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10/22/2013 CrrY -OF ,GRAND TFRRACE-,-,, .AGENDA & STAFF'REPORTS FOR THE REGULAR MEETING OF THE.CITY COUNCIL AND THE CITY COUNCIL AS'THE SUCCESSOR AGENCY TO THE. COMMUNITY REDEVELOPMENT AGENCY&THE'GRAND TERRACEMOUSING=AUTHORITY TU�E'SDA. October 22, 2013. . .6:00 P.K `Regular Meeting COUNCIL'CHAMBERS GRAND'TERRACE CIVIC CENTER- 22795 BARYON ROAD GRAND.TERRACE, CA 92313'• 0 itA.ND TE.RACE Walt Stanckiewtz; Mayor ; Bernardo Sandoval; Mayor-Pro Tem ' Y Darcy McNaboe;,Gouncilmemb.er -Jackie. Mitchell; Counciilmember _ Sylvia Robles-, Council.member. ,Betsy. Adams,,City Manager , Richard,L. Adams, City Attorney Cynthia Forturie;'Finance Manager ;. Richard Shields, Community.Development Director _ -Tracey Martinez,-City Clerk' The Grand Terrace City council meets on the Second and:Fourth Tuesday 61 eachsmonth at.6:00 p.m. CITY OF GRAND TERRACE -CITY COUNCIL. AGENDA• OQTOBER 22, 2013 Council Chambers Regular Meeting: 6:00:PM Grand Terrace Civic Center- 22795*Barton Road' The City of Grand Terrace complies with .the -Americans with Disabilities Act of 1990. Af you require. special.assistance to participate in this meeting, please-call the City Clerk's office at (809) e24-6621 'at least 48 hours prior to the meeting:, , If you:desire to address the City Council during the meeting, please complete a request to speak form available at the entrance and present it to'tKb City Clerk.. Speakers will;be called upon"by the Mayor at the aporopriate.time. ; Any_documents provided to.a majority of the CityCouncil regarding.any item on this agenda-will be made available for public inspection in the City Clerk's office at city hall located at 22795 Barton Road during normal business hours. In addition, such documents- will be posted :on the City's ;websi ter at www.cityotgrandterrace.org CALL TO ORDER Roll'Ca'll Abseny Late ,Ahriyed'. Mayor Walt Stanek ewitz Mayor Pro Tom Bemardo Sandoval: 0 El Counc&Uembdt Darcy'McNaboe -Council.,Mdmbet Jackie Mitchell 0 QIm 'Council-.Member:Sylvia Robles. 77 Convene City Cdun6il::and1 City Council as 'the Successor.Agency to the Community Redevelopment Agency Invocation Pledge of Allegiance 1. -ITEMS TO DELETE 2. SPECIAL-PRESENTATIONS . A.' Presentation ofPOW/MIA.Flag-Veterans Committee 3.. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial'. They will be acted:upon,by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request,removal of an item from.the Consent Calendar for discussion. i Coy of Grand Terrace ! Paget 'Updated 414/2013 11:29 AM I _ Agenda Grand Terrace City Council October 22, 2613 A. Waive Full Reading of Full Ordinances on Agenda B. Measure I Capital Needs Analysis for Fiscal Year 2014-2015 through 2018-2019 C. Request by Sandals Church for a Waiver of the City Special Event and Facility Use Fees for the Holiday Concert in the Park D. Request by the Foundation of Grand Terrace for a Waiver of City Special Event and Facility Use Fees Related to the Annual Halloween Festival E. Request by the Foundation of Grand Terrace Dog Park Committee for a Waiver of Special Event Filing Fees F. Approval of Check Register No. 10-22-2013 4. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. 5. COUNCIL REPORTS 6. PUBLIC HEARINGS A. 2013 California Building Code Adoption 7. UNFINISHED BUSINESS 8. NEW BUSINESS A. Law Enforcement Update for First Quarter of Fiscal Year 2013-2014 B. Presentation: Legal Overview on Outsourcing C. Long-Range Property Management Plan 9. CLOSED SESSION ADJOURN The meeting will be adjourned in memory of Brandon J. Negrete. The Next Regular City Council Meeting will be held on Tuesday, November 12,2013 at 6:00 PM. Agenda item requests must be submitted in writing to the City Clerk's office no later than 14 calendar days preceding the meeting. City of Grand Terrace Page 2 Updated 41412013 11:29 AM AGEN DA REPORT MEETING,DATE: October 22,2.0.13 Council Item TITLE: Measure.I Capital:Needs Analysiss for Fiscal Year 2014=20'15 through"201.8=201.9' PRESENTED BY: Richard Shields,Conimunity Development.Director RECOMMENDATION: Approve a;Five Year:Measure'f Ca.pital`Project:Needs Analysis for Fiscal"Year 2014-201:5 though 2018-20119 and Adopt Resoluti'on.No..,2013,_ BACKGROUND: San -Bernardino County voters approved passage of'Measure f, in November of 2004 authorizing "San Bernardino Associated G;oVernmentsi (SANBAG), acting -as -he San Bernardino County T�anspbrtation Authority,, to impose,a one,half of one:percent retail transaction .and .use tax.applicable in the "incorporated and unincorporated tefritory.of th-e County of:San Bembrdi'n.o. The .Measure 9 Strategic Plan requires !ocal:jurisdictions to:annually adopt a Fi e.Year ti Capital':Project(N,eeds Analysis (.CPNA);which documents project or programs needs by fiscal year and includes ;the -anticipated +funding sources, funding."amounts and project phasing where" appropriate. The CPNA's. '=also .demonstrate +the. aWfllability of development mitigation fair share funds for<=projects :included ,m the Neetls;Analysis. CPNA's.fo'r'Valley jurisdictions ncludrojecfs for the Valley Freeway.Interchange.and Major 'Street Progtams.. SANBAG-staff will;use these,submittal's along with similar information from SANBAG departments,.,,in a lcasi.46W analysis, Th.e. Development:�M,itigation Annu l,'Re.port is orie of the ongoing .requirements of:the SANBA"G Mitigation Program aril .Congestion Management Program. The. report requires each jurisdiction. to: _provide information on .development activity and "the expenditure of development mitigation funds on projects contain.e.d'in the Nexus Study oer'the .past fiscal:yeac."The report covers.development activity and expenditures fqr fiscal year,2,012- 201"3. DISCUSSION:- Measure I ":revenue can .only 'be used' for: transportation' improvement ands �traffc management programs authorized inahe:Expenditure Plans set by O din"ance Nq 04=01 -and Ordinance No:" 89-1 of the authority: The 'Strategic Plan ;and Expenditure :Plan r:.equir`e":each local'juii'sdiction applying for revenue fro_rrm the Valley Major Street and Freeway finterchange Programs,`to annually adopt and update the Five=Year Capita"I Poject'Needs Analysis. The CPNA,mast'be adopted by action of'the City. Council and forwaeded'to::SANBAG by-October 31, ,W13Z PacketPOA The CPNA as recommended identifies one_proje,ct in the City where these funds would improve traffic management, subject to projected availability of funds. This project is; "Widen Michigan Street from Commerce Way to Main Street". The Master Agreement for this project was approved by the City Council in May 2010. FISCAL IMPACT: Under this five year plan the City is committed to obligate $432,700 from its development impact fees (arterial improvements) account over the five year period including fiscal year 2014-2015 through fiscal year 2018-2019-in order to advance the design and construction of the Michigan Street. The City will receive $646,810 in Measure I subventions for this project. The City's commitment to obligate development impact fees is a requirement to receive the Measure I funds. The Measure I Five Year Plan is updated annually. If development impact revenue are not generated at the anti cipated,pace, the City's plan can be scaled back accordingly. Should additional funding become available or City priorities change in the future, the City's Measure]Five Year Plan cap be revised with subsequent updates. ATTACHMENTS: • Resolution with atmts APPROVALS: ' Richard Shields Completed 10/07/2013 10:21 AM Finance Completed 10/10/201.3 12:08 PM City Attorney Completed 10/10/2013 12:21 PM Community Development Completed 10/10/2013 12:37 PM City Manager Completed 10/15/2013 9:23 AM City Council Pending Packet:fPg,-4. :L RESOLUTION NO:2013- A: :RESOLUTION OF THE CITI( CO.tJNCIL; :OF THE C1TY OF GRAND TERRACE; :STATE OF CAUFORRIIA, ADOP"1h1QG THE:. .. FIVE YE/4R: CAPIT/4 PROJECT ;NEEDS ANALYSIS FOR FISCAL YEAR�20�1:446 TtfROUGH 20'18=19 - WHEI?F..AS,:San: Bernard no,County writers approved. .passage'of,Meas.-ure I' .in y [Vovernbeit 20.0.E authorizing San:Bernardino Assgci a Governments, acting as a the S.an.gemardino County Transportation Authority, to impose;a qn'e=hai:of.one a percent retail transactions and use tax :applicable in tho, incorporated and: N. . unincorporated.territory of the Coonty of San,EW;§rdino;:and WHEREAS, revenue _from: the tax can -only 'be used for #ransportiti4n imprpvement and traffic `management programa authorized irf the Ependii�ire Piar+s set forth iq Ordinance'W."04=1:'pf�the.Authority-, and a WHEREA,Sj the <Strateg a Plan requires- each local ;jurisdiction appiy ng for. revenue ''from the Valley Major Street and Freeitiay. Ir ferchanga--p ograr, — annuallyadopt and:update a'Five=Year Capital Project:Needs Analysis;., E CITY 4 CRAND TERRi4CE DOES. .RESOL1rE,' NOltlf; THEREFORE, TH... )= DETERt�dINE, FRND AI D O pERAS FOLL,,` i SECTION '. , that 'the..:Cify Council :of the. City of _Grand Terrace, State ofi L , Ci lifomia, -herby adopts the Measure i, 'F" Year Capital f'ro�ect Needs Analysis for Fl( 2014-15 thraugh,'2M-19, a copy°'.of Which is .attached to this resol-400 PASSED, APPROVED AND ADOPTED:by the City Gounci! of the:City of Gland c 1`errace at a regular meeting held on"the 22nd day of Octgber,.2U13. N , d Mayor.of the City of.Grand,terrace Resolution Idp_2013 page i -ATTEST: Ckty Clerk of`the_City of Grand Terrace c t, Tracey"R...Martinez, ,City Clerk of:the City of Grand Terrace;-so.fiareby certify -'that the forgoing Resolution was:introduced and adapted at a regular meeting .of z the"City of Grand Terrace held on the.22; .day of ctober 2093 by the following Vote.: : - a AYES .a cc ABSENT: ABTAIN: 4s Tracey Martinez, Citytlerk - w APPROVED AS TO FORM r ' c w City.Attamey H Attachment: Five Year Measure I, Cap-itaiji)jo oyement Plan d �;" � , (slsRleubr spaaN;aafoad le}lde�.I a�nseaw;�eaA:anl�)�,s;ua;e,y;lnn uoi;niosab :;uauayoe�d • �m� - : - <CapltahProject,Needs_At,aly_sis ' z GitVA Grand~Te race:" Va11ey�Arteria'i,S:ub�P�ogram (201: dollars;.to$1'400s`=SANBAGwiil'.apply,escalation,factors,byysot;1 Public Shaes: 60.1% - _ -- rer;39 F FX16/17` :;FY 17/1i8' =`F�(:18149.,.... �•v rSh$ :9F/a Pro ect>.anfor:'rriation. : Phase Fund fig, PRIOR*., - FY'9.411;5 Y'1S/1s _ r widen Mlchigan.Ave:;frorn PA&. P: ._ ,o..mme ce."=1Nay:to;Main St:: TotaL�Gost: :$48:70 - to- lanes Fund�Type:. Other::. - Totafj:Pro eot•:Cost: RAW, Total:Cost PUP', $'L;4230Z _ Fund`7ype:. :MLWASS. D.EV`:EEE.• ''8:352'' - Total:Measure l.:Requestc, -:Sele,pVU d'. - - - _ $856 91 Select FUnd (Summation of:MCMAJ.ST) Other:. Row: . .... ; .. . Total cost: $449- - r Fundaype; M{WW'ST coin_ments: Seiect:Fuhd_= `'. - - . . $T. . Other: CON - - -- • TotaGCost:= Fund Type: IVIF MAJ.ST;- 5562 1236Q:; 126,:403. 1`29;3Q 13230 1.3521 DEVFE =Sel:eet,Fun& -SelectFund=- 7wilorincludes:66y FY'20:.0:2014:allacatio11,' 4 -201S.SANQAO CPN"rand T:errace(3) Prof 1' + ,sAjRud spaaN-WQrOJd le;lde31 ainseaNr A aAid) s;upe 411m uOi;nIOsaa :Puau1438:9 r im}� `ipjt ANNUAL:REPORT FOR THEUNBAG DEVELOPMENT MITIGATION PROGRAM ((0. Fiscal Year.2012-2013 Name of Local Jurisdiction: City of Grand Terrace Person Completing the Report: Ed Studor Phone No.: 951-6404060 Email Address: ediulielCa verizon.net Date,Report Completed: 9/26/2013 Quantityof_Ueveio.mentpermitted•andFeesReceived - .- - - —.Fee 4411ars bevel.T Quanti F.ee-Par Unit." Received. Stride F..arriil"`DUs 0 "$ • Multi=Tamil DUs.. - - _. _- - _ _ __ __ Office 1000's :ft'. .- -- 0 $ - = -No Development Activity.Recorded.for FY 2012-2013 Retaili 1000s .'ft.`". _ ' Hi h:Cube lNtisei'1000 s;ft: _- 0 $ " OtherindustrialNVh'se"1000 s :ft.,. _ _ ,- - . Other_-lista e'bad,`uan' -- $ Other. fsft e�and. uantit ' Other (list a "andquantity) - Total Fee Dollars•Received _ $ _ Dollars fronVO.the-Develo meet-Related.Source-s $ - Total'D.eVelo ment4Cbntr bbutiatfs�Received.- $^ Percenta g e of Dollars Assi ned'to Re ional-lm rvmnts po�a Regional Projects on.Which Fee bollars Have Been Expended; Fiscal Year-20;12 2013' _ enditures :' "' Cumulative:E enditures far.Pro ect: . Diption of Project: oca(Ltion and nature of project,- Fund Sourcel Engineering) - Engmeenng/ escr of a enditure;:and'. [o ectlimits... T Fee e Environmental.Right-of-Way . Construction Envlronmental Ri ht of°Wa :_Construction - -- - Pro ect'1 -• ,- .. :. - - -• Widen Miahi an from Commerce.Wa b Main StreeV_,2 to 4 lanes - -.. Federal, :State:_ _. 'Other.Lodal - _ - - - 000" 2400 :$244, P ec 2r Fee nsroila M Re :_Mess I__.wStTffiSi nal:_ Jointi ro'ectwith Riverside:Coun .,. l. Federal. - State:•� ... ..._ _ Other Local.:.. ; Pro'ect:3 ,: .. Fee Re :Meas..l:,.: Federal. - State Other Local.' Total. .. ... _ .. Il' AGENDA REPORT MEETING DATE:- October 22, 201.3 ,Council Item TITLE: Request.by Sandals Church.:for a Waiver of the City Special Event:and. Facility Use..Fees for the Holiday Concert-in the Park PRESENTED BY: Sandra Molina, De ut velo_Y CommunitYDe nept Director RECOMMENDATION: Waive Special_Event anal Facility-.Use-fees-in the amount of Three Hundred.and Twenty Dollars'($.320.00)for Holiday Conceef in.the Pack. BACKGROUND: Sandals Church, represented by. Jon'Brown is proposing Ao hold a Holiday Concert in the Park<event at bliins Park,on Friday, December 13, 201.3: This is a fr"st time-event and: s.opren to the community..The.concert will::b:egin at 7:3 ' p.m,. The live concert will:be,conducted by: heL Church brand arid�choir. Other event activities include, decorating booths for 'kids, donation booths W.Ii <;procee;ds. .going fob-an y organizations; and coffee and :hot chocolate-Will be handed .out from the snack stand. San'da t is also considering having:a,mobile;food'vendor at the event. Sandals Church:is-requesting.that the City .Council waive the fil.ing,,and facility use fees of$32000 (See attachment) No.off.=hour-staff lime will be needed`as Sandals Church and City staff are coordinating logistics,for the event to ensure that no off:hour staff time will be n.ec'essary. D.ISCUSSI:ON The Holiday ConcerHn Q*Park will com.p'&mentthe summer and fall.community events already occurring ithe City, such as., Community. Day, Movie in the Park, and -the Halloween Fegiival. Many cities conduct Holiday events, such.as a.Tree°Li;gbLing'1=esti-Wls,,Vinterfests,.etc. The City of Grand Terrace does not'have the staff and fnancial resources for such an event, but the Eity is.fortunate to have community orgariizat'ionswlling to:fll this void. Although,.City:resodeces :are-;limited., the City,Council:does have f h.e ability to support this corrtmunity wic#e event by providing`in,kmd services through the warvi19111 of City fees. Therefore., staff recommends: that the City Council waive the City'sng and facility use fees in 4 e amount-of$32q.00 foc.Horf y m the Park. FISCAL IMPACT: Paaket'Pg:9`` The City's General Fund would not receive $320.00 in filing and facility use fees. ATTACHMENTS: • 1. Grand Terrace Waiver Request 10-14-13 APPROVALS: Sandra Molina Completed 10/10/2013 3:05 PM Richard Shields Completed 10/15/2013 7:03 AM Finance Completed 10/15/2013 1:06 PM City Attorney Completed 10/15/2013 2:49 PM Sandra Molina Completed 10/15/2013 2:53 PM City Manager Completed 10/15/2013 2:57 PM City Council Pending :Packet�P.g 1:0�� C a' ionat6anbrown 14252 Rolling Stream PI EadNale;CA 92880 Home:951-893-1593- Cell:714-713-3870 Jon B @SandalsChurch.com- 0CTOBER 14, 2013 m SANDRA MOLINA DEPUTY DIRECTOR OF COMMUNITY DEVELOPMENT d CITY OF GRAND.TERRACE ti 22795 BARTON ROAD GRAND TERRACE, CA 9z313 a d r C DEAR SANDRA MOLINA, d C SANDALS CHURCH WILL BE HOSTING A HOLIDAY CONCERT DURING CHRISTMASTIME AT RICHAR-D 0 ROLLINS PARK ON:FRIDAY, DECEIVIBER.13, 2013. THIS WILL BE A FESTIVE T_ IME WHERE SANDALS WOULD LIKE TO PROVIDE'SOME FU.N, LAUGHTER AND JOY FOR CHILDREN AND ADULTS'0F ALL AGES. '0 WE APPRECIATE THE CITY OF GRAND TERRACE.ALLOWING U.S TO UTILIZE THE PARK FOR THIS JOYOUS = EVENT. :'C") T!! Q r AS WE HAVE DISCUSSED., WE WILL BE DOING SOME ORNAM ENT AND COOKIE DECORATING FOR THE C CHILDREN-AS WELL AS HOSTING A SHORT PLAY AND CONCERT FOR EVERYONE TO ENJOY. AS.Y.OU N KNOW, THE COSTS TO PUT ON:A'PRODUCTION LIKE THIS CAN BE VERY HIGH. WE WOULD LIK-E TO ASK THAT THE CITY OF GRAND TERRACE WAIVE THE ESTIMATED:FEES OF $385.00 FOR THE UTILIZATION OF d THE PARK AND SERVICES. d THANK YOU.AGAIN FOR ALL OF YOU.R.HELP. THE CITY OF GRAND TERRACE HAS BEEN A TREMENDOUS BLESSING TO SANDALS CHURCH AND WE ARE THAN KFULTO BE WORKING SIDE-BY.SIDE WITH THE CITY v TO BRING HOPE AND JOY TO THE COMMUNITY. t - d H YOURS SINCERELY, C E T J = d E jO BROWN cs to COMM UNITY OUTREACH Q SANDALS CHURCH CC: DAN ZIMBARDI, EXECUTIVE PASTOR 1 - �; P . AGENDA: R_E P-O RT MEETING DATE: October 22,�2013 Council.item TITLE: -Request iby the Foundation of,Grand Terrace for a Waiver of City Special ;Event and: Facility Use Fees Related to the Annual,H loween festival PRESENTED BY: Sandra Molina, Deputy Community Development Director RECOMMENDATION: Waive Special Event and Facility Use fees)h the amount of One.Hun.d_red and:Forty=Five Dollars,($145.00). .BACKGROUND: As they have for th;e. last few years, the Foundation of Grand Terrace will be,putting on th:e. :annual Halloween: Festival. The event will be from 2:Q0 p.m: to 10.00. 0 p.m. at Richard Rollins Park.- The';Foundation has :submitted the-Special Event and:Vacility'Use-.Applications. The _ associated filing and facility use fees,total $14$:00 The Foundation�s requesting that the City Council waive these fees. Calculaton,of the fees does riot include any City __- staff tirn6e.as-.set up activities:will:be during G:ity Hall.operating.,hours. - t DISCUSSI.OM The Foundation of Grand Terrace.-was founded. .to. :develop resources -that would strengthen the community and' has formed several; comrrmittees :to better address specific programsra"nd projects Th:e.committee members are volunteers who offer their time and expertise'to accomplish.certain c6rrimunity pra Bets. The;Halloween. Festival-:is. an ongoing community event b"ecause of the commitrrient.of the Foundation. Therefore, it is .:recomrYentled that the City ":Council suppori ahe Foundation's.effortq, and waive the fling and:facility use_fees'in the:amount ofi$148.;00. FISCAL-IMPACT-: A-fscal impact of$148:.00 tor the general fund°would"be realized. APPROVALS:- w " Sandr-..a=Molina -Completed 1.0/1012.013�9:05 AM Richard Shields Completed 1:0/10%20:13 1236 PM Finance Completed: 1011-51201.31 .05 PM City Attorney Completed 10/15/2013 2:51 'PM ��PacketrPgd12_ , City Manager Completed 10/16/2013 2:54 PM City Council Pending r 'Facket'`P:g:1,3 3:tv -' AGENDA REPORT '- ' MEETING.'DATE: October 22; 201.3 Council Item TITLE: Request by the Foundation of. Grand Terrace Dog Park Committee:for a Waiver of-Special'Event l=iling f ees PRESENTED BY: Sandra Molina, Deputy Community Development Director RECOMMENDATION: 1. Waive Special EventFiing Pees in the_Amount'of Fifty Dollars ($50)for the.Dog Park Committee Fund-Raiser; and 2. Authorize.the City Manager to Waive-the 2014.Special Event Filing fees for Two_Dog:.Park Pundrai'ser=Events,.Not to Exceed°One:Huritl ed Dollars ($10o 00).. BACKGROUND:- The Foundation of Grand- Terrace Dog Park Cointhitte_e .is. a--:5.01,(c;);(3.) .non=profit organization that lhos.,held various activities i raise money to fund equipment,foi'the Cty's Dog Park on Vista Grande:YNay� including an,ann.ual rummage sale fur`d,raiser.. This yeas- 2th Committee,"_he_.Id a rurnm'age .sale on .June 1:5th, which -was :quite } successful,, and decided to hold a secon1.d rummage sale The second fund raiser will p.qbe held on Oclober 12, 201.3, again at .the B1.arton 4laaa Commecciai-Center,where Walgreens.:is located. With; their application submittal, the. Committee. a as...glso asked, for ��a..Walver: of the $'50�0 fling_fee. A check covering th.e fiing fee has bEen submitted and is being :heltl pending the.outcome'of tfe.-eguest. Attac{iment 1 includes the fee v►iaiver ceq,uest. 1n atldition, Mr'. Aul_d`:has 'indicated' thot the Committee anticipates holding up ,O twe rummage sale fund raisers a year. DISCUSSION- The-=Dog°Park Committee bas been wising funds througt fund raising actin ities to pay for Dog Park.egwprrment such as agility courses and benches. Given the City's limited resources; this voaunteer effort's greatly appreciated`. Therefore., staff red ommend'stlat the City Council waive-the City',s special .event.+fling fee in:the amount of Fifty-._Dollars -($50 00;), - .Also; since Ahe Committee anticipates holding :two' fund .raisers nett year;. and- m the interest of e'ffciency., Staff Is, afso recomrnendingahat_the Cquncil:auth fte the City-.Manager to waive the fling fees for Lip fo twofundl rai:si"ng events--in 2014. FISCAL IMPAQT The City's General Fund would not receive up to $150.00 in filing fees for three special event applications. ATTACHMENTS: • 1. Fee Waiver Request APPROVALS: Sandra Molina Completed 10/10/2013 3:04 PM Richard Shields Completed 10/15/2013 7:00 AM Finance Completed 10/15/2013 1:07 PM City Attorney Completed 10/15/2013 2:54 PM City Manager Completed 10/15/2013 2:55 PM City Council Pending r �Pac'-etPg:'1'5 'Sandra:Mo-tna 13':.:.• e-,Qpneni `d.ifGa,[terrace '2279S;naikc�nR,aad - - _. 'rant!Terrace,CAR9231a D 040;0i'm flee Furidr iS r P(ease;atlaiiv tt�s'-to`"behe.Lettro fntent:faf'Fie=?b' "P 'tr .a fi ndta�ser/ruminrtagesale an Satur laji ctoEier 12,20 at>22456. arkaii'Raad - nclpsEtl ire scheirnat c;of ihe.s de,.;in Qrmat n'fl.'i'e ,; t d.o rier's'" .rM ion;tette GQOAM 8 OOAM We:iultf lia=a en't4�tFae public 8AM toPi�F a ar r roes p VV ot`€e"i3lpa astici ant§'i� tft n `• •� - -`�y"'`" .. -•. m p. . :P: ::..Q. ::p vate,artd�ammerciat;:ati-.$�O�OO:�et3 aye' tu,�;� rem�u cf.�Tp%o aies. be r �tue-e:_s_Ax.,$bs r.=.: :no ,� oriLkl itcQ.e.n-:r`saf 6. F= ar,et_.i r�iaets y<i✓'o'o nu�'onw"fd5.:'ai�,..t��t•:a!i',�.-n-:.r e:.;�-o.>Gf-#-t".e a";en.E sd T-Eenar'�src=l,:c'sYe"e``-dw"�.:g�.`S^�:.._.,.8?n':"'�:�i huii2U XCr"s�")�Cc?-�f_�i'.r_a:>�.S.:.�>;.i1 �tdrn0 `Th'ank yoi%for::yai ttojritio .aiii I;Cpt�sdera#lon:;ofr�ur;cequgst: a Resiilty; tm �Mic OOI.Aul t -" d :Cfia�rma�iDog�Park:�ornmitt-'e. `fl e:Fo R atioii:ofGrandTerrace: - r . C E s Q N.. et<P 1fi.` - ° - - AGE N DA R E P 0.R T MEETING DATE: October 22-, 2013 Council Item I TITLE: Approval of Check Register, No. 10-22-201.3 PRESENTED 13Y: Cynthia Fortune; Finance Manager RECOMMENDATION: Approve Attached Check Register_fpt:Octob:er 22, 2013-, as submitted, which includes_the Check Register-Account Index and Voucher Listings foi scal Year2013-14. BACKGROUND: The -Check Register.for October 22,'20.1.3.is presented=;in accordance with Government- Code §37202-and is here6.y. submitted for the City.Councii's ap,p'Oval'. The attached index to the Check Register pis a guideline: account list only :and is not intended to •repl'aee the comprehensive chart of :accounts used';by the City and;-CRA S.uceessor Agency. 'Expenditure account number for nafs ,are XX- XXX [Fund- :Department.Accountr ExpendTit`ures.., be made from trus't%agency accounts (Fund. 23=XXX-)or'temporery clearing accounts which do not hay.e a bud`ge`tary impact. A total of-$1:30,15-7.06 'in accounts payable checks was issued ;durin:g the..pOriod for services, 'reimbUrse:nients, supp)ies. and contracts and..are d`eta•iled"in: the attached: check:register•. .New vendors: :Ch.eck. ,..-. ... . , No. Payee Description Amount NO,NEV11'U-e--.0ORS'"IF" THE P.ERIO.D =rnents,lar er:fhan.$10,000:.. `Check' . No. Payee Description Amount 69741 Willdan_FinanciI - 1!Financial Services.; Sep.2013 $1.9 950 00 69 a ER a nuan3. $ 0.027747 :C It "' `72>697.54 Ca1P:ERS. :Ca1PERS:` ealtl lnsu ance' ;N'ov:-2,1, 12-`6'19 6-1 Legal Services, 2011--:Aug.22013 - 69765 Jones & Ma, er reissu.e of re ions check Y . (.,":.._. , p_ #,69723;that $16,1-1.737 was w.od:ed due,to:ncorrect:amount Rogers„ �,69770 Anderson, Audit Servi ps,.FY2011=1;2 $15;41,0:00 -Ma1:od.:,.et al _Packet*y 4 Payroll costs for the period ending October 11, 2013 Pay Period Ending Period Amount Per. 21 10/11/2013 Biweekly $52,962.85 FISCAL IMPACT: All disbursements are made in accordance with the Adopted Budget for Fiscal Year 2013-14. ATTACHMENTS: • Check Register Account Index • Check Register 10-22-2013 APPROVALS: Finance Completed 10/16/2013 4:05 PM Cynthia Fortune Completed 1 0/16/201 3 4:06 PM City-Atto'rney Completed 10/16/2013 5:02 PM City Manager Completed 10/16/2013 5:05 PM City Council Pending �;Packet;Pg:'1;8: City of Grand Terrace Check Register Index FD No. Fund Name Dept No. Department Name/Cost Center Acct No. General Account Numbers 09 CHILDCARE FUND 110 CITY COUNCIL 110 SALARIESM/AGES 10 GENERAL FUND 120 CITY MANAGER 139 EMPLOYEES'BENEFIT PLAN 11 STREET FUND 125 CITY CLERK 140 RETIREMENT 12 STORM DRAIN FUND 140 FINANCE 142 HEALTHILIFE INSURANCE 13, PARK FUND. 160 CITY ATTORNEY 143 WORKERS'COMPENSATION 14 AB 3229 COPSTUND 172 BUILDING&SAFETY . 1381141 MEDICARE/SUI 15 AIR QUALITY IMPROVEMENT FUND'. 175 PUBLIC WORKS 210 OFFICE EXPENSE 16 GAS TAX FUND 180 COMMUNITY EVENTS 218-219 NOR-CAPITAL FURN/SMALL TOOLS 17 TRAFFIC SAFETY FUND/TDA FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 19 FACILITIES.DEVELOPMENT FUND 187 ENFORCEMENT.PROGRAM 230 ADVERTISING 20 MEASURE I FUND 190 GENERAL GOVERNMENT(NON-DEPT) 235 COMMUNICATIONS 21 WASTEWATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 238-239: UTILITIES 22 -COMMUNITY DEV.BLOCK GRANT 370 COMMUNITY&ECONOMIC DEV 240-242 RENTS&LEASES 26 LSCPG/LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 245-246 MAINT BLDG GRNDS EQUIPMNT 44 BIKE LANE-CAPITAL FUND 410 LAW ENFORCEMENT 250-251 PROFESSIONAL SERVICES 46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES ..255-256- CONTRACTUAL SERVICES. 47 BARTON RD.BRIDGE PROJECT 440 CHILD CARE 260 INSURANCE&:SURETY BONDS 48' CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 265 MEMBERSHIPS&DUES 32 CRA-CAPITAL PROJECTS FUND 510 STREET&SIGNAL LIGHTING 268 TRAINING 33 CRA-DEBT SERVICE FUND 600 WEST SIDE PARK 270 TRAVEL/CONFERENCES/MTGS 34 CRA-LOW&MOD:HOUSING 601 TRACT 14471 PICO&ORIOLE 272 FUEL&VEHICLE MAINTENANCE 602 FORREST CITY PHASE II 570' WASTEWATER TREATMENT 631 STORM DRAIN MAINTENANCE- 33-300 DEBT SERVICE 801 PLANNING COMMISSION 7XX FACILITIES IMPRV(NO CIP) 802 CRIME PREVENTION UNIT 700 COMPUTER-RELATED 804 HISTORICAL&CULTURAL COMM. 701 VEHICLES&EQUIPMENT 805 SENIOR CITIZENS PROGRAM 807 PARKS&REC COMMITTEE 808 EMERGENCY OPERATIONS PROG. i'My C,)k Attachment:Check Register Account Index (Check Register N6.10-22 2013) ; vchlist Voucher List Page: 10/16/2013 .2:36:19PM -CITY.OF GRAND TERRACE v -Bank code: b0fa Voucher ,- ,bate..,_ Vendor ,. Invoice - Description/Account - .. .. Amou - nt 69740 10/8/2013 011274 TRAMUTOLA,LLC 120950 ELECTION CONSULTING SVCS-SEP2013 c 10-190-250-000-600 5,000.00 N Total: 5,000.00 CN, 0 69741 10/8/2013: 011256 WILLDAN FINANCIAL SERVICES 010-22365 FINANCE:SVCS-SEP2013; .- 10-140=250-000-000 19,950.00 Z Total: 19,950.00 69742 10/9/2013 011110 TIME WARNER CABLE 0910-10/09 0910-10/09 CABLE-SERVICE = ' rn 10-805-238-000-000 131.80 Total: 131.80 Y 69743 10/9/2013 011289 GRAND VIEW BAPTIST CHURCH GVBC 26772 WATER STOCK-2 SHARES/CERT.NO.62772 s 10-190-238=000-000- - 798.00 V total: 69744 10/9/2013 006285 RIVERSIDE HIGHLAND WATER*CO RHW-082713 WATER-STOCK`TRANSFER FEE 10-190-238-000-000. 86.26-N Total: 86.26 C' 69745 10/9/2013' 010129 NORTHWEST DISTRIBUTORS NWTREES10092(PUMKINS FOR ANNUAL PUMPKIN.PATCH EVENT 0 H 23-200-14-00 291.60 rn Total: 291.60 Ix Y 69746 10/9/2013 006597 SCHOLASTIC BOOK FAIRS W3183028BF BOOK FAIR FUND RAISER OCT2013 d 23-200-14-00 813.41: V Total: 813.41 C 69747 10/9/2013 010996 CA PUB.EMPLOYEES'RET.SYSTEM 1158 P.ERS HEALTH INSURANCE PAYMENTS-OCT 2013 E. 10-022-61-00 19,960.01 10-190-265-000-000: 67.71 Total: 20,027.72 a 69748 10/15/2013 006730 SO.CA.GAS COMPANY SEPT 2013 SEPT 2013 GAS USAGE ; 10-805-238-000-000 81.79 10-190-238-000-000: 159.50 09-440-238-000-000- 42.85 Page: 1 ' � Ra`cket'Fg 30 _ ilist Voucher-List Page: i .,.16/2013 2:36:19PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69748 10/15/2018 006730 SO.CA.GAS COMPANY (Continued) Total: 284:23 M T 69749 10/15/2013 001213 AT&T .October 2013 OCT2013 PH#09031-10412255 0 N 10-190-235-000-000 _ 1,092.11 N 09-440-235-000-000 727.07 CD10-450-235-000-000 50440 CD 10-805-235-000-000 168.19 Z 10-808-235-060-000 92.22 ` Total: 2,129.99:2 N 69750 10/15/2013 001038 VERIZON WIRELESS-LA 9712062177 CELL PHONE CHARGES- AUG/SEPT.2013 10-175-235-000-000 167:94 Total: 107.94 D am s 69751 10/15/2013 -006720 SO.CA.EDISON COMPANY SEPT 2013 SEPTEMBER 2013:ENERGY USE V 16-510-238-000-000 5,372.43-co 26=600-238-000-000 49.80.:o 26-661-238-000-000 41.50 N 26-602-238-000-000 58.. .N 'Total: 5,521.83 C a. 69752 10/15/2013 011092 METLIFE-GROUP BENEFITS SEPT2013 EE DEP.DENTAL INS SEP2013 10-022-61-00 1,219:70 m Total: 1,219.70 Y 69753 10/15/2013 011092 METLIFE-GROUP BENEFITS OCT2013 EE'DEP.DENTAL INS.OCT2013 _ d 10-022-61-00 1,219,70 V Total: 1,219.70 V 69754 10/22/2013 010996 CA PUB EMPLOYEES'RET.SYSTEM 1221 NQV 02013 PERS HEALTH INSURANCE E 10-022-61-00 12,570.12 n 10-190-265-000-000- 49.49 'Total: 12,619.61-Q 69755 10/2.2_/20.13 010867 CHAMPION FIRE SYSTEMS INC 30063 QTRLY MONITORING OCT-DEC2.013 10-195=246-000-000 144100 'Total: 144.00 Pager - 2 vchlist Voucher List Page: 10/16/2013 2:36:19PM CITY OF GRAND TERRACE Bank code: bofa Voucher - Date Vendor Invoice Description/Account Amount 69756 10/22/2013 001810 CITY NEWSPAPER GROUP 18729 FY2013=14 ADVERTISING PUBLICATION 10-125-230-000-000 73.50.c Total 73.50:N N 69757 10/22/2013 001950 DATA QUICK. B1-2206315 SEP2013 SUBSCRIPTION SVCS N 0 10-370-250-000-000 87.00 10-380=250-000-000 43.50 Z Total: 130.50 69758 10122/2013 001942 DATA TICKET INC. 49147 FY 2013-14 PARKING CITATION PROCESSING S y 10-140-255-000-000 350.00 m Total: 350:00 Y 69759 10/22/2013 .011061 EZ SUNNYDAY LANDSCAPE 4094 MAINTENANCE-SEP2013 d t 10-450-255-000-000 4,345.06; Total: 4,345.00 69760 10%2212013 011196 FIDELITY SECURITY LIFE 6061332 EE PD VISION INS SEP2013 1b-b22-61-00 118.60 .N 6237615 Et PD VISION INS OCT2013 10-022-61-06 124.48: d Total: 243.08 y 69761 10/22/2013 002710 FOX OCCUPATIONAL MEDICAL CT. 68679-44972 EMPLOYEE PHYSICALS W - 09-440-228-060-000 160.00 Se Total.: 160.06 avt s 69762 10/22/2018 010632 HIGH TECH SECURITY SYSTEMS 106095 SECURITY MONITORING FOR CITY HALL&PARK V 1b-195-247-000-000 8000 aci Total.: 80.00 E t 69768 10/22/2013 00321Q HOME DEPOT CREDIT SERVICE 11466 SUPPLIES FOR CITY HALL,PARKS&CHILD CA 10-1,95-245-000-000 109.18 Q 1 0-450-24 5-000-000 46.08 09.440-2.45-000-000 54.59 Total: 212.85 69764 10/22/2013 003213 HONEYWELL ACS SERVICE 5227173824 HVAC MAINT&REPAIR FOR CITY HALL SYSTEM Page: 3 list' Voucher List Page: 4 ,.,16/2013- 2:M19PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69764 10/22/2013 003213 HONEYWELLACS SERVICE (Continued) 10-195-257-000-000 810.91 c Total: 61 o.91 N 69765 10/22/2013 011216 JONES&MAYER 64737a LEGAUCOUNSEL JUL2013 Nc 10-160-250-000-000 .277.50 r 64738a. LEGAL-COUNSEL GEN-,JUL2013 G Z 10-160-250-000-000, 552.00- 64738a. LEGAL SVCS RETAINER JUL2013 y 21=572,251-OOb-b00 393.00'S 10.160-'250-000-000 4,7.74.00 64740a LEGAL_COUNSEL SUCC AGY JUL2013 .x 32-200-251-000,000 3,659.00 65111a LEGAL COUNSEL GEN-AUG2013 V 10-160-250-000-000 129.37 M 65112a LEGAL SVCS RETAINER AUG2013: 0 21'-572-251-000=000 138.'00 N.10A 60-250-000-000 5,029.00 N 65113a LEGAL COUNSEL SUCC AGY -AUG2013 0 32-200-251-0.00-000- 1.165.80: Total: 16,11737 m 69766 10/22/2013 010773 KELLAR'SWEEPING INC. 8133 STREET SWEEPING SEP2013 Ix 16-900-254-000-000 4,200.00 Y Total: 4,260.00 s 69767 10/22/2013 005688 PROTECTION ONE 2588440 OCT-DE ALARM MONITORING SERVICES V w 10-195-247-000-000 109:20 m 3020955 OCT-DE ALARM MONITORING SERVICES E 10-195-247-000-000- 121.83.;c Total: 231.03 Q 69768 10/22/2013 011245 RAQUEUS CLEANING SERVICE. 000015 CLEANING SERVICE/CUSTODIAL:SERVICES 09-440-244-000-000 660:87 Total: 660.87 69769 10/22/2013 01017-1 SIEMENS INDUSTRY INC 400109434A TRAFFIC SIG MAINT AUG2013 Page: 4 vchlisf Voucher'List Page: 10/16/2013 2:36:19PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date . Vendor Invoice Description/Account Amount 69769 10/22/2013 010171 SIEMENS INDUSTRY INC (Continued) 16-510-255-000-000 1,163.36,o .Total: 1,163.36.t;t N 69770 10/22/2013 010249 ROGERS,ANDERSON,MALODY ET AL 39315 AUDIT SERVICES FY2011-2012 N 0 10-140-250-000-000 15,410.00 Total: 15,410.00 .Z 69771 10/22/2013 006504 S.B.FIRE DEPT./HAZ.MATERIAL GT214CC HOUSEHOLD HAZARDOUS WASTE SERVICE 10-187-268-000-000 4,133.00 N` Total: 4,133.00 IY 69772 10/22/2013 011277 SANTA FE BUILDING.MAINTENANCE 12412 JANITORIAL SERVICES 10-195-245-0.00-000 508.33 s 10-450-245-000-000 450.06:V Total: 958:31 69773 10/22/2013 006681 SMART&FINAL 3184620175061 SCH AGE:PRGM SUPP 601P46obdi0318462 09-440-223-000-000 5.40 Total: 5.40.0 69774 10/22/2013 606720 SO.CA.EDISON COMPANY 8EPT2013 ENERGY USAGE SEP2013 H 10-450-238-000-000 56:14 -m Total: :56:14 IY Y 69775 10/22/2013 -011290 STATE OF CALIFORNIA.DOSH-ERT E1132347SI3 ELEVATOR INSPECTION d 10-195-246-000-000 225.00, V Total: 225.00 w C 69776 10/2212013 011275 SYSCO RIVERSIDE INC 309170451 4 FOOD ITEMS FOR LUNCHES&SNACKS m - E 09-440-220-060-000 408.86 C :309170452 2. FOOD ITEMS FOR LUNCHES&SNACKS 09-440-220-000-000 99.28 Q 3092404346 FOOD ITEMS FOR LUNCHES&SNACKS 09440-220-000-000 366.93 309240435 3- SUPPLIES FOR SNACKS&LUNCHES 09-440-220-600-000 91.39 Page: 5 ' Packet�Pg;24:, , 'kst Vouchertist Page: 6' _11612011 2:36:19PM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69776 .10/22/201.3 011275 SYSCO RIVERSIDE INC (Continued) 310010894.5 FOOD ITEMS FOR LUNCHES&SNACKS c 09-440-220-000-600 144.04.N 910010995 2 FOOD ITEMS FOR LUNCHES&SNACKS w N 09-440-220-000-000 420.67 ro 3100807050 FOOD ITEMS FOR LUNCHES&SNACKS CS 09-440-220-000-000 94.93 Z 310080706 8 FOOD ITEMS FOR LUNCHES&SNACKS d 09-440-220-000-000' 476.40:H Total: 2,102.50 69777 10/22/2013 011251 TYCO INTEGRATED SECURITY LLC 06931797 ALARM MONITORING SYSTEM FOR CHILD CARE 09-440-247-000-000 375.00. 0 Total: 375.00 V 9778 10/22/2013 007220 UNDERGROUND SERVICE ALERT 920130286 TICKET CHARGES T I6-900-220-000-000 49:50;N Total: 49.50.N 69779 10/22/2013 007920 WILLOAN 002-13770/002-13 PLAN CHECK,INSPECTION&ENGINEERING SER 10-172-250-000-000' 3,035.00 10-175-255-000-000 960,00 00612217 TRAFFIC ENGINEERING SRVCS• d 10-175-255-000-000 3,387.23 Y Total: 7,382.23 avi 69780 10/22/2013 007987 XEROX CORPORATION 070399139 COPIER LEASE SEP2013 V 10-190-70.0-000-000 308:18 10=190-212-000-000 27:52 E Total: 335.70 t 41 Vouchers for bank code': bofa Bank total: 130,157.06 a 41 Vouchers in this report Total vouchers: 136,157:06 Page:- 6 • ..'Packet�Pg;2s TM 6A. e AGENDA REPORT - MEETING.DATE: , October 22; 2013 Council Item TITLE: 2013 California Building Code Adoption PRESENTED BY:' Richard Shields, Community Development Director RECOMMENDATION: 1. In.trod.u.ce:Ordinance No.., -amending-certain chapters of the Grand Terrace--:Municipal,Code and adopting: by reference the 2013 California Code of Regulation published by the Catifomia Building Stanidards Commission which become effective on January 1, 2014. 2.. - Set Ordinance!No., .for a Second Reading:a_ t the City Council.November 12,.201.3 meeting.' . . BACKGROUND: The State's Health and 'Safety Code;;Section ,1'7958, mandates .the-California 'Building Standards Commission adopt and publish the California Codes, Title:24.,:known as the California.Code of Regulations-. See attached.Bulletin 1-3=3. Every three years, th.o,codes are;published-,to incodV orate;all code changes accepted<by: a majority vote of members at the annual:code development meetings. Asa result; the new codes W10 becorne:effective statewide on:January 1, 20.1.4. .Each jurisdi'ction"Ih the State is mandatedfo:adopt the California 'Code of-Regulations and, m9M.. amendments to 'the codes that ;ate reasonably necessary because of local-climatic, geological; or topographib-tconditions. Staff'has not made,-,any changes Ito :the provisibn�6f4he 2013 California Code of Regulations DISCUSSION: The following codes mandated by the State of -California Building: Standards Commission!for local adoption by`January 1,,.201:4, are: • 2013 California Building Code Volumes 1 and 2 • 2018,California Referenced Standards.Code • 2013 California Residential Code . • 2013 California Green:,Building Standards.,Code 2013 Cal ifornia.Mechanical Code. Packet pg.26 • 2013 California Electrical Code • 2013 California Plumbing Code The proposed ordinance will amend ,the existing chapters of the Grand Terrace Municipal Code in Title 15, by adding the 2013 California Code of Regulation. FISCAL IMPACT: The cost for enforcing the updated codes and providing staff with training has been included in the annual .Building Department budget for fiscal year 2013-2014. Staff is scheduled to attend training courses on the changes October 21-24, 2013 in Ontario, California. No other fiscal impacts are anticipated. ATTACHMENTS: • Bulletin 13-3 • CC Ord zone code amendment 11-02 (v2c) APPROVALS: Richard Shields Completed 10/01/2013 8:07 AM Finance Completed 10/10/2013 11:59 AM City Attorney Completed 10/10/2013 12:15 PM Community Development Completed 10/10/20,13 12:38 PM City Manager Completed 10/15/2013 9:25 AM City Council Pending P46-ket;F6;27 T :64sa STATE OFC kLIFOTtNIA::.`_GOVE"MENT OPERAVONS AGENCY GOVERNQTt- DIyI1JND.�s>BRGVIN JR Bi�II:T�INGSTANDAItDS.CUNMIS$ION •."`: 252�IV060qs Park Dri-S Ae f 30. SaLt6menid Cg"f iiriia 95833-2936 (916}253-09W PA3CP101263-0959 BUILDING -SUANDhRM IVFOR AN0T3I13 DATA: July 1, 2013: Tp LOCAL BUILDINO-OFFICIALS INTERESTED:PARTIES; - - c SUBJIECT: 2013-C�lif&nia.Bu lding Standards Gode Q 0 The 2013 editioin_of the California`Building Standards-.Code,Title 24, Cal'mlia Code of V Regulations.(13.Parts),is published:and.availalle,foi.pufchase. This fjulletin;provides ci infomiatign Forice�riing th`e effective.date.ar d application,the availability of-the 2013 California Building-Standards Code, and local.amendment of the bdildigq standards. Effectivebateand Apalic;ation.of:the-2013 C-6de o �- Jahuary 1,2d14 is the statewide effective date este#lislied cc by the,Califoumia Building Standards Com_ mission for the 2U13 California Building Standards:Code. .o As,proviOd for:in Califorriia.'Health and Safety:Code-,Section 1.89,38.- .Ewildin6 M Standards Lain►;,tfie 2013`bwlding stah 6fds.approved'by the cb wtsi' and that :are.effective at the'locai level at the 0me an�anplieation for a building permit_is w submitted, ap0h6t-`W the'pians and spe on performed under that peftnit. m' The 2Q,1.0'California B iilding,`Standards Code retrains in effect:and is applicable to all,plans and specifications,for,and.to th"i construction perfoirmed under that building;permitwhere the application.for a building-perrtmit is submitted#o the local jueisdidon on or before December31,,2013, a 4Vailability of the gO.Californ[a:.Building;Standards.Code The 2013 Code.inay;be purchased-through.the following puplishers: loternationai:Code.Council(Ice) Online store:-Ww'w.shop:iccsafe.o!] Erhaii::order(d_)iecsafe.org..or ecodesCcr�.iccsafe.ora Telephone: I.CC Store (800)786-4452 .;Packet�Py�,28_`�J Building.Stand4ds:ln(om►aVdnBi 16 nl"! Inte_cnationa}Assoeiafiion of plurribing'and Mechanical Offcials (IAPMO) O.nlirie Store: WWw ia'pfnomembership.org. ; Email: pubiicatiorisOapmo.oro Telephone: (90J)472=4208 a National Fire Protection Association(WA)/ BNi Books - 0nline"store:www.bnibooks.com l`elep[ one:.(8$8.)Zfi4=26C5 " - :Enforeeivient.Respo nsi bil itV The California BuildingStandards Code; Title 24,;is'the established minim urn a regulations forth desigii and•constri fiction of:buddings and structures in Galiforrtie. State aaw:mandates that local,go pmment enforce::#hese reguldb.. ;.:or loPei ordinances month qualifed.reasonably necessary antl generally more res#rictive building sfand`ards'ttian;provided-for'��Iri:the'California:Building S#andairds Code.: .� Excep#ions;are.,bdcting standards applicable to haspitals,:state buildings,,public sch6 :and:ccilleges that are subtedt-t6 enforcement+by state agencies For- detailed information regarding•enforcement responslbihtles, refer to Chapter.�I, ' +° Division' :;.eQlrnericirig vaith Section 1.1, of the 201,E=California'Buildig Gotle, •-art 2,V0111rr o 1-of Ti#le"24. T [Reference.Health&Satety Code (HSG)"Sections 1,7950, 17958,7; 1796Q; M ' c Amendment-W16 ral-Ordi, narice m Local ordinances omendihb Wilding:standards approved/adopied'by the :.. _-_ C&nrnission,are.subject`to;requ reri�ents of Califomia.lavii. Otdinarices.geil ally =. must be more restnctive-standards.thin the-buildio standards approved/adopted tie-Commission. Th by t ese amendments must be:fileii, as'appropnate,with either a , rthe'*aE tdng and Communitythe Building StandardCrim}ss}on o • Development; Unlike California Building'Standards'Law,:the State-Housing.Law(Health an Safety-Code,pivisipn I3;'Rart 1 B),pettalning to res opli !' bdpancies does.not specify'tha#'lacal amendments:be-more restrictive. The.Commissiion'has issued a numVgvdf information'bulletlns.rolative to lo: l: government's,amendment wia drdinance:and the required filings!: These bulletins . are available on-the cottimission's websK!i www.bsc.da.qou undbt the Packet'Pg``29, Building8tandards'l-nformA.0n BtAldn I 3-'03 Page 3 of S' "Publications"tab.. The most recently issued.bulletins on the subject are Building Standards Bulletin 10703 and 14v 01. Additionally, examples of sucoesshilly-fi-led local 6-tdihandes are available at the commissi,on j g w4slteiindtr-thb'."Cbd`ds"tab and identified as Local Fifings . [Refer6rice He'-al,th & Safety Code (HSC) Sectiohs--17950, 17958, 17958.5, 17958.7., 18938,,18941.5]. Questions or porn.r0prits regarding t4O subject of this bulletin should be dirtictOd to this office at either(916)263-0918 Or'via e-mail at chscCD-dqs.ca..qo:v. C 0 .0 0 Jim McGowan -ExectitiVe'Director 7E 0 o :Cq C? Cq C B E r ORDINANCE NO. AN -ORDINANCE 'OF THE CITY COUNCIL OF THE CITY 'OF GRAND TERRACE;- CALIFORNIA, .. AMENDING SECTION 1.5.08.010 OF CHAPTER 15.08 ' (BUILDING CODE), SECTION . 