HomeMy WebLinkAboutResolution No. 08-R290 0
RESOLUTION NO. 08-R29
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
AZUSA ADOPTING THE MID-TERM REVIEW OF THE FIVE-YEAR
IMPLEMENTATION PLAN (2005-2009) FOR THE MERGED CENTRAL
BUSINESS DISTRICT AND WEST END REDEVELOPMENT PROSECT AND
THE RANCH CENTER REDEVELOPMENT PROSECT
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) ("CRL"); and
WHEREAS, pursuant to Article 16.5, Section 33490 of the CRL, the Agency 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 implementation plan shall explain and detail 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 Agency adopted the 2005-2009 Five -Year Implementation Plan on
March 6, 2006; and
WHEREAS, pursuant to Article 16.5, Section 33490 of the CRL, the Redevelopment
Agency shall conduct a public hearing no earlier than two years and no later than three
years after the adoption of the implementation plan and hear testimony of all interested
parties for the purpose of reviewing the redevelopment plans and corresponding
implementation plan and evaluate the progress of the redevelopment projects; and
WHEREAS, the Agency Board has held a public hearing and provided the
opportunity for public input as so designated in Section 33490 of the CRL.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of
Azusa take the following actions:
SECTION 1. Adopt the Mid -Term Review of the Five -Year Implementation Plan
(2005-2009).
SECTION 2. Direct the Agency Secretary to certify the adoption of this resolution.
D� W QIDOCU, N S AND SETT GSV SAUSERI IDESKTOPVJGRE 16, 2""8E EDDERDOC
1
PASSED, APPROVED AND ADOPTED this 16th day of June, 2008, by the
Redevelopment Agency of the City of Azusa.
/�-P' 4 /� a'/�
seph . R'66a, Chairman
I HEREBY CERTIFY that the foregoing Resolution No. 08-1129 was duly adopted at a
regular meeting of said Redevelopment Agency on the 16`h day of June, 2008, by the
following vote of the Members:
AYES: BOARD MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: * SEE NOTE BELOW
ABSENT: BOARD MEMBERS: NONE
Vera Mendoza, Agency Secretary
* NOTE:
Councilmember Gonzales abstained from the following Projects:
1. Azusa Avenue Design Guidelines
2. Pedestrian Breezeway from the Heritage Court parking lot to Azusa Avenue
3. Development of Block 37
Councilmember Carrillo abstained the following Project:
1. Azusa Avenue Design Guidelines
DOCUMENTINC'1DOCUMEPTPS AND SET MSV SAOSERPDESKTOPU T16,2008Eh DEDDOC
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MIDTERM REVIEW
FIVE YEAR (2005 - 2009) IMPLEMENTATION PLAN FOR THE
CENTRAL BUSINESS DISTRICT, WEST END AND RANCH
CENTER REDEVELOPMENT PROJECT AREAS
BACKGROUND AND LEGISLATIVE REQUIREMENTS
On January 1, 1994, Assembly Bill 1290 (Stats. 1993, Chap. 942), known as the Community
Redevelopment Law Reform Act of 1993, went into effect. AB 1290 requires redevelopment
agencies to prepare and adopt an implementation plan every five years. As the result of AB
1290, the Redevelopment Agency of the City of Azusa (the "Agency") adopted a five-year
implementation plan for the Central Business District Project (the "CBD Project'), the West
End Project and the Ranch Center Project. A second implementation plan was adopted by
the Agency for FY 1999/00 to 2003/04. The current implementation plan was adopted in
March 2006 for FY 2004/05 to 2008/09 and is the subject of this midterm review. Section
33490 of the California Redevelopment Law ("CRL"), which implements AB 1290, outlines
the requirements of an implementation plan. These requirements are paraphrased here:
• Identify specific redevelopment goals and objectives for the next five years;
• Identify specific programs, projects and expenditures planned for the next five years;
• Explain how the goals, objectives, programs, and expenditures will eliminate blight;
and
• Specify information about the Agency's affordable housing program, including plans
for deposits to and expenditures from the twenty -percent tax increment set-aside
fund and means to achieve the Agency's Project Area housing production
obligations.
Additionally, Section 33490 of the CRL requires redevelopment agencies to hold a public
hearing in the third year of a five-year implementation period and hear testimony for the
purpose of reviewing the implementation plan and evaluating the progress of the
redevelopment project. This section of the CRL is presented here:
"...(c) Every agency, at least once within the five-year term of the plan, shall conduct
a public hearing and hear testimony of all interested parties for the purpose of
reviewing the redevelopment plan and the corresponding implementation plan for
each redevelopment project within the jurisdiction and evaluating the progress of the
redevelopment project. The hearing required by this subdivision shall take place no
earlier than two years and no later than three years after the adoption of the
implementation plan. An agency may hold one hearing for two or more project areas
if those project areas are included within the same implementation plan......
Since the current implementation plan for the CBD Project, the West End Project and Ranch
Center Project is in its third year of existence, it is now time to conduct this midterm review.
