HomeMy WebLinkAboutRedevelopment Agency - 387 RESOLUTION NO. 387
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH APPROVING A COOPERATION AGREEMENT AND
MAKING CERTAIN DETERMINATIONS AND FINDINGS RELATED THERETO
WHEREAS the City Council of the City of Huntington Beach ("City Council")
adopted Redevelopment Project Area No. 1(Yo rktown-Lake) on September 20,
1982, by Ordinance No.2576; Project Area No. 2 (Talbert-Beach) on September 20,
1982 by Ordinance No. 2577; Project Area No. 3 (Original Main Pier) on September
20, 1982 by Ordinance No. 2578; Project Area No. 4 (Oakview) on November 1,
1982 by Ordinance 2582; Project Area No. 5 (added Main-Pier) on September 6,
1983 by Ordinance 2634; Project Area No. 6 (Huntington Center) on November 26,
1984 by Ordinance 2743. Project Area Nos. 1, 2, 3, 4, 5 and 6 were merged into the
Merged Project Area by Ordinance 3343 on December 16, 1996. Southeast Coastal
Redevelopment Project Area adopted on June 17, 2002 by Ordinance 3561
(collectively with Merged Project Area, the "Project Areas"), which results in the
allocation of taxes from the Project Areas to the Redevelopment Agency of City of
Huntington Beach (the "Agency") for purposes of redevelopment.
The intent of the Redevelopment Plans are, in part, to provide for the
construction and installation of necessary public infrastructure and facilities and to
facilitate the repair, restoration and/or replacement of existing public facilities and to
perform specific actions necessary to promote the redevelopment and the economic
revitalization of the Project Areas; and to increase, improve and preserve the
community's supply of low and moderate income housing, some of which may be
located or implemented outside the Redevelopment Project Areas; and to take all
other necessary actions to implement the Redevelopment Plans for the respective
Project Areas and to expend tax increment to accomplish the goals and objectives of
the respective redevelopment projects.
The Agency has adopted its Five-Year Implementation Plans for the Project
Areas, as amended from time to time (the "Implementation Plans") with established
goals to support affordable housing, economic development, community
revitalization, commercial revitalization, and institutional revitalization. To implement
the programs and activities associated with each goal, the Agency has made
redevelopment fund commitments based on estimated available tax increment
revenue and debt financing structures.
The Agency and the City of Huntington Beach (the "City") wish to cooperate
with one another to bring about the redevelopment of the Project Areas and
accomplish various tasks set forth in the Redevelopment Plans and the
Implementation Plans.
Pursuant to Section 33220 of the California Community Redevelopment Law
(Health and Safety Code Section 33000 et seq.) (the "CRL") certain public bodies,
including the City may aid and cooperate in the planning, undertaking, construction,
or operation of redevelopment projects.
The Agency and the City have prepared a Cooperation Agreement (the
"Agreement") to provide for the implementation of certain projects set forth in the
Schedule of Projects attached thereto as Exhibit 1 (the "Projects"), and to make
payments by the Agency to the City in accordance with the Schedule of Payments
attached thereto as Exhibit 2 and as otherwise necessary to reimburse the City for
the cost to the City of performing its obligations thereunder in accordance with the
Schedule of Performance attached thereto as Exhibit 3, subject to all of the terms
and conditions of the Agreement.
The programs and activities associated with the Projects include, but are not
limited to, acquisition and disposition of property, development of design criteria,
design, planning, preparation of construction bid documents, financial analysis,
financing and new construction or rehabilitation. To carry out the Projects in
accordance with the objectives and purposes of the Redevelopment Plans for the
Project Areas and the Implementation Plans (Exhibit 4), the Agency desires
assistance and cooperation in the implementation and completion of the Projects.
The City wishes to enter into the Agreement with the Agency to aid the Agency and
cooperate with the Agency to expeditiously implement the Projects in accordance
with the Redevelopment Plans for the Project Areas and the Implementation Plans
and undertake and complete all actions necessary or appropriate to ensure that the
objectives of the Redevelopment Plans for the Project Areas and the Implementation
Plans are fulfilled within the time effectiveness of the Project Areas.
In considering the Agency's desire to ensure timely implementation and
completion of the Projects, the Agency wishes to enter into the Agreement with the
City for the pledge of net available tax increment to finance the Projects. The
purpose of the Agreement is to facilitate the implementation of the Projects and to
provide funding necessary to effectuate the completion of the Projects with net
available tax increment in this current fiscal year and forthcoming fiscal years.
Net available tax increment is defined as any tax increment, net of existing
debt service payments, and existing contractual obligations received by the Agency
or any lawful successor of the Agency and/or to any of the powers and rights of the
Agency pursuant to any applicable constitutional provision, statute or other provision
of law now existing or adopted in the future. The pledge of net available tax
increment will constitute obligations to make payments authorized and incurred
pursuant to Sections 33445 of the CRL and other applicable statutes. The
obligations set forth in the Agreement will be contractual obligations that, if breached,
will subject the Agency to damages and other liabilities or remedies.
By approving and entering into the Agreement, the Agency will approve the
pledge of net available tax increment from the Project Areas to pay for the Projects.
The obligations of the Agency under the Agreement shall constitute an
indebtedness of the Agency for the purpose of carrying out the Redevelopment
Plans for the Project Areas.
It is in the best interests of the City and for the common benefit of residents,
employees, business tenants and property owners within the Project Areas and the
City as a whole for the Projects to be developed and constructed.
The Agency's low and moderate income housing fund for the Projects located
outside of the Project Areas are in accordance with Section 33334.2 of the CRL
because the use of such funds will be of benefit to the Project Areas.
All other legal prerequisites to the adoption of this Resolution have occurred.
The Agency has received and heard all oral and written objections to the
proposed payments by the Agency to the City for the Projects as described in the
Agreement, and to other matters pertaining to this transaction, and all such oral and
written objections are hereby overruled.
The Agency hereby finds and determines that the foregoing recitals are true
and correct.
NOW THEREFORE , the Redevelopment Agency of the City of Huntington
Beach does hereby resolve as follows:
Section 1. Based on the evidence in the record, the Agency hereby finds
and determines, with respect to the Projects that are publicly owned and are located
inside or contiguous to the respective project area, that:
(a) Said Projects and the programs and activities associated
therewith are of benefit to the respective Project Area by helping to eliminate blight
within the project area or providing housing for low- or moderate income persons;
and
(b) No other reasonable means of financing said Projects and the
programs and activities associated therewith are available to the community; and
(c) The payment of funds by the Agency for the costs related to said
Projects and the programs and activities associated therewith is consistent with the
respective Implementation Plan adopted pursuant to Section 33490 of the CRL.
Section 2. Based on the evidence in the record, the Agency hereby finds
and determines, with respect to the use of low- and moderate income funds for the
Projects located outside of the Project Areas that such use will be of benefit to the
Project Areas in accordance with Section 33334.2 of the CRL.
Section 3. The Agency hereby consents to the payments by Agency to City
in accordance with the Schedule of Payments attached to the Agreement as Exhibit
2.
Section 4. The Agreement in substantially the form presented to the
Agency is hereby approved, a copy of which is on file with the Secretary of the
Agency.
Section 5. The Agency Executive Director, or designee, is hereby
authorized to execute the Agreement on behalf of the Agency, together with such
non-substantive changes and amendments as may be approved by the Agency
Executive Director and Agency Special Counsel.
Section 6. The Agency Executive Director, or designee, is hereby
authorized, on behalf of the Agency, to sign all documents necessary and
appropriate to carry out and implement the Agreement, and to administer the
Agency's obligations, responsibilities and duties to be performed under the
Agreement.
Section 7. In the event the Agency desires to issue bonds, notes, or other
instruments of indebtedness of the Agency to carry out redevelopment projects, then
any indebtedness of the Agency to the City, including any interest accrued thereon,
shall be deemed not to be a first pledge of tax increment allocations received by the
Agency pursuant to Section 33670 of the CRL; and any indebtedness of the Agency
to the City, including any interest accrued thereon, shall be subordinate to any
pledge of tax increments to bondholders or the holders of other such instruments of
indebtedness.
Section 8. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington
Beach at a special meeting thereof held on the 28thday of January2011.
Attest: HUNTINGTON BEACH REDEVELOPMENT
AGENCY
By: By:
ecretary V Ac
Ancy
REVIEWE APPROVED: INITIATED AND APPROVED:
Exec ti I D rector Deputy Executiv irector
APPROVED AS TO FORM:
By: ,
Ajency Cous l
Section 5. The Agency Executive Director, or designee, is heresy
authorized to execute t ie 'Agreement on behalf of the Agency, together with such
non-substantive changes and amendments as may he approved ley the agency
Executive Director and Agency Special Counsel.
Section 6. The Agency Executive Director, or designee, is hereby
authorized, on behalf' of the Agency, to sign all documents necessary and,
appropriate to carry out and implement the Agreement, and to administer the
Agency's obligations, responsibilities and deities to be performed under the
Agreement.
Section 7. In the event the Agency desires to issue bonds, notes_ or other
instruments of indebtedness of the Agency to carry out redevelopment projects, there
any indebtedness of the Agency to,the City, including any interest accrued thereon;
shall be deemed not to be a first pledge of tax increment allocations received by the
Agency pursuant to Section 33670 of the' P and any indebtedness-of the Agency
to the City, including any interest accrued thereon, shall be subordinate to any
pledge of tax increments to bondholders or the holders of other such instruments uments of
indebtedness.
Section _ This Resolution shall take effect Immediately upon its adoption.
PASSED AND ADOPTED by the Redevelopment Agency of the''City of Huntington
Beach at aspeal meeting thereofheld on.the _a day of . 1.
Attest: HUNTINGTON BEACH REDEVELOPMENT
AGENCY
By: .... ..__-----. By:
_.. q
Secretary Agency Chair
REVIEWED AND APPROVED: ]NITIATED AND APPROVED.
