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2005-01
F� RESOLUTION NO. CRA-2005-01 A RESOLUTION OF THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY, ADOPTING A FIVE-YEAR IMPLEMENTATION PLAN FOR THE GRAND TERRACE REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Plan ("Plan") for the Grand Terrace Redevelopment Project Area ("Project Area") of the Grand Terrace Community Redevelopment Agency("Agency)was approved by the City of Grand Terrace City Council by Ordinance No. 25, adopted September 27, 1979; and WHEREAS, the Plan was subsequently amended on July 15, 1981 by Ordinance No. 52, on July 22, 1999 by Ordinance No. 187, on September 12, 2002 by Ordinance No. 202, and July 22, 2004 by Ordinance No. 212; and WHEREAS, Section 33490(a)(1)(A) of the California Community Redevelopment Law, Health and Safety Code 33000 et. seq. ("Law") requires all redevelopment agencies to adopt an implementation plan every five years, following a noticed public hearing; and WHEREAS, Section 33490(a)(1)(A) requires that the Implementation Plan contain the specific goals and objectives of the agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 of Law; and WHEREAS, pursuant to Section 33490 of the Law, the Agency has prepared a 2004-05through 2008-09 Implementation Plan forthe Project Area, as contained herewith as Exhibit A; and WHEREAS, the Agency has conducted a duly noticed public hearing; NOW, THEREFORE,THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The five year Implementation Plan for the Grand Terrace Redevelopment Project Area is hereby approved and adopted in the form attached herewith. SECTION 2. This approval and adoption of the Implementation Plan does not constitute approval or any specific program, project or expenditure, and does not change the need to obtain any required approval of a specific program, project,or expenditure from the Agency or City. PASSED, APPROVED AND ADOPTED this 131h day of January, 2005. "Mayor the City of Grand Terrace ATTEST: City Clerk of the City of0rand Terrace I, BRENDA STANFILL, City Clerk of the City of Grand Terrace, do hereby certify that Resolution No.2005-01 was introduced and adopted at a regular meeting of the Grand Terrace Community Redevelopment Agency held on the 131h day of January, 2005, by the following vote: AYES: Agency Members Hilkey, Garcia, Miller; Chairman Ferre - NOES: None ABSENT: Vice-Chairman Cortes ABSTAIN: None Brenda Stanfill, City OI'erk Approved as to form: City Attorney FIVE YEAR IMPLEMENTATION PLAN GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY . -RSG INTELLIGENT COMMUNITY DEVELOPMENT GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05.through 2008-09 ABOUT:THIS. IMPLEMENTATION PLAN In fulfillment of Article 16.5 of California Community Redevelopment Law, the Grand Terrace Community Redevelopment Agency, has prepared this Implementation Plan for the Grand Terrace Redevelopment Project Area.. Included in this document are the .Agency's anticipated redevelopment and affordable housing program for 2004-05 through 2008-09. The implementation plan document conforms to the City's General Plan and has been prepared according to guidelines established in the programs and goals outlined in the Housing Element of the General Plan. . . Contents About this Implementation Plan Contents........................................................................................................................1 Aboutthe Project Area .....................................................................................................2 Recent Accomplishments .................................................................................................3 Redevelopment Plan Goals..............................................................................................4 Proposed Redevelopment Program.................................................................................6 Proposed Affordable Housing Program .........................................................................8 Housing Program"Compliance Objectives ...................................................................10 HousingProduction.....................................................................................................10 Replacement Housing.......................................:.......................................7.................12 Expenditures by Household Types.............................................................................13 Page 1 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09 ABOUT THE PROJECT AREA The 2,365-acre Grand Terrace Community Redevelopment Project Area is, comprised, of two parts: an initial'640-acre Project Area established by City Council Ordinance No. 25 on September.27, 1979 and the remainder of the City which was placed into the Project Area by.an amendment to the Redevelopment Plan enacted.by Ordinance No. / 52 on July 15, 1981. As such; City of Colton x the entire City limits are located within. the, Project Area, which o ashington st allows the Grand Terrace Community Development. Agency . to. embark .on 1 Co. infrastructure, economic s development, affordable housing, and other initiatives to mitigate blight in the community. 