Loading...
HomeMy WebLinkAbout9/30/1997I 2 3. Ul t Y Ur VIAMUN1) 13AX AN VIAIVIUIVIJ tiAN. REDEVELOPMENT AGENCY TOWN HALL MEETING SOUTH POINTE MIDDLE SCHOOL MULTI-PURPOSE ROOM 20671 LARKSTONE DRIVE DIAMOND BAR, CALIFORNIA TUESDAY, SEPTEMBER 30, 1997 6:30 P.M. TO 9:30 P.M. AGENDA CALL TO ORDER/ROLL CALL MAYOR HUFF/DBRDA CHAIR WERNER WELCOME AND INTRODUCTION OVERVIEW OF REDEVELOPMENT 4. OVERVIEW OF THE ECONOMIC REVITALIZATION AREA PLAN 5. QUESTIONS AND COMMENTS ABOUT REDEVELOPMENT AND THE REVITALIZATION AREA PLAN TERRY BELANGER, CITY MANAGER TERRY BELANGER, CITY MANAGER COUNCIL/BOARD, STAFF AND MEETING ATTENDEES 6. WRAP UP AND NEXT MEETING COUNCILBOARD AND PLAN STAFF 7. ADJOURNMENT MAYOR HUFF, DBRDA CHAIR WERNER i -4*1 VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: FROM: ADDRESS: ORGANIZATION: ,AGENDA #/SUBJECT: Cl CLERK r � L11 DATE: PHONE:�`h I expect to address the Council on the subjec agenda item. Please have the Council Minutes reflect my name and address as written above. Signature 11 VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: CITY CLERK FROM: ✓ q -41k, -- ADDRESS: ORGANIZATION: AGENDA #/SUBJECT: DATE: PHONE: I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my name and address as written above. Ax�-jagtur2�'� VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: FROM: ADDRESS: ORGANIZATION: AGENDA #/SUBJECT: CITY CLERK / Oq s c H A P DATE: PHONE: expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my name and address as written above. r Si9 na C � I expect to address the Council on the subject agenda item. Please have the Council Minutes reflect my name and address as written above. Signature Signature Martha Bruske Kevin House Matt Tresaugue 600 Great Bend Drive 2536 Harmony Hill Daily Bulletin Diamond Bar, CA 91765 Diamond Bar, CA 91765 2041 Fourth Street Ontario, CA 91761 Mr. & Mrs. Jerry Hamilton 1429 Copper Mountain Drive Diamond Bar, CA 91765 Robert Arceo 1106 Cleghorn Drive Diamond Bar, CA 91765 Clyde Hennessee 22702 Sunset Crossing Diamond Bar, CA 91765 Catherine M. Jameson 415 S. Del Sol Diamond Bar, CA 91765 Ron Everett 2618 Rocky Trail Road Diamond Bar, CA 91765 Frank Dursa 2533 Harmony Hill Diamond Bar, CA 91765 Mr. & Mrs. Mike Elfelt 21119 Silver Cloud Drive Diamond Bar, CA 91765 Gary Neely c/o diamond Bar Caucus 1155 S. Diamond Bar Blvd Diamond Bar, CA 91765 Marc Campos Daily Bulletin 2041 Fourth Street Ontario, CA 91761 Wilbur G. Smith 21630 Fairwind Lane Diamond Bar, CA 91765 Wen Pin Chang 1011 Summitridge Drive Diamond Bar, CA 91765 Stephen E. Nice 2621 Rising Star Drive Diamond Bar, CA 91765 A] Rumpilla 23958 Golden Springs Drive Diamond Bar, CA 91765 Debby O'Connor 23725 Bower Cascade Diamond Bar, CA 91765 Jack Gutowski 1856 Kiowa Crest Drive Diamond Bar, CA 91765 Joe Ruzicka 22311 Birdseye Drive Ste. "R" Diamond Bar, CA 91765 Mike Goldenberg 1859 Morning Canyon Dr. Diamond Bar, CA 91765 Mr. & Mrs. Bunta 20793 E. Rim Lane Diamond Bar, CA 91765 Mary De Ortiz 221 Eagles Nest Drive Diamond Bar, CA 91765 Terry Birrell 1528 S. Gold Canyon Diamond Bar, CA 91789 Mr. & Mrs. Don Schad 451 Covered Wagon Drive Diamond Bar, CA 91765 Mr. & Mrs. Dexter MacBride 435 Willapa Diamond Bar, CA 91765 Aziz Ansari 1823 S. Clilfbranch Drive Diamond Bar, CA 91765 Albert Perez, Jr. 703 Pantera Drive Diamond Bar, CA 91765 Jim Paul Jong M. Lee Tom Ortiz 1269 Ahtena Drive 2177 Rocky View Road 3308 Hawkwood Road Diamond Bar, CA 91789 Dianond Bar, CA 91765 Diamond Bar, CA 91765 CITY OF DIAMOND BAR AND DIAMOND BAR REDEVELOPMENT AGENCY JOINT TOWN HALL MEETING AUGUST 23,1997 CALL TO ORDER: Mayor Pro Tem Herrera and Diamond Bar Redevelopment Agency Chairman Werner called the meeting to order at 9:00 a.m. in the SCAQMD Auditorium, 21865 E. Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Mayor Pro Tem Herrera. CITY COUNCIL ROLL CALL: Council Members Ansari, Harmony, Werner, and Mayor Pro Tem Herrera. Mayor Huff was excused. REDEVELOPMENT AGENCY ROLL CALL: Agency Members Ansari, Harmony, Herrera, and Chairman Werner. Vice Chairman Huff was excused. Also Present were: Terrence L. Belanger, City Manager and Redevelopment Agency Executive Director and Lynda Burgess, City Clerk and Redevelopment Agency Secretary. CM/ED/Belanger stated that this meeting would be the first in a series of 5 City Council Town Hall meetings on the subject of redevelopment. Tentative dates have been set for future meetings to be held on September 20, October 25, November 22 and December 20, 1997, at the following locations: Diamond Point Club House, Heritage Park Community Center, South Point Middle School and SCAQMD. He then explained that redevelopment is a process that makes available financial resources to eliminate or alleviate economic and physical blight. The financial resources are derived by receiving a greater percentage of the incremental increases in property taxes collected from property owners within a project area. Using handouts, charts and graphs, he explained the redevelopment process. C/AM/Harmony asked if Council and the Redevelopment Agency could have taken eminent domain out of the Redevelopment Plan. CM/ED/Belanger indicated that three affirmative votes would be required to amend the Plan or to amend a Resolution. A Redevelopment Agency could commence without the provisions of eminent domain. The Plan could be amended by a 2/3 majority to add eminent domain back into the Plan. In response to C/AM/Ansari, CM/ED/Belanger explained that eminent domain is AUGUST 23 1997 PAGE 2 TOV`JN HALL MTG available only to a Redevelopment Agency within a Project Area for the first twelve years of the Plan. The current Plan may be amended to delete eminent domain. In response to C/AM/Harmony's question regarding how building a community center would alleviate blight, CM/ED/Belanger responded that findings can be found if evidence is available to substantiate the findings. Every piece of property located within a project area does not necessarily have to have an aspect of "blight." He read from and explained applicable redevelopment law. In response to C/AM/Harmony's question about whether cities could buy back their own bonds, CM/ED/Belanger responded that any city that buys its own bonds is assuming a risk just as any bond purchaser would assume risk. Over the life of the Project Area, the Agency's total ability to bond is limited to $60,000,000. Mrs. Grace MacBride, Willapa Ln., asked where the Redevelopment Agency gets the money to pay back the bonds. CM/ED/Belanger stated that revenues to Redevelopment Agencies are generated from all of the properties within the project area which generate additional tax increment above the tax base for fiscal year 1996/1997 and subsequent years as a result of the statutory 2% multiplier, and through new development and modification to existing property, such as renovation or rehabilitation. Jerry Hamilton, 1429 Copper Mountain Dr., stated that he is a confused homeowner caught in the middle because there are special interest groups that want redevelopment and special interest groups that do not want redevelopment. He said he moved to D.B. because he wanted to live in a rural area. The City's traffic problems are out of sight, so he is happy with what is presently occurring. He does not see that redevelopment is beneficial to the residents. He asked what D.B. will get with a Redevelopment Agency and expressed concern that, as a result of redevelopment, D.B. will have a hospital, a community center and new shopping center which will clog the City's streets. He believed the Council and Redevelopment Agency will have a hard sell to the average homeowner -who need an explanation of what will happen. MPT/AM/Herrera responded to Mr. Hamilton that she did not believe D. B. has large enough parcels of land available to build shopping centers. She explained that she was more concemed with revitalizing the shopping centers that currently exist. One of her goals is to provide a Community Center for D.B. and she was not interested in doing anything that will increase traffic on City streets. Her goal is to eliminate traffic. C/AM/Ansari also explained to Mr. Hamilton that she was interested in AUGUST 23. 