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2010-01 i RESOLUTION NO. CRA-2010-01 A RESOLUTION OF THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY APPROVING THE DRAFT REDEVELOPMENT PLAN, PRELIMINARY REPORT AND DRAFT AMENDED OWNER PARTICIPATION RULES THE PROPOSED SIXTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AND DIRECTING THAT SUCH DOCUMENTS BE MADE AVAILABLE FOR PUBLIC INSPECTION, REVIEW AND COMMENT WHEREAS, the City of Grand Terrace Community Redevelopment Agency ("Agency") has prepared an Amended and Restated Plan in connection with the Sixth Amendment to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project ("Redevelopment Plan"); and WHEREAS, the purpose of the proposed Redevelopment Plan is to alleviate economic and physical blighting conditions in the Grand Terrace Community Redevelopment Project and to promote economic development; and { WHEREAS, Section 33344.5 of the California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("CRL") requires the Agency to transmit a Preliminary Report on the proposed Redevelopment Plan to all affected taxing entities within the Grand Terrace Community Redevelopment Project; and WHEREAS, the CRL Section 33345 provides that the Agency shall adopt and make available for public inspection rules to implement the operation of owner participation in connection with the Redevelopment Plan; and WHEREAS, the Agency has prepared Draft Amended Owner Participation Rules for Property Owners, Operators of Businesses and Business Tenants ("Owner Participation Rules") pursuant to CRL Section 33345; and WHEREAS, a Draft Environmental Impact Report ("EIR") is being prepared in connection with both the proposed Redevelopment Plan and the City's General Plan Update in accordance with the provisions of the California Environmental Quality Act ("CEQA"). The Draft EIR will be available to the public and transmitted to the affected taxing agencies in accordance with the provisions of the Health and Safety Code Section 33333.3 on January 12, 2010; and WHEREAS, the Agency desires to accept and approve the Redevelopment Plan, Preliminary Report, and Draft Owner Participation Rules applicable to the Grand Terrace Community Redevelopment Project Area. Page 2 of 3 NOW, THEREFORE, THE GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Agency approves the Amended and Restated Redevelopment Plan for the Grand Terrace Community Redevelopment Project, the Preliminary Report, and Draft Owner Participation Rules, attached as Exhibit A, Exhibit B and Exhibit C,respectively. SECTION 2. The Executive Director of the Agency shall make the Redevelopment Plan, Preliminary Report, and Draft Owner Participation Rules for the Grand Terrace Community Redevelopment Project Area available for public inspection,review and comments. SECTION 3. Staff is authorized and directed to make such transmittals as may be required pursuant to Sections 33344.5, 33346, and 33451.5 of the CRL. SECTION 3. Staff is hereby authorized to prepare a Report to City Council and the final text of the Amended and Restated Redevelopment Plan and other documents as required by Section 33352 and 33457.1 of the CRL. PASSED,APPROVED AND ADOPTED this 12th day of January, Chairman the Community Redevelopment Agency ATTEST: (46A�/ City Clerk of the City of Grand Terrace I, BRENDA MESA, City Clerk of the City of Grand Terrace, do hereby certify that Resolution'No. CRA-2010-0 1 was introduced and adopted at a regular meeting of the Grand Terrace Community Redevelopment Agency held on the 12th day of January, 2010,by the following vote: AYES: Agency Members Cortes, Miller and Stanckiewitz; Chairman Ferre NOES: Vipe-Chairman Garcia ABSENT: None ABSTAIN: None Page 3 of 3 - (6 W .,< Brenda Mesa, City Clerk Approved as to form: \' Io6q . City Attorney I J Exhibit A Draft Amended and Restated Redevelopment Plan Ci CITY OF GRAND TERRACE REDEVELOPMENT AGENCY 22795 BARTON ROAD, GRAND TERRACE, CA 92313 i N ` L fiu L G J 4 DRAFT AMENDED'AND RESTATED REDEVELOPMENT_'PLAN R S G City;of Grand Terrace Red°eVelopnent'Agency t t f_l' a Adopted September 27, 1979 (Ordinance No. 25) Amendment No. 1-January 17, 1980(Ordinance No. 31) 4.;:..; a.,;., •4,. Amendment No. 2-July 15, 1981 (Ordinance No. 52) ` ` Amendment No. 3-July 22, 1999 (Ordinance No. 187) Amendment No.4-September 12,2002 (Ordinance No.202) Amendment No. 5-July 22,2004 (Ordinance No.212) Amendment No. 6- 2010(Ordinance No._) ROSENOW SPEVACEK GROUP, INC. www.webrsg.com AMENDED AND RESTATED REDEVELOPMENT PLAN GRAND TERRACE COMMUNITY REDEVELOPMENT PLAN TABLE OF CONTENTS SECTION 1. (100) INTRODUCTION 1 SECTION 11. (2001 GENERAL DEFINITIONS 2 SECTION III. (300) PROJECT AREA BOUNDARIES 3 SECTION IV. (400) REDEVELOPMENT PLAN GOALS 3 SECTION V. (500) REDEVELOPMENT PLAN ACTIONS 4 (501) GENERAL 4 (502) PROPERTY ACQUISITION 5 (503) ACQUISITION OF REAL PROPERTY 5 (504) ACQUISITION OF PERSONAL PROPERTY, ANY OTHER INTEREST IN REAL PROPERTY, OR ANY IMPROVEMENTS IN REAL PROPERTY 5 (505) PARTICIPATION BY OWNERS AND PERSONS ENGAGED IN BUSINESS 5 (506) OWNER PARTICIPATION 5 (507) REENTRY PREFERENCES FOR PERSONS ENGAGED IN BUSINESS IN THE PROJECT AREA 6 (508) OWNER PARTICIPATION AGREEMENTS 6 (509) IMPLEMENTING RULES 7 (510) COOPERATION WITH PUBLIC BODIES 7 (511) PROPERTY MANAGEMENT 7 (512) PAYMENTS TO TAXING AGENCIES 7 (513) RELOCATION OF PERSONS DISPLACED BY A PROJECT 8 (514) RELOCATION PROGRAM 8 (515) RELOCATION BENEFITS AND ASSISTANCE 8 (516) DEMOLITION, CLEARANCE, PUBLIC IMPROVEMENTS,SITE PREPARATION AND REMOVAL OF HAZARDOUS WASTE 8 (517) DEMOLITION AND CLEARANCE 8 (518) PUBLIC IMPROVEMENTS 8 (519) PREPARATION OF BUILDING SITES 9 (520) REMOVAL OF HAZARDOUS WASTE 9 (521) REHABILITATION, MOVING OF STRUCTURES BY THE AGENCY,AND SEISMIC REPAIRS 9 (522) REHABILITATION AND CONSERVATION 9 (523) CLEARING OR MOVING STRUCTURES 9 (524) SEISMIC REPAIRS 9 (525) GRAFFITI REMOVAL 10 (526) PROPERTY DISPOSITION AND DEVELOPMENT 10 (527) REAL PROPERTY DISPOSITION AND DEVELOPMENT 10 (528) GENERAL 10 (529) PURCHASE AND DEVELOPMENT DOCUMENTS 10 (530) PERSONAL PROPERTY DISPOSITION 11 (531) PREVENTION OF DISCRIMINATION 11 • R S G INSERT FILEPATH HERE AMENDED AND RESTATED REDEVELOPMENT PLAN GRAND TERRACE COMMUNITY REDEVELOPMENT,PLAN -- , (532) REDEVELOPMENT 11 (533) DEEDS, LEASES, AND CONTRACTS 11 (534) LOW-AND MODERATE-INCOME HOUSING 12 SECTION VI. (600) USES PERMITTED IN THE PROJECT AREA 12 (601) MAPS AND USES PERMITTED 12 (602) PUBLIC USES 13 (603) PUBLIC STREET LAYOUT, RIGHTS-OF-WAY,AND EASEMENTS 13 (604) OTHER PUBLIC AND OPEN SPACE USES 13 (605) NONCONFORMING USES 13 (606) INTERIM USES 13 (607) GENERAL CONTROL AND LIMITATIONS 13 (608) NEW CONSTRUCTION 14 (609) REHABILITATION 14 (610) NUMBER OF DWELLING UNITS 14 (611) OPEN SPACE AND LANDSCAPING 14 (612) LIMITATIONS ON TYPE, SIZE, HEIGHT, NUMBER,AND PROPOSED USE OF BUILDINGS 14 (613) SIGNS 14 (614) UTILITIES 1-4 (615) SUBDIVISION OF PARCELS 14 (616) VARIATIONS 15 (617) DESIGN FOR DEVELOPMENT 15 (618) BUILDING PERMITS 15 SECTION VII. (700) METHODS FOR FINANCING THE PROJECT 15 (701) GENERAL DESCRIPTION OF THE PROPOSED FINANCING METHODS 15 (702) TAX INCREMENT REVENUE 16 (703) AGENCY BONDS 17 (704) OTHER LOANS AND GRANTS 17 (705) REHABILITATION LOANS, GRANTS,AND REBATES 17 SECTION VIII. (800) ACTIONS BY THE CITY 17 SECTION IX. (900) ADMINISTRATION AND ENFORCEMENT 18 SECTION X. (1000) PLAN LIMITATIONS 18 (1001) AMOUNT OF CUMULATIVE TAX INCREMENT REVENUE 18 (1002) AMOUNT OF BONDED INDEBTEDNESS OUTSTANDING AT ANY ONE TIME 18 (1003) TIME FRAME TO INCUR INDEBTEDNESS 19 (1004) DURATION OF THIS PLAN 19 (1005) TIME FRAME TO COLLECT TAX INCREMENT REVENUE 19 SECTION XI. (1100) PROCEDURE OF AMENDMENT 19 EXHIBIT A- PROJECT AREA MAP 20 RSG INSERT FILEPATH HERE AMENDED AND RESTATED REDEVELOPMENT PLAN GRAND TERRACE COMMUNITY REDEVELOPMENT PLAN EXHIBIT B- LEGAL DESCRIPTION 21 l STATEMENT AND DESCRIPTION OF LAND WITHIN THE ORIGINAL AREA 21 AREA 1 21 AREA 2 21 AREA 3 22 AREA 4 22 AREA 5 22 AREA 6 23 AREA 7 23 STATEMENT AND DESCRIPTION OF LAND WITHIN THE ADDED AREA 23 EXHIBIT C- LISTING OF PROPOSED PUBLIC FACILITIES AND INFRASTRUCTURE PROJECTS 25 PUBLIC INFRASTRUCTURE PROJECTS 25 COMMUNITY FACILITIES 27 EXHIBIT D- DIAGRAM OF CURRENT PERMITTED LAND USES 28 r-, r R S G INSERT FILEPATH HERE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT SECTION I. (100) INTRODUCTION This is the amended and restated Redevelopment Plan for the Grand Terrace Community Redevelopment Project ("Project'), located in the city limits of the City of Grand Terrace, California. It consists of the text (Sections 100 through 1100); the Map of the Grand Terrace Community Redevelopment Project Area ("Project Area") (Exhibit A), the legal description of the Project Area boundaries (Exhibit B), a listing of the proposed public facilities and infrastructure improvement projects (Exhibit C), and a diagram of current permitted land uses (Exhibit D). The Project Area consists of two constituent redevelopment project areas: ■ The original Grand Terrace Community Redevelopment Project Area adopted by the City Council of the City of Grand Terrace on September 27, 1979 by Ordinance No. 25 (hereinafter defined as the "Original Area"); and ■ The territory added to the Original Area in 1981 by Ordinance No. 52 adopted on July 15, 1981 ("Added Area'). The Plan has been amended on fivefew occasions since its adoption. Amendment No. 1 was adopted Ordinance No. 31 on January 17. 1980 and it provided for revenue allocations to certain taxina aaencies. Amendment No. 4-2 was adopted in 1981 for the purposes of including the Added Area into the Project Area. On July 22, 1999, the City Council adopted Amendment No. 2-3 by Ordinance No. 187 to authorize the use of eminent domain to acquire certain nonresidential property for a 12 year period. To clarify the description of the Plan's limit on the amount of tax increment revenue, the City Council adopted Amendment No. 43 by Ordinance No. 202 on September 12, 2002. Amendment No. 4-5 modified certain time limits in the Plan as stated herein by Ordinance No 212 on July 22, 2004. If adopted by the City Council, Amendment No. 5-6 to the Plan would result in the following: 1. Increase the Plan's cumulative tax increment revenue limit from $70 million (net of taxing agency payments)to approximately$200-225 million (net of taxing agency payments); I . 2. Increase the Plan's limit on the amount of bonded debt that may be outstanding at any one time,from $15 million to approximately$65 million; 3. Extend the duration of the Plan and time limit to collect tax increment revenue by seven years, pursuant to Health and Safety Code Sections 33333.6(a), 33333.6(b), and 33333.6(e)(2)(C); 4. Replace the description of land uses in the Plan (as previously contained in Section IV. Uses Permitted in the Project Area, pp. 33-42) with language that directly refers to the City's General Plan, zoning ordinance, and other applicable land use policies and standards, as they exist today or are hereafter amended. 5. Amend and restate the Redevelopment Plan to incorporate the prior amendments into a single document. This Plan has been prepared by the City of Grand Terrace Redevelopment Agency("Agency") pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.), the California Constitution, and all applicable laws and ordinances. This Plan provides the Agency with powers, duties, and obligations to implement the program generally formulated in this Plan for the redevelopment, rehabilitation, and revitalization of the Project Area. This Plan does not present a specific plan or establish priorities for specific projects for the redevelopment, rehabilitation, and revitalization of any particular area within the Project Area. Instead, this Plan presents a process and a basic framework within which specific development plans will be presented, priorities for 1 specific projects will be established, and specific solutions will be proposed, and by which tools are provided to the Agency to fashion, develop, and proceed with such specific plans, projects, and solutions. GRSG 1 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT Many of the requirements contained in this Plan are necessitated by and in accordance with statutory provisions in effect at the time of adoption of this Plan. Such statutory provisions may be changed from time to time. In the event that any such statutory changes affect this Plan's terms, and would be applicable to the Agency, the Project Area, or this Plan, the terms of this Plan that are so affected shall be automatically superseded by such statutory changes, to the extent necessary to be in conformity with such statutory changes (and all other terms of the Plan shall remain in full force and effect). SECTION II. (200)GENERAL DEFINITIONS The following definitions will be used generally in the context of this Plan unless otherwise specified herein: 1. "Added Area" means the territory added to the Project Area by Ordinance No. 52 adopted on July 15, 1981. 2. "Agency' means the City of Grand Terrace Redevelopment Agency. 3. Annual Work Program"means that portion of the Agency's annual budget that sets forth programs and goals to be accomplished by the Agency during the fiscal year. 4. "City'means the City of Grand Terrace, California. 5. "City Council"means the legislative body of the City. 6. "County' means the County of San Bernardino, California. 7. "Disposition and Development Agreement' means an agreement between a developer and the Agency that sets forth terms and conditions for improvement and redevelopment. 8. "General Plan" means the General Plan of the City,the comprehensive and long-term general plan for the physical development of the City, as it exists today or is hereafter amended. 9. "Legal Description" means the metes and bounds legal description of the Project Area attached hereto as Exhibit B. 10. "Map"means the map of the Project Area attached hereto as Exhibit A. 11. "Method of Relocation" means the methods or plans adopted by the Agency pursuant to Sections 33352(f) and 33411 of the Redevelopment Law for the relocation of families, persons, and businesses to be temporarily or permanently displaced by actions of the Agency. 12. "Original Area" means the original Grand Terrace Community Redevelopment Project Area established on September 27, 1979 by City of Grand Terrace City Council Ordinance No. 25. 13. "Owner"means any person owning fee title to, or a long-term leasehold interest in, real property within the Project Area. 14. "Owner Participation Agreement'means an agreement between the Agency and an Owner, which sets forth terms and conditions for use of property, and/or its improvement and/or its redevelopment as to a specific property. 15. "Participant' means an Owner who has entered into a Participation Agreement with the Agency. 16. "Person" means an individual(s), or any public or private entities. { PSG 2 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT 17. "Plan" means this amended and restated Redevelopment Plan for the Redevelopment Project, as amended by Amendment No. 5 adopted by City Council Ordinance No._on 2008. 18. "Project'means the Grand Terrace Community Redevelopment Project. 19. "Project Area" means the Grand Terrace Community Redevelopment Project Area, collectively the Original Area and the Added Area, which is the territory this Plan applies to, as shown on Exhibit A. 20. "Redevelopment Lave' means the California Community Redevelopment Law(Health and Safety Code, Sections 33000, et seq.) as it now exists or may be hereafter amended. 21. "State" means the State of California. 22. "State Law" means an enactment of State of California, and includes such regulations as have the force of law. SECTION III. (300) PROJECT AREA BOUNDARIES The boundaries of the Project Area are illustrated on the map attached hereto and incorporated herein as Exhibit A. The legal description of the boundaries of the Project Area is as described in Exhibit B attached hereto and incorporated herein. SECTION IV. (400) REDEVELOPMENT PLAN GOALS - This Plan is intended to achieve the following goals: 1. Eliminate and prevent the spread of blight and deterioration and to conserve, rehabilitate, and redevelop the Project Area in accordance with this Plan and future Annual Work Programs. 2. Provide for the enhancement and renovation of businesses within the Project Area to promote their economic viability. 3. Stimulate investment of the private sector in the full development of the Project Area. 4. Promote public improvement facilities, which are sensitive to the unique environmental qualities of the Project Area. 5. Provide adequate roadways to correct street alignment problems,to provide adequate circulation and access to highways. 6. Encourage cooperation and participation of property owners, business persons, public agencies, and community organizations in the revitalization of the Project Area. 7. Provide needed improvements to the community's recreational, cultural, and other community facilities to better serve the Project Area. 8. Expand the resource of developable land by making underutilized land available for development. 9. Renovate and restore sites characterized by deficiencies including, but without limitations, conditions of soil that render private development infeasible or impractical. 10. Achieve an environment reflecting a high level of concern for architectural, landscape, and urban ' design principles appropriate to the objectives of this Plan. • PSG 3 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT 11. Create physical buffers,which ameliorate the adverse effects of changing land uses along interfaces. - 12. Provide low and moderate income housing as is required to satisfy the needs and desires of the various age and income groups of the community, maximizing the opportunity for individual choice, and meeting the requirements of State Law. SECTION V. (500) REDEVELOPMENT PLAN ACTIONS (501) GENERAL The Agency proposes to alleviate and prevent the spread of blight and deterioration in the Project Area through: 1. The acquisition, installation, construction, reconstruction, redesign, or reuse of streets, utilities,curbs,. gutters, sidewalks, traffic control devices,flood control facilities, buildings, structures, parks, playgrounds, and other public improvements. 2. The rehabilitation, remodeling, demolition, or removal of buildings, structures, and improvements. 3. The rehabilitation, development, preservation, provision, or construction of affordable housing in compliance with State Law. 4. Providing the opportunity for participation by owners and tenants presently located in the Project Area and the extension of preferences to persons engaged in business desiring to remain or relocate within the redeveloped Project Area. 5. Providing relocation assistance to displaced occupants in accordance with applicable State Law. i 6. The development or redevelopment of land by private enterprise or public agencies for purposes and uses consistent with the objectives of this Plan. 7. The acquisition of real property, personal property, any interest in property, and improvements on the property by purchase, lease, option, grant, bequest, gift, devise, or any other lawful means. 8. Site preparation and development and construction of necessary off-site improvements. 9. Improving open space. 10. Managing property acquired by the Agency. 11. Providing financing for the assistance of commercial and industrial development that increases the economic base of both the Project Area and the City, and the number of temporary and permanent jobs. 12. The disposition of real property, personal property; any interest in property, and improvements on the property through methods such as sale, lease, exchange,subdivision,transfer, assignment, pledge, encumbrance, or any other lawful means of disposition. 13. Recommending standards to ensure that property will continue to be used in accordance with this Plan. 14. The closure or vacation of certain streets and the dedication of other areas for public purposes. 15. Providing replacement housing, as required. RSG 4 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT 16. Applying for, receiving, and utilizing grants and loans from federal or state governments or any other source. 17. Clearing or moving buildings, structures, or other improvements from any real property acquired by the Agency. To accomplish these actions and to implement this Plan, the Agency is authorized to use the powers provided in this Plan, and the powers now or hereafter permitted by the Redevelopment Law and any other State Law. (502) PROPERTY ACQUISITION (503) Acquisition of Real Property Except as specifically prohibited by this Plan, the Agency may acquire real property by any means authorized by law, including by purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, exchange, cooperative negotiations, or any other means authorized by law, 'AGludiRg emiReRt demaip. The Apencv is herebv empowered under this Plan to use eminent domain in order to execute the Plan. but only as to BroDertv which is not residentially zoned or as to DroDertv acouired with the consent of the Drooertv owner. Except as otherwise provided within, or otherwise provided by law, no eminent domain proceedings to acquire property shall be commenced after July 22, 2011, which is twelve (12) years from the date of adoption of the ordinance approving and adopting Amendment No. 2-3 to the Grand Terrace Community,Redevelopment Plan. (504) Acquisition of Personal Property, Any Other Interest in Real Property, or Any Improvements in Real Property Where necessary in the implementation of this Plan, the Agency is authorized to acquire personal property, any other interest in real property, and any improvements on real property including repurchase of developed property previously owned by the Agency by any lawful means. (505) PARTICIPATION BY OWNERS AND PERSONS ENGAGED IN BUSINESS (506) Owner Participation This Plan provides for opportunities for participation in the redevelopment of property in the Project Area by the owners of all or part of such property if the owners agree to participate in the redevelopment in conformity with this Plan. Participation methods include: (i) remaining in substantially the same location either by retaining all or portions of the property, or by retaining all or portions of the property and purchasing adjacent property from the Agency or joining with another person or entity for the rehabilitation or development of the Owner's property and, if appropriate, other property, or (ii) submitting to the Agency for its consideration another method of participation proposal pursuant to these Rules. An Owner who participates in the same location may be required, among other actions, to rehabilitate or demolish all or a part of his/her existing buildings. The Agency may also acquire the buildings only and then remove or demolish the buildings. Participation methods also include, but are not limited to, the Agency buying land and improvements at fair market value from Owners and offering other parcels for purchase and rehabilitation or development by such Owners, or offering an opportunity for such Owners to rehabilitate or develop property jointly with other persons or entities. Owner Participation opportunities shall be subject to and limited by factors and requirements including: GRSG 5 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT ■ The Participant must demonstrate to the satisfaction of the Agency that the Participant is financially capable and has the qualifications and experience to perform any and all development, construction, modification, rehabilitation, modernization, construction, land assembly, and/or acquisition of the subject property or properties in order that it will conform to the Plan, any specific plan or design guide, applicable zoning, building, and safety laws and regulations, and the redevelopment proposal, if any, contemplated by the Agency with respect to the subject property. ■ The Participant's proposed improvements and/or redevelopment conform or will conform to: the goals and objectives established by the Agency;the Plan; any applicable specific plan or design guide; applicable zoning, building, and safety laws and regulations; and the redevelopment proposal for the development site approved by the Agency. ■ The Agency retains its authority to determine in its sole discretion whether the Participant's proposed development conforms to and furthers the goals and objectives of the Plan and any specific redevelopment proposals on the basis of all the facts and circumstances pertaining to the Participant's proposed development. ■ The Agency shall consider whether the proposed owner participant development necessitates that the Participant and/or the Agency shall remove, relocate, and/or install public utilities and public facilities determined necessary by the Agency for the proposed development. ■ Consideration of the elimination and/or change of land uses, particularly nonconforming land uses as specified in City codes. ■ The Agency shall consider the need to realign, abandon,vacate, widen, or open public rights-of-way and the indirect effects of such acts. ■ Consideration of any reduction in the total number of individual parcels in the Project Area. ■ Consideration of whether the proposal involves land assembly and development of areas for public and/or private development in accordance with the Plan. (507) Reentry Preferences for Persons Engaged in Business in the Project Area The Agency shall extend reasonable preferences to persons who are engaged in business in the Project Area to relocate and reenter in business in the redeveloped area, if they otherwise meet the requirements prescribed by this Plan and the Agency's rules governing owner participation and re-entry. (508) Owner Participation Agreements Under an Owner Participation Agreement, the participant shall agree to rehabilitate, develop, or use the property in conformance with this Plan and be subject to the provisions hereof. In the Owner Participation Agreement, participants who retain real property shall be required to join in the recordation of such documents as are necessary to make the provisions of this Plan applicable to their properties. Owner Participation Agreements shall include appropriate remedies such as the ability of the Agency to declare the Owner Participation Agreement terminated and acquire the real property or any interest therein, and sell or lease such real property or interest therein for rehabilitation or development in accordance with this Plan in the event a participant breaches the terms of such Owner Participation Agreement. If conflicts develop between the desires of participants for particular sites or land uses, the Agency is authorized to establish reasonable priorities and preferences to persons who are engaged in business in the Project Area re-entering in business within the redeveloped area if they otherwise meet the requirements prescribed by the Plan. Where the Agency determines that a proposal for participation is not feasible, is not in the best interests of the Agency or City, or that redevelopment can best be accomplished without affording a participant an opportunity to execute an Owner Participation Agreement, the Agency shall not be required to execute an Owner Participation Agreement. GRSG 6 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (509) IMPLEMENTING RULES The provisions of Sections 505 through 508 of this Plan shall be implemented according to the rules adopted by the Agency prior to the approval of the Ordinance, which may be amended from time to time by the Agency. Such rules allow for Owner Participation Agreements with the Agency. (510) COOPERATION WITH PUBLIC BODIES Certain public bodies are authorized by State Law to aid and cooperate, with or without consideration, in the planning and implementation of activities authorized by this Plan. The Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate the implementation of this Plan with the activities of such public bodies in order to accomplish the purposes of redevelopment and to achieve the highest public good. Property of a public body shall not be acquired without its consent in accordance with State Law. The Agency shall seek,the cooperation of all public bodies that own or intend to acquire property in the Project Area. The Agency may impose on all public bodies the planning and design controls contained in and authorized by this Plan to ensure that present uses and any future development by public bodies will conform to the requirements of this Plan. The Agency is authorized, to the extent permissible by law, to financially (and otherwise) assist public bodies in the cost of public land, buildings, facilities, structures, or other improvements (within or outside the Project Area) where such land, buildings, facilities, structures, or other improvements are of benefit to the Project Area. (511) PROPERTY MANAGEMENT During such time as property, if any, in the Project Area is owned by the Agency, such property shall be under v; the management and control of the Agency. Such properties may be rented or leased by the Agency pending their disposition. (512) PAYMENTS TO TAXING AGENCIES The Agency may pay, but is not required to pay, in any year during which it owns property in the Project Area directly to any City, County, or district, including, but not limited to, a school district, or other public corporation for whose benefit a tax would have been levied upon such property had it not been tax exempt, an amount of money in lieu of taxes. In addition, to the extent required by State Law, the Agency shall remit payments to the affected taxing agencies in a manner consistent with Section 33607.5, Section 33676(b), and any other pertinent and applicable sections of the Redevelopment Law. All such amounts shall be calculated after the amount required to be deposited in the Low and Moderate Income Housing Fund has been deducted from the total amount of tax increment funds received by the Agency in the applicable fiscal year. Such payments shall be reduced in accordance with the provisions of Section 33607.5 of the Redevelopment Law or any other applicable statute. Such payments shall be the exclusive payments that are required to be made by the Agency to affected taxing entities for the duration of this Plan. Such payments may be subordinated to loans, bonds, or other Agency indebtedness as provided by the Redevelopment Law. The Agency may also pay to any affected taxing agency any amounts of money, which the Agency has found are necessary and appropriate to alleviate financial burden or detriment caused by the Project pursuant to an agreement executed prior to January 1, 1994. l � GRSG 7 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (513) RELOCATION OF PERSONS DISPLACED BY A PROJECT i (514) Relocation Program In accordance with the provisions of the California Relocation Assistance Law (Government Code Section 7260, et seq.) ("Relocation Assistance Act'), the Relocation Assistance and Real Property Acquisition Guidelines adopted and promulgated by the California Department of Housing and Community Development ("Relocation Guidelines") and the Agency shall provide relocation benefits and assistance to all "displaced" persons (including families, business concerns, and others) as may be required by law: Such relocation assistance shall be provided in the manner required by the Method of Relocation. (515) Relocation Benefits and Assistance The Agency shall provide all relocation benefits required by law and in conformance with the Method of Relocation, Relocation Guidelines, Relocation Assistance Act, the Redevelopment Law, and any other applicable rules and regulations. (516) DEMOLITION, CLEARANCE, PUBLIC IMPROVEMENTS, SITE PREPARATION AND REMOVAL OF HAZARDOUS WASTE (517) Demolition and Clearance The Agency is authorized, for property acquired by the Agency or pursuant to an agreement with the owner of property, to demolish, clear or move buildings, structures, or other improvements from any real property as necessary to carry out the purposes of this Plan. (518) Public Improvements To the greatest extent permitted by law, the Agency is authorized to install and construct, or to cause to be installed and constructed, the public improvements and public utilities (within or outside the Project Area) necessary to carry out the purposes of this Plan. Specifically,the Agency may pay for, install, or construct the buildings, facilities, structures, and other improvements identified in Exhibit C, attached hereto, and may acquire or pay for land required therefore. Additionally, the Agency is authorized to install and construct, or to cause to be installed and constructed, within or without the Project Area, for itself or for any public body or entity for the benefit of the Project Area, public improvements and public facilities, including, but not limited to: over or underpasses; bridges; streets; bikeways; curbs; gutters; sidewalks; street lights; sewers; storm drains; traffic signals; electrical distribution systems; natural gas distribution systems; wastewater treatment facilities; cable TV and fiber optic communication systems; water distribution systems; parks; windbreaks; trails; plazas; playgrounds; motor vehicle parking facilities; landscaped areas; schools; civic, cultural and recreational facilities; camping facilities; and pedestrian improvements. The Agency, as it deems necessary to carry out the Plan and subject to the consent of the City Council, as may be required by the Redevelopment Law, may 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 that is publicly owned either within or outside the Project Area, upon both the Agency and the City Council making the applicable determinations required pursuant to the Redevelopment Law. When the value of such land or the cost of the installation and construction of such building, facility, structure or other improvement, or both, has been, or will be, paid or provided for initially by the City or other public