five Year Iniplememal ion Plan:FY substantially rehabilitated during the Compliance Period, the next ten years, and over the life of the Redevelopment Plans. Appendix 4 shows a complete listing of all housing units counted towards the Agency's Inclusionary Housing Obligations through June 30, 2008 as well as the affordability covenants associated with each of the units. 73 Redevelopment San Bernardino Five Year 11• I throtiA 2013 Inclusionary Housing Obligations Table III-2 San Bernardino Economic Development Agency Aggregate of All Project Areas Total Privately aitely Affordable Very Low Moderate Developed Units Units Units Required Housing Units Developed° °m Adoption through 6/3011994 901 138 58 80 m Affordable Units Built or Covenanted on Adoption Through 6/30/1994 22 1 21 e Affordable Units Surplus(Deficit) (116) (57) (59) Adoption Through 6/30/1994 v Housing Units Developed° 253 °c y y 711/1994-613012004 45 22 23 LL in ry Affordable Units Built or Covenanted �- 0 7/1/1994-6/30/2004 498 447 51 o `• ^ ^ iO Affordable Units Surplus(Deficit) .°- 7/111994-613012004 453 425 28 CUMULA TIVE AFFORDABLE UNIT SURPLUS (DEFICIT) 337 368 (31) ADOPTION THROUGH 6/30/2004 Housing Units Developed° 280 46 22 24 c 7/112004-6130/2009 c Affordable Units Built or Covenanted e „ C C 7/1/2004.6/3012009 106 89 17 us Affordable Units Surplus(Deficit) 4 e 7/7/2004-6/30/2009 ! 60 67 7 c y a Z Housing Units to Be Developed(Est.)° 257 43 22 21 e « > 0 71112009-6/3012014 n Affordable Units To Be Built or Covenanted(Est.) 404 163 241 A ^ u 711/2009-6/30/201/ Affordable Unit Surplus(Deficit)Over 2nd 10 Year q23 209 214 Compliance Period(Est.)7/1/2004.6/30/2014 ""' CUMULATIVE AFFORDABLE UNIT SURPLUS (DEFICIT) (Est.) 758 576 182 ADOPTION THROUGH 613012014 V Housing Units to Be Developed(Est.)° >` e a r• 190 32 75 77 ' C N N 717/2074-6/30/2079 P y CO2 Affordable Units To Be Built or Covenanted(Est.) 0 0 0 ^+ '^ u 17/1/2014-6/30/2019 CUMULATIVE AFFORDABLE UNITSURPLUS (DEFICIT) (Est.) 726 561 165 ADOPTION THROUGH 613012019 m Housing Units to Be Developed(Est.)° 268 44 22 22 Q 7/1/2019•End of Redevelopment Plans W Affordable Units To Be Built or Covenanted(Est.) 0 0 0 w 7/1/2019-End of Redevelopment Plans CUMULATIVE AFFORDABLE UNIT SURPLUS (DEFICIT) (Est.) +682 +539 +143 ADOPTION THROUGH THE END OF REDEVELOPMENT PLANS •Dua M Me proposed Amendment to the Rebevelopment Plan which well extent Me effectiveness o1 Ma PlanW the Project Nea by 10 years,Project Area will begin ro blggar imJUSiorlary lauairg re4uirements in 201611 Pusuanf ro CRL Section 33333.10 °Psreuant to CRL Section 33413(4)(1),project areas adonned belae 1976 ere axamptenis the requvement to ras(rn tits adindable M vary low,low,ant nvide'ate income households. °15%or All Units Davelopatl or Substantially Rehabiliffied 4/lousing Units Devehundi To be Developed hesede both newly mnstructeo'units and stunse liellyndubllitated units Per CRL Sector 33490(a)(2)(9). 74 San Bernardino Redevelopment Five Year Implementation Plan: FY 2009-10 through Su w Table III-2 shows that development over the past five years has generated a need for 22 very low and 24 low or moderate income restricted units. As 89 very low income units and 17 low and moderate income units were produced during this time, there remains a surplus of 67 very low income units but a deficit of 7 low or moderate income units. Development that is anticipated to occur over the next five years in the Project Areas will generate the need for 43 affordable units, 22 of which must be restricted to very low income households. The Agency further anticipates that during the same time period, 404 affordable units will be produced, 163 units of which are expected to be restricted to very low income households and 241 to low or moderate income households. Therefore, during the course of the current ten-year Compliance Period, it is estimated that the Project Areas will have produced a total surplus of 423 affordable units, 209 of which are very low and 214 are low or moderate units. Taking this surplus into account, it is projected that, from adoption of the Redevelopment Plans through June 30, 2014, the Project Areas will likely have a total surplus of 758 affordable units, 576 of which will be restricted to very low income households and 182 to low or moderate income households. Through the remaining effective term of the Redevelopment Plans, the Agency has projected that the number of housing units that are to be produced will be based on historical development trends and amounts of available land in each of the Project Areas. During the first five years of the next Compliance Plan period, fiscal years 2014-15 through 2018-19, the Agency anticipates that development will generate the need for 15 very low and 17 low income units. Similarly, development that will occur from fiscal year 2018-19 through the term of the Redevelopment Plans will generate the need for 22 very low and 22 low income units. Taking into account the surplus of affordable units at the end of the current Compliance Plan Period, there will still remain a surplus of 539 very low and 143 low income units at the expiration of the Redevelopment Plans. As described earlier in this Implementation Plan, the Agency anticipates development of affordable housing projects in the Project Areas over the Compliance Period that may result in sufficient units to meet the housing production goal. Included in Appendix 2 is a breakdown of projected housing production by Project Area. The fulfillment of the projected housing needs is anticipated to be accomplished through the completion of the programs listed in Work Program. 75 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 J Jre Ben IM REPLACEMENT HOUSING ISummary of Replacement Units Versus Demolished Units Table III -3 San Bernardino Economic Development Agency #of Units #of Bdrms Very Low Units Low& Mod Units g Demolished 366 714 272 94 0 0 o Replaced 1122 2314 751 371 r n F• 0 Surplus (Deficit) 756 1600 479 277 aS Demolished 187 333 80 107 r o Replaced 40 81 11 29 r M r: ro Surplus(Deficit) (252) (69) (78) Cumulative Surplus(Deficit) Through June 30,2009 609 1348 410 199 SOame:San Bernardino Development Services Department The CRL requires that whenever housing occupied by low and moderate income persons or households are destroyed as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement units must be affordable to the same income categories (very low, low, and moderate) as those removed. The Agency receives a full credit for replacement units created inside or outside the Project Areas. Table III-3 above summarizes the units that have been demolished and subsequently replaced in the Project Areas. According to Agency records, there were 366 affordable units that were destroyed in the Project Areas from the adoption of the Redevelopment Plans through June 30, 2004. Of these, 272 units were occupied by very low and 94 were occupied by low or moderate income households. However, during the same time period, 751 very low and 371 low or moderate replacement units were built or covenanted in or outside the Project Areas, generating a surplus of 479 and 277 very low and low or moderate income affordable units, respectively. Similarly, from July 1, 2004 through June 30, 2009, records show that 80 very low and 107 low or moderate income units were destroyed and were replaced by 11 very low and 29 low or moderate income units. This left a deficit for this period of 69 and 78 very low and low or moderate income affordable units, respectively. However, the surplus from the previous period was sufficiently large to offset this period's deficits. Therefore, from adoption of the Redevelopment Plans through June 30, 2009, there were a total of 609 more affordable units produced than were destroyed in the Project Areas. A complete listing of all the replacement units quoted in the above table can be found in Appendix 5. During the remaining Compliance Period through June 30, 2014, the Agency anticipates one additional project that will result in the displacement or removal of affordable housing units in the Project Areas. The 5" and Meridian Avenue Project contains 68 housing units and a Replacement Housing Plan was adopted by the Agency on September 8, 2009. When the Agency purchased the property, 38 units were in such disrepair (lack of plumbing and electrical wiring) that they could not be inhabited without substantial rehabilitation and thus were not viable market units. Of the remaining 30 viable units, 29 very low income units and one moderate income unit will be removed from the housing market and will 76 2009-San Bernardino Redevelopment Agency Five Year Implementation Plan:FY need to be replaced by the Agency. As depicted in Table III-3, the Agency currently has a surplus of 609 replacement housing units that will be more than sufficient to replace displaced units resulting from the 5' and Meridian Project. HOUSING PROGRAM CASH FLOW ANALYSIS The Agency's primary source of funding for housing projects and programs is the annual deposit of 20% (30% in the M/CC and CNN Project Areas) of its tax increment revenue into a special housing set- aside fund. The CRL requires that these funds be used to increase, improve, and preserve the community's supply of housing available, at affordable housing cost, to persons and families of very low, low, and moderate incomes. Other sources of Housing Fund revenues include interest earnings, bond proceeds, IVDA housing revenue, loan repayments, and other miscellaneous revenue. The following table presents the Agency's Housing Fund projected cash flow over the next ten years. The first five years represent the remainder of the Compliance Period (FY 2004-05 through 2013-14) and the subsequent five years represent the beginning of the next compliance period (FY 2014-15 through 2023-24) and is included to assist the Agency with planning for future affordable housing projects and programs. 