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Redevelopment Agency - 334
RESOLUTION NO. 314_ A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APPROVING AND AUTHORIZING TRANSMITTAL OF THE REPORT TO THE CITY COUNCIL FOR THE SOUTHEAST COASTAL REDEVELOPMENT PROJECT WHEREAS, the Redevelopment Agency of the City of Huntington Beach ("Agency") has prepared a Redevelopment Plan for the Southeast Coastal Redevelopment Project ("Plan"); and The Agency has prepared a Report to the City Council on the Plan which provides all information required by Section 33352 of the California Community Redevelopment Law, as set forth in Health and Safety Code Sections 33300 et. seq. ("Law"). NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. That the Redevelopment Agency approves and authorizes for transmittal the Report to the City Council on the Southeast Coastal Redevelopment Plan, in the form attached hereto as Exhibit A and incorporated by this reference as though fully set forth herein, to the City Council of the City of Huntington Beach for its information and consideration; and 2. That the Redevelopment Agency hereby transmits to the City Council the proposed Redevelopment Plan for the Southeast Coastal Redevelopment Project, in the form attached hereto as Exhibit B and incorporated by this reference as though fully set forth herein. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof on the 15th of April, 2002. Chairman ATTEST: APPROVED AS TO FORM: 14 �000 G Agency Clerk oq-23'62 Agen�y General Counsel O of REVIEWED AND APPROVED: INI TE AND APPROVED: Executi e Director D puty xecutive Director PDA:2002 resolutions:Agency—Southeast Plan Approval RLS 2002-0143 Res.No.334 Ex.A Report to the City Council Res.No.334 Ex.A Southeast Coastal Redevelopment Project Report to the City Council April 8, 2002 Redevelopment Agency of the City of Huntington Beach 2000 Main Street, 5 h Floor Huntington Beach, California 92648 P.Wwwl!;"M • Rosenow Spevacek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701-4822 Phone: (714)541-4585 Fax: (714)836-1748 E-Mail: info@webrsg.com Res.No.334 Ex.A Table of Contents Introduction...........................................................................................i Plan Adoption Process..........................................................................................iv The Reasons for Selection of the Project Area, Including a Description of Proposed Projects and How Such Projects Will Improve or Alleviate Blight..............................................................A-1 Location and Socioeconomic Profile..................................................................A-3 A Determination as to Whether the Project Area is Predominately Urbanized.A-4 A Description of the Projects Proposed by the Agency.....................................A-5 A Description of How the Proposed Projects Will Improve and Alleviate BlightA-7 A Description of the Physical and Economic Conditions Existing in the Project Area............................................................................... B-1 LegalContext of Blight........................................................................................B-1 Blighting Conditions in the Project Area.............................................................B-2 Photo Survey.................................................................................. B-11 Five-Year Implementation Plan........................................................ C-1 Plan Goals and Objectives.................................................................................C-1 BlightingConditions............................................................................................C-2 Financial Resources...........................................................................................C-4 Five-Year Programs and Expenditures..............................................................C-6 Affordable Housing Compliance Plan ..............................................................C-11 An Explanation of Why the Elimination of Blight Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing........ D-1 Why Private Enterprise Alone Cannot Eliminate Blight.....................................D-1 Reasons for the Provisions of Tax Increment....................................................D-2 Res.No.334 Ex.A Method of Financing and Economic Feasibility of the Plan.............E-1 Projected Tax Increment Revenues...................................................................E-3 Economic Feasibility Analysis............................................................................E-7 The Method of Relocation.................................................................F-1 An Analysis of the Preliminary Plan................................................. G-1 The Report and Recommendations of the Planning Commission... H-1 Report and Recommendation of the Project Area Committee..........1-1 A Statement of Conformance to the General Plan...........................J-1 The Environmental Impact Report................................................... K-1 Report of the County Fiscal Officer..................................................L-1 Neighborhood Impact Report...........................................................M-1 A Summary of the Agency's Consultations with Affected Taxing Entities and a Response to Said Entities' Concerns Regarding the Plan................................................................................................... N-1 Res.No.334 Ex.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/NESI 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 Report to the City Council ("Report") has been prepared by the Agency in accordance with Section 33000 et seg. of the Health and Safety Code of the State of California ("Redevelopment Law"). Consistent with Section 33352 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 Selection of the Project Area, Including a Description of Proposed Projects and How Such Projects Will Improve or Alleviate Blight. SECTION B. A Description of the Physical and Economic Conditions Existing in the Project Area. SECTION C. Five-Year Implementation Plan. SECTION D. An Explanation of Why the Elimination of Blight Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing. SECTION E. Method of Financing and Economic Feasibility of the Plan. SECTION F. The Method of Relocation. SECTION G. An Analysis of the Preliminary Plan. SECTION H. The Report and Recommendations of the Planning Commission. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A SECTION I. Report and Recommendation of the Project Area Committee. SECTION J. A Statement of Conformance to the General Plan. SECTION K The Environmental Impact Report. SECTION L. Report of the County Fiscal Officer. SECTION M. Neighborhood Impact Report SECTION N. A Summary of the Agency's Consultations with Affected Taxing Entities and a Response to Said Entities' Concems Regarding the Plan. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 II- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL r!f� d�(�• rss ` a r ri s 10 et,�}'.� I ma • J.. ��' ,% \� fin-'' 1, >r�� ��`J q�'rs*;43 • • rhE` .tEE':G' spL^r�,' 5 31' � ,,�• .f � �•'JH � f�.�y r,ll;�tl� T7�'e •e+� � �` `�Sb 4f! 'r��°r' ,'i7f S. r• G-t•- �!�! / ''kNz • �'.t � JK� .�:; w ��a' �,Y�o� J; ,r�r��.��1��yLL,�frk.���i���j� �,�, � I;c r "Xl -V i ] Irv; jrT�1'�"�, • r ,d' .�y t / 4•�.C r j. ttYY"..�. r t a r•. e'is.,7H , , • • r�3. y PfF' � L.7,r p.q•�.�i .i�^ �( �,T� trt~'�w+..,. .1!-r��.�i r"ti! ��. ,..�. r• f }} J! i��`y �� Y v Y. .r c��L� ��` i,�✓�r7�'i'�����'lS rr�.R"�`� iw?�k T `--+�'YY'�±js • .��1. . �Il s�uC 1�-;�h ( ► eO t-r l.i.•':�'i' rTr. ��( Mj.,� j + �'" 1t � • �,��r� 1�:.(fi!''"+'� ti` �j..r�"I�+ �` r�?1'C:z� 2,.a�•'�`A.r,�d�i•_i:'r��7F�`''4'1'� '•.,�?i p:i f.....'r�.,r ri!.t:: • TAL ERTCHANNEL I� ----- �Ly'" Rtf�-�rG p^ a` �,ar!vF!FT i1s4=4ia /��,., �,r�:e^��_a. , �' r-'.�,,'4 sh M=3{;^•�-r��r-rtt`�5.1,r�.� 'u • ,! ;.l4.. s�.� A _r t iic sy P_r{+.r%,� �� i"'t(�!F.(�'�: r `` r1Yr4,��i� �,,Il"y +�'� ■ © 1�'�rt�rC� .[�4�.e�/ �.{�.��` ( �(n(" _Mp ,� ,;t z�� • • �I ,, w' .9..} �PtI'i.ifi�� =lc :+.5-t�• lilt", tv i� T•..L J��f%.1 �:•i:�Ert{. �' Res.No.334 Ex.A Plan Adoption 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. 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 the proposed Plan. 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 April 15,2002 Agency considers transmitting its Report to City Council Redevelopment Agency April 16,2002 City Council/RDA Public Hearing Notices Published/Mailed Staff to Project Area residents, property owners, business owners,and others. April 29,2002 Fourth Community Meeting on Draft Redevelopment Plan, Council Committee EIR and Report to the City Council (Edison Community Center,7:00 PM) May 20,2002 JOINT PUBLIC HEARING—Hear testimony regarding the RDA/Council EIR and Draft Redevelopment Plan June 3,2002 Certify Final Environmental Impact Report Redevelopment Agency 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 Council Dec.2003 First Tax Increment Received ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -IV- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A • a The Reasons for Selection of the Project Area, Including a Description of Proposed Projects and How Such Projects will Improve or Allerviate Bli ht g 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/NESI landfill, and 2) achieving the eventual replacement of the C 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 an 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/NESI landfill site, located at the southwest comer of Magnolia Street and Hamilton Avenue. Between 1938 and 1984, the 38-acre Ascon/NESI 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/NESI 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 burner ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -A-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A units,is inefficient and generates as much as twice the amount of air pollutants as modem 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 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 peaker 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/NESI 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/NESI 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 environmental 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/NESI 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 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 A-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 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 modem, 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, Califomia. 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 Cities 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 southeastem 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/NESI 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 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -A-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A AES facility, smaller industrial uses along Edison Way, the City's beach maintenance facility currently under construction, and open space and flood control uses. No residential uses exist in the Project Area. A Determination as to Whether the Project Area is Predominately, 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: 1) 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. The Project Area encompasses an area of approximately 172 acres. 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. No part of the Project Area is characterized with irregular or inadequately sized parcels, nor in agricultural use. Exhibit A 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 APRIL 8,2002 -A-4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Exhibit A-1-Urbanization Map {i coS_5010 w CPS W UZIN ?.Pin �2 POi kN I Not n Projea Area 'u n Projeu Ar, I Rndnt Lane. N 47.24,59•E CPS r i % { i�=] L- r ' 1 GK SOOG t0 7 f Legend 6 / QUrbanized Area ~: S Non Urbanised Area -�,z % J'rRi°ss a iz%W, — lntersral Part of Urban Area ..�� Project Area Boundary Description e Proposed 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 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL S,2002 -A-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 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. 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. Infiastructure 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 Proiects: 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 Proiects: Continue implementation of median and other streetscape projects along Pacific Coast Highway and other arterials serving ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -A-6- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 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 Facg'Iity 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 ■ 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/NEST landfill Redevelopment: Work with property owners of Ascon/NESI landfill to ensure timely and effective remediation and reuse of the Ascon/NEST 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 Description 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. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -A-7- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A ■ 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/NESI 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 APRIL 8,2002 -A-8- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A • fiiir A Description of the Physical and Economic Conditions EAsting 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: Though permitted by the power emergency, excessively high emissions at the AES generating facility pose health risks to surrounding residents and nearby habitat. 