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HomeMy WebLinkAbout12/1/2004 - STAFF REPORTS (3) DATE: NeVEUBE'R-1-7,-2004- (pn�• ���L. `1 app� TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT PUBLIC HEARING ON MID-TERM REVIEW OF REDEVELOPMENT IMPLEMENTATION PLAN FOR THE PERIOD 2001-02 THROUGH 2O05-06 FOR MERGED AREA NO. 1 AND MERGED AREA NO. 2 RECOMMENDATION: It is recommended that the Community Redevelopment Agency of the City of Palm Springs, California("Agency'')conduct a Public Hearing and approve the Mid-Term Review of the Redevelopment Implementation Plan forthe Agency's Merged Project Area No. 1 & Merged Project Area No. 2. SUMMARY: The Agency is required to conduct a public hearing prior to approval of its State- required Mid-Term Review of the previously adopted Implementation Plan for Merged Redevelopment Project Nos. 1 and 2. Approval of the Mid-Term Review provides for compliance with these State-mandated redevelopment procedures. BACKGROUND: • This public hearing is for the State-required Mid-Term Review of the Five-Year Implementation Plan(the"Implementation Plan")for Merged Redevelopment Project Nos. 1 and 2 of the Community Redevelopment Agency of the City of Palm Springs (the"Agency"). The Agency was created by the City of Palm Springs (the"City")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. Ten individual redevelopment project areas were formed between July 1973 and July 1991, and in May 2000 seven of the original ten areas were combined to form Merged Redevelopment Project No. 1 and the remaining seven areas were combined to form Merged Redevelopment Project No.2. In February2003,the City Council adopted Amended and Restated Plans for Merged Redevelopment Project Areas No. 1 and 2,which were thereby designated as the official Redevelopment Plans for the two areas. All redevelopment activities 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 everyfive years thereafter. AB 1290 allowed for the preparation and adoption of a single, comprehensive implementation plan for all Project Areas and also included a"mid- term review"requirement,which provides that an agency shall hold a public hearing to review an adopted implementation plan during the third year after its adoption. The first Implementation Plan was adopted by Agency Resolution No. 968 on March 15, 1995, and addressed all ten redevelopment projects of the Agency. The mid- term review of the first Implementation Plan was approved by Agency Resolution No. 1044 on July 15, 1998. The second Implementation Plan was adopted on October 24, 2001 by Agency Resolution No. 1153 and addressed both Merged Redevelopment Project Areas (No. 1 & No. 2). Per the requirements of AB 1290, notice of this public hearing was published in The Public Record on October 12, 19 & 26, 2004, and posted in both project areas in addition to City Hall. OHN 4RA &!2�' irec unity& Economic Development APPROV D: /' Executive Director ATTACHMENTS: 1. Resolution 2. Mid-Term Review Report U�` 40 pALMSAR N City of Palm Springs * Office of the City Clerk * H'0�' ♦pTED♦95 * 3200 E.Taliquitz Canyon Way • Palm Springs, California 92262 C,q�/FORN�P Tel: (760)323-8204 • Pax: (760) 322-8332 • Web:www.ci.palm-springs.ca.us NOTICE OF CONTINUANCE DATE: November 18, 2004 TO: General Public FROM: Acting Assistant Secretary Community Redevelopment Agency SUBJECT: PUBLIC HEARING — NOVEMBER 17, 2004 MID-TERM REVIEW OF REDEVELOPMENT PLAN AND IMPLEMENTATION PLAN FOR MERGED REDEVELOPMENT PROJECT NO. 1 & 2 NOTICE IS HEREBY GIVEN that the regular meeting of the Members of the Community Redevelopment Agency of the City of Palm Springs, CA, held November 17, 2004, subject public hearing item was opened and continued to December 1, 2004, at 7:00 p.m., at the City of Palm Springs Council Chamber, 3200 E. Tahquitz Canyon Way. � / Kathie Hart, CMC Acting Assistant Secretary Posted: 11-18-04 Post Office Box 2743 • Palm Springs, California 92263-2743 State of California ) County of Riverside ) City of Palm Springs ) AFFIDAVIT OF POSTING OF NOTICE OF CONTINUANCE OF PUBLIC HARING ON MID-TERM REVIEW OF REDEVELOPMENT PLAN AND IMPLEMENTATION PLAN FOR MERGED REDEVELOPMENT PROJECT NO. 1 & 2 I, Kathie Hart, declare as follows: That I am the Acting Assistant Secretary, of the Community Redevelopment Agency of the City of Palm Springs, California; that at a regular meeting of the Members of the Community Redevelopment Agency of the City of Palm Springs, CA, held November 17, 2004, said public hearing was opened and continued to the time and place specified in the Notice of Continuance attached hereto; and that on November 18, 2004, at or before 4:00 p.m., a copy of said notice was posted at a conspicuous place near the door at which said meeting was held. I declare under penalty of perjury that the foregoing is true and correct. Executed on November 18, 2004, at Palm Springs, Ca. �L Kathie Hart, CMC Acting Assistant Secretary NOTICE OF PUBLIC HEARING ` CITY OF PALM SPRINGS MID-TERM REVIEW OF REDEVELOPMENT PLAN AND IMPLEMENTATION PLAN FOR MERGED REDEVELOPMENT PROJECT NOS. 1 AND 2 NOTICE IS HEREBY GIVEN THAT the Community Redevelopment Agency of the City of Palm Springs, California ("Agency') will hold a public hearing on November 17, 2004, at approximately 7 p.m. or as soon as possible thereafter, in the City Council Chamber,3200 E. Tahquitz Canyon Way, Palm Springs, California 92262. The purpose of the hearing is to consider the Mid-Term Review of the Redevelopment Plan and Implementation Plan for Merged Redevelopment Project Nos. 1 and 2, which are comprised of the Agency's ten (10) original Redevelopment Project Areas, as shown on the accompanying map (Exhibit"A'�. All interested persons are invited to attend the public hearing and express opinions on the item listed above. At any time not later than the hour set for the hearing, any person(s) may file a written statement with the City Clerk registering