The URL can be used to link to this page

Home My WebLink AboutRedevelopment Agency - 331 I RESOLUTION NO. 331 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APPROVING THE PRELIMINARY REPORT FOR THE PROPOSED SOUTHEAST COASTAL REDEVELOPMENT PROJECT AND AUTHORIZING SUBMITTAL OF THE PRELIMINARY REPORT AND THE DRAFT REDEVELOPMENT PLAN FOR THE SOUTHEAST COASTAL REDEVELOPMENT PROJECT WHEREAS, June 12, 2001, the Planning Commission of the City of Huntington Beach ("Planning Commission") adopted a revised Preliminary Plan for the Southeast Coastal Redevelopment Project by Resolution No.1563; and the Redevelopment Agency of the City of Huntington Beach ("Agency") approved the Preliminary Plan by Resolution No. 322 on July 16, 2001; and Section 33344.5 of the California Community Redevelopment Law (California Health and Safety Code Sections 33000 et. seq.) provides that the Agency shall prepare and send to each affecting taxing entity a Preliminary Report which shall include the j information contained in Section 33344.5; and A Preliminary Report has been formulated and received by the Agency in the form submitted herewith; and Section 33346 of the California Community Redevelopment Law provides that before the proposed Redevelopment Plan is submitted to the City Council for j consideration, it shall first be submitted to the Planning Commission for its report and recommendation concerning the Redevelopment Plan and its conformity to the City's General Plan; and The Agency desires to make the Draft Redevelopment Plan to be available to the affected taxing agencies for information. NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach accepts the Preliminary Report to the.Southeast Coastal Redevelopment Project as submitted herewith and attached hereto as Exhibit A; and The Agency accepts the Draft Redevelopment Plan for the Southeast Coastal Redevelopment Project as submitted herewith and attached hereto as Exhibit B; and Hereby the Agency directs that the "Preliminary Report to the Southeast Coastal Redevelopment-Project" and the "Draft Redevelopment Plan for the Southeast Coastal Redevelopment Project" to be transmitted to the affected taxing entities, as well as the Planning Commission for its report and recommendation pursuant to Section 33346 of the California Community Redevelopment Law. 02 reso/dips/F:\rs g�h unt be h\staffreport s&reso\reso-pre I im&drpm PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof on the 22nd day of January 2002 14 hairman ATTEST. 9 Secretary '_OZ-oVoz Cam. Agency Attorney Iq off, REVIEWED AND APPR VED: 1NIT TED AND APPROVED: Executive Director Deputy Executive Director i, i F:\rsg\huntbch\staffrepons3reso\reso-preIimXdrpn ' Res.No.331 Exhibit A i Preliminary Report for the Proposed Southeast Coastal Redevelopment Project. Res.No.331 Exhibit A' Southeast Coastal Redevelopment Project Preliminary Report January 9, 2002 Redevelopment Agency of the City of Huntington Beach 2000 Main Street, 5P Floor Huntington Beach, Califomia 9264.8 Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana,California 92705 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com Res.No.331 Exhibit A Table of Contents Introduction .:........................................................................................ i Plan Adoption Process.......................... "' Reasons for Selection of the Project Area.......................................A-1 Location and Socioeconomic Profile..................................................................A-3 A Description of the Physical and Economic Conditions Existing in the Project Area...........................................B-1 Legal Context of Blight........................................................................................B-1 Blighting Conditions in the Project Area.............................................................13-2 A Determination as to Whether the Project Area is Predominantly Urbanized .................................................................C-1 A Preliminary Assessment of the Proposed Method of Financing, Including the Economic Feasibility and the . Reasons for the Division of Tax Increment......................................D-1 Projected Tax Increment Revenues...................................................................D-3 Economic Feasibility Analysis.......................................................................: Reasons for the Provisions of Tax Increment....................................................D-8 A Description of the Projects Proposed by the Agency................... E-1 A Description of How the Proposed Projects Will Improve and Alleviate Blight............................................................ F-1 Appendix 1 Photo Survey Res. No.331 Exhibit A Introduction The Redevelopment Agency of the City of Huntington Beach ("Agency") has prepared a draft Redevelopment Plan ("Plan") for the proposed Southeast Coastal Redevelopment Project ("Project") to upgrade and revitalize a 172-acre area in southeast Huntington Beach. The proposed Southeast Coastal Redevelopment Project Area ("Project Area") is generally located north of Pacific Coast Highway, south of Hamilton Avenue, east of Newland Street, and west of Magnolia Street, and includes the AES Power Generating Facility, the Ascon Landfill site, a fuel oil storage facility (tank farm), and other industrial as well as open space uses. If adopted by the City of Huntington Beach City Council ("City Council"), the Plan would permit the Agency to undertake certain redevelopment actions over a 30-year period. This Preliminary Report ("Report") has been prepared by the Agency in accordance with Section 33000 et seq. of the Health and Safety Code of the State of California ("Redevelopment Law"). Consistent with Section 33445.5 of Redevelopment Law, this Report describes the needs for and implications of the proposed Plan. Its contents are.divided into the following sections: Section A: The Reasons for the Project Area. Section B: A Description of the Physical and Economic Conditions Existing in the Project Area. Section C: A Determination as to Whether the Project Area is Predominantly Urbanized. Section D: A Preliminary Assessment of the Proposed Method of Financing, Including the Economic Feasibility and the Reasons for the Division of Tax Increment. Section E: A Description of the Projects Proposed by the Agency. Section F: A Description of How the Proposed Projects Will Improve and Alleviate Blight. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT � kB �'qry .J k (";. �.�'s,'i la 0"i" s� ®� re"'w0 ,x�nd�,lsi�+ffg„•r f+^ �a�rvier ��`, �'A v • �a • • ., � •� „q �@ 'i�,�,�1� ar1:A" ��1� `�!'yLB�y' �»'fi © 4 �f j� t.,+��'r��° rl � °'y S, �,�j�r• r�.' f • : " w� ai Me . f u P pal q 1 ¢. �**} r t rvv; y� • " rx a w,es,l3NNVHJ 1Z13 7111r' a ,at r' c c.'p• i � a S.r ! , ..L., ,:�, .ixf dK • a^. `iC' Ls. .Sti > lyQe iF 1 lye s 'Fy' 1 �jt ` '. � �r 9 Jlki �� ;.f�_��x'^ � �^ 4`� $° .#d-ate'*..yx^Yr�;ry • • �;`� p. ,,�ag1��q..��'.+.' q�9"�' ,'i.�'.±� 7; �4�1 ;WfCy^f�T��(F�r��Y��,v )ix��•�C�+'".�Llr� .� • a �.�.' �, � laV��iS,,wL'�A:io�+• S'�i f� `�_ytr -Lw �r�`.J ��kt;'Y�l 1r�' �«+-!r°yfrq�j , LF,m , '`- '� L'�'S"�`4�r`,'�,� � i"',,��, . �03'�",�°'yam•—• a' 4�" ''a,X1 r�. Ss:i'.tu ,'v r-. i � r r� t,iQ,. 1" "7 ;��y a s'y •' ji ..r �,t' �.-�' x• i ..y.4,.7f r<.: dt �'" X+t''' i sa:irh`. xJJ :ds "'"',�a `f F iy - ...�, • • f.Y'1� 7l5 S"�n � M T ��..y{ �i's�,j/�` '1f .y .1'..•. [rT �R y�+r�j ''V „� [[[4• 5�..�aydp, � r '� :•� .q t>x7rx �+f "�': - F p'tr��_4k�Q i yeti S r' Jaya - r ;•s �'tw i,.�uo.,.�„ • F"�, rr�?�! , v, .,t'"�(j.��>;L�r�'�,�*�'U" :f .�p„� 'Y s'C �6�•t /!ry�rx ul��''v;:c>ht. • i��3Sv R�� '.zw�,,. • Rsr.�`•�' '.a^". ..� `�v°#'f"#e�.y�5 D. � { �(.��rxP.�+,4 n � • n A. .�ii�y ,d�(L '�'..d w�l � , � � � .��[ !•: >fTl � .[`p�gt,�a i3'Fixz,; ,� , . • 1!r Mn, l..:i h+tr �,�}p� +� d,j♦i F�. A,4�. f r 9- � a 4d :1 r ,✓:1•i, f1IfP'•',��tlir��1� � r � r��a�.�.� °'n r <rn d .µ tt t� y. ,,: 1 i�tV: z• R� a , ....}>7rd46�. � .,�y ql�c � �s r •.a-""` Res.No.331 Exhibit A Plan Adoptio n Process This Report is one of several documents Redevelopment Law requires the Agency to prepare in the course of the Plan adoption process, and is intended to aid the general understanding of the proposed Plan. Over the next several months, the City Council, Agency, Planning Commission, affected taxing agencies, and the community at large will have an opportunity to study and comment on the proposed Plan. Upon the completion of a final proposed Plan, the City Council and Agency will host a noticed joint public hearing to receive additional input on these impacts. In the meantime, Agency staff will continue the public dialogue with the community and affected taxing agencies. Upcoming meetings and actions regarding the proposed Plan include the following: DATE ACTION PARTIES Jan.22,2002 Receive the Draft Redevelopment Plan (DRP) and Redevelopment Preliminary Report (PR) and by resolution authorize Agency transmittal of the DRP to the Planning Commission and the DRP& PR to affected taxing agencies. Agency will also consider a resolution to approve the Draft Owner Participation Rules DOPR. Jan.23,2002 Draft EIR (45 day public review period required). The Public Review DRP,PR,and DOPR are available for review. Feb.11,2002 Third Community Workshop on DRP, Draft EIR and Draft Council Committee, Owner Participation Rules Community,Staff March 12,2002 Planning Commission Study Session on Final EIR and Planning Commission Redevelopment Plan April 1,2002 Date set for Joint Public Hearing - Report to the City RDA/Council Council Considered April 9,2002 Planning Commission Considers Recommendation on Planning Commission Final EIR and Redevelopment Plan;Considers Report and Recommendation on Plan April 15,2002 City CounciVRDA Public Hearing Notices Published/Mailed Staff to Project Area residents, property owners, business owners,and others. April 29,2002 Fourth Community Workshop on Draft Redevelopment Council Committee Plan,EIR and Report to the City Council May 20,2002 JOINT PUBLIC HEARING RDA/Council June 3,2002 Consider Responses to Written Objections; Consider City Council Approval of Final Owner Participation Rules,Conduct First Reading of Adopting Ordinance June 17,2002 Conduct Second Reading of Adopting Ordinance City Council Dec.2003 First Tax Increment Received ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -III- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A 'MIS Reasons for Selection of the Project Area The Agency is proposing the Project Area primarily to address two significant blights on the community: 1) the lingering environmental impacts of the closed Ascon Landfill, and 2) achieving the eventual replacement of the AES Generating Facility with a lower scale, contemporary, and more efficient power plant, or another use if and when the plant is no longer needed. With redevelopment tools for the Project Area, the Agency is seeking to create financial mechanisms that will provide more funding that can be pledged specifically to these and other redevelopment objectives, resulting in and overall enhancement of the physical, economic, and environmental quality and character of the Project Area and surrounding areas. Over the past several years, the City of Huntington Beach ("City") has been actively pursuing the remediation and reuse of the contaminated Ascon landfill site, located at the southwest comer of Magnolia Street and Hamilton Avenue. Between 1938 and 1984, the 38-acre Ascon Landfill was an active dumpsite. In the early years of operation, much of the toxic waste came from oil drilling operations, including drilling muds, wastewater brines,.and other drilling wastes. According to the Department of Toxic Substances Control ("DTSC"), toxic wastes later included chromic acid, sulfuric acid, aluminum slag, fuel oils, and styrene. Since the Landfill closed, two developers have gone bankrupt (Aston Properties, Inc. in 1989 and NESI Investment Group in 1993) trying to remediate the site, which could cost at least $35 million. According to the DTSC and the current property owner (Signal Mortgage Company), not all of the parties responsible for the contamination are willing or capable of paying for the cleanup costs. Six of the responsible parties have not agreed to participate in a cleanup solution orchestrated by DTSC; development of the site without full recovery of the cleanup costs could render the site undevelopable. Section B of this Report contains a detailed analysis of the development feasibility without recovery of the cleanup costs. With redevelopment, the Agency could facilitate the timely removal and reuse of the Ascon Landfill site. The City has also been seeking to reduce the environmental and health impacts of the AES Generating Facility, which despite current retooling of two of the bumer units, is inefficient and generates as much as twice the amount of air pollutants as, modern facilities of the same size according to City staff. _However, AES (owner and operator of the power plant) cannot afford to invest in a new facility at this time after having invested approximately $150 million in interim improvements necessary to expand capacity to meet the State's energy crisis of the past summer. State energy policy also prevents AES from demolishing a ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEAC JANUARY 9,2002 -A-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A peaker unit, the most inefficient and seldom used generator on site. According to Bill Workman, Assistant City Administrator, a visible yellow plume is released as the pecker unit is operating. Due to the recent energy .crisis and Air Quality Management District (AQMD) pollution credits from other industrial operators, the AES Facility continues to remain operational. Over time, though, construction of new and more efficient power plants and tightening of the emission credit supply through the AQMD's efforts will mean older plants like the AES facility will need to be demolished and rebuilt to remain viable. However, with the recent investment of$150 million and . the uncertain future of the energy market, AES cannot commit to a specific timeframe to replace the existing facility. The lingering presence of the Ascon Landfill and the aging AES Generating Facility are believed to be factors why property values in the greater southeast Huntington Beach neighborhoods are lower than other coastal locations in the City. RSG's analysis of sale prices of single-family residences for the year 2001 revealed that the properties closer to the AES Facility and Ascon Landfill had considerably depreciated property values as compared to other properties within a half-mile of the coastline. On average, the median home price of single-family homes nearest the Project Area is $395,000, which is 22.5% less than the median_ home price of single-family homes elsewhere along the coast in Huntington Beach. Due to the inability of property owners to independently address physical, economic, and.environ mental conditions in this area, the Agency is proposing the Plan as an .aid to revitalizing the Project Area and the greater southeast Huntington Beach area. The draft Plan contains a series of redevelopment goals that address the City's long-term objectives for the AES Generating Facility and the Ascon Landfill, as well as other improvements to change the Project Area's detrimental affect on the southeast area to a more beneficial one. The following goals are proposed in the draft Plan: ■ To assist with screening, design, or environmental improvements to mitigate impacts on adjoining neighborhoods and environmentally sensitive areas associated with modernization and reconstruction of the AES power generating plant; ■ To advance the cleanup of environmentally contaminated properties; ■ To facilitate the reuse•of other Project Area properties including the Edison and tank farm properties, by monitoring and assisting hazardous material cleanup activities and ensuring that any ultimate development is compatible with surrounding neighborhoods and properties; ■ To facilitate the protection and restoration of environmentally..sensitive wetlands in connection with proposed redevelopment activities; ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEAC JANUARY.9,2002 A-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A ■ To permit the Agency to assist with park and trail improvements if any Project Area properties are designated for such uses; ■ Undertake public improvements in, and of benefit to, the project area, such as streets, flood control facilities, and other public facilities; ■ To ensure that Project Area revenues are pledged to projects that directly benefit the area, and that the Project Area remains separate and distinct from the Agency's existing Huntington Beach Redevelopment Project Area; ■ To restrict the use of eminent domain to any non-fee ownership interests such as oil and gas leases; Eliminating blight and environmental deficiencies in the Project Area; ■ Assembling of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area; ■ Replanning, redesigning, and developing properties, which are stagnant or improperly utilized; and ■ Increasing, improving, and preserving the community's supply of housing affordable to very low, low, and moderate income households. , Location and Socioeconomic.Profile The Project Area is located within the boundaries of the City of Huntington Beach, Orange County, California. The City is located in west Orange County, and is the third largest city in the County,with a population of 189,594 persons, according to the 2000 Census. The City incorporates a total of 27.7 square miles (approximately 17,700 acres)within its boundaries, and is adjoined by the City of Seal Beach to the northwest, the City of Westminster to the north, the City of Fountain Valley to the northeast, the Cites of Costa Mesa and Newport Beach to the east, and the Pacific Ocean to the south and west. The proposed Project Area is located in the southeastern part of the City, near the Pacific Ocean and southeast of downtown. The Project Area is generally bordered by Pacific Coast Highway, Newland Street, Hamilton Avenue and Magnolia Street, and is approximately 172 acres in size, or 1.0% of the entire City. In addition to the AES Generating Facility and the Ascon Landfill, the Project Area includes the Edison Pipeline and Terminal Company fuel oil storage facility on Magnolia Avenue, another fuel storage facility immediately north of the AES facility, smaller industrial uses along Edison Way, and open space and flood control uses. No residential uses exist in the Project Area. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEAC JANUARY 9,2002 A-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A R A Description of the. Physical and Economic Conditions Existing in the Project Area The Project Area contains both physical and economic blighting conditions that necessitate the creation of the Project. Conditions in the Project Area include: 1) Unsafe/Unhealthy Buildings; 2) Factors Hindering the Economically Viable Use of Lots; 3) Incompatible Uses; and 4) Impaired Investments. This Section of the Report describes the preliminary findings of blight in the Project Area. Legal Context of Blight Sections 33030 through 33039 of Redevelopment Law describe conditions that constitute blight in a redevelopment project area. A blighted area is one that necessitates the creation of a redevelopment project area; because the combination of conditions in an area constitute a burden on the community, and cannot be alleviated by private enterprise, governmental action, or both. A project area must have both physical and economic blighting conditions, as defined in Sections 33031(a)and (b), respectively: Physical blight includes the following: 1) Buildings in which it is unsafe or unhealthy for persons to live or work that can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. 2) Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots that can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -B-1 - SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A 3) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of a project area. 4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. Economic blight includes the following: 1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes. 2) Abnormally high business vacancies, abnormally .low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. 3) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other_ lending institutions. 4) Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. s) A high crime rate that constitutes a serious threat to the public safety and welfare. Section 33030(c)of the Redevelopment Law also states that a blighted area may be one that contains inadequate public improvements, facilities, or utilities when other blighting conditions are present. E�lllitlhting,qonqitions in,the Proiect Area, This section presents a detailed analysis of blighting conditions in the Project Area. The analysis is based upon a series of field inspections of the Project Area, discussions with City officials, property owners, business owners, and research and analysis of local and regional economic data. Photographs of the Project Area, including depictions of the specific blighting conditions, are included in the Appendix to this Report. AES Generating Facility The AES Generating Facility on Newland Street was originally constructed in 1958, and is a 450 megawatt natural gas-fired power plant. -Two of the five turbine units (Units 3 and 4)were retired by the former owner(Southern California Edison) in 1994. According to Bill Workman, Assistant City Administrator who has been closely monitoring the AES facility, the 44-year-old power plant is ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -B-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res. No.331 Exhibit A obsolete, involving twice as much fuel and toxic emissions than a modern plant capable of generating the same amount of energy. When AES purchased the facility from Edison in 1999, their intent was to demolish the entire plant and construct a new, lower profile plant that would generate a comparable amount of power with cleaner, more efficient technology. However, the energy crisis of the past year forced AES to scrap these plans, and instead expedite the retooling and reactivation of Units 3 and 4. Though this effort also involved the installation of Selective Catalytic Reduction (SCR) equipment for emissions control, emissions could have been reduced by 25% to 50% if the plant were rebuilt with entirely new rather than retrofitted technology. The improvements to the AES Facility are considered by AES and the State Energy Commission to be temporary, and are not expected to either make the plant economically competitive or sufficiently more efficient and cleaner over the long term. In its response to AES's petition for reconsideration of the five year operating permit, State Energy Commission staff strongly recommended that the Commission maintain a five year operating life for Units 3 and 4, citing concerns for the environmental impacts on the community. According to the staff Response (Docket No. 00-AFC-13), the granting of the operating certificate was necessary to meet demand during the energy crisis, though many "countervailing costs" mitigated this benefit. The following is an exerpt from the staff Response that describe these impacts: We do not know,the extent of the plant's contribution to the transport of bacteria to the beach, Which can result in beach closures and loss of recreational opportunities to beach visitors and commercial opportunities to local merchants. Nor do we know that if the contribution can be successfully mitigated. In addition, although offset on.a regional basis, local air pollutant concentrations will increase when the retooled generators are brought on line. And at a time at which the residents ofthe area can enjoy the reduced visual profile of a modem combined cycle plant which combusts our finite fuel resources more efficiently,is delayed. In five year's time; if not sooner,the generating capacity from these less efficient generating units may no longer be necessary. Newer,cleaner, more efficient plants are expected to be constructed and operating to increase the State's reserve margin. Conservation measures are also expected to reduce demand. At that point, Units 3 and 4 become costs without the benefit to California unless they are replaced with modem,more efficient,power plants. There are serious environmental impacts as a result of the higher releases of nitrous oxides (NOx) into the air nearby the Plant. With a newer plant, local air quality would be improved by as much as 50%. The plant is adjacent to environmentally sensitive uses, including coastal open spaces, residential neighborhoods, public parks, and a high school. Higher NOx emissions make nearby residents and visitors more susceptible to public health problems, such as lung and eye irritation, that arise.due to exposure to these pollutants; NOx emissions are a precursor to even more serious ozone effects. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -B-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res. No.331 Exhibit A In addition to Units 3 and 4, the unit with the highest levels of emissions is a peaker unit, that the Energy Commission is requiring that AES retain due to California's energy crisis. According to Bill Workman, Assistant City Administrator, though only used when energy supply levels are low, the peaker unit exhausts a visible yellow plume when in operation. Since AES has moved forward with the improvements to Units 3 and 4, at a cost of approximately $150 million, it is unable to consider any effort to demolish and reconstruct a new facility until after the costs of these improvements have been fully recouped,which may be as much as ten years. By that point, most of the operational equipment at AES will be more than 50 years old, and residents and visitors would endure another decade of exposure to unhealthy emissions that could be mitigated. It is unclear what the state of the energy market will be by that point, and the community should not have to rely on the conditions of the energy market to obtain cleaner air. The AES Generating Facility is an example of an unsafe/unhealthy building in the Project Area, because its emissions pose a health risk that could be mitigated if the facility was replaced with a newer facility. In addition, the Energy Commission's report supports the case that the substandard design of the AES plant will be functionally obsolete as the State's power generation becomes more reliant on newer, more efficient plants. The current energy crisis has created the necessity for AES to invest in interim improvements that impair the owner's ability to demolish and replace the existing facility in the next ten years, and it is uncertain whether the energy market will at that time support such an effort. As a result, the citizens of Huntington Beach: (and in particular those in the greater southeast area) are subjected to higher emissions without any promise of a cleaner facility in the foreseeable future. Redevelopment can be used by the Agency to facilitate improvements to the AES facility that mitigate of the plant's long-term health and physical impacts on the community. Specifically, if the plant is locally assessed, property tax revenues generated by the project could be used to leverage for an improved replacement power plant that is both cleaner, smaller, and more efficient, while generating the same amount of energy for California consumers. At a time when the energy market is unpredictable, such assistance could be essential to aid the private, sector with such improvements for the betterment of the community. . Aston Landfill Site The 38-acre Ascon Landfill has been designated a Superfund site due to serious toxic contamination. According to City documents, though the site has been fenced off and posted, the general public and neighborhood children have been seen trespassing onto the site, raising public health and safety concerns. Between 1938 and 1984, the Ascon Landfill was an active dump, where the DTSC reports the following items Were deposited on site: ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -B-4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Drilling muds Wastewater brines Other ddlling wastes Chromic acid Sulfuric acid Aluminum slag Fuel oils Styrene Asphalt Concrete Metal Soil Wood Since it closed in 1984, two developers have gone bankrupt trying to redevelop the site. The first was Ascon Properties, Inc., who purchased the property in 1984, and after unsuccessful attempts to use the property went bankrupt in 1989. The second unsuccessful developer was NESI Investment Group, who purchased the site out of the Ascon Properties, Inc. foreclosure sale. After preparing to remove some of the liquid materials in late 1991,the South Coast Air Quality Management District ordered NESI to halt operations to obtain the proper permits, which were ultimately issued in August 1992. The liquid materials were never removed, and NESI filed for bankruptcy in January 1993. Signal Mortgage Company obtained the Ascon Landfill in May 1993 through a foreclosure sale, and has been Working with the DTSC for the past eight years on a cleanup solution. Though 10 of the 16 responsible parties have been identified and agreed to participate in a cleanup solution, a remedial action plan has not yet been adopted, to facilitate cleanup activities. In fact, in an interview with Signal Mortgage representatives, it was confirmed that there are no assurances that the cooperating parties have the financial ability and commitment to fully remediate the site as sought by the DTSC. A feasibility study of the site recommended that most of the material be removed from the property, and estimated a remediation cost of approximately $35 million. Signal Mortgage representatives expressed concern that only $20 million of the $35 million needed could be recovered from the cooperating parties, leaving a $15 million gap in cleanup costs. Without the entire $35 million for remediation, timely redevelopment of the Ascon Landfill could be in jeopardy. Any remaining toxic remediation, plus development costs, would be the responsibility of the developer. Because development costs cannot exceed the market value of the project once completed, there are finite amount of development costs that a project can be expected to bear. RSG's analysis of the Ascon Landfill site concluded that additional remediation costs, plus off site improvements needed to make the site developable for residential use (as designated in the Magnolia Pacific Specific Plan) exceed the ultimate market value of the project. The Magnolia Pacific Specific Plan establishes land use policies and development standards for the Ascon Landfill site, and permits the development of up to 502 units of single-family detached and attached housing units. Discussions with Mary Beth Broeren,.City Senior Planner, the actual number of dwelling units will most likely be less than the maximum permitted, since projects rarely develop to the maximum density. Both the property owner and Ms. Broeren estimated that approximately 371 units would most likely be developed. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -B-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A To analyze the financial feasibility of redeveloping the Ascon Landfill site, RSG prepared the following construction pro forma to show the compare development costs to project revenues, under the maximum (502 unit) and probable (371 unit) buildout scenarios. Development pro formas are commonly used by developers and real estate investors to gauge the ability of a potential development to be constructed at or below the project's value at buildout. For a for-sale residential project permitted for the Ascon site under the.Specific Plan, the project's value is equal to the combined total sales prices for all units built. Based on the property owner's estimates for both the detached and attached products, RSG estimates that the combined sales price for the 502 unit scenario would be approximately $197.8 million, and $161.6 million for the 371 unit scenario. As shown in Table B-1 below, the cost of developing the Ascon Landfill could cost between $3.9 million and $11.7 million more than the total project value. This additional cost discourages the private sector from proceeding with development of the project, because the additional costs would offset most, if not all, of the profit in the project. Without an ability to generate a reasonable profit, the private sector has no incentive to proceed with redevelopment of the project. Without development of the project, there is no additional funding source for the $15 million of cleanup costs that may not be procured from the responsible parties, so the entire cleanup and reuse of the Ascon Landfill may be in jeopardy unless an outside funding source is found to bridge the financing gap of$3.9 million to$11.7 million. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 B-6- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Ascon Landfill Development Pro Forma Buildout Scenario Maximum Probable Buildout Buildout Units (502 Units) (371 Units) Acquisition &Site Preparation $ 45,690,800 S 45,690,800 Land Purchase 24,400,000 24,400,000 Cleanup Costs 21,000,000 21,000,000 Site Preparation Costs 290,800 290,800 Hard Construction Costs $ 97,201,787 S 73,978,187 Residences 67,244,000 51,494,000 Common Area Landscaping 2,449,727 2,449,727 Off Site Improvements 27,508,060 20,034,460 Soft Costs $ 54,910,392 S 41,922,337 Architects/Consultants/Legal 7,776,143 5,918,255 Fees/Permits 8,262,152 6,288,146 Financing 9,720,179 7,397,819 Marketing 3,888,071 2,959,127 Taxes 777,614 591,825 Development Administration 7,776,143 5,918,255 Profit 11,850,000 9,150,000 Contingency 4,860,089 3,698,909 Total Development Costs $ 197,802,979 S 161,591,324 Sales Revenue $ 193,870,000 S 149,890,000 Feasibility Gap $ (3,932,979) $ (11,701,324) The blighting Conditions present at the Ascon Landfill site include the presence of hazardous materials that hinder the economically viable use of the property, and impair the owner's investment. The Ascon Landfill also poses a health risk to the neighborhood, as children and adults have been found trespassing onto the site despite perimeter fencing and posted notices. According to local real estate professionals and property owners, the physical and economic conditions of both the Ascon Landfill and AES facility cause property values of surrounding residential properties to be lower than other coastal property in the City. An analysis of single family home sales during calendar year 2001 indicates that single family homes in the southeast neighborhoods (immediately north and east of the Project Area)sell for approximately 22.5% less than homes in other parts of the City within the same half-mile distance of the. Coastline' This data demonstrates that the proximity to incompatible uses such as the Ascon Landfill and AES Generating Facility hinders the economic development of the greater Southeast area. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 B-7- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Redeveloping the Ascon Landfill site would be an important objective of the Agency under the Plan. Among the activities the Agency could undertake to expedite the cleanup of this property could include assisting the owner with development costs to bridge the financing gap for the ultimate development of the property, or assist with toxic remediation activities. Agency participation in the redevelopment of the Ascon Landfill property could expedite cleanup and reuse activities. .In addition, any additional funds recovered from the responsible parties could be used to reimburse the Agency for any contributions to site remediation. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 B-8- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A 1• A Determination as to Whether the Project Area is Predominantly Urbanized For all redevelopment project areas established or areas added to project areas after January 1, 1994, Section 33320.1 of Redevelopment Law requires these areas to be "predominately urbanized." This means that no less than 80 percent of land within the project area: �) Has been or is developed for urban uses; 2) Is characterized by the existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership, or; 3) Is an integral part of one or more areas developed for urban uses which are surrounded or substantially surrounded by parcels which have been or are developed for.urban uses. A total of 147.56 acres, or 85.56% of the Project Area, is urbanized. Urbanized areas include 144.81 acres (83.97%) that either have been or are currently developed and 2.75 acres (1.59%) that are integral of an urban area since they are immediately adjoined by developed parcels on at least three sides. Exhibit C-1 depicts the location of urbanized and nonurbanized parcels in the Project Area. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -C-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Exhibit C-1 -Urbanization Map � II �I C t GpS 5010 RI US S0: F-1 TP.0.8 •PIlB 13 r- EYcrP%:on Exctp:fon .-an•a ;1 �L� ars¢ I Mtn 2 P.(i8 '1 E 1 I c1 ProJea 1rzs .. ; = TpT �S Rndmt Une. N 47'24'59'^E u•'190�' j ,::.,M t �� w•�-�, � �� cps 5006 f Legend QUrbanized Area ' •' 1 t 5 'Racc Lmt.d Non Urbmized Area \ N 55.44 1z V, ' lntergral Part of Urbaii Area .....� Project Area Bowidary ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -C-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A I• A Preliminary Assessment of the Proposed Method of Financing, Including the Economic Feasibility and the Reasons for the Division of Tax Increment Redevelopment of the Project Area is proposed to be financed with the following resources: 1) Financial assistance from the City, County, State of California and/or Federal Government; 2) Tax increment revenue; 3) Bonded debt; a) Proceeds from lease or sale of Agency-owned property; s) Loans from private financial institutions; and s) Any other legally available source. The more typical sources of redevelopment financing that may be employed with the Project are described below. Financial Assistance from the City,County,State,and/or the Federal Government The Agency may obtain loans and advances from the City for planning, construction, and operating capital for administration of the Project until such time that sufficient tax increment revenue is raised to repay loans and provide other means of operating capital. The City may also defer payments on Agency loans for land purchases, benefiting the Agency's cash flow. Such assistance is anticipated to be employed to meet short-term cash flow needs, as the City's General Fund cannot carry extensive levels of Agency debt at the risk of threatening the City's own cash balances. As available, other funds such as matching federal and state grants will be appropriately used to pay the.costs.of Project implementation. The Agency and City will also pursue other available grants and loans; additionally, the City or other public agencies may issue bonds on behalf of the Agency and provide in- kind assistance. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 D-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Property Tax Increment The Agency may use property tax increment as provided for in Section 33670 of the Redevelopment Law, and is authorized in the Plan to employ tax increment financing to underwrite Project costs. Tax increment revenue may only be used to pay indebtedness incurred by the Agency; indebtedness includes principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, redevelopment activities. Under Redevelopment Law, an agency can only collect tax increment revenue once it has incurred debt. Project tax increment revenues are distributed to address an array of obligations. As required by Section 33334.6 of the Redevelopment Law, twenty percent. (20%)of Project tax increment revenue is deposited into the Housing Fund for the purposes of increasing, improving, and preserving the community's supply of low and moderate income housing. The remaining 80% of the tax increment revenue will be used to pay for statutory taxing entity payments (as described in more detail later in this Section), debt service costs, and other program expenditures. Program expenditures include infrastructure, public facilities, and economic development programs within the Project Area. The Plan would feature specific time limits on the collection of tax increment revenue as required by Redevelopment Law. As stated in the Plan, the Agency may collect tax increment revenue for a period of 45 years following adoption of the ordinance adopting the Plan. Assuming the Plan is adopted in June 2002, the . Agency would receive Project Area tax increment revenue through fiscal year June 2047 (through fiscal year 2046-47). Bonded Debt Under the Plan, the Agency would have a capacity to issue bonds and/or notes for any of its purposes, payable in whole or in part from tax increment revenue. Many redevelopment agencies in the state employ bond financing as an integral component of their overall redevelopment-financing program. The Plan permits the Agency the ability to incur debt for a 20-year period after its adoption, and establishes a $50 million cumulative limit on the amount of bonded debt principal which may be outstanding at any one time. Assuming the Plan is adopted in June 2002, the Agency would be permitted to incur debt until June 2022 (through fiscal year 2021-22) Lease or Sale of Agency-Owned Property The Agency may sell, lease, or otherwise encumber its property holdings to pay the costs of Project implementation. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -D-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Participation in Development If the Agency enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Agency, such revenues may be used to pay Project implementation costs. Other Available Sources Any other loans, grants, or financial assistance from the federal government, or any other public or private source will be utilized, as available and appropriate. The Agency will also consider use of the powers provided by Chapter 8 (Redevelopment Construction Loans) of the Redevelopment Law to provide construction funds for appropriate projects. Where feasible and appropriate, the Agency may use assessment district and/or Mello-Roos bond financing to pay for the costs of public infrastructure, facilities, and operations. Projected.Tax Increment Revenues The primary source of project financing is anticipated to be tax increment revenue. Table D-1 presents preliminary forecast of Project tax increment revenues, based on several assumptions noted below: 1) 2001-02 Base Year value: Assuming the Plan is adopted prior to July 20, 2002, the Project will collect tax increment revenues from increases in the Project Area assessed value over fiscal year 2001-02. In December 2001, the Orange County Auditor-Controller and State Board of Equalization delivered a report of the estimated base year value of the Project Area. The base year report set the Project Area's base year value at $103,943,351, of which $102,441,937 (99%) is attributed to the AES Generating Facility that may ultimately be removed from the local roll and the base year value of the Project Area. (See Item 3 below) 2) Assessed value Growth mates: RSG conservatively applied a 1.5% annual growth rate to forecast future assessed value increases in future years. In addition, as noted below, the projections incorporate specific development assumptions that further increase the Project Area's projected tax increment revenues. 3) AES Generating Facility Assessment- Presently, the County Assessor assesses the $102.4 million AES Generating Facility on the local secured roll, though a recent decision by the State Board of Equalization (Rule 905) will shift this property to the State-assessed utility roll beginning in fiscal year 2002-03. In the event that the State Board maintains this shift to the state utility roll, the County Auditor Controller would remove the AES value from the local roll, and the Project Area's base year value would be reduced to $1,501,414. The ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 D-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Agency would not receive a substantial amount of tax increment revenue from the AES Facility, including any future improvements or alterations; property tax revenues collected from the AES Facility would be apportioned on a countywide basis. As described in more detail later in this Section, the gross tax increment revenue projected for the Agency could be reduced by approximately 43% (or$62.2 million)over the next 45 years if the AES Facility is assessed pursuant to the State Board's new procedures. However, the City of Huntington Beach and other jurisdictions are currently working with the State to modify its decision to permit the property tax revenues to be State-assessed, but apportioned only to the local affected taxing agencies. The solution the City is seeking would effectively yield the same amount of property tax revenues to the local taxing agencies (and Redevelopment Agency) as if the property remained on the local (County- assessed)secured roll. This Report analyzes the implications of both assessment scenarios on the Agency's project tax increment revenues. In the event that the AES facility is state assessed and apportioned Countywide, the Agency's redevelopment program would be curtailed, but tax increment revenues from the balance of the Project Area, including the redevelopment of the Ascon Landfill, could be used to underwrite a more.focused redevelopment program in the Project Area. 4) Development Assumptions: RSG incorporated various development assumptions into the ..revenue forecast. Since specific development . proposals.are not in place at this time, actual project scope and timing may vary significantly from what is included in this forecast. The specific projects included in the development assumptions are noted below: ■ AES Generating Facility — Units 3 & 4 Reactivation. In the event that property taxes from the AES Generating Facility are apportioned to the local affected taxing agencies (rather than on a Countywide basis), AES's retooling of Units 3 and 4 would be expected to add a minimum of$67.5 million to the 2002-03 assessment roll. ■ Ascon Landfill Redevelopment. Though up to 502 units are permitted by the Magnolia.Pacific Specific Plan, RSG projected additional assessed value increases based on a more probable 371 unit buildout (as described in Section B). According to the property owner, who has conducted some preliminary market research of the area, the single family detached units are anticipated to sell for approximately $500,000, while the detached.units are anticipated to sell for about $250,000. RSG is assuming that the project would commence construction in the year 2011. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -D-4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Projected Tax Increment Revenues Fiscal With AES Facility on Local Roll Without AES Facility on Local Roll Year Gross Tax Taxing Housing Nonhousing Gross Tax Taxing Housing Nonhousing Increment Agency Set Aside Revenue Increment Agency Set Aside Revenue Payments De osits Payments Deposits 2001-02 Base Year Value: 103 943 351 2001-02 Base Year Value: 1,501,414 2002-03 - - - - 2003-04 716,355 143,271 143,271 429,813 441 88 88 264 2004-05 742,598 148,520 148,520 445,559 666 133 133 400 2005-06 769,236 153,847 153,847 461,542 895 179 179 537 2006-07 796,273 159,255 159,255 477,764 1,127 225 225 676 2007-08 823,716 164,743 164,743 494,229 1,362 272 272 817 2008-09 851,570 170,314 170,314 510,942 1,601 320 320 961 2009-10 879,842 175,968 175,968 527,905 1,844 369. 369 1,107 2010-11 908,538 181,708 181,708 545,123 2,091 418 418 1,254 2011-12 937,665 187,533 187,533 562,599 2,341 468 468 1,404 2012-13 1,346,457 269,291 269,291 807,874 381,824 76,365 76,365 229,094 2013-14 1,768,967 424,775 353,793 990,398 774,583 220,900 154,917 398,766 2014-15 .2,205,550 585,437 441,110 1,179,002 1,180,971 370,451 236,194 574,326 2015-16 2,656,572 751,414 531,314 1,373,844 1,601,345 525,149 320,269 755,92T 2016-17 3,122,409 922,842 624,482 1,575,086 2,036,074 685,129 407,215 943,730 2017-18 3,184,744 945,781 636,949 1,602,014 2,066,834 696,448 413,367 957,018 2018-19 3,248,014 969,064 649,603 1,629,347 2,098,055 707,938 419,611 970,506 2019-20 3,312,232 992,697 662,446 1,657,089 2,129,744 719,600 425,949 984,196 2020-21 3,377,415 1,016,684 675,483 1,685,248 2,161,909 731,436 432,382 998,091 2021-22 3,443,574 1,041,030 688,715 1,713,829 2,194,556 743,450 438,911 1,012,195 2022-23 3,510,726 1,065,742 702,145 1,742,839 2,227,693 755,645 445,539 1,026,510 2023-24 3,578,886 1,090,825 715,777 1,772,284 2,261,328 768,022 452,266 1,041,040 2024-25 3,648,068 1,116,284 729,614 1,802,170 2,295,466 780,585 459,093 1,055,788 2025-26 3,718,287 1,142,125 743,657 1,832,505 2,330;117 793,337 466,023. 1,070,757 2026-27 3,789,560 1,168,353 757,912 1,863,295 2,365,287 806,279 473,057 1,085,950 2027-28 3,861,902 1,194,975 772,380 1,894,547 2,400,985 819,416 480,197 1,101,372 2028-29 3,935,329 1,221,996 787,066 1,926,267 2,437,219 832,750 487,444 1,117,025 2029-30 4,009,858 1,249,423 801,972 1,958,463 2,473,996 846,284 494,799 1,132,913 2030-31 4,085,504 1,277,261 817,101 1,991,143 2,511,324 860,021 502,265 1,149,038 2031-32 4,162,285 1,305,516 832,457 2,024,312 2,549,213 873,964 509,843 1,165,406 2032-33 4,240,218 1,334,195 848,044 2,057,979 2,587,670 888,116 517,534 1,182,020 2033-34 4,319,320 1,372,164 863,864 2,083,292 2,626,704 906,852 525,341 1,194,510 2034-35 4,399,608 1,410,703 879,922 2,108.984 2,666,323 925,870 533,265 1,207,189 2035-36 4,481,101 1,449,819 896,220 2,135,061 2,706,536 945,172 541,307 1,220,057 2036-37 4,563,816 1,489,522 912,763 2,161,530 2,747,353 964,764 549,471 1,233,118 2037-38 4,647,771 1,529,821 929,554 2,188,396 2,788,782 984,650 557,756 1,246,376 2038-39 4,732,987 1,570,724 946,597 2,215,665 2,830,832 1,004,834 566,166 1,259,832 2039-40 4,819,480 1,612,241 963,896 2,243,343 2,873,514 1,025,321 574,703 1,273,490 2040-41 4,907,271 1,654,381 981,454 2,271,436 2,916,835 1,046,115 583,367 1,287,353 2041-42 4,996,378 1,697,152 999,276 2,299,950 2,960,806 1,067,222 592,161 1,301,423 2042-43 5,086,822 1,740,566 1,017,364 2,328,892 3,005,437 1,088,644 601,087 1,315,705 2043-44 5,178,623 1,784,630 1,035,725 2,358,269 3,050,737 1,110,389 610,147 1,330,201 2044-45 5,271,801 1,829,355 1,054,360 2,388,086 3,096,717 1,132,459 619,343 1,344,915 2045-46 5,366,377 1,874,752 1,073,275 2,418,350 3,143,386 1,154,860 628,677 1,359,849 2046-471 5,462,371 1,920,829 1,092,474 2,449,068 3.190.756 1,177,597 638,151 1.375 007 Total 145,866,074 45,507,528 29,173,215 71,185,331 83,683,278 29,038,509 16,736,656 37,908,114 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 D-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A If the Plan is adopted, the Agency would collect gross tax increment revenue pursuant to Section 33670 of the Redevelopment Law for a 45 year period. Redevelopment Law requires that the Agency deposit 20% of this gross tax increment revenue into the Agency's Housing Fund. In addition, the Agency would be required to share a portion of its.Nonhousing Fund revenues with the affected taxing agencies pursuant to Sections 33607.5 of the Redevelopment Law ("Taxing Agency Payments"). These Taxing Agency Payments would start in the first fiscal year the Agency would receive tax increment revenue from the Project Area (assumed to be fiscal year 2003-04). According to Section 33607.5 of Redevelopment Law, beginning in the first payment year, the Taxing Agency Payments are equal to 25% of the Project's annual nonhousing tax increment revenue. These Taxing Agency Payments are subject to two subsequent increases. The first increase in Taxing Agency Payments would take effect in the eleventh payment year, when the Agency would be required to pay 21% of the incremental increase in nonhousing tax increment revenues exceeding amounts in the tenth payment year. The Law further provides for a second increase in the Taxing Agency Payments that commences in the thirty-first payment year of 14% of the incremental increase in nonhousing tax increment revenues in excess of the thirtieth year. In total, the Agency will share approximately 31-35% of its gross tax increment revenues with the affected taxing agencies. The actual amount of the Taxing Agency Payments will vary based on.the amount of tax increment revenues collected by the Agency each year. A forecast of Taxing Agency Payments has been included on Table D-1. Should actual tax increment revenues exceed or fall below these projections, actual Taxing Agency Payments would be higher or lower. Each taxing agency is entitled to their respective share of the Statutory Payment. All agencies receive their share of the Statutory Payments, except for the City of Huntington Beach, which, by Section 33607.5, is only entitled to its share of the first 25% of the Statutory Payments. The following is a list of affected taxing agencies in the Project Area, according to the County's base year report: 1) City of Huntington Beach 2) Huntington Beach School District 3) Huntington Beach Union High School District 4) Coast Community College District 5) Orange County Municipal Water District 6) Metropolitan Water District ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -D-6- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A 7) Orange County Department of Education 8) Orange County Sanitation District . 