HomeMy WebLinkAboutCVRC Agenda Packet 05-22-2008BOARD OF
REGULAR MEETING OF THE
DIRECTORS
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r
CHULA VISTA REDEVELOPMENT CORPORATION (CVRC)
Thursday, May 22, 2008, 6:00 p.m.
Christopher H. Lewis, Chair
COUNCIL CHAMBERS
Paul Desrochers, Vice Chair
°:
276 FOURTH AVENUE
CHULA VISTA, CA 91910
Rafael Munoz
Doug Paul
CALL TO ORDER
Hector Reyes
ROLL CALL
Christopher Rooney
Directors Desrochers, Lewis, Munoz, Paul, Reyes, Rooney,
Salvador Salas Jr.
x
Salas
PLEDGE OF ALLEGIANCE, MOMENT OF SILENCE
OFFICERS
CONSENT CALENDAR
David R. Garcia, CEO
(No Items)
Maria Kachadoorian, CFO
PUBLIC COMMENTS
Ann Moore, General Counsel
2
Persons speaking during Public Comments may address the CVRC on any subject
matter within the CVRC's jurisdiction that is not listed as an item on the agenda.
Eric C. Crockett, Secreta
State law generally prohibits the CVRC from taking action on any issue not
included on the agenda, but, if appropriate, the CVRC may schedule the topic for
future discussion or refer the matter to staff. Comments are limited to three
minutes.
ACTION ITEMS
The item(s) listed in this section of the agenda will be considered individually by
the CVRC, and is /are expected to elicit discussion and deliberation. If you wish to
speak on any item, please fill out a 'Request to Speak" form (available in the lobby)
and submit it to the City Clerk prior to the meeting.
1. AGREEMENT FOR PROFESSIONAL CONSULTING
SERVICES RELATED TO THE GAYLORD
ENTERTAINMENT PROJECT AND WESTSIDE
REVITALIZATION ACTIVITIES
Staff is proposing the Redevelopment Agency enter into an
agreement with Economic and Planning Systems for
ongoing professional services on an as- needed basis for
consultation on financing strategies and fiscal and
economic consulting services related to new development
A�
within the Bayfront Master Plan area that includes the
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development proposal by Gaylord Entertainment for a hotel and convention center.
Additionally, services for Economic and Planning Systems will include analysis of
other development proposals throughout the Agency project areas.
Staff Recommendation:
That the Chula Vista Redevelopment Corporation adopt the following resolution:
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION
RECOMMENDING APPROVAL OF A CONTRACTUAL RELATIONSHIP WITH
ECONOMIC AND PLANNING SYSTEMS, INC.
2. PROPOSED FY 2008 -09 REDEVELOPMENT AGENCY AND HOUSING
AUTHORITY OPERATING AND CAPITAL IMPROVEMENT BUDGET
On June 10, 2008, the Office of Budget & Analysis and Finance Department will be
presenting a comprehensive budget package to the City Council and Redevelopment
Agency for Fiscal Year 2008 -09. This report provides a summary of the key elements
of the budget package that affect the operations of the CVRC and Redevelopment
Agency that includes moving the remaining staffing costs for Redevelopment and
Housing from the budget of the Community Development Department, which
resides in the General Fund, to the Redevelopment Agency and Housing Authority
budget.
Staff Recommendation:
That the Chula Vista Redevelopment Corporation adopt the following resolution:
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION
MAKING RECOMMENDATION TO THE CHULA VISTA REDEVELOPMENT
AGENCY TO ADOPT THE PROPOSED OPERATING AND CAPITAL
IMPROVEMENT BUDGET FOR THE REDEVELOPMENT AGENCY AND HOUSING
AUTHORITY FOR FISCAL YEAR 2008 -09
3. CHIEF EXECUTIVE OFFICER'S REPORTS
4. CHAIRMAN'S REPORTS
5. DIRECTORS' COMMENTS
ADJOURNMENT
The Chula Vista Redevelopment Corporation will adjourn to their regularly scheduled
meeting on June 12, 2008 at 6:00 p.m.
Page 2 of 3
CVRC - Agenda - May 22, 2008
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In compliance with the
AMERICANS WITH DISABILITIES ACT
51
The Chula Vista Redevelopment Corporation requests individuals who require special accommodations to access, attend, and /or
participate in a CVRC meeting, activity, or service request such accommodation at least forty -eight hours in advance for meetings and five
days for scheduled services and activities. Please contact the Community Development Department for specific information at (619) 691-
5047, or Telecommunications Devices for the Deaf (TDD) at (619) 585 -5655. California Relay Service is also available for the hearing
impaired.
