HomeMy WebLinkAbout2003-12-02; Housing & Redevelopment Commission; 364; Village Redevelopment Project Area PlanHOUSING AND REDEVELOPMENT COMMISSION - AGENDA BILL
AB# 364
MTG. 12/02/03
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TITLE: DEPT. HD@ W
AMENDMENT TO 2000-2004 VILLAGE
REDEVELOPMENT PROJECT AREA IMPLEMENTATION CITY ATTY. I PLAN DEPT. H/RED CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 375
Area Implementation Plan.
approving an amended 2000-2004 Village Redevelopment Project
ITEM EXPLANATION:
Section 33490 of the California Health and Safety Code requires that all Redevelopment Agencies adopt
implementation plans every five years. On December 14, 1999, the Housing and Redevelopment
Commission adopted a Village Project Area Implementation Plan for the period beginning January 1, 2000
and ending on December 31, 2004. The Plan summarizes the Agency’s goals and objectives for the
period, identifies anticipated programs and projects, and outlines estimated expenditures of tax increment
funds and Low/Moderate Income Housing Set-Aside Funds. All expenditures for programs and projects
funded by the Redevelopment Agency during the period of the Plan must be consistent with the adopted
Implementation Plan.
From time to time, it may be necessary for the Housing and Redevelopment Commission to amend an
adopted Implementation Plan to add, delete or modify anticipated programs and/or projects, and/or to
increase or decrease fundingkost estimates. The Commission approved one such amendment for the
Village Implementation Plan in 2002. As a result of a recent needs and financial capacity analysis for the
Village Area, Staff is recommending that an additional amendment to the Plan be made at this time to
address modifications in the list of anticipated programs and projects and to the funding/cost estimates.
A recent financial analysis of the Village Redevelopment Area indicates that the Agency has the capacity to
incur additional debt of approximately $14.4 million to fund new projects. This funding may be used by the
Agency for public projects within the Village Redevelopment Area that eliminate blight or blighting influences.
A project needs analysis indicates that there are a number of public projects that could be implemented within
the Village Area to provide benefit to the ongoing revitalization and redevelopment efforts. Therefore, under
separate action, staff will request authorization from the Housing and Redevelopment Commission to incur
the additional debt of $14.4 million for the identified redevelopment projects. In order to be able to incur the
additional debt, the Village Project Area Implementation Plan must be amended to identify the additional
projects to be funded by the Agency.
With the assumption that the Commission will want to incur additional debt, staff revised the Spending Plan
from the Implementation Plan together with the narrative that provides a description of each program or
project to be funded by the Redevelopment Agency. The revised Spending Plan is attached as Exhibit 2 to
this report. The scope of projects listed in the original Plan has been expanded to include additional activities.
In addition, the expenditure estimates have been revised. The new estimate of five year expenditures within
the Implementation Plan has been increased from $13.5 million to $36.7 million. It is important to note that at
this time there is not an adequate amount of funding available to proceed with all of the programs and
projects indicated within the Implementation Plan. Future action may be required by the Commission to further
prioritize the programs and projects for funding purposes, if additional funding does not become available
from other sources. As appropriate, the Agency will contract with the City to implement the programs and/or
construct the projects noted within the Implementation Plan. In addition, the City will provide funding to the
Agency as needed and per the terms of the City/Agency Cooperation Agreement and/or a subsequent
Reimbursement Agreement. Any funding advanced to the Agency will be repaid through future tax increment
funds.
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Page 2 of AB # 364
To revise the Implementation Plan, the Housing and Redevelopment Commission must hold a public hearing
to receive input, and then approve the proposed revisions based on that input, if any. Notices regarding the
public hearing were published in the North County Times on November 1, 12, and 21, 2003. Exhibit 2
provides a copy of the revised Spending Plan, a section of the Village Redevelopment Implementation Plan.
Exhibit 3 provides a copy of the complete Village Implementation Plan with the noted revisions incorporated
into it.
Staff is recommending that the Commission adopt the revisions to the Village Redevelopment Implementation
Plan. Under separate action items, the Commission will be asked to authorize the additional debt to fund the
projects set forth within the attached Plan and to approve the repayment schedule for all of the past, present
and future debt of the Village Redevelopment Area.
ENVIRONMENTAL REVIEW
Adoption of the Implementation Plan and related amendments are not a “project” requiring review under
the California Environmental Quality Act (CEQA). Subsequent action on the specific projects outlined within
the Implementation Plan will be subject to separate CEQA review if not already covered by a recent EIR for
the redevelopment plan or a program EIR adopted in connection with a particular project or program.
FISCAL IMPACT:
The Village Redevelopment Area Implementation Plan for 2000-2004, as amended, estimates total
expenditures for the identified programs and projects at $36.7 million. At this time, the Redevelopment
Agency estimates that it has or will be able to fund approximately $28 million of the total cost of the noted
programs and project with tax increment funds. If additional funding does not become available, the
Housing and Redevelopment Commission will be asked to further prioritize the programs and projects at a
later date. The Agency will contract with the City, as appropriate, to implement the programs and/or construct
the projects noted within the Implementation Plan. In addition, the City will provide funding to the Agency as
needed and per the terms of the City/Agency Cooperation Agreement and/or subsequent Reimbursement
Agreement. Any funding advanced to the Agency will be repaid through future tax increment funds.
EX HI BITS:
1. Resolution No. 375 adopting the Amended Village Redevelopment Area
Implementation Plan for 2000-2004.
2. Amended Spending Plan and Program/Project Descriptions from the Village Redevelopment
Area Implementation Plan for 2000-2004.
3. Amended Village Redevelopment Area Implementation Plan for 2000-2004 (on file in the City
Clerk‘s Off ice)
DEPARTMENT CONTACT: Frank Boensch, (760) 434-281 8, fboen Qci.carlsbad.ca.us
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HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 375
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF
THE CITY OF CARLSBAD, CALIFORNIA ADOPTING THE AMENDED VILLAGE
REDEVELOPMENT PROJECT AREA IMPLEMENTAION PLAN FOR 2000-2004.
WHEREAS, Section 33490 of the California Health and Safety Code requires all
redevelopment agencies to adopt implementation plans every five years; and,
WHEREAS, on December 14, 1999 the Housing and Redevelopment Commission adopted
a Village Project Area Implementation Plan for the period beginning January I, 2000 and ending on
December 31, 2004; and,
WHEREAS, the Village Area would benefit from amending the Implementation Plan to allow
the Redevelopment Agency to incur additional debt and increase the scope of projects that are
included in the current Plan; and,
WHEREAS, the Housing and Redevelopment Commission has taken all testimony into
account.
NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
1. That the above recitations are true and correct.
2. That the Housing and Redevelopment Commission hereby adopts the Amended Village
Redevelopment Project Area Implementation Plan for the period January 1, 2000 to
December 31,2004.
3. That the Housing and Redevelopment Commission authorizes the Executive Director of the Carlsbad Redevelopment Agency and designated staff to administer the various
programs/projects identified within the Implementation Plan.
4. That adoption of the Implementation Plan is not a "project" requiring review under the
California Environmental Qualitiy Act (CEQA). Subsequent action on the specific
projects outlined within the Implementation Plan will be subject to separate CEQA
review if not already covered by a recent EIR for the redevelopment plan or a program
EIR adopted in connection with a particular project or program.
PASSED, APPROVED AND ADOPTED at a special meeting of the Housing and
Redevelopment Commission of the City of Carlsbad, California, held on the 2nd day of December,
2003, by the following vote, to wit:
AYES: Commissioners Lewis, Finnila and Kulchin
NOES: None
ABSENT: Commissioners Hall an
ABSTAIN: None
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EXHIBIT 2
Property Acquisition & Market Analysis for $ 13,800,000 2000-2004 Commercial Development projects within the
Village Redevelopment Project Area
Comprehensive study/plans for land use, design $ 255,000
development strategies
standards, public improvement enhancements and 2000-2004
Facade Improvements and Signage Design $ 50,000 2000-2004
Financial Assistance Program
Village Area Beautification Program - Street $ 95,000 2000-2003
Furniture, Planters, Etc.
E Village Public Parking Enhancement Program I $ 7,900,000 I 2000-2004 I
F Village Public Relations Campaign I $ 50,000 I 2000-2001 ll
2000-2004 T Village Sidewalk Reconstruction Project or other public improvements within the Village $2,650,000
H -
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Affordable Housing Programs & Projects, $3,900,000 2000-2004
including administration
Tax Allocation Bond Payments for previous $5,400,000 2000- 2004
Streetscape project activity - -
J 11 General Administration of Redevelopment Agency 1 $2,600,000 I 2000-2004
* The above chart lists all potential projects being considered for the Village Redevelopment
Area that would assist in eliminating blighting influences. Adequate funds will not be available
to complete all the above identified projects. Projects will be undertaken on a priority basis
based on feasibility and property availability.
The following provides a narrative of each proposed program or potential project as highlighted
in Table 1, including how it addresses the issue of blight.
