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Home My WebLink AboutResolution No. 06-R8RESOLUTION NO. 06-R8 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ADOPTING THE 2005-2009 FIVE-YEAR IMPLEMENTATION PLAN FOR THE AMENDED AND RESTATED CENTRAL BUSINESS DISTRICT AND WEST END MERGED PROJECT AND THE RANCH CENTER PROJECT WHEREAS, the Redevelopment Agency of the City of Azusa (the "Agency") is a duly constituted public body, corporate and politic, established pursuant to the Community Redevelopment Law of the State of California (Section 33000 et. sea. of the State Health and Safety Code); and WHEREAS, pursuant to Article 16.5, Section 33490 of the State Health and Safety Code, the Redevelopment Agency of the City of Azusa shall adopt after a public hearing, an implementation plan containing specific goals and objectives of the Agency, and the specific programs and expenditures proposed to be made during the next five years; and WHEREAS, the plan shall explain how the proposed goals and objectives, programs and expenditures will eliminate blight and implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 for each Project Area; and WHEREAS, the Implementation Plan details the Redevelopment Housing Strategy including the AB 315 Production Plan pursuant to Section 33413; and WHEREAS, the Board of Directors has held a public hearing and provided the opportunity for public input as so designated in Section 33490 of the State Health and Safety Code. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Redevelopment Agency of the City of Azusa take the following actions: SECTION 1. Adopt the 2005-2009 Five -Year Implementation Plan and AB 315 Production Plan. SECTION 2. The Agency Secretary shall certify the adoption of this resolution. PASSED AND APPROVED this 6`h day of March, 2006. Chairman BAC MY. DOCU NT W C \DOCUMENTS AND SETT GSW SAUSERMESKTGPIEMAKCH6, MA EF EDUM DO 0 1 HEREBY CERTIFY that the foregoing Resolution No. 06-118, was duly passed, approved, and adopted by the Board of Directors of the Redevelopment Agency of the City of Azusa, at a regular meeting of said Board held on the 6" day of March, 2006, by the following vote of the Board: AYES: BOARDMEMBERS: HARDISON, CARRRILLO, ROCHA, HANKS, CHAGNON NOES: BOARDMEMBERS: NONE ABSTAIN: BOARDMEMBERS: NONE ABSENT: BOARDMEMBERS: NONE Secretary v � BAC:UJI. DOCUMENT IN C:IDOCUMENfS AND SET GSWUSAUSERINESKTOME C86,20M6 EDDED.DOC Five -Year Implementation Plan 2005 —2009 Redevelopment Agency of the City of Azusa TABLE OF CONTENTS 1.0 INTRODUCTION.........................................................................................................1 1.1 Overview........................................................................................................................ 1 1.2 Background.................................................................................................................... 2 1.3 Implementation Plan Requirements...............................................................................2 1.3.1 AB 1290 Requirements................................................................................................3 1.3.2 AB 637 Requirements..................................................................................................4 1.3.3 Senate Bill 701............................................................................................................. 5 1.4 Purpose of the Implementation Plan.............................................................................. 5 1.5 Public Notice..................................................................................................................6 25 1.6 Definition of Blight.......................................................................................................... 6 1.7 Amendments to the Implementation Plan....................................................................... 7 2.0 REDEVELOPMENT AGENCY OF THE CITY OF AZUSA......................................... 8 2.1 History of the Agency..................................................................................................... 8 2.2 Agency Organization....................................................................................................10 3.3.5 Elimination of Blight within the West End Project Area..............................................28 2.3 Redevelopment Project Areas...................................................................................... 10 30 2.3.1 Central Business District Project................................................................................ 10 2.3.2 West End Project........................................................................................................10 3.4.2 Initial Conditions of Blight...........................................................................................30 2.3.3 Ranch Center Project................................................................................................. 11 2.4 Redevelopment Plan Limitations.................................................................................. 11 31 2.4.1 Redevelopment Plans Adopted Before January 1, 1994 ........................................... 11 31 2.4.2 Redevelopment Plans Adopted After 1994................................................................12 2.5 Housing Production Plan.............................................................................................. 14 2.6 Housing Fund Revenues. ............................................................................................. 14 3.0 FIVE-YEAR PLAN FOR THE ELIMINATION OF BLIGHT.......................................15 3.1 Background..................................................................................................................15 3.2 Central Business District Project.................................................................................. 15 3.2.1 Project Goals...............................................................................................................15 3.2.2 Initial Conditions of Blight...........................................................................................15 3.2.3 Completed Agency Activities.........................................................:............................17 3.2.4 Five -Year Objectives and Work Plan.........................................................................18 3.2.5 Elimination of Blight within the Central Business District Project Area ...................... 23 3.3 West End Project....................................................................................................... 25 3.3.1 Project Goals..............................................................................................................25 3.3.2 Initial Conditions of Blight...........................................................................................25 3.3.3 Completed Agency Activities......................................................................................26 3.3.4 Five -Year Objectives and Work Plan.........................................................................27 3.3.5 Elimination of Blight within the West End Project Area..............................................28 3.4 Ranch Center Project ........................................ :.......................................................... 30 3.4.1 Project Goal................................................................................................................30 3.4.2 Initial Conditions of Blight...........................................................................................30 3.4.3 Completed Agency Activities...................................................................................... 30 3.4.4 Five -Year Objectives and Work Plan......................................................................... 31 3.4.5 Elimination of Blight within the Ranch Center Project Area ....................................... 31 Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa 4.0 HOUSING PROGRAMS ...........................................................................................33 4.1 Background..........................................................................................:.......................33 Implementation Plan Review........................................................................................ 4.1.1 Twenty Percent Set -Aside Allocations....................................................:.................. 33 4.1.2 Policy Declaration Regarding Expenditure of Monies from the Housing Fund in .Financial Commitments Subject to Available Funds ..................................................... 50 Proportion to Unmet Need.......................................................................................... 33 4.1.3 Replacement Housing................................................................................................34 Prevailing Wage Issues................................................................................................ 4.1.4 Housing Production Requirement..............................................................................35 Redevelopment Plans/Conflicts.................................................................................... 4.1.5 Restrictions on the Use of Monies in the Housing Fund ............................................ 35 4.2 Agency Housing Activities/Use of Monies in the Housing Fund ................................... 36 4.2.1 Project History ............................................................................................................36 4.2.2 Housing Fund Deposits/Financial Plan Summary ......................................................38 4.2.3 Housing Units Sold Prior to Expiration of Affordability Covenants ............................. 38 4.3 Housing Production Plan.............................................................................................. 39 4.3.1 Housing Production Obligations (1978 — 2004)......................................................... 39 4.3.2 Housing Production Compliance (1978 —2004)........................................................40 4.3.3 Housing Production Obligations (2004-2009)............................................................41 4.3.4 Housing Production Compliance (2004-2009)...........................................................41 4.3.5 Total Units Produced and Required 1978 - 2009 .......................................................41 4.3.6 Housing Units Anticipated to Be Developed Within Project Areas (Ten Year Plan Tenn/Life of Redevelopment Plans)...........................................................................41 5.0 PLAN FOR AFFORDABLE HOUSING....................................................................48 6.0 IMPLEMENTATION PLAN ADMINISTRATION....................................................... 50 6.1 Implementation Plan Review........................................................................................ 50 6.2 Implementation Plan Amendment................................................................................ 50 6.3 .Financial Commitments Subject to Available Funds ..................................................... 50 6.4 Monitoring of Affordable Housing................................................................................. 51 6.5 Prevailing Wage Issues................................................................................................ 51 6.6 Redevelopment Plans/Conflicts.................................................................................... 52 7.0 FIVE-YEAR FINANCIAL PLAN.................................................:..............................53 7.1 Trends in Assessed Valuation...................................................................................... 53 7.2 Historical and Projected Tax Increment Revenues....................................................... 53 7.3 Outstanding Debt......................................................................................................... 53 7.4 Estimated Expenditures During the Five -Year Implementation Plan ............................ 54 7.4.1 Amended and Restated Central Business District and West End Merged ProjectArea................................................................................................................ 54 7.4.2 Ranch Center Project Area......................................................................................... 54 Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the. City of Azusa LIST OF TABLES Table 1 Project Area Adoption Dates.............................................................................................8 Table 2 Time Limitations for Redevelopment Plans Adopted Before 1994 ................................. 11 Table 3 Time Limitations for Redevelopment Plan Adopted After 1994 ...................................... 12 Table 4 Summary of Redevelopment Plan Limitations................................................................ 13 Table 5 Agency -Owned Properties In the Downtown Area ......................................................... 21 Table 6 Central Business District Project Area Matrix Linking Agency Programs to Conditions of Blight 2004 — 2009.................................................................................... 24 Table 7 West End Project Area Matrix Linking Agency Programs to Conditions of Blight2004 - 2009........................................................................................................... 29 Table 8 Ranch Center Project Area Matrix Linking Agency Programs to Conditions of Blight 2004 - 2009........................................................................................................... 32 Table 9 Community Need For Affordable Housing...................................................................... 36 Table 10 Housing Units Sold Prior to Expiration of Affordability Covenants .................................. 39 Table 11 Summary of Housing Production Obligations 1978 - 1994 .............................................42 Table 12 Summary of Housing Production Obligations 1994 - 2004 .............................................43 Table 13 Summary of Housing Production Compliance 1978 - 2004_ ......................................... 44 Table 14 Summary of Housing Production Obligations 2004 - 2009 .............................................45 Table 15 Summary of Housing Production Compliance 2004 - 2009 ...........................................46 Table 16 Total Units Produced and Required 1978 — 2009...........................................................47 Table 17 Housing Five -Year Financial Plan...................................................................................49 Table 18 Trends in Redevelopment Project Assessed Valuation .................................................. 55 Table 19 Historical and Projected Tax Increment Revenues All Project Areas 1999/00 — 2008/09.......................................................................................................... 56 Table 20 Outstanding Debt All Project Areas................................................................................ 57 Table 21 Amended and Restated Central Business District and West End Merged Project Area Non -Housing Funds Five -Year Financial Plan Projections ............................................. 58 Table 22 Ranch Center Project Area Non -Housing Funds Five -Year Financial Plan Projections.. 59 LIST OF FIGURES Figure 1 Map of Project Areas Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa ............................................................................. 