HomeMy WebLinkAboutRes 243 Project Area No. 3 INTEROFFICE MEMORANDUM
CITY OF PALM DESERT
DATE: JANUARY 24 , 1991
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT
AGENCY
FROM: EXECUTIVE DIRECTOR, REDEVELOPMENT AGENCY
SUBJECT: APPROVING THE PRELIMINARY REPORT, DRAFT REDEVELOPMENT
PLAN, DRAFT METHOD OF RELOCATION, AND DRAFT RULES
GOVERNING PARTICIPATION AND RE-ENTRY PREFERENCES FOR
PROPERTY OWNERS, OPERATORS OF BUSINESSES, OR TENANTS IN
PROJECT AREA NO. 3; AND AUTHORIZING CERTAIN
TRANSMITTALS
Recommendation:
That the Agency Board approve Resolution No. 243 approving the
Preliminary Report, Draft Redevelopment Plan, Draft Method of
Relocation, and Draft Rules Governing Participation and Re-entry
Preferences for Property Owners, Operators of Businesses, or
Tenants in Project Area No. 3 ; and authorizing certain
transmittals.
Background:
The California Community Redevelopment Law (the "Law") requires
that the Redevelopment Agency prepare and distribute a
Preliminary Report which contains (1) the reasons for selecting
the project area; (2) a description of conditions which exist in
the project area; (3) a preliminary assessment of the method of
financing the redevelopment project; (4) a description of the
specific projects to be pursued by the agency; and (5) a
description of how the projects will improve the conditions in
the project area. The Law also requires the Agency to distribute
the Draft Environmental Impact Report and the Draft Redevelopment
Plan to all affected taxing agencies.
The primary purpose of the Preliminary Report is to provide
taxing agencies with information to allow them to analyze any
fiscal impact the Redevelopment Project may cause to their
entity.
The attached Preliminary Report discusses those items required by
the Law. It identifies the conditions in Project Area No. 3 that
necessitate the use of redevelopment to remedy, including older
structures requiring rehabilitation, lack of and deficient
infrastructure improvements, inadequate off-street parking, and
the lack of adequate public recreation facilities and open space.
palmdst`,prrpta
Approximately $ 104 , 056 , 000 of potential project costs have been
identified in the Preliminary Report . This estimate includes the
cost of public improvements , and other potential costs that can
be identified ; it does not include the 20 percent housing set-
aside fund requirements . The list of projects incorporated into
the Preliminary Report and Draft Redevelopment Plan is
preliminary . As an example , a project currently not listed is
the People Mover System . This project is currently being
analyzed as to whether it will benefit the project area and to
what extent . Additional projects are also contemplated when
Staff meets with residents and landowners in the area .
The final Redevelopment Plan does not require Agency approval at
this time . The Agency/City Council is scheduled to consider the
final Redevelopment Plan after receiving input from the public
and taxing agencies . Agency approval to transmit the Draft
Redevelopment Plan will allow these bodies to proceed with their
review .
The Draft EIR is being prepared by Cotton/Beland/Associates
pursuant to the California Environmental Quality Act ( CEQA ) . It
reviews the potential environmental impacts resulting from
implementation of the Redevelopment Plan . The attached
resolution authorizes transmittal of the Draft EIR , upon its
completion , to the affected taxing agencies , the State
Clearinghouse and all other environmental review agencies for the
mandated review period .
Although the proposed Draft Redevelopment Plan contemplates no
activities which will result in displacement , either temporary or
permanent , the Law requires the Agency to prepare a method of
relocation of persons and families who are displaced from Project
Area No . 3 . The attached resolution authorizes Agency staff to
make the Draft Method of Relocation available for inspection by
interested persons .
The Law also requires the Agency to provide for participation in
the redevelopment of the Project Area by persons who own real
property or are engaged in business in the Project Area . The
attached resolution authorizes the Agency staff to make the Draft
Rules Governing Participation and Re-entry Preferences for
Property Owners , Owners of Businesses , and Tenants in Project
Area No . 3 available for inspection by interested persons .
The Law also requires the Agency to provide for participation in
the redevelopment of the Project Area by persons who own real
property or are engaged in business in the Project Area . The
attached resolution authorizes the Agency staff to make the Draft
Rules Governing Participation and Re-entry Preferences for
Property Owners , Owners of Businesses , and Tenants in Project
Area No . 3 available for inspection by interested persons .
0)9627
Carlos L . Ortega
Executive Director
Attachments
RESOLUTION N0.
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
APPROVING THE PRELIMINARY REPORT, DRAFT REDEVELOPMENT
PLAN , DRAFT METHOD OF RELOCATION , AND DRAFT RULES
GOVERNING PARTICIPATION AND RE-ENTRY PREFERENCES FOR
PROPERTY OWNERS, OPERATORS OF BUSINESSES, OR TENANTS IN
PROJECT AREA NO . 3 ; AND AUTHORIZING CERTAIN
TRANSMITTALS
THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY FIND ,
DETERMINE RESOLVE AND ORDER AS FOLLOWS :
Section I . The Agency by its Resolution No . 237 authorized
Agency staff to prepare , and Agency staff has Method of
Relocation , Draft Rules Governing Participation and Re-entry
Preferences for Property Owners , Operators of Businesses , or
Tenants in Project Area no. 3 (the "Rules" ) .
Section 2 . The Agency has received from the County of
Riverside the report required by Section 33328 of the Health and
Safety Code.
Section 3 . The Agency hereby approves the Preliminary
Report , Draft Redevelopment Plan , Draft Method of Relocation , and
Draft Rules presented to the Agency at this meeting and now on
file in the Office of the City Clerk substantially in the form
and content attached hereto. Agency staff and the redevelopment
consultant are hereby authorized to make such modifications to
the foregoing as may be appropriate in the circumstances .
Section 4 . The Agency hereby authorizes and directs Agency
staff to make the Draft Method of Relocation and the Draft Rules
available for inspection by all interested persons in the office
of the City Clerk .
Section 5 . The Agency hereby authorizes and directs Agency
staff to transmit the Preliminary Report to each affected taxing
agency and appropriate County officials as required by Section
33344 . 5 of the Health and Safety Code .
Section 6. The Agency hereby authorizes and directs Agency
staff to distribute the Draft Redevelopment Plan and , when
available, the Draft Environmental Impact Report ( "DEIR" ) to the
Planning Commission of the City of Palm Desert and to all
affected taxing agencies and appropriate County officials for
their review and comment pursuant to Sections 33353 . 4 (a ) and
33333 . 3 of the Health and Safety Code, and to transmit the DEIR
to all other appropriate entities and to make the DEIR available
for public review in accordance with the California Environmental
Quality Act and the State and local guidelines promulgated with
respect thereto.
RESOLUTION NO.
Section 7 . The Agency hereby authorizes and directs Agency
staff to prepare all information , reports , findings , responses ,
studies , assessments and other documents necessary or appropriate
under the California Community Redevelopment Law in connection
with proposed Project Area No. 3 and to make all appropriate or
necessary transmittals in connection therewith .
PASSED , APPROVED AND ADOPTED this 24th day of January , 1991 .
AYES :
NOES :
ABSENT :
ABSTAIN :
Walter H. Snyder , Chairman
ATTEST :
Sheila R . Gilligan , Secretary
2
PRELIMINARY REPORT
FOR
PROPOSED PROJECT AREA NO. 3
OF THE
PALM DESERT REDEVELOPMENT AGENCY
January, 1991
Prepared for:
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260
(619)346-0611
Prepared by:
Rosenow Spevacek Group,Inc.