A. Property Acquisition and Market Analysis for Commercial Development:
Over the next five years, the Carlsbad Redevelopment Agency will encourage the development
of one or more commercial projects which would eliminate existing blighting influences within
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the Village Redevelopment Area and/or encourage the elimination of blight on other parcels. The
Agency has identified two primary areas to be considered for these commercial projects. They are
as follows:
Specialtv Commercial Center near Village Commuter Rail Station (Grand Avenue and
State Street). The uses at a new Specialty Commercial Project near the Commuter Rail
Station could include a mix of retail shops, restaurants, offices and residential units as
well as a Village Green gathering place for people. By encouraging new commercial
development within the area of the new Station, the Redevelopment Agency hopes to
motivate other property owners within this area, primarily the north State Street area, to
rehabilitate deterioratinghnsightly buildings. The north State Street area has been
identified as an area which requires focused "clean up" attention from the Redevelopment
Agency. In conjunction with this proposed commercial development facilitation, the
Redevelopment Agency will work with the North County Transit Development Board to
provide additional public parlung (i.e., a parking structure) at the site of the Village
Commuter Rail Station.
Commercial Center at Roosevelt Street and Carlsbad Village Drive. The Carlsbad
Redevelopment Agency intends to move forward with plans to facilitate the development
of a commercial project at or near the intersection of Roosevelt Street and Carlsbad
Village Drive. This area has great potential for development. Several properties within
this area are currently underutilized. Without some assistance from the Agency,
development will most likely not occur due to an inability to provide adequate parking
and the small, irregular shape of some of the lots. The concept for a proposed project
within this area includes a mix of uses to include retail, restaurants andor other
commercial development which may also provide for a public parking lot (perhaps a
parking structure).
B. Comprehensive study/plans for land use, design standards, enhanced public improvements
and development strategies:
Over the next five years, the Redevelopment Agency will continue its efforts to develop, or assist
in the development of studies and plans which identify appropriate land use, design standards,
enhanced public improvements and strategies for the entire Village Redevelopment Project Area
and/or sections within the project area:
The Agency will assist with a report and public relations on the formation of a Parking
and Business Improvement District (PBID) within the Village Redevelopment Area.
A study will be completed on street lighting within the Village and surrounding areas.
The results of the study will be used to determine the locations for additional or enhanced
street lighting.
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0 A study will be completed on the potential re-uses for the property known as the Oak
Street Yard which currently houses staff of the City’s Public Works Department. It is
anticipated that within 3 to 4 years, the Public Works Department will no longer require
offices at the Oak Street location. Because this property is located within the Village
Redevelopment Area, new uses for the property should be consistent with the Village
Master Plan. Therefore, redevelopment funds will be used to prepare a feasibility study of
potential uses for the site. This study will be combined with another project which will
result in adoption of a Master Plan (for appropriate land uses) for the Transportation
Corridor within the Village Area.
0 A study will be completed to identify those streets in the Village Redevelopment Area
where existing on-street parallel parking may be converted to angled parking in order to
increase the amount of public parking spaces and provide traffic calming measures.
0 A comprehensive right-of-way analysis will be completed to determine how to maximize
on-street parkmg in the Village Redevelopment Area. The analysis will identify existing
right-of-way and potential right-of-way to be obtained from future development in order
to maximize on-street parking and enhanced landscaping.
C. Facade Improvement and Signage Financial Assistance Program:
Over the next five (5) years, the Redevelopment Agency will continue to encourage
propertybusiness owners within the Village Redevelopment Project Area to improve their
properties, specifically building facades, and replace non-conforming and/or outdated building
signage:
0 A Facade Improvement and Signage Financial Assistance Program will be funded
through the Carlsbad Redevelopment Agency to eliminate blighting conditions created
through deteriorated buildings and outdated/inappropriate signage within the project area.
The Agency will provide matching funds for facade improvements and new signage,
including design costs.
D. Village Area Beautification Program - Street Furniture, Planters, Etc.:
Over the next five (5) years, the Redevelopment Agency will continue its efforts to beautify the
Village Redevelopment Area by:
0 The Redevelopment Agency will enhance the Village Area through the installation of
additional street furniture including benches, trash cans, trees, planters, and banners or
other decorative features, as well as provide for improved maintenance activities.
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E. Village Public Parking Enhancement Program:
Over the next five (5) years, the Redevelopment Agency will continue its efforts to address
parking issues within the Village Redevelopment Area:
0 The Redevelopment Agency will provide funding to address impediments to use of
existing public parking lots and/or addition of public parking as determined to be
appropriate. To increase utilization of existing public parking lots, it may be necessary to
make changes such as additional lighting, reconfiguration, etc. If the opportunity presents
itself, the Agency will purchase property for future parking, which may include surface
parking or the construction of a multi-level parking structure within a quarter mile radius
of the Village Commuter Rail Station. This program was developed as part of the Village
Parking Program that was approved by the Housing and Redevelopment Commission in
June, 1999.
F. Village Public Relations Campaign:
Over the next one to two years of this Plan, the Redevelopment Agency will implement a public
relations campaign to encourage pedestrian activity within the Village Redevelopment Area.
Funding has been appropriated to support a program to inform the public as to the locations and
number of public parking facilities located within the Village Area, and to encourage the public
to get out of their cars and “walk about” the Village. This program is identified in the Village
Parking Program which was approved by the Housing and Redevelopment Commission in June,
1999.
G. Village Sidewalk Reconstruction Project or Other Public Improvements:
Over the next five years, the Redevelopment Agency will continue its efforts to improve the
Village Redevelopment Area through the construction, reconstruction or installation of additional
public improvements within the Village Area. These projects may include one or more of the
following projects:
0
Street Improvements
Enhanced entryway treatments
Village Area Sidewalk and Curb Reconstruction
Installation of additional landscape medians and/or landscape planters
Miscellaneous Infrastructure Enhancements, including enhanced streetscape improvements
H. Affordable Housing Programs and Proiects, Including Administration:
Over the next five years, the Redevelopment Agency will continue to assist for-profit and/or non-
profit affordable housing developers to provide affordable housing for low and moderate income
households both inside and outside the Village Redevelopment Area. For the first two to three
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years, the Agency will use Low and Moderate Income Housing Funds (LMMF) to repay a loan
with interest (approximately $450,000) provided by the City of Carlsbad’s General Fund for the
acquisition of an existing Senior Apartment Complex (75 units) for the purpose of providing
affordable housing for very low and extremely low income senior households.
I. Repayment of Tax Allocation Bonds Issues for Previous Proiect(s):
The Redevelopment Agency will continue to make annual payments on the Tax Allocation
Bonds which were issued originally in 1988, and refinanced in 1993, for the purposes of
constructing street improvements, providing public parking and construction of a new senior
center to benefit the Village Redevelopment Area. The street improvements resulted in improved
circulation within the Village Redevelopment Area, greatly improved drainage and aesthetically
enhanced the two major thoroughfares within the redevelopment project area. The
Redevelopment Agency also hopes that the enhancement of Carlsbad Village Drive and Carlsbad
Boulevard will encourage new businesses to locate within the Village. The public parking lots
were needed due to inadequate parking on many privately-owned retail sites within the core
downtown area of the Village. With refinancing of the bonds in 1993, additional bond proceeds
were generated which have been used to provide affordable housing, acquire property to facilitate
commercial development, initiate a financial assistance program for facade and signage
improvements and to complete various studies and strategies to benefit the Village
Redevelopment Area.
J. General Administration of Agency (Housing & Redevelopment Department):
Over the next five years, the Redevelopment Agency will continue to reimburse the City of
Carlsbad for costs of Housing and Redevelopment Department Staff working on projects
outlined within this Implementation Plan and for general administration expenses related to this
plan and the Village Redevelopment Plan.
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VILLAGE REDEVELOPMENT PROJECT AREA
IMPLEMENTATION PLAN
2000-2004
Effective
January 1,2000
Revised and Updated August, 2002 and December, 2003
Prepared by
City of Carlsbad
Housing and Redevelopment Department
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INTRODUCTION
On October 6, 1993, Governor Wilson signed AB 1290 which took effect on January 1, 1994.
Entitled the Community Redevelopment Law Reform Act of 1993, the bill included the most
sweeping redevelopment changes in years. The changes affected both existing project areas as
well as new plan adoptions and amendments. The modifications included changes to the
definition of blight, the termination of fiscal review committees and time limits on all project
areas.
AB 1290 was authored by Assembly Member Phil Isenberg and was sponsored by the California
Redevelopment Association to address perceived major abuses and problems in redevelopment
practice in a responsible, constructive manner and to refocus the redevelopment process on
statewide concerns of alleviating blight, stimulating economic development and providing
affordable housing. AB 1290 was amended by the enactment of SB 732 on September 27, 1994,
which made numerous technical and clarifying revisions.
AB 1290 added Section 33490 to the Health and Safety Code. This new section requires agencies
to produce implementation plans every five years. For Redevelopment Plans adopted prior to
January 1, 1994, the first implementation plan was to be adopted by December 31, 1994. The
Carlsbad Redevelopment Agency adopted its first implementation plan in 1994 as required by the
new law. The Agency must now adopt its second implementation plan for the next five year
period of 2000 to 2004.
