economic development division report to the city council merger of the northwest redevelopment...
TRANSCRIPT
Economic Development Division
Report to the City Council
Merger of the Northwest
Redevelopment Projects, and
Amendment No. 4 to the Villa-Parke Redevelopment Plan
October 25, 2010
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Economic Development Division
Merger Action
• Approve Resolution adopting Negative Declaration.
• Postpone action to allow for additional analysis on the possible flow of tax increment dollars.
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Economic Development Division
Report to the City Council
• Prior to amending a Redevelopment Plan, California Community Redevelopment Law (CCRL) requires the preparation of a Report to City Council.
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Economic Development Division
Purpose of the Report
• Documents blight conditions on a parcel basis.
• Identifies projects and programs designed to eliminate blight.
• Proposes an increase to the Villa-Parke tax increment cap commensurate with projects and programs.
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Economic Development Division
Findings of the Report
• Analyzed all parcels (1,214) in the five N.W. Redevelopment Project Areas.
• 533 parcels exhibited at least one physical condition of blight.
• All parcels exhibited at least one economic condition of blight.
• CCRL states that the mere existence of blighted conditions is not sufficient to justify an amendment to a redevelopment area.
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Economic Development Division
How Much Blight is Enough?
• Per CCRL the area must have more than just physical and economic blight to justify amending the tax increment cap.
• Blight must also be so problematic that it creates special needs that can only be addressed by the use of redevelopment dollars.
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Economic Development Division
Blight Conditions Summary
• Further analysis of the blighted parcels that have significant remaining blight resulted in 89 that meet the CCRL definition as having a severe combination of unsafe or unhealthy conditions.
• 41 of the 89 parcels are located within Villa-Parke Redevelopment Project Area.
• The Report concluded that the significant remaining blight cannot be alleviated unless the Villa-Parke tax increment cap is amended.
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Economic Development Division
Villa-Parke Amendment
• Current cap is $20.4 million.
• Current cap will be reached by end of Calendar Year 2010.
• Cannot collect tax increment once financial cap is reached.
• Propose an increase of $44.6 million resulting in a new cap amount of $65 million.
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Economic Development Division
Cap Amendment
• Necessary to address significant remaining blight.
• After subtracting $16 million mandated expenses, the Commission will receive approximately $28 million for projects and programs.
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Economic Development Division
Projects and Programs
Business Improvement- $11 million> Façade improvements.> Business attraction/retention.> Business rehabilitation
Housing Rehabilitation- $9.7 million> Replacement of Un-permitted
construction.> Replacement of unsafe stairs and decks.> Installation of bollards at gas meters.
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Economic Development Division
Projects and Programs
Infrastructure- $10 million> Reconstruction of streets, curbs,
gutters, sidewalks (as needed).> Streetscape improvements along
Fair Oaks Blvd., Orange Grove Blvd., and Maple St.
> Upgrades to water, sewer, and drainage system throughout (as needed).
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Economic Development Division
Benefits of the Tax Increment Cap Increase
• The Tax Increment Cap Amendment will help the Villa-Parke Project Area, which has the most remaining blight out of the five project areas.
• Without an increase to the Tax Increment Cap, there will not be enough money to address the $30 million plus worth of significant remaining blight.
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Economic Development Division
Conclusion
Staff Recommendation:>Commission to approve the resolution
transmitting the Report to City Council.>Commission and Council to adopt the
Initial Study and Negative Declaration.>Commission and Council to approve a
resolution adopting Amendment No. 4 to the Villa-Parke Redevelopment Plan.
>City Council conduct the first reading of the ordinance for the Villa-Parke Amendment.
>Continue action on the Merger until December 6, 2010.
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Economic Development Division
Sample Blighted Properties
• Liquor store noted by Police Department as source of several crimes (AB)
• Unsafe bars on windows (BAR)
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Economic Development Division
Sample Blighted Properties
• Multiple loose wires (EH)
• Boarded-up windows (BW)
• Unsafe bars on windows (BAR)
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Economic Development Division
Sample Blighted Properties
• Graffiti indicative of high crime (G)
• Electrical hazards (EH)
• Boarded-up windows (BW)
• Unsafe bars on windows (BAR)