1997 PAGE 3 TOWN HALL MTG redevelopment as a revitalization tool and in attracting new business to the vacant spaces in the City. Some of the businesses are decaying and difficult to reach. Redevelopment is a tool that can be used for these purposes with tax monies that would otherwise be lost to D. B. and used in other areas of the State. The City is not looking to build new shopping centers but to install signalization and improve traffic flow at the existing centers. C/AM/Harmony responded to Mr. Hamilton that he believed residents get very little out of redevelopment because it will cut other governmental services such as fire protection that are critical to D.B. C/Chair/Wemer responded to Mr. Hamilton that his major focus was to see that the major redevelopment effort is directed toward public improvements. He indicated that he would like the agency to resolve a major portion of the existing traffic congestion in the City which he believed can be accomplished through intersection redesigns. He further believed that redevelopment can assist a developer or an investor in a commercial development. He pointed out that the Gateway Corporate Center traffic promotes major traffic congestion with its current occupancy. He indicated he would like to see a first time buyer assistance program to enable future generations to acquire property in the City. CM/ED/Belanger responded to Mr. Hamilton that the Redevelopment Plan indicates that it is not a specific plan. The current plan is a document which sets forth the timeline for planning --a significant portion of which is dedicated to making specific plans for the activities that are permitted and anticipated within the Project Area Plan. With regard to what will occur and how it will benefit the homeowner and community, these matters are handled through planning that begins in the next phase of redevelopment. The lowest amount of increment will occur in the first several years of the project. Page C-9 of Section C of the Report to Council calls out a timeline. The next step in the process is to put together the specific plan which will include an analysis of how redevelopment benefits the project area and the goals that are set forth, as well as the benefits to the community. Wilbur Smith, 21630 Fairwind Ln., suggested that the information available in the Preliminary Report be placed in the current plan. He pointed out the disclaimer in Section 7 which states the City does not stand behind the Redevelopment Agency bonds and, as a result, he is concerned that the agency will not have a marketable bond. Further, he expressed concern that even if the Redevelopment Agency does not perform, it will still receive tax increment revenue and the other State taxing agencies will not be getting a share of the increased revenue. He said the plan should contain a statement that says the Redevelopment Agency materially contributes to the improvement or increase in the tax increment. C/AM/Harmony responded to Mr. Smith that if there is no debt, the County will not AUGUST 23 1997 PAGE 4 TOWN HALL MTG pay the tax increment to the Redevelopment Agency. The increment will be passed through to the other agencies. He said it is not clear to him that this agency will generate the type of increment that it claims. C/Chair/Werner agreed with Mr. Smith that the agency should give careful consideration to purchasing bonds. However, the City has adopted a plan and has set the process in motion to proceed. C/AM/Ansari said that if the Redevelopment Agency appears to be a bad risk,. bonds will not be provided. Mike Goldenberg thanked ED/Belanger for providing a clear and concise presentation on the revitalization program. He asked why a familiar group of residents in the City can ask the citizens to provide a plan that will help to revitalize our economic community, place it on the ballot and then sue the City stating the Redevelopment Plan is illegal. The citizens pay the bill. The City's shrinking resources have to be spent on litigation or ballot measures, or both. Would our tax dollars be better spent by providing services to D.B., or should monies be spent on attorneys who do not reside in the City. How will the City get funding to maintain its parks and streets or develop a better library and build a community center. Why are citizens willing to let the County take our property tax dollars and send them to the San Fernando Valley and why do we hesitate in demanding that our property tax dollars be spent locally to provide services that the citizens need desperately. He said he wanted his property tax dollars spent locally and favored having local elected officials develop a plan and spending priorities for the City. C/AM/Harmony responded to Mr. Goldenberg that the D.B. Residents and Business Assn. is not a party to the lawsuit action. He indicated that traditionally, if a City passes illegal legislation and there is no objection within 90 days, it becomes law and no further objection can be lodged. Relative to the current lawsuit, the objections must be filed in court to mark the time. C/ChairN\/erner agreed with Mr. Goldenberg. He indicated that he supported City incorporation and felt that for similar reasons, he wanted the City's tax dollars spent locally. He noted that many of the same people that are suing the City or attempting to hold up the redevelopment process were also opposed to incorporation of the City. Bob Arceo, Senior Citizens Club, said that he was told a Senior Citizens Center would be built starting in July. Further, he indicated he was told that Senior Citizens must go to City Hall for a copy of the Redevelopment Plan. Many Seniors are disabled and cannot drive and they must depend on the mail. He asked if there will be a watchdog committee to make certain how the agency funds are spent. He asked what the agency will do regarding traffic congestion on Grand Ave. south of AUGUST 23 1997 PAGE 5 TOWN HALL '%lTG D.B. Blvd. MPT/AM/Herrera responded to Mr. Arceo that many have expressed an interest in building a community center to benefit the residents. At this time, the City owns one public building—Heritage Paris Community Center --which is primarily devoted to the Senior Citizens Group. The City pays for one liaison for the Senior's group. The Redevelopment Agency Board will monitor spending of the Redevelopment Agency funds which enjoys the same membership as Council. If the public does not like the direction of the members, they can be voted out of office. C/AMIAnsari stated that the senior citizens groups are a priority for the current Council who realizes that a larger facility is needed. However, the seniors are the only group that enjoys its own building. The City does not have a City Hall or Community Center. Grand Ave. presents an ongoing problem that the City is working to resolve. C/Chair/Werner understood Mr. Arceo's concerns and stated that there are many City groups that wish recognition and facilities. Council makes every effort to be fair and equitable across the board with limited resources. Carolyn Elfelt, 21119 Silver Cloud Dr., asked if the City's school districts and fire districts will receive less monies because of redevelopment. She asked that an allocation chart be provided at the next Town Hall Meeting. CM/ED/Belanger responded to Mrs. Elfelt that, under State law, mechanisms exist that deal with school districts and fire districts. School financing has been predominately dictated by the State of California since 1974. The law will be provided at the next Town Hall Meeting. C/AM/Harmony responded to Mrs. Elfelt that the State, under law, supplants the same amount of increment to the school districts. C/Chair/Werner stated that if redevelopment had a significant impact on the City's school districts, he would expect that school district representatives would attend redevelopment agency public hearings and raise objections. Conversely, there may be common ground for the agency to assist the school districts in the event they are unable to perform on their own. Jack Gutowski said that he did not appreciate attacks on a certain group of citizens He believed that citizens who are concerned about excessive shopping center development have a right to be concerned. He was insulted that D.B. High School had become a political action committee in this instance and wanted to know what types of businesses the agency intends to attract to the City. He asked how the City can guarantee businesses will remain in the community after receiving a gift AUGUST 23, 1997 PAGE 6 TOWN HALL MTG of funds. Further, he stated that he wants D.B. to remain a bedroom community MPT/AM/Herrera responded that no one likes slurs against them and resented individuals circulating petitions who state that Council is looking to put money in their pockets because of redevelopment. She has lived in the community for 31 years, was elected by the public, has served the public for 18 years and resents these aspersions on her integrity. She stated that low cost loans would be grants -- not gifts. She believed every citizen needs to be involved in improving D.B. C/AM/Ansari explained that she did not know if the City will lose businesses to other cities after granting redevelopment assistance. The City has to start somewhere. She said she had visited surrounding cities that have successfully used redevelopment to revitalize downtown and other blighted areas. She reiterated her concern to have a project area citizens committee. C/AM/Harmony told Mr. Gutowski that, in his opinion, it had not been proven that the free enterprise system would not correct any little problems that exist. There is no blight in D.B. C/Chair/Werner reported that the plan before the Agency, Council and community is a