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HomeMy WebLinkAboutOB 1 TWN CTR REDEV 03-06-89TO: FROM: SUBJECT: .. ¥ILLIMI A. HUSTON, CITY RA#AGER COI~NITY DEVELOPMENT DEPARTHE~ JOI#T CITY COUNCIL/REDEYELOPIqENT AGENCY SESSION - PROPOSED SECOND AMENDIqENT TO THE NqENDED REDEYELOPlqENT PLAN FOR THE TO'dH CENTER REDE'VELOPIqENT PROJECT AREA RECOI~ENDATION It t s recommended that the Clty Council · 1. Adopt Resolution No. 89-26 overruling written and oral objectlons and adopting written flndtngs in response to wrttten objections received and overruling such written objections. 2. M.O. - That Ordinance No. 1021 have first reading by title only. M.O. - That Ordinance No. 1021 be introduced. BACKGROUND The City Council and Redevelopment Agency held a joint public hearing on February 21st to consider the proposed Second Amendment to the Amended Redevelopment Plan for the Town Center Redevelopment Project Area. At that meeting all written comments were entered into the record and the public hearing was closed. As required by State law, Agency staff have responded in writing to the written objections received from affected Project Area property owners and taxing agencies. Written responses to written objections are attached as Exhibit A to Resolution No. 89-26 City Council consideration. Staff have also attached a Summary of Questions and Responses to many oral concerns received regarding the Proposed Amendment (Attachment I to staff report). Once written responses are officially received and placed into the record, staff would recommend City Council approval of Resolution No. 89-26 and introduction of Ordinance No. 1021 approving and adopting the Second Amendment to the Amended Redevelopment Plan for the Tustin Town Center Redevelopment Project Area. Director of Community Development Attachments' Resolution No. 89-26 Ordinance No. 1021 ATTACI'IMENT I QUESTIONS AND RESPONSES SECOND AiqEN[MENT TO NqENDED REDEVELOPIqENT PLAN FOR THE TOgN CENTER REDEYELOPIqENT PRO,1ECT AREA WHY ARE AMENI:gqENTS BEING PROPOSED? ~ i i The Second Amendment proposes some 32 changes and addltions to the Town Center Plan. The major purposes of the Amendments are as follows: 1. TO ADD CERTAIN PUBLIC ]]NPROVEMENTS AND FACILITIES TO THE LIST CONTAINED WITHIN THE PLAN TO BE FUNDED IN WHOLE OR IN PART BY TAX INCREMENT REVENUES. The existin9 Town Center Redevelopment Plan contains a list of public improvement projects on which the Agency may spend redevelopment funds. In the .thirteen years since adoption of the original Plan, the Agency has extensively evaluated the Plan's original objectives and the progress of the Agency's public improvement program in the Town Center Area. Based on this evaluation, there are several additional public improvement projects which the Redevelopment Agency may wish to use redevelopment funds in the future in order to implement and further attain its goals and objectives. Some of these improvements include: the construction of the Tustin Area Senior Center; street, traffic and water improvements; expansion/renovation of the Civic Center; renovation of. an existing school site for recreational programs; renovation of Peppertree Park; and additional improvements to Columbus-Tustin Park. A complete list of specific projects is provided in the proposed Amendment and Report to City Council. These projects should be listed in the Plan if there is any expectation that even a portion of funding will be by redevelopment tax increment revenues. Actual expenditures of Redevelopment Agency funds for any individual project including any future financing for such programs would require separate discretionary approval by the Agency. 2. INCREASE THE LIMIT ON THE PRINCIPAL AMOUNT OF BONDED INDEBTEDNESS THAT CAN BE OUTSTANDING BY THE AGENCY AT ANY ONE TINE FROFt $20 MILLION TO $35 #ILLION TO COVER ALL' EXISTING PROJECT DEBTS AS WELL AS ANY ADDITIONAL BONDED INDEBTEDNESS THAT PlAY BE NECESSARY AS A RESULT OF ADDITIONAL PROGRAMS PROPOSED. This is essentially like a credit limit. At the present time, the Agency is near its limit and in order to ensure adequate funding of those projects to be added to the Plan, as well as other projects which may come along in the future, the bonded indebtedness limit for the Town Center Redevelopment Project Area needs to be raised. A full financial analysis of the necessity for the proposed increase is provided in the Report to Council on the proposed Amendment. If the limit is not increased, the Agency will be severely hampered in its ability to contribute to certain public improvements within the Town Center Redevelopment Project Area, as existing bond debts would have to be paid off p~ior to. issuance of more bonds. It is important to note that bonds are paid off with tax Attachment ! Questions & Responses Page two Increment revenues from wtthtn the Town Center Redevelopment Plan Area and are not an obligation on the residents of the City or on the Cl~cy's General fund. 3. RESTATE THE TAX INCREMENT LIMIT IN THE PLAN OF $3 MILLION PER YEAR AS $90 MILLION OVER THE LIFE OF THE PLAN. This does not affect the Increase.tn the Bond debt 11mtt. 4. EXTEND AGENCY'S POgERS OF EMINENT DOI~AIN FOR 12 YEARS (THE MAXIMUM PERMITTEO BY STATE LAW). The Agency's current eminent domain authority expired in November 1988. Eminent domain has not been and would not be used as a method for wholesale property acquisition, but rather it would be used selectively when there are significant obstacles to achieving the goals and objectives of the Agency in its efforts to facilitate improvement within the project area. For those property owners who are desirous of developing or selllng their properties for private development, there would be significant tax advantages lost if they were unable to obtain a "friendly" threat of condemnation letter from the Agency. 