Presented by: MMASC “Redevelopment 101” A.C. Lazzaretto & Associates October 4, 2001.

Presented by:Presented by:

MMASCMMASC“Redevelopment 101”“Redevelopment 101”

A.C. Lazzaretto & Associates

www.aclazz.comwww.aclazz.comOctober 4, 2001October 4, 2001

Background & IntroductionBackground & Introduction

Presented By:Presented By:

Andy LazzarettoAndy Lazzaretto

of 40

Redevelopment BackgroundRedevelopment Background

History of RedevelopmentHistory of Redevelopment

• Section 33000 of Health & Safety Section 33000 of Health & Safety CodeCode

Purpose of RedevelopmentPurpose of Redevelopment

• Eliminate Substandard ConditionsEliminate Substandard Conditions

of 40

Redevelopment AgencyRedevelopment Agency

Separate Legal EntitySeparate Legal Entity City Council Acts as Agency BoardCity Council Acts as Agency Board

• Conflict of Interest StatementsConflict of Interest Statements

of 40

Redevelopment Agency PowersRedevelopment Agency Powers

Clear, Grade, & Prepare Acquired LandClear, Grade, & Prepare Acquired Land Construct Public ImprovementsConstruct Public Improvements Encourage Public & Private Encourage Public & Private

ImprovementsImprovements Acquire Land for Public or Private Acquire Land for Public or Private

ReuseReuse• Negotiated PurchaseNegotiated Purchase• Eminent DomainEminent Domain

of 40

Eminent DomainEminent Domain

Used as a Last OptionUsed as a Last Option 4/5 Agency Vote Required4/5 Agency Vote Required Fair Market Value Must be PaidFair Market Value Must be Paid

• Determined by Outside AppraiserDetermined by Outside Appraiser Court is an Option if No Agreement Can Court is an Option if No Agreement Can

Be ReachedBe Reached Relocation BenefitsRelocation Benefits

of 40

Relocation BenefitsRelocation Benefits

Assistance in Finding a New LocationAssistance in Finding a New Location Payments to Help Cover Moving CostsPayments to Help Cover Moving Costs

• Includes Notifying Existing CustomersIncludes Notifying Existing Customers• Includes Printing New Letterhead, Includes Printing New Letterhead,

Business Cards, etc.Business Cards, etc. Differential Payments for Increased RentDifferential Payments for Increased Rent Payments for Fixtures & EquipmentPayments for Fixtures & Equipment ““Goodwill” EligibilityGoodwill” Eligibility

Property Value GrowthProperty Value Growth

$129,734,369

$186,539,108

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

Base Year Year 45

Increase in Value

Base Value

Estimated Annual Tax IncrementEstimated Annual Tax Increment

$0

$1

$2

$3

$4

$5

$6

Millio ns

1 6 11 16 21 26 31 36 41 46

Base Taxes Housing Tax Agencies Redevelopment Agency

Total Estimated Tax IncrementTotal Estimated Tax Increment

$42.31

$12.29$7.35

$0$5

$10$15$20$25$30$35$40$45

Millions

Redevelopment Agency Taxing Agencies Housing

of 40

Affordable HousingAffordable Housing

20% Set-Aside20% Set-Aside Increase, Improve, or Preserve Increase, Improve, or Preserve

Affordable Housing SupplyAffordable Housing Supply Duration of AffordabilityDuration of Affordability

• Owner-OccupiedOwner-Occupied

• RentalRental Replacement HousingReplacement Housing

Adoption ProcessAdoption Process


Dominic LazzarettoDominic Lazzaretto

of 40

Planning Commission Sets Planning Commission Sets BoundariesBoundaries

Survey AreaSurvey Area Can Include Non-contiguous SubareasCan Include Non-contiguous Subareas Blight StudyBlight Study Preliminary PlanPreliminary Plan Notification of Residents, Property Owners, and Notification of Residents, Property Owners, and

BusinessesBusinesses• Offered ConsultationOffered Consultation• Information AvailableInformation Available• Notified of Public HearingNotified of Public Hearing

Project Area CommitteeProject Area Committee

of 40

Preliminary Report/Report to Preliminary Report/Report to CouncilCouncil

Reasons for Selecting Project AreaReasons for Selecting Project Area Description of ConditionsDescription of Conditions Urbanization RequirementUrbanization Requirement Financing MethodsFinancing Methods Specific Projects Proposed by AgencySpecific Projects Proposed by Agency Description of How Actions will Description of How Actions will

Eliminate Blighting ConditionsEliminate Blighting Conditions

of 40

Preliminary Report/Report to Preliminary Report/Report to CouncilCouncil (cont’d) (cont’d)

County Fiscal Officer’s Report & County Fiscal Officer’s Report & AnalysisAnalysis

Implementation PlanImplementation Plan

• Specifically Outlines First Five Years Specifically Outlines First Five Years of Planof Plan

Neighborhood Impact ReportNeighborhood Impact Report

of 40

Redevelopment PlanRedevelopment Plan

Sets Goals & ObjectivesSets Goals & Objectives Establishes Proposed ActivitiesEstablishes Proposed Activities Time LimitsTime Limits

• 12 Years for Eminent Domain12 Years for Eminent Domain• 20 Years to Incur Debt20 Years to Incur Debt• 30 Years for Active Life30 Years for Active Life• 45 Years to Repay Debt45 Years to Repay Debt

Conformity to General Plan & Zoning Conformity to General Plan & Zoning RegulationsRegulations

of 40

Joint Public HearingJoint Public Hearing

Notice Published in Local PaperNotice Published in Local Paper MailingsMailings Evidence for & Against AdoptionEvidence for & Against Adoption All Objections Must be HeardAll Objections Must be Heard

• Responses, in Writing, Before Plan Responses, in Writing, Before Plan Can be AdoptedCan be Adopted

of 40

Ordinance Adopting Ordinance Adopting Redevelopment PlanRedevelopment Plan

Findings of AgencyFindings of Agency Certification of Environmental Impact Certification of Environmental Impact

ReportReport Two ReadingsTwo Readings Effective 30 Days After Second Effective 30 Days After Second

ReadingReading

Specifics of BlightSpecifics of Blight


Dominic LazzarettoDominic Lazzaretto

of 40

Types of BlightTypes of Blight

Physical DeteriorationPhysical Deterioration Economic DeficienciesEconomic Deficiencies

of 40

Physical DeteriorationPhysical Deterioration

Buildings in Which it is Unsafe or Unhealthful Buildings in Which it is Unsafe or Unhealthful for Persons to Live & Workfor Persons to Live & Work

Factors that Prevent, or Substantially Hinder, Factors that Prevent, or Substantially Hinder, the Economically Viable Use or Capacity of the Economically Viable Use or Capacity of Buildings or LotsBuildings or Lots

Incompatible Uses Which Prevent the Incompatible Uses Which Prevent the Economic Development of Those Parcels or Economic Development of Those Parcels or Other Portions of the Project AreaOther Portions of the Project Area

of 40

Physical Deterioration Physical Deterioration (cont’d)(cont’d)

Subdivided Lots of Irregular Form & Subdivided Lots of Irregular Form & Shape & Inadequate Size for Proper Shape & Inadequate Size for Proper Usefulness & Development that are in Usefulness & Development that are in Multiple OwnershipMultiple Ownership

Inadequate Public ImprovementsInadequate Public Improvements

of 40

Economic DeficienciesEconomic Deficiencies

Depreciated or Stagnant Property ValuesDepreciated or Stagnant Property Values Abnormally High Business VacanciesAbnormally High Business Vacancies Abnormally Low Lease RatesAbnormally Low Lease Rates High Turnover RatesHigh Turnover Rates Excessive Vacant LotsExcessive Vacant Lots A Lack of Necessary Commercial Facilities A Lack of Necessary Commercial Facilities

Normally Found in NeighborhoodsNormally Found in Neighborhoods

of 40

Economic Deficiencies (cont’d)Economic Deficiencies (cont’d)

An Excess of Bars, Liquor Stores or An Excess of Bars, Liquor Stores or Businesses that Cater to Adults that Businesses that Cater to Adults that Has Led to Problems of Public Safety Has Led to Problems of Public Safety and Welfareand Welfare

High Crime RateHigh Crime Rate Properties That Contain Hazardous Properties That Contain Hazardous

Wastes That Require the Use of Wastes That Require the Use of Agency AuthorityAgency Authority

Vacancies, Age, Multiple Ownership, Dilapidation

Vacancies, Hazardous Waste, Deterioration, Deferred Maintenance

Dilapidation, Graffiti, Vacancies, Hazardous Waste, Irregular Shape (Grading)

Dilapidation, Deterioration, Code Violations, Deferred Maintenance

Code Violations, Public Improvements, Parking

Dilapidation, Deterioration, Code Violations, Deferred Maintenance

Hazardous Waste, Multiple Ownership, Vacancies, Poor Design

Safety, Public Improvements

Dilapidation, Deterioration, Code Violations, Public Improvements (1994)

Dilapidation, Deterioration, Code Violations, Public Improvements (1996)

Incompatible Uses, Age, Design, Parking

Obsolescence, Design Issues

Redevelopment Project Redevelopment Project ExamplesExamples


Andy LazzarettoAndy Lazzaretto

of 40

Examples of Typical Examples of Typical Redevelopment ProjectsRedevelopment Projects

Santa Fe Springs Golden SpringsSanta Fe Springs Golden Springs Beautiful Downtown BurbankBeautiful Downtown Burbank La Habra Imperial HighwayLa Habra Imperial Highway La Mirada Affordable HousingLa Mirada Affordable Housing Fresno Grizzlies Baseball StadiumFresno Grizzlies Baseball Stadium

Presented by: MMASC “Redevelopment 101” A.C. Lazzaretto & Associates October 4, 2001.

Documents

Transcript of Presented by: MMASC “Redevelopment 101” A.C. Lazzaretto & Associates October 4, 2001.