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HomeMy WebLinkAboutRDA TAX ALLOC BOND 06-06-83~- /~ NO. 5 :t ~ 6-6-83 Inter-Corn BATE June 1, 19~3 ~ TO: FROM: S UBJ ECT: REDEVELOPMENT AGENCY BILL HUSTOI,.CITY MANAGER EXPENDITURE PLAN FOR 1982 TAX ALLOCATION BOND ISSUE In January 1983, the A~ency considered the attached staff report regarding implementation of the tax allocation bond program. The Agency decided that it needed additional t~me to review the proposed projects before establishing its priorities. At its May 2, 1983 mee(ing, the Agency directed staff to place this item on the June 6, 1983 agenda for further consideration. Since the bonds were sold, the Agency has acquired one parcel on E1Camino Real through a negotiated sale. Because bond proceeds were used to acquire the parcel, the Agency has satisfied the obligation that at least $100,000 of the proceeds must be expended by June 14, 1983. The Agency is required to obligate 85%-of theibond proceeds by November 1985. To date, the Agency has expended 19% of' the proceeds through acquisition of the E1Camino Real. site and repayment of the loan to the General Fund. As pointed out on prev'ous occasions, the Agency has the flexibility to allocate the bond proceeds.for projects not listed in .the official statement for the bond sale. It can add or delete projects, and it can increase or decrease t~ dollar allocations for projects listed in the official statement. T~e only constraint is that the projects must be consistent with the Agency's Town Center Project Area Plan and conform to the requirements of State law. At this point, staff recommends that the Agency identify its priorities and establish general parameters with regard to the level of funding for particular projects. With these guidelines, staff can return to the Agency at a later date with more detailed information concerning the process, timing, etc. for proceeding with specific projects. BH:~ .AGENDA DATE: Dec, 1, 1982 12-6-82 Inter-Corn REDEVELOPHENT AGENCY TO: FRON: S USJ ECT: 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 work~ng 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; lg83. .l. Land Acquisition ($1,960,000) The inteni of the Agency is to acquire land within the Piroject Area which currently is not utilized at its highest and best use. Property acquired will be sold for private development throu)gh 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 oR 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 ito 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, t~e 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 flexibili~ 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 idevelop the site as affordable housing for senior citizens for a term fixed by the Agency. The Agency needs ito 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 ac§uiring 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 t~e Agency and City. to grant variances from zoning. standards (density, size of unit~, parking, etc.) that would. otherwise apply to a multi-Yamily project. Parking Facilities ($2,000,000) The intent of the Agency is to acquire land and iconstruct parking facilities as would be necessary in conjunction wiith 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 Ci~ and Agency. Repa)qnent 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 ($600,000) 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 mont~s after obtaining approval of the State for the selected location. Under~roundin~ of Utilities ($750,000) The in%ant of the Agency is to underground approximately 3,200 feet of overhead u%ility lines in the area bounded by Holt, Irvtne Blvd. and Newpor% Ave. Subsequent discussions wii:h the Edison Company have indicate~ thai the engineering to complete Prospect Avenue between First Street and Bene~a Way is complete and due to Edison's circuitr~ 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, Ir~ine Blvd. and Newport Avenue project could be phased in accordance with the remaining amount of bond funds earmarked for utility undergrounding. Staff will.need ~o further explore ~his possibility with the Edison Company. BH:dmt 'L