2) Factors Hindering the Economically Viable Use of Lots: Due to the recent energy crisis, AES was unable to proceed with plans to demolish and reconstruct a more efficient power generating facility, and the existing 44 year old plant will remain in operation for at least additional 10 years. In addition, the Ascon/NEST landfill cannot be fully redeveloped by the private sector due to excessive cleanup costs. 3) incompatible uses: The Ascon/NEST landfill and AES power plant have a negative effect on residential resale values in the immediate area. 4) impaired investments: Due to the presence of a dump in the area for 46 years, the former Ascon/NESI landfill is a contaminated Superfund site; two developers have gone bankrupt trying to redevelop the site. 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: ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -B-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A i) 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. 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. a) 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. a) 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. 5) 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. Blighting Conditions in the Project 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, review of public documents filed by State Department of Toxic Substances Control (DTSC), AES and the California Energy Commission, compilation of property sales in the ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 B-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Huntington Beach coastal area from the Metroscan property information system, construction cost estimates from Marshall and Swift valuation service and City Public Works Department. The map below depicts the location of blight in the Project Area. Photographs of the Project Area, including depictions of the specific blighting conditions, are included at the end of this Section. Ir If i ift� V&me a on x Tpas ?Psi Fiat 1Yw� C - � NW ♦ r I t (A t t V N L � t + ' � t y LEGEND ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 B-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 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 obsolete, involving twice as much fuel and toxic emissions than a modem 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 according to Mr.Workman. The improvements to the AES facility are considered by AES and the State Energy Agency 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 filed last summer, State Energy Commission staff in a report dated July 2001, 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 plants 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 of the 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 Caifomia unless they are replaced with modem,more efficient,power plants. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 B4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A There are serious environmental impacts as a result of the higher releases of nitrous oxides (NOx) into the air nearby the Plant. An article in Oil and Gas Journal concluded that NOx emissions can cause respiratory illnesses, lung damage, acid rain (that can damage trees and water resources) and ground-level ozone. In 1999, the AES plant was ranked by Environmental Defense as the highest source of NOx emissions in Orange County. In addition to NOx released from the Plant, other harmful emissions cited by the State Energy Commission's staff report were Volatile Organic Compounds (VOC), carbon monoxide (CO), ozone (03) and particulate matter less than 10 microns in diameter (PM-10). The health impacts associated with these emissions cannot be overstated. According to an article from the South Coast Air Quality Management District (SQAMD), PM-10 emissions are "...of primary concern to health agencies today. Not only does it penetrate deeper into the respiratory system and remain longer than larger particles, but PM-10 also contain large quantities of organic materials that may have significant long-term health effects°. Among the specific health effects cited by SQAMD are PM-10 pollutants that react directly with the respiratory system and retard clearance of other particles in the lungs. With a newer plant, local air quality would be improved by as much as 50%. The plant is adjacent to environmentally sensitive uses that can be affected by their proximity to these emissions, including coastal open spaces, residential neighborhoods, public parks,and a high school. In addition to Units 3 and 4, the unit with the highest levels of emissions is a. peaker unit(Unit 5), that the Energy Commission is requiring that AES retain due to California's energy crisis. The reason for the large impact, according to the State Energy Commission, is due to "...the old turbine technology of the gas turbine engines which results in exceedingly high NOx emissions and the relatively short stack heights of the two exhaust stacks (on Unit 5). The high emissions along with the short stack heights coupled with the steady-state winds can produce a downwash effect, bringing emissions plumes to the ground...(resulting) in high short term impacts." 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. According to the State Energy Commission, operation of Unit 5 itself can cause a violation of the State 1-hour nitrous dioxide ambient air quality standard. Unit 5 NOx emission rates are nearly 300 times greater than emissions from any other turbine at the AES facility. Energy Commission staff also reports that over 99%of the PM-10 impacts come from Unit 5; the PM-10 impacts from the operations of all five units would cause a further exacerbation of violations of the state and federal PM-10 standards. In their April 2001 decision on AES's Application for Certification of the retooling of Units 3 and 4, the Energy Commission reported that other energy developers are currently proposing to replace their vintage coastal boiler-type power plant with new combustion turbine combined cycle units. These modem facilities, such ROSENOW SPEVACEK GROUP.INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -B-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A as Duke Energy's Morro Bay Project and Dynergy's El Segundo Redevelopment Project, use state of the art emission controls, consume about one-third less natural gas, and return less-heated cooling water to the ocean environment. The Energy Commmission also reported that "absent responding to the current electrical emergency, the AES project does not present sufficient justification to perpetuate the vintage Huntington Beach power plant on a coastline of world- renowned scenic, recreational, and environmental value' As a result, the Energy Commission only granted a certification for five years,with an option to extend for an additional five years. Since AES has moved forward with the improvements to Units 3 and 4, at a cost of approximately$150 million,AES states that it is unable to consider any effort to demolish and reconstruct a new facility until after ther 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 transform the facility into an economically viable use by demolishing and replacing 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. For example, 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 cleaner, smaller, and more efficient,while generating the same amount of energy for California consumers. Another possible option for the Agency would be to provide incentives for AES to mitigate emissions beyond State requirements to improve overall air quality for the area. The Agency could also participate in community development projects around the power plant to enhance the area and upgrade adjacent recreational and open space properties. 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. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8.2002 -B-6- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Ascon/NESI Landfill Site The 38-acre Ascon/NESI 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/NESI landfill was an active dump, where the DTSC reports the following items were deposited on site: Dri&V muds Wastewater brines Other drilling wastes Chromic acid Sulfuric acid Aluminum slag Fuel ois Styrene As halt conaete Metal Sal 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/NESI 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 in January 2002, 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 conducted by ENVIRON International Corporation in November 2000, recommended that most of the material be removed from the property, and estimated a remediation cost of approximately $31.5 million. In addition, the owner estimates an additional $3.5 million would be needed for insurance and other items not included in the remediation cost estimate, bringing the total to $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/NESI 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 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -B-7- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A development costs that a project can be expected to bear. RSG's analysis of the Ascon/NESI 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/NESI 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. To analyze the financial feasibility of redeveloping the Ascon/NESI 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 projects 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/NESI 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/NESI 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 APRIL 8,2002 -B-8- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Ascon Landfill Development Pro Forma on I Buildout Scenario Maximum Probable Buildout Buildout Units (502 Units) (371 Units) Acauisition&Site Preparation $ 45,690,800 $ 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 $ 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 $ 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 $ 161,591,324 Sales Revenue $ 193,870,000 $ 149,890,000 Feasibility Gap $ (3,932,979) $ (11,701,324) The blighting conditions present at the AScon/NESI landfill site include the presence of hazardous materials that hinder the economically viable use of the property, and impair the owner's investment. Without the $21 million to $35 million of cleanup costs, redevelopment of the Ascon/NESI landfill site could be financially infeasible. The Ascon/NESI 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. The Feasibility Study Report' indicates trespasser may fall into one of the lagoons(largest one measurement at 300x500 feet) either under the influence of drugs or alcohol or of low visibility during nighttime. The Feasibility Study Report also presented the results of a Baseline Health Risk Assessment that concluded, under current conditions, the Ascon/NESI landfill presents a potential health risk to current off-site residents and workers. Feasibility Study Report Asoon Site, 21641 Magnolia Street, Huntinaton Beach. Cafifomia; ENVIRON International Corporation(November 2000) ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -B-9- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A According to the Feasibility Study Report, "waste pits and lagoons at the site present a continuous source of chemicals that can migrate to on-site and off-site receptors through the air and ground water. According to local real estate professionals and property owners,the physical and economic conditions of both the Ascon/NEST 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/NEST landfill and AES generating facility hinders the economic development of the greater Southeast area, since lower expected returns provide little incentive for new development. Redeveloping the Ascon/NEST 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/NESI 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 APRIL 8,2002 B-10- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Appendix sr a'T.1 ..:t7I.7 r'. ..1 � F;f Z L�l��_f t ��• a z' 1ii •,ll lh7�/.aJiC YlEF4 1 �1. (F4 �� � +t� h �I I 1,� • " rYJQ�,l+ b� a�•��:,`� ,+�. ..yy t.» � r� a 1 yl: r REPORT •THE CITY COUNCIL /.Kvr-�T�`���, �... �.� �4\'`{�,. ♦�v�.•`r��[wJ,�' t y � yrt�. 5�� ��:" �L"'�i�tp,� -t a+J��}��3�''°.+,1� .hi..'�*�.yci q `.. ..\,` sly •.', � r�i!%T: ,�':tF:' ,:t 1'4t"�' `E',��;'�,.1 ! i�ll'w*'t�'�.;. s •+ 1 a� 2 `��� t!` �� \ .�*.�y�tk � � � Ri l •1�? �, ` l. \'��A I 1 � ..E •Ya4 j�t `',;�� r�- A �yt :i b, REPORT •THE CITY COUNCIL Res.No.334 Ex.A r ry Picture 4: The Edison Tanks are visible from the nearby residential neighborhood north of Hamilton Ave. 4 - f 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 foreseeable future. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 B-13- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A M f SO Col _ 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. - 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. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -B-14- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A V4 Five-Year Implementation Plan This Section presents the Five-Year Implementation Plan ("Implementation Plan") for the Southeast Coastal Redevelopment Project ("Project'). If the Redevelopment Plan is adopted by the City Council, then this Implementation Plan will guide the Agency as it implements specific redevelopment projects in the Project Area. If adopted, this Implementation Plan will be in place for the next five years (fiscal years 2002-03 through 2006-07). Midway after its adoption, the Agency must seek community input, and review and update this Implementation Plan. This Implementation Plan is prepared pursuant to Sections 33352 and 33490 of the Redevelopment Law. Since 1994, every redevelopment agency is required to prepare an implementation plan that outlines the projects and expenditures the agency will undertake to address blight in a redevelopment project area. Implementation plans are initially formulated and subsequently updated through a legally mandated process that incorporates extensive public input. The purpose is to inject more public input .into the programs a redevelopment agency implements to address blight in a redevelopment project area. Pursuant to Sections 33352(c) and 33490 of the Redevelopment Law, this Implementation Plan presents the following: • The major goals and objectives of the Agency for the Project Area. • The programs, projects, and estimated expenditures planned for the next five years. • An explanation of how the programs, projects and expenditures will achieve the goals of the Agency and eliminate blight in the Project Area. • An explanation of how the programs, projects, and expenditures will implement the affordable housing requirements of the Redevelopment Law and will increase, improve, and preserve the supply of housing affordable to very low, low, and moderate income households. ObjectivesPlan Goals and Section 400 of the Plan delineates the Agency's redevelopment goals and objectives for the Project Area. These goals and objectives, which are listed below, were employed to formulate the overall strategy for this Implementation ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Plan and will serve as a guide for the Agency's activities during the next five years. • 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; • 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 modem, 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. Blighting Conditions The Project Area was established to address conditions of physical and economic blight. Sections 33030 and 33031 of the Redevelopment Law define physical and economic blight as: ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Physical blight includes the following: • Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations,dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. • Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. • Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. • 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: • Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of Agency authority. • 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. • A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. • 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. • A high crime rate that constitutes a serious threat to the public safety and welfare. The Law also provides that deficient public improvements may be identified as a blighting condition under circumstances including the presence of physical and economic blight. The Agency's goals and objectives and the programs and projects presented in this Implementation Plan are designed to alleviate and/or eliminate blight in the Project Area, as described in Section B of the Agency's Report to the City Council on the Redevelopment Plan. In general, they include the following: ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A i) Unsafe/Unhealthy Buildings; 2) Factors Hindering the Economically Viable Use of Lots; 3) Incompatible Uses; and 4) Impaired Investments. Financial Resources The following presents a projection of revenues the Agency may have available over the next five years to fund the Implementation Plan activities. The projections are based on the financial analysis included in Section E of the Agency's Report to the City Council. The projections are based on the following assumptions: 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 Rates: 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 spec 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 role, 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 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 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 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/Nesi 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 $75.0 million (conservatively 50% of the $150 million construction cost)to the 2002-03 assessment roll. • Ascon/Nesi 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 attached units are anticipated to sell for about $250,000. RSG is assuming that the project would commence construction in the year 2011. Table C-1 presents the annual projected gross tax increment receipts, low and moderate housing set-aside requirement, statutory payments to affected taxing entities, and the remaining net revenues allocated to non-housing projects. Over the first five years of the Plan, if the AES facility remains in the local tax roll then the Agency is anticipated to collect as much as$667,176 in ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A housing fund revenue and $2,001,529 in non-housing fund revenue. Alternatively, if the AES facility stays on the State unitary utility roll, these revenues could be reduced to$626 and$1,877, respectively. However,while not possible to predict, other Project Area properties such as the tank farms may recycle or the proposed $200 million Poseidon Desalination Facility may be reconstructed and generate substantial amounts of additional tax increment revenue during the life of the Project Area. 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 e its Payments Deposits 2002-03 $ - $ - $ - $ - $ - $ - $ - $ 2003-04 792.480 158,496 158,496 475,488 441 88 88 264 2004-05 819,865 163,973 163,973 491,919 666 133 133 400 2005-06 847,662 169.532 169,532 508,597 895 179 179 537 2006-071 875,875 175,175 175,175 5 1,127 5 225 67 3,335,882 667176 667,176 2,001,529 3,128 626 626 1 877 Source: Report to the City Council,Table E-1 Programs During the five-year planning period, the Agency anticipates initiating several planning and implementation activities, contingent upon the availability of tax increment revenues. These activities include the following: 1) pursue local roll reassessment of AES plant, 2) Project Area Design for Development, 3) cleanup of Ascon/Nesi landfill site, 4) public infrastructure and facility program, and 5) affordable housing program. These activities, including the goals to be accomplished, blighting conditions targeted, and estimated expenditures, are described below. 1) Pursue Local Rol ReassessnwM of AES plant In 2001, the State Board of Equalization revised Rule 905 that removed power-generating plants (including the AES plant) from the local assessment roll, and required that their tax revenues from such utilities be apportioned on a countywide basis. This action severely impairs the Agency's potential tax increment revenue flows, particularly during the earliest years of the Project Area. Without the AES plant tax revenues, the Agency would have less than $2,500 available to fund housing and nonhousing projects during the first five- year planning period. To alleviate this problem,Agency and City staff will continue their multifaceted efforts to return tax revenue apportionments to local taxing agencies, including the Agency. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-6- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A a Agency Goals and Objectives to be Achieved Undertaking this program will enable the Agency to adopt a comprehensive design and vision for the redevelopment of the Project Area, thereby advancing the community's efforts towards eliminating blight and achieving the following goals: • To assist with screening, design, or environmental improvements to mitigate impacts on adjoining neighborhoods and environmentally sensitive areas associated with modemization and reconstruction of the AES power generating plant; • 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; and • Replanning, redesigning, and developing properties, which are stagnant or improperly utilized. b. Blighting Conditions Alleviated or Removed by Program This program will begin to address the following conditions of blight identified in the Project Area: • Unhealthy Buildings Factors Hindering Viable Use • Incompatible Uses • Impaired Investments c. Estimated Expenditures: None 2) Project Area Design for Development Residents from the neighborhoods surrounding the Project Area have expressed reservations about the broad range of Project Area land uses permitted by the City's General Plan, particularly the industrial uses currently allowed under the City's Public zoning designation for much of the Project Area. In response to this, the Agency has narrowed the types of uses permitted in the Redevelopment Plan, and proposed the Southeast Coastal Redevelopment Project Area Design for Development as a means to further refine potential land uses and redevelopment activities for the Project Area. The Design for Development in intended to place additional restrictions on land use, in context of community, property owner, planning, and market feasibility interests. During the five-year planning period, the Agency will work with the City Council's Southeast Committee to create a task force of Project Area property ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-7- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A owners, business owners, and nearby residents to formulate the Design for Development policies and have them adopted. Next, the Agency may conduct real estate market, planning and other studies to evaluate the viability and potential level of redevelopment assistance necessary to implement desired uses. a Agency Goals and Objectives to be Achieved Undertaking this program will enable the Agency to adopt a comprehensive design and vision for the redevelopment of the Project Area, thereby advancing the community's efforts towards eliminating blight and achieving the following goals: • To assist with screening, design, or environmental improvements to mitigate impacts on adjoining neighborhoods and environmentally sensitive areas associated with modemization and reconstruction of the AES power generating plant; • To advance the cleanup of environmentally contaminated properties; • To facilitate the potential reuse of other Project Area properties including the Edison and tank farm properties, by monitoring and assisting hazardous material clean-up 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 modem, integrated development with improved pedestrian and vehicular circulation in the Project Area; • Replanning, redesigning, and developing properties, which are stagnant or improperly utilized; and ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-8- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A • Increasing, improving, and preserving the community's supply of housing affordable to very low, low, and moderate income households. b. Blighting Conditions Alleviated or Removed by Program This program will begin to address the following conditions of blight identified in the Project Area: • Unhealthy Buildings • Factors Hindering Viable Use • Incompatible Uses • Impaired Investments c. Estimated Expenditures: Up to$100,000 3) Clean-up of Ascon/Nesi Landfill Site The Agency proposes to continue to monitor and where appropriate and necessary assist with Cal EPA's ongoing effort to implement a remediation plan for the closed Ascon/Nesi Landfill property at Hamilton and Magnolia Avenues. a. Agency Goals and Objectives to be Achieved Undertaking this program will enable the Agency to adopt a comprehensive design and vision for the redevelopment of the Project Area, thereby advancing the community's efforts towards eliminating blight and achieving the goals of the Agency. Completion of this program will achieve the following Agency goals and objectives: • To advance the cleanup of environmentally contaminated properties; • To facilitate the potential reuse of other Project Area properties including the Edison and tank farm properties, by monitoring and assisting hazardous material dean-up 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 restrict the use of eminent domain to any non-fee ownership interests such as oil and gas leases; and • Eliminating blight and environmental deficiencies in the Project Area. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-9- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A b. Blighting Conditions Alleviated or Removed by Program • Factors Hindering Viable Use • Incompatible Uses • Impaired Investments c. Estimated Expenditures: None at this time. 4) Pubic Infrastructure and Facility Program Provided that the Project Area has the resources available, the Agency may assist construction of public improvements in and around the Project Area. These projects may include assisting development of proposed Orange Coast River Park in and adjacent to Project Area. a Agency Goals and Objectives to be Achieved This program will enable the Agency to construct public improvements that address substandard and inadequate public infrastructure in the Project Area. As one of the major focuses of the Agency in the Redevelopment Plan, improvements to Project Area infrastructure will achieve certain goals and alleviate blighting conditions in the Project Area. Completion of this program will achieve the following Agency goals and objectives: • 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; and • 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. b. Blighting Conditions Alleviated or Removed by Program Completion of this program will address the following conditions of blight identified in the Project Area: • Factors Hindering Viable Use • Impaired Investments • Inadequate Public Improvements ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-10- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A c. Estimated Expenditures: Up to$500,000 5) Affordable Housing Program During the first five years of the Plan, the Agency proposes to invest Project Housing Funds into existing citywide housing programs. Prior to adopting the Redevelopment Plan, the City Council and Agency will consider resolutions finding that such housing funds may be used outside the Project Area. Among the potential housing programs that may be funded include the following: • New construction of affordable dwelling units • Acquisition and rehabilitation of existing units a. Agency Goals and Objectives to be Achieved Affordable housing is an important component of the Agency's implementation strategy during the first five years of the Plan. By investing Project resources into existing Agency and City affordable housing endeavors,the Agency will be able to more efficiently achieve the goals and objectives: • Increasing, improving, and preserving the community's supply of housing affordable to very low, low, and moderate income households. b. Blighting Conditions Alleviated or Removed by Program Since funds are anticipated to be used primarily outside the Project Area, this program will not be eliminating blighting conditions. c. Estimated Expenditures: Up to$667,000 Affordable Housing Compliance Plan The provisions of Section 33413(b)(4) of the Redevelopment Law require the Agency to adopt and periodically update a plan to ensure compliance with the existing criteria of Section 33413 of the Redevelopment Law regarding the affordability mix of new or rehabilitated housing units ("Housing Compliance Plan"). This Housing Compliance Plan must be consistent with the jurisdiction's housing element and must also be reviewed and, if necessary, amended at least every five (5) years with either the housing element cycle or the implementation plan cycle. The following narrative addresses provisions of Section 33490(a)(2) (A) and (B) of the Redevelopment Law. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-11- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 1. The amount of tax increment revenue that will be deposited in the Low and Moderate Income Housing Fund during each of the next five years. Table C-1 indicates the annual projected housing fund revenues over the next five years. The projected deposits to the Housing Fund during the next five years could total approximately$667,000. 2. Estimates of the number of new, rehabilitated, or price-restricted units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years. As there are no existing housing units within the Project Area and the only residentially zoned land is located on the Ascon/Nesi site, it is highly unlikely that any housing units will be produced within the project area during the next five years. Thus, the Agency anticipates expending all of the Housing Fund monies during the coming five years on programs that either result in construction or rehabilitation of affordable housing units outside the Project Area throughout the City. Table C-1 presents a forecast of the annual deposits to the Housing Fund from 2002-03 through 2006-07. During the first five years of the Plan, the Agency estimates that approximately $667,000 cumulatively will be expended on these programs. 3. An estimate of the number of new, substantially rehabilitated or price- restricted residential units to be developed or purchased within the Project Area, both over the life of the Redevelopment Plan and during the next ten years. As the Agency is not aware of any housing proposals in the Project Area, no units are anticipated to be developed, rehabilitated, or price restricted during the next ten years. Beginning in 2012, the Agency anticipates that as many as 502 new units may be constructed with the remediation and reuse of the Ascon/Nesi Landfill. No other residential units are anticipated for the Project Area. 4. An estimate of the number of units of very low, low- and moderate-income households required to be developed within the Project Area in order to meet the requirements of Section 33413(b)(2) of the Redevelopment Law, both over the life of the Redevelopment Plan and during the next ten years. Assuming 502 units are developed at the Ascon/Nesi site, a minimum of 15% of the units developed would need to be affordable (75 units). Of these affordable units, at least 30 units (40%) would need to be reserved for very low-income households, pursuant to Section 33413(b)(2) of the Redevelopment Law. Although the Agency does not anticipate that these units will be developed within the next ten years, it is possible that these units could be created during the 30-year duration of the Redevelopment Plan. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-12- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 5. The number of units of very low, low-, and moderate-income households which have been developed within the Project Area which meet the requirements of Section 33413(b)(2)of the Redevelopment Law. Because the proposed Plan is in the process of being adopted and the Project Area has not yet officially been created, this requirement does not apply. 6. An estimate of the number of Agency-developed residential units which will be developed during the next five years, if any, which will be govemed by Section 33413(b)(1). As there are no residential units within the Project Area, the Agency does not anticipate developing or rehabilitating any residential units in the Project Area during the next five years. 7. An estimate of the number of units for very low, low-, and moderate-income households in the Project Area which will be developed by the Agency during the next five years to meet the requirements of Section 33413(b)(1) of the Redevelopment Law. The Agency does not anticipate developing any residential units during the next five years. Therefore, the requirements of this section do not apply at this time. The following discussion contains the required components pursuant to Section 33490(a)(3)of the Redevelopment Law. Pursuant to Section 33490(a)(3) of the Redevelopment Law, if the Implementation Plan contains a project that will result in the destruction or removal of dwelling units that will have to be replaced pursuant to Section 33413(a) of the Redevelopment Law, the Implementation Plan shall identify proposed locations suitable for those replacement dwelling units. As there are no residential units within the proposed Project Area, the requirements of this section do not apply to this Implementation Plan. However, in the remote event that this occurs, the Agency will provide replacement dwelling units in compliance with the requirements of Section 33413(a) of the Redevelopment Law. Means to Accomplish Requirements The Agency intends to use revenue in the Low and Moderate Income Housing Fund and any other appropriate funds available to the Agency under the Plan, including, but not limited to, the Department of Housing and Urban Development funds. Where available, low-income housing tax credits and tax exempt financing mechanisms may also be used by the Agency. Policies and programs such as providing affordable housing incentives for developers, permitting manufactured ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-13- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A housing, and inclusionary housing programs will be explored by the Agency. The Agency may also provide rehabilitation loans and grants. Housing Element Compliance The Redevelopment Plan and the Housing Compliance Plan conform to the City General Plan and Housing Element. This Housing Compliance Plan, like the Housing Element in the City's General Plan, focuses on providing suitable housing for City residents including lower income households and has been prepared according to guidelines established in the programs and goals outlined in the Housing Element of the General Plan. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -C-14- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A An Explanation of Why the Elimination of Blight Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives other Than Tax Increment Financing Why Private Enterprise Alone Cannot Eliminate Blight As described in Section B of this Report, the Agency cannot rely on private enterprise acting alone to eliminate blight because the private sector is constrained by numerous factors that inhibit investment. For example, AES's $150 million investment in the retooling of its facility forced it to defer for at least ten years its plans to demolish and rebuild a newer, cleaner facility at the same location. At the Ascon/NESI landfill, the failed efforts of two prior developers that led to bankruptcies indicate the difficulty for the private sector to redevelop that property. Due to excessive cleanup costs reaching $35 million, the private sector cannot feasibly redevelop the Ascon/NESI landfill. The inability of both owners to redevelop their properties results in environmental, health and economic impacts felt not only in the Project Area but throughout the surrounding neighborhoods, as property values in the surrounding area are depreciated due to the stigma of being located next to these properties. Participation by the Agency can enable these property owners to bridge the financial gap to be able to mitigate blight in the Project Area. For example, the Agency could work with the owners of the Ascon/NESI landfill to recover funds from responsible parties, provide funds for infrastructure and other improvements, or provide other financial assistance to make development of the site financially viable. Similarly, Agency participation with AES could expedite redevelopment of the obsolete and harmful generating facility, strive for enhanced air quality controls, and improve surrounding properties to mitigate the plant's aesthetic impacts on the overall Southeast area. Similar partnerships are underway in other parts of the state as local govemments are seeking a means to accommodate the State's power demands. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -D-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Reasons •r the Provisions of Without tax increment revenue, the Agency would be forced to rely on the City's General Fund to underwrite redevelopment implementation costs over the next 45 years. Because the City collects approximately 16% of the property taxes (as compared to 65% - 69% that would be retained by the Agency), a far smaller amount of tax increment revenue would be generated for redevelopment implementation. By providing tax increment revenue, the Plan entitles the Agency to a much larger share of the future property taxes than what the City would receive without this authority. Tax increment financing will be an essential part of the Agency's redevelopment program in the Project Area. For years, the Ascon/NESI landfill has languished and two property owners have gone bankrupt in prior efforts to clean up and 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/NEST landfill. If property taxes from the AES facility are apportioned locally (instead to all agencies countywide), tax increment financing may also be useful in underwriting some of the costs of replacing the existing facility with a newer, 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 APRIL 8,2002 -D-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A • Method of Financing and Economic Feasibility of the Plan 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; 4) Proceeds from lease or sale of Agency-owned property; 5) 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 ftm the City,County,State,and/or the Federal Govemment 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 APRIL 8,2002 -E-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.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 year2021-22) 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 APRIL 8,2002 -E-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.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 E-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 hates: 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 APRIL 8,2002 -E-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.