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FY 2007/2008 Annual Report - Huntington Beach Redevelopment
Council/Agency Meeting Held: Deferred/Continued to: App v?,d ❑ Conditionally Approved ❑ Denied City lerk' Signav e ---rCouncil Meeting Date: 4/20/2009 Department ID Number: ED 09-20 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVEL PMENT AGENCY MEMBERS SUBMITTED BY: FRED A. WILSON, EXECUTIVE DIRE PREPARED BY: STAN LEY SMALEWITZ, DEPUTY EXE IVE DIRECTOR SUBJECT: Receive and File: 2007-2008 State Controller Report S�atement Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Section 33080.1 of the State of California Health and Safety Code ("Redevelopment Law") requires that the Redevelopment Agency (Agency) prepare an Annual Report that is sent to the State Controller's Office within 180 days following the end of the public entity's fiscal year. The report for the fiscal year of 2007/2008 is now being submitted to the Redevelopment Agency for formal receipt and filing, prior to the report being submitted to the State Controller's Office. Funding Source: Not applicable. Recommended Action: Motion to: 1. Receive and File the 2007-2008 State Controller's Report. Alternative Action(s): Not Applicable. REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: 4/20/2009 DEPARTMENT ID NUMBER: ED 09-20 Analysis: The Redevelopment Agency is required to annually submit its State Controller's Report to the State Controller's Office (SCO). The report being submitted is comprised of information regarding the Agency's financial transactions, blight progress, as well as loan, property and housing activities for the fiscal year of 2007/2008. A copy of the Agency's audit must be sent to the State Controller as part of the report. Please note that no exceptions or areas of non-compliance were identified in the audit for fiscal year 2007/2008. Staff will also generate an online version of the report which will be submitted electronically to the California Department of Housing and Community Development (HCD). This information is used at the State level to monitor the Agency's activities and report on the progress of redevelopment, affordable housing projects and financing throughout California. During fiscal year 2007/2008 there were two affordable housing projects developed within the Huntington Beach Merged Project area (Oakview neighborhood) and one affordable housing project developed outside of the existing redevelopment project areas (Pacific Court Apartments, 2200 Delaware Street). These projects, together, will provide 56 affordable rental housing units for low and very low income households for 60 years. The Economic Development and Finance Department staff jointly prepared the report which must be received by the Redevelopment Agency. Due to delays at the State level, this year the Agency was granted a 30-day extension resulting in a required submission date of April 30, 2009. Strategic Plan Goal: By making information available to the public regarding the Agency's activities and the progress of redevelopment and affordable housing projects, the Agency is helping to achieve the following strategic goal: "Increase community involvement, dialogue, and outreach by educating residents about opportunities for involvement such as how to donate to projects, volunteer, access information, and offer opinions through the website and other means." Environmental Status: Not applicable. Attachment(s): • - Number Ko. , ® - e • 1. 2007-2008 State Controller's Report (financial transactions and blight progress) 2. Housing Activity Report -2- 4/6/2009 1:46 PM ATTACHMENT # 1 City ®f Huntington Beach 2000 Main Street • Huntington Beach, CA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT B"Illy ..� Business Development • Housing - Real Estate - Redevelopment ,isa ® 714.536.5582 www.hbbiz.com fax — 714.375.5087 April 6, 2009 State Controller's Office Division of Accounting and Reporting Local Government Reporting Section 3301 C Street, Suite 500 Sacramento, CA 95816 Dear State Controller: Enclosed are the following reports as requested by your office: 1. The California State Controller's Financial Report cover form for Community Redevelopment Agencies and Additional Reports for State Controller—Blight Progress, the Loan Report, and Property Report. 2. California's Housing Community Development's (HCD) signature form for Fiscal Year Ended September 30, 2008 (report filed electronically with HCD, April 6, 2009). 3. Bureau of Census survey form. 4. Annual Financial Report (Audited) —Redevelopment Agency of the City of Huntington Beach for the Year Ending September 30, 2008 (2 copies) 5. Statement of Indebtedness for the 2008/2009 Tax Year (debt as of June 30, 2008). If you have questions regarding the enclosed reports, please make contact via the phone numbers listed in the reports. Sincerely, cl�� Stanley Smalewitz Deputy Executive Director Sister Cities: Anjo, Japan o Waitakere, New Zealand REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Entity Name: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Fiscal Year 2009 ID Number: 13983037600 Submitted by: Deputy Executive Director of Redevelopment Agency Signa ur Title Stanley Smalewitz X-cw, Name (Please Print) Date Per Health and Safety Code section 33080.this report is due within six months after the end of the fiscal year.The report is to include two(2)copies of the agency's component unit audited financial statements,and the report on the Status and Use of the Low and Moderate Income Housing Fund(HCD report). To meet the filing requirements,all portions must be received by the California State Controller's Office To file electronically: To file a paper report: 1_Complete all forms as necessary. 1.Complete all forms as necessary. 2-Transmit the completed output file using a File 2.Sign this cover page,and mail complete report to either address Transfer Protocol(FTP)program or via diskette. below with 2 audits and the HCD report- 3-Sign this cover page and mail to either address below with 2 audits and the HCD report. Report will not be considered filed until receipt of this signed cover page. Mailing Address: Express Mailing Address: State Controller's Office State Controller's Office Division of Accounting and Division of Accounting and Reporting Reporting Local Government Reporting Section Local Government Reporting Section 3301 C Street, Suite 700 P. O. Box 942850 Sacramento, CA 95816 Sacramento, CA 94250 State Controller's Office Division of Accounting and Reporting Fax Number: (916)327-3162 2007-08 Redevelopment Reporting Information Order Form Please check the items you want mailed to you. X Automated Financial Reporting Program CD(Instructions included on CD) Redevelopment Paper Reporting Forms(including U.S. Bureau of Census form) Redevelopment Paper Reporting Instructions Statement of Indebtedness Reporting Forms C� Statement of Indebtedness Instructions Name of redevelopment agency and person requesting the information: Redevelopment Agency ID Number: 13983037600 Redevelopment Agency: Redevelopment Agency of the City of Huntington Beach Mailing Address: 2000 Main Street City, State,Zip Code: Huntington Beach, CA 92648-2702 Telephone Number: ( 714 )536-5648 Contact Person: Dahle Bulosan E-mail Address: dbulosan@surfcity-hb.org Mail or fax order form to: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section—Redevelopment Unit P.O.Box 942850 Sacramento, CA 94250 Fax: (916) 327-3162 Please call (916)445-5153 if you have any questions regarding this form. Supplement to the Annual Report of Community Redevelopment Agencies 1 Redevelopment Agency ID Number: 13983037600 Name of Redevelopment Agency: Redevelopment Agency of the City of Huntington Beach Mark the appropriate box below to indicate the ending date of your agency's fiscal year. Report data for that period only. N September 2008 � December 2008 June 2009 Return this form to the California State Controller's Office. If you have any questions regarding this form please contact: U.S. Bureau of the Census, Shannon Doyle, 1-800-242-4523 A.Personnel Expenditures Report your government's total expenditures for salaries and wages during the year, including amounts paid on force account construction projects. Z00 $ 1,268,718 B.Mortgage Revenue Bond Interest Payments Report your government's total amount of interest paid on mortgage revenue bonds during the year. U20 $ U-S Bureau of the Census—Revised 3/2009 ocrn�aticrr re v t a+k -�k � t e '� #f" ��s,ri� � "� € e Fiscal Year 2fla � s s � Agenc��4fficidis� Memer8 afthe tsaverntngadys a Middia � fiddle isast NmB ,' `First Naha; �init ifs Phone rMa; Name' a 'FW Nam F ., Chairpersdrl = Bohr Keith Exectitiire Director,I Wilson Fred (714)375-8465 Member �archio Joe Flsl3�fficer ` Villelia Dan (714)536-5225 Member Dwyer Devin Secr`tart' Flynn Joan (714)536-5404 Member Coerper ---�� Gil------------ 1 �� po ^P.Cajrel`Br' Inidptdeit�gtidltr5t Member �' Green Cathy Diehl,Evans and Company, LLP �— Firrx`fam� - p y' - Memberz Hansen Dona$x _— Ross - - iPatel Member Hardy gill Member Middle initial, Member --- - -- — ---- _ Street r2000 Main Street 5 Corporate Park Ste 100 Member - _ —_. -} „ . �.- -- -___-- ;_--— _-� _- City., Huntington Beach Irvine ) .. __._........_... � --- -- — State' CA CA _ i Mailing Address r, _- A Zip Code: �92648- 192606-4956 Street 1 2000 Main Street Phone;, (L714)536 523� �49)399-0600 Street 2 Finance Department City Huntington Beach State CA--jj Zip 92648- Phone -- J� DUJ Is Address Changed? General irtfdtYttatipn _ Page 1 4/812009 .�"„ ... y S. £µ Achie�11 h n ormatit rrE(Unautlitet!) i� .. '. .. Fiscal Year2AOQ,'•. Indicate Only Those Achievements Completed During the Fiscal Year of this Report as a Direct Result of the Activities of the Redevelopment Agency. Please provide a description of the agency's Square Footage Completed activities/accomplishments during the past Enter the amount of square year. footage completed this year by (Please be specific,as this information will building type and segregated by New Rehabilitated be the basis for possible inclusion in the new or rehabilitated construction. Construction publication.) b . Commercial Buildings 9,363 Industrial Buildings I 1 L Public Buildings Other Buildings Total Square Footage 9,363 y` Enter the Number of Jobs Created from the Activities of the Agency Types Completed ACDE A=Utilities B=Recreation C=Landscaping D=Sewer/Storm E=Streets/ Roads F=Bus/Transit i Achlv�smt(nfgKt3tatigrt[tJnau gage 9 � i6dp©9 f _ cP k@ R'� b l ,' m;'' ,din 5�. ,,.• �i nzy"J,. �" .,.. _.: c ,+,:,s,,,. �`,'"'/ y '1'�. kudit.1hfOrMatt -- Fiscal Yea Was the Report Prepared from Audited Financial Yes If compliance opinion includes exceptions, Data,and Did You Submit a Copy of the Audit? -- state the areas of non-compliance,and describe the agency's efforts to correct. Indicate Financial Audit Opinion �— Unqualified If Financial Audit is not yet Completed,What is the Expected Completion Date? -- - If the Audit Opinion was Other than Unqualified, State Briefly the Reason Given Was a Compliance Audit Performed in Accordance with — Yes Health and Safety Code Section 33080.1 and the State Controller's Guidelines for Compliance Audits,and Did You Submit a Copy of the Audit? Indicate Compliance Audit Opinion Unqualified If Compliance Audit is not yet Completed,What is the Expected Completion Date? Aditfnf4rrn6tlbn k g Page 9 , k � 4IC2�09 t JI x.. Fiscal Year 2dd9 Prt meal dame Consolidated Low and Moderate Income r , k < r Housing Funds Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Forwarded from Prior Year ? v a° " Enter Code for Type of Project Area Report i ' L �� SYIyaCA P=Standard Project Area Report A=Administrative Fund Housing Activities L=Low and Moderate Income Housing Fund M =Mortgage Revenue Bond Program 0=Other Miscellaneous Funds or Programs S= Proposed(Survey)Project Area 1.Acquisition of the Patterson Lane Does the Plan Include Tax Increment Provisions? Site--The Redevelopment Agency has acquired a vacant parcel at Date Project Area was Established (MM-DD-YY) 18541 Patterson Lane for$522,500 using Housing Set Aside funds, Most Recent Date Project Area was Amended originally intended for a Habitat for Did this Amendment Add New Territory? Humanity project. However,with —� the withdrawal of Habitat's original Most Recent Date Project Area was Merged offer,it is now expected that the r parcel will be acquired by a non- Will this Project Area be Carried Forward to Next Year? Yes profit developer who will produce Established Time Limit two single family homes to be sold —� as affordable to two qualified,lower i Repayment of Indebtedness (Year Only) income families. ------ 2.Jamboree Housing#1,2,3,and Effectiveness of Plan (Year Only) 4--The Agency and City of New Indebtedness (Year Only) Huntington Beach assisted Jamboree Housing Corporation,an Size of Project Area in Acres Orange County based non-profit Percentage of Land Vacant at the Inception of the Project Area housing developer and designated CHDO(Community Housing Health and Safety Code Section 33320.1 (xx,x%) Development Organization),to acquire and rehabilitate two five Percentage of Land Developed at the Inception of the Project Area —� plex apartment buildings,and one Health and Safety Code Section 33320.1 (xx.x%) four-plex apartment building in the Objectives of the Project Area as Set Forth in the Project Area Plan Oakview sub-area. These ---- represent Jamboree's commitment (Enter the Appropriate Code(s)in Sequence as Shown) R=Residential I=Industrial C=Commercial P =Public 0=Other PrOjectAMpiZTt axr w { $ e I f a r T v 9 a FBscal � 2009 prcitecck Ar�sa Name (Consolidated Low and Moderate Income Housing Funds Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Housing Activities 1.Acquisition of the Patterson Lane Site--The Redevelopment Agency has acquired a vacant parcel at 18541 Patterson Lane for$522,500 using Housing Set Aside funds,originally intended for a Habitat for Humanity project. However,with the withdrawal of Habitat's original offer,it is now expected that the parcel will be acquired by a non- profit developer who will produce two single family homes to be sold as affordable to two qualified,lower income families. 2.Jamboree Housing#1,2,3,and 4—The Agency and City of Huntington Beach assisted Jamboree Housing Corporation,an Orange County based non-profit housing developer and designated CHDO(Community Housing Development Organization),to acquire and rehabilitate two five-plex apartment buildings,and one four-plex apartment building in the Oakview sub-area. These represent Jamboree's commitment to working with the City of Huntington Beach to provide quality affordable housing in the Oakview neighborhood. The funding for these projects has been from HOME and redevelopment housing set-aside funds.The City and Agency are also in the process of assisting Jamboree with the acquisition and rehabilitation of a fourth property,a five-unit building which closed escrow in Spring 2009.Jamboree will provide on-site management and tenant services for the tenants they serve as more properties are acquired and rehabilitated. Garfield and Delaware Affordable Housing Project—The City of Huntington Beach acquired property at the northeast comer of Delaware St.and Garfield Ave.as part of a street widening project. It is expected that the Agency will purchase the property from the City and thereafter develop affordable housing on the parcel in 2009. Following the conveyance of the property to the Agency,an RFP for the development of affordable housing will be sent out to non-profit developers. 4.Colette's Children's Home Keelson Lane Acquisition/Rehab Project The Agency and City assisted Colette's Children's Home in acquiring two five-plex apartment buildings in the Oakview Sub-area in the spring of 2009_ The two '? buildings are comprised of 10 rental units,two of which contain five bedrooms each(accommodate a household of up to 11 persons),accommodations that are sorely needed by larger,low-income families. These,along with eight other one and two-bedroom units,will be rehabilitated and made affordable to qualified very-low and low income families. 5.Pacific Court Apartments In 2008 the Agency expended$7 million in Housing Set-Aside funds and$500,000 in HOME funds to help a non-profit housing developer acquire the 48 apartment units located at 2200 Delaware Avenue. The units and grounds,now known as Pacific Court,are to be fully rehabilitated by 2010,providing affordable housing for 47 very-low and low income households. Once completed,the interior courtyard and greenbelt areas within the complex will provide an area for barbeques or other family activities,and a playground where children can play together_ Pacific Court is also located directly across from the Boys and Girls Club which offers convenient,high quality,affordable youth services and programs to children who live in Huntington Beach. r, F Y d is A a h L E � as a ��� PrpJectee Rape s r fiscal lferpt}9 � � Piraet i4r8k 1t1i E`` r ` �=Huntington Beach Redevelopment Project � ;.], Area No. 1 3 x Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Forwarded from Prior Year? Enter Code for Type of Project Area Report P pR P=Standard Project Area Report A=Administrative Fund (Merged Proje'""""~ L=Low and Moderate Income Housing Fund M=Mortgage Revenue Bond Program Huntington Beach(Merged Project Area) 0=Other Miscellaneous Funds or Programs S=Proposed(Survey)Project Area 1.The Strand is a multi-use project Does the Plan Include Tax Increment Provisions? Yes developed by CIM Group on a 3- Date Project Area was Established (MM-DD-YY) 12/16/1982 acre site in the downtown core. With views of Huntington Beach Most Recent Date Project Area was Amended 8/5/2002,, and the pier it is located on Pacific Did this Amendment Add New Territory? No Coast Highway,north of Main -- — - Street. The Strand's four distinct Most Recent Date Project Area was Merged buildings are linked by open-air — Will this Pro Ye Project Area be Carried Forward to Next Year? s pedestrian walkways. The Strand J -- - --_ -___-.- will offer approximately 110,000 Established Time Limit square feet of retail and office space. Included also is the Repayment of Indebtedness (Year Only) 2034 Shorebreak Hotel which offers 156 z luxury rooms. The Strand includes Effectiveness of Plan (Year Only) 2024 ample parking for customers via a New Indebtedness (Year Only) 2024 subterranean parking structure comprised of 410 parking spaces. Size of Project Area in Acres 619 Retail tenants include Forever 21, Percentage of Land Vacant at the Inception of the Project Area 00 CVS,Active Ride Shop, Rip Curl, ------— Marilee's Swimwear and Angl, Health and Safety Code Section 33320.1 (xx.x%) Dining options currently include Percentage of Land Developed at the Inception of the Project Area 95.0 Johnny Rockets, RA Sushi, New �— Zealand Natural Ice Cream. The # Health and Safety Code Section 33320.1 (xx.x%) Strand development has generated ` Objectives of the Project Area as Set Forth In the Project Area Plan RCPO more than 150job positions. More positions are expected to be filled (Enter the Appropriate Code(s)In Sequence as Shown) R=Residential I = Industrial C=Commercial P =Public 0 =Other Protect Aria Report'' y PageStr s' 41f�120Q9 c x bey f T y Pr epc�etY Fltssca�l(ear x 2oos ;Project Area Name Huntington Beach Redevelopment Project Area No. 1 Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Huntington Beach(Merged Project Area) 1. The Strand is a mulfi-use project developed by CIM Group on a 3-acre site in the downtown core. With views of Huntington Beach and the pier it is located on Pacific Coast Highway,north of Main Street. The Strand's four distinct buildings are linked by open-air pedestrian walkways. The Strand will offer approximately 110,000 square feet of retail and office space. Included also is the Shorebreak Hotel which offers 156 luxury rooms. The Strand includes ample parking for customers via a subterranean parking structure comprised of 410 parking spaces. Retail tenants include Forever 21,CVS,Active Ride Shop,Rip Curl,Marilee's Swimwear and Angl. Dining options currently include Johnny Rockets,RA Sushi,New Zealand Natural Ice Cream. The Strand development has generated more than 150 job positions.More positions are expected to be filled during the next year. The official opening of the Stand is scheduled for May of 2009. 2. Pacific City is being developed by Makar Properties on a 31 acre site at Pacific Coast Highway and First Street. A Community Facilities District is proposed to fund the majority of the street enhancements and Regional Urban Runoff Treatment System for the residential portion of the project. There will be 516 upscale residential housing units built in four phases,ranging from 969 square feet to 2,500 square feet. The residential village,totaling 172 acres and consisting of four distinct styles will act as the cornerstone of Pacific City allowing residents close access to shops, restaurants with 48,900 square feet of restaurant space and 30,000 square feet of office space which is expected to open in late 2009.This community will encompass 191,000 square feet of the retail center featuring luxurious retail brands,prime office space,dining and entertainment.. The"W"is the hotel operator for the boutique hotel that will feature 250 rooms and is expected to open by 2011. Pacific City will provide 1,215 parking spaces to its patrons. Construction of the commercial components of the Project has had some delays due to the state of the economy. 3. Surf City Nights is a street fair/farmer's market that takes place from 5-9 p-m.on Tuesday nights in the first three blocks of downtown Main Street between Pacific Coast Highway and Orange Avenue.Surf City Nights began as a three month trial street closure of Main Street and developed into a weekly,year-round event. The fair was created and maintained in partnership between City of Huntington Beach and the Downtown Business Improvement District. Historically,Tuesdays had been the slowest evening in the downtown. Due to the success of the event,residents and visitors regularly take an evening stroll and dine at local restaurants. The street fair includes farmer's market,live entertainment,children activities,retail sales,food,arts and crafts. On May 1,2008,the Agency was awarded the CALED Grand Prize Award of Excellence for the Surf City Nights Project. 4. Bella Terra,formerly known as Huntington Center which was an outdated 56.5-acre retail property,has been transformed into an entertainment/life style center. In 2005,while the mail was stilt under construction,Bella Terra Associates LLC,a partnership between DJM Capital and Jh Snyder,purchased the property. The Redevelopment Agency approved Bella Terra Associates LLC to assume the rights and responsibilities of the Owner Participation Agreement in order to complete the project. The First Implementation Agreement to the OPA,terminated the vacant Montgomery Wards parcel from the OPA and provided for a$1.5 million implementation fee to the Agency. With the approval of the Second Implementation Agreement on September 17,2007,the Agency was required to commence payment of its obligation of$15 million to the developer. The Redevelopment Agency has paid$2,207,000 towards its obligation to the developer leaving an estimated balance of$14,855,000 as of September 30,2007. The approximate 1,532 space public parking garage,funded by the Community Facilities District 2003-1 (Huntington Center),opened on October 1,2005. Bella Terra Associates LLC also purchased the former Montgomery Wards 13.5 acre portion of the site that has been left vacant for a number of years. Negotiations are commencing to develop the parcel within the next three years. The environmental review process has begun for the proposed mix-use project that will consist of 156,000 square feet of retail and 503-700 residential units. 5. Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor—On December 18,2006 the Agency approved a professional services agreement with Tierra West Advisors,LLC for the preparation of an Economic Revitalization Strategic Plan to enhance and maximize the potential of these major thoroughfares. A real estate market analysis of existing conditions along the cooridors was undertaken to support the rationale for possible land-use changes that are based upon economic trends and community goals. In support of long range planning efforts,the work is being conducted in conjunction with planning firm Freedman,Tung and Bottomley(FTB)for the Specific Plan and Land Use/Planning aspects. Six community meetings were held.The preliminary results of those meetings were presented at a City Council Study Session on January 7,200B. The completed Final Revitalization Strategic Plan and Specific Plans for the corridors will be presented to City Council for approval in 2009. 6.Downtown Specific Plan(DTSP)and Downtown Parking Master Plan--On July 16,2007 the Agency approved y pr ea Qrt r Ell 2009 Huntington Beach Redevelopment Project Area No 1 s professional services contracts with RRM Design Group and Kimley-Horn and Associates,Inc to provide consulting services for the update to the Downtown Specific Plan(DTSP)and Downtown Parking Master Plan(DPMP). RRM Design Group is responsible for developing land use provisions and urban design guidelines that support and encourage a mixed-use development community_ The planning consultant is working with Kimley-Hom and Associates,Inc.(KHA),a traffic/parking consultant that specializes in the analysis of parking in a downtown setting. Having the responsibility of amending the DPMP,KHA will utilize"shared use"parking strategies and other innovative approaches to regulating parking in the downtown area.The first community work shop was held on November 27, 2007.Four community workshops have been held. The draft Downtown Specific Plan will be heard at the Planning Commission in July of 2009. 7.The Waterfront Hilton/Hyatt Huntington Beach Resort and Spa--The 517-room Hyatt Huntington Beach Resort& Spa and its Conference Center opened for business on January 19,2003. Developer's Advance Loan Balance is estimated at$7,215,729 as of December 2007. The hotel paid its second Participation Payment to the Agency during this past year. The project also pays lease payments to the Agency on an annual basis. A third hotel project,to be located near the Hilton and Hyatt hotels,is currently being taken processed by the City Planning Department. 8.Capital Improvements/Facilities—The one time revenue of$19 Million from the Redevelopment Agency's participation payments from the Waterfront Residential project is funding various public improvements within the City's s Merged Redevelopment Project Area. The revenue received during 2004-2006,will be expended over several years through the City's Capital Improvement Program(CIP). Through the CIP,approximately$16 Million has been allocated for capital projects that include the Civic Center seismic retrofit(matched with FEMA funds),drainage improvements, concrete and asphalt replacement,streetlight replacements,restrooms north of the pier,permanent buildings on the pier and a visitor's kiosk at the Pier Plaza Project°Area Report >� Fiscal Year 2QU9 Project Area rName Southeast"Coastal Redevelopment Project Please Provide a Brief Description of the Activities for this Project Area 9 , During the Reporting Year. Forwarded from Prior Year? Enter Code for Type of Project Area Report P] AtlYjk�? Q!4rk P=Standard Project Area Report A=Administrative Fund Southeast Coastal Project Area L= Low and Moderate Income Housing Fund M =Mortgage Revenue Bond Program 0=Other Miscellaneous Funds or Programs S=Proposed(Survey)Project Area 1.Utility Undergrounding-- Does the Plan Include Tax Increment Provisions? Yes Southern California Edison is taking --—_� the lead in doing the design work Date Project Area was Established (MM-DD-YY) 6/17/2002 for under grounding the Edison — utilities along PCH and is working Most Recent Date Project Area was Amended with City staff,CalTrans,and the Did this Amendment Add New Territory? V� California State Beaches j Department. Most Recent Date Project Area was Merged J� 2.Seawater Desalination Facility-- _ The Redevelopment Agency Will this Project Area be Carried Forward to Next Year? approved an Owner Participation Established Time Limit Agreement(OPA),dated February _ 27,2006,with Poseidon Resources Repayment of Indebtedness (Year Only) 2047 Corporation to provide for the development of a seawater Effectiveness of Plan (Year Only) 2032 desalination plant on property New Indebtedness (Year Only) 2022 leased from the AES Corporation, The Agreement containing the Size of Project Area in Acres 172 covenants affecting the real ! Percentage of Land Vacant at the Inception of the Project Area 14,4 property was recorded on June 8, t 2006. AES is in the process of j Health and Safety Code Section 33320.1 (xx,x%) removing storage tanks on this ?property. Percentage of Land Developed at the Inception of the Project Area 85.6 �— 3.Magnolia Street Sidewalk& Health and Safety Code Section 33320.1 (xx.x%) Lighting--The construction of a Objectives of the Project Area as Set Forth in the Project Area Plan PO sidewalk and pedestrian lighting on -----. both sides of Magnolia Street, (Enter the Appropriate Code(s)in Sequence as Shown) R= Residential I = Industrial C=Commercial P=Public 0=Other ProJert'Ara Fiecijt r s Page ', " 4/612Q0 5 �` �tsc �fea>x'�` ,�2009 � 'rot /�irea l�arne� � Southeast Coastal Redevelopment WK 11 Is F Please Provide a Brief Description of the Activities for this Project Area During the Reporting Year. Southeast Coastal Project Area 1.Utility Undergrounding—Southern California Edison is taking the lead in doing the design work for under grounding the Edison utilities along PCH and is working with City staff,CalTrans,and the California State Beaches Department. 2.Seawater Desalination Facility—The Redevelopment Agency approved an Owner Participation Agreement(OPA), dated February 27,2006,with Poseidon Resources Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8,2006. AES is in the process of removing storage tanks on this property. 3.Magnolia Street Sidewalk&Lighting--The construction of a sidewalk and pedestrian lighting on both sides of Magnolia Street,included in the Capital Improvement Program(CIP)budget for last year,has been completed. Pedestrians who visit the beach in this area can now more safely navigate on foot or by bicycle.. C„ Assessed VaI tibri Data Fiscal Year 2009 Project Area Name lHuntington Beach Redevelopment Project Area No. 1 Frozen Base Assessed Valuation 157,252,877 Increment Assessed Valuation 1''''"''1,7783,679 Total Assessed Valuation 1,753,336,556 Assessed,�Iuation dF `� E�age 1 }" f a H 4J13/2fl0 �u ',s e _r ap+tp = '1 f x, Q 4 pu38"mod Valua�on Fiscal Year 2009 Project Area Name Southeast Coastal Redevelopment Project Frozen Base Assessed Valuation 103,733,7551 Increment Assessed Valuation 20,297,969 Total Assessed Valuation �124,031,724 AssessedYaCt� pn Data Page 2 41 /2409 s �` P s ol,t tstr ct Assistance Thru'ugh/54 Fiscal Year 2009 _,J Project Area Name Huntington Beach Redevelopment Project Area No. 1 Tax Increment Pass Through Detail Other Payments Amounts Paid To H&S Code H&S Code H&S Code Total H &S Code H &S Code Taxing Agencies Section 33401 Section 33676 Section 33607 Section 33445 Section 33445.5 County C_ 391,447 _ $391447 Cities 300,616 $300,616 ---- -- ------ - School Districts �_ 923,149 $923,,149 Community College District I-- 200,73 $77734 Special Districts 76,170 $76,170 Total Paid to Taxing 0 $0 Agencies $0 $1 892 116 $0 $1 892 116 $ _ _....... .... .....� ,,,.. . ...._..,_.. .,.. .....,... ...,._._. Net Amount to Agency MEN M $14,936 538 Gross Tax Increment 'a 16,828,654 Generated ix � S&T11S)tl #5� + ikct Ai6f ► u e f E Pa@� /61 �g , f Pass Through/Schaol°[}istrict'Assistarice Fiscal Year L2009 ___ Project Area Name rSoutheast Coastal Redevelopment Project Tax Increment Pass Through Detail Other Payments Amounts Paid To H&S Code H&S Code H&S Code Total H&S Code H&S Code Taxing Agencies Section 33401 Section 33676 Section 33607 Section 33445 Section 33445.5 County 4,534 $4,534 Cities 7,903 e $7 903 n- School Districts 22,210 $22,210 ��� Community College District 4,519- $4,519 Special Districts Total Paid to Taxing _.__. $�._ .,....... $0_.. .., $41 120... $41,120 $0, $Q._.. Agencies �� x P7i's�6a Net Amount to Agency w'''` > r "' $158 229 Gross Tax Increment o i' ? MMMMML-- 199,349 Generated Psss,Thrnugh. cho+�i tIstrfG5sistnce Page16I2009 s- J a Agency Dame y ��It mprQvem�rst`�pet� � ,r�x ��tt �y t d4 S5, f' F�$C1u �il, r ProJa t 1r N r s C?esari�f do ��^Narn of Taxing Agency i4mount Coci� Sion d? R�_ p i. c p p � G 3 "f{cL OP RN v � � e 77771777777� 4N, aJ ..� r 3� a w#a _ --�.--r---j� �v ZY 77, 4 t� �pi�al i#tottttil �� r ' it efl } ys , S;umtnary of tFie S#atemen#of'lndiebtedne s{»pro}eG#Area Fiscal Yea — Project Area Name' ,t Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt Low and Moderate Income Housing Fund Other Total $0. Available Revenues Net Tax Increment Requirements $0 autrtmry d�fih #afE7e€ii dsf iiebtadnesI6eC1 AI�a Page , , 416129. i z ` Surr� ry f th f f ir►�nf ofi lnd bte Ines Project,rot',, ' ._ . Fiscal Yea '2bt39y Project Area Name ' ` g Tax Allocation Bond Debt 35,065,892 Revenue Bonds Other Long Term Debt 7,102,020 City/County Debt 84,841,892 Low and Moderate Income Housing Fund 36,083,659 Other 6,855,766 Total $169,949,229 Available Revenues 5,378,722 Net Tax Increment Requirements $164,570,507 summary bf the�fsttlent of fndiste6s t�rojeexard a a#gar 2 /J2Q�1 n F ,� .: � � �r ����� ��� � Of R�� '�� Ar�t�Of I►�c����adtte� �``���S�cf A►�e� a;-' � �`'�`; Fiscal Yea Project Area Name yy ' Tax Allocation Bond Debt Revenue Bonds Other Long Term Debt City/County Debt �_ 7,334,100 Low and Moderate Income Housing Fund 1,833,525 Other Total $9,167 625 w i Available Revenues 1,197,898 Net Tax Increment Requirements $7,96g,727 as R: Summery o#tttd Stateelpnt cf Ie�t�drte$ s Poj �trAra E ea 3 Y � ...%. ,,.,,`L�°ao. .: °«..�,..»..i„ .. ...:' Agency Long-Term Debt Fiscal Year 12009 -Project Area Name Huntin_ ton_Beach Redevelopment-Project Area No. 1 Forward from Prior Year Bond Type Deferred Compensation Year of Authorization _ 2003 Principal Amount Authorized _ 143,000 Principal Amount Issued 143,000 Purpose of Issue Compensated Absences _ Maturity Date Beginning Year 2003 Maturity Date Ending Year J 2034 Principal Amount Unmatured Beginning of Fiscal Year $37 000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year 62,000 Principal Amount Matured During Fiscal Year —� Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $7700 7 Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes; Financing Authority Bonds;City/County Debt; US;State; Loans;Lease Obligations;Notes; Deferred Pass-Throughs; Deferred Compensation;Other ...a: '+..ss« _ n�14 ""' AOOMY Lon ag feM! „, ' s ' 1 `,FF g 1 9 OEM Agency Long-Term Debt Fiscal Year 12009 _ Project Area Name Huntin ton Beach Redevelopment Project Area No. 1 Forward from Prior Year Bond Type Other Year of Authorization 1982 Principal Amount Authorized 35,000,000 Principal Amount Issued [— 35,000,000 Purpose of Issue Other Maturity Date Beginning Year 2034 Maturity Date Ending Year 2034 Principal Amount Unmatured Beginning of Fiscal Year $7,6011000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal 455,000 Principal Amount Issued During Fiscal Year F_ Principal Amount Matured During Fiscal Year 746,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $7,310,000� Principal Amount In Default Interest In Default —� Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes; Financing Authority Bonds;City/County Debt; US;State;Loans; Lease Obligations;Notes; Deferred Pass-Throughs;Deferred Compensation;Other � �- ^ fi, �{� '�; � �' ems"• ` ak_ '�"k '. r "�,.. � �._ s`'��y, �` .�, tS�` a+'"* ��se Agency Long-Term Debt Fiscal Year Project Area Name lHuntington Beach Redevelopment Project Area No. 1 Forward from Prior Year ``°' Bond Type Other Year of Authorization L_ 2006 Principal Amount Authorized 15,000,000 Principal Amount Issued 1 15,000,006] Purpose of Issue lBeila Terra Parking 7 Maturity Date Beginning Year �-2009 Maturity Date Ending Year 2009 Principal Amount Unmatured Beginning of Fiscal Year $14,855,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal 1,030, 100 Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 1,353,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $1a,532 000 Principal Amount In Default Interest In Default Bond Types Allowed; Tax Allocation Bonds; Revenue Bonds;Certificates of Participation;Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State;Loans; Lease Obligations;Notes; Deferred Pass-Throughs; Deferred Compensation;Other Agenyl�ngrrmDebt f,. zOF � 1 �2Q49 in .,.. ,� '10- h;ti.. yN/ y Agency Long-Term Debt Fiscal Year 2009 Project Area Name IHuntinpton Beach Redevelopment Project Area No._1 Forward from Prior Year Bond Type Tax Allocation Bonds Year of Authorization �— 1999 Principal Amount Authorized L_ 10,835,000 Principal Amount Issued F 10 3535,000 Purpose of Issue [Refinance 1992 Loan --- --- Maturity Date Beginning Year 19991 Maturity Date Ending Year 2025I Principal Amount Unmatured Beginning of Fiscal Year $7,790,0000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 380,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $7,410,000 Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds;Certificates of Participation;Tax Allocation Notes; Financing Authority Bonds;City/County Debt; US;State;Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other Agestey oftgA�e�n t0 � t Page 4 w � C /4�!(?y YFIL z F t - rr 'z�w, s v Fiscal Year 12009 Agency Long-Term Debt --] Project Area Name [Huntington Beach Redevelopment Project Area No. 1__ Forward from Prior Year BEEF= Bond Type Tax Allocation Bonds Year of Authorization — 2002 Principal Amount Authorized 20,900,000 Principal Amount Issued 20,900,000 Purpose of Issue Refinance 1992 PFA Debt Maturity Date Beginning Year 2002 Maturity Date Ending Year [ 2024 Principal Amount Unmatured Beginning of Fiscal Year ,.•., ..•.....,.._.00 ] Adjustment Made During Year Adjustment Explanation C J Interest Added to Principal Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year F 845,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $16,250,000 , Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes; Financing Authority Bonds;City/County Debt; US;State;Loans;Lease Obligations; Notes;Deferred Pass-Throughs; Deferred Compensation;Other A @Rc U-' Tenn Dabt ` N a s F s r g Yg? �� � �,,rn �Rage$ ��� �f�Ni jr2OQ� Agency Long-Term Debt Fiscal Year 2009 Project Area Name Huntington Beach Redevelopment Proiect Area No. 1 Forward from Prior Year SAMEM Bond Type JUS Year of Authorization 2000 Principal Amount Authorized 6,000,000 Principal Amount Issued 6,000,000 Purpose of Issue INew Loan Maturity Date Beginning Year 2000 Maturity Date Ending Year 2034 Principal Amount Unmatured Beginning of Fiscal Year $4,480 Adjustment Made During Year Adjustment Explanation Interest Added to Principal Principal Amount Issued During Fiscal Year —� Principal Amount Matured During Fiscal Year 255, 100 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year r $4,225 000 Principal Amount In Default Interest In Default Bond Types Allowed: Tax Allocation Bonds; Revenue Bonds;Certificates of Participation;Tax Allocation.Notes; Financing Authority Bonds;City/County Debt; US;State;Loans;Lease Obligations;Notes;Deferred Pass-Throughs;Deferred Compensation;Other Ag@rlCy.Long@17i1` s � � CQQ' age, a � x - �a ,s . ..., q Y Agency Long-Term Debt Fiscal Year 2009 Project Area Name Huntington Beach Redevelopment Proiect Area No. 1 Forward from Prior Year Bond Type City/County Debt Year of Authorization 1982 Principal Amount Authorized 104,501,01� Principal Amount Issued L04,501,018 Purpose of Issue lProject Funding Maturity Date Beginning Year 2034 Maturity Date Ending Year — ' 2034 Principal Amount Unmatured Beginning of Fiscal Year $85,369,000 Adjustment Made During Year Adjustment Explanation Interest Added to Principal C 3,567,000 Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year 4,000,000 Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $84,936700 Principal Amount In Default Interest In Default r Bond Types Allowed: Tax Allocation Bonds;Revenue Bonds;Certificates of Participation;Tax Allocation Notes;Financing Authority Bonds;City/County Debt; US;State; Loans;Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation;Other �>�s f�=, 'I Aloe Ager�cY;i,ong 7ermt�e�t Fiscal Year 2009 Project Area Name Huntington Beach Redevelopment Project Area No. 1 l Forward from Prior Year �4 Bond Type Mortgage Revenue Bonds Year of Authorization 1991 Principal Amount Authorized 9,500,000 Principal Amount Issued �`_9,500,000 Purpose of Issue Fine Points Senior Complex Maturity Date Beginning Year 1991 Maturity Date Ending Year 2021 Principal Amount Unmatured Beginning of Fiscal Year 9,500,000 Adjustment Made During Year Adjustment Explanation Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year Principal Amount Defeased During Fiscal Year Principal Amount Unmatured End of Fiscal Year $9,500,000 Principal Amount in Default — Interest in Default Bond Types Allowed: Mortgage Revenue; Industrial Development;Commercial Revenue Bond; Certificate of Participation IYrt"t'1 C'iF kM� EQrtO [�� 4181fi9 a a° a t d aw I IN q, ., .,»W a� t,.n.✓v� r,+ „, �,�, .. -- �� yy �.��1 s��r ?��k��v''��r%119��', > r,u y ,� ,� �y fi u� � x,ea d 4�sa v„v ,ft` „,�Y, �.,b,Y s,9 �,.a, 3✓y dip,�s ���,���,,, r Jon Agency LoC�g.�'ernt.Debt - Fiscal Year 2009 Project Area Name lHuntington Beach Redevelopment Project Area No. 1 Forward from Prior Year Bond Type Mortgage Revenue Bonds Year of Authorization 1996 Principal Amount Authorized L16,000,000 Principal Amount Issued L16,000,000 Purpose of Issue Huntington Breakers Maturity Date Beginning Year 1996 Maturity Date Ending Year 2026 Principal Amount Unmatured Beginning of Fiscal Year 16,000,000 Adjustment Made During Year ---- � Adjustment Explanation Principal Amount Issued During Fiscal Year Principal Amount Matured During Fiscal Year —� Principal Amount Defeased During Fiscal Year —� Principal Amount Unmatured End of Fiscal Year ,0�00$16,000 P Principal Amount in Default Interest in Default Bond Types Allowed, Mortgage Revenue; Industrial Development;Commercial Revenue Bond;Certificate of Participation �jTq i qM . 7MahE Aen,y .Et3 -W' ��y"S�Vrl �.3 7 4 4 a xrt'r " ron 3 tatemnt of Irtome and �cpandit ,res tvsnues .; Fiscal Year i2009 Proiect Area Name Consolidated Low and Moderate Income Housing Funds Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross $0 (Include All Apportionments) Special Supplemental Subvention $0 Property Assessments �— $0 Sales and Use Tax — j $0 Transient Occupancy Tax Interest Income 504,553 $504 553 Rental Income Lease Income 1 $1 Sale of Real Estate Gain on Land Held for Resale $0 Federal Grants— $0 Grants from Other Agencies Bond Administrative Fees _ — �— $o Other Revenues — $O a Total Revenues $0 $0 $504 554 $0.,. ... . ..._$504,554 fatemie d Income and xpendltttr�� ReVeriuee,; . Page' 416/2Udg a Fiscal Year 12009 Proiect Area Name Huntington Beach Redevelopment Project Area No. 1 J� Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross 16,828,654 $16 828,654 (Include All Apportionments) Special Supplemental Subvention $0 Property Assessments $0_ Sales and Use Tax { $0 w Transient Occupancy Tax $ Interest Income 776,005 153,428 $929,433� Rental Income $0 Lease Income 654,204 $654,204 Sale of Real Estate $0 Gain on Land Held for Resale $0 j Federal Grants $0 Grants from Other Agencies _ �— $0 Bond Administrative Fees Other Revenues 16,590 18,614 $35,204 Total Revenues $1,446,799 $17,000,696 $0 $0 $18,447,495 tattner� f �� i �Cehit r„te ;€ k 4t�1ty *ys�r nrpu`.tt �any$ .. iet �t[MIi'!` ��Rei� _A""'An<'r .. - F. �_. �.. Fiscal Year 12009 _._...... Project Area Name Southeast Coastal Redevelopment Project — Low/Moderate Special Capital Project Debt Service Income Housing Revenue/Other Funds Funds Funds Funds Total Tax Increment Gross 199,349— _ $199,349—= (Include All Apportionments) Special Supplemental Subvention C — ( $0 i Property Assessments �— `� _ „$0,_ Sales and Use Tax —�—_..—� $Qw.,._. Transient Occupancy Tax $0 Interest Income i' I $38,736 Rental Income Lease Income -_�— $0 Sale of Real Estate $0 Gain on Land Held for Resale $0 Federal Grants $0...' Grants from Other Agencies $0 Bond Administrative Fees —_ $0 Other Revenues 850 $850 Total Revenues $850 $238,085 $0 $0 $238,935 x t r. a r I e wh h1 t vn r i1 aa; n t Statefrtt}tx►'f31 � ��e�► yy 'eg � �1g 2009 fiJ 4 skm', �# ! e, onto and tpei dj tyres=` Xpen, Ure � Fiscal Year 12009 Project Area Name Consolidated Low and Moderate Income Housing Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs —� _ 250,259 $250,259 r Professional Services 126,966 $126 966 Planning,Survey,and Design ,$0 Real Estate Purchases 1,017,399 $1,017,399 Acquisition Expense Operation of Acquired Property -'— _ Relocation Costs Relocation Payments Site Clearance Costs Project Improvement/Construction Cost —_ 6,983,704 — _ $6,983 7 ,4 , Disposal Costs J. —._ __._.... $0.,.,.. Loss on Disposition of Land Held for Resale Staterr!enti` Irsiine r�]*7r etiltures QO xpenl�iturs4l6/ $ Statement of,Income;and:Expertdi ores-'Expenditures Fiscal Year 2009 _= Project Area Name Consolidated Low and Moderate Income Housinsa Funds —_ --- Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resal w 777' _777$0 , Rehabilitation Costs m $0 Rehabilitation Grants -�- Interest Expense Fixed Asset Acquisitions __ $0 Subsidies to Low and Moderate Income $0 Housing Debt Issuance Costs I $0 ?. Other Expenditures Including $0 Pass-Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes $0 Revenue Bonds, Certificates of (� $0 Participation, Financing Authority Bonds City/County Advances and Loans -- - All Other Long-Term Debt Total Expenditures _ .,.,.,.,. $�...,. $o,..,,. $8 378 828 „ " .,,,. . ....__.._. .$0. 1 . .. .4 $0.-.. _ ....) Excess(Deficiency)Revenues $0 $0 __($7 873,77 ) ($7 873 774 r over(under)Expenditures Sta elTtent c srn� � etc3 xpst�rdrs Peggy 211 12QC� 77 � # ,. � � � atktltlllt Cf lk.,�.lt1C�Q[It(# 1tSl X�1Btltjlt� EX{> 1lldltUfi3S .. - Fiscal Year 27009 Project Area Name Huntington Beach Redevelopment Project Area No. 1 Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs �- 1,167...... 378,176 -� _ $1 545,337 Professional Services 1,148,117 112,456 $1,260 573 ; Planning,Survey,and Design Real Estate Purchases 125,000 � I $125�000 7-1 Acquisition Expense ��$0 Operation of Acquired Property $0 € Relocation Costs - $0 I Relocation Payments $0 - - -- -1 — ---- -- -- --- - ..��, Site Clearance Costs $0 Project Improvement/Construction Cost -_ 5,030,502 — �� i— $5,030 502 Disposal Costs $0 i ---- -- -- --- Loss on Disposition of Land Held for —� Resale _..._.__. rY,. s y Statement of fncome and Expenditures 0penditulres . Fiscal Year 12009 Project Area Name lHuntinaton Beach Redevelopment'Proiect Area No. 1 Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resal '77$p Rehabilitation Costs Rehabilitation Grants -- -- -- — — ...................._..-..._$�...... Interest Expense �_ � 1,482,386 _ R1,482 386„ I Fixed Asset Acquisitions ��_ _ $0 Subsidies to Low and Moderate Income — Housing $0 Debt Issuance Costs L �^ _ _ $0 Other Expenditures Including 1,964,707 $1,964 707 Pass-Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes 1,225,000 �— $1,225,000 Revenue Bonds,Certificates of Participation, Financing Authority Bonds City/County Advances and Loans 4,000,000 —�— $4,000w000 All Other Long-Term Debt 2,354,000 $2,354,000 I Total Expenditures $7 470 780 $11 516 725 777, $0 $18 987,505 ' _.,,... .,.," ,.. . . ...",.._ Excess(Deficiency)Revenues ($6 023,981 $5,483 971 $0 $0 over(under)Expenditures .777T7 Statement of trfaclrne grid l k tcj{i xper5dttures ire e 4 t '' x 'A ,a,., ,.`�'>.... .�.� ; ���, � ,ee�, .' e.�,�%s�.r :+�5 �� l' 'h7.;9:x,r. n✓ '. ,a a9/.,, P .�/ hf#' A.