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HomeMy WebLinkAboutRDA Packet 1994/12/13 Tuesday, December 13, 1994 Council Chambers 6:00 p.m. Public Services Building (immedi,tely following the City Council meeting) SDecial Meeting of the RedeveloDment Agencv of the Citv of Chula Vista CALL TO ORDER 1. ROLL CALL: Members Fox -, Padilla -, Riudone -, and Chairwoman Horton- 2. APPROVAL OF MINUTES: December 6,1994 CONSENT CALENDAR The sIIlff rec01lUlU!ndations regarding the foUowing items listed under the Consent ColeruiDr will be eJUU:ted by the Ageru:y by 01U! nwtion without diseussion lIIIIess ØJI Age"", Member, a member of the publie or City sIIlff requests that the item be pulled for diseussion. If you wish to speak on 01U! of the!Jt! iJems, pleOSt! fiH out a "&quest to Speak Foma" availoble in the lobby and submiJ iJ to the Secretory of the &development Ageru:y or the City Cleric prior to the meeting. (Complete the green foma to speak in favor of the sIIlff recO1lUlU!ndation; complete the pink foma to speak in opposition to the stoff recO1lUlU!ndation.) Items pulled from the Consent ColeruiDr wUl be diseusSt!d after Action Items. Items pulled by the publie wUl be the first iJems of business. None Submitted. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit iJ to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak infavorofthe staffrecommendation; complete the pinkformto speak in opposiJionto the staffrecommendation.) Comments are limited to five minutes per individual. 3. PUBLIC HEARING REVIEW OF FIVE YEAR IMPLEMENTATION PLANS FOR TIlE FOLLOWINGREDEVELOPMENTPROJECTAREASINCOMPL~CE WITH SECTION 33490 OF TIlE COMMUNITY REDEVELOPMENT LAW (HEALTH AND SAFETY CODE SECTION 33000 et seq.): "BAYFRONTREDEVELOPMENTPROJECT;"OTAYVALLEYROAD REDEVELOPMENT PROJECT; "SOUTHWEST REDEVELOPMENT PROJECT; "TOWN CENTRE I REDEVELOPMENT PROJECT; " TOWN CENTRE II REDEVELOPMENT PROJECT; --Section 33490 of the Community Redevelopment Law requires that on or before 12/31/94, and each five years thereafter, each redevelopment agency that has adopted a redevelopment plan prior to 12/31/93, shall adopt, after a public hearing, an Implementation Plan and Housing Implementation Plan therefor that shall contain the specific goals and objectives of the agency for the project area, programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will Agenda -2- December 13, 1994 eliminate blight within the project area. Staff has prepared the Implementation Plan and Housing Implementation Plan therefor for each of the Agency's five project areas. Staff recommends approval of the resolutions. (Continued from the meeting of December 6, 1994,) (Community Development Director) A. AGENCY RESOLUTION 1438 ADOPTING TIlE FIVE YEAR IMPLEMENTATION PLAN INCLUDING TIlE HOUSING IMPLEMENTATION PLAN TIlEREFOR FOR TIlE BAYFRONT REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF TIlE COMMUNITY REDEVELOPMENT LAW B. AGENCY RESOLUTION 1439 ADOPTING TIlE FIVE YEAR IMPLEMENTATION PLAN INCLUDING TIlE HOUSING IMPLEMENTATION PLAN TIlEREFOR FOR TIlE OT A Y V ALLEY ROAD REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF TIlE COMMUNITY REDEVELOPMENT LAW C. AGENCY RESOLUTION 1440 ADOPTING TIlE FIVE YEAR IMPLEMENTATION PLAN INCLUDING TIlE HOUSING IMPLEMENTATION PLAN TIlEREFOR FOR TIlE SOUTHWEST REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW D. AGENCY RESOLUTION 1441 ADOPTING TIlE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION PLAN TIlEREFOR FOR TIlE TOWN CENTRE I REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF TIlE COMMI¡NITY REDEVELOPMENT LAW E. AGENCY RESOLUTION 1442 ADOPTING THE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION PLAN TIlEREFOR FOR TIlE TOWN CENTRE n REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF TIlE COMMUNITY REDEVELOPMENT LAW 4. AGENCY PUBLIC HEARING LEASE OF TIlE PROPERTY AT 753 BROADWAY TO BUDGET RENT A CAR AND FINDING, PURSUANT TO SECTION 33433 THAT THiS LEASE WILL ASSIST IN TIlE ELIMINATION OF BLIGHT AND THAT CONSIDERATION OFFERED IS NOT LESS THAN MARKET V ALUE-- The Agency acquired the property as part of the Auto Park project. Budget Rent A Car has approached the Agency with an offer to lease the property. Staff negotiated the terms of the proposed lease and believe the terms agreed upon constitute a market rate for the property. Staff recommends approval of the resolution. (Continued from the meeting of December 6, 1994.) (Community Development Director) AGENCY RESOLUTION 1443 AUTHORIZING TIlE CHAIRWOMAN TO EXECUTE A LEASE FOR TIlE PROPERTY LOCATED AT 753 BROADWAY WITH BUDGET RENT A CAR ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. Agenda -3- December 13, 1994 ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment Agency or the City Clerk prior to the meeting. Public comments are limiJed to five minutes. None Submitted. ITEMS PULLED FROM TIlE CONSENT CALENDAR This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency Members. Public comments are limited to five minutes per individual. OTIlER BUSINESS 5. DIRECTOR'S REPORT(S) 6. CHAIRWOMAN'S REPORT(S) 7. MEMBERS' COMMENTS ADJOURNMENT The meeting will adjourn to the Regular Redevelopment Agency Meeting on Tuesday, December 20, 1994 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. ****** COMPLIANCE WITH TIlE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City 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 Secretary to the Redevelopment Agency for specific information at (619) 691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. [BBIC:I WP51 IAGENCYIAGENDASI12-13-94.AGD) ~ þa;}£ ¡;twk! MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, December 6, 1994 Council Chambers 7:40 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council Members Fox, Padilla, Rindone, and Chairman/Mayor Horton ALSO PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/City Attorney; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MINUTES: November 22, 1994 MSC (RindonelFox) to approve the minutes of Novemher 22, 1994 as presented, Approved 3-0-0-1 with Member Fox voting out of the Rule of Necessity and Member Padilla abstaining. CONSENT CALENDAR (Items pulled: none) CONSENT CALENDAR OFFERED BY CHAIRMAN/MAYOR HORTON, reading of the text was waived, passed and approved 4-0 with Member Rindone abstaining on item 4. 3. WRITTEN COMMUNICATIONS: None 4. AGENCY RESOLUTION 1435 COUNCIL RESOLUTION 17739 AUTHORIZING THE EXECUTION OF AN AMENDED AND RESTATED AGREEMENT FOR COOPERATION BETWEEN THE CITY OF CHULA VISTA, CHULA VISTA REDEVELOPMENT AGENCY, AND THE SWEETWATER UNION HIGH SCHOOL DISTRICT FOR THE SOUTHWEST REDEVELOPMENT PROJECT AREA - Pursuant to Health & Safety Code Section 33401 the City and Agency entered into an Agreement for Cooperation with the Sweetwater Union High School District in December 1992. The purpose of the Agreement was to share a portion of the tax increment revenne generated from the project. Staff from each party seek authorization to update the agreement to facilitate more efficient disbursements to the District. Staff recommends approval of the resolutions. (Director of Community Development) Member Rindone abstained from voting on the item. 5. AGENCY RESOLUTION 1436 COUNCIL RESOLUTION 17740 WAIVING THE FORMAL COMPETITIVE BIDDING REQUIREMENTS AND APPROVING A SETTLEMENT AGREEMENT WITH AMWEST SURETY COMPANY IN A FORM TO BE APPROVED BY THE CITY ATTORNEY WHICH WILL PROVIDE FUNDING FOR THE LANDSCAPING CONTRACT WITH BROOKWOOD LANDSCAPE, INC. AND AUTHORIZING THE CHAIRMAN TO EXECUTE SAME - The Agency is requested to award a contract to complete landscaping work as part of the Auto Park grading to Brookwood Landscape, Inc., the low bidder. The previous land owner. Jimmie Shinohara, provided a Grading Bond and Landscaping Bond to the City to guarantee completion of the work. Agency Special Council and Agency staff negotiated Amwest Snrety Company to pay for the grading work. Staff recommends approval of the resolutions. (Director of Communily Development) 02 -I - -- Minntes December 6, 1994 Page 2 6. AGENCY RESOLUTION 1437 AUTHORIZING THE EXECUTION OF TWO EASEMENT AGREEMENTS REQUESTED BY THE SAN DIEGO GAS & ELECTRIC COMPANY FOR THE PURPOSE OF INSTALLING UNDERGROUND FACILITIES AND APPURTENANCES WITHIN UTILITY UNDERGROUNDING DISTRICT NUMBER 117 ALONG BROADWAY BETWEEN "I" STREET AND MOSS STREET - The two easements are at the southwest comers of two Agency-owned properties (753 and 801 Broadway). In order to underground the overhead utilities, San Diego Gas & Electric Company must place certain facilities (transformers, which are approximately 36" long, 36" wide, and 36" high) behind the sidewalk on Broadway. Staff had reviewed the easement documents and concurs with granting of the easements to SDG&E. Staff recommends approval of the resolution. (Director of Community Development) * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 7. PUBLIC HEARING REVIEW OF FIVE YEAR IMPLEMENTATION PLANS FOR THE FOLLOWING REDEVELOPMENT PROJECT AREAS IN COMPLIANCE WITH SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW (HEALTH AND SAFETY CODE SECTION 33000 et seq.): BA YFRONT REDEVELOPMENT PROJECT; TOWN CENTRE I REDEVELOPMENT PROJECT; TOWN CENTRE nREDEVELOPMENT PROJECT; OT A Y V ALLEY ROAD REDEVELOPMENT PROJECT; AND SOUTHWEST REDEVELOPMENT PROJECT - Section 33490 of the Community Redevelopment Law requires that on or before 12/31/94, and each five years thereafter, each redevelopment agency that has adopted a redevelopment plan prior to 12/31/93, shall adopt, after a public hearing, an Implementation Plan and Housing Implementation Plan therefor that shall contain the specific goals and objectives of the agency for the project area, programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the project area. Staff has prepared the Implementation Plan and Housing Implementation Plan for each of the Agency's five project areas. Staff recommends opening the public hearing and continuing the item to the special meeting of 12/13/94 immediately following the City Council Meeting. (Director of Community Development) This being the time and place as advertised, the public hearing was declared open. MSC (Horton/Rindone) to continue the public hearing to the meeting of 12/13/94 as requested by staff, Approved 4-0. 8. PUBLIC HEARING LEASE OF TIlE PROPERTY AT 753 BROADWAY TO BUDGET RENT A CAR AND FINDING, PURSUANT TO SECTION 33433 THAT TillS LEASE WILL ASSIST IN THE ELIMINATION OF BLIGHT AND THAT CONSIDERATION OFFERED IS NOT LESS THAN MARKET VALUE - The Agency acquired the property as part of the Auto Park project. Budget Rent A Car has approached the Agency with an offer to lease the property. Staff negotiated the terms of the proposed lease and believe the terms agreed upon constitute a market rate for the property. Staff recommends opening the public hearing and continuing this item to the special meeting of 12/13/94 immediately following the City Council meeting. (Director of Community Development) This being the time and place as advertised, the public hearing was declared open. . Joseph Garcia, 484 Fifth Avenue, Chula Vista, CA, requested that the figures be made available as to how much the property would be rented for and the conditions. Chairman Horton stated staff would make that information available to Mr. Garcia. MSC (Horton/Padilla) to continue the public hearing to the meeting of 12/13/94 as requested by staff. approved 4-0. c2 -þ _.. ..-. Minutes December 6, 1994 Page 3 ORAL COMMUNICATIONS None ACTION ITEMS None submitted. ITEMS PULLED FROM THE CONSENT CALENDAR Items pulled: none. The minutes will reflect the published agenda order. OTHER BUSINESS 9. DIRECTOR'S/CITY MANAGER'S REPORTrs) - None 10. CHAIRMAN'S/MA YOR'S REPORTrS) - None 11. AGENCY/COUNCIL MEMBER COMMENTS Agencv/Council Member Rindone . Member Rindone stated that a special meeting had been called on 12/28/93 which proved to be a very controversial meeting. He wanted assurance from staff that there would be no last minute meetings called past 12120/94. Chris Salomone, Director of Community Development, stated he did not see any reason for calling a special meeting past the 20th. The implementation plans were scheduled for 12/13/94 and those were the only activities that had to be done before the end of the year. Even if they were not done before the end of the year there was no penalty. ADJOURNMENT ADJOURNMENT AT 7:48 P.M. to a Special Meeting of the Redevelopment Agency on December 13, 1994 at 6:00 p.m. immediately following the City Council meeting, in the City Council Chambers. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk by: Vicki C. Soderquist, Deputy City Clerk oZ,ß 'Jhb þ~E. Clank! ~-1 REDEVELOPMENT AGENCY AGENDA STATEMENT Item j;:t/b,c',c:l, C2. Meeting Date 12/13/94 ITEM TITLE: PUBLIC HEAR[NG; Review of Five Year Implementation Plans for the Following Redevelopment Project Areas in Compliance with Section 33490 of the Community Redevelopment Law (Hea[th and Safety Code Section 33000 et seq.): " Bayfront Redevelopment Project; " Otay Valley Road Redeve[opment Project; " Southwest Redeve[opment Project" Town Centre I Redeve[opment Project; " Town Centre [I Redevelopment Project; RESOLUT[ON 1438 Adopting the Five Year Implementation Plan Including the Housing Implementation Plan Therefor for the Bayfront Redeve[opment Project Pursuant to Section 33490 of the Community Redeve[opment Law RESOLUTION 1439 Adopting the Five year Implementation Plan Including the Housing Implementation Plan Therefor for the Otay Valley Road Redeve[opment Project Pursuant to Section 33490 of the Community Redeve[opment Law RESOLUTION 1440 Adopting the Five Year Implementation Plan Including the Housing Implementation Plan Therefor for the Southwest Redevelopment Project Pursuant to Section 33490 of the Community Redeve[opment Law RESOLUTION 1441 Adopting the Five Year Implementation Plan Including the Housing Implementation Plan Therefor for the Town Centre [ Redeve[opment Project Pursuant to Section 33490 of the Community Redevelopment Law RESOLUTION 1442 Adopting the Five Year Implementation Plan Including the Housing Implementation Plan Therefor for the Town Centre I[ Redeve[opment Project Pursuant to Section 33490 of the Community Redeve[opment Law SUBMITTED BY: Community Deve[opment Director {-~ . REVIEWED BY: Executive Director/j¡~ (4/5ths Vote: Yes - No XI Council Referral Number: ~ BACKGROUND: Section 33490 of the Community Redeve[opment Law requires that on or before December 31, 1994, and each five years thereafter, each redevelopment agency that has adopted a redevelopment plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan that shall contain the specific goals and objectives of the agency for the project area, programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the project area. The implementation plan must also \.3-/ Page 2, Item 2 Meeting Date 12/13/94 contain an annual housing program with sufficient detail to measure performance over the five year period. RECOMMENDATION: That the Agency hold the requisite public hearing, consider and approve the resolutions adopting Five Year Implementation Plans (Attachments 4 through 8) including the Housing Implementation Plans therefor for the Agency's five Redeve[opment Project Areas. BOARDS/COMMISSIONS RECOMMENDATION: The OtayValley Road Redevelopment Project Area Committee considered and approved the draft Implementation Plan including the Housing Implementation Plan therefor for the Otay Valley Road Redeve[opment Project at their meeting of October 24, 1994 (minutes attached as Attachment 1). The Town Centre Project Area Committee considered the draft Implementation Plans including the Housing Implementation Plans therefor for the Town Centre [ and Town Centre II Projects at ¡heir meeting of November 1O, 1994. The PAC recommended approval of both Plans (minutes attached as Attachment 2). Several members of the Southwest Project Area Committee considered the Implementation Plan (including the Housing Implementation Plan) for the Southwest Redevelopment Project at a discussion meeting on November 21, 1994, and advised staff they were in general concurrence with the Plan, but wanted the Plan to emphasize the need to coordinate development activities with the Otay Valley Regiona[ Park, and encourage the development of multi-use recreational activity uses within the park areas that interface with the Project Area (see Minutes, Attachment 3). Their comments and emphasis have been added to the list of proposed programs and projects. The Bayfront Redeve[opment Project Area does not have a Project Area Committee. DISCUSSION: The adoption of Assemb[y Bill 1290 in 1993 and Senate Bill 732 in 1994 (which clarified certain ambiguities in AB 1290), require incorporation of certain time limits in redevelopment plans and the adoption, after public hearing, of five year implementation plans for all projects adopted prior to December 31, 1993 which includes all of Chula Vista's redevelopment projects. The legislation allows the time [imitations to be adopted by City Council ordinance and the Implementation Plans including the Housing Implementation Plans therefor to be adopted by Agency resolution on or before December 31, 1994. The City Council, at its November 1, 1994 meeting considered, and placed on first reading an ordinance for each Project Area incorporating the statutory time [imitations. The second reading and adoption of each ordinance occurred at the November 8, 1994 meeting of the City Council. The Implementation Plans including the Housing Implementation Plans therefor for all five Project Areas are now presented for public hearing and consideration by the Redeve[opment Agency. The Implementation Plans including the Housing Implementation Plan therefor contain the following elements; " Specific goals and objectives as stated in the Redevelopment Plans; 3-;< Page 3, Item ~ Meeting Date 12/13/94 " B[ighting conditions as stated in the Redevelopment Plans (the Legis[ation sets more stringent criteria for new project areas); . Programs, projects, and objectives to be undertaken over the next five years; " An explanation of how the goals and objectives, projects, and expenditures will eliminate blighting influences in the project area; " A Citywide annual housing program in sufficient detail to measure performance including the number of housing units to be developed, rehabilitated, price-or otherwise restricted or destroyed; and " Description of the Agency's annual use of its Low- and Moderate-Income Housing Funds. The Implementation Plans including the Housing Implementation Plans therefor must be reviewed and approved every five years hereafter following a public hearing until termination of the Redevelopment Plans. Progress on each Implementation Plan including the Housing Implementation Plan therefor must be reviewed by the Agency, following public hearing, during the third year following adoption of the Plan. Implementation Plans including the Housing Implementation Plan therefor can be amended by the Agency, following public hearing, at any time. The Implementation Plans including the Housing Implementation Plans therefor presented at this meeting contain all required elements. The proposed programs, projects, and expenditures for each of the Project Areas are summarized below. Because the redevelopment projects do not anticipate dislocating a large number of low and moderate income housing units, and because most of the replacement housing sites are located outside of the project areas, one housing plan has been prepared incorporating the requirements and information for all Project Areas. The Housing Implementation Plan is Exhibit C to each of the Implementation Plans. A summary of the programs and anticipated expenditures for each Project Area, as described in the Implementation Plans, appears be[ow. It needs to be noted these programs/projects do not represent limitations on Agency activities, or all of the programs/projects necessary to eliminate blight in the individual project areas. The programs/projects included in the Implementation Plans are for planning purposes and do not obligate the Agency to include specific projects or expenditures in yearly budgets or work programs. The Legis[ation does not have a specific consistency requirement. However, the need for continuity is implied by the nature and purpose of the Implementation Plan requirements. [f consistency does not exist between the Plan and future Agency actions, the Implementation Plans can be amended at any time following public hearing. Adoption of the Implementation Plan including the Housing Implementation Plan therefor does not constitute an approval of any specific program, project, or expenditure and does not change the need to obtain any required approval of a specific program, project, or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the redevelopment project. Other projects which meet program requirements may also be pursued by the Agency. JJ Page 4, Item ~ Meeting Date 12/13/94 Pursuant to Section 33490, the adoption of an Implementation Plan is not a project within the meaning of Section 21000 of the Public Resources Code (CEQA). However, the inclusion of a program or project within an Implementation Plan does not eliminate the need for environmental analysis at the time such program or project is finally approved. Summary of Proarams The charts below summarize the programs and costs which are proposed in the Implementation Plans for each Redeve[opment Project Area. These activities will provide the focus for Agency planning and implementation activities over the next five years; but, as described above, will not preclude other activities which will also carry out project goals from being undertaken. A[so, the figures for each line item should be considered tentative since they have not had any management review. PROJECT AREA PROGRAMS/PROJECTS EXPENDITURES Bayfront 1. Complete Development Agreement for MidBayfront $ 200,000 2. Amend Redevelopment Plan 100,000 3. Clean up Contaminated Properties'"' 130,000 4. Initiate MidBayfront Parks and Infrastructure 100,000 5. Disposition of Agency Property Includes funds from other sources. PROJECT AREA PROGRAMS/PROJECTS EXPENDITURES Otay Valley Road 1. Complete Otay Valley Road Improvements'"' $12,351,634 2. Resolve Soil/Water Contamination Issues 75,000 3. Expand Auto Park, Relocate Animal Shelter'"' 700,000 4. Resolve Circulation Issues'"' 275,000 5. Support Otay Regional Park'"' 360,000 Includes funds from other sources. PROJECT AREA PROGRAMS/PROJECTS EXPENDITURES Town Centre I 1. Redevelopment of Third/Alvarado site $ 125,000 2. Vicinity of H Street/Third Avenue 138,000 3. Town Manager ConceptlPromotions & Marketing'"' 152,000 4. Capital Improvements 225,000 5. Public Parking Facilities'"' 713,000 6. Joint PubliclPrlvate Programs'" 100,000 Includes funds from other sources. PROJECT AREA PROGRAMS/PROJECTS Town Centre II 1. Redevelop Commercial Sites $ 200,000 2. Facilitate School District Projects 200,000 3. Relocation of City Public Works Yard'"' 22,500,000 4. Expand City Hall Parking'"' 200,000 Includes funds from other sources. 3-1 .... -. Page 5, Item ~ Meeting Date 12/13/94 OJECT AREA PROGRAMS/PROJECTS EXPENDITURES Southwest 1. Complete and adopt Economic, Land Use, and Zoning Study $ 80,000 2. Encourage redevelopment of the Nelson Sloan and Fenton properties in coordination with the planning of the Otay Valley Regional Park 200,000 3. Evaluate the feasibility of providing financial assistance to facilitate parcel consolidation along north side of Main Street and along S. Third Avenue with an emphasis on the encouragement of owner participation 200,000 4. Establish a business retention/relocation program 100,000 5. Establish an industrial/commercial property rehabilitation loan and/or grant program 100,000 6. Initiate and complete planning designations for the West Fairfield and Faivre Street Study Areas'" 150,000 7. Main Street Widening project/rlght-of-way acquisition'" 5,000,000 8. Redevelop the vacated South Bay Chevrolet and Fuller Ford sites on Broadway 200,000 9. Complete Phase II of the Palomar Trolley Center 50,000 10. Encourage development of vacant Price Company property 50,000 11. Encourage the planning of the Otay Valll3Y Regional Park which borders the Project Area to include active multi-use recreational activity uses therein. 200,000 rom ot er sources. FISCAL IMPACT; The expenditures listed above are estimates of costs to complete projects over five years. They include staff, consulting, testing, and construction costs, where appropriate. For the most part, revenues will be provided by tax increments accruing from each Project Area. For some projects, funds will be provided from other sources as well. These projects include the completion of Otay Valley Road relocation of the Public Works Corporation Yard and Anima[ Shelter, expansion of City Hall parking, and Main Street Widening project. The cost estimates for the projects listed above are based upon available cash flow from each redevelopment project area net of debt service and administrative costs. Attachments to Staff Report: 1. Minutes: Otay Valley Road Project Area Committee 2. Minutes: Town Centre Project Area Committee 3. Minutes: Southwest Project Area Committee 4. Bayfront Redevelopment Project Implementation Plan and Housing Implementation Plan Therefor 5. Otay Valley Road Redevelopment Project Implementation Plan and Housing Implementation Plan Therefor 6. Southwest Redevelopment Project Implementation Plan and Housing Implementation Plan Therefor 7. Town Centre I Redevelopment Project Implementation Plan and Housing Implementation Plan Therefor 8. Town Centre II Redevelopment Project Implementation Plan and Housing Implementation Plan Therefor 9. Public Hearing Notices: as published in the Star News 10. Public Hearing Notice Posted locations 11. Public Hearing Notice as Posted IC:IWP51 IAGENCYIRA4SIIMPLAN-2.RA41 3-3 ~ þa;}E- b-lank! 3-(p - ATTACHMENT 1 DRAFT Minutes OTAY VALLEY ROAD PROJECT AREA COMMITTEE Monday, October 24, 1994 Conference Rooms 2&3 9:00 a.m. Public Services Building 1. ROLL CALL Present: McMahon, Palumbo, Hall, Absent: Casillas (excused), Nava (excused) Others: Redevelopment Coordinator Kassman, John McCormick, property owner 2. APPROVAL OF MINUTES from the meetings of July 25 and August 22, 1994 MSC(Hall/Palumbo) to approve as submitted (4-0-2). 3. Review and Discussion of Draft Otay Valley Road Five Year Implementation Plan Staff explained that recent changes in State law, including AB 1290 and SB 732 require that the Agency pass a five year implementation plan for each of the project areas before the end of the calendar year. These plans have to include a listing of the blighting influences in the project area, proposed goals and objectives, programs, projects and expenses which the Agency will undertake within the next five years. The Implementation Plan also has to explain the relationship between the programs and expenditures and removal of blighting conditions in the project area. The Housing Plan is also required to be part of this project, however, this plan has not yet been completed, There are two low-moderate income housing units in the project area on the Davies property which will be removed when that property is redeveloped. However, there are no housing sites within the project area for replacement housing. All of the property in the project area is zoned for light industrial development. The Committee discussed the programs and projects in the report. Chairman Palumbo questioned whether removal of the contaminated soils on the Shinohara property was included. Staff indicated that was part the program for soils and groundwater remediation. MSC (Hall/Palumbo) to approve the Draft Otay Valley Road Five Year Implementation Plan (3-0-2). 4. STATUS REPORTS: a. Auto Park - Update on status of Auto Park b. Otay Valley Road - Update on status of Otay Valley Road Widening Staff gave an update on the Auto Park and the Otay Valley Road projects. On October 17, the Chevrolet dealership on Auto Park Way was opened for business. For the first two days of operations they sold 3 new cars each day. Business seems to be continuing well at the new location. The Ford dealership is due to move in mid-November. .3-7 ~ þa;}£ blank! 3-ð' #\ ~ . MINUTES ~~ ATTACHMENT 2 TOWN CENTRE PROJECT AREA OMMITTEE CITY OF CHULA VISTA Thursday, November 10, 1994 Council Conference Room 8:45 a.m. City Hall 1. Roll Call Members Present: Chairman Blake[y, Members Winters, Hawk, Mason, Altbaum and Killian. Members Absent: None. Staff Present: Principal Community Development Specialist, Pamela Buchan; Redevelopment Coordinator, Fred Kassman; Community Development Specialist, Miguel Tapia. 2. Approval of Minutes of October 6, 1994. Chairman Blakely asked for a clarification as to whether or not Ms. Killian's absence at the last meeting was excused or unexcused. Mr. Tapia indicated that Ms. Killian had notified him that she would be absent from that meeting and requested to be excused. However, since Mr. Tapia was absent from that meeting as well, he was unable to inform the Committee. The Committee asked that today's minutes indicate that Ms. Killian's absence at the meeting of October 6, 1994 was excused. REDEVELOPMENT BUSINESS 3. A. Town Centre I Redevelopment Project Area Implementation Plan (as required by AB1290) B. Town Centre II Redevelopment Project Area Implementation Plan (as required by AB129Q) Redevelopment Coordinator Fred Kassman explained the reason for putting this item on the agenda. He indicated that recent changes in State legislation require that the Redeve[opment Agency adopt Five- Year Implementation Plans for each Redevelopment Project Area. The law requires that the plans be adopted after a public hearing has been held by the Agency. Since this Committee has jurisdiction over both Town Centre I and Town Centre II, the plans for the Town Centre I and II are being presented to the Committee for review and recommendation to the Redevelopment Agency. He stated that the Committee's task is to review the list of projects and the relationship between the projects in eliminating the blight conditions. The list has been compiled with the projects that are perceived to be the most important ones within the next five years. Member Altbaum asked if the monies that are proposed to be spent are in the bank. Mr. Kassman responded that they ~re estimated revenues which will come out of Redevelopment. In some cases, the money will come from other sources such as assessment districts, grants, etc. Ms. Buchan stated that in the case of Town Centre [ some of the money will come from mixed funds such as redevelopment tax increment, C[P accounts, and the in-lieu parking fund account. Member Altbaum asked if there would be $22,500,000 available for the relocation of the City public works yard in Town Centre II. 3-1 DRAFT Minutes November 10, 1994 Page 2 Mr. Kassman said that he did not know if those funds would be available but that the funds for the purchase of the corporation yard site (about $2.5 million) are available now and the source of those revenues is gas tax money. Member Altbaum asked if it could be possible for the City to purchase a site for $2.5 million and then have no funds to develop it and own it for years and years. Mr. Kassman answered yes, that could be possible. However, he said bonds could be issued and the relocation is a five to ten year program and will not occur very soon. He added that the current site is only six acres and is not enough property and since the City is growing to the east the present location is not a very good location for the corporation yard. It is also serving as a bus depot. There is a plan to move it to the east and negotiations have started for a site located at the Otay Rio Business Park. It is a 30-acre site and the City is moving forward to purchase that piece of property in anticipation of moving the yard at some time in the future. He said that there may be a DIF fund set up. That would mean that everybody who develops would have to make a payment of a certain amount of dollars into a DIF fund which would then go towards the expansion of the City Hall facility. He said he suspected that the corporation yard would be done like that as well. Member Altbaum stated he was concerned that there is no mention of any plans to improve the corner of Third Avenue and E Street. The list of projects presented in the report does not include plans for redevelopment or upgrading of -these properties. He asked if that could be added to the plan. Ms. Buchan rêsponded that it could be. She said that one of the things that she looked at was the priorities and the focus areas that we have been looking at. The E Street area has not been a focus at this point; but, it has not been precluded. It has been listed under General #6. She added that she has been focusing more on the larger areas of development such as the Windmill Farms site and the Third Avenue and H Street property. Member A[tbaum said he was surprised that the focus had been on Third Avenue and H Street instead of Third Avenue and E Street. Ms Buchan responded that one of the reasons was that the Agency owns the property at Third Avenue and H Street but not the property at Third Avenue and E Street. Although we can encourage the development of property, caution should be taken in not taking verbally a piece of property that we do not own. Member Altbaum said that he would like to see a specific statement in the Implementation Plan that would state that the City would encourage development at the Third Avenue and E Street site. He mentioned that Third Avenue and E Street is a gateway to the Downtown area and in his opinion is probably the worst intersection around. . Ms. Buchan said that since the leader Building is near Third Avenue and E Street, a general statement could be included in the Implementation Plan stating that the City would like to encourage redevelopment in the area of Third Avenue & E Street. Discussion followed regarding the condition of the leader Building and whether or not use of it has ever been considered by any City or government agency. The question was also asked as to whether or not there is a law which would allow eminent domain of a property if it becomes a blight in the Community. Mr. Kassman responded that the City has the power to take the property under eminent domain if we had a good project that would be in the public's best interest. ..3 -10 -- DRAFT Minutes November 10, 1994 Page 3 Member Killian asked how would the City go about encouraging enhancement of the property on Third Avenue and E Street. Ms. Buchan said that if there was a developer that wants to go in there, then the City could help bring the developer together with the owner. Member Mason clarified the task of the Committee in relation to this item. He said that basically the objective of this document pertains to the fact that a Bill was passed and any action taken has to be tied into the blight problem. The goals and objectives have been taken from the Redeve[opment Plan and what we are doing is restating them to fulfil the requirements of the law. Member Mason asked about the estimate of $115,000 (over a 5-year period) for upgrading the parking lot. He asked what exactly would be covered by that. Ms. Buchan answered that that would be for the two parking lots on Church Avenue, one on Landis Avenue and Davidson and the Madrona Street parking lot. The expenditure would be for landscaping, safety lighting and general upgrading. Member Mason also asked whether the $75,000 5-year estimate for staff consultation for the Town Manager position included the Town Manager's salary. Ms. Buchan said that did not include the Town Manager's salary. Member Mason said that there should be an additional notation to indicate that the $75,000 figure is exclusive of the Town Manager's salary. Chairman B[ake[y asked if the school district is vying for the Windmill Farms property. Mr. Kassman responded affirmatively. With regard to the Implementation Plan for Town Centre II, Chairman Blakely asked for an update on the hospital project. Mr. Kassman said that Scripps is rethinking their position in the market place. He added that a letter was sent to Scripps asking them what their plans are. They responded that they are analyzing the current market and will be meeting with the City in December to discuss their plans. He said that it is anticipated that their plans are calling for downsizing the facilities, with the hospital becoming more of a large outpatient clinic facility. He added that he is not certain of where Scripps is heading; but they are heading towards a change. As soon as the meeting takes place, the information will be brought back to this Committee. Chairman B[ake[y asked if the Redeve[opment Agency had any money invested in this project. Mr. Kassman answered that only staff time and legal consulting expenses have been incurred. Chairman Blakely asked why the estimate for the construction of the parking lot in Town Centre II was $200,000 compared to the estimate for parking lots in the Town Centre I Project Area. He asked if the $200,000 figure included relocation. Mr. Kassman said that relocation was completed. Chairman Blakely asked then if the total cost of the lot was going to be more than $200,000. Mr. Kassman answered yes. Discussion followed about the requirements for a City employee parking lot versus a 3-/1 Minutes DRAFT November 10,1994 Page 4 City public parking lot and the difference in costs. MSUC (Altbaum/Mason) (6-0) to accept the Implementation Plans for Town Centre I and Town Centre II with the condition that staff incorporate a reference on page 7, F. Joint Public/Private Programs to encourage the redevelopment of properties such as that located at the corner of Third Avenue and E Street and on page 6, C. Downtown Business AssociationlTown Manager Promotions and Marketing to clarify the expenditures to exclude the Town Manager funding. Chairman's Comments: None. Member's Comments: Member Mason expressed concerns regarding the electronic message board at the corner of Third Avenue and H Street. He said that two weeks prior to the election they displayed politically motivated messages. He also said that he did not feel that they were displaying the agreed upon 30% public service announcements. Member Hawk stated that she has noticed that the Farmers' Market has been advertised on the electronic message board and also has noticed that alot of the advertisements are now in Eng[ish and Spanish. Chairman Blakely asked if it would be possible to invite a member of the Downtown Business Association to participate in the Project Area Committee as an Ad-Hoc member. Ms. Buchan said she would write them a letter. Member A[tbaum said he has not seen Valerie, the Parking Enforcement Officer, and asked about her. Ms. Buchan answered that she is on vacation. . Staff Comments: Ms. Buchan stated that according to the rules of the Town Manager Selection Committee a member of the Town Centre Project Area Committee sits in on the Selection Committee. She understood that Dan Mason had expressed a desire to sit in on this committee and asked if anyone else would be interested. Dan Mason was selected to participate in the Selection Committee. Public Comments: Adjournment: The meeting adjourned at 10:00 a.m. to the next regular meeting scheduled for December 1, 1994. IFile:\TCPACMIN\b:\Novl 0--94.minl 3-/.;2.. -- ATTACHMENT 3 DRAFT MINUTES SOUTHWEST PROJECT AREA COMMITTEE Monday, November 21, 1994 Conference Room 1 4;40 P.M. Public Services Building CALL TO ORDER/ROLL CALL The meeting was called to order at 4;59 p.m. Members Present: Members Jones, McFarlin, Platt, Campbell. Members Absent: Chairperson Brown, Members Olalde, LaGuardia. Staff Present; Principal Community Development Specialist, Lyle Haynes. Mr. Haynes stated that since there is no quorum (due to two vacancies only four of the nine are present) the minutes cannot be approved nor can there be any discussion of items not on the Agenda. 3. REPORT & DISCUSSION Mr. Haynes said that this item is a report and discussion on the Five-Year Implementation Plan. According to instructions issued by the City Attorney because of a lack of quorum the Committee is free to discuss and advise staff of their individual comments on the draft plan; but, no formal vote can be taken. He said that the City Attorney also advised that it would be preferred if the Committee members could reach a consensus on the advisement to staff on the adequacy of the document. If there is no consensus, then individual comments would be acceptable. Mr. Haynes gave a brief overview of the Five-Year Implementation Plan. He said that the Five-Year Implementation Plan is a requirement of the provisions of AB-1290 which requires that on or before January 1, 1995, each Redevelopment Agency within the State of California adopt a Five-Year Implementation Plan for their Redevelopment Project Areas. The purpose of the plans are to outline five-year strategies for proposed programs, projects and expenditures for the Redevelopment Project Area that will comply with the goals as stated in the Redevelopment Plan with the main objective being the elimination of blight. The emphasis of the State legislature was to provide an additional mechanism whereby local jurisdictions must show that a nexus between the financial expenditures at the local level and specific programs aimed for the elimination of blight. With that in mind, staff has prepared Five-Year Implementation Plans for each of the Project Areas. Mr. Haynes asked for input from the Committee. ,J -1-3 Member Campbell suggested that if number 4 and number 5 (loan programs) are conditioned upon the adoption of number 1, then maybe it should be stated in the document as so. He also questioned number 7 where it referred to the Main Street widening. Member Campbell asked if his assumption that it was referring to the section of Main Street from Interstate 5 to Interstate 805 was correct. Mr. Haynes responded that that was generally correct although some portions have already been widened. Member Campbell suggested that it be noted. Member Campbell continued with his next comment on number 8. He suggested that a clarification be made so as not to confuse the current location of the auto park dealers with the vacated lots on Broadway. Member Jones asked with regard to number 4 and 5, if they are going to be a revolving rehabilitation loan program. Mr. Haynes said yes. Tom Silva (present at the meeting as an Assistant to Member Campbell) then asked what happens if number 1 never gets off the ground. Does that mean that number 4 and 5 will never be set up. Mr. Haynes replied that the Economic Zoning Study will go forward in some form. He said that early indications of the Economic Study showed that those loan programs are much needed by the City. Nevertheless, staff must get direction from Council to implement any program. Member Jones said that under number 4 and 5 a sentence should be added that would identify the source of program funding. Member Platt asked if it was necessary or appropriate to include priorities among the projects. Mr. Haynes said that it would probably not be appropriate to set priorities according to the instructions given to staff from the attorneys and consultants. Member Jones asked if the Implementation Plan would give staff the authority to do it in case the Agency decides to move in that direction. Mr. Haynes replied that it is a policy document from the Agency that says these are the general major parameters in which we want the Agency to go in the next five years. If there is a major deviation from this, then staff would need to go back to the Agency for an Implementation Plan Amendment. Member McFarlin asked about the development of the Nelson-Sloan and Fenton properties. She asked specifically what property is being referred to. Mr. Haynes pointed out the Nelson-Sloan and Fenton properties on a map referring ..5 - /4 generally to the properties south of Main Street between Beyer Boulevard and Beyer Way. Member McFarlin then asked about the properties listed in number 3 and voiced concern over the displacement of existing businesses on the north side of Main Street. Mr. Haynes stated that the emphasis (as always) will be on owner participation but in the event that such redevelopment activities do take place in the future, that its quite possible that some relocation would be necessary. However, with the protections under State law, the property owner is assurred of being paid the fair market value for their property and being relocated at the City's expense. Member Campbell suggested adding a statement to the goals which would say that item number 2 (Fenton and Nelson-Sloan properties) be coordinated with the Regional Park, it (the property) needs to have recreational opportunities as well as housing that would support those recreational activities. Mr. Haynes said he would add it as number 12. "(See note below.) Member McFarlin asked where the vacant Price Company property was. Mr. Haynes said it was the lot behind the Price Club south of Harborside. Mr. Haynes expressed his appreciation to the Committee and informed the Committee that he would amend the Implementation Plan to reflect the Committee's suggestions. The Committee's input will be incorporated into the report that will go to the Agency and then they will give staff direction. "Note: Instead of adding a new project, the Committee's input with respect to encouraging recreational opportunities was added on to project number 11. [SSlc:lwpwinIHayneslsw11-21.min] .3 -IS CJhú þ~E- Clank! 