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 44% (or$66.9 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/NEST 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$75 million to the 2002-03 assessment roll. ■ Ascon/NEST 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 attached 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 APRIL 8,2002 -E-4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Projected Tax Increment Revenues ORNMEx.A 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 Deposits Payments Deposits 2001-02 Base Year Value: 103.943.351 2001-02 Base Year Value: 1,501.414 2002-03 - - - - - - - - 2003-04 792,480 158,496 158,496 475,488 441 88 88 264 2004-05 819,865 163,973 163,973 491,919 666 133 133 400 2005-06 847,662 169,532 169,532 508,597 895 179 179 537 2006-07 875,875 175,175 175,175 525,525 1,127 225 225 676 2007-08 904,512 180,902 180,902 542,707 1,362 272 272 817 2008-09 933,578 186,716 186,716 560,147 1,601 320 320 961 2009-10 963,080 192,616 192,616 577,848 1,844 369 369 1,107 2010-11 993,025 198,605 198,605 595,815 2,091 418 418 1,254 2011-12 1,023,419 204,684 204,684 614,051 2,341 468 468 1,404 2012-13 1,433,498 286,700 286,700 860,099 381,824 76,365 76,365 229,094 2013-14 1,857,313 442,663 371,463 1,043,187 774,583 220,900 154,917 398,766 2014-15 2,295,221 603,814 459,044 1,232,363 1,180,971 370,451 236,194 574,326 2015-16 2,747,589 770,285 549,518 1,427,786 1,601,345 525,149 320,269 755,927 2016-17 3,214,791 942,215 642,958 1,629,617 2,036,074 685,129 407,215 943,730 2017-18 3,278,511 965,665 655,702 1,657,145 2,066,834 696,448 413,367 957,018 2018-19 3,343,188 989,465 668,638 1,685,085 2,098,055 707,938 419,611 970,506 2019-20 3,408,834 1,013,623 681,767 1,713,444 2,129,744 719,600 425,949 984,196 2020-21 3,475,465 1,038,143 695,093 1,742,229 2,161,909 731,436 432,382 998,091 2021-22 3,543,096 1,063,032 708,619 1,771,445 2,194,556 743,450 438,911 1,012,195 2022-23 3,611,741 1,088,293 722,348 1,801,100 2,227,693 755,645 445,539 1,026,510 2023-24 3,681,415 1,113,933 736,283 1,831,199 2,261,328 768,022 452,266 1,041,040 2024-25 3,752,135 1,139,958 750,427 1,861,750 2,295,466 780,585 459,093 1,055,788 2025-26 3,823,916 1,166,373 764,783 1,892,759 2,330,117 793,337 466,023 1,070,757 2026-27 3,896,773 1,193,185 779,355 1,924,233 2,365,287 806,279 473,057 1,085,950 2027-28 3,970,723 1,220,398 794,145 1,956,180 2,400,985 819,416 480,197 1,101,372 2028-29 4,045,782 1,248,020 809,156 1,988,606 2,437,219 832,750 487,444 1,117,025 2029-30 4,121,968 1,276,056 824,394 2,021,518 2,473,996 846,284 494,799 1,132,913 2030-31 4,199,296 1,304,513 839,859 2,054,923 2,511,324 860,021 502,265 1,149,038 2031-32 4,277,784 1,333,397 855,557 2,088,830 2,549,213 873,964 509,843 1,165,406 2032-33 4,357,449 1,362,714 871,490 2,123,246 2,587,670 888,116 517,534 1,182,020 2033-34 4,438,309 1,401,526 887,662 2,149,121 2,626,704 906,852 525,341 1,194,510 2034-35 4,520,382 1,440,922 904,076 2,175,384 2,666,323 925,870 .533,265 1,207,189 2035-36 4,603,687 1,480,908 920,737 2,202,042 2,706,536 945,172 541,307 1,220,057 2036-37 4,688,240 1,521,493 937,648 2,229,099 2,747,353 964,764 549,471 1,233,118 2037-38 4,774,063 1,562,688 954,813 2,256,562 2,788,782 984,650 557,756 1,246,376 2038-39 4,861,172 1,604,501 972,234 2,284,437 2,830,832 1,004,834 566,166 1,259,832 2039-40 4,949,588 1,646,940 989,918 2,312,730 2,873,514 1,025,321 574,703 1,273,490 2040-41 5,039,330 1,690,017 1,007,866 2,341,448 2,916,835 1,046,115 583,367 1,287,353 2041-42 5,130,419 1,733,739 1,026,084 2,370,596 2,960,806 1,067.222 592,161 1,301,423 2042-43 5,222,874 1,778,117 1,044,575 2,400,182 3,005,437 1,088,644 601,087 1,315,705 2043-44 5,316,715 1,823,161 1,063,343 2,430,211 3,050,737 1,110,389 610,147 1,330,201 2044-45 5,411,965 1,868,881 1.082,393 2,460,691 3,096,717 1,132,459 619,343 1,344,915 2045-46 5,508,643 1,915,287 1,101,729 2,491,628 3,143,386 1,154,860 628,677 1,359,849 2046-47 1 5,606,771 1,962,388 1,121,354 2,523,029 3,190 756 1 177,597 638,151 1,375M7 Total 150,562,140 46,623,714 30,112,428 73,825,998 1 83,683,278 29,038,509 16,736,656 37,908,114 ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -E-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.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 E-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 City School District 3) Huntington Beach Union High School District 4) Coast Community College District 5) Orange County Municipal Water District s) Metropolitan Water District 7) Orange County Department of Education ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -E-6- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A s) Orange County Sanitation District s) Orange County Water District io)Orange County Cemetery District ii)Orange County Flood Control District 1 2) 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 E-2)of the projected tax increment revenues over the next 45 years. Table E-2 shows gross tax increment revenues, projected taxing agency payments, housing set aside deposits, and gross nonhousing revenues. In addition, Table E-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 APRIL 8,2002 -E-7- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Summary of Projected Tax Increment Revenues or RTWM 45 Year Projections Scenario With Without Difference AES Facility AES Facility Gross Tax Increment $150,562,140 100% $ 83,683,278 100% $ 66,878,861 Taxing Agency Payments 46,623,714 31% 29,038,509 35% 17,585,205 Housing Deposits 30,112,428 20% 16,736,656 20% 13,375,772 Nonhousing Revenue 73,825,998 49% 37,908,114 45% 35,917,884 Administration A 8,859,120 6% 4,548,974 5% 4,310,146 Financing Costs /2 41,342,559 27% 21,228,544 25% 20,114,015 Net Nonhousing Revenue $ 23,624,319 16% $ 12,130,596 14% $ 11,493,723 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. In addition, if the $200 million Poseidon facility is constructed and other properties recycle, the amount of tax increment revenue could exceed these projections. 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. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -E-8- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A The Method of Relocation In conjunction with the adoption of the Plan, the Agency prepared and circulated Relocation Guidelines, consisting of the State Relocation Law(Government Code 7260 through 7277), and the California Relocation Assistance and Real Property Acquisition Guidelines as established in the California Code of Regulation, Title 25, Chapter 6 ("State Guidelines"). The Agency does not anticipate that implementation of the Project will result in the relocation of businesses, residents, or local community institutions. If relocation is necessary, the Relocation Guidelines ensure that the Agency will meet its relocation responsibilities to any families, persons, businesses or nonprofit local community institutions to be temporarily or permanently displaced as a consequence of the Plan's implementation. No persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacements. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -F-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A 'M • An Analysis of the Preliminary Plan The revised Preliminary Plan for the Project("Preliminary Plan")was approved by the City of Huntington Beach Planning Commission ("Planning Commission") on June 12, 2001. The Preliminary Plan described the boundaries of the Project Area and included general statements of the proposed land uses, layout of principal streets, population densities, building intensities, and building standards. It also addressed how the Plan would attain the purposes of the Redevelopment Law. It discussed the conformance with the General Plan and discussed the impact of the Project upon residents and the surrounding neighborhood. The Plan conforms with the standards and provisions of the Preliminary Plan, as detailed below. • Project Area Location and Description: This section of the Preliminary Plan describes the boundaries of the Project Area. The proposed boundaries are identical to those described in the Preliminary Plan. • General Statement of Proposed Planning Elements: This section of the Preliminary Plan states that Project Area land uses, proposed layouts of principal streets, proposed population densities, proposed building intensities, and proposed building standards shall be subject to and controlled by the General Plan, Zoning Ordinance, and other local codes, as amended from time to time. These planning elements have been incorporated into the Plan. Additionally, the Plan does not propose any changes to population or development densities or land use designations. • Attainment of the Purposes of the Redevelopment Law. This section of the Preliminary Plan generally sets forth the objectives of the Project Area. To this end, the Plan contains a detailed list of redevelopment goals that permit the Agency to complete its redevelopment program to eliminate persisting blighting conditions in the Project Area in accordance with the Redevelopment Law. • Conformance to the General Plan: Both the Preliminary Plan and Plan conform to the standards, policies and provisions of the General Plan, as they exist or are hereafter amended. • General Impact of the Proposed Project Upon the Residents of the Project Area and Surrounding Neighborhoods: This section of the Preliminary Plan ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -G-1 - SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A states that residents in and around the Project Area will benefit from improved traffic circulation, public facilities and services, environmental quality, employment opportunity and economic development activity effectuated by implementation of the Plan. Other impacts associated with the implementation of the Plan have been assessed and analyzed in .the Environmental Impact Report on the Plan, included in Section K of this Report, and the Neighborhood Impact Report, incorporated in Section M of this Report. The Plan provides the Agency with the redevelopment tools,and policies necessary to achieve positive impacts and mitigate negative impacts. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 G-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A The Report and Recommendations of the Planning Commission On April 9, 2002, the Planning Commission adopted Resolution No. 1570 as its report and recommendation on the draft Plan. A copy of the Planning Commission's Resolution follows this page. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -H-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A RESOLUTION NO. 1570 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HUNTINGTON BEACH MAKING ITS REPORT AND RECOMMENDATION ON THE PROPOSED SOUTHEAST COASTAL REDEVELOPMENT PLAN WHEREAS, the Redevelopment Agency of the City of Huntington Beach ("Agency") and the City Council of the City of Huntington Beach ("City Council") are preparing and considering the adoption of a Redevelopment Plan for the Southeast Coastal Redevelopment Project ("Plan"); and The Planning Commission did adopt Resolution 1563 on June 12, 2001, approving a revised Preliminary Plan for the Southeast Coastal Redevelopment Project; and Section 33346 of the California Community Redevelopment Law ("Law") provides that before the proposed Plan is submitted to the City Council for consideration, it shall be first submitted to the Planning Commission for its report and recommendation concerning the Plan and its conformity to the City's General Plan; and Section 65402 of the Government Code provides in part: (a) "If a general plan or part thereof has been adopted,no real property shall be acquired by dedication or otherwise for street, square, park, or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building shall be constructed or authorized, if the adopted general plan or part thereof applies thereto,until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or structure have been submitted to and reported upon by the planning agency as to conformity with said adopted general plan or part thereof... (b) A local agency shall not acquire real property for any of the purposes specified in paragraph (a) nor dispose of any real property, nor construct or authorize a public building or structure, in any county or city, if such county or city has adopted a general plan or part thereof is applicable thereto, until the location, purpose and extent of such acquisition, disposition, or such public building or structure have been submitted to and reported upon by the planning agency having jurisdiction, as to conformity with said adopted general plan or part thereof..."; and The Planning Commission has received and reviewed the Plan in the form attached hereto as Exhibit"A"; and The proposed boundaries of the Project Area ("Project Area") incorporate territories within the jurisdiction of the City of Huntington Beach General Plan; and 1 Res.No.334 Ex.A The Plan proposes land use controls, permitted uses, public uses, interim uses, and general land use controls and limitations, in a manner consistent with applicable City General Plan policies as follows: 1. Section 518 of the Plan provides that public improvements to be undertaken by the Agency are identified in the General Plan and capital improvement programs, and incorporates said documents by reference; and, 2. Section 527 of the Plan provides that 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, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and, 3. Section 528 of the Plan provides that all real property sold, leased or conveyed by the Agency, as well as property subject to Owner Participation Agreements between the Agency and property owners, shall be made subject to the provisions of the General Plan, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and, 4. Section 601 of the Plan provides that the land uses permitted by this Plan shall be those permitted by the General Plan, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and, 5. Section 604 of the Plan provides that the street system in the Project Area shall be developed in accordance with the General Plan, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and, 6. Section 606 of the Plan provides that any interim uses shall conform to the General Plan, zoning ordinance, and all other state and local building codes, guidelines or specific plans as they now exist or are hereafter amended; and, 7. Section 607 of the Plan provides that no real property shall be 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, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and, 8. Section 608 of the Plan also provides that the type, size, height, number, and use of buildings in the Project Area will be controlled by the General Plan, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and, 9. Section 611 of the Plan provides that the number of dwelling units in the Project Area shall be regulated by the General Plan;and, 10. Section 612 of the Plan provides that the amount of open space in the Project Area is to be the areas so designated by the General Plan, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. 