�;a y� pv� � ' S#atert ent of lncome`and Ezp`end9tures-Expencl4t�res s . Fiscal Year 2006 Project Area Name Southeast Coastal Redevelopment Project Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Administration Costs 39,131 $39,131 I Professional Services 4,000 1,417 $5 417 Planning,Survey,and Design m„ my$0 Real Estate Purchases $p Acquisition Expense $0 Operation of Acquired Property $p Relocation Costs $0 Relocation Payments $0 Site Clearance Costs $0 Project Improvement/Construction Cost 28,420 $28,420 Disposal Costs Loss on Disposition of Land Held for J 7- Resale Statement 0 �11CgmFa1 EXpetnditures Expendil�,rea �s¢ ePQgxB a n Q .491:,,r..� ...P i'e� .r .....�., t.. �.`..3 .. t..'c&,.e s.F T 5� �.. .0 4v ,anv1 .s A.:W �,...T. M" AT4t. a$stdt 6le►1t pf-iCtCrGme and �kperldjtures-l3xpendttuCB s u sc_...... fit_ ...,...,,..... v.z. . y.. Fiscal Year 1200j � Project Area Name Southeast Coastal Redevelopment'Project Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Decline in Value of Land Held for Resal T ....... ..___-----__$o_� Rehabilitation Costsso Rehabilitation Grants Interest Expense ...�.d.....,.. ,,....,,..$�-,.� Fixed Asset Acquisitions $0 Subsidies to Low and Moderate Income Housing Debt Issuance Costs $0 --------- --- Other Expenditures Including 41,119 $41,119 Pass-Through Payment(s) Debt Principal Payments: Tax Allocation Bonds and Notes Revenue Bonds,Certificates of $0 Participation, Financing Authority Bonds City/County Advances and Loans All Other Long-Term Debt $0 Total Expenditures $71,551 $42,536 $0 $0 $114,087 Excess(Deficiency)Revenues �$70 701 $195 549a $0 $0 $124 848 over(under)Expenditures Stakement Of we ciitl rlas x 5 ?etfditUres st Pa 8"6 4/BT Ot?a Yl R sS �� 4- t c,�,i? zap._.�� .„, '� ��`'� 2'� :.., ., ti. .� 9 *fir 3ta ement of!»coat antlxpen es Ith�t-Fanancln Ss�ures �� �o! Fiscal Year 2009 Project Area Name Fconsolidated Low and Moderate Income Housing Funds Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds of Long-Term Debt ~ $0 Proceeds of Refunding Bonds _ $0 Payment to Refunded Bond Escrow Agent Advances from City/County Sale of Fixed Assets �— $0 Miscellaneous Financing Sources(Uses) -326 �$32 Operating Transfers In 77 $0 Tax Increment Transfers In 3,405,601 7405,601 Operating Transfers Out $0 Tax Increment Transfers Out $0 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources(Uses) $0 $0 $3 405 275 $0 $3 405 275 Statam jand I xp nditure Other inan tng ON e 41 J {#0 qe " N� Statement ofincorrte and 1~xpencitures Other Fnae?cittg Sources . Fiscal Year 2009 Project Area Name Consolidated Low and Moderate Income Housing Funds Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and _ ._ ..w$� ........... .. .... . $�...,. __. ($4 468 499) $Q...7 771...,,,, ($4 468 499� 71, Other Financing Sources over Expenditures and Other Financing Uses Equity, Beginning of Period $0 $0 ! $12 665 390 $0 $12 665 390 Prior Period Adjustments $0 Residual Equity Transfers Equity,End of Period __...._ $� $�._. . ,.. $$,196 891 _.._ _..,._.$Q... .,.. . $8 196 891 S#at men#Qf Thcats �tttpendtr rced ae 2 �41g'lbQ9 „., Stalk f r s•;q her Tian 01 u ' h Fiscal Year Project Area Name Auntinaton Beach Redevelopment Project.Area No. 1 Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds of Long-Term Debt $0 Proceeds of Refunding Bonds _„$0 Payment to Refunded Bond Escrow Agent Advances from City/County $0 Sale of Fixed Assets Miscellaneous Financing Sources(Uses) 1 326 µ .$325 -11 Operating Transfers In ®$�0 Tax Increment Transfers In -$0 Operating Transfers Out l_ _ _�— $0 Tax Increment Transfers Out 3,365,827 $3,365 827 (To the Low and Moderate Income Housing Fund) $0 _ $0 �$3,365 502) .. Total Other Financing Sources(Uses) _.___.___._.($��,.. _,_._ ($.3 365 501)„ry ___..�...- _ .m... ___._.�.�,-_ .___�,,. .,�,,,.,. , 3t [ntt,itiGt?tn3ap �Xp�n18i�eTlt "itlg �#t�r+Ce� Fiscal Year 12009 Project Area Name lHuntinaton Beach Redevelopment Project Area No. 1 Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and p 023 982) 7-37 177771_..,._ .._., $7 _ .. To Other Financing Sources over Expenditures and Other Financing, Uses Equity, Beginning of Period F7,777777 $539 928 7-717, $,� $22 488 135 Prior Period Adjustments $0 Residual Equity Transfers �� -� $0 Equity,End of Period $15 924 225 $2 658 398 $0 $0 $18 582,623 t Statement of lncnrxts ar�d,l»scpendltures tither Finariclil "Ouices Page 4 S 4 ft l) 3taternent oflnconrie and:E ures xpenciit •Other Financing Sources 64 Fiscal Year �2 009 Project Area Name Southeast Coastal Redevelopment Project Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Proceeds of Long-Term Debt $0 .,, Proceeds of Refunding Bonds �_ —�— _ f 1 _ $0 Payment to Refunded Bond Escrow Agent -------- - — — - — -- -- Advances from City/County o -- ------L—---- - — --- -------- . . .. $ �_.._. Sale of Fixed Assets --- — --- ------ - ---— - — $0 Miscellaneous Financing Sources(Uses) — Operating Transfers In �— _ $0 Tax Increment Transfers In _� $p Operating Transfers Out Tax Increment Transfers Out 39,774 $39 7 (To the Low and Moderate Income Housing Fund) Total Other Financing Sources Uses $0 $39 774 $0 $0 $39 774 ' Statement yf 1nc�itrte and xpeh t ether"Fihatrt trig pit° Peke$ I8I t3(�9 t 1, f 4 ^� ..4 f a ✓. ,i_. ,: Statement of fnaom andxp®n�litur®s .Qth®r�Ftt�naing�5our�es �' N.. : �,..., Fiscal Year 2009 ] Project Area Name Southeast Coastal Redevelopment Proiect Capital Project Debt Service Low/Moderate Special Funds Funds Income Housing Revenue/Other Total Excess(Deficiency)of Revenues and Other Financing Sources over Expenditures and Other Financing Uses Equity,Beginning of Period $190,562) $840,819 $0 $0 $650 257 Prior Period Adjustments 7 ] $0 Residual Equity Transfers $0 ��. Equity,End of Period _($261,263) $996 594 $0, , ._.,_.__.....,... _.$0 . ._ ___.$735 37 KPI State�menUf-1�a rn ` � pe, d(k res- �her1«iner�ctn S s 't e 6 4�,� 1 l�f?9 0, -.t<...,- „e:£,_ .. .. „ ,,., a„ ✓ 4a.., r ;:���/>"r �'!�� /�-, y o,odf it Balance eet A,ssa#s and©#her Debi#s Sh i Low/Moderate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Assets and Other Debits Cash and Imprest Cash 13,801,582 1,290,996 6,490,385 $21 582,963 ' Cash with Fiscal Agent408,784 Tax Increments Receivable 4,556,512 $4,556,512 Accounts Receivable 149,183 300,000 $449,183 Accrued Interest Receivable 122,967 28,248 52,493 $203 708 Loans Receivable F 21,045,766 $21,045,766 ? Contracts Receivable $0 Lease Payments Receivable $0 Unearned Finance Charge $0 Due from Capital Projects Fund 248,845 I 1,362,614EMESEENEENEW $1,611,459 Due from Debt Service Fund 956,255 Due from Low/Moderate _T f� _ $0 Income Housing Fund Due from Special �� $0 Revenue/Other Funds � 3 p mayy,� ry r p� 13alattc �y1BQt ASsBtS*4nd ftp SY}liP p89 X f YlVt4� id,y S £ ..i gybl >''�y �x�i 'ch .r., rC�'r'S sn � ,�`� � ��T*'#„IS�i11f{Zf7n�e.si�Y`Ai�✓ �3'.� l���Ai�y�,� �x. Y''.3'r, r .. ���41��°' �5�9:,' �C ,�'� '� ry .,a, ..� ..sn,N . a, ,. ,���,a ...,...,,:'.�,ii., ., , ;',ia1 .,3.u,.,�;w-z+ F•,. .,.,.,r.rzh�'-. . ,, ,., ,,.., !�' .v......... ,..,. ,�r'�.s� ✓.v,.�; ,.,-...,.., ..,i_;,,. ,,, ..,.., LowlModerate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Investments $0 Other Assets 302,489 $302,489 Investments: Land Held for 2,682,132 $2,682,132 Resale Allowance for Decline In $0 i Value of Land Held for Resale Fixed Assets:Land, 17,153,359 f $17,153,359 Structures,and Improvements _.._. Equipment $0 Amount Available In Debt $0 ; Service Fund --_.._. Amount to be Provided for 134,762,000 $134,762,000 Payment of Long-Term Debt ..............: Total Assets and Other $18,263,453 $8,284,540 $29,251,258 $0 $134,762,000 $17,153,359 $207,714,610 Debits (Must Equal Total Liabilities, Other Credits,and Equities) f „s3a `a,� _ X s .o '` aid Eie tO' 44 .- a ��Gt r �'n'. '3 x + ,: 3 �t :a ISi ¢ .t e +r s ag l ne 1 "S r s r" 6 a 5` t r4, +.i. .,•,e., ,�..... ,..,_>_. _ter,,,.,, �i,T '.. Fs��'y 3� '�Y .�' sxs 1Y ti. � !F S\i Y � � l tl�eyS� t1.� r+:}dC ,31 I� 3 �5�� � ✓��*���i� Y,', l Low/Moderate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing Revenue/Other General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Liabilities and Other Credits Accounts Payable 859,032 L 8,601 $867,633 — -- — ------ = Interest Payable _$0 Tax Anticipation Notes Payable —�— _ �� $0 Loans Payable $0 v__... Other Liabilitie --- 130,000 3,673,293 21,045,766 $24,849,059 Due to Capital Projects Fund 248,845 956,255 $1,205,100 Due to Debt Service Fund --_� _ $0 Due to Low/Moderate 1,362,614�— �— $1 362,614 Income Housing Fund Due to Special $„ Revenue/Other Funds Tax Allocation Bonds Payable " 231660,000 $23 660,000 Lease Revenue,Certificates , of Participation Payable, — -- -- - _ _-_,__.._,......._.._- Financing Authority Bonds All Other Long-Term Debi t �frF.N 111,102,000 $111,102,000 Total Liabilities and Other $2 600 491 $4 629 548 $21 054 367 $0 $134 762 000 $163 046 406 Credits .. _�..._,.. ........�. �_......... ..y Y iSprt 4u�;N, alance s„ y.. a a �� 8 4B44 _1 ib i g§a 1 �U9 r vv_ Xt „ , gai'Oh Sh,eet LCabiiities anct father Credits f ` Low/Moderate Special Fiscal Year 2009 Capital Projects Debt Service Income Housing RevenuelOther General Long- General Fixed Funds Funds Funds Funds Term Debt Assets Total Equities Investment In General mom= � 17,153,359 $17,153,359 Fixed Assets Fund Balance Reserved 15,662, 62 3,654, 8,196,891 $27,514,845 E Fund Balance Unreserved-Designated Fund Balance $0 Unreserved-Undesignated — --- Total Equities _„.....$15 662 W! ____ _$3,654 992 $8 196 891 $0„ $17 153 359 $44 668,204„ Total Liabilities, Other Credits, and Equities $18 263 453 $8,284 540 $29 251 258 $0 $134 762,000 $17 153 359 $207 714 610 4t s an a She iabifi€ies e t ere ji Page ' E s � � gM .4 O St em�nt o lncoma anc#I xpendltures`- Sur Mary,Ccti�ibIna, Transfers InlQut , o Fiscal Year21�0� Operating Transfers In 17777.77737 Tax Increment Transfers In $3,405,601 Operating Transfers Out 77 Tax Increment Transfers Out $3,405,601 Statgnent of#ncarr► xpandlts�res Swrr�ma s 1 ge f , A18/2069iz� SEE Combm�d Tr nsfe +wt n tl S 4 3 t &�5;M '� q-< �i� a rr, :- rr :. ,' ra`".. �a a .�.,- z'� «, � , P t• � ,u� �� rf n .- :r,°.d x s'z ,� The redevelopment Agency of the City of Huntington Beach Activities 2007-2008 AGENCY OVERVIEW During this year the Redevelopment Agency of the City of Huntington Beach continued to implement the projects that were described in the Implementation Plans and the Ten Year Housing Compliance Plan, namely: HUNTINGTON BEACH PROJECT (MERGED AREA) • The Strand (Blocks 104-105 in the Main Pier sub area) • Pacific City • Surf City Nights • Bella Terra • Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor • Downtown Specific Plan(DTSP) and Downtown Parking Master Plan • Waterfront Hilton/Hyatt Huntington Beach Resort and Spa • Capital Improvements and Facilities SOUTHEAST COASTAL PROJECT • Utility Undergrounding • Magnolia Sidewalk& Pedestrian Lighting • Seawater Desalination Facility HOUSING • Oakview Street Improvements • Jamboree Housing I, 1I and III • Pacific Court Apartments • Patterson Lane Property Acquisition PROJECTS &ACTIVITIES Huntington Beach (Merced Proiect Area) 1. The Strand is a multi-use project developed by CIM Group on a 3-acre site in the downtown core. With views of Huntington Beach and the pier it is located on Pacific Coast Highway, north of Main Street. The Strand's four distinct buildings are linked by open-air pedestrian walkways. The Strand will offer approximately 110,000 square feet of retail and office space. Included also is the Shorebreak Hotel which offers 156 luxury rooms. The Strand includes ample parking for customers via a subterranean parking structure comprised of 410 parking spaces. Retail tenants include Forever 21, CVS, Active Ride Shop, Rip Curl, Marilee's Swimwear and Angl. Dining options currently include Johnny Rockets, RA Sushi,New Zealand Natural Ice Cream. The Strand development has generated more than 150 job positions. More positions are expected to be filled during the next year. The official opening of the Stand is scheduled for May of 2009. Page 1 of 5 C:\Documents and Settings\rossa\Local Settings\Temporary Internet Files\OLKA5\RDA Activities REVISED 2009.doc 2. Pacific City is being developed by Makar Properties on a 31 acre site at Pacific Coast Highway and First Street. A Community Facilities District is proposed to fund the majority of the street enhancements and Regional Urban Runoff Treatment System for the residential portion of the project. There will be 516 upscale residential housing units built in four phases, ranging from 969 square feet to 2,500 square feet. The residential village, totaling 17.2 acres and consisting of four distinct styles will act as the cornerstone of Pacific City allowing residents close access to shops, restaurants with 48,900 square feet of restaurant space and 30,000 square feet of office space which is expected to open in late 2009. This community will encompass 191,000 square feet of the retail center featuring luxurious retail brands, prime office space, dining and entertainment.. The"W" is the hotel operator for the boutique hotel that will feature 250 rooms and is expected to open by 2011. Pacific City will provide 1,215 parking spaces to its patrons. Construction of the commercial components of the Project has had some delays due to the state of the economy. 3. Surf City Nights is a street fair/farmer's market that takes place from 5-9 p.m. on Tuesday nights in the first three blocks of downtown Main Street between Pacific Coast Highway and Orange Avenue. Surf City Nights began as a three month trial street closure of Main Street and developed into a weekly, year-round event. The fair was created and maintained in partnership between City of Huntington Beach and the Downtown Business Improvement District. Historically, Tuesdays had been the slowest evening in the downtown. Due to the success of the event, residents and visitors regularly take an evening stroll and dine at local restaurants. The street fair includes farmer's market, live entertainment, children activities, retail sales, food, arts and crafts. On May 1, 2008, the Agency was awarded the CALED Grand Prize Award of Excellence for the Surf City Nights Project. 4. Bella Terra, formerly known as Huntington Center which was an outdated 56.5-acre retail property, has been transformed into an entertainment/life style center. In 2005, while the mall was still under construction, Bella Terra Associates LLC, a partnership between DJM Capital and Jh Snyder, purchased the property. The Redevelopment Agency approved Bella Terra Associates LLC to assume the rights and responsibilities of the Owner Participation Agreement in order to complete the project. The First Implementation Agreement to the OPA, terminated the vacant Montgomery Wards parcel from the OPA and provided for a $1.5 million implementation fee to the Agency. With the approval of the Second Implementation Agreement on September 17, 2007, the Agency was required to commence payment of its obligation of$15 million to the developer. The Redevelopment Agency has paid $2,207,000 towards its obligation to the developer leaving an estimated balance of $14,855,000 as of September 30, 2007. The approximate 1,532 space public parking garage, funded by the Community Facilities District 2003-1 (Huntington Center),opened on October 1, 2005. Bella Terra Associates LLC also purchased the former Montgomery Wards 13.5 acre portion of the site that has been left vacant for a number of years. Negotiations are commencing to develop the parcel within the next three years. The environmental review process has begun for the proposed mix-use project that will consist of 156,000 square feet of retail and 503-700 residential units. 5. Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor -- On December 18, 2006 the Agency approved a professional services agreement with Page 2 of 5 C:\Documents and SettingsVossa\Local Settings\Temporary Intemet Files\OLKA5\RDA Activities REVISED 2009.doc Tierra West Advisors, LLC for the preparation of an Economic Revitalization Strategic Plan to enhance and maximize the potential of these major thoroughfares. A real estate market analysis of existing conditions along the cooridors was undertaken to support the rationale for possible land-use changes that are based upon economic trends and community goals. In support of long range planning efforts, the work is being conducted in conjunction with planning firm Freedman, Tung and Bottomley (FTB) for the Specific Plan and Land Use/Planning aspects. Six community meetings were held. The preliminary results of those meetings were presented at a City Council Study Session on January 7, 2008. The completed Final Revitalization Strategic Plan and Specific Plans for the corridors will be presented to City Council for approval in 2009. 6. Downtown Specific Plan (DTSP) and Downtown Parking Master Plan -- On July 16, 2007 the Agency approved professional services contracts with RRM Design Group and Kimsey-Horn and Associates, Inc. to provide consulting services for the update to the Downtown Specific Plan (DTSP) and Downtown Parking Master Plan (DPMP). RRM Design Group is responsible for developing land use provisions and urban design guidelines that support and encourage a mixed-use development community. The planning consultant is working with Kimsey-Horn and Associates, Inc. (KHA), a traffic/parking consultant that specializes in the analysis of parking in a downtown setting. Having the responsibility of amending the DPMP, KHA will utilize "shared use" parking strategies and other innovative approaches to regulating parking in the downtown area. The first community work shop was held on November 27, 2007. Four community workshops have been held. The draft Downtown Specific Plan will be heard at the Planning Commission in July of 2009. 7. The Waterfront Hilton/Hyatt Huntington Beach Resort and Spa--The 517-room Hyatt Huntington Beach Resort & Spa and its Conference Center opened for business on January 19, 2003. Developer's Advance Loan Balance is estimated at $7,215,729 as of December 2007. The hotel paid its second Participation Payment to the Agency during this past year. The project also pays lease payments to the Agency on an annual basis. A third hotel project, to be located near the Hilton and Hyatt hotels, is currently being taken processed by the City Planning Department. 8. Capital Improvements/Facilities -- The one time revenue of $19 Million from the Redevelopment Agency's participation payments from the Waterfront Residential project is funding various public improvements within the City's Merged Redevelopment Project Area. The revenue received during 2004-2006, will be expended over several years through the City's Capital Improvement Program (CIP). Through the CIP, approximately $16 Million has been allocated for capital projects that include the Civic Center seismic retrofit (matched with FEMA funds), drainage improvements, concrete and asphalt replacement, streetlight replacements, restrooms north of the pier, permanent buildings on the pier and a visitor's kiosk at the Pier Plaza. Page 3 of 5 C:\Documents and Settings\rossa\Local SettingsUemporary Internet Files\OLKA5IRDA Activities REVISED 2009.doc 9. Southeast Coastal Project Area 1. Utility Undergrounding -- Southern California Edison is taking the lead in doing the design work for under grounding the Edison utilities along PCH and is working with City staff, CalTrans, and the California State Beaches Department. 2. Seawater Desalination Facility -- The Redevelopment Agency approved an Owner Participation Agreement (OPA), dated February 27, 2006, with Poseidon Resources Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8, 2006. AES is in the process of removing storage tanks on this property. 3. Magnolia Street Sidewalk & Lighting -- The construction of a sidewalk and pedestrian lighting on both sides of Magnolia Street, included in the Capital Improvement Program (CIP) budget for last year, has been completed. Pedestrians who visit the beach in this area can now more safely navigate on foot or by bicycle.. Housiny-Activities 1. Acquisition of the Patterson Lane Site -- The Redevelopment Agency has acquired a vacant parcel at 18541 Patterson Lane for $522,500 using Housing Set Aside funds, originally intended for a Habitat for Humanity project. However, with the withdrawal of Habitat's original offer, it is now expected that the parcel will be acquired by a non-profit developer who will produce two single family homes to be sold as affordable to two qualified, lower income families. 2. Jamboree Housing #1, 2, 3, and 4-- The Agency and City of Huntington Beach assisted Jamboree Housing Corporation, an Orange County based non-profit housing developer and designated CHDO (Community Housing Development Organization), to acquire and rehabilitate two five-plex apartment buildings, and one four-plex apartment building in the Oakview sub-area. These represent Jamboree's commitment to working with the City of Huntington Beach to provide quality affordable housing in the Oakview neighborhood. The funding for these projects has been from HOME and redevelopment housing set-aside funds. The City and Agency are also in the process of assisting Jamboree with the acquisition and rehabilitation of a fourth property, a five-unit building which closed escrow in Spring 2009. Jamboree will provide on-site management and tenant services for the tenants they serve as more properties are acquired and rehabilitated. 3. Garfield and Delaware Affordable Housing Project -- The City of Huntington Beach acquired property at the northeast corner of Delaware St. and Garfield Ave. as part of a street widening project. It is expected that the Agency will purchase the property from the City and thereafter develop affordable housing on the parcel in 2009. Following the conveyance of the property to the Agency, an RFP for the development of affordable housing will be sent out to non-profit developers. Page 4 of 5 C_\Documents and Settings\rossa\Local Settings\Temporary Internet Files\OLKA5\RDA Activities REVISED 2009.doc 4.. Colette's Children's Home Keelson Lane Acquisition/Rehab Project—The Agency and City assisted Colette's Children's Home in acquiring two five-plex apartment buildings in the Oakview Sub-area in the spring of 2009. The two buildings are comprised of 10 rental units, two of which contain five bedrooms each (accommodate a household of up to l I persons), accommodations that are sorely needed by larger, low-income families. These, along with eight other one and two-bedroom units, will be rehabilitated and made affordable to qualified very-low and low income families. 