15.10.010 OF CHAPTER 15.10 (RESIDENTIAL CODE), SECTION ,15.12.010 -OF CHAPTER'- 15.12 (ELECTRICAL CODE),. SECTION ;15.17.0.10 OF CHi4PTER -15:17- (.GREEN 'BUILDING STANDARDS); AND -SECTION c 15.20.010 OF CHAPTER 15.20 (MECHANICAL CODE) OF TITLE--15 (BUILDINGS AND CONSTRUCTION), OF 'THE CITY OF GRAND RR a TERRACE -MUNICIPAL CODE, ADOPTING THE 2013 CALIFORNIA BUILDING CODE, INCLUDING THE 201:3- CALIFORNIA c REFERRANCED-STANDARD CODE, 2013 CALIFORNIA,RESIDENTIAL tz CODE, 2013 ,CALIFORNIA ELECTRICAL :CODE, 2013 CALIFORNIA PLUMBING CODE, 2013 CALIFORNIA GREEN BUILDING STANDARDS-CODE; 2013 CALIFORNIA MECHANICAL CODE. m• THE CITY COUNCIL OF THE CITY .OF GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1: Section 15:08.010 (Adoption) of Chapter 15.08 (Building N Code) of Title 1.5 '(Buildings and -Construction) is hereby amended to read-as follows:: .(underlining:indicafes amended language) - - v 15.08..1.0- Adoption Except-as provided in this chapter, those certain building codes known and :designed as the .California Code of Regulations, Title 24; Part 2, )_ Volume 'I and 2,-based on the 2012:International Building Code, including E Appendix Chapter.-. "C", "F", "G";: ".I", "J", Part '12, 2013 California t0 Referenced Standards and .the California. Existinq Building Code shall S become the::Building Code of the City of Grand Terrace for regulating the construction, .occupancy, equipment, use, height,. area and maintenance c of 'all buildings and/or structures in- the City. The California -Code-of •a� Regulations.and its appendix chapters will be:on file for public examination o in.the office of the Building Official. SECTION 2; Section 15.1.0.010 (Adoption).of Chapter 15;10 (Residential Code) of. Title 15 -(Buildings and Construction) is hereby amended to -read as follows: (underlining.indicates amended language) ., 15.10.1.0 :Adoption .Except.as provided::in this chapter those certain building codes known and designed as the 2013- California Residential Code, California Code of Regulations, Title 24, Part 2:5, based on the 2012 International Residential - 1 ' Code shall become the 'Residential Building Code of the City-of .Grand Terrace for regulating,the construction, occupancy, equipment, use, height,- area and maintenance of -all residential buildings and/or structures in the City. The:-California Residential Code and its.-chapters will be:-on file for public examination in the office of the Building Official. SECTION 3: Section 15..1:2.-010 (Adoption) of .Chapter 15.12 (Electrical Code) -of Title 45 (Buildings and Construction) is' hereby amended to read as c follows; .(underlining indicates amended language) c -~ a 15.12.10 -Adoption O Except as provided in. this, chapter, the .20.1.3 California Electrical Code, California Code of Regulations, Title 24, Part 3, based on, the 2011 National Electrical. Code as published by the National Fire Protection Association, shall become the Electrical Code of the. City of Grand Terrace, regulating all installations, arrangement, alteration.; repair, use ' and other :operation of .electrical wiring, connections, fixtures..and other ;° electrical appliances on premises within the City. The California Electrical Code'is.on file for public examination in the office of the iBuJilding Official. v SECTION 4: Section 15.16.010 (Adoption) of Chapter- 15.16 (Plumbing Code): of-. Title 15 (Buildings and Construction) is hereby amended to read-,as . follows: (underlinirg indicates amended language) o .15A6.10 -Adoption . _ - E Except as provided in this.-c4apter, the 2013 California Plumbing Code, c California -Code---of- Regulations, Title 24, Part 5,. based on -the 2012 -E Uniform Plumbing.-Code as published .by the International Association :of Plumbing and Mechanical Officials, shall become the Plumbing .Code of c the City.of Grand Terrace,'-regulating construction, installation- alteration, repair, relocation, replacement,-maintenance or use.of plumbing systems c . within the City. The California Plumbing Code will be on file for public examination in the office of the Building Official. p` SECTION 5:. Sect-ion 15.17.010 -.(Adoption) of Chapter 15.08 (Green Building Standards) of Title 15 (Buildings and Construction) is hereby amended to.read as follows. (underlining indicates.amended language) 15.17.10 -.Adoption a Except as provided in this chapter,: the 2013 Green Building Standards Code, California Code of Regulations,:-Title 24, Part 11, as published--by the California Building Standards Commission, shall become the Green Building Standards of the--City .of Grand Terrace,. The provisions .of this 2 code shall apply to the planning, design, operation, construction, use and occupancy of every newly constructed building or structure. The 2013 Green Building Standards Code will be on file for public examination in the office of the Building Official:. SECTION 6: Section 15.20.010 (Adoption) of Chapter 15.08 (Mechanical Code) of Title 15 (Buildings and :Construction) is hereby amended. to read as follows- (underlining indicates amended language) c 15.20.10 -Adoption - a Except as provided 'in this Chapter, the 2013 California Mechanical Code, c California Code of -Regulations, Title 24, Part 4, -based on. the 2012 Uniform Mechanical Code as published by the International.Association of E Plumbing and Mechanical Officials, shall become the Mechanical Code of. � the City of Grand Terrace, regulating and controlling the design, 00 construction, installation, quality of materials, location, operation, and maintenance of heating, ventilating, cooling, refrigeration system, .0incinerators and other miscellaneous heat producing appliances. The ."a California Mechanical Code is on file for public examination in the office of the Building Offical. N SECTION 7: If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any,reason held to be unconstitutional, such decision shall not affect this validity of the: remaining portion.of this Ordinance-or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, 0 _sentence, clause, or phase thereof, irrespective of the-fact that any one or more sections; subsection, subdivisions, paragraphs, sentences, clauses, or phrases E be declared unconstitutional. 10 0 SECTION 8: This Ordinance shall be in full force and effective a minimum 0 of:thirty(30) days after passage. The:effective date of this Ordinance is January c 1, 2014. N - L O SECTION 9: The City Clerk shall certify to the passage of this Ordinance 0 and-cause the same-to be posed pursuant to Government Code Section 36933.- 43 c m - E t m - Q 3 RacketPg.'33 -- APPROVED AND. ADOPTED at a regular meeting of the City Council of the City of: Grand Terrace held on the day of , 2013. Mayor of the City of: Grand Terrace and of the City Council thereof. c Attest: a a� 0 City Clerk of the.City of Grand Terrace and of the City council thereof. � m cv I, Tracey Martinez, 'City Clerk of the'City of Grand Terrace, do hereby certify that 'c the foregoing. Ordinance was introduced and adopted at a regular meeting of the ° City Council of the City of Grand Terrace held on the day of 2013 by the following vote: o N is AYES; N NOES; o ' r :r+ C ABSENT: E V c ABSTAIN: 0) E. �o 0 m 0 Tracey Martinez, City Clerk N1 0 Approved as to form: .s a Q Richard L. Adams.'II, City Attorney 4 Packet Pg.'34;v ,8 A, ti x, T' AGEND A REPORT MEETING DATE: October 22, 201.3 Council Item TITLE: Law: Enforcement Update .for First Quarter of Fiscal Year 2013-201.4 PRESENTED BY: -Betsy Adams, City Manager RECOMMENDATION: -Receive-:information on law.enforcement Priority 1. response time for first,quarter of Fiscal Year 201:3-2014 (July through- .,' BACKGROUND: The adopted budget for Fiscal Year .(FY) 2b1.3-:14 .included:the re.moval'of one. Patrol Deputy position (40 hours per week) from the agreement,'.or law.enforcement-services., This:service:level-.reduction.went into-.effect on July 1,.2013. -This was most"iecent in a series,-.of reductions tq`the'law enforcement"services agreement`:made uy the Gfity,in an on going:effort to deal with its General'Fund budget,+challenges, ;A summary of;these lw4 ei nforcement'sery ce;I:evel reductions-is shown'taelow. Service Level.Reduction E 'ac#ed n Elininate Traffic Deputy FY'2.01.1`-1.2 (July 1;,20.11) Eliminate Sheriffs Service Specialist `,FY 20114? (March 24,_2012) Reduce Detective.(2O heuOweek) :'EY;201.1:-12 (March:;24;, 201=2) Eliminate Patrol-Deputy FY.2Q13-14 (July 1-,20' 3) The .Deputy and :Detective service Ieve'I.:redu'etions:above represent;o 36916:decrease-in Sworn position presence in :Grand Terrace (328`hours%week versus 228 hours/week). " The Sheriff's-Service Specialist is 'a non worn, position: -Below is- a more detailed summary. of.:the sworn position law enf-orcement service I'evel:re:ductions to date along with.the service level reduction already authorized in the PY 201371.4 budget,if:Measure: C-'is not passed by the voters on November 5, 2013 (eliminate second Patrol`Deputy). Sw En orn'Law" for cement Pos'ti`oos- inn:G__rand'Terrace� Po ion " ` `:.F:i'scal Year = ` ; .;Measure C Fails 261641 .20 >1`-12 2011'42 ' '201:3 :4. ,i 44 _ _.. _ -_ 1-13) Decrease .Hrs%1N:k' Dedrease - - - - - Detective._ ;` 40,;; P`atrohDe u 4 40 _ ;E 2. 8248;' :,Traff a De .0 'Total Sworn 328`. 288 268 228;` 30°l0. 188 ' 43% ' Packet'Pg.35 - '$A' —-f While a 30% decrease in sworn law enforcement positions is:very significant, and a potential 43% even rhibre' so, to provide context it =should be- ,noted that the City has reduced its City Hall workforce by 58% to date and will reduce it substantially further if Measure C fails. DISCUSSION: When 4he'elimination of a patrol deputy on July 1, 2013 was included in the FY 2013-14 budget the Council ex ressed a,.desire to .know if the City would. experience a service 9 p . level impact. `With the completion of September there is enough data is available to provide the Council with a preliminary answer to the service level question. Below is a summary of Priority 1 response time information from the Sheriff's Department for Grand Terrace the first quarter of the current and prior fiscal years. . A Priority 1 .incident is when the event is "in progress" or when there is a likelihood that the perpetrator(s) is still in the immediate area. Sheriff's Department Priority 1 Response Time.Compar-ison 1st Quarter 2012'andl•2Q: t 2012" 2013. . Week. ..: Dates #'Calls Minutes 'Date`s {:#,:,Calls . Minutes. -1 j42`i , 276 3:37 July 1-7 j221 1:58 2 July 9-15 215 4:27 July 8-1 222 3:56 3 July 16722' 225 2:42 July 15=21 206 11 50 4` July 23-29' 259 4:23 July 22728 ! 207 2:27 5 July'30=Aug 3 179 7;10 July 29-Augz4 I 206 -15:30 6 Aug 4-12 '361 2:03, Aug`&41 230 5 09 7 Aug 13719 259 1:51 -Aug 12=18 282 2:04 8 Aug 20-26 260 213 Aug)'9 25 251 5.40 9 Aug 27-Sept 2 381 2:52' Aug 26-Sept 1 260 4:43 10 Sept 3-9 239 4:04 . Sept 2-,8 209 3:56 11 Sept 10-16 29.1 4:52` "Sept'9-.15 23.9 3:42 12 Sept 17-23 266 2:31 Sept 16=22- 148 , 5:28 13 S.ept 24-30 298 234` .,Sept r23=29 228 9:41 Average '268 3:2;9' -- 228 5:51 The comparison 'above shows that average Priority 1 response time increased from -3:29 minutes in the first quarter of,FY 2012-13 to 5:51 'minutes in the first quarter-of FY 2013-14: "This is an'increase 2:21 minutes or 68%. Response times will continue to-be Packet�Pg 36 monitored to.so the Council can be updated periodically.- If Measure C is not passed by the voters :then a second Patrol Deputy position will be removed .from the contract-for law enforcement services on December 1, 2013. If this occurs, then the next report to Council on response times should be:a full quarter after this reduced service:level. It is reasonable to assume the elimination of a second Patrol Deputywould further increase the average.response time.for-Priority 1 calls.and non emergency calls. In addition to the Priority 1 response time information provided, below is a table showing total calls.-for service .in 2012 for Grand Terrace and other cities and county areas for which the Sheriff's Department provides law enforcement services. Identified in the table is where Grand Terrace is with one less Patrol Deputy (effective July 1, 2013) and where it would be if a second, Patrol Deputy is removed on December 1, 2013. Cails for Service Per Deputy (Based on San Bernardino County Sheriffs Department 2012,Annual Report) Entity Population Patrol Calls For Calls:Per 'De uties Service Deputy Colorado River Station 10,407 16 9,902 619 Morongo Basin Station 23,1381 19 12,375, 651 -City of Chino Hills 757655 38 361,694 966 Barstow/Trona Station 23,239 21 .21,225 1,011 Big Bear Station 15,964 10 10,251 1,025 Yucaipa-Station 8,891 5 5,245 1,049 City of Rancho Cucamonga 169,498.1 105 . 112,479 .1.,071 -Central Station 39,202 25 29,990 1,200 Twin Peaks Station 33,242 17 .20,466 1,204 Fontana Station 87,701 28 36,422 1,301' City of Needles 4,894 , 7 9,207 1,328 Town of Apple Valley 70,033.: 37 . 50,019 1,352 City of Hesperia 91,033 40 55,348 1,384 Victor Valley Station 63,449 28 39,755 - 1,420 City,of Grand Terrace- 12,167 : 8 11,440 1,430 Town of Yucca Valley, 20;916. 12 18,544 1,545 City of Twentynine Palms 25,713.: 10 . 15,540 1.,554 City.of Victorville 119,059 61 95,643 : 1,568 City of Big Bear Lake 5,088 8 12,944 1,618 Cifyof Loma Linda 23,389 11 17,873 1,625 "':Ci of Grand�Terrace 7`-1-201,3. 12'>1`57r 7r:,- :; '.�1'4w:0=- a �Packef�_Pg;;.37� Calls for Service Per Deputy (Based on San Bernardino County Sheriff's Department 2012 Annual Report) Entity Population Patrol Calls For Calls Per Deputies Service I Deputy City of Highland 53,664 22 35,946 • 1,634 City of Yucaipa 52,100 22 38,685 1,758 City of Adelanto 31,066 16 29,219 1;826 City of Grand Terrace,(12-1-2013) 12',157 '6 11,440 1,907- In addition: to the calls for service data, below _is a summary of residents per deputy including where Grand Terrace is with one less Patrol Deputy (effective July 1, .2013) and where it would be if a second Patrol Deputy is removed on December 1, 2013. Residents Per Deputy (Based on San Bernardino.-County Sheriff's Department 2012 Annual Report) Entity , Population Square Patrol Residents Miles Deputies Per Deputy City of Big-Bear Lake- 5,088 6' 8-- 636 Colorado River Station 10,407 5,053 16 1 650 City of Needles 4,894. 31 7 699 Barstow/Trona Station 23,239 9,219 21 1,107 Morongo Basin Station 23,138 2,720 19 11218 City of"Grand Terrace 121,157 4 8 1,520 Central Station 39,202 '95 25 1,568 Big Bear Station 1$,9.64 258 10 1,606 City of Rancho Cucamonga 169,498 44 105 1,614 Gity=of'Grantl Terrace.(7=1+-20,13:) f 12,157 4 7 Town of Yucca:Valley 20,916 40 12 11743 Yucaipa Station 8,891 225 5 1,778 Town of Apple Valley 70,0.3.3 73 37 1,803 Victor Valley Station 53,449 1,403 28 1,909 City of Adelanto 31,066 54 16 11942 City of Victorville 119,059 74 61 . 1,952 Twin Peaks Station 33,242 135 17 1,955 City of,Chino:Hills 75,655 45 38 1,991 'City,of Grand TerracbJ12-1-20.13) 12,157 4 6 2,026 City of Loma Linda 23,389 8 11 2,126 _�-;Packet�iPg.;38 i8A Residents Per Deputy (Based on San'Bernardino County Sheriffs Department 2012'Anrival Report) Entity Population Squar.'e ''Patrol Residents Miles ..; De;" uties Per Deputy, City oflHesperia 91;033 73 40 2,276 City of Yucaipa 52,1,00 27' .22. 2;368 City of Highland 53,664 19 22 2,439 City of Twentynine Palms 25;713 :55 1.0 2,571 Fontana Station 87;701 139 28 3,j The calls for service per deputy and resident per deputy summaries, along with the Priority 1 response time data, are provided for informational purposes. Council action is not required on the information provided in this staff report. FISCAL IMPACT: There is'no fiscal impact in receiving, the information in this"staff report. The FYI 2013- 14-;bu`dg'et savings:for removing 0.a Patrol .Deputy position from -the agreement for law enforcement services on July'1., 2013 is $2'S7,500. The FY_2'013 14-budget Savings`for }: eliminating a, second Patrol Deputy,positiod`from the agreement for law enforcement servicesba December 1, 2013 is $150,200. 11 APPROVALS: ` Betsy Adams Completed 10/07/2013 10:52 W Finance Completed 10/10/2013 11:58 AM City Attorney Completed 10/10/2018 12:07 PM City Manager Completed 10/15/2013 921 AM City Council Pending LEA g ctiry . AGIEN DA: REPORT MEETING'DATE: October 22;-201.3 -Council Council!tern TITLE: Presentation: Legal:Overview on Outsourcing PRESENTED BY: Betsy Adams, City Manager" RECOMMENDATION: Receive:information-froom the.City Attorney, on state,laws and court decisions which,pertain;to:_the outsourcing of positions. BACKGROUND: The City Attorney has. previously, provided the -Council with Irifoi'mation on state Taws and.court decisions::whi'ch impact the;City's-ability to outsource positions._ DISCUSSION: The Council recently requested that the City Attorney :provide information: at a public meeting .on the state laws and court,decisions re.'lated~to outsourcing public employee positions The PowerP,oint.pr".esentation on this information will'be ava_ilatiie' at ,the Council Meeting on October22, 2013.- FISCAL IMPACT: There is-`no fiscal 'impact ,in-receiving outso.arcing :information, from the .City Attorney. The adopted budgO.for fiscal Year_'2013-14 includes $266.;000 in- {personnel related saying's to be in plemenfetl-.on January ; 2014,if Measure C is"snot approved-by the voters. It would bo achieved through some.combination of outsditing;,wage hoh6fits reductions, work schedule reductions and/or workforce reductions (layoffs subject to the meet-and=conf0t process. APPROVALS: Betsy Adams Completed- 10/15t2 3- 4 35 PM Finance- Completed 1.0/15/2013 5:44 PM City: Attorney Completed: 10/1-6/2013 10:24 AM City-Manager: Completed 1°0/1:6/201 43 12:52 PM City Council Pending Packet:Pg-40 -AG.ENDA REPORT. . . MEETING DATE: October 22; 2,01.3. Successor.Agency Item TITLE: Long-Range Property Management,Plan PRESENTED BY: Betsy Adams, City Manager RECOMMENDATION: 'Adopt a Resolution approving the-SuccessorAgency's'Long- Range Property Managemerit Plan. BACKGROUND: Health and'Safety Code-§34i M z requires a successor agency to.prepare and submit a. Long=Range Property Management Plari(PMP) to the'Caiifornia Departinent-of Finance (DOF)'within. six'(6) months of'teceiving its Finding.of Corn,pletion(FOC) from the DOF. The.purpose-of the PM.P Is -to address the disposition and use of:the properties of-the former redevelopment agency. Grand Terrace's Successor,Agency received 'its ,rOC on May 20:13 so pits P:MP needs to be submitted' to the"D.O.F 'by iNovember_9., :2013. On August 1;3 2013, the :Successor Agency Board approved: a`..consultant. sics x , ............ agreement with 'Kosmont &�Associates, Inc -(Kosmont) to ;prepare the ,fMP. The agreement was.awarded'thfough a competitive re_ uest;for proposaliproeess. DISCUSSION- Thtough the. PMP-,the Successor Agency; is-to specify one,.(1) .of,four,(4),purposes,for each .of its properties, — governrnerital, future developrnenfi; liquidation or enforceable obligation,. The PMP categorizes the 13 Succcessor Ag.e"cy.owhp&° parce'Is'into:fve-(5). peopert'ies as.shown onpage 4 of.19 of the:PMF', and'also"shown lb.elow: Table 1.2:SuccessorAgeney Property Summary Purpose :i - . . Future D- Oblig. 1 b-275-242-11,'. 1 221OQ_Barton:',Rd: ! X 2 22747$anon Rd. -0276-202-54- X 3 Vista'G�ande jkrk�PcOjel d `0276=462 r10 X +! 1. 1; - _ 1107-141=08, 11.67-15.1-68- Mixed=U_se Specific Plan 1:167=151-71' 4, 1167-151-74 X Protect 1167-161-03 11,67-161-0.4 11:67.1!A-73 i - -5, Basepall.Paric>Project 1167=1:51=75-; X :. Packet Pg.0 Property#1 (parcels formerly in escrow with O'Reilly Automotive) and Property#2 (west of City Hall) are recommended for liquidation. If approved by the DOF, the Successor Agency will sell the parcels on`the open market and'the'proceeds will be distributed to the taxing entities. Property#3 (future dog park) and Project#5 (improved baseball field and.pathway from Pico Park) are recommended to be retained for governmental use. The Oversight Board previously took,action to transfer these-parcels to the City as,governmental use properties, but the.DOF ultimately denied the transfer of the dog park by stating that-the dog park had not yet been built. If the LRPMP is approved by the DOF, then Successor Agency will transfer title of the parcels to the City of Grand Terrace once the public use has been established. Property #4 (mixed-use specific plan project in the southwest portion of the City) is recommended for future development). If approved by the DOF, the Successor-Agency will transfer title of the parcels to the City of Grand.Terrace who will then have responsibility for ,,addressing the zoning, wastewater and wetlands issues of the Property +such that it ',can be made ready for commercial develo.'pment. ' Such development would that, on=going,revenue,for:tl a taxing°entities and-`is anticipated to be,_sigr ifcantly higher'than what the taring entities would.rece'ive if the individual parceis-were sold piecemeal. After Successor-Agency.Board approval, the PMP is scheduled, for consideration-by the Oversight Board-on, November 6, 2013 and then will be'.submitted to the DOF. Redevelopment dissolution Jaw-does not-specify when'the DOF must,complete its PMP review -or th'e 'process if the DOF desires 'the Successor Agency"to revisd`its 'PMP submittal. As of October 15, 2013 the DOF�had issued eight (8.) PMP deter-mination letters. FISCAL IMPACT: RODS !S-1-4k the Recognized Obligation Payment Schedule for the period, of July 1, 2013 though. December 31, 2013, includes an enforceable obligation of'$30,000 to develop the PMP. The agreement with Kosmont is for $12,000 'plus .reimbursable expenses billed at cost. The balance of the funds :available from the enforceable obligation, if needed, will be used for ,possible PMP meetings and/or revisions as required by the DOF. ATTACHMENTS: SA+eP,MP Resolution • Long`"Range`Property'Manag,ement Plan • Attachment A 201,072014.RDA Implem,eritation Plan • AttachmenfB_10222013 • Attachment C - C'DFG and USACE-Wetlands Jurisdictional Maps • Attachment D - Storm Drain Easement:Descriptio,.n • Attachment E -2011A Tax Allocation Bonds Tax Certificate 'PaclefdPg�42-.� APPROVALS: Betsy Adams Completed 10/16/2013 9:28 AM Sandra Molina Completed 10/16/2013 10:23 AM Finance Completed 10/16/2013 11:01 AM City Attorney Completed 10/16/2013 11:23 AM City Manager Completed 10/16/2013 12:57 PM City Council Pending ' 1 - - `Packef�Pga4.3�� RESOLUTION 2013 - A RESOLUTION OF THE - SUCCESSOR AGENCY TO THE COMMUNITY-REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE APPROVING THE LONG-RANGE:, PROPERTY MANAGEMENT PLAN. WHEREAS, the -.State Legislature. dissolved redevelopment agencies by enacting Assembly Bill Nos. 1x 26 and 1484,. relating to redevelopment Aissol'ution, ("Dissolution Statutes")which became effective on June 28, 2011 and June 27, 2012, respectively;. WHEREAS, Health:arid Safety Code:§ 34191.5 requires a:successor agency to prepare and submit a Long-Range: Property Management Plan ("PMP")' to the California Department of Finance {"DOF"). within six (6) months of receiving its. Finding of Completion from:the DOF; • c WHEREAS; the Successor Agency to the Community Redevelopment Agency of the City of Grand "Ferrate•:("Successor Agency") received its .Finding of Completion on May a 9, 2013 and therefore needs to submit its PMP to-the DOF by November 9, 2013; and. Al WHEREAS, the Successor Agency on August 13, 2013 :contracted. with , Kosmont & Associates, Inc. ("Kosmont")to prepare the PMP;,attached hereto as Attachment 1;-and WHEREAS, Kosmont presented. the PMP to the. Successor Agency on October 22, 2013. a� NOW THEREFORE,8E IT RESOLVED THAT THE:SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF' GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: • a Section 1.. After duly considering and .reviewing the PMP; the Successor Agency hereby approves the Long-Range Property Management Plan; attached hereto as Attachment 1. , Section 2. -The Successot'Agency hereby directs the Executive Director to submit the PMP to the Oversight Board for the. -Successor Agency for its 'consideration and approval, and to take all.other.actions necessary: and required by the Health and''Safetyy Code and:other relevant law-in-:presenting the PMP to the Oversight-Board. I .: Section..3. The Successor Agency'hereby authorizes the .Executive Director to. take all actions necessary and required to carry out.#his Resolution.. PASSED, APPROVED AND ADOPTED by the Successor Agency for the Community Redevelopment Agency of the City of Grand Terrace at:a regular meeting held. on the 22"d day of October, 2013. Chair of the Successor Agency for the: .. a Community Redevelopment Agency-of a the City of Grand Terrace -c �a c ATTEST: 9 0 a Q Agency Secretary o o I TRACEY R. MARTINEZ, AGENCY SECRETARY of the Successor Agency for the: a Community Redevelopment Agency of the City of Grand.Terrace, do.:hereby certify that a the foregoing. Resolution was introduced. and -adopted at a .regular meeting: of the yl Successor Agency-Board of the Successor Agency. for-th:e Community-Redevelopment .Agency of the City of:Grand Terrace held on the 23t' day.-of April, 2013 by the following E s vote: _ a .AYES: NOES: ABSENT: ABSTAIN:. 'Pacletgs45 • , 8:C�a Tracey.R. Martinez; Agency Secretary APPROVED AS TO FORM -Successor Agency Counsel . c eo - c 0 J • a a o a . c - d • E - t - Q - _ Packet Pg.46. 1 760 Long-Range Property Management Plan City of:Grand Terrace Successor Agency October 16,2013 Page 1of'22 LONG-RANGE PROPERTY MANAGEMENT. PLAN. n 0 SUCCESSOR AGENCY TO THE FORMER COMMUNITY cc REDEVELOPMENT AGENCY OF THE CITY OF GRAND:TERRACE C -0 ?J CL C C at ra Prepared,By: CL IL compan jes 9. KOSIVIONT COMPANIES 4 .865 S. Figueroa.Street, #3500 C4) Los Angeles, CA 9001.7 E Telephone:,(213) 417.3300 www.kosmoni.com OCTOBER 161 .2013 P� -purp?s nted of actual r."results,Projectprojotmvandtaxai*ysbsaro"pm JeC#6nsl cmy A M09difty from 9 expressetl 1n this analysis. 0 ffikndxni 5th,F por t ps b ~- Long-Range Property Management Plan City-of Grand.Terrace Successor Agency October 16,2013 Page 2 of 22 Table of Contents Section Page 1.0 ,Introduction..................................:.....................................................................3 c. IL 2.0 Long-Range Property-Management Plan.:...........................:::.........................::....Z Im Property#1:,221 QO'Block of Barton Rd.........................................................r...............6 _. • Property#2:22747 Barton F2d......................................................................................9 0 ' J Property#3: Vista-.Grande Park Project.......................... .......................... .................91 0 Property#4:Mixed-Use.Specific Plan Project........................... Pro ert #5:Baseball Park-Project..................:: 3 0 Attachmerits.....................................................................................................22 °: c . . d �a d a 0 :L d - Im c a► c •o .J .i+ d • � s Q 'The an�lys"eS,'projectlarts,assurtip�tigrt4,;rates`atPeturh,endaiiy ei(amples,presentee herein'�re:fof"Illustrdtiy� pi(iposas end are.riot,a;guararitee.df3gt�tal.a d/orfiiture;reswlts:PrgJeet;Pro'ituma and taiiwalyses aft projections. "- only Actual resat (nay.dNfer materially fmm those expressed in this analysis. _, T� „O,$IlIO nV 666 South Flgueroa Street$5tli Flcor Lbsgngeies CalRpmla _9ao1r 'Pn 213:41T 3300 fax 213.4]Z_3344 dPaclief Long-Range Property Management Plan City of Grand Terrace Successor Agency October 16,2013 Page 3 of 22 1 .0 ;Introduction 1.1 Background & Purpose Health and Safety Code Section 34191:5; added by AB 1484 (signed into law .on June 27, a 2012),.requires each Successor Agency ("SA"-) to prepare and approve a Long-Range Property M Management Plan ("LRPMP").:that addresses the disposition and use.of the real properties:of the.former redevelopment agency. Properties held by a successor agency cannot be disposed of.until the State Department of Finance.:("DOF") has approved the LRPMP. This document is the LRPMP for the SA to the former Community.Redevelopment Agency ("RDA") of the City-of J Grand Terrace. 0 L a Table 1.1: City Location Map a a Afri e1s Caaaon 's - a a errardin4;Couni`ji, - - j. ks iry,•l1 u`vS." - :Y'.',.!Jam'(^.'r' '`�'f'`=' - - - p J'V'6":- `'�.5.'L- :-•.L'{].('.w'h Faros h.e_atl` - d AM ,^°, - O _ i i .�yY},-f+,•_s'?a{G.`' _ ••y,,a L 4 �► `- lale'- 1; fo GUED0U3 r - . iyi ti L' °'.=•`.t`i .i:::7f� 'I'1 S' dll d.- 'BnUJ11T`j t :/'�cq7 W — "' _ :<r4� •:'u ,i1;1 ..'.� s(( ,,'fir:.:' - ti .��ti• ,•on I b_�� .t_.J LCl'S ,A _ EL �B.erna ; rdrno-�u lest -e aPomo ' _ sw L ICI. Eni1+.t as' c. r'� ral A ` w "<' s .gl Ih(d'HICLL 'ram.rug •- - o .a in-ni r N�oren 1:1_ejr, am - " ' '.Y.+., � ' -w� Jryt��4J�ic. - .;s'� r,. - •-j- 3°' -.r_..}(3 ?��s#' C _ Its lsFl`lS?' t+l�� o�1a - ,•-. _, ._=`� _:�� '�'• - aFhfiou Dn ; range,'' _ a i?ana .QI• H; O gwiseati `:°: ""` s;`_.=r 7 ;;�' :Hcrti l a..�'Frf is :'k sTr4 tY Ana:,,`,:.. .., r' ci' ,: as ibUr�lTrtllU,ti, L'L� ;,%��`� • :.. �•�•a•5;�.�,�,,; �<,.-';��T�", ti;. �=..,, t(, , F'_'._ .- -- ,,-.•-_•, .tJG;� .(JTATvi�Fi,_ RI.i4:,t,�e.,Efsns ,- , _3 :�.�i°• j Hrarit'n,gton nvrn _ ;< -xS,ta, e��:�- �-.,r:�-�., ,•- -�: f ;.- TEN GUL J. The analyses,projedioris;assuii�iti6ns,!ata-s'6f�etum;and an'y...itmples;pieserttetlfieieln a retfor'illustiative piitpcseS and are not.a`guatantee dractual aodlgr.luture results.iProjW:pr4.forma and bx'a0alyses aie projeoNong,. only Actual rasulfs ipay differ materially from those ezpiessed in this analysts. riOSI71on 't365South'FtgueroaStreet`35ihFt00% LosAngefes :Caldomia 90017 ph213417,3300 fex213.4iT.3311` Packet v?o.. Long-Range Property Management Plan City of Grand Terrace Successor-Agency October 16,2013 Page 4 of 22 1.2 Successor Agency Property Summary The SA / former RDA is the owner of record on title for five (5) properties (comprised of 13 parcels) in the City of Grand Terrace. Of these properties,. two (2) are governmental use properties that are proposed to be transferred to the City to continue exclusive and continued governmental use. Of the remaining three (3) properties, two are designated to be liquidated with distribution of sale proceeds to local taxing entities pursuant to AB1484, and one of the properties is designated to be transferred to the City for future development. Table 1.2 below a. summarizes the recommendations for disposition for the LRPMP properties, and Exhibit 1..2-on a the following page includes a map of the SA and Housing Agency properties. Table 1.2: Successor Agency Property Summary ..0 Purpose > Actdress/Description APINIo FutureGovt D- •. Q- 0. 1 22100 Block'of Barton Rd. 0275=242-11 X 0275-242=11 , ------ 2. 22:7:4.7�B;aitgn Rd'. Q276r202=5s4; ' - X; T 3 Vista Grande Park Project 0276-462-10 X t -1 6:7- ,1-08 - - -- __--- Mixed-lJse Sgecfc Man, 1.167=151-71 , 4; 1167=1'S1'=T4: X Project o 116,T 161=04. t 2 1167-151-___2 ai 5 Baseball Park Project 1167-151'73 X _ 1167-151-75 at c 0 .! C d E t G� R Q The anal-'es, roJectlorSs,assurripGons,rates of return,and any examples:prasented herein mre for illustrative. Ys P_ purposes and,are not aaordntee.oractuat andior future results.Prgdot,pro forma and ta)ranalyses are(Srojections only.Actual results may differ materially'from;those expressed in this analysis. �COSmgn 865South,FgueroaStreet,85thFloor Losgngeles Calitomla 90017 .ph21341T.3360 fax213.417.3911 PacketrP �JU mP,uk, _ 9- Long-Range Property Management Plan City-of Grand Terrace Successor Agency October 16,2013 Page 5 of-22- Exhibit 1.2:Map of Successor Agency and Housing Authority Properties Successor Agency and Housing Authority.; Owned ProPer ies' 3 LEGEND AN -Proposed Boundaries - - _ - - -H1 � ,_ ., •, of-Future.Project - - :, Properties -Housing Authority (NfitptirfofPN1P) ;4A r 1B -' ��'.__'Ow a Aaea e+ 1/III 1 � Hs' - � :iri;ozZs=z42�71:'•sa':•-." ;6:a-#�;, ®�� ' e;;`0275=242-10. %'SA_s 0.44.H2 FIl.'1'0275=251=04; 027Cr202 54.-'iSA "0.'33;:.' sA. ; <0:35_ _• _ oee, w►' 1i =i4ios .sA : ::osa:'; 4s.!ii161151=74 SA ;4C i 3167-151•60 'r,SA.' AD''i67-1si;71 4C 4B'[`',; 59;;1167=191=73'k.. _,;'1167=161=03":?$A. 5B :4F. .11674614A 'FSA itV.25 a:1338`:- 4D ; ( '_.W 4167-:W 01 *A`''; •1.30 (46,:1167-151'2Z'.FSA r. ® 56 A 1167451-75: i SA:.1 2:50 �- ,Candancdy°rvG°°i'm1ttQSmFor`C ' ••113" pie.,so 'd1timtp igrefermoeop eta�Intortr�ltion, Gota2rih the Catmnvt�0evebpmentOeadMt6d;,. ' Tho anaysed;pojacUau,�idSumptbns,iated'of ratum;and wirnpldd presented heraWare for Wusnfivd. a0 puiposes and are not.a guaramee of actual ahNoJ.fufuie"iesulp.f'foJeq pro tomw and tax inayaea.are kged na .-� mug'anai�.air,t�u�nler;,wt.ltmrmme,nwe+,�.v.:dm,mrcennl�ln .. Attachment:Long Range Property Management Plan (Approve Long-Range PMP) Long-Range Property Management Plan City of G�and-Terrace Successor.Agency October 16, 2013 Page 6 of 22 2.0 Long-Range Property Management Plan Property#1-.221.00-.Block.of Barton. Road fV W--7, ��. fVicCfarren �t L X ry �. o !f Q a c d E- 5 io IMA_d_dress. 2�100 Block of'Barton;'R`oad'- o APN 0275-242'710&0275-242-11 Lo#Si e; 0_8&ajcres ,(F3;8 333;-square;feet)} d Use Vacant land: E Zonin.gr, BwRSP' Geneal:Comme_rcial:' Current Title City of Grand Terrace-Successor,Agency: a ti The anatyses�_projeclionst essumptiorfs,.tatAs of�rehririsandany�0zamples p7esedtbif.Fieiein�ie;fofllliistrati4e purposes and,aie.i of a`guaran[ee_oEactya�aniUcr,fudge iesulf�;RroJect pro,fomta:and'taut'ariatyses;ara proleCtiprls -zl- ,only./,Cctual resulf s-may differ ma[erialtyfrotn tfipseexpressed in this analysis.. �_,_^_._ _ ko o, eK Oo Fz 4! S v*O 35fFi Ftopr ease eyes Califgmfa 90�17 -pfi;21 ;417 3kO fax 213:¢17._ ' PaCI(etiAPg `52 Long-Range.Property Management Plan City of Grand Terrace Successor_Agency October 16, 2013 Page 7 of 22 Acquisition &Valuation Information- . . - .Date. 1/272009(�AwP.N;#a275 242-1~1 Purchase, - - - 8G.1wZQO`9;(APN° #027$24.2-i0);, Pur."chasd Pr` cd- $399,231' Fundi�:g,,Sou�ce; Taz,i'nceement., ' Future commercial development in f advancement o Purpose RDA planning objectives a Estimafe;of'.Ctsrrent{Ualue: $3'50;,000 Method-of Valuation Professional appraisal obtained by-Cit- -dated August, 23,'201,1 , WWI . . . . . . c •, .,, ' �;-. _. ; ,_ :• . :•" d There are no;revenues.gen,erate'd:Aby?;this,properly;land ifiierelno > Confra'ctual `" ° contractual4:TOC_uireiri t.d,j'is, rope_rtj� Q Requiremenfs _ _ a. c History of Environmental Contamination or Remediation Efforts- Property#1 IL ; uPfia'se l:�"nuironmertal<Site-rAssessrrient�'.andCirnite;<�'Phase:l�l• - E=O#t nmental Site acreemng dotedifMacch 18 2009, A r l,1= 4,, t 2009 and September 11,,,2009 No.known,history of ernuironmenfia'f.contami'nakiorr des_gnation'as:.Bownfeldts'ite ors �a ,,-�_- _ remetlation was.identif'ed:• , D.ur'ng the aforernentoned':escrow;,a-subsequentIL :Phase'1;- o AssessrneNnt'was conducted-by 0"R'eill�r,;.wlieh�dentifod'•a•`1•A; cub'icl orq o`il ile>as,:a:'Re.co sized'.°EnVironmental?��Q cern-� � Sotl Removal' •` Y P 9' �`' - c ,:. - er: Re-vied ;(_REC): Additona'I'soiL,sampling,oft",he soil-,pile determined the p t tock it contains nonhazardous(euels of'tliese'I^antl motor;oil;1 p .w. . t o� frange•:,hytlrocarbons:.As a;.condition fo the:closeof escrow; o �. O Reil6 was;re uirin the'A `enc ,ito;remove=:the soil:from;tt%e Y �q :.9' .9.� Y :. property,Yo properlyr dispose of#heaoil pile to fh�e appropknate : tceatmentstorage,disposal,,faciljtyd,diti.onal,aralysisfo'r �wfid,`:rretal's.is';requred �- - T4he Agennc1y_Llias. ncluded'fhe,.:anti'ci`ated',ost:'of',sol:pemoual on a fhe Reco sized Obll ation;.Ra'rimenp'ScFediale, The eiiaiyses;01*06ris;essuaipticns,-r atee 6f retuio and:an-y,examples presentetl.h'erefn t3Fe:faplllastrstliie Pujposes:and ai@—nota_gyerante8',6tactu�aitdforfiitura'iesults';ProJeCt pio:i9rtna,gtld`_t8x'alialyses ate ptbJctiGbs• N on 6- South Fipue(oa Street;35th Flom t o'sAegelas Galdain(9 90Q1r Pti213:a.I A99 fex 213.41t3', o acket;`Pg 53= Long-Range Property Management Plan City of Grand.Terrace SuccessorAgency October 16,2013 Page 8 of 22 P;ofential.f""or°TOD1° Not appli'd ble. development.of retail commercial-uses advance Agency Planning Future Objectives Agency objectives of elimination of blight and strengthening of commercial uses and the economic base of the community This' ,propeity was,in escrow fo_ sale to. O'Reilly Automotive WOWty. - Stores; Iric ('O'Reilly„"')`' m May, however; escrow: ;was a - - - - te�m1,ated inAugust;of'2:013'due to re`tlevelop�nent�dissolution: a,- �a Re-d6rfufi-enjd"itt`Io.n for Ois�po dp6rty#lar As=the Puc has °c e an:d;Sale.Agcee`mentWit_h:O Reilly is no in,placeat this time;fat is recomniended;that°the property 0 sold;to:a developer or enduserfor deeloprest,consisferit', a Liquidation, with Agency,planning-,objectives for a sale pnce�consistent with? a estirnate of cu rent uaCue; Reven`ue;generatetl from-th-sale;.of _ this property is proposed'to be distributed to local taxing'; a a:gences:.pursuanY,to AB 1484. C E c - - o ' L a d c _ co 0 J E c� B Th_p oAuarsd+,preof®cH,dns,'assurtiptions;.fs_ies of reti.im,en3ieny ezemple"spr®serited heral,d are forillustrpatcivj t s l M tye igornpones,my m e�c tiorjs arietysis kosmon� 86SSouthFigueraSStreet 35thFlop� LosArgeles 'Cafifam(a 90011 ph2i3417,330U fa)� 13.417. ;T�Packet=Pg.,_54 Long-Range Property Management-Plan City of Grand Terrace Successor-Agency October 16,2013 Page 9 of 22 Property#2: -22747 Barton:Road d1 H11"' aCL Cy r o Q. a a. .,� d A Palm Ave in i MI c. Parcel Data— Property#2 d Address; 22747'. rtoi P'Roa`d -APN .-0276-202-54 Lot:Size, 0;3:3,acres (;14;375sq;ua:re,'f,.eet). ] 0• Use V6carifl6rid Zoning S4RSP=Oft'ce:Professional d Current Title City of.Grand Terrace,Successor Agency me eiiatyses pio`,.', s�assumpGdns,.iates,of refurii;`end.eny ezamptesPresentedaierein eie;to�.iltustn3tive purposes and are nJe�guarantee oF,ac{ua1 and/or future resplt8:Project,pi i0nna aid tax'arialyseg arg'proJactiags, onty.Actual results may differ mateifall`y trom,those exprossed mthis anelyats 1CUSrilon" 865SautAFguirodStreet;35thFW6r ;Cos;Mge(es Califoirife 90Q1r pnzbAfxa�ou' ii.ii ui.. _ Packet;°P.g 55 7'8C_b.-- Long-Range Property Management Plan City of Grand Terrace SuccessorAgency October 16, 2013 Page 10 of 22 P;urcl ase-D.atei -� 0111:3/20;09: Purchase Price $360,000 Funding Source ,Tax Incr..ement Purpose Future commercial development in advancement of RDA planning objectives Estwiinafe:of`Currenf,Value` $1,1,5 0,Q.0; - - - - Method of Valuation Comparable sales evaluation a IL Revenues o There.aCe.0 revenue_s generated:by tf s property:, an'd there:no. Contractual, _ contractual requirements related to:this property,. o _J 0 e a No known history of environmental contaminationcl,' None- esignation`as Q Brownfield site,.or remediation _ a c P'otential�fo`r�TOD; -_N.ot applicable � � — - Future commercial development will advance Agency objectives Agency Planning of.elimination of blight.and strengthening of commercial uses and 2 Objectives the economic base of the community: Immediate proximity of the subject property.to City Hall should also be noted. Q. 0 Previously abandoned'structure on-.site was demolished. There History has been no notable development proposal and other activity in = connection.With this property since A ency acquisition.. 3 - d Recoffirneindation for bispositions �', �-Stale of;property to,developer or.e.indauser fo�de�elop�ment .� � consistent with Agency planning objectives and'proximliy to City a _L q, -OrL HaIi fora sale price consistentwitF%estimate,of:currenfy6lue. Revenue generated;frorri'tle sale of this_,piroperty. Is proposed;to;.• l esh uteri toaocal;;faXi'ng agencies pursuant.,f_o A6.1484. The.arialyse's,projerpioris,assumptions,rates'of retuin,andfany 6_hfnples presented h'ereiri tie:fo�illustrat ve purposes and are riot a pro- ring and tak analyses aie projeo ons T rr only.Actualiesu�ts,inaydiffatmeter�allyfromtliose,expressedin,thsanalysls. ICOSITIOri' 8q..jouth'NuoroaStraet,35thFloor L'os4g'geles Cslifomia 90017 p1i2Q3'41T.330[] fax213.417.._ 'Pac{tet 'P 56 „, . . ___._.9. Long-Range Property Management-Plan City of Grand Terrace SuccessorAgencyw October 16,2013 -Page 11 of 22 Pro pertV..#3:Vista Grande:Park Proiect Q/ J� IL c. rt 3 _: sy � � C C ro � � o tv a. V i a to GrandTerrace Rd Im ' eo Parcel Data— Property#3 _Address J 22720:Vista AGrantle 1Nay Q AP!4 0276`"462 4 0 s a 6t,Size; 0:35.,(15,24:6 squ_aye feet); c Use Vacart.Land - Zonin'g Residential.(;R:1=20) c Current Title City.of Grand'Terrace Successor Agency 3 c - d Acquisition &Valuation Information— Property#3 - Purchase Price Funding:S'ource; Taz ft_ meni Eliminate'public.nuisance (red=tagged;"foreclosed Purpose residential structure) and provide for-open space or f iture:civic use Estimate-of Q'gjrenf•Value: $;0 Method of Valuation Non-revenue generating public use with consideration of unstable geotechnical conditions The*risfyses,'ptojectldris;assumptlona rStes'of'retumand'any,examples ereserit�fi liemid�ie;ffirillus�rstiva purposes 3 rsot a guarantee of actual ar dfol fuGua Tesull9: ojeet pro(omia W tU aAalW ar9 andan Pr projegdorls. only:Actual results_may ddfer meterlally from those exressed in,this analysis kosmon'' &6,abA Figueroa Strget 35th Floof LosArlgeles CelflorNa 90t}1T ph?