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HomeMy WebLinkAboutRDA Agenda Packet 2006/07/18 ,~,. ,'.; i . ;~~~;oyed by the City of Chula Vista in tfle Jffice of the City Clerk and that I posted IhiS~ ~ ~ . ent on the bulletin bOJ;;ard accord~jng t~~ ~ trequirements. . ...~_~~~ 11100& Signe~ .' 'N" / / '~ISTA /iJut Stephen C. Padilla, Mayor/Chair P-dtricia E. Chavez, Council/Agency Member Jim 1hornson, Interim City Manager/Executive Directol John McCann, Council/Agency Member Ann Moore, City Attorney/Agency Counsel Jerry R. Rindone, Council/Agency Member Susan Bigelow, City Clerk Steve Castaneda, Council/Agency Member JOINT MEETING OF THE CITY COUNCIL, THE REDEVELOPMENT AGENCY AND THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA July 18, 2006 6:00 P.M. (Immediately following the City Council Meeting) Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Council! Agency Members Castaneda, Chavez, McCann, Rindone, and Mayor/Chair Padilla CONSENT CALENDAR (Items 1-2) The Council/Agency/Authority will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Council/Agency Member, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. APPROVAL OF MINUTES of the June 6, 2006 Joint Meeting of the City Council, Redevelopment Agency, and the Public Financing Authority. Staff recommendation: Council! Agency/Authority approve the minutes. 2. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A REQUEST BY LUCE FORWARD HAMILTON AND SCRIPPS, LLP, FOR THE WAIVER OF POTENTIAL OR ACTUAL CONFLICT OF INTEREST WITH RESPECT TO LUCE FORWARD HAMILTON AND SCRIPPS, LLP REPRESENTATION OF ACI SUNBOW, LLC REGARDING OTA Y LANDFILL AGREEMENT LITIGATION The law firm, Luce, Forward, Hamilton, and Scripps, LLP has ongoing representation of the City in various employment-related matters. This law firm also represents the developer, ACI Sunbow, LLC. The law firm has requested a waiver of potential or actual conflict of interest with respect to their representation of ACI Sunbow, LLC. (City Attorney) Staff recommendation: CounciV Agency adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council/Agency on any subject matter within the Council/Agency's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council/Agency from taking action on any issue not included on the agenda, but, if appropriate, the Council/Agency may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. ACTION ITEMS The Items listed in this section of the agenda will be considered individually by the Council/Agency, and is 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. 3. CONSIDERATION OF THE LEVY AND COLLECTION OF ASSESSMENTS AND THE RENEWAL OF THE DOWNTOWN CHULA VISTA PROPERTY-BASED IMPROVEMENT DISTRICT (PBID) FOR A PERIOD OF TEN YEARS The Downtown Chula Vista Property-Based Business Improvement District (PBID) was formed in 2001 to pro actively implement a number of enhancement services and programs within the downtown core. Administered by the Downtown Business Association/Third Avenue Village Association, the PBID was established to promote a cleaner, safer, and more attractive business district, and was inaugurated for a five-year term beginning in 2001. In order to continue operation, the PBID must be renewed by July 2006, by a majority of returned property owner ballots weighted by the financial obligations ofthe assessment to be paid. (Acting Community Development Director) Staff recommendation: Council/Agency 1) Authorize the City Clerk to open and count the ballots; 2) Declare the results of the ballot process; and 3) if a majority of returned property owner ballots weighted by financial obligations of the assessment to be paid is met, adopt the following resolution: JOINT RESOLUTION OF THE CITY COUNCIL AND" THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS, RENEWAL OF THE DOWNTOWN CHULA VISTA PROPERTY -BASED IMPROVEMENT DISTRICT (PBID) FOR A PERIOD OF TEN YEARS, AND APPROVING THE FINAL ENGINEER'S REPORT Page 2 - RDA Agenda http://www .chula vistaca. gOY July 18, 2006 PUBLIC HEARINGS The following item have been advertised as public hearings as required by law. If you wish to speak on this item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 4. CONSIDERATION OF ADOPTION OF THE REDEVELOPMENT AGENCY FIVE- YEAR IMPLEMENTATION PLAN (2005-2009) FOR THE MERGED BA YFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (INCLUDING BA YFRONT AND TOWN CENTRE I), AND THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (INCLUDING TOWN CENTRE II, SOUTHWEST, OTA Y V ALLEY, AND THE ADDED AREA) The Five-Year Implementation Plan has been prepared in accordance with the statutory requirements of redevelopment law and is a strategic planning document for the Redevelopment Agency, which outlines key steps to successful redevelopment of west em Chula Vista for the next five years. (Acting Community Development Director) Staff recommendation: Agency conduct the public hearing and adopt the following resolutions: A. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING A FIVE-YEAR IMPLEMENTATION PLAN FOR THE MERGED BA YFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (INCLUDING BA YFRONT AND TOWN CENTRE I) FOR THE 2005-2009 PERIOD B. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING A FIVE-YEAR IMPLEMENTATION PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (INCLUDING TOWN CENTRE II, SOUTHWEST, OTA Y VALLEY, AND ADDED AREA) FOR THE 2005-2009 PERIOD 5. CONSIDERATION OF THE ADOPTION OF ORDINANCES AMENDING THE REDEVELOPMENT PLANS FOR THE MERGED BA YFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO BA YFRONT ORIGINAL AND TOWN CENTRE I), AND THE REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO TOWN CENTRE II ORIGINAL AND OT A Y V ALLEY) During Fiscal Years 2004/2005 and 2005/2006, the Redevelopment Agency was required by Senate Bill 1096 (Chapter 211, Statutes of 2004) to make payments to a spe~i~l state account - the Educational Revenue Augmentation Fund (ERAF). To compensafe redevelopment agencies for these "ERAF shifts," the State Legislature (through Senate Bill 1096) authorized agencies to extend the effectiveness of their redevelopment plans by up to two years, provided the Agency can make certain findings. The proposed ordinances contain the necessary findings. (Acting Community Development Director) Page 3 - RDA Agenda http://www .chulavistaca. gOY July 18, 2006 Staff recommendation: Council conduct the public hearing and place the following ordinances on first reading: A. ORDINANCE OF THE CITY OF CHULA VIST A AMENDING REDEVELOPMENT PLANS FOR THE MERGED BAYFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO BA YFRONT ORIGINAL AND TOWN CENTRE I), PURSUANT TO SENATE BILL 1096 (CHAPTER 211, STATUTES OF 2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTION 33333.6 (FIRST READING) B. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO TOWN CENTRE II ORIGINAL AND OTAY VALLEY), PURSUANT TO SENATE BILL 1096 (CHAPTER 211, STATUTES OF 2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTION 33333.6 (FIRST READING) OTHER BUSINESS 6. CITY MANAGERlDIRECTOR'S REPORTS 7. MA YORlCHAIR'S REPORTS 8. COUNCIL/AGENCY MEMBER'S COMMENTS ADJOURNMENT City Council: to the Regular Meeting of July 25, 2006 at 6:00 p.m. in the Council Chambers. Redevelopment Agency: to the Regular Meeting of August 1, 2006 at 4:00 p.m. in the Council Chambers. Public Financing Authority: until further notice. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommoqatjon at . . least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerk for specific information at (619) 691-5041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655. California Relay Service is also available for the hearing impaired. Page 4 - RDA Agenda http://www.chu1avistaca.gov July 18, 2006 DRAFT MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL, A REGULAR MEETING OF THE REDEVELOPMENT AGENCY AND A SPECIAL MEETING OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF CHULA VISTA June 6, 2006 4:00 P.M. An Adjourned Regular Meeting of the City Council, a Regular Meeting ofthe Redevelopment Agency, and a Special Meeting of the Public Financing Authority of the City of Chula Vista were called to order at 4:55 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Council! Agency/ Authority Members: Rindone and Mayor/Chair Padilla Castaneda, Chavez, McCann, ABSENT: Council! Agency/ Authority Members: None ALSO PRESENT: City Manager/Executive Director Rowlands, City Attorney/ Agency/Authority Counsel Moore, and City Clerk Bigelow Mayor/Chair Padilla stated that the City Attorney and Agency/Authority Counsel advised that, with Council/Agency/Authority concurrence, Action Item 2 could be heard under the Consent Calendar. ACTION: Council! Agency/ Authority Member Rindone moved to move Action Item 2 to the Consent Calendar. Council! Agency/ Authority Member McCann seconded the motion, and it carried 5-0. CONSENT CALENDAR (Item 1) 1. APPROVAL OF MINUTES of May 9 and May 23, 2006. Staff recommendation: Agency/ Authority/Council approve the minutes 2. CONSIDERATION OF APPROVAL OF A WAIVER OF CONFLICT OF INTEREST CONCERNING STRADLING, YOCCA, CARLSON AND RAUTH'S REPRESENTATION OF THE SAN DIEGO UNIFIED PORT DISTRICT The firm of Stradling, Y occa, Carlson & Rauth has represented the City and Redevelopment Agency in connection with various public law, municipal finance, and redevelopment matters since 1997, including a pending litigation matter. In the past and at the present, the firm has represented the San Diego Unified Port District in a nuntber of matters, including various municipal finance and litigation matters. The City and the Agency have asked Stradling, Y occa, Carlson and Rauth to represent them in connection with the City's and Agency's upcoming transaction with the Port District and Gaylord Entertainment relative to the Bayfront development and related financial transactions. Because of its previous and ongoing representation of the Port District, Stradling must first obtain a waiver of conflicts of interest from the City and the Agency in order to represent the City and Agency. (City Attorney) / CONSENT CALENDAR (continued) Staff recommendation: Council/Agency adopt the following resolution: COUNCIL RESOLUTION NO. 2006-168, REDEVELOPMENT AGENCY RESOLUTION NO. 2006-1939, JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING CONFLICT OF INTEREST IN CONNECTION WITH STRADLING, YOCCA, CARLSON AND RAUTH'S REPRESENTATION OF THE SAN DIEGO UNIFIED PORT DISTRICT ACTION: Council/Agency/Authority Member Rindone moved to approve the Consent Calendar. Council/ Agency/Authority Member McCann seconded the motion, and it carried 5-0. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS There were none. ACTION ITEM Item 2 was moved to the Consent Calendar. OTHER BUSINESS 3. CITY MANAGERlEXECUTIVE DIRECTOR'S REPORTS There were none. 4. MAYOR/CHAIR'S REPORTS There were none. 5. COUNCIL/AGENCY MEMBER'S COMMENTS There were none. ADJOURNMENT At 4:57 p.m., Mayor/Chair Padilla adjourned the meeting to the Regular Meeting of the Redevelopment Agency on June 20, 2006 at 6:00 p.m. in the Council Chambers, following the City Council meeting. The Public Financing Authority was adjourned until further notice. ~a.l tl..:::i: =-~~ Susan Bigelow, MMC, Cl y Clerk Page 2 - It. CouncillRDAlPFA Minutes http://www.chulavistaca.gov June 6, 2006 JOINT RESOLUTION NO. 2006- JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A REQUEST BY LUCE FORWARD HAMIL TON AND SCRIPPS, LLP FOR THE WAIVER OF POTENTIAL OR ACTUAL CONFLICT OF INTEREST WITH RESPECT TO LUCE FORWARD HAMILTON AND SCRIPPS, LLP REPRESENTATION OF ACI SUNBOW, LLC REGARDING OT A Y LANDFILL AGREEMENT LITIGATION WHEREAS, the law firm of Luce, Forward, Hamilton and Scripps, LLP, ("Luce Forward") has on-going representation of the City in various employment-related matters; and WHEREAS, Luce Forward also represents the developer, ACI Sunbow, LLC ("Sunbow"), in a declatory relief action entitled, ACI Sunbow, LLC v. County of San Diego and the City ofChula Vista filed with the San Diego Superior Court on March 23, 2006; and WHEREAS, in their representation of the City Luce Forward has undoubtedly acquired confidential information from the City and has represented to the City that they are unaware of any confidential information that they have obtained that would relate to the Sunbow matter; and WHEREAS, Luce Forward has further represented to the City that they will not share any confidential information that they have obtained from the City with Sunbow; and WHEREAS, pursuant to Rule 3-310 (C)(l )&(2) of the California State Bar Rules of Professional Conduct an attorney shall not, without the informed written consent of each client, accept or continue representation of more than one client in a matter in which the interests of the clients potentially or actually confliCt; and WHEREAS, pursuant to Rule 3-310 (E) of the California State Bar Rules of Professional Conduct an attorney shall not accept employment adverse to a client where, by reason of the representation of the client, the attorney has obtained confidential information material to the employment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby approves the request by Luce Forward for waiver of a potential or actual conflict of interest with respect to Luce Forward s' representation of Sunbow. Presented by Approved as to form by '-~ ~ Ann Moore City Attorney J :\Attomey\MichaelSh\RESO-Luce F orward- Waiver-MS Final. doc -4 I 0<' -- / PAGE 1, ITEM NO.: MEETING DATE: 3 07/1 8/06 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM TITLE: PUBLIC HEARING TO CONSIDER THE LEVY AND COLLECTION OF ASSESSMENTS AND THE RENEWAL OF THE DOWNTOWN CHULA VISTA PROPERTY-BASED IMPROVEMENT DISTRICT (PBID) FOR A PERIOD OF TEN YEARS JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS, RENEWAL OF THE DOWNTOWN CHULA VISTA PBID FOR A PERIOD OF TEN YEARS AND APPROVAL OF THE FINAL ENGINEER'S REPORT SUBMlnED BY: ACTING DIRECTOR OF COMMUNITY DEVELOPMENT REVIEWED BY: EXECUTIVE DIRECTOR ~:rr 4/5THS VOTE: YES D NO 0 BACKGROUND The Downtown Chula Vista Property-Based Bu~iness Improvement District (PBID) was formed in 2001 to proactively implement a number of enhancement services and programs within the downtown core. Administered by the Downtown Business Association {DBA)/Third Avenue Village Association (TAVA), the PBID was established to promote a cleaner, safer, and more attractive business district. The PBID was inaugurated for a five-year term beginning in 2001. In order to continue operation, the PBID must be renewed by July 2006, by a majority of returned property owner ballots weighted by the financial obligations of the assessment to be paid. A petition drive to establish support for the renewal of the Property-Based Business Improvement District (PBID) for Downtown Chula Vista was conducted during March and April of 2006 by the DBA/T.4..VA. The petition drive was successful in gaining the signdtures of over sixty percent of affected property owners within the proposed District. The City acted on March 7, 2006, to support the renewal of the PBID and to sign the petition for all City and Agency owned parcels within the District. On May 23, 2006 the City provided preliminary approval of the Final Engineer's Report and adopted the Resolution of Intent that formally began the process of renewing the PBID for a ten-year period, which was subject to a vote of all affected property owners, pursuant to Proposition 218. 