HomeMy WebLinkAbout2009-12-22 Implementation PlanREDEVELOPMENT AGENCY OF THE
CITY OF LAKE ELSINORE
REDEVELOPMENT AND HOUSING
IMPLEMENTATION PLAN
2009 -2014
IV. HOUSING IMPLEMENTATION PLAN ................................... .............................23
A. Introduction ................................................................. .............................23
B. Goals and Objectives .................................................. .............................24
C. Program and Expenditures .......................................... .............................24
D. Implementation of Agency Housing Responsibilities ... .............................25
(1) Housing Fund Revenues .................................. .............................25
(2) Proportion of Very Low, Low and Moderate Income Housing ........ 26
(3) Projected Housing Development ...................... .............................27
(4) Estimate of Housing Production Requirements .............................28
(5) Replacement Housing ...................................... .............................32
(6) Consistency with the Housing Element ............ .............................32
ATTACHMENTS
Attachment No. 1 Map of Redevelopment Project Areas
Housing Implementation Plan 2009-
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increment generated in the Project Areas was committed to pay for bond debt service
and other financial obligations associated with specific programs and projects.
In November 2005, the Agency adopted the Lake Elsinore Redevelopment and
Housing Implementation Plan 2005 -2009 (the "2005 Implementation Plan "). While the
Agency's debt service obligations continued during the 2005 Implementation Plan
period, tax increment revenues increased and the Agency enjoyed a renewed ability to
pursue redevelopment projects and activities in furtherance of the Agency's goals and
objectives. Among these projects /activities, are the adoption of the Amended and
Restated Redevelopment Plans for each of the Agency's three Redevelopment Project
Areas, acquisition of downtown properties, and approval of a Disposition and
Development Agreement for the development of a new affordable housing project
commonly known as "Pottery Court."
The increase in Agency revenues was, however, a short-term event. The current
recession has stalled development within the Redevelopment Project Areas which,
together with a loss of funds to the State of California, has negatively impacted the
Agency's projected tax increment revenues. Current Agency projections anticipate a
significant decrease in the receipt of fiscal year 2009 -2010 net tax increment revenues
as follows:
(1) $213,400, or 6.06 %, reduction is projected in Project Area No.1;
(2) $846,000, or 18.56 %, reduction is projected for Project Area No. II, and
(3) $241,554, or 22.72 %, reduction is projected for Project Area No. III.
Despite these challenges, the Agency is expected to be able to meet all of its
financial obligations, including debt service, pass- through obligations, and contractual
commitments, including contingent liabilities. As economic conditions improve and
development activity stabilizes over the next five to ten years, the Agency is poised to
see more redevelopment activity. The tools afforded the Redevelopment Agency by
the CRL will enable the Agency to provide residents and businesses in Lake Elsinore a
high quality of life while also strengthening the economic health of the City and
providing increased housing opportunities for all economic segments of the community.
With the end of the 2009 calendar year approaching, the time has come again
for the Agency to adopt a new five -year implementation plan of programs and
expenditures. Therefore, the Agency has prepared this Redevelopment and Housing
Implementation Plan 2009 -2014 to identify the various programs and expenditures that
the Agency will pursue in furtherance of redeveloping the Project Areas (the
"Implementation Plan ").
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B. Project Area History
(1) Rancho Laguna Redevelopment Project Area No. I
The original Project Area ( "Original Project Area ") consisted of 12
non - contiguous areas distributed throughout the City and totaling approximately 286
acres. The Original Project Area was adopted after severe flooding in early 1980,
which displaced numerous residents, businesses and some local industry. Flooding
caused millions of dollars in damage to private and public property and facilities. The
resulting conditions worsened the City's abnormally high unemployment rate and
caused long term deterioration and economic maladjustment due to severe population
loss and loss of housing and employment centers caused by flooding. The original
Redevelopment Plan for Project No. 1 ( "Original Plan ") was adopted to improve,
upgrade and revitalize those areas within the City which suffered because of the direct
damages due to floods and to assist in the development of vacant portions of the City
above the flood line for moderately priced housing, which would function as
replacement housing for flood victims and housing for new City residents. In addition,
the Agency's objective in adopting the Original Plan was to generate business for local
commercial establishments, tax revenues to provide needed public facilities and
improvements and jobs for unemployed persons in the community.
A year later in 1981, the Original Plan was amended to add
approximately 1,664 acres ( "Added Area ") which surrounded two of the original
noncontiguous areas, thereby creating an amended Project Area with 11 noncontiguous
areas comprising approximately 1,950 acres. The objectives of the First Amendment to
the Original Plan to add territory was a desire to achieve additional community
objectives including promotion of industrial development and revitalization of the
downtown and surrounding area. The "Amended Project Area" (Original Project Area
plus the Added Area) includes the Central Business District (the "Downtown ") and
surrounding areas between Heald Avenue and the Lake, the area along the 1 -15
Freeway extending southwest to the Country Club Heights, and the area generally
bounded by Malaga Road, the 1 -15 Freeway, Avenue 9, Dawes Street, and Lakeshore
Drive /Mission Trail. The Amended Project Area extends northwest along the 1 -15
Freeway generally bounded by the Freeway, Pierce Street, Baker Street, and Strickland
Avenue. The Amended Project Area also includes several small non - contiguous areas
located at the western end of the Lake.
The First Amendment to the Original Plan provided the Agency with
the authority to receive tax increment. With the projected revenue, the goal was to spur
proposed affordable residential development, promote industrial development and
revitalize the Downtown. These goals were to be accomplished with major public
improvements and public utilities to assist the City in mitigating the flood hazards
particularly in underutilized industrial zoned areas. The provision of public
improvements, streetscapes, merchant mix assistance, and mitigation of flood hazards
were objectives for the Downtown. Redevelopment goals also included the promotion
Housing Implementation Plan 2009- 4
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Railroad Canyon Road on the north side of 1 -15 and the Summerhill Specific Plan area.
The commercial area suffered from deterioration and economic stagnation. To address
these blighting conditions, rehabilitation and infrastructure improvements were
proposed. To reduce the high cost to the private sector for providing infrastructure, it
was proposed that Agency assistance would be provided in the construction of
infrastructure necessary to stimulate development of the Specific Plan area.
The Redevelopment Plan for Rancho Laguna Redevelopment
Project No. II has been amended two times: by Ordinance No. 987 on November 22,
1994 to conform plan 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.
(3) Rancho Laguna Redevelopment Project Area No. III
Rancho Laguna Redevelopment Project No. III ( "Project Area No.
III ") was adopted in 1987. Project No. III was adopted to add blighted territory that
could be redeveloped with uses to improve the City's negative image and reverse the
trend of business relocation outside of the City leaving only limited basic consumer
services. Neighboring communities of Riverside and Hemet grew into regional trade
and population centers while the once self sufficient community of Lake Elsinore was
evolving into a bedroom community for Orange County. Project Area No. III includes
four non - contiguous areas including the old County Club Heights area, the residential
area referred to as the Avenues, the former Back Basin area of the Lake and a small
area bounded by Skylark, Palomar, Corydon and Union. Project Area No. III is
generally characterized by partially established residential development (the old County
Club Heights and Avenue Areas) east and west of the Downtown and the remaining
portions of the East Lake Specific Plan area (Back Basin).
The Redevelopment Plan for Rancho Laguna Redevelopment
Project No. III has been amended two times: by Ordinance No. 987 on November 22,
1994 to conform plan 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 expiration date and time
limit to repay debt, collect tax increment as provided by SB1045 for ERAF payments,
and make certain technical corrections.
Housing Implementation Plan 2009- 6
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Among the purposes of the Redevelopment Plans adopted for the City's
three Project Areas are:
■ reduce the hazard of flooding;
■ eliminate public infrastructure deficiencies;
■ provide adequate roadways;
■ provide improvements to community facilities;
■ revitalize declining commercial and industrial centers in order to
increase sales and business tax revenues and increase
employment opportunities;
■ increase, improve and preserve housing opportunities for all
economic segments of the community.