�3 4173300 fax 2t3 417:' y P1CIC@t Pg..'S7 Long-Range Property Management Plan City of Grand Terrace Successor.Agericy October 16,2013 Page 12 of 22 No:•Revenues'_or-_,_..__�.___._______�__ _ __-�____.r __ _______._ , , C.o.nt�acfual T_liere are no reue,nues:'generated'bytl_is,property and- eWactual�reguimmenw., Requirements Mel WIT MI . MGM • . . - Proper yincludes unstable soil L g,@r-portion oAf'�parcel (,Nafural $ubs'diing S_o'ih Hazard Disclosure ReLporf otitamed,'by City dated May a •Cond_'iti;on_s.J P�gperty;is.;lo.catod in•".Slide,Prone.Zone"within:Z Un,' General; a Elan There is no history of enu�ironmental contamination; a) c �_�_ " - ._designation as Brownfield site, or remedjatiori. � c 0 o The Vista Grande Park Project is explicitly indicated as one of 14 a _priority non-housing projects in the approved;RDA Five-Year Q Implementation Plan adopted:December 8, 2009;for the,years Agency Planning 2010-2014 for.the advancement of Agency objectives:##. a Objectives (improve parking and open space) and#5.(civic and cultural -enhancement). Demolition of-the.previous e6d4agged, E foreclosed residential structure also served to advance Agency .planning#1' (eliminate"blight). . . . . . . a 0. .P-:OVi'ousl� ;abandon'ed;sfructure„red'=ta ' `ed' sforeelgsed -T Y - ( g9 a ;residencg)•on=site was,demo.lisfed'.:`There,lids been,no notable History development'proposaf.activity or other activityLn connecfion,;witli C this ro�e since A"enc ac utsifion fr-orn the revious Bank P prtY 9 Yvq p; owner as a Real Estate Owned.("REO').property. __ _ _ o .-i c - m E .c Pa`rkilyses,projeoHot(s,assUmpUons,rates'of iehi "and'any`ezamplesprdsented hereln areddr illustrativo urposes and are not a guarantee of act6al,andlo7 future results;Project pro•forrna end'tax anarysas ere'projeotions, - on[:Actualtesults,ma diffar,meterlall .fromthose.e ressedinthisanalysis. _ _,�_Pry�^��__ iws, no,� ttt95southFlgue, 'street,35thFloor' Los;Ange'I s b4f&rua 9001T ph213.417.3300 fax213,41T31 `Packet Pg,.58• Long-Range Property Manageinent Plan City of G?and Terrace Successor Agency October 16,2013 Page 13 of 22 -Retention ofltle 4Ptopperry by ttie Cifijr fog gove�nnierit.use.consisfent with its identification.as,a,pnonty non-liousing redevelopment proect dsdRDA ive= a�'Irr ,a 'wit ritieappvdand ep _ t a P-__Wr H.ealtt pa q,afe /QLb d,$0-C i'on,341:9,1.,5 c (2a)(A),.allows"for theCity toetairi tifle�,to'property fog developmentthat:'.'s,iricluded in a tedeveldpme-,plarn.and also;:fgrgouernrnenCL t`use,, - dh:,May'"1.4;201'3�and,June,'5'.,,90-M-3„t'he Success'o-Ag`eru -and IL _ - � "Oversighf B:oartl adoptedr:;especti�e�tesolutioris��approuing,the. � - d Tansfer•to'Ci;ty, t�ansferoftle.Property'.to:thgrCtyof'GrandTerrace,'p,ursuantto. ' c fdtGow irnment. Healtf :and.Safety Code Secti'orns 34:181(a)and:34:1g1:3:.y'On ca Use'. October 15 .2 D:OF disallowed°thear_ansfer as the.do ark: vent=of tfid.propert: °has no yetbeen consc , Hw �;devetL% opm. Y'•: ,� as a.dsg parkas dentified':n tF_Q adopted',RDA,5'=Yeas'. fmplementati;bn'PlarjA$,the:best.use,-ofr' -,,,p_roperty,anti'is viable. G;uen'the unsta'sle.,geotec} ncal;,eonditi;ons,afi'tfe property; one a possible future;use's a d:og park as,proposed:by a,eommuntj% , ughunteet,organizat--n,... 'V1sta Gra de,P,afk_construct oncosts were". a explicitly'indicated among,designated use-s,:of'proceecJs:from thee. -, m RDA.2011A'Tax,Alloeation Bonds.: d. - _ - - - a, o. L. 'a c ' to • c 0 c d E s • Theanaly"sse`s,_projectltiiis�assum,'ptidris,rates'oT.'r"eturtiiand"any,e�iampte'spresentedhereidA`re•fo�illu$Vattve _ jiurpos�s and are:ribl a;gyarankee oFaC�ual;8rjd/or tutufe'resulis;Project protorma andtaz an2lyse's ai_e.projections, - -- etty:Actual results may differ meterially.irom l}�ose expreased'in this analysis, .. ,: _ �_�.,__.� kosmoon' 865soapiguei ddtie t;35thFloor LosAngeles Cel�omia 90�Ir pn213;4j73300 faic213:417., :,PaCket:Pg,59�,, Long-Range Property Management.Plari City of Grand Terrace SuccessorAgency October 16, 2613 Page 14 of 22 Property #4: ;Mixed-Use Specific Plan Project 1:3 Mixed-U66Specifc Plan `° ' r Barton Rrd' Project Boundary Specific"Plan ProjectEL IL A'. 1167441-08. - w 'B 116 AM-74 tof�I Pi JII . f ." vDe • err St O '. y 'E� •1167=167-113 ..y,�} ��;x � - � F 1167-76104_ i' f O • a.._._ CL a �� +wr' ?�• - r=Va Buren St i Riverside ii " i'•' �• _.. 'j :Rico' na Cal Paik, F - ,,: - �}F,- •-�._; �- +r« Pico S t %� d ', • ' '� Grand terrace,! IL a, � `-•`"'�; ��' e�. liigh'Sch'pol 1 r O cc Address' � 2:1�992_&2:1,974'De.Berry Sf� - - _ c 21900 BJo'ck:,of V_ an -urea,S't: E 1167-141-08 APN 11,67-151-68, 71, 74 a 1167-161-03, 04,.22 'Lot,size' 5'4'.1 acres - Use Vacant:Land Commereial.manufacturing;11'67=1.41=08; 1.187 15'1=22, 1167=161=03, 04. ( = - -Zoning• Restricted Manufacturing 116,7 15.U71. 74 • MT2'Itdwsf�ial:1'1,6.7-151=68 General•Plan Mixed-Use (Commercial/Residential Mx) .. _w _ - .... - - - CurrentTitle Gify:of''G'randlterrace S.uceessor A enpy The afidyses,projections;assumptions„rate's of ietum,and any.examples'presented herein are foFillustrative purposp§and:are not d j arantea of actuaLand(or•future iesulta.P,roject prodorma and fax analyses ire projections, onlyActiiatresuks.maydiffermatedally�fromthose,expressedmIh4analysis, _ __ —, __,___ �,_ k0$riT01 � 8fi5$oath Fgueroa Street,35tt1 Floor Los,Arigeles CalAomia 900IT ph 213.4tT:3300 tax"z�3.aii-3 Packet Pg a 60.J. Long-Range Property Management Plan: City of Grand:Tetrace Successor.Agency October 16,2013 Page 15 of 22 Acquisition Valuation Information— Property#4 ,22/2000 12;6,7�15,1.=68, 7,1;74 -- 07121 0-0.5 1.16T 1;fi1=Q4-, Purchase-iDaYe-. 08/16/2'0.0'5 1.1,671'6'1'=03 4 1,0/25/2005:11;,67=•1'41=08. - ^ � " 007/29/r20;11 ;116T-..1,`51?=2%2' 1167=141-08—$245,280. - 1167-151-22—$1 i308,702 a 1167-151-68—:$500,191 - 1167A 51 71 —$166,395 L Purchase Price m. 1167-151'-74 .$523,962 1167-161-03—:$899,953 1167-16.1=04—$409,701 Total:—$4,139,184 Tax imcrement,including p�oceegsJf, mM,-he�R_DA Tax All'ocation? o Funding Source f Bonds Lssue�of=2011 B. �. Purpose Larid-assembly for large commercial project in:advanceme_nt'of RDA a planning objectives. 1,l,714.1=08 $283',5Q:0; �° 1167 451 22 0: 92T _ hIn - a -� ;$ ($�_. ,8©0'fjefore:adjustment#oi wetlands miti'gat'ron). 116:7 15;1_fi8eywa �.Watt'a' E E__timate,of': 1;16.,-.- 71 `$0:($216 40O before adjuustment for storm water;mtt gati'on) J. : .Current Value; tM 1167=15144$_Oil MI Q22;50.O bef_ore„a i`ustment'forwetl'ands_ii t anon)` `0 1,16T1;61_03 $ 9,:100' 6 147,k-61 04 s47'_4'3.50.0,, - c. Method of c Valuation' Comparable sales evaluation t d GeneratedRev . • • . • Property �- Th`eiie are no revenues enervated b nthis o e, and no No-Reuenues.o�� _.._;,._. �__�__��.9 .. __ Y _t__.;P=�P�►1Y`w.: Q;-ow actual contractaali requirements 'It,s'l euld,'Ije;noted that'Parc`els C-an'd'D--' Requirements. include approximately 1',1 acres of anticigafed storm,drain d ____easements,:. PropertyHistory of Environmental Contamination or Remediation Efforts No known-history of environmental containination,�designation"as None Brownfield site, or remeciiation. It should.be:noted that the-Property. contains approximately 4 acres of wetlands that will need to-be maintained onsite._ . - • '; ' The eristys`es,_pniJections;assumptions;iafes'o6Fetum;?aritl:any:examples preser!ted•liereiri eie fot.illustiative • ` < purposes arid:are,gbtapyarantee;ef actual andlor:(uhaie iesulte;*FrbJect pPc forma Grid tax anatyseg5rp.proOctions - � onty.�Actual rosults-may rlrtfer materially fioin_those expressed m,this analysts ,. ;_,� ____µ_ kosmon ; i66$.Flflr,�roastreet,35thFlooi .Los'Arigeles caurornra sooli pnzaa;at7330o tax:?13: i�;- : Packet.W1 1 - Long-Range Property Management Plan City of Grand Terrace Successor Agency October 16,2013 Page 16 of 22 Potential,forT_-----------�._._-----------_._._— -----_-w--.____-_-------------- - TO"D" JJ N'ot;applicable• " The Mixed-Use Specific Plan Project is explicitly indicated as one of 14 - Agency priority non-housing projects in the approved RDA Five-Year Planning Impiementation:Plan adopted December 8, 2009 for the years 2010- Objectives 2014 for the advancement of Agency objectives#1 (eliminate blight), #2 _ (strengthen commercial use), ##3 (strengthen economic base), and 49 .(Improve utilities)." a IL a� c co c 0 J d O Q. M a v c IL c d E to m c 0 IL d • c- " c 0 J . u c m .E Q " The aralyses,proJectforis,assumptions;rates.6f retum�and,any examples.pre3ented'heietn are far illustrative pyrposes and;are pot a_guaranEee,of actuaLandlorfutureYesults,Project.pro•torma atld'tax analyses ore projections. -, orify.,ActualY,esultsmay;tliffermeterially,irn_m;thoge.expressedinihisaneljralq. kosm— 865 South piroa Street,35th#toot LosArigetes bilifomia 90017 ptt 213,417.3kO fax 213.417.. PaC{C@t 12g:,62'v Long-Range Property Management.Plan City of Grand Terrace Successor-Agency October 16,2013 Page 17 of 22 • � - . • . • • • i . . - For' mode,-than tiiab�decaden,, the. City, bhas, attempted :to fosfe developrneritf m the Spee'ific. Plan Projecf Area' (also:known as; :tfe Southwest Commercial S_,ite): However, the- significant drainage &; -� seliuer' infirastructu�e imp��gve�ment`s_' required f_a_e ' hlampet-d The;.prop_erty eonfains aPproxmately,4 aces.:of�wetlands:.as designafed° bye the Califo_rnia, NIYOrt,nerit of Fish; antl'Game and 1,1W U S Army; a 77 s g ne . th w aieCorps o Eg ine o , nfd ons Develo_pinent:of the..propert— ifl" require refen�tiotn basins on: the site': and:s gnificant'storm- d`rain> it provernerifs.along'D'e Serry:,. Van'Buren,. _ ec antl Pico Sfre_ets, recJucing developable 'land on' the property by aPProXimately:4 acre"s_ San B`ornard no_AssocationTof'l3gvemrrie.n'ts ;Caltrans a#"thie�Gify'a�- ,. > working to replace the 1215 rnterchange;at'Lfton_Road -howeue_'.r'local'. a. sheets"than w6ul'tl:provide,.accass to the property':are not;ad aqua they.i�ricreased`traffirc�`v`olume that would result from.development f the prgpe_:,rty: SPgnf cant;curb, gutter;antl,storm.drain improvements:would a bee°additionallyl.required-. n. �MisYoiy J W edeglhe.City dnpaaad s vif the Projecf to allgw; IigPub, industrial uses., since the'',retail' project" uses, 2Fwisiotletl,.within:the 1.983: General 'Flan dd not probe viable:due 0 fteeway a_ccess a,nd gther defcienc'ies:,;In20:1:0,:ttie'Ger e�al Pla Wy n,,u as updated to a-desi -pate. the': ro;ect 'area as well as su-ro-.-li" rpesaM taoo ,fe pecifc n cpoer Plapean t was;critical fo the City to'specify`,the rec(uirement of specifc plan so: :a that;the project areawould'de�elgp,in a coF esive�antl:orde�ly manner: The RDA entered"nto:a Mernocandum:;of:tJnderstandi'ri, dated: SeP,tember 1:1`;• 200:T with developer ;Grand Ten aces. Partners, 'LLC . o ('`Developei''):'follo_,wmg an. Exclusive 'Negotiating �kgfreeme'nt ("ENA''�) 1 with, Developed; The;irit_e_nded.,wse included trecrettional ,commercial` c uses: T'b_'," Developer a entually, withdrew, from #he'.,projeefi however;.,; due to nsufficent`freeway access, Parcel _B. underwent: a•lotyl'ine atlju9 rn nt to accomrriodate B'asebalh t Park Foject on,parcel 11_fiT=1;51 ti7:5 a .A:formed single:family"residence_ F was demolish:e'd on.P-mel F: .The ariafysea,piojet ,`assumptlbTts,Pates'of'retum�antl any:examPles•pPBsented"herein are WIMstrative purposes anit.are:not"a,gi{aiarifee of agii�l;�rid/or.fid<+re;iesults:'PrcJect jiio(ointa end tai--'b6 fyse'isia pioleotioms on1y.�Actual results.may diRnr.meterjally fromithose exprossed In this enalysla. kOS#ri;4n 'ess""Figuaroastreet 35thFlooP tosAngeles callarr,ra sooaf_ "ptizaa aoo tax2f3a�r Packet Pg.'63: Long-Range Property Management Plan City of Grand Terrace Successor Agency October 16, 2013 -Page 18 of 22 RecOmthendation forDispositione • - - �� T ',Retention of,tle property by the City forIfu development consistenf with its, dentif cation as a_,pr,•iority'non'=housing redevelopment project w,ithin tkie approved and adopted RDA.Five Year Implementation,Plan: Gi ,en:the;extensive infrastructure improvements_ reguire,.d:in order l_o. facilitate viable.commere(al`devetopment.in,t o future; it is recori ii endedt'o enable tlie,City-to.cont nue assemblage aetivitieaas outlined,it the approved and'adopted:RDA ImPI_ementati'§n Plan,, Health and $afety Code Section 341915 (c) (2)(A) a_Ilows'forthe Cityto M Transfer to a retain title to property for deve,,lopment,tliat i5:in'cluded in an,approved 0 F Curer redevelopment plan. This property and future cornmereial'ddevelogment - , are consistent with the_.redevelo 'inent. .lans and ob e'etives: Development P- P -_ _ _ ._j_____. __a Among designated uses,of'.proceeds from;the RDA_201'1A Tax Allgcation.Bonds,,were Specific Plan Project Area i_nfeastructurg study, c d'es g,n,and,eonstructign and.Storm;drain and stye_et:r-bgDii tation on Qa. Ven;Buren,, P.ico,,;arid.Main;Streets'. .Q Froeeetls frori . fufure.. sale. of the: property are reconith ed for a d a 0 L a d c - as 0 _ - d E . Q The analyses,project oos,'s hrr ptlons,rates ofYetum;and any example's-presented herein Oro fdrillushtivb purposes and,are not a guarantee ofactual.and/or future,-results:!rojecfpro•fdima and tax analyses ara projections only,AwLtal'esults may differ materWilyfrom thos exprea'sed in this aneysis. PA kos.mon 865south Fgueroa street,3e i Ftao'r Loski eles ca4oka 90o1T ph 219A47.330n fax213.417., 'J .Pc'1C{CEt'Pg. 64 -—mmpanka - .. _ .. Long-Range Property Management Plan City of Grand Terrace Successor Agency October 16, 2013 Page 19 of 22 Property #5: Baseball Park Project 1la�n Buren St IL IL IM o %6 _ c CL a :Pak - d m tc „' - ._ _• a _. .l�..s ,- .. r.. -_ - - "' T •\. Parcel Data— • • Q, ° Lsnd Bef+vee.n'219O0 Block of Van Buren Street and 21874: a Address; . Pico Stree,t:- APN 1167-151-73 &.1167A151-75 Use Little League:Baseball field and Baseball Field Access ° Zgni'ng Restricted Manufacturing General Plan Mixed-Use (C.ommercial/Resideritial Mix) E City of^Grand:Terrace,$uecessgr A enc. Current Title _ _g y ° The analyses,Prbjeotfdns as4 f!p*ns,retes'of*returri;-ahC,any examples presented.herij-Id ildt illustrati4e purposes.and.are,r)gt a.ggrantee of actual;Oqdlor.W6--rosu7ts:Project pro4orma and tax analyses are projections, only:Actual results,may differ materially from those exprossed in aanalysis; kO$IY1O21 885 South igueroa Street,35th Fioot Los Angeles caldainia 30o1f pf Ii 417.3300 fax 213,417, .v Packet;Pg ,65 M.8 C.b.___. Long-Range Property Management Plan City of Grand Terrace SuccessorAgency October 16, 2013 Page 20 of 22 • en.&Valuation l6formatipn • • - urctase11'7221200.Q _- Purchase-Price ;$83,700 Funding Source, Tax;MOT 0 t, - u Purpose Acquired for land assembly and park purposes Est mate;of"C.uaftValue. $0 _ Method-of'Valuation Non-revenue generating public-use . a a a� lyo_Re enues OW_ �T,There:are;,noi revenues;generated it-,'.is p;rgpeity ani ' Contractual_Requirements no contractual requirements _ _ - .- .. o _ J H[st • •f-Environmental CohtAmiinationor RemddiatiLon • • • - j • C No known history of.ehvironmental`'co`nfamination, designation-asn- CL None Brownfield site, or remediation. Pofential:for7TOD_ 'Nof.,ap.0 icable.- E The Baseball Park Project-is explicitly indicated as one-,of 14 priority non-housing projects in the approved RDA Five-Year Agency:Planning Implementation Plan adopted December 8, 2009 for the years Objectives 2010-2014-for the.advancement of Agency objectives#4 ' (improve parking and open space) and #5 (civic and cultural a enhancement). 2 IL c otheravhan;the,tlevglopment-of,lthe,ezisting baseball1iftl Hisfory improvements by the RDA, there has been no notable ,dg�elopment--pro_posal,activity or oti.e_r activity in,connection,witfa' _this pro,perty•snce Agency�acquisitio'n: .c �a a The analyses,.prejao" a;assu'mptons;;iates'afreturn;end(any',examplesipre&anted'hereinaie;forillustrative purposes and are clot a,guaranfee;of actual,andlof.future ies`ulfs:?rcjgeI prq,fo6a and tax analyses are projections only Actual iesuits,may differ mateddlly'from`those expressed in thisan''alysis. koI;)MOr '8&fSo tkfi eroa Street,36itt Floor' L SpA6geles `Cellfainfa'9001t ,pli 213.417.3 00 fax z13.aii. ;Packef''Pg4 66 Long-Range Property Management Plan City of Grand Terrace Successor Agency October 16,2013 Page 21 of 22 Recommendation for Disposition —Property#5 Retention.of",the:=pro.perty'by;the:Cify:for,goyern_mUhf uses consisfent;witf its denfif'cat on as a p�i6 tyj non'bOusing redeV,-r'Ment�pibjects.itfiiff el appt,6_d,and'adopfied RDAs Five=Year lrriplernentat'r`on,Plan 'H'-3h,?ffd,§t y:;Co_de Section 3419'5 (c)(2);A}allows fob fi 16JCit; ,to retain titl6 (=_)' Y' Transfer to'Cif fore= property%fo��developimenf tf af,s ncl'uded_ in=a'.redeueloprneh ;plan anrd;also:fog government:use -- G'oernmerit Use n. Un.atldifio n on'J;urie;25 20.13 and July 17 20.1`3 th'e•-Succes"sor> d c r and Oye;psi ht B'oarcJ'ado ted.res ectiue�teso A en lutionss' approving tie transfer of'the pcopeie-:City,if IG-and a�. Tg�ra-0,pursuant to:H'galth'and;SQfet-;'O-O Sect Oh.-_s 1;$'1'a- and:341'91:3: 'Oversigl%t;Board;acfion w_ as fonivarded'to aher -' - - DOF: a c e .E . R d a o - :a . c , co a� c - 0 J t+ c E Al Q The analyses,p*Cgdds;assumptions;tatas'df retiiin�'aridarilt amples:preseritetl tieieiri' re fdrlllustrativA FRI pu�pos�s and are i�ot a.guar-antW',ot•,3ctyal;sAjy r future i@salts;t?rbject:pro bmia and taii.sealyses`are projectio0s_ arity.Netual roaulte may ddter,matedally,hnm thase'exprosaed,in this anaty�l. ••. - _ _ _ —.� 1cOStTio�n 6G5southfl�ueroaStreet,35thPIoor �osMeles CaUfainits 9001t pti213;4�7:3300 ii2i�.aii;; Packet Pg,67= Long-Range Property Management.Plan City of Grand Terrace Successor Agency October 16, 2013 Page 22 of 22 3.0 Attachments A. Approved Five-Year Redevelopment Implementation Plan 2009-2014 (adopted December 8, 2009) B. Report to City Council on Amendment to Redevelopment Plan (Adopted May 11, 2010) a C. Mixed-Use Specific Plan Project California Department of Fish & Game_and U.S.Army Corps of Engineers Wetlands Jurisdictional Maps D. Mixed-Use Specific Plan Project Storm Drain Easement Legal Description c and Map E. ,Tax Certificate for 2011A RDA Tax Allocation Bonds (including List of Anticipated Uses) C v ' c ttf a c d E i� - m o. o a d c M a� 9 c d E a The analyses,.proje'gtions4 as'sumocons,,rates.of}eturhr and any ezainplee'preserited•heFein are3orillustrative punioses and.are nai_a,guaranfee of ec(uaLand/or future:result;.,P�oject pPo;(Drina and'taii analyses are"projections only.'AcEuai r0uh may differ metmiatlyYrorn;' e.expressed'in'Wi ahatysis, .., kos'm 8$5 South Figueroa Street,35th Floor' 'j_o4 Angeles �cemoRa A001T ph 213;4�7.93Q0 raz z�3.aiz.3 Packet?Pg.'04. ' d c cc :ar CL 0 J d City of Grand TerraceCL d Community Redevelopment Agency E �r • 2010-2614.Implementation Plan N • -o 0 N' Grand Terrace Redevelopment Project Area a E Adopted: December 8; 2009 a Resolution No. CRA-09--11 ,a Packet[Pg:fi9 Grand Terrace.Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 Contents Page Introduction 1 c About the Redevelopment Plan and Project Area 2 �a o: Proposed Amendment to the:Redevelopment Plan -3 C;, _ 0 Recent Accomplishments 4 —' Redevelopment Plan Goals g 0c0'. a Projected .Tax Increment Revenues 7 � Proposed Redevelopment Program .8 a 0 Housing Set=Aside•Requirements 9 . . m Proposed Affordable Housing Program 11 E Housing Program Compliance Objectives 12 . a 0 Housing Compliance Plan 14 CD Available Cow/Mod Housing Funds 14 0 Housing Production 15 CD a Replacement Housing 17 = 0 Proportionality Requirements 17 E s _ co Proportionality Expenditures Based on Household Income Groups 18 a w Proportionality Expenditures Based on Senior-and Non-Senior Population 19 E :Housing Units.Constructed Without Low/Mod Funds 20 a Housing Production Goals 21 Plan Administration 22 a,Packet iPg_7,0•� Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 20:101hrough 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 1.6.5 of California.Community Redevelopment Law (CRL), the.Agency has prepared the:Implementation Plan for the Grand Terrace Redevelopment Project Area, and this ii Implementation Plan was adopted:by the Agency following a duly noticed public hearing held on .2 a. 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 0 achievements. 0 The Implementation Plan conforms to the City's General Plan and has been prepared according to Q guidelines established in the programs and:goals outlined in the Housing Element-of.the General -- Plan. a - c 0 m E 2 a E a . .c 0 N O T N Q _ d E v Q _ d' E s _ eo a Page 1 of 22 Adopted December 8,2009 mPacketiP.g;71 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 a 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 c it provided for allocations to affected taxing agencies: Ordinance No.52 was adopted on July 16, It 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 0 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 o of the Redevelopment-Plan's dollar`limit-on tax revenue. The fifth and most recent amendment cQ. occurred in 2004 when the City Council.adopted Ordinance-No. 212 to extend the duration of the a Redevelopment Plan and'the time.limit on paying indebtedness or receiving property taxes pursuant to-the Plan to July 15,.202.7. a - c 0 Table 1: Revised Grand Terrace Community Redevelopmeht Project Adoption date 1979, amended 1981 m Expiration of Plan 2017 No time limit for non-residentially Q Time Limit for Use-of Eminent Domain. zoned properties, no authority for residentially zoned properties Time Limit.to_Incur Debt 2017 N Time Limit to Repay.Debt 2027 0 .. .... . .. .... o N - Q 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. M Redevelopment in the Project Area has been responsible for development of much of the City's a public infrastructure, preservation of the community's supply of affordable housing and development of new aff or able 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 M complete redevelopment projects.for the next seven and one-half (7'/z) years, until the Q Redevelopment Plan's:effectiveness expires in July of 2017. Page 2of22 Adopted December 8, 2009 :Packet Pg 72 ~ Grand Terrace-Redevelopment Project Area Five-Year Implementation Plan 2.010-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.::, r a • Extending the duration.of:the Redevelopment Plan and time:limitto collect tax increment a �— revenue by seven years, pursuant to Section 33333.6 of Community Redevelopment Law; 0 . - c • Increasing the limitation.on the amount of tax increment that can.be allocated toAhe Agency fronthe Project Area from $70 Million to $225,000 Million; c 0 • Increasing the limitation on.the amount of bonded-indebtedness that can be outstanding at one time from $15 Million.to$65 Million; ° _ a . c. Replacing the-description of land uses-in the Redevelopment Plan with language that a 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 a c 0 Amending arnd restating the Redevelopment Plan.to:iricorporate 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 E. Agency to..implement projects and"programs necessary to alleviate blight and provide affordable housing-withih7the.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 c 2011-2012, at which time the Agency's debt will not have been,completely:pald off and the Agency's housing obligations will:not have been completed. The Agency will not have revenue to c implement any programs or projects beyond the 2011-12 fiscal.year. a 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 221 Adopted"December 8,2009, : • Packet�P M 73' - 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 Qi businesses were relocated..A City of Riverside 48-4nch 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 tb _ complete improvements to Main Street. 0 ' m • Property.Acquisition.for-Project Site Assembly. Property acquisition-.for both the freeway- Q. oriented 100-acre project (former Outdoor Adventure Center) and the Town Square Q 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 a- residents. 0 0 • Commercial Improvement Grant Program. This program is available to property owners and/or business owners as an economic incentive to rehabilitate existing :commercial :E 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 c paint/stUbco, new doors and. windows, decorative awnings, signage, .landscaping and lighting. One .major project is underway and a second has been submitted. Both are c shopping center rehabilitations. N 0 ' T • Completed design plans to underground overhead utility lines along a segment of'Barton N Road. a c • Completed design of community signs to strengthen civic and cultural functions. E s Acquired property along Barton Road and demolished abandoned on-site structures. wo • Acquired property along Vista. Grande Avenue and demolished abandoned 'on-site :d structures fora:future park facility. E �o • 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. Page 4 of 22 .Adopted December 8, 2009 :Packet Pg;'74 Y- Grand Terrace-Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 Housing • 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 -a household to purchase landscaping and irrigation materials for front yard improvements'and. a exterior paint.. The goal of this program is to reduce.blight and property depreciation caused by deteriorated.exterior paint, poor.front yard niaintenance and the lack of-front yard C 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. 0 • Canal Street Project. The Agency is continuing to work with a developer-to'construct CL Q approximately 2.&rental units affordable to low income families, and purchased property in: the R3-(Medium Density)'zoning district. ew o. c 0 �a - c - m - E - - d _E - a 0 nt - o - T O N - Q - w _ d ' - t t� Q 1 .d E . Z • v t0 " Q Page 5 of 22 Adopted December 8,-2009 Packet:Pg.7f;7 �_ Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 20101hrough 2014, REDEVELOPMENT PLAN GOALS Adopted in 1:979 and amended in 1.981,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. c 3. Strengthen Economic Base: The strengthening of the economic base.of.the Project Area 00 and the community by the installation of needed site improvements. 0 4. Improve Parking and Open Space: The provision of adequate land-for.parking and open C spaces. - c is 5. Civic:and Cultural Enhancement: Enhance the role of the City by.strengthening civic,. a community and cultural functions. c w ig 6. Historical Preservation: Preserve artistically, architecturally, and historically worthwhile structures and sites. = :E 7: Design Criteria: The establishment:and implementation of performance criteria to assure high site.design standards and environmental quality and other design elements that c provide unity and integrity to the entire Project.. 8. Strengthening Existing Housing: Strengthen and upgrade existing residential uses.. N Co 9. Improve Utilities: Provide adequate streets,-curbs, gutters, drainage facilities, arid:street N lights and permit improved pedestrian and/or vehicular-circulation in the Project Area. a Cause the undergrounding-of unsightly overhead utility lines, _ - d E �o a w d E a Page 6 of 22. Adopted December 8, 2009 Packet Pg.76 -..<.�- . 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 2.01:072014 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 a 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. s Table 2: Projected:Tax Increment.Revenues ,0 201.0-20.14 (Without.Amendment) o 2009-10 201.0-11 2011-12 2012-13. 2013-14 a Tax Increment a Revenue $7,28$3333 $7:,457,636 $4,486,796 $0 $0 � R Non-Housing $5 830,656 $5,966,109: $3-589,437 $0 $0, L Revenue-(Gross) C Housing Set-Aside Revenue(Gross) $1,457,667 $1,491,527 $897,359, $0 $0 E. d The Agency is currently processing an amendment to the Redevelopment Plan that.would, among E 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; .0 tax:increment"revenues could be collected during the life of the.Implementation Plan-.to allow the - r .Agency to address the:' oals of the Redevelopment Plan.. N - o r Table 3.reflects-projected tax increment revenues-that could be collected during.the 2MO-2014- N Implementation Plan"period with the adoption of the amendment to the Redevelopment Plan. Q - - d Table 3: Projected Taxlncrement Revenues 2010-2104 sa (With Amendment) a 206940- - 2010-11 2011-12 2012-13 2013.-14 41 Tax Increment Revenue $7;371,325 $7;62„770 $7,891,908 $8,163,971, $8,444,195 E ... s Non-Housing $5 897,06b $6,102,216 $6,313,556 $6,532,794 $6,755,356 Revenue.(Gross) a Housing Set-Aside Revenue (Gross) :$;147,4265 $1,525,554 $1,578,382 $1,63,2794 $1,688,839 Page 7 of 22 Adopted December 8, 2009 Packet°Pg:Y.7� -Grand Terrace-Redevelopment Project Area Five-Year Implementation Plan. 2.010 through 2414 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 condit'ion(s) a particular project is expected to address and is not intended as a complete or:f Mal: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: c Table 4: Proposed 2010-2014 Non-housing Redevelopment Projects a� c . Project Description Preliminary Cost Estimate Goals Achieved �_ Mixed Use Specific Plan—Continue Land c assembly $2,000,000 1, 2, 3, 9 a a Barton Road Infrastructure Improvements - $500,000 1,.2,3, 5 a High School Storm and Signal Improvements $230,000 1, 5, 9 a, c Senior Center Commercial Kitchen Improvements $803-000 5 Grand Terrace Road Reconstruction $150,000 1, 3, 9 :E Grand Terrace Road-Landscaping $40,000 1,3 Land Assembly_on Barton Road $500,0. 00 1,2, 3,7 -Barton Road Utility Undergrounding $275,000 1, 2, 3;75 9 a Michigan Street Improvements $400,000 1, 2, 9 N Update of;the BRSP $150,000 1, 2, 4, 6, 9 c -N Commercial Improvement.Grant Projects $306,000 1,.2,3, 7 Q Public Message Sign Project $70,000 2, 3, 5 d Baseball.Par:k Project $175,000 4, 5 s Vista Grande Park-Project. $70,000 4,5 a.. c E s �o a Page 8 of 22 Adopted December 8,2009 - ;Packet-;Pg.78: 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%y 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 a moderate income housing. In.carrying out the annual.housing set-aside:requirements, the Agency a �—� may exercise any or.alf of.its powers, including the following: tM • Acquire real property or building sites subject to-the provisions of-H&S,Code § 33334.16. E + Improve real.property or building sites:with on-site or off-site improvements,-but only if the -0 improvements directly and specifically improve or increase the community's supply of low-or moderate income housing. a • Donate real property to private or public-persons or entities. a • Finarid0risurance premiums. 0 ` Construct buildings or structures.. :. • d • Acquire-buildings or structures:' d _ a Rehabilitate buildings or structures. • Provide subsidies to, or for the benefit.of, very low income households, as defined by H&S Code§ 50105,aower:income households; as defined by H&S Code §50079.5-, or persons and- N 'families-or low'or moderate-income, as defined by H&S Code § 50093,-to the extent those o households cannot obtain housing at affordable;costs on the open market:(Housing units. o 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 d pay financing or carrying:changes. ;.E • :Maintain the community's supply of mobile homes. Q • Preserve the availability to lower income households of affordable housing-units in housing E 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 .�Packet;P,g 79:: _s8rC° 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 directlyQL .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 W sponsor and are not planning and administrative costs for the purpose of this Section, but- are, instead, project costs. _ o J C. Q • a 0 c� c V E 0 N. 0 0 N , a . a+ _ d E s 0 en ' a E a Page 10 of 22: Adopted December 8, 2069 _Packet.Pg ;80 —f Grand Terrace.Redevelopment Project Area FiVe-Ydar Implementation Plan. 2010-through 2014 PROPOSED AFFORDABLE HOUSING PROGRAM The list ofpotential 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 d6hditibh(s) a _particular project is expected to address and:is not intended:as a-complete or fi.ndl.list:of needed improvements within the Project Area. Table 5:,Proppsed 2010-2014 Affordable Housing Program Project Description: Preliminary Cost Estimate Goals.AchieVed 0 Canal'Street Rental Housing $1,0001000 Neighborhood Improvement Grarit.Program $150,000 8 Purchase, Rehab and Rd-tell Program $400,000 8 .. ... ..... Home Improvement Loan Program $150,000 8 Mobile Home Park-Upgrade and/or 8 �0 Expansion Program $150,000' Senior Horne Repair Program $100,000 8 E -E O - E Page 11 of 22. Adopted December 8, 2009 - Grand Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014. HOUSING PROGRAWCOMPLIANCE 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: c Housing Production—based on the-number of housing units constructed:or substantially ot 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. 0 a) Replacement Housing—another'legal obligation for redevelopment.agencies is to ensure that any i housing-units destroyed or removed as a result of an Agency redevelopment project that housed C low to:moderate income households be:replaced within four years at the same household income. -- levels. �o - a Expenditures by Household Types—specific requirements on the amount of housing set-aside c funds an agency must:spend over a 10-year period on housing affordable to very low income r households, low income households, and housing for residents under the age of 65. E Household Income Limits-Area median' income is established by the Secretary of Housing and a)Urban Development, and:adopted by the-California_ Deparfrnent.of Housing. The Income limits are generally adjusted annually, and:are based on the Section 8 income 11,mits for the Riverside-San e Bernardino_Ontario, CA SMA. er Extremely low income households are defined as.families and persons whose income does not N exceed 30%.of area median income.. Very low income households are defined as families and � persons whose.income does riot'exceed.50% of area median income. While,low income N households are defined as families and:persons whose income does not exceed 80%of area a median income. Lastly, moderate income households are defined as families and persons whose income does:not exceed 120% of area median income. ca a c d E �o a Page 12 of 22 Adopted December 8,2009 LPLacket�Pg.'82- n 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. Moderate Household. Income Income Low Income Income a (80°l.0 of Area tM m Size .(30%of Area (50%of Area Median Income) (120%of Area Median Income) Median Income) Median Income) 1 14,000 .23,300 37,300' 54,200 C 2 . 16,000 26,650 42;650 64,900 J d 3 18,000' 29,950 47,950 69,650 2 CL 4 .20,000 33,300 53;300 77,400 Q 5 21,600 35,950 57,550 83,600 C R 6 23,200 38,650 61,850 89,800 0 7 24,800 41,300 86,100 96,000 0 8 26,400 43,95.0 70,350 1,02,150 E *2009 Median Income$64,500 for a household size of four persons: 2 CL Source: California.Department of Housing G ' et N O r 0 N Q C d t v • -Q .i+ C d E s 0 �a ' a Page 13 of 22. Adopted'December 8, 2009 ' �Packef Pg -83_ ' 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 Io ensure that the required number of very low, low and moderate income housing units will be produced or substantially rehabilitated.within the Project Area. a. Available.Low/Mod Housing.Funds W As of July 1, 2009, the Agency had approximately$998,000 available in its Low/Mod Housing c 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 0 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 Q. units c v _ Table 7: Projected Net Annual Low/Mod Housing Fund Revenue 2010-2014 �- 2 2010 2011 2012: 2013 .2014 Gross Set-aside $1,457,667 . $1,491,527 $897,359 $0 $0 d Estimated Debt Service $619,301 $619,268 $667,792 $0 $0 Estimated Residual for o Administration and $838,365 $872,259 $229,567 $0 $0 .1% Programs V 0 N Based on the:above income projection table, and the current balance of$99.8,000 in the Low/Mod o Housing Fund,the Agency anticipates that it will have approximately$2,038,191 in Low/Mbd- 'IN Housing Funds available during the planning period. This arnount is net of anticipated debt a 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 E 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. 43 a 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 E housing-obligations.witf :less than $3 Million for program funding, the Agency,is.stfll expected to meet its housing.obligation throughout the planning period and the life of the Redevelopment:Plan. a 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 ;Packeap.Pg.`84 -Grand Terrace Redevelopment Project Area Five-Year rlmplementation Plan 20.10-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. a Agency, by public or private:entities-or persons other than the Agency, shall-be available at " a -' 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,tiime periods as required by Redevelopment Law. The number of affordable units required is based on statutory thresholds, and the Agency is .0 -responsible for ensuring that the appropriate number of affordable units is created-during a ten-year period. a C. - Q Table 8:Actual�dnd Projected Housing Production Needs by Time Period io Actual/Assumed Housing Units Constructed and Substantially Required Affordable Units e Time Period Rehabilitated in Project Area Total Very L:ow E Plan Adoption to 1995 1,336 200 80 d a Previous 10-Year Period:' . E 1995 to 2004 123 18 7 G 10-Year Planning Period _ v 2005 to 2009 (Actual)2 172 26 10 c 2010 to 2014 (Forecast)3 45 7 3 c 2015 to 2017 (Forecast): 25 4 2 N Redevelopment Plan Duration a 1981-20.1 74 e 1,701 .255 102 E ... ..... . .. ... ... . .E Notes: All requi red:u nits based on 15 percent of:actual/assumed units developed by entities other than the Q 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. E a Affordable units:peoduced based on estimated affordable units.produced (or covenants:purchased) 0 during.each planning period inside or outside the Project Area. .0 a The.si.irplus affordable units.in a:ten year period.may be-applied against the unit production Q 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 incoine�dhits. 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 Packet. 78C c ~ -Grand Terrace Redevelopment Project Area Five-Year Implementation"Plan 20.10:through 2014 required. fnIotal, the Agency'6-iriclusionary 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 a Produced Total VL' Total VL Total VL Total VL c Plan Adoption to 1995 200 80 0 0 200 80 0 0 Previous 10 Year Period 18' 7 118 7 0 D 100 0 c 1995 to 20042 0 10-Year Planning.Peri'o& 0 2005 to 2009_(Actual) 26 10 113 29 0 0 87 .19. 2 2010 to 2014 (Projected): CL - 7 3 15 8 0 '0 8 5 c 2015 to 2017 4. 2 Redevelopment Plan 255 102 246 44 9 58 - o Duration (1981-201.7)5 Notes: d ' VL Very low income m :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 Q Apartments. p a 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 c be first produced during the following ten-year compliance period. c� 4 Affordable:units required based on actual total units.produced during the planning period and includes 113 units produced at,Blue Mountain Senior Apartments. - INC) 5 The Redevelopment Plan's effectiveness currently expires July 15,2017. Q c d s As shown in Table 9, the Agency has been:able to fulfilhthe 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. d E 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 Q Agency's affordable housing obligation during-the Five-Year planning period,,as well as provide a surplus of,1.3 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 -�Packet;-Pg;�s86_ 7- -Grand Terrace Redevelopment Project Area Five-Year Implementation Plan- 2010 through 2014 Replacement Housing 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. - a During the Implementation Plan period., the Agency does not anticipate that any Agency-assisted a 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-Requirements _ 0 J 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, a 2014, staff conservatively estimates that the.Project Area will generate approximately$1,940,181 a in:20-percent housing set aside revenue. -- . c Pursuant to•Section 33334.4(a) of the Law, Low/Mod-.Housing Fund.expenditures on low and very a low.income housing projects must beat least in proportion to'the.City's fair share of-the Regional c Housing Need Assessment (RHNA). The number of units required in each income category may o be adjusted for units not assisted by the Agency that feature 55 year (for-tenant-occupied units) or d 45 year(for.owner-occupied units).covenants. :E According-to the City's 20.06-2014 Draft Housing.Element, the current RHNA figures for the City E indicate a Citywide need for 80 very low income units, 55 low income units, and 63 moderate o income-units. Based on these figures and.the proportionality requirements'of C.RL, at.least 40% of Agency's Low/Mod Housing Fund expenditures must target very low income households, 20% c must target-low income households,and at least 32% must target moderate income households. N. 0 -T- Section 33334.4(b) requires that Low/Mod.Housing-Fund expenditures for senior housing also be N in-proportion to the community's population of seniors according to the most recent Census. Based a 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 E expended on senior housing projects, The remaining 89.2% must be expended on non-senior housing projects. Q 41 c d E s �a Page 17 of 22 Adopted December 8, 2009 Packet'Pg,87', Y Grand Terrace Terrace Redevelopment Project Area Five-Year Implementation Plan 2010 through 2014 Proportionality Expenditures based.on Household Income Groups 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- a Household Aside Expenditures over Implementation Plan period c co Total Population of the City 11,626 ... c Total:Population Under'Age 65' 1.0,381 89.3% 0 Total Population Over Age 65 1,245 10.70/. a Very Low Income Households 80 40%2 a Low Income Households 55 209/62 Moderate Income Households 63 326/2 M Total 198 100% n' c 0 Notes: �. ' Percentage of total households under the age of 65 based on the 2000-census data (www.censu's.govl. 0 2 Percentage of households in each income-level based on the.City of Grand Terrace Regional �- 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 Q Housing Needs Allocation(31%for Very low-income and 24%for Low-income Housing Units). p et - _ o N O Using the data in Table 10, Table 1.1 reflects the established thresholds for the use of Low/Mod. o Housing Funds for programs and capital expenditures based on the Agency's estimated N $2-938,191 in the Low/Mod Housing Fund-through the Implementation Plan planning period, and a based on the;City's RHNA allocation for affordable housing units. E s M Table 11: Low Mod Housing fund Expenditures Based on Income Category a Income Category RHNA Allocation Minimum Projected C Expenditure Required E t Very Low Income 80 $1,175,276 Q Low Income 55 $587,638 Moderate Income 63 $940,221 Above Moderate Income 131 N/A 'Total 829 $2,703,135 Page 18 of 22 Adopted December 8, 2009 .