their opinions on the item. Public comment will end when the public hearing is closed. Should you wish to challenge any action taken by the Agency on the above matter following the public hearing, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk, at the address listed above, at or prior to the public hearing. Any questions regarding this Notice or the item listed above should be addressed to Curt Watts, Redevelopment Administrator at the City of Palm Springs Community & Economic Development Department at 3200 E.Tahquitz Canyon Way, Palm Springs, CA 92262, (760) 323-8260. PATRICIA A. SANDERS, MMC City Clerk Pub: Public Record, 10/12/04 Public Record, 10/19/04 Public Record, 10/26/04 HAUSERS\C-CLK\KATHIE H\Public Hearings\11 1THearing Notice-Mid-Term Review.doc EXHIBIT "A" — Map of Merged Redevelopment Project Nos. 1 & 2 W Z) Z W y > RACQUET CLUB ROAD 9?' z rrrr�r S VISTA CHINO 3 w N _ ALEJO ROAD N o y�` Y J 9G • 10 T�v? RW .fi 3tijHp C. ki dS E. PALM nse CANYON D B Figure 2 `3 Source: City of Palm Springs Redevelopment Project Areas E°(� November 2r S ti 1' Mid-Term Review Redevelopment Implementation Plan Merged Redevelopment Projects No. 1 & No. 2 Merged Project Area No. 1: Central Business District, Highland-Gateway, North Palm Canyon, Oasis, Project Area No. 9, Ramon-Bogie and South Palm Canyon Constituent Areas Merged Project Area No.2: Baristo-Farrell, Canyon and Tahquitz-Andreas Constituent Areas November 17, 2004 Community Redevelopment Agency of the City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 INTRODUCTION This document is the required Mid-Term Review of the Five-Year Implementation Plan(the "Implementation 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 (the "Agency'). 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. 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. AB 1290 also included a"mid-term review"requirement,which provides that an agencyshall hold a public hearing to review an adopted implementation plan no earlier than two years, and no later than three years, after it has been adopted. The Agency's first Implementation Plan was adopted by Resolution No. 968 of the Agency on March 15, 1995, and addressed all ten original redevelopment projects of the Agency,which were merged by Ordinance Nos. 1583 and 1584 on May 26, 2000 (collectively, the "Project Areas"). The Agency's second Implementation Plan was adopted by Agency Resolution No. 1153 on October24,2001 and addressed both Merged Redevelopment Projects No. 1 and No. 2. It should be noted that, pursuant to Health and Safety Code Section 33490(a)(1) (B), the adoption of the Implementation Plans did not constitute approval of any specific program, project, or expenditure from the Agency or the City Council. The current Implementation Plan meets the requirements of Section 33490 of the California Community Redevelopment Law, Health and Safety Code Sections 33000 et sea. (the "Law"), which required the Implementation Plan to include the following: • Specific Agency goals and objectives for Project Areas No. 1 and No. 2; • Specific programs, potential projects,and estimated expenditures proposed by the Agency over the five years covered by the Plan; 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 required the Implementation Plan to address the Agency's affordable housing production and replacement housing needs and achievements, which were specifically addressed in the amended Ten-Year Affordable Housing Compliance Plan attached to the Implementation Plan. -1 - BACKGROUND Project Area No. 1 consists of seven constituent redevelopment project areas,which were merged on May 26,2000 by Ordinance No. 1584. The seven constituent project areas are: • The Central Business District Redevelopment Project established on July 11, 1973 by Ordinance No. 959 and amended by Ordinance No. 1276 on November 5, 1986, Ordinance No. 1497 on December 21, 1994, Ordinance 1576 on December 15, 1999, and Ordinance 1584 on May 31, 2000. • The South Palm Canyon Redevelopment Project established on November30, 1983 by Ordinance No. 1203 and amended by Ordinance No. 1494 on December 21, 1994, Ordinance 1576 on December 15, 1999, and Ordinance 1584 on May 31, 2000. • The Ramon-Bogie Redevelopment Project established on November 30, 1983 by Ordinance No. 1202 and amended by Ordinance No. 1490 on December 21, 1994, Ordinance 1576 on December 15, 1999, and Ordinance 1584 on May 31, 2000. • The Oasis Redevelopment Project established on July 10, 1984 by Ordinance No. 1224 and amended by Ordinance No. 1495 on December 21, 1994, Ordinance 1576 on December 15, 1999, and Ordinance 1584 on May 31, 2000. • The North Palm Canyon Redevelopment Project established on September 19, 1984 by Ordinance No. 1227 and amended by Ordinance No. 1498 on December 21, 1994, • Ordinance 1576 on December 15, 1999, and Ordinance 1584 on May 31, 2000. The Highland-Gateway Redevelopment Project established on November 20, 1984 by Ordinance No. 1231 and amended by Ordinance No. 1255 on January 8, 1986, Ordinance No. 1491 on December 21, 1994, Ordinance 1576 on December 15, 1999, and Ordinance 1584 on May 31, 2000. • Redevelopment Project Area No. 9 established on December 29, 1988 by Ordinance No. 1321 amended by Ordinance No. 1496 on December 21, 1994,and Ordinance 1584 on May 31, 2000. Project Area No. 2 consists of three constituent redevelopment project areas, which were merged on May 26, 2000 by Ordinance No. 1583. The three constituent project areas are: • The Tahquitz-Andreas Constituent Area"means the Tahquitz-Andreas Redevelopment Project established on July 19, 1983 by Ordinance No. 1187 and amended by Ordinance No. 1489 on December 21, 1994, Ordinance 1576 on December 15, 1999, and Ordinance 1583 on May 31, 2000. • The Baristo-Farrell Redevelopment Project established on May 7, 1986 by Ordinance No. 1264 and amended by Ordinance No. 1493 on December 21, 1994,Ordinance 