IMPLEMENTATION PLAN REOUIREMENTS
The Implementation Plan required by AB 1290 must contain the following:
0 Specific Goals and Objectives for the next five (5) years;
0 Specific Programs, including potential projects and estimated expenditures for the next five (5)
years;
0 An explanation of how the goals, objectives, programs and expenditures will eliminate blight;
0 An explanation of how the goals, objectives, programs and expenditures will implement the
affordable housing requirements of Sections 33334.2,33334.4, 33334.6 and 33413;
0 The number of housing units to be rehabilitated, price-restricted, assisted or destroyed;
0 Plans for using annual deposits to the Housing Fund;
0 If a planned program, or potential project, will result in destruction of existing affordable housing,
an identification of proposed locations for the replacement housing the agency will be required to
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produce pursuant to Health and Safety Code Section 33413;
e A section addressing Agency-developed and Project Area Housing, pursuant to Health and Safety
Code Section 33413(b);
e A section addressing the use of Low and Moderate Income Housing Funds pursuant to Health and
Safety Code Sections 33334.2, 33334.4 and 33334.6, which shall include the amount available in
the Fund and the estimated amounts which will be deposited during each of the next 5 years, and a
housing program with estimates of the number of new and rehabilitated units to be assisted during
each of the next 5 years.
The project area affordable housing production plan required by Health and Safety Code Section
3 34 1 3 (b)(4).
The Carlsbad Redevelopment Agency can only adopt an implementation plan after first holding a
noticed public hearing. The first notice must be published at least thirty-one (3 1) days prior to the
public hearing. The Implementation Plan must be revised and adopted every five (5) years.
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EXECUTIVE SUMMARY
As required by AB 1290, the Carlsbad Redevelopment Agency has produced the following five
year implementation plan. It summarizes the Agency's goals and objectives for the next five years
(2000-2004) as well as anticipated programs, including potential projects, and expenditures of
tax increment funds and Lowhioderate Income Housing Set-Aside Funds.
The primary goals of the Agency for the next five years remain the same as those outlined for the
previous five years, and as set forth within the Village Master Plan and Design ManuaE. The
goals are to:
1. Establish Carlsbad Village as a quality shopping, working and living environment.
2. Improve pedestrian and vehicular circulation in the Village.
3. Stimulate property improvements and new development in the Village.
4. Improve the physical appearance of the Village.
5. Provide signage which is supportive of commercial vitality and a unique Village
image.
Programs of Action and Expenditures
In addition to addressing the above goals, the purpose of all actions of the Redevelopment
Agency will be to eliminate blight within the Village Redevelopment Area.
The Agency intends to expend up to $14.6 million to assist in the development of projects within
the Village to either eliminate an existing blighting influence and/or encourage elimination of
blight on other parcels within the Village. The Agency will expend approximately $25,000 on a
study to consider the establishment of a Parking and Business Improvement District (PBID) and
an estimated $125,000 on various other studies and plans for land use, design standards, public
improvement enhancements and development strategies for the Village and/or other areas which
have an impact on the Village. In addition, the Agency will continue its funding of a Facade
Improvement and Signage Funding Program, and provide funding to install public improvements
and additional street furniture and landscape planters throughout the Village Area. The Agency
will also implement a public relations campaign. The total of expenditures for various programs
and projects to be funded over the next five years by the Village Redevelopment Agency is
projected to be approximately $14.6 million.
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In terms of affordable housing programslprojects, the Agency expects to spend a total of
approximately $3.9 million to assist in the development of new housing units, both inside and
outside the Redevelopment Project Area, which will be affordable to low and moderate income
households. This will include funding for administrative costs as well as housing projects.
Finally, the Agency will continue to fund annual payments and related costs required on the 1993
Tax Allocation Bonds; the total payments over the five year period of this plan are projected to
be $5.4 million. The Agency will also continue to use tax increment funds to finance
approximately $2.6 million in costs related to general agency administration, which includes
public parking lot leases. The total estimated expenditures, including affordable housing
programs, over the period of this plan is $26.5 million.
Affordable Housing
As a general rule, the Redevelopment Agency does not intend to "develop" new housing units, or
rehabilitate existing units, on its own. Although there may be circumstances which would cause
the Agency to purchase existing units or property to be used long term for affordable housing
purposes, the Agency will primarily assist private (for profit or non-profit) housing developers,
through the use of Low and Moderate Income Housing Set-Aside Funds, to buildprovide
affordable housing units both inside and outside the Redevelopment Project Area. Over the next
five years, the Agency intends to assist in the development of approximately 353 units of housing
affordable to low and moderate income households. It is anticipated that a minimum of 38 (1 1%)
of these units will be affordable to extremely low income, 178 (50%) to very low income, and 90
(25%) to low income; the remainder of the units 42 or (12%) will be affordable to upper income
households.
Although some of the projects the Agency may assist will be mixed income projects, the
Agency's Low and Moderate Income Housing Set-Aside Funds will only be used to finance units
within the project(s) which benefit low and moderate income persons. The percentage of low and
moderate income affordable units the Agency intends to assist with Low and Moderate Income
Set-Aside Funds will meet or exceed the percentage of low and moderate income affordable units
needed within the community, as indicated in the City of Carlsbads Housing Element and
Consolidated Plan. The 1999 draft Housing Element states that 38% (or 2361 units) of the new
development within the community must be affordable to lower income households, 23% (or
1430 units) to moderate income households and 39% (or 2423 units) to upper income
households. The total number of affordable housing units needed in Carlsbad is 6,214 units. The
affordable housing production program outlined within the following Implementation Plan is,
therefore, consistent with the need demonstrated within the Carlsbad Housing Element.
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The Agency intends to comply with the following rules related to the use of Low and Moderate
Income Housing Set-Aside funds andor Inclusionary Housing requirements as related to each
housing project built within the Village Redevelopment Project Area andor assisted with
Agency funds:
If the Agency assists with the development of affordable housing with Low and Moderate
Income Housing Funds, either inside or outside the Redevelopment Project Area, the
percentage of units to be affordable to low and moderate income households will be equal
to or exceed the percentage of low and moderate income housing funds invested within
the project.
If the Agency develops housing within the Village Project Area, at least thirty percent
(30%) of the units will be affordable to low and moderate income households and fifty
percent (50%) of those units will be affordable to very low income households.
If the Agency provides no assistance to a housing project but the project is constructed
within the boundaries of the Village Redevelopment Project Area, then the project will
have an inclusionary housing requirement to provide at least 15% of the units in a manner
which is affordable to low and moderate income households and forty percent (40%) of
these units must be affordable to very low income households. These inclusionary units
may be provided within the new project or within a "combined" project to be constructed
at another location within the Village Redevelopment Project Area. In some cases, the
inclusionary unit requirement may also be met in a "combined" project located outside
the Project Area on a "2 to 1 ratio", with the approval of the City Council and Housing
and Redevelopment Commission; this means for every one (1) unit required two (2) units
must be provided if requirement is to be satisfied outside the Project Area.
For all development within the Village Redevelopment Project Area which resulted in the
construction of new housing units during the period from July 1981 to December, 1994, the
Agency met the inclusionary housing obligation of eighteen (18) units in the Villa Lorna
Affordable Apartment Project. Per an agreement with the Carlsbad Redevelopment Agency, the
subject project provides for a total of 344 affordable housing units for low and moderate income
households. The prior year inclusionary housing obligation for the Village Redevelopment Area
was met under the required 21 ratio. The project provides for at least thirty-six (36) units of
housing affordable to low and moderate income households with at least fourteen (14) units
affordable to very low income households. The Villa Lorna Apartment Project was constructed as
of 1996 and is currently fully leased. This project, therefore, assisted the Agency to completely
satisfy its "prior year" inclusionary housing requirement for the Village Redevelopment Project
Area.
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From January, 1995 to the present, there has been no construction of “housing units” within the
Village Redevelopment Area. Therefore, there was no inclusionary housing obligation. During
the period of this plan, if any new “housing units” are constructed, the developer/ builder will be
required to satisfy the related inclusionary housing obligation on site, or within a “combined
affordable housing project” approved by the City Council and/or Housing and Redevelopment
Commission.
The Agency is required to prepare a Housing Replacement Plan for redevelopment activities
which result in the removal of housing from the Village Project Area which is affordable to low
and moderate income households. The Agency does not intend to take actions in the future which
result in the removal of affordable housing within the Village Project Area; the “housing
replacement plan rule” will, therefore, not apply to the Agency.
Summary
This Executive Summary has highlighted the programs and potential projects to be implemented
by the Agency over the next five years. The following Implementation Plan provides additional
details of the redevelopment activities through the use of narratives and tabledcharts, and
provides the Agency’s Five Year Low and Moderate Income Housing Fund Spending Plan.
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GOALS AND OBJECTIVES
Carlsbad Village Redevelopment Area has a colorful history reaching back to at least the 1880s
when the rail line linking San Diego and Los Angeles was constructed. The Village Area
experienced early days of glory with the construction of large hotels and spas, but by the 1980s it
was beset by problems common to many older downtowns. Buildings were in many cases
seriously dilapidated, competition from modern shopping centers had stolen away much of the
area's commercial vitality and the small lot sizes and patterns made new construction to current
City development standards difficult and in some cases impossible.
In response to the problems facing the downtown area, the Carlsbad City Council and its Housing
and Redevelopment Commission adopted the Redevelopment Plan for the Carlsbad Village
Redevelopment Project Area in accordance with the California Community Redevelopment Law
in 1981. Using the powers granted by that law, the Commission proceeded to address blighted
conditions within the Village. Codes were enforced, some properties were acquired, public
parking lots were established, overhead utilities were undergrounded, public improvements were
constructed and a host of other actions were taken with highly visible results.
After ten (10) years of effort, the Carlsbad Redevelopment Agency decided it was time to take a
step back and look at the actions that had been taken to date to eliminate blight and economically
enhance the downtown area. In 1992, the Agency initiated a comprehensive review/planning
process to refine the vision for the downtown area, further establish appropriate land use
requirements, define a supportive development scale and character, and develop a new strategy to
further guide and coordinate public and private investment within the Village Redevelopment
Area. The primary purpose of the comprehensive review was to establish a "vision" for what the
Village would look like when the term of the Redevelopment Plan expires and then develop the
"roadmap" for getting to the vision of the future downtown.
With the assistance of an eleven (11) member (with 2 alternates) Master Plan Advisory
Committee, the Carlsbad Redevelopment Agency identified goals and objectives for future
actions needed to eliminate blight and blighting influences within the Village Redevelopment
Area to the date the redevelopment plan expires in July, 2006. The Village Redevelopment Area
Master Plan Advisory Committee was made up of the following members: one (1) Planning
Commissioner; one (1) Traffic Safety Commissioner; two (2) Housing and Redevelopment
Advisory Committee members; one (1) representative of the Village Business Association; one
(1) Village Business Owner; one (1) citizen-at-large and, one (1) representative from each of the
four quadrants of the City. There were also two (2) alternates assigned to the Committee which
generally served as full voting members related to the actions taken by the Committee. The
Advisory Committee provided an excellent representation of interested parties throughout the
City and was quite effective in identifying a "vision" for the Village Redevelopment Area and
developing appropriate goals and objectives which were used to prepare the previous and this
Five Year Village Redevelopment Implementation Plan.
7
As a result of the comprehensive planning process conducted by the Village Redevelopment
Master Plan Advisory Committee, the City's Planning Commission and Design Review Board,
the City Council and the Housing and Redevelopment Commission, the following goals and
objectives were established to obtain the "vision" set forth for the Village Redevelopment Area:
GOAL ONE
0 Establish Carlsbad Village as a quality shopping, worlung and living environment.
Objectives:
Remove blighting conditions from Village.
Retain and increase uses serving Carlsbad residents.
Attract additional tourist-serving uses.
Encourage uses which are complementary to the new Transit Station to be constructed within the
Village.
Reinforce pedestrian retail continuity within the Village commercial areas.
Limit commercial development in and adjacent to residential neighborhoods.
Improve the condition and appearance of the current Village housing stock.
Increase ,the number, quality and diversity of housing units within the Village.
GOAL TWO
Q Improve Pedestrian and Vehicular Circulation in the Village Area.
Objectives:
Minimize pedestriadvehicular conflicts along major pedestrian walkways.
Provide a stronger pedestrian linkage between Carlsbad Boulevard and State Street.
Establish a quality pedestrian environment along North State Street.
Improve access to North State Street.
Establish sidewalks throughout the Village Area.
a-
@-
G-
CF
GOAL THREE
Q Stimulate Property Improvements and New Development in the Village.
Objectives:
w- Establish development standards which recognize the unique small lot conditions within the
Village.
8
w
W
c3-
w
Establish a parking district, or some other option, which allows off-site parking in public lots to
satisfy on-site parking requirements.
Increase the intensity of development within the Village.
Encourage mixed use development within the Village.
Provide greater certainty as to acceptable land uses and development intensities.
Provide assurance that future adjacent development will not adversely affect land owners'
investment.
Simplify the project application and review process. *
GOAL FOUR
0 Improve the physical appearance of the Village Area.
Objectives:
Reinforce the Village Character through site planning, architectural design and signage.
Establish commercial buildings whose scale and character are compatible with Village residential
neighborhoods.
Minimize the land area required to accommodate additional parking in the Village.
Create a sense of design unity and character while encouraging design diversity.
Require design sensitivity to adjacent development.
w
*
GF
a-
GOAL FIVE
0 Provide signage which is supportive of commercial vitality and a unique Village image.
Objectives:
Reinforce the positive image of Carlsbad Village with appropriately designed and scaled signage.
Use signage to establish a unique visual image for the Village.
Insure that signage is compatible with the architecture of each structure and its unique location.
Encourage signs which reflect the special business personality.
GF
c3- Encourage pedestrian-oriented signs. a-
G-
PROGRAMS OF ACTION AND PROJECTED EXPENDITURES
This section provides a historical perspective on past activities within the Village Redevelopment
Area and then outlines the programs, including potential projects, and estimated expenditures for
the five year period covered by this Implementation Plan. To understand the Agency's decisions
on future activities, it is important to understand some of the history of the area and previous
actions taken to eliminate blight.
When the City Council adopted the Carlsbad Village Redevelopment Plan in 1981, the area was
both depressed and depressing. The commercial vacancy rate languished at over 50 percent.
Disreputable and even illegal enterprises flourished and the downtown merchants had become
skeptical of the City's ability to help. In response to the problems facing the downtown area, the
Carlsbad Redevelopment Agency began using the powers granted under California
9
Redevelopment Law to address blighted conditions and blighting influences within the Village
Redevelopment Area.
Between 1981 and 1988, the Redevelopment Agency collected and spent over $5 million on
public improvements, code enforcement, commercial rehabilitation, property acquisition and
public parking lot construction. Initial beautification and revitalization projects included the
fountain at State and Grand, new building fronts along State Street, sidewalk medians,
coordinated street signs and landscaping and the construction of five off-street public parking lots
yielding 300 parking spaces.
In 1988, a decision was made to continue the effort to improve the downtown streets and parking
in an effort to redefine the village as a pedestrian-centered network, improve the safety and
drivability of major streets, continue to encourage the spending of resident and tourist dollars in
the area businesses and create.a self-perpetuating balance in the overall economy of the Village.
The Redevelopment Agency appropriated $8 million in bond proceeds for the comprehensive
Streetscape Project on Carlsbad Boulevard and Carlsbad Village Drive.
During the past five years, the Redevelopment Agency has expended additional funds to ensure
the long term provision of public parking lots. The property for the public parking lot located at
the corner of Roosevelt Street and Carlsbad Village Drive had been leased by the Redevelopment
Agency prior to 1995. In 1995, the Agency purchased the property for $656,250 in order to
ensure the long term availability of public parking at this location, or in the general vicinity. This
property was purchased with Redevelopment Bond Proceeds. The Agency also purchased
property to facilitate new commercial development within the Village Redevelopment Area. In
November of 1997, the Agency purchased property at 2787 State Street (previously known as the
“Bauer Lumber Building”) with Redevelopment Bond Proceeds. The intent of the purchase is to
make the property available, with other previously acquired properties, to a developer to facilitate
development of a 30,000 to 40,000 square foot specialty retail center near the Commuter Rail
Station. Redevelopment funding has also been used for various planning studies and strategy
documents as well as a Facade Improvement and Signage Financial Assistance Program.
To date, the Redevelopment Agency has completed a variety of public improvement projects and
encouraged private property improvements/enhancements which have not only eliminated blight
and blighting influences but also resulted in a renewed interest and faith in the Village
Redevelopment Area. Long-time merchants have expressed great pleasure with the influx of
tourists and shoppers and the return of residents who had abandoned the area for shopping malls.
10
Although a lot of work has been completed since 1981, there is still work needed in the Village
Redevelopment Area to redevelop and revitalize. The following conditions of blight still exist
within the Village Redevelopment Area:
1. 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.
The Village Redevelopment Project Area still contains a number of buildings, both
commercial and residential, which do not meet current public safety codes. In addition,
areas exist within the project area which have poorly maintained buildings, both
commercial and residential, necessitating a large amount of code enforcement oversight.
Other buildings are in need of seismic safety retrofittingheinforcement.
2. 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.
The Village Redevelopment Area has a number of small lots, many of irregular shapes,
which are extremely difficult to develop in a manner which meets current standards. A
fairly large number of buildings were built without on-site parking and now must rely on
public parking lots and on-street parking to meet the needs of tenants and customers.
3. 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.
There exists within the Village Redevelopment Area many cases of residential uses
adjacent to industrial or commercial uses without any kind of buffer to serve as a
transition area to the adjacent uses.
4. The existence of subdivided lots of irregular form and shape and inadequate size for
proper usefulness and development that are in multiple ownership.
The wide-spread problem of small lots of irregular form within the Village
Redevelopment area creates a development difficulty which needs continued attention.
The recently approved (6/99) Parking In-Lieu Fee Program for the Village
Redevelopment Area will provide a feasible alternative to providing parking on-site
which, upon implementation, will assist in the elimination of this problem to a certain
degree.
11
Over the next five years, the Carlsbad Redevelopment Agency will continue to meet its annual
Bond payment requirements. In addition, to address the various "Goals and Objectives'' outlined
within this Redevelopment Implementation Plan and to take actions to eliminate blight and/or
blighting influences within the project area, the Agency has identified the proposed
programs/activities and expenditures for the Village Redevelopment Area as summarized in
Table 1. A more detailed description of each proposed progradactivity and/or expenditure and
an explanation of how the action will eliminate blight is provided in the narrative section.
1. Spending Plan
PROJECT/ACTIVITY EXPENDITURE
Property Acquisition & Market Analysis for $ 13,800,000
Commercial Development projects within the
Village Redevelopment Project Area
Comprehensive study/plans for land use, design $ 255,000
standards, public improvement enhancements and
development strategies
I
SCHEDULE
2000-2004
2000-2004
Facade Improvements and Signage Design $ 50,000 2000-2004
Financial Assistance Program
Village Area Beautification Program - Street
Furniture, Planters, Etc. $ 95,000 2000-2003
Village Public Parlung Enhancement Program I $ 7,900,000 I 2000-2004
Village Public Relations Campaign I $ 50,000 I 2000-2001
Village Sidewalk Reconstruction Project or other $ 2,650,000 2000-2004 public improvements within the Village
Affordable Housing Programs & Projects, $3,900,000 2000-2004
including administration
Tax Allocation Bond Payments for previous $5,400,000 2000- 2004
Streetscape project activity
General Administration of Redevelopment Agency I $2,600,000 I 2000-2004
* The above chart lists all potential projects being considered for the Village Redevelopment
Area that would assist in eliminating blighting influences. Adequate funds will not be available
to complete all the above identified projects. Projects will be undertaken on a priority basis
based on feasibility and property availability.
12
The following provides a narrative of each proposed program or potential project as highlighted
in Table 1, including how it addresses the issue of blight.
A. Property Accluisition and Market Analysis for Commercial Development:
Over the next five years, the Carlsbad Redevelopment Agency will encourage the development
of one or more commercial projects which would eliminate existing blighting influences within
the Village Redevelopment Area and/or encourage the elimination of blight on other parcels. The
Agency has identified two primary areas to be considered for these commercial projects. They are
as follows:
0 Specialty Commercial Center near Village Commuter Rail Station (Grand Avenue and
State Street). The uses at a new Specialty Commercial Project near the Commuter Rail
Station could include a mix of retail shops, restaurants, offices and residential units as
well as a Village Green gathering place for people. By encouraging new commercial
development within the area of the new Station, the Redevelopment Agency hopes to
motivate other property owners within this area, primarily the north State Street area, to
rehabilitate deterioratinghnsightly buildings. The north State Street area has been
identified as an area which requires focused "clean up" attention from the Redevelopment
Agency. In conjunction with this proposed commercial development facilitation, the
Redevelopment Agency will work with the North County Transit Development Board to
provide additional public parlung (i.e., a parking structure) at the site of the Village
Commuter Rail Station.
Commercial Center at Roosevelt Street and Carlsbad Village Drive. The Carlsbad
Redevelopment Agency intends to move forward with plans to facilitate the development
of a commercial project at or near the intersection of Roosevelt Street and Carlsbad
Village Drive. This area has great potential for development. Several properties within
this area are currently underutilized. Without some assistance from the Agency,
development will most likely not occur due to an inability to provide adequate parking
and the small, irregular shape of some of the lots. The concept for a proposed project
within' this area includes a mix of uses to include retail, restaurants and/or other
commercial development which may also provide for a public parking lot (perhaps a
parking structure).
B. Comprehensive study/plans for land use, design standards, enhanced public improvements
and development strategies:
Over the next five years, the Redevelopment Agency will continue its efforts to develop, or assist
in the development of studies and plans which identify appropriate land use, design standards,
enhanced public improvements and strategies for the entire Village Redevelopment Project Area
and/or sections within the project area:
13
e The Agency will assist with a report and public relations on the formation of a Parking
and Business Improvement District (PBID) within the Village Redevelopment Area.
e A study will be completed on street lighting within the Village and surrounding areas.
The results of the study will be used to determine the locations for additional or enhanced
street lighting.
e A study will be completed on the potential re-uses for the property known as the Oak
Street Yard which currently houses staff of the City’s Public Works Department. It is
anticipated that within 3 to 4 years, the Public Works Department will no longer require
offices at the Oak Street location. Because this property is located within the Village
Redevelopment Area, new uses for the property should be consistent with the Village
Master Plan. Therefore, redevelopment funds will be used to prepare a feasibility study of
potential uses for the site. This study will be combined with another project which will
result in adoption of a Master Plan (for appropriate land uses) for the Transportation
Corridor within the Village Area.
0 A study will be completed to identify those streets in the Village Redevelopment Area
where existing on-street parallel parking may be converted to angled parking in order to
increase the amount of public parking spaces and provide traffic calming measures.
e A comprehensive right-of-way analysis will be completed to determine how to maximize
on-street parking in the Village Redevelopment Area. The analysis will identify existing
right-of-way and potential right-of-way to be obtained from future development in order
to maximize on-street parking and enhanced landscaping.
C. Facade Improvement and Signage Financial Assistance Prosam:
Over the next five (5) years, the Redevelopment Agency will continue to encourage
propertyhusiness owners within the Village Redevelopment Project Area to improve their
properties, specifically building facades, and replace non-conforming and/or outdated building
signage:
e A Facade Improvement and Signage Financial Assistance Program will be funded
through the Carlsbad Redevelopment Agency to eliminate blighting conditions created
through deteriorated buildings and outdatedinappropriate signage within the project area.
The Agency will provide matching funds for facade improvements and new signage,
including design costs.
14
D. Village Area Beautification Program - Street Furniture, Planters, Etc.:
Over the next five (5) years, the Redevelopment Agency will continue its efforts to beautify the
Village Redevelopment Area by:
e The Redevelopment Agency will enhance the Village Area through the installation of
additional street furniture including benches, trash cans, trees, planters, and banners or
other decorative features, as well as provide for improved maintenance activities.
E. Village Public Parking Enhancement Program:
Over the next five (5) years, the Redevelopment Agency will continue its efforts to address
parking issues within the Village Redevelopment Area:
e The Redevelopment Agency will provide funding to address impediments to use of
existing public parking lots and/or addition of public parking as determined to be
appropriate. To increase utilization of existing public parking lots, it may be necessary to
make changes such as additional lighting, reconfiguration, etc. If the opportunity presents
itself, the Agency will purchase property for future parking, which may include surface
parlung or the construction of a multi-level parking structure within a quarter mile radius
of the Village Commuter Rail Station. This program was developed as part of the Village
Parking Program that was approved by the Housing and Redevelopment Commission in
June, 1999.
F. Village Public Relations Campaign:
Over the next one to two years of this Plan, the Redevelopment Agency will implement a public
relations campaign to encourage pedestrian activity within the Village Redevelopment Area.
Funding has been appropriated to support a program to inform the public as to the locations and
number of public parking facilities located within the Village Area, and to encourage the public
to get out of their cars and “walk about” the Village. This program is identified in the Village
Parking Program which was approved by the Housing and Redevelopment Commission in June,
1999.
G. Village Sidewalk Reconstruction Proiect or Other Public Improvements:
Over the next five years, the Redevelopment Agency will continue its efforts to improve the
Village Redevelopment Area through the construction, reconstruction or installation of additional
public improvements within the Village Area. These projects may include one or more of the
following projects:
15
0
Street Improvements
Enhanced entryway treatments
Village Area Sidewalk and Curb Reconstruction
Installation of additional landscape medians and/or landscape planters
Miscellaneous Infrastructure Enhancements, including enhanced streetscape improvements
H. Affordable Housing Programs and Projects, Including Administration:
Over the next five years, the Redevelopment Agency will continue to assist for-profit and/or non-
profit affordable housing developers to provide affordable housing for low and moderate income
households both inside and outside the Village Redevelopment Area. For the first two to three
years, the Agency will use Low and Moderate Income Housing Funds (LMIHF) to repay a loan
with interest (approximately $450,000) provided by the City of Carlsbad’s General Fund for the
acquisition of an existing Senior Apartment Complex (75 units) for the purpose of providing
affordable housing for very low and extremely low income senior households.
I. Repayment of Tax Allocation Bonds Issues for Previous Proiect(s):
The Redevelopment Agency will continue to make annual payments on the Tax Allocation
Bonds which were issued originally in 1988, and refinanced in 1993, for the purposes of
constructing street improvements, providing public parking and construction of a new senior
center to benefit the Village Redevelopment Area. The street improvements resulted in improved
circulation within the Village Redevelopment Area, greatly improved drainage and aesthetically
enhanced the two major thoroughfares within the redevelopment project area. The
Redevelopment Agency also hopes that the enhancement of Carlsbad Village Drive and Carlsbad
Boulevard will encourage new businesses to locate within the Village. The public parking lots
were needed due to inadequate parking on many privately-owned retail sites within the core
downtown area of the Village. With refinancing of the bonds in 1993, additional bond proceeds
were generated which have been used to provide affordable housing, acquire property to facilitate
commercial development, initiate a financial assistance program for facade and signage
improvements and to complete various studies and strategies to benefit the Village
Redevelopment Area.
J. General Administration of Agency (Housing & Redevelopment Department):
Over the next five years, the Redevelopment Agency will continue to reimburse the City of
Carlsbad for costs of Housing and Redevelopment Department Staff working on projects
outlined within this Implementation Plan and for general administration expenses related to this
plan and the Village Redevelopment Plan.
16
AFFORDABLE HOUSING PROGRAMS
In addition to the programs described above, the Agency's Implementation Plan must also
describe how the requirements of Sections 33334.2, 33334.4, 33334.6 and 33413 will be
implemented. These sections of the Health and Safety Code refer to the Agency's responsibility
to increase, improve and preserve the community's supply of low and moderate income housing
at an affordable housing cost as defined in Section 50093, and a very low income household as
defined in Section 50 105, and the Agency's "inclusionary housing" obligations pursuant to Health
and Safety Code Section 33413(b).
As described in Section 33490 (2), the Agency's Implementation Plan shall contain an annual
housing program, including the amount available in the Low and Moderate Income Housing
Fund and the estimated amounts which will be deposited during each of the next five years, and
estimates of the number of new and rehabilitated units to be assisted by the Agency with Low
and Moderate Income Housing Funds during each of the next five years.
In addition, the Implementation Plan is to include the Agency's "inclusionary housing" plan, the
requirement for which was first set forth in Assembly Bill 315 and is now incorporated into
Health and Safety Code Section 33413(b)(4). The "inclusionary housing" requirements are as
follows: 1) at least 30% of all new and substantially rehabilitated housing units developed by the
Agency shall be available at affordable housing cost to persons and families of low or moderate
income, of which not less than 50% of these units are to be available at affordable housing cost
to very low income households; and 2) at least 15% of all new and substantially rehabilitated
housing units developed within the Redevelopment Project Area by public or private
developers other than the Agency shall be available at affordable housing cost to persons and
families of low or moderate income, of which not less than 40% of these units are to be available
at affordable housing cost to very low income households. Generally, the Redevelopment Agency
will not be involved in the development of affordable housing. However, if the Agency does
become involved in the development or direct provision of affordable housing, a minimum of
50% of the units will be affordable to very low income households. The 15% requirement applies
to all housing developed in the Project Area (both new construction and substantial
rehabilitation), and is addressed in this Section.
This section highlights 1) the need for housing within the community; 2) the amount of funds
available within, and expected to be deposited to, the Agency's Low and Moderate Income
Housing Set-Aside Fund over the next five years of this Implementation Plan; and 3) the
Agency's annual plan for expending the funds and producing affordable housing.
Need for Housing;:
The Regional Housing Needs Statement for San Diego County reflects a greatly increased need
for housing opportunities in the low and very low income ranges. The statement also indicates
that Carlsbad's share of low income housing should be 38% of its new development within the
17
next five years. Due to the future growth of industrial, retail, office and service jobs in Carlsbad,
the demand for housing for these traditionally lower-wage earner occupations will increase. The
Regional Housing Needs Statement indicates that the City of Carlsbad will need to provide 2,361
housing units for lower income households within the period of this Implementation Plan; 1,304
of these units need to be affordable to very low income households.
In addition, a total of 1,430 new housing units affordable to moderate income households need to
be produced within the period of this Implementation Plan; this represents 23% of the total need
for affordable housing within Carlsbad.
In accordance with State Law, a very low income household is one whose gross household
income does not exceed 50% of the median income for San Diego County, which as of the date
of this plan was $26,250 for a family of four. A low income household is one whose gross
household income is at least 50% but less than 80% of the median income for San Diego County.
A moderate income household is one whose gross household income is at least 120% of the
median income for San Diego County.
Low and Moderate Income Housing Set-Aside Funds:
The Agency has appropriated 20% of its tax increment to the Low and Moderate Income Housing
Set-Aside Fund since 1982. The total amount of unencumbered funds available as of June 30,
1999 was approximately $1.6 million. However, these funds were expended in full as of October
1, 1999 for acquisition of property. Therefore, expenditures from the Low and Moderate Income
Housing Set-Aside beginning January 1, 2000 will be dependent upon new deposits to the fund
during 1999-2000 and future years.
Funds deposited into the Low and Moderate Income Housing Set-Aside Fund may be spent on a
variety of activities. In general, the funds may be used to improve or increase the supply of
housing at a cost affordable to persons of low and/or moderate income. Specifically, the funds
may be used to 1) acquire land or building sites; 2) improve land or building sites with on-site
or off-site infrastructure improvements which are directly and specifically related to the creation
of low and moderate income housing; 3) "write down" land to private or public persons or
entities; 4) rehabilitate housing; 5) design, construct, or finance housing; 6) acquire, existing
housing; 7) provide subsidies to, or for the benefit of, persons and families or low or moderate
income; andor 8) develop plans, pay principal and interest on bonds, loans, advances or other
indebtedness, or pay financing or carrying charges.
The funds may be spent inside or outside the Village Redevelopment Project Area. The Agency,
however, may use these funds outside the Redevelopment Area only when the Housing and
Redevelopment Commission and City Council find that the proposed use of funds will be of
benefit to the redevelopment project area, per Health and Safety Code Section 33334.2(g).
Particularly because of the largely built-out nature of the redevelopment area, the Agency does
intend to expend Low and Moderate Income Housing Set-Aside Funds outside the Village
18
Redevelopment Project Area as deemed appropriate by the Commission and Council.
Revenues:
Beg. Balance
Set- Aside
Interest &
Other Funds
Expenses:
Admin.
Construction
Acquisition
&/or Rehab
Total
Total
Based on the demonstrated need to provide housing affordable to lower income households in
Carlsbad, the Agency has decided to focus its efforts and resources, specifically the Low and
Moderate Income Housing Funds, on producing new housing primarily for lower income
households. The Agency believes that the private housing market should be able to accommodate
most of the affordable housing needs of the moderate income households with very little or no
financial assistance from the Agency.
1999-2000 2000-2001
$1,600,245 $180,245
$303,750 $3 12,860
$180,000 $130,000
$2,083,995 $623,105
$1 19,895 $120,000
$0 $503,105
$1,783,855 $0
$1.903.750 $623.105
It is the policy of the Agency to provide assistance to housing projects in a manner that
maximizes the level and term of affordability. The Agency will require a minimum affordability
term of fifty-five (55) years on all assisted projects.
$130,000
$45 2,245
$120,000
$332,245
$0
Table 2 below outlines the five year (2000-2004) expenditure plan for the Village
Redevelopment Project Area's Low and Moderate Income Housing Set-Aside Fund. The
"revenue" section includes the balance of available funds (as of June 30, 1999) and funds
projected to be received on an annual basis over the five year period of this Plan. The "expenses"
section outlines the categories of expenditures and the amount of funds to be expended within
each category on an annual basis.
$130,000 $130,000
$46 1,9 10 $47 1,860
$120,000 $120,000
$341,9 10 $35 1,860
$0 $0
$452,245
$0
$461,9 10 $47 1,860
$0 $0
$33 1,9 10 $341,860
Ending Bal.
Total Units
.I I .,
$180,245 I $0
213 I 50 30 I 30 30
Total
$1,600,245
$1,612,625
$700,000
$3,912,870
$599,895
$1,529,120
$1,783,855
$3,912,870
$0
353
19
Excess Surplus Funds:
Section 33334.10 of the Health and Safety Code requires the Carlsbad Redevelopment Agency to
prepare a separate accounting of "excess surplus" within the Low and Moderate Income Housing
Set-Aside Fund. "Excess Surplus" is defined as any unexpended and unencumbered amount that
exceeds the greater of either $1,000,000 or the aggregate (total) amount deposited into the Low
and Moderate Income Housing Fund pursuant to Sections 33334.2 and 33334.6 of the Health and
Safety Code during the Agency's preceding four (4) fiscal years.
Based on a July 1, 1999 memorandum from the State Department of Housing and Community
Development, legal interpretations of Health and Safety Code Section 33334.12 have determined
that "excess surplus" occurs at the beginning of a reporting year (based on final unencumbered
and adjusted balances), not at the end of a reporting year. Excess surplus, therefore, is calculated
using the unencumbered (adjusted) balance at the beginning of the "reporting year" (immediately
after the four year Low and Moderate Income Housing Fund aggregation period) rather than the
final unencumbered (adjusted) balance at the end of the full fiscal year after the four year
aggregation period. The beginning unencumbered (adjusted) balance then is compared to the
greater of either $ 1 million or the Low and Moderate Income Housing Fund aggregation of the
previous four fiscal years.
In determining excess surplus for the period ending June 30, 1999 and for preparation of this
Implementation Plan, the fiscal years to be considered are 1994-95, 1995-96, 1996-97 and 1997-
98. The amount of excess surplus is calculated based on the aggregate sum of those fiscal years
or $1,000,000, whichever is greater. If excess surplus exists, or is expected to exist, the
Redevelopment Agency must prepare an appropriate course of action to eliminate the excess in
the following fiscal year. In effect, during the first year that excess surplus exists, an agency has
one year to either expend, encumber, or transfer the funds to a local housing authority. If these
events do not occur, the Redevelopment Agency has two more years to either expend or
encumber the funds, or be assessed severe statutory penalties. For example, an agency having
excess surplus funds on July 1, 1995 had until July 1, 1996 to take initial steps to deplete the
excess or transfer the money to the housing authority. If this did not occur, the Agency had until
July 1, 1998 to expend or encumber the funds. Beginning on July 1, 1998, the statutory penalties
would apply.
As indicated in Table 3 below, the Carlsbad Redevelopment Agency had no "excess surplus" as
of July 1, 1999 based on interpretation of the related state regulations. It is important to note that
there was a Low and Moderate Income Housing Fund balance of approximately $1.6 million at
the end of fiscal year 1998-99. The entire balance in the fund, however, was fully disbursed as of
October 1, 1999 as a result of acquisition of an existing Senior Apartment Project (75 units) for
affordable housing purposes.
20
Fiscal Year LMIHF 20% Deposits Unencumbered &
(per fiscal year) Adjusted Balance in
LMIHF as of 6/30/98
1994-95 $289,739
1995-96 $2923 3 8
1996-97 $285,634
1997-98 $302,097
Total $1,170,008
$1.169.121
Housing Production Plan:
Excess Surplus
Unencumbered Balance is
less than the aggregate
total amount deposited
into LMIHF during
previous 4 fiscal years.
$0
Following is a general list of program which the Carlsbad Redevelopment Agency expects to
either begin or continue within the next five (5) years.
e The Redevelopment Agency has participated and will continue to participate with private
sector for-profit and non-profit housing developers to develop a mix of ownership and
rental affordable housing in the project area as well as citywide. Agreements between the
developers and the City and Agency for development of affordable housing units will
restrict the affordability of rents or sales prices to specified income levels for periods of a
least fifty-five (55) years.
As appropriate and where feasible, the Agency will either acquire and rehabilitate, or
participate in the acquisition and rehabilitation, of apartment complexes which are
blighted and/or can provide affordable housing opportunities for low and/or moderate
income households. Any agency participation in an acquisition and/or rehabilitation
project will result in covenants to ensure the long term maintenance and affordability of
the designated affordable housing units for a minimum of fifty-five (55) years.
As stated above, as a general rule, the Redevelopment Agency does not intend to assume the role
of developer in producing or providing affordable housing units. The Agency intends to primarily
use the Low and Moderate Income Housing Set-Aside Funds and other funds deposited to the
account over the next five years to assist in financing private development projects which will
result in additional affordable housing opportunities for low and moderate income households,
with emphasis of the Agency's assistance to be placed on lower income affordable housing units.
With that said, if the Agency finds that it would be appropriate and is deemed necessary for the
Agency to acquire property and/or existing units to facilitate the development or provision of
affordable housing, this action will be taken as well.
The following provides a breakdown of activities related to the production of affordable housing
units on an annual basis over the five year period of the Implementation Plan.
21
Annual Production Plans:
1999- 2000- 2001- 2002- 2003-
Program 2000 2001 2002 2003 2004
New Construction 138 25 30 30 30
Acquisition &/or
Rehabilitation 75 25 0 0 0
Total 213 50 30 30 30
Table 4 below outlines the number of units to be produced with assistance from the Agency
through new construction and/or acquisitiodrehabilitation. Due to the substantial need for new
affordable housing units within the City of Carlsbad, the Redevelopment Agency intends to focus
the expenditure of its Low and Moderate Income Housing Fund specifically on projects which
result in the creation of new affordable housing opportunities. Other funding sources, such as the
City’s Housing Trust Fund, may also be used for the construction of affordable housing projects
and/or the implementation of other affordable housing programs such as rental assistance and/or
first-time homebuyer assistance.
Total
253
100
353
1999-2000:
The Agency has previously executed an agreement to allow for the provision of a loan from the
Agency’s Low and Moderate Income Housing Fund to the MAAC Organization (non-profit
housing agency) for the construction of a new affordable housing project currently known as the
Laurel Tree Affordable Apartments. The apartment project is located outside the Village
Redevelopment Area and will provide for 138 units affordable to households with very low
incomes. Construction on the project is anticipated to be complete as of Spring, 2000.
In 1999, the Agency used Low and Moderate Income Housing Funds to acquire a 75 unit Senior
Apartment Project. The Apartment Project was purchased to allow for stabilization of the project
and to create affordable housing opportunities for very low and extremely low income senior
households. Rents were reduced to a rate which is considered to be affordable to very low and
extremely low income households. In 2000-2001, it is the intent of the Redevelopment Agency to
sell the apartment project to a private affordable housing developerhuilder with a requirement to
retain the affordable rents for no less than fifty-five (55) years. Upon sale of the property, a
portion of the funds utilized to purchase the property will be repaid to the Agency for use on
other projects.
22
It is anticipated that the Agency will expend approximately $1.9 million in program year 1999-
2000 to produce, or make available, approximately 213 new units of affordable housing both
inside and outside the Redevelopment Project Area.
2000-200 1 :
Although no sites have yet been selected, the Agency intends to assist a private
developer/property owner, or developers/owners, with 1) the acquisition and rehabilitation of
multi-family andor single family units within the Village Project Area or within close proximity
to the Village, or 2) assist with the purchase of vacant property for development of an affordable
housing project inside or outside the Village Redevelopment Area. This action is intended to
result in the provision of affordable housing for at least fifty (50) low income households.
It is anticipated that the Agency will expend over $623,105 in program year 2000-2001 to
produce, or make available, approximately 50 additional new units of affordable housing either
inside or outside the Redevelopment Project Area.
2001-2002:
Although a specific project has not yet been identified, the Agency intends to participate in the
financing of an additional new construction project, or projects, which would produce at least
thirty (30) additional new housing units either inside or outside the Village Redevelopment
Project Area.
It is anticipated that the Agency will expend over $450,000 in 2001-2002 to produce, or make
available, approximately 30 additional new units of affordable housing either inside or outside
the Redevelopment Project Area.
2002-2003:
Although a specific project has not yet been identified, the Agency intends to participate in the
financing of an additional new construction project, or projects, which would produce at least
thirty (30) additional new housing units either inside or outside the Village Redevelopment
Project Area.
It is anticipated that the Agency will expend approximately $460,000 in 2002-2003 to produce,
or make available, approximately 30 additional new units of affordable housing either inside or
outside the Redevelopment Project Area.
23
Although a specific project has not yet been identified, the Agency intends to participate in the
financing of an additional new construction project, or projects, which would produce at least
thirty (30) additional new housing units either inside or outside the Village Redevelopment
Project Area.
It is anticipated that the Agency will expend approximately $470,000 in 2003-2004 to produce,
or make available, approximately thirty (30) additional new units of affordable housing either
inside or outside the Redevelopment Project Area.
Five Year Total:
In total, the Agency expects to expend approximately $3.9 million in Low and Moderate Income
Housing Set-Aside Funds by the end of year 2004 to produce, or make available, approximately
353 new units of housing affordable to low and moderate income housing.
INCLUSIONARY AND REPLACEMENT HOUSING
Inclusionarv Rules:
Health and Safety Code Section 33413(b)(4) requires that each redevelopment agency adopt a
plan to comply with the requirements of the "inclusionary rule". This rule requires that a fixed
percentage of all housing constructed within a redevelopment area to be affordable to low and
moderate income persons and families.
A "30%" Inclusionary Housing Requirement applies to all housing units developed within the
Village Redevelopment Project Area by the Agency without use of the Low and Moderate
Income Housing Funds. This means that if the Agency serves as the builderkontractor for a
housing project within the Village Area, thirty percent (30%) of the total units produced must,
and will, be affordable to low and moderate income households and fifty percent (50%) of these
restricted units must be affordable to very low income households. If the Agency uses Low and
Moderate Income Housing Funds to assist in financing a housing project, the percentage of
affordability-restricted units must be equal to, or exceed, the percentage of Low and Moderate
Income Housing Funds invested within the project. For example, if Low and Moderate Income
Housing funds account for 50% of the revenue sources used to finance a 100 unit housing
project, then 50 of the units must be affordable to low and moderate income persons; the funds
can only be used to finance those 50 units which, in effect, results in a "100%" inclusionary rule.
24
Private entities and/or non-profit organizations will be assuming the primary role of housing
developer both inside and outside the Redevelopment Project Area. Per Redevelopment Law, a
“1 5%” Inclusionary Housing Requirement applies to private development within the
Redevelopment Project Area. The requirement is that at least 15% of the units constructed and/or
rehabilitated must be affordable to low or moderate income persons, of which not less than 40%
(or 6% of the total units) must be affordable to very low income households.
For example, if private entities construct a total of 100 (non-restricted) units within the
Redevelopment Project Area, a total of 15 units must be constructed with affordability
restrictions - 9 of the units must be affordable to low or moderate income households and 6 must
be affordable to very low income households.
Satisfaction of Inclusionarv Reauirements:
For market rate units (non-restricted) produced in the Village Redevelopment Project Area prior
to July 1, 1994, the Agency assumed the responsibility for providing units to meet the
inclusionary housing requirements. After July 1, 1994, the private developer of market rate units
within the Village Redevelopment Area became responsible for either producing the inclusionary
units within their project, participating in a “combined” project approved by the City
Council/Housing and Redevelopment Commisison, or for payment of an in-lieu or impact fee to
be used specifically for the purposes of producing affordable housing units. When necessary and
appropriate, the Redevelopment Agency will provide financial assistance to the private entities,
or non-profit organizations, for the purposes of meeting the inclusionary housing requirements.
Per Redevelopment Law, in order for residential units to be counted for purposes of compliance
with the inclusionary housing requirements outlined above, the units must meet the criteria
outlined below. The units must be:
0 newly constructed or rehabilitated;
0 located within the redevelopment project area, or on a two-for-one basis if located outside
the project area;
0 remain available at affordable housing cost to persons and families of low or moderate
income or very low income for the longest feasible time, but not less than the period of
land use controls in the redevelopment plan; and,
0 the restrictions must be recorded against the property as covenants running with the land.
Prior Years: There were no residential units developed or proposed for development by private
entities or the Agency during the period from July 1, 1995 to June 30, 1999. Therefore, there was
no inclusionary housing obligation created within the Village Redevelopment Area for those
years.
25
The inclusionary housing obligation also applies to "substantial rehabilitation" of housing units
within the Village Redevelopment Area, as defined in Section 33413(b)(2)(A)(iv) of the Health
and Safety Code. However, a review of City records indicate that there has been no substantial
rehabilitation completed by the Agency or the private sector within the Village Redevelopment
Area which would result in the application of the inclusionary housing requirement.
Consequently, the Agency has no goal to produce new inclusionary housing units related to
substantial rehabilitation activities in previous years.
Total I
Future Years: Table 5 provides a summary of the number of housing units the Agency believes
will be constructed, or rehabilitated, over the next five years of this Implementation Plan. The
housing units identified to be constructed, or rehabilitated, within the Village Redevelopment
Area include both private and public development with or without Agency Assistance. Those
units indicated to be constructed outside the Village Redevelopment Area are only those which
have received, or anticipated to receive, approval of .Agency assistance as of the date of this
report. Table 5 also indicates the inclusionary requirement, if any, and the estimated number of
units to be provided at each income level.
353
'able 5. NEW HOUSING UNIT DEVELOPMENT (estimated for 2000-2004)
90 I
Location of
Units
0 I 42
Within the
Village Area;
no specific
sites known at
this time.
0
Outside the
Village:
* Laurel Tree
Site
* Tyler Court
* One or more
unknown
sites
3
No. of Units to
be Produced
' Rehabilitated
80
273
Low
Income
30
60
Mod
Income
0
0
Other
Income
42
0
Inclusionary
Requirement
15% or 7.5
units lowlmod
affordable; 3
units to
affordable to
very low.
No require-
ment per Red.
Law. % of
affordable
units wlin
project must
equal % of
UM Funds
wlin project.
As indicated in Table 5, the Agency intends to participate in the construction of, or rehabilitation
of, approximately 353 affordable housing units both inside and outside the Village
Redevelopment Area by the end of calendar year 2004. It is anticipated that no more than 80
units of housing will be constructed within the Village Redevelopment Area. The remaining units
(approximately 273 units) are anticipated to be constructed outside the Village Redevelopment
26
Area with some type of financial assistance from the Redevelopment Agency based on benefit to
the area. As stated previously, as a general rule, the Agency does not intend to develop housing
on its own. The Agency will assist private developers either inside or outside the Redevelopment
Project Area.
Replacement Rules:
Health and Safety Code Sections 33413.5 and 33334.5 require replacement housing plans for
compliance with the "replacement rule" which requires the Agency to replace low and moderate
income housing which is removed as a result of a redevelopment project.
Whenever dwelling units which house persons and families of low or moderate income are
destroyed or removed from the low and moderate income housing market as part of a
redevelopment project subject to a written agreement with the agency, the Redevelopment
Agency is required to ensure that an equal number of replacement dwelling units are developed
within four (4) years of the removal of the dwelling units.
During the period of this Implementation Plan, the Agency does not intend to participate in any
projects within the Village Redevelopment Area which will result in a loss of housing affordable
to low or moderate income households. Therefore, the Agency has no need to prepare a "Housing
Replacement Plan" at this time related to any project outlined within this Implementation Plan. If
any action of the Redevelopment Agency does propose to eliminate low and/or moderate income
housing in the future, the Agency will prepare the appropriate Housing Replacement Plan prior to
any action be taken which allows the loss of that housing.
27
CONCLUSION
The Carlsbad Village Redevelopment Implementation Plan, as detailed above, describes the
programs which are proposed to be undertaken during the next five (5) years in order to assist in
the alleviation, or elimination, of blighting conditions existing in the Village Redevelopment
Project Area and/or to increase the community's supply of affordable housing. Redevelopment is,
however, a very fluid process subject to a myriad of changing issues and the forces of market
dynamics. The Plan is subject to periodic public review. The Agency may review and amend the
plan, goals, objectives and programs, and expenditures (following a noticed public hearing) at
any time conditions require such an amendment.
PUBLIC REVIEW SUMMARY FOR ORIGINAL PLAN ADOPTION
The Carlsbad Redevelopment Agency notified the general public on November 13, 1999,
November 24, 1999 and December 3, 1999 that the Village Implementation Plan was available
for review and comments through December 14, 1999. The Housing and Redevelopment
Commission held a public hearing on December 14, 1999 in the City Council Chambers located
at 1200 Carlsbad Village Drive to review, discuss and accept public comments on this
Implementation Plan.
28
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
This space is for the County Clerk's Filing Stamp
7 STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident of
the County aforesaid: I am over the age of eighteen
years and not a party to or interested in the above-
entitled matter.
printer of
I am the principal clerk of the Proof of Publication of
North County Times
Formerly known as the Blade-Citizen and The
Times-Advocate and which newspapers have been
adjudicated newspapers of general circulation by
the Superior Court of the County of San Diego,
State of California, for the City of Oceanside and
the City of Escondido, Court Decree number
171349, for the County of San Diego, that the
notice of which the annexed is a printed copy (set
in type not smaller than nonpariel), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to-wit:
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at SAN MARCOS, California
This 'z ?*?Day of November, 2003
NOTICE OF PUBLIC HEARING
CARLSBAD REDEVELOPMENT AGENCY AMENDMENT TO FIVEYEAR IMPLEMENTATION PLAN FOR 2000-2004
he Carlsbad Redevelopment P"y has prepared a pro osed unendment to its five ear Re evelopment Im lementagon 'lan for the eriod be&g January 1 2dand ending kcember 3f 2004. e Plan contains the followlng informa- ion for the Village Redevelopment Area:
Spedflc Goals and Ob ectives for the next Qve years: Specific rograms. inciudin potential projects. and
An explana on of how the oals ob ectives. programs
The number of housing units to be rehabilitated.
%lam for use ot the annual depos& to the LOW and
estimatd expnditures for &e next five years:
and expenditures will elirnkate bli&
Moderate Income Housing Fund.
rice-restricted assisted or destro ed. and
questions or comments re arding the Amendment to the Im bementation Plan may be $retted to mank Boensch.
PUBLISH DATE: FRIDAY, NOVEMBER 2 1.200%
anagement Analyst, at (760) 434-2810.
Signature
NORTH COUNTY TIMES
Legal Advertising
NOTICE OF PUBLIC HEARING
CARLSBAD REDEVELOPMENT AGENCY
AMENDMENT TO FIVE YEAR IMPLEMENTATION PLAN FOR 2000-2004
The Carlsbad Redevelopment Agency has prepared a proposed amendment to its five year
Redevelopment Implementation Plan for the period beginning January 1,2000 and ending
December 3 1,2004. The Plan contains the following information for the Village Redevelopment
Area:
0
0
Specific Goals and Objectives for the next five years;
Specific programs, including potential projects, and estimated expenditures for the next five
years;
An explanation of how the goals, objectives, programs and expenditures will eliminate
blight;
The number of housing units to be rehabilitated, price-restricted, assisted or destroyed; and
Plans for use of the annual deposits to the Low and Moderate Income Housing Fund.
The proposed amendment to the 2000-2004 Redevelopment Implementation Plan would expand
the list of projects which might be undertaken while the Plan is in effect. The amended Plan in
draft form is available for public review and may be obtained for review from the Carlsbad
Housing and Redevelopment Department located at 2965 Roosevelt Street, Suite B, Carlsbad,
California. Also, copies of the plan will be available at the Carlsbad Boys and Girls Club (3 1 15
Roosevelt Street), Carlsbad Village Business Association (2579 B State Street) and Harding
Community Center (3096 Harding Street).
A public hearing is scheduled before the Carlsbad Housing and Redevelopment Commission on
Tuesday, December 2,2003 at 6:OOpm in the City Council Chambers located at 1200 Carlsbad
Village Drive to allow the public an opportunity to comment on the proposed 2000-2004
Redevelopment Implementation Plan. The public is encouraged to attend the Housing and
Redevelopment Commission meeting on December 2,2003 and comment on the draft
Implementation Plan.
Questions or comments regarding the Amendment to the Implementation Plan may be directed to
Frank Boensch, Management Analyst, at (760) 434-2810.
PUBLISH DATE: FRIDAY, NOVEMBER 2 1,2003.
Village Redevelopment Implementation Plan AmendmentHousing and Redevelopment CommissionDecember 2, 2003
History!Village Redevelopment Plan adopted –July 7, 1981!25-year duration!Expiration date – July 7, 2007
Actions Taken Tonight!Extended Redevelopment Plan by 1 yr.!Established a Repayment Schedule for existing debt.!Entered into Reimbursement Agreement to carry out one or more additional projects.
Reimbursement Agreement!Redevelopment Area can support additional debt of $14.4 million.!January 1, 2004 - Deadline to incur additional debt. !Money to be used for public projects in the Village Area. !City to advance funds, which will be repaid with future tax increment.!Fully repaid by July 2017.
Repayment Schedule!Schedule for repayment of existing $12.8 million debt.!New debt to be repaid from 2004-2017 ($14.4 million) !Existing or “old” debt to be repaid from 2017-2032 ($12.8 million).
Potential RDA Projects!Mixed-use project w/ Village Green & parking @ State & Grand!Mixed-use project w/ parking on Roosevelt St.!Public parking structure!Streetscape improvements to N. State St.!Streetscape improvements between Grand & Carlsbad Village Dr.!Conversion of parallel to angled parking!Right-of-way analysis and conceptual streetscape plan!Misc. street improvements!Enhanced entryway treatment
Recommended Action!Adopt Resolution No. 375 amending the Village Redevelopment Implementation Plan for 2000-2004 to give the Commission/Council the opportunity to carry out additional projects in the Village Area.