The URL can be used to link to this page

Home My WebLink About29B - SCAG PILOTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 20, 2018 TITLE: AUTHORIZATION TO PROCEED WITH PILOT PROJECT WITH SCAG TO ANALYZE ESTABLISHMENT OF POTENTIAL FINANCING DISTRICTS FOR INFRASTRUCTURE PROJECTS (STRATEGIC PLAN NO. 6, 1) J CI ANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City of Santa Ana to proceed with participating in a Pilot Project with the Southern California Association of Governments (SCAG) and Kosmont Companies to evaluate the feasibility for implementation of an Enhanced Infrastructure Financing District (EIFD), Community Revitalization Investment Authority (CRIA), or a similar tool to assist in funding future infrastructure projects and help spur private facility investment. 2. Approve attached map as study area boundaries for the Pilot Project. DISCUSSION On January 1, 2015, Senate Bill (SB) 628 was enacted giving cities the authority to establish new governmental entities called Enhanced Infrastructure Financing Districts (EIFDs). EIFDs are financing tools that are designed to fund sustainable infrastructure and the construction or rehabilitation of other private facilities. After the repeal of redevelopment in 2012, the tool for capturing growth in property tax was eliminated giving cities less flexibility in borrowing against future growth in property taxes to fund public infrastructure and other improvements to enable private investment. Similar to Redevelopment, the projects within an EIFD are funded with property tax increment of consenting taxing entities (exclusive of school districts). With the dissolution of Redevelopment and limited financing tools to fund both public and private facilities, EIFDs may provide a necessary funding source to meet the needs of the city's aging infrastructure and continue the development momentum that is underway in Santa Ana. Another potential financing mechanism is the establishment of a Community Revitalization and Investment Authority (CRIA). Similar to EIFD's, both are public entities separate from the city that established them and can finance a wide -range of public and private projects. One of the 2913-1 Pilot Project with SCAG November 20, 2018 Page 2 major differences with a CRIA is that 80% of the eligible areas must meet low income and other requirements (e.g. crime, unemployment, deteriorated infrastructure), voter approval for the issuance of bonds is not required, and there is a requirement of 25% set aside for low/moderate income housing. Projects that could be financed by the EIFD or CRIA may include, but not be limited to, all of the following: • Highways, interchanges, and ramps; • Bridges; • Arterial streets; • Parking facilities; • Transit facilities; • Parks, recreational facilities, and open space; • Sewage treatment and water reclamation plants and interceptor pipes; • Facilities for the collection and treatment of water for urban uses; • Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles; • Storm water conveyance and collection facilities; • Flood control levees and dams, retention basins, and drainage channels; • Child care facilities; • Libraries; • Broadband and telecommunications infrastructure; • Sidewalks and streetscape improvements; • Bicycle lanes and paths; • Public art; • Corporation yards; • Police facilities; • Brownfield remediation; • Affordable housing as authorized under the EIFD Law; • Projects that implement a sustainable communities strategy and transit priority projects; and • Acquisition, construction, or repair of industrial structures for private use. Through a proposed pilot program with the Southern California Association of Governments (SCAG) and Kosmont Companies, all types of financing will be analyzed for possible implementation in targeted areas of the City of Santa Ana. The Study will: Evaluate the financing and funding capacity and the feasibility for implementation of an Enhanced Infrastructure Financing District (EIFD), Community Revitalization Investment Authority (CRIA), or similar tool over the near and long terms; • Estimate the feasibility and capacity utilizing market-based assumptions, as well as an inventory of anticipated development and public investment projects to be provided initially by City staff; and 29B-2 Pilot Project with SCAG November 20, 2018 Page 3 Establish and recommend next steps in district formation and present findings to identified stakeholders to support district formation. This proposed study area (Exhibit 1) includes the Civic Center and surrounding neighborhoods that feature a mix of multifamily and single family residential, along with low income population areas and SB 535 Disadvantaged Communities. It also includes the Santa Ana Regional Transportation Center, the Santa Ana Zoo, the former OC Register site, portions of the future OC Street Car alignment, the Midtown Specific Plan and two grade separation areas. Through an agreement with Kosmont, SCAG will be administering this study on behalf of the City of Santa Ana. There is no financial commitment from the City for this study. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 - Community Facilities & Infrastructure, Objective #1 (Establish and maintain a Community Investment Plan for all City assets). FISCAL IMPACT There is no fiscal impact associated with this action. -2�1K V-,, Steven A. Mendoza Executive Director Community Development Agency Exhibits: 1. Proposed Boundary Map 2. SCAG Scope of Work r•- -'.y ulisni Ph.. L µ, ,.I.r 1 I I it -- n IS swrlill V� N P W I'u ys :N HIeA ull'14rJ � r J t m IS ting"I'J .o J 'I 111A -V 3 IS u":ae)IldS N u IS 4�8 N VlOae N p ¢. 5 g1n"d` Ave Q i Y)'klS r•- - •. EXHIBIT 2 SCOPE OF WORK TASK 1• Additional Enhanced Infrastructure Financing Districts (EIFD)/Community Revitalization and Investment Authorities (CRIA) Pilot Project FeasibilityAnalysis Based on the EIFD/CRIA evaluation criteria utilized for SCAG's previous EIFD/CRIA Pilot Projects, Kosriont Companies ("Consultant') will perform initial EIFD/CRIA feasibility analysis for two additional Pilot Projects identified by SCAG, specifically focused on (1) City of Santa Ana's Civic Center Revitalization Plan, and (2) City of South Gate Gateway District Plan. This work follows Task Order 02's requested pilots for (3) the Old Town Zoning District/Packing House Transit Oriented Development District within the City of Placentia, (4) the Salton Sea Management Program area in the County of Imperial Deliverables: • Summary hypothetical tax increment analyses (individually referred to as "Analysis Summary") for the five pilot projects • Preparation and Presentation of Analysis Summary to local jurisdiction stakeholders (e.g. City staff, City Council) and SCAG at one (1) in-person meeting for each pilot project TASK 2: Pilot Project Stakeholder Eneagement The Consultant will lead engagement to support implementation of SCAG's completed EIFD/CRIA pilots to public and private sector entity stakeholders, potentially including, but not limited to, SCAG's Regional Council and Policy Committees, City Councils, County Administrative Offices, County Auditor -Controller /Treasurer/ Tax Collector/ Property Tax Manager, State Board of Equalization, special districts (e.g. public utilities, other special districts/agencies), potential partner planning organizations (e.g. Los Angeles County Metropolitan Transportation Authority, County of Los Angeles, Port of Los Angeles, etc.), major EIFD area developers, property owners, and/or registered voters. This will involve revisiting the results of Pilot Studies ("Analysis Summaries") with potential project sponsors and supplemental analysis, which shall not exceed 115 hours in total. This work follows Task Order 02's requested stakeholder engagement of 100 hours, along with 30 hours of knowledge transfer and technical assistance to support future EIFD/CRIA projects in the SCAG region (130 hours total). Deliverables: • Hypothetical tax increment analyses (individually referred to as "Analysis Summary") for the five pilot projects • Written Materials, list of participating stakeholders, comprehensive written description of engagement efforts and results of stakeholder engagement TIMELINE Work under Task Order 03 is expected to continue through December 30, 2018 and all Deliverables shall be submitted to SCAG by December 30, 2018. Note: New task order will be issued to provide technical assistance through June 2019. 29B-7