3 -Ib - ATTACHMENT 4 FIVE YEAR IMPLEMENTATION PLAN (Health & Safety Code Section 33490) BAYFRONT REDEVELOPMENT PROJECT I. INTRODUCTION AND BACKGROUND A. Introduction The five-year Implementation Plan for the Bayfront Redeve[opment is an adopted to meet the requirements of Section 33490 of the Hea[th and Safety Code. This plan is a flexible policy document and not a [imitation on the Agency's activities in this project area. B. Background The Bayfront Redeve[opment Project; comprising 637 acres was established in 1974. This project area, which encompasses property west of [-5 from D Street to L Street originally included a variety of [and uses ranging from industrial to farming. The Redeve[opment Area boundaries are described on the attached map (Exhibit A). Large sections of the project area, notably the Mid-bayfront and D Street Fill are undeveloped and lack infrastructure improvements. They also contain valuable wetland resources and provide access to the San Diego Bay. Deve[opment of the Mid-bayfront has long been a major goal of the City. Ear[y plans for this area were rejected by the California Coastal Commission. Subsequent plans, approved by the Commission, were the subject of litigation with the Sierra Club. Finally in January 1993, a revised Loca[ Coastal Plan (LCP) including substantial conservation and development of the Mid-bayfront was approved by the City and the Coastal Commission. Negotiations between the Agency and the owner/developer for the preparation of an agreement describing and controlling development and conservation activities have been ongoing since approval of the LCP. The Specific Plan and the Loca[ Coastal Plan require extraordinary dedication of land, development of public improvements, and long-term mitigation monitoring which hinder the ability to economically develop the property. The original Redeve[opment Plan has a duration of twenty-five years, and will terminate in 1999. A Redeve[opment Plan amendment will be necessary to extend the life of the Plan to the maximum allowed under State law (to the year 2014) in order to incorporate, control and provide financial assistance for development of the Mid-bayfront. The Implementation Plan is intended to be a flexible policy document to guide Agency activities over the next five years (1995 through 1999) and is not intended to represent a limitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years; however, they are not all of the programs/projects necessary to eliminate blight iQ the project area. Financial Condition of the Project Area; Financia[ limitations have been established for the project area as follows: "The aggregate amount of tax revenues which may be divided and allocated to the Redeve[opment Plan for the Bayfront Redeve[opment Project shall be limited to the amount which would be required in any fiscal year to pay the principal and interest coming due in such fiscal year on loans, advances or indebtedness issued by the Agency in the aggregate principal amount of Fifty Million Dollars ($50,000,000), the total actual amount of which principal and interest is $210,000,000." (Ordinance No. 2585) .3 -/7 Bayfront Redeve[opment Project Area Five Year Implementation Plan Page 2 For the purposes of clarification, the $50,000,000 amount represents the maximum total principal and interest indebtedness that can be outstanding at anyone time. Further, the $210,000,000 amount represents the total tax increment that can be collected, but it's use is not limited to debt service on bonded indebtedness; those funds can be used for such other costs as reasonable operating expenses and affordable housing set-aside obligations. II. BLIGHTING CONDITIONS A. Pre-Plan BliQhtinQ Conditions When the project area was adopted in 1 974, the reasons for the selection of the project area were the following; 1. The danger to the quality and quantity of the marine life due to uncontrolled development of a project area which contains such unique features as salt marshes and endangered wildlife species. 2. The decline in coastal environment, including recreation and aesthetic values, due to the uninterrupted water-related general industrial development in the South Bay area. Deve[opment of this nature is obviously contra-indicated due to the lack of deep water access. 3. The desire to create a modern urban commercial/recreational center for the City of Chu[a Vista where a range of activity from housing to recreation could take place and where a living and working environmental could exist for the use and enjoyment of the general public. 4. The existence of soil and groundwater contamination from hazardous materials that have depreciated property values and impaired investments and that can only be practically, economically remediated through the use of redevelopment powers. 5. The substantial existence of environmentally sensitive and degraded wetlands which require extraordinary [and dedication, restoration, and long-term mitigation monitoring, all of which create a substantial burden on the economic use of the properties and result in depreciated values and impaired investments. 6. The lack of public improvements and utilities, which combined with the blighting conditions listed above, creates a serious physical and economic burden on Chula Vista which cannot be alleviated practically by government or private activity without redevelopment powers. [n addition, the report on the redevelopment plan states; "Because of the general industrial character of the South Bay, the project area represents one of the last opportunities to provide public-oriented bayfront uses in this area... " .3 -(f Bayfront Redevelopment Project Area Five Year Implementation Plan Page 3 B. ProQress in EliminatinQ BliQhtinQ Conditions Since adoption of the Plan in 1974, the Agency has worked to eliminate certain of these conditions through the following efforts: 1. Prepared a Mid-bayfront Development Plan in conjunction with the landowner/developer and regulatory agencies. 2. Prepared and processed Local Coastal Plan through the California Coastal Commission and received certification in February 1993. The plan includes all of the City's coastal properties, including the Bayfront Redeve[opment Project Area. 3. Planned and constructed the Nature Interpretive Center in cooperation with the Bayfront Conservancy Trust. 4. Acquired and cleared properties for redevelopment along Bay Boulevard, north and south of F Street. 5. Successfully relocated auto wrecking businesses from the project area. 6. Acquired property for the reconfiguration of the CalTrans 1-805 southbound off-ramp which has been completed along with the widening of E Street, west of [-5. 7. Completed the following redevelopment projects: Anthony's Restaurant Days Inn EI Torito Restaurant Rohr Corporate Headquarters Marina Gateway Industrial Project C. Current BIiQhtinQ Conditions Despite the progress that has been made to date, existing blighting conditions in the project area are as follows;; 1. The existence of soil and groundwater contamination from hazardous materials that have depreciated property values and impaired investments and that can only be practically, economically remediated through the use of redevelopment powers. 2. The substantial existence of environmentally sensitive and degraded wetlands which require extraordinary land dedication, restoration, and long-term mitigation monitoring, all of which create a substantial burden on the economic use of the properties and result in depreciated values and impaired investments. 3. The lack of public improvements and utilities, which combined with the blighting conditions listed above, creates a serious physical and economic burden on Chu[a Vista which cannot be alleviated practically by government or private activity without redevelopment powers. :5 -It¡ Bayfront Redeve[opment Project Area Five Year Implementation Plan Page 4 III. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA To address the conditions listed in II C above, the following goals are being pursued: 1. Enhance depreciated property values and encourage private development by the elimination of the economic blight created by the existence of soil and groundwater contamination in the Bayfront; in particular, exercise State Polanco Act authority to make economically viable the clean-up of Agency-owned properties on Bay Boulevard near F Street and the "Shangri-La" property. Such clean-up would not be economically practical without the redevelopment powers deriving from "Po[anco." Once "clean," those properties can be disposed of for redevelopment purposes. 2. Provide for the enhancement and dedication of salt marshes, the inclusion of development buffers from sensitive habitat. and financial support for long-term mitigation programs in a manner which will not burden development to the point of infeasibility by negotiating disposition and development agreements with developers and by providing redevelopment-generated funding. 3. Provide for the delivery of public improvements in the project area such as streets, trails, parks, and drainage facilities through the utilization of redevelopment-generated funding, thereby allowing for the elimination of the blighting burden of the existing inadequacy of such improvements and the obligation on the developer to unilaterally provide such improvements, thereby creating the opportunity for the orderly, desirable, and economically-viable redevelopment of the Bayfront. IV. PROGRAMS. PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS Major programs and related expenditures proposed over the next five years are described below. Specific projects may be proposed under each program. These serve as examples of projects which may be undertaken by the Agency. However, other projects which meet the program requirements may also be pursued. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administrative costs. A. ComDletion of Midbavfront DeveloDment Aareement Since approval of the Loca[ Coastal Program for the Chula Vista coastal areas, including the Bayfront Redevelopment Area, staff has been negotiating with the Midbayfront property owner/developer towards completion of a development agreement for this 105 acre development site. The proposed project includes 1600 hotel rooms, 1000 dwelling units, waterfront parks, lagoons, sports facilities and a cultural arts center. [t also includes funding for the City's Nature Center. Major negotiating issues include funding for the cultural arts center and Nature Center, development staging, delivery of public improvements, implementation of environmental mitigation, and financial assistance from the Agency. ..3 -;¿ 0 Bayfront Redeve[opment Project Area Five Year Implementation Plan Page 5 Total staff and legal consulting services costs for completion of a Deve[opment Agreement are estimated at $200,000. We anticipate the likelihood of additional major expenditures to implement this program. B. Amend Bavfront RedeveloDment Plan The Bayfront Redevelopment Plan is scheduled to terminate in 1999. The Plan was completed in 1974 and does not include recent changes in state law or the approved Loca[ Coastal Plan. The Redeve[opment Plan must be amended to extend the term to the maximum allowable under current law (year 2014) and incorporate legislative changes and the recently approved Local Coastal Plan. An estimated $100,000 in staff and consulting services will be required for this activity. C. Clean UD Contaminated ProDerties The Agency owns several properties on the Bayfront with contaminated soils. Clean-up of these properties has been initiated with funding assistance from former property owners and insurance companies under the State Polanco Act. The Agency will oversee clean-up activities. Completion of clean-up work is expected to cost $330,000, of which $130,000 will be attributable to the Agency in staff and consultant costs. D. Initiate Gradina. Infrastructure and Park ImDrovements in the Midbavfront The Midbayfront Deve[opment Plan includes approximately $42 million in public improvements (streets, parks, lagoons and conservation). It is the Agency's goal that this work be initiated in the next five years. This will require the preparation, analysis and processing of the Specific Plan, grading plans, and related reports. Agency/City costs to review and process required documents are estimated at $100,000, some of which will be reimbursed through permit processing fees. E. DisDosition of Aaencv ProDertv at Bav Boulevard and E Street ProDertv The Agency owns a six-acre site at the northeast corner of Bay B[vd. and E Street which will be accessed through the Midbayfront. The development of this site is dependent upon staging of Midbayfront development and completion of infrastructure to provide access. The value of this property has been depreciated by the existence of contamination and substandard improvements for industrial use. The improvements have been removed. The contamination will be addressed by Project "C" above. The property, which has freeway visibility, will increase with consolidation of its parcels and as the Midbayfront project comes closer to reality. Marketing of this parcel should occur concurrent with the initiation of Midbayfront infrastructure improvements and is estimated to cost $20,000 in staff and marketing expenses. ..3 -.;t I Bayfront Redevelopment Project Area Five Year Implementation Plan Page 6 V. HOW GOALS. OBJECTIVES. PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have towards the alleviations of blighting influences as noted in the Redeve[opment Plan is described below and summarized in the attached matrix (Exhibit B). A. Goals and Objectives The goals and objectives, as stated in the Redeve[opment Plan and in Section [II above, will address blighting conditions caused by the existence of hazardous conditions, the extraordinary [and dedication and long-term mitigation monitoring required by the existence of sensitive habitat, and the lack of public improvements in the Bayfront. The goals and objectives support the creation of a modern urban center; a focal point with an identifiable image which compliments the downtown commercial district. B. ProQrams The specific programs and expenditures will eliminate blight as described below and summarized on the matrix attached as Exhibit B. 1. Como[etion of Midbavfront Develooment Aqreement Will provide the legal and financial framework to carry out the Midbayfront development program in compliance with the approved Local Coastal Plan. Requirements will include environmental conservation measures, infrastructure improvements, development phasing plan, development of bayside parks and recreational facilities, and funding for the City's Nature Center and proposed Cultural Arts Center. The agreement will also provide Agency financial assistance, conditioned upon performance, to carry out the project. The completion of the development agreement will define the participation by the Agency and the developer in the provision of the improvements and mitigation that burden the property and create economic blighting conditions. 2. Amendment of the Redeve[ooment Plan The proposed Midbayfront project, as approved in the Chu[a Vista Loca[ Coastal Plan, cannot be carried out without amendment of the Redeve[opment Plan to accommodate the approved LCP and extend the duration of the project to provide control over and financing for the multi-year project. The current Redeve[opment Plan, approved in 1974. will expire in 1999. Under state law, the plan can be extended to 2014. Amending the Bayfront Redevelopment Plan is essential to the elimination of blight in the Bayfront. The amendment will allow the time and the financial resources ..g~c2';( Bayfront Redeve[opment Project Area Five Year Implementation Plan Page 7 for the Agency to accomplish the goals and programs identified in this document. Without the amendment, none of the goals and programs are accomplishable. 3. Cleanup of Contaminated Prooerties At the time that the Bayfront Redeve[opment Pröject was approved, it was not known whether any properties contained soil or groundwater contamination, and these issues were not specifically listed as blighting influences. Subsequently, the Agency has acquired a number of properties in the Midbayfront, three of which contain contaminated soils with possible impacts to the groundwater. Contamination must be addressed to comply with state regulations if these properties are to be redeveloped. Cleanup of these properties will address conditions caused by earlier uncontrolled development which create a danger to the quality of marine life and decline of the coastal environment. Clean-up of the properties is essential to eliminating the blighting effect of the depreciation of the subject property. 4. Initiate Gradina, Infrastructure and Park Improvements in the Midbavfront The Agency-participation in the provision of these public improvements is essential to the elimination of blight, as the resources do not exist for the City or private developers to bear the total burden of such improvements. 5. DisDosition of Aaencv Propertv at Bav Boulevard and E Street Disposition and development of this property will alleviate blighting conditions that have depreciated property values. These blighting conditions have been created by the existence of contamination and the inadequately-sized lots. The Agency action will provide for clean-up of the contamination and the marketing for redevelopment of the consolidated parcels. VI. EXPLANATION OF HOW THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS A. Goals and Obiectives The Bayfront Redeve[opment Project was adopted prior to January 1, 1976, the effective date of Section 33413, thus the inclusionary housing provision of Sections 3341 3(b) do not apply to the Bayfront Redeve[opment Project. The project contributes 20% of all tax increment generated to the low/moderate income housing fund which provides Agency assisted housing both within and outside of redevelopment areas. Exhibit C further describes housing goals, production and funding. B. Projects and expenditures to be Made Durina the Next Five Years 1. Annual housing production goals have been established Citywide. See Citywide Housing Goa[s attached as Exhibit C. d -~.J Bayfront Redevelopment Project Area Five Year Implementation Plan Page 8 2. Estimated number of [ow/moderate income housing units to be destroyed in Years 1-5: - None - There are no low/moderate income housing units within the Project Area. 3. Rep[acement Housing Site As part of the Mid-bayfront development, one thousand new housing units are proposed. The City's housing program requires that the developer provide 10% [ow/moderate income units (100 units) on or off-site. The developer has indicated a preference to provide these units off-site. The provision of these units will be a condition of development and stipulated in the Deve[opment Agreement. 4. Low/Moderate Housing Fund Expenditure Program The Bayfront Redeve[opment Project redistributes 20% of the tax increments accruing from the Project Area to the Agency's Low/Moderate Income Housing Fund. Estimated deposits and expenditures are included in the Agency's Housing Plan, see Exhibit C. 5. Housing Production Plan - See Exhibit C. 6. Low/Moderate Income Housing Production Resu[ts - See Exhibit C. VII. Midterm Review and ReadoDtion and Amendment of the ImDlementation Plan Adoption of the Implementation Plan shall not constitute an approval of any specific program, project, or expenditure and does not change the need to obtain any required approval of a specific program; project or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the Redeve[opment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the initial Implementation Plan for the Bayfront Redeve[opment Project. This plan will be reviewed by the Agency at [east once within the five year term of the Plan. The review, including a noticed public hearing, will take place no earlier than two years and no later than three years after adoption of this Initial Plan. The Agency will bold a requisite public hearing and adopt a new Implementation Plan every five years from the date of adoption of the Initial Plan. The Implementation Plan may be amended by the Agency at any time following a noticed public hearing. ..3 ,. .:Uf Sheet 1 of 2 EXHIBIT "A" City of Chula Vista Bayfront Redevelopment gm- 'Ii õ . Redevelopment Areas (3 -,;}.j . z Are;:) 'OHO'M ~~ ~~ ~ 'þ.~ ~\€.GO ~ EXHIBIT "A" City of Chura Vista Bayfront Redevelopment 8m 'f! ~ Redevelopment Areas Area B -.;¿¿" :. z. 'o""'ac > g ro > 0> ~~ ~~ g;, ~ ~ .~ ~ ., '" eo> ci. "- 0 0.. c. ~ :> .~ ~ ~ ~ c """ ~Eu " g ~ ~ ell" "' ~ g> g , ,§ :e'6~ ' , ro £e~ ~ ~~ ~ £ ~ is u .9- CD ~ ~ ~.! § r~ ~ § - ~ 0 " U <:: ~ ~ 00.. ~ U ~ is coco> co,!: è co." ŒI ¡ij .~ ;:'2~8~ .~ ;:'~tg~E .~;:.:g ¡ ~ iEi:~¡iji- iEi~~~ ~!~ iEi: - ~ x~:ß¡¡¡.!:;rè:;.£ x~:ß"'o.'!?u1;;~c. x~:ß:,;"" ~ = :c.~5~w~! :c.~~E~i!g~ :c.~~E w u u.9cc."!?ro"ro u.9c"o=-èro> u.9co." æ '> ~ ç '0 .~ 1;; ii; > >- '> ~ ç ro ~.~ õ .Q .g' ~ .!!! 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E jg :!! ." ! u g- ~ ~Q) ~~:ß-E E!5¡¡'~æ.~~~'~ õ~õ:~!5:ii~ ~ .,> .- c.:>'" Cc.-u:>._Oo> -,,~~uc~""- aJii: ¡¡; ~~~ ~~K~E~~~~ j~~8~:¡¡~~ æ ;;: . . fi ~ N M åj !£ .3 -~7 'Jh¡;~ fa9F- blank! 3--'>! EXHIBIT C CITY OF CHULA VISTA REDEVELOPMENT PROJECT AREAS HOUSING IMPLEMENTATION PLAN; Bayfront Redevelopment Project Area Town Centre I Redevelopment Project Area Town Centre II Redevelopment Project Area Southwest Redevelopment Project Area Otay Valley Road Redevelopment Project Area I. [NTRODUCT[ON This housing implementation plan for the Bayfront, Town Centre [, Town Centre 1[, Southwest, and Otay Valley Road Project Areas has been prepared by Agency staff for the Chu[a Vista Redevelopment Agency (Agency). Pursuant to Section 33413(d), because the Bayfront Redevelopment Project Area was adopted prior to January 1, 1976, the inclusionary housing provisions of Section 3341 3 do not apply to the Bayfront Redeve[opment Project. The implementation plan is being prepared and adopted in accordance with the recently enacted AB 1290 legislation and addresses the housing production requirements. The key requirements of the legislation that this section of the implementation plan addresses are: . A description of the Agency's specific housing related goals and objectives for the project area, including specific programs, possible projects, and expenditures for the next five years. . A discussion of the Low/Moderate Income Housing Fund including the amount in the Housing Trust Fund, amounts to be deposited in the next five years and anticipated expenditures. . Proposed locations suitable for replacement housing units in instances where plan activities trigger the need for such units. . A description of how these goals, objectives, programs and expenditures will implement the [ow and moderate income housing set-aside and housing production requirements of the law, including an annual housing program. . A description of how these goals, objectives, programs and expenditures will increase and improve the inventory of [ow and moderate income housing units. [I. HOUS[NG PLAN - CHAS AND HOUS[NG ELEMENT The City of Chu[a Vista has adopted a Comprehensive Housing Affordability Strategy (CHAS) per the requirements for communities receiving funds from the U.S. Department of Housing and Urban Deve[opment (HUD). The CHAS, which was adopted for the period January 1, 1994 to December 30, 1999, includes; . Identification of the existing and projected housing needs and establishment of goals, policies, objectives and programs for the preservation, improvement and development of housing to meet the needs of all economic sectors of the community. . Description of the resources (human and financial), markets and strategies intended to meet the housing needs of the community. . Investment decision-making guides for elected officials, program administrators, community organizations and banks, hous'ing developers and concerned citizens. Attachment C ¡ Page 1 . long-term (Five Year Strategy) and short term (Annua[ Plan) guides which describe the general priorities, plans and allocation of federal, state, local and private resources and funds. The CHAS provides the City with estimates of current and future housing needs. Specific activities intended to provide assistance to the community were identified in the CHAS including goals, policies and program objectives to address the current and future need. The policies, goals and objectives for both the City's Five Year Strategy and One Year Action Plans are predicated on both the CHAS and the Chu[a Vista Housing E[ement. The Housing Element, adopted March 3, 1992 as part of the Genera[ Plan, contains an in-depth evaluation of the demographic, economical and social characteristics of the City along with projections and trends impacting housing and community needs. The broad goals established as part of the Housing E[ement are; . To promote and ensure the provision of adequate housing for all persons regardless of income, age, race, sex, marital status, ethnic background or other arbitrary factors. . To promote and ensure the provision of housing selection by location, type, price and tenure. . To promote and ensure the development of a balanced residential environment with access to employment opportunities, community facilities and adequate services. Taking these goals and Chu[a Vista's specific needs into consideration, the Housing E[ement describes all of the housing-related programs being implemented in Chu[a Vista, including; residential rehabilitation activities, new construction of affordable units, housing assistance programs for the aged and disabled, assistance programs for owners and renters, and fair housing and affirmative marketing. The City of Chu[a Vista, in cooperation with the City's Housing Authority and the Chu[a Vista Redeve[opment Agency, implements and administers the various housing programs developed through the CHAS and the Housing E[ement to address housing needs. Househo[d Income levels The CHAS identifies categories of community members needing assistance and establishes priorities based upon the findings compiled during the data gathering phase of the strategy development. The specific income groups being targeted are very [ow income, [ow income and moderate income households, which are defined by using the San Diego County median income level as the basis. The County median is determined annually, and is adjusted for household size. Based on the 1994 median income of $45,400 for San Diego County (assuming a 4 person household), the income groups are as follows; Income level Percent of Median 4 Person HH Income Very [ow 0% to 50% $0-$22,700 low 51%t080% $22,700-$36,320 Moderate 81 % to 120% $36,321-$54,480 Specific activities intended to provide housing assistance to target income groups were identified in the CHAS and given priority rankings. Attachment C Page 2 ) Housino Needs The unmet housing need in Chu[a Vista is quantified in the Housing E[ement based on the Regional Housing Needs Assessment prepared by the San Diego Association of Governments (SANDAG). These numbers indicate the following housing need by income group as of 1991: Income Leve[ Housino Needs as of 1991 Housino needs as of 1994 Very [ow 1232 1125 Low 628 610 Moderate 131 131 However, these calculations don't take into consideration the 107 very low income and 18 low income housing units that have been developed through financial assistance of the Agency. Taking these figures into account, the current housing needs for the five year plan are as shown above to the right. III. HOUSING FUND (TWENTY PERCENT SET AS[DE) REQU[REMENTS As part of the Agency's efforts to meet its unmet housing needs, tax increment housing set aside funds have been and will continue to be used to create affordable housing. units. The estimated amount of tax increment housing set-aside available for fiscal years 1994-95 through 1998-99 for the combined project areas is $5,964,051. Tab[e 1 on page following estimates the yearly tax increment by project area. The total revenues to be deposited over the five year period are estimated at $5.9 million. The beginning balance in the [ow and moderate income housing fund as of Ju[y 1, 1994 was $1,704,436. Thus, $7,668,358 in funds are projected to be available over the five year projection period. Allocation of Funds to Proorams The Allocation of these funds are presented in Tab[e 2. Based on existing programs and pro forma cost projections for new and rehabilitated units, up to 175 additional units could be created over the five year period. Funds are allocated among newly constructed and rehabilitated units as follows: 150 new housing units; and 25 rehabilitated housing units. [V. EXCESS/SURPLUS As defined in California Hea[th and Safety Code Section 33334.12(g)(1), an agency has an excess/surplus at any time that unexpended and unencumbered monies in the Agency's [ow and moderate income housing fund exceed the greater of $1.0 million or the total funds deposited in the [ow and moderate income housing fund over the preceding four fiscal years. For the purposes of complying with the current mandate, the Agency must determine whether an excess/surplus existed as of Ju[y 1, 1994. This is determined by comparing the unencumbered balance of the [ow and moderate income housing fund as of Ju[y 1, 1994, to the sum of the property tax increment housing set-aside deposited into the fund between fiscal years 1 989-90 through 1992-93. [f the amount of unencumbered funds in the account exceeds the sum of the deposits, the Agency has an excess/surplus. Attachment C Page 3 I ( Table 1 Low/Mod Housing Expenditure Program - Citywide Section 33490(a)(2) Prepared October 1994 Low and Moderate Income Housing Fund 1994-95 1995-96 1996-97 1997-98 1998-99 Starting Ba[ance $1,704,436 0 0 0 0 Total Annua[ Deposits a. 20% TI deposits by project area: a1. BF/TC[ $634,663 $738,845 $747,561 $756,451 $765,520 a2. OTVR $151,440 $169,177 $174,479 $179,479 $184,863 a3. TCII' $0 $0 $0 $0 $0 a4. SW $70,744 $116,287 $141,275 $167,387 $194,674 b. Interest + other income $189,100 $110,088 $74,432 $77,232 $80,153 Total Revenue $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be spent or committed 1994-95 1995-96 1996-97 1997-98 1998-99 annually a. To pay debt service on bonds used for 0 0 0 0 0 affordable housing b. For affordable housing projects2 $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be transferred to housing authority 0 0 0 0 0 or another public entity Funds to be accrued for specific projects 0 0 0 0 0 , Deferment or Credit for FY 93-94 and subsequent years for the 20% Set-aside is currently under consideration. 2 Includes administrative costs. Attachment C Page 4 ...; ) Table 2 Annual Housing Unit Production - Citywide Prepared October, 1994 Five Price Restricted Year Housing Production 1995 1996 1997 1998 1999 Total Housing Units to be developed 30 30 30 30 30 150 Housing Units to be substantially rehabilitated 5 5 5 5 5 25 Total housing units to be price restricted (acquisition of price restriction covenants 35 35 35 35 35 175 for existing housing) Housing Units to be otherwise assisted by the Agency (non- 45 45 45 45 45 restricted)3 Housing units to be destroyed as result of 0 2 0 0 63 redevelopment4 The Chu[a Vista Redeve[opment Agency deposited $2,792,234.00 to the low and moderate income housing fund between fiscal years 1989-90 and 1992-93. Comparatively, the unencumbered balance of the low and moderate income housing fund was $1,704,436.00 as of July 1, 1994. Thus, no excess/surplus currently exists. The annual plans included in this five year implementation plan call for the entire available balance in the [ow and moderate income housing fund to be expended annually. Thus, it is not anticipated that the Agency will experience excess/surplus at any time point during the five year planning period. 3 These units include housing units to receive minor rehabilitation through Agency assistance. The majority of the units are mobi[ehomes. 4 These units will be discussed later in the report. They are units the Agency plans to displace in the next five years due to redevelopment projects. Attachment C Page 5 ... V. REPLACEMENT AND [NCLUSIONARY REQUIREMENTS Section 3341 3(a) of the California Hea[th and Safety Code requires that whenever units housing persons of low and moderate incomes are destroyed or removed from the [ow and moderate income housing market as part of a redevelopment project, the Agency shall within four years of the destruction or removal, rehabilitate, develop or construct for rental or sale, to persons of low and moderate income, an equal number of replacement units. At least 75% of these replacement units must be made available at an affordable housing cost for the same income level as the household that was displaced. The Agency incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. This figure excludes units displaced in the Agency's Bayfront Redevelopment Project Area which was adopted July 16, 1974 and is not subject to the replacement housing requirement. Of the 157 units displaced, 104 were very [ow income trailers (one bedroom), 27 units were [ow income (one bedroom) and 26 units were [ow income (two bedroom). The replacement units must meet the following minimum income standards; Unit Tvee Income Level Number of units 1 bedroom very [ow 78 1 bedroom [ow 20 1 bedroom [ow or moderate ~ Tota[ 131 Unit Tvee Income Level Number of units 2 bedroom very [ow 0 2 bedroom [ow 20 2 bedroom low or moderate ~ Total 26 The above units were replaced with the following 184 very [ow and [ow income housing units built with Agency participation on a Citywide basis. These projects are the following: Project Number of units bv bedroom Town Centre Manor 59 (58 one bedroom and 1 two bedroom) Dorothy Street 22 (22 three bedrooms) Silvercrest 75 (74 one bedroom and 1 two bedroom) Civic Center Barrio 28 (6 one bedroom, 13 two bedroom and 9 three bedroom) The projects listed above contain 166 very [ow income and 18 [ow income housing units. These units fulfill the Agency's replacement obligation for the 157 housing units displaced in the past. Moreover, a surplus of very low and low income housing units was constructed beyond the requirement that 75 % of the units removed after September 1, 1989 be replaced with units having an equal or greater number of bedrooms and be available at an affordable housing cost for the same income level as the household that was displaced. Attachment C Page 6 \ f Proiected Housina DisD[acement and Deve[oDment Activities [n the next five years, there exists the possibility of 65 additional units being displaced due to potential redevelopment activity as follows: Proiect Area Number of Units disDlaced Town Centre I None Town Centre [I 48 [ow income mobilehomes & 15 [ow income apts Southwest None Otay Valley Road 2 low income sinale fami[v homes TOTAL 65 low income units The above 65 housing units add an additional development obligation of 65 [ow income housing units by the Agency. ReD[acement Sites The following is a breakdown of possible housing replacement sites and housing developments in project areas for the next five years. Town Centre [ . The Windmill Farms site is zoned Central Commercia[jR-3 High Density Residential. 2.65 acres. No housing development is expected on this site in the next five years. Town Centre [I . The Sweetwater Union High School District headquarter is planned to be relocated within the next 3-4 years. The current site is in zoned R1-P, [ow density housing, comprising 7.93 acres and can accommodate 18 housing units under this zoning. This housing should be affordable to moderate income persons and could be developed in the next five years. Southwest . Possible sites for future housing development may be located within the Woodlawn Park, Broderick's Otay Acres and southwestern Dorothy Street communities. However, no housing development is planned at this time to be developed in the next five years. Otav Vallev Road . All land in project area is zoned for light industrial development. There are no suitable housing sites within the project area. 'The Agency is not currently planning any activity which would result in the loss of these units. Attachment C Page 7 - . -- -- Affordab[e Housinq Production ([nclusionarv) Requirements Section 33413(b) (1) and (2) of the California Hea[th and Safety Code imposes inclusionary requirements on all housing units built in Redeve[opment Project Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after January 1, 1976, the following restrictions apply; 1. At [east 30% of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons of low and moderate income. Not less than 50% of those units (15% of the total) must be available to very [ow income persons. 2. For units developed by other public or private entities, at [east 15 % of the units must be affordable to [ow and moderate income persons; not less than 40% of these units must be made affordable to very [ow income persons. Affordab[e units created outside of the project areas may be counted toward this requirement on a 2 for 1 basis. In other words, if the Agency develops two affordable housing units outside of a project area, only one of the two housing units can be counted toward overall Agency production. Within the City of Chu[a Vista, all of the project areas are subject to the housing production requirements excluding the Bayfront Project Area which was adopted July 16, 1974. These requirements must be met every ten years in the aggregate, but are planned for on a five year basis. Past Housinq Deve[oDment Activities A total of 344 housing units have been built in all the project areas by entities other than the Agency generating an inclusionary housing requirement for 21 very [ow income units and 31 [ow or moderate income units. The breakdown of the 344 housing units by project area is as follows: Total 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre [ 235 35 21 71 14 0 Town Centre II 104 16 10 0 6 0 Otav Valley Rd 0 0 0 0 0 0 Southwest --9. -1. ..Q -1 -1 ..Q TOTAL 344 52 31 72 21 0 Between 1980 and 1990, the Agency provided financial assistance to 72 [ow and moderate income units and no very low income units. Thus, at present the Agency has a surplus of 41 low and moderate income units and an obligation for the development of 21 very low income units. Attachment C Page 8 - , Aaencv Assisted Housina for Next Five Years For all the redevelopment areas in the City, it is estimated that 18 moderate income units of housing should be developed in next five years. This project was referred to above in the Town Centre [[ replacement site selection. These units have the following affect to the Agency's current deficit housing situation in Town Centre II; Low/Mod Income Verv Low Income Existing Deficit in Town Centre II 10 6 Impact of TC[[ Housing (18 units'): ---2. -1 New Deficit in Town Centre II 12 7 As shown below, the 18 moderate income units when construc~ed in the next five years will create an additional surplus of 16 [ow and moderate income units for the Agency and an obligation for the development of one additional very low income unit. Total 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre I 235 35 21 71 14 0 Twn Centre II 104 16 12 18 7 0 Oty Valley Rd 0 0 0 0 0 0 Southwest ~ -1 ~ -1 -1 ~ TOTAL 344 52 33 90 22 0 Thus, the Agency will have a surplus of 57 low and moderate income units and an obligation for the development of 22 very low income units. AQencv Assisted/Price Restricted HousinQ Based on [ow/mod housing funds available, it is anticipated that 175 units will be developed or substantially rehabilitated over the next five years. Of these, it is estimated that 50 will , Section 33413 states that 15 % of the 18 TC II units must be affordable to [ow and moderate income and that 40% of the [ow/mod units must be affordable to very low income. [n this case, 18 X 15% = 3 [ow/mod units. (3 X 60% = 2 low/mod units) (3 X 40% = 1 very [ow income unit) Attachment C Page 9 '- 7 be developed/rehabilitated within the redevelopment project areas. The following inclusionary housing surplus should exist after five years; Low/Mod Income Very Low Income New Surplus/Deficit 57 (22) Plus: 175 Agency Income Restricted Units Produced; Within Project Area (20 units @ 1: 1 rati02) 10 10 Outside Project Area (155 units @ 2; 1 rati03) 50 22 (Less) Inclusionary Requirement (20 X .15 = 3 units) (2) (1) (Less) 65 displaced [ow income units (65) TOTAL SURPLUS ...§.Q .J!. VI. LINKAGE OF HOUS[NG SET AS[DE FUND EXPENDITURES W[TH NEED The City of Chu[a Vista, through the development of CHAS and Housing E[ement of the Genera[ Plan, has determined that there is a need to provide and encourage the development of very [ow, low and moderate income housing throughout major portions of the City. The planned use of the Housing Funds in the Project Areas will be undertaken in accordance with these policy documents, and will continue to be expended to fulfill these established goals and objectives. The use of these funds will directly increase and improve the supply of affordable housing within the City of Chu[a Vista. IBM\OISK#\HSGROA.DOCI 2 All 20 units count toward production. 3 Only 50% or 77 of these units count toward production. Attachment C Page 10 / --- - ATTACHMENT 5 - FIVE YEAR IMPLEMENTATION PLAN (Health & Safety Code Section 33490) OTAY VALLEY ROAD REDEVELOPMENT PROJECT AREA I. INTRODUCTION AND BACKGROUND A. Introduction The five year implementation plan for the Otay Valley Road Redevelopment Project is adopted to meet the requirements of Section 33490 of the Hea[th and Safety Code. The plan is a flexible policy document and not a limitation on the Agency's activities in this project area over the coming five years. B. Background The Otay Valley Road Redeve[opment Project Area is an urbanized area located in the southeastern corner of the City and comprises 771 + acres. The Otay Landfill (County) occupies approximately 265 acres in the northerly section of the project area. Approximate[y 163 acres along the southerly boundary. are classified as environmentally sensitive wetlands and earmarked for conservation and recreation. Public streets comprise 21 acres. The remaining 322 acres, or 43% of the project area, is zoned for light industrial development. At the time of approval of the redevelopment project, 70 percent of the developable acreage was vacant. Currently, 42 percent of the redevelopment project area represents potential for future economic development opportunities. The redevelopment project was formed in December 1983 in order to eliminate conditions of blight which were impacting industrial development in the area. [n 1983 this area represented the largest resource of under developed urbanized property in the City which could be used for industrial development, thereby improving the City's employment and economic base. Economic forecasts at the time of project adoption projected a five acres per year absorption rate. In actuality, over 80 acres have been developed over the past decade. The Redeve[opment Plan has a duration of 40 years (per AB 1290 and recently adopted Ordinance 2611), until the year 2032. Financia[ limitations have been established as follows; $45 million in taxes which may be divided and allocated to the Agency, or if bonds are issued or reimbursement agreements are entered into with other public agencies and/or private entities, a cumulative total of $115 million, plus any amounts required by reimbursement agreements with affected taxing agencies. The implementation plan is intended to be a flexible policy document to guide Agency activities over the next five years (1995 through 1999), and is not intended to represent a limitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years, however, they are not all of the programs/projects necessary to eliminate blight in the project area. The Redeve[opment Area boundaries are described on the attached map (Exhibit A). ð -37 Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 2 II. BLIGHTING CONDITIONS A. Pre-Plan Conditions The Redeve[opment Plan adopted in 1983 identified the following blighting conditions in the Project Area; 1. Undeveloped, unproductive and underdeveloped properties throughout the Area. 2. Inadequate street and circulation systems to serve potential traffic demand. 