5. REVISE AND UPDATE PORTIONS OF THE TONN CENTER REDEVELOPMENT PLAN'S LANGUAGE OR TEXT TO BE CONSISTENT tJITH RECENT REVISIONS IN STATE LAtl ANO TO CLARIFY THE ROLES OF THE AGENCY, PROPERTY OtINERS ANO BUSINESSES IN THE REOEVELOPMENT PROCESS. The majority of these changes are of a "housekeeping" nature. gHAT IS TAX ZNCRI-~/NT.? When a Redevelopment Project area ts adopted, the extstlng assessed value of all property within the area ts "frozen" for accounting purposes and is termed "base valuation". Any additional increases in assessed valuatlon over the base year is termed "tax Increment". One percent of tht s annual tax increment would be returned to the Redevelopment Project fund to be used on improvements within the project area or to repay bonds to finance improvements. For example, tf property was assessed at $100,000 this year, the taxes paid by the property owner'at the tax rate of one percent (1~) would be $1,000 pursuant to Proposition 13. If, as a result of resale (changes in ownership) or new construction on the property, the property increases in assessed valuation to $500,000, the taxes paid by the property owner at the same tax rate would be $5,000. The difference between $1,000 and $5,000 or $4,000 is called "Tax Increment" and it is these funds which become the revenue of the Redevelopment Agency. With the establlshment of a Redevelopment Project, 1~ of the annual Attachment I Questions & Responses Page three Incremental increases tn the assessed value of improvements within the project area are returned to the Redevelopment Project Fund (not the City's General Fund) to be used on improvements within the Project area. Without a Redevelopment Project, the City would receive approximately tS~ of the total tax revenue of 1%, the remaining portion would go to the County. Basically, a Redevelopment Project brings back.revenue to the Ctty, to be used wlthtn the City rather than dispersed throughout the County and to other taxlng agencies. WILL THE PROPOSEO AMENDMENT INCREASE YOUR TAXES OR IMPACT EXISTING PROPERTY LoANs? ..................... The Amendment wi11 not increase taxes or lmpact existing property loans. NHAT IS THE IMPACT OF THE AMENDMENT ON PROPERTY VALUES? The Amendment ts not expected to negatively Impact property values or affect a proper, ty owner's ability to sell their property. Tn fact, since creation of the Town Center Redevelopment Project, property values have escalated dramatically tn the Project Area. HILL PROPERTIES BE AFFECTED BY PROPOSED AMENDMENTS? I ii I i i The Amendments, themselves, are not expected to directly affect private property. No change In the boundaries or additional uses In the Town Center Redevelopment Plan are proposed. DOES THE AGENCY HAVE ANY CURRENT PLANS OR SCHEDULES TO ..... ACQUIRE, OR,., CONDEMN PROPl~RTY? .................... The Agency currently has no plans or specific schedules for condemnation of property. In thirteen years, since tt was created, the Redevelopment Agency has-never used condemnation to acquire fee tttle to property. WHAT IS "FRIENDLY" CONDEMNATION? "Friendly" condemnation ts a situation where a property owner wishes to sell to the City or Agency or a.private party. If the property tn question ls located In a Redevelopment Area, the Agency can provtde a letter for tax purposes threatening condemnation, thereby, providing the property owner with the ability to extend the 12 month capital gains relnvestment requirement. Additionally, the assessed valuation of the property sold Attachment T Questions & Responses Page four can be transferred to a similar property in the County so the owner is not penalized by being reassessed a new purchase price at the new location. WHAT 1S A CERTXFXCATE OF CONFORMANCE? To allay any concerns that a property owner may have as to whether they might ever be threatened with condemnation, the proposed Amendment provides a process where an owner may request the Agency to approve a Certificate of Compliance on their property. Once a Certificate of Compliance is approved and recorded on a specific property, the Agency would be restricted in their ability to acquire or condemn the property. Staff have undertaken a cursory review of developments within the Town Center Project Area that residents have voiced concern about. Based on this review, staff would recommend if requests from specific Homeowner's Association are received, that Certificates of Conformance be issued for at least the Palmwood Condominium Project, Packers Circle Village Homes and the Prospect Park Condominium Project. HAS AN ENVIRONMENTAL XHPACT REPORT (EIR) BEEN COMPLETED ON THE PROPOSED A~IE NOME kiT S? i ii A comprehensive Final EIR on the proposed Amendments has been completed and was certified by the City' Council and Redevelopment Agency on December 6, 1988. WHAT RXGHTS DO BUSINESSES HAVE UNDER THE TOWN CENTER REDEVELOPlqENT PLAN? i i i i ii ii I i i The Redevelopment Agency at its meeting on February 6, 1989 adopted rules governing participation and references by property owners and business occupants in the Town Center Project Area. Pursuant to these rules, business within the project area will be given participation opportunities and preferences. WHY XS THE TOWN CENTER PROJECT AREA CONSIDERED 'BLIGHTED? i ii II The Town Center Project Area was found .to be a blighted area in 1976 when the Town Center Redevelopment Project was originally adopted, the continued redevelopment is necessary to effectuate the public purposes declared under California Community Redevelopment law. Attachment ! Ouestlons & Responses Page ftve gHAT ZS 'THE IIETHO0 THE AGENCY ¥OULD UTZL]ZE 'TO CALCULATE OR ESTABL]SH THE VALUE 0~'"' PROPE Y~'~Y~P .......................... iii i The Agency currently has no speciftc plan or schedule to acqutre property. However, 'tf tn the future a declston ts made to acquire certatn property, the Agency must follow the procedures outlined In State law. Professional independent appraisals wtll be made to determine the fatr market value of property. The owner of a bustness may also be entitled to compensation for loss of goodwill. For more Information, please consult "A Summary of Acquisition and Relocation Procedures Tusttn Redevelopment Agency, 1988.". RESOLUTION NO. 89-26 A RESOLUTION OF" THE CITY. COUNCIL OF THE CITY OF TUSTIN OVERRULING' 'WRITTEN AND ORAL OBJECTIONS AND ADOPTING WRITTEN FINDINGS IN RESPONSE TO WRITTEN OBJECTIONS RECEIVED FROM AFFECTED PROPERTY OWNER.S.AND TAXING ENTITIES AND OVERRULING SUCH WRITTEN OBJECTIONS TO THE PROPO.SED SECOND AMENDMENT TO THE AMENDED REDEVELOPMENT PLAN FOR THE TUSTIN TOWN CENTER AREA REDEVELOPMENT PROJECT WHEREAS, a proposed Second Amendment to the Amended Redevelopment Plan for the Tustin Redevelopment Project has been prepared by the Tustin Community Redevelopment Agency; and WHEREAS, on 'February 21, 1989, a duly noticed joint public hearing on the proposed Second Amendment to the Amended Redevelopment Plan was conducted by the City Council and the Tustin Community Redevelopment Agency; and WHEREAS., any and all persona having any objections to the proposed Second Amendment to the Amended Redevelopment Plan, or [he regularity of the proceedings, were given an opportunity to submit written, comments prior to the commencement of or at the joint public hearing, or tO give oral testimony aL ithe joint public hearing, and 'show cause why 'the proposed Second Amendment to the Amended Redevelopment Plan should not be ado'pLed; and. WHEREAS, the City Council has directed Agency staff to respond to written objections received from affected property owners and taxing entities in detail, giving reasons for not accepting specified objections and suggestions; and the City Council has re~rie'wed such responses; and WHEREAS, the City Council has l~eard and considered all evidence, both written and oral, presented in support ahd in opposition to the adopt/on of the Second Amendment to the Amended Redevelopment Plan for the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin 'as follows: 1. The City Council finds that' all persons have had the opportunity to be heard or to file written objec'Lion to 'the proposed Second Amendment to the Amended Redevelopmen'£ Plan for the Town Center Area Redevelopment Project and to the regularity of the proceedings with regpect to the proposed Second Amendment and having heard and reviewed ~uch ora] and written objections, the City Council hereby makes findings in response to each written objection as set-forth in 'Exhibit "A" and incorporated herein by this reference, and determines that there a~e compelling reasons to just/fy adoption of the Second Amendment as proposed, not withstanding written and oral objec'Li.orm. 2. The City Council and the Tustin Commbnity Redevelopment Agency have duly complied with ail the provisions, requirements and procedures of the California Community Redevelopn_~ent' Law. (Health and Safety Code, Sec'tion 2340. tus/4 021689/bl 33000 .e....t...S..~...Cl....) relating to the .preparation and adoption of an amendment to the Amended Redevelopment Plan for the Town Center Area Redevelopment Project. The City Council, accordingly, overrules any and all objections to the adoption of the Second Amendment to the Amended Redevelopment Plan for 'the Town Center Area Redevelopment Project. PASSED, APPROVED, and ADOPTED this day of , 1989. ATTEST: URSULA KENNEDY, MAYOR CITY OF TUSTIN MARY WYNN, CITY CLERK CITY OF TUSTIN STATE OF CALIFORNIA ) COUNTY OF ORANGE )SS. CITY OF TUSTIN ) I, Mary Wynn, City C].erk of the City of Tu,~tin, California, hereby certify that Resolution was adopted by 'the City of Tustin at a regular meeting' held on the day of , ].989, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: MARY WYNN, CITY CLERK CITY OF TUSTIN [ATTACH WRITTEN OBJECTIONS AND WRITTEN RESPONSES TO THIS RESOLUTION] EXHIBIT A ¥1U:TTE# RESPONSES TO #RITTEN OBJECTIOHS RECEIVED OH THE SECOHD AMENDMENT TO THE AMENDED REDEVELOPMENT PLAN FOR THE TOWN CEHTER REDEVELOPMENT PROJECT AREA Resolution No. 89-26 BACKGROUND Section 33363 of the California Health and Safety Code provides that prior to adopting a redevelopment project, the City Council must make written findings in response to Written objections of affected property owners or taxing entities received on the Plan.' The City Council must also respond in writing to the written objections received describing the disposition of the issues raised and addressing the objections in detail, giving reasons for not accepting certain specified objections and suggestions. The following is a list of written objections received by the Tustin Community Redevelopment Agency concerning the Second Amendment to the Amended Redevelopment Plan for the Town Center Redevelopment Project Area' . Elizabeth M. Dreher (Mrs. M.M. Dreher), dated February 7, 1989 - property owner at 332 Prospect Park North Dennis D. Hayden, Esq. on behalf of Shirley A. Griset and Virginia Stevens, dated February 16, 1989 - property owner of Assessor Parcel No. 500-.101-01 through 05 and 500-102-01 Attached is a summary of each of the above written objections and written responses and findings on each objection. The two written objection letters follow staff written responses. SII¥1ARY OF WRZTTEN OBJECTIONS AND RESPONSES 1. Written Objections: Recetved from Elizabeth Dreher Summary of Objecti,on While Mrs. Dreher does not have a specific objection to the proposed Second Amendment to the Amended Redevelopment for the Town Center Area Redevelopment Project, she indicates her concern about the Agency's potential condemnation of her home. Written. Response../Fi nding The Town Center Area Redevelopment Plan was originally adopted in November, 1976. The original Plan, pursuant to Section 33391 of the California Community Redevelopment Law, authorized the Redevelopment Agency to acquire property In the Redevel-opment Project Area through voluntary acquisition throughout the life of the Plan, or eminent domain for twelve years from the date of adoption. Over the last twelve years, the Agency has used its eminent domain authority only once and ha.s never acquired a residential property in this manner. The Second