corporation, the Agency may enter into a contract with the City or other public corporation under which it agrees to reimburse the City or other public corporation for all or part of the value of such land or all or part of the cost of such building, facility, structure or other improvements, or both, by periodic payments over a period of years. Any obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purposes of carrying out this Plan. GRSG 8 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (519) Preparation of Building Sites Any real property owned or acquired by the Agency may be developed as a building site. In connection with such development it may cause, provide, or undertake or make provisions with other agencies for the installation or construction of streets, utilities, parks, playgrounds, and other public improvements necessary for carrying out this Plan. (520) Removal of Hazardous Waste To the extent legally allowable, the Agency may, in its sole discretion, take any actions, which the Agency determines are necessary, and which are consistent with other State and federal laws, to remedy or remove a release of hazardous substances on, under, or from property within the Project Area. (521) REHABILITATION, MOVING OF STRUCTURES BY THE AGENCY, AND SEISMIC REPAIRS (522) Rehabilitation and Conservation The Agency is authorized to rehabilitate and conserve, or to cause to be rehabilitated and conserved, any property, building, or structure owned by the Agency. The Agency is also authorized to advise, encourage, and assist (through a loan program or otherwise) in the rehabilitation and conservation of property, buildings, or structures in the Project Area not owned by the Agency to the extent permitted by the Redevelopment Law. The Agency is authorized to acquire, restore, rehabilitate, move, and conserve buildings of historic or architectural significance. The Agency is authorized to conduct a program of assistance and enforcement to encourage owners of property within the Project Area to upgrade and maintain their property consistent with this Plan and such standards as may be developed for the Project Area. The extent of rehabilitation in the Project Area shall be subject to the discretion of the Agency based upon such objective factors as: ■ Compatibility of rehabilitation with land uses as provided for in this Plan. ■ Economic feasibility of proposed rehabilitation and conservation activity. ■ Structural feasibility of proposed rehabilitation and conservational activity. ■ The undertaking of rehabilitation and conservation activities in an expeditious manner and in conformance with the requirements of this Plan and such property rehabilitation standards as may be adopted by the Agency. ■ The need for expansion of public improvements,facilities, and utilities. ■ The assembly and development of properties in accordance with this Plan. The Agency may adopt property rehabilitation standards for the rehabilitation of properties in the Project Area. (523) Clearing or Moving Structures As necessary in carrying out this Plan, the Agency is authorized to move, or to cause to be moved, any building structures or other improvements from any real property acquired. (524) Seismic Repairs For any project undertaken by the Agency within the Project Area for building rehabilitation or alteration in construction, the Agency may, by following all applicable procedures that are consistent with local, State, and federal law,take those actions which the Agency determines are necessary to provide for seismic retrofits. SRSG 9 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (525) Graffiti Removal Within the Project Area, the Agency after making the required findings may take any actions that it determines are necessary to remove graffiti from public or private property. (526) PROPERTY DISPOSITION AND DEVELOPMENT (527) Real Property Disposition and Development (528) General For the purposes of this Plan, the Agency is authorized to sell, lease for a period not to exceed 99 years, exchange, subdivide, transfer, assign, pledge, encumber by mortgage, deed of trust, or otherwise dispose of any interest in real property. To the extent permitted by law, the Agency is authorized to dispose of real property by negotiated lease or sale without public bidding after a noticed public hearing. Except as otherwise permitted by law, before any interest in property of the Agency acquired in whole or in part, directly or indirectly, with tax increment moneys is sold or leased for development pursuant to this Plan, such sale or lease shall be first approved by the City Council by resolution after a noticed public hearing, together with such findings as may then be required by State Law. The real property acquired by the Agency in the Project Area, except property conveyed by it to the City or any other public body, shall be sold or leased to public or private persons or entities for improvement and use of the property in conformance with this Plan. Real property may be conveyed by the Agency to the City, and where beneficial to the Project Area, to any other public body without charge or for an amount less than fair market value. All purchasers or lessees of property from the Agency shall be obligated to use the property for the purposes { designated in this Plan, to begin and complete improvement of such property within a period of time which the Agency fixes as reasonable, and to comply with other covenants, conditions, or restrictions to prevent speculation or excess profit taking in undeveloped land, including right of reverter to the Agency and to comply with other conditions which the Agency deems necessary to carry out the purposes of this Plan. During the period of redevelopment in the Project Area, the Agency shall ensure that all provisions of this Plan, and other documents formulated pursuant to this Plan, are being observed, and that development of the Project Area is proceeding in accordance with applicable development documents and time schedules. All development, whether public or private, must conform to this Plan and all applicable federal, State, and local laws, including without limitation the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. Such development must receive the approval of all appropriate public agencies. (529) Purchase and Development Documents To provide adequate safeguards to ensure that the provisions of this Plan will be carried out and to prevent the recurrence of blight, all real property sold, leased, or otherwise disposed of by the Agency, as well as all property subject to Owner Participation Agreements and Disposition and Development Agreements, shall be made subject to the provisions of this Plan by leases, deeds, contracts, agreements, declarations of restrictions, provisions of the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended, conditional use permits, or other means. Where appropriate, as determined by the Agency, such documents or portions thereof shall be recorded in the office of the Recorder of the County. Leases, deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants running with the land, rights of reverter, conditions subsequent, equitable servitudes, or any other provisions necessary to carry out this Plan. GRSG 10 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT The Agency shall reserve such powers and controls in Disposition and Development Agreements or similar agreements as may be necessary to prevent transfer, retention, or use of property for speculative purposes and to ensure that redevelopment is carried out pursuant to this Plan. The Agency shall obligate lessees and purchasers of real property acquired in the Project Area and owners of property improved as part of a redevelopment project to refrain from restricting the rental, sale, or lease of the property on the basis of race, color, religion, sex, marital status, ancestry, or national origin of any person. All deeds, leases, or contracts for the sale, lease, sublease, or other transfer of land in the Project Area shall contain or be subject to such nondiscrimination and non-segregation clauses as are required by Redevelopment Law. (530) Personal Property Disposition For the purposes of this Plan, the Agency is authorized to sell, lease for a period not to exceed 99 years, exchange, subdivide, transfer, assign, pledge, encumber, or otherwise dispose of personal property or any other interest in property by any lawful means. (531) PREVENTION OF DISCRIMINATION (532) Redevelopment The redeveloper shall comply with all State and local laws, in effect from time to time, prohibiting ;discrimination or segregation by reason of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, or occupancy of the property. Pursuant to the Redevelopment Law (Sections 33337 and 33435-33436), contracts entered into by the Agency relating to the sale, transfer, or leasing of land, or any interest therein acquired by the Agency within any survey area or redevelopment project, shall comply with the provisions of said sections in substantially the form set forth therein. All such contracts shall further provide that the provisions of said sections shall be binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument. (533) Deeds, Leases, and Contracts All deeds, leases, and contracts which the Agency proposes to enter into with respect to the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of any land in the Project Area shall contain the following nondiscrimination and non-segregation clauses as prescribed by Redevelopment Law, Section 33436: In deeds the following language shall appear: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group.of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub-lessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." In leases,the following language shall appear: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and ( subject to the following conditions: GRSG 11 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT - `That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish-or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sub- lessees, subtenants, or vendees in the premises herein leased." In contracts,the following language shall appear: `There shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land, nor shall the transferee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub-lessees, or vendees of the land. The foregoing provision shall be binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument." (534) LOW-AND MODERATE-INCOME HOUSING The Agency shall comply with all of the low- and moderate-income housing requirements of the Redevelopment Law, which are applicable to this Plan, including applicable expenditure, replacement, and inclusionary housing requirements, including but not limited to the following: No less than twenty percent of all tax increment funds allocated to the Agency shall be used for the purposes of increasing, improving, and preserving the supply of low- and moderate-income housing available at affordable housing costs to persons and families of low- or moderate-income and very low-income households that is occupied by these persons and families, unless the Agency makes annual findings by resolution as required under Redevelopment Law. The tax increment funds that are required to be used for increasing and improving the supply of low- and moderate-income housing shall be held in a separate Low- and Moderate-Income Housing Fund until used. The moneys in the Low- and Moderate-Income Housing Fund shall be used to increase, improve, and preserve the supply of low-and moderate-income housing. Whenever dwelling units housing persons and families of low- or moderate-income are destroyed or removed from the low- and moderate-income housing market as part of a redevelopment project, the Agency shall within four years of such destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low- or moderate-income an equal number of replacement dwelling units at affordable housing costs within the Project Area or within the jurisdiction of the Agency in accordance with Redevelopment Law. SECTION VI. (600) USES PERMITTED IN THE PROJECT AREA (601) MAPS AND USES PERMITTED The Map attached hereto as Exhibit A and incorporated herein illustrates the location of the Project Area boundaries. The land uses permitted by this Plan shall be those permitted by the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. A diagram of current permitted uses is presented on Exhibit D. GRSG 12 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (602) PUBLIC USES (603) Public Street Layout, Rights-of-Way, and Easements The public street system and street layout for the Project Area is illustrated on the Map identified as Exhibit A. The street system in the Project Area shall be developed in accordance with the General Plan, and all other state and local codes, guidelines, or master or specific plans as they now exist or are hereafter amended. Certain streets and rights-of-way may be widened, altered, realigned, abandoned, vacated, or closed by the City as necessary for proper development of the Project Area. Additional easements may be created by the Agency and City in the Project Area as needed for proper development and circulation. The public rights-of-way shall be used for vehicular, bicycle, and/or pedestrian traffic as well as for public improvements, public and private utilities and activities typically found in public rights=of-way. In addition, all necessary easements for public uses, public facilities, and public utilities may be retained or created. (604) Other Public and Open Space Uses Both within and outside of the Project Area, where an appropriate finding has been determined, the Agency may take actions to establish or enlarge public, institutional, or non profit uses, including, but not limited to, schools, Community centers, auditorium and civic center facilities, theatres and cultural facilities, criminal justice facilities, park and recreational facilities, parking facilities, transit facilities, libraries, hospitals, educational, fraternal, philanthropic and charitable institutions, or other similar associations or organizations. All such uses shall be deemed to conform to the provisions of this Plan provided that such uses conform to all other applicable laws and ordinances and that such uses are approved by the City. The Agency may impose such other reasonable restrictions as are necessary to protect development and uses in the Project Area. 1 (605) NONCONFORMING USES The Agency is authorized, but not required, to permit an existing use to remain in an existing building in good condition if the use does not conform to the provisions of this Plan, provided that such use is generally compatible with existing and proposed developments and uses in the Project Area. The Agency may take actions, but is not required, to authorize additions, alterations, repairs or other improvements in the Project Area for buildings which do not conform to the provisions of this Plan where, in the determination of the Agency, such improvements would be compatible with surrounding Project Area uses and proposed development. (606) INTERIM USES Pending the ultimate development of land by developers and participants, the Agency is authorized to use or permit the use of any land in the Project Area for interim uses. Such interim use, however, shall conform to General Plan and zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. (607) GENERAL CONTROL AND LIMITATIONS All real property in the Project Area is hereby made subject to the controls and requirements of this Plan. No real property shall be subdivided, developed, redeveloped, rehabilitated, or otherwise changed after the date of the adoption of this Plan except in conformance with the goals and provisions of this Plan and the regulations and requirements of the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended. The land use controls of this Plan shall apply for the periods set forth in Section 1000 below. The type, size, height, number, and use of buildings within the Project Area will be controlled by the General Plan and applicable RS 13 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended. (608) New Construction All construction in the Project Area shall comply with all applicable State and local laws in effect from time to time. In addition to the City land use regulations and requirements in the Project Area, additional specific performance and development standards may be adopted by the Agency to control and direct improvement activities in the Project Area. (609) Rehabilitation Any existing structure within the Project Area which the Agency enters into an agreement for retention and rehabilitation shall be repaired, altered, reconstructed, or rehabilitated in accordance with the applicable law and in such a manner that it will meet the following requirements: be safe and sound in all physical respects, be attractive in appearance, and not detrimental to the surrounding uses. (610) Number of Dwelling Units The General Plan shall regulate the total number of dwelling units in the Project Area. As of the date of adoption of the_ Ordinance amending this Plan, there are approximately 4, WO4.,458 dwelling units in the Project Area. (611) Open Space and Landscaping The approximate amount of open space to be provided in the Project Area is the total of all areas so / designated in the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended, and those areas in the public rights-of-way or provided through site coverage limitations on new development as established by the City and this Plan. Landscaping shall be developed in the Project Area to ensure optimum use of living plant material in conformance with the standards of the City. (612) Limitations on Type, Size, Height, Number, and Proposed Use of Buildings The limits on building intensity, type, size, height, number, and proposed use shall be established, in accordance with the provisions of the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended. (613) Signs All signs shall conform to the requirements of the City. Design of all proposed new signs shall be subject to the review of the City and any additional standards that may be adopted by the Agency to implement the goals of this Plan. (614) Utilities The Agency, in conformity with the City municipal code and City policies, shall require that all utilities be placed underground whenever physically possible and economically feasible. (615) Subdivision of Parcels No parcels in the Project Area, including any parcel retained by a participant, shall be consolidated, subdivided or re-subdivided without the approval of the City. • R S G 14 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (616) Variations The Agency is authorized to permit variations from the limits, restrictions, and controls established by this Plan. In order to permit any such variation,the Agency must determine all of the following: ■ The application of certain provisions of this Plan would result in practical difficulties or unnecessary hardships inconsistent with the general purposes and intent of this Plan. ■ There are exceptional circumstances or conditions applicable to the property or to the intended development of the property, which do not apply generally to other properties having the same standards, restrictions, and controls. ■ Permitting a variation will not be materially detrimental to the public welfare or injurious to property or improvements in the area. ■ Permitting a variation will not be contrary to the objectives of this Plan. No such variation shall be granted other than a minor departure from the provisions of this Plan. In permitting any such variation, the Agency shall impose such conditions as are necessary to protect the public health, safety, and welfare, and to assure compliance with the purposes of this Plan. (617) DESIGN FOR DEVELOPMENT One of the objectives of this Plan is to create an attractive and pleasant environment in the Project Area. Therefore, such plans shall give consideration to good design, open space, and other amenities to enhance the aesthetic quality of the Project Area. The Agency shall not approve any plans that do not comply with this Plan except as permitted by Section 616 of this Plan. Within the limits, restrictions, and controls established in this Plan, and subject to the provisions of Sections / 601 and .607 herein, the Agency is authorized to establish land use, heights of buildings, land coverage, setback requirements, design criteria, traffic circulation, traffic access, and other development and design controls necessary for proper development of both private and public areas within the Project Area. No new improvement shall be constructed and no existing improvement shall be substantially modified, altered, repaired, or rehabilitated except in accordance with this Plan and any such controls approved by the Agency. In the case of property, which is the subject of a Disposition and Development Agreement or an Owner Participation Agreement with the Agency, such property shall be developed in accordance with the provisions of such Agreement. (618) BUILDING PERMITS Any building permit that is issued for the rehabilitation or construction of any new building or any addition, construction, moving, conversion, or alteration to an existing building in the Project Area from the date of adoption of this Plan must be in conformance with the provisions of this Plan, any design for development adopted by the Agency, any restrictions or controls established by resolution of the Agency, and any applicable participation or other agreements. SECTION VII. (700) METHODS FOR FINANCING THE PROJECT (701) GENERAL DESCRIPTION OF THE PROPOSED FINANCING METHODS Upon adoption of this Plan by the City Council, the Agency is authorized to finance implementation of this Plan with assistance from local sources, the State and/or the federal government, property tax increment, interest income, Agency bonds, donations, loans from private financial institutions, or any other legally available source. GRSG 15 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT The Agency is also authorized to obtain advances, borrow funds, issue bonds or other obligations, and create indebtedness in carrying out this Plan. The principal and interest on such indebtedness may be paid from tax -` increment revenue or any other funds available to the Agency. Advances and loans for survey and planning. and for the operating capital for administration of this Plan may be provided by the City until adequate tax increment revenue or other funds are available to repay the advances and loans. The City or other public agency, as it is able, may also supply additional assistance through issuance of bonds, loans and grants, and in-kind assistance. Any assistance shall be subject to terms established by an agreement between the Agency, City, and/or other public agency providing such assistance. The Agency may issue bonds or other obligations and expend their proceeds to carry out this Plan. The Agency is authorized to issue bonds or other obligations as appropriate and feasible in an amount sufficient to finance all or any part of Plan implementation activities. The Agency shall pay the principal and interest on bonds or other obligations of the Agency as they become due and payable. (702) TAX INCREMENT REVENUE For the purposes of the collection of property tax revenue pursuant to this Plan, the effective date of the ordinance shall mean and refer to: ■ Original Area: October 27, 1979, which is 30 days following adoption of the Ordinance No. 25 on September 27, 1979 ■ Added Area: August 15, 1981, which is 30 days following adoption of Ordinance No. 52 on July 15, 1981. 1. All taxes levied upon taxable property within the Project Area each year by or for the benefit of the State, County, City, district, or other public corporation (hereinafter called"Taxing Agency'or"taxing agencies") after the effective date of the ordinance, shall be divided as follows: r 2. That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of said Taxing Agencies upon the total sum of the assessed value of the taxable property in the Project Area as shown upon the assessment roll used in connection with the taxation of such property by such Taxing Agency, last equalized prior to the effective date of the ordinance, shall be allocated to and when collected shall be paid to the respective Taxing Agencies as taxes by or for said Taxing Agencies on all other property are paid (for the purpose of allocating taxes levied by or for any Taxing Agency or Agencies which did not include the territory in the Project Area on the effective date of the ordinance but to which such territory has been annexed or otherwise included after such effective date,the assessment roll of the County last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the Project Area on said effective date). 3. That portion of said levied taxes each year in excess of such amount shall be allocated to and when collected shall be paid into a special fund of the Agency to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part,the Project and this Plan. Unless and until the total assessed valuation of the taxable property in the Project Area exceeds the total assessed value of the taxable property in the Project Area as shown by the last equalized assessment roll referred to in paragraph (1.) hereof, all of the taxes levied and collected upon the taxable property in the Project Area shall be paid to the respective Taxing Agencies. When said loans, advances, and indebtedness, if any, and interest thereon, have been paid, all monies thereafter received from taxes upon the taxable property in the Project Area shall be paid to the respective Taxing Agencies as taxes on all other property are paid. 4. That portion of the taxes in excess of the amount identified in paragraph (1.) above which is -� attributable to a tax rate levied by a Taxing Agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of and interest_on any bonded GRSG 16 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that Taxing Agency. This paragraph(3.) shall only apply to taxes levied to repay bonded indebtedness approved by the voters on or after January 1, 1989. The Agency is authorized to make pledges.as to specific advances, loans and indebtedness as appropriate in carrying out the Project. The portion of taxes allocated and paid to the Agency pursuant to subparagraph (2.) above is irrevocably pledged to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, the redevelopment program for the Project Area. (703) AGENCY BONDS The Agency is authorized to issue bonds and other obligations from time to time, if it deems it appropriate to do so, in order to finance all or any part of Plan implementation activities. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds or other obligations by reason of their issuance. The bonds and other obligations of the Agency are not a debt of the City, County, or the State; nor are any of its political subdivisions liable for them; nor in any event shall the bonds or obligations be payable out of any funds or properties other than those of the Agency; and such bonds and other obligations shall so state on their face. The bonds and other obligations do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. (704) OTHER LOANS AND GRANTS Any other loans, grants, guarantees, or financial assistance from the federal government, the State, or any other public or private source will be utilized, if available, as appropriate in carrying out this Plan. In addition, the Agency may make loans as permitted by law to public or private entities for any of its redevelopment purposes. (705) REHABILITATION LOANS, GRANTS, AND REBATES To the greatest extent allowed by State Law, the Agency and the City may commit funds from any source to rehabilitation programs for the purposes of loans, grants, or rebate payments for self-financed rehabilitation work. The rules and regulations for such programs shall be those which may already exist or which may be developed in the future. The Agency and the City shall seek to acquire grant funds and direct loan allocations from State and federal sources, as they may be available from time to time, for the carrying out of such programs. SECTION Vlll. (800) ACTIONS BY THE CITY The City shall aid and cooperate with the Agency in carrying out this Plan and shall take all reasonable actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the recurrence or spread in the Project Area of conditions of blight. Actions by the City may include, but shall not be limited to, the following: 1. Institution and completion of proceedings for opening, closing, vacating, widening, or changing the grades of streets, alleys, and other public rights-of-way, and for other necessary modifications of the streets,the street layout, and other public rights-of-way in the Project Area. Such action by the City shall include the requirement of abandonment and relocation by the utility companies of their \ operations in public rights-of-way as appropriate to carry out this Plan, provided that nothing in this SRSG 17 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT Plan shall be deemed to require the cost of such abandonment, removal, and relocation to be borne by others than those legally required to bear such costs. 2. Institution and completion of proceedings necessary for changes and improvements to publicly- owned parcels and utilities in the Project Area. 3. Performance of the above and of all other functions and services relating to public health, safety, and physical development normally rendered in accordance with a schedule which will permit the redevelopment of the Project Area to be commenced and carried to completion without unnecessary delays. 4. Imposition, whenever necessary and applicable, of appropriate design controls within the limits of this Plan in the Project Area to ensure proper development and use of land. 5. Provisions for administration/enforcement of this Plan by the City after completion of development. 6. The undertaking and completion of any other proceedings necessary to carry out the Project. 7. The expenditure of any City funds in connection with redevelopment of the Project Area pursuant to this Plan. 8. Revision of the City zoning ordinance, adoption of master or specific plans or execution of statutory development agreements to permit the land uses and facilitate the development authorized by this Plan. SECTION IX. (900)ADMINISTRATION AND ENFORCEMENT Upon adoption, the administration and enforcement of this Plan or other documents implementing this Plan shall be performed by the City and/or the Agency, as appropriate. The provisions of this Plan or other documents entered into pursuant to this Plan may also be enforced by litigation or similar proceedings by either the Agency or the City. Such remedies may include, but are not limited to, specific performance, damages, re-entry onto property, power of termination, or injunctions. In addition, any recorded provisions, which are expressly for the benefit of owners of property in the Project Area, may be enforced by such owners. SECTION X. (1000) PLAN LIMITATIONS The following financial and time limitations shall apply to this Plan: (1001) AMOUNT OF CUMULATIVE TAX INCREMENT REVENUE The number of dollars of taxes which may be divided and allocated to the Agency pursuant to Section 33670 of the Redevelopment Law from the Project Area shall not exceed $300-225 million. There shall be no such limit on the amount of tax increment revenues that may be divided and allocated to the Added Area. (1002) AMOUNT OF BONDED INDEBTEDNESS OUTSTANDING AT ANY ONE TIME The amount of bonded indebtedness, to be repaid in whole or in part from the allocation of taxes pursuant to Section 33670 of the Redevelopment Law, which can be outstanding at one time, shall not exceed $75-65 million. GRSG 18 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT (1003) TIME FRAME TO INCUR INDEBTEDNESS The.previous time limits to incur debt in the Original Area and Added Area were rescinded by Ordinance No. 212 on July 22, 2004; as such there are no time limits for incurring debt. (1004) DURATION OF THIS PLAN Except for the nondiscrimination and non-segregation provisions of this Plan, and recorded covenants implementing the same,which shall remain in effect in perpetuity, and except as otherwise expressly provided herein, the provisions of this Plan shall be effective, and the provisions of other documents formulated pursuant to this Plan shall be effective until September 27, 2022 for the Original Area and July 15, 2024 for the Added Area. After the expiration of the effective term of the Plan, the Agency shall have no authority to act pursuant to the Plan except to pay previously incurred indebtedness and to enforce existing covenants or contracts. However, if the Agency has not completed its housing obligations pursuant to Section 33333.8 of the Redevelopment Law, the Agency shall retain its.authority to implement requirements under 33333.8, including the ability to incur and pay indebtedness for this purpose, and-shall use this authority to complete these housing obligations as soon as is reasonably possible. (1005) TIME FRAME TO COLLECT TAX INCREMENT j EVEVUEQMSOff'ei] Except as otherwise provided herein or by Redevelopment Law, the time limitation for the receipt of tax increment and the payment of indebtedness with the tax increment pursuant to Section 33670 of the Redevelopment Law the termination date of revenue shall be September 27, 2032 for the Original Area and July 15,2034 for the Added Area. SECTION XI. (1100) PROCEDURE OF AMENDMENT This Plan may be amended by means of the procedure established in Sections 33450-33458 of the Redevelopment Law or by any other procedure hereafter established by law. i GPSG 19 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT EXHIBIT A-PROJECT AREA MAP GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA EXHIBIT A yew' VCEN (1 S ,N LE p/d Sj (J d 11f h �t j L S Z C L A I LfN P A Legend QGrand Teriam Redevelopment Project Area -,oaginalArea. r q -- 2 - - - -� --- - irrir ! = C _ t �oi �.