3. Inadequate street lighting, lack of curbs and gutters, and poor public improvements and facilities. 4. The need for additional public and private utilities in order to accommodate the development of properties within the Project Area boundaries, including the need for additional flood control, water service, storm drains and sewer facilities, and for the development of fire protection and prevention facilities. 5. The lack of proper utilization of many properties within the Project Area boundaries resulting in development constraints on a number of these properties, thus producing a stagnant and unproductive condition of [and which is otherwise potentially useful and valuable. B. Progress in Eliminating Blighting Conditions Since adoption of the Plan in 1983, the Agency has worked to eliminate certain of these conditions through the following efforts; . Installation of a 10" water line in Otay Valley Road. . Extension of natural gas and electric service along Maxwell Road . Deve[oped plans, financing, and initiated construction for the widening and improvement of Otay Valley Road from [-805 to the Otay River Bridge crossing. This project includes the upgrading and undergrounding of electric and telephone utility lines, and improved water service. It also includes the purchase and rehabilitation of fourteen acres of wetlands (eight have already been purchased). . Reviewed and approved plans, and prepared development agreements for 17 new industrial and 2 commercial projects which have been completed or are currently under construction. . Approved a Deve[opment Agreement for the Chula Vista Auto Mall, Phase I. . Provided Industrial Deve[opment Bond financing for 2 industrial projects. 3 -1ò Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 3 . Eliminated all auto recycling land uses south of Energy Way and enforced the improvement of landscaping and maintenance of properties used for auto recycling on Energy Way. C. Current Conditions Despite the progress that has been made to date, certain blighting conditions remain which will impact future industrial and commercial development in the area. These conditions include; . Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). Several large parcels remain impacted by hazardous soil and groundwater contamination. . . Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those or other portions of the project area. An example of remaining blighting incompatibility is the City's Anima[ Shelter, which is currently located in the middle of a large vacant parcel and is restricting the integrated development of the site. . Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. Traffic circulation inadequacies remain which are impacting development of major industrial/commercial sites. III. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA To further eliminate blighting conditions described above, the following goals and objectives have been established in the Redevelopment Plan; A. Goal The Agency proposes to use the process of redevelopment to eliminate and mitigate the many aspects of existing visual, economic, physical, social, and environmental blight within the Project Area. Within this broad goal, and as an indicator in the evaluation and determination of project priorities, the following specific redevelopment objectives are established by the Agency: B. Objectives 1. The elimination of existing blighted conditions, be they properties or structures, and the prevention of recurring blight in and about the Project Area. J'-'f/ Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 4 2. The development of property within a coordinated land use pattern of commercial, industrial, recreational, and public facilities in the Project Area consistent with the goals, policies. objectives, standards, guidelines and requirements as set forth in the City's and County's adopted General Plan and Zoning Ordinance. 3. The development of public services and facilities including, but not limited to, recreational, maintenance, and operational services and facilities as are necessary and required for the development of the Project Area. 4. The elimination of environmental deficiencies including inadequate street improvements, inadequate utility systems, and inadequate public services; and its potential social, physical, and environmental characteristics of bight. 5. The development of a more efficient and effective circulation corridor system free from hazardous vehicular, pedestrian, an bicycle interfaces. 6. The implementation of techniques to mitigate blight characteristics resulting from exposure to highway and public right-of-way corridor activity and affecting adjacent properties within the Project Area. . 7. Beautification activities to eliminate all forms of blight including, but not limited to, visual blight, in order to encourage community identity. 8. The encouragement, promotion, and assistance in the development and expansion of local commerce and needed commercial and industrial facilities, increasing local employment prosperity, and improving the economic climate within the Project Area, and the various other isolated vacant and/or underdeveloped properties within the Project Area. 9. The acquisition, assemblage, and/or disposition of sites of usable and marketable sizes and shapes for residential, open space, recreational and Project public facility development within the Project Area. 10. The creation of a more cohesive and unified community by strengthening the physical, social, and economic ties between residential, commercial, industrial, and recreational land uses within the community and the Project Area. 11. The acquisition and disposition of property for the purpose of providing relocation housing, as may be required, to implement the objectives of this Plan. 12. To provide for affordable housing availability as required by County, Region, or State law and requirements, as necessary and desirable, consistent with the goals and objectives of the community. 13. To encourage the coordination, cooperation, and assistance of other local agencies, as may be deemed necessary, to ensure that projects undertaken by this Agency are implemented to their fullest and practical extent. <3 -/f.Þ Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 5 14. The achievement of a physical environment reflecting a high level of concern of architectural and urban design principals deemed important by the community. 15. To encourage community involvement and citizen participation in the adoption of policies, programs, and projects so as to ensure that the Redeve[opment Plan is implemented in accordance with the objectives and goals of the General Plan. 16. To provide a procedural and financial mechanism by which the Agency can assist, complement, and coordinate public and private development, redevelopment, revitalization, and enhancement of the community. IV. PROGRAMS. PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS A. Redevelopment Expenditures The preliminary list of Redeve[opment programs and projects provided below represent a list of staff-identified actions that, if implemented, will have a direct positive effect on the elimination of blighting influences in the Project. Inasmuch as the proposed programs need to be evaluated during the course of annual budgetary approval actions, the proposed expenditures have not been fully determined, and in most instances, will be a function of available redevelopment funding. The annual budget approval process will be the framework within which staff-proposed programs will be evaluated and "compete" for funding approval by the Redevelopment Agency Board. Additiona[ programs are needed to completely eliminate blight in the Project Area but the programs described in this section are proposed to be implemented over the next five years. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administrative costs. B. Redevelopment Programs and Projects 1. Complete Improvements to Otay Valley Road Construction on the widening and improvement of Otay Valley Road began in January 1994 and is expected to be completed in 1995. Phase [ and II of this project currently under construction, will widen the roadway to six lane major arterial standards from 1-805 to Nirvana Avenue. East of Nirvana, the roadway will taper to three lanes to the City's easterly boundary. Phase III which remains to be constructed, includes widening of the Otay River bridge crossing which was reconstructed this summer, and widening of approaches to the bridge. Agency and City staff are coordinating design and construction activities, including the upgrading and undergrounding of utilities and improvement of water service. The total cost of Phase I, II and [II of the project is $12, 351,634 and includes an Agency contribution of $1,765,167. Completion of Phase II and Phase II[ will cost $2.3 million. 2. Resolve Soil/Water Contamination Issues Several properties in the Redeve[opment Area are impacted by contaminated groundwater and/or soils. The presence of contaminated water below certain parcels may not, in itself, present a health hazard or preclude development of parcels. However, to the extent such .3 ~f?3 Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 6 conditions, including the presence of contaminated soils, affect the financing of development on undeveloped parcels, contamination could hinder future development in the area. Agency staff will work with affected property owners, county and state regulatory agencies to develop plans and timetables for remediation of contamination problems using available legislative and funding resources. [n addition, staff will work with the property owner of the southwest corner of the Auto Park site towards relocation of the stockpiled contaminated soils. By contractual agreement, this material must be removed no later than August 1997. Removal will require coordination with county and state health officials and county landfill officials. Estimated staff and consulting costs over the next five years is $75,000. 3. Expand Auto Park The Chu[a Vista Auto Park, comprising seventeen acres, was established in 1993. The first two dealerships opened in 1994. In order for this project to be economically viable, additional dealerships must be attracted to the area. The current auto park site can accommodate one additional dealership. However, expansion to the east on the adjacent 23 acres of vacant [and can accommodate an additional four to six dealerships. The City's Anima[ Shelter is located on a 3/4 acre parcel in the center of this property thereby restricting integrated development. Agency staff will work with the property owners and their consultants and City staff in an effort to relocate the Anima[ Shelter and expand the Auto Park. Tota[ staff and consultant costs are estimated at $100,000. An additional $600,000 is estimated to purchase a new site and reconstruct the Anima[ Shelter. 4. Resolve Site Specific Traffic Circulation Issues Impeding Development Development of the twenty acre parcel located at the southeasterly corner of [-805 and Otay Valley Road requires the resolution of traffic circulation issues also impacting two adjacent developed properties, and requires coordinated signalized access to Otay Valley Road. This will require Agency staff coordination and traffic consultant services as well as the installation of traffic signalization. Agency staff and consulting services are estimated to cost $75,000. Traffic signalization is estimated to cost $200,000. 5. Provide Support for the Otay Regional Park The proposed Otay Regiona[ Park will provide active and passive recreational opportunities in conjunction with preservation of natural habitat in the Otay River Valley, a section of which forms the southerly boundary of the project area. Agency staff participate in this mu[ti- jurisdictional planning effort. Deve[opment of the Auto Park infrastructure has provided access to the river valley and public parking. Future efforts will entail the development of park improvements at the southerly end of Brandywine Avenue to serve as a trailhead and the acquisition of an additional six acres of wetland acreage for the park system which will serve as additional mitigation for the Otay Valley Road Widening project. Total cost of park 3 ,- t/ý Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 7 development is estimated at $240,000. The cost of purchase of the additional six acres of wetlands is $120,000, totalling $360,000. V. HOW GOALS. OBJECTIVES. PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have towards the alleviation of blighting influences as cited in the Redeve[opment Plan is described be[ow. The impact of programs is also summarized on the attached matrix (Exhibit B). A. Goals and Objectives The goals and objectives, were specifically developed to alleviate conditions of physical and economic blight which impede development in the project area. The goal established for the project area (in the Redevelopment Plan) specifically references the use of the redevelopment process to eliminate and mitigate all aspects of blight. The objectives specifically address blighting conditions impeding the development of properties in the project area including inadequate traffic circulation systems, lack of public facilities, inadequate utilities and services, and the need to eliminate visual blight due to incompatible uses. The objectives also address issues concerning the proper utilization of properties in this project area including issues caused by the proximity to [-805. The objectives are the coordinated interface between commercial, industrial, industrial and recreation [and uses, and acquisition and assemblage of property for public purposes. B. Programs The program and related expenditures to complete Otay Valley Road carry out this goal by specifically addressing the inadequacy of this two lane facility with no curbs, sidewalks and inefficient lighting to accommodate anticipated development in the area. The program and expenditures to resolve soil and groundwater contamination issues address the condition of undeveloped, underdeveloped and unproductive properties in the project area. The program will address specific problems affecting two major properties in the project area The program to expand the Auto Park also addresses the conditions of inadequate public improvements, public facilities, visual blight characterized by, among other things, an abundance of outdoor storage, and open yard/compound uses, junk yards and other marginal type businesses. Resolution of site specific circulation issues addresses inadequate traffic circulation and the need for infrastructure improvements. Since development of several major properties are currently restricted by inadequate access to Otay Valley Road and [-805, resolution of circulation issues will also address lack of development and proper utilization of properties in the project area. 3 - ðS- Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 8 Development of the Otay Valley Regional Park will address issues related to the under- utilization and unproductive use of properties and valuable resources in the project area. Through conservation efforts, it will also address conditions related to improved flood control in the Otay River Valley. VI. EXPLANATION OF HOW THE GOALS, OBJECTIVES, PROJECTS AND EXPENDITURES Will IMPLEMENT PROJECT HOUSING REQUIREMENTS A. Goals and Objectives California's Community Redeve[opment law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, [ow, and moderate income housing. The law requires that at [east 15 % of all new or rehabilitated dwelling units developed with housing assistance by entities other than the Agency in a Redevelopment Project Area be affordable to [ow and moderate income households, of which 40% must be for, and occupied by, very [ow income households. Additionally, affordable dwelling units shall remain affordable for the longest feasible time (usually 55 years) but no less than the period of land use controls established in the Project plan (40 years as amended pursuant to AB 1290). B. Projects and Expenditures to be Made During the Next Five Years. 1. Annua[ housing production goals have been established Citywide. See Citywide Housing Goals attached as Exhibit C. 2. Estimated number of [ow/moderate income housing units to be destroyed in Years 1-5; . Two - There are currently two low/moderate income rental housing units within the Project Area. These are located on a 23 acre site which is planned for redevelopment by the owner. However, at this time the Agency has no plan to participate in redevelopment of subject site. 3. Rep[acement Housing Site The Redeve[opment Project Area includes two moderate income rental housing units which will eventually be displaced by development of the site. All of the developable land within the project area is zoned for light industrial development. Consequently, there are no housing units contemplated for development within the project area. There are no areas suitable for housing development. [f the housing is displaced as a result of Agency activity, replacement housing will be provided as part of the Citywide [ow/moderate housing program. . For a location of low/moderate housing development sites, see Exhibit C. 3-~ Otay Valley Road Redevelopment Project Area Five Year Implementation Plan Page 9 4. Low/Moderate Housing Fund Expenditure Program - The Otay Valley Road Redevelopment Project redistributes 20% of the tax increments accruing from the Project Area to the Agency's Low/Moderate Income Housing Fund. Estimated deposits and expenditures are included in the Agency's Housing Plan, see Exhibit C, Table 1. 5. Housing Production Plan . See Exhibit C, Section V. 6. Low/Moderate Income Housing Production Resu[ts . See Exhibit C, Section V. VII. CONCLUSION Adoption of the implementation plan shall not constitute an approval of any specific program, project or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the Redevelopment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the initial Implementation Plan for the Otay Valley Road Redeve[opment Project. This plan will be reviewed by the Agency at least once within the five year term of the Plan. The review including a noticed public hearing, will take place no earlier than two years and no later than three years after adoption of this initial Implementation Plan. The Agency will hold a requisite public hearing and adopt a new Implementation Plan every five years from the date of adoption of the Initial Plan The Implementation Plan may be amended by the Agency at any time following a noticed public hearing. ¡C:\WP51 \OVROAD\OVR-PLAN.TXTI .3 -1-7 Clh~ þ~£ blank! 3 -~~ EXHIBIT A -- ----' CD .ç;; ...J ..c: r--- B 1 I ~ I ! ~ ~ . om --- ~ - - - -------- CI VISTA CITY or SAI< DIEGO --- ~,- I I - - I Sheet 1 of 2 City of Chula Vista Otay Valley Road 8m 'i1 ~ Redevelopment Areas . z Redevelopment Area 12/18/90 r I .~ ~ ( ) [: ~ r---------~ .c .. u 1 ... I ~ ! oX!- --- '"", h ~- V1STA \II DIEGO ---....>!'- I I . . I ! Sheet 2 of 2 City of Chula Vista Otay Valley Road ~m Redevelopment Areas Redevelooment Area . 12/18/90 ) OJ ~ >- 'ij . ItI c: 0. ~ o 0'6> ~( ~ oa:," >< >< c. >- 0.. c.( :J= en'; ( ¡jj.~.2 en ( :!: 1ií ( ~~'3¡¡: >< >< >< >< >< ° c. 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Eltl f-oO:C:<I)'O,œ f-O:'Oo.:Jo. .~ ë3 ~ N M <t cD ..:J-SI ~ þa;}£ blank! 3"5';< EXHIBIT C CITY OF CHULA VISTA REDEVELOPMENT PROJECT AREAS HOUSING IMPLEMENTATION PLAN: Bayfront Redevelopment Project Area Town Centre I Redevelopment Project Area Town Centre II Redevelopment Project Area Southwest Redevelopment Project Area Otay Valley Road Redevelopment Project Area I. [NTRODUCTION This housing implementation plan for the Bayfront, Town Centre I, Town Centre II, Southwest, and Otay Valley Road Project Areas has been prepared by Agency staff for the Chu[a Vista Redeve[opment Agency (A¡jency). Pursuant to Section 33413(d), because the Bayfront Redeve[opment Project Area was adopted prior to January 1, 1976, the inclusionary housing provisions of Section 33413 do not apply to the Bayfront Redeve[opment Project. The implementation plan is being prepared and adopted in accordance with the recently enacted AB 129O legislation and addresses the housing production requirements. The key requirements of the legislation that this section of the implementation plan addresses are: . A description of the Agency's specific housing related goals and objectives for the project area, including specific programs, possible projects, and expenditures for the next five years. . A discussion of the Low/Moderate Income Housing Fund including the amount in the Housing Trust Fund, amounts to be deposited in the next five years and anticipated expenditures. . Proposed locations suitable for replacement housing units in instances where plan activities trigger the need for such units. . A description of how these goals, objectives, programs and expenditures will implement the low and moderate income housing set-aside and housing production requirements of the law, including an annual housing program. . A description of how these goals, objectives, programs and expenditures will increase and improve the inventory of [ow and moderate income housing units. [I. HOUS[NG PLAN - CHAS AND HOUS[NG ELEMENT The City of Chu[a Vista has adopted a Comprehensive Housing Affordabi[ity Strategy (CHAS) per the requirements for communities receiving funds from the U.S. Department of Housing and Urban Deve[opment (HUD). The CHAS, which was adopted for the period January 1, 1994 to December 30, 1999, includes; . Identification of the existing and projected housing needs and establishment of goals, policies, objectives and programs for the preservation, improvement and development of housing to meet the needs of all economic sectors of the community. . Description of the resources (human and financial), markets and strategies intended to meet the housing needs of the community. . Investment decision-making guides for elected officials, program administrators, community organizations and banks, housing developers and concerned citizens. Attachment C Page 1 .3 -53 . Long-term (Five Year Strategy) and short term (Annual Plan) guides which describe the general priorities, plans and allocation of federal, state, local and private resources and funds. The CHAS provides the City with estimates of current and future housing needs. Specific activities intended to provide assistance to the community were identified in the CHAS including goals, policies and program objectives to address the current and future need. The policies, goals and objectives for both the City's Five Year Strategy and One Year Action Plans are predicated on both the CHAS and the Chu[a Vista Housing E[ement. The Housing Element, adopted March 3, 1992 as part of the Genera[ Plan, contains an in-depth evaluation of the demographic, economical and social characteristics of the City along with projections and trends impacting housing and community needs. The broad goals established as part of the Housing E[ement are; . To promote and ensure the provision of adequate housing for all persons regardless of income, age, race, sex, marital status, ethnic background or other arbitrary factors. . To promote and ensure the provision of housing selection by location, type, price and tenure. . To promote and ensure the development of a balanced residential environment with access to employment opportunities, community facilities and adequate services. Taking these goals and Chula Vista's specific needs into consideration, the Housing E[ement describes all of the housing-related programs being implemented in Chu[a Vista, including; residential rehabilitation activities, new construction of affordable units, housing assistance programs for the aged and disabled, assistance programs for owners and renters, and fair housing and affirmative marketing. The City of Chu[a Vista, in cooperation with the City's Housing Authority and the Chula Vista Redeve[opment Agency, implements and administers the various housing programs developed through the CHAS and the Housing E[ement to address housing needs. Househo[d Income Leve[s The CHAS identifies categories of community members needing assistance and establishes priorities based upon the findings compiled during the data gathering phase of the strategy development. The specific income groups being targeted are very low income, [ow income and moderate income households, which are defined by using the San Diego County median income level as the basis. The County median is determined annually, and is adjusted for household size. Based on the 1994 median income of $45,400 for San Diego County (assuming a 4 person household), the income groups are as follows: Income Leve[ Percent of Median 4 Person HH Income Very [ow 0% to 50% $0-$22,700 Low 51% to 80% $22,700-$36,320 Moderate 81 % to 120% $36,321-$54,480 Specific activities intended to provide housing assistance to target income groups were identified in the CHAS and given priority rankings. Attachment C j~sr Page 2 Housinq Needs The unmet housing need in Chula Vista is quantified in the Housing E[ement based on the Regiona[ Housing Needs Assessment prepared by the San Diego Association of Governments (SANDAG). These numbers indicate the following housing need by income group as of 1991; Income Level Housinq Needs as of 1 991 Housinq needs as of 1994 Very [ow 1232 1125 Low 628 610 Moderate 131 131 However, these calculations don't take into consideration the 107 very [ow income and 18 [ow income housing units that have been developed through financial assistance of the Agency. Taking these figures into account, the current housing needs for the five year plan are as shown above to the right. III. HOUSING FUND (TWENTY PERCENT SET AS[DE) REQU[REMENTS As part of the Agency's efforts to meet its unmet housing needs, tax increment housing set aside funds have been and will continue to be used to create affordable housing units. The estimated amount of tax increment housing set-aside available for fiscal years 1994-95 through 1998-99 for the combined project areas is $5,964,051. Tab[e 1 on page following estimates the yearly tax increment by project area. The total revenues to be deposited over the five year period are estimated at $5.9 million. The beginning balance in the low and moderate income housing fund as of Ju[y 1, 1 994 was $1,704,436. Thus, $7,668,358 in funds are projected to be available over the five year projection period. Allocation of Funds to Proqrams The Allocation of these funds are presented in Table 2. Based on existing programs and pro forma cost projections for new and rehabilitated units, up to 175 additional units could be created over the five year period. Funds are allocated among newly constructed and rehabilitated units as follows: 150 new housing units; and 25 rehabilitated housing units. [V. EXCESS/SURPLUS As defined in California Hea[th and Safety Code Section 33334. i 2(g)( 1), an agency has an excess/surplus at any time that unexpended and unencumbered monies in the Agency's [ow and moderate income housing fund exceed the greater of $1.0 million or the total funds deposited in the [ow and moderate income housing fund over the preceding four fiscal years. For the purposes of complying with the current mandate, the Agency must determine whether an excess/surplus existed as of July 1, 1994. This is determined by comparing the unencumbered balance of the [ow and moderate income housing fund as of Ju[y 1, 1994, to the sum of the property tax increment housing set-aside deposited into the fund between fiscal years 1989-90 through 1992-93. [f the amount of unencumbered funds in the account exceeds the sum of the deposits, the Agency has an excess/surplus. Attachment C Page 3 3-55 Tab[e 1 Low/Mod Housing Expenditure Program - Citywide Section 33490(a)(2) Prepared October 1 994 Low and Moderate Income Housing Fund 1994,95 1995-96 1996-97 1997-98 1998-99 Starting Balance $1,704,436 0 0 0 0 Total Annual Deposits a. 20% TI deposits by project area: a1. BF/TCI $634,663 $738,845 $747,561 $756,451 $765,520 a2. OTVR $151,440 $169,177 $174,479 $179,479 $184,863 a3. TCII' $0 $0 $0 $0 $0 a4. SW $70,744 $116,287 $141,275 $167,387 $194,674 b. Interest + other income $189,100 $110,088 $74,432 $77,232 $80,153 Total Revenue $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be spent or committed 1994-95 1995-96 1996-97 1997-98 1998-99 annually a. To pay debt service on bonds used for 0 0 0 0 0 affordable housing b. For affordable housing projects' $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be transferred to housing authority 0 0 0 0 0 or another public entity Funds to be accrued for specific projects 0 0 0 0 0 , Deferment or Credit for FY 93-94 and subsequent years for the 20% Set-aside is currently under consideration. , Includes administrative costs. Attachment C Page 4 .3-S7p Tab[e 2 Annual Housing Unit Production - Citywide Prepared October, 1994 Five Year on 1995 1996 1997 1998 1999 Total Housing Units to be developed 30 30 30 30 30 150 Housing Units to be substantially rehabilitated 5 5 5 5 5 25 Total housing units to be price restricted (acquisition of price restriction covenants 35 35 35 35 35 175 for existing housing) Housing Units to be otherwise assisted by the Agency (non- 45 45 45 45 45 restricted)3 Housing units to be destroyed as result of 0 2 0 0 63 redevelopment' The Chu[a Vista Redeve[opment Agency deposited $2,792,234.00 to the [ow and moderate income housing fund between fiscal years 1989-90 and 1992-93. Comparatively, the unencumbered balance of the [ow and moderate income housing fund was $1,704,436.00 as of Ju[y 1, 1994. Thus, no excess/surplus currently exists. The annual plans included in this five year implementation plan call for the entire available balance in the low and moderate income housing fund to be expended annually. Thus, it is not anticipated that the Agency will experience excess/surplus at any time point during the five year planning period. 3 These units include housing units to receive minor rehabilitation through Agency assistance. The majority of the units are mobi[ehomes. 'These units will be discussed later in the report. They are units the Agency plans to displace in the next five years due to redevelopment projects. Attachment C Page 5 .3 -s-? V. REPLACEMENT AND [NClUSIONARY REQU[REMENTS Section 3341 3(a) of the California Health and Safety Code requires that whenever units housing persons of [ow and moderate incomes are destroyed or removed from the [ow and moderate income housing market as part of a redevelopment project, the Agency shall within four years of the destruction or removal, rehabilitate, develop or construct for rental or sale, to persons of [ow and moderate income, an equal number of replacement units. At [east 75% of these replacement units must be made available at an affordable housing cost for the same income level as the household that was displaced. The Agency incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. This figure excludes units displaced in the Agency's Bayfront Redeve[opment Project Area which was adopted July 16, 1974 and is not subject to the replacement housing requirement. Of the 157 units displaced, 104 were very low income trailers (one bedroom), 27 units were [ow income (one bedroom) and 26 units were low income (two bedroom). The replacement units must meet the following minimum income standards: Unit Tvpe Income level Number of units 1 bedroom very [ow 78 1 bedroom low 20 1 bedroom low or moderate ~ Tota[ 131 Unit Tvpe Income level Number of units 2 bedroom very [ow 0 2 bedroom low 20 2 bedroom low or moderate --2 Tota[ 26 The above units were replaced with the following 184 very low and [ow income housing units built with Agency participation on a Citywide basis. These projects are the following; Proiect Number of units bv bedroom Town Centre Manor 59 (58 one bedroom and 1 two bedroom) Dorothy Street 22 (22 three bedrooms) Silvercrest 75 (74 one bedroom and 1 two bedroom) Civic Center Barrio 28 (6 one bedroom, 13 two bedroom and 9 three bedroom) The projects listed above contain 166 very low income and 18 [ow income housing units. These units fulfill the Agency's replacement obligation for the 157 housing units displaced in the past. Moreover, a surplus of very low and [ow income housing units was constructed beyond the requirement that 75% of the units removed after September 1, 1989 be replaced with units having an equal or greater number of bedrooms and be available at an affordable housing cost for the same income level as the household that was displaced. Attachment C Page 6 ,3'51 -- Proiected HousinQ Diso[acement and Deve[ooment Activities [n the next five years, there exists the possibility of 65 additional units being displaced due to potential redevelopment activity as follows; Proiect Area Number of Units disolaced Town Centre [ None Town Centre II 48 low income mobi[ehomes & 15 [ow income apts Southwest None Otay Valley Road 2 [ow income sinQ[e fami[v homes TOTAL 65 [ow income units The above 65 housing units add an additional development obligation of 65 [ow income housing units by the Agency. Reo[acement Sites The following is a breakdown of possible housing replacement sites and housing developments in project areas for the next five years. Town Centre [ . The Windmill Farms site is zoned Central Commercial/R-3 High Density Residential. 2.65 acres. No housing development is expected on this site in the next five years. Town Centre II . The Sweetwater Union High School District headquarter is planned to be relocated within the next 3-4 years. The current site is in zoned R1-P, [ow density housing, comprising 7.93 acres and can accommodate 18 housing units under this zoning. This housing should be affordable to moderate income persons and could be developed in the next five years. Southwest . Possible sites for future housing development may be located within the Woodlawn Park, Broderick's Otay Acres and southwestern Dorothy Street communities. However, no housing development is planned at this time to be developed in the next five years. Otav Vallev Road . All [and in project area is zoned for light industrial development. There are no suitable housing sites within the project area. 'The Agency is not currently planning any activity which would result in the loss of these units. Attachment C Page 7 ..;>-j;J Affordable Housina Production ( nclusionarv) Reauirements Section 33413(b) (1) and (2) of the California Health and Safety Code imposes inclusionary requirements on all housing units built in Redeve[opment Project Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after January 1, 1976, the following restrictions apply; 1. At [east 30% of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons of [ow and moderate income. Not less than 50% of those units (15 % of the total) must be available to very [ow income persons. 2. For units developed by other public or private entities, at least 15% of the units must be affordable to [ow and moderate income persons; not less than 40% of these units must be made affordable to very [ow income persons. Affordable units created outside of the project areas may be counted toward this requirement on a 2 for 1 basis. [n other words, if the Agency develops two affordable housing units outside of a project area, only one of the two housing units can be counted toward overall Agency production. Within the City of Chu[a Vista, all of the project areas are subject to the housing production requirements excluding the Bayfront Project Area which was adopted Ju[y 16, 1974. These requirements must be met every ten years in the aggregate, but are planned for on a five year basis. Past Housina Deve[ooment Activities A total of 344 housing units have been built in all the project areas by entities other than the Agency generating an inclusionary housing requirement for 21 very [ow income units and 31 [ow or moderate income units. The breakdown of the 344 housing units by project area is as follows; Tota[ 15% of Required Completed Required Completed Proiect Area Units Total Low/Mod Low/Mod Verv Low Verv Low Town Centre I 235 35 21 71 14 0 Town Centre II 104 16 10 0 6 0 Otay Valley Rd 0 0 0 0 0 0 Southwest .2 --.l ~ .-1 .-1 ~ TOTAL 344 52 31 72 21 0 Between 1980 and 1990, the Agency provided financial assistance to 72 [ow and moderate income units and no very [ow income units. Thus, at present the Agency has a surplus of 41 low and moderate income units and an obligation for the development of 21 very low income units. Attachment C pç¡ge 8 ..5-(.Ò Aaencv Assisted Housina for Next Five Years For all the redevelopment areas in the City, it is estimated that 18 moderate income units of housing should be developed in next five years. This project was referred to above in the Town Centre II replacement site selection. These units have the following affect to the Agency's current deficit housing situation in Town Centre II; Low/Mod Income Verv Low Income Existing Deficit in Town Centre II 10 6 Impact of TCII Housing (18 units'); ~ ---1 New Deficit in Town Centre I[ 12 7 As shown below, the 18 moderate income units when constructed in the next five years will create an additional surplus of 16 [ow and moderate income units for the Agency and an obligation for the development of one additional very [ow income unit. Tota[ 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre [ 235 35 21 71 14 0 Twn Centre II 104 16 12 18 7 0 Oty Valley Rd 0 0 0 0 0 0 Southwest .2 ---1 ~ -1 -1 ~ TOTAL 344 52 33 90 22 0 Thus, the Agency will have a surplus of 57 low and moderate income units and an obligation for the development of 22 very low income units. Aaencv Assisted/Price Restricted Housina Based on [ow/mod housing funds available, it is anticipated that 175 units will be developed or substantially rehabilitated over the next five years. Of these, it is estimated that 50 will , Section 33413 states that 15% of the 18 TC II units must be affordable to [ow and moderate income and that 40% of the [ow/mod units must be affordable to very low income. [n this case, 18 X 15% = 3 [ow/mod units. (3 X 60% = 2 [ow/mod units) (3 X 40% = 1 very [ow income unit) Attachment C Page 9 3 -(¡, I be developed/rehabilitated within the redevelopment project areas. The following inc[usionary housing surplus should exist after five years; Low/Mod Income Very Low Income New Surplus/Deficit 57 (22) Plus; 175 Agency Income Restricted Units Produced: Within Project Area (20 units @ 1:1 rati02) 10 10 Outside Project Area (155 units @ 2: 1 rati03) 50 22 (Less) [nclusionary Requirement . (20 X .1 5 = 3 units) (2) (1) (Less) 65 displaced [ow income units (65) TOTAL SURPLUS .2Q J!. VI. LINKAGE OF HOUS[NG SET AS[DE FUND EXPEND[TURES W[TH NEED The City of Chu[a Vista, through the development of CHAS and Housing E[ement of the Genera[ Plan, has determined that there is a need to provide and encourage the development of very [ow, [ow and moderate income housing throughout major portions of the City. The planned use of the Housing Funds in the Project Areas will be undertaken in accordance with these policy documents, and will continue to be expended to fulfill these established goals and objectives. The use of these funds will directly increase and improve the supply of affordable housing within the City of Chu[a Vista. IBM\OISK#\HSGROA.DOCI 2 All 20 units count toward production. 3 Only 50% or 77 of these units count toward production. Attachment C Page 10 3 -' (p )... ATTACHMENT 6 FIVE YEAR IMPLEMENTATION PLAN SOUTHWEST REDEVELOPMENT PROJECT AREA I. INTRODUCTION AND BACKGROUND A. Introduction The Five Year Implementation Plan for the Southwest Redeve[opment Project Area has been prepared to meet the requirements of California Hea[th and Safety Code Section 33490. This statute requires Agencies to prepare and adopt "imp[ementation plans" every five years that contain, among other things, the following: A. Goa[s and objectives B. Planned projects and expenditures C. Exp[anation of nexus between Agency activities and the elimination of blight D. Exp[anation of nexus between Agency activities and meeting State housing requirements The implementation plan is intended to be a flexible policy document to guide Agency activities over the next five years (1995 through 1999), and is not intended to represent a [imitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years, however, they are not all of the programs/projects necessary to eliminate blight in the project area. B. Background The Southwest Redeve[opment Project Area is located in the southwestern corner of the City and comprises approximately 1,050 acres of commercial and industrial properties generally located along the south Interstate 5 ([-5), Broadway Avenue, south Third Avenue, and Main Street corridors. The Southwest Project Area ("project Area") was adopted in November 1990, by City Council Ordinance # 2420 ("Ordinance"). The Redeve[opment Plan ("P[an") for the Project Area is based upon the Preliminary Plan formulated and adopted by the Chu[a Vista Planning Commission on May 23, 1990, and by the Chu[a Vista Redeve[opment Agency on June 14, 1990. The Project Area was created in order to 1) eliminate conditions of blight which negatively impact industrial and commercial development and 2) to implement the Montgomery Specific Plan ("MSP"). 1. Plan Limits Financial limitations have been established as follows: a. Annual tax increment revenue limit of $15.0 million adjusted annually pursuant to the Consumer Price Index (CP[) for San Diego County. This annual revenue limit excludes 1) payments to taxing agencies to alleviate financial burden made by the Agency pursuant to Section 33401 of the Redevelopment Law and Section 510 of the Plan, and 2) any funds required by Section 33334.2 of the Redeve[opment Law and Section 534 of this Plan to be deposited by the Agency in a Low and Moderate Income Housing Fund. The current 1994 annual tax increment limit is $16.3 million. b. Bonded indebtedness limit of $150.0 million, adjusted annually pursuant to the CPI for San Diego County, that the Agency may have outstanding at anyone time. The current 1994 bonded indebtedness limit is $163.3 million. .3 - r:,.3 .