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Home My WebLink AboutAgenda Packet - November 29, 2004 - CCAGENDA SPECIAL MEETING OF THE CITY COUNCIL AZUSA LIGHT AND WATER 729 NORTH AZUSA AVENUE I. PRELIMINARY BUSINESS • Call to Order • Pledge to the Flag • Roll Call MONDAY, NOVEMBER 29,.2004 6:30 P.M. 11. PUBLIC PARTICIPATION - Please note that public comments are welcomed by recognition of the Mayor. III. AGENDA ITEMS A. Workshop on the City of Azusa Development Code Recommendation: Conduct workshop including staff presentations, and continue the Public Hearing to the December 6, 2004, City Council meeting for further discussion and action. B. Workshop on Redevelopment Bond Financine. Recommendation: Conduct workshop including staff presentation. IV. CLOSED SESSION A. EMPLOYEE EVALUATION (Gov. Cod Sec. 54957) Title: City Manager,. V. ADIOURNMENT A. Adjourn DEVELOPMENT CODE AGENDA WORKSHOP LIGHT & WATER CONFERENCE ROOM MONDAY, NOVEMBER 29, 2004 6:30 PM A. Workshop Intent and Format B. Continue Staff Presentations: ITEM PRESENTER 1. Neighborhood Issues: Lisa Brownfield Neighborhood General 2. Corridor Issue: Arrow Highway Lisa Brownfield 3. District Issues: Larry Onaga Phased Mixed -Use Downtown Park Once 4. Specific Use Issues: Larry Onaga Telecommunication facilities Sign Regulations Pole Signs Billboards 5. Residential use Issues: Larry Onaga Stacked Flats v. Courtyard Housing Frontage Types Minimum Unit Size 6. Density Bonuses Lisa Brownfield _7. Questions/Comments Lisa Brownfield and Larry Onaga C. Schedule Workshop Item TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: SHARON W. HIGHTOWER, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR VIA: JULIE A. GUTIERREZ, CITY MANAGER DATE: NOVEMBER 29, 2004 SUBJECT: 2004 CITY OF AZUSA DEVELOPMENT CODE (CODE AMENDMENT 220) AND ZONING MAP (ZONE CHANGE Z-2004-01) WORKSHOP RECOMMENDATION It is recommended that the City Council conduct workshop including staff presentations, and continue the public hearing to the December 6, 2004 City Council meeting for further discussion and action. BACKGROUND The City Council convened a public hearing regarding the Draft Development Code and the draft Zoning Map on November 1, 2004 and November 15, 2004. At the November 291" workshop, the City Council should continue the draft Development Code discussion. The intended topics include: Neighborhood Issues: Neighborhood General Corridor Issue: Arrow Highway • District Issues: • Phased Mixed -Use • Downtown Park Once Specific Use Issues: • Telecommunication facilities - Sign Regulations Pole Signs Billboards • Residential use Issues: • Stacked Flats v. Courtyard Housing • Frontage Types • Minimum Unit Size Density Bonuses Schedule Both the city staff and the development code consultants are anticipated to attend the workshop and will be available to respond to your questions. Please bring the following items with you to the workshop: Draft Development Code • Draft Zoning Map Addendum & Errata (printed on green paper) Article 2 Modification Log " Initially part of the Places and Changes document. FISCAL IMPACT It is anticipated that the Development Code's implementation may result in significant changes to the property and sales tax generated. PREPARED BY Lisa Brownfield, AICP Project Manager * Initially part of the Places and Changes document. Status of Redevelopment Bond Financing 11/29/2004 Recap Staff went to Council in May 2004 with a proposal to finance new redevelopment bonds Staff received approval to begin the process a Retained C.M. de Crinis as the Financial Advisor Retained HdL as the Fiscal Consultant 