77 jYR �S N n m in ac T � Via " _ e' c 5 R � $ . � R $ � � $ �� � $ � $ � A � Ig kg� �gg• �a'3 RB 1 y g 8 3 8 R ��LL ��s�pgax is lit I San Bernardino Redevelopment Fi ve Year Implementation Plan: FY 200 9-10 through 2013-14 8a Ir Due to the State's actions to take redevelopment funds to balance the State Budget, the Agency may be required to make Educational Revenue Augmentation Fund ("ERAF") payments during the planning period. In 2008, the State approved the prior budget contingent upon a $350 million shift of tax increment monies from redevelopment agencies to be applied to ERAF. The California Redevelopment Association filed a lawsuit on behalf of all redevelopment agencies asserting that the take from redevelopment was unconstitutional. On April 30, 2009, a judgment in favor of redevelopment agencies was rendered, affirming that the take was unconstitutional and therefore illegal. The State has since dropped their appeal of the court decision. Following this judgment, the State of California approved the FY 2009-10 budget egregiously relying on a $2.05 billion ERAF shift from redevelopment agencies over the next two years. The additional shift to ERAF (referred to as the Supplemental Educational Revenue Augmentation Fund or "SERAF") is estimated to result in a payment of $11,000,000 in 2009-10, and $2,453,000 in 2010-11 from the Agency. The budget trailer bill, Assembly Bill 26 4x, contains a provision by which the Agency has the option to suspend its fiscal 2009-10 20% housing set-aside contribution in order to assist the ERAF shift in that year; however the loan will need to be repaid by June 30, 2015. If the Agency elects this option, the loan could potentially delay many of the housing programs and projects anticipated over the next five year period. EXPENDITURES BY HOUSEHOLD TYPES Effective January 2002, expenditure of housing set-aside revenues is subject to certain legal requirements. At a minimum, the Agency's Housing Fund revenue is to be expended in proportion to the community's need for very low and low income housing, as well as the proportion of the low income population under the age of 65. New legal requirements took effect in 2006 that modified the previous limitation on spending Housing Fund monies on households under the age of 6512. Prior to 2006, Section 33334.4(b) of CRL required that an agency spend its Housing Fund monies "in at least the same proportion as the population under age 65 bears to the total population based on the most recent census." The 2006 changes provide a higher level of specificity to spend "in at least the same proportion as the number of low-income households with a member under age 65 bears to the total number of low-income households of the community as reported in the most recent census." A community's proportionate need is based on statistics from the local regional planning agency, in this case the Southern California Association of Governments, to meet the requirement for affordable housing by category, and the US Department of Housing and Urban Development Comprehensive Housing Affordability Strategy ("CHAS") allocation numbers. However, as data relating to low income persons under the age of 65 is not readily available from the US Census, the metric that closest approximates it is from the CHAS database which represents data of low income persons below the age of 62. Table III-5 on the following page represents the minimum Housing Fund expenditure thresholds for very low and low income households and the maximum housing expenditure thresholds for households 62 years of age over the term of the Compliance Period. The moderate income category represents a maximum figure for expenditures for moderate income households, although such funds (within this category) can be spent on very low or low income households. The chart specifically details the Agency's Housing Fund expenditure during the first five years of the Compliance Period and the `._ 12 The intent of the legislation was to ensure that Housing Funds were not exclusively or extensively used by a community senior housing projects and programs. 79 San Bernardino Redevelopment Agency Five Year Implementation Plan� FY 200 9-10 through 2013-14 Jao Mena IM projected expenditures during the remainder of the Compliance Period. The Agency anticipates meeting their Housing Fund targeting requirements by the end of the Compliance Period. Houaing Fund Proportional Expenditure Allocation Table ill-5 City of San Bernardino RHNA Targeting 2004-05 to 2008-09 2009-10 to 2013-14 2004-05 to 2013-14 Allocation Requirement Income Level Units' %of Tom Expenditure % Expenditure % Expenditure % Very-Low Income(minimum) 1,275 39.0% $5,373,649 23.2% $24,899,491 45.7% $30,273,140 39.0% Low-Income(minimum) 913 27.9% $5,941,569 25.7% $15,736,374 28.9% $21,677,943 27.9-A Moderate-Income maximum 1,079 33.0% $11,817582 51.7% $13801805 25.4% $25879387 33.0% 3,267 $23,132,801 $54,437,670 $77,570,471 .._ -- ____.._. .__ _2 CHAS Targeting 2004-05 to 2008-09 2009-10 to 2013-14 2004-OS b 2013-14 Age Category of Income Allocation Requirement Restricted Households Households %of Total Expenditure % Expenditure % Expenditure % NonSenior 25,431 82.7% $24604,730 98.6% $41,379,251 76.0% $64,183,980 82.7% Senior limitation 5,304 17.3% $328071 1.4% $13058,419 24.0% $13386490 17.3% 30,735 $23,132,801 $54,437,670 $77,570,471 'Southern California Regional Housing Needs Assessment,Final 2007 Data of low income households under the age of 65 is not readily available from the Census. The nearest metric for such Census data represents households under the age of 62(available via the Comprehensive Housing Affordability Strategy at htlpl/socds.hudusecorgkhasfndexhim). Source:SCAG;State of Cities Data System;and HUD As shown in Table III-5, the Agency expended the majority of Housing Fund revenues on moderate and non-senior households during the first five years of the Compliance Period (FY 2004-05 through 2008- 09). The Agency has projected $54.4 million of Housing Fund expenditures for projects and programs implemented over the remainder of the Compliance Period (the second five years from FY 2009-10 through 2013-14). Future Housing Fund expenditures will be spent in the proportions detailed in Table III-5 to ensure that Housing Fund Proportional Allocation targets are met by the end of the Compliance Period. Although the Agency has a surplus of affordable housing units, the Housing Fund must be expended in a timely manner to avoid penalties due to the Agency incurring an excess surplus in the Housing Fund pursuant calculations defined in CRL Section 33334.10.to PRIOR FIVE YEAR HOUSING FUND EXPENDITURES Units Assisted by Housing Set Aside Fund The CRL requires the Agency to report projects assisted by the Housing Fund to create extremely low, very low, and low income housing units over the past implementation plan period (FY 2004-05 through 2008-09). The CRL also requires a recap of the number, location, level of affordability, and the amount of Housing Funds expended on housing units. Table III-6 on the following page summarizes these statistics. 1n An excess surplus is any unencumbered or unexpended amount in the Agency's Housing Fund that exceeds$1.0 million or the O aggregate amount of housing tax increment deposited into the Housing Fund for the four preceding fiscal years. 80 q 0 N y M H H W m N N N m H H h q N 1'1 F W N p d d Wm H N N W A O O E C N b � m N N N � N O m m A rvHj O E C H LQ x 2 O U ° L m C 8J N A Z2 ED E a c � c N c aN+l b v0°i O O o n m h m— m m b n p O S N d J Cp O C W C U Vyy d C m A O : m N 4 mom $ m m g o e S2 a m o HJC O !j d '�p t5 Ord H H H H M N N N N � m m N N n h CH rJ � N q a 8 � J J O O O O O O O m p N Orl 9 N N Q yhOj J 7 O p y W a N U Q N h y U O Y a N W 0 v a a > c u 4 a a v E c 2 tt E " 5 o a q ti —° o 7 a b a O E U d Q m O E `a E m o m x `u o i x m ° w u a S y� W a L cp c m — o¢ °c x o E u O W T d O m S O W i E a g—' d ¢ a u A E y 2 42 $ %W x a x H U O m v Z 2 J m O Z Z San Bernardino Redevelopment Agency Five Year Implementation Plan: FY II . I ' Sil IN Table 111-6 above breaks down Housing Fund expenditures from the past five years by income category and age group. As also shown in the Housing Fund Proportional Expenditure Allocation table(Table III- 5), $5,373,649 (or 23.2%) of the Housing Fund was expended on very low income housing and $5,941,569 (or 25.7%)was expended on low income housing. To comply with proportional expenditure allocation requirements per CRL Section 33334.4, the Agency will need to expend approximately $24.9 million and $15.7 million on very low and low income housing, respectively, over the next five years. Similarly, $328,071 (or 1.4%)of the Housing Fund was expended on people over the age of 62 over the past five years. Therefore, to comply with proportional expenditure requirements as outlined in Table III- 5, not more than $13.1 million of the $54.4 million anticipated total expenditure on housing projects and programs can be expended on this population over the next five years. Housing Unite Constructed During Prior Implementation Plan Without Housing Set Aside Funds Since fiscal year 2004-05, 