......._.. .. _
Executive Director Deputy Executive Director
APPROVED AS TO FORM.
COUNTE
Kane,, Ba11mer &'' Berkman
Agency oun*
Agency Special Counsel
EXHIBIT 1
REDEVELOPMENT PROJECT AREAS
CAPITAL IMPROVEMENT PROGRAM
Downtown Parking $9,200,000
(400 new spaces @ $23,000)
Downtown Street Lights Project (Public Works Estimate) $804,000
Main Street Infrastructure/Streetscape Improvements $12,800,000
(Per Downtown Specific Plan and Public Works—includes
Reconstruction of Main Street/5t"Street and Streetscape)
Warner/Beach Street Improvements $160,000
(Proposed 50% of State grant match for street widening/signals)
Redevelopment Area —Street/Tree Replacement $1,000,000
(Based upon Street/Tree Petition List/eligible streets)
Improvements to Main Street Library $1,250,000
(ADA Bathrooms/Elevator/Roof/General Rehab)
Improvements to Oakview Library $1,000,000
(Roof/Plumbing/New Electrical/General Rehab)
Seismic Upgrades Murdy Fire Station $500,000
Rehabilitation to Lake Street Fire Station $800,000
Pedestrian Bridge Enhancements $250,000
Oakview Community Center Enhancements $750,000
(ADA Improvements/Roof/General Rehab)
Oakview Childcare Center $300,000
(Exterior Bathrooms/ADA Improvements)
Oakview Sports Field Lighting $750,000
(Lights on City field)
Gothard Street Reconstruction $500,000
Edinger Avenue Reconstruction $500,000
Slater Avenue Reconstruction $500,000
Hamilton Avenue Reconstruction $1,000,000
(Southeast Coastal Area)
AFFORDABLE HOUSING
Huntington Yorba (at-risk) - $13,575,000
(At-risk family project 181 units leverages at$75,000/unit)
Beach/Warner $3,850,000
(Developer wants 4%Tax Credit = 77 units at $50,000/unit—no land carry)
Beach/Ellis $1,350,000
(10% Inclusionary project—9 very low/9 low units at $75,000)
Edinger/Gothard $4,000,000
(40 Affordable units out of 80 units/Developer request$100,000/unit)
Main/Ellis/Delaware $1,500,000
(proposed new units for sale—5 new units/$300,000)
Beach/Ellis/Main $6,000,000
(40 new rental units, 100% affordable, leveraged at $150,000/ unit)
Oakview Mixed Use Building/Koledo $20,000,000
(Demolition and new construction of 100+ units and community room)
First Time Homebuyers Program $5,000,000
(Continuing program for 10 years at$500,000 year)
Pacific City $14,400,000
(Required 81 units -48 moderate on-site ownership at$300,000/unit)
Dairyview $200,000
(OPA with 4 units relocation/long term covenants)
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond Repayment $5,137,000
5T" Street Development $4,000,000
(Proposed OPA with property owners to increase parking and assist in acquisition)
6t" @ PCH —parking/removal of billboard sign $2,500,000
(OPA with Property owner to increase parking/assist affordable housing)
7t" @ PCH —parking/housing/retail $1,500,000
(OPA with Property owner to increase parking/assist affordable housing)
Waterfront Section 108 $ 3,665,000
(Section 108 HUD Loan paid by tax increment)
Administrative Staff costs $ 6,695,000
(30%of Agency Staff for 14 years with PERS increases)
*projects and proposed figures are from the Affordable Housing Strategy, Affordable Unit cost
estimates or preliminary discussion with property owners.
EXHIBIT 2
Merged Project Area-Capital Improvement Program
Amortization Schedule
Merged Project Area- Capital Balance as of
Improvement Program 9/30/10
Capital Improvement Projects 30,340,400
Affordable Housing Projects 69,875,000
Economic Development 23,497,000
Subtotal 123,712,400
Add: FY 10-11 Interest 4,713,442
Total Payout 128,425,842
Face Value 128,425,842
Annual Interest 0.0381
Periods 20
Beginning Total Annual
Payment Date Balance Principal Interest Ending Balance Payment
10/1/2011 128,425,842 (4,398,472) (4,893,025) 124,027,370 9,291,497
10/1/2012 124,027,370 (4,566,054) (4,725,443) 119,461,316 9,291,497
10/1/2013 119,461,316 (4,740,021) (4,551,476) 114,721,295 9,291,497
10/1/2014 114,721,295 (4,920,616) (4,370,881) 109,800,679 9,291,497
10/1/2015 109,800,679 (5,108,091) (4,183,406) 104,692,588 9,291,497
10/1/2016 104,692,588 (5,302,709) (3,988,788) 99,389,879 9,291,497
10/1/2017 99,389,879 (5,504,743) (3,786,754) 93,885,136 9,291,497
10/1/2018 93,885,136 (5,714,473) (3,577,024) 88,170,663 9,291,497
10/1/2019 88,170,663 (5,932,195) (3,359,302) 82,238,468 9,291,497
10/1/2020 82,238,468 (6,158,211) (3,133,286) 76,080,257 9,291,497
10/1/2021 76,080,257 (6,392,839) (2,898,658) 69,687,418 9,291,497
10/1/2022 69,687,418 (6,636,406) (2,655,091) 63,051,012 9,291,497
10/1/2023 63,051,012 (6,889,253) (2,402,244) 56,161,758 9,291,497
10/1/2024 56,161,758 (7,151,734) (2,139,763) 49,010,024 9,291,497
10/1/2025 49,010,024 (7,424,215) (1,867,282) 41,585,809 9,291,497
10/1/2026 41,585,809 (7,707,078) (1,584,419) 33,878,731 9,291,497
10/1/2027 33,878,731 (8,000,717) (1,290,780) 25,878,014 9,291,497
10/1/2028 25,878,014 (8,305,545) (985,952) 17,572,469 9,291,497
10/1/2029 17,572,469 (8,621,986) (669,511) 8,950,484 9,291,497
10/1/2030 8,950,484 (8,950,484) (341,013) (0) 9,291,497
Southeast Coast Project Area
Amortization Schedule
Balance as of
Southeast Coast Project Area 9/30/10
Capital Improvement Assistance 1,000,000
Subtotal 1,000,000
Add: FY 10-11 Interest 38,100
Total Payout 1,038,100
Face Value 1,038,100
Annual Interest 0.0381
Periods 20
Beginning Total Annual
Payment Date Balance Principal Interest Ending Balance Payment
10/1/2011 1,038,100 (35,554) (39,552) 1,002,546 75,106
10/1/2012 1,002,546 (36,909) (38,197) 965,637 75,106
10/1/2013 965,637 (38,315) (36,791) 927,323 75,106
10/1/2014 927,323 (39,775) (35,331) 887,548 75,106
10/1/2015 887,548 (41,290) (33,816) 846,258 75,106
10/1/2016 846,258 (42,863) (32,242) 803,395 75,106
10/1/2017 803,395 (44,496) (30,609) 758,898 75,106
10/1/2018 758,898 (46,192) (28,914) 712,707 75,106
10/1/2019 712,707 (47,951) (27,154) 664,755 75,106
10/1/2020 664,755 (49,778) (25,327) 614,977 75,106
10/1/2021 614,977 (51,675) (23,431) 563,302 75,106
10/1/2022 563,302 (53,644) (21,462) 509,658 75,106
10/1/2023 509,658 (55,688) (19,418) 453,970 75,106
10/1/2024 453,970 (57,809) (17,296) 396,161 75,106
10/1/2025 396,161 (60,012) (15,094) 336,149 75,106
10/1/2026 336,149 (62,298) (12,807) 273,851 75,106
10/1/2027 273,851 (64,672) (10,434) 209,179 75,106
10/1/2028 209,179 (67,136) (7,970) 142,043 75,106
10/1/2029 142,043 (69,694) (5,412) 72,349 75,106
10/1/2030 72,349 (72,349) (2,757) (0) 75,106
EXHIBIT 3
SCHEDULE OF PERFORMANCE
CAPITAL IMPROVEMENT PROGRAM 1—5 Years 5 — 10 Years 10—15 Years
Downtown Parking X
Downtown Street Lights Project X
Main Street Infrastructure/Streetscape Imprvmts X
Warner/Beach Street Improvements X
Redevelopment Area —Street/Tree Replacement X X X
Improvements to Main Street Library X
Improvements to Oakview Library X
Seismic Upgrades Murdy Fire Station X
Rehabilitation to Lake Street Fire Station X
Pedestrian Bridge Enhancements X
Oakview Community Center Enhancements X
Oakview Childcare Center X
Oakview Sports Field Lighting X
Gothard Street Reconstruction X
Edinger Avenue Reconstruction X
Slater Avenue Reconstruction X
Hamilton Avenue Reconstruction X
AFFORDABLE HOUSING
Huntington Yorba (at-risk) X
Beach/Warner X
Beach/Ellis X
Edinger/Gothard X
Main/Ellis/Delaware X
Beach/Ellis/Main. X
Oakview Mixed Use Building/Koledo X
First Time Homebuyers Program X X X
Pacific City X
Dairyview X
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond X X X
5T" Street Development X
6th @ PCH —parking/removal of billboard sign X
7th @ PCH — parking/housing/retail X
Waterfront Section 108 X X X
Administrative Staff costs X X X
EXHIBIT 4
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The Redevelopment Agency of The City of
Huntington
•Beach Off( OMIR�j'•;?e
Five Year Implementation Plan (2010-2014)
Huntington Beach Redevelopment Project
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December2009
ACKNOWLEDGEMENTS
Redevelopment Agency Board
Chair
CATHY GREEN
Vice-Chair
JILL HARDY
Members
KEITH BOHR
JOE CARCHIO
GIL COERPER
DON HANSEN
DEVIN DWYER
FRED A. WILSON
Executive Director
STANLEY SMALEWITZ
Deputy Executive Director
Staff
KELLEE FRITZAL
Deputy Director of Economic Development
LUIS GOMEZ
Economic Development Project Manager
DORIS POWELL
Assistant Project Manager
Huntington Beach Redevelopment Project
2010 - 2014 ImRlernentation Plan Pace I
PLAIN PURPOSE
This is the Five Year Implementation Plan (Implementation Plan) for the Huntington Beach
Redevelopment Project (Project Area) covering the period of fiscal years 2009/10 to 2013/14.