This report reviews redevelopment activities associated with the CBD Project, the West End
Project and Ranch Center Project since July 2004.
City of Azusa Five -Year Implementation Plan Midterm Review Page 1
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REDEVELOPMENT PROJECT AREAS
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 was adopted. The CBD Project was
formally adopted five years later in 1978. In 1983, the Agency adopted the West End
Project, and in 1988, the CBD Project and the West End Project were combined to create
the Merged Project Area (the "Merged Project"). Subsequently, the Agency adopted the
Ranch Center Project in 1989. The current five-year implementation plan adopted in 2006
("Implementation Plan") provided a set of goals and objectives for the Agency to effectively
address conditions of blight in the period of time from FY 2004105 to FY 2008/09.
The goals for the CBD Project are stated as follows:
1. To develop convenient commercial facilities, which offer residents a wide variety of
goods and services.
2. To ensure an economically strong and balanced commercial sector of the
community, promoting an accessible and attractive public meeting place.
3. To achieve strong investment and consumer support for the community's downtown
commercial sector.
4. To revitalize the Central Business District.
The Implementation Plan provides the following goals for the West End Project:
1. To encourage a strong and diversified industrial sector of the community while
eliminating and preventing the spread of blight and deterioration.
2. To promote the development of a modern, attractive industrial sector that is
environmentally compatible, increases industrial efficiency, and stimulates new
private investment.
3. To increase employment opportunities.
4. To increase sales taxes and other public revenues.
The Ranch Center Project was adopted 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. However, the Agency desires to maintain a competitive posture
with regard to the Ranch Center and will provide technical assistance as required.
City of Azusa Five -Year Implementation Plan Midterm Review Page 2
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Exhibit A
REDEVELOPMENT PROJECT AREAS
City of Azusa Five -Year Implementation Plan Midterm Review Page 3
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To implement the goals for CBD Project and the West End Project, the Implementation Plan
provided a specific list of projects/programs that the Agency and City intended to complete
or offer during the five-year period. Table 1 below lists these specific programs and Table 2
lists the annual funds the Agency expected to spend implementing them:
Table 1
PROJECTS, PROGRAMS AND EXPENDITURES
City of Azusa Five -Year Implementation Plan Midterm Review Page 4
PROJECTS AND PROGRAMS
CBD PROJECT
1.
Long Range Plans
• Prepare Azusa Avenue Design Guidelines
• Install street trees
• Implement Gateway Strategy
• Develop Downtown North with transit -oriented uses
2.
Improve Physically Obsolete Properties
• Provide loans/grants
• Create pedestrian breezeway
3.
Develop Agency Sites and Assemble Key Sites
• Develop Agency properties (Block 36)
• Manage & market Agency -owned properties
• Create retail nexus at corner of Azusa Avenue and Arrow Highway
• Redevelop the Foothill Shopping Center
• Develop Block 37
4.
Improve Business Opportunities
• Create Downtown Revitalization Program
• Provide marketing services to owners and tenants
• Provide technical assistance
5.
Construct Housing to Improve Commercial Demand
• Construct housing on infill parcels
WEST END PROJECT
1.
Improve the Physical Character of Structures & Create More Efficient Development Sites
• Provide loans/grants for property improvements
• Kincaid Pit Re -use & Implementation Plan
2.
Improve Business Climate by Retention/Attraction
• Regular visits to Azusa businesses
• Streamline approval process
3.
Construct Essential Public Facilities
• Construct public improvements
• Install trees at key location
City of Azusa Five -Year Implementation Plan Midterm Review Page 4
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Table t (Cont.)
PROJECTS, PROGRAMS AND EXPENDITURES
HOUSING PROGRAMS
1. Single -Family Housing Rehabilitation Program — Provide low interest loans, grants and rebates to
low- and moderate -income households for the rehabilitation of owner occupied residences.
2. Senior Housing/Assisted Living — Proposed development of a 20 -unit assisted living complex for
very low-income senior citizens.
3. Single -Family Affordable Townhomes—The development of 30 affordable townhomes during this
implementation plan cycle and the first year of the 2009-2014 cycle.
Source: Agency 2005-2009 Implementation Plan
Table 2
ANNUAL EXPENDITURES
Source.: Redevelopment Agency of the City of Azusa
lel Costs associated with debt service payments and administration and operating expenses are not included.
This report reviews redevelopment activities associated with the CBD Project, the West End
Project, the Ranch Center Project and Housing Programs since the adoption of the
Implementation Plan. More specifically, the report discusses the actions of the Agency with
respect to the various programs listed in Table 1. This report is intended to provide a
measure of the progress the Agency has made toward achieving its goals.