9) Orange County Water District 10) Orange County Cemetery District 11) Orange County Flood Control District 12) Orange County Transit Authority 13) Orange County Vector Control District 14) Orange County Harbors Beaches & Parks is) Orange County General Fund Economic Feasibility Analysis As stated earlier in this Section, the Agency might not be entitled to collect a significant amount of tax increment revenue from the AES Generating Facility if the City is not successful in its efforts to alter the State Board of Equalization's decision affecting power plant assessment and property, tax apportionments. In light of this uncertainty, two separate tax increment projections were.generated for this Report, one including the AES property, and another excluding the AES property. Below is a summary (Table D-2)of the projected tax increment revenues over the next 45 years. Table D-2 shows gross tax increment revenues, projected taxing agency payments, housing set aside deposits, and gross nonhousing revenues. In addition, Table D-2 presents conservative estimates of the Agency's administrative costs (based on the 2000-01 budget) and financing costs (assuming most of the projects are financed with tax allocation bonds) to show the amount of net nonhousing funds that could be available for project implementation. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 D-7- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Summary of Projected Tax Increment Revenues 45 Year Projections Scenario With Without Difference AES Facility AES Facility Gross Tax Increment $ 145,866,074 100% $ 83,683,278 100% $ 62,182,796. Taxing Agency Payments 45,507,528 31% 29,038,509 35% 16,469,020 Housing Deposits 29,173,215 20% 16,736,656 20% 12,436,559 Nonhousing Revenue 71,185,331 49% 37,908,114 45% 33,277,217 Administration /1 8,542,240 6% 4,548,974 5% 3,993,266 Financing Costs /2 39,863,785 27% 21,228,544 25% 18.635,242 Net Nonhousing Revenue $ 22,779,306 16% $ 12,130,596 14% $ 10;648;709 1/ Based on current ratio of Agency administrative costs to gross nonhousing revenue (per 2000-01 budget) 2/ Based on current ratio of Agency bond debt service interest costs to total debt service payments. Because the Project Area is relatively small, the majority of the Agency's implementation activities will be funded by tax increment increases from development in the Project Area. If the AES Facility is moved to the State- assessed unitary utility roll, the Agency's tax increment revenues would be reduced significantly, and the Agency would need to curtail its housing and nonhousing programs based on the lower revenues. However,the Agency would still be projected to retain approximately $16.7 million in housing fund revenue, plus $12.1 million in net nonhousing revenue for implementation activities. Though the Agency could elect to fund project implementation on a more gradual, pay-as-you-go basis to retain more of the nonhousing funds for actual project costs, incurring interest costs for bonds or other long-term debt does allow the Agency to expedite projects sooner. Should tax increment revenues fall below or exceed projections, the Agency will alter implementation activities accordingly. Tax increment financing will be an essential part of the Agency's redevelopment program in the Project Area. For years, the Ascon Landfill has languished and two property owners have gone bankrupt in prior efforts to clean up an recycle the property. While ongoing activities involving the current owner and responsible parties are encouraging, there is evidence that additional financial assistance may be needed, particularly if the $35 million of cleanup costs cannot be recovered from the responsible parties. Tax increment financing could be used to help close the financing gap for reuse of the Ascon Landfill. If property taxes from the AES facility are.apportioned locally (instead to all agencies Countywide), tax increment financing could also be useful in underwriting some of the costs of replacing the existing facility with a newer, ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -D-8- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res. No.331 Exhibit A cleaner, lower profile plant. At a time when the property owner has just invested significant capital into interim improvements to meet the State's energy demands, and the future of the energy market is uncertain, the ability to use tax increment revenues to improve this facility may be of great benefit to the Project Area and the Southeast area overall. In addition, tax increment financing may also be useful for undertaking community development, recreational, and infrastructure projects in and around the Project Area to upgrade the Southeast area, and make Project Area properties an asset to the community. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -D-9- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A ' I• A Description of the Projects Proposed by the Agency The Plan includes a list of infrastructure and public facilities projects, which could be implemented by the Agency. Additionally, the. Agency will also employ resources to fund. a variety of affordable housing, commercial rehabilitation, and economic development activities. A preliminary list of the redevelopment projects and programs anticipated by the Agency is included on the next page of this Section. Fund allocation to public infrastructure and facility improvement programs could be used to supplement City Capital Improvement Program funding and improve street, storm, drain, and sewer infrastructure within the Project Area. Furthermore, fund allocation for commercial rehabilitation and economic development incentives could result in high and best uses for Project Area properties and businesses. The Agency .will allocate 20 percent of the project generated tax increment revenue to those activities that increase and improve the community's supply of affordable. housing. Redevelopment Law allows the Agency to expend these funds both inside and outside the Project Area. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -E-1 - SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Housing Programs Increase and improve the community's supply of affordable housing for very low, low, and moderate income households. Projects include, but are not limited to, the following: ■ Citywide Affordable Programs:ams: The Agency will invest housing set-aside funds into the creation or rehabilitation of housing for low and moderate income households throughout the City. Infrastructure Programs Improve pedestrian, bicycle, and vehicular traffic flows, upgrade utilities and drainage systems, enhance public safety, and promote recreational opportunities in and around the Project Area. Projects include, but are not limited to, the following: ■ Storm Drain Projects: Upsize existing storm drains, install new storm drains, and install new pumping stations to facilitate future development and improve inadequate facilities. ■ Flood Control Projects: Complete channel lining of the Orange County Flood Control Channel and other flood management programs or projects as warranted. Street Improvements: Widen Newland Street, Hamilton Avenue, and Magnolia Street and other streets as needed and install and or upgrade the traffic signalization systems as necessary. ■ Water System Projects: Install new water mains along Edison Avenue and Newland Street, as well as a new water reservoir and pump station in the Project Area. ■ Streetscape Projects: Continue implementation of median and other streetscape projects along Pacific Coast Highway and other arterials serving Project Area. ■ Recreational/Open Space Projects: Protect environmentally sensitive areas, restore wetlands, and work with State, County, and nonprofit agencies on recreational, beach paths, and other improvements to Project Area open spaces. Public Facility Programs Develop and renovate community facilities that meet the needs of both the Project Area and City when there has been a finding of benefit to the Project Area, such as: ■ Edison Community Center ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 E-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A ■ Edison Park ■ Edison High School and neighborhood schools Commercial Rehabilitation and Economic Development Programs Implement projects that result in the redevelopment of obsolete structures and cleanup contaminated properties. Projects include, but are not limited to, the following: ■ Ascon Landfill Redevelopment: Work with property owners of Ascon Landfill to ensure timely and effective remediation and reuse of the Ascon Landfill. ■ Transition of Existing Obsolete Uses: As existing industrial uses in Project Area become obsolete and recycle, ensure that future development is more compatible with surrounding neighborhoods and other environmentally sensitive areas. ■ AES Generating Facility: Assist with screening, design, or environmental improvements to mitigate impacts on adjoining neighborhoods and environmentally sensitive areas associated with modernization and reconstruction of the AES power generating plant ROSENOW SPEVACEK"GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 E-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A I• A Description of How the Proposed Projects Will Improve and Alleviate Blight Implementation of the Plan will allow the Agency to undertake a comprehensive redevelopment program. The authorities and provision of the Plan have been developed to permit the Agency to enact redevelopment projects that target blighting conditions in the Project Area. The Agency will work with property and business owners to design and implement specific redevelopment initiatives. ■ Housing Programs. Housing fund expenditures will assist the City in implementing the goals and programs set forth in the Agency's Affordable Housing Compliance Plan for the Project Area and Housing Element of the City's General Plan. More specifically, the Agency will employ low and moderate income housing funds into its existing programs to rehabilitate deteriorating housing stock, increase homeownership levels, and/or develop infill lots throughout the City. ■ Infrastructure and Public Facilities Programs. Traffic and circulation improvements include those that have been ,identified in various City commissioned studies. Plan implementation will necessitate additional studies to identify additional infrastructure improvement needs. Among the projects anticipated to occur in the Project Area include implementation of street lighting and other safety improvements along roadways serving the Project Area. Among these improvements are widening of Magnolia Street to facilitate the redevelopment of Project Area properties. Recreational and open space improvements will capitalize on the Project Area's unique coastal location, protect and restore sensitive wetlands in the area, and upgrade the overall environmental quality of the area. These and other public improvements address substandard infrastructure conditions in the Project Area, while expanding accessibility and utilization of recreational facilities serving the Project Area. ■ Community Rehabilitation and Economic Development Programs. These activities are designed to address blighting conditions by assisting business and property owners with rehabilitation, expansion, or acquisition activities. The Agency proposes to provide funds to assist in land acquisition and on- and off-site infrastructure improvements. Among these projects are the ultimate recycling of the Ascon Landfill to return the property to a safe and useful condition, and redevelopment of AES Facility to a cleaner and lower profile plant that is more compatible with surrounding sensitive uses. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH JANUARY 9,2002 -F-1 - SOUTHEAST COASTAL REDEVELOPMENT PROJECT PRELIMINARY REPORT Res.No.331 Exhibit A Photo Survey - �''� y !f +� 0�,.1�,�:�,}� �'�fYi�t�'4 C: }�I3s°r��a�� ECG ��t�� r � •�l kr'4'�i .f � f /'44 t'��{ `/`�,aTr:S'7f��^,'�� f� �h{ t�`5L.r�r+•!Iq �p��5t" �sy� +��al+ .4 P, ��.r', #•lir��iz r+= ,.. 'Al-M�$ `3'1 t� ! } j�a,� xJ }f is. '. t�.. xb 'v.'� r i{ f AZr tC�saWAbler.,tFr`." y i } �l ;a:, tt lNx` rV. r y tll1 q, -t 1i. iM11<t �j r Jk J }� a t• .et •r t\ '� .s �` I�it .&• �' ty .1 r•ft.et �rrok•i>rrt�y 1 p. i�u t }�g Yt t .+• '99 y 1 Al Jtt�a,�C4�'Fat:. � '�,��vy fG>,a�,l/�,�� a '�•. � �•.>' '+df't+1+7�!-; r%�qy t'i �y.rr t/5=9. t J xrFY}'r"�ff � 7�'i f'''4"�•�'�ns'� i � r��.K t�� >"� nr ,u�' �>+1y t MAAi ril t > .atr,,�t. t a r/t �€ t ,} sa >.s1wi I• 4 P�7`� y �isitt NOW, ti I/ ?f\1+�}.pt S) • '1 IU•�1fy�`f}k / IIJ)�cSYS•� .-Y '�.4-n .� *�•�-:.- an^('.�0.•-•- J . ' s, . J't •+f S 4 •i-'+ r 4 r v �'k t��r �r ti`i�' �:' r, fir` I � t ft =� ` ^r ) Sn}.�.'��?J ..s is""'"' `�`t?�'y-,•1, --I) �gg , L ; 3 t ti s° „'.. }�Jt yM i - 1 ;'"4�E•! - jA ?�!'.SX...:. t`•'e_ih t� r { ""1 � � 1.r�-� �° Y lY�.� I i a`� � t' '#:�J .:a2°��'$' � � i••`,.&�a r.' r r ,s�,..f � / r- t 7y+ � �t r �r'S• t�;r`,s�. ey.t AYE I.�.t/�r6/ � • �l�/,f•" t` t /tea ��— . *;� 'a' -�'+q��``��•,,��}',+`•`t�ri l`�t rjl.:r 7�,:> {f 1r�ri>:F'�b}+�n�+^,r>�i^$,�F3....,pso k y+'' ` - ��°°r+s 'yt��'9��1��"•t � ZS`�`��i �n �;A`��'�`Mst'�:�d� S x ,tf�, k17}l'��e� Y tt�� .,�d}�l •3 �>SS tSl \�t��t i l t,� \x b ttt \!,�! �� Q( n� 1•c� 1 1'01�r i Y l.r�l •i � \ �a4�r� K3` Ora{�i(`�L'11 f`°,: •i� I,'�til�" A 1ti��4�r`��}'�1��'•'sTLs��, �� t�41� \ � �4��:�t! I(�� tL�, t.�Y�CLI/c4t�q - 1•t `�1 �1='��`r s N �t7'� ' -fir ph !t ',�•t� �1�� ,'� /.'�i�t\� a 1 r �, Z xer t r �ffd fl d Itti� @�� + i � tit pL`� !4 :.•.�r�i �Cr� �� w ,tt•T y J t t � � 3 t�... �, !° ! �•}'{ � / `;,;r� t 1/ l f rT `t, 1 X a e,.7y��\�txt. �Rf� ;,r, � �`t 1 • k ! ��j��` o � l �n�,��' f/f F� •tf-tJ lP d Z S;`�✓F � .may � !' __ SS .1 s .4. j r �.,•11:.� �r r, �..•�°n •""r'."''R•LzF12+.49's.C'ek.?�`•s�S.+w,�b`kw'�t'4�"'N,,,,'Cf� •+5, l � } P f ' � 5 3�,'�.f .� .77Yn' jr.�a�G�"�'"'�F:;.K,.x i`a„`•• f.' G.� .t. .r ' y,< ' ,;". �.a P..:r `v� '*• s `7'• y �;..•/ q'�� &.p.�.W s,;r�Fiyx..Ai�,�,t"�,d�"x �ti �.'+�'? Res.No.331 Exhibit A •M w All - t3. y ."fi ',,.y,y �',},. i' edi .,.�a,. ,?..` �,z'S` • ,'SR. �' a S it as ;ig x 4y�e t� x45 E 1 �� Ru GY '94�. i' �k� t'f..3 •" ' n �rt t S-✓ pT S' d r ,n-�.r.* •7�. t x ' "ba#I s ,�a ' 'h5 �S`'E-•ty r-"�*-ty.1^L � C'M `"ki� I'& n J.enF.FyL��^ 25 •» RI+l .• Yam' tt.� �x�' ,r hs' �'�� "'-•ems �°,�'£ ^t 4:n'•..r ,Y�..R:.. p �'.i: f.Y7rty 33rx' K . a I ! I Picture 5:The AES Generating Facility on Pacific Coast Highway and Newland Street. This photograph shows the ongoing retooling of Units 3 and 4 which prevents the owner from demolishing and constructing a newer and lower facility in the forseeable future. ,„� 5 T. f�x „-' '` y ."g. 'zT'L ��r. ,.��w� i�' +��T `�:� ''w" -aa,6a. ^�'� A`r •x' y ��'"�MM'�-f"Y',#� STRIPIliGr A ..Picture 6: 8541 Edison Ave, Southern California Striping. The vehicles to be salvaged are parked on the streets due to lack of sufficient onsite parking and storage. Res.No.331 Exhibit A o t x ` ''#,*"4.�iga(7'a.+' �,' t:3""r "+'`,�� cz.lr�31�` ' y� 'S:-��sF s`f? �� ta a't t'.a�xF+ a l ma's'` 4J"N jy„`4UR f tF 7 .. e'>�5 .yt(f ten,. � � t—f. t ^� '•�-s u.ft+v�s`�'•`'' ,�..caa_sx. a -✓ �'�-- t� r.- 'y4"+.i' MT BECKIN6' Picture 7: 8551 Edison Ave, Beach Wrecking. The entire street is characterized by auto salvaging type uses and the facilities do not have adequate parking spaces. Res.No.331 Exhibit B Draft Redevelopment Plan for the Proposed Southeast Coastal Redevelopment Project Res.No.331 Exhibit B Southeast Coastal Redevelopment Project Dmft PIM January 9, 2002 Redevelopment Agency of the City of Huntington Beach 2000 Main Street, 5th. Floor Huntington Beach, California 92648 Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 Phone: (714)541-4585 Fax: (714)836-1748 E-Mail: info@webrsg.com Res.No.331 Exhibit B Draft Redevelopment Plan Southeast Coastal Redevelopment Project Tiwe—of Contents SECTION 1 (100) INTRODUCTION..............................................1 SECTION 11 (200) GENERAL DEFINITIONS................................2 SECTION 111 (300) PROJECT AREA BOUNDARIES.....................3 SECTION IV (400) REDEVELOPMENT PLAN GOALS.................3 SECTION V (500) REDEVELOPMENT PLAN ACTIONS...............5 (501) General..........................................................................................5 (502) Property Acquisition....................................................................6 (505) Participation by Owners and Persons Engaged in Business.7 (509) Implementing Rules.....................................................................9 (510) Cooperation with Public Bodies.................:. (511) Property Management...............................................................10 (512) Payments to Taxing Agencies..................................................11 (513) Relocation of Persons Displaced by a Project.......................11 (516) Demolition, Clearance, Public Improvements, Site Preparation and Removal of Hazardous Waste......................12 (521) Rehabilitation, Moving of Structures by the Agency and Seismic Repairs.........................................................................14 (525) Property Disposition and Development..................................15 (533) Provision for Low and Moderate Income Housing.................19 SECTION VI (600) USES PERMITTED IN THE PROJECT AREA20 . (601) Maps and Uses Permitted.........................................................20 (602) Prohibited Uses..........................................................................20 (603) Public Uses.................................................................................20 G:\CAROL\PROJECTS\SECOAST\REDEVELOPMENT PLAN.DOC DRAFT REDEVELOPMENT PLAt es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B (606) Nonconforming Uses.................................................................22 (607) Interim Uses................................................................................22 (608) General Control and Limitations..............................................22 (618) . Design for Development............................................................25 (619) Building Permits.........................................................................25 SECTION VII (700) METHODS FOR FINANCING THE PROJECT..............................................................25 (701) General Description of the Proposed Financing Methods....25 (702) Tax Increment Revenue.............................................................26 (703) Agency Bonds............................................................................28 (704) Other Loans and Grants............................................................28 (705) Rehabilitation Loans, Grants, and Rebates ............................28 SECTION Vill (800) ACTIONS BY THE CITY ...........................29 SECTION IX (900) ADMINISTRATION AND ENFORCEMENT ...30 SECTION X (1000) PLAN LIMITATIONS..................................30 (1001) Amount of Bonded Indebtedness Outstanding At Any One Time.............................................................................................30 (1002) Time Frame to Incur Indebtedness..........................................30 (1003) Duration of This Plan.................................................................31 (1004) Time Frame to Collect Tax Increment Revenue......................31 SECTION XI (1100) PROCEDURE OF AMENDMENT ................32 Exhibit A- Project Area Map...................................................33 Exhibit B - Legal Description...................................................34 Exhibit.0 - Listing of the Proposed Projects, Public Facilities, and Infrastructure Improvements........................38 Exhibit D - Diagram of Permitted and Prohibited Land Uses..40 ROSENOW SPEVACEK GROUP,INC. Res.No.331 Exhibit B Draft Redevelopment Plan Southeast Coastal Redevelopment Project (101) This is the Redevelopment Plan for the Southeast Coastal Redevelopment Project ("Plan"), located in the City of Huntington Beach, California. It consists of the text (Sections 100 through 1100), the Project Area Map of the Southeast Coastal Redevelopment Project Area ("Project Area") (Exhibit A), the legal description of the Project Area boundaries (Exhibit B), a listing of the proposed projects, public facilities, and infrastructure improvement projects (Exhibit C), and a diagram of permitted and prohibited land uses (Exhibit D). The Project Area is generally located in southeast Huntington Beach, between Newland Street and Magnolia Street, from Pacific Coast Highway to Hamilton Avenue. This Plan has been prepared by the Redevelopment Agency of the City of Huntington Beach ("Agency") pursuant to the California. Community Redevelopment Law(Health and Safety Code Section 33000. et seq.), the California Constitution and all applicable laws and ordinances. It does not present a specific plan for the redevelopment, rehabilitation and revitalization of any area within the Project Area; instead, it establishes a process and framework for implementation. This Plan is based upon a revised Preliminary Plan formulated and adopted by the City of Huntington Beach Planning Commission and the Agency on June 12, 2001 and July 16, 2001, respectively. ROSENOW SPEVACEK GROUP,INC. PAGE 1 DRAFT REDEVELOPMENT PLA§es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B IEPTION.1111DEFINITIONS The following.definitions will be used generally in the context of this Plan unless otherwise specified herein: A. "Agency" means the Redevelopment Agency of the City of Huntington Beach. B. "Annual Work Program" means that portion of the Agency's annual budget that sets forth programs and goals to be accomplished by the Agency during the fiscal year. C. "City" means the City of Huntington Beach, California. D. "City Council" means the legislative body of the City. E. "County" means the County of Orange, California. F. "Disposition and Development Agreement" means an agreement between a developer and the Agency that sets forth terms and conditions for improvement and redevelopment. G. "General Plan means the. General Plan of the City, ,the . comprehensive and long-term general plan for the physical development of the City, as it exists today or is hereafter amended. H. "Legal Description" means the metes and bounds legal description of the Project Area attached hereto as Exhibit B. I. "Map" means the map of the Project Area attached hereto as Exhibit A. J. "Method of Relocation" means the methods or plans adopted by the Agency pursuant to Sections 33352(f) and 33411 of the Redevelopment Law for the relocation of families, persons and businesses to be temporarily or permanently displaced by actions of the Agency. K. "Ordinance" means City Council Ordinance No. adopted on adopting this Plan. L. "Owner" means any person owning fee title to, or a long-term leasehold interest in real property within the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 2 DRAFT REDEVELOPMENT PLARes,No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B M. "Owner Participation Agreement" means an agreement between the Agency and an Owner, which sets forth terms and conditions for use of property, and/or its improvement and/or its redevelopment as to a specific property. N. "Person" means an individual(s), or any public or private entities. O. "Plan" means the Redevelopment Plan for the Southeast Coastal Redevelopment Project. P. "Project" means the Southeast Coastal Redevelopment Project. Q. "Project Area" means the Southeast Coastal Redevelopment Project Area, which is the territory this Plan applies to, as shown on Exhibit A. R. "Redevelopment Law" means the California Community Redevelopment Law (Health and Safety Code, Sections 33000, et sue.) as it now exists or may be hereafter amended. S. "State" means the State of California. T. "State Law" means an enactment of State of California, and includes such regulations as have the force of law. SECTION11 • • D, The boundaries of the Project Area are illustrated on the map attached hereto and incorporated herein as Exhibit A. The legal description of the boundaries of the Project Area is as described in Exhibit B attached hereto and incorporated herein. The Project Area is generally located in southeast Huntington Beach, between Newland Street and Magnolia Street, from Pacific Coast Highway to Hamilton Avenue. This Plan is intended to achieve the following goals: ■ To assist with.screening,design, or environmental improvements to mitigate impacts on adjoining neighborhoods and environmentally sensitive areas associated with modernization and reconstruction of the AES power generating plant; ROSENOW SPEVACEK GROUP, INC. PAGE 3 DRAFT REDEVELOPMENT PLANRes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B ■ To advance the cleanup of environmentally contaminated properties; ■ To facilitate the reuse of other Project Area properties including the Edison. and tank farm properties, by monitoring and assisting hazardous material cleanup, activities and ensuring that any ultimate development is compatible with surrounding neighborhoods and properties; ■ To facilitate the protection and restoration of environmentally sensitive wetlands in connection with . proposed redevelopment activities; ■ To permit the Agency to assist with park and trail improvements if any Project Area properties are designated for such uses; ■ Undertake public improvements in, and of benefit to, the project area, such as streets, flood control facilities, and other public facilities; ■ To ensure that Project Area revenues are pledged to projects that directly benefit the area, and that the Project Area remains separate and distinct from.the Agency's existing Huntington Beach Redevelopment Project Area; ■ To restrict the use of eminent domain to any non-fee ownership interests such as oil and gas leases; ■ Eliminating blight and environmental deficiencies in the Project Area; ■ Assembling of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area; ■ Replanning, redesigning, and developing properties, which are stagnant or improperly utilized; and ■ Increasing, improving, and preserving the community's supply of housing affordable to very low, low, and moderate income households. ROSENOW SPEVACEK GROUP,INC. PAGE 4 DRAFT REDEVELOPMENT PLANRes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B �SECTIION11 • PLAN ACTIO. .,ks (501) General The Agency proposes to alleviate and prevent the spread of blight and deterioration in the Project Area through: 1. The acquisition, installation, construction, reconstruction, redesign, or reuse of streets, utilities, curbs, gutters, sidewalks, traffic control devices, flood control facilities, buildings, structures, parks, playgrounds, and other public improvements. 2. The rehabilitation, remodeling, demolition, or removal of buildings, structures, and improvements. 3. The rehabilitation, development, preservation, provision, or construction of affordable housing in compliance with State Law. 4. Providing the opportunity for participation by owners and tenants presently located in the Project Area and the extension of preferences to persons engaged in business desiring to remain or relocate within the redeveloped Project Area. 5. Providing relocation assistance to displaced occupants in accordance with applicable State Law. 6. The development or redevelopment of land by private enterprise or public agencies for. purposes and uses consistent with the objectives of this Plan. 7. The acquisition of real property, personal property, any . interest in property, and improvements on the property.by purchase, lease, option, grant, bequest, gift, devise, or any other lawful means, or, where it is deemed necessary, by exercising the power of eminent domain, as permitted by Section 503 of this Plan, after conducting appropriate public hearings and making appropriate findings. 8. Site preparation and development and construction of necessary off-site improvements. 9. Improving open space. ROSENOW SPEVACEK GROUP, INC. PAGE 5 DRAFT REDEVELOPMENT PLAN Res.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B 10. Managing property acquired by the Agency. 11. Providing financing for the assistance of commercial and industrial development that increases the economic base of both the Project Area and the City, and the number of temporary and permanent jobs. 12. The disposition of real, personal, or any interest in property through methods such as sale, lease, exchange, subdivision, transfer, assignment, pledge, encumbrance or any other lawful means of disposition. 13. Recommending standards to ensure that property will continue to be used in accordance with this Plan. 14. The closure or vacation of certain streets and the dedication of other areas for public purposes. 15. Providing replacement housing, as required. 16. Applying for, receiving and utilizing grants and loans from federal or state governments or any other source. 17. Clearing or moving buildings, structures or other improvements from any real property acquired by the Agency. To accomplish these actions and to implement this Plan, the Agency is authorized to use the powers provided in this Plan, and the powers now or hereafter permitted by the Redevelopment Law and any other State law. (502) Property Acquisition 1. (503) Acquisition of Real Property The Agency may acquire real property by any means authorized by law, including by gift, grant, exchange, purchase, cooperative negotiations, lease or eminent domain. However, eminent domain may only be used by the Agency to acquire any non-fee ownership interest such as oil and gas leases. Except as otherwise provided by law, no eminent domain proceeding to acquire property within the Project Area shall be commenced after twelve (12) years following the date of ROSENOW SPEVACEK GROUP,INC. PAGE 6 DRAFT REDEVELOPMENT PLANRes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B adoption of the Ordinance. Such time limitations may be extended only by amendment of this Plan. To the extent required by law, the Agency shall not acquire real property on which an existing building is to be continued . on its present site and in its present form and use without the consent of the owner, unless: (1) such building requires structural alteration, improvement, modernization or rehabilitation; or (2) the site or lot on which the building is situated requires modification in size, shape or use; or (3) it is, necessary. to impose upon such property any of the standards, restrictions and controls of this Plan and the owner fails or refuses to participate in the Plan pursuant to Sections 506 through 509 of this Plan and applicable provisions of the Redevelopment Law. 2. (504) Acquisition of Personal Property, Any Other Interest in Real Property, or Any Improvements in Real Property Where necessary in the implementation of this Plan, the Agency is authorized to acquire personal property any other interest in property and any improvements on property by any lawful means. (505) Participation by Owners and Persons Engaged in Business 1. (506) Owner Participation This Plan provides for opportunities for participation in the redevelopment of property in the Project Area by the owners of all or part of such property if the owners agree to participate in the redevelopment in conformity with this Plan. Opportunities to participate in the redevelopment of property in the Project Area may include without limitation the rehabilitation of property or structures; the retention. of improvements; the development of all or a portion of the participant's property; the acquisition of adjacent or other properties from the _Agency; purchasing or leasing properties in the Project Area; participating with developers in the improvement of all or a portion of a participant's properties; or . other suitable means consistent with objectives and proposals of this Plan and with the Agency's rules governing owner participation and re-entry. ROSENOW SPEVACEK GROUP,INC. PAGE 7 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B In addition to opportunities for participation by individual persons and firms, participation, to the extent it is feasible, shall be available for two or more persons, firms or institutions, to join together in partnerships, corporations, or other joint entities. The Agency desires participation in redevelopment activities by as many owners and business tenants as possible. However, participation opportunities shall necessarily be subject to and limited by such factors as the provision or expansion of.public improvements and/or public utilities facilities; elimination and changing of land uses; realignment of streets; the ability of owners and business tenants to finance acquisition and development activities in accordance with this Plan; development experience, where applicable, availability of franchises, whether the proposed activities conform to and further the goals and objectives of this Plan; and any change in the total number of individual parcels in the Project Area. 2. (507) Reentry Preferences for Persons Engaged in Business in the Project Area The Agency shall extend reasonable preferences to persons who are engaged in business in the Project Area to relocate and reenter in business in the redeveloped area, if they otherwise meet the requirements prescribed by this Plan and the Agency's rules governing owner participation and re-entry. 3. (508) Owner Participation Agreements Under an Owner Participation Agreement, the participant shall agree to rehabilitate, develop, or use the property in conformance with this Plan and be subject to the provisions hereof. In the Owner Participation Agreement, participants who retain real property shall be required to join in the recordation of such documents as are necessary to make the provisions of this Plan applicable to their properties. Owner Participation Agreements shall include appropriate remedies such as the ability of the Agency to declare the Owner Participation Agreement terminated and acquire the real property or any interest therein, and sell or lease such real property or interest therein for rehabilitation or development in accordance with this Plan in the event a ROSENOW SPEVACEK GROUP, INC. PAGE 8 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B participant breaches the terms of such Owner Participation Agreement. If conflicts develop between the desires of participants for particular sites or land uses, the Agency is authorized to establish reasonable priorities and preferences among the owners and tenants. Where the Agency determines that a proposal for participation is not feasible, is not in the best interests of the Agency or City or that redevelopment can best be accomplished without affording a participant an opportunity to execute an Owner Participation Agreement, the Agency shall not be required to execute an Owner Participation Agreement. (509) Implementing Rules The provisions of Sections 505 through 508 of this Plan shall be implemented according to the rules adopted by the Agency prior to the approval of the Ordinance, which may be amended from time to time by the Agency. Such rules allow for Owner Participation Agreements with the Agency. (510) Cooperation with Public Bodies Certain public bodies are authorized by State Law to aid and cooperate, with or without consideration, in the planning and implementation of activities authorized by this Plan. The Agency shall seek the aid and cooperation of such public bodies and shall attempt to coordinate the implementation of this Plan with the activities of such public bodies in order to accomplish the purposes of redevelopment and to achieve the highest public good. Property of a public body shall not be acquired without its consent in accordance with State Law. The Agency shall seek the cooperation of all public bodies, which own or intend to acquire property in the Project Area. The Agency may impose on all public bodies the planning and design controls contained in and authorized by this Plan to ensure that present uses and any future development by public bodies will . conform to the requirements of this Plan. The Agency is authorized, to the extent permissible by law, to financially (and otherwise) assist public bodies in the cost of public land, buildings, facilities, structures or other improvements (within or outside the ROSENOW SPEVACEK GROUP, INC. PAGE 9 DRAFT REDEVELOPMENT PLAWes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B Project Area) where such land, buildings, facilities, structures, or other improvements are of benefit to the Project Area. (511) Property Management During such time as property, if any, in the Project Area is owned by the Agency, such property shall be under the management and control of the Agency. Such properties may be rented or leased by the Agency pending