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Home My WebLink About2002-11-26 - AGENDA REPORTS - FIVE YEAR PLAN NEWHALL PROJ (2)CITY OF SANTA CLARITA REDEVELOPMENT AGENCY AGENDA REPORT PUBLIC HEARING City Manager Approval• ,,,".hZ4,, Item to be presented by: Ken Pulskam DATE: November 26, 2002 SUBJECT: PROPOSED FIVE YEAR IMPLEMENTATION PLAN FOR THE NEWHALL REDEVELOPMENT PROJECT DEPARTMENT: City Manager RECOMMENDED ACTION Conduct public hearing and adopt a Resolution approving the Five Year Implementation Plan for the Newhall Redevelopment Project. BACKGROUND California Community Redevelopment Law requires that redevelopment agencies periodically adopt five year implementation plans for each redevelopment project area. The five year implementation plan includes the goals of the redevelopment plan, the proposed projects, programs and expenditures for the five year period, and demonstrates how implementation of the projects and programs would alleviate blighting conditions in the project area. The Project's first implementation plan was adopted in 1997, concurrent with the original adoption of the Newhall Redevelopment Plan. A new implementation plan for the 2002-03 through 2006-07 planning period has been prepared by Agency staff and consultants and is included with the accompanying resolution. The proposed Implementation Plan was developed based on a projection of Agency tax increment revenues. Growth remains very slow in the project area, so nonhousing programs will be primarily a conintuation of the fagade and screening program for the next five years. If additional funds are procured, the Agency's nonhousing program could also involve assistance to the new community center, a streetscape program, and economic development incentives. On the other hand, the Agency is expected to generate approximately $1.0 million of affordable housing fund revenues by the end of the planning period. Though no specific projects have been identified, the Implementation Plan establishes a goal of creating 3 affordable units in the Project Area during the next five years by either facilitating infill construction or rehabilitation of existing structures. The availability of housing fund revenues should be viewed as one potential catalyst for Project Area revitalization. ScmoROA Agenda Item opted: Incorporated into the Implementation Plan is an amended Ten Year Affordable Housing Compliance Plan, which identifies the Agency's inclusionary and replacement housing obligations, and strategies for fulfilling its obligations during the ten year planning period (1997- 98 through 2006-07) and over the life of the Redevelopment Plan. With respect to inclusionary housing, only a limited amount of new housing construction will occur in the Project Area during the planning period; with the completion of the 200 unit Canyon Country Senior apartments (outside the Project Area), the Agency's inclusionary obligation for one affordable unit for the planning period will be easily met. Also, the Compliance Plan indicates that the Agency does not have any projects planned that would result in displacement of low and moderate income housing, and the Agency is not expected to face a need to construct replacement housing at this time. On November 4, the Redevelopment Committee received a presentation from staff and consultants on the proposed Implementation Plan. ALTERNATIVE ACTION Other action as determined by the Redevelopment Agency. FISCAL IMPACT None. Adoption of the Implementation Plan does not approve any specific project, program, or expenditure. The Agency will consider projects on a case-by-case basis through the budget process. ATTACHMENTS RDA Resolution Five Year Implementation Plan Ten Year Affordable Housing Compliance Plan DATA:RSG:Santa Clarita:lmplementaGonPian:srimppin.doc CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING Pursuant to Section 33490 of the California Community Redevelopment Law, Health and Safety Code Sections 33000 et. Seq. ("Law"), the Redevelopment Agency of the City of Santa Clarita ("Agency") will conduct a public hearing to consider adoption of a Five -Year Implementation Plan ("Plan") for the Newhall Redevelopment Project ("Project"). The proposed Plan will set forth the Agency's goals, objectives, and anticipated programs, projects, and expenditures for the ensuing five-year period beginning in the fiscal year 2002 — 2003 and terminating at the end of fiscal year 2006 — 2007. The Plan will explain how these components will eliminate blight and increase and improve the supply of affordable housing; it will also address the Agency's status in meeting affordable housing requirements. NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Boulevard, 1" Floor, Santa Clarita, California on the 26th day of November, 2002, at or after 6:00 p.m. to consider the above Five -Year Implementation Plan for the Newhall Redevelopment Project. Proponents, opponents, and any interested persons may apperar and be heard on this matter at that time. The draft Plan will be available for public inspection, beginning October 25, 2002, with the City Clerk, Santa Clarita City Hall, 23920 Valencia Boulevard, Santa Clarita, California 91355- 2196. Should you have any questions regarding the proposed Plan, please contact Andree Walper at (661) 286 — 4166. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: October 23, 2002 Sharon L. Dawson, CMC City Clerk Published on: October 27, 2002 November 7, 2002 November 14, 2002 November 21, 2002 phBDAplan.doc EXHIBIT A FIVE YEAR IMPLEMENTATION PLAN FOR THE NEWHALL REDEVELOPMENT PROJECT Newhall Redevelopment Project Five -Year Implemn etation Plan (2002-03 through 2000.07 October 22, 2002 RedevelopmentAgency of the City of Santa ClarPa 23920 Valencia Boulevard, Suite 300 Santa Clarita, Califomia 91355-2196 Rosenow Spevaoek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701 Phone: (714) 541-4585 Fax: (714) 836-1748 E -Mail: info@webrsg.com Five -Year Implementation Plan Newhall Redevelopment Project Introduction................................................................................1 Contents of the Implementation Plan Background................................................................................ 2 PlanLimitations................................................................................................2 BlightingConditions........................................................................................2 Goals of the Constituent Redevelopment Plans..........................................4 Anticipated Planning Period Projects and Programs................7 Planned Nonhousing Programs.....................................................................7 Facade and Screening Programs................................................................7 Contingent Nonhousing Projects...................................................................8 NewCommunity Center...............................................................................8 StreetscapeProgram....................................................................................9 Economic Development Incentives........................................................... 