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HomeMy WebLinkAboutRDA ANNUAL REPORT 09-08-81DATE: Thru: TO: FROH: SUBJECT: September 8, 1981 Charles R. Thayer, Interi  No. 6 9,~8,-81 Inter- Corn Di rector I{EDEVELOPMENT AGENCY The Redevelopment Agency R. Kenneth F1 eagle (t~ ~ RDA Annual Report Section 33080 et. seq. of the California Community Redevelopment Law (Health and Safety Code) requires the Redevelopment Agency to prepare an annual report and submit it to the City Council and to the State Department of Housing and Community Development. A draft report has been prepared to satisfy the requirements of law. This is the first report that has been prepared and required reconstruction of the past actions of the agency. Subsequent reports will be less detailed and will permit the compilation of the required information without reconstruction. Upon receipt of the audit report, a resolution will be prepared for the Redevelopment Agency to adopt, transmitting the report to the City Council and to the State Department of Housing and Community Development. The City Council must then review the report and take appropriate action at the first meeting 21 days after receiving the report. RECOMMENDED ACTION Receive and approve the report pending receipt of the audit at which time a resolution of adoption and transmittal will be presented for consideration. RKF/dat ANNUAL rEPort 1980'81 REDEVELOPMEHT AGENCY James B. Sharp, chairman Richard B. Edgar Ron Hoesterey .Ursula Kennedy Don Saltarelli CITY OF TUSTIN ANNUAL REPORT CITY OF TUSTIN REDEVELOPMENT AGENCY FY 1980-81 RDA BOARD James B. Sharp, Chairman Richard B. Edgar Ron Hoesterey Ursula Kennedy Don Saltarelli STAFF Charles R. Thayer, (Interim) Executive Director Ron Nault, Treasurer Mary Wynn, Secretary/Clerk James B. Rourke, Attorney ASSOCIATE STAFF Robert Ledendecker, Public Works Director Mike Brotemarkle, Community Development Director Prepared By: R. Kenneth ~eagle, D.P.A. Community Development Consultant i III. IV. V. VI. VII. VIII. IX. TABLE OF CONTENTS INTRODUCTION A REVIEW OF THE REDEVELOPMENT AGENCY A. Purpose and Activities B. Personnel C. A Profile of the Past and Future D. Resources and Expenditures E. Projected Projects and Revenue CHRONOLOGICAL HISTORY OF THE TUSTIN REDEVELOPMENT AGENCY 1976-77 1977-78 1978-79 1979-80 1980-81 MAJOR PUBLIC PROJECTS WITHIN REDEVELOPMENT AREA MAJOR PRIVATE PROJECTS WITHIN REDEVELOPMENT AREA GOALS AND ACHIEVEMENTS FOR 1980-81 GOALS AND PROJECTS FOR 1981-82 RECOMMENDATIONS FOR NEEDED LEGISLATION AUDIT REPORT (Under Separate Cover) Page 1 2 13 14 16 17 18 19 ii I. INTRODUCTION The Community Redevelopment Law, (Division 24, Part I, Chapter l, Article 6 Sec. 33080. of the California Health and Safety Code) requires each agency to file an annual report with the Department of Housing and Community Development and with the City Council. The report shall contain: a. An independent financial audit report for the previous fiscal year. b. A work program and goals for the coming year. c. An examination of the previous year's achievements related to the goals of the work program. d. Recommendation for needed legislation. The City Council is required to review the report and take appropriate action at the first meeting of the Council which is held 21 days after receipt of the report from the Redevelopment Agency. This is the first formal report prepared by the Agency to the City Council in accordance with the requirements of the Community Redevelopment Law. However, the Council, as the Redevelopment Agency, has received audit and project status reports during the history of the Agency. In order to create a base and to recognize achievements of the Agency, this report summarizes the activities of the Agency since it's inception. This report includes the contributions of the City and private interests in revitalizing the economic health of the Town Center Area as evidence of achieving the intent and purpose of the Community Redevelopment Law. -1- II. A REVIEW OF THE REDEVELOPMENT AGENCY A. Purpose and Activities The City of Tustin created the