540 North Golden Circle,Suite 305
Santa Ana,California 92705
(714) 541-4585
TABLE OF CONTENTS
INTRODUCTION 1
SECTION A: REASONS FOR SELECTING THE PROJECT AREA 2
SECTION B: A DESCRIPTION OF THE PHYSICAL, ECONOMIC AND
SOCIAL CONDITIONS IN THE PROJECT AREA 7
Regional Location 7
Existing Physical Conditions 7
Existing Land Use 8
Age,
Obsolescence, Deterioration, and Dilapidation 11
Defective
Design and Character of Physical Construction 13
Faulty Interior Arrangement and Exterior Spacing 14
Inadequate Provisions for Light, Ventilation, Sanitation,
Open Spaces and Recreational Facilities 15
Inadequate Public Improvements 16
Circulation System 16
Storm Drain System 17
Sewer System 17
Existing Social and Economic Conditions 18
SECTION C: PROPOSED METHOD OF FINANCING THE REDEVELOPMENT
OF THE PROJECT AREA 21
General Financing Methods Available to the Agency 21
Financial Assistance from the Participating Jurisdictions,
State, and/or Federal Government 21
Property Tax Increment Revenue 21
Bonded Debt 22
Lease or Sale of Agency-owned Property 22
Participation in Development 22
Other Available Sources 22
Proposed Redevelopment Activities and Estimated Costs 23
Estimated Tax Increment Revenue 23
Assessment of the Economic Feasibility of the Project 24
Reasons for Including Tax Increment Revenue Provisions
in the Plan 25
SECTION D &E: DESCRIPTION OF SPECIFIC PROJECTS PROPOSED BY THE
AGENCY AND HOW THESE PROJECTS WILL ALLEVIATE
CONDITIONS DESCRIBED IN SECTIONS A AND B ABOVE 28
Public Improvement Projects 31
Community and Cultural Facilities 32
Community Development Programs 33
Housing Programs 33
EXHIBITS
EXHIBIT A: PROJECT AREA MAP
EXHIBIT B: REGIONAL LOCATION MAP
ATTACHMENT A
INTRODUCTION
The Palm Desert Redevelopment Agency ("Agency") is undertaking proceedings to adopt a
redevelopment plan (the "Redevelopment Plan") for Project Area No. 3 (the "Project
Area") of the Agency. The Project Area consisting of approximately 764 acres is outlined
in Exhibit A. The Redevelopment Plan will not initiate any changes in land use or directly
implement any specific private development proposals. Instead, the Redevelopment Plan
is designed to assist the Agency in its efforts to correct deficiencies in the Project Area,
including public infrastructure and facility deficiencies, promote property rehabilitation
and economic development; and to facilitate redevelopment and revitalization activities.
The Redevelopment Plan would be implemented over a 40 year period.
Pursuant to Section 33344.5 of the California Community Redevelopment Law, Health and
Safety Code, Section 33300 gI. ugq. (the "Redevelopment Law"), this Preliminary Report
must be submitted to each affected taxing agency that levies property taxes within the
proposed Project Area. This Report presents the following:
A. The reasons for selecting the Project Area.
B. A description of the existing physical, social, and economic conditions in the
Project Area.
C. A preliminary assessment of the proposed method of financing the
redevelopment of the Project Area, including an assessment of the economic
feasibility of the project and the reasons for including a provision for the
division of taxes pursuant to Section 33670 of the Redevelopment Law in the
Redevelopment Plan.
D. A description of the specific project or projects now proposed by the Agency
for the Project Area in sufficient detail and specificity to permit the fiscal
review committee, if one is created, to review the potential impacts of the
proposed redevelopment project.
E. A description of how the project or projects to be pursued by the Agency will
improve or alleviate the conditions described in paragraph B above.
palmdst\prerpt\m[ro-a 1 1/13/91
SECTION A
REASONS FOR SELECTING THE PROJECT AREA
The proposed Project Area includes approximately 764 acres of residential, office,
commercial, industrial, public and open space uses. The Project Area is located in the City
of Palm Desert ("City"), Riverside County ("County"), California and generally includes
that area of the City bounded by Portola Avenue and Cook Street to the west, the
corporate City boundary and Carlotta Drive to the east, Hovely Lane and Running Springs
Drive to the north and the Whitewater River Channel to the south. The Portola Country
Club is no a part of the Project Area. The proposed boundaries for the Project Area are
designated in Exhibit A.
The area selected as the proposed Project Area is characterized by a variety of conditions
which adversely impact the economic viability of properties in the Project Area, and also
adversely impacts the health, safety and welfare of Project Area residents. In many
respects, development in the Project Area has occurred in an unrestricted and unplanned
manner. This has resulted in a combination of conditions that are classified as blight under
the Redevelopment Law.
A parcel-by-parcel visual survey of the Project Area conducted by the Agency's
redevelopment Consultant, Rosenow Spevacek Group, Inc. (the "Consultant") in the latter
part of 1990, has reveled that the Project Area is characterized by aging and deteriorated
housing; lack of or inadequate public infrastructure improvements, including a poorly laid
out circulation system; economic development constraints and inadequate public and
cultural facilities.
\PsIm�\PRRt\inceoa 2 1/13/91
There are numerous deteriorating residential structures found within the Project Area.
These residential structures show signs of age, obsolescence, deterioration and
dilapidation. The structures exhibit worn and weathered facades, peeling paint, and overall
lack of maintenance and upkeep.
There are numerous haphazardly and inconsistently designed streets in the Project Area.
In the residential areas, the streets lack curbs, gutters and sidewalks.
Limited or non-existent public infrastructure improvements adversely impact much of the
Project Area. Sewers are absent in the older residential areas and residents rely on septic
tanks which pose health and safety risks.
Limited access to the Project Area causes congestion on Cook Street, the major north-
south arterial traversing the Project Area. This impediment also increases response time
for fire and rescue vehicles, serving the Project Area, thereby adversely impacting the
health, safety and welfare of Project Area residents.
Congestion is further aggravated along Cook Street due to the lack of signalized
intersections. At present, stop signs are the only control devices along Cook Street's entire
length.
Deficient off-street parking and loading facilities contribute to impacted traffic flow in the
industrial/business park areas along Cook Street.
Public recreational facilities within the Project Area are lacking. The only facilities, a golf
course and tennis courts, are located within gated communities and are inaccessible to the
majority of Project Area residents and the general public.
\palmda\pRrpt\lntro-a 3 1/13/91
The inadequate public improvements serving the Project Area cause a reduction of, and
lack of, proper utilization of the area, creating an economic burden on the community that
cannot be reversed or alleviated by private enterprise acting alone. Successful
redevelopment of the Project Area is contingent upon the provision of needed
infrastructure improvements. Only through the actions of the Agency and the utilization of
redevelopment funds and activities can these constraints be eliminated.
The Agency, in a desire to save and create the jobs and to resolve community deficiencies,
is proposing to use redevelopment to address significant problems present in the Project
Area. The redevelopment of the Project Area would obtain the objectives of the
Redevelopment Law. The Project Area is in need of, and particularly suitable for,
redevelopment under the Redevelopment Law. A primary purpose of the Agency in the
adoption of the Redevelopment Plan is to provide the mechanism and funding to: 1)
improve the prevalent adverse physical conditions in the Project Area; 2) ensure that
adequate public infrastructure is created; and 3) promote economic development within
the Project Area. To this end, the boundaries of the Project Area were selected. The
primary reasons for selecting the proposed Project Area include:
o The need to make provision of adequate roadways to correct street
alignment problems, to eliminate road hazards and to provide adequate
access to freeways.
o The need to eliminate and prevent the reoccurrence of conditions of
blight and deterioration in the Project Area and the conservation,
rehabilitation, and redevelopment of the Project Area in accordance with
the Redevelopment Plan and future Annual Work Programs.
o The need to encourage tourism, including the development of high-quality
hotels, motels, restaurants, and meeting facilities.
o The need to make provision for the enhancement and renovation of
businesses within the Project Area to promote their economic viability.