plan to establish a process. Over the next few years, the plan will be defined. Before any monies can be spent on improvements, public hearings will be held. Clyde Hennessee said he would like to see spending controls placed on the Redevelopment Agency. He reiterated that he wanted redevelopment for the City and he believed other citizens also want redevelopment but they are concerned about how the monies will be used. He expressed concern about future Council Members and wants protection built into the plan so that it cannot be changed. C/AM/Ansari agreed with Mr. Hennessee that D.B. does not have a downtown. Redevelopment could assist with revitalization of certain areas of the City. MPT/AM/Herrera believed that the K -Mart Shopping Center is a good beginning point for redevelopment and she envisioned outdoor eating establishments with trees and gazebos with an entertainment area where citizens can congregate and socialize. She expressed sadness that people were attempting to kill the plan before it is fully developed. C/AM/Harmony stated that businesses are filling up and the economic condition of the City is improving. The City's original statistics are off -target. There is no specific plan. CM/ED/Belanger explained to Mr. Hennessee that the rules that govern the agency's accounting of resources are the same rules that govern municipalities and AUGUST 23 1997 PAGE 7 TOWN HALL MTG other public agencies within the State. A redevelopment agency is a public agency and most cities' redevelopment agency members happen to be Council members. In most cities, those two entities meet at the same time and conduct meetings in a similar fashion. Regarding utilization of redevelopment resources for the development of a commercial property which will generate sales tax on a parcel of five acres or more of land not previously developed for urban uses, the agency is prohibited from using redevelopment funds for that purpose. The Environmental Revitalization Area document does not suggest big box shopping centers for D. B.; rather, it indicates that D.B. cannot compete with such entities and should instead look to itself as a "niche" market and attempt to ascertain its niche in - the marketplace. C/AM/Ansari asked that citizens who did not have an opportunity to speak during this Town Hall Meeting direct their questions to staff. C/Chair/Werner thanked the Town Hall Meeting participants. ADJOURNMENT: There being no further business to conduct, Mayor P7o Tem Herrera and Redevelopment Agency Chairman Werner adjourned the meeting at 12:00 noon. � GUs�iy� LY DA BURGESS, City Clerk and Redevelopment Agency Secretary ATTEST: f Mayor Pro em ATTE�T: i Redevelopment Agency Chairman ECONOMIC REVITALIZATION AREA HOW MANY CITIES ARE THERE IN LOS ANGELES COUNTY? THERE EIGHTY-NINE CITIES IN LOS ANGELES COUNTY. HOW MANY LOS ANGELES COUNTY CITIES HAVE REDEVELOPMENT AGENCIES? SEVENTY-FIVE LOS ANGELES COUNTY CITIES HAVE RDAs. HOW ARE TAXPAYERS PROTECTED FROM REDEVELOPMENT ABUSES? FIRST AND FOREMOST. THE VOTERS OF THE COMMUNITY ELECT THE REDEVELOPMENT AGENCY POLICY MAKERS AND DECISION MAKERS. CITY COUNCILMEMBERS ALSO SERVE AS RDA BOARD MEMBERS. DIAMOND BAR VOTERS HAVE THE POWER TO CHOOSE THOSE INDIVIDUALS THAT REPRESENT THEIR INTERESTS. AS TO FINANCIAL OBLIGATIONS OF THE RDA, THE RDA IS SOLELY RESPONSIBLE FOR ALL IT'S FINANCIAL OBLIGATIONS (LOANS, AGREEMENTS, BONDED DEBT). TAXPAYERS OF THE CITY HAVE NO FINANCIAL OBLIGATION, FOR THE DEBTS OF THE RDA. HOW ARE "BIG BOX " DEVELOPMENTS CONSTRAINED BY REDEVELOPMENT LAW? AB 1290 CONSTRAINS THE DEVELOPMENT OF LARGE ACREAGE RETAIL SHOPPING AREAS BY PROHIBITING THE USE OF SALES TAX AGREEMENTS TO UNDERWRITE THE COSTS ATTRIBUTED TO EITHER THE PURCHASE OF LAND OR OTHER ACTIVITIES THAT WOULD DIRECTLY BENEFIT A DEVELOPER. ALSO, RDA RESOURCES CANNOT BE UTILIZED ON PARCELS OF LAND WHICH ARE FIVE ACRES OR LARGER. RDA QUESTIONS PAGE TWO IT SHOULD BE NOTED THAT REDEVELOPMENT IS A FINANCIAL TOOL AVAILABLE TO A CONaVIUNITY TO REVITALIZE, REJUVENATE AND REHABILITATE PROPERTIES LOCATED WITHIN A PROJECT AREA. HOWEVER, BEFORE ANY USE OF RDA RESOURCES CAN EVEN BE CONSIDERED, ANY AND ALL RETAIL COMMERCIAL DEVELOPMENT PROPOSALS WOULD HAVE TO BE SUBMITTED FOR APPROVAL THROUGH THE CITY'S LAND USE PROCESSES. ALL GENERAL PLAN AND LAND USE PLANNING AND ZONING REQUIREMENTS MUST BE NET AND ALL COMMISSIONS AND THE CITY COUNCIL MUST APPROVE ANY REHABILITATION OR DEVELOPMENT APPLICATION. GIVEN THE LAND ACREAGE REQUIREMENTS OF "BIG BOX" RETAIL SHOPPING CENTERS. THERE WILL NOT BE ANY SUCH SHOPPING AREAS LOCATED IN DIAMOND BAR. WHAT IS THE PLAN FOR THE ECONOMIC REVITALIZATION AREA PLAN IMPLEMENTATION? THE REPORT TO COUNCIL, SECTION "C", SETS FORTH THE TIMEFRAME WITHIN WHICH IMPLEMENTATION PLANS ARE TO BE PREPARED AND APPROVED. THE ADOPTION OF THE ERA PLAN SIGNALS THE BEGINNING OF THE PLANNING PROCESS. OVER THE NEXT FEW YEARS, PROGRAMMATIC PLANS FOR COMMERCIAL/INDUSTRIAL REHABILITATION, BUSINESS EXPANSION AND RETENTION, PARKING IMPROVEMENTS AND PUBLIC INFRASTRUCTURE IMPROVEMENTS WILL BE PREPARED AND IN[PLEMENTED. WHAT PERCENTAGE OF THE PROPERTY TAX DOLLAR DOES THE CITY CURRENTLY RECEIVE? THE CITY RECEIVES 5.3% OF EACH DOLLAR OF PROPERTY TAX. E.G., FOR EACH $100 OF PROPERTY TAX THE CITY RECEIVES $5.30. RDA QUESTIONS PAGE THREE WITH REDEVELOPMENT, WHAT PERCENTAGE OF THE PROPERTY TAX DOLLAR DOES THE CITY RECEIVE? AS REGARDS THE PROPERTY WHICH IS NOT A PART OF THE ECONOMIC REVITALIZATION PLAN AREA, THE AMOUNT OF PROPERTY TAX RECEIVED WILL CONTINUE TO BE SAME,I.E., 5.3% OF EACH PROPERTY TAX DOLLAR. THE PROPERTY WHICH IS NOT A PART OF THE ERA PLAN REPRESENTS 89.5% OF THE TOTAL PROPERTY VALUATION IN THE CITY. THE PROPERTY VALUATION OF THE PROPERTY WITHIN THE ERA PLAN REPRESENTS 10.5% OF THE CITY'S TOTAL PROPERTY VALUATION. THE ERA PLAN'S BASE YEAR IS F 1996-97. THE BASE YEAR SETS THE PROPERTY VALUATION AMOUNT FOR THE ERA PLAN. PROPERTY TAX ALLOCATIONS TO ALL AFFECTED TAXING AGENCIES WILL BE COMPUTED UPON THIS AMOUNT. AFFECTED TAXING AGENCIES WILL CONTINUE TO RECEIVE THIS BASE YEAR AMOUNT THROUGHOUT THE LIFE OF THE ERA. REDEVELOPMENT REVENUES ARE DERIVED BY COLLECTING THE INCREMENTAL INCREASE IN BASE YEAR PROPERTY VALUATION AND ALLOCATING THESE INCREMENTAL TAX AMOUNTS IN THE FOLLOWING MANNER: 20% TO HOUSING SET- ASIDE; 25% OF THE REMAINING 80% TO AFFECTED TAXING AGENCIES; THE REMAINING 60% TO THE RDA FOR NON -HOUSING ACTIVITIES. SECTION C Implementation Plan That Describes Specific Goals, Projects, and Expenditures Proposed to be Made Within the First Five Years and a Description of How These Projects Will improve or Alleviate Blighting Conditions This document presents the Five -Year Implementation Plan ("Implementation Plan") for the Diamond Bar Economic Revitalization Area of the Diamond Bar Redevelopment Agency. This Implementation Plan meets the requirements of Section 33490 of the CRL, which was added to the CRL by the adoption of Assembly Bill 1290 in 1993, and later amended by Senate Bill 732 on September 28, 1994. Section 33352(c) of the CRL requires that the Agency prepare and adopt an implementation plan that presents the following: 1) specific goals; 2) anticipated programs, projects, and related expenditures proposed to be made during the next five years; and 3) an explanation of how the programs, projects, and related expenditures will eliminate blight within the Project Area. Pursuant to Section 33490(b), the Agency shall adopt an implementation plan every five years commencing with the fifth year after the Redevelopment Plan is adopted. Finally, Section 33490(c) provides that the Agency shall hold a public hearing to review the Redevelopment Plan and the corresponding adopted Implementation Plan no earlier than two years, and no later than three years, after the Implementation Plan has been adopted. Pursuant to Section 33490(a), this Implementation Plan presents: • Agency goals for the Project Area. • Agency programs (including potential projects) and/or estimated expenditures planned for the next five years. • An explanation of how these goals, projects, and expenditures will eliminate blight in the Project Area. • An explanation of how these specific goals, objectives, projects, and expenditures will implement Sections 33334.2, 33334.4, 33334.6, and 33413 of the CRL. • Provide an explanation of how these specific goals, projects/programs, and expenditures will implement the low and moderate income housing requirements of the CRL by specifically including the following: Rosenow Spevacek Group, Inc DJ~nd Bar Redevelopment Agency May, 1947 C-1 Report to the City Council An annual housing program for the five-year term of the Implementation Plan that provides sufficient detail to measure performance of housing fund requirements which must be assessed under this Implementation Plan. 2. An enumeration of the number of housing units to be rehabilitated, assisted, price restricted, or destroyed (if any) during the term of the Redevelopment Plan. 3. An outline of the Agency's plan for the utilization of the Low and Moderate Income Housing Fund ("Housing Fund") including annual deposits, transfer of funds, or accruals for special projects. 4. An identification of programs/projects that will result in the destruction of 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 Section 33413 and 33490(a)2 and 3 of the CRL. GOALS AND OBJECTIVES Section 400 of the Redevelopment Plan delineates the Agency's redevelopment goals for the Project Area. These goals, which are listed below, were employed to formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities during the next five years. 1. Implement the policies, goals, objectives and strategies as presented in the General Plan for the City of Diamond Bar. 2. Eliminate and prevent the spread of conditions of blight, including but not limited to; underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, parking deficiencies, and other economic deficiencies, in order to create a more favorable environment for commercial, industrial, office, residential, and recreational development. 3. Provide opportunities for retail and other non-residential commercial and office uses. 4. Promote the economic development of the Project Area by providing an attractive, well -serviced, well -protected environment for all residents and visitors. 5. Improve public facilities and public infrastructure to provide adequate infrastructure facilities and public services. Rosenow Spevacek Group, Inc Diamond Bar Redevelopment Agency May, 1997 C-2 Report to the City Council 6. Promote local job opportunities in the community. 7. Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in the economic revitalization of the Project Area. 8. Implement design and use standards to assure high aesthetic and environmental quality, and provide unity and integrity to developments within the Project Area. 9. Preserve and enhance the unique, open space resources in the community. 10. Provide and regulate the supply of parking to meet the needs of both residents and commercial businesses. 11. Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved infrastructure and public facilities. 12. Recycle and/or develop underutilized parcels to accommodate higher and better economic uses while enhancing the City's financial resources. 13. Increase, improve, and preserve the supply of housing affordable to very low, low and moderate income households. BLIGHTING CONDITIONS The purpose of establishing the Project Area is to address conditions of physical and economic blight. Sections 33030 and 33031 of the CRL defines physical and economic blight as: "(1) An area that is predominately urbanized, as that term is defined in Section 33320.1, and is an area in which the combination of conditions set forth in Section 33031 is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of an area to such an extent that it constitutes a serious physical and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. "(2) An area that is characterized by either of the following: "(A) One or more conditions set forth in any paragraph of subdivision (a) of Section 33031 and one or more conditions set forth in any paragraph of subdivision (b) of Section 33031. Rosenow Spevaeek Group, Inc Dian and Bar Redevelopment Agency May, 1997 C-3 Report to the City Council "(B) The condition described in paragraph (4) of subdivision (a) of Section 33031." Section 33030(c) also states that a "blighted area also may be one that contains the conditions described in subdivision (b) and is, in addition, characterized by the existence of inadequate public improvements, parking facilities, or utilities." Section 33031(a) describes the following "physical conditions that cause blight": "(1) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. "(2) Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. "(3) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. "(4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. Section 33031(b) also describes the following "economic conditions that cause blight": "(1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). "(2) Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. "(3) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. "(4) Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. "(5) A high crime rate that constitutes a serious threat to the public safety and welfare." Rosenow Spevecek Group, Inc. Diamond Bar Redevelopment Agency May, 1997 C-4 Report to the City Council The specific programs and projects contained in this Implementation Plan are designed to alleviate and/or eliminate the conditions of blight in the Project Area, which are listed below: I. Physical Conditions of Blight A. Buildings in which it is unsafe or unhealthy for persons to live or work 1. Deterioration 2. Defective Design or Physical Construction B. Factors that prevent or substantially hinder the economically viable use of capacity of buildings or lots 1. Substandard Design 2. Lack of Parking C. Incompatible Adjacent Uses D. Subdivided Lots of Irregular Form and Shape and Inadequate Size for Proper Usefulness and Development that are Under Multiple Ownership II. Economic Conditions of Blight A. Depreciated or stagnant property values or impaired investments 1. Depreciated Property Values 2. Impaired Investments a. Declining Building Permit Activity b. Hazardous Materials c. Declining Retail Sales Tax Revenues B. Abnormally high business vacancies The Project Area is also characterized by the existence of inadequate public improvements, parking facilities and/or utilities.' The Agency intends to implement specific projects, through the Public Improvements Program, to alleviate this condition identified in Section 33030(c) of the CRL. FINANCIAL RESOURCES The following table presents the nonhousing revenues the Agency may have available over the next five years to fund the Implementation Plan activities. The projections are based on annual increases of 2% for secured assessed values, 0.25% for unsecured values and the added assessed value resulting from new development in the Project Area over the five-year period. Financial Rosenow Speveeek Group, Ine- Dianwnd Bar Redevelopment Agency May, 1997 C-5 Report to the City Council resources available to fund implementation activities in the Project Area include tar increment. and may include bond proceeds, rental income, loan repayments, and interest earnings. Table A presents the annual projected gross tax increment receipts, low and moderate housing set-aside requirement, and payments to affected taxing entities. The remaining net revenues are allocated to "Programs and Projects." TABLE A DIAMOND BAR ECONOMIC REVITALIZATION AREA Programs and Projects Fund Net Rev. for Programs and Projects $0 $140,136 $348,716 $619,291 $856,172 Tables B presents a summary of projected funds which will be available for (non -housing) Project Area Programs and Projects over the next five years. Funding sources include tax increment. These projections assume funding of administrative expenses at a rate of ten percent (10%) per year. For the duration of this Implementation Plan, approximately $1,767,884 should be available to fund nonhousing Programs and Projects. TABLE B DIAMOND BAR ECONOMIC REVITALIZATION AREA Programs and Projects Fund Annual Revenue/AUocations Admin. Tax UM Housing Total Fiscal Increment Set -Aside Pass -Through Year Revenue @ 20% Payments 1997-98 SO SO SO 1998-99 $233,561 $46,712 $46,712 1999-00 $581,193 $116,239 $116,239 2000-01 $1,032,152 $206,430 $206,430 2001-02 $1,426,954 $285,391 $285,391 Programs and Projects Fund Net Rev. for Programs and Projects $0 $140,136 $348,716 $619,291 $856,172 Tables B presents a summary of projected funds which will be available for (non -housing) Project Area Programs and Projects over the next five years. Funding sources include tax increment. These projections assume funding of administrative expenses at a rate of ten percent (10%) per year. For the duration of this Implementation Plan, approximately $1,767,884 should be available to fund nonhousing Programs and Projects. TABLE B DIAMOND BAR ECONOMIC REVITALIZATION AREA Programs and Projects Fund Tax Admin. Fiscal Increment Expenses @ Estimated Year Revenue 10% Total Expenditures Balance 1997-98 $0 $0 $0 $138,000 -$138,000 1998-99 $140,136 $14,014 $126,123 $76,123 -$88,000 1999-00 $348,716 $34,872 $313,844 $263,844 $-38,000 2000-01 $619,291 $61,929 $557,362 $519,362 $0 2001-02 $856,172 $85,617 $770,555 $770,555 $0 Total $1,964,316 $196,432 $1,767,884 Rosenow Spevacek Group, Inc Dianwond Bar Redevelopment Agency May, 1997 C-6 Report to the City Couneii Housing Fund Section 33334.2 of the CRL requires that the Agency set aside not less than twenty percent (20%) of all tax increment revenue allocated to the Agency, pursuant to Section 33670, of the CRL into a separate housing fund account for the Project Area, to be used by the Agency for the purpose of increasing, improving, and preserving the community's supply of low and moderate income housing available at affordable housing cost, to persons and families of low or moderate income and very low income households unless specific findings are made, as set forth in Section 33334.2 of the CRL. Pursuant to Section 33334.2 of the CRL, the Agency will set aside twenty percent (20%) of tax increment revenue allocated to the Agency from the Project Area into a separate housing fund. Table C presents a summary of projected funds which will be set aside and will be available for housing programs over the next five years. Funding sources include tax increment and interest. These projections assume funding of administrative expenses at a rate of ten percent (10%) per year. For the duration of this Implementation Plan, approximately $589,295 should be available to fund housing projects. TABLE C DIAMOND BAR ECONOMIC REVITALIZATION AREA Housing Fund In addition, in Section 33334.4 of the CRL requires the Agency to establish a policy to expend the Low and Moderate Income Housing Funds to assist low and very low income housing in at least the same proportion as the total number of housing units needed for income groups that are not provided by other governmental. programs, as these units related to the total number of units needed for persons of moderate, low, and very low income within the community. Rosenow Spevacek Group, Inc Diamond Bar Redevelopmtnt Agency May, 1997 C-7 Report to Ike City Council LIM Housing Set -Aside Admin. Fiscal @ 20% of Expenses @ Estimated Year Revenue 10% Total Expenditures Balance 1997-98 SO $0 $0 $0 $0 1998-99 $46,712 $4,671 $42,041 $42,041 $0 1999-00 $116,239 $11,624 $104,615 $104,615 $0 2000-01 $206,430 $20,643 $185,787 $185,787 $0 2001-02 $285,391 $28,539 $256,852 $256,852 $0 Total $654,772 $65,477 $589,295 In addition, in Section 33334.4 of the CRL requires the Agency to establish a policy to expend the Low and Moderate Income Housing Funds to assist low and very low income housing in at least the same proportion as the total number of housing units needed for income groups that are not provided by other governmental. programs, as these units related to the total number of units needed for persons of moderate, low, and very low income within the community. Rosenow Spevacek Group, Inc Diamond Bar Redevelopmtnt Agency May, 1997 C-7 Report to Ike City Council FIVE-YEAR PROGRAMS AND EXPENDITURES NONHOUSING PROGRAM • CommerciaVlndustrial Rehabilitation Program The Agency proposes to initiate the first phase of the Commercial/Industrial Rehabilitation Program. Initial activities will focus on the commercial and industrial properties along the primary commercial corridors of the Project Area, such as Diamond Bar Boulevard, Golden Springs Drive, Grand Avenue, Lycoming Street, Lemon Street and Brea Canyon Road, and will include: evaluating existing structures from a structural and design aspect: conducting a "needs" assessment to identify infrastructure, circulation, and parking deficiencies; and commissioning studies to identify both a general design theme and specific design concepts for each property. In addition, the Agency will formulate the program funding strategies and an implementation plan through which rehabilitation assistance will be provided, when sufficient funds are available. The second phase of this effort (the scope of which will be determined by funding availability) may include the provision of property rehabilitation loans and grants and property acquisition. This program to invest in Project Area businesses may also include improvements to business facilities, equipment and required new technology, as permitted by law. • Business Expansion, Attraction and Retention Program The Agency will also implement the Business Expansion, Attraction and Retention Program through the following activities: assessing current marketing strategies, brochures, and other materials; coordinating with the local Chamber of Commerce and/or trade organizations; pursuing actions identified in economic studies recently prepared for the City, including determining the needs of the community; identifying appropriate businesses to attract to the Project Area; and developing a successful marketing strategy to bring these businesses to the City of Diamond Bar. This program to invest in Project Area businesses may also include improvements to business facilities, equipment and required new technology, as permitted by law. • Parking Improvements Program The Agency wishes to move towards the establishment of a Parking Improvements Program. Project Area parking deficiencies will be identified in connection with the Commercial/Industrial Rehabilitation Program. If funds are available, the Agency will initiate parking improvements in identified areas. Rosenow Spevaeek Group, Inc. Diamond Bar Redevelopment Agency May, 1997 C-8 Report to the City Council • Public Facilities and Infrastructure Assistance Program The Agency proposes to initiate the first phase of the Public Facilities and Infrastructure Assistance Program. Initial activities will focus on capital improvements. For example, there are improvements proposed for the Diamond Bar Branch of the public library, located within the Project Area on Grand Avenue. Other activities will include creating a priority list of the public facilities and infrastructure improvements identified in the Redevelopment Plan. If funds are available, the Agency may also initiate various public infrastructure improvements pursuant to the Redevelopment Plan. FIVE-YEAR PLAN ACTIVITIES The Agency will fund the cost of these programs in years 1 through 5. TIMELINE The Agency will establish both the CommerciaHndustrW Rehabilitation Program, the Business Expansion and Retention Program, the Parking Improvements Program and the Public Facilities and Infrastructure Assistance Program in Year 1. The establishment of the programs will require the expenditure of funds. However, due to the fact that no tax increment revenues will be collected by the Agency until Year 2, the Agency will incur costs in Year 1 without tax increment revenues to offset these costs. Such costs will be paid by the Agency through the use of funds advanced to the Agency by the City of Diamond Bar. Therefore, revenues collected in Year 2 will be applied first to the costs of establishing these programs and to reimburse the City. Funds for library improvements mentioned above will be provided in Year 1. The Agency will also prepare site plans, develop design concepts for structures, and determine the type and scale of needed businesses in the Project Area in Year 2. Site and architectural improvements, including, but not limited to, property rehabilitation and/or property acquisition and economic incentive programs will also commence. A marketing strategy for the attraction of businesses will also be provided in Years l and 2 and will be funded by advances from the City. In addition, funds for property owner rehabilitation assistance should be available in Years 3, 4, and 5. Available funds will be allocated to properties within the Project Area based on criteria determined by the Agency, such as financial need and/or level of needed rehabilitation. The development and implementation of a specific marketing program for targeted businesses should occur if funds are available in Year 3. Rosenow Spemeek Group, Inc. Dhumnd Bar Redevelopment Agency May, 1997 C-9 Rtport to the Chy Council PLAN GOALS TO BE ACHIEVED Completion of this program will achieve the following Redevelopment Plan goals: • Implement the policies, goals, objectives and strategies as presented in the General Plan for the City of Diamond Bar. • Eliminate and prevent the spread of conditions of blight, including but not limited to; underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, parking deficiencies, and other economic deficiencies, in order to create a more favorable environment for commercial, industrial, office, residential, and recreational development. • Provide opportunities for retail and other non-residential commercial and office uses. • Promote the economic development of the Project Area by providing an attractive, well -serviced, well -protected environment for all residents and visitors. • Promote local job opportunities in the community. • Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in the economic revitalization of the Project Area. • Implement design and use standards to assure high aesthetic and environmental quality, and provide unity and integrity to developments within the Project Area. • Remove impediments to land disposition and development through the assembly of property into reasonably sized and shaped parcels served by improved infrastructure and public facilities. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency May, 1"7 C-10 Report to the City Council BLIGHTING CONDITIONS ALLEVIATED OR REMOVED BY PROGRAM Completion of these programs will address the following conditions of blight identified in the Project Area: • Deterioration and Dilapidation • Defective Design or Defective Physical Construction • Substandard Design • Lack of Parking • Declining Property Values • Impaired Investments • High Business Vacancies Nonhousing Estimated Expenditures $1,767,884 Rosenow Spevaeek Group, Inc Diotnund Bar Redevelopment Agency May, 1997 C-11 Report to the Chy Council PRO (,R t \l HOUSING PROGRAM Existing land uses in the Project Area primarily include commercial and industrial uses, with only two single-family detached residential units located within the Project Area. These residential units suffer from deterioration and dilapidation, defective design, substandard design and incompatible uses. The Agency will implement a housing program to rehabilitate and improve the existing housing stock citywide. In accordance with this housing program, the Agency will fund housing programs and projects, as prescribed in the following manner: • Housing Stock Evaluation/Prom= Development - The Agency will evaluate the existing housing stock to determine those areas which may require assistance. Once these areas are identified, the Agency will develop a housing program based on this evaluation. • Housina Rehabilitation - The Agency will utilize low and moderate income housing set-aside revenues to rehabilitate the existing housing units throughout the City. This component of the proposed housing program will include the provision of funds through low interest loans and grants to the existing property owners. • First -Time Home Buver Mortgage Assistance - The Agency will utilize low and moderate set-aside revenues to provide first-time home buyers with financial assistance. This will consist primarily of second mortgages to qualified home buyers. FIVE-YEAR PLAN ACTIVITIES The Agency will fund the cost of this program in Years 1 through 5. TIMELINE The Agency will establish the Low and Moderate Income Housing Program in Year 1. Developing this program will involve the expenditure of funds, which will not be available until Year 2. In Year 2, the Agency will assess the need for facilitating and funding rehabilitation activities city-wide. It is the Agency's primary objective to provide low- interest loans or grants to qualifying property owners for the purposes of rehabilitation. Additionally, the Agency will provide qualified first-time home buyers with second mortgages and implement other assistance programs in Years 2 through 5. Low- and moderate -income housing revenues may also be used to implement Objective 3.2 of the Housing Element of the General Plan. This objective calls for the elimination of substandard housing by the establishment of "a program to investigate and encourage the rehabilitation of substandard housing units within Diamond Bar". This objective also sets Rosenow Spemeek Group, Inc Diamnd Bar Redevelopment Agency May, 1997 C-12 Report to the City Council a goal of the "rehabilitation of 5 very low, 5 low, and 15 moderate income household". The Agency will fund these activities as funds become available. PLAN GOALS TO BE ACHIEVED Completion of this program will achieve the following Redevelopment Plan goals: • Implement the policies, goals, objectives and strategies as presented in the General Plan of the City of Diamond Bar. • Eliminate and prevent the spread of conditions of blight, including but not limited to; underutilized properties and deteriorating buildings, incompatible and uneconomic land uses, deficient infrastructure and facilities, obsolete structures, and other economic deficiencies, in order to create a more favorable environment for commercial, industrial, office, residential, and recreational development. • Encourage the cooperation and participation of residents, businesses, business persons, public agencies, and community organizations in the economic revitalization of the Project Area. • Increase, improve, and preserve the supply of housing affordable to very low, low and moderate income households. BLIGHTING CONDITIONS ALLEVIATED OR REMOVED BY PROGRAM The implementation of any program mentioned above would alleviate or eliminate the following blighting conditions: • Improve and increase community supply of affordable housing • Deterioration • Declining Property Values • Incompatible Uses Estimated Expenditures $589,295 Rosanow Spevaeeat Group, Ina Diawwnd Bar Redevelopment Agency May, 1997 C-13 Report to the City Council HOUSING COMPLIANCE PLAN The provisions of Section 33413(b)(4) of the CRL require the Agency to adopt and periodically update a plan to ensure compliance with the existing criteria of Section 33413 of the CRL regarding the affordability mix of new or rehabilitated housing units ("Housing Compliance Plan'). The CRL further requires that this Housing Compliance Plan be prepared as part of the implementation plan required by Section 33490 of the CRL. This Housing Compliance Plan must be consistent with the jurisdiction's housing element and must also be reviewed and, if necessary, amended at least every five (5) years with either the housing element cycle or the implementation plan cycle. The housing compliance plan shall contain all of the requirements pursuant to Section 33490 (a)(2) and (3) of the CRL. The following discussions contain all of the required components pursuant to Section 33490(x)(2) of the CRL: 1. The amount available in the Low and Moderate Income Housing Fund and the estimated amounts which will be deposited in the Low and Moderate Income Housing Fund during each of the next five years. As previously mentioned above in Table C, the estimated revenue which will be deposited in the Low and Moderate Income Housing Fund during the next five years is estimated to be $589,295. 2. A housing program with estimates of the number of new, rehabilitated, or price - restricted units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years. Nearly all property in the Project Area is zoned for commercial or industrial uses, with only two residential units. These units consist of single family detached homes which are directly adjacent to commercial and industrial properties. The Agency does not anticipate the construction of any new residential units during the first five years of the Redevelopment Plan because that there are limited revenues generated by the Project. The Agency estimates that it will be able to assist in the rehabilitation of 3 to 5 units city- wide in Years 1 through 5 of the Redevelopment Plan. As shown above in Table C, the estimated expenditures from the Low and Moderate Income Housing Fund is $0 in Year 1, $42,041 in Year 2, $104,615 in Year 3, $185,787 in Year 4, And $256,852 in Year 5, for a five-year total of $589,295. Romow Spevacek Grorp, lac. Dlatnond Bar RedewJopnunt Agency May, 1997 C-14 Report to I*e City Council 3. An estimate of the number of new, substantially rehabilitated or price -restricted residential units to be developed or purchased within the Project Area, both over the life of the Redevelopment Plan and during the next ten years. As stated above, the construction of any new residential units by the Agency is not anticipated at this time, both over the next ten years or over the life of the Redevelopment Plan. There is a limited amount of vacant property within the Project Area zoned for residential uses. In addition, the Agency does not anticipate the substantial rehabilitation of residential units in the Project Area, because the cost of these activities are prohibitive given expected revenues generated by the Project. Therefore, this requirement does not apply. 4. An estimate of the number of units of very low, low- and moderate -income households required to be developed within the Project Area in order to meet the requirements of Section 33413(b)(2) of the CRL, both over the life of the Redevelopment Plan and during the next ten years. The total number of units which are projected to be developed either over the next ten years and over the life of the Redevelopment Plan is 258. Pursuant to Section 33413(b)2, 15% (or 39) of these units must be available at affordable housing cost to persons or families of low or moderate income. It is important to note that the projected number of housing units is an estimate and, therefore, may change over the next 10 years or over the life of the Plan. Thus, the total number of units which must be made available to affordable cost to moderate, low, and very low income households may change accordingly. 5. The number of units of very low, low-, and moderate -income households which have been developed within the Project Area which meet the requirements of Section 33413(bx2) of the CRL. Because the proposed Redevelopment Plan is in the process of being adopted and the Project Area has not yet officially been created, this requirement does not apply. 6. An estimate of the number of Agency developed residential units which will be developed during the next five years, if any, which will be governed by Section 33413(bxl). The Agency does not anticipate developing any residential units during the next five years, and any units rehabilitated with Agency assistance will house low or moderate income households. Rosenow Spemeek Gmap, Inc. Dianwnd Bar Redevelopment Agency May, IM C-15 Report to tke City Council 7. An estimate of the number of Agency developed units for very low, low-, and moderate income households which will be developed by the Agency during the next five years to meet the requirements of Section 33413(b)(1) of the CRL. The Agency does not anticipate developing any residential units during the next five years. Therefore, the requirements of this section do not apply to the Project. The following discussion contains the required components pursuant to Section 33490(a)(3) of the CRL: Pursuant to Section 33490(a)(3) of the CRL, if the Implementation Plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to Section 33413(a) of the CRL, the Implementation Plan shall identify proposed locations suitable for those replacement dwelling units. The requirements of this section do not apply to the Project, as this Implementation Plan does not propose any projects that will result in the destruction or removal of dwelling units. However, in the event that this occurs, the Agency will comply with the requirements of Section 33413(a) of the CRL. AGENCY MEANS TO ACCOMPLISH REQUIREMENTS The Agency intends to use revenue in the Low and Moderate Income Housing Fund and any other appropriate funds available including, but not limited to, the Department of Housing and Urban Development funds and Community Development Block Grants, and rental subsidies through the Section 8 program. Low income housing tax credits and tax exempt financing mechanisms may also be used by the Agency. Policies and programs such as providing affordable housing incentives for developers, permitting manufactured housing, and inclusionary housing programs will be explored by the Agency. The Agency will also provide rehabilitation loans and grants. GENERAL PLAN COMPLIANCE This Housing Compliance Plan, like the Housing Element in the City's General Plan, focuses on providing suitable housing for City residents including lower income households and has been prepared according to guidelines established in the programs and goals outlined in the Housing Element of the General Plan. Rosenow Spevaeek Group, Ina Diamond Bar Redevelopment Agency May, 1997 C-16 Report to the City Council REDEVELOPMENT REDEVELOPMENT IS A PROCESS THAT MAKES AVAILABLE FINANCIAL RESOURCES TO ELIMINATE OR ALLEVIATE ECONOMIC AND PHYSICAL BLIGHT. THE FINANCIAL RESOURCES ARE DERIVED BY THE RECEIVING OF A GREATER PERCENTAGE OF THE INCREMENTAL INCREASES IN THE PROPERTY TAXES COLLECTED FROM PROPERTY OWNERS, WITHIN THE A PROJECT AREA. EXAMPLE: BASE YEAR: $19000.00 CITY'S SHARE: $ 52.90 THE BASE YEAR PROPERTY TAXES ARE DISTRIBUTED TO AFFECTED TAXING AGENCIES (COUNTY, CITY, SCHOOL DISTRICTS, SPECIAL DISTRICTS, ETC), ON A HISTORICAL PERCENTAGE BASIS. YEAR ONE: $19100.00 BASE YEAR: $19,000.00 ($52.90) INCREMENT: $ 20.00 ($1.06) HOUSING $ 4.00 (20% OF GROSS INCREMENT) PASS THRU $ 4.00 (25% OF INCREMENT NET OF HOUSING SET ASIDE)($.21) AGENCY $ 12.00 ASSEMBLY BILL I290 BECAME EFFECTIVE JANUARY 1, 1994. AB 1290 PROVISIONS APPLY TO A PROJECT AREA PLAN ADOPTED AFTER JANUARY I, 1994. AB 1290 SIGNIFICANTLY CHANGED THE LEGAL STRUCTURE WITHIN WHICH AGENCIES OPERATE. PASS THROUGH TO AFFECTED TAXING AGENCIES IS STATUTORY. PASS THROUGH IS ACCOMPLISHED ON A FORMULA BASIS. A PROJECT AREA HAS STATUTORY "SUNSET" DATES FOR INCURRING DEBT (20 YRS), PLAN IN EFFECT (30 YRS), TIME FOR DEBT PAYMENT (45YRS). PROHIBITS THE USE OF SALES TAX AGREEMENTS AND PROHIBITS DIRECT ASSISTANCE FOR AUTO MALLS (TRANSIENT DEALERSHIPS) AND RETAIL SALES CENTERS/MALLS ON A PARCEL OF LAND WHICH IS 5 ACRES OR MORE. DIAMOND BAR ECONOMIC REVITALIZATION AREA HOW DOES THE ECONOMIC REVITALIZATION AREA AFFECT FIRE SERVICES FUNDING? DIAMOND BAR IS A PART OF THE LOS ANGELES COUNTY CONSOLIDATED FIRE DISTRICT. FIRE SERVICES ARE PROVIDED BY THE LOS ANGELES COUNTY FIRE DEPARTMENT. THERE ARE THREE (3) FIRE STATIONS LOCATED IN DIAMOND BAR (NOS. 119,120,121). THE CITY IS PROTECTED BY THREE (3) ENGINE COMPANIES AND A PARAMEDIC SQUAD. THERE ARE TWELVE (12) FIREFIGHTERS ON DUTY EACH DAY. THE ANNUAL COST FOR FIRE PROTECTION IN DIAMOND BAR IS ESTIMATED TO BE $5,960,892. ANNUAL REVENUES GENERATED FROM WITHIN THE CITY OF DIAMOND BAR ARE AN ESTIMATED $7,030,586. THIS MEANS THAT DIAMOND BAR IS A DONOR CITY BY AN AMOUNT ESTIMATED TO BE $1,069,694. DIAMOND BAR HAS BEEN GENERATING MORE REVENUE THAN HAS BEEN EXPENDED FOR FIRE SERVICES, FOR MANY YEARS. REDEVELOPMENT DOES NOT AFFECT THE AFOREMENTIONED REVENUES. THESE REVENUES ARE BASE YEAR AMOUNTS. THE ECONOMIC REVITALIZATION AREA PROPERTY VALUATION IS 10.53% OF THE TOTAL PROPERTY VALUATION FOR ALL DIAMOND BAR PROPERTY ($387,018,867 DIVIDED BY $3,676,126,836= 10.53%). THIS MEANS THAT 89.47% OF THE PROPERTY VALUATION FROM WHICH PROPERTY TAX IS DERIVED IS NOT AFFECTED BY REDEVELOPMENT. LOW/MODERATE INCOME COMPUTATION VERY LOW Itells MODERATE EXAMPLE: 50% OF MEDIAN INCOME 80% OF MEDIAN INCOME 120% OF MEDIAN INCOME MEDIAN INCOME (4 PERSON HOUSEHOLD): $51,300* VERY LOW $25,650 LOW 5415,050 MODERATE $61,550 * GROSS INCOME FROM ALL SOURCES OF ALL HOUSEHOLD MEMBERS � ƒ ! Z } } , ; ■ 7 � ; $ ; / n % k - 14to a a§ \ 2 n § ƒ o m m § § § � § � \ � = #a § cL ) _ �\I k 10 q {\ § � ] �a- ) I ; $ ; 4 } k - 14to a a§ \ 2 n § ƒ o m m § § § � \ � = § cL ) _ �\I k 10 q {\ § � ] �a- ) I n _ ■ 7 ( \ � � / } � � \ � ; $ ; # � 4 \ 2 n § ƒ o m m § § § � \ � = § cL ) _ �\I k 10 q {\ § � ] �a- I n _ \ � � \ � ^ ■ < ; $ ; # � 4 n § ƒ o m m § § \ � § cL §to § � ] �a- ; $ ; ■ f 7 # � 4 n § ƒ \ \ a § cL §to § � ] �a- .}■ ■ ■ < - ■ 7 ■ f 7 # � 4 » 2 vi § cL §to § � ] �a- .}■ ■ ■ < ■ f 7 vi § � .}■ ■ f 7 DIAMOND BAR ECONOMIC REVITALIZATION AREA TYPICAL TAX RATE ALLOCATIONS BY AFFECTED TAXING AGENCY 10467 001.05 LOS ANGELES COUNTY GENERAL .249871640 001.20 L.A. COUNTY ACCUM CAP OUTLAY .000112634 003.01 L.A. COUNTY LIBRARY .022981910 007.30 CONSOL. FIRE PRO. DIST. OF L.A. CO. .164767204 007.31 L A C FIRE-FFW .006174559 023.06 CO LIGHTING MAINT DIST NO 10006 .008827716 030.10 L.A.CO FL.COM.DR.IMP.DIST.MAIN. .001700091 030.70 LA CO FLOOD CONTROL MAINT .009620904 061.80 GREATER L A CO VECTOR CONTROL .000366464 066.80 CO SANIT DIST NO 21 OPERATING .012533138 146.01 CITY -DIAMOND BAR TD #1 .052937384 365.05 THREE VALLEY RWD ORIG AREA .004210712 370.05 WALNUT VALLEY WATER DISTRICT .000748901 370.07 WALNUT VALL WT DIST IMP DIST#3 .006821294 370.08 WALNUT VALL WT DIST IMP DIST#4 .001657128 400.00 EDUCATIONAL REV AUGMENT. FD .085064506 400.01 EDUCATIONAL AUG FD MOUND .133937622 400.15 COUNTY SCHOOL SERVICES .001395884 400.21 CHILDRENS INSTEL TUITION FUND .002770019 809.04 MT. SAN ANTONIO COMM. COLL. .029897713 809.20 MT. SAN ANTONIO CHIL. CTR. FD .000288964 980.03 WALNUT VALLEY UNIF.SCH.DIST. .194724692 980.06 CO. SCH. SERV. FD -WALNUT VALLEY .007739118 980.07 DEV. CTR. WDCPD. MINOR-WAL. VY .000849803 TOTAL RATIO: 1.000000000 PROJECTED INCREMENTAL REVENUES TOTAL PASS THRU AGENCY AGENCY/ HOUSING PLAN LIMIT ESTIMATED LIMIT (45 YEARS) $404,532,000 $140,550,000 $183,076,000 $ 8099069000 BONDING CAPACITY (45 YEARS) $60A09000 000 $4698269000 SECTION E METHOD OF FINANCING AND ECONOMIC FEASIBILITY OF THE PROJECT The following changes are required by the deletion of the identified properties: The changes required by the deletion of properties reflect a reduction in the base year secured value of $1,592,844 attributable to the identified properties, and the loss of future tax increment that may have occurred with the redevelopment of the same properties. The following tables in the Report to the City Council have been revised; Table E-1 by Revised E- 1, Table E-2 by Revised R-2, Table E-3 by Revised E-3, and Table E-4 by Revised E-4. REVISED ASSESSMENT OF THE ECONOMIC FEASIBILITY OF THE PROJECT A list of the currently identified proposed redevelopment projects is presented in Table A-1 of this Report. The total proposed project costs to be paid by the Agency are estimated to be approximately $ 180.6 million, including administrative costs. In order to adequately assess the economic feasibility of the Project, the total proposed program/project costs have been compared with the tax increment calculations shown on Revised Table E-1. The project feasibility analysis presented on Revised Table E-3 indicates that approximately $404.5 million of tax increment will be generated by the Project. Of this amount, approximately 81 million is required to be set aside for low and moderate income housing and 140 million must be allocated to the statutory pass-through payments to affected taxing agency pursuant to Section 33607.5 of the CRL. The remaining $183 million will be available to pay for Agency projects, which leaves $2 million of excess revenue. This revenue will provide a hedge against cost inflation which will likely occur during the time frame for implementing projects. As stated above, Revised Table E-1 indicates that the Housing Fund is projected to receive approximately $81 million over the life of the Plan. The Agency intends to use these funds citywide to improve and expand low and moderate income housing opportunities. RosE.vOW SPE VACE1r GROUP, INC. DI,4,WOND OAR REDEVELOPMENT AGENCY MA Y, 1997 13 SUPPLEMENTAL REPORT TO THE CITY COUNCIL I r- a o _j1 W vi O p aN 7 � 7 O by ` S r � aI o T T O � z _ N b o ►� - y s :f s - d h � . _ � vi u � � i PI �/ J o Y g � it =$ Y i k'� 3? r T I • I r�- '� - T .1 - J T Y .� � I ti n i 4 L� y =I � N I Y U I I� !i i2 N^3_ g-n ei of 3 N_ n n N1 4 n n b T 4 n_ H_ D J T V Ni- 1�_ % H_ I n 7 H_ �. n_ n � - - m a n n -IS N T HV F" N T '1J' r; 1 V7. A' H n 1 J -_ T n 7_ _I y i F I. Ni. H T V 1 l n T N .l l 7 :f T 1 Unf V„ F .^ H_I A r !ni V T f N A H_ A- .l N J 3 7 1 T N V N S I !i = n T 7 +i � h M Yf ?� � � � n A h 'J ^ + ;1 � H � - O N "9 � n I � � y 1 >- v .D-. - J_ 3_ > n n 1- ! H n �_ r V N H r_ Tj y f I !» T 1+ N N>> n n ]0 Y��_ N y y CL a Z •� 'J, b - H n C1 r b n 7 yi H 1% F 14k H H b to 'J^J h V A� - g 1 T T H H r _ !1 7 Y T V f r�pp V F 1J1 HIV on O 3 H :i- w 7 i • I r�- '� - T .1 - J T Y .� � I ti n i LL •n I = M . T of ] . . n n _ - - ^ - - - - - - D - I .• • • u I N - + I - - v + - r y 8 � a -i = d :a .� •- yf J J n - n n ❑ � r —. y - 41ni n - s aS i C = +.� Y � � T Y - - jp � - - N b � V a7 N -_ a_ T_ - ~ n N y � n _ J N � _ ^_ _ T -• '� A n J .J_ J_ _ a_ ']. >_ a •oaf 1 f T L n b_ !1_ =_ h_ a_ l T_ J 4 Y% i_ �I N J. 'F1 T a. r_ n_ -1 i� yyt ± Mnf T �1 ti V n ti 1��p �0 .l,I J ai vi n n i m 22 n a�iln � a N I , a no . $ S, y - r rih T = •_ ti rh .. 1 7 = r - A S > - 'A - � •i � sl » T te r: :F> n h r n ti� a :i q i „� n +f �1 T ♦ n n ar . 3 n o '� n M1 r is a i_ �- - h+ I... n; M1 ti a a� _ `; I � I I a a J _ n 7 Tnf T T N a 3S T if h .HT1 1 h> h 1 O- S S S N N O N O N N N N N N N N' N N N w N N N N alg- �j N N N N #I,T » n v T O o !� r r •. N n N i n n s n n j :a a. y T>�- � r N- N T� T n n n _+ - Lk It. a n _ o _ - - - -..- .. .. _ _ _ N N N N y y .i T _ .. .s of �• � 7 . .. a ti n n 7 y x> > r :a a i n- 7 r a .� i- w � O >_ i �, M1_ n. a - Yi u_ h .. r_ r - h J_ L '_ F_ •� F n_ n_ N u .J, - n. a u ii i : i;;; w Win_ L i - _ _ b A - I- N->- J- a S I N v u �• S - ah w f _ _ .. - 7 i s ! 5 u n n vi A � y cr .,'la » : - yi = � � r i � n i T � � _ i t y _ ' �' ..'. > �' i �v'+ �� a _ =i >i_ F •. n_ a o a r o r N_ :a .a. %i r. u � T • r s r 7_ x'_ n_ �:_ �o_ • it H � • � .r. �n_ �'e s. J »� :a - a, n :'+ �+ -+ T n, r_, w a e J a s a ' � a =1 r y - - - - - - - - - I • I , _ T n. n :a F r I'• a a a w r s h a T n o a.� n I :a a y o� n o� T T J T > > a o a F a: F» Z �• +Si i n y O_ N_ 'h V -J 11 "J N l� td T V a N T "J'_ T ffl N a S V-� Y) S N i 9 V n N� f! F_ F♦ "J_ .l n V T- J ? V N !f h I'D 'J'� •��- T I N T a a a T V i YI T> '� >✓1 � a N V - t!_ n �f O_ yl . n h !1 f0 T � !f !1, N n af_ _ a i� r N - •J• "9 i r 7 7 T V :+ i- Yf V n F n .•f fe N � N N N N N N N N N 4 u h I 1 � 3 � • � � � 9 y N y N I a: T I I � •oaf 1 f T L n b_ !1_ =_ h_ a_ l T_ J 4 Y% i_ �I N J. 'F1 T a. r_ n_ -1 i� yyt ± Mnf T �1 ti V n ti 1��p �0 .l,I J ai vi n n i m 22 n a�iln � a N I , a no . $ S, y - r rih T = •_ ti rh .. 1 7 = r - A S > - 'A - � •i � sl » T te r: :F> n h r n ti� a :i q i „� n +f �1 T ♦ n n ar . 3 n o '� n M1 r is a i_ �- - h+ I... n; M1 ti a a� _ `; I � I I a a J _ n 7 Tnf T T N a 3S T if h .HT1 1 h> h 1 O- S S S N N O N O N N N N N N N N' N N N w N N N N alg- �j N N N N #I,T » n v PLAN YEAR 1 2, 3 4 5' 6 7 8 9; 10. 11 12' 13 14' t5� 16 17 18 19' 20( 21' 22 23 24' 251 26' 271 28' 29 30' 31 32 33 34 35 36 37 38, 39 401 41 42, 43 44, 45, Revised TABLE E•3 Diamond Bar Redevelopment Agency Diamond Bar Eccromlc Revitllization Area BONDING CAPACITY (Not to be Used for Financing Purposes) INTEREST RATE 7.00% COVERAGE 'a@ 1.25 ui ;e Vrt ilPW NT i',NO $9.929,937 36 S110,183.68760 $8.099,17134 $9.245.637 02 Totat '- 30 Yr Bond Issue 30 Yr. Bond Issue 30 Yr Band Issue 25 Yr Bona Issue Debt Service Oebt Service Dow Service Debt Service Qebt Service 800,2201 800.2201 800.2201 800.2201 800.220 1 800,220` 800.2201 800.2201 800.2201 800,2201 800.2201 800.2201 800.2201 800.22011 800.2201 800.2Y1) f 800.2201 800.2201 800.2201 800.2201 800.220 1 800.2201 800.2201 800.2201 800.2201 800.2201 800.220 1 t 800.2201 800.2201 800,2201 1 24,008,587 820.8261 820,8261 820, 8261 820.828 820.8261 820.8261 8208261 820.8231 820.926 820.8261 620J28 820.629 820.8261 820.8261 820,8261 820,8261 820,6261 820,8261 820,8261 820.8261 820,8261 820.8281 820,8281 $20.8261 820.6261 820.8281 820.8261 $20,826, 820,8281 820.6261 830.826; 1S.44S.616 TOTAL BONDING CAPACITY $46,us,7s4 652.6991 852.6991 652,6991 652.8991 852,6991 832,699 652.8991 852.6991 652.8991 652.6991 852.8991 652.8991 652.6991 652.6991 652,8991 652,8991 552,6991 652.699 552.6991 652.6991 552.699 652.6991 652.699 652,699 652,899 651.899 852,6991 652.6991 652.8991 652,6991 852.6991 20.233,860 793,373f 793,3711 793.3731 793.3731 793.373! 7933731 793, 3731 793.373; 793.373' 793.3731 793.373! 793.373' 793.373• 793.373' 793,373; 793.373 793.373. 793.373' 793.371: 793,3731 193.3711 793,373. 793.3731 793,3731 793,373; 791,3731 20.'627,693 0 0 0 (800.220) (800,220) (800,220) (800.220) (800.220) (1,821.046) (1.821, 046) (1,621,048) (1,621,048) (1.821,046) (2,273.745) (2.273,745) (2.273.745) (2.273,745) (2.273.745) (3,067,118) (3,067,118) (3.067,118) ( 3.067,118) (3.067,118) (3.087,118) (3067,118) (3.087.118) (3.087,118) (3.067,118) (3.067,118) (3067.118) (3067,118) (3.087,118) (3.067.118) (2.286.899) (2.258.899) (2.268.899) (2.286.899) (2.266.899) (2.286.699) (1,446.072) (1.446,072) (1,44602) (1.446,072) (1,446,072) (90.313.579) REMAINING REVENUE AFTER GEST SERVICE 0 186,334 418.441 732.290 200.055 412.323 $14.528 822.789 1.037.227 405.281 $55.959 712.650 875.578 1.044,984 568,436 751 600 942.055 1,140.095 1,348.022 786.780 1.044,876 1,336.833 1.543.344 1.965,138 2.302,976 2,857,663 3.030.040 3.420, 991 3,831.445 4,262.378 4.639.932 5036.327 5.452.504 5.889 452 7 148 430 7 630 088 8.135.791 8,666.742 9.224, 202 9,809,496 11,244.844 11,690,053 12.567,485 13,278,749 14,025,538 173.666.700 ROSENOW SPEYACEL GROUP, INC. DIAMOND BAR REDEVELOPMENT AGENCY MAY, 1997 15 SUPPLE.ME.VTAL REPORT rO THE CITY COUNCIL THE TAX INCREMENT PROJECTIONS USED IN REVISED TABLES E-1, E-2 AND E-3 ARE SOLELY TO DEMONSTRATE TAX INCREMENT POTENTIAL AND SHOULD NOT BE USED TO SIZE BONDS OR PROJECT ACTUAL FUTURE INCREMENT.' Revised Table E-4 below presents a summary of the project costs, tax increment revenues projected to be available, and a finance plan. The finance plan shows that there is estimated to be sufficient revenue to cover costs and, therefore, the project is economically feasible. Revised Table E-4 DIAMOND BAR REDEVELOPMENT AGENCY DIAMOND BAR ECONOMIC REVITALIZATION AREA PROJECT ECONOMIC FEASIBILITY TAX INCREMENT REVENUE AVAILABLE TO SUPPORT NON -HOUSING PROJECTS Total Tax Increment Revenue Less Low/Moderate Housing Fund Set Aside Less Mandatory -Pass -Through Payments Total Net Tax Increment to Fund Non -Housing Projects NON -HOUSING PROJECT/PROGRAM COSTS Public Improvements/Facilities Projects Commercial/Industrial Rehabilitation Program Business Expansion and Retention Program Parking Improvements Program Subtotal Administrative Costs @ 10% Total Non -Housing Project/Program Costs Net Tax Increment Revenue for Non -Housing Projects Less Total Non -Housing Project/Program Costs $404,531,593 $80,906,319 $140,549,314 $183,075,960 $45,685,000 $40,000,000 $70,000,000 $8,500,000 $164,185,000 $16,418,500 $180,603,500 $2,472,460 ROSENOW SPEVACEX GROUP, INC. DIAMOND BAR REDEVELOP.vENT AGE.vCY MAY, 1997 16 SUPPLEMENTAL REPORT TO THE CITY COUNCIL COPIES OF THE ADOPTED ECONOMIC REVITALIZATION AREA PLAN WERE DISTRIBUTED AT THE AUGUST 23, 1997 TOWN HALL MEETING IF YOU PLAN TO ATTEND THE SEPTEMBER 30, 1997 TOWN HALL MEETING, PLEASE BRING YOUR COPY WITH YOU NOTE: ADDITIONAL COPIES OF THE PLAN WILL BE AVAILABLE AT THE SEPTEMBER 30, 1997 TOWN HALL MEETING CITY OF DIAMOND BAR NOTICE OF PUBLIC FETING AND AFFIDAVIT OF POSTING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF DIAMOND BAR ) The Diamond Bar City Council will hold a Town Hall Meeting in the South Pointe Middle School Multi -Purpose Room, located at 20671 Larkstone Drive, Diamond Bar, California from 6:30 p.m. to 9:30 p.m. on September 30, 1997. I, LYNDA BURGESS declare as follows: I am the City Clerk in the City of Diamond Bar; that a copy of the agenda for the Town Hall Meeting, to be held on September 30, 1997 was posted at their proper locations. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this Notice and Affidavit was executed this 25th day of September, 1997, at Diamond Bar, California. LynBurgess, City Clerk City of Diamond Bar