HomeMy WebLinkAboutRDA STATUS REPORT 07-06-81OATE:
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July 6, 1981
Acting City Manager
REDEVELOPMENT AGENCY
7-6-81
NO. 5
Inter-Corn
Honorable Chairman & Members, Redevelopment Agency
R. Kenneth Fleagle, D.P.A.
Redevelopment Status Report
A. Sacramento Conference
The Sacramento Conference on Redevelopment on June 17-18, 1981
presented information valuable to the City.
The following are highlights of information applicable to the
City.
1. Tax increment revenues are not subject to the Gann
Initiative (Prop. 4) pursuant to SB 1972.
The finance plan may be amended without being subject to
the Montoya Bill, although there is a measure pending
before the legislature that would make the 20% set aside
for housing a mandatory requirement.
3. SB 99 bond funding may be used for funding commercial
structures as well as residential.
Tax increment funds may be used to finance capital
improvements within the redevelopment area which would
enable charging public improvements to the RDA Budget as
well as the acquisition of property and construction of
public buildings such as fire stations and equipment.
Se
Maximum interest for RDA Bonds is set at a 10% limit. AB
184 and SB 121 would increase the maximum limit but the
bills died in committee. Several bond issues have recently
been sold at 10% but are for short periods of time such as
a 4 year term. If interest rates decline as predicted, the
10% bonds may again be marketable on a long term basis.
e
Judge Lee's decision on the Garden Grove RDA definition of
blight is an appeal. It was a concensus of the attorneys
at the CRDA Conference that the court decision in Garden
Grove would not prohibit other agencies from determining
that vacant land is blighted where substantial public
improvements are required, such as the Irvine Company land
east of Browning.
Redevelopment Status Report
July 6, 1981
Page Two
Work Proposal
The following actions in priority order are proposed for the
Redevelopment Agency:
An amendment to the Project "A" (Town Center Project Area)
financing plan to increase revenues from $600,000 to $1.5M
and to increase bonded indebtedness limitation from $6.5
million to $10 million. This amendment will be presented
to the Agency on JulyS, 1981.
The acquisition of land for public parking accommodations
and acquiring options for the purchase of land for civic
center development and private redevelopment, as approved
by the RDA.
The expansion of the survey area to include the entire city
limits for the purpose of establishing projects in areas in
need of public improvements.
An amendment to the area of the Redevelopment Plan to
enable establishing a Project Area "B" for 1trine lands and
"C" for recently annexed County islands. The amendment of
the plan to increase the area or to create a new area will
place the RDA under the restrictions of the Montoya 20%
housing set aside and the other control measures of the
1976 legislation.
C. Recommended Action
A Minute Order authorizing staff to proceed with an RDA program
as outlined in this report, subject to amendments and
priorities established by the agency.
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