City of Azusa Five -Year Implementation Plan Midterm Review Page 5
2004105
2005/06
2006107
2007/08
2008109
CBD AND WEST END PROJECTS (MERGED PROJECT)
Redevelopment Project
Funds(i)
$523,621
$1,158,554
$24,759,526$6,715,600
$17,462,890
HOUSING PROGRAMS
Single -Family Housing
Rehabilitation Program (25 units
$ 2,300
0
$ 185,000
$ 185,000
$ 185,000
per year in years 2 through 5)
Senior Housing/Assisted Living
0
0
0
0
0
(20 units)
Single -Family Affordable
0
0
0
0
$ 700,000
Townhomes (30 units)
Down Payment Assistance
0
0
0
0
$ 1,000,000
Program
Source.: Redevelopment Agency of the City of Azusa
lel Costs associated with debt service payments and administration and operating expenses are not included.
This report reviews redevelopment activities associated with the CBD Project, the West End
Project, the Ranch Center Project and Housing Programs since the adoption of the
Implementation Plan. More specifically, the report discusses the actions of the Agency with
respect to the various programs listed in Table 1. This report is intended to provide a
measure of the progress the Agency has made toward achieving its goals.
City of Azusa Five -Year Implementation Plan Midterm Review Page 5
Redevelopment Administration
1. Economic and Community Development Director
During FY 2005/06, the new Economic and Community Development Director was hired to
oversee the Planning, Building, Community Improvement, Business License, CDBG and
Redevelopment Divisions.
2. Redevelopment Plan Amendments
On October 2, 2006, the City Council of the City of Azusa (the "City Council") adopted
Ordinance No. 06-011 approving the 11th amendment to the CBD Project and the 5th
amendment to the West End Project. These amendments provide the addition of eminent
domain authority to specific commercial sites in the existing Merged Project Area.
The City Council approved the 12`h amendment to the CBD Project and the 7th amendment
to the West End Project on February 5, 2007 by adopting Ordinance No. 07-04. The
purpose of these amendments was to extend the effectiveness date of each project by two
years per Senate Bill 1096 (ERAF).
On June 18, 2007, the City of adopted Ordinance No. 07-07 approving the 13th amendment
to the CBD Project and the 8th amendment to the West End Project and adopted Ordinance
No. 07-08 approving the 4th amendment to the Ranch Center Project for the purpose of
adopting an Eminent Domain Program and record a revised Statement of Proceeding in
accordance with Senate Bill 53 and Senate Bill 1809.
Finally, the Agency initiated the 2007 Plan Amendment of the Merged Project Area to add
15.1 acres of blighted properties, increase the tax increment cap and reinstate the Agency's
eminent domain authority on two commercial properties.
3. 2005 Tax Allocation Bonds
Tax allocation bonds in the amount of $9.02 million were issued to fund major
redevelopment projects, including the Foothill Shopping Center rehabilitation/expansion and
Block 36 downtown development. As part of the process, a thorough analysis of tax
increment and pass-through agreements was conducted, resulting in identification of
overpayments to Los Angeles County which were partially refunded back to the Agency and
correction of the base year assessed valuations for the new Central Business District,
Amendment 8, which was approved in FY 2003/04.
4. 2007 Tax Allocation Bonds
The Agency authorized issuance of $20.57 million in taxable and non-taxable bonds for
payoff of property acquisition loans and refunding the 1997 Tax Allocation Bonds. The
bonds closed in July 2007.
City of Azusa Five -Year Implementation Plan Midterm Review Page 6
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CBD Project
1. Long Range Plans
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Prepare Azusa Avenue Design Guidelines: 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 at a future time. A
parking survey to determine future parking needs for the Downtown area was completed and
paid for with a CalTrans grant.
Install Street Trees: In 1995 and 1996, the Agency planted trees on various lots throughout
Downtown and significant "gateway locations" (210 Freeway). New trees were also planted
in 1998 along Azusa Avenue as part of the Downtown public improvements program. In an
effort to carry on the beautification of the entire municipality, the citywide tree program will
be -continued at various locations throughout the redevelopment project areas if funds
become available for this purpose. No action has been taken during this implementation
plan cycle.
Implement Gateway Strategy: 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. No action has been taken during this implementation plan cycle.
Freeway Reader Board: The Agency contracted with a consultant to prepare a bid
specification/RFP for the upgrade/marketing of the existing obsolete freeway reader board.
The Agency Board selected Daktronics as the successful bidder for the design
upgrade/marketing. The project is on hold pending CalTrans approval.
Development of Downtown North with Transit -Oriented Uses: 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.
The Agency entered into an Exclusive Negotiation Agreement (ENA) with Watt-Genton
Commercial Properties (WGA) to create a strategic development plan and phased
development program for the area generally bounded,by 9'" Street on the north, the Foothill
Boulevard corridor on the south, San Gabriel Avenue on the west and Dalton Avenue on the
east. A Memorandum of Understanding and Reimbursement Agreement were approved,
two properties were acquired by the Agency for land assembly north of the Metro -Goldline
and appraisals were conducted on several other properties. Property acquisition offers have
been made for the Phase II portions of Downtown North and planning is under way for the
area north of the Metro -Goldline.