their disposition. ROSENOW SPEVACEK GROUP, INC. PAGE 10 DRAFT REDEVELOPMENT PLA§es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B (512) Payments to Taxing Agencies The Agency may pay, but is not required to pay, in any year during which it owns property in the Project Area directly to any City, County or district, including, but not limited to; a school district, or other public corporation for whose benefit a tax would have been levied upon such property had it not been tax exempt, an amount of money in lieu of taxes. In addition, to the extent required by State Law, the Agency shall remit payments to the affected taxing agencies in a manner consistent with Section 33607.5, Section 33676(b), and any other pertinent and applicable sections of the Redevelopment Law. All such amounts shall be calculated after the amount required to be deposited in the Low and Moderate Income Housing Fund has been deducted from the total amount of tax increment funds received by the Agency in the applicable fiscal year. Such payments shall be reduced in accordance with the provisions of Section 33607.5 of the Redevelopment Law or any other applicable statute. Such payments shall be the exclusive payments that are required to be made by the Agency to affected taxing entities for the duration of this Plan. Such payments may be subordinated to loans, bonds, or other Agency indebtedness as. provided by the Redevelopment Law. (513) Relocation of Persons Displaced by a Project 1. (514) Relocation Program In accordance with the provisions of the California Relocation Assistance Law (Government Code Section 7260, et se .) ("Relocation Assistance Act"), the guidelines adopted and promulgated by the.California Department of Housing and Community Development ("Relocation Guidelines") and the Rules and Regulations for Implementation of the California Relocation Assistance Law ("Relocation Rules") adopted by the Agency, the Agency shall provide relocation benefits and assistance to all "displaced" persons (including families, business concerns, and others) as may be required by law. Such relocation assistance shall be provided in the manner required by the Relocation Rules. The Agency shall make a reasonable effort to relocate displaced individuals, families, and commercial and professional establishments within the ROSENOW SPEVACEK GROUP, INC. PAGE 11 DRAFT REDEVELOPMENT P es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B Project Area. The Agency is also authorized to relocate displaced persons to locations outside the Project Area. 2. (515) Relocation Benefits and Assistance The Agency shall provide all relocation benefits required by law and in conformance with the Relocation Rules, Relocation Guidelines, Relocation Assistance Act, the Redevelopment Law, and any other applicable rules and regulations. (516) Demolition, Clearance, Public Improvements, Site Preparation and Removal of Hazardous Waste 1. (517) Demolition and Clearance The Agency is authorized, for property acquired by the Agency or pursuant to an agreement with the owner of. property, to demolish, clear or move buildings, structures, or other improvements from any real property as necessary to carry out the purposes of this Plan. 2.. (518) Public Improvements To the greatest extent permitted by law, the Agency is authorized to install and construct, or to cause to be installed and constructed, the public improvements and public utilities (within or outside the Project Area) necessary to carry out the purposes of this Plan. Specifically, the Agency may pay for, install, or construct the buildings, facilities, structures, and other improvements identified in Exhibit C, attached hereto, and may acquire or pay for land required therefore. Additionally, the Agency is authorized to install and construct, or to cause to be installed and constructed, within or without the Project Area, for itself or for any public body or entity for the benefit of the Project Area, public improvements and public facilities, including, but not limited to: over or underpasses; bridges; streets; curbs; gutters; sidewalks; street lights; sewers; storm drains; traffic signals; electrical distribution systems; natural gas distribution systems; cable TV and fiber optic communication systems; water distribution systems; parks; trails; plazas; playgrounds; motor vehicle parking facilities; landscaped areas; schools; civic, cultural and recreational facilities; camping facilities; and pedestrian improvements. The public facilities and infrastructure improvement projects ROSENOW SPEVACEK GROUP,INC. PAGE 12 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B that may be undertaken by the Agency pursuant to this Plan are identified in the General Plan, and capital improvement program, incorporated herein by reference. The Agency, as it deems necessary.to carry out the Plan and subject to the consent of the City Council, as may be required by the Redevelopment Law, may pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure or other improvement which.is publicly owned either within or outside the Project Area, upon both the Agency and the City Council making the applicable determinations required pursuant to the Redevelopment Law. When the value of such land or the cost of the installation and construction of such building, facility, structure or other improvement, or both, has been, or will be, paid or provided for initially by the City or other public corporation, the Agency may enter into a contract with the City or other public corporation under which it agrees to reimburse the City or other public corporation for all or part of the value of such land or all or part of the cost of such building, facility, structure or other improvements, or both, by periodic payments over a period of years. Any obligation of the Agency under such contract shall constitute an indebtedness of the Agency for the purposes of carrying out this Plan. 3. (519) Preparation of Building Sites Any real property owned or acquired by the Agency may be developed as a building site. In connection with such development it may cause, provide, or undertake or make provisions with other agencies for the installation, or construction of streets, utilities, parks, playgrounds and other public improvements necessary for carrying out this Plan. 4. (520) Removal of Hazardous Waste To the extent legally allowable, the Agency may, in its sole discretion, take any actions, which the Agency determines are necessary, and which are consistent with other State and federal laws, to remedy or remove a release of hazardous substances on, under, or from property within the Project Area. ROSENOW SPEVACEK GROUP,INC. PAGE 13 DRAFT REDEVELOPMENT PLAN Res.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B (521) Rehabilitation, Moving of Structures by the Agency and Seismic Repairs 1. (522) Rehabilitation and Conservation The Agency is authorized to rehabilitate and conserve, or to cause to be rehabilitated and conserved, any property, building or structure owned by the Agency. The Agency is also authorized to advise, encourage, and assist (through a loan program or otherwise) in the rehabilitation and conservation of property, buildings or structures in the Project Area not owned by the Agency to the extent permitted by the Redevelopment Law. The Agency is authorized to acquire, restore, rehabilitate, move and conserve buildings of historic or architectural significance. The Agency is authorized to conduct a program of assistance and enforcement to encourage owners of property within the Project Area to upgrade and maintain their property consistent with this Plan and such standards as may be developed for the Project Area. The extent of rehabilitation. in the Project Area shall be subject to the discretion of the Agency based upon such objective factors as: a. Compatibility of rehabilitation with land uses as provided for in this Plan. b. Economic feasibility of proposed rehabilitation and conservation activity. C. Structural feasibility of proposed rehabilitation and conservational activity. d. The undertaking of rehabilitation and conservation activities in an expeditious manner and in conformance with the requirements of this Plan and such property rehabilitation standards as may be adopted by the Agency. e. The. need for expansion of public improvements, facilities and utilities. f. The assembly and development of properties in accordance with this Plan. ROSENOW SPEVACEK GROUP,INC. PAGE 14 DRAFT REDEVELOPMENT PLAN Res.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B The Agency may adopt property rehabilitation standards for the rehabilitation of properties in the Project Area. 2. (523) Moving of Structures As necessary in carrying out this Plan, the Agency is authorized to move, or to cause to be moved, any building structures or other improvements from any real property acquired. 3. (524) Seismic Repairs For any project undertaken by the Agency within the Project Area for building rehabilitation or alteration in construction, the Agency may, by following all applicable procedures which are consistent with local, State, and federal law, take those actions which the Agency determines are necessary- to provide for seismic retrofits. (525) Property Disposition and Development 1. (526) Real Property Disposition and Development a. (527) General For the purposes of this Plan, the Agency is. authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber by mortgage or deed of trust, or otherwise dispose of any interest in real property. To the extent permitted by law, the Agency is authorized to dispose of real property by negotiated lease or sale without public bidding. Except as otherwise permitted by law, before any interest in property of the Agency acquired in whole or in part, directly or indirectly, with tax increment moneys is sold or leased for development pursuant to this Plan, such sale or lease shall be first approved by the City Council after public hearing, together with such findings as may then be required by State Law. The real property acquired by the Agency in the Project Area, except property conveyed by it to the City or any other public body, shall be sold or leased to public or private persons or entities for improvement and use of the property in . conformance with this Plan. Real property may be ROSENOW SPEVACEK GROUP, INC: " PAGE 15 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B conveyed by the Agency to the City, and where beneficial to the Project Area, to any other public body without charge or for an amount less than fair market value. All purchasers or lessees of property from the Agency shall be obligated to use the property for the purposes designated in this Plan, to begin and complete improvement of such property within a period of time which the Agency fixes as reasonable, and to comply with other conditions . which the Agency deems necessary to carry out the purposes of this Plan. During the period of redevelopment in the Project Area, the Agency shall ensure that all provisions of this Plan, and other documents formulated pursuant to this Plan, are being observed, and that development of the Project Area is proceeding in accordance with applicable development documents and time schedules. All development, whether public or private, must conform to this Plan and all applicable federal, State, and local laws, including without limitation . the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. Such development must receive the approval of all appropriate public agencies. b. (528) . Purchase and Development Documents To provide adequate safeguards to ensure that the provisions of this Plan will be carried out and to prevent the recurrence of blight, all real property sold, leased, or otherwise disposed of by the Agency, as well as all property subject to Owner Participation Agreements and Disposition and Development Agreements, shall be made subject to the provisions of this Plan by leases, deeds, contracts, agreements, declarations of restrictions, provisions of the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended, • conditional use permits, or other means. Where ROSENOw SPEVACEK GROUP,INC. PAGE 16 DRAFT REDEVELOPMENT PLAges.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B appropriate, as determined by the Agency, such documents or portions thereof shall be recorded in the office of the Recorder of the County. Leases, . deeds, contracts, agreements, and declarations of restrictions of the Agency may contain restrictions, covenants, covenants running with the land, rights of reverted, conditions subsequent, equitable servitudes, or any other provisions necessary to carry out this Plan. The Agency shall reserve such powers and controls in Disposition and Development Agreements or similar agreements as may be necessary to prevent transfer, retention, or use of property for speculative purposes and to ensure that redevelopment is carried out pursuant to this Plan. The Agency shall obligate lessees and purchasers of real property acquired in the Project Area and owners of property improved as part of a redevelopment project to refrain from restricting the rental, sale or lease of the property on the basis of race, color, religion, sex, marital status, ancestry, or national origin of any person. All deeds, leases, or contracts for the sale, lease, sublease or other transfer of land in the Project Area shall contain such nondiscrimination and non-segregation clauses as are required by Redevelopment Law. 2. (529) Personal Property Disposition For the purposes of this Plan, the Agency is authorized to sell, lease, exchange, subdivide, transfer, assign, pledge, encumber, or otherwise dispose of personal property or any other interest in property by any lawful means. 3. (530) Prevention of Discrimination a. (531) Redevelopment The redeveloper shall comply with all state and local laws, in effect from time to time, prohibiting discrimination or segregation by reason of race, color, creed, religion, sex, marital status, national ROSENOW SPEVACEK GROUP, INC. PAGE 17 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B origin or ancestry, in the sale, lease or occupancy of the property. Pursuant to the Redevelopment Law (Sections 33337 and 33435-33436), contracts entered into by the Agency relating to the sale, transfer or leasing of land, or any interest therein acquired by the Agency within any survey area or redevelopment project, shall comply with the provisions of said sections in substantially the form set forth therein. All such contracts shall further provide that the provisions of said sections shall be .binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument. b. (532) Deeds, Leases, and Contracts All deeds, leases, or contracts which the Agency proposes to enter into with respect to the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any land in the Project Area shall contain the following nondiscrimination clauses as prescribed by Redevelopment Law, Section 33436: In deeds the following language shall appear: "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, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee 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." In leases, the following language shall appear: ROSENOW SPEVACEK GROUP,INC. PAGE 18 DRAFT REDEVELOPMENT PLAt es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B "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, 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 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, sublessees, subtenants, or vendees in the premises herein leased." In contracts, the following language shall appear: "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, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 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 land." (533) Provision for Low and Moderate Income Housing The Agency shall comply with all of the low and moderate income housing requirements of the Redevelopment Law which are applicable to this Plan, including applicable expenditure, replacement, and inclusionary housing requirements, and in connection therewith, the Agency shall have all of the powers and ROSENOW SPEVACEK GROUP,INC. PAGE 19 DRAFT REDEVELOPMENT PLAN Res.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B authorization to act as may, from time to time, be provided by the Redevelopment Law and other applicable provisions of law. • 11MW41 • (601) Maps and Uses Permitted The Map attached hereto as Exhibit A and incorporated herein illustrates the location of the Project Area boundaries. The land uses permitted by this Plan shall be those permitted by the General Plan. and zoning ordinance, and all other state and local building nodes, guidelines, or specific plans as they now exist or are hereafter amended. A diagram of current permitted and prohibited uses is presented on Exhibit D. (602) Prohibited Uses Notwithstanding, any other provision of this Plan, the General Plan, and zoning ordinance, the following uses are not permitted by this Plan: Chapter 212 1 Industrial Districts (2.12.04) • Group Residential • Heliports Maintenance & Service Facilities • Sex Oriented Businesses (regulated by HBMC Chapter 5.70) Sex Oriented Businesses (regulated by HBMC Chapter 5.24 & 5.60) • Swap Meets, Indoor/Flea Markets • Vehicle/Equipment Repair • Vehicle Storage Chapter 204 Use Classifications (204.12 Industrial Use Classifications B. Industry, General.) Exclude: auto dismantling within an enclosed building, and small animal production and processing within an enclosed building ROSENOW SPEVACEK GROUP,INC. PAGE 20 DRAFT REDEVELOPMENT pi_A�Fes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B (603) Public Uses 1. (604) Public Street Layout, Rights-of-Way and Easements The public street system and street layout for the Project Area is illustrated on the Map identified as Exhibit A. The street system in the Project Area shall be developed in accordance with the General Plan, and all other state and local codes, guidelines, or master or specific plans as they now exist or are hereafter amended. Certain streets and rights-of-way may be widened, altered, realigned, abandoned, vacated, or closed by the City as necessary for proper development of the Project Area. Additional easements may be created by the Agency and City in the Project Area as needed for proper development and circulation. The public rights-of-way shall be used for vehicular, bicycle and/or pedestrian traffic as well as for public improvements, public and private utilities, and activities typically found in public rights-of-way. In addition, all necessary easements .for public uses, public facilities, and public utilities may be retained or created. 