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HomeMy WebLinkAbout00431C - CRA FIVE YEAR IMPLEMENTATION PROGRAM MERGED REDEVELOPMENT PROJECTS 1 2 DOCUMENT TRACKING Page: 25 Report: Expired Documents Summary August 3, 2007 Condition: Oldest Date= / I,ALL Groups,ALL Services,ALL XREFs Document# Description, 0a�� Approval Date Expiration Date Closed Date A0417C Stein Mart CPA r 04/ / 001 '�04/01/2006 Company Name: John Wessman � n 1 r,y✓ Address: 300 S. Palm Canyo"�n b)r., Palm Springs, CA 92262 Group: COMMUNITY& ECONOMIC (V` p G Service: In File �� 1 xRef: COMMUNITY& ECONOMIC DEVELOPMENT Ins. Status: A policy has Expired. VVVIII�� A0431C C R A Five Year Implementation Plan t �10/24/2001 07/01/2006 S Company Name: Implementation & Housing Plan t Address: �.u..Group: COMMUNITY& ECONOMIC Service: In File Q, ��✓ \ xRef: COMMUNITY& ECONOMIC DEVELOPMENT Ins. Status: INACTIVE A0448C DDA Low Income Housing Tax Credits (formerly Sunrise Hacienda... 07/03/2002 07/01/2003 Company Name: Hacienda Sunset Affordable Housing a Address: 45-701 Monroe St., Suite G, Plaza 1, India, CA 92201 Group: COMMUNITY& ECONOMIC t Service: In File xRef: COMMUNITY& ECONOMIC DEVELOPMENT Ins. Status: Certificate and Policies are OK CRA Five-Year Implementation Plan AGREEMENT #431C R1153, 10-24-01 Merged Redevelopment Project Nos. 1 &2 — Five-Year Implementation Plan Adopted October 24, 2001 Community Redevelopment Agency of the City of Palm Springs 3200 Tahquiiz Canyon Way Palm Springs, Califomia 92262 7 3. n_...a.y�,.c _ .... Rosenow Spevacek Group,Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com 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 PlanLimitations................................................................................................3 Blighting Conditions........................................................................................4 Goals of the Constituent Redevelopment Plans..........................................5 Merged Project Area No. 1...........................................................................5 Merged Project Area No.2........................................................................ 11 Anticipated Planning Period Projects and Programs.............. 16 Project No. 1 Non-Housing Programs........................................................ 16 Infrastructure Projects................................................................................ 16 PlazaTheatre............................................................................................. 16 Frances Stevens Art Academy................................................................. 17 Palm Canyon Drive and Indian Canyon Drive Public Improvements...... 17 Desert Fashion Plaza Redevelopment..................................................... 18 Downtown Parking Structure and Surface Parking Lots.......................... 19 Burnett Development Palm Springs East and Palm Springs West......... 20 Commercial Rehabilitation/Fagade Improvement Program.....................20 Palm Springs Art Colony........................................................................... 21 Desert Shadows OPA............................................................................... 22 East Palm Canyon Drive/Cherokee Road Business Expansion ............. 22 StarCanyon Resort DDA.......'................................................................... 23 Palm Canyon/Stevens Road Development..............................................23 Plaza Mercado DDA Amendment/Sonny Bono Fountain........................ 24 Dumpsite Development.............................................................................25 Hotspot/Hotel Redevelopment..................................................................25 Mid-Valley Center Development...............................................................26 HistoricSite Survey ................,.................................................................. 27 Project No.2 Non-Housing Programs........................................................27 Prairie Schooner Property Development.................................................. 27 Lundin/Ralph's Agreement.....:...................................................................28 Historic Site Survey................'................................................................... 28 Casino DDA Amendment.......................................................................... 29 Canyon Vista Resort Specific Plan Area and OPA..................................29 Canyon Area Flood Control,Street, and Other Infrastructure Improvements............................................................................................ 30 Section 14 Public Improvements.............................................................. 31 HousingPrograms.........................................................................................31 Neighborhood Revitalization=Single Family Rehabilitation.................... 31 Coachella Valley Housing Corporation Cottonwood/Chuckwalla OPA... 32 Helmick Multifamily Rehabilitation Project................................................ 32 Desert Highland Single Family Infill Programs......................................... 33 DAP—Special Needs and Transitional Housing Project......................... 33 ProvinceGroup DDA............. ................................................................... 34 Garden Springs Apartments...................................................................... 34 Coyote Run Expansion (Outside Project Areas)...................................... 35 Heritage Apartments.................................................................................. 35 Gloriette Apartments (Outside Project Areas).......................................... 36 Mobile Home Park Redevelopment.......................................................... 36 Five-Year Budget......................................................................38 Housing Unit Estimates ...........................................................42 Appendix —Ten-Year Affordable Housing Compliance Plan ...44 Fivle-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. seg. ("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. PAGE 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 December 21, 1994. ■ The South Palm Canyon Redevelopment Project established on November 30, 1983 by Ordinance No. 1203 and amended by Ordinance No. 1494 on December 21, 1994. • The Ramon-Bogie Redevelopment Project established on November 30, 1983 by Ordinance No. 1202 and amended by Ordinance No. 1490 on December 21, 1994. • The Oasis Redevelopment Project established on July 10, 1984 by Ordinance No. 1224 and amended by Ordinance No. 1495 on December 21, 1994. ■ 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. ■ 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 2 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 1496 on December 21, 1994. Mellged 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 December21, 1994. ■ The Baristo-Farrell Redevelopment Project established on May 7, 1986 by Ordinance No. 1267 and amended by Ordinance No. 1493 on December21, 1994. ■ The Canyon Redevelopment Project established on July 19, 1991 by Ordinance No. 1388 and amended by Ordinance No. 1492 on December21, 1994, Plan Limitations The current time limits of both Project Areas are summarized in Table 1 below. 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 Tahquitz-Andreas 07/19/83 40 Years 07/19/23 07/19/33 Barris to-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 ROSENOW SPEVACEK GROUP,INC. PAGE 3 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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 Builldings. 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 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 requir6the 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. ROSENOw SPEVACEK GROUP,INC. PAGE 4 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 ■ 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. ■ Nigh crime mates. 