This Implementation Plan complies with California Redevelopment Law (Health and Safety Code
Section 33490), which requires redevelopment agencies to maintain (initiate and update each five
years thereafter) an implementation plan describing the steps and expenditures an agency will
take to achieve its redevelopment goals.
This Implementation Plan describes the goals and objectives of the Huntington Beach
Redevelopment Agency (Agency), which were established to eliminate blight within the Project
Area. It also describes past, current, and future projects and programs implemented to meet
Agency goals and objectives; and anticipated Agency expenditures needed to facilitate those
projects and programs described herein.
Agency goals and objectives are as follows:
• Eliminate physical and economic blight in the Project Area;
• Assist in business retention and attraction efforts to create jobs for residents;
• Create and preserve affordable housing in the Project Area;
• Renew and create economic activity within the Project Area; and
• Capitalize on the characteristics and resources unique to the area.
This Implementation Plan is intended to act as a general document that provides direction to the
Agency to address blighting conditions that remain in the Project Area. The Implementation Plan
sets Agency priorities for the coming five-year period, while accounting for budget constraints in
developing a program of activities to accomplish revitalization efforts. As new issues and
redevelopment opportunities arise during the five-year period, the Implementation Plan may be
amended, as necessary.
Implementation Plan Adoption Process
Each Implementation Plan must be presented and adopted at a duly noticed public hearing of the
Agency. Notice of Implementation Plan adoption must be published pursuant to Section 6063 of
the Government Code, mailed at least three weeks in advance to all persons and agencies that
have requested notice, and posted in at least four permanent places within the Project Area for a
period of three weeks. Publication, mailing, and posting shall be completed not less than 10 days
prior to the date set for hearing.
Implementation Plan Amendment and Midterm Review
The Agency may amend the Implementation Plan at any time after conducting a public hearing on
the proposed amendment. The Agency may amend the Implementation Plan if a new project or
program is developed during the five-year Implementation Plan period that is not currently
included in this document.
Huntington Beach Redevelop pent Project
2009 - 2014 Implementation Plan Page 2
Also, pursuant to Health and Safety Code Section 33490 (c), at least once within the five-year
term of the Implementation Plan, the Agency must conduct a public hearing and allow testimony
from all interested parties regarding the status of the Implementation Plan. This hearing must take
place no earlier than two years and no later than three years after the adoption of the
Implementation Plan.
Affordable Housing Requirements Not Included in this Implementation Plan
The documentation of affordable housing requirements within the Project Area is being prepared
and approved by the Agency under a separate document, which will be incorporated into this
Implementation Plan via reference. The "Affordable Housing Strategy" for the Project Area
satisfies the requirements of Sections 33334.2, 33334.4, 33334.6, 33413 (a), and 33413 (b) of the
Health and Safety Code. The Affordable Housing Strategy summarizes the Agency's housing
obligations pursuant to the legal requirements of AB 1290, AB 315, AB 437, AB 637, and SB 701
for the 2009/10 -2013/14 planning period.
Implementation Plan is Not a "Project" Under CEQA
Pursuant to Section 33490 (a)(1)(B) of the Health and Safety Code, the Implementation Plan does
not constitute a project within the meaning of Section 21000 of the Public Resources Code (the
California Environmental Quality Act [CEQA]). This Implementation Plan does not constitute an
approval of any specific program, project, or expenditure nor does it eliminate the requirement for
CEQA review (to the extent that it is required) at the time of approval of the program, project, or
expenditure.
PROJECT AREA BACKGROUND
• In 1982, the Agency adopted four (4) separate redevelopment areas: Main-Pier, Talbert-
Beach, Yorktown-Lake, and Oakview. The primary purpose of the original redevelopment
plans for these areas was to eliminate blight by encouraging revitalization activities within
the project areas.
• In 1983, the redevelopment plan for the Main-Pier Project Area was amended to expand
the Main-Pier Project Area boundaries.
• In 1984, the Agency adopted the Huntington Center Redevelopment Area (Bella Terra
Area).
• In December 1996, the Agency merged the five (5) previously identified redevelopment
project areas to form a single project area entitled the Huntington Beach Redevelopment
Project, which consists of a total of 619 acres.
Huntington Beach Redevelopment Project
2009 — 2014 Implementation Plan Page 3
A Description of each Subarea is provided below:
1. The 25-acre Talbert-Beach Subarea was adopted on September 20, 1982, by Ordinance
No. 2577. At its adoption, this Subarea consisted of many encyclopedia lots which were
small undevelopable parcels under multiple ownerships. The area is now characterized
by a balance of industrial and residential development.
2. The 30-acre Yorktown-Lake Subarea was adopted on September 20, 1982, by Ordinance
No. 2576. This Subarea consists primarily of single family homes, an apartment complex
for seniors, and the City's Civic Center.
3. The original five-block Main-Pier Subarea was adopted on September 20, 1982 by
Ordinance 2578. On September 6, 1983, the Redevelopment Plan was amended by
Ordinance No. 2634, enlarging the Main-Pier Redevelopment Project Area to
approximately 336 acres. The Subarea is located along a portion the City's beach and
encompasses the downtown. It is characterized by a mix of residential, retail, office,
hotel, and public (i.e. Huntington Beach Pier, City Beach, etc.) uses.
4. The 68-acre Oakview Subarea was adopted on November 1, 1982, by Ordinance No.
2582. This Subarea is predominantly developed with older, multifamily housing that are
not up to building codes.
5. The 160-acre Huntington Center Subarea was adopted on November 26, 1984, by
Ordinance No. 2743. It is comprised exclusively of commercial uses and contains the
former Huntington Center Mall, which has been redeveloped into Bella Terra Mall, a
regional lifestyle retail and entertainment center. An OCTA Transit Center is also
located within this Project Area.
Maps outlining the Subarea boundaries are presented in Exhibits A-E attached to this
Implementation Plan.
Project Area Time Limits
Pursuant to California Redevelopment Law, redevelopment areas are subject to various time
limits. The table below summaries the Project Area time limits pertaining to plan effectiveness,
eminent domain authority, incurring debt, and repaying debt.
D, - e
•e ee De e s e,
Su6alrea Aese o D, a De ee e _
Yorktown-Lake 9/20/1982 9/20/2025 No Authority Rescinded 9/1/2035
Talbert-Beach 9/20/1982 9/20/2025 No Authority Rescinded 9/1/2035
Original Main-Pier 9/20/1982 9/20/2025 7/15/2014 Rescinded 9/1/2035
Oakview 11/1/1982 11/1/2025 No Authority Rescinded 11/1/2035
Added Main-Pier 9/6/1983 9/6/2026 7/15/2014 Rescinded 9/6/2036
Huntington Center 1 11/26/1984 1 11/26/2027 1 7/15/2014 1 Rescinded 11/26/2037
Oakview Subarea excludes eminent domain on certain properties(Exhibit D-Redevelopment Plan).
Original Main-Pier and Added Main-Pier Subareas excludes eminent domain on property on which any persons legally reside.
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 4
BLIGHT ELIMINATION
Redevelopment projects are established in order to remove both physical and economic blighting
conditions within the Project Area boundaries. Through field surveys and detailed research, the
Agency adopted the Project Area boundaries, by first properly documenting the existence of both
physical and economic blight within each Subarea. The definition of blight has evolved through
State Legislation since the various subareas of the Project Area were first established in 1982.
The current physical and economic conditions that cause blight, as stated in Section 33031 of the
Health and Safety Code, are described below. In order for a property to be classified as blighted,
at least one condition of both physical and economic blight must exist.
Physical Blighting Conditions
• Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions
may be caused by serious building code violations, serious dilapidation and deterioration
caused by long term neglect, construction that is vulnerable to serious damage from
seismic or geologic hazards, and faulty or inadequate water or sewer utilities.
• Conditions that prevent or substantially hinder the viable use or capacity of buildings or
lots. These conditions may be caused by buildings of substandard, defective, or obsolete
design or construction given the present general plan, zoning, or other development
standards.
• Adjacent or nearby incompatible land uses that prevent the development of those parcels
or other portions of the project area.
• The existence of subdivided lots that are in multiple ownership and whose physical
development has been impaired by their irregular shapes and inadequate sizes, given
present general plan and zoning standards and present market conditions.
Economic Blighting Conditions
• Depreciated or stagnant property values.
• Impaired property values, due in significant part, to hazardous wastes on property where
the agency may be eligible to use its authority as specified in Article 12.5 (commencing
with Section 33459).
• Abnormally high business vacancies, abnormally low lease rates, or an abnormally high
number of abandoned buildings.
• A serious lack of necessary commercial facilities that are normally found in neighborhoods,
including grocery stores, drug stores, and banks and other lending institutions.
• Serious residential overcrowding that has resulted in significant public health or safety
problems. As used in this paragraph, 'overcrowding" means exceeding the standard
referenced in Article 5 (commencing with Section 32) of Chapter 1 of Title 25 of the
California Code of Regulations.
• An excess of bars, liquor stores, or adult oriented businesses that has resulted in
significant public health, safety, or welfare problems.
• A high crime rate that constitutes a serious threat to the public safety and welfare.
Huntington Beach Redevelopment Project
2009 — 2014 Inraslementation Plan Page 5
State Redevelopment Law characterizes inadequate public improvements (including water and
sewer facilities) as blight when the aforementioned conditions are present.