- Southwest Redevelopment Project Area Page 2 Five Year Implementation Plan Time limitations on the effectiveness of the Redevelopment Plan were originally established as follows: c. Thirty (30) years, or to 2020, to incur debt. d. Forty (40) years, or to 2030, for duration of plan. e. No [imitation on the receipt of tax increment revenue. Subsequent to the adoption of the Plan, mandatory plan authority time limits were established by the adoption of "AB 1290" [HSC Section 33333.6 (a)] by the California State Legislature. As a result, the Plan required: 1) an amendment to reduce the time [imitation to incur debt from 30 years to 20 years ("c" above) and 2) an amendment to establish a fifty (50) year [imitation, to 2040, for the receipt of tax increment revenue ("e" above). These amendments to the Plan were adopted by City Council ordinance on November 2, 1994. Eminent domain authority limits were established as follows: f. Except with the consent of the owner, residential dwelling units shall not be acquired through the use of eminent domain when the dwelling units are being used for such purposes within [and use designations or zoning classifications designated for such purposes under the adopted Specific and Genera[ Plans of the City of Chula Vista, or as hereinafter are amended. g. As otherwise may be provided by law, no eminent domain proceeding to acquire property with the Project shall be commenced after twelve (12) years following the adoption of the ordinance approving and adopting the Plan. This time [imitation may be extended by amendment of the Plan. 2. Montllomerv SDecific Plan Goals The Project Area encompasses a significant portion of the non-residential portion of the "Montgomery" community which was annexed from the County of San Diego in the December, 1985. Prior to incorporation, this area had been subject to years of governmental neglect and [ower development standards than nearby properties located within the Chu[a Vista city limits. This was primarily due to the practice of the County Genera[ Plan to be administered from a "regiona[" perspective in lieu of a more local and specific "community" perspective. Throughout 1988, "parts" of the MSP were adopted by the City Council in order to help facilitate the transition from San Diego County authority to the City of Chu[a vista authority. Prior to the adoption of the MSP, (and to a much lesser degree after adoption), implementation of the City's Genera[ Plan has primarily consisted of administration of the City's County Zoning Plan, subdivision ordinances and general development design criteria. The Project Area was established to, among many other things, implement the MSP. The MSP was is obviously more detailed than the Genera[ Plan, but also included several significant "Study Areas" which require additional planning in the future. The planning of these "Study Areas" ("Faivre Street" and "West Fairfield") represent a project goal over the next five years. By virtue of the interrelated nature of the MSP and the Redevelopment Plan, the proposed goals, objectives, programs and projects will help further the goals of the MSP. 3-6 f -. Southwest Redevelopment Project Area Page 3 Five Year Implementation Plan II. BLIGHTING CONDITIONS A. Pre-Plan Conditions As provided in the Ordinance and the MSP, the conditions of blight include but are not limited to the following; 1. Inadequate public improvements, public facilities, open spaces, storm water drainage facilities, and utilities. 2. Subdivision and sale of lots of irregular form and shape. Many of the lots are of an inadequate size and lack sufficient access thereto or off-street parking therefore to permit proper usefulness and marketability. 3. Lack of adequate community facilities. 4. Deteriorated or dilapidated commercial. industrial, and residential buildings. 5. Mixed commercial and residential land-uses which are defective in design and/or physical character. 6. Visual blight characterized by, among other things, an abundance of outdoor storage and open yard/compound uses, junk yards and other marginal type businesses. 7. Insufficient or incomplete local planning characterized by several "Specia[ Study" areas that have not been converted from County to City [and-use and zoning designations. B. Progress Made to Eliminate Conditions Since the Project Area has only been in existence since December 1990, it's difficult to quantify the progress made since that time (4 years) to eliminate blighting influences. This is not to suggest however, that the Agency has not been active in the first three years of the project. The following provides a general list of Agency activities since January 1991; 1. Successful completion of Phase [ of the "Pa[omar Trolley Center" commercial redevelopment project which included the following actions: a. Execution of an "Expanded Plan Agreement," then "Semi-Exclusive Negotiation Agreement," and then a "Disposition and Development Agreement". b. Genera[ Plan Amendment and Rezone for portions of the property to allow for commercial development. c. Funded the Environmenta[ Impact Report for the project. .3 -~ ~ -- Southwest Redevelopment Project Area Page 4 Five Year Implementation Plan d. Appraised all properties and acquired five properties through eminent domain for disposition to developer and relocated displacees. e. Financially participated in excess costs of acquisition and off-site improvements and protected developer from market slide damages on acquired properties. The "Trolley Center" represented a significant positive Agency action to eliminate blighting influences in and around the project site such as: 1) incompatible land-uses, 2) un-marketable and development impeded properties, 3) inadequate roadway access and 4) under-utilized marginally productive [and. 2. Successful acquisition and relocation of two automobile dealerships, (who were struggling financially in inferior facilities and destined to [eave the City), to new locations in the Redeve[opment Agency assisted Chula Vista Auto Park project in the Otay Valley Road Redeve[opment Project Area. 3. Successful completion and execution of five (5) property tax sharing agreements with the following affected taxing districts; 1) County of San Diego, 2) Chu[a Vista Elementary School District, 3) Southwestern Community College District, 4) County Office of Education, and 5) Sweetwater Union High School District. 4. Secured the services, through a Request for Proposals (RFP) process, of a Redevelopment, P[anningand Economic Consultant team to prepare an Economic Feasibility, Zoning and Land-Use Study for portions of the Project. The "Study Areas" include the Main Street and South Third Avenue corridors. The completion and adoption of the "Southwest Study" represents a project goal for the next five years. 5. Initiation of engineering design work for the "Main Street Widening Project". 6. Participated in the preliminary planning of the Otay Valley Regiona[ Park, a portion of which is to interface and provide a southern boundary of the Project Area. C. Existing Blight Conditions As stated previously, the Plan has only been in existence for four (4) years (since December 1990) and therefore, although some positive actions have been taken by the Agency, the same types of blighting influences remain in the Project Area. Specifically, the same issues related to inadequate infrastructure, community facilities, non- marketable properties, deteriorated buildings, visual and economic blight still readily exist. As will be presented in Section [V, this Implementation Plan sets forth preliminary programs and projects that will have a positive effect on reducing the existing blighting influences and stopping the spread of additional blight in the Project Area. The first program/project listed, completion of an economic feasibility and zoning study will be the initial vehicle through which policy decisions will be made with respect to pursuing specific programs and projects. 3 -" ~ ._. -- Southwest Redevelopment Project Area Page 5 Five Year Implementation Plan III. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA A. Redevelopment Goals and Objectives The Plan and Ordinance collectively identify the following Redeve[opment purposes and goals, among others; 1. The development of property with coordinated [and use consistent with the goals, policies, objectives, standards, guidelines, and requirements as set forth in the City's adopted General Plan. 2. E[imination and prevention of the spread of blight, and to conserve, rehabilitate, and redevelop the project area in accordance with the Redeve[opment Plan and future Annua[ Work Programs. 3. Elimination of environmental deficiencies including inadequate street improvements, utility systems, public services; and the potential social, physical, and environmental characteristics of blight. 4. Beautification activities to eliminate all forms of blight, including but not limited to visual blight, in order to encourage community identity. 5. Improving the general economic climate and condition through the stimulation of private sector investment in the full development of the Project Area. 6. When necessary, the acquisition, assemblage, and/or disposition of sites of usable and marketable sizes and shapes for commercial, industrial, recreational, and public facility development. 7. Encouragement of tourism, including the development of high quality hotels, motels, restaurants and meeting facilities. 8. Provision for the enhancement and renovation of businesses within the Project Area to promote their economic viability. 9. Provision of needed improvements to the community's education, cultural, residential and other community facilities to better serve the Project Area. 10. Promotion of public improvement facilities which are sensitive to the unique environmental qualities of the Project Area. 11. Removal of impediments to [and assembly and development through acquisition and re- parce[ization of [and into reasonably sized and shaped parcels served by an improved street system and improved public facilities. 3 -~ 7 -- Southwest Redevelopment Project Area Page 6 Five Year Implementation Plan 12. Alleviation of certain environmental deficiencies including substandard vehicular and pedestrian circulation systems, insufficient off-street parking and other similar public improvements. 13. Encouragement of cooperation and participation of property and business owners in the revitalization of the Project. Additionally, the Plan identifies the following proposed Agency redevelopment actions; 14. The acquisition, installation, construction, reconstruction, redesign, or reuse of streets, utilities, traffic control devices, flood control facilities and other public improvements. 15. The rehabilitation, remodeling, demolition or removal of buildings, structures and improvements. 16. Providing the opportunity for participation by owners and tenants and the extension of preferences to occupants desiring to remain or relocate within the redeveloped Project. 17. The development or redevelopment of [and by private enterprise or public agencies for purposes and uses consistent with the objectives of the Plan. 18. The acquisition of real property by purchase, gift, devise or any other [awful means, or, where it is deemed necessary, by exercising the power of eminent domain as permitted by Section 503 of the Plan. 19. The combining of parcels, properties, site preparation, and construction of necessary off- site improvements. 20. Assisting in providing financing for the construction of commercial and industrial buildings to increase the property tax valuation of the Project. 21. The disposition of property including the [ease or sale of [and at the value determined by the Agency for reuse in accordance with the Plan. 22. The closure or vacation of certain streets and the dedication of other areas for public purposes. IV. REDEVELOPMENT PROGRAMS/PROJECTS AND EXPENDITURES - 5 YEAR PLAN A. Redevelopment Expenditures The preliminary list of Redeve[opment programs and projects provided below represent a list of staff identified actions that, if implemented, will have a direct positive effect on the elimination of blighting influences in the Project. Inasmuch as the proposed programs need :3 -"g- -. Southwest Redevelopment Project Area Page 7 Five Year Implementation Plan to be evaluated during the course of annual budgetary approval actions, the proposed expenditures have not been fully determined, and in most instances, will be a function of available redevelopment funding. The annual budget approval process will be the framework within which staff proposed programs will be evaluated and "compete" for funding approval by the Redevelopment Agency Board. Therefore, the costs provided below are preliminary estimates of general Agency "operations" costs such as staff time, outside consultants and attorneys, and small expenditures such as planning studies, financial feasibility studies, and environmental assessments etc. The cost estimates do not include any funds that may be used to "assist" or "participate" financially in the project, or funds that may be used to initiate the proposed "[oan" programs. The funding for the "Main Street Widening" project (#4) is to be used from TRANSNET funds. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administative costs. B. Redevelopment Programs and Projects 1. Complete and adopt the "Economic, Land Use and Zoning Study", and the recommendations thereof, for the South Third Avenue and Main Street corridors. Adoption of the study is to include a "short-term" and "[ong-term" economic development strategy. Projected Agency Cost; $ 80,000 Implement select recommendations from the completed Southwest Study as approved by the Agency Board and as is reasonably achievable given the financial constraints of the Project Area. The preliminary "Draft" recommendations include the following; 2. Encourage redevelopment ofthe "Nelson/Sloan" and "Fenton" properties in coordination with Otay Valley Regiona[ Park planning. Projected Agency Cost: $ 200,000 3. Eva[uate the feasibility of providing financial participation to facilitate parcel consolidation involving properties generally along the north side of Main Street and along S. Third Avenue in order to facilitate the creation of marketable properties and expanded development potential. Emphasis should be placed on the encouragement of owner participation. Projected Agency Cost; $ 200,000 4. Establish a business retention/relocation program that could be designed to facilitate the expansion and relocation, if necessary, of desirable existing businesses that otherwise may be forced to leave the City in order to economically afford a expansion. Projected Agency Cost: $ 100,000 3-tç7 -- Southwest Redevelopment Project Area Page 8 Five Year Implementation Plan 5. Establish an industrial/commercial property rehabilitation loan and/or grant program to provide financial incentives to improve the physical integrity and appearance of businesses in the Project Area. Projected Agency Cost: $ 100.000 6. Initiate and complete. as is financially achievable. the final City planning designations (General Plan and Zoning) for the "West Fairfield" and "Faivre Street" Study Areas to complete the planning transition from County to City authority. Projected Agency Cost: $ 150.000 7. a. Complete the engineering design plans for the "Main Street Widening" project b. Concurrently. as applicable. aggressively pursue the right-of-way acquisition necessary to construct the road widening. Projected Agency Cost: $0 8. Redevelop the vacant South Bay Chevrolet and Fuller Ford sites on Broadway Avenue. (Auto dealerships have been relocated to the Chu[a Vista Auto Park in the Otay Valley Road Project Area). Projected Agency Cost; $ 200.000 9. Complete Phase [I of the Palomar Trolley Center. Projected Agency Cost; $ 50.000 10. Encourage and help facilitate if necessary. the development of the vacant "Price Company" property located immediately west of the existing Price Club store at Broadway and Oxford. Projected Agency Cost: $ 50.000 11. Actively participate and encourage the planning. including planning the boundaries. of the portion of the Otay Valley Regiona[ Park that interfaces with the Project Area to include active. multi-use recreational activity uses therein where feasible. Projected Agency Cost; $ 200.000 TOTAL PROJECTED COSTS: $1.330.000 V. HOW GOALS AND OBJECTIVES. PROGRAMS. PROJECTS AND EXPENDITURES WILL ELIMINATE BLIGHT Each of the above described programs and related expenditures will further the stated goals of the Plan to reduce existing blighting influences and prevent the continual spread of blight 3-7Ù - Southwest Redevelopment Project Area Page 9 Five Year Implementation Plan in the Project Area. Table 1, following, is a matrix which identifies how each of the eleven (11) general programs and projects positively effect each of the seven (7) general blighting conditions that currently exist in the Project Area. Tabla 1 Agency Programs Inadaquate Non-Marketable Inadequate Deteriorated Incompatible Visual Blight Insufficient Infrastructure Properties Community Structures Mixed-Uses Planning Facilities Complete X X X Southwest Study Encourage X X X X X X X redevelopment of Fenton and Ne[sonlSloan properties Facilitate parcel X X X X X consolidation along Main St. & Third Ave. if feasible Establish business X X X expansion/retention Establish business X X X rehabilitation Complete local X X X X planning of Special Study Areas Complete Eng. & X X X Design. Main St. Widening Pursue RDW X X X acquisition' Main Street Widening Redevelop Auto X X X Dealership sites Complete Phase II X X X X Palomar Trolley Center Encourage X X X development of Price Co. property Dtay Valley X X X X X X Regional Park Planning 3-1/ Southwest Redevelopment Project Area Page 10 Five Year Implementation Plan VI. GOALS AND OBJECTIVES - HOUSING California's Community Redeve[opment Law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, low, and moderate income housing. The law requires that at [east 15% of all new or rehabilitated dwelling units developed with housing assistance by entities other than the Agency in a Redeve[opment Project Area be affordable to [ow and moderate income households, of which 40% must be for, and occupied by, very low income households. Additionally, affordable dwelling units shall remain affordable for the longest feasible time (usually 55 years) but no less than the period of [and use controls established in the Project plan (40 years). Attached as Exhibit 1, is the required Housing Implementation Plan which addresses the key requirements of "AB 1290". The Housing Plan is comprehensive and incorporates relative housing programs and expenditures for each of the Agency's five project areas. As the Housing Plan indicates, that the City's housing programs and expenditures are comprehensive, aggressive and directly increase and improve the supply of [ow- and moderate-income housing units. A. Housing Goals and Objectives The Plan identifies the following housing goals, among others: 1. Encouragement of cooperation and participation of residents in the revitalization of the Project. 2. Establishment of a program which promotes the rehabilitation of the existing housing stock. 3. Provision of [ow and moderate income housing as required to satisfy the needs of various age and income groups of the community, maximizing the opportunity for individual choice, and meeting the requirements of State law. 4. Encouragement of the establishment and maintenance of "ba[anced neighborhoods" characterized by a planned diversity in building sites, density, housing, and land use. Additionally, the Plan identifies the following housing actions; 5. The rehabilitation, development or construction of affordable housing in compliance with State law. 6. Providing the opportunity for participation by owners and tenants and the extension of preferences to occupants desiring to remain or relocate within the redeveloped Project. 7. Providing relocation assistance to displaced residential and non-residential occupants. 3 -1 -:L Southwest Redevelopment Project Area Page 11 Five Year Implementation Plan 8. Assisting in providing financing for the construction of residential units to increase the residential property tax valuation of the Project. 9. Provide for the retention of controls, and the establishment of restrictions or covenants running with the land, so that property will continue to be used in accordance with the Plan. 10. The acquisition and disposition of property for the purpose of providing relocation housing, as may be required, to implement the objectives of the Plan. B. Housing Activities As provided in more detail in Exhibit 1, it's estimated that no (zero) housing units will be displaced over the next five years as part of redevelopment activities in the Project Area. Additionally, no housing development is currently planned to be developed over the same period. Neverthe[ess, should the need arise, replacement housing sites may be located in the "Wood[awn Park", "Broderick's Otay Acres", and southwestern "Dorothy Street" communities. Finally, it is estimated that an annual production of approximately 80 housing units are estimated to be developed and/or "assisted" in some manner throughout the City over the next five years. Therefore, it is reasonable to anticipate that some portion (a[though undetermined) of the total production of 400 units will be located within the Project Area. VII. CONCLUSION Adoption of this Five Year Implementation Plan shall not constitute an approval of any specific program, project or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the Redeve[opment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the initial Implementation Plan for the Southwest Redeve[opment Project. This plan will be reviewed by the Agency at [east once within the five year term of the Plan, and will take place at a Public Hearing no earlier than two years and no later than three years after adoption of this initiallmp[ementation Plan. The Agency will hold a requisite Public Hearing and adopt a new Implementation Plan every five years from the date of adoption of the Initial Plan. The Implementation Plan may be amended by the Agency at any time following a noticed Public Hearing. c ,\ wp51 \haynes\document\swplan95 .doc 3-13 ~ þ~E. Clank! 3-11 EXHIBIT A <"" - - - - - - :: g ~ - - .~ Sheet 1 of 5 City of Chula Vista Southwest RedeveloPl1lent 2m ':I õ . z Redevelopment Areas Project Area 12/18/90 - - -- -. -. "" -- c m - ( ) c:: ::¡ !L-.í5 : -, ,-- : L_. (I r-------.: : ~ I i. : I '- CoTY 01' '- ~~ ...- I --- '- I "- I '- / Sheet 2 of 5 City of Chula Vista Southwest RedA\lAI~pment ,m Redevelopment Areas Project Area f' - 12/18/90 EXHIBIT A ~ . - -~ --- Q) "" - c: ~ .!: - U - - <0 :2: ,- City of Chura Vista Southwest Reclp.vp.lopment ~m Redevelopment Areas Project Area 7 -'olio/an , T~--~ , , ~ ' , , (]) c: - , -! , - £ '~ /- /// êã --- / ::ï: _/----, ------- 'HEY ¡£ ~ /III " II rRtfmE33:HB Sheet 4 of 5 City of Chura Vista So~thwest RedeveloDment Jrn Redevelopment Areas Prolect Area f" - ,""0'00 ! ~h_~ .;: : è'--~ ! ~ : City of Chula Vista Southwest Redevelopment gm ':! ~ . z Redevelopment Areas Project Area 1 1211"190 fJh~ þWJE- blank! "3-fÐ EXHIBIT B CITY OF CHULA VISTA REDEVELOPMENT PROJECT AREAS HOUSING IMPLEMENTATION PLAN: Bayfront Redevelopment Project Area Town Centre I Redevelopment Project Area Town Centre II Redevelopment Project Area Southwest Redevelopment Project Area Otay Valley Road Redevelopment Project Area I. [NTRODUCTION This housing implementation plan for the Bayfront, Town Centre [, Town Centre 1[, Southwest, and Otay Valley Road Project Areas has been prepared by Agency staff for the Chu[a Vista Redevelopment Agency (Agency). Pursuant to Section 33413(d), because the Bayfront Redeve[opment Project Area was adopted prior to January 1, 1976, the inclusionary housing provisions of Section 33413 do not apply to the Bayfront Redeve[opment Project. The implementation plan is being prepared and adopted in accordance with the recently enacted AB 1290 legislation and addresses the housing production requirements. The key requirements of the legislation that this section of the implementation plan addresses are: . A description of the Agency's specific housing related goals and objectives for the project area, including specific programs, possible projects, and expenditures for the next five years. . A discussion of the Low/Moderate Income Housing Fund including the amount in the Housing Trust Fund, amounts to be deposited in the next five years and anticipated expenditures. . Proposed locations suitable for replacement housing units in instances where plan activities trigger the need for such units. . A description of how these goals, objectives, programs and expenditures will implement the [ow and moderate income housing set-aside and housing production requirements of the law, including an annual housing program. . A description of how these goals, objectives, programs and expenditures will increase and improve the inventory of low and moderate income housing units. [I. HOUS[NG PLAN - CHAS AND HOUS[NG ELEMENT The City of Chu[a Vista has adopted a Comprehensive Housing Affordability Strategy (CHAS) per the requirements for communities receiving funds from the U.S. Department of Housing and Urban Deve[opment (HUD). The CHAS, which was adopted for the period January 1, 1994 to December 30, 1999, includes: . Identification of the existing and projected housing needs and establishment of goals, policies, objectives and programs for the preservation, improvement and development of housing to meet the needs of all economic sectors of the community. . Description of the resources (human and financial), markets and strategies intended to meet the housing needs of the community. . Investment decision-making guides for elected officials, program administrators, community organizations and banks, housing developers and concerned citizens. Attachment B .3 -? I Page 1 . long-term (Five Year Strategy) and short term (Annual Plan) guides which describe the general priorities, plans and allocation of federal, state, local and private resources and funds. The CHAS provides the City with estimates of current and future housing needs. Specific activities intended to provide assistance to the community were identified in the CHAS including goals, policies and program objectives to address the current and future need. The policies, goals and objectives for both the City's Five Year Strategy and One Year Action Plans are predicated on both the CHAS and the Chula Vista Housing Element. The Housing E[ement, adopted March 3, 1992 as part of the General Plan, contains an in-depth evaluation of the demographic, economical and social characteristics of the City along with projections and trends impacting housing and community needs. The broad goals established as part of the Housing E[ement are: . To promote and ensure the provision of adequate housing for all persons regardless of income, age, race, sex, marital status, ethnic background or other arbitrary factors. . To promote and ensure the provision of housing selection by location, type, price and tenure. . To promote and ensure the development of a balanced residential environment with access to employment opportunities, community facilities and adequate services. Taking these goals and Chula Vista's specific needs into consideration, the Housing Element describes all of the housing-related programs being implemented in Chu[a Vista, including: residential rehabilitation activities, new construction of affordable units, housing assistance programs for the aged and disabled, assistance programs for owners and renters, and fair housing and affirmative marketing. The City of Chula Vista, in cooperation with the City's Housing Authority and the Chu[a Vista Redevelopment Agency, implements and administers the various housing programs developed through the CHAS and the Housing Element to address housing needs. Household Income levels The CHAS identifies categories of community members needing assistance and establishes priorities based upon the findings compiled during the data gathering phase of the strategy development. The specific income groups being targeted are very [ow income, [ow income and moderate income households, which are defined by using the San Diego County median income level as the basis. The County median is determined annually, and is adjusted for household size. Based on the 1994 median income of $45,400 for San Diego County (assuming a 4 person household). the income groups are as follows: Income level Percent of Median 4 Person HH Income Very low 0% to 50% $0-$22,700 low 51% to 80% $22,700-$36,320 Moderate 81%t0120% $36,321-$54,480 Specific activities intended to provide housing assistance to target income groups were identified in the CHAS and given priority ran kings. Attachment B 3 ~8 2-- Page 2 Housino Needs The unmet housing need in Chu[a Vista is quantified in the Housing Element based on the Regional Housing Needs Assessment prepared by the San Diego Association of Governments (SANDAG). These numbers indicate the following housing need by income group as of 1991: Income Leve[ Housino Needs as of 1991 Housino needs as of 1 994 Very [ow 1232 1125 Low 628 610 Moderate 131 131 However, these calculations don't take into consideration the 107 very low income and 18 [ow income housing units that have been developed through financial assistance of the Agency. Taking these figures into account, the current housing needs for the five year plan are as shown above to the right. [II. HOUS[NG FUND (TWENTY PERCENT SET ASIDE) REQU[REMENTS As part of the Agency's efforts to meet its unmet housing needs, tax increment housing set aside funds have been and will continue to be used to create affordable housing units. The estimated amount of tax increment housing set-aside available for fiscal years 1994-95 through 1998-99 for the combined project areas is $5,964,051. Tab[e 1 on page following estimates the yearly tax increment by project area. The total revenues to be deposited over the five year period are estimated at $5.9 million. The beginning balance in the [ow and moderate income housing fund as of July 1, 1994 was $1,704,436. Thus, $7,668,358 in funds are projected to be available over the five year projection period. Allocation of Funds to Proorams The Allocation of these funds are presented in Table 2. Based on existing programs and pro forma cost projections for new and rehabilitated units, up to 175 additional units could be created over the five year period. Funds are allocated among newly constructed and rehabilitated units as follows: 150 new housing units; and 25 rehabilitated housing units. IV. EXCESS/SURPLUS As defined in California Health and Safety Code Section 33334.12(g)(1), an agency has an excess/surplus at any time that unexpended and unencumbered monies in the Agency's [ow and moderate income housing fund exceed the greater of $1.0 million or the total funds deposited in the [ow and moderate income housing fund over the preceding four fiscal years. For the purposes of complying with the current mandate, the Agency must determine whether an excess/surplus existed as of Ju[y 1, 1994. This is determined by comparing the unencumbered balance of the low and moderate income housing fund as of Ju[y 1, 1994, to the sum of the property tax increment housing set-aside deposited into the fund between fiscal years 1989-90 through 1992-93. [f the amount of unencumbered funds in the account exceeds the sum of the deposits, the Agency has an excess/surplus. Attachment B Page 3 ..3 - ð.3 Tab[e 1 Low/Mod Housing Expenditure Program - Citywide Section 33490(a)(2) Prepared October 1994 Low and Moderate Income Housing Fund 1994-95 1995-96 1996-97 1997-98 1998-99 Starting Balance $1,704,436 o o ° o Total Annual Deposits a. 20% T[ deposits by project area: a1. BF/TCI $634,663 $738,845 $747,561 $756,451 $765,520 a2. OTVR $151,440 $169,177 $174,479 $179,479 $184,863 a3. TCII' $0 $0 $0 $0 $0 a4. SW $70,744 $116,287 $141,275 $167,387 $194,674 b. Interest + other income $189,100 $110,088 $74,432 $77,232 $80,153 Tota[ Revenue $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be spent or committed 1994-95 1995-96 1996-97 1997-98 1998-99 annually a. To pay debt service on bonds used for o 0 ° ° o affordable housin9 b. For affordable housing projects' $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be transferred to housing authority o o ° ° 0 or another public entity Funds to be accrued for specific projects 0 o ° 0 ° , Deferment or Credit for FY 93-94 and subsequent years for the 20% Set-aside is currently under consideration. , Includes administrative costs. Attachment B Page 4 3 -tt+ Table 2 Annual Housing Unit Production - Citywide Prepared October, 1994 Five Price Restricted , Year Housing Production 1995 1996 1997 1998 1999 Total Housing Units to be developed 30 30 30 30 30 150 Housing Units to be substantially rehabilitated 5 5 5 5 5 25 Total housing units to be price restricted (acquisition of price restriction covenants 35 35 35 35 35 175 for existing housing) Housing Units to be otherwise assisted by the Agency (non- 45 45 45 45 45 restricted)3 Housing units to be destroyed as result of 0 2 0 0 63 redevelopment' The Chu[a Vista Redevelopment Agency deposited $2,792,234.00 to the [ow and moderate income housing fund between fiscal years 1989-90 and 1992-93. Comparatively, the unencumbered balance of the low and moderate income housing fund was $1,704,436.00 as of July 1, 1994. Thus, no excess/surplus currently exists. The annual plans included in this five year implementation plan call for the entire available balance in the [ow and moderate income housing fund to be expended annually. Thus, it is not anticipated that the Agency will experience excess/surplus at any time point during the five year planning period. 3 These units include housing units to receive minor rehabilitation through Agency assistance. The majority of the units are mobilehomes. 'These units will be discussed later in the report. They are units the Agency plans to displace in the next five years due to redevelopment projects. Attachment B Page 5 3-86' V. REPLACEMENT AND INCLUS[ONARY REQUIREMENTS Section 33413(a) of the California Health and Safety Code requires that whenever units housing persons of low and moderate incomes are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, the Agency shall within four years of the destruction or removal, rehabilitate, develop or construct for rental or sale, to persons of low and moderate income, an equal number of replacement units. At least 75% of these replacement units must be made available at an affordable housing cost for the same income level as the household that was displaced. The Agency incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. This figure excludes units displaced in the Agency's Bayfront Redeve[opment Project Area which was adopted Ju[y 16, 1974 and is not subject to the replacement housing requirement. Of the 157 units displaced, 104 were very [ow income trailers (one bedroom), 27 units were low income (one bedroom) and 26 units were low income (two bedroom). The replacement units must meet the following minimum income standards: Unit TvDe Income level Number of units 1 bedroom very [ow 78 1 bedroom low 20 1 bedroom low or moderate ..TI Total 131 Unit TvDe Income level Number of units 2 bedroom very low 0 2 bedroom low 20 2 bedroom low or moderate ...Q Total 26 The above units were replaced with the following 184 very low and low income housing units built with Agency participation on a Citywide basis. These projects are the following: Proiect Number of units bv bedroom Town Centre Manor 59 (58 one bedroom and 1 two bedroom) Dorothy Street 22 (22 three bedrooms) Si[vercrest 75 (74 one bedroom and 1 two bedroom) Civic Center Barrio 28 (6 one bedroom, 13 two bedroom and 9 three bedroom) The projects listed above contain 166 very [ow income and 18 low income housing units. These units fulfill the Agency's replacement obligation for the 157 housing units displaced in the past. Moreover, a surplus of very low and [ow income housing units was constructed beyond the requirement that 75% of the units removed after September 1, 1989 be replaced with units having an equal or greater number of bedrooms and be available at an affordable housing cost for the same income level as the household that was displaced. Attachment B Page 6 .3 -8t;. Proiected Housina DisD[acement and Deve[oDment Activities [n the next five years, there exists the possibility of 65 additional units being displaced due to potential redevelopment activity as follows: Proiect Area Number of Units disolaced Town Centre I None Town Centre II 48 low income mobilehomes & 15 [ow income apts Southwest None Otay Valley Road 2 [ow income sina[e familv homes TOTAL 65 [ow income units The above 65 housing units add an additional development obligation of 65 [ow income housing units by the Agency. Reolacement Sites The following is a breakdown of possible housing replacement sites and housing developments in project areas for the next five years. Town Centre I . The Windmill Farms site is zoned Central Commercia[/R-3 High Density Residential. 2.65 acres. No housing development is expected on this site in the next five years. Town Centre II . The Sweetwater Union High School District headquarter is planned to be relocated within the next 3-4 years. The current site is in zoned R 1-P, [ow density housing, comprising 7.93 acres and can accommodate 18 housing units under this zoning. This housing should be affordable to moderate income persons and could be developed in the next five years. Southwest . Possible sites for future housing development may be located within the Woodlawn Park, Broderick's Otay Acres and southwestern Dorothy Street communities. However, no housing development is planned at this time to be developed in the next five years. Otav Vallev Road . All [and in project area is zoned for light industrial development. There are no suitable housing sites within the project area. 'The Agency is not currently planning any activity which would result in the loss of these units. Attachment B Page 7 3-1('] Affordable Housina Production (Inclusionarv) Reauirements Section 33413(b) (1) and (2) of the California Health and Safety Code imposes inclusionary requirements on all housing units built in Redevelopment Project Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after January 1, 1976, the following restrictions apply: 1. At least 30% of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons of low and moderate income. Not less than 50% of those units (15% of the total) must be available to very [ow income persons. 2. For units developed by other public or private entities, at least 15 % of the units must be affordable to [ow and moderate income persons; not less than 40% of these units must be made affordable to very [ow income persons. Affordable units created outside of the project areas may be counted toward this requirement on a 2 for 1 basis. [n other words, if the Agency develops two affordable housing units outside of a project area, only one of the two housing units can be counted toward overall Agency production. Within the City of Chula Vista, all of the project areas are subject to the housing production requirements excluding the Bayfront Project Area which was adopted Ju[y 16, 1974. These requirements must be met every ten years in the aggregate, but are planned for on a five year basis. Past Housina Develooment Activities A total of 344 housing units have been built in all the project areas by entities other than the Agency generating an inclusionary housing requirement for 21 very low income units and 31 [ow or moderate income units. The breakdown of the 344 housing units by project area is as follows; Total 15% of Required Completed Required Completed Proiect Area Units Total Low/Mod Low/Mod Verv Low Verv Low Town Centre I 235 35 21 71 14 0 Town Centre II 104 16 10 0 6 0 Otay Valley Rd 0 0 0 0 0 0 Southwest ....Q --1 -12 --1 --1 -12 TOTAL 344 52 31 72 21 0 Between 1980 and 1990, the Agency provided financial assistance to 72 [ow and moderate income units and no very low income units. Thus, at present the Agency has a surplus of 41 low and moderate income units and an obligation for the development of 21 very low income units. Attachment B Page 8 3-í?8"" AQencv Assisted HousinQ for Next Five Years For all the redevelopment areas in the City, it is estimated that 18 moderate income units of housing should be developed in next five years. This project was referred to above in the Town Centre II replacement site selection. These units have the following affect to the Agency's current deficit housing situation in Town Centre II; Low/Mod Income Verv Low Income Existing Deficit in Town Centre II 10 6 Impact of TCII Housing (18 units'); --2 --1 New Deficit in Town Centre II 12 7 As shown below, the 18 moderate income units when constructed in the next five years will create an additional surplus of 16 low and moderate income units for the Agency and an obligation for the development of one additional very [ow income unit. Tota[ 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre I 235 35 21 71 14 0 Twn Centre I[ 104 16 12 18 7 0 Oty Valley Rd 0 0 0 0 0 0 Southwest -2. --1 -2 --1 --1 -2 TOTAL 344 52 33 90 22 0 Thus, the Agency will have a surplus of 57 low and moderate income units and an obligation for the development of 22 very low income units. AQencv Assisted/Price Restricted Housing Based on [ow/mod housing funds available, it is anticipated that 175 units will be developed or substantially rehabilitated over the next five years. Of these, it is estimated that 50 will 1 Section 33413 states that 15% of the 18 TC [[ units must be affordable to [ow and moderate income and that 40% of the low/mod units must be affordable to very low income. [n this case, 18 X 15% = 3 low/mod units. (3 X 60% = 2 [ow/mod units) (3 X 40% = 1 very low income unit) Attachment B Page 9 (j ~~:J be developed/rehabilitated within the redevelopment project areas. The following inclusionary housing surplus should exist after five years; Low/Mod Income Very Low Income New Surplus/Deficit 57 (22) Plus: 175 Agency Income Restricted Units Produced: Within Project Area (20 units @ 1; 1 ratio') 10 10 Outside Project Area (155 units @ 2: 1 ratio3) 50 22 (Less) Inclusionary Requirement (20 X .15 = 3 units) (2) (1) (Less) 65 displaced low income units (65) TOTAL SURPLUS 50 J! VI. LINKAGE OF HOUSING SET AS [DE FUND EXPEND[TURES WITH NEED The City of Chula Vista, through the development of CHAS and Housing Element of the Genera[ Plan, has determined that there is a need to provide and encourage the development of very [ow, low and moderate income housing throughout major portions of the City. The planned use of the Housing Funds in the Project Areas will be undertaken in accordance with these policy documents, and will continue to be expended to fulfill these established goals and objectives. The use of these funds will directly increase and improve the supply of affordable housing within the City of Chula Vista. [BM\OISK#\HSGRDA.DOCI , All 20 units count toward production. 