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HomeMy WebLinkAboutRDA RES 07-01 RDA RESOLUTION NO. 07-01 RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY MAKING FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445 FOR ACQUISITION OF PROPERTY AND RIGHT- OF-WAY NECESSARY TO CONSTRUCT THE PHASE I NEWPORT AVENUE EXTENSION/NORTHBOUND SR-55 RAMP RECONFIGURATION/EDINGER AVENUE WIDENING PROJECT IMPROVEMENTS THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY FINDS: Whereas, pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Community Redevelopment Agency of the City of Tustin (the "Agency") is carrying out the Redevelopment Plan (the "MCAS Tustin Redevelopment Plan") for the MCAS Tustin Redevelopment Project (the "MCAS Tustin Redevelopment Project"); and Whereas, Section 33445 of the California Community Redevelopment Law provides that a redevelopment agency is authorized, with the consent of the legislative body, to pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement which is publicly owned either within or without the project area if the legislative body determines that: (1) the buildings, facilities, structures, or other improvements are of benefit to the project area or the immediate neighborhood in which the project is located; and (2) no other reasonable means of financing the buildings, facilities, structures, or other improvements, are available to the community; and (3) the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements will assist in the elimination of one or more blighting conditions inside the project area; and (4) the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements is consistent with the implementation plan adopted pursuant to Section 33490 of the Community Redevelopment Law; and Whereas, the City has obtained an order for prejudgment possession for portions of Orange County Assessor's Parcels 430-251-01,02,03,06,07,08 and 011 (the "Right- of-Way Property") owned by AAE Pacific Park Associates, LLC ( "AAE") for the purpose of constructing: 1. Certain street widening improvements on Edinger Avenue from the westerly boundary of the City of Tustin to just east of Red Hill Avenue, including associated improvements at the Red Hill Avenue and SR-55 ramp intersections; and RDA Resolution No. 07-01 Page 1 of 8 2. The Phase I Newport Avenue Extension project from Edinger Avenue south to Valencia Avenue, including the construction of six lanes and relocation of the SR-55 north-bound ramps to south of Edinger Avenue, together with associated improvements at the Edinger Avenue intersection and improvements and modifications to Del Amo Avenue (collectively, the "Street Improvements"); and Whereas, the Right-of-Way Property and Street Improvements are all located within the boundaries of the South Central Redevelopment Project, as amended (the "South Central Redevelopment Project"); and Whereas, in order to complete the acquisition of the Right-of-Way Property, the City and AAE have stipulated that certain additional real property owned by AAE and adjoining the Right-of-Way Property (the "Additional Property") must also be acquired by the City; and Whereas, the Street Improvements have been identified in environmental impact reports prepared for the South Central Redevelopment Project, MCAS Tustin Redevelopment Project and Tustin Legacy Project as necessary to provide primary arterial access to both the South Central and MCAS Tustin Redevelopment Projects and were identified as committed improvements in the Joint Final Environmental Impact Statement/Environmental Impact Report for the disposal and reuse of the Tustin Marine Corps Air Station certified by the City of Tustin on January 16, 2001, and supplemented by an addendum dated April, 2006 (the "Final Program EIR"); and Whereas, additional costs are now anticipated as a result of the need to acquire the Additional Property, increasing land acquisition and improvement costs for the Street Improvements including actual construction, engineering and design costs; and Whereas, without securing additional financing for the Street Improvements, implementation of the MCAS Tustin Redevelopment Project, including, without limitation, the Tustin Legacy Project would be significantly negatively impacted in that the Street Improvements were identified as committed improvements and the inability to construct these Street Improvements would result in delays and preclude the full implementation of the MCAS Tustin Redevelopment Project and the Tustin Legacy Project and result in concomitant adverse environmental and social impacts to the community. NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN DOES HEREBY RESOLVE AS FOLLOWS: Section 1. In accordance with section 33445(a)(1) of the Community Redevelopment Law, the Agency hereby finds and determines that the acquisition of land and cost of the installation and construction of the Street Improvements will benefit the MCAS Tustin Redevelopment Project Area. The foregoing finding is based on the following facts: RDA Resolution No. 07-01 Page 2 of 8 (a) The Tustin Legacy Project is located within the MCAS Tustin Redevelopment Project Area. (b) The Final Program EIR assumes completion of the Street Improvements in order to provide improved traffic circulation within the project and mitigate unacceptable levels of service at key intersections. (c) Currently, the Tustin Legacy Project is a dilapidated neighborhood blight that has been declared surplus former military property and has largely been vacant since the site was vacated by the military. The Tustin Police Department reports that, in its present state, the MCAS Tustin Project attracts constant trespassers and vandals. (d) The Tustin Legacy Project will improve the MCAS Tustin Redevelopment Project by transforming this blight into a well-maintained master planned community