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HomeMy WebLinkAbout10/28/1996-v F�T�' "�;m 70®0 P.M. South Coast Air Quality Management District Auditorium 21865 East Copley Drive Diamond Bar, California Mike f d n • M Joe i [.• Franklin 'y Joe McManus Don S. Copies of staff reports or other written documentation relating to agenda items are on file in the Community Development Office, located -at 21660 E. Copley Drive, Suit6 190, and are available for public inspection. If you Have questions regarding an agenda item, please call (909) 396-5676 during regular business hours. In an effort to comply with the requirements of Title 11 of the Americans with Disabilities Act of 1990, the City of Diamond Bar requires that any person in need of any type of special equipment, assistance or accomodation(s) in order to communicate at a City public meeting must inform the Community Development Department at (909) 396-5676 a minimum of 72 hours prior to the scheduled meeting. Please refrain from smoking, eating or drinking in the Auditorium The City of Diamond Bar uses recycfed paper and encourages you to do the. same. CITY OF DIAMOND BAR PLANNING COMMISSION AGENDA Monday, October 28, 1996 Next Resolution No. 96-18 CALL TO ORDER: 7:00 p.m. PLEDGE OF ALLEGIANCE: 1. ROLL CALL: COMMISSIONERS: Chairman Mike Goldenberg,, Vice Chairman Joe Ruzicka, Franklin' Fong, Joe McManus and Don Schad 2. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS: This is the time and place for the general public to address the members of the Planning Commission on any item that is within their jurisdiction, allowing the public an opportunity to speak on non-public hearing and non -agenda items. Please complete a Spe I aker**s Card for the recording Secretary (Completion of this form is voluntga).There is'a five minute maximum time limit when addressing the Planning Commission.. 3. CONSENT CALENDAR: The following items listed on the consent calendar areconsidered routine and are approved by a single motion. Consent calendar items may be removed from the agenda by request of the Commission only: 3.1 Minutes of October 14, 1996 4. OLD BUSINESS: None 5. NEW BUSINESS: 5.1 Presentation on the Basics of Redevelopment, Selection of the Diamond Bar Economic Revitalization Area and Approval of the Preliminary Plan Formulated for the Diamond Bar Economic Revitalization Area. In accordance with California Redevelopment Law the Redevelopment A-ency Board has directed the Planning Commission to select a redevelopment project area from within the boundaries of the previously approved survey area and to approve a Preliminary Plan for the selected project area. RECOMMENDATION: Staff recommends that the Planning Commission receive.0 a presentation on redevelopment, adopt a resolution selecting the boundaries of the project' area and approve the Preliminary Plan formulated for the redevelopment of the project area. 1 6. PUBLIC HEARING: 6.1 Development Review No. 94-2(1) A request for a one year Extension of Time (pursuant to Code Section 22.72.160.A.) for a project approved on January 23, 1995. The extension would allow additional time to begin the construction of a 17,867 square foot two story professional office building. Property Address: . 21008 Lycoming Street, Diamond Bar, CA Property Owner/Applicant: G. Miller Development Co., P.O. Box 4682, Diamond Bar, CA 91765 Environmental Determination: Pursuant to the provisions of the California Environmental Quality Act (CEQA), Section 15162(a), the City has determined that the extenstion of time is consistent with the previously approved Negative Declaration No. 94-6. RECOMMENDATION: Staff recommends that the Planning Commission approve Development Review No. 94-2(1) for a one year extension of time, Findings of Fact and conditions as listed within the attached resolution. 8. PLANNING COMMISSION ITEMS: 9. INFORNIATIONAL ITEMS: 10. ADJOURNMENT: November 25, 1996 9 1 MINUTES OF THE CITY OF DIAMOND BAR REGULAR MEETING OF THE PLANNING COMMISSION OCTOBER 14, 1996 CALL TO ORDER: Chairman Goldenberg called the meeting to order at 7:02 p.m. at the South Coast Air Quality Management Auditorium, 21865 East Copley Drive, Diamond Bar, California. PLEDGE OF ALLEGIANCE: The audience was led in the Pledge of Allegiance by Commissioner Schad. ROLL CALL: Present: Chairman Goldenberg, Vice Chairman Ruzicka, and Commissioners Fong, McManus and Schad Also Present: Senior Planner Catherine Johnson and Assistant Planner Ann Lungu. MATTERS FROM THE AUDIENCE/PUBLIC COMMENTS - None - CONSENT CALENDAR: 1. Minutes of September 23, 1996. VC/Ruzicka made a motion, seconded by C/Schad to approve the minutes of September 23, 1996 as corrected. The motion was approved 4-0-1 with Chair/Goldenberg abstaining. OLD BUSINESS: 1. Reconsideration of Planning Commission's meeting day.- SP/Johnson read the staff report into the record. Staf f recommends that the Planning Commission adopt the resolution• amending the June 10, 1996 Planning Commission Policies and Procedures Manual. VC/Ruzicka made a motion, Chair /Goldenberg seconded to change the Planning Commission meeting day to 7:00 p.m. on the second and fourth Tuesday of each month to commence January 1, 1997. Following Commission discussion the motion was carried with the following Roll Call vote: AYES:- COMMISSIONERS: NOES: COMMISSIONERS: ABSTAIN: COMMISSIONERS: ABSENT: COMMISSIONERS: VC/Ruzicka, C/McManus Fong, Schad -None None Chair/Goldenberg, October 14, 1996 Page 2 Planning Commission NEW BUSINESS: 1. Appendix to the Planning commissioner Policies and Procedures Manual. SP/Johnson read the staff report into the record. 'Staff recommends that the Planning Commission adopt the resolution adding Appendix A and B to the existing Planning -Commission Policies and Procedures Manual. C/Schad made a motion, seconded by VC/Ruzicka to adopt the resolution amending the June 10, '1996 Planning Commission Policies and Procedures Manual. The motion was carried 5-0. PUBLIC HEARING - None INFORMATIONAL ITEMS: 1. Presentation of Design Guideline Examples. SP/Johnson presented the staff report. She indicated the purpose of the presentation is to illustrate some of the elements of good design as they are applied to commercial development and more specifically, shopping centers. Design guidelines will be included as part of the new Development Code. These guidelines will be prepared by the planning staff, with -the consulting firm providing only review and guidance. She stated the purpose of these guidelines will not be to impose *rigid design standards in addition to adopted development standards, but to present general principles to aid developers in creating well designed projects that contribute to an attractive City image. VC/Ruzicka asked that staff incorporate simple basic English in design guidelines presentations. He cited the recent city Council decision to overturn the Planning Commission's denial .of the University of Phoenix's Sign Variance. He emphasized that if the Development Code is written for ease of understanding such divergence of philosophies may be avoided. C/McManus asked for additional information regarding business signage. C/Schad stated he is concerned that the business center examples are too repetitive in style and color. He indicated he likes to see interesting and attractive pedestrian walkways separated from shopping center driveway areas. He suggested the Commissioner's present photographs of shopping centers they would like to 'see used as examples for Diamond Bar. C/Fong suggested Diamond Bar incorporate an innovative design theme (Country Living/ Western /Ranchero) in the Development Code consistent with the General Plan's Vision Statement. He October 14, 1996 Page 3 Planning, COMM is S"i 41. cited Cities such as Durango, Colorado, which have incorporated themes in their development and redevelopment. Chair/G . oldenberg stated his concern that the presentation focused on commercial rather than residential. He reminded those present that Transamerica's conceptual plan for Diamond Bar was the country living/ranch style/mission look. He indicated his wish that the City Council establish ish a standing Architectural Review Committee, to review and recommend modifications to the Development Code in coordination with the City's original design intent. He further stated he believes .tonight's presentation is more appropriate to redevelopment. C/Fong stated he would like to see a residential design theme included in the Development Code. He indicated that in his opinion, many homes in "The Country Estates" exceed the boundaries of -a citywide design theme. Chair/Goldenberg concurred with C/Fong. He stated he believes the identity of the city is more important than the identity of a single person. 2. Redevelopment Project Schedule of Actions and Study Area Map. SP/Johnson presentedthe staff report. She indicated the redevelopment consultant, Rosenow Spevacek Group Inc. (RSG), will assist staff with. the Preliminary Plan presentation to the Planning Commission on October 28. SP/Johns6n responded to VC/Ruzicka that the Planning commissioner's will receive copies of the Preliminary Plan in advance -of the October 28 meeting.. C/McManus asked why the Planning Commission has not received the information earlier in the process. He asked staff to prepare a PERT chart form "Schedule of Actions" and include a critical path analysis'. He asked why only .part of the freeway is included in the map and if the - included portion is considered developed. He specifically cited the Diamond Ranch High School and Chino Hills Parkway -as areas omitted from the map. 3. information Packet for Colombia, Maryland. SP/Johnson referred to the information packet provided to the Commissioners in response to VC/Ruzicka's request. Chair/ Goldenberg indicated information regarding Colombia, Maryland is available through the Internet. C/Fong stated Durango, Colorado's commercial business has increased due to the community philosophy of allowing big name October 14, 1996 Page 4 Planning Comnd'ssit TZ4 J outlet stores in. the downtown facilities and in conformance PLANNING COMMISSION ITEMS: area through the use of existing with the City's design theme. C/Fong expressed his concern that he will not be able to reschedule his Tuesday business meetings in order to participate as a Planning Commissioner. C/Schad stated ed he attended a San Diego seminar regarding non-native vegetation damage to communities and cities. He indicated he will provide the Commissioner's with a copy of the information packet. VC/Ruzicka asked for verification of- a recent Daily Bulletin article which states CalPers is funding a 75 unit residential development in Diamc-d Bar. He reiterated that with respect to the Development Code design guidelines, daily decisions should be made on the basis of an overlying theme or philosophy of what is desired by the citizens of Diamond Bar. Chair/Goldenberg stated that he will work with C/Fong to insure his continued presence on the Planning Commission. He concurred that' the City of Diamond Bar should incorporate a prevailing theme for commercial and residential development. At 8:40 p.m., there being no further business to come before the Planning Commission, C/Schad moved, VC/Ruzicka seconded, to* adjourn the meeting to October 28, 1996. There being no objections, Chair/Goldenberg adjourned the meeting. Respectfully Submitted, Catherine Johnson Acting Community Development Director Attest: Michael Goldenberg Chairman DATE: . October 22, 1996 TO: Chairman and Planning Commissioners FROM: Felice Acosta, Rosenow Spevacek Group SUBJECT: Presentation on the Basics of Redevelopment in Preparation of Consideration of the Preliminary Plan and Proposed Boundaries for the Diamond Bar Economic Revitalization Area. Analysis On October 28, 1996, the Planning Commission will be asked to consider a resolution providing for approval of the proposed redevelopment project area boundaries and approval of the preliminary plan for the project. To assist the Commission in that action staff will provide a presentation to review the basics of redevelopment. Background Establishment of a Redevelopment Agency California Community Redevelopment Law (the CRL) which is part of the California Health and Safety Code is the governing statute that gives communities the right to establish redevelopment agencies and adopt. project areas. The CRL provides that legislative bodies of cities, counties, and certain special agencies may establish redevelopment agencies as separate political entities. The CRL allows legislative bodies (city councils, county board of supervisors and authorized joint powers authority) to establish themselves as the governing body of a redevelopment agency. (For example the Diamond Bar City Council also sits as the Diamond Bar Redevelopment Agency Board). The CRL also provides that the legislative body can choose to establish and appoint a separate board, to preside over the redevelopment agency. (Examples of this approach include the Cities of Los Angeles, Santa Ana, and Long Beach). Additionally, the legislative body may establish a community development commission in lieu of a redevelopment agency. A community development commission functions jointly as a redevelopment agency and housing commission. Purpose The purpose of redevelopment agency is to enable a community to address adverse and blighting conditions present within specifically identified areas. Additionally, an agency may pursue and Page 2 remedy economic distress of the cornmututy, provide for needed infrastructure, repair or upgrade deficient public improvements and facilities. Redevelopment agencies are also charged withi e duty of facilitating the improvement, development, and preservation of affordable low and moderate income housing within their communities. History Redevelopment in California was first conceived in the late 1940's as a inethod to participate in federal grant programs available for revitalizing downtown areas of cities. The state, federal, local government were concerned about the urban decay that had spread after the end of World War I1, In response to these concerns the federal government developed a number of programs such as urban renewal, niodel cities, and public housing construction as a way to address urban blight. California cities participated in these programs in a litrited manner and the state facilitated their participation by the enactment of the Cammuruty Redevelopment Act in 1945. The Community Redevelopment Act was later codified in 1951 and the authority to utilize property tax increment was added. in 1952 by the passage of a state constitutional amendment. Beginning in the 1960's tax increment financing became the principle source of financing for redevelopment activities in California. However, in the early 1960's redevelopment authority was not widely used on a statewide basis. Up until 1966 only 27 redevelopment project areas 1 ad been adopted. However, during the late 1960's and early 1970's numerous project areas were formed that were financed primarily through property tea: inc;reni,nt financing. By 1975, 100. agencies were r. -lying on tit< increment financing ar.d by 1976, 229 project areas in 111 cities had been adapted. Over the years, the number of cities and counties which adopted one or more project areas increased steadily. Major grown, in redevelopment within the state occurred atter the passage of Proposition 13. Because of lack of revenue, more and more- jurisdictions.turtied to redevelopment to fiind needed infrastructure and to pay for activities necessary. to address physical deterioration and economic: decline within their communities. .As of 1994, California had a total of 385 redevelopment agencies. The increasing number of redevelopment agencies and project areas over the years have prompted the conceals of the state legislature result ng in a nurnber of changes over time to the CLR. Most noteworthy of these changes ha�je included 1) the requirement to ri:place, low and moderate incrsme'housing units destroyed by an agency's action, 2) the mandatory inclusion of low and moderate income housing with a project area as a percentage of the total new housing units developed over the life of a redevelopment plan, and 3) the requirement that 20%, Of all the Property tax increment re,v,nue gen rated by a protect area be allocated and used for the devel�,pment pr. ir7trcaY�nezi4 of t't�rdahle lav and moderate income oustng. ange5ravo a so been made in the blight criteria set forth in the CRL to qualify an area for inclusion into a redevelopment project area and to the amount of vacant or non -urbanized land that can be include=d within a project area. Today ortly 200,E of any p.-oject area can be classified as nor,- Page 3 urbanized or vacant. The definition of blight has Leen rewarded and strengthened a number of times and the permissibly uses of tax increment fiends have been expanded and redefined. The most significant reform in CLR history came in 1993 with tl;e passage of the Assembly Bill 1290 (AB 1290). The goal of AB 1290 was to address and remedy all of the perceived abuses of redevelopment. Briefly, AB 1290 made the foilowing changes to the CRL. Rg § ' ,fit WkV 21 t , Amn minis L i't'lter + Strengthen the standards required to prove an area is plighted. Revise the number of years that a redevetopment plan can be active and the. length of time a project area can collect property tax increrent revenue. 0 Instituted m.ar,datory past through payments of property tax increment to the affected tasting agencies of a project area. o Eliminated the require:Hent to a hold f seal revi,:w hearing atrnons the affected taxing agencies during the plan adoption process. • Required the inclusion of a brief five year implementaCoa plan to an agency's report to the legislative body required in the plan adoption process. m Placed new limits.pn. the. amount of time a project area has to k5ue bonded debt. inRgdev�elo tttent Pa•o . = • Set new tirne limits (life of the redevelopment plan;, number of years to.cotlect tax increment, number o° years to issue bonded debt) on existing redevelopment plans and instituted new requirements to re -document blight for plan amendment3 to Extend such terms. • Required each redevelopment agency to adapt (by December of 13-194) a five year implemeNtation plan for each project area and required that each agency hold progress hearings on such plans mid -point it the five year term. a Rep,�:aled the authority of agencies to adopt powers that would allow them to receive saves tax increment revenue. a Imposed rcew requirements that an agency must make cen,aia fit;; ings beforw the disposition of land and thv financing of public improvement. ® Instituted penalties for agencies that do not expend their housing set aside fiends. How Does Redevelopmeot Function Redevelopment cif a specifically designated area within a. conirnwuty is accomplished through the. adoption and it nplementation of a redevelopment plan. The redevelopment pian is not a plan in the sense ofa land use plan or a specific plan, A recleveiopme nt plan is a ]egal document that sets firth an agency's goals and objectives and outlines an agency's powers to etTectuate redevelopment ,,,✓ithin the project area. It also e :urnerzre.s an agency's responsibilities for diamt»r p,irTA Page 4 affordable housing, and owner participation obligations. The redevelopment plan specifically requires an agency to comply with state lair regarding relocation assistance if displacenient occurs, sets forth how the projeot will. be financed and; identities the limits of the plan regarding the length of its term, the period to collect tax increment, the p.riod to issue debt. It also provides that the land uses permitted within the project area are those allowed by the City's General Plan. In concert with the CIL, the redev.dopment plan, grnrems what an agency can or cannot do to implement redevelopment in a project arca. What is Tag increment Financing Article 13 Section 19 of the California Constitution Nvas adopted as a cr nstitution amendment by the voters in 1952. It amended the State Constitution to aut'rcrize the use of property tax increment to pay for the indebtedness of a redeveiopment agency thereby providing the mechattistn to finance redevelopment in the State of California. Numerous states throughout the United States have redevelopment laws. However, only 15 •20 of tht►se states also have property tax increment as a methed''of financing. Property tax increnient Fnancing is based on the assumption that once a redevelopment project area is revitaiized, it will generate more property taxes based on an increased in assess valuation of project area p.op-�rties. Procedurally, when a redevelopment project area is adopted, a base year is established relNting to the equalize tax role. When a project area is adopted the assessed value of a!1 of the property within a project area i� totaled. This total assess value, (both secured and wrisecured values), then becomes the base year value of the project area. For example, if City A were to adopt a project area that was comprised of 30 acres of land wh=ase 1996/97 assess value totaled S 1,000,000 (one million dollars), the base year value for that'project area would be 51,0 000 (pane million dollars). If through the efforts of redevelopment the property within those 5' cs were significantly improved to the point that in tax year 2000/2001 the assess value of prop ,.ct arra eqo aled $10,000,000 (ten million dollars), the incremental urowth in assessed value of the p;oj?ct area would be 59,000,000 (nine niillion dollars). 'Tax increment ryvenue is then generated by the.applir,ation of the 1% ta*x charge to this incretrental increase in assessed value. f'or example in 1996!97 the project area's assess value of $1,000)000 (one nullion dollars) (at a 1$'0' propenzy tax rate) would generate propel-ty tax equal to $10,000 (ten thousand dollars). Befclre the project area was adopted that $10,000 (ten thousand dollars) would be divided arnong the various taxing agencies in an amount equal to their current share of the 1% tax rate. After the project is a:lopnt d, those sante 'taxing agencies continue to receive (collectively) the base ,$10,O(DO (Jeri thous:i,rd dollars) annually. However, any growth in tax revenue above the base year value v,cu!d g;) insteau to the redevelopment aeerq Therefore, in the year 2000/2001 our hypothetical a6erncy would receive prap:Jt; tax increment revenue, based on the $91'00133000 (n:t,e million do Jar) increase in assess value A one percent tax rate •gourd therefore ge:rterate a tela( of one hiutodred thousand dol!ars in prope-t-. tax revenue. Ten thousand dollars of this revei.ut,-Xcu!d go to the existing taring an the remainingninety thousand dollars would go to t' e reJev,iopn,ent agency for the pavnien; debt attributable to redevelopment activities. cudTtiler Srpt Page 5 Tax increment financing does not increase anyone's property taxes. A redevelopment agency has no power to tax. Tax increr;ient revenue is created by private individuals and parties expending funds and improving their properties. This occurs when an individual sells their property for more than it is currently valued (on the ta-x assessment role) or when a property is improved and reassessed as allowed under Proposition 13. This increase in amessed value produces tax increment revenue that then goes to the redevelopi-nent agency, - For example, if an individual owned a commercial building t;s Osed at $50,000 (fifty tliot.rsand dollars) and in 200012001 sild this property for $100,000 (ono hundred thousand dollars) it would generate an incremental increase in assessed value' of fifty thoilsand dollars. Applying the one percent tax rate to this increase would result in tate agency receiving $500 (five hundred dollars) in tax incremented revenue. As long as this property maintained its value the agency would receive this $500 (five hundred dollars) on an annually basis. Typical Powers attd Tools that Redevelopment flans Gibe to Redevelopment Agency's The CRL and a redevelopment Flan gives a redevelopment agency certain powers and tools to address the physical and ecovomic blight present with the project area. These tools and mechanisms include the ability to implement the general plait, specific plans, site and building redesigns, rehabilitation of existing structures and the redevelopment or development of deteriorated, vacant or underutilized properties. A redevetopmeot plan encourages cooperative etTorts between an agency and the private sector. I: provide; the authority to purchase property, to sell property, to finance public improve-int,-rnts, to make loans and grants, to take actions necessary to implement the goals and objectives ot'the redevelopment, plan, and when appropriate to assist in the clean up of contaniinated soil and Hzar lous mate; ik. A redeveloproent plan also delineates the obligation of an agency in regard to housing, protection as owner par ticipatibn rights, relocation of persons or parties being displaced, if any, acid providing for the development of replacement housing for any housing destroyed thr,,ugh an agency's action. Row is a Redevelopment Project Area Established Establishment of a redevelopment prosect area through adopti,ln of a redevelopment plan is a tinge consuming and lengthy process prescribed by the CLIV This process noromlly take between rine: to twelve months. Attached is an outline of the proposed adoption schedule for the Dia:rlond Bar Project Area, The Role, of the Planning Commissions In the Plan adoptions Process The role of the Planning Commission is prescribed by t�,e C IK The Planning Conuliission 13 involved in several different points during the plan adoption process. Briefly, this role is limited to 1) confirming the proposed project area boundaries and apprcval o` the preliminary plan, 2) upon transmittal of the di -O redevelopincnt plan by the :3Qer1cy, the COP, fission must Consider the r'3r11 Page 6 and make a determination of the plans conformance with the general plan and, 3) if at any point during the plan adoption process, the agency or city council makes changes to the proposed boundaries, those boundaries must be confirmed by the planning commission, prior to the final adoption of the ordinance approving the plan. In summary redevelopment has been used in California since the early 1950'9. almost all of the City of Diamond Bar's neighboring cities have adopted redevelopment project areas which currently compete with the city's commercial districts. Because of this, and based on the findings of feasibility study, the City Council and Redevelopment Agency have made a determination ' to move forward to consider the adoption of a redevelopment plan. The process requires spe,iding the n.ext nine months in further study and uevelopntent of the required documentation. To secure the 1996/97 base year the Agency and City Council must consider and adopt the redevelopmei-it plan no later than July of 1997. Later this evening the Planning Commission will review a stall' report and proposed resolution selecting Project Area Boundaries and approving the Preliminary Plan for the Diamond .Dar Economic Revitalization Area. It is hoped that preceding background information on redevelopment will assist the Planning Commission in their review and favorable consideration of this matter. dwiltleporyt 5sptst>raber, l$S6 Rsdavelapmvrt Agamey AAwl Skw"y Alva . . 