3 Only 50% Dr 77 of these units count toward production. Attachment B Page 10 .3 - 9Ò ATTACHMENT 7 FIVE YEAR IMPLEMENTATION PLAN (Health & Safety Code Section 33490) TOWN CENTRE I REDEVELOPMENT PROJECT AREA I. INTRODUCTION AND BACKGROUND A. Introduction The Five year Implementation Plan for the Town Centre Redevelopment Project is adopted to meet the requirements of Section 33490 of the Health and Safety Code. The plan is a flexible policy document and not a [imitation on the Agency activities in this project area over the coming five years. B. Background The redevelopment project area was formed in 1976 in order to eliminate conditions of blight which were impacting the economic and physical viability of the area. The Town Centre Redevelopment Project Area encompasses 138.54 acres and is Chu[a Vista's historic downtown. Third Avenue is the Project Area's central spine. E Street bounds the site in the north and I Street is the Project's southern boundary. The east-west boundaries vary, extending to Fourth Avenue at its farthest point west and to Del Mar Avenue at its farthest point east. The Town Centre is urbanized and developed with a mixture of public and private land uses including the San Diego South County Superior and Municipal Court Complex, Norman Park Senior Center, and Memorial Park as well as a variety of commercial offices, retail and service commercial uses, and residential units. The Redevelopment Plan has a duration of 25 years, until July 2001. ([t is anticipated that. in 1995, the City Council will consider a Redevelopment Plan Amendment to extend the Project by 15 years to the year 2016.) Financial limitations have been established for the project area as follows: The aggregate amount of tax revenues which may be divided and allocated to the Redevelopment Plan for the Town Centre [ Redevelopment Project shall be limited to the amount which would be required in any fiscal year to pay the principal and interest coming due in such fiscal year on loans, advances or indebtedness issued by the Agency in the aggregate principal amount of Twenty Million Dollars ($20,000,000.00), the total actual amount of which principal and interest is $84,000,000.00 (Ordinance No. 2585). For the purpose of clarification, the $20,000,000 amount represents the maximum total principal and interest indebtedness that can be outstanding at anyone time. Further, the $84,000,000 amount represents the total tax increment that can be collected, but its use is not limited to debt service on bonded indebtedness; those funds can be used for such other costs as reasonable operating expenses and affordable housing set-aside obligations. The implementation plan is intended to be a flexible policy document to guide Agency activities over the next five years (1995 through 1999), and is not intended to represent a limitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years, however, they are not all of the programs/projects necessary to eliminate blight in the project area. -3 -91 Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 2 The Town Centre Redeve[opment Project Area boundaries are described on the attached map (Exhibit A). II. Bliahtina Conditions A. Pre-Plan Conditions The Redevelopment Plan identifies the following blighting conditions in the project area; 1. The under-utilization and mixed character of land in and adjacent to the project area; 2. The prevalence of small lots which are inadequate for large scale development and restrict the expansion of existing and compatible uses; 3. The design limitations in the basic layout and platting, the clutter of utility lines and signs, and an inadequate traffic circulation system; 4. The obsolescence, structural inadequacy, lack of architectural unity, and deterioration of buildings within the area; 5. The general decline and shifting nature of commercial activity within the area; 6. The inadequate governmental revenue generation (property and sales tax) and an increasing need for public services within the area; B. Pr?gress in Eliminating Blighting Conditions Since the adoption of the Redevelopment Plan in 1976, the Redeve[opment Agency has worked to eliminate certain of these conditions through the following efforts: . Since the inception of the Town Centre I Project, over $100 million of combined private and public development dollars have been invested within the Town Centre [ Project Area and have contributed toward the area's economic growth and physical improvement. . The Redevelopment Agency has participated in the following major new development projects that have been completed in the Town Centre I area over the past fifteen years. (Participation includes certificates of participation, acquisition and consolidation of properties, financial assistance, expeditious development plan processing etc.); . The Park Plaza consisting of 59,000 sq. ft. commercial center, 98 residential condominiums and 94 rental apartments, a six-plex movie theater, three freestanding restaurants, and a freestanding office building. . The South County Administration Center which houses Municipa[ and Superior courts and associated county offices that serve the South Bay. . Sharp Rees-Stealy medical building. 3 -9 ,;L. Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 3 . The Park Square [[ and the Adma commercial/residential mixed use projects. . Third Avenue public street and sidewalk improvements including landscaping and associated amenities. . Development of new and redevelopment of older public parking lots. . A 700 space public parking structure in the Park Plaza. . The renovation of Memorial Park and the construction of the Norman Park Senior Center. . Preparation of the 1993 Downtown Market Study to analyze the economic potential of the Town Centre Redeve[opment Project. . Various small to medium remodeling and new construction projects completed by the private sector throughout the project area. . Acquisition of 2.4 acres of property at Third Avenue and A[varado Street and .5 acres of property at H Street and Third Avenue. C. Existing Blighting Conditions Despite the Redeve[opment Agency's efforts, certain blighting conditions remain as listed below: . Obsolete and substandard commercial buildings located within the project area. . Inadequate public parking facilities. . Undersized waterlines in areas transitioning from [ow density residential to commercial use. . Small parcel/dysfunctional lot configuration with multi-ownerships hindering consolidation for effective development. . Commercial rental and [ease rates an average of 20% to 25% below Citywide rates. . The average commercial parcel is assessed at a ratio of 35% [and to 65% improvements demonstrating a somewhat underdeveloped commercial density. III. SPECIFIC GOAL AND OBJECTIVES FOR THE PROJECT AREA To further eliminate blighting conditions described above, the following goal and objectives have been established in the Redevelopment Plan: 3 -73 Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 4 A. Goal The goal of the Town Centre Redevelopment Project is to revitalize the Town Centre area as the commercial-civic focus of the City. B. Objectives 1. Eliminate blighting influences, including incompatible and noxious [and uses, obsolete structures and inadequate parking facilities. 2. Eliminate environmental deficiencies including, among others, small and irregular lot and block subdivisions, several poorly planned streets, and economic and social deficiencies. 3. The strengthening of the mercantile posture of Town Centre and the improvement of retail trade therein. 4. The renewal of Town Centre's physical plant and the improvement of its land use patterns and spatial relationships. 5. The retention and expansion of viable [and uses, commercial enterprises, and public facilities within the area. 6. The attraction of capital and new business enterprises to the core area. l. The comprehensive beautification of the area, including its buildings, open space, streetscape, and street furniture. 8. The encouragement of multi-family, middle-income residential units in and near the core area. 9. The possible accommodation of future local and regional mass transit and related facilities; improvement of off-street parking areas and provision for a mini-transit intra- project system. 10. The establishment of Town Centre as the South Bay's principal center for specialty goods and services. 11. The establishment of design standards to assure desirable site design and environmental quality. 12. The reorientation of the people of Chula Vista to their core area, and the resultant promotion of a sense of "towness" (towness is a unique feeling spawned by an emotional relationship between people and their city. This feeling is founded upon a sense of belonging. When the people feel that they belong to their city and that their city belongs to them, a state of towness exists). 3 -1'/ Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 5 IV. PROGRAMS. PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS Major programs proposed over the next five years and estimated total expenditures are described below. Specific projects may be listed under each program. These serve as examples of projects which may be undertaken by the Agency. However. other projects which meet the program requirements may also be pursued. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administrative costs. 1. Redevelopment of Third/Alvarado Site Focus on the redevelopment of 2.4 acres of Redevelopment Agency owned property located at the northeast corner of Third Avenue and Alvarado Street. The Agency purchased several small lots which were underdeveloped with limited mixed uses. These lots are currently vacant and have been consolidated to form a larger parcel which is available for higher intensity commercial development. This action is anticipated to create employment opportunities in the Downtown, to provide a major customer base for vicinity merchants and service providers, and to increase property tax revenues and to create a catalyst in upgrading local rental/lease rates. Staff and consultant costs are estimated at $88,000 over the next five years. An additional amount may be necessary to participate in public infrastructure improvements, studies, and environmental review (estimated $125,000.00). 2. Vicinity of H Street/Third Avenue Consolidation of small parcels and coordination of the redevelopment of under- utilized properties in the vicinity of the South County Municipal and Superior Court Complex. The Agency currently owns approximately .5 acres (4 small lots) of property located at the north west corner of Third Avenue and H Street. It is anticipated that these parcels will be consolidated and cleared for redevelopment with higher intensity land use or uses. In addition, adjacent commercial property owners will be encouraged to participate in the Agency's project and upgrade their property's. There are several small parcels that are located along Third Avenue in the vicinity of H Street that are developed with residential units and have been converted to commercial offices. Redevelopment of these units will be encouraged. Staff time and consultant costs over the next 5 years are estimated at $138,000. 3. Downtown Business Association/Promotions/and Marketing Agency staff will continue to guide and assist the local merchant's association, (Downtown Business Association) DBA, in implementing the Main Street Program 3 ~7J "--- Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 6 concept of managing the commercial downtown area to strengthen and support the economic viability of the Chula Vista Downtown. The Downtown Business Association will endeavor to develop and coordinate major promotional events to attract local residents, to establish an expanded customer base by drawing residents from the subregion, and to recruit viable new businesses to strengthen the Downtown's business climate. The Downtown Business Association organizes and administers promotional events and implements strategies to increase and maintain a healthy customer base, and develops relationships among the business owners. Agency staff will work with the Downtown Business Association for the mutual benefit of the Town Centre redevelopment effort. Staff time, consultants fees and promotional assistance for the next 5 years is estimated at $152,000. 4. Capital Improvements Identification, plan development, and implementation of capital improvements where public facilities, including utility services, are undersized for areas transitioning to more intensive land use development. Currently, a 4" waterline located in Landis Avenue north of F Street is inadequate to provide fire service to future commercial development. [t is anticipated that the 4" waterline will need to be replaced with an 8" waterline to accommodate the area's transition from residential to commercial uses. Staff costs and the construction of the Landis Avenue waterline is estimated at $225,000. 5. Public Parking Facilities Upgrade substandard public parking lots by adding and improving night lighting and installing landscaping to create a safe and inviting environment for Downtown patrons. Additional land may be needed to be acquired to create adequate public parking facilities for the Project Area. The Downtown Parking District is located within the Town Centre Redeve[opment Project Area. Currently, the District includes approximately 1000 public parking spaces. About half of those spaces are located within public parking lots. Several of the existing parking lots (lots 1,3.4,5,6 and 7) are older and have limited lighting and landscaping. It is anticipated that several of the lots will be upgraded within the next five years to improve the business environment of the Downtown commercial area. The cost will most likely be shared by the Parking District and In-lieu Parking funds with assistance or loans from the Redevelopment Agency. Staff time and cost of upgrading parking lots within the next 5 years is estimated at $713,000. 3 -f~ Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 7 6. Joint Public/Private Programs Development of programs such as: 1) demonstration exterior renovation project. 2) Downtown banner project, 3) commercial rehabilitation loan program, 4) encourage the redevelopment of properties such as those located at the corners of E Street! Third Avenue and substandard structures at various locations throughout the project area, and other similar type of projects that will have joint public and private participation which will benefit the Project Area both physically and economically. Costs for these types of activities would vary depending on the extent of the effort and degree of Agency participation. Staff and consultant cost at this time is estimated to be $100.000 with additional costs for project implementation. V. HOW GOAL. OBJECTIVES. PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals. objectives. programs and expenditures will have toward the alleviation of blighting influences as cited in the Redeve[opment Plan is described below. The impact of programs is also summarized on the attached matrix (Exhibit B). A. Goal and Objectives The goal and objectives. were specifically developed to alleviate conditions of physical economic blight which impede development in the Project Area. The goal established for the Project Area (in the Redeve[opment Plan) specifically calls for the revitalization of the project area and the objectives reference the use of the redevelopment process to eliminate and mitigate all aspects of blight. The objectives address blighting conditions impeding the development of properties in the Project Area include incompatible [and uses. inadequate parking facilities, and the elimination of environmental deficiencies. In . addition, the objectives identify the need to strengthen the mercantile posture of the Town Centre and to reorient the residents to their historic town center as well as to attract new business. B. Programs and Expenditures The Redeve[opment of the Third Avenue/Alvarado site and expenditures implement the goal of the project by eliminating environmental deficiencies such as small and underdeveloped lots and eliminating obsolete structures and providing the revitalization of underdeveloped property. The program expenditures related to the vicinity of H Street/Third Avenue will target the elimination of blight. such as obsolete structures and small and limited parcels. Aesthetic improvements will further the comprehensive beatification effort and revitalization of the properties will benefit the economic health of the project area. The Agency's liaison with the Downtown Business Association and staff guidance will continue to promote economic improvement within the Project Area through attraction and 3'7~ -. Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 8 retention of viable businesses. The Agency's support of the DBA and town management activities will assist in strengthening the mercantile posture of the Downtown and will further the establishment of the Downtown as a principal center for specialty goods and services which will increase the areas economic viability and increase its potential to generate property and sales tax. Expenditures planned for capital improvements and parking lot upgrades will eliminate obsolete utilities and inadequate parking facilities. These infrastructure improvements also will work toward the retention and expansion of viable [and uses within the Town Centre. Joint public and private programs will encourage the beautification of the Project Area and will create an improved business climate which will attract new business and will encourage residents to revisit their downtown. VI. EXPLANATION OF HOW THE GOALS. OBJECTIVES. PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS A. Goals and Objectives California's Community Redeve[opment Law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, [ow and moderate income housing. The law requires that at least 15% of all new or rehabilitated dwelling units developed with housing assistance by entities other than the Agency in a Redeve[opment Project Area be affordable to [ow and moderate income households, of which 40% must be for, and occupied by, very low income households. Additionally, affordable dwelling units shall remain affordable for the longest feasible time (usually 55 years) but no less than the period of land use controls established in the Project Plan (currently 25 years, but anticipated to be amended to 40 years). B. Projects and Expenditures to be Made During the Next Five Years 1. Annua[ housing production goals have been established City-wide. See City-wide Housing Goa[s attached as Exhibit C. 2. Estimated number of low/moderate income housing units to be destroyed in Years 1-5: There are over 500 residential units located within the Town Centre Project Area. Approximately 25% of the housing stock includes single family detached dwellings and 75% includes multi-family, apartments and townhouses. For the most part, the single family detached dwellings are of older stock and sit on small lots. Many are currently co-mingled with commercial uses and a number have been converted into commercial structures. The Redevelopment Agency has no plan at this time which would involve the displacement of any residential unit. But, since the Redevelopment Plan allows the conversion of residential units to commercial use, there is the potential for the 3 ~ rf/ Town Centre I Redevelopment Project Area Five Year Implementation Plan Page 9 displacement of low/moderate income families by virtue of the nature of the redevelopment process and the implementation of the Project' goals and objectives through private or public action. 3. Replacement Housing Site Replacement of any displaced residential units through the use of the 20% housing set- aside funds from the Project Area will be in accordance with the Citywide housing policy which is described in Exhibit C. 4. Low/Moderate Housing Fund Expenditure Program The Town Centre Redevelopment Project Area sets aside 20% of the Project Area's tax increment for the Agency's Low/Moderate Income Housing fund. Estimated deposits and expenditures are included in the Agency's Housing Plan (see Exhibit C). 5. A31 5 Housing Production Plan See Exhibit C. 6. Low/Moderate Income Housing Production Results See Exhibit C VII. CONCLUSION Adoption of the Implementation Plan shall not constitute approval of any specific program, project or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or Community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the Redeve[opment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the initial Implementation Plan for the Town Centre Redevelopment Project. This plan will be reviewed by the Agency at least once within the five-year term of the Plan. The review including a noticed public hearing, will take place no earlier than two years and no later than three years after adoption of this initial Implementation Plan. The Agency will hold a requisite public hearing and adopt a new Implementation Plan every five years from the date of adoption of this initial plan. The Implementation Plan may be amended by the Agency at any time following a noticed public hearing. (BB\C:\WP51 \PLANS\TCI-PLAN.TXTI .3 -7'1 -- -- fJId~ þClfJ£ blank! .5 ~/ðd -- ---. EXHIBIT A ~ity of Chura Vista Town !m edevelopment Area Centre' I 12118190 '- C/hü ÞZ9g Clank! .3 . 10 ~ ] '" :c ., E ~.W~ x x x - ~ 0 I:: c.. ~ 'õ c.. ...., 0 "':ß :ä~;g x x x ~ ~.~ LL '" - ¡¡:. ~ E 'ë.~ X X ., 0 u ~ c. .ê 1;0/1 '" '" '" '" E ~ I::.S U) ~ ".ß~ x x E ",:E 0 .¡:: f! e I:: E .:g c.. ~e.:: .. 0 0 c.. G). I- .c.. ~-c ... G) 0... ., G)" _:J ŒI '0 ãi - ~ !:: à:1I: ~~ X X X X !!! -'g Û)" ~ ~~ :I:;2 w Co I- G) .- CJ1a ~] -;~ 0 - :J'- I- ~ I:: II) ... "0 .r; ~-g X X X - ,,:;; ŒI ~> ~ ~« w II: ~ 'g 1::-", ~ õ., : ~ ~ ~ ~~ ~ ~~ ~ _'g3 ~õ Õ "1 a t>_.,[ 5".~ ~I:: .,:¡ .,~.. IE ~.~ :;;,2'g ~:ß~ ¡¡.,g ~:;; ê"¡'¡ zl- ..c:e ..c:~" o.æ¡¡: ~~ ~., .,~.~ ~z °c. 11~g' ïii~~ ",.g "'.¡::¡ ¡;..g: Q.w ¡¡~ ~.,t; ]¡:- .s~ .S.S .::~o z~ .!!-",ìii,( .,5~ ìii~::¡:t'¡::¡~"':ã o~ ESõ~"",'¡::¡õ~ .a.:;;-;¡'~~0/I5. ¡::¡¡j 'gE ;;;8,õg: .!:~g- g.?",~ E~~ I-~> "'¡'¡ e:;;l:::J ..~-g ~§.¡::¡ ~'> E~.g W C., ",-.2" I:::JI:: "-1:: ., "c." ¡¡jO .ß:c -o~~ .ßü';; cò~:2 .Š~ ¡;~::¡ ~w ""o_.,-~.,., o:J.1::ü "'-I:: ¡¡¡II: ~" .,~~..!! 'ë.¡::¡" ~t>~.,] ~I::", ~ .....- "¡::~ 0.,."".- I:: o~","o .,01:: '" Q.W :JI:: ~¡¡.-~ -;;Ò>"'E :ß:2g' ìii~ ¡¡.~.¡¡;::¡ j, ;¡j¡ ~ .~ ~:; ~ ~ :Š ~ 'ff~ ~ ~ g ~:§ ~ ~ ~ ~ ~:;; ~ II:Z ~ I::~ !!~:ßo ".!!.2'~ "'-'S "0 ~~g~ g ~w ." :;)_c..._~occ...",Oo"'C:Jo_"'._- It! W CJ U .. > Z:¿: ~ w> '" e ~ð ¡¡¡,..: N '" <i Lri có ~ ~I- ~ ~ 1 ClhÜ F9 ~ Clank! 3 -/ò¡f EXHIBIT C CITY OF CHULA VISTA REDEVELOPMENT PROJECT AREAS HOUSING IMPLEMENTATION PLAN; Bayfront Redevelopment Project Area Town Centre I Redevelopment Project Area Town Centre II Redevelopment Project Area Southwest Redevelopment Project Area Otay Valley Road Redevelopment Project Area I. INTRODUCT[ON This housing implementation plan for the Bayfront, Town Centre [, Town Centre II, Southwest. and Otay Valley Road Project Areas has been prepared by Agency staff for the Chu[a Vista Redeve[opment Agency (Agency). Pursuant to Section 33413(d), because the Bayfront Redevelopment Project Area was adopted prior to January 1, 1976, the inclusionary housing provisions of Section 33413 do not apply to the Bayfront Redeve[opment Project. The implementation plan is being prepared and adopted in accordance with the recently enacted AB 1290 legislation and addresses the housing production requirements. The key requirements of the legislation that this section of the implementation plan addresses are: . A description of the Agency's specific housing related goals and objectives for the project area, including specific programs, possible projects, and expenditures for the next five years. . A discussion of the Low/Moderate Income Housing Fund including the amount in the Housing Trust Fund, amounts to be deposited in the next five years and anticipated expenditures. . Proposed locations suitable for replacement housing units in instances where plan activities trigger the need for such units. . A description of how these goals, objectives, programs and expenditures will implement the low and moderate income housing set-aside and housing production requirements of the law, including an annual housing program. . A description of how these goals, objectives, programs and expenditures will increase and improve the inventory of [ow and moderate income housing units. [I. HOUS[NG PLAN - CHAS AND HOUSING ELEMENT The City of Chu[a Vista has adopted a Comprehensive Housing Affordabi[ity Strategy (CHAS) per the requirements for communities receiving funds from the U.S. Department of Housing and Urban Deve[opment (HUD). The CHAS, which was adopted for the period January 1, 1994 to December 30, 1999, includes; . Identification of the existing and projected housing needs and establishment of goals, policies, objectives and programs for the preservation, improvement and development of housing to meet the needs of all economic sectors of the community. . Description of the resources (human and financial), markets and strategies intended to meet the housing needs of the community. . Investment decision-making guides for elected officials, program administrators, community organizations and banks, housing developers and concerned citizens. Attachment C 3 - /oS- Page 1 . Long-term (Five Year Strategy) and short term (Annua[ Plan) guides which describe the general priorities, plans and allocation of federal, state, local and private resources and funds. The CHAS provides the City with estimates of current and future housing needs. Specific activities intended to provide assistance to the community were identified in the CHAS including goals, policies and program objectives to address the current and future need. The policies, goals and objectives for both the City's Five Year Strategy and One Year Action Plans are predicated on both the CHAS and the Chula Vista Housing Element. The Housing E[ement, adopted March 3, 1992 as part of the General Plan, contains an in-depth evaluation of the demographic, economical and social characteristics of the City along with projections and trends impacting housing and community needs. The broad goals established as part of the Housing Element are: . To promote and ensure the provision of adequate housing for all persons regardless of income, age, race, sex, marital status, ethnic background or other arbitrary factors. . To promote and ensure the provision of housing selection by location, type, price and tenure. . To promote and ensure the development of a balanced residential environment with access to employment opportunities, community facilities and adequate services. Taking these goals and Chula Vista's specific needs into consideration, the Housing Element describes all of the housing-related programs being implemented in Chula Vista, including: residential rehabilitation activities, new construction of affordable units, housing assistance programs for the aged and disabled, assistance programs for owners and renters, and fair housing and affirmative marketing. The City of Chu[a Vista, in cooperation with the City's Housing Authority and the Chula Vista Redeve[opment Agency, implements and administers the various housing programs developed through the CHAS and the Housing E[ement to address housing needs. Househo[d Income levels The CHAS identifies categories of community members needing assistance and establishes priorities based upon the findings compiled during the data gathering phase of the strategy development. The specific income groups being targeted are very low income, low income and moderate income households, which are defined by using the San Diego County median income level as the basis. The County median is determined annually, and is adjusted for household size. Based on the 1994 median income of $45,400 for San Diego County (assuming a 4 person household), the income groups are as follows; Income Level Percent of Median 4 Person HH Income Very low 0% to 50% $0-$22,700 Low 51% to 80% $22,700-$36,320 Moderate 81 % to 120% $36,321-$54,480 Specific activities intended to provide housing assistance to target income groups were identified in the CHAS and given priority ran kings. Attachment C Page 2 :3 -Ið 6 Housina Needs The unmet housing need in Chula Vista is quantified in the Housing Element based on the Regional Housing Needs Assessment prepared by the San Diego Association of Governments (SANDAG). These numbers indicate the following housing need by income group as of 1991: Income Level Housina Needs as of 1991 Housina needs as of 1994 Very low 1232 1125 Low 628 610 Moderate 131 131 However, these calculations don't take into consideration the 107 very [ow income and 18 low income housing units that have been developed through financial assistance of the Agency. Taking these figures into account, the current housing needs for the five year plan are as shown above to the right. 11[, HOUS[NG FUND (TWENTY PERCENT SET ASIDE) REQUIREMENTS As part of the Agency's efforts to meet its unmet housing needs, tax increment housing set aside funds have been and will continue to be used to create affordable housing units. The estimated amount of tax increment housing set-aside available for fiscal years 1994-95 through 1998-99 for the combined project areas is $5,964,051. Table 1 on page following estimates the yearly tax increment by project area. The total revenues to be deposited over the five year period are estimated at $5.9 million. The beginning balance in the [ow and moderate income housing fund as of Ju[y 1, 1994 was $1,704,436. Thus, $7,668,358 in funds are projected to be available over the five year projection period. Allocation of Funds to Proarams The Allocation of these funds are presented in Table 2. Based on existing programs and pro forma cost projections for new and rehabilitated units, up to 175 additional units could be created over the five year period. Funds are allocated among newly constructed and rehabilitated units as follows; 150 new housing units; and 25 rehabilitated housing units. IV. EXCESS/SURPLUS As defined in California Hea[th and Safety Code Section 33334.12(g)(1), an agency has an excess/surplus at any time that unexpended and unencumbered monies in the Agency's [ow and moderate income housing fund exceed the greater of $1.0 million or the total funds deposited in the [ow and moderate income housing fund over the preceding four fiscal years. For the purposes of complying with the current mandate, the Agency must determine whether an excess/surplus existed as of Ju[y 1, 1994. This is determined by comparing the unencumbered balance of the low and moderate income housing fund as of July 1, 1994, to the sum of the property tax increment housing set-aside deposited into the fund between fiscal years 1 989-90 through 1992-93. [f the amount of unencumbered funds in the account exceeds the sum of the deposits, the Agency has an excess/surplus. Attachment C Page 3 3 -It) 7 Table 1 Low/Mod Housing Expenditure Program - Citywide Section 33490(a)(2) Prepared October 1 994 Low and Moderate Income Housing Fund 1994-95 1995-96 1996-97 1997-98 1998-99 Starting Balance $1,704,436 0 0 0 0 Total Annual Deposits a. 20% T[ deposits by project area: a1. BF/TCI $634,663 $738,845 $747,561 $756,451 $765,520 a2. OTVR $151,440 $169,177 $174,479 $179,479 $184,863 a3. TCII' $0 $0 $0 $0 $0 a4. SW $70,744 $116,287 $141,275 $167,387 $194,674 b. Interest + other income $189,100 $110,088 $74,432 $77,232 $80,153 Total Revenue $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be spent or committed 1994-95 1995-96 1996-97 1997-98 1998-99 annually a. To pay debt service on bonds used for 0 o 0 ° 0 affordable housing b. For affordable housing projects' $2,750,383 $1,134,397 $1,137,747 $1,180,549 $1,225,210 Funds to be transferred to housing authority o 0 0 0 o or another public entity Funds to be accrued for specific projects o 0 0 0 o 1 Deferment or Credit for FY 93-94 and subsequent years for the 20% Set-aside is currently under consideration. , Includes administrative costs. Attachment C Page 4 3 ~/() 5" Table 2 Annual Housing Unit Production - Citywide Prepared October, 1994 Five Price Restricted Year Housing Production 1995 1996 1997 1998 1999 Total Housing Units to be developed 30 30 30 30 30 150 Housing Units to be substantially rehabilitated 5 5 5 5 5 25 Tota[ housing units to be price restricted (acquisition of pricè restriction covenants 35 35 35 35 35 175 for existing housing) Housing Units to be otherwise assisted by the Agency (non- 45 45 45 45 45 restricted)3 Housing units to be destroyed as result of 0 2 0 0 63 redevelopment4 The Chula Vista Redevelopment Agency deposited $2.792,234.00 to the [ow and moderate income housing fund between fiscal years 1989-90 and 1992-93. Comparatively, the unencumbered balance of the low and moderate income housing fund was $1,704,436.00 as of July 1, 1994. Thus, no excess/surplus currently exists. The annual plans included in this five year implementation plan call for the entire available balance in the [ow and moderate income housing fund to be expended annually. Thus, it is not anticipated that the Agency will experience excess/surplus at any time point during the five year planning period. 3 These units include housing units to receive minor rehabilitation through Agency assistance. The majority of the units are mobi[ehomes. 4 These units will be discussed later in the report. They are units the Agency plans to displace in the next five years due to redevelopment projects. Attachment C Page 5 3-1() 7 V. REPLACEMENT AND [NClUSIONARY REQU[REMENTS Section 3341 3(a) of the California Health and Safety Code requires that whenever units housing persons of [ow and moderate incomes are destroyed or removed from the low and moderate income housing market as part of a redevelopment project, the Agency shall within four years of the destruction or removal, rehabilitate, develop or construct for rental or sale, to persons of [ow and moderate income, an equal number of replacement units. At [east 75% of these replacement units must be made available at an affordable housing cost for the same income level as the household that was displaced. The Agency incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. This figure excludes units displaced in the Agency's Bayfront Redeve[opment Project Area which was adopted July 16, 1974 and is not subject to the replacement housing requirement. Of the 157 units displaced, 104 were very [ow income trailers (one bedroom), 27 units were low income (one bedroom) and 26 units were low income (two bedroom). The replacement units must meet the following minimum income standards: Unit TvDe Income level Number of units 1 bedroom very [ow 78 1 bedroom low 20 1 bedroom low or moderate ~ Tota[ 131 Unit TvDe Income level Number of units 2 bedroom very [ow 0 2 bedroom [ow 20 2 bedroom [ow or moderate ~ Total 26 The above units were replaced with the following 184 very [ow and [ow income housing units built with Agency participation on a Citywide basis. These projects are the following; Proiect Number of units bv bedroom Town Centre Manor 59 (58 one bedroom and 1 two bedroom) Dorothy Street 22 (22 three bedrooms) Si[vercrest 75 (74 one bedroom and 1 two bedroom) Civic Center Barrio 28 (6 one bedroom, 13 two bedroom and 9 three bedroom) The projects listed above contain 166 very [ow income and 18 [ow income housing units. These units fulfill the Agency's replacement obligation for the 157 housing units displaced in the past. Moreover, a surplus of very [ow and [ow income housing units was constructed beyond the requirement that 75 % of the units removed after September 1, 1989 be replaced with units having an equal or greater number of bedrooms and be available at an affordable housing cost for the same income level as the household that was displaced. Attachment C Page 6 ~ ~ lit) Proiected Housinq Disp[acement and Deve[opment Activities [n the next five years, there exists the possibility of 65 additional units being displaced due to potential redevelopment activity as follows: Proiect Area Number of Units displaced Town Centre [ None Town Centre [I 48 [ow income mobilehomes & 15 [ow income apts Southwest None Otay Valley Road 2 low income sinq[e family homes TOTAL 65 [ow income units The above 65 housing units add an additional development obligation of 65 [ow income housing units by the Agency. Rep[acement Sites The following is a breakdown of possible housing replacement sites and housing developments in project areas for the next five years. Town Centre [ . The Windmill Farms site is zoned Central Commercia[/R-3 High Density Residential. 2.65 acres. No housing development is expected on this site in the next five years. Town Centre [I . The Sweetwater Union High School District headquarter is planned to be relocated within the next 3-4 years. The current site is in zoned R1-P, [ow density housing, comprising 7.93 acres and can accommodate 18 housing units under this zoning. This housing should be affordable to moderate income persons and could be developed in the next five years. Southwest . Possible sites for future housing development may be located within the Woodlawn Park, Broderick's Otay Acres and southwestern Dorothy Street communities. However, no housing development is planned at this time to be developed in the next five years. Otav Valley Road . All [and in project area is zoned for light industrial development. There are no suitable housing sites within the project area. 'The Agency is not currently planning any activity which would result in the loss of these units. Attachment C P¡¡ge 7 -3 -1/1 Affordab[e Housina Production ([nclusionarv) Reauirements Section 3341 3(b) (1) and (2) of the California Health and Safety Code imposes inclusionary requirements on all housing units built in Redeve[opment Project Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after January 1, 1976, the following restrictions apply; 1. At [east 30% of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons of [ow and moderate income. Not less than 50% of those units (15% of the total) must be available to very low income persons. 2. For units developed by other public or private entities, at least 15 % of the units must be affordable to low and moderate income persons; not less than 40% of these units must be made affordable to very low income persons. Affordab[e units created outside of the project areas may be counted toward this requirement on a 2 for 1 basis. In other words, if the Agency develops two affordable housing units outside of a project area, only one of the two housing units can be counted toward overall Agency production. Within the City of Chu[a Vista, all of the project areas are subject to the housing production requirements excluding the Bayfront Project Area which was adopted Ju[y 16, 1974. These requirements must be met every ten years in the aggregate, but are planned for on a five year basis. Past Housina Deve[opment Activities A total of 344 housing units have been built in all the project areas by entities other than the Agency generating an inclusionary housing requirement for 21 very [ow income units and 31 [ow or moderate income units. The breakdown of the 344 housing units by project area is as follows; Tota[ 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre [ 235 35 21 71 14 0 Town Centre II 104 16 10 0 6 0 Otay Valley Rd 0 0 0 0 0 0 Southwest ~ --.1 ~ ..J. ..J. ~ TOTAL 344 52 31 72 21 0 Between 1980 and 1990, the Agency provided financial assistance to 72 [ow and moderate income units and no very low income units. Thus. at present the Agency has a surplus of 41 low and moderate income units and an obligation for the development of 21 very low income units. . Attachment C Page 8 :i --// Aqencv Assisted Housinq for Next Five Years For all the redevelopment areas in the City, it is estimated that 18 moderate income units of housing should be developed in next five years. This project was referred to above in the Town Centre II replacement site selection. These units have the following affect to the Agency's current deficit housing situation in Town Centre II; Low/Mod Income Verv Low Income Existing Deficit in Town Centre II 10 6 Impact of TCII Housing (18 units'): -2. ---1 New Deficit in Town Centre II 12 7 As shown below, the 18 moderate income units when constructed in the next five years will create an additional surplus of 16 low and moderate income units for the Agency and an obligation for the development of one additional very [ow income unit. Tota[ 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre [ 235 35 21 71 14 0 Twn Centre II 104 16 12 18 7 0 Oty Valley Rd 0 0 0 0 0 0 Southwest ...Q ---1 ~ -1 -1 ~ TOTAL 344 52 33 90 22 0 Thus, the Agency will have a surplus of 57 low and moderate income units and an obligation for the development of 22 very low income units. Aqencv Assisted/Price Restricted Housinq Based on low/mod housing funds available, it is anticipated that 175 units will be developed or substantially rehabilitated over the next five years. Of these, it is estimated that 50 will 1 Section 33413 states that 15% of the 18 TC II units must be affordable to [ow and moderate income and that 40% of the [ow/mod units must be affordable to very low income. [n this case, 18 X 15% = 3 [ow/l11od units. (3 X 60% = 2 low/mod units) (3 X 40% = 1 very [ow income unit) Attachment C Page 9 .3~ 113 be developed/rehabilitated within the redevelopment project areas. The following inclusionary housing surplus should exist after five years: Low/Mod Income Verv Low Income New Surplus/Deficit 57 (22) Plus: 175 Agency Income Restricted Units Produced; Within Project Area (20 units @ 1; 1 rati02) 10 10 Outside Project Area (155 units @ 2: 1 rati03) 50 22 (Less) Inclusionary Requirement (20 X .15 = 3 units) (2) (1) (Less) 65 displaced [ow income units (65) TOTAL SURPLUS ..QQ .Jl VI. LINKAGE OF HOUS[NG SET AS[DE FUND EXPEND[TURES WITH NEED The City of Chu[a Vista, through the development of CHAS and Housing Element of the Genera[ Plan, has determined that there is a need to provide and encourage the deve10pment of very [ow, [ow and moderate income housing throughout major portions of the City. The planned use of the Housing Funds in the Project Areas will be undertaken in accordance with these policy documents, and will continue to be expended to fulfill these established goals and objectives. The use of these funds will directly increase and improve the supply of affordable housing within the City of Chula Vista. IBM\DISK#\HSGRDA.DOCI 2 All 20 units count toward production. 3 Only 50% or 77 of these units count toward production. Attachment C Page 10 3 ~II'I - ATTACHMENT 8 FIVE YEAR IMPLEMENTATION PLAN (Health & Safety Code Section 33490) TOWN CENTRE II REDEVELOPMENT PROJECT AREA I. INTRODUCTION AND BACKGROUND A. Introduction The five year implementation plan for the Town Centre" Redevelopment Project is adopted to meet the requirements of Section 33490 of the Hea[th and Safety Code. The plan is a flexible policy document and not a limitation on the Agency's activities in this project area over the coming five years. B. Background The Town Centre" Redeve[opment Project Area, located in the downtown area of Chula Vista, was adopted by the City Council on August 15, 1978. The original project included the Chula Vista Shopping Center and Sears retail center, and comprised a total of 65.41 acres. The purpose of this project was to unite and renovate these two commercial centers into a contiguous modern and competitive regional shopping center. The Town Centre I[ Redevelopment Plan was amended in May 1987 to incorporate the authority to obtain tax increment revenues in accordance with California Community Redeve[opment Law. This authority was not included in the originally adopted Redevelopment Plan. As part of the negotiations with affected taxing agencies pertaining to the inclusion of tax increment financing, the Agency agreed to amend the project a second time to add additional territory. The second amendment, adopted in June 1988, facilitates various school district projects and promotes redevelopment of blighted land uses in the additional territory. [n total, ten sites totalling 75.7 acres were added to the Project Area by the second amendment. The original duration of the Redeve[opment Plan was 45 years until the year 2032. Pursuant to recent changes in the State law (Health & Safety Code Section 33333.6) the Plan was recently amended by Ordinance 2610 to reduce the duration to 40 years or 2027. Financial limitations have been established as follows; A limit of $42.5 million of taxes which may be divided and allocated to the Agency or, if bonds are issued or reimbursement agreements are entered into with other public agencies and/or private entities, a cumulative total of $100 million plus the amounts included in any reimbursement or other agreements with affected taxing agencies. The implementation plan is intended to be a flexible policy document to guide Agency activities over the next five years (1995 through 1999), and is not intended to represent a [imitation on Agency activities. The programs/projects included in the Implementation Plan are those priority programs anticipated to be implemented during the next five years, however, they are not all of the programs/projects necessary to eliminate blight in the project area. The Redeve[opment Project Area Boundaries are described on the attached map (Exhibit A). .3~//S- Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 2 II. BLIGHTING CONDITIONS A. Pre-Plan Conditions The Redeve[opment Plan identifies the following blighting conditions in the original Project Area. 1. Incompatible [and uses. 2. Obsolete structures. 