HomeMy WebLinkAbout2006-01-17; Housing & Redevelopment Commission; Resolution 4071
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HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 407
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING A FIVE-YEAR IMPLEMENTATION PLAN FOR THE
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
WHEREAS, the Redevelopment Plan ("Plan") for the South Carlsbad Coastal Redevelopment
Area ("Project Area") of the Carlsbad Housing and Redevelopment Commission ("Commission") was
approved by the City Council of Carlsbad by Ordinance No. NS-553 adopted on July 18, 2000; and
WHEREAS, Section 33490(a)(l)(A) of the California Community Redevelopment Law, Health
and Safety Code 33000 et. seq. ("Law") requires all redevelopment commissions to adopt an
implementation plan every five years, following a noticed public hearing; and
WHEREAS, Section 33490(a)(l)(A) requires that the Implementation Plan contain the specific
goals and objectives of the Commission for the Project Area, the specific programs, including potential
projects, and estimated expenditures proposed to be made during the next five years, and an explanation of
how the goals and objectives, programs, and expenditures will eliminate blight within the Project Area and
implement the requirements of Sections 33334.2, 33334.4, 33334.6, and 33413 of Law; and
WHEREAS, pursuant to Section 33490 of the Law, the Commission has prepared a 2005-06
through 2009-10 Implementation Plan for the Project Area, as contained herewith as Exhibit A; and
WHEREAS, the Commission has conducted a duly noticed public hearing.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Commission of
the City of Carlsbad as follows:
1 . That the above recitations are true and correct.
2. The Five-Year Implementation Plan for the South Carlsbad Coastal Redevelopment Area is
hereby approved and adopted in the form attached herewith.
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3. This approval and adoption of the Implementation Plan does not constitute approval of any
specific program, project or expenditure, and does not change the need to obtain any required approval of
a specific program, project, or expenditure from the Commission or City of Carlsbad.
PASSED, APPROVED AND ADOPTED at the Regular meeting of the Housing and
Redevelopment Commission of the City of Carlsbad, California, on the 17th day ofJanuary, 2006, by
the following vote, to wit:
AYES: Conanission Members Lewis, Hall, Kulchin, Packard, Sigafoose
NOES: None
ABSENT: None
CLAUDE A. LEWIS; Chairman
ATTEST:
TT, SecretaryJ J<s7 ESTABLISHED ''--\\
1970 /s 5*>\
EXHIBIT A
to the Resolution
FIVE-YEAR IMPLEMENTATION PLAN
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
RSG
INTELLIGENT COMMUNITY DEVELOPMENT
5
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
ABOUT THIS IMPLEMENTATION PLAN
This document, adopted on January 17, 2006, is the Five-Year Implementation Plan
("Implementation Plan") for the South Carlsbad Coastal Redevelopment Project Area ("Project
Area") in fulfillment of Article 16.5 of the California Community Redevelopment Law ("Law").
This Plan presents the Carlsbad Housing Redevelopment Commission's ("Commission")
anticipated projects and programs, goals and objectives, as well as estimated revenue for the
five-year planning period of 2005-06 through 2009-10. Also, included in this document is the
mid-term review of the Commission's anticipated affordable housing program for 2000-01
through 2010-11 (Ten-Year Housing Compliance Plan). Adopting this Plan does not approve
any of the listed projects. Specific project implementation activities are subject to environmental
review and discretionary approvals by the Commission. This Plan replaces the Commission's
existing Five-Year Implementation and Ten-Year Housing Compliance Plans that were
approved on July 18, 2000, when the South Carlsbad Coastal Redevelopment was originally
adopted.
