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ANNUAL REPORT FISCAL YEAR 2010/11 REDEVELOPMENT AGENCY BOARD MEMBERS L. Dennis Michael, Chairman Sam Spagnolo, Vice‐Chairman William Alexander, Agency Member Chuck Buquet, Agency Member Diane Williams, Agency Member EXECUTIVE STAFF John R. Gillison, Executive Director Linda D. Daniels, Deputy Director

Rancho Cucamonga RDA 2010/2011 Annual Report

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This Annual Report is intended to satisfy the requirements of the California Health and Safety Code, beginning with Section 33080, as it pertains to the activities of the Redevelopment Agency during fiscal year 2008/09. This report summarizes the twenty-seventh complete fiscal year of the Agency's existence and the report will consider the following items: the Agency's activities during the fiscal year 2008/09, which includes a description of the revenues and expenditures of the Agency; a comparison of the achievements of fiscal year 2008/09 with the goals outlined in the Annual Report for fiscal year 2009/10; a work program for fiscal year 2009/10; a description of the Agency's activities affecting housing and displacement; and an independent financial audit report for fiscal year 2008/09.

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Page 1: Rancho Cucamonga RDA 2010/2011 Annual Report

 

 

ANNUAL REPORTFISCAL YEAR 2010/11 

REDEVELOPMENT AGENCY BOARD MEMBERS

L. Dennis Michael, Chairman Sam Spagnolo, Vice‐Chairman 

William Alexander, Agency Member Chuck Buquet, Agency Member Diane Williams, Agency Member 

  

EXECUTIVE STAFF

John R. Gillison, Executive Director Linda D. Daniels, Deputy Director 

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Table of Contents I. Introduction 3 II. Redevelopment Project Area Map 4 III. Fiscal Statement of Activities: Fiscal Year 2010/11 5

A. Commercial and Industrial Economic Enhancement Programs 5 B. Marketing and Promotions 13

C. Capital Improvements 16 D. Workforce Housing 22 E. Workforce Housing Unit Summary 28 F. Property Report 29 G. Fiscal Statement 29 H. Time Limits 30 IV. Comparison of the Actual Achievements of Fiscal Year 2010/11 with the Goals Outlined in the Fiscal Year 2009/10 Annual Report 30 V. Work Program Goals for Fiscal Year 2011/12 34 A. Commercial and Industrial Economic Enhancement Programs 34 B. Marketing and Promotions 37 C. Capital Improvements 38 F. Workforce Housing 40 VI. Audit for Fiscal Year 2010/11 41 VII. Statement of Indebtedness Fiscal Year 2011/12 41

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I. Introduction This Annual Report is intended to satisfy the requirements of the California Health and Safety Code, beginning with Section 33080, as it pertains to the activities of the Redevelopment Agency during fiscal year 2010/11. This report summarizes the twenty-ninth complete fiscal year of the Agency's existence and the report will consider the following items:

• The Agency's activities during fiscal year 2010/11. This discussion includes a description of the revenues and expenditures of the Agency

• A comparison of the achievements of fiscal year 2010/11 with the goals outlined

in the Annual Report for fiscal year 2008/09 • A work program for fiscal year 2011/12 • A description of the Agency's activities affecting housing and displacement • An independent financial audit report for fiscal year 2010/11

The Rancho Cucamonga Redevelopment Agency In 1981, the Rancho Cucamonga City Council established the Redevelopment Agency (Agency) in order to alleviate blight and development barriers in the City. Through the establishment of a Redevelopment Project Area (see map on page 4), the Agency is able to use special legal and financial mechanisms to eliminate blight to improve the economic and physical conditions in designated areas of the City. Although the Agency is a separate legal entity, the City Council serves as the legislative body of the Agency. The Agency staff implements a redevelopment project area that encompasses approximately 8,500 acres. Agency staff also performs general administration for the Redevelopment Agency, coordinating budget and reporting requirements and maintaining the Agency's official records.

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II. Redevelopment Project Area Map

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CITY OF RANCHO CUCAMONGA Redevelopment Project Area

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III. Fiscal Statement of Activities: Fiscal Year 2010/11 Credit Rating Standard & Poor’s Ratings Services assigned it’s A+ rating and stable outlook to the Rancho Cucamonga Redevelopment Agency’s tax allocation bonds. The rating reflects strong growth that has resulted in strong coverage levels and tax base diversification. The outlook remains stable. The “A+“ rating reflects:

• A large and diverse project area encompassing approximately 8,500 acres;

• Strong growth in assessed valuation (AV) coupled with a low volatility ratio;

• Good coverage of debt service; and

• An adequate additional bonds test (ABT) of 1.25 x Maximum Annual Debt Service (MADS).

Major Programs A. Commercial and Industrial Economic Enhancement Programs and Events One of the Agency's primary efforts is to enhance the City's economic base. To do this, the Agency has created a variety of programs designed to address the needs of existing businesses and to facilitate business expansions and attractions. The Redevelopment Agency recognizes the diverse needs of businesses and has, for some time now, adopted an economic development strategy to retain and attract businesses that will strengthen Rancho Cucamonga's economic base and help eliminate blight in the community. During fiscal year 2010/11, approximately 954 new businesses began operations in Rancho Cucamonga. The following is a general description of the Agency's accomplishments regarding its commercial and industrial enhancement programs and events during fiscal year 2010/11.

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• Job Fairs: In October 2010, the Agency partnered with several neighboring communities to implement the 2nd Annual Inland Empire West End Job Fair. This event was developed in response to the growing unemployment rate in the Inland Empire and has increased in size to attract over 100 employers and approximately 3000 job seekers during its second year. The West End Job Fair promotes the concept of “local jobs for local residents,” a message that is consistent with the City’s Healthy RC initiatives that aim to reduce traffic in the Inland Empire and create conditions that contribute to a sustainable environment. Staff is currently working with its West End Partners to implement this much needed event for a third year in a row in October 2011. In addition to its involvement in the West End Job Fair, the Agency has also maintained its partnership with Congressman David Dreier’s office to provide the Road to Employment Job Fair in the spring of each year.

• Business Relocation/Expansion Assistance: During this reporting period, Agency

staff assisted a number of new and existing companies with their relocation, expansion, or consolidation efforts. A partial list of the firms include: o Advantage Adhesives is a manufacturer of custom pressure sensitive

adhesive tapes. This company relocated from the City of Brea to a 26,000sf

COMMERCIAL AND INDUSTRIAL ECONOMIC ENHANCEMENT PROGRAMS AND EVENTS

ECONOMIC DEVELOPMENT PROGRAMS JOBS SUPPORTED

Inland Empire West End Job Fair 2,000

Business Relocation/Expansion Assistance 495

Small Business Development Center 2

Third Party Electrical Certification Program 60

Victoria Gardens 3,500

TOTAL 6,057

ECONOMIC DEVELOPMENT EVENTS NUMBER OF

PARTICIPANTS

International Trade Latin American Conference 75

Business Appreciation Week 350

International Council of Shopping Centers (ICSC) Western Division Conference 15,000

National Association of Office and Industrial Properties Bus Tour 250

TOTAL 15,675

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Rancho Cucamonga facility during the first quarter of 2010, and brought an additional 20 new jobs to the community. The Agency coordinated meetings with Advantage Adhesives and other City departments to assist them in meeting the City’s fire, building and development code requirements. Advantage Adhesives also participated in the City’s Third Party Electrical Certification Program, which provided them with a 30% reimbursement on the cost of certifying their electrical equipment to meet the National Electrical Code (NEC) standards.

o Farrell’s Ice Cream Parlour will open their newest location in Rancho

Cucamonga during the fourth quarter of 2011. This restaurant will occupy a 7,400sf vacant restaurant site and will seat approximately 250 guests, with a very large outdoor patio area to accommodate large parties. Agency Staff assisted Farrell’s throughout the development review process and provided employee recruitment assistance by identifying a site where they could hold their employee “auditions” and facilitating their participation in the Inland Empire West End Job Fair. Farrell’s will bring an estimated 200 new jobs to the community.

o Hobby Lobby is a national retailer of arts and crafts supplies and is scheduled

to open its newest location in Rancho Cucamonga in the third quarter of 2011. This retail superstore will occupy a 75,000sf site that was previously occupied by Mervyns, and is expected to bring an estimated 80 new jobs to the community. Agency Staff assisted Hobby Lobby with securing the site for their new store and facilitated meetings with other City departments to assist them in meeting the City’s fire, building and development code requirements.

o Lazy Dog Cafe is an emerging leader in the southern California dining scene

and is scheduled to open its newest location in Rancho Cucamonga in the second quarter of 2012. This full-service restaurant chain is building a brand new 8,175sf site and is expected to bring an estimated 75 new jobs to the community. Agency Staff has assisted Lazy Dog throughout the development review and building permitting process.

o Oporto is an Australian-based fast food restaurant chain that specializes in

fresh grilled chicken burgers. This company opened their first U.S. location in Rancho Cucamonga during the first quarter of 2011, and brought an additional 25 new jobs to the community. Agency Staff assisted Oporto with their employee recruitment process by facilitating their participation in the Inland Empire West End Job Fair, where they were able to hire all of their staff for their grand opening.

o Skin Perfect is a Rancho Cucamonga-based company that specializes in non-

surgical medical procedures and spa services. This company is in the process of expanding from their current location to a larger site in Rancho Cucamonga, and will occupy their new building in the fourth quarter of 2011.