0. a Redevelopment in the Project Area has been responsible .for development of much . of ,the- City's public infrastructure, preservation of the community's supply of affordable housing .and development of new affordable residential.properties, and expansion of recreational and community facilities. The.Redevelopment Plan provides the Agency the resources to finance and complete these projects without burdening property owners or altering General Plan land use policies. The Agency has the authority to complete redevelopment projects for the next 13 years, until the Redevelopment Plan's effectiveness.terminates in July 2017. Notable Timeframes . . What is There? Who is.There? Redevelopment Plan Adopted 1979 2,365 Acres 11,626 Residents Expires 2017 LAND USES. ETHNICITIES Implementation Plan 2004-05 Other Blac4c�� other Open t' t0 Space 4 l Asian 2008-09 \f __ i Residr Industri ntial Housing Compliance Plan 2004-05 aI White (For affordable housing program to Corn Latin planning) 2013-14 erc�al Page 2 GRAND'TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09 RECENT ACCOMPLISHMENTS In the last five years, the Agency has championed many successful projects and 'programs in the Project Area:. • Multipurpose Community Facility Project: In partnership with the Colton Joint Unified School District, the Agency facilitated the development of a joint use park facility to serve the needs of Terrace Hills Jr. High School and the creation of a lighted soccer park facility. The Richard Rollins Park features J2 :ac. of lighted and irrigated soccer fields with two walking tracks, one restroom building and one rest room/snack bar storage,building. It also includes.four large shade,structures with picnic facilities and two large playground facilities. • Public. Infrastructure.Projects: Over the past five years, the Agency has assisted the City's Capital Improvement Program by funding portions of infrastructure projects, including the _Rollins Park Renovation, Iowa/Main St. realignment and traffic signal, city street sign replacement, and acquisition of 60 ac. of land for construction of a high school and commercial retail development.' Outdoor.Adventure Center: The Agency is actively involved in the planning and financing of the Outdoor Adventure'Center project, a 123 ac. site adjacent to the northbound 1-215 between Barton Rd. and .Pico St. The Outdoor Adventure Center is a mixed-use commercial retail center, which provides retail sales.opportunities,.open space, and jobs with improvements to. circulation.from the I- 215 freeway. The:Agency anticipates that its.investments in public infrastructure and land acquisition for this project will stimulate economic development in the Project Area.' Senior Citizen Rental Housing Project: The Agency has initiated the development of 120. unit senior housing project designating. 96 units to very low low-, and' moderate income levels. In addition to providing housing a new Senior Center facility and adjoining park will be developed. This will be developed at.the existing site of the current senior Center and the parcel directly adjacent to Terrace View Elementary School. .Staff estimates that up to $14 Million may be expended on this project upon its completion in Winter 2006; $8.2 Million is estimated to be the Agency contribution to the project. • Highlands Apartment Covenant Extension: The Agency is currently in the process of negotiating the extension of affordability covenants on 111 low income units at this rental property. No Agency funds are anticipated to be expended to achieve this extension. • Purchase/Rehab/Resale Program: The Agency has continued annual implementation of this program that entails.purchasing dilapidated single family units and rehabilitation for resale to qualified . - low and moderate income households. Over the past five years, a total of 18 units benefited from this program. • Horne Improvement.Loan Program: The Agency also implements a program that provides loans to very low, low and moderate income households for rehabilitation projects. Over the past five years, 6 loans have been provided by the Agency. Page 3 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year.Implementation Plan 2004-05 through.2008-09. REDEVELOPMENT PLAN GOALS Adopted in 1979, the Redevelopment Plan establishes a variety of goals for redevelopment of the Project Area; these goals frame the near term redevelopment objectives for the Implementation.Plan period. The Redevelopment Plan goals are,listed below: Eliminate Blight: The elimination of blighting influences and the correction of environmental deficiencies in the Project Area CLEAN Strengthen.Commercial Use: Strengthen retail and other commercial functions. SHOP © Strengthen Economic Base: The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements. INVEST Improve Parking and Open Space: The provision of adequate land for,parking and open spaces. GROW Civic and Cultural Enhancement: Enhance the role of the City by strengthening civic, 9F community, and cultural functions. HELP Historical Preservation: .Preserve artistically, architecturally, and