A Downtown North Advisory Committee (DNAC) was authorized by the City Council and
members appointed by the City Manager. The DNAC was established to review
development proposals for Downtown North and make recommendations to the City
Manager. The DNAC, the City Council and Planning Commission took tours to review
City of Azusa Five -Year Implementation Plan Midterm Review Page 7
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various mixed-use and residential projects in other Southern California cities and review
various concept plans prepared by WGA. Staff is working on a project application for the
Dalton Avenue properties and scheduled a Planning Commission public hearing in early
2008. The Dalton Phase was entitled on April 7, 2008. In addition, staff meets weekly to
review development proposals and entitlement process.
Dalton Properties — Redevelopment Site -Downtown North Phase I: This project is a
Downtown redevelopment opportunity for mixed use, retail and residential development
located within the boundaries of the Downtown North project and represents the first phase.
The Agency/City closed escrow on properties located at 716 North Dalton Avenue, 726
North Dalton Avenue, 728 North Dalton Avenue and 303 East Foothill Boulevard. The
Agency demolished the buildings, removed an underground tank and completed public
hearings with the Planning Commission and the City Council for entitlement and
development of the property.
Downtown North — Phase II: The Agency has made offers to acquire non-residential
properties north and south of the Metro -Goldline right-of-way and is working with the DNAC
on land use plans for this site.
2. Improve Physically Obsolete Properties
Provide Loans and Grants: 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.
• The Agency Board approved a $25,000 fagade grant for Jakes Hot Dogs & Sausage.
This project consists of the construction of an upscale walk-up hot dog and sausage
business at 246 North Azusa Avenue. In October/November 2007, the Agency
Board approved an $80,000 loan from the Economic Development Loan Program
("EDLP"). The new business opened in April 2008.
The La Tolteca Expansion project consists of the renovation of a former supermarket
building for the expansion of the La Tolteca restaurant located at 429 North Azusa
Avenue. The Agency provided financial assistance via a $25,000 fagade
'improvement grant. This expansion is now complete. The Agency is now working
with the owner to encourage a new restaurant to locate in the old space.
Create Pedestrian Breezeway: The Downtown Azusa Vision and Positioning Strategy
reaffirmed the creation of a passageway from the Heritage Court parking lot to Azusa
Avenue. Section 108 funds were programmed to construct the passageway improvement.
During FY 2005/06, WF Construction was selected to construct the breezeway. The project
was completed in April 2007, and includes decorative sidewalks, fountains, outside furniture,
tiling, public area, and landscaping. The Breezeway provides access from the Heritage
City of Azusa Five -Year Implementation Plan Midterm Review Page 8
Court Parking Lot to Azusa Avenue businesses and has provided a major new quality
amenity in the Downtown.
3. Develop Agency Sites and Assemble Key Sites
Development of Agency Properties (Block 36) — Azusa Village Center: Block 36 is generally
located at the southeast corner of Azusa Avenue and Foothill Boulevard. The Agency has
acquired several properties along this block including 632, 634, 636, 638 and 640 N. Azusa
Avenue, and 100-152 E. Foothill Boulevard. Although the Agency made an attempt to
negotiate a mixed-use project in 2002, the negotiations were unsuccessful. The Agency
selected a new developer in 2006.
Lowe Enterprise was selected to redevelop Block 36 into a first-class mixed-use housing
and retail development. Lowe Enterprises is a Los Angeles based national real estate
development firm. The proposal consists of a 3 -story building with 34,998 square feet of
ground floor retail space, 66 condominium residential units on the upper floors, and a 315
space subterranean parking structure. In January 2007, the Agency approved a Disposition
and Development Agreement (DDA) with Lowe. The last three properties necessary for the
project were acquired, and the site demolished and abated. Sale of the assembled site to
Lowe will be completed in 2008.
In January 2008, construction began on the Block 36 Offsite Utilities Project which the
Agency Board approved, and awarded the contract to BNB Engineering Inc. in the amount of
$793,851 to relocate utilities on the site.
Manage & Market Agency -Owned Properties: Table 3 highlights the status of the Agency -
owned properties as of December 31, 2007.
Ranch Market Retail Redevelopment Project: This project entails the redevelopment of the
site currently occupied by Ranch Market, Economy Auto and Community Garage for a
Target Store. The location of this project is the block bounded by 9th Street on the north,
Azusa Avenue on the east, MTA Metro Gold Line tracks on the south and San Gabriel
Avenue on the west. The Agency acquired one large and two smaller properties for this
development and has entered into settlement agreements with all tenants. In addition, the
Agency Board approved a contract for the preparation of the environmental studies for the
project and approved a contract for a traffic study for the proposed development of the site.
The CEQA studies are underway and staff meets on a bi-weekly bases with the Target
team. In December 2007, Target submitted a development application to the City.
