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REDEVELOPMENT AGENCY AGENDA ITEM NO. 40

Meeting Date: November 13, 2007

Subject/Title: Adopt a Resolution approving and adopting the Midterm Review of the Five-Year Implementation Plan for FY 2004/05 to 2008/09 for the Merged Brentwood and North Brentwood Redevelopment Projects.

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Deputy Director

RECOMMENDATION
Adopt a Resolution approving and adopting the Midterm Review of the Five-Year Implementation Plan for FY 2004/05 to 2008/09 for the Merged Brentwood and North Brentwood Redevelopment Projects.

PREVIOUS ACTION
The Brentwood Redevelopment Agency adopted its first Five-Year Implementation Plan in 1994, and its second Five-Year Implementation Plan in 2000.

On March 8, 2005, the Redevelopment Agency adopted its third Five-Year Implementation Plan for FY 2004/05 to 2008/09.

BACKGROUND
AB 1290 (effective January 1994) requires every redevelopment agency in the state to adopt a Five-Year Implementation Plan. The plan must set forth the agency’s goals and objectives for its project areas for the five-year period; identify programs, potential projects and financing methods to achieve those goals and objectives; and address the agency’s efforts to provide affordable housing in the project areas. The housing component of the Implementation Plan focuses on the Agency’s Housing Fund (20% of annual tax increments) and how it is used during the five-year period, as well as identifies inclusionary, replacement housing and targeting obligations and compliance.

At least once within the five-year term of the Implementation Plan, the Agency is required to conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plans and the corresponding implementation plan for the redevelopment projects and evaluating the progress of the redevelopment projects. This public hearing and the attached Midterm Review of the Five Year Implementation Plan for FY 2004/05 to 2008/09 are required to comply with the AB1290 requirement. This public hearing and the opportunity to review and comment on the Midterm Review was noticed in the Brentwood Press for three consecutive weeks and was posted at public locations within the Project Areas.

While the attached Midterm Review of the Implementation Plan meets all the reporting obligations mandated by AB 1290, for summary purposes, this staff report will address only the highlights of the review.


Goals, Objectives, Programs and Projects
The goals and objectives of the Agency during the five-year period of the Implementation Plan represent a comprehensive economic development and infrastructure improvement approach to redevelopment based on a mix of public actions and private activities. The major focus for the Agency has been and will continue to be:

• To create a Downtown that is a community center for its residents and showcases the City’s strongest assets to visitors;
• To redevelop and revitalize the Brentwood Boulevard Corridor as the gateway to the City that provides multiple housing products and opportunities, employment centers, neighborhood retail shopping and improved infrastructure; and
• To financially support a public improvement program throughout the Merged Project Areas.
• Create affordable housing opportunities throughout the City.

To achieve this, the Agency continues to focus on the following goals and objectives during the five- year period:

1. Pursue alleviation of blighting conditions remaining in the Project Areas (such as Davis Camp and Hiway Rooms).

2. Improve urban structure by facilitating, financially participating and encouraging creation, expansion and retention of local commercial, industrial and retail opportunities, create local jobs, enhance sales tax generation, and increase property values (such as Sunset Industrial Complex, Sand Creek Business Center, Downtown streetscape enhancements, Façade Improvement Program and Coppergate townhomes).

3. Facilitate and assist the preparation and implementation of goals, objectives and recommendations of approved specific plans, economic strategic plans, environmental studies, development policies and design documents (such as Downtown and Brentwood Boulevard Corridor Specific Plans and their EIRs, and the Downtown Economic Strategic Plan).

4. Facilitate private investment and revitalization through improvement and installation of public infrastructure to reduce congestion, improve public safety, and accommodate long-term growth and development patterns (such as extension of O’Hara Avenue to Second Street, Walnut Boulevard and Brentwood Boulevard widening projects, Lone Oak Road water and sewer improvements, and Chestnut Street surface parking lot).

5. Facilitate the provision of community facilities that will encourage and strengthen economic, civic and social viability (such as police station and parking facilities).

6. Contribute to economic development and marketing activities that benefit, preserve and support economic revitalization (such as marketing program partnership with Chamber of Commerce and other Downtown special activities and functions).

7. Continue to increase, improve and preserve the supply of affordable housing (such as Villa Amador, Brentwood Senior Commons, Sycamore Place II, and the Health & Safety Grant Program).


The principal programs that address the achievement of the goals and objectives are identified in the Implementation Plan as follows:
• Public Improvement Program
• Community Facilities Program
• Commercial Development Assistance Program
• Economic Development and Marketing Program
• Affordable Housing Program (20% Housing Fund)

Projected Funds for the Non-Housing Programs
The primary source of revenue available to the Agency to fund its programs and projects has been and will continue to be property tax increment and bond proceeds. After subtracting the Agency’s debt, state-mandated housing set-aside funds and other obligations, the Agency expects that approximately $28.2 million will be available during the Five-Year Implementation Plan period for its programs and projects (refer to Table II-3 on Page II-9). Based on current capital improvement projects, and the Agency’s identification of project priorities and reservation of bond proceeds for specific projects, staff anticipates the following expenditure levels in the amount of $26.9 million (refer to Table II-4 on Page II-11):

Public Improvement Program $7,061,096
Community Facilities Program 16,630,256
Commercial Development Assistance 2,957,830
Economic Development & Marketing 262,998
TOTAL ESTIMATED NON-HOUSING EXPENDITURES $26,912,179


Affordable Housing Component
The Housing Component of the Implementation Plan summarizes the Agency’s affordable housing obligations pursuant to Community Redevelopment Law. It sets forth housing goals and objectives for the five-year period, presents estimates of revenues and planned expenditures, and explains how the stated goals, objectives, programs and projects will produce affordable housing units to meet State obligations. In addition, redevelopment agencies must forecast housing production within project areas during the next five-year period, and also for a ten-year period and for the life of the redevelopment plans.

Inclusionary Housing Obligation
Since the mid-1970s, redevelopment agencies are required to cause at least 15% of all housing constructed within a redevelopment project area to be affordable, with at least 40% of 15% to be affordable to very low income households. This is known as “inclusionary housing.” The Agency reports that 1,560 units have been constructed in the Merged Project Areas since the adoption of the Project Areas through FY 2006/07 (refer to Table IV-9, Page IV-13). This created the obligation of 234 affordable units (15%), of which 94 units (40%) must be affordable to very low income households. To date, 229 units have been produced of which 172 are affordable to very low income households. The Agency has a deficit of 5 affordable units, but has a surplus of 78 very low income units. Over the first three years of the Implementation Plan, the Agency has entered into agreements with for-profit and non-profit housing developers for the production of additional affordable units that are not yet occupied. Through these actions, the Agency anticipates 56 very low and 77 low and moderate income units will be completed by 2008, which will fulfill and exceed the Agency’s inclusionary housing obligation.

The Agency plans to meet its “historical” housing obligations as described above. Furthermore, as described in the Housing Component section of the Implementation Plan, the Agency expects to meet and exceed its inclusionary housing obligations over the remainder of the Five-Year Implementation Plan period and over the life of the plans.

Programs and Projects for the Agency’s Affordable Housing Program
To carry out the Agency’s Affordable Housing Program and to comply with California Redevelopment Law to create, improve and preserve affordable housing, the Agency has four principal housing programs identified in the Implementation Plan as follows:

• New Construction of Owner Occupied Units
• New Construction of Rental Housing
• Health & Safety Grant Program
• Substantial Rehabilitation

The Agency has actively participated in creating affordable housing opportunities through its New Construction Programs for both owner occupied units and rental housing. These projects include Brentwood Senior Commons, Sycamore Place II, Villa Amador Apartments, Coppergate Townhomes, Sycamore Square homes, Arbor Village homes, and others.

The Agency adopted and implemented a new Health and Safety Grant Program in November 2006. The Health and Safety Grant Program provides grants for simple emergency repairs needed by lower-income households but which repairs are unaffordable, especially to our senior citizens. Routine repairs such as replacement hot water heaters, grab bars, wheelchair ramps, seismic safety, weatherization and smoke detectors can be overlooked or postponed by homeowners when monthly incomes are used primarily for medical costs and basic needs. Annual funding of $35,000 has been budgeted for this program for each of the last two years of the Implementation Plan.

The Substantial Rehabilitation Program will be brought to the Agency in the final year of the five-year period for formal approval of the programs’ policies and appropriation of funds. A home rehab loan program is currently administered by the Contra Costa County Community Development Department for all homeowners in Brentwood. Staff believes that greater participation in this program if the County-maximum of $40,000 per household was raised. As many of us know from renovating our own homes, $40,000 is not representative of today’s market and costs for rehabilitation needs. Many of the older neighborhoods in Brentwood are located within the Merged Project Areas. Rehabilitation of these older homes routinely consists of new roof, window replacement, bathroom and kitchen update, handicap accessibility, interior and exterior paint, repaired driveways and walkways, and code-compliance plumbing and electrical. Staff shall recommend the Agency consider supplementing the County’s home rehabilitation loan program in an effort to fund more comprehensive rehabilitations and to preserve the existing housing stock in our community. The Agency already supplements the outreach and marketing efforts of the County’s program to better serve our older neighborhoods.

Projected Funds for the Agency’s Housing Program
The primary funding source for the Agency’s affordable housing activities is and will continue to be the 20% portion of annual tax increment revenue deposited in the Agency’s Housing Fund. The Housing Fund balance at the end of FY 2003/04 was $1.5 million. After adding in the estimated 20% tax increment revenues for the five-year period and subtracting administrative expenses to administer the housing programs and activities, the Agency will have approximately $7.2 million available for its Housing Program during the five-year Implementation Plan period (refer to Table IV-2 on Page IV-5).

To carry out the Agency’s Affordable Housing Programs, staff estimates expenditures for housing activities of approximately $5.1 million (refer to Table IV-8 on Page IV-10). These expenditures include the already-approved appropriation of funds for specific housing projects.

Targeting Requirements
Effective January 1, 2002, by AB 637, the Agency’s Housing Fund must be spent to assist households in at least the same proportion to Brentwood’s housing need by income and age level. Compliance with targeting requirements is measured based on dollars spent over the ten-year compliance period ending 2014.

As reported in the Implementation Plan, the Agency has met and exceeded its income targets, but has not satisfied its age targets by 2%. Since the current compliance period ends 2014, the Agency will continue to monitor its Housing Fund expenditures in order to comply with the requirement for minimum expenditures on age restricted housing.

Summary
The Implementation Plan can be viewed by the Agency as its five-year business plan. Through the adoption of the Midterm Review of the Five-Year Implementation Plan for 2005-2009, the Agency can measure its achievements and success in meeting many of its goals and objectives, as well as chart a course to continue its mission. The Agency will have sufficient financial resources and opportunities to implement the identified programs to further achieve its goals and objectives, and to meet its housing obligations. If necessary, the Implementation Plan can be amended at any time to include a new project, and the Agency’s annual budget can be modified to meet future budgetary needs and new program goals.

FISCAL IMPACT
There is no fiscal impact associated with the Midterm Review of the Five-Year Implementation Plan.

Attachments:
1. Resolution
2. Midterm Review of the Five-Year Implementation Plan for FY 2004/05 to 2008/09



AGENCY RESOLUTION NO.

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD APPROVING AND ADOPTING THE MIDTERM REVIEW OF THE FIVE-YEAR IMPLEMENTATION PLAN FOR THE MERGED BRENTWOOD AND NORTH BRENTWOOD REDEVELOPMENT PROJECTS

WHEREAS, Section 33490 of the California Community Redevelopment Law (Health and Safety Code Section 3300 et seq.), requires that each five years the Redevelopment Agency of the City of Brentwood (the “Agency”) must adopt a Five-Year Implementation Plan for its redevelopment projects, and that at least once within the five-year term of the implementation plan, the Agency shall conduct a public hearing and hear testimony of all interested parties for the purpose of reviewing the redevelopment plans and the corresponding implementation plan for the redevelopment projects and evaluating the progress of the redevelopment projects; and

WHEREAS, as required by Health and Safety Code Section 33490, on March 8, 2005, by Resolution RD-97, the Agency prepared and adopted an AB 1290 Five-Year Implementation Plan for 2004/05 to 2008/09 (the “Implementation Plan”) pertaining to the Merged Brentwood and North Brentwood Redevelopment Projects (the “Projects”) containing the specific goals and objectives of the Agency for the Projects, the specific programs and potential projects, estimated expenditures proposed to be made during the five-year term of the Implementation Plan for the Projects, and an explanation of how the goals and objectives, programs and expenditures will eliminate blight within the Project Areas and implement the requirements of Sections 33334.2 33334.4, 33334.6 and 33413; and

WHEREAS, the Agency has reviewed the Implementation Plan and, as required by Section 33490 of the Community Redevelopment Law, a public hearing was held by the Agency on November 13, 2007, for the purpose of reviewing the Redevelopment Plans and the corresponding Implementation Plan for the Projects and evaluating the progress of the Projects and Implementation Plan, and the testimony of all persons interested in the matter was heard, and

WHEREAS, notice of the public hearing was published in the Brentwood Press, a newspaper of general circulation in the City of Brentwood, for three consecutive weeks; and was posted in at least four (4) permanent places within the Project Areas, as required by Section 33490 of the Community Redevelopment Law, and

WHEREAS, the proposed review of the Implementation Plan, together with all information pertaining thereto, was made available for public inspection prior to the public hearing, and

WHEREAS, the Agency has reviewed and considered the proposed review of the Implementation Plan;

NOW, THEREFORE BE IT RESOLVED, that the Brentwood Redevelopment Agency hereby approves and adopts the Midterm Review of the Five-Year Implementation Plan for the Merged Brentwood and North Brentwood Redevelopment Projects, in substantially the form currently on file with the Agency Secretary and presented to the Agency at the public hearing November 13, 2007, subject to any further minor, technical or clarifying changes that may be approved by Agency Counsel.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 13h day of November 2007 by the following vote:


 

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