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Page 3 of 3 CVRC - Agenda - May 22, 2008
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CORPORATION
C[dLJLA VISTA
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CVRC Board
Staff Report - Page 1
Item No. 1
DATE: May 22, 2008
TO: CVRC Board of Directors
VIA: David R. Garcia, Chief Executive Officer
FROM: Eric Crockett, Assistant Director of Redevelopment and Housing
Maria Kachadoorian, Chief Financial OfficerL4K
SUBJECT: Agreement for Professional Consulting Services Related to the Gaylord
Entertainment Project and Westside Revitalization Activities
SUMMARY:
Staff is proposing the Redevelopment Agency enter into an agreement with Economic and
Planning Systems for ongoing professional services on an as- needed basis for consultation
on financing strategies and fiscal and economic consulting services related to new
development within the Bayfront Master Plan area that includes the development proposal
by Gaylord Entertainment for a hotel and convention center. Additionally, services for
Economic and Planning Systems will include analysis of other development proposals
throughout the Agency project areas.
RECOMMENDATION:
That the Chula Vista Redevelopment Corporation adopt:
Resolution of the Chula Vista Redevelopment Corporation recommending the approval of
a contractual relationship with Economic and Planning Systems, Inc.
DISCUSSION:
On July 25, 2006, the City Council and Redevelopment Agency jointly approved a Letter
of Intent ( "LOI ") between the City, Agency, San Diego Unified Port District, and Gaylord
Entertainment Company establishing a framework and foundation for negotiations on the
development of a major hotel, convention center, and retail space on the Chula Vista
Bayfront. Since then, City staff has been working closely with Economic and Planning
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Staff Report — Item No. 1
Page 2
Systems (EPS) to analyze and negotiate key deal points of the development proposal, as
outlined in the LOL
EPS has extensive experience in real estate development and has been instrumental in the
City and Agency negotiations with the Gaylord Entertainment Company. To facilitate
ongoing negotiations with Gaylord Entertainment, staff is seeking to enter into an
agreement with EPS similar to the one that expired in December 2007. Staff is currently
negotiating an agreement with EPS for a not -to- exceed amount of $105,000. There are
existing funds in the Redevelopment Agency budget and approval of the agreement would
not require an additional appropriation of funds. The proposed EPS agreement would also
allow EPS to continue to provide consultant support to the Agency to analyze the financial
feasibility of development proposals in the City's redevelopment project areas.
DECISION MAKER CONFLICTS
Staff has reviewed the property holdings of the CVRC Members and has found a conflict
exists for Directors Reyes and Salas, as they have property holdings within 500 feet of the
boundaries of the Redevelopment Project Areas which are the source of funds for this
action.
FISCAL IMPACT:
The total amount of the agreement for Economic and Planning Systems is $105,000
(Bayfront/TCI $65,000 and Merged $40,000) using existin appropriations within the
current year Agency budget.
PREPARED BY: Phillip Davis, Assistant Director of Finance
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CVRC RESOLUTION NO.
RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT CORPORATION
RECOMMENDING APPROVAL OF A
CONTRACTUAL RELATIONSHIP WITH ECONOMIC
AND PLANNING SYSTEMS, INC.
WHEREAS, the Redevelopment Agency of the City of Chula Vista ( "Agency ")
and Economic and Planning Systems, Inc. (`BPS ") entered into an Agreement dated June
28, 2005 ( "Original Agreement') where EPS agreed to provide independent economic
advice in support of future dealings regarding economic and fiscal relationships among
the City, the Agency, the San Diego Unified Port District ( "Port"), prospective lessees of
Port- controlled lands, and private owners of property within the Bayfront Master Plan
area; and
WHEREAS, the City and EPS entered into the First Amendment to the Original
Agreement dated January 10, 2006, where EPS agreed to develop a Fiscal Impact Model
to analyze the fiscal impacts of new development within the Bayfront Master Plan area;
and
WHEREAS, the Agency and the City are in negotiations with Gaylord
Entertainment Company ( "Gaylord ") for the proposed development of a hotel and
convention center in the Bayfront Redevelopment Project Area; and
WHEREAS, the Agency and EPS entered into a Second Amendment to the
Original Agreement dated March 8, 2007, where EPS agreed to analyze the financial
feasibility of the proposed Gaylord development using its Fiscal Impact Model, to
conduct a peer review on the Economic Research Associates fiscal model and pro forma,
and to analyze development proposals in the other Redevelopment project areas; and
WHEREAS, the Original Agreement, including the amendments, expired on
December 31, 2007, and
WHEREAS, to further the negotiations with Gaylord, staff recommends that EPS
again assist staff by analyzing the financial feasibility of the proposed Gaylord
development using its Fiscal Impact Model.
WHEREAS, staff is currently negotiating an agreement between the Agency and
EPS.
NOW THEREFORE, BE IT RESOLVED by the Chula Vista Redevelopment
Corporation that it recommends the approval of a contractual relationship with Economic
and Planning Systems, Inc.
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Presented by:
Maria Kachadoorian
Director of Finance
J:\Attomey\ELISA\RESOS \CVRC Rec Approval of Contractu
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f
CORPORATION
CHULA VISTA
DATE: May 22, 2008
CVRC Board
Staff Report - Page 1
Item No. 2
TO: CVRC Board of Directors
VIA: David R. Garcia, City Manager
FROM: Eric Crockett, Assistant Director of Redevelopment and HousingyLLIA
SUBJECT: Proposed FY 2008 -09 Redevelopment Agency and Housing Authority
Operating and Capital Improvement Budget
BACKGROUND:
On June 10, 2008, the Office of Budget & Analysis and Finance Department will be
presenting a comprehensive budget package to the City Council and Redevelopment
Agency for Fiscal Year 2008 -09. This report provides a summary of the key elements of
the budget package that affect the operations of the CVRC and Redevelopment Agency that
includes moving the remaining staffing costs for Redevelopment and Housing from the
budget of the Community Development Department, which resides in the General Fund,
to the Redevelopment Agency and Housing Authority budget.