D. Goals and Objectives
(1) General Agency Goals and Objectives
The Agency remains committed to identifying underutilized,
blighted and economically challenged areas within the Project Areas and working to find
solutions to make them fiscally sound and structurally safe.
According to the 2004 Edition of Redevelopment in California,
published by Solano Press Books, blight is defined as economic or physical liabilities,
requiring redevelopment in the interest of the health, safety, and general welfare of the
people of the community and of the state.
Physical conditions that cause blight are defined as follows:
■ Buildings which are unsafe or unhealthy for persons to live
or work
■ Factors that prevent or substantially hinder the economically
viable use or capacity of buildings or lots
■ Adjacent or nearby uses that are incompatible with each
other and that prevent the economic development of those
parcels or other portions of the project area
■ The existence of subdivided lots of irregular form and shape
and inadequate size for proper usefulness and development
that are in multiple ownership
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Evaluate the benefits of re- establishing the Agency's power
of eminent domain to effectively implement the Agency's
redevelopment goals and objectives and study the possibility
of targeting geographic sub -areas for such authority.
In addition, the Agency proposes to accomplish the following goals
and objectives during the next five years:
Negotiate a development agreement with a reputable
company to bring a sales tax generating company to the city.
Status: The Agency has contacted all owners and brokers
in the city who have properties on the market to discuss
possible development.
Increase, improve and preserve the community's supply of
very low -, lower -, and low- and moderate - income housing
opportunities both for ownership and rental units.
Status: On May 26, 2009, the Agency approved a
Disposition and Development Agreement with Pottery Court
Housing Associates, LP for the development of a 111
affordable housing project. In addition to the implementation
of the DDA, the Agency desires to continue to work diligently
and in good faith to identify sites and opportunities for
development of affordable housing pursuant to the
November 2008 Memorandum of Understanding by and
between the Agency and BRIDGE Housing Corporation.
(2) Rancho Laguna Redevelopment Project Area No. I
The current goals and objectives of the Agency in Project Area No.
I essentially continue with the original goals established for Project Area No. I and
include the following:
To eliminate and prevent the spread of physical blight and
deterioration by promoting and encouraging immediate
development of parcels comprising Redevelopment Project
Area No. I, which are substantially vacant, underutilized
and /or unproductive.
Promote redevelopment in the Downtown /Old Town District
consistent with the Downtown Master Plan.
Promote redevelopment in the vicinity of Grand /Ortega.
Housing Implementation Plan 2009- 10
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include:
■ To provide needed public improvements and facilities in
Project Area No. II.
■ To provide opportunities for participation by owners and a
reasonable preference for persons engaged in business in
Project Area No. II.
■ To promote the rehabilitation of the existing housing stock,
where appropriate.
■ Promote redevelopment in the vicinity of Lakeshore and
Riverside Drive.
(4) Rancho Laguna Redevelopment Project Area No. III
The Agency goals and objectives in Project Area No. III continue to
■ To remedy, remove and prevent physical blight and
economic obsolescence in Project Area No. III.
■ To encourage the cooperation and participation of residents,
businesses, business persons, public agencies and
community organizations.
■ To eliminate substandard structures through rehabilitation or
demolition.
■ To remove physical constraints such as existing subdivision
patterns that inhibit market forces for redevelopment or
reuse.
■ To eliminate health and safety hazards.
■ Promote development and redevelopment in and around the
Diamond Stadium and pursue efforts to increase and
improve Stadium use.
■ To provide for the expansion, renovation and relocation of
businesses within Project Area No. III to enhance their
economic viability.
■ To improve inadequate public utilities, infrastructure and
facilities which impair and, in some cases, prevent
development allowed by the General Plan.
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■ Installation, construction, reconstruction, redesign, or reuse
of streets, utilities, curbs, gutters, sidewalks and other public
improvements and facilities.
■ Redevelopment of land by private enterprise or public
agencies for use in accordance with the adopted
Redevelopment Plans.
■ Financing of the construction of residential, commercial and
industrial buildings and the permanent mortgage financing of
residential, commercial and industrial buildings, as permitted
by applicable State and local laws, to increase the
residential, commercial and industrial base of the City.
■ In appropriate cases, rehabilitation of structures and
improvements or development of vacant land by present
owners, their successors and the Agency.
■ Providing affordable housing opportunities to all segments of
the community.
■ Such other actions as may be permitted by law.
(2) 2005 -2009 Five -Year Plan: Accomplishments
The Agency has been actively involved in community
redevelopment since the adoption of Project Area No. I in 1980. However, those initial
redevelopment efforts led the Agency to incur significant debt while property values
waned during much of the 1990's. The start of the new millennium led to increased
optimism that the Agency could begin to make significant progress on the Agency's
downtown revitalization, housing and economic development goals.
First, however, the Agency's primary mission has been to continue
to honor its obligation to bondholders by allocating tax increment to debt service.
Second, the Agency has continued to honor its obligations under existing tax sharing
agreements with other public entities, disposition and development agreements, owner
participation agreements and other contractual commitments.
In addition, the Agency has undertaken the following
projects /activities during the past five years in furtherance of its redevelopment goals:
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Acquisition of Downtown Properties
During the past five years, the Agency successfully acquired ten
parcels in the downtown area of Project Area No. I. These include five parcels on Main
Street for the Lake Elsinore Technology Center Project as well as five parcels at Spring
and Limited which are a key component of the Downtown Master Plan that will allow for
the connection of the Lake to the existing downtown area.
Lake Elsinore Cultural Center Seismic Retrofitting
The Agency submitted a proposal and received a Federal
Emergency Management Agency's Hazard Mitigation Grant to assist for the seismic
retrofitting of the Lake Elsinore Cultural Center, a publicly owned 1923 unreinforced
masonry building in Project Area 1. This project involves a structural retrofit with
supplemental nonstructural measures. The primary structural measures for each
building include adding reinforced concrete shear walls (with upgraded foundations),
adding collectors to transfer loads to the new shear walls, adding out of plane anchors
to tie the roof diaphragm to the walls, and installing plywood overlays to strengthen the
roof, as necessary. Non - structural measures may include parapet bracing, gable end
wall bracing, and bracing of selected nonstructural contents. The focus of this mitigation
project is life safety, with the additional objectives of reducing damages and losses in
the event of a future earthquake, preserving the functionality of the important civic
building, and preserving the structure's historic facade, which is located in City of Lake
Elsinore's historic district. At this time we are waiting for approval of the Grant by
FEMA, which may take a year. Upon approval, the project must be completed within 3
years.
Updated Agency Budget
The Agency's finance team continues to work to improve the
Agency's financial reporting and has assisted the Agency in adopting an amended
2009 -2010 budget that shows adequate reserves for all of the Agency's known and
contingent contractual obligations, SERAF and other potential liabilities. Improved
record - keeping and reporting will insure that the Agency maintains adequate reserves
prior to approving the funding of proposed new projects and activities.
(3) 2009 -2014 Five -Year Plan
The Five -Year plan of programs and expenditures incorporated as
part of this Implementation Plan of programs and expenditures is a continuation of the
Agency's previous commitments, whereby tax increment generated in the three Project
Areas will first be spent to pay for bond debt service and other financial obligations
associated with specific programs and projects.