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The Agency has facilitated meetings with Skin Perfect and other City departments to assist them in meeting the City’s fire, building and development code requirements. With this expansion, Skin Perfect is expected to bring an estimated 20 new jobs to the community.

o SpectraSensors is a manufacturer of laser-based process instrumentation

devices that are used by world-class natural gas and petrochemical companies. This expanded their current location in Rancho Cucamonga during the third quarter of 2010. Agency Staff worked with SpectraSensors throughout their expansion process and facilitated meetings with other City departments to assist this company in meeting the City’s fire, building and planning code requirements. The Agency’s assistance played a pivotal role in keeping the company in Rancho Cucamonga, which in turn retained 75 jobs in the community.

• Small Business Development Center (SBDC): In November 1997, the Agency established a contract with the Inland Empire Small Business Development Center (IESBDC) to provide business assistance services to companies and individuals residing in Rancho Cucamonga. This contract allows the Agency to offer free workshops and confidential one-on-one consulting services to both new and existing business owners and operators. During fiscal year 2010/11, the IESBDC provided services to 150 local businesses. In addition, 20 specialty workshops were held with 309 attendees.

• Workforce Development: Through its collaborative participation with other

regional workforce development organizations, the Redevelopment Agency continues to actively engage in projects and events that strengthen and grow the workforce in Rancho Cucamonga and the two-county area. The primary organization the Agency has been involved with is the West-End Workforce Opportunity Resource Collaborative (WE-WORC), a cross-section of representatives from government, education and business. Over the past year, this organization has continued to roll out its CareerQuest.TV website, promoting it to local school districts as an important career-oriented resource for students at the junior high, high school and college level, as well as the general public. Agency staff will continue to work with its WE-WORC partners in FY 2011/12 to create additional opportunities for implementing workforce training programs.

• Third Party Electrical Certification Program: During the reporting fiscal year

2010/11, three companies were assisted through the Agency's Third Party Electrical Certification Program. This program was developed to assist local manufacturers that are expanding or relocating to Rancho Cucamonga in complying with the National Electrical Code requirement for safety certifications. Participating businesses receive a 30% reimbursement for the costs of certifying their electrical equipment.

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• Victoria Gardens: Since its opening in 2004, Victoria Gardens has had a significant economic impact on the community, providing over 3,500 permanent full and part-time jobs for local residents, attracting an estimated 16 million visitors annually, and generating over a half million square feet of additional commercial development on adjacent properties. Initially opening with approximately 70 retail stores and restaurants, the 1.2 million square foot center is now home to over 170 retailers, restaurants and offices. The addition of Bass Pro Shops in 2007 provided another 500 jobs for local residents and draws additional tens of thousands of visitors from a primary market radius of up to 50 miles and a secondary market of up to 100 miles away. This has provided a positive impact on the local economy through additional sales tax revenues and helps bring greater visibility and patronage to Victoria Gardens and local hotels.

• Rancho Advantage Program: During this reporting period, the Agency continued

to implement its Rancho Advantage (Pre-Submittal Assistance) Program, which brings together principal representatives from the Building and Safety, Planning and Engineering Departments to advise new and expanding companies on their individual site-specific building and tenant improvement requirements. This program and has provided an expeditious and cost-effective approach for companies submitting their projects.

• International Trade: In June 2011, Agency staff partnered with the cities of Chino

and Ontario to host the 1st annual Latin American Connection, an international trade and exporting conference that was designed to introduce companies to the world of exporting and provide them with the information and resources they need to export products to Latin American countries. Representatives from Mexico, Argentina and Brazil were available to brief attendees on the product needs and exporting requirements for their countries. Several other organizations were also present to offer trade and exporting assistance, including Americas Integrated; Export-Import Bank; Inland Empire Small Business Development Center; United Parcel Service; U.S. Commercial Service; and legal experts that specialize in international trade activities. This event was very successful and attracted over 75 local manufacturers and distribution companies. Staff will continue to identify ways to expand these programs in FY 2011/12 and explore other world markets that may be good candidates for U.S. exporting.

• Business Appreciation Week: For the past 14 years the Agency has declared

one week in May as Business Appreciation Week. During fiscal year 2010/11,

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Business Appreciation Week was observed from May 2nd – May 6th, 2011. Events for the week included a golf tournament, hosted by the Rancho Cucamonga Chamber of Commerce, and the Agency-hosted Business Appreciation Night featuring a BBQ picnic and a Rancho Cucamonga Quakes baseball game at the Epicenter. Over 350 guests from 14 Rancho Cucamonga-based companies participated in this year’s Business Appreciation Night event. This program is implemented as part of the Agency’s ongoing business retention efforts to convey the City’s appreciation to all Rancho Cucamonga businesses.

• International Council of Shopping

Centers (ICSC): Staff attended the ICSC Western Division Conference in San Diego from September 22-24, 2010, to market the City and promote available retail sites in Rancho Cucamonga. During this two day conference, Agency Staff met with a number of national and regional retailers and developers that are interested in locating in Rancho Cucamonga. This conference is smaller than ICSC RECon Las Vegas, but allows Agency Staff to interface with a more localized contingent of real estate professionals that have expressed interest in building their business base in the southern California region.

• National Association of Office and Industrial Properties (NAIOP): For the past

eight years, the Agency has been an annual sponsor of NAIOP, the leading organization for developers, owners and related professionals in the commercial real estate industry. This sponsorship allows Agency staff to establish relationships with local office and industrial real estate brokers and attend various NAIOP events, including their annual bus tour, mid-year market review and golf tournament. The Agency plans to continue its support of NAIOP in the future.

• Inland Empire Economic Partnership: The Agency continues to support the

efforts of the Inland Empire Economic Partnership to implement and enhance economic development programs within San Bernardino and Riverside counties. Through participation at the board level, as well as regional economic development events and workshops, the Agency will continue to provide resources in FY 2011/12.

• Business Visitation Program: The Agency continues to implement its Business

Visitation Program to establish and maintain contact with the local business community. This program has provided Staff with the opportunity to meet with local business leaders and discuss questions or concerns that a company may be having regarding their business activities. These visitations have also given

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Staff the opportunity to learn more about the products and services that Rancho Cucamonga companies have to offer. Meeting with local businesses can help inform Staff of a company’s planned expansion activities and enable Staff to assist these companies with identifying suitable sites in Rancho Cucamonga if the company is looking to expand to another location. Agency staff met with five businesses during the FY 2010/11 reporting year.

• Rancho Cucamonga Chamber of Commerce: In 1999, the Agency entered into a Cooperative Agreement with the Rancho Cucamonga Chamber of Commerce to help promote economic development, tourism and business retention and attraction in the City. The Agency and the Chamber modified this Agreement in 2009 to include the creation and distribution of a Rancho Cucamonga Lifestyle Magazine. During this reporting period, the first issue of the Lifestyle Magazine was printed and distributed at all of the local hotels and popular visitor attractions. This publication has played an important role in promoting tourism in the City and informing visitors of popular shopping and travel destinations.

• Business Connection Network (BCN): For the past several years, Agency Staff

has attended the Rancho Cucamonga Chamber of Commerce’s weekly networking breakfast meeting to support the Chamber of Commerce and inform local business owners about the various programs and services the Agency offers to assist the local business community. This meeting is widely attended and attracts 75-100 of the area’s top business leaders each week. This ongoing effort has been a successful part of the Agency’s business retention efforts and has helped Staff build valuable relationships with the local business community.

• Directional Guide Sign Program: In

January 2008, the Agency commissioned a cross-departmental taskforce to develop and implement a Directional Guide Sign Program that provides vehicular directional assistance to major destinations in the community. The taskforce created a program policy to determine which destinations would be identified on the signs and hired a signage design firm to create a uniform sign template and assist with the implementation of the program. This program was completed in the 4th quarter of 2010 and has helped make the City more welcoming and accessible to both visitors and residents. The program has also contributed to the City’s Healthy RC sustainability initiatives by identifying direct routes for vehicles to access major destinations in town, which has helped reduce traffic and vehicle pollution in the environment.

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• Economic Development Banner

Program: The Agency supports an ongoing street banner program that was developed in 1999 to encourage community pride and attract customers to the City’s primary retail/commercial corridor along Foothill Boulevard. In FY 2010/11, the banner program was revitalized to include the display of newly designed Route 66-themed banners and holiday-themed banners. The Route 66 seasonal banners are scheduled to display annually during the spring and summer months to coincide with the community’s peak travel season. These banners are part of a series of street improvements that the City has made to help ensure Foothill Blvd. will continue to be an exciting reflection of historic route 66. The holiday-themed banners will display during the fall and winter months and will help draw attention to the City’s retail/commercial corridor during the holiday season.

• Healthy RC Program: During this reporting period, the Agency played an

important role in assisting with the ongoing implementation of a citywide Healthy RC program. The primary emphasis of this program is to promote a Healthy Mind, Body and Earth through the administration of programs, activities and projects that help educate the community on how to be healthier in every aspect of their lives. The Agency’s primary involvement is with the Healthy Earth component of the program, and has contributed to the development of policies and strategies that advance environmental sustainability in the community and in City operations and contribute to the economic vitality of the city.

• Green Business Initiatives: The Agency continued its support of sustainable

efforts in organizations that promote green building, green practices and green jobs. These efforts are consistent with the initiatives of the Healthy RC Program, which promotes the establishment of a Healthy Mind, Body and Earth in Rancho Cucamonga. Through it’s support of green business activities, the Agency has provided resources for efforts like the Green Valley Initiative and the Frontier Project, a 14,000-square-foot, LEED-certified demonstration building, that is a regional resource for businesses, residents, builders and developers. During this reporting period, the Agency also participated in the development of a Green Business Recognition Program, which is designed to showcase and reward Rancho Cucamonga businesses that implement environmentally sound business practices. Businesses that participate in this program are featured in the City’s community newsletter, recognized on the Healthy RC website, recognized at a City Council meeting, and offered a “Healthy RC Green Business” window decal

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for their business. The Agency anticipates further participation and promotion of these programs and efforts in FY 2011/12.