3. Inadequate parking facilities. 4. Unsightly or unattractive signage and graphics, general lack of design standards. 5. Inadequate [and use and townscape planning which has had a negative impact on businesses and neighboring residential land uses in the Project Area. The 1988 Plan Amendment established the following blighting influences for the expansion area: . The need to recycle under-utilized parcels to accommodate higher and better economic uses improving the financial viability of the community as a whole; . The need to upgrade the general aesthetics of the older commercial enterprises to improve their economic viability and their ability to compete with newer commercial areas both within the City of Chura Vista and adjacent communities; . The need to address street improvements; . The existence of parcels of property that are of irregular form and shape or inadequately sized for property usefulness and development; . The existence of obsolete and/or dilapidated structures; and . The need to promote continued redevelopment of the Downtown Business District. B. Progress in Eliminating Blighting Conditions Since adoption of the Plan in 1978, the Agency has worked to eliminate certain of these conditions through the following efforts: . Provided financial and planning assistance for two expansions of Chula Vista Center Regional Mall, adding over 220,000 square feet of new commercial space including a fourth major department store, parking structure, ten-screen cinema and new mall shops linking the Broadway and Sears stores. . Closed Fifth Avenue between H Street and [ Street to facilitate expansion of Chula Vista Center. 3 -II? Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 3 . Re[ocated the Girls' and Boys' Club (previously located within Chu[a Vista Center) to a new, modern facility several blocks away to continue to serve the western section of the City. . Designated Scripps Memorial Hospita[ as developer for eight acre parcel located at the northeast comer of Fifth Avenue and H Street. The project will include expansion of hospital facilities located on the adjacent parcel and construction of medical offices and parking facilities. . [n conjunction with the Scripps Memoria[ Hospita[ project, successfully relocated youth serving facilities including Rollerskate[and and Fiesta Twin Cinemas to new facilities located near their old sites. . Private development has provided 90 units of moderate priced rental housing in the Project Area. . Purchased property for the expansion of City Hall employee parking. . Negotiations are underway with a major developer for the development of a 32 acre commercial site which is impacted by poor access, wetland encroachment and partially located within a different municipality. C. Current Conditions Despite progress made to date, certain blighting conditions remain which will impact future commercial and residential development. These include; . B[ighted, underdeveloped or vacant contiguous parcels of irregular shape with multiple ownerships which need to be consolidated for redevelopment purposes to provide higher and better economic use of property. . The need for street improvements including the provision of adequate access for development of a major commercial parcel. . Overcrowding conditions at public schools within or adjacent to the Project Area. . Existence of obsolete and/or dilapidated structures. . Incompatibility of the Sweetwater Union School District headquarters with surrounding [ow density residential development. . City Corporation Yard currently an incompatible use and will be relocated to a more suitable site. III. SPECIFIC GOALS AND OBJECTIVES FOR THE PROJECT AREA To address the blighting conditions listed above, the following goals and objectives were established in the Redevelopment Plan (including the amendments). 3 -II? Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 4 A. Project Goal The goal of this redevelopment project is to eliminate existing blighting conditions, revitalize the Town Centre No. II Project Area as the principal regional shopping center of the South Bay, to facilitate various school projects and to promote the redevelopment of property within the Project Area. B. The Objectives of the Plan 1. E[imination of blighting influences, including incompatible [and uses, obsolete structures, inadequate parking facilities, unsightly or unattractive signage and graphics, and inadequate landscape and townscape planning. 2. Elimination of environmental, economic, social, platting, and physical deficiencies. 3. The strengthening of the mercantile posture of Town Centre [I, and the improvement of retail trade therein. 4. The renewal of Town Centre II's physical plant and the improvement of its [and use patterns and spatial relationships. 5. The retention and expansion of viable [and uses, commercial enterprises, and public facilities within the area. 6. The attraction of capital and new business enterprises to the project area. 7. The comprehensive beautification of the area, including its buildings, open space, streetscape, street furniture graphics, and signage. 8. Protection of peripheral residential enjoyment and [and use integrity. g. The accommodation of future local and regional mass transit and related facilities; improvement of off-street parking areas and provision for an improved transit project systems. 10. The establishment of design standards to assure desirable site design and environmental quality. 11. The fostering of cooperation between the Town Centre II Project Area and the Chu[a Vista Town Centre Project Area [ and the protection of the goals, objectives, and economic resurgence of the latter. 12. The continuing promotion of Subarea 1 of the Chu[a Vista Town Centre II Project Area, as the principal center of specialty-goods purveyance in the South Bay Subregion. 3 -(I R Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 5 IV. PROGRAMS. PROJECTS AND EXPENDITURES PROPOSED FOR THE NEXT FIVE YEARS The preliminary list of Redevelopment programs and projects provided below represent a list of staff-identified actions that, if implemented, will have a direct positive effect on the elimination of blighting influences in the Project. Inasmuch as the proposed programs need to be evaluated during the course of annual budgetary approval actions" the proposed expenditures have not been fully determined, and in most instances, will be a function of available redevelopment funding. The annual budget approval process will be the framework within which staff-proposed programs will be evaluated and "compete" for funding approval by the Redeve[opment Agency Board. Additiona[ programs are needed to completely eliminate blight in the Project Area but the programs described in this section are proposed to be implemented over the next five years. The costs described are based upon anticipated tax increment cash flow over the next five years net of debt service and administrative costs. A. Redevelop Major Commercial Sites Work with developers and property owners to consolidate parcels and develop plans for the comprehensive commercial redevelopment of two parcels: the northwest quadrant of Broadway and E Street and the northeast quadrant of [-54 and Nationa[ City Avenue. These two sites are underdeveloped due to irregular shaped parcels, multiple ownerships, poor planning and inappropriate development. Negotiations, planning and the preparation of development agreements are estimated to cost $200,000 for both sites. B. Work With School Districts to Facilitate Expansion and Relocation Needs Agency staff will work with the school district staff towards resolving their facilities' needs including relocation of the Sweetwater Union High School headquarters and the residential redevelopment of their present site; expansion of the Chu[a Vista Middle School (in conjunction with Scripps Hospita[ expansion); and expansion of the Feaster School site. Agency costs for these activities are estimated as follows; Relocation of Sweetwater District office $75,000 Expansion of Feaster School $100,000 Expansion of Chula Vista Midd[e School $25.000 Tota[ $200,000 C. Relocation of City Public Works Yard Site The City Public Works Yard occupies six acres adjacent to the Bayfront San Diego Trol[ey Station. The City is negotiating for a new public works yard site in the eastern section of the City which will be more centrally located as the City grows eastwardly. [n order for the current yard site to be redeveloped, a feasibility analysis will be necessary to determine the highest and best use. Marketing and development of the site for redevelopment will require additional staff and program costs. The cost for this activity is estimated as follows: .3 -1/1 Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 6 Purchase new corporation yard site (non-Agency funds) $2.4 Million Development of New Corporation Yard (non-Agency funds) 20 Million Feasibility study 50,000 Staff expense 50,000 Tota[ Cost; $22.500,000 D. Expand City Hall Parking Lot The Agency recently purchased .5 acres adjacent to the City's employee parking lot for expansion needs. This property contains six dwelling units. All residents have been relocated. The Agency will demolish structures and expand the City parking lot. Total cost is $200,000. V. HOW GOALS, OBJECTIVES, PROGRAMS AND EXPENDITURES WILL ELIMINATE BLIGHT The impact that goals, objectives, programs and expenditures will have toward the alleviation of blighting conditions as cited in the Redeve[opment Plan is summarized below. The impact of the programs is also summarized on the attached matrix (Exhibit B). A. Goals and Objectives The goals and objectives, as discussed in the Redeve[opment Plan, were specifically developed to alleviate blighting conditions in the Project Area. The original project goal was the revitalization of the Project Area (Chu[a Vista Center shopping center) as the principal regional shopping center for the South Bay. This goal was expanded as part of the second Redeve[opment Plan amendment, to include the facilitation of various school district projects and redevelopment of Agency/City facilities within the expanded project area. This will require the alleviation of blighting influences as more specifically addressed by the objectives. The objectives specifically address the elimination of blighting influences including incompatible [and uses, removal of obsolete and dilapidated buildings, and the need for beautification efforts and sign control to improve Project Area aesthetics. The objectives also stress the strengthening of the mercantile character of the Project Area with good townscape planning including sensitivity to the need to protect peripheral residential land uses. B. Programs The program to redevelop major commercial sites will specifically address blighting influences of incompatible [and uses, obsolete structures, irregular parcels, the need to recycle under- utilized parcels for better economic use of property, and the need for street improvements. The program to facilitate school district projects including relocation of the Sweetwater Union High School District offices and expansion of school sites will address blighting influences of incompatible land uses, obsolete structuring, inadequate parking, inadequate land uses and townscape planning. 3-);lc) Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 7 The program to relocate the City's Public Works Yard will provide a six acre parcel in a prime location for major commercial redevelopment. This program will address incompatible land uses (current usage), the need to recycle under-utilized parcels to accommodate higher and better economic use and the need to promote continued redevelopment in the downtown business district. The program to expand City Hall parking addresses inadequate parking facilities. VI. EXPLANATION OF HOW THE GOALS. OBJECTIVES. PROJECTS AND EXPENDITURES WILL IMPLEMENT PROJECT HOUSING REQUIREMENTS A. Goals and Objectives California's Community Redevelopment Law requires that not less than 20% of all tax increment generated by the Project shall be used for the purpose of increasing or improving the community's supply of very low, [ow, and moderate income housing. The law requires that at least 15% of all new or rehabilitated dwelling units developed with housing assistance by entities other than the Agency in a Redevelopment Project Area be affordable to low and moderate income households, of which 40% must be for, and occupied by, very [ow income households. Additionally, affordable dwelling units shall remain affordable for the longest feasible time (usually 55 years) but no less than the period of land use controls established in the Project plan. B. Projects and Expenditures to be Made During the Next Five Years 1. Annua[ housing production goals have been established Citywide. See Citywide Housing Goa[s attached as Exhibit C. 2. Estimated number of [ow/moderate income housing units to be destroyed in years 1-5: . 48 MobiJehome Units . 15 Apartment Units 3. Replacement Housing site . The replacement housing site within the project area is the current location of the Sweetwater Union High School District headquarters. This facility is planned to be relocated within the next 3-4 years. The site is zoned R1-P, low density housing. Comprising 7.93 acres, the site can accommodate 18 housing units under this zoning. For additional replacement housing sites in the City, see Exhibit C. 4. Low/Moderate Housing Fund Expenditure Program . The Town Centre I[ Redevelopment Project redistributes 20% of the tax increments accruing from the Project Area to the Agency's Low/Moderate Income Housing Fund. Estimated deposits and expenditures are included in the Agency's Housing Plan, see Exhibit C. t.3 -/~ / Town Centre II Redevelopment Project Area Five Year Implementation Plan Page 8 5. Housing Production Plan . See Exhibit C, Section V 6. Low/Moderate Income Housing Production Resu[ts . See Exhibit C, Section V VII. CONCLUSION Adoption of the Implementation Plan shall not constitute an approval of any specific program, project or expenditure and does not change the need to obtain any required approval of a specific program, project or expenditure from the Agency or community. The projects described in the Implementation Plan are examples of undertakings which will meet the goals and objectives of the Redeve[opment Project. Other projects which meet program requirements may also be pursued by the Agency. This is the initial Implementation Plan for the Town Centre II Redeve[opment Project. This Plan will be reviewed by the Agency at least once within the five year term of the Plan. The review including a noticed public hearing, will take place no earlier than two years and no later than three years after adoption of this initial Implementation Plan. The Agency will hold a requisite public hearing and adopt a new Implementation Plan every five years from the date of adoption of the Initial Plan. The Implementation Plan may be amended by the Agency at any time following a noticed public hearing. [SS\disk#5\TC2plan.texl .3 -I,;ï~ "' CJ1YOf CHUIA VISTA ","" " .., >0;;;;;::\ .~\ ~ '\ \ '\ \ I \1 II ~~ II > \\ I ~, I - / //"--/ ~/ ... \ \ . h I ,If> ! I " .-1, .----.¡ " \ ¡ .. II- " ,,~"o' AMENDMENT- AREA CITY OF CHULA VISTA REDEVELOPMENT AGENCY oo""ow ",."" GOO., ::'-=--=~~U~~':,Y ~ AMENDMENT AREA E::~ EXISTING PROJECT AREA "".'.'ON, ,..'" a ...0« "'OT. ,"."OT .... MASTER KEY ---- aou.,." SHEET _n --L ~...L -- -- --- -- ..' - .. ~ 8 ~lf? ::-.1-::: J CnYOf CHULA VISIA :EET J I >- <1: >- ~ o <t n "~.oAMENDMENT AREA ---- BOUNDARY -~-- CITY 1I0UHDARY ~XIST. PROolEC1' AltlE. ---- 1I0UNDARY I i-:nrnIill MOSS - ~LlJ~U STREET I- l-i - - - WYKES - DEL-REY - c5 WELTON NICKMAN L -Lll1 I II 1'--,. 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" ~ ~.;;; ~K]-g 'ê' 2'~ ~~.:~ ': g: tí.;¡ ~ '" ãi .ê ¡¡Æ ~ ¡¡ g: c> c. .: ~ Iii ~ 0. -g 10 : .S .5 0 c. õ. .£!:5 .!!!~]~t.§¡¡¡¡; ¡¡¡ ~.¡¡; .!! .!!! c, c. ~ 10 g. ::: I-: ~E :9 'S g- ~ tí .~ ~ ~ !J'! ~Ë ! t 0 ~ õ '; ~ õ t.:J =.!! .!!1 Eõ.;g:;;¡¡;~:;; g ~~ ~ 81Jg¡]g¡-g~g¡ ¡¡; E- ~.5 0 Z .5 Z :;¡ .= Z ~ .. ~ u . u~:é ~ c: >;- c> . ~~ ã "':NM":";_u:i"cri ~ ~~ . ~ 3 -/21 CJh¿~ þ~E- blank! :3 -13tJ EXHIBIT C CITY OF CHULA VISTA REDEVELOPMENT PROJECT AREAS HOUSING IMPLEMENTATION PLAN: Bayfront Redevelopment Project Area Town Centre I Redevelopment Project Area Town Centre II Redevelopment Project Area Southwest Redevelopment Project Area Otay Valley Road Redevelopment Project Area I. [NTRODUCT[ON This housing implementation plan for the Bayfront, Town Centre I, Town Centre II, Southwest, and Otay Valley Road Project Areas has been prepared by Agency staff for the Chula Vista Redevelopment Agency (Agency). Pursuant to Section 33413(d), because the Bayfront Redevelopment Project Area was adopted prior to January 1, 1976, the inclusionary housing provisions of Section 33413 do not apply to the Bayfront Redevelopment Project. The implementation plan is being prepared and adopted in accordance with the recently enacted AB 129O legislation and addresses the housing production requirements. The key requirements of the legislation that this section of the implementation plan addresses are: . A description of the Agency's specific housing related goals and objectives for the project area, including specific programs, possible projects, and expenditures for the next five years. . A discussion of the Low/Moderate Income Housing Fund including the amount in the Housing Trust Fund, amounts to be deposited in the next five years and anticipated expenditures. . Proposed locations suitable for replacement housing units in instances where plan activities trigger the need for such units. . A description of how these goals, objectives, programs and expenditures will implement the [ow and moderate income housing set-aside and housing production requirements of the law, including an annual housing program. . A description of how these goals, objectives, programs and expenditures will increase and improve the inventory of low and moderate income housing units. [I. HOUS[NG PLAN - CHAS AND HOUS[NG ELEMENT The City of Chu[a Vista has adopted a Comprehensive Housing Affordability Strategy (CHAS) per the requirements for communities receiving funds from the U.S. Department of Housing and Urban Deve[opment (HUD). The CHAS, which was adopted for the period January 1, 1994 to December 30, 1999, includes: . Identification of the existing and projected housing needs and establishment of goals, policies, objectives and programs for the preservation, improvement and development of housing to meet the needs of all economic sectors of the community. . Description of the resources (human and financial), markets and strategies intended to meet the housing needs of the community. . Investment decision-making guides for elected officials, program administrators, community organizations and banks, housing developers and concerned citizens. Attachment C Page 1 3 - /3/ --- . Long-term (Five Year Strategy) and short term (Annual Plan) guides which describe the general priorities, plans and allocation of federal, state, local and private resources and funds. The CHAS provides the City with estimates of current and future housing needs. Specific activities intended to provide assistance to the community were identified in the CHAS including goals, policies and program objectives to address the current and future need. The policies, goals and objectives for both the City's Five Year Strategy and One Year Action Plans are predicated on both the CHAS and the Chu[a Vista Housing E[ement. The Housing Element, adopted March 3, 1992 as part of the Genera[ Plan, contains an in-depth evaluation of the demographic, economical and social characteristics of the City along with projections and trends impacting housing and community needs. The broad goals established as part of the Housing Element are; . To promote and ensure the provision of adequate housing for all persons regardless of income, age, race, sex, marital status, ethnic background or other arbitrary factors. . To promote and ensure the provision of housing selection by location, type, price and tenure. . To promote and ensure the development of a balanced residential environment with access to employment opportunities, community facilities and adequate services. Taking these goals and Chu[a Vista's specific needs into consideration, the Housing Element describes all of the housing-related programs being implemented in Chu[a Vista, including: residential rehabilitation activities, new construction of affordable units, housing assistance programs for the aged and disabled, assistance programs for owners and renters, and fair housing and affirmative marketing. The City of Chu[a Vista, in cooperation with the City's Housing Authority and the Chula Vista Redevelopment Agency, implements and administers the various housing programs developed through the CHAS and the Housing Element to address housing needs. Househo[d Income Leve[s The CHAS identifies categories of community members needing assistance and establishes priorities based upon the findings compiled during the data gathering phase of the strategy development. The specific income groups being targeted are very [ow income, [ow income and moderate income households, which are defined by using the San Diego County median income level as the basis. The County median is determined annually, and is adjusted for household size. Based on the 1994 median income of $45,400 for San Diego County (assuming a 4 person household), the income groups are as follows; Income Leve[ Percent of Median 4 Person HH Income Very [ow 0% to 50% $0-$22,700 Low 51% to 80% $22,700-$36,320 Moderate 81%to 120% $36,321-$54,480 Specific activities intended to provide housing assistance to target income groups were identified in the CHAS and given priority rankings. Attachment C Page 2 3 -/3 z.. Housinq Needs The unmet housing need in Chu[a Vista is quantified in the Housing E[ement based on the Regional Housing Needs Assessment prepared by the San Diego Association of Governments (SANDAG). These numbers indicate the following housing need by income group as of 1991: Income Level Housinq Needs as of 1991 Housinq needs as of 1 994 Very low 1232 1125 Low 628 610 Moderate 131 131 However, these calculations don't take into consideration the 107 very low income and 18 low income housing units that have been developed through financial assistance of the Agency. Taking these figures into account, the current housing needs for the five year plan are as shown above to the right. III. HOUS[NG FUND (TWENTY PERCENT SET AS[DE) REQU[REMENTS As part of the Agency's efforts to meet its unmet housing needs, tax increment housing set aside funds have been and will continue to be used to create affordable housing units. The estimated amount of tax increment housing set-aside available for fiscal years 1994-95 through 1998-99 for the combined project areas is $5,964,051. Table 1 on page following estimates the yearly tax increment by project area. The total revenues to be deposited over the five year period are estimated at $5.9 million. The beginning balance in the low and moderate income housing fund as of Ju[y 1, 1994 was $1,704,436. Thus, $7,668,358 in funds are projected to be available over the five year projection period. Allocation of Funds to Proqrams The Allocation of these funds are presented in Tab[e 2. Based on existing programs and pro forma cost projections for new and rehabilitated units, up to 175 additional units could be created over the five year period. Funds are allocated among newly constructed and rehabilitated units as follows; 150 new housing units; and 25 rehabilitated housing units. [V. EXCESS/SURPLUS As defined in California Hea[th and Safety Code Section 33334.12(g)(1), an agency has an excess/surplus at any time that unexpended and unencumbered monies in the Agency's [ow and moderate income housing fund exceed the greater of $1.0 million or the total funds deposited in the low and moderate income housing fund over the preceding four fiscal years. For the purposes of complying with the current mandate, the Agency must determine whether an excess/surplus existed as of Ju[y 1, 1994. This is determined by comparing the unencumbered balance of the low and moderate income housing fund as of July 1, 1994, to the sum of the property tax increment housing set-aside deposited into the fund between fiscal years 1989-90 through 1992-93. If the amount of unencumbered funds in the account exceeds the sum of the deposits, the Agency has an excess/surplus. Attachment C Page 3 3 -/3.3 Table 1 Low/Mod Housing Expenditure Program - Citywide Section 33490(a)(2) Prepared October 1994 Low and Moderate Income Housing Fund 1994-95 1995-96 1996-97 1997-98 1998-99 Starting Balance $1,704,436 0 0 0 0 Tota[ Annua[ Deposits a. 20% TI deposits by project area: a1. BF/TC[ $634,663 $738,845 $747,561 $756,451 $765,520 a2. OTVR $151,440 $169,177 $174,479 $179,479 $184,863 a3. TCII' $0 $0 $0 $0 $0 a4. SW $70,744 $116,287 $141,275 $167,387 $194,674 b. Interest + other income $189,100 $110,088 $74,432 $77,232 $80,153 Tota[ Revenue $2,750,383 $1,134,397 $1,137.747 $1,180,549 $1,225,210 Funds to be spent or committed 1994-95 1995-96 1996-97 1997-98 1998-99 annually a. To pay debt service on bonds used for 0 0 0 0 0 affordable housing b. For affordable housing projects2 $2,750,383 $1,134,397 $1,137.747 $1,180,549 $1,225,210 Funds to be transferred to housing authority 0 0 0 0 0 or another public entity Funds to be accrued for specific projects 0 0 0 0 0 , Deferment or Credit for FY 93-94 and subsequent years for the 20% Set-aside is currently under consideration. 2 Includes administrative costs. Attachment C Page 4 3 -/3 Ý Table 2 Annual Housing Unit Production - Citywide Prepared October, 1994 Five Price Restricted Year Housing Production 1995 1996 1997 1998 1999 Total Housing Units to be developed 30 30 30 30 30 150 Housing Units to be substantially rehabilitated 5 5 5 5 5 25 Total housing units to be price restricted (acquisition of price restriction covenants 35 35 35 35 35 175 for existing housing) Housing Units to be otherwise assisted by the Agency (non- 45 45 45 45 45 restricted)3 Housing units to be destroyed as result of 0 2 0 0 63 redevelopment' The Chula Vista Redevelopment Agency deposited $2,792,234.00 to the [ow and moderate income housing fund between fiscal years 1989-90 and 1992-93. Comparatively, the unencumbered balance of the low and moderate income housing fund was $1.704.436.00 as of Ju[y 1, 1 994. Thus, no excess/surplus currently exists. The annual plans included in this five year implementation plan call for the entire available balance in the [ow and moderate income housing fund to be expended annually. Thus, it is not anticipated that the Agency will experience excess/surplus at any time point during the five year planning period. 3 These units include housing units to receive minor rehabilitation through Agency assistance. The majority of the units are mobilehomes. , These units will be discussed later in the report. They are units the Agency plans to displace in the next five years due to redevelopment projects. Attachment C Page 5 3-13~ V. REPLACEMENT AND INCLUSIONARY REQU[REMENTS Section 33413(a) of the California Hea[th and Safety Code requires that whenever units housing persons of low and moderate incomes are destroyed or removed from the [ow and moderate income housing market as part of a redevelopment project, the Agency shall within four years of the destruction or removal, rehabilitate, develop or construct for rental or sale, to persons of low and moderate income, an equal number of replacement units. At [east 75% of these replacement units must be made available at an affordable housing cost for the same' income level as the household that was displaced. The Agency incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. This figure excludes units displaced in the Agency's Bayfront Redevelopment Project Area which was adopted Ju[y 16, 1974 and is not subject to the replacement housing requirement. Of the 157 units displaced, 104 were very low income trailers (one bedroom), 27 units were [ow income (one bedroom) and 26 units were low income (two bedroom). The replacement units must meet the following minimum income standards: Unit Tvpe Income Leve[ Number of units 1 bedroom very low 78 1 bedroom [ow 20 1 bedroom low or moderate ~ Tota[ 131 Unit Tvpe Income Leve[ Number of units 2 bedroom very low 0 2 bedroom [ow 20 2 bedroom low or moderate -2 Tota[ 26 The above units were replaced with the following 184 very [ow and [ow income housing units built with Agency participation on a Citywide basis. These projects are the following: Proiect Number of units bv bedroom Town Centre Manor 59 (58 one bedroom and 1 two bedroom) Dorothy Street 22 (22 three bedrooms) Si[vercrest 75 (74 one bedroom and 1 two bedroom) Civic Center Barrio 28 (6 one bedroom, 13 two bedroom and 9 three bedroom) The projects listed above contain 166 very [ow income and 18 low income housing units. These units fulfill the Agency's replacement obligation for the 157 housing units displaced in the past. Moreover, a surplus of very low and [ow income housing units was constructed beyond the requirement that 75 % of the units removed after September 1, 1989 be replaced with units having an equal or greater number of bedrooms and be available at an affordable housing cost for the same income level as the household that was displaced. Attachment C Page 6 3-1J~ Proiected Housinq Disp[acement and Development Activities [n the next five years, there exists the possibility of 65 additional units being displaced due to potential redevelopment activity as follows: Proiect Area Number of Units displaced Town Centre [ None Town Centre II 48 low income mobilehomes & 15 low income apts Southwest None Otay Valley Road 2 [ow income sina[e familv homes TOTAL 65 low income units The above 65 housing units add an additional development obligation of 65 low income housing units by the Agency. Replacement Sites The following is a breakdown of possible housing replacement sites and housing developments in project areas for the next five years. Town Centre I . The Windmill Farms site is zoned Central Commercia[/R-3 High Density Residential. 2.65 acres. No housing development is expected on this site in the next five years. Town Centre II . The Sweetwater Union High School District headquarter is planned to be relocated within the next 3-4 years. The current site is in zoned R1-P, [ow density housing, comprising 7.93 acres and can accommodate 18 housing units under this zoning. This housing should be affordable to moderate income persons and could be developed in the next five years. Southwest . Possible sites for future housing development may be located within the Woodlawn Park, Broderick's Otay Acres and southwestern Dorothy Street communities. However, no housing development is planned at this time to be developed in the next five years. Otav Vallev Road . All [and in project area is zoned for light industrial development. There are no suitable housing sites within the project area. 'The Agency is not currently planning any activity which would result in the loss of these units. Attachment C Page 7 3 - 137 Affordab[e Housina Production ([nclusionarv) Reauirements Section 3341 3(b) (1) and (2) of the California Health and Safety Code imposes inclusionary requirements on all housing units built in Redevelopment Project Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after January 1, 1976, the following restrictions apply; 1. At [east 30% of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons of low and moderate income. Not less than 50% of those units (15% of the total) must be available to very [ow income persons. 2. For units developed by other public or private entities, at least 15% of the units must be affordable to [ow and moderate income persons; not less than 40% of these units must be made affordable to very [ow income persons. Affordab[e units created outside of the project areas may be counted toward this requirement on a 2 for 1 basis. [n other words, if the Agency develops two affordable housing units outside of a project area, only one of the two housing units can be counted toward overall Agency production. Within the City of Chu[a Vista, all of the project areas are subject to the housing production requirements excluding the Bayfront Project Area which was adopted Ju[y 16, 1974. These requirements must be met every ten years in the aggregate, but are planned for on a five year basis. Past Housina Deve[ooment Activities A total of 344 housing units have been built in all the project areas by entities other than the Agency generating an inclusionary housing requirement for 21 very [ow income units and 31 low or moderate income units. The breakdown of the 344 housing units by project area is as follows: Total 15% of Required Completed Required Completed Proiect Area Units Total Low/Mod Low/Mod Verv Low Verv Low Town Centre I 235 35 21 71 14 0 Town Centre II 104 16 10 0 6 0 Otay Valley Rd 0 0 0 0 0 0 Southwest .....Q -1 .....Q ...J. ...J. .....Q TOTAL 344 52 31 72 21 0 Between 1980 and 1990, the Agency provided financial assistance to 72 low and moderate income units and no very [ow income units. Thus, at present the Agency has a surplus of 41 low and moderate income units and an obligation for the development of 21 very low income units. Attachment C Page 8 3,/38-' Aqencv Assisted Housinq for Next Five Years For all the redevelopment areas in the City, it is estimated that 18 moderate income units of housing should be developed in next five years. This project was referred to above in the Town Centre I[ replacement site selection. These units have the following affect to the Agency's current deficit housing situation in Town Centre II; Low/Mod Income Verv Low Income Existing Deficit in Town Centre II 10 6 Impact of TCII Housing (18 units'): -2. ---1 New Deficit in Town Centre II 12 7 As shown below, the 18 moderate income units when constructed in the next five years will create an additional surplus of 16 low and moderate income units for the Agency and an obligation for the development of one additional very low income unit. Tota[ 15% of Required Completed Required Completed Proiect Area Units Tota[ Low/Mod Low/Mod Verv Low Verv Low Town Centre [ 235 35 21 71 14 0 Twn Centre II 104 16 12 18 7 0 Oty Valley Rd 0 0 0 0 0 0 Southwest ....Q ---1 ~ ...1 ...1 ~ TOTAL 344 52 33 90 22 0 Thus, the Agency will have a surplus of 57 low and moderate income units and an obligation for the development of 22 very low income units. Aqencv Assisted/Price Restricted Housinq Based on [ow/mod housing funds available, it is anticipated that 175 units will be developed or substantially rehabilitated over the next five years. Of these, it is estimated that 50 will , Section 33413 states that 15% of the 18 TC II units must be affordable to [ow and moderate income and that 40% of the [ow/mod units must be affordable to very [ow income. In this case, 18 X 15% = 3 low/mod units. (3 X 60% = 2 low/mod units) (3 X 40% = 1 very low income unit) Attachment C Page 9 3 -r3~ be developed/rehabilitated within the redevelopment project areas. The following inclusionary housing surplus should exist after five years: Low/Mod Income Very Low Income New Surplus/Deficit 57 (22) Plus: 175 Agency Income Restricted Units Produced: Within Project Area (20 units @ 1: 1 ratio2) 10 10 Outside Project Area (155 units @ 2; 1 ratio3) 50 22 (Less) [nclusionary Requirement (20 X .1 5 = 3 units) (2) (1) (Less) 65 displaced low income units (65) TOTAL SURPLUS ...§.Q J! VI. LINKAGE OF HOUS[NG SET ASIDE FUND EXPENDITURES WITH NEED The City of Chu[a Vista, through the development of CHAS and Housing Element of the Genera[ Plan, has determined that there is a need to provide and encourage the development of very low, [ow and moderate income housing throughout major portions of the City. The planned use of the Housing Funds in the Project Areas will be undertaken in accordance with these policy documents, and will continue to be expended to fulfill these established goals and objectives. The use of these funds will directly increase and improve the supply of affordable housing within the City of Chu[a Vista. IBM\OISK#\HSGRDA.DOC 2 All 20 units count toward production. 3 Only 50% or 77 of these units count toward production. Attachment C Page 10 3 - r4D NOTl~~ßf,~~BlIC ¡~ra'(:'lIa';!~~I~~:;:~'è':,~i:~l Ills h~rabV ordarad Ihal a" may be in pemon or bV your schOOldisllicl. In ralaranca I IM<¡'Í~~~..%~i~~r,Í~~s ~~~ a<;:,n~:u~w~¡;a~~:v. ~a;~~~:~~~'::~~~r~n~;'¡,~i~ all~n~bu ARE A CREDI Sch';;;,r óf'.¥)~I~;'~"o';;~I';;:;;~ ~~r~~~~:u,~~ F~~Ó~~[~}~.r;.:~G 10~~~~~r~~~,:.;'~al~" HaaJth ~i~~~,;;~n~u~a~~rrg~u~':.~ .;p~e"rd"o~~;'~3.a~~~re~~~; ~~~~~:;:?ng~~~ :~~¡g~~':,~i ~10;Ó~n Circla co~~3i~'i:1~W~,!;~1TE :~d o~~"",:,~=:~ ~f~ ~Ëca~~r~~~~~~ :~v,aa~~ ~~l~,:/~a~~It~ I~~e C~;I ~f:"nc~~I~ '.\';,~~~,C:;~~ ~~~ ,a;:(:) ~~'~~~J LAW (HEALTH & SAFETY 1994, and aach five ve..., then and Ihere 'how cau'e, II Sonal represenlative appoin- and FederaJ law, and regula. Andraw Schw CODE 33490) Iharea.er, each redevelop- anVthaVhave,whVlheap~lica. led bV the court within lour '0",.. . . Ava. Ea"Saanlr BAYFRONT manlegency Ihal ha, adoplad lion for change 01 name, ould monlhs "om Ihe dale of f,. No b,dder m1 withdraw hIS The fictitiou, I :rg::~g~l;m,\ ~~=~~~p~r~' ~::;'~n~;. 'O,\'1'.g;~':f,:: Ordarad thaI a issuance oflellem as p~:;- ~~y¿O~h:r~~odal~ s'::~%,t~J ;;,~~rÖ:d ,~~~; OTAYVALLEY ROAD adopl, allar a public haahng copvolth"ORDERTOSHOW "ded 'n. secllon g'00 of the open,ngofbldS.. ber 7 ~94 and SOUTHWEST' an Implamanlallbn Plan thai CAUSE berJ'.ubli'had in Chula Caltl~rnlVrobale Code. The Oalad al Chula VISta. Cali. No. 9417077 NOTfCE IS HEREBY GIVEN :~"o~~:;::~:~Oo¡P~~II~g".';.~ ~i~:n~~:; C,~~ti~;~~~Fs,f:~ ~:r:r ":;~?e CI~::;s ~n~~~ ~".:~'~9~~s3rd day 01 Novem. sIg~;:~ J.~~~~h~1 ::,,¿:ve:'°'pg'h~~: ~';'{=~lt::,~~c~'::;:~d~~~2:..n:;: ';e~;s ~~n'róua,' '~~~c~~~rv: ~~~he heanng dale no "co<! Chula VI"a EI~~~\;;; th:h~~:'~~,;','I'1;; Vista will hold 0 pu~"e haahng posed 10 ba made duhng the weak, p'or 10 the day of the . YOU MAY EXAMINE the SchOoIO"'n" San Diago Coun ~;:~~"'~~e':o~~';:¡~~dt,~~~ ~~~~ '~Ia ,:;:r3;. ~ga~~ :~g'~: he5~'ì!i; OCT 25, 1994 ~~~ ~et:r~¿n '~;e;~~I~d 'I~ ~~~ ~~"--- ~94 m~657 1110 forthe Bavfronl, Town Cen"el, ,a"wes.. pr<>je"s and e'pendl- THOMAS R MURPHY eslale. you may Iile wllh 'he FICTITIOUS BUSINESS -- .- -- ~~~, ;,-.,n~~u~w~~~~:;,:! ~~a~r~~J~,;;:~ale blighl within SU~EUR~~ gßIM~ §o~~ia~ ~~~::;aloreqUe~1 lor N,W JJ:'o~~~4"~T 'j,~~g~~rÖ 10pmanIPro~ecIAreas. The Implamanlatlon Plan C~-~~~ a~lnvenlorv:nd~he ""n~ 0: The name 01 Ihe business: NOTICE ISHE See"on 3 490 of Ihe Health shall. also conlatn. for each of e PP",.a ~ RAF INDUSTRIAL SUPPLY THAT PURSUA' :~d o~a~o~aod~~~~ I~fl :~e ~~u.~sw~~ :~~';j'~~Io~:: N°16ClD~~~W~ON ti:;~a~; :~~~I".::~r~~~~~:~ ~;~I~S~i'ia7'~~..~~S~J~'1;~ ~5'Jj~E2~lOIÅ:¡; '994, and aach five yaar. taW 10 moasu,a performance ESTATE OF seC"on 125001 Ihe Ca"lorma DRO, CA 92173 is hereby ro- SIONSCODE,SI Iheraahar, each radevelop- pu"uanltothelmplom~ntation AGNES FRANCES BUR ~'oba'eCode.AReq.ueSlf~r g"'erad bV Ihe 10"owln9 OF THE CO menl agancy thaI has adopted Plan. The Implementallon plan ' pecoal NOI"e lo'm ,. ava,. owno".. COOE, SECTlO' ~~~~~a~P~~~1 ~~;3~~a~ ~~~~I~~d~~lfs ~:v':;~~"o".'r~~ CASE NUM~~R P163331 lab~~:~~r;:~~~ "R,'ê~'Åfí~ E M:~~I~I¡:W66 t~~'~1 ~.:;:::ro~ ÞE.Ä'¿t ~g5DÃNI adopl. alia' a public haahng haMlalad. pnce-ras"l"ed, To all hells beneficiaries BURRIS Clo 252 Surrey San YSidro.CA 92173 CHULA VISTA :~aJl~~~:::~~J;':i~~~~~ngg,:~ ~~:e~lSeTh:ss:~~.m~nla~fo'~ ~~~:It:~ p~~~~e~~oc~l: Drive, BonltaÁi~~"'~~02Burrls bV~s,~~:~~~~" condu"ad ~~~I~'¡,LL g~ C ¡:,';.th~b~~:::,sa;::a~h:r';'~::;'? ~~:~ :;h~l~n:i;,C~~~g ~na Olh~,wlsebei",ereSledlnlh~ CV04642 (Pelitioner) ba~~~¿~nsaclion 01 business ~~VEMBER21. projeclS and a'pandlturas p"': nual ~apo,,1S in Iho Low and w,1I or eSlale, 0' OOlh, 01 1112,5,2'",4 S,gnalureolragis"ant AUCTION TO ~~;:1v~o,~:r~~~~ ~~~~~I:::: t"u';.~~r~~edu~7;~m~ak7n~s~~ :~'j,'¡¡;N~~~'t~~~SBURRIS FI~l~~o~,.sA~~~'~~¥S Francisco Javiar "o'1'v~r'bw~;; ~~6PE",,'i-?~'b , alion 01 how. the goals an. ob. lund, avarlableannuallv, "an.. A PETITION has been lded FlLENO.941.117 This "ale"",nlwasfiled with FOLLOWS, H' ¡~~~~iil~?,;,o:~I:~~g~:~:¡'1~ ~~~~ho",~~~: ~u~7~~~~~~~ ~e ~';~~~rDc~u~~"cr;;~d,~ EJ~~P't~ ~~!!'LaE~u,~:,s~ ~;~3~~nt/Cle~km~~hsan'1;i~';~ ~.S'~¥ÍJ~ê~S,f, Ih~~~o'e,<;:.~f:~entation Plan ~~I:~;.ual offundslorspecillC nl~~~uWHjW~~ ~~E~~Sls ~\kiig T~~quo"~~~S:sl~ S':N County on OCT 26, \ ifs: 11112 ~"&Lg~\~~~'N shall also contaJn, for each 01 f Ihe Implomentalion Plan Ihat RICHARD E. B~RAIS ragl"e;ad by Iha 101l:'~~V ~ -- '-1I'",~1126 ECRISWELL,A Iha '"avaars, an annual hous. con'a'nsa prOja",halwI" re. be appo,nled as pemonal Owne" g - ESPINOSA,A., ~W P';'O9';'~'::s~;::' ~~~~~~~:. ~~:':;', ~:~I~~~u~g~~ ~~~~~~ ;~~,:~~;'.:a~f~~el~~~n\Sle' ca~:;~~~6~;r,;.f~ ~o L';;"~a FI~l~~O~A~~~'~ijiS ~'(,':Æ:":vJ.~ ~~~~~~~~':':'~r::;:~ne~~~ta~~~ ~::.r;::a~a~~nr~~~cS~åll"I~:~I7ì; Ih~:¡;c:.,;~:;r1¡;'7LL.'eq~~SIS "'~?~~~~~;; Is con"u,,~ Th/~~~~~lg~~O~~~inass 5'o",\Wià;:',"sN, shall Indudo the numbe, 01 proposed loca"on"",tablel", ". S ~n co- by, an Individual JESSE 5 PROOUCE localed HOUSE, D. #38 hou".ng unilS developed. ro. Ih~sa replacemanl. dwelling d":, II ~nv, be admrtled 10 The "ansacti,;n of business at 731 J. So In: SAN DIEGO, ESPARZA. M. > habrl"aled, prlce.re"rl"ed, unilS. . . . p~ . ale. he ~'" and any co. baganon".I.66. CA 92101 "herebV reglSlered OUINTANOR, ( ~:'~"~lseTh:ss:~~.m~n.."ti"o:; hel:ebl'u~; ~"~~~~I~~."n~ ~~';tI~~~n~h:'~~I::.,;~~:;',,",; E~~7:'ð'...:{~:g~~: bV~:~~"'IJ'n.?,'7.:'. 102 S. ~~~'b~¡,o~~ Plan ,shall dascriba Iho Agency on Tuesdoy, Dacom- coun. This"alamontwasliradwith CooIWal",Dr..SanD'ego.CA SMITH,A.>?42 ~e:~~e~~:~n:n '~ho u~b".2 ~d ~~~",1::."a':;til~~Oa~'~9p'~e ~~'t aU;h~;It:~J'~',?,;jnl~~~~e,~: ~~~8~~ntyJi:ta~km~:hsanR8i~~~ by:::~s'n".;1~~~~~ IS conducted f:':;¡~~~g,U Modarale Income Housing haanng will ba held 'n the eStale undo, Ihe Indepen- County on OCT6. 1994. Tha "ansa"'on 01 buSIness C_VCt:'658 Fund, ,ndudlng making the CouncrIChambers,pubhcSer. dent Admlnls"alion of Es- 1115 111t2 baganon:10.24.94. . - lundsavaJlabla annually. Iran.. voces Building, 276 Fourth lales Acj (This aulhorllv will CV04664 111t"11126 SignalUreol reg""an" FICTITIOUS BI ~r;":~lSthe funds for Specl"C ~~:~~a. Chura Vosla. CA ~"ow I.he personal rep. -. . Thi;'::~I~~.~~:~~il~'::~~ "t.~e"JJA9~ 111he Implementa"on Plan Tholmplemantation Plans esentative 10 take '!"Inv ac. NOTjCETO Gre3orv J. Smith Racor. The nama of " c""tains a p,oje" thaI will ro- are avall.able I'" public review lions wlthoUI obla'm~g court YENDORS de" oun~ Clo", of San Oiego JANFER CLEA' suilin 'he doslluellon orramo- allha olllCes ollha Depanmon, app,oval. Before lakong. ""'- CALLING FOR BIDS County on NOV 1,1994. VICES localad al. val 01 dwelling unilS Iha/ will 01 Community Davelopmanl. la,n very Imponant actions, NOTICE ISHEAEBYGIVEN 1115.11112 51. Sullo >A.1 in. have to be raO'acad tho 1m. 263 F'g Avanua. and al tho however, the pemonal rep. Ihal. 'eleclad bid, W,II be CV04675 111t9 11126 CITY. CA 91950 i ~~::,';,~ti,~I:~s'~~::~~?;1~ ~~~~aB'~~~;. n~~~~StL~r~'l; ~~~:~~:¡~:~':'::r':~~~';;'et~ ~~~~:-g~&ath~s~~~~~';':~ FjCTITIOUSBUSIN~SS Z~~~~~d bV Ih< ~~I~e replacament dwelling 01 F S"ael and Fourth Avanuo. ~~7v~ un~~~ o:h~.i'n..:'~~ ~;:'.':f'IOo::¿r~ h~~~~~f~ ~ N~~e" JJ.Ag~~~~T TlgN:L EG~&';~ The public hearing will be ChrIs Salomo,," . 10 the p"_sed aCllon ) The Office of "'reck>< of Bu"ne" Tha name of the business, fomla held bV Ihe Radevelopmenl Community Oevelopmanl 0,. Independent admlnisirafo supran Sarv"es, 84 E. J 51, MANILA GARDEN AESTAU. This business I, ~~~CY,~~ ';~~~~X- ~,:e7'- re"or 1115, 11 It 2 aulho"IV will be granlad ~nn ~~~a ~~stac~~'iW~Íl91g~~ ~:~1:~':J~~:'~~~L't,¡' 9rm' bV+~ '~~:~~~ón Coun," me.ting aI4gp.M. ~h't CV04667 11 It 9194 :~ss an",;nteresled tersor DATA COMMUNICATION CA 9191 "sh",abv «glSterad began on: 11).6.92. g~~~~~ C~~mg:rs~~~bl:g s'::~ ATiORNEY OR PARTY - - I::: ;~d s~;~~ng~~ ~.":;:; mu~n.W~;'.",v~:~~~~~'¡,'I, bYJ~:~o~~~n~~:~n. 355? Edelv~~~~~~~~I; ~';:nu~uil'ð~~ia 2~fSt:oué'J: ~IO~~":;¡':;:;r.