9 1.0 INTRODUCTION 1.1 Overview Similar to many suburban cities, the City_ of Azusa (the "City" or "Azusa") initiated redevelopment efforts in the early 1970's. The primary purposes of the original redevelopment plan and subsequent amendments were to encourage the elimination of blight and the promotion of economic development efforts in the community. Consequently, the focus of the redevelopment efforts in Azusa was commercial and industrial areas within the City. Following Proposition 13 in California, redevelopment became very important because cities could no longer adjust the property tax rate to meet their financial needs. As a result, cities became very aggressive and competitive in their efforts to capture new revenue sources. Although many cities were attempting to convert dilapidated residential areas into viable commercial efforts, this approach was not employed in the City. In Azusa, redevelopment was utilized to fix incompatible land uses, renovate deteriorated buildings, alleviate conditions of high vacancy rates, improve public safety, and to encourage the productive use of properties that had been designated for commercial and industrial purposes. To address the problems that arose from the impact of redevelopment on low- and moderate -income housing in many communities, the State Legislature enacted a series of comprehensive revisions to the laws governing the use of redevelopment that require redevelopment agencies to undertake activities to assist in the production of low- and moderate -income housing. The purpose of these legal revisions is to mitigate the impacts of redevelopment on low- and moderate -income housing. The requirement to prepare implementation plans for redevelopment project areas was first adopted by California in 1993. The requirements have been amended numerous times to require the inclusion of additional information, particularly with respect to compliance with housing regulations within state law. The principal financing tool for the programs and goals addressed in the implementation plan is referred to as "tax increment." This financing tool allows redevelopment agencies to capture the increase in property tax revenues after the redevelopment plan is adopted. A redevelopment agency may borrow money or sell debt instruments to finance improvements in a redevelopment project area, and repay these debts by capturing taxes generated from the incremental increase in the tax base created by new development occurring after adoption of the redevelopment plan. Another element of the Redevelopment Law that makes it unique is the process by which a redevelopment agency is authorized to acquire interest in real property within a redevelopment project area for disposition for either public or private uses, providing that a nexus between the expenditure of the funds and the elimination of blight can be established. It is important to note that the redevelopment plan does not dictate future redevelopment or revitalization activities on a parcel -by -parcel basis. The redevelopment plan authorizes a variety of tools that the redevelopment agency mayemploy to revitalize a project area consistent with its General Plan. Additionally, actual redevelopment Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa activities often hinge on the plans and resources of the many tenants, property owners, or business owners in a project area, because Redevelopment Law affords these individuals certain rights and opportunities for project area participation. In accordance with the goals and objectives established for each project area or amendment area, the redevelopment agency may undertake a wide variety of activities aimed at stemming blight and economic decline. Such activities include, but are not limited to, acquiring land for resale to a redeveloper, providing financial assistance to existing owners or tenants for building repairs, constructing needed public facilities and improvements, and developing comprehensive economic development strategies that facilitate local investment and job creation. The redevelopment agency is also responsible for increasing, preserving, and improving the supply of housing units for very low, low- and moderate -income individuals and families. The Agency is required to set aside a portion of its property tax increment revenues for this purpose. The purpose of this Five -Year Implementation Plan.2005-2009 (the "Implementation Plan") is to meet the requirements within California law for the Redevelopment Agency of the City of Azusa (the "Agency") and its redevelopment project areas. 1.2 Background The Agency was established on May 7, 1973. Over the following decades, the Agency adopted three redevelopment plans. The first was the Azusa Central Business District Redevelopment Project (the "CBD Project"), which was adopted in 1978. This project was amended five times to add territory or revise terms of the original plan. Currently, the CBD Project consists of 322 acres encompassing the historic downtown and a variety of non-contiguous sites. The second redevelopment plan adopted by the Agency was the West End Redevelopment Project Area (the "West End Project"), which encompasses most of the City's industrial properties and consists of 1,100 acres on the westerly city limits. The third redevelopment plan, the Ranch Center Redevelopment Project (the "Ranch Center Project"), is a single property project area consisting of 5.8 acres at the southeast corner of Citrus Avenue and Alosta Boulevard. The Ranch Center Project was completed, but Agency assistance is still needed. In 1988, the CBD Project and the West End Project were merged to create the Merged Redevelopment Project Area (the "Merged Project") and subsequently amended in 2003 to add territory to the CBD Project and add eminent domain, redefine tax increment limits and combine indebtedness limits. 1.3 Implementation Plan Requirements The previous Five -Year Implementation Plan 2000-2004 for both the Merged Project and Ranch Center Project was effective from January 2000 until December 2004 and last amended in October 2003. Therefore, the Agency is now due to adopt a new Implementation Plan for the time period of January 2005 to December 2009. Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa This Implementation Plan has been prepared to address each of these redevelopment issues and is organized into six sections as follows: Section 1.0 Introduction Section 2.0 Redevelopment Agency of the City of Azusa Section 3.0 Five -Year Plan for the Elimination of Blight Section 4.0 Housing Programs Section 5.0 Plan for Affordable Housing Section 6.0 Implementation Plan Administration Section 7.0 Five -Year Financial Plan 1.3.1 AB 1290 Requirements AB 1290 added Section 33490 to the Health and Safety Code. This section requires agencies to produce implementation plans every five years, beginning in 1994. Section 33490 has been amended numerous times since its original adoption. In accordance with this section, the implementation plan must contain the following, if applicable to the specific redevelopment agency: Redevelopment Requirements • Goals and objectives for each project area. • Potential projects and programs for each project area. • Estimated expenditures. • Explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area. Housing Requirements • An explanation of how the goals, objectives, programs and expenditures will implement the Low and Moderate Housing Set -Aside Fund (the "Housing Fund") and housing production requirements set forth in the Redevelopment Law. This explanation must include a detailed annual implementation plan for each of the five years covered by.the Implementation Plan so that performance can be measured. • The amount of money available in the Housing Fund, the amount of money expected to be deposited thereto during the next five years as well as plans for using the annual deposits to the Housing Fund. The estimated number of units to be constructed, rehabilitated or price restricted in each of the five years. • An estimated number of units to be provided over the next five (5) and ten (10) years to meet the Agency's 15 percent inclusionary housing requirements, if applicable. Five -Year Implementation Plan 2005-2009 3 Redevelopment Agency of the City of Azusa • The number of qualifying very low-, low-, and moderate -income units that have been produced in the project area, and the number of additional units that will be required to meet the inclusionary housing requirements. • The number of units that will be developed by the Agency, if any, including the number of units that the Agency will make available for very low-, low- and moderate -income households. • If a planned public improvement or development project will result in destruction of existing affordable housing, identification of proposed locations for replacement housing by the Agency will be required. (Health and Safety Code Section 33413). • The Project Area Affordable Housing Production Plan (AB 315 plan, required by Health and Safety Code Section 33413(b)(4)). 3.2 AB 637 Requirements On January 1, 2002, a new law, AB 637 (Lowenthal), went into effect in California that created additional housing requirements for redevelopment agencies. This law was enacted to eliminate certain provisions in AB 1290 which had been in effect since 1993. AB 1290 contained a number of modifications to the inclusionary and production requirements contained in Section 33413(b) of the Health and Safety Code. In addition to eliminating the sunset for most of these provisions, AB 637 addressed many issues raised by the Western Center on Law and Poverty during the last several years. Under the Lowenthal Committee, the provisions of AB 637 were negotiated with the California Redevelopment Association (CRA), the Western Center on Law and Poverty, representatives of housing nonprofits and the HCD. In addition to the inclusionary provisions of AB 1290, six additional issues were addressed in AB 637. Those additional issues. are: • Targeting monies in the Housing Fund. (Section 33334.4) • Replacement housing. (Section 33413 (a)) 100 percent to be affordable instead of 75 percent. • Replacement housing. (Section 33411.5) Agency must keep a list of those displaced and who are given priority. • Housing Funds and Infrastructure. (Section 33334.2(e)(2)) Establishes regulations where monies from the Housing Fund may be used for onsite or offsite improvements. • Length of Covenants. (Section 33334.3) Covenants increased from 10 to 45 years in the case of owner -occupied units, and from 15 to 55 years in the case of rental projects. • Housing Fund monies are to be used only to the extent other reasonable means of private or commercial financing is not reasonably available (Section 33334.30). The additional issue of targeting monies in the Housing Fund is now required of the Agency. Pursuant to Section 33334.4, this provision requires that over the duration of a housing implementation plan (a ten-year period), the Agency is to spend monies from the Housing Fund for low- and very low-income persons in at least the proportion of the Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa total housing need that these income groups represent, as determined for the City pursuant to Section 65584 of the Government Code (Regional Housing Needs Assessment). In addition, the Agency is to spend monies during this same period of time for housing available to families with children in at least the same proportion as the population under age 65 as compared to the total population of the community, as reported in the most recent census. In accordance with Section 33490(a)(2)(A)(iii), the first time period to implement the requirements for targeting of monies in the Housing Fund is on or before December 31, 2014, and each ten years thereafter. If the Agency over the first five years of the Implementation Plan deposits in the Housing Fund less than two million dollars ($2,000,000), the Agency will have an extra five years to meet the requirement to target monies spent from the Housing Fund. 1.3.3 Senate Bill 701 SB 701 was Chaptered on September 22, 2002 and clarifies how AB 637 is to be enacted. Per SB 701, the Implementation Plan will be prepared taking into account AB 637 requirements. Subsequently, the City will have ten years or until December 31, 2014 to comply with the legal requirements outlined in AB 637. 1.4 Purpose of the Implementation Plan The first and foremost purpose of preparing this Implementation Plan is to fulfill the Agency's legal requirements. The requirement for implementation plans reflects a strong legislative concern that redevelopment activities should address the blight that justified adoption of the redevelopment plan. The Implementation Plan is one of several requirements which now direct that redevelopment activities be linked to elimination of blight. The Implementation Plan will identify the following: • The original project area goals and conditions of blight; • The projects previously undertaken to address the conditions of blight; • The goals/objectives for the project area during the next five years; and, • The specific action programs for each of the next five years. The Implementation Plan also includes a five-year cash flow projection, which identifies the proposed program expenditures and the anticipated sources of funding. In addition, the Implementation Plan also summarizes the Agency's housing programs for the next five years, identifying the Agency's prior housing accomplishments, its outstanding legal obligations to produce affordable units, the financial status of the Housing Fund, and a five-year housing strategy consistent with the City's Housing Element. Five -Year Implementation Plan 20052009 Redevelopment Agency of the City of Azusa 1.5 Public Notice The California Community Redevelopment Law (the "Redevelopment Law") requires that. the Agency adopt the Implementation Plan after holding a public hearing. Notice of the public hearing must be posted in at least four locations in each project area for a period of at least three weeks ending at least ten days prior to the hearing. In addition, notice of the public hearing must be published once a week for three consecutive weeks in a newspaper of general circulation. 1.6 Definition of Blight The presence of blight has always been the justification for the employment of redevelopment authority. Therefore, the definition of blight is a critical element of the initial analysis documenting the legal foundation for redevelopment. The legal definition of "blight" has changed several times over the years. Although -the Agency adopted its plans under prior blight definitions, the most recent definition is presented herein: Health and Safety Code Sections 33030 and 33031 define a blighted area as one that... ... is predominantly urbanized and in which the combination of statutorily enumerated conditions (identified below). is so prevalent and so substantial that it causes a reduction or lack of proper utilization of an area to the extent that it constitutes a serious physical and economic burden on the community which cannot be expected to be reversed by private and /or governmental action, without redevelopment. The enumerated conditions of physical and economic blight are as follows: Physical Blighf • Unsafe or unhealthy buildings that may result from code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. • Conditions preventing or substantially hindering the effective use or capacity of buildings or lots, which may be caused by substandard design, inadequate size given present market conditions, lack of parking, or similar factors. • Adjacent or nearby uses that are incompatible with each other and prevent economic development of the area. • The existence of subdivided lots in multiple ownership of irregular form and shape and inadequate size for proper development. Economic Blighf Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to properties containing hazardous waste and requiring redevelopment remediation authority. Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa • Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excess vacant lots in an area developed for urban use and served by utilities. • Lack of necessary commercial facilities normally found in neighborhoods (e.g. grocery stores, banks, and drug stores). • Residential overcrowding that has led to public safety and welfare problems. • An excess of bars, liquor stores, or other businesses catering exclusively to adults that has led to public safety and welfare problems. • A high crime rate constituting a serious threat to the public safety and welfare. The Implementation Plan does not reopen the issue of blight in the project areas to outside challenge, but it does require agencies to adopt goals, objectives and programs that are reasonably linked to the elimination of blight, as it is currently defined. 