Create Retail Nexus at Corner of Azusa Avenue and Arrow Highway: 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. Formerly occupied by
an unsafe former strip club building and currently 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 pursuing redevelopment
opportunities on both of these key city gateway sites.
City of Azusa Five -Year Implementation Plan Midterm Review Page 9
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Table 3
LIST OF AGENCY OWNED PROPERTY AS OF DECEMBER 31, 2007
List of Property
Property Type
Property Purchased prior to FY 2006107
Project
237 South Azusa/Chano's Acquisition
Commercial/Vacant Land
444 North Azusa (51h & Azusa)/Rogers
Vacant Land
600 North San Gabriel/Gallant
Vacant/Parking Lot
604 North San Gabriel/Arenas
Vacant/Parking Lot
614/620 North Azusa/Singleton
Parking Lot
North Azusa & North San Gabriel/Cunningham
Median
CBD -4 Site/112 Foothill -Marquis
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/116 Foothill -Hernandez
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/628 Azusa -Canyon City Hotel
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/630 Azusa -Blatt
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/634 Azusa -Delgado
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/636 Azusa -Allen
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/640 Azusa -Miller
CommercialNacant Land
Block 36/Lowe
CBD -4 Site/638 Azusa -Padilla (1)
CommercialNacant Land
Block 36/Lowe
726 North Dalton Avenue
Residential/Vacant Land
Downtown North
728 North Dalton Avenue
Residential/Vacant Land
Downtown North
303 East Foothill Boulevard
CBD -4 Site/100 East Foothill Boulevard
805 North Dalton Avenue
110-190 West Ninth Street
809 North Azusa Avenue
800-802 North San Gabriel Avenue
975 West Foothill Boulevard
Purchased in FY 2006107
Commercial/Florist
Commercial/Vacant Land
Commercial/Construction Office
Commercial/ Shopping Center
Commercial/Auto Repair
Commercial/Auto Repair
Commercial/Restau rant
Downtown North
Block 36/Lowe
Downtown North
Target Store
Target Store
Target Store
Marketing Site
Property Purchased 7/l/07-12131/07
152 East Foothill Boulevard/Parking Lot Only
(BofA) Commercial Parking Lot Block 36/Lowe
") Property purchased with Federal Section 108 Loan funds and owned by the Redevelopment Agency
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The Agency entered into an ENA with Kendrew Development for a restaurant/retail
project located at the northeast corner of Azusa Avenue and Arrow Highway. This
site is located within the unincorporated area of County of Los Angeles and the
annexation process has been initiated. The Los Angeles County Board of
Supervisors has approved the tax revenue resolution and LAFCO will hear the
proposal in April 2008.
An appraisal was performed on the site located at the northwest corner of Azusa
Avenue and Arrow Highway.
Redevelopment of the Foothill Shopping Center: 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 amended the redevelopment plan in 2003 to include the shopping
center site in order to allow for the redevelopment of the site.
The City/Agency entered into a Development Agreement with Trachman Indevco, a Los
Angeles -based developer to redevelop the 23 -acre Foothill Shopping Center built in the
1950's. The project includes rehabilitation and expansion of the shopping center and a 102 -
townhouse development.
The developer is constructing the exterior remodel of the Regency Theater, Ross Store, 99
Cents Only Store, CVS and is implementing various demolition plans. Tesco Fresh & Easy
Market entered into a lease with the developer to locate a store on the project site. The
developer closed escrow with Watt Communities on the townhouse parcel and the
residential pad demolition work has been initiated.
Development Block 37: This project involves the redevelopment of the southwest corner of
Azusa Avenue and Foothill Boulevard. Block 37 additionally involves the revitalization the
entire odd -numbered 600 block of Azusa Avenue.
Construction of the Talley Building located at 619 North Azusa Avenue, a mixed-use
historical building rehabilitation project that began during FY 2005/06, was
completed in FY 2006/07. This project is comprised of new office spaces and a
quality Italian restaurant that opened in March 2007. The Agency provided a
$450,000 grant to the developer for construction and a $150,000 loan for tenant
improvements. Additionally, a CDBG-funded EDLP loan of $70,000 was awarded
the tenant.
• The Dr. Reyes Building located at 613-615 North Azusa Avenue was completed.
The owner/developer assisted with a redevelopment loan, completed construction of
a state-of-the-art dental office and two loft apartments.
• With redevelopment financial assistance in the form of a land write-down, the
Cornerstone Plaza at Foothill Boulevard and Azusa Avenue was completed. The
developer acquired the former obsolete furniture store and a new retail center,
including a Starbucks, Subway, AT&T, and UPS Store, was constructed.
• The proposed Arriaza project located at 609 North Azusa Avenue consists of a
three-story, 14,000 square foot mixed use building with ground floor restaurant/retail,
second story banquet facility and four (4) apartment units on the 3rd floor.
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Demolition of the site has been completed and the owner submitted building plans to
the City in December 2007. The owner is currently negotiating a lease agreement
with a prospective restaurant tenant.
