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HomeMy WebLinkAboutSTAFF REPORT JUNE 2006 8A Part7NUN. Cammuniry n:vaopm:mcammi,eion RcisE A/iAll Petaluma Community Development Commission Petaluma, California TABLE OF CONTENTS Resolution Adopting the Five -Year Implementation Plan SECTION I: NON -HOUSING ACTIVITIES 1. Introduction A. Background of AB 1290 2 B. Implementation Plan Requirement 2 II. The Petaluma Community Development Commission A. Background of the Commission 3 III. Discussion of Blight Conditions A. Blighting Conditions Defined 3 B. Central Business District Project Area 4 1. Blighting Conditions in the Amended CBD Project Area 5 2. Blighting Factors in the Existing Area 6 3. Blighting Factors in the Added Area S C. Petaluma Community Development Project Area 9 1. Physical Blight Survey of2000 10 IV. Implementation Plan Goals & Objectives 11 V. Programs, Potential Projects & Estimated Casts 12 A. Program Expenditures & Elimination of Blight 12 1. Debt Repayment 12 2. Proposed Major Projects 13 a. Community Development Project Area 13 b. Central Business District Project Area 15 VI. Five -Year Revenue & Expenditure Forecast 19 SECTION II: AFFORDABLE HOUSING ACTIVITIES A. Implemenlaton Plan Requirements: Housing Activities 31 B. Major Statutory Provisions of CRL for Affordable Housing 31 C. Affordable (lousing Productian Obligations: CBD 37 D. Affordable Housing Productinn Obligations: PCD 39 E. Goals, Objectives, and Programs 42 F. Housing Set -Aside Fund 43 G. Appendix 48 N.I. aC.m airy a:vdormmr Commusion Poulums,Calibrrh Petaluma Community Development Commission Petaluma, California SECTION I Five -Year Implementation Plan (FY 2901-02 through FY'_006-09) INTRODUCTION A. Background of All 1290 On October 6, 1993, Governor Wilson signed Assembly Bill 1290 (Isenberg) into law. AB 1290, the Community Redevelopment Law Reform Act of 1993, took effect January 1, 1994 and implemented die most significant changes in do, Community Redevelopment Low in many years. One of the provisions of the bill is the requirement that each agency adopt a five-year implementation Plan, which provides documentation for the link between the elimination of blight and the proposed actions of the redevelopment agency. AB 1290 requires each redevelopment agency to adopt, after a public hearing, an Implementation Plan on or before December 31, 1994. Thereafter, this Implementation Plan shall be revised and adopted every five years. In addition, at least once during the five- year period, a public hearing an the Implementation Plan is required to be held. B. Implementation Plan Requirement According to Health & Safety Code Section 33490(a), the Implementation Plan must describe specific goals and objectives for the project areas, the specific programs, including potential projects to be carried out in the project areas, the estimated expenditures to be made during the period covered by the plan and an explanation of how the goals, objectives, programs, and expenditures will assist in the alleviation of blight, The Implementation Plan must also describe how the agency will implement its obligations to replace, increase, improve, preserve and maintain low and moderate -income housing. ra.wm. amme•in o:.aovmmi eum 4, Pcalumq alit... 11 e, and 415MI II. THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION A. Background of the Commission The Petaluma Community Development Commission (PCDC) was activated on December 1, 1975 by the City of Petaluma Ordinance No 1201 N.C.S. The Commission exercises all of the powers authorized under the Constitution and Health and Safety Code of the State of California (Section 33000, at seq.). These powers include, but are not limited to the authority to acquire, administer, develop, lease or sell bonds or other forms of taxable ornon-taxable securities. All powers of the PCDC are vested in its seven members, which under the provisions of the ordinance are the members of the City Council. The Mayor serves ns the Chair and the Vice Mayor as Vice Chair. Staffing of the PCDC is provided by members of the City staff. The PCDC administers two project areas within the City of Petaluma: • Canual Business District Project Area and • Petaluma Community Development Project Area. III. DISCUSSION OF BLIGHT CONDITIONS A. Blighting Conditions Defined: The following sections of the Community Redevelopment Law define the types of conditions and characteristics found in a "blighted' area. Sections 33030 and 33031: (a) It is found and declared that there exist in many communities blighted areas which constitute physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of such communities and of the state." - (b) A blighted area is one that contains both of the following: I. An area that is predominately urbanized and is an area in which the combination of conditions set forth in Section 33031 is so prevalent and so substantial that it constinoes a serimts pltysicnl and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. 2. An areas that is characterized by either of the following: (A) One or more of the following physical conditions that cause blight: 1.) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building cudc viula[iuns, dilapidation, and Pauluma Cemmuniry nevelopmem Cemmisicn P<mlum;ceia.m R ,iv 415101 deterioration, defective design or physical construction, faulty or inadequate utilities, or other similar factors. 2.) 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. 3.) Adjacent or nearby uses that are incompatible with each other and which prevent the economic development of those parcels or other portions ofthe project area. 4.) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. (B) One or more of the following economic conditions that cause blight: 1.) Depreciated or stagnant property values or impaired investments, including but not necessarily limited to, those properties containing hazardous wastes that require the ase of agency authority. 2.) 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. 3.) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, and banks and other lending institutions. 