historically worthwhile structures and sites. PRESERVE Design Criteria: The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements that provide GROW unity and integrity to the entire Project. Strengthen Existing Housing: Strengthen and upgrade existing residential uses. LIVE Improve Utilities: Provide adequate streets, curbs, gutters, drainage facilities, and street lights and permit improved pedestrian and/or vehicular circulation in the Project Area. Cause 0? ACCESS Page 4 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09. the under-grounding of unsightly overhead utility lines. ' Page5 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05.through 2008-09 PROPOSED REDEVELOPMENT PROGRAM- Over' the next five years, the Agency plans to implement the following redevelopment projects and programs: The list below describes the projects proposed, what blighting conditions would be'eliminated, approximate costs, and the Redevelopment Plan goals that would be achieved'. Project/Description Preliminary Goals Cost Estimate Achieved Outdoor Adventure.Center $500,000 A 123 ad. site,adjacent to the northbound 1-215 between Barton and Pico: The Outdoor Adventure.Center,is a mixed-use commercial retail center which provides retail sales opportunities, and jobs with "EA" improvements to circulation from the 1-215 freeway. The Agency' Q anticipates that its investments in public infrastructure and,land acquisition for this project will stimulate economic development in the. INVEST Project Area. Completion of this project would assemble a large number of un- A utilized or.under utilized parcels into a coordinated retail commercial SHOP center with improved circulation to and from the freeway and the. creation,of a new road, Commerce Way, to allow alternate access to the project area: woaK Year(s):.......................................:............. 2004-051hrough 2007-08 . 0? ACCESS Town Square Infrastructure Improvements $300,000 A 16 ac. retail project providing a grocery store, restaurants, City library, and other retail uses CLEAN Completion of this project would assemble 14 vacant or under Q utilized parcels into a coordinated retail commercial center which provides retail sales.opportunities, a new City library, and jobs. INVEST Year(s):.....................................................:2004-05 through 2005-0.6 Or HELP SHOP ' Costs are subject to change, and completion of these projects may require future action by the Agency._ Page 6 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan - 2004-05.through 2008-09 Project/Description Preliminary Goals Cost Estimate . ., Achieved High School Infrastructure Improvements $800,000 A 50 ac.high school.project constructed by the Colton Joint Unified . School District will require infrastructure improvements for roads CLEAN circulation and signalization. Completion of this project will require additional public infrastructure . .for the high school. The completion of this project will allow students HELP to attend high school within.the City of-Grand Terrace currently.they are bused to the City of Colton.: ACCESS Total Preliminary Cost Estimate. $1,6009000 i I. i I Page 7 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05.through.2008-09 PROPOSED AFFORDABLE HOUSING PROGRAM Over the next five years, the Agency plans to.implement the following affordable housing projects and programs. The list below describes the projects proposed, what blighting conditions would be eliminated, approximate costs, and the Redevelopment Plan goals that would be achieved. Additionally; the Agency has estimated the number of affordable units that maybe assisted by each project and program.listed. Project/Description . Preliminary . Goals Cost Estimate Achieved' Senior Citizen Rental Housing Project .$8,200,000 The Agency is working with a developer to construct a 120 unit senior citizen rental project on Barton Road. The Agency is seeking to restrict occupancy of 96 of the 120 units to very low, low, and LIVE moderate income households. During the next 24 months, the. Agency will execute a memorandum of understanding with a developer, execute a development agreement, and construct the project. Completion of the project is anticipated for Winter 2006. Completion.of this project would eliminate factors hindering economically viable use. Year(s):..................................................... 2004-05 through 2005-06 Canal Street Condominium Project $3,200,000 The Agency is working with.a developer to construct a 10-unit condominium project on a 1-acre parcel owned by the Agency on Can Street. When complete, 2 of the affordable units would be LIVE affordable to low and moderate income households Completion of this project would eliminate factors hindering economically viable use. Year(s):..................................................... 2004-05 through 2005-06 Purchase/Rehab/Resale Program $480,000 This continuing program involves the acquisition and rehabilitation of dilapidated units throughout the,community. Once the Agency completes rehabilitation work, the units are sold to eligible low and LIVE moderate income households. Based on an average subsidy of $160,000 per unit, the Agency anticipates that over the next five years approximately.3 units may be assisted by this program. Completion of this project would eliminate unsafe and unhealthy buildings. Year(s):..................................................... 2004-05 through 2008-09 Page 8 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09 Project/Description Preliminary Goals Cost Estimate , _ : Achieved Home Improvement Loan Program $600,000 The Agency's Home.Improvement Loan Program provides eligible low and moderate income.households with second trust deed mortgages, which can either be deferred or payable in,monthly LIVE installments at low interest rates, to fund minor rehabilitation expenses. Based on an average subsidy of$30,000 per unit, the Agency anticipates that over the next five years approximately 20 units may be assisted by this program. Completion of this project would.eliminate unsafe and unhealthy buildings. Year(s):..................................................... 2004-05 through 2008=09 Total Preliminary Cost Estimate $12,480,000 I i . Page 9 GRAND TERRACE REDEVELOPMENT PROJECT AREA 'Five Year Implementation Plan 2004-05.through.2008-09 HOUSING PROGRAM COMPLIANCE OBJECTIVES This section of the Implementation.Plan. addresses specific requirements in State law with respect to prior affordable housing activities and the anticipated housing program in the future. Redevelopment. agencies use implementation plans to establish ten-year objectives to achieve compliance with State law in its affordable housing programs. These housing goals generally fall into three categories: • Housinq Production -based on the number of housing units constructed or substantially rehabilitated over a ten year period, a redevelopment agency is to ensure that a percentage of these units are affordable to low- and moderate- income households. • Replacement Housina - another legal obligation for redevelopment agencies to ensure that any housing units destroyed .or removed as a result of an Agency redevelopment project are replaced within four years. • Expenditures by Household Tvpes —specific requirements on the amount of housing set-aside funds an agency must spend over a 10 year period on housing affordable to very low- income households, low- income households, and housing for residents under the age of 65. The housing program goals are described below. Housing Production To estimate the number of housing units that need to be affordable to low- and moderate- income households, the Agency estimated the total number units to be constructed or substantial rehabilitated in the Project Area and applied formulas established in State law. The chart below summarizes the production goals over various time periods as required by Redevelopment Law. The number rof affordable units required is based on statutory thresholds, and the Agency is responsible for ensuring that the appropriate number of affordable units is created during a ten year period. Page 10 GRAND-TERRACE REDEVELOPMENT PROJECT AREA Five Year.lmplementation Plan 2004-05 through 2008-09 Actual and Projected Housing Production Needs.by Time Period.. .Time Period Actual/Assumed Housing Units Required Constructed and Substantially. Affordable Units /1 Rehabilitated in.Project.Area. Total Very Low. Prior to 2004-05 1,459 220 88 10 Year.Forecast 130, 20 p . 8 . 2004-05 to 2008-09 130 , 20 8 2009-10 to 2013-14 0. . 0 . 0 ,Redevelopment Plan Duration 1,589 240 96 1981 to.2017 Notes: 1/ With the exception of 6 units developed or substantially rehabilitated by.the Agency prior to.2004-05, all required units based on 15. percent of actual/assumed units developed by 'entities other than Agency. (Production requirement for units developed by Agency is 30 percent). As shown in.the above table, the Agency anticipates a.need for 20 affordable units (including 8 very low-income units) to fulfill its production goals for the ten year period, and 240 affordable units (including 96 very low-income.units) over the duration of the Redevelopment Plan. Fulfillment of these productions goals is shown on the table below. i Page-11 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09 . Fulfillment.of Affordable Housing Production Requirements by Time Period Time Period Units Units Additional Net Surplus Required Produced Units Units Required Produced (see previous table) Total VL Total VL Total VL Total VL Prior to 2004-05 220 88 111 0 109 88 0 0 . Highland Apartments 111 0 10 Year Forecast 20 8 0 0 20 8 0. 