Contents
ABOUT THIS IMPLEMENTATION PLAN 1
Contents 1
About the Project Area 2
Recent accomplishments 3
Revenue Projections 3
Redevelopment Plan Goals 5
Proposed Redevelopment Program 7
Existing Blight in the Project Area 7
Projects 7
Ten-Year Housing Compliance program 9
Housing Production 9
Replacement Housing 11
Expenditures by Household Types 11
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
ABOUT THE PROJECT AREA
The City of Carlsbad ("City") is located in the northwestern portion of San Diego County,
approximately 5 miles south of the Camp Pendleton Marine Base and 30 miles north of
downtown San Diego. Incorporated in 1952, the City encompasses an area of approximately
39.1 square miles with an estimated population of 92,995 persons in 2004. Its natural setting,
strong commercial and industrial base, and proximity to the Pacific Ocean provide a unique
living and working environment.
Notable Timeframes
Redevelopment Plan Effectiveness
Adopted 2000 Expires 2031
Tax Increment Collection
Expires 2046
Implementation Plan
2005 to 2010
Housing Compliance Plan
2000 to 2010
(For affordable housing program planning)
South Carlsbad
Coastal
Redevelopment
Area
The Commission was formed in 1981 to facilitate
redevelopment activities in the City of Carlsbad. In
1999, the Commission initiated the adoption of the
South Carlsbad Coastal Redevelopment Project Area,
with final adoption on July 18, 2000. The Project Area
includes the Ponto Beach area and the Encina Power
Generating Facility. Redevelopment became a tool for
the City to address issues of blight in the area relating
to deteriorating and dilapidated buildings, health and
safety hazards, incompatible land uses, inadequate
utilities and infrastructure.
Ponto Study
Area
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
RECENT ACCOMPLISHMENTS
During the past five years, the Commission has facilitated planning efforts to provide a
successful background for future projects and programs in the Project Area. These efforts have
culminated in the completion of the draft Ponto Beachfront Village Vision Plan. Completion of
the Environmental Impact Report (EIR) is pending for the Plan. It is anticipated that the draft
EIR will be distributed for public review in January/February, 2007.
REVENUE PROJECTIONS
Private investment of projects will be the primary financing tool for projects in the South
Carlsbad Coastal Redevelopment Area. Tax increment financing will be used as appropriate for
public facilities and/or improvements.
The Commission had approximately $1.01 million in non-housing cash assets on hand at the
end of the 2003-2004 fiscal year for Project Area activities. The Commission .received
approximately $161,425 in non-housing tax revenue in fiscal year 2004-05. The total non-
housing cash on hand as of June 30, 2005 was approximately $1 million.
From fiscal years 2005-06 to 2009-10, the Commission is projected to receive approximately
$2.82 million in non-housing revenue. When combined with the projected $1 million in 2004-05
fiscal year end non-housing cash assets, the Commission will have approximately $3.8 million
to fund non-housing projects and programs. It should be noted that the power plant property has
been reassessed twice since the redevelopment plan was adopted in July, 2000. This has
created a financial situation for the SCCRA whereby there will be no tax increment revenue
generated in FY 2005-06. The current assessed property value for the SCCRA is $242,152,180.
The assessed property value at the time the SCCRA Plan was adopted was $254,521,305. As a
result, we currently have a negative increment value of $12,369,125. With new development
projects, it is anticipated that the assessed property value for the SCCRA will increase during
the period of this implementation plan. The projected revenue noted above is based on the
development of new projects.
1 Statement of Indebtedness for year end balance on June 30, 2004.2 After estimated payments to taxing agencies have been deducted.
S
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
The Low and Moderate Income Housing Set-Aside
Fund for the SCCRA will accrue approximately
$948,000 in housing set-aside funds during this five-
year period. When added to the estimated housing
set aside fund balance on June 30, 2005 of
$380,000, the Commission is estimated to have
approximately $1.3 million during this five year
implementation period.
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
REDEVELOPMENT PLAN GOALS
In 2000, the Commission adopted the Redevelopment Plan for the Project Area
("Redevelopment Plan") establishing a variety of goals for redevelopment of the Project Area;
these goals frame the near term redevelopment objectives for the Implementation Plan period.
The Redevelopment Plan goals are listed below:
Eliminate blight and environmental deficiencies in the Project Area.
Assembling of land into parcels for modern, integrated development with improved
pedestrian and vehicular circulation in the Project Area. Rezoning, redesigning and
developing properties which are stagnant or improperly utilized.
