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HomeMy WebLinkAboutRDA 1 3RD 5 YR IMPLEM 12-06-04 AGENDA REPORT RDA NO.1 Agenda Item Reviewed: City Manager ~ Finance Director MEETING DATE: DECEMBER 6, 2004 TO: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR FROM: REDEVELOPMENT AGENCY STAFF SUBJECT: THE THIRD FIVE-YEAR IMPLEMENTATION PLAN FOR THE TOWN CENTER AND SOUTH CENTRAL REDEVELOPMENT PROJECT AREAS FOR FISCAL YEARS 2005-2006 TO 2009,2010. SUMMARY Agency approval is requested of Third Five-Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for fiscal years 2005-2006 to 2009-2010. RECOMMENDATION It is recommended the Agency adopt Resolution No. RDA 04-09 approving the proposed Third Five-Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for fiscal years 2005-2006 to 2009-2010. FISCAL IMPACT This action will have no fiscal impact on the Redevelopment Agency. State Law requires the Agency to adopt a five (5) year Implementation Plan outlining, in general terms, its intentions for the coming five years. This Plan does not appropriate Agency funds, nor does it require the Agency to appropriate Agency funds in the future. BACKGROUND Section 33490 of The California Redevelopment Law (CRL) requires each redevelopment agency to adopt an Implementation Plan every five years. The Tustin Community Redevelopment Agency adopted its First Implementation Plan for fiscal years 1995-1996 to 1999-2000 on December 4,1994 (RDA Resolution No. 94-16) and its Second Implementation Plan for fiscal years 2000-2001 to 2004-2005 on March 6, 2000 (Resolution No. RDA 00-3). Mid-term reviews and public hearings on Implementation Plans are also required, which were held in 1998 and in 2002 respectively. William A. Huston Third Five-Year Implementation Plan December 6, 2004 Page 2 The Implementation Plan is intended to identify programs, projects and expenditures the Agency proposes to undertake in the Redevelopment Project Areas within its jurisdiction during the next five-year period. Since the MCAS Tustin Redevelopment Plan, adopted in June 2003, included an Implementation Plan as part of the adopting process, there is no need at this time to review the implementing actions related to it. The proposed Third Implementation Plan covers both the Town Center and the South Central Redevelopment Project Areas as allowed by the CRL. The proposed Third Five-Year Implementation Plan consists of three sections. The first section provides an introduction to the Implementation Plan identifying the legal requirements and project areas covered by the Plan. Section II of the Implementation Plan deals with five-year non-housing redevelopment activities including a background discussion on each project area and accomplishments to date, and identifies proposed non-housing projects, programs and expenditures for those public improvement projects and economic development programs to be undertaken during the next five-year period. This section also identifies how these activities will assist in eliminating blight in each of the project areas. Section III of the Implementation Plan deals with five-year housing activities, including an outline of specific housing goals the Agency has previously adopted, and the housing activities the Agency intends to implement in the coming five years. The proposed housing implementation plan aggregates new or substantially rehabilitated units for the two Project Areas, as allowed by Section 33413(b)(2)v of the CRL, based on the determination that the aggregation will not cause or exacerbate racial, ethnic or economic segregation. Much of the information including components of the Agency's housing implementation plan is based on the City and Agency's Comprehensive Affordability Strategy for fiscal years 2000-2010 and the Housing Element of the City's General Plan adopted in June 2002. In reviewing the Implementation Plan, the Agency should note the following: 1. The purpose of the Implementation Plan is to provide basic information about the Agency's intentions over the coming five years. It is not intended to take the place of the Agency's ability to establish its priorities and direct staff accordingly. 4. William A. Huston Third Five-Year Implementation Plan December 6, 2004 Page 3 2. By its nature, redevelopment is opportunistic and must remain fluid in order to respond to the marketplace. The Implementation Plan does not limit the Agency from developing additional or alternative programs or projects in the future. 3. If the Agency wishes to alter the Implementation Plan in the future, it may do so easily. The State has not included any penalties in the CRL if the Agency does not meet expectations of the Implementation Plan. 5. The Implementation Plan includes more projects and programs than the Agency expects to be able to fund. If the Agency cannot afford all of the activities and programs outlined in the Plan, there is no penalty. However, Staff feels it is important to list all possible projects and programs, particularly in light of the history of the State to take from local agencies money the State feels is unencumbered. State Law requires the Agency to hold a public hearing before adoption of the Implementation Plan. The hearing has been noticed as required by State Law. If the Agency wishes additional changes to the proposed Implementation Plan, staff would suggest that these changes be conditioned corrections to be made by staff as part of any adoption of the Implementation Plan. The Implementation Plan is attached for the Agency review. Staff will be available at the Agency meeting to answer any questions the Agency may have. Attachments: Third Five Year Implementation Plan Resolution RDA 04-09 S:IRDAIRDA reportlThird 5 Year Imp Plan. 12-S-04.doc RESOLUTION NO. RDA 04-09 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE THIRD FIVE YEAR IMPLEMENTATION PLAN FOR THE TOWN CENTER AND SOUTH CENTRAL REDEVELOPMENT PROJECT AREAS. The Tustin Community Redevelopment Agency of the City of Tustin does hereby resolve as follows: I. The Tustin Community Redevelopment Agency (the "Agency") finds and determines as follows: A. The City Council adopted the Town Center Redevelopment Plan on November 22,1976 by Ordinance No. 701 and subsequently amended the Redevelopment Plan on September 8,1981 by Ordinance No. 855, further amended the Redevelopment Plan on March 20, 1989 by Ordinance No. 1021 and further amended the Redevelopment Plan on November 21, 1994 by Ordinance No. 1141; and B. The City Council adopted the South Central Redevelopment Plan on August 1,1983 by Ordinance No. 890 and subsequently amended the Redevelopment Plan on July 15, 1985 by Ordinance No. 939, and further amended the Redevelopment Plan on November 21, 1994 by Ordinance No. 1142, and further amended the Redevelopment Plan on November 1, 1999 by Ordinance No. 1223; and C. The City by Resolution 93-111, and the Agency by Resolution RDA No. 93-15, on November 1., 1993, adopted a finding that the use of tax increment housing set-aside funds allocated from the South Central Project Area and from the Town Center Project Area for the purpose of increasing, improving and preserving the community's supply of low and moderate income housing outside the Project Areas and within the City of Tustin will be of benefit to both the South Central and Town Center Redevelopment Project Areas; and D. Section 33490(a) (1) (A) of the Community Redevelopment Law requires the Agency to adopt a Five (5) Year Implementation Plan, outlining specific programs, including potential projects and expenditures proposed by the Agency to be made during the next five (5) years; and Resolution No. RDA 04-09 Page 2 E. The Tustin Community Redevelopment Agency adopted Resolution RDA No. 94-16 on December 5, 1994, approving the Implementation Plan for the Town Center and South Central Project Areas for the fiscal years 1995-1996 to 1999-2000; and F. The Tustin Community Redevelopment Agency adopted Resolution RDA 00-3 on March 6, 2000, approving the Second Implementation Plan for the Town Center and South Central Project Areas for the fiscal years 2000- 2001 to 2004-2005; and G. A third five (5) year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for fiscal year 2005-2006 to 2009- 2010 is now required; and H. Section 33490(a)(1 )(B) the Community Redevelopment Law states that the adoption of an Implementation Plan is not a "project" within the meaning of Section 21000 of the Public Resources Code and is not subject to environmental review; and I. A public hearing was duly noticed, called and held by the Redevelopment Agency on December 6, 2004. II. The Tustin Community Redevelopment Agency hereby finds and determines, based upon substantial evidence provided in the record before it that the Third Five (5) Year Implementation Plan for the Town Center and South Central Redevelopment Project Areas for fiscal years 2005-2006 to 2009-2010 attached hereto as Exhibit "A" is hereby approved. PASSED, APPROVED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency held on the 6th day of December, 2004. LOU BONE Chairperson PAMELA STOKER City Clerk Resolution No. RDA 04-09 Page 3 STATE OF CALIFORNIA) ORANGE COUNTY ) CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the Tustin Community Redevelopment Agency of the City of Tustin, California, do hereby certify that the whole number of the members of the Tustin Community Redevelopment Agency of the City of Tustin is five; that the above and forgoing Resolution No. RDA 04-09 was duly passed and adopted at a regular meeting of the Tustin Community Redevelopment Agency, held on December 6, 2004, by the following vote: BOARDMEMBER AYES: BOARDMEMBER NOES: BOARDMEMBER ABSTAINED: BOARDMEMBER ABSENT: PAMELA STOKER CITY CLERK THIRD FIVE-YEAR IMPLEMENTATION PLAN FOR THE TOWN CENTER AND SOUTH CENTRAL REDEVELOPMENT PROJECT AREAS (FY 2005-2006 to FY 2009-2010) Tustin Community Redevelopment Agency December, 2004 ACKNOWLEDGEMENTS TUSTIN COMMUNITY REDEVELOPMENT AGENCY AGENCY BOARD MEMBERS Lou Bone, Chairman Jerry Amante, Councilmember Doug Davert, Council member Tony Kawashima, Councilmember Tracy Worley Hagen, Councilmember William A. Huston, Executive Director AGENCY STAFF Christine Shingleton, Assistant Director James Draughon, Redevelopment Program Manager John Buchanan, Redevelopment Program Manager Dana Ogdon, Redevelopment Program Manager Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 TABLE OF CONTENTS SECTION 1- FIVE YEAR IMPLEMENTATION PLAN INTRODUCTION SECTION 11- FIVE YEAR IMPLEMENTATION PLAN FOR REDEVELOPMENT ACTIVITIES Background Town Center Redevelopment Plan South Central Redevelopment Plan Town Center Project Area Accomplishments South Centrai Project Area Accomplishments Financiai Resources Town Center Existing Obligations South Central Existing Obligations Agency Five Year Implementation Activities Town Center Redevelopment Project Area Town Center Five Year Projects, Programs & Expenditures Relationship to Blight South Central Redevelopment Project Area South Central Five Year Projects, Programs & Expenditures Relationship to Blight 1-1 11-1 11-1 11-2 11-5 11-5 11-11 11-14 11-14 11-15 11-16 11-16 11-17 11-20 11-20 11-21 SECTION 111- FIVE YEAR IMPLEMENTATION PLAN FOR HOUSING ACTIVITIES Housing Activities Introduction Housing Set-Aside Fund Requirements for Town Center Project Area Requirements for the South Central Project Area Housing Funds Available Housing Fund Programs, Projects & Expenditures Proportional Expenditure for Low and Very Low Income Housing Affordable Housing Compliance Plan Past Production of Affordable Units in Project Areas Housing Units to be Developed (Future Production) Replacement Housing 111-1 111-2 111-2 111-2 111-3 111-3 111-7 111-8 111-9 111-10 111-11 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 LIST OF FIGURES AND TABLES FIGURE 1-1 FIGURE 1-2 FIGURE 1-3 FIGURE 1-4 FIGURE 11-1 FIGURE 11-2 FIGURE 11-3 FIGURE 11-4 FIGURE 11-5 FIGURE 11-6 FIGURE 11-7 FIGURE 11-8 FIGURE 11-9 FIGURE 11-10 FIGURE 111-1 FIGURE 111-2 FIGURE 111-3 FIGURE 111-4 FIGURE 111-5 FIGURE 111-6 FIGURE 111-7 Summary of Legal Requirements Physical and Economic Blight Defined Town Center Redevelopment Project Area Map South Central Redevelopment Project Area Map Redevelopment Goals and Objectives Town Center Project Area Redevelopment Goals and Objectives South Central Project Area Project Area Data Summary Summary of Major Accomplishments Town Center Redevelopment Area Summary of Major Accomplishments South Central Redevelopment Project Area Summary of Public Infrastructure Projects Estimated Non-Housing Tax Increment Revenue Five-Year Non-Housing Activities Illustrative Cash Flow Town Center Project Area Blight Elimination Relationship Table South Central Project Area Blight Elimination Relationship Table Summary of Housing Set-Aside Funds Five-Year Housing Programs Illustrative Cash Flow Estimate Annual Distribution of Assisted Units City of Tustin Fair Share Affordable Housing Allocation Goal Summary of Affordable Units Produced Summary of Restricted Units to be Developed Summary of Replacement Housing Obligations APPENDIX TABLES APPENDIX A APPENDIX B Affordable Housing Production Tabulations Replacement Housing Calculations 1-1 1-2 1-4 1-5 11-1 11-2 11-3 11-7,8 11-9,10,11 11-12 11-11 11-13 11-19 11-23 111-3 111-5 111-6 111-7 111-9 111-10 111-11 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan FisCàl Year 2005-2006 through 2009-2010 SECTION I FIVE-YEAR IMPLEMENTATION PLAN INTRODUCTION Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 FIGURE 1-1 SUMMARY OF LEGAL REQUIREMENTS California Community Redevelopment Law, ArtIcle 16.5, Section 33490 This document has been prepared by the Tustin Community Redevelopment Agency ("Agency"¡ pursuant to Article 16.5 of Califomia Community Redevelopment Law ('CRL" or "State Law") (Figure 1-1). It is the third Five-Year Implementation Plan ("Plan") for the Redevelopment Plans ("Redevelopment Plan(s)") for the Town Center and South Central Redevelopment Projects ("Project(s) " or "Project Areas") in the City of Tustin Seclion 33490(a) of Ihe California Community Redevelopment Law requires each redevelopment agency to adopt an implementation plan every five years thai Includes: . The Agency's specific goals and objectives for Its redevelopmenf project areas. Redevelopment agencies are required to adopt an Implementation Plan every five years. The Implementation Plan may include more than one project area. While the City Council adopted the MCAS-Tustin Redevelopment Plan in June 2004, an Implementation Plan for the MCAS Tustin Project Area was incorporated as Section VI to the Report to City Council and approved by the Agency at that time pursuant to Section 33342(c) of the CRL and is therefore not included in this Plan. . Specific programs, inctuding potential proiects, and estimated eXpenditures for the next five years (FY 2000.2001 through 2004,2005). . An explaMtion of how these goals, objectives, projects, and expenditures WiiI eliminate blight in the Project Areas. . An expianation of how these specific goals, objectives, projects and expenditures will implement the low and moderate-income hOusing requirements mandated by law, including the following: 1. An annuai Housing Program for lI1e five-year term that provides sufficient detail to measure pertormance of the Low and Moderate Income Housing Fund requirements. The purpose of the Plan is to revisit the redevelopment goals and objectives of each Project Area and provide an explanation of how proposed programs and expenditures will eliminate blight and provide for affordable housing. The elimination of blight, as defined in Figure 1- 2, is a fundamental purpose for redevelopment under the CRL and is discussed more fully in Section II of this Plan. The provision of affordable housing is another fundamental purpose under the CRL, which is addressed in Section III of this Plan. While identification of specific programs, including potential projects, and estimates of expenditures proposed to be made is required under State Law, the Implementation Plan should be viewed as a policy and program document. The intent is not to restrict the Agency's activities. 