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HomeMy WebLinkAboutBiennial Public Hearing - 12/6/93 Review of Redevelopment P PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. County. of Orange ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and published in the City of Huntington i PUBLIC NOTICE Beach, County of Orange, State of PUBLIC NOTICE California, and that attached Notice is a NOTICE OF PUBLIC HEARING true and complete copy as was printed NOTICE OF NI THE.BIENNIAL and published in the Huntington Beach PUBLIC HEARING OF THE ACH and Fountain Valley issues of said HREDEV TOPMENT REDEVELOPMENT newspaper to wit the issue(s) of: AGENCY TO REVIEW THE REDEVELOPMENT PLAN FOR EACH REDEVELOPMENT November 4, 13, 18, 25, 1993 ITSOJURISDICTION I NOTICED IS HEREBY GIVEN that the Huntington Beach Redevelopment Agency will hold its bien- nial public hearing pursu- ant to the requirements of Section 33348.5 of the Cali- fornia Health and Safety I declare, under penalty of perjury, that Code on Monday, Decem- ber 6, 1993, at 7:00 PM,or the foregoing is true and correct. soon thereafter as the mat- ter may be heard, in the Council Chambers, .Hun- tington Beach City Hall„ 2000 Main Street, Hun tington Beach, California, Executed on November 25 , 199 3 92648, for the purpose of reviewing the redevelop-1 at Costa mesa, California. mentPlanforeachredevel-I opment project in the City! of Huntington Beach and evaluating its progress. Any person organization interested In expressing an opinion on this matter is In- vited to attend the public hearing and offer testi- mony. Dated this 3rd day of No- 'G/' vember,1993 Z By: Connie Brock- Signature way'clerk Published Huntington Beach-Fountain Valley. In- dependent November 4, 13,18,25,1993 111.396 i r REQUEST FOR REDEVELOPMENT AGENCY ACTION ED- 93- 47 Date: December 6, 1993 Submitted to: Honorable Chairman and Redevelopment Agency Members Submitted by: Michael T. Uberuaga, Executive Directo I Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development Subject: CONDUCT THE REDEVELOPMENT AGENCY BIENNIAL HEARING AND APPROVE BIENNIAL REPORT Consistent with Council/Agency policy? f Yes [ ] New Policy or E i '1t '1,1t l cll'Y CW. Statement of Issue,Recommended Agency Action,Analysis,Funding Source,Alternafly4 Actions,Attachments r _ Statement of Issue: The Redevelopment Agency of the City of Huntington Beach is required by-the Caltfornia ealth and Safety Code (section 33348.5)to hold a biennial public hearing to review the progress made in its redevelopment project areas. Recommended Agency Action: 1. Conduct the biennial Public Hearing pursuant to Health and Safety Code (Section 33348.5). 2. Approve Agency goals for Fiscal Years 1993/94 and 1994/95. 3. Approve the biennial report and authorize distribution. Analysis: California Redevelopment Law (Health and Safety Code Section 33348.5) requires that the Redevelopment Agency conduct a public hearing biennially. The purpose of the public hearing is to review the progress the Redevelopment Agency has attained in each of its project areas during the preceeding two year period, to provide a forum to receive comments from the public and to establish goals for the next two years. This public hearing is for the 1991-1993 period. Attached is the Biennial Report 1991-1993,which reviews the two year progress made in the five redevelopment project areas: Main-Pier, Yorktown-Lake, Oakview, Huntington Center, and Talbert-Beach. The report presents the Agency's goals for 1993-95, which are reiterated in Attachment 1. Listed below is a summary of several Agency accomplishments during the biennium for each project area: Main-Pier ❖ Abdelmuti DDA approved for 47,000 square foot building, Ocean Promenade building under construction ❖ Main-Pier(Coultrup) DDA approved- reconstruction of existing buildings along Main street and demolition and reconstruction of commercial along PCH and construction of 80 residential units on second block. 2 ❖ Commenced construction of the Trainer building, 17,550 square feet devoted to 9,100 square feet of restaurant, 4,250 of retail and 4,200 of office space. ❖ Continued leasing in Town Square ❖ Constructed Main-Street Improvements providing special pavement textures, lighting, landscaping, and benches. ❖ Conducted 38 Driftwood mobile home buyouts during this period and subsequently sold the units resulting in their removal from the park. Yorktown-Lake ❖ The Huntington Classics project completed 63 of the 86 single family detached homes in the project area. ❖ Continued loan payment on the acquisition of a Civic Center parking parcel from Civic Center Partners (developer of the Huntington Classics). Oakview ❖ Approved amended DDA with Phil Zisakis,National Auto Glass to allow for an expansion of this facility to 12,300 square feet. ti• Continued the LOGOS, Rehabilitation Loan, and Code Enforcement Programs Huntington Center ❖ Approved the creation of a Business Improvement District for the Auto Dealer Association ❖ Constructed the 85 foot electronic readerboard sign ❖ Approved Berge DDA for a lease-option for future development ❖ Approved transportation improvements for Center Avenue &Edinger Avenue Talbert-Beach ❖ Approved Seaview Village project (38 townhomes)DDA. ❖ Assembled several small illegal lots to make the Seaview Village project possible. All public notification requirements have been met to hold this public hearing on this date. Notice of this hearing was published pursuant to section 6063 of the Government Code and was posted in at least four permanent places within each project area for a period of three weeks. The publication and posting requirements were completed not less than 10 days prior to this hearing. Funding Source: Not Applicable Alternative Actions: 1. Do not hold the Public Hearing at this time. Attachments: 1. Agency Goals 2. Biennial Report ATTACHMENT 1 REDEVELOPMENT AGENCY GOALS 1993-95 MAIN-PIER REDEVELOPMENT PROJECT AREA 1. Achieve City and Coastal Commission approval of Downtown Specific Plan, Parking Master Plan and In-Lieu Parking Fee. 2. In conjunction with developer, create development scheme for next phase of The Waterfront and seek approvals. 3. Commence construction of: • Main-Pier Phase II (Coultrup) • Third Block West • South Beach Improvements • Pier Plaza • New Maxwell's Restaurant And complete construction of: • Oceanview Promenade (Abdelmuti) • Trainer Commercial Building • Art Center 4. Complete sale of Town Square Commercial. 5. Continue to pursue redevelopment of Southeast corner of Main Street and Walnut Avenue, including street dedications. 6. Investigate owner interest in renovation of Atlanta-Beach shopping center. 