5. Pacific Court Apartments — In 2008 the Agency expended $7 million in Housing Set- Aside funds and $500,000 in HOME funds to help a non-profit housing developer acquire the 48 apartment units located at 2200 Delaware Avenue. The units and grounds, now known as Pacific Court, are to be fully rehabilitated by 2010, providing affordable housing for 47 very-low and low income households. Once completed, the interior courtyard and greenbelt areas within the complex will provide an area for barbeques or other family activities, and a playground where children can play together. Pacific Court is also located directly across from the Boys and Girls Club which offers convenient, high quality, affordable youth services and programs to children who live in Huntington Beach. Page 5 of 5 C:\Documents and Settings\rossa\Local Settings\Temporary Internet Files\OLKA5\RDA Activities REVISED 2009.doc The Redevelopment Agency of the City of Huntington Beach Activities 2007-2008 AGENCY OVERVIEW During this year the Redevelopment Agency of the City of Huntington Beach continued to implement the projects that were described in the Implementation Plans and the Ten Year Housing Compliance Plan, namely: HUNTINGTON BEACH PROJECT (MERGED AREA) • The Strand (Blocks 104-105 in the Main Pier sub area) • Pacific City • Surf City Nights • Bella Terra • Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor • Downtown Specific Plan (DTSP) and Downtown Parking Master Plan • Waterfront Hilton/Hyatt Huntington Beach Resort and Spa • Capital Improvements and Facilities SOUTHEAST COASTAL PROJECT • Utility Undergrounding • Magnolia Sidewalk& Pedestrian Lighting • Seawater Desalination Facility HOUSING • Oakview Street Improvements • Jamboree Housing 1, II and III • Pacific Court Apartments • Patterson Lane Property Acquisition PROJECTS & ACTIVITIES Huntington Beach (Merged Project Area) 1. The Strand is a multi-use project developed by CIM Group on a 3-acre site in the downtown core. With views of Huntington Beach and the pier it is located on Pacific Coast Highway, north of Main Street. The Strand's four distinct buildings are linked by open-air pedestrian walkways. The Strand will offer approximately 110,000 square feet of retail and office space. Included also is the Shorebreak Hotel which offers 156 luxury rooms. The Strand includes ample parking for customers via a subterranean parking structure comprised of 410 parking spaces. Retail tenants include Forever 21, CVS, Active Ride Shop, Rip Curl, Marilee's Swimwear and Angl. Dining options currently include Johnny Rockets, RA Sushi,New Zealand Natural Ice Cream. The Strand development has generated more than 150 job positions. More positions are expected to be filled during the next year. The official opening of the Stand is scheduled for May of 2009. Page 1 of 5 G:ARcpoits\Staic Cori trol let—FICD AnnualV2007-200KRDA Activities RI'VISM 2009.doc 2. ]Pacific City is being developed by Makar Properties on a 31 acre site at Pacific Coast Highway and First Street. A Community Facilities District is proposed to fund the majority of the street enhancements and Regional Urban Runoff Treatment System for the residential portion of the project. There will be 516 upscale residential housing units built in four phases, ranging from 969 square feet to 2,500 square feet. The residential village, totaling 17.2 acres and consisting of four distinct styles will act as the cornerstone of Pacific City allowing residents close access to shops, restaurants with 48,900 square feet of restaurant space and 30,000 square feet of office space which is expected to open in late 2009. This community will encompass 191,000 square feet of the retail center featuring luxurious retail brands, prime office space, dining and entertainment.. The "W" is the hotel operator for the boutique hotel that will feature 250 rooms and is expected to open by 2011. Pacific City will provide 1,215 parking spaces to its patrons. Construction of the commercial components of the Project has had some delays due to the state of the economy. 3. Surf City Nights is a street fair/farmer's market that takes place from 5-9 p.m. on Tuesday nights in the first three blocks of downtown Main Street between Pacific Coast Highway and Orange Avenue. Surf City Nights began as a three month trial street closure of Main Street and developed into a weekly, year-round event. The fair was created and maintained in partnership between City of Huntington Beach and the Downtown Business Improvement District. Historically, Tuesdays had been the slowest evening in the downtown. Due to the success of the event, residents and visitors regularly take an evening stroll and dine at local restaurants. The street fair includes farmer's market, live entertainment, children activities, retail sales, food, arts and crafts. On May 1, 2008, the Agency was awarded the CALED Grand Prize Award of Excellence for the Surf City Nights Project. 4. ]Bella 'Terra, formerly known as Huntington Center which was an outdated 56.5-acre retail property, has been transformed into an entertainment/life style center. In 2005, while the mall was still under construction, Bella Terra Associates LLC, a partnership between DJM Capital and Jh Snyder, purchased the property. The Redevelopment Agency approved Bella Terra Associates LLC to assume the rights and responsibilities of the Owner Participation Agreement in order to complete the project. The First Implementation Agreement to the OPA, terminated the vacant Montgomery Wards parcel from the OPA and provided for a $1.5 million implementation fee to the Agency. With the approval of the Second Implementation Agreement on September 17, 2007, the Agency was required to commence payment of its obligation of$15 million to the developer. The Redevelopment Agency has paid $2,207,000 towards its obligation to the developer leaving an estimated balance of $14,855,000 as of September 30, 2007. The approximate 1,532 space public parking garage, funded by the Community Facilities District 2003-1 (Huntington Center), opened on October 1, 2005. Bella Terra Associates LLC also purchased the former Montgomery Wards 13.5 acre portion of the site that has been left vacant for a number of years. Negotiations are commencing to develop the parcel within the next three years. The environmental review process has begun for the proposed mix-use project that will consist of 156,000 square feet of retail and 503-700 residential units. 5. Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor -- On December 18, 2006 the Agency approved a professional services agreement with Page 2 of 5 G:ARcports`State Controller_H(�l)Annual`,2007-2008\RDA Activities REVIS1;D 2009.doc Tierra West Advisors, LLC for the preparation of an Economic Revitalization Strategic Plan to enhance and maximize the potential of these major thoroughfares. A real estate market analysis of existing conditions along the cooridors was undertaken to support the rationale for possible land-use changes that are based upon economic trends and community goals. In support of long range planning efforts, the work is being conducted in conjunction with planning firm Freedman, Tung and Bottomley (FTB) for the Specific Plan and Land Use/Planning aspects. Six community meetings were held. The preliminary results of those meetings were presented at a City Council Study Session on January 7, 2008. The completed Final Revitalization Strategic Plan and Specific Plans for the corridors will be presented to City Council for approval in 2009. 6. Downtown Specific Plan (DTSP) and Downtown Parking Master Plan -- On July 16, 2007 the Agency approved professional services contracts with RRM Design Group and Kimley-Horn and Associates, Inc. to provide consulting services for the update to the Downtown Specific Plan (DTSP) and Downtown Parking Master Plan (DPMP). RRM Design Group is responsible for developing land use provisions and urban design guidelines that support and encourage a mixed-use development community. The planning consultant is working with Kimley-Horn and Associates, Inc. (KHA), a traffic/parking consultant that specializes in the analysis of parking in a downtown setting. Having the responsibility of amending the DPMP, KHA will utilize "shared use" parking strategies and other innovative approaches to regulating parking in the downtown area. The first community work shop was held on November 27, 2007. Four community workshops have been held. The draft Downtown Specific Plan will be heard at the Planning Commission in July of 2009. 7. The Waterfront Hilton /Myatt Huntington Beach Resort and Spa -- The 517-room Hyatt Huntington Beach Resort & Spa and its Conference Center opened for business on January 19, 2003. Developer's Advance Loan Balance is estimated at $7,215,729 as of December 2007. The hotel paid its second Participation Payment to the Agency during this past year. The project also pays lease payments to the Agency on an annual basis. A third hotel project, to be located near the Hilton and Hyatt hotels, is currently being taken processed by the City Planning Department. 8. Capital Improvements/Facilities -- The one time revenue of $19 Million from the Redevelopment Agency's participation payments from the Waterfront Residential project is funding various public improvements within the City's Merged Redevelopment Project Area. The revenue received during 2004-2006, will be expended over several years through the City's Capital Improvement Program (CIP). Through the CIP, approximately $16 Million has been allocated for capital projects that include the Civic Center seismic retrofit (matched with FEMA funds), drainage improvements, concrete and asphalt replacement, streetlight replacements, restrooms north of the pier, permanent buildings on the pier and a visitor's kiosk at the Pier Plaza. Page 3 of 5 G:ARcports`State Control]er_11(1)Annual 2007-2008yRDA activities REVISED 2009.doc 9. Southeast Coastal Project Area 1. Utility Undergrounding -- Southern California Edison is taking the lead in doing the design work for under grounding the Edison utilities along PCH and is working with City staff, CalTrans, and the California State Beaches Department. 2. Seawater Desalination Facility -- The Redevelopment Agency approved an Owner Participation Agreement (OPA), dated February 27, 2006, with Poseidon Resources Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8, 2006. AES is in the process of removing storage tanks on this property. 3. Magnolia Street Sidewalk & Lighting -- The construction of a sidewalk and pedestrian lighting on both sides of Magnolia Street, included in the Capital Improvement Program (CIP) budget for last year, has been completed. Pedestrians who visit the beach in this area can now more safely navigate on foot or by bicycle.. Dousing Activities 1. Acquisition of the Patterson Lane Site -- The Redevelopment Agency has acquired a vacant parcel at 18541 Patterson Lane for $522,500 using Housing Set Aside funds, originally intended for a Habitat for Humanity project. However, with the withdrawal of Habitat's original offer, it is now expected that the parcel will be acquired by a non-profit developer who will produce two single family homes to be sold as affordable to two qualified, lower income families. 2. Jamboree Dousing #f, 2, 3, and 4-- The Agency and City of Huntington Beach assisted Jamboree Housing Corporation, an Orange County based non-profit housing developer and designated CHDO (Community Housing Development Organization), to acquire and rehabilitate two five-plex apartment buildings, and one four-plex apartment building in the Oakview sub-area. These represent Jamboree's commitment to working with the City of Huntington Beach to provide quality affordable housing in the Oakview neighborhood. The funding for these projects has been from HOME and redevelopment housing set-aside funds. The City and Agency are also in the process of assisting Jamboree with the acquisition and rehabilitation of a fourth property, a five-unit building which closed escrow in Spring 2009. Jamboree will provide on-site management and tenant services for the tenants they serve as more properties are acquired and rehabilitated. 3. Garfield and Delaware Affordable Dousing Project -- The City of Huntington Beach acquired property at the northeast corner of Delaware St. and Garfield Ave. as part of a street widening project. It is expected that the Agency will purchase the property from the City and thereafter develop affordable housing on the parcel in 2009. Following the conveyance of the property to the Agency, an RFP for the development of affordable housing will be sent out to non-profit developers. Page 4 of 5 G:ARcports!-State Controller IK )Annual\2047-2008 RI7A Activities REVISED 2009.doc 4. Colette's Children's Home Keelson bane Acquisition/Rehab Project — The Agency and City assisted Colette's Children's Home in acquiring two five-plex apartment buildings in the Oakview Sub-area in the spring of 2009. The two buildings are comprised of 10 rental units, two of which contain five bedrooms each (accommodate a household of up to 11 persons), accommodations that are sorely needed by larger, low-income families. These, along with eight other one and two-bedroom units, will be rehabilitated and made affordable to qualified very-low and low income families. 5. Pacific Court Apartments — In 2008 the Agency expended $7 million in Housing Set- Aside funds and $500,000 in HOME funds to help a non-profit housing developer acquire the 48 apartment units located at 2200 Delaware Avenue. The units and grounds, now known as Pacific Court, are to be fully rehabilitated by 2010, providing affordable housing for 47 very-low and low income households. Once completed, the interior courtyard and greenbelt areas within the complex will provide an area for barbeques or other family activities, and a playground where children can play together. Pacific Court is also located directly across from the Boys and Girls Club which offers convenient, high quality, affordable youth services and programs to children who live in Huntington Beach. Page 5 of 5 G.AReports`Statc Controller_HC:D Annea1\2007-2008yRDA Activities REVISED 2009.doc Additional Reports for State Controller City of Huntington Beach RDA Fiscal Year Ended September 30,2008 1) Blight progress report (specifies actions and expenditures made in the previous fiscal year to alleviate blight), Health & Safety Code §33080.1(4) On November 15,2004,the Agency approved the Five Year Implementation Plan(2005-2009) for the Huntington Beach Project(Merged) and the Southeast Coastal Redevelopment Project,which was updated in November of2007, and the Ten Year Housing Compliance Plan (2005-2014)that is on file with the State Controller. During fiscal year 2007-08 some blighted conditions were mitigated through the programs described in these plans. In particular, construction of the CIM project"The Strand", a mixed-use, downtown development comprised of 213,338 SF of office, retail, restaurant, office and hotel space,and a 410-space parking structure, is near completion. The official opening of The Strand is expected to occur in May of 2009. The project has created 155 new employee positions since its soft opening in November. It is anticipated that there will be many more job positions filled as office and hotel spaces are occupied and become operational. The renovation of Huntington Center,now called"Bella Terra,"is now fully occupied. Construction on the commercial components making up the Makar Properties project, "Pacific City",has had some unexpected delays, due to the state of the economy. The commercial portion of the project is expected to be complete in 2011,with construction of the housing components of the Project to follow shortly thereafter. Efforts continue to enhance and maximize the potential of the major thoroughfares known as Beach Boulevard and Edinger Avenue through a Specific Plan, and to update the Downtown Specific Plan and Downtown Parking Master Plan. Public improvement projects undertaken in the Huntington Beach Redevelopment Merged Project area this year include street improvements in the Oakview neighborhood. In the Southeast Redevelopment Project Area,the Magnolia Sidewalk Project was completed and the Agency is working with Edison,CalTrans,and the California State Beaches Department to underground the Edison utilities along Pacific Coast Highway. The proposed development of a seawater desalination plant, "The Poseidon Project", is scheduled for consideration by the California Coastal Commission next year. 2) Loan report (identifies loans (receivable) which equal or exceed$50,000 and that were found by the agency during the previous fiscal year to have either defaulted or not complied with the terms of the agreements approved by the agency), Health& Safe Code 03080.1(e). a) None 3) Property report (describes properties owned by the agency and those acquired in the previous fiscal year), Health and Safety Code §33080.1( . a) The City of Huntington Beach acquire one property in the fiscal year ending Se tember 30, 2008, as follows: Assessor's Description Parcel Number Acres Cost Acquired Funding Source Category 18451 Patterson Lane 157-341-22 0.17 $522,500.00 11/5/2007 Housing Set-Aside Resale Page 1 b) Agency Owned Land as of September 30,2008: Assessor's Description Parcel Number Acres Cost Acquired Funding Source Category Bowen Court Senior Housing Project- Sixty-year lease with Merit Housing, commencing Possessory 6/11/2001. $1.00/year lease AP 023-042-18,- Interest payment. 19,-20,-21,-22 0.751 $885,000.00 9/30/1994 Housing Set-Aside Asset Surf Museum (SEC 5th/Olive) AP 024-147-01 0.116 $286,300.00 7/1/1991 Tax Increment Asset Block 104 (10' Remnant Abdelmuti parcel exchanged as 10' portion of AP 024-153- 12 Gosney) Acquisition cost was pro ortionately reduced AP 024-153-21 0.017 $259,000.00 10/1/1989 Tax Increment Asset Assessor's Description Parcel Number Acres Cost Acquired Fundinq Source Category Vacant Land, Formerly AP 165-364-05 [7921 Cypress Walker and part of-07 AP 165-364-24 0.262 $180,295.00 10/1/1989 Tax Increment Resale Possessory Waterfront Leasehold for 99 AP 024-251-01 & Interest ears. 024-252-01, -02 22.079 $14,023,000.00 7/1/1989 Tax Increment Asset Vacant Land (NEC Parkside/Aldrich) AP 142-081-06 0.413 $664,582.00 9/1/1988 Tax Increment Resale Vacant Land (NEC AP 142-081-09,- Parkside/Ald rich) 10,-11,-12 1.023 $753,180.00 9/1/1988 Tax Increment Resale Gothard/ Hoover(Housing) AP 142-073-03 2.718 $1,084,074.00 9/1/1987 Tax Increment Resale Gothard/ Hoover Westminster Parcel AP 142-311-34 1.166 $465,059.00 9/1/1987 Tax Increment Asset 18451 Patterson Lane 157-341-22 0.17 $522,500.00 11/5/2007 Housing Set-Aside Resale 4.59 $3,204,631.00 Total for Land Held for Resale Page 2 ATTACHMENT #2 CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT REDEVELOPMENT AGENCY ANNUAL HOUSING ACTIVITY REPORT FY ENDING: September / 30 / 2008 Agency Name and Address: County of Jurisdiction: gRedyevelopment Agency of the City of Huntington Beach Orange 2000 Main St. , 5th Flr. Huntington Beach, CA 92648 Health&Safety Code Section 33080.1 requires agencies(RDAs)to annually report on their Low&Moderate Income Housing Fund and housing activities for the Department of Housing and Community Development(HCD)to report on RDAs'activities in accordance with Section 33080.6. Please answer each question below. Your answers determine how to complete the HCD report. 1. Check one of the items below to identify the Agency's status at the end of the reporting period: ❑ New(Agency formation occurred during reporting year. No financial transactions were completed). ® Active(Financial and/or housing transactions occurred during the reporting year) ❑ Inactive(No financial and/or housing transactions occurred during the reporting Year). ONLY COMPLETE ITEM 7 ❑ Dismantled(Agency adopted an ordinance and dissolved itself before start of reporting year). ONLY COMPLETE ITEM 7 2. During reporting_,how many adopted project areas existed? 2 Of these,how many were merged during year? 0 If the agency has one or more adopted roject areas,complete SCHEDULE HCD-A for each project area. If the agency has no adopted project areas,DO NOT complete SCHEDULE HCD-A(refer to next question). 3. Within an area outside of any adopted project area(s): (a)did the agency destroy or remove any dwelling units or displace any households over the reporting period,(b)does the agency intend to displace any households over the next reporting period,(c)did the agency permit the sale of any owner-occupied unit prior to the expiration of land use controls over the reporting period,and/or (d)did the agency execute a contract or agreement for the construction of any affordable units over the next two years? ® Yes(any question). Complete SCHEDULE HCD-B. ❑ No(all questions). DO NOT complete SCHEDULE HCD-B(refer to next question). 4. Did the agency's Low&Moderate Income Housing Fund have any assets during the reporting period? ® Yes. Complete SCHEDULE HCD-C. ❑ No. DO NOT complete SCHEDULE HCD-C. 5. During the reporting period,were housing units completed within a project area and/or assisted by the agency outside a project area? IT Yes. Complete all applicable HCD SCHEDULES DI-D7 for each housing project completed and HCD SCHEDULE E. ❑ No. DO NOT complete HCD SCHEDULES D I-D7 or HCD SCHEDULE E. 6. Specify whether method A and/or B was used to report financial and housing activity information to HCD: ❑ A. Forms. All required HCD SCHEDULES A,B,C,DI-D7,and E are attached. ® B. On-Iine(http:ii'vww.hcd.ca.gov/rdal)"Lock Report"date: April 6, 2009 HCD SCHEDULES not required. (lock date is shown under "Admin"Area and"Report Change History') 7. To the best of my knowledge: (a)the representations made above e y information reported are correct. April 6, 2009 Date Signature of Authorize ncy Representative Stanley Smalewitz, Deputy Executive Director Title (714) 536-5582 Telephone Number • IFNOT REQUIRED TO REPORT,SUBMIT ONLYA PAPER COPY OF THIS PAGE. • IF REQUIRED TO REPORT,AND REPORTING BY USING PAPER FORMS(IN PLACE OF REPORTING ON-LINE),SUBMIT THIS PAGE AND ALL APPLICABLE HCD FORMS(SCHEDULES A-E) WITHA COPY OF AGENCY'S AUDIT. • IF REPORTING ON-LINE,PRINT AND SUBMIT"CONFIRMATION LETTER"UPON LOCKING REPORT • MAIL A COPY OF(a)CONFIRMATION LETTER(IF HCD REPORT WAS ELECTRONICALLY FILED)OR(b)COMPLETED FORMSAND(c)AUDIT REPORT TO BOTH HCD AND THE SCO: Department of Housing& Community Development The State Controller Division of Housing Policy Division of Accounting and Reporting Redevelopment Section Local Government Reporting Section 1800 3'd Street,Suite 430 3301 C Street.Suite 500 Sacramento,CA 95814 Sacramento, CA 95816 Redevelopment Agency Annual Report-Fiscal Year 2007-2008 HCD-Cover Cover(7/I808) Page I of 1 RDA Reporting System- Confirmation Page 1 of 1 Conformation of Redevelopment Agency On-Line Filing of Annual HCD Report To: State Controller Division of Accounting and Reporting Local Government Reporting Section P.O.Box. 942850 Sacramento, CA 94250 This notice is automatically generated by HCD's On-Line Reporting System. The purpose is to inform and verify to the SCO that the redevelopment agency electronically filed the annual HCD report and HCD, by this notice, electronically received the annual HCD report. Below identifies the reporting redevelopment agency, authorized person who filed the report, and the date and time HCD received the agency's annual report: Redevelopment Agency: HUNTINGTON BEACH Agency Administrator: Terri Ding Date: 04/06/2009 Time: 01:49 pm Note to Redevelopment Agency Send this notice and a copy of the agency's independent auditor's report and financial statement to the SCO at the above address. It is not necessary to submit a paper copy of HCD's reporting schedules to either the SCO or HCD. https://ssw2.hcd.ca.gov/RDA/showLockLetter.j sp 4/6/2009 California Redevelopment Agencies-Fiscal Year 2008/2009 Project Area Contributions to Low and Moderate Income Housing Funds Sch A Project Area Summary Report HUNTINGTON BEACH Tax Incr. Percent Total Project Area 100%of Tax 20%Set Aside Tax Increment Amount Deferral Deposited to of Tax Repayment Other Deposited to Increment Requirement Allocated Exempted Repayment Hsng Fund Incr Dep Deferrals Income Housing HUNTINGTON BCH REDEV $16,828,654 $3,365,731 $3,365,731 $0 $0 $3,365,731 20.00% $0 $0 $3,365,731 PRJCT(MRGED) SO-EAST COASTAL $199,349 $39,870 $39,870 $0 $0 $39,870 20.00% $0 $0 $39,870 REDEVELOP PRJCT Agency Totals: $17,028,003 $3,405,601 $3,405,601 $0 $0 $3,405,601 20.00% $0 $0 $3,405,601 Note: Print this report in Landscape Orientation(Use the Print Icon just above,then Properties then Landscape) Page 1 of 1 04/06/09 California Redevelopment Agencies-Fiscal Year 2008/2009 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Agency HUNTINGTON BEACH Address 2000 Main Street,5th Floor Huntington Beach CA 92648 Project Area HUNTINGTON BCH REDEV PRJCT(MRGED) Type: Inside Project Area Status: Active Plan Adoption: 1996 Plan Expiration Year: 2024 Gross Tax Calculated Amount Amount Amount Total % Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $16,828,654 $3,365,731 $3,365,731 $0 $0 $3,365,731 20.00% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $3,365,731 Project Area SO-EAST COASTAL REDEVELOP PRJCT Type: Inside Project Area Status: Active Plan Adoption: 2002 Plan Expiration Year: 2032 Gross Tax Calculated Amount Amount Amount Total % Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $199,349 $39,870 $39,870 $0 $0 $39,870 20.00% $0 Repayment $0 Category Total Additional Revenue $0 Total Housing Fund Deposits for Project Area $39,870 Agency Totals For All Project Areas: Gross Tax Calculated Amount Amount Amount Total % Cumulative Increment Deposit Allocated