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HomeMy WebLinkAbout01. CDC 5-yr Implement Plan AGENDA MEMO DATE: January 26, 2010 TO: Chair and Members of the Community Development Commission FROM: Office of the Executive Director By: Brian Saeki, Director of Community Development SUBJECT: FIVE-YEAR IMPLEMENTATION PLAN FOR THE DOWNEY REDEVELOPMENT PROJECT AND WOODRUFF INDUSTRIAL PROJECT AREAS FOR THE PERIOD 2010 - 2014 RECOMMENDATION: Staff recommends that the Commission approve the attached Implementation Plan for both the Downey Redevelopment Project and the Woodruff Industrial Project Areas for the period from 2010 through 2014. BACKGROUND Pursuant to California Redevelopment Law (CRL) and Section 33490 of the Health and Safety Code, a redevelopment agency is required to update its Implementation Plan (Implementation Plan) every five years for all redevelopment project areas. This section of CRL requires that the Implementation Plan contain specific goals, objectives, actions, and projects for the redevelopment agency to pursue during the next five-year period. The Implementation Plan must include the redevelopment agency’s plan for the continued alleviation of blight in the project areas, and compliance with the agency’s affordable housing obligations during the period covered by the Implementation Plan. A redevelopment agency is required to hold a public hearing on the proposed Implementation Plan for the purpose of receiving comments and testimony from interested parties. DISCUSSION The Downey Community Development Commission (CDC) contracted with a consulting firm, Economic & Development Specialists, to assist with the preparation of the proposed Five Year Implementation Plan. The attached Five Year Implementation Plan is comprised of two plans: a non-housing plan and an affordable housing plan. The non-housing section revisits the initial goals and objectives established for the CDC when the project areas were first adopted, and provides an action plan for the next five years. This section also provides an estimate of tax increment revenue projections and recommends projects, programs, and funding allocations for the CDC to pursue to continue the alleviation of blight in both project areas. The affordable housing section of the Implementation Plan provides an overview of the CDC’s housing production requirements and includes a projection of annual CDC housing resources. This part of the Implementation Plan also identifies housing production goals for the application of anticipated housing revenues. CITY OF DOWNEY, CALIFORNIA Implementation Plan January 26, 2010 Page 2 The following are highlights included in the proposed Implementation Plan: The Implementation Plan contains an historical overview of the Agency and its major accomplishments since its inception. The Implementation Plan includes a projection of tax increment revenues for each of the next five years. These estimates include an annual increase of two percent each year for the next five years. The total tax increment revenue projection is $22 million. As noted in the Implementation Plan, a significant portion of the tax increment income will go towards existing debt obligations, including repayment of loans to the City of Downey, payment of tax allocation bonds, Agency administrative expenses, and deposits to the housing set-aside fund. The Implementation Plan considers the impact resulting from a reduction to revenues in the amount of $1.7 million. This is a result of the State of California (State) taking tax increment funds away from redevelopment agencies to cover State budget shortfalls. The Implementation Plan recommends that the Agency focus its resources on activities that include: the completion and implementation of the Downtown Specific Plan, incentive programs for signage and façade improvements, a business attraction and retention program, establishing of a downtown business improvement district, and increasing cultural event programming in the downtown area. The Implementation Plan includes a section on the Agency’s housing production obligations. Accordingly, the Agency has produced 125 affordable housing units since it inception and currently has a 20 unit surplus on its replacement housing obligation. The Implementation Plan projects an obligation for the CDC to produce a minimum of 45 low and moderate-income housing units during the next five years. It is anticipated that these units will be created with planned redevelopment of the Verizon and Avenue Theatre sites. The Implementation Plan estimates the Agency could receive an estimated $4.5 million in housing set-aside funds over the upcoming five-year period. This projected amount would likely be sufficient to finance housing units needed to satisfy the CDC’s housing production obligations. FISCAL IMPACT: Adoption of the 2010-2015 Implementation Plan will have no direct fiscal impact on the CDC budget.