B. Marketing and Promotions The Redevelopment Agency’s primary marketing efforts are focused on the recruitment of businesses that can enhance the local economy and on promoting Rancho Cucamonga as a premier location for living, working, and recreating in the Inland Empire. Due to Rancho Cucamonga’s growing number of amenities, events and activities, the Agency’s marketing efforts also include the promotion of tourism to regional, national, and international visitors.

• Print Advertising: As recommended in the Agency’s Economic Development Strategy, the Agency continued its advertising efforts by placing ads in a number of office, industrial and retail publications during the 2010/11 Fiscal Year. These advertisements resulted in the City receiving many leads from companies who expressed interest in locating their business in Rancho Cucamonga. In an effort to highlight local venues, activities, and amenities in the City, Agency Staff also placed print and online advertisements in both local and regional tourism-related publications, promoting Rancho Cucamonga as a “Gateway to a Southern California Adventure.” As a result of this effort, the Agency received numerous requests for tourism information during this reporting period.

• Fun Book – In 2007, the Agency launched its new Fun Book, a publication that

promotes venues, activities, and events in Rancho Cucamonga. The Fun Book is distributed to select venues in the community, including all of the hotels, Victoria Gardens, the Chamber of Commerce, and the LA/Ontario International Airport. The Fun Book is also mailed to anyone who contacts the Agency to request information about tourism in Rancho Cucamonga. Agency Staff distributed thousands of Fun Books during the FY 2010/11 reporting period, and are currently working on a third update to the publication for the upcoming fiscal year.

• Tourism Marketing Program – During this reporting period, the Agency continued

to implement its comprehensive travel and tourism marketing campaign that incorporates electronic and print advertising; radio advertising and spotlights; and public relations efforts. The Agency also continued to develop its relationship with its neighboring Tourism Partners to help promote and expand tourism in and around Rancho Cucamonga. This multi-faceted marketing campaign was developed to increase the community’s exposure as a travel destination and starting point for extended travel; increase revenues through marketing travel-related businesses; and increase the city’s transit-oriented occupancy levels. Since the onset of this campaign, the Agency has received thousands of requests for tourism information and has experienced increases in the City’s sales tax and transit occupancy tax revenues.

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• Digital Billboard – In 2008 and 2009, the City approved two Relocation and Reconstruction Agreements that permitted the removal of 11 legal non-conforming billboards and the construction of 4 new digital billboards; two of which are located along the I-15 freeway and two which are located along the Foothill Blvd corridor. These agreements allow the Agency to advertise City-sponsored programs and events and post public service messages at no cost. During this reporting period, the City and Agency ran a total of 71 ads on all three billboards, which provided approximately 525,600 annual messages of community events and programs, cultural arts performances, and business and tourism promotional campaigns. These new digital billboards have provided tremendous benefit to the City and Agency and have also helped reduce the level of blight within the Project Area by facilitating the removal of the legal non-conforming billboards.

• Community and Economic Profile: The Agency works with local economist Dr.

John Husing to develop a City profile that is updated annually with current economic data and statistics, which is used for marketing and informational purposes. In 2010, Agency staff partnered with a local graphics design firm to create a new, executive-style template for the profile that includes professionally designed graphics, charts and photographs. This new design is consistent with the Agency’s supplemental marketing materials and provides a uniform and professional appearance for all of the Agency’s informational hand-outs.

• E-mail Marketing: Agency staff continues to utilize its email marketing tools to

reach local business owners, business investors, commercial real estate brokers and visitors. During this reporting period, the Agency provided thousands of subscribers with business and tourism information through the distribution of its FastTrack newsletter, Opportunities real estate bulletins, Travel Profiles and a variety of other special announcements and press releases.

• Redevelopment Agency Website – The Agency launched its official website on

December 1, 2008, offering businesses, residents and Rancho Cucamonga visitors a key resource for finding business, housing, education and tourism-related information in one convenient location. During this reporting period, the Agency’s website has received an average of 136 visitors per day, each viewing an average of 3.5 different web pages per visit. Website visitors are primarily from the U.S. (approximately 95%), with additional visitors coming from Canada, United Kingdom, Spain, Mexico, France, Germany, Philippines and India, respectively. Throughout the year, the Agency has provided ongoing

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enhancements to this important communication tool and will continue to expand its electronic delivery of information in FY 2011/12.

• Inside Rancho Website:

The Inside Rancho website (www.insiderancho.com) continues to be a valuable property site search tool that generates interest in properties that may otherwise be overlooked by potential business investors. This interactive website has received thousands of visits to date, and allows brokers, developers and site selectors to conduct online GIS-based searches quickly and easily. The website includes site-specific demographic information based on 3, 5, 10 and 15-mile radii, and offers features that allow users to export custom reports into Microsoft Word, Excel and PDF files. Agency staff recently added additional map features to the site that incorporate the use of Google maps and street views, which allow users to conduct virtual tours of sites without having to physically drive to each property. These new virtual features are intended to help reduce street traffic and contribute to the development of a healthy and sustainable environment, which is consistent with the City’s Healthy RC program initiatives. During FY 2010/11, staff also created a mobile application that allows users to access Inside Rancho site information from their handheld mobile device.

• Public Relations Program: The Agency's Economic Development Strategic Plan

Update indicated a need to supplement current marketing activities with additional public relations support, targeted at audiences in Los Angeles and Orange counties. Hill and Knowlton, an experienced and qualified media and public relations firm, was selected to provide these services to the Agency. They have been instrumental in assisting with the implementation of the Agency’s marketing plan through the creation of media fact sheets, providing media relations support, promoting new hotel activity and tourism in the City, and pitching stories and advertorial placements to business and travel publications. The Agency will continue to work with Hill and Knowlton in promoting the City through various public relation efforts.

• Souvenir Shop: The Agency developed the “Rancho Cucamonga Souvenir Shop”

to promote awareness of the City’s “brand.” Quality souvenirs have helped carry the City’s name and message across the United States to a national audience, and have played an important role in marketing Rancho Cucamonga to potential visitors and business investors. Merchandise is continuously monitored, updated and advertised within the community and on the city’s website and can be

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purchased at City Hall and at the Rancho Cucamonga Family Sports Center. • Business Outreach and Hospitality: The Epicenter and the Rancho Cucamonga

Quakes baseball team continue to play an important role in the Agency’s efforts to retain and attract businesses in Rancho Cucamonga. On occasion, company representatives may receive promotional skybox tickets from the Agency, which allow them to experience the way sports and entertainment contribute to the City’s quality of life. The Agency also encourages commercial real estate brokers to identify business executives that could be invited to attend a game. During the reporting fiscal year 2010/11, the Agency hosted 46 organizations in the stadium skybox, including 41 companies and 5 leaders of local organizations.

• Toll-Free Phone Line: The toll-free line continues to be a valuable resource for

making the Agency more accessible to its clients. This toll-free number (1-877-5-RANCHO) has been placed on marketing material and in Agency-directed advertisements.

C. Capital Improvement Projects The Rancho Cucamonga Redevelopment Plan identifies major physical deterrents to growth due to the existence of inadequate flood control public improvements, as a well as a lack of public facilities, open spaces, and utilities which cannot be remedied by private or governmental action without redevelopment. In accordance with Health and Safety Code Section 33445, the Agency is authorized to pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure or other improvement which is publicly owned either within or without the Project Area necessary to carry out the Redevelopment Plan and eliminate the existing conditions causing a reduction of, or lack of, proper utilization of the Project Area. As specified in Health and Safety Code 33080.1(d), the Agency has implemented capital improvement projects as described in the chart on the next page that eliminate the physical and economic blighting conditions, which includes the elimination of conditions that have led to underutilization or disuse of, or a lack of private investment in the project area, and areas that directly impact the project area. These projects have contributed to an increase in economic development activities within the project area by creating jobs, supporting business related activities, and improving circulation in and around the City. The CRA Redevelopment Construction Jobs Calculator is a statistical tool that was developed for CRA by Time Structures, Inc. which allows the Agency to estimate the number of jobs generated to build a project and the amount businesses profited from these projects. This information is reported for each of the projects below and helps illustrate the value of Redevelopment Agencies and the ways they are boosting the local and state economy.

