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HomeMy WebLinkAboutRPT 3 1990-91 ANN RPT 01-06-92A rFNnA ,_,, RETORT.'-; NO. 3 1-6-92 {TE: JANUARY 61 1992 \ TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: TRANSMITTAL OF THE 1990-91 ANNUAL REPORT RECOMMENDATION It is recommended that the City Council receive and f ile the annual report for 1990-91. BACKGROUND Section 330801 of the California Health and Safety Code requires the preparation and filing of an annual report by Tustin's Community Redevelopment Agency with it's legislative body. A copy of the report has also been filed with the State Controller and State Department of Housing and Community Development. Staff will be available to respond to any questions the City Council may have. Christine A. Shington Assistant City Ma ger CAS:kbc\rafy9091.cas ANNUAL REPORT OF THE REDEVELOPMENT AGENCY FISCAL YEAR 1990-91 TUSTIN COMMUNITY REDEVELOPMENT AGENCY JANUARY, 1992 Redevelopment Agency Members Charles E. Puckett, Chairman Leslie A. Pontious, Mayor Pro tem Richard B. Edgar Earl J. Prescott Jim Potts Staf f William A. Huston, Executive Director Christine A. Shingleton, Assistant City Manager Director of Community Development Ronald A. Nault, Treasurer James G. Rourke, Attorney Mary G. Wynn, Secretary/Clerk Associate Staff Robert Ledendecker, Public Works Director TABLE OF CONTENTS I. Introduction PAGE 1 II. Background on Tustin Community Redevelopment Agency 2 III. Redevelopment Project Areas 2 IV. Redevelopment Agency Annual Review 3 V. The Benefits of Redevelopment to Tustin 5 VI. Major Accomplishments 6 I. Introduction California Health and Safety Code Section 33080.1 requires the preparation and filing of an annual report by a redevelopment agency with its legislative body. A copy of this report must be filed with the State Controller and also with the State Department of Housing and Community Development. The*annual report must contain the following: 1. An independent financial audit for the previous fiscal year. The audit must include an opinion of the Agency's compliance with laws, regulations and administrative requirements governing activities of the Agency. 2. A fiscal statement containing the following information: a. The amount of outstanding indebtedness of the Agency. b. The amount of tax increment property tax revenue generated. C. The amount of tax increment revenues paid to taxing agencies pursuant to Section 33401. d.- The required report to the State Controller. 3. Any other fiscal information which the Agency believes is useful. 4. A description of the Agency's activities affecting housing and displacement containing the following information: a. The total number of households displaced or moved from their dwelling units •as part of a redevelopment project during 1990-91. b. An estimate of the total number of households that will be displaced or moved during 1990-91. C. The total number of dwelling units housing persons and families of low and moderate income which were destroyed or removed from the housing market in 1990-91 as part of'a redevelopment project. d. The total number of Agency assisted dwelling units constructed, rehabilitated, acquired or subsidized during 1990-91 for occupancy at affordable cost by persons and families of low and moderate income. 1 - e. The status and use of the Low and Moderate Income Housing Fund created pursuant to Section 33334.3. f. The total amount of funds expended for planning and administrative costs related to the Low and Moderate Income Housing Fund. Any other information the Agency believes useful to explain its housing programs. g. Any excess surplus funds which have accumulated in the Low and Moderate Income Housing Fund. Excess funds are defined as any unexpended or unencumbered amount in the fund greater than $500,000 or the aggregate amount deposited in the fund in the preceding five (5) fiscal years (monies are deemed encumbered if committed by a legally enforceable. contract or agreement). 5. Any other information the Agency believes useful to explain its programs. II. Background on Tustin Community Redevelopment Agency The Tustin Community Redevelopment Agency was created in 1976 and is made up of members of the Tustin City Council who are elected at large by popular vote. Provisions of State law enable the Agency to undertake community projects designed to improve certain areas within the City which have suffered economic decline, deterioration of improvements, or which have been unable to attract and promote new private investments to enhance the quality of life in the area. The Agency is responsible for setting the course of redevelopment in Tustin and for being sure that redevelopment plans are in the best interests of the community. In directing the City Redevelopment activities, State law provides the Agency with broad governmental functions and authority to accomplish its purpose, including, but not limited to, the right to issue bonds for authorized purposes and to expend their proceeds, the right to acquire, sell, rehabilitate, develop, administer or lease property. The Agency may also demolish buildings, -clear land, and cause construction of improvements including streets and sidewalks. III. Redevelopment Project Areas In Tustin there are two redevelopment project areas. A description of each area follows: �q IV. Town Center Proiect Area The Town Center Project area, established in 1976, encompasses approximately 360 acres in the center of the City of Tustin. It is in an area which includes the historic "Old Town" and civic center and all the commercial properties within the central city. The Project area has already seen a number of major development projects including new retail, office, residential and public improvement efforts. South Central Project Area The South/Central Project Area encompasses approximately 370 acres and is generally that area bounded by Edinger, Red Hill, Valencia and the Costa Mesa (SR -55) Freeway. The area lacks right-of-way improvements such as street lights, sidewalks, adequate street capacity, and circulation. The City currently approved environmental documents for the Pacific Center East project (located in this area) which will provide much needed improvements to Edinger Avenue and will include office, hotel and limited commercial uses. Redevelopment Agency Annual Review A. Independent Financial Audit and Compliance Audit The following review is intended to comply with requirements in the Health and Safety Code as identified above. A copy of the audit and compliance audit for 1990-91 is attached to this report. .B. Fiscal Statement The amount of outstanding indebtedness, as of June 30, 1991, was reported to be $12,851,580. The amount of tax increment property tax