1.7 Amendments to the Implementation Plan The Implementation Plan is intended to be a flexible document, which defines the Agency's strategy for addressing the community's blighting conditions. The Implementation Plan does not identify every potential activity or expenditure of the Agency during the next five years. Circumstances and market conditions change, new projects are prioritized, and a variety of events cannot be foreseen at this point in time. The Implementation Plan sets forth a general strategy for the redevelopment of the project areas and identifies a variety of programs, which are consistent with this strategy. The Implementation Plan will be amended only if significant changes in direction are contemplated. The Agency is required to conduct a public review of the Implementation Plan sometime between the second and third year after its adoption. The Implementation Plan may be amended at that time to incorporate any new directions the Agency may wish to pursue in its mission to eliminate blight in the community. Five -Year Implementation Plan 20052009 Redevelopment Agency of the City of Azusa 2.0 REDEVELOPMENT AGENCY OF THE CITY OFAZUSA 2.1 History of the Agency The Agency was activated by the City Council on May 7, 1973 to reverse a trend of declining economic activity and physical decay in the City's commercial areas. However, the Agency remained inactive until the first redevelopment project. The CBD Project was formally adopted five years later in 1978. In 1983, the Agency adopted the West End Project, and in 1988, the Central Business District Project (the "CBD Project") a and the West End Project were combined to create the Merged Project Area. Subsequently, the Agency adopted the Ranch Center Project in 1989. Since 1978, the Agency has been the City's primary vehicle for ensuring the long-term economic vitality of the community. The Agency is involved in community revitalization at all levels, from relatively simple rehabilitation programs to complex strategies to preserve and enhance the community's job base and revenue by retaining existing businesses and attracting new businesses to Azusa. The Agency also undertakes activities to increase, preserve, and improve the number of housing units for very low-, low-, and moderate -income individuals and families. As required by Redevelopment Law, the Agency sets aside 20 percent of its tax increment revenues for this purpose. Today, the project areas consist of 1,427.8 acres of land. Table 1 presents the adoption date for each project area and amendment. Figure 1 illustrates the geographic location of the project areas. Table 1 Project Area Adoption Dates - -- - Project Area - Adoption Date -Purpose of-OrdinancelResolution Central Business District Redevelopment Project 09/18/78 New Project Area Adoption Central Business District, 1� Amendment 07/02/79 Add New Territory Central Business District, 2nd Amendment 07/20/81 Add New Territory West End Redevelopment Project 11/28/83 New Project Area Adoption Central Business District, 3'd Amendment 11/28/83 Add New Territory Central Business District, 0 Amendment 12117/84 Delete Territory Central Business District, 5' Amendment 12/17/84 Add Back Territory Central Business District and West End Redevelopment Projects, Merged (CBD Amendment #6, West End Amendment #1) 11/07188 Merged Central Business and West End Projects Ranch Center Redevelopment Project 07/17189 New Project Area Adoption Central Business District, V Amendment and West End Redevelopment Project, 3'd Amendment 10/06103 Add New Territory, Add Eminent Domain, Redefine tax increment limits, combined indebtedness limits, and replace separate redevelopment plans wit one Amended and Restated Plan. Source: Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa J! Y q� rI 11 11'I EmWU { I I i qi 1 �syn,re3 l �I II � iilt 111 ! .1 I —! ', r ..ahb nrxy 1 lA x� I "� ••� a fit''" ��j i, 777 „.; L ow•:bnnx ! li r e § j I ` KIN 0 41}A II ,C N, II I VY it • - IIS d — 1 it\JI �� N w 3 � Q LL F U w Iniy a 2.2 Agency Organization The Agency is a public body, corporate and politic, existing by virtue of the Redevelopment Law. However, the Agency is closely linked to the City by overlapping administration. The City Council of the City of Azusa (the "City Council") serves as the Board of Directors of the Agency with the Mayor as Chairperson. Daily administrative direction is provided by the City Manager who serves as the Agency's Executive Director. The Director. of Economic and Community Development along with support staff provide the daily administration and management of the various projects and programs. 2.3 Redevelopment Project Areas In 2003, the City Council approved the Amended and Restated Merged Project Area which is comprised of the CBD Project and the West End Project. In this section, the two project areas are discussed individually. 2.3.1 Central Business District Project The City adopted its first redevelopment plan, the CBD Project in September 1978 (Ordinance No. 2062), to revitalize the City's main commercial hub. For a variety of reasons, Azusa Avenue experienced severe physical, social, and economic decay commencing in the early 1960's. To restore the area's economic opportunities, the redevelopment plan, as well as its subsequent amendments, were targeted to achieve the following goals: • To develop convenient commercial facilities which offer residents a wide variety of goods and services. • To ensure an economically strong and balanced commercial sector of the community, promoting an accessible and attractive public meeting place. • To achieve strong investment and consumer support for the community's downtown commercial sector. • To revitalize the Central Business District. The CBD Project included the corridor between Azusa Avenue and San Gabriel Avenue from the 1-210 Foothill Freeway north to Ninth Street. It also included two non- contiguous parcels just south of the Foothill Freeway. Subsequent amendments to the redevelopment plan added several parcels, which were either blighted, necessary for effective redevelopment, or developable as affordable housing. 2.3.2 West End Project The City Council adopted the West End Project in November 1983 (Ordinance No. 2196). The intent of the West End Project was to reverse the process of decay and obsolescence in the City's industrial sector. This 1,100 -acre project area is located on the westerly city limits, and its primary goals are: • To encourage a strong and diversified industrial sector of the community while eliminating and preventing the spread of blight and deterioration. Five -Year Implementation Plan 2005-2009 10 Redevelopment Agency of the City of Azusa To promote the development of a modern, attractive industrial sector that is environmentally compatible, increases industrial efficiency, and stimulates new private investment. • To increase employment opportunities. • To increase sales taxes and other public revenues. 2.3.3 Ranch Center Project The Ranch Center Project was originally adopted in 1989 to revitalize a severely dilapidated shopping center at one of Azusa's major commercial intersections. The property was occupied by a 60,000 -square foot neighborhood shopping center that suffered from high vacancies and tenant turnovers. To redevelop it, the Agency entered into an Owner Participation Agreement with West Venture Development Company to demolish most of the existing improvements and construct an 85,000 square foot shopping center. The Agency relocated existing businesses and contributed $575,000 in land write-down assistance. The assistance was provided in the form of a sales tax note, which pledged future sales tax to the developer for the repayment of the debt. The note was paid off by the Agency at a discount in 1991 and the sales tax revenues were restored to the City's General Fund. In addition to the land write-down assistance, a $465,000 development loan was made to the developer. The Ranch Center Project is now complete 2.4 Redevelopment Plan Limitations 2.4.1 Redevelopment Plans Adopted Before January 1, 1994 All three redevelopment project areas were established prior to 1994. The time limitations shown in Table 2 apply to every redevelopment plan adopted on or before December 31, 1993 that contains the provision for tax increment financing. Table 2 Time Limitations for Redevelopment Plans Adopted Before 1994 'Limit Timeframe . Establishment of loans, advances and The later of 20 years after plan adoption or indebtedness January 1, 2004. Adoption SB211 eliminates the time limit to incur debt. Effectiveness of the Redevelopment Plan The later of 40 years after plan adoption or January 1, 2009. Time limit for repayment of indebtedness Not later than 10 years after the termination of the redevelopment plan activities. Source: Community Redevelopment Law Five-year Implementation Plan 2005-2009 11 Redevelopment Agency of the City of Azusa 2.4.2 Redevelopment Plans Adopted After 1994 A redevelopment plan adopted after January 1, 1994 containing the provisions set forth in Section 33670 (tax increment financing) must contain the time limitations as shown in Table 3. Table 3 Time Limitations for Redevelopment Plan Adopted After 1994 Limit Timeframe Establishment of loans, advances and Not to exceed 20 years from the adoption date indebtedness of the redevelopment plan. Effectiveness of the Redevelopment Not to exceed 30 years from the adoption date Plan of the redevelopment plan. Time limit for repayment of Not to exceed 45 years from the adoption date indebtedness. of the redevelopment plan. Source: Community Redevelopment Law The time limitation for establishment of loans, advances and indebtedness may be extended only by amendment of the redevelopment plan after the agency finds, based on substantial evidence, that (1) significant blight remains within the project area; and (2) this blight cannot be eliminated without the establishment of additional debt. To mediate the effects of the Educational Revenue Augmentation Fund (ERAF) required by the state from redevelopment agencies, Redevelopment Law was amended to extend the effectiveness of its redevelopment plans and its timeframe to receive tax increment revenues by one year. Table 4 presents a summary of limitations for each redevelopment plan and amendment. Five -Year Implementation Plan 2005-2009 12 Redevelopment Agency of the City of Azusa Table 4 Summary of Redevelopment Plan Limitations . Central - Central Central Eentral Central< Plan Limit -CBb Project BusinessBusiness District District Business BusinessBusiness - West End Ranch Center , District bistrict - District . - , Project Project. Amendment/ Amendment2, Amendment Amendment Amendment8 Date Plan 09/18/1978 07/02/1979 07/20/1981 11/28/1983 12/17/1984 10/06/2003 11/26/1983 07/17/89 Enabling ;. Ordinance - Ord. No: 2062 (Original) O - - Ord. No. 2077 .Ord: No. 21 - -Ord No. 2197 - Ordl No_2250 Ord: No. 03-06 .Ord No. 2196 " - Ord. No. 2402 (Original) Last Date to Incur Debt NA NA NA NA NA 11/06/2023. NA NA Last Date for Redevelopment 09/18/2019 07102/2020 - 07/20/2022 - 11/28/2024 12/17/2025 11/06/2034.. 11/28/2024 07/17/2030 Activities - - - Last Date to Repay Debt with 09/18/2029 07/02/2030 07/20/2032 11/28/2034 12/17/2035 11/06/2049 11/28/2034 07/17/2040 Tax Increment Tax Increment Limit $28,900,000 $28,900,000 - $28,900,000. .$28,900;000 - $28;900,000 - Unlimited $114;000,000 _ .Merged $30,000,000 Combined (Excluding CBD 93 Maximum $68,000,000 $68,000,000 Bonded Debt 10000 ,,000 10,000,000 10,000,000 10,000,000 10,000,000 Merged Merged $7,500,000 Combined combined Eminrm Domain Term Limit .11/06/2015 11/06/2015 11/06/2015 11/06/2015-: .. _ 11/06%2015 11/06/2015_ 11/06/2015 Expired Source: The Reaeve/opment Agency or the City of Azusa r,ve-rem ornpiemernaeon rian zuuo-zuua 13 Redevelopment Agency of the City of Azusa 2.6 Housing Production Plan The housing production or inclusive housing provisions of California Law Section 33413 apply to project areas adopted after January 1, 1976. Since all three redevelopment project areas in the City were established after 1976, they are all subject to the housing production requirement. 2.6 Housing Fund Revenues As required by Redevelopment Law, the Agency must comply with the obligation to deposit 20 percent of its gross tax increment revenue into the Housing Fund for increasing or improving the supply of low- and moderate -income housing in the community. In the next five years (2005-2009), the Agency anticipates assisting the construction of 50 low- and moderate -income housing units using $3.16 million Housing Fund monies. Table 16 on page 49 provides a five-year cash flow for the Housing Fund along with the programs anticipated to be implemented by the Agency during this Implementation Plan period. Five -Year Implementation Plan 2005-2009 14 Redevelopment Agency of the City of Azusa 3.0 FIVE-YEAR PLAN FOR THE ELIMINATION OF BLIGHT. 3.1 Background This section of the Implementation Plan focuses on the Agency's non -housing activities for the next five-year period and addresses: • The specific goals and objectives of the Agency. • The specific programs, including potential projects, proposed to be made during the next five years. • An explanation of how the goals, objectives, and projects will eliminate blight within the project areas. As previously mentioned, the City Council approved the Amended and Restated Merged Project Area which is comprised of the CBD Project and the West End Project. In this section, the two project areas are discussed individually. 3.2 Central Business District Project 3.2.1 Project Goals The focus of the redevelopment effort for the CBD Project was to alleviate blighting conditions of commercial properties. The primary goals of the CBD Project are: • To develop convenient commercial facilities which offer residents a wide variety of goods and services. • To ensure an economically strong and balanced commercial sector of the community, promoting an accessible and attractive public meeting place. • To achieve strong investment and consumer support for the community's downtown commercial sector. • Revitalize the CBD Project. 3.2.2 Initial Conditions of Blight This section describes the initial conditions of blight at the time of each plan adoption • Incompatible Land Uses — The project area was characterized by land use disharmony, the result of an indiscriminate mixing of residential, commercial, and industrial uses, and the complete lack of architectural continuity. Although some properties were well maintained, the area contained vacant and abandoned buildings, chain link or barbed wire fencing on major street frontages, inconsistent signage, and numerous vacant lots strewn with debris. Incompatible land uses were most evident in the corridor along Azusa Avenue from First Street to Sixth Street and along Foothill Boulevard west from Azusa Avenue. Five -Year Implementation Plan 2005-2009 15 Redevelopment Agency of the City of Azusa Substandard Design and Physical Obsolescence -- The older structures in the Central Business District lacked essential elements, such as convenient parking, modern plumbing and electrical systems, and efficient floor plans. Further, many did not comply with seismic integrity standards and required expensive upgrading. Building facades and the architectural integrity of historic structures had also badly deteriorated. These deficiencies made the area non-competitive with newer shopping centers and contributed to a dramatic decrease in building occupancies. Unsafe Buildings. Deterioration and Dilapidation — Because of the advancing age of many structures in the project area, and their increasing obsolescence, rents and property values declined. The quality of businesses interested in locating along Azusa Avenue and Foothill Boulevard declined. The area became a haven for bars, pawnshops, and other undesirable businesses. Lending institutions refused credit to area businesses and the area's economic environment could not support physical improvements to maintain competitive postures. Consequently, buildings were allowed to deteriorate beyond repair in many cases. Existence of Parcels of Inadequate Shape and Size for Modern Development The Central Business District consisted of numerous small parcels with frontages of fifty feet or less. This makes development of quality, integrated developments very difficult. There was no incentive for a private developer to assemble these smaller parcels into more suitable development properties because of the extraordinary cost of assembly and the uncertainty inherent in successfully assembling the parcels needed. Depreciated Values and Impaired Investments — Because of the foregoing physical and economic conditions, property values had stagnated and the area became non-competitive with modern shopping centers in Azusa and surrounding communities. Occupancy and lease rates fell, landlords grew desperate and rented space to lower and lower quality tenants. This downward spiraling tenant mix forced other businesses to relocate and discouraged quality business from replacing them. Values plummeted relative to other parts of the City. Several owners chose to demolish their structures rather than rehabilitate and re -rent because the potential income did not support the necessary reinvestment. Inadequate Public Improvements — Streets, curbs, gutters, storm drains, and utilities were inadequate to support existing development and contributed to the economic decay of the project area. The area lacked modern amenities essential to attracting customers, including attractive sidewalks, street trees, off- street parking, etc. Caltrans authority over Highway 39 was a major impediment to redesigning Azusa Avenue to serve the customer of the commercial district rather than the commuter. These conditions were determined to constitute a serious physical, social and economic burden on the community that could not be reversed or alleviated by the private sector acting alone. Five -Year Implementation Plan 2005-2009 16 Redevelopment Agency of the City of Azusa 3.2.3 Completed Agency Activities Proqram 1: Gain control of Highway 39 (Azusa Avenue) and initiate design. In February 1995, the City of Azusa was granted control over