2. (605) Other Public and Open Space Uses Both within and, where an appropriate finding has been determined, outside of the Project Area, the Agency may take actions to establish, or enlarge public, institutional, or , non-profit uses, including, but not limited to, schools, community centers, auditorium and civic center facilities, criminal justice facilities, park and recreational facilities, parking facilities, transit facilities, libraries, hospitals, educational, fraternal, philanthropic and charitable institutions or other similar associations or organizations. All such uses shall be deemed to conform to the provisions of this Plan provided that such uses conform with all other applicable laws and ordinances and that such uses are approved by the City. The Agency may impose such other reasonable restrictions as are necessary to protect development and uses in the Project Area. ROSENOW SPEVACEK GROUP,INC. PAGE 21 DRAFT REDEVELOPMENT PLAtj es. No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B (606) Nonconforming Uses The Agency is authorized but not required to permit an existing use to remain in an existing building in good condition if the use does not conform to the provisions of this Plan, provided that such use is generally compatible with existing and proposed developments and uses in the Project Area. The Agency may take actions to, but is not required to, authorize additions, alterations, repairs or other improvements in the Project Area for buildings which do not conform to the provisions of this Plan where, in the determination of the Agency, such improvements would be compatible with surrounding Project Area uses and proposed development. (607) Interim Uses Pending the ultimate development. of land by developers and participants, the Agency is authorized to use or permit the use of any land in the Project Area for interim uses. Such interim use, however, shall conform to General Plan and zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. (608) General Control and.Limitations All real property in the Project Area is hereby made subject to the controls and requirements of this Plan. No real property shall be subdivided, developed, redeveloped, rehabilitated, or otherwise changed after the date of the adoption of this Plan except in conformance with the goals and provisions of this Plan and the regulations and requirements of the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended. The land use controls of this Plan shall apply for the periods set forth in Section 1000 below. The type, size, height, number and use of buildings within the Project Area will be k controlled by the General Plan and applicable zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended. 1. (609) New Construction All construction in the Project Area shall comply with all applicable State and local laws in effect from time to time. In addition to the City land use regulations and requirements ROSENOW SPEVACEK GROUP,INC. PAGE22 DRAFT REDEVELOPMENT PLAffes'No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B in the Project Area, additional specific performance and development standards may be adopted by the Agency to control and direct improvement activities in the Project Area. 2. (610) Rehabilitation Any existing structure .within the Project Area which the Agency enters into an agreement for retention and rehabilitation shall be repaired, altered, reconstructed, or rehabilitated in accordance with the applicable law and in such a manner that it will meet the following requirements: be safe and sound in all physical respects, be attractive in appearance and not detrimental to the surrounding uses. 3. (611) Number of Dwelling Units The General Plan shall regulate the total number of dwelling units in the Project Area. As of the date of adoption of this Plan, there are zero (0) dwelling units in the Project Area. 4. (612) Open Space and Landscaping The approximate amount of open space to be provided in the Project Area is the total of all areas so designated in the . General Plan and zoning ordinance, and all other, state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended, and those areas in the public rights-of-way or provided through site coverage limitations on new.development as established by the City and this Plan. Landscaping shall be developed in the Project Area to ensure optimum use of living plant material in conformance with the standards of the City. 5. (613) Limitations on Type, Size and Height of Buildings The limits on building intensity, type, size and height, shall be established in accordance with the provisions of the General Plan and zoning ordinance, and all other state and local building codes, guidelines, or master or specific plans as they now exist or are hereafter amended. 6. (614) Signs All signs shall conform to .the requirements of the City. Design of all proposed new signs shall be subject to the review of.the City and the procedures of this Plan. ROSENOW SPEVACEK GROUP,INC. PAGE 23 DRAFT REDEVELOPMENT PLANRes. No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B 7. (615) Utilities The Agency, in conformity with municipal code, and City policies, shall require that all utilities be placed underground whenever physically possible and economically feasible on projects funded in whole or in part by the Agency or subject to a Disposition and Development Agreement or an Owner . Participation Agreement. 8. (616) Subdivision of Parcels No parcels in the Project Area, including any parcel retained by a participant, shall be consolidated, .subdivided or re- subdivided without the approval of the City. 9. (617) Variations The Agency is authorized to permit variations from the limits, restrictions and controls established by this Plan. In order to permit any such variation, the Agency must determine all of the following: a. The application of certain provisions of this Plan would result in practical difficulties or unnecessary hardships inconsistent with the general purposes and intent of this Plan. b. There are exceptional circumstances or conditions applicable to the property or to the intended development of the property, which do not apply generally to other properties having the same standards, restrictions, and controls. C. Permitting a variation will not be materially detrimental to the public welfare or injurious to property or improvements in the area. d. Permitting a variation will not be contrary to the objectives of this Plan. No such variation shall be granted other than a minor departure from the provisions of this Plan. In permitting any such variation, the Agency shall impose such conditions as are necessary to protect the public health, safety, or welfare, and to assure compliance with the purposes of this Plan. ROSENOW SPEVACEK GROUP,INC. PAGE 24 DRAFT REDEVELOPMENT PLAtfes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B (618) Design for Development Within the limits, restrictions, and controls established in this Plan, and subject to the provisions of Sections 601 and 608 herein, the Agency is authorized to establish land use, heights of buildings, land coverage, setback requirements, design criteria, traffic circulation, traffic access, and other development and design controls necessary for proper development of both private and public areas within the Project Area. Among the purposes of the design for development is to elevate the quality and character of future Project Area development by restricting land use and development standards within the parameters of the General Plan (and all other applicable codes and ordinances). No new improvement shall be constructed, and no existing improvement shall be substantially modified, altered, repaired, or rehabilitated except in accordance with this Plan and any such controls approved by the Agency. In the case of property, which is the subject of a Disposition and Development Agreement or an Owner Participation Agreement with the Agency, such property shall be developed in accordance with the provisions of such Agreement. One of the objectives of this Plan is to create an attractive and pleasant environment in the Project Area. Therefore, such plans shall give consideration to good design, open space and other amenities to enhance the aesthetic quality of the Project. Area. The Agency shall not approve any plans that do not comply with this Plan except as permitted by Section 617 of this Plan. (619) Building Permits Any building permit that is issued for the rehabilitation or construction of any new building or any addition, construction, moving, conversion or alteration to an existing building in the Project Area from the date of adoption of this Plan must be in conformance with the provisions of this Plan, any design for development adopted by the Agency, any restrictions or controls established by resolution of the Agency, and any applicable participation or other agreements. (701) General Description of the Proposed Financing Methods Upon adoption of this Plan by the City Council, the Agency is authorized to finance implementation of this Plan with assistance ROSENOW SPEVACEK GROUP, INC. PAGE 25 DRAFT REDEVELOPMENT PLAt�Fes,No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B from local sources, the State and/or the federal government, property tax increment, interest income, Agency bonds, donations, -loans from private financial institutions or any other legally available source. The Agency is also authorized to obtain advances, borrow funds, issue bonds or other obligations, and create indebtedness in carrying out this Plan. The principal and interest on such indebtedness may be paid from tax increment revenue or any other funds available to the Agency. Advances and loans for survey and planning and for the operating capital for administration of this Plan may be provided by the City until adequate tax increment revenue or other funds are available to repay the advances and loans. The City or other public agency, as it is able, may also supply additional assistance through issuance of bonds, loans and grants and in-kind assistance. Any assistance shall be subject to terms established by an agreement between the Agency, City and/or other public agency providing such assistance. The Agency may issue bonds or other obligations and expend their proceeds to carry out this Plan. The Agency is authorized to issue bonds or other obligations as appropriate and feasible in an amount sufficient to finance all or any part of Plan implementation activities. The Agency shall pay the principal and interest on bonds. or other obligations of the Agency as they become due and payable: (702) Tax Increment Revenue For the purposes of the collection of property tax revenue pursuant to this Plan, the "effective date of the ordinance" shall mean and refer to , 2001 (30 days after the City Council adopted the Ordinance). All taxes levied upon taxable property within the Project Area each year by or for the benefit of the State, County, City, district, or other public corporation (hereinafter called "Taxing Agency" or "Taxing Agencies") after the effective date of the ordinance, shall be divided as follows: 1. That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of said Taxing Agencies upon the total sum of the assessed value of the taxable property in the Project Area as shown upon the assessment roll used in connection with the taxation of such property by such Taxing Agency, last equalized prior to the effective date of the ordinance, shall ROSENOW SPEVACEK GROUP,INC. PAGE 26 DRAFT REDEVELOPMENT PLA§es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B be allocated to and when collected shall be paid to the respective Taxing Agencies as taxes by or for said Taxing Agencies on all other property are paid (for the purpose of allocating taxes levied by or for any Taxing Agency or Agencies which did not include the territory in the Project Area on the effective date of the ordinance but to which such territory has been annexed or otherwise included after such effective date, the assessment roll of the County last equalized on the effective date of the Ordinance shall be used in determining the assessed valuation of the taxable property,in the Project Area on said effective date). 2. That portion of said levied taxes each year in excess of such amount shall be allocated to and when collected shall be paid into a special fund of the Agency to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, the Project and this Plan. Unless and until the total assessed valuation of the taxable property in the Project Area exceeds the total assessed value of the taxable property in the Project Area as shown by the last equalized assessment roll referred to in paragraph (1.) hereof,.all of the taxes levied and collected upon the taxable property in the Project Area shall be. paid to the respective_ Taxing Agencies. When said loans, advances, and indebtedness, if any, and interest thereon, have been paid, all monies thereafter received from taxes upon the taxable property in the Project Area shall be paid to the respective Taxing Agencies as taxes on all other property are paid. 3. That portion of the taxes in excess of the amount identified in paragraph (1.) above which is attributable to a tax rate levied by a Taxing Agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of and interest on any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that Taxing Agency. This paragraph (3.) shall only apply to taxes levied to repay bonded indebtedness approved by the voters on or after January 1, 1989. The Agency is authorized to make pledges as to specific advances, loans and indebtedness as appropriate in carrying out the Project. The portion of taxes allocated and paid to the Agency pursuant to ROSENOW SPEVACEK GROUP, INC. PAGE 27 DRAFT REDEVELOPMENT PLoes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B subparagraph (2.) above is irrevocably pledged to pay the principal of and interest on loans, monies advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or refinance, in whole or in part, the redevelopment program for the Project Area. (703) Agency Bonds The Agency is authorized to issue bonds and other obligations from time to time, if it deems it appropriate to do so, in order to finance all or any part of Plan implementation activities. Neither the members of the Agency nor any persons executing the bonds are liable personally on the bonds or other obligations by reason of their issuance. The bonds and other obligations of the Agency are not a debt of the City, County, or the State; nor are any of its political subdivisions liable for them; nor in any event shall the bonds or obligations be payable out of any funds or properties other than those of the Agency; and such bonds and other obligations shall so state on their face. The bonds and other obligations do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. (704) Other Loans and Grants Any other loans, grants, guarantees or financial assistance from the federal government, the State, or any other public or private source will be utilized, if available, as appropriate in carrying out this Plan. In addition, the Agency may make loans as permitted by law to public or private entities for any of its redevelopment purposes. (705) Rehabilitation Loans, Grants, and Rebates To the .greatest extent allowed by State Law, the Agency and the City may commit funds from any source to rehabilitation programs for the purposes of loans, grants, or rebate payments for self- financed rehabilitation work. The rules and regulations for such programs shall be those which may already exist or which may be developed in the future. The Agency and the City shall seek to acquire grant funds and direct loan allocations from State and federal.sources, as they may be available from time to time, for the carrying out of such programs. ROSENOW SPEVACEK GROUP, INC. PAGE 28 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT . Exhibit B The City shall aid and cooperate with the Agency in carrying out this Plan and shall take all reasonable actions necessary to ensure the continued fulfillment of the purposes of this Plan and to prevent the recurrence or spread in the Project Area of conditions of blight. Actions by the City may include, but shall not be limited to, the following: 1. Institution and completion of proceedings for opening, closing, vacating, widening, or changing the grades of streets, alleys, and other public rights-of-way, and for other, necessary modifications of the streets, the street layout, and other public rights-of-way in the Project Area. Such action by the City shall include the requirement of abandonment and relocation by the utility companies of their operations in public rights-of-way as appropriate to carry out this Plan, provided that nothing in this Plan shall be deemed to require the cost of such abandonment, removal, and relocation to be borne by others than those legally required to bear such costs. 2. Institution and completion of proceedings necessary for changes and improvements to publicly-owned parcels and utilities in the Project Area. 3. Performance of the above, and of all other functions and services relating to public health, safety, and physical development normally rendered in accordance with a schedule which will permit the redevelopment of the Project Area to be commenced and carried to completion without unnecessary delays. 4. Imposition, whenever necessary and applicable, of appropriate design controls within the limits of this Plan in the Project Area to ensure proper development and use of land. 5. Provisions for administration/enforcement of this Plan by the City after completion of development. 6. The undertaking and completion of any other proceedings necessary to carry out the Project.. 7. The expenditure of any City funds in connection with redevelopment of the Project Area pursuant to this Plan. ROSENOW SPEVACEK GROUP;WC. PAGE 29 DRAFT REDEVELOPMENT PLAtFes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B 8. Revision of the City zoning ordinance, adoption of master or specific plans or execution of statutory development agreements to permit the land uses and facilitate the development authorized by this Plan. Upon adoption, the administration and enforcement of this Plan or other documents implementing this Plan shall be performed by the City and/or the Agency, as appropriate. The provisions of this Plan or other documents entered into pursuant to this Plan may also be enforced by litigation or similar proceedings by either the Agency or the City. Such remedies may include, but are not limited to, specific performance, damages, re-entry onto property, power of termination, or injunctions. In addition, any recorded provisions, which are expressly for the benefit of owners of property in the Project Area, may be enforced by such owners. • 111 � • The following financial and time limitations shall apply to this Plan: (1001) Amount of Bonded Indebtedness Outstanding At Any One Time The amount of bonded indebtedness, to be repaid in whole or in part from the allocation of taxes pursuant to Section 33670 of the Redevelopment Law, which can be outstanding at one time, shall not exceed $50 million, except by amendment to this Plan. (1002) Time Frame to Incur Indebtedness The time limit on the establishing of loans, advances, and indebtedness to be paid with the proceeds of property taxes received pursuant to Section 33670 of the Redevelopment Law to finance in whole or in part the redevelopment project shall be a period of twenty (20) years from the effective date of the Ordinance. This limit, however, shall not prevent the Agency from incurring debt to be paid from the low and moderate income housing fund or establishing more debt in order to. fulfill the Agency's housing obligations under Section 33333.8 of the Redevelopment Law. The loans, advances, or indebtedness may be repaid over a period of time longer than this time limit as ROSENOW SPEVACEK GROUP, INC. PAGE 30 DRAFT REDEVELOPMENT PLA es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B provided herein. No loans, advances, or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the Agency beyond this time limitation. This limit shall not prevent the Agency from financing, refunding, or restructuring indebtedness after the time limit if the indebtedness is not increased and the time during which the indebtedness is to be repaid is not extended beyond the time limit to' repay indebtedness required by this section. Provided, however, that the time limits established in this Section 1002 may be extended in the manner provided by applicable law. (1003) Duration of This Plan Except for the nondiscrimination and nonsegregation provisions of this Plan, and recorded covenants implementing the same, which shall remain in effect in perpetuity, and except as otherwise expressly provided herein, the provisions of this Plan shall be effective, and the provisions of other documents formulated pursuant to this Plan shall be effective for thirty (30) years from the date of adoption of the Ordinance adopting this Plan. After the expiration of the effective term of the Plan, the Agency shall have no authority to act,pursuant to the Plan except to pay previously incurred indebtedness and to enforce existing covenants or contracts. However, if the Agency . has not completed its housing obligations pursuant to Section 33333.8 of the Redevelopment Law, the Agency shall retain its authority to implement requirements.under 33333.8, including the ability to incur and pay indebtedness for this purpose, and shall use this authority to complete these housing obligations as soon as is reasonably possible. (1004) Time Frame to Collect Tax Increment Revenue Except as otherwise provided herein or by Redevelopment Law, the time limitation for the receipt of tax increment and the payment of indebtedness with the tax increment pursuant to Section 33670 of the Redevelopment Law shall be forty-five (45) years from and after the date of adoption of the Ordinance .adopting this Plan. ROSENOW SPEVACEK GROUP, INC. PAGE 31 DRAFT REDEVELOPMENT PLA "-No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B This Plan- may be amended by means of the procedure established in Sections 33450-33458 of the Redevelopment Law or by any other procedure hereafter established by law: ROSENOW SPEVACEK GROUP,INC. PAGE 32 Exhibit A Project Area MaLWAM ��. +�+" "6ea'i'• li�. _ +�.a�a� cC �!j x k `: a +�3 e'�? 6 ��[ fy,""'?ft�� ,�i: ." � - ':.:a: x.: ry#�l ��+Y�,�O r r^ � t` ♦ —r iar*wv0�`t''G.e' �2'W.,��Q s�. (N � 3��}, 'rsN� ilia••'{• tL b , wall + ,�r � � i c 3f;KE y;k" k f 1irx fir $ f a�$'��a3r �} + r 7 $x��,�� r x„1 e A pp,, & �4 K s c�"' �s, a Mar} i � y g y }."• f�,v �zxn.,e:'�4 xC .j ,FAY ?'{ ,a 3;, ,.� �� ."' �•�:i=�4,+p o4,,e��'�.��%y �'.-s..� .,�``.��.z`: �.a?+'. Res.No.331 Exhibit B ®raft Redevelopment Plan Southeast Coastal Redevelopment Project All that certain land in the City of Huntington Beach, County of Orange, State of California lying over a portion of Fractional Sections 13 and 24, Township 6 South, Range11 West, San Bernardino Meridian, in the Rancho Las Bolsas, as shown on the map filed in Book 51, page 14 of Miscellaneous Maps, in Records of said County, more particularly described as follows: Beginning at the intersection of the centerline of Hamilton Avenue, 100 feet wide,with the centerline of Magnolia Street, 100 feet wide, as shown on the Parcel Map filed in Book 226, pages 19 thru 21 inclusive, of Parcel Maps, in Records of said County. Said centerline intersection also being GPS No. 5011, having a grid coordinate value of Northing 2,184,630.70 U.S. survey feet and Easting 6,037,967.14 U.S. survey feet based upon the California State Plane Coordinate System of 1983, Zone VI, (1991.35 epoch adjustment), as shown on the map filed in Book 150, pages I thru 9 inclusive, of Records of Surveys, in Records, of said County. 1 Thence S 0017'18" W, 2119.86 feet along the centerline of Magnolia Street, to the beginning of a tangent curve concave northwesterly, having a radius of 1000.00 feet, as shown on Record of Survey 99-1000, filed in Book 176, pages 10 thru 19 inclusive of Records of Surveys, in Records of said County; 2 Thence southerly and southwesterly 478.69 feet along said curve (chord length of 474.13 feet) through a central angle of 27125'36" to it's intersection with the centerline of Banning Avenue, 80 feet wide, as shown on said Record of Survey 99-1000 said point of intersection also being GPS 5006, having a grid coordinate value of Northing 2,182,050.83 U.S. survey feet and Easting 6,037,841.76 U.S. survey feet based upon the California State Plane Coordinate System of 1983, Zone VI, (1991.35 epoch adjustment), as shown on said Record of Survey filed in Book 150, page I thru 9 inclusive, of Records of Surveys; 3 Thence continuing southwesterly 283.97 feet along said curve (chord length of 283.02 feet) through a central angle of 16016'13" as shown on said Record of Survey 99-1000; ROSENOW SPEVACEK GROUP, INC. PAGE 34 DRAFT REDEVELOPMENT PLAN Res.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B 4 Thence S 43059'07" W, 225.64 feet to a curve concave southeasterly, having a radius of 828.64 feet, as shown on said Record of Survey 99- 1000; 5 Thence southwesterly 140.60 feet along said curve .(chord length of 140.44 feet)through a central angle of 9043'19", to it's intersection with the northeasterly line of the land of Daisy E. Hurley Thorpe Hook as shown on the Record of Survey filed in Book 29, page 27 of Records of Surveys; 6 Thence N 51008'17"W 146.50 feet, non tangent to last said curve a radial line to said point of non-tangency bears N 55044'12"W; 7 Thence N 44056'44" W, 490.29 feet along the northeasterly line of said Record of Survey filed in Book 29, page 27, as shown on Record of Survey 99-1000 filed in Book 176, pages 10 thru 19 inclusive, of Records of Surveys; 8 Thence leaving said northeasterly line S 35032'58" W, 912.93 feet; along the southeasterly line of the land as described in Book 6893, page 573 thru 576 inclusive of Official records in Orange County Records and shown on the Record of Survey filed in Book 74, page 11 of Records of Surveys, extended to the State Highway layout line, for Pacific Coast Highway as shown on said Record of Survey 99-1000; 9 Thence N 54027'02" W, 2014.02 feet, along said. layout line to it's intersection with Newland Street, 40 foot wide, as shown on said Record of Survey 99-1000; 10 Thence N 35031'57" E, 780.71 feet, to the beginning of a curve, concave westerly, having a radius of 350.00 feet: said point also being GPS 5007, having a grid coordinate value of Northing 2,183,052.60 U.S. survey feet and Easting 6,035,254.55 U.S. survey feet based upon the California State Plane Coordinate System of 1983, Zone Vl, (1991.35 epoch adjustment), as shown on said Record of Survey filed in Book 150, page 1 thru 9 inclusive, of Records of Surveys; 11 Thence northeasterly and northerly 215.36 feet (chord length is 211.98 feet)through a central angle of 35015'18'; 12 Thence N 001638" E, 1401.35 feet, along the centerline of Newland Street as shown on said Record of Survey 99-1000, said centerline also being the north-south center.Section line of said fractional Section 13, to it's intersection with the centerline of Hamilton Street, 100 feet wide, said point of intersection also being GPS 5010 R1, having a grid coordinate value of Northing 2,184,655.64 U.S. survey feet and Easting 6,035,326.50 U.S. survey feet based upon the California State Plane Coordinate System of ROSENOW SPEVACEK GROUP,INC. PAGE 35 DRAFT REDEVELOPMENT PLA es. No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B 1983, Zone VI, (1991.35 epoch adjustment), as shown on said Record of Survey filed in Book 150, page 1 thru 9 inclusive, of Records of Surveys; 13 Thence S 89027'32" E, 2640.75 feet to the Point Of Beginninq (Contains 184.475 acres more or less) Excepting therefrom the following exception areas: Exception Area No. 1 The land described as Parcels 1 and 2, as shown on the Parcel Map filed in Book 48, page 41 of Parcel Maps, filed in Orange County Records, more particularly described as follows: Beginning at the centerline intersection of Newland Street and Hamilton. Avenue,said intersection also being said GPS 5010 R1; A Thence S 8902732" E, 86.00 feet, along the centerline of Hamilton Avenue; B Thence leaving said centerline S 0132'28"W, 50.00 feet to the south line of Hamilton Avenue and the True Point of Beginning; C Thence S 89027'32" E, 554.12 feet, along said south line; D Thence leaving said south line S 0016'44"W, 345.03 feet; E Thence N 89028'03"W,80.00 feet; F Thence S 001644"W, 120.00.feet; G Thence N 89028'03 W, 520.07-feet, to a point on the east line of Newland Street, 60.00 feet wide (20 feet west of and 40 feet east of centerline); H Thence along said east line N 0016'23" E, 355.12 feet; I Thence leaving said east line S 89027'32" E, 46.00 feet; J Thence N 0016'23" E, 110.00 feet to the True Point Of Beginning. (Contains 6.070 acres more or less) Exception Area No. 2: The land as described as Parcel 1, as shown on the Parcel Map filed in Book 155, page 28 of Parcel Maps, in Orange County Records, more particularly described as follows: Beginning at the centerline intersection of Newland Street and Hamilton Avenue, said intersection also being said GPS 5010 R1; I Thence S 89027'32" E, 820.45 feet along said centerline of Hamilton Avenue; II Thence leaving said centerline S 0032'28`'W, 50.00 feet to the south line of said Hamilton Avenue and the True Point Of Beginning; III Thence S 89027'32" E, 500.00 feet along said south line; IV Thence leaving said south line S 0016'46"W, 609.93 feet; ROSENOW SPEVACEK GROUP, INC. PAGE 36 i DRAFT REDEVELOPMENT PLAtfes..No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B V Thence N 89027'56" W, 77.20 feet to a point on a non-tangent curve concave southwesterly and having a radius of 457.69 feet, a radial line through said point bears N 47°24'59" E; VI Thence northwesterly 374.50 feet along said curve (chord length is 364.14 feet)through a central angle of 4605255"to a tangent line; j VII Thence N 89°2T56"W, 89.36 feet along said tangent line; Vlll Thence N 0016'46" E, 465.13 feet to the True Point Of Beginning. (Contains 5.937 acres more or less) i Total Net area of Redevelopment Area: 172.468 acres more or less Unless otherwise noted, all distances are ground distances in this description, to obtain grid distances, based upon the California Coordinate System, (CCS83), Zone VI, (1991.35 epoch adjustment), multiply ground distances by .999997441. (original signed) �c. ORD Rs osep' I G DorlAth R 1-S 7340 1r Date (Joseph G Derteth P.L.S 7340 Date 9/25/01) ROSENOW SPEVACEK GROUP, INC. PAGE 37 Res.No.331 Exhibit B Draft Redevelopment Plan Southeast Coastal Redevelopment Project Infrastructure Improvements",-. ,,' Housing Programs Increase and improve the community's supply of affordable housing for very low, low, and moderate income households. Projects include, but are not limited to, the following: ■ Citywide Affordable Programs: The Agency will invest housing set- aside funds into the creation or rehabilitation of housing for low and moderate income households throughout the City. Infrastructure Programs Improve pedestrian, bicycle, and vehicular traffic flows, upgrade utilities and drainage systems, enhance public safety, and promote recreational opportunities in and around the Project Area. Projects include, but are not limited to, the following: ■ Storm Drain Projects: Upsize existing storm drains, install new storm drains, and. install new pumping stations to facilitate future development and improve inadequate facilities. ■ Flood Control Projects: Complete channel lining of the Orange County Flood Control Channel, and other flood management programs or projects as warranted. ■ Street Improvements: Widen Newland Street, Hamilton Avenue, and Magnolia Street, and other streets as needed and install and/or upgrade the traffic signalization systems as necessary. ■ Water System Projects: Install new water mains along Edison Avenue and Newland Street, as well as a new water reservoir and pump. station in the,Project Area. ■ Streetscape Projects: Continue implementation of median and other streetscape projects along Pacific Coast Highway and other arterials serving Project Area. ■ Recreational/Open Space Projects: Protect environmentally sensitive areas, restore wetlands, and work with State, County, and nonprofit agencies on recreational, beach paths, and other improvements to ROSENOW SPEVACEK GROUP,INC. PAGE 38 DRAFT REDEVELOPMENT pL_&es.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B Project Area open spaces. Public Facility Programs Develop and renovate community facilities that meet the needs of both the Project Area and City when there has been a finding of benefit to the Project Area, such as: ■ Edison Community Center ■ Edison Park 2 ■ Edison High School and neighborhood schools Commercial Rehabilitation and Economic Development Programs Implement projects that result in the redevelopment of obsolete structures and cleanup contaminated properties. Projects include, but are not limited to, the following: ■ Ascon Landfill Redevelopment: Work with property owners of Ascon Landfill to ensure timely and effective remediation and reuse of the Ascon Landfill ■ Transition of Existing Obsolete Uses: As existing industrial uses in Project Area become obsolete and recycle, ensure that future development is more compatible with surrounding neighborhoods and other environmentally sensitive areas. ■ AES Generating Facility: Assist with screening, design, or environmental improvements to mitigate impacts on adjoining neighborhoods and environmentally.sensitive areas associated with modernization and reconstruction of the AES power generating plant ROSENOW SPEVACEK GROUP,INC. PAGE 39 Res.No.331 Exhibit B ®raft Redevelopment Plan Southeast Coastal Redevelopment Project . . . - . . - . Land Use A diagram of uses permitted by the City's General Plan follows. As stated in Section VI of this Plan, uses permitted in the Project Area shall be those permitted by the General Plan and zoning ordinance, as they exist today or are hereafter amended. However, this Plan prohibits the following uses from the Project Area, notwithstanding any other provision of this Plan, the General Plan, or zoning ordinance: Chapter 212 1 Industrial Districts • 212.04 o Group Residential o Heliports Maintenance & Service Facilities o Sex Oriented Businesses (regulated by HBMC Chapter 5.70) o Sex Oriented Businesses (regulated by HBMC Chapter 5.24 & 5.60) o Swap Meets, Indoor/Flea Markets o Vehicle/Equipment Repair o Vehicle Storage Chapter 204 Use Classifications • 204.12 Industrial Use Classifications o B. Indus, General. Exclude: auto dismantling within an enclosed building, and small animal production and processing within an enclosed building ROSENOW SPEVACEK GROUP, INC. PAGE 40 DRAFT REDEVELOPMENT PLANRes.No.331 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Exhibit B General Plan s{ air I t Southeast Coastal �.s r": -.�` S:.'e xsTC ->' ,�^'` ✓#/„°Zx �" ,� t Area it -41 .4 C a�ypmph LOU Ba m�7r "w rg AV. 'L _. 4F,Y tow- ROSENOW SPEVACEK GROUP,INC. PAGE 41 Res. No. 331 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency ' of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing, resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at a- regular meeting of said Redevelopment Agency held on' the 22nd day of January, 2002 and that it was so adopted by the following vote: AYES: Green, Dettloff, Bauer, Cook, Boardman NOES: None ABSENT: Houchen ABSTAIN: None Clerk of the kedevelopmentAgency of the City of Huntington Beach, CA