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
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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.
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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
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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
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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
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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.
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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.
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• 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.
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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
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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))
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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.
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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
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`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
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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.
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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.
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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
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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
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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.
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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.
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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.
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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.
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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