which provides the following community benefits: elimination of blighting influences in the MCAS Tustin Redevelopment Project Area by placing vacant parcels of land into productive use; the assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the MCAS Tustin Redevelopment Project Area; the reuse and redevelopment of portions of the MCAS Tustin Redevelopment Project Area which are improperly utilized, the strengthening of the economic base of the MCAS Tustin Redevelopment Project Area by stimulating new investment and economic growth; the creation of job opportunities; the expansion and improvement of the community's supply of affordable housing, and the installation of new or replacement of existing public improvements, facilities and utilities in areas currently inadequately served with regard to such improvements, facilities and utilities. (e) The Street Improvements are required to provide primary access routes to the Tustin Legacy Project. (f) Construction of the Street Improvements will also benefit the MCAS Tustin Redevelopment Project Area by stimulating and encouraging the build-out of the Tustin Legacy Project and avoiding delays in full implementation of that project. Section 2. In accordance with section 33445(a)(1) of the Community Redevelopment Law, the Agency hereby finds and determines that acquisition of land for the Street Improvements and construction of the Street Improvements will benefit the immediate neighborhood of the MCAS Tustin Redevelopment Project Area. The foregoing finding is based upon the following facts: RDA Resolution No. 07-01 Page 3 of 8 (a) The Street Improvements are located within the South Central Redevelopment Project Area which is immediately adjacent to the MCAS Tustin Redevelopment Project Area. (b) The Street Improvements will improve the carrying capacity of the public streets which serve as the primary access routes for both the MCAS Tustin Redevelopment Project Area and the South Central Redevelopment Project Area, thereby assisting in transforming both the South Central Redevelopment Project Area and the MCAS Tustin Redevelopment Project Area from their current state of dilapidation into community assets. Section 3. In accordance with Section 33445(a)(2) of the Community Redevelopment Law, the Agency hereby finds and determines that there are no other reasonable means available to the community for financing the additional acquisition costs of the Street Improvements to be paid for by the Agency. While common sources of financing street improvements include the Gas Tax, General Fund, Redevelopment Agency Capital Project Fund, and State and Federal Highway Grants, these sources have been used to finance the Street Improvements to date and are now exhausted and not reasonably available to the community for financing the additional acquisition and construction costs. Specifically: (a) Gas Tax. Over the past two years, revenue in the gas tax fund has remained constant while, during this same period, routine annual expenditures in this fund have increased. As a result, sufficient gas tax funding will not be available for capital projects next year nor to allocate for the additional costs anticipated for the Street Improvements. (b) General Fund. Over the past two fiscal years the City has been unable to appropriate more than $4,500,000 in additional funds towards the Street Improvements. Increasing operating costs and declining revenues have significantly reduced general funds available for capital improvement projects. Specifically, increases in retirement and workers compensation costs and revenue losses due to the State's financial hardship have prevented the general fund from funding the increased costs of the Street Improvements as a capital project funding source. (c) Redevelopment Agency - South Central Redevelopment Project Area Improvement Fund. Currently there is capital improvement funds budgeted in the South Central Redevelopment Project Area of approximately $5,800,000 for the Street Improvements. The additional acquisition and construction costs of these Street Improvements are expected to exceed $34,000,000. Approximately $14,000,000, the total projected Fund Balance of the Redevelopment Project Area, is currently encumbered for Phase Two of the extension of Newport Avenue portion of this project, the extension of Newport A venue north to Sycamore Avenue. The budgeted RDA Resolution No. 07-01 Page 4 of 8 cost of the Phase Two extension project is $39,800,000. There are no additional resources available in the South Central Redevelopment Project Area to complete the Street Improvements. (d) State and Federal Highway Grants. Historically, road projects in the City have received significant funding from State and Federal Highway Grants which are administered and allocated through the Orange County Transportation Agency (the "OCTA"). Two circumstances have depleted the availability of this revenue source for the City this fiscal year and in subsequent fiscal years. First, the OCT A has already provided $22,101,428 to fund a portion of the Street Improvement costs including $12,135,440 for Edinger Avenue widening and $9,965,988 for the Phase I Newport Extension! SR-55 Northbound Ramp Reconfiguration Project. Second, due to California's economy, State transportation funds have been depleted and there is less money for the OCT A to allocate. (e) California Infrastructure State Revolving Fund ("ISRF") Program. The California Infrastructure and Economic Development Bank ("I-Bank") provides low-cost financing through its ISRF Program to public agencies, including cities and redevelopment agencies, for a wide variety of infrastructure projects including the construction, renovation and acquisition of city streets. The ISRF Program is funded through a combination of State I-Bank funds and revenue bond