60 - 90 days RosSsveF•ap�+aca; r6�o�y � PtamsJ� Coeeaas .Seker h—Marko. Woo- PrdZmh ry j,AuK nal ft maj, hi qVhftn/ranx Vujeraita Project Area Map, Preliminary Platt 90 - 120 days Redevoklpr'arast hgoacy Aigw,.r Pnri,sia:ry /tr{evn nnae(u4aj9 raxvaxatr. Tnmprsir vMawi nwy ttcr.+orr in alrcoed lurinK Preliminery Report, draft Redevelopatrant Plan, draft Metbod of"Relocation, draaft Oevnst Panicipaaon Rulon and &A Blit. I 90 - ISO days_ . By July 17, 1997 Leat Day to File Ordinarce wltb County Recorder First luerement received December of dlember%dproe AprS, 1%7 Draft Agency Report to CoumcH __...-.- MAY, 19" PUBLIC 6ILAAlING 30 days City Couueil & Aloney A�prwre JLe d *xuxww Aub v mbwxv to nerrr}la.P14 wafts AW Pfnd Agency Report to Ciry Council, final KIR, final Radovslopment Plena. final Mct^ta od of 7 to 14 days Relocation mad final OwTw Podeilaation Rules Clty Coe "if h7111 nY a;a7ck+eCmJ 7 to 14 days No Later Than Jue *Q 1?, ["I City Council Sten%5� Kali$ r fM'tIJISBK'e 30 days _ - By July 17,1997 Ordluaataee efHeefive By July 17, 1997 Leat Day to File Ordinarce wltb County Recorder First luerement received December of dlember%dproe '.:Y•a::is� auluA passes V am 9 CITY OF DIAMOND BAR INTEROFFICE MEMORANDUM To: Chairman and Planning Commissioners From: James DeStefano, Community Development Dirt Subject: DESIGNATION OF THE REDEVELOPMENT PROJECT AREA and APPROVAL OF THE.PRELIMINARY PLAN Date: October 21, 1996 The purpose of this -memorandum is to provide a brief overview of the subject including background, contents and role of the Planning -'Commission in the process leading to the approval of a project area and adoption of the Preliminary Plan. A more descriptive staff report on the subject is attached for your consideration. Background In accordance with provisions of the California Community Redevelopment Law (Health and Safety Code Section 33000 et.-seq.) the Redevelopment Agency Board has designated.a redevelopment survey area to study in order to.define a specific redevelopment project area. The Agency Board has directed the Planning Commission to designate a redevelopment project area within the redevelopment survey area and.to prepare and approve the Preliminary Plan, The Preliminary Plan will serve as the basis for the redevelopment of the project area. Contents of the Preliminary Plan The proposed Preliminary Plan has been prepared pursuant to the requirements of the California Health and Safety Code and includes the following: 1. A description of the boundaries of theprojectarea 2. A general statement of the land uses, layout of proposed streets, population densities, building intensities, and building standards proposed as the basis for redevelopment. 3. A demonstration of how the purposes of Redevelopment Law will be attained. 4. A statement of conformance with the General Plan. ,5. A general description of the impacts upon the res_i,Jc-:-;-.- of the project area and surrounding neighborhoods. Memorandum to the Planning Commission October 21, 1996 Page 2 Role of the Planning Commission - The role of the Planning Commission in the redeVelopment plan adoption process is prescribed by both redevelopment and land use law. Upon direction from the Redevelopment Agency the Commission is charged with confirming the boundaries of the project area and approval of the preliminary plan. As proposedi the project area incorporates all commercial and industrial property, most non- residential freeway oriented property, major parks and a limited amount of vacant land.* These areas are linked together by the existing street network to form a 900 acre project area. No mor: than 20 percent of the project area may be comprised of vacant land. At a later date the Commission will review the draft detailed redevelopment plan for conformity with the General Plan and comment on the environmental impact report. The land uses proposed within the project area are consistent with the Geriera'. Plan. The General Plan contains numerous goals, objectives and strategies outlining the need to revitalize existing commercial areas, increase sales tax revenue, improve the transportation system, and finance public improvements. The redevelopment ager- ­.. can serve to facilitate these efforts. Finally, the Commission will continue its role in implementation and act upon all development proposals within the project area requesting CUP's, development review, subdivision, etc. Conclusion On October 28, 1996 the -Planning Commission will be asked to review and adopt the Preliminary Plan. The Preliminary Plan establishes the precise boundaries of the proposed project area and serves as the foundation for the detailed Redevelopment Plan. Our redevelopment consultant, Rosenow Spevacek Group,.Inc.(RSG), will present the staff report. RSG prepared the blight assess.-,-,e:-�'_ report previously presented to the City which describes the physical and economic blighting conditions, as defined within redevelopment law, present within the study area. attachment jds PROPOSED PROJFCT ADOPTION SCHEDULE Tepternber, 1996 Redevelopment Agency ' 4&W.Army Arm 60 - 90 days November, 19% Redevelopment Agency & Planning Cmnmimian .Selrr, Mww%r slrs, WMW Yrcllmirmry l'tm. o d ltu mil lu meted —* -K—frr Project Area Map, Preliminary Plan 90 - 120 days 90 - ISO days 30 days 7 to 14 days 7 to td days .� ...-i'ebruety, 1997 Reddvelopment Agency A/Xu+„e l'relimrnury Nepurr ,cru! Jra/1 Jnavw,rwtr. T.wvrnit l'rrlimlrwry Rrpar! 1n o/1cchd rurinx ullencha Preliminary Report, drag Redmvelopment Plan, draft Method of Relocation, draft Uwner Participation Rules and draft EIR ApNO, 1999 Drag Agency Report to Council i - MAY, 199'1 - PUBLIC HEARING City Council & Ageuey Appnrvc /Lwf due vmrMr. Adopr OrdneanY ro tllob![lir !'rtr/acJ Ahho Final Agency Report to City Council, final FIR, !incl Redevclopment Plan, final Mcthod of Reineation and final Owner Participation Rules City Catlrull l lar nOAV n/nnb— • - No Later'I'hnn June 0, 1997 City Council � "—d >•eadlryr r�nrtMrmn<r 30 days _ July i1, tlrd ettive___—'� rilinmaee clTcctive By July 17, 1497 Last Day to File Ordinance with County Recorder Fret increment received December or roftow!ng ytsr biambar'Adp••oc i��l O Q ® � f� NIMMOFFIAIM i BLIGHT ASSESSMENT REPORT FOR THE CITY OF DIAMOND BAR REDEVELOPMENT STUDY AREA Prepared For: City of Diamond Bar 21660 East Copley Drive, Suite 100 Diamond Bar, California 91765-4177 Prepared By: Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 INTRODUCTION..................................................................................................................................1 EXECUTIVESUMMARY....................................................................................................................... 2 StudyArea Boundaries................................................................................................................ 2 Recommendations....................................................................................................................... 3 SUMMARY OF THE PHYSICAL AND ECONOMIC CONDITIONS EXISTING WITHINTHE STUDY AREA................................................................................................................. 4 Introduction................................................................................................................................ 4 PHYSICAL CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA ................................................................................................... 7 Buildings in Which it is Unsafe or Unhealthy for Persons to Live or Work ........................... 8 _ Factors that Prevent or Substantially Hinder the Economically Viable Use or Compatibility of Buildings or Lots...........................................................................................11 ECONOMIC CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA.................................................................................................16 AssessedProperty Values..........................................................................................................16 ImpairedInvestments...............................................................................................................17 HighBusiness Vacancies...........................................................................................................19 Crime......................................................................................................................................... 20 Inadequate Public Infrastructure/Improvements/Facilities.................................................. 20 Summary................................................................................................................................... 22 APPENDICES Appendix 1 - Information Sources Appendix 2 - Photographs of the Study Area Appendix 3 - Urbanization Analysis Appendix 4 - Field Survey Data Appendix 5 - Assessor Parcel Maps 10,11MMUGUMI'm MW The Rosenow Spevacek Group, Inc. ("RSG"), in conjunction with Economic Research Associates ("ERA") has been retained by the City of Diamond Bar (the "City") to identify the physical and economic blighting conditions present within the proposed Redevelopment Study Area (the "Study Area"), and to determine the feasibility of establishing a redevelopment project area. The first step in this process is the preparation of the Blight Assessment Report to determine if the proposed Study Area meets the requirements of a redevelopment project, as specified in the California Community Redevelopment Law ("CRL"). As a result of RSG's examination and identification of the physical and economic blighting conditions present within the Study Area to date, preliminary findings indicate that the entire Study Area may qualify as a potential redevelopment project based on the requirements set forth in the CRL. The properties contained within the Study Area appear to exhibit conditions of physical and economic blight which cannot be alleviated by private enterprise and/or government action, without .redevelopment. However, issues related to the inclusion of vacant properties and the urbanization analysis, included as Appendix 3, require further review and analysis by RSG staff in conjunction with designated legal counsel. City of Diamond Bar Rosenow Spevacek Group, Inc. 1 Draft Blight Assessment Report August 30, 1996 For nearly 30 years prior to its incorporation in 1989, the City of Diamond Bar developed under the jurisdiction of Los Angeles County. Historical patterns of development in the City during the period in which the area was under the County jurisdiction resulted in the creation of isolated residential areas, small commercial centers with limited access and freeway visibility, and the general fragmentation of uses throughout the City. _ Commercial properties within__ the boundaries of the City primarily consist of retail "strip" centers, which include supermarkets, banks, hardware store, fast food restaurants, retail and service oriented businesses and gas stations. According to local real estate brokers, the general economic downturn, which has affected the majority of the southern California region between 1990 and the present time, has had the most severe impact on these types of smaller businesses which occupy retail strip centers. This, coupled with a regional shift in consumer shopping preferences to "power" centers and big box discount retailers, has resulted in a high number of vacancies in the City's retail areas. Similarly, commercial office and, to a large extent, light industrial properties have become noncompetitive with cities such as Industry and Brea. This is as a result of the impact on the City of the historical planning practices of the County, the general downturn in the economy, and the use of financing tools, such as redevelopment, by surrounding cities. As lease revenues collected by commercial property owners have progressively diminished over this period, necessary maintenance of buildings has been deferred. Property owners with little or no cash flow are unable to fund improvements. Declining lease revenues have resulted in the declining profitability of commercial buildings, making the cost of routine maintenance prohibitive. These factors have resulted in the overall physical and economic decline of the primary commercial areas of the City. Without local assistance through the tools of redevelopment, the Study Area properties will continue to decline physically and ,in economic viability, causing a physical burden on the community and diminishing the economic viability of the area. The Study Area is generally bounded by Highland Valley Road to the north, the City limits to the south, the Diamond Bar/Industry City boundaries to the west, and Golden Springs Drive to the east. More specifically, the Study Area primarily includes the entire length of the 57 and 60 Freeways, and commercial corridors within the City boundaries. Major land uses in the Study Area consist of retail, commercial, and light industrial uses, with a few scattered single family residential uses located near commercial, office, and light industrial properties. There are also many vacant lots scattered throughout the Study Area which are located in areas that have been developed for urban uses. A map of the Study Area is attached as Exhibit 1 of this Report. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 2 Draft Blight Assessment Report EXECUTIVE SUM -MARY Based on the conditions of physical and economic blight present within the Study Area, as documented in this Report, it is RSG's preliminary determination that there is sufficient evidence to move forward with the completion of a comprehensive feasibility study, including preliminary tax increment projections and an analysis of the economic feasibility of a proposed redevelopment project, with the ultimate goal of establishing a redevelopment project consisting of some portion, if not all of, the Study Area. Please note that an analysis of urbanization requirements in relation to the vacant land within the Study Area boundaries (an important component of a feasibility study) has been completed and is attached as Appendix 3. The final components in the completion of the feasibility study will be the analysis of the economic feasibility of a proposed redevelopment project and the determination of recommended boundaries. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 3 Draft Blight Assessment Report SUMMARY OF THE PHYSICAL AND ECONOMIC CONDITIONS WITHIN THE STUDY AREA T, T-@ % • Section 33030 of the CRL states that "there exist in many communities blighted areas which constitute physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of these communities and of the state." This Report describes the existing physical and economic conditions present within the Study Area that create blight, the factors which cause a reduction of or a lack of proper utilization of the Study Area, why these blighting conditions create a burden on the community, and why private enterprise acting alone is unable to reverse or alleviate the blighting conditions found within the Study Area. Section 33030 of the CRL states a blighted area is one that contains both of the following: 1. "An area that is predominantly 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 are so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical or 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; b. The condition described in paragraph (4) of subdivision (a) of Section 33031." This Report describes the blighting conditions, set forth in Section 33031 of the CRL, found within the Study Area. Section 33031 describes both physical and economic conditions that cause blight. The "physical" conditions that cause blight, as detailed in subdivision (a) of Section 33031, are as follows: 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. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 4 Draft Blight Assessment Report SUMMARY OF THE PHYSICAL D ECONOMIC CONDITIONS EXISTING WITHIN THE STUDY AREA 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 Study Area. 4. The existence of subdivided lots of irregular form and shape and inadequate site -for proper usefulness and development that are in multiple ownership." The "economic" conditions that cause blight, as stated in subdivision (b) of Section 33031, are as follows: 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 an agency's 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." This analysis, and the assessment of the blighting conditions found within the Study Area, is based upon the following: 1. A parcel level windshield survey of the properties within the Study Area conducted during May and June of 1996 by RSG, redevelopment consultants to the City; 2. Information and data on crime rates provided by the Walnut Station of the Los Angeles County Sheriff's Department; and 3. Parcel ownership, sales, and assessed valuation data from Metroscan Information Service derived from the most recent assessment roll of the County of Los Angeles Assessor's Office. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 5 Draft Blight Assessment Report SUMMARY OF THE PHYSICAL. AND ECONOMIC CONDITIONS EXISTING WITHIN THE STUDY AREA Table A set forth below quantifies the number of parcels affected by the physical and economic blighting conditions set forth in subdivision (a) of Section 33031 of the CRL which is included as Table A. TABLE A DIAMOND BAR REDEVELOPMENT AGENCY PROPOSED REDEVELOPMENT STUDY AREA SUMMARY OF BLIGHTING CONDITIONS F � ,S i•.,. � +�t 5� .L �"'c"y�wF-'�??�*. 4 fir "Ffi�€�� '"" v�' b''�i' � .c' ;ZS;ti .. ,.•.: •. ...,,.v ... G. .+:.• ... ...�},.: t• _.�:,, r. f. 1 �.. ..r•r-.x-s... � :?c -mai ;a'�3. .�-.+•.L' t �;�. 7'. .e!f,F.l of Instancesof AffectedIn Total Blighting Condition Description Buildings Bldgs PHYSICAL BLIGHT Dilapidation & Deterioration Deferred Maintenance Moderate Rehabilitation Extensive Rehabiliation TOTAL Defective Design or Physical Construction Substandard Design of Buildings or Lots Lack of Parking Incompatible Adjacent Uses Physical Blight Subtotal: ECONOMIC BLIGHT Business Vacancies Excessive Vacant Lots 119 51.97% 15 6.55% 1 0.44% 135 58.95% 38 16.59% 53 23.14% 37 16.16% 30 13.10% 293 N/A 61 26.64% 50 13.85% 111 N/A TOTAL OCCURENCES OF BLIGHTING CONDITIONS: 404 N/A The opinions and, conclusions presented herein are based upon the examination by RSG of economic factors and property conditions within the Study Area to City-wide and regional trends, whenever possible. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 6 Draft Blight Assessment Report P HYSICAL CONDITIONS WHICH REDUCTION OR LACK OF PROPER UTILIZATION STUDY The following describes the physical condition of properties found within the Study Area using data and information derived from the survey conducted by RSC and data provided by the City staff and other sources. The RSG survey identified buildings that are considered potentially unsafe or unhealthy for individuals to occupy as work places and homes. These structures were singled out because of their serious deterioration or dilapidation, defective design', faulty construction, substandard design, or other factors that could make these structures potentially unsafe or unhealthy. The following criteria was utilized during the RSG survey in order to distinguish different structural conditions: 1. Sound: There are no noticeable deficiencies in the structural condition of the roof, walls, or foundation. The structure appears to have adequate plumbing and substandard electrical service in need of repair and is subject to a regular program of maintenance. The exterior walls and other surfaces are well painted and clean, and the windows and doors are intact. 2. Deferred Maintenance: The structure has been maintained adequately enough to eliminate any major structural defects. The exterior of the building shows signs of deferred maintenance such as peeling paint, dirty exterior walls and other surfaces, weathered and worn wood facades, and/or cracked plaster or foundations. 3. Moderate to Extensive Rehabilitation: There are obvious indications that proper maintenance to the structure is very infrequent. The building shows signs of structural deterioration such as a sagging roof or walls, or a crumbling foundation. Patchwork repairs may be apparent, and paint may be largely peeled or faded. The exterior walls and other surfaces are very dirty and show signs of neglect. 4. Dilapidated: The building appears structurally unsound, and maintenance is nonexistent. Its fitness for human habitation is highly questionable, and its state of deterioration and neglect is such that it is a candidate for demolition. 1. Defective Design: The design or layout of a structure that lacks necessary or desirable elements, or contains imperfections that seriously affect the efficiency and usefulness of the property. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 7 Draft Blight Assessment Report PHYSICAL CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA As mentioned previously, in May and June of 1996, a parcel level windshield survey of the properties within the Study Area was conducted by RSG staff. The purpose of this survey was to document the existing physical and economic conditions present within the Study Area. In addition to the physical survey, RSG researched available City records and other data sources to document the conditions and characteristics of the Study Area. The survey and research provides the basis for the following description of the blighting conditions which are present within the Study Area. 1. Buildings in Which it is Unsafe or Unhealthy for Persons to Live or Work a. Deterioration and Dilapidation As described previously, the City's historical development patterns while under County jurisdiction have created isolated residential areas, small commercial centers with limited access and freeway visibility, and the general fragmentation of uses throughout the City. The economic downturn caused by a recession in the southern California region coupled with a regional shift in consumer shopping preferences to "power" centers and big box discount retailers, has resulted in a high number of vacancies in the majority of the retail commercial areas of the City. Commercial office and light industrial properties have suffered a similar fate as a result of inadequate planning practices under the County , jurisdiction and competition from cities such as Industry and Brea. As lease revenues diminished in recent years, necessary maintenance of buildings has frequently been deferred as property owners are unable to fund improvements. Declining lease revenues have also resulted in the overall decline of the profitability of commercial buildings, making the cost of routine maintenance prohibitive. These factors have resulted in both the economic and physical decline of the primary commercial areas of the City. More specifically, the results of the field survey conducted in May 1996, indicate that overall approximately 59% of the structures in the Study Area are in need of some form of maintenance ranging from deferred maintenance to extensive rehabilitation. The nexus between high business vacancies and deterioration is evidenced by occupancy rates of retail centers such as Fairway Plaza and Golden Springs Plaza. Both Fairway Plaza, located on Diamond Bar Boulevard at the 57 Freeway, and Golden Springs Plaza, located near the corner of Lemon Avenue and Golden Springs Drive are directly adjacent to and visible from either the 57 or 60 Freeways. However, in the case of Fairway Plaza, approximately 50% of this retail center is vacant and exhibits conditions of deterioration, including minor nonstructural damage, chipped and peeling paint, exposed wiring, and obsolescence. Similarly, Golden Springs Plaza is approximately 53% vacant and suffers from deferred maintenance. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 8 Draft Bligbt Assessment Report I .0 PHYSICAL CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA In addition to the primary retail centers in the City, smaller retail strip centers and commercial office plazas scattered throughout the Study Area are in need of moderate to extensive rehabilitation. Along Brea Canyon Road, Diamond Bar Boulevard, and Golden Springs Drive, retail structures are in need of moderate to extensive repair and rehabilitation. As indicated from building conditions noted during the field survey, deficiencies include damaged exterior building material, deteriorated roofing material and eaves, and in some cases, broken windows. Perhaps the highest incidences of significant deterioration were noted near the corner of Golden Springs Drive and Brea Canyon Road. Existing land uses in this portion of the Study Area include commercial retail, multifamily residential units converted to offices, a single family residential unit, and auto related uses, all located along Via Sorella, with limited access opportunities as the street dead -ends at the 60 Freeway. The building conditions noted during the field survey include chipped and peeling paint, inadequate utilities, damaged exterior building material, deteriorated eaves, a broken window, and a sagging roof. Industrial structures along Brea Canyon Road and Washington Avenue exhibit the highest incidences of deterioration in the Study Area. Several of the industrial structures in the Study Area exhibit damaged exterior building material, deteriorated roofing and inadequate utilities, as well as the outdoor storage of materials and other. debris. As discussed on page -13 of. this Report, these conditions further contribute to the physical decline of these properties. Photographs 1 through 16 provide examples of deteriorated buildings in the Study Area. The process of deterioration can also be self-perpetuating. The presence of properties which exhibit signs of deterioration may deter owners of neighboring properties from improving or even maintaining their properties. It appears that any benefits that might accrue to their properties from improving them will be diminished or negated due to the condition of surrounding parcels. Then they are less likely to take on the financial burden to upgrade their properties. For instance, when deteriorating conditions are prevalent throughout an area it is often difficult for a properly maintained property to attract a buyer. This occurs because the area's overall deteriorated condition sends a message of owner apathy to potential investors and presents a risk in terms of possible decreases in property values if deteriorated conditions are permitted to persist, as the results of the above mentioned survey suggests. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 9 Draft Blight Assessment Report PHYSICAL CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA b. Lots/Buildings Suffering from Defective Design or Defective Physical Construction Buildings, structures, or their additions that are constructed with materials that do not meet current design or construction standards may be considered defective in design. Such buildings can present safety hazards, be functionally inefficient, or facilitate their own deterioration. Defects may exist from the moment a given building is completed; or, they may evolve as uses within the building or within the surrounding buildings change over time. Conditions of defective design or physical construction can be manifested in a number of ways. One example is where existing conditions do not meet modern construction standards established to ensure the health and safety of building occupants. Such defects may not technically be code violations (although most older buildings suffer from many of these too) but rather deficiencies resulting from evolutionary improvement in building code standards that have occurred since the building's construction. The results of the field survey indicate that approximately 17% of all structures in the Study Area exhibit one or more conditions of defective design including inadequate vehicular access, substandard building material(s), inadequate loading areas, and faulty additions. The largest concentration of buildings with conditions of defective design were observed in commercial/office retail structures near the corner of Pathfinder Road and Brea Canyon Road, on the east side of the Route 57 Freeway, as well as several shopping centers near the intersection of Diamond Bar Boulevard and Grand Avenue. Inadequate vehicular access problems plague the majority of the smaller retail centers in the Study Area. Typically, these centers provide few (very limited) access points for business patrons. In addition, lack of or inadequate loading areas (within retail properties) result in trucks loading and unloading in parking lots, often impeding access to businesses and restricting traffic flow. For example, access to the Vineyard Bank Plaza, which contains approximately 24 tenant spaces, is limited to one narrow driveway on Diamond Bar Boulevard, and one narrow driveway on Grand Avenue. Traffic counts obtained from the City indicate that this intersection experiences one of the highest volumes of traffic within the Study Area. Inadequate loading areas, coupled with limited access points of these retail centers, result in potentially hazardous situations, particularly at peak hours. The parking configuration in the Vineyard Bank Plaza consists of two-tiered lots which, as with the rest of the shopping center, have been built on a slope. Photographs 17 and 18 show the access problems which have resulted from the design problems of this center. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 10 Draft Blight Assessment Report 11 PHYSICAL CONDITIONS CAUSE i REDUCTION R LACK OF PROPER UTILIZATION OF THE STUDY AREA Commercial uses in other portions of the Study Area, such as properties located on Via Sorella (a dead-end street), also have limited access points. A prime example of design layout problems in this area is a converted apartment building which currently houses office uses, depicted in photograph 19. Not only is this property located on a dead end street, it is virtually invisible from the street level. It has only one access point (depicted in photograph 20) up a steep hill resulting in limited visibility to patrons traveling to and from the property. 2. Factors the Prevent or Substantially Hinder the Economically Viable' Use or Compatibility of Buildings or Lots Fifty-three, or 23%, of the buildings in the Study Area were noted as having physical factors inhibiting the economic viability of properties. Indicators of this condition that were frequently noted are substandard design, lack of parking, and incompatible adjacent uses. a. Substandard Design Substandard design includes architecture, site layout problems, and other deficiencies of building or properties that do not meet the contemporary requirements -of commercial or industrial uses. As shown on Table- A,. nearly 1 out of every 4 buildings and/or properties in the Study Area has one or more characteristics of substandard design. In order to analyze substandard design issues in the Study Area, historical development patterns in the City must be examined. The Diamond Bar area was developed over a 30 -year period while under the jurisdiction of Los Angeles County, prior to the City's incorporation in 1989. Although the City is commonly referred to as a "planned community", Diamond Bar developed as individual residential tracts of detached single family homes. A minimal amount of spot commercial and other nonresidential uses were also developed while the area was part of County unincorporated territory. Due to a lack of regulations, controls, and planning policies, development patterns under the County created isolated residential areas, and small commercial and retail centers with limited access. The issues of poor planning, uncontrolled development, and lack of regulatory controls were the primary factors which inspired the incorporation of the City. In 1989, however, the full effect of the recession of the early nineties had not been felt by many southern California communities. At this time, commercial development, primarily consisting of neighborhood retail centers and some office properties, continued to be built in close proximity to newly developed residential areas. However, with the initiation of the recession in 1991, it became increasingly difficult for the City to attract developers to the area. Contributing to the recessionary downturn felt in the development of the area were Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 11 Draft Blight Assessment Report PHYSICAL CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA low population densities and the isolation of the community. In addition, according to many local real estate brokers, impacts of the recession were most significant with regard to small businesses. Small businesses make up nearly all of the nonresidential uses in the City. As these businesses failed, vacancies increased in numbers to alarming heights. Additionally, there has been a regional shift in shopping trends and preferences as "power centers" and big box retailers have been -developed in several of the cities surrounding Diamond Bar. According to regional real estate brokers, the development of these power centers negatively impacted commercial uses in the City as residents were now leaving the City for increased shopping opportunities in communities such as Brea, Chino, and Montclair. Both the failure of small businesses and the development of more desirable shopping opportunities outside of the City has led to a very critical vacancy problem in the City. Property owners now collect lower amounts of lease revenues, which has resulted in declining profits for property owners, and has discouraged routine maintenance and/or upgrades to properties. The overall lack of contemporary upgrades and the relatively recent change in shopping preferences has resulted in the majority of the retail properties in the Study Area becoming obsolete. This perception that the City's commercial properties were obsolete are evidenced by statements to that effect made over the last two years- in - recent real estate trade or business.. journal. articles as well as statements made by representatives of Koll Development and CB Commercial. Obsolete properties are those that have outlived their usefulness -and are no longer economically viable. This condition often occurs as competing newer, more efficiently designed, buildings or developments become available in a market area. Obsolete buildings quickly lose their appeal as marketing conditions and consumer preferences change, or as factors important to the function for which the buildings were designed change, making the buildings no longer useful in terms of their original function or purpose. Both of these situations often result in vacancies. According to real estate professionals, there has been a market shift in the makeup of shopping centers. More specifically, the market place is moving towards the large scale, discount value oriented centers. Five years ago, neighborhoods centers or community centers with a market and/or drug store and smaller retailers were the more successful retailers. In an article published in the Orange County Business Journal on October 23, 1995, Sheri Cameron, Director of Research at CB Commercial, states that the increased emphasis on one-stop shopping opportunities in such retail power centers, made possible by super grocery stores and multidepartment stores has made the unanchored strip center virtually obsolete. Rosenoau Spevacek Group, Inc. City of Diamond Bar August 30, 1996 12 Draft Blight Assessment Report PHYSICAL CONDITIONS ♦ REDUCTION R LACK OF PROPER UTILIZATION OF THE STUDY AREA This condition is particularly apparent when comparing commercial centers in the Study Area to those outside of the City and surrounding areas, such as the new power center in the City of Chino. Centers such as this typically house anchored tenants such as Home Base, Mervyn's, and/or a discount value retailer in one location with convenient access and ample parking. In contrast, the commercial and retail centers within the Study Area are primarily smaller unanchored strip centers, constructed in the late 1980s. These strip commercial centers have had little or no improvements or upgrades done to the original structure. Nearly all of these locations lack desirable tenants, suitable access or freeway visibility. The obsolete nature of the strip retail centers and shopping centers has resulted in high vacancies, high turnovers, and profitability problems in the Study Area. One retail center in particular, located near the corner of North Diamond Boulevard and Highland Valley Road, has a significantly high occurrence of vacancies. Of the 20 tenant spaces located in this center, 14 are currently vacant. Additionally, the Diamond Creek Village Center and the Golden Springs Plaza are approximately 62% and 44% vacant, respectively. The obsolete nature of these retail centers has not only resulted in an overall rise in vacancies, but also has resulted in limited shopping opportunities for Diamond Bar residents. These limited opportunities have led to residents purchasing goods and services outside of the City, as - discussed on page 18 -of this Report, and has caused a significant retail sales leakage. problem for the City. Another frequently noted condition of substandard design documented during the field survey of blighting conditions conducted in May 1996 was outdoor storage. The storage of wood, toxic materials, auto parts, or other materials around buildings not only poses health and safety hazards, but diminishes property values and reduces the potential for a favorable economic return on investment. The presence of outdoor storage is also an indicator that the existing building stock provides inadequate space for modern* business activity. When outdoor storage areas are unscreened, as in the Study Area, it contributes to the declining appearance of the area. Photographs 23 through 32 show examples of outdoor storage and production. The results of the field survey also document conditions of inadequate loading space in the Study Area. Photographs 33 and 34 illustrates such a condition in a shopping center near the corner of Diamond Bar Boulevard and Grand Avenue. Here loading activities are taking place in the shopping center's parking lot, indicating that the existing site and facility have inadequate loading area. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 13 Draft Blight Assessment Report Ux NE MUD M0,4111114VACIN b. Incompatible Uses Section 33031(a)(3) ,of the CRL states that adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels, or other portions of the Study Area is a condition that causes blight. Of the 361 parcels in the Study Area, 30 properties , or 13%, were noted during the field survey as incompatible to adjoining or nearby uses. More specifically, those properties designated as incompatible uses were generally located within the area bounded by Lemon Avenue to the west, City limits to the north, Brea Canyon Road to the east, and the 60 Freeway to the south. During the field survey, it was noted that residential uses in the Study Area, all located adjacent to industrial or commercial uses, were in need of moderate to extensive rehabilitation and appear to be negatively impacted by these uses. Photograph 35 provides an example of a deteriorated residential use located directly adjacent to a generator used by a light industrial property on Washington Street. Industrial uses surrounding Walnut Elementary School has resulted in a number of incompatible use problems such as traffic, noise, and potential hazardous materials issues. Lycoming Street in particular experiences high volumes of traffic at approximately 3:00 in the afternoon. Traffic congestion is worsened by the fact that there is currently no traffic signal, but rather a stop sign, at'the intersection of Lemon Avenue and Lycoming Street. It is also important to note that the industrial structures along Lycoming Street have the highest incidences of business vacancies of any industrial areas in the Study Area. Of the 14 buildings located on Pinefalls and Penarth Avenues, 10 are at least 50% vacant, if not completely vacant. High volumes of traffic resulting from a lack of circulation improvements at nearby intersections, as well as other negative impacts from the mixture of industrial uses and the elementary school, appear to be a significant contributing factor to the already high business vacancy rates. A significant lack of parking has also negatively impacted the desirability of the industrial space. Additionally, the close proximity of the industrial properties to the elementary school may pose potential health and safety problems for students attending the Walnut Elementary School. C. Lack of Parking Other factors, similar to substandard design, can also provide or substantially hinder the economic viability of uses or capacity of buildings or lots as identified in Section 33031(a)(2) of the CRL. Other similar factors specific to the Study Area include inadequate parking. Properties that do not have adequate available Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 14 Draft Blight Assessment Report parking for patrons, employees, or residents, and/or do not provide satisfactory access for vehicles and pedestrians experience diminishing economic value. The field survey results indicate that overall approximately 16% of the properties in the Study Area do not have the adequate parking needed to effectively conduct business. However, this figure is based upon the field survey where only gross deficiencies in parking were noted, such as complete lack of street parking adjacent to a business, parked cars blocking driveway entrances, and double parked cars. I Inadequate parking is a significant factor inhibiting the economic viability of properties in the Study Area. Many of the light industrial and commercial uses located in the Study Area lack sufficient off street parking and, as a result, employees and patrons are forced to park along the streets, and in some cases residential streets, adjacent to these uses. As shown in photographs 36 and 37, the residential street adjacent to the commercial office structure on the corner of Fallow Field Drive and Brea Canyon Road is lined with cars as the parking lot for this structure only contain two visible visitor parking spaces. Another example of parking deficiencies is shown in photographs 38 and 39. The structures in the industrial park, located adjacent to.Lycoming Street, shown in this photographeach contain- 2 tenant spaces. However, it appears that there are only. 8 parking spaces for each structure, which translates into 4 parking spaces for each tenant space. Photographs 40 and 41 also depict additional parking deficiencies throughout the Study Area. The lack of parking not only reduces the economic value for the commercial or industrial user or the possible reuser of these properties, but also negatively impacts the surrounding residents through increased traffic, noise, and reduced parking. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 15 Draft Blight Assessment Report ECONOMIC • ,• A REDUCTION OF LACK OF PROPER UTILIZATION -OF THE STUDY AREA The CRL requires that for an area to qualify for inclusion in a redevelopment project area it must not only exhibit conditions of physical blight, but also must contain and suffer from economic blight. Economic blighting conditions are those enumerated on page 5 of this Report. The Study Area has been surveyed to identify economic blighting conditions. Further, information and data has been gathered from City, County, and private sources to document the deteriorating economic conditions of the Study Area. The following describes the economic blighting conditions which are present and which contribute to the lack of proper utilization of the properties within the Study Area. i . Assessed Property Values When assessed values are increasing at a comparable rate to surrounding areas, such as the City, it is often an indicator of a healthy local economy. Conversely, if assessed values are declining, especially at a rate greater than the remainder of the City, or the City as whole, the area's economy is likely to be in a state of decline. M order to examine the health of the real estate market in the- Study -Area, trends in secured assessed property values, which include land values and building improvements for fiscal years 1994-95 and 1995-96 were analyzed for the Study Area and compared to those for the City. Data obtained from the Los Angeles County Auditor -Controller's office indicates that from fiscal year 1994-95 to fiscal year 1995-96, secured assessed property values in the Study Area decreased by nearly 9%, from $458,782,101 in 1994-95 to $418,894,998 1995-96, compared to a 1% increase City-wide. This significant decrease in assessed property values in the Study Area compared to an increase in the City is an indicator that the area's economic condition is weak and investment in the area is impaired. When property values decline or remain constant over an extending period of time, such as during the period reported above, property owners have little incentive to reinvest in their property due to an uncertain return on their investment. Over an extended period of time, lack of investment, including maintenance, contributes to the decline of an area and eventual revenue loss to the City, particularly in commercial and industrial areas. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 16 Draft Blight Assessment Report ECONOMIC CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA 2. Impaired Investments a. Hazardous Materials Parcels within the Study Area use hazardous materials. Any parcel . that contains a hazardous materials user or contains an underground storage tank, whether in use or remaining on the property but no longer in use, presents the potential for hazardous waste contamination. The presence of hazardous material/waste negatively affects potential private investment in the area. This is the result of concerns over the liability surrounding hazardous materials and the difficulty in accurately assessing the extent of damage and the cost of remediation. These same concerns and the difficulty in securing financing may deter buyers and potential developers. The California State Environmental Protection Agency monitors and reports the location of sites in the State of California which contain contaminated or potentially contaminated hazardous,waste sites, leaking underground storage tanks, or sanitary landfills which have evidence of groundwater contamination. The lists of sites are designated by the State Water Resources Control Board, the Integrated Waste Management Board, and the Department of Toxic Substances Control. According to information obtained from the California State Environmental Protection Agency, 6 sites in the Study Area have been identified by the California State Water Resources Control Board as sites with leaking underground storage tanks. The largest concentration of these sites are located along Diamond Bar Boulevard with additional sites located along Brea Canyon Road. The businesses in the Study Area which have been designated by the California Environmental Protection Agency include gas stations and auto repair uses. Underground storage tanks, particularly as they become older, become subject to leakage and this leakage can result in soil and groundwater contamination. Before contaminated soil can be excavated, it must also be tested to ensure that excavation of the soil will not release hazardous vapors into the air in quantities that exceed federal and state standards. Another factor in hazardous soil contamination is the mobility of waste. If the waste is fluid, as in the case of substances stored in underground tanks, the movement of the substances can affect other properties and contaminate underground water. The high cost of remediation, particularly if the site is considered for a different land use (than its current one), makes the private development of these sites costly and problematic. In some cases, cleanup may require state and/or local toxic remediation funding. Rosen&w Spevacek Group, Inc. City of Diamond Bar August 30, 1996 17 Draft Bligbt Assessment Report ECONOMIC CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA b. Declining Retail Sales Tax Revenues Stagnation or decline in sales tax revenues is an important indicator of impaired investments. The majority of the commercial businesses in the City are located within the boundaries of the Study. Area. However, the majority of the businesses along the commercial corridors have not been successful in capturing business in proportion to the level of traffic flows as evidenced by the taxable retail sales information for the City reported by the California State Board of Equalization. Taxable retail sales per capita in the City in 1994 was $3,023, which is among the lowest in the San Gabriel Valley region. In contrast, the retail sales per capita in surrounding cities, such as Brea, Chino and West Covina were $16,646, $6,895, and $6,722, respectively, representing per capita taxable sales that are approximately 100% to 500% higher. Information contained in the Prospects for Economic Development in the City of Diamond Bar ("Study"), prepared by ERA also identifies significant retail leakage problems. The commercial market analysis included in these studies indicates that that many of the existing retail businesses in the City are performing below standard with regard to sales. The Study cites a number of well-developed retail centers in surrounding cities such as Industry, Brea, and Chino and the City's lack of larger _ commercial .uses -.other than neighborhood serving .b.usinesses for .this leakage . . problem. Finally, the results of the field survey, as well as the survey of the City's real estate brokers (described in detail in the next section), indicate that the large number of well developed "power centers" and discount oriented retailers located in surrounding cities (many within a fifteen minute drive from central Diamond Bar), have resulted in Diamond Bar becoming uncompetitive in the region. In addition, the large number of these centers has also contributed to the undesirability of the retail stock in the City, as the majority of the retail properties in the City lack freeway visibility, .which is often a required amenity for prospective business tenants. The overall lack of competitiveness of retail properties has directly resulted in the high number of business vacancies. As the number of businesses in the City declines, as small businesses fail or as successful businesses relocate to more successful retail centers outside the City, retail sales tax revenues decline significantly. The majority of the commercial and retail businesses located in the Study Area are small retailers such as fast food restaurants, offices, and other neighborhood serving commercial uses. These businesses are not typically high end or high sales retailers and are very vulnerable to fluctuations in the economy. Shopping centers in the Study Area, such as the Country Hills Town Center and Golden Springs Plaza currently have a significant amount of vacant commercial Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 18 Draft Blight Assessment Report b 6� space. This suggests that retail space located adjacent to the 60 Freeway or newly constructed retail space with ample parking within the Study Area is difficult to lease. 