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.7 Central Business District i) Assure Commercial Vitality. The restoration, preservation, and enhancement of Palm Springs palm-lined downtown so that it may continue to be the attractive business, financial, entertainment, cultural, and fashion shopping "heart" of Palm Springs and of the Palm Springs resort image. z► 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. ROSENOW SPEVACEK GROUP,INC. PAGE 5 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 s► Protect Unique Character of Community. Preserve artistically, architecturally, and historically worthwhile structures and sites. 6) 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) by providing for alternate modes,of transportation through downtown, and bike and golf cart routes and (3) by other 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 Desiqn Standard:.. 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. 9) Stimulate Economic Development. Encourage the development of higher density hotel, residential, and commercial use in the downtown 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, and deteriorated public improvements. zt Assemble and Consolidate Land. The assembly of land into parcels suitable for modem, integrated development with improved pedestrian and vehicular circulation in the',Project Area. a) Coordinate Future Development. The replanning, redesign, and development of undeveloped areas which are stagnant or improperly utilized. a> Assure Commercial Vitality. I The strengthening of retail and other commercial functions in the area. ROSENOW SPEVACEK GROUP,INC. PAGE 6 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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. a) Provide Additional Parkinq Spaces. The provision of adequate land for parking and open spaces. 7) Upgrade Urban Desiqn 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) 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. 1o) Correct Flood Control Deficiencies. The provisions of necessary public improvements, including but not limited to flood control facilities, to correct existing deficiencies. 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, and deteriorated public improvements. Z) Assemble and Consolidate Underutilized Land. The assembly of land into parcels suitable for modem, integrated development with improved pedestrian and vehicular circulation in the Project Area. 8) 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. ROSENOW SPEVACEK GROUP,INC. PAGE 7 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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 an auto-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, and deteriorated public improvements. zt Assemble and Consolidate Land. The assembly of land into parcels suitable for modem, 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) Uporade 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► Invest in Commercial Development. The establishment of financial mechanisms to assist in the development of new commercial facilities. ROSENOW SPEVACEK GROUP,INC. PAGE 8 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 9) 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 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, and deteriorated public improvements. 2) Assemble and Consolidate Land. The assembly of land into parcels suitable for modem, integrated development with improved pedestrian and vehicular circulation in the Project Area. 3) 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. s) Improve Traffic Circulation. The alleviation of traffic hazards and congestion on Palm Canyon Drive (Highway 111) and Indian Avenue. s) Invest in Development. The establishment of financial mechanisms to assist in the upgrading and/or redevelopment of properties in the Project Area. 1o) Improve Public Infrastructure. The provisions of necessary public improvements, including but not limited to flood control facilities, to correct existing deficiencies. ROSENOW SPEVACEK GROUP,INC. PAGE 9 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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-Gatewav 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, and deteriorated public improvements. z) Assemble and Consolidate Land. The assembly of land into parcels suitable for modem; 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 needed site improvements to stimulate new commercial and industrial expansion, employment, and economic growth. s► 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. at Promote Development. The establishment of financial mechanisms to assist in the upgrading and/or redevelopment of new commercial, industrial, and residential facilities. 9) 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 it Assemble and Consolidate Land. The acquisition of real property, either through negotiated purchase or, in rare instances, through the ROSENOW SPEVACEK GROUP,INC. PAGE 10 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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. sj 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. at 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. sj 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 streets, alleys, sidewalks and walkways, curbs, gutters, street lights, sewers, storm drains, water and sewer facilities, or parks. sj 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. sj Coordinate Future Development. Conducting planning and engineering studies to redesign areas suffering from faulty past planning practices. Merged Project Area No.2 Tahquitz-Andreas ij 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, and deteriorated public improvements. ROSENOW SPEVACEK GROUP,INC. PAGE 11 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 z) Assemble and Consolidate Underutilized Land. The assembly of land into parcels suitable for modem, integrated development with improved pedestrian and vehicular circulation in the Project Area. 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. 6) Provide Additional Parkinq 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. a► Protect Unique Character of Communes. 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 1) Improve Public Infrastructure/Facilities. Provide or assist in the provision of needed public facilities Find 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. z► Stimulate Economic Development. Enhance and expand shopping facilities in Palm Springs by improving or assisting in the improvement, including rehabilitation and expansion, of the Ralph's Shopping Center and the Palm Springs Mall, with possible development of a new center across Farrell Drive from the existing mall. ROSENOW SPEVACEK GROUP,INC. PAGE 12 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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. at 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. s) 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. s) Assemble and Consolidate Land. Remove economic impediments to land assembly and in-fill development in areas which are not properly subdivided for development. s) Increase and Improve the Community's Supply of Affordable Housing. Protect the health and general welfare of low- and moderate-income persons by increasing or improving the community's supply of housing affordable to these persons. iot 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 i) 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. z► 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, - ROSENOW SPEVACEK GROUP,INC. PAGE 13 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 standards, guidelines, and requirements as set forth in the City's adopted General Plan. 8) 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. 4►- 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 intarfaces designed to their ultimate circulation flow. a► Enhance Aesthetic Appeal of CommunitV. 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. a► Assemble and Consolidate Land. The acquisition, assemblage, and disposition of sites of usable I 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 Communifi%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. ii) Cooperate with Local Agencies. To encourage the coordination, cooperation, and assistance of other local agencies, as may be ROSENOW SPEVACEK GROUP,INC. PAGE 14 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 deemed necessary, to ensure that projects undertaken by this Agency are implemented to their fullest and practical extent. 