P+ \PrcTP��« 4 1/13/91
o The need to encourage cooperation and participation of residents,
business persons, public agencies and community organizations in the
revitalization of the Project Area.
o The need to stimulate investment of the private sector in the full
development of the Project Area.
o The need to make provision for needed improvements to the community's
educational, cultural, residential and other community facilities to better
serve the Project Area.
o The need to promote public improvement facilities which are sensitive to
the unique environmental qualities of the Project Area.
o The need to establish a program which promotes the rehabilitation of the
existing housing stock where appropriate.
o The need to provide for expansion of the resource of developable land by
making underutilized land available for development.
o The need to alleviate certain environmental deficiencies including
substandard vehicular and pedestrian circulation systems, insufficient off-
street parking and other similar public improvements.
o The need to make provision for improvement of local drainage conditions
that constrain the development of various parcels in the Project Area.
o The need to achieve an environment reflecting a high level of concern for
architectural, landscape, and urban design principles appropriate to the
objectives of the Redevelopment Plan.
o The need for provision of, improvement or preservation of low and
moderate income housing as is required to satisfy the needs and desires of
the various age and income groups of the community, maximizing the
opportunity for individual choice, and meeting the requirements of State
law.
o The need to develop safeguards against noise and pollution to enhance
the industrial/commercial community.
o The need to upgrade existing commercial and industrial uses in the
Project Area.
The area included in the proposed Project Area contains pervasive detrimental physical
conditions which require the tools provided by Redevelopment Law to remedy. Private
enterprise acting alone has not and cannot remedy these problems.
P+lmdst\PRE\��S 5 1/13/91
Without the provisions and tools provided through the adoption of the Redevelopment
Plan, the existing problem conditions will intensify, further limiting the future economic
viability of the Project Area and adversely impacting the quality of life and the economic
environment of the City of Palm Desert.
The redevelopment of the Project Area may include, but will not be limited to, the actions
outlined below. The Agency proposes to eliminate and prevent the reaccurence of the
conditions of blight within the Project Area by the following actions.
o Providing tools and funds to assist existing property owners and tenants to
upgrade their deteriorating structures and properties.
o Addressing current economic stagnation within the Project Area by providing
funding sources for rehabilitation of existing uses and the consolidation and
redevelopment of obsolete sized and configured parcels.
o Addressing and correcting the problem of inadequate, insufficient and
deteriorated infrastructures, including correcting existing problems and funding
the construction of new facilities where none exist, and preventing further
deterioration of the circulation system, storm drains, sewers, waterlines and
utilities.
o Arresting the economic dislocation, deterioration and disuse of properties within
the Project Area and eliminating such conditions as deteriorated structures and
visual blight.
\palmdsr\prerpt\intro-a 6 1/13/91
SECTION B
A DESCRIPTION OF THE PHYSICAL, ECONOMIC AND
SOCIAL CONDITIONS IN THE PROJECT AREA
Section 33030 of the Redevelopment Law states that "it is found and declared that there
exist in many communities blighted areas which constitute either physical, social, or
economic liabilities, requiring redevelopment in the interest of the health, safety, and
general welfare of the people of such communities and of the state". This section of the
Report describes the physical, economic and social conditions existing within the Project
Area.
REGIONAL LOCATION
The City of Palm Desert is located in central Riverside County in the Coachella Valley.
The City is surrounded by patches of County unincorporated land and borders the City of
Rancho Mirage to the west and the City of Indian Wells to the east. Regional access is
provided by Interstate 10 and Highway 111. A map of the regional location is attached as
Exhibit B.
EXISTING PHYSICAL CONDITIONS
The Project Area contains approximately 764 acres. Current land uses within the Project
Area include light industrial, office/professional, high and low density residential, open
space and public facilities/utilities. The Project Area generally includes that area of the
City bounded by Portola Avenue and Cook Street to the west, the corporate City boundary
P+ \pR�\kao 7 1/13/91
and Carlotta Drive to the east, Hovely Lane and properties south of Running Springs Drive
to the north, and the Whitewater River Channel to the south. The Portola Country Club is
not included within the Project Area. Exhibit A to this Report is a map delineating the
proposed boundaries of the Project Area.
EXISTING LAND USE
In November and December, 1990, the Consultant conducted a parcel by parcel survey to
document the location and type of blighting conditions present throughout the Project
Areal. Table B-1 presents the results of this survey.
TABLE B-1
EXISTING LAND USE
No. of
Type of Use Parcels Units Acreagq
Commercial/
Service Industrial 282 656 113.13
Office/Professional 1 3 1.08
Open Space/
Recreational* 18 -- 95.62
Parking 1 -- .89
Public/Institutional 14 5 177.37
Residential 272 421 41.05
Rights-of-Way** 3 -- 11.78
Under Construction 17 -- 64.73
Undeveloped 60 194.41
668 1,141 700.06 "*
* = includes common area in condominium developments,golf course and tennis court
** = private undedicated streets
*** = 700.06 acres is the total acreage of land that has been parcelized. Public rights-
of-way comprise the remaining area;approximately 64 acres
Source: Land Use and Conditions Survey,RSG,Inc.,November and December 1990
1. Land use and condition survey conducted by RSG,Inc.,November and December, 1990.
\p•lmdst\pRrix\sect-b 8 1/13/91
Information obtained from the County Assessor's office indicates that
approximately 32 percent (32%) of the residential units are owner-occupied.
(For purposes of this Report, an owner occupant is defined as a property owner
utilizing the $7,000 homeowner tax deduction.) The remaining units are either
rentals or are a secondary residence. Table B-2 presents a breakdown of the 421
residential units by type.
TABLE B-2
RESIDENTIAL UNITS BY TYPE
No. of
Type of Use Units
Single family - detached 261
Single family - attached 100
Duplex 18
Multi-family 42
421
Source: Land Use and Conditions Survey,RSG,Inc., November and December 1990
A blighted area is one which is characterized by one or more of those conditions set forth
in Sections 33031 or 33032 of the Redevelopment Law (see Attachment A), causing a
reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a
serious physical, social, or economic burden on the community which cannot reasonably be
expected to be reversed or alleviated by private enterprise acting alone.
Section 33031 of the Redevelopment Law states that a blighted area is characterized by the
existence of buildings and structures, used or intended to be used for living, commercial,
industrial, or other purposes, or any combination of such uses, which are unfit or unsafe to
occupy for such purposes and are conducive to ill health, transmission of disease, infant
\pa \per\ -0 9 1/13/91
mortality, juvenile delinquency, and crime because of any one or a combination of the
following factors:
a. Defective design and character of physical construction.
b. Faulty interior arrangement and exterior spacing.
c. High density of population and overcrowding.
d. Inadequate provision for ventilation, light, sanitation, open spaces, and recreation
facilities.
e. Age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses.
Section 33032 of the Redevelopment Law states that a blighted area is characterized by
properties which suffer from economic dislocation, deterioration, or disuse because of one
or more of the following factors which cause a reduction of, or lack of, proper utilization of
the area to such an extent that it constitutes a serious physical, social, or economic burden
on the community which cannot reasonably be expected to be reversed or alleviated by
private enterprise acting alone:
a. The subdividing and sale of lots of irregular form and shape and inadequate size
for proper usefulness and development.
b. The laying out of lots in disregard of the contours and other topographic or
physical characteristics of the ground and surrounding conditions.
c. The existence of inadequate public improvements, public facilities, open spaces,
and utilities which cannot be remedied by private or governmental action without
redevelopment.
d. A prevalence of depreciated values, impaired investments, and social and
economic maladjustment.
Conditions of blight, as defined by the Redevelopment Law are present and pervasive
throughout the Project Area. Specific blighting conditions found within the Project Area as
described in this Section include defective site design, structures exhibiting signs of aging
and neglect and in need of rehabilitation, lack of public facilities, deficient or lack of
\P*md\PRr\sect. 10 1/13/91
infrastructure improvements and inadequate parking and loading facilities. The following
narative descriobes and cites examples of physical blight found within the Project Area.
