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Home My WebLink About09/23/2008 RDA Reports CITY OF LAKE ELSINORE REDEVELOPMENT AGENCY AGENDA THOMAS BUCKLEY, CHAIRMAN WWW.LAKE- ELSINORE.ORG ROBERT SCHIFFNER, VICE - CHAIRMAN (951) 674 -3124 PHONE DARYL HICKMAN, MEMBER (951) 674 -2392 FAX GENIE KELLEY, MEMBER LAKE ELSINORE CULTURAL CENTER ROBERT MAGEE, MEMBER 183 NORTH MAIN STREET ROBERT BRADY, EXECUTIVE DIRECTOR LAKE ELSINORE, CA 92530 ****************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** TUESDAY, SEPTEMBER 23, 2008 STUDY SESSION AT 4:00 P.M. PUBLIC SESSION AT 7:00 P.M. CALL TO ORDER -- 7:00 P.M. ROLL CALL PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE (Please read & complete a Speaker's Form at the podium, prior to the start of the City Council Meeting.) PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES (Please read & complete a Speaker's Form at the Podium, prior to the Start of the City Council Meeting. The Chairman will call on you to speak, when your item is called.) CONSENT CALENDAR (All matters on the Consent Calendar are approved on one motion, unless a Boardmember or any member of the public requests separate action on a specific item.) (1) Approval of Redevelopment Agency Minutes Recommendation: Approve the following minutes: a) Joint City Council /Redevelopment Agency Study Session — May 22, 2008. b) Joint City Council /Redevelopment Agency Study Session — September 9, 2008. c) Regular Meeting — September 9, 2008. (2) Warrant List Dated September 15, 2008 Recommendation: Authorize payment of Warrant List dated September 15, 2008. (3) Investment Report — August 2008 Recommendation: Receive and file. PUBLIC HEARING(S) (4) Mid -Term Review to Evaluate the Agency's Redevelopment and Housing Implementation Plan 2005 -2009 and the Progress of the Rancho Laguna Redevelopment Projects No. I, No. II and No. III Recommendations: a) Conduct a public hearing and receive public comments regarding the Implementation Plan and the progress of the Redevelopment Projects. b) Receive and file this mid -term report. BUSINESS ITEM(S) No business items. PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES EXECUTIVE DIRECTOR COMMENTS LEGAL COUNSEL COMMENTS BOARDMEMBER COMMENTS ADJOURNMENT The Lake Elsinore Redevelopment Agency will adjourn to a regular meeting to be held on Tuesday, September 23, 2008, at 5:00 p.m. to be held in the Cultural Center located at 183 N. Main Street, Lake Elsinore, CA 92530. AFFIDAVIT OF POSTING I, VIVIAN M. MUNSON, Agency Secretary of the City of Lake Elsinore, do hereby affirm that a copy of the foregoing agenda was posted at City Hall, 72 hours in advance of this meeting. / /ss // /q, al-00 V VIVIAN M. MUNSON DATE AGENCY SECRETARY _ .. _ ...._ JO I I 114\ ____ LAU L SI N OR E ``" DREAM EXTREME ler- REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: SEPTEMBER 23, 2008 SUBJECT: APPROVAL OF MINUTES Discussion The following Redevelopment Agency minutes are for approval as follows: a) Joint City Council /Redevelopment Agency Study Session - May 22, 2008. b) Joint City Council /Redevelopment Agency Study Session - September 9, 2008. c) Regular Meeting - September 9, 2008. Recommendation Concur with City Council approval of all submitted Joint City Council /Redevelopment Agency Study Session Minutes and all regular meeting Redevelopment Agency minutes as submitted. Prepared by: Vivian M. Munso Agency Secretary Approved by: Robert A. Brady I. Executive Director Agenda Item No. 1 Page 1 of 5 MINUTES REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, SEPTEMBER 9, 2008 CALL TO ORDER — 5:00 P.M. Chairman Buckley called the Redevelopment Agency meeting to order at 5:00 p.m. ROLL CALL PRESENT: CHAIRMAN BUCKLEY VICE - CHAIRMAN SCHIFFNER MEMBER KELLEY MEMBER MAGEE ABSENT: MEMBER HICKMAN CLOSED SESSION (1a) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) Property: APN 375 - 350 -012, -035, -036, -057 Agency Negotiator: Executive Director Brady Negotiating parties: Lake Elsinore Redevelopment Agency and Symantha Pham; Glenda Patton Under negotiation: Price and terms of payment (1 b) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) Property: APN 373 - 023 -026 Agency Negotiator: Executive