HomeMy WebLinkAbout; CARLSBD VILLAGAE REDEVELOPMENT AREA; IMPLEMENTATION PLAN; 2005-07-19IMPLEMENTATION PLAN
CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION
CARLSBAD VILLAGE REDEVELOPMENT AREA
CARLSBAD VILLAGE REDEVELOPMENT AREA
ABOUT THIS IMPLEMENTATION PLAN
Implementation Plan
2005 through 2009
In fulfillment of Article 16.5 of California Community Redevelopment Law ("Law"), the Carlsbad
Housing and Redevelopment Commission ("Commission") has prepared this Implementation
Plan for the Carlsbad Village Redevelopment Project Area ("Implementation Plan"). This
document presents the Commission's proposed redevelopment and affordable housing
programs for fiscal years 2005-06 through 2008-09, which is a four year planning period.
Generally the Law requires implementation plans cover a five year planning period, but the
effectiveness date of the Village Area Redevelopment Plan ("Redevelopment Plan") expires on
July 7, 2009. The Redevelopment Plan effectiveness period is the time period the Commission
may undertake non-housing redevelopment projects and programs. After July 7, 2009 the
Commission will only be able to use remaining non-housing tax increment to retire pre-existing
debt.
Contents
About this Implementation Plan ...................................................................................... 1
Contents ........................................................................................................................ 1
About the Project Area ..................................................................................................... 2
Recent Accomplishments ................................................................................................ 3
Revenue Projections ......................................................................................................... 3
Redevelopment Vision ...................................................................................................... 5
Redevelopment Plan Goals .............................................................................................. 6
Proposed Redevelopment Program ................................................................................ 8
Existing Blight in the Project Area ................................................................................. 8
Commercial Projects ..................................................................................................... 8
Housing Projects ......................................................................................................... 11
Housing Compliance program ....................................................................................... 12
Housing Production ..................................................................................................... 12
Replacement Housing ................................................................................................. 14
Expenditures by Household Types ............................................................................. 14
Page 1
CARLSBAD VILLAGE REDEVELOPMENT AREA
ABOUT-THE PROJECT AREA
Implementation Plan
2005 through 2009
The City of Carlsbad ("City") is located in the northwestern portion of San Diego County,
approximately 5 miles south of Camp Pendleton Marine Base and 30 miles north of downtown
San Diego. Incorporated in 1952, the City encompasses an area of approximately 39.1 square
miles with an estimated population of 92 ,995 persons in 2004. Its natural setting, strong
commercial and industrial base, and proximity to the Pacific Ocean provide a unique living and
working environment.
The Commission was formed in 1981 to
facilitate redevelopment activities in the
Carlsbad Village Redevelopment Project
Area ("Project Area"), which covers 200
acres. The Project Area was adopted in
1981 and encompasses the historic district of .
the City. As a result, the Project Area is rich
in heritage with many examples of eclectic
architecture. Because of its age, the housing
stock is older, with most structures built
before 1970. Redevelopment became an
obvious tool for the City to address issues
relating to deteriorating and dilapidated
buildings, health and safety hazards,
Notable Timeframes
Redevelopment Plan Effectiveness
Adopted 1981 Expires 2009
Tax Increment Collection Expires 2019
Implementation Plan 2005 to 2009
Housing Compliance Plan 2005 to 2009
(For affordable housing program planning)
incompatible land uses, inadequate utilities and infrastructure, as well as severe housing needs.
Since 1981, the Commission has funded the following initiatives to improve conditions in the
Project Area: •
• Public Improvements: The elimination or amelioration of infrastructure
deficiencies through the implementation of the Village Master Plan/Design
Manual, Code Enforcement Programs, along with curb, gutter, sidewalk and
landscaping projects.
• Economic Development: Facilitating tourist serving and transit oriented
development to take advantage of the Carlsbad Village's coastal location and the
Carlsbad Village Commuter Rail Station.
• Community Revitalization: Establishing a planning and development review
function within the Commission to achieve the objectives outlined in the Village
Master Plan/Design Manual for the Project Area. Maintaining and enhancing the
Village character through the use of design guidelines and modified development
standards, resulting in increased opportunities to live, shop and work in the
Village area.
Page2
RECENT ACCOMPLISHMENTS
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
During the past five years, the Commission has facilitated many successful projects and
programs in the Project Area including:
• Acquiring portion of property on Pine Avenue from the Carlsbad Unified School
District to facilitate expansion of the community's Senior Center and related
services;
• Securing additional funds for new redevelopment projects and programs; and
• Funding streetscape improvements and new street furniture, such as benches,
trash cans and landscape planters.
• Developing a vision document for the North State Street Area.
• Working with the Chamber of Commerce on community visioning and
workshops.
REVENUE PROJECTIONS
The Commission is using redevelopment along with other financing tools and partnerships to
facilitate enhancement of the Proj'ect Area as a whole. The Commission had approximately
$1 .7 million 1 in non-housing cash assets on hand at the end of the 2003-04 fiscal year for
Project Area activities. The Commission received approximately $484,443 in non-housing tax
increment revenues in fiscal year 2004-05. The total non-housing cash on hand as of June 30,
2005 was approximately $2.2 million.
From fiscal years 2005-06 to 2008-09, the Commission is projected to receive approximately
$3.9 million in non-housing revenue. In December of 2003, the Commission approved a
financing agreement with the City ("2003 Agreement") that provided additional project and
program funding as identified in the 2003 Agreement. Per the terms of the 2003 Agreement, it
is estimated that the Commission may borrow up to $9 .9 million over the next four years. When
combined with the $3 .9 million in future non-housing tax increment revenue and the projected
$2.2 million in 2004-05 fiscal year end non-housing cash assets, the Commission will have
approximately $16.0 million to fund non-housing projects and programs. The Housing Fund will
accrue approximately $2 .3 million in housing set-aside funds during this four year period.
The total costs associated with implementing the non-housing projects and programs presented
in this Implementation Plan are estimated to be $25.7 million. This creates a funding gap of l $9.7 million when balanced against the $16.0 million in available revenue. The Commission is
exploring private financing options to close this projected funding gap.
1 Statement of Indebtedness for year end balance on June 30, 2004.
Page 3
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
After the Commission's authority to undertake new non-housing redevelopment projects and
programs expires on July 7, 2009, the Commission will receive approximately $16 million in
non-housing revenue from fiscal years 2009-10 through 2018-19, which can only be used to
service debt that existed before January 1, 2004 and fund unmet housing obligations. However,
the Law allows for the Commission to retire remaining debt that was established prior to
January 1, 1994 after its ability to collect tax increment expires on July 7, 2019. However, debt
established from January 1, 1994 to December 31 , 20042 that will be repaid from tax increment
revenue must be paid by July 7, 2019. Per the Redevelopment Plan , this is the last day the
Commission may receive tax increment revenue to retire post January 1994 debt.
2 Projects Area's ability to incur any new debt secured by future tax increment revenue expired on this date.
Page 4
REDEVELOPMENT VISION
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
The redevelopment vision for the Project Area is multi-pronged and focuses on retaining and
expanding businesses and jobs, creating and improving the public facilities and maintaining
existing character of the residential neighborhoods. To achieve this vision the three following
strategies were developed:
• Maintain and Improve Core Businesses. This strategy focuses on retaining existing
businesses, facilitating the expansion of professional office uses and retail businesses and
the development of employment opportunities in the Project Area. Public and private
investments will be encouraged to promote new development while providing support to
existing businesses.
• Deliver "First-Rate" Public Facilities. This strategy seeks to fund public infrastructure and
facility improvements which are critical to attract new development while improving the
quality of life for existing residents, businesses and property owners. Projects include
recreational facilities, public parking, landscape beautification, improved pedestrian, bicycle
and vehicular circulation as well as the installation of other needed improvements to help
stimulate development.
• Quality Infill Development. The Commission will explore opportunities to promote new
mixed-use residential development along the commercial corridors. Commercial districts
that may otherwise struggle can become successful by added residential density in close
proximity to commercial development.
Page 5
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
REDEVELOPMENT PLAN GOALS
The Redevelopment Plan establishes a variety of goals for redevelopment of the Project Area;
these goals frame the near term redevelopment objectives for the Implementation Plan period.
The Redevelopment Plan 's goals are listed below.
Protect Surrounding Neighborhoods: Restrict the highest residential density to A areas in or near the Village Center.
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Encourage Investment: Stimulate and attract private investment.
Insist on Quality Use and Design: Provide an organized system of commercial
land uses to be grouped in a village setting, rather that a strip or sprawled
commercial manner. Such uses should include administrative and professional
offices, retail outlets and public offices.
Emphasize Environmental Character and Public Places: Provide for visual
amenity through such means as landscaped court yards , attractive and harmonious
architectural forms and vest pocket parks.
Eliminate Deteriorated Conditions: Eliminate blight and blighting influences that
continue to exist in Project Area. Also, arrest decay and decline throughout the
Project Area through restoration and rehabilitation of structures.
Enhance Commercial Base of Project Area: Encourage a variety of residential
accommodation and amenity in the Village Area so as to increase the advantages of
close-in living and convenient core shopping, toward the end of encouraging a
diversity of age, income and ethnic characteristics.
Stimulate Economic Growth: Establish the Village Centre area as the North
County's focus for specialty goods and services. In addition provide a variety of
commercial, tourism and recreational activity, especially close to the beach, in
conjunction with special entertainment facilities, restaurants and other uses which
will foster a village concept and not detrimentally impact residential usage.
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CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
Provide First Class Infrastructure: Provide a convenient · circulation system with
an emphasis upon ease of access and convenient, safe and attractive off-street
parking areas. Also, accommodate existing and future local and regional public
transit facilities .
Maintain Village Character: Guide development to preserve aesthetic and cultural
quality through providing within the Village centre , a variety of spaces and locations
for specialty, unique and attractive shops with strong pedestrian orientation.
Locations and spaces should be interconnected with attractive pedestrian belts
incorporating landscaping and/or unique texture.
Enrich with Community Facilities: Provide for pedestrian and bicycle access to
the development clusters and open areas.
Remediate and Beautify: Establish design control in keeping with the desired
village atmosphere.
Page 7
r CARLSBAD VILLAGE REDEVELOPMENT AREA
PROPOSED REDEVELOPMENT PROGRAM
Implementation Plan
2005 through 2009
This section identifies the blighting conditions originally found in the Project Area, and the
proposed project, their related costs, and the Redevelopment Plan goals that will be achieved
during the four year plann ing period of this Implementation Plan.
Existing Blight in the Project Area
According to the Commission's documents prepared to justify establishing a redevelopment
program, the Project Area contained numerous blighting conditions including the following:
• Incompatible Uses
• Inadequate Public Infrastructure
• Irregular Lots under Mixed Ownership
• Physical Conditions that Hinder Economic Viable Use
• Buildings and Infrastructure that are Dilapidated, Unsafe and Unhealthy
In order to address the remaining blight, the Commission will implement the following projects
and programs during the next four years.
Commercial Projects
Project/Program Description Preliminary Goals
Cost Estimate Achieved
Development Standards Review
Complete a financial feasibility and site planning design study
$110,000 ala to determine if current development standards are creating
constraints to new development. This effort will include WORK
recommendations that identify the pros and cons of retaining On-going
or modifying the existing development standards. Tax Increment A This project will eliminate factors hindering economically LIVE
viable uses.
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CARLSBAD VILLAGE REDEVELOPMENT AREA
Project/Program Description
Retail Analysis
Complete a comprehensive retail analysis of the Project Area
to determine the desired consumer environment and what
types of retail uses are in demand by Project Area residents
and visitors . This analysis will help identify the optimal mix of
businesses and the residential/consumer base needed to
support local retailers .
This project will eliminate factors hindering economically
viable uses.
State Street -Village Green
Develop a mixed use project with a green (park) space as the
focal point of the project, or an entire "Village Green". This
development may include a combination of retai l, office or
residential uses surrounding a village green, or may consist of
a Village Green public space only.
This project will eliminate factors hindering economically
viable uses, incompatible uses and inadequate public
infrastructure.
Roosevelt Street -Mixed Use Project
Develop a public parking structure that incorporates retail,
residential and/or office uses.
This project will eliminate factors hindering economically
viable uses and limited off-street parking resources.
Streetscape Improvements -North State Street
Develop a streetscape plan to facilitate streetscape and
landscaping improvements on North State Street between
Grand Avenue and Laguna .
This project will address inadequate public infrastructure.
Preliminary
Cost Estimate
$110,000
On-going
Tax Increment
$6.6 million
On-going
Tax Increment
$8.6 million
On-going
Tax Increment
$440,000
On-going
Tax Increment
Implementation Plan
2005 through 2009
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CARLSBAD VILLAGE REDEVELOPMENT AREA
ProjecUProgram Description
Public Parking Structure
Construct a public parking structure in close proximity to the
Carlsbad Village Commuter Rail Station.
This project wil l address limited off-street parking facilities.
Improved Community Entryway
Enhance the Carlsbad Boulevard and State Street intersection
by either installing traffic signals or a traffic roundabout. A
pedestrian pathway to the Oceanside City limit may also be
constructed.
This project will eliminate factors causing unsafe traffic and
pedestrian circulation issues as well as improve inadequate
public infrastructure.
Preliminary
Cost Estimate
$7 .6 million
On-going
Tax Increment &
Other Funds
$1.1 million
On-going
Tax Increment
Implementation Plan
2005 through 2009
Goals
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CARLSBAD VILLAGE REDEVELOPMENT AREA
Project/Program Description
Enhanced Miscellaneous Streetscape Improvements
Design and construct an enhanced Streets cape Plan for
various Project Area streets. This project may include
installing additional trees, outdoor lighting , decorative paving
and new curbs, gutters and sidewalks where appropriate.
This project will eliminate factors hindering economically
viable uses and inadequate public infrastructure.
Total Preliminary Cost Estimate
_Housing Projects
Project/Program Description
Roosevelt Street Condominiums
The Commission is participating in a residential development
that will produce 11 residential units that would be sold to very
low income family households.
This project will eliminate factors hindering economically
viable uses while facilitating additional affordable housing.
Preliminary
Cost Estimate
$1.1 million
On-going
Tax Increment
$25.7 million
Preliminary
Cost Estimate
$1,320,000
Low-Mod
Housing Set-
Aside Funds,
CDBG & HOME
Funds
Implementation Plan
2005 through 2009
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CARLSBAD VILLAGE REDEVELOPMENT AREA
HOUSING COMPLIANCE PROGRAM
Implementation Plan
2005 through 2009
This section addresses specific requirements with respect to prior affordable housing activities,
and the anticipated new affordable housing initiatives. To date , the Commission has satisfied all
of the affordable housing mandates prescribed by the Law. The Housing Production section will
demonstrate the Commission's compliance with its housing production requirements within the
remaining four years of the effectiveness for the Redevelopment Plan (July 7, 2009).
Implementation plans are used by redevelopment agencies and commissions to identify their
affordable housing needs, and the programs and projects that will address these needs.
Affordable housing obligations generally fall into three categories:
• Housing Production -based on the number of housing units constructed or substantially
rehabilitated in the Project Area, a redevelopment agency must ensure that a percentage of
these units are affordable to very-low, low-and moderate-income households.
• Replacement Housing -redevelopment agencies must ensure that any housing units
destroyed or removed as a result of a redevelopment project are replaced within four years.
• Targeting Household Types -identify the amount of housing set-aside funds the
redevelopment agency will allocate on increasing and improving the supply of housing
affordable to very low income households and low income households, and housing for
residents under the age of 65 .
The housing programs the Commission will implement during the next four years are described
below.
Housing Production
To estimate the number of housing units that need to be affordable to low-and
moderate-income households, the Commission estimated the total number units to
be constructed or substantially rehabilitated in the Project Area and applied
mandates established by the Law. Generally, 15% of all privately developed or
substantially rehabilitated units within a redevelopment project area must be
affordable to very low, low and moderate income households, and not less than 40%
of these units must be affordable to very low income households. Further, 30% of all
Commission developed or substantially rehabilitated units must be affordable to very
low, low and moderate income households and not less than 50% of these units
must be affordable to very low income households. All of the affordable units must
feature covenants that maintain their affordability for 45 years, if they are owner-
occupied dwellings, and 55 years, if they are rental dwellings.
The chart on the following page summarizes the production goals over various time
periods as required by the Law. The number of required affordable housing units is
based upon statutory thresholds, and the Commission is responsible for ensuring
that the appropriate number of affordable units is created during the four year
planning period.
Page 12
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
Actual and Projected Housing Needs by Time Period
Time Period Actual/Assumed Housing Units Affordable Units
Constructed and Substantially Rec uired
Rehabilitated in the Project Area Total Very Low
Prior to 2005 105 15.8 6.3
4 Year Forecast 117 17.6 7.0
( 2005 to 2009)
Redevelopment Plan Duration 222 33.4 13.4
(Until 2009)
During the four year planning period the following three projects will add 117 new
residential units to the Project Area: Laguna Point with 21 units (including 3 units for
lower income levels), Village by the Sea with 65 units (including 11 units for lower
income levels) and Roosevelt Street Condominiums with 11 units, all for very low-
income households. As demonstrated in the table above the 117 new units will
generate a requirement to produce 18 affordable units (including 7 very low-income
units).
However, as shown in the table below, the Commission has assisted in the
production of a substantial number of affordable housing and currently exceeds its
mandates for affordable housing production when considering the production of units
both inside and outside the Village Redevelopment Area . The Commission assisted
in the production of 72 affordable units (including 28 very low-income units) prior to
2005, which has created a surplus of 56 affordable units including 22 very low-
income units. All of these units were built or acquired outside of the Project Area in
the following three developments; Laurel Tree, Tyler Street and Villa Loma
apartment complexes. Fulfillment of the production goals as demonstrated in the
following table; whereby the 117 new units are producing 25 lower income affordable
units (including 11 very low-income units) and combined with the 72 affordable units
(including 28 very low-income units) produced prior to 2005, will create a total of 97
affordable units (including 39 very low-income units) over the duration of the
Redevelopment Plan. When the total (from the table above) of 34 affordable units
(including 13 very low-income units) over the duration of the Redevelopment Plan is
subtracted from the 97 affordable units (including 39 very low-income units) a surplus
of 63 affordable units and 26 very low-income units remains.
Page 13
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
Fulfillment of Affordable Housing Production Requirements by Time Period
Time Period Units Units Additional Net Surplus
Required (see Produced Units Units
previous Required Produced
table)
Total VL Total VL Total VL Total VL
Prior to 2005 16 6 72 28 0 0 56 22 -
4 Year Forecast 18 7 25 11 0 0 7 4 . -
Redevelopment Plan Duration 34 13 97 39 0 0 63 26
(Until 2009) -.
Replacement Housing
During the Implementation Plan period, the Commission does not anticipate that any
Commission-assisted projects will result in the displacement or removal of housing
units. Consequently, the Commission does not anticipate that any housing will need
to be replaced at this time.
Expenditures by Household Types
Based on preliminary estimates as of April 2005, the Commission anticipates that the
low and moderate income housing fund has a fund balance of approximately $2.8
million3. Over the four year planning period it is conservatively estimated that the
Project Area will generate $2 .3 million in 20% housing set aside revenue.
