Presented by: MMASC “Redevelopment 101” A.C. Lazzaretto & Associates October 4, 2001

Background & Introduction Presented By: Andy Lazzaretto

Page 3 of 40 Redevelopment Background n History of Redevelopment Section of Health & Safety CodeSection of Health & Safety Code n Purpose of Redevelopment Eliminate Substandard ConditionsEliminate Substandard Conditions

Page 4 of 40 Redevelopment Agency n Separate Legal Entity n City Council Acts as Agency Board Conflict of Interest StatementsConflict of Interest Statements

Page 5 of 40 Redevelopment Agency Powers n Clear, Grade, & Prepare Acquired Land n Construct Public Improvements n Encourage Public & Private Improvements n Acquire Land for Public or Private Reuse Negotiated PurchaseNegotiated Purchase Eminent DomainEminent Domain

Page 6 of 40 Eminent Domain n Used as a Last Option n 4/5 Agency Vote Required n Fair Market Value Must be Paid Determined by Outside AppraiserDetermined by Outside Appraiser n Court is an Option if No Agreement Can Be Reached n Relocation Benefits

Page 7 of 40 Relocation Benefits n Assistance in Finding a New Location n Payments to Help Cover Moving Costs Includes Notifying Existing CustomersIncludes Notifying Existing Customers Includes Printing New Letterhead, Business Cards, etc.Includes Printing New Letterhead, Business Cards, etc. n Differential Payments for Increased Rent n Payments for Fixtures & Equipment n “Goodwill” Eligibility

Property Value Growth

Estimated Annual Tax Increment

Total Estimated Tax Increment

Page 11 of 40 Affordable Housing n 20% Set-Aside n Increase, Improve, or Preserve Affordable Housing Supply n Duration of Affordability Owner-OccupiedOwner-Occupied RentalRental n Replacement Housing

Adoption Process Presented by: Dominic Lazzaretto

Page 13 of 40 Planning Commission Sets Boundaries n Survey Area n Can Include Non-contiguous Subareas n Blight Study n Preliminary Plan n Notification of Residents, Property Owners, and Businesses Offered ConsultationOffered Consultation Information AvailableInformation Available Notified of Public HearingNotified of Public Hearing n Project Area Committee

Page 14 of 40 Preliminary Report/Report to Council n Reasons for Selecting Project Area n Description of Conditions n Urbanization Requirement n Financing Methods n Specific Projects Proposed by Agency n Description of How Actions will Eliminate Blighting Conditions

Page 15 of 40 Preliminary Report/Report to Council (cont’d) n County Fiscal Officer’s Report & Analysis n Implementation Plan Specifically Outlines First Five Years of PlanSpecifically Outlines First Five Years of Plan n Neighborhood Impact Report

Page 16 of 40 Redevelopment Plan n Sets Goals & Objectives n Establishes Proposed Activities n Time Limits 12 Years for Eminent Domain12 Years for Eminent Domain 20 Years to Incur Debt20 Years to Incur Debt 30 Years for Active Life30 Years for Active Life 45 Years to Repay Debt45 Years to Repay Debt n Conformity to General Plan & Zoning Regulations

Page 17 of 40 Joint Public Hearing n Notice Published in Local Paper n Mailings n Evidence for & Against Adoption n All Objections Must be Heard Responses, in Writing, Before Plan Can be AdoptedResponses, in Writing, Before Plan Can be Adopted

Page 18 of 40 Ordinance Adopting Redevelopment Plan n Findings of Agency n Certification of Environmental Impact Report n Two Readings n Effective 30 Days After Second Reading

Specifics of Blight Presented by: Dominic Lazzaretto

Page 20 of 40 Types of Blight n Physical Deterioration n Economic Deficiencies

Page 21 of 40 Physical Deterioration n Buildings in Which it is Unsafe or Unhealthful for Persons to Live & Work n Factors that Prevent, or Substantially Hinder, the Economically Viable Use or Capacity of Buildings or Lots n Incompatible Uses Which Prevent the Economic Development of Those Parcels or Other Portions of the Project Area

Page 22 of 40 Physical Deterioration (cont’d) n Subdivided Lots of Irregular Form & Shape & Inadequate Size for Proper Usefulness & Development that are in Multiple Ownership n Inadequate Public Improvements

Page 23 of 40 Economic Deficiencies n Depreciated or Stagnant Property Values n Abnormally High Business Vacancies n Abnormally Low Lease Rates n High Turnover Rates n Excessive Vacant Lots n A Lack of Necessary Commercial Facilities Normally Found in Neighborhoods

Page 24 of 40 Economic Deficiencies (cont’d) n An Excess of Bars, Liquor Stores or Businesses that Cater to Adults that Has Led to Problems of Public Safety and Welfare n High Crime Rate n Properties That Contain Hazardous Wastes That Require the Use of Agency Authority

Vacancies, Age, Multiple Ownership, Dilapidation

Vacancies, Hazardous Waste, Deterioration, Deferred Maintenance

Dilapidation, Graffiti, Vacancies, Hazardous Waste, Irregular Shape (Grading)

Dilapidation, Deterioration, Code Violations, Deferred Maintenance

Code Violations, Public Improvements, Parking

Dilapidation, Deterioration, Code Violations, Deferred Maintenance

Hazardous Waste, Multiple Ownership, Vacancies, Poor Design

Safety, Public Improvements

Dilapidation, Deterioration, Code Violations, Public Improvements (1994)

Dilapidation, Deterioration, Code Violations, Public Improvements (1996)

Incompatible Uses, Age, Design, Parking

Obsolescence, Design Issues

Redevelopment Project Examples Presented by: Andy Lazzaretto

Page 40 of 40 Examples of Typical Redevelopment Projects n Santa Fe Springs Golden Springs n Beautiful Downtown Burbank n La Habra Imperial Highway n La Mirada Affordable Housing n Fresno Grizzlies Baseball Stadium