Director Brady Negotiating parties: Lake Elsinore Redevelopment Agency and Mamie Hunt Under negotiation: Price and terms of payment Agency Counsel indicated any action taken during Closed Session would be reported during the regular portion of the meeting. The Redevelopment Agency meeting was recessed into Closed Session at 5:00 p.m. RECONVENE IN PUBLIC SESSION (7:00 P.M) Chairman Buckley reconvened the Redevelopment Agency meeting at 7:29 p.m. Also present were Executive Director Brady, Agency Counsel Leibold, Administrative 1 Agenda Item No. 1 Page 2 of 5 Services Director Pressey, City Treasurer Weber, Lieutenant Fontneau, Director of Public Works /City Engineer Seumalo, Director of Parks and Recreation Gonzales, Lake and Aquatic Resources Director Kilroy, Finance Manager Riley, Director of Community Development Preisendanz, Planning Technician Bitterolf and Agency Secretary Munson. CLOSED SESSION REPORT Agency Counsel Leibold reported on discussions undertaken during Closed Session. No reportable action was taken. PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 1 MINUTE There were no public comments. PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES There were no public comments. AGENCY APPROVES CONSENT CALENDAR NOS. 2 AND 3 The following items were listed on the Consent Calendar for Agency approval: (2) Approval of Redevelopment Agency Minutes Recommendation: Approve the following minutes: a) Joint City Council /Redevelopment Agency Study Session — August 26, 2008. b) Regular Meeting - August 26, 2008. (3) Warrant List Dated August 28, 2008 Recommendation: Authorize payment of Warrant List dated August 28, 2008. It was moved by Member Kelley, and seconded by Member Magee to approve Consent Calendar Item Nos. 2 and 3. The following vote resulted: AYES: CHAIRMAN BUCKLEY VICE - CHAIRMAN SCHIFFNER MEMBER KELLEY MEMBER MAGEE NOES: NONE 2 Agenda Item No. 1 Page 3 of 5 ABSENT: MEMBER HICKMAN ABSTAIN: NONE PUBLIC HEARING(S) There were no public hearings. BUSINESS ITEM(S) There were no business items. PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES There were no public comments. EXECUTIVE DIRECTOR COMMENTS No comments. LEGAL COUNSEL COMMENTS No comment. MEMBER COMMENTS No comment. ADJOURNMENT It was the consensus of the Redevelopment Agency to adjourn to a regular meeting on September 23, 2008, at 5:00 p.m. at the Cultural Center located at 183 N. Main Street, Lake Elsinore, CA, 92530. The following vote resulted: AYES: CHAIRMAN BUCKLEY VICE -CHAIR SCHIFFNER MEMBER KELLEY MEMBER MAGEE NOES: NONE ABSENT: MEMBER HICKMAN ABSTAIN: NONE 3 Agenda Item No. 1 Page 4 of 5 Chairman Buckley adjourned the meeting at 7:30 p.m. THOMAS BUCKLEY, CHAIRMAN REDEVELOPMENT AGENCY ATTEST: VIVIAN M. MUNSON AGENCY SECRETARY 4 Agenda Item No. 1 Page 5 of 5 CITY OF r�� LAKE LSINOKE DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: SEPTEMBER 23, 2008 SUBJECT: WARRANT LIST DATED SEPTEMBER 15, 2008 Discussion The warrant list is a listing of all general checks issued since the prior Warrant List. Recommendation Authorize payment of Warrant List dated September 15, 2008. Prepared By: Crystal Robinson 7 Account Specialist I �� Reviewed By: Matt N. Presse of Admi is ;, we Services /R. D. A. Treasurer Approved By: Robert A. Brady Executive Director Agenda Item No. 2 Page 1 of 3 SEPTEMBER 15, 200 LAKE ELSINORE WARRANT REDEVELO MEN' 1' AGENCY SUMMARY FUN ,®# FUN ]D DESCRIPTION! TOTAL 910 R.D.A. AREA 1 FUND $ 7,726.21 914 20% HOUSING SET ASIDE FUND 2,116.00 920 R.D.A. AREA 2 FUND 8,369.65 930 R.D.A. AREA 3 FUND 8,572.04 GRAND TOTAL $ 26,783.90 9/17/2008 Warrant 091508 1 of 1 Agenda Item No. 2 Page 2 of 3 SEPTEMBER 15.20®: LAKE ELSINORE WARRANT LIST REDEVELOPMEN" 1' AGENCY CHECK# VENDOR NAME AMOUNT 5998 HDL COREN & CONE $ 15,000.00 6027 LEIBOLD, MCCLENDON & MANN 11 783.90 TOTAL $ 26,783.90 9/17/2008 Warrant 091508 1 of 1 Agenda Item No. 2 Page 3 of 3 CITY OF ,�� LAKE 5LSINORE DREAM EXTREME,. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: SEPTEMBER 23, 2008 SUBJECT: INVESTMENT REPORT — AUGUST 2008 Discussion The Investment Report is a listing of all funds invested for the Redevelopment Agency as of the date shown on the report. Recommendation Receive and file. Prepared By: James R. Riley Finance Manage Reviewed By: Matt N. Press Director of Adminis ive Services/ RDA Treasurer Approved By: Robert A. Brady Executive Director Agenda Item No. 3 Page 1 of 2 REDEVELOPMENT AGENCY FOR THE CITY OF LAKE ELSINORE MONTHLY REPORT OF INVESTMENTS AUGUST 2008 INTEREST DATE MATURITY RATE PURCHASED RATE AMOUNT Local Agency Investment Fund 2.779% Daily 24 -Hour $ 32,829,692.13 INVESTMENT TOTAL $ 34,829,692.13 I certify that this report accurately reflects all pooled investments and it is in conformity with the investment policy as approved by the City Council on June 24, 2008. A copy of this policy is available in the office of the City Clerk. The pooled investments shown above provide sufficient cash flow liquidity to meet the next six months estimated expenditures. Matt N. Pressev Investment Officer September 23, 2008 Date Agenda Item No. 3 Page 2 of 2 CITY LADE 5LSINOR DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY, EXECUTIVE DIRECTOR DATE: SEPTEMBER 23, 2008 RE: MID -TERM REVIEW TO EVALUATE THE AGENCY'S REDEVELOPMENT AND HOUSING IMPLEMENTATION PLAN 2005 -2009 AND THE PROGRESS OF THE RANCHO LAGUNA REDEVELOPMENT PROJECTS NO. I, NO. II AND NO. III. 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 CRL requires every redevelopment agency to prepare and adopt a Five -Year Implementation Plan outlining (1) the agency's goals and objectives for the project area, (2) proposed programs, projects and estimated expenditures over the next five years, and (3) the agency's affordable housing goals and objectives, status of the Low and Moderate Income Housing Fund and the agency's inclusionary housing requirements. In accordance with these requirements, the Redevelopment Agency of the City of Lake Elsinore adopted an Implementation Plan in December 1994 and again in January 2000. The current 2005 -2009 Implementation Plan was adopted in November 2005. During the term of the Implementation Plan, the Agency is required to conduct a public hearing and hear testimony from all interested parties to review and evaluate the Implementation Plan and the progress of the redevelopment projects. Notice of the Agency's public hearing for the mid -term review of the 2005 -2009 Implementation Plan was published and posted as required by law. Discussion There are no substantial changes proposed for this mid -term review for the current 2005- 2009 Implementation Plan. An analysis by Staff finds that the Agency is progressing toward meeting the goals set forth in the 2005 -2009 Implementation Plan. There are only a few actions and /or clarifications during the term of the existing Implementation Plan that are notable. Agenda Item No. 4 Page 1 of 5 Staff Report Re Mid -Term Review to Evaluate the Implementation Plan September 23, 2008 Page 2 of 5 Redevelopment Plan Overview and Time Limits 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 ERAF1 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. 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. The following table summarizes the Redevelopment Plan time and financial limits. 1 Riverside County's Educational Revenue Augmentation Fund Agenda Item No. 4 Page 2 of 5 Staff Report Re Mid -Term Review to Evaluate the Implementation Plan September 23, 2008 Page 3 of 5 Redevelopment Plan Limits for Project Areas No. I, No. II and No. III Debt Plan Debt Tax Bond Debt Eminent Establishment Effectiveness Repayment Increment Domain (receipt of tax increment) 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 7/20/22 7/20/32 annually for for both expired (Added Area) both areas areas Adopted 7/20/81 Project No. II Repealed for 7/18/24 7/18/34 $15 million $120 expired Adopted 7/18/83 affordable annually million housing 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 annually million housing debt — Non-housing authority expired 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. I n an effort to improve the "readability" of the Redevelopment Plans and clarify ambiguities that present challenges in implementation, the Agency has initiated a Redevelopment Plan Update by processing a minor amendment under the provisions of the CRL that will result in an Amended and Restated Plan for each Project Area. Each Plan will (i) incorporate all prior amendments, (ii) reflect changes in the CRL that impose additional requirements and restrictions not reflected in the original text, (iii) update the land use provisions and (iv) clarify and restate the time limits and financial limits. In furtherance of the General Agency Goals and Objectives set forth in the 2005 -2009 Implementation Plan, the first actions relative to the updating process will be presented to the Agency Board for consideration in October 2008. 