HomeMy WebLinkAbout2012/02/28 Item 07CITY COUNCIL/ CV HOUSING AUTHORITY/
SUCCESSOR AGENCYTO THE
REDEVELOPMENTAGENCY
AG E N ~A STATETM E NT
~~ CITY OF
CHUTAVISTA
FEBRUARY 28, 2012, Item_~
ITEM TITLE:
A. JOINT RESOLUTION
OF THE CITY
COUNCIL, HOUSING
AUTHORITY, AND
SUCCESSOR
AGENCY TO THE
REDEVELOPMENT
AGENCY
JOINT RESOLUTION OF THE CITY OF CHULA
VISTA CITY COUNCIL, SUCCESSOR AGENCY TO
THE REDEVELOPMENT AGENCY, AND HOUSING
AUTHORITY TO RESCIND ACTIONS APPROVED
ON MARCH 8, 2011 BY THE CITY COUNCIL,
REDEVELOPMENT AGENCY AND HOUSING
AUTHORITY IN ORDER TO COMPLY WITH AB 1X
26 AND TO THEREAFTER APPROPRIATE FUNDS
AS REQUIRED
B. JOINT RESOLUTION JOINT RESOLUTION OF THE SUCCESSOR
OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
AGENCY TO THE AND HOUSING AUTHORITY AUTHORIZING THE
REDEVELOPMENT FINANCE DIRECTOR TO TRANSFER ALL ASSETS,
AGENCY AND THE LIABILITIES AND FUND BALANCE AS OF
HOUSING JANUARY 31, 2012 TO THE SUCCESSOR AGENCY
AUTHORITY TO THE REDEVELOPMENT AGENCY AND THE
HOUSING AUTHORITY IN ACCORDANCE WITH
AB 1X 26
C. RESOLUTION OF RESOLUTION OF THE SUCCESSOR AGENCY TO
THE SUCCESSOR THE REDEVELOPMENT AGENCY AUTHORIZING
AGENCY TO THE THE FINANCE DIRECTOR TO APPROPRIATE
REDEVELOPMENT FUNDS NECESSARY TO MEET EXISTING
AGENCY OBLIGATIONS FOR THE CURRENT FISCAL YEAR
IN THE NEWLY ESTABLISHED SUCCESSOR
AGENCY TO THE REDEVELOPMENT AGENCY
FUNDS
D. RESOLUTION OF
SUCCESSOR
AGENCY TO THE
REDEVELOPMENT
AGENCY
RESOLUTION OF THE SUCCESSOR AGENCY TO
THE REDEVELOPMENT AGENCY AUTHORIZING
THE TRANSFER OF 4.0 REDEVELOPMENT
AGENCY POSITIONS TO THE SUCCESSOR
AGENCY AND APPROPRIATING FUNDS TO THE
PERSONNEL SERVICES CATEGORY
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FEBRUARY 28, 2012, Item
Page 2 of 7
ACCORDINGLY
SUBMITTED BY: DIRECTOR OF FIN CE/TREASURERM~
REVIEWED BY: CITY MANAGER
ASSISTANT CITY MANAGEIRECTOR OF DEVELOPMENT
SERVICES
4/Sths Vote:
SUMMARY
YES ~X NO
Assembly Bill 1X 26 was upheld by the California Supreme Court on December 28, 2011. This
bill abolishes redevelopment agencies effective February 1, 2012. The City of Chula Vista is
currently working on transitioning the Redevelopment Agency to the Successor Agency as
required by AB 1X 26 which includes the creation of new funds, transfer of previously allocated
funds back to the Redevelopment Agency and the transfer of staff to the Successor Agency.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines because the proposal
consists of the creation of a government funding mechanism which does not involve any
commitment to any specific project which may result in a potentially significant physical impact
on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines
the activity is not subject to CEQA. Thus, no environmental review is necessary.
RECOMMENDATION
Staff recommends that the City Council, Successor Agency, and Housing Authority adopt their
respective resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Rescind March 8, 2011 Actions
On March 8, 2011, the City Council, Housing Authority and Redevelopment Agency took
actions to appropriate funds from the Redevelopment Agency to the Housing Authority and
General Fund for specific projects (See Attachment A). As a result, the RDA transferred its
Low-Mod fund monies to the City's Housing Authority so that the Housing Authority may
continue to perform the RDA's affordable housing mandates. In addition funds were transferred
to the General Fund and budgeted toward CIP projects. Health and Safety Code section 34167.5
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FEBRUARY 28, 2012, Item~_
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(as found in AB 1X 26) undoes such transfers and states that funds that were transferred shall be
ordered returned to the RDA, or if the RDA no longer exists, to the Successor Agency. As a
result, appropriations are necessary to reverse actual prior year transfers in order to prepare
financial statements for the Redevelopment Agency as of January 31, 2012. Once the audit of
the RDA is completed, all remaining assets, liabilities and fund balances will be transferred to
the Successor Agency.
As part of rescinding these actions, the General Fund funded portion for the projects identified in
the March 8~' staff report will be eliminated.
Successor AgencxFunds
On August 26, 2011, the City Council of the Chula of Vista elected to serve as Successor
Agency which will oversee the winding down of the Redevelopment Agency and continue to
oversee and implement all legally obligated contracted work, projects and programs. The City of
Chula Vista is currently working on transitioning the Redevelopment Agency to the Successor
Agency as required by AB 1X 26.
In order to provide for a clear transition between the RDA and Successor Agency separate funds
will be created to account for transactions as of February 1, 2012. The recommended accounting
structure will involve the closure of the Redevelopment Agency operating and debt service funds
and the creation of new funds under the Successor Agency. The Successor Agency funds will
include the budgets necessary to pay the Enforceable Obligations Payment Schedule to be
funded in the current fiscal year which consists of payments for bonds and loans, payments
required by governments (except pass-through payments), court judgments and settlements, legal
contracts and agreements and contracts necessary for continued administration. Any enforceable
obligations related to fiscal year 2012-13 will be included in the City Manager proposed budget
for Council consideration.
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FEBRUARY 28, 2012, Item ~
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~'~ Rcd~~el~ipm~nt~l~en~}, ~ .wr~~
(_ T~I2E ;i= yh ,~,'~` ' ~';r , ' ~
( N-I 1 Fond "~~T~tI~ '~, ~,~ ~ ~ ~ ~_ SU~l~S~O[ Ai~i~Gy~ ~ '`
,l N C' ~~ I F trill .~<< a'r ~ ~~ x,Ltt fc ., ;• ,~ ~ L~
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Operating Fund
317 t Low & Moderate 318 Redevelopment Obligation Retirement Fund
Capital Project Funds
611 t Bayfront/TCI Project Area 318 Redevelopment Obligation Retirement Fund
651 t Merged RDA 318 Redevelopment Obligation Retirement Fund
671 SW Tax Ag - SUHSD N/A Eliminated 2
672 Sw Tax Ag - COE N/A Eliminated 2
673 Sw Tax Ag - CVESD N/A Eliminated z
674 Sw Tax Ag - SWCCD N/A Eliminated 2
675 Sw Tax Ag - SD County N/A Eliminated 2
Debt Service Funds
471 2003 Ref COP 471 2003 Ref COP - SA
693 OS ERAF 661 s OS ERAF - SA
694 06 ERAF 662 s 06 ERAF - SA
695 06 TABS Series A 663 ' 06 TABS Series A - SA
696 06 TABS Series B 664' 06 TABS Series B - SA
697 08 TABS 665 ' 08 TABs - SA
Notes:
~ FB, Assets & Liabilities will be transfened to fund 318 which was established on Feb. 1, 2012 in accordance with AB lx 26.
z FB, Assets & Liabilities will be transferred to the County. Passthroughs will be administered by the County.
s New fund will receive the corresponding fund balance from each respective existing DS fund.