3-1 ~ PAGE 2, ITEM NO.: J MEETING DATE: 07/18/06 The next step in the PBID renewal process is for the City Council to conduct a public hearing to consider approval of the resolution to authorize the levy and collection of assessments and the renewal of the PBID for a period of ten years, effective January 1, 2007. At the public hearing, the Council will authorize the City Clerk's office to open and count the ballots to determine the results of the PBID ballot procedure pursuant to Proposition 218. In order to continue operation, the PBID must be renewed by July 2006, by a majority of returned property owner ballots weighted by the financial obligations of the assessment to be paid. If the returned ballot results meet this requirement, the City Council will declare the results of the ballots, approve the Resolution to Authorize the levy and collection of assessments and the renewal of the PBID for a period of ten years, effective January 1, 2007, and approve the Final Engineer's Report (previously submitted). In five years, (i.e. 2011), the DBA/TAVA and the downtown property owners will undertake a comprehensive review of the Management District Plan (MDP) and PBID programs so that the services and activities are in keeping with the intent or vision. At that time, adjustments to the MDP and PBID programs may be considered. RECOMMENDATION Staff recommends that the City Council and Redevelopment Agency: 1. Authorize the City Clerk's office to open and count the ballots; and 2. Declare the results of the ballot process; and 3. If a majority of returned property owner ballots weighted by the financial obligations of the assessment to be paid is met, approve the resolution authorizing the levy and collection of assessments and the renewal of the PBID for a period of ten years, effective January 1, 2007, and approve the Final Engineer's Report (previously submitted). BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION - ), .- .), - The renewal of the Property-Based Business Improvement District (PBID) for Downtown Chula Vista will continue to help promote and improve the economic revitalization and physical maintenance of Chula Vista's historic core. A discussion of the benefits provided by the PBID to the District was reviewed by the Council at their meeting of March 7, 2006. 3-2 PAGE 3, ITEM NO.: MEETING DATE: ....-; - =-~ 07/18/06 On May 23, 2006, pursuant to the Property and Business Improvement District Law of 1994, City Council provided preliminary approval of the Engineer's Report and adopted the Resolution of Intent to form the District. The Engineer's Report is prepared pursuant to State Law (Section 36600 et. seq. of the California Streets and Highways Code) and provides a detailed description of the improvements and activities to be provided, an estimate of the cost of the improvements and activities, the methodology for determining assessment, and an assessment roll showing the amount proposed to be specially assessed against each parcel of real property within this assessment district. The action to adopt the Resolution of Intent is predicated on the success of the petition drive. The petition drive requires that property owners, representing fifty percent of the total assessment proposed to be levied ($407,925), support the district formation. This threshold has been reached with over $220,000 of assessed valuation supporting the formation of the District as of the date of this report. A final tally will be available later in June. Pursuant to Proposition 218, ballots were sent out on May 261 2006, along with the formal Notice of Public Hearing to all property owners in the proposed district. The ballots will be opened and counted at the July 18, 2006 public hearing. In order to continue operationl the PBID must be renewed by July 2006, by a majority of returned property owner ballots weighted by the financial obligations of the assessment to be paid. If this goal is reachedl Council will declare the results of the ballot process, approve the resolution authorizing the levy and collection of assessments and the renewal of the PBID for a period of ten yearsl effective January 1, 20071 and approve the Final Engineerls Report. Staff has reviewed the property holdings ofthe City Council/Agency Board Members and has found a conflict, in that Council member Castanada has holdings within 5001 of the property that is the subject of this action. FISCAL IMPACT Should the PBID be successfully renewed, the City will be obligated to assessment payments of approximately $80,000 per year, or $800,000 for the ten year renewal period. . This amount could be adjusted slightly upwards by a cost of living provision within the~D1stricf ' . documents, which by law cannot exceed five percent and which in the last five years has not exceeded four percent. These assessments would be paid from the General Fund. 3-3 -< PAGE 4, ITEM NO.: '-l MEETING DATE: 07/18/06 Prepared by: Lynette Jones, Sr. Community Development Specialist, Community Development Department J:\COMMDEY\STAFF.REP\2006\07 -18-06\PBID Levy.doc ~.1 3-4 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE LEVY AND COLLECTION OF ASSESSMENTS, RENEWAL OF THE DOWNTOWN CHULA VISTA PBID FOR A PERIOD OF TEN YEARS AND APPROVAL OF THE FINAL ENGINEER'S REPORT WHEREAS, the Property and Business Improvement District Law of 1994 (California Streets and Highway Code Section 36600 et ~.)(the "PBID Law") authorizes the City of Chula Vista to form one or more business improvement districts (a "BID") within Chula Vista; and WHEREAS, the City Council of the City of Chula Vista wishes to promote the economic revitalization and physical maintenance of the business districts within Chula Vista; and WHEREAS, the renewal of the PBID within Chula Vista will further the City Council's goals of creating jobs, assisting new businesses and supporting the existing business district within the City; and WHEREAS, a petition signed by property owners in the proposed PBID who will pay more than fifty percent (50%) of the assessment proposed to be levied has been submitted to supporting the formation of a PBID; and WHEREAS, the PBID will continue to be located in downtown Chula Vista and would include the Chula Vista Main Library and Police Station and the area from E Street to I Street and from Church Avenue to Landis Avenue; and WHEREAS, the services to be provided in the PBID will include economic development, marketing for business retention and attraction; district wide maintenance; Third Avenue enhanced maintenance; including graffiti removal, landscape improvements and power washing of sidewalks; sponsoring of annual special events; and WHEREAS, the estimated costs for the first year of operation of the PBID is Four Hundred Seven Thousand Nine Hundred Twenty Five Dollars ($407,925) which cost may be increased in future years a maximum of five percent (5%) annually; WHEREAS, a more detailed description of the location, services and costs of~Operation of the PBID are set forth in the draft management plan, dated January 27, 2006, on file with the City Clerk and incorporated in this Resolution by this reference; and 3-5 WHEREAS, a noticed public hearing was held by the City Council to receive public input on the PBID renewal on July 18, 2006, at 6:00 P.M. at City Council Chambers located at 276 Fourth Avenue, Chula Vista; and WHEREAS, the City Council authorized the results of the ballots submitted by property owners located within the boundaries of the PBID, to be opened and counted by the City Clerk's Office; and WHEREAS, dollars representing percentage of the returned ballots were cast in favor of the assessment district and _ dollars representing percentage were cast in opposition of the assessment district; and WHEREAS, pursuant to Proposition 218, the majority of returned property owner ballots weighted by the financial obligations of the assessments to be paid, were in favor of the district. NOW, THEREFORE, BE IT RESOLVED that the joint resolution of the City Council and Redevelopment Agency of the City of Chula Vista does hereby authorize the levy and collection of assessments, the renewal of the Downtown Chula Vista PBID for a period of ten years, effective January 1, 2007 and approval of the Final Engineer's Report. Presented by Approved as to form by Ann Hix Acting Director of Community Development A tL ) ?