Exempted Deferred Deposited Def. $17,028,003 $3,405,600.6 $3,405,601 $0 $0 $3,405,601 20% $0 Total Additional Revenue from Project Areas: $0 Total Deferral Repayments: $0 Page 1 of 2 04/06/09 California Redevelopment Agencies-Fiscal Year 2008/2009 Project Area Contributions to Low and Moderate Income Housing Fund Sch A Project Area Financial Information Total Deposit to Housing Fund from Project Areas: $3,405,601 Page 2 of 2 04/06/09 California Redevelopment Agencies-Fiscal Year 2008/2009 Status of Low and Moderate Income Housing Funds Sch C Agency Financial Summary HUNTINGTON BEACH Adjusted Project Agency Net Other Total *Unen- Unen- Unen- Beginning Area Other Total Resources Housing Housing Encum- cumbered cumbered cumbered Balance Receipts Revenue Expenses Available Fund Assets Fund Assets brances Balance Designated Not Dsgntd $11,302,776 $3,405,601 $504,554 $8,378,655 $6,834,276 $1,362,614 $8,196,890 $0 $6,834,276 $0 $6,834,276 Expenses Planning and Property Subsidies Total Administration Acquisition Costs 2008/2009 $377,552 $522,500 $7,478,603 $8,378,655 "The Unencumbered Balance is equal to Net Resources Available minus Encumbrances Note: Print this report in Landscape Orientation (Use the Print Icon just above,then Properties then Landscape) Page 1 of 1 04/06/09 California Redevelopment Agencies- Fiscal Year 2008/2009 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail HUNTINGTON BEACH Beginning Balance $10,571,463 Adjustment to Beginning Balance $731,313 Adjusted Beginning Balance $11,302,776 Total Tax Increment From PA(s) $3,405,601 Total Receipts from PA(s) $3,405,601 Other Revenues not reported on Schedule A $504,554 Sum of Beginning Balance and Revenues $15,212,931 Expenditure Item Subitem Amount Remark Planning and Administration Costs Administration Costs $250,260 Other $326 Misc Planning and Administrative Costs Professional Services $126,966 Subtotal of Planning and Administration Costs $377,552 Property Acquisition Acquisition Expense $522,500 Subtotal of Property Acquisition $522,500 Subsidies from the LMIHF Other $7,478,603 Loans to non-profit developers for purchase/rehab/re loca ion/fees of afford rental hsg(Jam III/Pacific Ct) Subtotal of Subsidies from the LMIHF $7,478,603 Total Expenditures $8,378,655 Net Resources Available $6,834,276 Indebtedness For Setasides Deferred $0 Page 1 of 3 04/06/09 California Redevelopment Agencies- Fiscal Year 2008/2009 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail HUNTINGTON BEACH Other Housing Fund Assets Category Amount Remark Loan Receivable for Housing Activities $1,362,614 Total Other Housing Fund Assets $1,362,614 Total Fund Equity $8,196,890 2004/2005 $1909236 2005/2006 $2301008 sum of 4 Previous Years' Prior Year Ending Excess Surplus for 2006/2007 $2779435 Tax Increment for 2008/2009 Unencumbered Balance 2008/2009 2007/2008 $3061826 $10051505 $10,571,463 $519,958 Sum of Current and 3 Previous Years'Tax Increments $11,547,870 Adjusted Balance $6,834,276 Excess Surplus for next year $0 Net Resources Available $6,834,276 Unencumbered Designated $0 Unencumbered Undesignated $6,834,276 Total Encumbrances $0 Unencumbered Balance $6,834,276 Unencumbered Balance Adjusted for Debt Proceeds $0 Unencumbered Balance Adjusted for Land Sales $0 Excess Surplus Expenditure Plan No Excess Surplus Plan Adoption Date Site Improvement Activities Benefiting Households Income Level Low Very Low Moderate Total Land Held for Future Development Site Name Num Of Zoning Purchase Estimated Acres Date Start Date Remark Gothard/Hoover Hsg 2.71 09/01/1987 Page 2 of 3 04/06/09 California Redevelopment Agencies- Fiscal Year 2008/2009 Status of Low and Moderate Income Housing Funds Sch C Agency Financial and Program Detail HUNTINGTON BEACH Land Held for Future Development Site Name Num Of Zoning Purchase Estimated Acres Date Start Date Remark 18451 Patterson Lane .17 11/05/2007 Use of the Housing Fund to Assist Mortgagors Income Adjustment Factors Requirements Completed Home $ Hope $ Non Housing Redevelopment Funds Usage Resource Needs LMIHF Deposits/Withdrawls Document Document Custodian Custodian COPY Name Date Name Phone Source ED 07-44 17362 Jacquelyn 07-NOV-07 City of Huntington (714)536-5404 City of Huntington Lane Beach City Clerk Beach City Hall, City Clerk ED 08-29 Pacific Court 07-JUL-08 City of Huntington (714)536-5404 City of Huntington Apts Beach City Clerk Beach City Hall, City Clerk ED 07-11 17362 Koledo 21-MAY-07 City of Huntington (714)536-5404 City of Huntington Lane Beach City Clerk Beach City Hall, City Clerk ED 07-48 18451 Patterson 05-NOV-07 City of Huntington (714)536-5404 City of Huntington Lane Beach City Clerk Beach City Hall, City Clerk ED 06-40 17372 Koledo 16-OCT-06 City of Huntington (714)536-5404 City of Huntington Lane Beach City Clerk Beach City Hall, City Clerk Achievements Description Page 3 of 3 04/06/09 California Redevelopment Agencies-Fiscal Year 2008/2009 Sch D General Project Information HUNTINGTON BEACH Project Area Name: HUNTINGTON BCH REDEV PRJCT(MRGED) Project Name: 17362 Jacquelyn Jamboree III Address: 17362 Jacquelyn Lane Huntington Beach 92647 Owner Name: JHC-Oakview, LLC UNITINVENTORY - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Non-Substantial Rehabilitation Non-Agency Rental Non-Elderly 4 0 0 0 0 4 Unit Total 4 0 0 0 0 4 PROJECT FUNDING SOURCE Funding Source Amount Redevelopment Funds $607,952 Federal Funds $640,848 Project Name: Various Non-Restricted Owner Development Address: Various Addresses, Huntington Beach Owner Name: Various Owners NON ASSISTED PROJECT UNITS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Category vlow low mod amod Building Permit Number Building Permit Date New Constructions 0 0 0 3 C2005-008715 23-JUN-08 C2005-010019 23-APR-08 C2005-008717 22-FEB-08 Page 1 of 2 04/06/09 California Redevelopment Agencies-Fiscal Year 2008/2009 Sch D General Project Information HUNTINGTON BEACH Project Area Name: OUTSIDE PROJECT AREA Project Name: 2200-2222 Delaware Street, Pacific Court Apts Address: 2200-2222 Delaware Street Huntington Beach 92648 Owner Name: Pacific Court Apartments, LC UNITINVENTORY - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Very Low Low Moderate Above Mod Became Total Ineligible Other Provided with LMIHF Unit Substantial Rehabilitation Non-Agency Rental Non-Elderly 23 24 0 0 1 47 Unit Total 23 24 0 0 1 47 PROJECT FUNDING SOURCE Funding Source Amount Redevelopment Funds $8,784,224 Federal Funds $500,000 State Funds $9,347,567 Owner Equity $100 Page 2 of 2 04/06/09 SCHEDULE HCD E CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 3 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units(add lines 6&7) 3 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) 'Totals may be impacted by rounding Page 1 of 1 u California Redevelopment Agencies-Fiscal Year 2008/2009 Sch A/B Project Area Program Information HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT (MRGED) UNITSLOST - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Very Low Low Moderate Above Total Moderate Reporting Period: Current Redevelopment Category Households Removed-Non Elderly 1 2 0 0 3 Reporting Period: Next Other Category Households Permanently Displaced-Non Elderly 0 0 2 0 2 REPLACEMENT HOUSING PLAN Report Period Custodian Name Adoption Date Current 17372/62 Koledo-City of Huntington Beach City Clerk/Econ Dev Dept 28-OCT-08 17362 Jacquelyn-City of Huntington Beach City Clerk/Econ Dev Dept 28-OCT-08 Next 17432- 17442 Keelson Lane, Redevelopment Agency of the City of Huntington 27-MAR-09 Beach Project Area: OUTSIDE PROJECT AREA UNITSLOST Above- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Very Low Low Moderate Moderate Total Reporting Period: Current Redevelopment Category Households Removed-Non Elderly 0 6 3 1 10 Other Category Households Permanently Displaced-Non Elderly 0 6 3 1 10 REPLACEMENT HOUSING PLAN - Report Period Custodian Name Adoption Date Current City of Huntington Beach City Clerk/Director of Econ Dev Dept 08-APR-08 Page 1 of 1 04/06/09 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: 17362 JACQUELYN JAMBOREE III NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units(add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units(line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units(line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units(add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) 'Totals may be impacted by rounding Page 1 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: 17362 KOLEDO JAMBOREE II NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of InclusionaLy Obligation Accrued this Year for Units(line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) *Totals may be impacted by rounding Page 2 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only:Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: 17372 KOLEDO JAMBOREE I NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) *Totals may be impacted by rounding Page 3 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: 17442 KOLEDO LANE JAMBOREE IV NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units(line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) *Totals may be impacted by rounding Page 4 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: ASH STREET CONDOS NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 - 04/06/2009 Schedule E(11/01) 'Totals may be impacted by rounding Page 5 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: BOWEN COURT SENIOR APARTMENTS NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART I [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6 &7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) *Totals may be impacted by rounding Page 6 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only:Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: COLETTE'S 17432-17442 KEELSON LANE NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART I [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units(add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units(add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) 'Totals may be impacted by rounding Page 7 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: COLETTES CHILDRENS HOME 1 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units(add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) `Totals may be impacted by rounding Page 8 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only:Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: COLETTES CHILDRENS HOME 2 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units(line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) `Totals may be impacted by rounding Page 9 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only:Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: INTERVAL HOUSE TRANSITIONAL HOUSING NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units(line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) `Totals may be impacted by rounding Page 10 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: OCCHC -KOLEDO 2 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units(add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 Califomia Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) 'Totals may be impacted by rounding Page 11 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: OCCHC -KOLEDO 3 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units(line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units(line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units(line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) 'Totals may be impacted by rounding Page 12 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: OCCHC -KOLEDO 4 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal - Baseline of Units(add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal - Baseline of Units (add lines 6 &7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) "Totals may be impacted by rounding Page 13 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: OCCHC -KOLEDO 5 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units(line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 - 04/06/2009 Schedule E(11/01) "Totals may be impacted by rounding Page 14 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: PLAZA ALMERIA NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-1D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal- Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) 'Totals may be impacted by rounding Page 15 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: SHELTER FOR THE HOMELESS-BARTON 2 NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units(add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0 PART II [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 0 7. Substantially Rehabilitated Units 0 8. Subtotal- Baseline of Units (add lines 6&7) 0 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11101) 'Totals may be impacted by rounding Page 16 of 17 SCHEDULE HCD E1 CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES (This Form is Information Only: Actual Obligation is based on Implementation Plan) Report Year: 2008/2009 Agency: HUNTINGTON BEACH Project Area: HUNTINGTON BCH REDEV PRJCT(MRGED) Project: VARIOUS NON-RESTRICTED OWNER DEVELOPMENT NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units from forms HCD-D7 which are developed in a project area by any entity (agency or non-agency). PART [H&SC Section 33413(b)(1)] AGENCY DEVELOPED 1. New Units 0 2. Substantially Rehabilitated Units 0 3. Subtotal-Baseline of Units (add line 1 &2) 0 4. Subtotal of Inclusionary Obligation Accrued this Year for Units(line 3 x 30%) 0 5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units(line 4 x 50%) 0 PART 11 [H&SC Section 33413(b)(2)] NON-AGENCY DEVELOPED UNITS 6. New Units 3 7. Substantially Rehabilitated Units 0 8. Subtotal-Baseline of Units (add lines 6&7) 3 9. Subtotal of Inclusionary Obligation Accrued this year for Units(line 8 x 15%) 0 10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0 PART III TOTALS 11. Total Increase in Inclusionary Obligations During This Fiscal Year(add line 4&9) I 0 12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year(add line 5& 10) 0 California Redevelopment Agencies-Fiscal Year 2008/2009 04/06/2009 Schedule E(11/01) `Totals may be impacted by rounding Page 17 of 17 CITY OF HUNTINGTON BEACH Finance Department Dan T. Villella, CPA August 21, 2008 Property Tax Supervisor County of Orange Auditor Controller P.O. Box 567 Santa Ana, CA 92702-0567 Statements of Indebtedness for Tax Year 2008-09 Dear Sir/Madam: Enclosed are the indebtedness statements for the Redevelopment Agency of the City of Huntington Beach as of June 30, 2008. If you need additional information, please contact Dahle Bulosan, Acting Principal Accountant, at(714)536-5648. Sincerely, Robert Sedlak Accounting Manager Enclosures 2000 Main Street, California 92648-2702♦ Phone 714-536-5630♦ Fax 714-374-5365*www.surfcity-hb.org STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2008-09 TAX YEAR REDEVELOPMENT AGENCY FOR THE CITY OF HUNTINGTON BEACH SOUTHEAST COASTAL PROJECT AREA Current Balance Carried Forward From: Total Principallinterest Line Oustanding Debt Due During Tax Year Fiscal Period-Totals From Form A, Page 1 Totals 1 9,167,625 (Optional) Post Fiscal Period-Totals From Form B Totals 2 Grand Totals 3 9,167,625 Available Revenues From Calculation of Available Revenues, Line 7 4 $1,197,898 Net JIM Requirement 5 7,969,727 Consolidate on this form all of the data contained on Form A and B(including supplemental pages).Form A is to include all indebtedness entered Into as of June 30 of the Fiscal Year.Form B maybe filed at the option of the agency, and is to include indebtedness entered into post June 30 of the Fiscal Year,pursuant to Health and Safety Code Section 33675(c)(2).This is optional for each agency and is not a requirement for filing the Statement of Indebtedness.The Reconciliation Statement is to include indebtedness form Form A only. Certification of Chief Financial Officer: Pursuant to Section 33675(b)of the Health and Safety Code. Paul Emery Interim Ci Administrator/Finance Director I hereby certify that the above Is a true and accurate Statement Name .� Title of Indebtedness for the above named agency. Si nature� Date REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Southeast Coastal Project Area TAX YEAR 2008-09 RECONCILIATION DATES; JULY 1,2007 TO JUNE 30, 2008 1. Beginning Balance,Available Revenues $992,871 (See Instructions) 2.Tax Increment Revenues-Gross 205,596 All Tax Increment Revenues,to include any Tax Increment passed through to other local taxing agencies. 3.All other Available Revenues Received $0 (See Instructions) 4. Revenues from any other source, included 40,536 in Column E of the Reconciliation Statement, but not included in(1-3)above S.Sum of Lines 1 through 4 $1,239,003 6.Total amounts paid against indebtedness 41,106 in previous year.(D+E on Reconciliation Statement) 7.Available Revenues, End of Year(5-6) $1,197,898 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE, LINE 4 NOTES Tax Increment Revenues: The only amount(s)to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676.Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be washed in the above calculation, and therefor omitted from Available Revenues at vear end. Item 4.above: This represents my payments form any source other than tax Increment OR available revenues. For instance,an agency funds a project with a bond issue. the previous SOI included a Disposition Development Agreement(DDA) which was fully satisfied with these bond proceeds.The DDA would be shown on the Reconciliation Statement as fully repaid under the'other"column(Col E),but with funds that were neither tax Increment, nor"Available Revenues"as defined.The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending"Available Revenues." STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2008-2009 TAX YEAR Form A f THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Southeast Coastal Project Area For Indebtedness Entered into as of June 30,2008 Tax year 2008-09 Original Data Current Interest Total Total Principal/Interest Debt Indentification Date Princi al Term Rate Interest Outstanding Debt Due During Tax Year A Loan from Merged Project Area 2002/03 302,489 N/A 302,489 B Capital Improvement Pro ram 2002/03 6,505,000 N/A 6,505,000 C Advance General Fund 2002/03 199,946 N/A 227,766 D Low Income Housing Set-Aside 2002/03 N/A Open N/A 1,833 525 41,105 E Capital Improvement Project 2004/05 270,000 N/A 298,845 F G H J Sub Total This Page 9,167,625 41,105 Total Forward From All Other Pages - Totals, Fiscal Year Indebtedness 9,167,625 41,105 Purpose of Indebtedness: (A) Pre-Formation Costs (F) (B) General Fund Loan for Improvement Capital Projects (G) (C) Advances from General Fund-Operating Budget (H) (D) Low Income Set-aside (1) (E) Active projects funded out of General Fund loan (J) I RECONCILIATION STATEMENT-CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Southeast Coastal Project Area ' Reconciliation Dates: From July 1,2007 To June 30,2008 Tax year 2008-2009 A B C D I E F Debt Indentification: Outstanding Debt Adjustments Amounts Paid Against Remaining Sol,page and line: Brief All Beginning Increases Decreases Indebtedness,from: Balance Prior .Yr. Current Yr, Description Indebtedness Attached Explanation) (Attached Explanation) Tax Increment Other Funds (A+B-C-C•D-E) Pg. 1 Pg. 1 Line A Line A Loan from Merged Project Area 302,489 302,489 Pg. 1 Pg. 1 Line B Line B Capital Improvement Program 6,505,000 6,505,000 Pg. 1 Pg. 1 Line C Line C Advance General Fund 218,460 9,306 227,766 Pg, f Pg. 1 Line D Line D Ca ital Im rov. Projects active 286,634 12,211 298,845 Pg. Pg. Line Line Pg. Pg. Line Line Pg. Pg. Line Line - Pg. 1 Pg. 1 Line E 1Llne E Low Income Housin Set-Aside 1,828,146 46,484 41,105 1,833,525 TOTAL THIS PAGE 9,140,729 68,001 - 41,105 - 9,167,625 i TOTALS FORWARD - - GRAND TOTALS 7� 9,140,729 68,001 41,105 - 9,167,625 NOTE: This form Is to reconcile the previous Statement of Indebtedness to the current one being filed.However,since the reconciliation period Is limited by law to a July 1-June 30,fiscal year period,only those Items included an the S01 Form A Is to be included on this document.To assist in following each item of Indebtedness from one Sol to the next,use page and line number references form each Sol that the Item of Indebtedness is listed on.If the Indebtedness Is new to this fiscal year,enter"new"in the"Prior Yr."page and line columns.Column F must equal the current SOI,Form A Total Outstanding Debt column. Adjustments The Redevelopment Agency of the City of Huntington Beach Adjustments of Debt Southeast Coastal Project Area Page 9,Line C&D Increase for accrued interest Page 9,Line E Increase for accrued interest Page,Line E Total Debt Less Low Income Housing 7,334,100 Divide 80% 9,167,625 X 20% Low Income Housing Obligation(Line E,Column F) 1,833,525 Beginning Balance(Line E Column A) 1,828,146 Adjustment Required 5,379 Current Year LIH Set-Aside(Line E, Column D) 41,105 Adjustment(Line E,Column B) 46,484 Page 5 STATEMENT OF INDEBTEDNESS - CONSOLIDATED FILED FOR THE 2008-09 TAX YEAR REDEVELOPMENT AGENCY FOR THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA Current Balance Carried Forward From: Total Principallinterest Line Oustanding Debt Due Durina Tax Year Fiscal Period-Totals From Form A Totals 1 169,949,229 6,209,211 (Optional) Post Fiscal Period-Totals From Form B Totals 2 Grand Totals 3 169,949,229 6,209,211 Available Revenues From Calculation of Available Revenues, Line 7 4 $5,378,722 Net Requirement 5 164,570,507 Im Consolidate on this form all of the data contained on Form A and B(including supplemental pages).Form A is to include all indebtedness entered Into as of June 30 of the Fiscal Year. Form 8 maybe filed at the option of the agency,and is to include indebtedness entered into post June 30 of the Fiscal Year,pursuant to Health and Safety Code Section 33675(c)(2).This Is optional for each agency and Is not a requirement for filing the Statement of Indebtedness.The Reconciliation Statement is to include indebtedness form Form A only. Certification of Chief Financial Officer: Pursuant to Section 33675(b)of the Health and Safety Code. Paul Emery Interim Ci Administrator/Finance Director I hereby certify that the above is a true and accurate Statement Name Title of Indebtedness for the above named agency. 1 /OR Signature pat REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA TAX YEAR 2008-09 RECONCILIATION DATES: JULY 1, 2007 TO JUNE 30, 2008 9. Beginning Balance,Available Revenues $2,269,562 (See Instructions) 2.Tax Increment Revenues-Gross 16,458,615 All Tax Increment Revenues,to include any Tax Increment passed through to other local taxing agencies. 3.All other Available Revenues Received $71,517 (See Instructions) 4. Revenues from any other source, included $0 in Column E of the Reconciliation Statement, but not included in(1-3)above S.Sum of Lines 1 through 4 $18,799,694 6.Total amounts paid against indebtedness 13,420,972 in previous year.