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HomeMy WebLinkAbout2009-02-10 City Council Agenda Item No. 11CITY OF LADE 'jLSI1`I0 DREAM EXTREME. CITY OF LAKE ELSINORE JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL HONORABLE CHAIRMAN AND AGENCY BOARD MEMBERS FROM: ROBERT A. BRADY CITY MANAGER/EXECUTIVE DIRECTOR DATE: FEBRUARY 10, 2009 SUBJECT: RESOLUTION OF THE AGENCY ADOPTING THE REPORT TO CITY COUNCIL FOR THE AMENDED AND RESTATED REDEVELOPMENT PLANS FOR THE LAGUNA REDEVELOPMENT PROJECT AREAS NO. I, II AND III, SUBMITTING THE REPORT AND THE UPDATED PLANS TO THE CITY COUNCIL AND CONSENTING TO A JOINT PUBLIC HEARING; AND A RESOLUTION OF THE CITY COUNCIL ACKNOWLEDGING RECEIPT OF THE DOCUMENTS AND CONSENTING TO AND CALLING A JOINT PUBLIC HEARING Background The Redevelopment Agency of the City of Lake Elsinore is vested with the responsibility to carry out the functions and requirements of the California Community Redevelopment Law ("CRL") and to implement the Redevelopment Plans for each of the three Redevelopment Project Areas. The original redevelopment plan ("Original Redevelopment Plan") for Rancho Laguna Redevelopment Project No. I was adopted by Ordinance No. 607 on September 23, 1980 and, thereafter, has been amended three times: by Ordinance No. 624 adopted on July 20, 1981 to add territory ("Added Area"); by Ordinance No. 987 on November 22, 1994 to conform limits to Assembly Bill 1290 (AB1290); and by Ordinance No.1249 on February 26, 2008 to repeal the debt establishment limit as provided by Senate Bill 211 (SB211), to extend the effectiveness date and time limit to repay debt and collect tax increment as provided by Senate Bill 1045 (SB1045) (for ERAF' payments) and to make certain technical corrections. The original project area ("Original Project Area") and Added Area have separate redevelopment plan effectiveness limits, and limits to repay debt and receive tax increment. The Original Project Area and Added Area have combined tax increment and bond debt limits. Riverside County's Educational Revenue Augmentation Fund Agenda Item No. 11 Page 1 of 10 JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY REDEVELOPMENT PLAN UPDATE FEBRUARY 10, 2008 Page 2 The Redevelopment Plan for Rancho Laguna Redevelopment Project No. II was adopted by Ordinance No. 671 on July 18, 1983 and, thereafter, has been amended two times by Ordinance No. 987 on November 22, 1994 to conform time limits to AB1290 and by Ordinance No. 1249 on February 26, 2008 to repeal the debt establishment limit for affordable housing debt establishment only as provided by SB211, to extend the effectiveness date and time limit to repay debt and collect tax increment as provided by SB1045 (for ERAF payments), and to make certain technical corrections. The Redevelopment Plan for Rancho Laguna Redevelopment Project No. III was adopted by Ordinance No. 815 on September 8, 1987 and, thereafter, has been amended two times: by Ordinance No. 987 on November 22, 1994 to conform time limits to AB1290; and by Ordinance No.1249 on February 26, 2008 to repeal the debt establishment limit for affordable housing debt establishment only as provided by SB211 and to extend the effectiveness date and time limit to repay debt, collect tax increment as provided by SB1045 (for ERAF payments), and make certain technical corrections. Discussion Redevelopment Plan Update As noted above, each of the Agency's Redevelopment Plans was originally adopted in the 1980's and the format and presentation is generally outdated. Subsequent amendments have been separately documented and it is difficult to sort through these documents to determine the governing provisions of the Plans. In an effort to improve the "readability" of the Redevelopment Plans and clarify ambiguities that present challenges in implementation, the Agency desires to update the Redevelopment Plans by processing a minor amendment under the provisions of the CRL that will result in an Amended and Restated Plan for each Project Area. This action is consistent with the Agency's 2005-2009 Redevelopment and Housing Implementation Plan which included the following among its Goals and Objectives: "Prepare amendments to each of the Agency's Redevelopment Plans in order to consolidate and update the original plans with