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HomeMy WebLinkAbout10/24/2001 - STAFF REPORTS TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF REDEVELOPMENT DATE: OCTOBER 24, 2001 PUBLIC HEARING ON ADOPTION OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY'S FIVE YEAR IMPLEMENTATION PLAN AND HOUSING COMPLIANCE PLAN FOR PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, 2001-2002 THROUGH 2O05- 2006 RECOMMENDATION: That the Agency approve the Five Year Implementation Plan and Housing Compliance Plan for Palm Springs Community Redevelopment Agency. SUMMARY: The Community Redevelopment Agency of the City of Palm Springs ("Agency") has prepared a Five Year Implementation Plan/Housing Compliance Plan as required by California Health & Safety Code Section 33490(a)(1)(3). The Community Redevelopment Agency is required to conduct a Public Hearing to receive public input on the matter. A draft Plan was enclosed for the October 17 package for review and comment; this package contains the Agency's revised Programs and Projects list and corrected financial projections. A revised draft containing the Agency's recommended corrections as well as the Projects & Programs and corrected numbers, in addition to a draft of the Housing Compliance Plan, will be provided at the meeting on October 24. In the meantime, all of those proposed changes are included in this packet for the Agency to review. BACKGROUND: The Community Redevelopment Agency of the City of Palm Springs ("Agency") has prepared a Five Year Implementation Plan/Housing Compliance Plan, which it is required to do every five years as required by California Health & Safety Code Section 33490(a)(1)(3). The Community Redevelopment Agency is required to conduct a Public Hearing to receive public input on the matter. This public hearing is on the required Five-Year Implementation Plan (the "Implementation Plan") for all Redevelopment Project Areas of the Community Redevelopment Agency of the City of Palm Springs (the "Agency"), which was created by the City of Palm Springs (the "City") City Council on August 14, 1972 by Ordinance No. 929, to undertake redevelopment activities that remove physically and economically blighted conditions that inhibit and continue to plague economic growth in the city. All redevelopment agencies in California were required by the Community Development Reform Act of 1993 ("AB 1290") to adopt an "implementation plan" prior to December 31, 1994, and to readopt an implementation plan every five years thereafter. The initial Implementation Plan was adopted by a resolution of the Community Redevelopment Agency on March 15, 1995, and addressed all ten redevelopment projects of the aw.. A Agency. This plan was due to be adopted by December 31, 1999 and is considered late by the State Controller's Office. The Implementation Plan sets forth and describes the capital projects of the Agency, as well as the Agency's goals and objectives in eliminating blight in the project areas. The most significant change in the Agency since the adoption of the first Implementation Plan in 1995 is the merger of the Agency's ten project areas into two: Merged Area #1 and Merged Area #2. The Housing Compliance Report will be provided in the revised draft; it has taken longer than the rest of the report to produce in part because of the difficulty extracting the data necessary (all housing units, single-family and multi-family, constructed or rehabilitated in the City between 1985 and 2001, broken down by Project Area) from the City's existing building permit system. That data has now been collected and will be incorporated into the final draft. Several Housing Compliance Plan Tables have been included in this packet; the City-collected data will appear in the narrative of the report. Per the requirements of the Act, notice was published in The Desert Sun on October 3 and October 10, and Notices of Public Hearing were posted in all ten of the project areas. A draft copy of the Report was enclosed in the October 17 packet, and was placed on file for viewing in the Redevelopment Agency office in City Hall on October 5, 2001. This package contains the Agency's additions and corrections to the Draft Report. The public hearing on the item was opened on October 17 and was continued until October 24, f OHN S RAYMONV irector of Redevel R ent APPRO D: Executive Director ATTACHMENTS: 1. Resolution 2. Implementation Plan for the Palm Springs Community Redevelopment Agency 3. Public Hearing Notice Palm Springs Community Redevelopment Agency Five Year Implementation Plan Programs and Projects 2001-2005 Merged Project Area #1 Palm Canyon Drive Public Improvements. Since the early 1990's the Agency has funded a number of street improvements on Palm Canyon Drive in the Central Business District, in the Uptown area, and in the area south of downtown. These have included designing and implementing a program of street lighting, installing the pedestal bases for new light standards purchased by participating property owners; implementing a program of palm tree wells in the downtown to improve the pedestrian circulation and safety; and, other hardscape improvements in the right-of-way. Future projects include the expansion of the street lighting program, either through the purchase of lights or the installation of bases, parking-related improvements, and streetscape improvements related to the redevelopment of the Desert Fashion Plaza. Desert Fashion Plaza. Foreclosed in 1997 by its lender,the mall has steadily lost tenants while a series of owners/developers have developed plans to redesign, remodel, and reposition the center. It is currently 75% vacant, having lost both major tenants and boarding up the entire interior. The mall is currently in escrow with a developer that proposes to reduce the amount of retail space and add residential and other mixed-use opportunities. All of the developers proceeding with a redevelopment of the project have encountered financing gaps in their pro formas, and have requested Agency financial assistance in order to allow the project to go forward. While there has not been a formal request for Agency financial assistance from the current developer nor has any pro forma has been made available to the Agency for review, a request for assistance is almost certainly forthcoming. The property is the single largest in the downtown and has a major impact on the retail environment,the streetscape, and the availability of parking in the downtown. Downtown Parking Structure and Surface Lots. The City of Palm Springs, in the early 1990's, created a business incentive in the downtown area by reducing its "in lieu" parking fee for businesses locating there. While the results have been spectacular in terms of a renewal of vitality in the downtown area, it has led to a dearth of easily accessible parking spaces in the downtown. The Agency has acquired through purchase or trade, redesigned, and renovated a number of peripheral parking lots, including the Catholic Church parking lot, the Blue Coyote Lot, the Vineyard parking lot, the Las Casuelas lot, and recently, the Henry Frank Arcade lot. The Agency will assist the City of Palm Springs in the development and construction of a parking structure in the downtown area: most likely in the 200 block of South Indian Canyon Drive. Burnett Development: Palm Springs East and Palm Springs West. The developer is proposing the largest new home tract in the City of Palm Springs in more than a decade. A significant portion of the developer's Palm Springs West site is land acquired from the City of Palm Springs (through the Agency, which has purchased the site for the purposes of effectuating the agreement) and the Agency, which had purchased a 39-acre mobile home park with Low/Mod Housing funds in 1995. The Agency proposes to sell the 19-acre vacant portion of the mobile home park to Burnett Development, along with the 22.21 acre City parcel, for the purposes of constructing market-rate housing in the area. The sale is for fair market value, with the proceeds of the 19-acre portion deposited in the Low/Mod Housing Fund to be used for affordable housing purposes, and the proceeds for the 22,21 acre parcel being returned to the City of Palm Springs. The developer has asked for assistance on the Palm Springs East site in land acquisition. While the entire development is "for sale" housing, it is intended to be sold at a price point currently lacking in Palm Springs in that category of new housing: under $300,000 for a detached, single- family home. ��- Aw3 Commercial Rehab/Facade Improvement Program. The Agency has had a number of small commercial