3. High Business Vacancies A vacancy survey was conducted in June, 1996 as part of the field survey to determine the vacant parcels, buildings, and tenant spaces within the Study Area. In addition to identifying vacancies during the field survey, the names and phone numbers of real estate brokers. representing the vacant buildings and/or tenant spaces were noted. These brokers were interviewed regarding the size of the vacant buildings or tenant spaces, as well as how long the property had been vacant. The results of the field survey, interviews with real estate brokers, and information obtained from ERA indicate that of the 229 buildings in the Study Area, a total of 61 buildings, or 27% of all buildings, as well as over 150 tenant spaces are partially or 100% vacant. Of these 61 buildings, 12 are commercial office, 17 are light industrial, and 32 are commercial retail. Photographs 45 through 60 depict vacancies throughout the Study Area. Photographs 58 and 59, in particular, show a retail commercial center on Golden Springs Road and Lemon Street. The lack of success of this center, and the continued vacancy is problematic considering the close proximity of this center to the 60 Freeway. According to a number of real estate brokers surveyed, the vacancy problem in the City as a whole stems from the regional transition to power centers, which is perceived to be the direction or evolution of commercial retail in the San Gabriel Valley as well as Southern California. As mentioned previously, due to the fact that there are a number of well developed retail centers within a fifteen minute drive of central Diamond Bar, the City has encountered great difficulty in attracting larger retail businesses. The composition and quality of the existing retail stock further exacerbates this problem as very few of the retail centers in the Study Area contain large enough structures to house a "big box" retailer or a value oriented discount retailers. These types of businesses, including Walmart, Circuit City, and Ikea, have had a well documented negative impact upon smaller businesses throughout the southern California region, as well as the entire country. One of the real estate brokers surveyed indicated that developments in such cities as Montclair, Brea, La Puente, and Chino, not only draw Diamond Bar residents out of the City to purchase goods and services, but also inhibits other national retailers to add additional locations in the area. Cities such as Industry, Walnut, Pomona, and Brea which have utilized the tools of redevelopment to draw development to their cities have been successful attracting larger retailers. Other factors leading to the location of national retailers in these cities include name recognition, close proximity to a regional mail, and *a large commercial and industrial base within these cities. The success of the Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 19 Draft Blight Assessment Report ECONOMIC CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA surrounding cities, combined with recent changes in shopping preferences, have resulted in the City being designated as an uncompetitive area for the attraction of retail users. 4. Crime In order to assess the impact of crime within the Study Area, information regarding the incidences of violent and other serious crimes reported by the Walnut Station of the Los Angeles County Sheriff's Department was analyzed. As shown on Table B, information obtained from the Sheriff's Department indicates that from 1994 to 1995, the occurrence of residential burglary, vehicle burglary, misdemeanor assaults, and petty theft increased by 10% to 23%. These types of crimes can be potential- safety threats, negatively impact existing businesses in the Study Area, and may discourage business investment and patronage in the area. Crime represents an additional cost in conducting business and owning property in and around the Study Area. These additional costs act as a deterrent to retaining existing businesses, as well as attracting new businesses to the Study Area. Crimes such as vehicle burglary not only affect business owners and tenants, but also discourage patronage of the Study Area. Businesses located in areas perceived to have a crime problem suffer from increased insurance and other costs as a result of stolen merchandise. Increases in crime rates may also increase insurance rates as well as negatively influence property values in an area by diminishing the area's desirability. Given the location options within the competitive market area and the potential .threat to personal safety and property, crime presents a threat to the economic viability of the Study Area. TABLE B DIAMOND BAR REDEVELOPMENT AGENCY Comparison of Reported Crimes 1994 to 1995 Property Crime I 1994 I 1995 I Difference I % Increase Residential Burglary . 232 269 37 16% Vehicle Burglary 273 299 26 10% Misdemeanor Assaults 66 81 15 23% Petty Theft 219 249 30 14% Also detrimental to property values is the presence of graffiti. Photographs 61 and 62 show examples of graffiti in the Project Area. Graffiti affects the condition of a property and adds an extra cost and concern to doing business in communities where it is prevalent. The City operates a graffiti program through the Department to combat graffiti; however, graffiti continues to persist in the Project Area and other areas Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 20 Draft Blight Assessment Report ECONOMIC CONDITIONSOR LACK OF PROPER UTILIZATION OF THE STUDY AREA of the City. According to the , resources utilized between 1995 through 1996 for the graffiti program include . The City currently allocates $ per year for graffiti abatement. Aside from the cost and effort of removal, graffiti can also be a detriment to investment and reinvestment, since it is often a sign of gang activity -- a hazard businesses and residents avoid whenever possible. 5. Inadequate Public Infrastructure/Improvements/Facilities Section 33030(c) of the CRL states that in addition to the blighting conditions defined in Section 33031, a blighted area may also be "characterized by the existence of inadequate public improvements, parking facilities, or utilities." The proposed Study Area contains several deficiencies in the public infrastructure system that contribute to the stagnation of the area's development and limit the use and reuse of existing commercial and industrial structures. The combination of the infrastructure deficiencies and physical and economic blighting characteristics exceed what can be expected to be remedied by the private sector acting alone. The following is a general discussion of the types of public improvement deficiencies that are present in the Study Area and how these conditions impact existing businesses and limit development potential. One of the assets of many of the properties in the Study Area are related to the close proximity to the. 57, and .60. Freeways. As previously noted, the potential for freeway visibility is one of the characteristics of the Study Area, which, if taken advantage of, will facilitate its redevelopment. However, traffic and circulation deficiencies will need to be addressed. Beyond the physical and economic conditions affecting properties in the Study Area, nearly all of the major intersections experience considerable congestion. These intersections include Diamond Bar Boulevard/Brea Canyon Road, Diamond Bar Boulevard/Pathfinder Road, Diamond Bar Boulevard/Grand Avenue (depicted in photograph 65), Pathfinder Road/southbound 57 Freeway ramps, Golden Springs Drive - Colima Road/Brea Canyon Road, Golden Springs Drive/Grand Avenue, Golden Springs Drive/Diamond Bar Boulevard, the west side of 57 north of Pathfinder/Sandstone Canyon, and Brea Canyon Road/westbound 60 Freeway ramps. A traffic study conducted by DKS and Associates states that the congestion in these areas is a result of commuters utilizing local streets as "short-cuts" to avoid freeway traffic. In addition, the Lycoming Street/Lemon Avenue intersection which experiences high volumes of traffic from the Walnut Elementary School and adjacent industrial properties, is not signalized, causing traffic congestion. Major arterials, such as Diamond Bar Boulevard, Grand Avenue, and Golden Springs Drive handle much of the traffic flow in and around the Study Area. These arterials are inadequate to serve the current flow of traffic with the commuter traffic traveling through the area to by-pass freeway congestion. Circulation problems jeopardize the economic success of this area. Individuals may seek alternative Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 21 Draft Blight Assessment Report ECONOMIC CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATION OF THE STUDY AREA shopping and business locations in the event that major arterials become unreasonably congested. Due to the fact that the majority of the properties in the Study Area are commercial and retail uses, these businesses are dependent on a pleasant and attractive environment to encourage business patronage. Existing landscaping, streetscaping, and public facilities (including parks) are in need of upgrading or expanding to provide a pedestrian -friendly environment that encourages business patronage and new private sector investment. Improvements such as (1) retaining walls, landscaping, street realignment, street reconfiguration; (2) handicap access improvements; and (3) landscaping and upgrading of community parks will enhance commercial and community areas to attract visitors to the Study Area. The Study Area experiences parking deficiencies due to a poor distribution of parking facilities and spaces, and the existence of properties with limited on -street parking. Parking enhancement and improvements would ensure sufficient and convenient parking. Parking needs to be available and easily accessible for vehicles and pedestrians to encourage increased economic activity in the Study Area. The inadequacy of these public improvements is a barrier to development in the Study -Area and discourages reinvestment in properties. No single property owner can be expected to finance these public improvements which extend beyond the boundaries of the individual properties, nor can one property owner or a small group of property owners be expected to finance. improvements that are the result of area -wide deficiencies. The proposed Study Area is characterized by both physical and economic blighting conditions. Many structures within the Study Area suffer from deterioration, defective design and substandard design. Properties in the Study Area suffer from declining property values and impaired investments, high vacancies, disuse because of inadequate sized lots for usefulness and development, a prevalence of depreciated values, a declining market, and overall economic maladjustment. All of these conditions may be made worse by increases in crimes against property which not only threaten the public safety and well being of residences and businesses, but discourages patronage in commercial areas of the City. The presence of these physical and economic blighting conditions cause a reduction of, or lack of, proper utilization of the Study Area to such an extent that it constitutes a serious physical and economic burden on the community which has not been and cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. It is essential Rosenow Spevacek Group, Inc. City of Diamond Bar August -30, 1996 22 Draft Blight Assessment Report ECONOMIC CONDITIONS WHICH CAUSE A REDUCTION OR LACK OF PROPER UTILIZATIONOF THE STUDY AREA that redevelopment tools and powers be available to address these problems or they will continue to worsen. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 23 Draft Blight Assessment Report ECONOMIC FEASIBILITY- AREA Successful implementation of a redevelopment program in the Study Area will require a significant amount of capital. Redevelopment is traditionally funded through tax increment financing. Redevelopment agencies do not have the authority to raise taxes or impose new assessments. Instead, tax increment financing allows for a redistribution of future property tax revenue to a redevelopment agency. Tax increment revenue is property tax revenue generated by increases in assessed values over an established base year value. When a redevelopment project area is established, the county auditor -controller sums up the existing value of all properties within the project area; this value is called the base year value. As subsequent year assessed values within the project area increase due to the reassessments provided for by Proposition 13 (property improvements and/or sales, and an up to 2% inflation adjustment), the resulting property tax revenue generated from this incremental increase in assessed value over the base year value is allocated to a redevelopment agency to fund redevelopment activities. The chart below graphically depicts how tax increment is generated. The underlying philosophy of tax increment financing is that without redevelopment, property tax revenues within a redevelopment project area would remain generally flat or even decline. However, when redevelopment powers are utilized in a proactive mode, such actions should result in an increase in property values. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 24 Draft Blight Assessment Report TAX INCREMENT FINANCING W Redevelopment JRed evelopment Project Period Q Project Area Created Completed Tax Base Value Set W Now Private ■ Increase In Assessed U) Inv■atmant ■ Valuation Accrues to W ■ OtherApencles U) Cl) Increase Assessed ■ Valuation for■ Redevalopment ■ e s ® o o � � � 0 � .e .■ sari Project 10 20 30 40 so YEARS The underlying philosophy of tax increment financing is that without redevelopment, property tax revenues within a redevelopment project area would remain generally flat or even decline. However, when redevelopment powers are utilized in a proactive mode, such actions should result in an increase in property values. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 24 Draft Blight Assessment Report ECONOMIC FEASIBILITY Tax Increment Revenue Distribution When a redevelopment program and project area are established, all of the property tax revenues generated from any future increase in the assessed value of properties is allocated to the redevelopment agency. Upon receipt, an agency is statutorily required to: 1) deposit 20% of the tax increment revenue into a low and moderate -income housing fund in order to improve and expand the community's supply of affordable housing, and 2) remit statutory payments to each of the taxing agencies who collect property taxes from the project area. With respect to the latter, a legally prescribed formula is established that calls for payments equal to 25% of the remaining 80% nonhousing tax increment revenue during the first ten years of a redevelopment project. Beginning in the 11 th year and again in the 31 st year of a redevelopment project, these amounts increase pursuant to a statutory formula. In general, over the 45 -year time period that a redevelopment agency may collect tax increment revenue, $0.31 of every $1.00 of tax increment revenue is allocated to affected taxing agencies; the redevelopment agency retains $0.20 for affordable housing programs and $0.49 for nonhousing programs. The chart below depicts the disposition of the three primary ways tax increment revenue is distributed. Disposition of Tax Increment Revenues Statutory Payments (to Affected Taxing Agency Agencies) Nonhousing 31% I Fund Revenue 49% gency Housing Fund Revenue i 20% I AB 1290, adopted in 1993, changed the CRL by imposing upon redevelopment project areas new limits and financing provisions, as well as requiring mandatory pass throughs of tax increment to affected taxing agencies. In general, these new provisions have had a somewhat negative impact on the financial feasibility of new redevelopment project areas. Two provisions that have the greatest financial impact on new project area formations are: (1) the 20 year time limit on incurring (nonhousing fund) debt, and (2) the provision for mandatory tax increment pass throughs. The mandatory pass through provision allocates approximately 31% of all tax increment generated from a project area over the 45 year term for collecting tax increment to its taxing agencies. These funds are passed through to the affected taxing agencies (excluding the City) on a formula basis specified in the CRL that increases the percentage allocated to the Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 25 Draft Blight Assessment Report ECONOMIC FEASIBILITYOF THE STUDYR taxing agencies over time. The second provision limiting the amount of time an agency has to incur debt severely limits the dollars available to invest in the redevelopment of a project area, particularly as it relates to bonding capacity. These limits can be extended through the amendment of a redevelopment plan. However, an amendment of this type would require the resubstantiation of blight. Potential Study Area Tax Increment Revenue Tax increment revenue projections were constructed to examine the financial feasibility of the Study Area. All projections assumed that the established base year would be 1996-97 (see Table 1). The estimated base year value utilized in the projections was arrived at by reducing the 1995-96 values commensurate with the reduction in values due to appeals settlements and then applying a 1.11% increase to the 1995-96 secured valuation of the Study Area. The 1.11 % is based upon correspondence between the State Board of Equalization and State-wide County Assessors establishing the 1.11% as the Proposition 13 inflation rate for the 1996-97 assessment roll. Unsecured assessed values were estimated at 10% of total secured value in the Study Area, with an annual increase of 0.25%. Table 1 also examines the significant decline in secured assessed valuation between 1994-95 and 1995-96. Table 2 presents an outline of potential new development which may occur due to redevelopment activities. The new development forecasts utilized for the projections are based on information provided by City staff regarding future development in the Study Area, and ERA projections of future development, as well as RSG's analysis of development potential. More specifically, the RSG and ERA analysis identified potential redevelopment sites, types of new development values to be added, and projected timing of the developments. Table 2 summarizes all development assumptions utilized. To analyze the revenue generating potential of each of the scenarios, RSG has constructed tax increment revenue projections (Tables 3 through 5). Tables 3 through 5 examine the use of various growth rates and the economic viability of the proposed scenarios. Table 3 assumes a base line growth rate of 2% with no new development. Table 4 utilizes a 2% annual growth rate in addition to adding the value of projected new development presented, in Table 2. As shown in this Table, new value added to the projections by the new development forecast substantially increases the amount of tax increment available over the term of the proposed redevelopment project. Overall, Table 4 shows total net tax increment revenues of $117 million over the life of the Project, while Table 3 shows $55 million over the same time period. Table 5 is the most aggressive in terms of projecting potential future revenue. Table 5 projections include both forecasted new development values, as well as a steady increase in the overall annual growth rate in assessed v -'nation. These assumptions result in projected net tax increment revenues of $248 million over a 45 year period. Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 26 Draft Blight Assessment Report ECONOMIC FEASIBILITYOF THE STUDY AREA In an attempt to identify the funds available for redevelopment implementation purposes, the projection tables (3 through 5) also identify the maximum bonding capacity. Maximum potential bonding capacity is based upon the net redevelopment funds available to the subject area in year 20, which is consistent with the CRL's 20 year limit to incur debt. The Low and Moderate Income Housing Fund's (the "Housing Fund") potential bonding capacity in year 20 has also been identified. The CRL allows an agency to incur debt.beyond the 20 year time limit to meet housing obligations. The 20 year limit on incurring debt is a critically important in determining the financial feasibility of a potential project area. Fora new project to generate sufficient revenue to address blight, .new development value must be added before the 20 year deadline to enable an agency to finance (bond) needed area improvements. Finally, Table 6 presents the bonding capacity of the Study Area based upon the three growth alternatives. City of Diamond Bar - Proposed Redevelopment Study Area Changes in Secured Assessed Values Istudy Area Estimated 1996-97 ur MMs :b'r�taxa,ik � a, .,ys�wsa.'i.ar.ai 1995-96 ' Land $177,258,128 -2% Improvements $213,802,275 -14% Other Secured $11,900,595 4% 1994-.95 Land $180,223,063 Improvements $249,338,894 Other Secured $11,467,395 N' •!.:.:. 1,i .,(-�%"{. h 4e1 M tee. V.y Ottil .�J, ay i. , > ' ,.: i.`+ .YxiY}� },ix,� a`'• ?�, `;'•,',R.,'.,'"�`•'?.: ,�.�••R, i '�.: s_in. !.. ;'"^-:.. �radtY,st%-.idyl• o:Fx -•Sty.�unet.r-roa.'''.:1tiC..s7„'•`'E? Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 27 Draft Blight Assessment Report ECONOMIC FEASIBILITY OF THE STUDY AREA Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 28 Draft Blight Assessment Report ECONOMIC FEASIBILITY �' � tA(it k.13 No Ucvc.lopi►u.nt' I Fczw ;,*pw.,,.r FwuL pora+%rCoX band,procred y (C---npC) t( ov4C#+W Fwd, pooe4u-rA%b band. proeeed* ar year 20 (tax, e x ornpC) Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 29 Draft Blight Assessment Report Secured Secured A Estimated Unsecured Adel el Total I Assessed incretnenW I Groat I Taz Housing ( Statutory IR Payments Nett edev. CuselatireNeIGrowth t5acal Year Rate Value Value @ .26% Value value Value lacr anent ltimd 94.71% tTal o the Agency 1995-96 402,960,998 _ Est. Sane 402,960,998 1996-97 M Hage 392,468,126 39,246,813 431,714,938 1 1997-98 2.00% 400,317,488 39,344,930 439,662,417 '21998-99 2.00% 408,323,838 39,443,292 447,767,130 16,052,192 160,522 32,104 30,405 98,013 98,013 31999.00 2.00% 416,490,314 39,641,900 456,032,215 24,317,277 243,173 48,635 46,060 148,478 246,491 4 2000-01 2.00% 424,820,121 39,640,755 464,460,876 32,745,938 327,459 65,492 6Z,025 199,943 446,433 S 2001 -OZ 2.00% 433,316,523 39,739,857 473,066,380 41,341,442 413,414 82,683 78,306 252,426 698,859 6 ZOOZ-03 2.00% 441,982,854 39,839,206 481,8ZZ,060 60,107,122 601,071 100,214 94,909 305,948 1,004,807 7 2003.04 2.00% 450,822,911 39,938,804 - 490,761,316 69,046,377 $90,464 118,093 111,841 360,530 1,365,337 82004-0 2.00% 459,838,961 40,038,651 499,877,612 68,162,674 681,627 136,325 129,109 416,193 1,781,529 9 2006-06 2.00% 469,035,740 40,188,748 509,174,488 77,459,SSO 774,596 154,919 146,718 472,958 2,254,488 10 2006-07 2.00% 478,416,489 40,239,095 618,666,650 86,940,612 869,406 173,881 164,676 530,848 2,785,336 .11 2007-08 2.00% 487,984,784 40,339,693 628,324,477 96,609,539 966,095 193,219 182,991 $89,886 3,375,222 A2 2008-09 2.00% 497,744,480 40,440,642 638,185,022 106,470,084 1,064,701 212,940 217,35? 