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HomeMy WebLinkAbout75-008RESOLUTION NO. 75-8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A THREE-YEAR HOUSING AND COMMUNITY DEVELOPMENT PLAN FOR THE CITY OF SANTA ANA, AND AUTHORIZING AND DIRECTING THE CITY MANAGER TO TAKE ALL NECESSARY STEPS TO FILE SAID PLAN AND AN APPLICATION FOR FEDERAL ASSISTANCE IN CONFORMANCE WITH SAID PLAN WITH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNDER THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, APPROVING AND ADOPTING A NEGATIVE DECLARATION FOR SAID PLAN AND SAID APPLI- CATION, AND DIRECTING AND DESIGNATING THE CITY MANAGER AS THE AUTHORIZED REPRE- SENTATIVE OF THE CITY OF SANTA ANA TO ACT IN CONNECTION WITH THE AFORESAID APPLICATION AND TO PROVIDE SUCH ADDITIONAL INFORMATION AS MAY BE REQUIRED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, on December 9, 1974, the City Council of the City of Santa Ana adopted Resolution No. 74-180 authorizing the City Manager of the City of Santa Ana to make application to the Department of Housing and Urban Development for certain funds under the Housing and Community Development Act of 1974, and authorizing the incurrence of costs for the planning and preparation of an application for such funds; and WHEREAS, the Housing and Community Development Task Force of the City of Santa Ana has since October 9, 1974, held a series of eight public meetings throughout the com- munity of the City of Santa Ana in order to provide citizens with adequate information concerning the amount of funds available for proposed community development and housing activities and the range of activities that may be undertaken including other important program requirements, and providing citizens with an adequate opportunity to participate in the development of an application for certain funds pursuant to the Housing and Community Development Act of 1974; and WHEREAS, the City of Santa Ana Human Relations Commission on January 21, 1975, and the City of Santa Ana Community Redevelopment Commission, on January 23, 1975, held meetings to provide citizens with information to allow their participa- tion as aforedescribed; and WHEREAS, on January 27, 1975, January 29, 1975, and January 30, 1975, after notice, the Planning Commission of the City of Santa Ana held the first of two mandatory public hearings on the proposed Three-Year Housing and Community Development Plan to obtain the views of citizens on Community Development and housing needs for the City of Santa Ana; and WHEREAS, the City Council of the City of Santa Ana on , after notice, held the second of two mandatory public hearings on the RESOLUTION NO. 75-8 PAGE TWO proposed Three-Year Housing and Community Development Plan to obtain the views of citizens on Community Development and housing needs for the city of Santa Ana; and WHEREAS, the City Council of the City of Santa Ana is desirous to approve a Three-Year Housing and Community Development Plan for the City of Santa Ana and to authorize and direct the City Manager to take all necessary steps to file the Plan and an Application for Federal Assistance in conformance with said Plan under the Housing and Community Development Act of 1974, and to approve and adopt a Negative Declaration for said Plan and application pursuant to the California Environmental Quality Act of 1970; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa Ana hereby approves and adopts the Negative Declaration for the Housing and Community Development Plan, which Negative Declaration is attached hereto as Exhibit "A", and by this reference incorporated herein as though fully seti forth, as the Negative Declaration for the Three- Year Housing and Community Development Plan for the City of Santa Ana, and the Application for Federal Assistance pursuant to the Housing and Community Development Act of 1974. BE IT FURTHER RESOLVED that the City Council of the City of Santa Ana hereby adopts and approves the attached Three-Year Housing and Community Development Plan for the City of Santa Ana, which is attached hereto as Exhibit "B", and by this reference incorporated herein as though fully set forth. BE IT FURTHER RESOLVED that Resolution No. 74-180 is hereby reconfirmed and that the City Manager of the City of Santa Ana is hereby authorized and directed to take all necessary steps to file the Three-Year Housing and Community Development Plan, and Application for Federal Assistance in conformance with said Plan under the Housing and Community Development Act of 1974, and the attached Negative Declaration with the Department of Housing and Urban Development and all other appropriate State and Federal agencies for the purpose of qualifying for the receipt of funds for the im- plementation of the Three-Year Housing and Community Development lan of the City of Santa Ana. BE IT FURTHER RESOLVED that the City Manager of the City of Santa Ana is hereby directed and designated as the authorized representative of the City of Santa Ana to act in connection with aforesaid application and to provide such additional information as may be required by the Department of