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HomeMy WebLinkAboutRDA TAX ALLOC BOND 12-06-82 , 3 ~ 12-6-82 ~ -~ NO. 5 Inter-Corn Dec. 1, 1982 ~ DATE REDEVELOPMENT AGENCY TO: FROM: SUBJECT: REDEVELOPMENT AGENCY BILL HUSTON, EXECUTIVE DIRECTOR IMPLEMENTATION OF TAX ALLOCATION BOND PROGRAM At its last meeting, the Agency directed staff to outline the steps required to implement the projects to be funded from the proceeds of the tax allocation bonds. Staff is presently working with the Agency's Bond Counsel in executing the required documents prior to the closing date of December 14, 1982 at which time the bonds will be delivered to Merrill Lynch and the Agency will receive its funds. Listed below are the projects to be funded through the bond program and the elements to be considered by the Agency in determining its implementation schedule. The Agency is required to obligate 85% of the bond proceeds within three years and obligate at least $100,000 of the proceeds by June 14, 1983. Land Acquisition ($1,960,000) The intent of Agency is to acquire land within the Project Area which currently is not utilized at its highest and best use. Property acquired will be sold for private development through negotiated sales, including the use of developer disposition agreements. The purpose of land acquisition is to facilitate private commercial development consistent with the goals and objectives of the Agency's Project Area Plan. There are three key elements which should be considered by the Agency: (1) the type of development it feels appropriate; (2) timing of a development to be facilitated by the Agency and {3) market feasibility. The Agency should consider land acquisition in the context of causing development to occur consistent with its goals and what reasonably can be expected to happen given market conditions. In otherwords, the Agency would not want to acquire land which has no or little chance of being commercially developed even with the Agency's financial participation. The Agency needs to assess what it wants to happen in the Project Area which provides the framework within which development opportunities and specific sites can be identified. The next step would be preparation of appraisals and negotiations with the property owners. The Agency must also proceed in a fashion consistent with the Town Center Project Area Plan which, for example, affords owners of property in the Project Area the opportunity to participate in redevelopment activities. Agency staff and the City Attorney are preparing a summary of the provisions of the Town Center Project Area Plan which must be considered by the Agency before acquiring and disposing of land. It is important that the Agency acquire land in a fashion that avoids tying up its funds for a prolonged period of time and not having the flexibility to facilitate a viable project when the opportunity arises. Consideration should also be given to retaining a consultant qualified to assess market feasibility and seek out developments which the Agency wants. Senior Citizen Housing ($200,000) The intent of the Agency is to acquire land for subsequent sale or lease to a.private developer who will covenant to develop the site as affordable housing for senior citizens for a term fixed by the Agency. The Agency needs to consider locations that could be available and with proximity to the public and private amenities necessary for senior citizen housing. Alternative approaches include negotiating with property owners interested in this project or acquiring a site and then soliciting proposals to construct a project. Regardless of the approach, further assessment as to the economic 'feasibility of this project is necessary because of the unique characteristics of senior citizen housing. The ability to construct an affordable project will depend upon land cost, construction cost and the willingness of the Agency and City to grant variances from zoning standards (density, size of units, parking, etc.) that would otherwise apply to a multi-family project. Parking Facilities ($2,000,000) The intent of the Agency is to acquire land and construct parking facilities as would be necessary in conjunction with private development. This project can be leverage to attract commercial development. It would proceed in conjunction with the land acquisition program or could independently as an opportunity arises. This project should only proceed as the need for a parking facility is demonstrated and its construction will result in development which has a long range benefit to the City and Agency. Repayment of General Fund Loans ($1,475,000) Upon receipt of the bond proceeds, the two outstanding loans will be repaid to the General Fund. Water System Improvements ($500,000) The intent of the Agency is to replace a water main and install a water well. The first step will be testing the water quality at various locations in order to ensure that ~he well is located in an area with water that meets State standards. The testing can be completed by April 1983. Installation of a well could be completed within six months after obtaining approval of the State for the selected location. Under~roundin~ of Utilities ($750,000) The intent of the Agency is to underground approximately 3,200 feet of overhead utility lines in the area bounded by Holt, Irvine Blvd. and Newport Ave. Subsequent discussions with the Edison Company have indicated that the engineering to complete Prospect Avenue between First Street and Beneta Way is complete and due to Edison's circuitry the cost of doing the above referenced area would be less if Prospect Avenue were completed first. If the Agency agreed with proceeding initially with Prospect Avenue, the Holt, Irvine Blvd. and Newport Avenue project could be phased in accordance with the remaining amount of bond funds earmarked for utility undergrounding. Staff will need to further explore this possibility with the Edison Company. BH:dmt L