7. Cooperate and assist in the leasing of new commercial and office space. 8. Complete renovation and leasing of 438 Main Street. 9. Prepare plan to meet Housing requirements (see Affordable Housing section). HUNTINGTON CENTER REDEVELOPMENT PROJECT AREA 1. In conjunction with owner, prepare a market strategy for the Huntington Beach Mall. 2. Complete construction of: • Orange County Transit Authority Transportation Terminal. • Center Avenue improvements and traffic signal. • Reader board sign. 3. Complete Public Utilities Commission review of Gothard-Hoover connection and freeway overpass, and if approved, finish drawings and specifications. 4. Seek adoption of Edinger Avenue Specific Plan of Street Alignment. OAKVIEW REDEVELOPMENT PROJECT AREA 1. Continue the Housing Rehabilitation Program with a production goal of 30-40 units annually. 2. Continue the Housing Code Enforcement Program. ATTACHMENT 1 3. Review Oakview Neighborhood Plan and update recommendations as appropriate. TALBERT-BEACH PROJECT AREA 1. Implement the provisions of the Disposition and Development Agreement with Sassounian Capital Ventures, Inc., for the construction of 38 condominiums. 2. Implement second trust deed program for twenty-five units in Seaview Village. 3. Continue to support and maintain the Emerald Cove senior housing project. 4. Monitor maintenance requirements of public infrastructure. YORKTOWN-LAKE REDEVELOPMENT PROJECT AREA 1. Monitor completion of Huntington Classics, private single-family home development. 2. Pursue acquisition of five single-family lots for affordable housing project (see Affordable Housing Set-Aside Implementation Section). HOUSING SET-ASIDE IMPLEMENTATION Main-Pier Area 1. Develop an in-lieu fee program to permit smaller projects in redevelopment areas an alternative to building required affordable units on site. 2. Secure approval of affordable housing plan for Main-Pier Phase H(Coultrup) project. 3. Negotiate in-lieu fee agreement for the ten unit TNR project at 500 Lake Street in the Main-Pier area. 4. Complete architectural and financial feasibility analysis of five potential gffordable housing sites. Oakview Area 1. Complete negotiations and commence construction for the rehabilitation of thirteen units at 17171 Elm. 2. Continue the Rehabilitation Loan Program with a goal of 30-40 units annually. Talbert Beach Area 1. Continue to support and maintain the Emerald Cove senior housing project. 2. Monitor and support construction of Seaview Village Project. 3. Prepare second trust deed program documents for use in Seaview Village project. Yorktown Lake Area 1. Complete architectural and financial feasibility analysis of five single-family lots. 2. If analysis is favorable--complete acquisition, design and entitle project. Commence construction. Housing Outside Project Areas: 1. Monitor initial lease-up of Five Points Senior Villas project, provide loan and grant funds as called for in the Affordable Housing Agreement. 2. Assess financial feasibility of Set Aside funds for assistance to low-income buyers in the Brisas Del Mar project. 2 ATTACHMENT 1 3. Complete negotiations and secure City Council/Redevelopment Agency approval of agreement for the rehabilitation of the 36 unit Utica Apartments project. Arrange financing and start construction. 4. Seek approval of Exclusive Negotiation Agreement, for the two to four unit Habitat for Humanity project. Negotiate and seek approval of Disposition and Development Agreement Design and entitle project. FINANCIAL GOALS: 1. Continue to reduce the Agency's debt to the City's General Fund by cash payments. 2. Explore the feasibility of transferring real property not needed by the Agency for its programs to the City to further reduce the Agency's debt to the General Fund. 3. Stimulate future increases in revenue by proceeding with construction of approved projects (e.g. Phase H and Third Block West) and by planning and procuring approvals for new projects. 3 Ilk t CITY OF HUNTINGTON BEACH REDEVEEOPMENT AGENCY BIENNIAL REPORT 1991 1993 I i • CITY OF HUNTINGTON BEACH REDEVELOPMENT AGENCY BIENNIAL REPORT 1991-1993 GRACE WINCHELL Chairperson LINDA MOULTON-PATTERSON Vice-Chair Members RALPH BAUER VICTOR LEIPZIG EARLE ROBITAILLE JIM SILVA DAVE SULLIVAN MICHAEL T.UBERUAGA City Administrator/Executive Director BARBARA A.KAISER Redevelopment Director Prepared by:Department of Economic Development LADIES AND GENTLEMEN, The last two years have been a period of continued growth and accomplishment for the Redevelopment Agency. In the downtown, the beautiful new pier was opened to rave reviews — and to over 500,000 celebrants. The Main-Pier area is booked year-round with special events and, despite a difficult economy, major buildings are under construction with commercial space fully leased before completion. Downtown has just begun to show its promise — a place renewed, a place to meet the needs of residents and visitors alike for years to come. In Huntington Center, remodeling of the mall began. As the city regrets the news that the J.C. Penney store in the mall will close in late 1993, the mall's owners and Agency staff are investigating ways to enhance its position in the retail industry. Meanwhile, the Burlington Coat Factory opened on Edinger; the readerboard sign (co-sponsored with the Huntington Beach Auto Dealers Association) was installed adjacent to the San Diego freeway; and planning for major new road improvements progressed. Shortly after the close of the biennium, the Agency approved a Disposition and Development Agreement (DDA) with Sassounian Capital Ventures, Inc. calling for construction of condominiums, including affordable housing, on the last vacant parcels in the Talbert-Beach Project Area. Construction continued on the Huntington Classics in the Yorktown-Lake Project Area — these 86 homes will complete this project area. In the Oakview Project Area a DDA with an existing business,Phil Zisakis,was approved. It is a testament to the strength of Huntington Beach that our project areas continue to attract significant new investment. I am pleased to present the details of our progress in the pages that follow. Sincerely, � Grace Winchell,Chairperson TABLE OF CONTENTS MISSION STATEMENT 0 MAIN - PIER PROJECT AREA HUNTINGTON CENTER PROJECT AREA OAKVIEW PROJECT AREA TALBERT- BEACH PROJECT AREA YORKTOWN - LAKE PROJECT AREA AFFORDABLE HOUSING PROGRAM FINANCIAL SUMMARY The California Health and Safety Code charges redevelopment agencies with renewing areas that are `...a serious physical, social, or economic burden on the community..."