10 HousingPrograms.........................................................................................12 Future Affordable Housing Projects.......................................................... 12 Five -Year Budget......................................................................15 Housing Unit Estimates...........................................................17 Appendix - Ten -Year Affordable Housing Compliance Plan ...19 Fig -Year Implementation Plan Newhall Redevelopment Project The Agency was created by the City of Santa Clarita (the "City") City Council on November 28, 1989 by Ordinance No. 89-27 to undertake redevelopment activities that remove physically and economically blighted conditions that inhibit and continue to plague economic growth in the City. The Agency's first and only redevelopment project area was established by the City Council on July 8, 1997, by Ordinance No. 97-12. The Newhall Redevelopment Plan ("Plan") has not been amended since its original adoption. The 913.63 -acre Project Area includes retail, industrial, public and residential properties generally along the Lyons Avenue and San Fernando Road corridors. The historic Downtown Newhall area, nearly 2,000 residential units and the Metrolink station are within the Project Area boundaries. Plan Limitations The Redevelopment Plan limits are summarized in Table 1 below. Redevelopment Plan Limits TABLE 1 Newhall Redevelopment Project Financial Limits Amount of Bonded Indebtedness $60,000,000 Outstanding at One Time Time Limits Commence Eminent Domain Aug. 7, 2009 Incur Debt Jul. 8, 2017 Redevelopment Plan Duration Jul. 8, 2027 Collect Tax Increment Revenue Jul. 8, 2042 Blighting Conditions Redevelopment projects are established to remedy conditions of blight as defined by Law. The current definition of blight, as stated in Section 33031 of the Law, is set forth below: Unsafe/Dilapidated/Deteriorated Buildings. Buildings in which it Is unsafe or unhealthy for persons to live or work. Serious building code violations, dilapidation and deterioration, defective design or physical ROSENOW SPEVACEK GROUP, INC. PAGE 2 Five -Year Implementation Plan Newhall Redevelopment Project This document is the second Five -Year Implementation Plan ("Plan") for the Newhall Redevelopment Project ("Project") of the Redevelopment Agency of the City of Santa Clarita ("Agency"). This Plan presents the Agency's goals and objectives, anticipated projects and programs, and estimated expenditures for the five year planning period beginning in fiscal year 2002-03 and terminating at the end of fiscal year 2006-07. Contents of the Implementation Plan Section 33490 of the California Community Redevelopment Law, Health and Safety Code Section 33000 et. sea. ("Law"), requires this Plan to include the following: • Specific Agency goals and objectives for the Newhall Redevelopment Project Area ("Project Area"); Specific programs, potential projects, and estimated expenditures proposed by the Agency over the next five years, and; An explanation of how Agency goals, objectives, programs, and expenditures will eliminate blight within the Project Area and improve and increase the supply of housing affordable to very low, low, and moderate income households. The Law also requires that this Plan address the Agency's affordable housing production and replacement housing needs and achievements. These items are specifically addressed in the Ten -Year Affordable Housing Compliance Plan, attached hereto as Appendix "A". ROSENOW SPEVACEK GROUP, INC. PAGE 1 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT construction, faulty or inadequate utilities, or other similar factors can cause these conditions. ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. • Incompatible Uses. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. • Lots of Irregular Shape, Inadequate Size, and Under Multiple Ownership. The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. • Depreciated/Stagnant Property Values; Impaired Investments. Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). ■ High Business Turnovers and Vacancies/Low Lease Rates/Abandoned Buildings/Vacant Lots. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. • Lack of Neighborhood Commercial Facilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. • Overcrowding/Excess of Adult Businesses. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults that has led to problems of public safety and welfare. • High Crime Rates. A high crime rate that constitutes a serious threat to the public safety and welfare. The Law also characterizes inadequate public improvements as blight when the aforementioned conditions are present. ROSENOW SPEVACEK GROUP, INC. PAGE 3 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT According to the Agency's June 24, 1997 Report to the City Council for the Newhall Redevelopment Project, the Project Area contained the following blighting conditions: • Unsafe/Unhealthy Buildings — 18% of the buildings were deemed structurally unsafe, and 97% were affected by other serious conditions including serious flooding danger, lead-based paint and asbestos, substandard additions and major code violations, and earthquake damage. ■ Factors Hindering the Economically Viable Use of Buildings or Lots — 70% of the commercial parcels were too small, while improvement values among all properties averaged 33% below the City average. ■ Lots of Irregular Form Shape and Size in Multiple Ownership — 20% of all parcels contained this condition. • Depreciating/Stagnant Property Values — Assessed and sales values substantially below those elsewhere in the City. ■ Low Lease Rates — Commercial lease rates were 50% lower than City average. ■ Residential Overcrowding — More than one person per room frequently in east Newhall area. ■ High Crime Rates — the Project Area accounted for approximately 36.9% of the Citywide crime. Goals of the Constituent Redevelopment Plans Section 200 of the Redevelopment Plan contains several goals for the Project Area. These goals formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities over the next five years. i) Expand the convenience and comparison/specially economic niches. s) Create an attractive Main Street environment on San Fernando Road to attract new shoppers and businesses. 3) Create an attractive, memorable image that expresses Newhall's history and character. 4) Establish programs to promote private sector investment. s) Enhance the role of Newhall as a community center. ROSENOW SPEVACEK GROUP, INC. PAGE 4 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT a> Maintain and capitalize on the visibility and access associated with through traffic. 