Redevelopment Agency by Ordinance No. 696 on October 4, 1976, and adopted a plan for the Town Center Project Area for the purpose of eliminating and preventing the spread of blight and deterioration. Authorized actions of the agency include the following: Providing for participation by owners and residents presently located in the Project area by extending to them preferences to remain or relocate within the redeveloped areas should their present structure be suffering from deterioration requiring assistance; 2. Rehabilitation of structures and improvements by present owners, their successors, or the. Agency; 3. Redevelopment of land by private enterprise or public agencies for uses in accordance with this Plan; Installation, construction, or reconstruction of streets, utilities, and other public improvements such as center islands, street trees and landscaping; 5. Acquisition of certain real property for public improvements or to help expedite private development; 6. Relocation assistance to displaced residential and non-residential occupants should the need arise; 7. Demolition or removal of certain buildings and improvements; 8. Management of any property acquired under the ownership and control of the Agency; 9. Disposition of any property acquired by the Agency for uses in accordance with this plan. Personnel The City Council a~sumed the duties of the Redevelopment Agency upon the creation of the Agen~ in 1976. Members of the Agency were: Richard B. Edgar, Chairman James B. Sharp Donald Saltarelli Stephen L. Schuster Ralph Welsh, Jr. Councilman Schuster, being a property owner with the project limits abstained from the actions of the Agency. -2- Staff was appointed to the Agency on October 20, 1976 as follows: Executive Director - Treasurer Secretary/Clerk - Redevelopment Attorney - William L. Bopf Dan Blankenship Ruth C. Poe James G. Rourke Mr. Walter Fredricksen was selected as chariman of a citizens advisory committee. Subsequent personnel changes are as follows: James B. Sharp - March 1977 - March 1978 Ralph Welsh, Jr. - March 1978 - March 1979 Don Saltarelli - March 1979 - April 1981 Chairman: Members: Staff: Ursula Kennedy vice Richad B. Edgar - Richard B. Edgar - April 1980 - vice Ron Hoesterey - April 1980 - vice Ralph Welsh Jr. and Steven Schuster March 1978 Executive Director: Dan Blankenship vice William L. Bopf - Dec. 1977 Charles R. Thayer--~Tce Dan Blankenship- June 1981 Treasurer: Ed Bushong vice Dan Blankenship - Aug. 1978 Ron Nault vice Ed Bushong - Nov. 1980 Secretary/Clerk: Mary Wynn vice Ruth Poe - April 1980 The Redevelopment Agency on June 30, 1981 was comprised of the following: Chairman: Members: Executive Director: Treasurer: Secretary/Clerk: Attorney: James B. Sharp Richard B. Edgar Ron Hoesterey Ursula Kennedy Don Saltarelli Charles R. Thayer (Interim) Ron Nault Mary Wynn James B. Rourke --3- C. A Profile of the Past and Future The first project area of the Tustin Redevelopment Agency comprised the Town Center Area outlined on Exhibit 1. Special concern and interest was focused on the E1Camino Real area bounded by First Street, Newport Freeway, "C" Street and Prospect. The total redevelopment area consists of 6% of the land area of the City but 3% of the property values. Encouragement to private developers and the investment of public funds were necessary to restore the economic viability of the area. Four years of investment in the public property has been accompanied by renewed interest and investment by the private sector. Residential developments were not given emphasis within the old town center area since it was first necessary to establish a firm economic commercial base. However, an immediate goal was to attract new housing for the elderly, which has been achieved. Within the E1Camino Real project area, only 20 properties are owner-occupied, as shown by Exhibit 2. The Redevelopment Agency is unable to issue bonds due to the limitations upon interest payments and curtailed revenue as a result of Proposition 13. As a result, the Agency has borrowed funds from the general fund of