HomeMy WebLinkAboutR39-Economic Development Agency
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ECONOMIC DEVELOPMENT AG~CY
OF THE CITY OF SAN BERNARDINO !
FROM: Ronald E. Winkler, Director
Development Department
SUBJECT: RESOLUTIONS APPROVING THE
DRAFT PRELDMINARY REPORT,
REDEVELOPMENT PLAN, OWNER
P ARTICIP A TION PROCEDURES AND
METHOD OF REWCATION FOR THE
40m STREET REDEVEWPMENT
PROJECT AREA
DATE: December 8,1999
SvnoDsis oCPrevious Commission/Council/Committee Action(s):
On August 16, 1999, the Commission received and filed the feasibility study prepared by RSG, Inc. for the proposed 40"
Street Redevelopment Project; and the Mayor and Common Council approved Resolution No. 1999-216 designating a
survey area for redevelopment study purposes.
(SvnoDsis Continued to Next Palle...)
Recommended Motion(s):
(Community Develooment Commission)
MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING THE PRELIMINARY REPORT FOR THE PROPOSED 40TH
STREET REDEVELOPMENT PROJECT AREA AND DIRECTING THE TRANSMITTAL OF THE
PRELIMINARY REPORT TO THE AFFECTED TAXING AGENCIES
MOTION B: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING THE DRAFT REDEVELOPMENT PLAN FOR THE 40TH STREET
REDEVELOPMENT PROJECT AREA, AND AUTHORIZING TRANSMITTAL OF THE
PROPOSED REDEVELOPMENT PLAN TO AFFECTED TAXING AGENCIES, AND PERSONS
AND ORGANIZATIONS WITHIN THE PROJECT AREA AND SUBMITTAL TO THE PLANNING
COMMISSION FOR REPORT AND RECOMMENDATION
(Recommended Motions Continued on Next Page....)
Contact Person(s):
Project Area(s)
Gary Van Osdel/ R. Winkler
Proposed 40" Street
Phone:
5081
Ward(s):
Four (4)
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter/Memo
FUNDING REQUIREMENTS Amount: $
N/A
Source:
N/A
N/A
SIGNATURE:
Budget Authority:
Commission/CouncifNOtes:-------------------------------------------------------
GVO:REW:SMM:lag:99-12-20 40th St Prelim
COMMISSION MEETING AGENDA
Meeting Date: 12120/1999
Agenda Item Number: ~
/1/ ~~ e~ p
... ".
Request for Commission/Council Action
40th Street Preliminary Plan
November 30,1999
Page Number -2-
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Synopsis of Previous Commission/Council/Committee Action(s) Continued:
On September 20,1999 the Community Development Commission adopted Resolution No. 1999-34
accepting the preliminary plan; and the Mayor and Common Council approved Resolution No. 1999-
242 adopting procedures for the formation and election of a Project Area Committee for the proposed
40th Street Redevelopment Project.
On December 6, 1999, the Mayor and Common Council adopted a resolution fmding that all
applicable procedures were followed in the election of the Project Area Committee.
Recommended Motion(s) Continued:
(Community Development Commission)
MOTION C: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING DRAFT RULES
GOVERNING PARTICIPATION AND PREFERENCES BY PROPERTY
OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS
IN THE 40TH STREET REDEVELOPMENT PROJECT, AND DIRECTING
THAT SUCH RULES BE MADE AVAILABLE FOR PUBLIC
INSPECTION, REVIEW AND COMMENT
MOTION D: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING A DRAFT METHOD
OF RELOCATION PURSUANT TO SECTION 33411 OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW FOR THE 40TH
STREET REDEVELOPMENT PROJECT
_~____________________________w_________~____________w____________________w___________________w__w______________w__w______w____~____________
GYO:REW:SMM:lag:99-12-20 40th St Prelim
COMMISSION MEETING AGENDA
Meeting Date: 12120/1999
Agenda Item Number: ~
. .
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
---------------------------------------------------------------------------------------------------------------------
Resolutions Approvinl!: the Preliminarv Report. Draft Redevelopment Plan. Draft Owner
Participation Rules. and Draft Method of Relocation for the
40th Street Redevelopment Proiect Area
BACKGROUND
The Mayor and Common COlUlcil and the Community Development Commission have
previously taken certain actions leading toward the adoption of a redevelopment plan for the
proposed 40th Street Redevelopment Project Area. In this regard, the attached documents have
been prepared and are submitted for your review and approval.
Preliminarv Report
The Preliminary Report has been prepared in accordance with the prescribed requirements of the
Califomia CommlUlity Redevelopment Law (CRL), and includes the following sections: (1) the
reasons for the selection of the Project Area; (2) a description of the physical and economic
conditions which exist in the proposed Project Area; (3) a determination as to whether the
Project Area is predominantly urbanized; (4) a preliminary assessment of the proposed method
of financing the redevelopment of the Project Area, including an assessment of the economic
feasibility of the project and the reasons for the provision of tax increment; and (5) a description
of specific projects proposed by the Commission and how the projects pursued by the
Commission will alleviate physical and economic blighting conditions in the Project Area.
The purpose of the Preliminary Report is to provide information to taxing agencies as to why the
Commission proposes to adopt the Redevelopment Plan for the Project Area, thus, giving the
taxing agencies the opportunity to review the proposed project, raise questions, and make
comments, if desired. Upon adoption of the attached Resolution, the Preliminary Report will be
transmitted to each affected taxing agency.
Redevelopment Plan
The Redevelopment Plan is based on the Preliminary Plan that was approved by the Commission
on September 20, 1999. The Redevelopment Plan is essentially a legal document, rather than a
"land use plan", that sets forth the Commission's goals, powers, duties, and obligations to
implement the redevelopment program within the Project Area. This is IUlderscored by the
language in paragraph two on page one, which describes the Redevelopment Plan as presenting a
process and framework within which development plans will be presented, priorities for projects
will be established, and solutions will be proposed, and by which tools are provided to the
Commission to fashion, develop, and proceed with such plans, projects and solutions.
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GVO:REW:SMM:lag:99-l2-20 40th St Prelim
COMMISSION MEETING AGENDA
Meeting Date: 12120/1999
Agenda Item Nnmber: R..3'L-
. .
Economic Development Agency Staff Report
40th Street Preliminary Report
November 30,1999
Page Number -2-
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The Redevelopment Plan provides general guidelines which allow the Commission to: (I) fund
property rehabilitation programs; (2) provide affordable housing opportunities in conjunction
with the City's Housing Element; (3) construct public facility and infrastructure improvements;
(4) acquire property for sale or lease within the Project Area; (5) collect tax increment revenue to
fund rehabilitation programs, public improvements, and other Commission activities; and (6) sell
bonds to fund, in whole or in part, rehabilitation programs, public improvements, and other
Commission activities. The Redevelopment Plan will remain in effect for 30 years and the
Commission will have the ability to collect tax increment revenues for 15 additional years after
that time, for a total of 45 years, provided that debt service payments on outstanding bonds are
required after the 30-year term of the Redevelopment Plan has expired.
Owner ParticiDation Rules
The approval of the Draft Rules Governing Participation and Reentry Preferences for Property
Owners, Operators of Businesses, and Business Tenants ("Owner Participation Rules") is a
requirement of the CRL which states, in part, that within a reasonable time before the approval of
a redevelopment plan, the Commission shall make available for public inspection rules to
implement owner participation in connection with the Plan. The CRL also requires that the
Commission adopt rules to extend reasonable preferences to persons engaged in business in the
40th Street Redevelopment Project Area to reenter within the Project Area, and these rules are
also to be made available for public inspection prior to their adoption. Although not required by
the CRL, it is reasonable to include the business preference rules in the same set of rules
addressing owner participation.
The Draft Owner Participation Rules provide guidelines for the participation of property owners,
operators of business, and business tenants in the Project Area. In the event the Commission
wishes to rehabilitate, redevelop or develop a property in the Project Area, or if a property
owner, business operator, or business tenant wishes to participate in the redevelopment process,
the Draft Owner Participation Rules outline the procedures to be followed to ensure that both the
rights of the participant in the redevelopment process are preserved and the goals stated in the
Redevelopment Plan are achieved.
Method of Relocation
Section 33411 of the CRL requires that the Commission prepare a feasible plan for the relocation
offamilies or persons to be temporarily or permanently displaced from housing facilities in the
Project Area, and for nonprofit local community institutions to be temporarily or permanently
displaced from facilities actually used for institutional purposes in the Project Area. Once the
Draft General Relocation Rules is approved, it will be available for public review.
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GVO:REW:SMM:lag:99-12-20 40th St Prelim
COMMISSION MEETING AGENDA
Meeting Date: 12120/1999
Agenda Item Number: R3f-
. .
Economic Development Agency Staff Report
40th Street Preliminary Report
November 30, 1999
Page Number -3-
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FISCAL IMPACT:
None.
RECOMMENDED ACTION:
Staff recommends that the Community Development Commission adopt the attached Resolutions
approving the Preliminary Report, Draft Redevelopment Plan, Draft Rules Governing
Participation and Reentry Preferences for Property Owners, Operators of Businesses, and
Business Tenants, and Draft Method of Relocation for the 40ili Street Redevelopment Project.
Subsequent to public comment and review by the affected taxing agencies, these documents will
be included as part of the Commission's Report to City Council (a document which will be
presented at the joint public hearing for the proposed 40th Street Redevelopment Project) for final
approval.
. Winkler, Director
ent Department
GVO:REW:SMM:lag:99-12-20 40th St Prelim
COMMISSION MEETING AGENDA
Meeting Date: 12120/1999
Agenda Item Number: ~
02
3
014
15
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RESOLUTION NO. ~ (Q) ~W
4
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE
PRELIMINARY REPORT FOR THE PROPOSED 40TII STREET
REDEVELOPMENT PROJECT AND DIRECTING THE TRANSMITTAL
OF THE PRELIMINARY REPORT TO THE AFFECTED TAXING
AGENCIES
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WHEREAS, pursuant to Section 33328 of the California Community Redevelopmen
8
Law ("CRL"), the Community Development Commission ("Commission") of the City of S
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Bernardino shall consult with each taxing entity which levees taxes, or for which taxes
10 th
levied, on property in the 40 Street Redevelopment Project Area with respect to
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Redevelopment Plan and the allocation of taxes pursuant to Section 33670 of the CRL; and
WHEREAS, pursuant to Section 33344.5 of the CRL, the Commission has prepared th
Preliminary Report on the proposed Redevelopment Plan for the 40th Street Redevelopmen
12
13
Project ("Preliminary Report") for transmittal to the affected taxing agencies for consultatio
purposes.
16
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF TH
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CITY OF SAN BERNARDINO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
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Section I.
The Preliminary Report for the proposed 40th Street Redevelopmen
19
Project, a copy of which is attached hereto as Attachment A, is ordered, received, approved an
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filed.
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Section 2.
The Executive Director is authorized and directed to transmit the
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Preliminary Report to the affected taxing agencies in accordance with the provisions of the CRL.
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Section 3.
The Executive Director and Commission staff are authorized and directe
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to continue consultations with the affected taxing agencies with respect to the
25
Redevelopment Plan and the allocation of taxes pursuant to Section 33670 of the CRL.
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RESOLUTION OF THE COMMUNITY DEVEWPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE PRELIMINARY
REPORT FOR THE PROPOSED 40TH STREET REDEVELOPMENT
PROJECT AND DIRECTING THE TRANSMITTAL OF THE
PRELIMINARY REPORT TO THE AFFECTED TAXING AGENCIES
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a
meetin
6 thereof, held on the day of
7 COMMISSION MRMRER..<;: AYES
8 ESTRADA
9 LIEN
10 McGINNIS
11 SCHNETZ
12 SUAREZ
13 ANDERSON
14 MILLER
0 IS
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NAYS
, 1999, by the following vote, to wit
ABSTAIN ABSENT
Secretary
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By:
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The foregoing Resolution is hereby approved this
day of
,1999.
JUDITH VALLES, Chairperson
Community Development Commission
of the City of San Bernardino
-legal content:
IL'
-2-
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PRELIMINARY REPORT
FOR THE REDEVELOPMENT PLAN
FOR THE
40TH STREET PROJECT AREA
NOVEMBER, 1999
PREPARED FOR:
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COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
201 NORTH E STREET, SUITE 301
SAN BERNARDINO, CA 92401.1507
(909) 384-5081
PREPARED BY:
ROSENOW SPEVACEK GROUP, INC.
540 NORTH GOLDEN CIRCLE, SUITE 305
SANTA ANA, CAUFORNIA 92705
(714) 541-4585
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TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................1
SECTION A............................................................................................................................... A-I
SECTION B ................................................................................................................................B-I
BLIGHTING CONDITIONS ..........................................................................................B-I
PHYSICAL BLIGHT ......................................................................................................B-I
ECONOMIC BLIGHT.....................................................................................................B-2
PROPERTIES INCLUDED FOR REDEVELOPMENT PURPOSES ...........................B-3
STUDY APPROACH AND METHODOLOGY............................................................B_3
PROJECT AREA BOUNDARIES ..................................................................................B-5
CHARACTERISTICS OF THE PROJECT AREA ........................................................B-5
PHYSICAL BLIGHT ......................................................................................................B-5
Physical Conditions that Cause Blight.................................................................B_5
Buildings in Which it is Unsafe or Unhealthy for Persons to Live .........B-7
Deterioration and Dilapidation ....................................................B-7
LotslBuildings Suffering from Defective Design or Defective
Physical Construction ..................................................................B-9
Faulty or Inadequate Utilities.....................................................B_ I I
Serious Code Violations ............................................................B-12
Factors that Prevent or Substantially Hinder the Economically
Viable Use or Compatibility of Buildings or Lots.................................B-13
Substandard Design ...................................................................B-13
Lack of Parking..........................................................................B-15
Incompatible Adjacent Uses ..................................................................B-16
Subdivided Lots ofIrregular Form and Shape and Inadequate Size for
Proper Usefulness and Development that are in Multiple Ownership...B-17
ECONOMIC CONDITIONS THAT CAUSE BLIGHT ...............................................B-18
Depreciated or Stagnant Property Values or Impaired Investments ......B-18
Depreciated or Stagnant Property Values ........................................B-18
Impaired Investments .......................................................................B-19
Abnormally Low Lease Rates................................................................B_20
High Business Vacancies .......................................................................B-21
A High Crime Rate That Constitutes A Serious Threat To The Public
Safety and Welfare.................................................................................B-23
Gangs and Graffiti............................................................................B-24
SUMMARY ...................................................................................................................B-25
o SECTION C................................................................................................................................C-l
SECTION D............................................................................................................................... D-l
GENERAL FINANCING METHODS AVAILABLE TO THE AGENCy.................. D-l
Financial Assistance from the City, State, and/or Federal Govemment............. D-I
Property Tax Increment Revenue ....................................................................... D-2
Bonded Debt ....................................................................................................... D-2
Lease or Sale of Agency-Owned Property.......................................................... D-3
Participation in Development ............................................................................. D-3
Other Available Sources ..................................................................................... D-3
PROPOSED REDEVELOPMENT ACTIVITIES AND PROJECT RELATED
COSTS ............................................................................................................................ D-3
ESTIMATED TAX INCREMENT REVENUE AND BONDING CAPACITY........... D-4
ASSESSMENT OF THE ECONOMIC FEASIBILITY OF THE PROJECT................ D-7
REASONS FOR THE PROVISION OF INCREMENT REVENUE ............................ D-9
SECTION E................................................................................................................................E-l
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ECONOMIC DEVELOPMENT PROGRAMS...............................................................E_I
PUBLIC INFRASTRUCTURE IMPROVEMENTS ......................................................E-2
LOW AND MODERA TE INCOME HOUSING PROGRAM .......................................E-2
ECONOMIC DEVELOPMENT PROJECTS..................................................................E-4
PUBLIC IMPROVEMENTS PROGRAM......................................................................E_5
LOW AND MODERATE HOUSING PROGRAMS......................................................E_7
APPENDIX A Information Sources
APPENDIX B Project Area Photographs
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INTRODUCTION
The City of San Bernardino ("City") and the San Bernardino Community Development
Commission ("Commission") are considering expanding their redevelopment efforts by
incorporating certain commercial and residential areas into a project area. The fum of Rosenow
Spevacek Group, Inc. ("RSG") has been retained by the Economic Development Agency of the
City of San Bernardino ("Agency") to conduct the necessary analyses needed to adopt a
redevelopment plan for the proposed area. RSG recently completed a Feasibility Study to
identify areas in the City which meet the requirements of a redevelopment project area, as
specified in the California Redevelopment Law, Health and Safety Code Section 33000, et seQ.,
("CRL").
The areas identified by RSG for inclusion in a potential redevelopment project area are shown in
Exhibit I. Based on the conditions of physical and economic blight documented in the
Feasibility Study, RSG determined that there is sufficient evidence to move forward with the
adoption of a redevelopment project area (Exhibit 1).
The area under consideration, the 40th Street Project Area ("Project Area"), includes
approximately 83 acres (excluding public rights of way) encompassing two non-contiguous
regions (Subarea 1 and 2). The larger area (Subarea 1) is generally bordered by 44th Street to the
north, Sepulveda and Waterman Avenues to the east, Ralston Avenue and Sonora Drive to the
south, and Electric and Mountain View Avenues to the west. The other area (Subarea 2) is
multi-unit residential and vacant land, just to the east of Sierra Way on 49th Street. Commercial
areas of the ProjeCt Area are located on 40th Street, as well as along certain portions of Sierra
Way. Commercial uses in this portion of the Project Area consist ofa mix of marginal retail and
other commercial uses serving the local neighborhood. The residential areas are primarily north
of 40th Street, east of Sierra Way, and south of 40th Street, west of Sierra Way..
The Commission's goal is to improve the physical condition of the Project Area, enhance the
economic base and allow the City to create and retain jobs within the area. Establishing these
areas as a redevelopment project will enable the Commission to utilize redevelopment tools to
remove blighting conditions, revitalize the local economy, correct infrastructure deficiencies,
enhance employment opportunities, and provide a safe environment.
In order to adopt the proposed 40th Street Project Area Redevelopment Plan ("Redevelopment
Plan"), the Commission must comply with the procedures for adoption of a redevelopment plan
as set forth in the CRL. Proceedings for the proposed adoption of the Redevelopment Plan for
the Project Area were initiated with the adoption of Resolution No. _ on September 7, 1999,
by the Planning Commission of the City of San Bernardino, approving and adopting the
Preliminary Plan for the Redevelopment Project Area ("Preliminary Plan"). The objectives of
the Redevelopment Plan are to:
· Include approximately 83 acres of territory in the 40th Street Project Area;
Rose"ow Spt!IItlCt!k GroIlP, I"e.
No_bu, 1999
1
Co"""""ity Devdop1llt!llt C01ll1fllss1o"
of tile City of So BemlllYlillo
Draft Prdimilltlry Rt!pOft
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· Provide for the use of redevelopment tools to assist in the revitalization of the 40th
Street Shopping Center;
· Alleviate blighting conditions which constitute physical and economic liabilities, and
require redevelopment in the interest of the health, safety, and general welfare of the
people of the community; and
· Promote economic development within the Project Area.
The CRL provides the Commission with the authority to undertake revitalization efforts in
blighted areas within the City. As defined by CRL, redevelopment includes the rehabilitation,
reconstruction, and improvement of existing structures; the provision of public improvements;
and the replanning or redesign of blighted properties within a project area. Sections 33450-
33458 of the Redevelopment Law permit the Commission to recommend adoption of the
Redevelopment Plan subject to: I) the preparation of documents by the Commission to
substantiate the need for the Plan; 2) the convening of a joint public hearing of the City Council
and the Commission on the proposed Plan; and, 3) consideration and approval of an adopting
ordinance by the City Council.
This Preliminary Report, prepared pursuant to Section 33344.5 of the CRL, provides information
to assist affected taxing agencies in assessing the potential impacts of the project. The "affected
taxing agencies" are governmental taxing agencies which levied a property tax on all or any
portion of the property located within the boundaries of the project within the last fiscal year.
With the approval of this Preliminary Report, along with a Draft Environmental Impact Report
and draft Redevelopment Plan, the Commission will invite consultations with the affected taxing
entities and the community as to the scope and nature of the proposed Redevelopment Plan.
Following these consultations, the Commission will incorporate comments into the Report to
Council. The Report to Council, Final Environmental Impact Report, and Final Plan will be
considered by the Commission and City Council at a joint public hearing tentatively scheduled
for May, 2000. The Method of Relocation and Rules Governing Participation and Reentry
Preferences for Property Owners, Operators of Businesses and Business Tenants are both
scheduled to be approved prior to the joint public hearing.
This Preliminary Report has been divided into the following sections:
SECTION A
SECTION B
The Reasons for the Selection of the Project Area
A Description of the Physical and Economic Conditions Existing in the
Project Area
SECTION C
A Determination as to whether the Project Area is Predominantly
Urbanized
SECTION D
A Preliminary Assessment of the Proposed Method of Financing the
Redevelopment of the Project Area and the Reasons for the Provision of
Tax Increment
Rosenow Spntluk Group,lnc.
November, 1999
2
Community Development Collfllfbslon
o/the City 0/ So Bemtudlno
Drtlft Prellminary Report
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SECTION E
A Description of How the Amendment and Proposed Projects to be
Pursued by the Commission, Will Improve or Alleviate Physical and
Economic Conditions in the Project Area
Rosellow Spntlcek GrollP, Inc.
NoveJrlbu, 1999
3
Community Devdop_t ConrmJsslDn
oftlte City of SflII Bemwino
Draft Pre1/mintl'Y Report
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SECTION A
Reasons for Selection of the Project Area
The Proposed Project Area as depicted in Exhibit 1 is comprised of two noncontiguous areas
located in the northeastern quadrant of the City. Generally, the area includes: 1) the commercial
corridors in the vicinity of the intersection of 40th Street and Sierra Way, and 2) high density
apartments and a small vacant area located on 49th Street east of Sierra Way. The majority of the
land uses are residential and commercial. The neighborhood commercial areas generally along
40th Street and Sierra Way can be characterized as retail, rnarginal retail, and food service. The
buildings in these commercial areas exhibit signs of obsolescence, their small size no longer
meets current market trends, they have limited egress/ingress, entrances and parking areas are
inconveniently located, architectural design and signage is outdated, and access for loading is
deficient.
The 40th Street Shopping Center ("Center") is one of the major developments in the area. The
Shopping Center serves the local residents as well as vacationers on their way to the mountain
resorts just north of the City. The City of San Bernardino has made numerous attempts to
alleviate the blighting conditions at this Shopping Center. The Center is run down, has design
and access problems, and currently has numerous vacancies. It is not serving the surrounding
residents nor maximizing its potential to attract business from passing tourists. The Center
access is difficult because of narrow driveways and its street presence from the east is severely
compromised because of a two-story office complex and a gas station that front Waterman
Avenue. These structures make it difficult for passers-by to see that a retail center is located to
the rear of these structures.
While the Center will be a focal point of the redevelopment effort, the surrounding area has also
experienced significant business attrition during the past decade. Several large employers are no
longer operating in the greater San Bernardino area, including Santa Fe Railroad, Kaiser Steel,
and Norton Air Force Base. This has resulted in the loss of thousands of jobs. The loss of these
employers, combined with the already generally deteriorating conditions in the proposed Project
Area, has further compromised the City's ability to attract new businesses to the Area.
Efforts to revitalize the area will entail assisting businesses to upgrade their facilities, as many of
the smaller businesses along 40th Street and Sierra Way appear to be obsolete. Many of these
businesses are comprised of stand-alone buildings, frequently built in the 1950's and 60's, that
have outlived their economic usefulness. These buildings are too small, deteriorated, or
dilapidated and lack adequate ingress/egress to compete in the current retail market. They are
predominately occupied by low-end discount stores, auto repair facilities, bars or independent
fast-food restaurants, leaving these prime commercial areas underutilized. Upgrading these areas
will allow for additional retail stores and services, and provide expanded employment
opportunities for area residents.
Rosenow SpntlCek Group, Inc.
November, 1999
A-I
COlfUflllnity Development COIIIIIt/sslDn
of the City of SIUI Bemardillo
Draft Prellmillaty Repon
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Including the declining residential neighborhoods surrounding the commercial areas will enable
the Commission to address blighting conditions adversely affecting this residential area. These
areas will also benefit from redevelopment tools and by the 20% tax increment monies required
to be set aside by law to improve and increase housing opportunities for low to moderate income
persons or households. Housing funds will be available for development, revitalization, and
first-time homeownership programs.
As described above and detailed in Section B, the Project Area suffers from a significant number
of physical and economic blighting conditions. Private enterprise acting alone and governmental
action, without redevelopment, has not been able to alleviate these blighting conditions. By
adopting the proposed 40th Street Project Area, the Commission will be able to implement
redevelopment activities by using available resources to remove blighting conditions, revitalize
the local economy, correct infrastructure deficiencies, save and create jobs, and provide a safe
environment.
Eliminating and preventing the spread of blight, maintaining existing businesses, as well as
attracting new businesses and encouraging new development are the Commission's primary
reasons for proposing the adoption of a redevelopment plan for the Project Area. In general, the
goals and objectives of the redevelopment program are as follows:
I. Implement the policies, goals, objectives and strategies as presented in the
General Plan for the City of San Bernardino.