4.) Residential overcrowding or an excess of burs, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare, 5.) A high crime rate that constitutes a serious threat to the public safety and welfare. (c) A blighted area may also be one that contains the conditions described in (b) above and is in addition, characterized by the existence of inadequate public improvements, parking facilities, or utilities. B. Central Business District Amended Project Area The Central Business District Project Area (the "CBD" project) was established in September 1976 (Ordinance No. 1221 N.C.S.). The CBD District Project Area consists of approximately 98 acres and encompasses the majority of the historic downtown core from D Street to Washington Street and from Lakeville Street to Liberty and 5"' Streets. The area is bisected by the Petaluma River and by Ptltluma C..m Mry DI:I,.rnt Commission Net.., C,umm. R vu:d 415MI Petaluma Boulevard. The Petaluma River Turning Basin is the most prominent geographic feature. The City of Petaluma and the Petaluma Community Development Commission (PCDC) are proposing to amend the Central Business District (CBD) Redevelopment Plan to add territory (Added Area) to the CBD Project Area (Existing Area) and extend various time and financial limits of the Existing CBD Redevelopment Plan. The proposed Plan Amendment would add approximately 127 acres to the Existing Area, creating a 225-acre Amended Area. Figure 1.2 in the Report to Council shows the Amended Project Area (the combination of the Existing Area and Added Area) boundaries. The Redevelopment Plan Amendment will provide the Agency with needed additional legal and financial resources to alleviate blighting conditions in the Amended Project Area, implement the Specific Plan, and promote economic development in the Existing Area. The Amendment is proposed to enhance the Agency's ability to eliminate blight in the Amended Area in a more effective manner than is possible under the Redevelopment Plan in place at this time. The project area contains an impressive collection of turn -of -doe -century commercial buildings devoted primarily to retail and office uses. Approximately seventy of these buildings are listed as in need of seismic strengthening. There is telatively lisle vaeurit property in the project area, IInWeVer, considerable under utilized land in the vicinity of the railroad depot has potential for significant development. The project area's economic activity focuses an its retail, restaurant, and visitor serving uses but includes two contemporary neighborhood shopping centers. 1. Blighting Factors Affecting the Entire Amended CBD Project Area Historical influences on land use and development, and earthquake and flood hazards have contributed to the physical and economic blighting conditions in the Amended Area. Furthermore, buildings that are potentially unsafe and hazardom exist throughout the Amended Area. • Historic development patterns along the Petaluma River have contributed to physical and economic blighting conditions in the Amended Area, including haphazard parcelization, properties that are difficult to economically develop, an irregular street pattern, and periodic flooding which accounts for the extensive amount of undeveloped and underutilized land. • Earthquake hazards contribute to adverse physical and economic conditions. These conditions are particularly prevalent in the Existing Area where a large number ofumeinforced immunity buildings (both seismically retrofitted and non -retrofitted) are present. Many of these buildings contribute greatly to Petaluma's ftm�m. comm��iy o.,aoon,•m commi.ao„ Pealuma, Califonia Pevistl il5bl historic and architectural character and are worthy of seismic retrofitting and preservation. Flooding in Petaluma has long been a problem for both residents and businesses. Recent damaging floods have taken place in 1982, 1986, 1997, and 1998. Significant flooding has occurred in low lying areas along the Petaluma River in both the Existing Area and Added Area B. Typically such flooding occurs during periods of heavy rainfall when high tides an the river restrict drainage. Several types of buildings in both the Existing Area and the Added Area are likely to be unsafe and linardaus in the event of strong earthquake. Most of Petaluma's unreinforced masonry buildings are concentrated in the Existing Area. A few unreinfarced masonry buildings are present in the Added Area. 2. Blighting Factors in the Existing Area Blighting Findinee at Timc of Plan Ado p1bir, The Report to Council for the CBD Redevelopment Plan, adopted in 1976, frond that the Prnject Area was a blighted area, the redevelopment of which was necessary to effectuate the public purposes declared in the CRL. This finding was based on the following conditions that characterized the Project Area: (i) The existence of buildings and structures used or intended to be used for living, commercial, industrial or other purposes, which are unfit or unsafe to occupy for such purpose due to ace, obsolescence, deterioration and dilapidation; (it) The existence of inadequate streets, open spaces and utilities; (iii) In some part of the project area, a growing lack of proper utilization of areas, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare; (iv) In other parts of the project atca, a ¢ductiun of Proper utlimdun of the arcs, resulting in further deterioration; (v) The decline of the central business district as a viable and competitive retail commercial center, (vi) The lack of adequate off-street parking and poor traffic circulation in the project area; (viii) lindermilization of the Petaluma River as a recreation and transportation resource. These conditions still exist throughout most of the Project Area. Pantos. Cammunl Drvd,,rs, Cammfuion Pon... Glb.W R.iudil5N1 Blighting Conditions that Continue in tile Existing Area The Existing Area has been improved substantially by public and private actions since the adoption of the Redevelopment Plan in September 1976. However, field reconnaissance surveys conducted during 2000 reveal that all of the blighting conditions descrihed in the original Report to Council still remain to some extent in the Existing Area. In summary, these conditions include the following. Adverse Physical Conditions • Nan -retrofitted unreinforced masonry buildings that could prove to he unsafe and hazardous in the event of a major earthquake. • Buildings on land that, because ofadverse sails conditions, could be subject to amplified shaking, liquefaction, or greater damage during a serious earthquake. • Deteriorated and, in a few cases, dilapidated and/or abandoned commercial buildings. • Large underutilized properties that are blighted by abandoned railroad spur tracks. • Substandard, unpaved, or badly deteriorated pavement surfaces. • Streets with missing, heaved, deteriorated, subsided, or substandard curbs and gutters. • Areas without adequate storm