HomeMy WebLinkAboutRDA COMPLIANCE AB 265 08-18-86AGE ....
~I ~ J~ 8-18-86
Inter- Corn
DATE: AUGUST 18, 1986
REDEVELOPMENT AGENCY
NO. 4 - PUBLIC HEARING
TO:
FROM:
SUBJECT:
WILLIA~ A. HUSTON, CITY MANAGER
COWMONITY DEVELOPME#T DEPARTMENT
COINPLIANCE WITH AB 265 CONCERNING 'SET-ASIDE' FUNDS FOR
LOW/MODERATE INCOWE HOUSING
RECOI~ENDATION:
That the Redevelopment Agency adopt Resolutions RDA 86-10 and RDA 86-11 adopting
statements of existing obligations and programs of the Town Center Redevelopment
Project Area.
BACKGROUND:
As outlined in the attached report from Marilyn Whisenand, Redevelopment
Consultant, if the Agency wishes to deposit less than twenty percent (20%) of
the Town Center Project's tax increment into a fund for low/moderate income
housing certain actions must be taken. The first step in this procedure was
accommplished on December 16, 1985 by the adoption of Resolution No. RDA 85-18.
On August 4, 1986 the second required step in the process was achieved when the
City Council and State Department of Housing and Community Development were
forwarded copies of draft Resolutions RDA 86-10 and RDA 86-11. At the writing
of this report no comments from either body have been received by the Community
Development Department.
At this time one final action of the Redevelopment Agency is required. Pursuant
to AB 265, the Agency must adopt statements of existing programs and obligations
(as established prior to January 1, 1986) following a public hearing relating to
said statements.
DISCUSSION:
Submitted for Agency consideration are Resolutions RDA 86-10 and RDA 86-11
listing existing obligations and programs of the Town Center Project Area.
Adoption of these resolutions will enable the Agency to deposit less than the
Ctty Counctl Report
AB 265
page 1:~o
Acting Senior Planner
required 20% of tax increment received into a fund for low/moderate income
housing. Accordingly, if the Agency desires to deposit less than the 20[
set-aside required, it is recommended that Resolutions RDA 86-10 and RDA 86-11
be adopted as drafted.
ROBERT W. BALEN,
Planning Consultant
JD:do
.Attach:
Draft Resolution RDA 86-10 and RDA 86-11
Staff Report of 12/10/85 '
Adopted Res. No. RDA 85-18
Community Development Department
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RESOLUTION NO. RDA 86-10
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF TUSTIN, CALIFORNIA, ADOPTING A
STATEMENT OF EXISTING OBLIGATIONS FOR THE TOWN CENTER
PROJECT
The Community Redevelopment Agency of the City of Tustin, California
hereby resolves as follows:
That the Agency is engaged in activities necessary .and
appropriate to carry out the Redevelopment Plan for the Town
Center Project Area; and
Be
That in order to carry out the orderly completion of the Town
Center Redevelopment Plan, the Agency has heretofore 'approved
certain specific public and private projects as hereinafter
described in various resolutions, agreements, and related
documents which are legally binding obligations of the Agency;
and
That the Agency desires to deposit less than the tax increment
amount provided for in Section 33334.6 of the California
Community Redevelopment Law into a Low and Moderate Income
Housing Fund established for the Town Center Redevelopment
Project, as a result of previous obligations incurred by the
Agency in implementing the Redevelopment Plan in order to
provide for the orderly and timely implementation of the Town
Center Redevelopment Project; and
That the Agency hereby approves this Statement of Existing
Obligations which obligations existed prior to January 1, 1986
and were incurred in the implementation of the Town Center
Redevelopment Project; and
That the Agency believes that the redevelopment pursuant to the
Redevelopment Plan continues to be and is in the best interests
of the City of Tustin and the health, safety, morals and welfare
of its residents, and in accord with the public purposes and
provisions of applicable State and local law and requirements.
The following obligations of the Community Redevelopment Agency of
the City of Tustin, California, incurred in relation to the Town
Center Redevelopment Project are:
A. Town Center Tax Allocations Bonds, Series 1982.
1. Date of Obligation:
2. Amount:
3. Annual Payments:
4. Date of Discharge:
November 1, 1982
$22,404,147
$ 933,506
January 1, 2006
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RDA Resolution No. 86-10
page two
B. Owner Participation Agreement/Carver Development
1. Date of Obligation:
2. Amount:
3. Annual Payments:
4. Date of Discharge:
December 18, 1985
$ 439,069
Not applicable
365 days after commencement of
construction
C. Tustin Ranch Road (Jamboree) I-5 Interchange.
1. Date of Obligation:
2. Amount:
3. Annual Payments:
4. Date of Discharge:
August 20, 1984
$ 500,000
Not applicable
July 1986
Undetermined amount of funds required to implement projects
approved prior to January 1, t986.