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County Administrative fees and Payments to Taxing Agencies
Project Area I
County Administrative Fees and Payments to Taxing Agencies
Project Area II
2009 -10
2010 -11
2011 -12
2012 -13
2013 -14
SB 2557
Admin Fees
$79,000
$779000
$78,000
$80,000
$82,000
SB 2557
Admin Fees
$197929000
$1,731,000
$1,765,000
$1,813,000
$1,849,000
Pas3- Through
Agreements
Pass - Through
Agreements
$291,000
$263,000
$278,000
$2991000
$316,000
Pass - Through
Statutory
Supplemental
ERAF
$1,250,000
$0
$0
$0
$0
County Administrative Fees and Payments to Taxing Agencies
Project Area II
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2009 -10
2010 -11
2011 -12
2012 -13
2013 -14
$118,000
$117,000
$1191000
$122,000
$124,000
SB 2557
Admin Fees
$4,341,000
$4,308,000
$4,399,000
$4,477,000
$4,571,000
Pass - Through
Agreements
$0
$0
$0
$0
$0
Pass - Through
Statutory
$5,750,000
$1,435,000
$0
$0
$0
Supplemental
ERAF
Housing Implementation Plan 2009- 18
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Projected Five -Year Debt Service Schedule
Debt Service
2009 -10
2009 -11
2011 -12
2012 -13
2013 -14
Bonds
1995 Series
A (1,11,111)
$980,000
$980,000
$980,000
$980,000
$980,000
1999 Series
A(I &II)
$2,200,000
$2,285,000
$2,285,000
$2,285,000
$2,285,000
1999 Series
B(I &II)
$83,000
$0
$0
$0
$0
1999 Series
C (1,11,111)
$1,090,000
$1,090,000
$1,090,000
$1,090,000
$1,090,000
Total
$4,353,000
$4,355,000
$4,355,000
$4,355,000
$4,355,000
b. Tax Increment To Be Expended On Other Program And Project
Obligations
The Redevelopment Agency has entered
Reimbursement Agreement with City of Lake
repayment schedules. In some cases, the an
upon certain economic factors that do not hav(
Increment Revenues. In other cases, Agenc
increment generated on specific properties tha
into agreements with developers and a
Elsinore that do not have specified
fount owing each fiscal year depends
any relationship to the receipt of Tax
y payments are contingent upon tax
t have been completed in accordance
with the developer's obligations under the agreement. Each of these agreements is
briefly described below.
Wal -Mart DDA. Pursuant to a Disposition and Development Agreement with
Wal -Mart Stores, Inc. ( "Wal- Mart"), the Agency agreed to reimburse Wal -Mart
$2,200,000 of the purchase price of their property acquired within Lake Elsinore City
Center (Redevelopment Project No. II). The $2,200,000 accrues interest at 7% per
annum. Installment payments are calculated to be (1) in the amount of 100% of the
sales tax in excess of $200,000, but not to exceed $200,000 and (2) 50% of the amount
of any additional sales tax received in excess of $400,000. Since the annual payment
is based upon the amount of sales taxes paid, the Agency cannot predict with any
degree of certainty the amount that maybe due in any fiscal year. The amount paid for
Fiscal Year 2008/09 was $232,788. The Agency is assuming increases in Fiscal Years
2009/10 thru 2011/12 but given the current economy have no historical basis upon
which to base such assumptions.
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Developer shall be accrued and paid to the Master Developer on a subordinate basis to
certain "Senior Lien Obligations" upon meeting certain completion requirements and
other criteria. Currently, such payment requirements and criteria have not been met. In
addition, the DDA provides that the net Tax Increment from certain benefited properties
within the Specific Plan area is to be deposited into an "Extraordinary Infrastructure
Fund" and accrued and paid as certain improvements and completion requirements are
met. Currently, such completion and other requirement for payment have not been
meet. Net Tax Increment generated by the respective properties on or after the
2004/05 Fiscal Year is subject to accrual. The Agency recently issued a Notice of
Default under the terms of the DDA and is pursuing resolution.
In addition to the foregoing, the Agency has outstanding obligations pursuant to
the following:
■ Amber Ridge Sewer /State Loan Agreement
■ Housing Fund Reimbursement Obligations
■ City Reimbursement Obligations
■ SERAF
The Agency anticipates that it will have limited unencumbered tax
increment funds available for discretionary projects during the 2009 -2014 planning
period, after taking into account the Agency's obligations to reimburse the Housing
Fund and the City in accordance with governing documents and applicable laws.
(4) Efforts Undertaken in Furtherance of 2009 -2014
Implementation Plan Goals and Objectives.
The Agency will continue to pursue the completion and
implementation of the Downtown Master Plan, the Lake Elsinore Technology Center
and the Cultural Center seismic retrofit projects in Project Area No. I. In addition, the
Agency is desires to resolve the outstanding issues relating to the Laing -CP DDA,
continue to promote the Lake Elsinore Diamond Stadium and implement the provisions
of the Management Agreement and encourage development of the East Lake Specific
Plan, including entertainment and related land use development in the vicinity of the
Stadium that are consistent with the City's "Dream Extreme" motto and sports and
recreation themes.
F. Blight Elimination (How the Goals and Objectives, Projects and
Expenditures Will Eliminate Blight)
The adoption of AB 1290 substantially changed the definition of blight
which can now be used to qualify project areas for adoption on or after January 1,
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■ Use of the Housing Fund to increase, improve and preserve the
community's supply of housing at affordable housing cost.
B. Goals and Objectives
Among the goals and objectives of the Agency, the following will
implement the Agency's affordable housing requirements:
■ To establish a repayment plan and schedule to repay the debt to
the Housing Fund.
■ To adopt an affordable housing strategy or plan based upon
projected Housing Fund revenues over the next 5 to 10 years.
■ To prioritize Housing Fund expenditures to projects that assist the
Agency in meeting its inclusionary housing requirements under
CRL Section 33413(b).
■ To provide affordable housing opportunities to all economic
segments of the community.
■ To promote the rehabilitation and preservation of the existing
housing stock where appropriate.
■ To encourage new development of high - quality housing at
affordable prices, and with affordable financing terms, within the
Project Areas.
■ To eliminate substandard structures through rehabilitation or
demolition.
C. Program and Expenditures
The Agency plans to undertake a housing opportunity survey to identify
housing opportunity sites appropriate for affordable housing projects. This survey
together with the proposed Housing Fund repayment plan and revenue projections will
serve as the foundation for the Agency to participate in affordable housing projects and
programs in the five -year period covered by this Implementation Plan. These activities
and expenditures will contribute to establishing and preserving quality neighborhood
environments. As additional resources become available in the Housing Fund,
programs will be implemented to meet the Agency's affordable housing obligations.
In furtherance of the foregoing, on November 11, 2008, the Agency
entered into a Memorandum of Understanding with BRIDGE Housing Corporation
whereby the parties agreed to work diligently and in good faith to identify sites and
opportunities for development of affordable housing. The Agency has approved a
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In addition, as tax increment revenues ncu by the applicable)
have the opportunity to reimburse the Housing Fund
bond documents. Agency staff and financial advisors preparing
Upon approval of such
Repayment Plan for consideration by the Agency I n this regard.
Plan, the Agency may deem it appropriate to dinlfyoithePart
amount III
the
of theimplementation
and
Plan. This plan may change, however, depen g n
other contingent obligations. As a result, the Agency can not commit 100% to any plan
at this time.
(2) Proportion of Very Low, Low and Moderate Income Housing
It is the policy of the Agency that the expenditures of the Housing
Fund are made in relative proportion to thehousing this purposes hous low
needs s
moderate Income households in the community. For
in the
based on the City's share of the regional housing the The
very lowldlow,fimoderate
City's Housing Element (July 2002) is distributed among
and above - moderate income groups as follows:
Very low 978 26
Low 639 17
Moderate 829 22
Above- 1317 35
Moderate
3,763 100
While the Housing Element needs assessment reflects a significant
need for housing to serve above-moderate exclusively households, housing available to very low,
Moderate Income funds will be expended e Y o
low and moderate income households at an affordable housing cost.
The City of Lake Elsinore is in the process of updating its Housing
Element which will incorporate the City's Regional Housing Needs Allocation published
by SCAG in 2007. This new data continues to reflect a significant need for housing to
serve above - moderate households (over 40% of the community's housing need). The
remaining housing need is distributed among very low, low and moderate income
resulting in the following proportionality requirement as to the Agency's Housing Fund
expenditures:
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with P rojected development needs and has incorporate updated housing development
projections in the Implementation Plan.