11/29/2004 2 Detail Review by Hdl Two issues identified by Hdl �- L.A. County Fire was receiving payments under an obsolete pass- through agreement. With the elimination of this error, a one-time back payment of $300,000 will be received and on-going we will have $100,000 available for debt service — Plan amendment issue regarding the base year calculation 11/29/2004 3 Debt Sizing Analysis Demonstrates that the Agency has approximately $400,000 available annually for debt service payments 11/29/2004 4 Azusa RDA Budget and Bonded Debt Sizing Analysis FYE June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Gross Revenue 5,912 5,894 5,966 6,038 6,113 6,234 6,363 6,495 6,630 6,767 6,907 Con. Fire District (One -Time) 300 513 523 523 523 523 523 523 523 523 523 Pass-Thru & County Admin (1,901) (1,959) (2,011) (2,063) (2,117) (2,173) (2,230) (2,289) (2,348) (2,409) (2,484) Housing (1,242) (1,179) (1,193) (1,208) (1,223) (1,247) (1,273) (1,299) (1,326) (1,353) (1,381) Agency Admin. 840 796 774 792 810 829 848 868 889 910 Net Revenue 3,069 2,756 2,762 2,767 2,773 2,814 2,860 2,907 2,956 3,005 3,042 Housing Funds available Reserve Fund earnings on Bonds 100 100 100 92 92 92 92 92 92 92 for Debt Sew. 409 409 409 409 409 409 409 409 409 409 409 Revenue Available for Debt Service & Agency Admin 3,478 3,165 3,171 3,176 3,182 3,223 3,269 3,316 3,365 3,414 3,451 ERAF 467 513 523 523 523 523 523 523 523 523 523 Series 1997 and 2003 Debt 1,457 1,283 1,281 1,283 1,278 1,276 1,272 1,275 1,275 1,273 1,274 Subordinate Lien Debt 541 367 368 369 369 356 360 358 360 356 357 Agency Admin. 840 796 774 792 810 829 848 868 889 910 932 Budgeted Expenditures 3,305 2,959 2,946 2,967 2,980 2,984 3,003 3,024 3,047 3,062 3,086 Reserve Fund earnings on Bonds 100 100 100 92 92 92 92 92 92 92 92 Supplementals 78 77 76 76 75 75 75 75 75 74 74 Available for New Debt 351 383 401 376 369 406 432 459 484 518 531 Assumptions Note 1 Revenue and pass-lhru information was taken from HdL report for the Series 2004 bond issue. Note 2 ERAF is held constant at the level that is known at this date. Note 3 Admin expense has been increased by 2% annually with 20% being paid out of Low and Mod Funds. Note 4 Supplemental are estimated at $100,00 per year less pass-through and housing 11/29/2004 Azusa RDA Budget and Bonded Debt Sizing Analysis FYE June 30 2016 2017 2018 2019 2020 2021- 2022 2023 2024 2025 2026 Gross Revenue 7,049 7,195 7,343 7,495 7,649 7,807 7,968 8,131 8,299 8,469 8,643 Con. Fire District (One -Time) 523 523 523 523 523 523 523 523 523 523 523 Pass-Thru & County Admin (2,561) (2,640) (2,720) (2,802) (2,810) (2,887) (2,966) (2,995) (3,074) (2,802) (2,823) Housing (1,410) (1,439) (1,469) (1,499) (1,530) (1,561) (1,594) (1,626) (1,660) (1,694) (1,729) Agency Admin. 955 978 1,002 1,027 1,052 1,078 1,105 1,133 1,161 1,184 Net Revenue 3,076 3,116 3,154 3,194 3,309 3,359 3,408 3,510 3,565 3,973 4,091 Housing Funds available Reserve Fund earnings on Bonds 92 92 92 92 92 92 92 52 for Debt Serv. 409 409 409 409 409 409 409 357 73 73 77 Revenue Available for Debt Service & Agency Admin 3,487 3,525 3,563 3,603 3,718 3,768 3,817 3,867 3,565 3,973 4,091 ERAF 523 523 523 523 523 523 523 523 523 523 523 Series 1997 and 2003 Debt 1,267 1,267 1,267 1,264 1,267 1,267 1,260 808 178 Subordinate Lien Debt 357 356 355 357 359 381 Agency Admin. 