7> Improve the parking supply. at Pursue opportunities for special facilities that attract a wide visitor base. s> Eliminate blighting conditions and prevent the acceleration of blight in and about the Project Area. ion Develop programs and incentives for the rehabilitation of old, obsolescent, and deteriorating structures in the Project Area. iii Promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the Project Area. 12) Use redevelopment authority to promote development that is consistent with the General Plan and the Zoning Ordinance. 18) Promote the design and construction of a more efficient and effective circulation system. 94> Provide for adequate parcels and required public improvements to induce new construction and/or rehabilitation by private enterprise. is) Promote the rehabilitation of existing housing units now affordable to persons and families of low- and moderate- income, and promote the construction of replacement housing units where existing units cannot be feasibly be rehabilitated. 16) Promote the development of new and diverse employment opportunities. 17) Consolidate parcels as needed to induce new or expanded, centralized, commercial development in the Project Area. 18) Upgrade the physical appearance of the Project Area. ie) Remove economic impediments to land assembly and in -fill development in areas that are not properly subdivided for development or redevelopment. 2o) Encourage the phasing out of incompatible, and/or non -conforming land uses from the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 5 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT 21) Mitigate potential relocation impacts resulting from changes in Project Area land use from non -conforming and dilapidated used to development in conformance with the General Plan, and the Zoning Ordinance. 22) Provide replacement housing as required by law when dwelling housing low- or moderate -income persons or families are lost to the low- or moderate -income housing market. 23> Encourage the cooperation and participation of Project Area property owners, public agencies and community organizations in the elimination of blighting conditions and the promotion of new or improved development in the Project Area. 24) Provide a procedural and financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community. ROSENOW SPEVACEK GROUP, INC. PAGE 6 Fig -Year Implementation Plan Newhall Redevelopment Project The following narrative describes the non -housing and housing programs proposed for the next five years. Anticipated expenditures are based upon projected tax increment revenue over fiscal years 2002-03 to 2006-07. Greater or lesser funding may be available, depending upon changes of assessed valuation in the Project Area. For this reason, the Agency has conservatively estimated expenditures and implementation activities. In the event that more funds are available to the Agency during the planning period, additional projects may be undertaken. These additional projects are identified as "contingent" programs below. Planned (Nonhousing Programs Facade and Screening Programs The Facade and Screening Programs create an avenue for property owners and businesses to work in partnership with the Santa Clarita Agency to improve the physical appearance of properties within the Downtown Newhall commercial core. The goal of these programs is to utilize redevelopment funds to promote private investment and improvements in order to eliminate blighting conditions and improve commercial vitality in the area. The Redevelopment Agency will pay 50% up to $25,000 of approved restoration to facades, architectural enhancements, new windows, awnings, utility relocation, exterior lighting, building and planning permits, new entrances, visible roofs, exterior improvements related to handicapped accessibility requirements, and screenings of outdoor areas. Expenditures The Agency expects to fund approximately $65,000 in 2002-03, and $23,000 per year thereafter. Plan Objective the Proiect Will Address • Create an attractive Main Street environment on San Fernando Road to attract new shoppers and businesses. • Create an attractive, memorable image that expresses Newhall's history and character. ROSENOW SPEVACEK GROUP, INC. PAGE 7 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT ■ Establish programs to promote private sector investment. ■ Eliminate blighting conditions and prevent the acceleration of blight in and about the Project Area. • Develop programs and, incentives for the rehabilitation of old, obsolescent, and deteriorating structures in the Project Area. ■ Promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the Project Area. • Provide for adequate parcels and required public improvements to induce new construction and/or rehabilitation by private enterprise. • Upgrade the physical appearance of the Project Area. ■ Encourage the cooperation and participation of Project Area property owners, public agencies and community organizations in the elimination of blighting conditions and the promotion of new or improved development in the Project Area. ■ Provide a procedural and financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community. Condition of Blight the Project Will Address • Factors Hindering the Economically Viable Use of Buildings/Lots Contingent Nonhousing Projects New Community Center The Santa Clarita Community Center opened in 1994, with the goal of creating a place where children and families can participate in a variety of recreational and educational activities in a safe and fun environment. The current facility is detiorating, and a new building is being funded by the City of Santa Clarita. The daily activities associated with this type of facility establishes a base level of activity that is an essential element of a successful downtown district. In addition to the Community Center itself, a town plaza will be created to offer .a public space as a mechanism to create civic character in the downtown commercial district. Expenditures ROSENOW SPEVACEK GROUP, INC. PAGE 8 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT At present, the Agency does not anticipate that any Agency funds will be uesd for this project during the planning period. Plan Objective the Project Will Address ■ Enhance the role of Newhall as a community center. • Pursue opportunities for special facilities that attract a wide visitor base. ■ Promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the Project Area. • Use redevelopment authority to promote development that is consistent with the General Plan and the Zoning Ordinance. ■ Upgrade the physical appearance of the Project Area. Condition of Blight the Proiect Will Address • Depreciated/Stagnant Property Values ■ High Crime Rates Streetscape Program The Streetscape Program will transform San Fernando Road from a highway to a main street and improve the quality of the pedestrian space. Since the streetscape in a main street commercial district is as important in terms of attracting clientele as the businesses themselves, efforts need to be made to make the pedestrian space as inviting as possible. Such amenities