(4) Estimate of Housing Production Requirements
a. Housing Units to be Developed or Purchased
The CRL provides that "Each redeveloopmeant agency shall,
as part of the implementation plabdiv sionf oryeachSection
project9area. Thepplan shall be
with the requirements of this su
consistent with, and may be included within, the community's ed at leas every five years I in
plan shall be reviewed and, if necessary, amen
conjunction with the housing element cycle. Th e plan shall ensure that the
requirements of this subdivision are met every 10 yea
b. Housing Units Required to be Developed
requires the Agency to adopt a plan to
Section 33413(b) (4 ) re q 1 and
comply with the inclusionary housing requirements are:
Sections 33413(b)(1)
(2). The housing production requirements of the
At least 30% of all new or rehabilitated dwelling units cost
low or
developed by an agency must be o available 50 %affordable that 30% mugst be forovery low
moderate income households and not less than
income households. (CRL Section 33413(b)(1).)
At least 15% of all new or rehabilitated dwelling units
developed within a redevelopment project area by public or private entities or persons
other than the agency must be available a0 affordable housing cost
must be for very low moderate
income households and not less than 40%
households. (CRL Section 33413(b)(2).)
C. Explanation of Current Housing Prod uction /Inclusionary
Housing Obligation
The Agency has t ty have developed any
30% affordable the
housing
Project Areas. Therefore, the Agency d oes no
production obligation.
"Substantial rehabilitation" is defined as rehabilitation which ing land
None
equals 25% of the after rehabilitation value of dwelling,
s gce the opment Plans
of the housing units rehabilitated in the Project Areas
were adopted are known to meet this threshold; therefore, there uctino production
gat on,
obligation associated with rehabilitation
o new housing units in the Project Areas.
ln tf activity. fi
consequently, is based on the construction
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assembly, disposition and development of approximately 4 eand ISumnee
boundaries of Project Area No. I and generally b ounded by Pottery Street
Avenue between the outflow channel of Lake Elsinore loan from the Agency's
Low and
Agency has committed to assist the project with
Moderate Income Housing Fund in an amount not to exceed n ,06 households project n
will include 111 units restricted to occupancy by very
of the
affordable rent which will qualify as inclusionary units wis satisfying lude 2 manager
Agency's outstanding inclusionary obligation. The project
units, and community space which will provide a study room, a music practice room, a
great room for parties, a full kitchen, a pool, BBQs and one tot lot.
Based on future housing development ncrease as follows:ns, the
Agency's inclusionary housing obligations areanticipated
2009 -2014
Project Area No. 1
23 units (9 Very Low; 14 Very Low /Low /Mod)
Project Area No. II
9 units (4 Very Low; 5 Very Low /Low /Mod)
Project Area No. III
16 units (6 Very Low; 10 Very Low /Low /Mod)
Total Inclusionary
48 units
2015 -2020
Project Area No. 1
10 units (4 Very Low; 6 Very Low /Low /Mod)
Project Area No II
9 units (4 Very Low; 5 Very Low /Low /Mod)
Project Area No. III
16 units (6 Very Low; 10 Very Low /Low /Mod)
Total Inclusionary
35 units
2021 - build -out
Project Area No. 1 30 units (12 Very Low; 18 Very Low /Low /Mod)
Project Area No. II 135 units (54 Very Low; 81 Very Low /Low /Mod)
Project Area No. III 285 units (114 Very Low; 171 Very Low /Low /Mod)
Total Inclusionary 450 units
Given the projection of new housing development in the Project
Areas and the consequential inclusionary housing obligations triggered by that
development, the City of Lake Elsinore has, as a matter of policy, required residential
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percentage of units with affordable rents. The accomplishment of this program will
provide a significant contribution to the Agency's affordable housing obligation.
Land Writedown: The Agency will implement a program to
provide a writedown of land costs, which would help the Agency meet its production
obligations. The degree to which the obligations will be met by this program will depend
on surplus land availability; current and future land values; and the dollar amount
available in the Housing Fund.
(5) Replacement Housing
CRL Section 33490(a)(3) requires that if the Implementation Plan
contains a project that will result in the destruction or removal of dwelling units that will
have to be replaced pursuant to subdivision (a) of CRL Section 33413, the
Implementation Plan shall identify proposed locations suitable for the required
replacement dwelling units.
The projects proposed and described in this Implementation Plan
will not cause the destruction or removal of dwelling units. Moreover, the Agency has
not previously incurred any replacement housing obligations. Therefore, no
replacement housing sites need to be identified. In the event projects are proposed in
the future that will cause the destruction or removal of existing housing occupied by low
or moderate income persons, the Agency will comply with its replacement housing
obligations pursuant to CRL Sections 33413(a) and 33415. With the Agency's approval
or a resolution committing low and moderate income housing funds for the development
of an affordable housing project known as Pottery Court an addition 113 units of
multifamily affordable housing will be developed.
(6) Consistency with the Housing Element
The basic policy direction for the Housing Implementation Plan is
derived from the Housing Element. The Housing Implementation Plan must be
consistent with the City's Housing Element. According to the California Department of
Housing and Community Development ( "HCD "), consistency means that the two plans
should not propose different activities using the same agency resources, or different
uses for the same funds, or conflicting schedules or objectives.
Housing element law, according to HCD, requires the element to
"set forth a five -year schedule of actions the local government is undertaking or intends
to undertake to implement the policies and achieve the goals and objectives of the
housing element through ... the utilization of moneys in a (redevelopment agency's)
Low and Moderate Income Housing Fund" (Government Code Section 65583[c]). This
Implementation Plan meets and exceeds the Housing Element Law requirements.
Housing Implementation Plan 2009- 32
2014(122109).doc
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The Agency previously estimated its housing production
requirements based upon the best information available during preparation of the 1999-
2004 Implementation Plan. Since adoption of the 1999 -2004 Implementation Plan, the
Agency has continued to evaluate and inventory residential development activity in
each Project Area. As a result of these efforts, the Agency has determined its housing
prod uction /inclusionary housing requirements as follows:
Redevelopment Project Area No. I was first adopted in
September 1980. Since that time, 1,019 housing units have been constructed. The
affordable housing production obligation is as follows:
Very Low Income = 62
Very Low, Low or Moderate Income = 91
153
In Project Area No. II, 1,474 housing units have been
constructed since the Plan was adopted in July 1983. The affordable housing
production obligation is as follows:
Very Low Income = 89
Very Low, Low or Moderate Income = 133
= 222
Inclusionary Units as of 12/31/2009 78
144
In Project Area No. III, 398 housing units have been
constructed since the Plan was adopted in 1987. The affordable housing production
obligation is as follows:
Very Low Income
= 24
Very Low, Low or Moderate Income = 36
.E
Since the Project Areas were adopted, 78 housing units with
long -term affordability restrictions within the meaning of the Law have been provided
within the Project Area No. II. The remaining 357 inclusionary unit obligation will be
satisfied pursuant to the requirements of the City's and Agency's agreements with
developers of residential projects, which include a housing prod uction /inclusionary
housing requirement and through the implementation of rehabilitation programs,
activities and other opportunities as described below. It is the Agency's priority that
Housing Fund expenditures be made to satisfy these requirements.
In May 2009, the Agency entered into a Disposition and
Development Agreement with Pottery Court Housing Associates, LP providing for the
Housing Implementation Plan 2009- 29
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Very low = 1,311 units = 40%
Low = 921 units = 28%
Moderate = 1,041 units = 32%
In addition, moneys in the Housing Fund will be expended to assist
housing available to all persons regardless of age in at least the same proportion as the
number of low- income households with a member under age 65 years bears to the total
number of low- income households within the City. The 2000 Census reports that the
total number of low- income households within low-income City is
with admembeeunde0r
Census reports that the total n umber of ow
age 65 years is 1,034.