(Section 33030). For the Redevelopment Agency of the City of Huntington Beach it is more. It is the rebuilding and enhancement of the economic centers of the community to assure a prosperous future. It is the provision of choice to the city's residents: choice in housing, shopping, employment, in business or recreation. It is equal opportunity housing; by type of unit and tenure—for all income groups. It is forging a partnership with private enterprise and citizens at large to create and maintain a viable, vibrant community that participates fully in the economic future of the region while assuring the quality of life so prized by its residents. �\\� Edwards Q__ - � I � i - T_ � I � - MAIN-PIER REDEVELOPMENT PROJECT AREA would occupy most of the remaining space, The biennial period in the Main-Pier previously Pepper's Restaurant.This will leave Redevelopment Project Area was marked by approximately 2,900 square feet of this continued progress despite a difficult ground floor unleased. environment for commercial growth—at the Next door at Pier Colony all of the 130 close of the period two major new buildings condominium units were sold.In March 1993, were under construction.The biennium also the project owner conducted an auction of marked the completion of the downtown's those units which remained unsold.The new landmark pier at a cost of nearly$12 auction resulted in commitments for all million which was celebrated by the"Pierfest" units,and sales were at prices between in July of 1992—so popular it will become an $135,000-$415,000—approaching the annual event.Major progress was made on original asking prices. the Main Street improvements providing In Main Promenade(on the east side of the special pavement textures,theme lighting, second block of Main Street),the original landscaping,benches and fountains along tenants remain in the 32,000 square feet of Main Street throughout the core. commercial space owned by Robert Koury and Other progress within the six block fronting the 830 space parking garage.The downtown core... Agency leased 3,600 square feet at the corner In the Pierside Pavilion(located on the east of Walnut Avenue and Main Street in this side of Main Street at Pacific Coast Highway) project as a temporary relocation site for Edwards Cinema was selected as a new Jack's Surfboards.The Agency lease will operator to replace Mann Theaters for the six survive the relocation of Jack's back to its plex,1,750 seat theaters.One office vacancy original location.At the close of the period, occurred and one of the initial Pacific Coast staff analyzed whether to solicit an Highway frontage tenants was lost and appropriate sub-tenant or assist the project subsequently replaced by a new Subway owner in selecting a new tenant to replace Sandwich and a T-shirt shop. the Agency. Of greater concern was the loss during the The Agency successfully defended itself period of Pepper's Restaurant and the against a lawsuit at Third Block West brought attendant night club.The night club space was by the remaining property owners who remodeled and released by On The Break alleged that the project had undergone Grill,a billiards parlor with full bar service insufficient environmental review and was not and light food service.At the close of the consistent with the Downtown Specific Plan. period,a potential tenant was processing an The court found in the Agency's favor in early entitlement request for a karaoke bar which 1993,and the plaintiff did not appeal. 3 w�� . ��i�uueurru III m, lilt i a s � p a ; gof � i Meanwhile,as part of the construction of the improvements and another one million dollars Main Street improvements in this section of to assist owners in this block to either build Main Street,an underground tank was new structures or remodel existing ones.This discovered which required the city to investment along with public improvements undertake some immediate remediation to stimulated many of the restaurant uses remove contaminated soil.As a result,the located in the block to expand their County of Orange determined that the City operations to outdoor dining.Only two was the"responsible party'to undertake buildings within the block remain remediation of these hazardous materials in unrefurbished.The Agency is the owner of an the public right-of-way and on the adjacent approximately 5,000 square foot lot fronting private property.At the close of the period, Fifth Street which is vacant. Agency Counsel was working to gain access to A major new landmark is under construction the privately held land for additional testing. at the west corner of Main and Pacific Coast Remediation of the hazardous materials must Highway:the Oceanview Promenade, be completed and acquisition of the last developed by the Abdelmuti Development remaining privately owned parcels must be Company.Construction began in January accomplished before construction of the full 1993 an the approximately 47,000 square block,mixed-use project consisting of 68 foot building which will also include over condominiums and 19,000 square feet of 6,500 square feet of outdoor decks.The commercial space may commence. ground floor,new home of Jack's Surfboards, is due for completion in September 1993,and leasing of the other commercial space is progressing well.Tenants already signed are Bagelmania,Cafe Classico,a chicken/fish takeout restaurant,and Burger King.Only one commercial space remains unfilled.Rents Demonstration Block for the Main Street frontage range from In the Demonstration Block(west side of Main $3.25 to$4.50 per square foot triple net with Street Second Block)the last new major the Pacific Coast Highway frontage at 53.00 a construction is under way in the"Trainer" square foot triple net.The Redevelopment Building.This two story structure will include Agency acts as construction lender providing 17,550 square feet and will be devoted to the$3.5 million to complete construction.The 9,100 square feet of restaurant,4,250 Agency will also guarantee rents on the office square feet of retail and 4,200 square feet of space when it is complete,either referring office.Previously,the City and Agency spent tenants or paying the owner for the vacant up to$750,000 in Community Development space at a minimum of$1.55 per square foot. Block Grant Funds to provide public 5 e N u A.: > s,.