2. Eliminate and prevent the spread of conditions of blight in order to create a
more favorable environment for commercial, office, and residential
development. Blight conditions include, but are not limited to: underutilized
properties and deteriorating buildings, incompatible and uneconomic land
uses, deficient infrastructure and facilities, obsolete structures, and other
economic deficiencies.
3. Expand the commercial base of the Project Area.
4. Promote the economic development and community development of the
Project Area by providing an attractive, well-serviced, well-protected
environment for all residents.
5. Improve public facilities and public infrastructure, including, but not limited
to, street, utility, sewer and drainage and improvements.
6. Promote local job opportunities.
7. Encourage the cooperation and participation of residents, businesses,
business persons, public agencies, and community organizations in the
redevelopment/revitalization of the Project Area.
Rosenow Spevauk Group, Ine.
November, 1999
A-2
Community D~Iop_nt Collllfflsslon
01 the City 01 Slut BBlfllrdlnO
Drll/l PrdInr/nIUJ' Report
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8. Implement design and use standards to assure high aesthetic and
environmental quality, and provide unity and integrity to developments
within the Project Area
9. Address parcels of property that are of irregular form and shape, are
inadequately sized for proper usefulness and development, and/or are held in
multiple ownership.
10. Remove impediments to land disposition and development through the
assembly of property into reasonably sized and shaped parcels served by
improved infrastructure.
11. Recycle and/or develop underutilized parcels to accommodate higher and
better economic uses while enhancing the City's financial resources.
12. Promote the rehabilitation of existing housing stock.
13. Increase, improve, and preserve the supply of housing affordable to very
low, low and moderate income households.
In the following sections, the objectives of the Plan are discussed in greater detail. Section B
provides a description of the physical and economic blighting conditions existing in the Project
Area A determination that the Project Area is predominantly urbanized is presented in Section
C. The economic feasibility of the project adoption is analyzed in Section D. Section E of this
Preliminary Report delineates the proposed projects to be undertaken through the
Redevelopment Plan, and identifies how the projects will mitigate blight in the Project Area.
Rosenow Spevtlcek Group, lne.
November, 1999
A-3
Contlnllnlty Dnelopmmt CotIfIIIission
oftlte City of Stili Bemtudlno
Draft Preliminary Report
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SECTION B
A Description of the Physical and Economic
Conditions. Existing in the Project Area
Section B of this report details the nature of the Project Area by providing a description of the
physical and economic blighting conditions found within its boundaries.
BLIGHTING CONDITIONS
The CRL sets forth specific parameters that define blight. According to Section 33030 of the
CRL, a blighted area contains both of the following:
I. 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, which cannot reasonably be expected to be reversed or alleviated by
private enterprise or governmental action, or both, without redevelopment" (CRL,
Section 33030(b)(1)).
2.
An area that is characterized by either, physical blight and economic blight or the
"existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development that are in multiple ownership" (CRL Sections
33030(b)(2) and 3303 I (a)(4)).
PHYSICAL BLIGHT
Section 3303 I (a) of the CRL describes physical conditions that cause blight as follows:
1. Lotslbuildings in which it is unsafe or unhealthy for persons to live or work;
examples of such conditions include:
a. Dilapidated and deteriorated buildings
b. Lotslbuildings suffering from defective design or physical construction
c. Lotslbuildings suffering from faulty or inadequate utilities
d. Serious Building Code violations
2. Factors that prevent or substantially hinder the economically viable use or
capacity of buildings or lots; examples of these conditions include:
a. Lotslbuildings suffering from substandard design
b. Lotslbuildings of inadequate size given present standards and market
conditions
Rosl!Itow Spevauk Gro"p, 11Ie.
November, 1999
B-1
C01ll1llll1l1ty Devdopmmt COIIIIIt/ssioll
ofth~ City of SIUIIJ__brO
Draft Prdlmbrlll'y RqIOrt
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c. Lack of available parking
3.
Adjacent or nearby uses that are incompatible with each other and which prevent
the economic development of those parcels or other portions of redevelopment
project areas.
4. The existence of subdivided lots of irregular form and shape, inadequate size for
proper usefulness and development, and that are in multiple ownership.
ECONOMIC BLIGHT
Section 33031(b) of the CRL describes the following economic conditions that cause blight:
I. Depreciated or stagnant property values or impaired investments. This condition
includes the presence of hazardous waste.
2. Stagnant or declining market conditions; examples of this include:
a. An abnormally high number of business vacancies
b. Abnormally low lease rates
c. High turnover rates
d. Abandoned buildings
e. Excessive vacant lots within an area developed for urban uses and served by
utilities
3. A lack of necessary commercial facilities such as those normally found in
neighborhoods including grocery stores, drug stores, and banks and other lending
institutions.
4. Residential overcrowding or an excess of bars, liquor stores, or other businesses
that cater exclusively to adults have led to problems of public safety and welfare.
5. A high crime rate that constitutes a serious threat to the public safety and welfare.
Provided that other conditions of physical and economic blight are present, a blighted area may
also be one that is characterized by the existence of inadequate public improvements, parking
facilities, and utilities.
Rosenow SpntlceJc Grollp. f"e.
Novt!mber. f999
B-2
Commu,,1ty DndDpment CDIIIIIfluio"
olthe City 01 So BemtlrdbJo
Dnift Prdlmbr"" Report
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The characteristics of both physical and economic blight, as defined above, are present
throughout the Project Area. The characteristics of physical blight include deteriorated and
dilapidated structures; lotslbuildings suffering from defective design, substandard design, lots of
inadequate size and under multiple ownership, and incompatible uses. The characteristics of
economic blight in the Project Area include and abnormally high number business vacancies,
low lease rates, depreciated property values, impaired investments, including declining retail
sales tax revenues and crime, all of which are indicative of declining market conditions. These
blighting characteristics are detrimental to surrounding uses and the community.
PROPERTIES INCLUDED FOR REDEVELOPMENT PURPOSES
Conditions of blight predominate throughout and injuriously affect the entire Project Area. If
and to the extent that properties are not blighted, their inclusion in the Project Area is necessary
and appropriate for one or more of the following reasons and redevelopment purposes: (I) in
order to effectively plan and carry out the Project; (2) because such properties are impacted by
the conditions existing on adjacent properties, and correction of such conditions may require the
imposition of design, development or use requirements on the standard properties in the event
they are rehabilitated or redeveloped by their owners; (3) to impose uniform requirements over a
geographically defmed and identified area of the City; (4) for the provision oflow and moderate
income housing; and (5) because such properties are part of a blighted area.
STUDY APPROACH AND METHODOLOGY
Several data sources were utilized to quantify existing conditions in the Project Area. An
important data source for evaluating the existence and prevalence of conditions that characterize
blight in the Project Area was the field survey conducted by Rosenow Spevacek Group, Inc.
("RSG''), consultants to the Commission, in May 1999 and a follow-up survey in September
1999. The survey documented the existing physical and economic conditions of each parcel in
the Project Area, as observed from the public right-of-way. Both physical and economic
indicators were observed during the field survey, including deterioration and dilapidation,
inadequate utilities, defective design, substandard design and incompatible uses. The results of
the field survey, as well as other data collected, are presented below within the same categories
as defined in the CRL. Also, an explanation of the method used for assessing these conditions is
provided by category.
The survey and supplementary research included analyzing each parcel to determine conditions
of blight present. The criteria established for determining the presence of the majority of the
blighting conditions in the Project Area are as follows:
Dilapidation and Deterioration: A structure was determined to be dilapidated or
deteriorated if structures were observed to be suffering from deteriorated roofs or eaves;
peeling paint; damaged exterior building material; exposed wiring or plumbing; and/or if
the buildings were constructed with substandard building materials. In addition, these
structures were deemed deteriorated and/or dilapidated if the condition or the lack of
maintenance of a building resulted in the building being unfit or unsafe for occupancy.
Rosenow Spevtlcek Group, Inc.
November, 1999
B-3
COlffltfllnity Development Commission
of the City of San Bemardlno
DI'fl/l Preliminary Report
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Defective Desi2Il or Defective Physical Construction: A parcel and/or building suffers
from defective design when setbacks do not comply with current requirements; there is a
lack of parking; ingress and egress are difficult for vehicular traffic; structures lack
sufficient loading area; buildings are being used for purposes for which they were not
originally constructed or intended; or when a building or site has been poorly laid out. A
parcel suffers from defective physical construction when structures appear to be built
from materials that are outdated or substandard, such as corrugated metal, and would not
be permitted if the structure were built today; have cracked foundations; are leaning; lack
windows; or have a variety of other physical inadequacies.
Substandard Desi2Il: A building suffers from substandard design when building sizes,
setbacks, and design themes are inconsistent with surrounding buildings. A parcel
exhibits conditions of substandard design when it is not consistent in size with
surrounding parcels or is inadequate for its existing use.
Lack of Parking: Parcels lacking off-street parking and/or instances in which vehicles are
either parked on sidewalks or are double parked on parcels.
Incompatible Adiacent or Nearby Uses: Properties with incompatible adjacent or nearby
uses result from predominate land uses which negatively impact other land uses in the
area. For example, the presence of residential units in a primarily industrial area which
lack adequate buffers typically results in incompatible adjacent or nearby uses.
Irregularly Formed, Shaped, Inadequately Sized Parcels or Lots in Multiple Ownership:
Parcels were determined to be irregularly formed, shaped, or inadequately sized based on
a review of Los Angeles County assessor parcel maps and the City's current zoning code.
In addition, the ownership of these parcels was analyzed to determine multiple
ownership.
The survey noted situations in which at least one building on a parcel exhibited a blighting
condition. Since many of the parcels in the Project Area have more than one building on the site,
the survey illustrates conditions of at least one building on the parcel. Since some buildings may
be in somewhat better condition, it does not suggest that all buildings on any single parcel
exhibit all of the same blighting characteristics or are in the same condition. In addition, there
are certain types of blighting conditions that cannot be directly linked to a parcel. This occurs
when blighted parcels are interspersed among non-blighted properties. Due to their geographical
location, the non-blighted parcels are by necessity included in the Project Area. Inclusion of
these parcels, which are not detrimental to the public health, safety, or welfare, is necessary for
the effective redevelopment of the Project Area; they are not being specifically included for the
purpose of obtaining the allocation of tax increment revenues.
Rosenow Spnauk Group, /nc.
Noventber, /999
B-4
Cotnnlllnity Development ColMlissiDn
oftIte City of San Bern.rdino
Dmft Prelimin.'Y Report
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PROJECT AREA BOUNDARIES
The Project Area is located in the northeast section of the 60 square mile City of San Bernardino.
It is generally bounded by 44th Street to the north, Ralston Avenue, and Sonora Drive to the
south, Electric and Mountain View Avenues to the west, and Sepulveda and Waterman Avenues
to the east. In addition, a section of high-density apartments and some vacant parcels north of
this area are included in the Project Area. This additional section is generally bounded by
Waterman Avenue to the east, Sierra Way to the west and northwest, and parcels fronting 49th
Street on the south as depicted in Exhibit I.
CHARACTEWSTICS OF THE PROJECT AREA
The Project Area is comprised of approximately 83 acres. The majority of the land uses are
residential and commercial. The commercial areas generally along 40th Street and Sierra Way
can be characterized as retail, marginal retail, and food service. The buildings in these
commercial areas exhibit signs of obsolescence, their small size no longer meets current market
trends, they have limited egress/ingress, entrances and parking areas are inconveniently located,
architectural design and signage is outdated, and access for loading is deficient.
The residential parcels exhibit varying degrees of maintenance with some of the units in need of
extensive repairs. The units have peeling paint, damaged exterior building materials,
deteriorated roofs and eaves, exposed utilities, and in some instances faulty additions. The
residential areas suffer from excessive lot coverage, inadequate parking and access, outdoor
storage, and deteriorated fencing, landscaping, and driveways.
PHYSICAL BLIGHT
A. PHYSICAL CONDITIONS THAT CAUSE BLIGHT
The CRL describes physical conditions that cause blight in Section 33031(a), as shown
above. These physical conditions are assessed in terms of the health and safety of
persons and the economic viability and development of the area. The physical blighting
conditions found in the Project Area include deterioration and dilapidation of all types of
buildings, buildings defective in design, buildings which do not meet code requirements,
buildings with faulty or inadequate utilities, buildings of substandard design, properties
with parking and access problems, and parcels of irregular form and shape, and
inadequate size which are under multiple ownership. Conditions of deterioration and
dilapidation, inadequate parcel size and shape for development, as well as the conditions
listed above, discourage private sector investment, and further contribute to the blighting
conditions of the Project Area. Seventy-three percent of all parcels within the Project
Area suffer from one or more conditions of physical blight (Table B-1).
Rosenow Spevacek Grollp, Inc.
November, 1999
8-5
COmmllnlty Deve10pnwtt Commission
of the City of Stili Bemtudlno
Draft Preliminary Report
TABLE B-1
0 Adoption oftbe 40tb Street Redevelopment Project Area
Summary ofBligbting Conditions
No. of No. of % of Parcels with
Physical Blighting Parcels/Properties with Parce1sIProperties Blightiog Cooditions
Conditio.. Blightiog Cooditioos in Project Amo in Project Amo
Buildings UnsafeiUnhea1thy to Live or Work
Serious Building Code Violations 18 234 7.69"4
Dilapidation and Deterioration
Deferred Maintenance 109 234 46.58%
Moderate Rehabilitation 24 234 10.26%
Extensive Rehabilitation 11 234 4.70%
Subtotal 144 234 61.54%
Defective DesignlPbysiea1 Construction 58 234 24.79%
Faulty or Inadequate Utilities 48 234 20.51%
Factors that Prevent or Hiod.. the Economically
Viable Use or Capacity ofBldgs. or Lots
Substandard Design (I) 76 234 32.48%
Lack ofParldng 30 234 12.82%
Incompatible Adjacent Uses 10 234 4.27%
Lots oflrregular Shape and Inadequate Size
and Development in Multiple Ownership 25 234 10.68%
0 Tollll Pbysical BI.hting eoaditiolo. (1) 171 234 73.08%
Econnmic Bllchting Cnndltln..
Declining Property Values/Impaired Investments (3) 32 234 13.68%
Business Vacancies (4) 16 69 23.19%
Abandoned Buildings 10 234 4.27%
Tollll Eennomie Bllcbtin. Conditiolo. (1) 50 234 21.37%
(1) Incl.des o.tdDO' Starqe or Prodltdioa.
(2) This Dumber repl'tlellb tile ".ber .'pircell wttIIat least OH coltdltioa .(ph"'. or economic bliCIlL
(3) Com,.rison ofPropert)' VallleS fro.. .",." Ie 1998-99.
(4) Tota.. i.clade hrtell Deslpated for Vie by BuiHst I.ItabUsbmeau willi at last one vaaat unit.
Source: Blight Snrvey Conducted September 1999
o
Within the Project Area, the commercial centers along 40th Street and Sierra Way
provide important commercial uses and services to the surrounding residents. The poor
physical conditions create a burden on the immediate community by causing a lack of
necessary retail stores and services needed or desired by area residents. The poor
physical and economic conditions of the commercial properties also impact surrounding
neighborhoods, as residents have no incentive in some cases to upgrade and/or maintain
their properties. The magnitude of these building and site problems has seriously
Rasenaw Spnacek G,aup, f"e.
Navmt/Je',f999
B-6
Ca"""",,1ty ~Iopmt!"t CfJllflllJsslo"
afthe City af Sa" BemardJna
Draft Preliminary RtlptJrt
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impacted the ability of the City to remediate poor conditions and facilitate private
reinvestment in the area. In many cases, the high costs involved in upgrading and
rehabilitating existing structures and infrastructure have caused buildings to deteriorate to
a state of disrepair that causes health and safety issues for occupants, and have caused
buildings to .remain vacant for two years or more. Removing blighting conditions will
require a concerted effort by both the community and the private sector. Neither entity
acting alone possesses the ability or the resources to remediate the deficiencies of the
Project Area.
The following discussion provides a description of physical blighting conditions found to
be pervasive within the Project Area. The photographs contained in Appendix I provide
examples of conditions within the Project Area described below.
1. Buildings in which it is Unsafe or Unhealthy for Persons to Live or Work
(a)
Deterioration and Dilapidation
Deterioration and dilapidation is one indicator of buildings which are
unsafe or unhealthy for persons to live or work in, as identified under
Section 33031(a)(l) of the CRL. Buildings, which are in poor or
substandard condition, jeopardize the health and safety of the occupants
. and the community as a whole. The presence and persistence of
deteriorated and dilapidated building conditions reflects a lack of
investment necessary to assure the safety of persons who live or work in
the area.
In order to assess the level of building deterioration occurring in the
Project Area, a parcel-by-parcel survey of blighting conditions was
conducted in the Project Area. Buildings in the Project.Area were viewed
and generally categorized based on the condition of the structures in one
of the following categories:
::::) Sound: There are no noticeable deficiencies in the structural
condition of the roof, walls, or foundation. The structure appears
to have adequate plumbing and electrical service and is subject to a
regular program of maintenance. The exterior walls and other
surfaces are well painted and clean, and the windows and doors are
intact.
::::) Deferred Maintenance: The structure has been maintained
adequately enough to eliminate any major structural defects. The
exterior of the building shows signs of deferred maintenance such
as peeling paint, dirty exterior walls and other surfaces, weathered
and worn wood facades, and/or cracked stucco or foundations.
Rosenow Spevtlcek G"",p, Inc.
November, 1999
8-7
Community Development Conrmlsslon
oftlte City of Sfln Bernflrdlno
Dmft Prelimlnflty Report
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Moderate to Extensive Rehabilitation: There are obvious
indications that proper maintenance to the structure is very
infrequent. The building shows signs of structura1 deterioration,
such as rotten or cracked building materials, a sagging roof or
walls, or a crumbling foundation. Patchwork repairs may be
apparent, and paint may be largely peeled or faded. The exterior
walls and other surfaces are very dirty and show signs of neglect.
~ Dilapidated: The building appears structura1ly unsound, and
maintenance is nonexistent. Its fitness for human habitation is
highly questionable, and its state of deterioration and neglect is
such that it is a candidate for demolition.
Deteriorated and dilapidated structures were observed throughout the
Project Area. The windshield survey identified a total of 144 parcels
(about 62% of properties surveyed) with signs of deterioration or
dilapidation. Approximately 109 parcels had one or more signs of
deferred maintenance, 24 parcels were in need of moderate rehabilitation,
and 11 parcels require extensive rehabilitation.
Building conditions observed during the field survey included broken
windows, boarded up abandoned buildings, rotting wood eaves or trim,
occasional sagging roofs, damaged and deteriorated roofing material,
damaged exterior building material, cracked or crumbling foundations,
and substandard exterior electrical wiring and plumbing. The
deterioration in the commercial area includes damaged exterior building
and roofing materials, exposed wiring and plumbing, peeling paint,
occasional broken windows, deteriorated parking lots and obsolete
signage. These conditions are most prevalent in what appears to be the
older commercial area along the northern portion of Sierra Way. Physical
blighting conditions are also concentrated along the businesses west of
Sierra Way on the south side of 40th Street, with many of the buildings
exhibiting conditions similar to those cited above. One of the most
dramatic examples of the deteriorated conditions among commercial areas
is the 40th Street Shopping Center, where the western side is not in use and
has been partially covered with exposed building materials, has boarded
up or broken windows, drainage problems, trash and debris strewn about
the deteriorated parking lot, un-kept landscaping, and outdated signage.
Further, the rear of these buildings show exposed plumbing and electrical
wiring, cracked foundations, peeling paint, and deteriorated building
materials.
On Sierra Way south of 40th Street there is a mixed-use parcel that houses
several rental units and two small businesses. The business structures are
very deteriorated and exhibit signs of obsolescence. The very small
structures have peeling paint, antique signage, and deteriorated exterior
Rosmow Spl!Wlcek Group, Inc.
November, 1999
B-8
Comnfllnity D/!IIt!lopmmt Commission
of the City of San Bt!11tardlno
Draft Preliminary Report
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building materials. One of the structures appears to have an unpermitted
addition abutted to the rear. They share a dirt parking lot with the adjacent
residential units that does not allow for adequate ingress/egress. The
residential units are more dilapidated. The multi-residential units suffer
from deterioration including peeling paint, voids in the stucco, and severe
dry rot in the eaves as well as other exposed wood.
The majority of all structures within the Project Area are residential. The
overall condition of the building stock in the Project Area is reflective of
the older age of the housing. According to the 1990 Census,
approximately 46% of the total housing units in the City were constructed
prior to 1960. Given the age of many of the residential units, routine
minor and major maintenance and repair are required to insure the
structural integrity and safety of residential buildings.
Residential units in the area generally bounded by 40th Street to the north,
Electric Avenue to the west, and Mountain View A venue to the east,
exhibit one of the highest incidences of deterioration in the Project Area.
These "California bungalow" type houses are quite deteriorated, primarily
due to age and lack of maintenance. For example, they have peeling paint,
dry rot, deteriorated roofing, broken windows, voids in the exterior
building materials, and substandard exterior plumbing and electric wiring.
Further, these residential properties have significant outdoor storage, trash,
and other debris accumulating around the properties.
The noncontiguous residential area along 49th Street contains about 8
parcels primarily consisting of abandoned, boarded up buildings, as well
as a large number of units in need of moderate to extensive rehabilitation.
These high density apartments have deteriorated exterior building
materials, peeling paint, broken windows, inoperable vehicles in the
limited parking areas, un-maintained or non-existent landscaping, and
deteriorated fencing and driveways.
Given the age of many of the residential units, routine minor and major
maintenance and repair are required to insure the structural integrity and
safety of residential buildings. In the absence of such repair, deterioration
and dilapidation like that observed in the Project Area can have an
damaging effect on the physical and economic viability of the specific
property, as well as the surrounding area.
(b) LotslBuildiDlZs Suffering from Defective Design or Defective Physical
Construction
Buildings, structures, or their additions that are constructed with materials
that do not meet current design or construction standards may be
considered defective in design. Such buildings can present safety hazards,
Rosenow Spevacek Group, lite.
November,I999
8-9
C011tlltllltlty DeveJopmmt Co1tf1tf/sslon
olthe City 01 SlIn Bemllrdino
Drllft Preliminary Repon
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be functionally inefficient, or facilitate their own deterioration. Defects
may exist from the moment a given building is completed; or, they may
evolve as uses within the building or within the surrounding buildings
change over time. Conditions of defective design or physical construction
can be manifested in a nwnber of ways. One example is where existing
conditions do not meet modem construction standards established to
ensure the health and safety of building occupants. Such defects may not
technically be code violations (although, most older buildings suffer from
many of these also) but rather deficiencies resulting from evolutionary
improvements in building code standards that have occurred since the
building's construction.
The results of the windshield survey indicate that 25% of the parcels in the
Project Area were observed to have one or more conditions of defective
design or defective physical construction. These include inadequate
vehicular access and loading areas, outdoor storage, and substandard
building materials.
Examples of defective design can be seen in some of the auto repair shops
in the Project Area. These businesses seem to have inadequate storage
area for the nwnber of vehicles currently in the repair facility. In addition,
it appears that parts, storage, and repair often take place in the open
parking areas. Thus, these businesses do not appear to have adequate
building or parking lot space for their current business volwne.
Inadequate loading capabilities plague many of the commercial retailers
along 40th Street. One example of this occurred during RSG's land use
survey, when a large semi-truck delivering supplies to a pizza restaurant,
parked in front of a bus stop on 40th Street during delivery. This lack of,
or inadequate loading areas, results in trucks loading and unloading in
parking lots, or the public right-of-way, impeding access to businesses and
restricting traffic flow.
The 40th Street Shopping Center also suffers from inadequate loading
areas. The majority of the complex does not have an adequate loading
area to accommodate a large truck or to allow two vehicles to pass in order
to access other businesses via the narrow access alley.
Towards the north end of the Project Area on the eastside of Sierra Way,
there is a group of businesses that can only be accessed by the alley east of
the street. This provides very poor access, traffic flow and visibility for
these commercial properties, some of which are service oriented.
Furthermore, there are few designated parking spaces for these
establishments.
Rosmo", Spewlc~k Group, /nc.
Novemb~r, /999
8-10
ColfJltlllnity Ihvelop_t CollUll/ssion
of th~ City of SII1J Bm.llmlno
Drllft Pr~/lmInllry Report
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There were two residential units without any side yard set-backs. One of
these units is on Mountain View and the other is on 41" Street. Both of
these units appeared to have unpermitted construction, which did not
provide proper ventilation or light for the structure
There were several residential units, primarily along Mountain View
A venue, with either no driveway or an unpaved driveway and parking
area. Those units without driveways have no off street parking and thus
would not meet current development standards.
The high-density apartments located on Sonora Drive and Ralston
Avenue, south of 40th Street suffer from excessive lot coverage, which
has caused inadequate parking, poor vehicle access to parking, and little or
no open space. These conditions make these developments less attractive
to tenants and would appear to affect the rental income potential for the
units. The units on Ralston Avenue have parking access only from a rear
alley that may increase the potential for crime in the parking areas. These
units, as well as other high-density developments, seem to have only one
off-street parking space per unit, which may be inadequate for most
families and does not meet current City standards.
(c)
F aultv or Inadequate Utilities
Faulty or inadequate utilities, is a condition identified under Section
33031(a)(I) of the CRL, which characterizes buildings that are unsafe or
unhealthy for persons to live or work. Buildings served by electrical or
other utilities that are old, constructed inadequately, modified without
proper permits, or otherwise substandard, are considered faulty or
inadequate. These conditions, which include exposed electrical wiring or
excessive concentration of utilities, were documented during the
windshield survey of blighting conditions within the Project Area. Faulty
or inadequate utilities systems often serve as an indicator of health and
safety issues facing building occupants and the area in general.