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PUBLIC INFRASTRUCTURE IMPROVEMENTS • Hellman Avenue Storm Drain (Lower Reach): This project is part of the City’s

General Storm Drain Master Plan and will provide much needed flood control services in the southwest section of the Project Area. Improvements on this project include the installation of a storm drain mainline, a catch basin, manholes and widening of the railroad track. Construction on phase I of this project is expected to be complete during the third quarter of 2011 and will provide

CAPITAL IMPROVEMENT PROJECT SUMMARY (as of June 30, 2011)

FUNDED PROJECTS TOTAL

PROJECT COST TOTAL AGENCY CONTRIBUTION

TOTAL JOBS CREATED

TOTAL INCOME GENERATED

Foothill Boulevard Improvements (Phases I & II) $12,000,000 $12,000,000 187 $13,400,000 Hellman Avenue Storm Drain (Lower Reach Phase I) $6,750,000 $6,750,000 84 $6,600,000 East Avenue Master Plan Storm Drain $7,850,000 $7,500,000 98 $7,600,000 Corporate Yard Expansion Project $13,500,000 $6,750,000 197 $14,600,000 Pacific Electric Trail (Phase IV) $4,300,000 $2,400,000 65 $4,800,000 Fire Station #177/Demens Basin Project $3,500,000 $520,000 51 $3,800,000

TOTAL $47,900,000 $35,920,000 682 $50,800,000

PROPOSED PROJECTS (ON HOLD)

PROPOSED PROJECT COST

PROPOSED AGENCY CONTRIBUTION

POTENTIAL JOB CREATION

POTENTIAL INCOME

GENERATION Foothill Boulevard Improvements (Phase III) $3,800,000 $3,800,000 59 $4,200,000 Hellman Avenue Storm Drain (Lower Reach Phases II & III) $7,500,000 $7,500,000 94 $7,300,000

I-15/Base Line Road Interchange $43,000,000 $31,000,000 645 $48,000,000 Upper Cucamonga Storm Drain & Hellman Avenue Improvements $3,500,000 $3,500,000 44 $3,400,000 Etiwanda Avenue Grade Separation $35,000,000 $26,000,000 445 $35,400,000 Archibald Avenue Storm Drain & Street Improvements $1,700,000 $1,400,000 21 $1,600,000 Haven Avenue Median Island Retrofit $4,000,000 $4,000,000 62 $4,500,000 I-15/Arrow Route Interchange $90,000,000 unknown 1,143 $91,200,000 Neighborhood Park at 9th Street and Madrone Street $4,000,000 $100,000 60 $4,300,000 Etiwanda Train Depot $300,000 $150,000 5 $330,000 TOTAL $192,800,000 $77,450,000 2,578 $200,230,000

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necessary flood control improvements along Hellman Ave., from San Bernardino Rd. south to the railroad tracks. The first phase of this project created an additional 84 new full and part-time jobs and generated an estimated $6.6 million in statewide income. Phases II and III of this project, which would continue the flood control improvements south to the Cucamonga Creek Flood Control Channel and north along San Bernardino Rd. from Hellman Avenue to Spinel Avenue, have been put on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding. Both phases of this project would create an estimated 84 new jobs and generate $7.3 million in statewide income.

• Foothill Boulevard Improvements:

The Foothill Boulevard (Grove to Vineyard) improvement project includes median improvements, street widening, sidewalks, landscaping, a pedestrian bridge, a street archway and a Point of Interest Trailhead that will celebrate Historic Route 66 and connect the final phase of the Pacific Electric Trail route. Construction on Phase I of the project (Vineyard Avenue to the pedestrian bridge) is expected to be complete by the fourth quarter of 2011and will greatly improve traffic circulation and safety along the City’s primary retail corridor. This project created an additional 187 new full and part-time jobs during phases I & II of construction and generated an estimated $13.4 million in statewide income. Phase III of this project (east of the bridge to Grove Avenue) has been put on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding. Construction on phase III of this project would create an estimated 59 new full and part-time jobs and generate $4.2 million in statewide income.

• East Avenue Master Plan Storm Drain (MPSD): The East Avenue MPSD will

extend from an existing basin north of Base Line Road, south to Foothill Boulevard, and will include a tie in to the East Avenue drain from the existing Base Line storm drain west of East Avenue. Construction on this project will begin during the fourth quarter of 2011 and will create an additional 98 new full and part-time jobs and generate $7.6 million in statewide income.

• Upper Cucamonga Storm Drain and Hellman Avenue Widening Improvements:

This project improves the existing channel and storm drain at a point along the railroad right-of-way, west of Vineyard Avenue to Base Line Road; west along Base Line Road to Roberds Street; and north westerly on Roberds Street to Amethyst Street. Phases I and II of this project, which included the widening of Hellman Avenue south of Base Line Road to Palo Alto Street, and the installation

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of a new pipe from Vineyard Avenue to Hellman Avenue, was completed during the second quarter of 2008. The design process for Phase III was completed in FY 2009/10 and construction is currently on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27. This project will provide much needed flood protection for businesses and residences that are located within the project area and will bring an estimated 44 new jobs to the community and generate $3.4 million in statewide income.

• I-15/Base Line Interchange: This project is currently in the Project Report and

Design phase. Both the project report and design are being worked on concurrently and are expected to be complete by the first quarter of 2012. This project will expand the existing on and off-ramps at the I-15 Freeway and Base Line Road and is a much needed improvement resulting from the economic growth that has occurred in the City during the last 10 years. The construction phase of this project is expected to create an estimated 645 new full and part-time jobs and generate an additional $48 million in statewide income. Construction on this project has been put on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Archibald Avenue Storm Drain & Street Improvements: This project will provide

much needed flood control protection to the project area and includes pavement rehabilitation and the installation of a storm drain along Archibald Avenue, from Base Line Road south to Foothill Boulevard. This project is currently in the design phase, with construction anticipated for the second quarter of 2012, if funding becomes available. Construction on this project would generate an estimated 21 new jobs and generate $1.6 million in statewide income. Construction on this project is dependent on the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Etiwanda Avenue Grade Separation – The Etiwanda Avenue grade separation is

a major infrastructure project that will improve vehicular traffic and enhance safety for all travelers by separating train traffic from vehicle traffic along Etiwanda Avenue. This project is currently in the preliminary phase and has undergone surveying, soils testing, and the development of base plans, and is waiting on funding to begin the design phase. Construction on this project is expected to create an estimated 445 new jobs and generate $35 million in statewide income. The future of this project is dependent on the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Haven Avenue Median Island Retrofit – This project would provide retrofit

improvements to the median islands along Haven Avenue from 4th Street north to the 210 Freeway. Proposed improvements include a change in the median island grade and the installation of cobblestone and low water landscaping to reduce the water consumption needs currently required by the existing landscape. This

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project would create an estimated 62 new jobs and generate $4.5 million in statewide income. Construction on this project is dependent on the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• I-15/Arrow Route Interchange: In 2008 the Agency began acquiring right-of-way

for a proposed interchange at Arrow Route and the I-15 Freeway. This project would add an on and off ramp in the City’s industrial area, allowing for improved access to and from the freeway, and reduce traffic congestion at adjacent interchanges. This project has been put on hold indefinitely due to the 2010 and 2011 ERAF takes of Redevelopment Agency funding in 2009. Construction on this project would have created an estimated 1,143 new full and part-time jobs and generate $91.2 million in statewide income.

COMMUNITY & CULTURAL FACILITIES

• Corporate Yard Expansion:

In 2008, Staff began working on a master plan design to expand the City’s Corporate Yard; a facility that provides necessary services to help prevent blight within the project area. The master plan includes the development of a new administration/crew building, a new household hazardous waste collection facility, and five acres of site improvements. Construction on this project began during the second quarter of 2011 and is expected to be complete by the second quarter of 2012. This project has created an additional 197 new full and part-time jobs and has generated $14.6 million in statewide revenues.

• Pacific Electric Trail: The Pacific Electric

Trail follows the east-west route of the historic Pacific Electric Railroad and has a paved section for pedestrians and bicyclists, and a softer section of decomposed granite for joggers and equestrian riders. Phases I, II and III of this project were completed in October 2007, connecting the City’s first five mile centerpiece of the trail from Amethyst Avenue to Etiwanda Avenue. Phase V of the project was completed during the

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first quarter of 2009 and connects the trail from Etiwanda Avenue east to the I-15 Freeway. Construction on phase IV of this project, which will connect the trail from Amethyst Avenue west to Grove Avenue, is currently underway and is expected to be complete by the fourth quarter of 2011 with the opening of the new Foothill Boulevard pedestrian bridge. Construction on phase IV of this project created an additional 65 new full and part-time jobs and generated $4.8 million in statewide income.

• Neighborhood Park @ 9th Street & Madrone Avenue: In 2005 the Agency

acquired 3.4 acres of land as part of an anticipated affordable housing project. The land was zoned as open space for the purpose of developing a much needed neighborhood park in the southwest Cucamonga area. Today, the property remains undeveloped. Agency staff assisted the Community Services Department in applying for a grant to develop a park on the site and hosted five neighborhood meetings during the grant application process to solicit feedback from residents on how the park should be developed. In the first quarter of 2011, the City was awarded the grant for $3.9 million to fund the design and construction of the park. The Agency intends to fund the demolition of the existing property structures prior to construction. This project is currently in the design and environmental report phase; however the demolition of the existing property structures has been put on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding. Construction on this project is anticipated to create an estimate 60 new full and part-time jobs and generate $4.3 million in statewide income.

• Historic Preservation: There are many historical resources in the Project Area

that the agency has supported over the years, including the Chaffey-Garcia House, Isles House and the Oral History Program. During this reporting period, the Agency and the City’s Planning Department finalized negotiations with the San Bernardino Association of Governments (SANBAG) to purchase a half acre parcel and modify an existing long term lease on the adjacent 3.5 acre parcel for the acquisition and restoration of the historic Etiwanda Train Depot property. The Depot is located in the heart of the proposed Etiwanda Historical District and could operate as a museum and trail head for the Pacific Electric Trail. Staff is currently gathering bids for project restoration, which include roof repair, lead paint and asbestos removal, stucco repair, connection to the sewer line, and plumbing and electrical repairs. This project would create an estimated 5 new jobs and generate $330,000 in statewide income. Construction on this project is currently on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

FIRE & PUBLIC SAFETY FACILITIES

• Fire Station #177/Demens Basin Project: In October 2008, the Fire Protection

District approved a Purchase and Sale Agreement for the acquisition of 1.16

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acres of land with San Bernardino County Flood Control for the development of a Fire Station. The Agency’s involvement in this project was limited to land preparation and infill of the Demens Basin so the property would be developable. It is anticipated that the fire station will be complete by the fourth quarter of 2011. The construction phase of this project created an additional 51 jobs and generated $3.8 million in statewide income.

