HomeMy WebLinkAbout2011-03-08; Housing & Redevelopment Commission; Resolution 49928
EXHIBIT 1
HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 499
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING THE 2011-2015 FIVE-YEAR IMPLEMENTATION
PLAN FOR THE SOUTH CARLSBAD COASTAL
REDEVELOPMENT AREA
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WHEREAS, the Redevelopment Plan ("Plan") for the South Carlsbad Coastal
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Redevelopment Area ("Project Area") of the Carlsbad Housing and Redevelopment Commission
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("Commission") was approved by the City Council of Carlsbad by Ordinance No. NS-553 adopted
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on July 18, 2000; and
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WHEREAS, Health and Safety Code Sections 33490(a)(1)(A) and 33490(b) of the
California Community Redevelopment Law (Health and Safety Code 33000 et. seq.) require all
redevelopment commissions to adopt an implementation plan every five years, following a noticed
public hearing; and
WHEREAS, Health and Safety Code Sections 33352 and 33490 require that the14
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 made16
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 low and moderate income18
housing set-aside and housing production requirements of Health and Safety Code Sections 33334.2,
33334.4, 33334.6, and 33413; and20
WHEREAS, pursuant to Health and Safety Code Section 33490, the Commission has
prepared a 2011 through 2015 Implementation Plan for the Project Area, and includes a ten-year
housing compliance program (2011-2020), as contained herewith as Exhibit 1; and
WHEREAS, pursuant to Health and Safety Code Section 33490(a)(1)(B), the24
Commission finds that adoption of this Implementation Plan is not a "project" as defined by Public
Resources Code Section 21000, and therefore the environmental review requirements of the26
California Environmental Quality Act do not apply to this action; and
WHEREAS, the Commission has conducted a duly noticed public hearing.
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1 NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
2 Commission of the City of Carlsbad as follows:
3 1. That the above recitations are true and correct.
4 2. The 2011-2015 Five-Year Implementation Plan for the South Carlsbad Coastal
5 Redevelopment Area, which includes a ten-year housing compliance program (2011-2020), is hereby
6 approved and adopted in the form attached herewith.
7 3. This approval and adoption of the Implementation Plan does not constitute
8 approval of any specific program, project or expenditure, and does not change the need to obtain any
9 required approval of a specific program, project, or expenditure from the Commission or City of
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing and
Redevelopment Commission of the City of Carlsbad on the 8th day of March 2011, by
the following vote, to wit:
AYES: Commission Members Hall, Kulchin, Blackburn, Douglas and Packard.
NOES: None.
ABSENT: None.
MATT^ALL, Chairman
ATTEST:
LISA HILDABRAND, Secretary
(SEAL)
EXHIBIT 2
CITY OF
CARLSBAD
2011-2015 FIVE-YEAR IMPLEMENTATION PLAN
AND 2011-2020 TEN-YEAR HOUSING COMPLIANCE PROGRAM
HOUSING AND REDEVELOPMENT COMMISSION
SOUTH CARLSBAD COASTAL REDEVELOPMENT AREA
Contents
ABOUT THIS IMPLEMENTATION PLAN 2
ABOUT THE PROJECT AREA 3
RECENT ACCOMPLISHMENTS 4
REDEVELOPMENT GOALS 6
PROPOSED REDEVELOPMENT PROGRAM 8
Existing Blight in the Project Area 8
Projects 8
TEN-YEAR HOUSING COMPLIANCE PROGRAM 11
Housing Production 11
Replacement Housing 12
Expenditures by Household Types 12
ABOUT THIS IMPLEMENTATION PLAN
This document, adopted on March 8, 2011, 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 2010-11 through 2014-15. This Implementation Plan also includes
the 10-year Housing Compliance Program (2011-2020) as required by Law. 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 Plan and Ten-Year Housing Compliance
Program.
Notable Timeframes
Redevelopment Plan Effectiveness
Adopted 2000 Expires 2031
Tax Increment Collection
Expires 2046
Implementation Plan
2011-2015
Housing Compliance Program
2011-2020
(For affordable housing program planning)
ABOUT THE PROJECT AREA
The City of Carlsbad is located in the northwestern portion of San Diego County, approximately
five miles south of the Camp Pendleton Marine Corps 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 106,804 persons as of 2010.1 Its natural setting, strong
commercial and industrial base, and proximity to the Pacific Ocean provide a unique living and
working environment.