The City of Chula Vista will prepare financial statements for the Redevelopment Agency as of
January 31, 2012 which will be audited by the City's independent auditors and will require
additional appropriations yet to be determined. In accordance with AB 1X 26, all assets,
properties, contracts, leases, books and records, buildings and equipment of the former RDA are
to be transferred to the control of the Successor Agency and Successor Housing Agency
(Housing Authority).
Transfer of RDA staff to the Successor Agency
The current year RDA operating budget included funding for an Assistant Director of
Redevelopment, Senior Administrative Secretary and two Senior Project Coordinators. Due to
the elimination of the RDA as of February 1, 2012, these permanent positions will be transferred
to the Successor Agency. The staff will be responsible for two major functions related to the
dissolution of the RDA - 1. General wind down activities including disposition of property and
assuring compliance with Successor Agency regulations. 2. Continuation of projects based on
the Recognized Obligation Payment Schedule CROPS).
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FEBRUARY 28, 2012, Item
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DECISION MAKER CONFLICT
Staff has reviewed the decisions contemplated by this item and have determined that the actions
contemplated are not site-specific and, consequently, the 500-foot rule found in California Code
of Regulations section 18704.2(a) is not applicable.
CURRENT YEAR FISCAL IMPACT
Resolution A - Rescinding Actions Approved on March 8, 2011
Appropriations are necessary in the General Fund for $2.5 million to coincide with the closure of
CIP projects resulting in no net impact. Appropriations from the Housing Authority for $4.25
million are necessary to transfer funds back to the Redevelopment Agency. This will result in no
net impact to the Housing Authority as the acquisition of the Best Western property will not be
pursued utilizing these sources.
Approval of this resolution will result in the transfer of $6.75 million to the Redevelopment
Agency fund. These funds will be reported in the final audited Redevelopment Agency financial
statements as of January 31, 2012 which will be audited by the City's independent auditors,
County of San Diego Auditor & Controller and the State Controller's Office.
Resolution B -Transfer of Assets, Liabilities and Fund Balance to the Successor Agency and
Housing_Authority.
The closure of the Redevelopment Agency Funds will require the transfer of assets, liabilities
and fund balance as of January 31, 2012 to the Successor Agency and Successor Housing
Agency (Housing Authority) in accordance with AB 1X 26. No net General Fund impacts will
result from this action.
Resolution C - Appropriatin funds necessary to meet existing obligations in the newly
established Successor Agency Funds
The closure of Redevelopment Agency Funds and creation of Successor Agency Funds does not
create additional obligations. A schedule of all existing obligations is reported on the
Recognized Obligation Payment Schedule CROPS) for consideration by the Successor Agency
and the Oversight Board. These obligations which consist of bond and loan payments (except
pass-through payments which will be paid by the County of San Diego), court judgments and
settlements, legal contracts and agreements and contracts necessary for continued administration
are scheduled to be funded in the current fiscal year. There are no anticipated fiscal impacts to
the General Fund related to the approval of Resolution B.
Resolution D -Transfer of RDA staff to the Successor Agency
AB 1X 26 does provide for an administrative cost allowance, subject to the approval of the
Oversight Board, which is payable from property tax revenues of up to 5% of the property tax
allocated to the successor agency for the 2011-12 fiscal year and up to 3% of the property tax
allocated to the Redevelopment Obligation Retirement Fund money that is allocated to the
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FEBRUARY 28, 2012, Item
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successor agency for each fiscal year thereafter; provided, however, that the amount shall not be
less than $250,000 for any fiscal year or such lesser amount as agreed to by the Successor
Agency.
Based on recent discussion with the County of San Diego Auditor & Controller, estimated
administrative cost allowances for the current fiscal year are not yet available -County staff is
still working towards defining allowable costs. Based on City staff preliminary estimates it is
anticipated that the Successor Agency could receive funding in a range of $0 to $225,000 to
offset staff time costs for the 4.0 Redevelopment Agency staff being transferred to the Successor
Agency from February 1, 2012 to June 30, 2012. Based on the final determination of the County
on administrative cost allowances this appropriation could result in a General Fund impact of $0
to $225,000 in the current fiscal year.
Other Current Year Impacts
In addition to the potential fiscal impacts related to the transfer of RDA staff to the Successor
Agency, there is a projected $281,000 impact to the General Fund related to unreimbursed
Citywide Overhead (approximately $57,000) and staff time reimbursements (approximately
$224,000) in the General Fund. This anticipated shortfall will be accounted for in the 2"d quarter
fiscal analysis which will be presented to the City Council on March 13, 2012. However, the
impact to the General Fund may be less as staff receives further clarification on allowable
administrative costs. Staff time reimbursement revenue from the Redevelopment Agency is also
included in the Housing Authority and Development Services funds, staff is still working to
identify the impact to these funds.
ONGOING FISCAL IMPACT
The ROPS sets forth the Agency's obligations determined to be enforceable obligations under
Section 34171(d), Health and Safety Code. The City has prepared an ROPS which will be
reviewed by the Oversight Board, County of San Diego and State Controller's Office. The
ROPS will be deemed valid when the following conditions are met: (i) It is reviewed and
certified, as to its accuracy, by an external auditor, (ii) The certified ROPS is submitted to and
duly approved by the Oversight Board. (iii) A copy of approved ROPS is submitted by the
County Auditor and Controller, State Controller's Office and the State Department of Finance
and is posted on the Successor Agency web site. Until the final approval of the ROPS is
completed, it is uncertain if additional General Fund impacts will be realized by the
implementation of AB 1X 26.
The Successor Agency is required to prepare an ROPS that is forward looking for asix-month
period. Therefore, obligations will continue to be reviewed by the Oversight Board semi-
annually.
The ongoing General Fund impacts due to the loss of the RDA Citywide Overhead and staff time
reimbursements is projected to be approximately $416,000 for fiscal year 2012-13. This will add
to the projected budgetary gap of $3.0 million for fiscal year 2012-13.
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FEBRUARY 28, 2012, Item
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Additional General Fund impacts may result due to a required mid-year audit scheduled to begin
in March and final payment of outstanding invoices. The City will pursue collection of these
funds by including them in future Recognized Obligation Payment Schedule. Due to the
uncertainty regarding the implementation of AB 1X 26, it is likely that future appropriations will
be requested as the City works towards winding down the Redevelopment Agency.
ATTACHMENTS
Attachment A -City Council and Redevelopment Agency March 8, 2011 Staff Reports Items
and 2 -excluding attachments. Attachments are available through the City Clerk.