proceeds. The maximum amount of ISRF Program loans that any city can receive within a fiscal year is $20,000,000 with a maximum of $10,000,000 per project loan. The I-Bank will consider the following four sources for loan repayment: special enterprise funds such as the City's Gas Tax fund; tax increment funds; the City's General Fund; and/or special taxes from benefit assessment districts or community facilities districts. Sections 3( a) and 3(b) clearly describe why neither gas tax funds nor the General Fund are available sources for repayment. In addition, the proposed property to be acquired does not fall within the boundaries of a voter approved benefits assessment district or community facilities district. Therefore, the only source available to the City for repayment of an ISRF Program loan would be tax increment. Section 4. In accordance with Section 33445(a)(3) of the Community Redevelopment Law, the Agency hereby finds and determines that the payment by the Agency for the cost of land for and the cost of installation and construction of the Street Improvements will assist in the elimination of one or more blighting conditions inside the MCAS Tustin Redevelopment Project Area. The foregoing finding is based on the following facts: (a) As set forth in the Community Redevelopment Law, the existence of buildings such as the those that exist within the MCAS Tustin Redevelopment Project Area, in which it is unsafe or unhealthy for persons to live or work, are conditions that cause blight. RDA Resolution No. 07-01 Page 5 of 8 (b) Large portions of the Tustin Legacy project have been vacant and unkempt since the land was vacated by the military. Dilapidated buildings located in the former base were designed primarily for military-specific aviation operations and these buildings do not have the appropriate capacity or utility for civilian reuse, nor would they be compatible or consistent with the current market uses identified in the Redevelopment Plan for the MCAS Tustin Redevelopment Project Area. (c) Structures in the Tustin Legacy Project are both unsafe and unhealthy as they lack many services such as basic plumbing and electricity and do not meet basic habitability standards. Infrastructure and utilities also represent a major constraint to the effective development of the Tustin Legacy Project, requiring significant new installations and replacements. (d) Both on-site and off-site transportation/circulation systems within the MCAS Tustin Redevelopment Project lack the additional capacity needed to serve uses proposed with the Tustin Legacy Project without major new street improvements to enhance capacity. (e) Development of the Tustin Legacy Project will replace the existing blighted conditions within the MCAS Tustin Redevelopment Project with a modern, safe and well-maintained master planned community. Construction of the Street Improvements is necessary for the development of the Tustin Legacy Project. Section 5. In accordance with Section 33445(a)(3) of the Community Redevelopment Law, the Agency hereby finds and determines that payment by the Agency of the cost land for and the cost of construction and installation of the Street Improvements is consistent with the MCAS Tustin Redevelopment Plan and the Five-Year Implementation Plan adopted by the agency for the MCAS Tustin Redevelopment Project Area pursuant to Section 33490 of the Community Redevelopment Law. The foregoing finding is based upon the following facts: (a) Attachment 3 of the MCAS Tustin Redevelopment Plan specifically identifies as an authorized use of Agency resources off-site transportation circulation mitigation which would add lanes, change lane movements, or enhance intersections to increase roadway capacity to reduce any impacts of development within the MCAS Tustin Redevelopment Project Area and to increase operational efficiency. This includes the acquisition of additional rights-of-way necessary for the off-site transportation/circulation improvements for the benefit of the Project Area. (b) The Agency's 2003 I mplementation Plan (the "I mplementation Plan") identifies the objective of installation of new or replacement of existing public improvements and utilities in areas which are inadequately served RDA Resolution No. 07-01 Page 6 of 8 with regard to such improvements, facilities, and utilities. The improvement and/or extension of existing roadway systems is specifically identified, including off-site roadway EIS/EIR traffic mitigations/dedications. The Implementation Plan notes that the installation of such improvements is for the express purpose of aiding in the redevelopment of the MCAS Tustin Redevelopment Project, eliminating blight and providing the community benefits articulated above. Section 6. The Agency hereby approves and authorizes the Executive Director to pay from Agency funds derived from the MCAS Tustin Redevelopment Project the cost of acquisition of land, installation and construction of the Street Improvements, as defined herein (and including engineering and legal costs), in the amount necessary to conclude all litigation related to the Street Improvements and to complete construction of said Street Improvements. --# j~ LOU BONE, Chair ATTEST: Recording Secretary RDA Resolution No. 07-01 Page 7 of 8 STATE OF CALIFORNIA ) COUNTY OF ORANGE) SS 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 Redevelopment Agency of the City of Tustin is five; that the above and forgoing RDA Resolution No. 07-01 was duly passed and adopted at a regular meeting of the Tustin Community Redevelopment Agency, held on March 20, 2007, by the following vote: AGENCYMEMBER AYES: Bone. Amante. Davert. Kawashima, Palmer (5) AGENCYMEMBER NOES: None (0) AGENCYMEMBER ABSTAINED: None (0) AGENCYMEMBER ABSENT: None (0) PAMELA STOKER, Recording Secretary RDA Resolution No. 07-01 Page 8 of 8