78 affordable restricted units featuring long term covenants (affordable units with covenants of at least 45 years for ownership housing or 55 years for rental housing) have been created with funds other than tax increment. Of these, 48 were restricted to low, 22 were restricted to very low, and 8 were restricted to extremely low income households. Table III-7 below outlines the location, affordability breakdown, and funding source of these units. Affordable units Constructed from 2004 to 2009 Without A enc Assistance Table Hi-7 San Benn ino Economic Development Agency Assessor Pamel Pmject Affordability Level Total Affordable Funding Amount of Date CDmnmt Number Info,-ration Pro q Area Low VeN Low EKL Low nl s Source Assistance Com IOtetl Tam AHEPA 377(APN East Gilbert S1) IVDA 43 1 45 89 HOME $1,200,000 W2012009 55 Veers 0147 82 San Bernardino Redevelopment Five Year Implementation Plan: FY II ' 1 through 2013-14 $11 IN APPENDIX is PROJECT AREA TIME AND FINANCIAL LIMITATIONS 83 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 2009-10 r 1 [ r4Y J�o Be tar Ib Redevelopment Plan Limits - Meadowbrook/ Central City Plan Adoption_______________________________________________________________________Jul 21,-1958 Limitation Plan Limit Time Limitations Acquistion of Land Through Eminent Domain January 17,2014 Final Dale to Incur Indebtedness Expired Final Date to Collect Tax Increment Revenue May 3,2029 Effectiveness of Redevelopment Plan May 3,2019 Financial Limitations Outstanding Bonded Indebtedness Limit $50,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service I The City Council adopted the Meadowbrook Project Area on July 21, 1958 by Ordinance No. 2233. The Central City Project Area was adopted on February 23, 1965 by Ordinance No.2649.In 1970,the Central City Project Area was merged with Meadowbrook per Ordinance No.3059. 2 The City Council adopted Ordinance MC-1113 on December 17,2001 re-instafing the Agency's eminent domain authority for approximately 12 years. 3 The Agency's time limit to nour debt expired January 9,2002. The City Council adopted Ordinance MC-1300 on April 20,2009 extending the previous time lim to collect tax increment by two years pursuant to SS 1045. 5 The City Council adopted Ordinance MC-1300 on April 20,2009 extending the redevelopment plan effectiveness by two years pursuant to SB 1045. s Bonded Indebtedness limit derived from total of both Meadowbrook and Central City limits Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Repoli-RSG Redevelopment Plan Limits - Central City East Plan Ado lion _ Uay , 1976 ____A _ ______________------------------_--_-_--------______ _____ Limitation Plan Limit Time Limitations — W Acquistion _ Acquistion of Land Through Eminent Domain January 3,2014 Final Dale to Incur Indebtedness' Expired Final Date to Collect Tax Increment Revenue° May 3,2029 Effectiveness of Redevelopment Plan May 3,2019 Financial Limitations Outstanding Bonded indebtedness L'-lm—l:t. ------- $25,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service In 1983 the Central City East Project Area was merged with the Central City Projects pursuant to Health&Safety Code Section 33476. 2 The City Council adopted Ordinance MC-1112 on December 3,2001 re-instating the Agency's eminent domain authority for approximately 12 years. 3 The Agency's time limit to incur debt expired January 9,2002. C The City Council adopted Ordinance MC-1302 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. 5 The City Council adopted Ordinance MC-1302 on April 20,2009 extending the redevelopment Ian effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consulants Report-RSG 84 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 200 9-10 through 2013-14 3anUena Iw Redevelopment Plan Limits - Central City South Plan Adoption________________________________________________________________________May 3,_1976 Limitation Plan Limit Time Limitations Acquistion of Lan.d—.. ...__Through Eminent Domain.-------�.__.�..._...__...._..— September 17,2013 Final Date to Incur Indebtedness3 Expired Final Date to Collect Tax Increment Revenue° May 3,2029 Effectiveness of Redevelopment Plans May 3,2019 Financial Limitations Outstanding Bonded Indebtedness Limit $30,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service 'The City Council adopted the Project Area on May 3, 1976 by Ordinance No.3572. n 1983 the Central City South Project Area was merged with the Central City Projects pursuant to Health& Safety Code Section 33476. The City Council adopted Ordinance MC-1104 on September 17,2001 re-instating the Agency's eminent domain authority for approximately 12 years. The Agency's time limit to incur debt expired January 9,2002. The City Council adopted Ordinance MC-1301 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. 5 The City Council adopted Ordinance MC-1301 on April 20,2009 extending the redevelopment Ian effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG Redevelopment Plan Limits - Central City North Plan Adoption _ August 6_1973 _ ___________________________________________________ —_ Limitation Plan Limit Time Limitations Acquistion of Land Through Eminent Domain August 6,2013 Final Date to Incur Indebledness3 Eliminated Final Dale to Collect Tax Increment Revenue° August 6,2026 Effectiveness of Redevelopment Plans August 6,2016 Financial Limitations ...__...__.._dnes__._-.__..—..—_—..—___ Outstanding Bonded Indebtedness Limit $40,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service 'The Citv Council adopted the Project Area on Auqust 6.1973 by Ordinance No.3366. ]The City Council adopted Ordinance MC-1182 on September 7,2004 re-instating the Agency's eminent domain authority for approximately 9 years. 3 The City Council adopted Ordinance MC-1154 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1294 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. 5 The City Council adopted Ordinance MC-1294 on April 20,2009 extending the redevelopment Ian effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG 85 San Bemardino Redevelopment Agency Five Year Implementation Plan:FY 200 9-10 through 2013-14 tiao Ueroar Iw Redevelopment Plan Limits - Central City West Plan Adoption__________________________________________________________________February 17_1976 Limitation Plan Limit Time Limitations Acquisition of Land Through Eminent DomainT _ P Ex red Final Date to Incur Indebtedness3 Eliminated Final Date to Collect Tax Increment Revenue° February 17,2029 Effectiveness of Redevelopment Plans February 17,2019 Financial Limitations Outstanding Bonded Indebtedness Limit $6,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service I The City Council adopted the Project Area on February 17,1976 by Ordinance No.3553. The authority to acquire land through eminent domain expired January 9, 1999. 3 The City Council adopted Ordinance MC-1155 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1295 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. 5The City Council adopted Ordinance MC-1295 on April 20,2009 extending the redevelopment plan effectiveness by two years pursuant to SS 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal ConsuBents Report-RSG Redevelopment Plan Limits - State College Plan Adoption______________________________________________________________________April 27,_1970 Limitation Plan Limit Time Limitations _ Acquistion of Land Through Eminent Domain April 27,'F010 Final Date to Incur Indebtedness3 Eliminated Final Date to Collect Tax Increment Revenue4 April 27, 2023 Effectiveness of Redevelopment Plans April 27,2013 Financial Limitations Outstanding Bonded Indebtedness Limit $60,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service The City Council adopted the Protect Area on April 27.1970 by Ordinance No.3067 'The City Council adopted Ordinance MC-1146 on June 16,2003 re-instating the Agency's eminent domain authority for approximately 7 years. 3 The City Council adopted Ordinance MC-1153 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. 4 The City Council adopted Ordinance MC-1293 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. s The City Council adopted Ordinance MC-1293 on April 20,2009 extending the redevelopment Ian effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG 86 San Bernardino Redevelopment Five Year Implementation Plan: FY 2009-10 through 2013-14 Bnn Bena IM Redevelopment Plan Limits - Southeast Industrial Park Plan Adoption June 21, 1976 Limitation Plan Limit Time Limitations Acquistion of Land Through Eminent Domain n-_ Expired Final Date to Incur Indebtedness' Eliminated Final Date to Collect Tax Increment Revenue° June 21,2029 Effectiveness of Redevelopment Plans June 21,2019 Financial Limitations Outstanding Bonded Indebtedness Limit $60,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service t The City Council adopted the Protect Area on June 21.1976 by Ordinance No.3583. The authority to acquire land throuqh eminent domain expired January 9, 1999. 3 The City Council adopted Ordinance MC-1156 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1296 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. a The City Council adopted Ordinance MC-1296 on April 20,2009 extending the redevelopment plan effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG Redevelopment Plan Limits - Northwest Plan Adoption---------------------____________-__-__------___---__-_-_-----------Julp 6. 