2. An enumeration Of the number of housing units to be rehabilitated, assisted, pnce restricted, or destroyed dunng the term of the respective redeveiopment plans for lI1e Town Center and South! Central redevelopment projects. 3. An outline 01 the Agency's plan In using the Housing Trust Fund including annual deposits, transfer of funds, or accruals for special projects. 4. An identification of programs and projects lI1at wiil result in the destruction of existing affordable housing (il any) and the proposed locations for replacement housing. 5. The Agency's Ten-Year Housing Affordability Compliance Plan as required by Calilomla Community Redevelopment Law, Sections 33413 and 33490 (a)(2). The Agency's Second Implementation Plan was adopted in 2000. A mid-term review and public hearing occurred in 2002, as required by State Law. This Third Five-Year Implementation Plan is intended to update information pertaining to the Agency's financial resources, planned programs, potential projects, and proposed expenditures. This Plan will also be subject to a mid-term review by the Agency Board of Directors. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 1-1 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 BLIGHT A primary requirement of a Redevelopment Project and an Implementation Plan is to address the elimination of and the prevention of the spread of blight. Figure 1-4 provides a summary of physical and economic blight conditions under the CRL. Some of the conditions continue to exist in the Town Center and South Central Project Areas and are addressed Section II of this Implementation Plan. FIGURE 1-2 PHYSICAL AND ECONOMIC BLIGHT DEFINED California ComrnunRy Redeveloprnent law, Micle 3, Secfioos 33030 and 33031 Secfioos 33030 and 33031 of the California ComrnunRy Redeveloprnent law del~e blight 10 ~clude: Unsale/DilaD~alediDeteriorated Bui~inas. Buildings ~ which R is unsafe or unheallhy lor persol1S 10 live or work. These cOl1ditiOl1s can be caused by serious building code violations, dilapidation or detenoratiOl1, defective design or physical cOl1strucfÌOl1, fauby or inadequale utilities, or ather similar factors. Phvsical COI1dRiOl1s that lknR the Economic Viabilitv end Use of lats and BuildinQs. Facfors thai prevent or substantially hinder the economically viab~ use or capacity of bui~ings or lots. This conditioos can be caused by a substandard des~n, inadequate size given present standards and market coodRions, ~ck of parking, or ofher ~milar factors. IncornpaJjble Uses. Adjacenl or nearby useS that are incampatible with each ather and which prevent the economic development of those parcels or ather portions of the project area. lots 01 Irrenu~r Shape Inadequate Size and Under Mullicle OwnershiD. The e~stence 01 subdivided lots of irregular fann and shape and inadequate size lor proper usefulness and development thai are in mulliple ownership. Inadequate Public Infrastrucfure/FaciIR~s. The existence of inadequate public knprovemenls, parking lacilRies, open space, or utilRies. 1'.) DeDreciatediSlaQnanl Prooertv Values' Impaired Investments. Depreciated or stagnant property values or impaired investments, including, bul not necessan~ limned to, Ihose properties containing hazardous waste thai required the use of agency authority as specilied in Article 12.5lcommencing wRh Secfion 33459). Hiah Business Tumovers and Vacanc~sILow lease RalesiAbandOl1ed BuildinaslVacanl lots. Aboonnally high business vacancies, abnormally low lease rates, high lumover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use end served by utilities. lack 01 Commercial FaeHRje,. A lack of necessary commercial lacilRies that are nonnaf~ found in neighborhoods, including grocery stores, drug stores, banks, and ather ""ding instRutÌOl1s. Residential OverCfowtfina/Excess Bars UQuor Stores Adull Businesses. Residential overcrowding or an excess of bars, liquor stores, or ather businesses that caler exclusively to adulls, that has led 10 problems o! public safety and welfare. H~h Crime Rales. A h~h come rate thai constRutes e serious threat to the publ~ safely and wellare. 1'.) At Ihe time Ihe Town Center and South Central Redevelopment Projects were adopted, SectÌOl133O32 of the law Iwhich was repealed in 1994) provided that a bl~hted area was one which was characfenzed by, amoog ather things: The e~stenee 01 inadequate public improvements, public facilR~s, open spaces, and utilRies which canno! be remedied by private Of govemmental acfioo without redevetopmenl, and A blighted erea is currently defined as OI1e that exhibits both physical and economic blight, and is characterized by Ihe existence 01 inadequate public knprovements, parking facilR~s, or bath. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 1-2 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 This Five-Year Implementation Plan presents summary information for the Agency's Town Center and South/Central Project Areas including a review of proposed programs, potential projects and estimated expenditures, and an explanation of how these will eliminate blight within the Project Areas and implement the low and moderate-income housing requirements. The intent of this Implementation Plan is not to restrict the Agency activities to the goals and objectives, programs, projects and expenditures that are described herein, since conditions, values, expectations, resources, and needs of the Projects may change from time to time. Rather, this Plan outlines the current expectations of the Agency for the next five years. The boundaries for the Town Center and South Central Redevelopment Project Areas are shown in Figures 1-3 and 1-4 respectively. This Plan is composed of two major components: a Five-Year Implementation Plan for Redevelopment Activities and a Five-Year Implementation Plan for Housing Activities. The Five- Year Implementation Plan for Redevelopment Activities: The Five-Year Implementation Plan for Housinc¡ Activities: . revisits the goals and objectives of each Redevelopment Plan: . defines the Agency's strategy to achieve the goals and objectives of each Redevelopment Plan; . presents the programs, potential projects and estimated expenditures (other than those relating to low and moderate-income housing) that are proposed to attain the goals and objectives: and . describes how the goals and objectives, programs and expenditures will eliminate blight within each of the Project Areas. . shows how the statutory requirements for the set-aside and expenditure of tax increment for housing purposes will be met; and . shows how residential development will be implemented in the Project Areas per the Agency's established goals and in compliance with the requirements of the CRL. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 1-3 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 1-4 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 -1-1 0 c: :E $!!. " 5' ("")("") CD 0 3-3 ~ 3 I» c: '" " c.. "" go-; c: CD - c.. ::rCD (')C¡¡ ~ C --0 é!.ãJ :rJ" CD - c..» CDlC < CD CD " CO -0'< 3 CD 3- -c a ã, 0 ¡¡; át -n ü, f!l-l -<::r CD "" ~ c.. 8~ ",'I' ,-< I\)(þ 01» o~ en - -3 ::r-o g ëõ lC 3 ::rCD 1\)3- 00> 0= (00 , " ~3! ~O> 0" I ¡!t-"" 'C;i,,¡g ~" ..'.............c: 1 " -I .'.-1i~~::'~ . Z '. -I " .".i.;,,~ ~ r- "**, ~ '~~~:!! ~ ~¡;:¡ê jd 5~ . ="""" "'tI"" , 5:'" m I ~~~ ~ I ",NW ""'a«~"'tI " ::c . 0 ~ ffi ~^' ~)~ '--» ::c m » SECTION II FIVE YEAR IMPLEMENTATION PLAN FOR REDEVELOPMENT ACTIVITIES Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 BACKGROUND FIGURE 11-1 TOWN CENTER REDEVELOPMENT PLAN REDEVELOPMENT GOALS AND OBJECTIVES TOWN CENTER PROJECT AREA The Town Center Redevelopment Project Area is located in central Tustin and incorporates the historic "Old Town" and civic center and a majority of the commercial properties within the central portion of the City. The Town Center Project Area contains many of the City's retail and office jobs, and provides goods and services which serve the greater Tustin area. The Project Area is comprised of primarily commercial uses (approximately 90% of the Project Area land use). Relatively few residential uses exist in the Project Area. . To create a mixed use Town Center area that combines commercial, office, residential, and public uses, which will serve the needs ot the community as well as encourage the healthy growth of the area. . To encourage residential deveiopment by activeiy seeking private development in the redevelopment area. . To increase the level of capital improvements such as the development of the Columbus-Tustin Park, parking facilities, sidewalk and street landscaping, street improvements, and related public improvement proiects. . To revitaiize and develop amenities in the Project Area, both publicly and privately financed, as a means of aiding the revitaiization of the EI Camino Real section of the Old Town district in particular. The Redevelopment Plan for the Town Center Redevelopment Project Area was adopted on November 22, 1976 (Ord.No. 701). The Redevelopment Plan has been amended three times including: September 8, 1981 for the purpose of increasing the financial limitations, which were determined to be inadequate (Ord.No. 855); March 20, 1989 to revise and update the list of public improvements to include additional and previously unforeseen public improvements needed to further the goals and objectives of the Redevelopment Plan, extend the time limit on eminent domain, and further increase the financial limitations (Ord.No. 1021); and on November 21, 1994 to extend the time limits of the Redevelopment Plan pursuant to the provisions of California Assembly Bill 1290 (Ord.No. 1141). . To improve controlled development of the area to aid in harmonious and efficient development of the redevelopment area. . To improve traffic circulation and access in the Town Center area as a means of redUCing eòngestion, encouraging business development, attracting new customers to the area, alleviating pass-through traffic congestion and conflict, and improving satety. The Redevelopment Plan for the Town Center Redevelopment Project Area lists six goals and objectives described in Figure 11-1. Major elements of the Redevelopment Plan are summarized in Figure 11-3. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-1 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 SOUTH CENTRAL REDEVELOPMENT PLAN FIGURE 11-2 The South Central Redevelopment Project Area is located adjacent to and south of the Town Center Project Area and is comprised of the original area and the added area. The Project Area contains residential uses, neighborhood-serving commercial uses, industriallbusiness park uses, and vacant land. REDEVELOPMENT GOALS AND OBJECTIVES SOUTH CENTRAL PROJECT AREA To acquire funds for housing assistance to low income families. The Redevelopment Plan for the South Central Redevelopment Project Area was adopted on August 1, 1983 (Ord.No. 890) in response to the need for basic public improvements, concern for deteriorating conditions of the residential neighborhoods, and the circulation deficiencies in the Project Area. On July 15, 1985, the City Council amended the Redevelopment Plan to add the adjacent industrial area south of the AT&SF railroad right-of-way to Valencia Avenue (Ord.No. 939). The added area ("Amended Area") was included because development of the property was constrained until the proposed public improvements for the South Central Redevelopment Project Area, particularly the Newport Avenue extension and a new on/off ramp at Edinger Avenue and State Route 55 freeway were funded and completed. The Redevelopment Plan has been amended two additional times including: November 21, 1994 to extend the time limits of the Redevelopment Plan pursuant to the provisions of California Assembly Bill 1290 (Ord.No. 1142); and November 1, 1999 to re-establish the Agency's authority for eminent domain for a twelve-year period (Ord.No. 1223). To eliminate blight, due to the disuse 01 the land within the Project Area caused by inadequate public improvements, and the construction of major traffic circulation improvements that could not reasonably be expected to be made by private enterprise acting alone. To provide betler emergency services to the Proiect Area with the constnJction of a grade separation for Newport Avenue and the AT&SF Railroad. To provide for development 01 land areas that cannot be developed due to the inadequacy of public improvements related to traffic circulation and storm drainage. To provide increased traffic capacity for Red Hill Avénue and Edinger Avenue and by providing an altemative north/south arterial. To exténd Newport Avenue to relieVé congéstion at freéway interchanges and reduce the traffic demand on Red Hill Avenue. To redevelop and place abandoned industrial sites back into productive use, thereby creating employment opportunities and increased property values. The Redevelopment Plan as amended for the South Central Redevelopment Project Area lists seven goals and objectives described in Figure 11-2. Major elements of the Redevelopment Plan are summarized in Figure 11-3. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-2 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 ~ Appro.malely 360 acres encompass",g"e ""Iral er,,01 T"lin comprised 01 Appro.malely398 acres soulh ol"e Town Center Prtjecl A'" er"""",assing 01", ProjecIAroaSi",LocahOl1a"dCheracleristk:s residenhala"dcomme".usas, incluò","eCilyscMc ""Ier a"dh"IOOc "Old Toon' origl". "Cenlra' er" comprised 01 """"erai. and residential uses, a"d"e added er" "Sou.." area comprised 01 light i"duslrial a""commeroiaJ uses Redevel'p"",n'P". """'1$ DOle .'.l,Jidi.....Hø. Dale ',,",.., ,.Prdl.."",II. Redevelopmenl P1an Adopled N""embe,22,1976 0""No,701 Augusll,I983 O,d No,890 (Ood"a"", Numher) Rer"""'opment Plan Ame""ed SeplemherB,I961 0"" No, 655 Augusl5, '985 0,dNo,939 Merch2O,1989 0"" No, 1021 Novemher2l,1994(ABI290) O,dNo 1142 N<Wemher2l,1994(ABI290) Ord, No, 1141 N""emherl,I999(AB9I2) O,d, No 1223 .., ~~ ,',..' ~~ "..~.. .,.... u.sIDatelolocurProjecIArealndehled"ess Janua~ " 2004 Janua~ 1,2004 July 15,2005 R"""elopmentPlanExpiratiOl1Date- N""embe'22,2O16 July 15,2015 July 15, 2015 . LaslDaleloReceW,ProjeclfueaTaxlncremenl' N"",mber 22, 2024 July 15,2025 .ltJly 15,2025 E'pirahOO Date lor Emi""'1 Qoma;" Aufuority April 20, 2001 Decem""',2011 Deeemhe",2O11 . TotID Amounl 01 Pemilled BOI1dedDehl $35,000,000 $20,000,000 ""'mum Amounl oIT" Incremenl $90,000,000 (80% tur>ds) $2,500,OOO'aooually &clus',01 20% sel-aslde FIGURE 11-3 PROJECT AREA DATA SUMMARY Not" ',"'"lopmeatP""" E'pITationDates a"d Last Dates loRe,,;" Pmject Area Tax Iocrement may be e,tend,d fn,""" yeM fn""h yeM ERAF Payment is m""e to Slate p~"a"tIoH",th&Saf"yCod,Sectinn 33333,6 (revi"dpe<SBI045) , Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-3 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 MAJOR ACCOMPLISHMENTS TOWN CENTER PROJECT AREA ACCOMPLISHMENTS Since the Town Center Redevelopment Plan was adopted, the Agency has provided private development assistance for the rehabilitation of substandard and deteriorating structures and for the development of new commercial uses in the Project Area. The Agency has completed vital improvements to upgrade substandard public infrastructure and to provide needed public facilities to serve the surrounding community. The Agency has also provided expenditures for business assistance and outreach programs to support the retention of existing businesses and attraction of new businesses in the Project Area. In addition, the Agency, working with the private sector, has assisted in development of new retail commercial centers, offices, and new residential units in the Project Area. The Agency has also provided first time homebuyer loans to low and moderate-income households. During the last five-year period the Agency participated with private property owners to rehabilitate commercial properties in the Project Area by providing financial assistance through the Commercial Rehabilitation Loan and Grant Program, and the development of 36 new construction single family residential units by providing financial assistance through the Agency's Low and Moderate-Income Housing Fund. The Agency also completed a major streetscape improvement project in the Old Town Tustin commercial district, including the installation of bump-out planters, landscaping, decorative paving, street lighting, accent lighting, street furnishings, signage, and alleyway improvements to further stimulate economic revitalization in the area. The Agency completed the planning and disposition of the Prospect Village Project (the former Utt Juice property) for development of an approximately. 40,200 square feet mixed-use retail, professional office and lIive-work residential units, which is anticipated to break ground in Spring 2005 and provide a gateway to the Tustin Old Town commercial district. Preliminary planning and grant applications were also completed for the proposed Tustin Library project, as well as most of the related land acquisitions for the project. Both Agency and private sector redevelopment activities have contributed to reducing the prevalence of blighting conditions in the Project Area, and to increase, improve and preserve the community's supply of affordable housing during the period of the Redevelopment Plan. Figure 11-4 lists private development completed in the Town Center Project Area assisted by the Agency and Figure 11-6 liststhe public infrastructure projects completed by the Agency. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-4 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 MAJOR ACCOMPLISHMENTS SOUTH CENTRAL PROJECT AREA ACCOMPLISHMENTS Since the South Central Redevelopment Plan was adopted and amended, the Agency's efforts have been primarily centered on planning for redevelopment and addressing immediate needs for improving basic infrastructure in the Project Area. The Agency has completed numerous street, alley, lighting and landscaping improvements, and constructed public facilities to serve the surrounding community. Working with private sector developers, the Agency has assisted in developing new retail commercial and offices in the Project Area and has independently constructed community facilities benefiting the Project Area. The Agency also assisted private sector developers in the construction of new for-saie housing units in the Project Area, inciuding units made available for purchase and occupancy by low and moderate households. In addition, the Agency has provided First Time Homebuyer Loans to assist low and moderate- income homebuyers to purchase residential units, and assistance to owners of single family homes and of multifamily rental units to rehabilitate structures through the Agency's Residential Rehabilitation Programs. During the last live-year period, public improvement plans were completed for major roadway expansion projects and related utilities improvements in the Pacific Center East Specific Plan area, including the Edinger Avenue widening project, the Newport Avenue northbound State Route 55 freeway onramp reconliguration, and the Newport Avenue north of Edinger extension, and property acquisitions related to the roadway projects were completed. The Agency also assisted in the development of a new construction 54-unit senior citizen rental housing project and a new construction 63-unit for sale family housing project adjacent to the Project Area, and continued assisting in the rehabilitation of family rental units in the Project Area. These Agency redevelopment activities along with private sector development have served to reduce the prevalence of blighting conditions in the Project Area such as the disuse of land, substandard infrastructure, and inadequate public facilities. Figure 11-5 lists specific private development project completed in the South Central Project Area and assisted by the Agency and Figure 11-6 identifies the public infrastructure projects completed by the Agency. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-5 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 FIGURE 11.4 SUMMARY OF MAJOR ACCOMPLISHMENTS TOWN CENTER REDEVELOPMEMT PROJECT AREA TUSTIN COMMUNITY REDEVELOPMENT AGENCY A SUMMARY OF MAJOR PRO,IECTS COMPLETED TOWN CENTER PROJECT AREA PROJECT PROJECT UNITS OR BUILDING AGENCYI RATIO PUBLICI ADURESS SQ.ET PERl\ßT PUBLIC PRIVATE APPROX VALUATION ASSISTANCE INVESTMENT T",lInP'~o 13681-nN~port $439.000 185/1 C,,=lo' SS>OO 14.SS',002 am", 46.500 12,965,383 R~lo_1 5.000 $324.175 PI~o Lo Eoy,"" 13011-05110>1", 11,816.000 17Il Co~"ol 44.000 12,459.928 R~lo"""" 6.807 16\0,241 Lo""n Sq.." R,""Addlll"" 4'4 E Elrnl 5,000 180.000 $0 110 am", 225 C",,=lo' 15,000 1341.700 10 110 B..""Kln, 13421 Newport 3.030 1155.000 10 I/O Vo""Ex""",I,,,,&R~d'" 10 I/O Slmn',Sqnm am" 210-50 Mol" 6.038 11,900,400 $50.000 38/1 P""I""S"", 445 '". 246Sp"~ 1880,000 1600.000 14611 T"lInVUlo"C,.." C,,~,¡ol \O8I-n ~ful" 25,546 1608.000 10 110 R~lo_1 13612 Newport 3~94 1109.400 10 I/O T"Un Conny", 11"",,= 18182hvl"" 72,000 11.680,000 10 110 S.,-On 67lEElrn' 25.000 1600,000 10 I/O C,,~"ol """'Flmt 30.000 1694.500 10 I/O R=d,1 1490l-14945N"""ort 1995,000 ""lIn Hol,h" Cml" \O96-1212hvl"o 1931,000 10 110 Rolph', E""",i," & RmDd'" 1114--l212 364,000 1249.200 10 I/O Lon"SlvSl""""""" 1222fuvin' -.000 10 liO 1T~,tl" Tl" 1J5 SPro,p"" N/A 191,407 10 I/O SUBTOTAL 121,140336 12.905,000 ESTIMATED PERMANENT JOBS CBEATED ESTIMATED ANNUAL SALES TMOROTHER 244 186 20 193.000 I 161.000 125 20 14 126.000 I 60 9 N/A 24 114.500 73 12 1221,000 206 72 86 104 1130.000 C""Monti.1 1255 1545~00 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-6 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 ,..,. Co....," R.'...',.", ",..., ""I"'~I"'-"" c"""'",,""'" ,.~, l IT".¡;oPI",.Ao"W~h ~¡¡;.CMlu 22240EF¡~tSl 4,866 BUILDING AGENCYI RATIO OF ESTIMATED ESTIMATED PE""fiT PUBLIC PRIVAlE PE",,!ANENT ANNUAL SALES YALUATION ASSISTANCE PlIBLlC JOBS CREATED TAX OR INVESTMENT alliER 1641,000 $0 110 41 N/A $325,240 SO 110 11 Coofidmti& 1285l'00 SO 110 89 - 193,000 PROIECT PROJECT ADDRESS DNITS OR SQ.FT APPROX H""~S.",o,, 18356Iron"BI,' 12.200 600-712EI C""¡"" 8<01 31.141 IC",,~I.I 6OOEIC""ooR~1 4,000 1120,000 $0 110 12 N/A C.M;.h. am.. 730ElC"""'R~1 15,450 $1.249,000 10 110 60 NlA 750EI C"".., 8<01 4,000 1281>50 SO 110 5 Co"fidm¡;.1 220ElC,"",ooR~1 4,720 $160,000 SO 110 14 Co"fidmtW 250EIC_oR~1 --_'1,376 $393,820 so 110 94 1M IT.."o Mol., Lod,. Rot." Sh... 10m.. iRd.iIIom.. 100 W F"" SI 5,928 $107.890 SO I/O 20 Coofidoili~ - 12,400 I 182311Ni", 18,600 1558,000 10 1/0 75 183021Ni"" 47J44 H.750,OOO $0 110 189 i"mdl-Eh"" am,. am", ICo_œ"'~ C..I.. P""~C""'t,,."," 150 EI C...,;oo R~I 43,056 $1,300,000 '0 110 42 1600 11 $5,400 26 NlA 109 N/A 212 $1,000 44 NlA 76 $3,500 11 N/A 123 NlA ]282 $105,900 W.III..I"oPl= 14772P"~ 10,500 1493,000 '° 110 18331IMn. 6,000 1145,000 10 I/O ï83011ron' 6,605 1275,000 10 I/O 14"'-7IPI.~ 32,879 S768~00 SO 110 161F""'"oLm. 53,000 1314,100 SO 1/0 14742P1.rn 11,000 1489,810 SO I/O 505-15 Fùol St 26",00 1865,190 SO 110 L.wI, PMp.rtI~ IC~dd".k C"",~,,..om.. am.. ICI".kTowm IHmmml Bldg. 13732N.."ort A~ --':;:86 1131,150 10 110 SUBTOTAL $10,653,050 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-7 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 -I -I 0 <= ::;; !2. ~~ @.~ g¡ 3 '" <= ::¡ ::¡ a. "" g,;' <= '" 9'16- f.?~ a.g ¡;¡ 3 -'" :D::¡ '" - 16-~ ~~ 0 (") -0'< 3 '" a "'!J a (j, (") ¡¡; ex, " ¡¡;- (") æ.-I -<::T '" =;- ~ a. '" " § ~. ,-< """ 0", o~ C) - -3 ~-o .§~ ::T'" ",a §g- , ::¡ J:g::g ~'" o::¡ ~ '" '" 0 0 '" '" ,. ,. !'" !'" g g š~ ~ "~ "§§ "å 0 ~~ § ~ t:i ::<1, ~ ~ 8 8 --0 3 ~ I Ë g ¡,"" ~[ ~¡¡ , ~ ;"§ ,. ,. 0 1õõ c¡;¡-.., c¡;;--,. ,. ~ ~ ~ ~~ ~~ ~~ i g ~ i ~¡ ¡;;~ H [ ~ ¡ 0 I~ I~ ~~ I ~ ~ fa ~e ~~ "" ! 0 ro. g- g-. ~ 0 ~ 0" ¡; "'~~ 0 ;O¡" '" 0'" n. ~ §~ ~~~H ¡ ~~ ~~"~"~~ '"" $ , . i' g ~ it ~ ~ ~ i: - z ~ n J t!! I- ~ i ~ ~ :, - ! f!. "~ " ,~ 8 E 8 ~ ~ ~ § "~ § ~ ~ ~ 0 0 0 00 0 0 0 0 ~ ~~ ¡¡ ~~ ~~s~ ¡,¡ ~~ ~"~ t!!~S~ ~ ¡¡: ~ ~ ~~ ~~~w ~ ~~ ' [ íJ '-,,"~.g - 0 0 , .. '" .. f!. ~ ~ i , , . ~ ~ ~ ~ ~ i 1 ~: ~ ¡,¡ t!! 0 ~ . n ~ n ~ ~ ~ , š' ~- ; , ,. :, :, - '! f!. f!. '" c - ~~z o¡: '§ "~ § "§ ~ ~~~ 8 - ~ ~"'g ~ ~ ~ ~ ~ ~ ~~~ t ~ S ~ 8 ~ ~~? ~§ § ~ "§§ 5~~ z " '" ~~'" ~ 'S 'S ~ ~ ~ ~~~ Qii9 ----- ----- 0 0 0 0 0 ~ ~ - i:ì z z p z z "§~~8~~ ~~~~ .~~~5 ~ii¡j~ '" g~~ ~~:i ~ g ~ ~~~ ~~¡j "",0 0 '" z" z.~ ¡; ~~~ 8 o~~ '"'"" ~o ~ '" " ;:¡ ~ -H 11 " . . . . n H ¡ ~ ~ ~ ~ š f '" f!. ~ [ ; ~i ~ ~ o~ 0§8§ - [if . ~ ~ I!. '"~ 0'" 00 i~ '-- - "~ ~ g ~ ~~ ~*~~ ~ "8 .~ ~"8 ¡g§¡¡§ ~ ~ § "8i 'S ~ ~~ 0000 ~ :. ~ ~ . . s. .... ,. 'o~o ;¡: ~ ,. ,. . "§ -L--L- '-- L--- FIGURE 11-5 SUMMARY OF MAJOR ACCOMPLISHMENTS SOUTH CENTRAL REDEVELOPMENT PROJECT AREA TUSTIN COMMUNITY REDEVELOPEMTN AGENCY A SUMMARY OF MAJOR PROJECTS COMPLETED SOUTH CENTRAl" PROJECT AREA PROJECf PROJECf UNITS OR BUILDING AGENCYI RATIO OF ADDRESS SQ.FT PEMDT PURUC PRIVATE APPROX VALUATION ASSISTANCE TO PUBLIC INVESTMENT Pri"~,, 13882 N~."rt 8,000 1193,000 10 1/0 L' Mmha Ap.n~." 13842N"""", 9,150 1215,000 10 110 Ic"l.. 13812N_rt 9,600 1456,000 10 1/0 T,,'. R.y.l, SMI", "".. 1"2Bry>« 58Thri" 12,754,000 10 110 T",Ii. VlIlao, ""an".." 275 Sixth 14OThri'. 1232,000 10 1/0 P",dm,""""""" 15642P=dm' IIThri.. 1945,708 10 1/0 N~...I.t Ap.n~'" 14901N"""", 144"'¡I, 15,699,000 10 1/0 C",d".',ln~ 15582-92"" 6 Unit.< 167,000 10 1/0 ESTIMATED ESTIMATED PEMIANENT ANNUAL SALES JOBS CREATED TAX OR OTHER 27 11.500 33 18,800 27 15.900 15 NlA NlA NlA N/A N/A N/A N/A N/A N/A N/A N/A ~D"."Ap""-" 15712-22"- 24U,,'.. 1915,000 SO 1/0 M'm,c'nl~ (Rct,d) 1100 Edi""" 45,'") '1,120,000 1638,000 1811 200 C"nfidmUm P"if" B"II (R&D) 1252.14728,"- 224,500 '10,572,000 10 1/0 748 $33.000 N",dm (R&D) 15222D"""m 61,190 12,710,000 $0 1/0 204 '10,600 S'lli"""{R&D) 136IVmm". 75,900 '1,760,000 $0 1/0 253 "',500 R~'" 1421-81 Edl."" 1250,000 8.411 138~00 R&D 62,100 $1,722,000 207 R~,.~,I 5,410 $391,000 16 Sol... 1302fudœlri,' 12,000 1828,000 10 1/0 40 10 T"Ii. Fm'wy C",t« R,"II t405l-61N_rt 31~47 11,309,632 10 1/0 106 16,400 C"I'd, 14041 N""'Port 3,156 $235,009 10 110 II "',000 SUBTOTAL 132,184,349 "'8,000 ' 1887 1134,200 Tustin Community Redevelopment Agency 11-9 Third Five-Year Implementation Plan Town Center and South Central Redevelopment Projects Fiscal Year 2005-2006 through 2009-2010 Tn'. C~~...," ..'n._,.." """r "","""o,..o-"""C,,,""..'o"",,, ",,2 l PROlEcr PROJECT ADDRESS UffiTSOR.) SQ.FT jAPPROX BJJILDJNG PERJ\ß1 VALUATION AGENCY! RATIO OF PUBLIC PRIVATE ASSISTANCE PUBLIC INVESTMENT $0 va SJ,O4',337 16511 $6,277 II.V' M..I,PI".PI~o 10,200 $U16,500 ~;' T,~INoJ4934 Smg!,F~lylJo= N~_A="" $17,154,603 '45th"" 36 Uni"",=R..Jridoi [EI Cond."IN"'I"'" C"t.. Rolly', R"oil B982N~'J'Ort ',294 $67,590 B942-62 N"wport 17,479 $786,455 116Uru" SJ75,ooo SO 1483JN"""", 1581' P..,do.. $0 Tm"N" 54U"'I. $6,779.859 $350,000 IIO'S"""""A~ (53 u,"""",n< R..Jridoi 19.411 ESTIMATED ESTIMATED PERMANENT ANNUAL SALES JOBS CREATED TAX OR OTHER 61 $18,500 N/A N!A I 20 $15,732 I N/A NIA I NIA NIA I ~ 20 $15,732 1907 $749,932 Sy"nm,.G"d", C""do C""-,"" 1/0 r;::::~~-:'::I~;~:"" '/0 I::;;',,::I:~::::::-'I' SUBTOTAL $10,103,648 $1,O47,6J4 TOTAL $50,367,997 SJ,935,6J4 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-10 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 PUBLIC INFRASTRUCTURE FIGURE 11-6 PUBLIC INFRASTRUCTURE PROJECTS TOWN CENTER: General street widening, Holt Avenue/State Route 55 storm drain improvements, Irvine Blvd. intersection improvements. Main St. banner pole Project. Restriping of Irvine Blvd, Street rehabilitation of Newport and Prospect Avenues, Traffic control improvements (i.e. increased lighting, signalization, traffic signs and left turn phasing lanes), Traffic signal installation at 1st and B Streets. Undergrounding of utilities. Tustin Water Yard Improvements Old Town Commercial District Streetscape Enhancement Project (street lighting, decorative paving, landscaping, furnishings, and signage), Street widening acquisitions and construction documents preparation for Irvine Boulevard and Newport Avenue intersection widening improvements, SOUTH CENTRAL: Alley pavement improvements for alleys between Newport and Orange Avenues, south of San Juan St. and Newport and Bonita Avenues. C Street reconstruction, Edinger Ave, widening between SR-55 and Red Hill Ave, Engineering and environmental assessment of widening Valencia Ave. Extend Newport Ave, to Edinger, and eventually, Valencia Ave, General lighting improvements. Improvements to Del Amo Ave. in conjunction with the new off-ramp from SR-55 at Newport Ave, Installation of traffic signals at McFadden and Walnut Avenues, Mitchell Ave, pavement and right-of-way improvements, Newport Ave, road improvements from Sycamore to McFadden Avenues. Red Hill Ave, grade separation at the AT&SF railroad tracks, Street improvements coordinated with housing rehabilitation programs to fund off-site improvements (i.e, alley and right-of-way improvements), Studies, plans, engineering, and construction of a new off-ramp from SR-55 at Newport Ave, Widening, pavement improvements, and reconstruction of San Juan Street from Newport Ave. to Orange Ave. Street widening acquisitions and construction documents preparation for Edinger Avenue "Smart Street" project from SR-55 to Red Hill. Right-of-way acquisitions and construction documents preparation for Northbound Ramp SR-55 and roadway improvements, Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-11 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 FINANCIAL RESOURCES The projects, programs and expenditures to be implemented over the next five years will depend on the level of financial resources available to the Agency. Available financial resources will include tax increment, after the Agency's 20% deposit to the low and moderate income housing set-aside fund, and revenue from bond proceeds, land sales, prior loan repayments, interest earnings, and new loans to the Agency, Figure 11-7 presents a summary of the estimated non-housing tax increment that may be available to the Agency over the next five years. The estimated available funds reflect the estimated non-housing tax increment minus estimated debt service payments, An illustrative five year cash flow for non-housing activities is provided in Figure 11-8, which includes the proposed programs and projects expenditures that are identified in the following section detailing the five year implementation activities, For the Town Center Project, as of June 30, 2005 the estimated beginning Capital Projects fund balance is approximately $1.2 million. It is anticipated that approximately $6.2 million additional net tax increment will be generated resulting in approximately $7.4 million available to fund non-housing projects, programs and expenditures over the Implementation Plan's 5-year time period. For the South Central Project, it is estimated that as of June 30, 2005 there will be a starting Capital Projects fund balance of approximately $3.0 million. It is anticipated that an additional $12.1 million in net non- housing tax increment will be generated over the next five years resulting in approximately $15.1 million available to fund non-housing projects and programs and expenditures over the Plan's time frame. The Agency's funding for affordable housing activities from the set- aside fund is discussed in the housing activities section of this Plan, EstimatedAvailable Resources Town Center Project Area Less Estimated Debt Payments: Estimated Availabie Funds: South Central Project Area Less Estimated Debt Payments: Estimated Availabte Funds: FIGURE 11-7 ESTIMATED NON-HOUSING TAX INCREMENT REVENUE Beginning Fund Balances $ 3,055,953' $ t.820,880' $ 1,235,073' FY 05'08 FY 06-07 FY 07-08 FY 08-09 FY 09- to TOTALS $2,721,289 $2,802,928 $2,887,016 $2,973,626 $3,062,835 $14,447,693 $t,647.680 $1642,030 $1,649,357 1,652.365 41.647.180 $ 8,2;Jß,Q12 $1,073,609 $1,160,898 $1,237,659 $1,321,261 $1,415,655 $ 6,209,081 $ 4,485,321 ' $ 1,455J!5B' $ 3,030,573' $2,332,147 $2,402,111 $2,474,175 $2,548,400 $2,624,852 $12,281,685 $ 48,600 $ 48.600 $ 48.600 $ 48,600 $ 48,600 $ 243.000 $2,283,547 $2,353,511 $2,425,575 $2,499,800 $2,576,252 $12,138,685 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects , Estimated beginning fund balances based on June 30, 2004 batances plus FY 04-05 fund deposits, minus FY 04-05 debt service and encumbrances (see Figure 11-8). " Estimated Non-Housing Tax Increment Revenues based on FY 03-04 deposits estimated to increase at 3% per year and adjusted for debt service, 11-12 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 FIGURE 11-8 FIVE YEAR NON-HOUSING ACTIVITIES ILLUSTRATIVE CASH FLOW ESTIMATED REVENUES AND EXPENDITURES I South CentralJ'fQject Area I I Fund Balances FY 04-05 I Beginning Fund Batance - $2,221,611 Estimated Non Housing Fund Oeposits .. Available Funds $2,264,220 $4,485,831 $2,221,611 Less: Annual ObliGations: Debt Payments Estimated Admin. & Indirect Expenses Programs and Projects Expenditures -.. $48,600 $90,000 $1,316,658 Remaining Balance $2,221,611 $3,030,573 I FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 I I TOTALS: I I $3,030,573 I $5,184,120 $1,357,631 $3,503,206 $5,823,006 $2,332,147 $2,402,111 $2,474,175 $2,548.400 $2,624,852 $12,381,685 $5,362,720 $7,586,231 $3,831,806 $6,051,606 $8.447,858 $48,600 $48,600 $48,600 $48,600 $48,600 $243,000 $90,000 $90,000 $90,000 $90,000 $90,000 $450,000 $40,000 $6,090,000 $190,000 $90,000 $40,000 $6,450,000 $5,184,120 $1,357,631 $3,503,206 $5,823,006 $8,269,258 I Town Center Project Area I I Fund Balances FY 04-05 I I FY 05-06 FY 06-07 FY07-08 FY 08-09 FY 09-1 o I I TOTALS: I Beginning Fund Balance' ($441,075) I $1,235,073 I $1,513,357 $863,255 $40,913 $1,112,174 Estimated Non Housing Fund Oeposiis .. $3,497,028 $2,721,289 $2,802,928 $2,887,016 $2,973,626 $3,062,835 $14,447,693 Available Funds ($441,075) $3,055,953 $3,956,362 $4,316,285 $3,750,270 $3,014,539 $4,175,009 Less: Annual ObliGations: Oebt Payments $1,647,680 $1,647,680 $1,642,030 $1,649,357 $1,652,365 $1,647,180 $8,238,612 Estimated Admin & Indirect Expenses $80,000 $150,000 $150,000 $150,000 $150,000 $150,000 $750,000 Programs and Projects Expenditures ..- $93,200 $645,325 $1,661,000 $1,910,000 $100,000 $100,000 $4,416,325 Remaining Balance ($441,075) $1,235,073 $1.513,357 $863,255 $40,913 $1.112,174 $2,277,829 . FY 05-96 Beginning Fund Balance reflects the ending available funds balance as shown in the June 20,2004 audit that include the Capital Fund's Cash & Investments Assets, minus Account Payable and Accrued Liabilities, which is adjusted to reflect estimated FY 04-0S fund deposits and expenditures. .. Estimated Annual Deposiis based on FY 03-04 deposits estimated to increase at 3% per year during the tive-year period. ... Programs and Projects Expenditures including administration and indirect expenses as discussed in the subsection tor Implementation Activities. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-13 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 The existing financial obligations for the Town Center and South Central Project Areas are described as follows: TOWN CENTER EXISTING OBLIGATIONS . Bond Debt Service. On July 1, 1998, the Agency issued $20,805,000 Tax Allocation Refunding Bonds to refund the Agency's Town Center Area Refunding Bonds, Series 1987 and the Agency's Town Center Subordinate Tax Allocation Bonds, Series 1991. Net proceeds were used to purchase Government Securities for the Series 1987 and Series 1991 Bonds which were deposited in an irrevocable trust to provide for all future payments when the Series 1987 and 1999 Bond are called for redemption, According to the Agency's Finance Director, as of June 30, 2004, the long-term debt Balance on the 1998 Tax Allocation Refunding Bonds was $21,356,766. The annual debt payments including principal and interest will be approximately $1,648,000 and total $8,238,612 during the Plan's five year period, . Set-Aside for Low and Moderate-Income Housing Purposes. The CRL requires that all redevelopment agencies set aside not less than 20 percent of their annual gross tax increment revenues that must be deposited into a separate fund to facilitate the development of housing for persons with low and moderate incomes. Particulars regarding the estimated amount and planned usage of the set-aside funds are described in the Housing Section of this Implementation Plan. . Town Center Low and Moderate-Income Housing Set-Aside Deferral. Between fiscal years 1985-86 and 1991-92, the Agency deferred a total of $2,776,042 from its Low and Moderate-Income Housing Set-Aside Fund in order to pay existing obligation including bond debt service described above. Particulars regarding the deferral and the plan for payment from non-housing resources to eliminate the Set-Aside Fund deficit are described in the Housing Section of this Implementation Plan. SOUTH CENTRAL EXISTING OBLIGATIONS . Set-Aside for Low and Moderate-Income Housing Purposes. The CRL requires that all redevelopment agencies set aside not less than 20 percent of their tax increment revenues to facilitate the development of housing for persons with low and moderate incomes. Particulars regarding the estimated amount and planned usage of the set-aside funds are described in the Housing Section of this Implementation Plan. . City Loan Repayment The City of Tustin has advanced a total of $3,000,000 to the Agency for administrative costs, which is a debt of the Agency requiring interest paid annually from available non-housing resources and principal to be paid prior to the last date to receive tax increment (July 15, 2025) under the South Central Redevelopment Plan. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-14 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 AGENCY FIVE.YEAR IMPLEMENTATION ACTIVITIES Non-housing implementation activities for both Project Areas will be generally associated with the following major areas: . Economic Development . Community Facilities . Public Infrastructure/Street Improvements These programs must often coincide and be overlayed to produce a successful project. Infrastructure and community facility improvements may work in concert with a private development project to ensure the desired economic development objective is achieved. Traffic flow improvements can be used to protect and enhance neighborhoods while at the same time serve to stimulate private investment and economic expansion, Projects may vary dramatically during the next five years in reaction to market conditions and private development interest, but the three main programs will remain the focus of the Agency, To support the major 1ocus areas of the Implementation Plan, direét administration program support costs, as well as, indirect costs including planning, professional consulting and legal expenses will also be incurred, The Agency's five-year implementation activities are based on the availability of funding from existing fund balances, bond proceeds and estimated future tax increment revenues not previously committed to existing financial obligations. In addition, financial resources from other City, State and Federal programs, including but not limited to, Community Development Block Grant (CDBG), economic development funds and capital improvement project funds may be used, if available, to assist in implementing the Agency's projects and programs. The proposed projects, programs and the corresponding expenditures over the five-year period are designed to achieve the Goals and Objectives of this Third Implementation Plan and the elimination of blighting conditions. They are identified by Project Area in priority order as determined by the Agency. However, financial resources are expected to be insufficient to complete implementation activities within the five-year time period. The CRL requires a five-year implementation plan regardless of economic conditions during the future five-year period. It should, however, be understood that the funding of identified programs is greatly influenced by economic conditions and the ability of the private sector to respond to Agency initiatives, Projects and expenditures rely on the private sector's ability to obtain funding, as well as the Agency's ability to maintain and increase tax increment revenues, If the Agency's revenues are depleted because of higher than projected expenditures or new requirements imposed by the State, it is unlikely that all of the projects and/or programs listed will be implemented. Achievement of the Implementation Plan Goals and Objectives, and the implementation of the projects, programs and expenditures outlined in this Third Implementation Plan will assist in eliminating blight within the Town Center and South Central Redevelopment Project Areas. The relationship between the Goals and Objectives of the Implementation Plan, projects, programs and expenditures of the Implementation Plan, and the blight that will be eliminated is described in Figures 11-10 and 11- 11. Private sector activities will additionally contribute to the removal of blight within the Project Areas and the the revitalization of the Project Areas The Agency's housing activities are discussed in Section III of this Plan. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-15 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 TOWN CENTER REDEVELOPMENT PROJECT AREA The Agency's focus during the next five-year period for the Town Center Redevelopment Project Area is to concentrate on economic development, community facilities, and public infrastructure/street improvement programs identified below. Implementation PlanGga!s and Objectives . Provide business assistance for rehabilitation, expansion and retention of existing and new businesses in the Project Area. . Rehabilitate substandard and deteriorating structures to improve building conditions, increase functionality and desirability, and to integrate area-wide design characteristics with the aim to create a cohesive commercial district, . Provide development assistance for new retail commercial uses to expand the community serving commercial core in the Project Area. . Upgrade substandard public infrastructure systems and public facilities, and provide for the installation and construction of new public improvements to meet the requirements of existing and new development in the Project Area. TOWN CENTER FIVE YEAR PROJECTS, PROGRAMS & EXPENDITURES Economic Development ProGrams ($350,000) . Developer/Property Owner Assistance Program to support revitalization of the City's historic Old Town and adjacent areas within the Town Center Project Area. The type of assistance may include, but not be limited to land assembly and resale to private developers, land preparation, off-site improvements, fee payments, design and engineering assistance, development loans (as may be allowed under the law), development of parking facilities. . Owner Assistance/Commercial Rehabilitation Program to provide financial assistance in the form of loans and grants for historic preservation, building and code compliance, building renovation and façade improvements. . Business Assistance and Outreach Program to support the retention of existing businesses and attraction of new businesses. Expenditures would include, but not be limited to such items as brochures, and marketing materials. Communitv Facilities ProGrams ($4,00,000) . Tustin Library - expansion and/or renovation of the facilities if supported by a State Library Bond Act Grant, developer contributions, and potential Tustin Legacy project contributions. . Stevens Square Parking Structure - provision of additional pedestrian aocess. . 