^•Packet.Pg.;88 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 a Period a Very.Low Low Moderate Total Expenditures 2002 - c through $4,125 0.7% $3,975 0.7% $600,204 98.7% $608.304 0 20004 2005 :$176,964 40.5% $170,529 39.5% $89,24.4 20.4% $436,7.38 Q 2006 $1,128,166 45.8% $1,087,132 44.2% $246,143 10.06% $2,461,430 C 2007 $4.10,543 45.8% $396,614 44.2% $89,5.73 10-.0% .$.895,730 C 2008 $1,501,742 45.8% $1,604,951 44^ $340,744 10.0% $3,407,436 a. 2009 . $1,171,313 45.8% $1,128,720 44.2% $255,559 10.0% $2,555,593 0 Total $4,452,843-' 43% $41290;921 41% $'1',621,467 160/6' $.10,365,231 Notes: E E 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- 'E income and 24%for Low-income Housing Units). Expenditures after 2006 subject to new RHNA numbers Q as shown in'prior table. �t 0 N Proportionality Expenditures based on Senior and Non-Senior Population 0 N Based:on the distribution of the City's senior and non-senior population, a minimum of$2,623,805 a (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. s ' R Table 13:'Proportionality Expenditure for Senior and Non=Senior Population Q Age Category of Total Population Minimum Projected d Expenditure Required E w R Under 65 89.3% $2;623,805 a 65 and Over 10.7% $314,386 Page 19 of 22 Adopted December 8, 2009 Packet:'F, 89, 9 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 2GO9). 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. ' a- Table 14: Proportionality Expenditures Based on Senior and Non-senior Population .Housing Units Assisted by Housing Set-Aside Fund SeVAside (July 2005 to June 2009) Expenditures Extremely Very Low Low Moderate Total 0 Low Family Projects $0 0 0 0 0 0 a (Non-Senior) 0% a v Senior Projects $0,820,189 0 55 53 1-2 120 C a Total $9,320,180 0 55 53 12 120 0 (10o%) •' .c m E m_ Housing Units Constructed Without Low/Mod Housing Funds. No other funding source was used by the Agency-to construct affordable'units featuring long-term o 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. c ' N However, because the Agency will not generate any revenue past 201'2,:it is likely that the Agency c will need to seek other funding sources to meets is affordable housing obligation. N . c E r . a r - c E s ea Page 20 of 22 Adopted December 8, 2009 Packet�Pg:;90�v 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, ' a rehabilitated, or-assisted by the Agency over the five=year period of the 2010-2014 Implementation Plan. d c c Table 15:2005-2009 Housing Production .J d Housing Units o Year Low/Mod.Income Very Low Income. Q 2005 .0 0 Q . e 2006 0 0 2007 0 0 c 0 2008 0 0 r 2009 65 '55 d -Total 65 55 d . . .... c. E Q �r Table 16:2010-2014 Production Goals' N 0 Housing Units c Year Low/Mod Income Very Low Income N 2010 0 0 2011 7 5 s 20.12 :8 3 ea 2618 2 1 Q 2014 2 - 1: c Total . 19 10 E 'Notes: eva ' The degree.to:which the stated,five-year housing production a 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,.2008 -Packet'Pgt91 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. „0 Notice of the public hearing to review the Redevelopment Plan and.Implementation .Plan shall be Q published pursuant to Section 6063 of the Government Code and posted in at least-four permanent a 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. n. Pursuant to Article 16.5,_this Implementation Plan may from time to time be amended after holding c a-public hearing on the proposed amendment. d E Q 0 0 - N O O N Q r ' C d :E s M Q _ ' s Q Page 22 of 22 Adopted December 8,.2009 �Packet�Pg,92�~ yyy 'yo'C' CITY OF GRAND TERRACE REDEVELOPMENT AGENCY o' 22975 Barton Rd, Grand Terrace, CA GR v re CAE a IL _ c� aM 0 J O Q. REPORT TO THE CITY COUNCIL a On the proposed Amendment No. 6 to the CD#, N - - Redevelopment Plan for the Grand- CMC Terrace Community Redevelopment- m Project E March 9-, 201.0 a d E cc . - a ROSENOW SPEVACEK GROUP INC. www.webrsg.com -PacketPgt,:93- TABLE OF CONTENTS INTRODUCTION 1 PLAN AMENDMENT AND ADOPTION PROCESS 2 CONTENTS OF THIS REPORT 2 SECTION A: REASONS FOR AMENDING THE REDEVELOPMENT PLAN 4 PROJECT AREA LOCATION 4 Prior Amendments 4 Land Use 6 a Urbanization Analysis 6, a PROJECT AREA HISTORY& BACKGROUND 7 ` c History 7 Current Conditions 7 c 0 REASONS FOR AMENDING THE-REDEVELOPMENT PLAN 7 J Increasing The Tax Increment Limit 8 Q. Increasing The Bonded Indebtedness Limit 9 C v Rescinding The Agency's Eminent Domain Authority 10 Extending.The Duration Of The Redevelopment Plan 10 Replacing The Description Of Land Uses 11 0l Amended And Restated Redevelopment Plan 11 m r c A DESCRIPTION OF SPECIFIC PROJECTS THE AGENCY MAY PURSUE&HOW POTENTIAL PROJECTS WILL ADDRESS CONTINUING REDEVELOPMENT OF THE PROJECT AREA 12 Non-Housing-Fund 12 Q PROJECTS COSTS&OUTCOMES 15 - •d SUMMARY 16 .E SECTION IS: 'DESCRIPTION OF THE BLIGHTING CONDITIONS PRESENT IN THE PROJECT AREA 17 Q INTRODUCTION 17 .FINDINGS&METHODOLOGY 20 BLIGHTING CONDITIONS 23 Lack Of Necessary Commercial Facilities 23 Inadequate Public Improvements 25. Crime Rates 51 SECTION C: :FIVE-YEAR IMPLEMENTATION PLAN. 54 ;Packet{Pg.',94� 8d TABLE OF CONTENTS- • SECTION D: EXPLANATION;OF WHY THE ELIMINATION OF BLIGHT IN THE PROJECT AREA CANNOT BE ACCOMPLISHED BY'PRIVATE ENTERPRISE ACTING ALONE OR THROUGH OTHER FINANCING.ALTERNATIVES OTHER THAN TAX INCREMENT FINANCING 55 SECTION f: PROPOSED METHOD OF:FINANCING, INCLUDING THE ECONOMIC FEASIBILITY OF THE PLAN AMENDMENT 58 INTRODUCTION 58 -FINANCIAL ASSISTANCE FROM CITY, STATE AND/OR THE FEDERAL GOVERNMENT 58 LEASE OR SALE OF AGENCY-OWNED PROPERTY 59 a PARTICIPATION IN DEVELOPMENT 59 a d a�. PROPERTY TAX INCREMENT 59 BONDED DEBT 60, c OTHER AVAILABLE SOURCES 60 J d TAX INCREMENT REVENUE PROJECTIONS 60 Economic Feasibility Analysis 64 a REASONS-FOR-THE ALLOCATION OF THE TAX INCREMENT 64 M' .%M •SUMMARY 66, R :N SECTION.F: c METHOD OF RELOCATION 68 `-1: Statutory Requirements 68 Analysis 68 -E Relocation.Policies.And Procedures 68 Methods For Assuring Availability Of:Relocation Housing 69 Q " c Relocation Payments 69 d _ E SECTION G: ANALYSIS.OF THE-ORELIMINARY PLAN. .. .... . . .. .... 70 cc SECTION H:. REPORT.OF THE.PLANNING COMMISSION SECTION 1: REPORT:OF THE PROJECT AREA COMMITTEE: 72 SECTION"J: STATEMENT OF CONFORMANCE TO.THE:GENERAL PLAN. 73 SECTION K:. ENVIRONMENTAL DOCUMENTATION 74 SUMMARY OF ENVIRONMENTAL IMPACTS 74 • Pacjiet?,Pg��95' • ._..; ___ TABLE OF CONTENTS SECTION L: t - REPORT OF THE COUNTY FISCAL OFFICER 75 SECTION M RELOCATION 76 Relocation 76 Traffic Circulation 76 Environmenta[Quality 76 Availability Of Community Facilities And Services 77 Effect On School Population And Quality Of Education 77 a Property Taices And Assessments 77 a a�. Low And Moderate Income Housing Program 77 SECTION N: 0 SUMMARY OF AGENCY'S.CONSULTATIONS,WITH AFFECTED TAXING ENTITIES J AND RESPONSE TO SAID ENTITIES CONCERNS REGARDING THE,PLAN AMENDMENT 79102 � ' a • a APPENDIX A: 80 �_ro FIVE-YEAR IMPLEMENTATION PLAN FOR THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA c mt c d E v R Q ' . c d E e� a � INTRODUCTION Tte. City of Grand Terrace Redevelopment Agency ("Agency),.is proposing Amendment No. 6 to the Redevelopment Plan for the Grand:Terrace Community Redevelopment Project ("Amendment No. 6"). If adopted.fallowing a public hearing,.Amendment No: 6 would modify time and financial limits.in,.as well as make modifications to, .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 to approximately$225 million (net of payments-made pursuant to fiscal mitigation agreements between the Agency and certain taxing entities); - 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; o 3. Extending, pursuant to California Comrrtunity-Redevelopment Law,.Health and Safety Code Section a 33000, et. seq. ("Redevelopment Lave') Sections 33333.6(a), 33333.6(b), and 33333.6(e)(2)(C), the c effectiveness of the Redevelopment Plan and:time limit to collect tax increment revenue by the following time frames: c a. Original Grand Terrace Community :Redevelopment Project Area ("Original Area',' — .0 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; a a b. Area added by the first amendment to the-Grand Terrace Community Redevelopment Project a Area ("Added Area"}=extending plan effectiveness from J.uly,15., 2017, to July 15,2024, and M time limit to collect tax increment from July 15, 2027,to July 15, 2034; N N N 4. Rescinding the Agency's eminent domain -authority within the -Grand Terrace Community r Redevelopment Project Area.("Project Area"), effective immediately-following the effectiveness of the mt ordinance.adoptirig Amendment No.-6; �. - c - d 5. Replacing the description of land uses in the Redevelopment Plan (as.previously contained in Section E. IV..'Uses Permitted -in:the Project Area, pp. 33-42) with language thatr directly refers to the City's General Plan, zoning ordinances, and other applicable land use policies and standards, as they exist Q today or are.hereafter amended; and .;; - c d 6. Amending and restating the-Redevelopment Plan to incorporate the prior amendments into a single E document. Amendment No. 6 is'beihd proposed because the-current time and financial limits will not allow the Agency to Q implement the.,projects and programs necessary to alleviate blight within the Project Area as.:described herein. It is:estimated that the current financial'liniits:of-the Redevelopment Plan,will only allow the Agency to collect tax:increment revenue:until fiscal yearr202143 (based on.conservative projections of assessed value growth) and all of'that revenue -is already pledged to outstanding--obligations. Without Amendment'No. 6,the.Agency will be unable to-fund the projects and=programs'that are.necessary to eliminate remaining blight. The increase in the bohded 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 bj 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 Section D of this document, it would take the full duration of the extension of the time limits to the Redevelopment Plan,-described above,.for the Agency to collect sufficient revenue:to.complete the proposed projects listed in Section A of this document. The Redevelopment Plan Will be changed by Amendment No. 6 to reflect the fact R:S,Gi 1 . Packet�Pg��:_.97, 8Cd` REPORT TO THE CITY COUNCIL Amendment No.6 t6 th'e Redevelopment'Plan for the Grand Terrace Community Redevelopment Project that the Agency does not wish to retain its eminent domain authority and .will rescind this authority via Amendment No. 6. Replacing the description of land uses in the Redevelopment Plan,.as described above, Will allow the Redevelopment Plan to stay.currbht with the Citys land use policies and standards without the need for further amendment'of the:Redevelopment Plan.. This document is the Report to Council ("Report") on Amendment No. 6. It provides background on the Project Area and- a comprehensive description of Amendment No. 6. This ;Report is one of several documents prepared as part of the plan amendment process required by the Redevelopment Law. It is intended :fo::prbvide the City of Grand Terrace Redevelopment Agency's Board ("Agency Board") and City Council with information concerning Amendment No. 6. Pursuant to-Sections 33354.6 and 3345711 of the Redevelopment Law, :this Report has been prepared to accompany:the proposed Amended and Restated Redevelopment Plan prepared in connection with Amendment Nb..-6 -("Amended and Restated Plan") submitted bythe Agency to the:City Council for consideration at the public hearing on Amendment:No. 6. a PLAN AMENDMENT AND-ADOPTION PROCESS a m Throughout.the plan amendment.prbcess, the City Council, the Agency Board, the Planning-Commission of t the .City of Grand Terrace ("Planning Commission"), the affected taxing agencies, State.agencies, and the ip community are given an opportunity to study and:comment on.Amendment No. 6. a� - c The Agency Board reviewed.arnd adopted the Preliminary Report and received the draft text of the Amended .0 and Restated Plan on January 12,.20.10. The Preliminary Report and draft Amended and Restated:Plan were _> sent to affected taxing entities, the California Department of Housing and Community'Development, and the o :California Department .of: Finance. (The Preliminary Report was drafted to also act as the blight report CL a required by Section 33451.5(c) of:the Redevelopment Law, and was transmitted to these State Departments a on January 21,.2010). The.draft Amended and Restated,Redevelopment Plan was also transmifted to the M Planning Commission. `- Also, a Draft Environmental Impact.Report has been prepared and circulated for'review in accordance with ,o the requirements of the California.Environmental Quality Act. The Program.Environmental Impact.Report for r� the .City of Grand Terrace General Plan Update and Amendment No,"6 to the Redevelopment Plan for the m .Grand Terrace Community Redevelopment.Project was circulated on,January 22 for a.45-day public review period that expires on March 7,.2010.. E Amendment No. 6 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 Q :taxing agencies will receive notice of this public hearing by mail and.through the publication of public notices c in local newspapers.An ordinance:adopting Amendment No. 6 is anticipated to be'considered in May 2010. 0) s CONTENTS OF THIS.REP,ORT The contents. of this Report are presented in fourteen sections, which .generally correspond to the subdivisions presented in Section-33352 of Redeveloprrient-Law.The sections are follows: Section A: Reasons for the Plan Amendment, Including a Description of the Proposed Projects and How ' Such-Projects will Improve or Alleviate Blight in the:Project Area Section B: -A Description of the:Physical and Economic Blighting Conditions Existing in the Project.Area Section C: Five=Year Implementation.Plan: Section D: Explanation of-Why the Elimination of Blight in the Project Area Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing Section E: Proposed Method of Financing, Including the Economic Feasibilityrof the Plan Amendment RSG 2 _~ �Packet`Pg. 98Y,. REPORT TO THE CITY COUNCIL Amendment No.6 td the Redevelopment Plan for the Grand Terrace Community.Redevelopment Project Section F: Method of Relocation Section G: Analysis of the Preliminary Plan Section H:. Report of the-Planning Commission Section I: Report of Community Outreach Efforts Section J: Statenient-of Conformance to.the General Plan. Section-K: Environmental Documentation Section L: Report of:the County Fiscal Officer Section M: Neighborhood Impact Report Section N:. Summary of the Agency's Consultations:with Affected Taxing :Entities and a Response to Said Entities' Concerns Regarding the Plan I' • a A00endix A: Five-Year Implementation Plan c ev a� . . c 0 J G1 O C. C. Q M r r O N N O T w C d • E ' Z • v Q d E V cc Q 3 Packet'Pg �9.9 �- SECTION A Reasons for Amending the Redevelopment Plan Redevelopment Law Section 33457.1 requires that'when a redevelopment plan is amended, the reports and information required by Section 33352, to the extent warranted by the amendment, shall be prepared and made available prior to the hearing.` Section 33352 of the Redevelopment Law requires this Report describe the reasons for Amendment No. 6, a description of the specific.projects proposed by the Agency, and: a description of how these projects will improve or alleviate the persisting blighting conditions described in Section B of this Report. PROJECT AREA LOCATION The Project Area includes the entire city limits of the City of Grand Terrace. A map of the Project Area is provided as Exhibit A-1 on the following page. According to the City's General Plan, the Project Area is n approximately 2,255 acres and is comprised,of two parts: the 640-acre Original Area composed of seven non- a contiguous areas established by City Council on September 27, 1979, by Ordinance No. 25, and the 1,616 acre Added Area which added the remainder of the City into the Project Area by an amendment adopted on July-15, 1981 by Ordinance No. 52. � aM c PRIOR AMENDMENTS J The Redevelopment Plan for the Grand Terrace Community Redevelopment Project has previously been i amended on five occasions since its adoption. Amendment No. 1 was adopted :on March 20, 1980 by a Ordinance No. 31, to authorize .the Agency to collect tax increment revenue within the Project Area. a Amendment.No..2 was adopted on July 15, 1981 by Ordinance No. 52 which:added the rest of the City limits (approximately 1,615 acres) to the original Project Area boundaries, and adopted a new, amended r- Redevelopment Plan applicable to both the Original and Added Areas. Amendment No. 3 was adopted on July 22, 1999 by Ordinance No. 187 to authorize the use of eminent domain to acquire certain non-residential c property for a 12 year period. To clarify the language and original intent of*the Agency to make the tax increment limit het.of.pass through payments, the'City Council adopted Amendment No. 4 by Ordinance No. m 202 on September 12, 2002. Most recently, Amendment No. 5 was adopted on July 22, 20.04, by Ordinance No.212,which.rescinded'the previous time limitto.incur debt making it essentially the same as the duration of E the Redevelopment Plan and is dependent on the Agency's ability to collect tax increment to repay any incurred debt: Amendment No. 5 also extended the.time limit of the effectiveness of the Redevelopment Plan cc .(to July 15, 2017), and extended the time limit 1for payment of indebtedness and receipt of taxes (to July 15, a 2027)for both the Original.and the Added Areas. d The current time and financial lirhits:as contained in the existing Redevelopment Plan are shown on Table A-1 on the following page. a RSG 4 Packet Pg, 1X REPORT TO THE CITY COUNCIL Amendment No.6 to'the Redevelopment Plan for the Grand Terrace Community.Redevelopment Project, GRANDT IZFIACE:GOMIVIUWY:RED VELOI�IIA NTPRQJ CTAREA EX0I0ITA-1 r .�� 4CENtEQ' .. ;. �• G CL s17/ R rl o GwiG7T«rvie'RedLvd_o"pmentProjedAma n - g• C.tu� 1� -- - "" m OngirialNaa -j >- d - F�� C NAN • 'Note:T eGrantlTerraceCommund7CRadewlopngnt;ProJedArogbounda. co , dwsthaenuro,Clty6ounda,y. •, .,- _, _. ,• „• _- ` :b a.fis.025 U b s a iRSG ' a 7r � . Sauice :City'G!S-DepBrfrrieritend Mefr_csCen O RS64 :� s ' :Packet=Pg;,101' , REPORT 'TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Current Time and Financial Limits Table A 1 Grand Terrace CommunityRe'develooment Project Area Type Original Area Added Area Plan Duration 7/15/2017' Establish Indebtedness Eliminated' Receive Tax Increment/Repay Indebtedness 7/15/2027' Eminent Domain 8/22/2011 Amount of Bonded Indebtedness $15 million Amount of Net Tax:Increm ent(i.e.,Tax Increment Cap) $70 million... IL 'City Council and Redevelopm ent Agency approved Ordinance No.212 on July22,2004,in connection with Amendment No.5. d Pursuantto SB 1045,(Statutes of2003):the City Council mayextend byone yearthe term of the Redevelopmentand period to 0 collect tax increment in return form aking 2003-2004 ERAF payment. Ordinance No.212 also eliminated the time limitto incur e debt. c LAND USE J The Project Area is primarily residential and undeveloped property. Table A 2 shows the types of land uses c within the Project Area by acreage. a c. a v Land Uses Within Project Area TableA2 r� Grand Terrace Community Redevelopment Project Area N O Land Use Type Acres %of Total ml r d Single Family Residential 838.8 37.2% E Multiple Family Residential 113.1 5.0% 0 Commercial 67.2 3.0% a Industrial 1440 6.4% Institutional 32.2 1.4% c Public 103.3 4.6% m E Open Space/Vacant 604.0 26.8% Streets and Railroad Right-of-Way 353.0 15.6% a Total 2,255.6 100.0% Source:Administrative Draft Grand Terrace General Plan,1/17/2008. URBANIZATION ANALYSIS' Because.Amendment No. 6 is not 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. RSG s F. :Packet,.Pg.1t02 REPORT TO THE CITY COU:NCIL Amendment No.6 to'the Redevelopment Plan for the Grand Terrace Community Redevelopment Project PROJECT AREA HISTORY&BACKGROUND HISTORY 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, 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 64.0-acre Project IArea established by City IL Council Ordinance No. 25 on September 2Z; 1979, and the remainder of the City which was placed into the a Project Area-by an amendment to.the Redevelopment Plan, enacted by Ordinance No. 52, on July 15, 1981. 0 As the entire City limits are located within the Project Area, the Agency- can embark on infrastructure, C economic development, affordable housing, and other initiatives to mitigate blight in the community. a� Redevelopment in the Project Area has assisted in the development of much of the City's public o 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 c 'funding for the renovation of Rollins Park, realignment and a traffic signal for the intersection of Iowa Avenue a and Main Street, city street,sign replacement, and acquisition of 60 acres of. land for construction of a high Q school and.commercial retail development. A description of additional Agency accomplishments is included in M the Implementation Plan in Section C of this Report. c N N CURRENT CONDITIONS Despite the Agency's efforts, the Project Area continues to suffer from physical and economic blighting M conditions, including: -E ■ Lack of Necessary Commercial Facilities �o ■ Inadequate Public Improvements a c ■ Obsolete Design or Construction °7 E s ■ Deteriorated and Dilapidated Buildings d Q ■ High:Crime Rate These blighting conditions are described in detail in Section B of this Report. Redevelopment is necessary to alleviate these blighting conditions. REASONS FOR AMENDING THE.REDEVELOPMENT PLAN Further redevelopment:is necessary to address significant remaining blight within the Project Area. A lack of. necessary commercial facilities in the Project Area force residents to travel outside the City to purchase needed goods and services. For example, there is currently only one grocery store, Stater Bros. market, to serve the entire City/Project Area. The lack of necessary businesses also has a negative effect on general. -fund revenues as very little sales tax is generated by existing businesses and the small amount of sales tax currently collected is declining, according to the City's current budget. Vacant and undeveloped property in the southwestern portion of the Project Area remains due to inadequate public infrastructure and physical RS 7 -,Packet_Pg'1.03. . -._- REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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. Additionally, it.is estimated that the Agency will reach the current tax increment limit contained in the existing Redevelopment Plan in fiscal year 2012-13. After that point, the Agency will have no ability to collect additional-tax increment without an amendment to the Redevelopment Plan. As shown in Exhibit A-2 on the following page, the costs:for projects and programs to alleviate and/or alleviate blighting conditions over the life of the-Redevelopment ar-e estimated at$ .9 million. However, the Agency may only collect $7.6 million in tax increment between fiscal 30 cal years 2009-10 and 201243, leaving a deficit of $23.3 million. Amendment No. 6 will raise the existing-tax increment limit to$225 million and enable the Agency to collect tax increment a revenues until fiscal year'2033-34. Amendment No. 6 is necessary to secure the financial as well as the- IL administrative tools that will enable the Agency to implement proposed projects necessary for the elimination •0 of blight and,carrying out the established goals of the Redevelopment Plan. c e� INCREASING THE TAKINCREMENT LIMIT c 0 The current limitation on the amount of tax increment revenue that may be allocated to the Agency leaves -i virtually no- revenue for additional projects and programs. The Agency will be .unable to undertake any c redevelopment activities unless this limit is increased. The cost of proposed projects, which total 102 approximately $30.9 million (when costs fdr ongoing projects and programs are- included), exceeds the a available revenue (estimated at $7.6 million) within--the Redevelopment Plan's current financial limits, by Q approximately-$23.3.million (not accounting for inflation, financing or administration costs). When financing =' arid,administration costs are applied,the total.cost of remaining projects is estimated at$44 million (see Table A-4 of .this .Report). The existing Redevelopment Plan permits the Agency to collect $70 million in tax c 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 m increment (July 15, 2027 for both the Original and Added Areas, :pursuant to'Amendment No. 5). As described in Section E of1his Report, it is estimated.that cumulative tax increment for the Project Area will E reach this $70 million cap in fiscal year 2012-13, which is approximately 14:years-prior to the time limit to collect tax increment pursuant to the existing Redevelopment Plan. Q Exhibit A-2 on the following page illustrates.this shortfall in revenue available to fund proposed projects and 3 on-going programs based on current Redevelopment Plan_ limits and the estimated cost of proposed projects E and programs that will help eliminate:blight. V Q RS:G s. ;Packet.+Pg,u1:04V- REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment'Plan for the Grand Terrace Community Redevelopment Project 7f g-A- geincy Faces a ±$27 Million EXn�blt.arz -y g ,.. Revenlue,S:ho;rtfall of Proposed 1:�.' e l i i l e e DLfes - uffent- t irrits a c 0 A more detailed financial analysis is,included in,Section,E;of this Report. Increasing the limit on the amount of c tax increment the Agency may collect to $225 million, net of payments pursuant to fiscal mitigation a agreements with affected taxing, agencies, will ensure that sufficient funding may be received to fund Q proposed.projects. - M As described in Sections D and E of this Report, the Agency-will reach its current$70 million tax increment c i.- limit in fiscal year 2012-0. Without Amendment No. 6, the Agency can no longer collect tax increment from N this point on; It is important to note that the City-s current revenue sources are not adequate to maintain a o constant level,of City-wide basic services much less fund-public infrastructure, developmental remediation, m revitalization or affordable housing programs'in the Project Area. In,fact, a portion of annual redevelopment .. revenues are currently used to assist with :funding the Ciity's community enhancement programs, housing programs, infrastructure projects,. and economic development, planning and public works projects and ,E programs. According to the Agency's fiscal year 2009-10 Statement of: Indebtedness, redevelopment revenues are contributing to approximately'$800,000 to general'fund costs. These costs are primarily for Q infrastructure improvements and staff time as ,City staff spends :a.significant amount .of time on economic development and other programs,that are related:to redevelopment. If Amendment No. 6 is not.adopted, d the tax increment revenues, which.act as an ongoiria.funding source that.contributes to�the costs of E many Citiproiects and programs that assist in blight remediation,will cease.to be collected, having a .critical_and sign nificant.impact on current :City staffing IeVels. and the continuation of many 'City Q services. INCREASING THE BONDED INDEBTEDNESS LIMIT The Redevelopment'Law requires:that-in order for an agency'to collect tax increment revenues, the agency must establish debt to justify to collection of such revenues.. Bonds are an economical method for the.Agency to.fund needed projects.because the Agency can receive a dump-sum of revenues at a.low interest rate to fund needed projects. In addition, bonded debt';does not represent an additional burden on taxpayers or the Cigs' general fund. Without issuing bonds, redevelopment projects and programs would take decades to fund as the stream of tax increment,revenue would have to be amassed prior to,commencing these projects and programs. 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 .' RAG s �Packet�,Pg';1;05:� REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project indebtedness limit is $15 million. Amendment No. 6 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 THE AGENCY'S EMINENT DOMAIN AUTHORITY As stated previously, Amendment.No. 3, adopted on July 22, 1999 by Ordinance No. 187, authorized the Agency's use of eminent domain to. acquire certain non:residential property for a 12 year period: The Agency's eminent domain authority is due to expire on August 22, 2011. Amendment No. 6 would:also a rescind and eliminate-the-current authority of the Agency to commence eminent domain within the Project a Area. The Agency does not foresee the need to:retain eminent domain in the Project Area as there are no plans to condemn property for redevelopment purposes at this time. The rescinding of this authority would be cc effective immediately following the effectiveness of the ordinance adopting Amendment No. 6. EXTENDING THE DURATION OF-THE REDEVELOPMENT PLAN d The Agency is proposing to extend the effectiveness of'theRedevelopment Plan in the Original and Added c Areas by the following time:periods: o, CL Q • Original.Area — Extend-Plan effectiveness by five years from July 1:5, 2017 to September 27,.2022, and the duration to collect tax increment revenue'within the Original Area to September 27,2032;and ' n • Added Area—Extend Plan effectiveness by seven.years from July 15, 2017 to July 15, 2024, and the Q duration to collect tax increment revenue within the:Added Area to July 15,2034. m� - c m The existing Redevelopment Plan duration for both the Original and Added Areas is July 15, 2017, as E established by.Amendment No. 2, adopted on July 15, 1981, by Ordinance No. 52. This amendmerit:added 0 the rest of the City limits (approximately 1;615 acres)to the original Project Area boundaries, and adopted a Q new, amended Redevelopment Plan applicable to both the Original and Added Areas. In 1993, the Redevelopment Law Was amended to allow existing redevelopment plans to have duration of 40 years from the date the project area (or added area) was adopted, which would have allowed,the Agency to amend the E then-Redevelopment Plan to allow' 'for a plan duration of September 27, 2019, for the Original Area and July 15, 2021. 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 Q increase in financial limits as proposed now with Amendment No. 6. Additionally, further changes to Section 333A6 of the Redevelopment Law in 2003 state that when a redevelopment agency makes payments to the county auditor for the::county's Educational Revenue Augmentation Fund, the redevelopment agency may amend a redevelopment plan to extend the time limit for the effectiveness of the redevelopment plan by one year for each annual payment that is made. The Agency has made 3 such.annual payments, but has only taken advantage of the first one-year extension With Amehdment.No. 5, 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 Areas. 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'thb effectiveness of a redevelopment plan. With the extensions to the Plan effectiveness described above,Amendment No. 6 establishes longer periods to collect tax_increment RSG - 10 Packet:Pg 106. _!0- REPORT TO THE CITY COUNCIL Amendment No.-6 to the-Redevelopment Plan for the Grand Terrace Community Redevelopment Project revenue for the.Original and Added Areas, to September 27, 2032 and July 14, 2034, respectively. Exhibit A- 3 :below provides a visual representation of the methodology used to calculate the proposed amended Redevelopment Plan effectiveness time limits. Grand Terrace Project Area. Etnibifa-s Redevelopment Plan Duration Timeline - 43YEARDURATION OriginalArea , 43 YEAR DURATION a a Added Area 41 - C o O J - d ®Time Limit per AmendmentNo.2,7/15/p8Y IJ Time limitallowedunderCRLSection33333.6forERAFpaymerds 0 9 Plan Duration after Amendment No.61or Original X6 13 Plan Duration afterArdendmairt Nn.6 for Adged Mea L Q. ' a - M Without the extension of the Redevelopment Plan duration described above, the-Agency will not be o able to undertake any.of the proiects planned to eliminate bli_ght`in the Prolecf Area (as described _N later in this Section A) that have not already been completed. Additionally, the Agency's. ongoing C) pto--grams will cease and any City programs that rely on doericy funding (suc/i"as code'enforcemeht m and economic.development) will loselhat-fundinp..Aii bli_ght in the Froiect Area:as-of the expiration = date will remain until the Cify can generate the necessary funds through other revenue sources. £ .s REPLACING THE DESCRIPTION-OFLAND USES Tbq'Agency needs to modify the description:of land uses in the Redevelopment Plan to-eliminate any conflicts„ B 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 E Project Area and the development standards associated with each land use. Any changes to the City's 0 General Plan, zoning ordinance, or other applicable land use policies and standards could result in a conflict a 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. 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. ,;Packet Pg. 1107�, REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Table A-3 below shows the current time and financial limits of the existing Redevelopment Plan, as .well as the limits proposed as part of Amendment No. 6. Current and:Proposed Time and.Financial Limits Table A-3 Grand Terrace Community Redevelopment Project Area Current Limit Proposed L mit77_ Type Original Area Added Area Original Area_ Added:Area Plan Duration 7/16/20171 9/27/2022 7/15_'/20.2.4. Establish Indebtedness Eliminated Eliminated Receive Tax lncrement/RepayIndebtedness 7/15/2027 9/27/20,32 71/15/2034:- IL Eminent Domain 8/22/2011 Eliminated p. Amount of Bonded Indebtedness $15 million $76_million Amount of Net Tax Increment(i.e.,Tax Increment Cap) $70 million _$225 m illiori e City Council and Redevelopment Agencyapproved Ordinance No.212 on July22,2004,in connection with Amendment No.5. Pursuant to SB 1045,(Statutes of2003)the City Council may extend by one yearthe term of the Redevelopment J and period to'collecttaxincrement in return for making 2003-2004 ERAF payment. Ordinance No.212 also eliminated the time limit to incur debt. o Q. Q a A DESCRIPTION OF SPECIFIC PROJECTS THE AGENCY MAY PURSUE &HOW POTENTIAL PROJECTS WILL ADDRESS CONTINUING REDEVELOPMENT OF THE PROJECT AREA The following 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 2010 to 2014 'o are also identified in the Five Year Implementation Plan contained in Section C of this Report. m NON-HOUSING FUND Proposed projects and programs require $25.3 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 Q 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 E administrative costs are added. t �s Q Lack of Necessary Commercial Facilities The following project is proposed io address this condition of blight in the Project Area. Commercial and Economic Development Program ($3 million) In order to address the lack of necessary commercial facilities in the Project Area, the Agency will implement a Commercial and Economic Development Program to attract needed businesses,to the Project Area, such as grocery and drug stores., Specific Agency activities may include marketing existing properties to bring new businesses to Grand Terrace, completing site improvements needed to attract appropriate businesses to the Project Area and financial assistance to developers for site preparation. The majority of these activities will be focused on the planned Town Center project along Barton Road. i RSG . .. . . 12 . Packet.Pg. 1,0,8 REPORT'TO THE CITY .COUNCIL Amendment No 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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 ($7.4 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. In addition to the infrastructure needs, the wetland areas also act as a physical constrain to redeveloping the property. The wetlands areas will ne"ed to be retained onsite-which limits the development area and potential of the Southwest Commercial Site: Without redevelopment IL investment, the residual value of the land after development,would be much less than half the cost of a 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-3 and Exhibit B-4 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. c 0 :J d Main Street and Michigan"Street Widening and Improvements ($4.6 million) c When the Grand Terrace:High School at the Ray Abril Jr. Educational Complex on Main Street near Taylor a Street is complete the vehicle and traffic volume will increase significantly. To accommodate the increase in Q vehicular traffic and to provide safe and adequate pedestrian routes to the school site,the City plans tb widen Michigan Street from Barton Road to Main Street to its full cross-section, widen Main Street from Michigan o J 1 Street to Taylor Street to its full cross section;and install a traffic signal at the intersection,of Main Street and N Michigan Street. The $4.6 million project cost is-the funding gap remaining after the Colton Joint"Unified o School District :("CJUSD") contribution to mitigate the infrastructure impact.-of the new school. Without m redevelopment contribution,the City lacks the funds necessary to finance these improvements. _ m E Barton_Road/Union Pacific Overhead-Bridge ($500,000). This bridge immediately adjacent to the Project Area, while unsafe, is 'currently in use. Although the Q improvements are currently partially funded,.this project requires a redevelopment contribution of$500,000 to close the funding gap. Additional Public Facilities and Infrastructure($5 million) E Additional public improvement projects may be implemented that would aid current revitalization efforts and r. eliminate deficiencies in the existing infrastructure-systems in the Project Area. These improvements may 4 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: 13 Pw '•�,___ REPORT TO THE CITY .COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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 tirtie. 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 a.remaining duration of the Redevelopment Plan. a. IL Home Improvement Loan Program ($11 million) c c� 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 0 the Redevelopment Plan. Commercial Improvement Grant Program (cost based on level of participation each year) 0a Q. This ongoing program is available to property owners-and/or business owners as`an economic incentive to a rehabilitate existing commercial structures. Implementation of the program is expected to eliminate blight, eh yield, a stronger commercial presence, and: increase the likelihood of new business development. The r program focuses on the;exterior improvement of-commercial buildings, including new paint/stucco, new doors and windows, decorative awnings, signage, landscaping,and lighting. Q Commercial and Economic Development Program ($4.5 million) , ml c 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 M programs will address and/or eliminate blighting conditions such as deterioration and dilapidation. In addition, Q rehabilitating and modernizing the building, stock in this area will .also positively effect property values to c enhance the economic viability of commercial properties.. d E Neighborhood'improvement Grant Program (cost based on level of participation each year) cc The ongoing program.grants up to $1,000,p.er household to purchase.landscaping.and.irrigation materials for Q front yard, improvements and exterior paint. The goal -of this program is to reduce blight and property depreciation caused by deteriorated,exterior paint, poor front yard maintenance and the lack of front yard landscaping. Though this.program would not result in substantial rehabilitation to assist in meeting longterm affordable housing production goals,.these'.efforts are critical to reducing the number of deteriorating and/or' at-risk housing:units in the City. Crime Rates Town Center Land Assembly($wo,'000) The City has a 20-acre retail project planned on Barton Road ihatwould 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 Packgt Pg.4i REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopmerit'Plan for the Grand Terrace Community.Redevelopment Project 14 vacant or under-utilized .parcbls.-ihto 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, Amendment No. 6 would give the Agency the ability to fund additional housing projects to meet its inclusionary housing requirements. PROJECTS COSTS &OUTCOMES As shown previously in Exhibit A-2, Agency resources under current Redevelopment Plan limits are n significantly less than -the-costs for projects and programs to remediate blight in the. Project Area. It is a estimated that the Agency will collect approximately $7.6 million in tax increment revenue until fiscal year d 201243 when it.is estimated that the cumulative tax increment limit of$70 million will be reached. However, I as shown in Table A-4 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 is conditions is.estimated at$44 million, and the total housing costs are$5:6 million, "re'sultingIn a grand total of J $49.6 million.in project and program.costs. After applying the$7.6 million in.tax increment revenues that may be .collected until. fiscal year 2012-93,. the Agency will be :left with a $42 ffiillionr shortfall for funding the c remaining project costs without Amendment No. 6. a CL Q v Unfunded Projects. TableA-4 co Grarid Terrace Comm unity Redevelopment ProjectArea "' %_ O Direct Financing Administrative Total N Project Cost Interest' cost Cost C14 Non-HousingFupds $ 25,264,936 $ 17,010,890 $ 1,780,600- $ 44,055,826 �) Public Infrastructure m Southwest Commercial Site Improvements 7,400,000 7,071,943 740,000 15,211,943 = Main Street Widening and Improvements 1,600;000 1,529,069 1-60,000 3,289,069 d Michigan Street Widening and Improvements 3,000,000 2,867,004 300,0.00 6,167,004 E Barton Road/Union Pacific Overhead Bridge Improvements 500,000 417,834 50,060 1,627,834 0 Additional-Public lnfrastructure Projects 5,000,000 4,778,340 500,000 10,278,340. .ascellaneous Revitalization Programs Q Town Center Land Assembly ' 300;000 286,70.0 30,000 616,700 C Highgrove Generation Station Demolition 2 - a1 Commercial Improvement Grant Program 2 - - - _ Additional Commercial and E6onomic Development Programs 7,464,936 - 7,464,936 v tD Housing Funds r$ 5,6161-00d 5,616,000 Q Ongoing Programs Purchase/Rehabilita'te/Resale Program 2,496,000 Home Improvement Loan Program 3,120,000 .Neighborhood Improvement Grant Program 2 Total Costs(Housing and Non-Housing 49,671,826 Total Revenues through 2012713(without Amendment No.6) (7,635,872) Total Unfunded Projects $ 42,035,954 $ 42,035,954 1 Kasares 25 year Bawtlrg W l 6A srvu,d pace wp rate. 2 Cosb m hedetmrined , Q., RSO 15 �:Packet.Pg.,111, REPORT TO THE CITY .COUNCIL Amendment No.6 td-the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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, and Improving commercial and resideritial:properties . IL a d c �a C 0 J O a a Q M O r I m C as E cc Q C d E t C1 c0 Q 16 �.Packet,�Pg.,1:12� 13:Cd SECTION B- Description of the Blighting Conditions Present in the Project Area INTRODUCTION Over the past 30 years, the Agency has implemented a number of.projects and.programs to alleviate, and address blighting conditions identified at the time the redevelopment plans for the Original:and Added Areas were:adopted. These projects have remediated infrastructure deficiencies, improved or-removed dilapidated, deteriorated, and substandard structures, and implemented housing programs to improve, preserve and increase.the supply of affordable housing in the Project Area. During the last five years, specific projects that have been completed in.the Project Area included the following: • High School and Public Infrastructure Improvements. Through a partnership with the CJUSD, property,was assembled .for the new Grand Terrace High School at the Ray Abril Jr. Educational Complex. A water line was also relocated and water line easements were transferred to the City of a Riverside for maintenance. . a d • Property Acquisition for Project Site Assembly. Property acquisition for both the freeway-oriented = 100=8cre project (former Outdoor Adventure Center) and the Town Square commercial project have been underway in partnership with private development partners. 0 • Commercial Improvement Grant Program. This program is available, to property,owners and/or business owners as an economic incentive 6rehabilitate. existing commercial. structures. Two > shopping center rehabilitation projects are anticipated for fiscal year 2009-10. Q • Design plans to underground overhead utility lines along a segment of Barton Road. Q M Design of community signs to strengthen-civic and cultural.functions. N N - N • Property acquisition along.Barton Road and demolished abandoned on-site structures. • Property acquisition along Vista Grande Avenue and demolished abandoned on-site structures fora future park facility: E _ _ s • Updated the Barton Road Specific Plan design policies. Q • Initiated design to reconstruct Grand Terrace Road,west of the 1-215. d • Preliminary design activities:for a new baseball field. t ea Blue Mountain. Senior Villas and. Senior Center. This project includes the construction of 120 Q 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. Forty-five grants of up to $1,000 per household have been made to purchase landscaping and irrigation materials for front yard improvements and exterior paint. 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. ~ -,RSG 17 ;Packet_`Pg11;3 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project As a result of the previous projects and programs, including those recent projects -shown above, many 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 much of the Project Area, physical and economic blighting conditions still exist—primarily concentrated in the western portion of the Project Area. A lack of necessary commercial facilities, such as grocery stores; plagues the Project Area and the City. 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 IL unsafe for use. In addition, certain hotspots of crime in the Project Area are a burden on the City by d demanding a disproportionately large,portion of public safety resources. The blighting conditions.remaining in d the Project Area include: r_ • Lack of Necessary Commercial Facilities = 0 J • Inadequate Public Improvements 0 • Obsolete Design or Construction a Q v • Deteriorated and Dilapidated Buildings r� • High Crime Rates r 0 ml The Redevelopment Plan was adopted in 1979 to address the blighting conditions present in the Project Area as defined by Redevelopment Law at that time. The Redevelopment Plan was amended in 1981 to add the m remainder of the City to the Project Area.The definition of a blighted area at the time the Redevelopment Plan E was adopted was as follows (Redevelopment Law Section numbers provided): 0 33031. A blighted area is characterized by the existence of buildings and structures, used or intended to Q 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: ea (a). Defective design and character of physical construction. a (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. .. R$105 18 ' Packet�Pg:11,4 REPORT TO THE CITY COUNCIL Amendment No.6 to the.Redevelopment'Plan for the Grand Terrace Community Redevelopment Project 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. (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. a a (d) A ,prevalence of depreciated values, impaired investments, and social and economic d maladjustment. Article 12 of the Redevelopment Law, which grants the Agency authority to amend its:Redevelopment Plan, c requires a description of the blight remaining in the Project Area. Blight findings may be made pursuant to the J 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: c 33031. Physical and economic blight. a v This subdivision describes physical conditions that cause blight: 0 N 1. Buildings in which it is unsafe or unhealthy for persons.to live or work. These conditions may be N caused by serious building code violations, serious dilapidation and deterioration caused by long- o term neglect, construction that is vulnerable to serious damage from seismic or geologic hazards, m and faulty or inadequate water or sewer utilities. _ d 2. Conditions that.prevent or substantially hinder the viable use or capacity of buildings or lots. ..E 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. Q 3. Adjacent or nearby incompatible land uses that prevent the development of those.parcels or other d portions of the project area. _ 4. The existence of subdivided lots that are in multiple ownership and whose physical development Q has been impaired by their irregular shapes and inadequate sizes, given present general plan and:zoning standards and present market conditions. 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. 19- PPacket REPORT TO THE CITY COUNCIL Amendment No 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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 Chapter1 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 a Project Area shall be conclusively presumed to:be a blighted area as defined by Section 33031 or Section a 33032. CD c FINDINGS &METHODOLOGY a� Blighting conditions that were originally identified at the time of the adoption of the Redevelopment Plan for c the Original and Added Areas continue to persist in the Project Area at the time of this Amendment No. 6. —i Pursuant to the Redevelopment Law, the location of these conditions is illustrated in Exhibit B'-1 on the > following page. Exhibit BA also depicts parcels within the Project Area that are no longer blighted and a necessary and essential parcels for the elimination of the remaining blight. Parcels identified as necessary and essential for the elimination of remaining blight include non-blighted parcels already owned by the a Agency or private entities partnering with the Agency on projects that are slated for redevelopment, or vacant parcels within the Project Area. Inclusion of these vacant parcels is necessary and appropriate because they are negatively impacted by the economic blighting conditions described later in this-Section,.and are located c adjacent to or in the vicinity of other blighted parcels. These vacant parcels are underutilized and, because of r their proximity t'o other blighted parcels, are unlikely to be developed without redevelopment assistance. m Furthermore,the elimination of blight on adjacent parcels may require the development or use of these vacant d lots, making them both necessary and essential for the elimination of'remaining blight. E _ ev - a C d E a _ RSG, 20 Packet Pg. 114 REPORT TO THE CITY-COUNCIL Amendment No.6 to the Redevelopment Plan-for the Grand Terrace Community Redevelopment Project Location of Remaining Blight Grand Terrace.Community;Redevelopment Project Area. EXHIBIT•B4 y ��'�G. -v ete�R, 'Q sra +Arab oP 8 z •� 6 F 0 G DTFRRgCE 5 - C -BRENTWOOD r pf 'rn min T„`� I oO�ETON. �DM1• � 'DO�, C CL a 9 i A!W RiON • � M } P r i DAW SF.N CM N GMAVIS • e- � 'CAMIN ProjegtfeiObdiidOry •g - kl c• r JHRUSH _ Inadequate lnfrastructuie2 E i W - � W �fJENTFIE - '-Physical 94ght t0 W tic " Neoes_6ary&'Ess�nt al Pane ERALD vE LL � _`No Longer Blighted Moderate Concenf-Aon cf aCi �•TANAG ° 3 0 AD se f<.;, Coma,lnddents, E RAVEN H�ghi Co`ncari6at oh of ROSIN ROBIN '" Come'Incidenb W �N 1 The Grand Terrace Community edeyolepmerd ProJee{ilien boundary corr�risas the entire CityCoundary: .2 Includes per"odro=nt to roodvrays toquirrng irWavoments for drobts,curbs,putters,and sidewallm. r� 0 Al 02 0.3 0.4 RSVMiles S&tma.,City.Staf,,'County SharifPsDeperhrrent RSG-rWcf reconnaissance O: R. 21 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the .Grand Terrace Community Redevelopment Project .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-data sources and methodology used to identify remaining blighting conditions in the Project Area are as follows: ■ Field Reconnaissance:Trained staff conducted a parcel-by-parcel field survey of the Project Area on January 14, 2009 and subsequently on. January 13 and February 1, 2010, documenting and photographing examples of blighting conditions that could be observed from the public right-of-way. Field:.reconnaissance revealed that blighting conditions identified for most properties in early 2009 continued to-exist one year later. Both physical and economic indicators of blight were noted, such as deterioration-and dilapidation, obsolete design or construction, possible abandoned buildings, and crime such as vandalism and graffiti. ■ Property Tax Research: RSG searched the County Department of Tax Collection and Licens!.ng's Property Tax Bill Information System to use as an indicator that a vacant and neglected building is a abandoned. 0 c r 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 0 proper usefulness and development. d 0 ■ Investigation of Infrastructure Deficiencies: RSG met with City and Building and Safety Department a staff-to determine if any infrastructure deficiencies or other conditions are hindering development in :Q 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 g obtain County Assessor's data on property information such as parcel shape, size, ownership, �I assessed value., sale price, and land use. Parcel location, shapes, sizes and other information was m also available from GIS files provided by the City. RSG utilized this information in the analysis of m existing Project Area conditions. E - ,r r 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 Q development-. d E ■ Crime Analysis: RSG collected information from the San Bernardino County Sheriff's Department ("Sheriff"):and interviewed Sergeant Espinoza of the Sheriffs Department to assess how crime may be affecting the-Project Area. q ■ Commercial Facilities Analysis: RSG used data from InfoUSA®and ESRI Business Analyst Online to ascertain the availability, size, and location of vital commercial facilities within the Project Area and surrounding communities. Particular attention was paid to facilities providing grocery, pharmaceutical, bank and lending, and medical services. RSG 22 Packet.Pg. 118 _8.45- REPORT TO THE CITY COUNCIL Amendment No.616 the Redevelopment Plan for the Grand Terrace Community Redevelopment Project BLIGHTING CONDITIONS Remaining blighting conditions within the Project Area are described'in detail below. LACK OF NECESSARY COMMERCIAL FACILITIES A serious lack of necessary commercial facilities that are normally found in neighborhoods is. an economic condition that causes blight. An analysis of commercial facilities indicates that there is a significant-lack of r necessary commercial establishments in the Project Area.. As described earlier.in::this Report, the development of Grand Terrace began with the construction of the. Gage Canal in 1.896 which brought water from the Santa Ana River marshland below The Terrace. Due to the area's access to irrigation water, Grand Terrace became an agricultural community. Since the:waning of agricultural uses in Grand Terrace and_the City's incorporation in 1978, the community continued to develop g with:more and more residential uses (42 percent) without necessary:commercial uses (3•percent) to support ti- the needs of the local residents. The following discussion identifies and analyzes the 'Project. Area's a� deficiencies in.grocery stores, pharmacies, medical facilities, and other commercial uses. Due to the fact that C the Redevelopment Law is silent as to what constitutes a"serious lack" of commercial facilities, and without a It standard measure regarding an adequate: number of grocery stores, drug stores, and medical facilities c typically serving neighborhoods, an analysis of- existing uses in the Project Area was ;performed and ;0 compared to neighboring jurisdictions. As a general note,.the following analysis is primarily based upon data m' collected from Info USA®, a trusted source and.leading Provider of business data. c . c. Grocery Stores a v, The Project Area lacks necessary.grocery facilities as there is just one grocery store, a Stater Brothers Market, serving the entire City. The Stater Brothers Market is located in an outdated shopping center at the c southwest corner of Barton Road and Mt. Vernon Avenue. Additionally, four convenience store or mini- N markets, ranging in size from 0 to-2,500 square feet, are located in the Projeet•Area which may also provide o limited grocery products to the community. The amount_of existing grocery space available in the Project m Area was calculated on a per capita basis and compared to,that of surrounding Inland Empire communities. The.Project Area contains just 0.88 square feet.of grocery space* -per,person residing ih.the'community which d is significantly less than the amount.of grocery space per capita in the surrounding Cities of Colton, Riverside, E and San Bemardino. The City of:Loma Linda had a square feet per capita rate of 0.91, which also exceeds 0 that of Grand Terrace. Table B=1 below summarizes the amount of grocery space per capita for the Project Z Area and neighboring communities. c d Comparison of Grocery.Stores Table:B-1 Grand Terrace Community Redevelopment Project Area Q City Grand Terrace. Colton Loma Linda Riverside San Bernardino Population 12,759 53,073 21;98'I 800,006 208,335 Total Sq. Ft.' 11,248 94,990 191-996 659,940 389,948 Sq. Ft. Per Capita 0.88 1.79 0:91 2.20 1.87 % of Grand Terrace 100% 203% 103% 249% 212% Includes convenience stores,food markets,food products-retail,gourmet-shops,grocers-retail;and health&diet foods- retail as defined by the NA IC. Sources:Esri Business Analyst Online andWbUSA.com RSG 23 1 REPORT TO THE CITY .COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project The fact-that the Project Area provides less than half the amount of grocery space as three out of four of the surrounding cities suggests that the Project Area not only lacks grocery facilities but that it is seriously lacking a' necessary commercial facility,normally-found in neighborhoods as provided in the Redevelopment Law. The following exhibit illustrates the amount of grocery, space per capita provided by each of the previously mentioned communities. Square Feet of Exhibit 15 Grocery Space Per Capita t 2:50 2.20 i d 2.00 d 1.79 - 1.87 1.50; - . o 1.00 � c 0.88' 91 0..50 c. Q 0.00 r Grand Colton Loma Linda Riverside. San Terrace, Bernardino m c E t R :Drug:Stores • Q c Only one pharmacy, a CVS, is located within the City and.the Project Area.(as stated previously, the City and Project Area boundaries are .the :same), to meet the community's prescription drug needs. This CVS is .Ee located at the northeast corner of Barton Road and Mt. Vernon Avenue. When compared to neighboring cva jurisdictions, the Project Area provides far fewer pharmacies per. capita. As shown: in Table B-2 on .the- a following.page, there is one just one:pharmacy per 12,159 residents in the City of Grand Terrace but there is one pharmacy per: 10,615 residertt8;'4,396 residents;--8,574 residents; and 7,716'residents for the Cities of Colton, Loma Linda, Riverside, and San Bernardino, respectively, These comparable cities are providing 120 percent to 290 percent:more pharmacies per capita,which indicates that the Project Area is underserved. 4 lack of quality data made it impractical to base the comparison of pharmacies ion,a per square foot basis.This was due to the fact that- pharmacies are often located within supermarkets or medical facilities which using square foot data provided by InfoUSA®would have overstated pharmacy sizes in certain cases. R.SG 24: Packet Pg..Izo,-, REPORT T:O THE CITY COUNCIL Amendment No 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Comparison of Pharmacies Table B-2 Grand Terrace Community Redevelopment Project.Area City Grand Terrace Colton Loma Linda Riverside San Bernardino Population 12,759 53,073 21,981 300,096 208,335 No. of Pharmacies 1 5 5 35 27 Pharmacies Per Capita 12,759 10,615 41:396 8,574 7,716 a n % of Grand a Terrace 100% 120% 290% 149% 165% 0 c Sources:Esd Business Analyst Online and InfoUSA.com W tM c Medical Facilities ._J Although not specifically identified by Redevelopment Law, medical facilities.are-a.necessary facility'typically c found in communities. The Project Area seriously lacks medical.facilities and doctors offices. According to a IhfoUSA®and other verifiable data sources, the City.has just one physician's office which is less than 2,500 Q square feet.in size. Although no.appointment is necessary for urgent care situations, the facility.has limited hours of operation (3pm to.7pm)which significantly hinders its accessibility to area.residents. Apart from this c family practice/urgent.care:clinic, the City has no other medical facility. Although Project Area residents may N access primary.care, hospital.and emergency medical services, and other healthcare facilities.in nearby cities, c there is still.a serious lack of medical facilities within the.City of Grand Terrace. Given the fact that.the Project r-I Area-has dearly 13,000 residents and just one physician's office/clinic it is clear that the Project Area is m seriously underserved-by necessary medical.facilities and doct&s offices. d E Other Commercial Uses Residential uses have developed disproportionately more compared to commercial uses in the Project Area. Q Therefore, the Project Area is underserved-by commercial establishments resulting in a significant leakage of disposable income dollars being spent by residents outside of the Project Area.for common items such as clothing, full-service dinning, general merchandise,. auto parts and .accessories, etc.z The leakage of disposable income for a variety of industry.sectors, such as those described above, provides further evidence M of the overall general fack:of commercial uses.in the Project Area. Although a lack of commercial retail is not Q specifically identified in Redevelopment Law as "necessary commercial facilities that are normally found in neighborhoods'., it does suggest.that the community could support additional. retail and dinning uses which would generate :needed sales tax dollars- :an important source of general fund revenues in many communities. The addition of such revenues could be utilized forincreasing and expanding-the Project Area's currently limited public services further protecting the health and safety of residents and workers. 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 2 ESRI Business Analyst Online,Retail Market Place Profile,City of Grand Terrace,January 22,.2010 25 REPORT 'TO THE CITY COU:NCI'L Amendment No.6 to the Redevelopment Plan for the .Grand Terrace Community Redevelopment Project 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 fhe'.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 a site.. The City Council approved the specific plan but the developer withdrew from the project because the a freeway access-to the site was insufficient. Exhibit B-2 identifies the location .of the Southwest Commercial d Site. cm - c �a Southwesf.Coromer�tal Site „ EXHIBlfig=2 CD C J Soiithwesf CoriimerclaSitc - C. Q. ;Q M = 1 C E . C - 01 E C1 01 Pico 7� 41 - - ,PRgif['C�:i4REA B�UPiDAf7Y a - - - ��.-t_ - ^ -- - - -.. ,-.. -- `Otl.626A5`:='0.1, .0,16':?",02�:....•,-• .... - ,i sn. luUlut! t -Sources:ESRR ijnd Cdy 1;IS'lkpaitiriai[ i 'Rs 1 26. "z. sC a- REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community.Redevelopment Project According to the City's Building and Safety department, .the Southwest Commercial Site contains approximately 4 acres of wetlands that will heed 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 stomis drain improvements would be constructed underneath roadways,the cost of-the improvements would-need to be funded by the Agency. 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 a accommodate the increased traffic volume that would result from the development of t_he site. Van Buren a 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- Sife. 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 0 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 0a performed.by RSG, there is a significant funding gap between the actual cost of developing the Southwest a. Commercial Site and the expected return on investment to a private developer: :Q ri To assess the likely'funding gap, RSG conducted a pro forma analysis of building costs and project value N under two hypothetical -development scenarios: a regional shopping center and. an industrial flex N development. In both scenarios, a 60-acre site was identified for the development. Access to the site was CI assumed to be:along Van Buren•Street and Pico Street from within the City and along the proposed extension m 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 .c wetlands mitigation. On-site improvements include parking, landscaping, and loading areas, and the cost is M based on Marshall & Swift average construction costs in San Bernardino County,. Direct construction costs Q are also based on Marshall&Swift costs. Market value of land and;gross scheduled rents are based on lease c rates for comparable properties listed on Loopnet: The site design is hypothetical and not based on any City E or developer plan or document. ,E Exhibit B-3 on the following:page provides a summary of assumed development standards and costs. a • S_G 27 . Packet Pg;123 8;C:d REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Exhibit 13-3• • • • • • - Regional Shopping Center PROJECT DESCRIPTION Gross Site Area Square Feet 2,623,183 Gross Site Area Acres (excluding.right-of-way) 60.22 Nonbui,Idable Square Feet 418,612 Nonbuildable Acres 9.61 Developable Site Area (Square Feet) 2,204,572 Developable Site Area (Acres) 50.61 Lot Coverage 0.25 IL Gross Building Area.(GSF) 551,143 Net Building Area 551,143 a On Site Landscaping, Parking & Loading Area 1,653,,429 Landscaping Area 0 c a� RESIDUAL LAND VALUE Assumptions Totals $ Per GSF C d Development Costs e a Direct Construction Q' $100.12/gsf $ 55,'178,663 $ 100.12 :Q On-Site Improvements $4.44/sf 7,832,993 13.31 e_h Off-Site Improvements $3.33/sf 7,340,000 13.32 Indirect Costs.(inclu.ding Financing)@15% $17.01/gsf 9,376,748 17.01 AN Total Development Costs Excluding Land $ 79,228,405 $ 143.75 CD � m Capitalized Project Value E Gross Scheduled Rents $1.80/sf(nnn) $ 11,904,687 $ 21.60 (Less)Vacancy and-Bad Debt 8.50% (1,011,898) (1.84) V Q Effective Gross Income(EGI) $ 10,892,788 :$ 19.76 (Less)Operating Expenses Management Expense&'Fees 4.50% EGI $ (490,175) $ (0.89) Reserves $0.15/0sf (82,671:) (0.15) Total Operating Expenses (572,847) (1.04) Q Net Operating Income (NOI) $ 10,319,941 $ 18.72 Capitalized Project Value 11% Cap Rate $ 93,817,649 $ 170.22 (Less)Cost of Sale 3% Value (2,814,529) (5.11) (Less)Developer Profit 10% Value (9,381,765) (17.02) Total Warranted Investment 81,621,354 148.09 (Less)Development Costs $ -(79,228,405) $ (143.75) Residual Warranted Investment $ 2,392,949 $ 4.34 Residual Value per SF Land $ 0.91 Source: Marshall& Swift, City of Grand Terrace, Loopnet • 0.SG 28 . Packet P.g. 1241 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project The residual land value,per square foot 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 $14 per square foot according to comparable real estate listings on Loopnet.com as of January 29, 2010). As a result, this project is,likely not economically feasible Without Agency assistance. Exhibit B-4 on the following page provides a summary of assumed development standards and costs of an alternate development scenario on the Southwest Commercial Site. This second scenario includes the development:of industrial flex space. IL n a .d C c O - J d O Q. M ;Q ' M O N N N O I m r C as E 0 O _ Q C d t to Q OPSG_ 29 ;Packet:�P,g�125+ REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community, Redevelopment Project Exhibit,B-4: • • - • "Industrial Pei Buildings PROJECT:DE$CRIPTION Gross Site Area Square:Feet 2,623,183 Gross Site Area Acres (excluding_right-of-way) 60.22 Nonbuildable Square Feet418,612 Nonbuildable Acres 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 2 Net Building Area 881,829 a 'On Site Landscaping, Parking& Loading Area 1,322,743 Landscaping Area 0 w RESIDUAL.LAND VALUE Assumptions Totals $Per GSF J ' d Development Costs c - _ L Q. Direct Construction $47.71/gsf $ 42,073,808 $ 47.71 :Q On-Site improvements $4.44/sf 5,866,394 6:65 .r_i O,ff--Site Improvements $3.33/sf. 7,340,000 8.32 Indirect Costs (including Financing)@15%- $8.15/gsf 7,19,1,030 8.15 Total Development Costs:Excluding Land $ :62,471,233 $ 70.84 m Capitalized Project Value E Gross Scheduled Rents $0.90/sf(nnn) $. 9;523,749 $ 10.80 (Less)Vacancy and Bad Debt 8.50%. (809,519) (0.92) Q Effective Gross Income(EGI) $ 8,714,231 $ 9.88 (Less)Operating Expenses d Management Expense&.Fees ' 4.50% EGI $ (392,140) $ (0.44) - t Reserves $0.15/gsf (132,274) (0.15) Total Operating Expenses (524,415) (0.59) a Net Operating Income (NOI) $. 8,189,816 $ 9.29 -Capitalized Project Value 11% Cap.Rate $ 74,452,872 $ 84.43 (Less)Cost of Sale 3% Value (2,233,586) (2.53) (Less)Developer Profit 10% Value (7,445,287) (8.44) Total Warranted Investment 64,773,999 r 73.45 (Less)Development Costs $ .(62,471,233) $ . (70.84) Residual Warranted Investment $ 2,302,766 $ 2-.61 Residual Value per SF Land $ 0.88 Source:Marshall& Swift, City of-Grand Terrace, Loopnet 30 :Packet9Pg:-126-- , H:C_ REPORT TO THE CITY COUNCIL Amendment No.6 to the.Redevelopment Plan for the. Grand Terrace Community Redevelopment Project The residual land value in Exhibit B-4 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 encouraging 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. _ a Main Street and Michigan Street Improvements a The current condition of Main and Michigan Streets presents a safety hazard to pedestrians walking:alongside CD or crossing Main Street and Michigan Street. Currently; both streets are two'lane roadways with intermittent r_ 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 c Street intersect with each other and with other local roads. J The CJUSD has begun grading fo'r and construction of a new high school on Main Street near Taylor Street c with:a planned enrollment capacity of 2,500 students. When complete,the school will exacerbate a number of `L traffic concerns with both increased. vehicle traffic and problems caused by intermittent curbs, gutters and C' Q 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 responsibility of the Agency because the City, o does not have the financial capacity to fund these improvements' N N Improvements to Main Street and Michigan Street (from Barton Road to Van Buren Street) to secondary highways (fourdanes, undivided) with curbs, gutters,,and sidewalks on both sides of each are :needed to op 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$3 million of Agency investment to fund the necessary.improvements. The=City does not have the revenue necessary to fund these improvements without redevelopment and it does not have the authority to obligate Q CJUSD to provide any assistance. m E z ca Q R$,G 31' REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project A: r r { • • "s Srr ad d tM • 'F Faux`+'�,'', _A&. • s r '', �`� P� Q. ad.,. .rWa Photo B-1:,Northwest corner of Main Street and Michigan Avenue. Depicts the lack of curbs, sidewalks and o gutters. The site currently has-poor pedestrian access and there is not safe separation between motorists and pedestrians. The Agency will need to fund these vital infrastructure improvements prior to opening of the new CJUSD high school. E Barton Road/Union Pacific Overhead Bridge43 Q The Building:and Safety Department identified the Barton Road/Union Pacific Overhead Bridge as another d infrastructure project requiring Agency assistance. While currently in use, the bridge is structurally deficient E and seismically Unsafe; requiring approximately $500,000 of Agency investment,to match the contribution from the City of Colton to replace the bridge'with-one that is up to current development standards. This bridge Q is outside but immediately adjacent-to the City and Project Area and therefore provides a direct benefit to the Project Area: Approximately ten years ago, the City approached the California Department of Transportation '("Caltrans") requesting a,contribution for retrofitting the bridge, but Caltrans preferred to replace the bridge. Agency investment would,cover the acquisition right of way and.a:hazardous materials study along with any other identified remediation needs. Infrastructure Improvements West of the 1-215 Freeway In general, properties in the Project Area and west of the 1-215 Freeway lack public improvements such as sidewalks, curbs and gutters. Asa result, the area has poor pedestrian access and certain portions are subject to flooding. In particular, the streets most adversely affected are Terrace Avenue, Grand Terrace Road, and Vivienda Avenue, and La Crosse Avenue. During Field Reconnaissance, children were observed walking in the street along Terrace Avenue because the area did not have sidewalks available for safe pedestrian access. .RS C 32:. ' � 'Packet'P.g. 128 REPORT TO THE CITY COUNCIL Amendment No.6 to the.Redevelopment Plan for the Grand Terrace Community Redevelopment Project The following photographs depict the area's lack of infrastructure. a 2 n as a� - c co a� c O ,J d O •C. C. Q CM O N N N O T Photo B-2: Facing south on Terrace Avenue-Depicts the lack of curbs,.gutters, and sidewalks.The properties � located to the left are situated in a flood plain and would require significant costly improvements, including E water retention basins to make the site developable. Q c d E s cc Q ,RS-G, .... . 33 .Packet,P,g��129 "- REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project a 3 L.. c . t�v1 tA.�. .> ,A$n c. '_ / O` Cti'•.' .t ,. i .`..,.::,.i>-�?:"�..,ft' -.arm""5 .; . - - Q ,��. .a•ri'^l{r. k �+ 'i;':+a .'Y"A�{.tw`F�;,, +F"e•`gxrdGyk'}[,si< Q Photo B-3! Railroad overpass at Terrace' Avenue. This photograph depicts access issues confronting :c development of the Project Area north of Vivienda Avenue. The roadway is extremely narrow and �l experiencing significant flooding and mud conditions. The area has been vandalized as indicated by the m visible tagging of the overpass structure. d .E s . co a - w d E a RSG 34 PacKet�P.g130� REPORT TO THE CITY GOUML Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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. 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 upJo 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. a Additionally, the plant's:proximity to a sensitive land use (the new CJUSD high school described previously), a would likely prevent the plant from reopening. a) M In 2006, an application was filed with'the California Energy Commission ("CEC") to reuse the site fora 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 c Substance Control ("DTSC") concluded that the investigation into hazardous material on the, site was _J 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 Q remains on hold due to environmental concerns. There is currently no schedule for completing the application C process for this project. co Due to long term vacancy resulting from.the plant's obsolescence, the site appears unmaintained and shows c signs of deterioration and vandalism. The=photographs on the following pages depict examples of these N 04 conditions. o . c m E •s Q c m E s M ' Q _•': 'RR'G 35 'tPacket�Pg,1:31� RE PORT TO THE CITY COUNCI Amendment . 6 to the Redevelopment Grand Terrade Community Redevelopment Project CL IL .�t��.`s'r ♦f-1�•V "( ,��.'a�w r�. �f a J" fi� � � r { _ �r, r}�." ' �Y'r�L'4�t z{n-� �1 �„ fi y 1u�, ii,'t - .�.i •i.� """,., Photo 11 Blbck'bf TaylorAPN 1167 •• This isithe closed Highgrbvb Generation Station. 133 36 ' a • '8':C�sd�_ REPORT TO THE CITY COUNCIL Amendment No.6 to-the Redevelopment Plan for the Grand Terrace Community Redevelopment Project "� �^w ''TmWaM1 J '� L.�. it r_.y y. • Ffy -��'•{�'ii..S�'S. /+ra r i 1 "^P� °��w`�"` -^^wsa '`+3Y«l: •� F f•, #T'' `�-�e ��w arm �,W,��"-^-*'q � �. - -'.,11• _ ��;,' '.� -twy n p J w Q. f4r""}..;; $��' '4'I T'£ ;' ,eb n'':-. }-c N,;.•. .a- =.w.^::v :y? �_:� - �g;$': � - Qe ��y` ,�ltz 'a .. x�d '.. _ �.�'Y .•tr••V'' '�.,Ye-'T,y yi�+t� (R,��'�:, �i`.t �j(;� - Q _:�i .+y�,, �'^ x�-1rt'i: •"lk�z i'A.F.�,4 �f'' :- .:.,�`.., �� .:� co 'y,, �F,{, {!}.rTrq�/. �;•r'- N� r:.� .fR-.,-r ,.c -,." f'�s,+'.�; �t'.•'�'_f%• qi N N Photo B-5: 12700 Block of Taylor Street, APN '1167 151 66. The siding of this structure on the"plant site is c falling away,:revealing bare framing materials underneath. m .r c d E s Q c d E s • a . .. RSG 37 • -�Packet�Pg. 1;33� REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community}tedevelopment Project IL J CL M Photo B-6: 12700 Block of Taylor Street,APN 1167 151 66. Another structure.on-the,plant site with-damaged c building materials. �I " m It is.unlikely that this.obsolete facility will be reused due to the fact that it'has been; dormant for over 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 co incorporating the plant between 1996 and.2004 revealing low levels'of contamination in localized areas..This Q contamination included elevated concentrations of cadmium and :arsenic in some soil. samples, a minor 1 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 .c could.reveal additional contamination. The DTSC concluded in 2006 that further investigation into possible M hazardous material on the site was required. Q 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 multiple 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. ^^� R-S`G 38 V- �76*et oi -1- is cca�_ REPORT'TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Comm unity.Redevelopment Project • 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 6hd safety of buildirig occupants. • Substbadard..building materials .and poorly constructed additions 'that' do not comply with current building standards.. • Faulty weather protection that could accelerate t n_he'deterioratio of-the building or pose-a health and Jr safety-hazard. The following photographs.illustrate these conditions of deterioration.and dilapidation. The photographs depict both residential and'non-resideritial properties. a a d c a� c 102 m Q. O N _ N O ' m C IC _ s co Q c d E cc Photo B-7: 12.600 Block of Sandburg Way, APN 11,07 201 103. This dilapidated structure 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 structure clearly unsafe'for use. Packet Og"A 5� REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project :�?�;� hti`�-.'`"'`y ' �� ,.Sig h,��.Jn _ �`'�`�"*�Y yA„r4::'iip•y�``��j "l, s'`:+�'.',.��s '''t`, 4 ,W'' +n"�4 f y � 1 y.'�,F y_{, i-S�'�. 4 _ •� e1 . .� P'•.,.._ . '�y��T•}� I `h' Tilt•sw� /� ��$`g^.�"� �{:• r r W'• ,mac,'{..�`t L` :T��g`'k.., •4,hi.1'�� n��Y�� t w r,•. RL - `- .� : e' ' - d Q. �� •�, �` .. ,�,,. .h:i,,�...�^,k.. ,'ale .,. , '�; - bi '{I" M ' d ^...s t :'• _ �.. tit T'.__ Photo B-8! 12600 Block of'Sandburg-Way,APN 1167 201 103.This dilapidated.structure appears to beat risk 'o- of collapsing.. r I = � d E • c d RSG, 46:. �?acket;Pg. 136� REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project �P a IL IL ✓k' y d e' :N. 2 r T ry s 10 C O .I d O L Q. Q Q v - M 0 N Photo 13-9: 11800 Block of Bums Avenue,APN 275 191 .02.The damaged building materials in this-residence c 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. m c m E Q c d 'E v cc - a r R;S 41 Packet P,g. 137- REPORT TO THE CITY COUNCIL Amendment No.6 to the,Redevelopment Plan for the Grand Terrace Community Redevelopment ProjectCL IM tM i C J d 1 Q a a Photo B-10:.21700 Block of Vivienda Avenue, APN 275 191 02. Portions of the'7bbf of this building have c collapsed and the remaining roofing material is significantly deteriorated. �� c0 • m E d .�E ca i i - I 1 42 Packet Pg138' �{✓M7a,1 .-T �4S 'i fro ' ♦ S.. } �' '_.,^� ,• �-. t' ��{� R.�lwr"f.. f�,,��'i��1 t .Yr � •-�� 44!!� l��`\ �{� 1.ia � 3.'qu i H ` F•t,./ 4 ' �.i f F ..rfiF �.• FX. �: T _ - REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project, IL 2 IL • � m a� c c� o� c 0 d 0 a c. Photo B-12: 12500 Block of Michigan Street, APN 1167 191 04. This residence has a poorly constructed 'o second story addition and damaged exterior building materials.The unfinished portions of the wood siding are 1�I showing signs of deterioration. According to.City staff, the deterioration is caused by termites. The City has m repeatedly encouraged the owner to replace the siding but the owner.has refused. E t m a w d E a 44 .Packet P-g. 1.4.0 REPORT TO THE CITY COUNCIL Amendment No.6 to'the Redevelopment Plan for.the Grand Terrace Community Redevelopment Project a b,5"n,. tjSfs 7,0 ]yid �'4 �..."•`-_0� 77 a. 2 a d cM c co ar c O J O - "� Q .... N Photo B-13: 12500.Block of Michigan Street, APN.1167 191 04. The darnaged.roof of this garage appears to .c 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. m c m E t Q • w c d E s ea _ Q O 'RSG 45.. Packet Pg.141_ 8',C:— REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Comri unity.kedevelopment Project. IL n a 0 W - c 6 c 0 J d 2. Q. Q. Q v r M .Photo B-14:'11800, Biock'of,Burns Avenue, APN 275 282 14.-The'damage-to the left side and 7back of the c chimney of this:residence poses a.safety risk as it'appears to be breaking apart. m d E - � a d E t eo a i I 1 i aJS-"G; 46 ✓.Packet Pg: 142 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment-Plan for the Grand Terrace Community Redevelopment Project CL • • a ar IM c 0 y t Q. v n- M N Photo B-15: 12700 BI'ock of Taylor Street, APN 1167 151 41. The roofing .materials on this structure are c damaged and do not appeae to adequately protect the interior against the elements. The sides of the_building r'l show sighs of past vandalism. m w - c - d E - Q c d E s eo Q ' R;S '. 47' Packet?Pg.;:143 ' REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community.Redevelopment Project t 0) C O CL xt 4.::�, s' f ��4L�v:x. ,,. .:m4 ' f N_, _ ...,, ;"..'i.+ - . , ,`�s 4`w �.► Photo B-16: 21893 Barton Road, APN 1167 121 01. This vacant, neglected structure shows severe signs of m dilapidation and deteriorating building materials. - m E .t . a m E v c� Q q;RSG 48 Packet'.Pg. 144- REPORT10 THE CITY COUNCIL Amendment No.6 to the Redevelopment Plah for the Grand Terrace Community-Redevelopment Project VVIF n i a d , " J Im Z9r"L' _.'s.;.. -•ter-t''t.?i�'"wit. '',i» C 7: aq'^W '6_ h -r, „• + CL ... „ l - .. .. N N 'O ' r Photo B-1,7:'1;2559 Michigan Street,,APN 1167 271 10:'This vacant residential unit suffers from exposed m wiring, deteriorated building materials, unfinished roof, and trash and debris. _ E .s Ca Q w c d E L v Q ,�. RSG 49 : ^ �Packet Pg;14-.5"- REPORT TO THE CITY COUNCIL Amendment No:g to fhe Redevelopment Plan for the Grand Terrace Community,Redevelopment Project �+,ti... r_ -•.j�. - .r' r ti -I 1 ,J. 'j' i a _ a d c a� 0 d O Q. CL j V 4. Photo B-18: 21842 Palm Avenue, APN 0275 223 27. This ancillary structure located-on'a residential property c is unsafe.-The structure is dilapidated:and the roof is severely sagging. - - m E .s w ' a 1 - d • E 5U- - Packet�P�g�1:46: REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the y Grand Terrace Communit Redevelopment Project 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 maybe affecting the Project Area, information was collected from the San Bernardino Sheriffs Department who provides police services to the Project Area. 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. More specifically, these areas of heightened criminal activity in the Project Area are located primarily around the City's commercial establishments:along Barton Road, areas containing high density housing, and property adjacent to the railroad tracks . Exhibit B-5 ii on the following page clearly indicates areas of higher and lower concentrations of crirriinal activity which is a primarily consistent with the location of criminal activity hotspots in 2008. Exhibit B-5'references calls-for- m service during calendar year 2009.for Uniform Crime Reporting ("UCR") Part I and Part II crimes:as well as c other less severe types of activity. a� c 0 J d O C. ,a M - - r O N N N O m C d Ir t v - Q C d E t C1 M a RS_G 51 'Packef�Pg..147 . REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Exhibit B-5:2009 Calls for Service CITY OF GRAND TERRACE �Tr 2009 Calls for'Serv�ee n `� �• a t' h1r j Q Cl Ca - �r :Hot Spot of r; ) ra Concentra0op of Incidents Q Very High ;; ! I I t High Moderate •Low NoneAl Q Buper.=Ana" {y Cm ldc3 Created-014'I25Q010 �^' FmLawE+ducZsrrerd Use pyy. O RSG 52 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Section A 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 service calls 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. (L n • a a) tM ca o� . c O J d • O Q . Q. a O N N N O i m c d E V O Q c d E C� �0 Q .' R.8�G 53 Packet Pg:1,49 SECTION C Five-Year Implementation Plan Implementation Plans contain 1) specific goals and objectives for the Project Area, 2) the specific projects to be completed in the Project Area, 3) expenditures to be made during the five-year planning period, and 4) an explanation of how these goals, objectives, and expenditures will eliminate blight within the Project Area. The Five Year Implementation Plan for the Grand Terrace Community Redevelopment Project Area, describing proposed projects from 2010 to 2014, is attached to this document as Appendix A. a a d co o: O J d O C. C. Q M r O m� r+ C d E v R Q _ 01 t v Q j: R55 3 54 vPacket:�Pg. 150' SECTION Explanation of W,hy the Elimination of Blight in -the Project Area Pa'nnot be Ac'co r Mplished by Private Enterprise Acting- Alone or Through Other 'F*ina.ncin.g Alternatives Other Than Tax Increment Financi-ng Section 33352(d) of Redevelopment Law requires an explanation of why .the`elimination of blight cannot be " Ai n accomplished by private enterprise alone, or by the City Council's use_,.5f,1 cing alternatives other than tax increment financing. Section B provides evidence that significant.,,b.H`gJht remains in the Project Area despite _ redevelopment activities completed to date. Tax increment is n, c6s-sary to fdhd 1redevelopment projects to address blight,because the public,and private sector cannot,b�,�8xpected to-al-leVi'dte,,blighting conditions on their own. IL At the time the Project Area was adopted and subsequently amended, the documents and'reports prepared in 'L connection with the Project Are&established the need..'8r,tax increment revenue to adftefss the blighting 0 conditions present at that time. Funding L sources othet"•t-an tax: Increment that are typically utilized to implement redevelopment typically include Community Devblopffient Block Grant DBG") Funds; City 6 1�n C 'capital improvement funds; assessment districts; devel6per participation; and other private sources. The 0 Agency and;City have used other funding-source s,when availdbl6lbut these,-other funding sources have historically been inadequate and continue t6 be 'in,adequate, espedi`9Ily\!n light of the State-wide general > economic downturn. For example, accordirib.-to,the Finance Department',the City redeives'less than $30,000 per year in CDBG Funds. The City,.h.@,s also hotib'den elig!IJIC346r�,grants due to.the low population of the City CL median 'h(less thar�,18,000 residents)�,@(nd d' income'.-, levels-Y-the City, age not significantly below the County median income ranges. CD City resources are insufficient to fund th&U6adth and scale of redevelopment efforts that Would alleviate and 04 N reverse-the blighting conditions enumerated in Section,b of this Report and lift the burden placed on the community'without the assistance ofr6dev,-Olopment At described in Section A of this Report, the total op estimated cost e of-blight remdibtibwbbtK�ities td�;jlt I , I er-'$36 million. It is impractical for the City to bear these.7 excessive costs b06ffute,,,of the Iai&,Jof sufficient revenues the.City is.already experiencing. The City's current fiscal year,,2009-1 0 budget-Ishows ith6t)in the previous fiscal year, 2008-09, total expenditures exceeded total -E -"b,) �r$3 million. More Sri-d-cifically, general fund expenditures exceeded revenues.by almost$1 A revenugs��vy iOVE is million in, that year.alone. Th0,.\Qity's,Sih`ance Department has confirmed that $900,000 of reserve fund revenues hgd',atp be used to fill'',this fundiftq*g8p. Additionally,.-th.e.:Finance Departmeint:has indicated that 4i C available GeM&N Fund R,esorve�,,,gre currently$0, while'$3.9 million in-designated reserve funds have been V ,Z ' -"I E restricted arid-96t 'aside to pay existing debt obligations to the Agency. the:•current fiscal year.2009ml 0 budget shows-revenues exceed667'expend'ItUres, this is only the case after three employees were laid off in M January 2009 and.additional butt'to existing costs were made. The budget states that nearly all sources of < revenue are either decroasingor remaining the same, while.costs have increased. In total, it is expected that general. fund revenues Venues F&,Affie-current budget year ,will :decrease by $206,709.. The revenues :that are expected to decrease include those listed in Exhibit D-1 on the following page. 50- 'E, 7 IRS 56 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Exhibit D-1 FY 2009-10 Reduction in General Fund Revenues 6.00% -5.00% Propertvtaxes Lice sesa Sal es Taxes Char sforFe s Inv stme -1.00% P m -2.00% Ea n n s 40.00% -9.70% -15.00% -20.00% a -25.00% a d a� -30.00% c to -35.00% a1 C It O -40.00% J d -45.00% -42,30% i Q. O. Q M The historic and current lack of City funding-for redevelopment activities and improvements is expected to continue into the indefinite future, especially given the potential upcoming additional adverse impacts on City funding sources and expenditure obligations resulting from the State budget shortfall in FY 2009-10. o These figures- demonstrate the City's inability to fund redevelopment projects and programs required to 00 eliminate blight and the.need for continued allocation of tax increment revenues to the Agency as a means to c d fund redevelopment imthe Project Area. E s In summary, the City's revenue-sources are not adequate to maintain a constant level of City-wide basic services much less fund public infrastructure, developmental remediation, revitalization or affordable housing Q programs in the Project Area. In fact, a portion of annual 'redevelopment revenues are currently used to assist with funding the City's community enhancement programs, housing programs, infrastructure projects, m and economic development, planning and public works projects and programs. According to the Agency's E fiscal year 2009-10 Statement of Indebtedness, redevelopment revenues are contributing to approximately Q $800;000 per year to general fund costs. These costs are primarily for infrastructure improvements and staff Q time as City staff spends a significant amount of time on economic development and other programs that are related to redevelopment. If Amendment No. 6 is not'adopted, the tax increment revenues, which act as an ongoing funding source that contributes to the costs of many City projects and programs,.will cease to be collected, having a critical and significant impact on current City staffing levels and the.continuation of many' City services. Tax increment is a financial tool that enables the government to assist residents with property improvements, as well as provide more opportunities for homeownership to increase-the number of owner occupied homes and encourage neighborhood pride. Tax increment is also used to provide incentives for the private sector to invest in the'area and revitalize the local economy. According to information from City staff, developers and businesses currently have minimal interest in locating in the Project Area. The City and Agency have unsuccessfully attempted to implement the Outdoors Adventure Center pursuant to a specific plan adopted some years ago due to a lack of private sector interest. Amendment No. 6 will provide sufficient tax 56 - Packet�F-g:152^ REPORT TO THE CITY COUNCIL Amendment No.6 fo the Redevelopment Plan for the Grand Terrace Community_Redevelopment Project_ increment funding for the Agency to provide developer assistance as well as public facilities and infrastructure improvements that will create more attractive and desirable neighborhoods.. Overall, 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, developing and rehabilitating property, and soliciting new development. The current financial limits of the Redevelopment Plan result in a shortfall in revenue that leaves the Agency without the financial resources to fund the projects listed' in Section A, totaling $30:9 million (excluding financing and administrative costs), which are necessary to continue.:tKe. Agency's redevelopment of the Project.Area. Amendment No. 6 is necessary to collect enough tax increment to fund these projects. Without Amendment No. 6, the Agency would reach the total'cumulative amount of tax increment that may be collected 14-years.prior to the time limit on when the Agency may collect tax increment pursuant to the existing Redevelopment Plan. This would restrict the Agency to collecting tax increment for just 3_additional fiscal years: Amendment No. 6-will enable the Agency'to collect tax increment up to fiscal year 2033-34, resulting in an additional $137 million in tax n increment over the duration of the Amended Flan. Other public funds are unavailable for funding redevelopment of the Project Area. The City's General Fund M experienced a $1 -million deficit for-fiscal year 2008-09, and the City had to close this -gap by reducing R expenditures (including employee lay-offs)and tapping into reservefunds. State and Federal funding sources are,contingent upon State and Federal Budget-constraints and political willingness, and are not a secure c source of funding for future projects. Amendment No. 6 is necessary to fund-redevelopment projects that the .1 City cannot fund without tax increment. - o L CL Q. - Q v M _ T O N N O m C d E S R Q C d E V �0 'R;Q 57 Packet;P,g; 153. SECTION E Proposed. Method of Financing, Including the -Economic Feasibility of the Plan Amendment Section 33352(e) of Redevelopment Law requires that:a report of an agency to a legislative body include information on the proposed method of financing, including information on the economic feasibility of the proposed Amendment No, 6. 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 td alleviate blight. Amendment No. 6 will a increase the cumulative limit on net tax increment that may be collected by the Agency from $70 million to d $225 million, nco et of pass through .payments to affected taxing agencies pursuant to reimbursement C agreements, to address this shortfall. Without Amendment No. 6, it is projected that the Agency would reach its tax increment limit in:fiscal year 201'2-13 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 J Agency.to continue to collect tax.increment revenue, if the-cap.ha§ not.been reached, until July 15,.2027 . In addition to raising the tax ihcreriient 'cap to $225 millioh, Amendment No. 6 would also extend the c effectiveness of the Plan and the time limit on-collecting tax incremenf revenue from;July-15,.2027 for both the L CL Original and Added Areas,to September 27,2032 for the Original Area and July,15,;2034 for-the Added Area. Q Amendment No, 6 also increasesthelimit 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- r projects in a timely manner: Amendment No:-6 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. m The Agency intends to finance redevelopment of the Project Area from the following resources: m E • Taxancrement Revenues;. •. Bonded Debt; Q d • Financial Assistance frormthe:City, County, State of California and/or Federal Government; E s • Proceeds from:lease or sale of Agency-owned property; Q • 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. 58 - - h�a_'cket�Pg,1'S4 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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. 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. a 2 IL PROPERTY TAX INCREMENT 0 _ 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 c finance or refinance, in-whole or in part, redevelopment activities. c, c. The current Redevelopment Plan allows the Agency to cumulatively collect$70 million in net tax increment for Q the Project Area, net of pass through payments to affected taxing entities. Based on revenue .projections M provided in Table. EA, this cumulative limit will be reached in.approximately 3 years (14 years prior to the N u expiration of the Agency's authority collect. tax increment), which will preclude the Agency from funding N proposed projects necessary for the elimination. of blight and preventing it .from implementing any new �l projects at this time. Amendment:No. 6 would increase the cumulative tax increment collection limit to $225 op million, net of pass through-payments to affected taxing entities. m Consistent with Redevelopment Law, the Redevelopment-Plan incorporates certain time limits that affect the s 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 a redevelopment plan, or-July 15, 2027 for both the Original and Added Areas. However, Amendment No. 6 would alter the effectiveness of the Redevelopment Plan and therefore the time limit on collecting tax m increment-revenue. Pursuant to Amendment No. 6, the Agency's time limit.to collect tax increment would E change to 10 years after the new plan effectiveness dates (September 27, 2032 for the-Original Area and July 15,2.034 for the Added Area). Q 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. ;Q' RSG 59 Packet P,g, 155 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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. ; 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 Amendment No. 6, 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. Amendment No. 6 proposes increasing this-limit to $75 million, net of a payments to affected taxing agencies pursuant to reimbursement agreements, to increase the Agency's as financial capacity to fund redevelopment projects in a timely matter. a) c c� OTHER AVAILABLE SOURCES c Any other loans, grants, or financial.assistance from the federal government, or any other public or private 0 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 o appropriate,the Agency may use assessment district and/or Mello-Roos bond financing to pay for the costs of a public infrastructure,facilities, and operations. Q M TAX INCREMENT REVENUE PROJECTIONS The primary source of project financing for the Project-Area is the collection of tax increment revenues. Table c E-1 presents a detailed preliminary forecast of tax increment revenues for the Project Area based on the assumptions noted below: m c m Base Year Values: the Agency receives property tax increment revenue from the Original Area assessed E value growth.in .excess of the 1979-80 base year value of $5,729,360 and-.from the Added Area assessed 0 value growth in excess of the 1980-81 base year value of$132,105,951. Amendment No. 6 does not alter the Q base year values of the component areas. c Assessed Value. Growth Rates: Projections prepared for the Project Area incorporate 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 Q 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 CJUSD. 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 additional21 percent of-the-incremental increase in non-housing tax increment revenues exceeding amounts in the tenth payment year(2013-14). RSG 60' Packet-Pg. 156 REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community_Redevelopment Project A forecast of Taxing Agency Payments has been included in Table E-1. Should actual tax'increment revenues exceed or fall below these-projections, actual Taxing Agency Payments would be higher or lower. 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. 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. IL c. m aM . c 6 - c 0 ..a • , m 0 c. a a v N N N O r Im C d E s ea • Q w - c d E M Q 61 • ~�PacketiPg�157, REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 2009-10 TAX INCREMENT PROJECTIONS(WITH PROPOSED AMENDMENT) Lhnit is: TABLEE-1 GRAND TERRACE COWUNRYREDEVELCPMENT PROJECT $ 225,000,000 SUMMARY Fiscal Year Total Pass:Throu9h PaymentsbyAgency - Cumulative Housing Housing Net 'Nanheusing Hand Debt SeMce Net T., Tax Increment Sat :BmdDS Hous1n9 Nonhousing Increment County CJUSD S6Wmry Pmt Total Net of Pass Aside 2004TA Ravanue 2004 TA Zen Bank Leon Taint Ravenna (pd hyCounN) (pd byAgenco (pd byAJenc}) Through Payments 33.35% 6665% (1997 COP) Asof6/30/0% 4RSG eeBmale 55,755,937 Q. i 2009.10 6.666.075 1,990,630 - '185,168 1,990,630 60,451,382 1,337.215 619,301 1 717,914 1237,674 127,424 1,365,098 1,807A65 IL 2010-11 -6,959.510 2,072,039 235.719 '209.064 2,307,758 65,103,134' -1A91,902 619268 1 7 ,33 72,634 1.237.607 254,848 1,492,455 1,5581, 3 2011-12 7242515 2.156,297 316,904 233,796 2.473201 69,872,448 1.448,603 667,792 a 780,711 1,33g583 254,848 1,589,430 1,497,584 :4 2012.13 7:535.425 2,243,505 295,083 259,395 2.53§488 74.869285 1.507.085 1.507,085 254.948 254,948 2,975,510 d O) 5 2013.14 7,838$88 2,333,764 307A32 285,889 2,841,696 80,066,778 1$67,718 1,567,718 254,848 254,848 3,088.437 � 2014.15 8,152,360 2,427,183 321,038 329:266 2.748,221 85,470,316 1,630,472 1,630,472 254,948 254,948 3,189554 s7 2015-16 8,477,115 2,523,871 334,406 374,162 2,858277 91,089,754 1,695,423 1,695,423 254.948 254,848 3294.406 9 2016-17 8,813,237 2,623,944 348,041 420.629 2,971A85 96,930,406 1.762,647 1,762.647 254.848 254.848 3,403,128 11711 C 41 2017-18 9,161.123 2,727,519 361,949 468,722 3,089.468 103,002,061 4$32225 1,832225 254,848 254,848 3,515.860 O 10 2018-19 9,521,184 2,834,719 376.135 518,499 3,210,854 109,312,391 1,904,237 1,904,237 254.848 254,848' 3,632,747 J 11 2019-20 9.893,848 2,945,671 390,605 570,017 3.336276 115,869,963 1,978,770 1,978,770 264848 254,840 3,753,937 7 12 2020.21 10,279,555 3.060.507 '405,364 623,339 3,465,871 122,683.647 2,055.911 2,055,911 127:424 127,424 4,007.010 13 2021=22 10,678,762 3,179,362 420,418 678,528 3,599,780 129,762,829 2,135,752 2,135,752 - - 4264,702 V :4 2022-23 11.091.941 3,302A77 435,774 735,647 3,738.150 137,116,420 2218,388 2218,388 - - 4,399,755 a 15 2023-24 11.519,581 3,429,697 451,437 794,7661 3.881,133 144,754,868 2,303,916 2,303,916 - - 4.539,766 Q 16 2024-25 11,962,189 3,561A73 467,412 :855,954: 4,028.886 152,688,171 2,392.438 2,392,438 - - 4,684,911 17 2025-26 12p20288 3,697,862 483,70E '91%S4 4,181.569 1:01926.990 2AB4,058 2,494,058 - - 4,835.377 _7q 18 2026-27 12,894,421 3,839,024 500,329 984,830 4,3J9,353 19,487,958 2,578,884 2$78,B84 - - 4,991,353 '119 2027-2H 13,385,148 3,985,127 517283 1,052.671 4,502.410 178,364,696 2,677,030 2,677,030 - - 5,153,038 20 2028-29 13,193,111 4,136,343 534,576 1,122,885 4,670A79 187,586,827 2,778,810 2,778.610 - - 5,320,636 '21 202910 14,418,729 4292.852 552214 1,1E5,558 4,845,067 197,160,490 2,883,746 2,883,746 - - 5,494,359 C' �22 2030�1 14,962,807 4,454$19 570206 1270.774, 5,025,045 207,098253 2A92,561 2A92$61 - 5,674p28 TI s23 2031-32 15,525.928 4,622A96 688,557 1,348,622 5,211 A52 217,413,129 3,105,186 3.105.166 - - 5,861,06: ,4 203233 11.486,789 3,419,890 480,028 '933,051' 3,899,918 225,000,000 2297,358 2297,358 - - 4,356,463 m 25 2033-34 225,000,000 d Total 254,800,170 75,860.991 9,695.116 16.370.516 85.656.107 50.960,034 1.906.361 49.053.673 3,809,864 2.803.323 U13.187 95,300,326 L R' Q C m .0 V t0 Q RSG 62 Packet-;Pg.;158�, REPORT TO THE CITY COUNCIL Amendment No 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Table E-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 E-2 below. Summary of Project Tax Increment Revenues Table E-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 7/15/2034 IL Forecast Cumulative M IL d - c Gross Tax Increment Revenue $ 254,800,170 Less:20%Gross Tax Increment Revenue to Housing Fund 50,960,034 6 c 0 Non-Housing Fund m Total Revenue to be Deposited into the'Non-housing Fund 203,840,136 0 Less:Taxing Agency Payments (per Agreements) 9,695,116 Q, Less:County Administered'Agreements 75,860,991 0- Q Less:'StatutoryPayments (per HSC 33607.7) 16,370,516 Less:Non-housing Debt Service 6,613,187 0 171,161,317 N Housing Fund. o Total Revenue:to be Deposited into the Housing Fund 50,960,034 r"I Less:Housing Debt Service 1,906,361 m 49,053,673 d E Total to Agency for Future Projects 220,214,990 Non-Housing Fund 171,161,317 a Housing Fund 49,053,673 c d Net Present Value of Non-Housing.Fund 4.41:059,473 E s ea The total projected revenue that may be available.to the Agency to fund-project costs is approximately$220.2 Q million, consisting of $49 million for affordable housing, purposes and $171.2 million for non-housing purposes.As shown above, the net present value of the non-housing fund as a result of Amendment No. 6, or the -value of these future revenues in 2010.dollars, has been estimated at $44 million. These projected revenues are compared to total project costs in the following section. RS:G 63 -�PacketPg1;59- . 8.C.d REPORT TO THE CITY COUNCIL Amendment No.6 to'the Redevelopment Plan for the Grand Terrace Community Redevelopment Project 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 A 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. Table E-3 below documents the projected sources and uses of tax increment revenue projected from the Project Area Without Amendment No. 6 and illustrates the Agency's need to extend and increase financial limits in the Redevelopment Plan. Sources and Uses Table E-3 Grand Terrace Community Redevelopment Project Area �- a Housing Non-Housing Total c co Sources1 d� Tax Increment Revenue' 2,511,626 5,124,246 7,635,872 p J Total Sources 2,511,626 5,124,246 71635,872 10 Uses Q. a Affordable Housing Programs 5,616,000 5,616,000 Public InfrastructureMetlands Remediation 17,500,000 17,500,000 r Miscellaneous Revitalization Programs 300,000 300,000 Ongoing Project and Program Costs 2 7,464,936 7,464,936 'o ml Total Uses 5,616,000 .25,264,936 30,880,936 T c m 1 Curr datl%e taxincrement re%enue projected to be received behsen fy2009-10 and fy2011-12 based on current Redewiciprnent Plan limits. E .� 2 These costs include capital projects and econonic development overhead and adrrinisVatlue casts over the life of Plan,net present valued at �0 Q +.i The amount of funds expended on projects would exceed the $7.6 million of revenue expected to be E generated by the Project Area under the current Redevelopment Plan limits, but would not exceed the amount ,c 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 Q period for the Agency to collect tax increment. As described in Section A, when inflation, interest and administration costs to implement proposed proiects are applied to the $25.3 million in non-housinq costs above, the total cost for non-housing proiects and programs to remediate remaining blighting in the Proiect Area is approximately $44:million (Table A=4),_which is very close.to the net present 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 overtime. 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 RSO, 64 ,Packlet_Pg: 160 RE-PORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project government to assist residents with property improvements. Tax increment is also used to provide 1ncen.tives for the private sector to invest in the -area and revitalize the-local-economy. The physical and economic impairments on the Southwest Commercial $ite have prevented the development of the.property. The City's General Fund revenue is insufficient to alleviate the blight within the Project Area. Amendment No. 6 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 E-4 on the following page presents a.comparison of the funds that could be available to the City and Agency,with.and without Amendment No. 6. a a c - eo c O J d O C. C. Q v M N N N O - m - C _ d ..0 - Ct R a c d E '_ v cc - - a .q:RS:G 65 ,Packet,:P:g. 161~ -- REPORT TO THE CITY COUNCIL Amendment No 6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project Projected Property Tax Revenues with.Existing Limits vs.Proposed Limits Table E-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 19.2558% 19.2558% 2009-10 $ 2,525,878 $ 301,068 $ 2,826,947 $ 2,525,878 .$ 301,068 $ 2,826,947 2010-11 $ 2,330,965 $ 305,670 2,636,635 $ 2,330,965- $ 305,670 2,636,635 2011-12 $ 2,278,295 $ 310,432 2,588,727 $ 2,278,295 $ 310,432 2,588,727 2012-13 $ 500,733 $ 1,492,963 1,993,696 $ 4,482,595 $ 315,361 4,797,957 2013-14 $ (254,848) $ 1,774,796 1,619,948 $ 4,656,155 $ 320,463 4,976,618 2014-15 $ (254,848) $ 1,835,215 1,580,368 $ 4,820,026 $ 328,816 51143,842 2015-16 $ (254,848) $ 1,897,749 1,642,902 $ 4;989,829 $ 337,461 5;327,290 p 2016-17 $ (254,848) $ 1,962,472 1,707,625 $ 5,165,776 $ 346,408 5,512,184 M 2017-18 $ (254,848) $ 2,029,460 1,774;613 $ 5,348,085 $ 355,669 5,703,754 d cn 2018-19 $ (254,848) $ 2,098,793 1,843,9.46 $ 5,536,984 $ 365,254 5-,902,238 2019-20 $ (254,848) $ 2,170,553 1,915,705 $ 5,732,707 $ 375,174 6,107,881 2020-21 $ (127,424) $ 2,244,824 2,117,400 $ 6,062,921 $ 385,442 6,448,363 c 2021-22 $ - $ 2,321,694 2,321,694 $ 6,400,454 $ 396,069 6,796,523 :0 2022-23 $ - $ 2,4.01,255 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 Q. 2024-25 $ - $ 2,568,828 2,568,828 $: .7,077,349 $ 430,234 7,507,583 CL Q 2025-26 $ - $ 2,657,039 21657,039 $ 7,319,435: $ 442,428 7,761,863 2026727 $ - 2,877,235 2,877,235 $ 7,570,237 '$ 455,050 8,025-1287 M 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 c 2029-30. $ - 31041,855 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 m 2031-32 $ - 3,255,055 3,255,055 $. 8,966,254 $ 525,101 9,491,365 2032-33 $ - 2,477,286 2,477,286 $ 6,653,820 $ 445,079 7,098,900 = 2033-34 $ - 265,413 265,413 $ - $. 265,413 266,413 Cumulative 5,724,515 51,703,337 57,427,852 144,353,999 9,787,597 154,141,596 Q NPV@6% 5,576,780 23,088,054 28,664,834 .66,561,783 4,718,130 71,279,913 C d Notes: E r 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 Q must be accrued from remaining tax increment revenue unless plan 2/ Taxincrementto City reflects:a)Citys 19.2558%share of taxes from Project Area base year value, b)Citys share of statutory payments from redevelopment tax increment revenue,and c)Citys hare of propertytaxes after existing limits expire. SUMMARY 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. Amendment No. 6 will increase the limit on tax increment that may be collected by the Agency from $70 million to $225 million to address this shortfall. Without Amendment No. 6, the Agency would reach its tax increment limit in fiscal.year 2012=13 instead of 2032-33 for the Original Area and 2033-34 for the Added Area. Amendment No. 6 also increases the limit on amount of bonded indebtedness that may be collected from $15 million to $75 million .RS;G 66 Packet•'Pg. 1162 'REPORT TO THE CITY ,COUNCIL Amendment No.6 to.the Redevelopment Flan for the Grand Terrace Community Redevelopment Project and repeals the time limit to incur'debt in order to ensure that advanced funding can,be secured to implement redevelopment projects�in a timely matter. a a d a� - eo oM - c _J d O Q O. _Q M O • N N N O m _ d 1= -t R Q _ d s - ca ' Q 67 • „"Packet Pg:,163, .SECTION F = Method: of Relocation This Section sets forth the general.policies for the administration of the relocation program and-the:provision of services and' benefits to displaced families, individuals, businesses, and community institutions. This document should be considered as only a general plan. As recommended in an October 1982 State Department of Housing and .Community Development study entitled "A Study of Relocation and Housing Development in California Redevelopment Agencies," a comprehensive and .detailed plan need -not be developed until relocation is imminent. At that time, a more.specific analysis will be prepared, pursuant to Title 25, Section 6038 of the California Administrative Code. STATUTORY REQUIREMENTS a Section 33352(f)of the Redevelopment}Law requires that this Report.contain: a A method or plan for the relocation of families and persons to be temporarily or.permanently displaced from � housing facilities in the project area, which method or:plan shall include the provision required:by Section 3341.1.1 of the Redevelopment Law that no persons or families of low or moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or c family at rents comparable to those at-the time of their displacement. .°J CL 0 ANALYSIS a It should be noted at the outset that the Amended and Restated Redevelopment Plan does not contemplate Q the imminent relocation of any-households or businesses to accomplish its goals. Furthermore, relocation will only be used if it is reasonably necessary to redevelop a property. The Agency would not commence any relocation until.it has firm commitments from public funding sources or competent developers that the-desired c redevelopment of the area will take place in a timely manner and with the least disruption to existing homes and.businesses reasonably necessary. m The Agency has established a method and plan for relocation of families and persons to be displaced in aa) connection with any Agency project. The adopted Agency relocation policy complies with Section 33367(d)(7) of the Redevelopment Law, requiring.that redevelopment.agencies have a feasible relocation method or plan ec if'the Agency's plans for redevelopment are to result in the displacement of any occupants of housing or a businesses in the Project Area. 43 If relocation becomes necessary, specific relocation -plans containing detailed household and housing availability surveys, will be prepared at the.initiation of each particular land assembly or development project to.ensure that such conditions prevail at that time as well. Projects involving relocation will be authorized by M the Agency only if the specific relocation can ensure the availability of sufficient suitable and affordable 4 housing to.meet.the specific relocation needs created by the land assembly project. In:summary, it is reasonable to conclude that at the time of adoption of the Amended-and Redevelopment Restated Plan,the Agency-will have a feasibie.method of meeting-the maximum foreseeable relocation needs that may result.from implementation of the Amended and Restated Redevelopment Plan. RELOCATION POLICIES AND PROCEDURES In order to implement the California-Relocation Assistance Act in the Project.Area, the Agency has adopted for local. use the relocation guidelines issued by the State of California, Department of Housing and Community Development, pursuant to Government Code Section 7260 et seq. and Health and Safety Code Section 50460. These relocation guidelines:are set forth in the California Administrative Code, Title 25, Chapter 6. Subchapter 1 (Section 6000 et seq.), and are incorporated fully herein by this reference. 68 .Packet�P,g. 1,64.+r Relocation of displaced persons, families, and businesses within the Project Area will be accomplished in full compliance with the State guidelines as they currently exist or as they may be amended from time to time. It is the policy of the City Council and the Agency that: A. Redevelopment activities will be carried out in a manner which minimizes relocation and hardship. B. No persons or families of low-and rhoderate-income shall be displaced unless and until there is a suitable housing unit available and'ready,for occupancy by such persons that is safe, decent and sanitary_ and available at comparable rents. C. All displaced families and individuals will be afforded the opportunity to live in a decent, safe and sanitary dwelling without overcrowding., D._ The cost of such housing shall be reasonable relative to family income. E. There will:be no discrimination based upon race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in relocation activities. o. F. 'Displaced households'will be offered the opportunity to occupy housing that is reasonably accessible to n their places of employment,public transportation, shopping and public facilities. c m G: Business concerns and nonprofit organizations to be displaced will be provided assistance to aid in their satisfactory re-establishment with a minimum of delay and loss of earnings. o J H. Each eligible person and business will be provided information on availability and prices of comparable sales and rental housing and commercial properties. When necessary, counseling and referral service Q. will be provided. a Rules and :regulations detailing :procedures for providing services and making: payments will be made in M accordance with the above=rrieritioned guidelines and applicable state law. c N N N O METHODS FOR ASSURING AVAILABILITY OF RELOCATION HOUSING %_I The Agency will work with local housing authorities and nonprofit sponsors of other subsidized housing to m assist eligible persons ih applying for priority placement in affordable housing within the City. If, during the course of program implementation, it is :determined that adequate relocation housing is not available and 'cannot otherwise be made available, the Agency shall take action to develop such housing in A accordance with State.guidelines. Q . c d RELOCATION PAYMENTS _ v Relocation payments will be made to all eligible displaced persons, businesses and nonprofit organizations a pursuant to Section 7260 et seq. of the Government Code RS:G 60- Packet;Pg,165 SECTION G Analysis of the Prelimi.nary Plan Section 33352(g) of Redevelopment Law requires the inclusion of an analysis of the Preliminary.Plan for the Project Area. Amendment.No. 6 does not alter the boundaries of the Project Area, thus a Preliminary Plan is not required and was not prepared for Amendment No. 6. IL a c c 0 m 0 L Q. Q. a CO O - ml w c • - d E t �a Q c d E 1 � Q RS"G ' .Packet,Pg, 166_ 0-07 _ SECTION H Report of the Planning Commission Section 33352(h)of Redevelopment Law requires inclusion of a report of the.Planning Commission.of the City of Grand Terrace ("Planning Commission"). The Planning Commission adopted'its report on the conformity of the Amendment No. 6 with the City's General Plan on February4, 2010, by Resolution No. 10-01 which-is incorporated herein by reference. Pursuant to the Planning Commission's action., the Amendment No. 6 conforms to.the General Plan of the City of Grand Terrace, as it exists today or is hereafter amended. a - a d aM c co aM O J G1 O L Q. Q - Q v M O N N N O . m C _ d E •s R Q w c d E cc • - Q • RS G 71 ';,Packet Pg.167 SECTION Report of the Project Area Committee A Project Area Committee ("PAC') does not exist for.Amendment No. 6. Pursuant to Section 33385.3 of Redevelopment Law, a Project Area Committee ("PAC") is required if the Agency proposes to amend a redevelopment plan to: (1) grant the authority to,the Agency to acquire by eminent domain property on which persons reside in a project area in which a substantial number of low- and moderate-income persons reside; or (2) add territory in which a substantial number'of low-and moderate-income persons reside and grant the authority to the Agency to acquire, by eminent domain, property on which persons reside in the added territory. Amendment No.6 does not grant the Agency eminent domain authority to acquire property and thus does not require the formation of a PAC. In fact, one of the purposes of Amendment No. 6 is to rescind and terminate the Agency's current eminent domain authority that would have expired on August 22, 2011. However, City staff will be conducting a public information meeting as part of a City Council workshop to discuss the Amendment No. 6 with property owners, residents, businesses and other interested parties. This. o. workshop has been tentatively scheduled for March 9,. 2010. Notice of the workshop will :be provided via a) published notice in the San Bernardino County Sun and will be posted in several locations within the.Project Area. o� 0 m 0 c. a a co r O m, _ d E v l0 a _ E a Z.S. ,G 72: packet_, 168 SECTION J Statement of Conformance to the General Plan Section 333.520).of Redevelopment Law requires a report of General Plan conformance per Section 65402 of the Government Code. As set forth in Section H, on February 4, 2010, the Planning Commission adopted Resolution No. 10-01 finding that Amendment No. 6 is in conformity with the City's General Plan, as it exists now or is hereafter amended. • a a m aM - c e� >a c O ;J d . O C CL ' - Q - M N N Y N O tr m C d E •t C� R a s a 4 • Q RSG 73 t?acket`Pg 169� SECTION K Environmental Documentation Section 33352(k) of the Redevelopment Law requires the inclusion of the report prepared pursuant to Section 21151 of the Public Resources Code. An Environmental Impact Report ("EIR") is being prepared in connection with the Amended and Restated Redevelopment Plan for Amendment No. 6 and also for the City's General Plan Update by the Chamber Group, pursuant to California Environmental. Quality Act (Public Resources Code Section. 21000, et seq., "CEQA") guidelines. The Draft EIR is incorporated herein by reference. A.Final EIR will be completed in March 2010 and presented for Agency certification in April 2010. The Draft EIR reviewed all potential environmental impacts associated with the'City's General Plan Update and the implementation of the Amended Redevelopment Plan. Topics addressed in the Draft EIR include: air quality; biological resources; cultural and historic resources; hazards and hazardous materials; hydrology and water quality; noise; public services and utilities; and transportation and circulation. The Draft EIR also addresses'ali other topics and sections as required by CEQA. n The Draft EIR analyzes the significant short- and long-term impacts related to the General Plan Update and off. the adoption of the Amended Plan. The Draft EIR includes information gathered from a Notice of Preparation released on January 22, 2010, consultation with potentially affected entities, and available literature and reference documents. 12 6 The Draft EIR was completed and circulated for public review on January 22, 2010. Comments on the Draft c EIR will be due on March T 201Q. In accordance with the Agency's environmental review procedures, the —� Agency will consider certifying the EIR at a joint public hearing in April 2010. c L Q. SUMMARY OF ENVIRONMENTAL IMPACTS Q In general, the Draft EIR determines that Amendment No. 6 is fiscal and administrative in character and will, cq in and of itself, have no physical impacts in-the Project Area. The Draft EIR also states that because any future programs or projects proposed to be undertaken by the Agency must be consistent with the City's General Plan, the environmental analysis contained in the Draft EIR with regard to the General Plan update adequately considers potential impacts related to the redevelopment plan amendment component of the opl project. m The Final EIR will include responses to comments received during the 45-day review period. It will be E considered by the City Council and Agency Board for certification prior to the joint public hearing scheduled for April 2010. Q w c d E �a Q • R:SG 74 Packet,Pg. 170 SECTION L Report of the County .Fiscal Officer A report of. the San Bernardino County Auditor-;Controller prepared in accordance with Section:33328 of Redevelopment Law is.not.required=for Amendment No..6 because the boundaries of the Project Area-are not being altered. IL A 0 aM c M 0 m . y . 0 a a Q v M Q N N O c d E - t V cc . Q d.i " c d E s ea Q 75 : SECTION M Neighborhood Impact Report Redevelopment Law requires that a Neighborhood-Impact Report discuss the impact Amendment No. 6 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 ezpeeted 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 a replacement housing.objectives. a - m CO c RELOCATION a� The Redevelopment Plan authorizes the Agency to acquire certain non-residential property using eminent c domain before .July 22, 2011. However, Amendment. No. 6 will rescind the Agency's eminent domain —i autho.rity. If relocation.is required h connection with redevelopment activities, the Agency will adhere to and c follow the Method of Relocation referenced in Section F of this Report. a a a TRAFFIC CIRCULATION 0 The Redevelopment Plan permits the Agency to implement projects to improve traffic circulation, some of which .are mentioned- in Section A of 'this Report. Amendment No. 6 will allow the Agency to fund o 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 m traffic deficiencies, and:provide general benefits to the Project Area consistent with the circulation element of m the General Plan and other related.documents. E s v An Environm.ehtal Impact Report for the General Plan Update and Amendment.No. 6 has been prepared and will be reviewed by the Agency and City Council in April 2010. It.w_ ill explain traffic circulation impacts in more a detaik c d E ENVIRONMENTAL QUALITY ea Amendment No. 6 will modify the Redevelopment Plan to comply with:the General Plan.or..other related land Q 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"). As stated in Section K .of this Report, the Draft EIR determines .that Amendment No. 6 is fiscal and administrative in character.and will, in and of itself, have no physical impacts in the Project Area. The Draft EIR also states that because any future programs or projects proposed to be undertaken by the Agency must be consistent with the City's General Plan, the environmental analysis contained in the Draft:EIR.with regard to the .General Plan update adequately considers potential impacts related to the redevelopment plan amendment component of the project : .: :RSO 76 'Packet'Pg:,1.72' ac.a REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project AVAILABILITY OF COMMUNITY FACILITIES AND SERVICES Amendment No. 6 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. Impiementation of the Redevelopment Plan and its proposed projects are expected to improve the City's existing community facilities and,services. Amendment No. 6 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("District"). Future redevelopment in the Project Area would be consistent with the City's General Plan and could result in [L the generation of additional school-age children and raise demand for educational services. Pursuant to n. 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. W 6 The District receives pass through.payments pursuant to an existing fiscal mitigation agreement that provides o for a full (100 percent) pass through of the tax increment revenue generated-from inflationary adjustments to —� the Project Area's base year value. The supplemental tax increment agreement between the Agency and the c District provides that the Agency will use tax increment revenues generated in the Project Area for park Q, improvements to Richard Rollins Park and athletic field improvements for Terrace Hills Middle School. °L S 'co PROPERTY TAXES AND ASSESSMENTS- N The Redevelopment Plan calls for various methods of financing its implementation. Because redevelopment .04 agencies do not'have the constitutional authority to impose taxes, implementation of the Redevelopment Plan ml 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 m property tax revenues generated, by increases .in the assessed value of•property in the Project Area. E t 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. Q w d LOW AND MODERATE INCOME HOUSING PROGRAM E .c 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 Q 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 1101 77 -Packet Pg.173 8.C:d REPORT TO THE CITY COUNCIL Amendment No.6 to the Redevelopment Plan for the. Grand Terrace Community Redevelopment Project 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 Amendment No. 6. 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 that permit residential uses and any new units may be constructed in areas within the Project Area where such uses are permitted. D. Number of Dwelling Units !-lousing Persons of Low and Moderate Income Planned for Construction or Rehabilitation Other than Replacement Housing The Agency is required#o allocate 20 percent of the tax increment generated by the Project Area to increase, improve and preserve the community's supply of 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 ii time; however,the Agency will implement a housing program that addresses the housing needs and problems 2 of the Project Area pursuant to the Housing Element of the City's General Plan. The Implementation Plan a) m contained in Section C of this Report.lists specific affordable housing activities proposed from 20.10 - 2014. According to the 2010-2014 Implementation Plan, included in Section C of this Report, 45 housing units are projected to be constructed or substantially within the Project Area between 2010 and 2014. Of this amount, 6 7 units are expected to be available for low income households, and 3 units would be available to very low c income households during the next five years. —i m E. Projected Means of Financing Rehabilitation and New Construction of Housing for Low and Moderate a Income Households C The Agency, intends to utilize not less than 20 percent of its tax increment revenues to finance the M .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 c tax increment set aside funds if it is determined to be necessary by both legislative bodies in order to improve ml the City's affordable housing stock. m 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, Amendment No. 6 a includes the removal and elimination of the Agency's eminent domain authority in the Project Area. However, c 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 Q housing fund revenues. Rehabilitation activities will be gradually phased over the duration of the Redevelopment Plan. 78 Racket Pg. 174 -/ ��U�� ' SECTION ��- ' ~~u''^^'~^ y of Agency's ^~~^^~u'^-^'~''~ with Affected Taxing" "-^^""~'^" ' and Response to Said Entities- Concerns Regarding the: Ran ' Amendment Adcdtding to reports obtainadfrom the Cbm ofSanBerhardinm -Offioe, the following taking agencies are affbct6d.by the proposed Am'endment No. G: ( / " Colton Joint Unified Sdh o District. . San Bernardino Community College. � 8an.Barhnnd|no County Superintendent of Schools � San Bernardino:County Fire Protection-District IL � Riverside Cordno Resource.Conservation District ° Sari:Bernardino Valley K8dnicipo|Water District' � San Bernardino:County Library tM� San Bernardino County Flood Control Distd �ct ' ~x � Co6ntyof San Bernardino CL p City of Grand Terrace _ On January 21. 3010. themfectedtanOg agencies shown above vme[e.oento copy of both the Preliminary . , Report and the Draft Amended and Remdatd � .R|edeve|opnn�nL As o part of each nfthese mailings, the cm AQenhy offered to consult with the affected taxing agencies pursuant to Sentioo3332D of Redevelopment Law. No responses were received onof February 1. 2010. |f the Agency-receives a response in the future, : , Agency-staff viUnotify the City Coonci| and.the Agency Board. m8' The Gbsbe Department pfHousing and Urban Development and Department of Finance were also sent on January-21, 2010 a copy of the Preliminary Report(also acting as the report required by Redevelopment Law section 33451,$ (o). the Draft Amended and Re§tabed:Re6eve|opmentP|an' and a notice of the joint public hearing. No responses were race|vadanof February 232O1O. |f the Agency receives a response |nthe - future,Agency staff will.notify the City Council and Agenny800md� -~ The Agency will transmit o notice oftha April 27. 2O1 joint public hearing to.all offenbedtaxing agencies on March 4.2O10. The Agency will again offer to consult with the affected taxing agencies. . = � ' R5~- | '" APPEN'®IX A, Five-Year_Implementation Plan For The Grand Terrace Community Redevelopment Project Area o. a d a� c� a� _ 0 m .o L Q. 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LL Won Y 'ITIT Q . a FeeE USAC Jurisd:c ions areas i4�ieliael'Br`andmai Associates - -r 338500Q4 '0312gA8'.)1_iiSacemxd dUR18D1Cf10 G.RRND TOR Ar=. ' -' �tAL'ASSESS(��ly;f .(dWd a6uea=6doj:enoaddd) uawyCw- aet/ EXHIBIT "A„ ` ;. Legal Descriptions a In:the City of Grand Terrace, County of San Bernardino, State of California EASEMENT 1' Those portions-of Parcels 2 and 3 as described in a document recorded October 28, 1997 as instrument No. 19970394085 of Official Records of said County, described.as �. follows: Commencing-at the intersection.of the centerline of Taylor Street and the centerline of Pico Street; as shown on a Record of Survey-filed in_Book 110,-Pages 84 through 88, inclusive, of Records of Survey of said;County, said point also being on the southerly prolongation:of the easterly.line of said Parcel 2; thence northerly.along said prolongation and the easterly line of said parcel,, North 00702'17" East., 540.00 to the True=Point of-Beginning; thence leaving.said easterly line and,parallel with the southerly line of.said:Parcel 3, South 89°5.3'09"West, 1.65.0.0 feet; thence the.following courses:- South 00002'17"West, 230.62 feet; North.89"57'43"West, 484.27 feet; to the westerly line of said Parcel 2;: Thence along said westerly line, North 02°.05'21"East, 93.73 feet.an angle point therein; thence continuing along said:westerly line of Parcel 2 and also the westerly line of:said' Parcel 3, North 1604844" East, 660.07 feet to the beginning of a curve concave southeasterly-and-having--a-radius of 248.00 feet;thence northeasterly along said curve and northwesterly line of said Parcel 3 an arc distance of 215.02 feet through_a-central angle of 49"40'36":,thence North 650,59'20" East, 354.73 feet to the most'northerly corner of said Parcel 8; thence,along said.easterly line of said last mentioned parcel, South.00002'17"West,43.80-feet to a line parallel with and 40.601eet southeasterly,: measured at a-right angle, from the.above referenced-line having a bearing and length of:"'North 65059'20"-East 354.73"'"; thence along said parallel-line,,South 65059'20" West,.180:68.feet; thence parallel with said easterly line of Parcel:3,.South 00°02'17" West, 630.77 feet to a line parallel with and 50.00 feet northerly, measured at:a right angle,from the above referenced line having a bearing and length-of" South 89'53'09" West 165:00"; thence along-said parallel line,:North 89053'09" East, 165.00 to.said' easterly line of:Parcel:3; thence along said easterly line,'South 0000217"West, 50.00 feet to the True Point,of Beginning. Contains 8:066 Acres, more.oc less As shown on.Exhibit 'B"attached hereto and by this .reference made.a.part hereof ' I r_ WAM 96ueH-6uo-j anojddd) uoildubs'ea 4uatuase3 uleia,[uJo;S-a;uaw.tjoe :;uawyae b EASEMENT 2 a A variable width strip,over a portion of Parcel 7 as described in a document recorded .a October 28', 11997 as-Instrument No..19970394085 of Official.Records of said.County, the LM centerline of which is-described as follows: Strip 1 (75.00 feet wide - 37.50 feet on each side of:the following described line) Commencing at the intersection of the centerline of Taylor:Street and the centerline of Pico Street, as shown on a Record of Survey filed in.Book 110, Pages 84 through 88, inclusive, of Records of Survey of said'County, said point also being pp the southerly prolongation of the easterly line of Parcel 2 as shown on said Record of Survey; thence northerly along said prolongation and the easterly line of said Parcel 2, North 00°02'17" East, 565.00-feet to a line parallel'With and 97.35 feet southerly, measured at a right angle,'from the.northerly line of said Parcel 7; thence along said-parallel line, South 899.53'02" East, 4&00 feefto the westerly line of said Parcel 7, being the True Point-of Beginning; thence leaving.said easterly line and parallel with said northerly line of Parcel 7, South.89°53'02"West, 208.32' feet#o the beginning.of a curve concave southwesterly and:having a radius of:57.50 feet; thence southeasterlyalong said curve an arc distance of 90:24 feet through a central-angle of 89055'19W`;.thence South 0090217"West. 271.04.feet to the beginning of a curve concave northeasterly and having a radius of 90.00 feet; thence southeasterly along said curve an art-distance of 14.95 feet through a central angle of 9'31'11" to a point'hereiriafter referred to as Point W, being the end of the described'centedine. Strip 2 (20.00 feet wide—10.00 feet on each side of the'following described are) Beginning at the above referenced Point"A", being a point on the,above described curve having a radius:of 9Q.00 feet, a radial line to said point bears South 80031 M."West; thence continuing southeasterly along said curve an arc distance of 55.06 feet through a central. angle of 35003'03"; thence South 44°31'57",E6st;,18.5.59 feet to the beginning of a curve concave northerly and-having a radius of 90.00 feet; thence'southeasterly along said curve arc-distance of 12.76 feet through a central angle of 8007'33'to the.north6dy line of Pico Street(Vacated) as shown on.said Record of Survey, being the end:of the described - centerline. The northerly line of said,20 foot wide strip shall terminate at the southerly line of said 79:00 foot wide strip-and the southeasterly line of said strip shall terminate-at said.northerly line of Pico Avenue. Contains'1..123 Acres, more or less As shown on Exhibit"B"attached hereto and by this-reference made a part.hereof Prepared under my supervision:, Exp. 31-13 David O. Knell PLS 5301 Date ' OF c �°� Z N011dl?��S3Q- lb'�3� o ;. OeF 3eIsAl�tAid 9eYo1650lD lelt{ ANVdWODDV Ol POLOYS r cioz-ic-co• ravu ,00ia.t�. ems• how; I. Z V3,N 1 AN3W3Sb3`NIA'&Q iNgp0 �< a G V38V 1ON SV3 NIV2O W2lO1S �� - s... ..may ' ._ um :� - - •`� 'I�� :�: a iris3,, , a ivov,'133211S o�z: � _ M 90 4£,09S' f ,Tu a .: ,V;:1NfOd` '''• M£ d5:68N•_ 4a 710 i aoo§ N :�19•. WT _ 6Pig9S�!`: Vos WSW £S.68N" 60 ON. m. z Mr, �7r SK , o- ,oq, -w ia- gaig, Rd Nil Attachment'Attachment D- -S torm Drain Easement Description (Approve Long-Range PMP) -$15,175,000 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT AREA TAX ALLOCATION 130.NDS ISSUE OF 2011A TAX CERTIFICATE a AL The Community Redevelopment Agency of the City of Grand Terrace (the `Issuer") hereby makes the following 'representations of facts and expectations and covenants to comply with the requirements of this Tax Certificate in connection with the $15,175,000 Community Redevelopment c� Agency of.the City of Grand Terrace, Community Redevelopment Project Area, Tax Allocation 0 Bonds, Issue of 2011A,(the "Obligations"). These represenlations and covenants are in furtherance of fire covenants contained in Section 5.17 of the Indenture of Trust, dated as of June 1, 2011 (the "Indenture"), entered into-by the Issuer and U.S. Hank National Association (the "Trustee"), and in a part are blade pursuant to Section 1.141-2(d)(2) and Section I.148-2(b)(2) of the Treasury a Regulations. Capitalized tenns used herein which are not otherwise defined herein shall have the respective meanings set forth in the Issuance Document. * t: m v 1 General Matters.. � (a) . Aulhority for Issuance. The undcrsi.gned and odrer officers and members of the Issuer are charged with the responsibility of authorizing and requesting the issuance of the ° Obligations. (b) 'Sale of Obligations. The Obligations are being delivered to Wedbush Secufflies-Inc. o as underwriter(the"Underwriter")on the date hereof. a (c) Purpose of-Obligations. The Obligations are being sold and:delivered for the purpose Qf (i) financing certain, capital costs of the Issuer as described in Exhibit A attached hereto (the ".Project"), (ii) paying costs of issuance with respect to the Obligations ((he "Issuance Costs'), and N (iii)funding a reasonably required reserve with respect to the Obligations. :w (d) Nature of Issue. All the Obligations are being sold and issued at the same time, have d been sold pursuant to the salve plan of financing, and are reasonably expected: to :be paid from s substantially the same source of.funds. Accordingly,_the Obligations are a single issue of obligations e"o for certain'federal income tax purposes relating to the exclusion from gross income of interest on the a Obligations. Within�15 days of the date hereof, the Issuer has sold its $5 650,000 Community Redevelopment Project Area, 'Taxable :Tax Allocation Bonds, Issue of 201113 (the "Other Obligations");.the Other Obligations will be considered a separate issue from the Obligations. Other than the Other'Obli,gations; no other governmental obligations, which are reasonably expected to be paid.from substantially the same source of funds, are being sold or issued at substantially the same a time and sold pursuant to the some plan of financing as the Obligations. DOCSOC/1 h9437801022092-0002 'Packet'Pg:'1'82, I.1 Private Activity. (a) Governmental Use of Proceeds. Absent an opinion of nationally-recognized bond counsel that the exclusion from gross income of iritei•est on the Obligations will not be adversely affected for federal income tax purposes, [lie Issuer will not allow any of the proceeds of the Obligations, or any refinanced obligations thereof, or any of the facilities financed or refinanced with such obligations to be used in the trade or business of any nongovernmental persons (other than in their roles as mernbers of the general public)and will not.loan any of the proceeds of the Obligations orany refinanced obligations to any nongovernmental persons: In furtherance of the foregoing, the Issuer represents the following with respect to the use of proceeds of the Obligations and the :a facilities.Cnanced and refinanced wherewith, tM c M (b) In General. No more than 10% of the proceeds of the Obligations or the Project ar (based on the cost of the components of the Project or, with respect to a-unitary structure, on the c relative fair rental value of such components) has-been or will be used in the aggregate for any J activities that constitute a"Private Use"(as such term is defined in Section(e) below). No more than e j0% of the principal of or interest on the Obligations, under the leans thereof or any underlying a arrangement,-has been or will be secured by any interest in property(whether or not the Project) used a fora Private Use or in payments in respect of property used fora Private Use,or will be derived from m payments in respect of property used for a Private Use. (c) No Privatc Loan Financing. No more than the lesser of 5% of the proceeds.of the v Obligations or S5,000,000 will be used.to make or finance loans to any person other than to a state or local governmental unit (other than. loans to finance any governmental tax or assessment of general r- application.for a specific essential .governmental function or loans that are used to acquire.or carry � Nonpurpose Investments(as such term is defined below)), c • m c A No Disproportionate or Unrelated Use. No more than 5% of the proceeds of the o Obligations: or (lie Project has .been or will be used for a Private Use that is unrelated: or disproportionate. to the governmental use of the proceeds of the Obligations (an "Unrelated or -Disproportionate Use"),and no rnore.than:5%of the principal of or interest on any of.the Obligations 4 has been or will be, under the terms of the Ofiligalions or any underlying arrangement, directly or :r.- indirectly; secured by any interest in property used or to be used for a Private Use that is an Unrelated or Disproportionate Use or in payments in respect of property used or to be used for a c Private Use that is an Unrelated or Disproportionate Use. `;t :w (e) 'Definition-of Private Use. For purposes of this Tax Certificate, the term "Private m Use" means any activity-that constitutes a trade or business that is carried on by persons or entities = other than governmental.entities. The leasing of property financed or refinanced with proceeds of the Obligations: or the use by or .the access of a person.or entity other than a governmental unit to a Pr of services on a basis other than as a member of the general public shall constitute a Private Use,' -s (f) Management and Service Contracts. - With respect to management and service M contracts, the determination of whether a particular use constitutes Private Use under this Tax Q Certificate shall be determined on the basis of applying the relevant sections of the Treasury Regulations.and Revenue Procedure 97-13. As of the date hereof,no portion of the proceeds derived from the said of the. Obligations is being used to provide property subjoct to contracts or other arrangements with persons or entities engaged in a trade or business (other than governmental units) 2 D O CSOC/1.4 943 7 8 0/022092-'0002 Packet-Pg. 1,83 that, involve the management of property or the provision of services with respect to property fiinanced or refinanced-by proceeds of the Obligations that do not comply with the standards of the Treasury l egulations or Revenue Procedure 97-13. M Arbitrage Certifications. The following,states the expectations of the Issuer with-respect to the amount and uses of the a proceeds of the Obligations and certain other monies or property: a (a) Source and Use of Funds. Tile total proceeds to be derived by the issuer from the sale of the Obligations, in the aggregate amount of$14,92G,4.6.1.35 (representing$15,175,000.00 face amount of the Obligations, less:net original issue discount of$115,757,40, and less Underwriter's c discount of$:132,78125)are expected to be needed and fully expended as follows: m ' o (i) $1.35,000.00 of such proceeds will be dcposited.in the Costs of issuance Fund a and,, together with investment earnings thereon, will be expended to pay Issuance Costs Q- withiri one year of the date hereof; a m co (ii) $1,280,893.88 of such proceeds will be deposited in the 2011A Reserve Subaccount and expended as necessary to pay principal and interest with respect to the d Obligations;and c� (iii) $13,510,567.47 of such'proceeds will be transferred to the Issuer for deposit H in the.2011A Subaccount of the Redevelopment Fund and such ariiounts, together with t.lte c earnings:thereon, will be utilized to pay Project costs. v (b) Over-Issuance. The total proceeds to be received by the Issuer from the sale of the ' Obligations, together with anticipated investment earnings thereon; do not exceed the total amount o necessary for the purposes described above. a c� (c) Temporary Peri.od.. The Issuer has entered into a binding obligation to expend:aHeast ~ five percent (5%) of the proceeds of the Obligations (less amounts deposited in the 2011A Reserve a Subaccount) on the Project. Work on the construction and acquisition of the Project will proceed N with due diligence to the completion thereof, and at least eighty-five percent (85%) of the proceeds ui derived from the sale of the Obligations, other than those held in_the 2011 A Reserve Subaccount, will be expended within three years of the date hereof on the Project. In furtherance of such covenant, absent an opinion of nationally recognized bond counsel that the exclusion from gross income of interest on the Bonds will not be adversely affected for federal income tax purposes; the Issuer covenants to expcnd all sale and investment proceeds of the Obligations (less amounts a deposited in the 2011A Reserve Subaccount and Costs of issuance Fund) on Project costs and not to d redeem Obligations. If and to the extent it becomes effective, the Issuer hereby elects to make the _ election provided under Assembly Bill No.27 and will take all appropriate action to implement such election. Q (d) Funds and. Accounts. The Issuance Document (or other document) creates and establishes oc continues the following funds and accounts with respect to the Obligations: (i) the Debi Service Fund,and within such fund, 3 DOCSO CJ 14-94 3?801022092-0002 f?acket Pg. 184.. (1) the 2011A Interest Subaccount, .(2) the 2011 A Principal Subaccount, (3) the 201 ]A Reserve Subaccotmt, and (4) the Redemption Account; (ii) the Costs of Issuance Fund; a CL :(iii) the Special.Fund; (iv) the Redevelopment und; and a� M the Rebate Fund. (e) Sinking:Funds. L - a c. (i) Bona Fide Debt Service Funds'. The 201 IA Interest'Subaccount, the 201 IA a Principal SubAceount, and the Redemption Account of the Debt Service Fund, and the Special.Fund-(to the extent such fund will be depleted every Bond.Ycar) (collectively, the "Bona Fide Debt Service )Funds"), will be:used primarily to achieve a proper matching of revenues(and certain other monies)and payfnents.of principal and interest-with respect to the v Obligations within each year. Amounts deposited in the Bona Fide Debt Service-Funds will X be depleted at least once a year except For a:reasonable carryover amount, if any, which, in y the aggregate, will not exceed the greater of.(i)one year's. earnings on such funds for the V immediately preceding Bond Year,.or (ii) one-twelfth of the annual debt service with respect m0 to the Obligations for the immediately preceding Bond Year. � 0 w 0 (ii) Reasonably Required Reserve. Amounts deposited in the 20.1IA -Reserve c Subaccount wilt not be greater than the least of(1) maximum'annual debt service with respect a to the Obligations, (ii) 125%of average.annual debt service with respect to the Obligations, X or-(iii) 10%of the faceainount of Obligations (less original issue discount if in excess.of two a percent (2%) of the stated redemption amount at maturity) (the "Tax Reserve Limit"). The Underwriter has.represented that the Tax Reserve Limit was reasonably required, was a vital N factor in marketing the Obligations, facilitated the marketing of the:Obligations at an interest W ram,colnparable to that of bonds and other obligations of a similar type and is not.in excess of � the amount.corisidered necessary for such purpose- E s (iii) No Other Proceeds. Other.tlian the Bona ride Debt Service Funds,the 201 lA Reserve Subaccount together with other accounts in the.Reserve Account.and possibly the Q Redemption Account, there are no funds or accounts ofihe Issuer established pursuant to the Issuance Documdnt, or otherwise, that are reasonably expected to be used for the payment of = principal and interest with.respect to the Obligations or that ate:pledged as collateral for the Obligations and for which there is a reasonable assurance that amounts-on deposit therein will be available .for the payment of:principal and interest with respect to-the Obligations.if a the Issuer encounters financial difficulties. There are no amounts held under any agreement to maintain amounts at a:partieular level-for the direct or indirect benefit of the holders of the Obligations or guarantor of the Obligations, if any, excluding for this purpose amounts in Which the Issuer(or a substantial-beneficiary) may grant rights that are superior to the rights 4 DOCSOC/14943 780/022092-0002 'Packet'�P.g:185 of the holders of the Obligations or guarantor of the Obligations, if any,and amounts that do not.exceed reasonable needs for which they arc maintained and as to which the required level is tested no more frequently than every six months and -that may be spent without any substantial restriction other than a requirement to replenish the amount by the next testing date. The tei-1n of the Obligations is not longer .than is reasonably necessary for the governmental purpose of the issue, and the weighted average maturity of the Obligations does not exceed 120 percent of the average reasonably expected economic life of the Project. (f) Reimbursement. No portion of the proceeds of the Obligations are being used to ii reimburse the Issuer for any expenditures that were incurred and paid thereby with respect to the a Project prior to the issuance of the Obligations. (g) Working Capital. No operational expenditures of the Issuer or any related entity are to be financed directly or indirectly with proceeds derived from the sale of the Obligations. c J (h) Rebate Liability Account. ,Amounts deposited in tlic Rebate Fund are to assist the c Issuer with compliance'of Section 148(o of the Code. c c. a , (i) Investment. The proceeds derived from the sale of the Obligations and the alnourits on.deposit in the,aforementioned funds and accounts may be invested as follows: 0) Proceeds: derived from the sale of the Obligations held in the Costs of Issuance FU'nd; or in the Rebate Fund, will be invested in Tax-Exempt Obligations (as v - defincd in.SediionIV). X (ii.) Amounts held,in file 2011A--Reserve Subaccount, not in excess of the Tax Reserve Limit;may be invested without regard to yield. v (iii) Amounts deposited in the Bona fide Debt Service Funds may be invested at an ultrestrietcd yield,for a period not in excess of 13 months from the date of deposit of such o amounts to sucli'funds. Amounts described in the previous sentence that may not be invested Q at an unrestricted yield pursuant to'such Subparagraph shall be invested either at a yield not in.excess of the yield on the Obligations or-in Tax-Exei:npt Obligations(as defined in Section a IV). 0 N (iv) Proceeds of the Obligations held in the Redevelopment Fund to payProject ui costs will be invested ih:Tax-Exempt Obligations. d E (v) Amounts held in the--Rebate Fund (not described above) may be invested without regard to yield. (vi) Amounts held in the Redemption Account (not described above) will be invested,in Tax-Exempt Obligations. E s Notwithstanding any other provision in this Section 111(i), amounts Held for not more than 30 Q days- pending reinvestment or bond redemption shall be treated as invested i.rl Tax-Exempt Obligations.. (j) Yield., For purposes of this Section III of this Tax Certificate, yield is calculated as set forth i» Section 148 of the Code and Section 1.148-4 of the Treasury Revelations. Thus, yield S D 0 CS 00149437801022092-0002 Packet .generally means .that -discount rate which when used in computing the present value of -all unconditionally payable payments representing principal, interest, and the fees of qualified guarantees paid and to be paid..with respect to the-Obligations produces an amount equal to the issue price of the Obligations. The issue price of the Obligations is.$15,059,242.60 which is equal to the initial offering price.of the Obligations:to the public (excluding bond houses, brokers and similar persons acting in the capacityofunderwriters or wholesalers) at which a substantial amount(at least 10 percent) of each maturity .of.the Obligations was or is rcasoriably expected to be. sold, as represented by the Underwriter in Exhibit C. Yield with respect to the obligations allocable to proceeds of the-Obligations, is that discount rate which when.used in computing the present worth of IL the payments.of principal and interest with respect to the obligations produces an amount equal to the :a purchase price of the obligation, IM �a (i) IrivesG7tent.Contract; The issuer has not invested any groceeds of the Obligations pursuant to:an:investment contract (within the meaning of§ 1.148-1(b) oC the e Treasury Regulations). In the event the Issuer acquires an investment contract with any of the proceeds of the Obligations, the Issuer and the provider of the investment contract will c make certain representations in compliance with § 1.148-5(d)(6)(iii) of the Treasury a Regulations. B _ m (k) Yield.Reduetion Payments. Notwithstanding;thc.provisions,of Section I1I(i) above that require the Issuer to invest proceeds derived from the sale of the _Obligations and investment earnings. thdti;on at a ,yield not in excess of the yield on the Obligations,, the yield-on certain v rtonpurpose investments acquired with ,proceeds of the Obligations will' not be considered to be -Higher than the applicable yield limitation described in Section JII(i).above if the-Issuer makes"yield t- reduction payments" to the United States 'treasury at the time and in the.amounts described in § :c 1..148-5(c) of the Treasury Regulations.- The Issuer covenants to retain and consult with Bond �o :Counsel prior to making any "yield reduction payments" pursuant to § 1.148-5(c) of the Treasury c Regulations. Absent an opinion of nationally recognized bond counsel that the exclusion from gross income ofanterest on the Obligations will not be adversely affected for federal income tax purposes, c the Issuer will not Enter into any hedges(including swaps or caps)with respect to the Obligations. a x (1) No Artifice or Device. The Obligations are not and will.riot be part of_a transaction or series-of transactions (i)that attempts to circumvent the provisions of Section 148 of the Code, or any successor thereto,and the regulations-promulgated thereunder or under any predecessor thereto, N enabling the Tssuer or any related.person to- exploit the difference between tax-exempt-and taxable interest rates to gain a material-financial advantage and (ii) that increases the burden on the market AU for tax-exempt obligations iti any maruier, including, withodt.limitation, by selling Obligations that E would not otherwise be sold, or selling more_Obligations, or issuing Obligations sooner, or allowing ,E Obligations to rernain outstanding longer, than otherwise would be necessary. - C _ _ d .IV Rebate Compliance. E R (a) Covenants. -Thd Issuer hereby covenants to comply witli the rebate requirements of a :Section 148(f)of the:Code. The .Issuer acknowledges :that the United :States Department of the Treasury has, issued certain regulations with respect to certain requirements relating to compliance with.Section 148(0:of 6 DOCSOC/1 4943 780/022092-0002 Y:Packet�_P,.g.1�87.' the Code. The Issuer covenants that it will determine precisely_ what is required with respect to Section 148(f) of the Code and will comply wish.any requirements applicable to the:Obligations. The Issuer acknowledges that, to the extent that an exception to the rebate requirements of Section 148(f) of the.:Code is not available with respect to the Obligations, under Section 148(f) of the Code, the ,federal government must be paid the sum of (i) the-excess of the amount earned on all "nnpurpose investments" with respect to the Obligations over the amount that would have been earned had such investments been invested at a'rate equal to the yield with respect to the Obligations, plus:(ii)any income attributable to the excess.described in (i) (the"Rebate Requirerhent"). CL The Issuer acknowledges that currently,- unless an exception to the Rebate Requirement is available, compliance with Section 1.48(t) of the Code generally involves, a multi-step process: (I)ascertaining the funds (the "Gross Proceeds") and investments ([he "Nonpurpose Investments") 5 subject to the Rebate Requirement of Section 148(o of the Code a-Rer applying, if applicable, a c universal cap with respect to the Obligations (the "Universal Cap"),-(2)creating an investment � hisiory cash flow report with respect to the investment of Gross Proceeds of the Obligations, c (3) determining the yield with respect to the Obligations(the"Yield"), (4) future valuing receipts and a payments in the cash flow report(including certain deemed receipts and.payments)using the Yield as Q the discount factor, and (5)determining, the amount of relatable arbitrage with respect to the Obligations and paying the appropriate amount to the United States Treasury. See Treas. Rcg. §§ I.1.4870 through 1.148-11, 1.149(d)-l. and 1,150-1 for rules with respect to rebate compliance methodology. See Subparageaph:(b)(i) below for a.description of Nonpurpose Investments with D respect to the Obligations, Subparagraph-(b)-(ii) below for a description or Gross Proceeds of the x Obligations, Subparagraph (b)(iii) below-for the description of a Universal Cap w0h respect to the �. Obligations, Subparagraph (b)(iv) below for a description ofYield with.respect to the Obligations for V purposes of compliance with Section 148(t) of-the Code; and Subparagraph(d) witli respect to o_ permitted investment.of.Gross Proceeds. The Issuer also acknowledges that additional or different requirements may be applicable to co the Obligations if certain exceptions are satisfied. See Paragraph (c)herein. - a (b) Operative Terms. X t- - Q (i) Nonpurpose Tnvestinents. Subject to the limitation in Subparagraph(b)(iii) c below,Nonpurpose Tnvestments are:generally securities, obligations,annuity.contracts or any N other investment-type property that are not acquired to cant'out the governmental purpose of w the Obligations that are allocated.to Gross Proceeds. However, Nonpurpose lnvestmetits do C not include: E s v R (A) United States Treasury-State and Local Government Series,Demand a Deposit Securities;or - d (13) Tax:exempt obligations. Tile term "tax-exempt obligations" for the E purposes of this Tax Certificate includes (i) obligations the interest .on which is excludable from gross income for federal:income tax purposes, and-not treated as an Q item-of tax preference under, Section 57(a)(5)(C): of the Code, .(ii) an interest in a regulated investment company to.the:extent that at least ninety-five percent.(951/U)of the income to the holder of the interest is excludable. from gross income under Section 1.03 of the Code,.and (iii) a certificate of:indebtedness issued:by the United DOC;S00 14943780/022092=0002 ,.,Packet Pg.-188_ t3,"C—gig=— Statcs Treasury pursuant to the Demand Deposit State and Local Government Series program described,in 31 ChR d'art 344. (ii) cross Proceeds. -Subject to the ]'imitation in Subparagraph (b)(ii-s) below, "Gross Proceeds"--with respect to the Obligations means: (A) amounts actually or constructively received froth the sale (or other disposition) of tile.Obligations; IL (B) amounts actually ok constructively received 'from investing amounts a described in (A); -ai t .(C) amounts .(other than proceeds derived from the sale of the , Obligations) that are reasonably expected to be or are in fact used to pay debt service c with>espect to the Obligations; - —� d (D) amounts pledged as security for the payment of debt service with Q. respect to the Obligations or otherwise serving as a reserve fund with respect to die a Obligations; d (E) "transferred proceeds"of the Obligations;and ( ) any other amounts which are replacement proceeds of the Obligations v within the meaning of Treasury Regulation § 1.148-1(c), (iii) Universal Cap. Except as provided below; in no event shall the value of o Nonpurpose Investments allocated-to Cross Proceeds of the Obligations exceed the Universal. m -- Cap of the Obligations computed in accordance with Section 1.148-6 of the Treasury c Regulations. Thc•Universal Cap of the Obligations is equal to the .value of the outstanding Obligations.computed in�accordance with Section t-148-4 of the Treasury.Regulations. Tile o value of a Nonpurpose Investment on a date allocated to Gross Proceeds of the Obligations a for this purpose is equal to the value of.such investment in accordance with Treasury Regulation § 1.148-5(d): The Universal Cap value and the value oMonpurpose Investments Q arc to be computed as of the first.day of each Bond .year that commences after the second c anniversary of.the issue date and if. the applicable obligations, are a refunding issue, as of c14 each date that, without regard to the Universal Cap, proceeds_of any refunded issue become ui "transferred proceeds". bf the Obligations. within the meaning of Section 1.148-9 of the Treasury ].pgulations (a "Cap Computation Date"). Amounts described in Subparagraph (c)(i) are not subject to the .Universal Cap. Between Cap Computation Dates, Non purpose Investments cease to be allocated to the Obligations to the extent they are a expended or otherwise cease to be allocated to'the Obligations under.Section 1.148-6 of the Treasury Regulations. To the extent Nonpurpose investments cease to be allocated to die d obligations of any Obligations, other investments become so allocated up'to the amount of s the-:unused Universal Cap; computed in accordance with Section i.148-6 of the Treasury Regulations. If'on a Cap Computation Date Nonpurpose lnvestments have a valve in excess a of the Univ'crsal'Cap, an amount: of such investments necessary to eliminate that excess ceases.to be allocated to'the Obligations. N6npiirpose Investments cease to be allocated to the Obligations in the following order, within the meaning of Section 1.148-6 of the Treasury Regulations: ' 8 DOCSOC/1494378v3/022092-0002 PackefP,gg;�1'89' (L) first, amounts held in a sinking fund, pledged fund, or reserve or replacement fund for the Obligations (other than proceeds derived from the sale of the Obligations), (2) second, transferred proceeds,and (3) third, proceeds derived from the sale of the Obligations and earnings thereon, all within the meaninb of Section 1.148-6 of the 'treasury Regulations. ii (4.) A failure to do a Universal Cap a calculation on a Cap Computation Date will not result in noncompliance with.Section 148(f)of the Code if, in the absence of that failure,-the Obligations would-have satisfied the Rebate Requirement. c - J (iv) Yield See Section III hereof. 0 (c) Rebate Exception. 0 (i) Bona Fide Debt Service Funds- 'Flit Issuer will be relieved of the obligation 0 to pay the'Rebate Requirement with respect to amounts earned on funds in the Bona ride Debt Service Funds. 'C m c� (ii) Expenditure Exceptions. There arc three-expenditure exceptions from the XM Rebate Requirement - the "Two-Year Exception," the "Six-Month Exception," and the y ".Eighteen-Month Rxception." The Tssuer will be relieved of the obligation to pay the Rebate = Requirement with respect to that portion of the proceeds.of the Obligations described in each applicable Subelausc(1) below cif each Clause (A), (B), and (C), if the. applicable o requirements set forth. in each applicable Subclause(2) below are satisfied of each R Clause (A); (B);and (C). o - Q (A) Two-Year Exception.. X a (1) The .portion of the "available construction- proceeds" (as defined below) of the Obligations at least 75 percent of Which.are to be used N for construction expenditures (including reconstruction and rehabilitation) W with respect to property that is to be owned by a governmental unit or an = organization described in Section 501(c)(3) of the Code and exempt from federal income tax under Section 501`(a) of the Code is described in this Subelausc. The term "available construction proceeds" means an amount a equal,to the portion of the issue price (as defined in Section III of this Tax Certificate) of the Obligations described in this Subelause,. increased -by m earnings thereon, and increased by tlie'proportionate arnount of earnings on E the 2011A Reserve Subaccount allocable to the portion'of the issue described in this subclause earned prior to the eaflier of the close of the two-year period e described in Subelausc (A)(2) or the date construction of the Project is substantially complete; Available construction proceeds do not include amounts to be used to pay Issuance Costs of the Obligations: or proceeds derived from the sale, of the Obligations in the 2011=A Reserve Subaccount 9 DOCSOC/1494378v3/0?2092-0002 - �PackefrPg;;1.90 (other than the -earnings thereon described above). The.Issuer should note that earnings- on -tile portion of the 201 IA Reserve Subiccouiit described above earned other than during the period described in Subclause(A)(2) are subject to the Rebate Requirement. (2) This exception will be treated as being satisfied if at least 10% of the available construction:proceeds of the Obligations are expended for the governmental purposes of the Obligations within the six-month period :beginning on the date of issue of (lie Obligations, at least 45% of such amounts arc expended for the governmental -purposes of the Obligations a within the one-year period beginning on the date of issue of the Obligations, IM at least 75% of such amounts are expended for the governmental purposes of the Obligations within the 18-month period beginning on the date of issue of the Obligations, and all of sucli:amounts are expended for the goverrurnental c .purposes of the Obligations within-the two-year period beginning on the date -J m of issue of the Obligations. The requirement that 100%: of the available c construction proceeds of the:Obligations be expended within two years may a be xeduced to not below 95% provided that the amount not expended is held Q 'by the Issuer for a period not exceeding one year as a-"reasonable retainage". as required or permitted by construction contracts with contractors. The � requirement that 100% of the Gross Proceeds be expended within two years may be reduced by an amount equal to the lesser of'3% of the issue price of ci the Obligations or $250,000.00 if the Issuer exercised due di-ligence to complete the Project. t— W a (B) Six-Month Exception. The issuer will 6e relieved of the obligation to m pay the: Rebate Requirement with respect to the portion of the proceeds of the Obligations described in Subclause(1) below if the :requirements described in Subclause(2) below are satisfied, c (1) All Gross Proceeds of die Obligations (other than "transferred X proceeds" of the Obligations, amounts held in the 2011A Reserve Subaccount, and amounts described in Subparagraph(c)(i.) of this Section IV Q of this Tax Certificate),are described in-this Subclause. N (2)' This exception will he treated as having been satisfied if all Gross Proceeds of the Obligations subject to this exception are expended for m the governmental purposes of the Obligations no later than:the day that is six s months after the date of issue.of the Obligations. - B -(C) Eighteen-Month Exception. The Issuer will be relieved of the c obligation to pay the-Rebate Requirement with respect to the portion-of the proceeds m of the Obligations described in Subclause (1) below if the requirements described in Subclause(2)below are satisfied. a (1) All Gross Proceeds of the Obligations allocable to new money purposes that may be invested at an unrestricted yield, including reasonably .expected investment earnings as of the date hereof (other than ainounts 10 POCSOC14943 7M/02209210002 Packet=Pg;1,91. described in Subparagraph (c)(i) of this Tax Ceriiticate, and amounts held in the 2011 A Reserve Subaccousit),are described in.this Subelause. (2) This.exception will be treated as being satisfied if at least 15% of such monies are expended far the governmental purposes of the Obligations within the six-month period beginning on the date of issue of the Obligations, at least 60% of such monies are expended for the governmental purposes of the Obligations within the one-year period beginning on the date of issue of the Obligations, and 100% of such monies are expended for the M governmental purpose of the Obligations within the 18-month, period a beginning on the date of issue of the Obligations. The requirement that 100% of the Gross Proceeds be expended within 18 months may be reduced to riot e—o below five percent (5%) of the proceeds derived from the sale of the tM Obligations subject to this exception that is retained for reasonable business c purposes relating to the property financed with the Obligations provided such monies are expended within 30 months of the issue date of the Obligations. c Additionally, the requirement that 100% of the Gross Proceeds be expended a within 18 months may be reduced by an amount equal to the lesser of 3% of Q the issue price of the Obligations or $250,000.00 if the Issuer exercised due � diligence to complete the Project. (iii) Expectations. The Tssuer reasonably expects that at least.seventy-five percent m of the proceeds of the Obligations deposited in the Redevelopment Fund, and earnings x thereon,are expected to be used for-Project construction expenditures. N V (iv) Elections. (1) Seventy-Five Percent Test. Pursuant to Treasury .o 4. Regulation§ LI48-7(f)(1)(i), the Issuer expressly elects to satisfy the ca requirements of Section 148(f)(4)(C)(iv)(1) of the Code based upon its 2 reasonable expectations. .F -(2) Penalty in Lieu of Rebate. Pursuant to Q Section 148(0(4)(C)(vii)of the Code, the Issuer may elect, on the date hereof; o to pay a penalty (the "1'/i% Penalty"), with respect to each six-month period N after the'date the Obligations are issued, equal to 1%percent of the amount of w available construction proceeds (as described above),which as of the close of the six-month period are not spent as required by Paragraph(c)(ii)(A)(2). z The I''/a% Penalty shall cease to apply: (A) if the available construction e� proceeds a're expended, (I3) if a special three percent penalty (the "3% a Penalty") is paid in accordance with Section 148(t)(4)(C) of the Code, or c (C) after.the latest maturity date of any Obligation (including any refunding bond). All penalties are to be paid to the United States not later than 90 days after the period to which the penalty relates. The Issuer expressly does not elect to pay the penalty described in Section 148(0(4)(C)(vf) of the Code in a lieu of the Rebate Requirement described in Section 148(0(2) of the Code, the 3% Penalty described in Section 148(0(4)(C)(viii) of the Code, or to terminate the I%s% Penalty pursuant to Section 148(f)(4)(C)(ix) of the Code. Additionally, the Tssuer expressly does not elect to exclude earnings on any • 11 ROCS OC/14943 78v3/022,692-0002 Packet PM 192 ;8':Cg_' reasonably required reserve fund as available construction.proceeds pursuant to Section 148(0(4)(C)(vi)(1V) of the Code. (3) Bifurcation. The issuer expressly does not elect to treat (he issue of Obligations as separate bond issues for purposes of Section 148(f)(4) of the Code. (d) Prohibited investments and Dispositions. The issuer acknowledges that compliance with-Section 148(f) of tine Code may involve taking no acdon= to artificially reduce (lie Rebate Requirement by the manner of investing Gross Proceeds. The 'issuer covenants that absent an a opinion of nationally recognized bond counsel that the exclusion from gross income of interest with tM respect to the Obligations will not be adversely affected, it will comply with. the rules of this Subsection to assure compliance with Section 148(f).ofthe Code. c • (i) No Nonpurpose Investineti[ hay be acquired with Gross .Proceeds for an J amount in excess:of the fair market value of such Nonptitpose Investment. No Nonpurpose e Investment may be sold or otherwise disposed of for an amount less than the fair market `e. value of the Nonpurpose:Tnvestment. Q m (ii) The fair market value of any Nonpurpose Tnvcstment ,is the price that a willing buyer would pay to a willing seller to acquire the Nonpurpose Investment in a bona fide; arm's-length transaction, with no amounts to artificially reduce or increase-the yield on - the Nonpurpose Tnvestment. Fair market value generally is determined on the date on which x a contract to purchase or sell the Nonpurpose Investment becomes binding(i.e.,the trade date F. rather than the settlement date). The purchase-or sales price of a Nonpurpose Investment is not adjusted(except as provided below) to take into account any administrative costs of the c Nonpurpose Investment. For calendar year 2011, a brokerage commission of similar fee for 00 c ail investment contract and for investments 'for a yield restricted defeasance escrow is ° w . included as a receipt to the extent the commission exceeds the lesser of(A) $36,000.00 and (B) .2%of the computatimal base or,.if more, $4,000;:provided, a brokers fec or similar fee ° is included as.a.receipt to the-exterit all brokers fees.or similar fees of the issue:of Obligations e exceed. $101,000.00. For purposes of this Tax Certificate "computational base" means (A)tot a guaranteed investment contract, the ariount.of Gross Proceeds to be deposited in the contract, and (B) for investments (other than guaranteed investment contracts) to be c deposited in a yield restricted defeasance escrow, the amount of Gross Proceeds initially N invested in those investments. For subsequent calendar years,-the.dollar limits described in w this Subsection may be increased for cost-of-living adjustments. See Treas. Reg. § 1.148- d S(e)(2)(w). Certain administrative costs, including reasonable direct administrative costs, ,E other than carrying costs, such as brokerage commissions or selling commissions, but not eve legal and accounting fees; recordkeeping; custody and similar costs, may be taken into a account:in.computing the Rebate Requirement with respect to investments. See Treas. Reg. § LAM. General overhead costs and similar indirect costs of the Issuer such as employee E salaries and office expenses.and costs of computing rebatable arbitrage may not be taken into account. The following provisions.provide guidelines as to when the Nonpurpose Investment will be deemed to be acquired for its fair market-value. Other methods may be used, a however,to establish fair market value. (iii) Nonpurpose -Investments that are investment contracts and investments purchased for:a yield restricted defeasance escrow will.be considered-acquired and disposed 12 DOCSOC:/14943 780/022092=0002 �Packet�Pg193 � of for an amount equal to the fair market. value of such obligations- if ahe following; requirements are satisfied: (A) The Issuer makes a bona He solicitation for the purchase of the investment. A bona fide solicitation is a solicitation that satisfies all of the following requirements: (1) The bid specifications are in writing and are timely forwarded to potential providers; IL n (2) The bid specifications include all:material terms:ofthe bid. A term is material if it may directly oc indirectly affect tlae yield or the cost of the investment, c (3) The bid specifications include a statement notifying potential .0 providers that submission of a bid is a representation-:that the potential o provider did not consult with any other potential provider about its bid, that CL 2 the bid was determined without regard to any other formal or informal C agreement that the potential provider has with the Issuer or any other person � (whether or not iii. connection with the bond issue), and (hat the bid is not being submitted solely as. a courtesy to the Issuer or any other person for purposes of satisfying the requirements of paragraph(B)(1)or(2)below. v x (4) The terms of the bid specifications are commercially F reasonable. A tear is commercially reasonable if there is a legitimate business purpose -for the term other than to increase .the purchase price or = reduce the yield of the investment. 'For example, for solicitations of investments for a yield restricted defeasance escrow, the hold firm period 0- must be no longer than the Issuer reasonably.requires. 0 (5) For purchases of guaranteed investment contracts only, (lie a terms of the solicitation take into account the issuers reasonably expected deposit and drawdown schedule:for the amounts.to:be invested. Q T (6) All potential providers have an equal :opportunity to bid. For N example, no potential provider is given the opportunity to review other bids w (i.e.,a )ast took)before,pruv idi rig a bid, 1_ (7) At least three reasonably competitive -providers are solicited for bids. A reasonably competitive provider is a provider that. -has an Q established industry reputation as a competitive provider of the type of investments being purchased. s (B) The bids received_ by the Issuer meet all of the following requirements: Q (1) The Issuer receives at least three bids from providers that the Issuer solicited under a bona fide solicitation meeting the requirements of paragraph (A) of this section and that.do not have a material financial interest 13 DOCSOC/14 943 780/022092=0002 :l?,acket�Ng:1;94N �8`1C.J in the issue. A lead underwriter in a negotiated underwriting-aransaction is deemed to have a material financial interest in the issue until 15 days after the issue date of the issue. In addition, any entity acting as a financial advisor with respect to the purchase of the investment at the time the bid specifications are ;forwarded to potential providers has a material financial interest in the issue A provider that is a related parry- to a provider that has a material financial interest in the issue is deemed to have a material -financial interest in the issue. a (2) At least onc.ofthe three bids described in paragraph (B)(1) of a� above is from a. reasonably competitive provider, within the meaning of or paragraph (A)(7)ofthis section. a� (3) If the Issuer.uses an agent to conduct the bidding process,.the c agent did not bid to provide the investment. m 0 (C) The winning bid meets the following requirements' a a (1) quwwnteed investment contracts. If the investment is: a guaranteed investment contract, the winning bid is the highest yielding bona fide bid (determined net of any broker's fees). 4- m (2) Other investments. If the investment is not a guaranteed x investment contract,the following reyuirements are met: 1M W a 1. The winning .bid is the lowest cost bona fide bid c (including any broker's fees). The lowest cost bid is either the lowest m cost bid for the portfolio or, if the Issuer compares the bids on an c investment-by-investment basis, the aggregate cost of a portfolio comprised of the lowest cost bid for each investment. Any payment 2 received by the Issuer from a provider at the time a guaranteed x investment continct is purchased (e.g., an escrow float contract):For a yield restricted defeasanee escrow under a bidding procedure meeting r the requirements of paragraph (iii) is taken. into account in c determining the lowest cost bid. N w 2. The lowest cost bona fide bid (including any broker's d fees) is not greater than the. cost- of the most efficient portfolio s comprised cxcfusively of State and Local Government .Series Securities from the United States Department of the Treasury.; Bureau a of Public Debt. The cost of the most efficient portfolio of State and t: Local Government Series Securities is to be determined at the time that.bids are required:to be submitted pursuant to the terms-of the bid specifications. Q 3. If State and Local Government Series Securities from the United States Department of the Treasury, Bureau of Public Debt are not available for purchase on the day that bids are required to be submitted:pursuant to terms of the bid specifications because sales of 1 DO GS OC/14943 780/02209MOO2 those securities have been suspended, the cost comparison of (C)(2)(2.) is not required. (D) The provider of the investments or the obligor on the Guaranteed investment contract certifies the administrative costs that it pays (or expects to pay, if any)to third parties in connection with supplying the investment. (E) The Issuer retains the following records with the bond documents until three years after the last outstanding bond is redeemed: a. a (1) For purchases of guaranteed investment contracts, a.copy of the contract; and for purchases -of investments other than guaranteed Co investment contracts,the purchase agreement or confirmation. (2) The receipt or other record of the amount actually paid by the :0 Issuer for the investments, including a record of any administrative costs paid c by the Issuer,and the certification under paragraph(D)above. c. c. a (3) For each bid that is submitted, the name of the person and entity submitting the bid, the time and date of the bid, and the.bid results. o (4-) The bid solicitation form and, if the terns of t}ie purchase agreement or the guaranteed investment contract deviated from the bid x solicitation form or a submitted bid is modified, a brief statement explaining H the deviation and stating (lie purpose for the deviation. For example, if the ,a Issuer purchases a portfolio of investments for a yield restricted defeasance = escrow and, -in order to satisfy the yield restriction requirements of Code Section 148, an investment in the winning bid is replaced with an investment o with a lower yield,the Issuer must retain a record oRhe substitution and how the price of the substitute investment was.determined.If the Issuer replaces an investment in the winning bid portfolio with another investrnent,the purchase price of the new investment is not covered by the safe harbor unless the investment is bid under a bidding procedure meeting the requirements of Q paragraph(iii). c ' N (5) For purchases of investments other than guaranteed w 4. investment contracts, the cost of the most efficient portfolio of State and Local Government Series Securities, determined at the time that the bids were E required to be submitted pursuant to the terms of the bid specifications. (iv) Nonpurpose Tnvestments that are certificates of deposit with a fixed interest a rate, a fixed principal payment schedule, a fixed maturity., and a substantial.penalty for early withdrawal, will be considered acquired for their fair market value if the following ,E requirements are satisfied: a (A) the yield on the certificate of:deposit is not less .than the yield on reasonably comparable direct obligations of the United States; and 15 D005OC/14943 7801022092-0002 �.Packgt Pg.1:9ti, • _ '8Cg: (B) the yield on the certificate of deposit is not less than the highest yield that is liublishcd or posted by the provider to be currently available from the-provider on comparable certificates of deposit offered to the public: (v) ) xcept as otherwise provided in paragraph (d), any Nonpurpose Investment that is not of a type traded on an established securities market, within the meaning_ of Code §F273, shall be rcbuttably presumed to-be acquired or disposed of for an amount in excess of the fair market value of the Nonpurpose Investment. IL (vi) The fair market value of a United States Treasury obligation that is purchased a directly from the United States Treasury is its purchase price, CD c �a (e) Bond Year. For purposes of this Certificate, Bond Year ends on each September 1 and begins on each September 2; provided that the first Bond Year'begins on the date hereof and the c last Bond Year ends on the date no Obligations are outstanding. —� d a a :Q V Recordkeeping and Allocation. m .r R (a) Recordkeeping. The Issuer will maintain or cause to be maintained sufficient records to support compliance with the provisions of this Tax Certificate and to:support the exclusion from gross income of interest on the Obligations for federal income tax purposes, including, but not v limited to, the following: N (1) basic records relating to (lie Obligations (e.g., indenture, loan agreement., and c opinions); in c 0 (ii) documentation evidencing expenditure of Obligation proceeds; 4. 0 2 (iii) documentation evidencing use of Obligation financed property (e.g., a management and service contracts); cxa (i.v) documentation evidencing sources of payment and security for Obligations; •a and o N LU (v) documentation pertaining to the investment of Obligation proceeds (including c rebate calculations). E r In particular, the issuer will maintain or cause-to be maintained detailed records with.:respect to each security, obligation, annuity contract, or an other investment-type property allocated to Gross a Proceeds, including: (i).purchase date, (ii) purchase price, (iii) information establishing fair market m value on the date such investment is allocated to Gross Proceeds, (iv) any accrued interest paid; (v) E face amount,.(vi) coupon rate,:(vii) periodicity of interest payments, (vii) disposition price, (ix)-any R accrued interest received, and (k) disposition date. The Issuer shall establish separate sub-accounts a or take other accounting.measures in order to account fully for all Gross Proceeds. The Issuer shall maintain books and records with respect to the allocation of Gross Proceeds in accordance with (his Tax Certificate. All records required to be maintained pursuant to this Tax Certificate must be kept as long as the Obligations are outstanding plus three years afterall Obligations are retired, and with respect to obligations:refunded bythe Obligations,for the same period required forthe Obligations. 16 DOCS00 t 49437801022092=0002 .Packet:P.g.-197 (b) Allocation. The Issuer may use any reasonable, consistently applied accounting inethod to account for Gross Proceeds of the Obligations in accordance with Treasury Regulation § I.148-6; for purposes of allocating Gross Proceeds to capital expenditures intended to be financed pursuant to this Tax Certificate after the date of issue of the applicable tax-exempt obligation, acid paid to unrelated third parties ("Qualified Capital Expenditures"). the Issuer may use the following accounting methods: "specific tracing,""gross-proceeds-spent-First,""first-in, first-out," or a ratable allocation method. The Issuer covenant to consult with nationally recognized bond counsel with respect to the applicable method of allocation of Gross Proceeds to expenditures that are dot Qualified Capital Expenditures. In addition, the accounting metliod applied must account uniformly C- foi• (i) Gross Proceeds commingled with other moneys in excess of $25,000 and such other A commingled moneys and (ii) Gross Proceeds for each fiscal year or interim fiscal period therein during which the issue is outstanding. Another accounting method may, however, be utilized for � moneys if it is for a bona fide purpose unrelated to federal income tax restrictions. If Gross Proceeds are commingled with other moneys (other that in an open-end regulated investment company).in an c amount in excess of$25,000 (a "Comminled Fund"),the following additional requirements must-be m satisfied. First, all payments and receipts with respect to investments in the Commingled Fund must be allocated among the different moneys ratably based upon either(i)average daily balances during a a "Computation Period" (as defined below) or (ii) the average of the beginning and ending balances of Q the amounts in the Commingled Fund for a Computation Period that does not exceed one month. A Commingled Fund may use as its Computation Period any consistent time period within its fiscal year that does not exceed three months. Not less frequently than at the end of each Computation Period, the Commingled Fund must,compute and allocate to different types of moneys all payments, °' v receipts, income, gain or losses realized, and expenditures. Second, except as provided below, the X Commingled Fund must treat all of its investments as if sold at fair market value on the last day of w the fiscal year or as of the last day of each Computation Period, and so allocate net gains.or losses from such deemed sales (the"Mark-to-Market Requirement'D. A Commingled Fund need not satisfy the Mark-to-Market Requirement if(i) the.remaining weighted average maturity of all investments held by the Commingled Fund during a fiscal year does not exceed eighteen months and such investments consist exclusively,of debt obligations, (ii) the Commingled 'Pund serves as a common c reserve fund or sinking fund for tWo or more issues of the same issuer or (iii) the Issuer (and any a related party) do not own more than twenty-five percent of beneficial interests in the Commingled Fund. Common reserve funds or sinking funds for two or more issues must be ratably allocated (not less frequently than once every five years and on each date anew issue is added or retired (if relative original principal amounts are used to so allocate)) in accordance with (i) the value of the bonds N under•Treasury Regulation § 1.148-4(e), (ii) the relative amounts of the remaining maximum annual ut debt service payable on the issues, or (iii) the relative original stated principal amounts of the outstanding issues. Notwithstanding any other provision of this Tax Certificate, the allocation methodology applied must be consistent for all purposes of this Tax Certificate. en The Issuer must account for the allocation of Gross Proceeds to expenditures not later than eighteen months after-the later of the date the expenditure is pail and the date the applicable Project m is placed in service and in any event, by the date sixty days after the fifth anniversary. of the issue E date of the Obligations or the date 60 days after the.retirement of the Obligation if earlier. VT Miscellaneous. (a) Federal Guarantee. The Issuer will not invest any of the proceeds of the Obligations in a manner which would result in the Obligations being considered "federally guaranteed" within 17 DOCSOC/14943780/022092-0002 Packet_P,g,,198 the meaning meaning of Section 149(b) of the Code, except as permitted therein (i.e., will not cause interest with respect to the Obligations to be 'included in gross income for federal income tax purposes). (b) Information Reporting. Attached as ExhibitD is a copy of the Form 8038-0 fled wiffi respect to the Obligations. (c) No Poplin . The Tssuer does not expect to use and will not use the proceeds of the Obligations, nor any refinanced obligations, to make or finance loans to two or more ultimate borrowers' a _ a (d) Hedge Bonds. Notmore than 50% of the proceeds of the Obligations allocable to new money purposes will be invested at a guaranteed rate of return for a term of four years or more. aM .O J d • O C- Q. a v d+ V d V X F N _ O m ` O t0 O 'Q CD - a T T N W C d E s R Q w C d t C1 ;gyp Q 18 DOGS Dal 4943780/022092-0002 ^Packet•P.g:1:99 VII Concluding Matters. (a) Reliance. The expectations of the Issuer concerning certain uses of Obligation proceeds and certain other moneys described herein and other matters are based in whole or in part upon representations of other parties as set forth in this Tax Certificate or the exhibits attached hereto. The Issuer is not aware of any facts or circumstances that would cause it to question the accuracy or reasonableness of any representations made in this Tax, .Certificate or exhibits attached hereto. IL (b). Authority. The undersigned is an authorized representative of the Issuer,. and is n. acting for and on behalf of the Issuer in executing this Tax Certificate. To the best of the knowledge and belief of the undersigned, there are no other facts, estimates or circumstances that would materially change the expectations as set forth herein,and said expectations are reasonable. tM c 0 (c) Amendment. Notwithstanding any provision of this Tax Certificate, the Issuer may d amend this Tax Certificate and thereby alter any actions allowed or required by this Tax Certificate if c such amendment is based on an opinion of bond counsel that the exclusion from gross income of a interest with respect to the Obligations will not be adversely affected. a d Dated: June 15,2011 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE d t� By. 10 Betsy I. Adams .c Executive Director 0 �a c o a .a T ' 0 N W C d E .0 tt to Q C d E t� l0 Q S-1 DO CSOC/1494378/022092-0002 Paeket P,g.200 EXHIBIT A DESCRIPTION OF PROJECT COSTS-PAID OR TO BE PAID FROM PROCEEDS OF TEIE OBLIGATIONS IL The Agency. anticipates using the proceeds of the Bonds deposited to fund the costs of public a improvements beneftting the Project Area; such as,but not limited to,the following: Southwest atea: infrastructure study grid design $ 600,000 • Southwest area:infrastructure construction $10,000,000 • Barton Road infrastructure improvements $ 1,000,000 > • Michigan Street improvements: design and ROW acquisition $ 400;000 ° a • Michigan Street improvements:construction $ 3,000.00.0 Q • Union.Pacific/Barton Road bridge construction $ 500:000 • Storm,drain and street rehabilitation:Van Buren,.Pico $12,000,000 Main Streets • Mt.Vernon slope stabilization $ 2,000,000 a • Vista Grande park construction $ 70,000 v x H y .a C O m C O a+ .v O Q F Q O N W C d E .0 v 10 Q r C G1 l: t v Q A-1 13OCSOC/14943780/0220924002 ::,Packet:Pg:201' EXHIBIT B OFFICIAL ACTION Reserved a IL eo O J d O L Q Q. Q v d w ` V V N C 0 O .v O Q F— Q O N W C d E .0 w ea - a d E s ca Q �fl-1 DOCSOC f 4943 7801022092-0002 Packet P9 og-- CXMIT C CERTIFICATE.OF`rlTE UNDERWRITER Wedbush Securities lnc;:(the"Underwriter")has acted as the Underwriter of the$15;:1.75,000 Community Redevelopment Agency of the City of Grand Terrace, Community Redevelopment Project Area, Tax Allocation Bonds, Issue of 2011A (tile "Obligations"), and hereby certifies and ii represents the.followiug, based upon the information available to it: .2 - . IL d A. Issue Price. c l. As of the date the purchase agreement was entered into by the Issuer and the Underwriter with respect to the:.Obligations (the."Sale Date"), the Underwriter reasonably ekpected ,0 to sell at least 10%of-each maturity of the Obligations to the general public(excluding bond houses, brokers,or similar persons acting in the capacity of underwriters or wholesalers) in a bona fide public Q. offering at the prices listed on Schedule A. a v 2. In out opinion, and based upon our estimate as of the date.hereof, the initial �a offering prices of the Obligations are within n reasonable range of, and should reflect, the fair market prices for such Obligations as of the Sale Date. c� 3. As of the date of execution of the attached Tax .Certificate, all of the exo Obligations have actually been offered to the general;public at the prices listed in Schedule A. N c 4. At least 10% of each maturity of the Obligations have been sold or was �° reasonably expected to be sold at the prices listed on Schedule A. c 0 B. Arbitrage Yield. c ` a 3.1 We Have calculated the arbitrage yield with respect to the Obligations to be 5.8830268%. C. Reserve Account. N The funding of the 2011A Reserve Subaccount in an amount equal to $1,280,893.88 is W reasonably required, was a vital factor in marketing the Obligations, facilitated the marketing of the Obligations at an interest-rate comparable-to that of bonds.and:other obligations of a similar type and is not in excess of the amount necessary for such purpose. a c m E" t a Ce I DOCSOC/1494378v3/022092-0002 Packet Pg:203 v 8�C.g AU terms not defined herein have the meanings ascribed to those terms in the attached Tax Certificate. Dated: June 15,2011 WEDBUSH SECURITIES INC. N ,� Y. -2 Its: Man ag g Direc r n' ea 6 c 0 J d L Q. a Q v d V d V N a c % .2 co _0 . a c� F Q 0 N W C 0 E - t v c0 Q J G d E Z v - R Q C-2 DO CSOG1494378/022092-0002 " .•Packet�(Pg,204. SCHEDULE A Price of Obligations OtTered or Reasoliably Expected to be Offered to the General Public in a Bona Fide Public Offering Maturity Date Principal Amount interest Rate Price a 9/1/2012 $ 260,000.00 2.000% 100.584% a 9/1/2013 280,000.00 3,000 102.085 _ 9/112014 285,000.00 3.000 :101.376 9/1/2015 2-95,000.00 4:000 103.443 9/l/201.6 ,310,000.00 4.000 101.738 c 9/1/2017 320,000.00 3.750- 98.632 9/1/2018 330,000.00 4.160 98.522 c 9/1/2019 340,000.00 4,375 98.201 a 9/1/2022 1,140,000.00 5.100 98.816 Q 9/1/2033 11,615,000.00 6.000 99-021 w d v x c� c 0 m c - o R 0 a x a 0 N W C C1 E - s ea Q c d - E t a Schedule A-1 DOCSOC/14 943 780/022092-0002 �Packet Pg.205 V t) 0 U " C co n A - L - a w J w N N - O O O ILI � w � :M I °' Attachment:Attachment E-2011A Tax Allocatio ►rids Tax Certificate (Approve Long-Rai PMP) o. InformatiOn, Return for Tax-Ek6mpt QovemmenW Obligations Poim 0- Linde?Internal Revenue Code sectlon 149(e) OMB No.1545-0720 (Rev.May 2010) b-See separate Instructions. m°ri ar,istio Caution:ff fhe issue price is under S160,000,use Form8038-GC, Re ortinq Author If Amended Return,chkk,here C> D q name 2 I-Injaea arnplo*iderfl-roation nurnbari(FIN) qomrnunity Redevelopmelit.Agency of the City of Grand Terrace 3702073 3- NUmber and street(of P.O.box-it mail Is not delivered to street address) Room/suite 4 'Report number(For 1AS Use Only) 22795 Barton.Road 131 1 S City,tcoin,or pc5st;6flita.rja@e.and ZIP code 6 Date of i*zue _Grand Terrace,California 92313 Juh&15,2011 IL 7 Name of psue 9 CUSIP'nLrriber Community R ed evelopment Project Areajax Allocation Bonds,Issue of 201 1A 386485BV7 9 Hama and title of officer ot,the Issuer of other person whom the IRS may call far morn Information 110 Telephone nurnbs-r of officer orother person 12 121 Bets .M.Adams,Execudve Director 909 430-2245 11• Type of Isstie (errter the issue,price See instructions and attach schedule 11 Education . . . . . . . . . . . . . . . . .0 12 Health and hospital . . . . . . . . . . . . . . . .. . . . . . . 12: 13- Transportation. . . . .. . . . . . . . . . . . . . . . . . . . . 13 14 Public safety . . . . . . . . . . . . . . . . . . . . . . 14 16 Environment(including sewage bonds). . . . . . . . . . . . . . . . . . IS: . . ... — CL - 16 Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -11 b. 17 Utilities . . .. . . . . . . . . . . . . . . . . . . . . . . .. 17 118 '61her. Describe DO- public:Infrastructure. jg 15,059,242 '66 19 If obligations are TANS or RAN9,check only box 19a. If c.bflgpV0n$are BANs,check only lox 1 9b . . . . . . . . . . . . . . . ll� ❑El 20 If obligationsare in the form of a lease or Installment sale,check box . . . . . . . Description of Obligations. Corn lete for the entire issue for which this form is Ibbei q filed. (p)rinal rurity data (by liaue price (4p)SIqri4 redemption (d)Weighted 73 (63 V141d Ma price at fnabAly i%",emge maturity 0 21i 911J2033 15,059,242.'60 $ 15,175,606.00 15.725 Vears 5.8830268 O/o ITI I Ises of Proceeds of Bond 16sue (inaluding und6twriteitl'discount) 0 22 Proceedsiused for accrued Interest:. . . . . . . . . . . . . . .. . 22 23 Issue pride of entire Issue(enter amount from line 21, column (b)) . . . . . . . . . .. 23 , 15,059,242 60 0 24 Proceeds used for. bond issuance costs(including underwriters'discount) 24 267,781 259.I R 5. 2 :Proceeds used for credit enhancement . . .. . . . . . . . . 25 j 26 Proceeds all6cated to reasonably required reserve or replacement fund 26 1,280,893 88 27 Prodeads used to currently refund Prior issues . . . . . . . . 27 -0- 28 Proceeds used to advance refund prior Issues . . . . . . . . . .28 '0_ Q 29 Total (add llnes:24 through 28) . . . . . . . . . . . . . . . . . . . . . . . .29 1,548,675 13 Cq 30 NonrefiLinding proceeds of the(issue(subtract line 29-from line.23 and enter amount here 30 73,510,567 D6sciipffon of Refund6d.86nds (Complete.this part only for refdndin bonds-) ... 311 Enter the remaining.weighted average maturity of the bonds to be currently refunded. I.P- n1a Years E 32 Enter the remaining,weighted average maturity of the bonds to be advance refunded N* n1a years33 Enter the last date on which the refunded bonds will be 6alled*(MWDDNYYY) ► D/a 34 Enter ths.clatea the refunded bonds were issued 0P--(mwdDD1YY" n1a For Privacy Act and Pao ekwork Reduction Act Nciticb,see separate in6trilcUons. cat.No_f&/7,4s Form 8038-G (Rev.5-2niq) 41 E cc Form aD38-G(Rev 5-2010) Page 2 Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . 35 -0- 36a Enter the amount of gross proceeds invested or to be Invested In a guaranteed investment contract 1 (GIC)(see Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . 36a -0^ b Enter the final maturity date of the GIG D n/a 37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other �=" govemmentaI units - . . . . . . , . . . . . . . . . . . . . . . . . . 37a 1 -0- b If this issue is a loan made from the proceeds of another tax-exempt issue, check box D❑ and enter the name of the issuer D n!a and the date of the issue D nfa 38 If the issuer has designated the issue under section 265(b)(3)(13)(i)(111)(small,issuer exception),check box . . . . D ❑ 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate-,check box . . . . . . . . . . . . . ® ❑ O. 40 If the issuer.has identified a hedge,check box . . . . . . . . . . . . . .. . . . . . . . . . , D' ❑ r Under penalties of perjury.I declare that 1 have examined this return and accompanying schedules and statements,and to the best of my knowledge Signature and belief,they are true,correct,and complete.I further declare that I consent to the IRS's disclosure of the issuer's return information,as neressary' , and to pro21;6�1 urn, the person Urd I have authorized above. _ O Consent Betsy M.Adams,Executive Director --1 ignature oTAWs auuGrized re erntative Dale Type or print name and title Preparees r Date Preparer's SSN or PnN Paid ` Check if a, Preparer's stgWAM �1 setf-employed❑ P01269683 Q. Use Only Ran's name(or Si dling Yocca Carlson 8,Raul EIN a }r yours if self-emproyed), address,and ZIP code. 660 Newport Center Dr.,Ste.1600,New ort Beach Phone no- (949) 725-4237 a) California 92660 Form 8038-G (Rev.52ntn) v 4= 'C C� K tc N " '>3 C ' v r t9 O Q x tts F T r 0 N . W c d s ea Q c a� E s ea Q Packet'.P.d:208 ' P-Aiti,¢!9 Number 8-C'g -- - jyd.by oea Pat tea% 8•Da o af,pel&fa,y i C.Signahire Oa nlX ddre sQ o 7160 3901 9843 2552 9549 D-ishe addre"stodddss 3. ServlcelWo .0ERTIF7F3@9AIL 4. Reslrkted Delivery?t8d-s Feel C] Yes 1. ANde Addressed to,. CL ` < DMRNA7 REVENUE SERVICE CM TER Ogden, Utah 84201 D (Grand Terrace 2011A) _ � .. _ o J 1 PS Form 3811.February 2003 Dornostic Return ReceiptCL d Q :►. ` Co Cr 03, �i. o oa• o a ao a v' r ll k t cc E. Uj d'° r-' O }' ( r k•d`V� 1 tit ?: ! ❑ Lit• O 71,60 ,3901 9843 2552 9549 Return Riscelpt:Requested _--- -- TITEM#35660 N S wnirn OF?A9 1:f9 +e t �u W p TO REORDER GO TO Wn ,A.L Z www.walzpostal.Com E _ OR CALL 1-800-882-3811 3 W � •- � Co \- -3 E �.. P3 1 Q oy 3' + wa. b i :P.Packet Pg.209: