090704 Jt PH Adotpion Amend Merger SA Redvlp Proj Areas EXHIBIT 2

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Five -Year Implementation Plan Amended February 2003 Page 3 On October 6, 1993, Governor Pete Wilson signed Assembly Bill 1290 (Isenberg). AB 1290, enacted as Chapter 942, took effect January 1, 1994 and was sponsored by the California Redevelopment Association (CRA). Entitled the Community Redevelopment Law Reform Act of 1993, the bill included the most sweeping changes in the Community Redevelopment Law Reform Act in years. The changes affected both existing project areas and new plan adoptions, and included modifications to the definition of blight, the end of fiscal review committees, time limits on all project areas, the repeal of authority to receive sales tax revenues, and a strong penalty provision for agencies which do not spend their housing funds. The bill also included specific authority for commercial rehabilitation loans and assistance to manufacturing facilities, and provided options for agencies in meeting their 7 inclusionary housing requirement. One of the provisions of the bill is the requirement that each agency adopt a five - year implementation plan, which provides documentation for the link between the elimination of blight and the proposed actions of the redevelopment agency. For redevelopment plans adopted on or after January 1, 1994, AB 1290 requires a agencies to include an implementation plan in the report submitted by the agency to the legislative body prior to adoption of the redevelopment plan (Section 33352; SEC 12). Each agency that has adopted a redevelopment plan prior to December 31, a 1993 was required to adopt, after a public hearing, an implementation plan on or -. before December 31, 1994 (Section 33490(a); SEC 30). This implementation plan is the second five year plan completed by the agency and must be adopted before December 31, 1999. In addition, a public hearing on the implementation plan is required to be held at least once during the five -year period. Amendments to the plan may be made at this time, or any time after a noticed public hearing. The implementation plan must describe specific goals, objectives, and programs of the agency, including programs, potential projects, and estimated expenditures to be made over the next five years of the plan, and a description of how these goals, objectives, programs, and expenditures will assist in the alleviation of blight. The implementation plan required of agencies with existing project areas must also describe how the agency will implement the requirement to increase, improve, and 4 preserve low- and moderate - income housing and the indusionary and replacement housing requirements. This section of the plan must contain an annual housing program and specific plans for the estimated expenditure of monies from the Housing Fund. If the implementation plan contains a project that will result in the destruction of low- or moderate - income housing, the implementation plan must identify proposed locations suitable for the replacement dwelling units. The implementation plan also has implications for the disposition of agency property and for the agency's funding of public improvements. When the agency conveys property acquired in whole or in part with tax increment, AB 1290 requires that the 33433 Report contain an explanation of why the sale or lease of the property will Page 72 of 190