The Implementation Plan must include a description of remaining blight in the project area and
how the Agency plans to address those conditions. During the preparation of this Implementation
Plan, a blight survey was conducted to identify physical and economic blighting conditions in the
Project Area. The following blight remains in the project areas:
• Deterioration and dilapidation of buildings;
• Unsafe building conditions caused by buildings not seismically retrofitted;
• Irregular subdivision of lots (shapes and sizes) that impairs physical development of the
lots;
• Buildings with substandard and obsolete design that hinder the viable use or capacity of
buildings or lots;
• High crime rates relative to other areas of the City; and
• Inadequate public improvements.
Redevelopment Agencies often find that blighting conditions on properties outside of the Project
Area are affecting the success of blight elimination within a redevelopment project area. To
determine other areas within the City (many are adjacent to the Project Area) that exhibit physical
and economic blighting conditions the Agency undertook a preliminary feasibility study to analyze
blight. A blight survey was conducted, which identified approximately 139 acres exhibiting the
following physical and economic blighting conditions:
• Unsafe and unhealthy building conditions caused by buildings built prior to 1971 that were
not seismically retrofitted to address liquefaction conditions that exist on the property;
• Deterioration and dilapidation of exterior building materials;
• Buildings with substandard and obsolete design that hinder the viable use or capacity of
buildings or lots;
• Declining and stagnant property values; and
• Other factors causing physical and economic blight.
These blighted properties could have a negative effect on the redevelopment actions occurring
within the Project Area. Therefore, the Agency is moving forward with the tasks necessary to
accomplish a Plan Area Amendment, which could potentially increase the Project Area by up to
139 acres.
Huntington Beach Redevelopment Project
2009 — 2014 Implementation Plan Page 6
AGENCY GOALS DESIGNED TO ELIMINATE BLIGHT
The Agency has developed twelve (12) general goals to address the existing blighting conditions
that remain in the Project Area. These goals are designed to guide the activities of the Agency
and structure revitalization projects that would address the remaining blight within the Project
Area.
• Eliminate and prevent the spread of conditions of blight;
• Expand the commercial base of the Project Area;
• Improve public facilities and public infrastructure;
• Improve inadequate drainage infrastructure;
• Improve and/or provide electric, gas, telephone, and wastewater infrastructure to both
developed and undeveloped properties within the Project Area;
• Promote local job opportunities;
• Encourage the cooperation and participation of residents, businesses, businesspersons,
public agencies, and community organizations in the redevelopment/revitalization of the
Project Area;
• Implement design and use standards to assure high aesthetic and environmental quality,
and provide unity and integrity to developments within the Project Area;
• Address parcels of property that are of irregular form and shape, are inadequately sized for
property usefulness and development, and/or are held in multiple ownership;
• Remove impediments to land disposition and development through the assembly of
property into reasonably sized and shaped parcels served by improved infrastructure and
public facilities;
• Recycle and/or develop underutilized parcels to accommodate higher and better economic
uses while enhancing the City's financial resources; and
• Develop housing opportunities for all income levels.
An example of how the Agency has eliminated blight within the Project Area is shown below with
the redevelopment of the Huntington Center now known as Bella Terra:
Ism
Before After
Huntington Beach Redevelopment Project
2009 - 2014 Iml2lernentation Plan Page 7
PROJECTS AND PROGRAMS
Since the inception of the Project Subareas, the Agency has aggressively sought to eliminate
blight within the Project Area through the implementation of various projects and programs. This
section outlines the Agency's past, current, and future efforts to meet the Project Area's goals and
objectives geared toward eliminating blight in the Project Area. The following table provides a
summary of the Agency's goals and the blighting factors on which the Agency focuses when
developing projects and committing expenditures:
GALS AND BLIGHT CATEGORIES
1 Eliminate and prevent the spread of conditions of blight.
2 Expand the commercial base of the Project Area.
3 Improve public facilities and public infrastructure.
4 Improve inadequate drainage infrastructure.
5 Improve and/or provide electric,gas,telephone, and wastewater infrastructure to both
developed and undeveloped properties within the Project Area.
6 Promote local job opportunities.
Encourage the cooperation and participation of residents, businesses, businesspersons,
7 public agencies, and community organizations in the redevelopment/revitalization of the
Project Area.
8 Implement design and use standards to assure high aesthetic and environmental quality, and
provide unity and integrity to developments within the Project Area.
9 Address parcels of property that are of irregular form and shape,are inadequately sized for
ro erty usefulness and development,and/or are held in multiple ownership.
Remove impediments to land disposition and development through the assembly of property
10 into reasonably sized and shaped parcels served by improved infrastructure and public
facilities.
11 Recycle and/or develop underutilized parcels to accommodate higher and better economic
uses while enhancing the Cit 's financial resources.
12 Develop housing opportunities for all income levels.
BL1
§C�TEGD�v '` ^& �` 9Y' BL:ikGF1TlP>t xi *�.'�'° ^, .: ter L, .
A Serious deterioration and dilapidation of buildings.
B Unsafe building conditions caused by buildings not seismically retrofitted.
C Irre ular subdivision of lots(shapes and sizes that impairs physical development of the lots.
Buildings with substandard and obsolete design that hinder the viable use or capacity o
D buildings or lots.
E High crime rates relative to other areas of the City.
F I Inadequate public improvements.
Huntington Beach Redevelopment Project
2009 - 2014 lmrslementation Plan Payee 8
Past Projects and Programs
The following projects highlight the Agency's past efforts to address the goals of the Agency and
assist in eliminating blight within the Project Area:
PROJECTS ACCOMPLISHED FROM 2005-2009
{:
Waterfront Project- Hyatt
Regency Huntington Beach 1, 2, 3, 6, 10, 11 & 12 F
Resort & Spa
Waterfront Project-William
Lyon Homes: Sea Cove 1, 3, 10, 11 & 12 F
Residential
Waterfront Project- Christopher
Homes: Sea Colony at 1, 3, 10, 11 & 12 F
Waterfront Residential
The Strand (Blocks 104-105), 1, 2, 3, 6, 8, 10 & 11 A, B, C, D, E & F
CIM Project
Property Acquisition of 7872
Edinger Avenue (Assessor 2, 6, 8, 10 & 11 D
Parcel Number: 142-081-28)
Bella Terra - Phase 1 1, 2, 3, 6, 8, 10 & 11 A, D & E
Details regarding each of the above stated projects are provided in the following pages:
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 9
Waterfront Proiect- Hyatt Regency Huntington Beach Resort& Spa
y�yr � iki
• In fiscal year 1996/97 the Agency entered into an agreement with the Robert Meyer
Corporation to develop what is today the Hyatt Regency Huntington Beach Resort and
Spa.
• The resort offers over 500 rooms and approximately 80,000 square feet of meeting rooms
and convention space.
• The Agency assisted the project with over $16.75 million, part of which was financed
through a federal loan of$6 million for required infrastructure.
• Agency staff 1) monitored the repayment of the Developer Advance loan and the Tax
Increment and Transient Occupancy Tax pledged as the sources for the loan repayment
(this activity is ongoing), 2) calculated and processed the payments to the developer, 3)
monitored the lease payments and the beach restriction lease payments to the Agency
(this activity is ongoing).
Waterfront Proiect-William Lyon Homes: Sea Cove Residential
• William Lyon Homes developed 106 residential units as
part of the Waterfront Residential Project.
• These 106 townhomes consist of two- and three-story
floor plans ranging from 1,620 to 2,690 square feet.
• These residential units have contributed to the
revitalization efforts of the Downtown by increasing the
n' number of residents in the area. Residents of this
development enjoy the revitalized commercial and
recreational amenities of the area.
• A part of the Waterfront Project, Agency assisted with
infrastructure and provided assistance to Planning by
reviewing the plans for the development.
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 10
Waterfront Proiect-Christopher Homes: Sea Colony at Waterfront Residential
• A 78 townhome project undertaken by Christopher Homes
as part of the Waterfront Residential project was completed
in 2007.
• This townhome project consists of three separate floor
plans ranging from 2,961 to 3,387 square feet.
• This development has contributed to the successful
�I ,Ilkllj� revitalization of the Downtown and is contributing to the
- pedestrian oriented environment of the Downtown as the
residents can walk to the many services provided by
retailers in this portion of the Project Area.
• A part of the Waterfront Project, Agency assisted with
infrastructure and provided assistance to Planning by
reviewing the plans for the development.
The Strand
JIM
7 In
t
• This project consists of a two-block area comprising 3.97 acres on Pacific Coast Highway
between 5th and 6th street. The Agency worked in collaboration with the developer, CIM,
to develop four distinct buildings (hotel, retail, commercial, and restaurant components)
linked by open-air pedestrian walkways. The project was completed in late Spring 2009.
• The project contains the Shorebreak Hotel, a boutique hotel consisting of 157 rooms;
Zimzala, a restaurant featuring authentic coastal cuisine, a public parking garage with 436
spaces; and 110,000 square feet of office and retail space featuring national credit tenants.
• The City Council and Agency adopted a 6th Implementation Agreement for this project in
November 2008.
• Agency participation of $950,000 in assistance will be provided for 25 additional parking
spaces in the parking garage, which will be structured as a loan repaid at 10% interest.
The Parking In Lieu Fund has repaid $500,000 of the $950,000.
• The Agency's financial assistance is limited to tax increment generated from the project
and from tax increment revenue generated within the Project Area.
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Pacte 11
Property Acquisition of 7872 Edinger Avenue (Assessor Parcel Number: 142-081-28)
• The Agency acquired the property at the
,r a southeast corner of Edinger Avenue and
Parkside Lane in January 2009 for$3,431,500.
• The Agency purchased this property from HB
Auto I, LLC to combine this property with the
Agency-owned property that is immediately
�f
adjacent.
• This 22,509 square foot property includes an
8,169 square foot auto retail shop.
• The purchase of this property will create a larger
parcel to facilitate redevelopment opportunities
within the Huntington Center Subarea.
Bella Terra - Phase I
f �f
h
• In 2006, the former Huntington Center Mall was successfully redeveloped into Bella Terra
(Phase 1), a regional destination for restaurants, retail, and entertainment. The project was
purchased by DJM Capital Partners.