0 Redevelopment Plan 240 96 111 0 129 96 0 0 Duration (1981 to 2017) As shown in the above table, the Agency has a preexisting housing production need as a result of construction in the Project Area prior to fiscal year 2004-05. The deficit of affordable units includes 109 units, of which 88 must be affordable to very low income households. An estimated 20 additional affordable units are anticipated for the ten year planning period beginning in 2004-05. As described earlier in this implementation plan, the Agency is actively engaged in programs to provide additional affordable units in the Project Area. At present, two projects (the senior rental project and the Canal-Street condominiums)to be constructed over the next 18 months would result in approximately 98 new affordable units to mitigate most of this deficit. It remains uncertain how many of these 98 units may be affordable to very low income households at this time. With the completion of these 98 units, the preexisting deficit of affordable units could be reduced from 109 units to 11 units, provided.that most of the units are affordable to very low income households. The Agency will continue to work diligently to fulfill the remaining affordable housing production deficit on an annual basis by facilitating creation of projects that feature long term affordability covenants. • Replacement Housing During the Implementation. Plan period, the Agency does not anticipate that any Agency.- assisted projects will result in the displacement or removal of housing units. Consequently, the Agency does not anticipate that any housing will need to be replaced at this time. Page 12 GRAND TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09 Expenditures by Household Types As the beginning of the Implementation Plan period (on July 1, 2004), the Agency's low and moderate income housing fund had a balance of $4,658,2552 available. Over the five year period ending on June 30, 2009, staff conservatively estimates that the Project Area will generate approximately$5,174,8993 in 20 percent housing set-aside revenue. Effective January 2002, expenditure of housing set-aside revenues is subject to certain legal requirements. At a minimum, the Agency's.-low and moderate income housing set-aside revenue is to be expended in proportion to the community's need for very low- and low- income housing, as well as the proportion of the population under the age of 65. Based on statistics from the Regional Housing Needs Assessment, used by local government to meet state requirement for affordable housing by category, and 2000 Census statistics, the following minimum thresholds for housing program expenditures would be required over the term of the Implementation Plan. Household Type Minimum Percentage of Housing Set-Aside Expenditures over Implementation Plan Very Low Income Households 31% Low Income Households 24% Households Under Age 65 89% Notes: Percentage of very low-and low-income household expenditures based upon City of Grand Terrace Regional Housing Needs Assessment in which 39 (31 percent) of the 125 affordable units in the City's housing needs are applicable for very.low-income households and 30 units (24 percent) are applicable for low-income households. Percentage of expenditures for housing to households under the age of 65 based on 2000 Census population for the City, wherein.11,626 residents (89 percent) of the total population of 10,381 are under the age of 65. No more than 11 percent of Project Area housing set-aside funds may be expended on housing for households age 65 and older. • Housing Set-Aside Expenditures Since January 2002. These proportionality, requirements affect expenditures over a .ten-year period, although the law permits .the compliance initially for a period beginning in January 2002'6nd ending in June°2014. The chart below documents the amount of low and moderate income housing fund revenue used since January 2002.for these income categories: 2 Source: 2003-04 Annual Report to State Department of Housing and Community Development 3 Source: RSG Page 13 GRAND'TERRACE REDEVELOPMENT PROJECT AREA Five Year Implementation Plan 2004-05 through 2008-09. Housing Expenditures and Proportionality Since 2002-02 Income Category 2001-02 2002=03 2003-04 Period to - Date Very Low Income $0 $0 $0 (0$00) 0 Low Income $0 $0 . $0 $0 (0%) Moderate Income $341,579 $0• $257,725 $596,304 l (100%) I Total Expenditures. $341,579 $0 I $257,725 $596,304 (100%) • Family Units Assisted by Housing Set-Aside Fund. State law also requires a recap of the number..of the projects assisted by the housing set-aside fund over the past implementation plan period, divided by family projects (open to all age groups) and senior projects (restricted to residents age 65 and older). The chart below summarizes these statistics by project from January 2002 (when proportionality requirements took effect) through December 2004. Project/Location Housing Units Assisted by Housing Set-Aside. Set-Aside Fund Expenditures (January 2002—December 2004) Ext. Very Low Mod. Tot. Low Low Family Projects $596;304 0 0 0' 5 5 (100%) Purchase, Rehab and $350,791 0 0 0 4 4 Resale Program Van Buren Tract $245,513 0 . 0 . 0 1 1 Senior Projects $0 0 0 0 0 0 (0%). Totals $596,304 0: 0: . 0: . ., 5 I 5 .: (100%):. . . . •. . Housing.Units Constructed During Prior Implementation Plan Without Housing Set- . Aside Funds. Since January 2000,:no other funding source was used by the Agency to construct affordable units featuring long term covenant restricted units (affordable units with covenants of at least 45 years for ownership housing or 55 years for rental housing). Page 14 t4i 60% - Grand Terrace Community Redevelopment Agency 22795 Barton Road Grand Terrace CA 92323-5295 (909) 824-6621 . C:IDO00ME-1\JOVERH-1\LOCALS-1\Temp\20051M-1.DOC Adopted 2005