The results of the windshield survey indicate that 48 properties, (21 % of
parcels in the Project Area), or one out of every five properties, exhibit
faulty or inadequate utilities, or have current violations concerning utility
systems. This condition was present on residential properties located
along Mountain View Avenue, south of 40th Street, and on some of the
high-density apartment buildings on Sepulveda Avenue between 44th
Street and 42nd Street. The worst example of this condition is single-
family homes where extension cords go through windows to provide
adequate electrical power.
Rosenow Spevtlcek Group, Inc.
November, 1999
8-11
Community Development Collflllission
oftlte City of Stln BemtUdlno
Drtlft Preilmlntlty Report
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Several of the commercial buildings and the office building on the eastern
portion of the 40th Street Shopping Center suffer from exposed wiring.
These buildings have been upgraded by stringing wiring along the exterior
. of the buildings. The Center also has examples of exterior plumbing
upgrades where extensive piping systems are exposed at the rear of the
building.
Exposed wiring often occurs when structures as originally designed did
not provide adequate electrical capacity or outlets. In an effort to upgrade
these utility systems, electrical wiring and plumbing are sometimes strung
along the exterior of a building where they are subject to damage due to
adverse weather conditions, accidental dislocation, and vandalism.
Exterior wiring is also a potential safety hazard because of the age of the
work, location, and possible lack of compliance with modem code
standards. Substandard wiring is also an indicator of obsolescence (i.e.,
that the building is approaching the end of its useful economic life).
(d)
Serious Code Violations
Violations of local or state building codes are a condition identified under
Section 33031(a) of the CRL, which characterizes buildings that are
unsafe or unhealthy for persons to live or work. Buildings and structures
that do not meet current uniform building requirements, or other local
codes mandated to ensure human health and safety, pose a threat to the
workers, patrons, visitors, and residents of an area.
The City of San Bernardino covers 60 square miles and has a population
of 185,000 (January 1999, State Department of Finance). Because of the
size of the City, code enforcement efforts are, for the most part, limited to
complaint generated enforcement. The majority of the complaints come
from property owners or tenants who observe potential violations in their
neighborhoods. However, due to the fact that code violations are
primarily investigated only if a complaint is filed or observed by staff,
many properties go unnoticed and the true number of total building and
other code violations are likely to be much greater than those reported.
Code enforcement complaints are currently maintained in a computerized
log, which provides updated information on the monitoring of residential
and other structures with code enforcement problems. This information
included years 1997 and 1998, as well as the first six months of 1999.
Code enforcement log data for the Project Area indicates that code
violations have increased by 8% between 1997 and 1998. A total of 32
properties, (or 13.6% of all Project Area properties), were cited with code
violations in 1998. Serious Code Violations have also increased by 8%
between 1997 and 1998. A total of 18 properties, (or 7.6% of all Project
Area properties), were cited with serious code violations in 1998. Serious
code violations involve potential threats to public safety such as illegal
Rosenow Spevtlc~k Gro"p, 11Ie.
November, 1999
8-12
COIllllUlIlIty Developmellt Commissloll
ofth~ City of Sail B~mardlno
Draft Preliminary Report
o
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construction, outdoor storage/trash & debris, illegal home occupancy,
building maintenance violations, and violations which are health code and
fire code violations.
According to a City of San Bernardino Senior Code Compliance Officer
familiar with the Project Area, the most significant problem, although not
the most prevalent, is illegal construction. During the windshield survey,
RSG also identified several instances where additions appeared to be
faulty or illegal. The most frequent complaint in the residential areas is
landscape maintenance. Recent concerns for the Code Compliance
Division has been the neglect, and eventual abandonment, of several of the
apartment buildings on 49th Street, east of Sierra Way. This has created a
situation of blight, adversely impacting the neighborhood and project area.
2. Factors that Prevent or Substantially Hinder the Economically Viable
Use or Compatibility of Buildings or Lots
Buildings in the Project Area were noted as having physical factors inhibiting the
economic viability of properties. Indicators of this condition that were frequently
noted are substandard design, lack of parking, and lots and buildings of
inadequate size.
(a)
Substandard Desilnl
Substandard design is identified as a factor that prevents or substantially
hinders the economically viable use or capacity of buildings or lots under
Section 3303 I (a)(2) of the CRL. Substandard design includes
architecture, site layout problems, and other deficiencies involving the
building or parcel that do not meet the contemporary requirements of users
or residents. The results of the field survey indicate that 32% (nearly one-
third of all properties) exhibit conditions of substandard design.
The most obvious characteristic of substandard design in commercial
properties within the Project Area is obsolescence. Although not
technically defmed as a blighting characteristic, it is most often a result of
a "Combination of factors, including the age of a structure, lack of
maintenance and lack of desirable amenities such as parking and tenant
improvements that occurs as contemporary market standards evolve over
time. This condition often occurs as competing newer, more efficiently
designed buildings or developments emerge. The appeal of obsolete
buildings diminishes, as market conditions and consumer preferences
change, or as factors important to the function for which the buildings
were designed change, making the buildings no longer useful in terms of
their original function or purpose.
Rosenow Spevtlcek Group, Inc.
November, 1999
B-13
Comnumity Development Conunbslon
of the City of San Bernardino
Draft Preliminary Report
o
o
o
As stated above, important factors in determining obsolescence are the
size and design of commercial properties. Along the north side of 40th
Street, several small stand-alone retail stores show signs of deferred
maintenance to extensive rehabilitation. Current market standards make
these small stores less desirable. Further, many of the stores have block
walls or other barriers that inhibit customers from going from store to
store without pulling out on to the busy 40th Street thoroughfare.
The 40th Street Shopping Center is one of the two major retail centers in
the Project Area. The Shopping Center, located on 40th Street between
Waterman Avenue and Lugo Avenue, is 14 acres in size and comprises
19% of the Project Area. Construction began in 1959 and the Center was
completed in 1969 with the addition of the Stater Bros. grocery store. The
original anchor grocery store was destroyed in a fire in the early 1990's.
The building was subsequently demolished and never replaced. Shortly
thereafter, the Center's other anchor tenant, Thrifty Drug, left the Center.
Currently, the Center is 35% ,vacant. The occupied tenant spaces house
marginal, incidental, small tenants and a low-end discount store (Cheapo
Depot). Given its generally poor condition, the Center will likely continue
to suffer from tenant attrition. The lack of maintenance and investment in
the Center, as well as other factors, have caused its deterioration: poor
access from 40th Street, lack of presence on Waterman, poor internal
traffic circulation, and the presence of trash and other debris. In addition,
the many differing facades result in a lack of Center identification, and the
signage is in poor condition and outdated. Multiple ownership of this
property (the Center is owned by eight different owners) has caused
rehabilitation efforts to be nearly impossible. A recently completed
appraisal of one of the properties in the Center states that the multiple
ownership has prevented anyone owner from obtaining financing for
rehabilitation.
There are two businesses along Sierra Way that appear to be converted
homes now being used as retail or production establishments. Both use
metal storage units as an integral part of their business for either storage
and/or production. The metal containers appear to have more floor area
than the buildings that the businesses are occupying. These businesses
exhibit severe signs of obsolescence. They are too small for current
market standards for retail and the service industry. One of these
commercial properties is in need of substantial rehabilitation, with signs of
severe deterioration, such as deteriorated exterior building and roofing
materials, peeling paint, substandard electrical wiring, dry rot, deteriorated
fencing and an adjacent building that is need of demolition. One business
does not have off-street parking and the other offers only a dirt lot.
Rosenow Spevacek Group, Inc.
November, 1999
B-14
Community Dnelopmenl Colfllnlulon
oflhe City of San Bemtutllno
Dnift PreUm/n"". Report
o
o
o
At the very northern portion of the Project Area are several businesses that
offer parking only behind their buildings, with no access "between the
individual businesses. The physical layout of this block of businesses is
very outdated for current trends. The individual business spaces are too
small, have limited access to parking, and are either vacant or house
incidental uses. In an area with a perception of high crime and inadequate
public safety services, these buildings have little chance of being used to
their full potential. Further, the facades of these structures are very often
deteriorated and in all cases outdated.
Another indicator of obsolescence was the prevalence of outdoor storage,
which was noted on many commercial properties particularly along Sierra
Way. The storage of construction materials and equipment, or the
presence of other debris around buildings, not only poses health and safety
hazards, but also has the effect of reducing the economic value of
properties and diminishing the potential for a favorable economic return
on the properties. The presence of outdoor storage is also an indicator that
the existing building stock provides inadequate building space for modern
business activity. When outdoor storage areas are unscreened, as in the
Project Area, it contributes to the declining appearance of an area.
The economic value of commercial land in the general area encompassing
the Project Area has gradually declined over the years as the needs of
modern commercial users have intensified, thereby requiring larger lot
sizes and diverse building amenities. Many of the commercial properties
on the west side of Sierra Way, north of 42nd Street, and intermittent
parcels on the north side of 40th Street, exhibit signs of obsolescence.
These properties lack suitable access and convenient parking. Many are
constructed in a manner that prevents adequate provision for truck
delivery, storage, manufacturing, and production space. As a consequence,
this section within the Project Area has a high proportion of vacant tenant
spaces.
(b)
Lack of Parkinl!
Other factors, similar to substandard design, can also provide or
substantially hinder the economic viability of uses or capacity of buildings
or lots as identified in Section 33031(aX2) of the CRL. Another factor
specific to the Project Area is inadequate parking. Properties that do not
have adequate parking for patrons, employees, or residents, and/or do not
provide satisfactory access for vehicles and pedestrians, experience
diminishing economic value. The field survey results indicate that 30
parcels, or 13% of the properties in the Project Area, do not have the
parking needed to effectively conduct business. It should be noted,
however, that this figure is based upon a field survey in which only gross
deficiencies in parking, such as inadequate on-site and off-site parking
Rosenow Spnauk Group,lnc.
NOvember,lfJfJfJ
B-lS
Community DevdDpment Commission
of the City of San Bernardino
Draft Preliminary Rqwrt
o
o
o
adjacent to a business, were identified. For example, there are two
developments along the western side of Sierra Way, south of 40th Street
that do not appear to have adequate parking. The lots are narrow and
contain several businesses, providing insufficient space for turning around
should all of the spaces be full. These developments do not have alley
access, so all loading must be done in the small narrow parking lots.
Additionally, the strip commercial center to the north of these properties
provides no off-street parking for patrons. Another example of lack of
parking involves a dirt lot that services both a small multi-unit housing
complex and two small businesses. The unpaved lot acts as a dusty front
yard to the housing units while it offers the only parking for these
businesses. In rainy weather this lot may be inaccessible for all vehicles.
Many of the high-density multi-unit developments in the area offer very
limited parking. There is generally not any off street parking for visitors
and only one space per unit for tenants. One space per unit does not meet
current development standards and contributes to the difficulty in renting
the units in these high-density developments. Often this parking it at the
rear of the building, allowing no observation from the units and resulting
in additional opportunities for crime or vandalism to automobiles.
3.
Incompatible Adjacent Uses
Section 3303](a)(3) of the CRL states that adjacent or nearby uses that are
incompatible with each other and which prevent the economic development of
those parcels or other portions of the project area are conditions of blight. These
incompatible uses hinder the economic development of the area by causing a
reduction in the proper utilization of the parcel. Incompatible adjacent uses,
where residential properties are directly adjacent to commercial properties, was
noted on ten of the properties, or four percent of parcels within the Project Area.
One example is the area south of 40th Street, between Sierra Way and Genevieve
Street. The alley stretching north and south is the only buffer between the
commercial uses on the east and the housing on the west. Residents are likely
impacted by truck deliveries being made through this alley. In addition, the
residential neighborhood along Ralston Avenue and Sonora Drive is directly
adjacent to the 40th Street Shopping Center. Since the majority of the loading for
the Center occurs on these streets, the residents are impacted by noise and
congestion. Graffiti and loitering were also observed in this area during the field
survey.
The alley is the only buffer between the houses on the south side of 4] S\ Street and
the retail uses on the north side of 40th Street. Many of these establishments are
fast food restaurants that likely generate significant traffic throughout the evening
hours. Many of them have drive-thru windows that would cause loud residual
noise from the speakers and fumes from the idling traffic.
Rosenow Spnacek Group, Inc.
November, 1999
8-16
Community D/!Vdopment CommisslDn
of the City of San Bemtmlino
Draft Pnllminary Report
.;.;-;.-
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Also, on Sepulveda Avenue a housing unit exists next to the zero lot line of the
adjacent large commercial development that fronts 40th Street. This commercial
development provides no buffer for the adjacent residential neighborhood.
4.
Subdivided Lots oC Irregular Form and Shape and Inadequate Size Cor
Proper Usefulness and Development That Are In Multiple Ownership
Economic dislocation, deterioration, or disuse can result from the prevalence of
lots of irregular form or shape and of inadequate size for proper usefulness and
development. Parcels must be large enough to accommodate the primary
structure, setback areas, parking, and circulation space. Irregularly shaped parcels
frequently occur as a result of a change in the street system or subdivision pattern.
As with the Project Area, such a change can be a result of the construction of
roads that cut across existing subdivisions, causing irregularly shaped remnant
parcels. This is what has occurred between Electric and Mountain View Avenues,
south of 40th Street. A number of residential properties are of inadequate size in
this area. Of the 113 residential parcels in the Project Area, 9 parcels (8%) are
inadequate in size and under multiple ownership.
In order to determine appropriate minimum lot sizes for properties within the
Project Area, the adopted ordinance for commercially zoned properties was
reviewed and analyzed. The results of this review indicate that of approximately
69 commercial parcels in the Project Area, 16 (23%), or nearly one out of every 5
parcels, are inadequate in size and under multiple ownership. These parcels are a
barrier to development because they are frequently difficult or impossible to use
without combining with other parcels. Multiple ownership exacerbates this
problem by complicating land purchases or shared use agreements that would
make these parcels more useful. One of the most severe examples of multiple
ownership is in the 40th Street Shopping Center, which has 8 different property
owners. This has made upgrading and rehabilitating the Shopping Center nearly
impossible. It is extremely difficult to coordinate between property owners to
make necessary improvements to the Center such as improvements to vehicle
access and pedestrian access. In addition, it is impractical for a single individual
owner to finance such a project that would benefit all tenants in the Center.
Due to small lot sizes, coupled with the diversity of ownership, it is unlikely that
the reuse or private redevelopment of deteriorated and obsolete properties would
ever be possible without a land assembly effort. The prevalence of economic
blighting conditions in the Project Area further discourages any prospect of
attracting private sector investment. Even in the unlikely event that two or three
parcels were successfully assembled, these combined parcels would only result in
a site of little more than one acre. Such properties are a barrier to development
because, as stated previously, they are frequently difficult or impossible to use
without combining with other parcels.
Rosenow Spevacek Group, Inc.
NoVt!mber, 1999
8-17
.
Community Dt!Vt!lopment Conunbslon
of the City of SlIn Bnntutlbro
Drll/l Preliminary Report
o
o
o
A major tool of redevelopment is the power to assemble properties and remedy
ownership problems. Properties can be assembled for recycling to newly
developed properties. Viable uses that need to expand can also be assisted with
an agency's power of assembly.
B.
ECONOMIC CONDITIONS THAT CAUSE BLIGHT
The CRL requires that for an area to qualify for inclusion in a redevelopment project area
it must not only exhibit conditions of physical blight, but also must contain and suffer
from economic blight.
To accurately represent existing economic conditions, the Project Area has been analyzed
and information has been gathered from City, County, and private sources to document
the deteriorating economic conditions of the Project Area The folIowing describes the
economic blighting conditions that are present and contribute to the lack of proper
utilization of the properties within the Project Area.
1. Depreciated or Stagnant Property Values or Impaired Investments
(a)
Depreciated or Stalmant Property Values
When assessed values are increasing at a comparable rate to surrounding
areas, such as the City, it is often an indicator of a healthy local economy.
Conversely, if assessed values are declining, especially at a rate greater
than the remainder of the City, or the City as a whole; the area's economy
is likely to be in a state of decline.
In order to examine the health of the real estate market in the Project Area,
trends in secured assessed property values, which include land values and
building improvements for fiscal years 1994-95 through 1999-00, were
analyzed for the Project Area and compared to those for the City and the
County.
Data obtained from the San Bernardino County Auditor-ControlIer's
office indicates that the total secured assessed valuation in the Project
Area has declined by over II % during a six year period, from $42,204,583
in fiscal year 1994-95 to $37,605,723 in 1999-00, compared to a 4.4%
increase City-wide and a 8.5% increase County-wide over the same time
period. This significant decrease in assessed property values in the Project
Area compared to the increases in both the City and the County is an
indicator that the area's economic condition is weak and investment in the
area is impaired. Table 2 below presents the secured valuation for the
. Project Area, the City, and the County for fiscal years 1994-95 through
1999-00.
Rosenow Spevacek Group, Ine.
NovemlJer, 1999
8-18
Co""""nlty Devdopmmt Conrntbskm
of the City of StlR Bemtlrdlno
Draft PnIimlntlty Report
o
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TABLE &.2
ECONOMIC DEVELOPMENT AGENCY OF 11IE
CITY OF SAN BERNARDINO
Co.pal'lltive Secured AuasecI V.... 19M-95 dim.... 1999-00
CHANGES IN ASSESSED VALVA TION
c".",.ftotn
JlIll4JI5 1lI!ISJl6 J-..:: UlWIII .-. Ullll,jJO rv '.AiI .~
Propesed Project Area 542,204,583 538,156,914 538,399,054 537,708,816 537,371,781 537,605,723 -lU'"
City of San Bernardi... 53,353,924,718 53,374,643,6" 53,396,989,862 53,424,621,285 53,467,788,731 53,501,454,880 4.41%
COUllty 0' S.n Bernardino S52.616,134.087 $52.964,717,925 $53.531,875,400 S54.410,823,045 $55.263.360,728 S57,085,428,394 1.4'"
Source: TRW Redi.Data MetroScan and San Bcmardino County Auditor Controller's Office. 1999.
Note: TRW Redi-Data MetroScan data. not Sin Bernardino County Auditor Controller's Office data. was utilized in the analysis of
Proposed Project Area sceured assessed values.
When property values decline or remain constant over an extended period
of time, such as during the period reported above, property owners have
little incentive to reinvest in their property due to an uncertain return on
their investment. Over an extended period of time, lack of investment,
including maintenance, contributes to the decline of an area and eventual
revenue loss to the City, particularly in commercial areas,
(b) Itnpaired Investments
Retail Sales Tax Revenues
Stagnation or decline in sales tax revenues is an important indicator of
impaired investments. The majority of the commercial businesses north of
the 30 Freeway are located within the boundaries of the Project Area.
Although Waterman Avenue, rather than Sierra Way, is used as the
primary thoroughfare to the mountain areas, the primary commercial
corridors of the Project Area (Sierra Way and 40th Street) continue to
sustain sufficient traffic levels, and businesses along these corridors
should be successful. Many of the businesses located on these streets have
been unsuccessful in capturing business from a constant traffic flow as
evidenced by the taxable retail sales information reported by the California
State Board of Equalization and data provided by MBIA MuniServices
Company.
RSG compared the taxable retail sales information provided by MBIA for
the Project Area and the same information for the City and County of San
Bernardino between 1993 and 1997. For this period, the taxable retail
sales in the City and County increased by 9% and 26%, respectively.
Other surrounding cities, including Rialto, Colton, and Redlands have
experienced increases up to 44%, However, the Project Area has suffered
a significant 10% decrease in taxable retail sales for the five-year period.
Rosenow Spevacek Grollp, Inc.
November, 1999
8-19
Colflltfllnity Developnwrt Commission
of the City of SlIn Bemtutllno
D",ft Pre1lmln"'Y Report
o
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TABLE B-3
SAN BERNARDINO COMMUNITY DEVELOPMENT COMMISSION
Taxable Sales Trends, 1993 through 1998
40 s....t Project A....
City of San Bernadino
County of San Bernadino
City of Colton
City of Redlands
City ofRi""
1993 1994 1995
Taxabl. S.... % chanc. Taxable SaI.. % change Taxable Sales % change
357,!181 N/A 337,!18O .5.59% 329,678 .2.46'"
1,677,97C N/A 1,727,COO 2.97% 1,747,319 1.13%
11,131,798 N/A 11,843,466 6.39% 12,482,309 5.39%
391,231 N/A 397,593 1.63% 415,493 4.50'''
434,990 N/A 452,449 4.01% 459,561 1.57%
325,543 N/A 331,805 1.92% 351,715 6.()()D/o
1993-1997 %
1996 1997 1998 CHANGE
Taxable S.... % change Taxable S.... % change Taxable Sales % change
3J6,824 2.17% 321,685 -4.49% N/A N/A -10.14% .
1,792,467 2.58% 1,827,233 1.94% 1,960,752 7.31% 16.85%
13,126,523 5.16% 14,005,016 6.69% 15,013,657 7.20''' 34.87%
410,918 -1.10% 394,069 -4.10'/0 424,576 7.74% 8.52%
477,436 3.89% 521,703 9.27"" 553,607 6.12% 27.2",.
391,953 11.44% 468,630 19.56% 505,735 7.92% 55.35%
40 S....t Project Aroo
City of San Bernadino
County of San Bernadino
City of Colton
City ofRedlands
City ofRi"to
. Taxable S"e. percent chance from 1993.. 1997.
Source: C"ifomia StaIC Board of Equalization and MBIA MmliScrviccs Company
The results of the analysis of the State Board of Equalization and MBIA data
presented above indicates that many of the existing retail businesses in the Project
Area are performing below standard with regard to sales. Additionally, the
analysis indicates that significant retail sales tax leakage is occurring as residents
and other business patrons are traveling outside of the Project Area to purchase
goods and services.
2. Abnormally Low Lease Rates
A fhone survey was performed of local realtors leasing commercial space in the
40 Street Project Area. In general, the realtors stated that the lease rates in the
area were lower than in surrounding communities. One realtor stated that the
average lease rate was $.95 to $1.00 in the area. However, his company currently
offered three 500-square foot offices for $250 per month, or $.50 per square foot.
Another newer building on Sierra Way was leasing commercial space for $.50 to
$.75 per square foot.
Rosenow SpevtJCek Group, Inc.
November, 1999
8-20
Community Development Colflllfisslon
oftlte City of Sa Bemardino
Draft PnI/mIna" Rqwrt
o
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One realtor handling the several vacancies in the Lucky's Shopping Center on
Sierra Way stated that a number of spaces available in the Center (ranging from
1,000 to almost 5,000-square feet in size) had been vacant for at least the past
three years. Recently he has tentatively leased some of these spaces because he
has been "aggressively" advertising a lower per square foot lease rate, offered
graduated lease payments and other incentives. Local realtors have indicated that
the Lucky.'s Center is the "premiere" Center in the area even though there are
extreme difficulties leasing its space.
Many of the higher density apartment buildings in the area are offering "Move_In"
specials. These offers advertise very low first month rent in order to entice
tenants into their complex. The offers were from $0 for the first month's rent up
to a $299 move-in cost. This would seem to demonstrate that these complexes are
in dire need of tenants and need to compete with each other by offering units at or
below cost in order to alleviate vacancies in their apartments. These complexes
all appear to be high-density buildings with few amenities. They vary
significantly in their condition, from a newly rehabilitated complex with a pool to
very deteriorated units and grounds with poor access, little or no open space and
minimal off street parking.
3.
High Business Vacandes
High vacancy rates or high turnover rates in businesses provide an indication of
the presence of economic blight. A vacancy survey was conducted in June 1999
as part of the field survey to determine the vacant parcels, buildings, and tenant
spaces within the Project Area In addition to identifying vacancies during the
field survey, the names and phone numbers of real estate brokers representing the
vacant buildings and/or tenant spaces were noted. These brokers were
interviewed regarding the size of the vacant buildings or tenant spaces, as well as
how long the property had been vacant. The results of the field survey, and
interviews with local real estate agents, indicates that of the 69 commercial
parcels in the Project Area, a tota! of 16 properties, or 23%, are partially or
completely vacant. Real estate broker interviews and recently completed
appraisals of commercial properties cited the poor condition of the structures,
small tenant spaces, and the perception of criminal activity as primary factors
affecting vacancy in the Project Area.
The majority of the units that were vacant during our June 1999 survey remained
so in late August 1999. This is further evidence of a lack of investment in the
Project Area.
There are several parcels that appear to have been vacant for long periods of time
or are abandoned. On the southeast comer of Sierra Way there are several vacant
or abandoned buildings. One of these buildings has apparently been vacant so
long that there is no longer any evidence of its original use. Another building that
remained vacant during our second survey was previously a restaurant that has
Roseltow Spevtlcek Group, lite.
November_ 1999
B-21
Commultity Developmelt' ColllltllssiDIt
of the City of SIIIt Bemllrtlitto
DI't1jt PreJimittllry Report
0 Tenant
Sh!!llDinl! Center Soaces
4276 N. Sierra - Commercial Strip 9
4236 N. Sierra - Commercial Strip 5
40th Street Shopping Ceoter 65
Lucky's Shopping Center 17
171 W. 40th Street - Commercial Strip 8
3990 N. Sierra - Commercial Strip 5
3970 N. Sierra - Commercial Strio 4
o
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relocated across the street to a larger site. The last building on the parcel was a
liquor store that seems to have been abandoned, since there is no "For Lease" sign
evident. It has suffered further damage in the intervening months since our initial
survey. The building may be so obsolete and in such bad condition that
demolition is its only option.