• Phase I of Bella Terra consists of approximately 777,000 square feet of retail space.
• The Agency assistance consists of$15 million to be reimbursed to the developer over 20
years from site-generated tax increment(this activity is on-going).
• The Agency's reimbursable costs contributed to the following activities: demolition,
clearance, site preparation, public improvements, utilities &facilities, and acquisition of the
land and easements.
• Community Facility District(CFD)was formed for the public parking structure.
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 12
CURRENT PROJECTS AND PROGRAMS
The following projects and programs highlight the Agency's current efforts to address the goals for
redeveloping the Project Area:
CURRENT PROJECTS
PROJECT GOALS BLIGHT EST. AMOUNT
ADDRESSED ELIMINATED
Beach/Edinger Specific 1 2 6,7 &8 A, B, C, D, E& F Already Funded
Plan
Downtown Specific Plan 1,2,6,7&8 A, B, C, D, E& F Already Funded
Storm Drain Construction 3,4,5&6 F $2.5 Million
$19 Million from
Improvements to public participation payments put
into the
facilities and public 3,4&5 B&F Improvement Program
eninfrastructure t Capital
from the Waterfront
Residential project.
Agency Community 7 A, B, C, D, E&F Agency Staff Oversight
Outreach Provided
Details regarding each of the above stated projects are further provided below:
Beach/Edinger Corridor Specific Plan
!' T a q The Agency is finalizing (anticipated
by the Second Quarter of 2010) the
so p Beach and Edinger Corridors Specific
o F r. Plan, which is being created to
�s 3� produce a more favorable
as s� environment for commercial, office,
industrial, residential, and recreational
development.
a N a
• The Agency anticipates that the Beach and Edinger Corridors Specific Plan will address
the following:
o underutilization of properties;
o deteriorated buildings;
o incompatible land uses that produce economic blight;
o the removal of obsolete structures that produce low lease rates and economic
returns for property owners; and
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 13
o the development of a variety of housing opportunities.
Downtown Specific Plan
r
• The Agency prepared an update to the Downtown Specific Plan and Downtown Parking
Master Plan, which covers the Main-Pier Subarea. The update will encourage new
development and spur revitalization projects.
• The Downtown Specific Plan was adopted on November 2, 2009, but certain aspects of
the plan will be reconsidered by the City Council on January 19, 2010.
• Once approved by the California Coastal Commission (anticipated in Third Quarter 2011)
the Downtown Specific Plan will help lay the foundation for the entitlement, re-design, and
development of future projects that will address:
o underutilization of properties;
o deteriorated buildings;
o incompatible land uses that produce economic blight;
o the removal of obsolete structures that produce low lease rates and economic
returns for property owners; and
o a variety of housing opportunities.
Storm Drain Construction
• Construction of a $2.5 million parallel storm drain at the intersection of Slater and Parkside
was funded by the Agency. The project will address capacity issues within the existing
drainage system the serves the Oakview Subarea.
Huntington Beach Redevelopment Project
2009 — 2014 Implementation Plan Pa-ge 14
Improvements to Public Facilities and Public Infrastructure
d
_ s
• Finalize the seismic retrofit and refurbishing of City Hall. This includes the provision of
more efficient light and improvements to heating, ventilation and air conditioning systems
at City Hall.
• Main Street Library improvements to meet the requirements of the Americans with
Disabilities Act.
• Review of parking in the downtown area is facilitated by the Downtown Parking Master
Plan.
• Construct concrete, asphalt and public improvements in the Oakview neighborhood.
• Construction of visitor kiosk and three permanent pier concessionaire buildings within the
Main-Pier Subarea.
• Building improvements including the Art Center, Main Street Library, fire stations to meet
ADA standards.
• Upgrade elevators and installation of security cameras in the Main Promenade parking
structure.
• The undergrounding of utilities along Pacific Coast Highway in conjunction with Southern
California Edison (SCE), CalTrans, and California State Beaches Department is in
progress. Agency staff is monitoring project progress and informing developers within the
Main-Pier Subarea of positive upgrades to utilities for the area.
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 15
Agency Community Outreach
1
• Downtown Image Ad Hoc Committee was established by the City Council to solicit input
from the residential and business communities of the City regarding methods for improving
the environment of the Downtown on weekends, evenings and holidays. The Committee's
findings were presented to City Council on August 17, 2009. Staff will begin implementing
the recommendations in 2010.
• The Beach and Edinger Corridors Specific Plan community meetings were conducted from
2007 through 2009. Final presentations of the results of the findings from the Study will be
presented at public hearings to finalize the Specific Plan.
• The Downtown Specific Plan and Downtown Parking Master Plan conducted four
community meetings from 2007 thought 2009.
• Surf City Nights, a weekly street fair attracts shoppers and increases foot traffic in
Downtown and further the development of the Downtown as a destination for shopping and
entertainment. This program will be on-going during this five year period.
• Redevelopment Plan Amendment community information meetings are expected to be
conducted in the Second Quarter of 2010 to discuss the proposed amendment to add
territory to the Project Area. This outreach effort follows after the Shopping Center Mayor's
Forum was conducted in 2008 to ascertain the desires of the community to address
blighting conditions (determined through an initial assessment by Agency staff) in shopping
centers throughout the City.
• Community involvement activities are anticipated to be accomplished every year during the
five-year period of this Implementation Plan.
• The Agency has conducted numerous outreach efforts to promote local job opportunities
such as co-hosting business seminars and assisting with the Small Business Assistance
Center.
• The projects anticipated within the Project Area will produce construction jobs and on-
going employment opportunities after development is completed at each of the project
sites.
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Page 16
FUTURE PROJECTS AND PROGRAMS
The following projects and programs highlight the Agency's future efforts to address the goals for
redeveloping the Project Area:
FUTURE PROJECTS
GOALS BLIGHT n.�
'PROJECT ' ' ":EST;'AMOUNT
;ADDRESSED ' sELIMIN/ATEO:- x;r s .
Redevelopment Plan Amendment 1,2,6,7&8 A,B, C, D, E&F $200,000
Undergrounding of Utilities 1,3,5&6 F Agency Staff
Oversight Provided
Waterfront Project-Parcel C 1,2,3,6, 10&11 F Agency Staff
Oversight Provided
Bella Terra-Phase II 1, 2,3,6,8, 10, 11 & A, D&E Agency Staff
12 Oversight Provided
Atlanta/Beach Center 1, 2,3,6,8, 10&11 A, B, D&E To Be Determined
Edinger Hotel 1,2, 3,6,8, 10&11 F To Be Determined
Pacific City-31-Acre Site 1, 2,3,6,182, 10, 11 & C&F $5.5 Million
Agency Property Acquisition 8,9,10, 11 &12 A,B, C, D, E&F To Be Determined
Business Retention/Property Upgrades 8,9,10&11 A, B, D&E To Be Determined
Funded through the
Public Facilities Improvements 3, 5&6 F Agency's Capital
Improvement Program
Details regarding each of the above stated projects are further provided below:
Redevelopment Plan Amendment
• The Redevelopment Plan Amendment is a study of commercial parcels including shopping
centers and strip malls throughout the City to address physical and economic blighting
conditions to remediate the long term effects of neglected property upgrades that have
impacted the economic viability of these shopping centers.
• The Redevelopment Plan Amendment process is anticipated to be completed in late
2010/11.
• Agency staff estimates that bids for redevelopment, mapping and environmental consulting
services will total approximately $200,000 with approximately $120,000 expended in
2009/10 and $80,000 expended in fiscal year 2010/11 toward the work conducted to
accomplish the Redevelopment Plan Amendment.
• The goal is to add commercial properties that exhibit conditions of physical and
economic blight to the Project Area so that the economic tools available through
redevelopment can be used to eliminate these conditions.
Huntington Beach Redevelopment Project
2009 — 2014 Implementation Plan Page 17
Underarounding of Utilities
• The new utility infrastructure and facilities will provide upgraded utility components that will
serve new and existing property owners.
• Upgrades are anticipated to be accomplished every year during the five-year period of this
Implementation Plan.
• Agency Staff will work with Public Works to assist in the prioritization of projects.
Waterfront Project (Parcel C)
• In October 2008 the Agency approved the 3rd Implementation Agreement (Disposition
Development Agreement), which provides for the phased development of Parcel C in the
Waterfront Project.
• A third hotel comprising 300 rooms, with a spa, fitness facility and lounge/bar for guests is
anticipated.
• The project will add needed public infrastructure upgrades to off-site improvements, create
additional hospitality industry and construction jobs, and increase property tax, sales tax
and transient occupancy tax revenue to the Agency and City.
• The Agency will receive a payment of $250,000 from the Developer each time an
extension to the Disposition and Development Agreement is granted. This payment will
compensate for the estimated loss in Transient Occupancy Tax that the City would have
received as a result of the early development of the third hotel.
Bella Terra - Phase II /Village at Bella Terra
• This project includes the redevelopment of the abandoned Montgomery Wards and
Mervyn's buildings and the development of a mixed use project including 156,000 square
feet of retail, commercial and 503-700 market rate and affordable housing units.
• Review of Phase II plans and proposed development projects are anticipated annually
during the five-year period of this Implementation Plan.
• The project will improve pedestrian access to Bella Terra through improved public
infrastructure in the western and northern portions of the Bella Terra site; create many job
opportunities during construction and operation of the development, and increase sales tax
and property tax revenue to the City and Agency.
• Staff is working with DJM to create an Owner Participation Agreement to ensure final
construction of the project.
Huntington Beach Redevelopment Project
2009 — 2014 Implementation Plan Page 16
Atlanta/Beach Center
• The Center is an underperforming older shopping center that requires significant
rehabilitation or complete redevelopment.
• The Agency is collaborating with multiple property owners to facilitate the rehabilitation of
the building exteriors in order to revitalize the Center.
• The rehabilitation of the Center will remediate physical blighting conditions on the property,
increase sales tax revenue to the City and create jobs for residents.