AGE, OBSOLESCENCE, DETERIORATION AND DILAPIDATION
Within the Project Area are numerous examples of parcels suffering from age and physical
obsolescence. Many structures are generally outmoded and reflect design characteristics
that no longer are compatible with contemporary uses. Residential and industrial
structures also exhibit deteriorated facades and/or foundations, peeling paint, and an
overall lack of maintenance. Approximately 282 parcels (42 percent) exhibit conditions of
physical obsolescence and age.
This blighting condition is concentrated in the residential neighborhoods throughout the
Project Area and the industrial area south of 42nd Avenue, west of Cook Street. Examples
include residential units adjacent to one another without fenced side or backyards,
structures exhibiting the need for renovation and/or rehabilitation, industrial buildings
constructed with aluminum outer walls, and industrial buildings lacking proper storage
areas for hazardous materials and waste.
In addition to noting the existing land uses in the Project Area, the survey conducted by the
Consultant in the latter part of 1990 also documented the location and types of blighting
conditions present throughout the Project Area. Exterior structural conditions of the
improvements were also documented. The methodology used when conducting the survey
consisted of viewing the area and noting, by parcel, the building condition and any
deficiencies. Conditions were assigned to each parcel based upon the following
\palmdst\preept\aeab 11 1/13/91
characteristics. The categories were formed based upon nationally accepted rating
standards and the range of existing conditions present in the Project Area.
Good Condition
No noticeable deficiencies in the structural condition of roof, walls or foundation.
Structure appears to have adequate plumbing and electrical service and is subject to
a regular program of maintenance. Exterior walls and other surfaces are well
painted and clean, and windows and doors are intact.
Fair Condition
The structure has been maintained adequately enough to eliminate any major
structural defects. The exterior of the building shows signs of deferred maintenance
such as peeling paint, dirty exterior walls and other surfaces, weathered and worn
wood facades and/or cracked plaster or foundations.
Poor Condition
The structure shows signs of structural deterioration such as sagging roof, walls or
crumbling foundation. Patchwork repairs may be apparent and paint may be largely
peeled or faded. There are obvious indications that proper maintenance to the
structure is very infrequent. The exterior walls and other surfaces are very dirty and
show signs of neglect.
In severe instances, the building appears structurally unsound and maintenance is
nonexistent. Its fitness for human occupation is highly questionable and the state of
deterioration and neglect is such that it is a candidate for demolition.
\pilmda\prr\�b 12 1/13/91
Table B-3 documents the building condition of the 1,141 units2 located within the Project
Area.
TABLE B-3
BUILDING CONDITIONS
Units Condition Percent of Total
589 Good 51.62
424 Fair 37.16
128 Poor 11.22
1,141 100.00
Source: RSG Building Condition Survey,November and December, 1990
As demonstrated in Table B-3, 128 (11 percent) of the structures in the Project Area have
been marginally maintained and exhibit signs of deterioration and neglect. Instances of
peeling paint, overgrown and unkempt yards, discarded items stored outside but adjacent
to the structure, and cracked stucco are predominantly located in the residential area south
of Merle Drive and west of Cook Street. This neglect has be attributed, in part, to less than
one-third of residential units being owner occupied.
DEFECTIVE DESIGN AND CHARM::ER OF PHYSICAL CONSTRUCTION
The Project Area contains numerous structures which exhibit defective design and
character of physical construction. Examples include buildings that do not meet modern
code standards, lack of or insufficient off-street parking and buildings that lack or have
inadequate loading docks.
2. Includes all residential units and office/industrial suites.
\Pam\PRE\ -b 13 1/13/91
Approximately 103 of the parcels within the Project Area (16 percent) exhibit conditions of
defective design and character of physical construction. Concentrations of parcels
exhibiting these conditions are located within the industrial area west of Cook Street along
Joni Drive and Velie Drive. This area was developed prior to incorporation by the City
under County guidelines. Off-street parking required by the County was minimal, resulting
in inadequate parking for patrons and employees. In many instances, the only available
parking is curbside. In an attempt to minimize parking problems, stalls have been striped
along both sides of the street. However, the result has been impeded traffic flow and
ingress/egress to business properties.
Lack of loading facilities also contribute to blighting and problematic conditions in this
area. Quite often, trucks will park in the street to load and/or unload, preventing access to
the meager parking that is available. At times, patrons and employees are unable to exit
their parking places because they have been blocked in by a truck.
FAULTY INTERIOR ARRANGEMENT AND EXTERIOR SPACING
Properties that demonstrate conditions of faulty interior arrangement and exterior spacing
are prevalent throughout the Project Area. Approximately 124 parcels (19 percent) are
characterized by excessive lot coverage, lack of off-street parking and overall poor site
planning.
In the industrial/business parks along Cook Street, conditions of faulty interior
arrangement and exterior spacing predominate. Lack of or insufficient indoor storage
areas results in pallets, pipe, sheetrock, and other miscellaneous items being stored outside
\pa \PRTPI\mob 14 1/13/91
of business structures in designated parking areas. Not only are these stockpiles unsightly,
they exacerbate an adverse parking situation.
INADEQUATE PROVISIONS FOR LIGHT, VENTILATION, SANITATION, OPEN
SPACES AND RECREATIONAL FACILITIES
Characteristics of this type of blight include garages or other structures, or portions thereof,
converted to residences, and overcrowding of structures with excessive number of
occupants. While only a small percentage of residentially used parcels (approximately 2
percent) exhibit this condition, the impact has a deleterious effect throughout the entire
neighborhood.
Conditions of inadequate light and ventilation occurs in the residential area south of Merle
Drive and west of Cook Street. Garages have been converted to residential uses. An
excessive number of vehicles are present as well. Common Code Enforcement3 complaints
include vehicles that have been cannibalized and abandoned. Trailers and camper shells
being utilized as residences are also in evidence in this area.
The residents of the Project Area are greatly affected by the lack of accessible recreational
facilities and open space. No public recreational facilities exist within the Project Area.
Common area within gated communities and a private golf course are the only open space
within the Project Area and are not accessible to the general public.
3. Information provided by City of Palm Desert Code Enforcement.
\Palmas\pmrix\mad, 15 1/13/91
,
INADEQUATE PUBLIC IMPROVEMENTS
Circulation System
The traffic flow on Cook Street, the major north-south arterial, must be upgraded and
improved. At the present time, stop signs placed at indiscriminate locations are the only
traffic control devices along Cook Street. During peak traffic hours, motorists attempting
to make left turns onto Cook Street are often times backed up on the side streets waiting
for a break in traffic. The lack of access between business/industrial parks further impacts
traffic flow by forcing motorists onto Cook Street to go from one park to another. Various
intersections require signalization and existing hazardous 'Tied intersections require
realignment where possible to reduce congestion and improve traffic flow.
Circulation is also deficient in the business/industrial areas due to the lack of off-street
parking. As patrons and employees search for a parking place at the curb, congestion
occurs and reduces the speed of traffic, thereby impacting traffic flow within the Project
Area.
South of Sheryl Avenue, Cook Street dips into the Whitewater River Channel. Visibility is
impaired for motorists turning onto Cook Street from Sheryl Avenue and from the sewage
treatment plant. During times of heavy rains, Cook Street floods creating safety hazards
for motorists.
At the present time, Country Club Drive and Fred Waring Drive are the only east-west
arterials in the vicinity of the Project Area. The need exists to extend 42nd Avenue west to
Portola Avenue to increase access to the Project Area, to improve circulation, and reduce
traffic on Cook Street. Rebecca Road also needs to be extended to Hovely Lane, thereby
\Pam \Pr \s-b 16 1/13/91
providing an additional north-south arterial through the Project Area, and reducing traffic
on Cook Street. Conversations with City staff indicate that the lack of access to the Project
Area adversely impacts response time for both fire and sheriff service calls, thereby
adversely affecting the health and welfare of Project Area residents.