Prepared by: Maria Kachadoorian, Director of Finance/Treasurer
7-~
CITY COUNCIL
RE~EVELC)P~ENT AGENCY
AGEIV ~A ~TATEMEitiIT
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MARCH 8, 2011, Item
ITEM TITLE: CONSIDERATION BY THE CHULA VISTA REDEVELOPMENT
CORPORATION, CITY COUNCIL OF THE CITY OF CHULA
VISTA, REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, AND THE HOUSING AUTHORITY OF THE
CITY OF CHULA VISTA OF A COOPERATION AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA AND HOUSING AUTHORITY OF THE CITY
OF CHULA VISTA RELATED TO COMMITING AND
APPROPRIATING FUNDS TO THE HOUSING AUTHORITY
FOR REDEVELOPMENT AGENCY HOUSING PROJECTS
A} RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION RECOMMENDING THAT
THE REDEVELOPMENT AGENCY APPROVE A
COOPERATION AGREEMENT WITH THE HOUSING
AUTHORITY RELATED TO COMMITTING AND
APPROPRIATING FUNDS TO THE HOUSING AUTHORITY
FOR REDEVELOPMENT AGENCY HOUSING PROJECTS
B) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA MAKING FINDINGS RELATED TO THE PROJECTS
IDENTIFIED IN THE COOPERATION AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA AND HOUSING AUTHORITY OF THE CITY
OF CHULA VISTA
C) RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA APPROVING A COOPERATION
AGREEMENT WITH THE HOUSING AUTHORITY OF THE
CITY OF CHULA VISTA; COMMITTING FUNDS AND
CONSENTING TO THE PAYMENT OF THOSE FUNDS TO THE
HOUSING AUTHORITY FOR COSTS ASSOCIATED WITH
CERTAIN REDEVELOPMENT AGENCY FUNDED HOUSING
PROJECTS; MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH; AND APPROPRIATING FUNDS THEREFOR
D} RESOLUTION OF THE HOUSING AUTHORITY OF THE
CITY OF CHULA VISTA APPROVING A COOPERATION
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Attachment A
March 8, 2011, Item
Page 2 of 6
SUBMITTED BY:
REVIEWED BY:
AGREEMENT WITH THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA; CONSENTING TO PAYMENT
BY THE REDEVELOPMENT AGENCY OF ALL OR A PART OF
THE COST ASSOCIATED WITH CERTAIN HOUSING ~
PROJECTS; AND APPROPRIATING FUNDS THEREFOR ~.Y
GARY HALBERT, ASSISTANT CITY MANAGER/DIRECTOR O~`~''
DEVELOPMENT SERVICES
CITY MANAGER 5 l
4/STHS VOTE: YES ^X NO
SUMMARY
The purpose of this item is for the City Council and Redevelopment Agency (Agency) to provide
the necessary findings to the Housing Authority (Authority) to implement identified housing
projects. The source of funding will be the Tax increment, other revenue received by the Agency
and available Redevelopment Low and Moderate Income Housing fund balances in the current
fiscal year and forthcoming fiscal years. The Agency and Authority desire to formalize the terms
and payment schedule through a Cooperation Agreement.
ENVIRONMENTAL REVIEW
The proposed approval of the Agreement is not a "project for the purposes of the California
Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guidelines)
because, consistent with the CEQA Guidelines Section 15738(b)(4), while the Agreement
commits the Agency to fund an affordable housing program, with potential projects identified, it
does not commit the Housing Authority to implement any particular housing project without
appropriate environmental review.
Notwithstanding the foregoing, determination of what constitutes a "project" under CEQA is
complex and may be the subject of differing interpretation. If the contemplated action is
determined to be a "project" under CEQA, for the reasons stated herein, there is still no
possibility that the activity may have a significant effect on the environment. Therefore,
pursuant to Section 1506i(b)(3) of the State CEQA Guidelines, the activity is not subject to
CEQA.
The Agreement under consideration specifically provides that the Housing Authority shall not be
obligated to complete any individual project if the Housing Authority later determines that such
project is not exempt from CEQA, has not already undergone complete CEQA review, and
requires the preparation of a mitigated negative declaration, environmental impact report (EIR)
or supplemental or subsequent EIR. In that regard, the Agreement states that the Housing
Authority shall retain the discretion to impose mitigation measures and to adopt project
alternatives, consistent with the requirements of CEQA, that may be identified during future
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March 8, 2011, Item
Page 3 of 6
environmental review of any specific project. Furthermore, even though the Agreement
establishes a funding mechanism, the entirety of the funding support has yet to be established.
RECOMMENDATION
That the Chula Vista Redevelopment Corporation, City Council, Redevelopment Agency and
Housing Authority approve the resolutions.
BOARDSlCOMMISSION RECOMMENDATION
The Chula Vista Redevelopment Corporation is considering a recommendation on the
Cooperation Agreement in joint session on 1Vlarch 8, 2011.
The Housing Advisory Commission reviewed the draft Affordable Housing Strategy on January
26th, 2011.
DISCUSSION
The Redevelopment Agency has adopted aFive-Year Implementation Plan for the Project Areas
that established goals and objectives to support affordable housing. Within the Project Areas and
the surrounding residential areas, the Agency is actively involved in the evaluation of properties
for the acquisition and development of affordable housing ("Projects"- map included as
Attachment 1) to benefit lower and moderate income households. In order to carry out and
implement the City's Housing Element and the Implementation Plan for the Agency's
redevelopment projects and the affordable housing requirements and goals thereof, the Agency
intends to make funding commitments and budget allocations based on estimated tax increment
revenue and debt fmancing structures for the Projects.
In the current budget environment, the Agency's ability to carry out the Projects may be limited.
However, pursuant to Section 33220 of the CRL, certain public bodies, including the Housing
Authority may aid and cooperate in the planning, undertaking, construction, or operation of
affordable housing projects. Historically, the Agency has successfully partnered with the
Housing Authority to implement affordable housing projects throughout the city through the
Authority's issuance of multifamily housing revenue bonds and ongoing monitoring of these
projects. Building on this success, the Agency desires to enter into the subject Cooperation
Agreement for payment of costs associated with certain Redevelopment Agency funded Projects
("Agreement" -Attachment 2} with the Housing Authority for assistance and cooperation in the
implementation and completion of the Projects identified in the Schedule of Projects included as
Exhibit A to the Agreement.
The Schedule of Projects includes CitylAgency findings to subsidize the property acquisition,
development, construction, and operation, monitoring and administration of identified projects
within the redevelopment project areas and surrounding areas to implement the City's and
Agency's affordable housing goals and requirements. Qver the past six months, Agency staff
has been actively working on identifying a general area in which to focus its resources and
Projects to increase affordable housing.
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March 8, 2011, Item
Page 4 of 6
On July 16, 2010, the City issued a Request for Qualifications (RFQ} to actively search for
qualified development teams to secure, design, finance and develop appropriate sites for
affordable housing development. Subsequently on November 2, 2010, the City and Agency
adopted Resolution No. 2010-254 (RDA 2010-2030) certifying a list of four (4) affordable
housing developers to collaboratively work with City staff and a Chula Vista Redevelopment
Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet
the City's most pressing affordable housing needs and contribute to revitalization concurrently.
In the last three months, Agency staff has met with other City staff, a CVRC subcommittee,
affordable housing development partners and community organizations to discuss a strategy to
increase and prioritize affordable housing opportunities based upon the principals of leveraging
its limited resources and maximizing housing, conununity and revitalization benefits. In looking
at the availability of resources and opportunities, existing conditions and needs and using the
principals to focus its resources, Agency staff has identified the Northwest area of the city as a
focus area to acquire properties for the rehabilitation, preservation andfor construction of
affordable housing over the next five years.
Staff has identified a number of properties within the Northwest area that are potential
opportunities, To implement the Agreement, staff is requesting authority to commit funds to
acquire properties for affordable housing, However,. this action does not commit the Housing
Authority to only implement projects in that area. As staff completes its due diligence and
negotiations, Project specific sites, agreements, and other necessary entitlements will be brought
forward to the final decision maker for consideration.
As some properties may be outside of the Redevelopment Project Areas, findings of benefit are
required by both the City Council and Redevelopment Agency. Benefits to the use of funds for
property outside of the project azea which benefit the project include:
The use of the Agency's Housing Funds from the Project Area as a revenue fund for low-
and moderate-income housing projects regardless of their location provides a consistent,
institutional financing mechanism for low- and moderate- income housing within the City
of Chula Vista.. The revenue enables the Redevelopment Agency to expedite and
maximize housing production and capacity to provide financial assistance based upon
project viability, not project location.
• The provision of affordable housing is, in itself, a fundamental purpose of
redevelopment. Any increase in or preservation of the stock of available housing for
low- and moderate-income households benefits the surrounding area and the City of
Chula Vista, including the Project Area providing the fiends, by encouraging local
accommodations for a diverse workforce and consumers at various income levels
throughout the City of Chula Vista.
