HomeMy WebLinkAboutRDA AG PKT 2005-04-25 #4 AGENDA REPORT
DATE: April 25, 2005
TO: Chairperson and Members of the Redevelopment Agency
THRU: John B. Bahorski, Executive Director
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: PUBLIC HEARING - REQUIRED REVIEW OF
2000 -2005 IMPLEMENTATION PLAN
SUMMARY OF REQUEST:
Agency to conduct public hearing to allow for public comments on the required review of
the adopted "2000 -2005 Seal Beach Redevelopment Implementation Plan".
BACKGROUND:
Pursuant to Section 33490(c) of the California Health and Safety Code, the Redevelopment
Agency is conducting a public hearing for the purpose of "reviewing the redevelopment plan
and the corresponding implementation plan for each redevelopment project within the
jurisdiction and evaluating the progress of the redevelopment project." This hearing is
being held no earlier than 2 years and no later than 3 years after the adoption of the
redevelopment plan. The 2000 -2005 Seal Beach Redevelopment Implementation Plan was
adopted by the Redevelopment Agency on April 22, 2002.
The City of Seal Beach has two redevelopment plans that were adopted prior to December
31, 1993. These plans are for the Riverfront and Surfside Redevelopment Project Areas.
The 2000 -2005 Implementation Plan addresses both project areas. The Surfside Project
Area has been inactive for many years since its objectives were for a one -time project
(Construction of a sea -wall to protect ocean front residential homes from inundation during
heavy storms and high tides).
MAJOR SECTIONS OF ADOPTED IMPLEMENTATION PLAN:
The adopted Implementation Plan includes the following major sections:
• Introduction
• Relationship of Redevelopment Activities to Eliminating Blight
• Redevelopment Agency Housing Responsibilities
• Implementation Plan for Addressing Agency Housing Responsibilities
Agenda Item .cr4
Z:\My Documents\RDA\2000 -2005 AB 1290 Plan Review.RDA Staff Report.04- 25- 05.doc\LW\04 -13 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
Evaluation of Progress in Implementing Redevelopment Activities of the
2000 -2005 Implementation Plan:
As indicated within the adopted 2000 -2005 Implementation Plan, the Redevelopment
Agency has completed several projects and eliminated many of the blighting conditions
in the Riverfront Project Area. However, the Project Area is still characterized by several
parcels of undeveloped and unproductive raw land, including land from former oil and
gas uses. The major redevelopment activities undertaken since adoption of the plan or
currently being pursued by the Agency are summarized in the table presented below.
Each activity addresses one or more of the blighting conditions identified in the
Redevelopment Plan.
Additional actions taken since adoption of the 2000 -2005 Implementation Plan in 2002
are indicated in bold text.
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
Progress in Implementing Redevelopment Activities
Designated Current Blighting Project
Parcel Land Re -Use Conditions Description Status
1 Commercial Vacant Hotel and retail This property has been deed -
(Hellman Ranch project restricted for wetland
Property) entitlement restoration pursuant to
being sought decisions of the Coastal
Commission.
The City Council and
property owner are
currently investigating the
formation of a Joint Powers
Authority to take overall
responsibility for planning,
implementation, and long
term maintenance for
wetland restoration
purposes. The State of
California Wildlife
Conservation Board has
been negotiating with the
property owner on potential
acquisition of the deed -
restricted property.
2 Residential Existing oil /gas Future low The Agency pursued a
(Exxon /Chevron use density residential project on this site
Property) residential use but was unsuccessful in
securing a development
proposal. Exxon and
Chevron are currently
continuing remediation work
on site.
Remediation activities are
still ongoing.
•
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff fReport
April 25, 2005
Progress in Implementing Redevelopment Activities (Continued)
3 Residential Seal Beach Trailer Rehabilitation Oakwood Apartments
(Oakwood Park and conversion to completed.
Apartments, Tenant
A
p ownership In November 2000, the Seal
Seal Beach Beach Redevelopment
Trailer Park) Agency provided funding to
LINC Housing for the
purchase and rehabilitation
of the 125 -unit Seal Beach
Trailer Park, as well as
conversion of the trailer park
to tenant ownership. The
funding commitments for the
project included:
• Tax - exempt bond
issuance of $6.75 Million,
to be repaid by trailer
park revenues;
• State MPROP loan of $1
Million - MPROP has not
been funded as of yet;
• Bridge loan to LINC
housing of $1 Million,
provided from the
housing set -aside fund;
• Loan from the
redevelopment agency of
$1 Million from the
housing set -aside fund;
and
• • Grant from the
Redevelopment Agency
of $965,000 to LINC
Housing, for rental
subsidy over 12 years
from the date of
acquisition.
4 Residential Eliminated Low density Bridgeport project developed
(Bridgeport) residential as a planned residential
community of 176 homes.
5 Residential Eliminated Condominium An 80 -unit condominium
(Riverbeach) project project was developed in
1988.
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
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Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
Progress in Implementing Redevelopment Activities (Continued)
Designated Current Blighting Project
Parcel Land Re -Use Conditions Description Status
6 Public Eliminated Park Completed as Marina Park.
(Marina Park)
7 Residential Eliminated Low density Bridgeport project developed .
(Bridgeport) residential as a planned residential
community of 176 homes.
8 Commercial Eliminated Commercial A highway commercial center
(PCH Plaza) center completed at Pacific Coast
Highway and Fifth Street.
9 Commercial/ Vacant Hotel project to The Specific Plan identifies
Park be pursued this area as a potential site
(DWP Property) for hotel development. The
property has recently been
sold to a new owner, who is
holding property for improved
economic condition.
Property is currently listed
for sale.
10 Commercial/ Vacant Hotel project to The Specific Plan identifies
Park be pursued this area as a potential site
(DWP Property) for hotel development. The
property has recently been
sold to a new owner, who is
holding property for improved
economic condition.