revenue received by the Agency in 1990-91 was $3,958,697. The amount of tax increment revenues paid to taxing agencies pursuant to Section 33401 was $-0-. There is no other fiscal information which the Agency believes to be useful at the present time. K C. Activities Affecting Housing and Displacement 1. The total number of households displaced or moved as part of the Town Center or South Central redevelopment projects during 1990-91 were: Total households displaced -0- Low and moderate income -0- (included in total) 2. The total number of households estimated to be displaced as part of the Town Center or South Central redevelopment projects in 1990-91 was: Total estimated displacement -0- Low and moderate income -0- (included in total) 3. The total number of low and moderate income dwelling units demolished or removed from the housing stock in 1990-91 were: mm 4. The total number of Agency assisted dwelling units which were constructed, rehabilitated, acquired, or subsidized in 1990-91 for occupancy at affordable cost by persons and families of low and moderate income is: MC 5. The Redevelopment Plan for the Town Center Redevelopment Project was adopted November 22, 1976, and amended on March 20, 1989. Pursuant to Section 33334.5 of the Health and Safety Code, the Agency has annually adopted resolutions which allow them at this time not to be obligated to deposit any Town Center Project Area tax increment revenues into a Low and Moderate Income Housing Fund due to existing programs and obligations. Agency staff are also proposing adoption of two resolutions on January 20, 1992 which would not require deposit of Town Center tax increment into a Low and Moderate Income fund during fiscal year 1991-92. 6. As of June 30, 1991, the accrued balance in the Agency's Low and Moderate Income Fund for the South Central Project Area was $1,804,675 with $408,934 of this total accrued including interest during the 4 fiscal year ending June 30, 1991. Pursuant to Section 33334.12, the Agency must expend or encumber this identified surplus within five years from the date the monies become excess surplus. The following is the necessary.expenditure summary for amounts in the Fund received to date: V. The Benefits of Redevelopment to Tustin No discussion of redevelopment would be complete without reference to the benefits to the community as a whole. These benefits are many and far reaching, for instance, in the Agency's first twelve years alone over 50 major projects with a total building valuation of $61.5 million were completed within Tustin Redevelopment Project Areas. This $61.5 million of construction was accomplished with just $3.1 million in public funding or $20 of private investment for every one dollar of public funding. Estimated retail sales from these projects in the Redevelopment Areas brought in approximately $760,000 annually in sales tax revenue to the City and created approximately 1,400 new jobs. ' Tax increment generated by redevelopment in Tustin has grown steadily to approximately 4 million dollars annually by June 30, 1991 also making it possible for the Agency to allocate significant revenues to public improvement projects within the City. Tustin's framework for the future continues to rest on it's solid foundation of past redevelopment activities. Simply stated, the goals of the Agency are: 5 Expenditures Year Amount Needed 1987-1988 $460,963 FY 1992-1993 1988-1989 396,131 1993-1994 1989-1990 397,103 1994-1995 1990-1991 547,478 1995-1996 $1,804,675 7. No funds were expended for planning and administrative costs related to the South Central project Housing Fund during fiscal year,1990-91. 8. There is no other housing program information which the Agency believes to be useful at this time. V. The Benefits of Redevelopment to Tustin No discussion of redevelopment would be complete without reference to the benefits to the community as a whole. These benefits are many and far reaching, for instance, in the Agency's first twelve years alone over 50 major projects with a total building valuation of $61.5 million were completed within Tustin Redevelopment Project Areas. This $61.5 million of construction was accomplished with just $3.1 million in public funding or $20 of private investment for every one dollar of public funding. Estimated retail sales from these projects in the Redevelopment Areas brought in approximately $760,000 annually in sales tax revenue to the City and created approximately 1,400 new jobs. ' Tax increment generated by redevelopment in Tustin has grown steadily to approximately 4 million dollars annually by June 30, 1991 also making it possible for the Agency to allocate significant revenues to public improvement projects within the City. Tustin's framework for the future continues to rest on it's solid foundation of past redevelopment activities. Simply stated, the goals of the Agency are: 5 -Rejuvenate Dilapidated Areas -Stimulate Private Investment -Strengthen City Financial Base Including Sales Tax And Property Taxes -Improve Public Facilities -Create Jobs vI. Major 1990-91 Accomplishments During fiscal year 1990-91 the following is a summary of the Agency's major accomplishments: 1. Completion of the Pacific Center East Specific Plan (South Central Project Area) 2. Negotiation of lease terms, coordinated completion of construction plans and relocated City Hall offices to temporary location at 15222 Del Amo in conjunction with the Civic Center expansion project (Town Center Project Area) . 3. Coordinated completion of plans and bid specifications, completion of tenant improvements and relocated police department to old City Hall facility at 300 Centennial Way (Town Center Project Area). 4. Coordinated completion of Civic Center expansion plans and bid specifications and awarded contract 'for construction (Town Center Project Area). 5. Coordinated development of a Community Improvement Participation Program to improve the southwest portion of the South Central Project Area (South Central Project Area) . 6. Adopted an ordinance imposing requirements for earthquake mitigation on unreinforced masonry buildings (Town Center Project Area) . 7. Offered owners of unreinforced buildings financial assistance to finance seismic retrofit (Town Center Project Area) . 8. Completion and adoption of a six year financial plan for the Town Center Project Area (Town Center Project Area). 9. Authorized issuance of $13,100,000 in Subordinate Tax Allocation Bonds, Series 1991 (Town Center Project Area) . 10. Initiated Columbus Tustin site improvements and storm drain system improvements (Town Center Project Area). 6 _ 11. Completed storm drain improvements between Red Hill & Del Amo along Edinger Avenue (South Central Project Area). 7