} sn� a s , h z At the end of the biennium a public hearing were reminded of the procedure to qualify for was scheduled on a proposed Disposition and the annual buyout program in the fall of Development Agreement(DDA)for the Main- 1992.Those qualifying were included in a Pier Phase II(Coultrup)project incorporating lottery in February 1993 to select the ten the balance of the Abdelmuti block and a units to be acquired in 1993(because no second block at 5th Street and Pacific Coast acquisitions were made in some previous Highway.The proposed DDA calls for the years,the Redevelopment Agency acquired a reconstruction of existing commercial total of 38 units in Driftwood through the buildings along Main Street,demolition and course of this biennial period).Units acquired reconstruction of commercial are auctioned to the public with the requirement buildings along Pacific Coast that the purchasers remove them from Highway,and the construction of Driftwood within 30 days.The site will be the t� owl 80 residential units in the second location of future phases of The Waterfront,a block.The Redevelopment commercial and residential project. Agency is to provide financing In April 1993, The Waterfront Hilton Beach The Waterfront Hilton subsidies,relocation assistance and a land Resortfiled for bankruptcy protection under writedown if the project proceeds or Chapter Eleven of the Bankruptcy Code.This reimbursement of developer's costs totaling action was in response to the hotel's lender, about$350,000 if the project does not proceed. The Dai-Ichi Kangyo Bank,Ltd.,filing a Notice Further along Main Street in the Town Square of Foreclosure.At the end of this biennium, Project the Agency's partner in the 10,000 owners of the hotel stated an intention to square feet of commercial space,the reaffirm the lease with the Redevelopment Resolution Trust Corporation,ordered an Agency for the hotel site.Special Agency appraisal of the space.Currently,4,600 Counsel was retained to represent the Agency square feet of the space is leased at$1.55 and the City through the course of the per square foot triple net for five years.Once bankruptcy proceedings.In the meantime,the the appraisal is complete,the Resolution Trust Hilton remains open and available for use by Corporation and the Agency intend to seek a visitors and the community with strong buyer and divide the proceeds of the sale on a occupancy and room rates. pro rata basis,representing the two-thirds In the spring of 1993,the City Council ownership by the Redevelopment Agency and approved a construction contract for one-third by the Resolution Trust Corporation. renovations to the 11,000 square foot former Meanwhile,outside the core the Agency Edison building which will become the new continued its efforts to clear the Driftwood Huntington Beach Municipal Art Center.The Mobile Home Park.As provided in the 1988 renovation will create gallery space,public relocation agreement,tenants in the park 07 )e zz u u V"V u"V 1�,"U mmmmm m �mmmm OU1]D0 O OU m 1l m[E UU[l[E m m 1 MIE ���mmmm ���m� mm0000mmmm 1E DO UU 1E lfl[E OU DO UU[E[E[0[E 1E PH II''11�1II''®g'II1F'',yPHMPpyP v�(��n�1�LJ LJ py LJ ppyPH py PH L AU J 0 0 �Dy >[O F O s.[D ROAD, :: a PACIFIC COAST HIGHWAY C PACIFIC COAST HIGHWAY U HUMINGTON BEACH MUNICIPAL BEACH l c U D. U L. a PACIFIC OCEAN PACIFIC OCEAN C meeting space,a studio for visiting artists, Project Goals for 1993-95 museum shop,restroom and kitchen facilities. I Achieve City and Coastal Commission The program will focus on the work of living approval of Downtown Specific Plan,Parking artists and include a strong educational Master Plan and In-Lieu Parking Fee. component in conjunction with local schools. The Municipal Art Center will open in 2 In conjunction with developer,create early 1994. development scheme for next phase of The Waterfront and seek approvals. In April 1991,the City launched the South Beach Improvement Task Force.This 3 Commence construction of: committee,composed of City residents, •Main-Pier Phase II(Coultrup) consultants and City staff,assessed conditions •Third Block West on the City beach between the Municipal Pier •South Beach Improvements and Beach Boulevard.After a number of •Pier Plaza months of deliberation,the committee •New Maxwell's Restaurant presented a series of recommendations for And complete construction of: the renovation of this beachside area calling •Oceonview Promenade(Abdelmuti) for reconfiguration of existing parking, •"Trainer'Commercial Building realignment of a bicycle path and the •Art[enter separation of pedestrian and bicycle traffic, a Complete sale of Town Square Commercial. refurbishment of existing concession buildings,new public restrooms and showers, 5 Continue to pursue redevelopment of and significant new landscape—highlighted Southeast corner of Main Street and Walnut by tall Washingtonia palms illuminated at Avenu-,including street dedications. night.The Task Force also reviewed 6 Investigate owner interest in renovation of alternative plans for Maxwell's Restaurant Atlanta-Beach shopping center. and the Pier Plaza.It recommended that Maxwell's be demolished and reconstructed in 7 Cooperate and assist in the leasing of new its current location and a simple Pier Plaza commercial and office space. area incorporating a basque of palms and a 8 Complete renovation and leasing of water feature be provided at the top of 438 Main Street. the pier. 9 Prepare plan to meet housing requirements Project Area Size:336 acres (see"Housing Set-Aside Implementation" Adoption Date:September 1982 section). Amended:September 1983 Life of Plan:35 Years Tax Increment Cap:$15,250,000 annually 9 yam. °° �. . . . . . . . , v . The Huntington Beach Mall HUNTINGTON CENTER the biennial period the 85 foot tall REDEVELOPMENT PROJECT AREA readerboard sign was installed and is During the period redevelopment staff undergoing testing.The sign carries the city's continued discussions with MaceRich,owner of logo above the readerboard panel and the the Huntington Beach Mall.In early 1993,it logo of the represented auto dealers below was announced that the 180,000 square foot the panel.The panel itself carries over 5,000 J.C.Penney store would be vacated.The move lights;messages will be computer was prompted by negotiation for two new J.C. programmed and may include writing of Penney stores in major regional malls various sizes,moving text,flashing text,or elsewhere in the county.The move represents graphics.Twenty percent of the message time significant tenant loss to the mall owners and will be devoted to public service messages. a significant sales tax loss to the City and has The sign will cost$361,000.The Auto Dealer prompted the commencement of a strategy to Association contracted to reimburse the City significantly reposition Huntington Beach for$261,000 of this cost from increased Mall.While the strategy is in preparation, sales tax revenue. MaceRich is undertaking interior modifications In May 1993,the Agency approved a to the mall which include new ceiling Disposition and Development Agreement treatment,new skylights,and new air (DDA)with Orin G.Berge,Jr.for a lease- conditioning.Cost of the immediate option of up to four parcels totaling 3.8 acres renovation is