Property is currently listed
for sale.
11 -17 Public Underutilized rail Greenbelt Completed the Greenbelt, a
(Greenbelt) right -of -way City -owned open space area
containing a senior facility,
new main public library, and
museum devoted to the
Pacific Electric Railroad Red
Cars.
18 Commercial Vacant Neighborhood Completed the Bay City
(Bay City commercial Center, a neighborhood
Center) center commercial center with
45,000 square feet of gross
leasable space.
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
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Public Hearing— Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
Progress in Implementing Redevelopment Activities (Continued)
Designated Current Blighting Project J
Parcel Land Re -Use Conditions Description Status
19 Commercial Abandoned Hotel and retail This is a state -owned
(State Lands project property deed - restricted for
Property) entitlement being commercial use only. Retail
sought was initially a component of
the Hellman Ranch project.
When the proposal for a golf
course on this property did
not proceed, the retail
component was also put on
hold.
This property may be
combined with Parcel 1,
discussed above for a
wetland restoration project.
20 Residential Vacant oil /gas fields Planned This parcel is the Hellman
(Hellman and farming residential Ranch project, consisting of
Ranch) community a 149 -acre site located on
the Seal Beach Wetlands.
Originally approved for 329
dwelling units, the plan has
been modified to 70 single -
family units, park and
restored wetlands due to site
constraints and California
Coastal Commission
determinations.
Residential development
plan was reduced to 64
buildable lots due to
cultural resource
mitigation issues.
Construction of model
homes is complete and
first phase construction of
14 lots is underway.
Proposed Redevelopment Agency Funded Projects, 2001 -2006
Consistent with the adopted 2000 -2005 Implementation Plan (Section II.B.3, page 9), the
City's Capital Improvement Plan (CIP) for FY 2001 /02 through FY 2003/04 identifies
the following public improvement projects using redevelopment tax increment funds:
❑ FY 2001/02 - $ 42,000: Library improvements.
Project Status: Project completed December 2001, Total Cost: $ 42,000
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
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❑ FY 2002/03 - $ 350,000: Corporation Yard NPDES /Water Quality Facilities.
Project Status: Project in Progress, Funds expended to Date - $80,000
❑ FY 2002/03 and 2003/04 - $ 2,300,000: West End Pump Station Replacement.
Project Status: Project has been submitted to Coastal Commission for required
Coastal Development Permit, Estimated Total Cost: $2,300,000.00
The ability to fund these necessary public improvement projects was the result of an Agency
bond refinancing approved by the Agency on December 28, 2000.
Redevelopment Housing Set - Aside Requirements:
Legislative Requirements /Definition of Terms
Sections 33334.2 and 33334.6 of the Health and Safety Code require redevelopment
agencies to set aside 20 percent of their tax increment into a low and moderate income
housing fund. The housing fund must be used to increase, improve, and preserve the
supply of affordable housing within the redevelopment project area. (Section 33334.3
(c)).
Section 33334.4 of the Health and Safety Code requires that the Agency expend, over the
duration of this implementation plan, moneys in the low and moderate income, housing
fund to assist housing for persons of very low income and housing for persons of low
income in at least the same proportion as the total housing units needed for each of these
income groups bears to the total number of units needed for moderate, low, and very low
income households in the City.
Redevelopment Housing Set - Aside Fund Projections:
As indicated within the Plan, the Riverfront Project Area has not been generating a
significant amount of tax increment funds. Between 1993 and 1997, the Agency has
deferred payments into the 20 percent housing set -aside fund. Repayment of the deferred
set -aside fund began in 1997, when overall Agency funds were sufficient to cover pre-
existing debt service requirements.
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2000 -2005 Ali 1290 Plan Review.RDA Staff Report.04 -25 -05
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Redevelopment Agency Staff Report
April 25, 2005
Housing Set -Aside Fund Projections
2000/ 2001/ 2002/ 2003/ 2004/
2001 2002 2003 2004 2005
20% Tax $183,396 $207,280 $211,085 $215,937 $220,911
Increment
Deferral $39,000 $0 $0 $0 $0
Repayments
Interest $89,000 $61,000 $61,000 $61,000 $61,000
Income
Total Set- $311,396 $268,280 $272,085 $276,937 $281,911
Aside Fund
At the time of adoption of the 2000 -2005 Implementation Plan the Agency had an
existing fund balance of $711,339 in the Housing Set -Aside Fund including the
2000/2001 set -aside funds referenced above, which would have increased to $1,711,339
in the event the MPROP Loan is funded and the Agency is reimbursed for the "bridge
loan" approved as part of the Seal Beach Trailer Park acquisition. The $1,711,339 and
the projected set -aside fund amounts for Fiscal Years 2001/2002 through 2004/2005 total
approximately $2,800,000. That amount was anticipated to be expended at the time of
adoption of the 2000 -2005 Implementation Plan as indicated in Table 3, Five -Year
Housing Assistance Goals - 2000 -2005, below.
However, at this time it is uncertain as to whether the MPROP loan will be funded and
the Agency subsequently reimbursed. If that is the ultimate situation, then the Agency
will receive payments of the "Bridge Loan" of $1,000,000 over a 30 -year time period at a
specified interest rate; thereby reducing the immediate funds available to the Agency by
$1,000,000.
Implementation Plan for Addressing Agency Housing Requirements:
Existing and Proposed Housing Programs
The housing programs for the five -year period of this plan are consistent with the Seal
Beach Housing Element (2000), which identifies the following housing goals:
❑ Facilitate the development of a variety of housing types for all income levels to meet
the existing and future housing needs of residents;
❑ Assist in the development of adequate housing to meet the needs of low and moderate
income households;
❑ Address, and where appropriate and legally possible, remove governmental
constraints to the maintenance, improvement, and development of housing;
❑ Maintain and enhance the existing quality of residential neighborhoods in Seal Beach;
❑ Promote equal housing opportunities for all persons regardless of race, color, national
origin, ancestry, religion, sex, marital status, or familial status.
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2000 -2005 AB 1290 Plan Review RDA Staff Report.04 -25-05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
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The proposed programs that address these goals are described below.
A. Home Improvement Program
Using set -aside funds, the Agency operates a rehabilitation program for owner-
occupied and renter - occupied units. For owner - occupied units, grants of up to
$10,000 are available to low and moderate income households to complete
exterior improvements, correct code compliance issues, health and safety
concerns, and install energy efficient systems, including weatherization. In
addition, deferred payment loans of up to $50,000 are available to low and
moderate income households. The loan becomes due and payable upon the sale
of the home, or is forgiven after 20 years.
In the past, the Agency has utilized set -aside funds to write off the interest on the
Federal Housing Authority Title I Program loans of up to $25,000. However, the
Title I program has been suspended, and the City has recently restructured the
program to expand the level of participation among homeowners, as indicated
above.
For single - family rental units, set -aside funds are used to provide low- interest
rehabilitation loans and rental subsidies for the rehabilitation of deteriorated rental
housing in the City.
B. Tenant Ownership of Seal Beach Trailer Park/Rehabilitation - Replacement
of Existing Units
Tenant Ownership:
To ensure the long -term preservation of Seal Beach Trailer Park as an important
affordable housing resource, the City worked with LINC Housing, a nonprofit
housing organization, to pursue tenant ownership of the park. The City was
awarded by the State Department of Housing and Community Development
(HCD) a $20,000 Technical Assistance grant to facilitate conversion of the park
to tenant ownership. Through the issuance of a revenue bond by the Agency,
potential approval of a MPROP Loan by the State of California and subsequent
loan to LINC housing, conversion of the park to tenant ownership was completed
in December 2000. Among the 125 units, 25 units have been deed - restricted as
housing affordable to very low income households and 75 units have been deed -
restricted as housing affordable to low /moderate income households. In addition,
the City provides ongoing rental assistance to offset the monthly rent increase
necessary to repay the bond. The rental assistance is for a period of 12 years with
a maximum funding commitment of $ 965,000.00.
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
Apri125, 2005
Rehabilitation Replacement of Existing Units:
In addition to the Agency assistance in the acquisition and rental assistance of the
Trailer Park, a substantial rehabilitation/replacement loan program is proposed at
a maximum loan amount of $50,000 for individual existing units within the
Trailer Park. Specific re -sale and equity sharing provisions would apply if the
property were sold to a non - qualified buyer.
Mortgage Assistance Loans
Using set -aside funds, the Agency would provide a mortgage assistance loan
program for first -time homebuyers. For owner - occupied units, loans of up to
$35,000 or 20% of the purchase price would be available to low and moderate
income households to purchase an existing residence, generally a condominium or
mobile home in the Seal Beach Trailer Park. Specific re -sale and equity sharing
provisions would apply if the property were sold to a non - qualified buyer. The
loan becomes due and payable upon the sale of the home, or is forgiven after 10
years.
C. Housing Production and Assistance Goals
Table 3 provides information that was set forth at the time of adoption of the
2000 -2005 Implementation Plan in terms of number of households that were
estimated to be assisted and amount of housing set -aside funds to be expended
over the five -year period (2000 -2005) of this implementation plan and the actual
number of households assisted and the funds spent between 2002 and 2005.
Please note that as of the date of this Staff Report the MPROP loan agreement has
not been completed and the Agency has not received any funds that were
anticipated as a result of the MPROP funding. Accordingly, the amount of
estimated funds and the number of households estimated to be assisted are not
what was anticipated, since the Agency does not have the $1,000,000 from that
anticipated funding source available to utilize.
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing— Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
Five -Year Housing Assistance Goals and Accomplishments
2000 -2005
d
Estimated Actual Estimated Set- Actual Set -
Program Households Households Aside Funds to Aside Funds
to be Assisted Assisted be Expended Expended
Home
Improvement 20 4 $ 1,000,000 $ 240,000
Program
Tenant
Ownership of
Seal Beach
Trailer Park
Acquisition of 120 120 ($1,000,000) ($1,000,000)
Park (Loan)
Rental Subsidy 25 62 $ 600,000 $ 720,000
for 5 Years
Replacement/
Rehabilitation 10 12 $ 500,000 $ 394,309
$ 169,811*
Mortgage s
Assistance 20 3 $ 700,000 $ 84,800
Loans
Total 50 22 $ 2,800,000 $1,608,920
Notes:
1. The $1,000,000 loan to LINC for acquisition of the park is expected to be repaid
back to the Agency within the time frame of this Implementation Plan. These
funds are proposed to be expended upon receipt within the time frame of this
Implementation Plan. Note: The MPROP Loan has not been funded by the
State of California and the Agency bridge loan has not been reimbursed.
2. Total Rental Subsidy is for 12 Years and will be allocated in future plans as
appropriate. Total subsidy is not to exceed $965,000.00
3. $500,000 of funding for this program will not be available until the MPROP Loan
is funded by the State of California and the Agency bridge loan is reimbursed.
Note: The MPROP Loan has not been funded by the State of California and
the Agency bridge loan has not been reimbursed.
4. $100,000 of funding for this program will not be available until the MPROP Loan
is funded by the State of California and the Agency bridge loan is reimbursed.
Note: The MPROP Loan has not been funded by the State of California and
the Agency bridge loan has not been reimbursed.
5. $400,000 of funding for this program will not be available until the MPROP Loan
is funded by the State of California and the Agency bridge loan is reimbursed.