~lJ.":,~~¡u ~::rnI:~:a~~':,~iIV~hOUld not ~~~oN:.Ltmba', 18, 1994 ot Ë~mbago Lane, San Oiego, Gr~h'~r~'al~ma£~~ 91910. . ,g11 Locoba"'s!. A PETITION fo, de- Bid, WIII'bUpenad and pu- D"cora Ouenaon. 3557 da,,30un~ Clerk 0 The Implemanla/I"" Plans ~~~r,,:[:'~oiA 92".. le'mina"on 01 0' confirmation bliclV 'oad aJoud al Ihe dale Pumba~o Lane. San Olego, CA County on OCT 6. , are available I", public review U 8 01 propenV passing 10 01 be- and time 'ndlcaled above. Th". u"na" " condu"ad allhe oU'cas ollho Departmonl ~F~~'r,~~~OURT lontng 10 a surviving spouse Each bid shall Ind~de a "" by' Indt"duars . Husband and CV04673 ~b C~~n;:';~~uo~:~o,:a,g~ ~i's"sNL~~~ ~J.t DIEGO ~~d": ;.,~:I~~nl~ 3~~~ba,l~ ~~'::'~~'Pn'::~~, '~~~d~~a':;: W~~.. lIansa"lon 01 business FICTIT'OUS BI. Ch~la Vista Public LIbrary, VfSTÅ CA OSE JOINED wllh Ihe patition 10 turo",Cwhoreapphcable.) baganOn"0'3"94.. NAME STATE Marn Branch. norlheaSt cornar 92093-'6827 admlnlSle' Ihe eSlale Each bid mu" conlo,," and S'gnalUre of 'ag"lrant FILE NO.9" Of~~J',,~=o.:'rth Avenue. IN THE MATTER OF . A HEARING on Ih~rJtltlon ~~~~~~s~Iv~~e~heor'::~i'c~ ftf.n~i:':~~~~~:';~;I;:'::::;' BóB~ ~~~~ ~~Z'; Community Develo 0 D. THE APPLICATION OF, will be held on NOV MBER areonlileandmaVbeoblaJnad Gr"3orv J. Smith Aecor. at: 1660 Broadwa, reclor pmnl" SajohMohomadWarlollll 21,1gg4at: 1:45 P.M. In mlheolllCeoltheDireclorol deriountyClarkOISanOlagO CHULAVISTA,C, Daled:Octobe"81994 Fg~CHANGEOFNAME DEPT.. 35 localed al 220 W. Busoness SuPPOrt Services. Coun~onOCT31,1994. harebvragisleradb CV04632 1115: 12.19194 Fci"'NfN'b'lo°~~~¡:"¡,E ~2~~~wav, SanD,ego, CA &~¥~~~i.::'1,EJ"s~.a&~~la~rs~: CV04670 1~~~~:'~ In'}.~~~~, P Sal, NOTI~~ßf,~~BLlC h ?e'\-~fl~~~~E'!.~f~~"r..o. gr~tI~~~f ~~:~~o~~ ~~~ ~~,;'d~~~~~,:";'~~7?i'!,"'::M STATEMENT OF ~~~~ago Ln.. Sa, NOTICE IS HEREBY GIVEN amod W""elll HAs FlLEO A should elthe, appa... al the Tho School Board raservas WITHORAWAL FROM This busonass is Iha' Iho Rodevelopmont ~6t)J~~N ¿OR AN ORDER hearing and Slale you, objec- Iho "OhIlO re,e"anv or all bidS; PARTERNSHIP OPERATING by,"n Individual. Agancv. 01 the C'Z 01 Chula 5 I h ~h E NAMES FROM tions or file w,llIen objections 0' 10 wa"e any Inlormallty In a UN,}'ER FICTITIOUS The lIansaction ( V"ta will hold a pu IIc heating S a,\ M Wamed Wa'lalil TO with Ihe coun befo e Ih bid:. or to award the bid 10 Iha B SINESS NAME began on: 2/90. lorthopu,posoolconsldohng aa . e"ell,. hearing. YOUI appe~ranC: ~:;;::~eth:""~~\',:'r~t;;';h::;~ NEW~~~~~~"DNO. Sig~~:~~~Oo, '3 -I<{ I -- Sr/f/è ¡,/ ¡: Y¡/5 1/- I~f 3 - '" "::!~h '~..., Iff tn. R~..et ' orœx;¡¡"~~ea ~~~IIg'h';:a?~n~ 10. Ihe pOf"",e of conSlde"ng five yea' Implementation Plans 10. Ihe Baykonl. Town Conle' " ~~~ ~n~u:~w~¥.e~~~ 10~~~~'g!:'¡.:t~~ Heallh and Safety Code ""IuI,.. Ihal on 0' bolo,e Decembe' 3'. t994, and each five yea" <he'eefte', each, ,edeve'op- mont agency that has adopt'" a ,"'e""lopmenl plen p,'O' 10 Decembet 3t, '993, shall adopt, afte' a public he..,ng, an Im_ntatlon PJ"n <hal shell ",nfaln the specific goals and objectives of <he agency 10. ,IhOP,oleol e'ea. p,og..ms, p""eclS aod e'pend"u'es p~' po..d to be made du.lng Ihe ne't live yo..s, and an e,plao. allon 0' how <he goals"" eI1- JI~;~:~I':,f~~~I:~~9a; Ih'j-~j~::~entatio~. -. shell alsocon"'n, ,'" _91 <he live yoa". an annu."'""" ~R %""':.."u~~ ~~~at ~u"uaollO the Imp,em:i!=i' 'ao. TOe Implemonta shall ,n","de <he nu ~~~I~t."d;itS p~~~e~~=.a; o<henNlse ..s"ted, .. _. ~n~ sJ~~ ~~~'~~ ~e:r'J~~t~n¡n 'f~o u~,"- Modo'ele Income .-, ~un~~":~~~~n~:¡r: ",ollhelundsloaho "",. ~~'~~~~r¡u"n~~fo~ fe. 01 IhO hn>ds 10. s p~e:, tmPlemen~1 '11~"I"'Plem.ntation ::Î contains e ",oject Ih::"4 suilin ìhe d...uctlon - - , ",nfalns e ",oject <hal Will. ~:~.:"Io~irJlpl~~~, ~= , sultin the "'strue;on .. , , ~ vol 01 dwelling unitS fhal .. plementation Plan shen;oefttify heve 10 be '~'eced, <he ... ' proposed locations suita"'elo, .' Plementa'onpenShel'~i fhose 'eplecement dWelhng , ._sed locallons sui lOb' units. ¡ . ~~ .epJacement dwe " The Pubhc nea,ing will be held by <he Redevelopmonl I ¡ hol';ebl'u~~; ~~~~,;;;" .. Agency on Tueedey, Dece... be, I, '"4, folloWing lI1e City , Agency on Tuesdey, D~ Council meellng al 4 p.m, The ~u~,I~.;'.J~~o:.i~,\>'~ ~~~~~ ~mge."~~~bl:~:~ he"'~ will be held Inil vices Building, 276 Fouffh Counco Cham be's, Publ'" - Avenue, Chula VISla, CA vico Building, 276 Po 9'"'°, Veenue, Chula Vista. .'if" The Implemental"n Pions 9'910".- . e'e evallable 10, pubhc ,eview The Im"ementabon = at lI1a omcas of Ihe Depaffment a.. available lor pu",c " 'oj Community DeveJopmenl, ~: I~~~~~ ~~.;'.... 263 Fig Avenue, end at Iha Chula VlslOPubl1o LIb"">', 3-(1& REDEVE '¡ S rhl<- N6W5 PAOJECT AA .. ~::-:~~A,*, CJiOv~~~ ~ TOWN CENTRE I TOWNCENTAEII OTAY VALLEY AØA8 /~J-rf SOUTHWEST. ..' .OTICEISHEREBY- 11- =h:, ::~Vo:::= will haklo PU~IIC ~ 0/ ::" tI. '..., ODd each V8 - _Hlter, Heh rode...." ~:9:~~~rt :;:, -=-= COer 31, 1993. - ...... otto< . pUblic ::.-a :L.ImPlomentatiOn Plan' I con"n tho spedtie'" - objoctivo. 01"'0:= .. tho p"locl """'/"wag = end o,pondtur..~ . . d '" '0 made duri:¡:: _1Iv.,....., ODd ano '~'~::.~~..= . will ellmJnoto ""<!ht- locta..a. 0 Imp_onlation "'"" _I also con"n, lOr .... 0/ .... ftv. years, an annual- :I~og~".:"~r: ~~':\'t.=' c~r.:..,,¡~~~~':~'= _I Indudo tho nom'" 0/ ""ing units -ai_. .. :="'f~:.'.J~:;~a~'a::: =-. s~~ ~";:~~~:~. ~~~~"rn ~ u~~ ::ï _o'at. Incom. Ho""",, -, Indudin. ma.'"",... t't,av~.'¡'.':......~:y.= 3- J 43 CIh~ FJt; Clank! 3 -Itff ATTACHMENT 10 - Public hearing notices regarding the five year implementation plans were posted in the following areas: Bayfront Project Area 1. Bus station - end of E Street 2. Nature Interpretive Center 3. End of F Street (utility pole) 4. Bay Boulevard south of F Street 5. Public restrooms at J Street Park Otay Valley Road Project Area 1. East end of Energy Way 2. Nirvana and Otay Valley Road (business park sign) 3. Otay Valley Road/l-805 (Shell station) 4. End of Brandywine (public parking lot)' 5. Mailed to: Mendocino Homeowners Association Robinhood Point Homeowners Association Town Centre I Project Area 1. Entrance to Court Complex at 500 Third Avenue 2. Door of Chura VIsta Heritage Museum at 362 Third Avenue 3. Door of Downtown Business Association at 362 Third Avenue 4. Window of Chura VIsta Eye Care at 301 Third Avenue 5. Front door of market place at 239 Third Avenue 6. Front window of Vogue Theater at 226 Third Avenue 7. Two entrances to the Chura VIsta Public Library at 365 F Street Town Centre II Project Area 1. Trolley station - E Street 2. Gas station at Fifth and H Streets 3. City Hall 4. Community Development Department 5. Chula VIsta Shopping ,c.enter Southwest Project Area 1. Office Depot - L Street 2. Ralphs - Palomar Avenue 3. Lauderbach Community Center - Oxford Street 4. Southbay Chevrolet site - Broadway and K Streets .-- 3 --I tfs fJhÜ þCUjE blank! - 3-f'f(P NOTICE OF PUBLIC HEARING ATTACHMENT 11 REVIEW OF FIVE YEAR IMPLEMENT A nON PLANS FOR THE FOLLOWING REDEVELOPMENT PROJECT AREAS IN COMPLIANCE WITH STATE LAW (HEALTH & SAFETY CODE 33490) SA YFRONT Posted Full Size 11" x 17" TOWN CENTRE I TOWN CENTRE /I OTA Y VALLEY ROAD SOUTHWEST NOTICE IS HEREBY GIVEN that the Redevelopment Agency of the City of Chula Vista will hold a public hearing for the purpose of considering five year Implementation Plans for the Bayfront, Town Centre I, Town Centre II, Otay Valley Road and Southwest Redevelopment Project Areas. Section 33490 of the Health and Safety Code requires that on or before December 31, 1994, and each five years thereafter, each redevelopment agency that has adopted a redevelopment plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan that shall contain the specific goals and objectives of the agency for the project area, programs, projects and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects and expenditures will eliminate blight within the project area. The Implementation Plan shall also contain, for each of the five years, an annual housing program with sufficient detail to measure performance pursuant to the Implementation Plan. The implementation plan shall include the number of housing units developed, rehabilitated, price-restricted, otherwise assisted, or destroyed. The Implementation Plan shall describe the agency's plans for using annual deposits in the Low and Moderate Income Housing Fund, including making the funds available annulilly, transfer of the funds to a housing authority or other public entity, or the accrual of funds for specific projects. If the Implementation Plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced, the Implementation Plan shall identify proposed locations suitable for those replacement dwelling units. The public hearing will be held by the Redevelopment Agency on Tuesday, December 6, 1994, following the City Council meeting at 4 p.m. The hearing will be held in the Council Cham~ers, Public Services Building, 276 Fourth Avenue, Chula Vista, CA 91910. The Implementation Plans are avliilable for public review at the offices of the Department of Community Development, 263 Fig Avenue, and at the Chula Vista Public Library, Main Branch, northeast corner of F Street and Fourth Avenue. Chris Salomone Community Development Director Posted: November 1, 1994 3 -147 CJfu~ fa9E; Clank! 3-1L\8' RESOLUTION RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING THE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION PLAN THEREFOR FOR THE BAYFRONT REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that, on or before December 31, 1994, and each five years thereafter, each Redevelopment Agency that has adopted a Redevelopment Plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan including the Housing Implementation Plan therefor that shall contain the specific goals and objectives of the Agency for the Project Area, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area; and WHEREAS, the Agency has prepared a five year Implementation Plan including the Housing Implementation Plan therefor for the Bayfront Redevelopment Project Area (the "Plan") incorporating all of the elements required by Section 33490 of the Community Redevelopment Law; and WHEREAS, the Agency noticed for three consecutive weeks in a newspaper of local circulation as well as posted a Notice of Public Hearing at four permanent locations within the Bayfront Redevelopment Project Area for a period of 30 days prior to the public hearing, pursuant to Section 6063 of the Government Code and, held a public hearing to take public comments and consider the Plan on December 6, 1994; and WHEREAS, adoption of the Plan does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review requirements in accordance with Section 15061(bJl1) of the State CEQA Guidelines; and WHEREAS, adoption of the Plan does not obligate the Agency to include specific projects or expenditures in annual budgets, and does not constitute an approval of any specific program, project, or expenditure, and does not change the need for any required approval including planning entitlements or environmental review. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve: Section 1. The Five Year Implementation Plan including the Housing Implementation Plan therefor for the Bayfront Redevelopment Project, attached hereto as though fully set forth herein, is hereby adopted. Section 2. The Five Year Implementation Plan including the Housing Implementation Plan therefor will be reviewed at least once by the Redevelopment Agency following a noticed public hearing, no sooner than the end of the second year and no later than the end of the third year following adoption of the Plan. 3-/49 Resolution xxxx Page 2 Section 3. The Five Year Implementation Plan including the Housing Implementation Plan therefor shall be reviewed, updated, revised if necessary, and readopted in accordance with the requirements of the Community Redevelopment Law. Section 4. The adoption of the Implementation Plan including the Housing Implementation Plan therefor is not a project within the meaning of Section 21000 of the Public Resources Code (CEQA) and the inclusion of programs, projects, and expenditures within the Implementation Plan including the Housing Implementation Plan therefor does not obligate the Agency to include such expenditures in an annual budget and does not eliminate the need for specific projects to obtain the required development approvals including environmental analysis and planning entitlements. PRESENTED BY: 1=Otc "DAJOM:P Chris Salomone Community Developme ruce M. Boogaard Agency Counsel [C:IWP51 IAGENCYIRESOSIRESOXXX 1.RES] 3-lsV RESOLUTION RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING THE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION PLAN THEREFOR FOR THE OTAY VALLEY ROAD REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that, on or before December 31, 1994, and each five years thereafter, each Redevelopment Agency that has adopted a Redevelopment Plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan including the Housing Implementation Plan therefor that shall contain the specific goals and objectives of the Agency for the Project Area, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area; and WHEREAS, the Agency has prepared a five year Implementation Plan including the Housing Implementation Plan therefor for the Otay Valley Road Redevelopment Project Area (the "Plan") incorporating all of the elements required by Section 33490 of the Community Redevelopment Law; and WHEREAS, the Agency noticed for three consecutive weeks in a newspaper of local circulation as well as posted a Notice of Public Hearing at four permanent locations within the Otay Valley Road Redevelopment Project Area for a period of 30 days prior to the public hearing, pursuant to Section 6063 of the Government Code and, held a public hearing to take public comments and consider the Plan on December 6, 1994; and WHEREAS, adoption of the Plan does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review requirements in accordance with Section 15061(bJl1) of the State CEQA Guidelines; and WHEREAS, adoption of the Plan does not obligate the Agency to include specific projects or expenditures in annual budgets, and does not constitute an approval of any specific program, project, or expenditure, and does not change the need for any required approval including planning entitlements or environmental review. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve: Section 1. The Five Year Implementation Plan including the Housing Implementation Plan therefor for the Otay Valley Road Redevelopment Project, attached hereto as though fully set forth herein, is hereby adopted. Section 2. The Five Year Implementation Plan including the Housing Implementation Plan therefor will be reviewed at least once by the Redevelopment Agency following a noticed public hearing, no sooner than the end of the second year and no later than the end of the third year following adoption of the Plan. 3 - (5 I Resolution xxxx Page 2 Section 3. The Five Year Implementation Plan including the Housing Implementation Plan therefor shall be reviewed, updated, revised if necessary, and readopted in accordance with the requirements of the Community Redevelopment Law. Section 4. The adoption of the Implementation Plan including the Housing Implementation Plan therefor is not a project within the meaning of Section 21000 of the Public Resources Code (CEQA) and the inclusion of programs, projects, and expenditures within the Implementation Plan including the Housing Implementation Plan therefor does not obligate the Agency to include such expenditures in an annual budget and does not eliminate the need for specific projects to obtain the required development approvals including environmental analysis and planning entitlements. FOfZ--- 1 ED AS TO F hris Salomone Community Developme Bruce M. Boogaard Agency Counsel [C:\WP51 \AGENCY\RESOS\RESOXXX5.RES] .3 -lfZ- RESOLUTION RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING THE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION PLAN THEREFOR FOR THE SOUTHWEST REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that, on or before December 31, 1994, and each five years thereafter, each Redevelopment Agency that has adopted a Redevelopment Plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan including the Housing Implementation Plan therefor that shall contain the specific goals and objectives of the Agency for the Project Area, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area; and WHEREAS, the Agency has prepared a five year Implementation Plan including the Housing Implementation Plan therefor for the Southwest Redevelopment Project Area (the "Plan") incorporating all of the elements required by Section 33490 of the Community Redevelopment Law; and WHEREAS, the Agency noticed for three consecutive weeks in a newspaper of local circulation as well as posted a Notice of Public Hearing at four permanent locations within the Southwest Redevelopment Project Area for a period of 30 days prior to the public hearing, pursuant to Section 6063 of the Government Code and, held a public hearing to take public comments and consider the Plan on December 6, 1994; and WHEREAS, adoption of the Plan does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review requirements in accordance with Section 15061(b)(1) of the State CEQA Guidelines; and WHEREAS, adoption of the Plan does not obligate the Agency to include specific projects or expenditures in annual budgets, and does not constitute an approval of any specific program, project, or expenditure, and does not change the need for any required approval including planning entitlements or environmental review. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve: Section 1. The Five Year Implementation Plan including the Housing Implementation Plan therefor for the Southwest Redevelopment Project, attached hereto as though fully set forth herein, is hereby adopted. Section 2. The Five Year Implementation Plan including the Housing Implementation Plan therefor will be reviewed at least once by the Redevelopment Agency following a noticed public hearing, no sooner than the end of the second year and no later than the end of the third year following adoption of the Plan. .3 - /5"3 Resolution xxxx Page 2 Section 3. The Five Year Implementation Plan including the Housing Implementation Plan therefor shall be reviewed, updated, revised if necessary, and readopted in accordance with the requirements of the Community Redevelopment Law. Section 4. The adoption of the Implementation Plan including the Housing Implementation Plan therefor is not a project within the meaning of Section 21000 of the Public Resources Code (CEQA) and the inclusion of programs, projects, and expenditures within the Implementation Plan including the Housing Implementation Plan therefor does not obligate the Agency to include such expenditures in an annual budget and does not eliminate the need for specific projects to obtain the required development approvals including environmental analysis and planning entitlements. OAt' My PRESENTED BY: Chris Salomone Community Developm Bruce M. Boogaard Agency. Counsel [C:IWP51IAGENCYIRESOSIRESOXXX4.RES] 3 - ISL{ RESOLUTION RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING THE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION THEREFOR FOR THE TOWN CENTRE I REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that, on or before December 31, 1994, and each five years thereafter, each Redevelopment Agency that has adopted a Redevelopment Plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan including the Housing Implementation Plan therefor that shall contain the specific goals and objectives of the Agency for the Project Area, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area; and WHEREAS, the Agency has prepared a five year Implementation Plan including the Housing Implementation Plan therefor for the Town Centre I Redevelopment Project Area (the "Plan") incorporating all of the elements required by Section 33490 of the Community Redevelopment Law; and WHEREAS, the Agency noticed for three consecutive weeks in a newspaper of local circulation as well as posted a Notice of Public Hearing at four permanent locations within the Town Centre I Redevelopment Project Area for a period of 30 days prior to the public hearing, pursuant to Section 6063 of the Government Code and, held a public hearing to take public comments and consider the Plan on December 6, 1994; and WHEREAS, adoption of the Plan does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review requirements in accordance with Section 15061(bJl1) of the State CEQA Guidelines; and WHEREAS, adoption of the Plan does not obligate the Agency to include specific projects or expenditures in annual budgets, and does not constitute an approval of any specific program, project, or expenditure, and does not change the need for any required approval including planning entitlements or environmental review. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve: Section 1. The Five Year Implementation Plan including the Housing Implementation Plan therefor for the Town Centre I Redevelopment Project, attached hereto as though fully set forth herein, is hereby adopted. Section 2. The Five Year Implementation Plan including the Housing Implementation Plan therefor will be reviewed at least once by the Redevelopment Agency following a noticed public hearing, no sooner than the end of the second year and no later than the end of the third year following adoption of the Plan. 3 -I~~ Resolution xxxx Page 2 Section 3. The Five Year Implementation Plan including the Housing Implementation Plan therefor shall be reviewed, updated. revised if necessary, and readopted in accordance with the requirements of the Community Redevelopment Law. Section 4. The adoption of the Implementation Plan including the Housing Implementation Plan therefor is not a project within the meaning of Section 21000 of the Public Resources Code (CEQA) and the inclusion of programs, projects, and expenditures within the Implementation Plan including the Housing Implementation Plan therefor does not obligate the Agency to include such expenditures in an annual budget and does not eliminate the need for specific projects to obtain the required development approvals including environmental analysis and planning entitlements. Chris Salomone Community Developme ~ Bruce M. Boogaard Agency Counsel [C:IWP51IAGENCYIRESOSIRESOXXX2.RES] 3 - 190 RESOLUTION RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING THE FIVE YEAR IMPLEMENTATION PLAN INCLUDING THE HOUSING IMPLEMENTATION PLAN THEREFOR FOR THE TOWN CENTRE II REDEVELOPMENT PROJECT PURSUANT TO SECTION 33490 OF THE COMMUNITY REDEVELOPMENT LAW WHEREAS, Section 33490 of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) requires that, on or before December 31, 1994, and each five years thereafter, each Redevelopment Agency that has adopted a Redevelopment Plan prior to December 31, 1993, shall adopt, after a public hearing, an Implementation Plan including the Housing Implementation Plan therefor that shall contain the specific goals and objectives of the Agency for the Project Area, the programs, projects, and expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, projects, and expenditures will eliminate blight within the Project Area; and WHEREAS, the Agency has prepared a five year Implementation Plan including the Housing Implementation Plan therefor for the Town Centre II Redevelopment Project Area (the "Plan") incorporating all of the elements required by Section 33490 of the Community Redevelopment Law; and WHEREAS, the Agency noticed for three consecutive weeks in a newspaper of local circulation as well as posted a Notice of Public Hearing at four permanent locations within the Town Centre II Redevelopment Project Area for a period of 30 days prior to the public hearing, pursuant to Section 6063 of the Government Code and, held a public hearing to take public comments and consider the Plan on December 6, 1994; and WHEREAS, adoption of the Plan does not constitute approval of a project under the California Environmental Quality Act (CEQA) and therefore is exempt from environmental review requirements in accordance with Section 15061(bJl1) of the State CEQA Guidelines; and WHEREAS, adoption of the Plan does not obligate the Agency to include specific projects or expenditures in annual budgets, and does not constitute an approval of any specific program, project, or expenditure, and does not change the need for any required approval including planning entitlements or environmental review. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve: Section 1. The Five Year Implementation Plan including the Housing Implementation Plan therefor for the Town Centre II Redevelopment Project, attached hereto as though fully set forth herein, is hereby adopted. Section 2. The Five Year Implementation Plan including the Housing Implementation Plan therefor will be reviewed at least once by the Redevelopment Agency following a noticed public hearing, no sooner than the end of the second year and no later than the end of the third year following adoption of the Plan. 3-([;1 Resolution xxxx Page 2 Section 3. The Five Year Implementation Plan including the Housing Implementation Plan therefor shall be reviewed, updated, revised if necessary, and readopted in accordance with the requirements of the Community Redevelopment Law. Section 4. The adoption of the Implementation Plan including the Housing Implementation Plan therefor is not a project within the meaning of Section 21000 of the Public Resources Code (CEQA) and the inclusion of programs, projects, and expenditures within the Implementation Plan including the Housing Implementation Plan therefor does not obligate the Agency to include such expenditures in an annual budget and does not eliminate the need for specific projects to obtain the required development approvals including environmenta.l analysis and planning entitlements. Chris Salomone Community Developme APP OV 0 A~O , ruce M. Boogaard Agency Counsel BY: [C:IWP51IAGENCYIRESOSIRESOXXX3.RESI 3 - I 5r' REDEVELOPMENT AGENCY AGENDA STATEMENT Item Meeting Date 12/13/94 ;f ITEM TITLE: PUBLIC HEARING: LEASE OF THE PROPERTY AT 753 BROADWAY TO BUDGET RENT A CAR AND FINDING, PURSUANT TO SECTION 33431 , THAT THIS LEASE WILL ASSIST IN THE ELIMINATION OF BLIGHT AND THAT CONSIDERATION OFFERED IS NOT LESS THAN MARKET VALUE. SUBMITTED BY: RESOLUTION 1443 Authorizing the Chairwoman to execute a lease for the property located at 753 Broadway with Budget Rent A Car Community DeveloP,ment Dire(~ G~' Executive Director ~ bA~\ \ U -" (4/5ths Vote: Yes No _l BACKGROUND: The Chula Vista Redevelopment Agency acquired the property at 753 Broadway (formerly utilized as a Ford truck lot) as part of the Auto Park project. Budget Rent A Car approached the Community Development Staff with an offer to lease the property. Staff negotiated the terms of the proposed lease with Budget Rent A Car's broker. Staff believes that the terms agreed upon constitute a market rate for the property. REVIEWED BY: RECOMMENDATION: That the Agency approve the resolution and authorize the Chairwoman to execute the lease. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable DISCUSSION: The property at 753 Broadway was acquired by the Redevelopment Agency as part of the Auto Park project. The property consists of 39,100 square feet of parking lot and a 300 square foot office building. The site was previously used as a Ford truck sales site and is currently vacant. The property is physically isolated from other Agency properties acquired in the Auto Park project, with the South Bay Chevrolet sites being across K Street to the south, and the other Fuller Ford properties being across Broadway to the west. A location map is attached (Attachment A). Budget Rent A Car desires to rent the property for use as a car rental and sale lot, activities which are not substantially different from that of the previous occupant, Fuller Ford. There are currently no development plans for the site, it is not the subject of a RFP, nor is it subject to any negotiating agreement. The lease agreement maintains some flexibility for future development by the Agency by offering a relatively short, five year term with an option to terminate the lease after three years with six months notice should use of the site become necessary for redevelopment purposes. Health and Safety Code Section 33433 requires that the Agency receive fair market value for any lease of Agency owned property. The Redevelopment Agency paid $19.76 per square foot for the land at 753 Broadway. This sale, however, occurred when real estate prices were peaking and does not represent an 'arms length' transaction because of the Agency's desire 4-1 Page 2, Item ---i.- Meeting Date 12/13/94 to proceed with the Auto Park project. Based on comparable sale prices, staff's opinion is that the current value of the site is between $12 and $15 per square foot, and that such property would lease for approximately $.08 per month per square foot on the open market. The Resolution contains a provision that states that the lease being considered represents a market rate for the property in question, and that no subsidy is being granted. The lease rate begins at approximately $.07 per square foot and escalates to approximately $.08 per square foot by the third year, with additional increases being the greater of 2 % or the rate of inflation not to exceed 4% per year. The proposed lease is attached. Staff is requesting the proposed lease be approved in substantially the same form attached hereto, with authorization to be modified in a final to be approved by the City Attorney. The specific terms of the lease agreement are as follows: . Rent: Net monthly rates: Year 1: $2,600, Year 1 Year 2: $2,800, With no C.P.I. increase Year 3: $3,000, With no C.P.I. increase Year 4: $3,000, Increase of 2% or C.P.1. with 4% cap, whichever is greater Year 5: Year 4 with increase as above . Termination: The Agency reserves the right to terminate the lease after 36 months with 6 months notice. Tenant may terminate lease anytime within the 25th and 30th months of the lease term by giving the Landlord thirty (30) days notice. . Lease Term: Five Year lease with option to renew if both parties agree. Lease term and rent rates to be renegotiated. . Relocation: Tenant will waive all owner participation and relocation rights. . Tenant Improvements: Premises shall be delivered in good condition with all existing HVAC, plumbing, mechanical. electrical and lighting in good working order. . Advance Rent: Upon mutual execution of the lease, Tenant shall pay Landlord rent for the first month of the lease term. . Security Deposit: Upon mutual execution of the lease, Tenant shall pay a security deposit equal to one month's rent. . Commencement: Rent shall commence thirty days after delivery of space to tenant. J./-~ Page 3, Item Meeting Date 12/13/94 tf . Business License: This offer and any subsequent lease are contingent upon Tenant obtaining a business license for said location. . Brokerage: Tenant is represented by Tracy Clark of Voit Commercial Brokerage. Landlord agrees to pay Voit Commercial Brokerage a commission in accordance with Voit's standard Schedule of Commissions upon the execution of a lease by both Landlord and Tenant, a copy of which is attached hereto (Attachment C). FISCAL IMPACT: Annual lease payments from Budget Rent A Car to the Redevelopment Agency will total $31,200 the first year, $33,600 the second year, and $36,000 the third year. After the third year, the rent will increase by the greater of the rate of inflation or 2 %, whichever is greater, not to exceed 4%. Voit Commercial Brokerage company will receive a commission from the Agency annually in the amount of $2,184 the first year, $2,352 the second year, and $2,160 the third year. In the fourth and fifth years the commission amount will be 5% of the rent. These commission payments will be made from the rent proceeds. The City will receive sales tax from Budget Rent A Car's activities on the site (renting and selling cars) and the property will be returned to the property tax rolls bringing several hundred dollars annually to the General Fund. Budget Rent A Car's occupation of the property also relieves the City of the obligation to maintain and secure the property. 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CJfu~ fa9E; Clank! ;/-~ EXHIBIT "B" Lease Agreement between Redevelopment Agency of the City of Chula vista and West Team, Inc., dba Budget Rent A Car [753 Broadway, Chula Vista] THIS LEASE ("Lease") is entered into effective as of December 13, 1994, by and between the Redevelopment Agency of the City of Chula Vista, a public body corporate and politic ("Landlord") and West Team, Inc., a California corporation, dba Budget Rent A Car, ("Tenant") with reference to the following facts: WHEREAS, Landlord is the owner in fee title of certain improved real property, consisting of an approximately 39,100 square foot parking lot and a 300 square foot office building, located at 753 Broadway, Chula vista, as more particularly described in Exhibit A attached hereto ("Premises") ; WHEREAS, Tenant desires to lease the Premises for purposes of operating a car rental and sale business thereon; WHEREAS, in accordance with California Health and Safety Code section 33431, Landlord has conducted a public hearing to consider the lease of the Premises to Tenant without public bid; and WHEREAS, after considering public testimony with respect to the Lease, Landlord desires to lease .the Premises to Tenant subject to the terms and conditions set forth herein; NOW, THEREFORE, for good and.valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, Landlord and Tenant hereby agree that Landlord shall lease the Premises to Tenant subject to the following terms and conditions: 1. Rent 1.1 Years One Throuqh Three. Tenant covenants and agrees to pay to Landlord as rent for years 1 through 3 of the Term (defined below) the following amounts: Year 1: $31,200 ($2,600 per month); Year 2: $33,600 ($2,800 per month); Year 3: $36,000 ($3,000 per month). 1 ~..7 1.2 Years Four and Five. Tenant covenants and agrees to pay to Landlord as rent for Years 4 and 5 of the Term (defined below) an amount equal to the previous year's rent plus an amount equal to the greater of (a) 2% of the previous year's rent; or (b) the percentage increase in the Consumer Price Index, All Urban Consumers, applicable to the San Diego Region, with 1984 = 100, for the previous year, based upon the then most recent available data. Notwithstanding the foregoing, no rent increase for year 4 or 5 shall exceed 4% over the previous year's rent. 1.3 Payment of Rent. All rent payments shall be due and payable in advance on or before the first calendar day of each month during the Term. Rent shall commence accruing on the earlier to occur of the date thirty (30) days after Landlord's delivery of the Premises to Tenant, or the date Tenant opens for business. Rent for any partial month prior to the first full month of occupancy shall be prorated daily on the basis of a 30 day month and payable with the first monthly rental payment. 1.4 Security Deposit. Upon Tenant's execution and delivery of the Lease, Tenant shall deposit with Landlord the amount of $2,600. Such amount shall be held by Landlord as a security for Tenant's obligations under the Lease. 2. Term. 2.1 Defined. The term of this Lease ("Term") shall commence upon the date Landlord delivers the Premises to Tenant and Tenant accepts possession thereof ("Commencement Date") and shall continue to run until the five (5) year anniversary of the first calendar day of the first calendar month following the Commencement Date, subject to Tenant's and Landlord's rights to terminate this Lease as provided in section 2.2 hereof and elsewhere in this Lease. 2.2 Terminatinq Events: 2.2.1 Landlord's Riqht to Terminate: Tenant's Waiver of Riqhts. Effective upon the expiration of year 3 of the Lease Term, or at any time thereafter, upon six (6) months written notice to Tenant by Landlord, Landlord shall have the right, in its sole discretion, to terminate this Lease, without cost or damage, for purposes of facilitating the redevelopment of the Premises in accordance with the Redevelopment Plan then in effect for the Redevelopment Project Area in which the Premises are located. 2 .tj-J In the event of such a termination, Tenant hereby waives any and all rights to relocation benefits and/or owner participation which might otherwise arise in connection with Landlord's future use of the Premises including, without limitation, such rights arising under the California Health and Safety Code and Government Code, the Redevelopment Plan for the applicable project Area, and any and all other federal, state or local laws, regulations or provisions which might otherwise afford Tenant such rights. 2.4.2 Tenant's Rioht to Terminate. Tenant shall have the right to terminate this Lease without cost or damage (a) in the event that Tenant, after good faith efforts, is unable to obtain any and all permits and licenses necessary to conduct its business at the Premises in accordance with the use of provisions of this Lease, or (b) at anytime within the 25th and 30th months of the Term upon thirty (30) days written notice to Landlord. 3. Deliverv and Condition of Premises. 3.1 Landlord agrees to deliver the Premises to Tenant within three days of Tenant's execution of this Lease in a clean and working condition with all existing HVAC, plumbing, mechanical, electrical and lighting improvements in good working order. Subject to the foregoing, Tenant agrees to accept the Premises in an "as is" condition with no obligation on Landlord's part to repair or replace any surface or structure. Tenant acknowledges and agrees that the leasehold interest transferred hereby is subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Premises, and any covenants or restrictions of record, and accepts this Lease subject thereto and to all matters disclosed thereby and by any exhibits attached hereto. Tenant acknowledges that neither Landlord nor Landlord's agent has made any representation or warranty as to the present or future suitability of the Premises for the conduct of Tenant's business. Furthermore, Landlord makes no representations as to the possibility of hazardous materials or toxic waste being located on the subject premises except that Landlord warrants and represents that Landlord has not deposited any such materials on the Subject Property. Tenant has the right to inspect and conduct soils tests and studies as hereinbelow provided, and to thereby determine for itself that the soils condition is satisfactory to his needs. 3 1- ~ ~ 3.2 Delav in Possession. Notwithstanding Landlord's agreement to deliver the Premises provided above, if for any reason Landlord cannot deliver possession of the Premises to Tenant on said date, Landlord shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or the obligations of Tenant hereunder or extend the term hereof, but in such case, Tenant shall not be obligated to pay rent or perform the obligations of this Lease until possession of the Premises is tendered to Tenant; provided, however, that if Landlord shall not have delivered possession of the Premises within ten (10) days from said date, Tenant may, at Tenant's option, by notice in writing to Landlord within ten (10) days thereafter, cancel this Lease, in which event the parties shall be discharged from all obligations hereunder; provided further, however, that if such written notice of Tenant is not received by Landlord within said ten (10) day period, Tenant's right to cancel this Lease hereunder shall terminate and be of no further force or effect. 4. Use. 4.1 Tenant's use of the site shall be limited to the rental and sale of recent model automobiles and small trucks. 4.2 Compliance with the Law. Tenant shall, at Tenant's expense, comply promptly with all applicable statutes, ordinances, rules, regulations, orders, covenants and restrictions of record, and requirements in effect during the term or any part of the term hereof, regulating the use by Tenant of the Premises. Tenant shall not use nor permit the use of the Premises in any manner that will tend to create waste or a nuisance. 4.3 Obliqation to Refrain from Discrimination. Tenant covenants by and for itself, its successors, its assigns and every successor in interest to the site or any part thereof, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, age, handicaps, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the site, nor shall Tenant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the site. The foregoing covenants shall run with the land. 4.3.1 Form of Nondiscrimination and Non-Seqreqation 4 4-10 Clauses. Tenant shall refrain from restricting the rental, sale or lease of the site on the basis of race, color, creed, religion, sex, marital status, age, handicaps, ancestry or national origin of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non- segregation clauses: 4.3.2 In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicaps, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein conveyed, nor shall the grantee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." 4.3.3 In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicaps, national origin or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased, nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein leased." 4.3.4 In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicaps, national origin or ancestry in the 5 tj,1! sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." 5. Risks of Loss; Insurance. 5.1 Indemnitv. Tenant shall indemnify and hold harmless Landlord from and against any and all claims arising from Tenant's use of the Premises, or from the conduct of Tenant's business or from any activity, work or things done, permitted or suffered by Tenant in or about the Premises or elsewhere and shall further indemnify and hold harmless Landlord from and against any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or arising from any negligence of the Tenant, or any of Tenant's agents, contractors, or employees, and from and against all cost, attorney's fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon; and in case any action or proceeding be brought against Landlord by reason of any such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel satisfactory to Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons, in upon or about the Premises arising from any cause and Tenant hereby waives all claims in respect thereof against Landlord. 5.2 Exemption of Landlord from Liabilitv. Tenant hereby agrees that Landlord shall not be liable for injury to Tenant's business or any loss of income therefrom or for damage to the goods, wares, merchandise or other property of Tenant, Tenant's employees, invitees, customers, or any other person in or about the Premises, nor shall Landlord be liable for injury to the Tenant, Tenant's employees, agents or contractors, whether such damage or injury is caused by or results from fire, flood, rain, water, steam, electricity, gas, or from the breakage, leakage, obstruction or other defects of the land, grading, elevation of the land, pipes, wires, appliances, plumbing, or from any other cause, whether the said damage or injury results from conditions arising upon the Premises or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same 6 1-/~ are inaccessible to Tenant. Landlord shall not be liable for any damages arising from any act or neglect of any other tenant, if any, of the land adjacent to the premises leased by Landlord. 5.3 Liabilitv Insurance. Tenant shall, at Tenant's expense obtain and keep in force during the term of this Lease a comprehensive general liability policy insuring Landlord and Tenant against any liability arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be a combined single limit policy in an amount not less than $1,000,000 per occurrence. The policy shall insure performance by Tenant of the indemnity provisions of this section. The limits of said insurance shall not, however, limit the liability of Tenant hereunder. 