CLIAN
REUSE
LIVE
*
PLAY
Increase, improve and preserve the City's supply of housing affordable to very low,
low and moderate income utilized.
Develop new beach and coastal recreational opportunities.
Facilitate the redevelopment of the Encina Power Generating Facility to a physically
S smaller, more efficient power generating plant.
INVEST
Funding the Carlsbad Boulevard realignment which will yield excess property that
could facilitate expansion of the Carlsbad State Beach campgrounds and/or provide
for other recreational facilities.
ACCESS
A
WORK
Retain as many existing businesses as possible by means of redevelopment and
rehabilitation functions in the Project Area.
i
SHOP
Enhance commercial and recreational functions in the Project Area. Increase
parking and open space amenities.
JO
HILP
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
Strengthen the economic base of the Project Area and the City by installation of
needed on- and off-site improvements to stimulate new commercial/residential
expansion, employment and economic growth.
Implement performance criteria to assure quality site design and environmental
standards to provide unity and integrity to the entire Project Area development.
PRESERVE
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
PROPOSED REDEVELOPMENT PROGRAM
This section identifies the blighting conditions originally found in the Project Area, and the
proposed projects, their related costs, and the Redevelopment Plan goals that will be achieved
during the five-year planning period of this Implementation Plan.
Existing Blight in the Project Area
According to the Commission's documents, prepared to justify establishing a redevelopment
program, the Project Area contained numerous blighting conditions including the following:
• Incompatible Uses
• Inadequate Public Infrastructure
• Irregular Lots under Mixed Ownership
• Physical Conditions that Hinder Economic Viable Use
• Buildings and Infrastructure that are Dilapidated, Unsafe and Unhealthy
In order to address the remaining blight, it is anticipated that the Commission will guide and
direct development of the following private and/or public projects during the next five years.
Many of the projects are proposed to be constructed by private developers if the Ponto
Beachfront Village Vision Plan is ultimately adopted by the City Council and/or Housing and
Redevelopment Commission. If the Ponto Plan is not ultimately approved for any reason
following completion of the EIR, the list of projects outlined in this implementation plan will be
revised to reflect appropriate changes.
As a reflection of the Commission's revenue projections it is anticipated the majority of these
projects will be funded from non-property tax increment sources.
Projects
Project/Program Description Preliminary
Cost Estimate
Goals
Achieved
Live-Work Neighborhood
This project proposes to reuse some existing buildings as well
as retaining some existing businesses to enhance the Project
Areas economic base.
This project will eliminate factors hindering economically
viable uses, incompatible uses and unhealthy buildings.
Private
Investment &
Available
Tax Increment
for related
public
improvements
WORK
HILP
!2
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
Garden Hotel
Three story hotel with ocean views with conference center.
This project will eliminate factors hindering economically
viable uses.
Private
Investment &
Available
Tax Increment
for related
public
improvements
PLAY
Village Hotel
Low-rise hotel that may also be developed with apartments or
for-sale multi-family residential uses, in addition to providing
support for the Mixed Use Center.
This project will eliminate factors hindering economically
viable uses and lots under mixed ownership.
Private
Investment &
Available
Tax Increment
for related
public
improvements
LIVE
REUSE
Poseidon Desalination Facility
Commission is processing a Precise Development Plan to
improve land-use and planning oversight for this project.
This project will eliminate factors causing inadequate public
infrastructure, economic viability and incompatible uses.
$270 million
from Private
Investment
PRESERVE
0
CLEAN
Street Enhancements
Realignment of Carlsbad Boulevard and general right-of-way
improvements to Avenida Encinas, Carlsbad Boulevard and
Ponto Drive. These improvements may include street overlay
construction, curb and gutter replacement, new and
rehabilitated sidewalks, landscape and additional turn lanes.
These street enhancements will improve inadequate public
infrastructure and safety infrastructure in the overall Project
Area.