1576 on December 15, 1999, and Ordinance 1583 on May 31, 2000. • The Canyon Redevelopment Project established on July 19, 1991 by Ordinance No. 1388 and amended by Ordinance No. 1492 on December21, 1994 and Ordinance 1583 on May 31, 2000. -2- i PROJECTAREA BOUNDARIES The boundaries of the Project Areas are illustrated on the maps attached hereto and incorporated herein as Exhibits A and B. CONSTITUENTAREA,CHARACTERISTICS The tables below summarize the characteristics of each Constituent Area of the two Project Areas. MERGED REDEVELOPMENT PROJECT NO.1 TABLE A Amount of Bonded Limit of Indebtedness Cumulative Final Date of Termination Outstanding at Tax Increment Date to Plan Date Constituent Area Any One Time Revenue Incur Debt Termination of Revenue Central Business District $ Not required 1 $150,000,000 N/A s 7/11/2014 07/11/2024 acres South Palm Canyon 80,000,000 80,000.000 N/A s 11/30/2024 11/30/2034 17 acres Ramon-Bogie 100,000,000 100,000,000 N/A s 11/30/2024 11130/2034 440 acres Oasis 30,000,000 30,000,0004 NIA, 07/10/2025 07/10/2035 4 acres North Palm Canyon 64,000,000 65,000,0004 N/A, 09/19/2025 09/19/2035 324 acres Highland-Gateway 50,000,000 50,000,0004 N/As 11120/2025 11/20/2035 114 acres Project No.9 60.000,000 6,000,000 annually N/A s 12/29/2029 12/29/2039 737 acres tl Pursuant to Section 33334.1 of Redevelopment Law 2/From the original date of redevelopment plan adoption for each constituent area 3/Constant 1986 Dollars 4/Constant 1984 Dollars 5/Deleted by Plan Amendment adopted May 5,2004(City Council Ordinance No.1651). MERGED REDEVELOPMENT PROJECT NO.2 TABLE B Amount of Bonded Limit of Indebtedness Cumulative Final Date of Termination Outstanding at Tax Incren nt Date to Plan Date Constituent Area An One Time Revenue Incur Debt Termination of Revenue ansto- arrell 345,0t10,000 80,000,000 2 5 07 2027 05 07 2037 483 acres Canyon 2,100,000,000 800,000,000 N/A2 07/19/2032 07/19/2042 746 acres 164 acres Andreas 90,000,000 90,000,000 N/A2 07/19/2024 07/19/2034 164 acre 1/From the original date of redevelopment plan adoption for each constituent area 2/Deleted by Plan Amendment adopted May 5, 2004(City Council Ordinance No.1652). DEFINITIONS OF The Projects were established to address the conditions of blight as the term was defined by Law at the time each particular redevelopment project was adopted. The Law's definition of what constitutes blight has changed substantially since the original Project Areas were adopted. The definition of blight, as stated in Section 33031 of the Law and as included in the Implementation Plan is as follows: • 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 violation, 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 building 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 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 bank 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 characterized inadequate public improvements as blight when the aforementioned conditions are present. j; -4- U REDEVELOPMENT • The Agency proposes to alleviate and prevent the spread of blight and deterioration in the Project Areas through: 1. The acquisition, installation, construction, reconstruction, redesign, or reuse of streets, utilities,curbs, gutters,sidewalks,traffic control devices,flood control facilities,buildings, structures, parks, playgrounds, and other public improvements. 2. The rehabilitation, remodeling, demolition, or removal of buildings, structures, and improvements. 3. The rehabilitation, development, preservation, provision, or construction of affordable housing in compliance with State Law. 4. Providing the opportunity for participation by owners and tenants presently located in the Project Area and the extension of preferences to persons engaged in business desiring to remain or relocate within the redeveloped Project Area. 5. Providing relocation assistance to displaced occupants in accordance with applicable State Law. 6. The development or redevelopment of land by private enterprise or public agencies for purposes and uses consistent with the objectives of this Plan. 7. The acquisition of real property, personal property, any interest in property, and improvements on the property by purchase,lease,option,grant, bequest,gift,devise,or any other lawful means, or, where it is deemed necessary, by exercising the power of eminent domain, as permitted by Section 503 of this Plan,after conducting appropriate public hearings and making appropriate findings. 8. Site preparation and development and construction of necessary off-site improvements. 9. Improving open space. 10. Managing property acquired by the Agency. 11. Providing financing for the assistance of commercial and industrial development that increases the economic base of both the Project Area and the City, and the number of temporary and permanent jobs. 12. The disposition of real property, personal property, any interest in property, and improvements on the property through methods such as sale, lease, exchange, subdivision, transfer, assignment, pledge, encumbrance or any other lawful means of disposition. 13. Recommending standards to ensure that property will continue to be used in accordance with this Plan. 14. The closure or vacation of certain streets and the dedication of other areas for public purposes. 15. Providing replacement housing, as required. 