the City and has constructed public improvements as funds become available from tax increment revenues. Major developments within the redevelopment area that have contributed to its economic health are listed in Section V of this report. Land uses approved within the redevelopment district since its creation consists of the following percentage distribution by permit value: Commercial and Retail Activities 32.16% Office Buildings 10.04% Banks and Savings and Loans 8.28% Restaurants and Food Establishments 4.85% Miscellaneous 4.92% Residential 31.57% Property Redevelopment 8.18% The future of the town center area looks even more encouraging with proposals for new developments to enhance the economic viability of the area. The challenge facing the Agency in the years ahead is to assure compatibility of new developments with the objective of preserving the community's heritage. -4- EXHIBIT I INVENTORY REDEVELOPMENT AREA OWNER OCCUPIED RESIDENTIAL UNITS A.P.# 401-573-10 401-571-06 401-584-03 401-621-11 401-621-05 401-621-08. ' 401-621-09 103-241-32 103-241-12 401-581-07 401-582-01 401-541-22 401-592-09 401-592-07 401-542-01 103-621-34 103-200-43 401-131-12 401-622-11 401-571-11 ADDRESS 305 S. C Street 180 S. E1Camino Real 240 S. Prospect Avenue 500 S. C Street 535 S. B Street 255 W. 6th Street 434 S. E1Camino Real 1052 Bonita Street 1022 Bonita Street 155 S. Prospect Avenue 240 E. Third Street 287 E. Third Street 305 E. Third Street 235 Preble Drive 190 S. Centennial Way 1091E. Bryan Avenue 12952 Elizabeth Way 14652 N. Prospect Avenue 460 S. E1Camino 175 S. C Street i Stevens sisters - Velma and Estelle 2 Retirement Home 3 Apartment 4 Leased to McCollough Exhibit 2 OWNER Li ndsay, Ralph McCl ure, Tom Bath, Wi 11 i am 1 Stevens, Velma Arnot, Reinhart Anderson, Charles Pottenger, Margaret Hol 1 and, Pearl Lee, Marl anne Sisk, Francess 2 Wong, Sidney Snary, David Cimildora, Mary Hernandez, Raul 3 De Iorio, Fred Okonsiki, Chester Ondemir and McCory 4 City of Tustin Boosey, Ina Almond, Albert D. Resources and Expenditures The Redevelopment Agency was created with a base year assessed value of $15,824,960. Tax increment revenues were limited to $600,000 average per year and a $6.5 million limitation on bonded indebtedness. The first year in tax receipts amounted to $209,237 in 1977-78. Projetions of incremental tax revenues available from the area and the inflated costs for public projects have indicated the need to amend the Finance Plan to authorize a limitation of an average yearly tax increment of $3 million. A review of the RDA Finances from 1977 to June 30, 1981 is as follows: RECEIPTS FROM TAX INCREMENT AND OTHER SOURCES Audited Revenues: 1977-78 $209,237 1978-79 302,339 1979-80 732,705 Projected Revenue 1980-81 Estimated Revenue 1981-82 $896,139 992,688 TOTAL ESTIMATED REVENUES THROUGH 6-30-82 NON-CAPITAL EXPENDITURES Audited Expenses: 1977-78 $ 32,709 1978-79 42,429 1979-80 7',360 Projected Expenses 1980-81 $ 15,228 1981-82 109,832 TOTAL EXTIMATED NON-CAPITAL EXPENSES THROUGH CAPITAL IMPROVEMENTS $1,244,281 $1,888,827 $3,133,108 $ 82,498 $ 125,060 6-30-82 $ 207,558 Audited Expenses: 1977-78 $ 59,400 1978-79 104,121 1979-80 473,287 Projected Expenses 1980-81'* $1,331,500 Projected Expenses 1981-82'* 2,108,600 TOTAL ESTIMATED CAPITAL EXPENSES THROUGH 6-30-82 $ 636,808 $3,440,100 $4,0~6,908 -5- TOTAL ESTIMATED REVENUE Less estimated expenses for: Non-capital Capital BALANCE 6-30-82 Amount loaned from General Fund Difference Amount shown in 1981-82 budget Variance $3,133,108 (207,558) (4,076,908) $1,151,358 $1,125,000 ( 26,358 (31,646) $ (5,288) * Source: Ron Nault, Treasurer ** These numbers require the necessity of adjusting both years by the $288,000 needed to complete E1Camino Real undergrounding for fiscal year 1980-81. E. Projected Projects and Revenue Plans have been approved for the following major projects within the redevelopment aea: Gfeller Development of Steven's Square (Main and "C" Street) Blanco Development (100 block E1Camino Real and "C" Street) Spirit Development (135 W. Main St.) Far West (First and Fashion