~~~4iA. { I!uv; An1.Moore ~ Ci.t. Attorney U ... .;. .. ;. 3-6 U. PAGE 1, ITEM NO.: I MEETING DATE: 07/18/06 REDEVELOPMENT AGENCY AGENDA STATEMENT a. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING A FIVE YEAR IMPLEMENTATION PLAN FOR THE MERGED BAYFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (INCLUDING BAYFRONT AND TOWN CENTRE I) FOR THE 2005-2009 PERIOD b. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING A FIVE YEAR IMPLEMENTATION PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (INCLUDING TOWN CENTRE II, SOUTHWEST, OTAYVALLEY, AND ADDED AREA) FOR THE 2005-200 PERIOD 5UBMlnED BY: ACTING DIRECTOR OF COMMUNITY DEVELOPMENT ITEM TITLE: REVIEWED BY: EXECUTIVE DIRECTOR 4/5TH5 VOTE: YE5D N00 BACKGROUND The City of Chula Vista is at an important juncture in its planning efforts for the revitalization and redevelopment of western Chula Vista. The Five Year Implementation Plan provides a critical visioning tool that supports and complements those efforts by programming the key steps to successful redevelopment for the next five years. It also serves as an important educational resource to decision-makers and the public about the role and goals of redevelopment, equipping City leaders with foundational information for making balanced, well-informed decisions on future redevelopment activities and projects. The current Draft Five Year Implementation Plan was prepared in accordance with the statutory requirements of redevelopment law (Health and Safety Code 933490), but is also structured as a strategic planning document for the Redevelopment Agency that: q Provides important and educational information to decision-makers and the public about the role and functional purpose of redevelopment. q Establishes coherent and consistent policy direction for redevelopment activitie.s. . ,~_~ L and projects during the next five years through the establishment of a mission statement and guiding principles for the Agency. q Reduces confusion about the functional structure of redevelopment, including the various redevelopment project areas in the City of Chula Vista. q Sets forth strategic and programmatic objectives and work plans for the next five years that seek to: 4-1 PAGE 2, ITEM NO.: MEETING DATE: 1 .~ ~ i-t" i 07/18/06 ~ Ensure the financial viability and effectiveness of the Agency ~ Facilitate key catalyst projects and public improvements that are consistent with adopted land use plans and policies ~ Eliminate blight and create important affordable housing opportunities Minor Revisions & Additions The Draft Five Year Implementation Plan was reviewed and considered by CVRC Board of Directors on May 25, 2005 as a recommending body to the Redevelopment Agency, consistent with Section 2.55.060(A) of the Chula Vista Municipal Code. Since that time, staff has made two additions to the Five Year Implementation Plan in consideration of public input received on the document at the May 25 hearing, including comments from the Environmental Health Coalition. Staff is recommending that the Redevelopment Agency adopt the current, updated draft version of the Plan, which includes the following two minor revisions and additions: q Addition of Housinq Strateqic Obiective #3 (p. 20). Includes an additional Housing Strategic Objective to explore the creation of an accounting system that proportionately increases the annual amount of tax increment deposits into the Low and Moderate Income Housing Fund during years when tax increment revenues exceed certain projection goals as a result of increased redevelopment activity. As redevelopment activities successfully attract private investment and increase tax increment revenues to the Agency, the Agency's ability and financial capacity to support affordable housing activities and the Low-Mod Fund would proportionately increase. The preparation of a policy study to analyze such a system is identified in the work program in Appendix B (Page 26) of the Plan. q Goodrich Environmental Cleanup (P. 35). Under the Redevelopment Work Program for the West Geographic Focus Area, the updated draft Plan includes an additional implementing action for the redevelopment of the former Goodrich operation site. The proposed implementing action would facilitate the environmental cleanup of groundwater contamination in the West Geographic Focus Area in 2008 and 2009. RECOMMENDATION Staff recommends that the Redevelopment Agency Board of Directors: 1. Approve the resolution adopting the Five Year Implementation Plan (2005-2009) for the Merged Bayfront/Town Centre I Redevelopment Project Area (including Bayfront and Town Centre I). 2. Approve the resolution adopting the Five Year Implementation Plan (2005-2009).J<9r the Merged Chula Vista Redevelopment Project Area (including Town Centre II, Southwest, Otay Valley, and the Added Area). 4-2 PAGE 3, ITEM NO.: MEETING DATE: , , U i ! 07/18/06 BOARDS/COMMISSIONS RECOMMENDATION On May 25, 2006, the Board of Directors of the Chula Vista Redevelopment Corporation considered and adopted a resolution making recommendation to the Redevelopment Agency for the approval and adoption ofthe Five Year Implementation Plan (2005-2009). DISCUSSION The preparation of the proposed Five Year Implementation Plan involved a 10-month staff effort to programmatically develop a strategic work program for the Redevelopment Agency that includes the following key elements: <=> Guiding Principles of Redevelopment to provide consistent policy direction for redevelopment during the next five years. <=> The consolidation of six existing five year implementation plans into a single, cohesive planning document that is readable, user-friendly, educational, and informative. <=> Geographic focus areas designated for redevelopment planning purposes, consistent with other City planning boundaries (e.g., General Plan, Urban Core Specific Plan, Bayfront Master Plan, etc.). <=> Measurable strategic objectives and work programs for each geographic focus area that identify key redevelopment and housing activities and projects for the next five years. <=> Consistency with overarching planning documents, including redevelopment plans adopted for the merged project areas, and the Community Development Department Five Year Strategic Plan (adopted on March 28, 2006). The following sections of this report provide a summary overview of these key elements of the Plan. Guiding Principles of Redevelopment The Plan is deliberately organized in a sequential order that leads from hiqh-Ievel policies and principles to project-level work programs and plans. The Plan establishes overarching "Guiding Principles of Redevelopment" that provide the high-level framework and context for the rest of the Plan. Guiding Principle # 7: Leverage Public/Private Investment and Resources Leverage City/Agency resources that attract private investment to improve infrastructure, and affordable housing through: . Strategic and accountable public investments . Land assembly . Business reinvestment and expansion . Debt issuance