such as ornamental street lights, attractive new benches, planters and decorative paving will be incorporated along San Fernando Road. Expenditures At present, the Agency does not anticipate that any Agency funds will be uesd for this project during the planning period. Plan Objective the Project Will Address • Expand the convenience and comparison/specially economic niches. ■ Create an attractive Main Street environment on San Fernando Road to attract new shoppers and businesses. ROSENOW SPEVACEK GROUP, INC. PAGE 9 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT • Create an attractive, memorable image that expresses Newhall's history and character. • Establish programs to promote private sector investment. ■ Enhance the role of Newhall as a community center. • Maintain and capitalize on the visibility and access associated with through traffic. • Pursue opportunities for special facilities that attract a wide visitor base. • Promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the Project Area. • Promote the design and construction of a more efficient and effective circulation system. • Upgrade the physical appearance of the Project Area. ■ Remove economic impediments to land assembly and in -fill development in areas that are not properly subdivided for development or redevelopment. ■ Provide a procedural and financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community Condition of Blight the Project Will Address • Factors Hindering the Economically Viable Use of Buildings/Lots Economic Development Incentives The Agency will continue its efforts to seek motivated property owners, developers and businesses to revitalize their property in a manner consistent with the Plan. Where appropriate and economically feasible, the Agency may provide financial, technical, or other assistance to property owners or developers to construct new buildings or rehabilitate existing structures. Because these incentives are provided on a case-by- case basis, and no specific developments are targeted at this time, the Agency is not able to identify sites or particular instances where such incentives could be offered during the planning period. ROSENOW SPEVACEK GROUP, INC. PAGE 10 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT Expenditures At present, the Agency does not anticipate that any Agency funds will be uesd for this project during the planning period. Plan Objective the Project Will Address • Expand the convenience and comparison/specially economic niches. • Create an attractive Main Street environment on San Fernando Road to attract new shoppers and businesses. ■ Create an attractive, memorable image that expresses Newhall's history and character. ■ Establish programs to promote private sector investment. ■ Maintain and capitalize on the visibility and access associated with through traffic. • Improve the parking supply. • Pursue opportunities for special facilities that attract a wide visitor base. • Eliminate blighting conditions and prevent the acceleration of blight in and about the Project Area. ■ Develop programs and incentives for the rehabilitation of old, obsolescent, and deteriorating structures in the Project Area. ■ Promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the Project Area. • Use redevelopment authority to promote development that is consistent with the General Plan and the Zoning Ordinance. • Promote the design and construction of a more efficient and effective circulation system. ■ Provide for adequate parcels and required public improvements to induce new construction and/or rehabilitation by private enterprise. • Promote the development of new and diverse employment opportunities. ROSENOW SPEVACEK GROUP, INC. PAGE 11 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT • Consolidate parcels as needed to induce new or expanded, centralized, commercial development in the Project Area. ■ Upgrade the physical appearance of the Project Area. • Remove economic impediments to land assembly and in -fill development in areas that are not properly subdivided for development or redevelopment. ■ Encourage the phasing out of incompatible, and/or non -conforming land uses from the Project Area. • Encourage the cooperation and participation of Project Area property owners, public agencies and community organizations in the elimination of blighting conditions and the promotion of new or improved development in the Project Area. • Provide a procedural and financial mechanism by which the Agency can assist, complement and coordinate public and private development, redevelopment, revitalization and enhancement of the community Condition of Blight the Project Will Address ■ Unsafe/Unhealthy Buildings • Factors Hindering the Economically Viable Use of Buildings/Lots ■ Lots of Inadequate Form Shape and Size Under Multiple Ownership • Stagnant/Depreciating Property Values • Low Lease Rates • High Crime Rates Housing Programs Future Affordable Housing Projects The Agency may, to the extent permitted by law and land use designation, inside or outside the Project Area, acquire land, sell or lease land, donate land, improve sites, price restrict units, construct or rehabilitate structures, or use any other method authorized by California Community Redevelopment Law in order to provide housing for persons and families of low or moderate income. The Agency may also provide subsides to, or ROSENOW SPEVACEK GROUP, INC. PAGE 12 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT for the benefit of, such persons and families or households to assist them in obtaining housing within the City. The Agency will continue its efforts to seek motivated property owners, developers and builders to partner and meet the affordable housing standards set for the Agency by California Community Redevelopment Law. The City through its General Plan and CDBG Consolidated Plan will explore programs and funding (in addition to tax increment set-aside funds) for city wide production of affordable housing. It is expected the Agency's affordable housing production requirements to build very -low and low -moderate income units will benefit from this action. The above actions will result in the building a minimum of 1 low -moderate housing unit and 2 very low housing units within the Project Area with in the implementation period. Over the Implementation Period, the Agency will consider in a owner and renter occupied rehabilitation program targeted in the Project Area. Expenditures Contingent on project need, up to $1 million Plan Objectives the Proiect Will Address ■ Establish programs to promote private sector investment. • Eliminate blighting conditions and prevent the acceleration of blight in and about the Project Area. ■ Develop programs and incentives for the rehabilitation of old, obsolescent, and deteriorating structures in the Project Area. • Promote the comprehensive planning, redesign, replanning, reconstruction and/or rehabilitation in such a manner as to achieve a higher and better utilization of the land