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STAFF REPORT
Arcadia Redevelopment Agency
DATE: February 15, 2011
TO: Chair and Members of the Agency Board
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director] .
By: Jerry Schwartz, Economic Development Manager fig
SUBJECT: REDEVELOPMENT AGENCY PROJECT STATUS AND UPDATE
BACKGROUND
In December 2009, the Redevelopment Agency approved the latest Five Year
Implementation Plan, which covers the period of 2010 -2015. The Implementation Plan
includes goals for the Agency for both general redevelopment and affordable housing.
It was approved during a very difficult time for the economy, and it took vision for the
Agency to recognize the opportunities that might be available. During the first year
covered by the Plan, the Agency had significant accomplishments, and provided
direction that would allow progress to continue in 2011. These were important steps for
the community. The proposal by Governor Brown to end redevelopment in California
could not have been anticipated when the Agency approved the Implementation Plan.
This status report provides the impetus for the Agency to review existing goals, its
recent accomplishments, and to identify priority projects for future funding.
DISCUSSION
Governor Brown's proposed 2011 -2012 State budget includes a proposal to
immediately end redevelopment in California. The proposal would take funds that
currently accrue to redevelopment agencies for investment in local communities to
create and preserve jobs and fight blighting conditions, and distribute them to counties,
cities, and schools. The proposal does not address long term debt by agencies, such
as tax allocation bonds. Of course, ARA closed on its latest bond issue in September
2010, creating debt that won't be fully paid off until 2026.
There is still much that is unknown about the Governor's proposal, including exactly
how affordable housing funds would be handled. During the first week of February,
both Senate and Assembly Committees held hearings on the proposal to end
redevelopment. From past experience, we know that there are usually many changes
between the Governor's proposed budget and the version that is voted on by the State
Legislature. We also know that the State budget may not be voted on until June or July.
As such, while the Governor's proposal could have dire consequences, the proper
course of action is for the Agency to continue to pursue its goals as established in the
Implementation Plan.
Attachment 1 is a list of projects and activities that the Agency has committed to or is
considering since approval of the Implementation Plan in December 2009. Many of
these are projects that can be identified for priority funding. Additionally, included as
Attachment 2 are Tables 9 -13 from the Implementation Plan that reflect the range of
projects that are part of the long term planning by the Agency. Any priorities identified
by the Agency would be pursed as opportunities become available.
RECOMMENDATION
Provide direction.
Approved:
Donald Penman
City Manager /Executive Director
Attachments: Attachment 1- List of Projects and Activities
Attachment 2- Implementation Plan Tables 9 -13
ARA Project Status and Update
February 15, 2011
Page 2
Attachment 1
AGENCY COMMITMENTS AND /OR RECENT PROJECTS
• Property Acquisition — 101 - 111 and 121 -159 North Santa Anita Avenue
• Issuance of Tax Allocation Bonds — provided $9.66 million to Agency
• Repayment of $4,045,715 to low /mod housing fund to clear HCD audit finding
• Commercial Facade Rehabilitation Program
• Installation of new banners in the downtown
• Grading and paving of lot at 21 Morlan Place and leasing to Rusnak for car storage
• "Shop Arcadia" campaign
• Summer restaurant discount program
• Negotiations with Rusnak /Mercedes about expansion in Arcadia
• Issuance of an RFP for Downtown Parking Study
• Campus Commons Senior Housing Project
PROJECTS UNDER CONSIDERATION
• Public Improvements for Gold Line extension — Pedestrian and Transit Plaza improvements
• Redevelopment of post office and adjacent properties
• Land Acquisition for project adjacent to Gold Line Station
• Support for newly established Arcadia Downtown Business Association
• Landscape /Sidewalk "Refresh" project of the Downtown 2000 improvements
• Fire Department /Police Department training facility at US Forest Service site
• Landscape /Beautification of 1 -210 onramps
• 15 & 19 Lucile Street Low Income Apartments — 9 unit affordable housing project
Attachment 2
Table 9
Ongoing Programs, Projects, and Activities
Title of Proiect Estimated Amount or Cost
Payment to 2001 bondholders $1.68 million annually (through 2023)
Payment to the Low /Moderate Income For FY 2009 -2010 - $888,000
Housing Fund (20% of gross T.I. annually)
Economic Development Operations For FY 2009 -2010 - $670,000
(Redevelopment and Housing)
Payment to LA County Auditor - Controller 25% of tax increment growth since 2003 -
(per SB 211, Council Ordinance 2181) 2004, plus an additional 21 % after 2012-
2013. Estimate for 2009 -2010 - $254,000.
Reimbursement to Church in Arcadia for $32,000
Temporary Relocation (thru August 2010)
Table 10
Short Term Projects, Programs & Activities —1 -3 Years
Title of Proiect Proiect Site Estimated Amount
Land Acquisition (Rusnak) Rod's Grill, Elk's Lodge $4 million (including cost
and Dalgrens plus vacation of relocation) — potential
of Morlan Place bond proceeds
Agency Bond Issue — Project wide New proceeds could range
refunding of existing 2001 from $8 — 10 million;
bonds and separate issue to possible in solid bond
generate new funds market
Commercial Facade Commercial /Industrial $50,000 for FY 2009 -2010;
Rehabilitation Program zones in the Project Area probable funding increase
in 2010 -2011
ERAF payment to Los Required by State Law FY 2009 -2010 - $1,547,696
Angeles County (unless CRA lawsuit is FY 2010 -2011 - $318,643
successful)
Downtown - Banner Huntington Drive /First $100,000
Program and Avenue
Marketing/Outreach
Acquisition of 400 Rolyn 400 Rolyn Place $2.1 million
Place
Grading and Paving 21 Morlan Place $150,000
Traffic Improvements in Various sites $200,000
Project Area
Gold Line Station Public Including matching funds $4,650,000
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Improvements for street improvements and
the transit plaza, parking
structure facade treatment,
retail space in the parking
structure, bridges and
abutment walls, and station
upgrades
Gold Line Station — Second Agency portion of potential $2,000,000
Pedestrian Access cost
Gold Line Station — Commercial /industrial area $10,000,000
Acquisition/Relocation for around Front St, Colorado
private development Blvd., First St., St. Joseph
St., La Porte St./ Santa
Anita Ave., Santa Clara St
Table 11
Intermediate Term Projects, Programs & Activities — 3 -6 Years
Title of Project Project Site Estimated Amount
Business Commercial /Industrial $400,000
Incentive /Commercial zones in project area
Facade Rehabilitation
Development Incentives to Parking District No. 1, $5,000,000
Redevelop Downtown
Parking District No. 1
Parking District No. 1 area; 120 -136 East Wheeler $2,000,000
Acquisition, Relocation, Avenue
Development
Farmer's Market Downtown Area $100,000
Gold Line Station Public Including matching funds $4,650,000
Improvements for street improvements and
the transit plaza, parking
structure facade treatment,
retail space in the parking
structure, bridges and
abutment walls, and station
upgrades -
Gold Line Station — Second Agency portion of potential $2,000,000
Pedestrian Access cost
Gold Line Station — Commercial /industrial area $10,000,000
Acquisition/Relocation for around Front St, Colorado
private development Blvd., First St., St. Joseph
St., La Porte St./ Santa
Anita Ave., Santa Clara St
18
Table 12
Long Term Projects, Programs & Activities — Six (6) or More Years
Title of Project Project Site Estimated Amount
Gold Line Station Public Commercial /industrial area $5,000,000
Improvements around Front St, Colorado
Blvd., First St., St. Joseph
St., La Porte St./ Santa
Anita Ave., Santa Clara St.
Gold Line Station — Commercial /industrial area $10,000,000
Acquisition/Relocation for around Front St, Colorado
private development Blvd., First St., St. Joseph
St., La Porte St./ Santa
Anita Ave., Santa Clara St
Second Avenue /Huntington Huntington Drive /Second $3,000,000
Railroad Bridge Avenue bridge
Reconstruction/Repair
Santa Clara Street/Wash Santa Clara Street between $1,000,000
Bridge Second and Fifth Avenues
Reconstruction/Repair
A. Opportunity Projects, Programs, and Activities
The projects, programs, and activities listed in Table 13 have an indefinite time period
depending on City or Agency funds available, Council and Agency priorities,
development/owner /tenant interest, federal /state /county /foundation grants and loans
available, and market considerations.
Table 13
Opportunity Projects, Programs, and Activities
Title of Project Project Site Estimated Amount
Repayment of Agency debt Project Area $4,045,715 (per ARA
to Low /Mod Housing Fund resolution 201, to be paid
beginning in 2014)
Morlan Place Project 25 -159 N. Santa Anita $15,000,000
(Phase 2) Acquisition, Avenue, 5 -25 West
Relocation, Development Huntington Drive, 5 -19
Morlan Place
U.S. Forest Service 701 North Santa Anita $15,000,000
Acquisition & Relocation Avenue (10 +/- acres)
U. S. Forest Service 701 North Santa Anita $10,000,000
Development Avenue (10 +/- acres)
Northwest Corner, 101- 107 West Huntington $3,000,000
Huntington Drive and Santa Drive (commercial area)
19
Northwest Corner, 101- 107 West Huntington $3,000,000
Huntington Drive and Santa Drive (commercial area)
Clara Street; Acquisition,
Relocation, Development
South Santa Anita Avenue, 900 South Santa Anita area $2,500,000
Lucille Street; Acquisition,
Relocation, Development
East Duarte Road, North 101 — 167 East Duarte Road $6,000,000
side; Acquisition, (Santa Anita Avenue to
Relocation, Development South First Avenue)
Northeast corner, Santa 100 North Santa Anita $1,000,000
Anita Avenue and Wheeler Avenue
Street; Acquisition,
Relocation, Development
Post Office Block Project; 25 -31 East Wheeler Street, $15,000,000
Acquisition, Relocation, Post Office, 26 -30 East
Development Santa Clara Street, 57 North
First Street, 101 -125 North
First Street
Girl Scout Building; 57 North First Avenue $2,000,000
Acquisition, Relocation,
Development
Alta Street Project; 35 East Alta Street $300,000
Acquisition, Relocation,
Development
Public Facility Construction In or near project area; in $2,000,000
and Capital Improvement City and of benefit to
Project (s) project area
Install wireless technology Downtown — Project area $200,000
(wifi) in the downtown