(3) Projected Housing Development
Housing development projections made at the time of the adoption
of this Implementation Plan are as follows:
2009 -2014
Project Area No. 1 150
Project Area No. Il 60
Project Area No. III 106
Total 316
2015 -2020
Project Area No. 1 65
Project Area No. II 60
Proiect Area No. III 106
Total 231
2021 - build -out
Project Area No. 1 200
Project Area No. II 900
Project Area No. 111 1900
Total 3000
The Agency recognizes that actual rate of housing development
has significantly slowed and has made the projections set forth above quite difficult to
achieve. As a result, the Agency is analyzing actual development activity in connection
Housing Implementation Plan 2009- 27
2014(122109).doc
resolution committing low and moderate income housing funds to BRIDGE for the
development of an affordable housing project known as Pottery Court. Pottery Court is
a proposed multifamily affordable housing development consisting of approximately 113
units. The project secured a $1 million grant from the U.S. Department of Housing and
Urban Development's Hope VI Main Street grant program in 2008. As currently
proposed, the project plan consists of approximately 111 Very Low and 2 Manager units
of family housing on approximately 4.29 acres of land in the Agency's Project Area 1,
which has a projected inclusionary requirement of approximately 75 very low- income
units and 114 units at low and moderate income by 2009. Pottery Court's 111
affordable units exceed the project's 15% inclusionary requirement (17 units), and will
reduce the Agency's outstanding inclusionary obligations by 94 very-low income units.
In addition, Pottery Court will satisfy the replacement housing requirement that will be
triggered by the removal of ten (10) existing rental units. Consequently, the
development will make substantial progress toward satisfying the Agency's affordable
housing requirements.
D. Implementation of Agency Housing Responsibilities
This section of the Implementation Plan addresses the Agency's housing
responsibilities; it specifically provides information required by CRL Sections 33334.2,
33334.4, 33334.6 and 33413 for the provision of low and moderate income housing and
related considerations.
(1) Housing Fund Revenues
The Agency has set aside twenty percent (20 %) of its gross tax
increment into its Housing Fund since fiscal year 1995 -96. However, due to
commitments for bonded indebtedness, the Housing Fund has only recently begun to
accumulate significant unallocated tax increment.
The estimate of Housing Fund deposits for the each fiscal year of
the five -year planning period are set forth below:
2010 -11
$3,896,000
2011 -12
$3,979,000
2012 -13
061,000
2013 -14
$4,145,000
At the conclusion of the 2009 -2010 fiscal year, the Housing Fund is
anticipated to have available funds of approximately $16 million. In addition, the
Housing Fund is projected to accrue currently unallocated tax increment at a rate of
approximately $4 million each year during the five -year planning period.
Housing Implementation Plan 2009- 25
2014(122109).doc
2009 -10
Housing
$3,965,000
Fund
(20% set aside)
2010 -11
$3,896,000
2011 -12
$3,979,000
2012 -13
061,000
2013 -14
$4,145,000
At the conclusion of the 2009 -2010 fiscal year, the Housing Fund is
anticipated to have available funds of approximately $16 million. In addition, the
Housing Fund is projected to accrue currently unallocated tax increment at a rate of
approximately $4 million each year during the five -year planning period.
Housing Implementation Plan 2009- 25
2014(122109).doc
1994. Given that each of the Agency's Project Areas was adopted prior to January 1,
1994, AB 1290's new blight definition did not impact the Agency. Pre -AB 1290
conditions of blight are described in detail within the Agency's Reports to the City
Council prepared for each of the Redevelopment Plans.
Implementation of the Agency sponsored projects and programs together
with private development activity have improved conditions in the Project Areas;
however, significant blighting conditions remain. It is the Agency's intent to focus on the
remedy of those remaining blight conditions through the continued implementation of
the Redevelopment Plans and this Implementation Plan, encouragement of private
development activities and the provision of new and rehabilitated housing.
The goals, objectives, programs and expenditures contained in this
Implementation Plan contribute to the elimination of the following blight conditions:
■ Factors that prevent or substantially hinder the economically viable
use or capacity of buildings or lots.
■ 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 Areas.
■ The existence of subdivided lots of irregular form and shape and
inadequate size for proper usefulness and development that are in
multiple ownership.
■ Depreciated or stagnant property values or impaired investments.
■ A lack of necessary commercial facilities that are normally found in
neighborhoods.
IV. HOUSING IMPLEMENTATION PLAN
A. Introduction
The Housing Implementation Plan addresses the following:
How the goals, objectives, programs and expenditures of the
Housing Implementation Plan will implement the affordable housing
requirements of the CRL.
Expenditure of the Housing Fund to assist low and very low income
households in proportion to their needs.
Adoption of a plan to achieve compliance with the affordable
housing prod uction /inclusionary housing obligations.
Housing Implementation Plan 2009- 23
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Oak Grove Equities. Pursuant to an Owner Participation Agreement with Oak
Grove Equities, the developer of Lake Elsinore City Center (located within
Redevelopment Project No. II), the Agency agreed to reimburse Oak Grove Equities
$1,800,000 for certain public improvements. The $1,800,000 accrues interest at 7%
per annum. Annual installments are based upon the amount of sales tax generated by
the shopping center (excluding Wal -Mart). Installment payments are calculated to be
(1) in the amount of 100% of the sales tax in excess of $200,000, but not to exceed
$200,000 and (2) 50% of the amount of any additional sales tax received in excess of
$400,000. The amount paid for Fiscal Year 2008/09 was $68,127. The Agency is
assuming increases in Fiscal Years 2009/10 thru 2011/12 but given the current
economy has no historical basis upon which to base such assumptions.
NG /Chelsea Lake Elsinore Limited Partnership. The Agency entered into an
agreement with NG /Chelsea Lake Elsinore Limited Partnership pertaining to the
development of a factory retail outlet. The factory outlet center is located in Project Area
No. I. Pursuant to the agreement, the Agency is required to pay the annual special
assessment levied by Assessment District 86 -1. The bonds issued by Assessment
District 86 -1 mature in the year 2015 and the annual special assessment is
approximately $107,000. Tax Increment is not specifically pledged towards payment of
the annual special assessment.
City LERA Reimbursement Agreement. The Lake Elsinore Recreation Authority
( "LERA ") entered into a lease agreement with the City to refinance certain pre- existing
debt related to Agency projects, specifically the Lake Elsinore Diamond Stadium. The
Agency found the project expenditures benefited all three Redevelopment Project
Areas and entered into reimbursement agreement with the City. Historically, Annual
Debt Service on the variable rate debt has averaged approximately 3% to 3.5 %. During
the last year, the interest rate has been below 0.25 %. The Federal Reserve Board has
announced its intention to phase out programs supporting lower rates as the economy
recovers and the threat of inflation reoccurs. This will indirectly affect the Interest Rates
on the LERA Bonds. The interest rate assumptions used in the Amended Budget are
1% for Fiscal Year 2009/10; 2% for Fiscal Year 2010/11; and 3% for Fiscal Year
2011/2012.
Laing -CP DDA. The Agency has entered into a DDA for the 3,000 acre East
Lake Specific Plan area with a "Master Developer" and a "Developer." The Specific
Plan Area is within Project Areas Nos. II and III. The DDA provides that the net Tax
Increment generated by property owned by the Developer (approximately 706 acres)
shall be accrued and paid to the Developer on a subordinate basis to certain "Senior
Lien Obligations" upon meeting certain completion requirements and other criteria.