634,404 4,009,626 13 2009-10 2.00% 607,699,369 40,541,643 548,241,012 116,526,075 1,165,261 233,052 252,404 679,805 4,689,431 14 2010-11 Z.00% 517,SS3,357 40,642,997 668,496,3S4 126,781,416 1,267,814 253,563 288,145 726,106 5,415,537 1S 2011-12 2.00% SZ8,210,424 40,744,60S 668,955,029 137,240,091 1,372,401 274,480 324,596 773,32S 6,188,862 16 ZOIZ-13 2.00% 638,774,632 40,846,466 579,621,099 147,906,161 1,479,062 295,812 361,769 821,480 7,010,342 17 2013-14 2.00% 649,550,125 40,948,583 690,498,707 IS8,783,769 1,587,838 317,568 399,680 870,590 7,880,932 18 2014-15 2.00% 660,541,127 41,050,954 601,692,081 169,877,143 1,698,771 339,754 438,342 920,675 8,801,607 19 2019-16 2.00% 671,751,950 41,183,581 612,90S,631 181,190,593 1,811,906 362,381 477,772 971,753 9,773,360 ZO 2016 t7 2.00% 883 186 989 41 286 46S G24,443,464 192,728,516 1 927 285 395,457 517 984 1,023,844 10,797,204 21 2017-18 2.00% 594,850,729 41,359,606 636,210,336 204,495,397 2,044,954 408,991 588,994 1,076,970 11,874,174 22 2018-19 2.00% 606,747,743 41,463,006 648,210,749 216,495,811 2,164,958 432,992- 600,817 1,131,149 13,005,323 •23 2019-20 2.00% 618,882,698 41,566,663 660,449,361 228,734,423 2,287,344 457,469 643,471 1,186,404 14,191,727 24 2020-21 2.00% 631,260,352 41,670,580 672,930,932 241,215,994 2,412,160 482,432 686,972 1,242,756 15,434,483 25 2021-22 2.00% 643,885,559 41,774,756 685,660,315 255,945,377 2,539,454 607,891 731,336 1,300,227 16,734,710 26 ZOZZ-23 2.00% 636,763,270 41,879,193 698,642,463 266,927,525 2,669,275 533,855 776,581 1,358,839 18,093,549 27 2023-24 2.00% 669,898,536 41,983,891 711,882,427 280,167,489 2,801,675 660,335 SZZ,725 1,418,615 19,512,163 28 2024-25 2.00% 683,Z96,506 42,088,851 725,385,357 - 293,670,419 2,936,704 587,341 869,786 1,479,578 20,991,741 29 2025-26 2.00% 696,962,437 42,194,073 739,156,509 307,441,571 3,074,416 614,883 917,781 1,541,752 22,533,493 30 2026-27 2.00% 710,901,68S 42 299 558 753,201,Z43 321,48G,30 3 Z14 863 642,973 966,729 1,605, 161 24,138,654 31 2027-28 2.00% 725,119,719 42,405,307 767,625,026 335,810,088 3,358,101 671,620 1,016,650 1,669,830 25,808,484 32 2028-29 2.00% 739,622,143 42,511,320 782,133,434 350,418,496 3,504,185 700,837 1,083,059 1,720,Z89 27,528,773 33 2029.30 2.00% 7S4,414,S56 42,617,698 797,032,164 365,317,216 3,653,172 730,634 1,150,787 1,771,751 29,300,524 34 2030.31 2.00% 769,502,847 42,724,142 812,226,989 380,512,051 3,805,121 761,024 1,219,861 1,824,235 31,124,759 3S 2031-32 2.00% 784,892,904 42,830,955 827,723,857 396,008,919 3,960,089 792,018 1,290,308 1,877,763 33,002,522 36 2032.33 Z.00% 800,690,762 42,938,030 843,528,792 411,813,854 4,118,139 823,628 1,562,156 1,932,355 34,934,877 37 2033-34 2.00% 816,602,577 43,045,375 859,647,952 427,933,014 4,279,330 855,866 1,435,432 1,988,032 36,922,909 38 2054-35 2.00% 832,934,629 43,152,989 876,087,617 444,37Z,679 4,443,727 888,745 1,S10,16S 2,044,816 38,967,725 39 2035-36 2.00% 549,593,321 43,260,871 892,SS4,192 461,139,254 4,611,393 922,279 1,586,385 2,102,729 41,070,454 40 2036-37 2.00% 866,585,188 43,369,023 909,954,211 478,239,273 4,782,393 956,479 t,664,120 2,161,795 43,232,249 41 2037-38 2.00% 883,916,891 43,477,446 927,394,337 495,679,399 4,956,794 991,359 1,743,401 2,222,034 45,454,283 42 2038.39 2.00% 901,595,229 43,586,140 945,181,369 513,466,431 5,134,664 1,026,933 1,824,259 2,ZS3,473 47,737,756 43 2039-40 2.00% 919,627,134 43,695,105 963,322,239 631,607,301 6,316,073 1,063,215 1,906,725 2,346,133 50,083,889 44 2040-41 2.00% 938,019,676 43,804,343 981,824,019 550,109,081 6,501,091 1,100,218 1,990,833 2,410,040 52,493,929 45 2041-42 Z.00% 956,780,070 43,913,854 1,000,693,923 I 568,978,986 1 516891790 1 1,137,958 1 2,076,619 1 2,475,218 54,969,147 CumulatireToW I 112,162,729 I 22,432,646 34,761,036 ( 64,969,147 I Net Present Value (7%) 18,700,646 I 31740,109 ( 51074,282 9,886,154 I Fczw ;,*pw.,,.r FwuL pora+%rCoX band,procred y (C---npC) t( ov4C#+W Fwd, pooe4u-rA%b band. proeeed* ar year 20 (tax, e x ornpC) Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 29 Draft Blight Assessment Report ECONOMIC FEASIBILITY OF THE STUDY AREA Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 30 Draft Blight Assessment Report Projt.eted Tan Increment Revenues • Second Secured Estimated Added Grow Statutory Net Cumlative Net Net I Growth I Aueued I Unsecured I 10 . pment I Incremental Tao[ I Housing I payments I Tar Iacremenl Fiscal Year Rate Volae Vahre (x3 25% Volae Volae Increment Fuad 94.71% Fund to the Agency 1995-96 402,960,998 Eat- Base 1996-97 Est. Bast 392,468,125 39,246,813 1 1997-98 2% 400,917,488 39,344,930 5,830,000 21998-99 2% 414,270,438 $9,443,292 27,822,810 49,821,602 498,216 99,643 94,468 304,204 304,204 3 1999-00 2% 450,935,113 39,641,900 26,046,300 84,808,475 848,084 169,617 160,638 617,829 822,034 4 2000-01 2% 486,521,041 39,640,765 26,620,725 120,067,58.4 1,200,676 240,135 227,423 733,118 1,555,151 6 2001-02 2% 622,384,601 39,739,857 30,634,400 161,043,820 1,610,438 322,088 305,037 983,313 2,538,464 6 2002-03 2% 564,079,279 39,839,206 18,016,806 190,220,353 1,902,204 380,441 360,301 1,161,462 3,699,926 7 2003-04 2% 693,738,006 39,938,804 22,016,805 223,978,677 2,239,787 447,957 424,244 1,967,586 5,067,512 8 2004-05 2% 628,069,907 40,038,651 10,641,805 247,035,426 2,470,354 494,071 467,916 1,608,467 6,575,879 9 2005-06 2% 651,485,946 40,138,748 10,641,805 270,661,561 2,706,516 641,103 612,459 1,651,954 8,227,832 10 2006-07 2% 675,470,406 40,239,095 6,641,805 290,636,268 2,906,463 581,073 550,412 1,773,978 10,001,810 11 2007-08 2% 695,652,354 40,439,693 304,277,108 3,042,771 608,554 676,439 1,857,878 11,859,688 12 2008-09 2% 709,665,401 40,440,542 318,291,005 3,182,910 636,582 6Z5,180 1,921,148 13,780,836 33 Z009-10 2% 723,766,709 40,541,643 332,583,414 3,325,834 665,167 674,992 1,985,675 15,766,511 14 Z010-11 2% 738,231,843 40,642,997 347,159,902 3,471,599 694,320 725,794 2,051,485 17,817,996 I6 Z011-12 2% 762,996,480 40,744,605 362,026,147 3,620,261 724,062 777,606 2,118,604 19,936;600 16 2012-13 2% 768,056,409 40,846,466 577,187,938 3,771,879 764,376 830,447 2,187,066 22,123,656 172013-14 2% 783,417,537 40,948,583 392,651,182 3,926,612 786,302 884,440 2,256,870 24,380,526 192014-16 2% 799,086,888 41,050,964 408,421,904 4,084,219 816,844 939,304 2,428,071 26,708,597 192016-16 2% 816,067,606 41,153,681 424,606,249 4,246,062 849,012 995,361 2,400,689 29,109,286 20 2016-17 2% 831,468,968 41,26G,40 440,910,486 4,409,105 881,821 1,052,533 2,474,751 31,584,037 21 2017-18 2% 847,996,337 41,469,606 457,641,006 4,576,410 915,282 1,110,842 2,650,286 34,134,324 22 2018-19 2% 864,956,264 41,463,006 474,704,332 4,747,043 949,409 1,170,311 2,627,324 36,761,648 23 201.9-20 2% 882,255,389 41,666,663 492,107,114 4,921,071 984,214 1,230,963 2,705,894 39,467,542 24 2020-21 2% 899,900,497 41,670,680 609,856,139 6,098,561 1,019,712 1,292,822 2,786,028 42,253,569 25 2021-22 Z% 917,898,507 41,774,756 527,958,525 6279,583 1,055,917 1,455,911 2867,755 45,121,325 26 2022 -ZS 2% 936,256,477 41,879,193 546,420,732 5,464,207 1,092,841 1,420,256 2,951,110 48,072,434 27 2023-24 2% 954,981,607 41,983,891 665,250,560 5,652,506 1,130,501 1,485,882 3,036,123 51,108,557 28 2024-25 2% 974,081,239 42,088,851 684,455,152 6,844,552 1,168,910 1,552813 3,122,SZ8 54,231,385 Z9 ZOZ5-26 2% 993,562,864 42,194,073 604,041,999 6,040,420 1,208,084 1,621,077 3,211,259 57,442,644 SO 2026-27 2% 1,013,434,121 42 99 558 624,018,741 6,240,187 1,248,037 1,690,700 3,301,450 1 60,744,093 31 2027-28 Z% 1,033,702,803 42,405,307 644,493,172 6,443,932 1,288,786 1,761,709 3,393,436 64,137,530 32 2028-29 2% 1,054,476,859 42,511,420 665,173,242 6,651,732 1,430,346 1,856,173 3,465,213 67,602,743 33 2029-30 2% 1,075,464,497 42,617,598 686,367,057 6,863,671 1,472,734 1,952,518 3,538,418 71,141,161 34 2030-31 2% 1,096,973,684 42,724,142 707,982,889 7,079,829 1,415,966 2,050,78Z 3,613,082 74,754,243 35 2031-32 2% 1,118,913,158 42,830,953 730,029,173 7,400,292 1,460,058 2,151,002 3,689,232 78,443,474 36 2032-33 2% 1,141,291,421 42,938,030 752,514,514 7,525,145 1,505,029 2,253,218 3,766,898 82,210,372 37 2033-34 2% 1,164,117,250 43,045,376 775,447,6•S7 7,754,477 1,550,895 2,557,470 3,846,11Z 86,056,484 38 2034-35 2% 1,187,499,595 43,152,989 798,837,646 7,988,476 1,597,676 2,463,798 3,926,903 89,983,387 39 2035-36 Z% 1,211,147,587 43,260,871 822,693,520 8,226,935 1,646,387 2,572,245 4,009,303 93,992,690 40 2036-37 Z% 1,235,370,538 43,369,023 847,024,624 8,470,246 1,694,049 2,682,852 4,093,445 98,086,035 41 2037-38 2% 1,260,077,949 43,477,446 871,840,457 8,718,405 1,743,681 2,795,662 4,179,062 102,265,0971 42 2038-39 2% 3,285,279,508 43,686,140 897,150,710 8,971,507 1,794,301 2,910,720 4,266,486 106,531,582 43 2039-40 2% 1,410,985,098 43,695,105 922,965,ZGS 9,229,653 1,845,931 3,028,070 4,355,652 110,887,233 44 Z040-41 2% 1,437,204,800 43,804,443 949,294,205 9,492,942 1,898,588 3,147,759 4,446,594 115,333,829 45 2041-4Z 2% 1,363,948,896 43,913,854 976,147,812 9,761,478 1,95Z,296 3,269,833 4,639,449 119,873,178 183,913,160 emulative Total 1227,805,951 ( 451560,790 62,369,983 119,873,178 I Net Present Value (7%) I 44,973,423 8,994,685 I 10,697,128 25,281,610 I �,, v ,,,.,moi tPaLboytd�ng ca cushy ofs Arew (125% caveres.:e 30vr bonci.��ZX prnceeeih equaL95X o�prinui aL) RedeveZopment�'t,t..,d.poi'entGaLbov►dLproceedr(ta,X,rxe+w '. jjOV ,; t Foci, poomtta.L bond, proceed& at yew' 20 (taw e, Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 30 Draft Blight Assessment Report ECONOMIC FEASIBILITYOF THE STUDY:. 'l Al;ft S 10 Yell t)cv4 tptttc nC Wtlh Addu1 C.u�wih [n U<tIu ]tion f , ?1a4cin�.w..* �otentLaLoon'1'n�# ca�cu+Ly o{SP&& Area,(125% coy30yr. ba"AP 7x prioceedrutuaZ95% of pr�n�aL) Red ,va,Op►n.ent Fund. potetlrt, b bond,proce ,d* Cttz4v o e"t-) -C#v year 20 itoc4 � Fwnd. potewtr bond, proceed* ar y"w 20 (tuav exe t) Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 31 Draft Blight Assessment Report Secured Estimated Added remental IncSecured Grow Statutory Net CumbtiveNet l GrowthAssessed Un3ecued Value DevelopmentTax Housing I Payments I Redevelopment Ito Ta: Increment L-= Year 25% Vlu Value Increment Fand 94.71% Fund the Agency 1995-96 402,960,998 1996-97 Est. Ban 392,468,125 39,246,813 1 1997-98 2% 400,317,488 39,344,930 6,SSU,000 2 1998-99 2% 414,270,438 39,443,292 27,822,810 49,821,602 498,216 99,643-. - 94,368- --. ----- 304,204 --304,204 31999-00 2% 460,936,113 39,641,900 26,046,300 84,808,376 848,084 169,617 160,638 617,829 822,034 42000-01 3% 491,290,855 39,640,766 26,620,725 124,837,397 1,248,374 249,678 236,458 762,241 1,584,275 62001-02 3% 532,418,927 39,739,857 80,634,300 171,078,146 1,710,781 342,166 324,044 1,044,682 2,628,857 6 2002-08 3% 679,944,824 39,839,206 18,016,805 206,085,898 2,060,859 412,172 $90,353 1,258,336 3,887,191 7 2003-04 3% 615,900,478 $9,938,804 22,016,805 246,141,160 2,461,411 492,282 466,222 1,602,907 5,390,098 8 2004-05 3% 657,054,802 40,038,651 10,641,805 276,020,320 2,760,203 552,041 622,817 1,685,345 7,075,443 9 2005-06 4% 694,404,471 40,138,748 10,641,805 313,470,086 3,134,701 626,940 593,752 1,914,009 8,989,452 10 2006-07 4% 753,248,127 40,239,095 6,641,805 348,414,089 3,484,141 696,828 659,940 2,127,373 11,116,825 112007-08 4% 769,485,529 40,339,693 378,110,284 3,781,103 756,221 716,189 2,308,694 13,425,518 122008-09 4% 800,264,950 40,440,542 408,990,564 4,089,906 817,981 823,812 2,448,112 15,873,631 132009-10 4% 832,275,548 40,541,643 441,102,264 4,411,023 882,206 936,728 2,593,090 18,466,721 14 2010-11 4% 865,566,570 40,642,997 474,494,630 4,744,946 948,989 1,052,106 2,743,861 21,210,572 15 2011-12 4% 900,189,233 40,744,605 609,218,900 5,092,189 1,018,438 1,173,127 2,900,624 24,111,196 16 2012-13 4% 936,196,802 40,846,466 645,328,331 5,453,283 1,090,657 1,298,975 3,063,651 27,174,847 172013-14 4% 973,644,674 40,948,583 582,878,319 5,828,785 1,166,767 1,429,844 3,233,182 30,408,029 18 2014-15 4% 1,012,590,461 41,050,954 621,926,478 6,219,265 1,243,853 1,665,935 3,409,477 33,817,506 192015-16 6% 1,063,219,985 41,163,681 672,658,628 6,726,586 1,345,317 1,742,746 3,638,523 37,456,029 20 2016-17 6% 1,116,380,984 41,256,465 725,922,511 7,259,225 1,451,845 1,928,381 3,878,999 41,335,028 212017-18 6% 1,172,200,033 41,359,606 781,844,702 7,818,447 1,563,689 2,123,280 4,131,477 45,466„506 22 2018-19 6% 1,230,810,036 41,463,006 840,558,102 8,400,581 1,681,116 2,327,908 4,396,657 49,863,063 232019-20 6% 1,292,360,536 41,666,663 902,202,261 9,022,023 1,804,405 2,642,760 4,674,868 54,537,931 24 2020-21 6% 1,356,968,063 41,670,680 966,923,705 9,669,237 1,933,847 2,768,316 4,967,073 59,505,004 25 2021-22 5% 1,424,816,466 41,774,766 1,034,876,284 10,348,763 2,069,753 3,005,144 8,273,866 64,778,871 26 2022-23 6% 1,496,057,290 41,879,193 1,106,221,645 11,062,215 2,212,443 3,253,796 6,595,976 70,374,847 27 2023-24 5% 1,570,860,154 41,983,891 1,181,129,107 11,811,291 2,362,258 3,514,863 5,934,170 76,309,017 28 2024-25 5% 1,649,403,162 42,088,851 1,259,777,075 12,597,771 2,519,554 3,788,966 6,289,250 82,598,267 29 2025-26 5% 1,731,873,320 42,194,075 1,842,352,455 13,423,525 2,684,705 4,076,757 6,662,062 89,260,329 30 2026-27 5% 1,818,466,986 42,299,558 1,429,051,606 14,290,516 2,858,103 4,378,921 7,053,492 96,313,821 312027-28 6% 1,909,390,335 42,405,307 1,520,080,704 15,200,807 5,040,161 4,696,175 7,464,471 103,778,292 32 2028-29 5% 2,004,859,852 42,511,320 1,615,656,234 16,156,562 3,231,312 5,130,652 7,794,598 111,572,891 33 2029-30 5% 2,105,102,844 42,617,598 1,716,005,505 17,160,055 3,432,011 6,586,830 8,141,215 119,714,105 34 2030-31 5% 2,210,357,987 42,724,142 1,821,367,191 18,213,672 3,642,734 6,065,793 8,505,144 128,219,249 35 2031-32 5% 2,320,875,886 42,830,953 1,931,991,901 19,319,919 3,863,984 6,568,683 8,887,253 137,106,502 36 2032-33 6% 2,436,919,680 42,938,030 2,048,142,773 20,481,428 4,096,286 7,096,693 9,288,449 146,394,951 37 2033-34 5% 2,658,765,664 43,045,375 2,170,096,102 21,700,961 4,340,192 7,651,081 9,709,688 156,104,639 38 2034-35 5% 2,686,703,948 43,152,989 2,298,141,998 22,981,420 4,596,284 8,233,165 10,151,971 166,256,609 39 2035-36 6% 2,821,039,145 43,260,871 2,432,585,078 24,325,851 4,865,170 8,844,330 10,616,350 176,872,960 40 2036-37 6% 2,962,091,102 43,369,023 2,573,745,188 25,737,452 5,147,490 9,486,030 11,103,931 187,976,891 41 2037-38 5% 3,110,195,657 43,477,446 2,721,958,165 27,219,582 5,443,916 10,159,792 11,615,873 199,592,764 42 2038-S9 6% 3,265,705,440 43,586,140 2,877,576,642 28,775,766 6,765,153 10,867,219 12,153,395 211,746,159 43 2039-40 6% 3,428,990,712 43,695,105 3,040,970,879 30,409,709 6,081,942 11,609,993 12,717,774 224,463,933 44 2040-41 5% 3,600,440,248 43,804,343 3,212,629,653 32,125,297 6,425,059 12,389,882 13,310,355 237,774,288 45 2041-42 6% 3,780,462,260 43,913,854 3,392,661,176 33,926,612 6,785,322 13,208,743 13,932,547 251,706,835 I183,913,160 c.,.UfircT f.1 I 533,997,540 I 106,799,508 1 175,491,197 1 251,706,835 1 Net Present Value (7%) I 80,160,071 I 16,032,014 22,695,382 I 41,432,675 i I ?1a4cin�.w..* �otentLaLoon'1'n�# ca�cu+Ly o{SP&& Area,(125% coy30yr. ba"AP 7x prioceedrutuaZ95% of pr�n�aL) Red ,va,Op►n.ent Fund. potetlrt, b bond,proce ,d* Cttz4v o e"t-) -C#v year 20 itoc4 � Fwnd. potewtr bond, proceed* ar y"w 20 (tuav exe t) Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 31 Draft Blight Assessment Report ECONOMIC FEASIBILITY OF THE STUDY AREA Projected Bonding Potential by Growth Rate Alternatives (Based Upon Tables 3 through 5) 2% Annual Growth Rate I 2% Annual Growth Rate I Increasing Annual Growth Rates No New Development With New Development With New Development $9,656,750 2% Annual Growth Rate No New Development $23,336,750 2% Annual Growth Rate With New Development $3,633,750 I $8,317,250 I $36,584,500 Increasing Annual Growth Rates With New Development $13,694,250 Rosenow Spevacek Group, Inc. City of Diamond Bar August 30, 1996 32 Draft Blight Assessment Report EMIR Information Sources APPENDIX I - Information Sources 1. Field survey of existing conditions, May and June 1996. 2. Los Angeles County Sheriff's Department, Walnut Station, June 1996. 3. TransAmerica Information Management, MetroScan Service, 1996. 4. CB Commercial, Seeley and Company, City Investment, and Pacific Realty, June 1996. 5. "Prospects for Economic Development in the City of Diamond Bar, California," prepared by Economics Research and Associates, June 1996. 6. City of Diamond Bar, 1996. 7. California State Environmental Protection Agency, 1996. 8. Orange County Business Journal, October 23, 1995. Rosenow Spevacek Group, Inc. City of Diamond Bar July, 1996 Appendix 1-1 Blight Assessment Report APPENDIX 2 Photographs of the Study Area PHYSICAL B "7- Ap APPENDIX .APN: 8706-002-021 4. APN: 8706-001-004 Rosenow Spevacek Group, Inc. City of Diamond Bar July, 1996 Appendix 2-2 Blight Assessment Report .......... KTe fe- ;Ax ov: APPENDIX 2 - Photographs of the Study Area 9. APN: 8285-029-001 10. APN: 8706-001-015 Rosenow Spevacek Group, Inc. City of Diamond Bar July, 1996 Appendix 2-5 Blight Assessment Report in a +Cs.�y.•>� .�f+.� A r j•• Sn. F 't• r c > r � t"4 t s,�rr .......... ` Jv r i .J� R` PA.• > Iva �•�•�t`-- f est i. ' � 1 - r - (�� y �Y r , Y YtC, t �; >• �.., .a+y +"3,#.,K :.�., i. I ... 4 - { - r .• rti ; r r•. . a ..w '7I7 4 ,.3 �.�, c..•- - '. �- ..y-•Rt G` -: u.. •- ,. .'.�, 'Pj�Y'7z Y".� s''y r�c� t r .� _rte.-..• •.. -� J r 7 "M• �?e.�w�. ' y�aty: - � ..�y, ��vi ' , f• 1L f,;oap rt°' �.+r -` ..-. Y: .-."t�w. �-`Y .S •`�••P`! `Srii7°!" .. .... ..,,. .. r, � ��y T,t?S�t, 'u �_ "�*�` ..�Y'"`i�"N`i�" _.._- ,C4�:1••1i . • � � 1 11 • , 1 •Ki t� 1 ;. • t M •f >r l .T. 1 i {: 3'•Yr:-'� r fit' i k„'�trr f 7 � k,,�.r'�"',� "'�'-"trt+d �r "tc,k' �4� • ,tT.'. �, . �'^tel •ltY.ratY' v..ati Si jjE}. tJ r 4s �r V _ •,i tir fit. 4 t /�•• �.4 �, r Y �+i' fir � � .i..r >? i �.. � ` Kt•, t � ( .; D fi`iyfx y�.'l�, > {•� +res � � .Idd�-''.1�.'" , � L �-r.• . Y -i �c �` ' i+ x '�$'p ��'b ;� r ,' r; '" ° r � a ,�"�,,. r' .. aM� � a;;a"'+•"� �.J1,�•�e: � y x d?+'. F�' .i!i •r Yt''sF C,hi r �i-yN Ms'y�7�!'-r?c.Z7�v Y APPENDIX 2 - Photographs of the- Study Area M 21. APN: 8763-004-003 22. APN: 8763-004-003 Rosenow Spevacek Group, Inc. City of Diamond Bar July, 1996 Appendix 2-11 Blight Assessment Report . �, �:,. ;� :1 " '� �j � � , t 'Y � rt �.3 {... � w vel. rt+ <] LK �� � �� }y � x �, ... ., j .,, M .L r Y \Y S ri ;:i fl F' � S. �J� ..� � � ��r�:. _ ���-•, Photographsof the Study Area INCOMPATIBLE 35. APN: 8719-010-007 Rosenow Spevacek Group, Inc. City of Diamond Bar July, 1996 Appendix 2-18 Blight Assessment Report 7� i a Jyt f w•. llf� t 4a. Ol M 1' .17 i�1 .1 y• TIP '•. S'r`_PT•' : � _�_^Ga"' iun�l:i��. ..KI''v .:: �'" 7�r _ a . ,. EAS APPENDIX 2 - Photographs of the Study Area 44. APN: 8717-008-019 Rosenow Spevacek Group, Inc. City of Diamond Bar T„ tv_ 1996 Appendix 2-23 Blight Assessment Report • t , Photographs of Study • a CLm OF IW 'rte! r...•�'•���•.'•'�^k'vJ..-e•%�•�'�.° 47. APN: 8717-008-032 48. APN: 8717-008-032 Rosenow Spevacek Group, Inc. City of Diamond Bar Tyly_ 1996 Appendix 2-25 Blight Assessment Report APPENDIX 2 - Photographs of the Study Area INADEQUATE PUBLIC IMPROVEMENTS 63. APN: 8702-001-191 Rosenow Spevacek Group, Inc. City of Diamond Bar ruly_ 1996 Appendix 2-33 Blight Assessment Report APPENDIX 3 Urbanization Analysis APPENDIX 3 - Urbanization Analysis Pursuant to Section 33320.1 of the CRL, redevelopment projects must be "predominantly urbanized," which means not less than 80% of the area included within the redevelopment project: 1) has been or is developed for urban uses (uses which are consistent with zoning or otherwise permitted by the CRL); or 2) is characterized by lots of irregular form and shape and inadequate size for proper usefulness and development under multiple ownership; or 3) is an integral part of one or more areas developed for urban uses which are surrounded or substantially surrounded by parcels which have been or are developed for urban uses. RSG conducted an extensive review and analysis of the properties to determine whether the Study Area can be considered predominantly urbanized and meeting the requirements of Section 33320.1. In order to adequately analyze urbanization in the Study Area, information obtained during the field survey, conducted in May and June, 1996, regarding land uses, as well as the assessor parcel maps from the County of Los Angeles, have been examined to determine: ® The total number of acres within the Study Area. ® The percentage of property within the Study Area that is predominantly urbanized. ® The percentage of property within the Study Area that is nonurbanized. The results of the analysis indicate that the Study Area is predominantly urbanized and qualifies as. such under the urbanization criteria noted. As noted in Table 1, the Study Area is comprised of approximately 903 total net acres, consisting of 589 acres of properties developed for urban uses and 314 acres of undeveloped property. Of the 314 undeveloped acres in the Study Area, 188 are considered urbanized based on their location adjacent to and substantially surrounded by properties developed for urban uses. More specifically, an examination of the Los Angeles County assessor parcel maps and a review of the field survey results indicates the parcels that make up the 188 undeveloped designated urbanized acres are located throughout the Study Area in a scattered pattern. As shown on Map 1, the majority of these parcels are located within developed areas and are substantially surrounded by developed properties, which, according to Section 33320.1, is considered an integral part of an urbanized area. The remaining 126 undeveloped acres have been designated as nonurbanized due to the fact that these properties are substantially surrounded by other undeveloped properties. Table 2 provides a parcel -by -parcel breakdown of the urbanized versus nonurbanized designation for each property in the Study Area. This analysis yields an urbanization rate of 86% compared to 14% nonurbanized area (Table 1), which is well within the requirements of the CRL, as stated above. Rosenow Spevacek Group, Inc. City of Diamond Bar July, 1996 Appendix 3-1 Blight Assessment Report I IM IR IRA UIN Wl VON . T c._ cl V-4 C:6 z 9 > a C% z M I z I IM IR IRA UIN Wl VON . T c._ Table 2 CITY OF DIAMOND BAR PROPOSED REDEVLOPMENT STUDY AREA Analysis of Undeveloped Properties INTEGRAL PART PARCEL LOT OFAN NON NUMBER ACREAGE URBAN AREA URBAN 8281 029 023 3.18 X 8293 045 003 0.14 0.14 8293 045 004 18.68 18.68 8293 045 005 7.18 7.18 8293 050 002 13.33 X 8293 050 005 2.33 2.33 8293 050 011 2.38 X 8293 050 012 2.48 X 8293 050 017 3.47 3.47 8293 050 018 6.18 X 8293 050 022 6.12 X 8293 050 023 8.73 X 8293 050 031 2.39 2.39 8193 050 032 1.36 X 8293 050 036 2.70 X 8293 050 037 4.61 4.61 8293 050 040 1.97 X 8701 006 068 47.05 47.05 8701 006 902 2.50 2.50 8701006 903 1.20 1.20 8701 013 047 1.27 X 8703 002 029 5.40 X 8714 002 900 9.35 X 8714 002 901 24.29 X 8714 002 902 0.45 X 8714 002 903 0.35 X 8714 015 001 0.93 X 8717 001 006 4.70 X 8719 013 009 0.74 X 8719 020 003 0.83 X 8719 020 004 0.33 X 8760 021 802 0.08 X 8760 021 803 1.71 X 8763 001 030 0.01 X 8763 004 008 0.76 X 8763 004 010 2.03 X 8763 007 001 0.40 X 8763 007 005 0.82 X 8763 007 006 2.48 X 8763 007 018 0.18 X 8763 007 020 0.08 X 8763 026 003 0.08 X 8763 026 008 41.44 X 8765 005 001 2.25 X 8765 005 002 1.64 X 8765 005 003 1.64 X 8765 005 007 0.38 X 8765 005 009 0.11 0.11 8765 005 900 35.00 X 8765 005 901 36.41 36.41 314.12 126.07 UNDVPROP.XLS 7/11/96 APPENDIX 4 Field Survey Data Lp IT I 0�� - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - iL a- -i 0- a* a. .j -i -s a, m CL m CL m a — — — — — — — — — - 0 0 0 w w L5 CA CA N J= wcc wa zz z z z 2 02 v~i v UJI 0 0 0 er, 0 LLJ ==j C3 w F.- :!g i :tf z LU Ell EEEE.jE'?1.RR2 Aq .9 i-0 0 ch .12 cn 0 0 Cl cl -W w w w 0 co rACOD 9 cfj c C4 1 4) - g g 2 A A A -M 8 A g - - a I i! r— � a C, c1f C, CM 9 § § § 9 9 § 8 C2. 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Agenda Item 5.1 TO: " Chairman and Planning Commissioners FROM: Felice Acosta, Rosenow Spevacek Group James DeStefano, Community Development D' SUBJECT: Selection of the Diamond Bar Economic Revitalization Area and Approval of the Preliminary Plan Formulated for the Diamond Bar Economic Revitalization Area. DATE: October 21, 1996 Background In recent. years, the community has worked to determine appropriate ways to revitalize the commercial areas of the City. High vacancy rates and increasing traffic congestion have plagued the commercial areas and become increasingly problematic for the City as a whole. Because of these conditions, and in pursuit of implementing the goals of the General Plan, it was determined by the City Council to begin to explore the possibility of using redevelopment as a tool for economic development and the revitalization of the commercial areas. The City Council has taken the first steps in this process. On April 2, 1996, the Council declared the need for a redevelopment agency and established a Community Redevelopment Agency to function in the City. In April, 1996, the City Council retained the services of Rosenow Spevacek Group, Inc. ("RSG"), a redevelopment consulting firm, to evaluate the feasibility of redevelopment in the City. In addition, the services of Economic Research Associates was retained to evaluate the prospects for economic development in the City. The feasibility study was prepared and presented to City Council in September. The report on prospects for economic development was presented in October. The information presented in these studies confirmed that selected areas in the City may qualify for inclusion in a redevelopment project area and benefit from redevelopment activities. On September 24, the Diamond Bar Redevelopment Agency ("Agency") adopted Resolution No. R-96-07 designating a redevelopment survey area. for study purposes. The California Community Redevelopment Law ("CRL)" provides that, at the direction of the City Council, the Planning Commission shall select one or more project areas comprised of all or part of the survey area upon its own motion, at the request of the Agency, or. the direction of the City Council. The CRL also provides that the Planning Commission, in cooperation with the Agency, shall formulate a preliminary plan for the redevelopment of each selected project .. area. Page 2 Staff recommends that the Planning Commission adopt the attached Resolution approving the Preliminary Plan for the proposed Diamond Bar Economic Revitalization Area (the "Preliminary Plan") which confirms the selection of the proposed project area boundaries. Anal The City Council is interested in pursuing redevelopment of the commercial areas generally along and surrounding the 57 (Orange) Freeway and the 60 (Pomona) Freeway corridors, as well as the other major commercial corridors within the City. Requirements for adopting and implementing redevelopment projects are established in the CRL (Health and Safety Code, Section 33000 et sgq.. The Planning Commission's role in the redevelopment plan adoption process is prescribed by the CRL. The Commission is involved at several junctures during the redevelopment plan adoption process which typically takes 6 to 9 months to complete, as illustrated n the attached schedule. The Agency's boal :s to accomplish the adoption process by June to ensure (if approved) that the project will secure the 1996-97 equalized tax roll as its base year tax roll. Briefly, the Planning Commission's role in the adoption process is limited to: (1) confirming proposed project area boundaries and approval of the preliminary plan; (2) upon transmittal of the draft redevelopment plan's conformance with the General Plan; and (3) if Agency or City Council reduces proposed boundaries, those boundaries must be confirmed by the Planning Commission. The first Planning Commission input opportunity occurs with the selection of the redevelopment project area or project areas and the preparation of a preliminary plan or preliminary plans for the areas selected. After the City Council or Agency has designated survey area for study to determine whether a redevelopment project within the area is feasible, the CRL provides that the Planning Commission, in cooperation with the redevelopment agency, shall select a project area comprised of al or part of the survey area and shall formulate a preliminary plan for the redevelopment of the selected project area. The preliminary plan is a brief document that contains elements required and prescribed by the CRL, including: A description of the boundaries of the project. The boundaries will be all or part of the survey area designated by the City Council or Agency. A description of the layout of principal streets. A general statement of the land uses, population densities and building intensities and standards proposed for the redevelopment of the project area. Land uses, population densities and building intensities will be those permitted by rhe City's General Plan. Building standards will follow State statutes and local codes and ordinances. A statement that the proposed redevelopment conforms to the City's general plan. Page 3 A statement of how the project will attain the purposes of the CRL. The purposes of the CRL, are to protect and promote the sound development of deteriorated areas and the general welfare of the people in their communities. These purposes will be attained in the proposed area through, among other things - rehabilitation of deteriorated buildings and public improvements; assemblage of land into parcels suitable for modern integrated development with improvement pedestrian and vehicular circulation; replanning, redesign and development of undeveloped or underdeveloped areas which are stagnant or improperly utilized; and the participation of owners and tenants in the revitalization of their properties. The purposes of the CRL will also be achieved by stimulating construction activity and increasing employment opportunities. A general description of the impact of the project upon residents in the community and in the surrounding. community. The project will have a positive impact on the residential community both in and adjacent to the project area by improving general conditions in the area through modernization, planning, development, redesign and rehabilitation of property and public improvements in the area. After the Planning Commission has adopted a preliminary plan for a proposed redevelopment project, the Redevelopment Agency prepares a redevelopment plan for the project, based on the preliminary plan. The redevelopment plan will outline the powers of the Agency with regard to the redevelopment of the proposed Project Area. It will contain goals and objectives consistent with those in the General Plan, and will allow the Agency to utilize redevelopment to effectively implement the General Plan. Prior to the redevelopment plan adoption public hearing, the draft redevelopment plan will be transmitted by the Agency to the Planning Commission for their review and recommendations. At the same time, the Planning Commission must make a determination as to whether the draft redevelopment plan is in conformance with the General Plan. The Redevelopment Agency, as the lead agency for CEQA, ,has engaged the services of Cotton/Beland/Also -iates, Inc. to.prepare an environmental impact report ("EIR") for the proposed Project. The Planning Commission is typically one of the entities to whom the draft EIR is circulated for -review and comment. This provides the Commission with another opportunity to participate in the redevelopment project adoption process. The redevelopment plan prepared by the Agency must be adopted by the City Council after holding a joint public hearing. Before the Council holds the joint public hearing, however, the proposed plan must be submitted to the Planning Commission for its report and recommendations. If after this review the Agency or City Council make changes to the project area boundaries, the boundaries must go back to the Planning Commission for confirmation.'