This proposed change and others contained in the FY 2008 -09 budget package are the
direct result of many months of collaborative efforts by the Departments of Community
Development, Finance, and Office of Budget & Analysis. The changes allow all
redevelopment and housing activities to be placed under one budget, which can be more
effectively managed by Redevelopment and Housing staff and will be more transparent to
the public and decision makers.
The remainder of this report provides a summary description and explanation of the
proposed FY 2008 -09 Agency budget, which is included as Attachment "A" to this report.
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Staff Report — Item No. 2
Page 2
RECOMMENDATION:
Staff recommends that:
The Chula Vista Redevelopment Corporation adopt the resolution recommending that the
Chula Vista Redevelopment Agency adopt the proposed operating and capital
improvement budget for the Redevelopment Agency and Housing Authority for Fiscal Year
2008 -09.
DISCUSSION:
Redevelopment Agency Revenues
In accordance with California Redevelopment Law, a Redevelopment Agency obtains
funding for its redevelopment projects through a property tax apportionment method
called "tax increment financing." Tax increment is available for re- investment in the
project area and may be used to pay off any debt created in implementing the
Redevelopment Plan. Tax increment does not create new taxes; it simply redistributes the
growth in the annual tax base within the project area. For FY 2008 -09 the Agency
estimates it will receive $14.1 million in gross tax increment revenue.
Mill
FY 02 -03 FY 03 -04 FY 04 -05 FY 05 -06 FY 06 -u7 FY ut -uts rr uts -va
Projected Budget
All tax increment monies generated are allocated among three basic public uses: (1)
Affordable Housing, (2) Schools and Other Public Agencies, and (3) Redevelopment
Activities (debt, administration, development agreements and capital improvement
projects.)
Housing
Funds
California
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Staff Report — Item No. 2
Page 3
Redevelopment Law requires a Redevelopment Agency to set aside a minimum of 20
percent of all gross tax increment revenues generated within its Project Areas to a separate
fund which is to be used exclusively for the preservation, improvement and expansion of
the low and moderate income housing supply within the community. In FY 2008 -09, the
Agency projects the set aside amount to be approximately $2.7 million. These funds will
be used to implement and administer housing programs and projects.
During the Five Year Implementation Plan period, the Agency will concentrate on housing
activities that are most applicable to the Agency's goals and objectives. In developing its
affordable housing program, the Agency has been guided by the goals and objectives of
the City's Housing Element and Implementation Plan. The Agency will utilize Low and
Moderate Income Funds and Housing Authority resources to support and advance the
overall housing program.
Other Expenses
Other expenses, as represented in the redevelopment and housing portions of the budget,
include all pass- through payments to taxing agencies, development agreement obligations,
city staff services and property tax administration fees ($0.1 million) charged by the County
totaling approximately $5.1 million for FY 2008 -09.
Schools and Other Public Agencies or Pass Through Payments
Pass through payments are required by state law to be made to taxing entities to
ensure they are not negatively affected by a redevelopment plan. The taxing
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Staff Report — Item No. 2
Page 4
entities, which receive payments, are the Sweetwater Union High School District,
the County Office of Education, the Chula Vista Elementary School District,
Southwestern Community College and the County of San Diego, totaling an
estimated $3.5 million in pass through payments for FY 2008 -09.
Development Agreements
In addition to pass through payments, the agency has budgeted about $0.1 million
for obligations outlined in an agreement entered into in 1999 with the Goodrich
Aero Structures Group (Relocation Agreement).
City Staff Services and Overhead
The City staff services and overhead represent expenditures for other city
department staff services other than Redevelopment and Housing such as City
Attorney, City Clerk, Human Resources, Planning, Engineering, Information
Technology and building usage charges. The total estimated cost for these city staff
services in FY 2008 -09 is approximately $1.4 million.
Agency Personnel
The fiscal year 2008 -09 budget moves redevelopment and housing positions from the
General Fund to the Agency budget. Budgeting the staff positions directly in the Agency
budget allows staff to be directly charged to the funding source. Direct charges from other
departments and a citywide overhead rate continue to be applied, but are reflected as a
separate line item in the Agency budget (City Staff Service and Overhead, as described
above). Although there are no overall reductions in costs to the Agency, these changes
provide for a more transparent budget and makes it clear to the public and decision
makers how redevelopment and housing dollars are being spent. The total personnel cost
for fiscal year 2008 -09 is approximately $1.8 million.
Services and Supplies
To support the redevelopment and housing work programs, costs for services and supplies
are estimated for FY 2008 -09 at $0.8 million.