• Relocation of San Bernardino Rd. Fire Station #172: In the first quarter of 2009,

the Agency culminated its year-long search for property needed for the relocation and reconstruction of the San Bernardino Road Fire Station #172 with the identification and acquisition of two parcels. The Agency successfully acquired one of the two properties at a foreclosure auction, and the other property through private sale. During this reporting period, the Agency assisted the Fire Protection District with preparation of the property for construction (demolition of existing properties, rough grading, etc.). This process will continue throughout FY 2011/12.

D. Workforce Housing The Rancho Cucamonga Redevelopment Plan identifies a lack of decent and affordable housing to meet the needs of the community's low and moderate income families, and establishes a goal to provide for, improve and maintain the city's supply of affordable housing that supports a live/work environment for Rancho Cucamonga’s workforce. The Agency's workforce housing projects provide home ownership and rental opportunities to households at or below 90% of area median income. As specified in Health and Safety Code Section 33334.3(d), the Agency has determined that the administrative expenses approved in the fiscal year 2010/11 budget are necessary for the production, improvement, and preservation of very low, low and moderate income housing. HOME OWNERSHIP

• First Time Homebuyers Program: The Redevelopment Agency contracts with Neighborhood Housing Services of the Inland Empire (NHSIE) to administer the First Time Homebuyers Program. NHSIE is a non-profit organization that specializes in mortgage assistance programs for lower income families. The First Time Homebuyers Program provides up to $80,000 in the form of a silent second mortgage to qualifying low and moderate-income families for the purchase of their first home. During this reporting period, the Agency continued the requirement that participants must purchase a foreclosed property in order to help reduce the number of distressed properties in the community and minimize their potential to create blight. To date, his program has assisted 117 families with the purchase their first home. Agency staff continued with its annual re-certification process during this reporting period to verify that all homeowners

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participating in this program are currently residing in their property. This program is currently on hold due to the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

RENTAL OPPORTUNITIES The Agency continues to monitor workforce family and senior housing projects that are operated by National Community Renaissance-CORE (formerly Southern California Housing Development Corporation), Northtown Housing Development Corporation (NHDC), Orange Housing and LINC Housing. Affordable rents for family and senior housing range from $345 - $985 for a one-bedroom unit and $410 - $1,190 for a two-bedroom unit, as compared to market rate rents that average $1,254 for all multi-family units in Rancho Cucamonga. . Family Housing Partners & Developments LINC Housing

• Pepperwood Apartments – 228 affordable units – affordability covenants expire in 2105. NATIONAL CORE

• Rancho Verde Village Apartments – 104 affordable units – affordability covenants in perpetuity; not less than 99 years.

• Rancho Verde East Apartments – 40 affordable units – affordability covenants are in

perpetuity; not less than 99 years.

• Mountainside Apartments – 188 affordable units – affordability covenants are in perpetuity; not less than 99 years.

• Monterey Village Apartments – 110 affordable units – affordability covenants are in

perpetuity; not less than 99 years. • Sunset Heights Apartments – 116 affordable units

– affordability covenants are in perpetuity; not less than 99 years.

• Sycamore Springs Apartments – 96 affordable

units – affordability covenants are in perpetuity; not less than 99 years.

• Villagio at Route 66 Apartments – 131 affordable

units – affordability covenants are in perpetuity; not less than 99 years.

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NORTHTOWN HOUSING DEVELOPMENT CORPORATION

• Villa del Norte Apartments – 87 affordable units– affordability covenants expire in 2051. • Las Casitas Apartments – 14 affordable units – affordability covenants expire in 2027.

Senior Housing NATIONAL CORE

• Heritage Pointe Apartments – 48 affordable units – affordability covenants expire in

2091.

NORTHTOWN HOUSING DEVELOPMENT CORPORATION

• Olen Jones Apartments – 96 affordable units – affordability covenants are in perpetuity; not less then 99 years.

ORANGE HOUSING DEVELOPMENT CORPORATION

• Villa Pacifica Apartments – 158 affordable units – affordability covenants expire in 2027.

• Site Visits: On an annual basis, staff will visit all of the Agency’s multifamily

complexes with affordability covenants to inspect the physical condition of the properties. Site visits for this reporting period took place in October and November of 2010. These visits included a general walk-around of the complex to allow for visual inspection of the property, and an inspection of several randomly selected units, which provided staff with an opportunity to conduct audits of residents’ ongoing eligibility.

NEW PROJECT DEVELOPMENT

• San Sevaine Villas: In August 2005, the Agency approved a loan agreement for

$40.7 million with Northtown Housing Development Corporation for land acquisition and construction of 223 affordable one-bedroom, two-bedroom and three-bedroom family units at the southwest corner of Foothill Boulevard and East Avenue. An initial disbursement of $8.3 million was made to acquire the 14-acre parcel and provide reimbursement of pre-development expenses to the developer. Construction on this project was completed in the first quarter of 2011 and the complex is now 100% leased. Based on the information obtained by the CRA jobs calculator, this project created an additional 524 new full and part-time jobs during its construction phase and generated $40.2 million in statewide income.

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ADDITIONAL HOUSING PROGRAMS • Mobile Home Rental Assistance Program: In June 2008, the City Council

approved a Mobile Home Rental Assistance Program that provided up to $50 per month towards the rent of a mobile home space. Families that were eligible for this program were at, or below, 60% of the county median income, and paying 30% or more of their income on housing. Staff reevaluated the program in 2009, in an effort to provide additional help to the mobile home residents, and increased the monthly assistance from $50 to $100, and reduced the 30% requirement to 25%. During this reporting period, staff worked with each of the mobile home parks to qualify 50 additional residents for participation in the rental assistance program. This program is currently assisting 160 eligible mobile home residents, and staff will continue to reach out to the mobile home parks to increase the level of participation from the residents.

• Mobile Home Accord – The Mobile Home Accord was implemented to stabilize

the rents of mobile home rental spaces in Rancho Cucamonga. This program was previously monitored by the City Manager’s Office and was transferred to the Redevelopment Agency in 2009. Agency staff serves as a liaison between the mobile home park owners and the park residents. The Accord was renewed in 2008 and is valid until 2015. Staff continues to review and verify rent increase submittals for the eight parks and facilitates resolutions between residents and management on various park issues.

• Foreclosure Prevention and Assistance Workshops – During this reporting

period, Agency staff partnered with Senator Bob Dutton’s office to host its fourth Foreclosure Prevention and Assistance Workshop since 2008. This year’s workshop brought lenders, real estate professionals, government agencies and non-profit groups together to offer homeowners valuable information and assistance to help keep them in their homes. Hundreds of homeowners from all throughout the region participated in this year’s event and many of them received loan modifications on site. Staff has plans to host additional workshops in the future and will continue to evaluate other opportunities to assist homeowners that are facing foreclosure.

• San Bernardino County Homeless Partnership: In January 2008, the County of

San Bernardino formulated a partnership that coordinates services and resources in an attempt to bring an end to homelessness in the County. The Agency’s Housing Programs Manager represents the City on the County’s Homeless Partnership Committee. During this reporting period, the Committee finalized its 10-year strategic plan to end homelessness in San Bernardino County. Portions of the plan are currently being implemented as county funding becomes available.

• Neighborhood Stabilization Program (NSP): In 2009, the City received

approximately $2 million in federal funding through the Neighborhood

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Stabilization Program (NSP). During this reporting period, the Agency assisted the City in utilizing its NSP funds to assist low and moderate income families through the City’s First-Time Homebuyers Program. NSP funds were also used to purchase three Rancho Cucamonga homes that were in foreclosure, which will be rehabilitated and sold to families participating in the First-Time Homebuyers Program. The remainder of the City’s NSP funds will be used to assist local nonprofit agencies that provide safe and affordable housing, such as House of Ruth and Habitat for Humanity.

• Crime Free Multi-Family Housing Program: The Agency partners with the

Rancho Cucamonga Police Department to facilitate participation from its housing partners in the City’s Crime Free Multi-Family Housing Program. This program provides multi-family property owners and managers with instruction on how to administer the eviction process, establish fair tenant screening, provide a safe living environment for all tenants, and improve working relationships with law enforcement.

REGULATORY REQUIREMENTS California Redevelopment Law imposes certain requirements for agencies to produce affordable housing units within Redevelopment Project Areas. These requirements are more commonly referred to as the “30 percent Requirement” and the “15 percent Requirement”. 30 Percent Requirement California Health and Safety Code Section 33413(b)(1)requires that at least 30% of all new or substantially rehabilitated dwelling units developed by an Agency (not units developed or rehabilitated by developers with Agency assistance) must be available at affordable housing costs and occupied by persons and families of low or moderate income (the 30 percent requirement). At least 50 percent of those units must be available at affordable housing costs to, and occupied by, persons and families of very low income. The 30 percent requirement is determined by the aggregate number of all new and substantially rehabilitated dwelling units developed by the Agency, and are not calculated for each individual housing project. The Redevelopment Agency’s policy has been to use 20% Housing Set-aside funds to work with private non-profit developers to develop and/or preserve affordable housing units. Therefore, the Redevelopment Agency has not directly constructed or substantially rehabilitated units within the Project Area. 15 Percent Requirement California Health and Safety Code 33413(b)(1)(2)(A)(i) requires that at least 15% of all new and substantially rehabilitated dwelling units developed within the project area by public or private persons other than the Redevelopment Agency (including those entities

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such as non-profit developers receiving Agency assistance) shall be available at affordable housing costs and occupied by persons and families of low or moderate income (the 15 percent requirement). Not less than 40% of the dwelling units required to be at affordable housing costs are required to be available and occupied by very low income households. The 15 percent requirement is determined by the aggregate number of all new and substantially rehabilitated dwelling units within a project area and is not calculated for each individual housing project. Redevelopment Law (Health & Safety Code Section 33413(b)(1)(2)(A)(ii) provides that under certain conditions, a Redevelopment Agency may adopt a Resolution to determine that units produced outside of the Project Area with Agency assistance may be applied to the Project Area production requirement on a 2-for-1 basis. In other words, each 2 units produced outside the Project Area with Agency assistance and restricted by Agency Regulatory Agreements may count as 1 unit toward the production requirement. As part of the Redevelopment Plan, the Agency determined the project area benefit and authorized units produced by the Agency outside of the Project Area to count toward Project Area production requirements. The Housing Element of the 2001 General Plan estimates that 18,368 residential units will be constructed within the Redevelopment Project Area at build-out. Therefore, under the 15 percent production requirement, prior to the expiration of the Redevelopment Plan, the Agency will need to provide 2,755 units affordable to, and occupied by, persons and families of low or moderate income. At least 40% (1,102) of these units are required to be affordable to, and occupied by, very low Income households (50% and less of the area median Income). In meeting the Agency’s 15 percent production requirement, 2,069 affordable units have been produced to date. Of these units, 891 (43%) have been restricted as affordable to, and occupied by, very low income households. The chart on the next page demonstrates the Agency’s progress in meeting its production requirements.