What appears to be a prime commercial lot on the northwest comer of Waterman
Avenue and 40th Street does not exhibit a "For Development" sign. This may be
further evidence of the high vacancy rate in the area in that the owner would
rather "hold" this property than try to develop it.
In order to illustrate the magnitude of the commercial/retail vacancy problem, the
field survey data was aggregated to show the vacancy rate of each shopping
center and strip mall in the Project Area (Table 4). As shown in Table 4, all but
one shopping center has vacancies. The centers located at 4276 North Sierra Way
and 4236 North Sierra Way have critical vacancy rates of 89% and 40%,
respectively.
TABLE B-4
ECONO~CDEVELOPMENTAGENCYOFTHE
CITY OF SAN BERNARDINO
Shopping Centen and Strip Malls in Survey Area
Vacant Teoant
Soaces
%
Vacant
8
88.89%
2
40.00"10
23
35.38%
6
35.29%
2
25.00%
20.00"10
o
0.00%
Due to the fact that there are a number of well-developed retail centers within a
fifteen-minute drive of the area, the Project Area has encountered great difficulty
in attracting larger retail businesses. The composition and quality of the existing
retail stock further exacerbates this problem, as very few of the retail centers in
the Project Area contain large enough structures to house a "large" retailer or a
value oriented discount retailer. Because of this, developments in other parts of
ROSDlo.. Spnacek Group, Ine.
November, 1999
B-22
Co_nlly Development CollUfl/sslon
of the City of Stili Bemardino
Draft Preliminary Report
o
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the City not only draw residents out of the Project Area to purchase goods and
services, but also inhibit other national retailers from adding locations in the area.
4.
A High Crime Rate That Constitutes A Serious Threat To The Public Safety
and Welfare
According to CRL, "a high crime rate that constitutes a serious threat to the public
safety and welfare" is a condition of economic blight. In order to assess the
impact of crime within the Project Area, information regarding the incidence of
violent and other serious crime reported by the San Bernardino Police Department
for the Project Area was analyzed. As shown in Table 5, the number of serious
crimes reported in the police districts that encompass the Project Area has
increased between 1996 and 1997. Complete data for 1998 was not available.
TABLE 5
ECONOMUC DEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
Crime Statistics for 40th Street Redevelopment Project Area .
YEAR MURDER RAPE ROBBERY A.ASSAULT BURGLARY LARCENY G.T.A TOTAL
1996 0 4 45 43 143 220 93 548
1997 I 4 28 43 108 240 134 558
1998 2 2 26 36 76 179 99 420
1999" 0 I 13 28 50 139 43 274
· - Reporting Districts roughly encompass the following geographic boundaries:
North - 48th Street, South - Parkdale Street, East - Waterman Avenue, West _ H Street
.. - Crime Statistics by specific geographic regions for 1999 was only available for the time span of
January I, 1999 to August 31, 1999.
These types of crimes can be potential safety threats, negatively impacting
existing businesses in the Project Area, and may discourage business investment
and patronage in the area. This has been confirmed by information gathered from
local real estate brokers. Additionally, appraisals conducted for commercial
properties in the area indicate that crime, and/or the perception of criminal
activity, has negatively impacted the Project Area. Crime represents an additional
cost in conducting businesses, as well as a deterrent to attracting new businesses
to the Project Area. Crimes such as rape, burglary, and assault not only affect
business owners and tenants, but also discourage patronage. Businesses located
in areas perceived to have a crime problem suffer from increased insurance and
other costs as a result of stolen merchandise, fraud, vandalism, or other crimes.
Increases in crime rates may also negatively influence property values in an area
by diminishing the area's desirability. Given the location options within the
competitive market area and the potential threat to personal safety and property,
crime presents a threat to the economic viability of the Project Area.
Rosmow Spevacek Group, Inc.
November, 1999
8-23
COmmllnlty DeveloptMnt Conunbslon
01 the City 01 San BemtUtllno
Draft Preliminary Repon
o
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In the Project Area, according to a Police Department representative residents
have also expressed a concern about aggressive "pan handling" by the homeless
population that resides in the Park just adjacent to the Project Area. During
RSG's. land use survey, several persons who appeared to be homeless were
loitering at or around the 40th Street Shopping Center.
When interviewed, a Police Department representative further stated that "this
area used to be one of the nicer areas in the City, although over the past 20 years
the area has declined." He said, "that residents have a perception deteriorating
with higher crime, and decreased public safety."
( a) Ganlls and Graffiti
Also detrimental to property values is the presence of graffiti. Graffiti
affects the condition of a property and adds an extra cost and concern to
doing business in communities where it is prevalent. Aside from the cost
and effort of removal, graffiti can also be a detriment to investment and
reinvestment, since it is often a sign of gang activity - a hazard businesses
and residents avoid whenever possible.
During RSG's parcel by parcel survey it was apparent that graffiti was a
chronic problem in the Project Area. There was evidence of painted over
graffiti throughout the area as well as patches of existing graffiti. In a
discussion with a Police Department representative, he acknowledged the
graffiti problem and expressed the City's goal of consistently removing
graffiti as soon as possible. He stated that the problem in the 40th Street
area comes in waves, as does most graffiti, and is predominately done by
taggers who come to an area to "bomb" it (cover it with graffiti). One
tagger crew will follow another and try to "raid the area" by "bombing" it
more severely, by covering the other group's graffiti with their own.
Gangs also use graffiti to claim territory or send other messages. This type
of graffiti is less prevalent in the Project Area. Because of the graffiti
problem, the City's task force of five police officers has recently been
assigned to address the situation. This group of officers targets trouble
spots throughout the City and try to alleviate the graffiti problem. This is
done: through education, enforcement, and punishment.
The predominate gang in the area is a white supremacist group that, unlike
most gangs, is not territorial. This gang specializes in burglaries, credit
card fraud, and other crimes detrimental to local merchants. However,
gang enforcement in the western portion of the City has pushed some
Hispanic gangs into the Project Area. While these gangs are more
. territorial and therefore visible on the street, their presence in the area is not
strongly established.
Rosenow Spevlluk Group, Inc.
NoVt!m/1er, 1999
8-24
ColffltUlnlty DeVt!hJpmmt Comnrl6sion
of the City of Sa Bl!nlllrdino
Draft Pnllm/nllry Rqwrt
o
o
o
SUMMARY
Due to the age of the buildings in the area and a lack of private investment to maintain or
redevelop property, the Project Area is characterized by both physical and economic blighting
conditions. Properties in the Project Area suffer from deterioration and dilapidation, are of
inadequate size given present market requirements, and are often under multiple ownership. The
Area contains incompatible adjacent or nearby land uses, a prevalence of stagnant property
values, a declining sales, and overall economic maladjustment. These conditions are exacerbated
by the existence, and/or, perception of crime and decreased police services, which not only
threatens the public safety and well-being of residences and businesses, but discourages potential
business patrons from shopping in the area.
The presence of these physical and economic blighting conditions cause a reduction in utilization
of the Project Area to such an extent that it constitutes a serious physical and economic burden.
on the community. These conditions have not been, and cannot reasonably be expected to be,
reversed or alleviated by private enterprise, governmental action, or both, without
redevelopment. It is essential that redevelopment tools and powers be available to address these
problems or they will continue to worsen.
Rosenow Spt!Vflcek Grollp,lnc.
November, 1999
8-25
Colttmllnity Dt!Vt!/opnwrt Commission
of the City of Stili Bemtudlno
Drtlft Prellm/n/l'}l Report
o
o
o
SECTION C
A Determination as to Whether the Project Area is
Predominantly Urbanized
Section 33344.5(c) of the CRL requires a description of the Project Area which is sufficiently
detailed for a determination as to whether the Project Area is predominantly urbanized. CRL
Section 33320.l(b) defines "predominantly urbanized" as not less than 80% of the land in the
project area: (1) has been or is developed for urban uses; or (2) is characterized by the existence
of subdivided lots of irregular form and shape and inadequate size for proper usefulness and
development that are in multiple ownership; or (3) 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.
Section 33344.5 requires that this Preliminary Report include a description of the following
conditions with respect to the Project Area, which is sufficiently detailed for a determination on
whether the Project Area is predominantly urbanized:
(1) The total number of acres within the Project Area.
(2) The total number of acres that is characterized by the conditions of blight described
in paragraph (4) of Section 33031 of the CRL (the existence of subdivided lots .of
irregular form and shape and inadequate size for proper usefulness and development
that are in multiple ownership).
(3) The total number of acres that is an integral part of an area developed for urban uses.
(4) The percent of property within the Project Area that is predominantly urbanized.
(5) A map of the Project Area that identifies the property described in items (2) and (3)
and the property not developed for an urban use.
The Project Area contains a total of approximately 83 acres. All of the 83 acres in the Project
Area are developed for urban uses. Although there are approximately 6.26 scattered acres, or
7.5%, of vacant land, these parcels are an integral part of the Project Area. They are an integral
part of the Project Area because they are surrounded by parcels which are developed. The
Urbanization Maps (Sheets 1 of 5) of the Project Area identify 25 parcels in the Project Area that
are characterized by conditions of blight, as described in paragraph (4) of Section 33031 of the
CRL, which defines lots of irregular shape and inadequate size and development in multiple
ownership. The Project Area meets all requirements of the CRL necessary to be included in a
redevelopment project area.
Rosenow Spt!VtJCek Group, IIIe.
November, 1999
C-l
Commulllty Development Colflllfbsloll
of the City of San Bemtutllllo
DTllft PrelJmlllaty Report
o
o
o
TABLEC-l
SAN BERNARDINO COMMUNITY DEVELOPMENT COMMISSION
40TH STREET REDEVELOPMENT PROJECT
PERCENT OF 40m STREET REDEVELOPMENT PROJECT
PROPERTY PREDOMINANTLY URBANIZED
Total No. of Acres in konomic Revitalization Project:
Acres
83
Percent
100%
Total No. of Acre. of Inadequately Sized Lots in
Multiple Ownenhip (Redevelopment
Law Section 3303] (a) (4): (1)
Total No. of Acre. for Agricultural U.es:
5.15 6.%%
0 0.0%
76.74 9%.5%
6.%6 7.5%
83 100"1.
83 100%
Total No. of Acre. that i. Developed for Urban Uses:
Total No. of Acres of Vacant Land That i. an Integral
Part of an Area that i. Predominantly Urbanized:
Total No. of Acres that is an Integral Part of an
Area that i. Predominantly Urbanized: (2)
Property that I. Predominantly Urbanized:
(I) Includcs all properties which are under the minimum lot size requirement and the minimum lot size exception.
(2) All properties, including vacant properties, are considered urbanized since they are within, or are an integral
part of an urban area.
Source: San Bernardino County 1998-99 Assessment Roll and Maps.
Rosenow 8pevt1c~k Grollp, life.
Novemb~r,1999
C-2
COlfllfUllfity DndoJ1l1fD1t COIIIIIfbsIoIf
ofth~ City of 8/11I B~",tlt'dilfo
Draft Preliminary Report
o
o
o
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.-
CITY OF SAN BERNARDINO
Proposed 40th Street Redevelopment Area
o
SECTION 0
A Preliminary Assessment of the Proposed
Method of Financing the Redevelopment of the
Project Area, including an Assessment of the
Economic Feasibility of the Project and the
Reasons for the Provision of Tax Increment
The Redevelopment Plan authorizes the Commission to finance redevelopment activities with
financial assistance from the City, State of California, Federal government, tax increment funds,
interest income, Commission bonds, donations, loans from private fmancial institutions, the lease
or sale of Agency-owned property, or any other available source, public or private.
GENERAL FINANCING MEmODS AVAILABLE TO THE AGENCY
Redevelopment of the Project Area is proposed to be financed with a combination of a variety of
resources including:
.
0 .
.
.
.
.
.
Financial assistance from the City, State of California, and/or Federal Government;
Tax increment revenue;
Commission bonds or other obligations;
Proceeds from the lease or sale of Commission - owned property;
Participation in development;
Any other legally available source; and
Loans from private financial institutions.
o
Financial Assistance from the City, State, and/or Federal Government
These funds shall include loans and advances for planning, construction and operating capital for
implementation of the Plan. As available, other funds, such as gas tax funds and Cornmunity
Development Block Grants (CDBG), may also be used to pay the costs of project
implementation. The Agency and the City will work together to pursue available grants and
loans to assist with project implementation. The City or other public agencies may also issue
bonds on behalf of the Agency and provide in-kind assistance.
To provide the necessary fmancial tools to initiate revitalization within the proposed Project
Area, the City has obtained and cornmitted the use of an Economic Development Initiative (EDI)
grant in the amount of $344,000 and has qualified for a $2,295,000 Section 108 Loan from HUD
for the 401h Street Shopping Center. These funding sources will allow the Commission to jump
start revitalization activities prior to receipt of adequate amounts of tax increment revenue begin
to flow to the Project Area.
Rosellow 8pl!VtlCl!k Group, file.
NOVflmber, 1999
D-I
CO""""IIity DI!vdop_t Ctnrrmissloll
Of the City of 8M Bttmtudino
Drtljt P",liminary Rqwrt
o
o
o
Property Tax Increment Revenue
The Commission will use property tax increment revenue as provided for in Section 33670 of the
CRL as the primary -long term fInancing mechanism to implement the Plan. Tax increment
revenue may only be used to pay indebtedness incurred by the Commission. Generally,
indebtedness includes principal of and interest on loans, moneys advanced, or indebtedness
(whether funded, refunded, assumed, or otherwise) incurred by the Commission to fInance or
refInance, in whole or in part, redevelopment activities.
Tax increment revenues from the Project Area are generally distributed in three ways: (I) to the
housing fund; (2) to affected taxing entities through statutory payments; and (3) to the
redevelopment fund. As required by Section 33334.2 and 33334.3 of the CRL, unless certain
fIndings are made, twenty percent (20%) of Project Area tax increment revenue is deposited into
the Commission's Low and Moderate Income Housing Fund ("Housing Fund") for the purposes
of improving, expanding, and preserving the supply of affordable housing. Housing Funds may
be used by the Commission, among other things, to defray infrastructure costs directly benefIting
low and moderate income single and multifamily housing, to purchase and write-down the cost
of land, to rehabilitate residential units, to provide assistance for home ownership opportunities
for qualifIed persons and families, and to subsidize mortgage and rental payments. Section
33607.5 of the CRL requires the Agency to make certain payments to taxing entities that receive
a portion of the property taxes derived from the Project Area. Over the projected 45-year period
in which the Agency is eligible to collect tax increment, approximately 31 percent of the total tax
increment received by the Agency would be paid to affected taxing agencies. After the required
allocation of tax increment to the affected taxing entities and the Housing Fund, the remaining
tax increment revenues will be deposited into the "Redevelopment Fund," and be used to pay for
housing or non-housing programs, including related bond debt service costs. Redevelopment
Fund revenue can also be used to fmance the proposed infrastructure and land acquisition efforts
within the Project Area.
Bonded Debt
Under the Plan, the Commission would have the capacity to issue additional bonds and/or notes
or other obligations for any of its corporate purposes, on which the principal and interest are
payable in whole OT in part from tax increment revenue. Historically, bonded debt has been an
integral component of any redevelopment agency's fInancing program to eliminate blight in
redevelopment project areas. In order to advance the redevelopment of the Project Area, the
Commission must be permitted the ability of issuing notes or bonded indebtedness. Financial
analysis of the Project Area's Redevelopment Fund and Housing Fund revenue projections
indicate a capacity to support bonded indebtedness of at least $11 million. In order to
accommodate potential project cost inflation, a total bond limit of $20 million, adjusted armually
in accordance with the Los Angeles-Anaheim-Riverside Consumer Price Index (CPI) for all
urban consumers (where 1982-84 equals 100), published by the Bureau ofLabor Statistics of the
U.S. Department of Labor, has been provided for in the Plan. In the event the CPI ceases to be
published, an acceptable replacement index shall be applied. Setting such a bond limit will allow
implementation activities to be maximized even in a high cost inflationary economy.
Rosenow Spevacek Gro"p, Inc.
November, 1999
D-l
COmmllnlty Development Commission
Of the City of San Bemardlno
Draft Preliminary Report
10
o
o
Lease or Sale of Agency-Owned Property
If the Commission acquires property within or outside of the Project Area, the revenue generated
by selling or leasing such properties may be used to pay the costs of Redevelopment Plan
implementation.
Participation in Development
The Commission, through the adoption of Owner Participation Rules, will encourage and give
preference to existing owners and businesses to participate in implementing the Plan. Such
participation will typically involve negotiation of an Owner Participation Agreement between the
Agency and ownerlbusiness. If the agreements with property owners, tenants and/or other
developers provide for revenues to be paid or repaid to the Agency, such revenues may be used
to pay project costs.
Other Available Sources
Any other loans, grants or financial assistance from the United States, or any other public or
private source will be utilized, as available and appropriate. The Agency will also consider use
of the powers provided by Chapter 8 (Redevelopment Construction Loans) of the CRL to
provide construction funds for appropriate projects. Where feasible, the Agency may use other
types of financing to pay for the costs of public infrastructure, facilities and operations.
PROPOSED REDEVELOPMENT ACTIVITIES AND PROJECT RELATED COSTS
Proposed Redevelopment project costs consist of $16 million for public projects and
improvements, and $10 million for economic development, commercial rehabilitation program,
business expansion and retention program are needed to redevelop the Project Area (Table D-3).
Funds for administration must also be provided and have been estimated at 10% of project costs.
Because projects will commence construction over the next thirty (30) years, significant cost
inflation may occur so some inflation should be anticipated.
As previously stated, CRL requires that twenty percent (20%) of all tax increment revenue be
set-aside for low and moderate income housing programs unless certain findings are made.
Thus, twenty percent (20%) of the total tax increment will be set aside for project costs so this
obligation can be met.
Section 33607.5 of the CRL requires that the Commission remit statutory payments to affected
taxing entities.
ROSI!1IOW 8pevauk GroIlp, Inc.
NOvember,1999
D-3
COIIIIfUInlty DeveloplMllt COIIfIIfbalon
Of the City 018M Bemtutllno
Dmft Preliminary Report
o
o
o
ESTIMATED TAX INCREMENT REVENUE AND BONDING CAPACITY
Table D-I presents a preliminary estimate of the tax increment revenue, which will be generated
from the Project Area over the life of the Plan. In addition to growth anticipated from new
development, the projections assume growth factors for the Project Area ranging from two
percent (2%) to jive percent (5%) annually for secured property and one-quarter of one percent
(0.25%) for unsecured property. These factors include provision for rehabilitation.
redevelopment. property sales. and the maximum two percent (2%) growth allowed by
Proposition 13. Although these rates may be exceeded in some years, these are likely to be the
average rates over the next forty-five (45) years.
Table D-I presents the Project Area's projected total tax increment revenue, low/moderate
housing revenue, pass-through payments to affected taxing entities and the remaining revenue
available to fund implementation projects.
Tables D-2 and D-3 provide a bonding capacity analysis of the "remaining revenue" or
Redevelopment Fund available to fund implementation projects. The bond analysis assumes the
following:
a. Bonds are issued in various years as depicted on the tables.
b. Bond terms of:
· 5.00% interest
· Two 30-year fully amortized, and one with 25-year amortization
· I 10% coverage factor
The analysis concludes a bonding capacity of approximately $ 11 million.
Rosenow Spevacelc Grollp, Inc.
November, 1999
D-4
Cotnmllnity DneloplMnt Commission
Of the City of Stili Bmrllrdlno
Drllft Prellminllry Report
o
o
o
TI8.E[)'1
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Rost!1low Spevtlcek Grollp, Ine.
November, 1999
D-5
COlflllUlnity Developtnt!1lt COmmissum
Of the City of San Bemllrdlllo
Drtlft Pre/iminary Report
0 .... F_ No' _ ,........ _..-w .... Bond T.... Bond Cov.rage i - -
v_ V_ TIX b..... C.... Funds P....- -- _ _olio , on RIIHfYeI -........
-.., -
." 1.5" 1"" 1.10 ."
" 1999-2OO!
, 20ll("" I O!
, 2002~ I 81.180 0' 81,180
2002-D3 I ,
). 148,184 0' 1048,184
. 2003-04 236,556 oj 236,5S6
5 2000-05 265,036 0 265,036
. 2OO5.Q6 293,712 , 0, 293,712
7 2OOIl-07 323,817 .,525,327 j 67,SIO 45.2,533 4,004,915 294,379 ! 21<,3701 1.10 : 22.627 j 52,006
. 2007~ 35M21 204,3701 1.21 : 22,627 i 83,6"
. 2008-00 388,801 284.379] 1.32 I 22,627 : 116,84
" 2DOS-10 423,434 21<,3701 1.44 i 22,&27 : 151,681
" 2010-11 452.324 2IM.3791 1." 22,627 ! 110,571
" 2011~12 "',854 294,3791 1.64 ' 22.627 210,901
13 2012-13 514,496 2904.379) 1.75 22627 242,7'"
" 201~14 541,258 294,379 1." 22,627 ,,",508
" 2014-15 561,087 204'3701 1.03 22,&27 207,335
" 2015-16 508,028 3,&26,366 54,395 362,837 3,209,a:w 235,900 530,279 1.13 40,758 108,50S
" 2016-17 628,119 530,270 1.18 40,758 138,_
" 2017-18 658,.413 ,30,2701 1.24 40,758 169,892
" 2018-19 691,955 530,270 1.30 40,758 202,434
...
2019-20 725,795 2,500,000 37,500 250,000 2,212,500 1n,381 707''''/ 1.03 53.258 71,393
" 2020-21 760,985 707,660 I." 53,258 106,583
~ 2021-22 797,580 707,660 1.13 i 53,258 143,178
" 2022-23 835,635 707,860 1.18 i 53,258 181,233
" 2023-24 885,338 707,660 1221 53,258 210,938
" 2024-25 805,030 707,660 1271 53,258 241,528
0 " 2025-26 927,437 707,660~ 1.31 53,258 273,035
" 2026-27 959,887 707,860 1~1 53,258 305,485
" 2027-28 993,307 707,660 UO 53,258 338,005
" 2028-29 1,027,728 707,860 1.45 53,258 373,326
" 2020-30 1,083,179 707,680 1,SO 53,258 408,m
31
" 2031-32 TOTAL BONDING 1." 53,258 469,758
" 2032-33 CAPACITY 1.63 53,258 501,625
" 2033-34 "0..'.. 1." 53,258 534.445
" 2034-35 FUNDI REMAINING 1.73 53,258 5&8,248
" 2035-36 "'.1H.1H 1.78 53,258 803,063
" 3036-37 (IncludH,..... IIY...... M'Ie, 1.83 53,258 638,920
" 2037-38 debt HrYIce Md I........ on 1." 53,258 675,851
" 2038-30 ,.....,. MIlia) 1.83 53,258 713,888
" 2030..<> 1,00 53.258 753,063
" 2040-41 2.05 53,258 793,412
" 2Q.41-42 2.10 53,258 834,'"
" 2042-43 2.17 53,258 en,no
.. 2....... 2.23 53,258 921 ,853
CO ....... 2.29 53,258 967,257
Totals 10.651.693 159,7 5 1,065,169 ,426,748 1,751,394 16,196,736
o
Rosenow SpevtlCt!k Group, Inc.
November, 1999
D-6
COmmllnity Development Conrnrlsslon
Of the City of Stm Bemtudlno
Draft Prelimlnuy Report
o
ASSESSMENT OF THE ECONOMIC FEASIBILITY OF THE PROJECT
A list of the currently identified proposed redevelopment projects is presented in Table E-l of
this Preliminary Report. The total proposed project costs to be paid by the Commission are
estimated to be approximately $28.9 million, including administrative costs. In order to
adequately assess the economic feasibility of the Project, the total proposed program/project
costs have been compared with the tax increment calculations shown on Table D-1. The project
feasibility analysis presented on Table D-4 indicates that approximately $55.2 million of tax
increment will be generated by the Project. Of this amount, approximately ~17.6 million is
Rosenow Spevacek Group, Ine.
November, 1999
0-7
Community Development Comnrisslon
Oftlte City of San Bernardino
Draft Pre/intinary Report
o
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required to be set aside for low and moderate income housing and $1 I million must be allocated
to the statutory pass-through payments to affected taxing agency pursuant to Section 33607.5 of
the CRL. The remaining $26.6 million will be available to pay for Agency projects. As show on
Table 0-4 there appears to be a short fall in need project funding of approximately $2.3 million.
However, as stated previously, the City has obtained and committed the use of an Economic
Development Initiative (EDI) grant in the amount of $344,000 and has qualified for a $2,295,000
Section 108 Loan from HUD for the 401b Street Shopping Center. These funding sources will
allow the Commission to jump start revitalization activities prior to receipt of adequate amounts
of tax increment revenue begin to flow to the Project Area and make up for the estimated
shortfall in Project revenue.
As stated above, Table 0-1 indicates that the Housing Fund is projected to receive approximately
$11 million over the life of the Plan. The Agency intends to use these funds citywide to improve
and expand low and moderate income housing opportunities
THE TAX INCREMENT PROJECTIONS USED IN TABLES D-I ARE SOLELY TO
DEMONSTRATE TAX INCREMENT POTENTIAL AND SHOULD NOT BE USED TO
SIZE BONDS OR PROJECT ACTUAL FUTURE INCREMENT.