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 Area, with final
adoption on July 18, 2000. The
Project Area includes the Carlsbad
Boulevard alignment, Ponto Beach
area, the South Carlsbad State
Beach Campgrounds, and the Encina
Power Station. 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.
South Carlsbad Coastal Redevelopment Area
1 SANDAG, August 2010.
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 Ponto Beachfront Village Vision Plan and approval by the
Housing and Redevelopment Commission, as well as certification of the related Environmental
Impact Report (EIR).
The Encinas Creek Bridge, over which Carlsbad Boulevard traverses in the central portion of
the Project Area, was replaced in 2010 due to its deteriorated and unsafe condition. The
replacement project cost was approximately $2.34 million.
The Commission has also worked diligently to oppose the approval of a second power plant in
the South Carlsbad Coastal Redevelopment Area by the California Energy Commission (CEC).
The Housing and Redevelopment Commission does not have jurisdiction over approval of the
permits for the new power plant. However, it is the Commission's opinion that it does have
jurisdiction to require the applicant to obtain required redevelopment permits and to require
certification that the new power plant will provide an extraordinary public purpose, per the
requirements of the South Carlsbad Coastal Redevelopment Plan. The applicant and the CEC
have failed to submit for the required redevelopment permits and to certify that they have met
the extraordinary public purpose findings. Therefore, the Housing and Redevelopment
Commission has continued to oppose approval of the permits for the power plant from both a
legislative as well as judicial perspective. Through Fiscal Year 2009-10, the Commission has
committed approximately $1.4 million toward this effort.
In addition to the planning work, infrastructure improvements, and administrative efforts noted
above, the Redevelopment Agency has initiated work on a project and planning effort to
exchange property with the State of California and to ultimately realign Carlsbad Boulevard to
enhance recreational opportunities for those who live, work and play in Carlsbad. These efforts
will not only eliminate blighting influences in the area but also provide additional visual and
recreational enhancements for the Carlsbad community.
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 programs, facilities and/or improvements.
The Commission had a cash balance of $640,722 at the end of Fiscal Year 2009-10. The
Commission received no non-housing tax increment revenue in fiscal year 2009-10. Due to
reduced assessments for the power plant property within the South Carlsbad Coastal
Redevelopment Area over the past five years, the current assessed value for the area is less
than the original base value by approximately $64 million. Therefore, the Commission has
received no tax increment revenue over the past five years, and does not expect to receive any
tax increment revenues until such time as substantial new developments are completed. By the
end of the five-year Implementation Plan period (FY 2014-15), the Commission anticipates that
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total assessed property value will have recovered to the original base value, and therefore could
begin receiving tax increment revenue in fiscal year 2015-16, outside this planning period.
The Low and Moderate Income Housing Set-aside Fund had an ending balance of
approximately $310,000 as of June 30, 2010. As with non-housing tax increment revenue, the
Commission does not anticipate accruing any additional housing set-aside revenue during the
2011-2015 Implementation Plan period.
I/I
REDEVELOPMENT 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 is intended to achieve the following goals:
Eliminating blight and environmental deficiencies in the Project Area.
CLEAN
Assembling of land into parcels for modern, integrated development with improved
pedestrian and vehicular circulation in the Project Area; rezoning, redesigning and
RE~USE developing properties which are stagnant or improperly utilized.
Increasing, improving and preserving the city's supply of housing affordable to very
low, low and moderate income households.
LIVE
PLAY
INVEST
ACCESS
WORK
i
SHOP
Developing new beach and coastal recreational opportunities.
Facilitating the redevelopment of the Encina Power Station to a physically smaller,
more efficient power generating plant.
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.
Retaining as many existing businesses as possible by means of redevelopment and
rehabilitation functions in the Project Area.
Enhancing commercial and recreational functions in the Project Area; increasing
parking and open space amenities.
HELP
Strengthening 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.
Implementing performance criteria to assure quality site design and environmental
standards to provide unity and integrity to the entire Project Area development.