expected to be approximately of Agency-owned land originally acquired to $3 million. facilitate the realignment of Gothard and Hoover streets.The transaction is unique in that it contains land both inside and outside the project area and provides the developer up to ten years to determine the use of the parcels and procure entitlements. In October 1992,the Burlington Coat Factory opened on the southside of Edinger in the Readerboard Sign Huntington Center Redevelopment Project In September 1992,twelve auto dealers from Area.Burlington took over and remodeled an the City of Huntington Beach created a existing building to suit its needs.Annual sales Business Improvement District with the of the facility are estimated to be$10 million; specific and sole purpose of providing a generating$100,000 in sales tax revenues to readerboard sign near Beach Boulevard and the City.The 45,000 square foot store also the San Diego(1-405)Freeway.At the end of created 100 new jobs for the community. McFADDEN AVE. �w NOT TO$CALE NOT A PART 40sf HUNTINGTON VILLAGE WAY CENTER DRIVE C a O c N a a HUNTINGTON BEACH MALL I �p � 2 N a (0 EDINGER AVE. 2 5 = a N 6 -ALDRICH.AVE. Huntington Center Project Area Also within the Huntington Center Project Size:160 acres Redevelopment Project Area a number of Adoption Date:November 1984 transportation improvements were approved Life of Plan:35 years or under construction during the period.A Tax Increment Cap:$84.5 million contract for Center Avenue improvements was approved by the City Council which calls for Project Goals for 1993-95 minor widening,restriping,repaving and the installation of a new traffic signal at the t In conjunction with owner,prepare a market Center Avenue entrance to the Huntington strategy for the Huntington Beach Mall. Beach Mall.A plan for widening and 2 Complete construction of: relandscaping of the Edinger Corridor through . Orange County Transit Authority the project area was completed during the Transportation Terminal biennium but was shelved until sufficient . Center Avenue improvements and funding for right-of-way acquisition and traffic signal improvement is found.At the end of the . Readerboard sign period the McFadden Overcrossing was pending before the Public Utilities s Complete Public Utilities Commission review Commission.The PUC conducted a hearing on of Gothard-Hoover connection and freeway the Gothard-Hoover Connection in May.The overpass,and if approved,finish drawings PUC decision was still pending at the close of and specifications. the biennium. 4 Seek adoption of Edinger Avenue Specific The Orange County Transportation Authority Plan of Street Alignment. was active in the Huntington Center Project Area with the construction of its new Transportation Center.This facility located at Gothard Street and Center Avenue will include 118 parking places to service nine bus routes within the county.It is expected that 57 buses will use the facility on a daily basis.The Transportation Center will be completed in spring 1994. 13 �' 41 — *r 9 Y .`'fir il �`� •� � w National Auto Glass WARNER AVE. FIR DRIVE SYCAMORE AVE. Q$5 BELSRO DR. OAKVIEW CYPRESS AVE. PARK CYPRESS AVE. N = Y N sNs Z � N 7 Q ^ OAKVIEW � . MANDRELL DR. gnsnH tips SCHOOL S NOT TO SCALE BARTON DR. Y z � 5 Wwsoow os. a a c L F RAM.AVE. —1 FJ Oakview Project Area A _ L OAKVIEW REDEVELOPMENT PROJECT AREA The LOGOS Program was also reorganized During the biennium the multi-story Guardian during the period.Responsibility for Center located at the southwest corner of supervising this program,which employs Beach Boulevard and Warner Avenue was sold youths to remove trash and graffiti,was by the Resolution Trust Corporation(RTC)for reassigned to the Public Works Department. $21 million.LIU,Inc.is the new owner of the The efforts of the program will expand building.At the end of the biennium staff was beyond the Oakview Project Area to the City's negotiating with LIU for the disposition of an other neighborhood enhancement areas adjacent Agency owned parcel of.25 acres to sponsored through the Community be incorporated into the site plan of the Development Block Grant Program((DBG). mixed use center for additional parking. Through the Community Development Block Next door to the Guardian Center,the Grant Program the City sponsors a Code Leonard Lichter Office Building was expanded Enforcement Program to closely monitor during the period and benefited from exterior building and housing codes within the area. remodeling which makes it architecturally There were 712 active cases processed in compatible with surrounding buildings.This 1991-92,and 648 in 1992-93. was done without Agency intervention. Also under the CDBG Program,the City The Agency also approved an amended continues its Rehabilitation Loan Program, Disposition and Development Agreement completing 40 residential units over the two (DDA)with Phil Zisakis, year period at a cost of over$440,000. owner of National Auto Project Area Size:68 acres Glass.The Agreement Adoption Date:November 1982 provided for the use of Amended:July 1989 Agency owned property Life of Plan:35 years I �y for parking that would Tax Increment Cap:$90 million allow expansion of the LOGOS Students existing automobile glass business to 12,300 Project Goals for 1993-95 square feet.This expansion also provided the opportunity for this facility to link t (ontinue the Housing Rehabilitation Program architecturally with the adjacent office with a production goal of 30-40 units annually. building.The amended DDA was approved on 2 Continue the Housing(ode Enforcement May 18,1992 and required the developer to Program. pay$48,000 for the parking rights to be 3 Review Oakview Neighborhood Plan and offset by improvement costs of the fifteen spaces. update recommendations as appropriate. 15 � Jot- kJw Seaview Village { v i T AUWW AVE. 2 aa FSSFJI DP. 2 m � 9 O F x IIIHAPPY DR. PARKIREE CIRCEE Q-J�EJ, QPV TERRY NOT TO SCALE PARK TAYLOR DR. Talbert-Beach Project Area TALBERT-BEACH PROJECT AREA Project Area Size:25 acres Just after the close of the biennial period a Adoption Date:September 1982 Disposition and Development Agreement Life of Plan:35 years (DDA)between the Redevelopment Agency Tax Increment Cap:$350,000 annually and Sassounian Capital Ventures,Inc.for the Seaview Village project was approved.The agreement calls for the developer to construct 38 townhome style condominiums arranged in a motor court configuration of two stories over enclosed garages.The Agency owns an t adjacent site of.72 acres and under the terms Emerald Cove Senior Housing Project of the agreement would sell this parcel at market value to the developer for Project Goals for 1993-1995 consolidation in this project.The Agency would i Implement the provisions of the Disposition also be obligated to provide up to$750,000 and Development Agreement with Sassounian in Housing Set-Aside funds to provide second Capital Ventures,Inc.,for the construction of trust deeds for moderate income buyers of 25 38 condominiums. of the units. 