• The City may abandon the frontage road to maximize development opportunities.
Edinger Hotel
The Agency acquired the adjacent site (7872 Edinger
Avenue),which consists of approximately 18,000 square
I
feet and an 8,169 square foot auto retail shop to combine
with the adjacent Agency-Owned properties, which
comprise approximately 56,700 square feet of vacant land
Assessor Parcel Numbers: 142-081-06, 142-081-09, 142-
081-10, 142-081-11, 142-081-12).
• The Agency prepared a Request for Proposals for
the development of a hotel at the southeast corner
of Edinger Avenue and Parkside Lane.
• This hotel site could achieve a high quality,
nationally branded hotel consisting of approximately
120 to 150 rooms with amenities that would make
the hotel an attractive lodging option in the central
region of the County of Orange.
Pacific Citv
The proposed project is a 31-acre mixed use project that
includes a 250 guest room hotel with a restaurant/bar, spa
and 11,000 square feet of meeting space; 516 residential
'i o ` housing units; 48,900 square feet of restaurant space;
30,000 square feet of office space; and 161,000 square
feet of retail space.
e1' A Community Facilities District may be structured
to provide the funding for public improvements, a
parking structure and the Regional Urban Runoff
Treatment System for the residential portion of the
project.
• The Agency proposes to fund $5.5 million worth of public improvements through tax
increment revenue generated from the project over a 20-year period.
• Pacific City is expected to generate tax increment based on $850 million of assessed
project value, a large portion of which will be utilized to fund additional blight remediation
projects in the Project Area.
Huntington Beach Redevelopment Project
2009 — 2014 Implementation Plan Page 19
• The project will improve public infrastructure in the Main-Pier Subarea, create job
opportunities during construction and operation of the development, and increase sales tax
and transient occupancy tax revenue to the City.
Agency Property Acquisition
• The Agency will consider acquiring blighted, underutilized, and incompatible properties
within the Project Area.
• Acquisition activities will be focused on assisting in the revitalization of the Project Area by
addressing blighting conditions such as unsafe and unhealthy building conditions,
properties under multiple ownership that affect the economic viability of the property or
properties that are not economically viable because of conditions such as hazardous
material remediation.
• All acquisition will focus on the future development of improvements that are consistent
with the General Plan and the goals of the Redevelopment Plan for the Project Area.
Business Retention/Property Upgrades
"Enhancing Economic Development" is also
described as business development which supports
the financial strategic goal to Fund Capital
Improvements and Enhance Financial Reserves.
Without a strong economic base of business to I ,,Iof
provide jobs and the delivery of goods and services,
the local economy may suffer as a result of • .
reductions in its sales and property tax bases. ,
Having a highly skilled workforce able to live and
work in the community offers the opportunity for the
City to become self-sustainable. By using the goal
of "Improving Communication," the business
development activities engage the business
community through the following activities: ik-
• Scheduling on-site business visits by the j
Mayor, City Administrator, and Director of
Economic Development to offer technical
assistance and market the City for
commercial and industrial retention and
expansion;
• Co-sponsoring the annual Economic
Conference with the Chamber of Commerce;
• Providing ombudsman services for
businesses seeking assistance in complying
with City requirements and regulations;
• Offering technical assistance for existing and start-up businesses; and
• Developing and implementing educational programs and incentives designed to
encourage residents to support essential local services by shopping in Huntington
Beach.
Huntington Beach Redevelopment Project
2009 - 2014 ImRiementation Plan Page 20
Public Facilities Improvements
• Street and alley improvements in the Main-Pier Subareas.
• Street light replacement in the Main-Pier Subareas.
• Construction of beach restrooms.
• Improvement to the storm drains to address capacity issues within the existing drainage.
system serving the Oakview Subarea. The project to include construction of new parallel
storm drain lines, installing manholes, junction and transition structures, and enclosed
storm drain box culvert.
AGENCY FINANCIAL STATUS REPORT
The Agency adopts its budget on an annual basis; as such actual revenues and expenditures may
differ from those forecasts presented in the Implementation Plan and are therefore subject to
change. Projections of revenues and expenditures contained within this Implementation Plan
were based upon the assumptions delineated below:
Cash Flow General Assumptions
1. Resources available to the Agency include net tax increment revenues, Agency
identified miscellaneous revenues and interest income.
2. Current Debt Service Obligations - includes the annual debt service for the 1999 and
2002 Tax Allocation Bonds, as well as participation obligations and loan repayments
from Agency-identified project activities.
3. Administration and Other Requirements - Administrative costs and other expenditures
related to Agency operations were based upon current operational expenses.
4. State Budget Take Away - The California State Legislature and Governor approved
budget bill ABX4-26 as part of the 2009 State budget which authorizes a $2.05 billion
take from local redevelopment funds. The Project Area Supplemental Educational
Revenue Augmentation Fund (SERAF) takeaway is estimated at $5,374,000 for FY
2009-10 and $1,106,000 for FY 2010-11. In order to make the payment, the
Redevelopment Agency has been allowed to suspend all of its required 20% allocation
to its low and moderate income housing fund. The 20% portion of the payment will be
repaid in equal payments by June 30, 2015.
5. City General Fund Repayment - The Agency assumes that the outstanding
indebtedness to the City General Fund will be repaid annually with a repayment
schedule that increases approximately 2% annually.
6. Discretionary Expenditures - To the extent future tax increment revenue resources
continue to be allocated to the Agency and exceed existing debt service, contractual
obligations, projects and administrative costs, the cash flow projection assumes that the
Agency will exercise its discretion in funding other future projects, programs or activities
of benefit to the Project Area through FY 2013-14.
Huntington Beach Redevelopment Project
2009 —2014 ImRiementation Plan Page 21
Tax Increment Revenue General Assumptions
1. The current FY 2008-09 tax increment revenue, as disbursed by the Orange County
Auditor-Controller, provide the basis from which future year tax increment is determined.
2. Future real property (land and improvement) values annually increase as a result of an
annual 2% inflation factor (reflecting assumed Proposition 13 growth) commencing in FY
2010-11.
3. The housing set aside of 20% of annual tax increment is reflected pursuant to the
provisions of Health and Safety Code Section 33334.2.
4. Tax sharing obligations and triggered statutory pass through payments, pursuant to the
provisions of Health and Safety Code Section 33607.7, are incorporated in the tax
increment revenue projections, as applicable.
Based upon the assumptions listed above, the table below forecasts the Agency budget for fiscal
years 2009-10 through 2013-14.
2009-10 2010-11 2011-12 2012-13 2013-14
General Tax Increment Funds
Beginning Cash Balance 3,914,000 859,000 366,000 739,000 1,736,000
Revenue
Tax Increment Revenue 17,761,000 18,699,000 20,332,000 22,536,000 23,997,000
Other Interest and
Revenue 1,024,000 963,000 969,000 751,000 872,000
18,785,000 19,662,000 21,301,000 23,287,000 24,869,000
Expenditures/Fees
SERAF(Supplemental Educational Revenue
Augmentation Fund)State Budget Takeaway 5,374,000 1,106,000
Loan and Repayment-Housing Fund -3,552,000 - 888,000 888,000 888,000
Housing Set Aside 3,740,000 4,067,000 4,508,000 4,800,000
Tax Sharing Agreements
and
Statutory Pass Through Payments
Annual Payments 2,213,000 2,407,000 2,793,000 3,348,000 3,648,000
Debt Repayment
1999 Tax Allocation Bonds 749,000 747,000 748,000 743,000 747,000
2002 Tax Allocation Bonds 1,622,000 1,622,000 1,636,000 1,641,000 1,638,000
Agency Administration Expenses 2,935,000 2,431,000 2,515,000 2,604,000 2,641,000
Other Debt Expenses 3,504,000 3,536,000 3,567,000 3,597,000 3,630,000
Discretionary Expenditures 134,000 57,000 115,000 271,000 517,000
Capital Expenditures 4,440,000 - - - -
City General Fund Repayments 4,421,000 4,509,000 4,599,000 4,690,000 4,783,000
Total Expenditures 21,840,000 20,155,000 20,928,000 22,290,000 23,292,000
Ending Cash Balance 859,000 366,000 739,000 1,736,000 3,313,000
Huntington Beach Redevelopment Project
2009 - 2014 Implementation Plan Pane 22
AFFORDABLE HOUSING PLAN
The Agency has completed an Affordable Housing Component AB 1290 Implementation Plan
January 2010-December 2014 inclusive of the Affordable Housing Component required of
Implementation Plans. The Affordable Housing Component will be adopted concurrently with this
Implementation Plan. The Affordable Housing Component identifies a funding plan and activities
related to the production of affordable housing for persons of low and moderate income for the
Huntington Beach Redevelopment Project and the Southeast Coastal Project Area.
Pacific Court
I
Before After
Huntington Beach Redevelopment Project
2009 - 2014 lamcleomentati®n Plan Page 23
CONCLUSION
Throughout the last five-year period the Agency has focused its efforts on the elimination of
economic and physical blight, improving the economic vitality, increasing the economic base,
and providing the community with adequate retail and service opportunities within the Project
Area. In order to successfully accomplish these efforts the Agency has been working closely
with the private sector.
The efforts of the Agency resulted in the development of successful public-private partnerships
to revitalize the Downtown, the City's beach front areas, as well as the former Huntington Beach
Mall (now known as Bella Terra). Bella Terra represents a substantial revitalization project that
serves as an entry to the City and created a regional destination for shopping, dining and
entertainment. A second phase of Bella Terra will provide a number of different land uses and
will link the development to the Edinger and Beach Boulevard Corridor.
The Agency plans to achieve the goals set forth in this Implementation Plan by investing in
public infrastructure projects, such as the undergrounding of utilities along major corridors which
will provide an incentive for investment and new development. The Agency will participate in
projects that focus on blight elimination and economic revitalization on parcels that remain
blighted within the Project Area.