16.Applying for, receiving and utilizing grants and loans from federal or state governments or any other source. -5- 17. Clearing or moving buildings, structures or other improvements from any real property acquired by the Agency. To accomplish these actions and to implement this Plan,the Agency is authorized to use the powers provided in this Plan, and the powers now or hereafter permitted by the Redevelopment Law and any other State law. REDUCED CRA FUNDING One significant factor that has affected the Agency's Implementation Plans has been the dramatic decrease in discretionary income, due to a previous lack of new building activity in Palm Spring in the late 1980's and early 1990's and the overall drop in property values from the prolonged Southern California recession during that same time period. The Agency lost $760,000 in tax increment from property revaluation in 1996 and was slated to lose at least an additional $300,000 in 1997. Plus, the State of California's attempts to balance its own budget and meet its mandated obligations to K-12 school districts through its Education Revenue Augmentation Fund (ERAF) — taking nearly $1 million from the Agency over a three year period in 1 he 1990's, and nearly$750,000 between 2002 and 2004—has also had a detrimental impact. As a result, several project areas have had limited scheduled capital projects or programs other than the servicing of existing debt. PLAN AMENDMENTS—EMINENT DOMAIN&TIME EXTENSIONS The City Council adopted Amended and Restated Redevelopment Plans for Project Areas No. 1 and No.2 by Ordinance Nos. 1623 and 1624 on February 19, 2003 and reestablished eminent domain authority for non-residential properties within nine of the original ten redevelopment constituent areas. By Ordinance No. 1656 adopted on June 16, 2004 the City Council amended the Plan for Merged Project No.2 to include eminent domain authority covering non-residential property within the Tahquitz-Andreas constituent area as well. As a result,eminent domain may be used to acquire any real property in the Project Area, except for properties legally devoted to a residential use or lands held in Trust by the United States for any individual Indian or for the Aqua Caliente Band itself. However,the power of eminent domain may be used to acquire a leasehold or other interest from the lessee or holder(but not the fee interest of the allottee)which is on land held in Trust by the United States, but only with the written consent of the Tribal Council of the Agua Caliente Band. By Ordinance Nos. 1649, 1650, 1651 and 1652 adopted on May 5, 2004, the City Council amended the Plans for Merged Project Areas No. 1 and No.2 to extend by one year the time limits for the effectiveness of the Plans and for payment of indebtedness and receipt of tax increment and to also eliminate the time limit on establishment of loans, advances and indebtedness with respect to the Plans. By Resolution No. 1246 adopted on April 21,2004,the Agency authorized the issuance of its Merged Project No. 1 Tax Allocation Refunding Bonds,2004 Series A in a principal amount not to exceed$16,000,000 and Merged Project No.2 Tax Allocation Refunding Bonds,2004 Series B in a principal amount not to exceed $10,000,000. This action allowed the Agency to take advantage of the current interest rate environment to refinance its 1994 Bonds and raise approximately $2,300,000 for redevelopment activities in Merged Project No. 1 and $3,000,000 for redevelopment activities in Merged Project No. 2. Several capital projects • are expected to be facilitated through the availability of these funds. � ,1w�m -6- PROJECT UPDATES-INTRODUCTION The projects described below were included in the adopted Implementation Plan and would each address one or more of the following Plan Objectives and previously described Conditions of Blight: Plan Objectives • Improve traffic circulation • Stimulate economic development • Assure commercial vitality for various segments of the Project Area • Upgrade urban design standards • Improve public infrastructure • Eliminate physical, social and environmental deficiencies • Coordinate future development • Provide additional parking spaces • Stimulate economic development • Invest in development • Redevelop hotel properties • Protect unique character of community • Encourage stakeholder participation • Increase, improve and preserve the community's supply of affordable housing Conditions of Blight • Inadequate Public Improvements • Depreciated/stagnant property values • High business turnovers and vacancies • Physical conditions that limit the economic viability and use of lots/buildings • High crime rates • Unsafe/unhealthy buildings PROJECT UPDATES—MERGED PROJECT NO. I —NON-HOUSING PROGRAMS Infrastructure and Street Improvement Projects The Agency previously earmarked funds toward completing various infrastructure projects including palm tree well raising, Phase If Radio Road improvements and Uptown decorative lights. In late 2003 the Agency awarded a contract in the amount of$181,321 to install the underground electrical system and light pole foundations for a total of 35 new decorative pedestrian walkway lights in the Heritage District/Uptown area along North Palm Canyon Drive from Granvia Valmonte to Tachevah Drive. That work has now been completed. In 2003-04 the Agency committed a total of $68,580 for professional engineering design 7 csml v� v 00: • services for a sewer line extension along North Palm Canyon Drive south of Tramway Road and provided approximately$50,000 to complete the construction of a landscaped street median on South Palm Canyon Drive at Sunny Dunes Road. Plaza Theatre The Agency owns the 800-seat Plaza Theatre in downtown Palm Springs,which is the home of the Fabulous Palm Spring Follies. In 2003 the Agency extended the Follies lease beyond its previous expiration date of 2006 until May 31, 2018 with a consecutive series of annual extension options and annual CPI increases in the rent starting in June 2005. Steps have been taken on an annual basis to address system upgrades at the building, which was constructed in the 1930's. In addition, a new monument sign on Palm Canyon Drive was added during the 2003-04 fiscal year. Frances Stevens Art Academy The Frances Stevens Art Academy is an effort bythe Agencyto consolidate and improve the role of the Frances Stevens Park and its facilities into the redevelopment of the north end of downtown and