Table 0-4 below presents a summary of the project costs, tax increment revenues projected to be
available, and a finance plan. The finance plan shows that there is estimated to be sufficient
revenue to cover costs and, therefore, the project is economically feasible.
TABLE D-4
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
40TH STREET REDEVELOPMENT PROJECT AREA
PROJECT ECONOMIC FEASIBILITY
TAX INCREMENT REVENUE AVAILABLE TO SUPPORT
NON-HOUSING PROJECTS
Total Tax Inrement Revenue
Less LowlModerate H~using Fund Set Aside
Less Mandatory Pass Through Payments
Total Net Tax Increment to Fund Non Housing Projects
NON-HOUSING PROJECTIPROGRAMS
In 1999 DoOars
$55,183,020
$",035,042
$17,560,170
$26,587,807
Economic Development Projects
Public Inprovements/Facilities Projects
Subtotal
Administrative Costs @ 10010
Total Non-Housing ProjectlProgram Costs
Net RemainingTax Increment Revenue for Non.Housing Projects
$10,000,000
$16,300,000
S26,300,OOO
$2,630,000
$28,930,000
($2,342,193)
Rosenow Spevacek Group, Inc.
November, 1999
DoS
COllflllllnlty DeveloplffDlt Commission
Of the City of SIII/ Ihmtutlino
Draft l'reIlmin,,'Y Repon
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REASONS FOR THE PROVISION OF INCREMENT REVENUE
The provision of tax increment revenue must be included in the Redevelopment Plan because
other sources are nQt available or are insufficient to finance the costs of redevelopment of the
Project Area. Utilization of tax increment financing for this Project will provide the resources to
develop a consistent and directed approach to activities and programs needed to eliminate blight,
provide for the improvement of infrastructure, and aid in the expansion of the Project Area's
economic base. It is commonly agreed that when adverse conditions are not addressed, the
resulting physical and financial impacts imposed by these conditions will exacerbate the existing
blighting conditions. It will cause serious economic hardships and undue disruption of the lives
and activities of people working in the Project Area and the City.
Since both federal and state govemments are under extreme budgetary shortfalls, it is extremely
clear that federal and state assistance in providing funding for necessary public infrastructure
improvements and facilities cannot be reasonably expected. The City does not currently have or
expect to have the available fmancial resources to fund the magnitude of improvements
necessary to reverse the adverse conditions present in the Project Area. In fact the City has
identify federal grant monies that will be dedicated to initiating this Project. Other financing
programs available to the City, such as assessment districts, may not be workable for the type
and amount of improvements required. Assessment districts could impose such detrimental
financial burdens that area businesses and potential developers would be unable to bear such
costs. As indicated by the blighting conditions, which can be found throughout the Project Area,
property owners do not have the resources to maintain their properties, much less rehabilitate
them. In instances where re-parcelization needs to occur, the Commission's powers and
fmancing will be necessary. . Therefore, it cannot be reasonably expected that private enterprise
acting alone would have the means to accomplish redevelopment of the Project Area. Without
the provision of tax increment revenue financing, sufficient revenue would not be available to
fund the needed programs and improvements.
Rosenow Spevacek Group, Inc.
November,I999
D-9
COlffllfllnlty Development Conunbsion
O/the City 0/ San Bernardino
Draft Preliminary Report
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SECTION E
A Description of How the Proposed Projects to be
Pursued by the Commission Will Improve or Alleviate
Physical and Economic Conditions in the Project Area
The Commission will encourage the following proposed projects in order to alleviate and prevent
the reoccurrence of blighting conditions throughout the Project Area. The Commission proposes
to implement redevelopment activities envisioned in the Plan through commercial and residential
revitalization activities. These projects include: 1) economic development, 2) public
infrastructure improvement, and 3) low and moderate income housing. The Commission's list of
projects and their respective costs are summarized in Table E-l. The blighting conditions, which
will be alleviated, are discussed below.
ECONONUCDEVELOPMENTPROG~S
Economic development programs are needed to improve the Project Area's economic base.
Commission staff will pursue reuse, redevelopment, and revitalization of nonconfonning, vacant
or underutilized properties through marketing of the area and encouragement of private sector
investments. The initial focus may be on the revitalization of the neighborhood commercial
centers on 40th Street and Sierra Way. Proposed projects may include attracting a "Big Box"
retailer, remodeling the shopping centers and enlarging existing retail stores.
Another component may be the implementation of a commercial rehabilitation program, in the
fonn of grants and/or low interest loans to businesses. This program would involve upgrading
outdated facades and enlarging commercial space to better meet today's market trends. This
program would also assist property owners and businesses in replacing deteriorated signs, and/or
signs, which do not meet current City codes.
In order to support the economic development and commercial rehabilitation programs, the
Commission proposes a proactive Business Expansion and Retention Program that would
encourage new businesses to locate within the boundaries of the Project Area and assist in the
retention of existing businesses. This program would market the area to prospective businesses,
while also assisting existing businesses to remain in the Area or to expand by offering technical
assistance as well as commercial rehab. By marketing an array of redevelopment tools, which
could include land assembly, acquisition and site preparation activities, and commercial
rehabilitation, this program would provide incentives for businesses to relocate to the area.
The economic development program is aimed at eliminating blighting conditions, including
deterioration, defective design, substandard design, lack of parking, high vacancies, and small lot
sizes. In addition, rehabilitation and modernizing of the building stock in this area would reverse
economic blighting conditions, including declining property values and sales tax revenues, in
order to enhance the economic viability of commercial properties. The Business Expansion and
Rosenow Spevac~k Group,lnc.
Novemb~r,1999
E-l
Community Devdopmmt Commission
ofth~ City of San B~mardino
Draft Pr~iiminary Rqwrt
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Retention component would market the area, inviting prospective businesses to locate in the area
and assist existing businesses in remaining in this revitalized area.
PUBLIC INFRASTRUCTURE IMPROVEMENT PROGRAM
The Commission has identified a number of public improvement projects, which would eliminate
deficiencies in the existing infrastructure system. Through public investment in infrastructure
the Commission hopes to stimulate private sector activity in the Project Area. They generally
include street and alley reconstruction, as well as streetscape, signalization, drainage and flood
control improvements.
One proposed program would improve traffic circulation by widening the two major
thoroughfares, 40th Street and Sierra Way, and provide maintenance at regular intervals for the
majority of streets in the Project Area. Streetscape improvements would provide upgrades in the
lighting system, add disabled access ramps at intersections, and install landscaping in the right-
of-way. The Signalization Improvement program would interconnect traffic signals along 40th
Street for better traffic flow, and install new traffic signals at major intersections in the Project
Area.
Stonn drain improvements along Sepulveda and Mountain A venues would address stonn drain
inadequacies that may pose a potential flooding problem. Other projects may be needed to
efficiently accommodate stonn water flow throughout the Project Area. Existing sewers in the
Project Area are in need of replacement, rehabilitation, and upsizing of lines to efficiently
accommodate flow. For example, sewer system improvements are also needed along Sierra
Way.
The public improvements projects would upgrade the traffic circulation, allowing better access
for emergency vehicles, improved traffic flow for shoppers and residents in the Project Area.
Street lighting and other streetscape improvements would improve the overall appeal of the area
while also increasing the public's perception of safety as they shop in well-lit areas. Streetscape
improvements would improve the overall quality of the physical environment and encourage
private sector investment. Finally, drainage improvements would provide increased capacity and
increased service to the properties in the Project Area.
LOW AND MODERATE INCOME HOUSING PROGRAM
The Commission is required to set aside not less than 20 percent of the tax increment revenue
generated by the Project into a special Low and Moderate Income Housing Fund. These funds
are to be used to increase, improve and preserve the supply of low and moderate income housing
in the community.
The Commission's housing program may include one or more of the following components: I) a
residential rehabilitation loan program; 2) a residential rehabilitation grant program; 3) a
residential acquisition and rehabilitation program; 4) property acquisition assistance for qualified
Rosenow Spevacek Group, Inc.
November, 1999
E-2
Community Development Commission
of the City of San Bemtutlfno
Draft Prelimfnary Report
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homebuyers; 5) residential loan assistance; 6) assistance in the construction of new residential
dwelling units; imd 7) development of senior housing.
The Housing program will assist very low, low and moderate income persons in rehabilitating
their property and alleviating physical blighting conditions such as deterioration. In addition, the
Commission may provide affordable housing opportunities to prospective qualified homebuyers.
By implementing these and other projects to abate the blighting conditions affecting the Project
Area, the public sector will signal its confidence in the area and provide a catalyst for private
investment and reinvestment.
Rosenow Spntlc~k Group,lnc.
Novemb~" 1999
E-3
Community Ihvelopment Commission
of 1It~ City of Slut &"u",lino
Draft Pre1Jm/n1ll'y Report
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TABLE E-!
SAN BERNARDINO 40TH STREET REDEVELOPMENT PROJECT
PROPOSED PROJECTS AND
PUBLIC INFRASTRUCTURE IMPROVEMENTS
ECONONDC DEVELOPMENT PROJECTS
Cost in 1999 Dollars
Economic development programs are needed to improve the Project Area's economic base, and
these programs would facilitate the revitalization of blighted properties by using redevelopment
tools. Costs are in 1999 dollars. The Commission staff will pursue reuse, redevelopment, and
revitalization of nonconforming, vacant or underutilized properties through marketing of the
area, and encouragement of private sector investments. Potential projects include but are not
limited to:
I. Lucky Shopping Center Project: Expansion of the Lucky's located on Sierra Way.
This Project would include removal of several retail structures, as well as enlargement
and integration of the structures to the north into the existing market.
2. 40th Street Shopping Center Project: Envisions the western portion of the Center
redeveloped with a high-volume retail use and rehabilitation of the existing market.
Another aspect of the Economic Development Program is the implementation of a commercial
rehabilitation program. This program would provide assistance, in the forms of grants and/or
low interest loans, to businesses in the Project Area to encourage and assist in restoring,
modernizing, and improving commercial structures. The reinvestment in the business
community would include fa~ade improvements, rehabilitation of deteriorated buildings, and
signage upgrades.
To support the commercial and economic program, the Commission proposes a proactive
Business Expansion- and Retention Program that would encourage new businesses to locate
within the boundaries of the Project Area, and assist in the retention of existing businesses. This
investment in the business community may include expanded marketing of the area, advertising
the area to potential customers and clients, improvements to business facilities to meet the needs
of today, and other actions to stop sales tax leakage.
$10,000,000
Rosenow Spevtlcek Group,/nG
November, 1999
E-4
Community Development ComnrJssion
of the City of &m Benuudhro
Draft Preliminary Report
o
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PUBLIC IMPROVEMENTS PROGRAM
The Commission has identified a number of public improvement projects, which would eliminate
deficiencies in the existing infrastructure system. Through public investment in infrastructure
system improvements, the Commission hopes to stimulate private sector investment in the
Project Area. They generally include improvements to: I) traffic circulation (to improve traffic
flow, provide greater accessibility for emergency vehicles and eliminate safety hazards); 2)
streetscape; 3) signalization 4) storm drain and flood control and 5) sewers.
Traffic Circulation:
I. Widen 40th Street from Acre Lane to Electric Avenue in order to provide a curb-
to-curb distance of 72' and a right-of-way width of 100'. Includes right-of-way
acquisition.
$2,000,000
2. Widen 40th Street from Mountain View Avenue to Waterman Avenue to provide
a curb-to-curb distance of 72' and a right-of-way width of 100'. Includes right-of-
way acquisition.
$2,500,000
3. Slurry seal Mountain View Avenue, Genevieve Street, Lugo Avenue, Sepulveda
Avenue, Leroy Street, 41st Street, 42nd Street, 49th Street and unnamed alleys at
10 year intervals.
$250,000
4. Rehabilitate pavement on Sierra Way at 20-year intervals.
$300,000
5. Rehabilitate pavement on 40th Street at 20-year intervals.
$300,000
6. Rehabilitate pavement on Waterman Avenue at 20-year intervals.
$150,000
7. Rehabilitate pavement on Electric Avenue at 20-year intervals.
$100,000
8. Rehabilitate pavement on Mountain View Avenue, Genevieve Street, Lugo
Avenue, Sepulveda Avenue, Leroy Street, 41st Street, 42nd Street, 49th Street and
unnamed Alleys at 20-year intervals.
$500,000
Rosenow Spevauk GrOllp, Inc.
November, 1999
E-5
Comnumity ~/opm~nt Commission
ofth~ City of San Bemtudlno
Draft Pnlimlnary Report
o
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Streetscape Improvements:
1. Insta!l landscaping in Electric Avenue right-of-way of from 34th Street to 50th
Street.
$510,000
2. Upgrade street lighting system.
$200,000
3. Install new disabled access ramps and upgrade existing non-confonning ones at
intersections.
$50,000
Sipalizanon Improvements:
I. Upgrade traffic signal at intersection of Electric Avenue and 40th Street.
$100,000
2. Install new traffic signal at Watennan Avenue and 48th Street.
$150,000
3. Interconnect traffic signals along 40th Street between Kendall Drive and
Watennan Avenue.
$200,000
Storm Drain and Flood Control Improvements:
1. Comprehensive Stonn Drain Plan No. 7-B23 in Sepulveda Street and Sierra Way.
$2,290,000
2. Comprehensive Stonn Drain Plan No. 7-B22 in Mountain View Avenue.
$1,300,000
3. Comprehensive Stonn Drain Plan No. 7-DI in Mountain View Avenue and "H"
Street.
4. Comprehensive Stonn Drain Plan No. 7-B25 in Watennan Avenue.
$2,300,000
$1,600,000
Rost!1tow Spevacek Group, IIIe.
November, 1999
E-6
COmmulllty Development Cofll1llbsu1II
of the City of Stilt Bemtudlllo
DTIlft helimllltl'Y Report
o
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Sewer System Improvements:
1. Upgrade sewers in Sierra Way, 34th Street, "I" Street and "H" Street to remove
deficiencies identified in the 1982 Sewer Master Plan study by Currie
Engineering.
$1,500,000
Total $16,300,000
LOW AND MODERATE HOUSING PROGRAMS
The Commission is required to set aside not less than 20 percent of the tax increment revenue
generated by the Project into a special Low and Moderate Income Housing Fund. These funds
are to be used to increase, improve and preserve the supply of low and moderate income housing
in the community.
$11,000,000
Rosenow Spevacek Group,lnc.
November, J999
E-7
Community Development Commission
of the City of San Bemardlno
Drtift Prelimbtary Report
o
APPENDICES
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APPENDIX A
INFORMATION SOURCES
This analysis, and the assessment of the blighting conditions found within the Project Area, is
based upon the following:
I. A windshield survey of the properties within the Project Area conducted during May and
a follow-up survey during September of 1999 by RSG, redevelopment consultants to the
City.
2. Information and data contained in the report from National Decision Systems, a division
of the VNU Precision Marketing Group, Inc.
3.
0 4.
5.
Information and data contained in the Inland Empire Consultants, Inc., land lease analysis
of a site in the 40th Street Shopping Center, December 1997.
Information contained in the 108 Loan Application to the U.S. Department of Housing
and Urban Development for the 40th Street Shopping Center in November 1994.
Information contained in the appraisal report of a portion of the 40th Street Shopping
Center by Gottfried, Gamble & Associates, Inc., April 1996.
6. Retail sales data obtained from the State Board of Equalization, 1994 through 1997.
7. Retail sales data from MBIA MuniServices Company, 1993 through 1998.
8. Parcel ownership, sales, and secured assessed valuation data from MetroScan Information
Service, derived from the most recent assessment roll of the County of San Bernardino
Assessor's Office.
9. Crime statistics from State of California Department of Justice - Bureau of Criminal
Information and Analysis, Criminal Justice Statistics Center.
10. Information provided by the City of San Bernardino.
o
While RSG believes all information sources to be reliable, it is not responsible for the accuracy
of data provided by such sources.
o
APPENDIX B
PROJECT AREA PHOTOGRAPHS
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SUMMARY OF PHOTOGRAPHS
1.
2,3.
4,5,6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19,20.
21.
22.
23.
24.
25.
26,27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
Limited ingress/egress
Poor vehicle circulation
Vacant/boarded up buildings
Trash and debris
Graffiti
Trash container without closure
Outdoor storage, deteriorated fencing
Deteriorated eaves and roofing materials
Exposed wiring (birds nest in switch box)
Condemned residential unit
Faulty addition, deteriorated exterior building materials
Shopping Center with uneven grade creating parking deficiencies and traffic safety
issues.
Boarded up commercial building
Graffiti, deteriorated parking surface, no trash enclosure
Deteriorated roofmg and substandard exterior building materials, exposed wiring,
debris
Outdoor storage
Missing foundation, outdoor storage
Vacant residential unit, debris
Substandard exterior building materials, no trash enclosure
No off street parking or adequate unloading facilities
Deteriorated exterior building materials and roofmg
Deteriorated exterior building materials
Vacant commercial unit, broken windows, exposed wiring, deteriorated exterior
building materials
Outdoor production, substandard signage
Boarded up, vacant commercial building
Vacant commercial center
Inadequate loading
Deteriorated exterior building materials, obsolescence
Inadequate access
Exposed wiring, deteriorated roofing and building materials, outdoor storage and
production
Exposed wiring
Buckled foundation
Deteriorated exterior building materials, outdoor storage
Trash and debris
Vacant boarded up commercial building, exposed wiring
Vacant commercial unit, broken window
Vacant commercial units, inadequate drainage
Voids in exterior building materials, substandard exterior plumbing
(a)
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44.
45.
46.
47.
48.
49.
50.
Trash and debris, no trash enclosure
Inadequate loading/access
Exposed utilities
Deteriorated exterior building materials, exposed wiring
Deteriorated foundation
Exposed wiring
Faulty addition
F:\rs~St'\piClUnll'llwnmaryofphotol
(b)
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.~.
~.-t..,
.... '-i?'
.'"'
Photograph 1: APN: 0154-452-38
Photograph 2: APN: 0154-452-46
o
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.:.,--,,;.,.....
-' .~.
'.
','''''7'''''W",,,,,~,, ..~~,.. ~._,
d.-.\..c-~Sii. '~J'40'i'~ - 'i!~'""'nt-::t.....-
:~ ,;' ~., lO'. .~'u_ ,~_ ~ ~;:~\:~~-;.. ".....\~~~t,~
~" .. '..._-'~~ _,l~.".:.t'.,it':~~r~
-+ '''''''_..;'''""'-~''~~~~w~~;;;-~if'
;, '''.J.
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Photograph 3: APN: 0154-452-45
BARB~R l~.
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,,-
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Photograph 4: APN: 0154-462-13
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Photograph 5: APN: 0154-126-24
Photograph 6: APN: 0154-126-26
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. -
.. ," -"-:-';" _...- ~...#.'..'
Photograph 7: APN: 0154-126-10
-~.,.:::.....
_. .,~..--
.........
.-, ....-
~
;::~
-:
-'-
Photograph 8: APN: 0154-126-29
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-
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~.-: . -~. .;'ir;;~~~~E~t}
Photograph 9: APN: 0154-126-27
.. ~..~
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'-.- ~.~~-"-,,_.=--
~- '-- '-.-
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,.
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-,
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.-'-.;,. ~_..._,...~."
Photograph 10: APN: 0154-221-32
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Photograph 11: APN: 0154-222-18
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Photograph 12: APN: 0154-222-23
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I .. \. ~__:;: ::~_~~~:::: _ ~_
- ---..
- .
---.
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Photograph 13: APN: 0154-222-30
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Photograph 14: APN: 0154-252-09
Photograph 15: APN: 0154-462-02
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Photograph 16: APN: 0154-462-02
Photograph 17: APN: 0154-462-02
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,~.
"';~~'~}.:~~:l~~: ,.:~~"
....~.~_c.__.. ~.~.
Photograph 18: APN: 0154-261-04
Photograph 19: APN: 0271-061-01
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Photograph 20: APN: 0271-062-13
Photograph 21: APN: 0271-062-13
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Photograph 22: APN: 0154-253-15
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~ ~;:~~~
,,",'_"'d~"_.~
Photograph 23: APN: 0154-242-38
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~.-: ...........:-.,-=
,-.;.t' ., '"';~~~ - ~'''-::.:::;:::;;
-'~.:-.,.~...c... __..,...:1H>::
f,-, -,- ^-.....~. __ . ",,;
~;'~b~:;..........- ---..;;.~.~-:: in.
""'}a,~ ._~~__..~: __....
Photograph 24: APN: 0154-262-12
Photograph 25: APN: 0154-263-12
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--=-
------
--.-.--
~-=
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Photograph 26: APN: 0154-252-09
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE DRAFT
REDEVELOPMENT PLAN FOR THE 40TH STREET PROJECT AREA,
AND AUTHORIZING TRANSMITTAL OF THE PROPOSED
REDEVELOPMENT PLAN TO AFFECTED TAXING AGENCIES, AND
PERSONS AND ORGANIZATIONS WITHIN THE PROJECT AREA AND
SUBMITTAL TO THE PLANNING COMMISSION FOR REPORT AND
RECOMMENDATION
WHEREAS, the Community Development Commission of the City of San Bernardino
("Commission") has undertaken the required steps for the consideration of the adoption of the
draft Redevelopment Plan for the 40th Street Project Area; and
WHEREAS, the California Community Redevelopment Law (Health and Safety Code
Section 33000, et sea.) ("CRL"), provides in Section 33385(a) and 33386 that the Commission
shall consult with and obtain the advice of persons and organizations within the 40th Street
Project Area on the proposed Redevelopment Plan prior to its submittal to the City Council; and
WHEREAS, the CRL provides in Section 33328 that prior to the publication of the
notice of a joint Commission/City Council public hearing on the proposed Redevelopment Plan
for the 40th Street Project Area ("Redevelopment Plan"), the Commission shall consult with
each affected taxing agency with respect to the proposed Redevelopment Plan; and
WHEREAS, the CRL further provides in Section 33356 that prior to a joint public
hearing on the proposed Redevelopment Plan, the Commission shall submit the proposed
Redevelopment Plan to the Planning Commission for its report and recommendation.
24
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO, CALIFORNIA, DOES HEREBY RESOLVE AS
FOLLOWS:
25
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YIP
I
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7
8
RESOLUTION OF THE COMMUNITY DEVEWPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE DRAFI'
REDEVELOPMENT PLAN FOR THE 40m STREET PROJECT AREA,
AND AUTHORIZING TRANSMITTAL OF THE PROPOSED
REDEVEWPMENT PLAN TO AFFECTED TAXING AGENCIES, AND
PERSONS AND ORGANIZATIONS WITHIN THE PROJECT AREA AND
SUBMITTAL TO THE PLANNING COMMISSION FOR REPORT AND
RECOMMENDATION
Section 1.
The Community Development Commission approves and adopts the Draft
Redevelopment Plan pursuant to Section 33352 of the CRL for the 40th Street Project Area
attached hereto as Attachment A and incorporated herein by reference as the Draft Redevelopment
Plan for the 40th Street Project Area.
9
10
Section 2.
The Community Development Commission directs that the proposed
Redevelopment Plan be transmitted to each affected taxing agency for purposes of consultations.
11
Commission staff is authorized and directed to consult with the affected taxing agencies with
12
respect to the proposed redevelopment plan and the allocation of taxes pursuant to CRL Section
13
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0 2
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5
6
7
18
19
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25
26 By:
27
0 28
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING THE DRAFT
REDEVELOPMENT PLAN FOR THE 40TH STREET PROJECT AREA,
AND AUTHORIZING TRANSMITTAL OF THE PROPOSED
REDEVELOPMENT PLAN TO AFFECTED TAXING AGENCIES, AND
PERSONS AND ORGANIZATIONS WITHIN THE PROJECT AREA AND
SUBMITTAL TO THE PLANNING COMMISSION FOR REPORT AND
RECOMMENDATION
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a
meetin
, 1999, by the following vote, to wit
NAYS ABSTAIN ABSENT
Secretary
The foregoing Resolution is hereby approved this
day of
,1999.
JUDITH VALLES, Chairperson
Community Development Commission
of the City of San Bernardino
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DRAFT
REDEVELOPMENT PLAN
FOR THE
40TH STREET REDEVELOPMENT PROJECT
Adopted:
, 1999
by Ordinance No. _
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Prepared for:
The Econornic Development Agency and
The City of San Bernardino
201 North E Street, Suite 301
San Bernardino, California 92401-1507
(909) 384-5081
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Prepared by:
o
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, California 92705
714/541-4585
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TABLE OF CONTENTS
SECTION I.
(100)
INTRODUCTION..........................................................................1
A. General..............................................................................................................1
SECTION II. (200)
SECTION III. (300)
SECTION IV. (400)
SECTION V. (500)
GENERAL DEFINITIONS ..........................................................1
PROJECT AREA BOUNDARlES...............................................3
REDEVELOPMENT PLAN GOALS..........................................3
REDEVELOPMENT ACTIONS .................................................4
A.
B.
C.
D.
E.
F.
G.
H.
1.
Generai..............................................................................................................4
Property Acquisition.........................................................................................6
Participation by Owners and Persons Engaged in Business.............................7
Implementing Rules..........................................................................................8
Cooperation with Public Bodies .......................................................................9
Property Management.......................................................................................9
Payments to Taxing Agencies ..........................................................................9
Relocation of Persons Displaced by a Project ................................................10
Demolition, Clearance, Public Improvements, Site
Preparation and Removal of Hazardous Waste ..............................................10
Rehabilitation, Moving of Structures by the Commission
and Seismic Repair .........................................................................................12
Property Disposition and Development..........................................................13
Provision for Low and Moderate Income Housing ........................................16
1.
