HomeMy WebLinkAboutCity of Huntington Beach Redevelopment Agency - 2011-01-28/:;1;()1e-7Z
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Council Meeting Date: 1/28/2011
Department ID Number: ED 11-06
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPIVI ENT AGENCY ACTION
SUBMITTED TO: Honorable Mayor/Chair and City Council/Redevelopment Agency
Members
SUBMITTED BY: Fred A. Wilson, City Manager/Executive Director
PREPARED BY: Stanley Smalewitz, Director of Economic Development/Deputy
Executive Director
Lori Ann Farrell, Director of Finance
SUBJECT: Approve an Implementation Agreement To The Cooperation Agreement
between the City of Huntington Beach and the City of Huntington Beach
Redevelopment Agency For Payment of Costs Associated with Certain
Redevelopment Funded Capital Improvements
1 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
The Redevelopment Agency of the City of Huntington Beach incurs debt that allows it to
receive tax increment revenue in accordance with California Community Redevelopment
Law. It is recommended that the City Council/Redevelopment Board approve a revised
Cooperation Agreement, which includes a Promissory Note memorializing indebtedness
previously incurred by the Agency and owing to the City from a series of loans made from the
City to the Agency from 1982 to present.
Funding Source: Debt will be repaid through tax increment revenue.
Recommended Action: Motion to:
A. Approve an Implementation Agreeement to the Cooperation Agreement between the City
of Huntington Beach and the City of Huntington Beach Redevelopment Agency for
payment of costs associated with certain Redevelopment Funded Capital Improvements;
and
B. Authorize the Mayor/Agency Chair, City Manager/Executive Director and City/Agency
Clerk to execute all related documents.
REQUEST FOR COUNCILIREDEVELOPMENT AGENCY COUNCIL ACTION
MEETING DATE: 1/28/2011 DEPARTMENT ID NUMBER: ED 11-06
Alternative Action(s):
Do not approve the Implementation Agreement and provide direction to staff.
AnalVsis:
Historically, the City has advanced certain amounts to the Redevelopment Agency to assist
in funding administrative and other expenses necessary for the implementation of the
redevelopment plans as well as for the purchase of properties. As of September 2010, the
total amount of debt owed to the City by the Agency was $87,898,119 comprised of
advances payable and reimbursement agreements. The following represents a summary of
projects that the Agency borrowed money to fund:
- Pledged assistance with public infrastructure, the Mola Development (TownSquare) for a
mixed use project
- Relocation of Mobile Home Park Residents from Driftwood to Oceanview Mobile Home
Park, part of Mayer Corporation
- Construction of Emerald Cove Senior Complex — land and development costs
- Main Street Parking Structure — acquisition of land and development
- Acquisition of land and entering into a Disposition and Development Agreement with
California Resorts for a mixed use project — now Pierside Pavilion
In an effort to preserve and secure the repayment from future tax increments of the General
Fund advances made to the Redevelopment Agency of the City of Huntington Beach, it is
staff's recommendation to further formalize the existing debt. Although these outstanding
advances are not new debt, staff believes that memorializing these obligations with actual
debt repayment schedule would be prudent. These advances were made in the past to the
various redevelopment project areas and reported annually on the Agency's annual
Statement of Indebtedness report filed with the County of Orange.
The Agency in Fiscal Year 2011-12 is schedule to pay $4,913,800 in debt repayment. The
repayment is scheduled to increase at 2% on an annual basis for 20 years. Based upon the
proposed new Implementation Plan Schedule, repayment would be $6,046,402 (Merged
Area) and $532,523 (Southeast Coastal Area) through 2030. The interest rate is set at
3.81 %, which is the current interest rate that the Agency is charged.
Strategic Plan Goal:
Maintain financial viability and our reserves
Environmental Status: Not Applicable
-2- V26/2011 12:16 PM
REQUEST FOR COUNCILIREDEVELOPMENT AGENCY COUNCIL ACTION
MEETING DATE: 1128/2011 DEPARTMENT ID NUMBER: ED 11-06
Attachment(s):
1. Implementation Agreement To Cooperation Agreement between
the City of Huntington Beach and the City of Huntington Beach
Redevelopment Agency For Payment of Costs Associated with
Certain Redevelopment Funded Capital Improvements
-3- 112612011 12:16 PM
IMPLEMENTATION AGREEMENT TO
COOPERATION AGREEMENT
FOR PAYMENT OF COSTS ASSOCIATED WITH CERTAIN
REDEVELOPMENT FUNDED CAPITAL IMPROVEMENTS
THIS IMPLEMENTATION AGREEMENT (the "Agreement") is entered into this
19 174 day of January 2011, by and between the CITY OF HUNTINGTON BEACH
(the "City") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH (the "Agency"), with reference to the following facts:
A. On June 20, 1983, the Agency and City entered into that certain
Cooperation Agreement For Payment Of Costs Associated With Certain
Redevelopment Funded Capital Improvements (the "Cooperation Agreement") to
provide for and facilitate the acquisition of real property, installation and construction of
certain public improvements and facilities and to implement the Redevelopment Plan for
the Huntington Beach Redevelopment Project and to expend tax increment to
accomplish the goals and objectives of the Redevelopment Project.
B. Said Cooperation Agreement was amended pursuant to City Council
Ordinance 3343 on December 16, 1996 amending and merging the Constituent
Projects.
C. On June 17, 2002, the City Council adopted Ordinance 3561, approving and
adopting the Redevelopment Plan for the Southeast Coastal Redevelopment Project.
The City and Agency entered into a Cooperation Agreement dated September 2, 2003,
regarding redevelopment projects and capital improvements to be carried out in the
Southeast Coastal Redevelopment Project Area.
D. The City and the Agency desire to supplement the provisions of the
Cooperation Agreement to add additional procedures for the orderly implementation of
the Cooperation Agreement.
E. The obligations of the Agency under the Cooperation Agreement and this
Agreement shall constitute an indebtedness of the Agency for the purpose of carrying
out the Redevelopment Plan for the Project Areas. The obligations set forth in the
Cooperation Agreement and this Agreement are contractual obligations that, if
breached, will subject the Agency to damages and other liabilities or remedies.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
Page 1
INTRODUCTORY PROVISIONS
The recitals above are an integral part of this Agreement and set forth the
intentions of the parties and the premises on which the parties have decided to enter
into this Agreement.