Highway 39, which is also known as Azusa Avenue and comprises one of the City's major downtown thoroughfares. After accepting control, the City initiated a streetscape program in 1997 to provide a more pedestrian -friendly commercial district in Downtown Azusa. In late 1998, the City implemented the enhancement program and constructed $1.9 million of public streetscape improvements. Improvements include street lighting, trash receptacles, benches, sidewalks, landscaping, and signage. The resulting visual improvement significantly enhanced the appearance of the Downtown area. Program 2: Prepare a concept plan for the CBD. In August 1996, the approved Downtown Concept Plan set the direction for the City's commercial development by providing market analysis, retail concepts, and a .strategic marketing/leasing plan. Since that time, the concept plan has been supplemented with the Downtown Azusa Vision and Positioning Strategy, which provide a more detailed program and consensus regarding leasing and development of the Downtown Azusa core area along Azusa Avenue from Fifth to Ninth Street. The goal of the Vision and Positioning Strategy is to attract a mix of tenants that encourages customer interplay, reinforce mutual sales and signal to visitors that Downtown Azusa is a unique experience. Program 3: Complete construction of the Centennial Square Project. In 1996, the 24,000 square foot Light and Water Department building was completed as one of the important components of Centennial Square. In June 1998, the City Council and Agency Board approved a Purchase and Sale Agreement with Lake Development Company for the sale of the property located at the northwest corner of Azusa Avenue and Foothill Boulevard. In the summer of 2000, the Lake Development Company completed the construction of a retail facility that currently houses a Sav-on drugstore, Quiznos Sub restaurant, and a pedestrian fountain court at the corner of Foothill Boulevard and Azusa Avenue. Program 4: Commence construction of the single-family residential Proiect at the northwest corner of San Gabriel Avenue and Foothill Boulevard. This project, known as Foothill Village, was completed in 1996 and is comprised of 33 single-family units. The 24 of the 33 units are reserved for moderate -income households to satisfy a portion of the Agency's housing production obligation. Program 5: Amendments to the Merged Redevelopment Plan (Central Business District and West End). In November 2003, the eighth and third amendments to the CBD Project and the West End Project Area, respectively, became effective. The amendment included the addition Five -Year Implementation Plan 2005-2009 17 Redevelopment Agency of the City of Azusa of 64 acres of property (commercial and residential), the reinstatement of eminent domain on specific properties, and an upgrade to some of the financial limits. Program 6: Eliminate the blighting uses at the Azusa Square Shopping Center. In October of 1996, the Agency and City acquired the former Azusa Square Shopping Center from Nathan Krems. In 1997, the Agency completed site demolition and soil remediation to prepare the site for future development. In October 1999, the City Council/Redevelopment Agency Board of Directors approved a Development and Disposition Agreement with Azusa Pacific University (APU) to implement a three-phase campus facility expansion. Since that time, APU has constructed two sports fields and a much-needed parking lot for their campus. Program 7: Complete construction of the Jack-in-the-Box restaurant. In 2001, the Agency Board approved the sale of 116 N. Azusa Avenue to, and a Disposition and Development Agreement with the developers of a new Jack-in-the-Box Restaurant. The vacant property, located one block north of the 1-210 freeway, was underutilized and contributed to the blighting conditions in the southern downtown area. The new restaurant, completed in 2002, beauties the area with its Spanish mission styling, and attracts commercial users to the area. 3.2.4 Five -Year Objectives and Work Plan Objective 1: Develop Long -Range Plans to Promote Compatible Land Uses, Establish Design Standards. and Construct Essential Public Improvements Program (a): Prepare Design Guidelines for Proiect. Status: (To be completed) — In 2004, the City completed an update to its General Plan and prepared a new development code to allow for more efficient, higher quality development of property throughout the City, including the downtown core. Although a specific plan was originally planned for downtown, City staff decided to provide specific regulations for the downtown area with design guidelines to be completed within the next two years. Program (b): Continue street tree planting program. Status: (On-going) — In 1995 and 1996, throughout Downtown and significant "gat( were also planted in 1998 along Azusa improvements program. In an effort to municipality, the Citywide tree program will the redevelopment project areas. Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa the Agency planted trees on various lots :way locations" (210 Freeway). New trees Avenue as part of the Downtown public carry on the beautification of the entire be continued at various locations throughout 18 Program (c): Gateway Strategy Status: (On-going) — This project involves the beautification of entry points to the City, and will be implemented as funding is made available. Beautification may involve various improvements including street trees (as mentioned above), landscaping, decorative structures, signage, etc. Program (d): Develop the Downtown North area with Transit -oriented, public and Private uses. Status: (In process) -- Develop that area in -the vicinity of the future Downtown Metro Gold Line light rail station and the Civic Center. Development objectives are to attract new private sector reinvestment, attract national and retail uses, develop transit -oriented district uses in the vicinity of the future Gold Line station, and construct a new library. Program (a): Provide loans and grants to rehabilitate commercial properties in the Downtown. Status: (On-going) — Since July 1996, the Agency has actively marketed the Commercial Rehabilitation Loan and Facade Grant Program. A number of loans and grants have been made to businesses and property owners to rehabilitate commercial properties in the City's Downtown. The resulting improvements to these properties have contributed significantly towards addressing the problem of physically obsolete and unsafe buildings. In addition, the improvements have signaled to property owners and potential investors that the City of Azusa continues to be a partner in the revitalization of downtown Azusa. The Commercial Rehabilitation Loan and Facade Grant Program is capitalized using funds from the Community Development Block Grant Program, the City of Azusa Community Redevelopment Agency, and the City of Azusa Department of Light and Water. Program (b): Create a pedestrian breezeway from Azusa Avenue to the parking court Status: (In process) — The Downtown Azusa Vision and Positioning Strategy reaffirms the creation of a passageway from the Heritage Court parking lot to Azusa Avenue. Section 108 funds are programmed to construct the passageway improvement. Construction of the. breezeway is anticipated to be completed in 2006. Five -Year Implementation Plan 2005-2009 19 Redevelopment Agency of the City of Azusa Objective 3: Develop Agency Owned Sites and Assemble Other Key Sites Program (a): Commence acquisition, conduct feasibility studies, and seek users and . developers for Downtown Block 36. Status: (In process) -- Block 36 is generally located at the southeast corner of Azusa Avenue and Foothill Avenue. The Agency has acquired several properties along this block including 632,634,636, and 640 N. Azusa Avenue. In the summer of 2004, the Agency purchased 638 N. Azusa Avenue, and is in the process of negotiating the acquisition of 100 E. Foothill Avenue (Wimpy's Pawnshop). Although the Agency made an attempt to negotiate a mixed-use project in 2002, the negotiations were unsuccessful. The Agency selected a developer in 2006. Program (b): Manage and market the Agency -owned properties. Status: (Underway) — Table 5 highlights the status of the Agency -owned properties in the downtown area. Program (c): Create a retail nexus at the northeast and northwest comer of Azusa Avenue and Arrow Highway. Status: (In process) — The northeast corner of Azusa Avenue and Arrow Highway was included in the redevelopment plan by CBD Amendment #8, and is in the process of being annexed to the City. Currently occupied by an unsafe former strip club building and a substandard furniture store, this key gateway site is designated for retail development. The northwest corner of Azusa Avenue and Arrow Highway is an underutilized site occupied by a blighted car wash, vacant land, a day care center, and an automotive repair facility. Staff is currently negotiating development of both of these key city gateway sites with reputable developers. Five -Year Implementation Plan 20052009 20 Redevelopment Agency of the City of Azusa Table 5 Agency -Owned Properties In the Downtown Area - Address .Improvements 'Marketing. . . The property was )eased to Enterprise Rent -a -Car 237 S. Azusa Avenue Parking Lot between 2000 and 2002. The Agency is now in the process of negotiating a sale with an adjacent property owner. 444 N. Azusa Avenue Vacant, landscaped Will develop a brochure and direct mail to developers and businesses. 61921 N. Azusa A Development and Disposition Agreement has been Avenue 7,000 sq. ft. building entered into with 621 Talley LLC for the development of a mixed-use project. (Sold 11105) 112 E. Foothill 3,000 sq. ft. building Will market the property as part of Block 36 and seek Boulevard proposals for development during 2005. 116 E. Foothill Vacant Will market the property as part of Block 36 and seek Boulevard proposals for development during 2005. 626-628 N. Azusa 10,500 sq. ft. former Will market the property as part of Block 36 and seek Avenue hotel building proposals for development during 2005. 630-632 N. Azusa 4000 sq. ft: building Will market the property as part of Block 36 and seek Avenue , proposals for development during 2005. 634 N. Azusa Avenue 800 sq. ft. building Will market the property as part of Block 36 and seek proposals for development during 2005. 636 N. Azusa Avenue 4,000 sq. ft. building - Will market the property as part of Block 36 and seek proposals for development during 2005. 638 N. Azusa Avenue 1,153 sq. ft. building Will market the property as part of Block 36 and seek proposals for development during 2005. 640 N. Azusa Avenue Vacant landscaped Will market the property as part of Block 36 and seek proposals for development during 2005. A DDAhasbeen entered into with 100 W. Foothill 100 W. Foothill Blvd. 9,500 sq. ft. building LLC for development of a retail center. Construction will be completed in 2006. (Sold 9/05) Source: Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 21 Redevelopment Agency of the City of Azusa Program (d): Redevelopment Block 37 Status: (In process) — This project involves the redevelopment of the southwest corner of Azusa Avenue and Foothill Boulevard. The plan is to convert the old furniture store into a commercial building that houses four retail stores. The Agency purchased the site in 2004, and negotiated a DDA with 100 W. Foothill LLC to redevelop the site. Block 37 additionally involves the redevelopment of 619/621 N. Azusa, and 613/614 N. Azusa, which lie on either side of the future Pedestrian Breezeway. New construction of dental offices and loft apartment housing at 613/615 N. Azusa is scheduled for completion by March 2006. Substantial rehabilitation of the historic Talley Building at 619/621 N. Azusa is scheduled for completion by August 2006, and will include a high-end restaurant and loft apartments. Program (e): Redevelopment of the Foothill Shopping Center. Status: (In process) — This project involves the redevelopment of the existing 23 acre Foothill Shopping Center located at the intersection of Alosta Avenue and Citrus Avenue. The shopping center will provide shopping opportunities and services for the residents of the City and the nearby student population of Azusa Pacific University and Citrus College. Staff is currently negotiating with a reputable commercial developer to redevelop the site into a retail/commercial and housing development. Staff has amended the existing redevelopment plan to include the shopping center site in order to allow for the redevelopment of the.site. Program (a): Create a Downtown Revitalization Program. Status: (In process) -- The Downtown Revitalization Program for Azusa is modeled after the four -prong approach used in the California Main Street Program. This approach focuses on organizational development, architectural and thematic design, promotion, and economic restructuring. The revitalization program will involve the on- going and continuing participation of the Downtown Azusa Business Association (DABA) in partnership with City staff, downtown merchants and the community at large. The DABA is composed of merchants who have a desire to revive the Downtown area as a commercial, cultural, and social destination. An ad hoc committee of key community stakeholders were instrumental in creating the Downtown Vision and Positioning Strategy. The strategy provides a program for the marketing and leasing of the Downtown area. Pave -Year Implementation Plan 2005-2009 22 Redevelopment Agency of the City of Azusa Program (b): Cooperate with and Provide marketing services to Property owners, real estate brokers, and business tenants to lease space in the Downtown. Status: (On-going) — The Agency continues to work with property owners, and real estate brokers to market vacant and underutilized properties to potential tenants and businesses. The Agency has developed a website for broker, agents, and property' owners to use in marketing their properties for sale or lease. Program (c): Provide technical assistance in the areas of management, advertising, accounting, Planning, merchandising, etc., to businesses. Status: (On-going) — The Agency has assembled a team of technical service providers and lenders to assist the businesses in the Central Business District. Technical service providers include Azusa Pacific University, Citrus College, the Chamber of Commerce, the Small Business Development Center, the U.S. Small Business Association, the Service Core of Retired Executives, and private financial institutions. The technical services team will be a component of the Downtown Revitalization Program with several disciplines of assistance available to business owners. Obiective 5: Construct Housing to Increase Commercial Demand Program (a): Identify parcels for infill housing development and housing rehabilitation oroiects. Status: (On-going) — As part of the Agency's pursuit for affordable housing, opportunities will be identified for infill housing development and housing rehabilitation projects. Potential opportunities may include Atlantis Gardens (Lime Street), South Azusa Avenue infill residential sites, and other sites to be determined along Azusa Avenue and Foothill Boulevard. Additionally, the Agency will continue to entertain joint projects with other non-profit organizations to provide single-family infill housing projects throughout the City, with an emphasis in the redevelopment project areas. 3.2.5 Elimination of Blight within the Central Business District Project Area The goals and objectives, programs and expenditures discussed throughout this Implementation Plan will eliminate blight within the CDB Project Area. As required by the Redevelopment Law, Table 6 provides a matrix linking the Agency's objectives and programs to be implemented over the next five years to the type of blight that will be eliminated within the CDB Project Area. Five -Year Implementation Plan 2005-2009 23 Redevelopment Agency of the City of Azusa Table 6 Central Business District Project Area Matrix Linking Agency Programs to Conditions of Blight 2004 —2009 PhsinEcnomicBldt mb siaUnsafe Physlca a enRhentia Excess of Adult High Objective/Programs BuildingsObsolescence Land Use IrregularLots Investments Decay Commercial Uses Overcrowding Businesses Crime Rate - Prepare Azusa Avenue Design Guidelines x x x x x x z z - Install Street Trees x x x - Implement Gateway Strategy x x x Develop Downtown North vnth Transit - _ oriented uses x z x x x x - Provide loans/grants - x z z x - Create Pedestrian Breezeway x x x x AssembleObjective 3: Develop Agency Sites & Sites x x z z - Develop Agency properties (Block 36) - Manage 8 market Agency -owned properties z x x Create retail nexus at corner of Azusa _ Avenue and Arrow Highway x z x x x - Redevelop the Foothill Shopping Center x x x x - Develop Block 37 z x z x - Create Downtown Revitalization Program x x x x x x x x z z - Marketing Services to Owners and Tenants x z - Provide technical assistance z z x, - Construct housing on infill parcels x x z x x x Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 24 Redevelopment Agency of the City of Azusa - 3.3 West End Project 3.3.1 Project Goals The West End Project includes the City's industrial sector. The primary goals of the project are: • To encourage a strong and diversified industrial sector of the community while eliminating and preventing the spread of blight and deterioration. • To promote the development of a modern, attractive industrial center that is environmentally compatible, increases industrial efficiency, and stimulates new private investment. • To increase employment opportunities. • To increase sales taxes and other public revenues. 