HomeMy WebLinkAboutRDA AB 265 12-16-85DATE:
..... REDEVELOPMENT AGENCY
NO. 8
~.~. 12.-16-85
Inter- Com
December 10, 1985
TO:
FROM:
SU BJ ECT:
The Honorable Chairman and Members of the Redevelopment Agency
Community Development Department
Recently Enacted Legislation--AB 265
RECOMMENDATION
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 this 20% set aside requirement. The new legislation requires
that all projects, regardless of their adoption date, comply with the
requirement.
The legislation recognizes that, in 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, 1986.
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
Memorandum--Page 2
December 10, 1985
and activities, on which there is evidence of an intent to carry out the
projects, programs or activities, prior to January 1, 1986.
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 Obligations and Existing Projects and
Programs for the Town Center Redevelopment Project.
Prior to September 1, 1986, the list of obligations, projects and programs
will be readopted in as much specificity as is possible at that time.
Re de ve lop(.~ent Consultant
Community Development Department
DRAFT RESOLUTION
RESOLUTION
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
TUSTIN ADOPTING A STATEMENT OF EXISTING OBLIGATIONS AND
A STATEMENT OF EXISTING PUBLIC AND PRIVATE PROJECTS,
PROGRAMS AND ACTIVITIES FOR THE DOWNTOWN REDEVELOPMENT
PROJECT
WHEREAS, the Redevelopment Plan ("Redevelopment Plan") for the Town
Center Project ("Project") in the City of Tustin k vas ~pproved and adopted by
the City Council of the City of Tustin on ///~/'Ty~by Ordinance No.
WHEREAS, Section 33334.6(c) of the California Community Redevelopment
Law (Health and Safety Code, Section 33000 et. seq.)* 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 ("Existing Obligations") which Existing Obl.igations are contained in
a Statement of Existing Obligations adopted by resolution of the Agency
prior to September 1, 1986; 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;
*All references herein are to the California Health and Safety Code.
NOW, THEREFORE, THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY (hereinafter
referred to as the "Agency") in order to effectuate and complete the Town
Center Redevelopment Plan, in a timely and orderly manner hereby:
1) Sets forth and approves the specific projects, programs and
activities required to complete the Redevelopment Plan in a timely and
orderly manner;
2) Pledges its intent to carry out such projects, programs and
activities; and
3) Stands ready to consider and take appropriate actions on these
projects, programs and activities as necessary to implement the
Redevelopment Plan in accordance with all actions required by law;
NOW, THEREFORE, THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY does hereby
resolve as follows:
Section 1. The Statement of Existing Obligations, attached hereto as
Exhibit A and incorporated herein, is hereby found and determined to be
complete listing of the Existing Obligations incurred by the Agency prior to
January 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 net proceeds of such obligations are used to refinance any
of the Existing Obligations contained in Exhibit A.
Section 2. The Statement of Existing Programs, attached hereto as
Exhibit B and incorporated herein, is hereby found and determined to be a
complete listing of the Town Center Redevelopment 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
day of , 1986.
APPROVED:
CHAIRMAN
ATTEST:
SECRETARY
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 Co.u~unity RedeveloFment
Agency Town Center Area
Redevelopment Project Tax
Allocation Bonds -
Series 1982 $22,404,147
$933,506
l/l/06
(List each obligation
information shown in
headings.)
and provide the
the above column
EXHIBIT "B"
STATEMENT OF EXISTING PROGRAMS
Town Center Redevelopment Project
I. PRIVATE PROJECT, PROGRAM, OR ACTIVITY
II.
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.
2. 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.
3. 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).
PUBLIC PROJECT, PROGRAM OR ACTIVITY
1. The five year capital improvement program budget adopted for fiscal
year 1985-86, totalling $1,880,100.
2. Undetermined costs associated with street improvement plans
recommended by the Planning Commission in conjunction with the First
Street Specific Plan.
3. 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.
6. The commtttment of Agency funds to the expansion of civic center
facilities as recommended by space needs study commissioned by the
Agency.
7. Formulation and implementation of a multi-phase strategy plan for the
redevelopment of the downtown business district.
Community Development Department
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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 THE 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, 1:986; 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 required 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 January 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 day of · 198 .
APPROVED:
C~ AIRMAN
ATTEST:
SECRETARY
Exhibit A
STATEMENT OF EXISTING OBLIGATIONS
Town Center Redevelopment Project
Description of
Existin~ Obligations
Total Amounts
of Obligations
Annual
Payments
Date Obligations
Will Be Discharged
Tustin Co.m~anity Redevelopment
Agency Town Center Area
Redevelopment Project Tax
Allocation Bonds -
Series 1982 $22,404,147
$933,506
1/1/06
(List each obligation
information shown tn
headings.)
and provide the
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 area (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.
"Policy of the Redevelopment Agency for the Allocation of Housing
Assistance Funds" as adopted on January 7, 1985.
Agency participation in the construction and operation of a Senior
Citizens Center.
The commtttment 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