An in-depth analysis of current traffic volumes is included in the Environmental Impact
Report prepared by Cotton/Beland/Associates.
Storm Drain System
Currently, storm drain improvements within the Project Area are limited to the Whitewater
River Channel and existing curbs and gutters. The Public Works Department has indicated
a main line is needed along Cook Street and an extensive study must be undertaken to
determine what additional improvements are needed. Standing water is evident
throughout the Project Area even during dry periods. During heavy rains, Cook Street at
the Whitewater River Channel is flooded, creating traffic congestion and health and safety
problems.
Sewer System
The residential area south of Merle Drive and west of Cook Street is currently utilizing
septic tanks. The City sewer lines need to be extended and/or improved to service this
area, thereby minimizing health and safety risks.
\palmdst\pRrpt\sectb 17 1/13/91
Properties within the Project Area suffer from economic dislocation, deterioration or
disuse due to inadequate public improvements, public facilities and open space which
cannot be remedied by private enterprise acting alone.
EXISTING SOCIAL AND ECONOMIC CONDITIONS
A demographic profile for The Project Area was prepared by Equifax Marketing Decision
Systems. Tables B-4 through B-6 present race and ethnicity, income distribution, and age
distribution.
TABLE B-4
RACE AND ETHNICITY
1990 ESTIMATES
Race/ No. of
Ethnicity Persons Percent
White 2,063 95.77
Black 10 .47
American Indian 11 .51
Asian, Pacific
Islander 13 .62
Other _57 2.64,
TOTAL 2,154 100.0
Spanish/Hispanic Origin* 117 5.45
*Spanish/Hispanic Origin is an ethnic rather than a racial
classification and as such, is generally included as part of the Other
category. Spanish/Hispanic Origin is included in this table to show
the percentage of the entire population that is considered to be of
Spanish or Hispanic origin.
Source: Equifax
Pit\PKr\i-b 18 1/13/91
The 1990 population of The Project Area is estimated to be 2,154 persons with
approximately 10 percent (10%) more females than males. The vast majority of persons
are Caucasian (approximately 96%) and the largest minority population is Hispanic.
TABLE B-5
INCOME DISTRIBUTION
Income No. of
Category Households Percent
Under 7,500 78 7.51
7,500-14,999 115 11.02
15,000-24,999 195 18.68
25,000-34,999 212 20.30
35,000-49,999 184 17.65
50,000-74,999 170 16.35
75,000+ —88 8.49
TOTAL 1,042 100.00
Source: Equifax
The 1990 median income for a family of four residing within the Project Area is estimated
to be $30,498; approximately 90 percent (90%) of the County of Riverside median income
of$33,8004.
4. U. S. Department of Housing and Urban Development, Revised Income Limits for Public Housing and
Section 8 Programs and Median Family Incomes for Fiscal Year 1990.
\palmdst\prerpt\sea.O 19 1/13/91
TABLE B-6
1990 AGE AND SEX DISTRIBUTION
Population by Sex 2,154
Male 44.96%
Female 55.04%
Population by Age 2,154
Under 5 years 3.83%
5 to 9 years 3.51%
10 to 14 years 3.53%
15 to 19 years 3.85%
20 to 24 years 4.25%
25 to 29 years 4.44%
30 to 34 years 5.63%
35 to 44 years 10.83%
45 to 54 years 6.95%
55 to 59 years 4.68%
60 to 64 years 10.68%
65 to 74 years 24.45%
75+ years 13.36%
Median Age 58.40
Average Age 50.87
Source: Equifax
According to Table B-6, the largest (age) concentration is over 65 (approximately 38
percent).
\palmdu\pR�\.ea-O 20 1/13/91
SECTION C
PROPOSED METHOD OF FINANCING THE
REDEVELOPMENT OF THE PROJECT AREA
GENERAL FINANCING METHODS AVAILABLE TO THE AGENCY
Redevelopment of the Project Area is proposed to be financed as follows:
- Financial assistance from the City, State of California and/or Federal
Government as available;
- Property tax increments;
- Agency bonds or other obligations;
- Lease or sale of Agency-owned property;
- Participation in development; and
- Any other available and appropriate source.
Financial Assistance from the Participating Jurisdictions, State, and/or the Federal
Government
These funds shall include loans and advances for planning, construction and operating
capital for implementation until such time that sufficient tax increment revenue is raised to
repay loans and provide other means of operating capital.
As available, other funds such as gas tax funds and Community Development Block Grants
may also be used to pay the costs of project implementation. The Agency and the City will
work together to pursue available grants and loans to assist with project implementation.
Property Tax Increment Revenue
The Agency is proposing to use property tax increment revenue as provided for in Article 6,
Section 33670 of the Redevelopment Law as the primary financing mechanism to
implement the Redevelopment Plan.
\P&�\PRRC\ua< 21 1/13/91
Tax increment revenue may only be used to pay indebtedness incurred by the Agency.
Indebtedness includes principal of and interest on loans, moneys advanced, or indebtedness
(whether funded, refunded, assumed, or otherwise) incurred by the Agency to finance or
refinance, in whole or in part, redevelopment activities.
Bonded Debt
The Agency may from time to time issue bonds and/or notes or other obligations for any of
its corporate purposes. The Agency may issue bonds or other obligations on which the
principal and interest are payable in whole or in part from tax increment revenue.
Lease or Sale of Agency-Owned Property
If the Agency acquires property within or outside of the Project Area, the revenue
generated by selling or leasing such properties may be used to pay the costs of
Redevelopment Plan implementation.
Participation in Development
If the Agency enters into agreements with property owners, tenants and/or other
developers which provide for revenues to be paid or repaid to the Agency, such revenues
may be used to pay project implementation costs.
Other Available Sources
Any other loans, grants or financial assistance from the United States, or any other public
or private source will be utilized, as available. The Agency will also consider use of the
powers provided by Chapter 8 (Redevelopment Construction Loans) of the
Redevelopment Law to provide construction funds for appropriate projects. Where
feasible, the Agency will use assessment districts and/or Mello-Roos bond financing to pay
for the costs of public infrastructure, facilities and operations.
\palmda\pr c\aea< 22 1/13/91
PROPOSED REDEVELOPMENT ACTIVITIES AND ESTIMATED COSTS
Table D presents over $142,230,600 of public projects and improvements needed to
redevelop the Project Area. The cost estimates presented in Table D also make provision
for administration costs, a contingency fund and project cost inflation.
Because projects will commence construction -ver the next twenty-five to thirty years,
significant cost inflation could occur. It is assumed that project costs will be financed and
for estimating purposes, it is assumed that the total cost of $142,230,600 is bonded for a 25
year term at the legally allowed maximum interest rate of 12%. Because Redevelopment
Law requires that 20% of all tax increment revenue be set aside for low and moderate
income housing purposes unless certain findings are made, 20% of the total costs (including
financing costs) have been added so this obligation can be met. It is estimated that, over
the life of the Project, the implementation of the Redevelopment Plan will require a
maximum of $566,699,913 in tax increment.
ESTIMATED TAX INCREMENT REVENUE
Implementation of the Redevelopment Plan will generate tax increment revenue. Table C
presents an estimate of the tax increment revenue which will be generated.
Under the assumed forecasted growth scenario, approximately $4.7 billion of new assessed
valuation will be added to the Project Area during the next 40 years. This results in
approximately $469 million of tax increment revenue (net of the 20 percent set-aside
palvwu\prrrpt\ieu-c 23 1/13/91
housing funds) to be generated and available to the Agency over the 40 year life of the
Redevelopment Plan.