public amenities, _J 4-3 PAGE 4, ITEM NO.: MEETING DATE: 07/18/06 Guidinq Principle #2: Community Outreach & Education Promote and facilitate early and transparent public input and participation that emphasizes community education about the goals, tools, and process of redevelopment. Geographic Focus Areas Under these guiding principles, the Five Year Implementation Plan establishes redevelopment and housing work programs for the City's redevelopment project areas. The Plan, however, recognizes that communities do not evolve, physically or socio-economically, by project area boundaries. Instead, communities develop and evolve in more regional settings, influenced by where children go to school, where people shop and dine, where people attend church, which neighborhoods residents identify with, and the ups and downs of regional housing markets. The Plan therefore designates three geographic focus areas for purposes of developing and implementing five year work programs for the Redevelopment Agency. q North: Project areas located north of L Street, east of 1-5, south of SR-54, and west of Second Avenue. Affected project areas include Town Centre I, Town Centre II, and Added Area. q West: Project areas located west of 1-5, including Bayfront and Southwest. q South: Project areas located south of L Street, east of 1-5, and north of the City's southerly boundary, including the Auto Park Specific Plan areas east of 1- 805. Affected project areas include Southwest, Otay Valley, and Added Area. Redevelopment Strategic Objectives & Work Programs The Plan establishes Five Year Redevelopment Work Programs for each geographic focus area that are based on three consistent strategic objectives: q Plans & Policies. Redevelopment is a catalyst and tool to pursuing a vision that is cast by City leaders through land use plans and policies. The City's land use plans andp6liciel!. set the stage for public improvements and key catalyst projects created through redevelopment. q Public Infrastructure & Amenities. By upgrading infrastructure to create capacity that supports additional future development, the Agency can greatly advance the revitalization goals of the City while creating an environment that attracts capital and is more readily responsive to market opportunities. 4-4 PAGE 5, ITEM NO.: MEETING DATE: 07/18/06 q Key Catalyst Projects. By strategically focusing and leveraging resources on a key IIcatalyst projects/, redevelopment can create enough market confidence to attract private investment to a city's revitalization vision and plans. Housing Strategic Objectives & Work Programs The Plan additionally establishes a Five Year Housing Work Program, including three important strategic objectives for enhancing the Agency's ability to effectively facilitate the creation of affordable housing: q Expansion of Redevelopment Proiect Areas. Expansion of the project areas would further the Agency's legislative charge to remove blight, and strengthen the Agency's ability to leverage Low-Mod Funds for affordable housing, including new construction and land purchases. q Build Affordable Housing within Redevelopment Proiect Areas. To promote safe and sanitary affordable housing in western Chula Vista, and meet the Redevelopment Agency's statutory 15% inclusionary housing requirements, the Agency should focus and prioritize Low-Mod Housing Fund monies and its affordable housing efforts within redevelopment project areas in neighborhoods of greatest need. q Proportionate Increase of 20% Set-Aside. To further augment the Agency's affordable housing Low-Mod Funds, the Agency may want to explore creating an accounting system that proportionately increases the annual amount of tax increment deposits into the Low- Mod Fund during years when tax increment revenues exceed certain projection goals as a result of increased redevelopment activity. As redevelopment activities successfully attract private investment and increase tax increment revenues to the Agency, the Agency's ability and financial capacity to support affordable housing activities and the Low-Mod Fund would proportionately increase. CONCLUSION The Five Year Implementation Plan provides an important educational and strategic planning tool for the CVRC and Redevelopment Agency during this critical juncture in the City's planning efforts for the revitalization and redevelopment of western Chula Vista. It identifies critical activities and projects during the next five years that will facilitate the successful redevelopment of the City, including the attraction of private investment to western Chula Vista, the financing and construction of important public infrastructure projects and amenities, the economic development of the local business community, and long-term fiscal health of the Redevelopment Agency and City to provide needed services and public improvements to the community. :..J. FISCAL IMPACT Based on the proposed work programs in the Five Year Implementation Plan, estimated expenditures on redevelopment activities and projects during the first three years of the Plan will be limited as redevelopment efforts are focused on the preparation and adoption of key land use plans and policies and the development of infrastructure financing programs. Upon construction 4-5 PAGE 6, ITEM NO.: MEETING DATE: 1 ~ f ~ 07/18/06 of key catalyst projects, however, tax increment revenues will significantly increase and provide needed funding to finance new public infrastructure and amenities and affordable housing opportunities. Baseline projections of annual net tax increment revenues, based on current assessed values and estimated annual growth, are listed in the following table. These are net tax increment projections and exclude 20 percent set-aside monies that are deposited into the Low and Moderate Income Housing Fund. Annual Net Tax Increment Projections FY 04/05 I FY 05/06 I FY 06/07 I FY 07/08 I FY 08/09 I TOTAL I I Merged Bayfront / $432,217 $246,476 $812,581 $764,768 $841,005 $3,097,047 Town Centre I Merged Chula Vista $1,471,201 $1,830,908 $2,182,069 $2,246,291 $2,313,033 $10,043,502 TOTAL $1 ,903,41 8 $2,077,384 $2,994,650 $3,011,059 $3,154,038 $13,140,549 These baseline revenues are proposed to be expended annually on the following core activities: q Debt service payments on outstanding bonds q Pass-through of tax increment to schools and other taxing entities q General administration, including public improvements and other redevelopment activities ATTACHMENTS A - Draft Five Year Implementation Plan (2005-2009) Prepared by: Ken Lee, Principal Community Development Specialist, Community Development Department J:\COMMDEY\STAFF.REP\2006\07 -18-06\Five Year Imp Plan\071806 RDA Agenda Statement - Five Year Imp Plan.doc .: j 4-6 RDA RESOLUTION NO. 2006- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING A FIVE YEAR IMPLEMENTATION PLAN FOR THE MERGED BA YFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (INCLUDING BA YFRONT AND TOWN CENTRE I) FOR THE 2005-2009 PERIOD \VHEREAS, Section 33490 of the California Community Redevelopment Law (Health and Safety Code SS33000 et seq.) requires that redevelopment agencies prepare and adopt, after a public hearing, an implementation plan for adopted redevelopment project areas every five years; and WHEREAS, Section 33490 of the Health and Safety Code provides that the implementation plan shall contain the specific goals and objectives of the agency for the adopted project areas, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the Agency's housing requirements contained in Health and Safety Code Section 33333.10, if applicable, and Sections 33334.2,33334.4,33334.6, and 33413; and WHEREAS, the Agency previously adopted