(D+E on Reconciliation Statement) 7.Available Revenues, End of Year(5-6) $5,378,722 FORWARD THIS AMOUNT TO STATEMENT OF INDEBTEDNESS, COVER PAGE, LINE 4 NOTES Tax Increment Revenues: The only amount(s)to be excluded as Tax Increment Revenue are any amounts passed through to other local taxing agencies pursuant to Health and Safety Code Section 33676.Tax Increment Revenue set-aside in the Low and Moderate Income Housing Fund will be washed in the above calculation,and therefor omitted from Available Revenues at vear end. Item 4.above: This represents my payments form any source other than tax Increment OR available revenues. For instance, an agency funds a project with a bond issue.the previous SOl included a Disposition Development Agreement (DDA)which was fully satisfied with these bond proceeds.The DDA would be shown on the Reconciliation Statement as Rally repaid under the'other"column(Col E), but with funds that were neither tax Increment, nor "Available Revenues"as defined.The amounts used to satisfy this DDA would be included on line 4 above in order to accurately determine ending"Available Revenues." STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2008-2009 TAX YEAR Form A Page 1 of 3 THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA For Indebtedness Entered into as of June 30,2008 Original Data Current Interest Total Total Principal/Interest Debt Indentifcation Date Principal Term Rate Interest Outstandina Debt Due During Tax Year A General Fund Advance 1985/86 2,016,086 5.60% 1,299,792 899,427 B General Fund Advance 1986/87 761,988 5.60% 649,354 484,404 C General Fund Advance 1987/88 4,093,298 5.60% 3,657,221 1,832,973 D General Fund Advance 1988/89 4,033,406 6.60% 4,599,371 2,947,005 E General Fund Advance 1989/90 1,559,835 5.60% 1,270,779 191,364 F General Fund Advance 1990/91 4,867,001 5,60% 5,350,271 2,232,141 G General Fund Advance 1991/92 698,250 5.60% 698,359 333,488 ,I H General Fund Advance 1992/93 250,116 5.60% 182,699 113,037 (IL General Fund Advance 1993/94 113,656 5.60% 92,133 91,786 J General Fund Advance 1994/95 3,088,374 5.60% 3,119,323 116,183 K Water Fund Advance 1986/87 138,000 5.00% 348,014 481,954 (L) Water Fund Advance 1987/88 1,000,000 5.60%1 2,316,934 3,083,753 Total This Page 12,807,515 Purpose of Indebtedness: (A) General and Administrative (G) General and Administrative (B) General and Administrative (H) General and Administrative (C) General and Administrative (1) General and Administrative (D) General and Administrative (J) General and Administrative (E) General and Administrative (K) Construction of Water Improvements (F) General and Administrative (L) Construction of Water Improvements STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2008-2009 TAX YEAR Form A Page 2 of 3 THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA For Indebtedness Entered into as of June 30,2008 Original Data Current Interest Total Total Principal/Interest Debt indentification Date Principal Term Rate Interest Outstanding Debt Due During Tax Year A B Drainage Fund Advance 1987/88 250,000 5.60% 578,493 575,305 C General Fund Blufftop Advance 1987/88 50,000 5.60% 93,290 22,317 D Land Sales 1983/84 405,536 5.60% 386,686 821,411 E Land Sales 1987/88 1,228,381 5.60% 1,389,872 2,488,078 F Land Sales 1988/89 29,002,000 5.60% 24,385,057 52,396,466 G Land Sales 1989/90 2,267,000 6.60% 2,073,613 4,079,484 H Land Sales 1991/92 3,064,730 5.60% 2,645,451 4,596,227 l Sewer Fund Advance 1989/90 176,000 5.60% 323,724 238,716 J Capital Fund Advance 1989/90 200,000 5.60% 277,114 550,594 Low Income Housing Loan K Property Acquisition 1994/95 1,362,500 5.60% 1,362,500 (L) General Fund Advance 1995/96 3,059 414 5.60% 871,051 868,264 Total This Page 67,999,362 - Purpose of Indebtedness: (A) Street Improvements (G) Land Sold by City to Agency (B) Drainage Improvements (H) Land Sold by City to Agency (C) Blufftop Park Purchase (1) Sewer Improvements (D) Land Sold by City to Agency (J) Capital Improvements (E) Land Sold by City to Agency (K) Property Aquisition (F) Land Sold by City to Agency (L) General and Administrative STATEMENT OF INDEBTEDNESS - FISCAL YEAR INDEBTEDNESS FILED FOR THE 2008-2009 TAX YEAR Form A Page 3 of 3 THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MERGED PROJECT AREA For Indebtedness Entered into as of June 30,2008 Original Data Current Interest Total Total Principal/Interest Debt Indentification Date Principal Term Rate Interest Outstanding Debt Due During Tax Year A Land Sale Emerald Cove 1988/89 1,740,834 5.60% 2,240,226 4,739,072 B Deferred Developer's Fees 1989/90 358,882 5.60% 560,961 658,443 C Mayer Loan 1990/91 4,073,156 496,472 7,102,020 Low Income Housing Loan D ERAF 1992193 517,027 10 yrs. 517,027 Low Income Housing Loan E ERAF 1993/94 139,143 10 Yrs. 214,286 F G Section 108 Loan 2000/01 6,000,000 7.70% 5,443,600 6,855,766 589,138 H 2O02 Tax Allocation Refunding Bonds 2002/03 20,900,000 11,592,171 24,052,197 1,599,986 I Low&Moderate Income Set-Aside 1992/93 N/A Open 33,989,846 3,282,798 i I J 1999 Tax Allocation Refundins Bonds 1998/99 10,835,000 26 Yrs 3-5.05% 7,036,448 11,013,695 737,289 Sub Total This Page 89,142,362 6,209,211 Total Forward From All Other Pages 80,806,877 - Totals, Fiscal Year Indebtedness 169,949,229 6,209,211 Purpose of Indebtedness: (A) land Sale from the City to Emerald Cove (F) (B) Deferred Fees-Emerald Cove (G) Federal Loan for Captial Improvements (C) Relocate Mobile Home Park (H) Defeasance of a final portion of the HBFFA Advance (D) Loan for Payment of ERAF (1) Low&Moderate Income Set-Aside (E) Loan for Payment of ERAF (J) Defeasance of a portion of the HBFFA Advance RECONCILIATION STATEMENT m CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Page 1 of 4 Merged Project Area Reconciliation Dates: From July 1,2007 To June 30,2008 Tax year 2008.09 A B C D E F Debt Indentificatlon: Oustanding Debt Adjustments Amounts Paid Against Remaining Sol,page and line: Brief All Beginning Increases Decreases Indebtedness,from: Balance Prior Yr Current Yr Description Indebtedness (Attached Explanation) (Attached Explanation) Tax Increment Other Funds (A+B-C-C-D-E) Pa. 1 Pa, 1 Line A Line A General Fund Advance 899,427 38,316 38,316 899,427 Pg. 1 Pg. 1 Line B Line B General Fund Advance 484,404 20,636 20,636 484,404 Pg. 1 Pg. 1 Line C Line C General Fund Advance 1,832,973 78,085 78,085 1,832,973 Pg. 1 Pg. 1 Line D Line D General Fund Advance 2,947,005 125,541 125,541 2,947,005 Pg. 1 Pg. 1 Line E Line E General Fund Advance 191,364 8,152 8,152 191,364 Pg. 1 Pg. 1 Line F Line F General Fund Advance 2,232,141 95,089 95,089 2,232,141 Pg. 1 Pg. 1 Line G Line G General Fund Advance 333,488 14,207 14,207 333,488 Pg. 1 Pg. 1 Line H Line H General Fund Advance 113,037 4,815 4,815 113,037 Pg. 1 Pg. 1 Line I Line I General Fund Advance 91,786 3,910 3,910 91,786 Pg, 1 Pg. 1 Line J Line J General Fund Advance 116,183 4,949 4,949 116,183 Pg. 1 Pg, 1 Line K Line K Water Fund Advance 462,261 19,693 481,954 Pg, 1 Pg. 1 Line L 11.1ne L Water Fund Advance 2,957,752 126,001 3,083,753 Pg. 1 Pg. 1 Line M Line M lGas Tax Advance TOTAL THIS PAGE 12,661,821 539,394 393,700 - 12,807,515 I I RECONCILIATION STATEMENT- CHANCES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Page 2 of 4 Merged Project Area Reconciliation Dates: From July 1,2007 To June 30,2008 Tax year 2008-09 A B C D E F Debt Indentiflcation: Oustanding Debt Adjustments Amounts Paid Against Remaining SOI,page and line: Brief All Beginning Increases Decreases Indebtedness,from: Balance Prior Yr Current Yr Description Indebtedness (Attached Explanation) Attached Explanation) Tax Increment Other Funds (A+B-C-C-D-E) Pg. 2 Pg. 2 Line A Line A Drainage Fund Advance 551,798 23,507 575,305 Pg. 2 Pg. 2 Line a Une B General Fund Blufftop Advance 22,317 951 951 22,317 Pg. 2 Pg. 2 Line C Line C Land Sales 823,683 35,089 37,361 821,411 Pg. 2 Pg, 2 Line D Line D Land Sales 2,494,961 106,285 113,169 2,488,078 Pg. 2 Pg. 2 Line E Line E Land Sales 52,541,423 2,238,265 2,383,221 52,396,466 Pg. 2 Pg. 2 Line F une F Land Sales 4,090,770 174,267 185,553 4,079,484 Pg. 2 Pg, 2 Line G Line G Land Sales 4,608,943 196,341 209,057 4,596,227 Pg, 2 Pg. 2 Line H Une H Sewer Fund Advance 228,962 9,754 238,716 Pg. 2 Pg. 2 Line I Line I Ca tial Fund Advance 528,097 22,497 550,594 Pg. 2 Pg. 2 Low Income Housing-Property Line J Line J Acquisition 1,362,500 1,362,500 Pg. 2 Pg. 2 Line K Line K General Fund Advance 868,264 36,988 36,988 868,264 Pg. 2 Pg. 2 Line L Line L Land Sale Emerald Cove 4,546,436 193,636 4,739,072 Pg. 2 Pg. 2 Line M Line M Deferred Developer's Fees 1 631,539 26,904 658,443 TATAL THIS PAGE 1 73,298,693 3,064,484 - 2,966,300 73,396,877 i I RECONCILIATION STATEMENT-CHANGES IN INDEBTEDNESS Redevelopment Agency of the City of Huntington Beach Page 3 of 4 Merged Project Area Reconciliation Dates: From July 1,2007 To June 30,2008 Tax year 2008-09 A B C D I E F Debt indentification: Oustanding Debt Adjustments Amounts Paid Against Remaining 801,page and line: Brief All Beginning Increases Decreases Indebtedness,from: Balance Prior Yr Current Yr Description Indebtedness Attached Explanation) (Attached Explanation) Tax Increment Other Funds (A+B.C-C-D-E) Pg. 3 Pg. 3 Line A Line A Section 108 Loan 7,444,904 589,138 6,855,766 Pg. 4 Pg. 3 Line A Line B Mayer Loan 8,197,516 496,472 1,591,968 7,102,020 Pg. 4 Pg. 3 Low and Moderate Income Loan Line B Line C ERAF 517,027 517,027 Pg. 4 Pg, 3 Law and Moderate Income Loan Una C Line D ERAF 214,286 214,286 Pg. 4 Pg. 3 Line E Line E 2002 Tax Allocation Refund Bond 25,652,183 1,528,470 71,517 24,052,197 Pg. 4 Pg. 3 Line G Line F Low&Moderate Income Set-Aside 34,934,353 2,338,291 3,282,798 33,989,846 Pg. 4 Pg. 3 Line H Line G 1999 Tax Allocation Refund Bond 11,750,984 737,289 11 013,695 Pg. Pa. Line Line Pa. Pg. Line 1LIne Pg. Pg. Line Line _ Pg. Pg. Line Line Pg. Pg. Line ILIne _ Pg. Pg. Line Line TOTAL THIS PAGE 88,711,253 2,834,763 - 7,729,662 71,517 1 83,744,837 RECONCILIATION STATEMENT- CHANGES IN INDEBTEDNESS PAGE 4 OF 4 Redevelopment Agency of the City of Huntington Beach Merged Project Area Reconciliation Dates: From July 1, 2007 To June 30,2008 Tax year 2008-09 A B C D E F Debt Indentlfication: Outstanding Debt Adjustments Amounts Paid Against Remaining Sol,page and line: Brief All Beginning Increases Decreases Indebtedness,from: Balance PriorYr. Current Yr. Description Indebtedness (Attached Explanation) (Attached Explanation) Tax Increment Other Funds (A+B-C-C-D-E Pg. 3 Pg. 4 Line B Line A Pass Through Agreements 1,769,558 1,769,558 Pg. Pg. 4 Line Line B Arbitrage 2,533 2,533 - Pg. New Pg. 4 Line New Line C Interest Ex ense - g. New Pg..Line New Line Admin Expenses_ 487,701 487,701 - Pg. New Pg. Line New Line Pg. Pg. Line Line Pg. Pg. Line Line Pg. Pg. Line Line TOTAL THIS PAGE 2,259,793 - 2,259,793 - TOTALS FORWARD 174,671,767 6,438,641 - 11,089,662 1 71,517 1 169,949,229 GRAND TOTALS 1 174,671,767 8,698,434 13,349,455 71,517 1 169,949,229 NOTE- This form Is to reconcile the previous Statement of Indebtedness to the current one being filed.However,since the reconciliation period Is limited by law to a July 1-June 30,fiscal year period,only those Items Included on the Sol Form A Is to be Included on this document.To assist in following each Item of Indebtedness from one Sol to the next,use page and line number references form each Sol that the Item of Indebtedness is listed on.If the Indebtedness is new to this fiscal year,enter"new"In the"Prior Yr."page and line columns.Column F must equal the current Sol,Form A Total Outstanding Debt column. Adjustments The redevelopment Agency of the City of Huntington Beach Adjustments of Debt Merged Project Area TAX YEAR 2008-09 Page 1,Line A-L, Column A Increase for accrued interest Page 2,Line A-1 and K M, Column A Increase for accrued interest Page 3,Line B and F, Column A Increase for accrued interest Page 3,Line F Total Debt Less Low Income Housing 135,959,383 Divide 80% 169,949,229 X 20% Low Income Housing Obligation 33,989,846 Beginning Balance 34,934,353 Adjustment Required (944,507) Current Year LIH Set-Aside 3,282,798 Adjustment 2,338,291 Page 10 � k 5 "•:$ F� N�� h� f y 1 T.� � ' !K, f�'cif' �. ` f, � K5.1' r+. tlF Y� 1 , 3 3 stsyy+t�� �� a- 1. yns��� '" �C�-gs- i a s =Y OF HUNT0NGTON BEACH, CALF FORNIA ® ©1 R44 s ` r COMPONENT UN�T MHAN=L REPORT `,cFe. 17, i'949'P� B ACCOUNTANTS FOR. THE YEAR ENDED SC PTEMii BEE 30, 2008 Prepared by the Finance Department TABLE OF CONTENTS Tableof Contents...............................................................................................................1 Independent Auditors' Report......................................................................................... 2-3 Management's Discussion and Analysis .......................................................................4-10 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets...........................................................................................11 Statement of Activities and Changes in Net Assets..................................................12 Fund Financial Statements: Balance Sheet— Governmental Funds................................................................13-14 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of NetAssets ............................................................................................................15 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds ........................................................................................16-17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities............................18 Notes to Financial Statements.....................................................................................19-35 Calculation of Low-Moderate Income Housing Funds — Excess Surplus..........................36 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards.................................... 37-38 1 DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS MICHAEL R.IJMIN.CPA A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W SPRAKER,CPA NITIN P.PATE:L.CPA ROBERTI.CALLANAN.CPA 5 CORPORATE PARK,SUITE 100 'PFIILIP H,HOL.TICAMP.CPA PA IRVINE,CALIFORNIA.92606-5165 *HARVEYTHOMAS M.CER OEDER,, PA •HARVEv 1.scHROEor:R,CPA (949)399-0600 o FAX(949)399-0610 KENNETH R..4MES,CPA www.diehlevan8.com •WILLIAM C.PENTZ.CPA February25, 2009 'AMOrMSIONALCORPORATKNv INDEPENDENT AUDITORS'REPORT Board of Directors Redevelopment Agency of the City of Huntington Beach Huntington Beach, California We have audited the accompanying financial statements of the governmental activities and each major fund of the Redevelopment Agency of the City of Huntington Beach, a component unit of the City of Huntington Beach, California as of and for the year ended September 30, 2008, which collectively comprise the Agency's basic financial statements, as listed in the table of contents. These basic financial statements are the responsibility of the Agency's management. Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Controller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a. reasonable basis for our opinions. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Agency as of September 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.. - 2 - OTHER OFFICES A'r: 2965 ROOSEVELT STREET 613 W.VALLEY PARKWAY.SIJTrE 330 CARLSBAD,CALIFORNIA 92008-2389 ESCONDIDO,CALIFORNIA 92025-2598 (760)729-2343 e FAX(760)729-2234 (760)741-3.141•FAX(760)741-9890 In accordance with Government Auditing Standards, we have also issued our report dated. February 25, 2009 on our consideration of the Agency's internal control over financial reporting and our tests of its compliance with.certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion.on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The information identified in the accompanying table of contents as management's discussion and analysis is not a required part of the basic financial. statements, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation. of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Agency's basic financial statements. The calculation of the excess surplus of the Low-Moderate Income Housing Fund is presented for additional analysis and is not a required part of the basic financial statements. This information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole - 3 - Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2008 This discussion and analysis of the Redevelopment Agency of the City of Huntington Beach's (the Agency) financial performance provides an overview of the Agency's financial activities for the fiscal year ended September 30, 2008. Please read it in conjunction with the accompanying basic financial statements and the notes to those financial statements. THE FINANCIAL STATEMENTS The financial statements. presented include activities of the Agency using the integrated approach as prescribed by the Governmental Accounting Standards Board (GAS.B) Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis - for State and Local Governments. The financial statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. Notes to the financial statements, required supplementary information, including this section support these statements. All sections must be considered together to obtain a complete understanding of the financial position of the Agency. Statement of Net Assets — The Statement of Net Assets includes all assets and liabilities of the Agency, with the difference between the two reported as net assets. Assets and Liabilities are reported at their book value on an accrual basis, as of the statement date. It also identifies major categories of restrictions on the net assets of the Agency. Statement of Activities and Changes in Net Assets — The Statement of Activities and. Changes in Net Assets presents the revenues earned and expenses incurred during the year on an accrual basis. These two statements report the Agency's net assets and changes in them. Net assets are the difference between assets and liabilities, which is one way to measure the financial health, or financial position. FUND FINANCIAL STATEMENTS The Agency uses fund accounting. A fund is defined as an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein. Funds are established in order to comply with State law; bond covenants; other special regulations, restrictions, limitations or legal responsibilities; or simply as.a tool for management to control and manage the Agency's resources. The fund financial statements provide detailed information about the most significant funds — not the Agency as a whole.. These funds are reported using the modified accrual basis of accounting, rather than on the full accrual basis. In the modified accrual basis, revenues are recognized in the period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally.60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the 4 See Independent Auditors' Report and Notes to the Financial Statements Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2008 Agency are, property tax, other taxes, investment income, and other income. Expenditures are recorded in the accounting period in which the related fund liability is incurred. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. GOVERNMENT-WIDE FINANCIAL ANALYSIS The Agency's combined net assets for the year ended September 30, 2008, were a negative $(86,982). Under state law, Redevelopment Agencies' primary source of revenue is from tax increments that are derived from the increase in public and private investments due to the improvements in the properties that fall with in the boundaries of a redevelopment project. These tax increment revenues are not sufficient to finance the activities of the Agency therefore the Agency issues bonds. These bonds are to be repaid over time solely from tax increments revenues. Redevelopment Agencies can only collect property tax increments to the extent it has debt on its books. Below is a summary of key items in the Government Wide financial analysis (in thousands): Percent Increase 2008 Amount 2007 Amount Increase(Decrease) (Decrease) Assets Current and Other Assets $ 50,248 $ 47,870 $ 2,378 5.0°% Capital Assets 19,835 19,835 0.0% Total Assets 70,083 67,705 2,378 3.6 Liabilities Current Liabilities 22,303 12,072 10,231 84.7% Debt Payable to City of Huntington Beach 84,936 85,369 (433) -0.5% Long-Term Liabilities Payable within one year 1,530 1,480 50 3.4% Long-Term Liabilities 48,296 50,378 (2,082) .-4.1% Total Liabilities 167,065 149,299 7,766 5.2% Net Assets Invested in Capital Assets- Net of Related Debt 17,153 17,153 0.0% Restricted 5,113 10,135 (5,022) 49.6% Unrestricted (109,248) (108,882) (366) 0.3% Total Net Assets (86,982) (81,694) (5,388) 6.6% Expenses Economic Development 17,871 5,182 12,689 244.9% City Attorney 110 88 22 25.0% Community Services 36 - 36 N/A Public Works 218 179 39 21.8% Non-departmental and Transfers 183 198 (15) -7.6% Interest 6,580 7,739 (1,159) -15.0% Total Expenses 24,998 13,386 11,612 86.7% Revenues Property Taxes 17,448 17,510 (62) -0.4% Use of Money and Property 2,127 2,690 (563) -20.9% Participation Payments - 1,564 (1,564) -100.0% Other 35 9 26 288.9% Total Revenue 19,610 21,773 (2,163) -9.9% Excess of Revenue over Expense (6,388) 8,387 (13,776) 164.2% . Transfers - - - N/A Net Assets-Beginning of Year (81,594) (89,981) 8,387 -9.3% Net Assets-End of Year $ (86,982) $ (81,694) $ (6,388) 6.6% 5 See Independent Auditors' Report and Notes to the Financial Statements Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2008 Current liabilities have increased $10,231,000 as a result of recording deferred revenue to offset low-income housing loans made by the Agency. Expenses related to Economic Development have increased $12,689,000 as a result of spending on capital projects within the redevelopment area. FUND FINANCIAL ANALYSIS Below is an analysis of the Agency's various fund financial activities (in thousands): Percent Increase 2008 Amount 2007 Amount Increase(Decrease) (Decrease) Huntington Beach Project Area#1 Total Assets $ 18,264 $ 24,384. $ (6,120) -25.1% Total Liabilities 2,340 2,437. (97) 1-4.0% Net Assets 15,924 21,947 (61023) -27.4% Revenues 1,446 3,390 (1,944) -57.3% Expenditures 7,469 1,886 5,583 296.0% Southeast Coastal Project Area Total Assets - - - N/A Total Liabilities 261 190 71 37.4% Net Assets (261) (190) (71) 37.4% Revenues - - - N/A Expenditures 71 11 60 545.5% Low-Income Housing Fund Total Assets 29,252 24,119 5,133 21.3% Total Liabilities 21,054 11,453 9,601 83.8% Net Assets 8,198 12,666 (4,468) -35.3% . Revenues 505 641 (136) -21.2% Expenditures 8,378 1,539 6;839 444.4% Debt Service Fund-Huntington Beach Project Area#1 Total Assets 6,985 6,511 474 7.3% Total Liabilities 4,327 5,972 (1,645) -27.5% Net Assets 2,658 1 539 2,119 393.1% Revenues 17,002 15,204 1,798 11.8% Expenditures 11,518 12,270 (752) -6.1% Debt Service Fund-Southeast Coastal Project Area Total Assets 1,299 1,147 152 13.3% Total Liabilities 302 305 (3) -1.0% Net Assets 997 842 155 18.4%. Revenues 238 337 (99) -29.4% Expenditures 43 56 (13) -23.2% 6 See Independent Auditors' Report and Notes to the Financial Statements Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended.September 30; 2008 DEBT ADMINISTRATION A summary of.the Agency's debt at year-end is (in thousands): Percent Increase 2008 Amount 2007 Amount Increase(Decrease) (Decrease)' Debt Payable to City of Huntington Beach $ 84,936 $ 85,369 $ (433) -0.5% Bonds Payable 23,660 .24,885 (1,225). -4.9% Notes Payable 4,725 %4,980 (255) -5.1% Disposition and Development Agreement 21,342 21,956 (614) -2.8% Other Debt 99 37 62 167.6% Total Debt $ 134,762 $ 137,227 $ (2,465) -1.86/. CAPITAL ASSETS The Agency's capital assets consist of land of $1.7,153,000. This amount is recorded as part of the net capital assets of the Agency in the Govern ment-Wide.financial statements: OTHER INFORMATION Below is a description of the some of the Agency's activities during the year. Huntington Beach (Merged Project Area) The Strand is a mixed-use project developed by CIM Group on a 3-acre site in .the downtown area. With views of Huntington Beach and the pier, it is located on Pacific. Coast Highway, north of Main Street. A Sixth Implementation Agreement and the.33433 Report were adopted by the City Council and Redevelopment Agency in November 2008. The Strand's four distinct buildings will be linked by open-air pedestrian walkways. The Strand will offer approximately 110,000 square feet of retail and office space. The Shorebreak Hotel is a 157-room luxury boutique hotel operated by Joie de Vivre Hospitality. Ample parking will be provided in a subterranean structure. Retail tenants include Forever 21, CVS, Marilee's Swimwear, Rip Curl, .and Active Ride. Dining options include Johnny Rockets, RA Sushi, and New Zealand Natural Ice Cream. Portions of the retail development and parking structure opened in November 2008, the hotel will open in April 2009. Pacific City is being developed by Makar Properties on a 31-acre site at Pacific Coast Highway and First Street: A Community Facilities District is proposed to fund the majority of the street enhancements and Regional Urban. Runoff Treatment .System for the. residential portion of the project. There will be 516 upscale residential housing units built in four phases, ranging from 969 to 2,500 square feet. The residential village, ,totaling 17.2 acres and consisting of four distinct styles, will act as the cornerstone of Pacific City, allowing residents close access to shops, restaurants with . 48,900 square feet of restaurant space and 30,000 square feet of office space.. This community will encompass 191,000 square feet of the retail center featuring luxurious retail brands, prime office space, dining, and entertainment. Pacific City is expected to.open in late 2011. The "W" 7 See Independent Auditors' Report and Notes to the-Financial.Statements Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis ✓ For the Year Ended September 30, 2008 is the hotel operator for the boutique hotel that will feature 157 rooms and is expected to . open by 2011, and will be the first W hotel in Orange County and the first.oceanfront W. Surf City Nights is a street fair/farmer's market that takes place from 5 p.m. 9 p.m. on Tuesday nights in the first three blocks of downtown Main Street between Pacific Coast Highway and Orange Avenue. Surf City Nights began as. a three-month trial street closure of Main Street and developed into a weekly, year-round event. The fair was created by a partnership between the City of Huntington Beach and the Downtown Business Improvement District. The Downtown Business Improvement District now maintains the Surf City Nights. Due to the success of the event, residents and visitors regularly take an evening stroll and dine at local restaurants. The street fair includes a farmer's market, live entertainment, children's activities, retail sales, food,arts, and crafts. Surf City Nights headlined as the second biggest story of the year in the Orange County.. Register and local LA Times December issue and won the 2008 CALED statewide Grand Prize Award of Excellence for Economic Development Partnership. Bella Terra, formerly known as Huntington Center, which was an outdated 56.5-acre retail property, has been transformed into an entertainment/life style center. In 2005, while the mall was still under construction, Bella Terra Associates LLC, a partnership between DJM Capital and Jh Snyder, purchased the property. The Redevelopment Agency approved Bella Terra Associates LLC to assume the rights and responsibilities of the Owner Participation Agreement in order to complete the project. The First Implementation Agreement to the OPA terminated the vacant Montgomery Wards parcel from the OPA and provided for a $1.5 million implementation fee to the Agency. With the approval of the Second Implementation Agreement on September 17, 2007, the Agency was required to commence payment of its obligation of $15 million to the developer. The balance of these obligations is $14,532,000 as of September 30, 2008. The approximate 1,532 space public parking garage, funded by the Community Facilities District 2003-1 (Huntington Center), opened on October 1, 2005. Bella Terra. Associates LLC also purchased the former Montgomery Wards 13.5 acre portion of the site that has been,left vacant for a number of years. DJM Capital has amended the specific plan and environmental impact report and has been entitled.to develop The Crossings at Bella Terra, a mix-use project that will consist of 156,000 square feet of retail and 503-700 residential units. Negotiations continue to assist the developer in commencing the development of the project within the next two years. Specific and Economic Revitalization Plan for Beach Boulevard and Edinger Corridor -- On December 18, 2006, the Agency approved a professional services agreement with Tierra West Advisors, LLC for the preparation of an Economic Revitalization Strategic Plan to enhance and maximize the potential of these major thoroughfares. The analysis is supporting the proposed land-use changes that are based upon economic trends and community goals. In support of long range planning efforts, the work is being conducted in conjunction with planning firm Freedman, Tung and Bottomley (FTB) for the Specific Plan and Land Use/Planning aspects. Five community meetings have been conducted and the environmental review process has begun for the Draft Specific Plan area. The Hearing Draft of the Beach Edinger Specific Plan. and Environmental Impact Report are due in Fall of 2009. 8 See Independent Auditors' Report and Notes to the Financial Statements n, Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2008 Downtown Specific Plan (DTSP) and Downtown Parking Master Plan -= On July 16; 2007, the Agency approved professional services contracts with RRM Design Group and Kimley-Horn and Associates, Inc. (KHA) to provide consulting services for the update to the Downtown Specific Plan (DTSP) and Downtown Parking Master Plan (DPMP). RRM Design Group is responsible for developing land use provisions and urban design guidelines that support and encourage a mixed-use development community. The planning consultant is working with KHA; a traffic/parking consultant that specializes in the analysis of parking in a downtown setting, who has the responsibility of amending the DPMP. Four community meetings have been held and the environmental review process is underway. The first public hearings on the Draft Downtown Specific Plan and Environmental Impact Report will be in June 2009: The Hyatt Regency Huntington. Beach Resort and Spa -- The 517-room Hyatt,. Regency Huntington Beach Resort & Spa and its Conference Center opened for business on January 19, 2003. Developer's Advance Loan Balance is$6,810,000 as of September 30, 2008. The hotel paid its second Participation Payment to the Agency during this past year. A Third Implementation Agreement to the Disposition and Development Agreement (DDA) has been negotiated between the Redevelopment Agency ("Agency") and Mayer: Financial, L.P. ("Developer") in October 2008. The DDA provides. for the phased disposition and development of the Waterfront Project. The Third Implementation Agreement relates to the timeframe for development of Parcel C, which is the land located between the Waterfront Hilton and the Hyatt Resort and Spa and will result in a third hotel at this location. Each extension also.requires a payment of $250;000 from the . Developer.to the City to compensate for an estimated loss in Transient. Occupancy Tax (TOT) that the City would have received as a result of the additional hotel.. . The project also pays lease payments to the Agency on an annual basis. Capital Improvements/Facilities -- The one time revenue of $19 Million from the Redevelopment Agency's participation payments from the.Waterfront Residential project is funding various public improvements within the City's Merged Redevelopment Project Area. . .The revenue received during.2004-2006 will be expended .over several years through the City's Capital Improvement Program (CIP). .Through the CLP, approximately $18 Million has been allocated for capital projects that include the Civic Center seismic retrofit (matched with FEMA funds), drainage improvements, concrete and asphalt replacement, streetlight replacements, restrooms north of the pier, permanent buildings on the pier, a visitor's kiosk at the Pier Plaza, internal building modifications for the Main Street Library, and fire station renovations. The Surf City Nights project was also funded through this revenue source. Southeast Coastal Project Area Utility Undergrounding -- Southern California Edison is taking the lead in doing" the design work for under-grounding the..Edison utilities along PCH and is working with City staff, CalTrans, and the California State Beaches.Department. Seawater Desalination Facility -- The Redevelopment Agency approved an Owner Participation Agreement (OPA), dated February 27, 2006, with Poseidon Resources 9 See Independent Auditors' Report and Notes to the Financial Statements Redevelopment Agency of the City of Huntington Beach Management's Discussion and Analysis For the Year Ended September 30, 2008 Corporation to provide for the development of a seawater desalination plant on property leased from the AES Corporation. The Agreement containing the covenants affecting the real property was recorded on June 8, 2006. AES is in the process of removing storage tanks on this property. California Coastal Commission approval is required for the project to be approved. Magnolia Street Sidewalk & Lighting -- The construction has begun for the sidewalk and installation of pedestrian lighting on both sides of Magnolia Street. The Agency funded was.included in the Capital Improvement Program(CIP) budget for $50,000. Housing Activities Jamboree Housing I, 11, III, and IV -- The Agency and City of Huntington Beach assisted Jamboree Housing Corporation, an Orange County based non-profit housing developer and designated CHDO (Community Housing Development Organization), to acquire and rehabilitate three apartment buildings in the Oakview sub-area, two five-unit buildings and one four-unit building. This represents the first acquisition/rehab projects developed in the City of Huntington Beach by Jamboree and one of several housing projects planned for the Oakview sub-area using HOME and redevelopment housing set-aside funds. The City and Agency are also in the process of assisting Jamboree with the acquisition of a fourth property, a four-unit building that will close escrow after the 2007-08 fiscal year. Jamboree will provide on-site management and tenant services for the tenants they serve as more properties are acquired and rehabilitated. Pacific Court -- In 2008, the Agency expended $7 million dollars in Set-Aside funds and $500,000 in HOME funds to help a non-profit housing developer acquire a 48-unit apartment complex located at 2200 Delaware Avenue. The units and grounds, now known as Pacific Court, are to be fully rehabilitated by 2010, providing affordable housing for 47 very low and low-income families. Garfield/Delaware, Heil Affordable Housing Project -- The City of Huntington Beach acquired property at the northeast corner of Delaware Street and Garfield Avenue and several homes adjoining.Heil Avenue as part of street widening projects. It is expected that the Agency will purchase the property from the City and thereafter develop affordable housing on the parcels. It is anticipated that the project will be presented to the Agency and City Council sometime during fiscal year 2009-2010. CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the Agency's finances and to show the Agency's. accountability for the money it receives. If you have questions about this report or need any, additional financial information, please contact the Finance Department: at 2000 Main Street, Huntington Beach, California, 92648-2702, phone (714) 536-5360, or e-mail cgonzales@surfcity-hb.org. You can also visit the City's website at www.surfcity-hb.org for additional copies of this report. 10 See Independent Auditors' Report and Notes to the Financial Statements REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF NET ASSETS SEPTEMBER 30, 2008 (In Thousands) Governmental Activities ASSETS Current Assets: Cash and Investments $ 21,583 Restricted Cash with Fiscal Agent 2,409 Taxes Receivable 4,557 Other Receivables 21,399 Other Assets 300 Total Current Assets 50,248 Non-Current Assets: Land Held for Resale 2,682 Capital Assets(non-depreciable) 17,153 Total Non-Current Assets 19,835 TOTAL ASSETS 70,083 LIABILITIES Current Liabilities: Accounts Payable and Accrued Liabilities 831 Accrued Interest Payable 260 Accrued Payroll 36 Deposits 130 Unearned Revenue 21,046 Long-Term Debt-Due Within One Year 1,530 Total Current Liabilities 23,833 Non-Current Liabilities: Long-Term Debt to the City of Huntington Beach and Component Units 84,936 Other Long-Term Debt 48,296 TOTAL LONG-TERM LIABILITIES 133,232 TOTAL LIABILITIES 157,065 NET ASSETS Investment in Capital Assets 17,153 Restricted for: Low-Income Housing 5,113 Unrestricted (109,248) TOTAL NET ASSETS(DEFICIT) $ (86,982) See Independent Auditors' Report and Notes to the Financial Statements 11 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2008 (In Thousands) Net(Expense) Revenue and Changes in Program Revenues Net Assets Charges for Operating Capital Grants Total Current Grants and and Governmental Expensesl Service Contributions Contributions Activities Functions/Programs Governmental Activities: Economic Development $ 17,871 $ - $ - $ - $ (17,871) City Attorney 110 - - - (110) Community Services 36 - - - (36) Public Works 218 - - - (218) Non-departmental 183 - - - (183) Interest on Long-Term Debt 6,580 - - - (6,580) Total Governmental Activities 24,998 - - - (24,998) General Revenues: Taxes: Property Taxes 17,448 Other Revenue: Use of Money and Property 2,127 Other 35 Total Other Revenue 2,162 Total General Revenues 19,610 Change in Net Assets (5,388) Net Deficit-October 1,2007 (81,594) Net Deficit-September 30,2008 $ (86,982) See Independent Auditors' Report and Notes to the Financial Statements 12 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2008 (In Thousands) Capital Projects Funds Huntington Southeast Low-Income Total Capital Beach Project Coastal Housing Projects ASSETS: Area#1 Project Area Fund Funds Cash and investments $ 13,802 $ - $ 6,490 $ 20,292 Restricted cash with fiscal agent - - - - Duefromotherfunds 1,205 - - 1,205 Taxes receivable - - - - Other receivables 273 - 21,099 21,372 Advances to other funds 302 - 1,363 1,665 Other assets - - 300 300 Land held for resale, net 2,682 - - 2,682 TOTAL ASSETS 18,264 - 29,252 47,516 LIABILITIES AND FUND BALANCE LIABILITIES: Accounts payable and accrued liabilities $ 823 $ 8 $ - $ 831 Accrued payroll 24 4 8 36 Due to Other Funds - 249 - 249 Deposits 130 - - 130 Deferred property taxes - - - - Deferred revenue - - 21,046 21,046 Advances from other funds 1,363 - - 1,363 TOTAL LIABILITIES 2,340 261 21,054 23,655 FUND BALANCE: Fund balances: Reserved for long-term receivables 424 - - 424 Reserved for encumbrances 1,838 - 1,722 3,560 Reserved for advances to other funds 302 - 1,363 1,665 Reserved for land held for resale 2,682 - - 2,682 Reserved for low-income housing - - 5,113 5,113 Reserved for future expenditures - - - - Total Reserved 5,246 - 8,198 13,444 Unreserved 10,678 (261) - 10,417 TOTAL FUND BALANCE 15,924 (261) 8,198 23,861 TOTAL LIABILITIES AND FUND BALANCE $ 18,264 29,252 47,516 See Independent Auditors' Report and Notes to the Financial Statements 13 Debt Service Funds Huntington Southeast Total Debt Beach Project Coastal Service Total All Area#1 Project Area Funds Funds $ - $ 1,291 $ 1,291 $ 21,583 2,409 - 2,409 2,409 - - - 1,205 4,557 - 4,557 4,557 19 8 27 21,399 - - - 1,665 - 300 - - - 2,682 6,985 1,299 81284 55,800 $ - $ - $ - $ 831 - - - 36 956 - 956 1,205 - - - 130 3,371 - 3,371 3,371 - - 21,046 - 302 302 1,665 4,327 302 4,629 28,284 - - - 424 - - 3,560 - - 1,665 - - 2,682 - - - 5,113 2,658 997 3,655 3,655 2,658 997 3,655 17,099 - 10,417 2,658 997 3,655 27,516 6,985 1,299 8,284 55,800 See Independent Auditors' Report and Notes to the Financial Statements 14 This page intentionally left blank RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2008 (In Thousands) Total Fund Balances Governmental Funds $ 27,516 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not current financial resources and,therefore, are not reported in the funds 17,153 Property tax revenues collected more than 60 days after fiscal year are not current financial resources and,therefore are deferred in the funds 3,371 Accrued interest payable on Long-term Debt (260) Long-term Liabilities, including bonds and certificates of participation payable are not due and payable in the current period and therefore are not reported in the funds (134,762) Net Assets(Deficit)of Governmental Activities $ (86,982) See Independent Auditors' Report and Notes to the Financial Statements 15 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES — GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008 (In Thousands) Capital Projects Funds Huntington Southeast Low-Income Total Capital Beach Project Coastal Housing Projects REVENUES: Area#1 Project Area Fund Funds Tax increment(Note 4) $ - $ - $ - - Use of money and property 1,430 - 505 1,935 Other revenue 16 - - 16 TOTAL REVENUES 1,446 - 505 1,951 EXPENDITURES: Current: Economic Development 1,938 43 7,361 9,342 City Attorney 110 - - 110 Community Services 36 - - 36 Public Works 218 - - 218 Non-departmental - - - - Capital outlay 5,167 28 1,017 6,212 Debt service: Bond&Other Debt: Principal - - - - Interest - - - - TOTAL EXPENDITURES 7,469 71 8,378 15,918 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (6,023) (71) (7,873) (13,967) OTHER FINANCING SOURCES(USES): Transfers in - - 3,405 3,405 Transfers out - - - - TOTAL OTHER FINANCING SOURCES(USES) - - 3,405 3,405 NET CHANGES IN TOTAL FUND BALANCE (6,023) (71) (4,468) (10,562) FUND BALANCES-BEGINNING OF YEAR 21,947 (190) 12,666 34,423 FUND BALANCES-END OF YEAR $ 15,924 $ (261) $ 8,198 $ 23,861 See Independent Auditors' Report and Notes to the Financial Statements 16 Debt Service Funds Huntington Southeast Total Debt Beach Project Coastal Service Total All Area#1 Project Area Funds Funds $ 16,830 $ 199 $ 17,029 $ 17,029 153 39 192 2,127 19 - 19 35 17,002 238 17,240 19,191 2,274 43 2,317 11,659 - - - 110 36 - - - 218 183 - 183 183 - - - 6,212 7,579 - 7,579 7,579 1,482 - 1,482 1,482 11,518 43 11,561 27,479 5,484 195 5,679 (8,288) - - - 3,405 (3,365) (40) (3,405) (3,405) (3,365) (40) (3,405) - 2,119 155 2,274 (8,288) 539 842 1,381 35,804 $ 2,658 $ 997 $ 3,655 $ 27,516 See Independent Auditors' Report and Notes to the Financial Statements 17 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES September 30, 2008 (In Thousands) Net Changes in Fund Balances-Total Governmental funds $ (8,288) Amounts reported for governmental activities in the Statement of Activities are different because: Accrual of Revenues - Certain revenues in the Statement of Activities do not meet the "availability" criteria for revenue recognition in the governmental funds and are not reported in the governmental funds as revenue Current Year Property Tax Accrual 3,371 Prior Year Property Tax Accrual (2,952) Liabilities not Liquidated with Current Resources — Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Current Year Interest Accrual (260) Prior Year Interest Accrual 276 Long-Term Debt Proceeds-Issuances and changes in long-term debt(bonds, leases, certificates of participation, compensated absences,etc)provide current financial resources to governmental funds, while repayments of this debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums,discounts,etc.when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. (5,114) Payments of Long-Term Debt-Principal payments on long-term debt are recorded as an expenditure in the governmental funds and a reduction of liability in the government-wide statements. 7,579 Change in Net Assets of Governmental Activities $ (5,388) See Independent Auditors' Report and Notes to the Financial Statements 18 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 1. ORGANIZATION The Redevelopment Agency of the City of Huntington Beach (the Agency) is a blended component unit of the City of Huntington Beach (the City). The City Council is the governing board of the Agency. The Agency was formed by ordinance in 1967 to encourage private development of areas that are considered blighted. The. Agency adopts project areas, by public. votes, which qualify under the California Health and Safety Code. The following project areas have been adopted: Project Area Year Adopted Status Main/Pier 1982 (amended in 1983) Merged into Huntington Beach Project Area#1 Talbert/Beach 1982 Merged into Huntington Beach Project Area #1 Oakview 1982 (amended in.1989) Merged into Huntington Beach Project.Area #1 Yorktown/Lake 1982 Merged into Huntington Beach Project Area #1 Huntington Center 1984 Merged into Huntington Beach Project Area #1 Huntington Beach 1997 Created from five existing Project Area #1 project areas Southeast Coastal 2002 Began operations in 2002 Project Area The Agency's project area requires that 20% of tax increment revenue be used to promote affordable housing citywide. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Government—Wide.Financial Statements The Agency's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of Governmental activities for the Agency accompanied by a total column. Fiduciary activities of the Agency are not included in these statements. These statements are presented on an "economic resources' measurement focus and the accrual basis of accounting. Accordingly, all of the Agency's assets and liabilities, including capital assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. 19 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) a. Government—Wide Financial Statements (Continued) The statement of activities demonstrates the degree with which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect. expenses are allocated to the various functions based on a proportionate use of services. The types of transactions reported as program revenues for the Agency are reported in three categories: 1) charges for services, 2) operating grants and other. contributions, 3) capital grants and other contributions. Taxes and other items not properly included among program revenues are reported as general revenues. Government-Wide financial statements do not provide information by fund or account group. They simply distinguish between governmental and business activities. All of the Agency's activities are governmental activities. The Agency's Statement of Net Assets includes both current and non-current assets and liabilities. Financial Statement Classification In the Government-Wide financial statements, net assets are classified in the following categories.- Invested In Capital Assets, Net of Related Debt — This category groups all capital assets, including infrastructure, into one component of net :assets. Accumulated depreciation and the outstanding balances of debt that are attributable to the. acquisition, construction, or improvement of these assets reduce this category. Restricted Net Assets — This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. This category presents restrictions placed on the categories of Capital Projects, Debt Service, and Specific Projects and Programs as established by the City Council. Unrestricted Net Assets — represent the net assets of the Agency, not restricted for any project or other purpose. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. 20 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended.September 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) b. Fund Financial Statements In the Funds financial statements, reserves and designations segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various designations are established by actions of the City Council and. Management and can be increased, reduced or eliminated by similar actions. Measurement Focus, Basis of Accounting, and Financial Statement Presentation All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting: Only current assets and current liabilities are included on the. Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are.recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Agency, are property taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. All Agency funds are reported as major funds: Capital Project Funds: • Huntington Beach Project Area #1 • Southeast Coastal Project Area • Low-Income Housing Fund Debt Service Funds: • Huntington Beach Project Area #1 • Southeast Coastal Project Area 21 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) b. Fund Financial Statements (Continued) Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances. An. accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net assets presented in the Government-Wide Financial Statements. c. Investment Income Allocation The City of Huntington Beach allocates investment income to funds based on month- end cash balances. Since the Agency pools its cash with the City (see Note 3), the Agency receives monthly allocations of investment income. d. Special Agency Accounting The Agency follows the special accounting procedures required by the California Health and Safety Code. These procedures comply with generally accepted accounting principles for governmental agencies. e. Self-Insurance The Agency is self-insured through the City of Huntington Beach. All required information is included in the City of Huntington Beach Comprehensive Annual Financial Report for the year ended September 30, 2008. f. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure, are reported in the governmental activities column in the Government-Wide financial statements. Capital assets have an acquisition cost of $50,000 or greater and a useful life of two years or more. The Agency records all purchased capital assets at historical cost (where historical records are available) and at estimated historical cost where no historical records exist. The Agency's only capital asset is land. g. Interfund Transactions As a general rule, interfund transactions have been eliminated from the Government- Wide financial statements. These interfund transactions would distort the direct costs and program revenues for the various functions. 22 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements ' ? For the Year Ended September 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) h. Long Term Obligations In the Government-Wide financial statements, long-term obligations are recorded as liabilities in the governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the debt. In the governmental fund financial statements, bond discounts and premiums are recognized . as an other financing source or use. Issuance costs, are recorded as current year expenditure. i. Employee Compensated Absences The Agency records the cost of all accumulated and unused leave time. (vacation, sick, comp) as a liability when earned in the Government-Wide financial statements. Liabilities for these amounts in the governmental funds are only recorded if they have matured (employee resignations or retirements). j. Property Tax Revenue Property tax in California is levied according to Article 13-A of .the California Constitution. The basic levy is a countywide-levy of one percent of total assessed valuation and is allocated to county governments, school districts, cities and special districts. Additional levies require two-thirds approval by voters and are allocated directly to the specific government. In the Government-Wide financial statements, property tax is recorded when earned, regardless of when levied, due, or received. In the fund financial statements, property tax revenue is recognized in the fiscal year levied provided that revenue is collected in time to pay current year liabilities. Deferred property tax revenue represents property taxes related to the current fiscal year that are collected more than 60 days after the fiscal year end. Since the Agency's fiscal year differs from the County's property tax year, there is a difference between the. property tax revenue .recorded on the fund financial statements and the Government-Wide financial statements which is noted as a reconciling item in both the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities and the Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets. The County acts as a collection.agent for property tax for all of the local governmental units. Property taxes are normally collected twice per year. The property tax calendar is as follows. 23 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) j. Property Tax Revenue (Continued) • Lien Date - January 1 - Prior Fiscal Year • Levy Date -July 1 - Prior Fiscal Year • Due Date - First Installment - November 10 • Due Date - Second Installment - February 10 • Delinquent Date - First Installment- December 10 • Delinquent Date - Second Installment - April 10 The taxes are paid to the local governments periodically during the year. Below are the dates of the payments from the County: ® Payments of First Installment November to December • Balance of First Installment February 1 • Payments of Second Installment March to April • Balance of Second Installment July 26 k. Estimates The accompanying financial statements require management to make estimates and assumptions that effect certain report amounts and disclosures. Actual results could: differ from those estimates. 3. CASH AND INVESTMENTS The Agency's cash and investments are pooled with the City. The Agency holds a proportionate interest in the amount of $21,583,000. The Restricted Cash with Fiscal Agent, totaling $2,409,000 is made up of GIC and money market accounts. The GIC providers are rated by Standard and Poor's at AAA and AA and Aaa or Aa respectively. Standard and Poor's and Moody's have rated the money market funds in the Agency's portfolio as AAA. The Restricted Cash with Fiscal Agent that is in LAW or money market accounts is due upon demand while the amount with GIC has a maturity of over five years. For further information such as credit risk and categorization of the cash and investments, see the City's Comprehensive Annual Financial Report for the fiscal year ended September 30, 2008. 24 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 4. TAX INCREMENT REVENUE AND FINANCING The Agency's primary source of revenue is tax increment. Tax increment revenue is computed as follows: • When a project area is adopted, the County of Orange Auditor/Controller freezes. all of the existing property's assessed value. The County distributes taxes, received from this frozen valuation to the various governmental agencies as if the project area did not exist. • The Agency receives 100% of taxes (not including certain pass-through agreements) received from increases in assessed valuation due to. new construction, resale of existing property and annual increases allowed under Article 13-A of the California Constitution. The increment is used to repay the debt of the Agency (see Note 7). 5. CAPITAL ASSETS The changes in capital assets (land) during the year were (in thousands) Balance, October 1, 2007 $ 17,153 Additions/Retirements - Balance, September 30, 2008 $ 17,153 6. INTERFUND TRANSACTIONS a. Due To/From Other Funds The amounts at Year-end were (in thousands): Due from Other Due to Other Funds Funds Huntington Beach Project Area#1 Capital Projects $ 1,205 $ - Southeast Coastal Project Area Capital Projects - 249 Huntington Beach Project Area#1 Debt Service - 956 Total Due to/from Governmental Funds $ 1,205 $ 1,205 These outstanding balances result mainly from short-term borrowings to cover payments for goods and services. 25 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 6. INTERFUND TRANSACTIONS (CONTINUED) b. Advances to/from Other Funds The amounts at Year-end were (in thousands): Advances to Advances from Other Funds Other Funds Huntington Beach Project Area#1 Capital Projects $ 302 $ - Low-Income Housing Capital Projects 1,363 - Huntington Beach Project Area#1 Capital Projects - 1,363 Southeast Coastal Project Area Debt Service 302 Total Due to/from $ 1,665 $ 1,665 There is a $1,363,000 advance from the Low-Income Housing Fund to.the Huntington Beach Project Area #1 Capital Projects Fund for Educational Revenue Augmentation Fund payments and Main Pier property acquisitions. There are no scheduled repayments for this advance. There is a $302,000 advance from the Huntington Beach Project Area #1 Capital Projects Fund to the Southeast Coastal Project Area Debt Service Fund for the Southeast Coastal Project Area. There are no scheduled repayments for this, advance. c. Transfers In/Out The amounts at Year-end were (in thousands): Transfers Out Huntington out east Beach Project Coastal Project . Area#1 Debt Area Debt Transfers In Service Service Total Low Income Housing Fund 3,365 40 3,405 Total Transfers Out $ 3,365. $ 40. $ 3,405 The following is a summary of the significant transfers: • $3,365,000 and $40,000 was transferred from the Huntington Beach. Project Area #1 Debt Service Fund and the Southeast Coastal Project Area Debt Service Fund to the Low Income Housing Fund to meet the.20% tax increment set-aside requirement. 26 Redevelopment Agency of the City of Huntington Beach " Notes to Financial Statements For the Year Ended September 30, 2008 7. LONG-TERM DEBT The changes in Agency long-term debt during the year were (in thousands): Redevelopment Agency of the City of Huntington Beach Schedule of Long Term Debt As of September 30, 2008 Balance Balance Amount Due October 1, September 30, within One 2007 Additions Retirements 2008 Year DEBT TO CITY OF HUNTINGTON BEACH: Advances from General Fund $ 11,209 $ 512 $ (839) $ 10,882 $ Advances from Sewer Fund 239 11 - 250 Advances from Drainage Fund 576 26 602 - Advances from Water Fund 3,566 163 3,729 Deferred Development Fees: Park Acquisition and Development Fund 351 17 - 368 Sewer Fund 149 7 - 156 - Drainage Fund 158 7 - 165 - Deferred Payment on Land Purchases from City: General Fund 64,382 2,608 (3,161) 63,829 Park Acquisition and Development Fund 4,739 216 - 4,955 - Total Debt-City of Huntington Beach 85,369 3,567 (4,000) 84,936 - OTHER DEBT Help Loan 500 - - 500 Mayer Disposition and Development Agreement 7,101 455 (746) 6,810 1999 Refunding Tax Allocation Bonds 7,790 - (380) 7,410 390 2002 Tax Allocation Refunding Bonds 17,095 - (845) 16,250 870 Bella Terra Parking 14,855 1,030 (1,353) 14,532 - Section 108 Loan 4,480 - (255) 4,225 270 Employee Compensated Absences 37 62 - 99 Total Other Debt 51,858 1,547 (3,579) 49,826 1,530 Total Agency Debt $ 137,227 $ 5,114 $ (7,579) $ 134,762 . $ 1,530 27 i Redevelopment Agency of the City of Huntington Beach N Notes to Financial Statements For the Year Ended September 30, 2008 7. LONG-TERM DEBT (CONTINUED) a. Advances from General Fund Years debt incurred 1985 to 1996 Interest rate 4.26% Principal amount $10,801,000 Accrued interest $ 81,000 Purpose of debt Operating, administrative and capital expenditures Security for debt Operative Agreement with City Repayment terms None b. Advances from City's Sewer Fund Years debt incurred 1989 Interest rate 4.26% Principal amount $130,935 Accrued interest $119,065 Purpose of debt Sewer Construction Security for debt Operative Agreement with City Repayment terms None c. Advances from City's Drainage Fund Years debt incurred 1987 Interest rate 4.26% Principal amount $250,404 Accrued interest $351,596 Purpose of debt Drainage Construction Security for debt Operative Agreement with City Repayment terms None 28 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 7. LONG-TERM DEBT (CONTINUED) d. Advances from City's Water Fund Years debt incurred 1986 and 1987 Interest rate 4.26% Principal amount $1,138,299 Accrued interest $2,590,701 Purpose of debt Water Construction Security for debt Operative Agreement with City. Repayment terms None e. Deferred Development Fees Years debt incurred 1984 Interest rate 4.26% Principal amount $339,669 Accrued interest $349,331 Purpose of debt Developer Incentive Security for debt Operative Agreement with City Repayment terms None f. Deferred Payment on Land Purchases from City's General Fund Years debt incurred 1983 to 1992 Interest rate 4.26% (current fiscal ear Principal amount $32,834,083 Accrued interest $30,994,91.7 Purpose of debt Parcel consolidation and development Security for debt Operative Agreement with City Repayment terms None 29 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008. 7. LONG-TERM DEBT (CONTINUED) g. Deferred Payment on Land Purchases from City's Park Acquisition and Development Fund Years debt incurred 1984 Interest rate 4.26% Principal amount $1,713,187 Accrued interest $3,241,813 Purpose of debt Emerald Cove Land Security for debt Operative Agreement with City Repayment terms None. h. Notes Payable Years debt incurred 2003 Interest.rate 3.00% Principal amount $500,000 Purpose of debt Affordable housing Security for debt Note with developer Repayment terms Deferred for 10 years i. Mayer Disposition and Development Agreement In fiscal year 1996-97, the Agency entered into a disposition and development agreement with Robert Mayer Corporation (Corporation) concerning additional development adjacent to the Waterfront Hotel. Under the agreement, the Corporation would advance payments for the project costs with the Agency reimbursing, up to $16,750,000 of the costs. As of September 30, 2008, the Agency obligation under the agreement amounted to $6,810,000. Project-generated revenues as. available will repay these amounts over the time needed to fully amortize the advance. j. 1999 Tax Allocation Refunding Bonds Years debt incurred 1999 Interest rate 3.00% to 5.05% Original principal amount $10,835,000 Purpose of debt Prepay Agency's 1992 Loans to Public Financing Authority Security for debt Redevelopment Agency Tax Increment, excluding Low- Income Housing Amounts Repayment terms Principal,August 1s, Interest; February 1 st and August 1 st 30 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 3.0, 2008 7. LONG-TERM.DEBT (CONTINUED) Debt service requirements to maturity are as follows (in thousands): Year Ending September 30, Principal Interest Total 2009 390 350 740 2010 410 334 744 2011 430 317 747 2012 450 298 748 2013 465 278 743 2014-2018 2,705 1,044 3,749 2019-2023 2,200 402 2,602 2024 360 18 378 Total $ 7,410 $ 3,041 $ 10,451 k. 2002 Tax Allocation Refunding Bonds Year of Issuance 2002 Type of Debt Tax Allocation Refunding Bonds Original Principal Amount $20,900,000 Security Tax Increment Interest Rates 2.00% to 5.00% Interest Payment Dates Februa 1S and_August 1S Principal Payment Dates August 1s Purpose of Debt Prepay Agency's 1992 Loans to Public Financing Authority and fully decease 1992 Public Financing Authority bonds Debt service requirements to maturity are (in thousands): Year Ending September 30, Principal Interest Total 2009 870 742 1,612 2010 910 712 1,622 2011 945 678 1,623 2012 995 641 1,636 2013 1,040 601 1,641 2014-2018 5,905 2,283 8,188 2019-2023 4,805 875 5,680 2024 780 39 819 Total $ 16,250 $ 6,571 $ 22,821 31 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended.September 30, 2008 7. LONG-TERM DEBT (CONTINUED) I. Bella Terra Parking Structure In fiscal year 2005-06, the agency entered into an owner participation agreement with Bella Terra Associates, LLC (formerly Huntington Center Associates, LLC). Under the agreement, the Corporation would construct various public improvements, including a parking structure, which would then be deeded to the City. The Agency would reimburse $15,000,000 of the costs of the public improvements. As of September 30, 2008, the Agency obligation under the agreement amounted to $14,532,000. Project- generated revenues as.available will repay these amounts over the time needed to, fully amortize the advance. m. Section 108 Loan Year of Issuance 2000 -Type of Debt Loan from Federal Government Original Principal Amount $6,000,000 Security Loan Agreement with Federal Government Interest Rates 7.7% Interest Payment Dates February 1st and August 1st -Principal Payment Dates Au ust 1s Purpose of Debt Capital Improvements Debt service requirements to maturity are (in thousands): Year Ending September 30, Principal Interest Total 2009 270 327 597 2010 290 308 598 2011 310 286 596 2012 330 263 593 2013 350 238 588 2014-2018 2,155 740 2,895 2019 520 41 561 Total 4,225 2,203 6,428 n. Employee Compensated Balances There is no fixed repayment to pay the compensated absences liability totaling $99,000 at year-end. 32 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended.September 30, 2008 8. RETIREMENT PLAN INFORMATION The Agency is a component unit of the City. For retirement purposes, all Agency employees are considered to be employees of the City. No separate valuations are made for the Agency. All retirement information for the City as a whole is included in the City's Comprehensive Annual Financial Report. 9. AGENCY AGREEMENTS a. Pass-Through Agreements The Agency entered into various "pass-through" agreements with local governmental: agencies where a portion of tax increment is paid to the individual agencies. There was no amount payable at year-end. b. Pacific City On October 16, 2006, the Redevelopment Agency approved an Owner Participation Agreement with Makallon Atlanta Huntington Beach, LLC (also know as Makar) to develop a 31-acre site in the Main-Pier sub-area of the Huntington Beach Redevelopment Project (Pacific City). Makar will advance $5,500,000 to the Redevelopment Agency to fund the Agency's obligation for the Regional Urban Runoff Treatment System and the Pacific View Drive Extension. The advance will be repaid. over 20 years from tax increment generated from the site. As of September 30, 2008, no amount has been advanced to the City. c. CIM Group, LLC — Disposition and Development Agreement Implementation of disposition and development agreement (DDA) and Six Implementation Agreement (Agreements) between the CIM Group, LLC (CIM), and the Redevelopment Agency (Agency) were entered into from June 1999 to November 2008. The Agreements allowed for the development of a hotel, retail and restaurant, and a public parking structure. The project costs for infrastructure are to be paid initially by the developer with the Agency reimbursing the developer a maximum of. $7.9 million from Agency tax increment revenues. The Agency funded $950,000 (a reduction from the $1,500,000) for development of additional/surplus parking spaces. Subsequent to year-end the City. Council approved the Sixth Implementation Agreement, as detailed in note 12, included an additional one time payment of $2.4 million from the Agency to CIM for the development of the hotel and $950,000 for additional parking spaces beyond what was funded prior by the Agency. As of. September 30, 2008, no amount has been advanced to the City. 33 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008 9. AGENCY AGREEMENTS (CONTINUED) d. Southeast Coastal.Redevelopment Project On September 2, 2003, the Redevelopment Agency Approved a Cooperation Agreement Regarding Capital Improvements in the Southeast Coastal Redevelopment Project with the City. This agreement commits the Redevelopment. Agency to reimburse the City for a number of capital improvement projects to be undertaken as part of the Five Year Capital Improvement Program in the Southeast Redevelopment project area starting in FY 2003-04 as they are undertaken. 10. NOTES RECEIVABLE The Agency has made loans of $21,168,000 available to developers to construct or rehabilitate certain facilities under deferred loan agreements. These loans are deferred until a future event occurs, such as a sale of the property by the developer. A summary of Notes. Receivable as of September 30,.2008.is as follows' Descripton Amount Deferred Loans Receivable $ 21,099,000 Other Receivables $ 300,000 Total $ 21,399,000 11. PENDING LITIGATION There are legal actions pending against the Agency resulting from normal operations. The Agency's Counsel feels these actions will not have a significant impact on these financial statements. 12. OTHER The Agency's combined net assets for the year ended September 30, .2008, were a negative $(86,982,000). This is mainly because of how Redevelopment Agencies are required to operate under state law. Redevelopment Agencies incur debt in order to make expenditures, which result in increased public and private investment in a redevelopment area, which in turn generate property tax increment to repay the debt over time. Redevelopment. Agencies can only collect property tax increment to the extent it has debt on the books. 34 Redevelopment Agency of the City of Huntington Beach Notes to Financial Statements For the Year Ended September 30, 2008, 13. SUBSEQUENT EVENT On November 3, 2008, the Agency approved the Sixth Implementation Agreement, as referenced in the Disposition and Development section of the Agency Agreements Note 8c, to assist in the development of a hotel with a $2,4 million one-time payment from the Agency to be paid to CIM Group, LLC (CIM). The $7.9. million Ioan from CIM to the Agency was modified to come solely from Agency tax increment revenues: The Parking in Lieu Fund will repay $500,000 and the Agency will repay $450,000 to CIM for the additional parking spaces. 35 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH CALCULATION OF LOW/MODERATE INCOME HOUSING FUNDS - EXCESS SURPLUS October 1, 2007 (IN THOUSANDS) ENDING FUND BALANCE-OCTOBER 1,2007 $ 12,666 Less Unavailable Amounts: Encumbrances (437) Advances to Other Funds (2,094) AVAILABLE FUND BALANCE-OCTOBER 1,2006 $ 10,135 AVAILABLE LOW/MODERATE INCOME HOUSING FUNDS LIMITATION(GREATER OF$1,000,000 OR FOUR YEARS SET-ASIDE): Set-aside for fiscal years 2002-03 to 2005-06 2003-2004 1,909 2004-2005 2,301 2005-2006 2,780 2006-2007 3,062 TOTAL SET-ASIDE FOR LAST FOUR YEARS 10,052 COMPUTED EXCESS/SURPLUS-OCTOBER 1,2007 $ 83 36 DIEHL, EVANS & COMPANY, LLP CERTIFIED PUBLIC:ACCOUNTANTS&CONSULTANTS MICHAEL R.LLJDIN.CPA A PAInNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W.SPRAKER.LTA NITIN P.PATEL.CPA ROBERT 1,CALL.ANAN.LTA 5 CORPORATE PARR,SUITE 100 *PHII.IP H,HOL7'KAMP.CPA 'THOMAS M.PERL.OWSKI,CPA IRVINE,CALIFORNIA 92606-5165 •HARVL',v J.SCHROEDER,CPA (949)399-0600•FAX(949)399-0610 KENNETII R.AMES;CPA www.diehlevans.com 'WILLIAM C.PE,hTZ,CPA (�(� February 25, 2009 'A PROFESSIONAL CORPORATION INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Redevelopment Agency of the City of Huntington Beach Huntington Beach, California We have audited the financial statements of the governmental activities and each major fiend for the Redevelopment Agency of the City of Huntington Beach (the Agency) as of and for the year ended September 30, 2008, which collectively comprise the Agency's basic financial statements and have issued our report thereon dated February 25,2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Repdrtin In planning and performing our audit, we considered the Agency's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control. deficiency, or combination of control deficiencies, that adversely affects the Agency's ability to initiate, authorize, record,process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Agency's financial statements that is more than inconsequential will not be prevented or detected by the Agency's internal control. - 37 - OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W.VALLEY PARKWAY,SUITE 330 CARLSBAD,CALIFORNIA 92008-2399 ESCONDIDO,CALIFORNIA 92025-2598 (760)729.2343•FAX(760)729.2234 (760)741.3141•FAX(760)741-9890 Internal Control Over Financial Reporting(Continued) A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Agency's internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies over material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements of the Agency are free of material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines For Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However,providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Redevelopment Agency of the City of Huntington Beach's Board of Directors and management and the State Controller's Office, Division of Accounting and Reporting and is not intended to be and should not be used by anyone other than these specific parties. -38 - RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development Department SUBJECT: Receive and File 2007-2008 State Controller Report COUNCIL MEETING DATE: April 20, 2009 RCA ATTACHMENTS � � $TATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not A plicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable Attached report must be approved by the Agency and sent to the .State by April 30, 2009. Completion of the report is contingent upon information contained in the City's final audit report, a copy of which is attached. REVIEWED RETURNED FORWARDEP Administrative Staff ) ( - ) Deputy City Administrator (Initial) ) City Administrator (Initial) ( )14 City Clerk ( ) vV EXPLANATION FOR RETURN OF ITEM: .(Below Space,For City Clerk's Use Only RCA Author: Terri King X8831