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E. Workforce Housing Unit Summary

REDEVELOPMENT AGENCY 15% HOUSING PRODUCTION REQUIRMENT* (as of June 30, 2011)

VERY LOW LOW MODERATE TOTAL

PROJECT TENURE 50% & LESS 51-80% 81-120%

SUBSIDIZED UNITS

Villa del Norte Rental 36 51 0 87 Las Casitas Rental 14 0 0 14 Rancho Verde Village* Rental 50 36 18 104 Rancho Verde East * Rental 19 21 0 40 Mountainside Rental 77 38 73 188 Monterey Village Rental 56 28 26 110 Sycamore Springs* Rental 60 36 0 96 Pepperwood Rental 99 129 0 228 Villa Pacifica * Rental 127 31 0 158 Heritage Pointe** Rental 24 24 0 48 Olen Jones Sr. Apartments* Rental 92 4 0 96 San Sevaine Villas* Rental 110 55 58 223 Sunset Heights* Rental 60 56 0 116 Villagio at Route 66 Rental 66 65 0 131 Ownership Units (NHDC) Owner 0 0 48 48 First Time Homebuyers Owner 1 20 96 117

Total 891 594 319 1804 SAN BERNARDINO COUNTY BOND PROJECTS

(as of June 30, 2011) PROJECT TENURE VERY

LOW LOW MODERATE TOTAL

SUBSIDIZED UNITS

Parkview Place – Terra Vista Rental 0 30 0 30 Mountain View – Terra Vista Rental 0 54 0 54 Sycamore Terrace – Terra Vista Rental 0 26 0 26 Waterbrook Rental 0 76 0 76 Evergreen - Terra Vista Rental 0 79 0 79 County Bond Project Total 0 265 0 265

CUMULATIVE TOTAL 891 859 319 2069 CUMULATIVE PERCENTAGE 43% 42% 15% (unit numbers are estimates)

Based on 2001 General Plan projection of 18,368 residential units in the project area at buildout; 2,755 affordable units will be required to meet Redevelopment Project Area requirements.

* These units were produced by the Agency outside the Project Area and have been calculated as 1 unit for each 2 units produced in compliance with Health & Safety Code Subsection 33413(2(ii).

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F. Property Report As specified in Section 33080.1(e) of the California Health and Safety Code, the Agency acknowledges that it owns and is holding for resale the following properties as described in the table below.

REDEVELOPMENT AGENCY PROPERTY CURRENTLY OWNED (As of June 30, 2009)

Location APN Size Northwest Corner of Base Line Rd.

and Day Creek Blvd. 1089-031-15, 16 & 35 15.18 Acres 9561 San Bernardino Rd. 0208-151-17-0000 0.56 Acres 9547 San Bernardino Rd. 0208-151-07-0000 0.82 Acres

SEC of Church St. and Arbor Lane 0227-452-46-0000 5.4 Acres NEC of Civic Center Dr. and Law

and Justice access road 0208-353-09-0000 1 Acre NWC of Utica and Civic Center Dr. 0208-353-06-0000 1 Acre

Base Line & I-15 Interchange 0227-131-59-0000 125,888 sq. ft 9th & Madrone 0207-262-57-0000 3.4 Acres

G. Fiscal Statement In accordance with Section 33080.5 of the California Health and Safety Code, a fiscal analysis of the Agency is shown on the attached Statement of Indebtedness. Briefly, the total outstanding indebtedness for the Project Area, as of June 30, 2011, was $1,642,162,217. This total debt is a combination of loans from the City of Rancho Cucamonga; interest on the loans; obligations under the pass-through agreements with the County of San Bernardino, Chino Basin Municipal Water District, Cucamonga Valley Water District, Chaffey, Central, Cucamonga, and Etiwanda School Districts; regional facilities payments; and payments on the tax allocation bond issues. The total amount of payments the Agency paid on the existing indebtedness from July 1, 2010 to June 30, 2011 was $97,315,055.

In the reporting fiscal year 2010/11, the Agency received a total of $98,828,154 in tax increment revenue. The majority of this revenue is used to pay existing debt obligations. The Agency is also required to set aside 20% of the gross tax increment allocation pursuant to Section 33334.2 of the California Health and Safety Code, which totaled $19,765,631 during this reporting period. In addition, the Inland Empire Utilities Agency receives direct payments from the Agency when tax increment is received. Revenues are received pursuant to a pass-through agreement executed at the time the Project Area was formed. The pass-through payment is used by the districts to meet capital and bonded indebtedness obligations. In fiscal year 2010/11, a total of $3,032,954 was paid to this district

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pursuant to Section 33401(b) of the California Health and Safety Code. The Agency also paid a total of $8,007,679 to the County of San Bernardino in fiscal year 2010/11, and an additional $8,490,643 to the Fire Protection District, pursuant to an agreement with the District dated April 22, 1992. In accordance with SB 211, the Agency paid a total of $658,720 to the City of Rancho Cucamonga, the Inland Empire Joint Resource Conservation District, and the Chino Basin Water District.

Furthermore, pursuant to an agreement dated June 1, 1989, the Agency paid a total of $6,028,588 to Chaffey Joint Union High School District, Cucamonga School District, Etiwanda School District, and Central School District in fiscal year 2010/11. In accordance with SB 211, the Agency also paid a total of $492,748 to the Chaffey Community College District in fiscal year 2010/11. The Agency acknowledges that no loans equal or exceeding $50,000 were found to be in default in fiscal year 2010/11. H. Time Limits In accordance with Health & Safety Code Section 33080.1(g), below is a list of the fiscal years the Agency expects each of the following time limits to expire: 1. The original time limit for the commencement for eminent domain proceedings to

acquire property within the project area expired on August 13, 1999. However, Amendment 3 to the Redevelopment Plan reinstated the Agency’s authority to acquire real property by eminent domain for APN 229-031-47 & 48 only until 2014.

2. The time limit for the establishment of loans, advances, and indebtedness to finance the Redevelopment project expires on January 1, 2014.

3. The time limit for the effectiveness of the Redevelopment Plan expires on December 23, 2024.

4. The time limit to repay indebtedness with the proceeds from property taxes expires on December 23, 2034.

IV. Comparison of the Actual Achievements of Fiscal Year 2010/11 with the Goals Outlined in the Fiscal Year 2009/10 Annual Report

The Annual Report for fiscal year 2009/10 identified the 2010/11 work program goals consistent with projects prioritized in the Redevelopment Plan. Thus, projects that began during the last year will receive further implementation and other projects will be considered as they relate to the overall goals set forth in the Redevelopment Plan, which include:

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∼ Protect and promote the sound development and redevelopment of blight, as defined in Section 33030 through 33032 of the California Health and Safety Code;

∼ Assure that projects in the Project Area provide assistance in alleviating physical and economic barriers to development in the Project Area;

∼ Assure that projects in the Project Area provide for balanced and orderly development;

∼ Assure that projects in the Project Area are in conformance with the City’s General Plan; and

∼ Provide for assurance of adequate tax increment to help finance improvements in the Project Area.