2 Implement second trust deed program for 25 The developer acquired its holdings from the units in Seaview Village. previous Collins-Zweibel partnership.The developer now controls not only the property 3 Continue to support and maintain the subject to the DDA but also an adjacent parcel Emerald Cove senior housing project. which will accommodate an additional 42 4 Monitor maintenance requirements of public units of the some design making for a total of infrastructure. 80 units. The Agency was instrumental in assembling a number of small illegal lots in the area that has made development possible. Completion of this project will represent full build out of the Talbert-Beach Redevelopment Project Area. 17 .�..�+... 4, The Huntington Classics YORKTOWN AVE. 3? NOT TO SCALE V CIVIC CENTER 4VICHITA.AVE . N Q� QP VENICE:AVE. N N N a Z ga a UTICA AVE. 1� 1 Yorktown-Lake Project Area 14 - YORKTOWN-LAKE To address its obligation to provide REDEVELOPMENT PROJECT AREA affordable housing in this project area,the Construction continues on the Huntington Agency commenced negotiations with Civic (lossics project approved for 86 single family Center Partners to acquire five single family detached homes.At the end of the biennium, lots approved as part of the Huntington 63 of the units were completed,ten were Classics Project,located at the southeast under construction,and an additional eight corner of Yorktown Avenue and Lake Street. were yet to be started;and five lots were The site is proposed for a senior citizen being considered for acquisition by the housing project of approximately twenty units Agency.Prices on some models were reduced for households of low and very low income,in to$380,000,and this will impact the future compliance with the requirements of tax increment generated in the Yorktown- redevelopment law(also see"Housing Set- Lake Project Area. Aside Implementation'herein). Project Area Size:30 acres ` Adoption Date:September 1982 Life of Plan:35 years Tax Increment Cap:$250,000 annually Project Goals for 1993-95 l Monitor completion of Huntington Classics, private single-family home development. The Huntington Classics The Agency continues to use tax increment to 2 Pursue acquisition of five single-family lots pay for the acquisition of land from the Civic for affordable housing project(see"Housing Center Partners(developer of the Huntington Set-Aside Implementation"section). Classics Project)which was used for the parking expansion of the Civic Center site. A combination of land exchange and cash from tax increment is being used to finance the acquisition and payments should be complete by fiscal year 1994-95. 19 r��� , y z . / ^ . <#y® . Ae Points Se ir Villas F11- UF -1-V _V_ Ir --1 9- _11LY _'k'Y I_9 -I_r- -I —tr _Uff- HOUSING SET-ASIDE IMPLEMENTATION Project Status.The Redevelopment Agency Introduction successfully defended itself in a lawsuit The California Health and Safety Code challenging the approval for the Third Block requires that Redevelopment Agencies"set West project.This decision was appealed but aside"twenty percent of all tax increment the appeal was later abandoned.The Agency collected exclusively for the use in assisting is pursuing hazardous materials studies and affordable housing.In Huntington Beach, other preliminary work,but no construction approximately$1 million a year accrues as start date has been established for the project. new housing set-aside funds.At the close of Main-Pier Phase It((oultrup) the biennium there was approximately$3.8 The Agency concluded negotiations of an million accumulated in the fund.The following agreement for reconstruction of existing are the projects under contract or in commercial structures and the construction of negotiations for use of these funds in each 80 new residential units in two blocks along project area as well as projects outside the Pacific Coast Highway west of Main Street project areas. (blocks 104 and 105).State law requires twelve units of affordable housing be MAIN-PIER PROJECT AREA produced as part of the project. Third Block West Project Status:The project was approved by The Agency previously approved the the Redevelopment Agency and Disposition and Development Agreement implementation is dependent upon approval (DDA)with Newcomb/Tillotson Development, of a Downtown Master Parking Plan by the Inc.for the provision of a major mixed use City Council and California Coastal project in the 300 block on the west side of Commission.The earliest construction start Main Street.This project incorporates date is anticipated for fall 1994.The commercial and office uses along the Main minimum fifteen percent of affordable Street frontage(including a grocery market) housing for the project is still in negotiations and 68 residential units on the Fifth Street and off site locations are being considered. side.One of the provisions of the DDA calls 500 Lake Street for the Redevelopment Agency to commit up As a condition of the approval of entitlements to$825,000 in housing set-aside funds to for this ten lot single family home subdivision assist first time moderate income buyers for in the 500 block of Lake Street,the Planning up to 33 of the units in this project. Commission requires provision of two affordable units. 21 Project Status:Demolition and clearance of Project Status:The Agency staff,economic the site has begun.The project developer consultant and developer continue (TNR,Inc.)has agreed to pay$25,000 per negotiations on the amount and terms of unit in-lieu of building affordable Redevelopment Agency assistance. units on-site. Scattered Sites Agency staff along with Thirtieth Street Architects is reviewing five independent sites in the Main-Pier Redevelopment Project Area to determine the potential of these sites for affordable housing.A sixth site will be reviewed by another architectural firm specializing in the design of single room Grading Site for Seaview Village occupancy(SRO)residential buildings. TALBERT-BEACH PROJECT AREA Project Status:The contract with Thirtieth Seaview Village Street Architects is approved.It is anticipated At the end of the fiscal year,the Agency staff that analysis of the sites will require up to ten negotiated a Disposition and Development weeks.Site acquisition may be initiated Agreement(DDA)between the Agency and following completion of the analysis. the owner of the remaining vacant land in this project area:Sassounian Capital Ventures,Inc. OAKVIEW PROJECT AREA The agreement calls for the construction of 38 townhome units(an additional 42 will be 17171 Elm Street To satisfy the conditions to provide affordable provided on an adjacent site owned by the housing units placed on a new construction developer but not a subject of the DDA).The project located outside the project area,the agreement calls for the Agency to sell its.72 developer is contemplating acquisition of the acre site to the developer for incorporation in 13 units in three buildings at this location. the project and for the commitment of up to The site is located within the Oakview S750,000 in Agency housing set-aside funds t Redevelopment Project Area.The Agency has o assist 25 moderate income households to an interest in providing housing set-aside purchase units in the project. funds to write down the developer's purchase Project Status.