2 Res.No.334 Ex.A NOW, THEREFORE,the Planning Commission of the City of Huntington Beach hereby reports, finds, and determines that the Redevelopment Plan for the Southeast Coastal Redevelopment Project conforms to the City of Huntington Beach General Plan. The Planning Commission hereby recommends that the City Council and Agency adopt the Redevelopment Plan for the Southeast Coastal Redevelopment Project. The Planning Commission hereby finds and determines, pursuant to Section 65402 of the Government Code, that the location, purpose, and extent of any acquisition or disposition of real property for street, square, park, or other public purpose by the Agency for the purpose of carrying out the Redevelopment Plan conforms to the General Plan of the City. The Planning Commission hereby authorizes and directs the officers, employees, stag consultants, and attorneys for the Planning Commission to take any and all actions that may be necessary to effectuate the purposes of this resolution or which are appropriate or desirable in the circumstances. In the event that prior to the adoption of the Plan, the Agency or City Council desire to make any minor, technical, or clarifying changes to the Plan, the Planning Commission hereby fords and determines that any such minor, technical, or clarifying changes need not be referred to it for further report and recommendation. This Resolution shall constitute the report and recommendation of the Planning Commission on the Redevelopment Plan to the Agency and City Council pursuant to Section 33346 of the Law. PASSED AND ADOPTED by the Planning Commission of the City of Huntington Beach at a regular meeting thereof on the M day of April, 2002. AYES: Mandic, Kerins, Hardy, Shomaker, Livengood, Kokal, Porter NOES: None ABSENT: None AB TAIN: None A ST: A�Imrd Zele sky, Secretary Pl. 'ng Commission Chairperson 3 Res.No.334 Ex.A • Report and Recommendation of the Project Area Committee The Project Area does not include any housing units currently, and the Plan does not propose projects that could eliminate any affordable residential units in the Project Area. Therefore, no project area committee was formed. As a result, there is no report or recommendation from the project area committee. However, the Agency engaged the community in a substantial public participation effort over the past 18 months, including three meetings with the City Council Southeast Committee, town hall meetings in the Southeast area, meetings with the Southeast Huntington Beach Neighborhood Association, face-to-face meetings between staff and interested residents and property owners. On April 29, 2002, the fourth Southeast Subcommittee community workshop is planned. The purpose of the workshop is to present the proposed Plan and discuss issues. Notice of the workshop and joint public hearing (scheduled for May 20, 2002) will be mailed to all Project Area property owners, business owners,affected taxing agencies,and nearby residents within a 500-foot radius of the Project Area. Agency staff has posted several documents relating to the proposed Plan on the City's website (www.hbbiz.com/searea.htm). Finally, all meetings associated with the Plan adoption effort thus far, including several Planning Commission, Agency, and City Council meetings, have been open and available to the public, and records of all such meetings have been maintained by Agency staff. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -1-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A A Statement of Conformance to the General Plan On April 9, 2002, the Planning Commission adopted Resolution No. 1570 determining that the draft Plan and implementation activities described therein are in conformity with the General Plan of the City, pursuant to Government Code Section 65402. A copy of the Planning Commission resolution is included in Section H of this Report. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -J-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Rik The Environmental Impact Report A program environmental impact report("EIR") for the Plan (State Clearinghouse No. 2001-091144) was prepared by RBF Consulting. The EIR reviewed all potential environmental impacts associated with the implementation of the Plan. Topics addressed in the EIR included: Land Use/Relevant Planning; Transportation/Circulation; Aesthetics/Light and Glare; Biological Resources; Geology, Soils and Seismicity; Noise; Air Quality; Human Health/Risk of Upset; Public Services and Utilities; and Cultural Resources. Additionally, the EIR addressed all other sections as required by the Califomia Environmental Quality Act(CEQA). A copy of the EIR is included under separate cover and incorporated herein by reference. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8.2002 K-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Report of the County Fiscal Officer On October 30,2001, the County Auditor-Controller provided the Agency a report prepared in accordance with Section 33328 of the Redevelopment Law, using the 2001-02 equalized roll as the "base year° assessment roll for the purposes of calculating tax increment. In addition, on August 28, 2001, the State Board of Equalization submitted a similar report for state-assessed nonunitary assessed values in the Project Area. Together, the County and State Board of Equalization report that the total Project Area secured, unsecured, and state-assessed value in 2001-02 is$103,943,351. Copies of the base year reports prepared by the County Auditor-Controller and State Board of Equalization follow this page. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -L-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL DAVID E. SUNDSTROM, CRA.No.334 • AUDITOR -CONTROLLER Ex.A Hall Of Finance&Records 12 Civic Center Plaza P.O. Box 567 Santa Ana, California 92702-0567 (714) 834-2450 FAX: (714) 834-2569 AUDITOR-CONTROLLER October 30, 2001 RECEIVED NOV 01 2001 Huntington Beach Redevelopment Agency 2000 Main Avenue CITY OF HUNTINGTON BEACH Huntington Beach, CA 92648 ADMINISTRATIVE OFFICE Attention: Ray Silver, Executive Director Subject: Fiscal Impact Report for the City of Huntington Beach Proposed Huntington Beach Southeast Coastal Redevelopment Project Pursuant to Section 33328 et seq. of the California Health and Safety Code, please find enclosed your copy of the Fiscal Impact Report for the proposed redevelopment project. Further inquiries may be directed to: County of Orange Auditor-Controller's Office Attn: Tax Unit 12 Civic Center Plaza P.O. Box 567 Santa Ana, CA 92702-0567 Lindsey rede Accou ant-Auditor II /lb Enclosure RECEIVED NOV 0 2 2001 DEPARTMENT OF ECONOMIC DEVELOPMENT D:\My Documents\Typing\Fiscal Impact—Huntington Beach Southeast RDA Res.No.334 Ex.A The attached letter and enclosure were also sent to the following: Bill Mahoney, CEO Robert Austin, County Counsel Bob Wilson, PFRD Huntington Beach Union School District Coast Community College District Metro Water District Municipal Water District- Orange County Orange County Cemetery District Orange County Department Of Education, Wendy Margarita Orange County Sanitation District#11 Orange County Transit Authority Orange County Vector Control District Orange County Water District Huntington Beach Elementary School District Huntington Beach City Res.No.334 Huntington Beach-Southeast RDA Ex.A Fiscal Impact Report Index Table I-Health&Safety-Code 33328(A) 2001-02 Base Year Assessment Roll Table I I-Health&Safety-Code 33328(B) Report Of Identification Of Taxing Districts Within The Project Table 1 I I-Health&Safety-Code 33328(C) Report Of 2001-02 Base Year Revenue Each District Can Expect From Within The Project Table I V-Health&Safety-Code 33328(D) Report Of Total Ad Valorem Revenue Each District Has Available From Within And Outside The Project Table I V-Health&Safety-Code 33328(D)Supplement Report of Base Year 2001-02 CRA A.V.Percentage Relationship To Total Taxing District's A.V. Table V-Health&Safety-Code 33328(E) Report of Agency's Revenue in First Year Table V I-Health&Safety-Code 33328(F) Report of Assessed Valuation By Block Within The Project SUPPORTING WORKSHEETS: A Tax Rate Values B Basic Levy Factors and Bond Rates by TRA C TRA Basic Levy Tax Amount Calculations D Bond Tax Amount Calculations E Summary of Basic Levy and Bond Tax Amounts F CRA Value Comparison to Total District Value TABLE I -HEALTH &SAFETY-CODE 33328 (A) Res.No.334 Ex.A Huntington Beach -Southeast RDA 2001-02 BASE YEAR ASSESSMENT ROLL Secured Assessed Value-Local Roll 103,323,568.00 State Board of Equalization -Public Utility Roll 0 Unsecured Assessed Value- Local Roll 619,783.00 Total Assessed Value within the Project 103,943,351.00 TABLE II-HEALTH &SAFETY-CODE 33328 (B) Huntington Beach -Southeast RDA REPORT OF IDENTIFICATION OF TAXING DISTRICTS WITHIN THE PROJECT uistnct Number Agency Name 054A HUNTINGTON BEACH CITY 312A HUNTINGTON BEACH SCHOOL DIST 310A HUNTINGTON BEACH UNION HIGH DIST 300E COAST COMMUNITY COLLEGE 863B MUNI WATER DIST ORANGE CO 820P METROPOLITAN WATER DIST 600A OC DEPT OF EDUCATION 916J OC SANITATION DIST#11 960A OC WATER DIST 961A OC WATER DIST RESERVE 703A OC CEMETERY DIST 710A OC FLOOD CONTROL DIST 708A OC TRANSIT AUTHORITY 744A OC VECTOR CONTROL 713A OC HARBOR BEACHES & PARKS 001C OC GENERAL FUND TABLE III-HEALTH&SAFETY-CODE 33328(C) Res.No.334 Ex.A Huntington Beach-Southeast RDA REPORT OF 2001-02 BASE YEAR REVENUE EACH DISTRICT CAN EXPECT FROM WITHIN THE PROJECT Bonded District Basic Levy Indebtedness Total 2001-02 Number Agency Name Revenue Revenue Revenue 054A HUNTINGTON BEACH CITY $ 161,645.41 $ 305.55 $ 161,950.96 312A HUNTINGTON BEACH SCHOOL DIST $ 231,638.26 $ - 231,638.26 310A HUNTINGTON BEACH UNION HIGH DIST $ 228,182.39 $ - 228,182.39 300E COAST COMMUNITY COLLEGE $ 96,396.70 $ - 96,396.70 863B MUNI WATER DIST ORANGE CO $ - $ - - 820P METROPOLITAN WATER DIST $ - $ 7,994.32 7,994.32 600A OC DEPT OF EDUCATION $ 13,945.62 $ - 13,945.62 916J OC SANITATION DIST#11 $ 25,356.65 $ - 25,356.65 960A OC WATER DIST $ 8,383.07 $ - 8,383.07 961A OC WATER DIST RESERVE $ 111.11 $ - 111.11 703A OC CEMETERY DIST $ - $ - - 710A OC FLOOD CONTROL DIST $ 19,780.43 $ - 19,780.43 708A OC TRANSIT AUTHORITY $ 2,807.12 $ - 2,807.12 744A OC VECTOR CONTROL $ 1,117.19 $ - 1,117.19 713A OC HARBOR BEACHES&PARKS $ 15,289.67 $ - 15,289.67 001C OC GENERAL FUND $ 61,657.49 $ - 61,657.49 ERAF(Educational Revenue Augmentation Fun, $ 171,026.45 $ - 171,026.45 TOTALS1,045,637.42 TABLE IV-HEALTH&SAFETY-CODE 33328(D) Res.No.334 Ex.A Huntington Beach-Southeast RDA REPORT OF TOTAL AD VALOREM REVENUE EACH DISTRICT HAS AVAILABLE FROM WITHIN AND OUTSIDE THE PROJECT The revenue data necessary to complete this section of the Fiscal Impact Report does not currently exist because of the impact of Assembly Bill 8. An inordinate manual effort and expense would be required of the County Auditor-Controller's staff to gather any reliable substitute data. Therefore, the Fiscal Impact Report does not contain the total Ad Valorem Revenue information for the project area. There has been included, however, a supplemental table of comparative assessed values for each taxing district to give a relative indication of Base Year Revenue percentage given up to the Community Redevelopment Agency. See Table IV(D), Supplement. TABLE IV-HEALTH &SAFETY-CODE 33328 (D) SUPPLEMENT CCi 0 Huntington Beach -Southeast RDA Y7 N REPORT OF BASE YEAR 2001-02 CRA A.V. PERCENTAGE RELATIONSHIP TO TOTAL TAXING DISTRICT'S A.V. Taxing District's A.V. Percentage of District Within the Taxing District's A.V.• Project A.V. To Number Agency Name Project County-Wide District A.V. 054A HUNTINGTON BEACH CITY 103,733,755 17,243,141,322 0.6016 312A HUNTINGTON BEACH SCHOOL DIST 103,733,755 8,439,430,851 1.2292 310A HUNTINGTON BEACH UNION HIGH DIST 103,733,755 23,913,546,876 0.4338 3008 COAST COMMUNITY COLLEGE 103,733,755 58,152,976,514 0.1784 863B MUNI WATER DIST ORANGE CO 103,733,755 162,458,656,995 0.0639 820P METROPOLITAN WATER DIST 103,733,755 244,142,573,331 0.0425 600A OC DEPT OF EDUCATION 103,733,755 244,518,909,885 0.0424 916J OC SANITATION DIST#11 103,733,755 11,477,876,181 0.9038 960A OC WATER DIST 103,733,755 142,137,769,368 0.0730 961A OC WATER DIST RESERVE 103,733,755 142,022,518,758 0.0730 703A OC CEMETERY DIST 103,733,755 244,518,909,885 0.0424 710A OC FLOOD CONTROL DIST 103,733,755 244,183,948,214 0.0425 708A OC TRANSIT AUTHORITY 103,733,755 244,518,909,885 0.0424 744A OC VECTOR CONTROL 103,733,755 244,485,738,164 0.0424 713A OC HARBOR BEACHES & PARKS 103,733,755 244,518,909,885 0.0424 001C OC GENERAL FUND 103,733,755 244,518,909,885 0.0424 ERAF (Educational Revenue Augmentation Fund) 103,733,755 244,518,909,885 0.0424 One Percent= 1.0000 TABLE V-HEALTH & SAFETY-CODE 33328 (E) Res.No.334 Ex.A Huntington Beach -Southeast RDA REPORT OF AGENCY'S REVENUE IN FIRST YEAR The Auditor-Controller has been advised by the Community Redevelopment Agency that approximately $150 million of major improvements will be completed within the Project boundaries during the first year, and therefore,we anticipate the growth in value of the area within the Project boundaries to increase by 2-100 percent. Source: Carol Runzel 2001-02 Base 2002-03 Tax 2002-03 Tax Agency Name Year Total Increment Rev. Increment Rev Revenue Estimate Estimate 2%growth 100% growth 1 HUNTINGTON BEACH CITY $ 162,277.57 $ 3,245.55 162,277.57 2 HUNTINGTON BEACH SCHOOL DIST $ 232,106.29 4,642.13 232,106.29 3 HUNTINGTON BEACH UNION HIGH DIST $ 228,643.44 4,572.87 228,643.44 4 COAST COMMUNITY COLLEGE $ 96,591.47 1,931.83 96,591.47 5 MUNI WATER DIST ORANGE CO $ - - - 6 METROPOLITAN WATER DIST $ 8,010.46 160.21 8,010.46 7 OC DEPT OF EDUCATION $ 13,973.80 279.48 13,973.80 8 OC SANITATION DIST#11 $ 25,407.88 508.16 25,407.88 9 OC WATER DIST $ 8,400.01 168.00 8,400.01 10 OC WATER DIST RESERVE $ 111.34 2.23 111.34 11 OC CEMETERY DIST $ - - - 12 OC FLOOD CONTROL DIST $ 19,820.40 396.41 19,820.40 13 OC TRANSIT AUTHORITY $ 2,812.79 56.26 2,812.79 14 OC VECTOR CONTROL $ 1,119.45 22.39 1,119.45 15 OC HARBOR BEACHES& PARKS $ 15,320.56 306.41 15,320.56 16 OC GENERAL FUND $ 61,782.07 1,235.64 61,782.07 17 0 $ - - - 18 0 $ - - - 19 0 $ - - - 20 0 $ - - - 21 0 $ - - - 22 0 $ - - - 23 0 $ - - - 24 0 $ - - - 25 0 $ - - - 26 0 $ - - - 27 0 $ - - - 28 0 $ - - - 29 ERAF $ 171,372.01 3,427.44 171,372.01 TOTAL $ 1,047,749.52 $ 20,955.01 $ 1,047,749.54 TABLE VI-HEALTH&SAFETY-CODE 33328(F) Res.No.334 Huntington Beach-Southeast RDA Ex.A REPORT OF ASSESSED VALUATION BY BLOCK WITHIN THE PROJECT Health and Safety Code,Section 33328(f)requires if requested by the agency: 'The assessed valuation of the project area,by block,for the proceding five years,except for state assessed property on the board roll." The assessed valuation data necessary to complete this section of the Fiscal Impact Report does not exist because the valuation files maintained by the County do not contain historical assessed values by block. Therefore,this Fiscal Impact Report does not contain the preceding five-year assessed valuation information for the proposed project area. We are, however,providing five-year assessed valuation information for the entire city: TOTAL SECURED UNSECURED TOTAL %,GROWTH City of Huntington Beach FCV 2001-02 16,535,171,899 707,969,423 17,243,141,322 8.2% FCV 2000-01 15,301,793,612 641,031,393 15.942,825,005 8.6% FCV 1999-00 14,066,153,506 608,976,863 14,675,130,369 8.4% FCV 1998-99 12,967,510,182 572,508,629 13,540,018,811 4.4% FCV 1997-98 12,340,329,136 624,469,909. 12,964,799,045 5.4% FCV 1996-97 11,767,662,731 537,418,063 12,305,080,794 -0.4% FCV 1995-96 11,819,788,878 538,559,168 12,358,348,046 0.4% FCV 1994-95 11,714,303,985 599,842,201 12,314,146,186 0.1% FCV 1993-94 11,700,330,132 599,505,142 12,299,835,274 N/A ENTIRE TRA 04-001 TOTAL SECURED UNSECURED TOTAL %GROWTH FCV 2001-02 5,282,147,226 187,390,872 5,469,538,098 10.2% FCV 2000-01 4,821,948,021 141,507,660 4,963,455,681 8.7% FCV 1999-00 4,425,402,582 142,623,582 4.568,026,164 8.5% FCV 1998-99 4,083,750,666 128,162,786 4,211,913,452 6.0% FCV 1997-98 3,789,322,098 182,689,341 3,972,011,439 6.5% FCV 1996-97 3,620,059,720 110,911,242 3,730,970,962 N/A FCV=Full Cash Value PORTION OF TRA 04-001 IN RDA TOTAL SECURED UNSECURED TOTAL %,GROWTH FCV 2001-02 103,323,568 619,783 103,943,351 2.70% FCV 2000-01 101,059,935 114,532 101,174,467 7421.90% FCV 1999-00 1,261,961 83,107 1,345,068 N/A Taxable Assessed Value of the Huntington Beach-Southeast RDA 2001-02 2000-01 %GROWTH Secured Assessed Value-Local 103,323,568 101,059,935 2.2% Public Utility Roll-State Board of Equalization 0' N/A N/A Unsecured Roll 619,783 114,532 441.1% TOTALS 103,943,351 101,174,467 2.7% Re STATE OF CALIFORNIA ' STATE BOARD OF EQUALIZATION JOHAN KLEHS r'nt oistr TAX AREA SERVICES SECTION T r� ; E Hayward oEANANOAI 450 N Street,MIC:59 ti`� P.O.Box 942879 second oistrid stoddon Sacramento,CA 94279-0059 ��#1 — L(IC)-1 CLAUDEPARRISH Th rd District.Tortance Telephone: (916)322-7185 JOHN CHIANG FAX: (916)327-4251 Fowh olsatcL Los Angeles August 28, 2001 KATHLEENCONNELL Corr .Saaamerdo Honorable David E. Sundstrom JAMESESPEED Orange County Auditor �ea"rvs°i"d°r P.O. Box 567 Santa Ana, CA 92702-0567 Dear Mr. Sundstrom: Pursuant to Section 33328 et seq. of the Health and Safety Code, the 2001-2002 assessed values of railroads and the non-operating, non unitary assessed values of state-assessed property located within the boundaries of the proposed Southeast Coastal Redevelopment Project Within the City of Huntington Beach are zero. These values will continue to be valid if the project boundaries remain fixed. The ordinance adopting and approving the redevelopment plan for this project becomes effective prior to August 20, 2002. If you have any questions regarding this matter, please contact me at (916) 322-7185. Sincerely, David J. Martin, Supervisor Tax Area Services Section DJM:ah cc: Mr. Brian Haworth Mr. Ray Silver RECEIVED SEP 0 6 200, Values/1/99 DEPARTMENT OF /lper-- Res.No.334 Ex.A I Neighborhood Impact Report Redevelopment Law requires that a Neighborhood Impact Report discuss the impact the Plan will have on low and moderate income persons or families in the following areas: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. Additional issues that the neighborhood impact report must address include: the number of low or moderate-income dwelling units to be removed or destroyed; the number of low or moderate income persons or families expected to be displaced; the general location of housing to be rehabilitated, developed or constructed;the number of dwelling units planned for construction or rehabilitation to house persons and families of low or moderate income (other than replacement housing); the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting the Plan's relocation, rehabilitation, and replacement housing objectives. Implementation of the Project will have a beneficial impact on the Project Area and adjoining neighborhoods. Although the concept to explore redevelopment as a way to clean-up the area was made by the City's Administration, after the formation of the Southeast Area Committee and discussions with the community, the Project Area property owners and nearby residents offered the initial interest to move forward through the redevelopment plan adoption process. The community is interested in judiciously using all available community development programs to enhance the character and quality of the City. Relocation At this time, the Agency does not have any plans to relocate residents or businesses in the Project Area. If relocation activities are undertaken, the Agency will handle those activities on a case-by-case basis, in .accordance with its method of relocation, as contained in Section F of this Report. As a public agency formed under the provisions of state law, the Agency is required to adhere to the State Relocation Law (Government Code Sections 7260 through 7277) and follow the California Relocation Assistance and Real Property Acquisition Guidelines ("State Guidelines") as established in the California Code of Regulations,Title 25, Chapter 6. Prior to commencement of any acquisition activity that may cause substantial displacement of residents, the Agency will adopt a specific relocation plan in ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -M-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A conformance with the State Guidelines. To the extent appropriate, the Agency may supplement those provisions provided in the State Guidelines to meet particular relocation needs of a specific project. Such supplemental policies, if adopted in the Agency's sole discretion, will not involve reduction, but instead enhancement of the relocation benefits required by State Law. Traffic Circulation Transportation and circulation impacts resulting from the adoption and implementation of the Plan are discussed in Section 4.2 of the EIR. The Plan does not provide for the direct development of any private or public development projects that would generate traffic and impact existing levels of service of any roadways in the Project Area. However, the development of projects would indirectly generate traffic both during and after project construction, impacting existing levels of service on road segments and intersections that serve the Project both within and outside its boundaries. The City's General Plan will control the land use designations and intensities of the Plan; its implementation will not create locally or cumulatively significant impacts beyond what is anticipated under the General Plan. It will also not alter or intensify the General Plan's land uses, traffic generation, levels of service, or intersection capacities. As a result, no traffic or circulation impacts were forecast in the EIR that were not considered by the General Plan EIR. The Agency, via the Plan, will adhere to policies in the circulation element of the General Plan in lessening traffic and circulation impacts. The Plan permits the Agency to construct improvements to improve traffic circulation. In the absence of the Plan, such improvements may be delayed indefinitely because of the City's lack of financial resources in funding the improvements. Several projects related to circulation and traffic improvements are listed in the Plan and are enumerated in Section A of this Report. These improvements include, but are not limited to modifications to roadway widths, construction of curbs, gutters, street lights, and sidewalks, and installation and improvements to water lines. These projects proposed by the Agency will improve circulation, mitigate traffic deficiencies, and provide general benefits to the Project Area consistent with the circulation element of the General Plan. Environmental Quality The EIR reviewed the impacts of the Plan, including the potential new development and public improvements that could be facilitated by the Agency. The EIR is incorporated herein by reference. The EIR analyzed the following ten areas: • Land Use/Relevant Planning; • Transportation/Circulation; ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -M-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A • Aesthetics/Light and Glare; • Biological Resources; • Geology, Soils and Seismicity; • Noise; • Air Quality; • Human Health/Risk of Upset; • Public Services and Utilities; and • Cultural Resources Because the Plan does not propose uses or intensities beyond the General Plan, adherence to adopted General Plan policies will ensure that implementation of the Plan will lessen or avoid potential impacts. Where applicable, the EIR outlines mitigation measures which will be required of future development. This will assure that the quality of the environment is maintained. During implementation of the Plan, specific redevelopment proposals may warrant further specific environmental analysis as required by the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. ("CEQAJ. Availability of Community Facilities and Services The EIR determined that the Plan would not have a significant impact on public facilities including fire protection, police, water,wastewater, storm drain, and solid waste services. The Plan provides that any redevelopment activity is to be subject to, and consistent with, the policies set forth in the City's General Plan, Zoning Ordinance, and local codes and ordinances, as they now exist or are hereafter amended; the General Plan incorporates policies to mitigate impacts on public services and facilities. As outlined in Section A of this Report, implementation of the Plan and its proposed projects are expected to improve the City's existing community facilities and services. The Plan will allow the Agency to utilize tax increment revenues to provide for the upgrading of existing, and construction of new, community facilities,which will be of benefit to the Project Area. Effect on School Population and Quality of Education The Project Area is served by the Huntington Beach Union High School District and the Huntington Beach City School District (collectively, the "Districts"). Section 4.9 of the EIR describes the direct and cumulative impacts of the Plan's implementation on area schools. The EIR indicates that development fees and/or land set-asides for schools would be sufficient to fund these facilities. Redevelopment Law also provides the Districts with statutory payments from generated tax increment, irrespective of ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -M-3- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A whether the Districts suffer impacts from Plan adoption. This revenue may be used for capital and operational purposes, including school facilities. Plan implementation will not result in excess development of that allowed by the City's General Plan. Therefore,the adoption of the Plan will not cause the Project Area to generate more students than could occur in connection with development allowed in the General Plan. The City has adopted policies in the General Plan to mitigate impacts of General Plan buildout on schools; implementation of the Plan will adhere to the General Plan policies to mitigate impacts on schools. Property Taxes and Assessments The Plan calls for various methods of financing its implementation. Because redevelopment agencies do not have the constitutional authority to impose taxes, implementation of the Plan will not cause an increase in property tax rates. Rather, the principal method of financing redevelopment will be the utilization of tax increment revenues generated by the Project Area. Tax increment financing reallocates property tax revenues generated by increases in the assessed value of property in the Project Area. Although redevelopment of the Project Area will increase the assessed valuation, Project Area property owners will not experience increases in property taxes beyond those normally allowed by other state law and state constitutional provisions. Low and Moderate Income Housing Program A. Number of Dwelling Units Housing Low and Moderate Income Households Expected to be Destroyed or Removed by the Project At this time, the Agency does not expect that implementation of the Project would cause the removal of any Project Area housing. No housing units are currently located in the Project Area. a Number of Persons and Families of Low and Moderate Income Expected to be Displaced by the Project As discussed above, the Agency estimates that no households of low and moderate income will be displaced by the implementation of the Plan. C. General Location of Replacement Low and Moderate Income Housing to be Rehabilitated, Developed and Constructed Because the Agency does not anticipate removing or demolishing any housing units in the Project Area, no replacement housing would be needed. D. Number of Dwelling Units Housing Persons of Low and Moderate Income Planned for Construction or Rehabilitation Other than Replacement Housing ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 M-4- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A As discussed in Section E of this Report, the Project Area is projected to generate as much as $30 million in housing fund revenues. The Agency will invest its housing fund resources into a variety of housing programs described in Section A of this Report. At this time, the Agency does not have any specific plans for construction or rehabilitation of any low and moderate- income units in the Project Area. E. Projected Means of Financing Rehabilitation and New Construction of Housing for Low and Moderate Income Households The Agency intends to utilize not less than 20%of its tax increment revenues to finance the rehabilitation, construction, purchase,and mortgage assistance of housing for low and moderate income households, in accordance with the provisions of the Redevelopment Law as it now exists or may hereafter be amended. The Agency will also cooperate with the City to pool funds and resources beyond the tax increment set aside funds if it is determined to be necessary by both bodies in order to improve the City's affordable housing stock- F. Projected Timetable for Meeting the Plan's Relocation, Rehabilitation and Replacement Housing Objectives Implementation of the Plan should not cause the Agency to relocate or remove and thus replace, any Project Area housing. The time frame for rehabilitating units pursuant to the Plan will be subject to the availability of housing fund revenues. Rehabilitation activities will be gradually phased over the 30-year duration of the Plan. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8.2002 -M-5- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A Southeast Coastal Redevelopment Project Draft Redcamlop ment Plan January 22, 2002 Redevelopment Agency of the City of Huntington Beach 2000 Main Street, 5th Floor Huntington Beach, Califomia 92648 �g.-®R 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.334 Ex.A r1qk A Summary of the Agency's Consultafiions with Affected Taxing Entities and a Response to Said Entities' Concerns Regarding the Plan According to the Orange County Auditor-Controller's office,the following 15 taxing entities levy taxes within the Project Area: i) City of Huntington Beach 2) Huntington Beach City School District 3) Huntington Beach Union High School District 4) Coast Community College District s) Orange County Municipal Water District s) Metropolitan Water District n Orange County Department of Education s) Orange County Sanitation District 9) Orange County Water District 1 o) Orange County Cemetery District ii) Orange County Flood Control District 12) Orange County Transit Authority 1 3) Orange County Vector Control District 14) Orange County Harbors Beaches& Parks Is) Orange County General Fund On October 16, 2001, these entities were mailed, via certified mail, the Statement of Preparation of the Redevelopment Plan. On January 24,2002,the Preliminary Report and Draft Redevelopment Plan were transmitted via certified mail to the ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH APRIL 8,2002 -N-1- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.A taxing entities. Finally, all taxing agencies will receive the notice of joint public hearing scheduled for May 20, 2002, also via certified mail. As a part of each of these three transmittals, the Agency offered to consult with the affected taxing entities pursuant to Section 33328 of Redevelopment Law. Aside from comments addressing the Environmental Impact Report, the Agency has not yet been contacted by any taxing entities regarding the proposed Plan. ROSENOW SPEVACEK GROUP,INC. REDEVELOPMENT AGENCY OF THE CITY OF HUNIINGTON BEACH APRIL 8,2002 -N-2- SOUTHEAST COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Res.No.334 Ex.B Draft Redevelopment Plan Res.No.334 Ex.B Draft Redevelopment Plan Southeast Coastal Redevelopment Project Table 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................................................ 9 (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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 Vlll (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 Xl (1100) PROCEDURE OF AMENDMENT................32 Exhibit A- Project Area Map...................................................33 Exhibit B - Legal Description..................................................34 Exhibit C - 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.334 Ex.B Draft Redevelopment Plan Southeast Coastal Redevelopment Project SECTION 1 (100) INTRODUCTION (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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B SECTION11DEFINITIONS 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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 seg.)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) PROJECT AREA BOUNDARIES 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. SECTION11) REDEVELOPMENT PLAN GOALS 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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex'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 modem, 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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B SECTION1 1 • ACTIONS (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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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) Properly Acquisition 1. (503) Acquisition of Real Propefii 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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B (512) Payments to Ta)ng 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 Califomia Relocation Assistance Law (Government Code Section 7260, et seq.) (`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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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) Properly 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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex'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 cant' 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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex'B authorization to act as may, from time to time, be provided by the Redevelopment Law and other applicable provisions of law. SECTION . 11 1 IN THE PROJECT (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 codes, 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 and the General Plan the following uses are not permitted by this Plan: ■ Auto dismantling • Heliports Maintenance& Service Facilities • Sex Oriented Businesses (regulated by HBMC Chapter 5.24 & 5.60) ■ Small animal production and processing • Swap Meets, Indoor/Flea Markets • Vehicle Storage • Vehicle/Equipment Repair ROSENOW SPEVACEK GROUP,INC. PAGE 20 DRAFT REDEVELOPMENT PLAWes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B authorization to act as may, from time to time, be provided by the Redevelopment Law and other applicable provisions of law. SECTION • 1 1PROJECT (601) Maps and Uses Permitted //Z The Map attached hereto as Exhibit A and incorporated,herein illustrates the location of the Project Area boundaries. ��T'he land uses permitted by this Plan shall be those permitted b f e General Plan and zoning ordinance, and all other state a local building codes, guidelines, or specific plans as they ow exist or are hereafter amended. A diagram of current pe itted and prohibited uses is presented on Exhibit D. (602) Prohibbed Uses Notwithstanding, any other provi ' n of this Plan and the General Plan the following uses are not ermitted by this Plan: ■ Auto dismantling with n enclosed building • Group Residential • Heliports Maintenance& Service Facilities • Sex Oriented Businesses (regulated by HBMC Chapter 5.24 & 5.60) ■ Small imal production and processing within an enclosed buil . g • S ap Meets, Indoor/Flea Markets • ehicle Storage • Vehicle/Equipment Repair 1 f ROSENOW SPEVACEK GROUP,INC. PAGE20 DRAFT REDEVELOPMENT PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 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. PAGE 22 DRAFT REDEVELOPMENT PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 Heiqht 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) Si ns 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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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. SECTION1 1) METHODS FORPROJECT (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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 cant' 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 PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B SECTION11ACTIONS 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 fulfilment 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 home 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,INC. PAGE 29 DRAFT REDEVELOPMENT PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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. SECTION IX (900) ADMINISTRATION AND ENFORCEMENT 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. SECTION111) PLAN LIMITATIONS 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 PLAN Res.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B : SECTION11) PROCEDURE OF 1 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 Map 21- iart s?'f t t .<�$ r� AS °� sS*a ertdq F � © ,�� »tr �-fit �i it;��*S ,+ _ .I �4 �`3 to x� ti.,jj�ge ✓H4' W AGIj1Ih�' ` 1 �~"�, t•� �1 i 1t „P ���� \.���� -w�,��r(1�a� f��ry �`��`� © t+{y Zi�r i r u+"3 Yr e• 'u k ��` 4�`as�rt'ty a *•J a t11 `yZ +4� G+ ,� ux?.-r as-. ai < t" C9' a ti 4eat"t r��' Cru .s .sl7icd'M,j� {=��.� AK?? �eQn 4T �:.�A��sy` � ��- ����. f+. ■`�6'sbi lt.� .�nY.*k to.�V{F;.?a� +}tom>" VA i; C �' S �._^ �... �q,, �V i ,Y .+,4.�1 aXYr's}G.� r !{{'1),,.♦ i°5a : .'�•`� �y re '' ���k7 ,� �_ ,�� r't',. ,7 �k Ftt�-"�L"',�744`9,+i i�1,�� 1� k't�§ .�iR s t v S •iY f_ L .rt ,s> �`' � (�:,., {/rtt'fifi Np o�yi 4� fy'ti��= ,,>�.^ 1zi st•,..�S�.l a , t \'dt Y Res.No.334 Ex.B Draft Redevelopment Plan Southeast Coastal Redevelopment Project Exhibit B— Legal Description 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 Vl, (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 27025'36" 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.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 its 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 4405644" 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 its 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 0016'38" 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 PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 Beginning (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 89027'32" E, 86.00 feet, along the centerline of Hamilton Avenue; B Thence leaving said centerline S 0032'28"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; 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 8902732" E, 820.45 feet along said centerline of Hamilton Avenue; I I Thence leaving said centerline S 003228"W, 50.00 feet to the south line of said Hamilton Avenue and the True Point Of Beginning; III Thence S 8902732" 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 DRAFT REDEVELOPMENT PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 47024'59" E; VI Thence northwesterly 374.50 feet along said curve (chord length is 364.14 feet)through a central angle of 46052'55"to a tangent line; VII Thence N 89027'56"W, 89.36 feet along said tangent line; Vill Thence N 0016'46" E, 465.13 feet to the True Point Of Beginning. (Contains 5.937 acres more or less) 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) _ ti0 L dDP Fj4o44.,_ �► ZSo Wsep'h G Berleth P.I .S 734O OF C Date (Joseph G Derieth P.L.S 7340 Date 9/25/01) ROSENOW SPEVACEK GROUP,INC. PAGE 37 Res.No.334 Ex.B Draft Redevelopment Plan Southeast Coastal Redevelopment Project g of the Proposed ImprovementsInfrastructure 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 Proiects: Upsize existing storm drains, install new storm drains, and install new pumping stations to facilitate future development and improve inadequate facilities. ■ Flood Control Proiects: 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 Proiects: 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 Proiects: Continue implementation of median and other streetscape projects along Pacific Coast Highway and other arterials serving Project Area. ■ Recreational/Open Space Proiects: 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 PLANRes.No.334 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.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 ■ 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 Existinq 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.334 Ex.B Draft Redevelopment Plan Southeast Coastal Redevelopment Project Exhibit D — Diagram of Permitted and Prohibited Land Uses 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 and the General Plan: o Auto dismantling o Heliports Maintenance& Service Facilities o Sex Oriented Businesses (regulated by HBMC Chapter 5.24 & 5.60) o Small animal production and processing o Swap Meets, Indoor/Flea Markets o Vehicle Storage o Vehicle/Equipment Repair e ROSENOW SPEVACEK GROUP,INC. PAGE 40 Res.No.334 Ex.B Draft Redevelopment Plan Southeast Coastal Redevelopment Project Exhibit D — Diagram of Permitted and Prohibited Land Uses 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 and the General Plan: o Auto dismantling within an enclosed building o Group Residential o Heliports Maintenance& Service Facilities o Sex Oriented Businesses (regulated by HBMC Chapter 5.24 & 5.60) o Small animal production and processing within an enclosed building o Swap Meets, Indoor/Flea Markets o Vehicle Storage o Vehicle/Equipment Repair fd ; <. .._ ROSENOW SPEVACEK GROUP,INC. PAGE 40 ` DRAIFT REDEVELOPMENT PLAN Res.No.a34 SOUTHEAST COASTAL REDEVELOPMENT PROJECT Ex.B rM General Plan ri Southeast Coastal Area 'Lit I I Wig ` ' ` ' RD8ENOVVQPEVACB{GROUP, INC. PAGE41 Res. No. 334 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 15th day of April, 2002 and that it was so adopted by the following vote: AYES: Green, Dettloff, Bauer, Cook, Houchen, Winchell, Boardman NOES: None ABSENT: None ABSTAIN: None 400 Clerk of the Redevelopment Agency of the City of Huntington Beach, CA