The use of Agency housing funds outside a project area avoids over-concentration of
affordable housing in a project azea and promotes a diverse economic community.
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March 8, 2011, Item_~____
Fage 5 of 6
• The acquisition, rehabilitation, preservation andlor construction of affordable housing
helps fulfill the goals of the Redevelopment Plan and Implementation Plans (Plans) for
the Project Area, which include improving, promoting and preserving the positive
neighborhood characteristics of the Project Area, promoting varied housing opportunities,
supporting and promoting the growth and vitality of the Project Area business
environment and providing direction, purpose and climate for combined public and
private investment which will result in benefits to the community as a whole.
• Housing funds may be used for owner-occupied home rehabilitation loans that would
support home-ownership by low- and moderate-income residents, stabilizing single-
family home-ownership and residential neighborhoods.
• The use of Housing Funds will provide assistance with and support energy conservation,
energy efficiency and water conservation.
• Historically, credit for the production of affordable units is given annually to agencies by
the Califomia Housing and Community Development Department, in accordance with
California Redevelopment Law. If tax increment funds are used for the development of
affordable units outside of the source project area, a maximum of one-half credit for each
unit produced may be awarded to the source project area. The benefit to the Project Area
is the potential to receive credit toward the housing obligations defined within its
Redevelopment Plan and its Five-Year Implementation Plan in exchange for funding
affordable housing outside the Project Area.
Documentation for such benefits may further be found in the Redevelopment Plan,
Implementation Plan, and the Housing Element, as found in the General Flan. All of which are
incorporated by reference into this report.
By entering into the Agreement, the Authority will commit to aid and cooperate with the Agency
to expeditiously implemen# the Projects in accordance with the respective Redevelopment Plans
and Implementation Plans for the Project Areas and ensure that the objectives of the
Redevelopment Plans and Implementation Plans are fulfilled within the time limits of the Project
Areas. In order to ensure the timely implementation and completion of the Projects, the Agency
will pledge to provide to the Housing Authority available Redevelopment Low and Moderate
Income funds from Tax Increment, other revenue received by the Agency and available fund
balances in the current fiscal year and forthcoming fiscal years in amounts equal to the cost to
the Authority to carry out the Projects. The Authority will provide the Agency with regular
progress reports on the use of funds and the development of the Projects for which payment is
made by the Agency.
The obligations of the Agency under the Agreement will be paid from Tax Increment, other
revenue received by the Agency and available fund balances in amounts not less than those set
forth in the Payment Schedule attached to the Agreement as Exhibit 2 and otherwise necessary to
reimburse the Authority for the cost to the Authority of performing its obligations. The Payment
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March 8, 2011, Item i
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Schedule may be revised from time to time as mutually agreed by the Authority and Agency
provided that the revised schedule will allow the timely completion of the Projects in conformity
with the Redevelopment Plans and the Implementation Plans. All activities paid for with these
funds will be in accordance with CRL {H&S 33334}.
The obligations of the Agency will constitute an indebtedness of the Agency for the purpose of
carrying out the Redevelopment Plans for the Project Areas, which indebtedness will be
subordinate to payments due on any bonds, notes or other debt instruments of the Agency
incurred or issued to finance the Projects, including any pledge of tax increment revenues from
the Project Areas.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the Chula Vista Redevelopment Corporation,
Redevelopment Agency, and Housing Authority and has found no property holdings within 500
feet of the boundaries of the properties that are the subject of this action.
CURRENT YEAR FISCAL IMPACT
Current estimated Fund Balance in the Law and Moderate Income Housing .Fund in the
approximate amount of $9.2 million would be transferred to the Housing Authority. New
appropriations in the same amount would be created in the Housing Authority budget to acquire
identified properties.
ONGOING FISCAL IMPACT
The terms of the Cooperation Agreement anticipates future revenue from the Low and Moderate
Income Housing Fund to the Housing Authority for the casts associated with the identified
affordable housing projects.
ATTACHMENTS
1. Map of Potential Sites Identified in Cooperation Agreement
2. Cooperation Agreement (Affordable Housing Projects)-To be provided under separate cover
Prepared by: Leilani Hines, Principal Project Coordinator and fimanda Mills, Housing Manager
Development Services- Housing Division
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_ -~°- -. = CITY CC} U N C i L &~
- ~;~~~~~ REDE,VELDP~1VtE~T ,4GENCY
.__ . - - ~, ~GEN~A STATE~E~(T
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.ter, ~ ~~t~{
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MARCH 8, 2011, Item_~'
ITEM TITLE: CONSIDERATION BY THE CHULA VISTA
REDEVELOPMENT CORPORATION (CVRC), THE CITY
COUNCII. OF THE CITY OF CHULA VISTA, AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA OF COOPERATION AND PUBLIC IMPROVEMENT
AGREEMENTS BETWEEN THE CITY OF CHULA, VISTA AND
THE REDEVELOPMENT AGENCY RELATED TO THE
INSTALLATION AND CONSTRUCTION OF PUBLIC
IMPROVEMENTS OF THE BAYFRONT MAS'T'ER PLAN,
THIRD AVENUE STREETSCAPE MASTER PLAN, AND
MAINSTREET MASTER PLAN; COMMITTING FUNDS FOR
THOSE PLANNED IMPROVEMENTS, MAIHING FINDINGS AS
REQUIRED; AND APPROPRIATING FUNDS FROM 'THE
AVAILABLE FUND BALANCE TO THE THIRD AVENUE
STREETSCAPE MASTER PLAN AND MAIN STREET
MASTER PLAN
A. RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION {CVRC)
RECOMMENDING THAT THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AND THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA APPROVE COOPERATION AND
PUBLIC IMPROVEMENTS AGREEMENTS BETWEEN THE
CITY OF CHULA VISTA AND THE REDEVELOPMENT
AGENCY RELATED TO THE BAYFRONT MASTER PLAN,
THE THIRD AVENUE STREETSCAPE MASTER PLAN, AND
THE MAIN STREET MASTER PLAN
B. RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING A COOPERATION
AND PUBLIC IMPROVEMENTS AGREEMENT WITH THE
REDEVELOPMENT AGENCY OF THE CTTY OF CHULA
VISTA; CONSENTING TO PAYMENT BY THE
REDEVELOPMENT AGENCY OF ALL OR A PART OF THE
COST OF THE LAND AND IlvIPROVEMENTS RELATED TO
THE INSTALLATION AND CONSTRUCTION OF CERTAIN
BAYFRONT MASTER PLAN PUBLIC IMPROVEMENTS;
AND MAKING CERTAIN FINDINGS IN CONNECTION
THEREWITH
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C. RESOLUTION OF TAE CITY COUNCIL OF THE
CITY OF CHULA VISTA .APPROVING A COOPERATION
AND PUBLIC IMPROVEMENTS AGREEMENT WITH THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA; CONSENTING TO PAYMENT BY THE
REDEVELOPMENT AGENCYOF ALL OR A PART OF THE
COST OF THE LAND AND IMPROVEMENTS RELATED TO
THE INSTALLATION AND CONSTRUCTION OF CERTAIN
THIRD AVENUE STREETSCAPE MASTER PLAN PUBLIC
IMPROVEMENTS; MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH; AND APPROPRIATING
FUNDS THEREFOR
D. RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING A COOPERATION
AND PUBLIC IMPROVEMENTS AGREEMENT WITH THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA; CONSENTING TO PAYMENT BY THE
REDEVELOPMENT AGENCYOF ALL OR A PART OF THE
COST OF THE LAND AND IMPROVEMENTS RELATED TO
THE INSTALLATION AND CONSTRUCTION OF CERTAIN
MAIN STREET MASTER PLAN PUBLIC IlVIPROVEMENTS;_
NiAI~NG CERTAIN FINDINGS IN CONNECTION
THEREWITH; AND APPROPRIATING FUNDS THEREFOR
E. RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING A
COOPERATION AND PUBLIC IMPROVEMENTS