rehabilitation programs over the past ten years, all of which have had a good track record. The Agency is considering re-instituting a minor commercial rehab/fagade improvement program (under $5-10,000) in both project areas, aimed at small retailers desiring to address signage issues, historic aspects of their buildings, vandalism, or other blighting factors in the property. Palm Springs Art Colony. As part of the Agency's ongoing efforts to reposition and re-tenant vacant or underutilized shopping centers (such as the Desert Fashion Plaza, Plaza Del Sol/Stein Mart, and the Sunrise/Ramon Ralphs Center), the Agency is working with the owners of Palm Springs Square to redevelop the center into new uses with new tenants. The proposed name is Palm Springs Art Colony, and it has a measure of mixed use development, bringing a residential component onto the existing site. The developer has not currently asked for Agency financial assistance. Desert Shadows OPA. The owners and managers of Desert Shadows Inn, in the former North Palm Canyon project area, are currently making their third request for Agency assistance: public improvements for a 17-hotel-condominium development. If granted,the total assistance provided the property will represent approximately 2.5% of the private investment over the same period. East Palm Canyon Drive and Cherokee Road Business Expansion. The Agency entered an Agreement with VIP Motor Cars and FDH Enterprises, the owner of the property, to provide Agency assistance in a major expansion and remodel of the dealership. The sales performance of the dealership, as well as the aesthetic quality of the property, have improved considerably since the Agreement. The dealership has expanded again, this time acquiring a collision repair shop to the south of their property. They wish to add additional product, and have asked Agency assistance in acquiring a vacant property directly across the street. That property, while vacant, shares a parcel with a significant retail business that wishes to stay in its current location. The Agency will work over the next several years to facilitate the growth and expansion of both businesses. Star Canyon Resort DDA. The Agency approved a Disposition and Development Agreement with the developers of the Star Canyon Resort, to provide a land write down for the 210-hotel-room and 264-timeshare project located on South Palm Canyon Drive. The project,when constructed, will be the first resort built in Palm Springs in over 12 years. Palm Canyon/Stevens Road Development. The Agency acquired a .75 acre parcel on North Palm Canyon Drive in the 1980's, as part of an abatement action of the City on a derelict hotel property. In 1997, the City acquired the fee title to the adjacent one-acre O'Donnell Golf Course Reservoir. The two properties, totaling 1.75 acres, have been marketed by the Agency since 1998. The Agency will enter a DDA with a developer that has proposed a mixed use project with "live/work"spaces located on Palm Canyon Drive. Plaza Mercado DDA Amendment/Sonny Bono Fountain. Agency approved a DDA amendment with the Developer that settles a liquidated damages claim made against the developer by the Agency under the amended DDA, and a counterclaim made by the Developer against the Agency for withholding a portion of the payment due him for the construction of the project's parking lot. The Developer will construct a Sonny Bono Memorial/Fountain using the liquidated damages funds to settle the dispute. Dumpsite Development. The Agency intends to enter a DDA with a private developer in 2002 that would allow the developer to remediate the site to whatever standard is appropriate and market to Agency's 14 acres, as well as the adjacent 23 acres, for retail development. The Agency may, but would not be required to, consider environmental enforcement action or eminent domain proceedings against the private parcel in order to effectuate the development of the overall site. c (afte. A. q Hotspot/Hotel Development. The Agency is developing a program to eradicate blighted "hotspot" hotels that become magnets for illicit and undesirable activity. These properties include, but are not limited to, the Biltmore Hotel, the Spanish Inn, and the Indian Manor. Assistance could include funding or reimbursement for off-site improvements, Agency financial assistance to the developer(s), or the use of eminent domain proceedings against the current owners. Frances Stevens Park/Festival Center Improvements. Frances Stevens Park is a former elementary school, now operated as a City park and cultural center. The Agency has funded a number of improvements to the park to begin to reshape its southern campus into a festival center. The impact of the festival center activities and development have affected all of the surrounding properties, including a vacant parcel across Indian Canyon Drive (with an approved luxury condo project on it), The Corridor project across Palm Canyon Drive, and all of the buildings to the north of the park which are being rehabilitated. Mid-Valley Center Development. One developer has assembled more than 150 acres on the eastern edge of Palm Springs in the former Ramon-Bogie project area and has received entitlements on a golf course, luxury resort, and business park development. While the Developer has not formally asked the Agency for financial assistance in the project, there are significant infrastructure issues in the project area that need to be addressed, including utility lines and street improvements. Decorative Lighting Programs. The increase in sidewalk lighting in the downtown area, part of a program implemented by the Agency in the early 1990's, was one of the major contributing factors in the revival of the central business district in Palm Springs in the 1990's. Other commercial areas near or adjacent to the downtown have requested similar types of programs, which involve business-owner participation in the purchase of the lights (or the installation of the pedestal bases) as well as an Agency contribution. These programs include the Uptown Lighting Program, the East Tahquitz Canyon Way Lighting Program, and the South/East Palm Canyon Drive Lighting Program. Merged Project Area #2 Prairie Schooner Property Development. The Agency acquired a 5.7 acre parcel in the former Tahquitz Andreas project area in 1989. The parcel is located adjacent to the Wyndham Hotel and the Palm Springs Convention Center, and across the street from the Palm Springs Hilton Resort and the proposed expanded Spa Casino. Over the next five years,the Agency expects to sell the parcel to a hotel developer as part of an expansion of the hospitality/group meeting business in the city. Lundin/Ralphs Agreement. Lundin Development is proposing to raze an old Ralphs Grocery Store and shopping center, assemble the site with two other larger parcels and construct a new center. The developer has made a request for Agency assistance in the area of public improvements, though the negotiations on the amount and type of assistance needed in the project have not commenced. Historic Site Survey. The Agency may, as funds allow, commission a historic site survey of properties within the project area. Such survey would assist the Agency to determine which buildings need to be preserved in future redevelopment projects within the project area. Casino DDA Amendment. The Agency will, as necessary, amend the DDA with the Agua Caliente Band of Cahuilla Indians to help facilitate the redevelopment of the Spa Resort Casino, including a new Spa Hotel and gaming facility. Canyon Vista Resort DDA. The Agency is evaluating a request for financial assistance from a developer working on the redevelopment of the former(now razed) Canyon Hotel into a 450-room C raL 4 ant hotel and 250-unit timeshare project. Because of hydrology and infrastructure needs, the request for public assistance dollars for infrastructure has been significant. Canyon Area Flood Control Improvements. In addition to the Canyon Vista project, nearly all the major developable tracts in the former Canyon project area will have flood control issues related to their development. Over the next several years, the Agency will work with the City of Palm Springs, the Riverside County Flood Control District, and the landowners in the area to try to develop a financing plan (including the possibility of outside grant funds) to spread the burden of these area-wide improvements over a larger base than just a handful of owners. Section 14 Public Improvements. As part of the Master Plan for the Section 14 area of Palm Springs, the Agua Caliente Band of Cahuilla Indians anticipate that Agency funds would be available to pay for a major portion of the infrastructure and public improvements needs in the area, including streets, landscaping and hardscape, lighting, and drainage improvements. Low/Mod Housing Program Coyote Run Expansion. The Agency participated in the development of a 140-unit low-and very- low-income housing project, Coyote Run, developed by the Coachella Valley Housing Coalition in 1992. CVHC has a desire to expand the project onto an adjacent 6.25 acre, Agency-owned parcel. The estimated 60 units would all be restricted to low-income families, though the project is not in a redevelopment project area. Province Group DDA/Inclusionary Family Housing. This is a proposed multi-family development located in the former Project Area No. 9. The developers propose 108 2-, 3- and 4-bedroom apartments on the site, all of which would be at rents under 60% of AMI. The proposed financing structure was tax-exempt bonds and the 4% tax credit program; they are seeking a land write- down from the Agency of approximately $875,000. The Agency would restrict 49% of the units, though the bond- and tax-credit covenants would restrict all. This is in a project area. Cottonwood/Chuckwalla Neighborhood Programs 555 & 585 Cottonwood. The Cottonwood/Chuckwalla neighborhood is one of the City's "Targeted Neighborhoods" and is part of the former Project Area No. 9. This owner has acquired a cluster of four fourplexes and is seeking Agency assistance to substantially rehab the units. Fifteen of the 16 units would be restricted to low-income families, and the project is in a redevelopment project area. CVHC OPA Amendment. The Agency entered an Owner Participation Agreement with Coachella Valley Housing Coalition for the development of 9 single-family homes in the Cottonwood/Chuckwalla neighborhood. The project has now been fully entitled and the Agency will amend the OPA to place the regulatory restrictions (for affordability) on the individual homeowners. Mobile Home Park Redevelopment/Affordability Sunrise Village Mobile Home Park Sale. The Agency owns the underlying fee interest in the land under the Sunrise Village Mobile Home Park. A non-profit organization has proposed to purchase the park and release their interest a vacant 19-acre portion of the park, which the Agency has proposed to sell to Burnett Development for fair market value. In return for a land write-down on the park sale, the group will restrict the rents on a portion of the units. Golden Sands Mobile Home Park and Sahara Mobile Home Park. Another non-profit organization has proposed purchasing these two parks; Sahara is an older, well-maintained park and Golden Sands is in considerable disrepair. The non-profit has asked for Agency financial assistance in both projects: both projects would have restricted rents. c ra . a Eldorado Mobile Home Park. The City has been embroiled in a decade-long dispute between the park owner and the Homeowners Association over the issue of rent control. Within the past two years, the owner has proposed subdividing the park into condominium-style ownership, which led to further litigation. Agency assistance to low-income owners has been considered as one of the mechanisms to settle the disputes. Garden Springs Apartments. The Agency entered a DDA in June 2001 with the developers of the Garden Springs Apartments to help facilitate the development of the project and a successful application of Low Income Housing Tax Credits. Gloriette Apartments. The Agency has received a request for financing assistance for a market- rate apartment complex that is proposing to set aside 20% of its units (42 units) for low-income renters. Desert Highland Single Family Infill Programs. The Desert Highland neighborhood is the lowest- income neighborhood in the City though it is largely a single-family neighborhood. There are a substantial number of vacant parcels in the neighborhood, partly through parcels that were never developed and partly through demolition. A program of infill development will be considered as a part of the revitalization of that neighborhood. Single Family Rehab Program. The Agency undertook a program of single family rehab, and performed substantial rehab of 25-25 homes and rehabilitation and improvements of another 50 homes. Given the other demands on resources, it is unlikely the Agency will continue to operate this program once the current appropriation is expended. c m QwP7 Redevelopment Plan Limits Table 1 Merged Redevelopment Projects#1 &#2 Project Area Adoption Date Plan Duration Plan Termination Tax Increment (See Note) Date Terminates Merged Area No. 1 Central Business District 07/11/73 40 Years 07/11/13 07/11/23 Ramon-Bogie 11/30/83 40 Years 11/30/23 11/30/33 South Palm Canyon 11/30/83 40 Years 11/30/23 11/30/33 Oasis 07/10/84 40 Years 07/10/24 07/10/34 North Palm Canyon 09/19/84 40 Years 09/19/24 09/19/34 Highland-Gateway 11/20/84 40 Years 11/20/24 11/20/34 Citywide Project No. 9 12/29/88 40 Years 12/29/28 12/29/38 Merged Area No. 2 Tahqutz-Andreas 07/19/83 40 Years 07/19/23 07/19/33 Barristo-Farrell 05/07/86 40 Years 05/07/26 05/07/36 Canyon 07/19/91 40 Years 07/19/31 07/19/41 Note. As amended by Ordinance No. 1576, December 15, 1999 c ra - eL- 8 Project Area Existing and Projected Affordable Housing Needs Table la Merged Redevelopment Project#1 Project Units Produced Very Low Total All Other Grand Affordable Total Pre-1994 Production Highland-Gateway Area 2 7 18 25 North Palm Canyon - - 79 79 SUBTOTAL 2 7 97 104 Pre-1994 Production Needs 6 16 40% 15% 2-for-1 Credit for Units Produced Outside Project Area 72 140 Pre-1994 Affordable Unit Surplus/(Deficit) 68 131 Planning Period Production (1994-2003) Highland Gateway Area - 19 16 35 North Palm Canyon - 6 6 South Palm Canyon - 3 3 Project Area 9 - 7 7 SUBTOTAL - 19 32 51 Planning Period Production Needs 3 8 40% 15% 2-for-1 Credit for Units Produced Outside Project Area - 16 Planning Period Affordable Unit Surplus/(Deficit) (3) 27 Duration of Redevelopment Plans (1973 -2028) Highland Gateway Area North Palm Canyon South Palm Canyon Project Area 9 SUBTOTAL - - - - Plan Duration Production Needs - - 40% 15% 2-for-1 Credit for Units Produced Outside Project Area - Plan Duration Affordable Unit Surplus/(Deficit) - - c �a -� -`1 Project Area Existing and Projected Affordable Housing Needs Table 1b Merged Redevelopment Project#2 Project Units Produced Very Low Total All Other Grand Affordable Total Pre-1994 Production No Units Produced SUBTOTAL Pre-1994 Production Needs - - 40% 15% Pre-1994 Affordable Unit Surplus/(Deficit) - - Planning Period Production (1994-2003) Barristo-Farrell - 2 2 Canyon - 12 - 12 SUBTOTAL - 12 2 14 Planning Period Production Needs 1 2 40% 15% 2-for-1 Credit for Units Produced Outside Project Area - - Planning Period Affordable Unit Surplus/(Deficit) (1) 10 Duration of Redevelopment Plans (1983 -2031) Barristo-Farrell Canyon SUBTOTAL - - - - Plan Duration Production Needs - - 40% 15% 2-for-1 Credit for Units Produced Outside Project Area 1 1 Plan Duration Affordable Unit Surplus/(Deficit) 1 1 Cash Flow Forecast Table 1 Merged Redevelopment Project#1 Nonhousing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beginning Available Fund Balance 2.548,000 2.341,971 2,340,688 2,419,626 2,567,682 Revenues Tax Increment Revenue 2.547,200 2.644,000 2,741,600 2,840,800 2,941,600 Interest Income 29,000 26,700 26,700 27,600 29,300 Building/Facilities Rent 1,000 - - - - Loan Proceeds 300,000 - - - - Plaza Theater 140,000 142,800 145.700 148,600 151,600 Miscellaneous Revenue 150 - - - - Total 3,017,350 2,813.500 2,914,000 3,017,000 3,122,500 Expenditures Debt Service 1,575.381 1,585,310 1,572,854 1,573,249 1,575,973 Taxing Agency Payments 604,466 631,074 658,208 685,895 713,980 Capital Project Debt Service 315,500 315,500 315,500 315,500 315,500 Personnel Costs 900 900 900 900 900 Materials, Supplies, &Services 143,360 146,200 149,100 152.100 155,100 Special Charges 133,172 135,800 138,500 141,300 144,100 Subtotal 2,772,779 2,814,784 2,835,062 2,868,944 2,905,553 Project Costs Palm Tree Wells Raising 2,500 Radio Rd Improve Phase II 33,000 UpTown Decorative Lights 42,000 F Stevens Art Academy 35,000 Plaza Theatre Fund 338.100 Desert Fashion Plaza 450,600 - - - Total 3,223,379 2,814.784 2,835,062 2,868,944 2,905.553 Ending Fund Balance 2,341,971 2,340.688 2,419,626 2,567,682 2.784.628 RSG,Inc, tables.xls PA#1 Cash Flow 10/1 W0'I 203 PM erQ -a • I � Cash Flow Forecast Table 2 Merged Redevelopment Project#2 Nonhousing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beginning Available Fund Balance 1,401,841 1,135,321 962,014 810.752 688,513 Revenues Tax Increment Revenue 1,909,600 1.968,800 2,028,800 2,089,600 2,152,000 Interest Income 42,700 34,600 29,300 24,700 21,000 Total 1,952,300 2,003.400 2,058,100 2,114,300 2,173,000 Expenditures Debt Service 974,941 966,345 972,034 971,529 970,069 Taxing Agency Payments 730,961 794,763 819,028 843,911 869,069 Capital Project Debt Service 280,000 280,000 280,000 280,000 280,000 Personnel Costs 600 600 600 600 600 Materials, Supplies, &Services 70,500 71,900 73,300 74,800 76,300 Special Charges 61,818 63,100 64,400 65,700 67,000 Subtotal 2,118,820 2,176,707 2,209,362 2,236,539 2,263,037 Project Costs Unscheduled Capital Projects 100,000 100,000 - - - - Total 2,218,820 2,176,707 2,209,362 2,236,539 2,263,037 Ending Fund Balance 1,135,321 962,014 810,752 688,513 598,475 RSG,Inc tables.xls PA#2 Cash Flow 10/18/01 2'WPM Ca a S I a Cash Flow Forecast Table 3 Merged Redevelopment Projects#1 &#2 Housing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beginning Available Fund Balance 1,288,736 1,400,357 1,840,873 2,325.233 2,860,376 Revenues Tax Increment Revenue 1,065,505 1,102,602 1,140,440 1,179,036 1,218,403 Interest Income 40,000 43,500 57,200 72,300 88,900 Land Rental 38,000 - - - - Contrib Non-Govt Sources 15,000 - - - - Total 1,158,505 1,146,102 1,197,640 1,251,336 1,307,303 Expenditures Debt Service 507,024 460,985 463,780 461,693 464,343 Capital Project Debt Service Personnel Costs 95,512 97,400 99,300 101,300 103,300 Materials, Supplies, & Services 51,860 52,900 54,000 55,100 56,200 Special Charges 92,488 94,300 96,200 98,100 100,100 Subtotal 746,884 705,585 713,280 716,193 723,943 Project Costs Unscheduled Capital Projects 300,000 300,000 - - - - Total 1,046,884 705,585 713,280 716,193 723,943 Ending Fund Balance 1,400,357 1,840,873 2,325,233 2,860,376 3,443,737 cry RSG,Inc. tables xls Housing Cash Flow 10/10101 2 09 PM Merged Redevelopment Project Nos. 1 & 2 Five-Year Implementation Plan October2, 2001 - FIRST DRAFT Community Redevelopment Agency of the City of Palm Springs 3200 Tahquiiz Canyon Way Palm Springs, Califomia 92262 P. �,_� Mr i. --- Rosenow Spevacek Group, Inc. 540 North Golden Circle, Suite 305 Santa Ana, California 92705 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com C Oka. -a - � Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 Table of Contents Introduction...............................................................................1 Contents of the Implementation Plan.......................................................... 1 Background ...............................................................................2 Merged Project Area No. 1 ............................................................................ 2 MergedProject Area No. 2............................................................................ 3 BlightingConditions...................................................................................... 3 Goals of the Constituent Redevelopment Plans........................................ 4 MergedProject Area No. 1 ........................................................................ 4 Merged Project Area No. 2...................................................................... 11 Anticipated Planning Period Projects and Programs.............. 15 Project No. 1 Non-Housing Programs....................................................... 15 InfrastructureProjects.............................................................................. 15 F. Stevens Art Academy.......................................................................... 15 PlazaTheater........................................................................................... 16 Desert Fashion Plaza .............................................................................. 16 Project No. 2 Non-Housing Programs....................................................... 16 Unscheduled Capital Projects.................................................................. 16 HousingPrograms....................................................................................... 17 Garden Springs Apartments.................................................................... 17 Matthew Drive Apartments ...................................................................... 17 HeritageApartments................................................................................ 18 Single Family Rehabilitation Program...................................................... 18 C� �� 555 Cottonwood Rehabilitation Project.................................................... 19 Coachella Valley Housing Corporation.................................................... 19 Unscheduled Capital Projects.................................................................. 20 Five-Year Budget.....................................................................21 HousingUnit Estimates...........................................................25 Appendix - Ten-Year Affordable Housing Compliance Plan ...26 co Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 Introduction This document is the second Five-Year Implementation Plan ("Plan") for the Merged Redevelopment Project No. 1 ("Project No. 1") and the Merged Redevelopment Project No. 2 ("Project No. 2") of the Community Redevelopment Agency of the City of Palm Springs ("Agency"). This Plan presents the Agency's goals and objectives, anticipated projects and programs, and estimated expenditures for the five year planning period beginning in fiscal year 2001-02 and terminating at the end of fiscal year 2005-06. Contents of the Implementation Plan Section 33490 of the California Community Redevelopment Law, Health and Safety Code Section 33000 et. sec. ("Law"), requires this Plan to include the following: ■ Specific Agency goals and objectives for the Merged Redevelopment Project Area No. 1 ("Project Area No. 1") and the Merged Redevelopment Project Area No. 2 ("Project Area No. 2"); ■ Specific programs, potential projects, and estimated expenditures proposed by the Agency over the next five years, and; ■ An explanation of how Agency goals, objectives, programs, and expenditures will eliminate blight within the Project Areas and improve and increase the supply of housing affordable to very low, low, and moderate income households. The Law also requires that this Plan address the Agency's affordable housing production and replacement housing needs and achievements. These items are specifically addressed in the amended Ten-Year Affordable Housing Compliance Plan, attached hereto as Appendix "A". ROSENOW SPEVACEK GROUP, INC. PA�F 1 Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 Background The Agency was created by the City of Palm Springs (the "City') City Council on August 14, 1972 by Ordinance No. 929 to undertake redevelopment activities that remove physically and economically blighted conditions that inhibit and continue to plague economic growth in the City. Between July 1973 and July 1991, the City Council established ten separate redevelopment project areas, which were merged by Ordinance Nos. 1583 and 1584 on May 26, 2000. Merged Project Area No. 1 Project Area No. 1 consists of seven of the original ten redevelopment project areas, and encompasses an area approximately 1,786 acres in size. The components of Project Area No. 1 are set forth below: ■ The Central Business District Redevelopment Project established on July 11, 1973 by Ordinance No. 959 and amended by Ordinance No. 1497 on December21, 1994. ■ The South Palm Canyon Redevelopment Project established on November 30, 1983 by Ordinance No. 1203 and amended by Ordinance No. 1494 on December2l, 1994. ■ The Ramon-Bogie Redevelopment Project established on November 30, 1983 by Ordinance No. 1202 and amended by Ordinance No. 1490 on December21, 1994. ■ The Oasis Redevelopment Project established on July 10, 1984 by Ordinance No. 1224 and amended by Ordinance No. 1495 on December2l, 1994. ■ The North Palm Canyon Redevelopment Project established on September 19, 1984 by Ordinance No. 1227 and amended by Ordinance No. 1498 on December2l, 1994. ■ The Highland-Gateway Redevelopment Project established on November 20, 1984 by Ordinance No. 1231 and amended by Ordinance No. 1491 on December 21, 1994. ■ The Citywide Redevelopment Project No. 9 established on December 29, 1988 by Ordinance No. 1321 and amended by Ordinance No. ROSENOW SPEVACEK GROUP,INC. PAGE: 60M q - ��' FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 1496 on December 21, 1994. Merged Project Area No. 2 Project Area No. 2 is comprised of the remaining three original redevelopment project areas, and is approximately 1,293 acres in size. The components of Project Area No. 2 are set forth below: ■ The Tahquitz-Andreas Redevelopment Project established on July 19, 1983 by Ordinance No. 1187 and amended by Ordinance No. 1489 on December 21, 1994. ■ The Baristo-Farrell Redevelopment Project established on May 7, 1986 by Ordinance No. 1267 and amended by Ordinance No. 1493 on December 21, 1994. ■ The Canyon Redevelopment Project established on July 19, 1991 by Ordinance No. 1388 and amended by Ordinance No. 1492 on December 21, 1994. Blighting Conditions Redevelopment projects are established to remedy conditions of blight as defined by the Law that is in effect at the time a redevelopment project is adopted. The Law's definition of what constitutes blight has changed substantially since the Project Areas were adopted. The current definition of blight, as stated in Section 33031 of the Law, is set forth below: ■ Unsafe/Dilapidated/Deteriorated Buildings. Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings. Factors that prevent or substantially hinder the economically viable use or capacity of buildings or lots. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors. ■ Incompatible uses. Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions of the project area. ■ Lots of Irregular Shape, Inadequate Size, and Under Multiple ROSENOW SPEVACEK GROUP, INC. PAGE 3 Cleh C—� � FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 ownership. The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. ■ Depreciated/Stagnant Property Values; Impaired Investments. Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). ■ High Business Turnovers and Vacancies/Low Lease Rates/Abandoned Buildings/Vacant Lots. Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use and served by utilities. ■ Lack of Neighborhood Commercial Facilities. A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drug stores, and banks and other lending institutions. ■ Overcrowding/Excess of Adult Businesses. Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults that has led to problems of public safety and welfare. ■ High Crime Rates. A high crime rate that constitutes a serious threat to the public safety and welfare. The Law also characterizes inadequate public improvements as blight when the aforementioned conditions are present. Goals of the Constituent Redevelopment Plans Though the ten constituent project areas were merged in May 2000, the Agency maintains separate Redevelopment Plans and goals for each component area. These goals formulate the overall strategy for this Implementation Plan and will serve as a guide for the Agency's activities over the next five years. Merged Project Area No. 1 Central Business District i> Assure Commercial Vitality. The restoration, preservation, and enhancement of Palm Springs palm-lined downtown so that it may ROSENOW SPEVACEK GROUP, INC. Ppr-, e494? FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 continue to be the attractive business, financial, entertainment, cultural, and fashion shopping "heart" of Palm Springs and of the Palm Springs resort image. 2) Coordinate Future Development. Guide the redevelopment and aesthetic improvement of downtown in such a manner that it enhances and compliments the natural desert and mountain environment within which the City of Palm Springs is situated. s) Eliminate Physical, Social and Environmental Deficiencies. Eliminate deteriorating buildings, incompatible and uneconomic land uses, inadequate parking, obsolete structures, and other environmental, economic and social deficiencies; improve the overall appearance of downtown buildings, streets, parking areas and other facilities, public and private; and assure that all buildings, new and old, are safe for people and businesses to occupy. a) Expand Developable Land Supply. Guide and secure the availability of property to attract major investors and developers. s) Protect Unique Character of Community. Presence artistically, architecturally, and historically worthwhile structures and sites. s) Provide Additional Parking Spaces. Increase the number of parking areas, assure effective utilization through easy accessibility and adequate signing and create a safe and pleasant pedestrian circulation system that will provide easy access to and from shopping areas with minimal conflict with automotive traffic. 7) Improve Traffic Circulation. Reduce the present excessive flow of automotive traffic through downtown Palm Springs by (1) providing acceptable alternate routes for vehicles with beyond Palm Springs destinations and (2)bysprs�ing-#car-alternate-modes-of-transportation through-downtownsuch-as_frequent shopper-bus-ser-vice-with-park..and ride-inducements;--and--bike-and-golf-cart--routes -and (a y ot-b h imaginative methods as may be devised; but without interrupting the desirable flow of traffic to downtown Palm Springs parking and business establishments. a) Upgrade Urban Design Standards. Establish and implement performance criteria which assure the highest site design standards and environmental quality and other design elements which provide unity and integrity to the entire project. s) Stimulate Economic Development. Encourage the development of higher density hotel, residential, and commercial use in the downtown ROSENOW SPEVACEK GROUP, INC. PAGE 0" &9at FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 area and peripheral to downtown, to ensure the economic and social vitality of the downtown area. Such use to be in accord with the General Plan. South Palm Canyon i) Eliminate Physical Social and Environmental Deficiencies. The elimination of environmental deficiencies in the Project Area, including, among others, small and irregular lots, obsolete and aged building types, s+ibstandard-alleys; and deteriorated public improvements. z) Assemble and Consolidate Land. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. s) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a) Assure Commercial Vitality. The strengthening of retail and other commercial functions in the area. s) Stimulate Economic Development. The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements to stimulate new commercial expansion, employment, and economic growth. s) Provide Additional Parking Spaces. The provision of adequate land for parking and open spaces. 7) Upgrade Urban Design Standards. The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. s) Improve Traffic Circulation. The alleviation of traffic hazards and congestion through the widening of Palm Canyon Drive (Highway 111) in conjunction with other agencies. s) Promote Hotel Development. The establishment of financial mechanisms to assist in the development of a new hotel. io) Correct Flood Control Deficiencies. The provisions of necessary public improvements, including but not limited to flood control facilities, to correct existing deficiencies. ROSENOW SPEVACEK GROUP, INC. C �OIL FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 Ramon-Bogie 1) Eliminate Physical Social and Environmental Deficiencies. The elimination of environmental deficiencies in the Project Area, including, among others, small and irregular lots, obsolete and aged building types, substefidard-ageys, and deteriorated public improvements. z) Assemble and Consolidate Underutilized Land. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. s) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a) Assure Commercial Vitality. The strengthening of commercial and industrial functions in the area. s) Stimulate Economic Development. The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements to stimulate new commercial and industrial expansion, employment, and economic growth. 6) Provide Additional Parking Spaces. The provision of adequate land for parking and open spaces. 7> Upgrade Urban Design Standards. The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. s) Invest in Commercial Development Opportunities. The establishment of financial mechanisms to assist and encourage the development of anaute-sales-center and light industrial and commercial development. Oasis i> Eliminate Blight. The elimination of environmental deficiencies in the Project Area, including, among others, small and irregular lots, obsolete and aged building types, substandard-alleys, and deteriorated public improvements. z) Assemble and Consolidate Land. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 7 69A . FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 a) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a) Assure Commercial Vitality. The strengthening of retail and other commercial functions in the area. s) Stimulate Economic Development. The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements to stimulate new commercial expansion, employment, and economic growth. s) Provide Additional Parking Spaces. The provision of adequate land for parking and open spaces. 