-The DDA approved July 1993. price of the units in exchange for restrictive Construction to start fall 1993. covenants on all of the units for low and very low income households. YORKTOWN-LAKE PROJECT AREA PROJECTS OUTSIDE During the course of the year,staff REDEVELOPMENT PROJECT AREAS investigated amending the Yorktown-Lake Five Points Senior Villas Project Area to incorporate additional existing This project is located at Main Street and housing which could be rehabilitated by the Florida Avenue and contains 164 apartments Redevelopment Agency to meet its affordable designed for senior citizens.The housing obligations in this small Redevelopment Agency has secured an redevelopment project area.Also explored Affordable Housing Agreement with the was merging Yorktown-Lake with the Talbert- project's developer,IPI,Inc.,through which Beach Project Area to take advantage of the the Agency agreed to provide$750,000 in surplus of affordable units already provided financial assistance to the project over five in Emerald Cove.At the end of the year,these years in exchange for restrictive covenants alternatives were rejected,and staff pursued being placed on 48 of the units in the project acquisition of five previously sub-divided in order to meet Agency replacement housing single family lots from the Civic Center obligations created in the Main-Pier Partners,Inc.on which the Agency would seek Redevelopment Project Area. to construct a minimum of thirteen affordable units for seniors.This will enable the Agency to meet the fifteen percent obligation for �r i affordable units in the Yorktown-Lake Project Area. Project Status:At year's end,staff requested # ' Agency authority to negotiate a Purchase Five Points Senior Villas Agreement for the five lots.Staff of the Project Status:Construction was completed on Community Development Department along the first 78 units available to rent for seniors. with the Agency's architect also analyzed the The remaining 86 units will be completed by feasibility of construction of up to 25 units on the end of 1993.Currently,62%of the units the site.Acquisition of the site is anticipated are leased. by the end of 1993.A construction start date is not anticipated for 24 months. i 23 ��� Brisas Del Mar considered as potential funding sources for This is a forty-four unit condominium rehabilitation of the units.An amount of conversion project located on Delaware Street 5600,000 is reserved to implement and owned by Beachfront Construction,Inc. this project. The project owner requested that the Habitat for Humanity Redevelopment Agency consider using Agency staff concluded negotiations on an housing set-aside funds to assist low income Exclusive Negotiation Agreement between the households to purchase fourteen of the units Redevelopment Agency and Habitat for in the project. Humanity,Inc.for a housing project located Project Status:At the end of the year,the on the north side of Ronald Drive west of project was about to commence sales.The Beach Boulevard between Talbert and Slater Association of Realtors conducted a series of meetings to inform the public regarding the Community Homebuyers Program provided by Fannie Mae through local lenders. , Redevelopment assistance was undetermined. Utica Apartments ' Within one of the City's neighborhood enhancement areas is a 36 unit apartment project which is severely deteriorated, Brisas Del Mar overcrowded,and suspected as a base for Avenues.The Agency would acquire this illegal drug sales.As part of a former water well site from the city and comprehensive plan to improve this Florida- provide it at no cost to Habitat for Humanity Utica area,the city is looking at several for the construction of two to four possibilities to do substantial rehabilitation of condominium units for purchase by low or the units which are arranged in three two- very low income family households. story buildings on the north side of Utica west Project Status.The Exclusive Negotiation of Beach Boulevard. Agreement will be presented to the Project Status.Community Development staff Redevelopment Agency for approval in the is negotiating with the property owner to fall of 1993 and it provides for up to one year garner cooperation for the rehabilitation of to negotiate a Disposition and Development the project.Redevelopment Agency housing Agreement with Habitat for Humanity.A set-aside funds,HUD's HOME funds,and Phase I report of the site indicated no Community Development Block Grant are all significant environmental hazards exist. Goals for Housing 1993-95 YORKTOWN LAKE AREA MAIN-PIER AREA i Complete architectural and financial I Develop an in-lieu fee program to permit feasibility analysis of five single-family lots. smaller projects in redevelopment areas an 2 If analysis is favorable—complete alternative to building required affordable acquisition,design and entitle project. units on site. Commence construction. 2 Secure approval of affordable housing plan HOUSING OUTSIDE PROJECT AREAS for Main-Pier Phase II((oultrup)project. l Monitor initial lease-up of Five Points Senior 3 Negotiate in-lieu fee agreement for the 10 Villas project,provide loan and grant funds as unit TNR project at 500 Lake Street in the called for in the Affordable Housing Main-Pier area. Agreement. 4 Complete architectural and financial 2 Assess financial feasibility of Set-Aside funds feasibility analysis of five potential affordable for assistance to low-income buyers in the housing sites. Brisas del Mar project. OAKVIEW AREA 3 Complete negotiations and secure City I Complete negotiations and commence Council/Redevelopment Agency approval of construction for the rehabilitation of 13 units agreement for the rehabilitation of the 36 at 17171 Elm. unit Utica Apartments project.Arrange financing and start construction. 2 Continue the Rehabilitation Loan Program with a goal of 30-40 units annually. a Seek approval of Exclusive Negotiation Agreement for the two to four unit Habitat TALBERT BEACH AREA for Humanity project.Negotiate and seek 1 Continue to support and maintain the approval of Disposition and Development Emerald(ove senior housing project. Agreement.Design and entitle project. 2 Monitor and support construction of Seaview Village Project. 3 Prepare second trust deed program documents for use in Seaview Village project. 25 .iw+� ASSESSED VALUES FOR FIVE REDEVELOPMENT PROJECT AREAS* Fiscal Years ."A S125.8 �. S283.6 x f: S3511 q' $384.3 T x •$473.6 $543.0 ..* $633.8 $638.9 " $584.3 100 200 300 400 500 600 Dollars in Millions l,ls of the—d of rh,f rid y�rrl Source:Orange County Office of Auditor-Controller TAX INCREMENT BIENNIAL PERIOD 1991-1993 89/90 90/91 89-91 Biennial 91/92 92/93 Percent Increase Audited Audited Period Total Audliked Onoudit�f in Biennial Periods MAIN-PIER 1,226,250 1,734,886 2,961,136 2,416,748 2,195,608 156% YORKTOWN-LAKE 33,750 177,500 211,250 226984 270,324 * 239% TALBERT-BEACH 238,750 213,205 451,955 263,066 265,701 117% OAKVIEW 1,052,500 933,724 1,986,224 758263 604,188' 69% HUNTINGTON(ENTER 1,322,500 1,993,298 3,315,798 1,586490 1,203,004' 84% TOTALS 3,873,750* 5,052,613' 8,926,363 5,251551* 4,546,825 110% *Audited by KMPG Peat Marwick 6/30/90,6/30/91,6/30/92. Temporary(AP increase of$28,324 due to ERAF payment. Ty - FINANCIAL SUMMARY to$2.789 million for the 1991-93 biennium. According to the Orange County Assessor's Tax increment for the current and past Office,the assessed value for all project areas bienniums by project area is depicted in the in the 92-93 fiscal year increased nearly$6 accompanying table. million—up to$638.9 million.However,the recessionary downturn in real estate values Financial Goals was reflected in the following year by a reduction in assessed value for all project t Continue to reduce the Agency's debt to the areas to$584.3 million—a reduction of over City's General Fund by cash payments. $54.6 million.The primary reason for this 2 Explore the feasibility of transferring real reduction can be attributed to the reassessment property not needed by the Agency for its of two major properties in redevelopment programs to the City to further reduce the areas:The Waterfront Hilton and Guardian Agency's debt to the General Fund. Center.The new value still represents an 3 Stimulate future increases in revenue by increase of over$96 million in assessed value since the end of the last biennium in June proceeding with construction of approved 1991.The change in assessed value for all projects(e.g.Main-Pier,Phase II and Third project areas since 1985-86 is depicted in the Block West)and by planning and procuring approvals for new projects. accompanying graph. Interestingly,in the Main-Pier area new construction and rehabilitation more than compensated for the reduction in the Hilton's value with tax increment at 156 percent over the previous biennium(1989-91). Construction of new homes in the Yorktown- Lake area increased increment two-fold over the previous period,and Talbert-Beach income was up slightly to 117 percent of the 1989-91 period.The reduction in value in the Oakview area was reflected in tax increment which was 69 percent of the previous reporting—down approximately$624,000 over the two years.Huntington Center revenue was also down by about$526,000, from$3.316 million for the 1989-91 period 27 .........ti CITY OF HUNTINGTON BEACH REDEVELOPMENT PROJECT AREAS s 3 s 9 u i n _ BOLSA OJ ❑❑� NOT TO SCALE ❑❑❑ hkfADDFN C ❑❑❑❑ V CEDINGER HUNTINGTON CENTER HFII Q ❑❑❑❑❑❑ WARNER P� ❑❑❑❑OAKVIFW 3 SLATER CENTRAL PARK TSEgFgT TALBERT �F. CENTRAL BOLSA CHICA WETLANDS PARK TALBERT-BEACH ELLIS Z Y GAREIELD 3 9 9EE QZ [_]H[ ❑71ORK-W. p E i YORKTOWNMAIN �i Cf Eq ADANS ti 9 LJ EF1 F1-1 INDIANAPOl15 4J} q} ATlANT4 PIE MAIN-PIER ❑❑❑ ❑D HAMILTON 7 BANNING (: h \ l) \1 I. F1 1) l: 1'1 N1 I.: A T S f ADMINISTRATION MICHAEL T.UBERUAGA City Administrator/Executive Director 1 RAY SILVER Assistant City Administrator ! BARBARA A.KAISER f Director of Economic Development Redevelopment Director STAFF STEPHEN V.KOHLER Project Manager JIM LAMB Project Manager TOM ANDRUSKY Assistant Project Manager KEITH BOHR Assistant Project Manager CAROL A.RUNZEL Development Specialist LISA MORENO Housing Finance Specialist LINDA SURACI Administrative Assistant a SHEILA ROGERS Administrative Secretary JUDY RICHARDS Office Specialist Produced by Robin Caceres-Dujanovic Huntington Beach,CA Al 'Ilk Alk, Oki., Ada n Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach,CA 92648 714.536.5542 Printed:October 1993 • arroreonucrorrare PUBLIC NOTICE NOTICE OF PUBLIC HEARING NOTICE OF THE BIENNIAL PUBLIC HEARING OF THE HUNTINGTON BEACH REDEVELOPMENT AGENCY TO REVIEW THE REDEVELOPMENT PLAN FOR EACH REDEVELOPMENT PROJECT WITHIN ITS JURISDICTION NOTICE IS HEREBY GIVEN that the Huntington Beach Redevelopment Agency will hold its biennial public hearing pursuant to the requirements of Section 33348.5 of the California Health and Safety Code on Monday, December 6, 1993, at 7:00 PM, or soon thereafter as the matter may he heard, in the Council Chambers, Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California, 92648, for the purpose of reviewing the redevelopment plan for each redevelopment project in the City of Huntington Beach and evaluating its progress. Any person organization interested in expressing an opinion on this matter is invited to attend the public hearing and offer testimony. Dated this 3rd day of November, 1993. By: Connie Brockway, Cl For publication: November 4, 13, 18, & 25 PUBLIC NOTICE NOTICE OF PUBLIC HEARING NOTICE OF THE BIENNIAL PUBLIC HEARING OF THE HUNTINGTON BEACH REDEVELOPMENT AGENCY TO REVIEW THE REDEVELOPMENT PLAN FOR EACH REDEVELOPMENT PROJECT WITHIN ITS JURISDICTION NOTICE IS HEREBY GIVEN that the Huntington Beach Redevelopment Agency will hold its biennial public hearing pursuant to the requirements of Section 33348.5 of the California Health and Safety Code on Monday, December 6, 1993, at 7:00 PM, or soon thereafter as the matter may he heard, in the Council Chambers, Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California, 92648, for the purpose of reviewing the redevelopment plan for each redevelopment project in the City of Huntington Beach and evaluating its progress. Any person organization interested in expressing an opinion on this matter is invited to attend the public hearing and offer testimony. Dated this 3rd day of November, 1993. By: - 77 Connie Brockway, Cler PLEASE DO NOT REMOVE THIS NOTICE UNTIL December 6, 1993.