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REDEVELOPMENT AGENCY AGENDA ITEM NO. 28

Meeting Date: December 11, 2007

Subject/Title: Acceptance of Redevelopment Agency’s Blight Progress Report, Property
Report and Housing Activities Report for Fiscal Year Ending 2007

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Accept the Blight Progress Report, Property Report and Housing Activities Report for fiscal year ending 2007 as required by the Health & Safety Code.

PREVIOUS ACTION
These annual reports are brought to and accepted by the Agency at the end of each calendar year, the last being December 12, 2006.

BACKGROUND
The Community Redevelopment Law, as contained in the Health & Safety Code Section 33080.1, requires that in addition to the routine annual audit report, four additional annual reports be submitted to and accepted by the Redevelopment Agency within six months after the end of each fiscal year. The four reports include the following:

1. Blight Progress Report specifying the Agency’s progress in alleviating blight during the previous fiscal year.
2. Property Report describing properties owned by the Agency and those acquired in the previous fiscal year.
3. Loan Report identifying any loans made by the Agency that are $50,000 or more and which are in default or not in compliance with the terms of the loan.
4. Housing Activities Report identifying the Agency’s housing activities during the past fiscal year.

Attached for the Agency’s review and acceptance are the Blight Progress Report, the Property Report (identified as “Land Holdings”), and the Housing Activities Report. During the fiscal year ending 2007, no Agency loans exceeding $50,000 were in default, consequently the preparation of a Loan Report is unnecessary.

FISCAL IMPACT
None.


Attachments:
1) Blight Progress Report
2) Land Holdings Report
3) Housing Activities Report
BRENTWOOD REDEVELOPMENT AGENCY
Brentwood and North Brentwood Redevelopment Project Areas

PROJECTS AND PROGRAMS LINK TO BLIGHT ALLEVIATION
Fiscal Year Ending June 30, 2007




PROJECTS AND PROGRAMS
BLIGHT REMOVAL NEXUS

Affordable Housing Obligation
Unfit/Unsafe
Buildings Incompatible Uses Depreciated
Values &
Impaired Investments Underutilized Properties Inadequate Public Improvements
Sunset Industrial Complex. This 28-acre, 17-parcel industrial complex, developed by the City and Agency, includes a reimbursement agreement between the Agency and the City for the Agency to fund public improvements for the Sunset Industrial Complex in the amount of $3.7M. As parcels are sold, the Agency is reimbursed 86% of the proceeds for its proportionate share of the development costs. This project will generate a minimum of 550 jobs within 25 (+/-) industrial businesses. This on-going project will voluntarily relocate four industrial users from Brentwood Blvd. to the Sunset Industrial Complex for future redevelopment of the Brentwood Blvd. corridor. During FYE 2006/7, the Agency managed the sale and closing of 2 parcels, entered into 2 sales agreements, assigned 1 parcel and 2 building permits were issued. √ √ √ √
Second Street & Central Remnant Parcel. The City transferred ownership of a remnant parcel located on Second Street & Central Blvd. in May 2006 to the Agency. During 2006/07 the Agency negotiated a Disposition and Development Agreement with Equus Group to develop 16 multi-family units located at Town Centre Commons adjacent to parcel, 2 of which will be affordable. Equus has suspended DDA approval pending favorable project proforma. √ √ √
Downtown Specific Plan. Agency resources are used to carry out the Downtown Action Plan that identifies and priorities City actions to support and implement the Downtown Specific Plan. Throughout the year, the Agency funded revitalization and improvements to the Downtown, including new street lights, tree lights, trash receptacles, benches, pottery and additional seasonal flowers. The Agency also sponsored an internationally recognized speaker on retailing and building customer relations for Downtown business owners. Also, the Agency participated in matching property owners with interested tenants, as well as implemented a new parking permit and education program for the Downtown. Overall, the Agency continues to play a significant role in transforming the Downtown to achieve the Specific Plan goals. √ √ √ √ √
Industrial Lease. To preserve the viability of an existing industrial lease of a 20,277 square foot building to Precision Cabinets, the Agency amended the terms and conditions of the lease on June 12, 2007, by Resolution No. 126. The amendment provided temporary favorable lease terms to Precision Cabinets which was experiencing a reduction of workforce directly caused by the downturn in the housing market. Precision Cabinets continues to be a large employer in Brentwood. √ √
Brentwood Boulevard Specific Plan.
The Brentwood Boulevard Corridor Specific Plan is currently being prepared by city and redevelopment staff. As part of this preparation, permitted and conditional uses are being defined by use category, and procedures to address legally established uses that may be non-conforming after adoption of the plan are being developed. Detailed land use maps and site development standards were discussed with primary property owners during November and December 2006, followed by public workshops in early 2007. The Agency funded the land use economic study which provided useful date in guiding land use models. In May 2007, the Agency approved funding in the amount of $240,000 for the EIR to analyze the impacts of the Specific Plan. √ √ √ √ √
Health & Safety Grant Program – November 14, 2006 the Agency approved the Health & Safety Grant Program designed to provide very low and low income owner-occupant residents within the City of Brentwood with grant funds to address home repairs to correct dangerous health and safety conditions, code violations and disabled inaccessibility which, without the repair or replacement, would result in imminent unsafe or hazardous conditions for the occupant(s). This program receives an annual budget of $35,000. √ √ √
100 Chestnut St – Parking Lot – CIP Project - On July 25, 2006, the City and Agency approved the amendment of the 2010/11 CIP Program to include the budget for the construction of the surface parking lot located at 100 Chestnut St. The Agency fully funded the costs in the amount of $315,000 for the demolition of the existing bldg. and construction of a parking lot which has provided 45 new parking stalls for the Downtown. This allows a short-term parking solution based on the “Downtown Brentwood Parking Study” submitted as part of the Downtown Specific Plan and approved by Council on November 14, 2005. √ √ √ √ √
Façade Improvement Program – Approved by the Agency on June 26, 2007 by Resolution No. 127 the Program is designed to eliminate blight and stimulate private investment in high-quality building improvements that contribute to the overall strength of Downtown. Through this program, the Agency will share the costs of improving building exteriors, thereby promoting joint public/private action and investment, which will complement and enhance Downtown revitalization efforts. All façade improvements must be consistent with the City of Brentwood Downtown Specific Plan (adopted November 16, 2005). This program receives an annual budget of $25,000. √
Lone Oak Road – South Utilities. On September 12, 2006 the Agency adopted a resolution authorizing the appropriation of funds from the Redevelopment Agency, to fund the Reimbursement Agreement with Brentwood Sand Creek Partners, LLC, Subdivision No. 8788, for the southern phase of Lone Oak Road Utility Improvements in the amount of $1,643,000. This allows utility improvements on the first of two phases to upgrade the utilities for homes along Lone Oak Road, Lone Oak Court, Gracie Lane and Saddle Creek Court which are using well and septic systems. This area has high water tables and winter weather causes problems for already overtaxed well and septic systems. √
Brentwood Boulevard (Central) Widening – On June 12, 2007, by Resolution No. 125, the Agency approved the appropriation of $300,000 to fund the roadway widening project of Brentwood Boulevard (Central), to include curb, gutter, sidewalk, median island, pavement widening to four lanes and street lighting. This project will complete roadway improvements already installed to the north and south of this segment, resulting in a continuity of improvements. √ √



















BRENTWOOD REDEVELOPMENT AGENCY
LAND HOLDINGS
October 2007

Address & APN Acquisition Date Purchase Price Acquisition Costs Total Current Land Use, Zoning and
Parcel Size Comments
10’ Wide Parcel
Southeast Corner of Oak St. & Walnut Blvd.
No APN August 15, 2002 $12,050 -0- $12,050 Vacant Parcel;
Western Gateway
Residential
4987 sf. (assemblage site, not full r.r. row)
Purchased with funds from Brentwood Project Area. Held for possible assemblage and conveyance for future residential development
Southeast Corner of
Oak St. & Walnut Blvd.
013-232-006
March 31, 1988 $226,300 Unknown $226,300 Vacant Parcel;
Western Gateway Retail/Residential
(PD 37);
1.68 Acres Corrected ownership from City to Agency by Council Res. No. 2345 dated 8/28/01; new Grant Deed recorded 9/18/01; purchased with funds from Brentwood Project Area. Held for possible assemblage and conveyance for future retail/residential development.
604 First Street
013-110-010 April 21, 2000 $125,000 $1,263 $126,263 Parking Lot;
Downtown Core;
.17 acres (7405 sf);
20 parking spaces CIP #336-3118; RA-30 $159,000 for construction of parking lot to serve DTN area; purchased and constructed using funds from Brentwood Project Area.
8436 Brentwood Blvd.
013-100-009 January 19, 2001 $150,000 $1,455 $151,455 Parking Lot
Downtown Boulevard;
.17 acres (7405 sf);
17 parking spaces CIP #336-3125; Res. RA-34 $172,000 for construction of parking lot to serve DTN area; purchased and constructed using funds from Brentwood Project Area.


1909 Jane Way (formerly 140 Jane Way/Sunset Road)
APN: 016-010-013-7 August 5, 2004 $360,000 $2,175 $362,175 Residential parcel but now vacant.
Zoned PD-23
.8940 acres Purchased with funds from 20% Housing set-aside. Approved 7-13-04 by Council/Agency. RDA-84.
1000 Central Blvd.
APN: 017-160-004 March 22, 2005 $0 $0 $0 Vacant;
Western Gateway
Residential/Office;
3.7 acres City conveyed property to Agency for future development of property by Resolutions No. 2005-53 and RD – 96.
400 Guthrie Lane
APN: 010-160-033


January 31, 2006



$0 $0 $0 Get Current Zoning.
9.5 acres City conveyed property at 400 Guthrie Lane to Agency for lease of CD Bldg. by Resolution RD-110. Agency currently leases parcel to Precision Cabinets.
NEC of Second Street & Central Blvd. Remnant parcel May 8, 2006 $0 $0 $0 Conveyed by Grant Deed from City to RDA. Resolution No. 2006-66 & RDA 109.
3740 Walnut Blvd.
APN 012-170-006

Approved to purchase by Resolution RD-119
12/12/06
In escrow, pending remediation of potential contaminants. $1,220,900
(pending) Vacant,
Western Gateway
Residential;
2.156 acres In escrow since December 2006. Not closed.
200 Sunset Court
APN 016-010-015

Approved to purchase by Resolution RD-124
6-12-07
In escrow, pending relocation on of tenants $512,000
(pending) Residential zoned parcel.
Zoned PD-23
1.12 acres In escrow since June 2007. Not closed.



BRENTWOOD REDEVELOPMENT AGENCY
Brentwood and North Brentwood Redevelopment Project Areas
Fiscal Year 2006-2007
AGENCY HOUSING ACTIVIES REPORT


• There were no Agency activities or redevelopment projects, inside or outside the Merged Redevelopment Project Areas that displaced or relocated elderly, family or lower-income households during fiscal year 2006-07.

• The Agency anticipates the displacement and relocation of up to fifteen lower-income households inside the Merged Redevelopment Project Areas during 2007-08.

• There were no dwelling units inside the Merged Redevelopment Project Areas that were destroyed or removed from the low - or moderate-income market during 2006-07 as a part of a redevelopment project of the Agency.

• The Agency continues to work with residential developers of subdivisions within the Merged Redevelopment Project Area to produce the mandated affordable housing as required by Community Redevelopment Law (15%).
o During 2006-07, the units with ongoing restrictions in favor of the Agency include:
• 9 Low income units at Town Centre Apartments; deed restricted until 2011.
• 2 Very Low income units at 540 and 544 First Street (Habitat for Humanity); deed restricted until 2029.
• 40 Very Low income senior units at Sycamore Place I (Christian Church Homes); deed restricted until 2037.
• 3 Very Low income units at 504 First Street (triplex; DeNova Homes); deed restricted until 2058.
• 1 Very Low income unit and 1 L income unit at 449 and 443 First Street (Arteaga 8-plex); deed restricted until 2060.
• 4 Very Low income units, 3 L income units and 3 M income units at Arbor Village (KB Homes); deed restricted until 2050.
• 5 Moderate income units at Sycamore Square (Richmond American); deed restricted for 45 years until 2060.
• 40 Very Low income senior units at Sycamore Place II (Christian Church Homes); deed restricted until 2060.
• 6 Low income units at Pulte Rose Garden; deed restricted until 2050 (outside Merged Redevelopment Project Area).
• 18 Moderate income units at Copper Gate townhomes (Western Pacific) on Sand Creek Road; deed restricted for 45 years until 2050.
• 3 Moderate income units at California Grove; deed restricted for 45 years until 2050.
• 36 Very Low income units at Arbor Ridge Apartments on Shady Willow Road; deed restricted for 55 years until 2060 (outside Merged Redevelopment Project Area).
• 1 Very Low income unit and 1 Low income unit at Sterling Pinnacle (Meritage), deed restricted for 45 years until 2059.
• 3 Low income units at Brighton Station (Discovery Builders), deed restricted for 45 years until 2059.
• 1 Very Low income unit and 3 Low income units at Magnolia Ranch/Granville Estates (Western Pacific) deed restricted for 45 years until 2059.
• 80 restricted units at Brentwood Sr. Commons on Oak Street (Eden Housing); deed restricted for 55 years until 2062.
• 24 Very Low and 3 Low income restricted units at Green Valley Apartments; deed restricted until 2047.
o The annual monitoring reports submitted to the Agency for the above units were in compliance with their respective regulatory agreements.

o Upcoming restricted units in favor of the Agency include:
• 4 Very Low income units, 3 L income units and 2 M income units at Town Centre Apartments; starting 2011 deed restricted for 55 years; agreement is signed and recorded.
• 96 Very Low income units at Villa Amador on Sand Creek Road and Shady Willow Road; deed restricted for 55 years; agreement is signed and recorded; anticipated construction completed in early 2008.
• 5 Very Low income units, 3 Low income units and 4 Moderate income units at Palmilla on SWC of Central & Walnut (Pinn Brothers); deed restricted for 45 years, agreement is signed and recorded.
• 3 Very Low income units, 6 Low income units and 3 Moderate income units at Barrington (DeNova Homes); deed restricted for 45 years, agreement is signed and recorded.
• 1 Very Low income unit, 1 Low Income unit and 1 Moderate income unit at Blumen Ranch (Richmond America), deed restricted for 45 years, agreement is signed and recorded.
• 1 Very Low income unit at Costello (DR Horton) deed restricted for 45 years, agreement is signed and recorded.
• 2 L income units at NEC of 2nd Street and Central Boulevard (to be part of the Town Centre Apartments); deed restricted for 55 years; agreement is being prepared.

• Deposits into the Agency’s Merged Housing Fund during 2006-07 were primarily 20% of the tax increment receipts, in the amount of $1,477,295. The Agency did not accumulate “excess surplus” as defined by Section 33334.10 of the Health & Safety Code (an unencumbered amount in the Housing Fund that exceeds the greater of $1M or the total of the last four years’ deposits in the Housing Fund).



 
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