PRESERVE
ft
PROPOSED REDEVELOPMENT PROGRAM
This section describes the proposed projects and funding sources (and some cost estimates) for
the five-year planning period of this Implementation Plan, and identifies the relevant
Redevelopment Plan goals that will be achieved in addressing the blighting conditions originally
found in the Project Area.
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 according to the
Ponto Beachfront Village Vision Plan and other land use strategies for the Project Area
However, the Commission will also pursue various public-private or public-public partnerships to
complete other desired projects/developments within the Project Area.
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. Public projects will be funded
with loan proceeds from the city and/or bond proceeds to be repaid at a later date with tax
increment funds.
Projects
Project/Program Description Funding
Source
Goals
Achieved
Live-Work Neighborhood
This project proposes to reuse some existing buildings as well
as retain some existing businesses to enhance the Project
Area's economic base.
This project will eliminate factors hindering economically
viable uses, incompatible uses and unhealthy buildings.
Private
Investment and
AvailableTax
Increment for
related public
improvements
WORK
HELP
Project/Program Description Funding
Source
Goals
Achieved
Garden/Resort Hotel
Three story hotel with ocean views, a restaurant, spa and
meeting rooms.
This project will eliminate factors hindering economically
viable uses.
$75 million from
Private
Investment 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 and
AvailableTax
Increment for
related public
improvements
LIVE
REUSE
Desalination Facility
Commission has approved permits to allow for development of
a new desalination facility on property within the Project Area.
This project will eliminate factors causing inadequate public
infrastructure, economic viability and incompatible uses, and
also provide for a reliable water source to allow for future
private and public development.
$285 million
from Private
Investment
PRESERVE
CLEAN
Street Enhancements
Exchange of property with the State of California, and
realignment of Carlsbad Boulevard with general right-of-way
improvements to Avenida Encinas, Carlsbad Boulevard,
Cannon Road and Ponto Drive. These improvements may
include street overlay construction, traffic control upgrades,
curb and gutter replacement, new and rehabilitated sidewalks,
bikeway improvements, bridge rail replacement, landscape
and additional turn lanes.
These street enhancements will improve inadequate public
infrastructure and safety infrastructure in the overall Project
Area.
Private
Investment and
AvailableTax
Increment as
appropriate for
the proposed
improvements
ACCESS
HELP
115
Project/Program Description
Capital Improvement Projects
Various Commission-approved capital projects that have been
identified to improve aging or dilapidated public infrastructure.
Capital projects include, but are not limited to repairs,
upgrades, and replacement of sewer and water systems;
storm drain system repairs and improvements; trail and beach
access improvements.
Encina Power Station Property Redevelopment
Complete planning efforts to allow for redevelopment of power
plant property into a new center for tourist-visitor-resident
activities, such as hotel, restaurants, recreational amenities,
parking and other public infrastructure.
These developments and improvements will eliminate
incompatible uses, physical conditions that hinder economic
viable use, and buildings and infrastructure that are
dilapidated, unsafe and/or unhealthy. Inadequate public
infrastructure will also be addressed.
Funding
Source
Available Tax
Increment as
appropriate and
other public
financing
Tax Increment
and other public
financing
Goals
Achieved
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HELP
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TEN-YEAR HOUSING COMPLIANCE PROGRAM
This section contains 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 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 10 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.
During the 10-year planning period (2011-2020) of this compliance plan, no new housing
development or substantial rehabilitation is expected to take place in the Project Area. Since
2000, when the redevelopment plan and first 10-year housing compliance plan were adopted,
there were no units produced or substantially rehabilitated, and no units are expected to be
produced or substantially rehabilitated during the next 10-years (2011-2020). Therefore, no
production requirement has been or is anticipated to be generated. However, if future
development in the Ponto Area is successful, there is the potential for up to 100 units to be built
n
as an alternative to a visitor-serving commercial development or as part of a mixed use
development. If this does occur, this plan will be amended accordingly.