12t 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. tat 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. 15) 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 15 Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 & 2 . . grams 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 dedorative lights. Expenditures The 2001-02 budget earmarks a total of $77,500 of nonhousing revenues for the three projects. Plan Objectives the Proiect Will Address ■ Improve Traffic Circulation ■ Stimulate Economic Development ■ Assure Commercial Vitality Conditions of Blight the Project Will Address ■ Inadequate Public Improvements Plaza Theatre The Agency owns the 800-seat Plaza Theatre, which is the home of the Fabulous Palm Springs Follies, The Follies lease extends to 2006. The building, which was constructed in the 1930's, will require systems upgrades over the next several years. Expenditures No expenditures have been identified at this time. ROSENOW SPEVACEK GROUP,INC. PAGE 16 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Plan Objectives the Project Will Address ■ Stimulate Economic Development ■ Assure Commercial Vitality Conditions of Blight the Project Will Address Inadequate Public Improvements Frances Stevens Art Academy The Frances Stevens Arts Academy is an effort by the Agency to 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. Improvements may include fencing, amphitheatre, paving, parking lot, building and other improvements. Expenditures The Agency will invest a total of$35,000 during fiscal year 2001-02 for this project. Plan Obiectives the Proiect Will Address ■ Stimulate Economic Development ■ Upgrade Urban Design Standards ■ Improve Public Infrastructure Conditions of Blight the Proiect Will Address ■ Inadequate Public Improvements Palm Canyon Drive and Indian 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 ROSENOW SPEVACEK GROUP,INC. PAGE 17 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 streetscape improvements related to the redevelopment of the properties on Palm Canyon Drive and Indian! Canyoin Drive, including, but not limited to the Desert Fashion Plaza, Desert Shadows Inn, and Frances Stevens Park. Expenditures Not yet available. Plan Objectives the Proiect Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality ■ Upgrade Urban Design Standards ■ Improve Traffic Circulation Conditions of Blight the Project Will Address ■ Inadequate Public Improvements Desert Fashion Plaza Redevelopment Closed 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. Expenditures Contingent on future developmental Plan Obiectives the Protect Will Address ROSENOW SPEVACEK GROUP,INC. PAGE 18 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 IF Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality ■ Coordinate Future Development Conditions of Blight the Project Will Address • Depreciated/Stagnant Property Values ■ High Business Turnovers and Vacancies 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 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 one or more parking structures in the downtown area.. Expenditures The Agency anticipates project costs of $100,000 per year during the planning period. Plan Obiectives the Proiect Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality • Provide Additional Parking Spaces ■ Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ROSENOW SPEVACEK GROUP,INC. PAGE 19 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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. Expenditures No Agency expenditures. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings Commercial RehabilitationlFayade,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 in both Project Areas, aimed at small retailers desiring to address sig;nage issues, historic aspects of their buildings, vandalism, or other blighting factors in the property. Expenditures ROSENOW SPEVACEK GROUP,INC. PAGE 20 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 The Agency anticipates project costs of $25,000 per year during the planning period. Plan Objectives the Project Will Address r Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality • Stimulate Economic Development Conditions of Blight the Project Will Address Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings Palm Springs Ark 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. Expenditures Not yet available. Plan Obiectives the Proiect Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality • Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ■ Depreciated/Stagnant Property Values ■ High Business Turnovers and Vacancies ROSENOW SPEVACEK GROUP,INC. PAGE 21 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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 unit hotel-condominium development. If granted, the total assistance provided the property will represent approximately 2.5% of the private investment over the same period. The resort's plans include additional expansions over the five year planning period, which may include other requests for Agency assistance. Expenditures The Agency anticipates expending $200,000 during fiscal year 2001-02 on this project at this time. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings East Palm Canyon Drive/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 itsl current location. The Agency will work over the next several years to facilitate the growth and expansion of both businesses. The area of interest all of the former Project Area 9g, were ultimately several dealerships could be sited, including VIP Motor Cars. Expenditures No Agency expenditures. Plan Objectives the Project Will Address ROSENOW SPEVACEK GROUP,INC. PAGE 22 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 ■ Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality ■ Stimulate Economic Development Conditions of Blight the Protect Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings 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-room hotel and 264-unit 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. Expenditures Contingent on future needs of project. Plan Objectives the Proiect Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Assure Commercial Vitality ■ Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings 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. Expenditures ROSENOW SPEVACEK GROUP,INC. PAGE 23 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 No Agency expenditures, but the Agency does anticipate receiving $150,000 in fiscal year 2001-02 for the sale of the property. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Stimulate Economic Development ■ Invest in Development ■ Redevelop Hotel Properties Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ■ High Business Turnovers and Vacancies Plaza Mercado DDA Amendment/Sonny Bano 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. Expenditures No additional Agency expenditures. Plan Objectives the Proiect Will Address ■ Eliminate Physical, Social and Envirormental Deficiencies ■ Invest in Development ■ Coordinate Future Development Conditions of Blight the Proiect Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ROSENOW SPEVACEK GROUP,INC. PAGE 24 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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. Expenditures No Agency expenditures. Plan Objectives the Project Will Address • Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Stimulate Economic Development ■ Invest in Development Conditions of Blight the Protect Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ■ Impaired Investments Hotspot/Hotel Redevelopment The Agency is developing a program to eradicate blighted "hotspot" hotels and multifamily residential projects that become magnets for illicit and undesirable activity, and have code violations. 