within the Project Area. ■ Use redevelopment authority to promote development that is consistent with the General Plan and the Zoning Ordinance. ■ Promote the rehabilitation of existing housing units now affordable to persons and families of low- and moderate- income, and promote the construction of replacement housing units where existing units cannot be feasibly be rehabilitated. • Upgrade the physical appearance of the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 13 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT Provide replacement housing as required by law when dwelling housing low- or moderate -income persons or families are lost to the low- or moderate -income housing market. Condition of Blight the Proiect Will Address • Not applicable ROSENOW SPEVACEK GROUP, INC. PAGE 14 Fire -Year Implementation Plan Newhall Redevelopment Project Tables 2 and 3 present a preliminary five-year budget for the Nonhousing and Housing Fund, respectively. Actual revenues and expenditures may differ from these forecasts and are therefore subject to change. RSG projected the remaining year's revenues and expenditures based on the assumptions delineated below: • Revenue and expenditures for fiscal year 2002-03 were based on the Agency's current budget ■ Future tax increment revenues were projected based on a 3% increase in the secured assessed value in the Project Areas. • Interest earnings were estimated based on net revenues and beginning fund balances. • Taxing agency payments from the nonhousing fund have been calculated pursuant to Section 33607.5 of the Law. ■ City loan repayments are equal to 25% of the gross annual tax increment revenue, consistent with current policy. • Personnel and Operations expenditures were based on the City budget and forecasts from the City Finance Department. • Capital project costs were obtained from the 2002-03 budget and staff estimates. ROSENOW SPEVACEK GROUP, INC. PAGE 15 FIVE-YEAR IMPLEMENTATION PLAN NEWHALL REDEVELOPMENT PROJECT Nonhousing Fund Cash Flow Projections TABLE 2 Newhall Redevelopment Project Ending Available Balance $ 31,857 $ 40,866 $ 67,307 $ 112,609 $ 176,409 Nonhousing Capital Projects Detail Facade Program 65,000 23,000 23,000 23,000 23,000 157,000 Total 65,000 23,000 23,000 23,000 23,000 157,000 Housing Fund Cash Flow Projections TABLE 3 Newhall Redevelopment Project 2002-03 2003-04 2004-05 2005-06 2006-07 Total Available Cash Balance $ $ 31,857 $ 40,866 $ 67,307 $ 112,609 Revenue Tax Increment Revenue 480,327 552,660 627,162 703,900 782,939 3,146,988 City Advances 79,720 9,000 12,000 17,000 12,000 79,720 Total 560,047 552,660 627,162 703,900 782,939 3,226,708 Expenditures Taxing Agency Payments 129,088 148,527 168,550 189,173 210,415 845,753 Debt Service: City Loan 150,102 172,706 195,988 219,969 244,669 983,434 Personnel & Operations 184,000 199,417 213,183 226,456 241,056 1,064,112 Capital Projects (See Detail) 65,000 23,000 23,000 23,000 23,000 157,000 Total 528,190 543,650 600,721 658,598 719,139 3,050,299 Net Cash Flow 31,857 9,009 26,441 45,302 63,800 176,409 Ending Available Balance $ 31,857 $ 40,866 $ 67,307 $ 112,609 $ 176,409 Nonhousing Capital Projects Detail Facade Program 65,000 23,000 23,000 23,000 23,000 157,000 Total 65,000 23,000 23,000 23,000 23,000 157,000 Housing Fund Cash Flow Projections TABLE 3 Newhall Redevelopment Project Net Cash Flow 126,082 147,165 168,791 (207,025) 207,735 442,747 Ending Available Balance $ 351,592 $ 498,757 $ 667,547 $ 460,522 $ 668,257 ROSENOW SPEVACEK GROUP, INC. PAGE 16 2002-03 2003-04 2004-05 2005-06 2006-07 Total Available Cash Balance $ 225,510 $ 351,592 $ 498,757 $ 667,547 $ 460,522 Revenue Tax Increment Revenue 120,082 138,165 156,791 175,975 195,735 786,747 Interest Earnings 6,000 9,000 12,000 17,000 12,000 56,000 Total 126,082 147,165 168,791 192,975 207,735 842,747 .Expenditures Future Housing Projects 400,000 400,000 Total - - - 400,000 - 400,000 Net Cash Flow 126,082 147,165 168,791 (207,025) 207,735 442,747 Ending Available Balance $ 351,592 $ 498,757 $ 667,547 $ 460,522 $ 668,257 ROSENOW SPEVACEK GROUP, INC. PAGE 16 Five -Year Implementation Plan Newhall Redevelopment Project Section 33490(2)(A) of the Law requires that this Plan address housing revenues and expenditures, as well as any applicable housing production activities over the next five years. These elements are included in the Agency's Ten -Year Affordable Housing Compliance Plan, incorporated herein by reference. Additionally, Section 33490(2)(6) requires various estimates of housing unit production over the time frame of the next five years, next ten years, and over the duration of the Redevelopment Plan. These estimates are included in Table 4. ROSENOW SPEVACEK GROUP, INC. PAGE 17 Housing Unit Estimates TABLE 4 Newhall Redevelopment Project Total Number of Market Rate and Affordable Units C 0 N (H&S Sec. 33490(a)(2)(B)(i)) Time Frame U ¢s n/a 10 30 a Total Number of Market Rate and Affordable Units to be Developed or Purchased, Both Over the Life of the Plan and the Next 10 Years (H&S Sec. 33490(a)(2)(B)(i)) New Construction n/a n/a 10 30 Substantial Rehabilitation n/a n/a - - Price Restricted n/a n/a Total n/a n/a 10 30 Inclusionary Requirement of Units to be Developed, Both Over the Life of the Plan and the Next 10 Years (H&S Sec. 33490(a)(2)(B)(ii)) Low and Moderate n/a n/a 1 3 Very Low Income n/a n/a 1 2 Total n/a n/a 2 5 Number of Units Which Have Been Developed to Meet the Inclusionary Requirement (H&S Sec. 33490(a)(2)(B)(iii)) Low and Moderate Income 100 n/a n/a n/a Very Low Income n/a n/a n/a Total 100 n/a n/a n/a Number of Units Which Will be Developed by the Agency During the Next 5 Years (H&S Sec. 33490(a)(2)(B)(iv)) n/a - n/a n/a Number of Affordable Income Units Which Will be Developed by the Agency During the Next 5 Years (H&S Sec. 33490(a)(2)(8)(v)) Low and Moderate Income n/a - n/a n/a Very Low Income n/a n/a n/a Total n/a - n/a n/a 1/ "n/a" means not applicable by Redevelopment Law ROSENOW SPEVACEK GROUP, INC. PAGE 18 Five -Year Implementation Plan Newhall Redevelopment Project ROSENOW SPEVACEK GROUP, INC. Newhall Redevelopment Project Ten -Year Affordable Housing Compliance Plan (I 997=M through 2006407) October 22, 2002 RedevelopmentAgency of the City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clada, California 91355-2196 Rosenow Spevacek Group, Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701 Phone: (714) 541-4585 Fax: (714) 836-1748 E -Mail: info@webrsg.com Ten -Year Affordable Housing Compliance Plan Newhall Redevelopment Project Introduction................................................................................1 Legal Requirements for Compliance Plans..................................................1 Contents of the Compliance Plan...................................................................2 Purpose..............................................................................................................3 Methodology and Data Compilation..............................................................3 Affordable Housing Production Needs.......................................4 Planning Period Production Needs................................................................4 Production Needs over Duration of Redevelopment Plan..........................5 Replacement Housing Production Needs..................................6 Estimated Housing Program Resources....................................7 Targeting of Housing Fund Expenditures.....................................................7 Proposed Implementation Initiatives ........................................ 