At a minimum, the Commission's low-and moderate-income housing set-aside
revenue is to be expended in proportion to the community's need for very low-and
low-income housing, as well as the proportion of the population under the age of 65 .
Based on statistics from the Regional Housing Needs Assessment ("RHNA"), used
by local government to meet the state requirement for affordable housing by
category and 2000 Census statistics, the minimum thresholds for housing program
expenditures on the following page would be required over the term of the
Implementation Plan. During the 2005-06 fiscal year the Commission is proposing to
spend up to approximately $625,000 of housing expenditures to facilitate the
development of 11 units for very-low income households. As discussed earlier the
Commission has exceeded its housing production requirements and will be
3 Based on the housing fund year end balance (on June 30, 2004) of $2 ,363 ,300 and combined with $433,299
estimated housing set-aside revenue for the 2004-05 fiscal year.
Page 14
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
evaluating additional programs and projects as to their ability to meet RHNA
requirements.
Household Type Minimum Percentage of
Housing Set Aside
Expenditures over
Implementation Plan
Very Low Income Households
(Based on community's need for housing for households 30%
earning less than 54% of County median income)
Low Income Households
(Based on community's need for housing for households 22%
earning less than 86% of County median income)
Household Age 65 & Over
(Based on percentage of the City's 2000 Census 14%
population age 65 and over)
Notes:
Percentage of very low and low income household expenditures based upon City of Carlsbad
Regional Housing Needs Assessment in which 2,499 (30%) of the total 8,3537 units in the City's
housing are applicable for very low income households and 1,811 units (22%) are applicable for
low-income households.
Percentage of expenditures for housing age 65 and over based on 2000 Census data for the City,
wherein 10,976 residents ( 14%) of the total population of 78,247 are age 65 and over.
• Housing Set-Aside Expenditures since January 2002. These proportionality
requirements affect expenditures over a ten-year period, although the law permits
the compliance initially for a period beginning in January 2002 and ending in
December 2012. It is estimated the Commission has expended $204,142 of the
$1, 100,0004 housing set-aside funds received since January 2002. These funds
have been spent on various administrative activities leading to the site selection
for the Roosevelt Street Condominiums, which is currently in the planning phase.
All 11 units of this project will be income restricted to households with very low-
incomes. As additional projects are identified, the Commission expects to be in
compliance with all income categories. The chart below documents the amount of
low-and moderate-income housing fund revenue used since January 2002.
4 Total of housing set-aside for fiscal years 2001-02, 2002-03 and 2003-04.
Page 15
CARLSBAD VILLAGE REDEVELOPMENT AREA
Implementation Plan
2005 through 2009
Housing Expenditures and Proportionality Since January, 2002
Income Category 2001-02 2002-03 2003-04 Period to Date
Very Low Income $45,171 $107,647 $51,324 $204,142
Low Income $0 $0 $0 $0
Moderate Income $0 $0 $0 $0
Total Expenditures: $45,171 $107,647 $51,324 $204,142
• Family Units Assisted by Housing Set-Aside Fund. State law also requires a
recap of the number of the projects assisted by the housing set-aside fund over
the past Implementation Plan period divided by family projects (open to all age
groups) and senior projects (restricted to residents age 65 and older). The
Roosevelt Street development will create 11 new units restricted to households
with very low-incomes. As additional units are developed through the remaining
four year planning period, the Commission expects to be in compliance with this
requirement.
• Housing Units Constructed During Prior Implementation Plan Without
Housing Set-Aside Funds. Since January 2000, funding was provided in the
amount of $200,000 from Federal Community Development Block Grant funds,
$1,021 ,855 from Federal Home funds, along with redevelopment housing set-
aside funds . With these funds, the Commission was able to construct affordable
units featuring long term covenant restricted units (affordable units with
covenants of at least 45 years for ownership housing or 55 years for rental
housing).
Page 16
Carlsbad Housing Redevelopment Commission
2965 Roosevelt Street, Suite B
Carlsbad , California 92008-2389
(760) 720-2037
Adopted July 19, 2005