Amendment to the 'btt A ,, .dlutton No. 89-26 Page two orlgtnal redevelopment: plan ex1:ends 1:his exist:lng emlnent domaln aul:horll:y for an addtl:tonal l:welve years. Eminent domain-has not, been and would not. be used as a method of wholesale property acquisition, but, rather it would be used selectively when there are significant: obstacles 1:o achieving the goals and object:ives of 1:he Agency in its efforts to facilitate improvement, within the Project, Area. However, for those property owners who are desirous of developing or selling t,heir propert,tes for private development,, there would be significant 1:ax advant,ages lost if they were unable to obtain a "friendly" condemnation 1.ett.er from the Agency, thereby potentially inhibiting voluntary Improvement efforts In the Project Area. The Agency fully intends- to continue t.o exercise il:s aul:hority prudent,ly and has no plans or schedule to purchase the subject property or any other property al: this time. For your information, Section 406 of the Amended Redevelopment Plan provides for an owner of a property within the Project Area to apply for a Certificate of Conformance in accordance with the Amended Redevelopment Plan. The issuance of this Certificate by the Agency would permanently ensure that property would not be subject to eminent domain under the Redevelopment Plan. If a request is received from the Prospect Park Homeowner's Assocation, Agency staff is recommending approval of a Certificate of Conformance for Ms. Dreher's property. For the reasons set forth in the foregoing responses to written objections to the adoption of the Second Amendment, the Tustin Redevelopment Agency and City Council of the City of Tustin affirm that adoption of the Second Amendment remains in the best interest of the Project Area and the City at large. Written Objection: and Vtr~flta Stevens Received from Dennls HaYden, Esq. on behalf of Shirley Grtset Summary of Objection Mr. Hayden states in his letter that Ms. Griset and Ms. Stevens wish to be excluded from the plan area and object to the following four provisions of the Second Amendment: !) extension of the Agency's authority to acquire property for an additional 12 years by eminent domain; 2) increasing the limit on the amount of bonded indebtedness that can be outstanding at any one time; 3) restating the tax increment limit; and 4) any action which would authorize Condemnation of their property and deprive them of their right to continue to own and develop the property. Written Response/Finding Responses to each of the above objections are outlined below: As authorized under Section 33391 of the California Community Redevelopment Law, the original Redevelopment Plan for the Town Center Area Project provided for the Agency to acquire property by eminent domain. Pursuant to Section 33333.2 {3) the time limit for commencement of eminent domain proceedings was originally limited to 12 years and is proposed to be extended an additional 12 '~lblt A ~olutton No. 89-26 Page three years tn the Second Amendment. The Agency has determined that retention and extension of. this provision is necessary to continue to effectuate redevelopment of the Project Area. This determination Is based on the fact that the legislature recognized In providing the po~er of emtnent domatn to redevelopment agencies that properties cannot always be acqutred by negotiated purchases and therefore, a property owner or group of property o~ners can frustrate the achievement of the Agency's public purposes. Emtnent domaln has not been and would not be used as a method of wholesale property acquisition, but rather it would be used selectively when there are significant obstacles to achieving the goals and objectives of the Agency In its efforts to facilitate Improvements wtthtn the Project Area. However, for those property o~ners who are desirous of developlng or selling thetr properties for prtvate development, there would be significant tax advantages lost Jf they were unable to obtain a "friendly" condemnation letter from the Agency, thereby potentially Inhibiting voluntary Improvement efforts tn the Project Area. However, tt is important that ~ls. Griset and ~ls. Stevens be aware that over the last 12 years the Tusttn Redevelopment Agency has never acquired real property by endnent domatn In the To~n Center Area Redevelopment Project. The Agency fully tntends to contlnue to exercise 1ts authority prudently and has no plans or schedule to purchase the subject property or any other property at this time. [n addition to the extension of the Agency's eminent domain authority, the Second Amendment also proposes to add a section to the Plan (Section 406) which provides for a property o~ner to apply for a Certificate of Conformance. The Issuance of thts Certificate by the Agency would, subject to the provisions of Section 406 of the Amended Plan, permanently ensure that the subject property would not be acqulred by the Agency through emtnent domain proceedings. ~ls. Grtset and l~s. Stevens would have the rtght to apply for a Certificate of Conformance. The Redevelopment Agency at its meeting on February 6, 1989 also adopted rules governing participation and preferences by property o~ners and business occupants tn the Town Center Project Area. 2. A complete financial analysis of the Second Amendment Is contaJned tn the Agency's Report to City Council, a copy of which is available for public Inspection at the offJce of the Tustin City Clerk. The Agency has determlned that additional publtc improvements to those contained in the origtnal redevelopment plan are needed in the Project Area In order to achieve the revitalization goals and objectives contained in the Plan. Toward thts end, the Agency proposes to add approximately $12 mlllton of addltlonal publtc Improvements. Some of these Improvements ~lnclude: the constructlon of the Tustln Area Sentor Center; street, traffic and water Improvements; expansion/renovation of the Civtc Center; renovation of