9 Future Planning Period Housing Projects....................................................9 Potential Sites for Future Production Housing............................................9 Housing Element Consistency.................................................10 G:\RSG\SANTA CLARITA\IMPLEMENTATIONPLANW SGPLAN.DOC Ten -Year Aflbrdable Housing Compliance Plan Newhall Redevelopment Project This document is the Ten -Year Affordable Housing Compliance Plan ("Compliance Plan") for the Newhall Redevelopment Project ("Project') of the Redevelopment Agency of the City of Santa Clarita ("Agency'). This Compliance Plan incorporates a summary of the Agency's affordable housing production activities since fiscal year 1997-98 and presents an affordable housing production plan for the balance of the ten-year planning period (to fiscal year 2006-07). In sum, this Compliance Plan delineates a ten-year affordable housing production requirement of one (1) unit, which must be available to households of low or moderate income. With the completion of the 200 unit Canyon Country Senior apartment complex outside the Newhall Redevelopment Project Area ("Project Area"), the Agency will receive credit for 100 affordable housing units created for the Project Area. With this 100 -unit credit, Agency anticipates exceeding the planning period production requirement by 99 units. These 99 units are available to meet future affordable housing requirements. The Agency was created by the City of Santa Clarita ("City") City Council on November 28, 1989 by Ordinance No. 89-27 to undertake redevelopment activities that remove physically and economically blighted conditions that inhibit and continue to plague economic growth in the City. The Agency's first and only redevelopment project area was established by the City Council on July 8, 1997, by Ordinance No. 97-12. The Newhall Redevelopment Plan ("Plan") has not been amended since its original adoption. The 913.63 -acre Project Area includes retail, industrial, public and residential properties generally along the Lyons Avenue and San Fernando Road corridors. The historic Downtown Newhall area, nearly 2,000 residential units and the Metrolink station are within the Project Area boundaries. Legal Requirements for Compliance Plans Pursuant to the requirements of Section 33413(b)(4) and 33490(a)(2) and (3) of the California Community Redevelopment Law, Health and Safety Code Section 33000 et. seq. ("Law"), this Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of very low, ROSENOW SPEVACEK GROUP PAGE 1 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN NEWHALL REDEVELOPMENT PROJECT low, and moderate -income housing units will be produced as a result of new construction or substantial rehabilitation. Compliance with AB 637 and SB 701 This Compliance Plan is consistent with recent changes enacted into the Law pursuant to Assembly Bill 637 (Lowenthal) and Senate Bill 701 (Todakson). Among these significant amendments are: ■ 55145 Year Minimum Affordability Periods: Effective January 1, 2002, all units assisted by the Housing Fund, replacement housing, and production housing must be affordable for 55 years (rental units) or 45 years (owner -occupied units). Units assisted, rehabilitated or constructed prior to January 1, 2002 may have shorter time limits. Substantial Rehabilitation: Between January 2002 and January 2007, a redevelopment agency is only required to count in its housing production obligations multifamily units assisted by the agency. Outside of this time frame, substantial rehabilitation of two or more single family units assisted by the agency and any multifamily units count towards the production requirement. • Replacement Housing: Effective January 1, 2002, 100% of all replacement housing units must be affordable to the same income categories as those displaced by an Agency project. Previously, only 75% of the units had to match the displaced income categories. Targeting Housing Fund Expenditures: Effective January 2003, the Law now requires that Housing Fund assistance during the 10 year Compliance Plan mirror the community's needs, both in terms of the income categories needed, and the number of family (versus senior) housing needed. (The Law provides an additional five years to meet this requirement if an agency deposited less than $2 million over the first five years of the Compliance Plan.) Contents of the Compliance Plan This Compliance Plan has been developed to accomplish the following goals: To account for the number of affordable dwelling units, either constructed or substantially rehabilitated, in the Project Area, since its adoption; To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal years 1997-98 and 2006-07 and over the duration of the Redevelopment Plan; ROSENOW SPEVACEK GROUP, INC. PAGE 2 Purpose TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN NEWHALL REDEVELOPMENT PROJECT ■ To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the Agency between fiscal years 1994-95 and 2006-07; • To project the availability of Agency revenue for funding affordable housing production; • To identify implementation policies/programs and potential sites for affordable housing development; • To establish a timeline for implementing this Compliance Plan to ensure that the requirements of Section 33413 are met during the ten- year period between fiscal years 1997-98 and 2006-07; and ■ To review the consistency of Agency affordable housing goals, objectives, and programs pursuant to the City's Housing Element. Since 1976, redevelopment agencies have been required to assure that at least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable costs to households of very low, low, or moderate income. Of this 30%, not less than 50% are required to be available at affordable costs to very low-income households. Further, for all units developed in the project area by entities other than an agency, the Law requires that at least 15% of all new or substantially rehabilitated dwelling units within the Project Area be made available at affordable costs to low or moderate income households. Of these, not less than 40% of the dwelling units are required to be available at affordable costs to very low-income households. These requirements are applicable to housing units as aggregated, and not on a project -by -project basis to each dwelling unit created or substantially rehabilitated unless so