K.
1.
SECTION VI. (600)
USES PERMITTED IN THE PROJECT AREA .....................20
A. Map and Uses Permitted .................................................................................20
B. ,Major Land Uses.............................................................................................20
C. Public Uses .....................................................................................................21
D. Conforming Properties....................................................................................22
E. Nonconforming Uses ......................................................................................22
F. Interim Uses....................................................................................................22
G. General Controls and Limitations...................................................................22
H. Design for Development.................................................................................25
1. Building Permits. ..................... ............ ............................ ............................ ...26
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SECTION VII. (700)
METHODS FOR FINANCING THE PROJECT ....................26
A.
B.
C.
D.
E.
General Description of the Proposed Financing Methods..............................26
Tax Increment Revenue ..................................................................................27
Commission Bonds.........................................................................................28
Other Loans and Grants ..................................................................................28
Rehabilitation Loans, Grants and Rebates......................................................29
SECTION VIII. (800)
SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT.........................30
ACTIONS BY THE CITY ..........................................................29
SECTION X. (1000) PLAN LIMITATIONS ................................................................30
A. Effectiveness of the Plan.................................................................................30
B. Limitation on Incurring Debt..........................................................................31
C. Limitation on Receipt of Tax Increment and Payment of Indebtedness.........3I
D. Limitation on the Amount of Bonded Indebtedness.......................................31
SECTION XI
(1100) PROCEDURE FOR AMENDMENT .........................................32
Exhibit A:
Exhibit B:
Exhibit C:
Project Area Map
Legal Description
. Public Facilities and Infrastructure Improvements Projects
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EXHmIT A
PROJECT AREA MAP
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CITY OF SAN BERNARDINO
Proposed 40th street Redevelopment Area
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AITACHMENT A
DRAFT REDEVELOPMENT PLAN
FOR THE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO
40TH STREET REDEVELOPMENT PROJECT
SECTION I. (100) INTRODUCTION
A. (10 1) General
This is the Redevelopment Plan for the 40th Street Redevelopment Project Area
("Plan") located in the City of San Bernardino, County of San Bernardino, State
of California. It consists of the text (Sections 100 through 1100), the Project Area
Map of the 40th Street Redevelopment Project Area ("Project Area") (Exhibit A),
the legal description of the Project Area boundaries (Exhibit B), and a listing of
the proposed projects, public facilities, and infrastructure improvement projects
(Exhibit C).
This Plan has been prepared by the Community Development Commission of the
City of San Bernardino ("Commission") pursuant to the California Community
Redevelopment Law (Health and Safety Code Section 33000, et sea.), 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 the Project Area; instead, it establishes a process and framework within
which specific development plans wiIl be presented, priorities for specific projects
wiIl be established, and specific solutions wilI be proposed and by which tools are
provided to the Commission to fashion, develop and proceed with such specific
plans, projects and solutions. This Plan is based upon the Preliminary Plan
formulated and adopted by the Community Development Commission of the City
of San Bernardino ("Commission") on September 20, 1999.
SECTION II. (200) GENERAL DEFINITIONS
The folIowing definitions wilI be used generally in the context of this Plan unless
otherwise specified herein:
A. "Commission" means the Community Development Commission of the
City of San Bernardino.
B. "Commission Board" means the governing body of the Commission.
f:\RSG\SANBERDO\4OtbStRPA\REDPLANsb.OOC
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C. "Adopting Ordinance" means Ordinance No. adopted by the City
Council on , 1999, adopting this Plan for the 40th Street
Redevelopment Project Area.
D. "City" means the City of San Bernardino, California.
E. "City Council" means the legislative body of the City.
F. "County" means the County of San Bernardino, California.
G. "Disposition and Development Agreement" means an agreement between
a developer and the Commission that sets forth terms and conditions for
improvement and redevelopment.
H. "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.
I. "Map" means the Map of the Project Area attached hereto as Exhibit A.
J.
"Method of Relocation" means the methods or plans adopted by the
Commission pursuant to Sections 33352(f) and 33411 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 Commission.
K. "Owner Participation Agreement" means an agreement between the
Commission and a property owner or tenant that sets forth terms and
conditions for improvement and redevelopment.
1. "Owner Participation Rules" means the Rules Governing Participation and
Reentry Preferences by Property Owners, Operators of Businesses, and
Business Tenants for the 40th Street Redevelopment Project Area.
M. "Person" means an individual(s), or any public or private entities.
N. "Plan" means the Redevelopment Plan for the 40th Street Redevelopment
Project Area.
O. "Project" means the 40th Street Redevelopment Project Area.
P. "Project Area" means the 40th Street Redevelopment Project Area, which
is the territory this Plan applies to, as shown on Exhibit A.
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Q. "Redevelopment Law" means the California Community Redevelopment
Law (Health and Safety Code, Sections 33000, et seQ.).
R. "State" means the State of California
SECTION III. (300) PROJECT AREA BOUNDARIES
The boundaries of the Project Area are illustrated on the map attached hereto and
incorporated herein as Exhibit A. The legal description of the boundaries of the Project
Area is as described in Exhibit B attached hereto and incorporated herein.
SECTION IV. (400) REDEVELOPMENT PLAN GOALS
Implementation of this Plan is intended to achieve the following goals:
I. Implement the policies, goals, objectives and strategies as
presented in the General Plan for the City of San Bernardino.
2. 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, office, and residential
development.
3. Provide opportunities for retail and other non-residential
commercial and office uses.
4. Promote the economic development of the Project Area by
providing an attractive, well-serviced, well-protected environment
for all residents and visitors.
5. Improve public facilities and public infrastructure to provide
adequate infrastructure facilities and public services.
6. Promote local job opportunities in the community.
7. Encourage the cooperation and participation of residents,
businesses, business persons, public agencies, and community
organizations in the economic revitalization of the Project Area.
8. Implement design and use standards to assure high aesthetic and
environmental quality, and provide unity and integrity to
developments within the Project Area.
F:\RSG\SANB~StRPA\AEDPLAN..DOC'
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9. Provide and regulate the provision of the supply of parking to meet
. the needs of both residents and commercial businesses.
10. - Remove impediments to land disposition and development through
the assembly of property into reasonably sized and shaped parcels
served by improved infrastructure and public facilities.
11. Recycle and/or develop underutilized parcels to accommodate
higher and better economic uses while enhancing the City's
fmancial resources.
12. Increase home ownership in the residential portion of the Project
Area.
13. Increase, improve, and preserve the supply of housing, especially
housing affordable to very low, low and moderate-income
households.
SECTION V. (SOD) REDEVELOPMENT ACTIONS
A.
(501) General
The Commission proposes to eliminate and prevent the recurrence of blight, and
improve the economic base of the Project Area by:
"
1. 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.
2. Rehabilitating, altering, remodeling, improving, modernizing,
clearing, or reconstructing buildings, structures and improvements.
3. Rehabilitating, preserving, developing or constructing affordable
housing in compliance with State law.
4. Providing the opportunity for owners and tenants presently located
in the Project Area to participate in redevelopment projects and
programs, and extending preferences to occupants to remain or
relocate within the redeveloped Project Area
5. Providing relocation assistance to displaced residential and
nonresidential occupants, if necessary.
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6. Facilitating the development or redevelopment ofIand for purposes
and uses consistent with this Plan.
7. Acquiring real property by purchase, lease, gift, grant, request,
devise or any other lawful means (including eminent domain), 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.
10. Providing assistance for first-time homebuyers, housing
rehabilitation, and multiple-family rental property rehabilitation
programs.
II. Managing property owned or acquired by the Commission.
12. Assisting in procuring fInancing for the construction of residential,
commercial, and office buildings to increase the residential and
commercial base of the Project Area, and the number of temporary
and permanent jobs in the City.
13. Disposing of property including, without limitation, the lease or
sale of land at a value determined by the Commission for reuse in
accordance with this Plan.
14. Establishing controls, restrictions or covenants running with the
land, so that property wilI continue to be used in accordance with
this Plan.
15. Vacating or abandoning streets, alleys, and other thoroughfares, as
necessary, and dedicating other areas for public purposes
consistent with the objectives of this Plan.
16. Providing replacement housing, if any is required.
17. Applying for and utilizing grants, loans and any other assistance
from federal or State governments, or other sources.
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18. Taking actions the Commission detennines 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.
19. Taking actions the Commission 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
the Project Area or to remove hazardous waste from property.
20. From time to time preparing and carrying out plans for the
improvement, rehabilitation, and redevelopment of blighted areas,
disseminating redevelopment information and creating a variety of
economic development programs which will help build a stronger
economic base within the Project Area. A Commission program
may consist of assisting businesses with the following: advertising
in brochures, promoting trade fairs, creating displays, developing
videos, and any other appropriate media which will attract other
businesses and consumers to the area. The Commission may also
assist with job training programs, moving expenses, and providing
other incentives to attract industrial type businesses to the area
such as tax credits.
21. Assisting businesses in the Project Area with facade improvements
and general rehabilitation by providing loans and grants.
To accomplish these actions and to implement this Plan, the Commission is
authorized to use the powers provided in this Plan, and the pOwers now or
hereafter permitted by the Redevelopment Law and any other State law.
B. (502) Property Acquisition
I. (503) Acquisition of Real Property
The Commission 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 eminent domain.
To the extent required by law, the Commission shall not acquire real
property on which an existing building is to be continued on its present
site and in its present form and use without the consent of the owner,
unless: (1) such building requires structural alteration, improvement,
modernization or rehabilitation; or (2) the site or lot on which the building
F:\RSG\SANBERDO\4OdJStRPA\REDPLANIb.DOC
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is situated requires modification in size, shape or use; or (3) it is necessary
to impose upon such property any of the standards, restrictions and
controls of this Plan and the owner fails or refuses to participate in the
Plan by executing an Owner Participation Agreement.
Except as otherwise provided herein, or otherwise provided by law, no
eminent domain proceeding to acquire property within the Project Area
shall be commenced after twelve (12) years following the effective date of
adoption of the Adopting Ordinance. Such time limitation may be
extended only by amendment of this Plan.
2. (504) ACQuisition of Personal Property
Where necessary in the implementation of this Plan, the Commission is
authorized to acquire personal property in the Project Area by any lawful
means.
C. (505) Participation by Owners and Persons Engaged in Business
I.
(506) Owner Participation
This Plan provides for participation in the redevelopment of property in
the Project Area by the owners of all or part of such property if the owners
agree to participate in the redevelopment in conformity with this Plan.
Opportunities to participate in the redevelopment of property in the Project
Area may include without Iirnitation 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 Commission; purchasing or leasing properties in the
Project Area; 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 Plan and with the Commission's rules
governing owner participation and re-entry.
In addition to opportunities for participation by individual persons and
firms, 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.
The Commission 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 utilities or facilities; elimination and
changing of land uses; realignment of streets; the ability of the
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Commission and/or owners and business tenants to fInance acquisition and
development activities in accordance with this Plan; and whether the
proposed activities conform to and further the goals and objectives of this
Plan.
2.
(507) Reentry Preferences for Persons EIllZae;ed in Business in the
Proiect Area
The Commission shall extend reasonable preferences to persons who are
engaged in business in the Project Area to relocate and reenter in business
in the redeveloped area, if they otherwise meet the requirements prescribed
by this Plan and the Commission's rules governing owner participation and
re-entry.
3. (508) Owner Participation Ae;reements
Under an Owner Participation Agreement, the participant shall agree to
rehabilitate, develop, or use the property in conformance with this Plan
and be subject to the provisions hereof. Pursuant to the Owner
Participation Agreement, participants who retain real property shall be
required to join in the recordation of such documents as are necessary to
make the provisions of this Plan applicable to their properties.
In the event a participant breaches the terms of an Owner Participation
Agreement, the Commission may declare the Agreement terminated and
may acquire the real property or any interest therein, and may sell or lease
such real property or interest therein for rehabilitation or development in
accordance with this Plan. If conflicts develop between the desires of
participants for particular sites or land uses, the Commission is authorized
to establish reasonable priorities and preferences among the owners and
tenants.
Where the Commission determines that a proposal for participation is not
feasible, is not in the best interests of the Commission or City, or that
redevelopment can best be accomplished without affording a participant
an . opportunity to execute an Owner Participation Agreement, the
Commission shall not be required to execute such an agreement.
D.
(509) ImplementinR Rules
The provisions of Sections 505-508 of this Plan shall be implemented according
to the Owner Participation Rules adopted by the Commission prior to the adoption
of the Adopting Ordinance, which may be amended from time to time by the
Commission. Such Owner Participation Rules allow for Owner Participation
Agreements with the Commission.
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F.
G.
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 Plan. The Commission shall seek the aid and cooperation of such public
bodies and shall attempt to coordinate the implementation of this Plan with the
activities of such public bodies in order to accomplish the purposes of
redevelopment and to achieve the highest public good.
The Commission is authorized to acquire real property devoted to public use, but
property of' a public body shall not be acquired without its consent. The
Commission shall seek the cooperation of all public bodies, which own or intend
to acquire property in the Project Area. Any public body that owns or leases
property in the Project Area will be afforded all the privileges of owner and
business tenant participation if such public body is willing to enter into an Owner
Participation Agreement with the Commission. All plans for development of
property in the Project Area by a public body shall be subject to Commission
approval.
The Commission may impose on all public bodies the planning and design
controls contained in and authorized by this Plan to ensure that present uses and
any future development by public bodies will conform to the requirements of this
Plan. The Commission 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 the
Project Area) where such land, buildings, facilities, structures, or other
improvements are of benefit to the Project Area.
(511) Property Mana2ement
During such time as property, if any, in the Project Area is owned by the
Commission, such property shall be under the management and control of the
Commission. Such properties may be rented or leased by the Commission
pending' their disposition.
(512) Payments to Taxin2 A2encies
The Commission may pay, but is not required to pay, in any year during which it
owns property in the Project Area 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.
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The Commission will also be required to make statutory pass-through payments
to affected taxing entities in accordance with Redevelopment Law.
H.
(513) Relocation of Persons Displaced bv a Proiect
I.
(514) Relocation Program
In accordance with the provisions of the California Relocation Assistance
Law (Govemment Code Section 7260, et seQ.), 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 Commission, the Commission shall provide relocation
benefits and assistance to all persons (including families, business
concerns and others) displaced by Commission acquisition of property in
the Project Area 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 Commission will assist displaced households in finding
decent, safe and sanitary housing within their financial means and
otherwise suitable to their needs. The Commission shall make a
reasonable effort to relocate displaced individuals, families, and
commercial and professional establishments within the Project Area The
Commission is also authorized to provide relocation for displaced persons
outside the Project Area.
2.
(515) Relocation Benefits and Assistance
The Commission shall provide all relocation benefits required by law and
in conformance with the Method of Relocation, Relocation Guidelines,
Relocation Assistance Act, the Redevelopment Law, and any other
applicable rules and regulations.
I. (516) Demolition. Clearance. Public Improvements. Site Preparation and
RemoVal of Hazardous Waste
I. (517) Demolition and Clearance
The Commission is authorized, for property acquired by the Commission
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 Plan.
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3.
2.
(518) Public Improvements
To the extent permitted by law, the Commission is authorized to install
and construct or to cause to be installed and constructed the public
improvements and public utilities (within or outside the Project Area)
necessary to carry out the purposes of this 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; water distribution systems; parks; plazas; playgrounds;
motor vehicle parking facilities; landscaped areas; schools; libraries; civic,
cultural, and recreational facilities; pedestrian improvements, or other
improvements allowed by Redevelopment Law. All utility improvements
will be completed pursuant to Chapters 12.40 and 12.44 of the San
Bernardino Municipal Code. A list of proposed public facilities and
infrastructure improvement projects is included in the project list set forth
in Exhibit C and incorporated herein by reference.
The Commission, as it deems necessary to carry out the Plan and subject
to the consent of the City Council, may pay all or part of the value of the
land for and the cost of the installation and construction of any building
allowed by Redevelopment Law, facility, structure or other improvement
which is publicly owned either within or outside the Project Area, upon
both the Commission Board and the City 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 Commission 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 Commission under such contract shall constitute an indebtedness of
the Commission for the purposes of carrying out this Plan.
(519) Preparation of Building Sites
The Commission 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
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other public improvements necessary for carrying out this Plan in the
Project Area.
4.
(520) Removal of Hazardous Waste
To the extent legally allowable, the Commission may take any actions that
the Commission 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 the Project Area.
J. (521) Rehabilitation, Moving of Structures bv the Commission and Seismic
Repairs
1.
(522) Rehabilitation and Conservation
The Commission is authorized to rehabilitate and conserve, or to cause to
be rehabilitated and conserved, any property, building or structure in the
Project Area owned by the Commission. The Commission 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 the Project Area not owned by the Commission to the extent
perniitted by the Redevelopment Law. The Commission is authorized to
acquire, restore, rehabilitate, move and conserve buildings of historic or
architectural significance.
It shall be the purpose of this Plan to allow for the retention of as many
existing businesses as practicable and to enhance the economic life of
these businesses by a program of voluntary participation in their
conservation and rehabilitation. The Commission is authorized to conduct
a program of assistance and enforcement to encourage owners of property
within the Project Area to upgrade and maintain their property consistent
with this Plan and such standards as may be developed for the Project
Area
The extent of rehabilitation in the Project Area shall be subject to the
discretion of the Commission based upon such objective factors as:
a. Compatibility of rehabilitation with land uses as
provided for in this Plan.
b. Economic feasibility of proposed rehabilitation and
conservation activity.
c.
Structural feasibility of proposed rehabilitation and
conservational activity.
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d.
The undertaking of rehabilitation and conservation
activities in an expeditious manner and in
conformance with the requirements of this Plan and
such property rehabilitation standards as may be
adopted by the Commission.
e. The need for expansion of public improvements,
facilities and utilities.
f. The assembly and development of properties In
accordance with this Plan.
The Commission may adopt property rehabilitation standards for the
rehabilitation of properties in the Project Area.
2. (523) MovinlZ of Structures
As necessary in carrying out this Plan, the Commission is authorized to
move, or to cause to be moved, any building, structures or other
improvements from any real property acquired which can be relocated to a
location within or outside the Project Area, and rehabilitated.
3.
(524) Seismic Repairs
For any project undertaken by the Commission within the Project Area for
building rehabilitation or alteration in construction, the Commission may,
by following all applicable procedures which are consistent with local,
State, and federal law, take those actions which the Commission
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 Plan, the Commission 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 Commission is
authorized to dispose of real property by negotiated sale or lease
without public bidding. Except as otherwise permitted by law,
before any interest in property of the Commission acquired in
whole or in part, directIy or indirectly, with tax increment moneys
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is sold or leased for development pursuant to this Plan, such sale or
lease shall be first approved by the City Council after public
hearing.
Except as otherwise permitted by law, no real property acquired by
the Commission, in whole or in part, directly or indirectly, with tax
increment, or any interest therein, shall be sold or leased for
development pursuant to the 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 Commission in the Project Area shall be leased or sold, except
property conveyed by the Commission to the community or any
other public body. Any such lease or sale shall be conditioned on
the redevelopment and use of the property in conformity with the
Redevelopment Plan. Real property may be conveyed by the
Commission to the City, and where beneficial to the Project Area,
to any other public body without charge or for an amount less than
fair market value.
All purchasers or lessees of property from the Commission shall be
obligated to use the property for the purposes designated in this
Plan, to begin and complete improvement of such property within a
period of time which the Commission fixes as reasonable, and to
comply with other conditions which the Commission deems
necessary to carry out the purposes of this Plan.
During the period of redevelopment in the Project Area, the
Commission shall ensure that all provisions of this Plan, and other
documents formulated pursuant to this Plan, are being observed,
and that development of the Project Area is proceeding in
accordance with applicable development documents and time
schedules.
AII development, whether public or private, must conform to this
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.
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b.
(528) Purchase and Development Documents
To provide adequate safeguards to ensure that the provisions of
this Plan will be carried out and to prevent the recurrence of blight,
all real property sold, leased, or conveyed by the Commission, as
well as all property subject to Owner Participation Agreements,
shall be made subject to the provisions of this 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 Commission, such documents or portions
thereof shall be recorded in the office of the Recorder of the
County.
Leases, deeds, contracts, agreements, and declarations of
restrictions of the Commission may contain restrictions, covenants,
and covenants running with the land, rights of reversion by the
owner, or any other provisions necessary to carry out this Plan.
The Commission 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 Plan.
The Commission shall obligate purchasers and lessees 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, or marital status in the sale,
lease, sublease, transfer, use occupancy, tenure or enjoyment of
property in the Project Area. 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, or contracts for the sale, lease, sublease or other
transfer of land in the Project Area shall contain such
nondiscrimination and non-segregation clauses as are required by
law.
2.
(529) Personal Prooerty DiSDOsition
For the purposes of this Plan, the Commission is authorized to sell, lease,
exchange, subdivide, transfer, assign, pledge, encumber, or otherwise
dispose of personal property.
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1. (530) Provision for Low and Moderate Income Housinl!
1.
(531) Definition ofTerms
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, or may hereafter be amended,
and other State and local laws and regulations pertaining thereto.
2. (532) Authority Generally
The Commission may, inside or outside the Project Area: 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
oflow or moderate income.
3.
(533) Replacement Housinl!
Except as otherwise permitted by law, whenever dwelling units housing
persons and families of low or moderate income are destroyed or removed
from the low and moderate income housing market as part of a
redevelopment project, the Commission shall, within 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 Commission. Except as otherwise permitted
by law, seventy-five percent (75%) of the replacement dwelling units shall
replace dwelling units available at affordable housing costs in the same
income level of very low income households, lower income households,
and persons and families of low and moderate income as the persons
displaced from those units destroyed. The Commission may replace
destroyed or removed dwelling units housing persons and families of low
or moderate income with a fewer number of replacement dwelling units if
the replacement dwelling units have a greater or equal number of
bedrooms and are affordable to the same income level of households as the
destroyed or removed units to the extent permissible by law as it now
exists or may hereafter be amended.
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5.
4.
(534) New or Rehabilitated DwellinlZ Units Developed Within the
Proiect Area
Unless otherwise permitted by law, at least thirty percent (30%) of all new
and substantially rehabilitated dwelling units developed by the
Commission 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 the Project Area by public or private entities or
persons other than the Commission 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 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, the
Commission shall prepare and adopt a plan to comply with the
requirements set forth above, for the Project Area. The 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 plan shall be
reviewed and, if necessary, amended at least every five (5) years in
conjunction with the housing element cycle. Unless otherwise permitted
by law, the plan shall ensure that the requirements of this section are met
every ten (10) years.
Except as otherwise permitted by law, the Commission shall require, by
contract or other appropriate means, that whenever any low and moderate
income housing units are developed within the Project Area, 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; provided, however, that failure to give such
priority shall not affect the validity of title to the real property upon which
such housing units have been developed.
(535) Duration of DwellinlZ Unit Availability
Unless otherwise permitted by law, the Commission shall require the
aggregate number of dwelling units rehabilitated, developed or. constructed
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pursuant to Sections 533 and 534 of this 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
Commission, but for not less than the period of the residential land use
controls established in Section X of this Plan.
6.
(536) Relocation Housine:
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 Commission 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 the Project Area.
7.
(537) Increased and Improved Supply
Except as otherwise permitted by law, not less than twenty percent (20%)
of all taxes which are allocated to the Commission pursuant to subdivision
(b) of Section 33670 of the Redevelopment Law and Section 702(2) and
(3) of this Plan shall be used by the Commission 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 Plan, the Commission may
exercise any or all of its powers including, but not limited to, the
following:
1. Acquire real property or building sites subject to Section
33334.16 of the Redevelopment Law.
2..
Improve real property or building sites with on-site or off-
site improvements, but only if either (A) the improvements
are made as part of a program which results in the new
construction or rehabilitation of affordable housing units
for low- or moderate-income persons that are directly
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benefited by the improvements or (B) the agency finds that
the improvements are necessary to eliminate a specific
condition that jeopardizes the health or safety of existing
low- or moderate-income residents.
3.
Donate real property to private or public persons or entities.
4.
Finance insurance premiums pursuant to Section 33136 of
the Redevelopment Law.
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 defmed 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 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 Commission may use these funds to meet, in whole or in part, the
replacement housing provisions in Section 533 of this Plan. These funds may be
used inside or outside the Project Area; however, these funds may be used outside
the Project Area only if findings of benefit to the Project Area are made pursuant
to the Redevelopment Law.
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8.
(538) Duration of Affordabilitv
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 Commission 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. Fifteen years for rental units. However, the Commission 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. Ten years for owner-occupied units. However, the Commission may
permit sales of owner-occupied units prior to the expiration of the
10-year period for a price in excess of that otherwise permitted
under this subdivision pursuant to an adopted program that protects
the Commission's investment of moneys from the Low and
Moderate Income Housing Fund.
SECTION VI. (600) USES PERMITTED IN THE PROJECT AREA
A. (601) Map and Uses Permitted
Pursuant to Section 33333 of the Redevelopment Law, the Map, attached hereto
as Exhibit A and incorporated herein, illustrates the location of the Project Area
boundaries, the immediately adjacent streets, and existing public rights-of-way.
The land uses permitted by this Plan shall be those permitted by the General Plan
and City zoning ordinances as they now exist or may hereafter be amended.
B. (602) Maior Land Uses (as now provided in the General Plan)
Major land uses permitted within the Project Area shall include: Commercial
(General and Office) and Low Density Residential (1-7 dwelling units/acre). The
areas shown on the plan maps may be used for any of the uses specified for or
permitted within such areas by the General Plan and zoning ordinances as they
exist or are hereafter amended in the future.
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C.
(603) Public Uses
1. (604) Public Street Lavout, RiRhts-of-Wav and Easements
Pursuant to Section 33333(a) of the Redevelopment Law, the public street
system for the Project Area is illustrated on the Project Area Map
identified as Exhibit A. The street system in the Project Area shall be
developed in accordance with the Circulation Element of the General Plan.
Primary streets in the Project Area include:
40th Street
Sierra Way
Waterman Avenue
Electric Avenue
Mountain View Avenue
Ralston Avenue
Sonora Drive
42nd Street
44th Street
49th Street
Certain streets and rights-of-way may be constructed, widened, altered,
abandoned, vacated, or closed by the City as necessary for proper
development of the Project Area Additional easements may be created by
the Commission and City in the Project Area 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 the Project Area, the
Commission 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; facilities for educational, fraternal,
philanthropic and charitable institutions; or other similar associations or
organizations allowed by Redevelopment Law. All such uses shall be
deemed to conform to the provisions of this Plan provided that such uses
conform with all other applicable laws and ordinances and that such uses
are approved by the City. The Commission may impose such other
reasonable restrictions as are necessary to protect development and uses in
the Project Area. Pursuant to Section 33333 (a) of the Redevelopment
Law, there is currently no open space in the Project Area and there are no
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specific plans as of the date of the Adopting Ordinance, for the provision
of open space, or property to be devoted to public purposes in the Project
Area. Pursuant to Section 33333 (d) of the Redevelopment Law, there is
no property designated by the General Plan as devoted to public purposes
within the Project Area.
D.
(606) Conforminll Properties
The Commission may, in its sole and absolute discretion, determine that certain
real properties within the Project Area meet the requirements of this Plan, and the
owners of such properties may be permitted to remain as owners of conforming
properties without an Owner Participation Agreement with the Commission,
provided such owners continue to operate, use, and maintain the real properties
within the requirements of this Plan. An owner of a conforming property may be
required by the Commission to enter into an Owner Participation Agreement with
the Commission in the event that such owner desires to (I) 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 the Project Area.
E.
(607) Nonconforminll Uses
The Commission 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 Plan, provided that such use is generally compatible with
existing and proposed developments and uses in the Project Area.
The Commission may, but is not required to, authorize additions, alterations,
repairs or other improvements in the Project Area for uses which do not conform
to the provisions of this Plan where, in the determination of the Commission, such
improvements would be compatible with surrounding Project Area uses and
proposed development.
F. (608) Interim Uses
G.
Pending the ultimate development of land by developers and participants, the
Commission is authorized to use or permit the use of any land in the Project Area
for interim uses not in conformity with the uses permitted in this Plan. Such
interim use, however, shall conform to all applicable sections of the City codes
other than permitted uses.
(609) General Controls and Limitations
Ail real property in the Project Area is hereby made subject to the controls and
requirements of this Plan. No real property shall be developed, redeveloped,
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rehabilitated, or otherwise changed after the date of the adoption of this Plan
except in conformance with the goals and provisions of this Plan and all
applicable City codes and ordinances. The land use controls of this Plan shall
apply for the periods set forth in Section X below. The type, size, height, number
and use of buildings within the Project Area will be controlled by the applicable
City planning and zoning ordinances as they now exist or may hereafter be
amended.
1. (610) New Construction
All construction in the Project Area 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
Project Area, additional specific performance and development standards
may be adopted by the Commission to control and direct improvement
activities in the Project Area.
2.
(611) Rehabilitation
Any existing structure within the Project Area which the Commission
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 ofDwellin~ Units
The total number of dwelling units in the Project Area shall be regulated
by the General Plan. As of the date of adoption of the Adopting
Ordinance, there are approximately 639 dwelling units in the Project Area.
Pursuant to Section 33333 (c) of the Redevelopment Law, portions of the
Project Area designated as residential uses in the General Plan are shown
graphically and by diagram in Exhibit A.
4. (613) Open Space and Landscapin~
The approximate amount of open space to be provided in the Project Area
is the total of all areas so designated 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 Plan. Landscaping shall be developed in the Project Area
to ensure optimum use of living plant material in conformance with the
standards of the City.
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5.
(614) Limitations on Type, Size, Heildtt, Number and PropOsed Use of
Buildings
Pursuant to Section 33333 (b) of the Redevelopment Law, the limits on
building type, size, height, and number, as well as proposed uses of
buildings shall be established in accordance with the provisions of the
General Plan and the zoning ordinances, as they now exist or are hereafter
amended. Diagram(s) and general descriptions of these limitations are
provided in the General Plan and the zoning ordinances.
6. (615) Signs
All signs shall conform 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 Commission for review and
approval pursuant to the Municipal Code of the City and procedures
permitted by this Plan. New signs must contribute to a reduction in sign
blight.
7. (616) Utilities
The "Commission 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 the
Project Area, except as otherwise permitted by the City.
9. (618) Subdivision of Parcels
No parcels in the Project Area, 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 Plan, the
Commission.
10. (619) MinorVariations
The Commission is authorized to permit minor variations from the limits,
restrictions and controls established by this Plan. In order to permit any
such variation, the Commission must determine all of the following:
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a. The application of certain provisions of this Plan would
result in practical difficulties or unnecessary hardships
inconsistent with the general purposes and intent of this 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 Plan.
No such variation shall be granted which permits other than a minor
departure from the provisions of this Plan. In permitting any such
variation, the Commission shall impose such conditions as are necessary
to protect the public health, safety, or welfare, and to assure compliance
with the purposes of this Plan.
H.
(620) Desi2l1 for Development
Within the limits, restrictions, and controls established in this Plan, and subject to
the provisions of Sections 601 and 609 herein, the Commission 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 the Project Area.
No new improvement shall be constructed, and no existing improvement shall be
substantially modified, altered, repaired, or rehabilitated except in accordance
with this Plan and any such controls approved by the Commission. In the case of
property, which is the subject of a Disposition and Development Agreement or an
Owner Participation Agreement with the Commission, such property shall be
developed in accordance with the provisions of such Agreement. One of the
objectives of this Plan is to create an attractive and pleasant environment in the
Project Area. Therefore, such plans shall give consideration to good design, open
space and other amenities to enhance the aesthetic quality of the Project Area.
The Commission shall not approve any plans that do not comply with this Plan
except as permitted by Section 619 of this Plan.
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A.
I.
(621) Buildin2 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 the Project Area from the date of adoption of this Plan must
be in conformance with the provisions of this Plan, any design for development
adopted by the Commission, any restrictions or controls established by resolution
of the Commission, and any applicable participation or other agreements.
The Commission is authorized to establish permit procedures and approvals
required for purposes of this Plan. A building permit shall be issued only after the
applicant for same has been granted all approvals required by the City and the
Commission at the time of application.
SECTION VII. (700) METHODS FOR FINANCING THE PROJECT
(701) General Description of the PropOsed Financin2 Methods
Upon adoption of this Plan by the City Council, the Commission is authorized to
fInance implementation of this Plan with assistance from local sources, the State
and/or the federal govemment, property tax increment, interest income,
Commission bonds, donations, loans from private fInancial institutions or any
other legally available source.
The Commission is also authorized to obtain advances, borrow funds, issue bonds
or other obligations, and create indebtedness in carrying out this Plan. The
principal and interest on such indebtedness may be paid from tax increment
revenue or any other funds available to the Commission. Advances and loans for
survey and planning and for the operating capital for administration of this 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
Commission, 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 Commission, City and/or other
public Commission providing such assistance.
The Commission may issue bonds or other obligations and expend their proceeds
to carry out this Plan. The Commission is authorized to issue bonds or other
obligations as appropriate and feasible in an amount sufficient to fInance all or
any part of Plan implementation activities. The Commission shall pay the
principal and interest on bonds or other obligations of the Commission as they
become due and payable.
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B.
(702) Tax Increment Revenue
All taxes levied upon taxable property within the Project Area 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 said
Taxing Agencies upon the total sum of the assessed value of the
taxable property in the Project Area 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 the
Adopting Ordinance, shall be allocated to and when collected shall
be paid to the respective Taxing Agencies as taxes by or for said
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 the Project Area 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 the
Project Area on said effective date).
2. That portion of said 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 Commission to pay the principal of and
interest on loans, monies advanced to, or indebtedness (whether
funded, refunded, assumed, or otherwise) incurred by the
Commission to finance or refinance in whole or in part, the
redevelopment project. Unless and until the total assessed
valuation of the taxable property in the Project Area exceeds the
total assessed value of the taxable property in the Project Area 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 the Project Area shall be paid to the
respective Taxing Agencies. When said loans, advances, and
indebtedness, if any, and interest thereon, have been paid, all
monies thereafter received from taxes upon the taxable property in
the Project Area shall be paid to the respective Taxing Agencies
as taxes on all other property are paid.
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5.
Provisions for administration/enforcement of this 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 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 Plan.
SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT
Upon adoption, the administration and enforcement of this Plan or other documents
implementing this Plan shall be performed by the City and/or the Commission, as
appropriate.
The provisions of-this Plan or other documents entered into pursuant to this Plan may
also be enforced by litigation or similar proceedings by either the Commission 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 the Project Area
may be enforced by such owners.
SECTION X. (1000) PLAN LIMITATIONS
A. (IDOl) Effectiveness of the Plan
Except for the non-discrimination and non-segregation provisions which shall run
in perpetuity, and except as otherwise provided herein, the provisions of this Plan
shall be effective, and the provisions of other documents formulated pursuant to
this Plan shall be effective for thirty (30) years from the effective date of adoption
of the Adopting Ordinance approving this Plan.
After the time limit on the effectiveness of the Plan has expired, the Commission
shall have no authority to act pursuant to the Plan except to pay previously
incurred indebtedness and to enforce existing covenants or contracts. However, if
the Commission has not completed its housing obligations pursuant to Section
33413 of the Redevelopment Law, the Commission shall retain its authority to
implement requirements under 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.
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D.
B.
(1002) Limitation on Incurrin~ Debt
The time limit 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 is
twenty (20) years from the date of adoption of the Adopting Ordinance approving
this Plan. This limit, however, shall not prevent the Commission from incurring
debt to be paid from the Low and Moderate Income Housing Fund or establishing
more debt in order to fulfill the Commission'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 Commission beyond this time limitation. This limit
shall not prevent the Commission 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.
Provided, however, that 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 ofIndebtedness
Except as otherwise provided herein, the limitation 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 is forty-five (45) years from
the date of adoption of the Adopting Ordinance approving this Plan.
(1004) Limitation on the Amount of Bonded Indebtedness
This 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. The
amount of bonded indebtedness which can be outstanding at one time and payable
in whole or in part from tax allocations attributable to the Project Area shall be
limited to $20 million adjusted annually in accordance with the Los Angeles-
Riverside-Orange County Consumer Price Index (CPI) for all urban consumers
(where 1982-84 equals 100), published by the Bureau of Labor Statistics of the
U.S. Department of Labor. In the event the CPI ceases to be published, an
acceptable replacement index shall be applied. 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, except that
proportion of the total bonded indebtedness which is attributable to being serviced
from tax allocations shall not at one time exceed such figure of $20 million
adjusted annually in accordance with the CPI.
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SECTION XI. (1100) PROCEDURE FOR AMENDMENT
This 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 Plan is to be liberally construed and not interpreted as a limitation on the powers of
the Commission. Notwithstanding any provision in this Plan to the contrary, the
Commission may hereby 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.
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EXHIBIT B
LEGAL DESCRIPTION
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CITY OF SAR BZRKlRDIBO
40TH STREZT REDEVIlLOPMBIIT PROJZCT AREA
LEGAL DESCRIPTION
BEING 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:
SUB-AREA 1
BEGINNING AT A POINT AT THE INTERSECTION OF THE CENTERLINE OF 44TH
STREET AND SEPULVEDA AVENUE, FORMERLY ARROWHEAD BOULEVARD, AS SHOWN
ON TRACT NO. 1834, AS RECORDED IN BOOK 26, PAGE 52, OF MAPS,
RECORDS OF SAN BERNARDINO COUNTY;
(1) THENCE SOUTHERLY ALONG SAID CENTERLINE OF SEPULVEDA BOULEVARD,
SOUTH, A DISTANCE OF 798.00 FEET, TO A POINT ON THE WESTERLY
PROLONGATION OF THE NORTHERLY LINE OF LOT 3 OF BLOCK 4 OF SAID
TRACT NO. 1834;
(2) THENCE EASTERLY ALONG SAID WESTERLY PROLONGATION AND NORTHERLY
LINE OF LOT 3, N89'43'00"E, A DISTANCE OF 170.00 FEET, TO THE
NORTHEASTERLY CORNER OF SAID LOT 3;
(3) THENCE SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT 3, SOUTH,
A DISTANCE OF 27.00 FEET, TO A POINT ON THE WESTERLY
PROLONGATION OF THE NORTHERLY LINE OF LOTS 14 THROUGH 21 OF
SAID BLOCK 4 OF TRACT 1834;
(4) THENCE EASTERLY ALONG SAID WESTERLY PROLONGATION, NORTHERLY
LINE AND ITS EASTERLY PROLONGATION, N89.43'00"E, A DISTANCE OF
1,067.12 FEET TO A POINT ON THE CENTERLINE OF WATERMAN AVENUE
AS SHOWN ON SAID TRACT NO. 1834;
(5) THENCE SOUTHERLY ALONG SAID CENTERLINE OF WATERMAN AVENUE,
SOO '19' OO"E A DISTANCE OF 897.33 FEET, TO A POINT ON THE
EASTERLY PROLONGATION OF THE NORTHERLY LINE OF LOT 52 OF TRACT
NO. 4506, AS RECORDED IN BOOK 59, PAGES 33 AND 34, OF MAPS,
RECORDS OF SAID COUNTY;
(6) THENCE WESTE:RLY ALONG SAID EASTERLY PROLONGATION AND NORTHERLY
LINE AND ITS WESTERLY PROLONGATION, S89'51'20"W, A DISTANCE OF
266.58 FEET, TO THE MOST NORTHWESTERLY CORNER OF LOT 53 OF
SAID TRACT NO. 4506;
(7) THENCE SOUTHWESTERLY ALONG THE NORTHWESTERLY LINE OF SAID LOT
53 AND ITS SOUTHWESTERLY PROLONGATION, S38'12'25"W, A DISTANCE
OF 130.78 FEET TO A POINT ON THE CENTERLINE OF SONORA DRIVE AS
SHOWN ON SAID TRACT NO. 4506;
THENCE NORTHWESTERLY, WESTERLY AND SOUTHWESTERLY ALONG SAID
CENTERLINE OF SONORA DRIVE ALONG THE FOLLOWING VARIOUS
COURSES:
(8) N51'47'35"N, A DISTANCE OF 200.00 FEET;
(9) . = 90.00'00", R .. 150.00 FEET, L = 235.62 FEET;
0 (10) S3S.12'2S"W, A DISTANCE OF 100.00 FEET;
(11) . = 05.43'10" , R = 3,397.39 FEET, L = 339.14 FEET;
(12) S43.SS'3S"W, A DISTANCE OF 45.00 FEET;
TO THE INTERSECTION OF THE CENTERLINE OF RALSTON AVENUE, AS
SHOWN ON SAID TRACT NO. 4506;
(13) THENCE NORTHWESTERLY ALONG SAID CENTERLINE OF RALSTON AVENUE,
N46.04'2S"W, A DISTANCE OF 45.00 FEET TO THE BEGINNING OF A
TANGENT CURVE, CONCAVE SOUTHERLY AND HAVING A RADIUS OF 460.64
FEET;
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(14) THENCE CONTINUING NORTHWESTERLY ALONG SAID CENTERLINE OF
RALSTON AVENUE AND CURVE THROUGH A CENTRAL ANGLE OF 43.35'50",
AN ARC DISTANCE OF 350.51 FEET;
(15) THENCE WESTERLY CONTINUING ALONG SAID CENTERLINE OF RALSTON
AVENUE NS9.40'lS"W, A DISTANCE OF 1,206.50 FEET, TO THE
INTERSECTION OF THE CENTERLINE OF MOUNTAIN VIEW AVENUE, AS
SHOWN ON TRACT NO. 20SS, RECORDED IN BOOK 30, PAGE 65 OF MAPS,
RECORDS OF SAID COUNTY;
(16) THENCE SOUTHERLY ALONG THE CENTERLINE OF SAID MOUNTAIN VIEW
AVENUE, SOO.30'OO"W, A DISTANCE OF 1,175.00 FEET TO THE POINT
ON THE EASTERLY RIGHT OF WAY LINE OF ELECTRIC AVENUE;
(17) THENCE NORTHERLY ALONG SAID EASTERLY RIGHT OF WAY LINE OF
ELECTRIC AVENUE, FOLLOWING ALL OF ITS VARIOUS COURSES TO THE
INTERSECTION OF THE CENTERLINE OF 40TH STREET;
(lS) THENCE EASTERLY ALONG SAID CENTERLINE OF 40TH STREET FOLLOWING
ALL OF ITS VARIOUS COURSES TO THE INTERSECTION OF THE
CENTERLINE OF MOUNTAIN VIEW AVENUE, AS SHOWN ON A PARCEL MAP
9521, AS RECORDED IN BOOK 106, PAGES 65-67 OF PARCEL MAPS,
RECORDS OF SAID COUNTY;
(19) THENCE NORTHERLY ALONG SAID CENTERLINE OF MOUNTAIN VIEW
AVENUE, NORTH, A DISTANCE OF 164.S2 FEET, TO A POINT ON THE
WESTERLY PROLONGATION OF THE NORTHERLY LINE OF PARCEL 1 OF
SAID PARCEL MAP 9521;
(20) THENCE EASTERLY ALONG SAID WESTERLY PROLONGATION AND NORTHERLY
LINE, SS9.S3'S7"E, A DISTANCE OF 150.20 FEET TO A POINT ON THE
WESTERLY LINE OF SAID PARCEL MAP 9521;
(21) THENCE NORTHERLY ALONG SAID WESTERLY LINE, NOO .12 ' 31 "W, A
DISTANCE OF 60. OS FEET TO AN ANGLE POINT;
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(22) THENCE EASTERLY ALONG THE WESTERLY LINE OF SAID PARCEL MAP
9521, NS9.SS'40"E, A DISTANCE OF 15.00 FEET TO AN ANGLE POINT;
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(23) THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID PARCEL MAP
9521 AND ITS NORTHERLY PROLONGATION, NOO.00'14"E, A DISTANCE
OF 1,123.88 FEET TO THE NORTHEASTERLY CORNER OF LOT 1 OF TRACT
NO. 3541, AS RECORDED IN BOOK 47, PAGE 4 OF MAPS, RECORDS OF
SAID COUNTY.
(24) THENCE EASTERLY ALONG THE EASTERLY PROLONGATION OF SAID LOT 1
AND THE CENTERLINE OF SAID 44TH STREET, S89.46'OO"E, A
DISTANCE OF 1,186.25 FEET, TO THE POINT OF BEGINNING.
SUB-AREA 2
BEGINNING AT A POINT AT THE INTERSECTION OF THE CENTERLINE OF LEROY
STREET AND 49TH STREET, AS SHOWN ON TRACT NO. 10940, AS RECORDED IN
BOOK 163, PAGES 42 THROUGH 44 OF MAPS, RECORDS OF SAID COUNTY.
(1) THENCE NORTHEASTERLY ALONG SAID CENTERLINE OF SIERRA WAY,
N49.09'OO"E, A DISTANCE OF 252.55 FEET, TO A POINT ON THE
WESTERLY PROLONGATION OF THE NORTHERLY LINE OF LOTS 1 THROUGH
8 OF BLOCK 20 OF TRACT NO. 1834, AS RECORDED IN BOOK 26, PAGE
52 OF MAPS, RECORDS OF SAID COUNTY.
(2) THENCE EASTERLY ALONG SAID WESTERLY PROLONGATION AND NORTHERLY
LINE AND ITS EASTERLY PROLONGATION, N89.43'OO"E, A DISTANCE OF
406.00 FEET TO A POINT ON THE CENTERLINE OF WATERMAN LANE, AS
SHOWN ON SAID TRACT NO. 1834.
(3) THENCE SOUTHERLY ALONG SAID CENTERLINE OF WATERMAN LANE
SOO.19'OO"E, A DISTANCE OF 230.00 FEET TO A POINT ON THE
EASTERLY PROLONGATION OF THE SOUTHERLY LINE OF LOTS 1 THROUGH
11 OF BLOCK 19 OF SAID TRACT NO. 1834.
(4) THENCE WESTERLY ALONG SAID EASTERLY PROLONGATION, SOUTHERLY
LINE AND ITS WESTERLY PROLONGATION, S89.43'OO"W, A DISTANCE OF
604.48 FEET, TO A POINT ON THE CENTERLINE OF SAID LEROY
STREET.
(5) THENCE NORTHERLY ALONG SAID CENTERLINE OF LEROY STREET, NORTH,
A DISTANCE OF 161.65 FEET, TO THE POINT OF BEGINNING.
NOTE: IT IS THE SOLE PURPOSE OF THIS LEGAL DESCRIPTION TO DEFINE
THE BOUNDARIES OF THE PROPOSED 40TH STREET REDEVELOPMENT PROJECT
AREA. THREFORE, THIS LEGAL DESCRIPTION MUST NOT BE MISCONSTRUED AS
A FIELD AND/OR OFFICE SURVEY OR ANALYSIS.
Doc: 99024RSG.LEG
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EXHmIT C
PROPOSED INFRASTRUCTURE IMPROVEMENT AND PUBLIC
FACILmES PROJECTS
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EXHIBIT C
Redevelopment Plan for the
40th Street Redevelopment Project
PROPOSED PUBLIC INFRASTRUCTURE IMPROVEMENTS
The Commission has identified a number of public improvement projects, which would
eliminate deficiencies in the existing infrastructure system. Through public investment in
infrastructure system improvements, the Commission hopes to stimulate private sector
investment in the Project Area. They generally include improvements to: I) traffic circulation
(to improve traffic flow, provide greater accessibility for emergency vehicles and eliminate
safety hazards); 2) streetscape; 3) signalization; 4) storm drain and flood control; and 5) sewers.
Traffic Circulation:
I. Widen 40th Street from Acre Lane to Electric Avenue in order to provide a curb-
to-curb distance of 72' and a right-of-way width of 100'. Includes right-of-way
acquisition.
2. Widen 40th Street from Mountain View Avenue to Waterman Avenue to provide a
curb-to-curb distance of 72' and a right-of-way width of 100'. Includes right-of-
way acquisition.
3. Slurry seal Mountain View Avenue, Genevieve Street, Lugo Avenue, Sepulveda
Avenue, Leroy Street, 41st Street, 42nd Street, 49th Street and unnamed alleys at
IO-year intervals.
4. Rehabilitate pavement on Sierra Way at 20-year intervals.
5. Rehabilitate pavement on 40th Street at 20-year intervals.
6. Rehabilitate pavement on Waterman Avenue at 20-year intervals.
7. Rehabilitate pavement on Electric A venue at 20-year intervals.
8. Rehabilitate pavement on Mountain View Avenue, Genevieve Street, Lugo
A venue, Sepulveda A venue, Leroy Street, 41st Street, 42nd Street, 49th Street and
unnamed Alleys at 20-year intervals.
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Streetscape Improvements:
1. Install landscaping in Electric Avenue right-of-way of from 34th Street to 50th
Street.
2. Upgrade street lighting system.
3. Install new disabled access ramps and upgrade existing non-conforming ones at
intersections.
Sipalization Improvements:
I. Upgrade traffic signal at intersection of Electric Avenue and 40th Street.
2. Install new traffic signal at Watennan Avenue and 48th Street.
3. Interconnect traffic signals along 40th Street between Kendall Drive and
Waterman Avenue.
Storm Drain and Flood Control Improvements:
I. Comprehensive Storm Drain Plan No. 7-B23 in Sepulveda Street and Sierra Way.
2. Comprehensive Storm Drain Plan No. 7-B22 in Mountain View Avenue.
3. Comprehensive Storm Drain Plan No. 7-01 in Mountain View Avenue and "H"
Street.
4. Comprehensive Storm Drain Plan No. 7-B25 in Waterman Avenue.
Sewer System Improvements:
1. Upgrade sewers in Sierra Way, 34th Street, "I" Street and "H" Street to remove
deficiencies identified in the 1982 Sewer Master Plan study by Currie
Engineering.
F:~tRDA\ExhibitCredpIa.doc
11124/99
02
3
014
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. .
RESOLUTION NO.
4
RESOLUTJON OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING DRAFT RULES
GOVERNING PARTICIPATION AND PREFERENCES BY PROPERTY
OWNERS, OPERATORS OF BUSINESSES, AND BUSINESS TENANTS
IN THE 40TH STREET REDEVELOPMENT PROJECT, AND DIRECTING
THAT SUCH RULES BE MADE AVAILABLE FOR PUBLIC
INSPECTION, REVIEW AND COMMENT
5
6
7
8 WHEREAS, Section 33000, et sea., of the Health and Safety Code, known as the
9 California Community Redevelopment Law ("CRL"), provides that the Community
10 Development Commission of the City of San Bemardino ("Commission") shall adopt rules to
11
implement the operation of business reentry preferences in connection with a redevelopment
12
plan; and
WHEREAS, -Section 33345 of the CRL provides that the Commission shall adopt and
13
make available for public inspection rules to implement the operation of owner participation in
connection with the Redevelopment Plan for the 40th Street Redevelopment Project.