Peppertree Park; and F ~btt A lutton No. 89-26 Page four additional Improvements to Columbus-Tustin Park. A complete 11st of. spectftc projects Is provided in the proposed 'Amendment and Report to Ctty Council. In order to finance extsttng and future Project costs, the Agency has determined that the bonded Indebtedness 11mtt must be Increased from $20 mtlllon to. $35 mtllton to tnsure that all extsttng and future debts can be financed withtn the parameters of the Amended Redevelopment Plan. If the 11mtt ts not Increased,-the Agency Will be severely hampered tn abtltty to contribute to certatn publlc Improvements wlthtn the Town Center Redevelopment Project ,Area, as extsttng bond debts would have to be paid off prtor to Issuance of more bonds. It is important to note that bonds are patd off wtth tax Increment revenues from within the Town Center Redevelopment Project Area and are not an obligation on the residents of the City or on the Ctty's General Fund. The Redevelopment Plan as amended by the First Amendment currently 11mits the total tax Increment revenue that may be allocated to the Agency over the life of the project to an average of $3 millton per year. Wtth a Project 11re 11mtted to 30 years, the Agency's intended tax increment 11mtt was $90 mtllton. As discussed In detail in the Agency's Report to City Council, the Agency does not propose to tncrease the tax Increment 11mtt, only to restate the tax increment 11mit to prOvtde maximum flexibility to retire outstanding debts and future debts that may be incurred to complete the Project within the existtng (re-stated) tax Increment 11mtt and the 30 year time frame of the plan. . Objection number four is interpreted to be the same as objection number one, therefore, response number one above is applicable to both comments. For the reasons set forth in the foregoing responses to written objections to the adoption of the Second Amendment, the Tustin Redevelopment Agency and City Council of the City of Tustin affirm that adoption of the Second Amendment remains in the best interest of the Project Area and the City at large. 7 February 1989 Ms. Christine Shingleton Direc~r'of Community Development TUSTIN COMMUNITY REDEVELOPMENT AGENCY 300 Centennial Way Tustin, Ca. 92680 Dear Ms. Shingleton: I received your letter of 3 February 1989, via Certified yesterday and I must say I read it with shock and disbelief. My husband and I purchased our home in Prospect Park in Oct- ober of 1968 as a place to spend our last days and now you have the unmitigated gall to advise me that if I do not sell my house to you through a negotiated price, you will have it condemned and take it anyway. What has Tustin turned into ? It sounds more like the Soviet Union I love my small home in Prospect Park not only because it is a very nice place to live, but it holds many happy memories of my life with my now deceased husband, who passed away about six years ago. What do you intend to do with. all this la~d you HOPE to acquire ? Are you going to sell it to developers who in turn will build high-rise .buildings on it, in your greedy hope that these build- ings will generate more tax dollars that you can squander on more high-rise buildings ? Ms. Shingleton, THIS WILL NOT HAPPEN IN MY LIFETIME, of that you may be sure and I am sure the other 39 Homeowners in Prospect Park feel the same way I do. Ail I can say to you is, %hat you and your ~reedy cohorts had better_~get a good attorney because you are going to need him in this misbegotten scheme to take my home away from me. Most sincerely EliZabeth M. Dreher (Mrs. M.M. Dreher) 332 Prospect Park North Tustin, Ca. 92680 cc: Mr.. M. Cibellis President, Prospect Park H.O. Asso. ! DENNIS D. HAYDEN ATTORNEY AT LAW :~014' NORTH BROADWAY SANTA ANA. CALIFORNIA 92706 TELEPHONE (7141.542-3003 " February 16, 1989 RECEIVED r ;,-,., :] _ 7989 CO,%t;,,IL/,'~iT'! DF~'.ELOPMENF' Tustin Community-Redevelopment Agency 300 Centennial Way Tustin, California 92680 City Council City of Tustin 300 Centennial Way Tustin, California 92680 Re: Town Center Area Redevelopment Project Property Owners: Shirley A. Griset and Virginia Stevens Property Located at: Newport Boulevard, Irvine Boulevard and Fourth Street Assessor's Parcel Numbers: 500-101-01 through 05 and 500-102-01 Gentlemen: I am writing on behalf of Shirley Griset and Virginia Stevens the fee owners of the above-described real property which is located in the Northeast corner of the Tustin Town Center Redevelopment Plan Map. - ..... The property has been in the family of the current owners for well over 30 years and is improved with commercial developments under lease to various tenants. The owners learned that a public hearing is scheduled regarding an amendment to the redevelopment plan on Tuesday, February 21, 1989, although they did not receive any notice from the City or the Redevelopment Ag~.ncy of the hearing. This letter is to advise you that the owners have no desire to sell the property ~nd object to the inclusion of the property within the redevelopment plan area. The owners fully intend to continue ownership' of the property and the improvements and management of the same and object strenuously to any plan which would include the possible acquisition of the propert~ by condemnation. ~ ...DE~IIS D. HAYDEN ATTORNI~'Y AT LAW ' Tustin Community Redevelopment Agency and City Council, City of Tustin February 16, 1989 Page Two' Re: Town Center Area Redevelopment Project ' Property Owners: Property Located at: Shirley A. Griset and · Virginia Stevens Newport Boulevard, Irvine Boulevard and Fourth Street Assessor's Parcel Numbers: 500-101-01 through 05 and 500-102-01 The .property is a vital source of support for the owners and in the event of improvement of property in the area in close proximity to theirs, they wish to improve their own property as owners in an appropriate manner which will be beneficial to the neighborhood. In summary, they wish to be excluded from the plan area;'they - - object to any extension of the Agency's authority to acquire property for an additional 12 years; they object to increasing the limit on bonded indebtedness that can be outstanding at any one time; they object to restating the tax increment limit and they particularly and strenuously object to any action which would authorize condemnation of their property and deprive them of their right to continue to own and develop the same. Please"make the objections of .the above owners to the proposed second amendment known to the City Council and the Tustin Redevelopment Agency. DDH/e Very truly yours, ORDINANCE NO. 10~ 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING AND ADOPTING THE SECOND AMENDMENT TO THE AMENDED REDEVELOPMENT PLAN FOR THE TUSTIN TOWN CENTER AREA REDEVELOP- MENT PROJ~ECT WHEREAS, the City Council of the City of Tustin adopted the Redevelopment Plan for the Town Center Area Redevelopment Project ('the "Redevelopment Plan") in November, 1976; and WHEREAS, the City Council has previously amended the Redevelopment Plan once in September, 1981, and as amended the Redevelopment Plan is known as the "Amended Redevelopment Plan"; and WHEREAS, the Tustin Redevelopment Agency (th.e "Agency") has formulated and prepared the proposed Second Amendment to the Amended Redevelopment Plan for the Town Center Area Redevelopment Project; arid WHEREAS, the City Council of 'the City of Tustin has received from ';.he Agency the proposed Second Amendment to the Amended Redevelopment Plan, a copy of which is on file at the office of the City Clerk, 300 Cenkennial Way, Tustin, California, and at the office of the Agency at the same address, together with 'the Report of the Agency on the proposed Second Amendment; and WHEREAS, the Planning Commission of the City of Tustin has submitted to the Ci'~y Council its repor~ and recommendations concerning the propo.~ed Second Amendment to the Amended 'Redevelopment Plan and its certification that 'the Second Amendment to the Amended Redevelopment Plan conforms to the General Plan for the City of Tu'~tin; and WHEREAS, the Agency, on August 15, 1988, held a duly noticed public hearing on the Draft Environmental Impact Report ("EIR"), prepared and circulated for public review and comment in accordance with the California Environmental Quality Act (Public Resources Code Section 21000, ~.t....s....e.....Cl...), the Guideline,~ for intplementation of '[.he California Environmental Quality Act ( 14 California Administrative Code Section 15000, et seq.) arid environmental procedures adopted by the Agency pursuant thereto; and the Draft EIR was thereafter revised and supplemented to incorporate comments received arid responses thereto, and as so [.e'vised and supplemented, a Final EIR was prepared by the Agency; and WHEREAS, the Agency has considered and certified the adequacy of the Final Environmental Impact Report, submitted .pursuant to Public Resources Code Section 21151 and Health and Safety Code Section 33352, and has determined that the redevelopment of 'the Project Area pursuant to '~.he Amended Redevelopment Plan as further amended by the Second Amendment will have significant effects on the environment based upon the impacts identified in Resolution No. 88-14 adopted by the Agency on December 5, 1988, making certain findings regarding 'the environmental impacts of the proposed actions with respect to the Amended Redevelopment Plan as further am. ended by the Second Amendmen. t; and 2340. tus/4 021689/bl WHEREAS, the Agency has by said Resolution No. 88-14 adopted a Statement of Overriding Considerations determining that the benefits of the Second Amendment outweigh the unavoidable adverse environmental effects; and WHEREAS, the City Council and the Agency held a joint public hearing' on February 21,' 1989, on the proposed adoption of the Second Amendment to 'the Amended Redevelopment Plan in the City Council Chambers, 300 Centennial Way, Tustin, California; and WHEREAS, a notice of said hearing was duly and r.egularly published in the ..T.......u.~..i.:i....n..........N....e.,....w......s.., a newspaper of general circulation in the City of Tustin, once a week for four successive weeks prior to the date of said hearing, arid a copy of said notices and affidavits of publication are on file with the Ci$.y Clerk and the Agency; and WHEREAS, copies of the notice of joint public hearing were mailed by reft, tried mail with return receipt requested to the last known address of each assessee as shown on the last equalized assessment roll of the County of Orange of each parcel of land in the Project Area; and WHEREAS,. copies of the notice of joint public hearing were mailed by certified niail return receipt requested 'to the governing body of each i, axing agency which receives taxes from property in the Project Area, and to the last known assessee of each parcel in the Project Area; and notices were also mailed to community organizations, business tenants and posted in accessible locations for notice to the general public from the Agency; and WHEREAS, the City Council has evaluated the report of the Agency, the proposed Second Amendment to the Amended Redevelopment Plan, and 'the Final Environmental Impact Report, has provided an opportunity for all persons to be heard, and has received and considered all evidence and testimony presented for · or against any and all aspects of the Second Amendment and has made written findings in response ko each written objection of an affected property owner or taxing entity; and WHEREAS, all actions re quired by law have been 'taken by all appropriate public bodies; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN DOES HEREBY ORDAIN AS FOLI,OWS: .$..e..c..~.i...o...n.........!... Th~ legal description, of the boundaries of . the Redevelopm. ent Project is contained in Instrument No. 36603, book 11976, pages 35- 48 of Official Records recorded on November 29, ~976, in the office of' the Coun~,y Recorder of Orange County, California. .S..e...c....t..i..o...n.........2... The purposes and intent of the City Council with respect to '{.he Project area are and continue to be: ' 1) to create a mixed use '~.own center area that combines commercial, office, residential, and public uses which will serve the needs of the community as well as encourage the healthy growth of the town center area; to improve traffic circulation and access in the town center area as a means of reducing congestion, encouraging business development, attracting new customers to the area, alleviating pa~s-through traffic congestion and conflict, and improving safety; 3) 4) to revitalize and develop amenities in the Project area, both publicly and privately financed, as a means of aiding the revitalization of the E1 Camino Real section in particular; to increase 'the level of capital improvement~ such as the development of Columbus-Tustin Park, parking facilities, sidewalk and street landscaping, street im'provemen'~.s and related public improvemen-~ projects; .6) to impro've controlled development o.f ~he area to aid in t. he harmonious and efficient development of the redevelopment area; and 6) to encourage residential development by actively seeking private development in the redeve].opmen~ area. ..S....e..q..tj.p..n.......,3., It hereby is determined that the Second Amendment submitted by the Agency is necessary and desirable, ..S...e...,.q.~'.i..q.n......4... The Second Amendment is incorporated herein by this reference and nmde a part .hereof as if fully set forth at length herein. The Amended Redevelopment Plan for the Tustin Town Center Area Redevelopment Project, as amended hereby, shah continue to be referred to as the Amended Redevelopment Plan. .S...e....q.t...i..o....n.....5... Ordinance No. 701 and the Redevelopment Plan adopted pursuant thereto as the official Redevelopment Plan for the Town Center Area Redevelopment Project, as amended by Ordinance No. 855, are hereby amended by the Second Amendment so that the Redevelopment Plan adopted by Ordinance No. 701, and amended by Ordinance No. 855, 'is replaced by the Amended Redevelopment Plan as further amended by the Second Amendment. ..~..e....c..~.~.q..n.......6... All written and oral objections to the Second Amendment to tb.e Amended Redevelopment Plan for the Town Center Area Redevelopment Project have been overr'uled by Resolution No. 89-26 adopted by this City Council on rlarch 6 , 1989. ..S....e...c..t...i:q..n.......7... The Amended Redevelopment Plan as further amended by the Second Amendment is hereby approved, adopted and designated as the official Redevelopment Plan for 'the Town Center Area Rede'velopment Project and s~ict Amended Redevelopment Plan as further amended by the Second Amendment is · incorporated herein by this reference and made a part hereof aa if fully ~et for'th herein. Section 8. The City Council hereby finds and determines, based on subs_tantia]. ~'X~a'~'~ .... in the record, including, but not limited-to, the 'Agency's Report to {he Tustin Ci~,y Council on the Proposed' Second Amendment to the Amended Redevelopment Plan for the Town Center Area Redevelopment Project, and all documents referenced therein, and evidence and testimony received at 'the joint public hearing on adoption of the Second Amendment to the Amended Redevelopment Plan held'on February 21, 1989, that: a) The Project Area has been found to be a blighted area in Ordinance No. 701 adopted by the Ci't'y Co,~ncil on November 22, 1976, the corJtinued redevelopment of which is necessary to effectuate 'the public purposes declared in the California Community Rede'velopment Law (Health and Safety Code Section 33000 p.t.....s.....e.....q....). b) The adoption of the Second Amendment will assist in the redevelopment of the Project Area in conformit'y with *.he Community Redevelopment I,aw of the State of California and in the interest of the public peace, health, safety and welfare. This finding in based on the fact that the Second Amendment provides for the installation of new, or the replacement or rehabilitation of existing public improvements, Pacilities and utilities tn areas which are currently inadequately served in regard 'to such improvements, facilities and utilities. c) The adoption and carrying out of the Amended Redevelopment Plan as further amemded by the Second Amendment is economically sound and feasible. This finding is based on the fact that the limit on the bonded indebtedness that can be outstanding at any one time has been raised to. $35 million to in,~ure that all existing and future debts can be financed within the parameters of the Amended Redevelopment Plan. d) The Second Amendment conforms to 'the General Plan of the City of Tustin. This finding is based on the finding of the Planning Commission that 'the Second Amendment conforms 'to the General Plan of the Cit'y of Tustin. e) The carrying out of the Second A-mendment wi].l promote the public peace, health, safety and 'welfare of the City of Tustin and will effectuate the Amended Redevelopment Plan and the purposes and policies of the Community Redevelopment Law of 'the State of California. Thin 'finding in based on ~he fac~ that the Second Amendment will benefit the Project Area by providing for the installation, of new and the rehabilitation or replacement of existing public improvements, facilities and utilities, thus helping to eliminate blighted conditions and encouraging further growth and development in conformit'y with ~.he objectives of the Amended Redevelopment Plan. f) The condemnation of real property, (the time period during which it may be exercised is extended in 'the Second Amendment to the 'Amended Redevelopment Plan) is necessary to the execution of the Am. ended Redevek)pment Plan, and adequate provisions have been made for the. payment for property to be acquired as provided for by law. g) The Agency has a feasible method and plan. for 'the relocation of families and persons who might be displaced, temporarily or permanently from housing