HomeMy WebLinkAbout80B - JOINT - FIVE-YR IMPLEMENTATION PLANREQUEST FOR COUNCIL/
AGENCY ACTION
MEETING DATE:
MARCH 7, 2011
TITLE:
RESOLUTION AND COOPERATIVE AGREEMENT FOR
THE IMPLEMENTATION OF PROGRAMS AND
PROJECTS ESTABLISHED IN THE 2010/11 - 2014/15
FIVE-YEAR IMPLEMENTATION PLAN
t '
CITY MANAGER EXECUTIVE (RECTOR
RECOMMENDED ACTION
CITY COUNCIL
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1st Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Adopt a resolution of the City Council making certain findings for the Community
Redevelopment Agency to fund and implement programs and projects established in the
2010/11 - 2014/15 Five-Year Implementation Plan.
2. Authorize the City Manager and Clerk of the Council to execute the attached Cooperative
Agreement with the Community Redevelopment Agency (Agency) in the amount not-to-
exceed $210 million for the implementation of programs and projects established in the
2010/11 - 2014/15 Five-Year Implementation Plan, subject to non-substantive changes
approved by the City Manager and City Attorney.
COMMUNITY REDEVELOPMENT AGENCY
1. Adopt a resolution of the Community Redevelopment Agency making certain findings for the
Agency to fund and implement programs and projects established in the 2010/11 - 2014/15
Five-Year Implementation Plan.
2. Authorize the Executive Director and the Agency Secretary to execute the attached
Cooperative Agreement with the City of Santa Ana (City) in the amount not-to-exceed $210
million for the implementation of programs and projects established in the 2010/11 - 2014/15
Five-Year Implementation Plan, subject to non-substantive changes approved by the
Executive Director and Agency General Counsel.
8OB-1
Implementation of Programs and Projects
March 7, 2011
Page 2
DISCUSSION
In June of 2010, the Agency adopted a Five-Year Plan, which establishes goals to support
economic development, commercial, industrial and community revitalization and to provide and
preserve affordable housing. To implement the programs, activities and projects associated with
each goal, the Agency has made redevelopment fund commitments based on estimated available
tax increment revenue and debt financing structures. (Exhibit 1)
Currently, the Agency is actively involved in the development of various projects that have been
identified in the Five-Year Implementation Plan covering the Agency's merged project area. Many
of the identified projects are anticipated to assist the economic recovery of the City, as well as
ensure the creation of locally-based, quality jobs.
In response to the Governor's proposed State budget package and proposals for FY 2011-12,
which include recommending the elimination of redevelopment agencies "to realign the delivery of
state services to counties and local governments" and eliminate a projected State deficit of $25.4
billion, it is recommended to reaffirm the Agency's obligations, programs and projects identified
under the Five-Year Implementation Plan for 2010/11 - 2014/15.
In the current budget environment, the Agency's ability to carry out the Five-Year Implementation
Plan objectives may be limited. Historically, the Agency has successfully partnered with the City to
effectuate a number of capital projects and programs. Pursuant to the California Redevelopment
Law, Health & Safety Code Section 33220, certain public bodies, including the City, may aid and
cooperate with the City in the planning, undertaking, construction and operation of redevelopment
projects. Building on this success, the Agency desires assistance and cooperation in the
implementation and completion of these activites. By entering into the Cooperative Agreement,
the Agency will pledge the unencumbered assets and resources in the current FY 2010-11 Budget
and the Net Tax Increment (defined as gross tax increment less County administrative fees,
statutory pass-throughs, and Housing Set-Aside) from FY 2011-12 through FY 2014-15 to protect
and secure existing obligations and to acquire, construct, develop and implement projects
specified in the approved budgets and spending plan. The purpose of this Cooperative Agreement
is to facilitate the implementation of those activites pursuant to the terms and conditions outlined in
the Cooperative Agreement.
8OB-2
Implementation of Programs and Projects
March 7, 2011
Page 3
FISCAL IMPACT
Funds are available in the Merged Project Area Capital Improvements Project fund (account no.
57018830-various), South Main Commercial Corridor Capital Project fund (account no. 55318830-
various), Low and Moderate Housing Capital Project fund (account no. 50718830-various), and
administration funds (account no. 50718810-various, 50718820-various, 57018841-various,
57018842-various, 57018843-various). Tax increment revenue receipts for FY 2011-12 through
FY 2014-15 will be allocated in each respective fund.
APPROVED AS TO FUNDS AND ACCOUNTS:
W"N &U)AZk
Nancy T. wards
Interim E utive Director
Community Development Agency
Francisco Gutierrez
Executive Director Olt
Finance & Management Services Agency
NTE/mlr
Exhibits: 1. Five-Year Implementation Plan
2. Council Resolution
3. CRA Resolution
4. Cooperative Agreement
8OB-3
8OB-4
COMMUNITY RED[VELOPMENT AGENCY
OF THE CITY OF SANTA ANA
lvtwmo °1'EAR
HMIPLLMEN TIATi?ON
July 1,2010-June 30,2015
EXHIBIT 1
8OB-5
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA
FIVE-YEAR
IMPLEMENTATION PLAN
July 1, 2010 - June 30, 2015
Miguel A. Pulido :
CHAIRPERSON
Claudia Alvarez
VICE CHAIRPERSON '
David Benavides
AGENCY BOARDMEMBER
Carlos Bustamante
AGENCY BOARDMEMBER
Michele Martinez
AGENCY BOARDMEMBER
Vincent Sarmiento
AGENCY BOARDMEMBER
Sal Tinajero
AGENCY BOARDMEMBER
David N. Ream
CITY MANAGER
Cynthia J. Nelson
EXECUTIVE DIRECTOR
Joseph W. Fletcher
GENERAL COUNSEL
Maria D. Huizar
RECORDING SECRETARY
?961117-Me,
TABLE OF CONTENTS
PAGE
1. INTRODUCTION ..................................................................................................... 5
A. BACKGROUND ............................................................................................5
B. IMPLEMENTATION PLAN ..........................................................................7
II. REDEVELOPMENT COMPONENT ....................................................................... 9
A. BACKGROUND ...........................................................................................11
B. SANTA ANA PROJECT AREAS ...................................................................12
C. GOALS AND OBJECTIVES ..........................................................................18
D. AGENCY ACCOMPLISHMENTS .................................................................19
E. PROPOSED PROJECTS AND PROGRAMS ................................................ 23
F. REDEVELOPMENT EXPENDITURES ......................................................... 31
Background ...................................................................................31
Revenues .......................................................................................32
Existing Obligations ......................................................................34
G. RELATIONSHIP BETWEEN GOALS AND OBJECTIVES,
PROGRAMS, PROJECTS AND EXPENDITURES ........................................36
III. AFFORDABLE HOUSING COMPONENT ...............................................................40
A. APPLICABLE AFFORDABLE HOUSING REQUIREMENTS ....................... 40
B. AFFORDABLE HOUSING FUND STATUS ................................................. .42
Affordable Housing Fund Deposits ........................................... 43
Use of Affordable Housing Fund Deposits ............................... 43
Affordable Housing Fund Cash Flow Analysis ..........................44
Proportional Expenditures of Affordable Housing Fund........ 45
Excess Surplus Calculation ............................................................. 49
C. INCLUSIONARY HOUSING PRODUCTION STATUS .................................49
Legal Requirements .................................................................... 49
Applicability of Inclusionary Housing Production
Requirements ............................................................................... 50
Method of Calculation of Inclusionary Housing
Production Requirements .......................................................... .50
Inclusionary Housing Production Requirements ..................... .50
Inclusionary Housing Production Fulfillment ........................... .52
Inclusionary Housing Production Obligation
Surplus/(Deficit) Calculation ....................................................... 53
D. REPLACEMENT HOUSING STATUS .......................................................... 54
Legal Requirements ....................................................................... 54
Past Removal of Low and Moderate Income Units ............... 54
Future Removal of Low and Moderate Income Units........... 55
E. ABILITY TO COMPLY WITH OBLIGATIONS PRIOR TO TIME
LIMIT OF EFFECTIVENESS OF REDEVELOPMENT PLAN ........................ 55
8OB-7
APPENDIX A- SUMMARY OF SUPPLEMENTAL JUDGMENTS
APPENDIX B - GLOSSARY OF TERMS
APPENDIX C-TIME AND FINANCIAL LIMITS (AS OF JUNE 2010)
Santa Ana Communi?y 11, ?-velopment Agency Imp1nw=t=Plan July 1, 2010 to June 30, 20' 'r
For the Merged Santa • redevelopment Project P&
1. INTRODUCTION
The following document is the five-year Implementation Plan for the Community
Redevelopment Agency of the City of Santa Ana's Merged Project Area. It covers the fiscal year
period beginning on July 1, 2010 and ending on June 30, 2015. It is designed and intended to
meet all requirements as established by Assembly Bill 1290, and to provide city residents and
other stakeholders with critical information regarding the Agency's future plans.
This Implementation Plan is a policy statement rather than an unalterable course of action. It
has been prepared to set priorities for redevelopment activities within the Merged Project Area
for the five-year period covered by the Implementation Plan and incorporates currently known
financial constraints of the Agency in developing a program of activities to accomplish
revitalization efforts for the Merged Project Area. New issues and opportunities may be
encountered during the course of administering redevelopment within the Merged Project Area
during the five-year period. Therefore, this Implementation Plan may be amended, if
necessary, to effectuate its purposes.
BACKGROUND
Redevelopment is a tool created by state law to assist local governments in the long-term
planning and improvement of areas where the private sector acting alone or with government
action other than redevelopment has been unable to correct the deterioration and
underutilization of an area. The physical and economic conditions that result in the
deterioration and underutilization that qualify an area for inclusion in a redevelopment project
area are defined as blighting conditions (see Appendix B for glossary terms). Through
redevelopment, local governments can improve areas and eliminate blight by assisting the
private sector in the development and reconstruction of residential, commercial and industrial
uses, and providing needed infrastructure and community facility improvements. Through
these efforts, redevelopment can assist in creating jobs and improving property values.
In order for redevelopment agencies to act, a jurisdiction must first adopt a redevelopment
plan. A redevelopment plan is a legal document that describes the Agency's authorities and
responsibilities. The redevelopment plan establishes financing methods to implement
programs and projects to revitalize areas including the authority to collect tax increment. The
10 7
Santa Ana Community Redevelopment Agency lrnp
i ri._T '' ?Ian July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project?rkF ?11 9 Page 5
redevelopment plan also indentities the land uses and development standards to be
implemented in the project area, which must be consistent with the General Plan. A required
element of the redevelopment plan is a mandate to conserve, improve, and develop affordable
housing.
The following is a list of some of the tools available to Redevelopment Agencies for revitalizing
and redeveloping project areas:
• Buy land. (Sections 33391 & 33430).
• Buy improvements. For example, buy and demolish the building and let the owner
rebuild on the land. Agency absorbs the value of the building and cost of demolition
(Sections 33391 & 33430).
• Relocate a tenant including buying out a lease, if the space is to be substantially
rehabilitated. The Agency cannot relocate a tenant for the purpose of moving a more
desirable tenant into the same space if it is unchanged (Section 33394).
• Pay for curbs, sidewalks and street improvements (Section 33445).
• Make rehabilitation loans to either owners or tenants for commercial buildings or
structures (Section 33444.5).
• Assist with the financing of facilities or capital equipment for the development or
rehabilitation of property that will be used for industrial or manufacturing purposes
(Section 33444.6).
• Pay for a publicly-owned parking structure (Section 33445).
• Lease land for public use such as a parking lot (Section 33430).
• Remedy hazardous substances (Section 33459.1).
• Pay for on-going services to attract businesses to an area such as marketing (Section
33678). However, agencies cannot pay for ongoing governmental services such as
police services.
To the extent the following activities result in the provision or preservation of low and
moderate income housing units, Section 33334.2(e) authorizes the Agency to exercise any of its
powers:
• Acquire real property or building sites;
• Improve real property or building sites;
• Donate real property to private or public persons or entities;
• Acquire, construct and or rehabilitate buildings or structures;
• Provide subsidies to or for the benefit of very-low, low or moderate income households
(Section 33334.15);
• Develop plans, pay principal and interest on bonds, loans, advances or other
indebtedness, or pay financing or carrying charges;
• Maintain the community's supply of mobile homes;
• Preserve the availability of lower income units in housing developments which are
assisted or subsidized by public entities and which are threatened with imminent
conversion to market rates; and
• Satisfy replacement housing requirements (Section 33334.2(f)).
Santa A, mmunity Redevelopment Agency Imp tior P n July 1, 203 ', June 30, 2015
For the ,d Santa Ana Redevelopment Projelffl§-l U Page 6
IMPLEMENTATION PLAN
In 1993, the California State Legislature passed Assembly Bill 1290 (Stats. 1993, ch. 942), which
amended the California Community Redevelopment Law (Health and Safety Code Section
33000 et seq., "CRL") to among other things increase the accountability of redevelopment
agencies. One of the changes was the addition of Article 16.5 "Adoption of Implementation
Plans" which requires that on or before December 31, 1993, and each five years thereafter, a
redevelopment agency that has adopted a redevelopment plan prior to December 31, 1993,
shall adopt a implementation plan that contains the specific goals and objectives of the agency
for the project area, the specific programs, including potential projects, and estimated
expenditures proposed to be made during the five year period. The Implementation Plan also
includes an explanation on how the goals and objectives, programs and expenditures will
eliminate blight within the project area and fulfill the agency's affordable housing
requirements.
This Implementation Plan is composed of two separate components, a redevelopment
component and an affordable housing compliance component. The redevelopment component
describes the Agency's short-term goals and objectives for blight elimination and the programs
and proposed projects to reach that goal. The Implementation Plan also identifies the
anticipated expenditures for the programs which incorporate the specific projects. Finally, the
redevelopment component of the Implementation Plan describes the relationship between the
goals and objectives, programs, projects and blight elimination. The redevelopment
component describes the Agency's activities planned for the five year period including
affordable housing projects.
Article 16.5 of the CRL also requires that an Implementation Plan explain how the components
of the Implementation Plan will implement various CRL requirements regarding low and
moderate income housing. The affordable housing compliance component specifically
demonstrates how the Agency will meet the statutory requirements for depositing the required
20% of gross tax increment revenues (Set-Aside) into the affordable housing fund (Affordable
Housing Fund) and the expenditure for housing purposes.
Santa Ana Community Redevelopment Ag =-s it ?tio? P n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment t 40 page 7
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Santa Ana Community Redevelopment Agency Imp r do P n r i July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project?? Page 8
II. REDEVELOPMENT COMPONENT
The Community Redevelopment Agency of the City of Santa Ana (the "Agency") adopted six
redevelopment project areas between 1973 and 1989, including the Central City
Redevelopment Project Area, Inter-City Commuter Station Redevelopment Project Area, North
Harbor Redevelopment Project Area, South Harbor Redevelopment Project Area, South Main
Redevelopment Project Area, and the Bristol Corridor Redevelopment Project Area (the
"constituent Project Areas" or "Project Areas"). To allow tax increment revenues to be shared
between project areas and thereby facilitate redevelopment of the Project Areas, the Project
Areas were merged in 2004. The Project Areas continue to retain their respective boundaries,
time, and financial limits. The following map shows the boundaries of the Santa Ana Merged
Project Area ("the Merged Project Area").
Santa Ana Community Redevr :Ent Agency Irn14 0 ?tioLktn July 1, 2010 to June 30, 2015
For the Merged Santa Ana R ,pnient Project Page 9
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Merged Redevelopment Project Areas
CENTRAL CITY NORTH HARBOR INTERCITY
0 SOUTH MAIN SOUTH HARBOR BRISTOL
Santa Ana Community Redevelopment Agency Im to '.l "r , July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Projeckt Page 10
A. BACKGROUND
State law establishes time limits for the exercise of basic redevelopment activities. In
accordance with CRL Section 33333.6 or redevelopment plans adopted on or before December
31, 1993, the following limits shall apply:
The time limit to establish loans, advances, and indebtedness to be paid with the revenue from
property taxes may not exceed 20 years from the adoption date of the redevelopment plan or
January 1, 2004, whichever is later.
The effectiveness of a redevelopment plan may not exceed 40 years from the adoption date or
January 1, 2009, whichever is later. After the effectiveness of a redevelopment plan has
expired, an agency has no authority to act pursuant to the redevelopment plan except to pay
previously incurred indebtedness and to enforce existing covenants and contracts. A
redevelopment agency may receive property tax increment up to ten years from the
termination of the redevelopment project area plan.
If provided by the redevelopment plans, an agency may commence eminent domain
proceedings to acquire property within the Project Area for a period not to exceed 12 years
from the adoption date.
If a redevelopment plan adopted prior to October 1, 1976 authorizes the issuance of bonds, the
redevelopment plan should include a limit on the amount of bonded indebtedness that can be
outstanding at one time. These times and financial limitations may be extended or increased
only through an amendment to the redevelopment plan.
The following are the time limits incorporated within the redevelopment plans for the Project
Areas.
Table 1: Merged Project Area Time Limits
M
Central City Expired 7/2/16 7/2/26 Expired
(Adopted 7/2/73) 1/1/04 6/5/2008
Inter-City Expired 7/6/25 7/6/35 Expired
(Adopted 7/6/82) 1/1/04 6/5/2008
North Harbor 7/6/22 7/6/25 7/6/35 Expired
(Adopted 7/6/82) 6/5/2008
South Harbor 7/6/22 7/6/25 7/6/35 Expired
(Adopted 7/6/82) 9/2/04
South Main 7/6/22 7/6/25 7/6/35 Expired
(Adopted 7/6/82) 8/16/07
Bristol Corridor Expired 12/4/30 12/4/40 Expired
(Adopted 12/4/89) 12/4/09 12/4/01
Santa Ana C ? aity Redevelopment Agency ImpJ y? iol P? July 1, 2010 to' ; 30, 2015
For the Merl : +la Ana Redevelopment Project Page 11
B. SANTA ANA PROJECT AREAS
The following is a history of redevelopment and project areas summary of the blighting
condition within the Merged Project Area, presented by constituent Project Area.
Central City Redevelopment Project Area
The Central City Redevelopment Project Area was adopted on July 2, 1973, by Ordinance No.
NS-1173. Central City Redevelopment Project Area consists of 694 acres which encompasses
the historic downtown area including retail, office and government uses. The project was
adopted in response to
deteriorating conditions in the
downtown. The downtown
began to decline in the 1960s
when growth in the Orange
County suburbs resulted in Santa
Ana's displacement as the
central marketplace for Orange
County. At the time of project
adoption, the downtown had a
substantial number of
deteriorated and obsolete
buildings. Many of the retailers
had left the downtown for more
desirable locations, which in turn
affected the vacancy rate, lease
rates and variety of merchandise
available to residents. The goal
of the redevelopment plan was
to reverse the decline of the
downtown and re-establish the
downtown as a vibrant area.
Although the Agency has
contributed significantly towards
the improvement of the
downtown, the Agency would
like to continue to address
revitalization needs through the
assistance of the private sector
by way of rehabilitation loans
and marketing the downtown as
a retail destination.
Santa Ana Community Redevelopment Agency ImrR i do P n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Projecc"0? I ? Page 12
Inter-City Commuter Station Redevelopment Proiect Area
The Inter-City Commuter Station Redevelopment Project Area was adopted by the City Council
on July 6, 1982, by Ordinance No. NS-1636, and contains 536 acres of land. Major roadways
traversing this Project Area include the Interstate 5 Freeway, Grand Avenue, 1st Street and 4th
Street. The focal point of the Inter-City Commuter Station Redevelopment Project Area is the
Santa Ana Regional Transportation Center (SARTC), which the Agency participated in
constructing and developing. This project area includes older industrial uses that originally
developed in the area to take advantage of the rail access. However, residential uses are
scattered throughout the area, and there is a node of commercial uses located at the
intersection of 17th Street and Grand Avenue.
Although the initial SARTC improvements have been completed, the surrounding area
continues to have a mix of incompatible and deteriorated residential and industrial uses and
infrastructure deficiencies. The Agency plans to assist in projects, such as mixed use that will
capitalize on the availability of public transportation, thereby providing additional housing
opportunities and compatible industrial uses while eliminating deterioration and incompatible
uses.
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INTERCITY ^ ^
REDEVELOPMENT PROJECT AREA .
Community Redevelopment Agency
City of Santa Ana, California
Ana Community Redevelopment Agency Impl&nig ioyPJ.y1 ; 2010 to June 30, 2015
e Merged Santa Ana Redevelopment Project ??1IKK11 ?'? rr i Page 13
North Harbor Redevelopment Project Area
The North Harbor Redevelopment Project Area was adopted by the City Council on July 6, 1982,
by Ordinance No. NS-1637, and contains approximately 428 acres of land. The North Harbor
Redevelopment Project Area is generally located along Harbor Boulevard from Westminster
Avenue to Kent Avenue
and along 5th Street, 1st
Street and McFadden
Avenue from Harbor
Boulevard to the Santa
Ana River. This Project
Area includes a mix of
older residential and strip HAZAR
commercial uses fronting
along Harbor Boulevard
with newer commercial
uses developed near 1st
and 5th Streets. The
Agency's plans for
revitalization of Harbor
Boulevard include
modernizing or replacing
obsolete commercial
structures and
deteriorated residential
uses with commercial and
mixed use projects that
are compatible with a
commercial corridor. The
Agency's activities may
range from site acquisition
to provide parcels large
enough for contemporary
use to small business
loans to enhance business
activity thereby reducing
vacancies and increasing
property values.
Santa Ana Community Redevelopn ency Imp io P6i
For the Merged Santa Ana Redevelo , Project
July 1, 2010 to June 30, 2015
Page 14
F-
South Harbor Redevelopment Project Area
The South Harbor Redevelopment Plan was adopted by the City Council on July 6, 1982, by
Ordinance No. NS-1638. The South Harbor Redevelopment Project Area encompasses
approximately 1,050
acres primarily along
Harbor Boulevard from
Warner Avenue to
MacArthur Boulevard
and along the west side
of Fairview Street from
Edinger Avenue to
Sunflower Avenue. The
South Harbor Project
Area is primarily
developed with light
industrial uses. The goal
for the South Harbor
area is to create a
vibrant contemporary
business park, thereby
eliminating obsolete
industrial uses and
improving the
underutilized character
of the project area.
Agency activities may
include site acquisition
and infrastructure
improvements to attract
new development and
marketing industrial
uses in the project area.
SOUTH HARBOR`
REDEVELOPMENT PROJECT AREA
Community Redevelopment Agency
City of Santa Ana, California
r
OWER AV. _ r_-
?? 1
Santa Ana Commun.itY Redevelop b ment AgencY Im _ tior P n
July 1, 2010 to June 30, 2015 tto For the Merged Santa Ana Redevelopment Projec b Page 15
South Main Redevelopment Project Area
The South Main Redevelopment Project Area was adopted by the City Council on July 6, 1982,
by Ordinance No. NS-1639. The South Main Redevelopment Project Area encompasses
approximately 1,500
acres and is located along
Main Street from 1st
46 3E?? 4 If
Street to Sunflower
Avenue and the area west
of the 55 Freeway along
McFadden Avenue,
Edinger Avenue, Warner
Avenue, Dyer Road and
MacArthur Boulevard.
The Project Area includes
older strip commercial
uses interspersed with
residential units radiating
out from the downtown
along Main Street and
newer manufacturing and
light industrial uses along
the southeastern
boundary of the City.
Redevelopment has been
most notable in the
industrial and commercial
areas along the
southeastern boundary of
the City. The Agency's
primary focus is on the
needed revitalization of
the commercial corridors
through street
improvements,
rehabilitation programs
and assisting in private
development that will
eliminate obsolete and
incompatible uses.
Santa Ana Communil ,; `velopment Agency Imp tio-Pla
July 1, 2010 to June 30,
For the Merged Santz edevelopment Project c LVV p
Bristol Corridor Redevelopment Project Area
The Bristol Corridor Redevelopment Project Area was adopted by the City Council on December
4, 1989, by Ordinance No. NS-2039. The Bristol Corridor Redevelopment Project Area consists
of approximately 781 acres
and is primarily located
along Bristol Street from
17th Street to Central flu
Avenue and the area east of
Fairview Street along 17th
and 1st Streets. Like many
other north/south corridors
in the City, the Bristol
Corridor is developed
primarily with older strip LOW
commercial uses. Bristol
Corridor was the most
recently adopted of the
Agency's redevelopment
projects and is still impacted
by many of the blighting
conditions identified at
T=FAII
project adoption including
i E30
deterioration, substandard
0, A 9I.T0 E'
Tru
design (obsolescence), and
0017-- EID I MI
impaired investments (low
A1110 F11 II
retail sales and underutilized
19--===?)000 E
land). The Agency's
program of activities
includes infill construction I HE F901
and rehabilitation to
eliminate deterioration,
Liu
obsolescence and improving M-Inun
the economic viability of the K n U P, 10 ILI 0
corridor. C Via PI
Santa Ana Community Redevelopment Agency Irnpl-
r'40 , i n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project'?'< ?.'? Page 17
GOALS AND OBJECTIVES
The goals and objectives have been identified on the basis of the financial resources that are
available, the priorities for addressing conditions in the Merged Project Area, and the limit of
the five-year period to be covered by the Implementation Plan. The achievement of the
Implementation Plan goals and objectives will result in the elimination of blighting conditions in
the Merged Project Area and further the attainment of the redevelopment goals and
objectives. The means for achieving the goals and objectives of the Implementation Plan are
the programs, the specific projects implemented by the programs and expenditures to be
undertaken by the Agency over the five-year term.
In general, the goals and objectives for the Merged Project Area include, but are not limited to:
• Eliminate physical blight.
• Create new employment opportunities.
• Encourage uniform and consistent land use patterns.
• Encourage private commercial/industrial rehabilitation, development, and capital
investment.
• Implement the City's General Plan.
• Encourage highest and best use of available land consistent with the General Plan.
• Provide or replace public streets, alleys, parks, sidewalks, sewers, storm drains, traffic
signals, lighting systems, and other public facilities and improvements as necessary.
• Develop vacant or underutilized industrial land.
• Provide for increased sales, business license, and other fees, taxes, and revenues to the
City of Santa Ana.
• Expand the community's supply of housing, including opportunities for low and
moderate income housing.
• Comply with the affordable housing requirements imposed by the CRL.
Santa 4 rnmunity Redevelopment Agency Inipl rrye i p.Plan July 1, 2C + June 30, 2015
For the ,J Santa Ana Redevelopment Project 91Y8 - 11 Page 18
AGENCY ACCOMPLISHMENTS
As noted, the Agency has been in operation since 1973. During the 37 years that have
followed, it has carried out numerous projects and programs that, both individually and
collectively, have contributed substantially to the elimination of blight as well as the
improvement of social, cultural and economic conditions in Santa Ana. The following is a list of
its more significant activities in each project area.
Central City Redevelopment Project Area
¦ Constructed Artist Village Second Street Promenade improvements including tree lighting,
benches, trash cans and bollards
¦ Facilitated the development of the Olson Live-Work lofts (86 total for-sale units of which six
are affordable)
¦ Renovated Festival Hall
¦ Implemented Facade Rebate Program
¦ Assisted in the relocation and expansion for the Discovery Science Center
¦ Facilitated historic renovation of Parker Garage as new home for Orange County Center of
Contemporary Art (OCCCA)
¦ Completed the California State University, Fullerton Grand Central Art Center
¦ Assisted in the Town Square Condominium Housing Project
¦ Completed Fourth Street Streetscape Improvements
¦ Assisted in the development of Rosswood Villas (senior housing)
¦ Assisted in the development of Main Place Mall
¦ Assisted in the development of Santa Ana Towers (senior
housing)
¦ Developed and implemented a Streetscape and parking plan for
the Main Street Corridor
¦ Facilitated the construction of Memphis Restaurant in Artist
Village
¦ Facilitated Bowers expansion including the Bowers Kidseum
¦ Facilitated the development of the St. Joseph Ballet Project and
relocated to the Museum District
¦ Coordinated construction of the Sycamore Parking Structure
¦ Completed pedestrian signage for the Artist Village
¦ Assisted with the renovation of the historic Phillip Hutton Building Bowers Museum
¦ Assisted with the renovation and reuse of the Fiesta Market Place
¦ Coordinated development of the Artist Village
North Harbor Redevelopment Project Area
¦ Assisted with public infrastructure improvements
¦ Facilitated the development of the Harbor Square commercial center
¦ Facilitated the development of Riverview West Shopping Center (including Wal-Mart)
¦ Assisted with the development of Riverview Apartments and single-family homes
¦ Assisted with the development of the La Bonita condominium project
Santa Ana Community Redevelopment Age 7 rn,9iopthr July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopmena . hA1 L Page 19
¦ Assisted with the development of the California Colony homes
¦ Funded the Commercial/Industrial Rebate Program
South Harbor Redevelopment Proiect Area
¦ Facilitated the development of Waxie Janitorial Supplies Company
¦ Provided a catalyst for street improvements and underground utilities
¦ Assisted with the relocation of Laguna Cookie Co.
¦ Assisted in the relocation of The Art Institute of California - Los Angeles (Orange County
campus)
¦ Funded the Commercial/Industrial Rebate Program
South Main Redevelopment Proiect Area
¦ Assisted with the development of Hutton Centre/Griffin Tower
¦ Facilitated the construction and expansion of new dealerships at the Auto Mall
¦ Assisted in the development of the Doubletree
Hotel
¦ Implemented Commercial/Industrial Rebate
Program
¦ Provided a catalyst for street improvements,
including McFadden realignment
¦ Facilitated Ingram Micro's expansion plans for
PacifiCenter and coordinated efforts between
Ingram, McDonnell Douglas and Catellus to extend
their development rights
¦ Facilitated the relocation of First American Title
Company to MacArthur Place
¦ Facilitated the development of the Nexus project at Hutton Center
¦ Provided assistance to ITT Cannon
¦ Funded construction of the archway sign on South Main
¦ Developed and implemented a storefront fagade improvement program
Inter-City Redevelopment Proiect Area
¦ Assisted with the development of the Business Enterprise Center
¦ Assisted in the development of the Santa Ana Regional Transportation Center (SARTC)
¦ Funded the Commercial and Industrial Rebate Program
¦ Partnered with developer on the construction of the 108 live/work Santiago Street loft
project
¦ Provided a catalyst for street improvements
¦ Assisted Burke Industrial Development
¦ Provided Station District property acquisition and master developer selection
Bristol Redevelopment Proiect Area
¦ Assisted with development of Bristol Marketplace
Santa Ana Community Redevelopment Agency IInp =p?1>n !uly 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project LL? Page 20
Historic South Main Business District Archway
¦ Facilitated the construction of the Digital Media
Center
¦ Provided a catalyst for street improvements
Citywide Affordable Housing Proiects
'lf? ?? ?l l1l?i
¦ Mercy House - The Agency and City assisted in
the rehabilitation of transitional housing units for
homeless persons and persons with HIV/AIDS. Santa Ana College- Digital Media Center
The projects provide housing for seven families
and 20 individuals.
¦ Wilshire-Minnie - The Agency and the City assisted a limited partnership comprised of a
non-profit and a for-profit entity to purchase and rehabilitate seventeen apartment
buildings containing 164 one-bedroom units. As reconfigured, the project contains 143
affordable units and a manager's unit. The units are a mix of one, two, three and four
bedrooms and are affordable to very-low and low income households.
¦ City Gardens - the Agency and the City assisted a non-profit owner to obtain critical bond
financing for the purpose of refinancing and rehabilitating a 274-unit apartment complex.
Twenty percent of the units are restricted to occupancy by very-low income households for
a period of 55 years.
¦ Logan Neighborhood New Construction - The Agency assisted a non-profit corporation to
construct three single-family homes on Agency-owned lots located in the historic Logan
neighborhood. The non-profit developer contracted with the construction arm of another
non-profit to carry out the construction. As a consequence of this partnership,
construction-related training was made available to low-income City residents. The homes
are restricted to occupancy by low income households for a period of 45 years.
¦ Ross & Durant - The Agency and the City assisted a limited partnership comprised of a non-
profit and a for-profit entity to purchase and rehabilitate two apartment buildings, each
containing 24 units. Of the 48 total units, 21 units are restricted to occupancy by very-low
income households and the remaining 27 units are restricted to low income households.
The length of the restrictions is perpetuity.
Ross Street Apartments
¦ Townsend & Raitt - The Agency and City assisted a limited partnership comprised of a
nonprofit and a for-profit entity to purchase and rehabilitate five apartment buildings and
developed a new community center in the troubled Townsend and Raitt area of Santa Ana.
Santa Ana Community Rede, ent Agency Irn14 fstio^P6n July 1, 2010 to June 30, 2.015
For the Merged Santa Ana R, . pment Project Page 21
Of the 51 total units in the five buildings, 50 are restricted to be occupied by very-low
income households, with the remaining unit restricted to occupancy by moderate income
households. The length of the restrictions is 55 years.
Townsend and Raitt Apartments
and new community center
¦ Lacy & Raitt - the Agency and City assisted a limited partnership to purchase and
rehabilitate two apartment buildings with a total of 34 units. All of the units are restricted
to occupancy by very-low income households, and the length of the restrictions is 45 years.
One of the two buildings is located in the Townsend and Raitt area and the Agency's
assistance represents a continuation of its commitment to assist the low income people
residing in the area. The Lacy building is located in the Station District.
¦ Santa Ana Boulevard -The Agency has acquired properties in the City's Station District. The
City has selected a master developer for the area, and the Agency will work with the
developer to insure that its properties are developed in a manner that is consistent with
other development in the area, and in a manner that services the diverse housing needs of
Santa Ana's residents.
¦ Infill Development - The Agency has acquired properties throughout the City for residential
development. The Agency utilized a Request for Proposals process to select qualified
developers interested in working with the Agency on these properties. All will be developed
for residential use, and will offer a mix of bedroom sizes and prices suitable to the diverse
needs of Santa Ana residents. While the majority will be developed for owner occupancy,
four properties will be developed as affordable rental properties that also offer a mix of
bedroom sizes and rents suitable to the diverse needs of Santa Ana residents.
¦ Neighborhood Stabilization - The City has been awarded $15.8 million in federal
Neighborhood Stabilization Program grant funds for the purpose of facilitating the
acquisition, rehabilitation and resale of abandoned and foreclosed homes and apartments.
The City estimates it will be able to produce approximately 194 affordable units with these
funds. Of these, approximately 54 units will be rental units carrying 55-year very-low
income affordability covenants.
¦ Rehabilitation Loan Programs - The Agency and the City offer a variety of loans to income
eligible owners of both conventional and mobile homes to make necessary repairs. Mobile
home funds are offered as forgivable loans with no interest rate, while single-family loans
are offered at below market interest rates. For owners of historic homes, the interest rate
Santa Ana Community Redevelopment Agency IrTiA o t 0 July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Projec1 Page 22
is 1%. Single-family homeowners are also eligible to receive grants for all but $2,500 of the
funds necessary to eliminate hazardous materials such as lead-based paint and asbestos.
During the 2005-09 planning period, more than 80 single-family and mobile homes were
rehabilitated.
¦ Mobile Home Replacement Program - Seven mobile homes were replaced after staff
determined they were not suitable for rehabilitation.
¦ Cornerstone Village - The Cornerstone Village Improvement Program was a partnership
effort between area residents, property owners, the City of Santa Ana and the Santa Ana
Redevelopment Agency. In addition to being visually and physically blighted, Cornerstone
Village suffered from high rates of crime and poverty. A combination of CDBG, HOME and
Tax Increment resources were utilized to reconstruct public infrastructure and to assist with
the rehabilitation of 46 apartment buildings. Property owners formed an association that
remains responsible for the maintenance of common areas while residents formed an
association designed to educate and support area households.
¦ Townsquare - The Townsquare Program involved the utilization of City and Redevelopment
Agency resources to assist a nonprofit corporation to purchase and rehabilitate 70
condominium units in the Townsquare Condominium Project. The Program assisted in the
elimination of blight by reducing the number of abandoned, foreclosed and substandard
units in the area.
¦ RSI New Construction - The Agency assisted a for-profit enterprise to construct two single-
family homes on Agency-owned lots. The project gave the developer an opportunity to
demonstrate how new approaches to home construction can substantially decrease the
time and costs associated with such activities, and to make home ownership more
affordable to low and moderate income households. The homes are restricted to
occupancy by low income households for a period of 45 years.
PROPOSED PROJECTS AND PROGRAMS
To gain public input for the implementation plan, a comprehensive survey* of the City's needs
was distributed in three languages to more than 9,000 stakeholders comprised of residents,
July
1, 2010 to ?, 2015
Santa Ana Coin: - v Redevelopment Agency ImU9_1021n
For the Merge Ana Redevelopment Proj3ge 23
Two new homes constructed by R51 McFadden, LLC
social service providers, and businesses. The survey was also made available on the City's
website and was advertised through public notices in three different languages. From October
15, 2009 to January 15, 2010, the surveys were presented at numerous neighborhood
association meetings and laptops were available to enable residents to enter their survey
responses online. More than 1,500 responses were received.
*This survey was also used for the City's Consolidated Plan, a Federal-mandated plan that
describes needs, resources, priorities and proposed activities to be undertaken with respect to
federal programs.
The survey had seven categories: 1) Business and Jobs; 2) Community Facilities; 3) Community
Services; 4) Housing; 5) Neighborhood Infrastructure; 6) Special Needs Housing; and 7) Special
Needs Services; for the participants to rank in importance from lowest to highest.
The results from the survey concluded that the number one priority of the community is job
creation followed by affordable housing. The following summarizes the community priorities
by category:
¦ Business and Jobs - Employment opportunities for unemployed or underemployed persons;
¦ Housing -Affordable rental housing for large households;
¦ Special Needs Housing - Housing for seniors;
¦ Community Facilities -Accessibility improvements for the disabled;
¦ Community Services - Anti-crime programs; and
¦ Neighborhood Infrastructure - Intersection and pedestrian safety.
The following is a list of desired City improvements identified during the community
information outreach process (in no particular order) and the Agency program that can assist in
addressing the community's needs.
Table 2: Summary of Community Priorities
Affordable Housing and Special Needs Housing Affordable Housing Program
Business and Jobs Economic and Community Development
Program
Community Facilities and Neighborhood Infrastructure Improvements Program
Infrastructure
Community Services and Special Needs Services Public Facility Development Program
As discussed in more detail later in the Implementation Plan under the heading of
"Expenditures", most of the Agency's tax increment, other than Set-Aside deposits, is
Santa Ana Community Redevelopment Agency Im Ttio July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project60 B-2ts Page 24
committed to paying obligations ant, existing bond debt, the proceeds of which have been
expended on projects that have been completed or are committed to projects previously
approved by the Agency or City Council. The Agency will be focusing most of its efforts in the
next five years on meeting its affordable housing obligations. However, some discretionary
revenue is projected to be available or if projected tax increment is greater than anticipated.
Therefore, the Agency has identified four programs which the Agency hopes to implement,
possibly in conjunction with other City programs and funds. The programs are as follows:
¦ Economic/Community Development Program
¦ Public Facility Development Program
¦ Infrastructure Improvement Program
¦ Affordable Housing Program
These programs can address the community's priorities for the betterment of Santa Ana and
address blighting conditions within the Merged Project Area. However, it must be stressed that
given the limited redevelopment revenues and existing obligations, many of the community's
priorities may not be addressed during the next five-year period and those projects and
programs that are implemented may be funded with revenues other than redevelopment tax
increment.
The programs and projects that follow are designed to address the most significant blighting
conditions in the Merged Project Area, and provide additional housing opportunities. Typically,
when the most significant blighting conditions are reduced, private sector investment will occur
leading to additional removal of blight. The Agency's redevelopment programs will therefore
serve as a catalyst to remove blighting conditions and spur private investment and the
preservation, improvement, creation and maintenance of affordable housing.
Projects and programs are often initiated in response to stakeholders, including developer and
owner requests. The Agency also proactively plans for blight elimination, which may involve
soliciting proposals for specific development sites. When the Agency participates in a project,
the Agency and developer/owner enter into either a Disposition and Development Agreement
or Owner Participation Agreement to assure that the project is implemented in accordance
with the agreed upon plan, and that the Agency's goals and objectives for blight elimination are
attained. In some instances, such as affordable housing, the agreements specify the
affordability restrictions to be placed on the affordable units.
The following describes the projects currently associated with each of these four programs that
are anticipated to be carried out during this Implementation Plan period.
Economic/Community Development Program
The Economic/Community Development program will consist of the Agency enhancing the
Merged Project Area by assisting in the commercial and industrial rehabilitation/development
through business retention/attraction, rehabilitation loans, tax allocation bond financing and
site assemblage. The Agency's efforts in this program will provide new and expanded
.na Community Redevelopment Agency Imq?ry,? tir?P6n J.. 010 to June 30, 2015
Merged Santa Ana Redevelopment Project - page 25
opportunities to existing businesses as well as encourage the revitalization o9 the proposed
Merged Project Area through new commercial and industrial development/rehabilitation.
Rehabilitation loans provided by the Agency could also assist in the preservation of historic
structures through rehabilitation, relocation and reuse. The Agency will primarily assist private
developers in the development/redevelopment of vacant, underutilized and blighted
properties.
Grand Central Building'
The Grand Central Building is a historic building that has been readapted as a live/work place
for students attending California State University, Fullerton. The Agency will continue to
contribute toward the renovation of the building including replacing the HVAC.
State Enterprise Zone
The Agency administers a State Enterprise Zone program (boundaries significantly overlap
Merged Project Area) that assists businesses in securing sales, use and hiring tax credits for
employing disadvantaged individuals, as well as other tax advantages. Through the Enterprise
Zone, approximately 20,000 jobs have been "vouchered" for Santa Ana businesses. Other
incentives included tax-exempt bond financing.
Station District Development'
The District incorporates a 94-acre area that will link neighborhoods and businesses with public
transit along Santa Ana Boulevard from the 1-5 freeway into the Downtown area. Related
California/Griffin Realty were selected as master developer in 2009. Extensive community
meetings, site and market analysis have resulted in a concept plan for the 6.8-acre first phase,
which is going through the entitlement process. This project will replace deteriorated buildings,
incompatible uses and underutilized sites with new residential units and potentially, a school
and park.
Expansion and Improvement at the Westfield MainPlace Shopping Center
Regional malls such as MainPlace are always looking at innovative new ways of doing business
in order to thrive in a highly competitive marketplace. Therefore, MainPlace continues to look
at possible expansion and remodeling plans to the mall.
Santa Ana Auto Mall Expansion
This is a business expansion and retention effort.
There are currently eight new car dealerships in
the mall. The Agency is assisting the expansion of
the BMW showroom and service area. Honda's
expansion is in the planning phase. A renovation
to the mall's interior including new signage and
landscaping is complete.
1 Included in the "Capital Projects" and as identified as an existing obligation and shown in Table 5 "Anticipated
Expenditures (FY 2010/11-FY 2014/15)". These are projects for which funding was previously allocated in the
Agency's FY 2010-11 budget.
Santa Ana Community Redevelopme •,Cy Im
P ,6L do P n July 1,2010 to June 30, 2015'
For the Merged Santa Ana Redeveiol rojectD1§_?U Page 26
South Main FaVade Improvement Program
This program is available to property owners and tenants interested in rehabilitating
commercial and retail properties located within the South Main Business District, which runs
from First Street to Warner. The program was created to fund exterior fagade and other on-site
property improvements to improve the appearance of the buildings and properties. The
program comes in the form of a cash rebate.
Downtown Storefront FaVade Improvement Program
Similar to the South Main Facade Improvement Program the Downtown Fagade Improvement
Program provides a cash rebate for tenants and property owners who wish to improve the
appearance of their properties through fagade treatments and other property improvements.
Public Facility Development Program
Public facility-based projects focus on the need for new or improved public facilities such as
recreation uses, community centers, cultural centers and facilities that may include police
substations. This program will enhance the Merged Project Area as a place to conduct business
and live. The construction of certain recreation facilities and police substations will also have
the benefit of reducing crime and increasing public safety.
Expansion of the Discovery Science Center (Museum District-,)
The Agency entered into an agreement with the Discovery Science Center for the expansion of
their facility. Current efforts are focusing on helping DSC obtain financing for the next state of
this multi-phase expansion. The Discovery Science Center is Orange County's largest non-profit
education resource dedicated to educating young minds in the appreciation of science, math
and technology through interactive exhibits and programs.
Regional Transportation Building"
The Santa Ana Regional Transportation Building (train depot) is proposed for renovation and
expansion. The expanded facility with be the home for the "60 Local" which will be light rail
that will service the City of Santa Ana.
YMCA Building-,
The YMCA Building is a National Register historic building. The building is currently vacant and
in a state of disrepair. The Agency proposes to fund the rehabilitation of the structure for
reuse. A possible tenant is the Orange County High School for the Arts.
OCTA Building-,
The Orange County Transportation Authority (OCTA) building is a former bus terminal. The
Agency, in partnership with OCTA, will be soliciting proposals for a food/retail court on the
property to serve visitors and employees of the Downtown and surrounding area.
Santa Ana Community Redevelopment Agency Imp r i do P ?n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Projecdy ? r Page 27
Bowers Museum of Cultural Arts
The Agency has worked with the Bowers Museum over the past years in providing
rehabilitation of existing and expansion of facilities to allow for cultural growth in the
community. The Agency continues to partner with Bowers to achieve these endeavors.
Improvements of Public Parking Garages
During the next five years, the Agency will assist with enhancing our public parking garages
consisting of five in the downtown area and one adjacent to the Santa Ana Regional
Transportation Center. These garages provide much needed support to the continued success
of the Downtown and the SARTC.
Infrastructure Improvements Program
Infrastructure improvements include projects that will assist with the future development of
the Merged Project Area. By facilitating new development the Agency will eliminate
deterioration and obsolescence. Traffic improvements and street lighting will also enhance
public safety and reduce crime. Infrastructure improvements may include, but are not limited
to, the following:
• Transportation and circulation improvements which may entail street widening,
construction of street medians, land configuration, street maintenance, improved traffic
signalization and signage;
• Sewer improvements to alleviate infrastructure inadequacies, meet flow requirements
and ensure public safety;
• Storm drain improvements including capacity for existing and new development to
ensure proper drainage and on-going street improvements of Merged Project Area
streets; and
• Public infrastructure improvements including sidewalks, curbs and gutters,
streetscape/landscape improvements, public transit improvements, public parking
structures, creating pedestrian links and developing enhanced parkways and sidewalks,
and providing access to the disabled.
Downtown Wayfinding Signage Program'
This program funds the development of signs to direct cars and pedestrians to shopping,
cultural and service destinations within the Merged Project Area. This program will evaluate
existing vehicular and pedestrian way finding signs in downtown Santa Ana and provide input
for a potential redesign and enhancement of current way finding sign program.
Parking Lot Improvements'
The Agency plans on making major upgrades to the City-owned parking lots including repaving,
adding energy efficient lighting, replacing landscaping, repainting, and upgraded security
measures.
Santa Ana Community :?'opment Agency irnpl&nig ioO an July 1, 2010 to June 30, "
For the Merged Santa . c.tevelopment Proj Ur tect1 pa -
Affordable Housing Program
The Agency's Affordable Housing Program includes the following components:
Multi family Acquisition Rehabilitation
In partnership with various non-profit and for-profit developers, the Agency anticipates
continuing an acquisition and rehabilitation program for multi-family properties. The selected
developers will be responsible for the rehabilitation and ongoing management of these
projects, and the projects will be subject to income and affordability covenants that will remain
in place for a minimum of 55 years. The Agency will provide assistance to the projects to fill the
gap created by the covenants.
Neighborhood Stabilization Program (NSP 1 & 2)
This program stabilizes transitional neighborhoods through the improvement of existing
residential structures and preservation of existing stock. The Program provides assistance to
low and moderate income households throughout Santa Ana and also eliminates blighting
conditions in targeted neighborhoods by increasing on-site management, reducing
overcrowding and rehabilitating rental housing units. The following map reflects both NSP 1
and NSP 2 geographical target areas.
This program will utilize Federal funds to acquire and redevelop foreclosed residential
properties that might otherwise become sources of blight within their communities. The single-
Santa Ana Community Redevelopment Agency Imp i July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project b'84? page 29
family homes are sold to households that are 120% of the area median income (AMI) or less.
The City is using 25% of the grant as required to create affordable rental units for families at
50% of the AMI or below.
Single-family Residential Rehabilitation
The City's Community Development Agency administers rehabilitation programs funded with
HOME and CDBG funds provided by the United States Department of Housing and Urban
Development (HUD), CalHOME Program funds provided by the California Department of
Housing and Community Development, and Set-Aside funds. The Program is available citywide
to very-low, low and moderate income households. The majority of the assistance is provided
to households in the very-low and low income range. These loans are typically in the amount of
$20,000 to $30,000.
New Residential Construction
The Agency plans to undertake a large scale specific plan development in the Station District
area. It is currently anticipated that this area will be developed with a mix of for-sale and rental
projects that will serve very-low, low and moderate income households. It is also anticipated
that this project will be implemented in multiple phases over the Implementation Plan period.
A developer has been selected, and they are currently working with the community to identify
the most appropriate developments for each available site.
The Agency has entered into partnerships with several developers to develop 12 vacant parcels
located throughout Santa Ana that are currently owned by the City or Agency. It is anticipated
that these projects will be a mix of single-family homes and rental units affordable to low and
moderate income households.
Eight sites will accommodate the development of approximately 20 single-family homes. The
remaining four sites will accommodate the development of up to 20 rental units.
Mobile Home Rehabilitation
The 29 mobile home parks in Santa Ana serve a substantial number of very-low income seniors.
To meet their needs, the Agency plans to continue offering its Mobile Home Hardship Loan
Program that offers seniors and disabled households forgivable loans of up to $5,000 to pay for
essential repairs.
Santa ,
For the
.iiunity Redevelopment Agency ImpUlgio I?? July 1, ,`t J_me 30, 2015
1 Santa Ana Redevelopment Project 74XIc+1 34 Page 30
Rendering of Birch Street Project Proposal
Preservation of Affordable Units
There are several affordable housing complexes with expiring affordable housing covenants in
Santa Ana that the Agency will consider assisting in order to preserve affordable housing.
The following summarizes the total affordable housing development projected by the Agency
for the period between FY 2011 and FY 2015.
Table 3: Projected Affordable Housing Development (FY 2010/11- FY 2014/15)
Station District 75 2011
1410 Durant 14 2010
Vista Del Rio 41 2011
Infill Development -Rental 20 2011
Infill Development Site - For-Sale 20 2011
Other Rental Projects 60 2013
Total Affordable Units 230
REDEVELOPMENT EXPENDITURES
BACKGROUND
The Agency has the legal authority and flexibility to implement the revitalization of the Merged
Project Area utilizing any or all of the following revenue sources: (1) city; (2) state; (3) federal
government; (4) tax increment funds in accordance with provisions of the existing CRL; (5) new
tax allocation bonds; (6) interest income; (7) loans from private financial institutions; (8) lease
or sale of Agency-owned property; (9) donations; (10) developer payments, and (11) any other
legally available public or private sources.
Current provisions of the CRL provide authority to the Agency to create indebtedness, issue
bonds, borrow funds or obtain advances in implementing and carrying out the specific intents
of a redevelopment plan. The Agency is authorized to fund the principal and interest on the
indebtedness, bond issues, borrowed funds or advances from tax increment revenue and any
other funds available to the Agency. To the extent that it is able to do so, the City may also
supply additional assistance through City loans or grants for various public facilities or other
project costs.
The redevelopment programs described previously in this section outline a set of activities to
be implemented by the Agency for the purpose of facilitating private reinvestment in the
Merged Project Area, eliminating physical and economic blighting influences. For purposes of
this analysis, Affordable Housing Fund revenues and their related expenditures are presented in
the Housing Component section.
Santa Ana Community Redevelopment Age 009-'c3t n
Forthe Merged Santa Ana Redevelopment July 1, 2010 to June 30, 2015
Page 31
The Goals and Objectives and Projeccs, Programs and Expenditures included in this
Implementation Plan reflect the financial constraints of the Agency to implementing the
Redevelopment Plan over the five-year term of the Implementation Plan. As mentioned earlier
and shown below, over the next five-year period the Agency's revenues have been committed
to paying existing debt. As a result, the Agency has very little latitude with the discretionary
actions that it may undertake. Agency discretionary actions will be primarily limited to assisting
developers or owners that can front the costs for development on projects that are not
financially feasible with the agreement that the developer will be repaid from tax increment
generated from the proposed development. Should substantial new development occur or
property sales that exceed current trends, there may be additional discretionary revenues
available to fund projects.
REVENUES
At the time a Redevelopment Plan is adopted for a project area, the taxes generated from
taxable value of property in the area (often referred to as the base year value) continue to be
distributed to each of the taxing entities, which levy a property tax in the Merged Project Area.
The property taxes that occur due to growth in taxable value above the base year value are
allocated to the redevelopment agency. This amount is commonly referred to as tax increment
revenues.
Over the five-year period from FY 2010-11 to FY 2014-15, the Gross Tax Increment Revenue is
projected to total $268.4 million. From this amount, the Agency is required under
Redevelopment Law to set aside 20 percent of the Gross Tax Increment Revenue to be spent on
affordable housing. The Agency sets asides more than the required 20 percent and the
projected deposit to the Housing Fund amounts to $69.7 million for the period. Additional
contractual and statutorily mandated pass through allocations to various affected taxing
agencies are also made and are projected to amount to $56.9 million for the period. The County
is projected to collect an additional $1.5 million for County administrative overhead expenses
allowed under SB 2557 for the period. The resulting Net Tax Increment Revenue remaining for
Agency debt payments, administration and capital improvement expenditures is projected to
total $140.3 million.
Santa / Sri nunit Redevelopment A enc Im i do P Jul 1, 2, ?" 't, vJune 30, 2015
For tnea Santa Ana Redelopmennt Project rg- dn y ,c Page 32
60
000 5-Year Implementation Plan - Tax Increment
- A!lOS?tion
,
50,000 z ; a . -....
_ L
.
O
40
000
?
`
, -
- .? --
0
0
30,000 - -
E
c
F 20,000 -
10,000 - --
0 ------ ... ...... -
2010-11 2011-12 2012-13 2013-14 2014-15
Fiscal Year i Housing Set Aside
¦ Paid to Taxing Entities
Redevelopment law requires 20 percent of the gross tax increment, which is referred to as Set-
Aside, to be spent on affordable housing. However, as a result of a settlement agreement in
the South Main Project Area (Peebler settlement), the Agency sets aside a larger percentage of
the gross tax increment; this amounts to $69.7 million set aside for low and moderate income
housing, plus $12.1 million from the Peebler settlement, out of the $268.4 million gross tax
increment projected over the next five years.
Under the terms of a 1982 settlement resulting from litigation entitled Gerald Peebler, et.al. vs.
City of Santa Ana, OCSC No. 38-58-59, the Agency agreed to annually set aside 20% of non-
housing tax increments generated by the South Main Project Area, to be dedicated to the
improvement and support of the commercial areas within the corridor along Main Street
between First and Warner and the south side of First Street between Parton and Standard. Such
improvements may include various public improvements, public parking funding and other
commercial financial incentives. The annual set aside is deposited into what is referred to as the
South Main 20% Commercial Corridor Fund.
Santa Ana Community Redevelopment Agei is do P n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Fr?? Paga 33
The Merged Project Area's net tax increment revenues are estimated at $30.1 million for FY
2009-10 (net of County administrative fees, Set-Aside, and contractual and statutory pass
through obligations). Over the five-year period, the Agency is projected to receive
approximately $140.3 million in net tax increment revenues, the majority of which is obligated
to repay debt. The revenues anticipated to be generated in the Merged Project Area over the
next five years are identified in Table 4.
Table 4: Anticipated Revenues (FY 2011- FY 2015)
NOW,
Net Tax Increment $140,276,000
Interest Earnings 1,881,000
Carry-Over Funds for SERAF z 3,680,000
Total Revenues $145,837,000
EXISTING OBLIGATIONS
Agency Bond Debt Service
The Agency will continue to make principal and interest payments on the 1989 Tax Allocation
Refunding Bonds (Central City, Inter-City and South Harbor Project Areas) and the 2003 Tax
Allocation Bonds (South Main Project Area). Over the next five years the amount of 1989 bond
debt service will total approximately $47.7 million and the amount of 2003 bond debt service
will total approximately $21.1 million.
Transfers In (Credit)
The Santa Ana Financing Authority issued 1998 Refunding Revenue Bonds, Series A, B, C and D
for the purpose of using the net proceeds to purchase the Agency's 1989 Tax Allocation
Refunding Bonds, Series A, B, C and E referenced above. This enabled the Agency to realize a
savings of $1.2 million in annual debt service payments by utilizing the leverage of pooling
funds permitted by Mello Roos bonds. Over the next five years, the Financing Authority bond
debt service will total approximately $41.5 million, providing the Agency with a cumulative
savings of approximately $6.2 million over the same period.
Supplemental Educational Revenue Augmentation Fund (SERAF)
The California State Legislature adopted Assembly Bill 26-4x to take $1.7 billion from local
redevelopment funds in FY 2009-10 and an additional $350 million in FY 2010-11, and shift the
tax increment funds to the SERAF to offset State deficits to K-12 schools. On May 10, 2010, the
Agency paid the state $17,889,256. For FY 2010-11, the Agency's exposure is estimated to be
$3,680,000.
A lawsuit filed with the Sacramento Superior Court by the. California Redevelopment
Association challenging the constitutionality of AB 26-4x was denied by the court. The FY 2009-
10 SERAF payment was funded from a $3,680,000 borrowing of the FY 2009-10 Housing Set-
2 To make the required SERAF payment to the State of California in FY 2010-11, the Agency intends to fund the
demand from anticipated carry-over funds available to the Merged Project Area.
Santa Ana Community Redevelopment Agency Imp do July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project ot- Page 34
Aside and the balance of $14,209,000 funded from other Agency resources, including the South
Main 20% Commercial Corridor Fund. The amount borrowed from the FY 2009-10 Housing Set-
Aside Fund and prior year Affordable Housing Fund borrowings for previous ERAF obligations is
anticipated to be repaid on a basis subordinate to Agency debt obligations by FY 2015-16. The
repayment to the Housing Fund over the next five years is projected to total $8,036,000.
Future year demands from the State are not assumed in the projection.
In order to fund the FY 2009-10 SERAF demand from the State, it was necessary for the Agency
to borrow $6,302,827 from the South Main 20% Commercial Corridor Fund. The Agency intends
to repay the amount borrowed commencing in FY 2011-12 through FY 2016-17. Based upon this
plan, the Fund is scheduled to receive $3.3 million over the next five years.
Administration
The projected cost to administer the redevelopment program for the Merged Project Area over
the next five years is based on the Agency's budget of $4,932,000 for FY 2010-11 (based on
Agency administrative costs that are funded solely from tax increment revenue). Subsequent
year administrative costs are projected to increase by an assumed three percent cost of living
factor over the term of the projection. The tax increment funded administrative costs over the
next five years are anticipated to total approximately $26.2 million.
Contractual Obligations and Subsidies
The Agency annually budgets for various existing contractual obligations unique to specific
Project Areas as well as those of the Agency as a whole. These annual obligations include
trustee fees, economic development obligations, debt service on Certificates of Participation,
and debt repayments related to site-specific projects. In all, the Agency's contractual
obligations amount to approximately $21.8 million over the next five years.
Capital Projects
Existing budgeted capital improvement projects identified in the Agency's FY 2010-11 budget
reflects various anticipated capital improvements of the Agency, including budgeted costs
associated with capital funding of the Grand Central Building, Regional Transportation building,
Downtown, Museum District, Downtown Wayfinding Signage program, OCTA building, Station
District, YMCA building and various parking lot improvements. An additional $750,000 is
budgeted in FY 2010-11 for commercial fagade rehabilitation rebates in the Downtown area.
The total cost for these FY 2010-11 budgeted capital improvements is approximately $2.4
million. Specific costs for other subsequent projects have not been identified other than what
have been reflected in the FY 2010-11 budget.
To the extent annual resources, in excess of the noted expenditures, become available to the
Merged Project Area, such discretionary resources may be used to fund other capital
improvement opportunities that may arise in subsequent fiscal years or may be used for
ongoing commercial fagade improvement assistance Downtown. Based upon the forecast and
inclusive of the $2.4 million already budgeted for specific capital improvements in FY 2010-11,
over the next five years up to $8 million may be available for capital project improvements in
the Merged Project Area.
Santa Ana Community Redeve 1- it Agency Imp6y,e, tio?bn July 1, 2010 to June 30,201-5---'
For the Merged Santa Ana RE , pment Project y Page 35
Future Loan Repayments
Although not projected during the five-year Implementation Plan period, there is the potential
for cash deficits, requiring short-term loans.
However, to the extent unforeseen declines in tax increment revenue occur, future deficits may
be funded from other Agency financing sources as necessary, with such loans advanced to the
Agency to meet any future cash deficits, and repaid on a pay-as-you-go basis in subsequent
fiscal years.
The anticipated projects, programs or activities that the Agency may undertake as future
resources, were presented above.
Table 5: Anticipated Expenditures (FY 2010/11- FY 2014/15)
Bond Debt Service $68,889,000
Transfers In (1998 vs. 19889 DS Credit) (6,203,000)
SERAF 2010-11 Payment 3,680,000
ERAF & SERAF Housing Fund Repayment 8,036,000
ERAF & SERAF So. Main Comml Corridor Fund 3,303,000
Repayment
Administration 26,186,000
Contractual Obligations 21,803,000
Capital Projects 8,030,000
So. Main 20% Commercial Corridor Fund 12,113,000
Total Expenditures 145,837,000
A summary of the cash flow of the Agency over the term of this Implementation Plan is shown
in Table 6.
Table 6: Projected Agency Cash Flow (FY 2010/11- FY 2014/15)
Tax Increment & Interest Earnings $142,157,000
Carry-Over Funds for SERAF 2010-11 Payment 3,680,000
Total Revenues 145,837,000
(Less) Total Expenditures (145,837,000)
Revenues Available for Discretionary Projects $0
RELATIONSHIP BETWEEN GOALS AND OBJECTIVES, PROGRAMS, PROJECTS AND EXPENDITURES
The achievement of the Implementation Plan Goals and Objectives (through the specific
projects, programs and expenditures) will partially eliminate blighting conditions within the
Merged Project Area. This Implementation Plan does not attempt to outline a plan to eliminate
Santa Ana Community Redevelopment Agency Imp July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project ?T0C 30
Page
all blight in the Merged Project Area, but rather addresses how the Agency intends to
contribute to the elimination of blight within the Merged Project Area.
In summary, the Agency proposes to focus its activities on eliminating physical and economic
blight conditions through the construction of public improvements and assisting the private
sector in developing vacant and/or underutilized properties. It is the Agency's hope and intent
that the Redevelopment Implementation Plan as proposed, if fully implemented, will encourage
further private sector investment in commercial designated areas. Table 7 shows the
relationship between the Agency's goals and objectives, and projects and programs for the
elimination of Blight.
Santa Ana Coi Redevelopment Agency ImpJ,r r ? t 04in
For the Merge Ana Redevelopment Project114X4X11 44
July 1, 2010 to.i- , 2015
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Ill. AFFORDABLE HOUSING COMPONENT
The Agency's primary goal is to comply with the affordable housing requirements imposed by
the CRL in a responsible manner. The affordable housing activities identified in the
Implementation Plan will be undertaken over the duration of the Redevelopment Plan for the
Merged Project Areas, and will ensure that the Agency is in compliance with the CRL.
The CRL requires that certain housing requirements be fulfilled during five- and 10-year
increments; and over the remaining Merged Project Area life. Specifically, the inclusionary
housing production requirement must be met every 10 years, and over the life of the Merged
Project Area. Comparatively, the proportionality tests must be achieved between January 1,
2002 and December 31, 2014, and then again in 10-year increments throughout the Merged
Project Area life.
A. APPLICABLE AFFORDABLE HOUSING REQUIREMENTS
CALIFORNIA REDEVELOPMENT LAw REQUIREMENTS
A California redevelopment agency has three primary responsibilities relative to affordable
housing:
¦ To deposit and expend a percentage of tax increment revenue for the provision of
affordable housing (Housing Set-Aside Requirement) into a separate fund (Affordable
Housing Fund).
¦ To cause specified percentages of new or rehabilitated housing units in a Merged Project
Area to be available at affordable housing cost (Inclusionary Housing Production
Requirement).
¦ To replace affordable housing units removed from the housing stock as a result of
redevelopment activities (Replacement Housing Requirement).
Santa Ana Community Redevelopm
For the Merged Santa Aria Redevelc
'i,cy ImpJ?ny?i6o Plan
Project ?Af.11 4/
July 1, 2010 to June 30, 2015
Page 40
1
B. AFFORDABLE HOUSING FUND STATUS
A five-year implementation plan must address the redevelopment agency's performance
relative to each of these responsibilities in enough detail to evaluate the Agency's performance
for each of the five years. This includes the following:
¦ Plans for using annual deposits into the Housing Set-Aside Fund.
- Affordable Housing Funds must be spent on very-low, low and moderate income
housing projects in proportion to the unmet need for housing as defined in Government
Code Section 65584 (Income Targeting Requirement)
- A cap is applied to the amount of Affordable Housing Funds that can be spent on
housing that is subject to age restrictions (Age Restriction Requirement)
¦ Identification of planned projects that will result in the destruction of existing affordable
housing and identification of proposed locations for housing to replace units removed for
project activities (Replacement Housing Requirement).
¦ Estimates of new housing units to be constructed within the Merged Project Area if adopted
after 1975 and both a five-year and a 10-year plan to produce affordable housing in
response to new housing production (Inclusionary Housing Production Requirement).
¦ Many affordable housing practitioners in California have concluded that redevelopment
agencies can use one unit to fulfill both the replacement housing and the inclusionary
housing production requirements imposed by Section 33413. However, in the interest of a
conservative approach, the Agency has made the policy decision not to double count units
toward the defined replacement housing and inclusionary housing production
requirements.
¦ An explanation of how the goals, objectives, projects and expenditures will implement the
low and moderate income affordable housing fund and housing production requirements.
¦ A new requirement of the law, Section 33490(a)(2)(C)(iv) of the CRL is to identify the
amount of Affordable Housing Funds used to assist extremely-low, very-low, and low
income units during the previous implementation plan period:
Extremely Low Income Units $93,241
Very-Low Income Units 14,254,304
Low Income Units 8,467,420
Total Assistance 522.814.965
Santa Ana Community Redevelopment Agency Impjrzr tioryP n n July 1, 2010 to June 30, 2015
For, the Merged Santa Ana Redevelopment ProjectlX?F1?d1 -44 Page 41
The law also requires agencies to identify the amount of Affordable Housing Funds used to:
• Assist units available to families with children: $24,299,855
• Identify the family units assisted (location, number of units, affordability level and
assistance amount):
1205 E. Wilshire Blvd 0 58 85 143 $8,100,000
1411 N. Durant St 0 11 13 24 2,043,924
1501 N. Ross St 0 18 6 24 3,006,890
1505 N. Bush St 0 0 3 3 31,361
701 S. Townsend St 0 10 0 10 1,200,326
702 S. Raitt St 1 7 0 8 806,265
703 N. Lacy St 1 25 0 26 1,556,217
709 S. Townsend St 0 10 0 10 1,063,898
817 S. Townsend St 0 10 0 10 1,333,201
821 S. Townsend St 0 10 0 10 1,436,203
834 S. Raitt St 0 9 0 9 1,365,662
1006 N. Logan 0 0 1 1 616,954
1012 N. Logan 0 0 1 1 772,223
1015 N. Logan 0 0 1 1 744,223
1112 S. Orange 0 0 1 1 111,239
118 S. Orange 0 0 1 1 111,239
Totals 2 168 112 282 $24,299,855
• Identify the extremely-low, very-low and low income units, restricted with 55-year
(rental) or 45-year (ownership) affordability restrictions, produced with local subsidy
other than Affordable Housing Funds:
AFFORDABLE HOUSING FUND DEPOSITS
The Affordable Housing Fund revenues shown in Table 7 include the following:
¦ The estimated gross property tax increment generated within the Merged Project Area
allocated to the Affordable Housing Fund.
¦ Interest income from balances in the Affordable Housing Fund.
Santa Ana Commun ? ;velo ment Agency Im I m n tion/?I n July 1, 2010 to June
For the Merged Sant ?development Project IUJJ
¦ Rental income and lease income.
¦ Repayments on existing residual receipts and individual loans.
¦ Repayments of previous SERAF Payments from the Affordable Housing Fund.
The projected revenue streams for the Affordable Housing Fund can be summarized as follows:
Table 8: Projected Affordable Housing Fund Revenues (FY 2010/11- FY 2014/15)
Set-Aside Deposits $13,573,000 $13,691,000 $13,835,000 $14,120,000 $14,411,000 $69,630,000
Interest Income 500,000 500,000 500,000 500,000 500,000 2,500,000
Rental/Lease Income 85,000 85,000 85,000 85,000 85,000 425,000
Loan Repayments 633,000 633,000 633,000 633,000 633,000 3,165,000
SERAF/ERF 1,500,000 1,634,000 1,634,000 1,634,000 1,634,000 8,036,000
Repayments
Total Revenues $16,291,000 $16,543,000 $16,687,000 $16,972,000 $17,263,000 $83,756,000
USE OF AFFORDABLE HOUSING FUND DEPOSITS
The Agency is projected to incur the following costs during the Implementation Plan period:
Housing Rehabilitation
The Agency anticipates expending $4.8 million on the Housing Rehabilitation Program during
the Implementation Plan period.
Land Purchase / Other / Relocation Costs
The Agency has budgeted $6.5 million for land acquisition costs during the five-year period.
Projects & Programs
A total of $54.0 million is budgeted during the Implementation Plan period for various projects
and programs.
Administrative Expenses
Costs such as salaries; overhead; consultant and legal fees; and supplies will be incurred to
implement the Affordable Housing Program. The cash flow projection includes annual estimates
through Fiscal Year 2014/15 which total to $14.7 million during the Implementation Plan
period. The actual expenditures must be determined each year and may differ from this plan's
projections.
Debt Service
The Agency obtained a HELP Loan from the California Housing Finance Agency. The remaining
balance on this loan is $403,000 and the Agency expects to repay it in FY 2010-11. The Agency
will continue to evaluate funding mechanisms, which may include issuing housing bonds.
Santa Ana Community Redevelopment Agency Im i ? n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project 68-4 Page 43
The projected Affordable Housing Fund expenditures during the Implementation Plan period
can be summarized as follows:
Table 9: Projected Affordable Housing Fund Expenditures (FY 2011- FY 2015)
Housing Rehabilitation $300,000 $500,000 $1,000,000 $1,500,000 $1,500,000 $4,800,000
Land Purchase 2,500,000 1,000,000 1,000,000 1,000,000 1,000,000 6,500,000
Projects & Programs 12,000,000 12,000,000 10,000,000 10,000,000 10,000,000 54,000,000
Planning & Administration 2,763,000 2,846,000 2,931,000 3,019,000 3,110,000 14,669,000
Debt Service 403,000 0 0 0 0 403,000
Total Expenditures $17,966,000 $16,749,000 $14,931,000 $15,519,000 $15,610,000 $80,372,000
The Affordable Housing Fund expenditures are projected to total $80.4 million for the five-year
period and are summarized in Figure 1:
Projected Affordable Housing Fund Expenditures
FY 2010/11- FY 2014/15
Housing
Rnhnhilitnti-
Land Purcl
Other,
Relocation
6,500,000
Debt Service
403,000
1%
AFFORDABLE HOUSING FUND CASH FLOW ANALYSIS
This Implementation Plan provides an illustrative example of how the Affordable Housing
Program could be financed on an annual basis over the remaining term of the Merged Project
Area. However, the timing and specific amounts of both revenues and expenditures may be
adjusted over time. Specific decisions on each of these items will be made as part of the
Agency's annual budget process.
Santa ?iii-nunity Redevelopment Agency Imp n e gionA?P n July 1, - Tune 30, 2.015
For th d Santa Aria Redevelopment Project -48 Page 44
The cash flow projected to be generated by the Affordable Housing Fund is summarized below:
Table 10: Projected Affordable Housing Fund Cash Flow (FY 2010/11- FY 2014/15)
-..-... ?' ?, ? T ?! T ? 7 ?•? 74.# ? ?T? ?? S: ?T? Ivy
Beginning Balance $50,301,000 $48,626,000 $48,823,000 $50,579,000 $52,032,000
Total Revenues 16,291,000 16,543,000 16,687,000 16,972,000 17,263,000
(Less) Expenditures (17,966,000) (16,346,000) (14,931,000) (15,519,000) (15,610,000)
Ending Balance $48,626,000 $48,823,000 $50,579,000 $52,032,000 $53,685,000
PROPORTIONAL EXPENDITURES OF AFFORDABLE HOUSING FUND
The Merged Project Area is subject to the Section 33334.4 requirement that a redevelopment
agency expend Affordable Housing Funds in accordance with an income proportionality test
and an age restriction proportionality test. These proportionality tests must be met between
January 1, 2002 and December 31, 2014, and then again through the termination of the
Merged Project Area. The results of the proportionality test are described in the following
sections.
Income Targeting Proportionality Test
The income targeting proportionality test requires a redevelopment agency to expend
Affordable Housing Funds in proportion to the unmet housing needs that have been identified
for the community pursuant to Government Code Section 65584. The proportionality test used
in this report is based on the 2006 - 2014 Regional Housing Needs Assessment (RHNA) figure
prepared by the Southern California Association of Governments (SCAG), which covers the time
period of this Implementation Plan.
The RHNA established the following unmet need for affordable housing in the City of Santa Ana.
Table 11: Income Targeting Requirements
Very-Low Income 2,710 39% At Least 39%
Low Income 1,639 23% At Least 23%
Moderate Income 2,625 38% At Most 38%
Totals 6,974 100%
To comply with the Section 33334.4 requirements, the Agency must spend at least 39% of the
Affordable Housing Funds on projects and programs dedicated to very-low income households,
and no more than 38% of the Housing Funds on projects and programs dedicated to moderate
income households. Section 33334.4 provides the Agency with the flexibility to allocate
Affordable Housing Funds in any way that complies with the defined minimum for very-low
income expenditures and the defined cap for moderate income expenditures.
Santa Ana Community Redevelopment Age :t,. n do P n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment. W b-49 Page 45
Section 33334.4 allows the Agency to expend a disproportionate amount of the Housing Funds
for very-low income households, and to subtract a commensurate amount from the low and/or
moderate income thresholds. Similarly, the Agency can provide a disproportionate amount of
funding for low income housing by reducing the amount of funds allocated to moderate income
households. In no case can the expenditures for moderate income households exceed the
established threshold.
The following summarizes the actual expenditures incurred by the Agency between January 1,
2002 and June 30, 2010:
Table 12: Actual Expenditures (1/1/2002 - 6/30/2010)
Very-Low Income $32,057,000 47%
Low Income 16,031,000 26%
Moderate Income 8,126,000 27%
Totals $56,214,000 100%
The following summarizes the income category allocations of the proposed expenditures for
July 1, 2011 through December 31, 2014:
Table 13: Proposed Expenditures (7/1/2010 -12/31/2014)
FY 2011 $5,805,000 $3,485,000 $5,510,000 $14,800,000
FY 2012 5,265,000 3,105,000 5,130,000 13,500,000
FY 2013 4,680,000 2,760,000 4,560,000 12,000,000
FY 2014 4,875,000 2,875,000 4,750,000 12,500,000
July 1- Dec. 1, 2014 4,875,000 2,875,000 4,750,000 12,500,000
Total Expenditures $25,500,000 $15,100,000 $24,700,000 $65,300,000
% of Total Expenditures 39% 23% 38% 100%
Santa Ana Community Redevelopment Agency Imp do n IJ.rly 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project9rot-OU -'L Page 46
By the end of the obligation period, it is anticipated that the Agency expenditures, totaling
$121.5 million, will have allocated 47% of the Affordable Housing Fund's project and program
expenditures to very-low income households, 26% of the funds to low income households and
27% of the funds to moderate income households, summarized below:
Figure 2: Income Targeting Proportionality Test
(1/1/2002 -12/31/2014)
These expenditures match the current proportionality requirements, and thus, the Agency is
anticipated to meet the income targeting standards imposed by Section 33334.4.
Santa Ana Community Rede\! ^ of Agency Imp i _ I n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Re ,ment Project Page 47 .
Age Restricted Proportionality Test
Section 33334.4 also requires redevelopment agencies to cap assistance for age-restricted
housing based on the percentage of very-low and low income senior citizens within the very-
low and low income households in the community. In the City of Santa Ana, very-low and low
income senior citizens account for 12% of the City's total very-low and low income population.
Therefore, the following summarizes the maximum amount of Affordable Housing Fund
expenditures that can be spent on age restricted projects.
Table 14: Age Restriction Requirements
The following summarizes the actual expenditures incurred by the Agency between January 1,
2002 and FY 2010:
Table 15: Actual Expenditures (1/1/2002 - 6/30/2010)
Age Restricted $919,000 2%
Non-Age Restricted 55,295,000 98%
Totals $56,214,000 100%
The following summarizes the income category allocations of the proposed expenditures for
July 1, 2010 through December 31, 2014:
Table 16: Projected Expenditures (7/1/2010 -12/31/2014)
FY 2011 $1,740,000 $13,060,000 $14,800,000
FY 2012 1,620,000 11,880,000 13,500,000
FY 2013 1,440,000 10,560,000 12,000,000
FY 2014 1,500,000 11,000,000 12,500,000
July 1- December 31, 2014 1,500,000 11,000,000 12,500,000
Total Expenditures $7,800,000 $57,500,000 $65,300,000
% of Total Expenditures 12% 88% 100%
By the end of the obligation period, it is anticipated that the Agency expenditures will have
allocated 7% of the Affordable Housing Fund's project and program expenditures to age restrict
projects and 93% of the funds to non-age restricted projects, summarized below:
Santa Ana Cominrrnity Redevelopment Agency Implementation F`
For the Merged Santa Ana Redevelopment Project 'o"B-52
July 1, 2010 to June 30, 2015
Page 49
Table 17: Age Restriction Proportionality Test (1/112002 -12/31/2014)
Age Restricted $8,719,000 7%
Non-Age Restricted 112,795,000 93%
Totals $121,514,000 100%
These expenditures match the current proportionality requirements, and thus, the Agency is
anticipated to meet the age restricted targeting standards imposed by Section 33334.4.
EXCESS SURPLUS CALCULATION
The Affordable Housing Fund is also subject to the "excess surplus" requirements imposed by
Section 33334.12. Excess surplus is defined as any unexpended and unencumbered funds in
the Affordable Housing Fund that exceeds the greater of $1 million or the aggregate amount
deposited into the Affordable Housing Fund during the Merged Project Area's preceding four
fiscal years. Based on the Section 33334.12 requirements, the Agency has three years to
encumber any excess surplus funds.
The Agency does not currently have an excess surplus balance, and as is illustrated below,
Agency does not expect to have an excess surplus through FY 2015:
C. INCLUSIONARY HOUSING PRODUCTION STATUS
LEGAL REQUIREMENTS
For the purposes of this implementation Plan, inclusionary housing production refers to a
redevelopment agency's obligation to cause a specified percentage of new or rehabilitated
housing produced in a Merged Project Area to be available at affordable housing cost. It does
not matter whether the housing is market rate or cost restricted, nor does it matter if the
housing is privately or publicly produced.
Santa Ana Core
For the Merge
Redeveloprrrent Agency Imgjgry? tio?Pjn
Ana Redevelopment ProjectXF1?A1
July 1, 2010 to.', 2015
ge 49
Table 18: Excess Surplus Calculation (FY 2011112 - FY 2014/15)
APPLICABILITY OF INCLUSIONARY HOUSING PRODUCTION REQUIREMENTS
Redevelopment project areas adopted prior to January 1, 1976, are not subject to this legal
requirement. All of the subareas in the Merged Project Area were adopted after December 31,
1975, with the exception of the Central Project Area. Thus, all of the Merged Project Area,
excluding the Central Project Area, has inclusionary housing obligations.
METHOD OF CALCULATION OF INCLUSIONARY HOUSING PRODUCTION REQUIREMENTS
The percentage of housing units that must be available at an affordable housing cost varies by
whether the housing constructed or rehabilitated was developed by a redevelopment agency or
by another party. The Agency has not produced housing per the definition contained in Section
D above. A written agreement with the Agency requiring affordable housing covenants does
not meet the definition of agency-produced housing.
The definition of substantial rehabilitation changed as of January 1, 2002. Prior to that time,
any substantially rehabilitated units counted if they were in complexes of three or more units
(triplexes or larger).
For housing constructed or substantially rehabilitated by persons or entities other than a
redevelopment agency, at least 15% of the units developed within the Merged Project Area
must be available to households of low or moderate income. Of this number, not less than 40%
must be available to very-low income households. For example, for every 100 units produced,
15 must be affordable. Of these 15 units, at least six units must be available to households with
very-low income and the remaining nine units can be available to households of low or
moderate income. Any fraction is rounded up, so for 101 units produced, 16 must be
affordable and of that total, seven must be available to very-low income households.
INCLUSIONARY HOUSING PRODUCTION REQUIREMENTS
The following summarizes the new construction and substantial rehabilitation units created in
the Merged Project Areas since adoption:
Table 19: Residential Units Created (Project Area Adoption - FY 2010)
Plan Adoption - FY 1999 881
FY 2000 - FY 2004 4 260
FY 2005 - FY 2010
Third Street 1
Skyline (Hutton Center) 349
Total Units Developed in Merged Project Areas 1,491
3 This assumption is based on previous Implementation Plan.
4 This assumption is based on previous Implementation Plan.
Santa Ana Community Redevelopment Agency Im do P%%p?n
For the Merged Santa Ana Redevelopment ProjeciQQ v08-54
July 1, 2010 to June 30, 2015
Page 50
A total of 745 new residential units are expected to be developed in the Merged Project Area
during the next five years. The projects that are in planning are summarized as follows:
Table 20: Projected Residential Unit Development (FY 2010/11- FY 2014/15)
Vista del Rio 41 2011
Geneva Commons/Promenade Point 278 2015
Montage @ MacArthur 279 2015
Skyline Phase II 150 2015
Total Units to be Developed in Merged Proiect Areas 745
An additional 25 units are anticipated to be developed within the Merged Project Area between
FY 2016 and FY 2020 and 100 units between FY 2021 and the termination of the Project Areas.
The following summarizes the current and potential inclusionary housing obligation for the
Agency:
Table 21: Inclusionary Housing Production Requirements
Through FY 2010 1,491 90 134 224
FY 2011- FY 2020 770 47 69 116
FY 2021-Termination 100 6 9 15
Total Units 2,361 143 212 355
lna Community Redevelopment Agency Imp do P n
Merged Santa Ana Redevelopment Projectgbb-50
1 "1010 to June 30, 2015
/4
Page 51
INCLUSIONARY HOUSING PRODUCTION FULFILLMENT
The following inclusionary housing units have been produced:
Table 22: Inclusionary Housing Production Fulfillment (1983 - 2008)
Various Projects 1983 -2005 Various 1 358 1 161.5 38.5 200.0
Outside Mereed Proiect Areas 5
Wilshire - Minnie / 1205 E. Wilshire 2007 55 Years 143 29.0 42.5 71.5
City Gardens / 2901 Bristol Street 2006 55 Years 59 29.5 0.0 29.5
Ross / 1501 N. Ross Street 2006 55 Years 24 5.5 6.5 12.0
Durant / 1411 N. Durant Street 2006 55 Years 24 5.0 7.0 12.0
Lacy & Raitt / 702 S. Raitt Street 2009 55 Years 8 4.0 0.0 4.0
Lacy & Raitt / 703 N. Lacy Street 2009 55 Years 26 13.0 0.0 13.0
Logan / 1006 N. Logan 2008 45 Years 1 0.0 0.5 0.5
Logan / 1012 N. Logan 2008 45 Years 1 0.0 0.5 0.5
Logan / 1015 N. Logan 2008 45 Years 1 0.0 0.5 0.5
RSI / Orange & McFadden 2009 45 Years 1 0.0 0.5 0.5
RSI / Orange & McFadden 2009 45 Years 1 0.0 0.5 0.5
Regina House / 1505 N. Bush 2006 45 Years 3 0.0 1.5 1.5
Joseph House / 210 E. 16th Street 2006 45 Years 4 0.0 2.0 2.0
Townsend & Raitt / 701 S. Townsend 2008 45 Years 10 5.0 0.0 5.0
Townsend & Raitt / 709 S. Townsend 2008 45 Years 10 5.0 0.0 5.0
Townsend & Raitt / 817 S. Townsend 2008 45 Years 10 5.0 0.0 5.0
Townsend & Raitt / 821 S. Townsend 2008 45 Years 10 4.5 0.5 5.0
Townsend & Raitt / 834 S. Townsend 2008 45 Years 11 5.5 0.0 5.5
Total Units 705 273.0 101.0 373.5
5 Units developed outside of the Project Areas are counted on a one for two basis.
Santa Ana Community Redevelopm .cy Irnp?i?t,Ztiiow p"p
For the Merged Santa Ana Redevelo 'roject bb
July 1, 2010 to June 30, 2015
Page 52
While the Agency plans to produce affordable housir g units during the Plan period, the
affordability mixes have not yet been determined. As is illustrated in the next section, the
previously developed affordable units enable the Agency to be in compliance through the
termination of the Project Areas would be in compliance with the Inclusionary Housing
obligations if the Agency anticipates that the following inclusionary housing production units
will be completed between July 1, 2010 and June 30, 2015:
Table 23: Projected Inclusionary Housing Production (FY 2010/11- FY 2014/15)
INCLUSIONARY HOUSING PRODUCTION OBLIGATION SURPLUS / (DEFICIT) CALCULATION
The Agency is required to measure inclusionary housing production as of June 30, 2010, June
30, 2020 and at the end of the Merged Project Area's life. The following table illustrates the
production obligations and fulfillment anticipated to be generated at each point in time:
Table 24: Inclusionary Housing Production Obligation Surplus / (Deficit)
Total Inclusionary Housing Fulfillment 272.5 101.0 373.5
Adjustment (33.0) 33.0 0.0
(Less) Inclusionary Housing Obligation (90.0) (134.0) (224.0)
Inclusionary Housing Surplus / (Deficit) 149.5 0.0 149.5
Santa Ana Community Redevelopment Agency Imp n c do July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project - -57' ? . Page 53
*Units produced outside the Merged Project Area will be counted on a two-for-one basis, in
accordance with the CRL.
Inclusionary Housing Surplus / (Deficit) 149.5 0.0 149.5
Total Inclusionary Housing Fulfillment 102.0 12.5 114.5
Adjustment (56.6) 56.6 0.0
(Less) Inclusionary Housing Obligation (47.0) (69.0) (116.0)
Inclusionary Housing Surplus / (Deficit) 148.0 0.0 148.0
Inclusionary Housing Surplus / (Deficit) 148.0 0.0 148.0
Total Inclusionary Housing Fulfillment 0.0 0.0 0.0
Adjustment (9.0) 9.0 0.0
(Less) Inclusionary Housing Obligation (6.0) (9.0) (15.0)
Inclusionary Housing Surplus / (Deficit) 133.0 0.0 133.0
Thus, the Agency is expected to surpass the CRL inclusionary housing obligations.
D. REPLACEMENT HOUSING STATUS
LEGAL REQUIREMENTS
The Agency is required to meet replacement housing obligations pursuant to Section 33413(a).
This Section requires the Agency to replace, on a one-for-one basis, all units removed from the
inventory as a result of Agency actions that are occupied by low and moderate income
households. In addition to matching the income levels of the removed units, the Agency must
also replace an equal or greater number of bedrooms.
Article 16.5 requires that if an implementation plan contains projects that could result in the
removal of low and moderate income housing units, the plan must identify locations suitable
for the replacement of such housing. The homes that are removed from the inventory may be
replaced with fewer units as long as an equal or greater number of bedrooms are provided in
the replacement units. Replacement housing units do not have to match tenure (i.e., rental vs.
ownership, family vs. senior housing) as the units removed from inventory. Also, replacement
units can be developed anywhere within the City limits.
PAST REMOVAL OF LOW AND MODERATE INCOME UNITS
With the exception of one very-low income five-bedroom unit that was removed in 2005, the
Agency has fulfilled all the replacement housing obligations for units that were removed during
the previous Implementation Plan periods. To fulfill this outstanding requirement, the Agency
Santa Ana Comnum _ elo ment Agency Im I n i ior n Jul 1, 2010 to June "
For the Merged Sant 2deelopmennt Project8106-b? Y
has identified a site that will be developed by a non-profit corporation that will accommodate a
five-bedroom unit. The project is currently in its preliminary stages.
FUTURE REMOVAL OF LOW AND MODERATE INCOME UNITS
The Agency anticipates that 20 very-low income units will be removed from the low and
moderate income housing stock in 2010. The location and Agency estimates of the number of
bedrooms and income levels of the existing households are identified in Table 25. As shown in
Table 25, the Agency will replace these units with units developed through a mix of already
completed projects and projects to be completed in the next several years.
Table 25: Replacement Housing Analysis
1 • I •' 1
1 .
812 E. Santa Ana Blvd 2 0 0 2 1410 N. Durant 2 0 0 2
812 E. Santa Ana Blvd 0 2 0 2 703 N. Lacy 0 2 0 2
611 N. Garfield 4 0 0 4 817, 821 S. Townsend 4 0 0 4
611 N. Garfield 0 3 0 3 821 S. Townsend / 703 N. Lacy 0 3 0 3
911 Brown Street 0 1 0 1 703 N. Lacy 0 1 0 1
617 E. Sixth Street 0 01 0 1 703 N. Lacy 0 01 0 1
613 E. Sixth Street 0 2 0 2 703 N. Lacy 0 2 0 2
609 E. Sixth Street 0 1 0 1 817 S. Townsend 0 1 0 1
607 E. Sixth Street 0 0 1 1 1410 N. Durant 0 0 1 1
515 E. Fifth Street 0 1 0 1 702 S. Raitt 0 1 0 1
519 E. Fifth Street 0 0 3 3 817 S. Townsend 0 0 3 3
609 E. Fifth Street 1 0 0 1 1439 S. Minnie 1 0 0 1
706 E. Sixth Street 1 0 0 1 817 S. Townsend 1 0 0 1
701 E. Sixth Street 26 0 0 26 821 S. Townsend / 901 E. Sixth / 1410 26 0 0 26
N. Durant
713 E. Fifth Street 8 0 0 8 821 S. Townsend / 1410 N. Durant 8 0 0 8
602 E. Fifth / 409 Minter 1 0 0 1 817 S. Townsend 1 0 0 1
602 E. Fifth / 409 Minter 0 1 0 1 703 N. Lacy 0 1 0 1
708 E. Fifth Street 0 1 0 1 1410 Durant 0 1 0 1
716 E. Fifth Street 1 0 0 1 1410 Durant 1 0 0 1
720 E. Fifth Street 8 0 0 8 817 S. Townsend 8 0 0 8
(aka 416 N. Lacy)
610 E. Sixth Street 2 2 0 4 821 S. Townsend 2 2 0 4
Totals 54 15 4 73 Totals 54 15 4 73
E. ABILITY TO COMPLY WITH OBLIGATIONS PRIOR TO TIME LIMIT OF EFFECTIVENESS OF
REDEVELOPMENT PLAN
Section 33490(a)(4) of the CRL requires a Merged Project Area that is within six years of the
time limit of effectiveness of the Redevelopment Plan to explain how the Agency will meet the
housing obligations.
The Central City subarea will reach the end of the Plan effectiveness on July 2, 2017. As
previously discussed, the Agency will be in compliance with all of the affordable housing
obligations.
Santa Ana Community Redevelopment Agency Im r ^? n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project B 59 Page 55
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Santa imunity Redevelopment Agency Imgjgry ?tio?PAn July 1, June 30, 2015
For th d Santa Ana Redevelopment Project V Page 56
Appendix A
Summary of Supplemental Judgments
Santa Ana Community Redevelopment Ag.: i i do PI n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment ?? Appendix A - 1
Inter City Commuter Station Redevelopment Project Area (1984) 6
Thirty percent (30%) of the tax increment generated or related revenue or moneys repayable
from property tax increment from the project area are to be set aside for low and moderate
income housing.
North Harbor Boulevard Redevelopment Project Area (1984)
Thirty percent (30%) of the property tax increment generated or related revenue or moneys
repayable from property tax increment from the project area are to be set aside for low and
moderate income housing.
South Main Street Redevelopment Project Area (1984) 8
Twenty percent (20%) of the property tax increment generated or related revenue or moneys
repayable from property tax increment from the project area are to be set aside for low and
moderate income housing.
South Harbor Boulevard Fairview Street Redevelopment Project Area (1984) 9
Sixty percent (60%) of the property tax increment generated or related revenue or moneys
repayable from property tax increment from the project area must be set aside for low and
moderate income housing.
Bristol Corridor Redevelopment Project Area (1994) 1o
Thirty (30) percent of the property tax increment generated by the Bristol Corridor Project Area
must be allocated to the Affordable Housing Fund. These funds must be separately accounted
for in the Agency's Annual Report.
The following summarizes the Affordable Housing Fund use requirements:
¦ Off-site improvements must be directly related to a specific housing development;
¦ Affordable Housing Funds cannot be used for relocation benefits;
¦ No more than 15% of the Affordable Housing Funds can be used to provide rent
subsidies for low and very-low income households;
¦ Existing affordable units can be acquired as long as the covenants are extended by at
least 15 years for rental units and 10 years for for-sale units.
¦ Units developed with the Bristol Corridor Project Area Affordable Housing Funds must
be restricted in accordance with the RHNA proportionalities.
6 Edwards, et al. v. City of Santa Ana, etc., et al
Rodrigues, et al. v. City of Santa Ana, etc., et al
8 Peebler, et al. v. City of Santa Ana, etc., et al
9 Gibson v. City of Santa Ana, etc. et al
io Robert P. Gonzales and Evangelina Avalos vs. City of Santa Ana, etc. et al
Santa Ana Community Redevelopment Agency Im doP n July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project i -ti Appendix A- 2
Appendix B
Glossary of Terms
Santa Ana Community Red ,,3nt Agency Implementation Plan
For the Merged Santa Ana Apment Project §bB-63
July 1, 2010 to June 30, 2013)
Appendix B
GLOSSARY OF TERMS
The following glossary (or definition of terms) is provided to assist the public to better
understand and evaluate the implementation Plan. Terms are applicable to redevelopment
activities and to community development in general.
Absentee Owner - Property owner who owns property at one location but lives or operates a
business at another location.
ADA -The Americans with Disabilities Act of 1990.
Adaptive Reuse - The rehabilitation of older properties for a new purpose.
Affordability Gap -The extent to which gross housing costs, including utility costs, exceed 30% of gross household
income.
Affordable Housing-As defined in California law, housing that is affordable to households earning at or below 120
percent of area median income.
Affordable Housing Cost - As described in Section 50052.5 of the California Health and Safety Code (which see for
more detail), the term applies to owner-occupied housing. For very low-income families it means a cost that does
not exceed 30 percent of the monthly income of a very low-income household of appropriate size for the unit. For
low-income families it means a cost that does not exceed 30 percent of the monthly income of an appropriately
sized household at 70 percent of monthly income. For moderate-income households it means a cost that is not
less than 28 percent or more than 35 percent of the monthly income of an appropriately sized household at 110
percent of monthly income.
Affordable Rent - As described in Section 50053 of the California Health and Safety Code (which see for more
detail), the term applies to rental housing. For very low-income families it means a cost that does not exceed 30
percent of the monthly income of a very low-income household of appropriate size for the unit. For low-income
families it means a rent that does not exceed 30 percent of the monthly income of an appropriately sized
household at 60 percent of monthly income. For moderate-income households it means a rent that does not
exceed 30 percent of the monthly income of an appropriately sized household at 110 percent of monthly income.
Affordable Owner-Occupied Housing- Housing units meant for sale and occupancy by owners, and carrying
affordability covenants that conform to Section 50052.5 of the California Health and Safety Code (which see for
more detail).
Affordable Renter-Occupied Housing- Housing units meant for long-term occupancy by tenant households,
Affordability Restrictions - The requirements imposed by a redevelopment agency or other public agency that
housing units remain affordable to low- and moderate-income households for a specified number of years.
Santa Ana Community Redevelopment Agency Implementatior. ? Pi. July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project O B-64, " Appendix B - 2
Amenity - An aspect of a property that enhances its value. Examples, off-street reserved parking within a
condominium community, the nearness of good public transportation, tennis courts or a swimming pool.
Area Median Income (AMI)-The median income for a geographic area such as a county that may be established by
the U.S. Department of Housing and Urban Development (HUD) or the State of California. AMI tables commonly
provide income numbers for households from one to eight persons.
Assessed Value - The amount used by the county tax assessor to value real property for tax purposes. Assessed
value multiplied by the tax rate determines property tax.
At-Risk Units - In general, any affordable unit that may convert to market rate because the affordability
restrictions are about to expire, the owner can opt-out of the Section 8 program, or the owner can prepay a
federal mortgage.
Base Year - The year in which the redevelopment plan is adopted.
Base Year Assessed Value, Base Value or Frozen Base -The total assessed value of property within a project area
in the year in which the redevelopment plan is adopted.
Blight - Current definitions of blight identify both physical and economic blighting conditions.
Physical
Buildings that are unsafe or unhealthy for persons to live or work in
Conditions such as substandard design or construction that hinder the utility of buildings
Adjacent or nearby incompatible uses that prevent development
Subdivided lots of irregular shapes or inadequate size and in multiple ownership
Economic
Depreciated or stagnant property values, or property values impaired by the presence of hazardous waste
High business vacancy or abandonment rates, abnormally low lease rates
Absence of necessary, neighborhood oriented commercial facilities such as grocery stores and banks
Serious residential overcrowding
An excess of bars, liquor stores or adult-oriented businesses
Bond - An interest bearing promise (bond) to pay a specified sum of money, the principal amount due on a specific
date. Funds raised through the sale of bonds can be used for various public purposes, such as housing.
California Community Redevelopment Law - Redevelopment law contained in California Health and Safety Code,
Division 24, Part 1(Section 33000 et seq.).
CEQA - California Environmental Quality Act. Requires the assessment of projects for environmental impacts and
establishes procedures for preparing and processing environmental documents.
Condominium - A form of ownership of real property in which the purchaser receives title to a particular unit and a
proportionate interest in certain common areas. Each unit is a separately owned space to the interior surfaces of
the perimeter walls, floors and ceilings. Title to the common areas is in terms of percentages and refers to the
entire project less the separately owned units.
Santa Ana C sty. Redevelopment Agency Implementation Plan July 1, 2010 to, 71i, 2015
For the Mer, :a Ana Redevelopment ProjectMB_65 x B--3
Construction Costs - Broadly, all costs incurred in bringing a building to completion, not including land acquisition,
financing or sales costs.
Construction Loan - A short-term interim loan for financing the cost of construction. The lender makes payments
to the builder at periodic intervals as the work progresses.
Cost Burden - The extent to which housing costs, including utilities, exceed 30% of gross income, based on data
published by the U.S. Census Bureau.
Deed Restriction - A limitation placed in a deed limiting or restricting the use of the real property.
Deferred Loan - A loan whereby payment of part or all of the loan is deferred until a later time as specified in the
loan.
Density Bonus - A provision to permit a residential developer to construct more dwellings on a site than would
normally be allowed, provided the developer includes certain amenities or public benefits.
Disabled Household - Households in which at least one of the residents is an adult with a disability. A person is
considered to have a disability if s/he has a physical, mental, or emotional impairment that (1) is expected to be of
indefinite duration, (2) substantially impedes his or her ability to live independently, and (3) is of such nature that
the ability could be improved by more suitable housing conditions (federal definition).
Economic Development -A general term indicating projects to stabilize and enhance an area's economy and to
create or maintain jobs.
Elderly Person - There is no universally accepted definition, but an individual must be at least 62 years of age to
qualify as elderly.
Emergency Shelter - A building in which emergency temporary lodging is provided, with or without meals, to
families and individuals who are homeless, where on-site supervision is generally provided whenever such shelter
is occupied.
Eminent Domain -Authority of a government agency to acquire property for public purposes, with payment of
just compensation. In the case of redevelopment agencies, public purposes include the elimination of blight.
Often referred to as condemnation.
Equity - The interest or value which an owner has in real estate over and above the current indebtedness;
sometimes referred to as the owner's interest.
Equity Sharing - The generic term for various forms of home financing in which a homeowner shares his property
appreciation with another party. Public agencies offering first time homebuyer programs often require that they
receive an equity share from homebuyers who sell their homes before the required period of affordability has
ended.
Extremely Low-Income Household - A household earning between 0% and 30% of the area median income.
Santa Ana Community Redevelopment Agency Irr ?ntation Plan July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Proji Appendix B - 4
8OB-66
Fair Housing Act - Title VI II of the Civil Rights Act of 968, as amended by the Fair Housing Amendments Act of
1988.
Fair Market Rents (FMR) - Estimates of the rent plus utilities that would be required to rent privately owned,
decent, safe, and sanitary rental housing of a modest nature with suitable amenities.
Fair Market Value - The price that would be paid for property offered on the open market for a reasonable period
of time with both buyer and seller knowing all the uses to which the property could be put, and with neither party
under pressure to buy or sell.
Family- All persons living in the same household who are related by birth, marriage, or adoption.
FAR (Floor Area Ratio) - The ratio of square feet of floor space to the square feet of the site on which a building is
located.
FHA - Federal Housing Administration. A division of the U.S. Department of Housing and Urban Development;
main activity is insuring residential mortgage loans made by approved lenders to qualified borrowers in
accordance with its regulations.
First-Time Homebuyer- Under federal law, an individual or family who has not owned a home during the three-
year period preceding the publicly assisted purchase of a home.
FNMA - Federal National Mortgage Association, popularly known as "Fannie Mae"; a federally chartered
corporation whose primary function is to buy and sell FHA and VA mortgages in the secondary market.
Foreclosure - An authorized procedure taken by a mortgagee or lender, under the terms of a mortgage or deed of
trust for the purpose of applying the property toward the payment of a defaulted debt.
Gap Financing-As used in the Consolidated Plan, gap financing represents the amount of public subsidy required
to make a project financially feasible.
General Plan - An adopted statement of policy for the physical development of a community, required by State
law.
GNMA - Government National Mortgage Association (Ginnie Mae); created in 1968 to take over special assistance
and liquidation functions of FNMA. Participates in the secondary market through its mortgage-backed securities
pools.
Grantee - Person or legal entity to which a grant is awarded and that is accountable for the use of the funds
available.
Group Quarters - A facility housing groups of persons not living in households (U.S. Census definition). Examples of
group quarters include prisons, dormitories, shelters, and military quarters.
HCD - California Department Housing and Community Development. Provides housing and planning information
and guidance, State bond funds, low-interest loans and grants for housing development and rehabilitation.
Oversees the Housing Element review process to ensure that Housing Elements are in compliance with State law.
"a Ana Community Redevelopment Agency Implementation Plan 2010 to June 30, 2015
ire Merged Santa Ana Redevelopment Project Area .r. Appendix B -- 5
80B-67
HOME - The HOME Investment Partnerships Act, which is Title II of the National Affordable Housing Act.
Homeless Family with Children -A family composed of the following types of homeless persons: at least one
parent or guardian and one child under the age of 18; a pregnant woman; or a person in the process of securing
legal custody of a person under the age of 18.
Homeless Person -A youth (17 years or younger) not accompanied by an adult (18 years or older) or an adult
without children, who is homeless (not imprisoned or otherwise detained pursuant to an Act of Congress or a State
law), including the following:
(1) An individual who lacks a fixed, regular, and adequate nighttime residence; and
(2) An individual who has a primary nighttime residence that is:
(i) A supervised publicly or privately operated shelter designed to provide temporary living
accommodations (including welfare hotels, congregate shelters, and transitional housing for the
mentally ill);
(ii) An institution that provides a temporary residence for individuals intended to be
institutionalized; or
(iii) A public or private place not designed for, or ordinarily used as, a regular sleeping
accommodation for human beings.
Homeless Subpopulations - Include but are not limited to the following categories of homeless persons: severely
mentally ill, alcohol/drug addicted, severely mentally ill and alcohol/drug addicted, fleeing domestic violence,
youth, and persons with HIV/AIDS.
Household -- All persons, whether related or unrelated, living in a housing unit.
Householder - Includes, in most cases, the person or one of the persons in whose name the home is owned or
rented. If there is no such person in the household, any household member 15 years old and over could be
designated as the householder.
Housing Code - Local standards that ensure that maintenance and improvements of housing meets accepted
standards and is adequate for occupancy.
Housing Element - Mandatory component of local General Plans required by the State. The Element contains
information on housing, population, household characteristics, assessment of current and projected housing need,
government and non-government constraints, energy conservation, publicly held lands, and planning housing
supply.
Housing Problems - A non-duplicative estimate of the number of units that have physical defects, are
overcrowded, or whose occupants pay greater than 30% of household income for rent (U.S. Census definition).
Housing Production/Inclusionary Housing- Within a redevelopment project, a specified percentage of housing
units built or substantially rehabilitated, and required by law to be available at an affordable housing cost to very
low-, low- and moderate-income persons. Within cities or counties, a specified percentage of new housing that is
required to be affordable pursuant to ordinance or policy.
Santa Ana Community Redevelop! g ?ncy Implementation Plan
For the Merged Santa Ana Redev.,' !t Project gbB-68
July 1, 2010 to June 30, 2015
Appendix B -- 6
HUD -The U.S. Department of Housing and Urban Development. E ltablished by the Housing and Urban
Development Act of 1965 to supersede the Housing and Home Finance Agency. Responsible for the
implementation and administration of government housing and urban development programs includes community
planning and development, housing production and mortgage credit (FHA), equal opportunity in housing, research,
and technology.
Inclusionary Zoning - In general, a local ordinance requiring that a developer of new housing produce a specified
number of affordable dwelling units as a condition of the right to develop.
Infrastructure - Public improvements which support development, including street improvements, lighting,
sewers, flood control facilities, water lines, and gas lines.
Jurisdiction -A State or unit of general local government.
Large Household - A household with five or more members.
Lead-based Paint Hazards - A lead-based paint hazards as defined in part 35, subpart B of Title X.
Leverage - Funds from non-public sources that are contributed to a project. For example, Redevelopment Agency
funds invested in a project would be said to be leveraged by private donations or conventional loans contributed
to that same project.
LIHTC - Low Income Housing Tax Credit.
Loan Guarantee - A commitment to a lender that the guaranteed portion of a loan will be repaid if the borrower
defaults. VA loans are guaranteed loans.
Low-Income Household - Defined as a household earning between 51% and 80% of the area median (as adjusted
for household size by HUD).
Low Income Housing Tax Credits - Program established by the Federal and California State governments that
provides income tax reduction for investors in the low-income housing.
Low- and Moderate-Income Households - Households whose incomes are between 0% and 120% of the median
income for the area, or as adjusted by HUD. The income range varies by program.
Market Value - What a willing seller could reasonably expect to receive if he/she were to sell his/her property on
the open market to a willing buyer.
MCC - Mortgage Credit Certificate Program, a federal program to assist first time homebuyers.
Median Income - The level above which 50% of the households have a higher income and 50% of the households
have a lower income.
Mixed-Use Project - Developments that combine uses, such as retail on the ground floor and residential above.
Santa Ana Community Redevelopment Agency Implementation Plan July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment Project MB-69 Appendix B - 7
Moderate-Income Household - Defined as a household earning between 81% and 120% of the area median
income, or as adjusted by HUD.
Neighborhood Revitalization Strategy - A multi-departmental effort to focus on a variety of neighborhood needs
by combining "crackdown" strategies (to address the social problems of drugs, crime, and gangs) with blight
improvement efforts. An important component includes increasing efforts to organize communities and build
public awareness and responsibility for solving the problems that exist.
Negotiated Sale - When the price to be paid for land and improvements is mutually agreed upon b the buyer and
seller.
NIMBY - "Not in My Backyard." An expression used to refer to individual and community-wide fears about
affordable housing and other locally unwanted land uses, such as fears that such development will lower property
values and increase crime.
Notice of Funding Availability (NOFA) - A notice to inform potential project sponsors of the availability of funding.
Offsite Improvements - Improvements outside the boundaries of a property that enhance its value.
Onsite Improvements - Any construction of buildings or other improvements within the boundaries of a property
which increases its value.
Overcrowded - A housing unit containing more people than is permitted by various laws. HUD defines an
overcrowded household as one in which there is more than one person per room. State law allows for much
higher occupancy before overcrowding is said to exist.
Poverty Level Family- Family with an income below the poverty line, as defined by the Office of Management and
Budget and revised annually.
Private Sector - Non-government, private, for-profit businesses and nonprofit organizations.
Project Area -The area that is designated in the redevelopment plan for redevelopment and revitalization.
Project Area Committee (PAC) - Elected committee composed of project area residents, businesses and
representatives of other organizations who consult with and advise the redevelopment agency.
Project-Based Rental Assistance - Rental assistance provided for a project, not for a specific tenant. Tenants
receiving project-based rental assistance give up the right to that assistance upon moving from the project.
Public Housing - Housing for lower-income households that is owned and managed on a long-term basis by a
public agency, normally a local housing authority.
Property Tax - The amount of tax which a property owner pays on the assessed value of his/her property. The tax
is calculated by multiplying the assessed value of the property by the tax rate, which is one percent plus any voter-
approved rate.
Santa Ana Commune" evelopment Agency Implementation Plan July 1, 2010 to June
For the Merged Sar <,edevelopment ProjectMB_70 Apper
Redevelopment - Planning, development, redesign, site preparation and improvement, reconstruction and/or
rehabilitation of all or part of a project area.
Redevelopment Agency Board -The governing body created to designate redevelopment project areas, supervise
and coordinate planning for a project area and implement the revitalization program.
Redevelopment Plan - Plan for revitalization and redevelopment of land within the project area in order to
eliminate blight and remedy the conditions that caused it.
Regional Housing Needs Assessment (RHNA) - In California, a periodic assessment of regional housing needs
conducted by regional councils of government. These assessments include an identification of each local
jurisdiction's share of the regional housing need.
Rehabilitation - To improve, alter, modernize and/or modify an existing structure to make it safer and healthier,
bring it up to building code standards and create more usable space.
Relocation - The provision of new housing and/or business locations for residents, businesses or organizations
that must move as a result of redevelopment or other governmental activities.
Relocation Assistance -Aid for those who relocate, including assistance in finding and paying for a new location,
payments to cover moving costs, and additional payments for certain other costs.
Replacement Housing - Housing that a public agency must cause to be produced to replace housing destroyed by
public action.
Section 8 Rent Voucher (a.k.a. Housing Choice Voucher) - Vouchers subsidize the rent based on the difference
between 30% of the tenant's income and a Rent Payment Standard.
Senior Household - One- or two-person households containing a person at least 62 years of age.
Service Needs - The particular services identified for special needs populations, which typically may include
transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response,
and other services to prevent premature institutionalization and assist individuals to continue living independently.
Severely Cost Burden - The extent to which housing costs, including utilities, exceed 50% of gross income, based
on data published by the U.S. Census Bureau.
Sheltered - Families and persons whose primary nighttime residence is a publicly supervised or privately operated
shelter (e.g., emergency and transitional shelters or commercial hotels/motels used to house the homeless).
"Sheltered homeless" does not include any individual imprisoned or otherwise detained pursuant to an Act of
Congress or State Law.
Small Household - A household having fewer than 3 members.
Single Room Occupancy Housing (SRO) - Generally, one-room housing units such as boarding houses, rooming
houses and motels and hotels. SROs are often situated in older downtown buildings, typically rented on a short- or
long-term basis by lower income working and retired individuals, and mentally and physically disabled people.
Santa Ana Community Redevelopment Agency ImplemE Man July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopment ProjeckMB41 Appendix B -9
Sub recipient -A public agency or nonprofit organization selected by the participating jurisdiction toad minister all
or a portion of the participating jurisdiction's HOME program
Substandard Unit - In general, any unit that suffers from some type of physical defect, such as electrical wiring that
is not up to Code or lack of plumbing. There is no common definition of "substandard" housing among the federal,
State, or local levels.
Supportive Housing - Housing with a supporting environment, such as group homes or Single Room Occupancy
(SRO) housing and other housing that includes a planned service component.
Supportive Services - Services provided to residents of supportive housing for the purpose of facilitating the
independence of residents. Some examples are case management, medical or psychological counseling and
supervision, childcare, transportation, and job training.
Tax Allocation Bond - A bond or financial obligation issued by a redevelopment agency in order to generate funds
to implement the redevelopment plan. The bond is repaid with tax increment revenues flowing to the agency.
Tax Exempt Bond - A bond on which interest payments made to the bondholder are not subject to federal
taxation.
Tax Increment Funds - Additional tax funds that result from increases in property values occurring within a
specified Redevelopment Area. State law permits these funds to be earmarked for redevelopment purposes and
requires that at least 20% be used to increase and improve the community's affordable housing supply.
Tenant-Based Rental Assistance - A form of rental assistance in which the assisted tenant may move from a
dwelling unit with a right to continued assistance. The assistance is provided for the tenant, not for the project.
Transitional Housing -A project that is designed to provide housing and appropriate supportive services to
homeless persons to facilitate movement to independent living within 24 months, or a longer period approved by
HUD.
Unsheltered - Families and individuals whose primary night-time residence is a public or private place not designed
for, or ordinarily used as, a regular sleeping accommodation for human beings (e.g., the street, sidewalks, cars,
vacant and abandoned buildings).
Very Low-Income - Defined by HUD as a household earning between 31% and 50% of the median area income.
Year-Round Housing - All occupied units and vacant units available for/or intended for year-round use.
Zoning - The act of city authorities specifying the type of use to which property may be put in specific areas.
Zoning Ordinance - The regulations of a municipality for controlling the character and use of property.
Sant. " 0mmunity Redevelopment Agency Implementation Plan July 1t to June 30, 2015
For : ;ed Santa Ana Redevelopment Project 9O B-72 appendix B -- 10
Appendix C
Time and Financial Limits
(as of June 2010)
Santa Ana Community Redevelopment/ -_ `niplementation Plan July 1, 2010 to June 30, 2015
For the Merged Santa Ana Redevelopme Ct8®B-73 Appendix C -1
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Community Redevelopment Agency
20 Civic Center Plaza, M-25
Santa Ana, CA 92701
8OB-82 - -
3-1-11 LES
RESOLUTION NO.2011-
A RESOLUTION OF THE CITY COUNCIL OF SANTA ANA
APPROVING A COOPERATIVE AGREEMENT REGARDING THE
IMPLEMENTATION OF PROGRAMS AND PROJECTS
ESTABLISHED IN THE 2010/11-2014/15 FIVE-YEAR
IMPLEMENTATION PLAN WITH THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
AND MAKING CERTAIN FINDINGS RELATED THERETO
PURSUANT TO SECTION 33445 OF THE HEALTH & SAFETY
CODE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
Section 1: The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. The Community Redevelopment Agency of the City of Santa Ana
(hereinafter referred to as the "Agency") is engaged in activities necessary
to execute and implement the Redevelopment Plan for the Merged Project
Area (the "Redevelopment Plan").
B. The intent of the Redevelopment Plan is, in part, to provide for the
construction and installation of necessary public infrastructure and
facilities, and to facilitate the repair, restoration and/or replacement of
existing public facilities and to perform specific actions necessary to
promote the redevelopment and the economic revitalization of the Project
Area, and to expend tax increment to accomplish the goals and objectives
of the respective redevelopment projects.
C. The Agency has adopted its Five-Year Implementation Plan
(2010/11-2014/15) for the Project Area, as amended from time to time
(the "Implementation Plan"), with established goals to support affordable
housing, economic development, community revitalization, and
institutional revitalization. To implement the projects, programs and
activities associated with each goal, the Agency has made redevelopment
fund commitments based on estimated available tax increment revenue
and debt financing structures.
D. The Agency and City of Santa Ana (the "City") wish to cooperate
with one another to bring about the redevelopment of the Merged Project
EXHIBIT 2
8OB-83
Area and accomplish various projects and programs set forth in the
Redevelopment Plan and the Implementation Plan.
E. Pursuant to Section 33220 of the Community Redevelopment Law
(Health and Safety Code section 33000, et seq.) (the "CRU) certain public
bodies, including the City may aid and cooperate in the planning,
undertaking, construction, or operation of redevelopment projects.
F. The Agency and City have prepared a Cooperative Agreement (the
"Agreement") to provide for the implementation of certain projects set forth
in the Implementation Plan attached hereto as Exhibit 1 (the "Projects"),
and to make payments by the Agency to the City to reimburse the City for
the cost to the City for performing its obligations thereunder.
The programs and activities associated with the Projects include,
but are not limited to, acquisition and disposition of property, design,
planning, preparation of construction bid documents, financial analysis,
financing and new construction or rehabilitation. To carry out the Projects
in accordance with the objectives and purposes of the Redevelopment
Plan for the Project Area and the Implementation Plan, the Agency
desires assistance and cooperation in the implementation and completion
of the Projects. The City wishes to enter into the Agreement with the
Agency to aid the Agency and cooperate with the Agency to expeditiously
implement the Projects in accordance with the Redevelopment Plan for
the Project Area and the Implementation Plan and undertake and
complete all actions necessary or appropriate to ensure that the
objectives of the Redevelopment Plan for the Project Area and the
Implementation Plan is fulfilled within the time effectiveness of the Project
Area.
G. The Agency wishes to enter the Agreement with the City for the
pledge of net available tax increment to finance the Projects. The
purpose of the agreement is to facilitate the implementation of the
Projects and to provide funding necessary to effectuate the completion of
the Projects with net available tax increment in this current fiscal year and
forthcoming fiscal years. "Net tax increment" is defined as gross tax
increment, less County Administrative Fees, statutory pass-throughs and
debt service. By approving and entering into the Agreement, the Agency
will approve the pledge of net available increment from the Project Area to
pay for the Projects.
G. Section 33445 of the Health & Safety Code, part of the California
Redevelopment Law, provides that the Agency may pay for all or part of the
2
8OB-84
cost of installation and construction of any building, facility, structure or
other improvement which is publicly owned either within or without the
project area, upon the consent of the City, if the following findings can be
made:
1. That the public improvement is of benefit to the project area
or the immediate neighborhood in which the project is located and
helps to eliminate blight;
2. That no other reasonable means of financing the publicly
owned improvement is available to the community; and
3. That the payment of funds for the cost of the publicly owned
improvement is consistent with the Implementation Plan.
H. The City finds that the Projects will be of benefit to the merged
Project Area as well as benefit the immediate neighborhood and all
residents and visitors to the City. This finding is supported by the fact that
public improvements in general facilitate the removal of blight and help
create a safe, more cohesive and economically dynamic community.
Development of library, park and recreational facilities, as well as public
parking and open space improvements assist in removal of blight within
densely populated neighborhoods currently underserved with these types of
amenities. Public safety and street improvements eliminate blight, improve
traffic flow, increase the safety of residents, promote job create and
promote business attraction and retention. The City, public and business
community will significantly benefit from the proposed public facilities on the
Schedule of Projects. These public improvements will beautify public
streets, promote business, and improve public infrastructure necessary to
spur economic revitalization in the Project Area.
1. The City determines that it lacks funds to pay for the Projects at this
time, and there are no other reasonable means of financing said
improvements. It has been difficult for the City, by itself, to provide
sufficient funds to support the implementation of major public projects,
programs, and activities. The limited resources of the City's General Fund
are committed to previously incurred obligations and planned projects.
J. The City further finds and determines that the payment of funds for
the implementation of the public projects, programs and activities is
consistent with the Implementation Plan adopted pursuant to Health and
Safety Code Section 33490.
3
8OB-85
K. The City finds that it is in the best interests of the City and the
common benefit of residents, employees, business tenants and property
owners within the Project Area and the City as a whole for the Projects to
be developed and constructed.
L. The use of funds in the Agency's low and moderate income housing
fund for the Projects located outside of the Project Area can be used in
accordance with Section 33334.2 of the CRL because the use of such
funds will be of benefit to the Project Area.
M. The City Council has received and heard all oral and written
objections to the proposed payments by the Agency to the City for the
Projects as described in the Agreement, and to other matters pertaining to
this transaction, and all such oral and written objections are hereby
overruled.
N. The City Council hereby finds and determines that the foregoing
findings are true and correct.
Section 2. The City Council hereby consents to the payment by the Agency of
up to $210,000,000.00 in Agency funds from the Merged Project Area for these public
projects, programs and activities, in accordance with that certain Cooperative Agreement
to be executed between the Agency and the City.
Section 3. The City Manager or his designess is hereby authorized to take all
steps, and to sign all documents and instruments necessary to implement and carry out
and implement the Agreement, and to administer the City's obligations, responsibilities
and duties to be performed under the Cooperative Agreement on behalf of the City.
Section 4. The Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
?:1i : :II:
ADOPTED this day of , 2011.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph Straka, Interim City Attorney
By:
Lisa E. Storck
Assistant City Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2011- to be the original resolution adopted by the City Council
of the City of Santa Ana on
Date:
Clerk of Council
City of Santa Ana
5
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?e
,?3117-Soefoe?]
3-3-11 LES
RESOLUTION NO.2011-
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF SANTA ANA APPROVING A COOPERATIVE
AGREEMENT REGARDING THE IMPLEMENTATION OF
PROGRAMS AND PROJECTS ESTABLISHED IN THE 2010/11-
2014/15 FIVE-YEAR IMPLEMENTATION PLAN WITH THE CITY
OF SANTA ANA AND MAKING CERTAIN FINDINGS RELATED
THERETO PURSUANT TO SECTION 33445 OF THE HEALTH &
SAFETY CODE
BE IT RESOLVED BY THE OF THE COMMUNITY REDEVELOPMENT
AGENCY CITY OF SANTA ANA, AS FOLLOWS:
Section 1: The Community Redevelopment Agency Board hereby finds,
determines and declares as follows:
A. The Community Redevelopment Agency of the City of Santa Ana
(hereinafter referred to as the "Agency") is engaged in activities necessary
to execute and implement the Redevelopment Plan for the Merged Project
Area (the "Redevelopment Plan").
B. The intent of the Redevelopment Plan is, in part, to provide for the
construction and installation of necessary public infrastructure and
facilities, and to facilitate the repair, restoration and/or replacement of
existing public facilities and to perform specific actions necessary to
promote the redevelopment and the economic revitalization of the Project
Area, and to expend tax increment to accomplish the goals and objectives
of the respective redevelopment projects.
C. The Agency has adopted its Five-Year Implementation Plan
(2010/11-2014/15) for the Project Area, as amended from time to time
(the "Implementation Plan"), with established goals to support affordable
housing, economic development, community revitalization, and
institutional revitalization. To implement the projects, programs and
activities associated with each goal, the Agency has made redevelopment
fund commitments based on estimated available tax increment revenue
and debt financing structures.
D. The Agency and City of Santa Ana (the "City") wish to cooperate
with one another to bring about the redevelopment of the Project Area
and accomplish various projects and programs set forth in the
EX4BIT 3
Redevelopment Plan and the Implementation Plan.
E. Pursuant to Section 33220 of the Community Redevelopment Law
(Health and Safety Code section 33000, et seq.) (the "CRL") certain public
bodies, including the City may aid and cooperate in the planning,
undertaking, construction, or operation of redevelopment projects.
F. The Agency and City have prepared a Cooperative Agreement (the
"Agreement") to provide for the implementation of certain projects set forth
in the Implementation Plan attached hereto as Exhibit 1 (the "Projects"),
and to make payments by the Agency to the City to reimburse the City for
the cost to the City for performing its obligations thereunder.
The programs and activities associated with the Projects include,
but are not limited to, acquisition and disposition of property, design,
planning, preparation of construction bid documents, financial analysis,
financing and new construction or rehabilitation. To carry out the Projects
in accordance with the objectives and purposes of the Redevelopment
Plan for the Project Area and the Implementation Plan, the Agency
desires assistance and cooperation in the implementation and completion
of the Projects. The City wishes to enter into the Agreement with the
Agency to aid the Agency and cooperate with the Agency to expeditiously
implement the Projects in accordance with the Redevelopment Plan for
the Project Area and the Implementation Plan and undertake and
complete all actions necessary or appropriate to ensure that the
objectives of the Redevelopment Plan for the Project Area and the
Implementation Plan is fulfilled within the time effectiveness of the Project
Area.
G. The Agency wishes to enter the Agreement with the City for the
pledge of net available tax increment to finance the Projects. The
purpose of the agreement is to facilitate the implementation of the
Projects and to provide funding necessary to effectuate the completion of
the Projects with net available tax increment in this current fiscal year and
forthcoming fiscal years. "Net tax increment" is defined as gross tax
increment, less County Administrative Fees, statutory pass-throughs and
debt service. By approving and entering into the Agreement, the Agency
will approve the pledge of net available increment from the Project Area to
pay for the Projects.
G. Section 33445 of the Health & Safety Code, part of the California
Redevelopment Law, provides that the Agency may pay for all or part of the
cost of installation and construction of any building, facility, structure or
x:11 = •Ifj
other improvement which is publicly owned either within or without the
project area, upon the consent of the City, if the following findings can be
made:
1. That the public improvement is of benefit to the project area
or the immediate neighborhood in which the project is located and
helps to eliminate blight;
2. That no other reasonable means of financing the publicly
owned improvement is available to the community; and
3. That the payment of funds for the cost of the publicly owned
improvement is consistent with the Implementation Plan.
H. The Agency and City find that the Projects will be of benefit to the
merged Project Area as well as benefit the immediate neighborhood and all
residents and visitors to the City. This finding is supported by the fact that
public improvements in general facilitate the removal of blight and help
create a safe, more cohesive and economically dynamic community.
Development of library, park and recreational facilities, as well as public
parking and open space improvements assist in removal of blight within
densely populated neighborhoods currently underserved with these types of
amenities. Public safety and street improvements eliminate blight, improve
traffic flow, increase the safety of residents, promote job create and
promote business attraction and retention. The City, public and business
community will significantly benefit from the proposed public facilities on the
Schedule of Projects. These public improvements will beautify public
streets, promote business, and improve public infrastructure necessary to
spur economic revitalization in the Project Area.
1. The City has determined that it lacks funds to pay for the Projects at
this time, and there are no other reasonable means of financing said
improvements. It has been difficult for the City, by itself, to provide
sufficient funds to support the implementation of major public projects,
programs and activities. The limited resources of the City's General Fund
are committed to previously incurred obligations and planned projects.
J. The Agency and the City further find and determine that the payment
of funds for the implementation of the public projects, programs and
activities is consistent with the Implementation Plan adopted pursuant to
Health and Safety Code Section 33490.
K. The Agency and City find that it is in the best interests of the City and
8OB-91
the common benefit of residents, employees, business tenants and
property owners within the Project Area and the City as a whole for the
Projects to be implemented and developed.
L. The use of funds in the Agency's low and moderate income housing
fund for the Projects located outside of the Project Area can be used in
accordance with Section 33334.2 of the CRL because the use of such
funds will be of benefit to the Project Area.
M. The Agency Board and City Council have received and heard all oral
and written objections to the proposed payments by the Agency to the City
for the Projects as described in the Agreement, and to other matters
pertaining to this transaction, and all such oral and written objections are
hereby overruled.
N. The Agency Board hereby finds and determines that the foregoing
findings are true and correct.
Section 2. The Agency hereby consents to the payment by the Agency to the
City of up to $210,000,000.00 in Agency funds from the Merged Project Area for these
public projects, programs and activities, in accordance with that certain Cooperative
Agreement to be executed between the Agency and the City.
Section 3. The Executive Director of the Agency, or his/her designee, is hereby
authorized to take all steps, and to sign all documents and instruments necessary to
implement and carry out and implement the Cooperative Agreement, and to administer
the Agency's obligations, responsibilities and duties to be performed under the
Cooperative Agreement on behalf of the Agency.
Section 4. The Executive Director of the Agency, or her/his designee, is hereby
authorized to execute the Cooperative Agreement on behalf of the Agency, together with
such non-substantive changes as may be approved by the Agency Executive Director
and the Agency General Counsel.
Section 5. The Recording Secretary for the Agency shall attest to and certify
the vote adopting this Resolution.
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8OB-92
ADOPTED this day of , 2011.
Miguel A. Pulido
Chair
APPROVED AS TO FORM:
Joseph Straka, Interim General Counsel
By:
Lisa E. Storck
Assistant Counsel
AYES: Boardmembers:
NOES: Boardmembers:
ABSTAIN: Boardmembers:
NOT PRESENT: Boardmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Secretary of the Agency, do hereby attest to and certify the attached
Resolution No. 2011- to be the original resolution adopted by the Community
Redevelopment Agency of the City of Santa Ana on , 2011.
Date:
Secretary, Community Redevelopment Agency
5
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8OB-94
COOPERATIVE AGREEMENT BETWEEN THE
COMMUNITY REDEVELOPMENT AGENCY
AND THE CITY OF SANTA ANA FOR THE
PAYMENT OF COSTS ASSOCIATED WITH CERTAIN
REDEVELOPMENT AGENCY FUNDED
PROJECTS/PROGRAMS
THIS COOPERATIVE AGREEMENT is entered into this 7s' day of March, 2011, by and
between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a
public body corporate and politic (the "Agency"), and the CITY OF SANTA ANA, a charter city
and municipal corporation duly organized and existing under the Constitution and laws of the State
of California (the "City").
WITNESSETH
A. The Agency is undertaking certain activities necessary for the execution of the City
of Santa Ana redevelopment projects (the "Projects") under the provisions of the California
Community Redevelopment Law (Health and Safety Code Section 33000 et seq.) ("CRL") and
pursuant to the Redevelopment Plan for the Projects.
B. The intent of the Redevelopment Plan is, in part, to provide for the construction and
installation of necessary public infrastructure and facilities and to facilitate the repair, restoration
and/or replacement of existing public facilities and to perform specific actions necessary to promote
the redevelopment and the economic revitalization of the Project Areas; to increase, improve and
preserve the community's supply of low and moderate income housing, some of which may be
located or implemented outside the Project Areas; and to take all other necessary actions to
implement the redevelopment plans for the respective Project Areas and to expend tax increment to
accomplish the goals and objectives of the respective redevelopment projects.
C. The Agency has adopted its Five-Year Implementation Plan (2010/11-2014/15)
for the Merged Project Area, as amended from time to time (the "Implementation Plan"), with
established goals to support affordable housing, economic development, community
revitalization, and institutional revitalization. To implement the projects, programs and activities
associated with each goal ("Projects"), the Agency has made redevelopment fund commitments
based on estimated available tax increment revenue and debt financing structures.
D. The Agency and City of Santa Ana (the "City") wish to cooperate with one
another to bring about the redevelopment of the Project Area and accomplish various projects
and programs set forth in the Redevelopment Plan and the Implementation Plan. Pursuant to
Section 33220 of the Community Redevelopment Law (Health and Safety Code section 33000,
et seq.) (the "CRL") certain public bodies, including the City may aid and cooperate in the
planning, undertaking, construction, or operation of redevelopment projects.
E. In considering the Agency's desire to ensure timely implementation and
EXHI?IT 4
8OB-95
completion of the Projects, the Agency wishes to enter this Agreement with the City for the
pledge of net available tax increment to finance the Projects. The purpose of this Agreement is
to facilitate the implementation of the Projects and to provide funding necessary to effectuate the
completion of the Projects with net available tax increment in this current fiscal year and
forthcoming fiscal years. "Net tax increment" is defined as gross tax increment, less County
Administrative Fees, statutory pass-throughs and debt service. By approving and entering into
the Agreement, the Agency will approve the pledge of net available increment from the Project
Area to pay for the Projects.
F. The City and Agency by resolution have each found that the use of Agency
redevelopment funding for the Publicly Owned Improvements included herein is in accordance with
Section 33445 and 33445.1 of the CRL and other applicable law. Such Council and Agency
resolutions are each based on the authority, with the consent of the Council, to pay all or part of the
cost of the installation and construction of any building, facility, structure, or other improvement
which is publicly owned, either within or outside a Project Area, if the City Council makes certain
determinations.
G. By approving and entering into this Agreement, the Agency has approved the pledge
of net available tax increment from the Project Areas to pay for the Projects and Programs.
H. The obligations of the Agency under this Agreement shall constitute an indebtedness
of the Agency for the purpose of carrying out the Redevelopment Plan for the Merged Project Area.
1. The Recitals are an integral part of this Agreement and set forth the intentions of the
parties and the conditions on which the parties have decided to enter into this Agreement.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
AGENCY OBLIGATIONS
A. The Projects are those projects, programs and activities which are listed in the attached
Implementation Plan. The Agency wishes to pay to the City an amount equal to the cost to the City
to carry out the Projects. The Agency's obligations under this agreement, including without
limitation the Agency's obligation to make the payments to the City required by this Agreement,
shall constitute an indebtedness of the Agency for the purpose of carrying out the redevelopment of
the Merged Project Area and are obligations to make payments authorized and incurred pursuant to
redevelopment law. The obligations of the Agency set forth in this Agreement are contractual
obligations that, if breached, could subject the Agency to damages and other liabilities or remedies.
B. The obligations of Agency under this Agreement shall be payable out of net available tax
increment, as defined in above Recitals and/or as defined or provided for in any applicable
constitutional provision, statute or other provision of law now existing or adopted in the future,
levied by or for the benefit of taxing agencies in the Merged Project Area, and allocated to the
Agency and/or any lawful successor entity of the Agency and/or any entity established by law to
2
x96111:1&011161,
carry out any of the redevelopment plans for the Merged Project Area and/or expend tax increment
or pay indebtedness of the Agency to be repaid with tax increment, pursuant to Section 33670 of the
CRL or any applicable constitutional provision, statute or other provision of law now existing or
adopted in the future. In the event that additional funds are required in order to make the Agency
payments to the City required by this Agreement, the Agency shall make such other payments from
income received by the Agency from its projects and programs or any other additional funds
available to it.
C. The indebtedness of Agency under this Agreement shall be subordinate to the rights of
the holder(s) of any existing bonds, notes or other instruments of indebtedness (all referred to herein
as "indebtedness") of the Agency incurred or issued to finance the Merged Project Area, including
without limitation any pledge of tax increment revenues from the Merged Project Area to pay any
portion of the principal (and otherwise comply with the obligations and covenants) of any bond(s)
issued or sold with respect to the Merged Project Area.
2. CITY OBLIGATIONS
A. The City shall accept any funds offered by the Agency pursuant to this Agreement and
shall devote those funds to completion of the projects, programs and activities by (i) reimbursing the
City of using such funds to make City expenditures to perform the work required to carry out and
complete the Projects; (ii) utilizing such funds to pay debt service on bonds or other indebtedness or
obligations that the City has or will incur for such purposes; and/or paying such funds into a special
fund of the City to be held and expended only for the purpose of satisfying the obligations of the
City hereunder.
B. It is the responsibility of the City to pay all development and construction costs in
connection with the Projects from funds paid to the City by the Agency under this Agreement.
C. The City shall perform its obligations hereunder in accordance with all applicable
provisions of federal, state and local laws, including its obligation to comply with environmental
laws such as CEQA, and shall timely complete the work required for each of the Projects set forth in
the Plan.
COMPENSATION AND METHOD OF PAYMENT
The Agency shall contribute to the projects, programs and activities set forth in the
Implementation Plan in an amount not to exceed Two Hundred Ten Million Dollars
($210,000,000.00), with the breakdown of Project costs as shown in Exhibit A attached hereto and
incorporated herein. The Agency shall reimburse the City for the cost to the City of performing its
obligations hereunder. The amount to be paid by the Agency hereunder shall be paid in the same
fiscal year as the year in which the debts are incurred by the City.
4. LIABILITY AND INDEMNIFICATION
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In contemplation of the provisions of Section 895.2 of the Government Code of the State of
California imposing certain tort liabilityjointly upon public entities solely by reason of such entities
being parties to an agreement as defined by Section 895 of said Code, the parries hereto, as between
themselves, pursuant to the authorization contained in Section 895.4 and 895.6 of said Code, will
each assume the full liability imposed upon it, or any of its officers, agents or employees by law for
injury caused by negligent or wrongful act or omission occurring in the performance of this
Agreement to the same extent that such liability would be imposed in the absence of Section 895.2
of said Code. To achieve the above-stated purpose each party indemnifies and holds harmless the
other party for any loss, costs or expense that may be imposed upon such other party solely by
virtue of said Section 895.2. The provisions of Section 2778 of the California Civil Code are made a
part hereof as if fully set forth herein.
5. SEVERABILITY
If any term, provision, covenant or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall
continue in full force and effect unless the rights and obligations of the parties have been materially
altered or abridged by such invalidation, voiding or unenforceability.
6. EFFECTIVE DATE OF AGREEMENT
This Agreement shall take effect from and after the date of adoption and approval by the
City and the Agency pursuant to official action of the governing bodies thereof and shall be
effective for a duration not to exceed the time necessary for the City to complete the work and for
the Agency to pay the City in full. This Agreement shall apply to all activities carried out by the
City as set forth in Section 1 hereto.
7. BINDING ON SUCCESSORS
This Agreement shall be binding on and shall inure to the benefit of all successors and
assigns of the parties, whether by agreement or operation of law.
IN WITNESS WHEREOF, the parties hereto have executed this Cooperative Agreement the date
and year first above written.
ATTEST; CITY OF SANTA ANA
?9611 : •11967
Maria D. Huizar
Clerk of the Council
ATTEST:
Maria D. Huizar
Secretary
APPROVED AS TO FORM:
Joseph Straka
Interim City Attorney/Agency General
Counsel
By: Lisa E. Storck
Assistant City Attorney/Assistant Counsel
By
David N. Ream
City Manager
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA
By:
Nancy T. Edwards
Interim Executive Director
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