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Report to the City Council Merger of the Northwest Redevelopment Projects, and Amendment No. 4 to the Villa-Parke Redevelopment Plan October 25, 2010. Merger Action . Approve Resolution adopting Negative Declaration.
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Report to the City CouncilMerger of the Northwest Redevelopment Projects, andAmendment No. 4 to the Villa-Parke Redevelopment PlanOctober 25, 2010
Merger Action • Approve Resolution adopting Negative Declaration. • Postpone action to allow for additional analysis on the possible flow of tax increment dollars.
Report to the City Council • Prior to amending a Redevelopment Plan, California Community Redevelopment Law (CCRL) requires the preparation of a Report to City Council.
Purpose of the Report • Documents blight conditions on a parcel basis. • Identifies projects and programs designed to eliminate blight. • Proposes an increase to the Villa-Parke tax increment cap commensurate with projects and programs.
Findings of the Report • Analyzed all parcels (1,214) in the five N.W. Redevelopment Project Areas. • 533 parcels exhibited at least one physical condition of blight. • All parcels exhibited at least one economic condition of blight. • CCRL states that the mere existence of blighted conditions is not sufficient to justify an amendment to a redevelopment area.
How Much Blight is Enough? • Per CCRL the area must have more than just physical and economic blight to justify amending the tax increment cap. • Blight must also be so problematic that it creates special needs that can only be addressed by the use of redevelopment dollars.
Blight Conditions Summary • Further analysis of the blighted parcels that have significant remaining blight resulted in 89 that meet the CCRL definition as having a severe combination of unsafe or unhealthy conditions. • 41 of the 89 parcels are located within Villa-Parke Redevelopment Project Area. • The Report concluded that the significant remaining blight cannot be alleviated unless the Villa-Parke tax increment cap is amended.
Villa-Parke Amendment • Current cap is $20.4 million. • Current cap will be reached by end of Calendar Year 2010. • Cannot collect tax increment once financial cap is reached. • Propose an increase of $44.6 million resulting in a new cap amount of $65 million.
Cap Amendment • Necessary to address significant remaining blight. • After subtracting $16 million mandated expenses, the Commission will receive approximately $28 million for projects and programs.
Projects and Programs Business Improvement- $11 million • Façade improvements. • Business attraction/retention. • Business rehabilitation Housing Rehabilitation- $9.7 million • Replacement of Un-permitted construction. • Replacement of unsafe stairs and decks. • Installation of bollards at gas meters.
Projects and Programs Infrastructure- $10 million • Reconstruction of streets, curbs, gutters, sidewalks (as needed). • Streetscape improvements along Fair Oaks Blvd., Orange Grove Blvd., and Maple St. • Upgrades to water, sewer, and drainage system throughout (as needed).
Benefits of the Tax Increment Cap Increase • The Tax Increment Cap Amendment will help the Villa-Parke Project Area, which has the most remaining blight out of the five project areas. • Without an increase to the Tax Increment Cap, there will not be enough money to address the $30 million plus worth of significant remaining blight.
Conclusion Staff Recommendation: • Commission to approve the resolution transmitting the Report to City Council. • Commission and Council to adopt the Initial Study and Negative Declaration. • Commission and Council to approve a resolution adopting Amendment No. 4 to the Villa-Parke Redevelopment Plan. • City Council conduct the first reading of the ordinance for the Villa-Parke Amendment. • Continue action on the Merger until December 6, 2010.
Sample Blighted Properties • Liquor store noted by Police Department as source of several crimes (AB) • Unsafe bars on windows (BAR)
Sample Blighted Properties • Multiple loose wires (EH) • Boarded-up windows (BW) • Unsafe bars on windows (BAR)
Sample Blighted Properties • Graffiti indicative of high crime (G) • Electrical hazards (EH) • Boarded-up windows (BW) • Unsafe bars on windows (BAR)
Sample Blighted Properties • Sealed-up windows (BW) • Un-permitted room addition (ANPA)