AGENCY'S OBLIGATIONS
The obligations of the Agency under this Agreement shall be payable out of net
available tax increments, as defined herein. Wherever used in the Cooperation
Agreement the term "net available tax increments" shall mean and include tax increment
as defined or provided for in any applicable constitutional provision, statute or other
provision of law now existing or adopted in the future, and allocated to (i) the Agency
and/or (ii) any lawful successor entity of the Agency and/or (iii) any entity established by
law to carry out the redevelopment plan for the Project Area and/or (iv) any entity
established by law to expend tax increment and/or (v) any entity established by law to
pay indebtedness of the Agency to be repaid in whole or in part with tax increment,
pursuant to Section 33670, et seq., of the California Community Redevelopment Law or
any applicable constitutional provision, statute or other provision of law now existing or
adopted in the future.
All payments due to be made by the Agency to the City under the Cooperation
Agreement shall be made by the Agency in accordance with the schedule set forth in
Exhibit 1 which is incorporated herein by this reference and as otherwise necessary to
reimburse the City for the cost to the City of performing its obligations hereunder. City
shall provide Agency with a quarterly report accompanied by evidence reasonably
satisfactory to the Agency's Executive Director that the City has progressed in the
development and construction of the Project or Projects for which payment is made by
the Agency commensurate with such payments and has incurred costs or obligations to
make payments equal to or greater than such amount.
111. CITY'S OBLIGATIONS
1 . The City shall accept any funds paid by the Agency pursuant to the
Cooperation Agreement and shall devote those funds to completion of the Projects by
(i) reimbursing the City or using such funds to make City expenditures to perform the
work required to carry out and complete the Projects; (ii) utilizing such funds to pay debt
service on bonds or other indebtedness or obligations that the City has or will incur for
such purposes; and/or (iii) paying such funds into a special fund of the City to be held
and expended only for the purpose of satisfying the obligations of the City hereunder.
2. The City shall timely complete the work required for each Project in
accordance with the Schedule of Performance attached hereto as Exhibit 2 and
incorporated herein by this reference.
Page 2
IV. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of California Government Code Section 895.2
imposing certain tort liability jointly upon public entities solely by reason of such entities
being parties to an agreement as defined by Government Code Section 895, the parties
hereto, as between themselves, pursuant to the authorization contained in Government
Code Sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or
any of its officers, agents or employees, by law for injury caused by negligent or
wrongful acts or omissions occurring in the performance of this Agreement to the same
extent that such liability would be imposed in the absence of Government Code Section
895.2. To achieve the above -stated purpose, each party indemnifies, defends and
holds harmless the other party for any liability, losses, cost or expenses that may be
incurred by such other party solely by reason of Government Code Section 895.2.
1
V. ENTIRE AGREEMENT: WAIVERS AND AMENDMENTS
This Agreement shall be executed in triplicate originals, each of which is deemed
to be an original. This Agreement consists of (_) pages, which, together with
the Cooperation Agreement constitute the entire understanding and agreement of the
parties.
This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supercedes all negotiations or previous agreements between the
parties with respect to the subject matter of this Agreement; provided that this
Agreement does not supercede the Cooperation Agreement except as expressly set
forth herein.
This Agreement is intended solely for the benefit of the City and the Agency.
Notwithstanding any reference in this Agreement to persons or entities other than the
City and the Agency, there shall be no third party beneficiaries under this Agreement.
All waivers of the provisions of this Agreement and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the
parties.
VI. SEVERABILITY
If any term, provisions, covenant or condition of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, (i) the remainder of the
provisions shall continue in full force and effect unless the rights and obligations of the
parties have been materially altered or abridged by such invalidation, voiding or
unenforceability and (ii) the Cooperation Agreement shall continue in full force and
effect.
Page 3
VII. DEFAULT
If either party fails to perform or adequately perform an obligation required by this
Agreement within thirty (30) calendar days of receiving written notice from the non -
defaulting party, the party failing to perform shall be in default hereunder. In the event
of default, the non -defaulting party will have all the rights and remedies available to it at
law or in equity to enforce the provisions of this contract, including without limitation the
right to sue for damages for breach of contract. The rights and remedies of the non -
defaulting party enumerated in this paragraph are cumulative and shall not limit the non -
defaulting party's rights under any other provision of this Agreement, or otherwise waive
or deny any right or remedy, at law or in equity, existing as of the date of the Agreement
or hereinafter enacted or established, that may be available to the non -defaulting party
against the defaulting party. All notices of defaults shall clearly indicate a notice of
default under this Agreement.
VIII. BINDING ON SUCCESSORS
This Agreement and the Cooperation Agreement shall be binding on and shall
inure to the benefit of all successors and assigns of the parties, whether by
agreement or operation of law.
IX. EFFECT ON COOPERATION AGREEMENT
Except as expressly set forth herein, the Cooperation Agreement shall continue
in full force and effect in accordance with its terms.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.