3.3.2 Initial Conditions of Blight Incompatible Land Uses — At selected locations, residential and industrial uses are located immediately adjacent to each other with inadequate buffering between properties. Traffic, noise, and odor negatively impact the residential neighborhoods contributing to their physical and economic decay. Many businesses are likewise deterred from locating in areas adjacent to residences because of the environmental sensitivities. Substandard Design and Physical Obsolescence —Many industrial buildings lack adequate parking, landscaping, loading, emergency vehicle access, and storage areas. Lot coverage ratios are high with parking and storage areas spilling into the streets. The defective design elements tend to attract lower quality industrial users seeking inexpensive space. The areas along Irwindale Avenue and within the West End Specific Plan Area exhibit the highest degree of physical obsolescence and visual blight. Unsafe Structures, Deterioration and Dilapidation — Many of the commercial and industrial structures were constructed during the 1950's and have reached the end of their useful lives. Azusa had an inordinate number of metal structures, which had deteriorated and become detrimental to surrounding properties. These structures needed substantial renovation, including replacement of sheeting panels, painting, etc. The character of the industrial area was visibly downtrodden and higher order industrial users were discouraged from locating in Azusa because of the blighted appearance. Existence of Parcels of Inadequate Shape and Size for Modern Development — Substantial portions of the project are subdivided into small, irregularly shaped parcels unsuitable for modern industrial development. These parcels tended to attract low intensity industrial users willing to accept the irregular configurations. A side effect, however, is the over development of the lot and the failure to provide basic parking, loading, and storage facilities. Five -Year Implementation Plan 2005-2009 25 Redevelopment Agency of the City of Azusa Inadequate Public Improvements — Streets, curbs, gutters, storm drains, and utilities are inadequate to support existing development and contributed to the economic decay of the project area. Depreciated Values and Impaired Investments – Because of the foregoing physical and economic conditions, property values have stagnated and the area is non-competitive with modern industrial parks in surrounding communities. Azusa is viewed as the location of last resort for many heavy industrial users, which would not be accepted in other communities. Azusa attracted a number of low value, low employment storage yards because of the relatively lower real estate values. These conditions were determined to constitute a serious physical, social and economic burden on the community, which could not be reversed or alleviated by the private sector acting alone. One of the emerging issues of substantial importance to the West End Project is the presence of hazardous wastes on certain properties. The cost to remediate hazardous waste is extraordinary and heavy industrial areas are subject to considerable uncertainty in this regard. This could deter the purchase and development of properties because of the potential exposure to extraordinary remediation expenses. 3.3.3 Completed Agency Activities Program 1: Acquire Electric Materials Casting property. The Agency purchased the property located at 777 North Georgia Avenue in May 1995, and then entered into a Development and Disposition Agreement for the development of a 30,000 square foot manufacturing facility for Digital Printing Systems. The manufacturing facility was completed in December 1996 at a cost of $1.5 million. Program 2: Develop Palo Equipment property. In May 1997, the Agency entered into a Development and Disposition Agreement for the acquisition and development of the site at 1000 W. Foothill Boulevard. A 60,000 square foot warehousing, office, and retail showroom facility was constructed for the Virginia Hardwood Company. Approximately 40 people were employed as a result of this project. The Agency assisted with a $91,000 deferred payment loan. Program 3: Work with Costco to lease vacant building. Agency staff has worked closely with Price Enterprises to market the old Price Club facility site. The site now contains S&S Foods, Taco Bell, Costco Public Storage, and a Carl's Jr. Program 4: Work with Bert's Motorcycles to lease vacant property. The Agency worked very closely with Ron Seidner (property owner) to successfully lease the former Bert's Motorcycle buildings to Quality Material Handling in 1999. The Agency also assisted QMH by making a $30,000 loan to assist in the tenant improvements. Five -Year Implementation Plan 2005-2009 26 Redevelopment Agency of the City of Azusa Program 5: Work with Michael Powers Associates to locate and upgrade a vacant building. In December 1999, the Agency worked closely with Michael Powers, who purchased 918 W. Foothill Boulevard, to construct tenant improvements for his office furniture business. The Agency assisted him with a $19,650 deferred payment loan. 3.3.4 Five -Year Objectives and Work Plan The goal of the redevelopment effort is to upgrade the character and quality of the City's industrial parks and provide high paying manufacturing and service commercial jobs for area residents. The objectives are stated in terms of alleviating the blighting ,conditions previously enumerated, and are followed by the projects and programs employed to eliminate the blighting conditions. This helps establish the linkage between the programs and expenditures of the Agency with the legislative mandate to alleviate blight. Development Sites Program (a): Provide loans/grants for property improvements Status: (On -Going) — The Agency provides property improvement loans to businesses on a case- by- case basis. The purpose of the loans is for the expansion and retention of businesses in order to preserve and create jobs for the residents of the City. Business loans have been made to Bert's Motorcycle, Westek, Digital Printing Systems, Very Special Chocolates, Virginia Hardwoods, Michael Powers Associates, Quality Materials Handling. Forty jobs were retained and 147 new jobs were created as a result of the financial assistance. Program (b): Prepare a Use and Implementation Program for the Kincaid site. Status: (In process) — In conjunction with the City of Irwindale, the Agency will help prepare a use and implementation program for the development of the Kincaid pit located adjacent to Costco. The work program and implementation schedule will focus on retail/commercial uses and developer selection. The work program is expected to be completed by the end of 2005. Developer selection is anticipated in 2006. Five -Year Implementation Plan 2005-2009 27 Redevelopment Agency of the City of Azusa Businesses Program (a): Establish and maintain regular visits to Azusa businesses. Status: (On-going) -- The Agency periodically meets with businesses on an on-going basis, and provides technical assistance, distributes informational materials, and provides consultation on financial resources and incentives for industrial and other businesses. As needed the Agency is accompanied by members of the Chamber of Commerce. Azusa Unified School District and/or Downtown Business Association. Program (b): Streamline approval process. Status: (On-going) — In 1996 and 1997 brochures were produced to communicate, in simple terms, the various permitting processes for businesses. The brochures were updated in 2004 and are currently distributed at the public planning counter. An updated website and new informational material regarding the City's approval process will be available during 2006. Objective 3: Construct Essential Public Facilities to Promote Reuse and Redevelopment Program: (a): Construct public improvements to upgrade the industrial areas. Status: (On-going) — Budget constraints have limited the Agency's ability to upgrade public improvements except on a case-by-case basis with individual developers. Program (b): Plant trees in key locations. Status: (On-going) -- In an effort to carry on the beautification of the entire municipality, the City-wide tree program will be continued at various locations throughout the project area. Amongst the areas that have been landscaped and with trees is the Vernon Street, Foothill Freeway off -ramp. 3.3.5 Elimination of Blight within the West End Project Area The goals and objectives, programs and expenditures discussed throughout this Implementation Plan will eliminate blight within the West End Project Area. As required by the Redevelopment Law, Table 7 provides a matrix linking the Agency's objectives and programs to be implemented over the next five years to the type of blight that will be eliminated within the West End Project Area. Five -Year Implementation Plan 2005-2009 28 Redevelopment Agency of the City of Azusa Table 7 West End Project Area Matrix Linking Agency Programs to Conditions of Blight 2004-2009 Phys! Bli ht Economic Bli ht Unsafe Physical Incompatib a Impaired Economic Lack of Essential Residential Excess of Adult High Objective/Programs Buildings Obsolescence Land Use Irregular Lots Investments Decay Commercial Uses Overcrowding Businesses Come Rate Objective Create More Efficient Development Sites - Provide loans/grants for propery improvements x x x x x x x - Kincaid Use & Implementation Plan x x x x x - Regular Visits to Azusa Businesses x x - Streamline approval process x x - Construct Public Improvements x x x - Install Trees at key locations x x x Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 29 Redevelopment Agency of the City of Azusa 3.4 Ranch Center Project 3.4.1 Project Goal The goal of the Ranch Center Project is to revitalize a severely dilapidated shopping center at one of Azusa's major commercial intersections. The property was occupied by a 60,000 -square foot neighborhood shopping center suffering from high vacancies and tenant turnovers. 3.4.2 Initial Conditions of Blight Substandard Desion and Physical Obsolescence — The building footprints were located on the center of the site with parking on both sides of the buildings. Because the rear lots were not visible from the street frontages, the parking areas were rarely used and the rear entrances to the buildings were under - maintained. Further, the project lacked modern amenities provided in newer shopping centers such as lighting, landscaping, easy access and internal circulation. The architectural style was confusing and dated. The project was physically and functionally obsolete. • Unsafe Structures. Deterioration and Dilapidation — The project was over thirty years old and suffered from under -maintenance of basic building systems. The property lacked trash enclosures, landscaping, a coherent sign program, screened HVAC systems, etc. Graffiti was also a constant problem. • Depreciated Values and Impaired Investments — The project had a vacancy rate of 40 percent and rents 30-40 percent below those prevailing in competing shopping centers. The trend was downward. No private reinvestment could restore the center's competitive posture. Inadequate Public Improvements — The public right-of-way surrounding the center lacked median islands, full directional traffic signals, adequate storm drains, and underground utilities. These conditions were deemed to constitute a serious physical, social and economic burden on the community, which could not be alleviated by the private sector acting alone. 3.4.3 Completed Agency Activities Program 1: Revitalize a shopping center at Citrus Avenue and Alosta Boulevard The property was occupied by a 60,000 square foot neighborhood shopping center suffering from high vacancies and tenant turnovers. To redevelop it, the Agency entered into an Owner Participation Agreement with West Venture Development Company to demolish most of the existing improvements and construct an 85,000 square foot shopping center. The Agency relocated existing businesses and contributed $575,000 in land write-down assistance. The assistance was provided in the form of a sales tax note, which pledged future sales tax to the developer for the repayment of the debt. The note was paid off by the Agency at a discount in 1991 and the sales tax revenues were restored to the City's General fund. In addition to the land write-down assistance, a $465,000 development loan was made to the developer. Five -Year Implementation Plan 20052009 30 Redevelopment Agency of the City of Azusa 3.4.4 Five -Year Objectives and Work Plan With the project now complete, future activity will focus on the provision of technical assistance to the businesses and property owner as part of the Agency's assistance programs for all redevelopment project areas. The following programs will be provided on an as -needed basis: • Cooperate with the shopping center owner to reposition the center as future market conditions dictate. • Facilitate financial assistance to the center as determined by the University District program and the updated General Plan. • Provide technical assistance to businesses in the center to increase sales and employment. • Include the shopping center in activities and programs planned for the University District area. 3.4.5 Elimination of Blight within the Ranch Center Project Area The goals and objectives, programs and expenditures discussed throughout this Implementation Plan will eliminate blight within the Ranch Center Project Area. As required by the Redevelopment Law, Table 8 provides a matrix linking the Agency's objectives and programs to be implemented over the next five years to the type of blight that will be eliminated within the Ranch Center Project Area. Five -Year Implementation Plan 2005-2009 31 Redevelopment Agency of the City of Azusa Table 8 Ranch Center Project Area Matrix Linking Agency Programs to Conditions of Blight 2004-2009 Physical Blight Economic Blight Unsafe Physical Incompatible Impaired Economic Lack of Essential Residential Excess of Adult High Objeclive/Pro rams Buildings Obsolescence Land Use Irregular Lots Investments Decay Commercial Uses Overcrowding Businesses Crime Rate - Provide technical assistance x x Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 32 Redevelopment Agency of the City of Azusa 4.0 HOUSING PROGRAMS 4.1 Background The Implementation Plan must describe the programs and projects the Agency will undertake to fulfill its various housing obligations under the Redevelopment Law. The Agency is charged with three major housing obligations, which are discussed below. 4.1.1 Twenty Percent Set -Aside Allocations The Agency must allocate 20 percent of the gross tax increments to the Housing Fund. and spend these funds solely on projects to increase, improve, and preserve the community's supply of low- and moderate -income housing. Units assisted with monies from the Housing Fund prior to January 1, 2002 must remain affordable for the longest feasible time, but not less than 10 years for owner -occupied units and 15 years for renter -occupied units. SB 211 was approved by the Legislature in 2001 requiring redevelopment agencies on or after January 1, 2002 to require units assisted with monies from the Housing Fund to remain affordable for the longest feasible time, but not less than 45 years for owner - occupied units and not less than 55 years for rental units. The Implementation Plan must include the following information regarding the Agency's Housing Fund: • The amount available in the Housing Fund and the estimated amounts to be deposited during each of the next five years; A housing program with estimates of the number of new, rehabilitated or price restricted units to be assisted during each of the five years and estimates of the expenditures of monies from the Housing Fund during each of the five years; and A description of how the housing program will implement the requirement for expenditures of monies in the Housing Fund for various groups within the City over a ten-year period with the first ten-year period ending on or before December 21, 2014. 4.1.2 Policy Declaration Regarding Expenditure of Monies from the Housing Fund in Proportion to Unmet Need A new provision of the Redevelopment law, which applies to implementation plans adopted on or after December 31, 2002, was approved by AB 637, which requires the Agency to expend the monies in the Housing Fund in proportion to the unmet need for housing in the City. Pursuant to Section 33334.4, this provision requires that over the duration of a housing implementation plan (a ten-year period), the Agency is to spend monies from the Housing Fund for low- and.very low-income persons in at least the proportion of the total housing need that these income groups represent, as determined for the City pursuant to Section 65584 of the Government Code (Regional Housing Needs Assessment). Five -Year Implementation Plan 2005-2009 33 Redevelopment Agency of the City of Azusa In accordance with Section 33490(a)(2)(A)(iii), the first time period to implement the requirements for targeting of monies in the Housing Fund is on or before December 31, 2014, and each ten years thereafter. Therefore, according to the Regional Housing Needs Assessment ("RHNA"), the housing for very low- and low-income households represents 47 percent of the City's total housing need. In addition, the Agency is to spend monies during this same period of time to assist families with children in at least the same proportion as the population under age 65 to the total population of the community as reported in the most recent census. Based on the 2000 U.S. Census, Azusa's proportion is as follows: Total Population (2000): 44,712 Population under 65 years: 41,627(93%) 4.1.3 Replacement Housing When residential units housing low- and moderate -income households are demolished or removed from the affordable housing stock as a result of a redevelopment project or program, the Agency must replace those units within four years after they are demolished or removed from the market. The replacement -housing obligation is triggered when units are destroyed or removed by a redevelopment project, which is subject to a written agreement with the agency or where financial assistance has been provided by the agency. Destroyed units, which were vacant but would reasonably be expected to be occupied by low- and moderate -income households if occupied, must be replaced. The units must be replaced within four years of the destruction or removal and may be located anywhere within the territorial jurisdiction of the City. When dwelling units are destroyed or removed after January 1, 2002, Section 33413(a) requires that all of the replacement units be available at affordable housing cost to the same household income level as the households that were displaced from the destroyed or removed units. Income limits for replacement units are equivalent to those for inclusionary units (refer to the following Housing Production Requirements section). Pursuant to Redevelopment Law §33413 (f)(1)(2), the Agency may replace destroyed or removed dwellings with fewer units if the replacement units have a greater or equal number of bedrooms and are affordable to households of the same income level as the destroyed or removed units. As of January 1, 2002, replacement housing must remain affordable for low- and moderate- households for the longest feasible time, but not less than 45 years for owner - occupied housing and 55 years for rental housing. The affordability controls on such units must be made enforceable by recorded covenant or restrictions. Five -Year Implementation Plan 2005-2009 34 Redevelopment Agency of the City of Azusa 4.1.4 Housing Production Requirement Prior to the time limit on the effectiveness of a redevelopment plan, at least 30 percent of the new or substantially rehabilitated housing developed by the Agency must be restricted for low- and moderate -income households, with .50 percent of the total restricted units reserved for very low-income households. Not less than 15 percent of the housing produced by public or private entities other than the Agency within applicable project areas must be restricted for low and moderate - income households, with 40 percent of the total restricted units reserved for very low- income households. However, housing production requirements do not apply to project areas adopted prior to 1976. Since the first project area was adopted in 1978, housing production requirements applies to all redevelopment projects. Prior to January 1, 2002, the units must be price -restricted for the longest feasible time but not less than the period of time the land use controls of the redevelopment plan remain in effect. For owner occupied housing, current law provides a limited exception to this covenant requirement by allowing a non -qualifying sale of an affordable production unit provided that the Agency replaces the unit within three years at the same income level as the original. After January 1, 2002, units must remain affordable for the longest feasible time, but not less than 55 years for rental units and 45 years for homeownership unit. Every redevelopment agency is required to prepare a ten-year plan to comply with the housing production obligations. The Agency addressed its ten-year obligations in the Five -Year Implementation Plan 1994-1999 adopted in 1994. This Implementation Plan will address the Agency's obligations for housing production for the next ten-year period. The Implementation Plan must include the following information regarding the Agency's production obligations: • The number of units of very low-, low- and moderate -income housing which have been developed within one or more project areas which meet the production requirements; • An estimate of the number of new, substantially rehabilitated, or price restricted residential units to be developed or purchased within one or more project areas, both over the life of the redevelopment plan and during the next ten years; • An estimate of the number of units of housing required to be developed within meet the production requirements; very low-, low- and moderate -income one or more project areas in order to • An estimate of the number of Agency developed residential units which will be developed during the next five years; and • An estimate of the number of Agency developed units for very low-, low- and moderate -income households during the next five years. 4.1.5 Restrictions on the Use of Monies in the Housing Fund As of January 1, 2002, there are additional restrictions on the use of monies from the Housing Fund. Redevelopment agencies are now required to spend Housing Fund monies in proportion to the community's need as defined in the Housing Element. Five -Year Implementation Plan 2005-2009 35 Redevelopment Agency of the City of Azusa Azusa's Housing Element, .adopted by the City Council and certified by the State Department of Housing and Community Development in 2001, concluded that there was a need for 183 very low-income units, 135 low-income units, and 156 moderate -income units. The following data presented in Table 9 indicates the percentage of monies from the Housing Fund to be spent with each income category over a 10 -year time frame. Notwithstanding this requirement, funds required to be expended within a higher income category can be utilized for a lower income category. Table 9 Community Need For Affordable Housing - Income Group Housing UnitsNeeded - 'PerceMof3otalAfroMsble '.Housing Very Low Income 163 39% Low Income - 135 28% Moderate Income 156 33% Total 474 100.0% Source: Azusa Housing Element and the Southern California Association Governments Regional Housing Needs Assessment, 1999. For example, the Agency must spend not less than 39 percent of Housing Funds on housing affordable to very low-income households. Additionally, current law states that the maximum proportion of funds that can be spent on senior citizen projects is equal to the percentage of the population above the age 65. The 2000 census found that seven percent of Azusa's population is above the age of 65. Under the new legislation (AB 637), effective January 1, 2002, only seven percent of the Housing Funds may be spent on affordable senior housing. Under this law, the Agency will have a ten-year period from the adoption this Implementation Plan to comply with these proportions. 4.2 Agency Housing Activities/Use of Monies in the Housing Fund 4.2.1 Project History This section examines the redevelopment activities initiated by the Agency intended to increase housing opportunities and eliminate blighted conditions. During the time period leading up to and through the 1995-1999 Redevelopment Implementation Plan period, the Agency undertook a variety of housing projects using the Housing Fund. These projects included the following: • Single -Family Rehabilitation --the Agency provided low interest loans, grants, and rebates to low- and moderate -income households for the rehabilitation of owner occupied residences. The program originated 654 loans/grants since 1980, resulting in over $3.8 million in property improvements. Five -Year Implementation Plan 2005-2009 36 Redevelopment Agency of the City of Azusa • Azusa Gardens—the Agency provided off-site improvement assistance in exchange for a reservation of 23 of the units for occupancy for very low-income households for a period of up to forty (40) years. This project, which is located at 601 East 8t° Street, satisfied a portion of the Agency's replacement housing obligations for the Jeep/Eagle and CBD Project activities. Pacific Glen Apartments --the Pacific Glen Apartments, now known as the Crestview Apartments, were constructed with multifamily bond funds issued by the City in 1985. Proceeds were used to construct a 320 -unit residential rental apartment complex, with 20 percent (64 units) set aside for very low-income (60% of median or less) residents. The complex is located at 801 East Alosta Avenue. Since the site is not within a project area, current law allows the Agency to credit the units on a 2:1 basis toward the project area production obligations. • Azusa Villas Senior Apartments --the Agency provided a deferred rehabilitation grant for this 146 -unit elderly project located at 200 East Gladstone Street, in exchange for a thirty-year reservation of 20 percent of the units for very low- income occupancy. This project has been credited toward the Agency's housing production obligation. In 2001, the California Communities, Affordable Housing Projects, authorized the participation of Azusa Villas in its program and issued $5,070,000 in tax-exempt bonds for acquisition purposes. In exchange for participation in the program, 20 percent of the units are restricted for very low-income seniors and 55 percent of the units are restricted for low-income seniors for a period of 30 years. • Bowden DDA/Ninth Street—the Agency utilized low/mod funds to underwrite construction of three single-family units at 900 North Azusa Avenue. The units are deed restricted for moderate -income households and partially count toward the Agency's housing production obligation. Since the site is not within a project area, current law allows the Agency to credit the units on a 2:1 basis toward the project area production obligations. • Foothill Village --the Agency acquired a 5.4 -acre site using monies from the Housing Fund for development of a 43 -unit single-family residential community. The Agency restricted 24 of the units for occupancy by moderate -income households. This project contributed 2 units toward replacement housing obligations and 22 units toward housing production obligations. (1995-1996) • Bowden DDA/Sixth Street --the Agency acquired a 21,000 square foot site for the development of four single-family homes for low- and moderate -income households. The units count toward the Agency's housing production obligation. (1995) • Balboa Site/REB DDA (Heritage Court) --the Agency acquired this 2.5 -acre site for construction of 20 single-family units. Twelve of the units are restricted for moderate -income households and count toward the Agency's .production obligation. Since the site is not within a project area, current law allows the Agency to credit the units on a 2:1 basis toward the project area production obligations. (1996) Five -Year Implementation Plan 2005-2009 37 Redevelopment Agency of the City of Azusa The Agency undertook the following housing project using Housing Fund monies during the 1999-2004 Redevelopment Implementation Plan period. • La Paloma Apartments (Iris Gardens)—the Agency assisted the project in receiving bond proceeds from the California Communities, Affordable Housing Projects in the amount of $5,150,000 in 1999. The apartment complex is located at 341 Rockvale Avenue and contains 120 units. All units are deed restricted for very low-income households. Since the site is not within a project area, current law allows the Agency to credit the units on a 2:1 basis toward the project area production obligations. 4.2.2 Housing Fund Deposits/Financial Plan Summary The Agency deposits approximately $1,287,000 per year into its Housing Fund from tax increment set -asides. As of June 30, 2004, the Housing Fund had a fund balance of <$216,940>. Section 5.0 illustrates the five-year cashflow for the debt service and capital project funds. of the Housing Fund. 4.2.3 Housing Units Sold Prior to Expiration of Affordability Covenants As stated in the Redevelopment Law, the Agency may permit sales of owner -occupied units prior to the expiration of the 45 -year period for affordability. The Agency is required, within three years from the date of the sale of a unit, to expend funds to make affordable an equal number of units at the same income level as unit sold. Table 10, located on the following page, lists the housing units sold prior to expiration of affordability covenants and includes the date each unit is required to be replaced and the date the unit is replaced if appropriate. Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa Table 10 Housing Units Sold Prior to Expiration of Affordability Covenants Housing Project Assessor Parcel Number Date of Payoff Income Level Date Unit Required to be Replaced Date Unit Replaced Bowden DDA/Sixth Street 8600-003-050 12/24/98 LowlMod 12/24/01 12124101' Foothill Village 8608-022-087 10120/99 LowlMod 10/20102 10120102• Foothill Village 8608-022-054 03/08101 LowlMod 03108104 03/08/04' Bowden DDA/Ninth Street 8608-019-049 08/29/02 Low/Mod 08/29/05 08/29105' Heritage Court 8612-001-091 07/23/03 LowlMod 07/23/06 Foothill Village 8608-022-096 08/08103 Low/Mod 08/08106 Heritage Court 8612-001-088 401103 Low(Mod 09101106 Heritage Court 8612-001-098 09/08103 Low/Mod 09108106 Bowden DDA/Ninth Street 8608-019-048 09/11103 Low/Mod 09/11/06 Foothill Village 8606-022-053 09/18/03 Low/Mod 09118/06 Foothill Village 8608-022.094 02117104 Low/Mod 02107107 Foothill Village 8608-022-100 05/04104 LowlMod 05/04107 Foothill Village 8608-022,068 07/07/04 Low/Mod 07107107 Foothill Village 8608-022-044745 07108104 LowlMod 07108107 Foothill Village 8608-022-091 10/19/04 Low/Mod 10119/07 Heritage Court 8612-001-099 10104/04 Low/Mod 10/04/07 Foothill Village 8608-022-058 11122104 Low/Mod 11/22/07 Foothill Village - 8608-022.062 02/28105 Low/Mod 02128108 Foothill Village 8608-022-079 03104105 LowlMod 03/04108 Foothill Village 8608-022-064 03/30105 Low/Mod 03130108 Foothill Village 8606-022,057 08/29/05 Low/Mod 08129/08 Heritage Court 8612-011-084 08/30/05 Low/Mod 08130/08 'Reduced the number of housing production credits for each unit not replaced. Source: Redevelopment Agency of the City of Azusa 4.3 Housing Production Plan 4.3.1 Housing Production Obligations (1978-2004) As shown in Table 11, during the years 1978 through 1994 City records show that 1,076 dwelling units were constructed or substantially rehabilitated by private entities within the Project Areas. Twenty-three of the 1,076 units were produced by the Agency as replacement housing units. Consequently, the net construction/rehabilitation of residential dwellings for production obligation purposes is 1,053 units. The City does not have reliable records regarding the number of units rehabilitated or substantially rehabilitated for single-family units within the Project Areas during this period. For the purpose of calculating the production obligations, the Agency assumed that no single- Five-Yearlmplementation Plan 2005-2009 - 39 Redevelopment Agency of the City of Azusa family units were rehabilitated which satisfied the substantial rehabilitation test under the pre -AB 1290 or AB 1290 definitions. This would probably be reasonably accurate given the character of the Project Areas and the fair to good condition of the housing stock. The Agency's production obligation created by the construction of the 1,053 residential units during the 1978 — 1994 period is 158 total dwelling units, with 63 units and 95 units to be provided at affordable housing cost for very low-income households and low- and moderate -income households respectively. During the 1994 — 2004 period, City records show that 158 units were constructed by private entities within the Project Areas. Please see Table 12. Two of the 158 units were produced as replacement housing units. The net construction of residential dwellings for production obligation purposes is 156 units. The Agency's production obligation created by the construction of the 156 residential units is 23 total dwelling units, with 9 units and 14 units to be provided at affordable housing cost for very low- income households and low- and moderate -income households respectively. As shown in Table 12, the Agency's housing production obligations for the two reporting periods equals a total of 181 units with 72 units to be provided at affordable housing cost for very low-income households and 109 units for low- and moderate -income households. 4.3.2 Housing Production Compliance (1978-2004) In an effort to comply with its production obligations, the Agency produced 90 units of affordable housing between 1978 and 1994 as shown in Table 13. Of the 90 units, 87 are reserved for very low-income households and 3 units are reserved for low- and .moderate -income households. For production purposes, 32 of the 90 units are allowed to be credited towards the very low-income production obligation and one unit credited towards the low- and moderate -income obligation. This is because 23 units are restricted for replacement housing purposes, one unit was sold and not replaced and 67 of the credited units are outside the Project Areas and only count on a 2 for 1 basis. Table 13 continues to show that the Agency produced 269 units of affordable housing for the years 1994 — 2004. Of these units, 149 are restricted for very low-income households and 120 are restricted for low- and moderate -income households. For production purposes, 89 of the 269 units are credited toward the very low-income production obligation and 109 units credited toward the low- and moderate -income obligation. This is because 132 of the credited units are outside the Project Area and only count on a 2 for 1 basis. In addition, two units are reserved for replacement housing purpose and two units were sold and not replaced. Over the two time periods reflected in this subsection, the Agency produced 121 units restricted for very low-income households and 110 units restricted for low- to moderate - income households. When this effort by the Agency is compared to the number of units required to be produced under the Redevelopment Law, the Agency exceeds its production obligation by a total of 50 units, with 49 units and one unit to be provided at affordable housing cost for very low-income households and low- and moderate -income households respectively. Five -Year Implementation Plan 2005-2009 40 Redevelopment Agency of the City of Azusa 4.3.3 Housing Production Obligations (2004-2009) As illustrated in Table 14, during the 2004 — 2009 period the Agency anticipates developing 30 single-family units (Townhomes) within the Merged Project Area restricted for low- and moderate -income households. These units create a housing production obligation of 8 total dwelling units, with 4 units to be provided at affordable housing cost for very low-income households and 4 units for low- and moderate -income households. Table 14 further shows that the Agency has a total housing production obligation for the 1978 — 2009 period of time of 187 units with 75 units and 112 units to be provided at affordable housing cost for very low-income households and low- and moderate -income households respectively. 4.3.4 Housing Production Compliance (2004-2009) In addition to the 30 single-family units anticipated to be produced by the Agency within a Project Area, the Agency anticipates developing 20 assisted living senior housing units outside the Project Areas during the time frame of the 2004 — 2009 Implementation Plan. As illustrated in Table 15, all 50 units anticipated to be produced would be reserved as affordable housing. Thirty units will be restricted for low- and moderate -income households and 20 units are to be restricted for very low-income households. For production purposes, 10 of the 20 units are allowed to be credited towards the very low- income production obligation and 30 units credited towards the low- and moderate - income obligation. This is because 20 of the credited units are outside the Project Areas and only count on a 2 for 1 basis. 4.3.5 Total Units Produced and Required 1978 - 2009 At the end of this implementation Plan, the Agency will have exceeded its production obligation by a total of 82 affordable units with 55 units and 27 units to be provided at affordable housing cost for very low-income households and low- and moderate -income households respectively. Please see Table 16. 4.3.6 Housing Units Anticipated to Be Developed Within Project Areas (Ten Year Plan Term/Life of Redevelopment Plans) Based on the land use designations in the adopted General Plan and the Housing Element the Agency expects that approximately 1,350 units will be developed or substantially rehabilitated from July 1, 2009 through the life of the redevelopment plans subject to the production obligation. This will require the production or substantial rehabilitation of 81 units for very low-income households and 121 units for low/mod income households. Five -Year Implementation Plan 2005-2009 41 Redevelopment Agency of the City of Azusa . Table 11 Summary of Housing Production Obligations 1978-1994 Project Name Project Area RentlOwn - Total Number of Units Produced New Construction Substantial Rehabilitation _ Total Units Number of Units Credited to Replacement Units 0) Net Number of Units Subject to Production(') 19A -1994 Period = Rainbow Lake Townhomes CBD #1 Own 56 0 56 0 56 Sierra Village Townhomes CBD#1 Own 278 0 278 0 278 Crystal Canyon/Canyon View CBD #3 Own 353 0 353 0 353 .Azusa Gardens CBD #2 Rental 112 0 112 23 89 Azusa Villas CBD #1 Rental 0 146 146 0 146 College Park Townhomes CBD #1 Own 90 0 90 0 90 152 West Ninth Street CBD Original Own 28 0 28 0 28 Miscellaneous Rental 13 0 13 0 13 Subtotal 930 146 1,076 23 1.053 Production Obii atio_ns 1919 6 79.94: ; Very low-income units 6% 63 Low- and Moderate -income units 9% 95 Total 158 (')Units counted towards replacement are excluded for the units produced. (27he net units are equal to the total units produces less the number of units credited towards replacement. Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 42 Redevelopment Agency of the City of Azusa Table 12 Summary of Housing Production Obligations 1994-2004 Project Name Project Area - RentlrOwn Total Number of Units Produced New Construction Substantial Rehabilitation Total Units Number of Units Credited to Replacement Unitstrt Net Number of Units Subject to Production(2) 0041204 Peiwiotl - Foothill Village CBD Original Own 43 0 43 2 41 Bowden/Sixth Street CBD Original Own 4 0 4 0 4 Parkside West End 111 0 111 0 111 Subtotal 158 0 158 2 156 Tdai Ptoffilctiod 66i1gatione 1976 ' 2004; 1978-1994 1994— 2004 Total Very low-income units 6% 63 9 72 Low- and Moderate -income units 9% 95 14 109 Total 158 23 181 -vii its cuuneu wwarus repiacemem are excmaea mr me units procucea. tziThe net units are equal to the total units produces less the number of units credited towards replacement. Source: The Redevelopment Agency of the City of Azusa - Five -Year Implementation Plan 2005-2009 - 43 Redevelopment Agency of the City of Azusa Table 13 Summary of Housing Production Compliance 1978 - 2004 Bowden Projecl/Sixth St. CBD Original Own 4 0 0 4 0 4 0 0 30 yrs. Azusa Villas Senior Apt. CBD #1 Rental 0 0 146 146 29 80 29 80 30 yrs. Heritage Court Outside Own 20 0 0 20 0 12 0 6 30 yrs. La Paloma (Iris Gardens) Outside Rental 120 0 0 120 120 0 60 0 30 yrs. Subtotal (1994. 2004) 187 0 146 333 149 120 89 109 Obligdtl6ff Units Produced - - - 89 109 Units Required 9 14 Credill(Deficit) 80 95 Total broduct10h COMPI aricei. Units Prdd'uced & Required Units Produced (1978-2004): 121 110 Units Required (1978 - 2004): 72 109 Creditf(Defici0 49 1 RI One unit sold. Not replaced. M Two units credited to replacement units. 0t Two units sold. Not replaced. l5i One unit sold. Not replaced. Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 44 Redevelopment Agency of the City of Azusa Total Number of Units Produced Restricted by Number of Units Credit Agreement to Production Project Name Project Area Rent/Own New Substantial Price Total Very low LowlMod Very low Low/Mod Duration of Construction Rehabilitation Restricted Units Income Income Income Income Affordability 1978 a 1994 Period (ActuaQ. Azusa Gardens CBD #2 Rental 112 0 0 112 23") 0 0 0 40 yrs. Pacific Glen (Crestview) Outside Rental 320 0 0 320 64 0 32 0 30 yrs. Bowden/NinthStreet Outside Own 3 0 0 3 0 3 0 1m 30 yrs. Bowden Projecl/Sixth St. CBD Original Own 4 0 0 4 0 4 0 0 30 yrs. Azusa Villas Senior Apt. CBD #1 Rental 0 0 146 146 29 80 29 80 30 yrs. Heritage Court Outside Own 20 0 0 20 0 12 0 6 30 yrs. La Paloma (Iris Gardens) Outside Rental 120 0 0 120 120 0 60 0 30 yrs. Subtotal (1994. 2004) 187 0 146 333 149 120 89 109 Obligdtl6ff Units Produced - - - 89 109 Units Required 9 14 Credill(Deficit) 80 95 Total broduct10h COMPI aricei. Units Prdd'uced & Required Units Produced (1978-2004): 121 110 Units Required (1978 - 2004): 72 109 Creditf(Defici0 49 1 RI One unit sold. Not replaced. M Two units credited to replacement units. 0t Two units sold. Not replaced. l5i One unit sold. Not replaced. Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 44 Redevelopment Agency of the City of Azusa Table 14 Summary of Housing Production Obligations 2004-2009 total 0irbillibildh Oliligationa 1978 2009: - Total Number of Units Produced 1978-1994 1994- 2004 Number of Units Credited to Net Number of Units Subject Project Name Project Area RentlOwn New Construction Substanti Total Units Replacement Units to Production Low- and Moderate -income units 95 Rehabilitatioal n 4 112 2004 -'2009 Peiiod 158 23 8 187 Townhomes (Single -Family) Merged Own 30 0 30 0 30 Subtotal (2004 — 2009) 30 0 30 0 30 Produotw 0bligallons_ 2004 _ bk Very low-income units 15% 4 J Low- and Moderate -income units 15% 4 Total 8 total 0irbillibildh Oliligationa 1978 2009: - 1978-1994 1994- 2004 2004 -2009 Total Very low-income units 63 9 4 75 Low- and Moderate -income units 95 14 4 112 Total 158 23 8 187 5oume: the Kedevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 45 Redevelopment Agency of the City of Azusa Table 15 Summary of Housing Production Compliance 2004-2009 Total Units Produced 1978= 2009: 1978-1994 1994 —2004 2004 —2009 Total Very low-income units 32 89 10 131 Low- and Moderate -income units - 1 109 30 140 Total Source: Redevelopment Agency of the City of Azusa 33 198 40 274 Five -Year Implementation Plan 2005-2009 46 Redevelopment Agency of the City of Azusa Total Number of Units Produced Restricted by Number of Units Credit Agreement to Production Project Name Project Area Rent/Own New Substantial Price Total Very low Low/Mod Very low LowlMod Duration of Construction Rehabilitation Restricted Units Income Income Income Income Affordability _r, 6 . 2004200 9,Psriod (Proj@ctetil. Senior Housing -Assisted Living Outside Rent 20 0 0 20 20 4 10 0 45 yrs. Single Family Merged on 30 0 0 30 30 - 0 30 55 yrs. Subtotal (2004.2009) 50 0 0 50 .20 30. 10 30 Units Produced 10 30 Units Required 4 4 CrediU(Deficil) 6 26 Total Units Produced 1978= 2009: 1978-1994 1994 —2004 2004 —2009 Total Very low-income units 32 89 10 131 Low- and Moderate -income units - 1 109 30 140 Total Source: Redevelopment Agency of the City of Azusa 33 198 40 274 Five -Year Implementation Plan 2005-2009 46 Redevelopment Agency of the City of Azusa Table 16 Total Units Produced and Required 1978— 2009 Total Uriits P1978- Produced &Required 2009:`:,,. Very Low Income Low/Mod Income Total Units Produced (1978 - 2004): 121 110 231 Units Produced (2005 - 2009): 10 30 40 Total Units Produced (1978 - 2009): 131 140 271 Units Required (1978 - 2004): 72 109 181 Units Required (2005 - 2009): 4 4 8 Total Units Required (1978-2009): 76 113 189 Credit/(Deficit) 55 27 82 Source: The Redevelopment Agency of the City of Azusa Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa 5.0 PLAN FOR AFFORDABLE HOUSING The programs contemplated for the next five years are summarized below. Table 17 identifies the program and establishes an annual housing plan. 1. Single -Family Housing Rehabilitation Program — The Agency will continue to implement its Single -Family Housing Rehabilitation Program as Housing Funds become available. The program provides low interest loans, grants, and rebates to low- and moderate -income households for the rehabilitation of owner occupied residences. 2. Senior Housing/Assisted Living — The Agency proposes to develop a 20 -unit Assisted Living complex for senior citizens. It is anticipated that the complex will be located outside the Project Areas and will be available for very low-income senior citizens. 3. Single -Family Affordable Townhomes — A single-family project of 30 affordable townhomes will be developed by the Agency during this implementation plan cycle in addition to the first year of the 2009-2014 cycle. The project will be available for low - to moderate -income families. Five -Year Implementation Plan 2005-2009 48 Redevelopment Agency of the City of Azusa Table 17 Housing Five -Year Financial Plan Revenues Over (Under) Expenses Ending Balance: of the City of Azusa Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa 15.705 4.770 1 Inside or Outside Proiect Area 2004105 2005106 2006107 2007108 2008109 2009110 Beginning Balance: 216,940 470,110 1,129,405 7,845 195,590 15,705 Low Mod Housing Tax Increment: N/A 1,287,000 1,312,740 1,338,990 1,365,770 1,393,090 1,420,950 Interest Income N/A 30,570 27,510 24,760 22,280 20,050 18,050 'Silent Second Loan Repayments N/A 115,000 75,000 50,000 50,000 50,000 50,000 Bond Debt Service Payments N/A (436,495) (407,050) (407,085) (407,610) (405,760) (407,950) (City Advance Debt Service Payments N/A (149,795) (149,795) (149,795) (149,795) (149,795) (149,795) �Administration (20%of Budget) N/A (156,930) (199,110) (193,430) (197,900) (202,470) (207,190) Project#1: Sgl. Family Hsg. Rehabilitation Inside and Outside (2,300) 0 (185,000) (185,000) (185,000) (185,000) 25 Units/Year; Improvement Value < 25% _ Project#2: Senior Housing/Assisted Living Outside 0 0 (1,600,000) (310,000) 0 0 20 Units Project #3: Sgi. Family Affordable Townhomes Inside 0 0 0 0 (700,000) (550,000) 30 Units Revenues Over (Under) Expenses Ending Balance: of the City of Azusa Five -Year Implementation Plan 2005-2009 Redevelopment Agency of the City of Azusa 15.705 4.770 1 6.0 IMPLEMENTATION PLAN ADMINISTRATION The Agency shall be responsible for administering this Implementation Plan and for monitoring redevelopment activities or programs undertaken pursuant to this Plan. 6.1 Implementation Plan Review At least once within this Implementation Plan's five-year term, the Agency shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the adopted redevelopment plans and the corresponding Implementation Plan and evaluating the progress of the redevelopment projects. The public hearing shall be held no earlier than two years and no later than three years after the date of adoption of this Implementation Plan. The Agency may choose to conduct a single public hearing applicable to all adopted project areas described in this Implementation Plan, or may conduct separate public hearings for each project area. This Implementation Plan covers the Agency's activities. in the redevelopment project areas from January 1, 2005 through December 31, 2009. Consistency of the information contained in the Implementation Plan and the Redevelopment Agencies Financial Transactions Report and the HCD Annual Report of Housing Activity of Community Redevelopment Agencies is important. Comparing the information reported each year to the State Controller's Office and to HCD to the information within the Implementation Plan will assist Agency Staff in monitoring the progress the Agency is making in achieving its goals and objectives for redevelopment and housing activities. This will make preparing the staff report for the mid-term review an efficient process. Notice of the public hearing to review the redevelopment plans and Implementation Plan shall be published pursuant Section 6063 of the Government Code and posted in at least four permanent places within each project area for a period of at least three weeks. Publication and posting of the notice shall be completed not less than 10 days prior to the date set for hearing. 6.2 Implementation Plan Amendment Pursuant to Redevelopment Law Section 33490, this Implementation Plan may from time to time be amended after holding a public hearing on the proposed amendment. 6.3 Financial Commitments Subject to Available Funds The Agency is authorized to utilize a wide variety of funding sources for implementing each Redevelopment Plan. Such funding sources include, but are not limited to financial assistance from the City, State of California, federal government, property tax increments, interest income, Agency bonds secured by tax increment or other revenues, or any other legally available revenue source. Although the sources of revenue utilized by the Agency are generally deemed to be reliable from year to year, such funds are subject to legislative, program, or policy changes that could reduce the amount or availability of the funding sources upon which the Agency relies. Five -Year Implementation Plan 2005-2009 50 Redevelopment Agency of the City of Azusa In addition, with regard to the Agency's primary revenue source, tax increment revenues, it must be noted that revenue flows are subject to diminution caused by events not controlled by the Agency, which reduce the taxable value of land or improvements in any of the project areas. Moreover, the formulas governing the amount or percentage of tax increment revenues payable to the Agency may be subject to legislative changes that directly or indirectly reduce the tax increment revenues available to the Agency. Due to the above-described uncertainties in Agency funding, the projects described herein and the funding amounts established to be available are subject to modification, changes in priority, replacement with another project, or cancellation by the Agency. 6.4 Monitoring of Affordable Housing Pursuant to Section 33418, the Agency is required to monitor, on an ongoing basis, any housing affordable to persons and families of low- or moderate -income developed or otherwise made available through any provision of the Redevelopment Law. As part of this monitoring, the Agency will require owners or managers of affordable housing units to submit an annual report to the Agency. The annual reports will include for each rental unit the rental rate and the income and family size of the occupants, and for each owner -occupied unit whether there was a change in ownership from the prior year and, if so, the income and family size of the new owners. The income information required by this section shall be supplied by the tenant in a certified statement on a form provided by the Agency. The Redevelopment Law states that the information on income and family size that is required to be reported by the owner or manager must be supplied by the tenant and shall be the only information on income or family size that the owner or manager will be required to submit in the annual report to the Agency. Section 33418(b) states that the information obtained by the Agency from owners and managers of affordable housing must be included in any reports required by law to be submitted to the HCD or the State Controller. In addition, Section 33418(c) finds that the Agency must adequately fund its monitoring activities as needed to insure compliance of applicable laws and agreements in relation to affordable units. For purposes of defraying the cost of complying with these monitoring requirements and with the HCD Report required to be filed with the State Controller's Report, the Agency can establish and impose fees upon owners of properties monitored pursuant to the Redevelopment Law. 6.5 Prevailing Wage Issues Since the Agency's approval of the last Implementation Plan, the California Legislature has amended Labor Code section 1720 et seq. to require payment of prevailing wages for private improvements which are financially assisted by the Agency or City whether for commercial, industrial, office, or housing uses. There is a very limited exception that applies to the construction or rehabilitation of affordable housing assisted by a redevelopment agency using its Housing Fund which is the only source of public funding for such development. In order to qualify for the exception there can be no other federal or state financial assistance or mortgage credit certificates or state or federal low income housing credits. Five -Year Implementation Plan 2005-2009 51 Redevelopment Agency of the City of Azusa 6.6 Redevelopment Plans/Conflicts If there is a conflict, which exists between this Implementation Plan and any one or all of, the respective Redevelopment Plans or any other City or Agency plan or policy, the applicable redevelopment plan shall control. Five -Year Implementation Plan 2005-2009 52 Redevelopment Agency of the City of Azusa 7.0 FIVE-YEAR FINANCIAL PLAN California Redevelopment Law grants various powers to redevelopment agencies as previously described in Implementation Plan. Among its authorized powers, an agency is permitted to enter into debt, issue revenue bonds, acquire and dispose of property, and accept financial or other assistance from any private or public source. The primary funding source, however, is tax increment revenues. Tax increment revenues are described as property taxes generated by increases in assessed land values, after a redevelopment plan has been adopted. The incremental tax increases are provided to the Agency for purposes of carrying out the programs and projects identified in this plan. The following tables include a look at the trends in Project Area assessed valuation; historical and projected tax increment revenues for all Project Areas and an estimate of Project Area debt. 7.1 Trends in Assessed Valuation As presented in Table 18, over the fiscal year period of FY 1999/00-2005/06, the combined assessed valuation of the total Project Areas increased at an average annual growth rate of 8.0 percent. The growth rate for this same period for each Project Area equaled 9.7 percent for the GBD Project, 7.5 percent for the West End project and 0.6 percent for the Ranch Center Project. In FY 2005-06 the assessed valuation of the total Project Area was approximately $753.6 million. Assuming an annual growth rate of two percent — minimum growth rate allowed for under the California Constitution — over the FY 2005-2008/09 period, the total assessed valuation is projected to increase to approximately $799.6 million. 7.2 Historical and Projected Tax Increment Revenues Table 19 illustrates tax increment revenues for all Project Areas for the last five -years as well as the future five-year period. The gross tax increment is broken out into pass- through payments and net tax increments. The net tax increment for all Project Areas is then allocated to the general accounts and the Housing Fund. The Agency experienced an annual growth rate of 29.7 percent over the last five years and it is anticipated that the annual growth rate for the next five years will be approximately 2.0 percent. Cumulative tax increment revenues cannot exceed $114.9 million for the Merged Project (exclusive of CBD #8 which has no limit), and $30 million for the Ranch Center Project. 7.3 Outstanding Debt As shown in Table 20, outstanding debt in the Amended and Restated Merged Project is expected to increase from approximately $45.0 million in FY 2003/04 to approximately $54.8 million in FY 2004/05. This equals a 21.6 percent increase in debt. However, it is anticipated that the Amended and Restated Merged Project will reduce its debt by FY 2008/09 to approximately $52.7 million or 3.9 percent. Table 20 shows that the Ranch Center Project will continue to receive City loans increasing each year over the next five years. Bonded indebtedness cannot exceed $68.0 million for the Merged Project and $7.5 million for the Ranch Center Project. 20052009 Implementation Plan 53 Redevelopment Agency of the City of Azusa 7.4 Estimated Expenditures During the Five -Year Implementation Plan 7.4.1 Amended and Restated Central Business District and West End Merged Project Area Table 21 illustrates the five-year financial plan for expenditure of the non -housing monies for the Merged Project Area. The Agency estimates spending approximately $15.9 million over the five-year period of the Implementation Plan for non -housing projects and programs. 7.4.2 Ranch Center Project Area As previously discussed, the Ranch Center Project Area consists of a new 85,000 square foot shopping center implemented in accordance with an Owner Participation Agreement with West Venture Development Company. As shown in Table 22, the Agency estimates spending approximately $68,675 over the five-year period of the Implementation Plan for technical assistance to the owner, tenants and to the activities and programs planned for the University District area. No other expenditures are anticipated over the five-year period of the Implementation Plan. 2005-2009 Implementation Plan 54 Redevelopment Agency of the City of Azusa Table 18 Trends in Redevelopment Project Assessed Valuation Source: The Redevelopment Agency of the City of Azusa 2005-2009 Implementation Plan - 55 Redevelopment Agency of the City of Azusa Amended and Restated Mn9ed Central Business Diatdct and West End Project Area Ranch Center Project Area Total Central Business District Project Area West End Prajeot Arte Total Annual Baa. Year Incremental Total Annual Be.. Year Incremental Total Annual Base Year Incremental Total Annual Base Year Incremental Fiscal Assessed Percent Assessed A ... aced Assessed Percent Assessed Assessed Assessed Percent Accessed Assessed Assessed Percent Assemad Assessed Year VaWnion Mcreaae Vaiuelion Valuation Valuation Increase Valuation Valuation Valuation Increase Valuation Valuation Valuation Increase Valuation Valuation 1999MO $135,027,622 - S17,934757 $111092,865 5326,874,006 - $133,049,617 $193,824,389 $12,305,969 - $4485.W $7,820,889 5474,207,597 - $155,4119,374 $155,469,374 2000N1 $137,253,012 1.6% $17,94)57 $119,318,255 $357,016,069 9.2% $133,99,647 $223,966,452 $11,684,883 -5.0% 54,485.00D $7,199,883 $505,953,9(14 67% $155,469,374 $155.469,374 2WI102 $153,708,9W 12.0% $17,934757 $135,854.147 $378,111,369 5.9% $133,049.617 $245,01752 $12,078,608 3.4% $4485,000 $7,59,688 8543,978,961 7.5% $155,489.374 $155,489,374 2002/03 $174,200,568 13.3% 117,934,757 $156,265,811 1423,853,104 12.1% $133.49817 $290,803407 $11.025,449 -2.1% $4,405,00 $7,340,449 $609,879,121 12.1% $155,469,374 $155.469,374 209N4 $184.434,568 5.9% $17,934757 $166,499,811 $70.512,272 11.0% $133,049,617 $337,462855 $12,432.%l 5.1% $4,485,000 $7,947,961 $667,379,801 9.4% $155,469,374 $155,469.374 204M5 $230,903,283 25.2% $47.95,184 $19.00,119 5495,365.288 5.3% $133,049,617 $362,315,849 $12.483,148 0.4% 54,485,00 $7,998,148 $736.751,697. 107% $185,429,781 $185,429,781 PmiMad 2005/% $235,521349 2.0% 347,895,164 $187,626,185 $505,272571 2.0% $133,49,617 $372,222,954 $12,732,811 2.0% 54485.00 $8,247,811 $753,526,731 2.0% $185,429,781 $185,429,781 208107 $240,231,776 2.0% $47,895,164 $192336,612 $515,378,023 2.0% $133,049,617 $382,328,408 $12,987,467 2.0% $4485.00 58,502487 $768,597,266 2.0% $185,429,781 $185,429781 207/08 $245,06,411 2.0% 547,895,164 $197,141,247 $525,685,583 2.0% $133,049,617 5392,635,966 $13,247,217 2.0 % 54,485,00 $8762217 $783,969,211 20% $105,429,781 $185.429701 208109 $249,937,139 2.0% 547,895,184 $202041,875 $536,199,295 20% $133,048.617 $403,149,678 $13,512,161 2.0% $4485,0 $9,027,161 $799,648,595 2.0% $185,429,781 $185.429,781 Avg Annual Growth 7.1% 5.7% 1.0% 6.0% 2000101.2004105: 9.7% 7.5% 0.6% 8.0% 200510& 2008/09: 2.0% 2.0% 2.0% 2.0% NOTE: EXCLUDES PUBLIC UTILITY ROLL ASSESSED VALUATIONS Trends in Redevelopment Project Assessed Valuation Source: The Redevelopment Agency of the City of Azusa 2005-2009 Implementation Plan - 55 Redevelopment Agency of the City of Azusa Table 19 Historical and Projected Tax Increment Revenues All Project Areas 1999/00 - 2008/09 Source: The Redevelopment Agency of the City of Azusa 2005-2009 Implementation Plan 56 Redevelopment Agency of the City of Azusa Amended & Restated Merged Project Ranch Center Project Allocated To Housing Set Aside Fiscal Gross Tax Pass -Through Net Tax Gross Tax Pass -Through Net Tax General Housing As a Percent of Year Increments Payments Increments Increments Payments Increments Accounts Set Aside Net Increments 1999/00 $3,557,811 $1,125,395 $2,432,416 $85,710 $47,369 $38,341 $1,742,053 $728,704 29.5% 2000/01 $4,032,663 $1,330,377 $2,702,286 $73,203 $40,985 $32,218 $1,913,331 $821,173 30.0% 2001/02, $4,635,488 $1,419,744 $3,215,744 $74,026 $41,891 $32,135 $2,305,976 $941,903 29.0% 2002/03 $5,641,060 $1,892,279 $3,748,781 $79,268 $45,063 $34,205 $2,638,920 $1,144,066 30.2% 2003/04 $6,191,593 $2,057,174 $4,134,419 $92,764 $54,670 $38,094 $2,915,642 $1,256,871 30.1% Projected 2004/05 $6,315,425 $2,098,317 $4,217,107 $94,619 $55,763 $38,856 $2,973,954 $1,282,009 30.1% 2005/06 $6,441,733 $2,140,284 $4,301,450 $96,512 $56,879 $39,633 $3,033,434 $1,307,649 30.1% 2006/07 $6,570,568 $2,183,090 $4,387,479 $98,442 $58,016 $40,426 $3,094,102 $1,333,802 30.1% 2007/08 $6,701,979 $2,226,751 $4,475,228 $100,411 $59,177 $41,234 $3,155,984 $1,360,478 30.1% 2008/09 $6,836,019 $2,271,286 $4,564,733 $102,419 $60,360 $42,059 $3,219,104 $1,387,688 30.1% Average Annual Growth Rale 1999/00 to 2003/04 14.9% 16.3% 14.2% 2.0% 3.6% -0:2% 13.7% 14.6% 2003/04 to 2008/09 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Source: The Redevelopment Agency of the City of Azusa 2005-2009 Implementation Plan 56 Redevelopment Agency of the City of Azusa Table 20 Outstanding Debt Fiscal Amended and Restated Merged Prolect Ranch Center Project Total Year Bonded City Sales Other Bonded City Sales Other End Debt Loans Tax Notes Debt Total Debt Loans Tax Notes Debt Total Debt Actual 1889/00 $17,395,000 $16,725,143 $7,183,664 $236,291 $41,540,098 $0 $2,601,816 $0 $0 $2,601,816 $44,141,914 2000/01 $17,045,000 $17,402,415 $7,329,774 $40,758 $41,817,947 $0 $2,779,549 $0 $0 $2,779,549 $44,597,496 2001/02 $16,670,000 $18,025,192 $7,764,502 $39,307 $42,499,001 $0 $2,966,440 $0 $0 $2,966,440 $45,465,441 2002/03 $16,285,000 $18,933,010 $7,894,600 $34,119 $43,146,729 $0 $3,170,537 $0 $0 $3,170,537 $46,317,265 2003/04 $17,080,000 $20,146,719 $7,791,760 $21,974 $45,040,453 $0 $3,391,436 $0 $0 $3,391,436 $48,431,889 Pro ected 2004/05 $26,315,000 $20,565,592 $7,886,170 $15,000 $54,781,762 $0 $3,628,109 $0 $0 $3,628,109 $58,409,871 2005/06 $25,305,000 $20,894,610 $7,989,720 $15,000 $54,204,330 $0 $3,882,584 $0 $0 $3,882,584 $58,086,914 2006/07 $24,280,000 $21,273,018 $8,103,300 $15,000 $53,671,318 $0 $4,156,215 $0 $0 $4,156,215 $57,827,533 2007/08 $23,235,000 $21,671,464 $8,227,880 $15,000 $53,149,344 $0 $4,450,462 $0 $0 $4,450,462 $57,599,806 2008109 $22,175,000 $22,107,390 $8,364,510 $15,000 $52,661,900 $0 $4,766,897 $o $0 $4,766,897 $57,428,797 Notes: (1) The projected debt amounts are estimates only. All Project Areas Source: Redevelopment Agency of the City of Azusa 2005-2009 Implementation Plan 57 Redevelopment Agency of the City of Azusa Table 21 Amended and Restated Central Business District and West End Merged Project Area Non -Housing Funds Five -Year Financial Plan Projections - 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 Beginning Balance -Undesignated: 5,426,223 12,393,944 8,535,434 4,366,916 1,123,968 162,287 Tax Increment (80%) 5,081,844 4,856,000 4,953,120 5,052,180 5,153,220 5,256,280 Interest Income 238,469 572,930 281,000 286,620 292,350 298,200 Property Sales 147,000 1,650,000 1,000,000 0 250,000 0 Bond Proceeds/Other Revenues _ 7,861,425 422,250 416,850 416,850 416,850 416,850 Pass -Through Payments/ERAF (3,336,054) (2,619,540) (2,671,930) (2,725,370) (2,779,880) (2,835,480) Bond Debt Service Payments (1,020,141) (1,149,750) (1,223,167) (1,224,401) (1,221,701) (1,219,880) City and Other Debt Service Payments (687,921) (2,300,750) (722,672) (738,193) (737,568) (731,246) Administration and Operating Expense (793,280) (764,100) (787,023) (810,634) (834,953) (860,001) Redevelopment Project Expense (@23,621) (4,525,550) (5,414,696) (3,500,000) (1,500,000) (450,000) Revenues Over (Under) Expenses 6,967,721 (3,858,510) (4,168,518 3,242,948 961,682 125,277 Ending Balance: 12.393.944 8,535,434 4,366,916 1.123.968 162.287 37.009 (1) Long-term City advance not (2) Net sales tax included in City and other Debt Service payments in 2004/2005; excluded in all other years as a wash. Source: Redevelopment Agency of the City of Azusa 2005-2009 Implementation Plan 58 Redevelopment Agency of the City of Azusa Table 22 Ranch Center Project Area Non -Housing Funds Five -Year Financial Plan Projections Beginning Balance -Undesignated: Tax Increment (80%) Interest Income Pass -Through Payments/ERAF City and Other Debt Service Payments Administration and Operating Expense Redevelopment Project Expense Revenues Over (Under) Expenses Ending Balance: Aaencv of the 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 66,183 65,984 67,300 68,650 70,020 71,420 1,545 1,100 1,120 1,140 1,160 1,180 (53,224) (58,010) (59,170) (60,350) (61,560) (62,790) (11,261) (8,074) (8,250) (8,440) (8,620) (8,810) (1,825) 0 0 0 0 0 0 (13,197) (13,460) (13,730) (14,004) (14,284) 2005-2009 Implementation Plan 59 Redevelopment Agency of the City of Azusa