- After onfirmation..-After the redevelopment plan has been adopted, the Planning Commission is involved at the land use level with carrying out the project. This participation is necessary to the extent required by the General Plan, zoning, subdivision, and other codes. Zoning variances, J Page 4 development review, conditional use permits, the filing of subdivision maps, the vacation of streets, and other implementation activities nor"mally subject to Commission review or approval will continue to be referred to the Commission in accord with the City's requirements. In summary, the proposed project area boundaries as shown in the Preliminary Plan may be charged as a result of input received during the adoption process, however, these changes must come back to the Planning Commission before the adoption. of the approval ordinances. Please note that the Project Area boundaries can easily contract but cannot be expanded without starting the redevelopment plan adoption process again. Recommendation Staff recommends that the Planning Commission adopt the attached Resolution selecting the boundaries of the Diamond Bar Economic Revitalization Area and approving the Preliminary Plan formulated for the redevelopment of the project area. attachments PRELIMINARY PLAN FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA October, 1996 Prepared for: Diamond Bar Redevelopment Agency 21660 East Copley Drive, Suite 100 Diamond Bar, California 91765 - (909) 860-2489 Prepared by: Rosenow Spevacek,Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 (714) 541-4585 SECTION I. SECTION 11. SECTION 111. SECTION IV. SECTION V. SECTION VI. PRELIMINARY PLAN FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA TABLE OF CONTENTS INTRODUCTION...................................................................................... I PROJECT AREA LOCATION AND DESCRIPTION .........................1 GENERAL STATEMENT OF PROPOSED PLANNINGELEMENTS ......................................................................... 2 A. Land Uses ......................................................................................... 2 B. General Statement of Proposed Layout of PrincipalStreets ............................................................................... 2 C. General Statement of Proposed Population Densities ..................... 2 D. General Statement of Proposed Building Intensities ....................... E. General Statement of Proposed Building Standards ........................ I ATTAINMENT OF THE PURPOSES OF THE LAW ........................... 3 CONFORMANCE TO THE GENERAL PLAN OF THE CITY .........4 GENERAL IMPACT OF THE PROPOSED PROJECT UPON THE RESIDENTS OF THE PROJECT AREA AND SURROUNDING NEIGHBORHOODS................................................................................ 4 EXHIBIT A PROJECT AREA MAP PRELIMINARY FOR THE DIAMOND BAR ECONOMIC REVITALIZATION AREA I. INTRODUCTION This document is the Preliminary Plan ("Plan") for the Diamond Bar Economic Revitalization Area ("Project"). The Plan's purpose is to designate the boundaries of the proposed Project Area and to provide a general description of the proposed Diamond Bar Economic Revitalization Area. This Plan has been prepared in '~accordance with Section 33324 of the California Communis% Redevelopment Law ("CRL") which states that the Plan should: (a) Describe the boundaries of the project area; (b) Contain a general statement of land uses and of the layout of principal streets. population densities, building intensities and standards proposed as the basis for the redevelopment of the project area; (c) Show how 'the ptupose of the preliminary plan would be attained h,, redevelopment; (d) Show how the preliminary plan conforms to the community's general plan; and (e) Describe,- generally, the impact of the Project upon residents of the project area and surrounding neighborhoods. H. PROJECT AREA LOCATION AND DESCRIPTION Exhibit A presents the map depicting the boundaries of and the area proposed for inclusion in the Diamond Bar Economic Revitalization Area -("Project Area"). The proposed Project Area includes commercial properties along the 57 (Orange) and 60 (Pomona) Freeways within the Cite of Diamond Bar, as well as commercial and light industrial properties along major thoroughfares. such as Diamond Bar Boulevard, Grand Avenue and Brea Canyon Road. The Project Area is` generally bounded by Highland Valley Road to the north, Summitridge Drive to the east, the Ci 111 limits to the west and the southernmost City limit to the south. The Project Area is approximately 903 acres in size and is predominantly urbanized pursuant to Section 33320.1 of the CRL. Existing development includes commercial, office, industrial. public uses, and two single family dwellings. Blighting conditions that are proposed to he addressed through redevelopment include structural deterioration, substandard design, lack of parking, incompatible uses, depreciated/stagnant property values, high business vacancies. anal inadequate public improvements. Rosenow Spevacek Group; Inc. Diamond Bar Redevelopment : t -enc r October 21, 1996 Preliminan Plan 1 M. GENERAL STATEMENT OF PROPOSED PLANNING ELEMENTS As a basis for the redevelopment of the proposed Project Area, it is proposed that uses be permitted in conformance with the General Plan of the City, as amended from time to time, and all other applicable state and local codes and guidelines. A. Land Uses Within the proposed Project Area, land uses shall be those permitted by the City of Diamond Bar General Plan ("General Plan"). Among the permitted uses are: • Commercial ® Industrial ® Office ® Parks/Schools/Public Facilities ® Open Space • Vacant Land ® Residential B. General Statement of Proposed Layout of Principal Streets The principal streets within the Project Area are shown on Exhibit A. These include Diamond Bar Boulevard, Grand Avenue, Golden Springs Drive, La Colima Avenue, Brea Canyon Road, and Pathfinder Avenue. The layout of principal streets and those that may be developed in the future shall conform to the Circulation Elements of the City of Diamond Bar General Plan, as currently adopted or is hereafter amended. Existing streets within the Project Area may be widened or otherwise modified and additional streets may be created as necessary for proper pedestrian and/or vehicular circulation. C. General Statement of Proposed Population Densities Permitted densities within the Project Area shall conform to the City -of Diamond Bar General Plan and Zoning Ordinance, as currently adopted or are hereafter amended, and other applicable codes and ordinances. This Plan and the Project do not propose any changes to population densities, development densities, or land use designations. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment Agency October 21; 1996 Preliminary Plan 2 D. General statement of Proposed Building Intensities Building intensity shall be controlled by limits on: (1) the percentage of the building site. covered by the building (land coverage), (2) the ratio of the total floor area for all stories of the building to the area of the building site (floor area ratio), (3) the size and location of the buildable area on the building site; and (4) the height of the building. The limits on building intensity shall be established in accordance with the provisions of the General Plan and the Zoning Ordinance of the City of Diamond Bar, as they now exist or are hereafter amended. This Plan and the Project do not propose any changes to population densities, land use designations, or building intensities. E. General Statement of Proposed Building Standards Building standards shall conform to the building requirements of applicable codes and ordinances. IV. ATTAINMENT OF THE PURPOSES OF THE LAW Selection of the Project Area boundaries was guided by the existence of blight, as defined by the CRL. Redevelopment of the Project Area would attain the purposes of the CRL by alleviating blighting conditions that the private sector, acting alone, cannot remedy. Among the blighting conditions existing in the Project Area are the following: The commercial and industrial corridors in the City are impacted by deterioration and dilapidation; defective design; substandard design; a lack of parking; stagnating property values; impaired investments; incompatible uses; and excessive vacant lots. Public infrastructure systems such as streets, curbs, gutters, and sidewalks are substandard and existing capacity is insufficient. The purposes of the CRL would be attained by the proposed redevelopment through, among other things: (1) the elimination of environmental deficiencies, including, among others, small and irregular lots, incompatible land uses, obsolete and aged building types, and deteriorated public improvements; (2) the assemblage of land into parcels. suitable for modern integrated development with improved pedestrian and vehicular circulation; (3) the replanning, redesign and development of undeveloped or underdeveloped areas which are stagnant or improperly utilized; and (4) the participation of owners and tenants in the revitalization oftheir properties. Redevelopment of the proposed Project Area would also attain the purposes of the CRL by stimulating construction activity and increasing employment opportunities. Rosenow Spevacek Group, Inc. Diamond Bar Redevelopment agency October 21, 1996 Preliminary Plan 3 V. CONFORMANCE TO THE GENERAL PLAN OF THE CITY This Plan conforms to the General Plan of the City of -Diamond Bar. It proposes an identical pattern of land uses, and includes all roadways and public facilities as indicated by the General Plan. The impact of the Plan upon existing residential uses within the proposed Project Area and residences lying outside of the proposed Project Area will generally be in the areas of improved living environment and economic activity. It is the desire of the Diamond Bar Redevelopment Agency ("Agency") to avoid or minimize the displacement of residents as a result of redevelopment activities. As proposed, the boundaries include only two (2) residential dwellings, therefore, displacement is not anticipated. However, if displacements were to occur, pursuant to the CRL, the Agency will be responsible for relocating residents displaced by the Agency and for providing last resort housing if necessary, as well as replacing any low and moderate income housing units removed from the housing stock. It is anticipated that the impact of the plan will be positive. It is the intent to address and rectify only adverse conditions within the proposed Project Area. Further, any adverse environmental impacts will be identified by the environmental review process with mitigation measures identified to address specific impacts. Plan implementation will be subject to future review and approval by the City Council, Redevelopment Agency, Planning Commission, and other appropriate bodies as directed by the Redevelopment Agency Board after input from affected property owners, business owners, residents, and other interested parties. Rosenow Spevacek Group, Inc. Diamond Sar Redevelopment Agency October 21, 1996 Preliminary Plan 4 EXHIBIT A Project Area Map CITY O DIAMOND BAM CALIFORNIA PREPARED FOR THE CITY OF DIAMOND.EAR AND THE DIAMOND DAR REDEVELOPMENT AGENCY PREPARED BY ECONOMICS RESEARCH ASSOCIATES OCTOBER 15, 1996 PROJECT NO. 11841 Economics Research Associates Affiliated with Drivers Jonas TABLE OF CONTENTS Section - - PREFACE ...........:........ I COMMUNITY OVERVIEW I ........................................................ .................. Introduction I- 1 ....................................... Sociodemographics ......................... Employment.....::.......................................:........................:. I- 6 II ANALYSIS OF COMMERCIAL REAL ESTATE MARKETS INDIAMOND BAR .............. ............:.......................................... II- 1 Commercial/Retail Space .................................................... Professional Office Space II- 2 .......................... I.......................... II- 2 IndustrialSites................................................................... II- 3 . VacantLand......................................................................... II- 3 IIIRETAIL SALES ........................................................................... III- 1 IV ECONOMIC BLIGHT ................................................................. IV- 1 Property Conditions/Prior Site Planning ............................. IV- 1 MarketConditions............................................................... IV- 2 Industrial Space.................................................................... IV- 5 Indices of Economic Blight ................................................. IV- 5 V NICHE MARKETS FOR DIAMOND BAR ................................ V- 1 VI COMMUNITY CAPACITY TO GENERATE ECONOMIC DEVELOPMENT......................................................................... VI- 1 Appendices A INVENTORY OF COMMERCIAL AND INDUSTRIAL PROPERTIES IN THE CITY OF DIAMOND BAR ................... A- 1 13. INVENTORY OF DIAMOND BAR BUSINESSES ................... B- 1 C ESTIMATES OF 1995 POPULATION CHARACTERISTICS FOR DIAMOND BAR AD FOR A 5 -MILE RADIUS RING FROM THE CITY CENTER ....................................................... C- 1 iii c, M Affiliated with Drivers Jonas Source: 1990 Census, State Department of Finance, and Economics Research Associates. 1990 1991 1992 1993 1994 1995 1996 Residential Population 53,672 53,596 53,756 54,315 54,507 55,284 55,993 Total Housing Units 17,664 17,711 17,741 17,813 17;819 17,853 17,862 SFDUs-Detached 15,126 --- 12,536 12,554 12,560 12,560 12,569 SFDUs -Attached (included --- 2,667 2,667 2,667 2,667 2,667 above) WDUs-2-4 units 2,270 --- 495 495 495 495 495 WDUs - 5+ units (included --- 1,775 1,829 1,829 1,863 1,863 above) Mobile Homes 268 --- 268 268 268 268. 268 Occupied Housing Units 16,901 --- 16,992 17,095 17,089 17,111 17,091 Vacant Housing Units 763 -- 749 718 730 742 771 % Vacant 4.32 4.24 4.22 4.03 4.10 4.16 4.32 Persons per Household 3.176 3.160 3.164 3.177 3.190 3.231 3.276 Source: 1990 Census, State Department of Finance, and Economics Research Associates. I Economics Research Associates Affiliated with Drivers Jonas Section II ANALYSIS OF COMMERCIAL REAL ESTATE MARKETS IN DIAMOND BAR Table II -1 Summary. of Commercial Land.Use Survey, Diamond Bar, May 1996 Available Available Acres Sq.Ft. Developable Commercial Sites 34.56 1,507,287 Source: Economics Research Associates, Economics Research Associates ProspectsjorEconomicDevefopment Project No. 11841 Page II -1 Total Tenant Vacant Total Vacant Percent Type Spaces Spaces Sq.Ft. Sq.Ft. Vacant Comm ercial/Retai 1 491 116 1,160,489± 171,954 14.8% Professional Office n.a. n.a. 1,104,678± 96,157 8.7% Industrial Space 245+ ' 5 1,061,010± 62,394 5.9% Available Available Acres Sq.Ft. Developable Commercial Sites 34.56 1,507,287 Source: Economics Research Associates, Economics Research Associates ProspectsjorEconomicDevefopment Project No. 11841 Page II -1 CI) CL cc E E ®- O LO cp CD 0 0 CP A- r m M X 0 0 E2 co B 0 Affiliated with f CI) Ci CY LO Im CA CA vi a. 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U 5 v� .. = co N 2 ►- a- X a m° m o ° U CL Je _g M m m ry ao c c m Eec m "0 .g o h m w oo 0 ci_ K Affiliated with Drivers Jonas Section V 110 Five initial retail concepts emerged from this'scan of possibilities: 1. New and upgraded restaurants and the rapidly evolving "experience restaurant" groups (e.g. Rainforest Cafe, Country Star, P.F. Chang's, etc.). 2. Specialty retail collections which move toward the "anti -mall" phenomena now developing in upper middle income market areas. 3. Retail -dining -entertainment ("RDE") assemblies which are becoming "trademarked" regional attractions. 4. Conversion of available vacant buildable office park pads to higher value higher volume retail outlet potentials (e.g. computer stores such as Fry's, food markets such as Bristol Farms, athletic and sports equipment stores such as Sportmart, etc.). This concept particularly focuses upon appropriately located pads at the Gateway Corporate Center. S. "Crossroads retail" nodes. Presently Diamond Bar contains a unique property assembly on the southeast corner of Golden Springs Drive and Grand Avenue which could accommodate major chain retailers such as a bookseller (Barnes and Noble, Borders Books and Music, Bookstar, Super Crown, etc.) and/or an assembly of higher quality stores such as: ® Restoration Hardware ® Williams Sonoma ® Crate and Barrel 0 Gap and others. Economics Research Associatzs ProspectrjorEconomic Development ERA Project No. 11841 Page v-1 ;pll I • 11 1 :li 1, Affiliated with Drivers Jonas cc C)0 oC) = c, ag VS 00 C) cc E E tr N et O W 0 !r r- C4 0 O OQ IS 181 1:11 O 1, 00c) C= CS,00 Cc) O 00 C) IRT Cli opo00 C> .*r 06 N, Ir.11 C> (51 " C,� cq rq ItT ;z t� C� C� V� C� �- E O C= CD 0 4= C> c 0 C> C> C> (51 c ri 01� 011 C� ,� C� C� V� C� CL 00 kn C� ON 00 �- E Ln Nq C) en I ljl� CD 0 4= C> c 0 C> C> C> (51 c ri 01� 011 C� ,� C� C� V� C� CL 00 kn C� r-4 C= t= mt "0 C� C� M 0 �2 r'. = ,�r 0 N — C-4 CN 0 cc 0 Ln Nq C) en I ljl� N O GA c. 'S C tu E C ro C m E 4) ro to E m E "0 "a C 1 E E o (u 0 E E E E 0 r > to to 0 C X to V 0 V 0 E t.- (U 0 C4 E .2 E 0 0 V) CL 0 cc 0 -E 0 Cc CO C.1 Cd 2 0 C) cn cc 0 cu r- Up, x cny u V 5 U C tm 0 0 = * 0 C) -5) L 94 *-- t— 00 E 0 cz �P, g M �: o L) ccz�. — 2 = •= M 0 -04 cued r m cc —M f E r 0 E E Ln ce C/) r>- E 'to 0 0 U U W C) N O GA c. 'S C tu E C ro C m E 4) ro to E m E "0 "a C 1 E E o (u 0 E E E E 0 r > to to 0 C X to V 0 V 0 E t.- (U 0 C4 E .2 E 0 0 V) Economics Research Associates Affiliated with Drivers Jonas Table CITY OF DIAMOND BAR COMPARATIVE COMMERCIAL AND INDUSTRIAL PATA (Floor ' F . T Square Feet) Commercial Industrial Floor Areas Floor Areas Total 1. Inventory of Estimated Existing Space in the General Plan Documents Retail 1,950,000± Office 2,750,M± Total 4,700,000± 1,165,000± 5,865,000± 2. Target of Space in the General Plane Retail 2,559,150± Office 1,$229,520± Total 4,388,670± 1,012,770± 5,401,440± 3. May 1996 Inventory of Existing Space (by ERA) Retail 1,160,500± Office Total 2,265,200± 1,061,000± 3,326,200± 4. Total City Resident Space Demand at Square Feet Per Capita in Buying Area (by ERA) Retail 11971,200± Office I&a4o± Total 3,029,600± 2,800,000± 5,829,600± 5. Total Incremental Demand at Square Feet Per Capital in Community Retail 616,000± Office 285.§QQ± Total 901,600± 840,000± 1,741,600± 'From General Plan Land Use Element, page I4; Table I-1. This data appears to show the potential developable floor area—both existing and at buildout under prior land use designation for vacant properties. 2From General Plan Land Use Element, page I-25, Table I-3. This data shows potential buildout of floor space under the adopted General Plan. Source: City of Diamond Bar General Plan, and Economics Research Associates. Economics Research Associates Affiliated with Drivers Jonas #11841 VLT4 Table V14 L Y SLT . Y OF . _ SE INNS CO R TAI SM 30 sites inventoried ® 491 tenancies, of which 116 were vacant (24%) 1,160,489 sq.fi. of total floor area, of which 171,954 sq.ft. was vacant (15%) PROF SSIONAL OF'1r'ICE-SDIES 22 sites inventoried ® Data on tenancies incomplete ® 1,104,6711+ sq.ft. of total floor area, of which 96,157 sq.R. was vacant (9%) EDIUST'IRIAL SITES ® 20 sites/facilities inventoried ® There are 245+ tenancies; there appears to be vacant available space for 34+ tenancies (14%) ® 1,061,010+ sq.R. of total floor area, of which 62,364 sq.ft. was vacant (6%) YACANT QQM3ERCIALIAND SITES ® 1 I vacant available sites 35+ acres 9 of the sites he within the Gateway Center development area Source: Economics Research Associates. Economics Research Associates Affiliated with Drivers Jonas Table VI -7 #11841VI.77 1. Virtually all data sources (governmental and private, including commercial market demand/"buying power" indicators) define Diamond Bar positively as a healthy higher end sociodemographic/spendable income place. (Census, SCAG, DoF, UDS, Sales and Marketing Management, etc.) 2. Known location — because of the freeway interchanges — with a reputation of freeway congestion. 3. Like many other communities, it is considered a well-to-do peripheral hillside community contributing to the prospects of new retail arrivals on the San Gabriel Valley Floor —. which is generally overbuilt and internally cannibalizing itself as chains, centers, and districts close stores, consolidate floor space, and are diluted by new "shop for value" arrivals. 4. Communities surrounding Diamond Bar know relatively little about the City's retail base — it's hidden away by the topography. 5. The casual observer and the regional residents get it right the first time when they see the City's retail centers — Diamond Bar is predominantly a collection of neighborhood and community shopping centers. 6. Differentiation of goods (i.e. "shop for value") has happened elsewhere nearby in the San Gabriel Valley and recently in Pomona and Chino — in very high -visibility freeway -oriented locations. Clusters of power centers, "big boxes," and other more recent retail market entrants have and are, occurring on very large available property groups greater in size than Diamond Bar commands. 7. Because of the strength of household purchasing power, and the convenience of in - community locations, the City's neighborhood and community shopping centers may not be in serious jeopardy from the "shop for value" bulk buying phenomenon. 8. Diamond Bar is part of a larger cluster of high income households including Rowland Heights, Walnut,Chino Hills, and the Phillips Ranch portion of Pomona. Source: Economics Research Associates. Affiliated, with Drivers Jonas 411841VI.T8 CITY OF 1+ ,D BAR RETAIL/COMMEICI!,LMRIISMUT:l�ill-L t, 1. Retention and transition must be simultaneous goals. ® Markets capture/penetration must be retained. Existing tenants should be retained = and must transition themselves as consumer retail, office demand, and industrial space users are transformed. 2. The City has many business firms, more than 1,500. There are 1,239± State sales tax permit holders of which 303 are recorded by the State as being retail stores in late 1995. There are 245 industrial tenancies. There are 200± office space tenancies (probably considerably more). 3. Diamond Bar is a regionally convenient location — becoming more central as the Southern California urban region continues to ' infill. Like the "rediscovery" of Pomona, Diamond Bar benefits from a "midway" position and from oncoming regional transformation as "Gateway" to: • Orange County • San Gabriel Valley ® Western San Bernardino Valley 4. The range of available floor areas (size, quality) provides for new business start ups, expansion within the community, and new location choice by medium-sized firms. In the near term (for the net 2 to 3 years) the City must concentrate upon partnerships with existing property owners targeted. at retenanting existing floor spaces. The City has already begun to concentrate on the retail properties and has assembled a floor space data base and information packets which can be proactively used with potential tenant prospects. 5. If the "price is right" concerning all elements of lease terms, Diamond Bar should be able to excel as a higher end incubator/new firm startup location in both its office and industrial space inventories.. Source: Economics Research Associates. Economics Research associates Affiliated with Drivers Jonas )Many of the cities report they will uniquely negotiate inducements on a case-by-case basis. This column deals only with program or project areas. 2E,G,T,W = Electricity, Gas, Telephone, Water. Over 5 years Pomona will reduce its utility user tax rates to 5 percent. Source: 1996 Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives, and Economics ' #11841VLT9 Table VI -9 COMPARATIVE COSTS OF DOING BUSINESS AND INCENTIVES PROGRAMS Business Utility Incentives . License Tax User Tax Programs) Diamond Bar Only used for business None None registration purposes Walnut Low fees, employee based, None None maximum is $150 Pomona Gross receipts, and per 10% 11 CRA projects employee fee E,G,T,WZ Revitalization (state) tax credits West Covina Per employee fee None I consolidated redevelopment area Los Angeles County Only used for business 5% None in area near registration purposes E,G,T Diamond Bar Chino Hills $50[business/year; a None None registration purpose Chino Gross receipts, and employee None 3 redevelopment areas fees with low caps Brea Gross receipts with low caps None 3 redevelopment areas )Many of the cities report they will uniquely negotiate inducements on a case-by-case basis. This column deals only with program or project areas. 2E,G,T,W = Electricity, Gas, Telephone, Water. Over 5 years Pomona will reduce its utility user tax rates to 5 percent. Source: 1996 Kosmont Survey of Municipal Business Fees, Taxes, and Economic Incentives, and Economics Economics Research Associate Affiliated with Drivers Jonas Table VI -10 #11841V1.T10 POTENTIAL ADDITIONAL ECONOMIC DEVELOPMENT INITIATIVES Note: These concepts have risen from conversations between the consultants and City staff, and are developed in note form here for further consideration. Potential commercial tenancy space in the SCAQMD building. As District staffing downsizes floor spaces will be available. The landmark character of the building represents an opportunity to market discrete floor spaces for emerging technology creators — principally as office floor users. This initiative also provides for a positive and futures -oriented marketing theme, Technical education uses will also be appropriate. 2. Upgrade/improve clubhouse hosting capacities at the Diamond Bar Golf Course in joint venture with Los Angeles County.. Clubhouse capabilities could be expanded (or replaced) so that small regional business meetings, social events, and larger amateur golf tournaments could be programmed at the site. The business objective would be the attraction of regional events, which would greatly enhance community reputation and potential business tenant capture as well. Additional commercial sports/fitness ventures, on' adjoining private properites, concentrate a unique draw.to the City and will be in conformance with capture of nearby upper income household recreational expenditures. 3. "Diamond Bar Home Office" —a series of initiatives: A. To market the re-emerging regional locational_ advantages for office space. B. To market the City as "home office friendly" for creative talents and professionals vdio desire to establish true offices at home. C. To focus upon capture of the series of services and technologies which both regional offices and offices at home require in order to gain and hold competitive. location advantages. 4. The Citywide Business Improvement District This concept involves formulation of an assessment district for marketing all of the Cit'.'s commercial retail, office, and industrial potentials. It could generate, through very modest assessments, a budget for targeted promotional activities, outreach to capture needed infill retail and commercial services businesses (and tenants), and create a communitywide business development corporation which operates the programs with the assessment funding under contract with the City. This type of initiative should probably be pursued after the November, 1996 vote on Proposition 218 --"the right to vote on taxes act." 5. Professional retail recruitment. While City staff have prepared excellent data bases and are fully familiar with the retail locations experiencing tenant vacancies, it will be appropriate to next consider engaging a firm to deliberately identify and pursue retail tenant prospects. A specific proposal has been made for such services. Source: Economics Research Associates. Affiliated with Drivers Jonas -,h Associates Table VI -11 EXAMPLE POTENTIAL NEAR TERM NEW COMMERCL&L AND INUSTRLAL DEVELOPMENT PROJECTS IN DUMOND BAR (1996-20 1. "RDE"—retaiUdffiing/entertainment project (80,000 sq.ft.) 2. New multi -screen cineplex (34,000 -sq.ft.). 3. Multi -tenant industrial development at school district property site (120,000 sq.ft.) 4. Technical school lease/possessory interest use of portion of SCAQMD Space (40,000 sq.ft.) 5. Dinner house/banquet facility on hilltop/overlook site (10,000 sq.ft) 6. "Upscale retail collection" (30,000 sq.ft.) 7. "Computer warehouse" retailer (100,000 sq.ft.) 8. High security high value electronics distribution warehouse --"just in time" turnover rates (in the industrial area) (100,000 sq.ft.) 9. K -Mart expansion project (+40,000 sq.ft.) 10. Orchard Supply Hardware (OSH) type retailer (80,000 sq.ft.) 11. Existing community shopping center renovation (100,345 sq.ft.) 12. Sports-fitness/tennis center near/adjacent to Diamond Bar Golf Course (40,000 sq. ft. + 12 tennis courts) t I r.AMA ie o W M�bzkily'a R W E C5 Z W r� q 0 C) N Economics r,4 00 es cri t arch "Ir 4,11 60� Associates Y,!fit lfated with Driv rs 6Lona� 69 6969'69 4q 40S 000 (.oq 69 RfA (A fA N 00 4A 4A CD 8 Jn C, 00 C; 4 C7 V5 0 C) R 69 69 64 fig 169 64 K A loq A 9 6969&nf r U 41) �Q fA rqC-4 40� 5 Cn M 2 00 Wi e4 r! W1 --T 44 69 t .2 H E 94 + O to Gj En W1 W CO 00 M — r- M ;; H kn 46q 69 Cr W C> O M 17! 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Oc C> 0 9 40q (A 69 feq 696N94oq E 0. 9 0 0— CL -5 U .2 > 0 u Cu 3> 477-9585 Fax: (310) gton, D.C. - London O 00 69 O rl- O C) O ao fA 0 V, E 190' - C- C) O N 000 (.oq 69 (k O C� n 8� R 69 69 64 fig 169 64 K 00 0O 41) �Q fA rqC-4 40� Oc C> 0 9 40q (A 69 feq 696N94oq E 0. 9 0 0— CL -5 U .2 > 0 u Cu 3> 477-9585 Fax: (310) gton, D.C. - London O 00 69 O rl- O C) O ao fA 0 V, E 190' - C- INTEROFFICE MEMORANDUM TO: Chairman and Planning commissioners. FROM: Ann J. Lungu, Assistant Planner Q4_/___1 SUBJECT: Extension of Time for Development Review No. 94-2 DATE: October 21, 1996. A— I— The referenced project, located at 21008 Lycoming Street, was approved by the Planning Commission on January 23, 1995. A condition of approval stated "This grant is valid, for two years and must be exercised .(i.e., construction started) within that period or this grant will expire. A one year extension may be requested in writing and submitted to the City 30 days prior to the expiration date". On September 13, 1996, the applicant submitted an extension of time request (see attachment). The extension of time request is for one year expiring on January 23, 1998. The extension of time does not physically alter the project. Furthermore, the request's approval does not generate new impacts or additional mitigation measures. On January 23, 1995, the project was in compliance with the City's proposed General Plan and the project site's -zoning (C-1) . The project remains in compliance with the adopted General Plan land use designation (General Commercial) and zoning. NOTICE OF PUBLIC HEARING: This item was advertised in San Gabriel Valley Tribune and Inland Valley Daily Bulletin on -October 17, 1996. Notices were mailed to 158 property owners within a 300 foot radius of the project site on October 15, 1996. ENVIRONMENTAL ASSESSMENT: Pursuant to the provisions of the California Environmental Quality Act (CEQA) , Section 15162(a), the city has determined that the extension of time request is consistent with the previously approved Negative Declaration No. 94-6. RECOMMENDATION: Staff recommends that the Planning commission approve a one year extension of time for Development Review No. 94-3, Findings of Fact and conditions as listed within the attached resolution. Attachments: 1. Draft Extension of Time Resolution; 2. Resolution No. 95-3 approved January 23, 1995; 3. Staff reports dated December 5, 1994 and January 19, 1995; 4. Exhibit "A" dated December 12, 1994; and 5. Correspondence dated September 13, 1996. A. PLANNING COM14ISSION RESOLUTION NO. 96 -XX 4e4 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DIAMOND BAR APPROVING DEVELOPMENT REVIEW NO. 94-2(1), A REQUEST FOR A ONE YEAR EXTENSION OF TIME, BEGINNING JANUARY 23, 1997 IN ORDER TO -CONSTRUCT A 17,867 SQUARE FOOT TWO-STORY PROFESSIONAL OFFICE BUILDING LOCATED AT 21008 LYCOMING STREET (LOT 7, TRACT 2166), DIAMOND BAR, CALIFORNIA. RECITALS. 1. The property owner, Gary Miller of G. Miller Development Co..has filed an application for Development Review No. 94-2(1), a one year extension of time, located at 21008 Lycoming Street, Diamond Bar, Los Angeles County, California, as described above in the title of this Resolution. Hereinafter in this Resolution, the subject Development Review/Extension of Time shall be referred to as the "Application". 2. on April 18, 1989, the City of Diamond Bar was established as a duly organized municipal corporation of the State of California. Thereafter, the City Council of the City of Diamond Bar adopted its Ordinance No. 14 (1990), thereby adopting the Los Angeles County Code as the ordinances of the City of Diamond Bar. Title 21 and 22 of the Los Angeles County Code contain the Development Code of the County of Los Angeles•now currently applicable to development applications, including the subject Application, within the City of Diamond Bar. 3. Originally, Development Review No. 94-2 was approved on January 23, 1995. This approval was valid for two years and must be exercised (i.e., construction started) within that period or the approval would be expired. Addition- ally, this approval allows for a one year extension of time if requested in writing 30 days prior to the expiration date of January 23, 1997. 4. On September 13, 1996, the applicant, in writing, requested an extension of time. 5. Action was taken on the subject application as to the. consistency with the General Plan. It has been determined that the proposed project is consistent -with the General Plan. 1 L-2 6. The Planning Commission of the City of Diamond Barlo October 28, 1996 conducted a duly noticed public he9a4, Zg^ on the Application.- Irk I If 7. Notification of the public hearing for -this project has been made in the San Gabriel Valley Tribune and Inland Valley Daily Bulletin newspapers on October 17, 1996. One hundred and fifty-eight property owners within a 300 foot radius of the project site were notified by mail on October 15, 1996. Resolution. NOW, THEREFORE, it is found, determined.and resolved by the Planning Commission of the City of Diamond Bar as follows: 1. This Planning Commission hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Resolution are true and correct. 2. The Planning Commission hereby determines that the extension of time identified above in this Resolution is consistent with the previously approved Negative Declaration No. 94-6 pursuant to the provisions of the California Environmental Quality Act (CEQA) and guide- lines promulgated thereunder, pursuant Section 15162 (a) of Article 11 of Chapter 3 of Title 14 the California Code of Regulations. .3. The Planning Commission hereby specifically finds and determines that, having considered the record as a who -le including the findings set forth below, and changes and alterations which have been incorporated into and conditioned upon the proposed project set forth in the application, there is no evidence before this Planning Commission that the project proposed herein will have the potential of an adverse effect on wild life resources or the habitat upon which the wildlife depends. Based upon substantial evidence, this Planning Commission hereby rebuts the presumption of adverse effects contained in Section 753.5-(d) of Title 14 of the California Code of Regulations. 4. Based on the findings and conclusions set forth herein, this Planning Commission hereby finds as follows: (a) The project relates approximately 42,026 is located at 21008 California. to an undeveloped site of square feet. The project site Lycoming Street, Diamond Bar, (b) The project site has a General Plan Land Use designation of General Commercial (C). It is within the Restricted Business. (C-1) Zone. (c) Generally, the followingzonessurround the project site: to the north is the Neighborhood Business - Billboard Exclusion (C -2 -BE) and Limited Multiple Residence (R-3) Zones; to the south is the Ligh Manufacturing -Development Plan -Billboard Exclusion' (M -1 -DP -BE) Zone; to the east is the Single Family Residence -Minimum Lot Size 6,000 Square Feet (R-1- 6,00.0) Zone; and to the west is the Restricted Business -Development Plan (C -1 -DP) and Residential Agricultural -Minimum Lot Size 8,000 Square Feet (R- A -8,000) Zones. (d) The proposed project is a request for a one year extension of time (expiring January 23, 1998) in order to construct a 17,867 square foot two-story professional office building. (e) The proposed extension of time and approved professional office building is consistent with the General Plan land use designation of General Commercial '(C). The General Plan land use designation of General Commercial provides for a variety of land uses including commercial retail, office, and services Therefore, the extension of time approval which will allow additional time to begin the project's construction is consistent with the General Plan. (f) 'The proposed extension of time and approved professional office building is consistent with the Restricted Business (C-1) Zone. Currently and at the -time of the project's original approval, business or professional.offices are permitted in the referenced zone by -right. (g) The design and layout of the proposed development is consistent with the applicable elements of the City's General Plan, design guidelines of the appropriate district, and any adopted architectural criteria for specialized areas, such as designated historic districts, theme areas, specific'.plans, community plans, boulevard or planned development. The extension of time does no * t physically alter the previously approved project which is consistent with the adopted General Plan, the site's zoning and Development Review Ordinaftce No. 5 (1990). (h) The design'and layout of the proposed development will not unreasonable interfere with the use and enjoyment of neighboring existing or future developments, and.will not create traffic or pedestrian hazards. The extension of time does not physically alter the previously approved project that required a traffic study reviewed and approved by the Planning Commission on January 23, 1995. Furthermore, the time extension does not generate new impacts or additional mitigation measures. 5-. 40g� (i) The architectural design of the proposed develd)%e is compatible with the characters of the surroundT neighborhood and will maintain the harmonious, orderly and attractive development contemplated by Chapter 22.72 of Development Review Ordinance No. 5 (1990). The January 23, 1995 Planning Commission approval found the project to be consistent with Chapter 22.72 of Development Review Ordinance No. 5 (1990). Since the extension of time does not physically alter the approved project, the development's architectural design is still compatible with the character of the surrounding neighborhood and in compliance with Chapter 22.72 of Development Review Ordinance No. 5 (1990). (j) The design of the proposed development will provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of materials, texture, and color that will remain aesthetically appealing and will retain a reasonably adequate level of maintenance. The extension of time will not alter the proposed development in any way. The project, with the time extension approval, is still required to comply with Exhibit "All which includes site plan, floor plan, architectural.elevations and materials/co"lors board approved by the Planning Commission. Additionally, the Commission's approval of the project found that the development would provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of materials, texture, and color that will remain aesthetically appealing and will retain a reasonably adequate level of maintenance. (k) The proposed development will not be detrimental to the public health, safety, orwelfareor materially. injurious to the properties or improvements in the vicinity. The extension of time does not alter the approved project in any way. Therefore, approval of the time extension does not generate new impacts or additional mitigation measures. Based on the findings and conclusions set forth above, the Planning Commission hereby approves the Application subject to the following conditions: (a) The project shall substantially conform to site plan, floor plan, elevations and colors/mater-ials board collectively labeled as Exhibit "All dated 4 December 12, 1995, as submitted and approvedP4the -, Planning Commission. (b) The site shall be maintained in a condition*which is free of debris both during and after the construction, addition, or implementation of the entitlement granted herein. The removal of all trash, debris, and refuse, whether during or subsequent to construction shall'be done only by the property owner, applicant or by a duly permitted waste contractor, who has been authorized by the City to provide collection, transportation, and disposal of solid waste from residential, commercial, construction, and industrial areas, within the City. It shall be the applicant's obligation to insure that the waste contractor. utilized has obtained permits from the City of Diamond Bar to provide such services. (c) The applicant shall comply with Planning and Zoning, and Building and Safety Division's and Public Works Department's requirements. (d) This grant is valid for one year from January 23, 1997 to January 23, 1998 and shall be exercised (i.e., construction started) within that period or the grant shall expire. (e) All conditions of approval for Development Review No. 94-2 pursuant to Resolution No. 95-3 shall remain in full force and effect unless amended as part of this action. (f) This grant shall not be effective for any purpose until the permittee and owner of the property involved (if other than the permittee) have filed, within fifteen (15) days of approval of this grant, at the City of Diamond Bar community Development Department, their affidavit stating that they are aware of and agree to accept all the conditions of this grant. Further, this grant shall not be effective until the permittee pays remaining city .processing fees. If the Department of Fish and Game determines that Fish and Game Code Section 711.4 applies to the .approval of this project, then the applicant shall remit to the City, within five days of this grant's approval, a cashier's check of $25.00 for a documentary handling fee in connection with Fish and Game Code requirements. Furthermore, if this ' project is not exempt from a filing fee imposed because the project has more than a deminimis impact on fish and wildlife, the applicant shall also pay to the Department of Fish and Game any such fee and any fine which the Department determines to be owed. 9 The Planning Commission shall: t (a) Certify to the adoption of this Resolution; and (b) Forthwith transmit a certified copy of this Resolution, by certified mail, Gary Miller, G. Miller -Development -Co., P.O. Box 4.682, Diamond Bar, CA 91765. APPROVED AND ADOPTED THIS 28TH DAY OF OCTOBER, 1996, BY THE PLANNING COMMISSION OF THE CITY OF DIAMOND BAR. 19W Mike'Goldenberg, chairman I, James DeStefano, Planning Commission Secretary, do hereby certify that the foregoing Resolution was duly introduced, passed, and adopted by the Planning Commission of the City of Diamond Bar, at a regular meeting of the Planning Commission held on the 28th day of October, 1996, by the following vote: AYES: Commissioners NOES: Commissioners ABSENT: Commissioners ABSTAIN: Commissioners 419we James DeStefano, Secretary E. A.. PC RESOLUTION NO. 95-3 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF DIAMOND BAR APPROVING DEVELOPMENT REVIEW NO. 94-2 AN APPLICATION FOR THE CONI�UBNDTNG CTIO176QOSTORY PROFESSIONAL OFFG ON A VACANT SITE M LOCATED AT 21008 LYCOMING STREET, DIM OND BAR, CALIFORNIA, AND MAKING FINDINGS IN SUPPORT THEREOF. Recitals. (i) Terry Adldnson, acting, as the agent for G. Miller Development, 721 Brea Canyon Road, Diamond Bar) CA 91789 has heretofore filed an application as described above in the title of this Resolution. Hereinafter in this Re -solution, the, project located at 2100.8 Lycomina Street, Diamond Bar, California, shall be referred to as "the Application". (ii) On April 18, 1989, the City of Diamond Bar was established as a duly organized municipal corporation of the -state of California. On said date, pursuant to the t) City requirements of the. California Government Code Section 57376, Title ' 21 and 22,. the C* Council of the City of Diamond Bar adopted its Ordinance- No. 14, thereby adopting the, Los Angeles County Code as the, ordinances of the City of Diamond Bar. Title. 21 and 22 of the Angeles Los Angeles now LOS Angeles County Code contains the Development Code of the County of Z� 4:) - the subject application, within the currently applicable'to development applications, including City of Diamond Bar. (iii) The City of Diamond Bar lacks an operative General Plan. Action was taken on this application, as to consistency to the proposed General Plan, pursuant to the terms t e ms and provisions of an office of Planning and Research Extension of Time granted pursuant to California Government code Section 65360 and 65361(a). (iv) On December 12, 1994 the Planning Commission of the City of Diamond Bax conducted a duly noticed public hearing on the application and concluded said public hearing on January 23, 1995. (V) . All legal prerequisites to the adoption of this Resolution have occurred. B. Resolution• HERE NOW, THEREFORE, it is found determined and resolved by the Planning Commission of the City of Diamond Bar as follows: The Planning Commission hereby specifically finds that all of the facts set forth in the, Recitals, Part A, of this Resolution are true and correct. C:1LETTE;ULRS?0R T51DX94--7A- XPT 2. The Planning Commission, hereby finds that the initial study review prepared by the City of Diamond Bar and Mitigated Negative Declaration No. 94-6 has been .µ „ prepared in compliance with the California Environmental Quality, Act of 1970, as amended, and the Guidelines promulgated thereunder, and, - further said negative declaration reflects the independent judgement of the City of Diamond Bar; 3. The Planning Commission hereby specifically finds and determines that, having considered the record as a whole including the findings set forth below, and changes and alterations which have been incorporated into and conditioned upon the proposed project set forth in the application, there is no evidence before the Planning Commission that the project proposed herein will have the potential of an adverse effect on wild life resources or the habitat upon which the wildlife depends. Based upon substantial evidence, the Commission hereby rebuts the presumption of adverse effects contained in Section 753.5 (d) of Title 14 of the California Code of Regulations. 4. Based on the substantial evidence presented to the Planning Commission during the above -referenced public hearing on December 12, 1994 and concluded on January 23, 1995, including written and oral staff reports, together with public 'testimony, and in conformance with OPR Extension of Time, the Planning Commission hereby specifically finds as follows: 1. The subject property is located at 21008 Lycoming Street on the - southeast corner of the intersection of Brea Canyon Road and ' Lycoming Street, an area with a mixed concentration of commercial development bordered by multi -family and single family development; 2. The property is located in Zone C -1 -BE and allows this use as a right of zone. The project site is approximately 42,026 sq. ft. in size and is currently vacant. 3. The applicant's request is for the construction of a two story office building approximately 17,867 sq. ft. in size. 4. The surrounding properties are developed with commercial and light industrial manufacturing uses to the north and northwest, a day care center and single family residences to the west, single family and multi -family development to the east and northeast and a recreational vehicle storage to the south of the project site. 5. Notification of the public hearing for this project has been made in the San Gabriel Valley Tribune and the Inland Valley Daily C:tLEM95!RGPORTSWR94-2d•X_FT 2 Bulletin on November 21, 1994. There are 167 property owners within 500 feet of the project site who were notified by mail. 6. The design and layout of the proposed development is consistent with the applicable elements of the City's contemplated General -Plan, and design guidelines and architectural criteria of the appropriate district; 7, The design and layout of the proposed development will not unreasonably interfere with the use and enjoyment of the neighboring existing and future developments, and will not create traffic or pedestrian hazards; 8. The arcl,.i.tectural design of the proposed residence is compatible with the character of the surrounding neighborhood and will maintain the harmonious, orderly, and attractive development contemplated by this Chapter and the contemplated General Plan of the City; 9. The design of the proposed development would provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of materials, texture and color that will remain aesthetically appealing and will retain a reasonably adequate level of maintenance; 10. The proposed use will not be detrimental to the public health, safety or welfare or materially injurious- to the properties or im.- provements in the vicinity. 5. Based on the findings and conclusions set forth in paragraphs 1, 2, 3, and 4 above, the Planning Commission hereby approves the application subject to the following restrictions as to use: 1. This permit shall not be effective for any purpose until a duly authorized representative of the owner of the property involved has filed, at the office of Diamond Bar Community Development Department, an affidavit stating that the applicant is aware of, and accepts all the conditions of this permit. C:I L rTTERS',REPOR TSIDR94-24-RP? 2. That three copies of the revised plot plan and marked Exhibit "A" and conforming to such of the following conditions as can shown on a plan, shall be submitted for approval of the Community Development Director. The property shall thereafter be developed and maintained in substantial conformance with the 3 approved plans. 