ASSESSMENT OF THE ECONOMIC FEASIBILITY OF THE PROJECT
A list of the currently identified proposed redevelopment projects, the overall cost,
including administrative and financing costs, is presented in Table D of Section D and E of
this Report. As enumerated on Table D, total proposed project costs are estimated to be
approximately $453 million. The estimated tax increment revenue available to fund these
activities totals approximately $469 million. The Agency recognizes that although the
entire list of projects that have been enumerated are needed, improvements can only be
implemented as funds become available. Also, it may be of benefit to fund smaller projects
with available monies, rather than waiting until the Agency has accumulated funds
sufficient to implement the more costly projects. It will be necessary to prioritize the
projects from time-to-time to take advantage of market conditions and best utilize the
Agency's resources. Tax allocation bonds will be used as feasible to assist in project
financing.
\wlmda\PRE\,ca< 24 1/13/91
REASONS FOR INCLUDING TAX INCREMENT REVENUE PROVISIONS IN THE
PLAN
Tax increment revenue provisions must be included in the Redevelopment Plan because
other funding sources are not available or are insufficient to finance the costs of
redevelopment of the Project Area. Utilization of tax increment financing for this
Redevelopment Project will provide the resources to develop a consistent and directed
approach to activities and programs needed to eliminate blight, provide for improvement
of the infrastructure, and aid in the expansion of the Project Area's economic base. It is
commonly agreed that if adverse conditions within the Project Area are not addressed, the
resulting physical and financial impacts imposed by these conditions will exacerbate the
existing blighting conditions. It will cause serious economic hardships and undue
disruption of the lives and activities of people residing and working in the Project Area and
the City.
Since both federal and state governments are under extreme budgetary shortfalls, it is
extremely clear that federal and state assistance in providing funding for necessary public
infrastructure improvements and facilities cannot be reasonably expected. The City does
not currently have or expect to have the available financial resources to fund the magnitude
of improvements necessary to reverse the adverse and hazardous conditions present in the
Project Area. Other financing programs available to the City, such as assessment districts,
may not be workable for the type and amount of improvements required. Assessment
districts may impose such detrimental financial burdens that area residents and businesses
would be unable to bear. It cannot be reasonably expected that private enterprise acting
alone would have the means to accomplish redevelopment of the Project Area. Without
the provision of tax increment revenue financing, sufficient revenue would not be available
to fund the needed programs and improvements.
\palmdsr\prerpr\sect< 25 1/13/91
•
PALM DESERT REDEVELOPMENT AGENCY TABLE C 14-Jan-91
PROJECT AREA f3
TAX INCREMENT PROJECTIONS 7.00% Scenario
* Fiscal Estimated New Net Estimated 2% Adjusted Cumulative I Agency I Agency Agency *
• Year Secured AV Development Incremental Gross Tax Inflation Gross Tax Gross Tax ILow & Mod Net Tax Net Cumulative*
* Valuation Increment Pass-thru Increment Increment Housing Increment Tax Increment *
• Total Fund Funds Total *
' (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) *
' BY 1990-91 141,135,376 *
• 1 1991-92 151,014,852 23,324,000 33,203,476 332,035 26,717 305,318 305,318 61,064 244,254 244,254 *
* 2 1992-93 186,542,572 17,681,500 63,088,696 630,887 53,968 576,919 882,237 115,384 461,535 705,789 *
* 3 1993-94 218,519,757 17,185,018 94,569,399 945,694 81,764 863,930 1,746,166 172,786 691,144 1,396,933 *
' 4 1994-95 252,204,109 17,215,272 128,284,005 1,282,840 110,117 1,172,723 2,918,889 234,545 938.179 2,335,112 *
* 5 1995-96 288,278,738 16,446,289 163,589,651 1,635,897 139,036 1,496,861 4,415,750 299,372 1,197,488 3.532,600 *
* 6 1996-97 326,055,779 16,939,678 201,860,081 2,018,601 168,534 1,850,067 6,265,817 370,013 1,480,054 5,012,654 *
* 7 1997-98 367,005,139 17,447,869 243,317,632 2,433,176 198,621 2,234,555 8,500,372 446,911 1,787,644 6,800,298 *
• 8 1998-99 411,364,718 17,347,935 287,577,277 2,875,773 229,311 2,646,462 11,146,835 529,292 2,117,170 8,917,468 *
• 9 1999-00 458,722,539 17,756,090 335,343,253 3,353,433 260,614 3,092,819 14,239,653 618,564 2,474,255 11,391,723 *
• 10 2000-01 509,832,133 18,174,242 386,870,999 3,868,710 292,543 3,576,167 17,815,820 715,233 2,860,934 14,252,656 *
• 11 2001-02 564,966,821 18,364,815 442,196,260 4,421,963 325,111 4,096,852 21,912,672 819,370 3,277,482 17,530,138 *
* 12 2002-03 624,164,851 15,921,500 498,950,975 4,989,510 358,330 4,631,180 26,543,852 926,236 3,704,944 21,235,082 *
• 13 2003-04 684,892,396 16,236,870 559,993,890 5,599,939 392,213 5,207,726 31,751,578 1,041,545 4,166,180 25,401,262 *
' 14 2004-05 750,208,314 16,561,605 625,634,543 6,256,345 426,775 5,829,571 37,581,149 1,165,914 4,663,657 30,064,919 *
* 15 2005-06 820,443,813 16,744,085 696,052,522 6,960,525 462,027 6,498,498 44,079,647 1,299,700 5,198,799 35,263,718
' 16 2006-07 895,791,051 16,927,372 771,583,047 7,715,830 497,984 7,217,846 51,297,493 1,443,569 5,774,277 41,037,995 *
• 17 2007-08 976,608,713 13,061,450 848,534,787 8,485,348 534,661 7,950,687 59,248,180 1,590,137 6,360,549 47,398,544 *