initial Five Year Implementation Plans for the Town Centre I and Bayfront Redevelopment Project Areas on December 13, 1994, and subsequent Five Year Implementation Plans for those project areas on November 10,1999; and \VHEREAS, notice of a public hearing to consider adoption of the Five Year Implementation Plan was published, mailed, and posted pursuant to Section 33490(d) of the Health and Safety Code and Section 6063 of the Government Code; and WHEREAS, in accordance with Section 33490(a)(1)(A) ofthe Health and Safety Code, the Board of Directors of the Chula Vista Redevelopment Agency held a public hearing on July 18,2006 to hear public testimony and consider adoption of the Five Year Implementation; and WHEREAS, in accordance with Section 33490(a)(1)(B) of the Health and Safety Code, the adoption of an implementation plan does not constitute an approval of any specific program, project, or expenditure, and does not constitute a project within the meaning of the California Environmental Quality Act (Public Resources Code SS21000 et seq.), and is therefore statutorily exempt from the CEQA pursuant to Section 15061(b)(1) of the State CEQA Guidelines. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency ofthe:clty of Chula Vista does hereby adopt the Five Year Implementation Plan for the Merged BayfrontlTown Centre I Redevelopment Project Area (including Bayfront and Town Centre I) for the 2005-2009 period, in accordance with Section 33490 ofthe California Health and Safety Code. 4-7 Presented by: Ann Hix Assistant Director of Community Development Approved as to form by '7 //, .\ ~ ?;I I, ,:t;}:i!;efl/~~ General Counsel /JuL/ J:\COMMDEV\STAFF.REP\2006\07-18-06\Five Year Imp Plan\071806 RDA Resolution BF-TCI - Five Year Imp Plan. doc 4-8 l RDA RESOLUTION NO. 2006- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING A FIVE YEAR IMPLEMENTATION PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (INCLUDING TOWN CENTRE II, SOUTHWEST, OTA Y V ALLEY, AND ADDED AREA) FOR THE 2005-2009 PERIOD WHEREAS, Section 33490 of the California Community Redevelopment Law (Health and Safety Code 9933000 et seq.) requires that redevelopment agencies prepare and adopt, after a public hearing, an implementation plan for adopted redevelopment project areas every five years; and WHEREAS, Section 33490 of the Health and Safety Code provides that the implementation plan shall contain the specific goals and objectives of the agency for the adopted project areas, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the Agency's housing requirements contained in Health and Safety Code Section 33333.10, if applicable, and Sections 33334.2,33334.4,33334.6, and 33413; and WHEREAS, the Agency previously adopted initial Five Year Implementation Plans for the Town Centre II, Southwest, and Otay Valley Redevelopment Project Areas on December 13, 1994, and subsequent Five Year Implementation Plans for those project areas on November 10, 1999; and WHEREAS, in accordance with Section 333 52( c) of the Health and Safety Code, the Agency previously adopted an initial Five Year Implementation Plan for the Added Area Redevelopment Project Area on May 4, 2004 in conjunction with the adoption of the Amended and Restated Redevelopment Plan for the Merged Chula Vista Redevelopment Project Area; and WHEREAS, notice of a public hearing to consider adoption of the Five Year Implementation Plan was published, mailed, and posted pursuant to Section 33490( d) of the Health and Safety Code and Section 6063 of the Government Code; and WHEREAS, in accordance with Section 33490(a)(1)(A) of the Health and Safety Code, the Board of Directors of the Chula Vista Redevelopment Agency held a public hearing on July 18,2006 to hear public testimony and consider adoption of the Five Year Implementation; and WHEREAS, in accordance with Section 33490(a)(1)(B) of the Health and Safety Co1e, thr ' adoption of an implementation plan does not constitute an approval of any specific program,-project, or expenditure, and does not constitute a project within the meaning of the California Environmental Quality Act (Public Resources Code 9921000 et seq.), and is therefore statutorily exempt from the CEQA pursuant to Section 15061(b)(1) of the State CEQA Guidelines. 4-9 RDA Resolution No. 2006- Page 2 NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista does hereby adopt the proposed Five Year Implementation Plan for the Merged Chula Vista Redevelopment Project Area (including Town Centre II, Southwest, Otay Valley, and Added Area) for the 2005-2009 period, in accordance with Section 33490 of the California Health and Safety Code. Presented by: Approved as to form by Ann Hix Assistant Director of Community Development /? ) ~U Ii/dOPA /Wt oore / ../ General Counsel ~)r;' - 4-10 ~ :? PAGE 1, ITEM NO.: MEETING DATE: 07/18/06 CITY COUNCIL AGENDA STATEMENT a. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING REDEVELOPMENT PLANS FOR THE MERGED BAYFRONT/ TOWN CENTRE I REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO BAYFRONT ORIGINAL AND TOWN CENTRE I) PURSUANT TO SENATE BILL 1096 (CHAPTER 211, STATUTES OF 2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTION 33333.6 b. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (ONLY PERTAINING TO TOWN CENTRE II ORIGINAL AND OTAY VALLEY) PURSUANT TO SENATE BILL 1096 (CHAPTER 211, STATUTES OF 2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTlqN 33333.6 SUBMITTED BY: ACTING COMMUNITY DEVELOPMENT DIRECTOR ITEM TITLE: REVIEWED BY: CITY MANAGER 4/5THS VOTE: YES D NO 0 BACKGROUND In 2004, the State Legislature passed Senate Bill 1096 (Chapter 211, Statutes of 2004) which, among other things, required redevelopment agencies to make payments to a special state account, the Educational Revenue Augmentation Fund ("ERAF"), for two consecutive fiscal years. "ERAF shifts" use local tax revenues to backfill the state's funding obligations to schools in deficit years and are not new to local governments during times of state budgetary woes. SB 1096 scheduled ERAF payments by redevelopment agencies in FY 2004-05 and 2005-06. In exchange, however, SB 1096 provided redevelopment agencies its own form of backfill by authorizing agencies to extend, for each year of ERAF payment, the statutory time limit of: (1) the effectiveness of redevelopment plans for qualifying project areas (40 years), including the authority of agencies to act on those plans; and (2) the authority of agencies to collect tax increment revenues in qualifying project areas to pay for bonded indebtedness (50 years). In other words, redevelopment agencies gave up two years of revenue today in exchange rof two~~ years of revenue tomorrow. To implement ERAF extensions, cities must adopt an ordinance amending the redevelopment plans for qualifying project areas in accordance with Section 33333.6(e)(2)(O) of the California Health and Safety Code. 5-1 PAGE 2, ITEM NO.: MEETING DATE: r .::.:;, 07/18/06 The Chula Vista Redevelopment Agency has made both of its required ERAF payments for FY 2004-05 and 2005-06, and is authorized pursuant to SB 1096 to extend the time limits of redevelopment plans for the following qualifying project areas: ~ Bayfront Original (adopted 1974) ~ Town Centre I (adopted 1976) ~ Town Centre II Original (adopted 1978) ~ Otay Valley (adopted 1983) Although SB 1096 involves Redevelopment Agency funds, the redevelopment plans were originally adopted by City Council ordinance. Amendments to these plans pursuant to SB 1096 require adoption of an ordinance by the same legislative body. Staff is therefore recommending that the City Council adopt the proposed ordinance amending the redevelopment plans for the four project areas listed above to extend the statutory time limits of those plans for two years. RECOMMENDATION 1. Place the ordinance of the City of Chula Vista amending redevelopment plans for the Merged Bayfront/T own Centre I Redevelopment Project Area, pertaining only to the Bayfront Original and Town Centre I Project Areas, to extend the duration of the plans for those project areas by two years in accordance with Senate Bill 1096 (Chapter 211, Statutes of 2004) as codified in Health and Safety Code Section 33333.6 on First Reading. 