Lane) Kornwasser Project (El Camino Real and Santa Ana Fwy) Projects that are probable or in the preliminary stage include the following: Segerstrom properties (Newport Ave - Main to Laguna Road) Burnett/Ehline (Holt and Irvine Blvd.) Mitchell Properties (100 block, S. Prospect) Prescott Properties (El Camino Real) Utt Juice Properties (193 E. Main St.) Based upon the approved and proposed projects, tax increment revenues are projected as follows: 1982-83 $1,272,845 1983-84 1,612,508 1984-85 2,004,465 1985-86 2,550,511 -7- III. October Nobember December January February April June CHRONOLOGICAL HISTORY OF THE TUSTIN REDEVELOPMENT AGENCY* 1976 - 77 The City of Tustin Redevelopment Agency was created on October 4, lg76, by the adoption of Ordinance No. 696. The City Council was designated as the Redevelopment Agency and William F. Bopf was appointed as the executive director. Procedures were established for the disbursement and control of RDA funds. The Redevelopment Plan was reviewed by the Planning Commission and adopted by Ordinance No. 701 on November 22, 1976. The Planning Commission and Community Development Department were delegated.authority for architectural control and design review. The Agency approved the first structural project within the district by the approval for Use Permit for the development of the Tustin Lanes Bowling Alley at 1091 Old Irvine Boulevard. An invitation was extended to the public for the creation of an on-going advisory committee. The Redevelopment Advisory Committee met on February 14 to develop plans and recommend priorities for the central area of the City to include E1 Camino Real lighting, landscaping, storm drain, traffic signals and the extensions of Sixth Street. Stene and Youngberg were identified as the financial consultant for the Redevelopment Agency. Walt Fredricksen, Chairman of the Advisory Committee, presented the committee's report on projects and priorities. The plans for the redevelopment of Larwin Square were approved and plans were approved for the development of the former City Hall site at 218 E1Camino Real. 1977 - 78 July August The fiscal year budget was adopted and revenue appropriated for projects during 1977-78. Right' of way acquisition was approved for the widening of Newport Avenue from Bonita to Andrews Street. * Source: RDA Minutes -8- September October November December January February March April May June A report of capital improvement needs in the redevelopment area was presented by the executive director. The agency appropriated $5,000 to establish the precise alignment of the 6th Street extension to Newport Avenue and a workshop was held on October 24 to review projects and plans. Budget allocations were approved and a loan was accepted from the general fund for land acquisition and widening of Newport Avenue. Dan Blankenship, City Administrator, was appointed as Executive Director of the Redevelopment Agency. Approval was granted for the Packer's Square project at 13122 Newport Avenue. Progress report of the first years operation of the RDA was received and filed. The preliminary budget for 1978-79 was presented and' the upgrading of the E1Camino Real water lines was approved in conjunction with storm drains and sewer projects. The preparation of plans for the undergrounding of utilities on Newport Avenue was approved. Plans were approved for the construction of Coco's Restaurant in the Courtyard Shopping Center and for Spires Restaurant in Larwin Square. The widening of Newport Avenue was authorized from 210' southerly of Walnut Avenue to 180' northerly of San Juan. A loan to the RDA from the City general fund was accepted. 1978 - 79 July August September October November The 1978-79 budget for the Redevelopment Agency was adopted. Status report was presented by executive director A public hearing was conducted on Tax Increment Revenue to be received in 1978-79. Authorization was granted for the sale of surplus property on the easterly side of Newport Avenue which was not required for road construction. Authorization was granted for the extension of 6th Street to Newport Avenue Funds were appropriated and a bid awarded for the widening of Newport Avenue. -9- February May June July August October December January March April May Undergrounding District No. 4 was approved for the undergrounding of utility lines adjacent to Larwin Square. The budget was revised and a capital improvement status report presented. Plans were approved for a water main in E1Camino Real extending from First to Sixth Street. Plans were approved for the Sixth Street extension. Upgrading and new traffic signals were authorized for E1Camtno Real and Main, E1Camino Real and First Street, and a new installation at First and Centennial. A bid in the amount of $78,796.65 was approved for undergrounding utilities on First Street. A loan in the amount of $1,125,000 was accepted from the City and $984,500 was appropriated for the E1Camino Real Undergrounding Project. 1979 - 80 The E1Camino Real Water Main bid in the amount of $83,615 was approved. The construction of traffic signals was approved for E1 Camino Real and Main, E1Camino Real and First, and First at Centennial in the amount of $126,200. Staff was directed to solicit development proposals on a case by case basis for presentation to the Agency. Sanitary Sewer lines were approved for the development at 150-160 E1 Camino Real. The Capital Improvement Budget for 1979-80 was approved. The E1Camino Real Water Main was completed. Undergroundlng District No. 4 for Larwin Square was completed. The audit of compliance with the regulations was presented. The Sixth Street impovement project was accepted. Demands were approved in the amount of $257,243.15. Plans and specifications were approved for modifiction of the center island east of Prospect on First Street. Demands were approved in the amount of $203,216.53. A bid was awarded for the modification of the First Street center island in the amount of $8,141. The Agency stated that they did not want to make a policy statement about the use of the power of eminent domain but when it is in the best interest of the City, they would be willing to consider it on a case by case basis. Staff was directed to contact the School District about leasing or acquiring school property next to Peppertree Park and to search for developers willing to develop projects within the redevelopment area. -10- June July August September October December February March April Demands were approved in the amount of $16,882.68. Demands were approved in the amount of $267.50. 1980 - 81 The 1980-81 budget was approved allocating $1,602,300 for capital improvements for a total of $1,823.051. Staff report was presented by the Community Development Director indicating parking needs and desirable locations. Notice of completion was received for the installation of traffic signals. A list of public improvement projects was presented by the Community Development Director and approved. Notice of completion was received for the First Street Center Island modification. Design review and modifications were considered for the proposed office building at 150 E1Camino. An additional $15,170 was appropriated for the center islands on Newport Avenue. An appropriation of $36,800 was made for the Bryan-Main Triangle. An additonal $18,000 was appropriated for Newport Avenue center islands. The E1Camino Real Undergrounding District was approved. Staff was directed to propose to the Gfeller Company a joint parking facility between "C" and E1Camino Real. Funds were appropriated in the amount of $14,650 for engineering studies for the Main Street and Sixth Street storm drains. A bid was accepted in the amount of $530,945 for the E1Camino Real Underground District. Plans and specifications were approved for sanitary sewers for Second and "C" Streets. A bid was awarded in the amount of $22,226.78 for the Second and C Streets sewer improvements. Staff was directed as follows: 1. Participation with Gfeller on joint parking facility. 2. Continue exploration of acquisition of school property for parking. 3. The property at Prospect and Second was proposed for purchase at appraised value, to explore as lengthy an escrow as is feasible, come back to the Agency with a proposal, and simultaneously find a developer who will proceed in a manner of most benefit to the City. 4. To make a study and report on an amendment to the Redevelopment Finance Plan. -11- May June Plans were approved for Main Street and Sixth Street storm drains. Architectural design plans were approved as modified for the development of property at 150 E1Camino Real. The Agency determined that it would not compete with a private developer for acquisition of the Mitchell property on Prospect Street. Payment in the amount of $288,747.35 was authorized for the E1Camino Real underground district. The Agency denied a waiver of parking requirements for the property at E1Camino Real and Second Street. Demands were approved in the amount of $491,778.33. A bid was awarded for the Main and Sixth Street storm drains in the amount of $277,333 and additional budget appropriations was made in the amount of $25,000 for the project. -12- IV. MAJOR PUBLIC PROJECTS WITHIN REDEVELOPMENT AREA (1976 to July 1981) Street Projects Newport Avenue widening (Bonita to Andrews) Sixth Street extension to Newport Avenue Traffic Signals Newport Avenue and Bryan Main and E1Camino E1Camino and First First and Centennial Beautification Newport Avenue Center Islands Brian and Main Triangle Landscaping Flood Control Projects E1Camino Real Storm Drain {Partial) Main Street Storm Drains (Preble to "B" St) Sixth Street Storm Drain Water Distribution Sixth Street Main from Newport Aveue E1Camino Ral Main from First to Sixth Street Undergrounding Of Utilities E1Camino Real District Lrwin Square District Sanitary Sewers E1Camino Real and "C" Street Project -13- MAJOR PRIVATE PROJECTS WITHIN THE REDEVELOPMENT AREA EXCEEDING $10,000 PERMIT VAUUE 1976 TO JULY 1981 Commercial Developments Mervyn's Dept. Store Tustin Village Center Retail/Office Bldg. Drug Store (Sav-On) Courtyard Retail Shops Retail Shops Commercial/Office Retail Shops Packer's Square Commercial Bldg. Commercial Bldg. Commercial Bldg. Office Buildings Financial Center Centennial Bldgs. Wellington Plaza Clock Towers Hummel Bldg. Banks and Savings & Loan Allstate Savings & Loan Lloyds Security Pacific Coast Savings & Loan Central Federal Savings & Loan Restaurants & Food Est. Address 18182 Irvine 1081-91 Main 100 W. First Holt - First Holt-First-Irvine 380 E. First 220 E1Camino 250 E1Camino 18331 Irvine 13112-32 Newport 13762 Newport 14751 Plaza Dr. 14771 Plaza Dr. Address 161-231 Fashion Lane 275 Centennial 505-15 E. First 14742 Plaza Drive 13732 Newport Permit Value $1,355,000 608,000 107,889 600,000 692,500 80,000 160,000 393,822 145,800 1,305,308 202,320 580,060 488,507 $6,865,006 32.16% Permit Value 314,100 341,718 865,188 489,811 131,151 $2,141,968 10.04% Address Permit Value 18232 Irvine 80,000 701 E. First 264,000 13471 Newport 222,000 662 E. First 402,480 13522 Newport 800,000 Address $1,768,480 8.28% Permit Value Tony' s Sea Food 13612 Newport 109,400 Swensons 13572 Newport 150,000 Burger King 13421 Newport 130,000 Pizza Shop 651 E. First 45,000 Del i-Market 1095 E. Mai n 40,000 Sandwich Shop 14921 Holt 22,500 -14- Restaurants & Food Est. (continued) Spires Cocoas Bob's Big Boy Miscellaneous Tustin Lanes Auto Repair Southern Calif. Oil Residential 56 Units 138 Units 101 Senior Citizens Triplex Redevelopment Projects & Improvements Tustin Square Assistance League Car Wash Restaurant Restaurant Office Building Larwin Square Fiddlers Three McDonalds Von's Market Mercury Savings & Loan Sunwest Bank E1Camino Bank Tustin Heights Shops & Stores Shopping Center Address 13451 Newport 14971 Holt 13102 Newport Address 1091 Old Irvine 90 Laguna Road 1011Laguna Road Address Plaza Way Packer's Circle 275 6th St. 525 "B" St. Address 690 E1Camino Real 160 E. 2nd St. 101W. First Street 158 W. Main 556 E. First 180511rvine Newport & First 1222 Irine 245 E. First 550 £. First 1095 Irvine 535 E. First 300 E1 Camtno Real 1142 Irvine 303-305 E1Camino 12991 Newport Total Permtt Value $ 156,748 183,738 198,180 $1,035,566 4.85% Permit Value 972,000 42,000 36,000 $1,050,000 4.92% Permit Value $1,386,400 3,378,559 1,822,850 152,202 $6,740,011 31.57% Permit Value $ 100,000 47,000 10,000 40,000 70,000 10,000 475,000 63,000 50,000 660,000 15,000 80,000 20,000 20,000 22,000 10,000 $1,747,000 8.18% $21,348,031 -15- VI. GOALS AND ACHIEVEMENTS FOR 1980-81 The goals of the Redevelopment Agency within the Town Center Area Project for 1980-81 were consistent with the original intent and purpose of the agency - to stimulate private redevelopment by the investment of tax revenues in public projects to enhance the safety convenience and welfare of the property owners, merchants, and shoppers within the Town Center Area. ProJects approved by the Agency for FY 1980-81 included the following: Construction and landscaping of Center Islands on Newport Avenue. 2. Undergrounding of utilities on E1Camino Real. 3. Construction ofstorm drains on Main Street and Sixth Street. 4. Construction of sanitary sewer facilities to serve properties in the 100 block of Second and "C" Streets. 5. Landscaping and beautification of the Main-Bryan triangle. 6. The development of public parking accommodations to serve the E1Camino Real commercial area. All of the proposed projects for FY 1980-81 were completed with the exception of providing public parking accommodations for the E1Camino Real Commercial area. Substantial progress was made on this project during the fiscal year with project completion programmed for FY 1981-82. The primary goal of the Redevelopment Agency for the year was to complete the underground infrastructure of the redevelopment area to enable proceeding with more visible public amenities for the area. The goal was achieved. -16- VII. GOALS & PROJECTS FOR FY 1981-82 The Redevelopment Agency will move from an emphasis on planning to implementation during FY 1981-82. A primary goal and project is to provide public parking accommodations in the town center area serving E1 Camino Real southerly of Main Street. Funds have been carried over from previous year allocation and commitment made for participation of joint public and private parking facility. Other parking related goals are the acquisition, lease, or joint participation in parking facilities serving the E1Camino Real area northerly of Main Street. Continuing projects consist of sign identity, landscaping, and street furniture for the E1Camino Real project area. The preparation of design plans is authorized for the development of Columbus Tustin Park. Reconstruction and improvements to streets and alleys are programmed for the year. The Redevelopment Agency finds that it is necessary to increase the limitation on tax increment revenues and bonded indebtedness to carry out the objectives of the plan. This is an objective for FY 1981-82. The initial goal of the Redevelopment Agency was to encourage private redevelopment within the area. Projections for 1981-82 forecast a greater commitment of private funds to development and redevelopment within the area than any year in the history of the agency thereby contributing to the goals of the Redevelopment Agency. VIII RECOMMENDATIONS FOR NEEDED LEGISLATION Section 33645(d) of the Health and Safety Code establishes the maximum rate of interest on agency bonds at ten percent (10%). Federal legislation now authorizes savings and loan associations to issue tax free certificates at rates that are considerably higher and related to the rates paid for Treasury Bills. It thus becomes impossible for a Redevelopment Agency to market bonds at a artificially restricted low interest rate when private institutions can make far more attractive investment opportunities with tax exempt status. Legislation is required to permit redevelopment agency bonds to be issued at market rates, subject only to assurances of the financial security of the issue. -18- IX. AUDIT REPORT (UNDER SEPARATE COVER) -19- CITY OF TUSTIN Appendix A Vacant Land o ~ o I I I I I I U r,_) I I r,.) r~ 0 0 ~ (~ ~J ~ 0 ~ ~ 0 .p ~ o ~ ~ c M o 0 ~ ~ o ~ o · 0 ~ ~ 0 ~ ~ ~o o o o 0 o 0