HomeMy WebLinkAbout10 FUNDING T. LTG DIST 04-15-02AGENDA REPORT
NO. 10
04-15-02
400-10 O
MEETING DATE: APRIL 15, 2002 340 60
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT AGENCY STAFF
APPROVAL OF FUNDING FROM THE TUSTIN LIGHTING DISTRICT
FOR AMENDMENT NO. 1 TO DISPOSITION AND DEVELOPMENT
AGREEMENTS FOR THE REDEVELOPMENT OF PROPERTY
LOCATED 301-307 EL CAMINO REAL
SUMMARY
City Council approval is requested for funding from the Tustin Lighting District for
provision of lighting and electrical utility improvements pursuant to Amendment No. 1 to
the Old Town Plaza Commercial Rehabilitation Project Disposition and Development
Agreement (DDA) for a site to be redeveloped in the Town Center Project Area.
RECOMMENDATION
Staff recommends the Redevelopment Agency take the following actions:
Appropriate an amount of $7,500 out of the Tustin Lighting District funds, thereby
increasing the total amount to $87,500 for the rehabilitation of the commercial
property.
FISCAL IMPACT
The City and Agency Assistance for the commercial rehabilitation project is estimated
not to exceed $80,000 from Town Center Redevelopment Project tax increment funds
and $7,500 from the Tustin Light District funds.
BACKGROUND/DISCUSSION
On February 20, 2001 the Agency approved a Development and Disposition Agreement
for the commercial rehabilitation project of the property at 301-307 El Camino Real.
The Old Town Plaza Commercial Rehabilitation Project DDA with the Owner calls for
the renovation of the commercial property at 301-307 El Camino Real to improve the
business environment in the Old Town Tustin commercial district.
The Commercial Rehabilitation Project DDA requires Owner to construct certain
rehabilitation improvements to the commercial property. The improvements will be
constructed in compliance with all provisions of the DDA and with all "Conditions of
Approval" stipulated by the Tustin Planning Commission, the City Council and other
applicable governmental agencies having jurisdiction.
William A. Huston
Approval of Tustin Lighting District Funding
April 15, 2002
Page 2
Under the DDA, the total rehabilitation budget was estimated to be $116,250 with total
Agency assistance to be in the sum up to $80,000. The Owner's obligation for the
improvements is the sum not less than $36,250. During the course of construction the
Agency and Owner identified desirable improvements within the budgeted amount,
specifically the undergrounding of existing overhead electric utility lines and provision
for installation of lighting and electrical utilities as part of the Agency planned public
alley improvements in the Old Town district, but were unable to completely eliminate the
cost overruns without substantially diminishing the quality of the improvements originally
described in the DDA.
The Owner and Agency have negotiated mutual contributions to cover the increased
costs for the Rehabilitation Project. The Owner's contribution would provide to the City
of Tustin a public utility easement and right of entry for installation of public
improvements along the easterly boundary of the property adjacent to the public alley
and Agency's contribution would increase to its sum up to $87,500. Agency financial
assistance is to be provided as progress payments to reimburse the Owner for the
construction of the Rehabilitation Improvements.
CEQA CATEGORICAL EXEMPTION
The Commercial Rehabilitation DDA and project has been determined to be
categorically exempt pursuant to Class 3, Section 15303 of Title 14, Chapter 3 of the
California Code of Regulations (Guidelines for the California Environmental Quality Act).
FINDING OF BENEFIT
The site is located in the Town Center Project Area. On March 6, 2000 the Tustin
Community Redevelopment Agency adopted a Second Five-Year Implementation Plan
for the Town Center and South/Central Redevelopment Project areas for fiscal years
2000-2001 through 2004-2005. The Implementation Plan was composed of two parts, a
five-year plan for redevelopment activities and a five-year plan for housing activities.
William A. Huston
Approval of Tustin Lighting District Funding
April 15, 2002
Page 3
The proposed commercial rehabilitation project is consistent with the Implementation
Plan's five-year plan for redevelopment activities for the Town Center Project Area. The
Agency's assistance will rehabilitate the existing substandard and deteriorating
structures to improve building conditions, increase functionality and desirability, and to
integrate design characteristics with the aim of creating a cohesive commercial district
in the Project Area. The project will remove a blighting influence in the Project Area due
to deterioration, age and obsolescence, and stimulate expansion and retention of
existing and new business in the Project Area.
Christine Shingleton
Assistant City Manager
Redevelopment Program Manager
RDA\ccreport~Apr 15 Amend No 1 Old Town Plaza.doc