Fulfillment of Affordable Housing Production Requirements
During the Implementation Plan, no additional residential units are anticipated to be constructed
unless the property owner/developer seeks approval of an alternative development which is
permitted under the existing zoning. The existing zoning and Vision Plan for the area allow for
visitor-serving commercial as well as mixed-use and/or residential. If this alternative
development is pursued, there may be up to a maximum of 100 privately-developed residential
units constructed within the area. This would result in a requirement to build 15 inclusionary
units affordable to low/moderate income households, with 6 of the units affordable to very low
income households. This requirement will be provided for within the private developments, or
according to a separate development approved within an affordable housing agreement. The
Housing and Redevelopment Commission does not intend to construct affordable housing
within the South Carlsbad Coastal Redevelopment at this time.
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 estimates as of July, 2010, the Commission anticipates that the low and moderate
income housing fund has a fund balance of approximately $310,000. Over the 10-year planning
period it is conservatively estimated that the Project Area will generate $3 million in 20% low
and moderate income housing set aside revenue, if private development occurs as anticipated
These funds may be used both inside and outside the SCCRA to provide for affordable housing
units.
The Commission's low and moderate income housing set-aside revenue is to be expended to
assist housing for persons of very low and low income in at least the same proportion as the
total number of housing units needed for each of those income groups bears to the total number
of units needed for persons of very low, low, and moderate income within the city. In addition,
the low and moderate income housing set-aside revenue is to be expended to assist housing
that is available to all persons regardless of age in at least the same proportion as the number
of low-income households with a member under the age 65 years bears to the total number of
low-income households of the city.
The minimum thresholds for housing program expenditures that would be required over the term
of the Implementation Plan are shown on the following table. The spending targets are based on
the 2005-2010 Regional Housing Needs Assessment ("RHNA") used by the City of Carlsbad to
meet the state planning requirements for affordable housing by category, as well as 2000
Census Bureau estimates regarding householder age and income.
Household Type No. of
Households
Percentage of Housing
Set-aside Expenditures
over Implementation Plan
By Income1
Very Low Income Households (up to 50% AMI2)
Low Income Households (51-80% AMI)
Moderate (81-120% AMI)
Total
1,726
647
1,223
3,596
48%
18%
34%
100%
Minimum
Minimum
Maximum
By Age3
Low Income Householders Under Age 65
Low Income Householders Age 65 or Older
Total
24,722
6,688
31,410
79%
21%
100%
Minimum
Maximum
Notes:
<1> City of Carlsbad, Annual Housing Element Progress Report, 2009
I2> AMI: Area Median Income
I3> 2000 U. S. Census SF 3, Age of Householder by Householder Income in 1999
While it is anticipated no affordable units will be developed in the Project Area during the 10-
year planning period, the Commission will be evaluating potential programs and projects as
to their ability to meet RHNA requirements.
Housing Set-Aside Expenditures since July, 2005. It is estimated the Commission has
expended $157,000 of the housing set-aside funds received for the Project Area during the
five-year period of the previous implementation plan (2005-2010). A total of $75,847 in
revenue was received during this time. The fund balance at the end of the 2009-2010 fiscal
year was approximately $310,000. The funds were expended on various affordable housing
administrative activities leading to the completion of the Ponto Beachfront Village Vision
Plan, its respective housing elements and housing development administrative activities.
Additionally, since July 2000, the Redevelopment Agency has expended low-moderate
income housing funds from both the Village and Project Area on two (2) affordable housing
projects outside both redevelopment areas.
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). Although no new residential units have
been developed, or are anticipated to be developed over the next ten years in the Project
Area, the mixed-use developments and alternate land use zoning do allow for new
residential units and would create 15 new affordable units with 6 being restricted to
households with very low-incomes, if ultimately developed. As units are developed, the
Commission expects to be in compliance with this requirement within the proposed
developments. This plan will be amended if applications for new residential development are
received for processing. As noted, the redevelopment requirements for affordable housing
will be met within any new residential development, or as allowed by redevelopment law.
For the affordable housing developments outside the Project Area but assisted with low-
moderate income housing funds, both projects were family housing developments. The
iq
percentage of low income affordable units within those developments was 31%, and the
very low income unit percentage was 69%. No moderate income affordable units were
assisted with low-moderate income housing set-aside funds.
• Housing Units Constructed During Prior Implementation Plan Without Housing Set-
Aside Funds. Since July 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).