E. Owner Participation Agreement/Burnett Ehline
1. Date of Obligation:
2. Amount:
3. Annual Payments:
4. Date of Discharge:
July 1, 1985
$ 36,000
Not applicable
Upon project completion
(Estimated Nov. 1986)
III. The Secretary is authorized and directed to send a copy of this
Resolution to the Department of Housing and Community Development.
PASSED AND ADOPTED at a regular meeting of the Tustin Community
Redevelopment Agency held on the. day of
, 1986.
DONALD J. SALTARELLI,
Chairman
MARY E. WYNN,
Secretary
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RESOLUTION NO. RDA 86-11
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF TUSTIN, CALIFORNIA, ADOPTING A STATEMENT OF EXISTING
PROGRAMS FOR THE TOWN CENTER REDEVELOPMENT PROJECT AREA
The Community Redevelopment Agency of the City of Tusttn, California
hereby resolves as follows:
Ae
That the Agency of the City of Tustin is engaged in activities
necessary and appropriate to carry out the Redevelopment Plan
for the Town Center Project area; and
That the Agency desires to deposit less than the tax increment
amount provided for in Section 33334.6 of the California
Community Redevelopment Law into a Low and Moderate Income
Housing Fund as a result of the obligations it has approved in
connection with various projects, programs and activities in
order to provide for the orderly and timely completion of the
Redevelopment Plan as it existed prior to January 1, 1986; and
Ce
That in order to carry out the orderly completion of the
Redevelopment Plan the Agency has heretofor approved certain
specific public and private projects, programs and activities,
as hereinafter described which constitute evidence of the
Agency's intent to implement the Redevelopment Plan; and
De
That the Agency believes that the redevelopment pursuant to the
Town Center Redevelopment Plan continues to be and is in the
best interests of the City of Tustin and the health, safety,
morals and welfare of its residents, and in accord with the
public purposes and provisions of applicable State and local law
and requirements.
The following projects, programs and activities approved prior to
January 1, 1986, by the Community Redevelopment Agency of the City of
Tustin, California, in connection with the Town Center Redevelopment
Project are:
Ae
Potential expansion and rfenovatton of commercial centers to
include: expansion of existing lease space; construction of new,
mixed use, structures; construction of parking structure{s); and
the possible abandonment of public streets; Agency assistance
may be required for construction of necessary off-site
improvements or other financing assistance and restoration and
expansion of an adjacent residential apartment complex.
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Resolution No. RDA 86-11
page two
Be
Owner Participation Agreement, as approved, committing $439,000
for off-site improvements required in conjunction with the
development of a 130,000 + square foot retail/office complex
within the Town Center Proje--ct area {Carver Development).
C. The five year capital improvement program budget adopted for
fiscal year 1985-86, totalling $1,880,100.
O. Undetermined costs associated with street improvement plans
recommended by the Planning Commission in conjunction with the
First Street Specific Plan.
E. Negotiations underway for acquisition of real property within
the project area for the purposes of redevelopment of
non-conforming structures and sites. Such acquisition is
consistent with the goals and objectives of the adopted
Redevelopment Plan.
"Policy of the Redevelopment Agency for the Allocation of
Housing Assistance Funds" as adopted on January 7, 1985.
G. Agency participation in the construction and operation of a
Senior Citizens Center.
The committment of Agency funds to the expansion of civic center
facilities as recommended by -space needs study commissioned by
the Agency.
Formulation and implementation of a multi-phase strategy plan
for the redevelopment of the downtown business district.
Owner Participation Agreement, as approved, committing $36,000
for improvements required in conjunction with the Plaza
LaFayette Project (Newport at Irvine).
III. The Secretary is authorized and directed to send a copy of this
Resolution to the Department of Housing and Community Development.
PASSED AND ADOPTED at a regular meeting of the Redevelopment Agency held on
the day of , 1986.
DONALD J. SALTARELLI
Chairman
MARY E. WYNN
Secretary
REDEVELOPMENT AGENCY
TO:
FROM:
$ U BJ ECT:
The Honorable Chairman and Members of the Redevelopment Agency
Community Development Department
Recently Enacted Legislation--AB 265
RECOIqqENDATION
It is recommended that the Redevelopment Agency adopt a resolution approving
and adopting a Statement of Existing Obligations and a Statement of Existing
Programs for the Town Center Redevelopment Project area.