Five Year Implementation Plan (2007-08 to 2011-12)
Southeast Coastal Redevelopment Project
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December 17, 2007
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ACKNOWLEDGEMENTS
Redevelopment Agency Board
Chair
DEBBIE COOK
Vice-Chair
KEITH BOHR
Members
JOE CARCHIO
GIL COERPER
CATHY GREEN
DON HANSEN
JILL HARDY
PENNY CULBRETH-GRAFT
Executive Director
STANLEY SMALEWITZ
Economic Development Director
Kellee Fritzal
Deputy Economic Development Director
Doris Powell
Assistant Project Manager
Southeast Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 1
INTRODUCTION
This Five-Year Implementation Plan ("Implementation Plan" or "Plan") describes specific goals
and objectives of the Huntington Beach Redevelopment Agency ("Agency"), specific proposed
programs including potential projects, estimated expenditures proposed to be made during the
next five years, and an explanation of how the goals and objectives, programs, and
expenditures will eliminate blight within the Southeast Coastal Redevelopment Project Area
("Project Area"). Pursuant to Section 33490(a) of the Health and Safety Code, California
Community Redevelopment Law ("Law"), all redevelopment plans adopted on or after January
1, 1994 must include an implementation plan that is to be updated every five years.
This Implementation Plan conforms to the requirements of Section 33490 of the Law and
replaces the previous Five-Year Implementation Plan, which covered fiscal years 2002-03
through 2006-07. This Implementation Plan is the second five year plan completed by the
Agency and must be adopted before December 31, 2007. Amendments to the Plan may be
made at this time, or any time after a noticed public hearing.
The Project Area was established to upgrade and revitalize a 172-acre area in southeast
Huntington Beach. The Project Area includes the AES Power Generating Facility, the Ascon
landfill site, a fuel oil storage facility (tank farm), and other industrial as well as open space
uses.
The Project Area time limitations are as follows:
Adopting Ordinance Adoption Date Termination Date
Southeast Coastal Ord. 3561 June 17, 2002 June 17, 2032
Eminent Domain Authority Time frame to Incur Indebtedness
June 17, 2014 July 17, 2022
Bonded Indebtedness Amount Time frame to Incur Indebtedness
$50 million outstanding at any time June 17, 2047
The Project Area is generally located north of Pacific Coast Highway, south of Hamilton
Avenue, east of Newland Street, and west of Magnolia Street. A map depicting the
boundaries of the Project Area is presented in Exhibit A.
Southeast Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 2
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PROJECT AREA BACKGROUND
Southeast Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 3
The City of Huntington Beach ("City") has focused on the revitalization and proactive planning
of the Southeast section of the City. The City Council created the Southeast Area Committee
("SAC") in December 2000, which consists of a three member subcommittee of the City
Council. The SAC provides a forum for citizens and City employees to discuss the issues
and projects to improve the southeast area of the City. The SAC was instrumental in the
formation of the Southeast Coastal Redevelopment Plan and continues to provide guidance
on issues affecting the Project Area.
The Agency adopted the Redevelopment Plan for the Project Area to address the
environmental impacts of the closed Ascon landfill, and assist in creating a more efficient,
less visually obtrusive AES Power Generating Facility or guide the future use of the site if the
plant is no longer needed.
ASCON LANDFILL SITE
The City has been pursuing environmental remediation and reuse of the contaminated Ascon
landfill site ("Ascon landfill" or"Landfill"), which is located at the southwest corner of Magnolia
Street and Hamilton Avenue. This 38-acre site operated as an active landfill for 46 years and
suffers from severe contamination. Contamination on the site can be attributed to both oil
drilling operations and landfill operations. The Department of Toxic Substances Control
("DTSC") has identified drilling muds, wastewater brines, chromic acid, sulfuric acid,
aluminum slag, fuel oils, and styrene at the Landfill. Remediating the site is very costly and
some of the parties responsible for the contamination issues have refused to participate in
the remediation planning and implementation. However, the site's environmental
conditions are being addressed by several other parties under agreements with the
California Department of Toxic Substances Control.
AES Huntington Beach Generating Station
The AES Generating Station was another major reason the Agency adopted the
Redevelopment Plan for the Project Area. The AES Power Generating Facility("AES Facility"
or "AES") consists of 12-acres at 21730 Newland Street near the southeast corner of
Newland Street and Pacific Coast Highway. The Facility is only approximately 600 feet from
the Pacific Ocean and represents a major source of air pollution in the Project Area and a
visual impediment in the Project Area. Despite approximately $150 million in necessary
improvements to expand the Facility's capacity in 2001, the Facility is inefficient and
continues to create significant air pollution.
The environmental issues present on these two properties were the main reason for adopting
the Project Area. These properties have also had a significant negative impact on the
assessed values for single family homes, commercial and industrial properties within the
immediate vicinity. The impact of these properties is especially evident when the assessed
values of similar coastal properties are compared to the properties immediately surrounding
the Landfill and the AES Facility.
PROJECT AREA GOALS AND OBJECTIVES
This Implementation Plan is created to eliminate physical and economic blight, create
affordable housing, and address environmental concerns in the Project Area. The Project
Area's Redevelopment Plan identified the following goals that would remediate blight in the
Project Area once accomplished:
So uthe2st Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 4
GOAL 1:
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.
GOAL 2:
To advance the cleanup of environmentally contaminated properties.
GOAL 3:
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.
GOAL 4:
To facilitate the protection and restoration of environmentally sensitive wetlands in connection
with proposed redevelopment activities.
GOAL 5:
To permit the Agency to assist with park and trail improvements if any Project Area properties
are designated for such uses.
GOAL 6:
Undertake public improvements in, and of benefit to, the project area, such as streets, flood
control facilities, and other public facilities.
GOAL 7:
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 Merged Redevelopment Project Area.
GOAL 8:
To restrict the use of eminent domain to any non-fee ownership interests such as oil and gas
leases.
GOAL 9:
Eliminating blight and environmental deficiencies in the Project Area.
GOAL 10:
Assembling of land into parcels suitable for modern, integrated development with improved
pedestrian and vehicular circulation in the Project Area.
GOAL 11:
Replanning, redesigning, and developing properties, which are stagnant or improperly
utilized.
GOAL 12:
Increasing, improving, and preserving the community's supply of housing affordable to very
low, low and moderate income households.
Southeast Coastal Project Area
Five Year Umplementation Piave (2007-08 to 2011-12) 5
The Agency has implemented projects and activities to eliminate blight in the Project Area and
address these goals. The following section will detail specific programs, activities and projects
that the Agency has implemented; and that the Agency proposes to implement during this
Implementation Plan period (2007-08 to 2011-12).
SPECIFIC PROGRAMS AND POTENTIAL PROJECTS
The Agency documented blighting conditions in 2002 with the adoption of the Report to
Council, which accompanied the Redevelopment Plan for the Project Area. The physical and
economic blighting conditions include the following:
® Unsafe/Unhealthy Buildings: Though operation of the AES Facility has continued to be
permitted due to power shortages, excessively high emissions at the AES generating
facility pose health risks to surrounding residents and nearby habitat.
® Factors Hindering the Economically Viable Use of Lots: Two main focus areas for
redevelopment that are representative of this blighting condition are the AES Facility
and the Ascon landfill.
o Due to the energy shortage for the past decade, the AES Facility 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
until 2017,
o The Ascon Landfill Site cannot be fully redeveloped until environmental
remediation occurs. A Remedial Action Plan is being developed and will be
approved by California Department of Toxic Substances Control.
• Incompatible Uses: The Ascon landfill and AES Facility have a negative effect on
residential resale values in the immediate area.
• Impaired Investments: Due to the presence of the Ascon landfill properties immediately
surrounding the Landfill have suffered from lower property values.
The Agency developed twelve (12) goals to address these blighting conditions. The Agency
has been extremely active in remedying blighting conditions within the Project Area during the
previous Five Year Implementation Plan; however, limited tax increment revenue generated
within the Project Area has impacted the full implementation of such goals.
Goal 1: 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.
• The Agency is working with AES to ensure that landscaping and painting
upgrades to the site are accomplished.
• The landscaping and painting upgrades are expected to be completed by late
2008.
• Agency financial assistance is not expected for this item.
Southeast CO2St21 Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 6
Goal 2: To advance the cleanup of environmentally contaminated properties.
Ascon Landfill Site:
• The Landfill is listed on the State Superfund list of toxic/hazardous waste sites;
however, no State or Federal funds are presently available for environmental
remediation of the Landfill. The Agency is working with DTSC and the seven (7)
responsible parties to see to the successful implementation of the consent order
from January, 2003. This agreement presented a completion schedule for
investigation of environmental hazards at the Landfill and remediation.
• The remediation of the Landfill is expected to be a Partial Source Removal with a
Protective Cap. The construction time for the recommended alternative
remedial plan is reported in the Revised Feasibility Study approved by the
California Department of Toxic Substances Control in the third quarter of 2007
to take between 27 and 42 months. Remediation work cannot begin until after a
Remediation Action Plan and an Environmental Impact Report have been
prepared. The departments of Public Works, Fire and Planning are currently
reviewing the Feasibility Study for the site. A community meeting will be
conducted to present the selected remediation alternative. It is unknown when
the cleanup process can begin; however, it is expected that environmental
remediation activities will occur throughout the entire five (5) year period of this
Implementation Plan.
• Agency financial assistance is not expected for this item.
Goal 3: 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.
• The Agency is actively working with Edison to ensure the tanks are sold to a third
party operator, and the Agency is also actively coordinating with the Public
Utilities Commission to request low usage levels and reasonable controls are
established before the plant is transferred to a new operator. The City's
Planning Department has requested that certain requirements be in place before
Edison demolishes the tanks. Edison is contesting the requirements that are
being applied to its demolition permits. The Agency is also assisting with the
issues concerning easements for this property.
• The demolition of the tanks is expected to occur over a 12 month timeframe;
however, Edison is contesting the City's requirements for the demolition permit.
Completion of demolition and clearing of the site is expected in 2009.