facilities in the Project Area. This finding is based upon the fact 'that the Amended Redevelopment Plan provides for. relocation assistance according to law and' the fact that such assistance, including, r'elocatior~-' payments, constitutes a feasible method for relocation. · h) There are, or are being provided, within the Project Area or within other areas not, generally less desirable with regard to public utilities and public and commercial facilities arid at rents or prices, within the financial, means of ~,he families and persons who might be displaced from the Project Area, decent,, safe and sanitary dwellings equal in number to the number of and available to such displaced families and persons and reasonably accessible to 'their places of employment. This finding is based upon the fact that rio persori or family will be required to move from any dwelling unit until s~,itable replacement housing is available for occupancy, and that such housing must meet 'the standards established in State law and regulations. i) The Second Amendment enhances and strengthens the safeguards contained irt the Amended Redevelopment Plan Lo assure ~hat ~he work of redevelopment wiI1 be carried out pursuant to the Amended Redevelopment Plan. j) The effect of tax increment financing, as contained in t.he Second Amendment, will not cause a significant financial burden or detriment on any taxing agency deriving revenues from the Town Center' Area Redevelopment Project. This finding is based on the facts that: 1) 'the limit on the total tax increment, revenue thak may be allocated to the Agency o'ver the life of t, he Project bas only been re-stated from $3 million annually over 'the 30 year life of the Project to $90 million over 'the life of the Project; and 2) all affected taxing agencies were given the opportunity to consult with the Agency on the fiscal impact of the Project as provided by the Community Redevelopment [,aw Section 33328 and such affected taxing agencies either choose not to do so or stated that there 'was no fiscal impact. .S.....e..q.t..i...o...n.........~. In order Lo implement arid facilitate the effec~uation of the Amended Redevelopment Plan as further amended by the Second Amendment certair~ official actions must be taken by the City Council; accordingly the City Council hereby: i) pledges its cooperation 'in helping to carry out such Second Amendment; ii) requests the various officials, department, boards and agencies of the City of Tustin having administrative responsibili'ties in '~,he Project Area likewise to cooperate to such end arid to exercise their respective functions and powers in a manner 'consistent with ,said Second Amendment; and iii) stands ready to consider arid take appropriate action on proposals and measures clesigned to effectuate the Second Amendment. Section ].0. Thai certain document entitled "Final Environmental Impact Report, Second Amendment to the Redevelopment Plan for Town Center Area Redevelopment Project," a copy of which is on file in the office of the Agency, and in the office of tb.e City Clerk, having been duly reviewed arid considered, and Resolution No. 88-126, adopted by the City Council on December 5, 1989 making qertain findings regarding the environmental impacts of the proposed actions with respect to the Second Amendment and adopting a Statement of Overriding Considerations, are hereb~ incorporated into this Ordinance bY reference and made a part hereof. All activit, ies undertaken by the Agency and/or the City of Tustin pursuant to or in implementation of the Amended Redevelopment Plan as further amended by the Second Amendment shall be undertaken in accordance with 't, he mitigation measures set forth in the said Final Environmental Impact Report. Section 11. Ordinance Nos. 701 and 8.55 shall remain in full .force and effect except 'to the extent changed by this amending ordinance. .~.e...q-..t..i...0..n..........1....2... The City Clerk hereby is directed to send a certified copy of this ordinance to the Agency and 'the Agency hereby is vested wi~h the responsibility for carrying out the Amended Redevelopment Plan as further amended by the Second Amendment for the Town Center Area Redevelopment Project. ..S.....e...c.!..ig...!~....._!..3... The City Clerk hereby is direc'ked to record with the County Recorder of Orange County a description of the land within the Project Area and a statement [,hat the Redevelopment Plan for the Town Center Area Redevelopment Project has been amended, and that redevelopment proceedings for the redevelopment of ~he Project Area pursuant to the Amended Redevelopment Plan have been instituted arid are continuing under the California Community Redevelopment Law. .S..e,....c...t..i...0...!!._...!....4.. If any part of this ordir~an, ce or the Second Amendmer,.t which it approves is held to be invalid for any reason, such decision shah not affect the validity of the remaining portion of this ordinance or of the Second Amendment, and this Council hereby declares .'that it would have passed the remainder of the ocdinance or approved-the remainder of the Second Amendment if such invalid portion thereof had been deleted. .. .~.~.~..~q.......~.~. This ordinance shall take effect thirty (30) days after its final passage and within fifteen (15) days after its passage, the City Clerk shall cause i~ to be published in the .~.~.~.~'~.q.......N.P.~.~, a newspaper of general circulation in ~he City of Tustin, and hereby designated for that purpose. PASSED, APPROVED, and-ADOPTED this day of , 1989. ATTEST: MAYOR CITY OF TUSTIN MARY WYNN, CITY CLERK CITY OF TUSTIN STATE OF CALIFORNIA ) COUNTY OF ORANGE )SS. CITY OF TUSTIN ) I, MARY 'WYNN, City Clerk of the City of .Tustin, California, hereby certify that Ordinance No. was adop'~ed by the City Council of t. he City of Tustin at a regular meeting held on the day of , 1989, and that the same was adopted by the following vote: AYES: · NOES: ABSENT: ABSTAIN: MARY WYNN, CITY CLERK CITY OF TUSTIN