required by an agency. In 1994, the Law was amended to require redevelopment agencies to prepare a plan that demonstrated how the agency would achieve the aforementioned affordable housing mandates. Known as housing compliance plans, the Law also requires agencies to update said plans every five years. Methodology and Data Compilation This Compliance Plan takes into account all residential construction or substantial rehabilitation that has occurred within the Project Areas since their adoption in order to determine affordable housing production needs; it accounts for existing residential construction and substantial rehabilitation, and includes projections of new dwelling units that may be constructed or substantially rehabilitated during the ten-year planning period. ROSENOW SPEVACEK GROUP, INC. PAGE 3 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN NEWHALL REDEVELOPMENT PROJECT Historical construction and substantial rehabilitation statistics were provided by the Agency. It should be noted that neither the existing housing stock nor projections for future dwelling units include any units to be developed by the Agency. However, the Agency will continue to cooperate with and provide assistance and incentives to private developers in order to meet affordable housing production needs. ROSENOW SPEVACEK GROUP. INC. PAGE 4 Ton -Year Affordable Housing Compliance Plan Newhall Redevelopment Project This section describes the Agency's production needs for the planning period (1997-98 through 2006-07) and over the greater duration of the Redevelopment Plan (through July 8, 2027). Planning Period Production Needs According to data supplied by the City Planning Department, a total of two (2) dwelling units have been constructed in the Project Area during the current planning period.' Between July 2002 and the end of the planning period in June 2007, another five (5) units are assumed to be developed in the Project Area, bringing the total projected planning period housing production to seven (7) units. All seven (7) units produced during the planning period were (or are anticipated to be) developed by persons or entities other than the Agency. No units are anticipated to be substantially rehabilitated Section 33413(b) of the Law requires that not less than 15% (one (1) of the seven (7) units produced during the planning period) be affordable to low and moderate income households. The Law also requires that 40% of the required affordable units be affordable to very low income households. (In this case, no units are required for the planning period since 40% of 1 unit is less than a whole unit.) These affordable housing production requirements must be met during the planning period, which ends after fiscal year 2006-07. To satisfy the Agency's production needs, units that are either developed or substantially rehabilitated must feature 45 -year covenants2. Units may be constructed inside or outside the Project Area, but units provided outside a project area count on a 2-for-1 basis. The Agency may also purchase 55 -year affordability covenants on multifamily units. Though none of the 7 units anticipated to be constructed in the Project Area are projected to be affordable income units, the Agency does anticipate exceeding the required production of one affordable unit due to the construction of a senior housing project outside the Project Area. The ' Based on building permits issued between July 1997 and June 2002, the only two units constructed in the Project Area were 23445 San Fernando Road and 24743 Walnut Street. 3 45 years for ownership units or 55 years for rental units. Prior to January 1, 2002, affordability covenants could be as little as the duration of the redevelopment plan to count for meeting a redevelopment agency's affordable housing production requirements. ROSENOW SPEVACEK GROUP PAGE 4 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN NEWHALL REDEVELOPMENT PROJECT 200 -unit Canyon Country Senior apartments are currently under construction, and all 200 units will be affordable to moderate income households. Because the Law permits the Agency to receive 2-for-1 credit for housing produced outside the Project Area, the Agency would receive credit for producing 100 affordable units that will have 55 year affordability covenants. No Agency assistance was provided for this project. As a result of the completion of the Canyon County Senior project, the Agency will effectively exceed the required production of one (1) units by 99 units. The 99 -unit surplus would be available to meet future affordable housing production needs of the Project Area in the future (over the duration of the Redevelopment Plan). Production Needs over Duration of Redevelopment Plan The Project Area contains approximately 28 vacant lots, 5 of which could be developed during the remainder of the planning period, and 23 of which could be developed thereafter. Counting the 2 units constructed to date, a total of 30 units could be developed in the Project Area over the duration of the Redevelopment Plan. Assuming 30 units are developed over the duration of the Redevelopment Plan, 15% (or 5 units) would need to be affordable to low and moderate income households for at least 45 years, including 2 very low income units. As mentioned earlier, the Agency expects to have a surplus of low and moderate housing units produced during the planning period; these surplus units are expected to be available to meet the Agency's production needs over the entire duration of the Redevelopment Plan. The Canyon County Senior project does not provide for any very low income units, so the Agency would need to produce 2 very low income units during the duration of the Redevelopment Plan to meet required housing production needs. ROSENOW SPEVACEK GROUP, INC. PAGE 5 Ten -Year Affordable Housing Compliance Plan Newhall Redevelopment Project The Law requires that whenever dwelling units housing low and moderate income households are destroyed as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement units3 must be affordable to the same income categories (i.e. very low, low, and moderate) as those removed. The Agency receives a full credit for replacement units created inside or outside the Project Area. According to Agency staff, no additional units are expected to be destroyed or removed as a part of an Agency project during the planning period. 