5.4 Propertv Insurance. Tenant shall obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to the Premises, in the amount of the full replacement value thereof, as the same may exist from time to time, which replacement value is now $ , against all perils included with the classification of fire, extended coverage, vandalism, malicious mischief, flood, and special extended perils ("all risk" as such term is used in the insurance industry). said insurance shall provide for payment of loss thereunder to Landlord and to the holders of mortgages or deeds of trust on the Premises. The Tenant shall, in addition, obtain and keep in force during the term of this Lease a policy of rental value insurance covering a period of one year, with loss payable to Landlord, which insurance shall also cover all real estate taxes and insurance costs for said period. A stipulated value or agreed amount endorsement deleting the coinsurance provision of the policy shall be procured with said insurance as well as an automatic increase in insurance endorsement causing the increase in annual property insurance coverage by 2% per quarter. If the Tenant shall fail to procure and maintain said insurance the Landlord may, but shall not be required to, procure and maintain the same, but at the expense of Tenant. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $1,000 per occurrence, and Tenant shall be liable for such deductible amount. 5.5 Insurance Policies. 7 1,./3 Insurance required hereunder shall be in companies holding a "General Policyholders Rating" of at least A minus, or such other rating as may be required by a lender having a lien on the Premises, as set forth in the most current issue of "Best's Insurance Guide." The Tenant shall deliver to the Landlord copies of policies of such insurance or certificates evidencing the existence and amounts of such insurance with loss payable clauses as required by this section. No such policy shall be cancelable or subject to reduction of coverage or other modification except after thirty (30) days prior written notice to Landlord. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with renewals or "binders" thereof, or Landlord may order such insurance and charge the cost thereof to Tenant, which amount shall be payable by Tenant upon demand. Tenant shall not do or permit to be done anything which shall invalidate the insurance policies referred to in this Lease. If Tenant does or permits to be done anything which shall increase the cost of the insurance policies referred to herein, then Tenant shall forthwith upon Landlord's demand reimburse Landlord for any additional premiums attributable to any act or omission or operation of Tenant causing such increase in the cost of insurance. 5.6 Waiver of Subroqation. Tenant and Landlord each hereby release and relieve the other, and waive their entire right of recovery against the other for loss or damage arising out of or incident to the perils insured against under this Lease, which perils occur in, on or about the Premises, whether due to the negligence of Landlord or Tenant or their agents, employees, contractors and/or invitees. Tenant and Landlord shall, upon obtaining the policies of insurance required hereunder, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. 6. Maintenance, Repairs and Alternations. 6.1 Tenant's Duties. Tenant shall keep in good order, condition and repair the Premises and every part thereof, structural and non- structural, (whether or not such portion of the premises requiring repair, or the means of repairing the same are reasonably or readily accessible to Tenant, and whether or not the need for such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of such portion of the Premises) including, without limiting the generality of the foregoing, all plumbing, heating, air conditioning, ventilating, electrical, lighting facilities and equipment 8 1-/-11 within the Premises, fixtures, walls (interior and exterior), foundations, ceilings, roofs (interior and exterior), floors, windows, doors, plate glass and skylights located within the Premises, and all landscaping, driveways, parking lots, fences and signs located on the Premises and sidewalks and parkways adjacent to the Premises. 6.2 Surrender. On the last day of the term hereof, or on sooner termination, Tenant shall surrender the Premises to Landlord in the same condition as when received, or if such improvements was constructed, then when constructed, ordinary wear and tear excepted, clean and free of debris. Tenant shall repair any damage to the Premises occasioned by the installation or removal of Tenant's trade fixtures, furnishing and equipment. Notwithstanding anything to the contrary otherwise stated in this Lease, Tenant shall leave the air lines, power panels, electrical distributions systems, lighting fixtures, space heaters, air conditioning, plumbing and fencing on the premises in good operating condition. 6.3 Landlord's Riqhts. If tenant fails to perform Tenant's obligations under this Section, or under any other paragraph of this Lease, Landlord may at its option (but shall not be required to) enter upon the Premises after ten (10) days prior written notice to Tenant (except in the case of an emergency, in which case no notice shall be required), perform such obligations on Tenant's behalf and put the same in good order, condition and repair, and the cost thereof together with interest thereon at the maximum rate then allowable by law shall become due and payable as additional rental to Landlord together with Tenant's next rental installment. 6.4 Landlord's Obliqations. Except for the obligations of Landlord specifically elsewhere provided in this Lease, it is intended by the parties hereto that Landlord has no obligation, in any manner whatsoever, to repair and maintain the Premises nor the structural improvements, including any buildings, now located or to be constructed thereon, nor the equipment now located or to be constructed therein, whether structural or non structural, all of which obligations are intended to be that of the Tenant under section 6.1. Tenant expressly waives the benefit of any statute now, or hereinafter in effect which would otherwise afford Tenant the right to make repairs at Landlord's expense or to terminate this Lease 9 -1 ~ /5 because of Landlord's failure to keep the premises in good order, condition and repair. 6.5 Alterations and Additions. 6.5.1 Alterations without Consent Prohibited. Tenant shall not, without Landlord's prior written consent make any alterations, improvements, additions, or utility Installations in, on or about the Premises, except for non structural alterations not exceeding $25,000 in cumulative costs during the term of this Lease. In any event, whether or not in excess of $25,000 in cumulative cost, Tenant shall make no change or alteration to the exterior of the Premises nor the exterior of the building(s) on the Premises without Landlord's prior written consent. As used in this Section, the term "Utility Installation" shall mean carpeting, window coverings, air lines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing, and fencing. Landlord may require that Tenant remove any or all of said alterations, improvements, additions or utility Installations at the expiration of the term, and restore the Premises to their prior condition. Landlord may require Tenant to provide Landlord, at Tenant's sole cost and expense, a lien and completion bond in an amount equal to one and one-half times the estimated cost of such improvements, to insure Landlord against any liability for mechanic's and materialmen's liens and to insure completion of the work. Should Tenant make any alterations, improvements additions or utility Installations without the prior approval of Landlord, Landlord may require that Tenant remove any or all off the same. 6.5.2 Procedure: Permits re~uired. Any alterations, improvements, additions or utility Installations in, or about the Premises that Tenant shall desire to make and which requires the consent of the Landlord shall be presented to Landlord in written form, with proposed detailed plans. If Landlord shall give its consent, the consent shall be deemed conditioned upon Tenant acquiring a permit to do so form appropriate governmental agencies, the furnishing of a copy thereof to Landlord prior to the commencement of the work and the compliance by Tenant of all conditions of said permit in a prompt and expeditious manner. 6.5.3 Mechanics and Materialmen's Liens. Tenant shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to 10 1-/b or for Tenant at or for use in the Premises, which claims may be secured by any mechanics' or materialmen's lien against the Premises or any interest therein. Tenant shall give Landlord not less than ten (10) days' notice prior to the commencement of any work in the Premises, and Landlord shall have the right to post notices of non-responsibility in or on the Premises as provided by law. If Tenant shall, in good faith, contest the validity of any such lien, claim or demand, then Tenant shall, at its sole expense defend itself and Landlord against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Landlord or the Premises, upon the condition that if Landlord shall require, Tenant shall furnish to landlord a surety bond satisfactory to Landlord in an amount equal to such contested lien claim or demand indemnifying Landlord against liability for the same and holding the Premises free from the effect of such lien or claim. In addition, Landlord may require Tenant to pay Landlord's attorneys fees and costs in participating in such action if Landlord shall decide it is to its best interest to do so. 6.5.4 Title to Alterations. Unless Landlord requires their removal, as set forth in section 6.5.1, all alterations, improvements, additions and utility Installations (whether or not such utility Installations constitute trade fixtures of Tenant), which may be made on the Premises, shall become the property of Landlord and remain upon and be surrendered with the Premises at the expiration of the term. Notwithstanding the provisions of this Section, Tenant's machinery and equipment, other than that which is affixed to the Premises so that it cannot be removed without material damage to the Premises, shall remain the property of Tenant and may be removed by Tenant subject to Tenant's repair obligations hereunder. 7. Real Propertv Taxes. 7.1 Definitions. 7.1.1 Real Property Tax. As used herein, the term "real property tax" shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or estate taxes) . imposed on the Premises by any authority having the direct or indirect power to tax, including any city, state or federal government, or any school, agricultural, 11 4~/1 sanitary, fire, street, drainage or other improvement district thereof, as against any legal or equitable interest of Landlord in the Premises or in the real property of which the Premises are a part, as against Landlord's right to rent or other income therefrom, and as against Landlord's business of leasing the Premises. 7.2 pavment of Taxes. . Tenant shall pay the real property tax, as defined herein, applicable to the Premises during the term of this Lease. All such payments shall be made qat least ten (10) days prior to the delinquency date of such payment. Tenant shall promptly furnish Landlord with satisfactory evidence that such taxes have been paid. If any such taxes paid by Tenant shall cover any period of time prior to or after the expiration of the term hereof; Tenant's share of such taxes shall be equitably prorated to cover only the period of time within the tax fiscal year during which this Lease shall be in effect, and Landlord shall reimburse Tenant to the extent required. If Tenant shall fail to pay any such taxes, Landlord shall have the right to pay the. same, in which case Tenant shall repay such amount to Landlord with Tenant's next rent installment together with interest at the maximum rate then allowable by law. 7.3 Joint Assessment. If the Premises are not separately assessed, Tenant's liability shall be an equitable proportion of the real property taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be determined by Landlord from the respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available. Landlord's reasonable determination thereof, in good faith, shall be conclusive. 7.4 Personal Property Taxes. 7.4.1 Tenant shall pay prior to delinquency all taxes assessed against and levied upon trade fixtures, furnishings, equipment and all other personal property of Tenant contained in the Premises or elsewhere. When possible, Tenant shall cause said trade fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Landlord. 7.4.2 If any of Tenant's said personal property shall be assessed with Landlord's real property, Tenant shall pay Landlord the taxes attributable to Tenant within 12 Ij,./J' 10 days after receipt of a written statement setting forth the taxes applicable to Tenant's property. 7.5 Possessorv Interest Tax. The provisions of this Lease may give rise to the creation of a possessory interest in Landlord-owned tax exempt land or improvements. If such a possessory interest is created by this Lease, it may be subject to property taxation pursuant to California Revenue and Taxation Code sections 107, et seq., and the Tenant may be subject to the payment of property taxes levied on such interest. In such event, Tenant agrees to pay, or cause to be paid, when due any such possessory interest tax. This notice is given pursuant to Revenue and Taxation Code Section 107.6. 8. utilities. Tenant shall pay for all water, gas, heat, light, power, telephone and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to Tenant, Tenant shall pay a reasonable proportion to be determined by Landlord of all charges jointly metered with other premises. 9. Assiqnment and Sublettinq. 9.1 Landlord's Consent Required. Tenant shall not voluntarily or by operation of law assign, transfer, mortgage, sublet, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or in the Premises, without Landlord's prior written consent, which Landlord shall not unreasonably withhold. Any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void, and shall constitute a breach of this Lease. 9.2 No Release of Tenant. Regardless of Landlord's consent, no subletting or assignment shall release Tenant of Tenant's obligation or alter the primary liability of Tenant to pay the rent and to perform all other obligations to be performed by Tenant hereunder. The acceptance of rent by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision hereof. Consent to one assignment or subletting shall not be deemed consent to any subsequent assignment or subletting. In the event of default by any assignee of Tenant or any successor of Tenant, in the performance of any of the terms hereof, Landlord may proceed directly against Tenant without the necessity of exhausting 13 J/-11 remedies against said assignee. Landlord may consent to subsequent assignments or subletting of this Lease or amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant, or any successor of Tenant, and without obtaining its or their consent thereto and such action shall not relieve Tenant of liability under this Lease. 10. Defaults: Remedies. 10.1 Defaults. the following events breach of this Lease The occurrence of anyone or more of shall constitute a material default and by Tenant: 10.1.1 Abandonment. The vacating or abandonment of the Premises by Tenant. 10.1.2 Failure to Pav Rent. The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure shall continue for a period of three days after written notice thereof from Landlord to Tenant. In the event that Landlord serves Tenant with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes such Notice to Pay Rent or Quit shall also constitute the notice required by this subparagraph. 10.1.3 Failure to Perform Other Obliqations. The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, other than the failure to pay rent or make other payments hereunder, where such failure shall continue for a period of 30 days after written notice hereof from Landlord to Tenant; provided, however, that if the nature of Tenant's default is such that more than 30 days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such cure within said 3D-day period and thereafter diligently prosecutes such cure to completion. 10.1.4 Insolvencv. 10.1.4.1 The making by Tenant of any general arrangement or assignment for the benefit of creditors; 10.1.4.2 Tenant becomes a "debtor" as defined in 11 U.S.C. Sec. 101 or any successor statute thereto (unless, in the case of petition filed against Tenant, the same is dismissed within 60 days); 14 1- ).J> 10.1.4.3 the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within 30 days; or 10.1.4.4 the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where such seizure is not discharged within 30 days. 10.1.5 The discovery by Landlord that any financial statement given to Landlord by Tenant, any assignee of Tenant, any subtenant of Tenant, any successor in interest of Tenant or any guarantor of Tenant's obligation hereunder, and any of them, was materially false. 10.2 Remedies. In the event of any such material default or breach by Tenant, Landlord may at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default or breach: 10.2.1 Terminate Lease. Terminate Tenant's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default including, but not limited to, the cost of recovering possession of the Premises; expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorney's fees, and any real estate commission actually paid; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Tenant proves could be reasonably avoided; that portion of the leasing commission paid by the Landlord pursuant to the Paragraph of this Lease entitled: "Broker's Fee" applicable to the unexpired term of this Lease. 10.2.2 Keep Lease in Effect. Maintain Tenant's right to possession in which case this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord's rights and remedies under this 15 1-,ij Lease, including the right to recover the rent as it becomes due hereunder. 10.2.3 Other Remedies. Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state wherein the Premises are located. Unpaid installments of rent and other unpaid monetary obligations of Tenant under the terms of this Lease shall bear interest from the date due at the maximum rate then allowable by law. 10.3 Default bv Landlord. Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such 30- day period and thereafter diligently prosecutes the same to completion. 10.4 Late Charqes. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any other sum due from Tenant shall not be received by Landlord or Landlord's designee within ten (10) days after such amount shall be due, then, without any requirement for notice to Tenant, Tenant shall pay to Landlord a late charge equal to 6% of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a wavier of Tenant's default with respect to such overdue amount, not prevent Landlord from exercising any of the other rights and remedies granted hereunder. 11. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain, or sold under the threat of the 16 1-~~ exercise of said power (all of which are herein called "condemnation") during the term of this Lease, this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 25% of the land area of the Premises is taken by condemnation, Tenant may, at Tenant's option, to be exercised in writing only within ten (10) days after Landlord shall have given Tenant written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the rent shall be reduced in the proportion that the land area taken bears to the total land area of the Premises. Any award for the taking of all or any part of the Premises under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leaseholder or for the taking of the fee, or as severance damages; provided, however, that Tenant shall be entitled to any award for loss of or damage to Tenant's trade fixtures and removable personal property. In the event that this Lease is not terminated by reason of such condemnation, Landlord shall to the extent of severance damages received by Landlord in connection with such condemnation, repair any damages to the Premises caused by such condemnation except to the extent that Tenant has been reimbursed therefor by the condemning authority. Tenant shall pay any amount in excess of such severance damages required to complete such repair. 12. Broker's Fee. 12.1 Tenant is represented by Tracy Clark of Voit Commercial Brokerage. Landlord agrees to pay voit Commercial Brokerage a commission in accordance with Voit's Standard Schedule of Commissions attached hereto as Exhibit ~. Except as provided above, each party represents and warrants to the other parties that no brokers, finders, or other agents have been engaged or retained by them in connection with this transaction, and that no brokerage fee, finder's fee, or other commission is or may be due as a result of the parties entering into this lease agreement. 13. Estoppel certificate. 13.1 Tenant shall at any time upon not less than ten (10) days prior written notice from Landlord execute, acknowledge and deliver to Landlord a statement in writing 17 4~). '3 (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any, and (ii) acknowledging that there are not, to Tenant's knowledge, any uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of the Premises. 13.2 At Landlord's option, Tenant's failure to deliver such statement within such time shall be a material breach of this Lease or shall be conclusive upon Tenant (i) that this Lease is in full force and effect, without modification except as may be represented by Landlord, (ii) that there are no uncured defaults in Landlord's performance, and (iii) that not more than one month's rent has been paid in advance or such failure may be considered by Landlord as a default by Tenant under this Lease. 14. Severabilitv. The invalidity of any provisions of this Lease as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 15. Interest on Past-due Obliqations. Except as expressly herein provided, any amount due to Landlord not paid when due shall bear interest at the maximum rate then allowable by law from the date due. Payment of such interest shall not excuse or cure any default by Tenant under this Lease, provided, however, that interest shall not be payable on late charges incurred by Tenant nor on any amounts upon which late charges are paid by Tenant. 16. Time of Essence. Time is of the essence. 17. Additional Rent. Any obligations to pay money of Tenant to Landlord under the terms of this Lease shall be deemed to be rent. 18. Incorporation of Prior Aqreements; Amendments. This Lease contains all agreements respect to any matter mentioned herein. or understanding pertaining to any such of the parties with No prior agreement matter shall be 18 ~--,21 effective. This Lease may be modified in writing only, signed by the parties in interest at the time of the modification. Except as otherwise stated in this Lease, Tenant hereby acknowledges that neither the Landlord nor any employees or agents of any of said persons has made any oral or written warranties or representations to Tenant relative to the condition or use by Tenant of said Premises and Tenant acknowledges that Tenant assumes all responsibility regarding the Occupational Safety Health Act, the legal use and adaptability of the Premises and the compliance thereof with all applicable laws and regulations in effect during the term of this Lease except as otherwise specifically stated in this Lease. 19. Notices. Any notice required or permitted to be given hereunder shall be in writing and may be given by personal delivery or by certified mail, and if given personally or by mail, shall be deemed sufficiently given if addressed to Tenant or to Landlord at the address noted below the signature of the respective parties, as the case may be. Either party may by notice to the other specify a different address for notice purposes. A copy of all notices required or permitted to be given to Landlord hereunder shall be concurrently transmitted to such party or parties at such addresses as Landlord may from time to time hereafter designate by notice to Tenant. 20. Waivers. No waiver by Landlord or any provision hereof shall be deemed a waiver of any other provision hereof or of any other provision hereof or of any subsequent breach by Tenant of the same or any other provision. Landlord's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Landlord's consent to or approval of any subsequent act by Tenant. The acceptance of rent hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of any provision hereof, other than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. 21. Recordinq. Either Landlord or Tenant shall, upon request of the other, execute, acknowledge and deliver to the other a "short form" memorandum of this Lease for recording purposes. 19 ~~:<5 22. Holdinq Over. If Tenant, with Landlord's consent, remains in possession of the Premises or any part thereof after the expiration of the term hereof, such occupancy shall be a tenancy from month to month upon all the provisions of this Lease pertaining to the obligations of Tenant, but all options, rights of first refusal, and any obligation of Landlord to transfer title to Tenant, if any, granted under the terms of this Lease shall be deemed terminated and be of no further effect during said month to month tenancy. 23. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 24. Covenants and Conditions. Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition, unless the context otherwise specifically provides. 25. Bindinq Effect; Choice of Law. Subject to any provisions hereof restricting assignment or sUbletting by Tenant, this Lease shall bind the parties, their personal representatives, successors and assigns. This Lease shall be governed by the laws of the State of California. 26. Subordination. 26.1 This Lease, at Landlord's option, shall be subordinate to any prior ground lease, mortgage, deed of trust, or any other hypothecation or security now or hereafter placed upon the real property of which the Premises are a part and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof. Notwithstanding such subordination, Tenant's right to quiet possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee or ground landlord shall elect to have this Lease prior to the lien of its mortgage, deed of trust or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust, or ground lease, whether this Lease 20 4-2.~ is dated prior or subsequent to the date of said mortgage, deed of trust or ground lease or the date of recording thereof. 26.2 Tenant agrees to execute any documents required to effectuate an attornment, a subordination or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be. Tenant's failure to execute such documents within 10 days after written demand shall constitute a material default by Tenant hereunder, or, at Landlord's option, Landlord shall execute such documents on behalf of Tenant as Tenant's attorney-in-fact. Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney-in-fact and in Tenant's name, place and stead, to execute such documents in accordance with this subparagraph. 27. Attornev's Fees. If either party brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, on trial or appeal, shall be entitled to his reasonable attorney's fees to be paid by the losing party as fixed by the court. 28. Landlord's Access. Landlord and Landlord's agents shall have the right to enter the Premises at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, Lenders, or Landlord, and making such alterations, repairs, improvements or additions to the Premises as Landlord may deem necessary or desirable. Landlord may place on or about the Premises any ordinary "For Sale" signs of "For Lease" signs at any time during the last 120 days of the term hereof, all without rebate of rent or liability to Tenant. 29. Auctions. Tenant shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction other than as specifically sanctioned by the Use provisions of this Lease upon the Premises without first having obtained Landlord's prior written consent. Notwithstanding anything to the contrary in this Lease. Landlord shall not be obligated to exercise any standard of reasonableness in determining whether to grant such consent. 21 4-)..1 30. Siqns. Tenant shall not place any sign upon the Premises without Landlord's prior written consent except that Tenant shall have the right, without the prior permission of Landlord to place ordinary and usual for rent or sublet signs thereon. 31. Merqer. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, or a termination by Landlord, shall not work a merger, and shall, at the opinion of Landlord, terminate all or any existing subtenancies or may, at the option of Landlord, operate as an assignment to Landlord of any or all of such subtenancies. 32. Consents. Except for the Paragraph of this Lease entitled "Auctions", wherever in this Lease the consent of one party is required to an act of the other party such consent shall not be unreasonable withheld. 33. Guarantor. In the event that there is a guarantor of this Lease, said guarantor shall have the same obligations as Tenant under this Lease. 34. Ouiet Possession. Upon Lease agreeing to paying the rent for the Premises and observing and performing all of the covenants, conditions and provisions on Tenant's part to be observed and preformed hereunder, Tenant shall have quiet possession of the Premises for the entire term hereof subject to all of the provisions of this Lease. The individuals executing this Lease on behalf of Landlord represent and warrant to Tenant that they are fully authorized and legally capable of executing this Lease on behalf of Landlord and that such execution is binding upon all parties holding an ownership interest in the Premises. 35. Securitv Measures. Tenant hereby acknowledges that the rental payable to Landlord hereunder does not include the cost of guard service or other security measures, and that Landlord shall have no obligation whatsoever to provide same. Tenant 22 1/ - ))' assumes all responsibility for the protection of Tenant, its agents and invitees from acts of third parties. 36. Easements. Landlord reserves to itself the right, from time to time, to grant such easements, rights and dedications that Landlord deems necessary or desirable, and to cause the recordation of Parcel Maps and restrictions, so long as such easements, rights, dedications, Maps and restrictions do not unreasonably interfere with the use of the Premises by Tenant. Tenant shall sign any of the aforementioned documents upon request of Landlord and failure to do so shall constitute a material breach of this Lease. 37. Authoritv. If Tenant is a corporation, trust, or general or limited partnership, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said entity. (End of Page. Next Page is Signature Page) 23 ij-~1 Signature Page to Lease between the Redevelopment Agency of the city of Chula vista and West Team, Inc., dba Budget Rent A Car dated December 13, 1994 Landlord and Tenant have carefully read and reviewed this lease and each of term and provision contained herein and, by execution of this lease, show their informed and voluntary consent thereto. The parties hereby agree that, at the time this lease is executed, the terms of this lease are commercially reasonable and effectuate the intent and purpose of Landlord and Tenant with respect to the Premises. Dated: West Team, Inc., a California corporation, dba Budget Rent A Car ,1994 by: [Print Name and Title] Address for Notice: Redevelopment Agency of the City of Chula Vista, a public body, corporate and politic , 1994 by: Shirley Horton Chairwoman Address for Notice: 276 Fourth Avenue Chula Vista, CA 91910 Attn: Director of Community Development Attest: Beverly A. Authelet, City Clerk Approved as to form: Bruce M. Boogaard Agency Attorney ~~3o 24 Exhibit A Legal Description of Subject Property [TO BE INSERTED] 4~ 3/ 25 M:\HoMe\Attorney\RDA-BRAC.Lea Exhibit B Schedule of Commissions [TO BE INSERTED] 4 - ~i., 26 . J!e.!!.,_ EXHIBIT "C" Schedule of Commissions LEASE COMMISSIONS I. Gross Lease: 1st year ............... 6% 01 the rent 2nd year.. . . . , . . , . . . . .. 6% of the rent 3rd year. . . . . . . . . . . . . . . 5% of the rent 4th year . . . . . . . . . . . . . .. 4% 01 the rent 5th year .................... 4% of the rent 6th through 10th year. . . . . . . . . . . 3% of the rent 11th through 30th year. . . . . . . . " 2% 01 the rent Balance 01 the term ............ 1% of the rent II. Net Lease: 1st year. . . . . . . . . . . . . .. 7% 01 the rent 2ndyear .............. 7% of the rent 3rd year............... 6% of the rent 4th year ............... 5% 01 the rent 5th year ..................... 5% of the rent 6th through 10th year. . . . . . . .. 3Vt% 01 the rent 11 th through 30th year . . , . . . .. 2'12% of the rent Balance 01 the term ............ 1% 01 the rent III. Commencement of Rent: For the purpose of computing the amount of the commission due lor a lease transaction, the first month the base or minimum rental commences shall be deemed to be the first month of the lease. IV. Percentage Rental: As to any leases which contain a percentage rent clause. Owner shall pay a commission on the percentage rent at the same rate as applicable lor the minimum guaranteed rent as above provided. This commIssion shall be due and payable within fifteen days after the Tenant's final payment and accounting of percentage rental for the preceding lease year. At the end 01 the third full lease year there shall be a settlement as to any commission due on percentage rental lor the remainder of the origInal term of the lease calculated upon the assumption that the percentage rental for each year of the remainder of the term will be the same as the percentage rental for the third tulllease year. V. Base or MInimum Guaranteed Rental Increases: As to any leases which contain a base or minimum rental Increase clause, of which said rental Increase is to be based upon a Consumer Price Index, Cost of Uvlng Index or any other method or Index of which said Increases are undeterminable at the time when lease commissions are due, then Owner, for the purpose 01 computing the amount 01 commission due for said undeterminable rental increases, will pay a commission based upon a 3% annualized rental Increase at the same rate as that applicable for the base or minimum guaranteed rental as provided above. If said Base or Minimum Guaranteed Rental Increase Clause contains a provision for an Increase not to be less than, nor more than a certain amount or percentage Increase. then Owner will pay the commission based upon the lesser of the two Increases. VI. Extension 01 Lease or Addltlona' Space Taken: Should the term of the lease be extended or the Tenant occupy additional space In the same building or same complex 01 buildings. whether by virtue of provisions in the lease or through subsequent modfflcation of the lease to provide same, then a leasing commission shall be paid at such time as said term Is extended or said additional space Is occupied. Said leasing commission shall be computed in accordance with the provisions of this Schedule and by using the rates applicable as if the Initial term of the lease had included said extension period and/or in the case Tenant occupies additional space, by using the rates applicable for new occupancy. VII. Purchase 01 Leased Property By Tenant: Should Tenant, his successor or assignee purchase the leased property, or any part thereof, during the term of the lease, any extensions thereof or within 1 eo days after expiration thereof, then a sales commission shall be paid at such time as the purchase is effected. Said sales commission shall be computed as set forth herein below, less the amount of the paid-up lease commissions relating to the portion of the lease extending beyond the effective date 01 said purchase, provided, however, that there shall be no rebate In the event the sales commission be less than the paid.up lease commission relating to that portion of the lease extending beyond the effective date of said purchase. VIII. Build to Suit/New ConstructlonfTenant Improvements: Where the negotiation of a.lease Is the originating cause of a build to suit, new construction, or tenant Improvements In excess of $1 00,000, each commission rate for aJlleases pertainIng to the first ten years of the term 01 the lease shall be Increased by 1Ji%. IX. Month-to-Month Tenancy: Commission shall be 50% of the flrst month's rent, but In no event, less than $1,000.00, payable upon execution 01 the month-te-month rental agreement In the event a month-to-month tenant subsequently executes a lease, either direct with Owner, Lessor, Sublessor or through Broker, the Broker shall receive a leasing commission In accordance with provisions of this Schedule, due upon execution of the lease. X. Subleases: The commission shall be computed and payable In the same manner as a lease, but in no event less than $1,000.00. In the event property is offered as a sublease, and In lieu of a sublease with 8 new tenant, the Lessee (Sublessor) Is relieved of his lease obligation alther through en assignment of the leasa or a cencanatlon of tha lease, then Broker shall be paid a commission based on the amount of actual rental relief, net or gross, accruing to Lessee (Sublessor), and in accordance with the rates and provisions of this Schedule, but In no event less than $1,000. ~-g:3 II - --~ ore"". SALE & EXCHANGE COMMISSIONS I. Unimproved Property (acreage substantially lacking amenities necessary for urban development, such as utilities, and/or zoning): 10% of the gross sale price. II. Improved Property: 6% 01 the gross sale price. III. Option to Purchase, Arst Right of Refusal to Purchase: Owner shall pay Broker a sales commissIon In accordance with this Schedule on the price paid for said option or First Right of Refusal and for any extensions thereof. This commission shall be paid upon receipt by Owner of any such payment(s). In the event such an option or First Right Is exercised, Owner shall also pay Broker a sales commission on the gross sales price of the Property In accordance with this Schedule (less any commission previously paid by Owner to Broker for such option payments, provided said option payments were applied to the purchase price). IV. Exchange: Each party to the exchange shall pay a full commission based upon the type and fair market value of the properties exchanged by It In accordance wfth this, Schedule. Fair Market Value of the properties shall be that as set forth in the exchange documents. V. Joint Venture: Should a joint venture be effected in lieu of a sale, a full commission shall be paid based upon the Fair Market Value of the property as determined for purposes of the joint venture agreement. VI. Business Opportunity: 10% of the total consideration. PAYMENT OF COMMISSIONS I. Lease Commission: Commissions shall be due and payable on the execution of a lease by Owner and Tenant, Broker is hereby authorized to deduct its commission pursuant to the foregoing schedule from funds held in its trust account; the Owner shall pay any differences In cash in accordance herewith. II. Sales & Exchange Commission: Commissions shall be paid through Escrow upon the Closing thereof; absent an escrow, commissions shall be paid upon recordation of a deed; in the event of a contract for deed, a commission shaJl be paid upon execution of the contract If a joint venture agreement is effected in lieu of a sale, the commissIon shall be paid upon execution of the joint venture agreement. MISCElLANEOUS PROVISIONS I. In the event of any action by Broker to recover a commission or other payment due It as a result of or arising out of this Schedule, or as a result of any facts based upon or Involving this Schedule, the prevailing party shall be entitled to recover from the non-prevailing party or parties such prevailing party's attorney's fees, court costs, expert witness fees and other expenses related to such attempts to recover, Including such fees, costs and expenses on appeal. In the event any commissions or other payments are due and owing hereunder to Broker and not promptly paid when due and owing, they shall, from the date of such default bear interest at the maximum rate of Interest to whfch the parties could contract In writing for the forbearance of money under California and Federal law on the date 01 such default. II. While this schedule Is not affected thereby, Jt is understood that there are certain instances whereby a higher rate may be charged. The provisions hereof are subject, however, to the terms and provisions of any Usting Agreement or other agreement to which this schedule may be attached and which Is executed by the parties hereto. III. The undersigned hereby acknowledges receipt of a copy of this schedule and further agrees that It shall be binding upon the heirs SUCcessors and assigns of the undersigned. The term Owner, when used herein shall be deemed to mean the owner of the property, a lessee under a ground lease, and any lessee desiring to effect subleases Note: If the property covered by this Schedule of Commissions is owned solely, jointly or by a corporation, each individual signing represents and warrants that he is authorized to execute and deliver this document and to bind sald owners or such other owners or corporation having any interest In the property. Approved by: "OWNER" Accepted by: "BROKER" VOlT CCMME~CIAL BROr<EAAGt=: Property Address: Address; 660 Bay Blvd.,Ste. 2~ 0 Chula Vista, California 91910 Telephone: Telephone: (619) 498-4560: (619) 498-4567 By: By: Name Printed: Name F'rinted: T1tie: Title: Date: Date: This schedule I. for use only In transactions In which Volt CommercIal Brokerage Is Involved and Is not to be distributed toothe... ~ _ 3~ RESOLUTION 1443 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE CHAIRWOMAN TO EXECUTE A LEASE FOR THE PROPERTY LOCATED AT 753 BROADWAY WITH BUDGET RENT A CAR WHEREAS, The Redevelopment Agency of the City of Chula Vista, a political subdivision of the state of California (Agency). is charged with elimination of blighting influences in the City; and, WHEREAS, Budget Rent A Car contacted City staff seeking to lease the Agency owned Property at 753 Broadway; and, WHEREAS, The Redevelopment Agency has arrived at an agreement with Budget Rent A Car for lease of the property at a fair market rate; and, WHEREAS, Health and Safety Code Section 33431 permits Agency property to be leased without public bidding after a public hearing. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve as follows: Section 1. The hearing required by Health and Safety Code Section 33431 was duly called, noticed, and all public protests, if any, to the proposed lease were made and received at said hearing. Section 2. The Redevelopment Agency does hereby find that the lease of the property with Budget Rent A Car will reduce blighting influences in the Southwest project area as an interim use and is in the best interests of the City. Section 3. The Redevelopment Agency does hereby find that the lease, on file in the office of the Secretary to the Redevelopment Agency, known as document RACO-34-94, is exempt from the review under the California Environmental Quality Act. Section 4. The Redevelopment Agency does hereby find that the consideration to be paid by Budget Rent A Car for use of the property is not less than fair market value. Section 5. The Chairwoman is hereby authorized to execute said lease with West Team, Inc., a California Corporation, dba Budget Rent A Car, in substantially the same form presented thereto, in a final form to be approved by the Agency Counsel, upon receipt of a signed copy thereof from Budget Rent A Car. PRESENTED BY: APPROVED AS TO FORM BY: CA-.~ ~ Chris Salomone Community Development Director IBBIC:IWP51 IAGENCYIRESOSI 753BROAO.RESI 4-35 ~ {2Ct'jE; Clank! 4-J~