Attest:
AN
IItii�r_l =-I.,
REVIEWED AND APPROVED:
C
CITY OF HUNTINGTON BEACH
Director of Economic Devel ment
7�
Page 4
APPROVED AS TO FORM:
<��ity Attornby
j�
Attest:
�cretary
APPROVED AS TO FORM:
City Attorney
APPROVED AS TO FORM:
Kane Ballmer & Berkman
By: Murray 0. Kane
Agency Special Counsel
Page 5
HUNTINGTON BEACH
REDEVELOPMENT AGENCY
EXHIBIT 1
Schedule of Repayment
Page 6
Advances to RDA - Merged Project Area
Amortization Schedule
Advances to RDA -
Merged Project Area
(in order of repayment)
Balance as of
9/30/10
General Fund
8,409,666
Deferred Land Purchases
61,228,338
Deferred Development Fees
731,849
Park A&D Fund
5,267,410
Sewer Fund
265,329
Drainage Fund
639,443
Water Fund
3,963,276
Subtotal
80,505,311
Add: FY 10-11 Interest
3,067,252
Total Payout
83,572,563
Face Value 83,572,563
Annual Interest 0.0381
Periods 20
Beginning
Total Annual
Payment Date
Balance
Principal
Interest
Ending Balance
Payment
10/1/2011
83,572,563
(2,862,287)
(3,184,115)
80,710,276
6,046,402
10/1/2012
80,710,276
(2,971,340)
(3,075,062)
77,738,936
6,046,402
10/1/2013
77,738,936
(3,084,548)
(2,961,853)
74,654,388
6,046,402
10/1/2014
74,654,388
(3,202,069)
(2,844,332)
71,452,319
6,046,402
10/1/2015
71,452,319
(3,324,068)
(2,722,333)
68,128,251
6,046,402
10/1/2016
68,128,251
(3,450,715)
(2,595,686)
64,677,535
6,046,402
10/1/2017
64,677,535
(3,582,188)
(2,464,214)
61,095,348
6,046,402
10/1/2018
61,095,348
(3,718,669)
(2,327,733)
57,376,679
6,046,402
10/1/2019
57,376,679
(3,860,350)
(2,186,051)
53,516,329
6,046,402
10/1/2020
53,516,329
(4,007,429)
(2,038,972)
49,508,899
6,046,402
10/1/2021
49,508,899
(4,160,113)
(1,886,289)
45,348,787
6,046,402
10/1/2022
45,348,787
(4,318,613)
(1,727,789)
41,030,174
6,046,402
10/1/2023
41,030,174
(4,483,152)
(1,563,250)
36,547,022
6,046,402
10/1/2024
36,547,022
(4,653,960)
(1,392,442)
31,893,062
6,046,402
10/1/2025
31,893,062
(4,831,276)
(1,215,126)
27,061,786
6,046,402
10/1/2026
27,061,786
(5,015,348)
(1,031,054)
22,046,438
6,046,402
10/1/2027
22,046,438
(5,206,432)
(839,969)
16,840,006
6,046,402
10/1/2028
16,840,006
(5,404,797)
(641,604)
11,435,209
6,046,402
10/1/2029
11,435,209
(5,610,720)
(435,681)
5,824,489
6,046,402
10/1/2030
5,824,489
(5,824,489)
(221,913)
(0)
6,046,402
Advances to RDA - Southeast Coastal
Amortization Schedule
Advances to RDA- Balance as of
Southeast Coastal 9/30/10
General Fund 7,090,319
Add: FY 10-11 Interest 270,141
Total Payout 7,360,460
Face Value 7,360,460
Annual Interest 0.0381
Periods 20
Beginning
Total Annual
Date
Balance
Principal
Interest
Ending Balance
Payment
-Payment
10/1/2011
7,360,460
(252,089)
(280,434)
7,108,371
532,523
10/1/2012
7,108,371
(261,694)
(270,829)
6,846,677
532,523
10/1/2013
6,846,677
(271,664)
(260,858)
6,575,013
532,523
10/1/2014
6,575,013
(282,015)
(250,508)
6,292,998
532,523
10/1/2015
6,292,998
(292,760)
(239,763)
6,000,238
532,523
10/1/2016
6,000,238
(303,914)
(228,609)
5,696,324
532,523
10/1/2017
5,696,324
(315,493)
(217,030)
5,380,831
532,523
10/1/2018
5,380,831
(327,513)
(205,010)
5,053,318
532,523
10/1/2019
5,053,318
(339,991)
(192,531)
4,713,327
532,523
10/1/2020
4,713,327
(352,945)
(179,578)
4,360,382
532,523
10/1/2021
4,360,382
(366,392)
(166,131)
3,993,989
532,523
10/1/2022
3,993,989
(380,352)
(152,171)
3,613,638
532,523
10/1/2023
3,613,638
(394,843)
(137,680)
3,218,794
532,523
10/1/2024
3,218,794
(409,887)
(122,636)
2,808,908
532,523
10/1/2025
2,808,908
(425,503)
(107,019)
2,383,404
532,523
10/1/2026
2,383,404
(441,715)
(90,808)
1,941,689
532,523
10/1/2027
1,941,689
(458,544)
(73,978)
1,483,145
532,523
10/1/2028
1,483,145
(476,015)
(56,508)
1,007,130
532,523
10/1/2029
1,007,130
(494,151)
(38,372)
512,978
532,523
10/1/2030
512,978
(512,978)
(19,544)
(0)
532,523
EXHIBIT 2
SCHEDULE OF PERFORMANCE
Page 7
SCHEDULE OF PERFORMANCE
CAPITAL IMPROVEMENT PROGRAM
I — 5 Years
5 — 10 Years 10 — 15 Years
Downtown Parking
X
Downtown Street Lights Project
X
Main Street Infrastructure/Streetscape lmprvmts
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
5 TH Street Development X
6 th @ PCH — parking/removal of billboard sign X
7 th @ PCH — parking/housing/retail X
Waterfront Section 108 X X X
Administrative Staff costs X X X
Council/Agency Meeting Held� I—,W-A011
Deferred/Continued to:
"�(Agproyed LJ Conditio =IyAp r5ved Ll Denied Clok's Sig#ure
Z_-
Council Meeting Date: 1/28/2011 Department ID Number'. ED 11-05
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPM ENT AGENCY ACTION
SUBMITTED TO: Honorable Mayor/Chair and City Council/Redevelopment Agency
Members
SUBMITTED BY: Fred A. Wilson, City Manager/Executive Director
PREPARED BY: Stanley Smalewitz, Director of Economic Development/Deputy
Executive Director
Lori Ann Farrell, Director of Finance
SUBJECT: Adopt Resolutions for a Cooperation Agreement between the City of
Huntington Beach and the City of Huntington Beach Redevelopment
Agency for Funding of Specified Public Infrastructure Improvements and
Affordable Housing Projects
-1 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
Staff recommends that the City Council and the Redevelopment Agency Board adopt
respective Resolutions approving a Cooperation Agreement between the City of Huntington
Beach (the "City") and the City of Huntington Beach Redevelopment Agency (the "Agency")
relating to the funding of specified public infrastructure improvements and affordable housing
projects.
Funding Source:
The Cooperation Agreement provides for funding of specified projects from future
Redevelopment Agency tax increment funding.