• The project located at the northwest corner of 6"' Street and Azusa Avenue consists
of added fagade improvements and additional retail space. Staff contacted owner's
representatives in late September 2007 and the owner has submitted preliminary
concept plans to the City's Planning Division which have now been approved.
• The former Smart City Grinds will be the new location for Max's Cuisine restaurant.
An application for a Minor Use Permit was approved in March 2007 for this site. The
Agency Board approved a $179,000 tenant improvement loan for Max's new
Downtown restaurant and the owner submitted building plans for first and second
plan check. Construction is underway, with an opening anticipated by June 2008.
4. Improve Business Opportunities
Create Downtown Revitalization Program: The Downtown Revitalization Program for Azusa
is modeled after the four -pronged 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 involves 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 was instrumental in
creating the Downtown Vision and Positioning Strategy. The strategy provides a program for
the marketing and leasing of the Downtown area.
Marketing Services to Owners and Tenants: 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.
Sunrise Cafe -- Agency staff worked with the property owner to encourage the re-
opening of this vacant building on Foothill Boulevard. T Burger has recently opened
their restaurant in this space.
Business Development Programs: The Agency provides financial assistance and
partnerships with the DABA and the Chamber of Commerce, working to increase their
participation and responsibilities. The Agency assisted moving the DABA from Block 36 to
the City's Barnes House in the Civic Center Park.
Marketing Services: The Agency participated in marketing efforts targeting developers and
businesses by attending International Council of Shopping Center conventions, attending
San Gabriel Valley Economic Partnership conferences, preparing two San Gabriel Valley
Tribune advertisements highlighting Azusa and its current projects, and purchasing a
specially designed marketing exhibit with graphics and lighting.
Provide Technical Assistance: The Agency assembled a team of technical service providers
and lenders to assist the businesses in the CBD. 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 is currently
inactive.
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Azusa Pacific University Science Center: The Azusa Pacific University (APU) submitted an
application and subsequently received full building permits to development a new 93,000
square foot Science Center. This is the first major new development under the APU Specific
Plan. Construction is currently underway.
5. Construct Housing to Improve Commercial Demand
Construct Housing on Infill Parcels: 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. The Agency has worked as part
of the Economic and Community Development Department to promote development of three
infill residential projects which are under construction: Azusa Court (24 units on South
Azusa Avenue); The Colony (Bates) (87 units on South Azusa Avenue); and The Foothill
Classics (Trademark Townhomes) (14 units on West Foothill Boulevard). No financial
assistance was needed from the Redevelopment Agency for these three projects.
West End Project
1. Improve the Physical Character of Structures and Create More Efficient
Development Sites
Provide Loans/Grants for Property Improvements: 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. No loans have been initiated during this review period.
Tenth Street and Vernon Avenue: This site, located at 850 West Tenth Street — southwest
corner of Tenth Street and Vernon Avenue, provides potential redevelopment opportunities
to relocate a Downtown auto repair and other businesses to Agency -owner property in the
West End Project. The Agency staff contacted an auto -related and other businesses
located in the Downtown North area, to determine interest in relocating to Tenth Street and
Vernon Avenue. The City Council approved the sale/transfer of the properties from the City
to the Agency. The Agency completed a parcel map, which was approved by the Planning
Commission. The Agency and Economy Auto entered into escrow for the sale of a portion
of the site. Escrow closed in April 2008.
975 West Foothill Boulevard: The site located at 975 West Foothill Boulevard was acquired
by the Agency as a possible relocation site. The Agency completed a lot line adjustment in
connection with the potential relocation.
Foothill Boulevard Car Wash: Conversion of the former 99 Cent store into a full service car
wash was recently completed and the facility is now in operation. This project represents
new investment on Foothill Boulevard and the West End Project.
Shell Gas Station: The reconstruction of the former blighted Texaco Gas Station into a
modern Shell Gas Station was completed at the northeast corner of Todd Avenue and
Foothill Boulevard.
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Costco East Development Concept: The Agency released a request for proposals for the
preparation of a preliminary retail development concept for the industrially developed
property east of the Costco Store. The project site is located on the south side of West
Foothill Boulevard, immediately east of the Costco Store. The Agency reviewed three
developer proposals and in July 2007 the Agency Board selected Newmark Merrill
Development and directed staff to prepare an .ENA. Staff continued discussions with
Newmark Merrill regarding the ENA issues during the months of August through November
2007. In December 2007, the Agency Board approved an ENA with Home Depot which is
undertaking due diligence on the site.
Verizon Wireless Switching Facility: Verizon Wireless Company is currently constructing a
42,000 -square foot telecommunications switching facility at 930 North Vernon Avenue.
