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HomeMy WebLinkAbout2000-06-27; City Council; 15803 Exhibit 5; Report to the City CouncilEXHIBIT D South Cads bad Coastal Redevelopment Project Report to the City Council June 27,2000 Carisbad Housing and Redevelopment Commission 2965 Roosevelt Street, Suite B Carlsbad, California 92008 Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 Phone: (714) 5414585 Fax: (714) 836-1 748 E-Mail: info@webrsg.com Table of Contents Introduction .................................................................................... I Contents of this Report ........................................................................................... I The Reasons for the Selection of the Project Area, Including a Description of Proposed Projects and How Such Projects Will Improve or Alleviate Blight .......................................................... A-I Geographic Boundaries ..................................................................................... .A-2 A Determination as to Whether the Project Area is Predominately Urbanized .A4 Background ........................................................................................................ .A4 Blighting Conditions in Project Area ................................................................... A-7 How the Project Area is a Burden on the City .................................................... A-7 A Description of the Projects Proposed by the Commission .............................. A-8 A Description of How the Proposed Projects Will Improve and Alleviate Blight ........................................................................................................................... A-IO A Description of the Physical and Economic Conditions Existing in the Project Area... ....................................................................... B-I Legal Context of Blight ........................................................................................ B-I Blighting Conditions in the Project Area ................................ .............................. B-4 Five-Year Implementation Plan .................................................... C-I Plan Goals .......................................................................................................... C-I Blighting Conditions ........................................................................................... C-2 Financial Resources .......................................................................................... C-4 Five-Year Programs and Expenditures ............................................................. C-5 An Explanation of Why the Elimination of Blight Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing ....... D-I Method of Financing and Economic Feasibility of the Plan ............ E-1 Projected Tax Increment Revenues ................................................................... E-3 Economic Feasibility Analysis ................................................................ ............. E4 The Method of Relocation .... ......... .......................... .... ........ - ....... F-I An Analysis of the Preliminary Plan ............... ............. .. ..... ........ 6-1 The Report and Recommendations of the Planning Commission... H-I Report and Recommendation of the Project Area Committee ........ 1-4 A Statement of Conformance to the General Plan ........ . ................ J-1 The Environmental Impact Report .. ........ , ......... , ............ . ............ K-I Report of the County Fiscal Officer ...... ................ .... .................... L-1 Neighborhood Impact Report .............................................. ... ...... M-I A Summary of the Commission's Consultations with Affected Taxing Entities and a Response to Said Entities' Concerns Regarding the Plan ..................................... , ........................... ......... ........ ....... N-1 Introduction This document is the Report to the City Council (“Report”) for the proposed Redevelopment Plan (“Plan”) for the South Carlsbad Coastal Redevelopment Project (“Project”). The Carlsbad Housing and Redevelopment Commission (“Commission”) is evaluating the Plan’s merits in addressing and alleviating physical and economic blighting conditions within the proposed South Carlsbad Coastal Redevelopment Project Area (“Project Area”). If adopted, the Plan would establish the 555.5-acre Project Area, which includes properties generally bounded by the Pacific Ocean to the west, Interstate 5 to the east, the Agua Hedionda Lagoon to the north, and the southern City limits to the south. This Report has been prepared in accordance with Section 33000 et. seq. of the Health and Safety Code of the State of California (the California Community Redevelopment Law or “Redevelopment Law”). This Report represents the culmination of the documentation of the proposed Plan, having been preceded by the following documents. Preliminary Plan, Draft Redevelopment Plan, Preliminary Report, Owner Participation Rules Relocation Guidelines, and Program Environmental impact Report This Report has been prepared by Commission staff and its redevelopment consultant, Rosenow Spevacek Group, Inc. (RSG). The contents of this Report are prescribed by Section 33352 of the Redevelopment Law, and accordingly have been divided into the following sections: SECTIONA. The Reasons for Selection of the Project Area, Including a Description of Proposed Projects and How Such Projects Will Improve or Alleviate Blight. SECTION B. A Description of the Physical and Economic Conditions Existing in the Project Area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - I - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT SECTION C. Five-Year Implementation Plan. SECTION D. An Explanation of Why the Elimination of Blight Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing. SECTION E. Method of Financing and Economic Feasibility of the Plan. SECTION F. The Method of Relocation. SECTION G. An Analysis of the Preliminary Plan. SECTION H. The Report and Recommendations of the Planning Commission. SECTION I. Report and Recommendation of the Project Area Committee. SECTION J. A Statement of Conformance to the General Plan. SECTION K. The Environmental Impact Report. SECTION L. Report of the County Fiscal Officer. SECTION M. Neighborhood Impact Report. SECTION N. A Summary of the Commission’s Consultations with Affected Taxing Entities and a Response to Said Entities’ Concerns Regarding the Plan. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - II - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT The Reasons for Selection of the Project Area, lnduding a Description of Proposed Projects and How Such Projects Will Improve or Alleviate Blight This Section of this Report details the reasons for the selection of the Project Area. Redevelopment of the Project Area is desired to enable the Commission to: = Facilitate interim improvements at the Encina power generating facility to reduce the 46-year old Plant's environmental and economic impacts on the community; Accommodate the economically viable redevelopment of the Encina Plant into a smaller, more efficient power generating Plant; . Provide funding for the potential realignment of Carlsbad Boulevard which is currently being studied and could yield excess property that could facilitate public recreational facilities and improvements, including the expansion of the Carlsbad State Beach campgrounds, and; Promote the redevelopment of underutilized properties in the Ponto area. The Project Area is located within the City of Catisbad. The City is located along the Pacific Ocean in North San Diego County, approximately 10 miles south of the Camp Pendelton Marine Corps Base. The City is adjoined by the City of Oceanside to the north, the City of Encinitas to the south, the Pacific Ocean to the west, and the Cities of San Marcos and Vista to the east. As of January 1999, the State Department of Finance estimated the City's population at 77,600. The 555.5acre Project Area is generally bounded by the Pacific Ocean to the west, Interstate 5 to the east, the Agua Hedionda Lagoon to the north, and southern City limits to the south. Exhibit A-1 illustrates the boundaries of the Project Area: ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - A-1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT South Carlsbad Coastal Redevelopment Project Project Area Map Project Area Boundary For all redevelopment project areas established after January 1, 1984 or areas added to project areas after January 1, 1984, Section 33320.1 of the Redevelopment Law requires that such areas be “predominantly urbanized” meaning that not less than 80 percent of the land in the project area: 1) Has been or is developed for urban uses; 2) Is characterized by the existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership, or 3) Is an integral part of one or more areas developed for urban uses, which are surrounded or substantially surrounded by parcels which have been or are developed for urban uses. A total of 503.5 acres, or 90.63% of the Project Area, is urbanized. Urbanized areas include 471.24 acres (84.83%) that either have been or are currently developed and 32.46 acres (15.17%) that are integral of an urban area since they are immediately adjoined by developed parcels on at least three sides. Exhibit A-2 graphically depicts the location of urbanized and nonurbanized parcels in the Project Area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - A4 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT South Carlsbad Coastal Redevelopment Project Urbanization Map Has been or is developed for urban uses. Not developed for urban uses. Is an integral part of one or more areas developed for urban uses. Project Area Boundary In September 1997, the City of Carlsbad began to identify options to eliminate or reduce the environmental and visual impacts of the Encina Power Plant and to achieve more compatible land uses along its coastline. The Encina Power Plant, located at Carlsbad Boulevard and Cannon Road, began operation in 1954. The facility was expanded throughout the 1970s and consists of five steam boiler units fired by natural gas and oil, and an on-site combustion turbine. Total generating capacity of the facility is 951 megawatts; such capacity creates energy to provide electricity to nearly one million households. In November 1997, San Diego Gas and Electric (SDG&E) announced plans to auction the facility as California prepared to open up its electric utility industry to competition. In May 1999, SDG&E completed the sale of the facility, along with 253 megawatts of combustion turbine facilities to Dynegy Inc. and NRG Energy Inc. The Encina Power Plant is critical to the provision of power throughout the County because it is a designated “must-run” facility, meaning that it must be available to generate power during periods of peak demand, regardless of price and other factors. As the region experiences rapid growth, continued operation of Encina and other “must-run” facilities is even more essential to meet increased energy demanMemand for power that has already surpassed 1996 California Energy Commission projections for the year 2040, according to the San Diego Union Tribune. According to the operations vice president at the State’s Independent Systems Operations, a non-profit public corporation which manages and ensures equal electrical flow statewide, the County’s current energy systems will be unable to deliver power consistently by the year 2004. Among the tactics to expand power generating capabilities are to increase capacity and replace the Encina Plant with a more efficient facility. While increasing capacity to serve the San Diego County region, redevelopment of the existing Plant to a more efficient facility will also reduce emissions of harmful pollutants. Prior to SDG&E’s transfer of ownership, pollutant byproducts generated by the facility were subject to generally less stringent environmental limits than what is permitted today. The Air Pollution Control District (APCD) permitted the Plant‘s emissions to be measured in aggregate with other SDG&E facilities countywide. Had SDG&E retained ownership of Encina, the Plant would have been subject to a nitrogen oxide (NOx) limit of 1,100 tons per year until January 1, 2001, when the NOx limit would then have dropped to an estimated 417 tons per year. In addition, regulations stemming from the federal Clean Air Act of 1990 call for reduced emissions from power-generating facilities throughout the District. Specifically, these changes require operators of older facilities, like Cabrillo Power (the current operator of the Encina facility) to install emission control equipment that reduces NOx. There is a clause in APCD Rule 69 that requires the Encina boilers to meet an emission limit of 0.15 pounds per megawatt hour by January 1, ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION JUNE 27,2000 - A-5 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL 2001 if Encina is sold. As noted, Encina was sold in May 1999 to Cabrillo Power, at that time, City staff reports that emissions from Units 4 and 5 ranged between 0.50 and 0.70 pounds per megawatt hour, while emissions from the older Units 1, 2 and 3 ranged between 1.00 and 1.30 pounds per megawatt hour. Since assuming ownership of Encina, Cabrillo Power has initiated installation of low NOx burners on Units 4 and 5 that could reduce emissions to 0.30 to 0.31 pounds per megawatt hour, which is still double the permitted level of emissions. Under the current circumstances, Cabrillo Power will be required to ultimately retrofit all five of the Encina steam boiler units with Selective Catalytic Reduction (SCR) in order to meet the substantially reduced and more stringent APCD air emission standards. These new standards must be met by January 1, 2001 pursuant to APCD Rule 69. In recent APCD hearings, Cabrillo Power has been successful in its attempts to defer the necessary improvements to achieve the emission standards set forth by the APCD. Shortly aRer purchasing Encina, Cabrillo Power requested an extension for the timeframe to complete the installation of the SCR technology on all five units, from January 2001, to April 2003. The APCD agreed with this extension in order to accommodate Cabrillo’s purported time constraints for installation of the new required emission control technology (SCR). Cabrillo Power has requested Rule 69 of the APCD regulations be modified to remove the megawatt hour restrictions and require only an annual cap on emissions for all five units. Effectively, this would permit Cabrillo Power to avoid installation of the SCR technology on some (units 1, 2 & 3) if not all of the units (units I-5), and would generate a much higher level of pollutants (1.3 pounds versus 0.15 pounds per megawatt hour) when operational in peak demand periods. Because the peak demand occurs during summer months when the air quality is particularly susceptible to pollutants, release of this high level of NOx (1.3 tons per megawatt hour) would significantly worsen the air quality for surrounding residents in the most sensitive time (summer) of the year. According to the City’s air quality consultant, release of NOx into the air has been linked to a variety of health problems, including lung and eye irritation, and is a precursor to ozone formation. Although SCR retrofits to all five units would substantially reduce harmful air emissions, a more attractive alternative to the extended operation of the older units would be enabled by the proposed redevelopment project. By using the redevelopment project to facilitate the development of new, super-efficient replacement units instead of retrofitting the existing units, not only would greater air quality improvements be achieved, but also the process of decommissioning the existing Plant would be dramatically accelerated. The City’s air quality consultant estimates that a new facility would have the capacity to generate approximately 60% more power, with 30% less emissions, as compared to the existing facility with the SCR improvements. A replacement facility would be far more efficient than the existing facility, which is an incentive to Cabrillo Power. A replacement facility would be far more ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - A-6 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT aesthetically and geographically desirable than the existing facility, which is an incentive to the community. By working together through the redevelopment project, the Commission and Cabrillo Power can accelerate the replacement of the existing Plant with a new facility that is substantially more desirable to all parties . The cost of the interim SCR improvements could be as much as 580 million, while a new replacement facility of similar size could cost between $500 and $600 million, according to HMH Resources, the City's utility consultant. Given that Cabrillo Power has not yet recovered its initial investment in purchasing the existing facility, achieving this second alternative could be a hardship on Cabrillo Power for the foreseeable future. As a result, until Cabrillo Power is capable of financing the needed improvements, the City will be burdened by the continued operation of the existing facility. SCR improvements would reduce the air emissions to a more acceptable level. However, due to the substantial cost, these interim improvements could ultimately limit the complete redevelopment of the site and eliminate the most desirable action related to demolition of the existing plant and construction of a new, more operationally efficient and cleaner burning facility. The Commission could both hasten the timing of the Plant's replacement (from 20 to 25 years to perhaps 12 -15 years), while facilitating additional buffering to reduce the aesthetic impacts on surrounding residential and recreational uses through redevelopment. Through a public-private partnership, the Commission and Cabrillo Power can collectively work together to achieve a better, cleaner facility, more effectively than Cabrillo Power could without redevelopment. Also, redevelopment is sought to accommodate the redevelopment of the Ponto area. Specifically, the Commission aims to: Alleviate physical and economic blighting conditions; w Address incompatible land uses; w Promote economic development; and m Ensure the existence of adequate public infrastructure. Predominately commercial and industrial in character, the Ponto area encompasses intermixed residential properties. When the City annexed this residentially zoned area from the County in 1964, many of the incompatible industrial uses already existed, including a junk yard and a trash facility operated by Coast Waste Management. While the trash facility has since closed, the junk yard operation continues to store old automobiles, parts, and other debris. The junk yard and other industrial businesses not only have a detrimental effect on homes in the area because of traffic, fumes, noise and other impacts, but the presence of residences also prevent the area from being developed to its full economic potential. The Commission could potentially provide funds for ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - A-7 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT infrastructure and site improvements; funds may also be used for relocating incompatible uses to more suitable locations in the City. Revitalization efforts within the Ponto area may also include assisting property owners with structural improvements since many buildings appear to be obsolete. These buildings were constructed between the 1950s and 1970s and have outlived their economic use. A field inspection of this area identified several industrial businesses operating out of structures designed for single and multi family residential use. Also, the area is subdivided into smaller parcels (the median lot size of the parcels in the area is less than 8,800 square feet), which is inadequate to accommodate industrial uses. The small parcels do not provide space for adequate storage, parking, and loading areas found in even the most marginal industrial districts. In addition, the Ponto area has experienced a 26% decline in secured (land and improvement) values since 1995-96. Over the same time period, secured values in the Cities of Carlsbad, Encinitas, Oceanside, and Vista, as well as the overall County grew by over 18%. A major property owner in the Ponto area indicates that suspected hazardous contamination at a former junkyard and incompatible industrial uses discourage reinvestment. According to the Commission’s environmental consultant, Culbertson, Adams and Associates, Phase I environmental assessments -of several properties in the Ponto area would most likely result in recommendations to complete additional testing, including soil samples, asbestos and lead-based paint studies, due to the presence of the junk yard, nursery, metal fabricating shop, and older buildings in the Ponto area. Given the nature of these uses, it is likely that the area contains some hazardous contamination, according to the City’s Planning Director. Testing for and remediation of contamination in the Ponto area could be expensive, particularly since the area is designated for residential use that normally requires a higher level of remediation than other less sensitive uses. Upgrading the Ponto area will allow for the coordinated redevelopment of this area consistent with the City’s General Plan. Finally, redevelopment may also be used as a potential funding source for the needed Project Area infrastructure improvements, including off site improvements in the vicinity of the Encina Plant, Ponto Drive, and Carlsbad Boulevard. If approved by the City, the Carlsbad Boulevard project involves relocating the southbound lanes of this roadway eastward, to maximize the amount of public lands available for other uses. This project could also generate remnant properties that may be reused for additional recreational purposes to complement the adjacent Carlsbad State Beach. The Project Area is comprised of 43 parcels that the Commission is seeking to revitalize through a coordinated redevelopment effort. Section B of this Report describes the physical and economic blighting conditions found in the Project ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE Clpl COUNCIL JUNE 27.2000 - A-8 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Area. Blighting conditions that will need to be addressed within the Project Area include: Buildings in which it is unsafe and unhealthy to live and work, including defective and deteriorating structures in the Ponto Area; Existing older-generating facilities at the Encina Power Plant produce levels of NOx emissions which exceed those of new facilities, and are a major source of emissions controlled by the Air Pollution Control Board for San Diego County.; Factors hindering the economically viable use of Project Area properties, including obsolete and inefficient Power Plant facilities and undersized lots under multiple ownership in the Ponto area; Land use incompatibilities within the Ponto area that constrain development opportunities; Depreciated property values in the Ponto area, and impaired investments, due to the historic presence of uses containing hazardous materials in the Ponto area, as well as mixed character of uses within the Ponto area and economic constraints that prohibit conversion of the Encina Power Plant to a more efficient facility; Underutilized structures at the Encina power plant; and Inadequate public improvements throughout the Project Area. The Encina Power Plant is the largest stationary source of NOx emissions in San Diego County.. As one of the older generating Plants in the State, continued operation of the existing Encina facility, even with the SCR interim improvements, will not result in the removal or substantial upgrade of the Plants oldest units in terms of NOx emissions. As a result, the City's residents will continue to be subjected to elevated NOx emissions from these obsolete facilities, with no guarantee that Cabrillo Power can remove these units in the future due to economic concerns. In the Ponto area, efforts to rehabilitate properties to make them competitive are limited by the high cost of remodeling and retrofitting existing buildings. Poor economic and physical conditions place a burden on the community by reducing the City's ability to meet its goal of creating optimal land uses and development. Mitigating these deficiencies will require a highly concerted effort by both the community and private sector. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION JUNE 27,2000 - A-9 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL This Plan provides a list of infrastructure and public facilities projects, which could be implemented by the Commission. Additionally, the Commission will also employ resources to fund a variety of affordable housing, property rehabilitation, and economic development activities. A list of the redevelopment projects and programs anticipated by the Commission is provided as Table A-1 . As stated in Section E of this Report, the Project will allow the Commission to fund redevelopment implementation initiatives through project generated tax increment revenue. This revenue may be allocated to: I) Public Infrastructure and Facilities Improvements - $72 million 2) Commercial Rehabilitation and Economic Development Initiatives - $72 million 3) Housing Programs - $61 million Fund allocation to public infrastructure and facility improvement programs could be used to supplement City Capital Improvement Program funding and improve street, storm, drain, and sewer infrastructure within the Project Area. Furthermore, fund allocation for commercial rehabilitation and economic development incentives could result in high and best uses for Project Area properties and businesses. The Commission will allocate 20 percent of the project generated tax increment revenue to those activities that increase and improve the community’s supply of affordable housing. Redevelopment Law allows the Commission to expend these funds both inside and outside the Project Area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - A-I 0 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Housing Programs Increase and improve the community’s supply of affordable housing for very low, low, and moderate income households. Projects include, but are not limited to, the following: 1. Citywide Housing Programs: The Commission will invest housing set-aside funds into affordable housing rehabilitation and development projects throughout the City. Infrastructure Programs Improve pedestrian, bicycle, and vehicular traffic flows, upgrade utilities and drainage systems, enhance public safety, and promote recreational opportunities. Projects include, but are not limited to, the following: 1. 2. 3. 4. 5. 6. 7. Carlsbad Boulevard: Realign and construct sidewalks, gutters, and other road improvements from Manzano Drive to the Batiquitos Lagoon. Palornar Airport Road: Widen road and reconstruct existing overpasses from Carlsbad Boulevard to Avenida Encinas. Ponto DriveICarlsbad Boulevard Frontage Roads: Construct curbs, gutters, sidewalks, and street lights. Poinsettia Drive: Widen road and bridge from Carlsbad Boulevard to Avenida Encinas. Waterline Upsizing: Upsize approximately 560 feet of 6-inch waterline on Avenida Encinas near Cannon Road. Waterline Replacement: Replace approximately 2,500 feet of 1 0-inch waterline along Carlsbad Boulevard north of Palornar Airport Road. Waterline Installation: Install various line sizes along Carlsbad Boulevard. Public Facility Programs Develop and renovate community facilities that meet the needs of both the Project Area and City. Such projects include, but are not limited to, the following: I. Parks and Other Cultural and/or Recreational Facilities 2. Public Safety Facilities 3. Public Works Facilities Property Rehabilitation and Economic Development Programs Implement projects that result in the redevelopment of obsolete structures, cleanup zontaminated properties, consolidate irregular lots under mixed ownership, and facilitate Aevelopment of modem industrial, commercial, and utility facilities. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - A-1 1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT The Commission will undertake a comprehensive redevelopment program through implementing the Plan. The authorities and provision of the Plan have been developed to permit the Commission to enact redevelopment projects that target blighting conditions in the Project Area. The Commission will work with property and business owners to design and implement specific redevelopment initiatives. rn Community Development Proiects and Programs. These activities are designed to address blighting conditions by assisting business and property owners with rehabilitation, expansion, or acquisition activities. The Commission proposes to provide funds to assist in land acquisition and on- and off-site infrastructure improvements. As existing structures age, the Commission proposes to provide assistance over the life of the Plan to facilitate their rehabilitation. Such programs will enable the Commission to redevelop substandard properties in a manner consistent with the General Plan. These programs will allow the Commission to facilitate viable development of local and regional serving facilities in the Project Area. rn lnfiastructure and Public Facilities Improvements. Traffic and circulation improvements include those that have been identified in various City commissioned studies. Plan implementation will necessitate additional studies to identify additional infrastructure improvement needs. Housinn/Low and Moderate Income Assistance. Housing fund expenditures will assist the City in implementing the goals and programs set forth in the Commission’s Affordable Housing Compliance Plan and Housing Element of the City’s General Plan. Proposed affordable housing activities will enhance housing opportunities for very low, low, and moderate income households. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDNELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - A-12 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT A Description of the Physical and Economic Conditions Existing in the Project Area The Project Area contains both physical and economic blighting conditions that necessitate the creation of the Project. Conditions in the Project Area include: Buildings in which it is unsafe and unhealthy to live and work, including defective and deteriorating structures in the Ponto Area; Existing older-generating facilities at the Encina Power Plant produce levels of NOx emissions which exceed those of new facilities, and are a major source of emissions controlled by the Air Pollution Control Board for San Diego County.. Factors hindering the economically viable use of Project Area properties, including obsolete and inefficient Power Plant facilities and undersized lots under multiple ownership in the Ponto area; Land use incompatibilities within the Ponto area that constrain development opportunities; Depreciated property values in the Ponto area, and impaired investments, due to the historic presence of uses containing hazardous materials in the Ponto area, as well as mixed character of uses within the Ponto area and economic constraints that prohibit conversion of the Encina Power Plant to a more efficient facility; Underutilized structures at the Encina power plant; and Inadequate public improvements throughout the Project Area. This Section of the Report describes the findings of blight in the Project Area. Overall, 27 (63%) of the 43 urbanized parcels in the Project Area contain physically and/or economically blighted properties. Exhibit B-1 presents the geographic location of blight within the Project Area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - 6-1 - SOUTH CARLSEAD COASTAL REDEVELOPMENT PROJECT South Carlsbad Coastal Redevelopment Project Blight Map Encina Power Plant Area Abandoned buildings. Factors that prevent or substantially hinder the economically viable use or capacity of lots. Incompatible uses that prevent economic development. Stagnant property values and/or impaired investments. Older-generating facility which produces NOx emissions that exceed those of new power plants. Ponto Area Factors that prevent or substantially hinder the economically viable use or capacity of lots. Inadequate public improvements. Incompatible uses that prevent economic development. Stag nan t property values and/or impaired investments. Unsafe or unhealthy buildings for persons to live or work. Project Area Boundary Sections 33030 through 33039 of Redevelopment Law describe conditions that constitute blight in a redevelopment project area. A blighted area is one that necessitates the creation of a redevelopment project area, because the combination of conditions in an area constitute a burden on the community, and cannot be alleviated by private enterprise, governmental action, or both. A project area must have both physical and economic blighting conditions, as defined in Section 33031 (a) and (b), respectively: Physical blight includes the following: Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of a 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. Economic blight includes the following: Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - 8-3 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT 5) A high crime rate that constitutes a serious threat to the public safety and welfare. Section 33030(c) of the Redevelopment Law also states that a blighted area may be one that contains inadequate public improvements, facilities, or utilities when other blighting conditions are present. This section presents a detailed analysis of blighting conditions within the Project Area. The analysis is based upon a series of field inspections of the Project Area, discussions with City officials, Cabrillo Power officials, Project Area property owners and business tenants, and research and analysis of local and regional economic data. Appendix A to this Report includes photographs of some of the conditions in the Project Area. Encina Power Plant Existing Physical and Economic Conditions As discussed in Section A, the 46 year old Encina Power Plant will soon be undergoing interim retrofitting to reduce overall emissions to meet Air Pollution Control District (APCD) standards. However, at this time these improvements are not proposed to remove or significantly reconstruct the older, more noxious units (units 1, 2 & 3) at the Encina Plant. These units, while used only when peak demand warrants, have surpassed their useful life, and are far less efficient as compared to modern facilities. When operational, which is more intense during the summer months, pollutants emitted into the air include principally nitrogen oxide and carbon monoxide. The Encina power facility contains 5 main generating units constructed at various times over the past 46 years. These generating’units are not as efficient as state- of-the-art units, and generate more pollutants than modem generating Plants. Indeed, under today’s standards, a generating Plant solely relying on the design of the older units could not meet current pollution thresholds. However, unlike newer facilities, retrofitting the Encina Plant will cause Cabrillo Power to use more hazardous materials on-site (specifically ammonia) to reduce emissions. Presently, the Encina Power Plant is being operated in a manner which continues to significantly contribute to unhealthy air quality conditions within the community of Carlsbad and the surrounding areas . Under the 1990 federal Clean Air Act, air districts either had to work to achieve lower emissions to the Act‘s standards, or, in the instance of the County APCD, achieve a lesser reduction pursuant to Rule 69 Cabrillo Power received a variance from Rule 69 in October, 1999 from the APCD Hearing Board that delays by more than two years (from January 2001 to ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - 8-4 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT March 2003 on all five units) installation of the necessary selective catalytic reduction (SCR) equipment to reduce NOx emissions, and has submitted a formal request to the APCD to eliminate the per megawatt restricbons which could substantially reduce emissions during sensitive periods in the summer. In order to actively participate in the APCD hearings, the City retained Bill Powers an air quality consultant, to advise City staff on the technical aspects of the Plant‘s emissions. In his June 5, 2000 report to the City of Carlsbad, Mr. Powers indicated that without the 0.15 pounds per megawatt hour cap, “NOx emissions from the [Encina power] plant will be over five times higher during peak electricity demand ...g enerally between June and September of each year.” During a typical I2 hour peak generation period, actual NOx emissions from Encina are currently 8,500 pounds for all 5 boiler units, versus the 1,700 pounds under the stricter limits required by the existing Rule 69. (A copy of Mr. Powers report is enclosed as Appendix A to this Report) A copy of Mr. Powers report was forwarded to the APCD together with a cover letter from the City in response to the request to the APCD to amend Rule 69. The City remains concerned that an amendment to Rule 69 could have a negative long term impact on air quality for the Carlsbad community and surrounding area. Currently, without the stricter limitations on the Plant‘s emissions, a major opportunw to improve the summertime air quality in Carlsbad will be lost. Cabrillo Power is pursuing a course that raises concern with the City and its air quality expert because it potentially averts any change in the level of excessive emissions during sensitive peak operating periods. Even if Cabrillo Power did elect to comply with the installation of the SCR technology needed to bring emissions to current APCD standards, any future reductions in emission caps could render the Encina facility useless or inoperable, according to Greg Hughes, Plant Manager at Cabrillo Power. During a May 18, 2000 tour of the Encina Plant, Mr. Hughes indicated that SCR improvements would assist in bringing the Plant’s emissions to the lowest possible levels and help it meet current APCD standards. However, Mr. Hughes also stated that it is highly unlikely that the five boiler units could be modified further to reduce emission levels below the current proposed APCD caps without complete replacement of all five units. Thus, Mr. Hughes concluded that a new, more efficient plant would be needed in order to achieve any further reductions in emission standards beyond those established by Rule 69 today. Apart from these health impacts, operating the 46-year old Plant is not currently economically viable. Because of its obsolete design, the City’s utility consultant, HMH Resources, estimates the Encina Power Plant requires 50% more energy to generate the same level of power as a contemporary facility. Higher energy needs equate to more fuel usage and higher operational costs. According to the utility consultant, Cabrillo Power receives financial support from the Independent Systems Operator (ISO), a nonprofit public benefit corporation established under California electric industry deregulation legislation and charged with the oversight and management of the electricity transmission grid in the state. The utility consultant estimates that the IS0 subsidized approximately one-third of the ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - 8-5 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT annual operating revenue to Encina, roughly $30 million per year. As compared to the existing Encina facility, HMH Resources estimates that a new, state-of-the- art and more efficient facility would not need financial support from the ISO. Other conditions at the Encina facility include the existence of two abandoned oil storage facilities that are currently not being used according to the Encina Plant Manager. According to Encina’s Plant Manager, these two storage tanks would need repair and upgrades in order to be put into use again at a later date if required for operations. How Conditions are a Burden on the Community Encina adjoins residential neighborhoods, beaches, the Agua Hedionda Lagoon that are subjected to both the Plant’s emissions, as well as the units’ aesthetic impacts, as the 400 foot tall facility is clearly visible from single family homes, a public park, and Carlsbad State Beach. Per the Environmental Impact Report, prepared by Culbertson, Adams & Associates, various hazardous materials are used at the plant including petroleum fuels and water treatment chemicals, such as ammonia. Currently, NOx emissions are more than double the January 1, 2001 limits (0.15 pounds per megawatt hour) set forth by the APCD, subjecting the community to harmful affects of NOx on a daily basis, specifically during the summer months. According to the City’s air quality consultant, exposure to NOx can lead to lung and eye irritation, and NOx emissions are a precursor to even more serious ozone affects. Also, the Plant’s massive size is out of scale with the much lower profile character of the surrounding properties. Replacement of this Plant with a physically smaller, more efficient and cleaner burning facility would mitigate these environmental and visual impacts on the community. Why Conditions Cannot be Alleviated by Private Enterprise or Governmental Action In order to undertake improvements at the Encina Plant, Cabrillo Power needs to generate operating revenue that exceeds the costs to both operate the existing Plant and amortize the acquisition cost. An operating proforma prepared by HMH Resources estimates that the current operation is anticipated to require both a substantial level of IS0 assistance and corporate subsidy from other operations for the next 20 years. Over this time period, the operating proforma estimates that IS0 support for the Plant could reach $296 million, or 9.4% of the total operating budget over the twenty year period. According to the City’s utility consultant, these IS0 subsidies are not guaranteed, and can be terminated altogether with a 90 day notice. With IS0 support, after payment of operating and debt service costs, HMH Resources estimates that the Plant is currently operating at a 23.4% loss annually, or $769 million over the 20 ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - B-6 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT year period. Without the IS0 support, this loss could increase to 32.4% annually, or approximately $1.066 billion over a 20 year period.’ A summary of this “business as usual case” is presented below: Item With IS0 Support 20 Year Totals Without IS0 Support 20 Year Totals Revenues 2,799,377,226 85.2% 2,502,605,901 76.1% IS0 support Energy Sales 296,771,325 9.0% 0.0% 2,502,605,901 76.1% 2,502,605,901 76.1% Expenditures 3,287,518,623 100.0% 3,287,518,623 100.0% Fuel Operations Maintenance Adm instrative Insuranceflaxes 2,881,950,412 87.7% 2,881,950,412 87.7% 165,015,275 5.0% 165,015,275 5.0% 186,894,266 5.7% I 86,894,266 5.7% 26,820,814 0.8% 26,820,814 0.8% 26,837,856 0.8% 26,837,856 0.8% Operating Margin ’ (488,141,397) -14.8% , (784,912,722) -23.9% Financng Costs 281,763,511 8.6% 281,763,511 8.6% ProfitlLoss Marsin (769.904.908) -23.4% (1.066.676.2331 -32.4% Source: HMH Resouces, May 1999 The above analysis does not assume the SCR improvements are installed at the current facility. As indicated earlier, the cost of the SCR installation could be as much as $80 million. In their variance petition dated September 7, 1999, Cabrillo Power indicated that installation of the SCR technology as required by Rule 69 could not be achieved “without extreme hardship to its business and the people of San Diego County.. .I’ Cabrillo Power‘s petition also indicated that, based on their own analysis, the total cost of installing the SCR is “in excess of what would be normally be considered acceptable when compared to the NOx emissions achieved.. .” Based on Cabrillo Power‘s petition, it is evident that they believe that the cost of installing the SCR improvements is not financially viable. Cabrillo Power and the City, as well as the Environmental Health Coalition, share the same long-term desire to convert the Encina Power Plant to a new, physically smaller facility that both generates electricity more economically, and does not rely on half-century old generating equipment. However, achieving this objective is constrained by acquisition, operational, and interim improvement costs that ’ The proforma analysis prepared by HMH Resources. Inc., includes certain assumptions and estimates based on generally available industry information. Cabrillo Power has not provided or reviewed the assumptions or estimates used in the proforma. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - 8-7 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT prohibit Cabrillo Power from investing the $500 to $600 million needed to construct a new replacement facility. Discussions with Cabrillo Power representatives indicate that these financial constraints inhibit substantial capital investment for potentially the next 12 years, assuming the price of power can then support the needed improvements. By that time, some of the Encina units would be nearly 60 years old. Should the price of energy not generate sufficient capital to invest in a new facility, Cabrillo Power would need to defer construction of a replacement Plant indefinitely. Redevelopment can both hasten the development of a new power facility, and accommodate the City’s desires for a less obtrusive Plant. Through a joint partnership between the Commission and Cabrillo Power, the Commission can consider providing tax increment revenue to assist Cabrillo Power to underwrite on and off site costs associated with a new facility. A physically smaller replacement facility could generate the same level of power using 50% less energy, while reducing emissions to APCD requirements. Also, the Commission can consider assisting with hazardous materials remediation, demolition of existing improvements, and construction of new infrastructure. PontoArea Existing Physical and Economic Conditions The Ponto area comprises approximately 12 acres of the Project Area, and includes a variety of incompatible uses remaining after the City annexed this area in September 1964. Since annexation, the City has tried to address land use and environmental problems in this area stemming from the County’s land use policies that led to the blighting conditions still evident today. Blighting conditions in this area include buildings in which it is unsafe to work, mixed ownership of lots of irregular shape form and size, incompatible land uses, and impaired investments due to depreciated values and suspected hazardous contamination. These conditions are described below, as well as depicted in the photo survey contained in Appendix B. According to City staff, the Ponto area has been confronted with problems since annexation. Although designated and subdivided for residential uses, the area is contains many nonconforming industrial uses, including a former junk yard, kennel, and industrial service facilities, that date back prior to annexation. Because ownership is highly subdivided (12 different owners own the 23 parcels in this area) and the lot sizes are relatively small (median lot sizes are less than 8,800 square feet), rezoning this area into industrial use is not feasible. (Industrial developments today typically require at least one acre lot sizes to accommodate parking, loading, and storage.) As such, the nonconforming uses have been allowed to continue by the City’s’ zoning, but were not permitted to intensify or expand. The City’s efforts to mitigate and abate the land use problems (including illegal vehicle storage, nonpermitted uses, and illegal camping) have been stymied by the general unwillingness of property owners to file code enforcement reports on one another in this small area, according to the City’s Planning and Building Directors. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - B-8 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Indeed, part of the problem is that Ponto industrial uses that are characterized with unscreened storage, limited parking, substandard lot sizes, and inadequate loading areas that cannot be accommodated elsewhere in the City in their current condition. Thus, Ponto area enterprises would face higher costs associated with better facilities and larger, more suitable sites in other Carlsbad locations. Although many businesses would benefit from these improvements, these incompatible uses have remained in the Ponto area for years, and evidently do not have the resources to invest in larger, more suitable locations. Redevelopment, however, can assist these businesses afford to relocate to better areas, thereby removing land use incompatibilities in the Ponto area. The Ponto area is a highly subdivided area containing a variety of industrial, storage, and residential uses. The median lot size in this area is less than 8,800 square feet, sufficient for only residential use as permitted under the current zoning. (Many of these lots were reduced by more than one-third of their original size decades ago when Carlsbad Boulevard was widened.) However, only 5 of the 23 parcels in this area are developed with residential uses. Again, since the area’s multiple ownership and small parcel sizes are not suitable for industrial use, rezoning the area to industrial use is not feasible. Multiple ownership, coupled with the small size of these lots inhibits private redevelopment of this area to remove the incompatible uses. Ownership of the small 12-acre area is split among 12 different property owners; and 8 of the 12 owners own only one parcel. Consolidating these parcels to alleviate the mixed character of the area would be particularly complex and costly, since it is typically more expensive to acquire small parcels, especially when different property owners are involved. Given the constraints of multiple ownership and small lots, it is not surprising that the Ponto area has not yet recycled into a more compatible district. One of the problems of this area is that none of the various uses functions well. For the industrial uses, many are operating out of small buildings on lots subdivided for single-family residential use. Present industrial development standards typically call for lots of at least 40,000 square feet, or four times more than the Ponto area’s subdivision pattern. Other parcels contain storage uses, both open and enclosed; these uses do not have adequate screening from both the adjoining residential units and the Carlsbad Boulevard scenic corridor. Residential uses, for which this area was subdivided and designated, are surrounded by these incompatible uses. In total, 81 % of the Ponto area contains incompatible uses. In addition, another 8% of the area contains nonconforming industrial uses in this residentially designated area. Table B-2 provides a listing of the incompatible uses within the Ponto area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - B-9 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT PONTO DRIVE LAND USE BREAKDOWN SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Parcel Parcel Parcel Land Use Adjacent Incompatible General Size Uses Plan Desig (Ac.) Incompatible Parcels 1 214-160-04 0.24 2 214-160-05 0.17 3 214-160-06 0.15 4 214-160-13 0.97 5 214-160-20 0.20 6 214-160-24 2.75 7 214-160-25 1.52 8 214-160-27 0.18 9 214-160-28 0.92 10 214-160-29 0.91 11 214-160-34 0.13 12 214-160-35 0.14 13 214-160-36 0.16 14 214-160-19 0.91 Total area 9.35 81% Industrial Single Family Res. Single Family Res. IndustriaVSelf Storage Industrial Single Family Res. Kennel Res Lot. ParkingIStorage Res Lot. Res LoVRight of Way IndustriaVKennel Self Storage Single Family Res. Single Family Res. Self Storage Outdoor Storage Single Family Res. Industrial Res Lot. Res. Lot IndustriallSelf Storage Single Family Res. Self Storage Single Family Res. Self Storage Res. Lot ParkinglStorage acres of Ponto Dr. Parcels Residential Residential Resid en tial Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Breakdown of IncompatiblelCompatible Parcels, by 11% Acres /E Incompatible Parcels! 0 Compatible, but Nonconforming [?T1Compatible and I ~ Conforming I The City and Commission’s goal is to use redevelopment in the Ponto area to facilitate conversion of the area to uses consistent with the General Plan. Redevelopment tools would be essential to assist nonconforming uses relocate to more suitable facilities, mitigate hazardous contamination problems, and promote ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27. 2000 - E-10 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT the development of permitted uses, compatible with the area’s physical layout and ownership pattern Other problems found in this area include deferred maintenance, as indicated by widespread decay and physical neglect. RSG’s field survey identified that 50% of the buildings within the Ponto area were dilapidated or deteriorated. Examples of the physical conditions include a residence at 7204 Ponto Drive, characterized by peeling paint, damaged exterior building materials, a deteriorated roof, and exposed utilities, an aging and weathered industrial structure at 7250 Ponto Drive, and an industrial use at 7200 Ponto Drive, where damaged and rusted corrugated metal fencing is visible from surrounding properties. Many properties lack of adequate spacing for ingresdegress, on site parking, and storage. An example of this deficiency includes the limited width and egresdingress of the Ponto Drive frontage road. Properties along the road provide limited access points and parking for business patrons andlor employees. Other areas where access is a serious condition include the unimproved right-of- way between the railroad tracks and Ponto Drive. This private right-of-way lacks pavement, drainage and lighting, yet is the only means to access the parcels that do not front Ponto Drive. During rainy weather, the unpaved roadway may prohibit vehicular access. Impaired investments and depreciated property values also afflict Ponto area properties. RSG’s interviews with City staff and Ponto property owners indicate that there is a significant concern about hazardous contamination in the area, due to the junk and auto wrecking yard (APN 214-160-28), the closed Coast Waste Management yard (APN 214-160-04 through 214-160-21), and other older industrial uses in the area. The Planning Director indicates there is no evidence of any cleanup effort of the hazardous materials associated with Ponto area industrial uses. According to Dianne Bathgate of Culbertson, Adams, and Associates (the Commission’s environmental consultant) the existing and previous known land uses and age of the buildings in the area, will require additional environmental testing on an individual project basis before any development could proceed. In addition, because residential reuse of these properties requires a higher level of remediation than nonresidential uses, development of this area pursuant to the General Plan could be particularly costly and time consuming. Economic blight is also evident in the Ponto area, due to declining property values as shown by historic trends in assessed values over the past several years. Since fiscal year 1995-96, the total secured assessed value of the Ponto area has decreased by 26%. Over the same period, assessed values in the Cities of Carlsbad, Encinitas, Oceanside, and Vista, as well as the County of San Diego, have all appreciated between 18% and 51 %. These values indicate that despite its coastal location, Ponto area properties generally are not benefiting from the local or regional appreciation in secured assessed values experienced throughout the County. Table B-3 summarizes assessed value statistics for the Ponto area and other communities between 1995-96 and 1999-00, ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - 6-11 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT HISTORIC ASSESSED VALUE CHANGES PONTO AREA VS. CITY AND COUNTY Location FY 1995-96 Secured Value Ponto Dr. Area $4,012,474 City of Carlsbad 5,765,355,6 1 9 City of Oceanside 6,458,165,554 City of Encinitas 4,029,665,126 City of Vista 3,415,346,896 County of San Diego 132,042,481,093 FY 1999-00 Secured Value $2,981,957 a,7i 3,534,437 7,610,650,9a7 161,465,428,244 5,029,321,477 4,061,774,306 Total Change Value % ($1,030,517) -26% $2,94a,178,818 51% $1 ,I 52,485.433 18% $999,656,351 25% $646,427,4'10 19% $29,422,947,151 22% Source: San Diego County Assessment Roll Inadequate public improvements are also a problem that constrains redevelopment in the Ponto area. Prior to annexation in 1964, the County permitted development to occur in the Ponto area without complete public infrastructure, including inadequate storm drains, unpaved road surfaces, and sewer systems. While surrounding development outside the area assisted in providing improvements to the storm drain system, road and sewer system improvements are not expected without redevelopment, since many of the properties in the area are already developed, and the City cannot levy development fees to fund these improvements in previously improved areas. As a result, the Ponto area lacks paved roadways and relies on an antiquated septic system for sewage service. In order for redevelopment to proceed in the Ponto area, inadequate infrastructure will need to be addressed. How Conditions are a Burden on the Community As the Ponto area languishes in limbo between residential and nonconforming uses, residents in the area are subjected to noise, air, and congestion created by incompatible industrial and storage uses. These factors diminish its suitability to be used for residential use. Further, industrial businesses in this area would benefit from locating in developments designed to better accommodate their needs for parking, storage, and access, because they would enable the businesses to more effectively operate their businesses and would adjoin other industrial uses rather than more sensitive residential uses. The conditions in the area have stalled private efforts to redevelop the area for decades. RSG interviewed Mr. Lou Taschner, an attorney of property owner Dale Schreiber, who reported that development of his parcels was inhibited by the adjoining junk yard, as well as the proliferation of incompatible industrial uses in the area. Mr. Taschner went on to say that his client was very concerned about hazardous contamination, given the historic use of the area for auto wrecking, junk storage, and other industrial uses. As a result, Mr. Schriber's efforts to redevelop his property have been on hold since acquiring the property in 1972 ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - B-12 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT until the Crty can more proactively address the problems of nonconforming uses in the area and the inadequate infrastructure. Why Conditions Cannot be Alleviated by Private Enterprise or Governmental Action The City has attempted to address Ponto area blighting conditions with little success since annexing the area in 1964. For example, internal correspondence dating back to 1978 indicated that Ponto area properties have been a continuing problem for the City since annexation. The City has attempted to work with property owners to abate illegal uses and junk yard operations at this location, but the owners have been unable or unwilling to cooperate. The City’s attempts to regulate uses in the area are curtailed by constraints such as tall block walls (at least 8-feet in height) that surround parcels and create a situation where activities on site are not visible. Accessing properties such as these would require a search warrant initiated by a complaint signed by a local resident or property owner. Since Ponto area property owners are a small group of owners isolated from much of the City, many owners and residents are reluctant to file complaints with the Ctty and especially against each other. Property owners are discouraged from reinvesting in their properties, due to the mixed character of the area, small lot sizes, and substandard condition of the Ponto area. In other areas where these factors are not present, property owners have an economic incentive to invest in their property-namely to see its value appreciate. However, the Ponto area has not experienced a recycling of obsolete and substandard uses. In order for the area to develop as a residential area (pursuant to its designation under the General Plan), many parcels would need to be consolidated among several owners. Even if one property owner was to upgrade their property, there are no assurances that adjoining property owners will follow suit. As a result, the area continues to decline and property values are impaired. Clearly, the high costs involved in upgrading and rehabilitating existing structures and infrastructure have caused buildings to deteriorate to a state of disrepair. Removing blighting conditions will require a concerted effort by both the community and private sector. Given the fragile economic condition of the businesses and residents in this area, these efforts may include rehabilitation grants and loans. Neither entity acting alone possesses the ability or resources to remediate the blighting conditions of the Ponto area. Inadequate Public Improvements The Project Area is also characterized with substandard public facilities that may be addressed through implementation of a redevelopment program in the Project Area. A listing of the potential public facility/infrastructure projects is included in both the Plan, and Section A herein. Among these improvements is the potential realignment of Carlsbad Boulevard. This project would relocate the intersection of Carlsbad Boulevard and Palomar Airport Road to permit better vehicular circulation through the Project Area. In addition, this project would yield remnant ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - 8-13 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT properties adjoining Carisbad State Beach that may be redeveloped for recreational uses. Other pubic improvement needs in the Project Area include replacement of the septic system and road reconstiuction in the Ponto area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION JUNE 27,2000 - 8-14 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL Fiveyear Implementation Plan This Section presents the Five-Year Implementation Plan (“Implementation Plan”) for the Project. If the Redevelopment Plan is adopted by the City Council, then this Implementation Plan will guide the Commission as it implements specific redevelopment projects in the Project Area. If adopted, this Implementation Plan will be in place for the next five years (fiscal years 2000-01 to 2004-2005). Midway afier its adoption, the Commission must seek community input, and review and update this Implementation Plan. This Implementation Plan has been prepared pursuant to Section 33490 of the Redevelopment Law. Since 1994, every redevelopment agency has been required to prepare an implementation plan that outlines the projects and expenditures the agency will undertake to address blight in a redevelopment project area. Implementation plans are initially formulated and subsequently updated through a legally mandated process that incorporates extensive public input. The purpose is to inject more public input into the programs a redevelopment agency implements to address blight in a redevelopment project area. Pursuant to Sections 33352(c) and 33490 of the Redevelopment Law, this Impternentation Plan presents the following: The Commission’s major goals and objectives for the Project Area. The programs, projects, and estimated expenditures planned for the next five years. 0 An explanation of how the programs, projects and expenditures will achieve the Commission’s goals and eliminate blight in the Project Area. 0 An explanation of how the programs, projects, and expenditures will implement the affordable housing requirements of the Redevelopment Law and will increase, improve, and preserve the supply of housing affordable to very low, low, and moderate income households. Section 400 of the Plan delineates the Commission’s redevelopment goals and objectives for the Project Area. These goals and objectives, which are listed below, were employed to formulate the overall strategy for this Implementation Plan and will serve as a guide for the Commission’s activities during the next five years. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION JUNE 27,2000 - C-1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY OF COUNCIL Eliminating blight and environmental deficiencies in the Project Area. Assembling of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. Replanning, redesigning, and developing properties which are stagnant or improperly utilized. Increasing, improving, and preserving the community's supply of housing affordable to very low, low, and moderate income households. Developing new beach and coastal recreational opportunities. Facilitating the redevelopment of the Encina power generating facility 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 other recreational facilities, and/or development of cultural facilities or other public facilities. Retaining as many existing businesses as possible by means of redevelopment and rehabilitation activities. Enhancing commercial and recreational functions in the Project Area. Strengthening the economic base of the Project Area and the community by the installation of needed on- and off-site improvements to stimulate new commercialhdustrial expansion, employment, and economic growth. Increasing parking and open spaces amenities. Implementing performance criteria to assure quality site design environmental standards to provide unity and integrity to the entire Project Area development. The Project Area is being established to address conditions of physical and economic blight. Sections 33030 and 33031 of the Redevelopment Law define physical and economic blight as: ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27,2000 - (2-2,- SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Physical blight includes the following: Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. 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 area. The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. Economic blight includes the following: Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of Commission authority. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. 0 A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. Residential overcrowding or 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. The Law also provides that deficient public improvements may be identified as a blighting condition under circumstances including the presence of physical and economic blight. The Commission's goals and objectives and the programs and projects presented in this Implementation Plan are designed to alleviate and/or eliminate blight in the Project Area, as described in Section B of this Report. In general, they include the following: ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27,2000 - '2-3 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT UnsafdUnhealthy Buildings: Buildings in which it is unsafe and unhealthy to live and work, including defective and deteriorating structures in the Ponto Area; Existing oldergenerating facilities at the Encina Power Plant: These facilities produce levels of NOx emissions which exceed those of new facilities, and are a major source of emissions controlled by the Air Pollution Control Board for San Diego County.; Factors Hindering Viable Use: Factors hindering the economically viable use of Project Area properties, including obsolete and inefficient Power Plant facilities and undersized lots under multiple ownership in the Ponto area; Incompatible Uses: Land use incompatibilities within the Ponto area that constrain development opportunities Depreciated Valuedlmpaired Investments: Depreciated property values in the Ponto area, and impaired investments, due to the historic presence of uses containing hazardous materials in the Ponto area, as well as economic constraints that prohibit conversion of the Encina Power Plant to a more efficient facility; Abandoned Stwctures: Abandoned structures at the Encina power plant; and Inadequate Public Improvements: Inadequate public improvements throughout the Project Area. The following table presents a projection of revenues the Commission may have available over the next five years to fund the Implementation Plan activities. The projections are based on the financial analysis included in Section E of this Report. Table C-1 presents the annual projected gross tax increment receipts, low and moderate housing set-aside requirement, statutory payments to affected taxing entities, and the remaining net revenues allocated to non-housing projects. Over the first five years of the Plan, the Commission is anticipated to collect $765,679 in housing fund revenue and $2,297,037 million in non-housing fund revenue. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27.2000 - C-4 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT PROJECTED REVENUES FOR IMPLEMENTATION Fiscal Year Gross Tax Taxing Nonhousing Funds Housing Funds Increment Agency Revenue Payments Annual Cumulative Annual Cumulative 2000-0 1 2001 -02 608,254 128,300 364,953 364,953 121,651 121,651 2002-03 981,506 205,456 588,903 953,856 196,301 317,952 2003-04 1,055,222 223.313 633,133 1,586,989 21 1,044 528,996 2004-05 1,183,413 254,335 710,048 2,297,037 236,683 765,679 (No Revenue Received Until FY 2001-02) Source: Section E of Report to the City Council ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27,2000 - ‘2-5 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Project Area Master Plan Estimated Expenditures: sso0,OOO During the next 24 to 30 months, the Commission will undertake a comprehensive master planning effort to establish a consolidated implementation strategy for the entire Project Area. Since the Project Area will be only generating a limited level of resources in the initial years of the Plan, the master planning activity will provide a unique opportunity to organize and incorporate property owner input in the redevelopment program before projects are actually implemented. In this vein, the Commission will fund various planning and design studies, market analyses, seek property owner, resident and community input, and either establish or recommend that the City establish programs that implement the identified improvements. Commission Goals and Objectives to be Achieved Undertaking this program will enable the Commission to adopt a comprehensive design and vision for the redevelopment program, thereby advancing the community’s efforts towards eliminating blight and achieving the Commission’s goals set forth in the Redevelopment Plan. Completion of this program will achieve the following Commission goals and objectives: 0 0 0 e 0 0 0 0 0 e Eliminating blight and environmental deficiencies in the Project Area. Assembling of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. Replanning, redesigning, and developing properties which are stagnant or improperly utilized. Developing new beach and coastal recreational opportunities. Facilitating the redevelopment of the Encina power generating facility 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 other recreational facilities, and/or development of cultural facilities or other public facilities Enhancing commercial and recreational functions in the Project Area. Strengthening the economic base of the Project Area and the community by the installation of needed on- and off-site improvements to stimulate new commercial/industriaI expansion, employment, and economic growth. Increasing parking and open spaces amenities. Implementing performance criteria to assure quality site design environmental standards to provide unity and integrity to the entire Project Area development. ROSENOW SPEVACEK GROUP, INC. CARLSEAD HOUSING AND REDEVELOPMENT COMMISSION JUNE 27.2000 - C-6 - SOUTH CARLSEAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY OF COUNCIL Blighting Conditions Alleviated or Removed by Program This program will begin to address the following conditions of blight identified in the Project Area: UnsafdUnhealthy Buildings/Facilities Factors Hindering Viable Use Incompatible Uses Depreciated Values/lmpaired Investments Inadequate Public Improvements Public Infrastructure and Fad-@ Program Estimated mnditures: $1.5 million Following completion of the Master Planning effort, the Commission anticipates undertaking various public infrastructure projects that address existing deficiencies, which may include the Carlsbad Boulevard Realignment and improved access to and from the Ponto area, and improvements to the Ponto sewage system. Commission Goals and Objectives to be Achieved This program will construct public improvements that address substandard and inadequate public infrastructure. Improvements to Project Area infrastructure will achieve certain goals and alleviate blighting conditions in the Project Area. This program will achieve the following goals and objectives: Eliminating blight and environmental deficiencies in the Project Area. Assembling of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. Developing new beach and coastal recreational opportunities. Funding the Carlsbad Boulevard realignment which will yield excess property that could facilitate expansion of the Carlsbad State Beach campgrounds and other recreational facilities, and/or development of cultural facilities or other public facilities. Enhancing commercial and recreational functions in the Project Area. Strengthening the economic base of the Project Area and the community by the installation of needed on- and off-site improvements to stimulate new commercial/industriaI expansion, employment, and economic growth. Increasing parking and open spaces amenities. 0 Blighting Conditions Alleviated or Removed by Program i This program will address the following conditions of blight identified in the Project Area: ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION JUNE 27,2000 - C-7 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY OF COUNCIL Factors Hindering Viable Use Depreciated ValuesAmpaired Investments Inadequate Public Improvements Afhwdable Housing Program Estimated Expenditures: $750,000 During the first five years of the Plan, the Commission proposes to invest Project Housing Funds into existing Citywide housing programs. On May 16, 2000, the City Council and Commission adopted resolutions finding that such housing funds may be used outside the Project Area. Among the potential housing programs that may be funded include the following: First-time homebuyer programs New construction of affordable dwelling units Acquisition and rehabilitation of existing units Commission Goals and Objectives to be Achieved Affordable housing is an important component of the Commissions implementation strategy during the first five years of the Plan. By investing Project resources into existing Commission and City affordable housing endeavors, the Commission will be able to more efficiently achieve the goals and objectives: Increasing, improving, and preserving the community’s supply of housing affordable to very low, low, and moderate income households. Blighting Conditions Alleviated or Removed by Program Since funds are anticipated to be used primarily outside the Project Area, this program will not be eliminating blighting conditions. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27,2000 - C-8 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT The provisions of Section 33413(b)(4) of the Redevelopment Law require the Commission to adopt and periodically update a plan to ensure compliance with the existing criieria of Section 33413 of the Redevelopment Law regarding the affordability mix of new or rehabilitated housing units (“Housing Compliance Plan”). The Redevelopment Law further requires that this Housing Compliance Plan be prepared as part of the implementation plan required by Section 33490 of the Redevelopment Law. This Housing Compliance Plan must be consistent with the jurisdiction’s housing element and must also be reviewed and, if necessary, amended at least every five (5) years with either the housing element cycle or the implementation plan cycle. The following narrative addresses the following requirements pursuant to Section 33490(a)(2) (A) and (B) of the Redevelopment Law: 1. The amount of tax increment revenue that will be deposited in the Low and Moderate Income Housing Fund during each of the next five years. Table C-I indicates the annual projected housing fund revenues over the next five years. The projected deposits to the Housing Fund during the next five years will total approximately $765,000. 2. Estimates of the number of new, rehabilitated, or price-restricted units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years. The Commission has not yet identified or solicited property owner interest in affordable housing programs; as such, the Commission cannot accurately estimate the number of units that will be assisted in each of the coming five years. At this time, the Commission does not have any housing production obligations for this Project. There is no new housing construction or substantial rehabilitation occurring in the Project Area at this time. Thus, the Commission anticipates expending all of the Housing Fund monies during the coming five years on programs that either result in construction or rehabilitation of affordable housing units outside the Project Area throughout the City. Table C-1 presents a forecast of the annual deposits to the Housing Fund between 2000-01 and 2004-05. During the first five years of the Plan, the Commission estimates that approximately $765,000 cumulatively will be expended on these programs. 3. An estimate of the number of new, substantially rehabilitated or price- restricted residential units to be developed or purchased within the Project Area, both over the life of the Redevelopment Plan and during the next ten years. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27,2000 - C-9 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT No units are anticipated to be developed, rehabilitated, or price restricted during the next ten years, since the Commission is not aware of any housing proposals in the Project Area. Over the 30 year duration of the Redevelopment Plan, no units in the Project Area are anticipated to be substantially rehabilitated. Under the current General Plan, the Project Area could theoretically contain between 84 to 158 dwelling units, assuming the entire Ponto area is reused for residential use at permitted densities. 4. An estimate of the number of units of very low, low- and moderate-income households required to be developed within the Project Area in order to meet the requirements of Section 33413(b)(2) of the Redevelopment Law, both over the life of the Redevelopment Plan and during the next ten years. Assuming the Ponto area is reused entirely for residential use, a minimum of 15% of the units developed would need to be affordable (between 13 and 24 units) Of these affordable units, at least 5 to 9 units (40%) would need to be resewed for very low income households, pursuant to Section 3341 3(b)(2) of the Redevelopment Law. Although the Commission does not anticipate that these units will be developed within the next ten years, it is theoretically possible that these units could be created during the 30 year duration of the Redevelopment Plan. 5. The number of units of very low, low-, and moderate-income households which have been developed within the Project Area which meet the requirements of Section 3341 3(b)(2) of the Redevelopment Law. Because the proposed Plan is in the process of being adopted and the Project Area has not yet officially been created, this requirement does not apply. 6. An estimate of the number of Commission-developed residential units which will be developed during the next five years, if any, which will be governed by Section 33413(b)(l). The Commission does not anticipate developing or substantially rehabilitating any residential units itself during the next five years. 7. An estimate of the number of Commission-developed units for very low, low-; and moderate-income households which will be developed by the Commission during the next five years to meet the requirements of Section 33413(b)(l) of the Redevelopment Law. The Commission does not anticipate developing any residential units during the next five years. Therefore, the requirements of this section do not apply at this time. The following discussion contains the required components pursuant to Section 33490(a)(3) of the Redevelopment Law: ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY OF COUNCIL JUNE 27,2000 - C-10 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Pursuant to Section 33490(a)(3) of the Redevelopment Law, 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 Section 3341 3(a) of the Redevelopment Law, the Implementation Plan shall identify proposed locations suitable for those replacement dwelling units. The requirements of this section do not apply to this Implementation Plan because the Commission does not currently propose any projects that will result in the destruction or removal of dwelling units. However, in the event that this occurs, the Commission will provide replacement dwelling units in compliance with the requirements of Section 33413(a) of the Redevelopment Law. Means to Accompli Requirements The Commission intends to use revenue in the Low and Moderate Income Housing Fund and any other appropriate funds available to the Commission under the Plan, including, but not limited to, the Department of Housing and Urban Development funds and Community Development Block Grants, and rental subsidies through the Section 8 program. Where available, low income housing tax credits and tax exempt financing mechanisms may also be used by the Commission. Policies and programs such as providing affordable housing incentives for developers, permitting manufactured housing, and inclusionary housing programs will be explored by the Commission. The Commission may also provide rehabilitation loans and grants. Hdng Element Compliance This Housing Compliance Plan, like the Housing Element in the City's General Plan, focuses on providing suitable housing for City residents including lower income households and has been prepared according to guidelines established in the programs and goals outlined in the Housing Element of the General Plan. ROSENOW SPEVACEK GROUP, INC. JUNE 27,2000 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY OF COUNCIL - '2-1 1 - An Explanation of Why the Elimination of Blight Cannot be Accomplished by Private Enterprise Acting Alone or Through Other Financing Alternatives Other Than Tax Increment Financing As described in Section B of this Report, the Commission cannot rely on private enterprise acting alone to eliminate blight because the private sector -is constrained by numerous factors that inhibit investment. For Cabrillo Power, owner of Encina Power Plant, these factors include the reliance on an obsolete and inefficient Plant, that generates more pollution and requires more energy to operate than modem facilities today. The City’s utility consultant estimates that Cabrillo Power may be facing operating losses over $700 million over the next 20 years, assuming the price of power keeps pace with inflation. As a result of these operating revenue shortfalls, no funds are generated by the facility to fund major capital expenditures, such as development of a new replacement facility, or even the short-term installation of SCR technology to reduce emissions. Redevelopment can help address these conditions and issues by creating a partnership with Cabrillo Power and the Commission to facilitate the installation of improvements to reduce harmful emissions, with the long term goal of reconstructing a more efficient and physically smaller, cleaner burning power plant. For Ponto area property owners, several factors inhibit investment in the Project Area. These factors include mixed ownership patterns, existence of several incompatible and nonconforming industrial uses in this residentially zoned area, and the probability of hazardous contamination from auto wrecking and other industrial uses, including both the current and prior uses. These nonconforming uses in the Ponto area proliferate because there are no opportunities to locate these businesses elsewhere in the City and it is an affordable location. As a result, property owners of nonconforming uses have little incentive to redevelop their properties as long as the businesses function. For the few residential uses in the area, their fate remains in limbo because they adjoin these nonconforming and incompatible uses. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - E-1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Due to the lack of available private and public resources for redevelopment, the Commission will primarily rely on tax increment revenue to finance Project Area improvements. As discussed in Section B of this Report, Cabrillo Power has indicated that they do not have the resources to construct a new replacement Power Plant for at least the next 12 years, and probably much longer depending on the market price for power in the region. If the price of power does not escalate per Cabrillo Power's forecasts, the amount of capital funding could be reduced, and these improvements could be further delayed. Property owners in the Ponto area face different financial constraints. Due to the area's mixed character and preponderance of undersized lots under multiple ownership, Ponto area property owners do not have a financial incentive for redeveloping their properties. Given the substandard condition of the area, there is no realistic expectation that Ponto property values can support the substantial reinvestment needed without infusion of additional capital from outside the area. Finally, the City itself cannot underwrite the $205 million of redevelopment and housing needs in the Project Area. Currently, the City does not have funding in its capital improvement program to meet the proposed infrastructure projects for the Project Area, including the potential realignment of Carlsbad Boulevard. Increasing resources within this area through a special assessment district would only further burden property owners, residents and businesses with improvements that they currently are unable to afford. Consequently, tax increment revenue will be an essential funding source for redevelopment activities. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - E-2 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Methd of Financing and Economic Feasibility of the Plan Redevelopment of the Project Area is proposed to be financed with the following resources: 1) Financial assistance from the City, County, State of California and/or Federal Government; 2) Tax increment revenue; 3) Bonded debt; 4) Proceeds from lease or sale of Commission-owned property; 5) Loans from private financial institutions; and 6) Any other legally available source. The more typical sources of redevelopment financing that may be employed with the Project are described below. Financial Assistance frwn the City, County, State, amtlor the Fed4 Government The Commission may obtain loans and advances from the City for planning, construction, and operating capital for administration of the Project until such time that sufficient tax increment revenue is raised to repay loans and provide other means of operating capital. The City may also defer payments on Commission loans for land purchases, benefiting the Commission’s cash flow. Such assistance is anticipated to be employed to meet short-term cash flow needs, as the City’s General Fund cannot cany extensive levels of Commission debt at the risk of threatening the City’s own cash balances. As available, other funds such as state gas tax funds and federal Community Development Block Grants will be appropriately used to pay the costs of Project implementation. The Commission and City will also pursue other available grants and loans; additionally, the City or other public agencies may issue bonds on behalf of the Commission and provide in-kind assistance. Property Tax Increment The Commission may use property tax increment as provided for in Section 33670 of the Redevelopment Law, and is authorized in the Plan to employ tax ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO COUNCIL JUNE 27,2000 - E-1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT increment financing to underwrite Project costs. Tax increment revenue may only be used to pay indebtedness incurred by the Commission; indebtedness includes principal and interest on loans, monies advanced, or debts (whether funded, refunded, assumed, or otherwise) incurred by the Commission to finance or refinance, in whole or in part, redevelopment activities. Project tax increment revenues are distributed to address an array of obligations. As required by Section 33334.6 of the Redevelopment Law, twenty percent (20%) of Project tax increment revenue is deposited into the Housing Fund for the purposes of increasing, improving, and preserving the community’s supply of low and moderate income housing. The remaining 80% of the tax increment revenue will be used to pay for taxing entity obligations, debt service costs, and other program expenditures. Program expenditures include infrastructure, capital facility, and economic development programs within the Project Area. The Plan would feature specific time limits on the collection of tax increment revenue as required by Redevelopment Law. As stated in the Plan, the Commission may collect tax increment revenue for a period of 45 years following adoption of the ordinance adopting the Plan. Assuming the Plan is adopted during fiscal year 1999-00, the Commission would receive Project Area tax increment revenue through fiscal year 2044-45. Bonded Debt Under the Plan, the Commission would have a capacity to issue bonds and/or notes for any of its corporate purposes, payable in whole or in part from tax increment revenue. Many redevelopment agencies in the state employ bond financing as an integral component of their overall redevelopment-financing program. The Plan permits the Commission the ability to incur debt during the first 20 years of the Plan, and establishes a $100 million cumulative limit on the amount of bonded debt principal which may be outstanding at any one time. LeaseorSaleofCommissiorrOwnedPmperty The Commission may sell, lease, or otherwise encumber its property holdings to pay the costs of Project implementation. Participation in Development If the Commission enters into agreements with property owners, tenants, and/or other developers that provide for revenues to be paid or repaid to the Commission, such revenues may be used to pay Project implementation costs. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CIN COUNCIL JUNE 27,2000 - E-2 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Other Available Sources Any other loans, grants, or financial assistance from the federal government, or any other public or private source will be utilized, as available and appropriate. The Commission will also consider use of the powers provided by Chapter 8 (Redevelopment Construction Loans) of the Redevelopment Law to provide construction funds for appropriate projects. Where feasible and appropriate, the Commission may use assessment district and/or Mello-Roos bond financing to pay for the costs of public infrastructure, facilities, and operations. The primary source of project financing is anticipated to be tax increment revenue. Table E-I presents preliminary forecast of Project tax increment revenues, based on several assumptions noted below: 1999-00 Base Year Value: Assuming the Plan is adopted prior to July 20, 2000, the Project will collect tax increment revenues from increases in the Project Area assessed value over fiscal year 1999-00. In January 2000, the County Auditor-Controller delivered a report of the estimated base year value of the Project Area. The County's base year report estimated the total Project Area's base year value is $305,431,594. Assessed Value Growth Rates: RSG conservatively applied a 2% annual growth rate to forecast future assessed value increases in future years. In addition, as noted below, the projections incorporate specific development assumptions that further increase the Project Area's projected tax increment revenues. Development Assumptions: RSG incorporated various development assumptions into the revenue forecast. Since specific development proposals are not in place at this time, actual project scope and timing may vary significantly from what is included in this forecast. The specific projects included in the development assumptions are noted below: m Encina Power Plant improvements: The development assumptions assume that the sale of the Encina Plant in 1999 will increase its assessed value by approximately $25 million (from is current estimated value of $275 million to $300 million); this sale is assumed to be reflected on the 2000-01 assessment roll. In addition, RSG has assumed that $20 million of interim improvements to reduce catalytic emissions would be completed and applied to the 2002-03 assessment roll. Finally, the assumptions anticipate the full decommissioning and reconstnrction of a physically smaller, more efficient 2.3 billion kilowatt facility east of the Encina facility. It has been assumed that this facility, which would ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - E-3 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT increase the Plant's assessed value to $550 million (or by $230 million), will be completed and applied to the assessment roll beginning in fiscal year 2013-14. Other development assumptions: RSG also estimated the potential increases in assessed value that could be experienced upon the potential redevelopment of vacant and underutilized parcels within the Project Area. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - E4 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT - r' talYear Secure Local Potential New Incremental Gross Statutory Housing Redevelopment Cumulative Growth Assessed Value Value Tax Tax. Ag. Fund Fund (Net) Net Redev. Rate Value Increment Payments Fund BY 1999-00 1 2000-01 2 2001-02 3 2002-03 4 2003-04 5 2004-05 6 2005-06 7 2006-07 8 2007-08 9 2008-09 10 2009-10 11 2010-11 12 2011-12 13 2012-13 14 2013-14 15 2014-15 16 2015-16 17 2016-17 18 2017-18 19 2018-19 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 20 2019-20 2.0% 21 2020-21 2.0% 22 2021-22 2.0% 2022-23 2.0% 2023-24 2.0% 25 2024-25 2.0% 26 2025-26 2.0% 27 2026-27 2.0% 28 2027-28 2.0% 29 2028-29 2.0% 30 2029-30 2.0% 31 2030-31 2.0% 32 2031-32 2.0% 33 2032-33 2.0% 34 2033-34 2.0% 35 2034-35 2.0% 36 2035-36 2.0% 37 2036-37 2.0% 38 2037-38 2.0% 39 2038-39 2.0% 40 2039-40 2.0% 41 2040-41 2.0% 42 2041-42 2.0% 43 2042-43 2.0% 44 204344 2.0% 305,431,594 31 1,540,226 343,271,030 359,418,451 397,920,820 405,879,236 41 9,402,821 427,790,878 470,006,695 479,406,829 538,362,966 549,130,225 560,112,829 571,315,086 582,741,388 879,078,215 896,659,780 9 14,592,975 932,884,835 951,542,532 970,573,382 989,984,850 1,009,784,547 1,029,980,238 1,050,579,843 1,071,591,439 1,093,023,268 1,114,883,734 1,137,181,408 1,159,925,036 1,183,123,537 1,206,786,008 1,230,921,728 1,255,540,163 1,280,650,966 1,306,263,985 1,332,389,265 1,359,037,050 1,386,217,791 1,413,942,147 1,442,220,990 1,47 1,0654 1 0 1,500,486,718 1,530,496,452 1,561,106,381 25,000,000 9,100,000 30,700,000 5,300,000 33,000,000 48,400,000 279,100,000 46,939,436 84,686,857 92,489,226 105,747,642 113,971,227 155,359,284 164,575,101 222,375,235 232,931,372 243,698,631 254,681,235 265,883,492 556,409,794 573,646,621 591,228,186 609,161,381 627,453,241 646,110,938 665,141.788 684,553,256 704,352,953 724,548,644 745,148,249 766,159,845 787,591,674 809,452,140 831,749,814 854,493,442 877,691,943 901,354,414 925,490,134 950,108,569 97521 9,372 1,000,832,391 1,026,957,671 1,053,605,456 1,080,786,197 1 ,I 08,510,553 1,136,789,396 1,165,633,816 1,195,055,124 1,225,064,858 1,255.674.787 469,394 846,869 924,892 1,057,476 1,139,712 1,553,593 1,645,751 2,223,752 2,329,314 2,436,986 2,546,812 2,658,835 5,564,098 5,736,466 5,912,282 6,091,614 6,274,532 6,461,109 6,651,418 6,845,533 7,043,530 7,245,486 7,451,482 7,661,598 7,875,917 8,094,521 8,317,498 8,544,934 8,776,919 9,013,544 9,254,901 9,501,086 9,752,194 10,008,324 10,269,577 10,536,055 10,807,862 11,085,106 11,367,894 11,656,338 11,950,551 12,250,649 12,556,748 93,879 169,374 184,978 21 1,495 227,942 310,719 329,150 444,750 465,863 527,813 569,038 1,638,174 1,701,606 1,766,306 1,832,300 1,899,614 1,968,275 2,038,308 2,109,742 2,182,605 2,256,925 2,332,732 2,410,055 2,488,924 2,569,370 2,651,426 2,735,122 2,820,493 2,907,571 3,023,422 3,141,590 3,262,122 3,385,065 3,510,466 3,638,376 3,768,843 3,901,920 4,037,658 4,176,112 4,317,334 4,461,381 4,608,308 487,397 93,879 169,374 184,978 21 1,495 227,942 310,719 329,150 444,750 465,863 487,397 509,362 531,767 1,112,820 1,147,293 1,182,456 1,218,323 1,254,906 1,292,222 281,637 508,121 554,935 634,486 683,827 932,156 987,451 1,334,251 1,397,588 1,462,192 1,509,637 1,558,030 231 3,104 2,887,567 2,963,519 3,040;991 3,120,012 3,200,613 281,637 789,758 1,344,693 1,979,179 2,663,006 3,595,162 4,582,613 5,916,864 7,314,452 8,776,644 11,844,311 14,657,415 17,544,982 20,508,502 23,549,493 26,669,504 29,870,117 io,2a6,281 1,330,284 3,282,826 33,152,943 1,369,107 1,408,706 1,449,097 1,490,296 1,532,320 1,575,183 1,618,904 1,663,500 1,708,987 1,755,384 1,802,709 1,850,980 1,900,217 1,950,439 2,001,665 2,053,915 2,107,211 2,161,572 2,217,021 2,273,579 2,331,268 2,390,110 2,450,130 2.51 1,350 3,366,684 3,452,218 3,539,464 3,628,454 3,719,224 3,811,810 3,906,247 4,002,573 4,100,825 4,201,043 4,303,265 4,380,499 4,459,278 4,539,633 4,621,594 4,705,195 4,790,468 4,966,164 5,056,657 5,148,959 5,243,107 5,339,138 5,437.090 4,877,446 36,519,627 39,971,846 43,511,309 47,139,764 50,858,988 54,670,798 58,577,045 62,579,617 66,680,443 70,881,486 75,184,750 79,565,250 84,024,528 88,564,160 93,185,755 97,890,950 102,681,418 107,558,864 112,525,029 117,581,685 122,730,644 127,973,751 133,312,889 138.749.979 45 2044-45 2 0% 1,592,328,509 1,286,896,915 12,868,969 4,758,175 2,573,794 5,537,001 144,286,980 Cumulative Total 303,262,123 98,322,718 60,652,425 144,286,980 Net Present Value (7%) 54,637,153 16,065,684 10,927,431 27,644,038 I/ Accounts for only the 2% Proposition 13 Inflationary increase. 21 1999-00 base year value provided by County Auditor Controller PROJECTED TAX INCREMENT REVENUES SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT .-’ c,al Year Secure Local Potential New Incremental Gross Statutory Housing Redevelopment Cumulative Growth Assessed Value Value Tax Tax. Ag. Fund Fund (Net) Net Redev. Rate Value Increment Payments Fund BY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1999-00 2000-0 1 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-1 0 2010-11 2011-12 201 2-1 3 2013-14 2014-15 2015-16 2016-17 201 7-1 8 201 8-1 9 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 305,431,594 31 1,540,226 343,271,030 359,418,451 397,920,820 405,879,236 41 9,402,821 427,790,878 470,006,695 479,406,829 538,362,966 549,130,225 560,112,829 571,315,086 879,078,215 896,659,780 914,592,975 932,884,835 951,542.532 582,741,388 20 2019-20 2.0% 970,573[382 665,141,788 6,651,418 2,038,308 1,330,284 3,282,826 33,152,943 25,000,000 9,100,000 30,700,000 5,300,006 33,000,000 48,400;ooo 279,100,000 46,939,436 84,686,857 105,747,642 113,971,227 155,359,284 164,575,101 222,375,235 232,931,372 243,698,631 254,681,235 556,409,794 573,646,621 92,489,226 265,883,492 591,228,186 609,161,381 627,453,24 1 646,110,938 469,394 846,869 924,892 1,057,476 1,139,712 1,553,593 1,645,751 2,223,752 2,329,314 2,436,986 2,546,812 2,658,835 5,564,098 5,736,466 5,912,282 6,091,614 6,274,532 6,461,109 93,879 169,374 21 1,495 227,942 310,719 329,150 444,750 465,863 487,397 527,813 569,038 1,701,606 1,766,306 1,832,300 I 84,978. I ,638, I 74 I ,899,614 I ,968,275- 93,879 169,374 184,978 21 1,495 227,942 310,719 329,150 444,750 465,863 509,362 531,767 1 ,I 12,820 1,147,293 1,218,323 1,254,906 1,292,222 487,397 1,182,456 281,637 508,121 554,935 634,486 683,827 932,156 987,451 1,334,251 1,397,588 1,462,192 1,509,637 1,558,030 2,813,104 2,887,567 2,963,519 3,040;991 3,120,012 3,200,613 281,637 1,344,693 1,979,179 2,663,006 3,595,162 4,582,613 5,9 1 6,864 7,314,452 8,776,644 10,286,281 14,657,415 17,544,982 20,508,502 23,549,493 26,669,504 29,870,117 789,758 1 I ,844,~ I 21 2020-21 22 2021-22 2022-23 2023-24 25 2024-25 26 2025-26 27 2326-27 28 2027-28 29 2028-29 30 2029-30 31 2030-31 32 2031-32 33 2032-33 34 2033-34 35 2034-35 36 2035-36 37 2036-37 38 2037-38 39 2038-39 40 2039-40 41 2040-41 42 2041-42 43 2042-43 44 2043-44 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 989,984,850 1,009,784,547 1,050,579,843 1,071,591,439 1,093,023,268 1,114,883,734 1,137,181,408 1,159,925,036 1,183,123,537 1,206,786,008 1,230,921,728 1,255,540,163 1,306,263,985 1,332,389,265 1,359,037,050 1,386,217,79 1 1,413,942,147 1,442,220,990 1,471,065,410 1,530,496,452 1,561,106,381 I ,029,980,238 I ,280,650,966 I ,500,486,718 684,553,256 704,352,953 745,148,249 766.1 59,845 787,591,674 809,452,140 831,749,814 854,493,442 877,691,943 901,354,414 925,490,134 950.1 08,569 975,219,372 1,000,832,391 1,026,957,67 1 1,053,605,456 1,108,510,553 1,136,789,396 1,165,633,8 1 6 1,195,055,124 1,225,064,858 1,255,674,787 724,548,644 I ,oa0,786,197 6,845,533 7,245,486 7,451,482 7,875,917 8,317,498 7,043,530 7,661,598 8,091,521 8,544,934 8,776,919 9,013,544 9,254,901 9,752,194 10,008,324 10,269,577 10,536,055 11,085,106 11,367,894 11,656,338 11,950,551 12,250,649 9,501,086 10,807,862 12,556,748 2,109,742 2,256,925 2,332,732 2,410,055 2,488 I 924 2,569,270 2,651,426 2,735,122 2,820,493 2,907,571 3,023,422 3,141,590 3,262,122 331 0,466 2,182,605 3,385,065 3,638,376 3,768,843 4,037,658 4,461,381 4,608,308 3,901,920 4,1761 12 4,317,334 1,369,107 1,408,706 1,449,097 1,490,296 1,532,320 1,575,183 1,618,904 1,663,500 I ,708,987 1,755,384 I ,850,980 1,802,709 1,900,217 1,950,439 2,001,665 2,053,915 2,107,211 2,161,572 2,217,021 2,273,579 2,331,268 2,390,110 2,450,130 2,511,350 3,366,684 3,452,218 3,539,464 3,628,454 3,7 19,224 3,811,810 3,906,247 4,002,573 4,201,043 4,303,265 4,459,278 4,539,633 4,621,594 4,705,195 4,877,446 4,966,164 5,056,657 5,243,107 5,437,090 4,100,825 4,380,499 4,790,468 5, I 48,959 5,339,138 36,519,627 39,971,846 43,511,309 47,139,764 50,858,988 54,670,798 58,577,045 62,579,617 66,680,443 70,881,486 75,184,750 79,565,250 84,024 ~ 528 88,564, I 60 97,a90,950 107,558,864 I 17,581,685 133,312,889 93,185,755 102,681,418 112,525,029 122,730,644 127,973,751 138,749,979 45 2044-45 2.0% 1,592,328,509 1,286,896,915 12,868,969 4,758,175 2,573,794 5,537,OO 1 144,286,980 Cumulative Total 303,262,123 98,322,718 60,652,425 144,286,980 Net Present Value (7%) 54,637,153 16,065,684 10,927,431 27,644,038 I/ Accounts for only the 2% Proposition 13 inflationary increase. 2/ 1999-00 base year value provided by County Auditor Controller Over the 45-year period within which the Commission may collect tax increment revenue, RSG’s estimates that approximately $303 million of gross tax increment revenue could be generated by the Project Area. Of this amount, 20%, or $61 million, would be deposited into the Commission’s Housing Fund, and the remaining 80%, or $242 million, would be available to the Nonhousing Fund. The Commission would be required to share a portion (projected to be approximately $98 million) of its Nonhousing Fund revenues with the affected taxing agencies pursuant to Section 33607.5 of the Redevelopment Law (“Statutory Payments”). These Statutory Payments would start in the first fiscal year the Commission would receive tax increment revenue from the Project Area (assumed to be fiscal year 2001-02). According to Section 33607.5 of the Law, beginning in the payment first year, the Statutory Payments are equal to 25% of the Project‘s annual nonhousing tax increment revenue in excess of amounts received in the prior year. These Statutory Payments are subject to two subsequent increases. The first increase in Statutory Payments would take effect in the payment eleventh year, when the Commission would be required to pay 21% of the incremental increase in nonhousing tax increment revenues exceeding amounts in the tenth payme-nt year. The Law further provides for a second increase in the Statutory Payments that commences in the thirty-first payment year of 14% of the incremental increase in nonhousing tax increment revenues in excess of the thirtieth year. In total, the Commission will share approximately 32% of its Nonhousing Fund revenues with the affected taxing agencies. The actual amount of the Statutory Payments will vary based on the amount of tax increment revenues collected by the Commission each year. A forecast of Statutory Payments has been included on Table E-I. Should actual tax increment revenues exceed or fall below these projections, actual Statutory Payments would be higher or lower. Each taxing agency is entitled to their respective share of the Statutory Payment. All agencies receive their share of the Statutory Payments, except for the City of Carlsbad, which, by Section 33607.5, is only entitled to its,share of the first 25% of the Statutory Payments. The following is a list of affected taxing agencies in the Project Area, according to the County’s January 2000 base year report: I) San Diego County General Fund 2) Greater San Diego County Resource Conservation 3) Carlsbad Unified Schools 4) Mira Costa Community College, currently a basic-aid district that is entitled to both their share of the Statutory Payments, plus additional revenues provided under Section 33676(b) of the Redeployment Law. 5) County Schools ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSlNG AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 * - E-6 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT 6) City of Carlsbad 7) Tri-City Hospital 8) Leucadia County Water District 9) Municipal Water District IO) County Water Authority Section E of this Report includes a preliminary list of potential infrastructure/public facility projects in the Plan and other potential programs proposed by the Commission. The total estimated cost of these projects and programs is approximately $205 million, including direct project costs and financing costs. RSG projects that the Commission will have approximately $205 million of' housing ($61 million) and nonhousing ($144 million) tax increment revenues available to fund these activities. Should tax increment revenues fall below or exceed projections, the Commission will alter implementation activities accordingly. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - E-7 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT The Method of Relocation In conjunction with the adoption of the Plan, the Commission prepared and circulated Relocation Guidelines, consisting of the State Relocation Law (Government Code 7260 through 7277), and the California Relocation Assistance and Real Property Acquisition Guidelines as established in the California Code of Regulation, Title 25, Chapter 6 (“State Guidelines”). (Copies of the State Relocation Law and State Guidelines, in effect as of this date, follow this page.) The Commission does not anticipate that implementation of the Project will result in the relocation of businesses, residents, or local community institutions. If relocation is necessary, the Relocation Guidelines ensure that the Commission will meet its relocation. responsibilities to any families, persons, or nonprofit local community institutions to be temporarily or permanently displaced as .a consequence of the Plan’s implementation. No persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacements. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - F-1- SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT State Relocation Law (Government Code 7260 through 7277) ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - F-2 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Government Code, Sections 7260-7277 Chapter 16. Relocation Assistance 7260. As used in this chapter: (a) "Public entity" includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use and any person who has the authority to acquire property by eminent domain under state law. (b) "Person" means any individual, partnership, corporation, limited liability company, or association. (c) (1) "Displaced person" means both of the following: (A) Any person who moves from real property, or who moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire, or the acquisition of, the real property, in whole or in part, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity (ii) As a direct result of the rehabilitation, demolition, or other displacing activity, as the public entity may prescribe under a program or project undertaken by a public entity, of real property on which the person is a residential tenant or conducts a business or farm operation, if the public entity determines that the displacement is permanent. For purposes of this subparagraph, "residential tenant" includes any occupant of a residential hotel unit, as defined in subdivision (b) of Section 50669 of the Health and Safety Code, and any occupant of employee housing, as defined in Section 17008 of the Health and Safety Code, but does not include any person who has been determined to be in unlawful occupancy of the displacement dwelling. (B) Solely for the purposes of Sections 7261 and 7262, any person who moves from real property, or moves his or her personal property from real property, either: (i) As a direct result of a written notice of intent to acquire, or the acquisition of, other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by a public entity. (ii) As a direct result of the rehabilitation, demolition, or other displacing activity as the public entity may prescribe under a program or project undertaken by a public entity, of other real property on which the person conducts a business or farm operation, in any case in which the public entity determines that the displacement is permanent. (2) This subdivision shall be construed so that persons displaced as a result of Page1 of 19 public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for, or in connection with, a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. Except for persons or families of low and moderate income, as defined in Section 50093* of the Health and Safety Code, who are occupants of housing that was made available to them on a permanent basis by a public agency and who are required to move from the housing, a "displaced person" shall not include any of the following: (A) Any person who has been determined to be in unlawful occupancy of the displacement dwellings. (B) Any person whose right of possession at the time of moving arose after the date of the public entity's acquisition of the real property. (C) Any person who has occupied the real property for the purpose of obtaining assistance under this chapter. (D) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant of the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project. (d) "Business" means any lawful activity, except a farm operation, conducted for any of the following: (1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property. (2) Primarily for the sale of services to the public. (3) Primarily by a nonprofit organization. (4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted. (e) "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (f) "Affected property" means any real property that actually declines in fair market value Page 2 of 19 because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity. (g) "Public use" means a use for which real property may be acquired by eminent domain. (h) "Mortgage" means classes of liens that are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (i) "Comparable replacement dwelling" means any dwelling that is all of the following: (1) Decent, safe, and sanitary. (2) Adequate in size to accommodate the occupants. (3) In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, does not exceed 30 percent of the person's average monthly income, unless the displaced person meets one or more of the following conditions, in which case the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person, shall not exceed 25 percent of the person's average monthly income: (A) Prior to January 1, 1998, the displaced person received a notice to vacate from a public entity, or from a person having an agreement with a public entity. (B) The displaced person resides on property that was acquired by a public entity. or by a person having an agreement with a public entity, prior to January 1, 1998. (C) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, initiated negotiations to acquire the property on which the displaced person resides. (D) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, entered into an agreement to acquire the property on which the displaced person resides. (E) Prior to January 1, 1998, a public entity, or a person having an agreement with a public entity, gave written notice of intent to acquire the property on which the displaced person resides. (F) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, Page3 of 19 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter. (G) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter. (H) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation commitree, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, pursuant to this chapter and the regulations adopted pursuant to this chapter, and the person is eventually displaced by the project covered in the proposed relocation plan. (I) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by a public entity, or by a person having an agreement with a public entity, prior to January 1998. , (J) The displaced person resides on property where an owner participation agreement, or other agreement between a public entity and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides information to the public entity, or person having an agreement with the public entity showing that he or she did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement. (4) Compara6le with respect to the number of rooms, habitable space, and type and quality 'of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features, shall be present. (5) In an area not subject to unreasonable adverse environmental conditions. (6) In a location generally not less desirable than the location of the displaced persons dwelling with respect to public utilities, facilities, services, and the displaced person's place of employment. (i) "Displacing agency" means any public entity or person carrying out a program or project which causes a person to be a displaced person for a public project. (k) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. Page 4 of 19 (1) "Small business" means a business as defined in Part 24 of Title 49 of the Code of Federal Regulations. (m) "Lead agency" means the Department of Housing and Community Development. 7260.5. (a) The Legislature finds and declares the following: (1) Displacement as a direct result of programs or projects undertaken by a public entity is caused by a number of activities, including rehabilitation, demolition, code enforcement, and acquisition. (2) Relocation assistance policies must provide for fair, uniform, and equitable treatment of all affected persons. (3) The displacement of businesses often results in their closure. (4) Minimizing the adverse impact of displacement is essential to maintaining the. economic and social well-being of communities. (5) Implementation of this chapter has resulted in burdensome, inefficient, and inconsistent compliance requirements and procedures which may be improved by establishing a lead agency. (b) This chapter establishes a uniform policy for the fair and equitable treatment of persons displaced as a direct result of programs or projects undertaken by a public entity. The primary purpose of this chapter is to ensure that these persons shall not suffer disproportionate injuries as a result of programs and projects designed for the benefit of the public as a whole and to minimize the hardship of displacement on these persons. (c) The Legislature intends all of the following: (1) Public entities shall carry out this chapter in a manner which minimizes waste, fraud, and mismanagement and reduces unnecessary administrative costs. (2) Uniform procedures for the administration of relocation assistance shall, to the maximum extent feasible, assure that the unique Circumstances of any displaced person are taken into account and that persons in essentially similar circumstances are accorded equal treatment under this chapter. (3) The improvement of housing conditions of economically disadvantaged persons under this chapter shall be undertaken, to the maximum extent feasible, in coordination with existing federal, state, and local government programs for accomplishing these goals. (4) The policies and procedures of this chapter shall be administered in a manner which Page 5 of 19 is consistent with fair housing requirements and which assures all persons their rights under Title VI11 of that act of April 11, 1968 (Public Law 90-284), commonly known as the Civil Rights Act of 1968 and Title VI of the Civil Rights Act of 1964. 7260.7. Notwithstanding any other provision of law, in furtherance of the goal set forth in paragraph (3) of subdivision (c) of Section 7260.5, nonprofit facilities subsidized pursuant to any federal or state program for the benefit of low-income tenants that restrict rent increases based on operating cost increases, and that also receive state funds for renovation and rehabilitation involving the temporary relocation of those tenants, shall be exempt from any restrictions on rents imposed pursuant to this chapter. 7261. (a) Programs or projects undertaken by a public entity shall be planned in a manner that (1) recognizes, at an early stage in the planning of the programs or projects and before the commencement of any actions which will cause displacements, the problems associated with the displacement of individuals, families, businesses, and farm operations, and (2) provides for the resolution of these problems in order to minimize adverse impacts on displaced persons and to expedite program or project advancement and completion. The head of the displacing agency shall ensure the relocation assistance advisory services described in subdivision (c) are made available to all persons displaced by the public entity. If the agency determines that any person occupying property immediately adjacent to the property where the displacing activity occurs is caused substantial economic injury as a result thereof, the agency may make the advisory services available to the person. (b) In giving this assistance, the public entity may establish local relocation advisory assistance offices to assist in obtaining replacement facilities for persons, businesses, and farm operations which find that it is necessary to relocate because of the acquisition of real property by the public entity. (c) This advisory assistance shall include those measures, facilities, or services which are necessary or appropriate to do all of the following: (1) Determine and make timely recommendations on the needs and preferences, if any, of displaced persons for relocation assistance. (2) Provide current and continuing information on the availability, sales prices, and rentals of comparable replacement dwellings for displaced homeowners and tenants, and suitable locations for businesses and farm operations. (3) Assure that, within a reasonable time period prior to displacement, to the extent that it can be reasonably accomplished, there will be available in areas not generally less desirable in regard to public utilities and public and commercial facilities, and at rents or prices within the financial means of displaced families and individuals, decent, safe, and sanitary dwellings, sufficient in number to meet the needs of, and available to, those displaced persons requiring those dwellings and reasonably accessible to their places of employment, except that, in the case of a federally funded project, a waiver may be obtained from the federal government. Page6of 19 (4) Assure that a person shall not be required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling, except in the case of any of the following: (A) A major disaster as defined in Section 102(2) of the federal Disaster Relief Act of 1974. (B) A state of emergency declared by the President or Governor. (C) Any other emergency which requires the person to move immediately from the dwelling because continued occupancy of the dwelling by the person constitutes a substantial danger to the health or safety of the person. (5) Assist a person displaced from a business or farm operation in obtaining and becoming established in a suitable replacement location. (6) Supply information concerning other federal and state programs which may be of assistance to those persons in applying for assistance under the program. (7) Provide other advisory services to displaced persons in order to minimize hardships to those persons. (d) The head of the displacing agency shall coordinate its relocation assistance program with the project work necessitating the displacement and with other planned or proposed activities of other public entities in the community or nearby areas which may affect the implementation of its relocation assistance program. (e) Notwithstanding subdivision (c) of Section 7260, in any case in which a displacing agency' acquires property for a program or project, any person who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project, shall be eligible for advisory services to the extent determined by the displacing agency. 7261.5. In order to prevent unnecessary expenses and duplications of functions, and to promote uniform and effective administration of relocation assistance programs for displaced persons under this chapter, a public entity may enter into a contract with any individual, firm, association, or corporation for services in connection with such program, or may carry out its functions under this chapter through any federal, state, or local governmental agency having an established organization for conducting relocation assistance programs. Any public entity may, in carrying out its relocation assistance activities, utilize the services of state or local housing agencies or other agencies having experience in the administration or conduct of similar housing assistance activities. 7262. (a) Whenever a program or project to be undertaken by a public entity will result in Page7of 19 the displacement of any person, the displaced person is entitled to payment for actual moving and related expenses as the public entity determines to be reasonable and necessary, including expenses for all of the following: (1) Actual and reasonable expenses in moving himself or herself, his or her family, business, or farm operation, or his or her, or his or her family's, personal property. (2) Actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate the property, as determined by the public entity. (3) Actual and reasonable expenses in searching for a replacement business or farm, not to exceed one thousand dollars ($1,000). (4) Actual and reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site, but not to exceed ten thousand dollars ($10,000). (b) Any displaced person eligible for payments under subdivision (a) who is displaced from a dwelling and who elects to accept the payments authorized by this subdivision in lieu of the payments authorized by subdivision (a) shall receive a moving expense and dislocation allowance which shall be determined according to a schedule established by the head of the lead agency. The schedule shall be consistent with the Residential Moving Expense and Dislocation Allowance Payment Schedule established by Part 24 of Title 49 of the Code of Federal Regulations. (c) Any displaced person who moves or discontinues his or her business or farm operation and elects to accept the payment authorized by this subdivision in lieu of the payment authorized by subdivision (a), shall receive a fixed relocation payment in an amount equal to the average annual net earnings of the business or farm operation, except that the payment shall not be less than one thousand dollars ($1,000) nor more than twenty thousand dollars ($20,000). In the case of a business, no payment shall be made under this subdivision, unless the public entity is satisfied that the business cannot be relocated without substantial loss of patronage and is not part of a commercial enterprise having at least one other establishment not being acquired, engaged in the same or similar business. For purposes of this subdivision, the term "average annual net earnings" means one-half of any net earnings of the business or farm operation before federal, state, and local income taxes during the two taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property being acquired, or during any other period as the public entity determines to be more equitable for establishing earnings, and includes any compensation paid by the business or farm operation to the owner, his or her spouse, or his or her dependents during the two-year or other period. To be eligible for the payment authorized by this subdivision, the business or farm operation shall make available its state income tax records, financial statements, and accounting records, for confidential use pursuant to an audit to determine the payment pursuant to this subdivision. In regard to an outdoor advertising display, payment pursuant to this subdivision shall be limited to the amount necessary to physically move, or replace that display. Any displaced person eligible for payments under subdivision (a) who is displaced from the person's place of business or farm operation and who is eligible under criteria established Page8of 19 by the public entity, may elect to accept a fixed payment in lieu of the payment authorized by subdivision (a). The fixed payment shall not be less than one thousand dollars ($1,000) nor more than twenty thousand dollars ($20,000). A person whose sole business at the displacement dwelling is the rental of the property to others shall not qualify for a payment under this subdivision. ' the person conducting the business or farm operation to move from other real property, or to move his or her personal property from other real property, the person shall receive payments for moving and related expenses under subdivision (a) or (b) and relocation advisory assistance under Section 7261 for moving from the other property. (d) Whenever the acquisition of real property used for a business or farm operation causes (e) Whenever a public entity must pay the cost of moving a displaced person under paragraph (1) of subdivision (a), or subdivision (d): (1) The costs of the move shall be exempt from regulation by the Public Utilities Commission. (2) The public entity may solicit competitive bids from qualified bidders for performance of the work. Bids submitted in response to the solicitations shall be exempt from regulation by the Public Utilities Commission. (f) No provision of this chapter shall be construed to require a public entity to provide any relocation assistance to a lessee if the property acquired for a program or project is subject to a lease for purposes of conducting farm operations and the public entity agrees to assume all of the terms of that lease. 7262.5. Notwithstanding Section 7265.3 or any other provision of law, tenants residing in any rental project who are displaced from the project for a period of one year or less as part of a rehabilitation of that project, that is funded in whole or in part by a public entity, shall not be eligible for permanent housing assistance benefits pursuant to Sections 7264 and 7264.5 if all of the following criteria are satisfied: (a) The project is a "qualified affordable housing preservation project," which means any complex of two or more units whose owners enter into a recorded regulatory agreement, having a term for the useful life of the project, with any entity for the provision of project rehabilitation financing. For this purpose, the regulatory agreement shall require of the owner and all successors and assigns of the owner, as long as the regulatory agreement is in effect, that at least 49 percent of the tenants in the project shall have, at the time of the recordation of the regulatory agreement, incomes not in excess of 60 percent of the area median income, adjusted by household size, as determined by the appropriate agency of the state. In addition, a project is a qualified affordable housing preservation project only if the beneficiary of the regulatory agreement elects this designation by so indicating on the regulatory agreement. in the same complex if his or her original unit is not otherwise available due to the rehabilitation, (b) The resident is offered the right to return to his or her original unit, or a comparable unit Page9of 19 with rent for the first 12 months subsequent to that return being the lower of the following: up to 5 percent higher than the rent at the time of displacement; or up to 30 percent of household income. (c) The estimated time of displacement is reasonable, and the temporary unit is not unreasonably impacted by the effects of the construction, taking into consideration the ages and physical conditions of the members of the displaced household. (d) All other financial benefits and services otherwise required under this chapter are provided to the residents temporarily displaced from their units, including relocation to a comparable replacement unit. Residents shall be temporarily relocated to a unit within the same complex, or to a unit located reasonably near the complex if that unit is in a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities, services, and the displaced person's place of employment. [Section 3 of Chapter 422 of the Statutes of 1998, provides as follows: The amendment to Section . . . 7262.5 of the Government Code made by this act shall apply prospectively only from January 1, 1999, and only to the extent that its provisions would not adversely affect existing rights of persons or households entitled to benefits under existing provisions on or before December 31, 1998.1 7263. (a) In addition to the payments required by Section 7262, the public entity, as a part of the cost of acquisition, shall make a payment to the owner of real property acquired for public use which is improved with a dwelling actually owned and occupied by the owner as a permanent or customary and usual place of abode for not less than 180 days prior to the initiation of negotiation for the acquisition of that property. (b) The payment, not to exceed twenty-two thousand five hundred dollars ($22,500), shall be based on the following factors: (1) The amount, if any, which, when added to the acquisition cost of the dwelling acquired by the public entity equals the reasonable cost of a comparable replacement dwelling. (2) The amount, if any, which will compensate the displaced owner for any increased interest costs which the owner is required to pay for financing the acquisition of a comparable replacement dwelling. The amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days immediately prior to the initiation of negotiations for the acquisition of the dwelling. All of the mortgages on the acquired dwelling shall be used to compute the payment. The amount shall be computed using the lesser of the principal balance of the mortgage on the replacement dwelling or the outstanding principal balance of the mortgage on the acquired dwelling and the lesser of the remaining term on the acquired dwelling or the actual term of the new mortgage. The present value of the increased interest costs shall be computed based on the lesser of the prevailing interest rate or the actual interest rate on the replacement property. The amount Page 10 of 19 shall also include other reasonable debt service costs incurred by the displaced owner. For the purposes of this subdivision, if the replacement dwelling is a mobilehome, the term “mortgage,” as defined in subdivision (h) of Section 7260, shall include those liens as are commonly given to secure advances on, or the unpaid purchase price of, mobilehomes, together with the credit instruments, if any, secured thereby. (3) Reasonable expenses incurred by the displaced owner for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses. (c) The additional payment authorized by this section shall be made only to a displaced owner who purchases and occupies a decent, safe, and sanitary replacement dwelling within one year from the later of the following: (1) The date the displaced person receives final payment for the displacement dwelling, or in the case of condemnation, the date the full amount of estimated just compensation is deposited in court. (2) The date the displacing agency fulfills its obligation to make available at least one comparable replacement dwelling to the displaced person. However, the displacing agency may extend the period for good cause. Also, the displaced owner and the public entity may agree in writing that the displaced owner may remain in occupancy of the acquired dwelling as a tenant of the public entity on the conditions that the displaced owner shall only be entitled to the payment authorized by this section on the date on which the owner moves from the acquired dwelling and that the payment shall be in an amount equal to that to which the owner would have been entitled if the owner had purchased and occupied a replacement dwelling one year subsequent to the date on which final payment was received for the acquired dwelling from the public entity. (d) In implementing this chapter, it is the intent of the Legislature,that special consideration be given to the financing and location of a comparable replacement dwelling for displaced persons 62 years of age or older. 7263.5. For purposes of Section 7263, the leasing of a condominium for a 99-year period, or for a term which exceeds the life expectancy of the displaced person as determined from the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education, and Welfare, shall be deemed a purchase of the condominium. 7264. (a) In addition to the payments required by Section 7262, as a part of the cost of acquisition, the public entity shall make a payment to any displaced person displaced from any dwelling not eligible to receive a payment under Section 7263 which was actually and lawfully occupied by the person as a permanent or customary and usual place of abode for not less than 90 Page 11 of 19 days prior to the initiation of negotiation by the public entity for the acquisition of the dwelling, or in any case in which displacement is not a direct result of acquisition, or any other event which the public entity shall prescribe. (b) The payment, not to exceed five thousand two hundred fifty dollars ($5,250), shall be the additional amount which is necessary to enable the person to lease or rent a comparable replacement dwelling for a period not to exceed 42 months, unless the displaced person meets one or more of the conditions set forth in paragraph (3) of subdivision (i) of Section 7260, in which case the payment, which shall not exceed five thousand two hundred fifty dollars ($5,250), shall be the additional amount which is necessary to enable the person to lease or rent a comparable replacement dwelling for a period not to exceed 48 months. However, publicly funded transportation projects shall make payments enabling the person to lease or rent a comparable replacement dwelling for a period not to exceed 42 months, including compensation for utilities, as provided in subdivision (b) of Section 24.402 of Part 24 of Title 49 of the Code of Federal Regulations. Payments up to the maximum of five thousand two hundred fifty dollars ($5,250) shall be made in a lump sum. Should an agency pay pursuant to Section 7264.5 an amount exceeding the maximum amount, payment may be made periodically. Computation of a payment under this subdivision to a low-income displaced person for a comparable replacement dwelling shall take into account the person's income. (c) Any person eligible for a payment under subdivision (a) may elect to apply the payment to a downpayment on, and other incidental expenses pursuant to, the purchase of a decent, safe, and sanitary replacement dwelling. The person may, at the discretion of the public entity, be eligible under this subdivision for the maximum payment allowed under subdivision (b), except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least 90 days but not more than 180 days immediately prior to the initiation of negotiations for the acquisition of the dwelling, the payment shall not exceed the payment which the person would otherwise have received under subdivision (b) of Section 7263 had the person owned and occupied the displacement dwelling 180 days immediately prior to the initiation of the negotiations. (d) In implementing this chapter, it is the intent of the Legislature that special consideration shall be given to assisting any displaced person 62 years of age or older to locate or lease or rent a comparable replacement dwelling. [Section 4 of Chapter 597 of the Statutes of 1997, provides as follows: The amendment to Sections 7260, 7262.5, and 7264, made by this act shall apply prospectively only from January 1, 1998, and shall apply only to the extent that they do not adversely affect existing rights of persons or households entitled to benefits under this chapter on or before December 3 1 , 1997.1 7264.5. (a) If a program or project undertaken by the public entity cannot proceed on a timely basis because comparable replacement housing is not available and the public entity determines that comparable replacement housing cannot otherwise be made available, the public entity shall take any action necessary or appropriate to provide the dwellings by use of funds Page 12 of 19 authorized for the project. This section shall be construed to authorize the public entity to exceed the maximum amounts which may be paid under Sections 7263 and 7264 on a case-by-case basis for good cause as determined in accordance with rules and regulations adopted by the public entity. Where a displacing agency is undertaking a project with funds administered by a state agency or board, and where the displacing agency has adopted rules and regulations in accordance with Section 7267.8 for the implementation of this chapter, the determination of payments to be made pursuant to this subdivision shall be pursuant to those rules and regulations. (b) No person shall be required to move from his or her dwelling because of its acquisition by a public entity, unless comparable replacement housing is available to the person. (c) For purposes of determining the applicability of subdivision (a), the public entity is hereby designated as a duly authorized administrative body of the state for the purposes of subdivision (c) of Section 408 of the Revenue and Taxation Code. (d) Subdivision (b) shall not apply to a displaced owner who agrees in writing with the public entity to remain in occupancy of the acquired dwelling as provided in subdivision (c) of Section 7263. 7265. (a) In addition to the payments required by Section 7262, as a cost of acquisition, the public entity shall make a payment to any affected property owner meeting the requirements of this section. (b) The affected property shall be immediately contiguous to property acquired for airport purposes and the owner shall have owned the property affected by acquisition by the public entity not less than 180 days prior to the initiation of negotiation for acquisition of the acquired property. (c) The payment, not to exceed twenty-two thousand five hundred dollars ($22,500), shall be the amount, if any, which equals the actual decline in the fair market value of the property of the affected property owner caused by the acquisition by the public entity for airport purposes of other real property and a change in the use of the property. (d) The amount, if any, of actual decline in fair market value of affected property shall be determined according to rules and regulations adopted by the public entity pursuant to this chapter. The rules and regulations shall limit payment under this section only to those circumstances in which the decline in fair market value of affected property is reasonably related to objective physical change in the use of acquired property. 7265.3. (a) A public entity may make payments in the amounts it deems appropriate, and may provide advisory assistance under this chapter, to a person who moves from a dwelling or who moves or discontinues his business, as a result of impending rehabilitation or demolition of a residential or commercial structure, or enforcement of building, housing, or health codes by a public entity or because of systematic enforcement pursuant to Section 37924.5 of the Health and Safety Code, or who moves from a dwelling or who moves or discontinues a business as a result of a rehabilitation or demolition program or enforcement of building codes by the public entity, or Page 13 of 19 because of increased rents to result from such rehabilitation or code enforcement. Payments prescribed by subdivision (b) of Section 7264 may also be made to persons who remain in a dwelling during rehabilitation. Payments authorized by this section and made pursuant to subdivision (b) of Section 7264 may, at the option of the public entity, be computed and reviewed annually based on actual rental increases, and may be paid monthly or annually. A public entity may also give priority to a person who moves from a dwelling, or who remains in a dwelling during rehabilitation, in utiliiation of local, state, or federal rental assistance programs, either to enable the person to pay increased rents or to move to other suitable housing. A public entity assisting in the financing of rehabilitation may provide some or all of the payments authorized by this section as part of the loan for rehabilitation costs, provided that the public entity makes payments directly to the person who moves or who remains in the dwelling during rehabilitation. (b) A public entity shall make payments in the amounts prescribed by this chapter, and shall provide advisory assistance under this chapter, to persons and families of low or moderate income, as defined in Section 50093* of the Health and Safety Code, whose rent, within one year after the rehabilitation of their dwelling is completed, is increased to an amount exceeding 25 percent of their gross income, or who move from their dwelling, as the result of a rehabilitation program in which the rehabilitation work is wholly or partially financed or assisted with public funds provided by or through the public entity. (c) A public entity shall provide temporary housing for up to 90 days to persons displaced by rehabilitation work which is wholly or partially financed or assisted with public funds provided by or through the public entity. (d) A person displaced by rehabilitation work which is wholly or partially financed or assisted with public funds provided by or through the public entity shall, as a condition of the financing or assistance, be given the option of relocating, after rehabilitation, in the dwelling from which the person was displaced. (e) A public entity may limit the amounts of payments made pursuant to subdivision (b), otherwise calculated pursuant to subdivision (b) of Section 7264, to the lesser of (i) the difference between the increased rent and 25 percent of gross income; or (ii) the difference between the increased rent and the rent immediately before the rehabilitation which was greater than 25 percent of gross income. (f) The payments and advisory assistance as required in this section shall be mandatory only if federal or state funds are available. However, nothing shall preclude the public entity from using local funds. 7265.4. In addition to the payments required by Section 7262, as a cost of acquisition, the public entity, as soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is the earlier, shall reimburse the owner, to the extent the public Page 14of 19 entity deems fair and reasonable, for expenses the owner necessarily incurred for recording fees, transfer taxes, and similar expenses incidental to conveying such real property to the public entity. 7266. (a) If a relocation appeals board has been established pursuant to Section 33417.5 of the Health and Safety Code, a city by ordinance may designate the board to hear appeals from all public entities, except those state agencies which have an appeal process on the eligibility for, or the amount of, a payment authorized by this chapter. (b) Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by this chapter may have the application reviewed by the public entity or by the relocation appeals board if authorized under subdivision (a). The review of a determination by a community redevelopment agency may only be made by a relocation appeals board established pursuant to Section 33417.5 of the Health and Safety Code. 7267. In order to encourage and expedite the acquisition of real property by agreements with owners, to avoid litigation and relieve congestion in the courts, to assure consistent treatment for owners in the public programs, and to promote public confidence in public land acquisition practices, public entities shall, to the greatest extent practicable, be guided by the provisions of Section 7267.1 to 7267.7, inclusive, except that the provisions of subdivision (b) of Section 7267.1 and Section 7267.2 shall not apply to the acquisition of any easement, right-of-way, covenant, or other nonpossessory interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair, or replacement of subsurface sewers, waterlines or appurtenances, drains, septic tanks, or storm water drains. 7267.1. (a) The public entity shall make every reasonable effort to acquire expeditiously real property by negotiation. (b) Real property shall be appraised before the initiation of negotiations, and the owner, or the owner's designated representative, shall be given an opportunity to accompany the appraiser during his or her inspection of the property. However, the public entity may prescribe a procedure to waive the appraisal in cases involving the acquisition by sale or donation of property with a low fair market value. 7267.2. (a) Prior to adopting a resolution of necessity pursuant to Section 1245.230* and initiating negotiations for the acquisition of real property, the public entity shall establish an amount which it believes to be just compensation therefor, and shall make an offer to the owner or owners of record to acquire the property for the full amount so established, unless the owner cannot be located with reasonable diligence, The offer may be conditioned upon the legislative body's ratification of the offer by execution of a contract of acquisition or adoption of a resolution of necessity or both. In no event shall the amount be less than the public entity's approved appraisal of the fair market value of the property. Any decrease or increase in the fair market value of real property to be acquired prior to the date of valuation caused by the public improvement for which the property is acquired, or by the likelihood that the property would be acquired for the improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant, shall be disregarded in determining the compensation for the property. The Page 15 of 19 public entity shall provide the owner of real property to be acquired with a written statement of, and summary of the basis for, the amount it established as just compensation. Where the property involved is owner occupied residential property and contains no more than four residential units, the homeowner shall, upon request, be allowed to review a copy of the appraisal upon which the offer is based. Where appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be separately stated. (b) Notwithstanding subdivision (a), a public entity may make an offer to the owner or owners of record to acquire real property for less than an amount which it believes to be just compensation therefor if (1) the real property is offered for sale by the owner at a specified price less than the amount the public entity believes to be just compensation therefor, (2) the public entity offers a price which is equal to the specified price for which the property is being offered by the landowner, and (3) no federal funds are involved in the acquisition, construction, or project development. (c) As used in subdivision (b), "offered for sale" means any of the following: (1) Directly offered by the landowner to the public entity for a specified price in advance of negotiations by the public entity. (2) Offered for sale to the general public at an advertised or published, specified price set no more than six months prior to and still available at the time the public entity initiates contact with the landowner regarding the public entity's possible acquisition of the property. 7267.3. The construction or development of a public improvement shall be so scheduled that, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling, assuming a replacement dwelling will be available, or to move his business or farm operation, without at least 90 days' written notice from the public entity of the date by which such move is required. 7267.4. If the public entity permits an owner or tenant to occupy the real property acquired on a rental basis for a short term, or for a period subject to termination by the public entity on short notice, the amount of rent required shall not exceed the fair rental value of the property to a short- term occupier. 7267.5. In no event shall the public entity either advance the time of condemnation, or defer negotiations or condemnation and the deposit of funds in court for the use of the owner, or take any other action coercive in nature, in order to compel an agreement on the price to be paid for the property. 7267.6. If any interest in real property is to be acquired by exercise of the power of eminent domain, the public entity shall institute formal condemnation proceedings. No public entity shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of his real property. Page 16 of 19 7267.7. (a) If the acquisition of only a portion of a property would leave the remaining portion in such a shape or condition as to constitute an uneconomic remnant, the public entity shall offer to acquire the entire property if the owner so desires. (b) A person whose real property is being acquired in accordance with this chapter may, after the person has been fully informed of his or her right to receive just compensation for the property, donate the property, any part thereof, any interest therein, or any compensation paid therefor to a public entity determined by the person. 7267.8. (a) All public entities shall adopt rules and regulations to implement payments and to administer relocation assistance under this chapter. These rules and regulations shall be in accordance with the rules and regulations adopted by the Department of Housing and Community Development. (b) Notwithstanding subdivision (a), with respect to a federally funded project, a public entity shall make relocation assistance payments and provide relocation advisory assistance as required under federal law. [See Health and Safety Code, Section 50460*] 7267.9. (a) Prior to the initiation of negotiations for acquisition by a public entity or public utility of nonprofit, special use property, as defined by Section 1235.155* of the Code of Civil Procedure, the acquiring public entity or public utility shall make every reasonable effort to seek alternative property which is other than nonprofit, special use property. However, this requirement shall not apply to properties acquired by public entities for transportation purposes, including, but not limited to, the construction, expansion, or improvement of streets, highways, or railways. (b) This section does not apply to actions or proceedings commenced by a public entity or public utility to acquire real property or any interest in real property for the use of water, sewer, electricity, telephone, natural gas, or flood control facilities or rights-of-way where those acquisitions neither require removal or destruction of existing improvements, nor render the property unfit for the owner's present or proposed use. [Section 7 of Chapter 7 of the Statutes of 1992 provides as follows with respect to Section 7267.9 as added by that act: SEC. 7. The changes made by this act shall apply to eminent domain actions or proceedings commenced on or after January 1, 1993 .] 7269. (a) No payment received by any person under this chapter or as tenant relocation assistance required by any state statute or local ordinance shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax Law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. Page 17of 19 (b) No payment received by any person under this chapter shall be considered as income or resources to any recipient of public assistance and such payments shall not be deducted from the amount of aid to which the recipient would otherwise be entitled under any other provisions of law. 7269.1. Where a recipient of relocation benefits payments under federal or state law is also a general assistance recipient under Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code and two or more rent schedules apply to the recipient, the highest shall prevail and any excess amount over lower rent schedule shall not be counted as income or resources for general assistance purposes under Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code. 7270. Nothing contained in this chapter shall be construed as creating in any condemnation proceedings brought under the power of eminent domain any element of damages not in existence on the date of enactment of this chapter. 7271. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable. 7272. If under any other provision of law of this state the owner or occupant of real property acquired by a public entity for public use is given greater protection than is provided by Sections 7265.3 to 7267.8, inclusive, the public entity shall also comply with such other provision of law. 7272.3. It is the intent of the Legislature, by this chapter, to establish minimum requirements for relocation assistance payments by public entities. This chapter shall not be construed to limit any other authority which a public entity may have to make other relocation assistance payments, or to make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by this chapter. Any public entity may, also, make any other relocation assistance payment, or may make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by this chapter, if the making of such payment, or the payment in such amount, is required under federal law to secure federal funds. 7272.5. Nothing contained in this article shall be construed as creating in any condemnation proceeding brought under the power of eminent domain, any element of damages not in existence on the date the public entity commences to make payments under the provisions of this article as amended by the act which enacted this section at the 1971 Regular Session of the Legislature. 7273. Funds received pursuant to Sections 2106 and 2107 of the Streets and Highways Code may be expended by a city to compensate displaced persons for their moving expenses because of the construction of city highways or streets. Page 18 of 19 7274. Section 7267 to 7267.7, inclusive, create no rights or liabilities and shall not affect the validity of any property acquisitions by purchase or condemnation. 7275. Whenever any public entity acquires real property by eminent domain, purchase, or exchange, the purchase price and other consideration paid by such entity is public information and shall be made available upon request from the entity concerned. 7276. (a) If a resolution is adopted under Section 1245.330 of the Code of Civil Procedure consenting to the acquisition of property by eminent domain and the person authorized by the resolution to acquire the property by eminent domain acquires the property by purchase, eminent domain, or otherwise, that person shall provide relocation advisory assistance and shall make any of the payments required to be made by public entities pursuant to the provisions of this chapter in conformity with this chapter and the guidelines adopted by the Commission of Housing and Community Development pursuant to Section 7268. (b) This section does not apply to public utilities which are subject to the provisions of Article 6 (commencing with Section 600) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code or to public entities which are subject to this chapter. 7277. (a) The requirement to provide relocation assistance and benefits imposed by this chapter shall not apply to a purchase of property which is offered for sale by the owner, property being sold at execution or foreclosure sale, or property being sold pursuant to court order or under court supervision if the property in any of the foregoing situations is either occupied by the owner or is unoccupied, and if the offer for sale is not induced by public entity disposition, planned condemnation, or redevelopment of surrounding lands, and if the sales price is fair market value or less, as determined by a qualified appraiser, and if no federal funds are involved in the acquisition, construction, or project development. "Offered for sale" means either advertised for sale in a publication of general circulation published at least once a week or listed with a licensed real estate broker and published in a multiple listing, pursuant to Section 1087 of the Civil Code. (b) At the time of making an offer to acquire property under subdivision (a), public entities shall notify the property owner in writing, of the following: (1) The public entity's plans for developing the property to be acquired or the surrounding property. (2) Any relocation assistance and benefits provided pursuant to state law which the property owner may be foregoing. Page 19 of 19 California Relocation Assistance and Real Property Acquisition Guidelines (“State Guidelines”) ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - F-3 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Document http://ccr.oal.ca.gov/cg~-b~n/om~~ ... record=~759~4~&so~pa~e=Document42 Chapter 6. Department of Housing and Community Development Programs Subchapter 1. Relocation Assistance and Real ProDerty Acquisition Guidelines Article 1. General 86000. Order of Adoption. This subchapter (hereinafter referred to as the “Guidelines”) is adopted pursuant to the provisions of Section 4 1 135, Health and Safety Code, in order to implement, interpret and to make specific provisions of Division 7, commencing with Section 7260 of the Government Code (hereinafter referred to as the “Act”), relating to relocation assistance, last resort housing and real property acquisiiion. Authority cited for Chapter 6: Sections 41 134, 41 135, and 41226, Health and Safety Code. Reference: Section 7260 et seq., Government Code; 41 134,41135, and 41226, Health and Safety Code. HKTORY 1. Amendment filed 1 1-5-76 as an emergency; designated effective 1 1-27-76 (Register 76, No. 44). For prior history, see Register 76, No. 44. 2. Redesignation of Chapter 6 (Sections 6000-6198, not consecutive) to Chapter 6, Subchapter 1 (Sections 6000-6 198, not consecutive) filed 1-28-77 as procedural and organizational; effective upon filing (Register 77 No. 5). 3. Amendment filed 1-28-77 as procedural and organizational; effective upon filing (Register 77, No. 5). 1of1 6/21/2000 5:41 PM Docum en t http://ccr.oal.ca.gov/cgi-bin/om-~.. .record=(75 953) &sofipage=Document42 4. Certificate of Compliance as to filing of 11-5-76 filed 2-16-77 (Register 77, No. 8). 56002. Statement of Purpose and Policy. (a) The purpose of the Guidelines is to assist public entities in the development of regulations and procedures implementing the Act. (b) The Guidelines are designed to carry out the following policies of the Act: (1) To ensure that uniform, fair and equitable treatment is afforded persons displaced from their homes, businesses or farms as a result of the actions of a public entity in order that such persons shall not suffer disproportionate injury as a result of action taken for the benefit of the public as a whole; and (2) In the acquisition of real property by a public entity, to ensure consistent and fair treatment for owners of real property to be acquired, to encourage and expedite acquisition by agreement with owners of such property in order to avoid litigation and relieve congestion in courts, and to promote confidence in public land acquisition. (c) A public entity shall not participate in or undertake a project that will displace individuals from their homes unless comparable replacement dwellings (see subsection 6008(c)) will be available within a reasonable period of time prior to displacement. (d) The Guidelines are intended to establish only minimum requirements for relocation assistance and payments. They shall not be construed to limit any other authority or obligation which a public entity may have to provide additional assistance and payments. (e) The Act and the Guidelines are intended for the benefit of displaced persons, to ensure that such persons receive fair and equitable treatment and do not suffer dispropoi<ionate injuries as the result of programs designed for the benefit of the public as a whole. The Act, Guidelines and all applicable regulations on which determinations are based shall be construed to effect this intent. $6004. Applicability and Supersedure. 1of1 6/21/2000 5:42 PM Document http://ccr.oal.ca.gov/cgi-bin/om-i ...recOrd=(75 062) &softpage=DocumentJ2 (a) Except as otherwise noted in this section, the Guidelines are applicable to all displacement and acquisition occurring on or after their effective date, January 1, 1977. (b) These Guidelines supersede those adopted by the Commission of Housing and Community Development on October 17, 1973. The guidelines so superseded shall not apply to any displacement or acquisition occurring on or after the effective date of these Guidelines. Any such displacement or acquisition shall be governed solely by these Guidelines and the California Relocation Act, found at Government Code section 7260 et seq. The provisions of these Guidelines, however, shall not be construed retroactively to apply to action(s) undertaken by a public entity prior to their effective date where the purpose of the action was to fdfill obligations imposed by the Act and the action is in compliance with the requirements of the Act and the existing Guidelines. For the purpose of this section the term “action” shall include but is not limited to: the provision of information, notice, other assistance, comparable replacement housing, payments and other benefits; the preparation of relocation and last resort housing plans, including the survey and analysis of needs and resources; the processing of grievances; and the various steps taken in connection with the acquisition of property for public use. These guidelines shall apply to relocation plans and notices to displacees subsequent to the effective date of any regulatory provision. The right of displacees shall not be reduced in reliance on any amendment to these guidelines where it may be demonstrated that the displacee has acted in reliance on a notice given to that household prior to the effective date of any guideline. (c) To the extent that these Guidelines are from time to time amended, the amendments shall be effective prospectively from the date that they become effective. Authority cited: Section 50460, Health and Safety Code. Reference: Article 4, Section 8, California Constitution. 1. Amendment of subsection (b) filed 1 1-5-76 as an emergency; designated effective 1 1-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 3. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 56006. Regulations. lof! 6/21/2000 5:42 PM Document http://ccr.oal.ca.gov/cgi-bin~om~i ... record={7597 1 }&softpage=Document42 (a) Each public entity before undertaking or participating in activity which will result in the displacement of persons shall adopt rules and regulations that implement the requirements of the Act, are in accordance with the provisions of the Guidelines, and prescribe additional procedures and requirements that are appropriate to the particular activities of the public entity and not inconsistent with the Act or Guidelines. (b) Rules and regulations issued under this section shall be promptly revised as necessary, to conform to any amendment of the Act or Guidelines. 56008. Definitions. The following terms shall mean: (a) Acquisition. Obtaining ownership or possession of property by lawful means. (b) Business. Any lawful activity, except a farm operation provided such lawful activity is not in an unlawful occupancy as defined in subsection (v), conducted primarily: (1) For the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property; (2) For the sale of services to the public; 1of1 612 1/2000 5:42 PM Doc u men t http://ccr.oal.ca.gov/cgi-bin/om-i ... record={ 75 9SO) &softpage=Document42 (3) By a nonprofit organization; or (4) Solely for the purpose of a moving expense payment (see section 6090), for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not such display is located on the premises on which any of the above activities are conducted. (c) Comparable Replacement Dwelling. A dwelling which satisfies each of the following standards: (1) Decent, safe and sanitary (as defined in subsection 6008(d)), and comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but not lesser in rooms or living space than necessary to accommodate the displaced person. (2) In an area not subjected to unreasonable adverse environmental conditions from either natural or manmade sources, and not generally less desirable than the acquired dwelling with respect to public utilities, public and commercial facilities and neighborhood conditions, including schools and municipal services, and reasonably accessible to the displaced person's present or potential place of employment; provided that a potential place of employment may not be used to satisfy the accessibility requirement if the displaced person objects. The Act and Guidelines do not require that the replacement dwelling be generally as desirable as the acquired dwelling with respect to environmental characteristics. Though a displaced person does not have to accept a dwelling subject to unreasonable adverse environmental conditions, neither is a public entity required to duplicate environmental characteristics, such as scenic vistas or proximity to the ocean, lakes, rivers, forests or other natural phenomena. If the displaced person so wishes, every reasonable effort shall be made to relocate such person within or near to his existing neighborhood. Whenever practicable the replacement dwelling shall be reasonably close to relatives, friends, services or organizations with whom there is an existing dependency relationship. (3) Available on the private market to the displaced person and available to all persons regardless of race, color, sex, marital status, religion, or national origin in a manner consistent with Title VI11 of the Civil Rights Act of 1963 or any other applicable state or federal anti-discrimination law. (4) 'To the extent practicable and where consistent with paragraph (c)( 1) of this section, functionally equivalent and substantially the same as the acquired dwelling, but not excluding newly constructed housing. (5)(A) Within the financial means of the displaced person. A replacement dwelling is within the financial means of a displaced person if the monthly rental cost (including utilities and other reasonable recurring expenses) minus any replacement housing payment available to the person (as provided in section 6104) does not exceed thirty percent (30%)1 of the person's average monthly income (as defined in subsection 6008( 1)). (B) For homeowners; a replacement dwelling is within the financial means of a displaced person if the purchase price of the dwelling including related increased interest costs and other reasonable expenses including closing costs (as described in section 61 02) does not exceed the total of the amount of just compensation provided for the dwelling acquired and the replacement housing payment available to the person (as provided in section 6 102). If a dwelling which satisfies these standards is not available the public entity may consider a dwelling which exceeds them. (d) Decent, Safe and Sanitary. I of2 6/21/2000 5:42 PM Document http://ccr.oal.ca.gov/cgi-bidom-i ... record={ 75980) &softpage=Document42 (1) Housing in sound, clean and weather tight condition, in good repair and adequately maintained, in conformance with the applicable state and local building, plumbing, electrical, housing and occupancy codes or similar ordinances or regulations and which meets the following minimum standards: 2 of2 6/21/2000 5:42 PM Docurncnt http:/lccr.oal.ca.gov/cgi-bin/om~~ ... record={ 7j9SF}&softpage=Document42 (A) Each housekeeping unit shall include a kitchen with a fully usable sink, a stove or connection for a stove, a separate and complete bathroom, hot and cold running water in both bathroom and kitchen, an adequate and safe wiring system for lighting and other electrical services and heating as required by climatic conditions and local codes. (B) Each nonhousekeeping unit shall be in conformance with state and local code standards for boarding houses, hotels and other dwellings for congregate living. (2) When the term decent, safe and sanitary is interpreted, under local, state or federal law, as establishing a higher standard, the elements of that higher standard, which exceed the provision of paragraph (1) of this subsection, are incorporated herein. A unit which is occupied by no more than the maximum number of people allowed under the State Building Code shall be considered to be in compliance with the occupancy provisions of this subsection. (e) Department. Department of Housing and Community Development. (0 Displaced Person. Any person who moves from real property, or who moves his personal property from real property, either: (1) As a result of a written notice of intent to acquire by a public entity or as a result of the acquisition of such real property, in whole or in part, by a public entity or by any person having an agreement with or acting on behalf of a public entity, or as the result of a written order from a public entity to vacate the real property, for public use; or (2) As a result of the rehabilitation, demolition or other displacing activity undertaken by a public entity or by any person having an agreement with or acting on behalf of a public entity of real property on which the person is in lawful occupancy or conducts a business, and the displacement, except as provided in Government Code section 7262.5, lasts longer than 90 days. This definition shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner participation agreement or an acquisition carried out by a private person for or in connection with a public use where the public entity is otherwise empowered to acquire the property to carry out the public use. (3) Except persons or families of low and moderate income, as defined in Section 50093 of the Health and Safety Code, who are occupants of housing which was made available to them on a permanent basis by a public agency and who are required to move from that housing, a displaced person shall not include any of the following: (A) Any person who has been determined to be in unlawr’ul occupancy of the displacement property as defined in subsection 6008(v). (B) Any person who is a post-acquisition occupant of the displacement dwelling, as provided in section 6034(b); (C) Any person who occupied the property for the purpose of obtaining relocation benefits and assistance; (D) Any person who is an occupant of a “Qualified affordable housing preservation project” and all requirements of Government Code section 7262.5 are met; or (E) Any person occupying private property (not otherwise entitled to relocation benefits as a result of an acquisition, rehabilitation or demolition program) who is required to move as a result of the displacing agency’s routine enforcement of building, housing or health codes unless the code enforcement is undertaken for the purpose of causing displacement in coordination with an identified rehabilitation, construction, or demolition program or project. (F) A person who is not required to move permanently or temporarily as a result of the project as long as they are notified they are not required to move and the project does not impose an unreasonable change in the character or use of the property. 1 of2 6/21/2000 5:43 PM Document http://ccr.oal.ca.gov/cgi-bidom-i ... record= { 75 99E}&softpage=Document42 (G) An owner-occupant who moves as a result of an acquisition meeting the requirements of Government Code section 7277. (g) Dwelling. The place of permanent or customary and usual abode of a person, including a single-family dwelling, a single-family unit in a two-family dwelling, multi-family or multipurpose dwelling, a unit of a condominium or cooperative housing project, a nonhousekeeping unit, a mobilehome, a recreational vehicle as described in Health and Safety Code Section 18010, or any other residential unit which either is considered to be real property under State law or cannot be moved without substantial damage or unreasonable cost. A residence need not be decent, safe and sanitary to be a dwelling. A second home shall be considered to be a dwelling only for the purpose of establishing eligibility for payment for moving and related expenses (as provided in section 6090). (h) Economic Rent. The amount of rent a tenant or homeowner would have to pay for a dwelling similar to the acquired dwelling in a comparable area. (i) Elderly Household. A household in which the head of household or spouse is 62 years or older. 6) Family. Two or more individuals who by blood, marriage, adoption, or mutual consent live together as a family unit. (k) Farm Operation. Any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (1) Gross Income. Gross income means the total annual income of an individual, or where a family is displaced total annual income of the parents or adult heads of household, less the following: (1) A deduction of $500 for each dependent in excess of three. (2) A deduction of ten percent (1 0%) of total income for an elderly or handicapped household. (3) A deduction for recurring, extraordinary medical expenses, defined for this purpose to mean medical expenses in excess of three percent of total income, where not compensated for or covered by insurance or other sources, such as public assistance or tort recovery. (4) A deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head or spouse, except that the amount deducted shall not exceed the amount of income received by the person thus released. Gross income is divided by twelve to ascertain the average monthly income. Relocation and property acquisition payments are not to be considered as income for the determination of financial means. (m) Handicapped Household. A household in which any member is handicapped or disabled. (n) Initiation of Negotiations. The initial written offer made by the acquiring entity to the owner of real property to be purchased, or the owner's representative. iofl 6/21/2000 5:43 PM Document http:l/ccr.oal.ca.govicgi-bin/om~i ... record=(759.~D} &softpage=Document42 (0) Manufactured Home or Mobilehome. A structure described in Health and Safety Code sections 18007 and 18008. (p) Mortgage. Such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby. (4) Ownership. Holding any of the following interests in a dwelling, or a contract to purchase one of the first six interests: (1) A fee title. (2) A life estate. (3) A 50-year lease. (4) A lease with at least 20 years to run from the date of acquisition of the property. (5) A proprietary interest in a cooperative housing project which includes the right to occupy a dwelling. (6) A proprietary interest in a mobilehome. (7) A leasehold interest with an option to purchase. In the case of one who has succeeded to any of the foregoing interests by devise, bequest, inheritance or operation of law, the tenure of ownership, but not occupancy, of the succeedin, 0 owner shall include the tenure of the preceding owner. (r) Person. Any individual, family, partnership, corporation, limited liability corporation or association. (s) Public Entity. Includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state when acquiring real property, or any interest therein, or ordering that acquired property be vacated, in any city or county for public use. (t) Public Use. A use for which property may be acquired by eminent domain. (u) Tenant. A person who rents or is otherwise in lawful possession of a dwelling, including a sleeping room, which is owned by another. 1 of1 6/21/2000 5:43 PM Document http://ccr.oal.ca.gov/cgi-bin/om-i ... record={ 759BC}&softpage=Document42 (v) Unlawful Occupancy. A person is considered to be in unlawful occupancy if the person has been ordered to move by a court of competent jurisdiction or if the person's tenancy has been lawfully terminated by the owner for cause, the tenant has vacated the premises, and the termination was not undertaken for the purpose of evading relocation assistance obligations. 'For those who, pursuant to the criteria set forth in Government Code section 7260(i)(3)(A) through (J), would have qualified as a "displaced person" prior to January 1, 1998, the applicable figure shall be twenty-five percent (25%) of the person's average monthly income. Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260(b), (c)(2)(A), (I)( 1) and 7277, Government Code; Section 17000, Corporations Code; and Sections 18007, 18008, 18010 and 50093, Health and Safety Code. 1. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 2. Redesignation and amendment of former subsection (c)(5) as subsections (c)(S)(A)-(B) and amendment of subsections (f)(2) and (f)(3)(D) filed 10-7-99; operative 1 1-6-99 (Register 99, No. 41). 86010. Prior Determinations. (a) Displacement. No public entity may proceed with any phase of a project or other activity which will result in the displacement of any person, business or farm until it makes the following determinations: (1) Fair and reasonable relocation payments will be provided to eligible persons as required by Article 3 of the Guidelines. 6/21/2000 5:53 PM Doc urn en t http://ccr.oal.ca.gov/cgi-bin/om-i ... record={ 759CB}&softpage=Docurnent42 (2) A relocation assistance program offering the services described in Article 2 of the Guidelines will be established. (3) Eligible persons will be adequately informed of the assistance, benefits, policies, practices and procedures, including grievance procedures, provided for in these Guidelines. (4) Based upon recent survey and analysis of both the housing needs of persons who will be displaced and available replacement housing and considering competing demands for that housing, comparable replacement dwellings will be available, or provided, if necessary, within a reasonable period of time prior to displacement sufficient in number, size and cost for the eligible persons who require them. (5) Adequate provisions have been made to provide orderly, timely, and efficient relocation of eligible persons to comparable replacement housing available without regard to race, color, religion, sex, marital status, or national origin with minimum hardship to those affected. (6) A relocation plan meeting the requirements of section 6038 has been prepared. (b) Acquisition. No public entity may proceed with any phase of a project or any other activity which will result in the acquisition of reai property until it determines that with respect to such acquisition and to the greatest extent practicable, (1) Adequate provisions have been made to be guided by the provisions of Article 6 of the Guideiines, and (2) Eligible persons will be informed of the pertinent benefits, policies and requirements of the Guidelines. tI ISTO R Y 1. Amendment of subsection (b) filed 11-5-76 as an emergency; designated effective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2- 16-77 (Register 77, No. 8). $6012. Citizen Participation. lofl 6/21/2000 55s PM Document http://ccr.oal.ca.gov/cg i-bid0m-i.. .record= 75 9 DA} &softpagr=Documen tJ2 (a) All persons who will be displaced, neighborhood groups and any relocation committee shall be given an opportunity and should be encouraged fully and meaningfully to participate in reviewing the relocation plan and monitoring the relocation assistance program. (b) When a substantial number of persons will be displaced from their dwellings the public entity shall encourage the residents and community organizations in the displacement area to form a relocation committee. The committee shall include, when applicable, residential owner occupants, residential tenants, business people, and members of existing organizations within the area. In lieu of initiating a new process of citizen participation, public entities which have conducted or are conducting a citizen participation process as part of an existing development program may substitute such process if it satisfies the requirements of this section. If a substantial number of persons will not be displaced from their dwellings, the public entity shall at least consult with and obtain the advice of residents and community organizations and make the relocation plan available to such persons and organizations prior to submitting it to the legislative body for approval. (See section 6035.) (c) At a minimum the displacing entity shall guarantee the following: (1) Timely and full access to all documents relevant to the relocation program. A public entity may reasonably restrict access to material where its confidentiality is protected by law or its disclosure is prohibited by law. The displacing entity shall ensure that the information in documents the provision of which would result in disclosure of the identity of eligible persons is provided in a manner designed to avoid such disclosure. This obligation to avoid improper disclosure shall not affect the right of the person to which the infomation relates (or any other person authorized in writing by such person) to inspect such documents. (2) The provision of technical assistance necessary to interpret elements of the relocation plan and other pertinent materials. (3) The right to submit written or oral comments and objections, including the right to submit written comments on the relocation plan and to have these comments attached to the plan when it is forwarded to the local legislative body or the head of the state agency for approval. (4) Prompt, written response to any written objections or criticisms. $6014. Prerequisite to Displacement. 1of1 No person shall be displaced until the public entity has fulfilled the obligations imposed by the Act and Guidelines. 6/21/2000 5:59 PM Document http://ccr.oal.ca.gov/cgi-bid0tn-i ... record= { 759E9) &softpage=Document42 $6016. Remedies. (a) If the public entity has not fulfilled or is not substantially fulfilling its relocation responsibilities, it shall cease displacement until such time as its responsibilities are fulfilled. When appropriate project implementation shall be suspended or terminated. (b) Eligible persons who move without offers of assistance and benefits, after the public entity was required to offer assistance or benefits, shall be provided such assistance and payments and, when appropriate, compensation for additional costs incurred. The displacing entity shall make every effort to identify and locate such persons. (c) A public entity may pay a complainant’s attorney’s fees and costs and is encouraged to consider doing so when a complainant institutes a successful administrative appeal or judicial action. (d) The enumeration of remedies in this section is not intended to discourage or preclude the use of rither remedies consistent with the intent of the Act and Guidelines. Rather a public entity is encouraged to consider and adopt other remedies. $6018. Priority of Federal Law. If a public entity undertakes a project with federal financial assistance and consequently must provide relocation assistance and benefits as required by federal law, the provisions of the Act and Guidelines shall not apply; but if an obligation to provide relocation assistance and benefits is not imposed by federal law the provisions of the Act and Guidelines shall apply. 56020. Severability. 1of1 6/21/2000 5:59 PM Document http:/lccr.oal.ca.gov/cgi-bin~om~i ... record={ 759F38) &soffpage=Document42 If any provision of the Guidelines or the application thereof is held invalid, such invalidity shall not affect other provisions or applications of the Guidelines which can be given effect birhout the invalid provision or application, and to this end the provisions of the Guidelines are severable. Article 2. Relocation Assistance Advisory Program and Assurance of Comparable lie p 1 a c em en t Housing $6030. Purpose. _-__- The purpose of this part is to set forth requirements with respect to the development and implementation of a relocation assistance advisory program for the provision of specified services and to prescribe the obligation of a public entity not to displace or cause the displacement of any person from his dwelling without adequate notice and unless comparable replacement housing is available. $6032. Relocation Assistance Advisory Program. Public entities shall develop and implement a relocation assistance advisory program which satisfies the requirements of this article and of Title VI of the Civil Rights Act of 1964, Title VI11 of the Civil Rights Act of 1968, the Umh Civil Rights Act, the Rumford Act and applicable state and federal anti-discrimination laws. Such program shall be administered so as to provide advisory services which offer maximum assistance to minimize the hardship of displacement and to ensure that (a) all persons displaced from their dwellings are relocated into housing meeting the criteria for comparable replacement housing, and (b) all persons displaced from their places of business or farm Operations are assisted in reestablishing with a minimum of delay and loss of earnings. lofl 6/21/2000 559 PM Document http://ccr.oal.ca.gov/cgi-bin/om-i ... record={ 75x07) &softpage=Docurnent42 Authority cited: Section 50460, Health and Safety Code. Reference: Section 7261, Government Code. 1. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 56034. Eligibility. (a) Relocation assistance and benefits shall be available to: (1) Any person who occupies property from which he will be displaced. (2) Any person who will move from real property or will move his personal property from real property, because he will be displaced from other real property on which he conducts a business or farm operation. (3) Any person who moves from real property as a result of its acquisition by a public entity whether the move is voluntary or involuntary. (4) Any person who, following the initiation of negotiations by a public entity, moves as the result of the pending acquisition. (5) Any person who moves as the result of pending acquisition, rehabilitation or demolition by a public entity either following receipt of a Notice of Intent to Displace (see section 60%) or as a result of inducement or encouragement by the public entity. (b)(l) Post-acquisition tenants, those who lawfully occupy property only after a public entity acquires it, or who lawfully occupy property after the private acquisition of property by a person with a written agreement with a public entity for the purpose of financing the purchase or devel.opment of the property, are not eligible for assistance and benefits other than advisory assistance to the extent determined by the displacing agency. !of1 6/21/2000 6:OO PM Document http://ccr.oal.ca.gov/cgi-bin/om-i ... record={75.A 16)&softpa, "e=Document42 A public entity shall inform post-acquisition tenants regarding the pro--jected date of displacement and. periodically, should inform post-acquisition tenants of any changes in this projection. (2) When the displacement of a post-acquisition tenant causes a hardship for that person because of a critical housing shortage, age, handicap, infirmity, lack of financial means or other circumstance, the displacing entity shall provide relocation advisory assistance and, may in its discretion, provide other financial relocation benefits. In such hardship situations a public entity is encouraged to provide advisory assistance and payment for moving expenses. (3) Where a public entity, or property it owns, is making housing available on a permanent basis, a post-acquisition tenant who moves as the result of a written order from the public entity to vacate is eligible for relocation assistance and benefits if the order to vacate is related to a plan to demolish, rehabilitate or change the use of such units. Authority cited: Section 50460, Health and Safety Code. Reference: Section 7260(c), Government Code. 1. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). $6036. Rehabilitation and Demolition. If a public entity undertakes a rehabilitation or demolition program and as a result a person or business is displaced from privately owned property, the public entity shall provide assistance and benefits. If a person or business is displaced by such an undertaking from property acquired by a public entity, the public entity shall provide assistance and benefits. Authority cited: Section 50460, Health and Safety Code. Reference: Section 7260(c), Government Code. 1of1 6/21/2000 6:OO PM Document http://ccr.oal.ca.gov/cgi-bidom-i ... record= { 75x5) &softpage=Document42 1. Amendment of section heading and section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 96038. Relocation Plan. (a) As soon as possible following the initiation of negotiations and prior to proceeding with any phase of a project or other activity that will result in displacement a public entity shall prepare a Relocation Plan and submit it for approval to the local legislative body, or in the case of a state agency, the head of the agency. When the public entity’s action will only result in an insignificant amount of non-residential displacement a displacing entity shall provide benefits as required by these Guidelines and state Relocation Law without compliance with this section. For residential projects of 15 or less households, the full and accurate completion of the Model Relocation Plan HCD-832(new), which is incorporated by reference as if set forth in full, shall be presumed to be in compliance with the planning requirements of this section. Copies of the Model Relocation Plan HCD-832(6/8/99) as well as the Informational Notice HCD-833(6/8/99), which is incorporated by reference as if set forth in full, may be downloaded from the Department’s internet web site at www.hcd.ca.gov. This form can be obtained from the Department by telephoning 91 6-323-7288. (b) A Relocation Plan shall include the following: (1) A diagrammatic sketch of the project area. (2) Projected dates of displacement. (3) A written analysis of the aggregate relocation needs of all persons to be displaced (as required by section 6048) and a detailed explanation as to how these needs are to be met. (4) A written analysis of relocation housing resources (as required by section 6052). (5) A detailed description of the relocation advisory services program, including specific procedures for locating and referring eligible persons to comparable replacement housing. (6) A description of the relocation payments to be made (pursuant to Article 3) and a plan for disbursement . 1of1 6/21/2000 6:OO PM Document http://www.calregs.com/cgi-bidom- ... record= { 75A34) &soApage=Document42 (7) A cost estimate for caTing out the plan and identification of the source of the necessary funds. (8) A detailed plan by which any last resort housing (as described in section 6054 and Article 4) is to be built and financed. (9) A standard information statement to be sent to all renters who will be permanently displaced (as required by section 6046). (1 0) Temporary relocation plans, if any. (1 1) A description of relocation office operation procedures. (12) Plans for citizen participation. (1 3) An enumeration of the coordination activities undertaken (pursuant to section 6052). (1 4) The comments of the relocation committee, if any (pursuant to section 601 2). (1 5) .A written determination by the public entity that the necessary resources will be available as required. (c) A Plan prepared by a local public entity shall be consistent with the local housing element. (d) In the event of delay of more than one year in the implementation of the relocation program, the pian shall be updated prior to implementation of that program. (e)(l) Copies of the plan shall be submitted for review to the relocation committee 30 days prior to submission to the local legislative body or head of state agency for approval. Copies shall be available to the public upon request. A copy of the final relocation plan shall be forwarded to the department which shall act as a central repository. (2) General notice of the plan shall be provided. Notice shall be designed to reach the occupants of the property; it shall be in accordance with the provisions of paragraph 6046(a)(3) and subsection 6046(b); and it shall be provided 30 days prior to submission to the local legislative body or head of state agency for approval. (f) Any displaced person or interested organization may petition the department to review the relocation plan required to be submitted by the displacing agency. The department shall review the plan in accordance with the time constraints and the procedures established in Article 5. lof1 6/22/2000 1:ll PM Document http:/,‘w~~\.v.c~iregs.com/cgi-bin/om~...re~o~d=~75~~~} &sofipage=Docurnent42 Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260.5 and 7261, Government Code. 1. Amendment of subsection (c) filed 1-28-77 as procedural and organizational; effective upon tiling (Register 77, No. 5). 2. Amendment of subsections (a) and (c)-(e)(l), new subsection (0 and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 3. Amendment of subsections (a), (b)(9) and (e)( 1) filed 10-7-99; operative 1 1-6-99 (Register 99, No. 41). $6040. Minimum Requirements of Relocation Assistance Advisory Program. (a) Each relocation assistance advisory program undertaken pursuant to this Article shall include, at a minimum, such measures, facilities or services as may be necessary or appropriate in order to: (1) Fully inform eligible persons under this Article within 60 days following the initiation of negotiations but not later than the close of escrow on the property, for a parcel as to the availability of relocation benefits and assistance and the eligibility requirements therefor, as well as the procedures for obtaining such benefits and assistance, in accordance with the requirements of section 6046. For projects by private parties with an agreement with a public entity, the “initiation of negotiations” shall be the later of the date of acquisition or the date of the written agreement between the private entity and the public entity for purposes of acquiring or developing the property for the project. (2) Determine the extent of the need of each such eligible person for relocation assistance in accordance with the requirements of section 6048. (3) Assure eligible persons that within a reasonable period of time prior to displacement there will be available comparable replacement housing, meeting the criteria described in section 6008(c), sufficient in number and kind for and available to such eligible persons. (4) Provide current and continuing information on the availability, prices, and rentals of comparable sales and rental housing, and of comparable commercial properties and locations, and as to security deposits, closing costs, typical down payments, interest rates, and terms for residential property in the area. 1of1 6/22/2000 1 : 12 PM (5) Assist each eligible person to complete applications for payments and benefits. (6) Assist each eligible, displaced person to obtain and move to a comparable replacement dwelling. Only adequate inspection \Till insure that a particular unit meets this standard. If a displaced person occupies a unit to which he is referred by the public entity and the unit does not satisfy the comparable replacement dwelling standard, the public entity has not fulfilled its obligation to assist the displaced person to obtain such a dwelling. Whenever this occurs the public entity shall offer to locate such a dwelling for the displaced person and to pay again all moving and related expenses. If the displaced person chooses not to move from the unit that he occupied following referral, the public entity shall not assert that he is ineligible to receive relocation assistance and benefits on the basis of that unit's failure to satisfy the comparable replacement dwelling standard. (7) Assist each eligible person displaced from his business or farm operation in obtaining and becoming established in a suitable replacement location. (8) Provide any services required to insure that the relocation process does not result in different or separate treatment on account of race, color, religion, national origin, sex, marital status, familial 2 status, or any basis protected by state or federal anti-discrimination laws, or any other arbitrary circumstances. (9) Supply to such eligible persons information concerning federal and state housing programs, disaster loan and other programs administered by the Small Business Administration, and other federal or state programs, offering assistance to displaced persons. (1 0) Provide other advisory assistance to eligible persons in order to minimize their hardships. It is recommended that, as needed, such assistance include counseling and referrals with regard to housing, financing, employment, training, health and welfare, as well as other assistance. (1 1) Inform all persons who are expected to be displaced about the eviction policies to be pursued in carrying out the project, which policies shall be in accordance with the provisions of section 5058. (b) Relocation Office. When a substantial number of persons will be displaced and the relocation staffs office is not easily accessible to those persons. a displacing entity is encouraged to establish at least one appropriately equipped site office which is accessible to all the area residents who may be displaced and is staffed with trained or experienced relocation personnel. Office hours should be scheduled to accommodate persons unable to visit the office during normal business hours. (c) Each displacing entity shall establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the entity's determinations. The procedure shall be in accordance with the requirements of Article 5. lof1 Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260.5 and 7261, Government Code. 6/22/2000 1 : 12 PM Document http://www.calregs.com/cgi-bidom-. . .record={ 75.15 1 } &softpage=Document42 1. Amendment of subsections (a)( 1) and (a)@) and new Note filed 8-1 2-97; operative 9- 1 1-97 (Register 97, No. 33). 96042. Replacement Housing Prior to Displacement; Notices to Displaced Persons. (a) No eligible person shall be required to move from his dwelling unless within a reasonable period of time prior to displacement comparable replacement dwellings (as defined in subsection 6008(c)) or, in the case of a temporary move (as defined in section 6044), adequate replacement dwellings (as defined in subsection (b) below) are available to such person. (b) The criteria for adequate replacement dwellings are in all respects identical to those for comparable replacement dwellings, except that an adequate replacement dwelling, with respect to the number of rooms, habitable living space and type of construction, need be only adequate not comparable. (c) Reasonable Offer of Replacement Housing. The requirements of this section shall be deemed to have been satisfied if a person is offered and refiises without justification reasonable choices of specifically identified comparable replacement dwellings which fully satisfy the criteria set forth in the Guidelines. The offers shall be in writing, in a language understood by the displaced person. The number of offers determined to be reasonable should be not less than three. (d) Notice. No eligible person occupying-property shall be required to move from a dwelling or to move a business or farm operation, without at least 90 days written notice from the public entity requiring the displacements. Public entities shall notify each individual tenant to be displaced as well as each owner-occupant. (These requirements are in addition to those contained in sections 6040 and 6046.) (e) Waiver. The requirement in subsection (a) above may be waived only when immediate possession of real property is of crucial importance and by one of the following circumstances: (1) When displacement is necessitated by a major disaster as defined in Section 102(2) of the Hazard Mitigation and Relocation Assistance Act of 1993 (42 U.S.C. 5 121) and/or the California Natural Disaster Assistance Act. (2) During periods of declared national or state emergency. 1ofI 612212000 1 : 12 PM Document http://www.calregs.com/cgi-bin/om- ... record={ 75~0) &softpage=Document42 Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260.5, 7261 and 7264.5, Government Code. 1-1 I s 1-0 KY 1. Amendment of subsections (a) and (e)(l) and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 86044. Temporary Move. (a) General. (1) A public entity shall be required to minimize to the greatest extent feasible the use of temporary relocation resources (as defined in section 6042) but, when a project plan anticipates moves back into completed project accommodations, temporary relocation resources may be used, at the displaced person's election for a limited period of time. (2) Temporary relocation does not diminish the responsibility of the pubic entity to provide relocation assistance, services and benefits designed to achieve permanent relocation of displaced persons into comparable replacement dwellings. (b) Requirements. (1) Temporary replacement housing may not be relied upon if comparable replacement housing will not be available to the displaced person within 12 months of the date of the temporary move. (2) Prior to the move, the public entity shall have determined and have provided written assurance to each displaced person that: 1of1 6/22/2000 1 : 12 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75A7FJ &softpage=DocumentJ2 (A) Comparable replacement housing will be made available at the earliest possible time but in any event no later than 12 months from the date of the move to temporary housing. Temporarily housed persons may agree to extend the 12 month limitation but, if they do not, the public entity shall ensure that comparable replacement dwellings are available within the 12 month period. (B) Comparable replacement housing will be made available, on a priority basis, to the individual or family who has been temporarily rehoused. (C) The move to temporary housing will not affect a claimant's eligibility for a replacement housing payment nor deprive him of the same choice of replacement housing units that would have been made available had the temporary move not been made and the costs of a temporary move will not be considered as all or a part of the relocation payments to which a displaced person is entitled. (D) If a project plan anticipates moves back into replacement housing accommodations in the project or program area, the person who has been temporarily displaced will be given priority opportunity to obtain such housing accommodations. (E) The public entity will pay all costs in connection with the move to temporary housing, including increased housing costs. 56046. Informational Pro, aram. (a) Basic Requirements. The displacing entity shall establish and maintain an information program that provides for the following: (1) Preparation and distribution of informational material as early as practicable, to each occupant of the property. This material shall be distributed within 60 days following the initiation of negotiations (see paragraph 6040(a)( 1)) and not less than 90 days in advance of displacement except for those situations described in subsection 6042(e). Where appropriate, separate informational statements shall be prepared for residential and for non-residential occupants. (3) Conducting personal interviews aiid maintaining personal contacts with occupants of the property to the maximum extent practicable. (3) Utilizing meetings, newsletters, and other mechanisms, including local media available to all persons, for keeping occupants of the property informed on a continuing basis. The criterion for selecting among various alternatives shall be the likelihood of actually communicating information to such persons. Legal publications, legal ads in local newspapers of general circulation and similar means which may go unnoticed are deemed to be inadequate. (b) Language. Informational material should be prepared in the language(s) most easily understood by the recipients. In displacement areas where there are significant concentrations of persons who do not read, write, or understand English fluently, the native language of the people should be used and all informational material should be provided in the native language(s) and English. 1of1 6/22/2000 1 : 12 PM Doc urn en t http://w~~~w.calregs.com~c~i-bin!om_.. .record=(75ASE}&softpage=Document42 (c) Method of Delivery. To assure receipt of the informational material, the local agency should arrange to have the material either hand-delivered to each occupant of the property with a request for a written receipt, or sent by certified mail, return receipt requested. (d) General and Specific Information. In addition to disseminating general information of the type described in this section, the displacing entity shall also provide each person with individual, written notification as soon as his eligibility status has been established. (e) Content of Informational Statement. Attachment A identifies the kinds of information required to be included in statements distributed to occupants of the property. The figure lists minimum requirements. The displacing entity should include any additional information that it believes would be helpful. (See Attachment A.) Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260, 7260.5 and 726 1, Government Code. 1-1 I STORY 1. Amendment of subsection (a)(l) filed 11-5-76 as an emergency; designated effective 1 1-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 3. Amendment of subsection (a)(l) and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). $6048. Survey and Analysis of Relocation Needs. !of1 (a) (1) Requirement. Immediately following the initiation of negotiations interview all eligible persons, business concerns, including nonprofit organizations, and farm operations to obtain information upon which to plan for housing and other accommodations, as well as counseling and assistance needs. 6/22/2000 1 : 13 PM Docti men t http://www.calregs.com/cgi-bidom- ... record= { 75A9D) &soltpage=Document42 (2) Coordination with Other Agencies. Other agencies may also be conducting surveys in the area at the same time. Coordination will be necessary to avoid duplication and to ensure that necessary information is available at the appropriate time. Surveys utilized to gather data for social service referrals should be planned in cooperation with social service agencies and a referral system should be established. (3) Information to Persons to Be Displaced. The local agency shall carefully explain and discuss fully with each person inteniewed the purpose of the survey and the nature and extent of relocation payments and assistance that will be made available. All persons shall be advised and encouraged to visit the relocation office for information and assistance. (4) Relocation Records. Based on information obtained during the survey and other sources as applicable, the local agency shall prepare and maintain an accurate relocation record for each person to be displaced. The record shall contain a description of the pertinent characteristics of the persons to be displaced and the assistance deemed to be necessary. (b) The survey shall be by direct, personal interview, except where repeated efforts indicate that is not possible. When a person cannot be interviewed or the interview does not produce the information to be obtained reasonable efforts shall be made to obtain the information by other means. Eligible persons should be encouraged to bring any change in their needs to the attention of relocation officials. The survey shall be updated at least annually. (c) A public entity shall endeavor to obtain the following information: income; whether a person is elderly or handicapped; size of family; age of children; location of job and factors limiting accessibility; area of preferred relocation; type of unit preferred; ownership or tenant preference; need for social and public services, special schools and other services; eligibility for publicly assisted housing; and with reference to the present dwelling, the rent, the type and quality of construction, the number of rooms and bedrooms, the amount of habitable living space, and locational factors including among others public utilities, public and commercial facilities (including transportation and schools) and neighborhood conditions (including municipal services). Other matters that concern a household as its members contemplate relocation should also be included. (d) A written analysis of relocation housing needs shall be prepared. It shall be prepared in sufficient detail to enable determination of the availability for all potential displaces of housing which meets the standards set forth in the definition of comparable replacement housing. The information concerning home ownershp and rental units shall be provided separately. The number of units needed shall be identified by cost for each size category. The needs of elderly and handicapped households shall be shown separately and shall include information on the number of such households requiring special facilities and the nature of such facilities. The statement of relocation housing needs shall include a description of the locational characteristics of the displacement area neighborhoods corresponding to the requirements of comparable replacement housing. Information shall be provided concerning proximity to present employment sources, medical and recreational facilities, parks, community centers, shopping, transportation and schools. Information concerning proximity to other relevant needs and amenities is essential to ensuring that no residents are incapacitated by the relocation and such information also should be provided. $6050. Failure to Conduct Timely and Effective Survey. 1 of2 6/22/2000 1 : 13 PM Document http://www.calregs.com/cgi-bidom-.. .record={ 75A9D) &softpage=Docurnent42 When a survey is not conducted in a timely and effective manner, the public entity shall be obligated to make every effort to locate all eligible persons who have moved so that their needs can be included in the survey and the impact on the housing stock in the community can be more accurately determined. The public entity shall offer such persons all relocation assistance and benefits for which they otherwise qualify and, in addition, shall compensate such persons for all costs occasioned by the entity's failure to provide timely notice and offers of relocation assistance and benefits. $6052. Survey and Analysis of Available Relocation Resources. 2 of2 6/22/2000 1 : 13 PM Document http://www.calregs.com/cgi-bin/om_ ... record={ 75AXC}&softpage=Document42 (a) (1) To enable a public entity reasonably to determine that the requisite comparable replacement dwellings will be available. the public entity, within 60 days following the initiation of negotiations, shall initiate a survey and analysis of available comparable relocation resources. If a recent survey that provides the information identified in this section is not available, the public entity shall conduct a survey and analysis of the housing market. If a recent survey is available, but it does not reflect more recent, significant changes in housing market conditions, the survey shall be updated or it shall not be relied upon. (2) When more than 15 households will be displaced, survey results shall be submitted for review to local housing, development and planning agencies and shall be compared to other existing information on housing availability. (3) The survey shall be updated at least annually. (b) The survey area shall be reasonably related to the displacement area and to the needs and preferences of the persons to be displaced, as indicated in the written analysis prepared pursuant to section 6048. The survey area shall have relevant characteristics (see subsection 600S(c)) which equal or exceed those of the neighborhood from which persons are to be displaced. (c) A written analysis of relocation housing resources shall be prepared in sufficient detail to enable determination of the availability for all potential displacees of housing which meets the standards set forth in the definition of comparable replacement housing. The information concerning homeownership and rental units shall be provided separately. The number of units available shall be identified by cost for each size category. Resources available to meet the needs of elderly and handicapped households shall be shown separately and shall include information on the number of units with special facilities and the nature of such facilities. The analysis of resources shall include a description of the locational characteristics of the survey area neighborhoods corresponding to the requirements of comparable replacement housing. Information shall be provided concerning proximity to present employment sources (with the consent of the displaced person a potential employer may be substituted), medical and recreational facilities, parks, community centers, shopping, transportation and schools. Information concerning proximity to other relevant needs and amenities is essential to ensuring that residents are not incapacitated by the relocation and such information should also be provided. (d) (1) Units which do not satisfy the standards of comparable replacement housing, including the locational criteria, shall not be counted as a relocation resource. (2) Uncompleted new construction or rehabilitation shall not be included in the gross figure unless there is a substantial likelihood that the units will be available when needed and at housing or rental costs within the financial means of the prospective occupants. (3) In addition to the other requirements of this section, the gross figure representing the number of units available shall be discounted to reflect both concurrent displacement and the extent to which turnover is represented. Concurrent displacement by the federal government and its agencies, including federally-assisted projects, as well as displacement by other public entities shall be taken into account. Turnover is the dynamic operation by which occupancy changes occur within a standing inventory over a period of time and theoretically could occur in the complete absence of vacancies on a person to person basis. The use of turnover for relocation is not permissible. The displacing entity shall assume that four percent of the rental and one percent of the ownership units which meet the standards of comparable replacement dwellings (see section 600S(c)) represents turnover. The displacing entity shall use a higher percentage figure if such figure is more accurate. The displacing entity may use a lower figure if it establishes that the lower figure is a more accurate assumption. 1 of2 6/22/2000 1 : 13 PM Document http://www.calregs.com/cgi-bidom-. ..record={75AAC}&sofage=Document42 (4) Publicly subsidized housing, including public housing, shall not be counted as a resource unless it reasonably can be established that: (A) The units will be available when needed; (B) The governmental body providing the subsidy has made, in writing, a reasonably binding commitment of assistance; and (C) The units have been inspected and determined to be decent, safe and sanitary and the income ceilings, rent ranges and age restrictions, if any, have been considered. 2 of2 6/22/2000 1 : 13 PM Document littp://www.calregs.com/cgi-bin/~rn~ ... record=~75ABB} &softpage=Document42 (D) The number of units available in the community exceeds the number of households in need of the units. This requirement may be waived by the department if the public entity can establish that such units will be replaced by last resort housing within two years. To establish that last resort housing will be developed as required the public entity must have site control with permissive zoning, preliminary plans and conditional commitments for subsidy and financing or the equivalent. The public entity also must identify ownership. (e) Uncompleted new construction or rehabilitation which is subsidized by public funds shall not be counted as a relocation resource unless the units are being subsidized to provide relocation resources. Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260.5 and 7261, Government Code. 1. Amendment of subsections (a)( 1) and (a)(?), correction of subsection (e) designator, and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). $6054. Last Resort Housing. (a) No eligible person shall be required to move from his dwelling because of the action of a public entity unless comparable replacement housing is available to him. (b) If on the basis of its survey and analysis of relocation needs and resources a public entity cannot determine that comparable replacement housing will be available as required, the public entity may not proceed with any phase of a project or other activity which will result in displacement unless it provides such housing. (See Article 4.) (c) If the action of a public entity has resulted or is resulting in displacement and comparable replacement housing is not available as needed, the public entity shall use its funds, or funds authorized for the project to provide such housing (see Article 4), or shall terminate or suspend further implementation of the project activity in accordance with the provisions of section 60 18. (d) Temporary relocation resources may be relied upon in the interim only if the provisions of section 6004 are satisfied. lofl 6/22/2000 1 : 13 PM Document http://www.calregs.com/cgi-bin/om-...record= { 75ACAJ &softpage=Document42 56056. Termination of Relocation Assistance. A public entity's relocation obligations cease under the following circumstances: (a) A displaced person moves to a comparable replacement dwelling and receives all assistance and payments to which he is entitled. (b) The displaced person moves to substandard housing, refuses reasonable offers of additional assistance in moving to a decent, safe and sanitary replacement dwelling and receives all payments to which he is entitled. (c) All reasonable efforts to trace a person have failed. To ensure that the action of a public entity does not reduce the housing supply in critical categories or locations, unsuccessful efforts to trace a particular displaced person shall not lessen the obligation to provide last resort housing. (See Article 4.) (d) The business concern or farm operation has received all assistance and payments to which it is entitled and has been successfully relocated or has ceased operations. (e) A person displaced from his dwelling, business or farm refuses reasonable offers of assistance, payments and comparable replacement housing. $6058. Eviction. (a) Eviction is permissible only as a last resort. It in no way affects the eligibility of evicted displaced persons for relocation payments. Relocation records must be documented to reflect the specific circumstances surrounding the eviction. 1of1 6/22/2000 1 : 13 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75AD9) &sofipage=Document42 (b) Eviction shall be undertaken only for one or more of the following reasons: (1) Failure to pay rent, except in those cases where the failure to pay is due to the lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of services. (2) Performance of a dangerous, illegal act in the unit. (3) Material breach of the rental agreement and failure to correct breach within 30 days of notice. (4) Maintenance of a nuisance and failure to abate within a reasonable time following notice. (5) Refusal to accept one of a reasonable number of offers of replacement dwellings. (6) The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the public entity. $6060. Evaluation of Relocation. (a) A public entity is encouraged to evaluate its relocation program, assessing the quality and quantity of services provided as well as displacee satisfaction, to determine the adequacy of program planning and to ascertain whether any persons have been denied the full benefits and services to which they are entitled. The evaluation should be based upon an annual or continual inspection of files and records, case interviews, and inspection of replacement housing and business and farm replacement locations and discussions with local individuals or organizations familiar with relocation issues. A written evaluation should be prepared at least annually. (b) The files and records of displaced persons and property owners should be selected at random. The review should include any cases that were identified by previous monitoring as requiring corrective action and should assess the public entity's progress in taking corrective action. Both relocation and acquisition activities should be covered by the review. (1) The relocation sample should include cases in which all payments have been completed and cases in which the person has been displaced but all payments have not yet been made. The sample should provide a basis for the reviewer to determine not only whether payments were computed properly and made promptly, but also whether displaced persons received proper notice of the full range of relocation assistance and services to which they are entitled. Priority attention should be given to cases in which a grievance has been filed or the agency has determined that a person is ineligible for relocation benefits. (2) The acquisition sample should be based on cases in which settlement has been completed. However, if necessary to provide a representative sample of acquisition activities, the reviewer should include incomplete transactions in which negotiations have been initiated. 1of1 6/22/2000 1 : 14 PM Document littp://www.calregs.com/cgi-bin/om~ ... record={ 75AES) &softpage=Document42 (c) After the records and files have been reviewed, the reviewer should select cases for further evaluation through personal interviews with displaced persons andor owners and the inspection of housing to which persons have moved. The interviews and housing inspections should serve both to spot check the accuracy of the information obtained in the examination of the records and files and give the reviewer a better perspective on the agency's performance. The number and type of cases for which interviews and housing inspections are to be carried out should reflect the reviewer's judgment based on the information he has just reviewed. Generally, an interview and inspection should be carried out for at least one of every five cases for which the files and records have been reviewed. Only where the number of persons displaced is less than 25 should the number of interviews and inspections be less than 10. In no case should the number of interviews and inspections be lower than the lesser of five and the number of persons displaced. To the extent possible, the interviews should cover a representative cross section of the types of cases in the agency's workload: e.g., relocation cases involving families of various sizes as well as individuals and business concerns (including both owners and tenants), and acquisition transactions involving residential, commercial and industrial properties. (d) In addition to the above, the following factors are among those which should be considered: (1) The effectiveness of efforts to provide relocation services to displaced persons, including timeliness of notice and correctness of eligibility determinations. (2) The satisfaction of relocated families, individuals and business concerns in their new locations. (3) The extent to which self-moves to substandard housing have been minimized. (4) The effectiveness of efforts to provide relocation services to business concerns, including counseling services and SBA loans to aid in their reestablishment. (5) The promptness of processing claims and the making of payments, including the amounts, delivery, and use of relocation payments. (6) The number and magnitude of rent increases following acquisition and displacement. (7) The effectiveness of methods used to resolve difficulties experienced by site occupants. (8) The effectiveness of the public entity's grievance procedures. (9) The extent of resident involvement in planning the relocation program. (1 0) The effectiveness in assuring equal opportunity for displaced persons and in reducing patterns of minority-group concentration. (1 1) The effectiveness of relocation in upgrading the housing and overall environmental conditions of persons displaced. (1 2) The effectiveness of the social service program, including counseling services, in helping residents adjust to relocation and in helping solve individual and family problems. 1of1 612212000 1:14 PM Document http://www.calregs.com/cgi-bin/om_ ... record={75AF7} &~0fipage=Document42 (1 3) The impact on those segments of the housing market serving the income groups displaced. Article 3. Relocation Pavments $6080. Purpose. The purpose of this Article is to set forth the types of, and specific eligibility criteria for, relocation payments to displaced persons. Basic eligibility conditions are set forth in section 6084. Specific conditions relating to particular payments are described in later sections. $6082. Relocation Payments by Public Entity. A public entity shall make relocation payments to or on behalf of eligible displaced persons in accordance with and to the full extent permitted by this Article. The obligations described in this Article are in addition to those in Article 6. $6084. Basic Eligibility Conditions. 1of1 6/22/2000 1 : 14 PM Document http://www .calregs.com/cgi-bin/om_. . .record={ 75B 06) &sofipage=Document42 A person establishes basic eligibility for relocation payments if he satisfies the conditions described in section 6034. A person who moves from real property or who moves his personal property from real property because he will be displaced from other real property on which he conducts a business or farm operation, establishes eligibility on the basis of the move from such other property only for payments made pursuant to section 6090. $6086. Notice of Intent to Displace. A public entity may issue a written Notice of Intent to Displace at any time after forming a reasonable expectation of acquiring real property. Such a notice, by establishing eligibility prior to acquisition, will enable a public entity to respond to hardship and other situations. $6085. Filing of Claims; Submission of Tax Returns. All claims filed with the public entity shall be submitted within eighteen months of the date on which the claimant receives final payment for the property or the date on which he moves, whichever is later. The displacing entity may extend this period upon a proper showing of good cause. Except where specifically provided otherwise a claimant shall not be required to submit a copy of his tax returns in support of a claim for relocation payments. $6090. Actual Reasonable Moving Expenses. . Note Historv 1 of1 6/22/2000 1 : 14 PM Document http://www.calregs.com/cgi-bin/om- ... record={75B 15) &sotlpage=Document42 (a) General. A public entity shall make a payment to a displaced person who satisfies the pertinent eligibility requirements of section 6054 and the requirements of this section, for actual reasonable expenses specified below and subject to the limitations set forth in subsection (c) of this section for moving himself, his family, business, farm operation or other personal property. In all cases the amount of a payment shall not exceed the reasonable cost of accomplishing the activity in connection with which a claim has been filed. The moving and related expenses for which claims may be filed shall include: (1) Transportation of persons and property not to exceed a distance of 50 miles from the site from which displaced, except where relocation beyond such distance of 50 miles is justified; (2) Packing, crating, unpacking and uncrating personal property; (3) Such storage of personal property, for a period generally not to exceed 12 months, as determined by the public entity to be necessary in connection with relocation; (4) Insurance of personal property while in storage or transit; and (5) The reasonable replacement value of property lost, stolen or damaged (not through the fault or negligence of the displaced person, his agent, or employee) in the process of moving, where insurance covering such loss, theft or damage is not reasonably available. (6) The cost of disconnecting, dismantling, removing, reassembling, reconnecting and reinstalling machinery, equipment or other personal property (including goods and inventory kept for sale) not acquired by the public entity, including connection charges imposed by public utilities for starting utility service. (b) Actual Reasonable Moving Expenses--Displaced Business Concerns and Farm Operations. In addition to those compensable expenses set forth in subsection (a) of this section, a displaced business concern or farm operation may file a claim for the following moving and related expenses: (1) The cost, directly related to displacement of modifying the machinery, equipment, or other personal property to adapt it to the replacement location or to utilities available at the replacement location or modifying the power supply. (2) Claims for payment under this subsection shall be subject to the following limitations: (A) Reimbursable costs shall be reasonable in amount. Iof1 6/22/2000 1 : 15 PM (B) The cost could not be avoided or substantially reduced at an alternate available and suitable site to which the business was referred. (3) The cost of any license. permit or certification required by a displaced business concern to the extent such cost is necessary to the reestablishment of its operation at a new location. (4) The reasonable cost of any professional services (including but not limited to, architects', attorneys' or engineers' fees. or consultants' charges) necessary for planning the move of personal property, moving the personal property, or installation of relocated personal property at the replacement site. (5) Where an item of personal property which is used in connection with any business or farm operation is not moved but is replaced with a comparable item, reimbursement in an amount not to exceed (1) the replacement cost, minus any net proceeds received from its sale, or (2) the estimated cost of moving, whichever is less. (c) Advance Payments. A displaced person may be paid for his anticipated moving expenses in advance of the actual move. A public entity shall provide advance payment whenever later payment would result in financial hardship. Particular consideration shall be given to the financial limitations and difficulties experienced by low and moderate income persons and small farm and business operations. (d) The specific provisions contained in this section are not intended to preclude a public entity's reliance upon other reasonable means of effecting a move, including contracting moves and arranging for assignment of moving expense payments by displaced persons. (e) Self-moves. Without documentation of moving expenses actually incurred, a displaced person electing to self-move may submit a claim for his moving expenses to the public entity in an amount not to exceed an acceptable low bid or an amount acceptable to the displacing entity. (0 Personal Property of Low Value and High Bulk--Business or Farm Operation. Where, in the judgment of the public entity, the cost of moving any item of personal property of low value and high bulk which is used in connection with any business or farm operation would be disproportionate in relation to its value, the allowable reimbursement for the expense of moving such property shall not exceed the difference between the cost of replacing the same with a comparable item available on the market and the amount which would have been received for such property on liquidation. This provision may in appropriate situations be applied to claims involving the inoving of junkyards, stockpiles, sand, gravel, minerals, metals and similar property. (g) Documentation in Support of a Claim. (1) General. Except in the case of a displaced person conducting a self-move as provided in subsection (e) above, a claim for a payment under this section shall be supportcd by a bill or other evidence of expenses incurred. By prearrangement between the public entity, the site occupant, and the mover, evidenced in writing, the claimant or the mover may present an unpaid moving bill to the public entity, and the public entity may pay the mover directly. (3) Business and Farm Operations. Each claim in excess of $1,000 for the costs incurred by a displaced person for moving his business or farm operation shall be supported by competitive bids in such number as are practical. If the public entity determines that compliance with the bid requirement is impractical or if estimates in an amount of less than $1,000 are obtained, a claim may be supported by estimates in lieu of bids. (h) Whenever a public entity must pay the actual cost of moving a displaced person the costs of such move shall be exempt from regulation by the Public Utilities Commission as provided by section 7262(e) of the Act. The public entity may solicit competitive bids from qualified bidders for performance of the work. Bids submitted in response to such solicitations shall be exempt from regulation by the Public Utilities Commission. 1 of2 6/22/2000 1 : 15 PM Document http://www.calregs.com/cgi-bin/om- ... record={ 75B243 &so@age=Document42 (i)( 1) Reestablishment Expenses. In addition to moving expense payments, a farm, nonprofit organization or small business of not more than 500 employees, shall be entitled to actual and reasonable reestablishment expenses, not to exceed $10,000.00. Reestablishment expenses shall be only those expenses that are reasonable and necessary and include, but are not limited to: (A) Repairs or improvements to the replacem'ent property as required by Federal, State or local law, code or ordinance. (B) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. 2 of2 6122120b0 1 : 15 PM Document http:/iwww.calregs.corn/cgi-bin~orn~ ... record={ 75B33) &softpage=Docurnentil? (C) Construction and installation costs for exterior signing to advertise the business. (D) Provision of utilities from right-of-way to improvements on the replacement site. (E) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, panelling or carpeting. (F) Licenses, fees and permits when not paid as part of moving expenses. (G) Feasibility surveys, soil testing and marketing studies. (H) Advertisement of replacement location. (I) Professional services in connection with the purchase or lease of a replacement site. (J) Estimated increased costs of operation during the first 2 years at the replacement site for such items as: 1. Lease or rental charges, 2. Personal or real property taxes, 3. Insurance premiums, and 4. Utility charges, excluding impact fees. (K) Impact fees or one-time assessments for anticipated heavy usage. (L) Other items essential to the reestablishment of the business. (M) For purposes of this subsection the term “small business” shall mean a business having not more than 500 employees working at the site being acquired or displaced by a program or project, which site is the location of economic activity. Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a small business for purposes of this subsection. Iof1 6/22/2000 1 : 16 PM Document http://www.calregs.com/cgi-birdom- ... record={ 7SB12}&softpage=Document42 (2) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible: (A) Purchase of capital assets, such as, office furniture, filing cabinets, machinery, or trade fixtures. (B) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. (C) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in paragraph (i)( 1)(E) of this section. (D) Interest on money borrowed to make the move or purchase the replacement property. (E) Payment to a part-time business in the home which does not contribute materially to the household income. Authority cited: Section 50460, Health and Safety Code. Reference: Section 7262(a)(4), Government Code. HISTORY 1. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 56092. Actual Direct Losses of Tangible Personal Property. 1of1 6/22/2000 1 : 16 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75B5 1 }&softpage=Docurnent42 (a) General. A public entity shall make a payment to a displaced person who satisfies the eligibility requirements of section 6090 and this section, for actual direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, in an amount determined by the public entity to be in accordance with the provisions of this section. (b) Determining Actual Direct Loss of Property. Actual direct loss of property shall be determined on the basis of the lesser of the following: (1) The fair market value of the property for continued use at its location prior to displacement. (2) The estimated reasonable costs of relocating the property. The public entity may require that the owner first make a bona fide effort to sell the property or it may permit the owner not to do so. The proceeds realized from any sale of all or part of the property shall be deducted from the determination of loss. In calculating payment under this section the reasonable cost of an effort to sell shall be added to the determination of loss. (c) Documentation to Support Claim. A claim for payment hereunder shall be supported by written evidence of loss which may include appraisals, certified prices, bills of sale, receipts, cancelled checks, copies of advertisements, offers to sell, auction records, and other records appropriate to support the claim or the public entity may agree as to the value of the property left in place. $6094. Actual Reasonable Expenses in Searching for a Replacement Business or Farm. A displaced person who satisfies the pertinent eligibility requirements of section 6090 with respect to actual reasonable moving expenses, shall be eligible for a payment in an amount not to exceed $1,000, in searching for a replacement business or farm, including expenses incurred for: (a) Transportation; (b) Meals and lodging away from home; (c) Time spent in searching, based on the hourly wage rate of the salary or earnings of the displaced person or his representative; and (d) Fees paid to a real estate agent or broker to locate a replacement business or farm. Iof1 6/22/2000 1 : 16 PM Docu me ti t http://www.calregs.com/cgi-bin/om- ... record={ 75B60}&softpage=Document42 No I'E Authority cited: Section 50460, Health and Safety Code. Reference: Section 7262(a)(3), Government Code. €-I I s I'OKY 1. Amendment of first paragraph and subsection (c) and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). $6096. Moving Expenses--Outdoor Advertising Businesses. A displaced person who conducts a lawful activity primarily for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of outdoor advertising displays is entitled to payment for the reasonable cost of moving such displays or their in-place value, whichever is lesser. $6098. Alternate Payments--Individuals and Families. A person or family, who is displaced from a dwelling and is eligible for a payment for actual reasonable moving expenses under section 6090, may elect to receive and shall be paid, in lieu of such payment a moving expense and dislocation allowance determined in accordance with established Federal Highway Administration schedules maintained by the California Department of Transportation. lofl 6/22/2000 1: 16 PM Document http://www.calregs.com/cgi-binlom- ... record={ 75B6F) &softpage=Document42 NOTE Authority cited: Section 50460, Health and Safety Code. Reference: Section 7262(b), Government Code. 1. Amendment of subsection (a) filed 11-5-76 as an emergency; designated effective 1 1-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 3. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). $6100. Alternate Payments--Businesses and Farm Operations. .. .. . . . . . . . . . .. . . ,... . . , . . ~ . . ... . . ..... . ..... .. . . . . . . . . . . . ... . - .. .... . . . .. .. .. .. . . .. . . ... . . , . _. .. (a) General. (1) A person who is displaced from his place of business or farm operation and is eligible for payments under sections 6090, 6093, 6094, or 6096, and complies with the requirements of this section, nay elect to receive and shall be paid, in lieu of such payments, a payment equal to the average annual net earnings of the business or fm operation (but not including a business as described in section 6096) as determined in accordance with subsection (b) below, except that such payment shall be not less than $1,000 nor more than $20,000. For purposes of this section, the dollar limitation specified in the preceding sentence shall apply to a single business, regardless of whether it is carried on under one or more legal entities. (3) Loss of Goodwill. When payment under this section will precede settlement of a claim for compensation for loss of goodwill under the Eminent Domain Law, the public entity before tendering payment shall state in writing what portion of the payment, if any, is considered to be compensation for loss of goodwill and shall explain in writing that any payment made pursuant to Code of Civil Procedure, Sections 1263.5 10 et seq. (the Eminent Domain Law, Chapter 9, Article 6--“Compensation for Loss of Goodwill”) will be reduced in the same amount. The portion considered to be compensation for loss of goodwill shall not exceed the difference between the payment made under this section and an amount which reasonably approximates the payments for which the displaced person otherwise would be eligible under Sections 6090,6092,.6094, and 6096. Failure to provide such written statement and explanation shall constitute a conclusive indication that no portion of the payment is considered to be compensation for loss of goodwill for the purposes of that portion of the Code of Civil Procedure referenced above. (b) Requirements--Businesses. Payment shall not be made under this section unless the public entity determines that: 1 of2 6/22/2000 1 : 16 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75B6F) &softpage=Document42 2of2 6/22/2000 1 : 16 PM Document http://www.calregs.com/cgi-birdom- ... record={ 75B7E}&softpage=Document42 (1) The business is not operated solely for rental purposes and cannot be relocated without a substantial loss of its existing patronage, based on a consideration of all pertinent circumstances including such factors as the type of business conducted, the nature of the clientele, the relative importance to the displaced business of its present and proposed location, and the availability of a suitable relocation site; (2) The business is not part of a commercial enterprise having no more than three (3) other establishments which are not being acquired for a project and which is engaged in the same or similar business. Whenever the sole remaining facility of a business which has been displaced from its principal location: (A) Has been in operation for less than two years; (B) Has had average annual gross receipts of less than $2,000 during the two taxable years prior to displacement of the major component of the business; or (C) Has had average annual net earnings of less than $1,000 during the two taxable years prior to the displacement of the major component of the business, the remaining facility will not be considered another “establishment” for purposes of this section; and (3) The displaced business: (A) Had average annual gross receipts of at least $5,000 during the two taxable years prior to displacement; or (B) The displaced business had average annual net earnings of at least $1,000 during the two taxable years prior to displacement; or (C) The displaced business contributed at least 33 1/3 percent of the total gross income of the owner(s) during each of the two taxable years prior to displacement. If in any case the public entity determines that the two year period prior to displacement is not representative of average receipts, earnings or income, it may make use of a more representative period. (D) If the application of the above criteria creates an inequity or hardship, the displacing agency may use other criteria as permitted in 49 CFR 24.306. (c) Determination of Number of Businesses. In determining whether one or more legal entities, all of which have been acquired, constitute a single business, the following factors among others shall be considered: (1) The extsnt to which the same premises and equipment are shared. (2) The extent to which substantially identical or intimately interrelated business functions are pursued and business and financial affairs are commingled. (3) The extent to which such entities are held out to the public, and to those customarily dealing with such entities, as one business. lof1 6/22/2000 1 : 17 PM Docuin en t http://www.calregs.com/cgi-bidom- ... record={75B SD} &softpage=Document42 (4) The extent to which the same person or closely related persons own, control or manage the affairs of the entities. (d) Requirements--Farms. In the case of a farm operation, no payment shall be made under this section unless the public entity determines that the farm met the definition of a farm operation prior to its acquisition. If the displacement is limited to only part of the farm operation, the operator will be considered to have been displaced from a farm operation if: the part taken met the definition of a farm operation prior to the taking and the taking caused such a substantial change in the nature of the existing farm operation as to constitute a displacement. (e) Requirements--Nonprofit Organizations. In the case of a nonprofit organization, no payment shall be made under this section unless the public entity determines that: (1) The nonprofit organization cannot be relocated without a substantial loss of its existing patronage (the term “existing patronage” as used in connection with a nonprofit organization includes the membership, persons, community, or clientele served or affected by the activities of the nonprofit organization); and (2) The nonprofit organization is not a part of an enterprise having more than three (3) other establishments not being acquired which is engaged in the same or similar activity. (0 Net Earnings. The term “average annual net earnings” as used in this section means one-half of any net earnings of the business or farm operation, before federal and state income taxes, during the two (2) taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property acquired for such project, or during such other period as the head of the public entity determines to be more equitable for establishing such earnings, and includes any compensation paid by the business or farm operation to the owner, his spouse or his dependents during such period. The term “owner” as used in this section includes the sole proprietor in a sole proprietorship, the principal partners in a partnership, and the principal stockholders of a corporation, as determined by the public entity. For purposes of determining a principal stockholder, stock held by a husband, his wife and their dependent children shall be treated as one unit. (g) If a displaced person who conducts a business or farm operation elects to receive a fixed payment under this section, he shall provide proof of his earnings from the business or farm operation to the agency concerned. Proof of earnings may be established by income tax returns, financial statements and accounting records or similar evidence acceptable to the public entity. NOTE Authority cited: Section 50460, Health and Safety Code. Reference: Section 7262(c), Government Code. 1 of2 1. Amendment of subsection (e)(2) filed 1 1-5-76 as an emergency; designated effective 11-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 3. Amendment of subsections (a)( 1)-(b)(2) and (b)(3)(A), new subsection (b)(3)(D), amendment of subsections (e)(2) and (f), and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 6/22/2000 1 : 17 PM Document http://www.calregs.com/cgi-birdom- ... record={ 75BSD) &softpage=Document42 $6102. Replacement Housing Payments for Homeowners. ...... ....... .... -. ..... ..... ............... .. I ...... - ... ... 2 of2 6/22/2000 1 : 17 PM Document l~ttp:i/www.calregs.com/cgi-bin/om~ ... record= (75B9C) &soApage=Document42 (a) General. A public entity shall make to a person who is displaced from a dwelling and who satisfies the pertinent eligibility requirements of section 6084 and the conditions of subsection (b) of this section, a payment not to exceed a combined total of $22,500 for: (1) The amount, if any, which when added to the acquisition cost of the dwelling acquired for the project equals the reasonable cost, as determined in accordance with subsection (c), of a comparable replacement dwelling. This amount shall not exceed the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling, except where a displaced person, in the circumstance described in paragraph 6108(a)(l), is willing to use the extra money to improve the condition of the dwelling. (2) The amount, if any, to compensate the displaced person for any increased interest costs, as determined in accordance with subsection (c), he is required to pay for financing the acquisition of a replacement dwelling. The payment shall not be made unless the dwelling acquired by the public entity was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days prior to the initiation of negotiations for acquisition of such dwelling. (This time requirement may be modified in accordance with the provisions of subsection (b) below.) (3) Reasonable expenses, determined in accordance with subsection (c) of this section, incurred by the displaced person incident to the purchase of the replacement dwelling. (4) In accordance with section 6 108, the cost of rehabilitating a dwelling which does not satisfy the decent, safe and sanitary standard. (b) Eligibility Conditions. (1) A displaced person is eligible for payment under this section if such person: (A) Is displaced from a dwelling that is acquired; (B) Has actually owned and occupied such dwelling for not less than 180 days prior to the initiation of negotiations for its acquisition; and (C) Purchases and occupies a replacement dwelling within one year subsequent to the date on which he received final payment from the public entity of all costs of the acquired dwelling or the date on which he moves from the acquired dwelling, whichever is later. (2) If an owner satisfies all but the 180 day requirement and can establish to the satisfaction of the public entity that he bought the dwelling with the intention of making it his place of residence, that the move was not motivated by a desire to receive relocation assistance and benefits, and that he neither knew nor should have known that public acquisition was intended the public entity may reduce the requirement as necessary. (3) Where for rcasons beyond the control of the displaced person completion of construction, rehabilitation, or relocation of a replacement dwelling is delayed beyond the date by which occupancy is required, the public entity shall determine the date of occupancy to be the date the displaced person enters into a contract for such construction, rehabilitation, or relocation or for the purchase, upon completion, of a dwelling to be constructed or rehabilitated, if, in fact, the displaced person occupies the replacement dwelling when the construction or rehabilitation is completed. I of 1 6/22/2000 1 : 17 PM Document l~ttp:~/www.calregs.com/c~i-bin~om~ ... record={ 75BXB}&softpage=Document~2 (4) Where, for reasons of hardship or circumstances beyond the control of the displaced person, such person is unable to occupy the replacement dwelling by the required date, the public entity may extend the deadline as necessary, If by the deadline the displaced person has contracted to purchase a replacement dwelling, the public entity should extend the deadline. (5) No person otherwise eligible for a payment under this section or under section 61 03 shall be denied such eligibility as a result ofhis being unable, because of a major state or national disaster, to meet the occupancy requirements. (c) Coniputation of Replacement Housing Payment. (1) Cost of Comparable Replacement Dwelling. (A) In determining the reasonable cost of a comparable replacement dwelling, the public entity concerned shall use one of the following methods: 1. Comparative Method. On a case-by-case basis by determining the listing price of dwellings which have been selected by the public entity and which are most representative of the acquired dwelling unit and meet the definition of comparable replacement dwelling set out in subsection 6008(c). Whenever possible the listing price of at least three dwellings shall be considered. 2. Schedule Method. Where the public entity determines that the comparative method is not feasible, it may establish a schedule of reasonable acquisition costs for the various types of comparable replacement dwellings. If more than one entity is administering a project causing displacement in the area, it shall cooperate with the other entities in establishing a uniform schedule for the area. The schedule shall be based on a current analysis of the market to determine a reasonable cost for each type of dwelling to be purchased. In large urban areas this analysis may be confined to the sub-area from which persons are displaced or may cover several different sub-areas, if they satisfy or exceed the criteria listed in subsection 6008(c). To assure the greatest comparability of dwellings in any analysis, the analysis shall be divided into classifications of the type of construction, number of bedrooms, and price ranges. 3. Alternative Method. Where the public entity determines that neither the schedule, nor comparative method is feasible in a given situation, by the use of another reasonable method. (B) Whichever method is selected the cost shall be updated to within three months of the date of purchase of the replacement dwelling. (2) Interest Payments. Interest payments shall be equal to the discounted present value of the difference between the aggregate interest applicable to the amount of the principal of the mortgage on tile acquired dwelling over its remaining term at the time of acquisition, and other debt service costs, and the aggregate interest paid on the mortgage on the replacement dwelling, and other debt service costs. The term and amount of the mortgage on the replacement dwelling for purposes of this paragraph shall be the lesser of the remaining term and amount of the mortgage on the acquired dwelling, or the actual term and amount of the mortgage on the replacement dwelling. The amount of the debt service cost with respect to the replacement dwelling shall be the lesser of the debt service cost based on the cost required for a comparable dwelling, or the debt service cost based on the actual cost of the replacement dwelling. Prepaid interest or “points” shall be considered in the determination of aggregate interest. In calculating the amount of compensation, increased interest cost shall be reduced to discounted present value using the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located. (3) Expenses Incident to the Purchase of the Replacement Dwelling. 1 of2 6/22/2000 1 : 17 PM Document http://www.calregs.com/cgi-bin/om- ... record=(75BAB 1 &soflpage=Docurnent42 Payment under this section shall include the amount necessary to reimburse the displaced person for actual costs incurred by him incident to the purchase of the replacement dwelling, including but not limited to the following: legal, closing, and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings or plats, and charges paid incident to recordation; lender, FHA, VA or similar appraisal cost; FHA, VA or similar application fee; cost for certification of structural soundness; credit report charges; charge for owner's and mortgagee's evidence or assurance of title; escrow agent's fee; and sales or transfer taxes. Payment for any such expenses shall not exceed the amount attributable to the purchase of a replacement dwelling. Such expenses shall be reasonable and legally required or customary in the community. Reimbursement shall not be made under the provisions of this paragraph for any fee, cost, charge, or expense which is determined to be a part of the debt service or finance charge under Title I of the Truth in Lending Act (Pub. L. 90-321), and Regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System. Any such sum should be considered in the determination of interest payments. 2 of2 6/22/2000 1 : 17 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75BB~}&softpage=Document42 (d) Multi-family Dwelling. In the case of a displaced homeowner who is required to move from a one-family unit of a multi-family building which he owns, the replacement housing payment shall be based on the cost of a comparable one-family unit in a multi-family building of approximately the same density or if that is not available in a building of the next less density, or, if a comparable one-family unit in such a multi-family building is not available, the cost of an otherwise comparable single-family structure. (e) Owner Retention. (1) If a displaced homeowner elects to retain, move, and occupy his dwelling, the amount payable under this section is the difference between the acquisition price of the acquired property and the sum of the moving and restoration expenses, the cost of correcting decent, safe, and sanitary deficiencies, if any, and the actual purchase price of a comparable relocation site. A public entity may limit the payment made under this subsection to the amount of the replacement housing payment for which the homeowner would otherwise be eligible. (2) The payment shall not exceed $22,500. (f) Provisional Payment Pending Condemnation. If the exact amount of a replacement housing payment cannot be determined because of a pending condemnation suit, the public entity concerned may make a provisional replacement housing payment to the displaced homeowner equal to the difference between the public entity’s maximum offer for the property and the reasonable cost of a comparable replacement dwelling, but only if the homeowner enters into an agreement that upon final adjudication of the condemnation suit the replacement housing payment will be recomputed on the basis of the acquisition price determined by the court. If the acquisition price as determined by the court is greater than the maximum offer upon which the provisional replacement housing payment is based, the difference will be refunded by the homeowner to the public entity. If the acquisition price as determined by the court is less than the maximum offer upon which the provisional replacement housing payment is based, the difference will be paid to the homeowner. (g) Lease of Condominium. For the purposes of this section, the leasing of a condominium for a 99-year period, or for a term which exceeds the life expectancy of the displaced person as determined by the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education and Welfare, shall be deemed a purchase of the condominium. Authority cited: Section 50460, Health and Safety Code. Reference: Section 7263, Government Code. I of2 I. Amendment of subsections (a)(l) and (a)(4) and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 2. Amendment of subsection (e)(2) filed 10-7-99; operative 1 1-6-99 (Register 99, No. 4 1). 6/22/2000 1 : 17 PM Document 2 of2 http://www.calregs.com/cgi-bidom-.. .record={75BBA} &soflpage=Document42 $6104. Replacement Housing Payments for Tenants and Certain Others. 6/22/2000 1 : 17 PM Dociiment http://www.calregs.com/cgi-bin/om~ ... record={75BC9} &Softpage=Document42 (a) General. A public entity shall make to a displaced person who satisfies the eligibility requirements of section 6051 and the conditions of subsection (b) below, a payment not to exceed $5,250 for either: (1) An amount, computed in accordance with paragraph (d)( 1) of this section, necessary to enable such person to lease or rent a replacement dwelling for a period not to exceed 42 months2; or (2) An amount, computed in accordance with paragraph (d)(2) of this section, necessary to enable such person to make a downpayment on the purchase of a replacement dwelling (including incidental expenses described in section 6 102). (b) Eligibility Conditions. A displaced person is eligible for the payments specified in subsection (a) if he satisfies the following conditions: (1) Has occupied the dwelling from which he is displaced for a period of not less than 90 days prior to the initiation of negotiation for acquisition of such dwelling. (2) Is not eligible to receive a replacement housing payment for homeowners under section 6 102 or elects not to receive such payment. Where the displaced person is the owner-occupant of the dwelling, the payment made under paragraph 6 104(a)(2) shall not exceed the amount of payment to which the person would be eligible under section 6 102. (3) Whenever a payment under subsection (a)(2) is sought the displaced person shall within one year from the date of displacement purchase and occupy a replacement dwelling. (c) The provisions in subsection 6 102(b) for modifying the conditions of eligibility also apply to this section. (d) Computation of Payment. (1) Rentals. Except for projects commenced prior to January 1, 1998 (see footnotes 1 and 2) the amount of payment necessary to lease or rent a comparable replacement dwelling, under subsection (a)( l), shall be computed by subtracting 42 times the base monthly rental of the displaced person (as determined in accordance with this subsection), from 42 times the monthly rental for a comparable replacement dwelling (as determined in accordance with this subsection): Provided, that in no case may such amount exceed the difference between 42 times the base monthly rental as determined in accordance with this subsection and 42 times the monthly rental actually required for the replacement dwelling occupied by the displaced person. (A) Base Monthly Rental. The base monthly rental shall be the lesser of the average monthly rental paid by the displaced person for the 3-month period prior to initiation of negotiations or 30 percent of the displaced person's average monthly income. (See subsection 6008( l).) Where the displaced person was the owner of the dwelling from which he was displaced or was not required to pay rent for that dwelling, the economic rent (see subsection 6008(h)) shall be used in lieu of the average monthly rental to calculate base monthly rental. (B) Comparable Rental. The monthly rental for a comparable replacement dwelling shall be the amount of rent determined by the public entity by one of the methods described in paragraph 6 102(c)( I), considering rental charges instead of listing price or acquisition cost. 1of1 612212000 1 : 17 PM Document littp:.’lwww.calregs.com/cgi-bin/om- ... record={ 75BD8}&softpage=Document4‘ (C) Whichever method is selected the cost shall be updated to within three months of the date of rental of the replacement dLvelling. (2) Downpayment. The dounpayment for which a payment specified under paragraph (a)(2) of this section may be made, shall not exceed the amount of a reasonable downpayment for the purchase of a comparable replacement dwelling where such’purchase is financed, plus expenses incident to the purchase of a replacement dwelling computed in accordance with Section 6 103. The full amount of a downpayment under this section shall be applied to the purchase of the replacement dwelling and shall be shown on the closing statement or other document acceptable to the public entity. (e) Rental Payments for Displaced Owners and Dependents. (1) Owners. A displaced ou-ner who elects to rent rather than purchase a replacement dwelling and who meets the eligibility conditions specified in subsection (b) is eligible for the payment specified in paragraph (a)(l). (2) Dependents. A dependent who is residing separate and apart from the person or family providing support, whether such separate residence is permanent or temporary, shall be entitled to payment under this section, but such payment shall be limited to the period during which the displaced dependent resides in the replacement dwelling. At the time the displaced dependent vacates that dwelling, no further payment under this section shall be made to such person. For the purposes of this paragraph a ‘dependent’ shall be a person who derives fifty-one percent or more of his income in the form of gifts from any private person or any academic scholarship or stipend. Full-time students shall be presumed to be dependents but may rebut this presumption by demonstrating that fifty percent or more of their income is derived from sources other than gifts from another private person or academic scholarships or stipends. Dependents residing with the family of which they are a part shall not be entitled to any payment except as a part of the family. (f) Disbursement. Except where specifically provided otherwise, the public entity shall have the authority to disburse payments under this section in a lump sum, monthly or at other intervals acceptable to the displaced person. ‘For those who, pursuant to the criteria set forth in Government Code section 7260(i)(3)(A) through (J), would have qualified as a “displaced person” prior to January 1, 1998, benefits shall be provided for 48 months provided they do not exceed $5,250. Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260(i) and 7264, Government Code. I of2 1. Amendment of subsections (a), (a)(2), (d)(l), (d)(l)(A) and (d)(2) and new Note filed 8- 12-97; operative 9- 1 1-97 (Register 97, No. 33). 2. Amendment of subsection (a)(l) and (d)(l)-(d)(l)(A) filed 10-7-99; operative 11-6-99 (Register 99, No. 41). 6/22/2000 1:17 PM Document http://www.calregs.com/cgi-bin/om~ ... record={75BD8)&so~age=Document42 2of2 6/22/2000 1 : 17 PM Document http://www.calregs.com/cgi-bin/om~ ... record=~75BE7} &softpage=Document42 $6106. Proration of Payments. For the purpose of calculating an alternate payment under section 6098 or a replacement housing payment under section 6 103 or 6104, two or more individuals (whether they are members of one family or not) living together in and displaced from a single dwelling shall be regarded as one person. Where a tenant is sharing a single-family dwelling with an owner-occupant and paying the owner-occupant rent for the privilege, the tenant shall not be entitled to more than one-half of the rental supplement otherwise payable. The owner-occupant shall not be required to share the payment to which he is entitled or accept a prorated amount. Hi STO RY 1. Amendment filed 1 1-5-76 as an emergency; designated effective 1 1-27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). $6108. Condition of Replacement Dwelling. (a) When a displaced person qualifies for a replacement housing payment (under section 6102 or 6 104) by purchasing or renting a replacement dwelling, the unit, as a general rule, must be decent, safe and sanitary. There are three exceptions. One is described in paragraph 6040(a)(6). The others are: Iof1 6/22/2000 1 : 18 PM Document http://www.calregs.com/cgi-bin/om_ ... record=~75BF6} &softpage=Document42 (1) If the purchase of such a dwelling is the result of the public entity's failure to identify a reasonable number of comparable replacement dwellings as required or if the dwelling is one to which the person was referred by the public entity, the condition of the dwelling does not affect eligibility for a replacement housing payment. (2) If the purchase of such a dwelling is not the result of a public entity's referral or failure to refer, the otherwise eligible person qualifies for a replacement housing payment if the unit is brought into compliance with the decent. safe and sanitary standard. In this situation payment shall be limited to the amount that would be provided in connection with the purchase of a similar, comparable replacement dwelling or the sum of the actual costs of acquisition (including related expenses) and rehabilitation, whichever is less. (b) A public entity shall not induce or encourage a displaced person to acquire a dwelling which does not satisfy the comparable replacement housing standard. (See section 6008(c).) $6110. Certificate of Eligibility. Upon request by a displaced homeowner or tenant who has not yet purchased and occupied a replacement dwelling, but who is otherwise eligible for a replacement housing payment, the public entity concerned shall certify to any interested party, financial institution, or lending agency, that the displaced homeowner or tenant will be eligible for the payment of a specific sum if he purchases and occupies a dwelling within the time limits prescribed. 56112. Manufactured Homes and Mobilehomes. (a) General. A manufactured home or mobilehome is a dwelling. (See subsection 6008(g).) A person displaced from a manufactured home or mobilehome must satisfy the same eligibility requirements and must be provided the same assistance, assurance and payments as a person displaced from a conventional dwelling. (b) Moving Expenses. If a manufactured home or mobilehome is moved to another site, the displaced person shall be compensated for moving expenses in accordance with sections 6090 and 6092. The provisions of these sections which generally apply only to businesses and farms shall also apply to displaced persons who move a manufactured home or mobilehome. (c) Replacement Housing Payments. 1 of2 6/22/2000 1 : 18 PM Document http:i/www.calregs.com/cgi-bidom- ... record={ 75COS}&sofipage=Document42 (1) A person who owns a manufactured home or mobilehome and site and as a replacement purchases both a dwelling and site shall be provided a replacement housing payment in accordance with section 6 102.. A person who owns a manufactured home or mobilehome and site, and as a replacement rents both a dbvellingmd site, shall be provided a payment in accordance with section m. . (2) A person who rents a manufactured home or mobilehome and site, and as a replacement rents or purchases a dwelling and site, shall be provided a payment in accordance with section 6 104. (3) A person who owns a manufactured home or mobilehome and site, and as a replacement purchases a dwelling and rents a site, shall be provided a payment in accordance with sections 6 102 and (,104. The payment shall be limited to the lesser of: (A) The amount necessary to purchase a conventional comparable replacement manufactured home and mobilehome; or (B) The amount necessary to purchase a replacement manufactured home or mobilehome (in accordance with section 6 102) plus the amount necessary to rent a replacement site (in accordance with scction 6 104). In calculating this amount, the economic rent for the site shall be used in lieu of average monthly rental to determine the base monthly rental (as provided in paragraph 6104(d)(l)). (4) A person who owns a site from which he moves a manufactured home or mobilehome shall be provided a replacement housing payment under section 6 102 if he purchases a replacement site and under section 6 104 if he rents a replacement site. (5) A person who owns a manufactured home or mobilehome which is acquired and rents the site shall be provided payment as follows: (A) If a manufactured home or mobilehome, as appropriate, is not available the amount required to purchase a conventional replacement dwelling (in accordance with section 6 102); (B) The amount necessary to purchase a replacement manufactured home or mobilehome (in accordance with section 61 02) plus the amount necessary to lease, rent or make a downpayment on a replacement site (in accordance with section 6 104); or (C) If he elects to rent a replacement manufactured home or mobilehome and site, the amount required tc do so in accordance with section 6 104. In calculating this payment, the average monthly rental shall equal the economic rent for the manufactured home or mobilehome plus the actual rent for the site. (6) Similar principles shall be applied to other possible combinations of ownership and tenancy upon which a claim for payment might be based. 1of1 Authority cited: Section 50460, Health and Safety Code. Reference: Sections 18007 and 18008, Health and Safety Code. 6/22/2000 1 : 18 PM Document http:iiwww.calregs.com/cgi-bin/om- ... record=~75C 1 -l> &softpage=Document42 1. Amendment of section and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 56114. Affected Property. (a) In addition to the payments required by Section 7262 of the Act (see sections 6090, 6092, 6094, -- 6096, 6098 and 6 loo), as a cost of acquisition, the public entity shall make a payment to any affected property owner meeting the requirements of this section. (b) Such affected property is immediately contiguous to property acquired for airport purposes and the owner shall have owned the property affected by acquisition by the public entity not less than 180 days prior to the initiation of negotiation for acquisition of the acquired property. (c) Such payment, not to exceed fifteen thousand dollars ($22,500), shall be the amount, if any, which equals the actual decline in the fair market value of the property of the affected property owner caused by the acquisition by the public entity for airport purposes of other real property and a change in the use of such property. (d) The amount, if any, of actual decline in fair market value of affected property shall be determined according to rules and regulations adopted by the public entity. Such rules and regulations shall limit payment under this section only to such circumstances in which the decline in fair market value of affected property is reasonably related to objective physical change in the use of acquired property. (e) “Affected property” means any real property which actually declines in fair market value because of acquisition by a public entity for public use of other real property and a change in the use of the real property acquired by the public entity. 1. Amendment of subsection (c) filed 10-7-99; operative 1 1-6-99 (Register 99, No. 4 1). Article 4. Last Resort Housing $6120. Purpose. 1 of1 6/22/2000 1: 18 PM Document http://www.calregs.com/cgi-bin/om- ... record= { 75C23 ] &softpsge=Document42 The purpose of this part is to set forth the criteria and procedures for assuring that if the action of a public entity results, or will result in displacement, and comparable replacement housing will not be available as needed, the public entity shall use its funds or funds authorized for the project to provide such housing. 86122. Determination of Need for Last Resort Housing. If on the basis of data derived from surveys and analyses which satisfy the requirements of sections 6048 and 6052, the public entity is unable to demonstrate that comparable replacement housing will be available as required, the head of the public entity shall determine whether to use the public entity's funds or the funds authorized for the project to provide such necessary replacement housing or to modify, suspend or terminate the project or undertaking. $6124. Development of Replacement Housing Plan. (a) General. (1) Following the determination pursuant to section 6122, the head of the displacing public entity shall develop or cause to be developed a replacement housing plan to produce a sufficient number of comparable replacement dwellings. The plan shall specify how, when and where the housing will be provided, how it will be financed and the amount of funds to be diverted to such housing, the prices at which it will be rented or sold to the families and individuals to be displaced, the arrangements for housing. management and social services as appropriate, the suitability of the location and environmental impact of the proposed housing, the arrangements for maintaining rent levels appropriate for the persons to be rehoused, and the disposition of proceeds from rental, sale, or resale of such housing. If a referendum requirement or zoning presents an obstacle, the issue shall be addressed. 1of1 6/22/2000 I : 18 PM Document http://www .calregs.com/cgi-binlom~...record=(75CZ2) &sofipage=Document~~ (2) All contracts and subcontracts for the construction, rehabilitation or management of last resort housing shall be let without discrimination as to race, sex, marital status, color, religion, national origin. ancestry or other arbitrary circumstance and pursuant to an affirmative action program. The public entity shall encourage participation by minority persons in all levels of construction, rehabilitation, planning, financing and management of last resort housing. When the housing will be located in an area of minority concentration, the public entity shall seek to secure significant participation of minorities in these activities. The public entity shall require that, to the greatest extent feasible, opportunities for training and employment arising in connection with the planning, construction, rehabilitation, and operation of last resort housing be given to persons of low income residing in the area of such housing and shall determine and implement means to secure the participation of small businesses in the performance of contracts for such work. (b) Citizen Participation. (1) If the need for last resort housing exceeds 25 units, the head of the displacing public entity shall establish a committee which will consult with and provide advice and assistance to the displacing public entity in the development of the plan. The committee should include appointed representatives of the displacing entity and state and local agencies knowledgeable regarding housing in the area, including but not limited to the local housing authority and the central relocation agency, if any. In addition, the committee should include representatives of other appropriate public groups (for example, local and areawide planning agencies) and private groups knowledgeable regarding housing and the problems of housing discrimination. (2) The committee shall include representatives of the residents to be displaced. These representatives may be appointed by the displacing entity or elected by the residents, as the residents wish. Resident representatives shall, at a minimum, constitute one-third of the committee membership. Votes shall be allocated so that the total votes of resident representatives shall equal one-half of the total votes of the committee membership. (3) The plan must be approved by the vote of a simple majority of the committee membership. In the event the committee fails to approve the plan, the local governing body or, where the displacing entity is a state agency, the head of the state agency may substitute its approval. (c) Consultation with Other Housing Agencies and Organizations. The head of the displacing public entity may consult or contract with the department, a local housing authority, or other agency or organization having experience in the administration or conduct of housing programs to provide technical assistance and advice in the development of the replacement housing plan. 56126. Submission of Plan for Comment. 1 of2 The head of the displacing public entity shall submit the plan and all significant amendments to the local housing and planning agencies for comment and to assure that the plan accurately reflects housing conditions and needs in the relocation area. Reviewing agencies shall have 30 calendar days following receipt of the plan to prepare their comments. Copies of all comments received shall be forwarded to the Committee and available to all interested persons. Document http://www.calregs.com/cgi-bidom-.. .record={75C32} &softpage=Document42 General notice of the plan shall be provided. Notice shall be designed to reach the residents of the relocation aiea; it shall be in accordance with the provisions of paragraph 6046(a)(3) and subsection - 6046(b); and it shall be provided 30 days prior to submission to the committee, or the local governing body or head of state agency for approval. NOTE Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7260.5(a)(5) and 7264.5, Government Code. 2 of2 6/22/2000 1 : 18 PM Document http://www.calregs.corn/cgi-binlo rn-... record={75C-! 1 } &softpage=Document42 1. Amendment of first paragraph and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 96128. Determination by Displacing Public Entity of Feasibility and Compliance. Upon receipt and consideration of the comments, the displacing public entity shall determine whether or not: (a) The plan is feasible. (b) The plan complies with applicable environmental standards and procedures. (c) The plan is compatible with the local general plan and housing element and the areawide housing plan or strategy. If any of the above determinations by the displacing public entity is negative the displacing public entity shall revise the plan as necessary. Substantial modifications in the plan shall be submitted for review and comment as provided in section 6126. If necessary for timely implementation of the plan or execution of the project, the head of the displacing public entity may shorten the time allowed in section 6 126 for review of modifications. 36130. Implementation of the Replacement Housing Plan. 1of1 6/22/2000 1 : 19 PM Document http://www.calregs.com/cgi-bin/om~ ... record={7SC~O} &softpage=Document42 Upon making the determinations required by section 6 128, the head of the displacing entity may expend funds and take such other actions as necessary to provide, rehabilitate, or construct replacement housing pursuant to the approved replacement housing plan through methods including but not limited to the following: (a) Transfer of funds to state and local housing agencies. (b) Contract with organizations experienced in the development of housing. (c) Direct construction by displacing public entity. Whenever practicable, the head of the displacing public entity should utilize the services of federal, state, or local housing agencies, or other agencies having experience in the administration or conduct of similar housing programs. $6132. Housing Production. The head of the displacing public entity shall monitor the production of the last resort housing to ensure that it is in accordance with the plan. $6134. Jointly Sponsored Development. I of1 6/22/2000 1 : 19 PM Document http://www.calregs.com/cgi-bin/om~ ... record={75C~F}&so~pa~e=Document~2 Where several agencies are administering programs resulting in residential displacement, opportunities shall be sought for joint development and financing to aggregate resources in order most efficiently to provide replacement housing in sufficient quantity to satisfy the aggregate needs of such programs. $6136. Last Resort Housing in Lieu of Payments. A public entity shall not require a displaced person to accept a dwelling provided pursuant to this Article in lieu of the displaced person's acquisition payment, if any, for the real property from which he is displaced or the relocation payments for which he may be eligible. $6138. Conformity with the Act and Other Statutes, Policies and Procedures. (a) Civil Rights and Other Acts. The administration of this Article shall be in accord with the provisions of all applicable federal and state non-discrimination laws and regulations issued pursuant thereto. (b) Dwelling and Relocation Standards. Determinations made pursuant to section 6 122 and any plan developed and implemented for providing replacement housing and all such housing provided thereunder shall be in conformity with the standards established in the Act and Guidelines. Authority cited: Section 50460, Health and Safety Code. Reference: Section 7260.5(~)(4), Government Code. 1-1 I S1'0 R 1' 1 of1 6/22/2000 1: 19 PM Document http://www.calregs.com/cgi-bin/om- ... record={ 75C6E) &softpage=Document42 1. Amendment of subsection (a) and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 86139. Last Resort Housing. (a) Whenever comparable replacement dwellings are not available, or are not available within the monetary limits of Government Code sections 7263 and 7264, as appropriate, the displacing agency shall provide additional or alternative assistance under the provisions of this part. (b) The methods of providing replacement housing of last resort include, but are not limited to: (1) A replacement housing payment calculated in accordance with the provisions of sections 6102 or 6104, as appropriate, even if the calculation is in excess of the monetary limits of Government Code sections 7263 and 7264. A rental assistance payment under this part shall be paid to the displaced person in a lump sum, or at the discretion of the displacing agency, $5,250 shall be paid to the displaced person in a lump sum upon displacement and the remainder of the payments shall be paid to the displacee in periodic payments over a period not to exceed 42 months unless otherwise specified by statute. (2) Major rehabilitation of and/or additions to an existing replacement dwelling in a sum equal to or greater than the payment to which the displaced person is entitled under subsection (b)( 1). (3) The construction of a new replacement dwelling in a sum equal to or greater than the payment to which the displaced person is entitled under subsection (b)( 1) of this section. (4) The relocation and, if necessary, rehabilitation of a dwelling. (5) The purchase of land and/or a replacement dwelling by the displacing agency and subsequent sale or lease to, or exchange with a displaced person. (6) For purposes of accommodating the needs of handicapped persons, the removal of barriers to the handicapped. (c) Only at the discretion of displacing agencies are post-acquisition tenants entitled to last resort housing payments. 1of1 6/22/2000 1 : 19 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75C7D) &softpage=Document42 Authority cited: Section 50460, Health and Safety Code. Reference: Sections 7263, 7264 and 7264.5, Government Code. 1. New section filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). 2. Amendment of subsection (b)( 1) filed 10-7-99; operative 1 1-6-99 (Register 99, No. 41). Article 5. Grievance Procedures $6150. Purpose. The purpose of this article is to set forth guidelines for processing appeals from public entity determinations as to eligibility, the amount of payment, and for processing appeals from persons aggrieved by a public entity's failure to refer them to comparable permanent or adequate temporary replacement housing. Public entities shall establish procedures to implement the provisions of this Art ic 1 e. 56152. Right of Review. 1of1 6/22/2000 1 : 19 PM Document http://www.caIregs. com/cgi-bidom-. . .record= { 75 C 3 C ] &so ftpage=Document42 (a) Any complainant, that is any person who believes himself aggrieved by a determination as to eligibility, the amount of payment, the failure of the public entity to provide comparable permanent or adequate temporary replacement housing or the public entity's property management practices may, at his election, have his claim reviewed and reconsidered by the head of the public entity or an authorized designee (other than the person who made the determination in question) in accordance with the procedures set forth in this article, as supplemented by the procedures the public entity shall establish for such review and reconsideration. (b) A person or organization directly affected by the relocation plan may petition the department to review the final relocation plan of a public entity to determine if the plan is in compliance with state laws and guidelines or review the implementation of a relocation plan to determine if the public entity is acting in compliance with its relocation plan. Review undertaken by the department under this section shall be in accordance with the provisions of sections 6 158 and may be informal. Before conducting an investigation, the department should attempt to constrain disputes between parties. Failure to petition the department shall not limit a complainant's right to seek judicial review. (c) If a relocation appeals board has been established pursuant to Section 3341 7.5 of the Health and Safety Code, a city by ordinance may designate the board to hear appeals from local public entities which do not have an appeal process. In the absence of such an ordinance, public entities shall establish procedures to implement the provisions of this Article. NOTE Authority cited: Section 50460, Health and Safety Code. Reference: Section 7266, Government Code. 1. Amendment of subsection (b) and new Note filed 8-12-97; operative 9-1 1-97 (Register 97, No. 33). S6154. Notification to Complainant. 1 of2 If the public entity denies or refuses to consider a claim, the public entity's notification to the complainant of its determination shall inform the complainant of its reasons and the applicable procedures for obtaining review of the decision. If necessary, such notification shall be printed in a language other than English in accordance with section 6046. 6/22/2000 1 :20 PM Document http:liwww.calregs.com/cgi-bin/orn- ... record={ 75C9B) &softpage=Docurnent42 $6156. Stages of Review by a Public Entity. (a) Request for Further Written Information. A complainant may request the public entity to provide him with a full written explanation of its determination and the basis therefore, if he feels that the explanation accompanying the payment of the claim or notice of the entity's determination was incorrect or inadequate. The public entity shall provide such an explanation to the complainant within three weeks of its receipt of his request. (b) Informal Oral Presentation. A complainant may request an informal oral presentation before seeking formal review and reconsideration. A request for an informal oral presentation shall be filed within the period described in subsection (d) of this section, and within 15 days of the request the public entity shall afford the complainant the opportunity to make such presentation. The complainant may be represented by an attorney or other person of his choosing. This oral presentation shall enable the complainant to discuss the claim with the head of the public entity or a designee (other than the person who made the initial determination) having authority to revise the initial determination on the claim. The public entity shall make a summary of the matters discussed in the oral presentation to be included as part of its file. The right to formal review and reconsideration shall not be conditioned upon requesting an oral presentation. (c) Written Request for Review and Reconsideration. At any time within the period described in subsection (d) a complainant may file a written request for formal review and reconsideration. The complainant may include in the request for review any statement of fact within the complainant's knowledge or belief or other material which may have a bearing on the appeal. If the complainant requests more time to gather and prepare additional material for consideration or review and demonstrates a reasonable basis therefor, the complainant's request should be granted. (d) Time Limit for Requesting Review. A complainant desiring either an informal oral presentation or seeking a formal review and reconsideration shall make a request to the public entity within eighteen months following the date he moves from the property or the date he receives final compensation for the property, whichever is later. $6158. Formal Review and Reconsideration by the Public Entity. 1 of2 6/22/2QQO 1 :20 PM Document http://www.~alregs.corn/cgi-bin/om~ ... record={ 75C9B )&softpage=Document42 (a) General. The public entity shall consider the request for review and shall decide whether a modificatioil of its initial determination is necessary. This review shall be conducted by the head of the public entity or an authorized, impartial designee. (The designee may be a committee). A designee shall have the authority to revise the initial determination or the determination of a previous oral presentation. The public entity shall consider every aggrieved person's complaint regardless of form, and shall, if necessary provide assistance to the claimant in preparing the written claim. When a claimant seeks review, the public entity shall inform him that he has the right to be represented by an attorney, to present his case by oral or documentary evidence, to submit rebuttal evidence, to conduct such cross-examination as may be required for a full and true disclosure of facts, and to seek judicial review once he has exhausted administrative appeal. (b) Scope of Review. The public entity shall review and reconsider its initial determination of the claimant's case in light of: (1) All material upon which the public agency based its original determination including all applicable rules and regulations, except that no evidence shall be relied upon where a claimant has been improperly denied an opportunity to controvert the evidence or cross-examine the witness. 2of2 6/22/2000 1:20 PM Document http://www.calregs.com/cgi-bin/om_ ... record={75CAX 1 &sofipage=Document42 (2) The reasons given by the claimant for requesting review and reconsideration of the claim. (3) Any additional written or relevant documentary material submitted by the claimant. (4) Any further information which the public entity in its discretion, obtains by request, investigation, or research, to ensure fair and full review of the claim. (c) Determination on Review by Public Entity. (1) The determination on review by the public entity shall include, but is not limited to: (A) The public entity's decision on reconsideration of the claim. (B) The factual and legal basis upon which the decision rests, including any pertinent explanation or rationale. (C) A statement to the claimant of the right to further administrative appeal, if the public entity has such an appeal structure, or if not, a statement to the claimant that administrative remedies have been exhausted and judicial review may be sought. (2) The determination shall be in writing with a copy provided to the claimant. (d) Time Limits. (1) The public entity shall issue its determination of review as soon as possible but no later than 6 weeks from receipt of the last material submitted for consideration by the claimant of the date of the hearing, whichever is later. (2) In the case of complaints dismissed for untimeliness or for any other reason not based on the merits of the claim, the public entity shall furnish a written statement to the claimant stating the reason for the dismissal of the claim as soon as possible but no later than 2 weeks from receipt of the last material submitted by the claimant or the date of the hearing, whichever is later. $6160. Refusals to Waive Time Limitation. 1of1 6/22/2000 1 :20 PM Document Iittp://~~ww.calregs.com/cgi-bin/om~ record^ (75CB9) &softpage=Document42 Whenever a public entity rejects a request by a claimant for a waiver of the time limits provided in section 6088, a claimant may file a written request for review of this decision in accordance with the procedures set forth in sections 6 156 and 6158, except that such written request for review shall be filed within 90 days of the claimant's receipt of the public entity's determination. $6162. Extension of Time Limits. -. ." ". ... The time limits specified in Section 6 156 may be extended for good cause by the public entity. $6164. Recommendations by Third Party. Upon agreement between the claimant and the public entity, a mutually acceptable third party or parties may review the claim and make advisory recommendations thereon to the head of the public entity for its final determination. In reviewing the claim and making recommendations to the public entity, the third party or parties shall be guided by the provisions of this Article. Except to the extent the confidentiality of material is protected by law or its disclosure is prohibited by law, a public entity shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance. If a claimant is improperly denied access to any relevant material bearing on the claim, such material may not be relied upon in reviewing the initial determination. $6166. Review of Files by Claimant. I of1 6/22/2000 1 :20 PM Except to the extent the confidentiality of material is protected by law or its disclosure is prohibited by law, a public entity shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance. If a claimant is improperly denied access to any relevant material bearing on the claim, such material may not be relied upon in reviewing the initial determination. $6168. Effect of Determination on Other Persons. The principles established in all determinations by a public entity shall be considered as precedent for all eligible persons in similar situations regardless of whether or not a person has filed a written request for review. All written determinations shall be kept on file and available for public review. $6170. Right to Counsel. Any aggrieved party has a right to representation by legal or other counsel at his expense at any and all stages of the proceedings set forth in these sections. 96172. Stay of Displacement Pending Review. of 1 6/22/2000 120 PM Document http://www.calregs.com/cgi-bidom- ... record= { 75CD7) &softpage=Document42 If a complainant seeks to prevent displacement, the public entity shall not require the complainant to move until at least 20 days after it has made a determination and the complainant has had an opportunity to seek judicial review. In all cases the public entity shall notifjr the complainant in writing 20 days prior to the proposed new date of displacement. $6174. Joint Complainants. Where more than one person is aggrieved by the failure of the public entity to refer them to comparable permanent or adequate temporary replacement housing the complainants may join in filing a single written request for review. A determination shall be made by the public entity for each of the complainants. $6176. Judicial Review. Nothing in this Article shall in any way preclude or limit a claimant from seeking judicial review of a claim upon exhaustion of such administrative remedies as are available under this Article. Article 6. Acauisition Policies $6180. Purpose. Iof1 6/22/2000 1 :20 PM Document http://www.calregs.com/cgi-bin/om_ ...recOrd={75CE6} &sofipage=Docurnent42 The purpose of this Article is to set forth the practices to be followed with respect to acquisition of real property by a public entity. Public entities shall, to the greatest extent practicable, be guided by these practices. $6182. Acquisition. (a) A public entity shall make every reasonable effort to acquire property by negotiation and to do so expeditiously. (b) Before negotiations are initiated (see subsection 600S(n)) a public entity shall: (1) Have the property appraised, giving the owner or his representative designated in writing an opportunity, by reasonable advance written notice, to accompany the appraiser during the inspection of the property; (2) If the owner of real property is also the owner of a business conducted on the real property to be acquired or on the remainder, inform him of his possible right to compensation for loss of goodwill. The public entity should include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure Sections 1230.010 et seq.). (3) Establish an amount it believes to be just compensation for the property, which amount shall, in no event, be less than the public entity's approved appraisal of the fair market value of the property as improved. (c) The determination of just compensation shall be based upon consideration of: (1) The real property being acquired; 1 of1 6/22/2000 1 :2 1 PM Document http:!iwww.calregs.com/cgi-bin/om_ ... record=~75CFj} &softpage=Document42 (2) Where the real property acquired is part of a larger parcel, the injury, if any, to the remainder; and (3) Loss of goodwill, where the owner of the real property is also the owner of a business conducted upon the property to be acquired or on the remainder and where the provisions of the Eminent Domain Law pertaining to compensation for loss of goodwill are satisfied. Goodwill consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage. (d) As soon as possible after the amount of just compensation is established, the public entity shall offer to acquire the property for the full amount so established and shall provide the owner with a written statement of the basis for determination of just compensation. The statement shall include the following: (1) A general statement of the public use for which the property is to be acquired. (2) A description of the location and extent of the property to be taken, with sufficient detail for reasonable identification, and the interest to be acquired. (3) An inventory identifying the buildings, structures, fixtures, and other improvements. (4) A recital of the amount of the offer and a statement that such amount: (A) Is the full amount believed by the public entity to be just compensation for the property taken; (B) Is not less than the approved appraisal of the fair market value of the property as improved; (C) Disregards any decrease or increase in the fair market value of the real property to be acquired prior to the date of valuation caused by the public improvement for which the property is to be acquired for such public improvement, other than that due to physical deterioration within the reasonable control of the owner or occupant; and (D) Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits which the owner is entitled to receive under an agreement with the public entity, except for an amount to compensate the owner for that portion of loss of goodwill provided in accordance with Section 6100. (5) If the real property is a portion of a larger parcel, the statement shall include an apportionment of the total estimated just compensation for the partial acquisition between the value of the property being taken and the amount of damage, if any, to the remainder of the larger parcel from which such property is taken. (6) If the owner of the real property to be acquired is also the owner of a business conducted upon the property or the remainder, the statement shall include an indication of the amount of compensation for loss of goodwill. (e) At the initiation of negotiations (see subsection 6008(n)) a public entity shall provide written notification to the owner of a business conducted on the real property to be acquired or on the remainder, who is not also the owner of the real property, concerning his possible right to compensation for loss of goodwill. The public entity should include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure, Section 1230.010 et seq.). (f) (1) If after receiving the public entity's offer the owner requests additional information regarding the determination of just compensation, the public entity shall provide the following information to the extent that the determination of just compensation is based thereon: 6/22/2000 1:21 PM Document http://www.calregs.com/cgi-bin/om- ... record={ 75DO-l) &softpage=Document42 (A) The date of valuation used. (B) The highest and best use of the property. (C) The applicable zoning. (D) Identification of some of the sales, contracts to sell and purchase, and leases supporting the determination of value. (E) If the property is a portion of a larger parcel, a description of the larger parcel, with sufficient detail for reasonable identification. (2) With respect to each sale, contract, or lease provided in accordance with (l)(D) above, the following data should be provided: (A) The names and business or residence addresses, if known, of the parties to the transaction. (B) The location of the property subject to the transaction. (C) The date of transaction. (D) The price and other significant terms and circumstances of the transaction, if known. In lieu of stating the other terms and circumstances, the public entity may, if the document is available for inspection, state the place where and the times when it is available for inspection. (3) The requirements of this subsection do not apply to requests made after an eminent domain proceeding is commenced. (g) Whenever a part of a parcel of property is to be acquired by a public entity for public use and the remainder, or a portion of the remainder, will be left in such size, shape or condition as to constitute an uneconomic remnant the public entity shall offer to acquire the remnant if the owner so desires. For the purposes of these Guidelines an “uneconomic remnant” shall be a parcel of real property in which the owner retains an interest after partial acquisition of his property and which has little or no utility or value to such owner. (Nothing in this subsection is intended to limit a public entity’s authority to acquire real property.) (h) Nothing in this section shall be construed to deprive a tenant of the right to obtain payment for his property interest as otherwise provided by law. (i) (1) Prior to commencement of an eminent domain proceeding the public entity shall make reasonable efforts to discuss with the owner its offer to purchase the owner’s real property. The owner shall be given a reasonable opportunity to present material which he believes to be relevant as to the question of value and to suggest modification in the proposed terms and conditions of the purchase, and the public entity shall carefully consider the owner’s presentation. (2) Prior to commencement of an eminent domain proceeding, if the evidence presented by an owner or a material change in the character or condition of the property indicates the need for a new appraisal or if a significant delay has occurred since the determination of just compensation, the public entity shall have its appraisal updated. If a modification in the public entity’s determination of just compensation is warranted, an appropriate price adjustment shall be made and the new amount determined to be just compensation shall be promptly offered in writing to the owner. 1of1 6/22/2000 1:21 PM Document littp://www.calregs.com/cgi-bin/om~ ...reCord=(75D 13 }&softpage=Document42 ('j) (1) In no event shall the public entity either advance the time of condemnation, or defer negotiations or condemnation on the deposit of funds in court for the use of the owner, or take any other action coercive or misleading in nature, in order to compel or induce an agreement on the price to be paid for the property. (2) If any interest in property is to be acquired by exercise of the power of eminent domain, the public entity shall promptly institute formal condemnation proceedings. No public entity shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of this real property. tj6184. Notice of Decision to Appraise. The public entity shall provide the owner with written notice of its decision to appraise the real property as soon as possible after the decision to appraise has been reached. The notice shall state, as a minimum, that: (a) A specific area is being considered for a particular public use; (b) The owner's property has been determined to be located within the area; and (c) The owner's property, which shall be generally described, may be acquired in connection with the public use. 56186. Time of Offer. The public entity shall make its first written offer as soon as practicable following service of the Notice of Decision to Appraise. (See section 61 84.) 1of1 6/22/2000 1:21 PM Document http://www.calregs.com/cgi-bin/om-. ..record=~75D22)&sofpage=Document~2 $6188. Notice of Land Acquisition Procedures. (a) At the time the public entity notifies an owner of its decision to appraise real property it shall furnish the owner a written explanation of its land acquisition procedures, describing in non-technical, understandable terms the public entity's acquisition procedures and the principal rights and options available to the owner. (b) The notice shall include the following: (1) A description of the basic objective of the public entity's land acquisition program and a reference to the availability of the public entity's statement covering relocation benefits for which an owner-occupant may be eligible; (2) A statement that the owner or his representative designated in writing shall be given the opportunity to accompany each appraiser during his inspection of the property. (3) A statement that if the acquisition of any part of real property would leave the owner with an uneconomic remnant as defined in subsection 6 182(g) the public entity will offer to acquire the uneconomic remnant; if the owner so desires; (4) A statement that if the owner is not satisfied with the public entity's offer of just compensation he will be given a reasonable opportunity to present relevant material, which the public entity will carefully consider, and that if a voluntary agreement cannot be reached the public entity, as soon as possible, will either institute a formal condemnation proceeding against the property or abandon its intention to acquire the property, giving notice of the latter as provided in section 6 190. (5) A statement that construction or development of a project shall be so scheduled that no person lawfully occupying real property shall be required to move from a dwelling (assuming a replacement dwelling as required by these Guidelines will be available) or to move his business or farm operation without at least 90 days written notice from the public entity of the date by which the move is required; and (6) A statement that, if arrangements are made to rent the property to an owner or his tenant for a short term or for a period subject to termination by the public entity on short notice, the rental will not exceed the lesser of the fair rental value of the property to short term occupier or the pro rata portion of the fair rental value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial means. (See subsection 6008(c).) $6190. Notice of Public Entity's Decision Not to Acquire. 1 of2 6/22/2000 1:21 PM Document http://www.calregs.com/cgi-bidom-, . .record= { 75 D3 1 } &softpage=Document42 Whenever a public entity which has forwarded a Notice of Decision to Appraise or has made a firm offer subsequently decides not to acquire the property, the public entity shall serve a notice in writing on the owner, all persons occupying the property and all other persons potentially eligible for relocation payments and assistance. This notice shall state that the public entity has decided not to acquire the property. It shall be served not later than 10 days following the date of the public entity decision not to acquire. 56192. Incidental Expenses. . . ... ... . . . . . ..... . .. .... ...... ........... . . . ... " ____.. ... . .. If the real property is acquired by purchase, the public entity shall pay all reasonable expenses incident to transfer. Among the expenses requiring payment are: recording fees, transfer fees and similar expenses incident to the conveyance of real property, and the pro rata portion of charges for public service such as water, sewage and trash collection which are allowable to a period subsequent to the date of transfer of title to the public entity or the effective date of possession of such property by the public entity, whichever is earlier. The public entity shall inform the owner that he may apply for a rebate of the pro rata portion of any real property taxes paid. 1-1 I si-(1 r< Y 1. Amendment filed 11-5-76 as an emergency; designated effective 11-27-76 (Register 76, No. 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 44). $6194. Short Term Rental. 1 of1 6/22/2000 1:21 PM Document http://www.calregs.com/cgi-bidom-...record={ 75D40 1 &soflpage=Document42 (a) If the public permits an owner or tenant to occupy the real property acquired on a rental basis for a short-term or for a period subject to termination by the public entity on short notice, the amount of rent required shall not exceed the lesser of the fair rental value to a short-term occupier or the pro rata portion of the fair rental value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial means. (See subsection GOOS(c).) (b) A post-acquisition tenant who occupies real property acquired on a rental basis for a short term and who is informed that the property has been acquired for a public use shall be given not less than 30 days notice of termination of the tenancy. HI STORY 1. Amendment of subsection (b) filed 1 1-5-76 as an emergency; designated effective 1 1 i27-76 (Register 76, No. 44). 2. Certificate of Compliance filed 2-16-77 (Register 77, No. 8). 86195. Public Information. The purchase price and other consideration paid by the public entity is public information and shall be made available upon request. 86196. Service of Notice. Iofl 6/22/2000 1:21 PM Document http://www.calregs.com/cgi-bidom- ... record={ 75D4F} &softpage=Document42 Service of all notices required by this article shall be made either by first class mail or by personal service upon the person to be notified. 86198. Nonpossessory Interest Exception. The provisions of 6182(b), (c), (d)(4), and (f) and 61 88 shall not apply to the acquisition of any easement, right-of-way, covenant or other nonpossessory interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair or replacement of sub-surface sewers, waterlines or appurtenance, drains, septic tanks, or storm water drains. Attachment A Minimum Contents of Informational Statement(s) For Distribution TO Business Displaced Concerns Item To Be Included Persons and Others I. General description of the nature and types of activities that will be undertaken, including an identification of areas which may involve displacem should be attached. x Y 2. Statement that public action may result in displacement but that no one lawfully occupying property will be required to surrender possession with entity and no one will be required to move until 90 days after the provision of information. out at least 90 days' written notice from the public x X 3. Assurance that families and individuals will not be required to move before reasonable offers of decent, safe, sanitary and otherwise comparable h made, except for the causa set forth in the local agency's eviction policy (which shall be in accordance with section 6058.) x For Distribution TO Business Displaced Concerns Item To Be Included Persons and Ofhers 4. General description of types of relocation payments available, including general eligibility criteria and a caution against premature moves that mig X X 5. Identification of the agency's relocation program and a description of the relocation services and aids that will be available. x X 6. Encouragement to visit the agency's relocation office and cooperate with the staff. The address, telephone number, and hours of the relocation offi 1 of2 7. Information on replacement housing, including: 6/22/2000 1 :22 PM Document http://www.calregs.com/cgi-bidom-.. .record={ 75 D4F) &softpage=Document42 a. Brief description of what constitutes comparable replacement housing, including physical standards. x b. Laymen's description of Federal fair housing law (Title VI11 ofcivil Rights Act of 1968), and applicable State and local fair housing laws, Actof1964. x c. Statement that the public entity (or its agent) will identify comparable replacement dwellings within the financial means of and otherwise a assistance to persons in obtaining housino, of their choice, including assistance in the referral of complaints of discrimination to the appropriate Feder agency. x d. Statement that persons may seek their own housing accommodations and urging them, if they do so, to notify the relocation office prior to property. X 8. Statement that the public entity will provide maxi governmental agencies which might be of assistance. mum assistance in locating relocation accommodations,including consultation with the S x 9. Statement describing requirement for prior notification to the agency of the business concern's intention to move. x IO. Summary ofthe local agency's eviction policy, which shall be in accordance with the provisions of section 6058. x X 11. Statement describing the agency's grievance procedure, its purpose, and how it may be used, which procedure shall be in accordance with the pro SubchaDter 2. California Low-Income Home Management Training Promam NOTE Authority cited: Sections 41226 and 50626, Health and Safety Code. Reference: Sections 41220-41229 and 50625-50629, Health and Safety Code. HISTORY 1. Renumbering from Chapter 1, Subchapter 4 (Sections 1500-1 520, not consecutive) to Chapter 6, Subchapter 2 (Sections 6200-6220, not consecutive) filed 1-28-77 as procedural and organizational; effective upon filing (Register 77, No. 5). For prior history, see Register 76, No. rn 2 of2 6/22/2000 1 :22 PM An Analysis of the Preliminary Plan The Preliminary Plan for the Project (“Preliminary Plan”) was approved by the Carlsbad Planning Commission (“Planning Commission”) on October 6, 1999. The Preliminary Plan described the boundaries of the Project Area and included general statements of the proposed land uses, layout of principal streets, population densities, building intensities, and building standards. It also addressed how the Plan would attain the purposes of the Redevelopment Law. It discussed the conformance with the General Plan and discussed the impact of the Project upon residents and the surrounding neighborhood. The Plan conforms with the standards and provisions of the Preliminary Plan, as detailed below: Project Area Location and Description: This section of the Preliminary Plan describes the boundaries of the Project Area. The proposed boundaries are identical to those described in the Preliminary Plan, with the exception of the Lanakai mobilehome park, which was removed by the Commission afier the Preliminary Plan was prepared. General Statement of Proposed Planning Elements: This section of the Preliminary Plan states that Project Area land uses, proposed layouts of principal streets, proposed population densities, proposed building intensities, and proposed building standards shall be subject to and controlled by the General Plan, Zoning Ordinance, and other local codes, as amended from time to time. These planning elements have been incorporated into the Plan. Additionally, the Plan does not propose any changes to population or development densities or land use designations. Attainment of the Purposes of the Redevelopment Law: This section of the Preliminary Plan generally sets forth the objectives of the Project Area. To this end, the Plan contains a detailed list of redevelopment goals that permit the Commission to complete its redevelopment program to eliminate persisting blighting conditions in the Project Area in accordance with the Redevelopment Law. Conformance to the General Plan: Both the Preliminary Plan and Plan conform to the standards, policies and provisions of the General Plan, as they exist or are hereafter amended. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - G-I - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT General Impact of the Proposed Proiect Upon the Residents of the Proiect Area and Surrounding Neighborhoods: This section of the Preliminary Plan states that residents in and around the Project Area will benefit from improved traffic circulation, public facilities and services, environmental quality, employment opportunity and economic development activity effectuated by implementation of the Plan. Other impacts associated with the implementation of the Plan have been assessed and analyzed in the Environmental Impact Report on the Plan, included in Section K of this Report, and the Neighborhood Impact Report, incorporated in Section M of this Report. The Plan provides the Commission with the redevelopment tools and policies necessary to achieve positive impacts and mitigate negative impacts. ROSENOW SPEVACEK GROUP, INC. CARLSEAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - G-2 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT The Report and Recommendations of the Planning Commission The Planning Commission adopted its report on the draft Plan on June 7, 2000, a copy of which follows this page. The Planning Commission resolution included a recommendation that the City Council adopt the Plan. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - H-1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT 1 L I t s 1C 11 12 1: 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PLANNING COMMISSION RESOLUTION NO. 4786 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING CERTIFICATION OF A FINAL ENVIRONMENTAL IMP-ACT REPORT, EIR 99-01 FOR THE SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT ON PROPERTY GENERALLY LOCXTED ALONG PORTIONS OF CARLSBAD BOLIEVARD, PONTO ROAD, AND CANNON ROAD, INCLUDING THE ENCINA POWER GENERATING PLANT, SAN DIEGO GAS AND ELECTRIC RIGHT-OF-WAY, OTHER PUBLIC RIGHTS-OF-WAY, AND VARIOUS INDUSTRIAL, SERVICE AND RESIDENTIAL PROPERTIES IN THE PONTO DRIVE AREA IN LOCAL FACILITIES MANAGEMENT ZONES 3,9,13 AND 22. CASE NAME: SOUTH CARLSBAD COASTAL REDEVEL- OPMENT PROJECT CASE NO: EIR 99-01 WHEREAS, the Housing and Redevelopment Commission (“Commission”) and the City Council of the City of Carlsbad (“City Council”) are preparing and considering the adoption of a Redevelopment Plan for the South Carlsbad Redevelopment Project (“Plan”); and WHEREAS, the Planning Commission did adopt Resolution No. 4656 on October 6, 1999, approving a Preliminary Plan for the South Carlsbad Coastal Redevelopment Project; and WHEREAS, the adoption of the Redevelopment Plan constitutes a project requiring environmental review under the California Environmental Quality Act (CEQA); and WHEREAS, CEQA requires that an Environmental Impact’ Report (EIR) be prepared when a project has the potential to create significant environmental impacts; and WHEREAS, the Redevelopment Plan does not propose any specific projects at this time nor does it propose to change any of the existing land use policies, standards and regulations, it was determined to prepare a Program EIR to discuss indirect environmental impacts associated with adoption of the Plan; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHIREAS, the Planning Commission did, on the 7th day of June, 2000, hold a duly noticed public hearing as prescribed by law to consider said Plan and associated EIR; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said Cornmission considered all factors relating to the Plan and the EIR; and NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planninz Commission of the City of Carlsbad as follows: A. B. C. D. Findinm: That the foregoing recitations are true and correct. That the Final Program Environmental Impact Report consists of the Draft Environmental Impact Report, EIR 99-01, dated February, 2000, appendices, all written comments and all responses to comments-contained in the Response to Comments dated May, 2000, as amended to include the comments and documents of those testifying at the public hearings and responses thereto hereby found to be in good faith and reason by incorporating a copy of the minutes of said public hearings into the report, all on file in the Planning Department incorporated by this reference, and collectively referred to as the “Report”. That the Program Environmental Impact Report EIR 99-01, as so amended and evaluated, is recommended for acceptance and certification as the Final Environmental Impact Report and that the Final Environmental Impact Report as recommended is adequate and provides reasonable information on the project and all reasonable and feasible alternatives thereto, including no project. That based on the evidence presented at the public hearing, the Commission RECOMMENDS CERTIFICATION of Program Environmental Impact Report, SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT, EIR 99-01; RECOMMENDS APPROVAL of the Candidate Findings of Fact (‘CCEQA Findings”), attached hereto marked Exhibit “B” and incorporated by this reference; RECOMMENDS APPROVAL of the Statement of Overriding Considerations (“Statement”), attached hereto marked Exhibit “B” and incorporated by this reference; and RECOMMENDS APPROVAL of the Mitigation Monitoring and Reporting Program as amended (“Program”), attached hereto marked Exhibit “C” and incorporated by this reference; based on the following findings and subject to the following conditions. 1. The Planning Commission does hereby find that the Final Program EIR 99-01, the Candidate Findings of Fact, the Mitigation Monitoring and Reporting Program, and the PC RES0 NO. 4786 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 -. 3. 4. 5. 6. 7. 8. 9. 10. Statement of Ovemding Considerations have been prepared in accordance with requirements of the California Environmental Quality Act, the State EIR Guidelines, and the Environmental Review Procedures of the City of Carlsbad. The Planning Commission of the City of Carlsbad has reviewed, analyzed and considered Final EIR 99-01, the .environmental impacts therein identified for this project; the Candidate Findings of Fact (“Findings” or “CEQA Findings”) and the Statement of Ovemding Considerations attached hereto as Exhibit “B”, the Mitigation Monitoring and Reporting Program (“Program”) attached hereto as Exhibit “C” prior to RECOMMENDING APPROVAL, of this project. The Planning Commission finds that Final EIR 99-01 reflects the independent judgment of the City of Carlsbad Planning Commission. The Planning Commission does hereby RECOMMEND APPROVAL, accept as its own, incorporate as if set forth in fill herein, and make each and every one of the findings contained in the “Candidate Findings of Fact” (Exhibit “B”). As is more fdly identified and set forth in Final EIR 99-01 and in the Candidate Findings of Fact, the Planning Commission hereby finds pursuant to Public Resources Code Section 21081 and CEQA Guidelines Section 15091 that the mitigation measures described as feasible in the above referenced documents, are feasible, and will become binding upon the entity assigned thereby to implement same. As is also noted in the above referenced environmental documents described in the above finding number 4, each of the alternatives to the project which were identified as potentially feasible in Final EIR 99-01 are found not to be feasible since they could not meet both the objectives of the project and avoid the identified significant environmental effects through implementation of feasible mitigation measures, for the reasons set forth in said Candidate Findings of Fact. The Planning Commission hereby finds that the Redevelopment Plan is designed to ensure that during project implementation the City and any other responsible parties implement the project components and comply with the feasible mitigation measures identified in the Candidate Findings of Fact and the Program. Changes or alterations have been required in or incorporated into the project which mitigate or avoid most significant effects identified in the EIR. Even after the adoption of all feasible mitigation measures and any feasible alternatives, certain significant or potentially significant environmental effects caused by the project will remain. Therefore, the Planning Commission hereby recommends that the City Council of the City of Carlsbad issue, pursuant to Section 15093 of the CEQA Guidelines, a Statement of Overriding Considerations set forth in Exhibit “B”, which identifies the specific economic, social, and other considerations that render the unavoidable significant adverse environmental effects acceptable. The Record of Proceedings for this project consists of the following: PC RES0 NO. 4786 -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A. B. C. D. E. Condition: The Report, CEQA Findings, Statement and Program; All reports, applications, memoranda, maps, letters and other planning documents prepared by the planning consultant, the project applicant, the environmental consultant, and the City of Carlsbad that are before the decisionniakers as determined by the City Clerk; All documents submitted by members of the public and public agencies in connection with the EIR thereto on the project; Minutes of all public meetings and public hearings regarding the EIR; and Matters of common knowledge to the City of Carlsbad which they consider, including but not limited to, the Carlsbad General Plan, Carlsbad Zoning Ordinance, and Local Facilities Management Plan(s), which may be found at the office of the City Clerk located at 1200 Carlsbad Village Drive and the Planning Department, located at 1635 Faraday Avenue in the custody of the City Clerk and the Planning Director. 1. The City and all other responsible parties shall implement the mitigation measures described in Exhibit C, Mitigation Monitoring and Reporting Program for the South Carlsbad Coastal Redevelopment Project. PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, California, held on the 7th day of June, 2000 by the following vote, to wit: AYES: Chairperson Compas, Commissioners Baker, L'Heureux, Nielsen, Segall, and Trigas * NOES: ABSENT: Commissioners Heineman ABSTAIN: CARLSBAD PLANNING COMMISSION ATTEST: MICHAEL J. HOE~MILYER Planning Director PC RES0 NO. 4786 -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PLANNING COMMISSION RESOLUTION NO. 4787 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A PLAKXNG COMMISSION DETERMINATION OF REDEVELOPMENT PLAN CONSISTENCY WITH THE GENERAL PLAN ON PROPERTY GENERALLY LOCATED ALONG PORTIONS OF CARLSBAD BOULEVARD, POhTO ROAD, AND CANNON ROAD, INCLUDING THE ENCINA POWER GENERATING PLANT, SAN DIEGO GAS AND WAY, AND VARIOUS INDUSTRIAL, SERVICE AND RESIDENTIAL PROPERTIES IN THE PONTO DRIVE AREA IN LOCAL FACILITIES MANAGEMENT ZONES 3,9, 13 AND 22. CASE NAME: ELECTRIC RIGHT-OF-WAY, OTHER PUBLIC RIGHTS-OF- SOUTH CARLSBAD COASTAL REDEVEL- OPMENT PROJECT CASE NO: PCD/GPC 00-02 WHEREAS, the Housing and Redevelopment Commission (“Commission”) and the City Council of the City of Carlsbad (“City Council”) are preparing and considering the adoption of a Redevelopment Plan for the South Carlsbad Redevelopment Project (“Plan”); and WHEREAS, the Planning Commission did adopt Resolution No. 4656 on October 6, 1999, approving a Preliminary Plan for the South Carlsbad Coastal Redevelopment Project; and WHEREAS, Section 33346 of the California Community Redevelopment Law (“Law”) provides that before the proposed Plan is submitted to the City Council for consideration, it shall be first submitted to the Planning Commission for its report and recommendation concerning the Plan and its conformity to the City’s General Plan; and WHEREAS, Section 65402 of the Government Code provides in part: (a> “If a general plan or part thereof has been adopted, no real property shall be acquired by dedication or otherwise for street, square, park, or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building shall be constructed or authorized, if the adopted general plan or part thereof applies thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or 1 - 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 structure have been submitted to and reported upon by the planning agency as to conformity with said adopted general plan or part thereof....”; and A local agency shall not acquire real property for any of the purposes specified in paragraph (a) nor dispose of any real property, nor construct or authorize a public building or structure, in any county or city, if such county or city has adopted a general plan or part thereof is applicable thereto, until the location, purpose and extent of such acquisition, disposition, or such public building or structure have been submitted to and reported upon by the planning agency having jurisdiction, as to conformity with said adopted general plan or part thereof...”; and (b) WHEREAS, the Planning Commission has received and reviewed the Plan in the form on file in the Planning Department and incorporated by this reference as Exhibit “A”; and WHEREAS, the proposed boundaries of the Project Area (“Project Area”) incorporate territories within the jurisdiction of the City of Carlsbad General Plan; and WHEREAS, the Plan proposes land use controls, permitted uses, public uses, interim uses, and general land use controls and limitations, in a manner consistent with applicable City General Plan policies as follows: 1. Section 518 of the Plan provides that public improvements to be undertaken by the Commission are identified in the General Plan and capital improvement programs, and incorporates said documents by reference; and Section 527 of the Plan provides that all development, whether public or private, must conform to the Plan and all applicable federal, State, and local laws, including without limitation the General Plan, zoning ordinance, and all other State and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and 3. Section 528 of the Plan provides that all real property sold, leased or conveyed by the Commission, as well as property subject to Owner Participation Agreements between the Commission and property owners, shall be made subject to the provisions of the General Plan, zoning ordinance, and all other State and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and Section 601 of the Plan provides that the land uses permitted by the Plan shall be those permitted by the General Plan, zoning ordinance, and all other State and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and 5. Section 603 of the Plan provides that the street system in the Project Area shall be developed in accordance with the General Plan, zoning ordinance, and all other State and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and Section 606 of the Plan provides that any interim uses shall conform to the General Plan, zoning ordinance, and all other State and local building codes, guidelines or specific plans as they now exist or are hereafter amended; and, 2. 4. 6. PC RES0 NO. 4787 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7. Section 607 of the Plan provides that no real property shall be developed, redeveloped, rehabilitated, or otherwise changed after the date of the adoption of the Plan except in conformance with the goals and provisions of this Plan and the regulations and requirements of the General Plan, zoning ordinance, and all other State and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and Section 607 of the Plan also provides that the type, size, height, number, and use of buildings in the Project Area will be controlled by the General Plan, zoning ordinance, and all other State and local building codes, guidelines, or specific plans as they now exist or are hereafter amended; and Section 610 of the Plan provides that the number of dwelling units in the Project Area shall be regulated by the General Plan; and Section 611 of the Plan provides that the amount of open space in the Project Area is to be the areas so designated by the General Plan, zoning ordinance, and all other state and local building codes, guidelines, or specific plans as they now exist or are hereafter amended. 8. 9. 10. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Carlsbad as follows: A. B. C. D. E. ... That the foregoing recitations are true and correct. The Planning Commission hereby reports, finds, and determines that the Redevelopment Plan for the South Carlsbad Coastal Redevelopment Project conforms to the City of Carlsbad General Plan. The Planning Commission hereby recommends that the City Council and Commission adopt the Redevelopment Plan for the South Carlsbad Coastal Redevelopment Project. The Planning Commission hereby FINDS and DETERMINES, pursuant to Section 65402 of the Government Code, that the location, purpose, and extent of any acquisition or disposition of real property for street, square, park, or other public purpose, or construction or authorization of a public building or structure by the Commission for the purpose of carrying out the Redevelopment Plan conforms to the General Plan of the City. The Planning Commission hereby authorizes and directs the officers, employees, staff, consultants, and attorneys for the Planning Commission to take any and all actions that may be necessary to effectuate the purposes of this Resolution or which are appropriate or desirable in the circumstances. In the event that prior to the adoption of the Plan, the Commission or City Council desire to make any minor, technical, or clarifying changes to the Plan, the Planning Commission hereby finds and determines that any such minor, technical, or clarifying changes need not be referred to it for further report and recommendation. PC RES0 NO. 4787 -3- 1 c 1 rl d 4 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 This Resolution shall constitute the report and recommendation of the Planning Commission on the Redevelopment Plan .o the Commission and City Council pursuant to Section 33346 of the Law. PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, California, held on the 7th day of June, 2000 by the following vote, to wit: AYES: Chairperson Compas, Commissioners Baker, Heineman, L’Heureux, Nielsen, Segall, and Trigas NOES: ABSENT: ABSTAIN: CARLSBAD PLANNING COMMISSION ATTEST: Planning Director PC RES0 NO. 4787 -4- Report and Recommendation of the Project Area Committee The Project Area does not include a substantial number of affordable units that could be subject to acquisition by eminent domain (there are approximately 9 residential units in the Project Area), and the Plan does not propose projects that could eliminate any affordable residential units. Therefore, no project area committee was formed. As a result, there is no report or recommendation from the project area committee. However, the Commission did make efforts to involve Project Area residents, businesses, and property owners in the Plan adoption process. These efforts included approximately 9 face-to-face meetings between CommissiotVCrty staff and Cabrillo Power, the largest property owner in the Project Area. In addition, Commission staff met with several other property owners and residents regarding their concerns over the proposed Plan. On June 1,2000, staff and RSG hosted a noticed community workshop to present the proposed Plan and discuss issues. The June 1 workshop was attended by approximately 50 persons, including both Project Area and non-Project Area residents and property owners. Those persons interested were offered the opportunity to obtain copies of pertinent documents. Finally, all meetings associated with the Plan adoption effort thus far, including 2 planning commission meetings, 4 City CounciVCommission meetings, and the duly-noticed joint public hearing held by the City Council and Commission were open and available to the public. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - I 1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT A Statement of Confionnance to the General Plan On June 7, 2000, the Planning Commission adopted a Resolution determining that the draft Plan and implementation activities described therein are in conformity with the General Plan of the City, pursuant to Government Code Section 65402. A copy of the Planning Commission resolution is included in Section H of this Report. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CIN COUNCIL JUNE 27.2000 - J 1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT The Emrironmental Impact Report A program environmental impact report (“EIRn) for the Plan (State Clearinghouse No. 99101106) was prepared by Culbertson, Adams, and Associates. The EIR reviewed all potential environmental impacts associated with the implementation of the Plan. Topics addressed in the EIR included: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Geology/Soils, HydrologyNVater Quality, Land Use/Planning, Noise, TransportatiodTrafic, Public ServiceslUtiIitieslService Systems, Hazards and Hazardous Materials, Population and Housing, and Recreation. Additionally, the EIR addressed all other sections as required by the California Environmental Quality Act (CEQA). In general, the EIR concluded that because of consistency with the City’s General Plan, adoption of the Plan would not result in any significant environmental impacts. The Plan may indirectly encourage and potentially expedite development in the Project Area, however, the resulting development and impacts are not anticipated to be beyond policy as set forth in the General Plan. The EIR identified no significant impacts with regard to: Land Use/Planning, Geology/Soils, Transportation/Traffic, Public Services/Utilities/Service Systems, Hazards and Hazardous Materials, Population and Housing, or Recreation. The document also added that implementation of recommendation measures, including those provided by existing General Plan policies, would not result in any significant unmitigated Project impacts with respect to: HydrologyNVater Quality, Aesthetics, Biological Resources, or Cultural Resources. Even with incorporated mitigation measures, the EIR determined that there would be indirect, significant impacts to Air Quality associated with adoption and implementation of the Plan. This is because San Diego ‘County is already in a non-attainment condition for ozone; any project which even directly facilitates development has a non-mitigable, significant impact on Air Quality. A copy of the EIR is included under separate cover and incorporated herein by reference. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CIN COUNCIL JUNE 27.2000 - K 1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Report of the County Fiscal Officer A January 2000 report of the County fiscal officer was prepared in accordance with Section 33328 of the Redevelopment Law, using the 1999-00 equalized roll as the "base year" assessment roll for the purposes of calculating tax increment. In addition, the State Board of Equalization prepared a similar report for state- assessed nonunitary assessed values in the Project Area for 1999-00. Together, the County and State Board of Equalization report that the total Project Area secured, unsecured, and state-assessed value in 1999-00 is $305,431,594. Copies of the 1999-00 base year values reported by the County Auditor- Controller and State Board of Equalization follow this page. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE ClTl COUNCIL JUNE 27,2000 - L 1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT January fO,ZCGO .- Dear h+r. Gceys. ?muan: to Sediori 33323 3t seq. of the Heid&+ and Safety Ccde, the 1989/2@GO assessed -~alues cf railroads and the non-operativg, non uritaci assessed values c;f stats-assessea Frgperbj locate? within the boucdzries of the prcposed South Carlsbad :casta! Rzdeveizprnen? Project are enclosed. 3ese ~alues Vpdf continGe IC be valid if the prcjed.; Scwdaks rmain fixed. The -,;dimnce 3dOpting and appraving tie redeveiopment plan for th;s project become? +%ztive prbr to August 23. 2CCrO. i ,I .; km~ have any qt?sstiorts rer;ardins this marter, plezse contad me ai; (916j 322-71E.. SincerelG, Tax Arez Sewices Ss5ion Assessed Values 199912000 Roll- CcmpanY - Land lmprovements Persorial 264.225 $219,31? SC'!4,47C $20,707,?2$ $219,371 S$14,47C /- .. -: ,I,- CARLSBAD REDEVELOPMENT AGENCY BASE YEAR ASSESSMENT ROLL REPORT PER HEALTH AND SAFETY CODE 33328 SOUTH 'CARLSBAD COASTAL PROJECT REVISED JANUARY 2000 TABLE OF CONTENTS r ' I. SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT BASE YEAR ASSESSMENT ROLL REPORT PER HEALTH AND SAFETY CODE 33328 TABLE OF CONTENTS TABLE I -PER H. S. CODE SECTION 33328, (a). THE TOTAL ASSESSED VALUATION OF ALL TAXABLE PROPERTY WITHIN THE PROJECT AREA AS SHOWN ON, THE BASE YEAR ASSESSMENT ROLL. '. TABLE 11-V * -PER H. S. CODE SECTION 33328, (b), (c), (d). THE IDENTIFICATION OF EACH TAXING AGENCY LEVYING TAXES IN THE PROJECT AREA. THE AMOUNT OF TAX REVENUE TO BE DERIVED BY EACH TAXING AGENCY FROM THE BASE YEAR ASSESSMENT ROLL FROM THE PROJECT AREA, INCLUDING STATE SUBVENTION FOR HOMEOWNERS. FOR EACH TAXING AGENCY, ITS TOTAL DEBT SERVICE TAX REVENUE FROM ALL PROPERTY WITHIN ITS BOUNDARIES, WHETHER INSIDE OR OUTSIDE THE PROJECT AREA. TABLE VI -PER H. S. CODE SECTION 33328, (e). THE ESTIMATED PROJECT 1 % TAX INCREMENT AVAILABLE TO THE REDEVELOPMENT AGENCY, BROKEN DOWN BY TAXING AGENCIES. TABLE Vi1 -PER H. S. CODE SECTION 33328, (e). THE ESTIMATED PROJECT DEBT SERVICE TAX INCREMENT AVAILABLE TO THE REDEVELOPMENT AGENCY, BROKEN DOWN BY TAXING AGENCIES. 1 2 3-6 7 (A-D) -- 8 (A - D) Revenue determined using most recent data available. SECURED STATE TOTAL SECURED UNSECURED GRANDTOTAL TABLE I (REVISED JANUARY 2000) CARLSBAD REDEVELOPMENT PROJECT 1999-2000 BASE ASSESSED VALUE HEALTH & SAFETY CODE SECTION 33328, (a). $284,346,816 $21.040.967 8305.387.783 $48,811 ** $305.436.594 (*) ASSESSED VALUES PROVIDED IN THIS REPORT ARE ESTIMATES BASED ON AN ONGOING STATE MANDATED PROCESS. THESE ASSESSED VALUES MAY CHANGE SIGNIFICANTLY UPON COMPLETION OF THAT PROCESS. (**I ESTIMATE PER COUNTY ASSESSOR TABLE I1 (REVISED JANUARY 2000) CARLSBAD REDEVELOPMENT PROJECT SECURED & UNSECURED 1% TAX REVENUE COUNTY GENERAL FUND GREATER SD CO. RES. CONSERV. CARLSBAD UNIFIED SCHOOLS MlRA COSTA COMMUNITY COLLEGE COUNTY SCHOOLS EDUC REV AUGMENTATION FUND CARLSBAD CITY TRI CITY HOSPITAL LEUCADIA COUNTY WATER DlST MUNICIPAL WATER DISTRICT COUNTY WATER AUTHORITY (CWA) $481 ,I 64 $2 $1,042,045 $286,268 $86,286 $457,165 $588,355 $60,450 $41 3 $42,385 $9,346 $75 $0 $163 $45 $13 $76 $92 $9 $7 $7 $1 $241,869,230 $116,281 $23,693,787 $29,697,195 $33,132,489 $236,009,302 $12,501,222 $3,330,490 $554,544 $1,064,604 $234,032 HEALTH & SAFETY CODE SECTION 33328, (b), (c), (d). TABLE 111 (REVISED JANUARY 2000) 74,820 45,808 27,180 3,054 1 SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT SECURED DEBT SERVICE TAX REVENUE 6,257,338,429 1,533,048 6,257,338,429 938,601 149,851,932,968 13,596,913 149,850,891,583 1,498,508 CARLSBAD UNIFIED LEASE-1988 CARLSBAD UNIFIED LEASE METROPOLITAN WATER DISTRICT COUNTY WATER AUTHORITY TABLE 1V (REVISED JANUARY 2000) SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT UNSECURED DEBT SERVICE TAX REVENUE CARLSBAD UNIFIED LEASE-1988 CARLSBAD UNIFIED LEASE VISTA PROJECT 19/85702 LEUCADIA COUNTY WATER METROPOLITAN WATER DISTRICT COUNTY WATER AUTHORITY 12 7 0 1 4 1 41 6,201,963 101,969 41 6,201,963 62,430 1,087,374,912 1,522 62.41 5,327 855 7,796,673,514 700,827 7,796,586,653 83,424 TABLE V (REVISED JANUARY 2000) SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT SECURED & UNSECURED DEBT SERVICE TAX REVENUE CARLSBAD UNIFIED LEASE-I 988 CARLSBAD UNIFIED LEASE VETA PROJECT 19/85702 LEUCADIA COUNTY WATER METROPOLITAN WATER DISTRICT COUNTY WATER AUTHORITY 74,820 45,808 0 0 27,180 3,054 12 7 0 1 4 1 7,635.01 7 1,001,031 1,522 855 14,297,740 1,581,932 c h 0 0 0 e4 W v, > Lu CL: - Y I k 2 0 v) s 0 0 cu > a a 3 z a 7 n W u, - > w CK Y I- o W ;s a a L -JI- 0 aw I I- 3 0 a z m z E Y n v, W 0 u I- d [r El a 0 0 0 nl > E a 3 z a i n W v, - > W E Y I- o W 2 CE n JI- cv, aw I. V I I- 3 0 v, 0 0 0 cu Y 0 c I- o w U a 2 52 I-I- h 0 0 0 cv >. oc 3 z 7 cl W v, w U a a 5 Y v) I t- 3 0 r I- o w 7 0 cc a 5 0 0 I: I- - 2 0 v> Nmb03Co barma rt Ob Ob Ob t'? 7'0 t r m- 0 a- m- bm om v)m N OCQOOb mo 03m mm ro L h m W Y k 0 W 5 0 0 cv i v) > iu CT Y 2 K a Jl- 0 aw I I- - -6 v) L 0 0 04 Y t- o W 7 0 a a 0 I I- - Neighborhood Impact Report Redevelopment Law requires that a Neighborhood Impact Report (“NIR”) discuss the impact the Plan will have on low and moderate income persons or families in the following areas: relocation, traffic circulation, environmental quality, availability of community facilities and services, effect on school population and quality of education, property assessments and taxes, and other matters affecting the physical and social quality of the neighborhood. Additional issues that the NIR must address include: the number of dwelling units to be removed or destroyed; the number of low or moderate income persons or families expected to be displaced; the general location of housing to be rehabilitated or constructed; the number of dwelling units planned for construction or rehabilitation to house persons and families of low or moderate income; the projected means of financing the aforementioned dwelling units; and the projected timetable for meeting the Plan’s relocation, rehabilitation, and replacement housing objectives. Implementation of the Project will have a beneficial impact on the Project Area and adjoining neighborhoods. In fact, the effort to proceed with redevelopment was initiated by Project Area property owners and businesses who were seeking a means to enact community development programs to enhance the character and quality of the City of Carlsbad. At this time, the Commission does not have any plans to relocate residents or businesses in the Project Area. If relocation activities are undertaken, the Commission will handle those activities on a case-by-case basis, in accordance with its method of relocation, as contained in Section F of this Report. As a public agency formed under the provisions of state law, the Commission is required to adhere to the State Relocation Law (Government Code Sections 7260 through 7277) and follow the California Relocation Assistance and Real Property Acquisition Guidelines (“State Guidelines”) as established in the California Code of Regulations, Title 25, Chapter 6. Prior to commencement of any acquisition activity that may cause substantial displacement of residents, the Commission will adopt a specific relocation plan in conformance with the State Guidelines. To the extent appropriate, the Commission may supplement those provisions provided in the State Guidelines to meet particular relocation needs of a specific project. Such supplemental policies, if adopted in the Commission’s sole discretion, will not involve reduction, but instead enhancement of the relocation benefits required by State Law. ROSENOW SPEVACEK GROUP, INC. JUNE 27,2000 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CIN COUNCIL - M 1 - Traffic Cimlation Transportation and circulation impacts resulting from the adoption and implementation of the Plan are discussed in Section 4.4 of the EIR. The Plan does not provide for the direct development of any private or public development projects that would generate traffic and impact existing levels of service of any roadways in the Project Area. However, the development of projects would indirectly generate traffic both during and after project construction, impacting existing levels of service on road segments and intersections that serve the Project both within and outside its boundaries. The City’s General Plan will control the land use designations and intensities of the Plan; its implementation will not create locally or cumulatively significant impacts beyond what is anticipated under the General Plan. It will also not alter or intensify the General Plan’s land uses, traffic generation, levels of service, or intersection capacities. As a result, no traffic or circulation impacts were forecast in the EIR that were not considered by the General Plan EIR. The Commission, via the Plan, will adhere to policies in the circulation element of the General Plan in lessening traffic and circulation impacts. The Plan permits the Commission to construct improvements to improve traffic circulation. In the absence of the Plan, such improvements may be delayed indefinitely because of the City’s lack of financial resources in funding the improvements. Several projects related to circulation and traffic improvements are listed in the Plan and are enumerated in Section A of this Report. These improvements include, but are not limited to modifications to roadway widths, construction of curbs, gutters, street lights, and sidewalks, and installation and improvements to water lines. These projects proposed by the Commission will improve circulation, mitigate traffic deficiencies, and provide general benefits to the Project Area consistent with the circulation element of the General Plan. Environmental Quality The EIR reviewed the impacts of the Plan, including the potential new development and public improvements that could be facilitated by the Commission. The EIR analyzed the following thirteen areas: Land Use/Planning Geology/Soils HydrologyNVater Quality TransportatiowTraffic Aesthetics Noise Air Quality ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27.2000 - M 2 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT Public Services/Utilities/Service Systems Hazards and Hazardous Materials Population and Housing Recreation Biological Resources Cultural Resources The EIR concluded that after mitigation, indirect significant impacts may occur to air quality as associated with the adoption and implementation of the Plan. This impact is due in part since San Diego County is already in a non-attainment condition for ozone; any project which even directly facilitates development has a non-mitigable, significant impact on air quality. Because the Plan does not propose uses or intensities beyond the General Plan, adherence to adopted General Plan policies will ensure that implementation of the Plan will lessen or avoid potential impacts. Where applicable, the EIR outlines mitigation measures which will be required of future development. This will assure that the quality of the environment is maintained. During implementation of the Plan, specific redevelopment proposals may warrant further specific environmental analysis as required by the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. (“CEQA”). Availability of Community Facilities and Services The EIR determined that the Plan would not have a significant impact on public facilities including fire protection, police, water, wastewater, storm drain, and solid waste services. The Plan provides that any redevelopment activity is to be subject to, and consistent with, the policies set forth in the City’s General Plan, Zoning Ordinance, and local codes and ordinances, as they now exist or are hereafter amended; the General Plan incorporates policies to mitigate impacts on public services and facilities. As outlined in Section A of this Report, implementation of the Plan and its proposed projects are expected to significantly improve the City’s existing community facilities and services. The Plan will allow the Commission to utilize tax increment revenues to provide for the upgrading of existing, and construction of new, community facilities which will be of benefit to the Project Area. EfFect on School Population and Quality of Education The Project Area is served by the Carlsbad Unified School District (IICUSD). Section 4.8.4 of the EIR describes the direct and cumulative impacts of the Plan’s implementation on area schools. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - M 3 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT According to the EIR, CUSD is currently facing overcrowded elementary, middle, and high school facilities. Implementation of the Plan could, at worst, result in further overcrowding. It is speculative to estimate or determine when and if residential development in the Ponto area may occur and the number of units that may be approved by the City. Depending upon the enrollment and capacity of the schools the impact on CUSD schools may or may not be significant. Nevertheless, since several CUSD schools sewing the Project Area are currently at or over capacity, the generation of additional students would have an impact on the facilities. The EIR indicates that development fees and/or land set-asides for schools would be sufficient to fund these facilities. Redevelopment Law also provides CUSD with statutory payments from generated tax increment, irrespective of whether CUSD suffers impacts from Plan adoption. This revenue may be used for capital and operational purposes, including school facilities. Plan implementation will not result in excess development of that allowed by the City’s General Plan. Therefore, the adoption of the Plan will not cause the Project Area to generate more students than could occur in connection with development allowed in the General Plan. The City has adopted policies in the General Plan to mitigate impads of General Plan buildout on schools; implementation of the Plan will adhere to the General Plan policies to mitigate impacts on schools. Propertylaxes and Assessments The Plan calls for various methods of financing its implementation. Because redevelopment agencies do not have the constitutional authority to impose taxes, implementation of the Plan will not cause an increase in property tax rates. Rather, the principal method of financing redevelopment will be the utilization of tax increment revenues generated by the Project Area. Tax increment financing reallocates property tax revenues generated -by increases in the assessed value of property in the Project Area. Although redevelopment of the Project Area will increase the assessed valuation, Project Area property owners will not experience increases in property taxes beyond those normally allowed by other state law and state constitutional provisions. Low and Moderate Income Housing Program A. Number of Dwelling Units Housing Low and Moderate Income Households Expected to be Destroyed or Removed by the Project At this time, the Commission does not expect that implementation of the Project would cause the removal of any Project Area housing. All residential units within the Project Area are currently located in residentially designated areas; the displacement of low or moderate-income households is not anticipated. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - M 4 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT B. Number of Persons and Families of Low and Moderate Income Expected to be Displaced by the Project As discussed above, the Commission estimates that no households of low and moderate income will be displaced by the implementation of the Plan. C. General Location of Replacement Low and Moderate Income Housing to be Rehabilitated, Developed and Constructed Because the Commission does not anticipate removing or demolishing any housing units in the Project Area, no replacement housing would be needed. D. Number of Dwelling Units Housing Persons of Low and Moderate Income Planned for Construction or Rehabilitation Other than Replacement Housing As discussed in Section E of this Report, the Project Area is projected to generate $61 million in housing fund revenues. The Commission will invest its housing fund resources into a variety of housing programs described in Section A of this Report. At this time, the Commission does not have any specific plans for construction or rehabilitation of any low and moderate income units in the Project Area. Because the majority of the Project Area is zoned for commercial uses, the majority of this housing activity is expected to occur outside the Project Area boundaries in residentially designated areas in the City. The City Council and Commission adopted resolutions on May 16, 2000, finding that the use of housing funds outside the Project Area is of benefit to the Project. E. Projected Means of Financing Rehabilitation and New Construction of Housing for Low and Moderate Income Households The Commission intends to utilize not less than 20% of its tax increment revenues to finance the rehabilitation, construction, purchase, and mortgage assistance of housing for low and moderate income households, in accordance with the provisions of the Redevelopment Law as it now exists or may hereafter be amended. The Commission will also cooperate with the City to pool funds and resources beyond the tax increment set aside funds if it is determined to be necessary by both bodies in order to improve the City's affordable housing stock. F. Projected Timetable for Meeting the Plan's Relocation, Rehabilitation and Replacement Housing Objectives Implementation of the Plan should not cause the Commission to relocate or remove and thus replace, any Project Area housing. The time frame for rehabilitating units pursuant to the Plan will be subject to the availability of housing fund revenues. Rehabilitation activities will be gradually phased over the 30-year duration of the Plan. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE Clpl COUNCIL JUNE 27,2000 - M 5 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT A Summary of the Commission's Consultations with Affected Taxing Entities and a Response to Said Entities' Concems Regarding the Plan According to the San Diego County Auditor-Controller's office, the following 10 taxing entities levy taxes within the Project Area: Carlsbad Unified Schools City of Carlsbad County Schools County Water Authority Greater San Diego County Resource Conservation Leucadia County Water District Mira Costa Community College Municipal Water District San Diego County General Fund Tri-City Hospital On November 4, 1999, these entities were mailed, via certified mail, the Statement of Preparation of the Redevelopment Plan. On February 16, 2000, the Preliminary Report and Drafi Redevelopment Plan were transmitted via certified mail to. the taxing entities. Finally, on May 17, 2000, the notice of joint public hearing was transmitted to these entities, also via certified mail. As a part of each of these three transmittals, the Commission offered to consult with the affected taxing entities pursuant to Section 33328 of Redevelopment Law. To this point, only two taxing entities have contacted the Commission regarding the proposed Plan, including representatives from Carlsbad Unified School District ("CUSD") and Mira Costa Community College District ("Mira Costa"). On April 13, 2000, Commission staff met with CUSD officials and discussed the proposed Project. In general, CUSD staff expressed their support of the Project and only inquired whether the lack of impacts identified in the EIR on the Plan precluded CUSD from receiving the Statutory Payments described in Section E of this Report. In fact, as stated to CUSD staff at the meeting, the Commission is required by Redevelopment Law to remit the required Statutory Payments, irrespective as to whether the Project is determined to generate any impacts on the CUSD. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - N 1 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT On June 1, 2000, staff met with the business manager from Mira Costa, who expressed concern over the fiscal impact of the Project on the district's property tax revenues. Unlike most school and community college districts, Mira Costa is a basic-aid disbict under the Education Code, and does not receive supplemental revenue from the state to compliment property tax revenues for operations. Commission staff concurred with Mira Costa's understanding of the basic aid funding, and stated that apart from a relatively small amount of additional tax increment paid to basic aid districts under Section 33676(b) of the Redevelopment Law, the only property tax increment revenue that Mira Costa would receive from the Project Area would come from the Statutory Payments described in Section E of this Report. With this issue addressed, no further meetings were scheduled between Commission staff and Mira Costa representatives. ROSENOW SPEVACEK GROUP, INC. CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION REPORT TO THE CITY COUNCIL JUNE 27,2000 - N 2 - SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT City Air Quality Consultant Report ROSENOW SPEVACEK GROUP, INC. JUNE 27,2000 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO THE CITY COUNCIL owers ngineering June 5, 2000 Mr. Frank Mannen Assistant City Manager City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Subject: Comments/Recomrnendations on Proposed Revisions to Air District Rule 69 Dear Mr. Mannen, Per your request, I am providing my comments and recommendations in this letter regarding the proposed revisions to District Rule 69, “Electric Generating Steam Boilers, Replacement Units and New Units.” The comments and recommendations presented in this letter are based in large part on the discussions that occurred among stakeholders during the May 11, 2000 meeting held by the San Diego Air Pollution Control District (District) to discuss proposed changes to Rule 69. Background Rule 69 requires that all boilers sold by SDGE must meet a 0.15 Ib/MW-hr NO, limit by January 1, 200 1. Cabrillo Power LLC (Cabrillo) purchased the Encina Power Plant (Encina). from SDGE in May 1999. Cabrillo received a variance fiom the 0.15 IbRMW-hr NO, limit in October 1999 after making the case that insufficient time was available to install the NO, control system (Selective Catalytic Reduction - SCR) that is necessary to meet the NO, standard. The variance was granted based on a schedule to phase in SCR over a year-and-a-half period, between February 2002 and July 2003, on the five boilers at the plant. The District is proposing to revise Rule 69 to subject Encina to an annual NO, cap of 440 tons per year (tpy) through 2004, followed by a reduction to 302 tpy from 2005 onward. The cap proposed in the revised Rule is somewhat higher than the cap described in the October 1999 variance for the 2001 through 2004 period (440 tpy versus 419 tpy), and somewhat lower for the period fiom 2005 onward (302 tpy versus 341 tpy). Essentially the proposed NO, cap is a slightly modified version of the cap the plant would have been subject to if SDGE had retained ownership of the plant. The 0.15 IbDvfW-hr NO, limit would be eliminated, although “high use” boilers would be required to meet the 0.15 Ib/MW-hr NO, limit by January 1, 2010. The Cabrillo representatives at the meeting repeatedly stressed that power shortages are imminent in San Diego County and would be exacerbated if the proposed revisions to Rule 69 are not adopted by the District in their current form. These representatives also indicated that if 4452 Park Bouleinard. Suire 209. Sun Diego. CA 92 116- I230 Phone: (619) 295-2072 Fm: (619) 295-2073 .. Mr. Frank Mannen June 5, 2000 Page 2 of 7 Cabrillo is forced to put SCR on the boilers at Encina it would also be forced to operate these units for a considerably longer period of time to recover the high cost of the SCR. Concurrently, Cabrillo argued that the application of SCR would delay the replacement of the relatively inefficient boilers with a state-of-the-art combined cycle gas turbine power plant, also known as “repowering. ” The District indicated that SCR is “cost effective” on the two larger boilers at Encina, Boilers 4 and 5, based on the Best Available Retrofit Control Technology (BARCT). control cost effectiveness calculations performed by the District. The District also indicated that the application of SCR on the smaller boilers, Boilers 1, 2, and 3, is not cost effective based on Cabrillo’s projected low usage rates for these units. Comments District Reasonably Available Control Technology (RACT) and BARCT rules for combustion units, with the one exception of utility steam generators, classify combustion units as either emergency standby, peaker or low use, or (by default) baseload. A peaking (gas turbine) unit or low use unit (industrial boiler) is defined as any unit that is operated 877 hours per year or less. A low use internal combustion engine is defined as any unit that is operated 200 hours per year or less. Any-gas turbine or boiler that is operated more than 877 hours per year is subject to the emission limits of a baseload unit. Units operating less than 877 hours per year are subject to less restrictive emission limits. The application of the 0.15 IbW-hr NO, limit to all five boilers at Encina is consistent with this approach, as Cabrillo has not proposed to limit the usage of any of the five boilers at Encina to 877 hours per year or less. It is not appropriate based on the RACT and BARCT rule precedents established by the District to allow the regulated entity, in ths case Cabrillo, to propose usage rates for Boilers 1, 2, and 3 that exceed 877 hour per year and concurrently determine that it is not cost effective to achieve the required emission limit due to the relatively low usage rate of the combustion units. The SCR control cost effectiveness calculations used in the District’s analysis should be revised to reflect information that became available at the May 11 meeting. The California Independent System Operator (ISO) representative in attendance at the meeting indicated that the IS0 would subsidize a significant portion of the SCR cost. The subsidy that will be provided by the IS0 needs to be included in the control cost effectiveness calculations prepared by the District. It is quite possible that SCR will be cost effective on Boilers 1, 2 and 3 at Encina when the IS0 subsidy is included in the BARCT control cost effectiveness calculations for these units. The proposed elimination of the 0.15 IblMW-hr NO, limit currently applicable to the Encina boilers will result in much higher short-term (hourly, daily, monthly) NO, emission rates from these units. The reason for this is that the units will be operated primarily during periods of peak electrical demand and will be at low load or off-line at other times of the year. The IS0 btr. Frank Mannen June 5,2000 Page 3 of 7 Boiler MW Actual NO, Actual 12-Hour Uniform 0.15 12-Hour NO, Emissions Rating Emission Rate NO, Emissions Ib/MW-hr NO, w/SCR on AU Boilers (lb/MW-hr) (Ib) Emission Rate (lb) 1,669 0.15 193 -... 1,622 0.15 187 1,716 0.15 198 2,160 0.15 540 - .......-.-.... ................................ ......... ......... 1 107 1.30 104 1.30 2 110 1.30 3 4 ’ 300 0.60 --.- .......................... -......... ........- -....--. _.__..... I ____........._.... ..... . ......... ....... I-.-. ..-. _.........- .._..,_______. ......I”... ............... . ................ ........ ....-.......-..--.. ...................................................... -I__............... ................................. ................ ........ 5 330 0.60 2,376 0.15 594 12-hour NO, emission totals: 9,543 1,712 Additional NO, emissions during 12-hour peak demand period with proposed revisions to Rule 69: +7,83 1 lb representative at the May 11 meeting indicated that the p ak le ricity demand period generally occurs between June and September of each year. It is my understanding that the IS0 typically pays a premium price for electricity for twelve hours of each day, typically 9 a.m. to 9 p.m., during periods of peak demand. The Encina boilers are apparently “must run” (IS0 defmition) electric generating units that must be available during periods of peak electrical demand. NO, emissions from the plant will potentially be over five times higher during peak electricity demand periods without a 0.15 IbM-hr NO, limit. Boilers 4 and 5 are currently equipped with flue gas recirculation (FGR) for NO, control. Low NO, burners may be installed on these units in the near hture, though it appears that this is dependent on whether the proposed revisions to Rule 69 are adopted. The NO, emission rate from Units 4 and 5 with FGR is approximately 0.60 Ib/MW-hr. Boilers 1, 2, and 3 are uncontrolled and have a NO, emission rate of 1 .O to 1.3 Ib/MW-hr. Table 1 compares the 12-hour NO, emission rate of the Encina plant operating at rated load in summertime with and without a 0.15 Ib/MW-hr NO, limit. As can be seen in Table 1, the uncontrolled NOx emissions fiom Boilers 1, 2, and 3 are the major contributors of NO, during periods of peak electrical demand. Peridos of peak electircial demand coincide with hot summer days. Ozone exceedances are most common on hot summer days, and NO, is a primary constituent of ozone formation. The 0.15 IbM-hr NO, limit is clearly necessary on Boilers 1, 2, and 3 to prevent high NO, emission rates from Encina on hot summer days. Under the proposed revisions to Rule 69, NO, emissions from Encina will be approximately 4 tons during the 12-hour peak period. If we assume NO, emissions drop to a quarter of this level, 1 tons per 12-hour period, during the off-peak period, 24-hour NO, emissions during the peak season will be approximately 5 tons per day (tpd). Encina could operate almost 90 days in this firing mode with an annual cap of 440 tpy, the proposed cap through 2004, assuming the boilers .P Mr. Frank Mannen June 5,2000 Page 4 of 7 are essentially shut down during other parts of the year. Encina could operate almost 60 days in this firing mode with an annual cap of 302 tpy, the proposed cap from 2005 onward, assuming the boilers are essentially shut down during other parts of the year. This may in fact be a profitable mode of operation for Encina. For example, significant numbers of relatively low efficiency “limited use” power plants are currently being proposed for San Diego County to take advantage of the very high price that is paid for electricity during periods of peak electricity demand. These plants are designed to be profitable with usage rates of less than 2,000 hours per year, relying on the high price paid for electricity during periods of peak demand for their profitability. According to the California Air Resources Board (ARB) statewide emissions inventory database (CEDARS), stationary sources in San Diego County emitted 5,785 tons of NO, in 1996 (most recent complete year available). Of this total, Encina emitted 1,123 tons and South Bay emitted 1,172 tons. These two plants accounted for 40 percent of the County’s stationary source NO, emissions in 1996. Assuming the combined NO, emissions from Encina and South Bay are now 800 tpy and other stationary NO, source emission rates have remained constant since 1996, approximately 4,290 tons of NO, will be emitted from stationary sources in the County in 2000. This equates to an average daily NO, emission rate from all stationary sources in San Diego County of approximately 12 tpd. If the proposed revisions to Rule 69 are adopted, the NO, emission rate from Encina during peak demand days will be approximately 5 tpd, though it could range from 4 to 8 tpd. If the current version of Rule 69 remains in force, the NO, emission rate from Encina will be approximately 1 tpd, though it could range from 1 to 1.7 tpd. In more global terms, daily NO, emission from the stationary source population in San Diego County would be approximately 40 percent higher on peak demand summer days solely as a result of the operating flexibility granted to Cabrillo in the proposed revisions to Rule 69. The presence or lack of SCR will not have substantive financial effect on when or if Cabriilo decides to repower. The installed cost of SCR on a 100 MW boiler, the size range of Boilers 1, 2, and 3, will be in the range of $3,000,000, though it will probably be significantly less than this amount. This cost is derived from the estimated cost range of retrofit SCR installations on natural gas-fired utility boilers, S25h to $35/kw, provided on pg. 88 of the June 1998 NESCAUM report, “Status Report on NO, - Control Technologies and Cost Effectiveness for Utility Boilers.” The estimated SCR cost of $3,000,000 does not take into account that the IS0 will be subsidizing a significant component of this cost. The cost to repower the same boiler with a combined-cycle gas turbine power plant, assuming an installed cost range of $50O/kw to $l,OOO/kw, is $50,000,000 to $100,000,000. Clearly the cost of an SCR retrofit on an existing boiler is small compared to the repower investment. Mr. Frank Mannen June 5, 2000 Page 5 of 7 The real driver for the repower decision will be whether the projected profitability of the repower project will be sufficiently greater than the profitability of the current operating scenario at Encina to justify the investment. The investment required to install SCR on the boilers at Encina, relative to the investment necessary to repower, will have no significant cost impact on the repower decision. The significance to the City of Carlsbad of adding SCR to the boilers is the assurance of greatly reduced NO, emission rates from Encina during peak ozone season. The main external external factors affecting the profitability of Encina will be (1) the addition of large amounts of new local power generation assets, and (2) additional bulk transmission capacity to bring power from distant sources. The Otay Mesa Power Project (510 MW) is currently scheduled to come on-line in 2003. Several additional “limited use” simple cycle gas turbine power projects, with a total capacity between 250 and 500 MW, are also expected to be on-line by 2003. These projects will provide significant relief to San Diego County during periods of peak demand. It is understood that an upgrade of the County’s bulk electrical transmission capacity is ongoing, which will allow significant amounts of additional power to be imported by San Diego County during periods of peak demand. - In any event, the Cabrillo representatives clearly stated at the May 11 meeting that adopting the proposed revisions to Rule 69 will speed the repower process. Cabrillo’s support of the revisions would have merit if the company concurrently commits to a timely repower schedule. Such a commitment would have to be a component of the revised rule. Realistically the repower would have to occur during the existing variance schedule for installation of SCR on the boilers at Encina to avoid hrther relaxation of Rule 69. No repower schedule was offered. The District should not assume that relaxing Rule 69 without a repower deadline written into the revised Rule will have any other effect than greatly increasing thz short-tern emissions of NO, from Encina (compared to the 0.15 1bM-hr NO, limit in the existing Rule) for a very long time. Recommended NO, Control Requirements for the Encina Boilers 1. SCR should be installed on BoiIers 4 and 5 to achieve the 0.15 IbM-hr limit currently required. As noted earlier, the District has indicated that the use of SCR to achieve the 0.15 1bMW-h NO, limit in the current version of Rule 69 is cost effective on Boilers 4 and 5. The existing variance timetable for the installation of SCR on Boilers 4 and 5, February 28, 2002 for Boiler 4 and June 30, 2002 for Boiler 5, remains valid and appropriate. Mr. Frank Mannen June 5, 2000 Page 6 of 7 2. Boilers 1. 2 and 3 should be required to meet the 0.15 Ib/MW-hr NO, limit in Rule 69, following the SCR installation schedule specified in the variance, unless they are specificallv identified by Cabrillo as “low use” (5 877 hourdvear) units. A daily cap (24-hour averanin? time) NOx emission rate equivalent to 0.15 Ib/MW-hr over 24 hours of rated load operation is a potentiallv viable alternative NOx emission limit for Boilers 1. 2 and 3 if these units are designated as “low use” (< 877 hourdvear) units. Boilers 1, 2, and 3 will be the source of the majority of NOx emissions from Encina on peak demand summer days if they remain uncontrolled. If Cabrillo agrees to a permit condition that specifies that these units will in fact be “low use” units, meaning 5 877 hours/year, a daily cap NOx emission rate equivalent to 0.15 Ib/MW-hr over 24 hours of rated load operation is a potentially viable alternative NOX emission limit for Boilers 1, 2 and 3. This scenario assumes Boilers I, 2, and 3 are equipped with FGR and low NOX burners (or equivalent) and operate at rated load for 12 hours or less per 24-hour period and are on hot standby during the remainder of the day. Over a 24-hour period the NOX emissions from any individual boiler will not exceed the NOX emissions from the same boiler operating at rated load continuously and equipped to meet the 0.1 Slb/MW-hr requirement. This approach would allow Cabrillo limited flexibility to carry out some “emissions balancing” over the course of a 24-hour period using (1) a mix of NOx controls less stringent than SCR, and (2) load reduction to meet the emission limit on a 24-hour basis. If Cabrillo requires more operational flexibility than the scenario described in the preceding paragraph allows, the only option is to install SCR on Boilers 1, 2 and 3. 3. The City of Carlsbad should review and comment on the SCR cost effectiveness calculations prepared bv the District to support the proposed revisions to Rule 69. The SCR control cost effectiveness calculations used in the District’s NO, control cost effectiveness analysis should be revised to reflect the information that became available at the May 11 meeting. The IS0 representative in attendance at the meeting, Mr. Ali Amirali (tel. 916-35 1-4458)’ stated that the IS0 would subsidize a significant portion of the SCR cost. The impact of this subsidy needs to be included in the SCR cost effectiveness calculations prepared by the District. It is quite possible that SCR will be cost effective on Boilers 1, 2, and 3 at Encina when (1) the financial impact of the IS0 subsidy and (2) representative “peak electricity demand” operating scenarios are applied to the Boiler 1, 2 and 3 SCR cost effectiveness calculations. Mr. Frank Mannen June 5, 2000 Page 7 of 7 Please give me a call at (6 19) 295-2072 if you have any questions regarding the recommendations in this letter. Sincerely, Bill Powers, P.E. cc: Erin Letsch, Risk Manager File: Rule69 Comments Photo Survey ROSENOW SPEVACEK GROUP, INC. JUNE 27,2000 CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION SOUTH CARLSBAD COASTAL REDEVELOPMENT PROJECT REPORT TO CllY COUNCIL Ponto Dr. Photo 1 - APN: 214-160-21 Example of open storage, typical of the Ponto Dr. area. This condition is among those that cause incompatibilities between residential and industrial uses. Photo 2 - APN: 214-160-28 The corroded and damaged screening on this Ponto Drive parcel is visible from adjacent residential and nonresidential parcels. Note the unpaved street and lack of drainage facilities. Photo 3 - APN: 214-160-17 Inadequate access and incompatible uses are representative of the Ponto Dr. area. This residence abuts a dirt roadway that provides access to a kennel and industrial uses. The road may be inaccessible during rainy weather. Photo 4 and 5 - APN: 214-160-29 This older industrial use is typical of the Ponto area. The property lacks screened storage area for paved parking and access to public right of way. Photo 6 - APN: 214-160-24 This photo exemplifies small lots and incompatible uses along Ponto Dr. On the left, three residences are adjacent to an upholstery shop and kennel; to the right, uses include a warehouse and storage facility. Photo 7 - APN: 214-160-11 Exposed utilities and deteriorated building materials provide a potential fire hazard to this residence structure on Ponto Drive. It appears to be used by an industrial business. Photo 8 - APN: Adiacent to 214-160-24,214-160-25, and 214-160-27 Ponto Dr. presents the following safety hazards: inadequate parking, restricted accessibility, and deficient drainage facilities. Photo 9 - APN: This photograph shows a residential property converted to a service industrial use. The front yard has been completely paved to provide a limited amount of parking and loading area. Encina Power Plant Photo 10 - APN: 210-010-36 The Encina Power Plant consists of five generation facilities; of these units, three are obsolete. Obsolescence requires these units to expend twice the amount of energy to generate the same amount of power as their modem day counterparts. Photo 11 -APN: 210-010-36 Photograph of Encina plant, with a public park in the foreground. Relocating the power plant away from the park and other environmentally sensitive areas could result if the Agency and Cabrillo can work together on constructing a smaller, replacement plant.