7) Upgrade Urban Design Standards The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. s) Invest in Commercial Development. The establishment of financial mechanisms to assist in the development of new commercial facilities. s) Improve Public Infrastructure. The provisions of necessary public improvements, including but not limited to flood control facilities, and street improvements to correct existing deficiencies. North Palm Canyon i) Eliminate Physical Social, and Environmental Deficiencies. The elimination of environmental deficiencies in the Project Area, including, among others, small and irregular lots, obsolete and aged building types, substandard-alleys, and deteriorated public improvements. z) Assemble and Consolidate Land. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. s) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a) Assure Commercial Vitality. The strengthening of retail and other commercial functions in the area. s) Stimulate Economic Development. The strengthening of the economic base of the Project Area and the community by the installation of ROSENOW SPEVACEK GROUP, INC. PAGE 8 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 needed site improvements to stimulate new commercial expansion, employment, and economic growth. s) Provide Additional Parking Spaces. The provision of adequate land for parking and open spaces. 7) Upgrade Urban Design Standards. The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. s) Improve Traffic Circulation. The alleviation of traffic hazards and congestion on Palm Canyon Drive (Highway 111) and Indian Avenue. 9) Invest in Development. The establishment of financial mechanisms to assist in the upgrading and/or redevelopment of properties in the Project Area. io) Improve Public Infrastructure. The provisions of necessary public improvements, including but not limited to flood control facilities, to correct existing deficiencies. ii) Redevelop Hotel Properties. The establishment of programs to assist in the upgrading and/or adaptive reuse of the older hotel structures in the Project Area. Highland-Gateway i) Eliminate Physical Social and Environmental Deficiencies. The elimination of environmental deficiencies in the Project Area, including, among others, small and irregular lots, obsolete and aged building types, substandar4alleys, and deteriorated public improvements. z) Assemble and Consolidate Land. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. s) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a) Assure Commercial Vitality. The strengthening of retail and other commercial and industrial functions in the area. s) Stimulate Economic Development. The strengthening of the economic base of the Project Area and the community by the installation of ROSENOW SPEVACEK GROUP, INC. PAGE 9 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 needed site improvements to stimulate new commercial and industrial expansion, employment, and economic growth. 6) Increase Recreational Areas. The provision of adequate land for parks and open spaces. 7) Upgrade Urban Design Standards. The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. a) Promote Development. The establishment of financial mechanisms to assist in the upgrading and/or redevelopment of new commercial, industrial, and residential facilities. s) Improve Public Infrastructure. The provisions of necessary public improvements, including but not limited to flood control facilities, and street improvements to correct existing deficiencies. Project Area No. 9 C` i) Assemble and Consolidate Land. The acquisition of real property, either through negotiated purchase or, in rare instances, through the process of eminent domain. Property acquired by the Agency would be disposed of for use in accordance with this Plan. 2) Redevelop Dilapidated Buildings. The demolition or removal of certain buildings and/or improvements and the preparation of sites for reuse by private developers or government agencies. s> Provide Relocation Opportunities. Providing relocation assistance to displaced residential and nonresidential owners and tenants. This assistance would include finding a suitable replacement home or business location and relocation payments as required by law. a> Provide Owner Participation Opportunities. Providing for participation by owners and tenants presently located in the Project Area and the extension of preferences to business occupants desiring to remain or relocate within the redevelopment Project Area. s► Improve Public Infrastructure/Facilities. Providing public improvements such as the installation, construction, or reconstruction of streets, utilities, and other public improvements which are necessary for successful redevelopment and which are necessary to insure the public health, safety, and welfare. These improvements may include ROSENOW SPEVACEK GROUP, INC. PAGF 10 CM -O-o* FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 streets, alleys, sidewalks and walkways, curbs, gutters, street lights, sewers, storm drains, water and sewer facilities, or parks. 6) Rehabilitate Structures. Encouraging the rehabilitation or modernization of deteriorating or substandard residential and commercial structures. 7) Protect Unique Character of Community. Restoring architecturally or historically significant structures. a) Coordinate Future Development. Conducting planning and engineering studies to redesign areas suffering from faulty past planning practices. Merged Project Area No.2 Tahquitz-Andreas t) Eliminate Physical, Social, and Environmental Deficiencies. The elimination of environmental deficiencies in the Project Area, including, among others, small and irregular lots, obsolete and aged building types, substandard alleys, and deteriorated public improvements. 2) Assemble and Consolidate Underutilized Land. The assembly of land into parcels suitable for modern, integrated development with improved pedestrian and vehicular circulation in the Project Area. s) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a) Assure Commercial Vitality. The strengthening of retail and other commercial functions in the area. s) Stimulate Economic Development. The strengthening of the economic base of the Project Area and the community by the installation of needed site improvements to stimulate new commercial expansion, employment, and economic growth. 6) Provide Additional Parking Spaces. The provision of adequate land for parking and open spaces. 7) Upgrade Urban Design Standards. The establishment and implementation of performance criteria to assure high site design standards and environmental quality and other design elements which provide unity and integrity to the entire Project. ROSENOW SPEVACEK GROUP, INC. PAGE 11 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 s) Protect Unique Character of Community. The strengthening of the economic base of the Project Area and the community by assisting in the development of a cultural and convention facility or facilities. Baristo-Farrell i) Improve Public Infrastructure/Facilities. Provide or assist in the provision of needed public facilities and improvements in the Project Area including expansion of the main library, park and recreation improvements to Sunrise Plaza, construction of storm drain facilities, upgrading of sewerage facilities, provision of traffic signalization and street improvements, and construction of a system of bikeways in the Project Area. 2) Stimulate Economic Development. Enhance anLinthL shopping facilities in Palm Springs by improving or assisting provement, including rehabilitation and expansion, of the Shopping Center and the Palm Springs Mall, with possible development of a new center across Farrell Drive from the existing mall. s) Promote Convention-related Development. Provide assistance in the development of Phase II of the Palm Springs Convention Center, including construction of a hotel, in the Project Area. a) Assure Commercial Vitality. The strengthening of retail and other commercial functions in the area. s) Improve School Facilities. Provide financial assistance for the rehabilitation and improvement of the existing high school facility in the Project Area, and other public schools serving the Project Area, to increase the effectiveness, quality, and life of these facilities. 6) Encourage Stakeholder Participation. Encourage the cooperation and participation of property owners, public agencies, and community organizations in the elimination of blighting conditions in the Project Area. 7) Facilitate Investment in Community. Encourage investment in the Project Area by the private sector. a) Assemble and Consolidate Land. Remove economic impediments to land assembly and in-fill development in areas which are not properly subdivided for development. 8) Increase and Improve the Community's Supply of Affordable Housing. Protect the health and general welfare of low- and moderate-income ROSENOW SPEVACEK GROUP, INC. PAGE 122 60 RoV FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 persons by increasing or improving the community's supply of housing affordable to these persons. io> Coordinate Future Development. Prepare studies as necessary to Project implementation, including feasibility studies, design studies, and "concept plans" to assist in packaging and marketing specific development sites which may be identified in the Project Area. Canyon 1) Eliminate Physical Social and Environmental Deficiencies. The elimination of existing blighted conditions, be they properties or structures, and the prevention of recurring blight in and about the Project Area. 2) Coordinate Future Development. The development and redevelopment of property within a coordinated land use pattern of commercial, residential, resort, recreation, and public facilities in the Project Area consistent with the goals, policies, objectives, programs, standards, guidelines, and requirements as set forth in the City's adopted General Plan. s) Enhance Public Services. The development of public services and facilities including, but not limited to, emergency, cultural, recreational, maintenance, and operational services and facilities as are necessary and required for the redevelopment of the Project Area and the community. a) Improve Public Infrastructure. The elimination or mitigation of environmental deficiencies including inadequate street improvements, inadequate utility systems, and inadequate public services and social, physical, and environmental characteristics of blight. s► Improve Traffic Circulation. The development of a more efficient and effective circulation corridor system free from hazardous vehicular, pedestrian, equestrian, and bicycle interfaces designed to their ultimate circulation flow. s) Enhance Aesthetic Appeal of Community. Beautification activities to eliminate all forms of blight including, but not limited to, visual blight, in order to encourage community identity. 7) Diversity Economic Base. The encouragement, promotion, and assistance in the development and expansion of local commerce and needed commercial and resort facilities, increasing local employment and improving the economic climate within the Project Area. ROSENOW SPEVACEK GROUP, INC. PAGE 13 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 s) Assemble and Consolidate Land. The acquisition, assemblage, and disposition of sites of usable and marketable sizes and shapes for commercial, resort, recreation, residential, and public facility development within the Project Area. s► Seek Communitywide Benefits. The creation of a more cohesive and unified community by strengthening the physical, social, and economic ties between the downtown and resort, residential, commercial, and recreational land uses within and adjacent to the Project Area. iot Increase and Improve the Community's Supply of Affordable Housing. To provide for very low, low, and moderate income housing availability as required by county, Region, or State law and requirements, as necessary and desirable, consistent with the goals and objectives of the community. iit Cooperate with Local Agencies. To encourage the coordination, cooperation, and assistance of other local agencies, as may be deemed necessary, to ensure that projects undertaken by this Agency are implemented to their fullest and practical extent. 12) Upgrade Urban Design Standards. The achievement of a physical environment reflecting a high level of concern for architectural and urban design principles deemed important by the community and property owners. 13) Encourage Stakeholder Participation. To encourage community and property owner involvement and citizen participation in the adoption of policies, programs, and projects so as to ensure that the Redevelopment Plan is implemented in accordance with the objectives and goals of the General Plan. 14) Promote Development. To provide a procedural and financial mechanism by which the Agency can assist, complement, and coordinate public and private development, redevelopment, revitalization, and enhancement of the community. is) Stimulate Economic Development. To ensure that the community maintains a competitive position with surrounding communities, so as to enhance the economic climate and stability of the Project Area and the community. ROSENOW SPEVACEK GROUP, INC. PAGE 14 C"" amp Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 ProgramsAnticipated Planning Period Projects and The following narrative describes the non-housing and housing programs proposed for the next five years. Anticipated expenditures are based upon projected tax increment revenue over fiscal years 2001-02 to 2005-06. Greater or lesser funding may be available, depending upon changes of assessed valuation in the Project Areas. Project No. 1 Non-Housing Programs Infrastructure Projects During fiscal year 2001-02, the Agency plans on completing three specific infrastructure projects: 1) Palm tree well raising, 2) Phase II Radio Road improvements, and 3) Uptown decorative lights. Expenditures The 2001-02 budget earmarks a total of$77,500 of nonhousing revenues for the three projects. Plan Objectives the Protect Will Address ■ Improve Traffic Circulation ■ Stimulate Economic Development ■ Assure Commercial Vitality Conditions of Blight the Project Will Address ■ Inadequate Public Improvements F.Stevens Art Academy [Description) Expenditures The Agency will invest a total of$35,000 during fiscal year 2001-02 for this project. Plan Objectives the Project Will Address ROSENOW SPEVACEK GROUP, INC. PAC' C�e,9 R - 31 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 Conditions of Blight the Project Will Address ■ Plaza Theater [Description] Expenditures [Detail] Plan Objectives the Project Will Address Conditions of Blight the Project Will Address ■ Desert Fashion Plaza [Description] Expenditures [Detail] Plan Objectives the Project Will Address Conditions of Blight the Protect Will Address Project No. 2 NomHousing Programs Unscheduled Capital Projects [Description] Expenditures The 2001-02 budget sets aside $100,000 for funding these projects. ROSENOW SPEVACEK GROUP, INC. PAGE 16 Uh #4 ' ; FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 Plan Objectives the Project Will Address Conditions of Blight the Project Will Address Housing Programs Garden Springs Apartments This project involves the construction of 59 low income apartments outside the Project Area. All units will have covenants restricting their affordability for 55 years. The project currently has its entitlements, and is anticipated to be constructed and occupied by Expenditures The Agency plans on expending a total of$1,000,000 for this project Plan Objectives the Proiect Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Protect Will Address ■ Not applicable as an affordable housing project Matthew Drive Apartments This project involves the construction of 104 income apartment units at within Project Area No. _ Currently, discussions between the Agency and are ongoing, and it is anticipated the project could be completed by . Staff anticipates that the covenants on the 104 units will run to the duration of the Redevelopment Plan. Expenditures Staff estimates that the Agency may be asked to fund $850,000 for this project. Plan Objectives the Project Will Address ROSENOW SPEVACEK GROUP, INC. PAGE 17 e.,vl?-3. FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 ■ Eliminate Physical, Social, and Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Project Will Address ■ Not applicable as an affordable housing project Heritage Apartments The Agency is involved in the rehabilitation of 136 apartment units located at Once rehabilitation is complete in the Agency will receive covenants restricting all 136 units for low income households for the duration of the Redevelopment Plan. Expenditures Staff anticipates expending approximately $450,000 on this project. Plan Objectives the Project Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Project Will Address ■ Not applicable as an affordable housing project Single Family Rehabilitation Program The Agency continues to implement its single family rehabilitation program, featuring [GRANTS OR LOANS] of up to $25,000 per residence. In exchange for the rehabilitation assistance, the Agency receives 15 year covenants on all assisted units. The Single Family Rehabilitation Program will operate during fiscal years through Expenditures Over an 18 month period, the Agency anticipates expending $1,000,000 on this program. Plan Objectives the Project Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies ROSENOW SPEVACEK GROUP, INC. PAGE 18 nfkq Jr FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Project Will Address ■ Not applicable as an affordable housing project 555 Cottonwood Rehabilitation Project This 16-unit rehabilitation will result in the restriction of 7 units for low income households. The covenants will run to the duration of the Redevelopment Plan. The Agency expects the project to be completed during fiscal year Expenditures The Agency will be expending $ for this project. Plan Objectives the Project Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Project Will Address ■ Not applicable as an affordable housing project Coachella Valley Housing Corporation CVHC's self-help housing program has homeowners providing sweat equity into nine infill units in the City. Upon their completion in , all 9 units will be occupied by low income households. Expenditures [Detail] Plan Objectives the Project Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Project Will Address ROSENOW SPEVACEK GROUP, INC. PAS e A-oxfa FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 ■ Not applicable as an affordable housing project Unscheduled Capital Projects [Description] Expenditures [Detail] Plan Objectives the Project Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Project Will Address ■ Not applicable as an affordable housing project ROSENOW SPEVACEK GROUP, INC. PAGE 20 04 -3� ,. Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 Five-Year Budget Tables 1 - 3 present a preliminary five-year budget for Project No. 1 Nonhousing Fund, Project No. 2 Nonhousing Fund, and Housing Fund, respectively. Actual revenues and expenditures may differ from these forecasts and are therefore subject to change. RSG projected the remaining year's revenues and expenditures based on the assumptions delineated below: ■ Revenue and expenditures for fiscal year 2001-02 were based on the current budget ■ Future tax increment revenues were projected based on a 2% increase in the secured assessed value in the Project Areas. ■ Interest earnings were based on current year projections and beginning fund balances. ■ Debt service payments consist of bond debt service and City loan repayments. Bond debt service payments were based on the respective debt service schedules, While City loan payments were projected to remain constant during the five-year projections. ■ Taxing agency payments from the nonhousing fund have been calculated pursuant to terms of existing fiscal mitigation agreements. ■ Capital project debt service costs were obtained from the current budget, and assumed to remain constant during the forecast. ■ Personnel, Materials, and Special Charges were assumed to increase by 2% annually in the projections. ■ Project costs were obtained from the 2001-02 budget and staff estimates. Over the five-year planning period, the Agency anticipates investing $ in nonhousing programs, and $ in affordable housing programs. ROSENOW SPEVACEK GROUP, INC. PAGE 21 cAA A'-37 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS, 1 &2 Cash Flow Forecast Table 1 Merged Redevelopment Project#1 Nonhousing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beginning Available Fund Balance 662,299 211,076 (208,286) (566,132) (865,,35) Revenues Tax Increme t Revenue 2,112,000 2,199,088 2,287,918 2,37 /2470,942 Interest Incom 29,000 9,200 - - Building/Facilitie Rent 1,000 Loan Proceeds 300,000 Plaza Theater 145,000 :y Miscellaneous Revenu 150 ' Total 21587.150 2,208,288 87,918 2,378,524 2,470,942 Expenditures Debt Service 1,575,381 1,585,3��1 1,572,854 1,573,249 1,575,973 Taxing Agency Payments 419,460 443,Pi40 468,910 494,378 520,357 Capital Project Debt Service Y,773 Y5,500 315,500 315,500 315,500 Personnel Costs 900 900 900 900 Materials, Supplies, &Services 46,200 149,100 152,100 155,100 Special Charges 35,800 138,500 141,300 144,100 Subtotal 7,650 2,645,763 2,677,427 2,711,930 Project Costs Palm Tree Wells Raising ✓ 2,500 Radio Rd Improve Phas7fl 33,000 UpTown Decorative L,,ights 42,000 F Stevens Art Acad my 35,000 Plaza Theatre Fund 338,100 Desert Fashiop/Plaza 450,600 - Total ,/� 3,038,373 2,627,650 2,645,763 2,677,427 2,711,930 Ending and Balance 211,076 (208,286) (566,132) (8 ,035) (1,106,022) / j ROSENOW SPEVACEK GROUP, INC. PAGE?? CUA AV i FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 i Cash Flow Forecast Table 2 ' Merged Redevelopment Project#2 Nonhousing Fund,Z / 2001-02 2002-03 2003-04 2004-05 �005-06 Beginning Avail le Fund Balance 1,037,704 585,998 251,215 (101,2,74) (433,440) Revenues Tax Increment Rev QQQue 1,600,000 1,652,532 1.706,115 r1 760,770 1.816,517 Interest Income 42,700 24,100 10,300 - - Total / 1,642,700 1.676,632 1 716,415 1,760,770 1,816,517 Expenditures ?;� ,� Debt Service 9742941 966,�B 972,034 971,529 970,069 Taxing Agency Payments \606,547 6291470 678,568 700,310 722,487 Capital Project Debt Service 2,80,000 280,000 280,000 280,000 280,000 Personnel Costs 600 600 600 600 600 Materials, Supplies, &Services 70, 00 71,900 73,300 74,800 76,300 Special Charges 61,8 63,100 64,400 65,700 67,000 Subtotal 1„994,406 $,011,415 2,068,901 2,092,939 2,116,456 Project Costs Unscheduled Capital Pr/es100,000 100,000 - -�' - - Total+' ,f 2,094,406 2,011,415 2,068,901 2,2N,939 2,116,456 Endin Fund Balance 585,998 251,215 (101,271) (433,4N40) (733,379) ROSENOW SPEVACEK GROUP, INC. PAGE 2: FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS. 1 &2 Cash Flow Forecast °Table 3 Merged Redevelopment Projects#1 &#2 Housing Fund 2001-02 2002-03 2003-04 2t 2005-06 Beginning Available Fund Balance 3,202,923 3,137,316 3,392,759/3,677,931 3,998,698 Revenues. e' Tax Increment Revenue 888,277 921,829 956,052 990,960 1,026,565 Interest Income 40,000 39,200 /42,400 46,000 50,000 Land Rental 38,000 Contrib Non-Gout Sources 15,000 Total 981.277 „96>�29 998,452 1,036,960 1,076,565 Expenditures o' Debt Service 507,0 44 460,985 463,780 461,693 464,343 Capital Project Debt Service Personnel Costs 95 12 97,400 99,300 101,300 103,300 Materials, Supplies, &Services ,860 52,900 54,000 55,100 56,200 Special Charges >� k2,488 94,300 96,200 98,100 100,100 Subtotal 746,88,4 705,585 713,280 716,193 723,943 Project Costs Unscheduled Capital Pr jects 300,000 300,000 - - Total 1,046,884 705,585 713,280 716,193 723,943 Ending Fu Balance 3,137,316 3,392,759 3,677,931 3, 8,698 4,351,321 ROSENOW SPEVACEK GROUP, INC. PAGE 24 �JU d -WSid. Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 Housing Unit Estimates Section 33490(2)(A) of the Law requires that this Plan address housing revenues and expenditures, as well as any applicable housing production activities over the next five years. These elements are included in the Agency's Ten-Year Affordable Housing Compliance Plan, incorporated herein by reference. Additionally, Section 33490(2)(B) requires various estimates of housing unit production over the time frame of the next five years, next ten years, and over the duration of the Redevelopment Plans. These estimates are included in Table 4. [TABLE 4 TO FOLLOW] ROSENOW SPEVACEK GROUP, INC. PAGE 25 Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 Appendix-Ten-Year Affordable Housing Compliance Plan ROSENOW SPEVACEK GROUP,INC. LA � RESOLUTION NO. APPROVING THE IMPLEMENTATION PLAN AND HOUSING COMPLIANCE PLAN FOR THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA FOR THE PERIOD 2001-2002 THROUGH 2O05-2006 WHEREAS, all redevelopment agencies in California were required by the Community Development Reform Act of 1993 ("AB 1290") to adopt an "implementation plan" prior to December 31, 1994, and to readopt an implementation plan every five years thereafter, and WHEREAS, the Community Redevelopment Agency of the City of Palm Springs adopted its first Implementation Plan/Housing Compliance Plan on March 15, 1995, adopted the Mid-Term Review in June 1998, and is now past due in adopting the follow-up Implementation Plan. NOW, THEREFORE, be it resolved that the Community Redevelopment Agency of the City of Palm Springs, California, hereby approves and adopts the Implementation Plan/Housing Compliance Plan for the Community Redevelopment Agency for the perdiod 2001-2002 through 2005-2006. ADOPTED this day of 12001. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By: Assistant Secretary Executive Director REVIEWED AND APPROVED: