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Economic Development Division
Report to the City Council
Merger of the Northwest
Redevelopment Projects, and
Amendment No. 4 to the Villa-Parke Redevelopment Plan
October 25, 2010
2
Economic Development Division
Merger Action
• Approve Resolution adopting Negative Declaration.
• Postpone action to allow for additional analysis on the possible flow of tax increment dollars.
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Economic Development Division
Report to the City Council
• Prior to amending a Redevelopment Plan, California Community Redevelopment Law (CCRL) requires the preparation of a Report to City Council.
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Economic Development Division
Purpose of the Report
• Documents blight conditions on a parcel basis.
• Identifies projects and programs designed to eliminate blight.
• Proposes an increase to the Villa-Parke tax increment cap commensurate with projects and programs.
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Economic Development Division
Findings of the Report
• Analyzed all parcels (1,214) in the five N.W. Redevelopment Project Areas.
• 533 parcels exhibited at least one physical condition of blight.
• All parcels exhibited at least one economic condition of blight.
• CCRL states that the mere existence of blighted conditions is not sufficient to justify an amendment to a redevelopment area.
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Economic Development Division
How Much Blight is Enough?
• Per CCRL the area must have more than just physical and economic blight to justify amending the tax increment cap.
• Blight must also be so problematic that it creates special needs that can only be addressed by the use of redevelopment dollars.
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Economic Development Division
Blight Conditions Summary
• Further analysis of the blighted parcels that have significant remaining blight resulted in 89 that meet the CCRL definition as having a severe combination of unsafe or unhealthy conditions.
• 41 of the 89 parcels are located within Villa-Parke Redevelopment Project Area.
• The Report concluded that the significant remaining blight cannot be alleviated unless the Villa-Parke tax increment cap is amended.
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Economic Development Division
Villa-Parke Amendment
• Current cap is $20.4 million.
• Current cap will be reached by end of Calendar Year 2010.
• Cannot collect tax increment once financial cap is reached.
• Propose an increase of $44.6 million resulting in a new cap amount of $65 million.
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Economic Development Division
Cap Amendment
• Necessary to address significant remaining blight.
• After subtracting $16 million mandated expenses, the Commission will receive approximately $28 million for projects and programs.
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Economic Development Division
Projects and Programs
Business Improvement- $11 million> Façade improvements.> Business attraction/retention.> Business rehabilitation
Housing Rehabilitation- $9.7 million> Replacement of Un-permitted
construction.> Replacement of unsafe stairs and decks.> Installation of bollards at gas meters.
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Economic Development Division
Projects and Programs
Infrastructure- $10 million> Reconstruction of streets, curbs,
gutters, sidewalks (as needed).> Streetscape improvements along
Fair Oaks Blvd., Orange Grove Blvd., and Maple St.
> Upgrades to water, sewer, and drainage system throughout (as needed).
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Economic Development Division
Benefits of the Tax Increment Cap Increase
• The Tax Increment Cap Amendment will help the Villa-Parke Project Area, which has the most remaining blight out of the five project areas.
• Without an increase to the Tax Increment Cap, there will not be enough money to address the $30 million plus worth of significant remaining blight.
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Economic Development Division
Conclusion
Staff Recommendation:>Commission to approve the resolution
transmitting the Report to City Council.>Commission and Council to adopt the
Initial Study and Negative Declaration.>Commission and Council to approve a
resolution adopting Amendment No. 4 to the Villa-Parke Redevelopment Plan.
>City Council conduct the first reading of the ordinance for the Villa-Parke Amendment.
>Continue action on the Merger until December 6, 2010.
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Economic Development Division
Sample Blighted Properties
• Liquor store noted by Police Department as source of several crimes (AB)
• Unsafe bars on windows (BAR)
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Economic Development Division
Sample Blighted Properties
• Multiple loose wires (EH)
• Boarded-up windows (BW)
• Unsafe bars on windows (BAR)
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Economic Development Division
Sample Blighted Properties
• Graffiti indicative of high crime (G)
• Electrical hazards (EH)
• Boarded-up windows (BW)
• Unsafe bars on windows (BAR)