2. Place the ordinance of The City of Chula Vista amending the redevelopment plan for the Merged Chula Vista Redevelopment Project Area, pertaining only to the Town Centre II Original and Otay Valley Project Areas, to extend the duration of the plan for those project areas by two years in accordance with Senate Bill 1096 (Chapter 211, Statutes of 2004) as codified in Health and Safety Code Section 33333.6 on First Reading. BOARDS/COMMISSIONS RECOMMENDATIONS On May 25, 2006, the Board of Directors of the Chula Vista Redevelopment Corporation considered and adopted resolutions making recommendation to the City Council for the adoption of the proposed ordinances and redevelopment plan amendments. DISCUSSION Previous 2003 ERAF Shift & Backfill _ .;1 . The SB 1096 backfill is not new. It is identical to a previous 2003 State backfill that allowed a- one-year extension of redevelopment plan time limits to help redevelopment agencies absorb a $135 million statewide ERAF shift. SB 1045 (Chapter 260, Statutes of 2003) was the legislative vehicle for that backfill and was enacted as a trailer bill to the State Legislature's 2003 Budget. In accordance with SB 1045, the City Council approved ordinances on January 27, 2004 extending redevelopment plan time limits for ERAF payments made in Fiscal Year 2003-04. 5-2 PAGE 3, ITEM NO.: MEETING DATE: ,.-- / :;, 07/1 8/06 SB 7096 - Two-Year ERAF Shifts & Backfill SB 1096 backfills ERAF payments made by redevelopment agencies in Fiscal Years 2004-05 and 2005-06. The statute, as codified in the California Community Redevelopment Law (Health and Safety Code g33333.6(e)(2)(O)), permits redevelopment agencies to extend the duration of qualifying redevelopment plans by up to two years if the agencies make a finding that the ERAF payments impair their ability to fund future redevelopment activities and projects in accordance with those plans. To be eligible, the effectiveness of a redevelopment plan for a project area must be less than 20 years from the end of the fiscal year in which a payment is made. Qualifying project areas include: Bayfront Original, Town Centre I, Town Centre II Original, and Otay Valley. ERAF payments by the Chula Vista Redevelopment Agency totaled $1,643,725 in FY 2004-05 ($743,358) and FY 2005-06 ($900,367). Given the Agency's current tax increment growth rates, and current efforts to strengthen the organization's financial strategies, staff has determined that the loss of revenues from ERAF payments has substantially impacted the Agency's ability to fund proactive redevelopment activities and projects to implement the adopted redevelopment plans. Extending the duration of the redevelopment plans will enable the Agency to capture additional tax increment that will help, at least in part, make up for the revenues lost to ERAF. The proposed plan amendments would extend the duration of the Redevelopment Plans of the Merged Chula Vista Redevelopment Project Area (only pertaining to Town Centre II Original and Otay Valley) and the Merged BayfrontlTown Centre I Redevelopment Project Area (only pertaining to Bayfront Original and Town Centre I) by two years pursuant to Section 33333.6(e)(2)(O) of the California Community Redevelopment Law (Health and Safety Code gg33000 et seq.). The proposed ordinances contain the necessary findings required by state law. FISCAL IMPACT ERAF payments by the Chula Vista Redevelopment Agency totaled $1,643,725 in FY 2004-05) and FY 2005-06. Adoption of the proposed ordinance would extend the duration of the Redevelopment Plans and the receipt of tax increment revenues from the Merged Chula Vista Redevelopment Project Area (only pertaining to Town Centre II Original and Otay Valley) and the Merged BayfrontlTown Centre I Redevelopment Project Area (only pertaining to Bayfront Original and Town Centre I) for an additional two years to mitigate the impact of the ERAF tran.sMrs in~ Fiscal Years 2004-05 and 2005-06. The Redevelopment Plan Amendments do not pose additional modifications or restrictions on the Agency. Prepared by: Ken Lee, Principal Community Development Specialist, Community Development Department J:\COMMDEY\STAFF.REP\2006\07-18-06\ERAF\071806 ERAF Agenda Statement. doc 5-3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING REDEVELOPMENT PLANS FOR THE MERGED BA YFRONT/TOWN CENTRE I REDEVELOPMENT PROJECT AREA (ONL Y PERTAINING TO BA YFRONT ORIGINAL AND TOWN CENTRE I) PURSUANT TO SENATE BILL 1096 (CHAPTER 211 , STATUTES OF 2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTION 33333.6 WHEREAS, the City Council adopted and subsequently amended the Redevelopment Plan for the Bayfront Original Project Area on July 17, 1979 by Ordinance No. 1872, April 22, 1986 by Ordinance No. 2146, January 4, 1994 by Ordinance No. 2585, November 8, 1994 by Ordinance No. 2608, July 7,1998 by Ordinance No. 2734, January 13,2004 by Ordinance No. 2948, and February 3,2004 by Ordinance No. 2950; and WHEREAS, the City Council adopted and subsequently amended the Redevelopment Plan for the Town Centre I Project Area on July 17, 1979 by Ordinance No. 1872, April 22, 1986 by Ordinance No. 2146, January 4,1994 by Ordinance No. 2585, November 8,1994 by Ordinance No. 2609, July 7, 1998 by Ordinance No. 2735, January 13, 2004 by Ordinance No. 2948, and February 3,2004 by Ordinance No. 2950; and WHEREAS, Section 33333.6.(e)(2)(D) of the California Community Redevelopment Law, Health and Safety Code Sections 33000 et seq. ("Law"), provides that when an agency is required to make payments to the Educational Revenue Augmentation Fund during Fiscal Years 2004-05 and 2005-06 pursuant to Section 33681.12 of the Law, the legislative body may extend the effectiveness of the redevelopment plan by up to two years, provided the agency can make certain findings; and WHEREAS, the Chula Vista Redevelopment Agency ("Agency") desires to amend the Redevelopment Plans pursuant to the authority granted in Section 33333.6(e)(2)(D) of the Law to allow the Agency to extend the time to collect tax increment because of the loss of funds resulting from the requirement to make payments to the Educational Revenue Augmentation Fund that would have otherwise been used to pay for the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plans; and WHEREAS, the Agency determined that the loss of revenue due to the payments of the Educational Revenue Augmentation Fund will impair their ability to fund future projects; and WHEREAS, the time limit for the effectiveness of the Redevelopment Plan for the B'l.lfror;t . . Original Project Area is July 16,2015, which is more than 10 years but less than 20 years from the . last day in Fiscal Year 2004-05, and less than 10 years from the last day in and Fiscal Year and 2005- 06, in which the payment required by Section 33681.12 of the Law must be made; and WHEREAS, the time limit for the effectiveness of the Redevelopment Plan for the Town Centre I Project Area is July 6, 2017, which is more than 10 years but less than 20 years from the last 5-4 RDA Resolution No. 2006- Page 2 day in Fiscal Years 2004-05 and 2005-06 in which the payment required by Section 33681.12 ofthe Law must be made; and WHEREAS, the Agency is in compliance with the requirements of Section 33334.6, of the Law which generally requires that not less than 20 percent of the taxes allocated to the Agency beginning in Fiscal Year 1985-86 be used to increase, improve and preserve the community's supply of affordable housing; and WHEREAS, the Agency has adopted an implementation plan in accordance with the requirements of Section 33490 of the Law on July 18, 2006 ("Implementation Plan"); and WHEREAS, as demonstrated in the Implementation Plan, the Agency is in compliance with Section 33413 of the Law; and WHEREAS, the Agency is not subject to sanctions pursuant to subdivision (e) of Section 33334.12 of the Law for the failure to expend, encumber, or disburse an excess surplus; and WHEREAS, pursuant to Section 33333.6 (e)(3)(A) of the Law, a public hearing has been conducted and duly noticed. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS FOLLOWS: 1. The time limit on the effectiveness of the Redevelopment Plan for Bayfront Original Project Area, as set forth in Section 1104 of the Redevelopment Plan, is hereby extended by two (2) years to July 16,2017. 2. The time limit on the effectiveness of the Redevelopment Plan for Town Centre I Project Area, as set forth in Section 1104 of the Redevelopment Plan, is hereby extended by two (2) years to July 6, 2019. 3. Except as amended hereby, the Redevelopment Plans shall remain in full force and effect according to its terms. 4. All required proceedings and considerations precedent to the adoption of this Ordinance have been regularly taken in accordance with applicable law. 5. The City Manager shall notify the appropriate public entities of the adoption: dif thi~ Ordinance. 6. Should any provision, portion, part or section of this Ordinance be held invalid by any court of competent jurisdiction, the invalid provision, portion, part, or section shall be stricken and the remainder shall be severable from such invalid provision, portion, part or section and such remainder shall remain in full force and effect. 5-6 RDA Resolution No. 2006- Page 3 7. This Ordinance shall be in full force and in effect thirty (30) days after passage. 8. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published or posted as required by law within fifteen (15) days after its passage. Presented by: Approved as to form by Ann Hix Assistant Director of Community Development ~~lftJ~ iLP A Moore () City Attorney - .I" - 5-7 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE REDEVELOPMENT PLAN FOR THE MERGED CHULA VISTA REDEVELOPMENT PROJECT AREA (ONL Y PERTAINING TO TO\VN CENTRE II ORIGINAL AND OTA Y VALLEY) PURSUANT TO SENATE BILL 1096 (CHAPTER211, ST A TUTES OF 2004) AS CODIFIED IN HEALTH AND SAFETY CODE SECTION 33333.6 WHEREAS, the City Council of the City of Chula Vista ("City Council") adopted and subsequently amended the Redevelopment Plan for the Town Centre II Original Project Area on May 19,1987 by Ordinance No. 2207, July 19,1988 by Ordinance No. 2274, November 8,1994 by Ordinance No. 2610, August 22,2000 by Ordinance No. 2817, January 13,2004 by Ordinance No. 2947, Febmary 3, 2004 by Ordinance No. 2949, and May 4,2004 by Ordinance No. 2962; and WHEREAS, the City Council adopted and subsequently amended the Redevelopment Plan for the Otay Valley Project Area on November 8, 1994 by Ordinance No. 2611, August 22, 2000 by Ordinance No. 2818, January 13,2004 by Ordinance No. 2947, Febmary 3, 2004 by Ordinance No. 2949, and May 4, 2004 by Ordinance No. 2962; and WHEREAS, Section 33333.6(e)(2)(D) of the California Community Redevelopment Law, Health and Safety Code Sections 33000 et seq. ("Law"), provides that when an agency is required to make payments to the Educational Revenue Augmentation Fund during Fiscal Years 2004-05 and 2005-06 pursuant to Section 33681.12 ofthe Law, the legislative body may extend the effectiveness of the redevelopment plan by up to two years, provided the agency can make certain findings; and WHEREAS, the Chula Vista Redevelopment Agency ("Agency") desires to amend the Redevelopment Plan pursuant to the authority granted in Section 33333.6(e)(2)(D) of the Law to allow the Agency to extend the time to collect tax increment because of the loss of funds resulting from the requirement to make payments to the Educational Revenue Augmentation Fund that would have otherwise been used to pay for the costs of projects and activities necessary to carry out the goals and objectives of the Redevelopment Plan; and WHEREAS, the Agency determined that the loss of revenue due to the payments of the Educational Revenue Augmentation Fund will impair their ability to fund future projects; and WHEREAS, the time limit for the effectiveness of the Redevelopment Plan for the Town Centre II Original Project Area is August 15,2019, which is more than 10 years but less_t~an 22 years from the last day in Fiscal Years 2004-05 and 2005-06 in which the payment required by Section 33681.12 of the Law must be made; and WHEREAS, the time limit for the effectiveness of the Redevelopment Plan for the Otay Valley Project Area is December 29,2024, which is more than 10 years but less than 20 years from the last day in Fiscal Years 2004-05 and 2005-06 in which the payment required by Section 33681.12 5-8 Ordinance No. 2006- Page 2 WHEREAS, the Agency is in compliance with the requirements of Section 33334.6, of the Law which generally requires that not less than 20 percent of the taxes allocated to the Agency beginning in Fiscal Year 1985-86 be used to increase, improve and preserve the community's supply of affordable housing; and WHEREAS, the Agency has adopted an implementation plan in accordance with the requirements of Section 33490 of the Law on July 18, 2006 ("Implementation Plan"); and WHEREAS, as demonstrated in the Implementation Plan, the Agency is in compliance with Section 33413 of the Law; and WHEREAS, the Agency is not subject to sanctions pursuant to subdivision (e) of Section 33334.12 of the Law for the failure to expend, encumber, or disburse an excess surplus; and WHEREAS, pursuant to Section 33333.6 (e)(3)(A) of the Law, a public hearing has been conducted and duly noticed. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN AS FOLLOWS: 1. The time limit on the effectiveness of the Redevelopment Plan for the Town Centre II Original Proj ect Area, as set forth in Section 1104 of the Redevelopment Plan, is hereby extended by two (2) years to August 15,2021. 2. The time limit on the effectiveness of the Redevelopment Plan for Otay Valley Project Area, as set forth in Section 1104 of the Redevelopment Plan, is hereby extended by two (2) years to December 29,2026. 3. Except as amended hereby, the Redevelopment Plans shall remain in full force and effect according to its terms. 4. All required proceedings and considerations precedent to the adoption of this Ordinance have been regularly taken in accordance with applicable law. 5. The City Manager shall notify the appropriate public entities of the adoption of this Ordinance. 6. Should any provision, portion, part or section of this Ordinance be held invalid by anytcouq of competent jurisdiction, the invalid provision, portion, part, or section shall be stricken and the remainder shall be severable from such invalid provision, portion, part or section and such remainder shall remain in full force and effect. 7. This Ordinance shall be in full force and in effect thirty (30) days after passage. 5-9 Ordinance No. 2006- Page 3 8. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published or posted as required by law within fifteen (15) days after its passage. Presented by: Approved as to form by Ann Hix Assistant Director of Community Development ._ JJ 5-10