AGREEMENT WITH THE CITY OF CHULA VISTA;
COMMITTING FUNDS AND CONSENTING TO PAYMENT
BY THE REDEVELOPMENT AGENCY OF ALL OR A PART
OF THE COST OF THE LAND AND IMPROVEMENTS
RELATED TO THE INSTALLATION AND CONSTRUCTION
OF THOSE CERTAIN BAYFRONT MASTER PLAN PUBLIC
IlVIPROVEMENTS; MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
F. RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING A
COOPERATION AND PUBLIC IINPROVENLENTS
AGREEMENT WITH THE CITY OF CHULA VLSTA;
COMMITTING FUNDS AND CONSENTING TO PAYMENT
BY THE REDEVELOPMENT AGENCYOF ALL OR A PART
OF THE COST OF THE LAND AND IMPROVEMENTS
RELATED TO THE INSTALLATION AND CONSTRUCTION
OF THOSE CERTAIN THIRD AVENUE STREETSCAPE
2-2
7-15
Item ~
Page 3
MASTER PLAN IMPROVEMENTS; MAKING CERTAIN
FINDINGS IN CONNECTION THEREWITH; AND
APPROPRIATING FUNDS THEREFOR
G. RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CIIULA VISTA APPROVING A
COOPERATION AND PUBLIC IMPROVEMENTS
AGREEMENT WITH THE CITY OF CHULA VISTA;
COMNIITTING FUNDS AND CONSENTING TO PAYMENT
BY THE REDEVELOPMENT AGENCYOF ALL OR A PART
OF THE COST OF THE LAND AND LvIPROVEMENTS
RELATED TO THE INSTALLATION AND CONSTRUCTION
OF THOSE CERTAIN MAIN STREET MASTER PLAN
IMPROVEMENTS; MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH; AND APPROPRLATING
FUNDS THEREFOR
SUBMITTED BY: GARY HALBERT, ASSIST CITY MANAGER/DIRECTOR OF
DEVELOPMENT SERVICES~~,~{
REVIEWED BY: CITY MANAGER /~~ ~
415TFIS VOTE: YE5 ~ NO
SUMMARY
The Redevelopment Agency ("RDA") has adopted the 2010-2014 Five-Year Implementation
Plan ("Five-Year Implementation Plan") that established goals and objectives to support public
improvements and community revitalization for the two Project Areas that comprise six
underlying Project Areas. Within the Project Areas, the Redevelopment Agency is actively
involved in the development of programs and activities ("Projects") associated with each goal
and objective in the Implementation Plan that reinvests in the City. The Projects that are the
subjects of this report include the Bayfront Master Plan, Third Avenue Streetscape Master Plan,
and the Main Street Streetscape Master Plan. To carry out the Projects, it is proposed the City
and the Redevelopment Agency eater into cooperation ~ and public improvements agreements
wherein the Redevelopment Agency would commit to provide funding for such Projects.
ENVIRONMENTAL REVIEW
1. Bayfront Master Plan Cooperation Agreement
Pursuant to the California Environmental Quality Act ("CEQA"} the San Diego Unified Port
District, as Lead Agency, certified the Final Environmental Impact Report {"FEIR"). The City
Council of the City of Chula Vista, acting as a Responsible Agency, on the basis of the findings
as set forth in actions taken by the City Council on May 18, 2010, after having considered the
FE1R made the required Findings of Fact pursuant to CEQA Guidelines Section 15091 and
15096(h) and thereby adopted a Statement of Overriding Considerations and Mitigation
Monitoring and Reporting Program in accordance with CEQA Guidelines Section 1093 and
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7-16
Item ~.
Page 4
15097, respectively; therefore, no further or other CEQA actions or determinations are required
relating to findings and determinations .hereunder for approval of the Cooperation and Public
Improvements Agreement (collectively "Approved FEIR").
2. Third Avenue Streetscape Master Plan Cooperation Agreement
Pursuant to the California Environmental Quality Act ("CEQA"} an April 26, 2007, the City,
acting as Lead Agency, certified Final Environmental Impact Report-06-O1 ("FEIR-06-O1") for
the Urban Core Specific Plan ("UCSP"). On January 25, 2011, the City, acting as Lead Agency,
having found and determined that certain amendments to the UCSP, including the subject Third
Avenue Streetscape Master Plan, would not result in significant unmitigated impacts and that
only minor technical changes or additions to FEIR-06-O1 were necessary and that none of the
conditions described in Section 15162 of the State CEQA Guidelines calling for the preparation
of subsequent document had occurred, adopted an Addendum to FEIR-Q6-O1; therefore, approval
of the subject Cooperation and Public Improvements Agreement requires no further CEQA
actions or determinations. .
3. Main Street Streetscape Master Plan Cooperation Agreement
The proposed appxoval of the Agreement is not a "project" for purposes of the California
Environmental Quality Act (CEQA) and the State CEQA. Guidelines (CEQA Guidelines)
because, consistent with CEQA Guidelines Section 15378(b)(4), while the Agreement commits
the Agency to funding public improvements, it does not eomnmit the City to ixnplement any
particular public improvement without appropriate environmental review.
The Agreement specifically provides that the City shall not be obligated to complete any
individual project if the City later determines that such project is not exempt from CEQA, has
not already undergone complete CEQA review, and requires the preparation of a mitigated
negative declaration, environmental impact report (EIR) or supplemental or subsequent EIR. In
that regard, the Agreement states that the City shall retain the discretion to impose mitigation
measures and to adopt project alternatives, consistent with the requirements of CEQA, that may
be identified during future environmental review of any specific project.
RECOMMENDATION
That the City Council and the Redevelopment Agency approve the resolutions.
BOARDS/COMMISSION RECOMMENDATION
On March 8, 2011, the Chula Vista Redevelopment Corporation (CVRC} will meet to consider
whether to recommend that the Redevelopment Agency approve the Cooperation and Public
Improvements Agreements for the Bayfront Master Plan, Third Avenue Streetscape Master Plan
and Main Street Streetscape Master Plan. Staff is recommending that the Chula Vista
Redevelopment Corporation recommend that the Redevelopment Agency approve the
agreements.
DISCUSSION
The Redevelopment Agency wishes to continue its progress in meeting the goals and objectives
of the Five-Year Implementation Plan. Specifically, the Redevelopment Agency seeks to
continue implementation of the Bayfront Master Plan, the Third Avenue Streetscape Master
. 2-4
7-17
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Page 5
Plan, and the Main Street Streetscape Master Plan. Each of these projects was funded in the FY
2010-2011 Redevelopment Agency Budget. To ensure completion of these three projects, it is
proposed that the City and Redevelopment Agency enter into cooperation and public
improvements agreements wherein the Redevelopment Agency would commit specified funds to
the City to pay for public improvements.
The California Community Redevelopment Law, specifically Health and Safety Code Sections
33220 and 33445, provides that certain public bodies, including the City, may aid and cooperate
in the planning, undertaking, construction, or operation of redevelopment projects, and that
redevelopment agencies may pay for all or a part of the costs of the land for and/or the
construction and installation of public improvements subject to findings of benefit to the project
area and related statutory requirements. In this regard, the Redevelopment Agency and City
Council of the City of Chula Vista desire to enter into Cooperation and Public Improvements
Agreements to commit and expend tax increment funds for projects that meet the goals and
objectives in the adopted Five-Year Implementation Plan.
Health and Safety Code section 33445, which permits a Redevelopment Agency to pay for all or
part of the costs of the land for andlor the construction and installation of public improvements,
requires the RDA and City to make specific findings, including: (i) that the public
improvements are a benefit to the project area by helping eliminate blight, (2} that there are no
other reasonable means of financing for such public improvements, and (3} the public
improvements are consistent with the implementation plan adopted pursuant to Health and Safety
Code section 33490. Attachments A, B and C provide the required facts and determinations
which support the findings required by Health and Safety Code section 33445.