Currently, such payment requirements and criteria have not been met. The property
owned by the Developer was recently foreclosed on by the primary lender. The DDA
provides that the net Tax Increment generated by property owned by the Master
Housing Implementation Plan 2009- 21
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County Administrative Fees and Payments to Taxing Agencies
Project Area III
Anticipated Expenditures from Net Tax Increment Revenues
Anticipated expenditures from the Net Tax Increment Revenues for
bond debt and other program and project obligations to be made during the 2009 -2014
planning period are summarized below:
a. Bond Debt The Agency currently has a bond debt service
coverage ratio of 2.27 to 1 in Project Area No. I; 2.64 to 1 in Project Area No. 2, and
5.57 to 1 in Project Area No. 3. There are no current plans to issue additional bonded
debt, but the Agency continues to monitor the market for potential refunding
opportunities. The Agency recently authorized and anticipates issuing refunding bonds
to refinance its1999 Series C bonds which will lower debt service payments without
extending the term of the debt. The amount of the savings is unknown at this time and
is not reflected in the projected expenditures reported below.
Tax increment to be expended on the debt service for bonds issued for
Project Area Nos. I, II and III are summarized in the following Table:
Housing Implementation Plan 2009- 19
2014(122109).doc
2009 -10
2010 -11
2011 -12
2012 -13
2013 -14
SB 2557
$35,000
$34,000
$35,000
$35,000
$36,000
Admin Fees
Pass - Through
$1,533,000
$1,514,000
$1,551,000
$1,554,000
$1,591,000
Agreements
Pass - Through
$0
$0
$0
$0
$0
Statutory
Supplemental
$0
$0
$0
$0
$0
ERAF
Anticipated Expenditures from Net Tax Increment Revenues
Anticipated expenditures from the Net Tax Increment Revenues for
bond debt and other program and project obligations to be made during the 2009 -2014
planning period are summarized below:
a. Bond Debt The Agency currently has a bond debt service
coverage ratio of 2.27 to 1 in Project Area No. I; 2.64 to 1 in Project Area No. 2, and
5.57 to 1 in Project Area No. 3. There are no current plans to issue additional bonded
debt, but the Agency continues to monitor the market for potential refunding
opportunities. The Agency recently authorized and anticipates issuing refunding bonds
to refinance its1999 Series C bonds which will lower debt service payments without
extending the term of the debt. The amount of the savings is unknown at this time and
is not reflected in the projected expenditures reported below.
Tax increment to be expended on the debt service for bonds issued for
Project Area Nos. I, II and III are summarized in the following Table:
Housing Implementation Plan 2009- 19
2014(122109).doc
Gross Tax Increment Projections
Gross tax increment revenues allocated to the Agency during the
2009 -2014 planning period are estimated as follows:
Net Tax Increment Projections
From gross tax increment for all Project Areas, the Agency must
set aside twenty percent (20 %) to its Housing Fund each year. The estimate of
Housing Fund deposits for the each fiscal year of the five -year planning period are set
forth in Section IV.D. below.
Also deducted from gross tax increment for all Project Areas are
SIB 2557 administrative fees and payments to other taxing agencies pursuant to tax
sharing agreements entered into when the Redevelopment Plans were adopted.
Commencing in 2008 -09, the Agency has paid a statutory pass- through to other taxing
entities from increment received in Project Area No. I resulting from the City Council's
adoption of Ordinance No.1249 eliminating the time limit to incur debt in Project Area
No. I. The Agency has not taken any action that requires statutory pass payments to
affected taxing entities in Project Area No. II or Project Area No. III.
For each fiscal year that falls within the life of this 2009 -2014 planning period, the
aggregate of the administrative expenses is estimated as follows:
Housing Implementation Plan 2009- 17
2014(122109).doc
2009 -10
2010 -11
2011 -12
2012 -13
2013 -14
Project No. 1
$6,717,000
$6,487,000
$6,618,000
$6,750,000
$6,885,000
Project No. II
$10,135,000
$10,058,000
$10,271,000
$10,476,000
$10,686,000
Project No. III
$2,973,000
$2,935,000
$3,007,000
$3,079,000
$3,153,000
Net Tax Increment Projections
From gross tax increment for all Project Areas, the Agency must
set aside twenty percent (20 %) to its Housing Fund each year. The estimate of
Housing Fund deposits for the each fiscal year of the five -year planning period are set
forth in Section IV.D. below.
Also deducted from gross tax increment for all Project Areas are
SIB 2557 administrative fees and payments to other taxing agencies pursuant to tax
sharing agreements entered into when the Redevelopment Plans were adopted.
Commencing in 2008 -09, the Agency has paid a statutory pass- through to other taxing
entities from increment received in Project Area No. I resulting from the City Council's
adoption of Ordinance No.1249 eliminating the time limit to incur debt in Project Area
No. I. The Agency has not taken any action that requires statutory pass payments to
affected taxing entities in Project Area No. II or Project Area No. III.
For each fiscal year that falls within the life of this 2009 -2014 planning period, the
aggregate of the administrative expenses is estimated as follows:
Housing Implementation Plan 2009- 17
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Stadium Management Agreement
The Agency entered into a new Stadium License, Lease And
Management Agreement in 2007 with the Diamond Stadium Group LLC ( "DSG ") which
provides for improvement and promotion of the Lake Elsinore Diamond Stadium and
associated financial responsibilities by DSG. The Agreement is anticipated to reduce
the significant financial burden on the Agency associated with the Stadium by
approximately $1,600,000 through fiscal 2010 -11, and approximately $600,000 per year
thereafter.
Downtown Master Plan
The Agency sponsored the creation of a Downtown Master Plan
document to create a readily actuated and incremental comprehensive urban design
vision for Project Area I's downtown —the area generally located South of 1- 15, and
North of the lakefront between Riley Street and Chestnut Street. The purpose of the
Downtown Master Plan is to 1) Establish the design vision for the area; 2) Provide land
development regulations and a regulatory framework to guide future public and private
development in the area; 3) Encourage the development of public space and
community art; 4) Foster opportunities for historic preservation and redevelopment; 5)
Develop evidence -based economic strategies and a comprehensive implementation
plan necessary to support the desired vision; and 6) Establish and recognize an
innovative and distinct Main Street ambiance and experience.
Lake Elsinore Technology Center
The Agency received a $2.67 million grant from the U.S. Economic
and Development Administration to assist in the development of the Lake Elsinore
Technology Center (LETC) in Project Area 1. As proposed, the LETC consists of a
13,200 square -foot business incubator that will provide ten (10) to fifteen (15)
businesses with professional office space at below market -rate rents, with amenities
that include a central reception area, conference rooms, lunch room, a computer
training room, and related office equipment, business plan and marketing plan training,
networking opportunities, interns from local technology -based school programs, and
professional services, such as legal, accounting, and business advice. The business
incubator will provide the necessary tools to assist new, relocating, and expanding
businesses in their efforts to succeed. Furthermore, existing businesses in the area can
remain at their current location and enroll in the incubator's business affiliate program to
take advantage of the training, services, and networking opportunities offered through
the incubator. Additionally, the LETC assists existing retail businesses in the downtown
by providing a more dedicated daytime consumer base to support their establishments.
At this time the contract is being reviewed and a schedule of performances is being
established.
Housing Implementation Plan 2009- 155
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■ To eliminate conditions of economic dislocation such as
incompatible land uses, fragmented ownership patterns, and
existing subdivision patterns which impair reinvestment
capabilities, inhibit market forces and result in underutilized
or improperly utilized properties and restrict redevelopment
or reuses by private enterprises acting alone.
■ To promote land assembly or parcel consolidation into sites
suitable to accommodate contemporary development trends,
current market demands and efficient site planning.
• To promote the rehabilitation and preservation of the
existing housing stock where appropriate.
■ Promote redevelopment of the Country Club Heights area.
E. Programs and Expenditures
(1) Policy Overview
The Agency supports projects that: (a) encourage development
and revitalization of commercial and industrial activities in the Project Areas, (b)
enhance services and employment opportunities to Project Area residents, and (c) that
generate increased property values and sales tax revenues. More specifically, the
Agency supports the following types of projects:
■ Projects that maximize the efficiency and compatibility of
land uses within the Project Areas.
■ Projects that generate employment opportunities and
expand the community's economic base.
■ Projects that provide public improvements and facilities
necessary to eliminate blighted conditions and stimulate
private development activities.
■ Projects that increase, improve and preserve affordable
housing opportunities.
The expenditures of the Agency are guided by the following priority
activities:
■ Satisfaction of debt service obligations.
Housing Implementation Plan 2009- 13
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■ To encourage and foster the economic revitalization of
Project Area No. I.
■ To adopt and implement a "Downtown Master Plan ".
■ To encourage the rehabilitation and growth of the Downtown
area.
■ Design and develop the Lake Elsinore Technology Business
Incubator with a Grant from EDA.
■ To encourage new construction and rehabilitation of
commercial and industrial uses, which in turn will provide
short -term and long -term employment opportunities for local
residents.
■ To encourage new development in the Project Area of high -
quality housing at affordable prices, and with affordable
financing terms, including affordable senior housing.
■ To promote the rehabilitation and preservation of the
existing housing stock where appropriate.
(3) Rancho Laguna Redevelopment Project Area No. II
The Agency continues to support the following goals and objectives
in Project Area No. II:
■ To eliminate and prevent the spread of physical and
economic blight and deterioration by promoting and
encouraging the revitalization or redevelopment of
deteriorating or underutilized areas within Project Area No.
II.
■ To create an aesthetic, healthful, and functional
environment.
■ To promote productive and efficient use of land to improve
and increase the tax base.
■ To encourage new residential, industrial, and commercial
development within Project Area No. II to provide additional
housing, employment and service opportunities, and
broaden the tax base.
Housing Implementation Plan 2009 -
2014(122109).doc
redevelopment are:
Economic conditions that cause blight are defined as follows:
■ Depreciated or stagnant property values or impaired
investments
■ Abnormally high business vacancies, abnormally low lease
rates, high turnover rates
■ Abandoned buildings, or excessive vacant lots
■ A lack of necessary commercial facilities that are normally
found in neighborhoods
■ Residential overcrowding
■ An excess of bars, liquor stores, or other businesses that
cater, exclusively to adults that has led to problems of public
safety and welfare
■ A high crime rate that constitutes a serious threat to the
public safety and welfare
Accordingly, the Agency's five -year goals and objectives for
• Identify locations within the Project Areas with the greatest
opportunity for economic development and encourage the
development and revitalization of commercial and industrial
projects /programs that will expand the area's economic base
and provide new job opportunities for all segments of the
community.
■ Identify and prioritize necessary public works improvements
or facilities, which will promote the development of land
uses, as appropriate, and eliminate unhealthy and
dangerous conditions.
■ Encourage private investment to improve or redevelop
property in the Project Areas as well as surrounding areas
as identified in the Buxton Study sponsored by the Agency in
furtherance of this objective.
■ Explore cooperative redevelopment opportunities to partner
with County of Riverside to make improvements to the
lakeshore.
Housing Implementation Plan 2009- 9
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(4) Summary of Redevelopment Plan Limits for All Project Areas
C. Purpose of the Redevelopment Plans
The 1980 flood seriously impacted the City causing businesses and
residents to suffer property loss and general economic crisis. Establishment of the
Original Project Area No. I was the Agency's first step towards providing an expanded
economic base and opportunity for additional housing for the community; a goal that
was carried forward by the Agency in establishing the additional Project Areas.
2The limits on the allocation of tax increment applies to tax increment received and deposited by the Agency and is net of pass -
through agreements, statutory tax sharing payments to taxing entities, County administrative charges and ERAF payments. The
maximum amount of tax increment to be allocated to the Agency pursuant to each Plan shall not exceed the specified limit during
any one fiscal tax year; provided, however, that any shortfall within the allowable annual allocation of tax increment shall be carried
forward to the following year or years and shall be available to the Agency until the period for receipt of tax increment/repayment of
debt has terminated. The Agency cannot receive tax increment in any fiscal year that exceeds the sum of the annual limit plus any
unallocated revenues that have rolled over from previous years.
3 See 2, above.
See 2, above.
Housing Implementation Plan 2009- 7
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Debt
Repayment
(receive tax
Plan Term
increment)
Debt
Tax
Eminent
Establishment
Expires
Expires
Increment
Bond Debt
Domain
Project No. I
Repealed
9/23/21
9/23/31
expired
(Original Area)
Adopted 9/23/80
$3 million
$30 million
net
annually
for both
areas
Project No. I
Repealed
7/20/22
7/20/32
expired
for both
(Added Area)
areas
Adopted 7/20/81
Project No. II
Repealed for
7/18/24
7/18/34
$15 million
$120
expired
affordable housing
net
million
Adopted 7/18/83
debt — non - housing
annually3
authority expired
Project No. III
Repealed for
9/8/28
9/8/38
$20 million
$150
expired
affordable housing
net
million
Adopted 9/8/87
debt —
annually4
Non - housing
authority expired
C. Purpose of the Redevelopment Plans
The 1980 flood seriously impacted the City causing businesses and
residents to suffer property loss and general economic crisis. Establishment of the
Original Project Area No. I was the Agency's first step towards providing an expanded
economic base and opportunity for additional housing for the community; a goal that
was carried forward by the Agency in establishing the additional Project Areas.
2The limits on the allocation of tax increment applies to tax increment received and deposited by the Agency and is net of pass -
through agreements, statutory tax sharing payments to taxing entities, County administrative charges and ERAF payments. The
maximum amount of tax increment to be allocated to the Agency pursuant to each Plan shall not exceed the specified limit during
any one fiscal tax year; provided, however, that any shortfall within the allowable annual allocation of tax increment shall be carried
forward to the following year or years and shall be available to the Agency until the period for receipt of tax increment/repayment of
debt has terminated. The Agency cannot receive tax increment in any fiscal year that exceeds the sum of the annual limit plus any
unallocated revenues that have rolled over from previous years.
3 See 2, above.
See 2, above.
Housing Implementation Plan 2009- 7
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of infill residential development in the areas surrounding the Downtown and extending
the Downtown to provide commercial development along Graham Avenue and
Lakeshore Drive.
In sum, the Original Plan has been amended three times: by
Ordinance No. 624 adopted on July 20, 1981 to add the Added Area; by Ordinance No.
987 on November 22, 1994 to conform plan 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 expiration date and time limit to
repay debt and collect tax increment as provided by Senate Bill 1045 (SB1045) for
ERAF1 payments and to make certain technical corrections. The 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.
(2) Rancho Laguna Redevelopment Project Area No. II
Rancho Laguna Redevelopment Project No. II ( "Project Area No.
II ") was adopted in 1983. Project Area No. II includes three non - contiguous areas
divided into four subareas for planning purposes. Subarea A includes the residential
and commercial areas at the northwest end of the Lake in the vicinity of Lakeshore
Drive, Machado Street and Grand Avenue. This area includes older residential and
commercial uses including some recreation areas along the Lakeshore. Subarea B
includes what was the old Back Basin for the Lake and is largely undeveloped. A
portion of the area is within the East Lake Specific Plan and has been developed with
approximately 700 residential units but a large portion remains undeveloped. Subarea
C includes the commercial area along Railroad Canyon Road on the north side of 1 -15
and the Summerhill Specific Plan area. The last subarea, Subarea D is developed with
single - family residential as part of the Tuscany Hill Specific Plan development.