3 Prior to January 1, 2002,75% of all replacement units must be of the same income category as those displaced. ROSENOW SPEVACEK GROUP PAGE 6 Ten -Year Affordable Housing Compliance Plan Newhall Redevelopment Project One of the Agency's primary sources of revenues for housing program implementation is the annual 20% housing set-aside deposits. The Law requires that not less than 20% of all tax increment revenue allocated to the Agency must be used to increase, improve, and preserve the community's supply of housing available, at affordable housing cost, to persons and families of very low, low, and moderate incomes. Table 1 presents projected housing fund revenues that may be available for housing production activities over the balance of the current planning period. The forecast of revenues is based on a conservative 32% growth rate in Project Area secured assessed values. Available funds are net of current planning commitments and other housing fund expenditures. Based on these projections, the Agency could accumulate approximately $1,068,257 of housing fund revenue and fund balance by the end of the planning period. In total, the Agency may expend approximately $400,000 to fund housing programs over the balance of the planning period (through fiscal year 2006-07). Housing Fund Cash Flow Projections Newhall Redevelopment Project TABLE 1 2002-03 2003-04 2004-06 2005-06 2006-07 Total Available Cash Balance $ 225,510 $ 351,592 $ 498,757 $ 667,547 $ 460,522 $ - Revenue Tax Increment Revenue 120,082 138,165 156,791 175,975 195,735 786,747 Interest Earnings 6,000 9,000 12,000 17,000 12,000 56,000 Total 126,082 147,165 168,791 192,975 207,735 842,747 Expenditures Future Housing Projects 400,000 400,000 Total - - 400,000 - 400,000 Net Cash Flow 126,082 147,165 168,791 (207,025) 207,735 442,747 Ending Available Balance $ 351,592 $ 498,757 $ 667,547 $ 460,522 $ 668,257 Targeting of Housing Fund Expenditures As set forth by Section 33333.4 of the Law, each agency shall expend, over the duration of the compliance plan, the moneys in the Housing Fund in proportion to the community need, both in terms of the income categories and the number of senior households assisted. ROSENOW SPEVACEK GROUP PAGE 7 TEN -YEAR AFFORDABLE HOUSING COMPLIANCE PLAN NEWHALL REDEVELOPMENT PROJECT Pursuant to Section 33334.4(c), the Agency beyond the 10 -year planning period (15 obligations, since it deposited less than $2 during the first five years. Income Categories Assisted will have 5 additional years years total) to meet these million in the Housing Fund Pursuant to Section 33334.4(a) of the Law, Housing Fund expenditures must be expended in proportion to the City's fair share of the Regional Housing Need Assessment (RHNA). The number of units in each income category in the City's RHNA figures may be adjusted for units not assisted by the Agency that feature 55 or 45 year covenants. The current RHNA figures for the City cover the time period of 1998 through 2005, and indicate a need for 1,493 moderate income units, 941 low income units, and 1,256 very low income units. Based on these figures, the Agency's Housing Fund expenditures must be spread among the following categories: Moderate Income 40%, Low Income 26%, and Very Low Income 34%. The $1,078,257 of available Housing Fund revenue would need to be allocated based on these RHNA-based ratios, as summarized in Table 2 below: Housing Expenditures by Income Category TABLE 2 Newhall Redevelopment Project Income Category RHNA Units Allowable (1998 - 2005) Expenditures 1/ Moderate Income 1,493 40% $ 436,270 Low Income 941 26% 274,970 Very Low Income 1,256 34% 367,016 Total Affordable 3,690 100% $ 1,078,257 1/ Based on projected available funding for remainder of planning period Family and Senior Housing Section 33334.4(b) requires that Housing Fund expenditures for senior housing also be in proportion to the community's population of that age, according to the most recent Census. Accordingly, since 7% of the City's Census 2000 population was over the age of 65, not more than 7% of the Agency available housing fund revenues (approximately $75,000 of the $1,078,257 projected for the planning period) may be expended on senior housing projects. Currently, no Agency housing funds are anticipated to be used for senior housing during the planning period. ROSENOW SPEVACEK GROUP. INC. PAGE 8 Ten -Year Affordable Housing Compliance Plan Newhall Redevelopment Project Though the Agency anticipates exceeding its housing production needs for the planning period, additional affordable housing projects will be undertaken in order to meet long term affordable housing needs for the Project Area and the community as a whole. These projects are described below. Future Planning Period Housing Projects The Agency may, to the extent permitted by law and land use designation, inside or outside the Project Area, acquire land, sell or lease land, donate land, improve sites, price restrict units, construct or rehabilitate structures, or use any other method authorized by California Community Redevelopment Law in order to provide housing for persons and families of low or moderate income. The Agency may also provide subsides to, or for the benefit of, such persons and families or households to assist them in obtaining housing within the City. The Agency will continue its efforts to seek motivated property owners, developers and builders to partner and meet the affordable housing standards set for the Agency by California Community Redevelopment Law. The City through its General Plan and CDBG Consolidated Plan will explore programs and funding (in addition to tax increment set-aside funds) for city wide production of affordable housing. It is expected the Agency's affordable housing production requirements to build very -low and low -moderate income units will benefit from this action. The above actions will result in the building a minimum of 1 low -moderate housing unit and 2 very low housing units within the Project Area with in the implementation period. Over the Implementation Pedod, the Agency will consider in a owner and renter occupied rehabilitation program targeted in the Project Area. Potential Sites for Future Production Housing The majority of the Project Area is built out. However, the Agency will continue to work with private and nonprofit developers to find additional sites suitable for cost efficient development and rehabilitation of affordable housing. ROSENOW SPEVACEK GROUP PAGE 9 Ten -Year Affordable Housing Compliance Plan Newhall Redevelopment Project Because this Compliance Plan focuses on providing housing for lower income households who are generally the most difficult segment of the community for whom to provide housing, it is clearly consistent with the Housing Element's goal to provide housing for all economic groups within the Project Areas. Both this Compliance Plan and the Housing Element state there is a definite need to assure an adequate supply of housing for the lower income segments of the community. A major focal point of the goals, policies, and objectives of the Housing Element is to provide housing for all economic segments of the Project Areas, especially lower income families. Because the major goal of this Compliance Plan is also to provide housing for these lower income households, and the proposed plans and programs for improving the supply of affordable housing in the Project Area presented in this Compliance Plan are similar to plans and policies of the Housing Element, there is clearly consistency between the Compliance Plan and the Housing Element. ROSENOW SPEVACEK GROUP PAGE 10