Capital Improvement Projects
The Agency is allocating approximately $233,500 for two capital improvement projects
that will include a Storefront Renovation Program ($100,000) for businesses along Third
Avenue and the replacement of parking meters also on Third Avenue ($133,500). The
funding for the parking meter replacement will be a loan from the Agency to the Parking
Meter Fund in order to facilitate the meter replacement. The replacement of the meters is
necessary in order to implement the increase in parking fees approved in December 2007.
The loan will be repaid with interest as soon as Parking Meter Fund revenues allow.
Staff Report — Item No. 2
Page 5
Debt
Usually, the flow of tax increment to the Agency is not sufficient to finance the full scope
of redevelopment activities. Therefore, agencies issue bonds to capitalize the tax
increment. The bonds work like loans that the Agency is responsible for repaying over
many years. These bonds are not a debt of the City or County and are repaid solely from
tax increment revenues. The Redevelopment Agency currently has about $42.8 million in
outstanding bonds. The total cost for debt service in FY 2008 -09 will be approximately
$4.6 million.
CONCLUSION:
The proposed annual budget has been prepared to provide the necessary funding within
allowable revenues to accomplish the approved work plan for the Redevelopment Agency
and Housing Authority. The comprehensive budget package allows all redevelopment and
housing activities to be placed under one budget, which can be more effectively managed
by Redevelopment and Housing staff and will be more transparent to the public and
decision makers.
DECISION MAKER CONFLICTS:
Staff has reviewed the property holdings of the CVRC Members and has found a conflict
exists for Director Salas, as he has property holdings within 500 feet of the boundaries of
the two Capital Improvement Projects being recommended for funding through this action.
ATTACHMENTS:
1. Proposed 2008 -09 Redevelopment Agency Budget
PREPARED BY. Phillip Davis, Assistant Director of Finance
• Attachment 1
REDEVELOPMENT AGENCY FUNDS
he Chula Vista Redevelopment Agency was created on October 24, 1972 by City
Council Ordinance. The goals of the Redevelopment Agency are to reduce blight and
to encourage new development, reconstruction, ` and rehabilitation of residential,
commercial, industrial, and retail uses. Since the Agency's creation, the City has adopted
and amended six project areas to encompass a total of approximately 3,563 acres of City
territory. Current land uses within these areas are mostly commercial and industrial, but
also include residential (primarily high and medium -high density) and public uses (e.g.,
governmental administrative centers, corporation yards, streets, etc.).
In 1979 and 2000, the City financially merged the various project areas into two primary
configurations: (1) the Merged Bayfront/Town Centre I Redevelopment Project Area (1979)
and (2) the Merged Chula Vista Redevelopment Project Area (2000). The merger of
project areas allows the Agency to pool tax increment revenues generated in different
project areas and leverage them appropriately to create benefit for the entire merged
project area. The following provides a brief historical summary of the Agency's two merged
project areas.
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MERGED BAYFRONT /TOWN CENTRE
PROJECT AREA
Following its creation in 1972, the
Agency's initial focus and resources
were dedicated to the City's
waterfront and the historic downtown
Third Avenue business corridor. On
July 16, 1974, the City adopted the
Bayfront Original Project Area, which
encompassed approximately 637
acres of territory east of the mean
high tide line.
•
Two years later, the City adopted the Town Centre I Project Area, encompassing
approximately 138 acres of territory located along and around the downtown Third Avenue
business corridor. In July 1979, the two ;project areas were consolidated into a single
Merged Bayfront/Town Centre I Redevelopment Project Area to "pool" resources and issue
bonds for financing redevelopment activities.
To help facilitate planning efforts along the waterfront, the City adopted the Bayfront
Amended Project Area in 1998, adding approximately 398 acres of territory west of the
mean high tide line to the Merged'Bayfront/Town Centre I Project Area
MERGED CHULA VISTA PROJECT AREA
As the City's population and economic
growth expanded to the south and east
during the next thirty years, the City
incorporated additional urbanized
territories to project areas to leverage
expanding development trends to
address growing housing and
infrastructure needs.
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PRCIfC7 AWAS
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The Town Centre II Original Project Area was adopted in 1978 and included the Chula
Vista Shopping Center along with a number of commercial properties along the Broadway
business corridor. In 1988, additional territory was added through adoption of the Town
Centre II Amended Project Area.
In 1983, the City adopted the Otay Valley Project Area to capture and leverage revenues
generated in the City's Auto Park Specific Plan areas. It encompasses 771 -acres and
contains light industrial, entertainment and large retail uses, including the Cricket Wireless
Amphitheater, Knott's Soak City water park, the Chula Vista Auto Park and a 25 -acre Chula
Vista Public Works Center.
In 1985, the City annexed approximately 2,500 acres known as the Montgomery Area. The
Southwest Project Area was established in 1990 to help address the area's historical
infrastructure issues as an unincorporated County community. Additional territory was
added to that area in 1991 through the adoption of the Southwest Amended Project Area.
It is the largest project area at 1,050 acres, primarily featuring small family -run industrial
and commercial uses, along with residential development.