Specific work program goals identified for the 2010/11 fiscal year included six focused areas: Commercial and Industrial Economic Enhancement; Marketing and Promotions, Capital Improvements, Community and Cultural Facilities, Fire Facilities Programs and Workforce Housing. As indicated in Section III of this report, considerable progress has been made in these areas. The Agency will continue to take a proactive approach to mitigate economic deterioration by assisting in the establishment of new businesses and the creation of new jobs through the support of economic strategies that help eliminate blight in the community. The opening of Victoria Gardens in 2004 and Bass Pro Shops in 2007 have had a significant economic impact on the community, providing over 3,500 permanent and part-time jobs for local residents and generating over a half million square feet of additional commercial development on adjacent properties. Both projects have provided a substantial increase to the city’s annual sales tax revenue through visitors shopping and dining in the City and additional transit occupancy tax revenue from the overnight hotel stays of guests traveling from throughout the region to visit southern California’s only Bass Pro Shop. Agency staff continues to work with Forest City Development to expand new retail and office opportunities at Victoria Gardens. The continued implementation of the Third Party Electrical Certification Program, Banner Sponsorship Program, Business Appreciation Week and Business Visitation Programs has helped the Agency maintain a positive relationship with its business community and maintain their success in Rancho Cucamonga. Through its ongoing business relocation and expansion efforts, including the new Rancho Advantage Program that helps facilitate the pre-submittal planning process, the Agency has also supported a number of Rancho Cucamonga companies in expanding their businesses here in the City and assisted incoming businesses with the opening their new facilities in Rancho Cucamonga. The Agency’s partnerships with the Rancho Cucamonga Chamber of Commerce, Inland

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Empire Economic Partnership, Small Business Development Center, National Association of Office and Industrial Properties, and the International Council of Shopping Centers have helped maintain a comprehensive economic development effort with a strong regional base. Thousands of business contacts have been made and several site relocations and business expansions were assisted. In addition, the Inside Rancho Website kept the commercial real estate community aware of the quality of development, growth and continuing opportunities that are available in the City. Agency staff has maintained a strong focus on workforce development by partnering with other agencies to implement programs that assist local residents in their job search efforts. Agency staff has continued to work with its West End Workforce Opportunity Resource Committee (WE-WORC) partners to enhance its online career awareness website (CareerQuest.TV) that provides information to high school and college students about career paths in industries within the Inland Empire. The Agency has also continued its partnership in two local job fairs (David Drier and the Inland Empire West End Job Fair) that assisted in providing local jobs for local residents. The Agency made considerable progress in implementing the Wayfinding Directional Guide Sign Project. Staff worked extensively to develop a uniform sign template that reflects the image of Rancho Cucamonga and creates a criterion to determine the local facilities and destinations that should be included on the signage. These signs have helped direct visitors and residents to places of interest within the community and have been a valuable tool for promoting tourism in Rancho Cucamonga. Staff has also continued its partnerships with Lamar Advertising and General Outdoor Advertising to promote City-sponsored events and programs on the four new digital billboards in the community. The Agency continued its print advertising efforts by placing ads in a variety of journals and site selection publications in order to attract high-tech companies and corporate office users to the City. The Agency's email marketing efforts have been well received by the public, and have worked to keep business and industry partners up-to-date on business-related news and information in the City. The Agency has continued to work with a pubic relations firm to implement a business attraction and retention public relations media strategy, which has been very effective in generating interest from businesses looking to relocate to the Inland Empire. This public relations firm has also worked to promote new hotel activity and tourism in the City, and pitch stories about the City to airline and travel magazines. The addition of the Agency’s travel and tourism marketing campaign, which incorporates advertising, public relations efforts, and partnerships to promote tourism in and around Rancho Cucamonga, has been very effective in increasing the community’s exposure as a Southern California travel destination. These efforts have resulted in thousands of requests for tourism information from individuals from all throughout the world. Staff continues to promote Agency programs and advertise business, housing, education and tourism-related information on its Redevelopment Agency website. The Agency has also continued to market and promote awareness of the City’s brand by

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providing local and perspective companies with an opportunity to attend a Quakes game at the Epicenter and by distributing merchandise through its Souvenir Shop that carry’s the City’s name and message to a broader audience. The Agency’s marketing resources, including the Visions Newsletter, Fun Book and toll-free phone line, have continued to be valuable tools for promoting Rancho Cucamonga as a great place to live, work and play. Extensive work has been carried out with regard to capital improvement projects in the project area. Phases I & II of the Foothill Boulevard improvement project are nearing completion and have helped improve traffic circulation along the City’s primary retail/commercial corridor and revitalize the western portion of the project area. The I-15/Base Line Road interchange project is currently underway, with the design and project report phase expected to be complete by the first quarter of 2012. The completion of the first two phases of the upper Cucamonga storm drain has helped to relieve flooding and encourage private investment in the southwest portion of the project area. Design on the third phase of this project was completed in FY 2009/10, and construction is pending the receipt of additional funding. Construction on phase I and the design on phase II of the Hellman Avenue storm drain (lower reach) were completed during this reporting period. Staff also completed the design phase of the East Avenue Storm Drain, with construction scheduled to begin in the fourth quarter of 2011. Construction on the Corporate Yard expansion project began during the second quarter of 2011 and is expected to be complete in the second quarter of 2012. The completion of Phases I, II, III and V of the Pacific Electric Trail have helped improve recreation amenities both within and around the project area. Construction is nearing completion on Phase IV of the trail, which will connect the trail from Amethyst Avenue west to Grove Street and complete the 7-mile segment in Rancho Cucamonga. The Agency made considerable progress with the Community Services Department in securing a $3.9 million grant for the construction of a Neighborhood Park at 9th Street and Madrone Avenue. The park is currently in the design phase, with construction anticipated to begin in FY 2011/12. Staff also continued its work with the Planning Department and San Bernardino Association of Governments (SANBAG) to complete a lease agreement for acquiring and rehabilitating the Historic Etiwanda Train Depot Property. Staff continued to work with the Fire District on the infill of the Demens Basin and the construction of Fire Station #177, which is scheduled to be complete during the fourth quarter of 2011. The Agency also assisted the Fire Protection District with identifying a site for the relocation of Fire Station #172 and preparing the property for construction (demolition of existing properties, rough grading, etc.) The Agency’s is continuing to work toward achieving its affordable housing goals by providing over 2000 affordable covenants within several existing multi-family complexes

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that have been substantially rehabilitated and upgraded to a higher physical standard; implementing a first-time homebuyer program for low income households; and developing new affordable multi-family and senior complexes. The Agency continued to promote its First Time Homebuyer Program, which recently shifted its focus to require participants to purchase homes that are bank owned or in foreclosure. The Agency also continued to implement its mobile home rental assistance program and supervise of the Mobile Home Accord program to help keep rents affordable in the City’s mobile home parks. The Agency hosted its fourth Foreclosure Prevention Workshops to assist local residents that are on the verge of losing their homes to foreclosure, and also secured federal funding to assist first-time homebuyers with the purchase of foreclosed or abandoned homes in the City. Construction was completed in the first quarter of 2011 on the San Sevine Villas housing project, which provided an additional 223 one and two-bedroom affordable units. Staff also continues to monitor the Agency’s existing housing investments through its Site Visitation Program, which allows staff to inspect the physical conditions of the buildings. V. Work Program Goals for Fiscal Year 2011/12 The following is a summary of the economic development, capital improvement, and workforce housing projects and goals anticipated for implementation during the 2011/12 fiscal year to help eliminate blight in the community. A. Commercial and Industrial Economic Enhancement Programs

• Victoria Gardens: Agency staff will continue to work with Forest City

Development on expanding new retail and office opportunities at the regional center located north of Foothill Boulevard and west of the I-15 Freeway.

• Healthy RC Program: The Agency will continue to assist with the ongoing

implementation of a citywide Healthy RC program. The Agency’s primary involvement will remain with the Healthy Earth component of the program, which contributes to the development of policies and strategies that advance environmental sustainability and contributes to the City’s economic vitality.

• Third Party Electrical Certification Program: The Agency will continue to identify

new companies to assist through this program. Staff will also evaluate ways to expand the type of assistance this program provides by addressing the changing needs of businesses within the community.

• Economic Development Banner Program: The Agency will continue to

implement its Economic Development Banner Program to encourage community pride and attract customers to the City’s retail/commercial corridor along Foothill

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Boulevard. • Community and Economic Profile: The Agency will continue to work to develop

current economic data for the production of the City’s Community and Economic Profile. This document will be further developed to use as a marketing tool and included in the marketing packet.

• Directional Guide Sign Program: The Agency will continue to implement its

Directional Guide Sign Program to provide directional assistance to attractions in the community. Staff will work together to identify any new community destinations that may be eligible to receive directional signage based on the program criteria.

• Small Business Development Center: The Agency will continue to support the

Inland Empire Small Business Development Center to provide free business counseling to local companies and residents that are interested in starting their own companies in Rancho Cucamonga. This program has been implemented with the support of the Rancho Cucamonga Chamber of Commerce.

• Business Appreciation Week: The Agency will continue to implement activities

during the first week in May in order to show its appreciation to the Rancho Cucamonga’s business community. Activities will include sponsoring the Chamber of Commerce’s annual business golf tournament and reception and hosting the annual City business appreciation night mixer and Quakes baseball game at the Epicenter.

• Rancho Advantage: The Agency will continue to implement its Rancho

Advantage Program as a way to assist and advise new and expanding companies on their individual site-specific building and tenant improvement requirements.

• Business Relocation/Expansion Assistance: The Agency will continue to assist

potential new and existing companies with their relocation, expansion and consolidation efforts.

• Rancho Cucamonga Chamber of Commerce Partnership: The Agency will

continue to jointly promote economic development with the Chamber of Commerce under a Cooperative Agreement. Agency staff will continue to attend the Chamber's weekly networking meetings, participate in local grand opening and ribbon cutting ceremonies and support other Chamber events and activities in order to show its commitment to the Chambers business retention and expansion efforts.

• International Council of Shopping Centers (ICSC): Staff will continue to

participate in the ICSC Western Division Conference in San Diego to promote retail opportunities at retail venues in the City, such as Victoria Gardens and

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other community shopping centers.

• Inland Empire Economic Partnership: The Agency will continue to participate with the Inland Empire Economic Partnership (IEEP) in marketing programs aimed at attracting new companies to the region. Agency participation includes providing staff support for conferences and trade shows and assisting with site searches for business relocations and film locations.

• Green Business Initiatives: Agency staff will continue to implement and promote

its green business initiatives and activities, such as the Healthy RC Program and the Green Business Recognition Program. The Agency will also continue its partnership with the Inland Valley Economic Partnership on the Green Valley Initiative in an effort to attract green industry companies to the Inland Empire, which could result in the creation of thousands of new jobs within the green industries.

• Business Visitations: The Agency will continue to establish and maintain contact

with the business community and pursue an aggressive outreach schedule to establish new relationships with local businesses. Staff will maintain contacts with referral agencies such as SBDC, IEEP, Chaffey College, utility companies and other permit assistance and business development agencies.