·BACKGROUND
The State Legislature has passed and the Governor has signed AB 265
(Hughes). This new statute requires that all redevelopment agencies set
aside twenty percent (20%) of their tax increment for the purpose of
increasing and improving the supply of low and moderate income housing
within redevelopment projects. Previously, this 20% set aside provision
applied only to redevelopment projects adopted subsequent to 1977. Since
the Town Center Project was adopted prior to 1977, it has not, to date, been
subject to tht's 20% set aside requirement. The new legislation requires
that all projects, regardless of their adoption date, comply with the
requirement.
The legislation recognizes that, ih certain project areas, pre-existing
obligations and programs could render the 20% set aside infeasible. Thus,
the statute allows an agency to set aside less than the 20% if it can show a
need to use all or a portion of the 20% set aside funds to carry out
existing projects or programs. However, if an agency wishes to set aside
less than the 20%, it must take certain actions prior to January 1, I986.
The legislation states that an agency may deposit less than the 20% required
set aside if, in any fiscal year prior to 1996, the agency finds:
(a) that all or a portion of these funds are needed to meet existing
obligations, that is obligations incurred prior to January 1, 1986; or
(b) that all or a portion of these funds are necessary to provide for
the orderly and timely completion of public and private projects, programs
FILE COPY
Hemorandum--Page 2
December 10, 1985
and activities, on which there is evidence of an tntent to carry out the
projects, programs or activities, prior to January 1, [986,
In order to utilize the exceptions listed above, the agency must also
approve, prior to September 1, 1986, by resolution, a Statement of Existing
Obligations or a Statement of Existing Programs, or both. The existing
obligations, projects or programs approved prior to September 1, 1986 by
resolution, must have been "intended" by the Agency prior to January 1,
1986.
In order to meet the requirements of AB 265, a resolution has been prepared
adopting a Statement of Existing Dbligattons and Existing Projects and
Programs for the Town Center Redevelopment Project.
Prior to September 1, [986, the list of obligations, projects and programs
will be readopted in as much specificity as is possible at that time.
Re deve lo~'.~ent Consultant
~ Community Development Depaumeni J
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RESOLUTION NO. _~
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TUSTIN COMMUNITY REDEVELOPMENT AGENCY ADOPTING A
STATEMENT OF EXISTING OBLIGATIONS AND. A STATEMENT
OF EXISTING PUBLIC AND PRIVATE PROJECTS, PROGRAMS
AND ACTIVITIES FOR TEE TOWN CENTER REDEVELOPMENT
PROJECT
WHEREAS, the Redevelopment Plan ("Redevelopment Plan") for
the Town Center Project ("Project") in the City of Tustin was
approved and adopted by the City Council of the City of Tustin on
November 22, 1976 by Ordinance No. 701.
WHEREAS, Section 33334.6(c) of the California Health and
Safety Code provides that unless the Redevelopment Agency, by
resolution, makes one of the findings described in paragraphs '(1)
to (3) inclusive of subdivision (a) of Section 33334.2, not less
than 20 percent of the Project tax increment revenues allocated to
the Agency pursuant to Section 33670 for the 1985-86 fiscal year
and each succeeding fiscal year shall be deposited into a Low and
Moderate Income Housing Fund for the Project established pursuant
to Section 33334.3 to be used to the purposes set forth in Section
33334.2, except that:
(A) In any fiscal year, the Agency may deposit less than 20
percent of such prOject tax increment revenues into the Project Low
and Moderate Income Housing Fund if the Agency finds that the
difference between the amount deposited (20 percent of Project tax
increment revenues) is necessary to make payments of amounts due or
required to be committed, set aside, or reserved by the Agency
during the Fiscal Year under existing obligations incurred by the
Agency to finance or refinance, in whole or in part, the Project
which existing obligations are contained in a statement of existing
obligations adopted by resolution of the Agency prior to September
1, ]0986; and
(B) In each fiscal year prior to July 1, 1996, the Agency
may deposit less than the amount required to be deposited (20
percent of Project tax increment revenues, less payments of amounts
due or required to be committed, set aside or reserved during the
fiscal year under the existing obligations) into the Low and
Moderate Income Housing Fund if the Agency finds that the deposit
of such less amount is necessary in order to provide for the
orderly and timely completion of public and private projects,
programs or activities approved by the Agency prior to January 1,
1986 and which are contained in a statement of existing programs
adopted by resolution of the Agency prior to September 1, 1986.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE TUSTIN COM-
MUNITY REDEVELOPMENT AGENCY in order to effectuate and complete the
Project in a timely and orderly manner hereby:
1. Finds that the existing obligations, the specific pro-
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jects, programs and activities set forth in Exhibit "A" attached
hereto (the existing obligations) and Exhibit "B" attached hereto
(the Existing Programs) are req'uired to complete the Project.
2. The statement of existing obligations is hereby found
and determined to be a complete listing of the existing obligations
incurred by the Agency prior to Januar.y 1, 1986 to finance or
refinance, in whole or in part, the Town Center Redevelopment
Project, and such Statement is hereby approved and adopted. Any
Project obligations incurred by the Agency on or after January 1,
1986 shall be deemed to be existing obligations as if set forth in
Exhibit "A", if the proceeds of such obligations are used to
finance or refinance any of the existing obligations contained in
Exhibit "A".
3. The statement of Existing Programs is hereby found and
determined to be a complete listing of the Town Center Redevel-
opment Project's projects, programs and activities approved by the
Agency prior to January 1, 1986, which must be orderly and timely
completed, and such statement is hereby approved and adopted.
PASSED, APPROVED AND ADOPTED this
Decem§er . , 198 5 .
16~h___ day of
APPROVED:
C~% IRMAN
Exhibit A
STATEMENT OF EXISTING OBLIGATIONS
Town Center Redevelopment Project
Description of
Existing Obligations
Total Amounts
of Obligations
Annual
Payments
Date Obligations
Will Be Discharged
Tustin Com,~nity Redevelopment
Agency Town Center Area
Pedevelopmen~ Project Tax
Allocation Bonds -
Series 1982 $ 22,404,147
$933,506
l/l/06
(List each obligation and
information shown in the
headings.)
provide the
above column
EXHIBIT "B"
STATEMENT OF EXISTING PROGRAMS
Town Center Redevelopment Project
I. PRIVATE PROJECT, PROGRAM, OR ACTIVITY
Potential expansion of the Courtyard Shopping Center to include:
expansion of existing lease space; construction of new, mixed use,
structures; construction of parking structure(s); and the possible
abandonment of Holt Avenue. Agency assistance may be required for
construction Of necessary off-site improvements or other financing
assistance.
Potential expansion and renovation of Lucky Shopping Center located at
13224 Newport Avenue which will include a complete upgrading of
building facades; the addition of leasable retail shopping area; the
improvement and covering of an existing flood control channel; and
restoration and expansion of an adjacent residential, apartment
complex. A strong potential exists for the use of an Industrial
Development Bond program supported by the Agency.
Owner Participation Agreement, as approved, committing $439,000 for
off-site improvements required in conjunction with the development of
a 130,000 + square foot retail/office complex within the Town Center
Project ar~ (Carver Development).
II. PUBLIC PROJECT, PROGRAM OR ACTIVITY
The five year capital improvement program budget adopted for fiscal
year 1985-86, totalling $1,880,100.
Undetermined costs associated with street improvement plans
recommended by the Planning Commission in conjunction with the First
Street Specific Plan.
Negotiations are underway for acquisition of real-property within the
project area for the purposes of redevelopment of non-conforming
structures and sites, i.e., the car wash site at 535 Main St. Such
acquisition is consistent with the goals and objectives of the adopted
Redevelopment Plan.
4. "Policy of the Redevelopment Agency for the Allocation of Housing
Assistance Funds" as adopted on January 7, 1985.
5. Agency participation in the construction and operation of a Senior
Citizens Center.
The committment of Agency funds to the expansion of civic center
facilities as recommended by space needs study commissioned by the
Agency.
Formulation and implementation of a multi-phase strategy plan for the
redevelopment of the downtown business district.
Community Development Department
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF llJSTIN )
MARY E. WYNN, City Clerk and Secretary Clerk of the Community Redevelopment
Agency of the City of Tustin, California, does hereby certify that the whole num-
ber of the members of the City Council as the Community Redevelopment Agency is
five; that the above and foregoing Resolution No. RDA 8B-18 was duly and
regularly introduced, passed and adopted at a regular meeting of the City Council
as the Community Redevelopment Agency held on the 16th day of December, 1985, by
the following vote:
AYES :
NOES :
ABSENT:
COUNCILPERSONS:
COUNCILPERSONS:
COUNCILPERSONS:
Edgar, Greinke, Hoesterey, Kennedy, Saltarelli
None
NOne
E.~YN*~'~ ~-ler~Secre
MARY N, (~y C tary Clerk
City of Tustin, California