* 18 2008-09 1,058,947,074 13,322,679 931,134,377 9,311,344 572,071 8,739,273 67,987,453 1,747,855 6,991,418 54,389,962 *
• 19 2009-10 1,147,328,636 13,350,228 1,019,543,488 10.195,435 610,230 9,585,205 77,572,658 1,917,041 7,668,164 62,058,126 *
* 20 2010-11 1,241,926,385 11,619,600 1,112,410,609 11,124,106 649,151 10,474,955 88,047,613 2,094,991 8,379,964 70,438,090 *
PALM DESERT REDEVELOPMENT AGENCY TABLE C 14-Jan-91
PROJECT AREA 03
TAX INCREMENT PROJECTIONS 7.00% Scenario
* _____a_________________a___=____=___=_=___a====a_====_________ _____
* Fiscal Estimated New Net Estimated 2% Adjusted Cumulative I Agency I Agency Agency *
* Year Secured AV Development Incremental Gross Tax Inflation Gross Tax Gross Tax ILow 6 Mod ( Net Tax Net Cumulative*
* Valuation Increment Pass-thru Increment Increment Housing I Increment Tax Increment *
* Total Fund ( Funds Total *
* (1) (2) (3) (4) (5) (6) (7) (8) $ (9) (10) *
* *
* BY 1990-91 141,135,376
* 21 2011-12 1,341,294,204 0 1,200,158,828 12,001,588 688,851 11,312,737 99,360,350 2,262,547 9,050,190 79,488,280 *
* 22 2012-13 1,435,184,798 0 1,294,049,422 12,940,494 729,345 12,211,149 111,571,500 2,442,230 9,768,919 89,257,200 *
* 23 2013-14 1,535,647,734 0 1,394,512,358 13,945,124 770,649 13,174,475 124,745,974 2,634,895 10,539,580 99,796,779 *
* 24 2014-15 1,643,143,075 0 1,502,007,699 15,020,077 812,779 14,207,298 138,953,273 2,841,460 11,365,839 111,162,618 *
* 25 2015-16 1,758,163,090 0 1,617,027,714 16,170,277 855,751 15,314,526 154,267,799 3,062,905 12,251,621 123,414,239 *
* 26 2016-17 1,881,234,507 0 1,740,099,131 17,400,991 899,583 16,501,408 170,769,207 3,300,282 13,201,127 136,615,365 *
* 27 2017-18 2,012,920,922 0 1,871,785,546 18,717,855 944,292 17,773,564 188,542,771 3,554,713 14,218,851 150,834,216 *
* 28 2018-19 2,153,825,387 0 2,012,690,011 20,126,900 989,894 19,137,006 207,679,776 3,827,401 15,309,605 166,143,821 *
* 29 2019-20 2,304,593,164 0 2,163,457,788 21,634,578 1,036,409 20,598,169 228,277,945 4,119,634 16,478,535 182,622,356 *
* 30 2020-21 2,465,914,685 0 2,324,779,309 23,247,793 1,083,854 22,163,939 250,441,883 4,432,788 17,731,151 200,353,507 *
* 31 2021-22 2,638,528,713 0 2,497,393,337 24,973,933 1,132,248 23,841,685 274,283,568 4,768,337 19,073,348 219,426,855 *
* 32 2022-23 2,823,225,723 0 2,682,090,347 26,820,903 1,181,610 25,639,293 299,922,862 5,127,859 20,511,435 239,938,289 *
* 33 2023-24 3,020,851,524 0 2,879,716,148 28,797,161 1,231,959 27,565,202 327,488,064 5,513,040 22,052,162 261,990,451 *
* 34 2024-25 3,232,311,130 0 3,091,175,754 30,911,758 1,283,316 29,628,442 357,116,506 5,925,688 23,702,754 285,693,204 *
* 35 2025-26 3,458,572,909 0 3,317,437,533 33,174,375 1,335,699 31,838,677 388,955,182 6,367,735 25,470,941 311,164,146 *
* 36 2026-27 3,700,673,013 0 3,559,537,637 35,595,376 1,389,130 34,206,247 423,161,429 6,841,249 27,364,997 338,529,143 *
* 37 2027-28 3,959,720,124 0 3,818,584,748 38,185,847 1,443,629 36,742,218 459,903,647 7,348,444 29,393,775 367,922,918 *
* 38 2028-29 4,236,900,533 0 4,095,765,157 40,957,652 1,499,219 39,458,433 499,362,080 7,891,687 31,566,746 399,489,664 *
* 39 2029-30 4,533,483,570 0 4,392,348,194 43,923,482 1,555,920 42,367,562 541,729,642 8,473,512 33,894,050 433,383,713 *
* 40 2030-31 4,850,827,420 0 4,709,692,044 47,096,920 1,613,755 45,483,165 587,212,807 9,096,633 36,386,532 469,770,246 *
\palmdst\taxinpro
PALM DESERT REDEVELOPMENT AGENCY TABLE C
FOOTNOTES TO TABLE C
PROJECT AREA NO. 3
TAX INCREMENT PROJECTIONS
(1) Base Year Secured Assessed Valuation provided by the Riverside County Office of the
County Auditor Controller's January 2, 1991 Base Year Report. Subsequent years have
an estimated annual growth rate of seven percent (7%), which is based upon analysis
the Local Assessed Roll in the city over the past four years.
(2) New Development data derived from City of Palm Desert General Plan.
(3) Net Incremental Valuation equals Base Year Assessed Valuation less annual estimated
Secured Assessed Valuation plus annual New Development.
(4) Estimated Gross Tax Increment equals 1% of the Net Incremental Valuation and is the
gross amount of tax revenue generated by the project.
(5) 2% Inflation Pass Through is computed by projecting a 2% growth (inflationary) rate
from the Base Year Assessed Valuation. The resulting 2% Increment is then multiplied
by the net tax rate: (1%) less the City of Palm Desert's share (.0535%).
(6) Adjusted Gross Tax Increment equal the Estimated Gross Tax Increment less the 2%
Inflation Pass-through.
(7) Cumulative Annual Total is the total Adjusted Gross Tax Increment accumulated over
the term of the projections.
(8) The Low and Moderate Housing Fund is the annual amount set aside based upon a
required 20% of the annual Adjusted Gross Tax Increment.
(9) Estimated Agency Funds equals the Adjusted Gross Tax Increment less the annual
Low and Moderate Housing Fund set aside. This amount is the total annual funds
available to the Redevelopment Agency.
(10) Cumulative Annual Total is the total Estimated Agency Funds accumulated over the term
of the projections.
SECTION D AND E
DESCRIPTION OF SPECIFIC PROJECTS PROPOSED BY
THE AGENCY AND HOW THESE PROJECTS WILL
ALLEVIATE CONDITIONS DESCRIBED IN SECTIONS A
AND B ABOVE
The types and nature of projects to be undertaken by the Agency will evolve over time and
are dependent on such contingencies as owner-participation interest and capability,
developer interest and marketability, and funding levels. The following presents a list of
potential projects and the problem conditions as described in Sections A and B of this
Report that will be alleviated.