Housing and Urban Development. PASSED AND ADOPTED by the City Council of the City of Santa Ana at its regular meeting held on the 3rd day of February , 1975. ATTEST: ~ MAYOR CLERK OF THE COUNCIL RESOLUTION NO. 75-8 PAGE THREE STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SANTA ANA SS.: I, FLORENCE I. MALONE, do hereby certify that I am the Clerk of the Council of the City of Santa Ana; that the fore- going Resolution was introduced to said Council at its regular meeting held on the 3rd day of February , 1975, and was at said meeting passed and adopted by the following vote, to wit: AYES, COUNCILMEN: Bricken, Garthe, EYanS, NOES, COUNCILMEN: Ward, Yamamoto, Markel ABSENT, COUNCILMEN: None Griset CLERK OF THE COUNCIL PPROVlD AS TO A. WITHERS, CITY ATTORNEY EXHIBIT A NEGATIVE DECLARATION FORM An Amendment adding to Negative Declaration issued 1-20-75. (ENAr) NUt4EER:,, 75-10 , DA?E: 2-3-75 Cit.¥ of Santa Ana ZO Civic Center P,,la, Fa, Santa, Ana,, CA gZ701 PLANNING DEPARTMENT 20 Civic Center Plaza Santa Aha, CA 92701 Telephone: 834-4164 Community DeveloPment Plan INITIAL STUDY PREPARED BY: COPIES AVAILABLE PROJECT TITLE/DESCRIPTION: City of Santa Ana PROJECT LOCATION/ADDRESS: PROJECT ASSESSOR'S PARCEL NO. (IF KNOWN): REVIEWING DEPARTMENT= Planning In accordance with the City of Santa Ana's policies regarding implementation of the California Environmental Quality Act of 1970 (specifically Section 21151 of the Public Resources Code}, the Environmental Impact Evaluator for this department has reviewed the EnviFonmental Assessment Form submitted in re- quest for Negative Declaration status for the above described project and hereby finds that the proposed project cannot, or will not, have a significant effect on the environment. Neg- ative Declaration status is thergf0re.g~anted for this pro- ject and the submittal of an Environmental Impact Re~ort is thereby.not necessary. The granting of Negative Declaration status is based upon the ' following: The Community Development Program consists of a one yearplan and a three year program. As outlined in Exhibit B , the Plan consists of various parts and their impact upon the environment is evaluated herein: Many of the proposed programs are categorially exemptfrom the quirements of the CEQA, others are not defined as projects under CEQA and are therefore exempt, and some while not being exempt, will not have any adverse impact on the environment and therefore will receive Negative Declaration Status. Some of the programs have previously been approved by the City Council and have re- ceived an environmental Impact determination. The cumulative effect of the combined programs under the CD plan will have a positive impact on the City of Santa Aha by provid- ing improved housing, public services, and park facilities for its citizens. No adverse imp&~$.Qn the environment;are anticipated from the cumulative effects of the CD Plan. APPROVED BY ~ ~~'~u DATE 2-3-75 .. atorEnvlronmental Eval · NDF 2-74 I c~ I I I I -4- COMMENTARY ON PLAN FOR PROPOSED USE OF COMMUNITY DEVELOPMENT FU.N. DS REVENUES: Both revenue and expenditure amounts are expressed in thousands, ~nd revenue estimates are rounded to the nearest $10,000. Note the rapid rise in anticipated revenues in the second and third years, and the level- ing for the remaining years· The H.C.D. Act of 1974 provided for a six year program, required that a plan be submitted for use of those funds for the first three years, and requires updated and re-filing of three-year plans annua-~I~-thereafter. However, funds are appropriated by Congress on a yearly basis only, and any changes in the annual three-year plans must be justified and are subject to HUD approval. EXPENDITURES: Se Development of Neighborhood Plans. Specific neighborhood plans are needed to develop project priorities and cost estimates for target areas to prevent the spread of residential blight and unsafe structures, to help stabilize property values, and to improve the living environ- ment in Santa Ana. It is contemplated that most of these funds will be needed in the beginning of the six-year program to hire trained pro- fessionals to survey community needs, evaluate priorities and submit tentative improvement plans to local resident advisory groups for their input and recommendations. Environmental impact statements will be re- quired for approved projects. It may also prove desirable to create a citywide advisory group, which perhaps could be composed partially of representatives from the Planning Commission, Redevelopment Com- mission, and Human Relations Commission, to help coordinate total finan- cial resources and project timing. Also, some of these funds could be used for advance engineering design and acquisition costs for projects programmed in subsequent years. Redevelopment Pro~ect. This is the most important current project priority du'e to the recent funding problems which face the Redevelop- ment Agency, and perhaps the most difficult to illustrate in this programmatic presentation for expanding C.D. funds. Therefore, a separate attachment and commentary have been prepared (Exhibits 1 and 2). The annual amount of $250,000 shown in this program category repre- sents part of a proposed ten-year commitment of funds which can be used initially to support a $5,000,000 redevelopment revenue bond issue for capital purposes, and subsequent C.D. appropriations can be used for any HUD-approved C.D. project within the redevelopment project area. This should provide considerable flexibility for the Redevelopment Commission and Agency.. Senior Citizens' Housing Pro~ect. The $72,000 recommended in the first lear should pr6vi'de for site clearance costs and complete the re- quired funding of the downtown senior citizens' housing site. Total site acquisition and relocation costs (approximately $325,000) have been funded in the current fiscal year (1974-75) i A private developer will pay for project development, and an annual HUD subsidy of approx- imately $750,000 will help operate these 200 units of housing for the elderly poor which were authorized by Santa Aha voters in November, 1975. The housing development is taxable and will contribute tax increment revenue to the downtown redevelopment project. Water System. This $79,000 of C.D. funds will pay for a portion of t~e City's costs of acquiring a substandard private water system in the south central area of the City and benefit the City through im- proved fire protection.. Both a majority of the members of this private water system and the City Council have authorized this action. Housing Replacement Program. These funds can be used for a spot sl~m clearance program throughout the City to eliminate abandoned and unsafe structures and re-sell the sites to private developers on condition they re-build new residential units. This will return safe residential Page 2 Se units to the tax rolls and hopefully will stimulate greater pride in home ownership and voluntarily improvements in nearby residences. In the central city area, these funds can be used by the Redevelopment Agency to acquire gradually the 18 acres of substandard residences in the downtown project area, relocate the residents to sound dwellings, clear the land, and re-sell it to private developers for new housing units. It will probably be necessary to acquire a full city block at one time in this area so multi-family units can be constructed. Rehabilitation Loans. Loans can be made available at nominal or re- duced rates of interest, and with or without partial subsidy, to qualified iow-income homeowners who are unable to obtain commercial loans to bring their residential units up to minimum safety codes. Qualifying procedures must be developed and repayments could be placed in revolving, interest-bearing accounts to be used again for additional 'home improvement loans. A portion of these rehabilitation loans might also be made available to qualified owners of conunercial and indus- trial properties if HUD approved. Neighborhood Improvements. It is recommended that the largest portion of C.D. funds (30%) be used for implementing neighborhood improvement projects. These could include storm drains, sewers, street improve- ments, curbs, sidewalks, street lights, street trees, open space acquisition, park development and any other HUD-approved project of direct benefit to City housing and living conditions. Smaller amounts are suggested in the initial years to allow sufficient time for the development and citizen approval of specific neighborhood improvement plans, particularly in areas such as west of the Santa Ana River where drainage improvements are a prerequisite to street improvements. C-5-F Storm Drain. This specific project is identified separately be- cause of its magnitude. Further engineering analysis has indicated that a minimum of $800,000 must be spent initially to achieve any significant benefit and this will preclude funding in the first year unless other potential sources of funding can be secured. These other sources could include funding from the County Flood Control District, General Revenue Sharing, or the Economic Development Act. The project will be of great benefit to large areas in the western portion of the City, and in many instances must be completed before street improvements can be constructed. Contingency and Administration. A small portion of C.D. funds is provided as a contingency for inflation in project cost estimates, and for the coordination and administration of specific development plans. I 0 I 0 ! eq ! ~ -7- 7,~ EXHIBIT 2 COMMENTARY ON HYPOTHETICAL ~SCAL PLAN FOR REDEVELOPMENT AGENCY PURPOSE. Exhibit C was prepared jointly by the City Manager and Executive ~r of the Redevelopment Agency solely to illustrate a plan of poten- tial revenue and expenditure projections for redevelopment and their re- lationship to C.D. funds and City general funds. Because of the fiscal crisis now facing the downtown redevelopment project due to the reduction in current tax increment revenue from $670,000 to $30,000, the goal here has been to provide a $5,000,000 working capital fund next fiscal year so that construction projects can proceed as planned and begin to generate tax increment funds which hopefully should provide sufficient additional funds within the next three years to provide for annual redemption of the initial $5,000,000 bond, and shortly thereafter generate additional cash flow for additional tax increment bonds. REVENUES ~ity General Funds. For the current and previous fiscal years, the 'City has loaned tax funds to the Redevelopment Agency to initiate the downtown project. These loans are projected to continue for one full additional fiscal year and perhaps a small portion of the next. Hopefully, they will not be required after that as tax increment funds and possibly other revenue sources - such as resale of agency proper- ties, increase. C.D. Funds. As commented upon in Exhibit B, these C.D. funds can be Used for any HUD-approved project within the redevelopment area in compliance with the H.C.D. Act of 1974, thus providing significant flexibility in their use. Specific projects would have to be identi- fied to secure HUD approval. For example, a portion of these C.D. revenues could be "earmarked" for the development of a redevelop- ment project in the Delhi Area and "broken out" of the general opera- tions expenditure classification for this purpose. C.D. Funds. This $72,000 is specifically for completion of the down- town senior citizens' housing projected as explained in Exhibit B. Revenue Bonds. This $5,000,000 revenue bond is essential to provide ~orking capital soon to continue the downtown redevelopment project and enable it to become self-supporting financially within three to five years. The initial bond is possible only with a legally-binding commitment of $250,000 of City tax funds for ten consecutive years, plus the use.of tax increment funds from the project, to repay this bond principal and interest. However, as this fiscal projection indicates, this guarantee or pledge hopefully would never actually require the repayment of $250,000 in tax funds yearly because C.D. funds could be utilized the first year for an "approved" project, and subsequent annual bond repayments could be made with a combination of bond reserves and tax increment funds. As tax increment funds grow annually, a smaller portion of bond reserves would be needed for debt retirement and, hopefully within two or three years the tax increment funds would be totally sufficient for annual debt retire- ment, and hopefully after the third year would "generate" sufficient cash flow income to provide additional bonding capacity. As a safe- guard, should tax increment not materialize sufficiently within a period of three years or whatever period the Agency (City Council) deemed reasonable, any unspent bond reserves and/or the assets of the Redevelopment Agency (mainly land) could be used to retire the debt. The Redevelopment Director recommends this approach and will review its legal soundness with bond counsel. Tax Increment. Because of the proportion of assessment error which reduced'our anticipated income this year from $670,000 to $30,000, it is impossible to make income projections here with much certainty EXHIBIT 2 - Cont'd. Page 2 of their accuracy until an audit of assessments within the project area for both the current and base year are complete. This may re- quire several weeks. However, considering the value of such large increments as the Federal Building and the value of Civic Center Drive improvement acquisitions in removal from the base year, it seems reasonable to estimate an increment of $200,000 for next year. The senior citizens' housing project, and possibly the improvements of the First American Title Company should substantially increase the tax increment for 1976/77. Resale of Land. Most properties'acquired by the Agency will be'cleared, ~onsolidated and probably sold for less than their acquisition cost as an inducement for major private redevelopment in the downtown area. The senior citizen housing site will be sold next year and possibly the Kramer site. No dollar amount is estimated, but some revenue will be received and can be counted upon to "cushion" these fiscal projec- tions and will help keep the budget in balance. EXPENDITURES: General Operations. The small staff may increase slightly, but it is ~stimated that most of these operational funds needed for supporting studies, appraisals, etc. will be provided by contract with private professionals. 2. Senior Citizens' Housing. Funds needed to complete this project as explained in Exhibit B. Bond Reserves and Repayment. Most of these funds in the first year or two could be set aside zrom proceeds of the bond sale in 1975/76, as commented upon in the revenue section above, until sufficient annual tax increment funds are generated to offset annual debt retire- ment. Hopefully, as indicated, this will occur between the third or fourth year. Working Capital Fund. Bond proceeds can be used to acquire sites, 60nst'r6ct needed u~ilities and improvements, all of which hopefully will stimulate private redevelopment of the downtown. If this occurs, additional working capital will be needed within three to four years. 5. Bond Reserves. This is a potential expenditure and represents the unused bond ~roceedS. --9-- ·