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. Agenda Item No. 4 Page 3 of 5 Staff Report Re Mid -Term Review to Evaluate the Implementation Plan September 23, 2008 Page 4 of 5 Affordable Housing Requirements The Agency is dedicated to increasing, improving and preserving the community's supply of affordable housing, including the provision of inclusionary housing units in accordance with CRL requirements. The Agency recently selected BRIDGE Housing Corporation through a competitive RFQ process to partner with and assist the Agency in identifying affordable housing opportunity sites for new construction of very low, low and moderate income housing and rehabilitation of existing dwelling units for long -term affordable housing purposes. The Agency maintains a policy of prioritizing its expenditure of Low and Moderate Income Housing Funds to assist affordable housing projects that will satisfy its inclusionary requirements. In addition, the CRL requires that the Agency expend its Low and Moderate Income Housing Fund in relative proportion to the housing needs of very low, low and moderate income households in the community as identified in the City's Housing Element. The Agency's 2005 -2009 Implementation Plan calculated this "proportionality test" based upon the July 2002 Housing Element. 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: 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 population under age 65 years is to the City's total population. The senior proportionality calculation set forth in the 2005 -2009 Implementation Plan is based upon the most recently published census data and continues to allow approximately 6.7% of the Agency's Housing Fund expenditures during the Implementation Plan period to target the senior population. Goals and Objectives The Agency continues to support and to make progress toward achieving the goals and objectives articulated in the 2005 -2009 Implementation Plan. In addition, the Agency supports the following goals and objectives for Project Area No. I: (i) seismic retrofitting of unreinforced masonry buildings as permitted by the CRL; (ii) rehabilitation and preservation of historic structures; and (iii) land assembly and lakeside improvements aimed at eliminating blighting conditions and stimulating jobs and economic activity in the downtown area. Agenda Item No. 4 Page 4 of 5 Staff Report Re Mid -Term Review to Evaluate the Implementation Plan September 23, 2008 Page 5 of 5 2005 -2009 Five -Year Programs and Expenditures Plan The Five -Year Plan of programs and expenditures set forth in the Agency's Implementation Plan 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. The Agency will continue to closely monitor the allocation of tax increment and all existing debt service obligations. With the adoption of Ordinance 1249 (discussed above) and the elimination of the time limit to incur debt in Project Area No. I, the Agency will also be obligated to pay various taxing agencies a statutory pass- through payment in accordance with the CRL. The Agency is examining the existing structure of its indebtedness and will pursue appropriate restructuring where savings and benefits are demonstrated. In this context, the Agency will adopt conservative projections of future tax increment given the decline in development activity in the Project Areas. Fiscal Impact None. Recommendations 1. Conduct a public hearing and receive public comment regarding the Implementation Plan and the progress of the Redevelopment Projects. 2. Receive and file this mid -term report. Prepared by: Barbara Leibold Agency Counsel Approved by: Robert A. Brady Executive Directo Agenda Item No. 4 Page 5 of 5