Note: The MPROP Loan has not been funded by the State of California and
the Agency bridge loan has not been reimbursed.
As indicated above, of the available funds identified for use at the time of funding of the
MPROP Loan has not occurred, resulting in an available funding level of $1,800,000,
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
with funds expended or encumbered totaling $1,608,920 — 89.4% expended or
encumbered through February 2005. In addition to the above - indicated activities that
have been funded or encumbered, the Agency currently has a list of projects that are on
hold and on a waiting list. There are a total of 11 housing rehabilitation projects on hold
at this time, 5 throughout the City and 6 within the Seal Beach Trailer Park. There are
also 8 projects city wide on a wait list and 17 within the Seal Beach Trailer Park on the
wait list. These projects are not able to proceed due to the lack of available funds within
the Housing Set -Aside account to funds the projects.
INTENT OF ASSISTANCE PROGRAMS:
These programs are proposed to comply with the provisions of the State of California
regarding the use of Redevelopment Agency "Housing Set - Aside" funds. The programs
have been designed to assist identified groups of low- and moderate - income persons and
families that reside or are anticipated to reside within the City of Seal Beach over the
time period of 2000 -2005. These programs do not propose the use of funds for new
construction of living units within the City, with the exception of the replacement
program for units within the Seal Beach Trailer Park. All of the other programs are
proposed to assist current residents, both owners and renters, who would qualify under
the various program guidelines established within the Seal Beach Housing Assistance
Program Guidelines.
RECOMMENDATION:
Agency to conduct public hearing to allow for public comments on the required review of
the adopted "2000 -2005 Seal Beach Redevelopment Implementation Plan".
NOTED D APPR • ' ED:
1
e Whittenberg Jo:.: ahorski, Executive Director
Director of Development Servi • - s Redev ;i opment Agency
Attachments: (1)
Attachment 1: "2000 -2005 Seal Beach Redevelopment Implementation
Plan", prepared for the Seal Beach Redevelopment Agency
by Cotton/Bridges /Associates, dated April 2002
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2000 -2005 AB 1290 Plan Review.RDA Staff Report.04 -25 -05
Public Hearing — Review of 2000 -2005 Implementation Plan
Redevelopment Agency Staff Report
April 25, 2005
ATTACHMENT 1
"2000 -2005 SEAL BEACH
REDEVELOPMENT IMPLEMENTATION
PLAN ", PREPARED BY COTTON/
BRIDGES /ASSOCIATES FOR THE SEAL
BEACH REDEVELOPMENT AGENCY,
DATED APRIL 2002
13
2000 -2005 AB 1290 Plan Review.RDA StafReport.04 -25 -05
2000 -2005
Seal Beach Redevelopment
Implementation Plan
Seal Beach Redevelopment Agency
April 2002
Cotton /Bridges /Associates
747 E. Green Street, Suite 300
Pasadena, CA 91101
#1244.00
Table of Contents
page
I. Introduction 1
II. Relationship of Redevelopment Activities to Eliminating Blight 4
III. Redevelopment Agency Housing Responsibilities 9
IV. Implementation Plan for Addressing Agency Housing Requirements 10
List of Tables
1. Relationship of Goals to Eliminating Blight 6
2. Progress in Implementing Redevelopment Activities 7
3. Tax Increment Projections 9
4. Housing Set -Aside Fund Projections 13
5. Five -Year Housing Assistance Goals 16
List of Figures
1. Redevelopment Project Areas 3
I. Introduction
0
A. Purpose and Intent
The Community Redevelopment Law (Health and Safety Code Section 33000 and following) (the
"law') requires that each redevelopment agency in California adopt an implementation plan every
five years.
The implementation plan must present (1) specific goals and objectives of the agency; (2)
specific projects and expenditures proposed over the five -year period; and (3) the
relationship of the goals, objectives, and programs to eliminating blight and meeting
affordable housing requirements. The implementation plan must also include certain
information relating to an agency's affordable housing program.
B. Organization of the Implementation Plan
This document is the implementation plan for the Seal Beach Redevelopment Agency (the
"Agency ") for the five -year period beginning December 31, 1999. This Plan is organized into two
major sections. The first section sets forth a five -year strategy for the elimination of blight in the
Agency's Project Areas. The second section addresses the Agency's low and moderate income
housing obligations and use of the housing set -aside funds in the project areas.
Seal Beach Redevelopment Implementation Plan Page 1
C. Seal Beach Redevelopment Plan
The Seal Beach Redevelopment Agency has adopted Redevelopment Plans for two project areas:
• The Riverfront Redevelopment Project Area, initially adopted in 1969, and amended in
1974, 1975, 1981, 1986, 1989 and 1994; and
❖ The Surfside Project Area, initially adopted in 1982, and amended in 1994.
Riverfront Redevelopment Project Area
The Riverfront Redevelopment Project Area lies primarily along the San Gabriel River Channel,
with a small strip stretching northwest to southeast through the Old Town Portion of Seal Beach
(see Figure 1). The Project Area originally contained 104 acres, but subsequent amendments
have increased the total area to 205 acres. Approximately 160 acres are designated for
residential use while approximately 40 acres are allocated for commercial uses. The remaining
acreage is set aside for public use including facility improvements. The Redevelopment Plan for
the Riverfront Redevelopment Project Area ceases to be effective with regard to the original
territory of the project area in 2009, and ceases to be effective with regard to the remainder of the
project area in 2014.
Surfside Project Area
The Surfside Redevelopment Project was established in December 1982 and last amended in
1993. The boundaries included the beach community of Surfside and the ocean out to the three -
mile limit. The limited purpose of the Agency in adopting the Redevelopment Plan for this project
area (which was permissible under the Redevelopment Law at that time) was to eliminate
conditions of blight in the Project Area by building a seawall to protect the ocean front residential
uses from inundation during heavy storms and high tides. The wall was constructed at a cost of
$250,000, the amount of which was advanced by the City of Seal Beach to accomplish the actual
construction. All of the debt was paid back within a few years and at the present time the project
is inactive from the standpoint of further public involvement or generation of tax increment from
the Project Area. Without an amendment to the Redevelopment Plan, the Agency's authority to
establish loans, advances, and indebtedness with respect to this Project Area expired in 1987.
Since the Project Area no longer has any debt outstanding, the tax increment revenues have been
returned to the other taxing agencies. The Redevelopment Plan for this Project Area will cease to
be effective in 2022.
Page 2 Seal Beach Redevelopment Implementation Plan
Housing Resources
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Source: S eal Beach Redevelopment Plan, 1994; CBA, Inc., October 2000
100 City Boundary
1 Riverfront Redevelopment Area
2 Surfside Redevelopment Area
Figure 1
—
North 0 2,000 4,000 ft Redevelopment Project Areas
Page 3
Seal Beach Redevelopment Implementation Plan
11. Relationship of Redevelopment
Activities to Eliminating Blight
0
The Implementation Plan must (i) describe specific goals and objectives of the Agency for each
project area; (ii) identify specific programs, including potential projects, and estimates of
expenditures proposed to be made in the next five years; and (iii) identify specific projects, and
describe how the goals, objectives, and programs will eliminate blight in the project area.
The Surfside Project Area has no active or planned programs, the Agency no longer receives tax
increment funds in connection with the Surfside Project Areas, and the redevelopment plan no
longer permits the Agency to incur indebtedness in connection with the Surfside Project Area.
Therefore, this section of the Implementation Plan will discuss only the Riverfront Project Area.
A. Blight Conditions Assessment
1. Blighting Conditions
Eliminating blight is a fundamental objective of the Seal Beach Redevelopment Agency. At the
time of adoption, the Riverfront Project Area was characterized by undeveloped and unproductive
raw land, insufficient street systems and vehicular access, inadequate street lighting, absence of
utility services, and inadequate flood control facilities. In addition, the removal and relocation of
the Los Angeles Water and Power Steam Plant and the Dow Chemical Company Plant led to
losses in the land value of the area. Although much of the Project Area has been improved by the
Agency or by private development to eliminate or reduce this blight, a number of blighted parcels
remain in the Project Area.
2. Goals and Objectives
The goals and objectives for the Riverfront Project Area include:
❖ Eliminate the conditions of blight existing in the Project Area;
- Continue to pursue development projects for the remaining blighted parcels in the
Riverfront Project Area.
❖ Ensure, to the extent possible, that the causes of blight will either be eliminated or
protected against;
- Provide ongoing rental assistance and rehabilitation loan assistance to residents of
the Seal Beach Trailer Park
Page 4 Seal Beach Redevelopment Implementation Plan
❖ Encourage participation of owners and tenants in the redevelopment of the Project
Area;
d
- Assist property owners and nonprofit organizations to rehabilitate /acquire
deteriorated apartment buildings and place deed restrictions on some of the multi-
family units through the Acquisition, Rehabilitation, Deed Restriction, and Rental
Assistance of Aging Multi Family Properties Program.
❖ Encourage and ensure the rehabilitation, rebuilding, and development of the Project
Area;
- Provide funds for housing rehabilitation to 10 households through the Home
Improvement Program.
- Provide mortgage assistance loans to 5 households.
❖ Encourage and foster the economic revitalization of the Project Area;
- Pursue development of a Hotel project on the DWP property
• Redevelop and rebuild the public facilities in the Project Area to provide safer and
more efficient public services.
- Complete the West End Pump Station Replacement to eliminate flooding during
high storm water runoff incidents.
- Complete improvements to the City Library.
- Complete the Corporation Yard NPDES /Water Quality Facilities.
Seal Beach Redevelopment Implementation Plan Page 5
Each implementation plan must contain an explanation of how the Goals and Objectives will
eliminate blight within the Project area [Section 33490(a)(1)(A)]. Table 1 shows the relationship of
the Agency's goals and objectives to the elimination of blight in the Project Area.
Table 1
Relationship of Goals to Eliminating Blight
Blighting Conditions Eliminated
Goal Physical Economic
Conditions Conditions
Eliminate the conditions of blight
existing in the Project Area
Ensure, to the extent possible, that
the causes of blight will either be r/ t/
eliminated or protected against
Encourage participation of owners
and tenants in the redevelopment of
the Project Area
Encourage and ensure the
rehabilitation, rebuilding, and V
development of the Project Area
Encourage and foster the economic ✓
revitalization of the Project Area
Redevelop and rebuild the public
facilities in the Project Area to
provide safer and more efficient
public services
3. Redevelopment Activities Undertaken in the Project Area
The Redevelopment Agency has completed several projects and eliminated many of the blighting
conditions in the Riverfront Project Area. However, the Project Area is still characterized by several
parcels of undeveloped and unproductive raw land, including land from former oil and gas uses.
The major redevelopment activities undertaken since adoption of the plan or currently being
pursued by the Agency are summarized in Table 2. Each activity addresses one or more of the
blighting conditions identified in the Redevelopment Plan.
Page 6 Seal Beach Redevelopment Implementation Plan
Table 2
Progress in Implementing Redevelopment Activities
Current
Blighting Project
Parcel Designated Land Re -use Conditions Description Status
1 Commercial Vacant Hotel and retail This property has been deed - restricted
(Hellman Ranch Property) project for wetland restoration pursuant to
entitlement decisions of the Coastal Commission.
being sought
2 Residential Existing Future low The Agency pursued a residential project
oil / as use density on this site but was unsuccessful in
(Exxon /Chevron Property) g ty
residential use securing a development proposal.
Exxon and Chevron are currently
continuing remediation work on site.
3 Residential Seal Beach Rehabilitation Oakwood Apartments Completed
(Oakwood Apartments, Trailer Park and conversion In November 2000, the Seal Beach
Seal Beach Trailer Park) to tenant Redevelopment Agency provided
ownership funding to LINC Housing for the
purchase and rehabilitation of the 125 -
unit Seal Beach Trailer Park, as well as
conversion of the trailer park to tenant
ownership. The funding commitments
for the project included:
•� Tax - exempt bond issuance of $6.75
million, to be repaid by trailer park
revenues;
4 State MPROP loan of $1 million;
•3 Bridge loan to LINC housing of $1
million, provided from the housing
set -aside fund;
Loan from the redevelopment agency
of $1 million from the housing set -
aside fund; and
• Grant from the Redevelopment
Agency of $965,000 to LINC
Housing, for rental subsidy over 12
years from the date of acquisition.
4 Residential Eliminated Low density Bridgeport project developed as a
(Bridgeport) residential planned residential community of 176
homes.
5 Residential Eliminated Condominium An 80 -unit condominium project was
(Riverbeach) project developed in 1988.
6 Public Eliminated Park Completed as Marina Park.
(Marina Park)
Seal Beach Redevelopment Implementation Plan Page 7
Table 2
Progress in Implementing Redevelopment Activities
Current
Blighting Project
Parcel Designated Land Re -use Conditions Description Status
7 Residential Eliminated Low density Bridgeport project developed as a
(Bridgeport) residential planned residential community of 176
homes.
8 Commercial Eliminated Commercial A highway commercial center completed
(PCH Plaza) center at Pacific Coast Highway and Fifth
Street.
9 Commercial/ Park Vacant Hotel project to The Specific Plan identifies this area as a
(DWP Property) be pursued potential site for hotel development.
The property has recently been sold to a
new owner, who is holding property for
improved economic condition.
10 Commercial/ Park Vacant Hotel project to The Specific Plan identifies this area as a
(DWP Property) be pursued potential site for hotel development.
The property has recently been sold to a
new owner, who is holding property for
improved economic condition.
11 -17 Public Underutilized Greenbelt Completed the Greenbelt, a City-owned
(Greenbelt) rail right -of- open space area containing a senior
way facility, new main public library, and
museum devoted to the Pacific Electric
Railroad Red Cars.
18 Commercial Vacant Neighborhood Completed the Bay City Center, a
(Bay City Center) commercial neighborhood commercial center with
center 45,000 square feet of gross leasable
space.
19 Commercial Abandoned Hotel and retail This is a state -owned property deed-
. (State Lands Property) oil /gas uses project restricted for commercial use only.
entitlement Retail was initial a component of the
being sought Hellman Ranch project. When the
proposal for a golf course on this
property did not proceed, the retail
component was also put on hold.
20 Residential Vacant Planned This parcel is the Hellman Ranch
(Hellman Ranch) oil /gas fields residential project, consisting of a 149 -acre site
and farming community located on the Seal Beach Wetlands.
Originally approved for 329 dwelling
units, the plan has been modified to 70
single - family units due to site constraints
and California Coastal Commission
determinations.
Page 8 Seal Beach Redevelopment Implementation Plan
B. Five -Year Plan for the Elimination of Blight
1. Five -Year Goals and Objectives
J
The goals and objectives listed in Section A.2 remain appropriate for the 2000 -2005 period.
These goals and objectives address blighting conditions within the project area, and provide
general direction for Agency activities over the next five years.
2. Financial Assessment
The primary funding source for redevelopment agencies is tax increment revenues. Briefly stated,
and somewhat simplified, tax increment is the difference between property tax revenue generated
in a given year and the revenue generated in the year the redevelopment plan was adopted. This
difference in property tax revenue, the tax increment, is allocated to the redevelopment agency
annually for the purpose of eliminating the blighting conditions contained in the redevelopment
project area.
On an annual basis, the Riverfront Project Area generates approximately $1,000,000 in tax
increment. The majority of tax increment generated has been, and will continue to be, used to
repay debt.
Table 3
Tax Increment Projections
Fiscal Year: 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005
Tax Increment
Revenue $991,980 $1,036,398 $1,055,426 $1,079,686 $1,104,553
Debt Service ($672,665) ($676,448) ($674,760) ($672,362) ($674,530)
Housing Set -
Aside ($183,396) ($207,280) ($211,085) ($215,937) ($220,911)
Administration ($20,000) ($20,000) ($20,000) ($20,000) ($20,000)
Available Tax
Increment $115,919.00 $132,670.00 $149,581.00 $171,387.00 $189,112.00
3. Five -Year Programs, Projects, and Estimated Expenditures
The City's Capital Improvement Plan (CIP) for FY 2001/02 through FY 2005/06 identifies the
following public improvement projects using redevelopment tax increment funds:
• FY 2001/02 - Library improvement for $42,000
• FY 2002/03 - Corporation Yard NPDES /Water Quality Facilities for $350,000
• FY 2002/03 - West End Pump Station Replacement for $2,300,000
Seal Beach Redevelopment Implementation Plan Page 9
III. Redevelopment Agency
Housing Responsibilities
A fundamental purpose of redevelopment is to increase and improve the supply of affordable
housing in the community. The Law contains three types of requirements with respect to
affordable housing:
• Inclusionary Requirements (Section 33413 (b)): that a certain portion of new and
substantially rehabilitated housing be available at affordable housing cost to, and
occupied by, persons and families of low and moderate income.
• Replacement requirements (Section 33413 (a)): that certain low and moderate income
housing units destroyed or removed as part of a redevelopment project must be
replaced with an affordable unit.
• Set -aside requirements (Sections 33343.2, 33343.4, and 33343.6): that not less than
20 percent of tax increment revenue allocated to the agency must be expended to
increase, improve, and preserve the supply of low and moderate income housing in
the City.
A. Inclusionary Housing Requirements
Health and Safety Code Section 33413 (b)(1) requires that:
• At least 30 percent of all new and substantially rehabilitated units developed by an
agency be available at affordable housing costs to persons and families of low and
moderate income and be occupied by such persons and families, of which not less
than 50 percent be available at affordable housing costs to and occupied by very low
income households.
• At lease 15 percent of all new and substantially rehabilitated units developed within
the project area by other public and private entities be available at affordable costs to
persons and families of low and moderate income and be occupied by such persons
and families, of which not less than 40 percent be available at affordable housing
costs to very low income households.
Substantial rehabilitation means rehabilitation in the value that constitutes 25 percent
of the after rehabilitation value of the unit, inclusive of land value. Specifically:
• Substantial Rehabilitation Occurred Prior to January 1, 2002: Substantially
rehabilitated units refer to substantially rehabilitated multi - family rented units
with three or more units, or agency- assisted substantially rehabilitated single -
family units with one or two units.
Page 10 Seal Beach Redevelopment Implementation Plan
• Substantial Rehabilitation Occurred on or After January 1, 2002: Substantially
rehabilitated refers to Agency- assisted substantially rehabilitated multi - family
rented units with three or more units, or agency- assisted substantially ,
rehabilitated single - family units with one or two units.
These requirements do not apply to the Riverfront Project Area, which was formed prior to January
1, 1976 and to which territory was last added prior to January 1, 1976. The requirements do,
however, apply to the Surfside Project Area.
1. Housing Production in the Surfside Project Area
Existing Housing Production and Deed - Restriction
Project Areas are subject to housing production requirements, which ensure that a specified
percentage of new or rehabilitated housing is available at prices affordable to low and moderate
income households.
New Construction: Since adoption of the Surfside Project Area, only limited residential construction
has occurred, primarily as single -lot demolition /replacement or infill development.
Rehabilitated Units: No housing unit has been substantially rehabilitated in the Project Area.
Deed Restricted Units: No housing unit has been deed - restricted as affordable housing for low
and moderate income households in the Project Area.
Existing Affordable Housing Production Requirements
The limited residential development in the Surfside Project Area has generated a small affordable
housing production requirement. This requirement can be met by the 100 deed restricted units in
the Seal Beach Trailer Park, located in the Riverfront Project Area. These units can be counted on
a two for one basis in the Surfside project area for a total of 50 units, which would more than
offset the requirement generated by the limited residential development.
Future Production Potential
The Surfside Redevelopment Project Area is built out with no potential for future production.
Seal Beach Redevelopment Implementation Plan Page 11
B. Replacement Housing Requirements
1. Legislative Requirements /Definition of Terms
When residential units occupied by low and moderate income households are destroyed or
otherwise removed from the low and moderate income housing market as part of a
redevelopment project that is subject to a written agreement with the agency or where financial
assistance has been provided by the agency, the Agency must rehabilitate, develop, or construct;
or cause to be rehabilitated, developed, or constructed, for rental or for sale to persons and
families of low and moderate income, and equal number of replacement dwelling units that meet
certain criteria (Section 33413 (a)). In addition, 100 percent of replacement housing units shall
be at affordable housing cost to the same income level as the removed units (Section 33413 (a)).
2. Existing Replacement Housing Obligations
No housing unit has been destroyed or removed from either Project Area due to Agency action.
3. Anticipated Removal of Units During Five -Year Plan
The Agency does not anticipate any redevelopment activity that will involve the removal or
demolition of housing units in either project area. However, should removal or demolition of
housing occur as a result of redevelopment activities in the future, the Agency will ensure that
replacement housing is provided according to the requirements specified by the CRL.
C. Redevelopment Housing Set -Aside Requirements
1. Legislative Requirements /Definition of Terms
Sections 33334.2 and 33334.6 of the Health and Safety Code require redevelopment agencies to
set aside 20 percent of their tax increment into a low and moderate income housing fund. The
housing fund must be used to increase, improve, and preserve the supply of affordable housing
within the redevelopment project area. (Section 33334.3 (c)).
Section 33334.4 of the Health and Safety Code requires that the Agency expend, over the
duration of this implementation plan, moneys in the low and moderate income housing fund to
assist housing for persons of very low income and housing for persons of low income in at least
the same proportion as the total housing units needed for each of these income groups bears to
the total number of units needed for moderate, low, and very low income households in the City.
For the 2000 -2005 period, the City of Seal Beach has a Regional Housing Needs Allocation
(RHNA) of 265 units. The income distribution of these units is as follows:
❖ Very Low Income - 76 units
❖ Low Income - 35 units
Page 12 Seal Beach Redevelopment Implementation Plan
❖ Moderate Income - 47 units
•
❖ Above Moderate Income -107 units
Overall, very low (48.1%) and low- income units (22.2 %) represent 70.3 percent (111 units) of the
total units needed for very, low, and moderate income households (158 units). Pursuant to
Section 33334.4, not less than 48.1 percent of the housing set -aside funds would need to be
expended to assist very low income households and not less than 22.2 percent must be spent to
assist low income households for the duration of this Redevelopment Implementation Plan.
In addition, the agency must expend set -aside funds during the duration of this implementation
plan for housing available to families with children in at least the same proportion as the
population under age 65 bears to the total population of the City. According to the 2000
Census, persons over the age 65 constitute 37.5 percent of the Seal Beach population. Thus,
62.5 percent of the housing set -aside funds must be expended on housing that is available to
families with children.
2. Redevelopment Housing Set -Aside Fund Projections
As indicated before, the Riverfront Project Area has not been generating a significant amount of
tax increment funds. Between 1993 and 1997, the Agency has deferred payments into the 20
percent housing set -aside fund. Repayment of the deferred set -aside fund began in 1997.
Table 4
Housing Set -Aside Fund Projections
2000/2001 2001/2002 2002/2003 2003/2004 2004/2005
20% Tax Increment $183,396 $207,280 $211,085 $215,937 $220,911
Deferral Repayments $39,000 $0 $0 $0 $0
Interest Income $89,000 $61,000 $61,000 $61,000 $61,000
Total Set -Aside Fund $311,396 $268,280 $272,085 $276,937 $281,911
Seal Beach Redevelopment Implementation Plan Page 13
IV. Implementation Plan for Addressing
Agency Housing Requirements
A. Existing and Proposed Housing Programs
The housing programs for the five -year period of this plan are consistent with the Seal Beach
Housing Element (2000), which identifies the following housing goals:
•: Facilitate the development of a variety of housing types for all income levels to meet
the existing and future housing needs of residents;
• Assist in the development of adequate housing to meet the needs of low and
moderate income households;
• Address, and where appropriate and legally possible, remove governmental
constraints to the maintenance, improvement, and development of housing;
• Maintain and enhance the existing quality of residential neighborhoods in Seal Beach;
• Promote equal housing opportunities for all persons regardless of race, color, national
origin, ancestry, religion, sex, marital status, or familial status.
The programs that address these goals are described below.
1. Home Improvement Program
Using set -aside funds, the Agency operates a rehabilitation program for owner- occupied and
renter - occupied units. For owner - occupied units, grants of up to $10,000 are available to low
and moderate income households to complete exterior improvements, correct code compliance
issues, health and safety concerns, and install energy efficient systems including weatherization. In
addition, deferred payment loans of up to $50,000 are available to low and moderate income
households. The loan becomes due and payable upon the sale of the home, or is forgiven after
20 years.
In the past, the Agency has utilized set -aside funds to write off the interest on the Federal Housing
Authority Title I Program loans of up to $25,000. However, the Title I program has been
suspended, and the City has recently restructured the program to expand the level of participation
among homeowners.
For rental units, set -aside funds are used to provide low- interest loans and rebates for the
rehabilitation of deteriorated rental housing in the City. In exchange, the property owners must
maintain affordable rents on the units for five years.
Page 14 Seal Beach Redevelopment Implementation Plan
2. Tenant Ownership of Seal Beach Trailer Park
Tenant Ownership:
To ensure the Tong -term preservation of Seal Beach Trailer Park as an important affordable
housing resource, the City worked with LINC Housing, a nonprofit housing organization, to pursue
tenant ownership of the park. The City was awarded by the State Department of Housing and
Community Development (HCD) a $20,000 Technical Assistance grant to facilitate conversion of
the park to tenant ownership. Through the issuance of a revenue bond by the Agency, approval
of a MPROP Loan by the State of California and subsequent loan to LINC housing, conversion of
the park to tenant ownership was completed in December 2000. Among the 125 units, 25 units
have been deed - restricted as housing affordable to very low income households and 75 units
have been deed - restricted as housing affordable to low /moderate income households. In
addition, the City provides ongoing rental assistance to offset the monthly rent increase necessary
to repay the bond. The rental assistance is for a period of 12 years with a maximum funding
commitment of $ 965,000.00.
Rehabilitation- Replacement of Existing Units:
In addition to the Agency assistance in the acquisition and rental assistance of the Trailer Park, a
substantial rehabilitation /replacement loan program is proposed at a maximum loan amount of
$50,000 for individual existing units within the Trailer Park. Specific re -sale and equity sharing
provisions would apply if the property were sold to a non - qualified buyer.
3. Mortgage Assistance Loans
Using set -aside funds, the Agency would provide a mortgage assistance loan program for first -
time homebuyers. For owner - occupied units, loans of up to $35,000 or 20% of the purchase
price would be available to low and moderate income households to purchase an existing
residence, generally a condominium or mobile home in the Seal Beach Trailer Park. Specific re-
sale and equity sharing provisions would apply if the property were sold to a non - qualified buyer.
The loan becomes due and payable upon the sale of the home, or is forgiven after 10 years.
B. Housing Production and Assistance Goals
Table 5 provides an estimate in terms of number of households to be assisted and amount of
housing set -aside fund to be expended over the five -year period (2000 -2005) of this
implementation plan.
•
Seal Beach Redevelopment Implementation Plan Page 15
Table 5
Five -Year Housing Assistance Goals
2000 -2005
J
Households Set -Aside Funds
Program Assisted to be Expended
1. Home Improvement Program 20 $1,000,000
2. Tenant Ownership of Seal Beach Trailer Park
Acquisition of Park (Loan)' 120 ($1,000,000)
Rental Subsidy for 5 Years 25 $600,000
Replacement/Rehabilitation 10 $500,000
3. Mortgage Assistance Loans 20 $700,000
Total 50 $2,800,000
Notes:
1. The $1,000,000 loan to LINC for acquisition of the park is expected to be repaid back to the
Agency within the time frame of this Implementation Plan. These funds are proposed to be
expended upon receipt within the time frame of this Implementation Plan.
2. The total rent subsidy is for 12 years and will be allocated in future plans as appropriate. Total
subsidy is not to exceed $965,000.00.
3. $500,000 of funding for this program will not be available until the MPROP Loan is funded by
the State of California and the Agency bridge loan is reimbursed.
4. $100,000 of funding for this program will not be available until the MPROP Loan is funded by
the State of California and the Agency Bridge Loan is reimbursed.
5. $400,000 of funding for this program will not be available until the MPROP Loan is funded by
the State of California and the Agency Bridge Loan is reimbursed.
Page 16 Seal Beach Redevelopment Implementation Plan