420 EI Camino Real Property Improvement - installation of street front landscape improvements. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-16 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Public Infrastructure/Street Improvement Proarams ($67,000) ) . East Alley (Prospect Lane) Enhancement Project - implementation streetscape/pedestrian improvements in historic Old Town area including street planting and lighting improvements supported by CDBG funding, . Old Town Signage Program - installation of way finding signs throughout commercial district. . Prospect Avenue Enhancement Project - implementation of roadway and pedestrian improvements between Main Street and 3rd Street supported by CDBG funding, . Irvine Boulevard Storm Drain Projects - improvements between EI Modena-Irvine Channel and State Route 55, . Lighting and Traffic Control Projects - general improvements as determined needed to upgrade existing street lighting, traffic signal synchronization or phasing and/or new traffic control installation, also includes lighting and pavement improvements to private and public alleys, . Utilities Improvement Program - underground utilities in the City's historic area. Aaencv Administrative Proaram Suppon and Indirect Costs Incurred bv 9!y ($750,000) The Agency may also make payments to reduce the Low and Moderate Income Housing deficit, if additional tax increment funds are available during the Plan's five year period, Proposed Projects, ProQrams and Expenditures Relationship to BIiQht The CRL requires an explanation of the relationship between proposed projects, programs and expenditures to the elimination of blight with the project area during the period of the Plan, At the time the Town Center Redevelopment Plan was adopted, the plan spoke to health and safety conditions of buildings, and the factors that characterize economic dislocation, deterioration or disuse. Briefly, a blighted area is one that contains specific conditions and factors resulting in the lack of proper utilization of the area that constituted a serious burden on the community and that could not be alleviated by private enterprise acting alone. The Implementation Plan Goals and Objectives represent the Agency's near-term direction to continue the elimination of blight by providing assistance to strengthen the business environment of the Town Center Project Area, Specifically, the Implementation Plan Goals and Objectives will help the revitalize the building stock by improving deteriorated building conditions and correcting deficiencies among aged buildings. Goals and Objectives to upgrade and install public improvements and facilities, and to provide assistance to existing businesses, new businesses, and new development will help foster economic growth and correct or prevent conditions that may result in depreciated values, impaired investments and economic maladjustment, while facilitating the construction of necessary public infrastructure, Although both Agency assisted and private sector redevelopment activities have made major contributions to an improvement in the building stock in the project area and to an improvement to the prevalence of depreciated values, impaired investments and economic maladjustment in the Project Area, some of the conditions still remain to be addressed under this Third Implementation Plan. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-17 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 The following is a list of major blighting characteristics identified in the Town Center Redevelopment Plan and how the proposed Agency activities during the next five-year period will eliminate or prevent the spread of these blighting conditions within the Project Area: . Deterioration, Age and Obsolescence. Several buildings and retail centers in the Project Area remain characterized by deterioration, age and obsolescence. These properties do not appear to meet the changing needs of the commercial/retail sector and are no longer economically competitive in today's markets. The Economic Development program is proposed to correct these conditions and eliminate this blighting condition in the Project Area. . The Existence of Inadequate Public Improvements and Utilities Which Cannot be Remedied by Private or Governmental Action Without Redevelopment. Targeted areas in need of public improvements upgrades or new construction remain in the Project Area. Public parks serving the surrounding community are in need of upgrades and renovation, while traffic control and circulation measures continue to be needed, The Agency wishes to maintain its level of commitment to improving the public infrastructure serving the Project Area by continuing a Community Facilities Program and Public Infrastructure and Street Improvement Programs. . A Prevalence of Depreciated Values, Impaired Investments and Economic Maladjustment. Although conditions have slowly improved because of redevelopment activity in the Project Area, some problems including the lack of parking, vacant land, outdated building conditions, underperforming property values, and a lack of investment still remain, All of the Programs and Expenditures proposed under this Third Implementation Plan will address these blighting conditions. The matrix provided in Figure 11-9 summarizes the relationship between the Implementation Plan's goals and objectives and the Plan's proposed projects, programs and expenditures to the remaining blighting conditions. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-18 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 FIGURE 11-9 TOWN CENTER PROJECT AREA BLIGHT ELIMINATION RELATIONSHIP TABLE Detenoration, tnadequate Depreciated GOALS & OBJECTIVES Age & Public Values, Obsolescence Improvements & Impaired Utilities Investments & Economic Matad'uslment Provide business assistance tor rehabilitation, expansion and retention ot existing and new businesses, X X Rehabilitate substandard and deteriorated structures to improve building conditions, increase functionality and desirability, and to X integrate design charactenstics, Upgrade substandard public inlrasfructure systems and public facilities, and provide for the installation and construction of new X public improvements to meet the needs of the Project Area, Provide direct assislance lor the development of new commercial uses, X X PROGRAMS & EXPENDITURES Economic Development Programs X X X Community Facilities Programs X Public IntrastructurelStreetlmprovement Programs X X Note: Administrative program support and indirect costs incurred by the City In adminislenng Redevelopment Agency project areas support all programs and expenditures, Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-19 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 SOUTH CENTRAL REDEVELOPMENT PROJECT AREA The Agency intends to concentrate its redevelopment efforts in the South Central Project Area during the next five-year period on economic development, public infrastructure/street improvement and community facilities programs, These programs will allow funding to alleviate substandard infrastructure in the Pacific Center East Specific Plan Area and to alleviate traffic congestion throughout the Project Area, The Specific Plan is the primary devise for implementing the land use and infrastructure provisions of the Redevelopment Plan for the amended area of the South Central Project Area, While concentrating efforts within the Pacific Center East Specific Plan Area, the Agency also wishes to continue its public improvement program in the remainder of the Project Area, Implementation Plan Goals and Objectives . Provide direct assistance to support and facilitate development, to preserve the City's employment base, and to provide for an integrated business park environment which capitalizes on market opportunities and which is compatible with adjacent land uses. . Provide assistance to the private sector through the construction of circulation improvements designed to facilitate access to underutilized sites, . Upgrade substandard public infrastructure systems and public facilities, and provide for the installation and construction of new public improvements to meet the requirements of existing and new development in the Project Area. South Central Five Year PrQiects. Proclfams and Expenditures Economic Development Proc:¡rams ($200,000) . Developer/Property Owner Assistance Program to support development and revitalization within the South Central Project Area, The type of assistance may include, but not be limited to land assembly and resale to private developers, land preparation, off-site improvements, fee payments, design and engineering assistance, development loans (as may be allowed under the law), development of parking facilities. . Business Assistance and Outreach Program to support the retention of existing businesses and attraction of new businesses, . Expenditures would include, but not be limited to such items as brochures and marketing materials, . Augmentation of CDBG funding for City's graffiti removal program, Communitv Facilities Proc:¡rams ($200,000) . Recreational Facilities Program - improvements for existing facilities and the construction of recreational open space to serve the surrounding community. . Tustin Family and Youth Center Expansion - additional land acquisition, . Tustin Family and Youth Center Playground Improvements- installation of additional playground equipment. Public Infrastructure/Street Improvement Proc:¡rams ($6,050,000) . Newport Avenue/State Route 55 Northbound Ramp Reconliguration - relocation of existing ramps including construction of new ramps, demolition of existing ramps, construction of Newport Avenue between Edinger and Valencia, and realignment and construction of Del Amo, between Edinger and the newly constructed ramp, Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-20 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Public Infrastructure/Street Improvement Proarams (continued) . Newport Avenue Extension North of Edinger Avenue - extension from existing Newport Avenue terminus south to Edinger Avenue. . Edinger Avenue Widening - widening to major arterial smart street standards between State Route 55 and 1,400 feet east of Red Hill Avenue with intersection enhancements and traffic control improvements. . Valencia Avenue Widening - widening of right-of-way and intersection improvements per the Pacific Center East Specific Plan and traffic control improvements. . Red Hill Avenue Widening - widening of right-of-way and intersection improvements between EdinQer Avenue and Vaiencia Avenue per the Pacific Center East Specific Plan. . Lighting and Traffic Control Projects - general improvements as determined needed to upgrade existing street lighting, traffic signal synchronization or phasing and/or new traffic control installation, also includes lighting and pavement improvements to private and public alleys. ort and Indirect Costs Incurred b Proposed Projects. Proarams and Expenditures Relationship to Bliaht The CRL requires an explanation of the relationship between proposed projects, programs and expenditures to the elimination of blight with the project area during the period of the Plan, At the time the South Central Redevelopment Plan was adopted, the plan spoke to health and safety conditions of buildings, and the factors that characterize economic dislocation, deterioration or disuse, Briefly, a blighted area is one that contains specific conditions and factors resulting in the lack of proper utilization of the area that constituted a serious burden on the community and that could not be alleviated by private enterprise acting alone. The Implementation Plan Goals and Objectives represent the Agency's near-term direction to continue the elimination of blight by providing support to the industrial sector of the South Central Project Area, thus expanding the industrial base of the City and increasing employment opportunities, Specifically, these Implementation Plan Goals and Objectives will help to facilitate private sector development by assisting existing and new businesses, New development will also foster new economic growth and correct conditions of depreciated values, impaired investments and economic maladjustment by returning the land to proper utilization, Although the Agency has undertaken an extensive public improvement program within the Project Area which has corrected several deficiencies, targeted areas in need of public improvement upgrades or new construction remain, Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-21 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 The following is a list of major blighting characteristics found in the South Central Project Area and how the proposed Agency activities during the next five-year period will reduce the prevalence of these blighting conditions, . The Existence of Inadequate Public Improvements and Utilities which cannot be Remedied by Private or Governmental Action Without Redevelopment. Access between the northern portion and the southern portion of the Project Area is restricted because of the lack of through streets. While Red Hill provides the only north-south access route in the surrounding area, it does not provide direct access between the south (essentially the 1985 Amendment Area) and the central area of the Project Area. In addition, further development within the Pacific Center East Specific Plan area is restricted because of a lack of necessary public improvements, particularly circulation improvements to provide access to various sites. The Agency intends to facilitate development within this area and to eliminate the lack of proper utilization and prevalence of vacant sites within this area through the Public Infrastructure/Street