The Bayfront Master Plan, Third Avenue Streetscape Master Plan, and the Main Street
Streetscape Master Plan and theix attendant improvements involve tl-e following:
Bayfront Master Plan Public Improvements
In 2002, the San Diego Unified Port District ("District") and the Chula Vista Ciry Council and
Redevelopment Agency began work tv create a master plan for development of the
approximately 556-acre Chula Vista Bayfront (the "Chula Vista Bayfront"} located on the
southeastern edge of San Diego Bay in the City of Chula Vista. The purpose of the master plan
is to reconfigure the 497 acres of land and 59 acres of water uses which comprise the Chula Vista
Bayfront by connecting the land and water acres in a way that will promote public access to, and
engagement with, the water while enhancing the quality and protection of key habitat areas, with
the ultimate goal of creating aworld-class bayfront through strong planning and design,
economic feasibility and community outreach.
Cn May 18, 2010, the District, as Lead Agency of the project, certified a Final Environmental
Impact Report for the Chula Vista Bayfront Master Plan and Port Master Plan Amendment (UPD
# 83356-EIR-658; SCH # 2005081077} (the "FEIR"). Key components of the CVBMP include:
a signature park, open space areas and cultural use; impraveci visual corridors to San Diego Bay;
a resort and convention center and other hotels; residential and mixed-use office/commercial
recreation uses; waterfront retail uses and public gathering spaces around the harbor, a new
commercial harbor and improved navigation channel; a public promenade and bike trail through
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7-18
Item ~.
Page 6
the entire bayfront; and large buffer zones to protect adjacent sensitive resources. The RDA has
appropriated approximately $5,000,000 in cuzxent and prior budget cycles for the preparation of
the Plan. The Cooperation and Public Improvements Agreement proposes to contribute up to
$136 million from future tax increment to ensure the completion of the Bayfront Master Plan
public improvements.
Proposed public improvements for the Bayfront Master Plaza include the following projects:
1. Public Infrastructure, which include, without limitation, (a) the installation, repair and
replacement of sidewalks along streets and other public rights-of--way, {b) the installation
`of streetscape improvements such as sidewalks, lighting, landscaping and street furniture
in and along streets and other public rights-of--way, (c) the installation of traffic signals
and streetlights in and along streets and other public rights-of--way, (d} the installatian,
repair and replacement of roadways and medians, (e) the installation of all necessary wet
and dry utilities including drainage and stormwater facilities, {f) other multi-modal,
public and private vehicular transportation, traffic, bicycle and pedestrian improvements,
and (g) the installation of other transportation and traffic improvements; and
2. Parks and Open Space, which include, without limitation, (a} the design and construction
of public park improvements, and (b} the restoration of natural habitat and the creation
and enhancement of urban trail systems
Third Avenue Streetsca~ae Master Plan Public Improvements
The 2005 General Plan and the 2007 Urban Core Specific Plan {UCSP} identify Chula Vista's
older downtown core, Third Avenue Village, as an urban center with great emphasis placed on
linking higher density housing and mixed uses around a new hierarchy of transportation modes;
pedestrians, transit, bicyclists and cars. As a key activity center, the Third Avenue Village area
plays a critical role ifl activating Chula Vista's Urban Core. Plans for pedestrian improvements
and traffic calming elements were introduced along Third Avenue in the Village District to slow
traffic and create a more pedestrian-friendly environment. Improvements such as bulbouts
(sidewalk extensions), narrowed and/or reduced travel lanes, special paving at crosswalks and
median refuge islands, paseos linking public parking to the maizt commercial corridor and
pedestrian walkways are emphasized for this area. Bicycle transit and upgraded bikeway
facilities throughout the area aze recommended for both recreational and commuting users. A
Transit Focus Area at Third Ave and H Street provides multi-modal opportunities for both local
and regional transit stations located at I-5/H Street and I-5/E Street which link to the San Diego
Trolley's Blue Line.
One of the key implementing projects identified in the LyCSP was the preparation of a streetscape
master plan for the Third Avenue corridor between E and H Streets. Staff initiated work an the
Third Avenue Streetscape Mastex Plan in May of 2008, by first conducting a needs assessment in
close collaboration with the community and the Third Avenue Village Association (TAVA) to
ultimately design a master plan. that meets the community's needs and the Smart Growth
precepts identified in the UCSP. The Third Avenue Streetscape Master Plan provides detailed
planning and identifies capital improvements to the existing infrastructure system to enhance
walkability, improve transit options, modify traffic circulation patterns to be more pedestrian
friendly, and create.a more vibrant urban center from E Street to H Street. Of the total projected
$9 million budget far the Third Avenue Streetscape Master Plan, the RDA has already
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7-19
Item
Page 7
contributed more than $1 million towards the preparation of the Plan and construction of capital
improvements, and it is proposed to appropriate an additional $2.5 million from the RDA
available balance. The Cooperation and Public Improvements Agreement proposes to contribute
up to $4 million from future tax increment to ensure the completion of the Third Avenue
Streetscape Master Plan public improvements.
Proposed public improvements for the Third Avenue Streetscape Master Plan include the
following projects:
Public Infrastructure, which include, without limitation, {a) the installation, repair and
replacement of sidewalks along streets and other public rights-of--way, (b) the installation
of Streetscape improvements such as sidewalks, lighting, landscaping and street furniture
in and along streets and other public rights-of--way, (c) the installation of traffic signals
and streetlights in and along streets and other public rights-of--way, {d) the installation,
repair and replacement of roadways and medians, (e) other multi-modal, public and
private vehicular transportation, traffic, bicycle and pedestrian improvements, and (f} the
installation of other transportation and traffic improvements
Main Street Streetsca e Master Flan Public Im rovements
The Chula Vista 2005 General Plan designates the Main Street District as one of the five "areas
of change." The General Pian vision for the Main Street District is the continued development
of the area with industrial uses to become the primary industrial area of Southwest Chula
Vista. One of the General Plan's implementing tools is a Streetscape master plan for the Main
Street corridor between Industrial Boulevard and I-$05. Staff initiated work on the Main
Street Master Plan in July 2009, by conducting urban workshops to gather input from the area's
stakeholders and to develop a needs assessment to ultimately design a master plan that meets the
community's needs and the vision identified in the General Plan. The Main Street Streetscape
Master Plan will pxovide detailed planning and identify capital improvements to the existing
infrastructure system by improving the drainage system, beautifying the streets with landscape,
and creating multi-modal and complete streets by balancing the needs of pedestrians, bicyclists,
vehicles, and public transportation.
On January 8, 2011, the Gity Council held a public hearing amending certain portions of the
Chula Vista Municipal Code, which. included a reference to the ongoing preparation of the Main
Street Streetscape Master Plan. The RDA has appropriated approximately $200,000 in current
and prior budget. cycles for the preparation of the Plan. The Cooperation and Public
Improvements Agreement proposes to contribute up to $32 million from fixture tax increment to
ensure the completion and implementation of the Main Street Streetscape Master Plan public
improvements. ,
Proposed public improvements for the Main Street Streetscape Master Plan include the following
projects: ,
Public Infrastructure, which include, without limitation, (a) the installation, repair and
replacement of sidewalks along streets and other public rights-of--way, (b) the installation
of streetscape improvements such as sidewalks, lighting, landscaping and street furniture
in and along streets and other public rights-of--way, (c} the installation of traffic signals
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Page 8
and streetlights in and along streets and other public rights-af--way, (d} the installation,
repair and replacement of roadways and medians, {e} the installation of all necessary wet
and dry utilities including drainage and stormwater facilities, (fl other multi-modal,
public and private vehicular transportation, traffic, bicycle and pedestrian improvements,
and (g) the installation of other transportation and traffic improvements
Cooperation and public improvements agreements will ensure that the goals and activities of the
Bayfroat Master Plan, Third Avenue Streetscape Master Plan, and the Main Street Streetscape
Master Plan come to fruition. As part of the cooperation and public improvements agreements,
the City will commit to cooperate with the RDA and cause the projects to be expeditiously
unplemented in accordance with the respective Redevelopment Plans and Five-Yeaz
Implementation Plan thus ensuring that the objectives of the Redevelopment Plans and Five-Year
Implementation Plan are fulfilled within the time effectiveness of the Project Areas.
In order to ensure the timely implementation and completion of the Projects, the RDA will
pledge to provide to the City available Net Tax Increment, other revenue received by the RDA
and available fund balances in the current fiscal year and forthcoming fiscal years in amounts
equal to the cost to the City to carry out the Projects. The City will provide the RDA with
quarterly progress reports on the use of funds and the development and construction of the
Projects for which payment is made by the RDA.
"Net Tax Increment" in the agreements is defined as any tax increment generated from the
Project Areas, net of: 1} amounts paid to affected taxing agencies; 2) Redevelopment
administration fees charged by the County of San Diego; 3) existing debt service payments; and
4) existing contractual obligations of the RDA, existing as of the date of this agreement, or any
lawful successor of the RDA. The obligations of the RDA under the Agreement will be paid
from Net Tax Increment, other revenue received by the RDA and available fluid. balances in
amounts not less than those set forth in the Payment Schedule attached to the Cooperation and
Public Improvements Agreement as Exhibit 2 and otherwise necessary to reimburse the City for
the cost to the City of performing its obligations. The Paymeat Schedule may be revised from
time to time as mutually agreed by the City and RDA provided that the revised schedule will
allow the timely completion of the Projects in conformity with the Redevelopment Plans and the
Implementation Plans.
The obligations of the RDA will constitute an indebtedness of the RDA for the purpose of
carryirig out the Redevelopment Plans .for the Project Areas, which indebtedness will be
subordinate to payments due on any bonds, notes or other debt instruments of the RDA incurred
or issued to finance the Projects, including any pledge of tax increment revenues from the Project
Areas. .
The proposed Cooperation and Public Irprovements Agreements are included with this report as
attachments D, E, and F.
2-8
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Page 9
DECISION MAKER CONFLICT
Resolution A
Staff has reviewed the property holdings of the Chula Vista Redevelopment Corporation and has
found that Director Salas has property holdings within 500 feet of the boundaries of the property
which is the subject of this action.
Resolutions B. C and D
Staff has reviewed the property holdings of the City Council of the City of Chula Vista and has
found no property holdings within 500 feet of the boundaries of the property which is the subject
of this action.
_Resolutions E, F and G
Staff has reviewed the property holdings of the Redevelopment Agency of the City of Chula
Vista and has found no property holdings within 500 feet of the boundaries of the property which
is this action,
CURRENT YEAR FISCAL IMPACT
There is no impact to the General Fund as a result of this action. The available fund balance of
approximately $3 million in Redevelopment Agency funds will be appropriated and distributed
with $2.5 million to the Third Avenue Streetscape Master Plan and $500,000 to the Main Street
Streetscape Master Plan.
bNGOING FISCAL IMPACT
There is no impact to the General Fund as a result of this action. The obligations of the RDA
under the Cooperation Agreement will 'be paid from Net Tax Increment, other revenue received
by the RDA and available fund balances ("RDA Funds") in amounts not less than those set forth
in the Payment Schedule and as otherwise necessary to reimburse the City for the cost to the City
of performing its obligations. RDA Funds from the Project Areas as set forth in the Payment
Schedule will be contractually committed in this current fiscal year and forthcoming fiscal years.
ATTACHMENTS
A. Determinations pursuant to Health and Safety Code section 33445 for Sayfront
Master Plan
$. Determinations garsuant to Health and Safety Code section 33445 for Third
Avenue Streetscape Master Plan
C. Determinations pursuant to Health and Safety Code section 33445 for Main Street
Streetscape Master Plan
D. Cooperation and Publ'ec Improvement Agreement (Bayfront Master Plan Public
Improvements}
E. Cooperation and Public Improvement Agreement (Third Avenue Streetscape
Master Plan Public Improvements}
F. Cooperation and Public Improvement Agreement (Main Street Streetscape Master
Plan Public Improvements)
Prepared by: Drern Do> Senior Project Coordinator, Development Services-Redevelopment and Housing
2-9
7-22
CITY COUNCIL RESOLUTION NO. 2012-
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY RESOLUTION NO.2012-
HOUSING AUTHORITY RESOLUTION NO.2012-
JOINT RESOLUTION OF THE CITY OF CHULA
VISTA CITY COUNCIL, SUCCESSOR AGENCY TO
THE REDEVELOPMENT AGENCY, AND HOUSING
AUTHORITY TO RESCIND ACTIONS APPROVED ON
MARCH 8, 2011 BY THE CITY COUNCIL,
REDEVELOPMENT AGENCY AND HOUSING
AUTHORITY IN ORDER TO COMPLY WITH AB 1X 26
AND TO THEREAFTER APPROPRIATE FUNDS AS
REQUIRED
WHEREAS, on March 8, 2011, the City Council and Redevelopment Agency entered
into an agreement and took actions to appropriate funds from the Redevelopment Agency to the
General Fund for the Third Avenue capital improvement which supports the implementation of
the Redevelopment Plan for the Project Area; and
WHEREAS, on March 8, 2011, the Housing Authority and Redevelopment Agency
entered into an agreement and took actions to appropriate funds from the Redevelopment
Agency to the Housing Authority for affordable housing related projects; and
WHEREAS, since the adoption of these resolutions the State Legislature with AB 1X 26
has determined that these agreements are not valid; and
WHEREAS, the funds transferred to the General Fund and the Housing Authority need to
be returned to the Redevelopment Agency fund, therefore staff is requesting the necessary
appropriations to reverse the transfers resulting from the March 8, 2011 Council/Housing
Authority/Redevelopment Agency action; and
WHEREAS, the transfer from the General Fund and the Housing Authority to the
Redevelopment Agency fund will allow staff to correctly reflect the Redevelopment Agency's
assets as of January 31, 2012 ;and
WHEREAS, the requested appropriations are less than the appropriations approved on
March 8, 2011 due the actual available (unassigned) fund balance of the Redevelopment Agency
funds as of June 30, 2011; and
WHEREAS, approval of this resolution will eliminate the General Fund funding in the
Third Avenue Streetscape CIP, these funds will then be transferred back to the Redevelopment
Agency fund resulting in no net fiscal impact to the General Fund and a positive net impact of
$2.5 million to the Redevelopment Agency fund; and
7-23
WHEREAS, approval of this resolution will result in the transfer of $4.25 million from
the available fund balance of the Housing Authority fund to the Redevelopment Agency fund;
there is no net fiscal impact to the Housing Authority as is it will no longer pursue the acquisition
of the Best Western property, this transfer will result in a positive impact of $4.25 in the
Redevelopment Agency fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista, the Chula Vista Housing Authority, and the Successor Agency to the Redevelopment
Agency does hereby rescind the March 8, 2011 actions stated above and approve the following
appropriations:
• A reduction of $2,500,000 in the General Fund's Capital Improvement Projects
expenditure category for the Third Avenue Streetscape CIP and an appropriation
of $2,500,000 to the General Fund's Transfer Out expense category to transfer
these funds to the Redevelopment Agency fund.
• An appropriation of $4,250,000 million to the Transfer Out expense category from
the available fund balance of the Housing Authority fund to the Redevelopment
Agency fund.
• An appropriation of $6,750,000 to the Transfer In revenue Category of the
Redevelopment Agency fund from the General Fund ($2,500,000) and the
Housing Authority ($4,250,000).
Presented by
Maria Kachadoorian
Director of Finance/Treasurer
Approved as to form by
~~~~
Glen R. Googins
City Attorney
7-24
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY RESOLUTION NO. 2012-
HOUSING AUTHORITY RESOLUTION NO.2012-
JOINT RESOLUTION OF THE SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY AUTHORIZING THE
FINANCE DIRECTOR TO TRANSFER ALL ASSETS,
LIABILITIES AND FUND BALANCE AS OF
JANUARY 31, 2012 TO THE SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY AND THE
HOUSING AUTHORITY IN ACCORDANCE WITH AB
1X 26
WHEREAS, on August 26, 2011, the City Council elected to serve as the Successor
Agency to the Redevelopment Agency and such Successor Agency will oversee the winding
down of the Redevelopment Agency (RDA) and continue to oversee and implement all legally
obligated contracted work, projects, and programs; and
WHEREAS, the Chula Vista Housing Authority became the Housing Successor Agency
as being a local housing authority in the territorial jurisdiction of the former redevelopment
agency (See Health and Safety Code Sec. 34176 (b)(2)); and
WHEREAS, staff is taking the necessary steps to transfer the Redevelopment Agency
assets, liabilities, and fund balance as of January 31, 2012 to the Successor Agency to the
Redevelopment Agency and the Successor Housing Authority in accordance with AB 1 X 26; and
WHEREAS, in order to provide a clear transition from the RDA to the Successor to the
Redevelopment Agency, separate funds have been established to account for Successor Agency
transactions beginning on February 1, 2012; and
WHEREAS, the City of Chula Vista will prepare financial statements for the
Redevelopment Agency as of January 31, 2012 that will be audited by the City's independent
auditors and may require additional appropriations yet to be determined.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Redevelopment Agency and Housing Authority that they authorize the Finance Director to
transfer all assets, liabilities, and fund balance as of January 31, 2012 to the Successor Agency to
the Redevelopment Agency and the (Successor) Housing Authority in accordance with AB 1X
26.
7-25
Resolution No.
Page 2
Presented by
Maria Kachadoorian
Director of Finance/Treasurer
Approved as to form by
~~i'(.--
Glen R. Googins
City Attorney
7-26
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY RESOLUTION NO.2012-
RESOLUTION OF THE SUCCESSOR AGENCY TO
THE REDEVELOPMENT AGENCY AUTHORIZING
THE FINANCE .DIRECTOR TO APPROPRIATE FUNDS
NECESSARY TO MEET EXISTING OBLIGATIONS
FOR THE CURRENT FISCAL YEAR 1N THE NEWLY
ESTABLISHED SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY FUNDS
WHEREAS, on August 26, 2011, the City Council elected to serve as the Successor
Agency to the Redevelopment Agency for the City of Chula Vista and such Successor Agency
will oversee the winding down of the Redevelopment Agency (RDA); and
WHEREAS, the Successor Agency will oversee and implement all legally obligated
requirements, contracted work, projects, and programs; and
WHEREAS, staff is taking the necessary steps to transition the former Redevelopment
Agency of the City of Chula Vista to the Successor Agency to the Redevelopment Agency; and
WHEREAS, in order to provide a clear transition from the RDA to the Successor Agency
to the Redevelopment Agency, separate funds have been established to account for Successor
Agency transactions beginning on February 1, 2012; and
WHEREAS, the requested appropriations to the Successor Agency funds reflect the costs
included in the Recognized Obligations Payment Schedule which consists of payments for bonds
and loans, payments required by governments (except pass-through payments), court judgments
and settlements, legal contracts and agreements, and contracts necessary for continued
administration; and
WHEREAS, the budget for the Successor Agency fund for fiscal year 2012-13 will be
included as part of the City Manager's Proposed Budget for Fiscal Year 2012-13 that will be
considered by Council later this year; and
WHEREAS, the City of Chula Vista will prepare financial statements for the
Redevelopment Agency as of January 31, 2012 that will be audited by the City's independent
auditors and may require additional appropriations yet to be determined.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Redevelopment Agency that it authorizes the Finance Director to appropriate funds necessary to
meet existing obligations for the current fiscal year in the newly established Successor Agency
Funds from the available (unassigned) fund balance of said fund.
7-27
Resolution No.
Page 2
Presented by
Maria Kachadoorian
Director of Finance/Treasurer
Approved as to form by
~~~` (,
Glen R. Googins
City Attorney
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SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY RESOLUTION NO. 2012-.
RESOLUTION OF THE SUCCESSOR AGENCY TO
THE REDEVELOPMENT AGENCY AUTHORIZING
THE TRANSFER OF 4.0 REDEVELOPMENT AGENCY
POSITIONS TO THE SUCCESSOR AGENCY AND
APPROPRIATING FUNDS TO THE PERSONNEL
SERVICES CATEGORY ACCORDINGLY
WHEREAS, on August 26, 2011, the City Council elected to serve as the Successor
Agency to the Redevelopment Agency for the City of Chula Vista and such Successor Agency
will oversee the winding down of the Redevelopment Agency (RDA); and
WHEREAS, the Successor Agency will oversee and implement all legally obligated
requirements, contracted work, projects, and programs; and
WHEREAS, staff is taking the necessary steps to transition the former Redevelopment
Agency of the City of Chula Vista to the Successor Agency to the Redevelopment Agency; and
WHEREAS, in order to provide a clear transition from the RDA to the Successor Agency
to the Redevelopment Agency, separate funds have been established to account for Successor
Agency transactions beginning on February 1, 2012; and
WHEREAS, the fiscal year 2011-12 budget for the Redevelopment Agency includes 4.0
positions -Assistant Director of Redevelopment and Housing (1.0), Senior Project Coordinator
(2.0), and Senior Administrative Secretary (1.0); and
WHEREAS, as part of closing out the Redevelopment Agency, staff is recommending
transferring these 4.0 positions from the Redevelopment Agency fund to the Successor Agency
fund; and
WHEREAS, the estimated personnel costs for Successor Agency staff are approximately
$225,000 for February to June 2012; and
WHEREAS, AB 1X 26 provides for an administrative cost allowance, subject to the
approval of the Oversight Board, however, based on recent discussions with the County of San
Diego Auditor and Controller, estimated administrative cost allowances for the current fiscal
year are not yet available; and
WHEREAS, based on City staff preliminary estimates it is anticipated that the Successor
Agency could receive funding in a range of $0 to $225,000 to offset staff time costs for the 4.0
Redevelopment Agency staff being transferred to the Successor Agency from February 1, 2012
to June 30, 2012; and
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Resolution No.
Page 2
WHEREAS, Based on the final determination of the County on administrative cost
allowances this appropriation could result in a General Fund impact of $0 to $225,000 in the
current fiscal year; and
WHEREAS, the budget for the Successor Agency fund for fiscal year 2012-13 will be
included as part of the City Manager's Proposed Budget for Fiscal Year 2012-13 that will be
considered by Council later this year; and
WHEREAS, the City of Chula Vista will prepare financial statements for the
Redevelopment Agency as of January 31, 2012 that will be audited by the City's independent
auditors and may require additional appropriations yet to be determined.
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the
Redevelopment Agency that it does hereby authorize the transfer of 4.0 Redevelopment Agency
positions to the Successor Agency to the Redevelopment Agency fund and the appropriation of
$225,000 to the Personnel Services category of the Successor Agency Fund from the available
fund balance of said fund.
Presented by
Maria Kachadoorian
Director of Finance/Treasurer
Approved as to form by
Glen R. Googins
City Attorney
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