The Project Area was adopted to extend the Agency's efforts to
improve the physical and economic conditions within the areas included in Project Area
No. II that were impacted from severe flooding during the early 1980's. The flooding
destroyed property and resulted in a decline in population and increased
unemployment. These impacts were notable in Subarea A, which included residential
and commercial properties at the northwest end of the Lake. Rehabilitation of older
housing and commercial structures, combined with the construction of flood and
drainage improvements were proposed for this area. Subarea B which includes the old
Back Basin for the Lake was also subject to flooding and almost entirely without
infrastructure to accommodate development. Subarea B required infrastructure and
flood control improvements including extensive grading to raise the area above the
flood plain. Also within this area, infrastructure improvements were needed to develop
industrial uses along Corydon Street. Subarea C includes the commercial area along
Riverside County's Educational Revenue Augmentation Fund
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II. PURPOSE OF THIS IMPLEMENTATION PLAN
This Implementation Plan is a policy document used to assist the Agency in
making decisions about individual projects over the term of the Redevelopment Plans.
This Implementation Plan provides a "big picture" perspective, which is intended to
guide the Agency in its efforts to satisfy its mission and obtain its goals. In addition, this
Implementation Plan can be used as a communication tool to help educate the
community about programs and projects implemented by the Agency.
The history, goals, objectives, and five -year programs for each of the Project
Areas are described below. This Implementation Plan also summarizes information
concerning the blighting conditions in the Project Areas and elimination of these
conditions through implementation of Agency goals, objectives and programs. Part III
of this Implementation Plan contains the affordable housing component, which includes
the following information:
■ Status of the Agency's Low and Moderate Income Housing Fund
( "Housing Fund ") and estimates of Housing Fund deposits over the next
five years.
■ Proposed use of the Housing Fund to increase, improve and preserve the
community's supply of housing available at affordable housing cost and
an estimate of the number of units to be assisted over the next five years.
■ Description of the Agency's inclusionary and replacement affordable
housing requirements and proposed activities to meet these requirements.
Ill. REDEVELOPMENT IMPLEMENTATION PLAN
A. The Agency
The Agency is a public body, corporate and politic, exercising
governmental functions and powers and organized and existing under Chapter 2 of the
CRL. The need for redevelopment was acknowledged in early 1980 after severe
flooding displaced numerous residents, businesses and some local industry, and
caused millions of dollars in damages to private and public property and facilities. In
addition, the flooding caused severe pollution of the Lake. In response to these
conditions, the City Council activated the Agency in July 1980 by the adoption of
Ordinance No. 605 -13. The members of the City Council serve as members of the
Agency. The Agency now includes three active Project Areas. The location of these
Project Areas is shown on the Project Area Map (Attachment No. 1). The primary
purposes of the Agency are to eliminate blight and blighted conditions in the Project
Areas and to increase, improve and preserve the community's supply of affordable
housing.
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I. INTRODUCTION
The Redevelopment Agency of the City of Lake Elsinore ( "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 "). 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. II, and No. III ( "Project Areas "). As described in the Project Area
History in Section III.B. of this Implementation Plan, the Project Areas were established
in 1980/1981, 1983 and 1987, respectively.
Assembly Bill 1290, also known as the Community Redevelopment Law Reform
Act of 1993, enacted numerous revisions to the CRL. One of the most significant
provisions of AB 1290, which is codified in Section 33490 of the CRL, requires that
each redevelopment agency adopt a five -year implementation plan for each of its
redevelopment project areas. For all project areas established prior to December 31,
1993, AB 1290 required adoption of the first implementation plan by December 31,
1994.
CRL Section 33490 provides that the Implementation Plan must contain the
following information:
■ Specific redevelopment goals and objectives for each project area.
■ Specific programs, projects and expenditures proposed for the next five
years.
■ An explanation of how the goals, objectives, programs and expenditures
will contribute to the elimination of blight and implement the Agency's
housing obligations.
■ Information about the Agency's low and moderate income housing fund
and affordable housing activities, including proposals to meet the
agency's inclusionary housing requirements, if any.
In accordance with the requirements of CRL Section 33490, the Agency adopted
its first five -year implementation plan, known as the Redevelopment and Housing
Implementation Plan 1995 -1999, by Resolution No. RDA 94 -12 on December 6, 1994.
On January 11, 2000, pursuant to CRL Section 33490, the Agency adopted the
next five -year implementation plan entitled Redevelopment and Housing
Implementation Plan 2000 -2004 (the "2000 Implementation Plan "). Limited by debt
incurred in the early 1990's, the programs and expenditures contained in the 2000
Implementation Plan were a continuation of the Agency's prior commitments. Tax
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TABLE OF CONTENTS
I. INTRODUCTION ..................................................................... ..............................1
II. PURPOSE OF THIS IMPLEMENTATION PLAN .................... ..............................3
III. REDEVELOPMENT IMPLEMENTATION PLAN ..................... ..............................3
A. The Agency .................................................................. ..............................3
B. Project Area History ..................................................... ..............................4
(1) Rancho Laguna Redevelopment Project Area No. I ........................4
(2) Rancho Laguna Redevelopment Project Area No. 11 .......................5
(3) Rancho Laguna Redevelopment Project Area No. III ......................6
(4) Summary of Redevelopment Plan Limits for All Project Areas ........ 7
C. Purpose of the Redevelopment Plans .......................... ..............................7
D. Goals and Objectives ................................................... ..............................8
(1) General Agency Goals and Objectives .............. ..............................8
(2) Rancho Laguna Redevelopment Project Area No. 1 ......................10
(3) Rancho Laguna Redevelopment Project Area No. II .....................11
(4) Rancho Laguna Redevelopment Project Area No. 111 ....................12
E. Programs and Expenditures ........................................ .............................13
(1) Policy Overview ................................................ .............................13
(2) 2005 -2009 Five -Year Plan: Accomplishments .. .............................14
(3) 2009 -2014 Five -Year Plan ................................ .............................16
(4) Efforts Undertaken in Furtherance of 2009 -2014 Implementation
Plan Goals and Objectives .......................................... .............................22
F. Blight Elimination (How the Goals and Objectives, Projects and
Expenditures Will Eliminate Blight) .............................. .............................22
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ATTACHMENT NO. 1
MAPS OF PROJECT AREAS
[Attached]
developers to contribute toward the inclusionary housing needs of the community. The
Agency and the City Council are evaluating the proposed adoption of a citywide
inclusionary housing ordinance that would legislatively mandate residential
development to satisfy a 15% affordable housing inclusionary obligation triggered by
their projects. Through this effort, the Housing Fund resources can be focused on
providing the units necessary to satisfy the unmet existing inclusionary housing
requirement.
d. Housing Programs
State law provides alternative programs, projects and
activities that an agency may implement in order to meet the affordable housing
production obligations. The alternative programs include units that are constructed,
developed, rehabilitated or price- restricted. Therefore, in addition to new construction,
the Agency may, among other activities, implement the following programs:
Foreclosure of Covenants: The Agency may investigate the
purchase of covenants with existing units, whereby the Agency negotiates a financial
payment to a property owner to lower existing rents (in a percentage of his units), to
make them available low or moderate housing.
Rehabilitation: As funding becomes available, the Agency
will design and implement a rehabilitation program that includes single- and multi - family
housing. Sub -areas and /or neighborhoods located in the Project Areas will be identified.
In addition, policies and procedures will be prepared for the rehabilitation program.
Price - Restricted Units: AB 1290 allows the Agency to meet
a part of its affordable housing obligation by the acquisition (by purchase or regulation)
of long -term affordability restrictions on existing multi - family units that either are not
presently available at affordable housing cost to low and very low income households,
or are units that are presently available at affordable cost but may be subject to rent
increases that would no longer make the housing affordable.
Price- restricted units in existing multi - family housing is often
accomplished by a debt service reduction or helping non - profits acquire such housing
by providing downpayment assistance. The Agency will implement a program to work
with non - profits and the current owners of multi - family housing.
Similar acquisition of long -term affordability restrictions may
also be pursued on future multi - family and single family units within the City's Specific
Plan areas governed by development agreements stipulating the provision of affordable
housing.
Preservation: There is one multi - family development located
in a Project Area that has 20% of the units at affordable rents. This program will involve
working with the owners to extend the current affordability term and increase the
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