1982 Limitation Plan Limit Time Limitations Acquistion of Land Through Eminent Domain Expired Final Date to Incur Indebtedness Eliminated Final Date to Collect Tax Increment Revenue July 6,2035 Effectiveness of Redevelopment Plans July 6,2025 Financial Limitations Outstanding Bonded Indebtedness Limit $35,000,000 Limit on Receiving Tax Increment $4,500,000 Annually I The Citv Council adopted the Protect Area on July 6,1982 by Ordinance No.MC-189. 3 The authority to acquire land through eminent domain expired July 6. 1994 3 The City Council adopted Ordinance MC-1157 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1297 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. The City Council adopted Ordinance MC-1297 on April 20,2009 extending the redevelopment Ian effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG 87 San Bernardino Redevelopment Agency "'k Five Year Implementation Plan:FY 2009,10 through 2013-14 Jag�eraa i� Redevelopment Plan Limits - Tri City Plan Adoption' 83 June 20, 19 __ Limitation _____________�____.,_�____________________ Plan Limit Time Limitations Acquisition of Land Through Eminent Domain 2 Expired Final Date to Incur Indebtedness' Eliminated Final Date to Collect Tax Increment Revenue° June 20,2036 Effectiveness of Redevelopment Plans June 20, 2026 Financial Limitations Outstanding Bonded Indebtedness Limit $18,000,000 Limit on Reeeivin $60,000,000 The City Council a Tax Increment adopted the Project Area on June 20.1983 by Ordinance No.MC-283. 2 The authority to acouire land through eminent domain expired June 20, 1995 'The City Council adopted Ordinance MC.1158 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1298 on April 20,2009 extending the previous time lime to collect tax increment by two years pursuant to SB 1045. 'The City Council adopted Ordinance MC-1298 on April 20,2009 extending the redevelopment Ian effectiveness by two years pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency, 2006 Fiscal Consutants Report-RSG Redevelopment Plan Limits - South Valle Plan Adopt ion-------------------_------------___ __________July 9,_1964 Limitation - - --------------��---- Plan Limit Time Limitations Acquisition of Land Through Eminent Domain No Eminent Domain Final Dale to Incur Indebtedness' Eliminated Final Date to Collect Tax Increment Revenue° July 9,2036 Effectiveness of Redevelopment Plan July 9,2026 Financial Limitations Outstanding Bonded Indebtedness Limit $14,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service I The City Council adopted the Prolect Area on July 9, 1984 by Ordinance No.MC-387. 2 Eminent Domain was not established for South Valle. 'The City Council adopted Ordinance MC-1159 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1299 on April 20,2009 extending the previous time lime to collect tax increment by one year pursuant to SB 1045. 5 The City Council adopted Ordinance MC-1299 on April 20,2009 extending the redevelopment Ian effectiveness by one year pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG 88 San Bernardino Redevelopment Agency Five Ye4�Implementation Plan: FY-1011-10 through 1011-14 �tex Ix Redevelopment Plan Limits - Uptown Plan AdoptionJune 16_1986 Limitation Plan Limit Time Limitations Acquistion of Land Through Eminent Do � September 7,2016 Final Date to Incur Indebtedness3 Eliminated Final Dale to Collect Tax Increment Revenue° June 18,2037 Effectiveness of Redevelopment Plans June 18,2027 Financial Limitations Outstanding Bonded Indebtedness Limit $20,000,000 Limit on Receiving Tax Increment 1.75 x Annual Maximum Debt Service t The City Council adopted the Proiect Area on June 16. 1986 by Ordinance No. MC-527 3 The City Council adopted Ordinance MC-1183 on September 7,2004 re-instating the Agency's eminent domain authority for approximately 12 years. 3 The City Council adopted Ordinance MC-1161 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1205 on June 20,2005 extending the previous time lime to collect tax increment by one year pursuant to SB 1045. s The City Council adopted Ordinance MC-1205 on June 20,2005 extending the redevelopment Ian effectiveness by one year pursuant to SB 1045. Soume:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG Redevelopment Plan Limits - Mt. Vernon Plan Adoption___�_ June 25, 1990 Limitation Plan Limit Time Limitations Acquisition of Land Through Eminent Domain November 1,2013 Final Date to Incur Indebtedness Eliminated Final Dale to Collect Tax Increment Revenue° June 25,2041 Effectiveness of Redevelopment Plan June 25,2031 Financial Limitations Outstanding Bonded Indebtedness Limit J $100,000,000 Limit on Receiving Tax Increment $950,000,000 r The City Council adopted the Proiect Area on June 25,1990 by Ordinance No.MC-733. The City Council adopted Ordinance MC-1105 on October 1,2001 extending the Agency's eminent domain authority for approximately 12 years. 3 The City Council adopted Ordinance MC-1160 on December 1,2003 eliminating the time limit to incur debt pursuant to SB 211. The City Council adopted Ordinance MC-1206 on June 20,2005 extending the previous time lime to collect tax increment by one year pursuant to SB 1045. s The City Council adopted Ordinance MC-1206 on June 20,2005 extending the redevelopment Ian effectiveness by one year pursuant to SB 1045. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG 89 San Bernardino Redevelopment Five Year Implementation Plan: FY 200 9-10 through 2013-1 �n�IPtOdf Iw Redevelopment Plan Limits -40th Street Plan Adoption---'----------------_---------------------------___ - July 10,2000 Limitation _ Plan Limit Time Limitations Acquistion of Land Through Eminent Domain August 10,2012 Final Date to Incur Indebtedness3 July 10,2020 Final Date to Collect Tax Increment Revenue July 10,2045 Effectiveness of Redevelopment Plans August 10,2030 Financial Limitations Outstanding Bonded Indebtedness Limit $20,000,000 Limit on Receiving Tax Increment No Limit I The Citv Council adopted the Proiect Area on July 10.2000 by Ordinance No.MC-1077. 2 The City Council adopted Ordinance M61077 on July 10,2000 establishing the Agency's eminent domain authority for 12 years. 3 The City Council adopted Ordinance MC-1077 on July 10,2000 establishing the Agency's ability to incur debt for 20 years. The City Council adopted Ordinance MC-1077 on July 10,2000 establishing the Agency's ability to collect tax increment for 45 years The City Council adopted Ordinance MG1077 on July 10,2000 establishing the redeveloplment lans,effectiveness at 30 vears. Source:May 2009 Project Summary Sheet-San Bernardino Redevelopment Agency,2006 Fiscal Consultants Report-RSG 90 San Bernardino Redevelopment Agency r r r throu,g h 2013 " yo Bens it APPENDIX 2: GLOSSARY OF HOUSING TERMS 91 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 200 9-10 through 2013-14 Snn lemer iw APPENDIX 2 Glossary of Housing Tersss There are many ways in which the Agency may create inclusionary units that satisfy the requirements outlined in CRL Section 33413 including new construction of for-sale and rental housing, substantial rehabilitation, and the purchase of covenants on multifamily rental housing. New Construction & Substantial Rehabilitation: For-sale (affordable) inclusionary units or inclusionary multifamily rental housing may be created by assisting new construction or providing financing for purchasers of new housing, and by substantially rehabilitating such units per the Law definition. To be counted toward the Agency inclusionary unit need, for sale units must be covered by a 45-year affordability covenant and rental units by a 55-year affordability covenant. Substantial rehabilitation occurs when the after rehabilitation value of a dwelling is increased by at least 25%. Substantially rehabilitated units must be covenanted for a 45 or 55- year period depending on whether it is a rental or for-sale unit. Purchase of Covenants: The Agency may use the Housing Fund to subsidize multifamily units that are not substantially rehabilitated or newly constructed, by the purchase of an affordability covenant. The affordability covenants on multifamily units would restrict such units for a period of 55 years. Such units must be occupied by and affordable to very low and low income households. The Agency may only meet up to 50% of their required inclusionary unit need in this manner. Furthermore, 50% of the covenants purchased must be affordable to very low and low income households. Inclusionary units secured by the Agency through the purchase of covenants, substantial rehabilitation, and new construction that are located within the Project Area boundaries can be counted on a one-for-one basis. If the units are located outside of the Project Area they only receive one-half(%:) credit (counted on a two-for-one basis). Mutual self-help housing units receive a 1/3 credit towards satisfying inclusionary unit production requirements. Mutual Self-help Housing: Mutual self-help housing refers to very low or low income, owner-occupied housing units where residents have contributed at least 500 hours of work on the unit to ensure safe and sanitary housing. Mutual self-help housing units must be deed restricted for at least 15 years. Each housing production unit must have a covenant recorded with the county pursuant to CRL Section 33334.3 in order to be counted. DURATION OF AFFORDABILITY COVENANTS Prior to January 1. 2002: for no less than the period of land use controls established in the redevelopment plan. After January 1. 2002: for the longest feasible time, but not less than 55 years for rental housing and 45 years for owner occupied housing. Under CRL Section 33413, rental housing units may be replaced prior to the expiration of the 55-year period with equally affordable and comparable rental units in another location within the City if (i) the replacement units are available for occupancy prior to the displacement of any persons residing in the subject units and (ii)the comparable replacement units are not developed using moneys in the Housing Fund. 92 Agency Five Year Irnplemenlalion Plan: FY 11 through San Bernardino Redevelopment Su w Under CRL Section 33413, owner-occupied units may be sold prior to the expiration of the 45-year period for a price in excess of what would otherwise be allowed if the units are subject to an equity sharing agreement or some other program that protects the Agency's investment of Housing Fund moneys. The Agency must deposit the excess proceeds in the Housing Fund and within three years from the date of the sale of the units, spend funds to make affordable an equal number of units at the same income level as the units sold. Only the units originally assisted by the Agency can be counted towards the Agency's obligations under Section 33413. AFFORDABILITY INCOME AND COST LEVELS Section 50052.5 of Health and Safety Code defines affordable housing cost as: • Extremely Low—Not more than 30% of 30% of the County median household income. • Very Low- Not more than 30% of 50% of the County median household income. • Low - Not more than 30% of 70% (or 30% of 60% for rental projects) of the County median household income. • Moderate - Not more than 35% of 110% (or 30% of 120% for rental projects) of the County median household income. The following tables detail affordable housing costs for rental and ownership units, as well as the number of households by income category, in San Bernardino based on the 2009 San Bernardino County Area Median Income. 93 San Bernardino Redevelopment Agency 4 Five Year Implementation Plan:FY 200 9-10 tbrougli 2013-14 Set Ben Iw Affordable Housing Analysis for Rental Units City of San Bernardino Very Low Low Moderate Income Income Income County Median Income(4 Person Household) $64,500 $64,500 $64,500 °%of County Median Income 50% 70% 110% Annual Gross Income $32,250 $45,150 $70,950 %of Income to Housing 30% 30% 35% Annual Housing Cost $9,675 $13,545 $24,833 Monthly Housing Cost $806 $1,129 $2,069 Less: Utilities $157 $157 $157 Available for Monthly Rent $649 $972 $1,912 Median Rent for a 3 Bedroom Unit' $1,200 $1,200 $1,200 Unfunded Gap between affordable and median rent $551 $228 NIA 'ZilPy.com Source:State Income Limits for 2009 published by the California Department of Housing and Community Development, and Zilpy.com Affordable Housing Analysis for Ownership Units City of San Bernardino Very Low Low Moderate Income Income Income County Median Income 14 Person Household) $64,500 $64,500 $64,500 %of County Median Income 50% 70% 110% Annual Gross Income $32,250 $45,150 $70,950 %of Income to Housing 30% 30% 35% Annual Housing Cost $9,675 $13,545 $24,833 Monthly Housing Cost $806 $1,129 $2,069 Less: Property Taxes 1.15% ($56) ($101) ($234) Insurance 0.30% (S53) ($53) ($53) HOA fees ($200) ($200) ($200) Utilities ($167) $157 $157 Available for Mortgage $341 $618 $1,426 Qualified Mortgage(30 year amortizing loan) 650% $53,931 $97,775 $225,638 Down Payment 5.00% $2,838 $5,146 $11,876 Total Affordable Home Price $56,769 $102,921 $237,514 Median Cost of SFR in City of San Bernardino $91,288 $91,288 $91,288 Unfunded Gap between affordable pdce and median cost $34,519 NIA NIA Source:State Income Limits for 2009 published by the California Department of Housing and Community Development 94 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 Number Households by Income Category City of San Bernardino Income Category' Incomez Households %of Total Very Low Less than$34,999 31,040 55.04% Low $35,000 -$49,900 9,202 16.32% Moderate $50,000 -$74,999 8,929 15.83% Above Moderate More than $75,000 7,220 12.80% Total 56,391 100.00% ' Based upon a four person household and a median income of$64,500. I Very low, low, and moderate incomes may not exceed $33,300, $53,300, and $77,400 respectively. Ranges may not be exact due to the format of availble Census data. Source:State Income Limits for 2009 published by the Califo ring Department of Housing and Community Development, and 2000 US Census Data 95 San , , . s . ..- ®Agency Five Year yg . Implementation m . . . . :v f ' gym ■ § f § # ■ 6 ) # # # £ \ E § } i } k 4 ) \ E z _ _ f § } � ) J { ! 2 $- 2s, { ! 2 ; f | ) )§ )OZO s \ \ \ { ) ) ! ! ! } 2 \ \ \ 2 ) \ \ \ § Z f 7 | 0 E L. EOE} ) 96 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 dbSa w APPENDIX 3: HOUSING PRODUCTION TABLES 97 � w | , !, . . ! , - !\ .,. !ll . . . . . . , , , . � . . . r . , . . . . en . . . 2R ! - pl . : |I� _ { } , E I ! ! | i | - ; ! MA � • | | R � ) # = � ee� � � ( � j/ j \ • " g; & : ! ! - ] / { i | ! / ) \ � § a / { %@ / / © G £ E §\ a , iR [! , ,, - -_ !! )! li ,: !| - ! 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ME MEN ME - � !; � � \/ ` ° ® � . , . . : _ - • � � ( : / ` 0 ME a IME a } | | g § § � } � i §r29J Ramat § J § § e5b # , ; n \\\ \ § \ � .� g B § § / A& � • © _ & Q pl22 4 . : # _. = | . / _. @ a% 9 � ) / ■ , I a ... , ! !. - !i ) . . . r . . . . . . , . . , « , �• �� •' || .; � | � | � !!!! !■ ! !. •• ! !. !! ! §: Am . ■ eIs \ § lag v \ / • . \ \ 9## gggQ " ee § \ § #RR ! ° / aehaRe@ ' 'A I�Z _ �® M IMI , \ San Bernardino Redevelopment Agency 1 4 Five Year Implementation Plan:FY 2009- r through 2013-14 >. y®Nenar APPENDIX 4: INCLUSIONARY HOUSING UNIT INVENTORY 102 Redevelopment San Bernardino Five Year Implemenlalion Plan�FY II I Ih,ou,li 1,,,- ��Bfin6 IM APPENDIX 4 LIST OF INCLUSIONARY HOUSING UNITS SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY n Project Is Units pUnits 9 o Units Tout B of Units Covenant Expiration r Projects Ana Very Low Low Mod W/CCR's Date Total Predi te Total VM dii Total rredded Total I QWited Through 1994 HornebuyerAssistance 0266 E 27th Street IVDA 1.0 1.0 1.0 1.0 11/28/2024 Homeb Assistance 0636 E Trenton Street IVDA 1.0 1.0 1.0 1.0 12/12/2024 Homeb Assistance 1189 East Chesmu[St IVDA 1.0 1.0 1.0 1.0 3/7/2024 Homebu rAssistance 1339 N Siena Way rVDA 1.0 1.0 1.0 1.0 W1]2024 Homeb rAssistance 1649 Seine Avenue IVDA 1.0 1.0 1.0 1.0 11232023 Homebu rAssistance 2036 E 17th Street IVDA 1.0 1.0 1.0 1.0 11/172024 Homebu Assistance 2604 E 29th Street IVDA 1.0 1.0 1.0 1.0 12/202023 Homeb Assistance 2745 Lawrence Avenue IVDA 1.0 1.0 1.0 1.0 11/3/2024 Homeb Assistance 2970 Harmw Street IVDA 1.0 1.0 1.0 1.0 9292024 Homeb rAsslstance 2980 Harrison Street IVDA 1.0 1.0 1.0 1.0 2252024 Homebu r Assistance 0962 West 10th Street MTV 1.0 1.0 1.0 1.0 12/212024 Homebu Assistance 1004 West 681 Street MTV 1.0 1.0 1.0 1.0 2/122024 New Comtrwfion 1645 Susie Lane NW 1.0 1.0 1.0 1.0 10292023 Home rAssistance 1405 West Keystone Or SC 1.0 1.0 1.0 1.0 12]2024 Homebu rAsslslance 5151 North Tamarroo Court SC 1.0 1 1.0 1.0 VM024 New Combuction 5560 WestWW Drive SC I i i 1.0 1.0 1.0 1.0 12212023 Homebu Assistance 5589 North Magnolia SC 1.0 1.0 1.0 1 1.0 1772024 Homebu rAssistance 1238-1254 Sierra UPT 5.0 1 5.0 5.0 5.0 8/62023 Subtotal 1 1.0 1 1.0 9.0 1 9.0 12.0 12.0 22.0 1 22.0 1995 8 1996 New Construction 1682 Pennsylvania Avenue NW 1.0 1.0 1.0 1 1.0 6/12/2026 New Construction 1729 Pennsylvania Street NW 1.0 1.0 1.0 1 1.0 1 4282025 Hormbuyer Assistance 1153 West Dover Or SC 1.0 1.0 1.0 1.0 8/102025 Homebu r Assistance 1437 West Marshall Blvd SC 1.0 1.0 1.0 1.0 3262026 Homeb rAssistance 1518 Yardley SC 1.0 1.0 1NO. ,0 10 9/102026 Homebu rAssistance 5072 C to Lam SC 1.0 1.0 &202026 Homebu rASSisMrlce 5523 North Cedar Drive SC 1.0 1.0 2/8/2026 Nev,CorretructIon 5535 North Osborne Court Sc 1.0 1.0 4/242025 Nev,Comtruclion 5583 North Cedar Drive Sc 1.0 1.0 101252025 Home rAssistance 2273 North Lugo Avenm UPT 1.0 1.0 10/112026 Subtouil OA 0.0 4.0 4.0 6.0 80 199] Homebuyer ASSistance 1139 Hancock NW 1.0 1 1.0 1 1 1 1.0 1 027 Subtotal I 1 0.0 1 0.0 1 1.0 1 1.0 1 0.0 1 0.0 1 1.0 1 1.0 1988 New Construction 5536 Westwind Drive Sc I I 1.0 1 1.0 1 1 1.0 1.0 4/272028 Subtotal 1 00 1 0.0 1 1.0 1 1.0 1 0.0 1 0.0 1 1.0 1 1.0 1999 Hornebuyar Assistance 10603 West 8th Street 1 CCN 1,0 1.0 1.0 1.0 9/14/2029 Ac ueiVSubst Rehab 11315 Warner Dore I SC 1 1.0 1 1.0 1 1.0 1 1.0 112/2029 New Constmction 1497 West Lake Made Dave SC ka 1.0 1.0 1.0 81252010 Subtotal OA 0.0. 3.0 30 0.0 0 2000 Hornebuyer Assistance 0721 East 2nd Street CC 1.0 1.0 1.0 1.0 4/32010 Rental AOrd Covemrt 0560 North F Street-PioneerP CCN 12 10 1.D 1.0 11/12055 MuIR-Famll Constructon 1540 W Baseline-SB Senior Hs NW 73.0 73.0 1.0 1.0 74.0 74.0 SN2055 ulsit Subst Rehab 1445 Kendall Drive SC 1.0 1.0 1.0 1.0 10252010 A ulslUSubsl Rehab 1458 Mo an Road SC 1.0 1.0 1.0 1.0 12/18/2010 Ac uisIVSubst Rehab 1456 Sheridan Road Sc 1.0 1.0 1.0 1.0 9252010 Homebu r Assistance 1470 Creekside DN" SC 1.0 1.0 1.0 1.0 8/1412010 Homebu rAssistance 1478Creekside Drive Sc 1.0 1A 1.0 1.0 5112/2010 A usiVSubsl Rehab 1487 Lake Placid Road SC 1.0 1.0 1.0 1.0 8/252010 Ac u1sNSubsl Rehab 1527 Sheridan SC 1.0 1.0 1.0 1.0 9112010 Homeb Assistaxe 1531 Sheridan Read SIC 1.0 1.0 1.0 1.0 5162010 AoculsitlSubst Rehab 1565 West Windsor Street SC 1.0 1.0 1.0 1.0 8/32010 Homebu rASSistance 15]9 Kendall Drive SC 1.0 1.0 7/12010 Ac uisiVSUbsI Rehab 4705 North Windsor SC 1.0 1.0 1.0 1.0 1022010 Homebu rASSislance 5172 Lakewood Drive SC 1.0 1.0 1.0 1.0 10/3/2010 Subtotal 75.0 75.0 7.0 7.0 6.0 6.0 1 68.0 1 86.0 103 �I. San Bernardino Redevelopment Agency Five Yew Implementation Plan: FY 2009- t t hrough 2013 �� IM APPENDIX 4(Continued) LIST OF INCLUSIONARY HOUSING UNITS SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY Y Projects Project #Units Nunis pot Units Total#o/Units Covenant f Area Very Low Low Mod W/CCR's Expiration Dale Total redl Total redile Total I>etlite Total I Crediletl 2001 HomeO ,Assistance 11380 48th Street#105 SC 1.0 1.0 10 10 8/9/2011 Homeb ,Assistance 1462 Shorten Road SC 1.0 1.0 1.0 1.0 6125/2011 New Construction 1468 Lake Placid Dave I SC I 1.0 1.0 1 11 41912011 Homebuyer Assistance 11494 Steamboat Sc; 1 1.0 1 1.0 1 1.0 1 1.0 25/2011 Subtotal 3.0 3.0 1.0 1.0 0.0 0.0 4.0 4.0 2002 Rental ABrtl Covenant 0602 W 6th Street.Telacu I CCN 74.0 74.0 74.0 ]d.0 11712057 Rental Af rd Covenant 0750 West 4th St-Telacu ll CCN 74.0 74.0 79.0 74.0 12116/2057 AcquisitlSubst Rehab 0664 West 16th Street IVDA 1.0 1.0 1.0 1.0 8/512047 AoqulsiVSubst Rehab 1180RIa0o Avenue IVDA 1.0 1.0 1.0 1.0 45/2047 uisiVSubst Rehab 1326 Penis Street IVDA 1.0 1.0 1.0 1.0 _12/18/204] A uisit/Subst Rehab 1726 N Mountain View Aw IVDA 1.0 1.0 1.0 1.0 9%154041 Homebu rASSistarce 2104 Sundae Lane#13 IVDA 1.0 1.0 1.0 1.0 m25/2057 Acquisit/Subsl Rehab 1272 West Unbn Street MN 1.0 1.0 1.0 1.0 9/9/2047 New Construction 1617 North Clyde Street NW 1.0 1.0 160 1.0 1218/2047 New Construction 1657 North Clyde Streel NW 1.0 1.0 1.0 1.0 12118/2047 Acquisit/Subst Rehab 18%West 17th Street NW 1.0 1.0 1.0 1.0 12120/2047 _._ _ Acquisit/Subst Rehab 0348 West 13th Street UPT 1.0 1.0 1.0 1.0 51.2.1/_2047 Sublood 148.0 148.0 1.0 1.0 9.0 9.0 158A 156.0 2003 _ Acquish/Subst Rehab 1387 Se Iveda A 8 B IVDA 1 1.0 1.0 1.0 1.0 11212048 Ac uisb/Subst Rehab 1550 North Pershing Avenue IVDA 1.0 1.0 1.0 1.0 3/262048 Ac uisNSubsl Rehab 1198 West 8th Street MN 1.0 1.0 1.0 1.0 123@048 New Construction 1631 North Glerwiew Street NW 1.0 1.0 1.0 1.0 2212048 New Constructon 1642 North C Street NW 1.0 1.0 1.0 1.0 1/10/2048 New Construction 1668 North Gle.iew Street NW 1.0 1.0 1.0 1.0 1/31/2048 New Construction 1669 North Clyde Street NW 1.0 1.0 1.0 1.0 1120/2048 Acuisit/Subst Rehab 1804 West nth Street NW 1.0 1.0 1.0 1.0 1124/2048 Acquisit/Subsl Rehab 1842 West 17th Street NW 1.0 1.0 1.0 1.0 12411948 Subtotal 0.0 0.0 1.0 1.0 8.0 8.0 9.0 9.0 Through June 30,2004 Rental AOrd Covenant 0550 W 5th SD St Bernardine CCN 14]0 147.0 2.0 20 1 0 1.0 150.0 150.0 5/4/2019 Rental ARrb Covenant Telacu III ]4 0 74.0 611612059 Subtotal 1221.0 1 221.0 1 2.0 1 2.0 1 1.0 1 1.0 224.0 224.0 Through June 30,2005 None Through 05106 None Through 06107 _ Homebu ,Assistance 155 E 2nd Street - - IVDA 1.0 10 1.0 1.0 7/18/2051 Homebu rAssistance 199 E Kin Street IVDA 1.0 1.0 1.0 1.0 ]212051 Homebu rAssistance 201 EKin Street IVDA 1.0 10 1.0 1.0 7/1]/2051 HonnebuyerAssistance 188NAIIen Street IVDA I I I 1 1.0 1.0 1.0 1.0 9/2512051 Subtotal 1 0.0 1 0.0 1 0.0 1 0.0 1 4.0 4.0 1 4.0 1 4.0 Through 0]/OB __ None 104 San Bernardino Redevelopment Agency Five Year Implementation Plan: FY 2009*10 through 2013-14 Sae Bona tr APPENDIX 4(Continued) LIST OF INCLUSIONARY HOUSING UNITS g SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY C Projects Project #Units #Units #ot Units Total#o/Units Covenant F Area Very Low Low Mad WI CCR's Expiration Date _ _ Total red( Throu hO8109 Total recifte Total --edte Total Credited New Construction 280 E 49th Street 40th 1.0 1.0 1.0 1.0 12/912053 New Construction 283 49th Street _ 40th 1.0 1 LO 1.0 1.0 12/3/2053 New Construction 284 E 49th Street 4001 1.0 1 1.0 1.0 1.0 12/10Y2053 New Construction 275 E 49th Street 40th 1.0 1 1.0 1.0 1.0 12/154053 New ConstnX.UOn 283 E 49th Straet 4011h 1.0 1 1.0 1.0 1.0 11/19/2053 New Construction 271 E 49th Street 40th 1.0 1.0 1.0 1.0 6/4/2054 New Construction 279 East 49th Street - 40th 1.0 1.0 1.0 1.0 12/2/2053 New Construction 267 East 49th Street 40th 1.0 1.0 1.0 1.0 1111412053 New Construction 148-150 E Third Street CCE 1.0 1.0 1.0 1.0 920/2053 New COrrstruction 1517E Way IVDA 1.0 1.0 LO 1.0 S/S•2054 New Construction 1503 Lynwood Way IVDA 1.0 LO 1.0 1.0 2254054 New Consinatlon 1555 L wood Way IVDA 1.0 1.0 1.0 1.0 1215/2653 New Construction 377 E Gilbert St IVDA 89.0 89.0 89.0 89.0 315/2064 Now Construction 3225 Gre tone N/A 1A 0.5 1.0 0.5 11/182053 New Construction 3249 Greystone Read WA 1 1.0 0.5 1.0 O.5 61192054 New Construction 25W Christine WA 1.0 0.5 1.0 0.5 9/42053 New Consbucion 6803 N Shannon Lane N/A 1.0 0.5 1.0 0.5 702053 $u1l1eMl 88.0 .0 1.0 1.0 15.0 13.0 1 105.0 1 103.0 Ad June 30,2009 option Through TOTAL 536 536 22 22 49 47 629.0 1 627.0 105 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 00 i Jo& iw APPENDIX S: REPLACEMENT HOUSING TABLES 106 San Bernardino Redevelopment Five Year Iniplemonlalion Plan:FY 20119,111 . 1 tian Berm Iw APPENDIX 5 INVENTORY OF REPLACEMENT HOUSING UNITS Address Project #of Units Total#of Very-Low Moderate Area A lied Bedrooms Units Low Units Units Replacement Units Through 1999(under 75%rule) 2355 Osbun Rd. -Highland Lutheran- Eden Ctr IVDA 50 50 25 25 244 52nd at No 1 2 1 290 36th at No 1 2 1 294 55th at No 1 4 1 360 48th at No 1 4 1 363 29th at No 1 2 1 388 Prospect eve No 1 3 1 1389 Alto ct No 1 4 1 394 Prospect No 1 3 1 424 Burney st No 1 3 1 536 Dallas ave No 1 4 1 537 Dallas ave No 1 3 1 582 San Carlo ave No 1 3 1 583 Dallas ave No 1 4 1 595 Dallas No 1 4 1 597 Macy st No 1 1 655 Dallas ave No 1 3 1 -- 717 La Porte ave No 1 3 1 `- 724 26th st No 1 3 1 727 Ramona ave No 1 2 1 754 W Northpark Blvd No 1 3 1 795 Pepper ave No 1 4 1 872 31st at No 1 3 1 895 W Northpark Blvd No 1 4 1 955 41st St No 1 3 1 1005 Sunbrook dr No 1 4 1 1005 Suncrest Circle No 1 4 1 1022 Sunbrook No 1 4 1 1042 Suncrest dr No 1 3 1 1119 Montrose Ave No 1 3 1 1154 15th st No 1 2 1 1165 Mesa Verde ave No 1 3 1 1195 33rd at No 1 3 1 1197 Mesa Verde Ave No 1 2 1 1220 14th at No 1 3 1 1245 Lynwood dr No 1 2 1 1246 Edgemont dr No 1 2 1 1250 Marshall Blvd No 1 2 1 1265 27th st No 1 3 1 1284 Edgemom dr No 1 3 1 1288 Blackstone ave No 1 2 1 1423 Colorado ave No 1 3 1 1447 Temple st No 1 4 1 1488 9th at o (p"' 1 1 107 San Bernardino Redevelopment Five Year Implementation Plan:FY 200 9-10 through 2013-14 15 Btn lw APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Address Project #of Units Total#of Very-Low Low Units Moderate Area Applied Bedrooms Units Units 1488 Temple No 1 4 1 1506 Union st _ No 1 3 1 1519 8th st-Ramona Senior Complex No 44 44 22 22 _ 1594 California ave No 1 3 1 _ 1649 Davidson st No 1 4 1 1763 Pico ave No 1 3 1 _ 2037 Lincoln dr No 1 2 1 2267 Greenwood at No 1 3 1 2346 Elodam ct No 1 3 1 2349 Atchison st No 1 3 1 2354 College ave No 1 4 1 2419 Deanna dr No 1 3 2436 G st No 1 2 1 2524 E st No 1 2 1 2555 Berkeley ave No 1 2 1 2556 Union st No 1 3 1 2562 1 st No 1 3 1 2611 F st No 1 3 1 2665 White Pine ave No 1 4 1 2674 White Pine ave No 1 3 1 2722 White Pine No 1 4 1 2744 Duffy st No 1 4 1 J 2746 Duffy at No 1 4 1 2748 7th at No 1 4 1 2761 Genevieve No 1 3 1 2765 Arrowhead No 1 3 1 2772 Cincinnati st No 1 3 1 2808 D st No 1 2 1 2814 Cincinnati st No 1 3 1 2615 Gardena at No 1 4 1 2832 Lincoln dr No 1 2 1 2845 Sepulveda ave No 1 2 1 2895 Lugo ave No 1 2 1 2895 Etiwanda ave No 1 4 1 2909 Parkside pl No 1 3 1 2976 Pinon ct No 1 3 1 3072 Davidson No 1 3 1 3076 Sierra Way No 1 3 1 3087 G at No 1 2 1 3119 Genevieve st No 1 2 1 3119 Casa Loma dr No 1 3 1 3128 Casa Loma dr No 1 3 1 3138 Rockford ave No 1 3 1 3164 F st No 1 1 1 O 108 2009-San Bernardino Redevelopment Agency 1 through 20 11-11 �aa Rerear iw APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Address Project #of Units Total#of Very-Low Moderate Area Applied Bedrooms Units Low Units Units 3172 Mary Ann Lane No 1 3 1 3174 Mansfield ave _ _ _ No 1 - 2- -- _ - 1 3275 F at No 1 2 1 3299 Conejo dr No 1 2 1 3389 Mayfield ave No 1 2 1 3405 Fairfax dr No 1 4 1 3456 Sierra Way No 1 3 1 3479 Acacia ave No 1 3 1 3588 Sepulveda ave No 1 3 1 3655 Mayfield ave No 1 3 1 3670 Camellia dr No 1 2 1 3938 Conejo dr No 1 3 1 3979 Femdale ave No 1 3 1 4253 Mountain View Ave No 1 3 1 4579 Pershing No 1 3 1 4609 Sepulveda ave No 1 2 1 4724 Pershing ave No 1 2 1 4945 E st No 1 3 1 4946 Stoddard rd No 1 4 1 4994 Mayfield ave No 1 4 1 O 5005 D st No 1 4 1 5215 Genevieve No 1 2 1 5216 Revere ave No 1 4 1 5227 Sierra Mesa rd No 1 3 1 5294 H at No 1 4 1 5394 Lantern Crest Dr No 1 4 1 5473 Aster at No 1 3 1 5473 Jesse dr No 1 3 1 5534 Mayfield ave No 1 4 1 5537 Ladera rd No 1 4 1 5547 Ladera ct No 1 4 1 5557 Ladera Rd No 1 3 1 5605 Surrey Lane No 1 4 1 5825 Booth Pine Way No 1 4 1 5829 Medto Ave No 1 3 1 5964 Walnut ave No 1 3 1 62541ndigo pl No 1 3 1 6424 Churchill st No 1 3 1 6947 Elmwood rd No 1 2 1 1 to 75 ut ne No 1 3 1 109 San Bernardino Redevelopment Agency it FiN e Year Implementation Plan:FY 11 I through 2013-14 ua Berear in APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Address Project 0 of Units Total tt of Very Low- Moderate- Area Applied Bedrooms Units Low•Units Units Replacement Units From 1999 through June 30,2004(at 100%of same income type or lower) 72121 at st cc 1 3 1 123 2nd at IVDA 1 3 1 _ 132 King St IVDA 1 3 1 185 2nd St IVDA 1 3 150 King St IVDA 1 3 1 120 Rialto Ave IVDA 1 3 1 162 Wabash IVDA 5 6 4 1 168 Allen St IVDA 1 3 174 Allen St IVDA 1 3 1 186 King St IVDA 1 3 1 192 King St IVDA 1 3 1 197 27th at IVDA 1 2 1 202 Temple at IVDA 1 3 1 230-234 E. 14th St(CCLM) IVDA 1 2 1 248-252 Wabash IVDA 1 3 1 267 Olive st IVDA 1 2 1 355 23rd at IVDA 1 6 1 361 16th st IVDA 1 3 1 395 Wabash Ave(CCLM) IVDA 1 2 1 415 23rd at IVDA 1 3 448 23rd at IVDA 1 3 1 636 Evans st IVDA 1 3 1 646 14th St CCLM) IVDA 1 4 1 668 14th St(CCLM) IVDA 1 2 1 831 K at IVDA 1 2 1 951 Crescent IVDA 6 12 6 1075 9th st IVDA 1 3 1 1090 151h St(CCLM) IVDA 1 2 1 1149 Rialto ave IVDA 1 2 1 1153 Congress IVDA 1 4 1 1 1159 Rialto ave IVDA 1 3 1 1229 Rialto ave IVDA 1 3 1 1291 Lugo ave IVDA 1 2 1 1292 Genevieve St(CCLM) IVDA 1 2 1 1331 Mt,View IVDA 3 3 3 1359-1361 Oak at IVDA 2 4 1 1 1364 9th st IVDA 1 4 1 1365 9th st IVDA 1 2 1 1375 Crescent ave IVDA 1 3 1 1441-1449 Mt View IVDA 2 4 2 110 San Bernardino Redevelopment Agency Five Year Implemenlabon Plan: 1 r through 2013-14 r +► Sao Rernar ib APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Address Project #of Units Total#of Very-Low Low Units Moderate Area Applied Bedrooms Units Units 1495 Mountain View(NHS) IVDA 4 4 2 2 1501-1503 Pershing_ IVDA 2 4 2 _ 1556 Ml.View IVDA 1 3 1 1650 Sierra Way IVDA 1 3 1 1662 Sierra Way IVDA 1 3 1 1763 Conejo dr IVDA 1 2 1 2369 Leroy at IVDA 1 3 1 2696 Genevieve st IVDA 1 3 1 1139 Penis St(CCLM) MTV 1 6 1 222 Rancho Glen Aire No 131 262 131 2565 Foothill Sequoia No 240 480 240 135 San Anselmo No 1 3 1 109 E King St No 1 3 1 168 Whipple Mountain rd No 1 2 1 202-208 43rd st No 2 4 1 1 207 28th st No 1 2 1 230 30th st No 1 2 1 235 Sidewinder Mtn Rd No 1 3 1 235 48th at No 1 3 1 236 44th 51 No 1 2 1 241 Larkspur dr No 1 2 1 243 43rd st No 1 2 1 244 45th at No 1 3 1 245 Iris at No 1 3 1 249 Larkspur dr No 1 2 1 252 48th st No 1 4 1 255 36th at No 1 3 1 256 Ardmore st No 1 2 1 264 44th at No 1 2 1 272 Larkspur dr No 1 3 1 279 48th st No 1 3 1 281 27th at No 1 3 1 284 44th st No 1 3 1 291 42nd st No 1 3 1 291 44st at No 1 3 1 298 39th st No 1 2 1 306 48th st No 1 4 1 323 49th st No 1 4 1 323 Country Club Lane No 1 2 1 340 35th st No 1 2 1 357 Terrace rd No 1 4 1 393 28th st. No 1 2 1 444 Rancho ave No 1 4 1 444 Slate st No 1 4 1 515 Country Club Lane No 1 2 1 563 25th st - No 1 4 1 572 25th st No 1 2 1 C 587 Lassen ave No 1 3 1 603 Meridian No 1 3 1 603 Dallas ave No 1 3 1 111 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY 2009-10 through 2013-14 Ah BWW B IN APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Address Project #of Units Total#of Very-Low Moderate Area Applied Bedrooms Units Low Units Units 624 28th st _ No _ _1 _3 1 646 36th st _ __ No 1 2 1 720 Medical Center - -_ - - No 1 3 1 734 Dallas ave _ No 1 3 1 764 20th st _ No 1 2 764 Macy st _ No 1 4 1 772 21 st s1 No 1 2 1 808 26th at No 1 3 1 81621st st No 1 2 1 818 26th st No 1 2 1 830 San Carlo No 1 3 1 839 30th st No 1 2 1 848 31 st st No 1 2 1 864 18th st No 1 2 1 872 29th st No 1 3 1 907 26th at No 1 2 1 908 25th st No 1 2 1 919 28th at No 1 2 1 934 Mirada Rd No 1 2 1 955 Pico ave No 1 2 1 971 27th at No 1 2 1 1023 Sunbrook No 1 4 1 1033 25th st No 1 2 1 1035 Western ave No 1 3 1 1043 24th st No 1 2 1 1053 Medical Center dr No 1 2 1 1 1059 56th st No 1 4 1 1112 15th st No 1 2 1 1118 16th st No 1 2 1 1153 15th st No 1 3 1 1159 16th st No 1 2 1 1197 Cummings Way No 1 2 1 1221 Lomita rd No 1 2 1 1265 Oakwood dr No 1 2 1 1266 24th St. No 1 3 1 1270 24th st No 1 1 3 1 1 1275 34th st No 1 3 1 1279 Lomita rd No 1 3 1 1282 24th st No 1 3 1 1287 Colima rd No 1 2 1 1297 24th st No 1 3 1 1344 Maple st No 1 3 1 1349 Reece st No 1 2 1 1349 15th st No 1 3 1 1361 Arizona ave No 1 3 1 1363 13th at No 1 1 2 1 1 1364 35th st No 1 3 1 141510th st No 1 2 1 1442 Evans at No 1 3 1 ! 1463 101h at No 1 3 1 112 San Bernardino Redevelopment Five Year Implementation Plan:FY 2009-10 through 2013-14 r t;. Sao Beroar itm APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Project #of Units Total#of Very-Low Moderate Address Area Applied Bedrooms Units Low Units Units 1479 10th st _ No _ 1 3 1 1480 Marshall,Unit#13 No 1 3 - 1 1487 151h at No 1 3 - 1 1488 10th at _ No 1 3 1 1531 Evans st No 1 4 1 1545 Alto dr _ No 1 4 1 1557 21st st No 1 2 1 157021 st at No 1 3 1 1612 Colima rd No 1 4 1 1650 Porter st No 1 3 1 1690 19th st No 1 3 1 1708 Porter st No 1 3 1 1711 7th st No 1 3 1 1743 Herrington Ave No 1 3 1 1768 27th at No 1 3 1 1791 Mallory st No 1 4 1 1817 Porter st No 1 3 1 1820 Pico st No 1 2 1 1837 Virginia No 1 4 1 1850 Belmont ct No 1 3 1 1879 Herrington ave No 1 4 1 1889 Pico ave No 1 1 1 1905 Poplar st No 1 3' 1 1911 Deer Creek dr No 1 3 1 1955 Clark Mountain rd No 1 3 1 1957 141h st No 1 3 1 2026 Medical Center Dr No 1 3 1 2045 Universal ave No 1 3 1 2049 151h st No 1 3 1 2054 Teak cl No 1 2 1 2131 Chestnut st No 1 3 1 2160 Rialto No 61 61 61 2170 Hanford st No 1 3 1 2180 Grand ave No 1 3 1 2195 Hanford No 1 3 1 2204 Mill st No 1 4 1 2214 Chatka Lane No 1 3 1 2227 Oregon at No 1 3 1 2257 3rd st No 1 3 1 2270 Muscupiabe dr No 1 2 1 2277 Adams at No 1 3 1 2321 Spruce at No 1 3 1 2330 Serrano rd No 1 3 1 2341 Walnut at No 1 3 1 2364 San Anselmo No 1 3 1 2365 Oregon st No 1 2 1 2383 Duffy st No 1 5 1 �^- 2398 Victoria st No 1 3 1 (fir 2405 San Carlo No 1 3 1 113 San Bernardino Redevelopment Agency Five Year Implementation Plan: PY 2009-10 through 2013-14 San 6ernar Iw APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Project #of Units Total#of Very-Low Moderate Address Area Applied Bedrooms Units Low Units Units 2406 6th st No 1 3 1 2423 6th st No 1 3 1 2426 San Anselmo ave No 1 3 1 2438 Victoria ave No 1 4 2454 Victoria ave No 1 3 1 _ 2460 Muscupiabe dr No 1 3 1 2462 Victoria at No 1 5 1 2473 Duffy st No 1 4 1 2476 San Benito ave No 1 3 1 2494 San Benito ave No 1 3 1 2504 Duffy st No 1 4 1 2534 Saint Elmo dr No 1 3 1 2535 6th st No 1 3 1 2542 Union at No 1 4 1 2543 Flores at No 1 3 1 2544 Poplar at No 1 3 1 2558 Duffy st No 1 4 1 2564 Spruce at No 1 4 1 25741 at No 1 3 1 2576 Pennsylvania No 1 3 1 2602 Pennsylvania No 1 3 1 2618 Etiwanda ave No 1 3 1 2635 Cardamon st No 1 4 1 2639 San Anselmo No 1 4 1 2645 7th st No 1 3 1 2645 Pleasant Way No 1 3 1 2648 Etiwanda ave No 1 4 1 2656 Torrey Pine rd No 1 4 1 2669(White)Torrey Pine No 1 4 1 2674 Shadow Hills No 1 1 1 2675 Shadow Hills Dr.#69 No 1 1 1 2686 Mill St-Rancho Meridian No 142 142 67 39 36 2704 Serrano rd No 1 3 1 2705 San Anselmo No 1 4 1 2706 Stoddard No 1 3 1 2715 Sunflower ave No 1 3 1 2716 5th st No 1 3 1 2717 6th at No 1 4 1 2718 Lincoln dr No 1 2 1 2740 Lincoln dr No 1 3 1 27451st No 1 2 1 2748D st No 1 2 1 2748 H st No 1 3 1 2756 Berkeley ave No 1 2 1 2760 5th st No 1 3 1 2768 Victoria st No 1 3 1 2769 Davidson I No 1 1 2 1 2776 Genevieve at No 1 1 3 1 4 114 Redevelopment San Bernardino Five Year liuplcm�nlsl ion Plan: FY rr r through 2013-14 Lid APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Project #of Units Total#of Very-Low Moderate Address Area Applied Bedrooms Units Low Units Units 2777 Ladera ave No 1 3 1 2783 Arrowhead No 1 2 1 2787 Serrano rd No 1 2 1 2797"H"st No 1 2 1 2798 Lincoln dr No 1 2 1 2805 Glenview ave No 1 4 1 2807"G"at No 1 2 1 2808 Patterson Way No 1 3 1 2809 Davidson No 1 2 1 2811 Mountain View No 1 3 1 2823 G st No 1 2 1 2836 7th at No 1 4 1 , 2839 Acacia ave No 1 3 1 2844 Belmont ave No 1 2 1 2863 Etiwanda No 1 4 1 2865 Acacia ave No 1 3 1 2865 Colima rd No 1 4 1 2875 Acacia ave No 1 3 1 2879 Pershing ave No 1 2 1 2888 Lugo ave No 1 2 1 2901 Gamer ave No 1 2 1 2908 D st No 1 4 1 2908 H at No 1 2 1 2923 Gardena at No 1 2 1 2925 Pershing No 1 3 1 2925 Lugo ave No 1 2 1 2931 Mt.View ave No 1 3 1 2931 Havasu ct No 1 4 1 2936 F at No 1 3 1 2939 Sierra Way No 1 3 1 2939 Sepulveda ave No 1 2 1 2943 1 st No 1 2 1 2946 Lincoln dr No 1 3 1 2947 Genevieve st _ No 1__ 2 1 2976 G at N 9 1 - 2 1 3015 Sierra Way No 1 2 1 3016 Mountain View No 1 2 1 3028 Pico ave No 1 3 1 3047 Davidson _ No 1 2 1 3057 Pico ave NO 1 3 1 3079 California No 1 2 1 3085 Oregon st No 1 3 1 3094 Santolinas st No 1 3 1 3096 Stoddard st No 1 2 1 3135 Hicial o dr No 1 3 1 3151 Mountain View No 1 2 1 3160 Sanchez st No 1 3 1 3164 Pershing ave No 1 3 1 3327 Belle st No 1 == 1 Pershing No 1 3 1 115 San Bernardino Redevelopment Agency Five Year Implementation Plan:FY I through 2013-14 Sao 6erear iw APPENDIX 5 (continued) INVENTORY OF REPLACEMENT HOUSING UNITS Address Project #of Units Total#of Very-Low Moderate Area Applied Bedrooms Units Low Units Units 3418"E"st No 1 2 1 _ 3423 Wall eve No 1 3 _ 1 3472 Mountain ave _ No 1 3 1 3535 Arrowhead Ave _ No 1 3 - -- -- - 1 3539 Golden ave _ No 1 2 1 3548"D"at No 1 2 1 3567 Genevieve st No 1 3 1 3639 Sierra Way No 1 3 1 3649 Belle st No 1 2 1 3782 Modesto dr No 1 3 1 3795 Camellia dr No 1 2 1 3899 Sierra Way No 1 3 1 3961 San Benito at No 1 3 1 4116 Mountain Dr.(County) _ No 1 2 1 4276 Cristy ave No 1 2 - - 1 4294 Don Pablo ct No 1 3 1 4410 Sepulveda ave No 1 3 1 4482 Acapulco at No 1 4 1 4531 Sepulveda ave No 1 2 __ _1 4656 D at No 1 3 1 4718 D at No 1 1 4 1 4830 Christy ave No 1 3 1 O 5050 D at No 1 3 1 5536 Ladera rd No 1 4 __ 1 5648 Surrey Lane No 1 3 1 5858 Jesse dr No 1 3 1 562 Union st UPT 1 3 1 - 1 Replacement Units From July 1,2004 through June 30,2009 214 4th st CCE 1 3 1 217 5th st CCE 1 3 1 1072nd at IVDA 1 3 1 1227 Rialto ave IVDA 1 1 1 151 2nd at IVDA 1 3 1 161 2nd st IVDA 1 4 1 168 Allen st IVDA 1 1 1 174 Allen st IVDA 1 1 1 186 King st IVDA 1 1 1 Highland Lutheran Senior Hsg IVDA 20 20 10 1 10 114 Via San Luis No 1 3 1 2619 Via San Miguel No 1 3 1 2635 Via San Miguel No 1 4 1 2652 Via San Carlos No 1 4 1 2655 Via San Miguel No 1 3 1 2666 Via San Carlos No 1 4 1 2669 Via San Miguel No 1 4 1 2674 Via San Carlos No 1 4 1 3224 Gre stone rd No 1 4 1 3248 Keystone rd No 1 4 1 766 San Carlo ave No 1 4 1 116 2009-San Bernardino Redevelopment Agency Five Year Implement ation Plan: FY APPENDIX 6: DECEMBER 712009 PUBLIC HEARING WRITTEN & VERBAL COMMENTS Redevelopment San Bernardino Five Year Implementation Plan:FY 2009-10 through 2013-14 San Unrnar iw PUBLIC COMMENTS AND RESPONSES December 7,too9 Public Hearing WRITTEN COMMENTS December 4, 2009 Letter from Seventh Street Developers On November 12, 2009, a conference call with Emil Marzullo, Interim Executive Director, and staff was held with Craig Furniss of Seventh Street Developers to explain how their concerns or issues were addressed by the certain sections in the Draft Implementation Plan and that staff would monitor the specified area for any further blighting conditions or inappropriate land use conditions. A letter of comment was received by the Agency on December 4, 2009 from Craig Fumiss of Seventh Street Developers, who wanted to be on record they had a commercial development in the 3rd Ward near the intersection of Waterman Avenue and Commercial Road, and had some recommendations for the Agency and City regarding the use of redevelopment funds and application of redevelopment efforts. When fully occupied, this development is expected to generate almost 350 jobs. They recommend that the Agency focus on the opportunity to transform a portion of the Auto Plaza Center area into a medical services center. The negative appearance of some of the existing retail buildings along Waterman Avenue hurt the image of the area and tends to deter medical offices from locating there as well as the failing infrastructure consisting of numerous potholes and deteriorating pavement. Another issue is they addressed is the need to upgrade access to high-speed Internet via fiber optic cable. The need to move electronic data quickly and easily is critical to attract and accommodate medical office facilities. With Loma Linda already locating some of its offices in the area, it would make sense to offer them the utilities that could expand their capabilities. Finally, they are concerned where their tax increment will be spent. The Agency reviewed these comments and they are addressed in the Implementation Plan under Programs for infrastructure upgrades and facade improvements as follows: • Market Feasibility and Land Use Analyses and Revitalization Strategy: Examine existing uses, ownerships, and zoning standards to identify development opportunity sites. Conduct market analysis for commercial revitalization. Review opportunities for grade separation of the rail line. Identify near-and long-term revitalization strategies based on market data and land use factors. • Waterman Avenue Corridor Improvements: Assembly/demolition/site clearance of various parcels of multiple owners to facilitate new development. FY 10-11 thru FY 12-13. Enter into a study agreement with a developer to study the feasibility of various types of development that would be of benefit to the surrounding neighborhood. • Public improvements: Install/upgrade signals; interconnecting and synchronizing existing traffic signals; traffic calming; right-of- way acquisition; new street construction; pavement new/rehab; street imps (s/w, c/g, ADA ramps, street lights, landscaping, drainage, irrigation); street realignment, widening, 118 `J San Bernardino Pedevelopment Agency Five Year Implementation Plan: FY rr r 8u M striping, elevation adjust; adjust D/Ws; sewer replacement/relocation; sewer study for sewer main; install/repair storm drain; channel widening; banner poles; bridge construction, reconstruction, repair; remove abandoned railroad tracks; construct grade separation; construct median; construct bike paths; sound walls. VERBAL COMMENTS RECEIVED BY STAFF DURING AND BEFORE 31-DAY COMMENT PERIOD PRIOR TO PUBLIC HEARING. San Manuel Band of Miasion Indiana(the'Tribe") Agency staff and the Mayor and Common Council members have been engaged in numerous discussions regarding the possibility and feasibility of redevelopment and development of the Tribe's holdings in the Downtown, specifically the former Penney Department Store and Tire/Battery/Auto Center in the Carousel Mail and other possible investments in the Downtown area and the area by their location of their casino by Victoria Avenue and Highland Avenue in the city. Currently, Agency staff and the Tribe have been working on determining if the former Penney Tire/Batter/Auto Center could be converted into a temporary Omnitrans transit/transfer station for bus patrons. Discussions continue with Omnitrans staff to determine the bus scheduling changes that would be necessary to implement the temporary transit/transfer station in the Downtown and what other supportive service agencies and city departments would be able to utilize the facility as a community outreach center. Housing Authority of the County of San Bernardino (the "County Housing Authority') Agency staff had several meetings with the staff of the County Housing Authority to discuss the future plans of the County Housing Authority with regards to two of their large public affordable housing projects in the City of San Bernardino: 1) Waterman Gardens, and 2) Medical Center. The projects both total approximately 550 dwelling units within the city and are being studied as possible redevelopment and/or substantial rehabilitation projects. The new development being considered is a mixture of single-family and multiple-family residential uses, commercial office, retail/commercial, and retail/service land uses. Additional subjects of discussion include the possibility of a joint-venture in the development of low/moderate income projects including senior housing, multiple-family housing, and single-family rehabilitation using non-profit development corporations or public financing authorities of both the Agency and the County Housing Authority, the development of joint projects using Neighborhood Stabilization Program funds to address the foreclosures in the city, and the development of projects on major corridors of the city to develop transit-oriented developments (TOD) . Redevelopment Agency of the County of San Bernardino (the "County Redevelopment Agency") and the Inland Valley Development Authority ("IVDA") During the past year, Agency staff and the Mayor and members of the Common Council have also had several meetings with the staff of the County Redevelopment Agency and two members of the Board of Supervisors regarding the future development and redevelopment of several County enclaves that are in the City's Sphere of Influence. Discussions and feasibility studies have been exchanged between the Agency and the County for the County enclave along 3rd Street and little 3rd Street by the northern entrance to the San Bernardino International Airport, regarding the lack of certain public improvements, 119 San Bernardino Redevelopment Agency fV Five Year Implementation Plan: FY 200 9-10 through 2013-1 Jao Beraar iw infrastructure, services, neighborhood identity, and deteriorated housing stock in the predominately low to moderate income area. Discussions between the agencies (the City/Agency, County Redevelopment Agency, and IVDA) have included the joint use of tax increment proceeds from their respective Housing Fund Accounts and Redevelopment Fund Accounts for the rehabilitation and redevelopment of the area. Another mutual interest area for the County and City includes the former County enclave of Arrowhead Springs Resort located at the northern boundary of the City accessed via Waterman Boulevard (State Highway 18 to Lake Arrowhead and Big Bear Lake). The 1,900-acre former resort hotel and grounds was an exclusive resort spa and recreation area for the early Hollywood stars and movie producers and is currently for sale to a buyer with the vision and commitment to refurbish/rehabilitate the hotel and spa to its former glory and vibrancy as a destination venue that would include affordable work-force housing, low to moderate income housing, and jobs in related commercial, office, recreational, and tourism developments. The Waterman corridor through the 401" Street Redevelopment Project Area would be planned and redeveloped to provide a revitalized commercial corridor developed with mixed-use developments including affordable housing projects at certain transit-oriented districts. 120 San E Redevelopment Five Year Implementation Plan:FY 200 9-10 through 2013-14 Community Development Commission Ecanamie Development Agency (Mayor&Common Council) Stall Contributors Patrick J.Morris, Chairperson Emil A.Marzullo,Interim Executive Mayor Director Don Gee,Deputy Director Esther Estrada,Commissioner Council Member-Ward I Carey Jenkins,Housing&Community Development Director Dennis J.Baxter, Commissioner Russ De Jesus,Interim Administrative Council Member-Ward 2 Services Sirector Kathleen Robles,Project Manager Tobin Brinker, Commissioner Council Member-Ward 3 Colin Strange, Project Manager Mike Trout,Project Manager Fred Shorett, Commissioner Council Member-Ward 4 Musibau Arogundade,Project Manager Lisa Connor,Assistant Project Manager Chas A.Kelley,Commissioner Council Member-Ward 5 Shannon Johnson,Administrative Analyst Rikke Van Johnson, Commissioner Jeffrey Smith, Senior Urban Planner Council Member-Ward 6 Lisa Sanford,Urban Planner Wendy McCammack, Commissioner John Oquendo,Urban Planner Council Member-Ward 7 Precilla Rani,GIS Analyst Prepared By: SiA IN PSG INTELLIGENT COMMUNITY DEVELOPMENT San Bernardino Economic Development Agency Felise Acosta, Principal C 201 North"E"Street, Suite 301 Tara Howard,Associate/Project Manager San Bernardino, CA 92401 Ken Lee,Senior Associate (909) 663-1044 www.sbrda.ore Adopted December 7, 2009 r^ Appendix 5 Tax Increment Projections � K M N N N 001 N h N v N Q ONi b Om . . 1 . . . 1 . 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