drains. • Properties with identified leaking underground storage tanks that Contribute to soils and groundwater contamination. Adverse Economic Conditions • Obsolete commercial buildings (including imposing bank structures and retail structures of irregular configuration) that cannot economically accommodate modem retail uses. • Obsolete and deteriorated ,mcha iscs that are not readily adaptable to other economic uses. • Nan -retrofitted umeinforced masonry buildings that could be uneconomic to rehabilitae at current market reins. • Vacant and possibly abandoned railroad and industrial buildings. • Large parcels of vacant and underutilized land. • Adverse soils conditions that increase the cost of new construction and rehabilitation. • The presence of blighting physical conditions that discourage private investment. reum,n• U=unla, oe elormml Cn n,ne,mn Pe.W. , Uhre.m sevuel 415M1 • Substandard and inadequate infrastructure that hinders new development and negatively impacts the value of existing development. • Potential soils and groundwater contamination from commercial and industrial uses and informal and/or illegal dumping. 3. Blighting Factors in the Added Area Observed Adverse Physical Conditions Several field reconnaissance surveys, including a comprehensive Building Conditions Survey, were conducted to identify adverse physical conditions in the Added Area (Added Areas A and B). "Chase surveys were conducted both in an automobile and on foot. Conditions observed during these surveys include the following: • Umeinforced masonry buildings (brick and hollow tile) that could prove to be unsafe and hazardous in the event of a major earthquake. • Older residential and commercial structures that, because of their can and construction type, could also prove to be unsafe and hazmdous in the event of a major earthquake. • Buildings on land that, because of adverse soils conditions, could be subject to amplified shaking, liquefaction, or greater damage during a serious earthquake. • Commercial and residential buildings with apparent structural problems (including cracked walls, sagging walls, sagging roof lines and settlement). • Aging, obsolete, damaged, and deteriorated corrugated metal warehouse and mill buildings. • .Aging, deteriorated, and in P few cases, dilapidated residential buildings. • Properties with idenulied leaking underground storage ranks that contribute to soils and groundwater contamination. • Substandard, unpaved, or badly deteriorated pavement surfaces that blight adjoining properties. • Streets with missing, heaved, deteriorated, subsided, or substandard curbs and guners. • Streets that are potentially hazardous or are otherwise adversely affected by unused or abandoned railroad spur trucks. • Areas without adequate smren drains. • A riverside with deteriorated pilings, rotting bulkheads, and potential contamination from dumping. RUN. eommun, Mr,Ib mva Comminion Pemlmru.c.11remie Revised 415MI Blighting Economic Conditions in the Added Area Economic blighting conditions are present in the proposed Petaluma CBD Added Area. The findings confirm that economic blight within the boundaries of the Added Area is substantial and pervasive. The Added Area, like the contiguous Existing Area, has not participated in the strong economic growth experienced by the City overall. Of the five categories of economic blight identified in the CRL, two are present in the proposed Added Area, and will persist into the future unless mitigated through redevelopment action: • Depreciated/stagnant property values or impaired investments, including stagnant or declining property values, stagnant or declining sales tax receipts and the presence of hazardous materials, and • Vacant or underutilized land. A more detailed description of the physical and economic blighting conditions affecting the Existing and Added Areas can be found in the Report to Council for the Petaluma CBD Redevelopment Plan Amendment. 2. Conclusion While substantial progress has been made in the Central Business District Project Area over the last ten years, significant challenges for economic development and blight elimination remain. The proposed Five Year Implementation Plan will continue the progress made in the Existing Area since the inception of the Project in 1976, present the initial Five -Plan for the Added Areas. B. Petaluma Community Development Project Area Established in July 1988 through the adoption of Ordinance No. 1725 N.C.S., the Petaluma Community Development Project Area includes approximately 2,265 acres generally along both sides of U.S. Highway 101 from Old Redwood Highway to Washington Street, the Southwest side of U.S. Highway 101 from Washington Street to Lakeville Strect, and both sides of U.S. Highway 101 from Lakeville Street to Petaluma Boulevard South and East of U.S. Highway 101 to the "Haystack Landing" area. The Project Area also includes approximately five miles of the Petaluma River and Willow Brook Creek of which a majority parallels U.S. Highway 101, Portions of major traffic arteries including Petaluma Boulevard North and South, North McDowell, Old Redwood Highway, East Washington Street, Lakeville Street and Lakeville Highway are also situated in the Project Area. Also included in the Project Area me several major business parks and industrial uses as well as five major retail center: Washington Square, Petaluma Plaza nd,N. Cvmmuni0 Oa:lapmcm Gmmueivn Pvalmlu, c4e.ia aeriue 41510 North and South, the Petaluma Premium Factory Outlets, and the Petaluma Auto Plaza. The area includes many public and institutional uses. There is a significant amount of vacant and/or underutilized land within the Project Area that provides development potential. 1. Physical Blight Survey of2000: A field survey of the Petaluma Community Development Project Area was performed in February 2000 revealing the following: a.) Approximately seventy buildings, spread between bath Project Areas, have been identified as needing seismic retrofitting. (Section 33030, condition (b)(1)) (Section 33031, conditions (a)(1) and (b)(1)) b.) Approximately fifty parcels within the Project Area suffer from economic dislocation, deterioration, or disuse because of reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical or economic burden on the community and has a prevalence of depreciated values, impaired investments, and emnnevic maladjustment. (Section 33030, condition (b)(1)) (Section 33031, condition (0)(1), (a)(2), (b)(1), (b)(2)) c.) Approximately five lane miles of road in the Project Area have inadequate public improvements, public facilities, and utilities which cannot be remedied by private or governmental action, or both, without redevelopment. (Section 33030, conditions (b)(1) and (c)) (Section 33031, conditions (a)(2), (a)(3), and (b)(2)) d.) The Petaluma River has had at least five major flood occurrences in the last twenty-five years, causinu millions afdollars in property lass. Consequently, properties currently developed in the flood plain suffer from economic dislocation, deterioration, or disuse because of 1) the laying out of lots in disregard of the contours and topography or physical characteristics of the ground and surrounding conditions, 2) the existence of inadequate public improvements and public facilities, and 3) a prevalence of depreciated values, impaired investments, and economic maladjustment which cannot reasonably be reversed or eliminated by private enterprise or government, or both, with, redevalnpmem. The Paymn Reach Flnnd Manngement pmjec currently under construction to alleviate this condition and is be,..s financed, in pam through tax increment from the Project Area. (Section 33030, conditions (b)(1) and (c)) (Section 33031, conditions (a)(1), (a)(2), and (b)(1)) 10 Nclune community c..raai,n Nei.., cmifomla Revi,ee 415101 e,) There are two very large commercial buildings in the Project Area that are blighted due to see, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses which cannot reasonably be reversed or eliminated by private enterprise acting alone. (Section 33031, Factor "e") 2. Conclusion While substantial progress has been made in the Petaluma Community Development Project Area over the last ten years, significant challenges for economic development and blight elimination remain. The proposed Five -Year Implementation Plan will continue the progress in redevelopment made since the inception of the Project area in 1988. IV. IMPLEMENTATION PLAN GOALS & OBJECTIVES Section 33490 (a)(1) of the Health & Safety Code states that the Implementation Plan shall contain the specific goals and objectives of the Agency for the Project Areas. The Petaluma Community Development Commission requires that all work performed by the Commission must further the objectives of the City of Petaluma General Plan and its elements, all relevant specific plans comply with state law. The Commission's goals and objectives for redevelopment of the Project Areas over the five years covered by this Implementation Plan are as follows: A. The elimination of blighting influences and correction of environmental deficiencies in the Project Areas, in particular structural deterioration, underutilized commercial land, unmanageable parcelization patterns, and inadequate and deteriorated public improvements and facilities including curbs, gutters, paving, sidewalk,, drninage, lighting and landscaping. B. Improved pedestrian, bicycle, and vehicular circulation in the Project Areas; C. The provision of an environment conducive to social and economic growth; and D. The expansion and/or improvement of the community's supply i f housing for low and moderate income persons. N WN.a Community nevdepmm� Cvmmiaion Revieetl il3Nl V. PROGRAMS, POTENTIAL PROJECTS & ESTIMATED EXPENDITURES A. Program Expenditures & the Elimination of Blight: The Health and Safely Code specifies that the Implementation Plan link Agency expenditures to the alleviation of identified blighting conditions. The specific programs, including potential projects, to be undertaken by the Commission within the Project Areas aver the next five years and the estimated expenditures therefore are set forth below: I. Debt Repayment The Commission will continue to expend funds to pay debt service from FY 2001-02 through FY 2006-07 as follows: CBD Project Area • 2000B TAB (Refinanced 1984 TAB): 5727,000 • 2005A TAB (New Debt to Be Incurred): 5800,000 • Assessment District 14 Credits: $116.000 Subtotal CBD Debt: 51,643,000 PCD Proiact Area • 1992A TAB: $2,612,000 • 2000A TAB: 56,654,000 • 2004A TAB (New Debt to Be Incurred): 54,902,000 • Assessment District 19 & Benson Note: 53,967,000 • Assessmcm District 17 Subsidies: S 150.000 Subtotal PCD Debt: SIA=85,000 These are more particularly described in the Revenue & Expenditure Forecast section of this Implementation Plan. Debt Service for each of the years covered by this implementation plan will be as follows: Debt Service FY 2001-02 through FY 2006-O7* (Both Project Areas) FY 2001-02 FY 2002-03 FY 2003-04 FY 3110A-0> FY 2005-06 FY 2006-07 g2395.13> 53.g30,gq1 52,63N.A93 53.g9L'6] g4346,T_6 g3.g34�ep `rNme: Debt Service figures do not include 5116,000 in AD 14 credits. Blight Alleviation: Projects funded from debt service alleviate blighting conditions by improving social and environmental conditions, vehicular Pcaluma Cammuniry nevcloPmem Cvmmutien P®Iuma, Glifomia flcvi,M LS/al circulation and safety; providing employment and strengthening the economic base; and upgrading public improvements. 2. Proposed Major Projects: Community Development Project Area a. Unreinforced Masonry Program: 50.330 Million Blight Alleviation: The project will restore many of Petaluma's unreinforced masonry buildings thereby preserving the stock of alder buildings which gives the City Its unique character. the project corrects structural deficiencies in aging buildings thereby eliminating blighting influences. h. Street Reconstruction, Traffic Circulation & Parking Improvements: 5113 Million Blight Alleviation: The pmject will widen intersections and bridges, reconstruct roads and make parking improvements, increasing the safety and capacity of intersections, improving vehicular, pedestrian, and bicycle circulation in the Project Arc,. c. "Mainstreet" Improvements: S9.0 Million Blight Alleviation: The project will address the impacts on public infrastructure impacted by the implementation of the following future development • Central Petaluma Specific Plan, • The Hub/Fairgrounds, • Bicycle Plan, and • Related Transportation Improvements. The project will make infrastructure improvements inside the project area to eliminate deteriorated public improvements and facilities including curbs, gutters, paving, sidewalks, drainage, lighting and landscaping. d. River Enhancement Plan Improvements: S1.5Million Blight .Alleviation: Pedestrian/Bicycle trails along the Petaluma River will provide residents and visitors easy access to downtown shopping and social activities, creating an environment conducive to social and economic growth. The project includes construction of paved path along the river from the Lynch Creek to the Gast Washington Bridge. Pnamma commwiy oarcmpmat Cnmmuamn Pmlamr, ulira.m TUrhN 6/5101 e. Tree Planting & Establishment: 5.350 Blight Alleviation: The project will involve the planting of street trees within the PCD Project Area, providing an environment conducive to social and economic growth. f. Gateway Capital Improvements: SI.0 Million Blight Alleviation: The project will beautify various gateway entrances to the City through a combination of landscape and hardscapc capital improvements, as cited In the General Plan in order to provide an environment conducive to social and economic growth. g. Economic Development Promotion: $2.580MIllion Blight Alleviation: The project will promote tourism to the City by supporting the Petaluma Visitor's Bureau marketing efforts — 51.8 million; establishing a business attraction & retention program by providing economic data and related information to the business community -- 5600,000; and completing studies for the implementation of the Central Petaluma Specific Plan — $180,000. These programs are being implemented in order to provide an environment conducive to social and economic ermvth. h. LOK Petaluma Marina Hotel OPA: 5.750 Blight Alleviation: The Agency entered into an Owner Participation Agreement for a tea room full -service Sheraton Hotel in the Petaluma Marina. Assistance to the project includes a loan for offsite public improvements to be -repaid to the PCDC through a deferred purticipntiun puymem. Without financial assistwiuc, the economically viable use of the marina site was substantially hindered due to limited access and parking. Additionally, the vacant site was difficult to develop for urban use and without redevelopment assistance constituted a serious physical and economic burden on the community that could not be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. i. Turning Basin Dredging: 5.200Million Blight Alleviation: The project will dredue the turning basin in between the years when the US Army Corps of Engineer dredge_= the mining basin downtown and the Petaluma River. Without the support of die Agency, the turning basin would reduce the viability of river - related industry and tourism boating. Peuluma Cammeniry @vdopmenl CammBiion Nnluma, Ca0famu Itcviud 415101 j. Debt Service: $18.285 Million Blight Alleviation: The project pays the debt service on the following debt, allowing the Agency to undertake its projects: • 1992A TAB: 52,612,000 • 2000A TAB: $62654,000 • 2004A TAB (New Debt to Be Incurred): $4,902,000 • Assessment District 19 & Benson Note: 53,967,000 • Assessment District 17 Subsidies: S 150,000 Subtotal PCD Debt: $18 _95,000 IL Project Administration & Overhead: 52.445 Million Blight Alleviation: The project provides administrative support to the PCDC and provides for the planning, oversight, and implementation of all agency projects and programs. The administration of the Agency insures that the goals and objectives of the Ageneyare met. Subtotal PCD Project Area Project Cost: 547.740 Million Central Business District Project Area a. Unreinforced Masonry Program: $0,355 Million Blight Alleviation: The project will restore many ofPetaluma's unneinforced masonry buildings thereby preserving the stock of older buildings which gives the City its unique character. The project corrects structural deficiencies in aging buildings thereby eliminating blighting influences. h. PDA Downtown Economic Development: 50.420 Million Blight Alleviation: The project funds the work plan of the Petaluma Downtown Association which undertakes economic development through business retention and enhancement programs. These programs are being implemented in order to provide an environment conducive to social and economic growth. C. Special Projects: 5.155 Million Blight Alleviation: The project will provide funding for an enhanced downtown foot patrol provided by a private security firm giving 15 Peelunu Community poxlopnlm Commission Peulum; Gll(oma Ikvisd41SA1 people shopping in the area an added sense of security during holidays ($90,000). Another provides for the continual rehabilitation and renewal of downtown sidewalks (562,000). A third project provides employment to youth during the summers related to business development and enhancement ($3,000). These projects are being implemented in order to provide an environment conducive to social and economic growth. d. Parking Garage Capital Improvements: 52.325 Million The project will begin in FY 2001-02 with construction to improve the security of the Keller St. parking structure (5325,000). Additional funds are set aside for public participation in new parking facilities (52.0 million). e. Keller St. Parking Garage Security & Rehab: S.870 Million Blight Alleviation: The project provides funding for monthly facility rehabilitation and contract security personnel to patrol the Keller St. parking garage. Rehabilitation and parking security would initially be only partially offset by parking fees. Parking revenue is estimated to fully offset the cost of securing and rehabilitating the structure by FY 2006-07. f. "Mainstreet^Improvements: 55.0 Million Blight Alleviation: The project will improve public infrastructure in the downtown care of the project area. The improvements will eliminate deteriorated public improvements and facilities including curbs, gutters, paving, sidewalks, drainage, lighting and landscaping as follows: • Sidewalks - 52,400,000 • Streetlights 5 800,000 • Street Overlays 51,000,000 • Curb & Gutter S 350,000 • Mae & Supervision S 450.00n Subtotal 55,000,000 g. Implementation of Central Petaluma Specific Plan $8.600 Million Blight Alleviation: The implementation of the Central Petaluma Specific Plan will provide an environment conducive to social and economic growth. Specifically, the implementation will involve numernus public capital improvements such as street paving. sidewalks, curbs, gutters, storm drainage, lighting, water and sewer lines. The implementation of the Specific Plan improves pedestrian, bicycle and vehicular circulation and access to the Project Area, 15 Paalume Communiry nnelapmem Camunesion Rcva�dRa wd , Calif mia 91]NI The plan also envisions high density housing linked to public transportation. The project may also include the renovation of an aging railroad trestle and the construction of a floating walkway used for pedestrian access at Water Street. h. River Enhancement Plan Itapravcmcnis: 55.868 Million Blight Alleviation: Pedestrian/Bicycle trails along the Petaluma River will provide residents and visitors easy access to downtown shopping and social activities, creating an environment conducive to social and economic growth. The project includes construction of a paved path along the river in two segments from the Bast Washington to the D Street Bridge and from D Street to the end of Foundry Warf as follows: • Downtown Segment: $3,868,000 • Warehouse Segment: 52.000.000 Subtotal 55,868,000 Polnnm Plazn IlMroom OPA: 5.050 Million Blight Alleviation: According to an agreement for use of private property with the owners of 123 Petaluma Boulevard, Petaluma, signed by the Agency in 1996, the Agency agreed to pay for the ongoing use of public restrooms on private property. This was in lieu of constructing costly public restrooms downtown where space was limited. The project was undertaken in order to eliminate blighting influences and correct a deficiency in public improvements. j. Storefront Improvement Loan Program: 5.600MBlion Blight Alleviation: The project provides low interest loans to owners of properties located downtown. The loans are for exterior repair, rehabilitation and painting. The intention of the program is to eliminate blighting influences. Ic Downtown Foot Patrol Security: S .150 Million Blight Alleviation: The project provides funding for an enhanced downtown foot patrol provided by the Police Department giving people shopping in the area an added sense of security during weekly shopping (590,000). Pdaiuma Cmnmuniy peuxlopm:nt Communion Rmoma Cdifemia &vial 1/Slot 1. Debt Service: 51.643 Million Blight Alleviation: The project pays the debt service on the following debt, allowing the Agency to undertake its projects: • 2000B TAB: $727,000 • 2005A TAB (New Debt to Be Incurred): $800,000 • Assessment District 14 Credits: $116.000 Subtotal PCD Debt: $1,643,000 an. Project Administration & Overhead: S .825 Million Blight Alleviation: The project provides administrative support to the PCDC and provides for the planning, oversight, and implementation of all agency projects and programs. The administration of the Agency insures that the goals and objectives of the Agency are met. Sub -total CBD Project Area Project Cost: 526.861 Million Grand Total 5 Year Project Cost: 576.601 Million (Both Project Areas) Pnalumv eommun, uevelopmmu Commil,an Pnalumy califumla neviutl4/3/01 Part VI Five -Year Revenue & Expenditure Forecast FY 2001-02 through FY 2006-07 Petulumn Community Development Project Area & Central Business District Project Area 19 M..AL..,I.Ess OISTNICT PROOF, AREA REVENUES I EIRENOITORES FY)001d3 PROPOSED BUDGET E. FIVE-YEAR FORECAST REVO�uC9N0 [)RIIYIIIIIEv0Ypl161F[iMEA Rp1Ax Kinul Apl of IN.- ry It— pJ.al '0V°eeY IIMmalel piu3eY Pgnna prryeeN PRaiel a yaea VflIUE��� N9 n nAnm b PnT+� pw FreeA.— G�3TenS �alM.eeePla iOMI NMuuu AND THAHSEI s Yl 11 ally IN I — IN � a4e;nm�cW 13 11xmlblNue Pgetll V+^°<IYPoW ]I INNIIE;EI1VE11 I...SANAVAN E RIAVJ x m® ® D. SANO Ines ljm3 IF. 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Fall )dpm 4mad rnl]rs l.]I ]]aElp ;pmael r]mnml xaM.ro My, nFG�� we..em�iex, 4 4:m.� 14LT.¢cl o p o3pElnEo rpxoe Av...vu ! 'i�13.'d._1 rl'4plp - 4 IM NNYUIIJEIIIITIIMIp IpANl...... v ]E6dl .,dl.)v1 .U1.)•L v,Mlm3 B.IA16n I;lel..d 1}Mp.Mv Iyplprgyl �M1ma w[m.va pnaMgrtnlGmnnum PETALUMA COMMUNITY DEVELOPMENT COMMISSION FIVE-YEAR IMPLEMENTATION PLAN FOR HOUSING ACITIVITIES SECTION II AFFORDABLE HOUSING ACTIVITIES TABLE OF CONTENTS A. IMPLEMENTATION PLAN REQUIREMENTS: HOUSING ACTIVITIES B. MAJOR STATUTORY PROVISIONS OF CAL FOR AFFORDABLE HOUSING 1. HOUSING PRODUCTION REQUIREMENTS 2. REPLACEMENT HOUSING REQUIREMENTS 3. HOUSING FUND REQUIREMENTS C. AFFORDABLE HOUSING PRODUCTION OBLIGATIONS CBD 1. HISTORICAL 2. PROJECTED 3. AFFORDABLE HOUSING PRODUCTION 4. REPLACEMENT D. AFFORDABLE HOUSING PRODUCTION OBLIGATIONS PCD I. HISTORICAL 2. PROJECTED 3. AFFORDABLE HOUSING PRODUCTION 4. REPLACEMENT E GOALS, OBJECTIVES, AND PROGRAMS 1. HOUSING ACTIVITY GOALS 2. PROGRAMS F. HOUSING SET -ASIDE FUND 1. HISTORICAL STATUS 2. DEPOSITS 3. PROPOSED ACTIVITIES AND ANNUAL PRODUCTION GOALS G. APPENDIX 1. MAP OF CITY OF PETALUMAIPCDC-ASSISTED PROJECTS 2. LIST OF CITY OF PETALUMA/PCDC- ASSISTED PROJECTS AND PROGRAMS 3. REGIONAL HOUSING NEEDS DETERMINATION CHART: ASSOCIATION OF BAY AREA GOVERNMENTS 29 LIST OF HOUSING TABLES TABLE 1 REGIONAL HOUSING NEEDS TABLE 1 AFFORDABLE HOUSING COSTS TABLE 3 HOUSING PRODUCTION SUMMARY (CBD) TABLE 4 HOUSING PRODUCTION SUMMARY (PCD) TABLE 5 FUND: EXCESS SURPLUS TABLE 6 FUND: SET -ASIDE BALANCE TABLE 7 UNITS PRODUCED AFFORDABLE HOUSING ACTIVITIES A. Implementation Plan Requirements: Housing Activities The housing portion of the Implementation Plan is required to set forth specific goals and objectives in enough detail to measure performance. The Plan must include the following affordable housing planning components: • The number of housing units projected to be rehabilitated, price -restricted, assisted or destroyed. • The Project Area's Affordable I -Lousing Production Plan (AR 313 Plan), as described below. • Identification of proposed locations for replacement housing, which the Commission will be required to produce pursuant to Section 33413, if a planned project will result in the destruction of existing affordable housing. • An explanation of how the goals, objectives, programs, and expenditures set forth in the Implementation Plan will implement the affordable housing requirements of Community Redevelopment Law ("CAL"), including a housing program for each of the five years of the Implementation Plan. • The amount available in the Low and Moderate Income Housing Rand, r_srimares of deposits into the Housing Fund during the next five years and the Commission's plans for using annual deposits to the Housing Fund, B. Major Statutory Provisions of CRL for Affordable Housing The major statutoy rffordablc housing requirements imposed on redevelopment agencies by CRL may be categorized generally as: • Housine Production Reou'rement- Specified minimum percentages of new or rehabilitated housing units in a project area are to be made available at a specified affordable housing cost. • Replacemeor Hausine Requirement Agencies must replace housing units removed from the housing stock as a result of redevelopment activities. • Housing Fund Reau'rement- Redevelopment agencies are required to expend specified percentages of tax increment revenue for provision of affordable housing. These three requirements are described in greater detail as follows: 31 Housing Production Requirement and Housing Production Plan Project areas created by redevelopment plans adopted on or after January 1, 1976, and territory newly added to project areas by amendments adopted on or after January 1, 1976, must meet an affordable housing inclusionary production obligation (the "Housing Production Requirement"). CRL requires that 30 percent of all housing developed or substantially rehabilitated by a Commission must be available at affordable housing cost to low and moderate -income households. Of those units, 50 percent must be affordable to very low-income households. The 50 percent very low-income requirement translates to 15 percent of the total units develnped or rehabilitated by the Commission (50 percent of 30 percent - 15 percent). This requirement applies only to units developed directly by a Commission and does not apply to units developed by housing developers pursuant to agreements with a Commission. When housing is developed or substantially rehabilitated in a project area by public or private entities other than the Commission, including entities receiving Commission assistance, 15 percent of the rnml number of units must be affordable to low and moderate income households. Of those units, 40 percent must be affordable to very low-income households. The 40 percent very low-income requirement translates to 6 percent of the units developed and substantially rehabilicamd in the Project Area (40 percent of 15 percent = 6 percent). The CRL requires agencies to report on historical production and adopt a plan for each project area showing how the Commission intends to meets its Housing Production Requirement (the "Housing Production Plan") for the following time periods; • Historical production from the adoption of the Plan through 2000 • Annual production over the next five years (2001 to 2006) • Production over the next ten years (2001 to 2011) • Production through the life of the Plan (to 2031) The plan must include estimates of the number of new or rehabilitated residential units to be developed within the project area and the number of units for very low income households and low and moderate income households which will be developed in order to meet the requirements of Section 33413. Additionally, the plan must include estimates of the number of units the Commission itself will develop during the time period of the plan, including the number of very low, low and moderate -income units. The plan is to be reviewed every five years in conjunction with updating the housing element. Both Petaluma redevelopment plans were adopted since January 1, 1976 and are subject to the CRL housing production requirement; however only the Community Development Project Area (the large area) has housing within its Project Area boundaries. The Central Business District will produce housing within the scope of the Central Petaluma Specific Plan planning process. The Housing Production Plan for the Commission is set forth in Section C. 32 2. Replacement Housing Requirement When residential units housing low and moderate -income persons ate destroyed or taken our of the law and moderate -income market as part of a redevelopment project, a Commission must replace those units with new or newly rehabilitated low and moderate. income units. At least thirty days prior to acquiring property or adopting an agreement that will lead to the destruction or removal of taw and moderate -income housing units, a Commission must adopt by resolution a replacement housing plan. The replacement housing plan generally must include: • The general location of housing to be rehabilitated, developed, or constructed to meet the particular Replacement Housing Requirement. • An adequate means of financing such rehabilitation, development, or construction. • A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained. • The number of dwelling units housing persons and families of low or moderate income planned for construction or rehabilitation. • The timetable for meeting the plan's relocation, rehabilitation, and replacement housing objectives, The Replacement Housing Requirement applies to project areas established by redevelopment plans (or areas added by amendments) adopted on or after January 1, 1976, and merged project areas regardless of the date of establishment of the individual project areas subsequently merged. Replacement units may be located anywhere within the territorial Jurisdiction of the Commission (H&S Code 334131a1), A Commission may construct replacement housing itself or cause that housing to be developed through agreements with housing developers. The basic income and affordability standards for replacement housing are the same as those for use of Housing Fund money. The units must be available at an affordable huusiug cost w huueehulds of low and moderate incunm. In addition, for dwelling units destroyed or removed after September 1, 1989, CRL requires that 75 percent of the replacement units be available at an affordable housing cast to the same income level of hotocholds (,cry low, low, or moderate income) as the households displaced from the unim removed or destroyed (H&S Code 33413[aJ)! Replacement housing must remain affordable the longest feasible time, but Oct less than the period of time that the land use controls of the redevelopment plan remain in effect (H&S Code 33913[a]). The affordability controls on such units must he made enforceable by recorded covenants or restrictions. 33 In the City of Petaluma, Commission actions have resulted in the removal of housing units in the Community Development Project Area in the Payran flood project area. All relocation requirements were met. The Commission does not plan any activity, which would result in the loss of hauling units in the next five years in either of the Project Areas. 3. Housing Fund Requirement The CAL requires the Commission to set aside In a separate segregated Low and Moderate Income Housing Fund (the "Housing Fund") at least 20 percent of all tax increment revenue generated from its project areas for the purpose of increasing, improving and preserving the community's supply of law and moderate income housing. In the City of Petaluma, both project areas deposit 20 percent of their tax increment revenue to the Housing Set -Aside Fund. The Commission deposits from both project areas to the Housing Fund are described in section G below. a. Housing Fund Targeting Under the CRL, Housing Fund moneys must be targeted to specific income levels. Agencies are specifically required to expend their Housing Funds to assist very law, low and moderate -income households, generally defined as: Very Low Income Incomes at or below 50 percent of area median income, adjusted for family size Low Income Incomes between 51 percent and ou percent of area median income, adjusted far family sioa Moderate Income Incomes between 81 percent and 100 percent of area median income, adjusted for ftmil size The Petaluma 2000-2001 median household income schedule, delineating specific dollar values attached to these income categories, is shown on the following page. This schedule is updated annually by the Department of Housing and Urban Development. 34 PETALUMA FY 2000-2001 MEDIAN HOUSEHOLD INCOME SCHEDULE HOUSEHOLD SIZE 1 2 3 4 5 6 LFOVf I LOW ( MODERNI-E 30% i 50% 6MI. 70% 807/ 90% MEDIAN 120% 12,200 1 20,350 24,375 28,440 I 32,550 38,720 40,625 56,160 13,950 23,250 29,850 34.825 1 37,200 44,275 46,500 59,700 15,700 26,150 31,370 36,600 I 41,850 49,930 52,300 62,750 17.450 29.050 34.860 40,670 46.500 52,290 59J60 64,200 18,000 31,350 37,620 43,890 l 50,200 56,430 62,700 ! 75,240 20,200 33,700 40,440 47,180 53,900 60,660 67,400 90,880 Tids median income sell dine is hased an the FY 2000-2001 mediun household income for Pmaluma as ddermined by the United Stacs Departmer t of Iiuusiog and Urban Dwdopmcat('HUD"). Household income is adjusted'far family ibc in accordance with HIM standard adjustment fanars. The current median income became eRvtive on 319100, For questions eooeeming income limits or local housing iaformazlan, d1 the Hausing Administrator at (707) 77BA301. Y�aiv{wunn In December 2000. the Association of Bay Area Governments (ABAG) distributed its Regional Housing Needs Determination or "fair share" allocation far 2000,2006. The table immediately following shows that "fair share" allocation and the targeting objective currently applicable to the City of Petaluma. Most of the units will be provided with PCDC participation. Housing Table 1: Regional Housing Needs Affordable Housing Need (Regional Lair Share) by Income Category Very Low Income tub IB Ea7Inm, IR 10.8 Modemte Income 312 27.3 Above Modemte Income Toral 1,144 100 percent Source: .ABAG Aegional Housing Needr Dearmination As Table I indicates, to meet its targeting requirements, the Commission will need to make available at least 18 percent of units assisted with Housing Fund moneys for very law income households and at least IM percent for Inw inrome. households. The remaining 71.2 percent of units assisted by means of the Housing Fund may be affordable to any of the three income categories. b. Affordable Housing Cost S Duration of Affordability Housing assisted with Housing Fund moneys must be "available at an affordable housing cost." For housing assisted by Housing Funds, the following affordable housing cost definitions apply: Hous re Table 2: Affordable Housing Cost Income Level Rental Housing Ownershin Housing Very Low Income 30 percent of 50 percent 30 percent of 50 percent Low Income 30 percent of 60 percent 30 percent of 7o percent Moderate Income 30 percent of l ID percent 35 percent of I10 percent The CRL also requires the placement and recordation of affordability controls on any new or substantially rehabilitated housing assisted with Housing Fund moneys. In the case of new or substantially rehabilitated rental housing, conuals must be placed on Lhe assistud housing units requiring them to remain affordable for the longest feasible time but not less than 30 years. For owner -occupied housing, the units must remain affordable for the longest feveible Lime, but tun, lees than 30 ye , although a shorter duration is permitted if the Commission recoups in Housing Fund investment when an assisted owner -occupied unit is sold at a nomaffordable price or to a non -qualifying buyer. According to statutory definition, the `Iongcst feasible time" requirement includes, but is not limited to, o period of unlimited duration. 36 C. Affordable Housing Production (Inclusionary) Obligations, Central Business District Project Area (CBD) This section constitutes the Housing Production Plan of the Petaluma Community Development Commission Implementation Plan for the Central Business District Project Area. The Commission expects to meet its legal housing production obligations under Community Redevelopment Law. The first part describes historical housing production within the Project Area from the adoption of the Redevelopment Plan in July 1976 through 2000. The second part discusses future housing production within the Project Area as follows: • Annual production goals for the next five years (2001-2006) • Projected production over the next ten-year period (2001-2011) • Projected production through the life of the Project (2031) The third and fourth parts discuss affordable housing production in the Project Area and the Commission's strategy for meeting its inclueionary obligation. The housing production numbers used in this report represent the best available information to dare PCDC has utilized Community Development Department and Commission records to prepare these projections. 1. Historical Housing Production in Project Area a. New Construction There has been no new construction of multi or single-family dwelling units in the Central Business District Project Area. b. Substantial Rehabilitation AB 1290 requires the Commission to count substantially rehabilitated multifamily rental dwelling units (with three or more units) or substantially rehabilitated one or two dwelling units having received Commission assistance in its production totals. In the Downtown/CBD Project Area, drawing from records from the Building Division, an estimated 20 housing units have been substantially rehabilitated by private individuals wirlruut aM dkiliry mxriuionn ill the Project Aura. The Commission does utilize its funds to support the rehabilitation efforts through the nonprofit Chri_tmae in April Petaluma. Through Christman in April, hamea of lo,v- income elders and persons with a disability are rehabbed, but to date no homes in the CBD have been rehabilitated. The Commission has a grant/loan program available to owners of commercial and residential ur,sinfotoed masonry (URM) buildings, targemd for use in the CBD Project Area. The Commission's 20 percent Sec -Aside Fund will be, where appropriate, used to renofir residential units to be occupied by very low, low and moderate income households. 37