Improvement Program, . A Prevalence of Depreciated Values, Impaired Investments and Economic Maladjustment. The Amendment Area will continue to suffer from a lack of proper utilization because an inadequate infrastructure system, Extraordinary high costs are required to correct these deficiencies. The Agency is proposing to contribute to the construction of off-site circulation system improvements, freeway ramp improvements, and street improvements to provide better access to and within the Amended Area. The Agency is also proposing to continue the Economic Development Programs to foster economic vitality in the South Central Project Area. . The Existence of Inadequate Public Infrastructure/Facilities. While the Agency has made contributions to constructing recreational facilities for elementary and rniddle school age children, young adults and families in the Project Area, target areas remain to be adequately served and in need of improvements or new construction. The Agency proposes to maintain its level of commitment to improving the public infrastructure and facilities in the Project Area by continuing the Community Facilities Program, The matrix provided in Figure 11-10 summarizes the relationship between the Implementation Plan's goals and objectives and the Plan's proposed projects, programs and expenditures to the remaining blighting conditions, Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-22 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 FIGURE 11-10 SOUTH CENTRAL PROJECT AREA BLIGHT ELIMINATION RELATIONSHIP TABLE Deterioration, Inadequate Depreciated GOALS & OBJECTIVES Age & Public Values, Obsolescence Improvements & Impaired Utilities Investments & Economic Maladiustment Provide direct assistance to support and facilitate development, to preserve the City's employment base, and to X X .provide for an integrated business park environmenf which capifalizes on market opportunities and which ;s compatible with adjacent land uses. Provide assistance to the private sector through the construction of circulation improvemenfs designed to facilitate X X access to underutilized sites. Upgrade substandard public infrastructure systems and public facilities, and provide for the installation and construction of X X X new public improvements to meet the needs of the Project Area. PROGRAMS & EXPENDITURES Economic Development Programs X X X Community Facilities Programs X Public Infrastructure/Street Improvement Programs X X Note: Administrative program support and Indirect costs IncuITed by the Redevelopment Agency project areas support all programs and expenditures. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 11-23 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 -1-1 0 c: ~ ¡g. 00 CD 0 =-3 ~ 3 ~ ~" 0...:< go$' 5.0.. :::r CD oëii ~-8 ëla¡ ~; CDee ëii ~ -8~ a¡ =- -u a ãï >l en :::E: 0 c: ~ z C) » C') -I <: -I m en ." ¡¡;" (") e!.-I -<:r. ¡ga ;;',J:! 8ëp 'i'-< "'CD 0", o~ 0> - -3 :::r"O a CD c: 3 ee CD :::r:::> [gg ¡¡5 g" "'-u ~¡¡¡- 0:::> "T1 0 ::IJ "T1 <: m -< m » ::IJ s: "'C r- m s: m z -I » -I 0 Z "'C r- » z en m 0 -I Õ :z - HOUSING ACTIVITIES INTRODUCTION The housing component of the Implementation Plan is a complement to the Implementation Plan. The Plan presents the Agency's explanation of how specific goal and objectives, and proposed projects, programs and expenditures will implement the low and moderate income housing requirements mandated by law, including the following: 1. An annual Housing Program for the five-year term that provides sufficient detail to measure performance of the Low and Moderate Income Housing Fund requirements, 2. An enumeration of the number of new, rehabilitated, assisted, price restricted, or destroyed housing units during the term of the respective redevelopment plans for the Town Center and South Central Redevelopment Project Areas. 2. An outline of the Agency's plan in using the Affordable Housing Set-Aside Fund including annual deposits, transfer of funds, or accruals for special projects. 4. An identification of frog rams, and projects that will result in the destruction or removal 0 existing affordable housing, if any, and the proposed locations for replacement housing. 5. The Agency's Ten-Year Housing Affordability Compliance Plan as Required by California Community Redevelopment Law (CRL) Sections 33413 and 33490(a)(2). Much of the information, including components of the Agency's housing implementation plan are based on the City and Agency's Comprehensive Affordability Strateg~ for fiscal years 2000-2001 through 2009-2010, and the City s Housing Element adopted November, 2002. Implementation of the Plan will ensure consistency with and achievement of the goals and objectives of the City's Housing Element and other housing related requirements contained in the CRL. An agency's major housing responsibilities generally fall under four broad categories including: 1) the set-aside of 20 percent of gross tax increment revenue for low and moderate income housing (Sections 33334.2 and 33334.6); 2) the creation of housing affordable to low and moderate-income persons and families based on the production of all new or substantially rehabilitated dwelling units (Section 33413); 3) the replacement of low and moderate income dwelling units removed as a result of Agency activity (Section 33413); and 4) the proportional expenditure from the 20 percent set-aside fund on housing for low and very low income persons based on community need (Section 33334.4). A discussion of each of the four categories is provided in this Housing Activities component of the Implementation Plan. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-1 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 HOUSING SET-ASIDE FUND Section 33334.2 of the CRL requires, for every redevelopment plan adopted or amended to add territory on or after January 1, 1977, no less than 20 percent of the tax increment received by the agency from a redevelopment project (or area added by amendment) be set aside for increasing, improving and preserving the community's supply of low and moderate income housing. The revenues may be expended inside or outside of a project area, If expended outside the project area, a resolution must be adopted stating that outside expenditures are of benefit to the project area. The set-aside funds are to be held in a separate Low and Moderate Income Housing Fund until used. Any unexpended amount in the Low and Moderate Income Housing Fund that exceeds the greater of one million dollars or the aggregate amount deposited during the preceding four fiscal years (beginning in 1989- 1990) becomes excess surplus, For redevelopment plans adopted before January 1, 1988, the 20 percent set-aside was required beginning in the 1985-1986 fiscal year pursuant to Section 3334,6 of the CRL. However, an agency could reduce and defer its low and moderate income housing deposit requirement in any fiscal year if it found that the reduction was necessary to make payments on "existing obligations" (Le" indebtedness incurred prior to January 1, 1986), and for fiscal years 1995-1996 only to fund "public and private projects, program or activities" approved by the agency prior to January 1, 1985 (Section 33334.6), If such a reduction was made, a statement of Existing Programs, or a Statement of Existing Obligations, or both had to be adopted by September 1, 1986 and filed with the Department of Housing and Community Development. The 20 percent set-aside or a portion of it could be only deferred until July 1, 1996, at which time full deposits had to be made, A deficit elimination plan was also required to be prepared to outline the agency intentions on expending the amount equal to the difference between the required 20 percent tax increment set-aside and the actual amount deposited, if any, for each year a deposit was reduced. DEFERRALS WITHIN THE TOWN CENTER PROJECT AREA The Town Center Redevelopment Project Area is subject to Section 33334.6 of the CRL, which applied the low/moderate housing set- aside requirement to pre-1977 projects, Section 33334.2 of the CRL also enabled the elimination or reduction of the annual housing fund deposit if the agency made findings regarding the lack of need for low/moderate housing in Tustin or the sufficiency of less than 20% of the Project Area's tax increment to meet the need that does exist. In addition, if a project had obligations that were incurred prior to the set- aside requirement, the agency could also defer the annual set-aside deposit as necessary to meet its earlier obligations. The Agency adopted such a Statement of Obligations for the Town Center Project and in fiscal years 1985-1.986 through 1991-92 deferred the deposit of approximately $2.8 million into the Housing Fund, In accordance with CRL requirements, the Agency adopted an amended Deficit Reduction Plan in May 2000 for elimination of the deficit caused by the deferral., Per the Amended Plan, commencing in FY 2005-2006 the Agency wiii deposit to the Housing Fund an amount equal to 20% of the net tax increment available in any year the that the tax increment equals at least 125% of the non-housing activities annual obligations, DEFERRALS WITHIN THE SOUTH CENTRAL PROJECT AREA Because the Redevelopment Plan for the South Central Redevelopment Project Area was adopted after January 1, 1977 the provisions of Section 33334.2 regarding the set-aside of 20% of tax increment for low/moderate housing purposes apply, The requirement for the South Central Project Area provide the same options for reducing or eliminating the set-aside deposit in a given year as discussed above, The Agency has not deferred any deposits in the South Central Housing Fund. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-2 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Housing Funds Available Figure 111-1 summarizes the estimated amount of beginning balances in the Housing Fund and the projected tax increment deposits into the Housing Funds for the Town Center and South Central Project Areas during the Implementation Plan's five-year period. While the projected set-aside tax increment revenues shown are based on the amounts deposited in FY 03-04 and estimated to increased at 3 percent per year, the actual housing set-aside deposits could be more or less than the amounts shown. FIGURE 111-1 SUMMARY OF HOUSING SET-ASIDE FUNDS Town Center South Central $ 554,000 $ 4,726,300 $3,611,900 $3,095.400 Estimated Beginning Fund Balance' Estimated Tax Increment Deposits" Five-Year Totals: $4,165,900 $ 7,821,700 Combined Fund Amount: Interest Earnings" ': $11,987,600 $400.000 $ 12,387,600 TOTAL AVAILABLE FUNDS (Over Next FivHear Period) , Balance as of June 30, 2004 , adiustedto reflect encumbrances and obligations. " Set~Aside Fund Tax Increment Deposits estimated to increase 3% per year. ". Interest Eamlng estimated at 2,5% basad on 50% of outstanding balance at any time.. The Agency anticipates funding the available housing set-aside resources for affordable housing activities within the five-year Implementation Plan time frame. The Agency also may also use Home Funds and federal CDBG Funds, if needed, to accomplish the goals and objectives of the Implementation Plan, Housing Fund ProQrams. Projects and Expenditures A description of the projects and program expenditures comprising the Agency's housing activities during the next five and ten-year periods is provided in the following: 1, Low & Moderate Income Homebuver Proaram ($2,375,000) The Homebuyers Program is comprised of three major components: Homebuyer Assistance Loans which consists of the provision of deferred payment loans secured by second deeds of trust to fund the "gap" between the affordable housing cost and the fair market value of a unit to reduce the overall mortgage cost of a home to levels supportable to low-mod buyers, Homebuyer Assistance Loans may be made for properties located city-wide. Low Interest Mortgage Loans consists of referring potential homebuyers to banks and other lenders that offer below market down payment requirements to qualified buyers. Mortgage Credit Certificate Program (MCCP) administered by the County of Orange, the program provides federal income tax credits as a form of assistance to homebuyers, During the last reporting period, the County of Orange has funded the administrative costs of the MCC program, Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-3 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 2. PreselVation of Existinc¡ Housinc¡ ($750,000) Preservation of the Tustin Gardens Apartments, a 101-unit Section 221 (d)(4) senior project with a Section 8 contract that expired but has been extended on an annual basis, The units are defined as "at risk" under CRL and will require Agency assistance if the owner elects not to renew its annual contract at any time, 3. Rehabilitation of Existinc¡ Housinc¡ Stock ($3,450,000) Owner Occupied (1 to 2 units) Rehabilitation Loans and Grants to continue to provide rehabilitation loans and grants for owner- occupied single family properties within certain specified target areas for households at or below 120% of the median income, adjusted for family size, Rental Rehabilitation Loans and Grants to owners rental properties in need of moderate rehabilitation where at least 51% of the tenants are at or below 120% of medium income and remain within the Fair Market Rent (FMR) levels for a period not less than the period of land use controls established in the respective Redevelopment Plan, Multifamily Acquisition, Rehabilitation and Conversion to Ownership Housing for smaller apartment projects containing two to eight units each which could be acquired, rehabiiitated, converted to condominiums and sold to qualified homebuyers with resale restrictions which limit the use of the property and limit the extent to which home prices may increase, Multifamily Acquisition, Rehabilitation and Rental to facilitate the purchase from absentee landlords and substantial rehabilitation of apartments that could be retained in non-profit ownership and rented to qualifying low and moderate income tenants for the longest period feasible, but for not less than the period of land use controls as established in the respective Redevelopment Plans. 4. New Housinc¡ Construction ($5,000,000) New Owner Housing Construction would provide land acquisition assistance to private developers for construction of new owner housing to mitigate the amount of the affordability gap for qualified potential homebuyers, 5. Su/J/Jo¡f and AncillalV SelVices (non-local resource)) Homeless Housing Partnership to provide assistance through federal programs to provided transitional housing for persons and families that are at or below 50% of the medium income level, adjusted for family size. Existing Section 8 Rental Assistance for very low and low income persons and families through the Section 8 Rental Assistance certificate program of the Orange County Housing Authority. 