In 2004, the City approved a new Project Area called the Added Area that includes
approximately 494 acres of property that is generally contiguous to the other existing
Project Areas and provides opportunities for increased collection of tax increment
revenues. Expansion of the Project Area also enables the Agency to more consistently
implement redevelopment projects in the majority of the commercially zoned areas in the
western part of Chula Vista, particularly Broadway and Third Avenue where (in many
areas) the Agency previously did not have redevelopment authority.
The RDA focuses on the development of sustainable neighborhoods through a variety of
investments such as:
• Crime reduction through elimination of blight,
• Improve infrastructure and public facilities,
• Provide funds for valuable public services,
• Support small business and enhance job opportunities,
• Revive business districts and downtowns
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HOUSING SET ASIDE
In addition to the plans, activities, and projects just described in the redevelopment work
programs, the facilitation and financing of affordable housing in the project areas is an
important and mandatory function of redevelopment. As tax increment revenues are
generated in redevelopment project areas, 20 percent of the gross revenue stream is
immediately set aside and placed in the Low and Moderate Income Housing Fund. Those
funds, pooled with other federal and state resources and tax credits, provide an important
financing tool to assist in the development of income - restricted, affordable housing projects.
Low and Moderate Income Housing Funds also provide important financing for:
• Housing programs, including First Time Homebuyer
• Land purchases for affordable housing
• Rehabilitation of existing multifamily housing
Annual deposits into the Low and Moderate Housing Fund for the next five years are
currently estimated to range from $2.7 million in fiscal year 2008 -09 to $2.9 million in fiscal
year 2012 -13. Low and Moderate Housing Fund monies may be spent anywhere in the
City of Chula Vista. To promote safe and sanitary affordable housing in western Chula
Vista, however, the Agency should focus and prioritize these important resources within
redevelopment project areas in neighborhoods of greatest need. The construction of new
affordable housing within project areas is also required by statute. State redevelopment
law contains an inclusionary housing requirement that provides that at least 15 percent of
all new and substantially rehabilitated dwelling units developed within a redevelopment
project area be available at affordable housing costs to, and occupied by, persons and
families of low and moderate income (Health and Safety Code §33413(b)). Of this 15
percent, at least 60 percent must be available to low and moderate income persons or
families. At least 40 percent must be available to very low income persons or families.
RDA BUDGET SUMMARY
The Agency receives tax increment revenues resulting from increases in the assessed
valuation within the redevelopment project areas over the base year assessed valuation.
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Tax increment revenues (prior to pass throughs) for fiscal year 2008 -09 are projected at
$14.1 million, an increase of $1 million over fiscal year 2007 -08 estimates.
N $16
c
° $14
$12
$10
$8
$6
$4
$2
$0
Tax Increment Revenue
FY 03-04 FY 04-05 FY 05-06 FY 06-07 FY 07 -08 FY 08-09
Estimate Projected
Note 1: Tax Increment Revenues are reflected prior to pass throughs to other agencies.
Note 2: Fiscal year 2003 -04 tax increment contained a one -time adjustment of Unitary Tax revenue of $1.3 million
related to the South Bay power plant.
The Agency budget is organized into two distinct groupings of funds. The groupings are
Redevelopment Agency Project Area Funds and Tax Agreement and Debt Service
Funds. The Project Area Funds are the primary operating funds for the Redevelopment
Agency. The Tax Agreement and Debt Service funds are used to pay for Agency debt
service on its outstanding Tax Allocation Bonds, Certificates of Participation and the
Advances and other debt of the Agency. Also included in this group are funds to make
payments for the negotiated tax agreements with the County of San Diego, County
Office of Education, Sweetwater Unified High School District, Chula Vista Elementary
School District and Southwestern Community College District.
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FUND DESCRIPTIONS
The Agency budget is organized into two distinct groupings of funds. The groupings are
the Redevelopment Agency Project Area Funds and Tax Agreement /Debt Service Funds.
Fund 611 and 651 Redevelopment Project Area Funds
The Project Area Funds are the primary operating funds for the Redevelopment Agency.
This fund accounts for revenue received from tax increment within the redevelopment
project areas and is used to fund operating expenditures, debt service, and Agency
capital projects.
Tax Agreement and Debt Service Funds
The Tax Agreement and Debt Service funds are used to pay for Agency debt service on
its outstanding Tax Allocation Bonds, Certificates of Participation and the Advances and
other debt of the Agency. Also included in this group are funds to make payments for
the negotiated tax agreements with the County of San Diego, County Office of
Education, Sweetwater Unified High School District, Chula Vista Elementary School
District and Southwestern Community College District.
Fund 689 — RDA 2000 Tax Allocation Bonds
This is the Redevelopment Agency 2000 Tax Allocation Bonds (Merged
Redevelopment Project) in the amount of $17,000,000. The Merged
Redevelopment Project was created on August 22, 2000, pursuant to an
amendment to the redevelopment plans for the three of the Agency's four
existing redevelopment projects, the Town Centre II Project Area, the Otay Valley
Project Area and the Southwest Project Area. The Bonds were issued to provide
funds for the repayment of certain obligations of the Merged Redevelopment
Project and other interfund loans, and for general redevelopment purposes. The
term of the Bonds is through the year 2030.