• Agency financial assistance is not expected for this item.
Goal 4: To facilitate the protection and restoration of environmentally sensitive
wetlands in connection with proposed redevelopment activities.
• Wetlands & Wildlife Care Center of Orange County received a $270,000 grant to
assist with the construction of a block wall and the landscaped setback area
required for the renovation of its facility. The Conservancy expanded its facility
for a state-of-the-art wildlife treatment hospital; a recovery ward; flight cages; an
education facility; and exhibits. The Agency will continue to work cooperatively
with the Wetlands &Wildlife Care Center.
Southeast Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 7
• The construction of the wall and landscaping has beautified the Pacific Coast
Highway frontage and was finished in October 2006.
• Agency assistance to this project was $270,000. No additional Agency financial
assistance is anticipated for this item.
Goal 5: To permit the Agency to assist with park and trail improvements if any
Project Area properties are designated for such uses.
• Orange Coast River Park represents an opportunity for the City to link its parks
through a system of trails to other parks and trails throughout the County of
Orange.
• The anticipated timeline for this item will be ongoing through the five years of this
Implementation Plan (2007 to 2011).
• An estimate for Agency participation has not been determined.
Goal 6: Undertake public improvements in, and of benefit to, the project area, such
as streets, flood control facilities, and other public facilities.
• The Agency worked cooperatively with Public Works staff to design and bid a
sidewalk and pedestrian lighting project on both sides of Magnolia Street. This
project will improve the pedestrian environment for Magnolia. The project
includes construction of curbs & gutters, sidewalks, and street lighting along
Magnolia Street from PCH to the Huntington Beach Channel.
• Design was completed in Fiscal Year 05/06; however, construction was delayed
due to environmental review process.
• An estimate for this project is $560,000.
• Project is expected to be completed by 2009.
Goal 7: 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 Merged Redevelopment Project Area.
• Agency administrators and City Finance staff have ensured the separate
accounting of revenue and expenditures for the Project Area.
Goal 8: To restrict the use of eminent domain to any non-fee ownership interests
such as oil and gas leases.
• The Agency's eminent domain policy will be adhered to; and recently, pursuant to
Senate Bill 53, the Agency adopted an Ordinance amending the Redevelopment
Plan for the Project Area by restating the Agency's policy on the use of eminent
domain and the restriction to non-fee ownership interests only.
Goal 9: Eliminating blight and environmental deficiencies in the Project Area.
• The Agency is presently working on projects and programs that will address the
blight in the Project Area, specifically:
o Unsafe/Unhealthy Buildings,
o Factors Hindering the Economically Viable Use of Lots,
o Incompatible Uses, and
Southeast Coastal Project area
Five Year Implementation Plan (2007-08 to 2011-12) 8
o Impaired Investments.
Goal10: Assembling of land into parcels suitable for modern, integrated
development with improved pedestrian and vehicular circulation in the Project Area.
• The Agency will continue to explore opportunities for acquisition of land that can
be assembled to create efficient development and will assist with the circulation
of residents and visitors through the Project Area.
Goal 11: Replanning, redesigning, and developing properties, which are stagnant or
improperly utilized.
• The Agency will continue addressing development issues for properties that
exhibit impaired investments and are experiencing stagnant property values,
such as the Ascon Landfill, after it is remediated.
Goal 12: Increasing, improving, and preserving the community's supply of housing
affordable to very low, low and moderate income households.
o The Agency will continue contributing 20% of the Project Area's tax increment
revenue to the low to moderate income housing fund for the Agency. No
residential uses are located in the Project Area; however based on a finding of
benefit the Agency can distribute the low to moderate housing set aside revenue
from the Project Area throughout the City.
AGENCY FINANCIAL_ STATUS REPORT
These tax increment revenue projections are conservatively based on a 2% Projected Growth
Rate. The "Remaining Balance for Agency Administration and Projects" excludes statutory
pass through payments to affected taxing entities. The Agency is projected to receive
$202,980 in gross tax increment in Fiscal Year 2007-08. After disbursements to taxing entities
and the 20% housing set-aside deposit, the Agency is projected to retain $121,788 in net tax
increment which may be utilized to address the Agency's stated redevelopment goals through
various projects and programs identified in this Implementation Plan.
The following table presents a projection of tax increment revenue for the Project Area:
SOUTHEAST COASTAL REDEVELOPMENT PROJECT AREA
PROJECTED TAX INCREMENT REVENUE
Projected Gross Low&Mod. Tax Increment I Total Remaining
Fiscal Growth Total Tax Housing Excluding 33607.5 Balance for
Years Rate Assessed Increment Set-Aside Low/Mod. Statutory Agency Admin.
Value 1% 20% Set Aside Payments &Projects
Base Year 2001-02 103,733,755
2007 2008 2% 124,031,724 202,980 40,596 162,384 40,596 121,788
2008 2009 2% 124,355,042 206,213 41,243 164,970 41,243 123,728
2009 2010 2% 124,684,826 209,511 41,902 167,609 41,902 125,706
2010 2011 2% 125,021,205 212,875 42,575 170,300 42,575 127,725
2011 - 2012 2% 125,364,313 216,306 43,261 173,044 43,261 129,783
Southeast Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 9
The following table presents projected revenue and expenditures for the five (5) year period
covering this Implementation Plan. The Agency adopts its budget on an annual basis; as
such, actual revenues and expenditures may differ from those forecasts presented in this
Implementation Plan and are therefore subject to change.
• Future tax increment revenues were projected based on a 2% increase in the secured
assessed value in the Project Area.
• Interest earnings were estimated based on net revenues and beginning fund balances.
• Taxing agency payments from the non-housing fund have been calculated pursuant to
Section 33607.5 of the Law.
• Capital project costs were obtained from project estimates.
PROJECTED REVENUE AND EXPENDITURES Projected
SOUTHEAST COASTAL PROJECT AREA Actual Budgeted Projected Projected Projected Projected 5 Year
2006-07 2007-08 2008-09 2009-10 2010-11 2011.12 Total
Beginning Cash Balance(including reserves) $612,419 $503,205 $1,112,586 $1,174,154 $1,808,154 $2,454,833
Revenues
Tax Increment Revenue(100%of Gross) $166,478 $169,808 $173,204 $176,668 $180,201 $183,805 $883,685
Tax Increment Transfer Out from Debt Service 32,172 $32,815 $33,472 $34,141 $34,824 $35,520 170,773
Interest Income 23,094 $23,556 1 $24,027 $24,508 $24,998 $25,498 1 122,586
TOTAL $221,744 $226,179 $230,702 $235,317 $240,623 $244,823 $1,177,044
Equity Beginning $493,590 $503,462 $513,531 $523,802 $534,278 $544,963 2,620,035
TOTAL AVAILABLE FUNDS $1,327,753 $1,232,846 $1,856,819 $1,933,272 $2,582,454 $3,244,620 $10,850,011
Operations&Debt Service Costs
Debt Service&Trustee Fees $474,885 $31,428 $32,057 $32,698 $33,352 $34,019 $163,553
Taxing Agency Pass Through Payments 31,427 40,596 $41,408 $42,236 $43,081 $43,942 211,263
Administration,Professional Services 48,236 48,236 1 $49,201 $50,185 1 $51,188 $52,212 251,022
TOTAL $554,548 $120,260 $122,665 $125,119 $127,621 $130,173 $625,838
FUNDS AVAILABLE FOR PROJECTS $773,205 $1,112,586 $1,734,154 $1,808,154 $2,454,833 $3,114,447 $10,224,173
Projects&Programs Costs
Capital Improvement Project(Wildlife 270,000 - 560,000 - - - 560,000
Conserv.&Magnolia Street Improvements)
TOTAL $270,000 $0 $560,000 $0 $0 $0 $560,000
TOTAL COSTS $824,548 $120,260 $682,665 $125,119 $127,621 $130,173 $1,185,838
FUND BALANCE SURPLUS/(SHORTFALL) $3,114,447 $9,664,173
Ending Cash Balance $503,205 $1,112,586 $1,174,154 $1,808,154 $2,454,833 $3,114,447 $9,664,173
AFFORDABLE HOUSING PLAN
The Affordable Housing Plan requirement of this Implementation Plan is provided in the
Affordable Housing Strategy that aggregates the affordable housing funds for both the
Southeast Coastal Project Area and the Huntington Beach Merged Project Area. The Housing
Component for the 2007-08 to 2011-12 Five-Year Implementation Plan is covered by the
Affordable Housing Strategy.
Administration of the Implementation Plan
A new Implementation Plan will be produced every five years either in conjunction with the
housing element cycle or the implementation plan cycle.
Southeast coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 10
Implementation Plan Adoption Process
Each Implementation Plan must be presented and adopted at a duly noticed public hearing
of the Agency. Notice of the public hearing must be conducted pursuant to this Section
33490 of the Law. The Notice must be published pursuant to Section 6063 of the
Government Code, mailed at least three weeks in advance to all persons and agencies that
have requested notice, and posted in at least four permanent places within the Project Area
for a period of three weeks. Publication, mailing, and posting shall be completed not less
than 10 days prior to the date set for hearing. The Agency may amend the Implementation
Plan at any time after conducting a public hearing on the proposed amendment.
Mid-Term Implementation Plan Review Process
At least once within the five-year term of the Implementation Plan, the Agency must conduct
a public hearing and hear testimony of all interested parties for the purpose of reviewing the
redevelopment plan and the corresponding implementation for each redevelopment project.
This hearing must take place no earlier than two years and no later than three years after
the adoption of the Implementation Plan.
Res. No. 387
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF HUNTINGTON BEACH )
I, JOAN FLYNN, 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 special meeting of said Redevelopment
Agency held on January 28, 2011 and that it was so adopted by the
following vote:
AYES: Shaw, Harper, Carchio, Bohr, Dwyer, Boardman
NOES: None
ABSENT: Hansen
ABSTAIN: None
Cle of the Redevelopmen Agency
of the City of Huntington Beach, CA