• Inside Rancho Website: The Agency will continue to enhance its site selection

website and evaluate ways to provide additional virtual features that will make the site more user-friendly for visitors. This site continues to be a valuable tool that helps generate interest in properties throughout Rancho Cucamonga.

• Workforce Development: Agency staff will continue to work with its West End

Workforce Opportunity Resource Committee (WE-WORC) partners to enhance its online career awareness website (CareerQuest.TV) which provides valuable information to high school and college students about career paths related to industries and companies within the Inland Empire.

• Job Fairs: The Agency will continue to participate in local and regional job fairs to

help unemployed residents find jobs within the region. In October 2011, the Agency will partner with several neighboring cities and local legislators to host the third annual Inland Empire West End Job Fair. This event is anticipated to draw over 100 local employers and offer an estimated 2000 jobs to local job seekers.

• International Trade: Staff will continue to identify new opportunities to implement

international trade programs, such as the Latin American Connection, and explore other world markets that may be good candidates for U.S. exporting.

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B. Marketing and Promotions

• Print Advertising: The Agency will continue to advertise in Journals and site selection publications that will attract high-tech companies and corporate office users as stated in the Agency's Economic Strategy. The Agency will continue to identify ways to engage in joint venture advertising with neighboring cities and its local tourism partners to market the Inland Empire as a prime business market.

• Fun Book: The Agency will continue to update and distribute its Fun Book to

promote venues, activities and events in Rancho Cucamonga. • Tourism Marketing Program: The Agency will continue to expand its tourism

marketing program to further enhance and increase tourism in the City. Staff will also continue developing its relationships with its local Tourism Partners to help promote and expand tourism-related activities in and around Rancho Cucamonga.

• E-Mail Marketing: Current business-related news and information will be

provided and maintained on the Agency's web pages and through e-mail/web-based technologies, such as FastTrack, Opportunities, and other various tourism pieces.

• Digital Billboard: The Agency will continue to work with Lamar Advertising and

General Outdoor Advertising to advertise City events and programs on the digital billboards along the I-15 freeway and Foothill Boulevard. These digital billboards have provided valuable new marketing opportunities for the City and Agency and have helped reduce blight within the Project Area.

• Redevelopment Agency Website: Staff will continue to promote Agency

programs and advertise business, housing, education and tourism-related information on the Redevelopment Agency website.

• Public Relations Program: Staff will continue to work with the public relations

firm Hill and Knowlton to advance its public relations and media strategy and to emphasize hotel activity and tourism in the City.

• Souvenir Shop: Souvenir products will be monitored for quality merchandise and

demand and staff will continue efforts to establish and provide online promotion of the items in our Souvenir Shop.

• Business Outreach and Hospitality: The Agency will continue to promote and

provide local and prospective companies with the opportunity to attend Quakes baseball games as Agency guests.

• Toll-Free Phone Line: The Agency will continue to offer its toll free phone line in

an effort to make the Agency more accessible to its clients.

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C. Capital Improvements The Agency will continue to implement capital improvement projects to eliminate the physical and economic blighting conditions that have led to underutilization and lack of private investment in the project area. Activities may include: Public Infrastructure and Flood Control Improvements

• Hellman Avenue Storm Drain (Lower Reach): Staff will continue to work on finalizing construction on Phase I of this project, which is expected to be complete during the third quarter of 2011. The design on Phase II of this project is complete, and construction will begin pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Foothill Boulevard Improvements: Staff will work to finalize Phase II of this

project (Vineyard Ave. to bridge), which includes median improvements, street widening, sidewalk construction, landscaping, a pedestrian bridge, a street archway, and a Point of Interest Park to celebrate Historic Route 66. Staff will move forward with construction on Phase III of this project (bridge to Grove Ave.) pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• East Avenue Master Plan Storm Drain: Staff will proceed with construction on

this project, which is expected to be complete during the fourth quarter of 2011. This project will provide much need flood control improvements to residents and businesses within the Project Area.

• Upper Cucamonga Storm Drain and Hellman Ave. Widening Improvements: Staff

will continue to evaluate potential funding sources for this project. When completed, this project will provide much needed flood protection for businesses and residences within the project area.

• I-15/Base Line Interchange: Staff will work to finalize the environmental report

and design for this project by the first quarter of 2012. Staff will move forward with construction on this project pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Archibald Avenue Storm Drain & Street Improvements: Staff will continue to

work on the design phase of this project, which includes the pavement rehabilitation and installation of a storm drain along Archibald Avenue, from Base Line Road south to Foothill Boulevard. The construction on this project will begin pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Etiwanda Avenue Grade Separation: Staff will continue to prepare for the design

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and construction phases of this project, which are pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding.

• Haven Avenue Median Island Retrofit: Staff will continue to prepare for

construction on this project, which will begin pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27 and the future of Redevelopment Agency funding. This project will provide retrofit improvements and the installation of low water landscaping to the median islands on Haven Avenue from 4th Street north to the 210 Freeway.

Community & Cultural Facilities

• Corporate Yard Expansion: Staff will continue to move forward with construction on this project, which includes necessary improvements to a crucial facility that provides valuable services that prevent blight within the project area. Construction on this project is expected to be complete during the second quarter of 2012.

• Pacific Electric Trail: Staff will work to finalize construction on Phase IV of this

project, which will connect the trail from Amethyst Ave. west to Grove Ave. This is the final phase of the project and is expected to be completed by the fourth quarter of 2011 with the completion of the new bridge over Foothill Blvd.

• Neighborhood Park @ 9th & Madrone: Agency staff will continue to work with the

Community Services Department on the design phase of this project and will begin demolition of the existing site structures pending the outcome of the CRA vs. Matosantos lawsuit regarding AB 1X 26/27. The Agency will also explore future opportunities to acquire additional land to expand on the size of the park. When completed, the project will provide open recreational space for the residents of southwest Cucamonga.

• Historic Preservation: Construction on the improvements to the Etiwanda Train

Depot property, which include roof repair, lead paint and asbestos removal, and plumbing and electrical repairs, will begin pending the outcome of the CRA vs. Matsantos lawsuit regarding AB 1X 26/27. Once complete, this project will serve as a museum and trail head rest stop for the Pacific Electric Trail. The Agency will also evaluate opportunities to support additional Historic Preservation Programs during the 2011/12 fiscal year.

Fire & Public Safety Facilities

• Fire Station #177/Demens Basin Project: Staff will continue to support the Fire Protection District on the construction of this project, which is expected to be complete during the fourth quarter of 2011.

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• San Bernardino Rd. Fire Station #172 Relocation: Staff will continue to work with the Fire Protection District to relocate the San Bernardino Road Fire Station #172. Pre-construction activities will iinclude the demolition of the existing structures and grading of the property.

D. Workforce Housing The Agency will continue to seek opportunities to expand and maintain the City’s supply of affordable housing through the leveraging of opportunities with local non-profits and through county, state and federal programs. The Agency will continue to explore opportunities for development of land-banked parcels.

• First-Time Homebuyers Program: Staff will continue to contract with

Neighborhood Housing Services (NHS) to help administer the First Time Homebuyer program and will conduct annual verification of the participants to ensure compliance with the program’s rules and regulations. Staff will begin accepting new applicants for the program pending the outcome of the CRA vs. Matosantos lawsuit and the future of Redevelopment Agency funding.

• Multi-Family Housing Site Visitation Program: The Agency will continue with the

annual site visiatation program to assist in physically monitoring its multi-family housing investments.

• Mobile Home Rental Assistance Program: Staff will continue its implementation

of the Mobile Home Rental Assistance Program, and will work to promote the program and identify mobile home residents that are eligible for assistance under the programs guidelines.

• Mobile Home Accord: The Mobile Home Accord acts as a rent stabilization

agreement between the City and the mobile home park owners by limiting how much the park owners can raise space rents based on the Consumer Price Index (CPI). Agency staff will continue to serve as a liaison between the mobile home park owners and the park residents throughout the remaining term of the Accord, which is set to expire in 2015.

• Foreclosure Prevention Assistance Workshops: Staff will continue to evaluate

opportunities for hosting additional Foreclosure Prevention Assistance Workshops during the 2011/12 fiscal year.

• San Bernardino County Homeless Partnership: Staff will continue its partnership

with the County of San Bernardino and other cities and implement the 10-year strategic plan to end homelessness in San Bernardino County and provide services and resources to the County’s homeless population.

• Neighborhood Stabilization Program (NSP): The Agency will continue working

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with the Planning Department to rehabilitate the three homes that were purchased with NSP funds. Once the improvements are complete, these three homes will be sold to low and moderate income families participating in the First-Time Homebuyer Program. Staff will also continue to evaluate additional opportunities to assist local nonprofit agencies that provide safe and affordable housing with the remainder of the City’s NSP funds.

• Crime Free Multi-Family Housing Program: The Agency will continue to facilitate

the participation of its housing partners in the City’s Crime Free Multi-Family Housing Program, which provides property managers and owners with instruction on how to administer the eviction process, establish fair tenant screening, provide a safe living environment for all tenants, and improve working relationships with law enforcement.

VI. Audit for Fiscal Year 2010/11 In accordance with California Health and Safety Code, Section 33080.1(a), the Rancho Cucamonga Redevelopment Agency contracted with the firm of Lance, Soll, & Lunghard, Certified Public Accountants, to complete an examination of the financial records and transactions of the Agency for the year ending June 30, 2011. This financial audit, as prepared by the auditor and submitted to the Redevelopment Agency, and is included as a part of this report.

VII. Statement of Indebtedness Fiscal Year 2011/12