6. Administrative Su/J/Jo¡f Ex/Jenditures ($465,000) Administrative Support costs incurred and directly related to implementing the housing program including salaries, overhead, consultant and legal expenses, supplies, etc, The Agency's administrative program support expenditures from Housing Set- Aside Funds must be determined each year and found to be necessary to implement the housing program. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-4 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Figure 111-2 provides an illustrative example of how the combined housing programs could be financed on an annual basis over a five-year period, Actual timing and specific amounts may be adjusted over time, and specific cfecisions are made as a part of the Agency's annual budget process. The CRL identifies that beginning fund balance in any year which exceed the higher of $1 million or the sum of the prior 4 years deposits are considered "Excess Surplus" and such funds must be expended within one year; the Agency's 4-year deposits sum is currently over $6 million, FIGURE 111-2 FIVE-YEAR COMBINED HOUSING PROGRAM ILLUSTRATIVE CASH FLOW FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 TOTALS Resources Combined Beginning Fund Balance $5,280,300 (1.) $3,005,659 $ 168,919 $ 971,217 $1,813,723 CDBG Rehabilitation Funds $ ° $ ° $ ° $ ° $ ° $ o South Central Fund Deposits $ 583,037 $ 600,528 $ 618,544 $ 637,100 $ 656,213 $ 3,095,421 Town Center Fund Deposits $ 680,322 $ 700,732 $ 721,754 $ 743,406 $ 765,708 $3,611,921 Investment Interest $ 80,000 L.§Q,QQQ $ 80,000 $ 80,000 $ 80,000 $ 400.000 Estimated Total Resources: $6,623,659 $4,386,919 $1,589,217 $2,431,723 $3,315,637 $7,107,337 Expenditures (2,) Homebuyer Assistance Program $ 475,000 $ 475,000 $ 475,000 $ 475,000 $ 475,000 $ 2,375,000 Preservation of At-Risk Units $ ° $ ° $ ° $ ° $ 750,000 $ 750,000 Rehabilitation of Existing Housing $ 50,000 $1,650,000 $ 50,000 $ 50,000 $1,650,000 $ 3,450,000 New Housing Construction $3,000,000 $2,000,000 $ o $ ° $ ° $ 5,000,000 Administrative & Indirect Expenses $ 93,000 $ 93,000 $ 93000 $ 93,000 $ 93,000 $ 465,000 Estimated Total Expenditures: $3,618,000 $4,218,000 $ 618,000 $ 618,000 $2,968,000 $12,040,000 Balance Avaifable $3,005,659 $ 168,919 $ 971,217 $1,813,723 $ 347,637 Notes: 1. Estimated as of June 30, 2004, adjusted to reflect obligations and encumbrances. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-5 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Given the successful implementation of the Housing Program, the annual distribution of the units for each major program category is provided in Figure 111-3. FIGURE 111-3 ESTIMATE ANNUAL DISTRIBUTION OF ASSISTED UNITS FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 Totals 1. Homebuyer Assistance PrOQram a. Down Payment 2nd Mortgage Loans 5 5 5 5 5 25 2. Preservation of At-Risk Units a. Tustin Gardens Senior 0 0 0 0 100 100 3. Rehabilitation 01 Exlstina Houslna Siock a. Owner Occupied (1-2 units) Loans 4 4 4 4 4 20 b. Rental Rehabilltallon Loans 4 4 4 4 4 20 c. Multifamily AcqlRehab/Conyersion 0 0 0 0 0 ( Number 01 Units d. Multltamlly AcqlRehab/Ren 0 37 0 0 12 49 Number 01 Units 4. New Houslna Construction a. New Owner Housing 14 0 0 0 0 14 Number 01 Untts b. New Senior Rentat Number 01 Units Total Number 01 New, Rehabilitated 27 50 13 13 125 228 or Price Restricted Unils Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-6 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Proportional Expenditure of Housinq Fund Moneys Section 33334.4 (a) of the CRL requires expenditures of moneys in the Low and Moderate Income Housing Fund during a 1o-year period to be made to assist housing for persons of low-income and housing for persons of very low income in at least the same proportion as the total number of units needed for of those income groups bears to the total number of units needed within the community, The proportion is to be determined for each community on the basis of the unmet need for housing among the income categories, as reflected by the City's share of the regional housing needs identified pursuant to Section 65584 of the California Government Code. The agency may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled assistance and without agency assistance, In addition, Section 33334.4 (b) provides that each agency shall expend the moneys in the Housing Fund in at least the same proportion as the population under age 65 years bears to the total population 0 f the community. The intent under the CRL is that redevelopment agencies direct Low and Moderate-Income Housing Fund expenditures so that the moneys are distributed in a measurable proportion between that spent on low and very low income housing to that spent on moderate income housing, and in proportion between that spent on affordable family housing to that for affordable senior citizen housing. The City's 2002 Housing Element \Table H-17) provides a summary of the total quantified objectives or the City in relation the to the City's fair share of the regional housing needs, Figure 111-4 identifies the community's allocation goal adjusted to reflect the subtraction of units to be newly constructed at Tustin Legacy that will be developed pursuant to the MCAS-Tustin Specific Plan under local control and without Agency assistance. FIGURE 111-4 ADJUSTED AFFORDABLE HOUSING ALLOCATION GOALS Income Very Low Low Moderate Units 254 274 !J)§Q 1,608 Percent 15.8% 17,0% 67.2% TOTAL 100% Source: City of Tustin 2002 Housing Element Based on the Housing Element objectives, as adjusted pursuant to Section 3334.4 (a) of the CRL, it will be the goal of the Agency to tailor expenditures from the Housing Fund to provide approximately 16% on housing for persons and families of very low income, 17% on low income housing, and 67% on moderate income housing, This target goal is intended over the life of the redevelopment projects and not strictly on an annual basis, It will also be to goal of the Agency to expend 95% of the moneys in the Housing Fund for non-senior affordable housing activities to reflect the proportion of persons under 65 years of age in the community per the 2000 census, The Agency will monitor its expenditures of Housing Fund money to comply with legal requirements over the life of the two projects. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-7 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 AFFORDABLE HOUSING COMPLIANCE PLAN Both of the Agency's Project Areas were adopted after January 1, 1976. As a result, housing development in the Project Areas is subject to the housing requirements of Section 33413 of the CRL. These requirements mandate that certain percentages of all housing developed in the project area be affordable to low to moderate income persons and families as follows: . At least 30% of the housing developed or substantially rehabilitated by an agency itself in a project area must be available at an affordable housing cost to, and occupied by persons or families of low or moderate income. Of those units, 50% must be affordable to very low income households. This translates to a very low income requirement of 15% of the total project area units developed or substantially rehabilitated by the agency. This requirement applies only to units developed directly by the agency and would not apply to units developed by housing developers pursuant to agreements with or assistance from and agency; and . At least 15% of the units developed or substantially rehabilitated in a project area by public or private entities other than the agency (including such entities receiving agency assistance) must be available at an affordable housing cost to, and occupied by persons or families of low or moderate income. Of those units, not less than 40% must be affordable to very low income households. This translates to a very low income requirement of 6% of the total units developed in the project area. Per Section 33413(b)(2)(A)(iii) of the CRL, substantially rehabilitated dwelling units means all substantially rehabilitated multifamily rented dwelling units with three or more units, or substantially rehabilitated, with agency assistance, single-family dwelling units with one or two units," Section 33413(b)(2((A) (iv) of the CRL, defines substantial rehabilitation as """ rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value." Effective January, 2004, long-term affordability covenants must be recorded on dwelling units produced pursuant to Section 33413 of the CRL, requiring that the units be maintained at an affordable housing cost to, and occupied by, persons and families of low or very low income, for the longest feasible time but not less than 55 years for rental units and 45 years for owner-occupied units, The affordability controls on such units must be made enforceable by recorded covenants or restrictions in the same manner as required for units assisted by the Redevelopment 20% Housing Set-Aside Fund. Section 33413(b)(4) of the CRL also requires that he Agency's Implementation Plan for housing activities be consistent with the community's housing element and that the agency's housing production requirement be met every ten years (previously, the Agency only had to meet this obligation over the life of the redevelopment plan). If more than the required percentage of low and moderate income units are developed in a ten-year period, the affordable units in excess of the required percentage may be counted towards the agency's requirements for the next ten year period. If fewer than the required percentage of units are developed at the end of the ten-year period, the agency must meet its production goals on an annual basis until the requirements for the ten-year period are met. The agency may c¡¡use the required inclusionary housing units to be produced inside or outside the redevelopment project area, but shall for units developed or substantially rehabilitated by the private sector, require two units outside a project area for each unit that otherwise would have had to be available inside a project area. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-8 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Past Production of Affordable Units in Project Areas To date, the Tustin Community Redevelopment Agency has not itself developed or rehabilitated housing in either the Town Center or South Central Project Areas, However, new private housing construction and substantial rehabilitation of price-restricted units has occurred in both project areas and outside the project areas since the adoption of the redevelopment plans, None of these units were developed by the Agency. A summary of the total number of units which have been developed pursuant to the CRL for the Town Center and South Central Project Areas are shown in Figure 111-5, along with the affordable housing obligations as assigned to the very low, low and moderate income categories, While the CRL identifies the minimum percentage of the units produced at the very low-income level, the minimum percent is not specified between the low-income and the moderate income categories which are thus combined for analysis purposes in Figure 11-5. The Appendix A Table provides the unit calculation information in more detail by project name, location, number of units, year built and number of restricted unit made available by enforceable covenants or restrictions. Based on the information shown in figure 111-5, the Agency is meeting and exceeding the housing production requirements under the CRL. To meet its potential housing production requirements over the next ten- year period and life of both Redevelopment Plans, the Agency will apply its surplus balance of affordable housing production units, as permitted under the law. In addition, the Agency has taken steps to price restrict units in new residential development projects that are within the boundaries of the Project Areas, and will secure affordability covenants on substantially rehabilitated units located within and outside the boundaries of the Project Areas FIGURE 111-5 SUMMARY OF AFFORDABLE UNITS PRODUCED (Redevelopment Plan Approval to FY 2005-2006) Vel}'~ow Low Moderate Non- Total Units Produced: Income Income Income Reslricled TOTAL Inside Project Areas 123 6 15 384 528 Outside Project Areas" 9 215 0 412 636 Affordable Units Required: 33 > 47' n.a. 78 Affordable Units Produced: 132 221" 15 n.a. 368 Affordable Units Balance: 99 > 189 ' n.a. 288 , Refiects the combined low and moderate income category (Sadlon 33413 (b)(2). " Refiects inclusion of 224 units (50%) of the total restoded units substantiaily rehabilitated outside the project areas (Section 33413 (b)(2)(A)(ii). Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-9 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 Housing Units to be Developed (Future Production) Because the residential areas of both the Town Center and South Central Project Areas are essentially built-out, the majority of new construction in the Project Areas will be in-fill redevelopment and substantial rehabilitation of existing housing units by the private sector. Based on recent substantial increases in property prices, the private sector housing activities will necessitate Agency financial assistance to meet the affordability obligations and objectives in the Redevelopment Project Areas. The successful implementation of projects, programs and expenditures identified previously in the housing portion of the Implementation Plan, would be anticipated to create new and substantially rehabilitated price- restricted units over the next five-year period as shown in Figure 111-6. The estimated number of units produced do not include certain units assisted by the Agency, including the "at risk" senior project and single family and rental units assisted under the Residential Rehabilitation Programs since these units have previously been counted or do not require long-term affordability restrictions, Based on the proposed projects, programs and expenditures, the Agency does not anticipate any problem in meeting its required housing affordability obligations under State law. FIGURE 111-6 ESTIMATE OF RESTRICTED UNITS TO BE DEVELOPED (FY 2005/2006 - FY 200912010) Very Low Low Moderare Non- Income Income Income Restricted Total 19 19 92 79 209 Total Units Produce<!: Affordable Units Produce<!: 17 17 64 n.a. 98' Affordable Units Required: 8 > 9" n.a. Affordable Unil Balance: 11 > 72 " n.a. , Reflects 100% ot unils prodUce<! inside and 50% of restricted units provided outside fhe project areas. " Reflects the combined low and moderate income category. Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-10 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 REPLACEMENT HOUSING Section 33413 (a) of the CRL requires, for the Town Center and South Central Redevelopment Plans, that whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a redevelopment project (involving Agency participation), the Agency shall, within four years of such destruction or removal, rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed for rental or sale to persons and families of low or moderate income an equal number of units that have an equal or greater number of bedrooms as those destroyed or removed at affordable housing costs within the territorial jurisdiction of the Agency, When dwellin~ units are destroyed or removed after January 1, 2002, 100 percent previously 75%) of the replacement units shall be available at affordab e housing cost to persons in the same or lower income category (very low, low or moderate), as the persons displaced from those destroyed or removed units. In addition, dwelling units can not be removed from the low and moderate income housing market until the Agency has prepared a replacement housing plan which includes, among other requirements, the general location for replacement housing and an explanation of adequate means of financing the replacement units. The Agency has no replacement housing obligations for units removed by the private sector acting alone. The Agency has assisted in two redevelopment projects that resulted in the destruction or removal of 79 affordable housing units (56 units under the 75% rule and 23 units under the 100% rule). The units removed were located in the Town Center Project area and consisted of: 21 one bedroom units and 36 two bedroom units occupied by very low households, 13 two bedroom units occupied by low income households; 10 two bedroom units occupied by moderate income households; and one unit occupied by an above-moderate income household, This resulted in the need to provide a minimum of 46 units (72 bedrooms) of very low income, 10 units (22 bedrooms) of low income, 8 units (15 bedrooms) of moderate income housing. The Agency's replacement housing. obligation was satisfied by construction of new units on the same site as those units removed, and its inventory of income-restricted affordable housing units produced in the Project Areas. As shown in Figure III-?, it is projected that ending fiscal year 2004-2005 there is a replacement housing unit excess or "surplus" balance, which can be applied to potential obligations over the next ten years in accordance with Section 33413 of the CRL. Appendix B provides more detail regarding the bedrooms of the units destroyed or removed and the bedrooms provided in the replacement units. New construction, demolition, and/or rehabilitation are anticipated to continue at the same pace over the life of both Redevelopment Projects. To meet potential future replacement housing requirements, the Agency wili apply its excess affordable unit production balance. In addition, the Agency will restrict units, as needed, in the new residential development projects that are within the Project Areas or under agreement with the Agency outside the Project Areas, and will secure affordability covenants on units substantially rehabilitated located within and outside of the Project Areas, FIGURE 111-7 SUMMARY OF REPLACEMENT HOUSING OBLIATIONS (Plan Adoption - FY 2004-2005 ) Units Removed Replacement Units Required Replacement Units Available Very Low Low Moderate Non- Income Income Income Restricted Total 55 13 10 1 79 46 10 8 n.a. 64 107 388 15 n.a. 510 51 378 7 n.a, 445 Replacement Units Balance I (Deficit) Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects 111-11 Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 -j-j 0 <: :E g¡. :::I 5' f;?~ a3 ~ 3 '" <: :::I :::I o.~ g>~ =-0. ::rCD f;?~ a.g ¡¡¡ 3 -CD ::IJ:::I CD - 0.» CD<e < CD 91..'" .g.Q 3 CD a -c a ëir () ¡¡; TI (ñ' &-j -<::r CD =;. ~ 0. ~;r 0 CD 01 ' ,-< NCD 0", 0 ~ 0) - -3 a% cÉ¡j! ::r", N - gê-. <DO , '" ~::!1 ~'" 0:::1 » "C "C m :z 0 >< APPENDIX A AFFORDABLE HOUSING PRODUCTION I AFFORDABLE HOUSING ACTIVITY SUMMARY I P,.ducllon Numb., P,.ducllon Numbe, Replacemenl P,oJecl Name ~ Unlls Required Units p,ovlded' Units P,.vlded Town Cente, Project Alea LV UM VL Low Mod VL Low Mod Amblos. Lane 30 2 3 0 0 ..~ 2< Tustin G.,dens 100 6 9 99 99 Bd~ 99 ~-- Sublola' U""s ---,;;¡¡- 0 12 99 0 0 99 0 0 .."", 99 0 24 99 0 24 South Centml Proiect Alea Newpolnle Apartments 160 10 14 0 0 0 0 0 Bd~ T.,lin Aoya'e OS 6 7 16 16 .."", " ,. Tuslln Gmve 145 9 13 B 6 7 B 6 .."", 24 " 20 24 " 21 S"I"",,'U,,'I< ----0-00 24 34 24 6 7 24 6 7 """'" 40 ,, 21 '" 18 20 Outside of Proiecl Area Flande" Pain'" 02 0 0 17 33 .."", en " " Hamplon Squam" 350 0 0 105 210 ..~ "" 020 240 Herilage Place Tuslln 54 0 0 9 1B 17 36 Bd~ .. " 22 21 '" Omnge Galdens -. 150 0 0 75 150 Bd"", -- "6 332 Sublolal U"II< 636 0 0 9 215 0 17 429 Bd~ 972 " 327 0 20 653 . U",Prod"dò"Crn';I2cIO""""'Proj,,dArna¡Soc&m334"(b}(2}(a){ii)) .. s"""",,'" R""aMi~- A"'""""IS"""" 334"(b}(2}(A}(e)' (8)) TOTAL UNITS: 1,164 33 47 132 221 15 140 435 15 Bdmos '5<! 345 45 160 671 45 I REPLACEMENT HOUSING OBLIGATONS: I Un;'s Deslroyed 01 Removed: Replacemenl U,,;'s Required: 55 46 13 1õ 10 "8 . Nel U,,;'s Available Fol Aeplacemenl Haus;"g : .",_Ma'a"'" 107 3BB 15 Aeptecement Housing Un;' SulPlus/(Del";'} : 61 370 'oIa'."-' ",Bed== 70 - 'Re8",,"'o"'Ie~ ~'" _""",Prod"- Ob'~""'" IS"""" 3"" (6)(3)) Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 APPENDIX A (Continued) Pre 1995 Affordable Housln9 Unit Production OnUs COnslmctedlRestrlcted Re ,,',ed P"'lect .. "" "" mode.." no"'s- TOTAL "ewpofnfeApls ISM. ""o""'} 1 Bed'oom Units 2 Bedmom U"Us 3 Bedmom U"" Tolal U"its P>Od"eed 0 0 0 IBO 160 Tolel Bedmoms Reslriered U,,'Is Reou'",d 10 14 24 Tuslln Ge"'e"s ('~" eM'W) 1 Bedmom U"II, 100 1 101 2 Bedmom U"Us 3 Bedroom OnUs Tolel Units P>Od"eed 100 0 0 1 101 Tolal Bedrooms 100 Reslriefed Unlfs Reoul",d 6 9 15 Tuslln Rovele/Olhe" 1 Bedmom Units 16 B9 85 2 Bedmom U"its 3 Bedmom OnUs Total U"its P>Odueed 16 0 0 69 B5 Tofef Bedrooms Restricted U"its Reou'"," . 9 15 Totel Cons!",e!'" U,,"S I "6 I 8 I 8 I 230 I 346 I Tote' Rest,lcted PlOvlded Total Ra.tneted Req.'ad ,,6 22 0 32 "6 54 Produello" S.",I.'!IDeOell} I .. I (32) I ".s. I 82 I Pmject I Bedmom DOits 2 Bed,oom Unlls 3 Bedmom Unlls Totel V"its P>Oduœd Totela.drooms Restricted V"it. Pro,;ded (@" R",wm_o,) 1 Bedl~m Units 2 Bedmom U"lts 3 Bedmom U"lIs Totel V"its P>Od"eed Tofet Bedrooms Restricted V"its Pm,'ded (@"R",wm_"') .1 Bedroom U",. 2 "droom Un's 3 Bed,~m U"lIs Totel Un's P>Oduœd Tolel Bedrooms Res",efed Units Pro,'ded f@"R",w""""",} U"ils Rehab"'aled andl'" Con..nanl Rest'ieted . I ,eoy"" I ,~ mooOl3lel"o",""ell TOTAL . A""".",I"Co~~"'R.."""""".,,e",$od.OO"""")")(')(11 Total Rehabll'tated UnIte l 0 I 0 I 0 I 0 I 0 I Total Ra.tneled p,ovldad Tola' Reetncted P,ovlded n.a. n.a. PIOducllo" Su",t"s/(DeOcIQ I 0 I 0 I n.a. I 0 I Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 APPENDIX A (Continued) 95/96-99/00 Affordable Housing Unit Production PROJECT Tuslln Grovo (5""'" e_l) 1 Bedmom Unil, 2 Bedmom u"n, 3 Bedmom u"n, Totat U,,'s P,"",uood Totat 8edmoms Restricted U,,'s Required Amb,ose Lano IT~ e""I"" 1 Bedmom unn, 2 Bedmom U"it, 3 Bedmom Unit, Total U"lts P,"",uood Tota/8edmoms Restricted Units Req,,;red OfhelS 1 Bedmom Unit, 2 Bedmom U"it, 3 Bedmom Units To/a/ U,,'s P,"",uood To/a/ BedlOOms R.,/rieted U"'s Requ;"'d Unils Con,IOIeled/Re,l"eled R-;-"ked """,low low mode,.le n",e,hlet TOTAL 13 Pmleel 124 124 145 145 Orengo Galdons IOu/"",,} ~ 1 Bedloom Units 2 Bedmom UnIts 3 Bedmom Unit, Totat Units Produced Total Bedmoms 22 Restricted U"lts Provided I@"R"""K,,~I} 30 3õ 36 3a Hamplon Squa", 1°"""'" 1 Bed mom U"it, 2 Bed,oom Unit, 3 Bedmom Unit, Tola/U";lsP,""",eed Tolat Bedrooms Res/rieled Units Provided I@"R"""",_' F'andelS Poinle (ou/_' 1 Bed,oom Un'IS 2 Bedloom Unit, 3 Bedloom Unit, TolatUnltsp,""",ead Tota/ Bedrooms 6 11 15 17 Ras/rieted Units Pmvided I@"R"""",-, Unlls Rahabllilaled and/Ol C"enanl Restricted' I ve",low I low mode,.lelnore,lriell TOTAL . A>"""-""'~~"'R..""""",,,eR'S"ct_""""}('}(.}('1 17 17 93 93 40 40 150 0 0 150 75 75 124 62 206 66 56 144 0 210 0 140 350 105 105 42 27 69 7 6 13 49 0 33 62 24 24 Totol Const,"eled Un" I 8 I 6 15 I 154 I 183 I TotalUnlta I 0 I 409 0 I 173 L~ Tolol Restlleted Plovlded Tota' Restlleted Requl"d Produellon Su'Plus/IDeliclq L _131- I 4 I n,a. I 1 I n.e. n.a. 29 28 Total Restl'eted P,ovided Total Resllieted Requlled Produellon Su'P"'s/IDe.dq I 0 I 205 I n.a I 205 I 204 0 n.a. n.a. 204 0 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 APPENDIX A (Continued) 00/01-04/05 Affordable Housing Unit Production PROJECT Units ConstrucledlReSleeted Re ui>ed ve" low low mode",1e no restnel TOTAL ProJeet Units RehaOmlaled andlor Covenant Res"'eted . I ,e"low I low mode",lel no res"'cil TOTAL . A__c._""'R""""ion",,,CRLSedion333346(b/'2!,e,w Herlta.e Place (oulside! 1 Bedroom Units 2 Bedroom Units 3 Bedroom U"lIs Total Unlls Pwduced TolalBedrooms ,@"R""_,,,,) Reslrie/ed U"its Requ'",d 13 4 29 7 42 12 1 Bedroom Units 2 Bedroom Units 3 Bedroom Unlls Tolal Unils ProducM Total Bedwoms 9 11 IB 22 27 33 Reslricled Units Pro,ided "",'R"q__' )lsoulTustin Block (Outside) 1 Bedroom Units 2 Bedroom Unlls 3 Bedroom Unlls Tolal Unils Produoed Total Bedrooms ","R""_.,,I) Reslricled U"ds Req"',,,d 1 Bedroom Units 2 Bedroom Unils 3 Bedroom Unils Tolal U"ds Pwd"cad Tolal Bedwoms 44 .. 54 49 Reslricled U"its Pw,'ded ,@"'R"q"",~,,r, Olhe_THB (outside) 1 Bed,oem Unils 2 Bedroom U"lIs 3 Bedroom U"lIs Tolal U"its Produced Tolal Bedrooms 1 Bedroom U"its 2 Bedroom Units 3 Bedroom Unils Tolel Units Produced Total Bedrooms Restricted Units Req"'",d Restricled Unils Pro"'ded ","R""","~"') ,° Total Constructed U"its I - 21 l 37 I 10 I 44 I 112 I TotalUnllslolOIOIOIOI Total Restricted Pro,lded Total Restricted Required 11 0 10 0 37 0 Total Reslrle/ed Pro,ided Total Restrlcled Requtred n.a. n.a. Production Surplus/(De"ell} I "I - 26 I u.a. I 37 I Production Surplus/(Oe"cil} I 0 I - --"-__1 n.a I 0 I Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 APPENDIX A (Continued) 05/06.09/10 Estimated Affordabte Housing Unit Production 4 .- 12 6 ¡¡ 18 93 93 279 Unil, Rehabil"aled andlm Go,en"nl Re,I,/cled . PROJEGT ,,'ow I~ mod,,"le no ,",I,lcl TOTAL . A"""""""CO~,"rnR~""""'pe,cRrSed"""""'."')"}("X'J A/tadeno Drive iSo,,'" ee"lrol/ 1 Bed>oom U"I" 2 Bed<=m Un/" 3 Bed'oom U"", To/al U"iI, Produced Tolal Bed~m' 25 37 PROJEGT Unil' eo",ItUCled/Re'lt,eled Re u/,ed ,erylow low moderale no,eSl<lel ]OTAL me Colleges (oul<'de) 'BedmomUnil, 2 Bed mom Unil, 3 Bed mom Unit, Tolal Un/I< Pmdueed Tolal Bed,=m' 4 .- 12 79 ]g 237 6 12 6 12 25 50 37 74 R"tr/cled Un'I< Requ/,"d Re"ricted U"iI, Pmv/ded ,."R""'~~rn) 25 37 I Bed;oom oj;;;1< 2 Bedmom Unll, 3 Bed mom U"'I< Tolal Un/" Pmduced Total Bed<oom' 1 Bedmom Unil, 2 Bedmom Unil' 3 Bedmom U"iI, Total U"il< Pmduced TotaIBed~m' R"lrieled Unit' Requ/œd Re,'ric'ed Unil' Pm~ded ,."R_~n') 1 Bed,=mUnH, 2 Bed>oom Unit, 3 Bed,oom U,,'I< ToletUnil, Produced TolalBed~ms 1 Bed,~m u"H, 2 Bedmom U,,'I< 3 Bed>oom U,,'I< Tolal U"il< Prod"eed Total Bed>oom' Re"</eled Un/I< Reqt';red Re"rided Unil' Pro~ded ,."R_,rn) To"" Con","eled U"I1' I 4 I 4 6 I 79 I 93 1 To""Unlt"616125101371 To'" Re"rleled Pro,'ded To"" R"ltleled Requited Tolel Re,lrle"d P,",lded Tolol Reoltloled Required 25 0 n.o. n.o. 37 0 Produel/on S"rp/u'/iDeOel/} l 2 I 5 I n.o. I 7 1 Pmduel/on S"",/us/(DaOeit) I 0 I 31 I n.o I 31 1 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010 APPENDIX B - REPLACEMENT HOUSING CALCULATIONS REPLACEMENT HOUSING Summary Affordable Housing Replacement & Production Celculation AFFOROAaLE HOUSING I Units Produced/ResOic..d Re uired ,e<vlow 'ow'mode,ale "o,esldel TOTAL Pre .199S Replace",enl Requi"d' FV 95196 . 99100 ""its bed'=ms Replace",e"/ Reoul"d' ""ii, @75% bedroo",' ('e."""'~") FV 00101 - 04/0S "",ts bedr=m' Replace~n/ Reoui"d' "nits @1O0% b""oem' FY 00101 . 04/0S To"i Unils Pmdue'" 21 Reslrieted U"it, P"'"'ried 11 . Re"rlcted Units Requl'ed 0 Prodoctio" Su,",",;I(Detieit) --¡-¡ -1"",,"""""""""'CoT~'."""""'~-') Estlmaled FV 05/06 - 09110 To"l U"iI, Prodoc'" Restdeled Units P","'ded Res/ricted Unit, R",ul'ed Prod""tion Su,",u<l(Delicit) 34 68 10 20 56 112 P,.-199S TolalU"itsProduced Restdcled U"its p","ided Re"dcted Units Reoui"d Producti"n S",",us/(Deficit) 11 22 FV 95)96. 99100 Tolal Unil, P,oduced Restricted Units p","ided Restrieled V"its R"",I"d Prodoction S",p/u<l(Deficit) 25 51 8 16 15 30 " 112 8 15 21 21 23 27 "'"- n.a 21 21 23 27 Cum, FV9S196-04/05 UnitsRemo~d 55 13 10 1 79 T"laIReptacemenIReo,,',ed 46 10 8 "a 64 ".",'",.w._¡Bed'Ooms 72 22 15 n.a.l09 Tolal Replocomenl A'ellable .. 107 '88 15 ".a. 510 Total Replacement adrms 122 606 45 ".e. 773 .. R",laceme,,1 U"its les' Production U,,1t OWiga'on C"m. FV 95)95-04/05 Reptaceme,,' Un;' Bata"ce Replacemenl Bdnn. Ba/a""" 116 116 22 94 8 8 11 (3j 10 8 0 ¡¡ 61 7i 7 30 446 .., CUMULATIVE AFFORDAaLE HOUSING PRODUCTION 378 690 n_a. n.a. 415 6 0 230 346 0 na. 116 32 n.". 54 (32) "a. 62 15 327 765 219 "a. 233 17 ".a. 28 209 n.a 206 10 44 112 7 "a. 37 0 ".a. 0 26 ".a. 37 31 79 130 28 ".a. 44 0 n.a. 0 36 ".a. 44 155 143 33 37 19 10 8 0 U"i" ProducedlRe"rlc"d Re ulred ,e<vlow Iow'moderale noresmcl TOTAL 462 T3 0 5& 254 49 680 n.a. n.a. 1353 430 82 'slimalodFV05tO6-09l'O Cum. Rep/"eme,,' Req,,""d 6 3 0 ",. 9 .,. """'row"""') Bed'Oom. 12 6 0 ".a. 18 Cum. Replacome'" A.allable 69 388 35 n.a. 490 Cum. Replacomenl adnns 95 614 114 n.a. 823 Rep/aceme,,' Unll aa/a"ce Replaeeme,,1 Bd,m. Bala""" E."",aledFYI0111-14/15 Tota! Rep/aco",en! R",ul<ed 0 0 0 0 0 ',e ""','ow.-I Bedmom. 0 0 0 0 0 Tolal Aeplacemenl A"Uable 71 391 60 ".a. 522 Tolal Replacemenl Bdrms 99 624 164 n.a. 887 'eplaceme,,' Ba/a"ce/(Del;cll) I 71 I _~91 I 60 I n.a. I 522 I '(e_1 FY 95/96-04/05 Cum. Unlla Produced 145 452 26 60f 1,223 Cum. Rea"'cled Unlla Pro"ded 135 25 226 n.a. 386 Cum- Reslrlcted Unlla Required 33 0 49 n.a. 82 C"m. ~::'~;;;:'::';~;:;;¡~""'I"'~:-! 201 I n.8. I 303 I 'allmated FV 05106 - 09110 C"m. Unlls Pmduced Cum. Rea"'eted Uni" Pro,'ded Cum. Rea"'cled Unl" Raquiled Cum. Res"letedBala"ce/(Deflclf) I 110 I 237 I n.a. I 347 I . (um"1 Tustin Community Redevelopment Agency Town Center and South Central Redevelopment Projects Esllma'eded FV 10111 -14)15 Toiol Unll. P,od"ced Reslde/ed Units P","ided Restricted V,,'ts Reou""d 25 25 9 13 "'"- n.a. 54 41 0 Cum-P,oductlonSu<plu<l(Deficit) I 114 1- I 261 I n.a. I 375 I Third Five-Year Implementation Plan Fiscal Year 2005-2006 through 2009-2010