previously adopted amendments into a more "user-friendly" single document and to eliminate ambiguities and inconsistencies." Amended and Restated Redevelopment Plans On November 25, 2008, the Agency adopted a Resolution taking several actions, including acceptance of the proposed Amended and Restated Redevelopment Plans for the Lake Elsinore Rancho Laguna Redevelopment Project Areas No. I, No. II and No. III and transmittal of the Updated Plans to the Planning Commission for its report and recommendation. On December 16, 2008, the Planning Commission adopted a Agenda Item No. 11 Page 2 of 10 JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY REDEVELOPMENT PLAN UPDATE FEBRUARY 10, 2008 Page 3 Resolution making the required General Plan consistency findings and recommending Agency and City Council approval of the Updated Plans. The Amended and Restated Redevelopment Plan for each of the Agency Rancho Laguna Redevelopment Project Areas is available for public review in the office of the Agency Secretary. Each of the proposed Amended and Restated Redevelopment Plans (i) reflects changes in the CRL that impose additional requirements and restrictions not reflected in the original text, (ii) incorporates all prior amendments, (iii) updates the land use provisions, (iv) clarifies and restate the time limits and financial limits, and (v) improves the format and presentation of the text and the Project Areas Maps. Once completed, the Amended and Restated Plans will provide the foundation for the Agency to pursue its downtown revitalization, affordable housing and economic development goals and other redevelopment activities. Update Plan Provisions to Current CRL Standards There have been substantial changes in the CRL since the Redevelopment Plans were adopted between 1980 and 1987. Changes include major redevelopment reform legislation in 1993 (Assembly Bill 1290) which among other things changed certain time limits and financial limits and increased affordable housing production requirements. Some of the changes in legislation only apply to new redevelopment plan adoptions or certain types of amendments but others such as affordable housing production are applicable to all projects with few exceptions. Specific changes that affect the existing redevelopment plans include: • Section 309 Property Acquisition clarifies that the Agency does not have eminent domain authority. • Section 313 Payments to Taxing Agencies were added, which reflect the Agency's current requirement to make statutory pass-through payments as a result of the benefits from eliminating the debt establishment limit with respect to the Rancho Laguna Redevelopment Project No. 1. • Section 334 Replacement Housing tracks current requirements that 100% of the replacement housing units be available to persons in same income category or lower. • Section 336 New or Rehabilitated Units Developed within the Project Area describes the Agency's inclusionary housing requirements, which became effective in 1994. • Section 401 Permitted Land Uses references land uses allowed in the General Plan rather than describing in detail permitted land uses and has a provision that the land uses may change as the General Plan is amended from time to time. Agenda Item No. 11 Page 3 of 10 JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY REDEVELOPMENT PLAN UPDATE FEBRUARY 10, 2008 Page 4 • Section 417 Non-discrimination and Non-segregation states that discrimination is prohibited and references the applicable sections of the Government Code rather than defining the specific nondiscrimination language to be included in leases and contracts. Incorporation of Past Amendments As described above, Project Area No. I has been amended three times and Project Areas No. II and III have been amended twice. When a Redevelopment Plan is amended, the standard method is to prepare a document (the amendment) which highlights the text of the Plan to be deleted and/or added. After adopting the amendment, it is therefore necessary to reference both the amendment and the original plan when consulting the Redevelopment Plan. In the case of the Project Area No. I, a new Redevelopment Plan was adopted for the Added Area which was intended to amend the Original Redevelopment Plan. Adopting an Amended and Restated Redevelopment Plan for Project Area No. I would eliminate the two separate Redevelopment Plans and replace these Plans with an Amended and Restated Plan that would also include the third amendment. A new Amended and Restated Redevelopment Plans for Project Areas No. 11 and III would incorporate prior amendments and, therefore, would be easier to reference and avoid potential confusion from consulting the amendments when reading the Redevelopment Plans. The following table summarizes the Redevelopment Plan time and financial limits currently in effect based upon the various amendments. Redevelopment Plan Limits for Project Areas No. I, No. II, and No. III Debt Plan Term Debt Tax Bond Debt Eminent Establishment Expires Repayment Increment Domain (receive tax increment) Expires Project No. I Repealed 9/23/21 9/23/31 expired (Original Area) Adopted 9/23/80 $3 million $30 million Project No. I Repealed 7/20122 7/20/32 annually for both expired (Added Area) for both areas Adopted 7/20/81 areas Project No. II Repealed for 7/18/24 7/18/34 $15 million $120 expired Adopted 7/18/83 affordable housing annually million debt - non- housing authority expired Project No. III Repealed for 9/8/28 9/8/38 $20 million $150 expired Adopted 9/8/87 affordable housing annually million debt - Non-housing authority expired Agenda Item No. 11 Page 4 of 10 JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY REDEVELOPMENT PLAN UPDATE FEBRUARY 10, 2008 Page 5 Clarify Cumulative Tax Increment Limit The three existing Redevelopment Plans identify tax increment limits on a fiscal year basis. This annual allocation provides certainty in connection with Agency budgeting and the issuance of Agency debt by assuring annual allocations of tax increment throughout the Plan's time limit to repay debt. The proposed Amended and Restated Redevelopment Plans clarify that any shortfall within the allowable annual allocation of tax increment is carried forward to the following year or years and is available to the Agency until the period for receipt of tax increment/repayment of debt has terminated. For example, if the Agency received $2 million in tax increment in a fiscal year from Project No. I which has a $3 million annual limit, the balance of $1 million would roll- over and be applied to future fiscal years such that the Agency could receive up to $4 million during the following fiscal year, assuming the Project Area generated $4 million in tax increment revenues. The Agency cannot receive tax increment in any fiscal year that exceeds the sum of the annual limit plus any unallocated revenues from previous years. Nor can the Agency receive tax increments over the life of the applicable Redevelopment Plan in excess of the aggregate of the annual limits. Report to City Council Section 33457.1 of the CRL requires the Agency prepare a Report to the City Council that provides information, documentation and evidence to assist the City Council in its consideration of the proposed Amended and Restated Redevelopment Plans and in making the various and necessary findings associated with the adoption of the updated Plans. In compliance with the CRL requirements, the "Report To The City Council For The Proposed Fourth Amendment To The Rancho Laguna Redevelopment Plan For Project Area No. I and Third Amendments To The Rancho Laguna Redevelopment Plans For Project Areas No. 11 and 111 As Incorporated Within The Amended and Restated Redevelopment Plans For Project Areas No. 1, Il and IX (the "Report") prepared on behalf of the Agency has been distributed to the Agency Board for consideration at the regularly scheduled meeting on February 10, 2009. The Report is a public record and is available for review in the office of the Agency Secretary. Upon approval, the Agency will transmit the Report to the City Council and request that a joint public hearing be called for consideration of the Redevelopment Plan Updates and related documents. Joint Public Hearing Procedure In order to adopt the Amended and Restated Redevelopment Plans, the CRL provides that there be a joint public hearing of the City Council and the Agency to hear testimony for and against the proposed Amended and Restated Redevelopment Plans. Pursuant to Sections 33458 and 33452 of the CRL, notice of the joint public hearing will be given Agenda Item No. 11 Page 5 of 10 JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY REDEVELOPMENT PLAN UPDATE FEBRUARY 10, 2008 Page 6 by publication in a newspaper of general circulation for four weeks, and by direct mailing to all property and business owners, tenants and residents in the Project Areas. Interested persons will also be invited to a community information meeting, which is scheduled to be held on March 18, 2009. Following the joint public hearing, the final steps in the amendment process are: 1) introduction of the ordinance adopting the Amended and Restated Redevelopment Plans (tentatively scheduled for March 24, 2009) and 2) second reading of the ordinance adopting the Amended and Restated Redevelopment Plans (tentatively scheduled for April 14, 2009). CEQA Determination Based on the Initial Study prepared and distributed to the Agency and City Council and available for public review in the office of the Agency Secretary, there is no substantial evidence that the adoption of the Amended and Restated Redevelopment Plans may have a significant effect on the environment. On December 12, 2008, the Agency published a Notice of Availability and Notice of Intent to adopt an Initial Study/Negative Declaration for the Project and directly mailed the same to responsible agencies, trustee agencies and County Clerk for a 20-day review period ending on January 2, 2009. The Agency received three comment letters during the public comment period. The letters from the Riverside County Flood Control and Pala Band of Mission Indians indicated that those entities had no objection and no comments on the proposed amendments. The letter received from the Morongo Band of Mission Indians requested project specific cultural resources mitigation. Both the City of Lake Elsinore and the Agency have standard cultural mitigation measures that will be imposed at a project level basis as development applications are submitted. At the joint public hearing on the adoption of the Amended and Restated Plans, the City and Agency will hear testimony regarding the Initial Study/Negative Declaration. The Agency and City Council will consider the Initial Study/Negative Declaration, testimony, and all comments received during the public review process prior to action on the adoption of the Amended and Restated Redevelopment Plans. Notice Notice of this meeting was published in accordance with applicable requirements of the Ralph M. Brown Act. Fiscal Impact There is no fiscal impact associated with the adoption of the proposed Amended and Restated Redevelopment Plans. Agenda Item No. 11 Page 6 of 10 JOINT REPORT TO CITY COUNCIL AND REDEVELOPMENT AGENCY REDEVELOPMENT PLAN UPDATE FEBRUARY 10, 2008 Page 7 Recommendations 1) Agency adopt the attached Resolution Approving And Adopting The Agency's Report To The City Council On The Proposed Amended And Restated Redevelopment Plans For The Lake Elsinore Rancho Laguna Redevelopment Project Areas No. I, No. II & No. III, Submitting Said Report And The Proposed Amended And Restated Redevelopment Plans To The City Council Of The City Of Lake Elsinore, And Consenting To A Joint Public Hearing With The City. 2) City Council adopt the attached Resolution Acknowledging Receipt Of Documents From The Redevelopment Agency Of The City Of Lake Elsinore Pertaining To The Proposed Amended And Restated Redevelopment Plans For Rancho Laguna Redevelopment Project Areas No. 1, II, and III And Consenting To And Calling A Joint Public Hearing With The Agency. Prepared by: Barbara Leibold City Attorney/Agency Counsel Approved by: Robert A. Brady City Manager/Executive Director Agenda Item No. 11 Page 7 of 10 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACKNOWLEDGING RECEIPT OF DOCUMENTS FROM THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE PERTAINING TO THE PROPOSED AMENDED AND RESTATED REDEVELOPMENT PLANS FOR RANCHO LAGUNA REDEVELOPMENT PROJECT AREAS NO. I, II, AND III AND CONSENTING TO AND CALLING A JOINT PUBLIC HEARING WITH THE AGENCY WHEREAS, the Lake Elsinore Redevelopment Agency ("Agency") is a community redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part 1 of Division 24, commencing with Section 33000, of the Health and Safety Code of the State of California ("CRL")); and WHEREAS, the Agency is engaged in activities necessary and appropriate to carry out the Redevelopment Plans ("Redevelopment Plans") for the Lake Elsinore Rancho Laguna Redevelopment Project Areas No. I, No. 11, and No. III ("Project Areas") which were adopted by the Agency's legislative body, the City Council of the City of Lake Elsinore ("City Council"), by Ordinance No. 607 on September 23, 1980 and thereafter amended by Ordinance No. 624 on July 20, 1981, and Ordinance No. 1249 on February 26, 2008 (Project Area No. 1), by Ordinance 671 on July 18, 1983 and thereafter amended by Ordinance No. 987 on November 8, 1994 and Ordinance No. 1249 on February 26, 2008 (Project Area No. II), and by Ordinance No. 815 on September 8, 1987 and thereafter amended by Ordinance No. 987 on November 8, 1994 and Ordinance No. 1249 on February 26, 2008 (Project Area No. III); and WHEREAS, the Agency desires to amend the Redevelopment Plans for Project Areas No. I ("Fourth Amendment"), No. 11 ("Third Amendment") and No. III ("Third Amendment") collectively the "Amendments" pursuant to CRL Sections 33450-33458 to incorporate into a single Amended and Restated Redevelopment Plan for each Project Area No. 1, No. 11 and No. III all prior amendments, update the provisions of each Redevelopment Plan to reflect current CRL provisions, clarify and restate the time limits and financial limits of each Redevelopment Plan, update the land use designations for consistency with the City's General Plan as may be amended from time to time, and improve the format and presentation of the Redevelopment Plans; and WHEREAS, the Agency has prepared and completed an Amended and Restated Redevelopment Plan in draft form for each Project Area No. I, No. 11 and No. III collectively the "Amended and Restated Redevelopment Plans;" and WHEREAS, the Agency has caused to be prepared a Report to the City Council on the proposed Amended and Restated Redevelopment Plans ("Agency's Report") pursuant to CRL Sections 33352 and 33457.1; and Agenda Item No. 11 Page 8 of 10 WHEREAS, the Agency's Report has been submitted to and reviewed by the members of the governing board of the Agency; and WHEREAS, on February 10, 2009, by Resolution No. the Agency submitted the Agency's Report, together with the proposed Amended and Restated Redevelopment Plans, to the City Council and consented to and requested that the City Council call a joint public hearing of the Agency and City Council for the purpose of considering the proposed Amended and Restated Redevelopment Plans; and WHEREAS, Section 33358 of the CRL authorizes a joint public hearing on the proposed Amended and Restated Redevelopment Plan with the consent of the Agency and the City Council. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby acknowledges receipt of the proposed Amended and Restated Redevelopment Plans and the Agency's Report to the City Council prepared for the proposed Amended and Restated Redevelopment Plans pursuant to CRL Section 33352. SECTION 2. The City Council hereby consents to and, at the request of the Agency, calls a joint public hearing of the Agency and City Council on Tuesday, March 24, 2009, at 7:00 p.m., or as soon thereafter as possible, at the Cultural Center, located at 183 N. Main Street, Lake Elsinore, California, for the purpose of considering the proposed Amended and Restated Redevelopment Plans and all documents and evidence pertaining thereto. SECTION 3. The City Clerk is hereby directed to work with Agency staff and advisors in the preparation, publishing and mailing of notice of the joint public hearing, as required by Sections 33356 and 33452 of the CRL. SECTION 4. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED, AND ADOPTED this10th day of February 2009, by the following vote: ROBERT E. MAGEE, MAYOR ATTEST: CAROL COWLEY INTERIM CITY CLERK Agenda Item No. 11 Page 9 of 10 APPROVED AS TO FORM: BARBARA LEIBOLD, CITY ATTORNEY STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, CAROL COWLEY, Interim City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2009-_ was adopted by the City Council of the City of Lake Elsinore at a regular meeting held on the 10'h day of February 2009, and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: CAROL COWLEY INTERIM CITY CLERK Agenda Item No. 11 Page 10 of 10