955 978 1,002 1,027 1,052 1,078 1,105 1,133 1,161 1,184 1,208 Budgeted Expenditures 3,102 3,124 3,147 3,171 3,201 3,249 2,888 2,464 1,862 1,707 1,731 Reserve Fund earnings on Bonds 92 92 92 92 92 92 92 52 Supplementals 74 73 73 73 73 73 73 73 73 77 77 Available for New Debt 550 566 581 597 682 684 1,093 1 1,528 1 1,7761 2,3431 2,437 11/2912004 Azusa RDA Budget and Bonded Debt Sizing Analysis FYE June 30 2027 2028 2029 2030 2031 2032 2033 2034 Gross Revenue 8,821 9,002 9,186 8,358 8,515 8,698 8,243 8,419 Con. Fire District (One -Time) Pass-Thru B County Admin (2,881) (2,940) (3,000) (3,044) (3,108) (3,173) (2,976) (3,040) Housing (1,764) (1,800) 01,837) 1( 672)_ _(1,703) (1,740) (1,649) (1,684) Net Revenue 4,176 4,262 4,349 3,642 3,704 3,785 3,618 3,695 Housing Funds available for Debt Serv. Revenue Available for Debt Service & Agency Admin 4,176 4,262 4,349 3,642 3,704 3,785 3,618 3,695 ERAF 523 523 523 523 523 523 523 523 Series 1997 and 2003 Debt Subordinate Lien Debt Agency Admin. 1,232 1,257 1,282 1,307 1,334 1,360 1,388 1,415 Budgeted Expenditures 1,755 1,780 1,805 1,830 1,857 1,883 1,911 1,938 Reserve Fund earnings on Bonds Supplementals 77 77 77 74 74 74 74 74 Available for New Debt 2,498 2,560 2,621 1,885 1,921 1,975 1,781 1,830 11/29/2004 Bond Sizing Table Demonstrates that $400,000 in debt service will yield $9.6 million in bonds Net proceeds available for projects in the amount of $E.0 million 11/29/2004 .5 Redevelopment Agency of the City of Azusa Series 2004 Tax Allocation Bonds Bond Sizing Table Parity Bonds Minimum Annual Debt Service Note 1 $ 200,000 $ 300,000 $ 400,000 Test Par Amount of Bonds $ 6,899,911 $ 8,288,524 $ 9,672,118 $ 13,182,004 Project Fund $ 5,666,454 $ 6,875,428 $ 8,079,754 $ 11,300,400 Debt Service Reserve Fund 689,991 828,852 967,212 1,150,357 Cost of Issuance 543,466 584,244 625,153 731,247 Note 1 Minimum annual debt service is the amount the Agency can pay on the 2004 bonds until the 1997 and 2003 TABS are retired. This may require reduction in administrative expenses. The structure required under this analysis uses a combination of current interest and capital appreciation bonds which defers the payment of principal until FYE 2024 Bond sizing is based upon the Parity Bonds Test results in the largest amount of bond proceeds and is limited by credit considerations rather than internal budgetary issues. This structure allows payment of principal to commence in the 2006 Fiscal year and minimizes the use of capital appreciation bonds. Redev Capital Projects Fund Current fund overview Impact of additional bond proceeds Future potential subsidies - Block 36 11/29/2004 6 Redevelopment - Capital Projects Fund Fund Balance 4,178,366.00 I. Revenues: Misc Revenues Sale of 615 N Azusa; 426 N San Gabr 87,892.00 Sec 108 Funds -Block 36 385,563.00 Sec 108 Funds -Pedestrian Breezeway 85,300.00 CDBG Funds -Pedestrian Breezeway 96,000.00 Advances from the City 1,890,000.00 Sale of 10th Street Property 1,117,000.00 Sale of 100 W. Foothill -Block 37 500,000.00 Total Revenue 4,161,755.00 II. Expenses: La Tolteca 29,700.00 Heritage Parking 47,500.00 Dr. Reyes 13,500.00 Commercial Rehabilitation 5,100.00 Pedestrian Breezeway 469,750.00 Downtown Rehab 17,000.00 Talley Building 591,160.00 Purchase of 100 W. Foothill -Block 37 1,595,000.00 Misc 53,376.00 Library Project Properties 997,450.00 Repayment of L&W Block 37 1,700,000.00 Repayment of L&W 10th St 828,000.00 Total Expenses 6,347,536.00 Net Income 1,992,585.00 Bond Proceeds 8,000,000.00 Less: Contribution to Azusa Commons (3,500,000.00) Less: Emergency Reserve (1,000,000.00) Revised Net Income 5,492,585.00 Future Potential Subsidies: a. Block 36 b. Block 37 Next Steps Prepare credit package to rating agencies RFP for underwriter Establish insurance requirements Prepare Preliminary Official Statement ®ec 2ot" Council Meeting recommending final approval 11/29/2004 7