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. Expenditures Not yet available Plan Objectives the Project Will Address ROSENOW SPEVACEK GROUP,INC. PAGE 25 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Stimulate Economic Development ■ Invest in Development ■ Redevelop Hotel Properties Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the 'Economic Viability and Use of Lots/Buildings ■ High Crime Rates Mid-Valley Center Development One 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. While the Developer has root 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. In addition, there are 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. Expenditures Not yet available. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and ,Environmental Deficiencies ■ Coordinate Future Development ■ Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ROSENOW SPEVACEK GROUP, INC. PAGE 26 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 ■ Inadequate Public Improvements 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. Expenditures No Agency assistance. Plan Obiectives the Project Will Address • Eliminate Physical, Social and Environmental Deficiencies ■ Protect Unique Character of Community Conditions of Blight the Project Will Address Unsafe/Unhealthy Buildings Project No.2 Non-Housing Programs 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. Expenditures Not yet available. Plan Obiectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Assure Commercial Vitality ROSENOW SPEVACEK GROUP,INC. PAGE 27 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 v Stimulate Economic Development Conditions of Blight the Project Will Address s Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings LundinMalph's Agreement Lundin Development is proposing to redevelop 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. Expenditures Not yet available. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and Envirormental Deficiencies ■ Coordinate Future Development ■ Assure Commercial Vitality ■ Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ■ Inadequate Public Improvements 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. Expenditures No Agency expenditures. ROSENOW SPEVACEK GROUP,INC. PAGE 28 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 $2 Plan Obiectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Protect Unique Character of Community Conditions of Blight the Proiect Will Address ■ Unsafe/Unhealthy Buildings 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. Expenditures No Agency expenditures. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Assure Commercial Vitality ■ Stimulate Economic Development Conditions of Blight the Project Will Address ■ Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings Canyon Vista Resort Specific Plan Area and OPA The Agency is evaluating 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. Expenditures Contingent on the needs of future redevelopment of this project. Plan Objectives the Project Will Address ROSENOW SPEVACEK GROUP,INC. PAGE 29 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development • Assure Commercial Vitality s Stimulate Economic Development Conditions of Blight the Project Will Address s Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings Canyon Area Flood Control,Street,'Iand 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 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. Expenditures Not yet available. Plan Obiectives the Proiect Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Improve Public Infrastructure ■ Encourage Stakeholder Participation Conditions of Blight the Proiect Will Address ■ Physical Conditions that Limit the 'Economic Viability and Use of Lots/Buildings ■ Inadequate Public Improvements ROSENOW SPEVACEK GROUP,INC. PAGE 30 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 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 and other public improvements. Expenditures Not yet available. Plan Objectives the Project Will Address ■ Eliminate Physical, Social and Environmental Deficiencies ■ Coordinate Future Development ■ Improve Public Infrastructure Conditions of Blight the Project Will Address • Physical Conditions that Limit the Economic Viability and Use of Lots/Buildings ■ Inadequate Public Improvements Housing Programs Neighborhood Revitalization-Single Family Rehabilitation The Agency is planning on providing financial assistance to substantially rehabilitate 14 single family residences in various locations in Project Area No. 1. Affordability covenants would be recorded on all 14 units, including 10 very low, 3 low, and 1 moderate income units. This project should be completed in fiscal year 2001-02. Expenditures No additional expenditures. Plan Objectives the Proiect Will Address ■ Eliminate Physical, Social, and Environmental Deficiencies • Increase, Improve and Preserve the Community's Supply of Affordable ROSENOW SPEVACEK GROUP,INC. PAGE 31 FNE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Housing i Conditions of Blight the Proiect Will Address ■ Not applicable as an affordable housing project Coachella Valley Housing Corporation Cottonwood/Chuckwalla OPA CVHC's self-help housing program has homeowners providing sweat equity into nine infill units in the City. Upon their completion in 2001-02, all 9 units will be occupied by low income households. Expenditures The Agency anticipates expending $303,000 during fiscal year 2001-02. Plan Objectives the Project Will Address ■ Eliminate Physical, Social, and,Environmental Deficiencies s Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Proiect Will Address ■ Not applicable as an affordable', housing project Helmick Multifamily Rehabilitation(Project This 16-unit rehabilitation will result in the restriction of 15 units for low income households at 555 and 585 Cottonwood. The covenants will run to the duration of the Redevelopment Flan. The Agency expects the project to be completed during fiscal year 2002-03 Expenditures The Agency will be expending $160,000 for this project. Plan Objectives the Project Will Address ■ Eliminate Physical, Social, an6Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Proiect Will Address ■ Not applicable as an affordable housing project ROSENOW SPEVACEK GROUP,INC. PAGE 32 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.t &2 Desert Highland Single Family Infll 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. Expenditures The Agency anticipates expending $60,000 on 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 Proiect Will Address ■ Not applicable as an affordable housing project DAP-Special Needs and Transitional Housing Project DAP is proposing to construct a total of 85 very low income units in the Project Area. Twenty-five (25) of the 85 units would be restricted for special needs households, and the remaining 60 units would be reserved for transitional housing purposes. Staff anticipates the project would be completed in 2003-04. Expenditures None at this time. 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 Proiect Will Address ■ Not applicable as an affordable housing project ROSENOW SPEVACEK GROUP,INC. PAGE 33 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Province Group DDA 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, divided equally between very low and low income households. 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. Expenditures The Agency anticipates expending!$875,000 during the planning period on this project. Plan Objectives the Project Will Address ■ Eliminate Physical, Social, andlEnvironmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable Housing Conditions of Blight the Proiect Will Address ■ Not applicable as an affordable housing project 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 by2003. 