__v N 'Nate:The Grand Terrace Community Redevelopment Project Area boundary comprises the entire City boundary. 0 0.125 0.25 0.5 0.75 1 RS G 1---I F i : 1 1 i Miles Sources:City GIS Department and Metroscan • RSG 21 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT j EXHIBIT B-LEGAL DESCRIPTION STATEMENT AND DESCRIPTION OF LAND WITHIN THE ORIGINAL AREA Area 1 A portion of the Southwest 1/4 of Section 34, Township 1 South, Range 4 West, San Bernardino Meridian and a portion of the Northwest 1/4 of Section 3, Township 2 South, Range 4 West, San Bernardino Meridian, County of San Bernardino, State of California, more particularly described as follows: BEGINNING at the Southwest Corner of Lot 5, Tract 6311, as recorded in Map Book 94, Pages 18 and 19 of Maps as recorded in the Office of the Recorder, County of San Bernardino, said point also being the Intersection of Sections 3 and 4, Township 2 South, Range 4 West, San Bernardino Meridian and Sections 33 and 34, Township 1 South, Range 4 West; thence South along the Easterly boundary of said Section 4 1530 feet to a point, said point being on the City boundary of the City of Colton; thence East, North and West along the City limits of the City of Colton, through all its various courses to a point, such point also being the Northwest corner of Lot 37, Tract 6610, as recorded in Map Book 88, Pages 7 and 8 of Maps, County of San Bernardino; thence West 827.76 feet to a point; thence North 38.40 feet to a point; thence 556.50 feet to a point, said point also being on the Easterly line of Section 33, Township 1 South, Range 4 West; thence South 100 feet along said Easterly line to a point, said point being the most Northerly point of Lot 15, Tract 6311, as recorded in Map Book 94, Pages 18 and 19 of Maps, Office of County Recorder, San Bernardino County; thence Southeast, South and West along the Easterly and Southerly limits of Tract 6311, to the point of beginning. Area 2 �r That portion of Lots 1 to 6 inclusive and Lots 15 to 18 inclusive of Hermosa Rancho, in the County of San Bernardino, State of California , as per map recorded in Book 13 of Maps, Page 25, Records of said County, and a portion of Lots 9 and 10, Dixon Tract, in the City of Grand Terrace, County of San Bernardino, State of California, as per map recorded in Book 13 of Maps, Page 8, in the office of the County Recorder of said County, and that portion of the West 1/2 of the Northeast 1/4 of Section 4, Township 2 South, Range 4 West, San Bernardino Meridian according to the Official Plat there-of, described as follows: BEGINNING at the Northeast corner of Lot 19, Tract 5921, as per map recorded in Book 74, Pages 62 and 63 of Maps, Records of said County, such point also being the intersection of the Southerly right-of- way line of Palm Avenue, 66 feet wide, and the Westerly right-of-way line of Canal Drive, 48 feet wide; thence Southerly and Westerly along the Westerly right-of-way of said Canal Drive to the intersection of the Westerly right-of-way of Canal Drive and the Northerly right-of-way of DeBerry Street, said point also being the Southeasterly corner of Lot 10, Tract 9545, as per map recorded in Book 132, Pages 51 and 52 of Naps, Records of said County; thence Southeasterly to the Northeast corner of Lot 45, Tract 9625, as per map recorded in Book 145, Pages 94 and 95 of Maps, Records said County, said point also being at the intersection of the Westerly right-of-way line of Canal Drive and the Southerly right-of-way line of DeBerry Street, 66 feet wide; thence West along said Southerly right-of-way line of DeBerry Street 796.45 feet to a point, said point also being the Westerly boundary of said Tract 9625; thence South along the West boundary of Tract 9625 on bearing of S 00 12' 00" E a distance of 628.67 feet to a point; thence N 890 46' 30" E 1030.68 feet to a point, said point being on the North-South centerline of Section 4, Township 2 South, Range 4 West, San Bernardino Meridian; thence South along said centerline 661 feet to a point, said point being on the East-West centerline of Section 4, Township 2 South, Range 4 West; thence East along said centerline 1322 feet to a point, said point being on the East line of the Northeasterly Quarter of Section 4, Township 2 South, Range 4 West, San Bernardino Meridian; thence North along said Easterly line of said Section 4 and its prolongation a distance of 2700 feet +/- to a point, said point being on the centerline of Palm Avenue, 66 SRSG 21 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT feet wide; thence North and West along the Easterly and Northerly boundaries and their prolongation of Tract J 9483, as recorded in Map Book 135, Pages 80-82 of Maps, San Bernardino County, a distance of 1,659 feet, plus or minus to the centerline of Barton Road, 100 feet wide; thence Southerly and Westerly along said centerline to its intersection with the centerline of Preston Street, 60 feet wide; thence Southerly along said centerline of Preston Street 890 feet, more or less, to a point, said point being the intersection of said centerline of Preston Street and the centerline of Palm Avenue, 66 feet wide; thence Easterly along said centerline of Palm Avenue 200 feet to a point; thence Southerly 33 feet to the point of beginning. Area 3 A portion of Lot 14, Section 5, Township 2 South, Range 4 West, San Bernardino Meridian, according to Map Showing Lands of the East Riverside Land Company, as per plat recorded in Book 6 of Maps, Page 44, Records of County of San Bernardino, State of California, and more particularly described as follows: BEGINNING at the intersection of the East boundary of said Lot 14, and the Northerly right-of-way line of DeBerry Street, 66 feet wide; thence N 0° 07' 36"W along said East boundary of Lot 14 629.66 feet to a point, said point being the Northeast corner of said Lot 14; thence West along the Northerly boundary of said Lot 14 576.63 feet to a point, said point being the Northwesterly corner of said Lot 14; thence South along the West boundary of said Lot 14 629.76 feet to a point, said point being the intersection of the West boundary of Lot 14, and the Northerly right-of-way line of DeBerry Street, 66 feet wide; thence East along the Northerly right-of-way line of said DeBerry Street 577.47 feet to the point of beginning. Area 4 Being a portion o Lot 45, Section 5, Township 2 South, Range 4 West, San Bernardino Meridian, in the County of San Bernardino, State of California, Per Map of East Riverside Land Company, as Recorded in ( Book 6, Page 44 of Maps, Records of said County, and Parcel 2, of Parcel Map 3502 in the County of San Bernardino, State of California, Per Map Recorded in Book 31, Page 43 of Parcel Maps, Records of said County, and more particularly described as follows: BEGINNING at the intersection of the Westerly line of Gage Canal right-of-way, 50 feet wide, and the Northerly right-of-way of Pico Street, 66 feet wide, thence N 430 43' 5T' E 197.41 feet; thence 117.94 feet through a curve concave Northwesterly and having a radius of 208.20 feet; thence N 110 17' 03' E 390.51 feet, to a point, said point being at the intersection of the Southerly line of Tract 9251, as recorded in Map Book 129, Pages 59 and 60, of Maps, Records of San Bernardino County; thence West along said Southerly line of Tract 9251 and the Southerly line of Tract 9495, as recorded in Map Book 133, Pages 78 and 79 of Maps, Records of San Bernardino County, a distance of 1163.92 feet to a point; thence S 000 03' 53" W 629.28 feet to a point, said point being on the Northerly right-of-way line of Pico Street, 66 feet wide; thence East along the Northerly right-of-way of said Pico Street 321.82 feet to a point; thence N 000 00' 25" F 289.00 feet; thence S 890 53' 02' E 139.00 feet; thence S 00' 00' 25"W 289.00 feet to the Northerly right-of-way line of Pico Street;thence East along the Northerly right-of-way line of Pico Street 436.98 feet to the point of beginning. Area 5 All that portion of Lot 29, East Riverside Land Company, in the County of San Bernardino, State of California, as per Map recorded in Book 6 of Maps, Page 44, Records of said County, described as follows: BEGINNING at the Southwest corner of said Lot 29, being the intersection of the North line of Van Buren Street, 66 feet wide, and the East line of Michigan Avenue, 66 feet wide; thence North 00 00' 08" East along the East line of said Michigan Avenue a distance of 111.40 feet to the true point of beginning: thence North 890 59' 08" East a distance of 355.0 feet; thence North 00 00' 08" East a distance of 386.39 feet;thence North 89' 59' 27" West a distance of 355.00 feet to the said East line of Michigan Avenue; thence South 00 00' 08"West a distance of 386.54 feet to the true point of beginning. • R S G 22 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT Area 6 A portion of Lot 3, Grand Terrace Tract, as recorded in Map, Book 11, Page 4 of Maps, San Bernardino County Recorder's Offices, and more particularly described as follows: BEGINNING at the intersection of tie Southerly lot line of said Lot 3, and the Easterly right-of-way of Gage Canal, 50 feet wide; thence East along said Southerly line of Lot 3, 1483 feet, more or less, to the Westerly right-of-way line of Mount Vernon Avenue, 66 feet wide; thence North, West and North along the Westerly right-of-way of Mount Vernon Avenue, 66 feet wide and 87 feet wide, 242.32 feet to a point; thence West along a line parallel to the Southerly lot line of said Lot 3, 612.20 feet to a point; thence North 190 50' 00"West 187.62 feet to a point;thence West along a line parallel to the Southerly lot line of Lot 3, 661.68 feet to the Easterly right-of-way of Gage Canal, 50 feet wide; thence South along the Easterly right-of-way line of Gage Canal 438.47 feet to the point of beginning. Area 7 A portion of the South 1/2 of Section 4, Township 2 South, Range 4 West, San,Bernardino Meridian, more particularly described as follows: BEGINNING at the intersection of the North - South centerline of Section 4, Township 2 South, Range 4 West, San Bernardino Meridian, and the dividing line between the Counties of Riverside and San Bernardino, thence North 0° 14' 41" East 810 feet to a point, said point being the true point of beginning; thence North 0° 14' 41" East 317.38 feet; thence South 890 41' 32"West 239.00 feet to a point; thence North 0° 14' 41 East 227.65 feet; thence North 890 41' 32" East 295.3 feet; thence North 210 04' 12" East 50.78 r feet; thence North 10'04' 12" East 44.08 feet;thence North 290 31'48"West 45.90 feet; thence North 320 06' 48"West 295.63 feet; thence North 06' 56' 48"West 173.82 feet; thence North 290 33' 49"West 120.25 feet; thence South 890 44' 12" West 488.5 feet.; thence South 00 15' 27' East 659.89 feet; thence South 00.11' 02" West 683.10 feet; thence North 890 51' 42" East 260.33 feet; thence North 0° 08' 18" West 180.00 feet; thence North 30° 51' 23" East 122.53 feet; thence 96.89 feet through a curve concave Northeasterly end having a radius of 200 feet; thence 221.51 feet through a curve concave Southwesterly and having a radius 160 feet;thence North 790 33'22" East 83.46 feet to the point of beginning. STATEMENT AND DESCRIPTION OF LAND WITHIN THE ADDED IAREAMSQffice2MSOffce3j The boundaries of the Added Area are shown on Exhibit"A"attached hereto and made a part hereof, and are described as follows: That portion of Townships 1 and 2 South, Range 4 West, San Bernardino Meridian, in the County of San Bernardino, State of California, described as follows: Beginning at the intersection of the West line of Terrace Avenue with the Westerly prolongation of the center line of Walnut Avenue, said point being also in the existing city limits of Colton; Thence leaving said city limits Westerly along said prolongation of the center line of Walnut Avenue to the center line of the Atchison, Topeka and Santa Fe Railroad; Thence Northerly along said center line to the existing city limits of Colton; Thence Easterly along said city limits and continuing along said city limits following all of its various courses to the West line of Lot 2, Subdivision of the Poole Tract, as per map recorded in Book 11 of Maps, page 40, records of said County; Thence leaving said city limits Southerly along said West line of Lot 2 to the center line of the Gage Canal; ( •. R S G 23 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT - Thence Easterly along said center line to the South line of said Poole Tract; Thence Easterly along said South line to the existing city limits of Colton; Thence Southwesterly along said city limits and continuing along said city limits, following all of its various courses to the San Bernardino and Riverside County line; Thence leaving said city limits Westerly along said county line to the existing city limits of Colton; Thence Northeasterly along said city limits and continuing along said city limits, following all of its various courses,to the POINT OF BEGINNING. Contains 3.4 square miles, and; That portion of Section 31, Township 1 South, Range 4 West, San Bernardino Meridian and Section 6, Township 2 South, Range 4 West, San Bernardino Meridian, in the County of San Bernardino, State of California, described as follows: Beginning at a point in the existing city limits of Grand Terrace, said point being the intersection of the West line of Terrace Avenue with the Westerly prolongation of the center line of Walnut Street, said point being also in the existing city limits of Colton; Thence Southerly along said city limits of Colton to the Easterly prolongation of the center line of Palm Avenue; Thence leaving the city limits of Colton Westerly along said prolongation and center line to a point which is Easterly 287.39 feet from the center tine intersection of Palm and Rosedale Avenues, said. point being also the Northerly prolongation of the East line of Parcel Map No. 844, as per map recorded in Book 8 of Parcel Maps, page 86, records of said County; Thence South 10' 50' 50" West, along said prolongation and East line, a distance of 313.72 feet to the Southeast corner of Parcel 2, said Parcel Map No. 844; i Thence West 288.69 feet along the South line of said Parcel 2 and its prolongation to the center line of Rosedale Avenue, said point being also in the existing city limits of Colton; Thence Northerly along said city limits and continuing along said city limits, following all of its various courses, to the center line intersection of Litton and Rosedale Avenues; Thence Easterly along said center line of Litton Avenue, a portion of which is in the city limits of Colton, and its prolongation to the existing city limits of Grand Terrace; Thence Southerly and Easterly along said city limits to the POINT OF BEGINNING. Contains 43.89 acres. PSG 24 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT EXHIBIT C—LISTING OF PROPOSED PUBLIC FACILITIES AND INFRASTRUCTURE PROJECTS PUBLIC INFRASTRUCTURE PROJECTS Improvements to Project Area public infrastructure are intended to alleviate traffic congestion and improve public safety, remove costly impediments to development, and upgrade infrastructure to contemporary standards to stimulate private development. The proposed traffic/circulation improvement projects shall include, but are not limited to, roadways, landscape, street lights, pedestrian walkways, bridges, interchanges, curbs, gutters, sidewalks, parking, street widening,traffic signals, over or underpasses, utility undergrounding, bicycle paths, street medians,trails, and trolley crossings. The proposed sewer and drainage improvement projects shall include, but are not limited to, monitoring systems, sewer parallels, drainage, sewer lines, wastewater treatment facilities, flooding systems, floor control dikes, and sewer systems. The proposed utility and communication improvement projects shall include, but are not limited to, electrical distribution systems, natural gas distribution systems; cable TV and fiber optic communication systems,water distribution systems, and windbreaks. Further compliance with General Plan, zoning standards, and environmental review may be necessary for these proposals to come forward. Projects include, but are not limited to,the following: 1. Sanitary Sewer System Improvements: ■ Regional Wastewater Control Facility Modification and Replacements ■ Regional Wastewater Control Facility Plant Expansion ■ Sanitary Pump Station Rehabilitation/Modification ■ Sanitary Separation ■ Sanitary System Deficiency Improvements ■ Sanitary System Repairs ■ Sanitary Telemetry ■ Sludge Removal and Reuse/Disposal 2. Storm Drain Projects ■ Storm Drain Alleviation-Repairs ■ Storm Pump Station Rehabilitation ■ Storm System Rehabilitation/Street Improvements ■ Storm System Improvements ■ Storm-water Telemetry 3. Street Projects ■ Alley Abandonment ■ Street Tree Planting ■ Railroad Crossing Protection ■ Street Construction and Replacement ■ Sidewalk, Curb, and Gutter ■ Steel Street Light Pole Replacement GRSG 25 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT ■ Street Light Installation ■ Street Lighting Upgrade ■ Street Name Sign Installation ■ Street Repair Program . ■ Street Resurfacing Program ■ Traffic Signal Control System ■ Traffic Signals-Modification ■ Traffic Signals-New ■ Utility Underground ■ Wheel Chair Ramps 4. Water Projects ■ Central Control System ■ Pipelines Project ■ Service System Additions ■ Service System Replacements ■ Aqueducts ■ Groundwater Monitoring Wells ■ Water Supply-New Wells ■ Water Supply Facilities-Well Rehab/Repair ■ Water System Expansions ■ Water Transmission Mains ■ Water Treatment Equipment ■ Well Replacement ■ Well/Reservoir Site Improvements ■ Minor Infrastructure Improvements 5. Public Facility Programs ■ Roof Replacement Program ■ Infrastructure Improvements ■ Park Reconstruction and Construction Community Center Construction, Rehabilitation, and Expansion ■ Pool Reconstruction and Construction ■ Library Construction Repairs/Rehabilitation ■ Play Equipment Replacements ■ Recreational Facilities Construction and Reconstruction ■ Tot Lots Full Replacements } RSG 26 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT COMMUNITY FACILITIES -" The proposed Community facilities improvement projects shall include, but are not limited to, parks, open spaces, schools, school facilities, fire and police facilities, communication systems, libraries, fire protection, cultural centers, Community centers, city maintenance facilities, plazas, recreational facilities, playgrounds, and civic center. Further compliance with General Plan, zoning standards, and environmental review may be necessary for these proposals to come forward. RSG 27 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT EXHIBIT D—DIAGRAM OF CURRENT PERMITTED LAND USES The following map presents the General Plan land use designations for the Project Area as currently proposed by the City of Grand Terrace General Plan Update. As these designations are subject to change; please refer to the General Plan for more information. Legend T �H sxda Lcw Deny Ro&da^=S� ©G:4.0 cm a f -F`.duysf liiMEN ' ' ...�. � 4 Ftnod�a n tn�sar� Fubt'a -- Kzs,de she utxe_lJsa Cfty of Grand Terrace Proposed land Use Map Elcharnbers Group the Exhibit2-2 o srnt.ca 240D 1,cx 4 W Feet • PSG 29 Exhibit B Preliminary Report i CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY 22975 BARTON ROAD, GRAND TERRACE, CA PRELIMINARY REPORT ON THE PROPOSED SIXTH AMENDMENT TO THE REDEVELOPMENT PLAN FOR THE GRAND ( • R S G TERRACE COMMUNITY REDEVELOPMENT PROJECT City of Grand Terrace Community Redevelopment Agency December 21, 2009 1 ROSENOW SPEVACEK GROUP, INC. www.webrsg.com INTRODUCTION .............................................................................................................................1 ReportContents.............................................................................................................................2 PlanAmendment Process.............................................................................................................2 SECTION A: REASONS FOR AMENDING THE REDEVELOPMENT PLAN..................................3 Project Area Location and Land Use...................:........................................................................3 Project Area History and Background........................................:.................................................3 Goals of the Redevelopment Plan................................................................................................4 CurrentConditions........................................................................................................................4 Reasons for Amending the Redevelopment Plan.........................................................................5 Increasing the Tax Increment Limit.........................................................:........................................5 Increasing the Bonded Indebtedness Limit.......................................................................................6 Rescinding Agency's Eminent Domain Authority.............................................................................. 6 Extending the Duration of the Redevelopment Plan.........................................................................6 Replacing the Description of Land Uses ..........................................................................................7 Amended and Restated Redevelopment Plan..................................................................................7 SECTION B: A DESCRIPTION OF THE BLIGHTING CONDITIONS PRESENT IN THE PROJECT AREA..............................................................................................................................................8 �- Introduction....................................................................................................................................8 Methodologyand Approach........................................................................................................ 10 Findings........................................................................................................................................ 10 Obsolete Design or Construction.................................................................................................... 18 Laying Out of Lots in Disregard to Physical Characteristics ...........................................................21 Deteriorated and Dilapidated Buildings..........................................................................................22 CrimeRates...................................................................................................................................30 SECTION C: A DETERMINATION AS TO WHETHER THE PROJECT AREA IS PREDOMINANTLY URBANIZED..................................................................................................32 SECTION D: A PRELIMINARY ASSESSMENT OF THE'PROPOSED METHOD OF FINANCING, INCLUDING ECONOMIC FEASIBILITY OF THE PLAN AMENDMENT AND THE REASONS FOR THE CONTINUED INCLUSION OF TAX INCREMENT...............................................................:.33 Introduction..................................................................................................................................33 Financial Assistance from City, State and/or the Federal Government...................................33 Lease or Sale of Agency-Owned Property.................................................................................33 Participation in Development......................................................................................................34 Property Tax Increment...............................................................................................................34 BondedDebt.................................................................................................................................34 OtherAvailable Sources..............................................................................................................35 Tax Increment Revenue Projections...........................................................................................35 —� Economic Feasibility Analysis....................................................................................................38 • R S G DOCUMENT ID 156506 CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY PRELIMINARY REPORT FOR THE SIXTH AMENDMENT Reasons for the Allocation of the Tax Increment SECTION E: A DESCRIPTION OF SPECIFIC PROJECTS THE AGENCY MAY PURSUE AND A DESCRIPTION OF HOW THE PROPOSED PROJECTS WILL IMPROVE OR ALLEVIATE BLIGHTING CONDITIONS IN THE PROJECT AREA...............:...................................................41 Non-Housing Fund.......................................................................................................................41 Public Facilities and Infrastructure..................................................................................................41 Obsolete Design or Construction....................................................................................................42 Physical Characteristics Remediation ............................................................................................42 Deterioration and Dilapidation........................................................................................................42 CrimeRates...................................................................................................................................43 HousingFund...............................................................................................................................43 ProjectCosts................................................................................................................................44 Summary......................................................................................................................................44 SECTION F: IMPLEMENTATION PLAN.......................................................................................45 SECTION G: NEIGHBORHOOD IMPACT REPORT.....................................................................46 Relocation ....................................................................................................................................46 TrafficCirculation........................................................................................................................46 - Environmental Quality.................................................................................................................46 j Availability of Community Facilities and Services ....................................................................47 Effect on School Population and Quality of Education 47 Property Taxes and Assessments..............................................................................................47 Low and Moderate Income Housing Program............................................................................47 APPENDIX A: IMPLEMENTATION PLAN ....................................................................................49 i qRSG CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY INTRODUCTION The City of Grand Terrace Community Redevelopment Agency("Agency") is proposing a Sixth Amendment to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project ("Sixth Amendment" or Plan Amendment"). If approved, the Sixth Amendment will modify time and financial limits of the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Area ("Redevelopment Plan") by: 1. Increasing the cumulative tax increment revenue limit in the redevelopment plan from $70 million (net of taxing agency payments)to approximately$225 million (net of taxing agency payments); 2. Increasing the limit on the amount of bonded debt that may be outstanding at any one time in the redevelopment plan from $15 million to approximately$75 million; 3. Pursuant to California Community Redevelopment Law, Health and Safety Code Section 33000, et. seq. ("Redevelopment Law") Sections 33333.6(a), 33333.6(b), and 33333.6(e)(2)(C), extending the effectiveness of the redevelopment plan and time limit to collect tax increment revenue by the following time frames: a. Original Grand Terrace Community Redevelopment Project Area ("Original Area") — extending plan effectiveness from July 15, 2017, to September 27, 2022, and time limit to collect tax increment from July 15, 2027, to September 27, 2032; b. Area added by the first amendment to the Grand Terrace Community Redevelopment Project Area ("Added Area")—extending plan effectiveness from July 15, 2017, to July 15, 2024, and time limit to collect tax increment from July 15, 2027,to July 15, 2034; 4. Rescinding Agency's authority to commence eminent domain within the Project Area, effective immediately following the effectiveness of the ordinance adopting the Sixth Amendment. 5. Replacing the description of land uses in the redevelopment plan (as previously contained in Section IV. Uses Permitted in the Project Area, pp. 33-42) with language that directly refers to the City's General Plan, zoning ordinance, and other applicable land use policies and standards, as they exist today or are hereafter amended; and 6. Amending and restating the redevelopment plan to incorporate the prior amendments into a single document. This Sixth Amendment is being proposed because the current limits will not allow the Agency to implement the projects and programs necessary to alleviate blight within the Project Area as described herein. It is estimated that the current financial limits of the Redevelopment Plan will only allow the Agency to collect tax increment revenue until fiscal year 2011-12 (based on conservative projections of assessed value growth) and all of that revenue is already pledged to outstanding obligations. Without this Sixth Amendment, the Agency will be unable to fund the projects and programs that are necessary to eliminate remaining blight. The increase in the bonded indebtedness limit and extension of the time limits for the Redevelopment Plan effectiveness and collection of tax increment are necessary to enable the Agency to issue bonds secured by future revenues to fund these projects and programs when they are needed, rather than waiting to collect sufficient revenue to fund them. Based on the revenue projections presented in Table D-1, it would take the full duration of the extension of the time limits to the Plan, described above, for the Agency to collect sufficient revenue to complete the proposed projects listed in Table E-1. Replacing the description of land uses in the Redevelopment Plan, as described above, will allow the Redevelopment Plan to stay current with the City's land use policies and standards without the need for further amendment of the Redevelopment Plan. qRSQ 1 CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT AGENCY This document is the Preliminary Report ("Report") on the proposed Sixth Amendment. It provides background on the Grand Terrace Community Redevelopment Project Area ("Project Area")and a description of the Sixth Amendment. It explains why the Sixth Amendment is being proposed and what it will accomplish. This Report is one of several documents prepared as part of the plan amendment process required by the Redevelopment Law. REPORT CONTENTS This Report has been.prepared by the Agency in accordance with Redevelopment Law. Consistent with Sections 33344.5 and 33451.5 of Redevelopment Law,this Report contains the following: Section A: Reasons for Amending the Redevelopment Plan Section B: A Description of the Blighting Conditions Present in the Project Area; Section C: A Determination as to Whether the Project Area is Predominantly Urbanized; Section D: A Preliminary Assessment of the Proposed Method of Financing the Plan Amendment, Including the Economic Feasibility of the Plan and the Reasons for the Inclusion of Tax Increment Authority; Section E: A Description of the Projects the Agency May Pursue in the Project Area and a Description of How the Proposed Projects Will Improve or Alleviate the Blighting Conditions.in the Project Area; Section F: Implementation Plan;and Section G: Neighborhood Impact Report l PLAN AMENDMENT PROCESS ~—' Redevelopment Law dictates a specific process for redevelopment plan amendments. This Report is one of several documents that Redevelopment Law requires the Agency to prepare during the plan amendment process, and is intended to aid the general understanding of the proposed Sixth Amendment. Over the next several months, the City Council, the Planning Commission, affected taxing agencies, and the community at large will have an opportunity to study and comment on the proposed Sixth Amendment. This Report will be considered by the'Agency Board; if approved, the Agency will send a copy of this Report and draft text of the Amended and Restated Redevelopment Plan to the affected taxing entities, the California Department of Housing and Community Development, the California Department of Finance, and the Planning Commission. Later, the Agency will prepare a final Report to the City Council pursuant to Sections 33352, 33451.5 and 33457.1 of the Redevelopment Law. In addition, an Environmental Impact Report will be prepared and circulated for review in accordance with the requirements of the California Environmental Quality Act. The Sixth Amendment and all supporting documents will be considered by the Agency Board and City Council at a joint public hearing that is anticipated to occur in April 2010.All Project Area property owners and affected taxing agencies will receive notice of this public hearing by mail and through the publication of public notices in local newspapers.Adoption of the Sixth Amendment is anticipated to occur in May 2010. • RSG 2 SECTION A: REASONS FOR AMENDING THE REDEVELOPMENT PLAN Without the Sixth Amendment, the Agency will be unable to conduct any further redevelopment activities in the Project Area. Nearly all of the tax increment revenue the Agency will receive under the current Redevelopment Plan limits is already committed to existing obligations. Because the City's general fund revenue is insufficient to fund the projects and programs described herein, the remaining blight in the Project Area cannot be remedied without the Sixth Amendment. PROJECT AREA LOCATION AND LAND USE The Project Area includes the entire city limits of City of Grand Terrace.A map of the Project Area is provided as Exhibit A-1. According to the City's General Plan, the Project Area is approximately 2,255 acres and is comprised of two parts: an initial 640-acre Project Area established by City Council on September 27, 1979 and the remainder of the City which was added into the Project Area by an amendment adopted on July 15, 1981.The Project Area is primarily residential and undeveloped property.Table A-1 displays the types of land uses with the Project Area by acreage. Grand Terrace Community Redevelopment Project Area ( Land Use Type Acres % of Total Single Family Residential 838.81 37.3% Multiple Family Residential 113.1 5.0% Commercial 67.2 3.0% Industrial 144.01 6.4% Institutional 32.2 1.4% Public 103.3 4.6% Open SpaceNacant 604.0 26.8% Streets and Railroad RNV 353.0 15.5% Total ( 2,255.6 100.000/6 Source:Administrative Draft Grand Terrace General Plan, 1/17/2008 PROJECT AREA HISTORY AND BACKGROUND Development of Grand Terrace began with the construction of the Gage Canal in 1896 (the area was known as East Riverside at the time). This 22-1/2 mile canal, built at a cost of 2 million dollars, brought water from the Santa Ana River marshlands below The Terrace. With plenty of irrigation water, Grand Terrace rapidly became an agricultural community featuring fine, quality citrus. However, the severe freeze of 1913 destroyed many groves. Walnuts, a hardier tree, were planted as replacements along with peaches as a quick-profit crop. In 1962, the Grand Terrace Chamber of Commerce was organized. From the very beginning the Chamber was interested in preserving the local identity of the area, and therefore, was a strong supporter of cityhood. The city was officially formed November 30, 1978, when the City Council had its first meeting at Terrace Hills Middle School and became the 16th City in San Bernardino County. The 2,255-acre 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 the entire City limits are located within the Project Area, the Grand Terrace Community Development Agency can embark on infrastructure, economic development, affordable housing, and other initiatives to mitigate blight in the community. t ' qRSG 3 Redevelopment in the Project Area has assisted in the 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 Agency provided funding for the renovation of Rollins Park, realignment and a traffic signal for the intersection of Iowa Avenue and Main Street, city street sign replacement, and acquisition of 60 acres of land for construction of a high school and commercial retail development. A description of additional Agency accomplishments is included in the Implementation Plan in Appendix A. GOALS OF THE REDEVELOPMENT PLAN This Plan is intended to achieve the following goals: 1. Eliminate and prevent the spread of blight and deterioration and to conserve, rehabilitate, and redevelop the Project Area in accordance with this Plan and future Annual Work Programs. 2. Provide for the enhancement and renovation of businesses within the Project Area to promote their economic viability. 3. Stimulate investment of the private sector in the full development of the Project Area. 4. Promote public improvement facilities,which are sensitive to the unique environmental qualities of the Project Area. 5. Provide adequate roadways to correct street alignment problems,to provide adequate circulation and access to highways. 6. Encourage cooperation and participation of property owners, business persons, public agencies, and community organizations in the revitalization of the Project Area. 7. Provide needed improvements to the community's recreational,cultural, and other community facilities to better serve the Project Area. 8. Expand the resource of developable land by making underutilized land available for development. 9. Renovate and restore sites characterized by deficiencies including, but without limitations, conditions of soil that render private development infeasible or impractical. ! 10. Achieve an environment reflecting a high level of concern for architectural, landscape, and urban design principles appropriate to the objectives of this Plan. 11. Create physical buffers,which ameliorate the adverse effects of changing land uses along interfaces. 12. Provide low and moderate income housing as is required to satisfy the needs and desires of the various age and income groups of the community, maximizing the opportunity for individual choice, and meeting the requirements of State Law. CURRENT CONDITIONS Despite the Agency's efforts, the Project Area continues to suffer from physical and economic blighting conditions, including: ■ Inadequate Public Improvements ■ Obsolete Design or Construction ■ Laying Out of Lots in Disregard to Physical Characteristics ■ Deteriorated and Dilapidated Buildings ■ Areas of High Crime These blighting conditions are described in detail in Section B of this Report. Redevelopment is necessary to alleviate these blighting conditions. 9PSG 4 REASONS FOR AMENDING THE REDEVELOPMENT PLAN Since the Project Area's adoption. in 1979, the Agency has completed many successful redevelopment projects but further redevelopment is necessary to address significant remaining blight within the Project Area. Vacant and undeveloped property in the southwestern portion of the Project Area:remain due to inadequate public infrastructure and physical conditions that hinder development, as well as the presence of obsolete buildings that must be demolished before the site can be reused. Deterioration and dilapidation have rendered some buildings in the Project Area unsafe or unfit for use. The presence of numerous crime hotspots in the western portion of the Project Area creates a burden on the rest of the community by demanding a disproportionate share of police and code enforcement resources. A detailed description of remaining blight is contained in Section B of this Report. The Sixth Amendment is necessary to secure the . financial•and administrative tools that will enable the Agency to implement proposed projects that are necessary for the elimination of blight. The proposed Sixth Amendment is necessary to give the Agency the financial and administrative resources necessary to alleviate blight and carry out the goals of the Redevelopment Plan. Increasing the Tax Increment Limit The current limitation on the amount of tax increment revenue that may be allocated to the Agency leaves virtually no revenue for additional projects and programs. The Agency will be unable to undertake any redevelopment activities unless this limit is increased. The cost of proposed projects, which total approximately $27 million, exceeds the available revenue within the Redevelopment Plan's current financial limits (estimated at $3.3 million), by approximately $23.7 million (not accounting for inflation, financing or administration costs). The existing Redevelopment Plan permits the Agency to collect $70 million in tax increment generated by the Project Area, net of pass through payments to affected taxing agencies pursuant to reimbursement agreements. The existing Redevelopment Plan also establishes the time limit to collect tax increment (July 15, 2027 for both the Original and Added Areas, pursuant to Amendment No. 5). As described in Section D of this Preliminary Report, it is estimated that cumulative tax increment for the Project Area will reach this $70 million cap in fiscal year 2011-12, which is approximately 15 years prior to the time limit to collect tax increment pursuant to the existing Redevelopment Plan. The chart below illustrates this shortfall in revenue available to fund proposed projects based on current Redevelopment Plan limits and the estimated'cost of proposed projects and programs that will help eliminate blight. Exhibit A-1: Revenue Shortfall for Proposed Projects $30,000,000 $27 021 000 25 000 000 $20,000,000 '� '� ", $15,000,000 $10,000,000 $5,000,000 $0 Projected Revenue with Current Limits Total Costof Proposed Projects RSG 5 A more detailed financial analysis is included in Section D of this Report. Increasing the limit on the amount of tax increment the Agency may collect to $225 million, net of pass through payments to affected taxing agencies pursuant to reimbursement agreements, will ensure that sufficient funding may be received to fund proposed projects. Increasing the Bonded Indebtedness Limit The Agency needs to increase the Redevelopment Plan's bonded indebtedness limit in order to secure advanced funding to implement redevelopment projects in a timely manner.The current bonded indebtedness limit is $15 million. The Sixth Amendment would increase this limit to $75 million, commensurate with the increase in the amount of tax increment that may be received. Bonds give the Agency maximum financial capacity and flexibility to fund redevelopment projects at the time they are needed, rather than wait for tax increment revenue to accumulate over a long period of time.Without the capacity to issue additional debt, the Agency's ability to eliminate remaining blight in the Project Area will be severely hindered. Bonds and all other forms of Project Area indebtedness are repaid with tax increment revenues generated from the Project Area up to ten years after the effectiveness of the Redevelopment Plan expires. The Agency currently has $8.8 million of outstanding bonded indebtedness. Rescinding Agency's Eminent Domain Authority The proposed Sixth Amendment would also rescind and eliminate the current authority of the Agency to commence eminent domain within the Project Area. The Agency does not foresee the need to retain eminent domain in the Project Area as there are no plans to-acquire any property by eminent domain over the duration of the Redevelopment Plan. The rescinding of this authority would be effective immediately following the effectiveness of the ordinance adopting the Sixth Amendment. i ' Extending the Duration of the Redevelopment Plan The Agency is proposing to extend the effectiveness of the Redevelopment Plan in the Original and Added Areas by the following time periods: • Original Area — Extend Plan effectiveness by five years from July 15, 2017 to September 27, 2022, and the duration to collect tax increment revenue within the Original Area to September 27, 2032; and • Added Area—Extend Plan effectiveness by seven years from July 15, 2017 to July 15, 2024, and the duration to collect tax increment revenue within the Added Area to July 15, 2034. The Agency is extending the duration of the Redevelopment Plan for the Original Area and the Added Area as allowed under different provisions of the Redevelopment Law. In 1993, twelve years after the Agency established the July 15, 2016 termination of the then-Redevelopment Plan's effectiveness for both the Original and Added Areas, Redevelopment Law was amended to allow existing redevelopment plans to have a duration of 40 years from the date the project area (or'added area) was established. Statewide, many redevelopment plans were amended to this longer duration, but in the Agency's case, the constraining tax increment limit made such time limit extensions virtually useless without an increase in financial limits as proposed now with the Sixth Amendment. Subsequently, the Redevelopment Law's limits on many redevelopment plans were modified twice as a result of the state's taking of redevelopment funds over a three year period. As a result of these amendments redevelopment plans eligible for these extensions could be amended by simple ordinance, resulting in first the addition of one year to the plan's effectiveness, and again by up to two additional years. Of these two additional time limit opportunities, the Agency has only taken advantage of the first one-year extension when the Fifth Amendment was adopted by Ordinance No. 212 on July 22, 2004. Consequently, the duration of the existing Redevelopment Plan's effectiveness may be amended a second time for the state's taking of redevelopment funds by two additional years for both the Original and Added Area. i qRSG 6 The effectiveness of the Amended Plan would therefore be a total of 43 years from the date the Original Area and Added Area were established, or to September 27,2022 and July 14, 2024, respectively. Redevelopment Law also allows redevelopment agencies to collect tax increment revenue for ten additional years beyond the effectiveness of a redevelopment plan. With the extensions to the Plan effectiveness described above, the Sixth Amendment establishes longer periods to collect tax increment revenue for the Original and Added Areas, to.September 27, 2032 and July 14, 2034, respectively. Without the extension of the Redevelopment Plan duration described above, the Agency will not be able to undertake any of the projects planned to eliminate blight in the Project Area (as described in Section E) that have not already been completed. Additionally, the Agency's ongoing programs will cease and any City programs that rely on Agency funding (such as code enforcement and economic development)will lose that funding. Any blight in the Project Area as of the expiration date will remain until the City can generate the necessary funds through other revenue sources. Replacing the Description of Land Uses The Agency needs to modify the description of land uses in the Redevelopment Plan to eliminate any conflicts between the Redevelopment Plan and the City's General Plan,zoning ordinance, or other applicable land use policies and standards. Currently, the,Redevelopment.Plan includes a list of the land uses allowed in the Project Area and the development standards associated with each land use. Any changes to the City's General Plan, zoning ordinance, or other applicable land use policies and standards could result in a conflict between the land uses and standards allowed by the City and the land uses and standards allowed by the Redevelopment Plan. The only way to change the land uses and standards allowed by the Redevelopment Plan is to amend it. By'directly referring to the City's General Plan and land use policies and standards within the Redevelopment Plan, as they exist today or are hereafter amended, the Agency can eliminate the potential need to further amend the Redevelopment Plan to comply with the City's General Plan. i R Amended and Restated Redevelopment Plan The Agency is proposing an Amended and Restated Redevelopment Plan in order to incorporate the original Redevelopment Plan and all subsequent amendments into one document. All of the previous redevelopment plans and amendments will be amended and superseded by the proposed Amended and Restated Redevelopment Plan. qRSG 7 SECTION B: A DESCRIPTION OF THE BLIGHTING CONDITIONS PRESENT IN THE PROJECT AREA INTRODUCTION Many of the properties in the Project Area are no longer blighted. These non-blighted parcels are still necessary to be.included in the Project Area because the blighted areas alone do not generate sufficient revenue to fund the projects and programs necessary to eliminate the remaining blight in the Project Area. The entire Project Area will benefit from the removal of the remaining blight. While the Agency has successfully alleviated blight in the Project Area, physical and economic blighting conditions still exist—primarily concentrated in the western portion of the Project Area. Inadequate public streets and storm drain improvements impair the development of the Southwest Commercial Site (described later in this report) and will lead to high traffic volume and unsafe pedestrian access when the new high school is completed on Main Street. Obsolete design and construction is most evident in the closed Highgrove Generation Station but is also present in other buildings in the western portion of the Project Area. There are deteriorated and dilapidated buildings in the western portion of the Project Area that are unfit or unsafe for use. The laying out of lots in disregard for physical characteristics has resulted in public improvement deficiencies related to stormwater storage requirements on the Southwest Commercial Site. In addition, certain hotspots of crime in the Project Area are a burden on the City by demanding a disproportionately large portion of police and code enforcement resources. The blighting conditions still remaining in the Project Area include: ■ Inadequate Public Improvements ■ Obsolete Design or Construction ■ Laying Out of Lots in Disregard to Physical Characteristics ■ Deteriorated and Dilapidated Buildings ■ High Crime Rates The Redevelopment Plan was adopted in 1979 to address the blighting conditions present in the Project Area as defined by Redevelopment Law at the time. The Redevelopment Plan was amended in 1981 to add the remainder of the City to the Project Area.The definition of a blighted area at the time the Redevelopment Plan was adopted was as follows(Redevelopment Law Section numbers provided): 33031. A blighted area is characterized by the existence of buildings and structures, used or intended to be used for living, commercial, industrial, or other purposes, or any combination of such uses, which are unfit or unsafe to occupy for such purposes and are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and crime because of any one or a combination of the following factors: (a) Defective design and character of physical construction. (b) Faulty interior arrangement and exterior spacing. (c) High density of population and overcrowding. (d) Inadequate provision for ventilation, light, sanitation,open spaces, and recreation facilities. (e) Age, obsolescence, deterioration,dilapidation, mixed character, or shifting of uses. 33032.A blighted area is characterized by properties which suffer from economic dislocation, deterioration, or disuse because of one or more of the following factors which cause a reduction of,or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social, or economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise action alone: (a) The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development. • PSG 8 (b) The laying out of lots in disregard of the contours and other topography or physical characteristics of the ground and surrounding conditions. (c) The existence of inadequate public improvements, public facilities, open spaces, and utilities which cannot be remedied by private or governmental action without redevelopment. (d) A prevalence of depreciated values, impaired investments, and social and economic maladjustment. Article 12 of the Redevelopment Law, which grants the Agency authority to amend its Redevelopment Plan, requires a description of the blight remaining in the Project Area. Blight findings may be made pursuant to the Redevelopment Law as it read when the Redevelopment Plan was adopted (described above) or based on the current definition of blight.The current definition of blight is as follows: 33031. Physical and economic blight. (a) This subdivision describes physical conditions that cause blight: 1. Buildings in which it is unsafe or unhealthy for persons to live or work.These conditions may be caused by serious building code violations, serious dilapidation and deterioration caused by long-term neglect, construction that is vulnerable to serious damage from seismic or geologic hazards,and faulty or inadequate water or sewer utilities. 2. Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots.These conditions may be caused by buildings of substandard;defective, or obsolete design or construction given the present general plan,zoning, or other development standards. 3. Adjacent or nearby incompatible land uses that prevent the development of those parcels or other portions of the project area. 4. The existence of subdivided lots that are in multiple ownership and whose physical development has been impaired by their irregular shapes and inadequate sizes, given present general plan and zoning standards and present market conditions. (b) This subdivision describes economic conditions that cause blight: 1. Depreciated or stagnant property values. 2. Impaired property values, due in significant part, to hazardous wastes on property where the agency may be eligible to use its authority as specified in Article 12.5 (commencing with Section 33459). 3. Abnormally high business vacancies, abnormally low lease rates,or an abnormally high number of abandoned buildings. 4. A serious lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. 5. Serious residential overcrowding that has resulted in significant public health or safety problems.As used in this paragraph, 'overcrowding" means exceeding the standard referenced in Article 5 (commencing with Section 32)of Chapter 1 of Title 25 of the California Code of Regulations. 6. An excess of bars, liquor stores,or adult-oriented businesses that has resulted in significant public health, safety,or welfare problems. 7. A high crime rate that constitutes a serious threat to the public safety and welfare. Pursuant to Section 33368 of the Redevelopment Law, the decision of the City Council to pass the Ordinances adopting and amending the Redevelopment Plan was final and conclusive and thereafter the Project Area shall be conclusively presumed to be a blighted area as defined by Section 33031 or Section 33032. 9PSG 9 METHODOLOGY AND APPROACH Several data sources were used to determine whether blight remains in the Project Area. This Report utilizes many quantitative and qualitative research tools developed by RSG to make determinations for the formation of, and amendments to, redevelopment project areas throughout the state. Specifically,the methodology used to determine blighting conditions are as follows: ■ Field Reconnaissance: Trained staff conducted a parcel-by-parcel field survey of the Project Area on January 14, 2009, documenting and photographing examples of blighting conditions that could be observed from the public right-of-way. Both physical and economic indicators of blight were noted, such as deterioration and dilapidation, possible abandoned buildings, and crime such as vandalism and graffiti. ■ Property Tax Research: RSG searched the County Department of Tax Collection and Licensing's Property Tax Bill Information System to use as an indicator that a vacant and neglected building is abandoned. ■ Investigation of Development Standards: RSG reviewed the City's General Plan and Zoning Code to identify development standards. This information was used as a basis to determine whether properties have conditions that hinder economically viable use or have irregular shapes and sizes for proper usefulness and development. ■ Investigation of Infrastructure Deficiencies: RSG met with City and Building and Safety Department staff to determine if any infrastructure deficiencies or other conditions are hindering development in the Project Area. The General Plan and the Environmental Impact Report for the General Plan were also reviewed to determine if any significant infrastructure deficiencies exist in the Project Area. ■ Analysis of Property Information: RSG used First American Title Metroscan Information Service to obtain County Assessor's data on property information such as parcel shape, size, ownership, assessed value and land use. Parcel location, shapes, sizes and other information was also available from GIS files provided by the City. RSG utilized this information in the analysis of existing Project Area conditions. ■ Land Use Analysis: RSG analyzed existing land uses and spoke to local real estate brokers to identify adjacent or nearby incompatible land uses within the Project Area that prevent economic development. ■ Crime Analysis: RSG collected information from the San Bernardino County Sheriff's Department ("Sheriff')and interviewed Lieutenant Newcombe of the Sheriffs Department to assess how crime may be affecting the Project Area. FINDINGS Blighting conditions that were originally identified at the time of the adoption of the redevelopment plans for the Original and Added Areas that were found to remain in the Project Area at the time of this Sixth Amendment include: ■ Inadequate Public Improvements ■ Obsolete Design or Construction ■ Laying Out of Lots in Disregard to Physical Characteristics ■ Deteriorated and Dilapidated Buildings ■ High Crime Rates Pursuant to the Redevelopment Law, the location of these conditions is illustrated in Exhibit B-1. Exhibit B-1 also depicts parcels within the Project Area that are no longer blighted. 9RSG 10 CITY of GRAND TERRACE- COMMUNITY REDEVELOPMENT PROJECT AREA PHYSICAL AND ECONOMIC BLIGHT MAP EXHIBIT B-1 Legend Parcels with Economic Blight inadequate infrastructure ®Substandard Building Materials Poorly Constructed Additions ®Garbage,Debds,Stagnant H2O&Combustible Matter Outdoor Storage Production ®Multiple Econorric Blighting Conditions Converted Living Space Parcels with Physical Blight ®Faulty Weather Production ®Broken Windows ®Exposed Wiring -Broken Deterlrated Flooring ®Damaged Exterior Building Materials Multiple Physical Blighting Conditions Unblighted Parcels _Unblighted Parcels' , k: 1 ' r , 4 , i ® f e. / ji rt I i � i 1 N 0 0.15 0.3 0.6 H H H I Miles i • RSG �� Inadequate Public Improvements The existence of inadequate public improvements, public facilities, open spaces, and utilities which cannot be remedied by private or government action without redevelopment is a condition of economic blight per Redevelopment Law Section 33032(c) as it read in 1979 and in 1981, when the Original and Added Areas were adopted. The southwest portion of the Project Area has numerous properties that are unlikely to see development without the Agency investing in public improvements. Southwest Commercial Site For more than two decades, the City has been trying to develop a number of vacant. properties in the southwestern portion of the Project Area adjacent to Interstate 215 ("Southwest Commercial Site"). However, significant infrastructure needs have contributed to the lack of development. The City's 1988 General Plan update changed the land use designations of the site to allow a large portion of the Southwest Commercial Site to be developed with light industrial uses. This change from the 1983 General Plan was made because the shopping center project originally considered for this area did not prove to be a viable project as it was hampered by market and access deficiencies. Within the past eight years, the City tried to implement the Outdoors Adventure Center specific plan on this site. The City Council approved the specific plan but the developer withdrew from the project because the freeway access to the site was insufficient. • RSG 12 �_, Yf'RI7 ^'tr lg`aQi ty ! 3 4 ' Y ❑ " , ' Rena 91 ,w I De.Berry Sl- - De Berry St;;• .. —De Berry Sf , 1 u�fi ►t * pt ' 7 Y r 1 i� 'Sgmf i r Mavts v e r f - - &"�"w� r '+'' :c3ccVan Buren Sl .r.4� t°3'i.-•.�,. E b ,� '' � 111, E Ij:T� �.��• � - v F /r • >rts� sc rrs• *.ar tih a �. >�. Lark St a - t 1�SS t L 1A• I n i h` ,- � h- 'Emerald SI•--` Lo- 42, 0 � . mks d" -{noj Rave nWay�� ME A W M•amrSl;� 'Js:ri:.: _ a�i re'•se.Niea>•rcrrkse..�.r.v.:.�=.�.�...rri.»a.,._3�::��.a._'...:r.,_?«.._.__._:. Photo B-1:An aerial view of the Southwest Commercial Site According to the City's Building and Safety department, the Southwest Commercial Site contains approximately 4 acres of wetlands that will need to be maintained onsite. In addition, development of the Southwest Commercial Site will require retention basins on the site and significant storm drain improvements along De Berry, Van Buren, and Pico Streets. The retention basins and wetlands areas will reduce the amount of developable land on the site by approximately four acres; land which must be purchased but which cannot be resold. A private developer would be unlikely to assume this loss and therefore public investment would likely be required. However, the City does not have the financial capacity to purchase these undevelopable areas or to provide developer subsidies to make the site viable and therefore, redevelopment assistance is vital.While the storms drain improvements would be constructed underneath roadways,the cost of the improvements would need to be funded by the Agency. • RSG 13 Another infrastructure need impeding the development of the Southwest Commercial Site is lack of access. San Bernardino Association of Governments, Caltrans, and the City are working to replace the Interstate 215 interchange at Barton Road, but the local streets that would provide access to the site are inadequate to accommodate the increased traffic volume that would result from the development of the site. Van Buren Street and Pico Street are both currently two lane roadways and, according to the City's Building and Safety Director, would need to be upgraded to their ultimate cross section, which includes curb, gutter and storm drain improvements to accommodate the increased traffic volume that would result from development of the Southwest Commercial Site. Traffic signals would be required where Van Buren Street and Pico Street intersect Michigan Street. Additionally, primary access to the Southwest Commercial Site is proposed to be an extension of Commerce Way from its current terminus to Main Street. These infrastructure deficiencies result in a significant deterrent to development. According to an analysis performed by RSG, there is a significant funding gap between the actual cost of developing the Southwest Commercial Site and the expected return on investment to a private developer. To assess the likely funding gap, RSG conducted a pro forma analysis of building costs and project value under two hypothetical development scenarios: a regional shopping center and an industrial flex development. In both scenarios, a 60-acre site was identified for the development. Access to the site was assumed to be along Van Buren Street and Pico Street from within the City and along the proposed extension of Commerce Way to Main Street from Interstate 215. Off-site improvements include widening and improving Van Buren and Pico Streets, the Commerce Way extension, traffic signals where Michigan Street intersects Van Buren Street and Pico Street, storm drains and retention basins to mange the flow of runoff, and wetlands mitigation. On-site improvements include parking, landscaping, and loading areas, and the cost is based on Marshall & Swift average construction costs in San Bernardino. Direct construction costs are also based on Marshall &Swift costs. Market value of land and gross scheduled rents are based on lease rates for comparable properties listed on Loopnet. The site design is hypothetical and not based on any City or developer plan or document. l Exhibit B-2 provides a summary of assumed development standards and costs. • RSG 14 Exhibit B-2:�Y•1a�a,�a.��K•��,r�ara:iyre��y��a�.Yya►r_:��•yra:��h�•�.�r_��-1.Lei UUI► v&01:4►I Regional Shopping Center PROJECT DESCRIPTION Gross Site Area Square Feet 2,623,183 Gross Site Area Acres (excluding right-of-way) 60.22 Nonbuildable Square Feet(See B-2) 418,612 Nonbuildable Acres (See B-2) 9.61 Developable Site Area (Square Feet) 2,204,572 Developable Site Area (Acres) 50.61 Lot Coverage 0.25 Gross Building Area(GSF) 551,143 Net Building Area 551,143 On Site Landscaping, Parking & Loading Area 1,653,429 Landscaping Area 0 RESIDUAL LAND VALUE Assumptions Totals $ Per GSF Development Costs Direct Construction $103.69/gsf $ 57,149,330 $ 103.69 On-Site Improvements $4.55/sf 7,522,429 13.65 Off-Site Improvements $3.33/sf 7,340,000 13.32 Indirect Costs (including Financing)@15% $17.60/gsf 9,700,764 17.60 Total Development Costs Excluding Land $ 81,712,523 $ 148.26 Capitalized Project Value Gross Scheduled Rents $2.00/sf(nnn) $ 13,227,430 $ 24.00 (Less)Vacancy and Bad Debt 8.50% (1,124,332) (2.04) Effective Gross Income (EGI) $ 12,103,098 $ 21.96 (Less)Operating Expenses Management Expense& Fees 4.50% EGI $ (544,639) $ (0.99) Reserves $0.15/gsf (82,671) (0.15) Total Operating Expenses (627,311) (1.14) Net Operating Income(NOI) $ 11,475,787 $ 20.82 Capitalized Project Value 11% Cap Rate $ 104,325,339 $ 189.29 (Less)Cost of Sale 3% Value (3;129,760) (5.68) (Less)Developer Profit 10% Value (10,432,534) (18.93) Total Warranted Investment 90,763,044 ' 164.68 (Less)Development Costs $ (81,712,523) $ (148.26) Residual Warranted Investment $ 9,050,522 $ 16.42 Residual Value per SF Land $ 3.45 Source: Marshall& Swift, City of Grand Terrace, Lodpnet • RSG 15 i The Residual Value per SF Land shown at the bottom of Exhibit B-3 is the projected value of the underlying land after the proposed project is complete. This is well below the market value of the land based on real estate listings in the City (approximately$14 per square foot according to comparable real estate listings on Loopnet.com as of March 10, 2009).As a result, this project is likely not economically feasible without Agency assistance. Exhibit B-3 provides a summary of assumed development standards and costs of an alternate development scenario. This second scenario includes the development of industrial flex space. qRSG 16 Exhibit B-3:EY�1�n.��a.-ftK��i�ii�aia:tyr_��.y��.Yrla►1_I:��y�ahul��y�:�r_��■�eara��i��►�e�.� Industrial Flex Buildings PROJECT DESCRIPTION Gross Site Area Square Feet 2,623,183 Gross Site Area Acres (excluding right-of-way) 60.22 Nonbuildable Square Feet(See B-2) 418,612 Nonbuildable Acres (See B-2) 9.61 Developable Site Area (Square Feet) 2,204,572 Developable Site Area (Acres) 50.61 Lot Coverage 0.40 Gross Building Area(GSF) 881,829 Net Building Area 881,829 On Site Landscaping, Parking& Loading Area 1,322,743 Landscaping Area 0 RESIDUAL LAND VALUE Assumptions Totals $Per GSF Development Costs Direct Construction $49.42/gsf $ 43,576,444 $ 49.42 On-Site Improvements $4.55/sf 6,017,943 6.82 Off-Site Improvements $3.33/sf 7,340,000 8.32 - Indirect Costs (including Financing)@15% $8.44/gsf 7,439,158 8.44 Total Development Costs Excluding Land $ 64,373,545 $ 73.00 Capitalized Project Value Gross Scheduled Rents $1.00/sf(nnn) $ 10,581,944 $ 12.00 (Less)Vacancy and Bad Debt 8.50% (899,465) (1.02) Effective Gross Income (EGI) $ 9,682,478 $ 10.98 (Less)Operating Expenses Management Expense& Fees 4.50% EGI $ (435,712) $ (0.49) Reserves $0.15/gsf (132,274) (0.15) Total Operating Expenses (567,986) (0.64) Net Operating Income(NOI) $ 9,114,493 $ 10.34 Capitalized Project Value 11% Cap Rate $ 82,859,024 $ 93.96 (Less)Cost of Sale 3% Value (2,485,771) (2.82) (Less) Developer Profit 10% Value (8,285,902) (9.40) Total Warranted Investment 72,087,351 ' 81.75 (Less) Development Costs $ (64,373,545) $ (73.00) Residual Warranted Investment $ 7,713,806 $ 8.75 Residual Value per SF Land $ 2.94 Source:Marshall& Swift, City of Grand Terrace, Loopnet qRSG 17 The residual land value in Exhibit B-2 is slightly less than in Exhibit B-3 and therefore significantly below the market value for land in Grand Terrace. Without redevelopment investment, this land is likely to remain undeveloped. _ In addition to the infrastructure deficiencies of the Southwest Commercial Site, portions of the site contain wetlands. According to the Building and Safety Department, the wetlands would require mitigation that would increase the costs of developing the site and therefore be a disincentive to prospective developers and contribute to the lack of development of the property. The City has been attempted to encourage development on the Southwest Commercial Site for more than twenty years, but market conditions and insufficient site access have made all previous projects non-viable. Without the ability to invest redevelopment funds to facilitate the development of the site, it is likely to remain vacant and underutilized. Main Street and Michigan Street Improvements The current condition of Main and Michigan Streets presents a safety hazard to pedestrians walking alongside or crossing Main Street and Michigan Street. Currently, both streets are two lane roadways with intermittent sidewalks. There is not sufficient separation between vehicular traffic and pedestrians along the roadway except in the few sections with sidewalks, and there are no crosswalks where Main Street and Michigan Street intersect with each other and with other local roads. The Colton Joint Unified School.District ("CJUSD") will soon be building a new high school on Main Street near Taylor Street with a planned enrollment capacity of 2,500 students. When complete, the school will exacerbate a number of traffic concerns with both increased vehicle traffic and problems caused by intermittent curbs, gutters and sidewalks. CJUSD will fund a portion of the installation of a traffic signal at the intersection of Main Street and Michigan Street but all other street improvements will be the City's responsibility. Improvements to Main Street and Michigan Street (from Barton Road to Van Buren Street) to secondary highways (four lanes, undivided) with curbs, gutters, and sidewalks on both sides of each are needed to accommodate the increased volume of vehicle traffic and to provide safe pedestrian access to the new school. In addition, full installation of right of way, curbs, gutters and sidewalks are still needed on Michigan Street between Van Buren and Main Streets. The City's Building and Safety Department estimates the need for$3 million of Agency investment to fund the necessary improvements. The City does not have the revenue necessary to fund these improvements without redevelopment and it does not have the authority to obligate CJUSD to provide any assistance. Barton Road/Union Pacific Overhead Bridge The Building and Safety Department identified the Barton Road/Union Pacific Overhead Bridge as another infrastructure project requiring Agency assistance. While currently in use, the bridge is structurally deficient and seismically unsafe, requiring approximately $500,000 of Agency investment. to match the contribution from the City of Colton to replace the bridge with one that is up to current development standards.This bridge is outside but immediately adjacent to the City and Project Area and therefore provides a direct benefit to the Project Area. Approximately ten.years ago, the City approached the California Department of Transportation ("Caltrans") requesting a contribution for retrofitting the bridge, but Caltrans preferred to replace the bridge. Agency investment would cover the acquisition right of way and a hazardous materials study along with any other identified remediation needs. Obsolete Design or Construction Conditions that prevent or substantially hinder the viable use or capacity of buildings or lots are a condition of physical blight as defined by the current Redevelopment Law Section 33031(a)(2). These conditions may be caused by buildings of obsolete design or construction. While not prevalent throughout the entire Project Area, this condition is evident in the western portion of the Project Area as described below. qRSG 18 Highgrove Generation Station This power plant located on Taylor,Street in the southwest portion of the Project Area has been closed since 2001 due to a lack of environmental controls. Built in the 1950s, the plant is not up to current electricity production standards. The gas-fired plant generates more pollutants and is not as efficient as modern power generation facilities. The cost required to upgrade the plant to.current environmental regulations would most likely significantly outweigh the revenue that would be generated by reopening the retrofitted plant. Additionally, the plant's proximity to a sensitive land use (the new CJUSD high school described previously) would likely prevent the plant from reopening. In 2006, an application was filed with the California Energy Commission ("CEC") to reuse the site for a new power plant (docket number 06-AFC-02). This project included the demolition of the old gasoline-powered plant in favor of a modern, natural gas-powered plant. However, the California Department of Toxic Substance Control ("DTSC") concluded that the investigation into hazardous material on the site was insufficient and that further investigation was needed to determine the nature and extent of any release of hazardous waste or hazardous waste constituents at the project site. According to the CEC, the project remains on hold due to environmental concerns. There is currently no schedule for completing the application process for this project. Due to long term vacancy resulting from the plant's obsolescence, the site appears unmaintained and shows signs of deterioration and vandalism.The following photographs depict examples of these conditions. i i -a Photo B-2: 12700 Block of Taylor Street, APN 1167 151 66.This is the closed Highgrove Generation Station. • RSG r 19 L t c, L I ' Jk _ � f (y Photo B-3: 12700 Block of Taylor Street, APN 1167 151 66. The siding of this structure on the plant site is falling away, revealing bare framing materials underneath. • RSG 20 �� --• 'C.s aR.�i'T t � �� ,Y �� b',•, �##R :11.�3 'i..;; . M, -'fir' A Photo 134: 12700 Block of Taylor Street, APN 1167 151 66. Another structure on the plant site with damaged building materials. It is unlikely that this obsolete facility will be reused due to the fact that it has been dormant for 8 years. Attempts to reuse the facility have been unable to secure the necessary environmental clearance and permits. The high cost of clearing the site and potentially remediating any contaminants will likely require Agency involvement for this site to be redeveloped. Several environmental investigations were conducted incorporating the plant between 1996 and 2004 revealing low levels of contamination in localized areas. This contamination included elevated concentrations of cadmium and arsenic in some soil samples, a minor concentration of total petroleum hydrocarbons adjacent to an oil/water separator pond, and areas of soil with containing low or high pH. Some of the studies also concluded that the demolition of the structures on the site could reveal additional contamination. The DTSC concluded in 2006 that further investigation into possible hazardous material on the site was required. Laying Out of Lots in Disregard to Physical Characteristics According to the City's Building and Safety Department, the Southwest Commercial Site requires significantly sized retention basins on site and significant storm drain improvements along De Berry, Van Buren, and Pico Streets. As described previously, the retention basins will reduce the amount of developable land on the site by approximately four acres; land which must be purchased but which cannot be resold. Additionally, there are jurisdictional wetlands on the site, which must be retained on site.The jurisdictional area is approximately 4 acres of land, which must be purchased but cannot be resold or built upon. A private developer would be unlikely to assume this loss so public investment would likely be required and the City does not have the means to fund it without redevelopment. While the storm drain improvements would be constructed underneath roadways,the cost of the improvements would need to be funded by the Agency. 9RSG 21 Deteriorated and Dilapidated Buildings Buildings that are unsafe or unfit for use due to age, deterioration, dilapidation, mixed character, or shifting of uses are blighted per Redevelopment Law Section 33031(e) as it read when the Project Area was adopted. Only a few properties in the Project Area exhibit this condition but several properties in the western portion of the Project Area are deteriorated or dilapidated enough as to pose a health and safety hazard. Conditions include: ■ Roofs, eaves and overhangs that are sagging, broken, cracking, rotted, peeling, and/or otherwise deteriorated to a point of endangering the health and safety of occupants. ■ Damaged exterior building materials such as cracking and chipped walls, rotting wood, buckling columns, wood panels out of alignment, rusting metal roofs and walls, and other conditions that endanger health and safety of building occupants. ■ Substandard building materials and poorly constructed additions that do not comply with current building standards. ■ Faulty weather protection that could accelerate the deterioration of the building or pose a health and safety hazard. The following photographs illustrate these conditions of deterioration and dilapidation.The photographs depict both residential and non-residential properties. i 3 � IT x t Photo B-5: 12600 Block of Sandburg Way, APN 1167 201 103. This dilapidated building on a vacant lot adjacent to residential properties has collapsed and presents a safety hazard. A gap in the fence around the property makes it ineffective at preventing access to a building clearly unsafe for use. • R.SG 22 t ri VITO � a sa a k S I, s s F.E -7� •t. ^vY�''aic ;y,+.�.` CL �b- ?� t•/�#.Ja� a r.`.'f,tom+ t c-a, h y r1r I.`.�2 f .;'�^ �e, .�'t y r ra�' r c.r '� �=n+' �. ��by -<.*-, 4I�h� r '� 9 r .M [`C.1 �`\•�R Q G2 � j � 4� t'"''c' t�•y•\. � Pis •p-,�,' "� ''�3 � ti.'! �" ! .rn Tw �.,.t ra"` j s��S`�a �ti t;,y{i Jt's'`�1,• �v.. 'a�Y7 �:c � '. f4 t y r`.. ��y ,i,F �� n '� 2'. Z--•rtt+- S `��y i cs3,a:6s,r,l^r�C 7.t!t\ 'T, E•♦ � � '�q : � '4 s �Yr �� a �w'�. 0G�a+�yx l"' n k��• �f� A��' •`t 3 � ;ylC t �*V � .�i'd �Sv Iry �� } ��+ �'i.� �a. j.`" �►rb��"a � � � 7,a t a+ >, .r. .. _ li'a >+- .+tat �y 7 4L ems- � v.�:1 c •� }� �. -� ': '.y a'."' a atY ■E ui e.a ...x r... !�l's ..�9..�s.s'' `a_ _..__ •�s L.. z�_� _.. .r_ .J. _ _ ., ._� Photo B-6: 12600 Block of Sandburg Way,-APN 1167 201 103. This dilapidated building appears to be at risk of collapsing. i • RSG 23 r ' Photo B-7: 11800 Block of Burns Avenue,APN 275 191 02. The damaged building materials in this residence L_ have exposed the interior to the elements at the base of the walls. Apparent damage to the porch overhang appears to be a safety risk as deterioration has affected the structural integrity. • RSG 24 � :Say,. r^� Y ,,,1 �✓� a-fF�:f� ". f j tr Photo B-8: 21700 Block of Vivienda Avenue, APN 275 191 02. Portions of the roof of this building have collapsed and the remaining roofing material is significantly deteriorated. qRSG 25 Esj, GA r r� l g �1 YC$ Wli 11 G s r�X rj .?• '.�`ar �yi T. s ��1� �.` � a IY'� �i Yy� �i-...�� .ae...; VNV mm r 'R*c v•yl 5 _ Yl' 1 A.. i t". t d , w Gt Photo B-9: 21700 Block of Vivienda Avenue, APN 275 191 02. The roof of one of these buildings is partially collapsed and all three show significant signs of deterioration. RSG 26 sk' 45 Photo B-10: 12500 Block of Michigan Street, APN 1167 191 04. This residence has a poorly constructed j second story addition and damaged exterior building materials. The unfinished portions of the wood siding are showing signs of deterioration. According to City staff, the deterioration is caused by termites. The City has repeatedly attempted to encourage the owner to replace the siding but the owner has refused. i 1 qRSG 27 i� Photo B-11: 12500 Block of Michigan Street, APN 1167 191 04. The damaged roof of this garage appears to have been temporarily patched with a tarp that has also deteriorated. Inadequate weather proofing on the side of the building will accelerate the deterioration already evident. RSG 28 k�s" i . sFw R 7 '1 Photo B-12: 11800 Block of Burns Avenue, APN 275 282 14. The damage to the left side and back of the chimney of this residence poses a safety risk as it appears to be breaking apart. • RSG 29 i _ c :. ' As �'"�` 2 sa. � ➢r_ .tom I •i I i fi» Photo B-13: 12700 Block of Taylor Street, APN 1167 151 41. The roofing materials on this structure are damaged and do not appear to adequately protect the interior against the elements. The sides of the building show signs of past vandalism. Crime Rates An area with a high crime rate that constitutes a serious threat to the public safety and welfare of a community is an economic condition that causes blight according to current statutes of the Redevelopment Law(Section 33031(b)(7)). In order to assess how crime may be affecting the Project Area, information was collected from the San Bernardino Sheriff's Department. According to Lieutenant Newcombe, certain areas in the Project Area experience a much greater volume of service calls compared to the rest of the City. Criminal activity hotspots are concentrated in the western portions.of the Project Area where the Agency has identified the greatest need for redevelopment. These areas of heightened criminal activity in the Project Area include areas with high density housing, property adjacent to the railroad tracks, and at the closed Highgrove Generation Station located at Taylor and Pico. Exhibit B-5, provided by the Sheriffs Department, clearly indicates areas of higher and lower concentrations of criminal activity. Section E of this Report includes a list of projects and programs that may be undertaken by the Agency in order to eliminate remaining blight from the Project Area. Projects such as Town Center, which is planned for the south east corner of Barton Road and Michigan Street, would serve to alleviate crime. This project is located in the heart of a cluster area for high criminal activity and bringing business and resources to the area would reduce vacant properties and provide an economic boost. This area is currently characterized by mixed-character, and without redevelopment will likely continue to experience higher levels of crime as City resources are not available to address this problem. qRSG 30 CITY OF GRAND TERRACE rr 2008 Calls for� Service - 0 It ERfFFCCRONER ;1.�d� ��`----�_ � �.— i 1 l , j § gsa Hot Spot of �... t � � Y � ,- f �. Concentration of Incidents x p -Very High High pl ®Moderate Low None IF Cmofe T' F�\.Uh'SIS — � fiaan !Ag v. ♦,�n[w�, 4 gr�. . - P.Bugar,CrimeMalyst 0 0.15 oa o.e 0.9 12 (009)3,, 43 2 W. Creased On.,2142009 For Law Enforcement Use Only Exhibit B-4: Concentration of Sherrill calls for service in 2008. • R S G 31 SECTION C: A DETERMINATION AS TO WHETHER THE PROJECT AREA IS PREDOMINANTLY URBANIZED Because the Sixth Amendment is riot changing the boundaries of the Project Area, a determination as to whether the Project Area is predominantly urbanized is not required at this time. Such determinations were made by the Agency when the Original Project Area and Added Project Area were established in 1979 and 1981, respectively. ,z • RSG 32 SECTION D: A PRELIMINARY ASSESSMENT OF THE PROPOSED METHOD OF FINANCING, INCLUDING ECONOMIC FEASIBILITY OF THE PLAN AMENDMENT AND THE REASONS FOR THE CONTINUED INCLUSION OF TAX INCREMENT Section 33344.5 of Redevelopment Law requires that this Report include information on the proposed method of financing, including information on the economic feasibility of the Project Area and the reasons for including tax increment financing. INTRODUCTION The current financial limits of the Redevelopment Plan result in a shortfall in revenue that leaves the Agency without the financial resources to fund proposed projects necessary to alleviate blight. The Sixth Amendment will increase the cumulative limit on net tax increment that may be collected by the Agency from $70 million to $225 million, net of pass through payments to affected taxing agencies pursuant to reimbursement agreements, to address this shortfall. Without the Sixth Amendment, it is projected that the Agency would reach its tax increment limit in fiscal year 2011-12 and have no further ability to collect tax increment revenue after this time. However, the current Redevelopment Plan time limits, established by Amendment No. 5, allow the Agency to continue to collect tax increment revenue, if the cap has not been reached, until July 15, 2027 . In addition to raising the tax increment cap to$225 million, the proposed Sixth Amendment would also extend the effectiveness of the Plan and the time limit on collecting tax increment revenue from July 15, 2027 for both the Original and Added Areas, to September 27, 2032 for the Original Area and July 15, 2034 for the Added Area. The Sixth Amendment also increases the limit on amount of bonded indebtedness that may be collected from $15 million to $75 million in order to ensure that advanced funding can be secured to implement redevelopment projects in a timely manner. The Sixth Amendment will allow taxes attributable to the Project Area, which are allocated to the Agency - pursuant to Section 33670'(b)of Redevelopment Law,to be used within the Project Area. The Agency intends to finance redevelopment of the Project Area from the following resources: ■ Tax Increment Revenues; ■ Bonded Debt; ■ . Financial Assistance from the City, County, State of California and/or Federal Government; ■ Proceeds from lease or sale of Agency-owned property; ■ Loans from private financial institutions; and ■ Any other legally available source. The more typical sources of redevelopment financing may be employed as described below. FINANCIAL ASSISTANCE FROM CITY, STATE AND/OR THE FEDERAL GOVERNMENT The Agency may obtain loans and advances from the City for planning, construction, and operating capital. The City may also defer payments on the Agency loans for land purchases, benefiting the Agency's cash flow. Such assistance may be employed to meet short term cash flow needs. As available, other funds such as state-apportioned road funds, state housing and infrastructure bond funds, state and federal transportation funds, and federal Community Development Block Grants will be appropriately utilized in conjunction with the Agency funds for costs of project implementation. LEASE OR SALE OF AGENCY-OWNED PROPERTY Under the proposed Redevelopment Plan, the Agency may sell, lease, or otherwise encumber its property holdings to pay the costs of project implementation. • RSG 33 PARTICIPATION IN DEVELOPMENT If the Agency enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay project implementation costs. PROPERTY TAX INCREMENT The Agency will continue to collect property tax increment as provided for in Section 33670(b) of Redevelopment Law, and as authorized in the Redevelopment Plan, to employ tax increment financing to fund redevelopment activities. Tax increment revenue is intended to fund ongoing redevelopment activities and to pay indebtedness incurred by the Agency. Indebtedness includes principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. The current Redevelopment Plan allows the Agency to cumulatively collect$70 million in net tax increment for the Project Area, net of pass through payments to affected taxing entities. Based on revenue projections provided in Table D-1, this cumulative limit will be reached in approximately 2 years (fifteen years prior to the expiration of the Agency's authority collect tax increment), which will preclude the Agency from funding proposed projects necessary for the elimination of blight and preventing it from implementing any new projects at this time. The proposed Sixth Amendment would increase the cumulative tax increment collection limit to$225 million, net of pass through payments to affected taxing entities. Consistent with Redevelopment Law, the Redevelopment Plan incorporates certain time limits that affect the Agency's ability to use and collect tax increment revenue. The time limit regulating how long the Agency may collect tax increment revenue is currently 10 years after the termination of the effectiveness of the redevelopment plan, or July 15, 2027 for both the Original and Added Areas. However, the proposed Sixth Amendment would alter the effectiveness of the Redevelopment Plan and therefore the time limit on collecting tax increment revenue. Pursuant to the Sixth Amendment, the Agency's time limit to collect tax increment would change to 10 years after the new plan effectiveness dates (September 27, 2032 for the Original Area and July 15, 2034 for the Added Area). Tax increment revenues are distributed to address an array of obligations.As required by Section 33334.2 of Redevelopment Law, a minimum of 20 percent of the Project Area's tax increment revenue will be deposited into the Agency's Low and Moderate Income Housing Fund for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing and debt service related to funding housing projects. The remaining 80 percent of the tax increment revenue will be used to pay for pre-existing and future Agency obligations to taxing entities, debt service related to funding non-housing projects, and other program expenditures such as infrastructure, capital facilities, and economic development programs within the Project Area. BONDED DEBT Under the proposed Redevelopment Plan, the Agency would continue to have the capacity to issue bonds and/or notes for any of its corporate purposes, payable in whole or in part from tax increment revenue generated from the Project Area. Any bonds issued by the Agency are the responsibility of the Agency, and neither the City nor its taxpayers are liable for debt service on the bonds. Redevelopment bonds are typically issued based on current cash flows,without regard to the potential increase in revenues that may lie ahead. • RSG 34 The current Redevelopment Plan includes a $15 million limit on the amount of bonded debt that may be outstanding at any one time. The Agency currently has $8.8 million of bonded debt outstanding, leaving only $6.2 million available for additional financing. The Redevelopment Plan's previous time limit to incur bonded debt was rescinded in 2004 so the Agency has the authority to issue bonded debt throughout the duration of the Redevelopment Plan's effectiveness. However, without the Sixth Amendment, the Agency has very little financial capacity to issue new debt to finance the projects and programs necessary to eliminate the remaining blight in the Project Area.The Sixth Amendment proposes increasing this limit to$75 million, net of payments to affected taxing agencies pursuant to reimbursement agreements, to increase the Agency's financial capacity to fund redevelopment projects in a timely matter. OTHER AVAILABLE SOURCES Any other loans, grants, or financial assistance from the federal government, or any other public or private source will be utilized, as.available and appropriate.The Agency will also consider use of the powers provided by Redevelopment Law to provide construction and other funds for appropriate projects. Where feasible and appropriate, the Agency may use assessment district and/or Mello-Roos bond financing to pay for the costs of public infrastructure,facilities, and operations. TAX INCREMENT REVENUE PROJECTIONS The primary source of project financing for the Project Area is the collection of tax increment revenues. Table D-1 presents a detailed preliminary forecast of tax increment revenues for the Project Area based on the assumptions noted below: ■ Base Year Values:the Agency receives property tax increment revenue from the Original Area assessed value growth in excess of the 1979-80 base year value of$5,729,360 and from the Added Area assessed value growth in excess of the 1980-81 base year value of$132,105,951. The Sixth Amendment does not alter the base year values of the component areas. 1 Assessed Value Growth Rates: Projections constructed for the Project Area have conservatively applied a 3.5 percent annual growth rate on secured assessed values within the Project Area. ■ Taxing Agency Payments:Pursuant to Section 33401 of Redevelopment Law(as it read when the Project Area was adopted), the Agency entered into pass through agreements with the following taxing agencies: San Bernardino County (including the Free Library, Flood Control, Superintendent of Schools, and CSA 38 Fire), Riverside-Corona Resource Conservation District, San Bernardino Valley Municipal Water District, and Colton Joint Unified School District. Additionally, the Fifth Amendment to the Redevelopment Plan obligated the Agency to make payments pursuant to Section 33607.7 of the Redevelopment Law ("Statutory Payments") to the City of Grand Terrace, the San Bernardino County Community College District, and the Education Revenue Augmentation Fund. For the first ten years since the Statutory Payments commenced .(fiscal years 2004-05 to 2013-14), the Statutory Payments are equal to 25 percent of the Project Area's annual non-housing tax increment revenue (for only the tax increment generated above the 2003-04 adjusted base year). Beginning in the eleventh year (2014-15), in addition to the first 25 percent share, the Agency would be required to pay an additional 21 percent of the incremental increase in non-housing tax increment revenues exceeding amounts in the tenth payment year(2013-14). A forecast of Taxing Agency Payments has been included in Table D-1. Should actual tax increment revenues exceed or fall below these projections, actual Taxing Agency Payments would be higher or lower. (See Colton Join Unified School District Agreement below for more information about the pass through payments to that taxing agency.) ■ Housing Set-Aside Revenues:As required by Section 33334.2 of Redevelopment Law, the Agency would deposit not less than 20 percent of Project Area tax increment revenues into the Agency's Housing Fund for the purposes of increasing, improving, and preserving the community's supply of affordable housing. E 9RSG 35 ■ Nonhousing Revenues: Finally, the tax increment revenue remaining after County administrative fees, taxing agency payments, existing debt service, and housing set aside deposits, would be available for eligible redevelopment projects, such as infrastructure improvements, seismic retrofitting, development incentives, remediation costs, and other non-housing uses. • RSG 36 2009-10 TAX INCREMENT PROJECTIONS(WITH PROPOSED AMENDMENT) Limit is: TABLE D-1 GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT E225,000,000 SUMMARY Fiscal Year Total Pass Through Payments by Agency Cumulative Housing Housing Net Nonhousing Bond Debt Service Net Tax Tax Increment Set Bond DS Housing Nonhousing Increment County CJUSD StatutoryPmt Total Net of Pass Aside 2004 TA Revenue 2004 TA 1997 COP Total Revenue (pd by County) (pd byAgency) (pd by Agency) Through Payments 33.35% 66.65% As of 6130/09: <-RSG estimate 60,117,095 1 2009-10 6,686.075 1,990.630 - 185.168 1,990,630 64,627,372, 1,337215 619.301 717,914 1,237,674 273,525 1,511.199 1,661.863 2 2010-11 6,959,510 2,072,039 235,719 209,064 2,307,758 69,070,060 1,391,902 619,268 772,634 1,237.607 275,623 1,513,230 1,537,556' 3 2011-12 7,242.515 2,156,297 316,904 233,796 2,473,201 73,605,578 1,448,503 667,792 780,711 1-,334,583 272,311 1,606,894 1,480,120 4 2012-13 7,535.425 2,243,505 295.083 259,395- 2,538,588 78,343,020 1,507.085 1,507,085 273,591 273,591 2.956,767 5 2013-14 7.838.588 2,333,764 307,932 285,889 2,641,696 83,254,023 1,567,718 1,567.718 269,463 269,463 3,073,822 6 2014-15 8,152,360 2,427,183 321,038 329,266 2.748,221 88,328,896 1,630,472 1.630.472 269,925 269,925 3.174,476 7 2015-16 8,477,115 2.523.871 334,406 374,162 2,858,277 93,573,673 1,695,423 1.695,423 269,843 269,843 3279.411 8 2016-17 8,813,237 2,623.944 348,041 420,629 2,971,985 98,994,196 1,762,647 1,762,647 269,215 269,215 3,388,761 9 2017-18 9,161,123 2,727,519 361,949 468,722 3,089,468 104,597,129 1,832,225 1,832.225 272,906 272,906 3,497,802 10 2018-19 9,521,184 2,834,719 376,135 518,499 3,210,854 110,388,960 1,904237 1,904,237 270.916 270,916 3,616,678 11 2019-20 9.893.848 2,945,671 390,605 570,017 3.336,276 116,376,514 1,978,770 1.978,770 263.518 263,518 3,745.267 12 2020-21 10279,555 3,060,507 405,364 623,339 3,465,871 122,566,859 2,055,911 2,055.911 265,574 265,574 3,868.860 13 2021-22 10,678,762 3,179,362 420,418 678,528 3,599,780 128,967,313 2,135,752 2.135,752 261,949 261.949 4,002,753 14 2022-23 11.091.941 3,302,377 435,774 735,647 3.738.150 135,585,457 2,218,388 2,218,388 - - 4,399,755 15 2023-24 11.519,581 3,429,697 451,437 794,766 3,881,133 142,429,139 2,303,916 2,303.916 4,539.766 16 2024-25 11,962,189 3,661,473 467,412 855,954 4,028,886 149,506,488 2,392,438 2,392,438 4.684.911 17 2025-26 12,420288 3,697,862 483,708 919,284 4,181,569 156,825,923 2,484,058 2,484,058 4,835,377 18 2026-27 12,894,421 3,839,024 500,329 984,830 4,339,353 164,396,160 2,678.884 2,578,884 4,991,353 19 2027-28 13,385,148 3,985,127 517,283 1,052,671 4,502,410 172,226,228 2,677,030 2,677,030 5,153.038 20 2028-29 13,893,050 4,136,343 534,576 1.122,885 4,670.919 180,325,474 2,778,610 2,778,610 5,320,636 21 2029-30 14,418,729 4,292,852 552,214 1,195,558 4,845,067 188,703,579 2,883,746 2.883,746 5,494,359 22 2030-31 14.962,807 4,454,839 570,206 1,270,774 5,025,045 197,370,568 2,992,561 2,992,561 5,674.428 23 2031-32 15,625,928 4,622,496 588,557 1,348,622 5,211,052 206,336,822 3,105,186 3,105,186 5.861,068 24 2032-33 13,991,650 4,165,647 584,705 1,136,516 4,750,351 214,441,604 2,798,330 2,798.330 5,306,452 25 2033-34 14,518,849 4,322,606 603,095 1,209.399 4,925,702 222,825,352 2,903,770 2,903,770 5,479,979 Total 271.823,879 80,929.354 10,402,888 17,783,380 91,332,242 54,364.776 1,906,361 52,458,415 3.809,864 3,508,358 7,318,221 101,025260 • PSG 37 Table D-1 presents annual estimates of assessed values,'new development, gross tax increment revenue, taxing agency payments, and net revenues to the Agency's housing and non-housing funds.A summary of these annual projections delineating the cumulative total of these figures is presented in Table D-2 below. Summary of Project Tax Increment Revenues Table D-2 Grand Terrace Community Redevelopment Project Area Assumptions Current Year Assessed Value (2009-10) $ 806,442,769 Annual Assessed Value Growth Rate 3.5% Time Limit on Receipt of Tax Increment 7/15/2033 Forecast Cumulative Gross Tax Increment Revenue $ 271,823,879 Less:20% Gross Tax Increment Revenue to Housing Fund 54,364,776 Non-Housing Fund Total Revenue to be Deposited into the Non-housing Fund 217,459,103 Less:Taxing Agency Payments (per Agreements) 91,332,242 Less: Statutory Payments (per HSC 33607.7) 17,783,380 Less: Non-housing Debt Service 7,318,221 '~ 101,025,260 ' Housing Fund Total Revenue to be Deposited into the Housing Fund 54,364,776 Less: Housing Debt Service 1,906,361 52,458,415 Total to Agencyfor Future Projects 153,483,675 Non-Housing Fund 101,025,260 Housing Fund 52,458,415 Net Present Value of Non-Housing Fund 45,128,863 The total projected revenue that may be available to the Agency to fund project costs is approximately$153.5 million, consisting of $52.5 million for affordable housing purposes and $101 million for non-housing purposes. As shown above, the net present value of the non-housing fund as a result of the amendments, or the value of these future revenues in 2010 dollars, has been estimated at $45 million. These projected revenues are compared to total project costs in the following section. ECONOMIC FEASIBILITY ANALYSIS Redevelopment of the Project Area may involve hundreds of millions of dollars of public investment in order to stimulate private investment and remove blight in the Project Area. Section E of this Report includes a proposed list of the potential range of projects associated with this effort, based on the information available at this time. RSG 38 Table D-3 below documents the projected sources and uses of tax increment revenue projected from the Project Area without the Sixth Amendment and illustrates the Agency's need to extend and increase financial limits in the Redevelopment Plan. Sources and Uses Table D-3 Grand Terrace Community Redevelopment Project Area Housing Non-Housing Total Sources' Tax Increment Revenue 1,119,750 2,225,472 3,345,221 Total Sources 1,119,750 2,225,472 3,345,221 Uses Affordable Housing Programs 5,616,000 5,616,000 Public Infrastructure 17,000,000 17,000,000 Developmental Remediation 500,000 500,000 Miscellaneous Revitalization Programs 3,905,000 3,905,000 Total Uses 5,616,000 21,405,000 27,021,000 ' Excluding funding from other potential sources,City of Grand Terrace funds and other regional, i state,and federal funds. 2 Cumulative tax increment revenue projected to be received between fy2009-10 and fy2011-12 based on current Redevelopment Plan Limits. The amount of funds expended on projects would exceed the $3.3 million of revenue expected to be generated by the Project Area under the current Redevelopment Plan limits, but would not exceed the amount of revenue generated if the Redevelopment Plan limits were amended to allow the Agency to collect net tax increment revenue up to the proposed cumulative $225 million tax increment limit and extension of the time period for the Agency to collect tax increment. As described in Section E. when inflation. interest and administration costs to implement Droposed Droiects are aDDlied to the $21.4 million in non-housina costs above, the total cost for non-housina proiects and Droarams to remediate remainina bliahtina in the Proiect Area is aDDroximately $44 million, which is very close to the net Dresent value of tax increment revenues received under the amended time and financial limits. When housing costs are added to this figure, total project and program costs increase to $49.6 million including these extra cost factors. Project costs will be adjusted depending on available revenue over time. • RSG 39 REASONS FOR THE ALLOCATION OF THE TAX INCREMENT Section B provides evidence that significant blight remains in the Project Area. Tax increment is necessary to fund redevelopment projects to address blight because the government and private sector cannot be expected to alleviate blighting conditions on their own. Tax increment is a financial tool that enables the government to assist residents with property improvements. Tax increment is also used to provide incentives for the private sector to invest in the area and revitalize the local economy. The physical and economic impairments on the Southwest Commercial Site have prevented the development of the property. The City's General Fund revenue is insufficient to alleviate the blight within the Project Area. The Sixth Amendment is necessary to fund redevelopment projects that the City cannot fund without tax increment. Tax increment gives the Agency the financial resources to foster new development by improving infrastructure, reconfiguring lots, negotiating with property owners, providing assistance to developers, building and rehabilitating property, and soliciting new development. The projects proposed to alleviate blight within the Project Area are discussed in the next section. Table D-4 presents a comparison of the funds that could be available to the City and Agency,with and without the proposed amendment. Projected Property Tax Revenues with Existing Limits vs.Proposed Limits Table D-4 Grand Terrace Community Redevelopment Project Year With Existing Limits(No Amendment) With Proposed Limits(After Amendment) To Agency /1 To City /2 Total To Agency To City Total 2009-10 $ 2,379,777 $ 301,068 $ 2,680,846 $ 2,379,777 $ 301,068 $ 2,680,846 2010-11 2,310,190 305,670 2,615.860 2,310,190 305,670 2,615,860 2011-12 (1,344,746) 1,383,305 38,559 2,260,831 310,432 2,571,263 2012-13 (273,591) 1,716,419 1,442,828 4,463,852 315;361 4,779,213 2013-14 (269,463) 1,774,796 1,505,333 4,641,540 320,463 4,962,003 2014-15 (269,925) 1,835,215 1,565,290 4,804,948 328,816 5,133,764 2015-16 (269,843) 1,897,749 1,627,907 4,974,834 337,461 5,312,295 2016-17 (269.215) 1,962,472 1,693,257 5,151,408 346,408 5,497,817 2017-18 (272,906) 2,029,460 1,756,554 5,330,026 355,669 5,685,695 2018-19 (270,916) 2,098,793 1,827,877 5,520,915 365,254 5,886,169 2019-20 (263,518) 2,170,553 1,907,035 5,724,037 375,174 6,099,211 2020-21 (265,574) 2,244,824 1,979,250 5,924,771 385,442 6,310,213 2021-22 (261,949) 2,321,694 2,059,745 6,138,506 396,069 6,534,574 2022-23 - 2,401,255 2,401,255 6,618,143 407,068 7,025,211 2023-24 - 2,483,600 2,483,600 6,843,682 418,452 7,262,133 2024-25 - 2,568,828 2.568,828 7,077,349 430,234 7,507,583 2025-26 - 2,657,039 2,657,039 7,319,435 442,428 7,761,863 2026-27 - 2,833,480 2,833,480 7,570,237 455,050 8,025,287 2027-28 - 2,842,830 2,842,830 7,830,068 468,113 8,298,181 2028-29 - 2,940,631 2,940,631 8,099,246 481,633 8,580,880 2029-30 - 3,041,855 3,041,855 8,378,105 495,627 8,873,732 2030-31 - 3,146.621 3,146,621 8,666,989 510,111 9,177,100 2031-32 - 3,255,055 3,255,055 8,966,254 525,101 9,491,355 2032-33 - 2,959,617 2,959,617 8,104,782 484,258 8,589,040 2033-34 - 3,061,133 3,061,133 8,383,748 498,292 8,882,041 Cumulative 658,322 56,233,962 56,892,285 153,483,675 10,059,655 163,543,330 NPV @ 6% 1,508,913 24,921,052 26,429,965 68,431,477 4,782,067 73,213,544 Notes: 1/ Consists of both housing set aside funds and nonhousing tax increment after taxing agency payments and bond debt service. Negative figures reflect scheduled bond debt service payments that must be accrued from remaining tax increment revenue unless plan 2/ Tax increment to City reflects:a)City's 19.2558%share of taxes from Project Area base year value, b)City's share of statutory payments from redevelopment tax increment revenue,and c)City'share of property taxes after existing limits expire. • RSG 40 SECTION E: A DESCRIPTION OF SPECIFIC PROJECTS THE AGENCY MAY PURSUE AND A DESCRIPTION OF HOW THE PROPOSED PROJECTS WILL IMPROVE OR ALLEVIATE BLIGHTING CONDITIONS IN THE PROJECT AREA The following section identifies and discusses unfunded projects the Agency may consider to complete as a part of the revitalization efforts of the Project Area. Specific projects and programs anticipated from fiscal year 2010 through 2014 are also identified in the Five Year Implementation Plan contained in Appendix A of this Report. NON-HOUSING FUND Proposed projects and programs require $21.4.million in funding from the non-housing fund, or $44 million after accounting for interest and administrative costs. These projects will provide needed public improvements and infrastructure improvements, remediate physical characteristics impeding development, assemble inadequately-sized lots and encourage economic development in the Project Area. Proposed projects are described below; the cost listed next to each project is the amount anticipated before interest and administrative costs are added. Public Facilities and Infrastructure The following projects are proposed to remedy conditions of inadequate public improvements and infrastructure identified in Section B. Southwest Commercial Site($6.9 million) In order for development of this vacant site to be economically feasible for private sector development, the City must undertake a number of off-site improvements adjacent to the site. These improvements include improving Van Buren Street and Pico Street to their full cross sections, the extension of Commerce Way to Main Street, the installation of two traffic signals where Michigan Street intersects with Van Buren Street and Pico Street, the installation of storm drains along De Berry,Van Buren, and Pico Streets, and the construction of retention basins adjacent to the site.Without this redevelopment investment, the residual value of the land after development would be less than half the cost of purchasing the land in the current real estate market (based on a comparison of estimated development costs and capitalized project value as shown in Exhibit B- 2 and Exhibit B-3 to current market prices for undeveloped retail, commercial, and industrial land within the City). Development of this site will provide the City with additional sales and property tax revenue to fund essential City services. Main Street and Michigan Street Widening and Improvements($4.6 million) When the planned CJUSD high school on Main Street near Taylor Street is complete the vehicle and traffic volume will increase significantly. To accommodate the increase in vehicular traffic and to provide safe and adequate pedestrian routes to the school site, the City plans to widen Michigan Street from Barton Road to Main Street to its full cross-section, widen Main Street from Michigan Street to Taylor Street to its full cross section, and install a traffic signal at the intersection of Main Street and Michigan Street. The $4.6 million project cost is the funding gap remaining after the CJUSD contribution to mitigate the infrastructure impact of the new school. Without redevelopment contribution, the City lacks the funds necessary to finance these improvements. Barton Road/Union Pacific Overhead Bridge ($500,000) This bridge immediately adjacent to the Project Area, while unsafe, is currently in use. Although the improvements are currently partially funded, this project requires a redevelopment contribution of$500,000 to close the funding gap. • R S G 41 Additional Public Facilities and Infrastructure($5 million) Additional public improvement projects may be implemented that would aid current revitalization efforts and eliminate deficiencies in the existing infrastructure systems in the Project Area. These improvements may include, but are not limited to, street, water, utility, sewer, parking, public facilities and other improvements to improve traffic flow, provide better access, increase public safety, and improve surrounding property values and attract investment from the private sector. By implementing this and other types of programs to address blighting conditions affecting the Project Area, the public sector will signal its confidence in the area and will provide a springboard for private investment and reinvestment. Obsolete Design or Construction The following project is proposed to remedy conditions of obsolete design or construction. Highgrove Generation Station Demolition (cost to be determined) The Highgrove Generation Station is an obsolete power plant in the Project Area. It will need to be demolished and any contaminants on the site will need to be remediated before this property can be redeveloped. The DTSC is expected to close their investigation into the presence of any soil contamination in the near future, so an estimate of the cost of this project is unavailable at this time. Physical Characteristics Remediation Southwest Commercial Site Wetlands($500,000) In addition to the infrastructure needs identified for the Southwest Commercial Site, the wetland areas also - act as a physical constraint to redeveloping the property. The wetlands areas will need to be retained onsite which limits the development area and potential of the Southwest Commercial Site. Deterioration and Dilapidation Purchase/Rehabilitate/Resale Program ($2.5 million) The Agency will continue this ongoing program to acquire and rehabilitate dilapidated homes throughout the community. Once rehabilitation is complete, homes are sold to eligible low and moderate income households. The projected cost is based on using this program to rehabilitate approximately 15 homes during the remaining duration of the Redevelopment Plan. Home Improvement Loan Program ($3.1 million) This ongoing program provides low interest loans to fund minor rehabilitation expenses. It provides incentive for homeowners to repair damage or deterioration by providing low interest loans to fund the repairs. The projected cost is based on providing loans to approximately 100 households during the remaining duration of the Redevelopment Plan. Commercial Improvement Grant Program This ongoing program is available to property owners and/or business owners as an economic incentive to rehabilitate existing commercial structures. Implementation of the program is expected to eliminate blight, yield a stronger commercial presence, and increase the likelihood of new business development. The program focuses on the exterior improvement of commercial buildings, including new paint/stucco, new doors and windows,decorative awnings, signage, landscaping and lighting. • RSG 42 Commercial and Economic Development Program ($3.6 million) This program is designed to encourage improvement of commercial properties and to encourage economic development throughout the Project Area. This program will include Agency assistance to property owners and businesses to upgrade properties and facilitate the redevelopment of blighted properties. These programs will address and/or eliminate blighting conditions such as deterioration and dilapidation. In addition, rehabilitating and modernizing the building stock in this area will also positively effect property values to enhance the economic viability of commercial properties. Neighborhood Improvement Grant Program The ongoing program grants up to $1,000 per household to purchase landscaping and irrigation materials for front yard improvements and exterior paint. The goal of this program is to reduce blight and property depreciation caused by deteriorated exterior paint, poor front yard maintenance and the lack of front yard landscaping. Though this program would not result in substantial rehabilitation to assist in meeting long-term affordable housing production goals, these efforts are critical to reducing the number of deteriorating and/or at-risk housing units in the City. Crime Rates Town Center Land Assembly($300,000) The City has a 20-acre retail project planned on Barton Road that would provide a grocery store, restaurants, City library, and other retail uses in an area with a high crime rate. However, the project cannot proceed without Agency assistance to assemble all the land for the project. Completion of this project would assemble 14 vacant or under-utilized parcels into a coordinated retail commercial center which provides retail sales opportunities, and jobs. Bringing businesses and resources to the area would reduce vacancies and stimulate the local economy. HOUSING FUND The Agency's continuing housing fund projects require an estimated $216,000 annually. These projects include a home. improvement loan program and the purchase, rehabilitation, and sale of homes to qualified low- and moderate-income households. Additionally, the Sixth Amendment would give the Agency the ability to fund additional housing projects to meet its inclusionary housing requirements. • RSG 43 PROJECT COSTS As shown in Table D-3 previously, Agency resources under current Redevelopment Plan limits are significantly less than the costs for projects and programs to remediate blight in the Project Area. It is estimated that the Agency will collect approximately $3.3 million in tax increment revenue until fiscal year 2011-12 when it is estimated that the cumulative tax increment limit of$70 million will be reached. However, as shown in Table E-1 below, after applying inflationary factors such as financing and administrative costs, the total non-housing cost of the redevelopment projects and programs needed to remediate blighting conditions is estimate at $44 million, and the total housing costs are $5.6 million, resulting in a grand total of $49.6 million in project and program costs. After applying the$3.3 million in tax increment revenues that may be collected until fiscal year 2011-12, the Agency will be left with a $46.3 million shortfall for funding the remaining project costs without the proposed Sixth Amendment. Unfunded Projects Table E-1 Grand Terrace Community Redevelopment Project Area Direct Financing Administrative Total Project Cost Interest' Cost Cost Non-Housing Funds $21,405,000 $20,456,073 $ 2,140,500 $44,001,573 Public Infrastructure Southwest Commercial Site Improvements 6,900,000 6,594,109 690,000 14,184,109 Main Street Widening and Improvements 1,600,000 1,529,069 160,000 3,289,069 M6chigan Street Widening and Improvements 3,000,000 2,867,004 300,000 6,167,004 Barton Road/Union Pacific Overhead Bridge Improvements 500,000 477,834 50,000 1,027,834 - Additional Public Infrastructure Projects 5,000,000 4,778,340 500,000 10,278,340 Developmental Remediation Southwest Commercial Site Wetlands Remediation 500,000 477,834 50,000 1,027,834 Uscellaneous Revitalization Programs Town Center Land Assembly 300,000 286,700 30,000 616,700 Additional Commercial and Economic Development Programs 3,605,000 3,445,183 360,500 7,410,683 Housing Funds $ 5,616,000 Ongoing Programs Purchase/Rehabilitate/Resale Program 2,496,000 Home Improvement Loan Program 3,120,000 Total Unfunded Projects $49,617,573 'Assumes 25 year financing with 6%annual percentage rate. SUMMARY Proposed non-housing projects require $44 million in funding, after accounting for financing interest and administrative costs, and housing projects require $5.6 million (because the housing projects are ongoing programs, no financing is assumed). The proposed projects will alleviate blight by providing public infrastructure improvements, remediating physical conditions that hinder development, improving commercial and residential properties, and assembling inadequately-sized lots. qRSG 44 SECTION F: IMPLEMENTATION PLAN The Agency recently adopted a new Implementation Plan for the 2010 through 2014 planning period (included as Appendix A) on December 8, 2009 by Resolution 2009-11. The Implementation Plan would remain effective if the Sixth Amendment is adopted. • RSG 45 SECTION G: NEIGHBORHOOD IMPACT REPORT Redevelopment Law requires that a Neighborhood Impact Report discuss the impact the Sixth Amendment will have on low and moderate persons or families in the following areas: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. Additional issues that the neighborhood impact report must address include: the number of low or moderate- income dwelling units to be removed or destroyed;the number of low or moderate income persons or families expected to be displaced; the general location of housing to be rehabilitated, developed or constructed; the number of dwelling units planned for construction or rehabilitation to house persons and families of low or moderate income (other than replacement housing); the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting a redevelopment plan's relocation, rehabilitation, and replacement housing objectives. RELOCATION The Redevelopment Plan authorizes the Agency to acquire certain non-residential property using eminent domain before July 22, 2011. However, the Sixth Amendment will rescind the Agency's eminent domain authority. Therefore, no relocation is anticipated in connection with this Sixth Amendment and Amended and Restated Redevelopment Plan. TRAFFIC CIRCULATION The Redevelopment Plan permits the Agency to implement projects to improve traffic circulation, some of which are mentioned in Section E of this Report. The proposed Sixth Amendment will allow the Agency to fund improvements such as widening roads, adding parking, completing bridge improvements, and creating roads and sidewalks, among other things. The projects proposed by the Agency will improve circulation, mitigate traffic deficiencies, and provide general benefits to the Project Area consistent with the circulation element of the General Plan and other related documents. An Environmental Impact Report for the General Plan Update and the Sixth Amendment has been prepared and will be reviewed by the Agency and City Council in April 2010. It will explain traffic circulation impacts in more detail. ENVIRONMENTAL QUALITY The Sixth Amendment will modify the Redevelopment Plan to comply with the General Plan or other related land use policy documents. Adherence to adopted land use policies will ensure that implementation of the Redevelopment Plan will lessen or avoid potential impacts. Future development will be reviewed by the City and the Agency to ensure that architectural, landscaping, and urban design principles are adhered to and that compatibility in land uses is maintained. If required, more specific environmental analysis will take place for future development as required by the California Environmental Quality Act("CEQA"). The Environmental Impact Report for the Sixth Amendment will provide greater detail on the Sixth Amendment's impacts on environmental quality. RSG 46 AVAILABILITY OF COMMUNITY FACILITIES AND SERVICES The Sixth Amendment will modify the Redevelopment Plan to provide that any redevelopment activity shall be subject to, and consistent with, the policies set forth in the City's General Plan, Zoning Ordinance, and local codes and ordinances, as they now exist or are hereafter amended.The General Plan incorporates policies to mitigate impacts on public services and facilities. Implementation of the Redevelopment Plan and its proposed projects are expected to improve the City's existing community facilities and services. The Sixth Amendment will allow the Agency to utilize increased tax increment revenues to provide for the upgrading of existing, and construction of new, community facilities, which will be of benefit to the Project Area. EFFECT ON SCHOOL POPULATION AND QUALITY OF EDUCATION The Project Area is served by the Colton Joint Unified School District. Future redevelopment in the Project Area would be consistent with the City's General Plan and could result in the generation of additional school-age children and raise demand for educational services. Pursuant to existing California law, any future development, including non-residential uses, will be required to pay statutory fees, which fully mitigate potential impacts on school facilities. Therefore, no significant impacts are anticipated and no mitigation measures are required. The Colton Joint Unified School District ("District") receives pass through payments pursuant to an existing fiscal mitigation agreement that provides for a full (100%) pass through of the tax increment revenue generated from inflationary adjustments to the Project Area's base year value. The District also receives mandatory statutory pass through payments pursuant to the Redevelopment Law, as explained in Section D of this Preliminary Report. These statutory payments are made to all taxing agencies (including school districts), irrespective of whether the district suffers impacts from the Redevelopment Plan. This revenue may be used for capital and operational purposes, including school facilities. PROPERTY TAXES AND ASSESSMENTS The Redevelopment Plan calls for various methods of financing its implementation. Because redevelopment agencies do not have the constitutional authority to impose taxes, implementation of the Redevelopment Plan does not cause an increase in property tax rates. Rather, the principal method of financing redevelopment is the utilization of tax increment revenues generated by the Project Area. Tax increment financing reallocates property tax revenues generated by increases in the assessed value of property in the Project Area. Improvement to Project Area property may result in higher assessed valuation in the same way that improving property in any area may result in increased assessed value. LOW AND MODERATE INCOME HOUSING PROGRAM A. Number of Dwelling Units Housing Low and Moderate Income Households Expected to be Destroyed or Removed Over the Remaining Life of the Redevelopment Plan The Agency currently does not have any plans to destroy or remove dwelling units housing low and moderate income households over the remaining life of the Redevelopment Plan. B. Number of Persons and Families of Low and Moderate Income Expected to be Displaced Over the Remaining Life of the Redevelopment Plan The Agency currently does not have any plans to displace low and moderate income individuals over the remaining life of the Redevelopment Plan. C. General Location of Replacement Low and Moderate Income Housing to be Rehabilitated, Developed and Constructed • PSG 47 The Agency currently does not have any plans that would remove or destroy any housing units as a result of implementation of the Redevelopment Plan. It is important to note that the Agency is rescinding its eminent domain authority as part of this Sixth Amendment. However, if any destruction or removal occurs as a result of an Agency project pursuant to applicable sections of Redevelopment Law, it is the Agency's intention that any replacement housing units be located within the Project Area or in nearby areas that permit residential uses.Any new units may be constructed in areas within the Project Area where such uses are permitted. D. Number of Dwelling Units Housing Persons of Low and Moderate Income Planned for Construction or Rehabilitation Other than Replacement Housing The Agency is required to allocate 20% of the tax increment generated by the Project Area to increase, improve and preserve the community's supply or low and moderate income housing. The Agency intends to use these funds to construct, rehabilitate and improve low and moderate income housing within the Project Area. The exact number of dwelling units that will be constructed or rehabilitated cannot be estimated at this time; however the Agency will implement a housing program that addresses the housing needs and problems of the Project Area pursuant to the Housing Element of the City's General Plan. The Implementation Plan contained in Section E of this Report lists specific affordable housing activities proposed from 2010-2014. E. Projected Means of Financing Rehabilitation and New Construction of Housing for Low and Moderate Income Households The Agency intends to utilize not less than 20 percent of its tax increment revenues to finance the rehabilitation, construction and purchase of, and mortgage assistance to, housing for low and moderate income households, in accordance with the provisions of Redevelopment Law as it now exists or may hereafter be amended. The Agency will also cooperate with the City to pool funds and resources beyond the tax increment set aside funds if it is determined to be necessary by both legislative bodies in order to improve the City's affordable housing stock. F. Projected Timetable for Meeting the Redevelopment Plans'Relocation, Rehabilitation and Replacement Housing Objectives The Agency has no plans to remove any housing units at this time. As stated previously, the proposed Sixth Amendment includes the removal and elimination of the Agency's eminent domain authority in the Project Area. However, if any units are destroyed or removed as a result of an Agency project, pursuant to applicable sections of Redevelopment Law, replacement housing would be completed within four years following the demolition of any occupied affordable unit. The time frame for rehabilitating units pursuant to the Redevelopment Plan will be subject to the availability of housing fund revenues. Rehabilitation activities will be gradually phased over the duration of the Redevelopment Plan. • RSG 48 APPENDIX A: IMPLEMENTATION PLAN **Attached as a separate document.** • RSG 49 ' Appendix A 2010-2014 Implementation Plan I City of Grand Terrace Community Redevelopment Agency 2010-2014 Implementation Plan Grand Terrace Redevelopment Project Area Adopted: December 8, 2009 Resolution No. CRA-09-11 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 Contents Page Introduction 1 About the Redevelopment Plan and Project Area 2 Proposed Amendment to the Redevelopment Plan 3 Recent Accomplishments 4 Redevelopment Plan Goals 6 Projected Tax Increment Revenues 7 Proposed Redevelopment Program 8 Housing Set-Aside Requirements 9 Proposed Affordable Housing Program 11 j Housing Program Compliance Objectives 12 Housing Compliance Plan 14 Available Low/Mod Housing Funds 14 Housing Production 15 Replacement Housing 17 Proportionality Requirements 17 Proportionality Expenditures Based on Household Income Groups 18 Proportionality Expenditures Based on Senior and Non-Senior Population 19 Housing Units Constructed Without Low/Mod Funds 20 Housing Production Goals 21 Plan Administration 22 i Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 INTRODUCTION This document is the Five-Year Implementation Plan for the Grand Terrace Community Redevelopment Project of the City of Grand Terrace Community Redevelopment Agency (Agency). In fulfillment of Article 16.5 of California Community Redevelopment Law (CRL), the Agency has prepared the Implementation Plan for the Grand Terrace Redevelopment Project Area, and this Implementation Plan was adopted by the Agency following a duly noticed public hearing held on December 8, 2009. The Implementation Plan presents the Agency's goals and objectives, anticipated projects and programs, and estimated expenditures for the five-year planning period, 2010 to 2014. It also addresses the Agency's affordable housing production and replacement housing needs and achievements. The Implementation Plan 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. Page 1 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 ABOUT THE REDEVELOPMENT PLAN AND PROJECT AREA The Redevelopment Plan for the Grand Terrace Community Redevelopment Project was originally adopted by the City Council in 1979 via Ordinance No.25 and comprised a 640-acre Project Area. In accordance with California Community Redevelopment Law (CCRL; California Health and Safety Code Section 33000, et seq.), it provides the Agency of the City of Grand Terrace with powers, duties and obligations to implement a program for the redevelopment, rehabilitation, and revitalization of areas within the Redevelopment Plan boundaries. The Redevelopment Plan has since undergone additional amendments. Ordinance No. 31 was adopted on March 20, 1980 and it provided for allocations to.affected taxing agencies. Ordinance No. 52 was adopted on July 16, 1981, which expanded the Project Area to include all lands within the City thereby increasing the limits of the Project Area. City Council approval of Ordinance No. 187 in 1999 authorized the use of eminent domain to acquire non-residentially zoned property, or,with the owner's consent. A fourth amendment was adopted via Ordinance No. 202 in September 2002 to clarify the description of the Redevelopment Plan's dollar limit on tax revenue. The fifth and most recent amendment occurred in 2004 when the City Council adopted Ordinance No. 212 to extend the duration of the Redevelopment Plan and the time limit on paying indebtedness or receiving property taxes pursuant to the Plan to July 15, 2027. Table 1: Revised Grand Terrace Community Redevelopment Project Adoption date 1979, amended 1981 Expiration of Plan 2017 No time limit for non-residentially Time Limit for Use of Eminent Domain zoned properties, no authority for residentially zoned properties Time Limit to Incur Debt 2017 Time Limit to Repay Debt 2027 The entire City limits are located within the Project Area, which allows the Agency to embark on infrastructure, economic development, affordable housing, and other initiatives to mitigate blight in the community. 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. The Agency has the authority to complete redevelopment projects for the next seven and one-half (71/2) years, until the Redevelopment Plan's effectiveness expires in July of 2017. Page 2 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 PROPOSED AMENDMENT TO THE REDEVELOPMENT PLAN An amendment to the Redevelopment Plan is currently underway, and is expected to be considered for adoption in 2010, subsequent to the adoption of this Implementation Plan. The proposed amendments to the Redevelopment Plan include: • Extending the duration of the Redevelopment Plan and time limit to collect tax increment revenue by seven years, pursuant to Section 33333.6 of Community Redevelopment Law; • Increasing the limitation on the amount of tax increment that can be allocated to the Agency from the Project Area from $70 Million to $225,000 Million; • Increasing the limitation on the amount of bonded indebtedness that can be outstanding at one time from $15 Million to$65 Million; • Replacing the description of land uses in the Redevelopment Plan with language that directly refers to the City's General Plan, Zoning Code, and other applicable land use policies and standards, as they currently exists and may be hereafter amended; and • Amending and restating the Redevelopment Plan to incorporate prior amendments into a single document. If approved, the amendment will modify time and financial limits on the Redevelopment Plan for the Project Area. The amendment is being proposed because the current limits will not allow the Agency to implement projects and programs necessary to alleviate blight and provide affordable housing within the Project Area. The current financial cap of$70 Million over the life of the Plan will only allow the Agency to collect tax increment revenue approximately through fiscal year 2011-2012, at which time the Agency's debt will not have been completely paid off and the Agency's housing obligations will not have been completed. The Agency will not have revenue to implement any programs or projects beyond the 2011-12,fiscal year. If the amendment is approved, it is anticipated that the mid-term review of this Implementation Plan will be updated to reflect the Redevelopment Plan Amendment. Page 3 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 RECENT ACCOMPLISHMENTS In the last five years, the Agency has championed many successful projects and programs in the Project Area. Public Infrastructure • High School and Public Infrastructure Improvements. Through a partnership with the Colton Joint Unified School District, property was assembled for the new high school and businesses were relocated. A City of Riverside 48-inch water line was relocated and water line easements were transferred to the City of Riverside for maintenance. Negotiations continue with Riverside County Transportation Agency and Union Pacific Railroad to complete improvements to Main Street. • Property Acquisition for Project Site Assembly. Property acquisition for both the freeway- oriented 100-acre project (former Outdoor Adventure Center) and the Town Square Commercial Project has been underway in partnership with private development partners. In addition, the Agency is pursuing additional opportunities while sales prices are low to assemble property for projects at other locations that will provide new jobs and services for residents. • Commercial Improvement Grant Program. This program is available to property owners and/or business owners as an economic incentive to rehabilitate existing commercial structures. Implementation of the program is expected to eliminate blight, yield a stronger commercial presence, and increase the likelihood of new business development. The program focuses on the exterior improvement of commercial buildings, including new paint/stucco, new doors and windows, decorative awnings, signage, landscaping and lighting. One major project is underway and a second has been submitted. Both are shopping center rehabilitations. • Completed design plans to underground overhead utility lines along a segment of Barton Road. • Completed design of community signs to strengthen civic and cultural functions. • Acquired property along Barton Road and demolished abandoned on-site structures. • Acquired property along Vista Grande Avenue and demolished abandoned on-site structures for a future park facility. • Updated the BRSP design policies. • Initiated design to reconstruct Grand Terrace Road, west of the 1-215. • Started the preliminary design for a new baseball field. `" Housinq Page 4 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 • Blue Mountain Senior Villas and Senior Center. This project includes the construction of 120 affordable rental apartment units, a 7,000 square foot senior center, and a 2-acre passive park. The project will house 72 very low income, 36 low income, and 12 moderate income senior households. • Neighborhood Improvement Grant Program. The program grants up to$1,000 per household to purchase landscaping and irrigation materials for front yard improvements and exterior paint. The goal of this program is to reduce blight and property depreciation caused by deteriorated exterior paint, poor front yard maintenance and the lack of front yard landscaping. Though this program would not result in substantial rehabilitation to assist in meeting long-term affordable housing production goals, these efforts are critical to reducing the number of deteriorating and/or at-risk housing units in the City. Forty-five projects have been completed. • Canal Street Project. The Agency is continuing to work with a developer to construct approximately 23 rental units affordable to low income families, and purchased property in the R3 (Medium Density) zoning district. Page 5 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 REDEVELOPMENT PLAN GOALS Adopted in 1979 and amended in 1981, the Redevelopment Plan establishes a variety of goals for redevelopment of the Project Area. These goals frame the near term redevelopment objectives for the 2010-2014 Implementation Plan period. 1. Eliminate Blight: The elimination of blighting influences and the correction of environmental deficiencies in the Project Area. 2. Strengthen Commercial Use: Strengthen retail and other commercial functions. 3. Strengthen Economic Base: The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements. 4. Improve Parking and Open Space: The provision of adequate land for parking and open spaces. 5. Civic and Cultural Enhancement: Enhance the role of the City by strengthening civic, community and cultural functions. 6. Historical Preservation: Preserve artistically, architecturally, and historically worthwhile structures and sites. 7. Design Criteria: The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements that provide unity and integrity to the entire Project. 8. Strengthening Existing Housing: Strengthen and upgrade existing residential uses. 9. 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 the undergrounding of unsightly overhead utility lines. Page 6 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 PROJECTED,TAX INCREMENT REVENUES Table 2, below, reflects projected gross tax increment revenues that are anticipated during the 2010-2014 Implementation Plan period, which does not include deductions for pass through payments, debt services or administrative costs. As previously indicated, the Redevelopment Area is expected to reach its limit on the amount of tax increment during the Implementation Plan period and no tax increment will be generated in the last two years of the Implementation Plan planning period. This will limit the Agency's ability to reach the goals established when the Redevelopment Plan was adopted. Table 2: Projected Tax Increment Revenues 2010-2014 (Without Amendment) 2009-10 2010-11 2011-12 2012-13 2013-14 Tax Increment $7,288,333 $7,457,636 $4,486,796 $0 $0 Revenue Non-Housing $5 830,656 $5,966,109 $3,589,437 $0 $0 Revenue(Gross) ' Housing Set-Aside $1 457,667 $1,491,527 $897,359 $0 $0 Revenue (Gross) ' j The Agency is currently processing an amendment to the Redevelopment Plan that would, among other things, increase the amount of tax increment revenue that could be collected during the life of the Redevelopment Plan. Provided that the amendment to the Redevelopment Plan is adopted, tax increment revenues could be collected during the life of the Implementation Plan to allow the Agency to address the goals of the Redevelopment Plan. Table 3 reflects projected tax increment revenues that could be collected during the 2010-2014 Implementation Plad period with the adoption of the amendment to the Redevelopment Plan. Table 3: Projected Tax Increment Revenues 2010-2104 (With Amendment) 2009-10 2010-11 2011-12 2012-13 2013-14 Tax Increment Revenue $7,371,325 $7,62„770 $7,891,908 $8,163,971 $8,444,195 Non-Housing Revenue (Gross) $5'897,060 $6,102,216 $6,313,556 $6,532,794 $6,755,356 Housing Set-Aside $ 147,4265 $1,525,554 $1,578,382 $1,63,2794 $1,688,839 Revenue (Gross) ' Page 7 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 PROPOSED REDEVELOPMENT PROGRAM The list of potential non-housing redevelopment program activities scheduled for the next five years is shown in Table 4 below. The purpose of this list is to identify which blighting condition(s) a particular project is expected to address and is not intended as a complete or final list of needed improvements within the Project Area. The completion of identified redevelopment program activities will ensure continued progress toward the alleviation of existing blighting conditions by: Table 4: Proposed 2010-2014 Non-housing Redevelopment Projects Project Description Preliminary Cost Estimate Goals Achieved Mixed Use Specific Plan-Continue land assembly $2,000,000 1, 2, 3, 9 Barton Road Infrastructure Improvements $500,000 1, 2, 3, 5 High School Storm and Signal $230,000 1, 5, 9 Improvements Senior Center Commercial Kitchen Improvements $80,000 5 Grand Terrace Road Reconstruction $150,000 1, 3, 9 Grand Terrace Road Landscaping $40,000 1, 3 Land Assembly on Barton Road $500,000 1, 2, 3, 7 Barton Road Utility Undergrounding $275,000 1, 2, 3, 7, 9 Michigan Street Improvements $400,000 1, 2, 9 Update of the BRSP $150,000 1, 2, 4, 6, 9 Commercial Improvement Grant Projects $300,000 1, 2, 3, 7 Public Message Sign Project $70,000 2, 3, 5 Baseball Park Project $175,000 4, 5 Vista Grande Park Project $70,000 4, 5 Page 8 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 HOUSING SET-ASIDE REQUIREMENTS The Grand Terrace Redevelopment Agency is required to set-aside twenty percent (20%) of its annual tax increment into a low- and moderate-income housing fund. This set-aside is referred to as the Low/Mod Housing Fund within the Implementation Plan. The purpose of the Low/Mod Housing Fund is to produce, increase, improve and preserve the community's supply of low- and moderate-income housing. In carrying out the annual housing set-aside requirements, the Agency may exercise any or all of its powers, including the following: • Acquire real property or building sites subject to the provisions of H&S Code § 33334.16. • Improve real property or building sites with on-site or off-site improvements, but only if the improvements directly and specifically improve or increase the community's supply of low or moderate income housing. • Donate real property to private or public persons or entities. • Finance insurance premiums. • Construct buildings or structures. • Acquire buildings or structures. i • Rehabilitate buildings or structures. • Provide subsidies to, or for the benefit of, very low-income households, as defined by H&S Code § 50105, lower income households, as defined by H&S Code § 50079.5, or persons and families or low or moderate income, as defined by H&S Code § 50093, to the extent those households cannot obtain housing at affordable costs on the open market. (Housing units available on the open market are those units developed without direct government subsidies.) • Develop plans; pay principal and interest on bonds, loans, advance, or other indebtedness or pay financing or carrying charges. • Maintain the community's supply of mobile homes. • Preserve the availability to lower income households of affordable housing units in housing developments which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates. • The agency may use these funds to meet, in whole or in part, the replacement housing provisions-of state redevelopment law. • The Low/Mod Housing Fund can also be used for planning and general administrative costs, when directly related to programs and activities associated with H&S Code § 33334.2(e). This includes the following activities: Page 9 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 o Costs incurred for salaries, wages, and related costs of the Agency's staff or for services provided through inter-agency agreements, and agreements with contractors, including usual indirect related costs. o Costs incurred by a non-profit corporation, which are not directly attributable to a special project. o Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project which are authorized under subdivision (3) of H&S Code § 33334.2 and which are incurred by a non-profit housing sponsor and are not planning and administrative costs for the purpose of this Section, but are, instead, project costs. Page 10 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 PROPOSED AFFORDABLE HOUSING PROGRAM The list of potential affordable housing program activities scheduled for the next five years is shown in Table 5, below. The purpose of this list is to identify which blighting condition(s) a particular project is expected to address and is not intended as a complete or final list of needed improvements within the Project Area. Table 5: Proposed 2010-2014 Affordable Housing Program Project Description Preliminary Cost Estimate Goals Achieved Canal Street Rental Housing $1,000,000 8 Neighborhood Improvement Grant Program $150,000 8 Purchase, Rehab and Re-sell Program $400,000 8 Home Improvement Loan Program $150,000 8 Mobile Home Park Upgrade and/or Expansion Program $150,000 8 Senior Home Repair Program $100,000 8 Page 11 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 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: Housing 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 very low, low and moderate income households. Replacement Housing—another legal obligation for redevelopment agencies is to ensure that any housing units destroyed or removed as a result of an Agency redevelopment project that housed low to moderate income households be replaced within four years at the same household income levels. Expenditures by Household Types—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. Household Income Limits - Area median income is established by the Secretary.of Housing and Urban Development, and adopted by the California Department of Housing. The Income limits are generally adjusted annually, and are based on the Section 8 income limits for the Riverside-San Bernardino-Ontario, CA SMA. Extremely low income households are defined as families and persons whose income does not exceed 30% of area median income. Very low income households are defined as families and persons whose income does not exceed 50% of area median income. While low income households are defined as families and persons whose income does not exceed 80% of area median income. Lastly, moderate income households are defined as families and persons whose income does not exceed 120% of area median income. Page 12 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area .Five-Year Implementation Plan 2010 through 2014 Table 6 represents the 2009 income thresholds for the various target housing populations in the City. Table 6: Income Table* Extremely Low Very Low Low Income Moderate Household Income Income Income Size (30%of Area (50%of Area Media of Area (120%of Area Median Income) Median Income) MeMedian Income) Median Income) 1 14,000 23,300 37,300 54,200 2 16,000 26,650 42,650 61,900 3 18,000 29,950 47,950 69,650 4 20,000 33,300 53,300 77,400 5 21,600 35,950 57,550 83,600 6 23,200 38,650 61,850 89,800 7 24,800 41,300 66,100 96,000 8 26,400 43,950 70,350 1,02,150 *2009 Median Income$64,566 for a household size of four persons. � Source: California Department of Housing Page 13 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 HOUSING COMPLIANCE PLAN Health and Safety Code § 33490(a)(2)(A) requires that the Agency develop a Compliance Plan to ensure that the required number of very low, low and moderate income housing units will be produced or substantially rehabilitated within the Project Area. Available Low/Mod Housina Funds As of July 1, 2009, the Agency had approximately$998,000 available in its Low/Mod Housing Fund. To estimate the Agency's ability to develop and preserve low and moderate income housing, a projection of Housing set-aside revenue was developed for the Five-Year Implementation Plan planning period (Table 7). Projections were based on anticipated tax increment revenue and known fixed fund obligations. These monies are allocated towards the preservation, development and/or rehabilitation of very low, low and moderate income housing units Table 7: Projected Net Annual Low/Mod Housing Fund Revenue 2010-2014 2010 2011 2012 2013 2014 Gross Set-aside $1,457,667 $1,491,527 $897,359 $0 $0 Estimated Debt $619,301 $619,268 $667,792 $0 $0- Service Estimated Residual for Administration and $838,365 $872,259 $229,567 $0 $0 Programs Based on the above income projection table, and the current balance of$998,000 in the Low/Mod Housing Fund, the Agency anticipates that it will have approximately$2,938,191 in Low/Mod Housing Funds available during the planning period. This amount is net of anticipated debt service, and prior to consideration of operational and personnel expenses. However, as indicated the Agency will no longer be able to collect tax increment revenue beyond 2012, and no housing set aside revenue will be collected to implement housing programs and meet the Agency's housing obligations within the last two years of the planning period. This $2,938,191 constitutes the funds that are available to provide housing program and assist the City in meeting its inclusionary housing requirements. Although it would be difficult to meet its housing obligations with less than $3 Million for program funding, the Agency is still expected to meet its housing obligation throughout the planning period and the life of the Redevelopment Plan. The Agency would need to seek other funding sources to produce affordable housing units, such as, but not limited to, Federal HOME Funds, State Low Income Housing Tax Credits, Multi-Family Mortgage Revenue Bonds. Page 14 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 Housing Production To estimate the number of housing units that need to be affordable to very low, low and moderate income households the Agency estimated the total number of units to be constructed or substantially rehabilitated in the Project Area and applied formulas established in State law. Prior to the time limit on the effectiveness of the redevelopment plan, at least 15 percent of all new and substantially rehabilitated units developed within a project area under the jurisdiction of an Agency, by public or private entities or persons other than the Agency, shall be available at affordable housing cost to households of low or moderate income. Not less than 40 percent of the 15 percent the dwelling units must be affordable to very low income households. Table 8 summarizes the production goals over various time periods as required by Redevelopment ' Law. The number of 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. Table 8: Actual and Projected Housing Production Needs by Time Period Actual/Assumed Housing Units Required,Affordable Units Time Period Constructed and Substantially Rehabilitated in Project Area Total .Very Low ' Plan Adoption to 1995 1,336 200 80 Previous 10-Year Period' 1995 to 2004 123 18 7 10-Year Planning Period 2005 to 2009 (Actual)2 172 26 10 2010 to 2014(Forecast)3 45 7 3 2015 to 2017(Forecast)3 25 4 2 Redevelopment Plan Duration 1 981-201 74 1,701 255 102 Notes: ' All required units based on 15 percent of actual/assumed units developed by entities other than the Agency. No units developed by the Agency. 2 Total units produced within the Project Area based on actual units per City planning department or projections by Agency Staff. Includes 120 units at the Blue mountain Senior Villas. 3 Affordable units produced based on estimated affordable units produced (or covenants purchased) during each planning period inside or outside the Project Area. 4 The surplus affordable units in a ten year period may be applied against the unit production requirements during the following ten-year compliance period,while any deficit affordable units must be first produced during the following ten-year compliance period. As shown above, based on actual housing production from adoption of the Redevelopment Plan to 2009, the Agency has an affordable housing production need of 244 affordable housing units, including 97 low income units. It is also forecasted that within this Five-year Implementation Plan planning cycle (2010 to 2014) another 4 affordable units (including two 2 low income units) will be Page 15 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 required. In total, the Agency's inclusionary housing obligation over the life of the Redevelopment Plan is 255 affordable housing units with at least 102 of those units affordable to low income households. Fulfillment of these production goals is shown in Table 9. Table 9: Fulfillment of Affordable Housing Production Requirements by Time Period Time Period Units Required Units Produced Additional Units Net Surplus (see Table 8) Required Units Produced Total VL' Total VL Total VL Total VL Plan Adoption to 1995 200 80 0 0 200 80 0 0 Previous 10 Year Period 18 7 118 7 0 0 100 0 1995 to 20042 10-Year Planning Period3 2005 to 2009 (Actual)4 26 10 113 29 0 0 87 19 2010 to 2014 (Projected) 7 3 15 8 0 0 8 5 2015 to 2017 4 2 - - - - - - Redevelopment Plan 255 102 246 44 9 58 - - Duration (1981-2017)5 Notes: VL=Very low income 2 Affordable Units Required based on actual total Units Produced during the planning period and includes 111 units produced at Highland Apartments and 7 units produced from Blue Mountain Senior Apartments. 3 The surplus affordable units in a ten-year period may be applied against the unit production requirements during the following ten-year compliance period,while any deficit affordable units must be first produced during the following ten-year compliance period. ° Affordable units required based on actual total units produced during the planning period and includes 113 units produced at Blue Mountain Senior Apartments. 5 The Redevelopment Plan's effectiveness currently expires July 15,2017. As shown in Table 9, the Agency has been able to fulfill the majority of its obligation through the construction of the Blue Mountain Senior Villas. However, it is also anticipated that at the end of the term of the Redevelopment Plan there is the potential for a deficiency of 9 low income units, and 58 very low income units. 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, the Canal Street Rental Housing project is expected to be constructed within this Implementation Plan period and will fulfill the Agency's affordable housing obligation during the Five-Year planning period, as well as provide a surplus of 13 affordable units. However, as indicated, at the end of the Redevelopment Plan (2017) the Agency may still have an outstanding housing production obligation of 67 units. Therefore, the Agency will continue to work diligently to fulfill the remaining affordable housing production deficit on an annual basis by facilitating the creation of projects that feature long-term affordability covenants. Page 16 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 Replacement Housinq Pursuant to Section 33413 of CRL, whenever dwelling units for persons or families of low or moderate income are displaced or removed from the low and moderate income housing market as part of an Agency assisted redevelopment project, the Agency must replace the same number of units affordable to the same income levels of those removed within four years of their removal. During the Implementation Plan period, the Agency does not anticipate that any Agency-assisted projects will result in the displacement or removal of affordable housing units. Consequently, the Agency does not anticipate that any housing will need to be replaced. Proportionality Reouirements At the beginning of the Implementation Plan period on July 1, 2009, the Agency's Low/Mod Housing Fund had an available balance of$998,000. Over the five-year period ending on June 30, 2014, staff conservatively estimates that the Project Area will generate approximately$1,940,181 in 20-percent housing set aside revenue. Pursuant to Section 33334.4(a) of the Law, Low/Mod Housing Fund expenditures on low and very low income housing projects must be at least in proportion to the City's fair share of the Regional Housing Need Assessment (RHNA). The number of units required in each income category may be adjusted for units not assisted by the Agency that feature 55 year (for tenant-occupied units) or 45 year (for owner-occupied units) covenants. According to the City's 2006-2014 Draft Housing Element, the current RHNA figures for the City indicate a Citywide need for 80 very low income units, 55 low income units, and 63 moderate income units. Based on these figures and the proportionality requirements of CRL, at least 40% of Agency's Low/Mod Housing Fund expenditures must target very low income households, 20% must target low income households, and at least 32% must target moderate income households. Section 33334.4(b) requires that Low/Mod Housing Fund expenditures for senior housing also be in proportion to the community's population of seniors according to the most recent Census. Based on the 2000 Census, 1,245 (10.7%) of the City's 11,626 residents were over the age of 65. As such, not more than 10.7% of the Agency's available Low/Mod Housing Fund revenues may be expended on senior housing projects. The remaining 89.2% must be expended on non-senior housing projects. Page 17 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 � Proportionality Expenditures based on Household Income GroUDS Table 10 presents the expenditure requirements based on proportionality requirements for the 2010 to 2014 Implementation Plan period. Table 10: Thresholds for Housing Program Expenditures Household Type Census/RHNA Allocation Minimum Percentage of Housing Set- Household Aside Expenditures over Implementation Plan period Total Population of the City 11,626 Total Population Under Age 65' 10,381 89.3% Total Population Over Age 65 1,245 10.7% Very Low Income Households 80 40%2 Low Income Households 55 20%2 Moderate Income Households 63 32%2 Total 198 100% Notes: ' Percentage of total households under the age of 65 based on the 2000 census data (www.census.00v). 2 Percentage of households in each income-level based on the City of Grand Terrace Regional \\v/ Housing Needs Assessment for 2007 through 2014. Expenditures after 2006 are subject to new RHNA numbers as shown above.Targeting requirements prior to 2006 based on prior RHNA Housing Needs Allocation (31%for Very low-income and 24%for Low-income Housing Units). Using the data in Table 10, Table 11 reflects the established thresholds for the use of Low/Mod Housing Funds for programs and capital expenditures based on the Agency's estimated $2,938,191 in the Low/Mod Housing Fund through the Implementation Plan planning period, and based on the City's RHNA allocation for affordable housing units. Table 11: Low Mod Housing Fund Expenditures Based on Income Category Income Category RHNA Allocation Minimum Projected Expenditure Required Very Low Income 80 $1,175,276 Low Income 55 $587,638 Moderate Income 63 $940,221 Above Moderate Income 131 N/A Total 329 $2,703,135 Page 18 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 These proportionality requirements affect expenditures over a ten-year period, although the law permits the compliance initially for a period beginning in January 2002 and ending in June 2014. Table 12 documents the amount of low and moderate income housing fund revenue used since January 2002 for these income categories.: Table 12: Housing Expenditures and Proportionality since 2002' Time Household Income Category Period Very Low Low Moderate Total Expenditures 2002 through $4,125 0.7% $3,975 0.7% $600,204 98.7% $608.304 20004 2005 $176,964 40.5% $170,529 39.5% $89,244 20.4% $436,738 2006 $1,128,155 45.8% $1,087,132 44.2% $246,143 10.0% $2,461,430 2007 $410,543 45.8% $395,614 44.2% $89,573 10.0% $895,730 2008 $1,561,742 45.8% $1,504,951 44.2% $340,744 10.0% $3,407,436 2009 $1,171,313 45.8% $1,128,720 44.2% $255,559 10.0% $2,555,593 Total $4,452,843 43% $4,290,921 41% $1,621,467 16% $10,365,231 Notes: ' Based on Agency's Annual Housing and Community Development Reports. 2 Targeting requirements prior to 2006 based on prior RHNA Housing Needs Allocation (31%for Very low- income and 24%for Low-income Housing Units). Expenditures after 2006 subject to new RHNA numbers as shown in prior table. Proportionality Expenditures based on Senior and Non-Senior Population Based on the distribution of the City's senior and non-senior population, a minimum of $2,623,805 (89.3%) of the estimated Low/Mod Housing Fund available for housing programs and capital expenditures must benefit persons and households under the age of 65. Table 13: Proportionality Expenditure for Senior and Non-Senior Population Age Category %of Total Population Minimum Projected Expenditure Required Under 65 89.3% $2,623,805 65 and Over 10.7% $314,386 Page 19 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 State law also requires a recap of the number of projects assisted by the Low/Mod Housing Fund over the past implementation period, divided by family projects (under age 65) and senior projects (restricted to residents age 65 and older). Table 14 summaries these statistics from the last planning period (2005 to 2009). This Table shows that 100% of the Low/Mod Housing Funds expended by the Agency during the previous Implementation Plan were used for senior.housing. Table 14: Proportionality Expenditures Based on Senior and Non-senior Population Housing Units Assisted by Housing Set-Aside Fund Set-Aside (July 2005 to June 2009) Expenditures Extremely Very Low Low Moderate Total Low Family Projects $0 0 0 0 0 0 (Non-Senior) 0% Senior Projects $9,320,189 0 55 53 12 120 Total $9,320,189 0 55 53 12 120 (100%) r� Housina Units Constructed Without Low/Mod Housina Funds 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 45 years for ownership housing or 55 years for rental housing) during the 2005-2009 Implementation Plan. However, because the Agency will not generate any revenue past 2012, it is likely that the Agency will need to seek other funding sources to meets is affordable housing obligation. Page 20 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 HOUSING PRODUCTION GOALS CRL requires that the Agency provide a Ten-Year Housing Compliance Plan that depicts the Agency's housing production goals. The Ten-Year Compliance Plan began with the previous 2005 to 2009 Implementation Plan and continues through to 2014. Table 15 shows the actual number of affordable housing units developed, rehabilitated, or assisted by the Agency between 2005-2009, while Table 16 represents a projection of the housing units to be developed, rehabilitated, or assisted by the Agency over the five-year period of the 2010-2014 Implementation Plan. Table 15: 2005-2009 Housing Production Housing Units Year Low/Mod Income Very Low Income 2005 0 0 2006 0 0 2007 0 0 2008 0 0 2009 65 55 Total 65 55 Table 16: 2010-2014 Production Goals' Housing Units Year Low/Mod Income Very Low Income 2010 0 0 2011 7 5 2012 8 3 2013 2 1 2014 2 1 Total 19 10 Notes: ' The degree to which the stated five-year housing production goals can be met is dependent on market conditions and the availability of supplemental funding from identified resources. Page 21 of 22 Adopted December 8, 2009 Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 PLAN ADMINISTRATION The Agency of the City of Grand Terrace shall be responsible for administering this Implementation Plan and for monitoring redevelopment activities or programs undertaken pursuant to the Redevelopment Plan and this Implementation Plan. PLAN REVIEW At least once during the five-year term of this Implementation Plan, the Agency shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the Implementation Plan, and evaluating the progress of Agency Activities.. The public hearing shall be held no earlier than two years and no later than three years after the date of adoption of this Implementation Plan. Notice of the public hearing to review the Redevelopment Plan and Implementation Plan shall be published pursuant to Section 6063 of the Government Code and posted in at least four permanent places within the Merged Project Area for a period of at least three weeks. Publication and posting of the notice shall be completed not less than 10 days prior to the date set for hearing. Pursuant to Article 16.5, this Implementation Plan may from time to time be amended after holding a public hearing on the proposed amendment. Page 22 of 22 Adopted December 8, 2009 Exhibit C Draft Owner Participation Rules GRAND TERRACE REDEVELOPMENT AGENCY 22795 Barton Rd, Grand Terrace, CA 92313 4 DRAFT OWNER PARTICIPATION RULES FOR PROPERTY `� OWNERS, OPERATORS OF BUSINESS AND i \ BUSINESS TENANTS Grand Terrace Community Redevelopment Project Area As Amended on January 12, 2010 ROSENOW SPEVACEK GROUP, INC. www.webrsg.com GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules TABLE OF CONTENTS I. (100) PURPOSE AND INTENT.............................................................................................1 II. (200) DEFINITIONS..............................................................................................................1 III. (300) PROCEDURES FOR OWNER PARTICIPATION.........................................................3 (301) Solicitation of Participation by the Agency to Owners; Submission of Statement of Interest by Owners.................................................... 3 (302) Submission and Form of Development Proposals................................................. 3 (303) Agency Board Evaluation of Development Proposals Submitted by Owners.....4 (304) Unsolicited Submittal of Statements of Interest and Development Proposals by Owners................................................................. 6 (305) Concurrent Consideration of Development Proposal(s) Submitted by Non-Owners..........:....................................................... 6 (306) Negotiations Toward Execution of Owner Participation Agreement or Other Agreement........................................................ 6 (307) Failure to Respond Waives and Relinquishes Owner Participation Rights......... 7 (308) Agency Action on Agreement for Development with Non-Owner; Limitations on Re-Opening Owner Participation Process....... 7 - (309) Additional Regulations Pertaining to Owner Participation and Non-Owner Participation............................................................................................................................. 8 (310) Solicitation of Owner Participation Not Required in Development of Owner's Property by an Owner and Certain Other Instances... 8 IV. (400) REENTRY PREFERENCES FOR DISPLACED BUSINESSES....................................8 (401) Notice to Displaced Businesses............................................................................... 8 (402) Agency Extension of Preferences............................................................................9 V. (500) PROCEDURE FOR AMENDING OWNER PARTICIPATION RULES...........................9 EXHIBITA............................................................................................................................................ 10 EXHIBITB............................................................................................................................................ 12 EXHIBIT C -Project Area Map........................................................................................................... 14 �4 9RSG i GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules I. (100) PURPOSE AND INTENT These Owner Participation Rules have been promulgated to implement the requirements of the Community Redevelopment Law, California Health and Safety Code Section 33000, et. seq., and to implement the provisions of the Amended and Restated Redevelopment Plan ("Amended Plan") for the Grand Terrace Community Redevelopment Project Area, particularly with respect to participation by property owners ("Owner") and extension of reentry preferences to businesses in the Grand Terrace Community Redevelopment Project Area. The Grand Terrace Community Redevelopment Project Area ("Project Area") incorporates all the territory within the boundaries of the original Grand Terrace Community Project Area ("Original Area") as adopted on September 27, 1979, and the area added to the Original Area on July 15, 1981. These Owner Participation Rules shall be applicable to the Project Area, as it is currently proposed and as may be amended in the future. These rules have been formulated to provide a consistent and uniform procedure and process for owner participation and business reentry for the Project Area. The objectives of these Owner Participation Rules are: (i) to implement the owner participation process in connection with the Project Area by encouraging, soliciting, and, as to participants selected by the City of Grand Terrace Redevelopment Agency ("Agency"), carrying out by Agreement, participation in redevelopment of the Project Area, and (ii)to extend and establish reasonable preference to persons who are engaged in business in the Project Area, if they are displaced by the Agency, to reenter in business within the Project Area should they be required to move as a result of a redevelopment project undertaken by the Agency. These Owner Participation Rules provide to Owners a reasonable opportunity to identify their interest in owner participation, to submit Development Proposals, to receive good faith consideration by the Agency of complete Development Proposals, and, as selected by the Agency, to participate in the redevelopment of the Project Area. These Owner Participation Rules also allow for negotiations for the redevelopment and participation in the Project Area by persons and entities other than Owners. II. (200) DEFINITIONS For the purposes of these Owner Participation Rules, the following terms shall have the following definitions: A. "Agency" means the City of Grand Terrace Redevelopment Agency, a public body, corporate and politic. B. "Agency Activities" means the acquisition of real property by the Agency or by a private party pursuant to an Agreement with the Agency. C. "Agreement" means and includes any Owner Participation Agreement, Disposition and Development Agreement, Affordable Housing Agreement, or any other agreement approved by the Agency Board of Directors under which the Agency commits to participate and/or provide financial assistance to a proposed redevelopment project. D. "Amended Plan" means the Amended and Restated Redevelopment Plan for the Grand Terrace Community Redevelopment Project Area. E. 'Business" or"Businesses" mean any person, persons, corporation, association, partnership, limited liability company, or other entity lawfully engaged in business within the Project Area. F. "City" means the City of Grand Terrace, California, a municipal corporation. 9RSG 1 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules G. "City Council" means the legislative body of the City of Grand Terrace. H. "Development Proposal" means a complete and detailed proposal for a development or redevelopment project or other participant proposal which is timely submitted to the Agency, in accordance with, and meeting the requirements of, Section 302 hereof. I. "Displaced Business" means a Business, which has been displaced by Agency notice and action in implementation of a public program or project in conformance with applicable laws. J. "Executive Director" means the Executive Director of the Agency, or his/her designee. K. "Implementation Plan" means the effective Five-Year Implementation Plan adopted by the City of Grand Terrace Redevelopment Agency, as may be further amended from time to time. L. "Non-Owner" means any person or entity who is not an Owner in the Project Area, but is interested in the submittal and consideration of a Development Proposal by the Agency. M. "Owner" or "Owners" mean any person, persons, corporation, association, partnership, limited liability company or other entity (a) holding fee title of record to real property in the Project Area, or (b) holding a proprietary interest in a cooperative housing project within the Project Area which includes the right to occupy a dwelling unit within the cooperative housing project. N. "Owner Participation Agreement" means a type of Agreement, which is entered into between the Agency and an Owner in accordance with the provisions of the Amended Plan and the Owner Participation Rules as set forth herein. O. "Owner Participation Rules" means these rules governing owner participation and reentry preferences in the Project Area. P. "Participant" means an Owner, which has entered into an Owner Participation Agreement with the Agency. Q. "Project Area" means the territory within the boundaries of the Grand Terrace Community Redevelopment Project Area including the original Grand Terrace Community Redevelopment Project Area adopted September 27, 1979, and the area added to the original Grand Terrace Community Redevelopment Project Area on July 15, 1981. R. "Statement of Interest" means a statement by an Owner that such Owner is interested in participating in the development or redevelopment of property or other form of participation within the Project Area. A Statement of Interest, whether solicited by the Agency or submitted by an Owner on its own initiative, must be in writing, and substantially in the form of the Owner's Statement of Interest to Participate which is attached and incorporated as Exhibit "A" to these Owner Participation Rules, and which may be updated from time to time by the Executive Director. S. "Statement of Interest in Business Reentry" means a statement by a displaced or potentially displaced Business that such Business is interested in reentry into the Project Area. A Statement of Interest in Business Reentry, whether solicited by the Agency or submitted by a Business on its own initiative, must be in writing, substantially in the form of the Statement of Interest in Business Reentry which is attached and incorporated as Exhibit "B" to these Owner Participation Rules, and which may be updated from time to time by the Executive i Director. 9RSG 2 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules III. (300) PROCEDURES FOR OWNER PARTICIPATION Owners within the Project Area who desire to exercise their participation rights shall follow the procedures which are set forth in this Section III. (301) Solicitation of Participation by the Agency to Owners; Submission of Statement of Interest by Owners. A. Prior to entering into an Agreement with a Non-Owner, or with another Owner who has submitted an unsolicited proposal, for the development or redevelopment of a particular site within the Project Area, the Agency, through its staff, shall notify those Owners within the Project Area on whose property the project site is proposed, of the opportunity to submit a Statement of Interest for the development of the site, or other participation proposal. The Agency shall send written notice via certified or registered United States mail to those Owners whose property, within the Project Area, is the subject of the proposed development. Owners so notified by mail shall be given thirty (30) days, or any longer period as the Agency may specify in the notice, from the date the notice is mailed by the Agency to submit a Statement of Interest to the Agency. B. Not later than thirty (30) days after the end of the period set forth above in Section 301 for timely submittal of Statements of Interest, the Agency staff shall acknowledge receipt of the Statements of Interest by sending confirming letters to the Owners who have submitted such Statements of Interest. Such written acknowledgment does not and shall not obligate the Agency to select an Owner/applicant, or to ultimately reach agreement with any Owner/applicant, or to exclusively negotiate with any Owner/applicant. (302) Submission and Form of Development Proposals ( A. Owners who have timely submitted a Statement of Interest may submit a more detailed Development Proposal subject to the following time periods and procedures: i. Within forty-five (45) days after the date of mailing of the Agency confirmation letter acknowledging receipt of the Statement of Interest, any Owner who has timely submitted a Statement of Interest must submit to the Agency a Development Proposal if such Owner wishes to continue with the process. B. Development Proposals shall include the following: i. Construction and development pro forma, a site plan, a business/operating plan, developer qualifications, a narrative description of the market support for the proposed project, an operating pro forma, as applicable, and an explanation of the economic benefits of the proposed project to the Agency, the City, and the community. ii. The proposed uses must conform with the requirements, intent, goals, and objectives of the Amended Plan, the Implementation Plan, the City General Plan, any applicable redevelopment criteria specified by the Agency in the notice sent to Owners as provided in Section 301, zoning, other applicable development standards, and other applicable federal, state and local laws, codes and regulations. C. The Development Proposal submitted by an Owner may provide for an Owner to participate in substantially the same location as the Owner's present use, may provide for expansion of - the Owner's present use by retaining all or portions of Owner's property and acquiring adjacent property, may provide for the Owner's participation in a location within the Project Area different from the location in which the Owner's property is currently located, or may 9RSG 3 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules r r propose some other form of participation by the Owner in the redevelopment of the proposed development site. D. Owners shall provide such additional information as may be reasonably requested by the Executive Director and Agency staff. E. The Agency's staff will be available prior to the end of the 45 day deadline for submissions of Development Proposals to discuss owner participation, respond to questions, and assist Owners in the preparation of Development Proposals; provided that the Owner in all instances (and not the Agency staff) shall be responsible for the content, form, and preparation of any Development Proposal. F. The Agency, through its staff, will review Development Proposals upon receipt thereof, and shall notify Owners whether the Development Proposals submitted comply with the requirements of these Owner Participation Rules and have been determined to be complete or incomplete. In the event the Agency staff notifies an applicant submitting a Development Proposal that the Development Proposal is incomplete or that additional information is required, such applicant may be allowed fifteen (15) days from such Agency staff notification to complete and.resubmit its Development Proposal. The failure to provide such additional information and resubmit the revised Development Proposal in a timely manner shall automatically disqualify such Development Proposal from any further consideration and shall be deemed a rejection by the Agency of such proposal. Notwithstanding the foregoing, initial Development Proposal submissions which do not include or address all of the required items may, in the discretion of the Agency Staff, be rejected without an opportunity for resubmission. (303) Agency Board Evaluation of Development Proposals Submitted by Owners A. The Agency Board shall consider in good faith and without discrimination all Development Proposals timely submitted by Owners (who previously also timely submitted a Statement of Interest), and determined by Agency staff to be complete, at a regular or special Agency meeting held at the earliest feasible time but not later than sixty (60) days after the conclusion of the Development Proposal submission period described in Section (302)(A) above and as may be extended pursuant to Section 302 (F). After consideration of the Development Proposals, the Agency Board may, in the exercise of its discretion, accept, conditionally accept, continue the item for additional review, or reject any or all Development Proposals submitted by Owners, and/or may select, if at all, a Development Proposal in accordance with this Section 303 and these Owner Participation Rules. B. In the exercise of its discretion, the Agency acknowledges that its primary purpose, objective, and duty is to carry out and implement the Amended Plan and to eliminate blight in the interest of the health, safety and welfare of the community. The Agency's decision to accept, conditionally accept, or reject any Development Proposal will be made in consideration of such purpose, objective, and duty. C. Development Proposals shall be evaluated by the Agency with consideration of factors determined by the Agency to be relevant in carrying out its duties to implement the Amended Plan and the Implementation Plan, which may include, but are not limited to, some or all of the following factors (the following factors are not listed in any particular order of ranking): i. Conformity of the Development Proposal, including proposed uses, with the z requirements, intent, goals, and objectives of the Amended Plan, the Implementation Plan, the City General Plan, the Specific Plans, applicable 9RSG 4 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules redevelopment criteria specified by the Agency in the notice sent to Owners as provided in Section 301, zoning, other development standards, and other applicable federal, state and local laws, codes and regulations; ii. Quality of design and project concept; iii. Whether the Owner has proposed participation in the same location as the proposed development site or in a different location; iv. The employment opportunities and economic benefits to the.Agency and to the City which can be reasonably expected to result from the implementation of-the Development Proposal; V. The qualifications of the Owner/applicant or its developer entity team proposed to develop the project described in the Development Proposal, including financial capacity to undertake the project, prior experience with similar development, quality of prior development projects, degree of site control, ability to obtain financing, ability to abide by Agency design standards and development controls, and readiness to proceed; vi. The estimated cost, if any, of City and/or Agency financial involvement, including the provision of City and/or Agency public services, subsidies, or public improvements required if the Development Proposal is accepted, and the availability of sufficient Agency and/or City funds to,pay such costs; vii. The economic benefits to the Agency, the City, and the community, as determined by a cost/benefit analysis, if the Development Proposal were to be approved and the proposed project is implemented; viii. The effect of the Development Proposal on elimination of blighting conditions within the Project Area and the upgrading of uses; ix. The probability of successful implementation of the Development Proposal; X. The time schedule for completion of the proposed project; A. The potential for displacement of persons and/or businesses and the need for relocation of Project Area residents, tenants, owners, or business operators in the implementation of the Development Proposal, and the need to create replacement housing for destroyed or removed housing units or projects; xii. The need for acquisition of interests in real property for the implementation of the Development Proposal, and the willingness of existing owners and holders of other property interests to sell such property; xiii. The environmental benefits or impacts of the proposed development, and evaluation of the cost and method of mitigation of such impacts, if any; xiv. The impact of the Development Proposal on existing buildings and improvements; and xv. The merits of the Development Proposal relative to the merits of other Development Proposals for the same proposed development site or for other sites in the Proposed Merged San Jacinto Project Area. RSG 5 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules 1, D. Nothing in the Owner Participation Rules shall obligate the Agency to select any Development Proposal. All costs associated with submitting a Statement of Interest and any subsequent Development Proposal shall be borne solely by the Owner or Non- Owner submitting such document(s). (304) Unsolicited Submittal of Statements of Interest and Development Proposals by Owners A. Under these Owner Participation Rules, Owners may submit Statements of Interest to the Agency on their own initiative, rather than through the solicitation of interest by the Agency as described in Section 302 above, even if the Agency has not notified Owners of a development opportunity on a proposed development site. B. Owners who have submitted a Statement of Interest under Section 304 (A) above will be notified by Agency staff within thirty (30) days of submittal of the Statement of Interest that such Owner may submit a Development Proposal to the Agency also at their own initiative, even if the Agency has not notified Owners of a development opportunity for a proposed development site. Except as otherwise provided in this Section 304, Development Proposals submitted pursuant to an unsolicited Statement of Interest shall be processed and evaluated in accordance with and subject to Sections 302 and 303. C. The Agency will not accept or consider untimely or unsolicited Statements of Interest and/or Development Proposals concerning real property in the Project Area for which the Agency has already selected an Owner or a Non-Owner for development or redevelopment of such particular site in conformity with these Owner Participation Rules. D. Submission of an unsolicited Statement of Interest or follow-up Development Proposal - shall not obligate the Agency to select or approve any development plan, proposal or application. (305) Concurrent Consideration of Development Proposal(s) Submitted by Non-Owners A. Any Non-Owner may submit to the Agency a Development Proposal for the proposed development of property within the Project Area at the same time that Owners are submitting Development Proposals solicited by.the Agency pursuant to these Owner Participation Rules. B. The Agency may, but is not required to, evaluate, consider, and take action on such Development Proposal(s)from one or more.Non-Owners concurrently with its evaluation, consideration, and action on the Development Proposals solicited by the Agency and submitted by Owners under these Owner Participation Rules. (306) Negotiations Toward Execution of Owner Participation Agreement or Other Agreement The Agency shall use good faith efforts to negotiate toward and enter into a mutually acceptable Owner Participation Agreement (or other Agreement, as applicable) with the selected Owner or Non-Owner, as the case may be, whose Development Proposal has been selected or conditionally selected by the Agency Board, if any. Each Agreement shall contain provisions necessary to ensure that the Development Proposal will be carried out with such covenants, conditions and restrictions as the Agency reasonably requires. Each Agreement will require the selected Owner or Non-Owner, as applicable, to execute and record such further documents as the Agency may require in order to ensure conformance with the Community Redevelopment Law and other applicable laws, to provide record notice of covenants, conditions and restrictions which are imposed by the Agreement, and to provide security for the obligations of the selected Owner or Non-Owner. All Agreements with an Owner shall become effective only when executed by the Owner/Participant and duly approved by the Agency Board. If negotiations with the selected Owner or Non-Owner does O RSG 6 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules not lead to an Agreement within a reasonable time, the Agency may, in its discretion, select a different Development Proposal from among the prior submissions, may solicit new Development Proposals from those previously submitting Development Proposals, or may start the process anew. (307) Failure to Respond Waives and Relinquishes Owner Participation Rights Subject to the notice requirements of these Owner Participation Rules, an Owner who does not submit a Statement of Interest or a Development Proposal meeting the requirements of Section 302 and Section 303 above within the required time periods shall be deemed to have conclusively waived and relinquished any right of the Owner to be considered as an Owner or Participant with respect to a proposed development site pursuant to the Amended Plan and these Owner Participation Rules. (308) Agency Action on Agreement for Development with Non-Owner; Limitations on Re- Opening Owner Participation Process A. The Agency may enter into an Agreement with any Non-Owner for the development or rehabilitation of property implementing a Development Proposal submitted by a Non- Owner, after one of the following has occurred: i. The Agency has given notice of a development opportunity as set forth in Section 301 hereof and has received no Statements of Interest from Owners during the time period set forth in Section 301 for submission of Statements of Interest; or ii. The Agency has given notice of a development opportunity as set forth in Section 301 hereof and has received one or more Statements of Interest from Owners during the time period set forth in Section 301 for submission of Statements of Interest, but has received no Development Proposals during the time period set forth in Section 301 for submission of Development Proposals; or iii. The Agency has given notice of a development opportunity as set forth in Section 301 hereof and has received one or more Development Proposals from Owners for the specified site, and the Agency has considered and rejected all such Owner-submitted Development Proposals pursuant to Section 303 hereof. B. Any substantial changes in a Development Proposal from an Owner or a Non-Owner selected by the Agency subsequent to the selection of such Development Proposal shall not require or be construed to require the Agency to re-notify any Owners of property within the Project Area of the opportunity to submit or re-submit a Statement of Interest or a Development Proposal for the development of the site. Once the Agency has selected a Development Proposal from and entered into an Agreement with an Owner or a Non- Owner, or if negotiations with such Owner or Non-Owner do not lead to an Agreement, the Agency shall not be under any obligation or continuing obligation to re-offer the development opportunity to any Owner not selected by the Agency or to any other Owners or Non-Owners. The Agency advises and acknowledges that Development Proposals commonly are revised during the process of negotiating and implementing an Agreement, as further analysis is performed of the legal, economic, design, and other aspects of the proposed project. Such revisions do not re-open the Owner participation process under these Owner Participation Rules and do not entitle any other Owner or Non-Owner to receive an additional opportunity to participate in the development. 9RSG . 7 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules (309) Additional Regulations Pertaining to Owner Participation and Non-Owner Participation A. An Owner's or Non-Owner's opportunity to participate under these Owner Participation Rules is not and shall not be construed to constitute a right of first refusal or a right of first negotiation of any proposal or agreement. B. Time is of the essence in the submission of Statements of Interest and Development Proposals by Owners, and the Agency may enter into Agreements for the development and/or redevelopment of property without the need to consider Statements of Interest and Development Proposals which have not been timely submitted in accordance with the time periods set forth above and/or which do not meet the requirements for a complete Development Proposal as set forth herein. C. Nothing herein shall prevent or preclude the Agency from entering into an Exclusive Negotiation Agreement ("ENA") or similar agreement with any Owner and Non-Owner with respect to a development site, whether prior to or during the Owner Participation process. The entering into an ENA or similar agreement by the Agency shall not be, or construed to be, a prejudgment or pre-commitment concerning any Development Proposal or the selection of any Owner or Non-Owner for a development site. (310) Solicitation of Owner Participation Not Required in Development of Owner's Property by an Owner and Certain Other Instances A. If an Owner desires to develop or rehabilitate its own property, no solicitation of Statements of Interest or Development Proposals from other Owners shall be required prior to the Agency entering into an Owner Participation Agreement(or other Agreement) with such Owner for the development or rehabilitation of the Owner's own property. B. No solicitation of Statements of Interest or Development Proposals from Owners shall be required prior to the Agency entering into an agreement for the development of Agency- owned property. C. No solicitation of Statements of Interest or Development Proposals from Owners shall be required prior to the Agency entering into an Agreement for the development or rehabilitation of real property outside of the Project Area. D. No solicitation of Statements of Interest or Development Proposals from Owners or Non- Owners shall be required prior to the Agency entering into a non-exclusive negotiation agreement or similar agreement with an Owner or Non-Owner. The entering into a non- exclusive negotiation agreement or similar agreement by the Agency shall not be, or constructed to be, a prejudgment or pre-commitment concerning any Development Proposal or the selection of any Owner or Non-Owner for a development site. IV. (400) REENTRY PREFERENCES FOR DISPLACED BUSINESSES Persons who are engaged in businesses in the Project Area which have been displaced by Agency Activities and who have not otherwise been relocated pursuant to the Agency's Method of Relocation who desire to exercise their reentry preferences shall follow the procedures which are set forth in this Section IV. (401) Notice to Displaced Businesses The Agency shall notify any Businesses which are to be displaced by Agency Activities ("Displaced Businesses") of their right of reasonable preference to reenter in business within the Project Area. Such written request from the Business to re-enter shall be in writing and, substantially in the form of 9RSG 8 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules the Statement of Interest in Business Reentry in the Project Area which is attached and incorporated -, as Exhibit "B" to these Owner Participation Rules. Businesses so notified shall be given thirty (30) days from the date the notice is given by the Agency to submit a Statement of Interest to the Agency. (402) Agency Extension of Preferences The Agency shall exercise reasonable efforts to secure preferential rights for Displaced Businesses in Owner Participation Agreements or Disposition and Development Agreements which provide for the development of structures in which a Displaced Business might re-enter. Displaced Businesses which desire to pursue such reentry opportunities may negotiate directly with the owner of the property in which the reentry opportunity is located. The ability of a Displaced Business to re-enter will depend, in part, upon the ability of the Displaced Business to participate on the basis proposed by the owner of the property, including such factors as the ability to pay the requisite rent, the suitability of the proposed use of the Displaced Business for the development under consideration, the Displaced Business's readiness to proceed, and other factors. The Displaced Business also must conform to all applicable requirements of the Amended Plan. The preferences established by this Section IV shall not be construed to require the Agency to provide a subsidy or other financial assistance to such Displaced Businesses to enable them to reenter business in the Project Area. V. (500) PROCEDURE FOR AMENDING OWNER PARTICIPATION RULES The Agency may amend these Owner Participation Rules at a regular or special meeting. 9RSG 9 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules EXHIBIT A CITY OF GRAND TERRACE REDEVELOPMENT AGENCY OWNER'S STATEMENT OF INTEREST TO PARTICIPATE I hereby express my interest in participating in development or redevelopment of the following site (the "Site") within the Grand Terrace Community Redevelopment Project Area (the "Project Area") (See attached map) Please print or type information below: 1. Name: Telephone: 2. Fax: Email: 3. Address: 4. 1 am the record fee owner of the following property within the Site (Please provide street address of property): 5. 1 wish to participate in the proposed project on the Site as follows: ❑ I wish to construct a new building or other improvements on my present property. ❑ I wish to acquire property within the Project Area and construct a new building or other improvements on the property I acquire. (identify proposed property below) ❑ I wish to acquire property within the Project Area for expansion of my current business or other use. (Identify proposed property and existing business/use below) ❑ I wish to rehabilitate/remodel my present property. ❑ I wish to acquire property within the Project Area and rehabilitate/remodel an existing building or other improvements on the property I acquire. (Identify proposed property below) ❑ I wish to sell my present property. ❑ Other- Please Describe: Location and description of property proposed to be acquired (If applicable): 6. Background, experience, and information concerning you and your proposal (you may include further information, including a site plan, construction and operating pro formas, business plan and other information relevant to your proposed activity, on additional sheets if you desire to do - so, but such additional information is not required at this time): 9RSG 10 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules a) Generally describe your background and experience, particularly with respect to development of real property: b) Describe the development and redevelopment activities you propose and indicate your experience relevant to your proposal: Other remarks: 7. By my signature below: I acknowledge receipt of a copy of the Owner Participation Rules. The Owner Participation Rules and Reentry Preferences describe in detail when and how I may participate in the Project and the Agency's obligations with respect to my proposal. �- I understand that after I timely submit this Statement of Interest I will be required to submit a detailed "Development Proposal" within the time period specified in and conforming to the requirements of the Owner Participation Rules in order for my Development Proposal to be considered by the City of Grand Terrace Redevelopment Agency. I understand that submission of this Statement of Interest does not in any way obligate me to participate in the Project, or obligate the City of Grand Terrace Redevelopment Agency to approve my proposal. I understand that I have no absolute right to participate in development or redevelopment of the Project Area. This Statement of Interest is presented to the Agency pursuant to the Owner Participation Rules and Reentry Preferences on the day of , 2 Signed: Print Name: Title (if applicable): 9RSG �� GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules EXHIBIT B CITY OF GRAND TERRACE REDEVELOPMENT AGENCY STATEMENT OF INTEREST IN BUSINESS REENTRY IN THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA I hereby express my interest in reentering business within the Grand Terrace Community Redevelopment Project Area (the "Project Area") 1. Name: Telephone: 2. Fax: Email: 3. Address: 4. 1 am the owner of the following Business which may be or was displaced from the following site within the Project Area (the "Site") by notice and action of the City of Grand Terrace Redevelopment Agency (Identify name and address of displaced Business and location of the Site; attach map of the Site): 5. 1 wish to reenter business in the Project checked below as follows: ❑ I wish to be notified by the Agency of opportunities to lease finished rental space within the Project Area. ❑ I wish to be notified by the Agency of opportunities to purchase property within the Project Area. ❑ Other. Please Describe: 6. Background, experience, and information concerning you and your interest in reentering business within the Project Area. a) Generally describe business background and experience: Q RSG 12 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules b) Describe the business activities you propose and indicate your experience relevant to your proposal: c) Other remarks: 7. By my signature below: I acknowledge receipt of a copy of the Owner Participation Rules. My reentry in business in the Project Area, and the Agency's obligations with respect to my reentry, are subject to the u requirements of and set forth in detail in the Owner.Participation Rules. I understand that submission of this Statement of Interest in Business Reentry does not in any way obligate me to reenter business within the Site or the Grand Terrace Community Redevelopment Project Area, or obligate the City of Grand Terrace Redevelopment Agency to obtain a business opportunity for me. I understand that I have no absolute right to reenter business within the Project Area. Signed: Print Name: Title (if applicable): Date: 9RSG 13 GRAND TERRACE REDEVELOPMENT AGENCY Owner Participation Rules EXHIBIT C - PROJECT AREA MAP GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA EXHIBIT C o� I oe �VCEtk-t Av ND _ x _ n- or WII — : REN, _) (_____�_.J — N Legend 9E$E-RTi, QGrand Terrace Redevelopment Project Area ` ®Original Area ,, ---- I N A r ✓ r-'— DIN �,z ( - IAdded Area } i`� .'I PCP�I ,U �� i � - I _ ,�... ' I / =rAN B RE t l fZI Ir- I 'Note: The Grand Terrace Community Redevelopment Project Area boundary comprises the entire City boundary. 0 0.125 0.25 0.5 0.75 1 PSG H H i I IMiles Sources:City G1S Department and Metroscan O PSG 14