the Uptown revitalization. Potential planned improvements include fencing, amphitheatre, paving, parking lot, building and other improvements. The Agency spent $51,000 for this project in 2000-01 and $5,000 each in 2002 and 2003. Palm Canyon Drive and Indian Canyon Drive Public Improvements Since the early 1990's the Agency has funded a number of street improvement on Palm Canyon Drive in the Central Business District, in the Uptown area, and in the area south of downtown. As described above, 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 properties on Palm Canyon Drive and Indian Canyon Drive, including, but not limited to the Desert Fashion Plaza, Desert Shadows Inn, and Frances Stevens Park. Specific projects since 2001 have included the installation of decorative lights on East Tahquitz and West Tahquitz and improvements on Indian Canyon Drive related to the downtown parking structure and along Palm Canyon Drive in front of Desert Fashion Plaza. Downtown Parking Structure and Surface Parking 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 successful 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 previously 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 the Henry Frank Arcade lot. The Agency assisted the City of Palm Springs with funds to plan for the development and construction of a new downtown parking structure located on Baristo Road between Palm Canyon and Indian Canyon Drives. The new 380-space parking structure was completed in November 2002 at a total cost of$6 million funded through the City's Parking Fund. In addition, the Agency funded a major expansion and redesign of the Henry Frank Arcade lot. In 2004 the Agency approved a reciprocal easement agreement to effectuate the construction of a new food court project in the 300 block of North Palm Canyon Drive adjacent to the Agency-owned parking lot on Belardo Road. -8- Burnett Development Palm Springs East and Palm Springs West In 2001, Burnett Development proposed the largest new home tract in the City of Palm Springs in more than a decade in the area north of Sunrise Way and San Rafael Road. A significant portion of the developer's Palm Springs West site is land acquired from the City of Palm Springs(through the Agency,which 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 sold the 19-acre vacant potion of the mobile home park to Burnett Development,along with the 22.21 acre City parcel,for the purpose of constructing market-rate"for sale"housing in the area. The sale was 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 property was subsequently sold to K. Hovnanian for its Four Seasons active adult community targeted to residents aged 55 and older which is now under construction. Commercial Rehabilitation/Facade Improvement Program The Agency has had a number of small commercial rehabilitation programs overthe pastten years, all of which have had a good track record. The Agency considered re-instituting a minor commercial rehab/facade improvement program in both Project Areas,aimed at small retailers desiring to address signage issues, historic aspects of their building,vandalism,or other blighting factors in the property. Due to annual budget restrictions the previously anticipated $25,000 per year during the current Implementation Plan period have not been budgeted. 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 has been working with the owners of the Palm Springs Square on North Pam Canyon Drive 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 on to the existing site. The developer has not asked for Agency financial assistance and the project has been on hold until recently. It is now in the "neighborhood meeting" process prior to submitting applications. Desert Shadows OPA The owners and managers of Desert Shadows Inn,in the former North Palm Canyon project area, received Agency approval in late 2001 for assistance with funding public improvements associated with a 17 unit hotel-condominium development. The total assistance was not to exceed $185,000 and covered a variety of costs including but not limited to civil engineering, undergrounding utilities,offsite landscape and irrigation,curb and gutter, and decorative hardscape at the project's entry. The project has now been completed. East Palm Canyon Drive/Cherokee Road Business Expansion The Agency entered an Agreement in January 2000 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 and the aesthetic quality of the property have improved considerably since the Agreement. The dealership subsequently expanded again,this time acquiring a collision repair shop to the south of their property. They now wish to add additional product and the Agency is working with the owners on a swap of adjacent Indian land for the desired expansion. s �� Star Canyon Resort DDA The Agency approved a Disposition and Development Agreement in 2001 with the developers of the Star Canyon Resort,to provide a land write down for a 210-room hotel and 264-unit timeshare project located on South Palm Canyon Drive. It was subsequently sold to Fairfield Resorts and redesigned to be a 255-unit timeshare resort. As part of the amendment to the DDA to accommodate the design change, the Agency negotiated a Financial Impact Mitigation Fee ("FIM Fee') to reimburse the City for the public improvements and other investments in the area that benefit the project. The total amount of tax benefit to the City, including the FIM Fee,sales tax, and transient occupancy tax from rentals(rather than time share owners)is expected to be nearly$900,000 per year once the project is built out. Palm Canyon/Stevens Road Development(Casa del Camino and Reservoir Parcels) The Agency acquired a 0.75-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. In January 2002, the Agency entered into an exclusive agreement to negotiate with Philip Cleary to provide for a market value sale of these two properties for