Recommended Action: Motion to:
-4/
REQUEST FOR COU NCI L/REDEVELOPM ENT AGENCY ACTION
MEETING DATE: 1/28/2011 DEPARTMENT ID NUMBER: ED11-05
A. Adopt City Council Resolution No. 2011 - 07, "A Resolution of the City Council of the
City of Huntington Beach Approving a Cooperation Agreement and making certain
determination and findings related thereto";
B. Adopt Redevelopment Agency 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"; and
C. Authorize the Mayor/Redevelopment Chair, City Manager/Executive Director, and
City/Agency Clerk to execute any and all documents.
Alternative Action(s): Do not approve the Resolutions and provide direction to staff.
Analysis:
On January 10, 2011, Governor Brown proposed to eliminate local redevelopment agencies
by July 1, 2011. His proposal abolishes local redevelopment in the following manner:
- Statutory elimination of redevelopment agencies that will protect obligations for existing
projects and will divert $1.7 billion to the State's General Fund in 2011-12 for Medi-Cal
and trial courts. There will be $210 million leftover for distribution to schools, cities, and
counties, according to their proportionate share of current property tax.
- In subsequent budget years, after deducting for existing debt obligations, the remaining
tax increment property tax will go to the cities, counties, and schools. There will be a $50
million exception in the amount currently going to enterprise special districts which are
fee supported - this will go to counties. Please note that this will result in a significant
reduction in the amount of total property tax revenue receives by the City. Currently, the
City received 100% of the base tax increment, after pass-throughs for redevelopment
activities. Under the new proposal, the City would receive approximately 18% of that
amount for general purposes reducing annual funding dramatically from approximately
from $20 million to $3.6 million.
- The current balances in redevelopment agencies housing set -aside funds will be shifted
to local housing authorities.
- A constitutional amendment to provide for 55-percent (55%) voter approval for local,
limited tax increases and bonding against local revenues for economic development
projects similar to those currently funded through redevelopment. Existing agencies will
be required to cease creation of new obligations.
- The local governmental entity will be required to designate a successor agency to be
responsible for retiring current redevelopment debt obligations in accordance with
existing payment schedules.
-2- 1126/2011 9:48 AM
REQUEST FOR COU NCILIREDEVELOPM ENT AGENCY ACTION
MEETING DATE: 1128/2011 DEPARTMENT ID NUMBER: ED 11-05
The Legislative Analyst's Office (LAO) is responsible for providing an analysis of the
Governor's proposed budget. In referencing the Governor's proposal to eliminate
redevelopment agencies, the LAO recognizes that developing the statutory measures to
implement the elimination of redevelopment agencies is a complex proposal that will take
considerable work by the Legislature. Accordingly, the LAO is recommending that the
Legislature pass urgency legislation as soon as possible prohibiting redevelopment
agencies, during this period of legislative review, from taking actions that increase their debt.
Specifically, the urgency legislation would prohibit redevelopment agencies from:
(1) Taking on any new debt that would be included on their Statement of Indebtedness: the
statement that identifies redevelopment agency debt and makes the agency eligible for
property tax revenues; or
(2) Creating, amending, or extending any redevelopment project areas. This approach
would preserve the Legislature's options as it reviews the administration's proposal, but
would not have a lasting effect on redevelopment agencies if the Legislature elects not to
adopt it.
The budget proposal indicates that the State does not intend to impair existing
redevelopment agency obligations to current bond holders, lenders and existing contractual
obligations. These obligations would continue to be fulfilled by the City if redevelopment
agencies are eliminated. The budget also clearly indicates that the State intends to capture
all tax increment that redevelopment agencies have not encumbered as of the date such
commitments are prohibited. The budget does not discuss the fate of existing agency
assets, either bond proceeds or accumulated tax increment receipts that have not been
encumbered. There is a clear possibility that these funds would be directed to the City to
pay down existing Agency debt obligations; in our case the repayment of bond proceeds,
rather than for redevelopment projects.
After consultation with Redevelopment Agency counsel, staff is recommending that the City
Council and the Redevelopment Agency Board consider entering into a Cooperation
Agreement that would be executed and effective prior to the potential urgency State
legislation described in the LAO overview. This would allow the City and Redevelopment
Agency to agree to use redevelopment funds on a specified schedule, for key
redevelopment capital improvement projects in both the Merged and the Southeast Coastal
project areas, using future tax increment and unencumbered tax increment. The
recommended Cooperative Agreement is one way for the Redevelopment Agency to
formalize a debt obligation in advance of the urgency legislation. The Cooperation
Agreement would allow the Agency to obligate both existing funds and future property tax
increment in both project areas towards the list of public improvement projects that the City
would include in its capital improvement plan or other long-term planning documents.
These public improvement projects are located in redevelopment project areas and would
be owned by the City, except for possible affordable housing projects which can be owned
by other parties.
-3- 1/26/2011 9:48 AM
REQUEST FOR COUNCIL/REDEVELOPM ENT AGENCY ACTION
MEETING DATE: 1/2812011 DEPARTMENT ID NUMBER: ED11-05
Here is a partial list of those proposed projects and services, listed in the attachment:
Downtown Streetscape Improvements
Future Redevelopment Projects on 3 rd and 5 th Streets
Capital Projects on Edinger Avenue pursuant to Beach Edinger Specific Plan
Improvements to Main Street and Oakview Library
Improvements to Lake Street and Murdy Fire Stations
Variety of Affordable Housing Projects
Strategic Plan Goal:
Maintain financial viability and our reserves
Environmental Status:
An environmental review will be determined
Improvement or Affordable Housing Project.
Attachment(s):
prior to any commencement of the Capital
-4- 1/26/2011 9:48 AM
ATTACHMENT #1
IL-
RESOLUTION NO. 2011-07
A RESOLUTION OF THE CITY COUNCIL 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 (Yorktown- 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; and 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 on December 16, 1996 by Ordinance 3343 and the
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, 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 identified as such in Exhibit 1 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 City Council 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 City Council hereby finds and determines that the foregoing recitals are
true and correct.
NOW THEREFORE, the City Council of the City of Huntington Beach does
hereby resolve as fgollows:
Section 1. Based on the evidence in the record, the City Council hereby
finds and determines, with respect to the Projects that are publicly owned and are
located inside or contiguous to the respective project area as identified in Exhibit 1
attached to the Agreement, 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 CRIL.
Section 2. Based on the evidence in the record, the City Council 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 City Council 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 City
Council is hereby approved, a copy of which is on file with the City Clerk.
Section 5. The City Manager, or designee, is hereby authorized to execute
the Agreement on behalf of the City, together with such non -substantive changes
and amendments as may be approved by the City Manager and the City Attorney.
Section 6. The City Manager, or designee, is hereby authorized, on behalf
of the City, to sign all documents necessary and appropriate to carry out and
implement the Agreement, and to administer the City'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 CRIL; 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 City Council of the City of Huntington Beach at a
special meeting thereof held on the 28th day of january , 2011.
ATTEST:
rlynn, 54CIerk'_/?
REVIEWED AND APPROVED:
INITIATED AND APPROVED:
Director of Eco-'nomic De
Approved as to form:
nni f e ArM:��,Ilra ith\,�\C it yAtto rn ey
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/5 th Street and Streetscape)
Warner/Beach Street Improvements $160,000
(Proposed 50% of State grant match for street widen i ng/sign als)
Redevelopment Area — Street/Tree Replacement $1,000,000
(Based upon Street/Tree Petition Listleligible streets)
Improvements to Main Street Library $1,250,000
(ADA Bo throomslEle va tor/RooflGen eral Rehab)
Improvements to Oakview Library $1,000,000
(RooflPlumbingINew 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 ImprovementslRooflGeneral Rehab)
Oakview Childcare Center $300,000
(Exterior Bathrooms/ADA Improvements)
Oakview Sports Field Lighting $750,000
(Lights on Cityfield)
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 $ 75,0001unit)
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 unitslDeveloper request $100, 0001unit)
Main/Ellis/Delaware $1,500,000
(proposed new unitsfor sale — 5 new unitsl$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 progromfor 10 years at $500,000 year)
Pacific City $14,400,000
(Required 81 units - 48 moderate on -site ownership at $300.,0001unit)
Dairyview $200,000
(OPA with 4 units relocationliong term covenants)
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond Repayment $5,137,000
5 TH Street Development $4,000,000
(Proposed OPA with property owners to increase parking and assist in acquisition)
6 1h @ PCH — parking/removal of billboard sign $2,500,000
(OPA with Property owner to increase parkinglossist affordable housing)
7 th @ PCH — parking/housing/retail $1,500,000
(OPA with Property owner to increase parkinglassist 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
TotalPayout 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
TotalPayout 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
Downtown Parking
Downtown Street Lights Project
Main Street Infrastructure/Streetscape Imprvmts
Warner/Beach Street Improvements
Redevelopment Area — Street/Tree Replacement
Improvements to Main Street Library
Improvements to Oakview Library
Seismic Upgrades Murdy Fire Station
Rehabilitation to Lake Street Fire Station
Pedestrian Bridge Enhancements
Oakview Community Center Enhancements
Oakview Childcare Center
Oakview Sports Field Lighting
Gothard Street Reconstruction
Edinger Avenue Reconstruction
Slater Avenue Reconstruction
Hamilton Avenue Reconstruction
AFFORDABLE HOUSING
Huntington Yorba (at -risk)
Beach/Warner
Beach/Ellis
Edinger/Gothard
Main/Ellis/Delaware
Beach/Ellis/Main
Oakview Mixed Use Building/Koledo
First Time Homebuyers Program
Pacific City
Dairyview
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond
5 TH Street Development
6 th @ PCH — parking/removal of billboard sign
7 th @ PCH — parking/housing/retail
Waterfront Section 108
Administrative Staff costs
1 — 5 Years 5 — 10 Years 10 — 15 Years
X
X
X
X
X X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X X
X
X
X
X X
X X
X
X
X
X
COOPERATION AGREEMENT
FOR PAYMENT OF COSTS ASSOCIATED WITH CERTAIN REDEVELOPMENT
AGENCY FUNDED PROJECTS
THIS COOPERATION AGREEMENT (this "Agreement") is entered into this
day of January, 2011, by and between the CITY OF HUNTINGTON BEACH (the
"City") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(the "Agency"), with reference to the following facts:
A. The City Council of the City of HUNTINGTON BEACH the ("City Council") adopted
Redevelopment Project Area No. l(Yorktown-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, the
"Project Areas"), which results in the allocation of taxes from the Project Areas to the Agency
for purposes of redevelopment.
B. 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 perforrii 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 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.
C. The Agency has adopted its Five -Year Implementation Plans for the Project Areas, as
amended from time to time (collectively, 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 and budget
allocations based on estimated available tax increment revenue and debt financing structures,
D. 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. Collectively, the projects associated with this Agreement are listed in the attached
Exhibit 1, which are incorporated herein by this reference (the "Projects"). 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
Cooperation Agreement
Page I of 6
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, the Agency desires assistance and cooperation in
the implementation and completion of the Projects. The City agrees 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.
E. In considering the Agency's desire to ensure timely implementation and completion of
the Projects, the Agency wishes to enter into this Agreement with the City for the pledge of net
available tax increment to finance the Projects. The purpose of this 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.
F. 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 Section 33445 and other applicable statutes. The obligations
set forth in this Agreement will be contractual obligations that, if breached, will subject the
Agency to damages and other liabilities or remedies.
G. The City Council and the Agency by resolution have each found that the use of Agency
redevelopment funding for the publicly owned improvements included in the Projects is in
accordance with Section 33445 and 33445.1 of the CRL and other applicable law. The said City
Council and Agency resolutions are each based on the authority of the Agency, with the consent
of the City Council, to pay all or part of the cost of the installation and construction of any
building, facility, structure, or other improvements which is publicly owned either within or
outside a Project Area, if the City Council makes certain determinations.
H. The City Council and the Agency by resolution have each found that the use of the
Agency's low and moderate income housing fund for the Projects that include low and moderate
income housing and are located outside of the Project Areas is in accordance with Section
33334.2 of the CRL because the use of such funds will be of benefit to the Project Areas.
1. By approving and entering into this Agreement, the Agency has approved the pledge of
net available tax increment from the Project Areas to pay for the Projects.
J. The obligations of the Agency under this Agreement shall constitute an indebtedness of
the Agency for the purpose of carrying out the Redevelopment Plan for the Project Areas.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
Cooperation Agreement
Page 2 of 6
1. INTRODUCTORY PROVISIONS
The recitals above are an integral part of this Agreement and set forth the intentions of
the parties and the premises on which the parties have decided to enter into this Agreement.
11. AGENCY'S OBLIGATIONS
1. The Projects are those projects which are listed on the attached Exhibit 1. The
Agency agrees to pay to the City an amount equal to the cost to the City to carry out the Projects,
including without limitation all costs incurred by the City for the planning, acquisition and
disposition, financing, development, permitting, design, site testing, bidding, construction and
construction management of the Projects. The Agency's obligations under this Agreement,
including without limitation the Agency's obligation to make the payments to the City required
by this Agreement, shall constitute an indebtedness of the Agency for the purpose of carrying out
the redevelopment of the Project Areas and are obligations to make payments authorized and
incurred pursuant to Sections 33445 and 33445.1 of the CRL and other applicable statutes. The
obligations of the Agency set forth in this Agreement are contractual obligations that, if
breached, will subject the Agency to damages and other liabilities or remedies.
2. The obligations of Agency under this Agreement shall be payable out of net
available tax increment, as defined in the above recitals and/or as defined or provided for in any
applicable constitutional provision, statute or other provision of law now existing or adopted in
the future, levied by or for the benefit of taxing agencies in the Project Areas, and allocated to
the Agency and/or any lawful successor entity of the Agency and/or any entity established by
law to carry out any of the redevelopment plans for the Project Areas and/or expend tax
increment or pay indebtedness of the Agency to be repaid with tax increment, pursuant to
Section 33670 of the CRL or any applicable constitutional provision, statute or other provision of
law now existing or adopted in the future, in amounts not less than those set forth in the Payment
Schedule attached hereto as Exhibit 2 and incorporated herein by this reference. In the event that
additional funds are required in order to make the Agency payments to the City required by this
Agreement, the Agency shall make such payments from income received by the Agency from its
projects and programs or any other additional funds available to it.
3. The indebtedness of Agency under this Agreement shall be subordinate to the
rights of the holder or holders of any existing bonds, notes or other instruments of indebtedness
(all referred to herein as "Indebtedness") of the Agency incurred or issued to finance the Project
Areas, including without limitation any pledge of tax increment revenues from the Project Areas
to pay any portion of the principal (and otherwise comply with the obligations and covenants) of
any bond or bonds issued or sold by Agency with respect to the Project Areas.
4. All payments due to be made by the Agency to the City under this Agreement
shall be made by the Agency in accordance with the schedule set forth in Exhibit 2 and as
otherwise necessary to reimburse the City for the cost to the City of performing its obligations
hereunder. City shall provide Agency with a quarterly report accompanied by evidence
reasonably satisfactory to the Agency's Executive Director that the City has progressed in the
development and construction of the Project for which payment is made by the Agency
Cooperation Agreement
Page 3 of 6
commensurate with such payments and has incurred costs or obligations to make payments equal
to or greater than such amount.
111. CITY'S OBLIGATIONS
I . The City shall accept any funds offered by the Agency pursuant to this Agreement
and shall devote those funds to completion of the Projects by (i) reimbursing the City or using
such funds to make City expenditures to perform the work required to carry out and complete the
Projects; (11) utilizing such funds to pay debt service on bonds or other indebtedness or
obligations that the City has or will incur for such purposes; and/or paying such funds into a
special fund of the City to be held and expended only for the purpose of satisfying the
obligations of the City hereunder.
2. It is the responsibility of City to pay all development and construction costs in
connection with the Projects from funds paid to the City by the Agency under this Agreement.
3. The City shall perform its obligations hereunder in accordance with the applicable
provisions of federal, state and local laws, including the obligation to comply with environmental
laws such as CEQA, and shall timely complete the work required for each Project in accordance
with the Schedule of Performance attached hereto as Exhibit 3 and incorporated herein by this
reference.
IV. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of California Government Code section 895.2
imposing certain tort liability jointly upon public entities solely by reason of such entities being
parties to an agreement as defined by Government Code section 895, the parties hereto, as
between themselves, pursuant to the authorization contained in Government Code sections 895.4
and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or
employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in the
absence of Government Code section 895.2. To achieve the above -stated purpose, each party
indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses
that may be incurred by such other party solely by reason of Government Code section 895.2.
V. ENTIRE AGREEMENT; WAIVERS; AND AMENDMENTS
I . This Agreement shall be executed in triplicate originals, each of which is deemed
to be an original. This Agreement consists of _ U pages and three (3) Exhibits, which
constitute the entire understanding and agreement of the parties.
2. This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements between the parties
with respect to the subject matter of this Agreement.
Cooperation Agreement
Page 4 of 6
3. This Agreement is intended solely for the benefit of the City and the Agency.
Notwithstanding any reference in this Agreement to persons or entities other than the City and
the Agency, there shall be no third party beneficiaries under this Agreement.
4. All waivers of the provisions of this Agreement and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the parties.
VI. SEVERABILITY
If any term, provisions, covenant or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall
continue in full force and effect unless the rights and obligations of the parties have been
materially altered or abridged by such invalidation, voiding or unenforceability.
VII. DEFAULT
If either party fails to perform or adequately perform an obligation required by this
Agreement within thirty (30) calendar days of receiving written notice from the non -defaulting
party, the party failing to perform shall be in default hereunder. In the event of default, the non -
defaulting party will have all the rights and remedies available to it at law or in equity to enforce
the provisions of this contract, including without limitation the right to sue for damages for
breach of contract. The rights and remedies of the non -defaulting party enumerated in this
paragraph are cumulative and shall not limit the non -defaulting party's rights under any other
provision of this Agreement, or otherwise waive or deny any right or remedy, at law or in equity,
existing as of the date of the Agreement or hereinafter enacted or established, that may be
available to the non -defaulting party against the defaulting party. All notices of defaults shall
clearly indicate a notice of default under this Agreement.
VIII. BINDING ON SUCCESSORS
This Agreement shall be binding on and shall inure to the benefit of all successors and
assigns of the parties, whether by agreement or operation of law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth
above.