Kincaid Re -Use & Implementation Plan: In conjunction with the City of Irwindale, the
Agency helped prepare a use and implementation program for the development of the
Kincaid pit located adjacent to Costco. The work program and implementation schedule
focused on retail/commercial uses and developer selection. The work program was
completed and an RFP was issued by the City of Irwindale and the City of Azusa during FY
2005106. While no developer was selected as a result of that RFP, marketing and the
search for a,developer is ongoing.
2. Improve Business Climate by Retention/Attraction
Regular Visits to Azusa Businesses: 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.
Streamline Approval Process: 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 was to be
available during 2006. Staff is currently working on updating the website. The Agency also
completed a new marketing brochure which is utilized regularly as part of its Economic
Development Program.
3. Construct Essential Public Facilities
Construct Public Improvements: Budget constraints have limited the Agency's ability to
upgrade public improvements.
Install Trees at Kev Location: In an effort to carry on the beautification of the entire
municipality, the Citywide tree program will be continued at various locations throughout the
project area. Amongst the areas that have been landscaped with trees is the Vernon Street,
Foothill Freeway off -ramp.
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Ranch Center Project
0
Staff continues to monitor the debt service requirements of the Ranch Center Project. The
shopping center, which comprises this project area, was sold to Azusa Pacific University in
August 2006, as a for-profit investment property. This has increased tax increment
revenues to the Agency.
Housing Programs
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.
The following Table 4 illustrates the number of grants and loans administered by the Agency
during the review period, including the dollars amounts of these grants and loans.
Table 4
STATUS OF SINGLE-FAMILY
HOUSING REHABILITATION PROGRAM
Source: The Redevelopment Agency of the City of Azusa
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
City of Azusa Five -Year Implementation Plan Midterm Review Page 15
Number of Grants
Fiscal Year
and Loans
Dollar
Amount
Funding Source
Grants
Loans
2004/2005
22
0
$ 88,030
CDBG Funds
0
3
$ 106,951
HOME Funds
2005/2006
37
0
$ 149,208
CDBG Funds
1
0
$ 1,095
Housing Funds
2006-2007
24
0
$ 90,685
CDBG Funds
14
0
$ 72,384
Housing Funds
0
2
$ 60,000
HOME Funds
July 1 —
16
0
$ 48,567
CDBG Funds
December 31,
2007
Source: The Redevelopment Agency of the City of Azusa
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
City of Azusa Five -Year Implementation Plan Midterm Review Page 15
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for very low-income senior citizens. The Agency is exploring opportunities to purchase
affordable housing covenants for senior housing in the Downtown North area.
3. Single -Family Affordable Townhomes
It is anticipated that a single-family project of 30 affordable townhomes will be developed by
the Agency during the next implementation plan cycle. The project will be available for low -
to moderate -income families. No action taken.
4. Downpayment Assistance Program
In October 2007, the Agency Board approved a Down Payment Assistance Program for low -
and moderate -income households and first-time homebuyers. In addition, the Agency
approved a budget amendment for $655,000 to fund this program and the program
guidelines. The Agency Board also authorized the Executive Director to enter into an MOU
with Coldwell Banker David Steven Company, and any other qualified lender to prescreen
and pre -approve program participants.
5. First Time Homebuyer Programs
Staff facilitated several first time homebuyer programs including: 1) provision of silent
second down payment assistance from Los Angeles County under the HOP Program,
helping low-income households acquire an existing Azusa home; 2) County issuance of
Mortgage Credit Certificates (MCC's) on behalf of the City of Azusa, to low-income Azusa
home buyers, reducing the cost of owning a home (an MCC allows the homeowner to take a
credit for either 10% or 20% of the interest paid, thereby increasing take-home pay and the
amount they can effectively borrow); and 3) provision of financing under the ICLFA ACCESS
and Cal Gold Programs, which fund second home loans for down payment and closing costs
to home buyers.
6. Specific Housing Projects
Arrow Highway Townhouses: Located in the CBD Project, this project proposes
development of 27 townhomes on a site currently containing auto related uses. This project
represents significant new investment for Arrow Highway Corridor. The Planning
Commission approved the project and two plan checks have been completed. Staff met
with the architect to encourage the developer to proceed with the project. The Developer
informed staff in November 2007 that the project was on hold due to economic conditions.
The Bates Company Town Homes (The Colony): This project entails the design review and
Tentative Tract Map for an 87 -unit townhome development in the South Azusa Corridor
within the CBD Project. Rough grading has been completed and the building permit and
sewer permit have been approved. The project is currently under construction.
Azusa Avenue/Leton Townhouses (Azusa Court): This completed project consists of a 24 -
unit townhouse development located at 740 South Azusa Avenue within the CBD Project.
Trademark Townhomes (The Foothill Classics): This project consists of the construction of
a 14 -unit townhome development that replaces a used car lot and five (5) former residential
structures. This project is located at the southeast corner of Foothill Boulevard and Sunset
Avenue within the CBD Project and is currently nearing completion.
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III. ADDITIONAL HOUSING REQUIREMENTS
Replacement Housing Requirements
Redevelopment law requires that all housing units serving low and moderate -income
households that are removed from a project area must be replaced within four years of their
demolition.
In August 2004, the Agency had prepared a Relocation Plan for the Dalton Properties
Acquisition. The site consisted of four (4) housing units comprised of four (4) households
that included three (3) tenants and one (1) owner. In accordance with the Relocation Plan
the replacement housing needs for this site are one (1) two-bedroom unit and two (2) three-
bedroom units for the tenants and one (1) two-bedroom unit for the owner. The following
table indicates the property location, when relocation occurred and when replacement unit
are required to be available.
Table 5
RELOCATION PROPERTIES AND
REPLACEMENT HOUSING REQUIREMENTS
Property Location
Relocation Date
Date Replacement
Unit Required
714 North Dalton Avenue
July 1988
July 1992
716 North Dalton Avenue
September 2002
September 2006
720 North Dalton Avenue
September 2002
September 2006
726 North Dalton Avenue
July 2005
July 2009
Source: Redevelopment Agency of the City of Azusa
In addition to the four residential units, there were two affected business uses. One, located
at 303 East Foothill Boulevard, was a small retail store tenant (approximately 1,125 square
feet) that sold fresh flowers and offered a dry-cleaning pick-up service. This business was
relocated in May 2007. The other business was an electrical contracting business located at
728 North Dalton Avenue in a 1,600 -square foot building that was owned and occupied by
the business owner. This business was relocated in October 2005.
City of Azusa Five -Year Implementation Plan Midterm Review Page 17
Inclusionary Housing Requirements
Redevelopment Law requires that a certain number of units built in the Project Area must be
affordable to low- and moderate -income families. Specifically, 15% of the total number of
units developed by an entity other than the Agency within the Project Area and 30% of units
developed by the Agency, constructed and owned by the Agency regardless of location are
required to be inclusionary.
The Agency will incur additional housing production units based upon the specific housing
projects built or currently under construction within the CBD Project. The total number of
units built or currently under construction during this review period is 149 units. The housing
production requirement for these units equals nine units affordable to very low-income
households and 13 units for low- and moderate -income households. However, based upon
the calculation contained within the Implementation Plan, the Agency will have a credit of 82
units at the conclusion of this plan cycle and will not be required to produce any additional
unit to maintain compliance with the inclusionary housing requirements.
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. During this review period, there have
been eight additional units sold prior to the expiration of the affordability convenants.
Assembly Bill 637- Statement of Awareness
Assembly Bill 637, which became effective January 1, 2002, created additional housing
requirements on redevelopment agencies. These changes are summarized as follows: (i)
20% set-aside funds must be spent in proportion to the community's need as defined in the
community's approved Housing Element, (ii) replacement housing units must remain
affordable for 45 years for ownership housing and 55 years for rental housing, and (iii)
inclusionary housing must be affordable for 45 years for ownership housing and 55 years for
rental housing. This implementation plan requires that Assembly Bill 637 be officially
addressed. Under Redevelopment Law, 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.
Redevelopment agencies, beginning January 1, 2002, are now required to spend housing
set-aside funds in proportion to the community's need as defined in the Housing Element.
Azusa's Housing Element concluded that there is a need for 183 very low-income units, 135
low-income units, and 156 moderate -income units. As a result, under the new law the
Agency must spend housing set-aside funds in the following proportions:
City of Azusa Five -Year Implementation Plan Midterm Review Page 18
Very Low Income
Low Income
Moderate Income
Total
11111T,9112=061
183
135
156
474
•
pro
39%
28%
33%
100%
Hence, the Agency must spend at least 39% of housing set-aside funds on housing
affordable to very low-income households, and at least 28% of housing set-aside funds on
low-income households. Additionally, the 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 7% of Azusa's population is above the age
of 65. Under the new law, effective January 1, 2002, only 7% of housing set-aside funds
may be spent on affordable senior housing.
IV. PUBLIC HEARING NOTIFICATION REQUIREMENTS
Notice of public hearings conducted pursuant to Redevelopment Law, shall be published
pursuant to Section 6063 of the Government Code, mailed at least three weeks in advance
to all persons and agencies that have requested notice, and posted in at least four
permanent places within the project area for a period of three weeks. Publication, mailing,
and posting shall be completed not less than 10 days prior to the date set for hearing.
The Notice of Public Hearing was published in the Azusa Herald on May 15, 22 and 29,
2008 and posted in at least four permanent places within the three project areas on May 14,
2008. This report was available for public review on at the City Clerk's Office and at the
Redevelopment Agency at 213 E. Foothill Boulevard, Azusa. In addition; the document was
available at the Azusa City Library at 729 N. Dalton Avenue.
V. RECOMMENDATION
Staff recommends that the Agency receive testimony on progress of the CBD Project, the
West End Project and the Ranch Center Project in compliance with Section 33490(c) of the
California Health and Safety Code.
City of Azusa Five -Year Implementation Plan Midterm Review Page 19