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 Proiect Will Address Not applicable as an affordable' housing project ROSENOW SPEVACEK GROUP,INC. PAGE 34 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Coyote Run Expansion (Outside Project Areas) 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. Expenditures The Agency does not anticipate any cash investment in this project beyond contributing the land. Plan Obiectives 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 Heritage Apartments The Agency is involved in the minor rehabilitation of 136 apartment units located at 300 South Calle El Segundo. Once rehabilitation is complete in 2002, 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 Proiect Will Address ■ Not applicable as an affordable housing project ROSENOW SPEVACEK GROUP,INC. PAGE 35 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Gloriette Apartments(Outside Project Areas) 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. Expenditures Not yet available. Plan Objectives the Proiect Will Address • Eliminate Physical, Social, andiEnvironmental 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 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 Eldorado. A nonprofit organization has proposed to acquire the Sunrise Village park from the Agency in exchange for a 19 acre parcel and covenants on the mobile home units. The 19 acre parcel is proposed to be sold by the Agency to Burnett Development at fair market value. A nonprofit agency is proposing to acquire the Golden Sands and Sahara parks with Agency subsidies in exchange for restricted rents at both locations. The Agency is considering assisting low income owners of the Eldorado Mobile Home Park to settle a dispute on the owners intentions to convert the park to condominium ownership. Expenditures Not yet available. Plan Obiectives the Proiect Will Address ■ Eliminate Physical, Social, andl Environmental Deficiencies ■ Increase, Improve and Preserve the Community's Supply of Affordable ROSENOW SPEVACEK GROUP,INC. PAGE 36 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Housing Conditions of Blight the Proiect Will Address r Not applicable as an affordable housing project ROSENOW SPEVACEK GROUP, INC. PAGE 37 Five-Year lmplementati®n Plan Merged Redevelopment Project Nos. 1 &.2 Five-Year Budget Tables 2 - 4 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. ROSENOW SPEVACEK GROUP,INC. PAGE 3S FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Cash Flow Forecast Table 2 Merged Redevelopment Project#1 Nonhousing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beginning Available Fund Balance 2,548,000 2,505,071 2,380,588 2,334,926 2,356,982 Revenues Tax Increment Revenue 2,547,200 2,644,000 2,741,600 2,940,800 2,941,600 Interest Income 29,000 28,500 27,100 26,600 26,900 Building/Facilities Rent 1,000 - - - - Loan Proceeds ' 300,000 - - - - Plaza Theater 140,000 142,800 145,700 148,600 151,600 Sales Proceeds 150,000 - - - - Miscellaneous Revenue 150 - - - - Total 3,167,350 2,815,300 2,914,400 3,016,000 3,120,100 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 Various Infrastructure Imps 77,500 - - - - Frances Stevens Art Aced. 35,000 - - - - Downtown Parking 100,000 100,000 100,000 100,000 100,000 Commercial Rehab/Fagade 25,000 25,000 25,000 25,000 25,000 Desert Shadows OPA 200,000 - - - - 437,500 125,000 125,000 125,000 125,000 Total 3,210,279 2,939,784 2,960,062 2,993,944 3,030,553 Ending Fund Balance 2,505,071 2,380,588 2,334,926 2,356,982 2,446,528 ROSENOW SPEVACEK GROUP,INC. PAGE 39 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Cash Flow Forecast Table 3 Merged Redevelopment Project#2 Nonhousing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beqinninq 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 2209 362 21236,539 2,263,037 Ending Fund Balance 1,135,321 '962,014 810,752 688,513 598,475 ROSENOW SPEVACEK GROUP, INC. PAGE40 FIVE-YEAR IMPLEMENTATION PLAN MERGED REDEVELOPMENT PROJECT NOS.1 &2 Cash Flow Forecast Table 4 Merged Redevelopment Projects#1 &#2 Housing Fund 2001-02 2002-03 2003-04 2004-05 2005-06 Beqinninq Available Fund Balance 1,288 736 947,357 1,153,773 (258,267) 204,576 Revenues Tax Increment Revenue 1,065,505 1,102,602 1,140,440 1,179,036 1,218,403 Interest Income 40,000 29,400 35,800 - - - Land Rental 38,000 - - Contrib Non-Govt Sources 15,000 - - - Total 1,158,505 1,132,002 1,176,240 1,179,036 1,218,403 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 CVHC Cottonwood 303,000 - - - - Helmick Rehabilitation - 160,000 - - - Desert Highland Infll - 60,000 - - - Province Group DDA - - 875,000 - - GardenSringsApts - - 1,000,000 - - Heritage Apts 450,000 - - - - 753,000 220,000 1,875,000 Total 1,499,884 925,585 2,588,280 716,193 723,943 Ending Fund Balance 947,357 1,153,773 (258,267) 204,576 699,037 ROSENOW SPEVACEK GROUP,INC. PAGE 41 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 5. ROSENOW SPEVACEK GROUP,INC. PAGE 42 Affordable Housing Projections Table 5 Merged Redevelopment Projects#1 &#2 Time Frame Current 5 Years 10 Years Plan Duration Total Number of Market Rate and Affordable Units to be Developed or Purchased,Both Over the Life of the Plan and the Next 10 Years (H&S Sec.33490(a)(2)(B)(1)) New Construction n/a n/a 1.105 1,105 Substantial Rehabilitation n/a n/a 29 29 Price Restricted n/a n/a Total nla n/a 1,134 1,134 Inclusionary Requirement of Units to be Developed, Both Over the Life of the Plan and the Next 10 Years (H&S Sec.33490(a)(2)(B)(ii)) Low and Moderate We n/a 102 102 Very Low Income n/a n/a 68 68 Total n/a n/a 170 170 Number of Units Which Have Been Developed to Meet the Inclusionary Requirement (H&S Sec.33490(a)(2)(B)(iii)) Low and Moderate Income 39 n/a n/a n/a Very Low Income - n/a n/a n/a Total 39 n/a n/a n/a Number of Units Which Will be Developed by the Agency During the Next 5 Years (H&S Sec.33490(a)(2)(B)(iv)) n/a - n/a n/a Number of Affordable Income Units Which Will be Developed by the Agency During the Next 5 Years (H&S Sec.33490(a)(2)(B)(v)) Low and Moderate Income n/a - n/a n/a Very Low Income nla - n/a n/a Total n/a - n/a n/a 1/"n/a"means not applicable by Redevelopment Law ROSENOW SPEVACEK GROUP,INC. PAGE43 Five-Year Implementation Plan Merged Redevelopment Project Nos. 1 &2 Appendix-Ton-Year Affordable Housing Compliance Plan ROSENOW SPEVACEK GROUP,INC. r Merged Redevelopment Projects Nos. 1 and 2 Amended and Rested Ten-Year Affordable Housing Compliance Plan Adopted October 24, 2001 Community Redevelopment Agency of the City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs, Califomia 92262 � a � �'".C..ss����a�o`T Gi ..._,,,..{ L^^7C, ��_. Rosenow Spevacek Group,Inc. 217 North Main Street, Suite 300 Santa Ana, California 92701 Phone: (714) 541-4585 Fax: (714) 836-1748 E-Mail: info@webrsg.com Amended and Restated Ten-Year Affordable Housing Compliance Plan Merged Redevelopment Project Nos, 1 and 2 'Table of Contents Introduction................................................................................ 1 Legal Requirements for Compliance Plans..................................................1 Contents of the Compliance Plan...................................................................2 Purpose..............................................................................................................3 Methodology and Data Compilation ..............................................................3 Affordable Housing Production Needs.......................................4 Planning Period Production Needs................................................................4 Production Needs over Duration of Redevelopment Plan..........................7 Replacement Housing Production Needs.................................. 9 Rudnick Building Demolition Project.............. ..............................................9 Estimated Housing Program Resources.................................. 10 Proposed Implementation Initiatives ...................................... 12 Future Planning Period Housing Projects................................................. 12 Potential Sites for Future Production Housing.........................................15 Housing Element Consistency................................................. 16 F:\PALMSPRINGS\2NDIMPLEMENTATIONPLAN\HSGPLAN.DOC Amended and Restated Ten-Year Affordable Housing Compliance Plan Merged Redevelopment Project Nos. 1 and 2 Introduction This document is the Ten-Year Affordable Housing Compliance Plan ("Compliance 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 Compliance Plan incorporates a summary of the Agency's affordable housing production activities since fiscal year 1994-95 and presents an affordable housing production plan for the balance of the ten-year planning period (to fiscal year 2003-04). In sum, this Compliance Plan delineates a ten-year affordable housing production requirement of 82 units, of which no less than 33 must be available to households of very low income. Including the affordable housing projects completed and anticipated to be finished by the end of the planning period, the Agency anticipates that 378 affordable units, including 149 very low income units will be created during the planning period. As a result, the Agency anticipates exceeding the required production by 296 units, including 116 very low income units. 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. Legal Requirements for Compliance Plans Pursuant to the requirements of Section 33413(b)(4) and 33490(a)(2) and (3) of the California Community Redevelopment Law, Health and Safety Code Section 33000 et. seq. ("Law"), this Compliance Plan sets forth the Agency's program for ensuring that the appropriate number of very low, low, and moderate income housing units will be produced as a result of new construction or substantial rehabilitation. ROSENOW SPEVACEK GROUP PAGE 1 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS. 1 AND 2 These requirements apply to the all component areas of the Project: Areas, except for the Central _Business,::.District.,area,within Project Area No. :1, because it was °created in 1973, pribr to when the requirements.for production and.replacerent of affocd„able:housing took effect inA97& 'Until the merger in May 2000:.no production or replacement housing was required for the Central Business District area,,, After the; merger, however, Section 33487(e), obligates the .., .. . . ., Agency to.'prospectively.apply the replacement housing requirements in the Central Business District as well. There is still no'requirement fo for:affordable housing production within the Central' Business District area. Contents of the Compliance Plan This Compliance Plan has been developed to accomplish the following goals: • To account for the number' of affordable dwelling units, either constructed or substantially rehabilitated, in the Project Areas since their adoption; ■ To forecast the estimated number of dwelling units to be privately developed or substantially rehabilitated between fiscal years 1994-95 and 2003-04 and over the duration of 1he Redevelopment Plans; • To forecast the estimated number of dwelling units to be developed or substantially rehabilitated by the Agency between fiscal years 1994-95 and 2003-04; ■ To project the availability of Agency revenue for funding affordable housing production; v To identify implementation policies/programs and potential sites for affordable housing development; ■ To establish a timeline for implementing this Compliance Plan to ensure that the requirements of Section 33413 are met during the ten- year period between fiscal years 1994.95 and 2003-04; and ■ To review the consistency of Agency affordable housing goals, objectives, and programs pursuant to the City's Housing Element. ROSENOW SPEVACEK GROUP,INC. PAGE 2 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS. 1 AND 2 Purpose Since 1976, redevelopment agencies have been required to assure that at least 30% of all new or substantially rehabilitated units developed by an agency are available at affordable costs to households of very low, low, or moderate income. Of this 30%, not less than 50% are required to be available at affordable costs to very low-income households. Further, for all units developed in the project area by entities other than an agency, the Law requires that at least 15% of all new or substantially rehabilitated dwelling units within the Project Areas be made available at affordable costs to low or moderate income households. Of these, not less than 40% of the dwelling units are required to be available at affordable costs to very low-income households. These requirements are applicable to housing units as aggregated, and not on a project-by-project basis to each dwelling unit created or substantially rehabilitated unless so required by an agency. In 1994, the Law was amended to require redevelopment agencies to prepare a plan that demonstrated how the agency would achieve the aforementioned affordable housing mandates. Known as housing compliance plans, the Law also requires agencies to update said plans every five years. Methodology and Data Compilation This Compliance Plan takes into account all residential construction or substantial rehabilitation that has occurred within the Project Areas since their adoption in order to determine affordable housing production needs; it accounts for existing residential construction and substantial rehabilitation, and includes projections of new dwelling units that may be constructed or substantially rehabilitated during the ten-year planning period. Historical construction and substantial rehabilitation statistics were provided by the Agency. It should be noted that neither the existing housing stock nor projections for future dwelling units include any units to be developed by the Agency. However, the Agency will continue to cooperate with and provide assistance and incentives to private developers in order to meet affordable housing production needs. ROSENOW SPEVACEK GROUP,INC. PAGE 3 Amended and Restated Ten-Year Affordable Housing Compliance Plan Merged Redevelopment Project Nos. 1 and 2 Afford I able Housing Productio Needs This section describes the Agency's production needs for the planning period (1994-95 through 2003-04,) and over the greater duration of the respective Redevelopment Plans (for Project No. 1,through December 29, 2028;for Project No. 2, through July 19, 2031). Affordable housing production statistics presented here have been aggregated from Project No. 1 and Project No. 2. Section 33413(b)(2)(A)(v) of the Law permits the Agency aggregate affordable housing production needs among'!project areas, if the Agency conducts a public hearing and finds that such aggregation will not exacerbate racial, ethnic, or economic segregation. Following the adoption of this Compliance Plan, the Agency anticipates making such a finding. Planning Period Production Needs According to data supplied by the,City Planning Department, a total of 73 dwelling units have been either constructed or substantially rehabilitated in the Project Areas during the current planning period.' Between June 2001 and the end of the planning period in June 2004, another 476 units are anticipated to be developed in :the Project Areas, bringing the total projected planning period housing production to 549 units. All 549 units produced during the planning period were (and are anticipated to be) developed by persons or entities other than the Agency. The breakdown of the planning period housing production activity is shown in Table 1 below: Based on building permits issued between January,1994 and June?_001. ROSENOW SPEVACEK GROUP PAGE AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS. 1 AND 2 Planning Period Housing Production Table 1 Merged Redevelopment Projects#1 &#2 Project Area Units Produced Very Low Total All Other Grand Affordable Total Project Area#1 1994-95 through 2000-01 - 39 32 71 2001-02 through 2003-04 149 256 70 326 Total Project Area#1 149 295 102 397 Project Area#2 1994-95 through 2000-01 - - 2 2 2001-02 through 2003-04 150 150 Total Project Area#2 - - 152 152 Grand Total 1994-95through 2000-01 - 39 34 73 2001-02 through 2003-04 149 256 220 476 Total 149 295 254 549 Note: No units developed by Redevelopment Agency Section 33413(b) of the Law requires that not less than 82 (15%) of the 549 units produced during the planning period be affordable to low and moderate income households. In addition, at least 33 (40%) of these 82 units must be affordable to very low income households. These affordable housing production requirements must be met during the planning period, which ends after fiscal year 2003-04. To satisfy the Agency's production needs, units that are either developed or substantially rehabilitated must be feature covenants that extend to the duration of the respective Redevelopment Plans. Units may be constructed inside or outside the Project Areas, but units provided outside a project area count on a 2-for-1 basis. The Agency may also purchase 30-year affordability covenants on multifamily units. Upon the completion of several housing programs involving new construction, substantial rehabilitation, provision of units outside the Project Areas, and affordability covenant acquisition, the Agency anticipates that 378 affordable units will be produced for the planning period. This would result in a surplus of 296 affordable housing units (more than the 82 units required), which could be applied to meet additional affordable housing production needs over the duration of the Redevelopment Plans. Of the 378 units produced, 149 are anticipated to be restricted for very low income households; the 149 very low income units projected exceed the ROSENOW SPEVACEK GROUP,INC. PAGE 5 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS. 1 AND 2 planning period's estimated need I(33 units) by 116 units. The additional 116 very low income units would be available to meet the affordable housing needs of the Agency over the duration of the Redevelopment Plan. Table 2 presents an inventory of the affordable housing projects that are anticipated to fulfill the Agency's ten-year planning period production need. Inventory of Planning Period Affordable Housing Projects Table 2 Merged Redevelopment Projects#1 &#2 Project Affordable Units Produced Very Low Total Affordable New Construction Palos Verdes Villas(1994) - 19 Desert Highland (1998) - 12 CVHC Cotttonwood/Chuckwalla(2001-02) - 9 Desert Highland Single Family Infi,ll(2002-05) - 25 DAP-Special Needs/Transitional:(2003-04) 85 85 Province Group Project 90(2003-64) 54 108 SUBTOTAL 139 258 Substantial Rehabilitation Miscellaneous Locations(1994 tol2001) - 8 Neighborhood Rvtlz-SFR Rehab'(2001-02) 10 14 Helmick Multifamily Rehab PA 9b(2002-03) - 15 SUBTOTAL 10 37 2-for-1 Production(Outside ProjectAreas) Units Constructed between 1994 and 2001 16 SUBTOTAL - 16 Affordability Covenants Purchased Heritage Apartments (Price Restricted) _ - 67 SUBTOTAL - 67 Grand Total 149 378 Note: No units developed by Redevelopment Agency The inventory of housing projects presented in Table 2 includes several projects that the Agency anticipates will be completed during the current planning period. These j projects, including the CVHC Cottonwood/Chuckwalla project, the Desert. Highland single family infill project, the DAP Special Needs and Transitional Housing Project, the Province Group Project, substantial rehabilitation of 14 single family homes, and the Helmick (Palm Springs Apartments) project are described in more detail later in this Compliance Plan. ROSENOW SPEVACEK GROUP,INC. PAGE 6 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS.1 AND 2 Production Needs over Duration of Redevelopment Plan As mentioned earlier, the Agency expects to have a surplus of affordable housing units produced during the planning period; these surplus units are expected to be available to meet the Agency's production needs over the entire duration of the Redevelopment Plans. Table 3 presents estimates of the cumulative affordable housing production needs over the duration of both Redevelopment Plans. The estimates in Table 3 include planning period forecasts contained in Table 1, statistics on pre-1994 housing production based on data from the Agency and Planning Department, and forecasts of additional buildout within the Project Areas. Cumulative Housing Production Estimates _ Table 3 Merged Redevelopment Projects#1 &#2 Project Area Units Produced Very Low Total All Other Grand Affordable Total Project Area#1 Planning Period (1994-95 to 2003.04) 149 295 102 397 Pre-1994 Production 2 7 97 104 Remainder of Redevelopment Plan 458 458 Total Project Area#1 151 302 657 959' Project Area#2 Planning Period(1994-95 to 2003-04) - - 152 152 Pre-1994 Production - - - - Remainder of Redevelopment Plan 40 160 200 Total Project Area#2 - 40 312 352 Grand Total Planning Period (1994-95 to 2003-04) 149 295 254 549 Pre-1994 Production 2 7 97 104 Remainder of Redevelopment Plan 40 618 658 Total 151 342 969 1,311 Note: No units developed by Redevelopment Agency Based on these forecasts, a total of 1,311 units would be built or substantially rehabilitated in the Project Areas over the duration of the Redevelopment Plans. Of the 1,311 units projected, at least 197 units (15%) would need to be affordable to low and moderate income households, and 79 (40% of the 197 units) would need to be affordable to very low income households. ROSENOW SPEVACEK GROUP,INC. PAGE 7 I AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS.1 AND 2 According to Agency staff several affordable units have been produced prior to the planning period through earlier housing program initiatives. Table 4 presents an inventory of',the total number of affordable housing projects completed, including those during) and prior to the planning period. Inventory of All Affordable Housing Projects Completed Table 4 Merged Redevelopment Projects#1,&#2 Project Affordable Units Produced Very Low Total Affordable Planning Period Activity(See Table 2) New Construction 139 258 Substantial Rehabilitation 10 37 2-for-1 Production(Outside Project Areas) - 16 Affordability Covenants Purchased _ 67 SUBTOTAL 149 378 Pre-1994 Activity New Construction 2 7 Substantial Rehabilitation - - 2-for-1 Production(Outside Project Areas) 72 140 Affordability Covenants Purchased _ SUBTOTAL 74 147 Post Planning Period Activity New Construction - 40 Substantial Rehabilitation - - 2-for-1 Production(Outside Project Areas) - 51 Affordability Covenants Purchased _ SUBTOTAL - 91 Grand Totals New Construction 141 305 Substantial Rehabilitation 10 37 2-for-1 Production(Outside Project Areas) 72 207 Affordability Covenants Purchased _ 67 Total 223 616 Note: No units developed by Redevelopmenl Agency As shown in Table 4, including the 378 affordable units anticipated to be created during the current planning period, a total of 616 affordable units are projected to be produced during the Plans' duration. These 616 units include 223 very low income units. Based on these projections, the Agency anticipates that it will exceed the 197 units required for the duration of the Redevelopment Plans. ROSENOW SPEVACEK GROUP,INC. PAGE 8 Amended and Restated Ten-Year Affordable Housing Compliance Plan Merged Redevelopment Project Nos. 1 and 2 ProductionReplacement Housing The Law requires that whenever dwelling units housing low and moderate income households are destroyed as part of an Agency project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated. These units must provide at least the same number of bedrooms destroyed, and 100% of the replacement unitS2 must be affordable to the same income categories (i.e. very low, low, and moderate) as those removed. The Agency receives a full credit for replacement units created inside or outside the Project Areas. Rudnick Building Demolition Project In 1995, the Agency relocated the 2 occupied units of a 4 unit housing project in the Project Area No. 1 (Central Business District), also known as the Rudnick Building. In September 2000, the building was demolished. The Agency has replaced both occupied units with 2, one-bedroom very low income units, According to Agency staff, no additional units are expected to be destroyed or removed as a part of an Agency project during the planning period. ]Prior to January 1,2002,75%of all replacement units must be of the same income category as those displaced. ROSENOW SPEVACEK GROUP PAGE I Amended and Restated Tern-bear Affordable Housing Compliance Plan Merged Redevelopment,Project Nos. 1 and 2 . . rces One of the Agency's primary sources of revenues for housing program implementation is the annual 201/o housing set-aside deposits. The Law requires that not less than 20% of all tax increment revenue allocated to the Agency must be used to increase, improve, and preserve the community's supply of housing available., at affordable housing cost, to persons and families of very low, low, and moderate incomes. As set forth by Section 33333.4', of the Law, it is stated policy of the California State Legislature that, °.:.it shall be the policy of each agency to expend, over the duration of the redevelopment plan, the moneys in the low and moderate income housing fund to assist housing for persons of low and very low income in at feast the same proportion as the total number of housing units needed for those income groups which are not being provided by other governmental programs bears to the total number of units needed for persons of moderate, low, and very low income within the community." Table 5 presents projected housing fund revenues that may be available for housing production activities over the balance of the current planning period. The forecast of revenues'is based on a conservative 2% growth rate in Project Area secured assessed values. Available funds are net of current planning commitments and other housing fund expenditures. In total, the Agency could accumulate approximately $2,848,000 to fund housing programs by fiscal year 2003-04. ROSENOW SPEVACEK GROUP � PAGE10 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS.1 AND 2 Cash Flow Forecast Table 5 Merged Redevelopment Projects#1 &#2 2001-02 2002-03 2003-04 Totals Beginning Available Fund Balance 1,288,736 947,357 1,153,773 Revenues Tax Increment Revenue 1,065,505 1,102,602 1,140,440 3,308,546 Interest Income 40,000 29,400 35,800 105,200 Land Rental 38,000 38,000 Contrib Non-Govt Sources 15,000 15,000 Total 1,158,505 1,132 002 1,176,240 3,466,746 Expenditures Debt Service 507,024 460,985 463,780 1,431,789 Capital Project Debt Service - - - - Personnel Costs 95,512 97,400 99,300 292,212 Materials, Supplies, &Services 51,860 52,900 54,000 158,760 Special Charges 92,488 94,300 96,200 282,988 Subtotal 746,884 705,585 713,280 2,165,749 Project Costs CVHC Cottonwood 303,000 - - 303,000 Helmick Rehabilitation - 160,000 - 160,000 Desert Highland Infill - 60,000 - 60,000 Province Group DDA - - 875,000 875,000 Garden Srings Ants - - 1,000,000 1,000,000 Heritage Apts 450,000 - - 450,000 753,000 220,000 1,875,000 2,848,000 Total 1,499,884 925,585 2,588,280 5,013,749 Ending Fund Balance 947,357 1,153,773 (258,267) ROSENOW SPEVACEK GROUP,INC. PAGE 11 Amended and Restated Ten Year Affordable Housing Compliance Plan Merged Redevelopment Project Nos. 1 and 2 sed Implementation Initiatives anon ion�initiatives 1 1 , Though the Agency anticipates exceeding its housing production needs for the planning period, additional affordable housing projects will be undertaken in order to meet long'; term affordable housing needs for the Project Areas and the community as a whole. These projects are described below. Future Planning Period Housing Projects The following projects are anticipated to be initiated during the planning period. In total, completion of these projects could result in the provision of 256 affordable units, including 149'very low income units. Neighborhood Revitalization-Single Family Rehabilitation ■ Agency is providing financial assistance to substantially rehabilitate 14 single family residences in various locations in Project Area No. 1. ■ Affordability covenants would be recorded on all 14 units (10 very low, 3 low, and 1 moderate) ■ Rehabilitation should be completed during fiscal year 2001-02 Coachella Valley Housing Corporation Cottonwood/Chuckwalla OPA ■ Agency has entered into a owner participation agreement with Coachella Valley Housing Corporation to develop 9 single family homes in the Cottonwood/Chuckwalla neighborhood ■ Project is fully entitled and under construction; should be completed during fiscal year 2001-02. ■ Owner participation agreement has been amended by Agency to place covenants on individual units. ROSENOW SPEVACEK GROUP PAGE 12 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS.1 AND 2 Helmick Multifamily Rehabilitation Project ■ Agency is proposing to substantially rehabilitate 4 fourplexes (16 units total) at 555 & 585 Chuckwalla in Citywide Area No. 9 (Project Area No. 1), also known as the Palm Springs Apartments. ■ Fifteen of the units would be restricted for low income households. ■ Project should be completed in fiscal year 2002-03. Desert Highland Single Family Infill Programs ■ The Agency is considering a program to facilitate the development of vacant and cleared infill lots in the Desert Highland neighborhood. ■ Staff anticipates that as many as 25 low and moderate income units could be constructed through this program between 2002 and 2005. DAP-Special Needs and Transitional Housing Project ■ DAP is proposing to construct a total of 85 very low income units, consisting of 25 units for special need households, and 60 transitional housing units. ■ Staff anticipates this project would be completed in 2003-04. Province Group DDA ■ 108 unit multifamily development proposed in Citywide Area No. 9 (Project Area No. 1) ■ All 108 units would be affordable to very low income households ■ Contingent on obtaining 4% tax credit financing, staff estimates this project could be completed in fiscal year 2003-04. Coyote Run Expansion(Outside Project Areas) ■ Working with the Coachella Valley Housing Corporation, the Agency is considering developing an additional 60 unit phase of this project on an adjacent 6.25 acre parcel. ■ Approximately 60 low income units could be developed ■ Project is located outside Project Areas, and could yield as many as 30 units for the Agency's affordable housing production needs in the future. ROSENOW SPEVACEK GROUP,INC. PAGE 13 I AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS.1 AND 2 Gloriette Apartments(Outside Project Areas) ■ The Agency has received a request: for financing assistance for a mixed income project that would result in 20% of the units (42 units) set aside for low income renters. Mobile Home Park Redevelopment ■ Agency is actively pursuing redevelopment of several mobile home parks in the community, including Sunrise Village, Golden Sands, Sahara, and Eldorado. ■ A nonprofit organization has proposed to acquire the Sunrise Village park from the Agency in exchange for a 19 acre parcel and covenants on the mobile home units. The 19 acre parcel is proposed to be sold by the Agency to Burnett Development at fair market value. ■ A nonprofit agency is proposing to acquire the Golden Sands and Sahara parks with Agency subsidies in exchange for restricted rents at both locations. ■ The Agency is considering assisting low income owners of the Eldorado Mobile Home Park to settle a dispute on the owners intentions to convert the park to condominium ownership. ■ No further specifics are available on the number of affordable units or timing of this project at this time. Garden Springs Apartments ■ Pursuant to a DDA executed in June 2001, the Agency and a developer are pursuing tax credit financing to construct an affordable apartment project ■ No further specifics are available on the number of affordable units or timing of this project at this time. ROSENOW SPEVACEK GROUP,INC. PAGE 14 AMENDED AND RESTATED TEN-YEAR AFFORDABLE HOUSING COMPLIANCE PLAN MERGED REDEVELOPMENT PROJECTS NOS. 1 AND 2 Potential Sites for Future Production Housing The majority of the Project Areas are built out. However, the Agency will continue to work with private and nonprofit developers to find additional sites suitable for cost efficient development and rehabilitation of affordable housing. ROSENOW SPEVACEK GROUP,INC. PAGE 15 Amended and Restated Teri-bear Affordable Housing Compliance Plan Merged Redevelopment Project Nos. 1 and 2 Housing Element Consistency Because this Compliance Plan focuses on providing housing for lower income households who are generally the most difficult segment of the community for whom to provide housing, it is clearly consistent with the Housing Element's goal to provide housing for all economic groups within the Project Areas. Both this Compliance Plan and the Housing Element state there is a definite need to assure an adequate supply of housing for the lower income segments of the community. A major focal point of the goals, policies, and objectives of the Housing Element is to provide housing for all economic segments of the Project Areas, especially lower income families. Because the major goal of this Compliance Plan is also to provide housing for these lower income households, and the proposed plans and programs for improving the supply of affordable housing in the Project Areas presented in this Compliance Plan are similar to plans and policies of the Housing Element, there is clearly consistency between the Compliance Plan and the Housing Element. ROSENOW SPEVACEK GROUP PAGE 16