approximately $400,000 for inclusion in a mixed-use commercial/residential project with "live/work"spaces located on Palm Canyon Drive. The Agency will enter into a DDA with the developer and that agreement is expected to be approved on December 1, 2004. Plaza Mercado DDA Amendment/Sonny Bono Fountain The 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 paring lot. The Developer constructed a Sony Bono Memorial/Fountain using the liquidated damages funds to settle the dispute. Dumpsite Development The Agency intends to enter into a DDA with a private developer in 2005 that would allow the developer (who is in the process of remediating the City's former dumpsite to DTSC standards and marketing the Agency-owned 14 acres, as well as the adjacent 23 acres)to plan the site for retail development. The Agency entered into a License Agreement with the developer in 2004 to allow for access to the Agency's property to clean up the entire site in advance of pursuing the environmental review process necessary prior to constructing the new shopping center. Hotspot/Hotel Redevelopment The Agency was developing a program to eradicate blighted"hotspot'hotels and multifamily residential projects that become magnets for illicit and undesirable activity, and have code violations. The 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. The Biltmore was sold and demolished and is now proposed as residential units; the Spanish Inn is under consideration for acquisition by an adjacent developer. A small dilapidated and vacant hotel property, The • Desert Hotel on Indian Canyon Drive,was approved for acquisition by the Agency in 2004. The structure will be demolished and the lot held for future redevelopment purposes in downtown. In 2004, the Agency also approved an Owner Participation Agreement for the future development of a 48-room boutique hotel at the southeast corner of Cahuilla Road r i, and Tahquitz Canyon Way in downtown. _� Mid-Valley Center Development A developer has assembled property 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. The Developer has asked the Agency for financial assistance in the project, in that there are significant infrastructure issues in the project area that need to be addressed, including utility lines and street improvements. In addition,there a number of troubled commercial and industrial properties in the vicinity that may require Agency assistance,including the former Market Fair,Skypoint Drive,and the Knutsen Tract. Staff is analyzing the assistance request relative to the resort hotel and golf course. 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 in determining which buildings need to be preserved in future redevelopment projects within the project area and would take into consideration the results of the recently completed Citywide Historic Resources Survey approved in October 2004 by the City Council as an informational document to aid in future planning and historic preservation efforts. PROGRESS REPORT—MERGED PROJECT NO.2—NON-HO USING PROGRAMS Prairie Schooner Property Development The Agencyacquired a 5.7 acre parcel in the former Tahquitz-Andreas project area in 1989. j 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 recently completed Spa Casino. Per the terms of a License Agreement between the Agency and the Agua Caliente Band of Cahuilla Indians, the Tribe constructed a 475-space parking lot on the site in 2003 and as part of the reorientation of the Convention Center to face west it is now a valuable parking property. Lundin Development/Ralph's Agreement The Agency awarded a contract in the amount of$351,300 in late 2002 to construct street widening improvements along Ramon Road and Sunrise Way adjacent to a new community shopping center being developed at the northwest corner of the Ramon Road/Sunrise Way intersection. In addition to the street widening, the project included new curb and gutter, sidewalk, driveway approaches, and bus turn-out; traffic signal modification at the intersection to facilitate the street widening improvement; and construction of raised, landscaped medians. Lundin Development redeveloped an old Ralphs Grocery Store and shopping center,assembling the site with two other large parcels (one being a flood control channel, which needed to be bridged) and constructing the new center. The developer completed construction of the new center in 2004 and is currently tenanting the few remaining spaces in the center. 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 and would take into consideration the results of the'recently completed Citywide Historic Resources Survey • approved in October 2004 by the City Council as an informational document to aid in future planning and historic preservation efforts. 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 Specific Plan Area and OPA The Agency evaluated a request for financial assistance from a developer working on the redevelopment of the former Canyon Hotel site into a 450-room hotel and 250-unit timeshare project. Because of hydrology, street, and infrastructure needs, the request for public assistance dollars for infrastructure has been significant. No new developer has stepped forward since 2002. Canyon Area Flood Control, Street, and Other Infrastructure Improvements In addition to the Canyon Vista project, nearly all the major developable tracts in the former Canyon project area will have flood control, street and other infrastructure issue related to their development. The Agency has been working 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. Following an extensive Agency-funded fee study in 2003,the Agency developed a Canyon wide drainage fee and has committed $2 million to constructing the first improvement. . 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 fora major portion of the infrastructure and public improvements needs in the area, including streets, landscaping and hardscape, lighting, drainage improvements and other public improvements. In 2002, the Agency awarded a contract in the amount of $101,249 for construction of an underground electrical system to accommodate future street and pedestrian walkway lighting along both sides of Tahquitz Canyon Way from Indian Canyon Drive to Calle El Segundo. Following completion of this project, adjacent property owners have purchased Agency-approved decorative pedestrian and street lights for installation as property improvement and development projects have been undertaken. PROGRESS '•RT—HOUSING PROGRAMS Neighborhood Revitalization—Single Family Rehabilitation The Agency previously initiated a financial assistance program of grants and deferred loans to rehabilitate owner-occupied single-family residences in the various redevelopment project areas and other locations throughout the City subject to certain income eligibility and loan repayment requirements. This program has assisted 65 households with minor to substantial rehab to their homes expending $925,463 since its 1999 inception. Coachella Valley Housing Corporation (CVHC) Cottonwood/Chuckwalla OPA CVHC's self-help housing program had homeowners provide sweat equity to help develop ^ nine infill homes in a previously blighted neighborhood in the City. Upon their completion in 2002, all 9 units were occupied by low-income households. w� i 12 �� s„ Helmick Multifamily Rehabilitation Project This 16-unit apartment complex rehabilitation would have resulted in the restriction of 15 units for low-income households at 555 and 585 Cottonwood Road and 556 and 594 Chuckwalla Road and the covenants would have run through the duration of the Redevelopment Plan. The Agency previously expected the project to be completed during fiscal year2002-03 but the property owners opted to sell the property rather than participate with the Agency on the rehab project. Desert Highland Single Family Infill Programs The Desert Highland neighborhood is the lowest-income neighborhood in the City though it is largely single-family neighborhood. There area substantial number of vacant parcels in the neighborhood, partly though parcels that were never developed and partly though demolition. A program of infill development is being pursued as part of the revitalization of that neighborhood. In addition to five previously owned Agency lots in the area, during 2003-04 the Agency approved the purchase of five single family lots from Coachella Valley Housing Coalition(CVHC)at a total price of$113,000, plus two Chapter 8 purchases from the County of Riverside at a total price of$149,602 for the program. In addition the Agency is effectuating a land swap for two additional single family lots. The first developer DDA for five lots should be approved on December 1, 2004. Desert AIDS Project (DAP) - Special Needs and Transitional Housing Project DAP is proposing to construct a total of 85 units of special needs housing restricted to residents with HIV/AIDS. Riverside County will construct and operate an adjacent Family Care Center offering healthcare services to its constituents. Staff anticipates the project would be constructed in 2005. Per the project's Amended and Restated DDA,the Agency will provide total assistance in the amount of$1,300,000 and contribute a 1.23 acre parcel of City-owned land (valued at$205,000)to the project. Province Group DDA This proposed multi-family development was located in the former Project Area No.9. The developers proposed 108 2-, 3- and 4-bedroom apartments on the site, divided equally between very low and low income households. The proposed financing structure was tax- exempt bonds and the 4% tax credit program; with a land write-down from the Agency of approximately$875,000. The proposed project was subsequently withdrawn. Garden Springs Apartments This project anticipated the construction of 59 low income apartments outside the Project Area and all units would have covenants restricting their affordability for 55 years. The project received its entitlements and was anticipated to be constructed and occupied by 2003, but was unable to reconstruct its financing and the land is being remarketed as affordable for-sale housing. Coyote Run Expansion The Agency previously participated in the development of a 140-unit low and very low income housing project on the west side of Sunrise Way, north of San Rafael Drive. Coachella Valley Housing Coalition(CVHC)developed the Coyote Run Apartments in 1992 and has been interested in expanding the project onto an adjacent 6.25-acre,Agency-owned parcel. The new addition will consist of 66 multi-family apartments restricted to low-income families, though the project is not in a redevelopment project area. The Agency has committed a total of$1,350,000 in financial assistance(including the value of the property) a to the project. The total cost of the project is estimated at$10.9 million and construction will commence in late 2004. - 13- Heritage Apartments The Agency provided$450,000 in rehabilitation assistance for 136 apartment units located at 2300 South Calle El Segundo in return for the property owners spending $225,000 and accepting income restrictions on half of the units for the duration of the Redevelopment Plan. The improvements included constructing anew block wall and security gates around the complex, new air conditioning units for each of the apartments, rebuilding most of the stairway structures, repaving the parking lot, and resurfacing the swimming pool and spa. The rehabilitation has been completed. Gloriette Apartments (Outside Project Areas) The Agency received a request for financing assistance for a market-rate apartment complex proposing to set aside 20% of its units (42 units) for low-income renters. The request was subsequently withdrawn. Mobile Home Park Redevelopment The Agency is actively pursuing redevelopment of several mobile home parks in the community, including Sunrise Village, Golden Sands, Sahara, and El Dorado. A non profit agency acquired the Sahara park with Agency subsidies in exchange for restricted rents. That transaction concluded in 2002. The Agency assisted low and moderate income owners of the El Dorado Mobile home park to settle a dispute on the owner's intentions to convert the park to condominium ownership. During 2003-04, the Agency assisted 17 Moderate Income purchasers with the transition to resident ownership in the park at a cost of$85,000, and provided$38,675 in assistance to low-income renters forthe income certification fee. In addition, the park received $1 million in state MPROP funds to assist low-income purchasers. The Agency approved a DDA with a non-profit purchaser of the Sunrise Village park, contributing the Agency's underlying fee interest in the land at a value of $392,000. In addition,the City approved a conduit Mortgage Revenue Bond on behalf of the non-profit to purchase and upgrade the park plus make deposits to certain reserve funds. The bonds closed on November 8, 2004. d� -14- ExhibitA—ProjectArea Map—Merged Project No. 1 Mill a9irhP.L�lllll •.�11��arr1.�YllIS, �;III11`NH llOffmAl "it��tl_a-"tl'. Y7� +►,_'I ,;-111111-= _1111 I'Ilh:uru_=__ =rl�YYi Gm LK Exhibit B—Project Area Map—Merged Project No.2 l I — v�� 1 I€ ' ' ;►r.�rl.� ll�� ��' ;Q;G; - r �11'II17HiF�lll " _� . I+��Ifll�r—,II,IIIfiIII I �1 �■� Iff ■t I , I�+ F:ml 111� III11:,11111== =Lull �u-.�ii) IHU1 Et- CEE rui I. i4 li 11� • 1 Proof of Publication In Newspaper STATE OF CALIFORNIA County of Riverside Laura Reyes says: NOTICE OF PUBLIC HEARING 1. 1 am a citizen of the United States, a cEW OF REDPAL SPRINGS MID REVIEW OF REDEVELOPMENT PLAN AND resident of the City of Indio, County of IMPLEMENTATION PLAN Riverside, State of California, and over the OR MERGED REDEVELOPZ ENT PROJECT NOS IAND age of 18 years. NOTICE IS HEREBY GIVEN THAT the Community Redevelopment Agency of the City of Palm Springs,California 2. 1 am the Office & Production Manager of ("Agency")will hold a public hearing on November 17,2004,at The Public Record, a newspaper of approximately 7 p.m.or as seen as possible thereafter,in the City Council Chamber, 3200 E Tahgwtz Canyon Way, Palm general circulation printed and published in Springs,California 92262 the City of Palm Springs, County of The purpose of the hearing is to consider the Mid-Term Review of the Redevelopment Plan and Implementation Plan I Riverside, State of California. Said The for Merged Redevelopment Project Nos 1 and 2,which are Public Record is a newspaper of general compress! of the Agency's ten (10) original Redevelopment Project Areas,as shown on the accompanying map(Exhibit circulation as that term is defined in W)_ Government Code section 6000, Its status All interested persons are invited to attend the public hearing and express opinions on the item listed above. At any as such having been established by judicial time not later than the hour sat for the marring,any person(s) decree of the Superior Court of the State of may file a written statement with the City Clerk registering their opinions on the Item.Public comment will end when the public California in and for the County of Riverside hearing is closed. Should you wish to challenge any action in Proeeedin No. Indio 49271, dated March taken by the Agency on the above matter following the public g hearing,you may be limited to raising only those issues you or 31, 1987, entered in Judgment Book No. someone else raised at the public hearing described in this 129, page 355, on March 31, 1987. no0ce,or in written correspondence delivered to the City Clark, at the address Ilstetl above,at or prior to the public hearing. - - 3. The Public Record is a newspaper of Any questions regarding this Notice or the Item listed general circulation ascertained and above should be addressed to Cud Watts, Redevelopment Administrator at the City of Palm Springs Community 6 Economic Development Department at 3200 E Tahquitz established in the City of Palm Springs in I Canyon Wag Palm Springs,CA 8226IC AX SANDERS. +µ,tk „L' the County of Riverside, State of California, PATRICIAA.SANDERS,MMC Case No. RIC 358286, Filed June 8, 2001. city clerk EXHIBIT" )ept A"-Map of Merged Redevelopment Pre 4. The notice, of which the annexed is a true Nos.1 42 printed copy was published in the newspaper on the following publication dates to wit: October 12, 2004 October 19, 2004 October 26, 2004 ' I certify under penalty of perjury that the above is true and correct. Dated at Palm Springs, California, this 26th '� ��� day of October, 2004. m, ea. 4M off October 12,19,26,2004 i ?La Reyes & Pro ucti Manager RESOLUTION NO. • APPROVING THE MID-TERM REVIEW OF THE REDEVELOPMENT IMPLEMENTATION PLAN FOR THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA 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 everyfive years thereafter,and WHEREAS,AB 1290 also included a"mid-term review"requirement, requiring agencies to conduct a public hearing during the third year after adoption of the Implementation Plan,to allow the community to review the progress of the Community Redevelopment Agency ("Agency'); and WHEREAS; the Agency adopted its first Implementation Plan on March 15, 1995 and approved its first Mid-Term Review in June 1998; and WHEREAS, the Agency adopted its second Implementation Plan on October 24, 2001 following the merger of its ten original redevelopment project areas into two merged redevelopment project areas in May of 2000;and is now due to adopt the Mid-Term Review. NOW, THEREFORE, BE IT RESOLVED bythe Community Redevelopment Agency of the City of Palm Springs, California that the Mid-Term Review of the Implementation Plan for Merged Project Areas No. 1 and No. 2 is hereby approved. ADOPTED this day of 2004. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED &APPROVED •