TABLE D
PROPOSED REDEVELOPMENT PROJECTS
PALM DESERT PROJECT AREA NO. 3
TRAFFIC/CIRCULATION IMPROVEMENTS
1. Cook Street entire length of Project Area,: Widen roadway to 2 lanes
in each direction (where necessary) to maintain a consistent width and
provide left turn lanes. $ 100,000
2. Cook Street i Whitewater Channel: Construct Bridge over Channel
to reduce and eliminate traffic congestion during instances of
flooding, and to improve sight lines for motorists attempting
to turn onto Cook Street from Sheryl Avenue. 4,900,000
3. East side of Cook Street: Construct roadway connecting business/
industrial parks to eliminate back-to-back left turns and improve
access. 250,000
4. Rebecca Road: Construct extension of roadway north to Hovely Lane. 264,000
5. 42nd Avenue: Construct extension of roadway west to Rebecca Road. 20,000
6. Valley Industrial Park: Provide additional access by constructing
roadway from 42nd Avenue and/or Merle Drive to Joni Drive and/or
Velie Way. 90,000
7. Cook Street: Provide roadway from Project Area to I-10. 1,000,000
.p+lt\paepc\.ead< 28 1/13/91
8. Joni Drive: Construct extension of roadway west to Rebecca Road. 66,000
9. Velie Way: Construct extension of roadway west to Rebecca Road. 66,000
10. Cook Street: Realignment of'T' intersections, such as Green Way,
Velie Way and Joni Drive @ Cook Street, to eliminate back-to-back
left turns and stacking problems. 300,000
11. Cook Street entire length of Project Area: Construct landscaped
median to control and direct traffic flow. 275,000
12. Cook Street area industrial/business parks: Construct off-street
parking area(s) or structure(s) to reduce on-street parking and
alleviate traffic circulation problems. 4,000,000
13. Cook Street area industrial/business parks: Develop a staging area
for truck drivers to await loading/unloading instructions and
opportunity. 1,000,000
14. 42nd Avenue: Construct extension of roadway west to Portola
Avenue. 350,000
15. Cook Street area industrial/business parks: Develop remote parking
facilities for employees to allow patrons to park near businesses. 2,000,000
16. Sego Lane: Extend Se$o Lane west to Cook Street to align with Joni
Drive. Construction will encourage cross traffic and reduce congestion. 250,000
17. Cook Street: Signalize one or more of the following intersections to
control traffic speed, alleviate left turn problems and provide
pedestrian crossings. Signals will also reduce traffic collisions. 750,000
- Hovely Lane @ Cook Street
- Sego Lane/Joni Drive @ Cook Street
- Merle Drive @ Cook Street
- 42nd Avenue @ Cook Street
- Sheryl Avenue @ Cook Street
- Velie Way @ Cook Street
18. Cook Street (& I-10: Construct on/off ramps to provide additional
access to the Project Area and the City. 19,000,000
TRAFFIC AND CIRCULATION PROJECTS $ 34,681,000
DRAINAGE SYSTEM IMPROVEMENTS
1. Entire Project Area: Conduct extensive drainage study to determine
types and locations of improvements to alleviate uncontrolled run-off,
standing water, and other drainage problems. $ 125,000
2. Entire Project Area: Construct improvements determined necessary by
above study. 1,000,000
palmdst\prcrpt\sead-e 29 1/13/91
SEWER SYSTEM IMPROVEMENTS AND UTILITY UNDERGROUNDING
1. Residential Neighborhoods: Construct sewers to eliminate the need for
septic tanks. 500,000
2. West side of Cook Street: Undergrounding of overhead utility lines.
Project will enhance the visual aesthetics and improve utility service
by reducing potential service interruptions due to inclement weather or
accidents involving utility poles. 2,000,000
DRAINAGE, SEWER SYSTEM & UTILITY IMPROVEMENTS $ 3,625,000
COMMUNITY AND CULTURAL FACILITIES
1. Recreation Center/Park: Construct a 20 acre multi-use recreation
center/park on Hovely lane west of Corporate Way for Project Area
and community residents. $ 7,500,000
2. Library Facility: Construct a branch library for Project Area and
community residents. 8,000,000
3. Sheriff Station: Construct a Sheriff Station with holding cells.
Project will eliminate the need to transport prisoners to Indio for
processing thereby increasing patrol potential within the City. 5,000,000
4. Industrial Waste Recycling/Disposal Program: Design programs for
recycling and disposing of industrial waste. 250,000
5. Fire Protection: Increase water pressure and flow to the Project Area
and surrounding areas to improve fire safety. Cost unknown
at this time.
COMMUNITY AND CULTURAL FACILITIES $ 20,750,000
COMMUNITY DEVELOPMENT PROGRAMS
1. Commercial/Industrial Rehabilitation Fund: Provide funds for
commercial/industrial loans, grants, and/or rebates to assist in the
rehabilitation of structures throughout the Project Area. The
program could fund structural, facade, sign, parking, site access/
circulation, and landscape improvements. The program would
enhance the economic viability and overall aesthetics of the
commercial and industrial districts. $ 15,000,000
2. Commercial/Industrial Relocation/Expansion Fund: Provide funds
to assist commercial/industrial businesses to relocate elsewhere
in the Project Area or expand current facilities. 30,000,000
COMMUNITY DEVELOPMENT PROGRAMS $ 45,000,000
pa1mda\PRRX\Kad< 30 1/13/91
HOUSING/LOW-MODERATE INCOME ASSISTANCE
As provided by Section 33334.2(a) of the Health and Safety Code, unless certain findings
are made, not less than 20 percent of all tax increment allocated to the Agency shall be
used by the Agency for the purpose of increasing, improving or preserving the community's
supply of low and moderate income housing. This assistance will be provided in the form
of rehabilitation grants to low and moderate income household owners, through the
construction of low and moderate income housing units, and through the encouragement of
development of rental units held at low and moderate income levels.
Administration
10 years at 50,000 per year $ 500,000
10 years at 30,000 per year 300,000
20 years at 25,000 per year 500,000
Total Administrative Costs $ 1,300,000
SUBTOTAL $ 105,356,000
Plus: 10% contingency 10,535,600
Plus: 25% for inflation 26,339,000
TOTAL ESTIMATED COST $ 142,230,600
Financing for 25 years @ 12% 453,359,930
20% Housing Set-Aside 113,339,983
TOTAL TAX INCREMENT REQUIRED $ 566,699,913
PUBLIC IMPROVEMENT PROJECTS
The proposed public improvements have been identified to facilitate the redevelopment of
the Project Area and to address and remedy the severe, adverse, deficient conditions
\P•�\P�\aeaaa 31 1/13/91
outlined in Sections A and B of this report. This program has been developed by the
Agency to encourage development of properties by removing constraining conditions which
limit new development.
The aforementioned traffic and circulation improvements are designed to improve access
to the Project Area and to mitigate existing traffic congestion. These improvements will
also upgrade the circulation system to withstand additional traffic volumes due to
intensification of uses and/or new development. The construction of additional sewer lines
and upgrading existing capacity, if necessary, will improve service to needy areas and
reduce health and safety risks. Undergrounding of overhead utilities will improve utility
service to existing uses and potential new development and reduce service interruptions.
Construction of storm drains and related drainage improvements will reduce standing
water and erosion caused by uncontrolled run-off. The types of public improvement
projects are such that private enterprise acting alone cannot be expected to alleviate or
improve the adverse conditions in the absence of the aforementioned improvements.
COMMUNITY AND CULTURAL FACILITIES
Recreation facilities are lacking in the Project Area and City at large. The proposed multi-
use recreation center will provide needed facilities for Project Area and community
residents. Library facilities are also underprovided within the Project Area. A new branch
library will provide needed services to the Project Area and community residents. Because
of the general growth in population of the City and all surrounding desert communities,
police facilities are stretched well beyond their capacity. The need now exists to provide a
Sheriff's station within or in close proximity to the Project Area. The provision of one
Sheriff station will greatly improve the health and welfare of the Project Area residents.
',palmdst\prerpr\secede 32 1/13/91
Additionally, the industrial waste recycling - disposal program and increased fire flow
protection (water pressure) to the Project Area will correct hazardous and unsafe
conditions now present in the Project Area and community.
COMMUNITY DEVELOPMENT PROGRAMS
Commercial/industrial rehabilitation and recycling programs within the Project Area will
address the problems of obsolete and out of date structures, landscaping and signage.
Insufflicient inadequate or hazardous parking, site access and circulation improvements.
HOUSING PROGRAMS
Portions of the Project Area suffer from deteriorated and unmaintained housing stock.
The Agency will address the housing needs and problems of the Project Area in
cooperation with the City and the community at-large through the implementation of a
multifaceted program to address the various housing needs. Such programs will include
rehabilitation loans and grants, neighborhood public improvements, and methods for
enhancing private investment into existing neighbors.
\palcodst\prr,p\,eud.c 33 1/13/91
EXHIBIT A
PROJECT AREA MAP
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EXHIBIT B
REGIONAL LOCATION MAP
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REGIONAL LOCATION
EXHIBIT B
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ATTACHMENT A
ATTACHMENT A
Definitions of blight and urbanized areas as described in the Community Redevelopment
Law, Sections 33030, 33031 and 33032.
Section 33030:
It is found and declared that there exist in many communities blighted areas which
constitute either physical, social, or economic liabilities, requiring redevelopment in the
interest of the health, safety, and general welfare of the people of such communities and of
the state.
A blighted area is one which is characterized by one or more of those conditions set forth
in Sections 33031 or 33032, causing a reduction of, or lack of, proper utilization of the area
to such an extent that it constitutes a serious physical, social, or economic burden on the
community which cannot reasonably be expected to be reversed or alleviated by private
enterprise acting alone.
Section 33031:
A blighted area is characterized by the existence of buildings and structures, used or
intended to be used for living, commercial, industrial, or other purposes, or any
combination of such uses, which are unfit or unsafe to occupy for such purposes and are
conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, and
crime because of any one or a combination of the following factors:
(a) Defective design and character of physical construction.
(b) Faulty interior arrangement and exterior spacing.
\palmdst\prerpt\attach& a-1
(c) High density of population and overcrowding.
(d) Inadequate provision for ventilation, light, sanitation, open spaces, and recreation
facilities.
(e) Age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses.
Section 33032:
A blighted area is characterized by properties which suffer from economic dislocation,
deterioration, or disuse because of one or more of the following factors which cause a
reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a
serious physical, social, or economic burden on the community which cannot reasonably be
expected to be reversed or alleviated by private enterprise acting alone:
(a) The subdividing and sale of lots of irregular form and shape and inadequate size for
proper usefulness and development.
(b) The laying out of lots in disregard of the contours and other topography or physical
characteristics of the ground and surrounding conditions.
(c) The existence of inadequate public improvements, public facilities, open spaces, and
utilities which cannot be remedied by private or governmental action without
redevelopment.
(d) A prevalence of depreciated values, impaired investments, and social and economic
maladjustment.
\palmde*\pnrpt\attach. a-2