3. This grant is valid for two years and must 'be exercised (i.e. construction started) within that Period- or this grant will expire. A one year extension may be requested in writing and submitted to the City 30 days prior to -the expiration date. 4. All construction materials must comply with the materials board approved by the Planning Commission and marked as Exhibit "A- 1" and dated January 23, 1995. 5. Notwithstanding any previous Subsection of this Resolution, if the Department of Fish and Game requires payment of a fee pursuant to Section 711.4 of the Fish and Game Code, payment thereof shall be made by the applicant prior to the issuance of any building permit or any other entitlement. 6. The property shall be maintained in a condition which is free of debris both during and after the construction, addition, or implementation of the entitlements granted herein. The removal of all trash, debris, and refuse, whether during or subsequent to construction, shall be done only by the property owner, applicant or by a duly permitted waste contractor who has been authorized by the City to provide collection, transportation, and disposal of solid waste from residential, commercial, construction, and industrial areas within the City. It shall be the. applicant's obligation to insure that the waste contractor utilized has obtained permits from the City of Diamond Bar to provide such services. 7. The applicant must comply with all federal, state, Zone G1 -BE, Engineering Department, and Building and Safety Department requirements unless otherwise amended as a part of this grant. 8. The applicant must submit a revised landscape plan for approval Of the Community Development Director prior to issuance of building permits. 9. All drive aisles shall be marked as Fire Lanes and all compact parking stalls shall be marked as "Compact". 10. As proposed project is within Zone AO as designated on the FEMA Flood Insurance Rate blap, the applicant shall assure that all earthwork and construction complies with Ordinance No. 30 (1989) of the City adopting Flood Damage Prevention C:l1�TTERSIREPORT5lDR9-F-2A.RPT 4 Regulations. Prior to the issuance of any grading or building permits the applicant shall obtain from the City a Development permit as required by said ordinance. Tj 11. Applicant shallobtain permission from the Los Angeles County Sanitation Districts to directly connect building sewers to Sanitation District No. 21 trunk sewer. If permission to connect is not obtained, applicant shall prepare plans to the satisfaction of the City Engineer and construct public sanitary sewer to extend existing public sanitary sewer to serve the project prior to occupancy of building. 12. Applicant shall obtain permission from the'Us Angeles County Flood Control District for access, drivewaysParking and other improvements as proposed over District easement.. 13. Applicant shall. install street lights on Marbelite poles along the frontages of the project to the satisfaction of the City Engineer. 14. Applicant shall install street trees along the frontages of the project to the satisfaction of the City Engineer. 15. Applicant shall submit to the City for processing, a lot line adjustment application, in substantial conformance with Exhibit "A-2", prior to issuance of -building permits. The applicant shall record the approved lot line adjustment with the County of Los Angeles and provide to the City verification thereof, prior to issuance of a building permit. 16. The project shall be designed with commercial driveway approaches -with 'a minimum 30 ft. width. in order to accommodate proposed traffic flow. 17. Applicant shall comply with the recommended mitigation measures identified in the Traffic Impact Analysis Addendum dated January, 1995, and the Mitigated Negative Declaration No. It) 94-6, to the satisfaction of the City Engineer. 4 18. The applicant shall work cooperatively with the adjacent property owner in order to obtain, as feasible, appropriate agreements related to reciprocal vehicular' access and parking in conjunction with future development of the southerly adjacent parcel, prior to issuance of building permits, to the satisfacdo'n of the City, Engineer. 5 C.-(�7-rL;Z5aE?OR TSWX94-2A. RPT . 19. 20. 21 That all grading, drainage plans and wall plans shall conform to all City standards or as amended by this action. The office building is restricted to non-medical uses in order for the project to conform to the parking standards. The applicant shall construct landscaped berms on the perimeter of the parking areas abutting the public streets. 22. The project shall be conditioned to include a Trip ReductiordTravel Demand Management Plan ('MTDM) program sufficient to comply with the CMP program, to the satisfaction of the City Engineer. 23. The project shall provide traffic mitigation consistent with the CMP sufficient to account for a minimum of 293 development points as determined by the L:A. County CMP program guidelines, to the satisfaction of the City Engineer. The Planning Commission shall: (a) Certify to the adoption of this Resolution; and (b) Forthwith transmit a certified copy of this Resolution, to Terry Adkinson and G. Miller Development at the addresses as set forth on the applica- . tion. APPROVED AND ADOPTED THIS THE 23RD D OF JANUARY, 1995 BY THE PLANNING COMMISSION OF THE CITY IAS BAR. BY: / id Meyer, airman I, James DeStefano, Secretary of the Planning Commission of the City of Diamond Bar, do hereby certify that the foregoing Resolution was duly introduced, passed, and adopted, at a regular meeting of the Planning Commission held on the 23rd day of January, 1995, by the following vote -to -wit: AYES: [COMMISSIONERS:) NOES: [COMMISSIONERS:] ABSTAIN:. [COMMISSIONERS:] Flamenbaum, Fong, Huff, Schad, and Meyer ABSENT: [COMMISSIONERS* Attest: James DeSte ano, Secretary AGENDA ITEM NUMBER: REPORT DATE: MEETING DATE: CASE/FILE NUMBER: APPLICATION REQUEST: PROPERTY LOCATION: APPLICANT: PROPERTY 61MER: BACKGROUND: City of Diamond Bar. PLANNING COMMISSION Staff Report, 5.1 December 5, 1994 December 12, 1994 Development Review No. 94-2 A request to construct an 18,110 square foot, two-story office/professional building. The 40,496 square foot project site is undeveloped and is located at the ,southeast corner of Brea Canyon Road and Lycoming Street in Zone C- ! -BE. The project additionally proposes a freestanding 6 ft. high monument sign at on the Brea Canyon Road frontage. 21008 Lycoming St. G. Miller Development 721 Brea Canyon Road #7 Diamond Bar, CA.,9176.5 Same In 1990 the subject site was rezoned from R-1: (Single Family Residence Zone) to C-1 (Restricted Business Zone) . The property is currently vacant. Formerly, the property had been developed with a single family residence. Abutting the -site from the east to north lies a Los Angeles County Flood Control Channel, to the south a recreation vehicle storage site which ' is located adjacent to the SR 60 Freeway, to the north a convenience store and a condominium project, and to the west single family residential development, a day - care center, and a variety of miscellaneous industrial/manufacturing type uses. The proposed project is a request for a.18,110 sq. ft. two story office/professional building on an irregularly shaped site. A portion of the project, approximately 4,700 sq. ft., is covered by an Los Angeles County Flood Control Easement and lies outside the C. ILE7TERSIREFORTSIDR94-IRPT I property boundary. The use is allowed within the zone subject to approval of the Development Review. The considerations for approval of the project focus - on compatibility of the project to the surrounding environment, conformity of the project to the draft General Plan and development standards; and quality of design and materials. ANALYSIS: The project is designed with an orientation toward the interior of the site rather than to Brea Canyon Road. The advantage of this design allows for a substantial swath of landscaping along the Brea Canyon Road frontage thereby reducing the perception.of the mass of the building. The. structure will be located at distances ranging from 10 ft. to 20 ft. behind the sidewalk. An extensive ensive mixture of plants including shrubs and trees are proposed long this rear elevation. The applicant is providing approximately 25 percent landscaping throughout the site. *The project proposes a lot coverage ratio of 69 percent and a FAR of .56. There is an entry statement provided at the entries to the project in the form of 42 in. high stucco walls that screen the parking area from the street with assistance of landscaping. A six foot high block wall is proposed along the extreme southeast property line as an extension of the existing wall. All lighting will be designed so as to provide a minimum of one candlefoot over the site while minimizing light spillage off- site. . Landscaping for the project is quite extensive and is intended to give the project the appearance of instant maturity. For example, the landscaping along Brea Canyon Road features four 36 in. box Queen Palms and three 25 ft. tall Mexican Fan Palms in addition to extensive shrubbery and ground cover. The parking area will be encased by Yew Pines and Dwarf Salmon *along the southerly perimeter and Mexican Fan Palms, Loquats and various shrubs at the easterly boundary along the flood channel'. The interior area of the site, will be planted with a variety of trees and shrubs in sizes and quantities sufficient to detract from the visibility of the hardscane. The site provides for two points of ingress and egress, one on Brea Canyon Road, a four lane major arterial, and the other on Lycoming Street, a secondary road. All drive aisles conform'to the L.A. County standard of 26 feet. The project is designed with a shared access easement to afford future inter -parcel circulation for any future development. The subject project is designed'with parking spaces within this easement. The easement enters the site from the south and follows the,flood channel to the Lycomimg Street access. Staff recommends that the easement be recorded with the County Recorder upon approval of the City once the instrument is crafted. Q1LE=RSUZEPORTSLDR_44-2.Rn 2 The parking standard stipulates a parking ratio of one space per 400 sq. ft. of retail/commercial office space. Additionally, the code requires one space per 250 sq. ft. of professional /medical office space. The minimum requirement for this project is 45 spaces if no professional /medical uses are located within the structure. Fifty .park ' ing spaces have been proposed on site and there is no on -street parking on Brea Canyon Road or Lycoming Street. Landscaping has been distributed in islands to break up the harshness of the hardscape. Thirty one spaces are standard size (18.5 ft. X 8 ft.), 16 are compact stalls (8 ft. X 8 ft.) and ,three handicapped spaces are proposed and one of these spaces must accommodate van accessibility requirements. The site is currently vacant and the construction of the project will generate traffic volumes in excess of the previous land use (a single family residence). The increase will not however have a significant adverse impact. The traffic report prepared for more intensive but similar project identifies a projection of approximately 1,500 trips per day. For this project the trip `generation will be less. The report identified mitigation measures which will assist in reducing the impacts associated with the project. Included as mitigation measures are restriping Lycoming at the approaches to Brea Canyon Road to provide a dual left turn lane into the project and at the intersection -and to prohibit parking on Lycoming Street (currently in effect). The building orientation. is toward the interior of the site but the appearance the structure from all sides displays consistency of theme and style. The design of the two floor office building features a French architectural style and a height of 35 feet. The applicant has proposed the primary exterior finish as Bisque stucco complemented by a darker Balsa accent. Additional channel accents are incorporated over areas of the first floor in the central .portion of the building and the corners. The project offers second floor access to the outside via balconies from all elevations and is encased by the precast concrete balustrades. Cloud White trim is proposed for the fascia, trim, qudins and second floor precast concrete balustrades. The material proposed for the 12:12 roof is a typical flat concrete tile of dark adobe, adobe, avante light grey and sand topped with a painted sheet metal roof cap. Perched atop the 'protruding roof f elements, the project proposes ornamentations. The windows of the project will display painted sheet metal caps above and typical,stucco finish on the remaining perimeter. The applicant has chosen to place the air conditioning and heating equipment on the roof in a well area that, in addition to the parapet,'conceals the equipment from view. Signage for the project is proposed for the corner of the site closest to the intersection of Brea Canyon Road and Lycoming Street. The freestanding sign is designed with a maximum height of 6 -ft. The sign will display 'the "BREA CANYON PLAZA" center identification in 12 in. high illuminated reverse pan channel letters. The stucco monument structure will have a 10 ft. long CALUTERSIREPORTSM94-2-RPT 3 split face in order to maximize exposure to commuters in all directions. The sign features architectural treatments which include a central 6 ft. capped stucco pilaster as well as a 42 in. pilaster with channels, on the perimeter of each side. No other signage is requested as a part of this application. Development Standards Proposed Project Status 1. Setbacks - Of side yard 101, 201 front yard 201 Of rear yard 551 2. Height 13 times buildable area 2 stories, 351 3. Parking - 1 space per 400 sq. ft. 45 spaces 4. Basement/Cellar N/A N/A NOTICE OF PUBLIC HEARING: This item has been advertised in San Gabriel Valley Daily Tribune and Inland Valley Daily Bulletin on November 21, 1994. Public notices were mailed to 167 property owners in a 500 ft. radius of the project 21 days prior to the public hearing. Staff has reviewed environmental information submitted as a part of this project and has prepared a Negative Declaration. RECOMMENDATIONS: I The staff recommends that the Planning Commission open the public hearing and receive testimony and approve the Resolution of Approval with the attached conditions. MANDATORY FINDINGS: 1. The. design and layout of the proposed. development will not unreasonably interfere with the use and enjoyment of the neighboring existing and.future developments, and will not create traffic or pedestrians hazards; 2. The architectural design of the proposed residence is compatible with the character of the surrounding neighborhood and will maintain the harmonious, orderly, and attractive de- velopment contemplated by this Chapter and the contemplated General Plan of the City; 3. The design of the proposed development would , provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of CAUMRSUMPORTSIDR-04-2. Rn 4 materials, texture and color that.will remain aesthetically appealing and will retain a reasonably adequate level of maintenance; 4. The proposed use will not be detrimental to the public health, safety or welfare or materially injurious to the properties or improvements in the vicinity. C. V-RnWRS!RKPOR7'SIDR94-2.R" AGENDA ITEM NUMBER: REPORT DATE: MEETING DATE: CASE/FILE NUMBER: APPLICATION REQUEST: PROPERTY LOCATION: APPLICANT: PROPERTY OWNER: BACKGROUND: City of Diamond Bar PLANNING COMMISSION Staff Report 4.1 January 19, 1995 January 23, 1995 Development Review No. 94-2 A request - to construct an 18,110 square foot, two-story office/professional building. The 40,496 square foot project site is undeveloped and is located at the southeast corner of Brea Canyon Road and Lycoming Street in -Zone C- 1 -BE. The project additionally proposes a freestanding 6 ft. high monument sign. 21008 Lycoming St. G. Miller Development 721 Brea Canyon Road #7 Diamond Bar, CA. 91765 Same The Planning Commission conducted public hearing on the project December 12, 1994. At the conclusion of the public testimony, the Planning commission directed staff to work with the applicant to provide additional information concerning an update to the traffic report, resolution to the parking provisions on and off-site, and future access between the adjacent commercial properties. In the interim, the applicant has,provided staff with an addendum to the traffic *impact analysis that addresses the submitted project with updated projections based on current conditions. The addendum also addresses inter -parcel circulation to the extent possible at the present time. the applicant has also re -designed ' the office building on the southern elevation, reducing the gross square footage and reoriented the parking stalls in the immediate area of the building. CAU=RSUZEP0RT5tDR94-2A.RPT 1 ANALYSIS: The applicant has submitted modification's to the previous design that respond to circulation and parking issues. The modifications include a redesign of the building and floor plan, relocation of parking spaces on the south elevation, replacement of the entry walls with a landscape berm and a proposed modification to the lot line along the eastern and a portion of the southern boundary. The building modification provides a better visual complement for northbound Brea Canyon Road travelers. The site will now provide landscaping and the architecture of the building as the first visual elements of the site as opposed to block walls and automobiles. ParkinglCirculation The building modifications have reduced the gross square footage by slightly less than 300 square feet. The modification proposes to relocate the colonnade to the west. This modification has provided the opportunity to relocate the four parking spaces north of the Brea Canyon Road entrance toward the interior of the site and away from the perimeter of the site. The relocation of the parking serves to reduce the potential impacts related to the potential traffic hazards of cars backing into the driveway approach and drive aisle from both sides. Moving the spaces further into the interior of the site allows for better circulation. The number of parking stalls for the project have been increased to 51 overall. Forty-six (46) of the stalls are provided on the subject site, in conformance with the minimum requirement (for general retail/commercial). Staff recommends that a condition which restricts the project from medical uses be placed on the project to maintain the project's integrity. Five (5) additional stalls are provided as a result of an informal agreement between the adjacent property owners. The five off-site spaces are located at the extreme eastern portion of the project at the point where the L.A.C.F.C.D. easement intersects the abutting properties. The applicants request that no easements or other encumbrances be placed on this portion of the project because of the potential negative financial impacts at the time OM any sales transactions may transpire. The parking area has undergone an additional revision. The trash enclosure has been moved.forward to the north and reduced in size in response to the proposed lo ' t line adjustment. The 61 tall concrete block enclosure will allow pedestrian access from the east and will feature a 51611 wide planter on the west facing elevation. The gates for the enclosure swing open toward the parking area but within the confines of the curb. Staff recommends that a decorative iron face be incorporated into its design. C. LLETURSUMPORTSIDR94-2A.Rn 2 The applicant prepared an addendum to the traffic report. The City has reviewed the addendum report and found it adequately addresses the traffic impact projections associated with the development of this, site. The• report found that the project will have a negligible effect on. off-site circulation. The analysis of the addendum generated conditions related to the City's requirement to ensure the traffic report format conform to the County's Congestion Management Plan (CMP). The internal and future- inter -parcel circulation have been reviewed from the aspect of safety and efficiency. No concerns were generated subsequent to the reconfiguration of the parking stalls at the•Brea Canyon Road entrance (as stated above). Access and inter -parcel circulation was the remaining issue addressed. Analysis of the plan indicates that the project provides a 20 ft. wide access at the point of the proposed future shared access. This may create problems' for circulation related to truck traffic. Staff has developed two scenarios to address this potential situation. In one alternative, the access could be increased to a minimum of 24 ft. with the loss of one parking spare as the planter is modified to meet this modification upon development of the shared access. The other alternative, raised during the public hearing, calls for direct access from the north/south drive aisle into the adjacent site. Creation of this access would cost the subject site four parking spaces as access is gained to the abutting site. With improvements for vehicular and pedestrian access, guarantees for in-kind replacement on the abutting parcel would need to be included within the covenants created for the reciprocal access agreement. Lot Line Adjustment The applicant is proposing a lot line adjustment to adjust the irregular property lines that currently exist on-site. The lot line adjustment involves approximately 1,.500 sq. . ft. with the office building site gaining the majority of the square footage. The adjustment includes the eastern boundary in addition to the south property line.. The southerly adjustment will transfer the existing well site to the southerly property owner thereby aligning the property with straight boundary. The eastern adjustment will also transform the irregularly shaped boundary into a straight north/south boundary ensuring the office site the 46 required parking spaces. Development Standards proposed Project Status 1. Setbacks - of side yard 10, .201 front yard 20' 01 rear yard 551 2. Height - 13 times buildable area 2 stories, 351 C.-ILET7'ERSLKEPORTSI DR-94-2A.RPT 3. Parking - 1 space per 400 sq. ft. 45 spaces (minimum) NOTICE OF PUBLIC HEARING: This__itemhas been advertised in San-Gabr-iel Valley Daily Tribune and Inland Valley Daily Bulletin on November 21, 1994. Public notices were mailed to 167 property owners in a 500 ft. radius of the project 21 days prior to the public hearing. ENVIRONMENTAL ASSESSMENT: Staff has reviewed environ-mental.information submitted as s a part of this project and has prepared a Negative Declaration. RECOMMENDATIONS: The staff recommends that the Planning Commission re -open the public hearing and receive testimony and adopt the Resolution of Approval with the attached conditions. MANDATORY FINDINGS: 1. The design and layout of the proposed development will not unreasonably interfere with the use and enjoyment of the neighboring existing and future developments, and will not create traffic or pedestrians hazards; 2. The architectural design- of the proposed residence is compatible with the character of the surrounding neighborhood and will maintain the harmonious, orderly, and attractive de- velopment contemplated by this Chapter and the contemplated General Plan of the City; 3.. The design of the proposed development would provide a desirable environment for its occupants and visiting public as well as its neighbors through good aesthetic use of materials, texture and color that will remain aesthetically appealing and will retain a reasonably adequate level of .maintenance; 4. The proposed use will not be detrimental to the public health, safety or welfare or materially injurious to the properties or improvements in the vicinity. Attachments: Development Plans Staff Report Dated December 12, 1994 Traffic Report Addendum Resolution With Findings of Fact Lot Line Adjustment Exhibit, C.1LEn*ER51REP0RTS1Dk9-1-V..RPT 4 1 i j a ` 0 =S7 ltif2', Igo/ �-�` 6 9+ •.iieEi SdE2 `e j Jz� l�` it ii i y N l �,V; t 3It i Ilk • � , t r , r 7 'r i� •r 11,111 r • , t • }� 1=i! f• 1) r) r +1t > } 1 i (1 , ! 1 'I.1 r'1 1 �,) 1) i11)111E } � It t `i1t,, t i, it r 1 t '}) j, t t, )"� t l Ih u, r f, it )i i z. jli �i jf ! 1) ); t ?It ti 11 1� �� +111 1;i�f 1• 1111;11' iii) j3 Iii ` 11 �!• i'ii`��` 1%`1 11 41i 11;' s lit r ` , r rt r , i )1i1j1'' If 1 11 ii, )t 1 ,)� j,;,.• t) i s 5 �, — 0 1 I� , , • i et1 �) Ali, 7 `► ►1;.► il)1• 1.) 1. �, 111.1 t ), ,) r1 r,, s ' ; 1 1 jt tirjc►j116 , i i! ;1�1Ei !:;,` I! }!I R`ts !'J1 li•)7 1i 1 r3 t s;; f �, ;? i) ; .' t ;11 iE 1 i�11 j ►, t!•1 1111 : I ! �)11'!1j t� ii =r.. Fla BREA CANYON PLAZA kr C7. MIl1.ER &%viopmerAG M. rr 'MW [xco�yc sz. po box 4M2 dWnond bar, CA PER o J} 04V40%D &r.R. CA91763 (9Q9) 59"966 • ' it 't;+ L }'Y7Sd 'S �� 44� 141�1 LI Cl 0 V'J' id I :',e OV 'A' . d IX • � � -_. � i i ( �: III � 4 k. di ON PLAZA G. rvDLLER I 21n_ bat 4682 &an�A bar, cA _��V Fr,�TFAI A 1EMNE S-0 BREA CANYON PLA7-A (.1 KLLER 6-ck"--m- 121om ).ycr^vNel ST. pa b- 4682 dlan� b&, CA- zWUIIAFLCA9J765 ------------L9()91594-6966 mom V Ave, L L ERDEVELOPMENT CO. 2., P.O. BOX 4682, DIAMOND BAR, CALIF. 91765 September 13, 1996 Mr. James DeStefano Director of Community Development City of Diam. orid Bar 21660 E. Copley Drive, Suite 190 Diamond Bar, California 91765 Dear Mr. DeStefano: '96 SFP 17 P 4 '12 As you are aware, -PC Resolution No. 95-3 an application for the construction of a 17,867 sq.ft. two story professional office building located at 21008 Lycoming Street, is scheduled to expire in the near future. I am hereby requesting that the approval be extended. Currently, we are completing the lot -line adjustment and construction drawings for the project. As you are aware, the down turn we have experienced in recent years in i the Construction Industry has caused us to delay our start date for the professional office building. However, it is our opinion that the market is experiencing a recovery and we will be ready to commence construction in the near future. Your anticipated cooperation is appreciated. Sincerely, ,_,,-Gary G. Miller Reb- on -2n, IVI y and is ready f0t sc,anifing File reIrk iew y ird b n-10 It 3 1 - and is read for clestruchion' by City Clerk