Attest: CITY OF HUNTINGTON BEACH
By: By:
Vity Clerk
[Signatures continue on the following page]
Cooperation Agreement
Page 5 of 6
Attest: REDEVELOPMENT AGENCY OF THE CITY OF
By: OA&j 65�- jjv94
Uecretary U
APPROVED AS TO FORM:
B : — W
(! lity Att&ney
APPROVED AS TO FORM:
Kane Ballmer & Berkman
By:
Agency Special Counsel
Cooperation Agreement
Page 6 of 6
W"Z14,11
cy Chair
Attest REDEV ELOPMENT AGENCY OF THE CITY OF
M
Secretary
FEW I a a asyj 0 9101-M
By:
City Attorney
mamas I'm
INUM"MIRMWOM , I
By:
Agency Special Cm4sel
M.
Cooperation Agreement
RAPe 6 of 6
Agency Chair
EXHIBIT 1
SCHEDULE OF PROJECTS
[behind this page]
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 Streetl5'h Street and Streetscape)
Warner/Beach Street Improvements $160,000
(Proposed 50% of State grant match for street widen ing/signals)
Redevelopment Area — Street/Tree Replacement $1,000,000
(Based upon StreetlTree Petition Listleligible streets)
Improvements to Main Street Library $1,250,000
(ADA BothroornslElevator/RooflGeneral Rehab)
Improvements to Oakview Library $1,000,000
(RooflPlumbingINew ElectricallGenerol 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 ImprovementsIRoofIGenerol Rehab)
Oakview Childcare Center $300,000
(Exterior BothroomsIADA Improvements)
Oakview Sports Field Lighting $750,000
(Lights on Cityfield)
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-riskfamily project 181 units leverages at $75,0001unit)
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 unitslDeveloper request $100,0001unit)
Main/Ellis/Delaware $1,500,000
(proposed new unitsforsale — 5 new unitsl$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 $300,0001unit)
Dairyview $200,000
(OPA with 4 units relocation/long term covenants)
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond Repayment $5,137,000
5 TH Street Development $4,000,000
(Proposed OPA with property owners to increase parking and assist in acquisition)
6 th @ PCH — parking/removal of billboard sign $2,500,000
(OPA with Property owner to increase porkinglassist affordable housing)
7 th @ PCH — parking/housing/retail $1,500,000
(OPA with Property owner to increase porkinglassist 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
PAYMENT SCHEDULE
[behind this page]
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
TotalPayout 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
[behind this page]
SCHEDULE OF PERFORMANCE
CAPITAL IMPROVEMENT PROGRAM
Downtown Parking
Downtown Street Lights Project
Main Street Infrastructure/Streetscape Imprvmts
Warner/Beach Street Improvements
Redevelopment Area — Street/Tree Replacement
Improvements to Main Street Library
Improvements to Oakview Library
Seismic Upgrades Murdy Fire Station
Rehabilitation to Lake Street Fire Station
Pedestrian Bridge Enhancements
Oakview Community Center Enhancements
Oakview Childcare Center
Oakview Sports Field Lighting
Gothard Street Reconstruction
Edinger Avenue Reconstruction
Slater Avenue Reconstruction
Hamilton Avenue Reconstruction
AFFORDABLE HOUSING
Huntington Yorba (at -risk)
Beach/Warner
Beach/Ellis
Edinger/Gothard
Main/Ellis/Delaware
Beach/Ellis/Main
Oakview Mixed Use Building/Koledo
First Time Homebuyers Program
Pacific City
Dairyview
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond
5 TH Street Development
6th @ PCH — parking/removal of billboard sign
7 th @ PCH — parking/housing/retail
Waterfront Section 108
Administrative Staff costs
1 — 5 Years 5 — 10 Years 10 — 15 Years
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
LVI
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
F
19
X
X
X
*51
X X
X
X X
X X
Res. No. 2011-07
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY OF HUNTINGTON BEACH
1, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a special meeting thereof held on January 28, 2011 by the following vote:
AYES:
Shaw, Harper, Carchio, Bohr, Dwyer, Boardman
NOES:
None
ABSENT:
Hansen
ABSTAIN: None
CiW Clerk and ex-officioUlerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
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 (Yorktown- 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 N6. 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 CRIL 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 CRIL.
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 CRIL.
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 CRIL; 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 January201 1.
Attest:
By: OAAV�') o�- i___1
Uecretary
REVIEWEP. APPROVED:
Z,Af
ExecVi I D/rector
APPROVED AS TO FORM:
By:
(_ _Ancy Cousdl
INITIATED AND APPROVED:
Deputy Execu
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 eff ect 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 — day of 2011 �
am
By: . ...... . . . . ....... ___ . ...... ... .......
Secretary
REVIEWED AND APPROVED:
Executive Director
By:
Agency Coun W1,
'M�TMI %_7 I ZJ I " 6 L_ i It iL-,-w I- v L-L-%-f I IV I L-I 14 1
AGENCY
0
. .. . ......
Deputy Executive Director
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 Streetl5th Street and Streetscape)
Warner/Beach Street Improvements $160,000
(Proposed 50% of State grant match for street widen i ng/signa Is)
Redevelopment Area — Street/Tree Replacement $1,000,000
(Based upon Street/Tree Petition Listleligible streets)
Improvements to Main Street Library $1,250,000
(ADA Ba throomslEle va tor/RooflGen eral Rehab)
Improvements to Oakview Library $1,000,000
(RooflPlumbingINew ElectricallGeneral 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 improve men tsIR ooflGen eral Rehab)
Oakview Childcare Center $300,000
(Exterior Bathrooms/ADA Improvements)
Oakview Sports Field Lighting $750,000
(Lights on Cityfield)
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-riskfamily project 181 units leverages at $75,0001unit)
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 unitslDeveloper request $100, 0001unit)
Main/Ellis/Delaware $1,500,000
(proposed new unitsforsole — 5 new unitsl$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 $300,0001unit)
Dairyview $200,000
(OPA with 4 units relocation1long term covenants)
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond Repayment $5,137,000
5 TH Street Development $4,000,000
(Proposed OPA with property owners to increase parking and assist in acquisition)
6 th @ PCH — parking/removal of billboard sign $2,500,000
(OPA with Property owner to increase porkinglassist affordable housing)
7 th @ PCH — parking/housing/retail $1,500,000
(OPA with Property owner to increase porkinglassist 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
Payment Date
Beginning
Balance
Principal
Interest
Ending Balance
Total Annual
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
TotalPayout
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
Downtown Parking
Downtown Street Lights Project
Main Street Infrastructure/Streetscape Imprvmts
Warner/Beach Street Improvements
Redevelopment Area — Street/Tree Replacement
Improvements to Main Street Library
Improvements to Oakview Library
Seismic Upgrades Murdy Fire Station
Rehabilitation to Lake Street Fire Station
Pedestrian Bridge Enhancements
Oakview Community Center Enhancements
Oakview Childcare Center
Oakview Sports Field Lighting
Gothard Street Reconstruction
Edinger Avenue Reconstruction
Slater Avenue Reconstruction
Hamilton Avenue Reconstruction
AFFORDABLE HOUSING
Huntington Yorba (at -risk)
Beach/Warner
Beach/Ellis
Edinger/Gothard
Main/Ellis/Delaware
Beach/Ellis/Main
Oakview Mixed Use Building/Koledo
First Time Homebuyers Program
Pacific City
Dairyview
ECONOMIC DEVELOPMENT
Main Promenade Parking Structure Bond
5 TH Street Development
6th @ PCH — parking/removal of billboard sign
7 th @ PCH — parking/housing/retail
Waterfront Section 108
Administrative Staff costs
1 — 5 Years 5 — 10 Years 10 — 15 Years
X
X
X
X
X X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X X
X
X
X
X X X
X
X
X
X
X
X X
X X
EXHIBIT 4
ACKNOWILEDGEMENTS
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 Implementation Plan Page I
PLAN 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 Redevelopment Project
2009 - 2014 ImRiementation 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.
• 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.
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 Imalementation Plan Page 4
U-KK!.k 90111 MUTNIT61 z��
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 Bli-ghtin-q 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 Blightin.
q 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 lmr2lementation 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 7
��QIMAQ I 912:01ciz? 1-1 JAM
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:
GOALS AND BLIGHT CATEGORIES
GOALT
WV1
"K
CATEGORY,
6. 16110
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.
Improve and/or provide electric, gas, telephone, and wastewater infrastructure to both
5
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.
Implement design and use standards to assure high aesthetic and environmental quality, and
8
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
9
property 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
Ifacilities.
Recycle and/or develop underutilized parcels to accommodate higher and better economic
11
uses while enhancing the City's financial resources.
12
Develop housing opportunities for all income levels.
-BLIGHT
Wtv&e
4,LIGHTING FA&
.1ZATAPPRY,
0777717177'
A
Serious deterioration and dilapidation of buildings.
B
Unsafe building conditions caused by buildings not seismically retrofitted.
C
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
D
buildings or lots.
E
Nigh c ime rates relative to other areas of the City.
F
11nadequate public improvements.
Huntington Beach Redevelopment Project
Past Projects and Programs
The following projects highlight the past efforts bxaddress the goals ofthe Agency and
PROJECTS ACCOMPLISHED FROM 2005-2009
Waterfront Project - Hyatt
Resort & Spa
Waterfront Project - William
Residential
Waterfront Project - Christopher
Waterfront Residential
CIM Project
Property Acquisition of 7872
Parcel Number: 142-081-28)
Details regarding each of the above stated projects are provided in the following pages:
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
'4- PROJEC
'T
GOALS
_'ADDR iSSED
BLIGHT
"EST7. 'AmbuN'T
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 11
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, 2,3,6,8, 10, 11 &
C & F
$5.5 Million
12
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
I
I
I 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 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.
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 Implementation 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.
General Tax Increment Funds
Beginning Cash Balance
Revenue
Tax Increment Revenue
Other Interest and
Revenue
Expend itu res/Fees
SERAF (Supplemental Educational Revenue
Augmentation Fund) State Budget Takeaway
Loan and Repayment - Housing Fund
Housing Set Aside
Tax Sharing Agreements
and
Statutory Pass Through Payments
Annual Payments
Debt Repayment
1999 Tax Allocation Bonds
2002 Tax Allocation Bonds
Agency Administration Expenses
Other Debt Expenses
Discretionary Expenditures
Capital Expenditures
City General Fund Repayments
I End
1 2011-12 2012-13 2013-14
3,914,000 859,000 366,000 739,000 1,736,000
17,761,000 18,699,000 20,332,000 22,536,000 23,997,000
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
5,374,000 1,106,000
-3,552,000 - 888,000 888,000 888,000
- 3,740,000 4,067,000 4,508,000 4,800,000
2,213,000 2,407,000 2,793,000 3,348,000 3,648,000
749,000
747,000
748,000
743,000
747,000
1,622,000
11,622�000
1,636,000
1,641,000
1,638,000
2,935,000
2,431,000
2,515,000
2,604,000
2,641,000
3,504,000
3,536,000
3,567,000
3,597,000
3,630,000
134,000
57,000
115,000
271,000
517,000
4,440,000
-
-
-
-
4,421,000
4,509,000
4,599,000
4,690,000
4,783,000
21.840.000
20.155.000
20.928.000
22.290.000
23,292,000
Huntington Be2ch Redevelopment Project
2009 — 2014 Implementation Pl2n P2qe 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
Mail (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.
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)
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
Southeast Coastal Ord. 3561
Eminent Domain Authorily
June 17, 2014
Bonded Indebtedness Amount
$50 million outstanding at any time
Adoption Date Termination Date
June 17, 2002 June 17, 2032
Time frame to Incur Indebtedness
July 17, 2022
Time frame to Incur Indebtedness
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) 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:
Southeast Coastal Project Area
Five Year IrnDlernentation 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 Implementation Plan (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 Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12)
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.
e 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:
• Unsafe/Unhealthy Buildings,
• Factors Hindering the Economically Viable Use of Lots,
• Incompatible Uses, and
Southeast Coastal Project Area
Five Year Implementation Plan (2007-08 to 2011-12) 8
o Impaired Investments.
Goal 10:1 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 11:1 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.
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.
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
$24,027
$24,508
$24,998
$25,498
122,586
TOTAL
$221,744
$226,179
$230,702
$235,317
$240,023
$244,823
$1,177,044
Equity Beginning
$493,590
$503,462
$513,531
$523,802
$534,278
$544,963
2,620,035
TOTAL AVAJLABLE 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
1 48,236
$49,201
$50,185
$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
so
$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
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
1, 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
4� M/-14VW)- -
CleWof the RedevelopmenVAgency
of the City of Huntington Beach, CA