Private
Investment &
Available
Tax Increment
as appropriate
for the
proposed
improvements
ACCESS
HELP
Carlsbad Blvd Encinas Creek Bridge Replacment
Reconstruction of the bridge at Encinas Creek.
These improvements will improve inadequate public
infrastructure.
Tax Increment
and other public
financing
ACCESS
HELP
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
TEN-YEAR HOUSING COMPLIANCE PROGRAM
This section contains the mid-term review (5-year) of the Commission's 10-year Housing
Compliance Program. The Law requires that the Commission evaluate specific requirements
relating to the Implementation Plan's affordable housing activities during the past five years and
the anticipated housing programs in the future. Redevelopment agencies use implementation
plans to establish objectives for achieving compliance with the Law regarding their affordable
housing programs. Affordable housing obligations generally fall into three categories:
• Housing Production - based on the number of housing units constructed or substantially
rehabilitated in the Project Area, a redevelopment agency must ensure that a percentage of
these units are affordable to very-low, low- and moderate- income households.
• Replacement Housing - redevelopment agencies must ensure that any housing units
destroyed or removed as a result of a redevelopment project are replaced within four years.
• Targeting Household Types - identify the amount of housing set-aside funds the
redevelopment agency will allocate on increasing and improving the supply of housing
affordable to very low income households and low income households, and housing for
residents under the age of 65.
The housing programs the Commission will implement during the next five years are described
below.
Housing Production
To estimate the number of housing units that need to be affordable to low- and
moderate-income households, the Commission estimated the total number of units to
be constructed or substantially rehabilitated in the Project Area and applied
mandates established by the Law. "Substantially rehabilitated" is defined in the Law,
Section 33413(b)(2)(A)(iv) as a rehabilitated structure, "the value of which constitutes
25% of the after rehabilitation value of the dwelling, inclusive of the land value".
Generally, 15% of all privately developed or substantially rehabilitated units within a
redevelopment project area must be affordable to very low, low and moderate
income households, and not less than 40% of these units must be affordable to very
low income households. Further, 30% of all Commission developed or substantially
rehabilitated units must be affordable to very low, low and moderate income
households and not less than 50% of these units must be affordable to very low
income households. All of the affordable units must feature covenants that maintain
their affordability for 45 years, if they are owner-occupied dwellings, and 55 years, if
they are rental dwellings.
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
The chart on the following page summarizes the production goals over various time
periods as required by Law. The number of required affordable housing units is
based upon statutory thresholds, and the Commission is responsible for ensuring
that the appropriate number of affordable units is created during the five-year
planning period.
Actual and Projected Housing Needs by Time Period
Time Period
Prior to 2005
5-Year Forecast
(2005 to 2010)
(2011 to 2031)
Redevelopment Plan Duration
(Until 2031)
Actual/Assumed Housing Units
Constructed and Substantially
Rehabilitated in the Project Area
0
0
172
172
Affordable Units
Reo
Total
0.0
0.0
25.8
26
uired
Very Low
0.0
0.0
10.4
10
During the five-year planning period (2005-2010), no new housing development is
expected to take place in the Project Area. As demonstrated in the table above
during the first 5-years of the existing 10-Year Housing Compliance Plan there were
no units produced and no units are expected to be produced in the final 5-years
(2005-2010), therefore no production requirement generated.
Over the 31-year duration of the Redevelopment Plan, the Commission anticipates
the need for a total of 26 affordable units (including 10 very low-income units).
Fulfillment of the production goals is demonstrated in the table below; whereby 172
new units are produced during the remaining duration (2011-2031) of the
Redevelopment Plan generating the production requirements for 26 affordable units
(including 10 very low-income units).
IS
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
Fulfillment of Affordable Housing Production Requirements by Time Period
Time Period
Prior to 2005
5-Year Forecast
Redevelopment Plan Duration
(Until 2031)
Units
Required (see
previous
table)
Total VL
0 0
0 0
26 10
Units
Produced
Total VL
0 0
0 0
26 10
Additional
Units
Required
Total VL
0 0
0 0
0 0
Net Surplus
Units
Produced
Total VL
0 0
0 0
0 0
Replacement Housing
During the Implementation Plan period, the Commission does not anticipate that any
Commission-assisted projects will result in the displacement or removal of housing
units. Consequently, the Commission does not anticipate that any housing will need
to be replaced at this time.