Fund 695 — 2006 Senior Tax Allocation Refundinq Bonds, Series A
In July 2006, the Redevelopment Agency issued the 2006 Senior Tax Allocation
Bonds, Series A in the amount of $13,435,000 to refinance the Agency's
outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax
• •
Allocation Refunding Bonds Series A (the "1994 A Bonds). The original bonds
were issued to finance improvements in the Bayfront/Town Centre Project Areas.
The Annual Debt Service is paid from property tax increment generated in the
project areas. The term of the bonds runs through 2027.
Fund 696 — 2006 Subordinate Tax Allocation Refunding Bonds, Series B
In July 2006, the Redevelopment Agency issued the 2006 Subordinate Tax
Allocation Bonds, Series B in the amount of $12,325,000 to refinance the
Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior
Tax Allocation Refunding Bonds Series D (the "1994 D Bonds) and the 1994
Subordinate Tax Allocation Refunding Bonds, Series C (the 1994 C Bonds) The
original bonds were issued to finance improvements in the Bayfront/Town Centre
Project Areas. The Annual Debt Service is paid from property tax increment
generated in the project areas. The term of the bonds runs through 2021.
Fund 693 — 2005 Taxable Revenue Bonds Series A — CRA/ERAF Loan Program
In April 2005, the Agency entered into a Loan Agreement with the California
Statewide Communities Development Authority to borrow the amount of
$765,000. This amount was used to pay the Agency's portion of the 2005
Educational Revenue Augmentation Fund (ERAF) to the County of San Diego
pursuant to Section 33681.`12 of the California Health and Safety Code.
Fund 694 — 2006 Taxable Revenue Bonds Series A — CRA/ERAF Loan Program
In April 2006, the Agency entered into a Loan Agreement with the California
Statewide Communities Development Authority to borrow the amount of
$930,000. This amount was used to pay the Agency's portion of the 2006
Educational Revenue Augmentation Fund (ERAF) to the County of San Diego
pursuant to Section 33681.12 of the California Health and Safety Code.
• •
MISSION STATEMENT
The mission of the Redevelopment Agency is to orchestrate the revitalization of declining
neighborhoods, to attract new businesses to the area, and provide residents with open space,
walkable neighborhoods, and affordable housing.
Note 1: Prior to fiscal year 2007 -08, Redevelopment and Housing staff were included as part of the Community Development
Department budget.
Note. Department org charts pending
ORGANIZATIONAL
Personnel Services
$244
$61
$792,609 _
$989,894
Supplies and Services i
$577,611 ?
$521,206
$507,987
$519,103
Other Expenses }
$17,689,356
$37,099;846
$11,082,488
$9,708,852
Utilities
$5,495
$3,335
$1,413
$1,300
Transfers Out
$2,498,539
$17,190,015 '
$2,831,142
$5,458,884
CIP Project Expenditures
$904,519
$172,420
$2,000,000
$233,500
Expenditure Totals
$21,675,764
$54,986,883
$17,215,639 1
$16,911,533
Revenue Totals
, ,
$,,..1.5.. ,506,533
F _
�.
....
Authorized Full Time Positions
000
1.00
6.00
10.00
Authorized Hourly Positions
0.00
0.00
0.00
0.00
Note 1: Prior to fiscal year 2007 -08, Redevelopment and Housing staff were included as part of the Community Development
Department budget.
Note. Department org charts pending
ORGANIZATIONAL
0
REVITALIZE WESTERN CHULA VISTA
0 By fiscal year 2008 -09, enter into five development agreements for the construction of
new housing and retail space on property located along the Third Avenue corridor and
the E Street Trolley Station adding 100 new units and 100,000 square footage of
additional commercial and industrial space.
Status: Over the past three years, the Agency has entered into a number of
Exclusive Negotiating Agreements (ENAs) with qualified developers. The timelines
for the ENAs were aligned with the proposed dates of adoption of the General Plan
Update and the Urban Core Specific Plan. The Urban Core Specific Plan
unfortunately took much longer than originally anticipated. The delay coupled with a
nationwide recession has proven problematic for many of the developers working
with the Agency. As a result, of the thirteen ENAs executed, only the ENA with
Wakeland Housing & Development Corporation was completed with the Los Vecinos
project now under construction, and two ENAs remain active, Voyage LLC and
Galaxy Commercial Holding Corporation.
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1 i ' _ r• k ATIMI
The purpose of the Redevelopment line of business is to provide leadership and support to the
City's Redevelopment Agency in revitalizing adopted redevelopment project areas, with a special
focus on reversing deteriorating economic and physical conditions; redeveloping blighted,
underutilized, and vacant properties; improving infrastructure and public facilities; and producing
revenues through the development of job generating properties.
MAJOR ACCOMPLISHMENTS
■ Completed Gateway Phase II — creating more than 100,000 square feet of new commercial
office space.
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CORE SERVICES
Acquire real property
Attract new jobs & business
Build or improve roads, utilities, &
public
Create affordable housing
facilities
Eliminate blight
New legislation /policy review
Preserve open spaces
Rehabilitate homes & businesses
Revitalize waterfronts
Specific plans
Stimulate private reinvestment
Transform hazardous waste sites
(brownfields) into productive uses
RESOURCE SUMMARY
Personnel Services 1
$244
$61 $792,609 1 $989,894
Supplies and Services
$569,045
$518,606 $493,987 $504,103
Other Expenses
$14,480,901
$7,580,426 $6,391,378 $4,696,906
Utilities
$5,495
$3,335 1 $1,413 :, $1,300
Transfers Out =
$1,361,141 (
$3,565,713 $1,946,767 $5,158,884
CIP Project Expenditures
$904,519
$172,420 $2,000,000 $233,500
Expenditure Totals s
$17,321,345 €
$11,840,561 $11,626,154 € $11,584,587
Revenue Totals ?
$8,929,562
$8,197,710 $11,219,723 $11,584,587
Authorized Full Time Positions
0.00
1.00 6.00 10.00
Authorized Hourly Positions
0.00
0.00 0.00 0.00
MAJOR ACCOMPLISHMENTS
■ Completed Gateway Phase II — creating more than 100,000 square feet of new commercial
office space.
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• Completion of Parking Management Study.
• Submitted application for EPA Brownfield Assessment Grant.
• Awarded EPA Brownfield Assessment Grant ($400,000).
• Extended the Letter of Intent with Gaylord Enterprises for a resort conference center on the
Bayfront.
• Initiated Southwest Community Strengthening Strategies effort.
• Significant progress on completion of Parking Implementation Plan.
• Completed the transfer of the Rados property to BF Goodrich for expansion of their facility.
• Completed Gateway Phase 11 — creating more than 100,000 square feet of new commercial
office space.
KEY PERFORMANCE MEASURES
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The purpose of the Debt Service Fund line of business is to account for debt related to the
Redevelopment Agency used to finance a wide variety of projects; property tax increment
revenues fund the tax allocation bonds.
MAJOR ACCOMPLISHMENTS
f S
■ Refunded 1994 Senior Tax Allocation Refunding Bonds, Series A, C, and D saving the
Agency approximately $550,000 annually or approximately $4.8 million over the remaining 20
years of the bonds.
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HOUSING AUTHORITY FUNDS
he Housing Authority was formed in 1993. A Housing Authority can provide tax -
exempt bond financing, own and operate housing, and operate various housing
programs. The Chula Vista Housing Authority does not own or operate housing, and the
Section 8 rental assistance programs including Public Housing are operated in Chula
Vista by the County of San Diego Housing Authority.; The staff of the Housing Authority
provides comprehensive housing services for the City.
The Housing Funds are comprised of the Chula Vista Housing Authority, Community
Development Block Grant (CDBG,) Housing Program Fund and Low and Moderate
Housing Fund. The Chula Vista Housing Authority fund is the clearinghouse for all
housing related staff activity. Personnel expenses are budgeted here, and are
reimbursed by various other funds such as the Low and Moderate Income Housing
Fund, and CDBG Fund. The City's CDBG Housing Program Fund includes costs for
loans to low- income families for housing rehabilitation. The Low and Moderate Income
Housing Fund accounts for a statutorily required 20 percent set -aside of tax increment
revenue earned by the Agency for development of affordable housing. As tax increment
revenues are generated in redevelopment project areas, 20 percent of the gross
revenue stream is immediately set aside and placed in the Low and Moderate Income
Housing Fund. Those funds, pooled with other federal and state resources and tax
credits, provide an important financing tool to assist in the development of income -
restricted, affordable housing projects.
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The Housing Funds will receive $900,000 in staff time reimbursements for administering
the City's CDBG and HOME grants and for monitoring of bond covenants for affordable
housing bonds issued by the City's Housing Authority.
The Housing Authority focuses on the development of sustainable neighborhoods
through a variety of investments such as:
• Production of affordable housing and home ownership opportunities
• Revive business districts and downtowns
• Clean -up of contaminated properties
• Neighborhood beautification such as upgrading facades and sidewalks
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FUND DESCRIPTIONS
The Housing Authority budget is a clearinghouse for several Housing Funds.
Housing Funds
The Housing Funds are comprised of the Chula Vista Housing Authority, CDBG Housing
Program Fund and Low and Moderate Housing Fund.
Fund 313 Chula Vista Housing Authority
The Chula Vista Housing Authority accounts for all housing related activities not
considered eligible for reimbursement by the Low and Moderate Income Housing
Fund 311 CDBG Housing Program Fund
The CDBG Housing Program Fund accounts for the revolving loan program
(Community Housing Improvement Program) that lends money to low- income
families for housing rehabilitation.
Fund 317 Low and Moderate Income Housina fund
The Low and Moderate Income "Housing Fund accounts for the statutorily
required 20% set -aside of tax increment revenue earned by the Agency for
development of affordable housing.
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The mission of the Housing Authority is to implement affordable housing programs pursuant to the
City's General Plan and Housing Element while also managing the CDBG and HOME programs.
ORGANIZATIONAL CHART
Note: Department org charts pending
Personnel Services
$0
$0
$653,604
$823,324
Supplies and Services
$149,445
$88,598
$248,887
$270,080
Other Expenses
$444,305
x $475,863
$1,071,529
$1,234,254
Operating Capital i'
$481,041
$100,362 ''
$221,000
$6,000
Utilities t
$1,589
$0_,
$720
$800
Transfers Out
$150,404
$2,922
$1,733
$275,842
Non -CIP Project Expenditures !
$0
$0
$5,570,000
$0
Expenditure Totals
$1,226,784
$667,745
$7,767,473
$2,610,300
Revenue Totals
$2,212,008
$2,753,062
$3,395,684
$3,900,931
Authorized Full Time Positions
0.00
0.00
5.00
7.00
Authorized Hourly Positions
0.00
0.00
0.00
0.00
ORGANIZATIONAL CHART
Note: Department org charts pending
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IMPROVING QUALITY OF LIFE
Ensure a policy framework that addresses the revitalization of western Chula Vista and
assists in the creation of housing opportunities for very low, low, and moderate - income
families.
Status: The Housing Element was approved by the City Council and State of
California in fiscal year 2006 -07. The first policy work the Department initiated was
the Mobile Home Closure Ordinance. Work on the proposed ordinance paused in the
Fall of 2007.
In 2007 -08 Housing and Redevelopment staff initiated the next phase of policy work
to address Inclusionary Housing and Density Bonus. Conclusion of this work will
occur in 2008 -09.
By 2010, create 100 new affordable units, an 8% increase over the existing supply.
Status: Two projects were approved and initiated construction in the 2007 -08
fiscal year. One project in the southwest, Los Vecinos, consists of 42 affordable units
has removed a blighted motel and will include many sustainable "green" features.
Another project in Otay Ranch, The Landings, consists of 92 3 bedroom units. Both
projects should be completed in the 2008 -09 fiscal year.
The City Council approved a condominium conversion in early fiscal year 2007 -08.
The project will consist of 41 units for moderate - income buyers.
And in 2007 -08 a contractor was selected to operate the City's Down payment
Assistance Program. The program provides proactive home loan counseling and
down payment assistance for low- income buyers. A workshop for foreclosure
prevention was held in Chula Vista in 2007 -08 attended by over 200 people.
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•
Affordable housing projects
Contract administration & monitoring
Financial reconciliation
Grant Administration
Inclusionary housing compliance
Mobilehome rent review
Reporting
•
Community outreach (bilingual)
Down payment program
Funding compliance
Home rehabilitation program
Long -range planning for Housing
New legislation /policy review
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• Funding for public services that helped over 5,500 Chula Vista residents.
• Rental Assistance provided to 13 households.
• Housing rehabilitation assistance completed for 14 households.
• Affordable housing project (92 units) approved and construction started in Otay Ranch.
• Section 108 loan of $9.5m secured through the U.S. Dept. of Housing & Urban Development,
work on Castle Park Sidewalks started.
• Approved approximately $5.5 million of Low and Moderate financial assistance to the energy -
efficient affordable housing (42 units) project (Los Vecinos) and construction started in SW
Chula Vista.
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► Wd a a N ' WWI I MLA A OW
"WTI j
W 1 -1
11116,E111
1111.21
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fit 11
Public Services number of people
N/A
N/A
550,000%
550,000%
served
CHIP Loans Processed
N/A
N/A
1 40
50
#Affordable housing units
N/A
N/A
535
800
monitored/in compliance
# of Affordable housing units built I
N/A
N/A
41
134
$ Low and Moderate Income Housing
N/A
N/A
$2,300,000
$2,700,000
Fund Revenues
Increase in supply of new affordable
N/A
N/A
42
N/A
housing units
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CVRC RESOLUTION NO. 2008-
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
CORPORATION MAKING RECOMMENDATION TO THE CHULA
VISTA REDEVELOPMENT AGENCY TO ADOPT THE PROPOSED
OPERATING AND CAPITAL IMPROVEMENT BUDGET FOR THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY FOR
FISCAL YEAR 2008 -09
WHEREAS, the Chula Vista Redevelopment Corporation (CVRC) of the City of Chula Vista
has received and considered the Chief Executive Officer's proposed Redevelopment Agency budget for
fiscal year 2008 -09; and
WHEREAS, a stated specific purpose of the CVRC is the development of recommendations
regarding the strategic priorities to be programmed by the Redevelopment Agency of the City of
Chula Vista through its annual budget; and
WHEREAS, the proposed annual budget submitted by the Chief Executive Officer has been
prepared to provide the necessary funding to accomplish the approved work plan; and
WHEREAS, housing fund expenditures for planning and administration are necessary for the
production, improvement or preservation of affordable housing.
NOW, THEREFORE, BE IT RESOLVED that the Chula Vista Redevelopment Corporation
does hereby recommend that the Chula Vista Redevelopment Agency adopt the proposed operating and
capital improvement budget for the Redevelopment Agency and Housing Authority for Fiscal Year
2008 -09.
Presented by: Approved as to form by
Eric Crockett
Secretary
Chula Vista Redevelopment Corporation