16
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO, CALIFORNIA DOES HEREBY FIND, DETERMINE
17
18 AND RESOLVE AS FOLLOWS:
19
Section I.
The draft Rules Governing Participation and Preferences by Property
20 Owners, Operators of Businesses, and Business Tenants in the 40th Street Redevelopment
21 Project, attached as Exhibit A and by reference made a part hereof, are hereby approved.
22
Section 2.
The Executive Director of the Community Development Commission of
23 the City of San Bernardino shall make the draft Rules Governing Participation and Preferences
24 by Property Owners, Operators of Businesses and Business Tenants in the 40th Street
25 Redevelopment Project available for public inspection review and comment.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING DRAFT RULES
GOVERNING PARTICIPATION AND PREFERENCES BY PROPERTY
OWNERS, OPERATORS OF BUSINESS, AND BUSINESS TENANTS IN
THE 40m STREET REDEVELOPMENT PROJECT, AND DIRECTING
mAT SUCH RULES BE MADE AVAILABLE FOR PUBLIC INSPECTION,
REVIEW AND COMMENT
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a
meetin
thereof, held on the day of
COMMISSION MEMBERS: A YR<;
ESTRADA
, 1999, by the following vote, to wit
NAYS ABSTAIN ABSENT
10 UEN
II McGINNIS
12 SCHNETZ
I3 SUAREZ
14 ANDERSON
0 15 MILLER
16
17
18
19
20
21
22
23
24
25
26 By:
27
0 28
Secretary
The foregoing Resolution is hereby approved this
day of
.1999.
JUDITH VAT T ES, Chairperson
Community Development Commission
of the City of San Bernardino
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San Bernardino Commtmity Development Commission
Rules Governing PaI1icipation and
Reenby Prererences for Property
Ovvners, Operators of Businesses, and
Business Tenants
November, 1999
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, CA 92705
(714) 541-4585 Phone
(714) 836-1748 Fax
RSGINCCA@aol.com
o
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RULES GOVERNING PARTICIPATION AND
REENTRY PREFERENCES FOR PROPERTY OWNERS,
OPERATORS OF BUSINESSES, AND BUSINESS TENANTS
FOR THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO
REDEVELOPMENT PLAN FOR THE
40TH STREET REDEVELOPMENT PROJECT
SECTION I.
(100) INTRODUCTION
The California Community Redevelopment Law, Health and Safety Code Sections 33000, et
seQ., requires that the Community Development Commission of the City of San Bernardino
("Commission") establish and make known to property owners, business owners, and business
tenants within the 401b Street Redevelopment Project Area ("Project Area") the Commission's
Rules and guidelines for implementing "owner participation" opportunities in the Project Area,
which is subject to the Redevelopment Plan for the 40th Street Redevelopment Project ("Plan").
The Rules entitled "Governing Participation and Reentry Preferences for Property Owners,
Operators of Businesses, and Business Tenants for the Project Area" ("Rules"), are based upon
the following objectives:
1.
The Commission's commitment to afford reasonable rights of participation
in the redevelopment process to existing property owners, tenants and
persons who are engaged in business within the Project Area who will be
affected by the Commission's activities within the 401b Street Redevelopment
Project Area, and
2. The Commission's commitment to extend reasonable preferences to existing
property owners, tenants and persons who are engaged in business within
the Project Area, to participate in the redevelopment process in the Project
Area.
SECTION II. (200) GENERAL DEFINITIONS
The following definitions will be used generally in the context of these Rules Governing
Participation and Reentry Preferences for Property Owners, Operators of Businesses, and
Business Tenants, unless the context otherwise requires:
1. "City" means the City of San Bemardino."Commission" means the
Community Development Commission of the City of San Bernardino.
2. "CRL" means the California Community Redevelopment Law (Health and
Safety Code Sections 33000 et ~.), as it now exists or may hereafter be
lawfully amended.
Rosenow Spevacek Group, Inc.
November, 1999
1
COllllflllnity Development Commission oltlJe
City 01 San Bemtudbro
Owner Participation Rules
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3.
"Owner" shalI mean and include the owner of real property located in the
Project Area, or a tenant on property or the owner/operator of a business
located on property in the Project Area.
4. "Owner Participation Agreement" means an agreement entered into between
the Commission and an Owner in accordance with the provisions of the Plan
and the Rules as described herein which contains the specific responsibilities
and obligations of. each party regarding a specific implementation of
property improvements and land use.
5. "Plan" means the Redevelopment Plan for the 40th Street Redevelopment
Project.
6. "Project" or "Project Area" means the 40th Street Redevelopment Project.
7. "Rules" mean the "Rules Governing Participation and Reentry Preferences
for Property Owners, Operators of Businesses, and Business Tenants in the
40th Street Redevelopment Project", adopted by Commission Resolution
No.
AlI definitions set forth in the Plan shall be deemed applicable to these Rules.
SECTION III. (300) GENERAL
These Rules have been adopted by the Commission specifically to implement the provisions of
the Plan pursuant to the CRL regarding participation and the exercise of reentry preferences for
qualified Owners. Persons desiring to exercise participation rights and preferences shall do so
only in compliance with the Rules.
The Commission encourages all qualified Owners to become actively involved in the
improvement and the redevelopment within the Project Area. Therefore, the Commission has
developed these Rules to establish reasonable provisions for participation by qualified Owners to
continue in or reenter the Project Area if the Commission acquires the land of an Owner, subject
to the compliance with the Plan and these Rules.
Owners shall be given the opportunity to participate in the Project by retaining all or a portion of
their properties, by purchasing adjacent or other properties in the Project Area or by selling their
properties to the Commission and purchasing other properties in the Project Area, the feasibility
of which wilI be determined by the Commission.
The Commission wilI encourage participation in the growth, development, and redevelopment of
each of the parcels within the Project Area by as many qualified Owners as possible, subject to
provisions of these Rules and the Plan, and subject to, and limited by, factors deemed relevant by
the Commission, including, without limitation, the folIowing:
RosmoHl Spevacek Group, Inc.
November, 1999
2
Community Development CommisslDn of tile
City of San Bemardlno
Owner Participation Rules
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· The appropriateness of proposed land uses (i.e., compatibility with existing and
planned uses in the area); and/or
· The realignment, widening, opening, and/or elimination of public rights-of-way per
the City of San Bernardino General Plan, as it now exists or is hereafter amended;
and/or
· The removal, relocation, and/or installation of public utilities and public facilities;
and/or
· The ability of proposed participants to finance and/or complete proposed
acquisitions and developments; and/or
· The change in orientation and character of the Project Area; and/or
· The necessity to assemble areas for public and/or private development.
The Plan authorizes the Commission to establish reasonable priorities and preferences among
Owners. Accordingly, the following order of priorities is established:
· Existing qualified Owners, desiring to participate in their same location in
compliance with the Plan and these Rules, and/or who desire to build new
residential, industrial or commercial developments; and
· Qualified Owners who relocate within the Project Area in accordance with and as a
result of an implementation project which may cause the temporary displacement of
an Owner.
The Commission may, in its discretion, after conducting a duly noticed public hearing, decline to
execute an Owner Participation Agreement; resolve conflicting proposals between Owners
interested in redeveloping the same property, or resolve conflicting proposals between Owners
and third parties who are interested in redeveloping the property based upon a number of
considerations including, without limitation, the following:
· Conformity of proposals with the intent and objectives of the Plan; and/or
· Whether the proposal will be in the public interest; and/or
· The amount of sales tax revenue, tax increment revenue, and other economic benefit
accruing to the City and the Commission from the proposal; and/or
· Employment retention and generation and other economic benefits to the
Community which can be expected if the proposal is accepted; and/or
Rosellow Spevacek Group, IIIc.
November, 1999
3
COmmullity DeveloptItDIt Commissloll of the
City of Stilt Bemllrtllno
Owller Pllrtlclplltloll Ruks
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· Size and configuration of the parcel proposed for owner participation; and/or
· The Owners fmancial capability; prior experience with similar development, ability
to obtain financing, and ability to abide by Commission design standards and
development controls; and/or
· The time schedule for completion of a proposed project; and/or
· The estimated cost of public and Commission services required if the proposal is
accepted.
SECTION IV. (400) PARTICIPATION BY OWNERS OF REAL PROPERTY
A. (401) Participation in the Same Location
In appropriate circumstances, as determined by the Commission, where such action
would foster the. goals and objectives of the Plan, an Owner may participate in
substantially the same location either by retaining all or portions of the property currently
in use and/or purchase of adjacent property if needed, and if available for development;
rehabilitating or demolishing all or part of existing buildings or structures; initiating new
development; - and selling property or improvements to the Commission.
B.
(402) Participation in a Different Location
As necessary to accomplish the objectives of the Plan and as determined by the
Commission, the Commission may, in conjunction with a project, acquire land and
improvements at fair market value from an Owner who may then move to another
location. The Commission may then offer such real property for purchase to third parties
for redevelopment pursuant to the Plan.
SECTION V.
(500) P ARTICIP A TION BY TENANTS
Pursuant to these Rules, Owners who are tenants or persons engaged in business in the Project
Area will be given a reasonable opportunity to remain or to reenter in occupancy or business
within the Project Area if they otherwise meet the requirements prescribed by the Plan and these
Rules.
Rosenow Spt!VtIcek Group, Inc.
November, 1999
4
Conutlllnlty Development COIIl1IIisslDn 0/ tile
City 0/ SlIIIlIemtutllno
Owner Partlclptltlon IlIIles
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SECTION VI. (600) TYPES OF PARTICIPATION
A.
(601) Certificate of Conformance
If the Commission determines that the use of specific real property within the Project
Area meets the requirements of the Plan, and the Owners of such properties desire to
continue such use or uses, the Commission shall issue a Certificate of Conformance, if
the use or uses are in conformity with the Plan. A Certificate of Conformance shall
provide, among other things, that the Owners shall continue to operate and use the real
property in accordance with the requirements of the Plan.
B. (602) Owner Participation Agreements
The Commission is authorized to enter into an Owner Participation Agreement regarding
properties, which are not to be acquired by the Commission, the use of which conforms
or will be made to conform to the Plan. Each such agreement shall contain provisions
necessary to ensure that the participation proposal will be carried out and that the subject
property will be developed or used in accordance with the provisions of the Rules, the
Plan and the agreement. Each such agreement shall be recorded in the Office of the San
Bernardino County Recorder.
C.
(603) Statement of Interest
Before entering into an Agreement with a Non-Owner, or with another Owner who has
submitted an unsolicited proposal, or making an offer to purchase property in the Project
Area, the Commission shall notify Owners within the Project Area by certified mail,
return receipt requested, that the Commission is considering an Agreement or the
acquisition of property. The Commission shall include a "Statement of Interest in
Participation" ("Statement") form with the notification, which is attached as Exhibit B.
Within 30 days of receipt of such notification, any owner interested in participating in the
Project Area shall file a Statement with the Secretary of the Commission.
Prior to entering into an Agreement or purchasing property, as discussed above, the
Commission- shall also cause to be published a legal notice in a newspaper of general
circulation notifying Owners in the Project Area of the opportunity to submit a Statement.
Owners notified by publication of such legal notice in a newspaper shall be given thirty (30)
days from the date the notice is published in the newspaper to submit a Statement to the
Commission.
The Commission may disregard any Statement received after such thirty (30) day period.
Any Owner or tenant may submit such a Statement at any time before such notification
by the Commission.
Rosmow Spevllcek Group,llle,
November, 1999
5
COtnmlllllty Developmell' C:omm/sskHI o/the
City 0/ SIIII BemlUdillo
Owller Pllrtlclplllloll RIlles
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The Commission shall consider all Statements, which are submitted in a timely fashion
and shall seek to negotiate an Owner Participation Agreement, if deemed feasible and
appropriate by the Commission.
SECTION VII. (700) ENFORCEMENT
In the event a property is not developed or used in conformance with the Plan, or in conformance
with a Certificate of Conformance or an Owner Participation Agreement, then the Commission is
authorized to (I) acquire the property or any interest therein or (2) take any other appropriate
action to obtain such conformance.
SECTION VIII. (800) PROCEDURES FOR AMENDING PARTICIPATION RULES
The Commission may amend these Rules at any meeting held after their adoption provided the
persons who have filed Statements and the participants who have entered into Owner
Participation Agreements are notified in writing at least fourteen (14) days before the meeting at
which time the proposed amendment will be considered. Notice shall be either in person or by
first-class mail. Such notice will be mailed or delivered to the address shown on the Statement
or as indicated in the Owner Participation Agreement.
Rosenow SpeIIflCek (irtHlp, Inc.
November, /999
6
Community Development Commission o/tlte
City 0/ San Berntutlino
Owner Participation Rilles
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EXHIBIT "A"
SAN BERNARDINO COMMUNITY DEVELOPMENT COMMISSION
PROJECT AREA MAP
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- ~ ;t= ii!'!i..i:,I:.iw:;;....!:;!;;!:!i'ii;~ S.' U" ~
::: - OM - .............. ~ ... .... . ......... ............. I-- ExhibIt A
_ - > ::::::::":;".,:"" ..';;;;"';;;;;;;;;,;;;;;;;;;;;;; '- ..... . . . . .
- - & - ......"11............ ......... ................. II II 1
:'; l=;;i':~~rr~ j~irr~~,:,'r::t:.m,H::li . -- ~
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CITY OF SAN BERNARDINO
Proposed 40th Street Redevelopment Area
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EXHIBIT "B"
SAN BERNARDINO COMMUNITY DEVELOPMENT COMMISSION
STATEMENT OF INTEREST IN PARTICIPATION
I hereby express my interest in participation in the:
40th Street Redevelopment Project ("Project")
(See attached map for Project bOtUldaries)
I.
Name:
Telephone:
2. Address:
3. I am the record fee owner of the following property within the Project or hold a proprietary
interest in a cooperative housing project:
4.
I wish to participate in the Project checked above as follows:
I wish to construct a new building or other improvements on my present property.
I wish to acquire property within the Project and construct a new building or other
improvements on the property I acquire. (Identify proposed property below)
I wish to acquire property within the Project for expansion of my current business.
(Identify proposed property below)
I wiSh to rehabilitate my present property.
I wish to acquire property within the Project and rehabilitate an existing building or
other improvements on the property I acquire. (Identify proposed property below)
I wish to sell my present property.
Other. Please describe:
o
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Location of property proposed to be acquired:
5.
Background, experience, and information concerning you and your proposal (you may
include furtljer information, including a site plan, construction and operating pro forma, and
other information relevant to your proposed activity, on additional sheets if you desire to do
so):
(a) Generally describe background and experience, particularly with respect to
development of real property:
(b) Describe the development and redevelopment activities you propose and
indicate your experience relevant to your proposal:
(c) Other remarks:
6. By my signature below:
(0) I acknowledge receipt of a copy of the Owner Participation Rules and Reentry
Preferences. The Owner Participation Rules and Reentry Preferences describe in detail
when and how I may participate in the Project, and the Commission's obligations with
respect to my proposal.
(0) I understand that after I timely submit this Statement of Interest I will be required to
submit a detailed "Development Proposal" within the time period specified in and
conforming to the requirements of the Owner Participation Rules and Reentry
Preferences in order for my Development Proposal to be considered by the San
Bernardino Community Development Commission.
(0) I understand that submission of this Statement of Interest does not in any way obligate
me to participate in the Project, or obligate the San Bernardino Community
Development Commission to approve my proposal.
o
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lbis Statement of Interest is presented to the Commission pursuant to the Owner Participation
Rules and Reentry Preferences on the day of . 20_
Signed:
Print Name:
Title (if applicable):
Date:
Meecing Date(Dace Adopced):
Voce: Ayes: /-1"
.. ,FOR OrnCE USE ONL Y . NOT A PUBLIC DOCL~IE"''T ..
RESOLUTION AGE"'"]).\. ITEM TRACKING FOR.'\! ...
/~~/?9 Item# ;(!3?~ Resolutiont#tlv/9tf'1-o0
Nays: r"9- Abstain: ((). Absenc: '7
Change co motion to amend original docs:
Actachments:
~-
Contracc Term:
Resolution # On Attachments:
Contracc Expiration Date:
..,//
Dace Sent co Mayor: / .;;z.. / JJ / ? "l
Date of Mayor's Signarure: . /iA.,/8-1 / f9
Reso Log Updaced:~ .
Date Rerurned froml~or: I;;' . ~ f / / ;:
Dace of ~gnarure?J~ / ";1,/ 9
Seal Impressed: 1Iv/tL CO,. ~
I
.
Date Memo Senno Department forSignarure:
I~(V
See Attached:
Date Received Back:
Date Letter Sent to Outside Party for Signarure:
60 Day Reminder Letter Sent on 30th day:
90 day Reminder Lecter Sene on 45th day:
_ day Reminder Letter Sent:
See Attached:
See Attached:
See Attached:
See Attached:
Date Received Back:
r
)icee With/On Reso
nt St
para
UN
a
Request for Council Action & Staff Report Attached: <lb<... i?q'.If-
Cpdated Prior Resolutions (Other Than Below):
Cpdated CITY Personnel Folders (6413, 6429, 6433. l0584, 12634):
Cpdaced CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655):
Yes_ No ~ By ma-m
Yes_ )io V By dUlI1
Yes_ No ..,r By #lam
Yes_ No v By /?I:zflj
Yes No ~ By /?1d:.dl
Date ;;),;2//79
Date /"."V.z;z:. 9' f
Dacel~/.;?~ 95
Dace I~j{'^t~
Date! ~a;l. j" 7
Copies Distributed To~ ElJA ~
/2 /22../ 99
By: ~/:1l Date:
-Rea,u/ Noft'~ <'7l 1<e6o Cc&," Bd:- /Y1tWn Dafe:. " rl--/'2fif / 99
Other:
BEFORE ffiL'iG REVIEW FOR.'\I TO ENSURE Al'iY NOTATIONS MADE HERE ARE TR-\.J.'lSFERRED TO THE
'(EARL Y RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File:
pam
Date:
(Z- /J-i / 9?
Last Undated: 10/09/1998
.,;..~,
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RESOLUTIO~@ IPW
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING A DRAFT
METHOD OF RELOCATION PURSUANT TO SECTION 33411 OF THE
CALIFORNIA COMMUNITY REDEVELOPMENT LAW FOR THE 40TH
STREET REDEVELOPMENT PROJECT
WHEREAS, the Community Development Commission ("Commission") of the City of
San Bernardino has undertaken the required steps for the consideration of the adoption of the
proposed Redevelopment Plan for the 40th Street Redevelopment Project; and
WHEREAS, a draft Redevelopment Plan for the 40th Street Redevelopment Project
("Redevelopment Plan") has been prepared in accordance with the provisions of California
Health and Safety Code Sections 33000, et. sea., California Community Redevelopment Law
("CRL"); and
WHEREAS, Section 33411 of the CRL provides that the Commission shall prepare a
feasible method or plan for relocation of all of the following:
a. Families and persons to be temporarily or permanently displaced from housing
17
facilities in the project area; and
18
b.
Nonprofit local community institutions to be temporarily or permanently
19
displaced from facilities actually used for institutional purposes in the project area; and
20
WHEREAS, Section 33352(f) of the CRL requires that the Report submitted to the City
21
Council in connection with the Redevelopment Plan include a method or plan for the relocation
of families and persons to be temporarily or permanently displaced from the 40th Street
Redevelopment Project; and
22
23
24
WHEREAS, the Commission desires to approve the draft Method of Relocation
pursuant to Section 33411 of the CRL applicable to the 40th Street Redevelopment Project.
25
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING A DRAFI' METHOD
OF RELOCATION PURSUANT TO SECTION 33411 OF THE CALIFORNIA
COMMUNITY REDEVEWPMENT LAW FOR THE 40TH STREET
REDEVELOPMENT PROJECT
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The draft Method of Relocation pursuant to Section 33411 of the CRL for
the 40th Street Redevelopment Project attached hereto as Attachment A and incorporated herein
by reference is hereby approved and made available for public review and comment.
9 III
10 III
11 III
12 III
13 III
14 III
15 III
16 III
17 III
18 III
19 III
20 III
21 III
22 III
23 III
24 III
25 III
26 III
27 III
28 III
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING A DRAFI' MEmOD
OF RELOCATION PURSUANT TO SECTION 33411 OF THE CALIFORNIA
COMMUNITY REDEVEWPMENT LAW FOR THE 40TH STREET
REDEVEWPMENT PROJECT
4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
5 Development Commission of the City of San Bernardino at a
meetin
6 thereof, held on the
7 COMMISSION MEMBERS:
8 ESTRADA
9 LIEN
10 McGINNIS
II SCHNETZ
12 SUAREZ
I3 ANDERSON
14 MILLER
15
16
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19
20
21
22
23
24
25 By:
26
27
0 28
day of
, 1999, by the following vote, to wit
ABSTAIN .ABSENT
AYRC;
NAYS
Secretary
The foregoing Resolution is hereby approved this
day of
,1999.
JUDITH V ALLES, Chairperson
Community Development Commission
of the City of San Bernardino
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City of San Bernardino
201 Nonh E Street, Suite 301
San Bernardino, California 9240 I
(909) 384-5081
San Bernardino Community
. Development Commission
General Relocation Rules (NIethod of
Relocation Pursuant to Section 33411
of the California Community
Law) fer the
4ft StJeet Project
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Adopted on:
Resolution No.
by
Prepared by:
Rosenow Spevacek Group, Inc.
540 North Golden Circle, Suite 305
Santa Ana, CA 92705
(714) 541-4585 Phone
(714) 836-1748 Fax
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Novemti~, 1999
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METHOD OF RELOCATION
FOR THE
CITY OF SAN BERNARDINO
COMMUNITY DEVELOPMENT COMMISSION
40TH STREET REDEVELOPMENT PROJECT
In the adoption and implementation of the Redevelopment Plan for the 40th Street
Redevelopment Project ("Plan"), the Community Development Commission ("Commission") of
the City of San Bernardino is the public agency responsible for relocation. The 40th Street
Redevelopment Project ("Project Area") includes two separate areas. The first is generally
bounded by 44th Street on the north, Ralston Avenue, and Sonora Drive on the south, Waterman
A venue on the east, and Electric A venue and Mountain View Avenue on the west. The second
area is east of Sierra Way on 49th Street. Sections 33352(t) and 33411 of the California
Community Redevelopment Law, Health and Safety Code Section 33000, et. seQ. ("CRL"),
require that the Commission prepare a method or plan for the relocation of families and persons
who may be temporarily or permanently displaced from housing facilities located within the
Project Area, and nonprofit local community institutions to be temporarily or permanently
displaced from facilities actually used for institutional purposes in the Project Area. The
Commission will meetits relocation responsibilities through the use of its staff and consultants,
supplemented by assistance from local realtors, social agencies, and civic organizations.
The Commission does not anticipate that implementation of the Plan will create significant
dislocation of businesses, residents, or local community institutions; however, it may be
necessary for the 'Commission to undertake relocation actions at some time during project
implementation. Specific businesses, residents, or local community institutions to be relocated
cannot be identified at this time. If relocation activities are undertaken, the Commission will
handle those relocation cases, which result from project activities on an individual case-by-case
basis.
As provided in Section 33411.1 of the CRL, the Commission shall not displace 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. If relocation is necessary, all site residents will be rehoused with a
minimum of hardship; in accommodations which are decent, safe, sanitary and suitable to their
individual needs; located in areas not less desirable than the Project Area in regard to public
utilities and public and commercial facilities; reasonably accessible to their places of
employment; and priced within their financial means.
The Commission is required to adhere to the State Relocation Law (Govemment Code 7260
through 7277) and follow the California Relocation Assistance and Real Property Acquisition
Guidelines ("State Guidelines") as established in the California Code of Regulations, Title 25,
Chapter 6.
Rosenow Spevacek Grollp,Ine.
November, 1999
San Bernardino Community Development Collllllbskm
1 Method of RelDcatlon
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Therefore, in conformance with Sections 33352(f) and 33411 of the CRL, the Commission
adopts, as its "Method of Relocation" the State Guidelines and the State Relocation Law as they
now exist and as they may be amended from time to time. A copy of the currently applicable
version of the State Guidelines and the State Relocation Law is on file in the offices of the City
Clerk/Commission Secretary and attached hereto as Exhibit A and Exhibit B and incorporated
herein by reference. Any revisions to the State Guidelines and State Relocation Law shall
automatically be incorporated within the Method of Relocation without further action of the
Commission.
Prior to commencement of any Commission activity which will cause substantial displacement
of residents, the Commission will adopt a specific relocation plan in conformance with the State
Guidelines. To the extent appropriate, the Commission may supplement those provisions
provided in the State Guidelines to meet the particular relocation needs of a specific project.
Such supplemental policies will not involve reduction, but instead enhancement, of the relocation
benefits required by State Relocation Law and the State Guidelines.
Rostmow Spevacek GroIlP, Ine.
November, 1999
San Bernardino Comntllnlty Development Collflllission
2 M~~~hiocaMn
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EXHIBIT A
STATE GUIDELINES
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EXHIBIT B
STATE RELOCATION LAW
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