Expenditures by Household Types
Based on preliminary estimates as of April 2005, the Commission anticipates that the
low and moderate income housing fund has a fund balance of approximately
$380,0003. Over the five-year planning period it is conservatively estimated that the
Project Area will generate $948,000 in 20% low-moderate income housing set aside
revenue.
At a minimum, the Commission's low- and moderate- income housing set-aside
revenue is to be expended in proportion to the community's need for very low- and
low- income housing, as well as the proportion of the population under the age of 65.
Based on statistics from the Regional Housing Needs Assessment ("RHNA"), used
by local government to meet the state requirement for affordable housing by
category and 2000 Census statistics, the minimum thresholds for housing program
expenditures on the following page would be required over the term of the
Implementation Plan. While it is anticipated no affordable units will be developed
during the five-year planning period, the Commission will be evaluating potential
programs and projects as to their ability to meet RHNA requirements.
Based on the housing fund year end balance (on June 30, 2004) of $363,600 and combined with $16,800 actual net
housing set-aside revenue for the 2004-05 fiscal year.
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
Household Type Minimum Percentage of
Housing Set Aside
Expenditures over
Implementation Plan
Very Low Income Households
(Based on community's need for housing for households
earning less than 54% of County median income)
30%
Low Income Households
(Based on community's need for housing for households
earning less than 86% of County median income)
22%
Household Age 65 & Over
(Based on percentage of the City's 2000 Census
population age 65 and over)
14%
Notes:
Percentage of very low and low income household expenditures based upon City of Carlsbad
Regional Housing Needs Assessment in which 2,499 (30%) of the total 8,3537 units in the City's
housing are applicable for very low income households and 1,811 units (22%) are applicable for
low-income households.
Percentage of expenditures for housing age 65 and over based on 2000 Census data for the City,
wherein 10,976 residents (14%) of the total population of 78,247 are age 65 and over.
• Housing Set-Aside Expenditures since January 2002. These proportionality
requirements affect expenditures over a ten-year period, although the law permits
the compliance initially for a period beginning in January 2002 and ending in
December 2012. It is estimated the Commission has expended $220,000 of the
$487,0004 housing set-aside funds received since January 2002. These funds
have been spent on various administrative activities leading to the completion of
the Ponto Beachfront Village Vision Plan and its respective housing elements.
Although there have been no expenditures based on specific low- and moderate-
income categories, the Commission expects to be in compliance with all income
categories after fully implementing its residential rehabilitation programs and
projects. The chart below documents the amount of low- and moderate- income
housing fund revenue used since January 2002:
Total through fiscal year 2004-05.
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Implementation Plan
2005-06 through 2009-10
Housing Expenditures and Proportionality Since January, 2002
Income Category
Very Low Income
Low Income
Moderate Income
Total Expenditures:
2001-02
$0
$0
$0
$19,344
2002-03
$0
$0
$0
$16,497
2003-04
$0
$0
$0
$22,661
Period to Date
$0
$0
$0
$58,502
• Family Units Assisted by Housing Set-Aside Fund. State law also requires a
recap of the number of the projects assisted by the housing set-aside fund over
the past Implementation Plan period divided by family projects (open to all age
groups) and senior projects (restricted to residents age 65 and older). The
Ponto-Townhouse and mixed-use developments will create 26 new affordable
units with 10 being restricted to households with very low-incomes. As units are
developed, the Commission expects to be in compliance with this requirement.
• Housing Units Constructed During Prior Implementation Plan Without
Housing Set-Aside Funds. Since January 2000, no other funding source was
used by the Commission to construct affordable units featuring long term
covenant restricted units (affordable units with covenants of at least 45 years for
ownership housing or 55 years for rental housing).